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Summer 2015 IR Presentation – Advanced Energy

Advanced Energy · Jul 1, 2015 · 22 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Summer 2015 IR Presentation – Advanced Energy – slide 1
    Summer 2015 IR Presentation
  2. Summer 2015 IR Presentation – Advanced Energy – slide 2
    Driving Shareholder Value Grow & Diversify Revenue Base Generate & Deploy Cash Expand Margins Note: Please note that hypothetical scenarios regarding revenue growth, EBITDA, EPS, cash generation, acquisitions, aspirational…
  3. Summer 2015 IR Presentation – Advanced Energy – slide 3
    Precision Power Solutions Enable Critical Applications PRECISION MATERIAL PROCESSING AC INDUSTRIAL POWER CONTROLLABLE DC MEDICAL DIAGNOSTICS STABLE RF / TREATMENT CLEAN HV ACCURATE ANALYTICAL PCM EQUIPMENT…
  4. Summer 2015 IR Presentation – Advanced Energy – slide 4
    Highly Competitive Model GROWTH Precision Power Conversion Focus, OPINC Leadership & Talent CASH FLOW Operational Excellence Global Footprint, Diverse Markets, Critical Applications 5
  5. Summer 2015 IR Presentation – Advanced Energy – slide 5
    Vision for Growth Value Products IP and knowhow content Highly-engineered Leverage core competencies Design-in long term customer relationships Mission and Enabler of performance High stakes applications high cost of failure…
  6. Summer 2015 IR Presentation – Advanced Energy – slide 6
    Revenue Growth Vision Solvix Power Control Modules NEW New Applications, New Solutions HiTek Power and UltraVolt APPLICATIONS Non-Plasma Applications High Voltage, High Power, Industrial Applications, Instrumentation,…
  7. Summer 2015 IR Presentation – Advanced Energy – slide 7
    Precision Power Solutions Enable Mobile Technology EMI Coatings Camera Optics Coating AMOLED or TFT Display HBLED Light Glass Coating Logic: Processor Capacitive Touchscreen Memory: NAND & DRAM Thin Film Battery MEMS…
  8. Summer 2015 IR Presentation – Advanced Energy – slide 8
    Precision Power Conversion Applications INDUCTION HEATING HIGH TAM: 1.0B CUSTOM HV TAM: POWER 1.5B TAM: 2.0B MED SEMI TAM: 0.5B MOTION CONTROL & POWER INDUSTRIAL TAM: 1.4B TAM: 0.4B INCREASING GROWTH INCREASING…
  9. Summer 2015 IR Presentation – Advanced Energy – slide 9
    Revenue Outpaced Growth of CAGR 2012-2014 Major Served Applications AE Precision Power Semi WFE 18%1 3.3%2 120.0 Power/Reactive Gas 12.4%3 Quarterly Revenue (in millions) 100.0 80.0 60.0 40.0 20.0 0.0 Q1…
  10. Summer 2015 IR Presentation – Advanced Energy – slide 10
    Applications Leadership Applications Leader Why We Win 1 in RF/DC Subsystems* Leading product performance 1 Matching networks Highest product quality Localized R&D Operations speed, response Global support in key regions…
  11. Summer 2015 IR Presentation – Advanced Energy – slide 11
    Expanded Served Applications With New Acquisitions PCM, from AEG Power Solutions 2.5B TAM 2 in PCM in heating/furnace applications Heavy Industry Industrial Coatings Aerospace HiTek Power & Defense THIN FILM 1 position in HV for…
  12. Summer 2015 IR Presentation – Advanced Energy – slide 12
    Increased Product Development Speed and Efficiency Revamped product development process (PDP) Localized and distributed R&D Shenzhen engineering for fast NPI Net impact: Faster solutions to our customers Reduced product development…
  13. Summer 2015 IR Presentation – Advanced Energy – slide 13
    Growth Strategy in Semiconductor Extend leadership in growth applications Capitalize on AEs advanced RF pulsing solutions for Etch Expand AEs 2MHz RF systems into Etch/PVD Create new process sources for etch/deposition/PEALD…
  14. Summer 2015 IR Presentation – Advanced Energy – slide 14
    Growth Strategy in Thin Films Industrial APPLICATIONS STRATEGY Energy Efficiency Drive fast adoption of advanced bipolar technology Superior film performance Superior cost of ownership Display Technologies Retrofit large installed…
  15. Summer 2015 IR Presentation – Advanced Energy – slide 15
    Expanding into New Applications: Heavy Industry Expand PCM presence through global distribution channels Partner with Industrial Automation leaders in US, Europe, and Asia Develop custom integrated power control solutions in India and…
  16. Summer 2015 IR Presentation – Advanced Energy – slide 16
    Expanding and Diversifying Target Applications ELECTROPHORESIS MASS SPECTROMETER CAT SCAN ANALYTICAL INSTRUMENTS DNA SEQUENCER LASER SCALPEL MEDICAL SEMICONDUCTOR 1.5B High Voltage TAM SEMICONDUCTOR TOOLS Diversified…
  17. Summer 2015 IR Presentation – Advanced Energy – slide 17
    Strategic Decision to Wind Down Inverters 6-month rigorous process evaluating various strategic options Decision to focus on Precision Power business Aligns with long-term goal to maximize shareholder value Key Highlights Wind down…
  18. Summer 2015 IR Presentation – Advanced Energy – slide 18
    Going Forward: Non-GAAP Results Excluding Inverters ( in Millions, except GM%) Q214 Q215 Q315E Revenues 81.8 104.6 102-110 Operating income 15.4 26.8 25-30 Operating margin % 18.9% 25.6% 24-27% Tax rate 15% *Operating…
  19. Summer 2015 IR Presentation – Advanced Energy – slide 19
    Cash Provided By Operating Activities 45.0 40.0 35.0 30.0 25.0 Millions 20.0 15.0 10.0 5.0 0.0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 20
  20. Summer 2015 IR Presentation – Advanced Energy – slide 20
    Cash Deployment Options Acquired 3 companies / product lines in 2014 M&A Strategic acquisitions complementary Accretive within months - synergistic Core R&D in precision power technology ORGANIC GROWTH Distributed R&D New…
  21. Summer 2015 IR Presentation – Advanced Energy – slide 21
    Driving Profitability in Peaks & Troughs Grow & Diversify Revenue Base Generate & OUTPACE MARKET GROWTH Deploy Cash CASH GENERATION 250-320M EPS 2-3 Expand Margins Note: Please note that hypothetical scenarios regarding…
  22. Summer 2015 IR Presentation – Advanced Energy – slide 22
    THANK YOU 23

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