2012 financial results
April 4, 2013
Riber – 2012 full-year earnings - April 2013 2
Contents
Profile
2012 markets
2012 business
2012 results
Strategy
Outlook
Stock market data
Profile
Riber – 2012 full-year earnings - April 2013 4
RIBER in brief
World leader for dedicated semiconductor alloy prod uction and complex material deposition systems
MBE (Molecular Beam Epitaxy) systems
Equipment for producing CIGS solar cells, OLED screens and new-generation microprocessors
High-performance solutions for microelectronics and nanoelectronicsQuicker microprocessors and memory
Low-consumption and high-intensity lighting
Thin sensors (luminosity, magnetism, molecular composition, etc.)
Major technological expertise, recognized by the ma rket's leading players
44
initial business
diversification
Riber – 2012 full-year earnings - April 2013
Molecular beam epitaxy(MBE) machines
Service contracts, accessories and spare
parts
Material deposition industrial tools and
effusion cells
Integrated leading -edge industrial firm
5
• Technical and scientific support;• Technical support on request for
system upgrades;• Curative and preventative
maintenance service
Development around three product lines
71% of 2012 revenues 8% of 2012 revenues(41% in 2011)
22% of 2012 revenues
MBE cells
Selenium deposition tools for producing solar panels
OLED cells
Riber – 2012 full-year earnings - April 2013 6666
Global base of leading clients
Industrial firms from electronics, new energies and lighting sectors
(~ 40% of business)
University laboratories and research centres(~ 60% of business)
Riber – 2012 full-year earnings - April 2013
Diversified geographical markets
7
Breakdown of installed base of Riber MBE systems
32%
34%
35%
production site
commercial subsidiaries
project to establish presence
agents
2012 markets
Riber – 2012 full-year earnings - April 2013
MBE market – Production and R&D
Production:Cyclical market
Consolidation production capacities in 2012
Annual growth of around 3% from 2013 to 2016
R&D:Relatively stable market, with growth forecast between 2013 and 2016
Riber number 1, with a market share of over 50%
Geographical diversification
9
Riber – 2012 full-year earnings - April 2013
Photovoltaic technological roadmap
10
Concentrators(MBE)
CIGS (OEM)
Riber – 2012 full-year earnings - April 2013
Photovoltaic market
Riber present on two flagship technologies:
Concentrators (MBE)
CIGS (OEM)
Demand doubling every 2-3 years
Massive overcapacity in terms of supply
Riber maintaining its objectives for growth
Sustained R&D drive:New production system
Full range of low and high-temperature linear cells
11
Riber – 2012 full-year earnings - April 2013
OLED market
OLED display market
12
Riber focused on the market for OLED screens
General prospects intact
Two major players: Samsung and LG
Developing competition in China
Technological obstacles:
Cost price: AI use
Gen 8 consistency (TV)
Screen reliability & stability
First “reasonably-priced” TVs in 2014
Riber offers a full range of cells
2012 business
Riber – 2012 full-year earnings - April 2013
Highlights
Achievement of the strategic revenue target on MBE, w ith a record level of research MBE business
Acceleration of growth in emerging markets (China, Russ ia, Turkey, etc.)
Improvement of the commercial organisation in the depa rtments and return to growth in business
Sustained R&D drive
Healthy financial position, free from debt
High level of profitability, with €1.8 M in EBITDA
14
Riber – 2012 full-year earnings - April 2013
Systems business
6.5 5.8
15.64.6 5.7
3.8
2010 2011 2012
Historically high revenues for research MBE
17 systems delivered, including 2 production systems
Sales growth in China and Russia, Riber's leading markets in 2012
Order book at end-2012 for 11 systems to be delivered in 2013, picking up again at the start of 2013
15
7.5
13.610.1
5.8
3.8
2010 2011 2012
R&D systems Industrial systems
17.4
10.1
13.3
+68%
-42%
Revenuesat December 31 (€ M)
Order bookat December 31 (€ M)
11.5
19.4
11.1
Riber – 2012 full-year earnings - April 2013
Services and accessories business
6.5
5.45.9
2010 2011 2012
Upturn in sales resulting from the business plan
General slowdown in demand on the global market
16
1.8
1.4
1.7
2010 2011 2012
+9%
+21%
Revenuesat December 31 (€ M)
Order bookat December 31 (€ M)
Riber – 2012 full-year earnings - April 2013
Cells business
1.8
10.6
1.2
1.3
1.4
0.9
2010 2011 2012
OEM cells Other
In 2012, delivery of a contract for OLED cells, following on from the major orders delivered in Asia in 2011
Delays with the business plans for OLED and solar due to technical difficulties encountered by the industry
Emergence of competition from Korea on OLED equipment
Ability to bounce back thanks to innovation and the development of new ranges of cells
Project to establish a commercial presence in South Korea in 2013
17
2.2
0.6
0.2
2010 2011 2012
-83%
-59%
Revenuesat December 31 (€ M)
Order bookat December 31 (€ M)
12.0
2.13.1
Riber – 2012 full-year earnings - April 2013
Product mix centred around MBE in 2012
40%
19%
41%
at December 31, 2011
71%
22%
8%
at December 31, 2012
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Systems Components and after-sales service
Cells
Breakdown of revenues by business
€27.4 M€29.0 M
Riber – 2012 full-year earnings - April 2013
Balanced geographical mix
32%
52%
16%
at December 31, 2011
42%
42%
16%
at December 31, 2012
19
Breakdown of revenues by region
Europe Asia Americas
€27.4 M€29.0 M
o/w China(14%)
o/w Russiaand Turkey(13%)
o/w China(18%)
o/w Russiaand Turkey(24%)
86% of sales for export
2012 results
Riber – 2012 full-year earnings - April 2013 21212121
Income statement
(€ M - IFRS) 2012 2011 ����
Revenues 27.4 29.0 -5%Change in provisions on inventories 0.6 1.7 -65%
Gross margin% of revenues
9.133.2%
12.442.9%
-27%
CommercialResearch and development
Of which, gross expenditureOf which, other items (research tax credit, subsidies, etc.)
AdministrationOther income and expenses
(4.5)(1.1)(3.1)2.0
(2.2)0.7
(4.3)(1.6)(2.0)0.4
(1.9)(0.2)
+5%-35%+54%+402%+14%-416%
Operating income% of revenues
2.07.2%
4.315.0%
-55%
Pre-tax earnings 2.2 4.5 -52%Net income% of revenues
1.97.0%
4.314.8%
-55%
EBITDA% of revenues
1.86.6%
2.79.3%
-33%
Riber – 2012 full-year earnings - April 2013
4.3
2,0
-0,5
-1,8
-0,2+0,6
-0,3 -0,1
2011 operating
income
Volume effect Mix effect Commercial R&D Administration Other 2012 operating
income
Operating income trends
22
Breakdown of main changes:(€M)
Riber – 2012 full-year earnings - April 2013
36.3
Balance sheet at December 31, 2012
5.3
1.7
8.0
5.0
5.3
1.0
10.0
3.4
3.5
2.60.8
26.0
23
Fixed assets
Financial assets
Inventories
Cash
Shareholders' equity
Non-current provisionsTrade payables
Assets Liabilities
(€M)
Work-in-progress
Trade receivables
Other current assets
Other operating liabilities
Client advances
Riber – 2012 full-year earnings - April 2013
Cash flow trends
12.1
-0.3
5.3
+1.9
+1.1-2.9
-2.1
-0.8
-2.1
-1.5
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(€M) Change in working capital: (4.7)
Riber – 2012 full-year earnings - April 2013
Innovation drive ramped up
25
2.1
2.8
3.6
10.3%
10.1%
13.1%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
0
0.5
1
1.5
2
2.5
3
3.5
4
2010 2011 2012
R&D effort (€M) R&D effort (% rev)
Change in R&D effort (*)
(*) including gross R&D costs (€3.1 M in 2012), the cost of capitalised prototypes and R&D costsincluded in the costs of sales
Riber – 2012 full-year earnings - April 2013
2012 dividend
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2012 2011 2010 2009
Dividend per share €0.04 €0.08 €0.06 €0.04
Average price €2.83 €3.03 €1.82 €1.16
Return 1.4% 2.6% 3.3% 3.4%
Strategy
Riber – 2012 full-year earnings - April 2013
Roadmap for value creation
Short term Medium term Long term
Riber – 2012 full-year earnings - April 2013 29
Generating value through the initial business: MBE systems, cells and services
Consolidating dynamic commercial developmentDevelopment of the range in line with the needs of research centres (reduction in operating costs)Market share gains, particularly on emerging markets
Further strengthening the technological leadTwo new systems: Compact 21 EB and MBE412MBE 8000 project: prototype being produced
Developing revenues for services and components on the installed baseImprovement of the range of services offeredDevelopment of sales of MBE cells
Riber – 2012 full-year earnings - April 2013 30
Diversification of activitiesOEM OLED and CIGS cells
OLED
Contribute towards the resolution of Gen 8 (TV) technical difficulties
Extend the offer to include cells for depositing organic materials
Vulcan S250 being tested in Japan and KoreaDedicated cell for the intensive vaporisation of
complex materials, particularly aluminium.
Very high-output cell: capacity (3 to 5 litres of materials), temperature (1800°C filament) and evaporation speed.
CIGS solar panels
Support for CIGS pioneers:Development of CIGS technique in the US
Support for production in Germany
Ramping up of innovation and development of the Jet rangeJetLin, new energy-efficient, large-area and high-temperature deposition solution
Modular cell for the vaporisation of other complex materials (Cu, Ag, Co, Fe, Ni)
Commercial outlets from 2014
Riber – 2012 full-year earnings - April 2013
Development of future growth drivers
Partners
Further strengthening RIBER’sexpertise in thin-film technologies and advanced concepts
Objectives
Applications New-generation photovoltaic solar devices
Compound semiconductor passivationUltrarapid CMOS manufacturing
Developing a range of RIBER MBE systems for silicon production (SEMI standards):
ISA 3000 (CMOS)
MPV300 (MRAM), system in applied research phase with a major industrial operator in Asia
Institut Photovoltaïque d’ile de France (IPVF)
Integration of MBE within the silicon production line
Programmes
Structuring collaborative research programmes
Outlook
3232
Riber – 2012 full-year earnings - April 2013 3333
Strategy for profitable growth
Developing the MBE Systems rangeNew applicationsClusters and instrumentation
Developing the Services business and the MBE Cells rangeStronger sales driveRationalisation of the range of MBE cells
Developing the OEM Cells rangeProduction support for CIGSTechnological advances on OLED, following on from the successes achieved in 2011
New concepts for OEM MBE systemsDevelopment of a machine in line with SEMI standardsResearch programmes underway through industrial partners
Riber – 2012 full-year earnings - April 2013
Order book
10.1
14
1.7
1.4
0.2
0.1
Dec-12 Feb-13
34
12.0
Systems Components and after-sales service
Cells
(€M)
15.5
Riber – 2012 full-year earnings - April 2013
Governance further strengthened
To support Riber’s growth strategy, the following have been coopted as new members of the Supervisory Board:
Dominique Pons, director for Thales in GIE III-V Lab
Gildas Sorin, CEO of Novaled
Extensive experience in the compound semiconductor a nd OLED industries
Appointments submitted for approval at the upcoming g eneral meeting of RIBER's shareholders
35
Stock market data
Riber – 2012 full-year earnings - April 2013 37
Share price trends
3737
Market capitalization: €54.3 M (€2.81 per share at Marc h 28, 2013)
Source: NYSE-Euronext
Riber – 2012 full-year earnings - April 2013
Shareholding structure
Listed on NYSE-EURONEXT Paris since 2000
Part of the CAC Small, CAC Mid & Small, CAC Technology and CAC T. HARD. & EQ indices
ISIN: FR0000075954
Reuters: RIBE.PA
Bloomberg: RIB FP
Certification by OSEO-ANVAR, the dedicated French innovation agency, renewed in July 2012, enabling it to qualify for French innovation mutual funds (FCPI)
38
Float46.1%
NG Investments andNoël Goutard
28.6%
ISA Finances, Socodoland Mr and Mrs Raboutet
14.0%Ormylia and
Jacques Kielwasser11.6%
Appendices
Riber – 2012 full-year earnings - April 2013 40
Research
Production
Business model with technological drivers identified
1996 2000 2004 20081990 19941982 19861978 2012
MBE 49 oxide
200 mm
VAC500
VAC 6000/20000
Evaporation sourcesMBE
OLED
MPVD300
ISA300
Solar
Riber – 2012 full-year earnings - April 2013 41
Molecular Beam Epitaxy (MBE)
41
Epitaxial wafer
Molecular beam
Molecular beam
obturator
Evaporation sources
Furnace
Riber – 2012 full-year earnings - April 2013
RF components for RF components for RF components for RF components for telephony and telephony and telephony and telephony and
telecommunicationstelecommunicationstelecommunicationstelecommunications
Lasers and diodes Lasers and diodes Lasers and diodes Lasers and diodes for fibrefor fibrefor fibrefor fibre----optic optic optic optic
Instrumentation Instrumentation Instrumentation Instrumentation and lightingand lightingand lightingand lighting
Sensors for night Sensors for night Sensors for night Sensors for night vision and vision and vision and vision and
various detectorsvarious detectorsvarious detectorsvarious detectorsSolar cellsSolar cellsSolar cellsSolar cells
42
MBE: presence upstream from the value chain
Substrate or wafer
Source materials
Epiwafers Processed epiwafers
Electronic devices
Final applications
RF electronics
Sensors
Optoelectronics
Epitaxysystems
Riber – 2012 full-year earnings - April 2013
MBE and OEM business
43
RIBER MBE
system
Screen - OLED
Thin Film - Photovoltaic
Light - OLEDTV - OLED
DIVERSIF
ICATIO
N
OEM
Riber – 2012 full-year earnings - April 2013
Cells: OEM positioning
44
Manufacturing process for OLED (Organic LED) screen s