VISION - LPKF Laser & Electronics AG

VISION
Focus on the Future
9-Months Financial Report
Conference Call
Dr. Ingo Bretthauer (CEO), Kai Bentz (CFO)
13 November 2012
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All

LPKF: Mechanical Engineering and Laser Specialists
AGENDA
• Business Model and Segments
• Financials
• Strategy and Outlook
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IR

Replacing traditional production
technologies
• Production of electronic devices is still dominated by
mechanical or chemical methods.
• Miniaturization and shorter product cycles are
challenging electronic manufacturers.
• Laser technology is more precise, faster and more
flexible than e.g. saws, punchers and routers in the
production of electronics.
• The success of laser technology in electronic production
ultimately depends on economics. This is our challenge!
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Focus on core skills
Laser Technology
& Optics
Precision
Drive
Technology
Micro Material
Processing with
Lasers
Control Technology
& Software
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LPKF Worldwide
Garbsen Germany
Suhl Germany
Erlangen Germany
Beijing China
Tianjin China
Tualatin (OR) USA
Naklo Slovenia
Suzhou China
Tokyo Japan
Chengdu China
Shanghai China
Hong Kong China
Shenzhen China
Head Office / Production
Offices
Total export share: 89%
Export share Asia: 55%
Share of revenue invoiced in EUR: 80%
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MG/MK/IR

Segments
Electronics
Plastics
Solar
Electronics Development
Equipment
Electronics Production
Equipment
Other Production
Equipment
Rapid PCB Prototyping Equipment
Stencil
Laser
Equipment
PCB
Production
Equipment
LDS
Production
Equipment
Welding
Equipment
Solar
Module
Equipment
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PCB Production Equipment
PCB Production lasers:
Laser systems for cutting assembled and
unassembled printed circuit boards (PCBs)
Customers:
PCB manufacturers,
PCB assemblers
Market position: Marketleader
Competition:
HAN‘S (China),
ESI (USA)
and other smaller suppliers
Strategic goal:
Become the preferred
supplier of leading
electronics
manufacturers
MicroLine 1120S und 1120P
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LDS Production Equipment
Structuring lasers for the production of molded interconnect devices
using the LDS method patented by LPKF
Customers:
Market position:
Competition:
Next step:
Strategic goal:
Manufacturers of electronic
components and equipment
Marketleader
LDS technology can be found in
approx. 50% of all smartphones and
approx. 20% of all cell phones
alternative methods
Expansion into other areas of
application (laptops, tablet PCs,
etc.)
Establish LPKF LDS as the standard
process for the production of certain
MID types
LPKF Fusion3D 1500
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Welding Equipment
Laser welding of plastic components
Customers:
Automotive
Medical technology
Others
Market position: Market leader in Europe
USA: Top 2, Asia: Top 3
Competition:
Current task:
Strategic goal:
Branson (USA)
Bielomatik (D)
Leister (CH)
Increase profitability
Become the preferred supplier
of international companies,
achieve market leadership
LPKF LQ Vario
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Solar Module Equipment
Structuring thin film solar panels
Customers:
Market position:
Competition:
Current task:
Strategic goal:
Thin film solar panel manufacturers
Market leader
Manz (D)
Innolas (D)
Take care of the orders under the general agreement,
refine LPKF’s own technologies
Further improve the competitiveness of thin film
technologies
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Future PV Installations (GW/yr)
“next wave”
Transition year
source: Photon Consulting LLC 2012
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Revenue split per segment
Q3 2012: 82.5 m EUR
Others
Other Production
Equipment
33%
1%
51%
Electronics
Production Equipment
Q3 2011: 60.8 m EUR
27%
3%
15%
50%
Electronics Development
Equipment
20%
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Portfolio in 2012e
Plastic
Welding
LDS
Market Growth
PCB Production
Rapid Prototyping
Solar
Stencils
Relative Market Share
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Exceptionally high profitability
120
100
80
60
40
20
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e
Revenue
EBIT
• LPKF has grown profitably every single year since it started in
1976.
• We only target business areas that promise EBIT-margins of at
least 10 % in the medium term.
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LPKF: Mechanical Engineering and Laser Specialists
AGENDA
• Business Model and Segments
• Financials
• Strategy and Outlook
15

Financial Highlights
after 9 months 2012
• Revenue: € 82.5 million, + 36% yoy
(QIII 2012: € 32.2 million; + 39% yoy)
• EBIT : € 14.8 million, + 61% yoy
(QIII 2012: € 7.3 million, + 86% yoy)
• EBIT margin: 18% , previous year 15%
(Q III 2012: 23%, Q III 2011: 17%)
• Incoming orders at € 85 million = book to bill > 1
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Key Group Figures
after 9 months 2012
9 months
2012
9 months
2011
Change % FY 2011
Revenue (EUR million) 82.5 60.8 35.8 91.1
EBIT (EUR million) 14.8 9.2 61.1 15.2
EBIT margin (%) 17.9 15.1 16.7
Free Cash Flow (EUR million) 1.7 -14.2 112.1 -10.9
Net working capital (EUR
million)
47.7 34.5 38.3 39.7
ROCE (%) 18.8 14.6 23.4
EPS, diluted (EUR) 0.82 0.55 49.1 0.90
Orders on hand (EUR million) 27.6 30.5 -9.3 25.2
Incoming orders (EUR million) 84.9 78.7 8.0 104.0
Employees 664 572 16.1 602
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All, MG

Revenue
after 9 months 2012
(EUR million)
9 months
2012
9 months
2011
Change % FY 2011
Revenue 82.5 60.8 35.8 91.1
Revenue by segment
Electronics Development Equipment 12.4 12.1 2.5 18.1
Electronics Production Equipment 41.7 30.5 36.8 45.2
Other Production Equipment 27.0 16.4 65.0 25.5
All other segments 1.4 1.8 -23.0 2.3
Revenue by region
Germany 9.1 9.3 -2.2 13.3
Other Europe 8.7 7.6 14.4 10.3
North America 18.3 13.9 31.9 22.0
Asia 45.4 28.2 61.2 43.2
Other 1.0 1.8 -46.6 2.3
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IR

Revenue and EBIT by Segment
in EUR million Revenue EBIT
9 months
2012
9 months
2011
9 months
2012
9 months
2011
Electronics Development
Equipment
Electronics Production
Equipment
Other Production
Equipment
All other segments
12.4 12.1 1.9 2.3
41.7 30.5 10.4 7.3
27.0 16.4 3.4 0.3
1.4 1.8 -0.9 -0.7
Total 82.5 60.8 14.8 9.2
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IR / AR

Solid Balance Sheet Structure
Sept 30,
2012
Dec 31,
2011
Total assets (EUR million) 103.8 89.6
Cash and cash equivalents (EUR million) 8.2 7.0
Equity (EUR million) 54.9 49.8
Equity ratio (%) 52.9 55.6
Net financial debt (EUR million)* 15.4 8.3
• *The change in net financial debt is due to expanding business and a due payment
for the acquisition of minority shares.
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Positive Free Cash Flow
in EUR million
9 months
2012
9 months
2011
Net cash used in/generated by operating activities 8.8 -2.6
Net cash used in investing activities -7.1 -11.5
Free cash flow 1.7 -14.1
Net cash generated from/used in financing activities -0.6 7.0
Cash and cash equivalents (net) 6.5 6.0
• Positive cash flow from operating activities is a result of the strong EBIT.
• Investments in 2012 are back at normal level after strong investments in 2011.
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Share price development (1 year)
• Market capitalization has reached approx.
EUR 160 million.
• LPKF was promoted to TecDAX on
September 5th, 2012. The index comprises the 30 leading
German technology stocks.
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TecDAX(R) is a registered Trade Mark by Deutsche Börse AG
IR

LPKF: Mechanical Engineering and Laser Specialists
AGENDA
• Business Model and Segments
• Financials
• Strategy and Outlook
23

Investment Highlights
• Exceptionally high profitability
• Tight focus on core skills
• Innovation excellence
• Replacing traditional production technologies
• Growth in dynamic markets
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Guidance for 2012 raised slightly
New Guidance for 2012:
• Revenue of € 106 -109 million
(previously: € 100 – 105 million)
• EBIT margin between 16 - 17%
(previously: 15 – 17%)
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Outlook for 2013 - 2014
New Guidance for 2013:
• Revenue to grow slower because of solar effect*
• EBIT margin between 14% and 16%
Guidance for 2014:
• Revenue to grow approx. 10% p.a.
• EBIT margin between 15% and 17%
Note:
•*The revenue in 2012 was influenced by a major order from the solar industry.
As the solar market remains weak, LPKF has to prepare for a decline in
revenues from this product line.
• Meeting these targets is contingent on a stable global economic
development.
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Legal Notice
Disclaimer
Disclaimer regarding forward-looking statements
This document contains forward-looking statements and statements on future expectations which reflect the current
opinions and expectations of the management with respect to future events. These statements are subject to known
and unknown risks and uncertainties which can neither be controlled nor precisely estimated by LPKF Laser &
Electronics AG, and which could cause actual results, performances and events to differ materially from those forecast
or indicated here.
Actual results, performances and events may deviate to an unlimited extent as a consequence of: (i) general economic
conditions, (ii) future changes in the performance of the financial markets, (iii) interest rates, (iv) currency exchange
rates, (v) the behavior of other market participants, (vi) general competitive factors, (vii) changes in laws and
regulations, (viii) changes in the policies of central banks, government authorities and/or (foreign) governments, (ix)
regional and/or global conditions.
LPKF assumes no liability and does not intend to update any forward-looking statements to reflect any events or
conditions the take place after the publication of this material.
No updating
LPKF AG assumes no liability for the (correctness and completeness of the) information contained herein, and does
not intend to update this material.
No offer
This presentation is merely intended to provide information and is not an investment recommendation. It is not an offer
and is merely intended for general information purposes. All the descriptions, examples and calculations contained in
this presentation are only provided for the purpose of illustration.
Registered trademarks
All the names and trademarks referred to in this document are covered by unlimited copyright laws, and may not be
used without the express permission of the relevant registered owners. The fact that they are mentioned in this
document does not imply that they are not protected by the rights of third parties or companies.
LPKF Laser & Electronics AG, 2012
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LPKF Laser & Electronics AG · Osteriede 7 · 30827 Garbsen · www.lpkf.de
Contact: Bettina Schäfer, Manager Investor Relations,
Tel: +49 5131-70 95 1382, E-mail: bettina.schaefer@lpkf.com
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