Credit Suisse Equity Forum - November 17, 2022 Zurich, Switzerland - Comet Group
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Credit Suisse Equity Forum November 17, 2022 Zurich, Switzerland
Cautionary statement regarding Forward Looking
Statements
This document contains forward-looking statements about the Comet Group that may be subject to uncertainty and risk.
Readers should therefore be aware that such statements may deviate from actual future outcomes or events. Forward-
looking statements in this document are projections of possible future developments. All forward-looking statements are
made on the basis of data available to Comet at the time of preparation of this document. The Comet Group assumes no
obligation whatsoever to update or revise forward-looking statements in this document, whether as a result of new
information, future events or otherwise.
CS Equity Forum 2022 11/17/2022 2
Focus strategy is showing results
Strategic focus Boost program
Efficiency
1 company
2 core technologies Growth
Boost.
3 divisions
4 primary end markets
with a focus on
semi/electronics Culture
CS Equity Forum 2022 11/17/2022 3
Leading market positions in radio-frequency (RF) power
delivery and x-ray technology
Plasma-Control Technologies Industrial X-Ray Systems Industrial X-Ray Modules
#1 Top 3 #1
in vacuum capacitors in served markets in metal ceramic x-ray tubes
and matchboxes
59% 28% 13%
of Group sales FY21 of Group sales FY21 of Group sales FY21
CS Equity Forum 2022 11/17/2022 4
Global presence close to our customers
42% 15% 41%
of 2021
of 2021 group sales of 2021
group sales group sales
Taastrup (Den)
Aachen (Ger) Hamburg (Ger)
Montreal (Canada)
Flamatt (CH), HQ Suwon (KOR)
San José (USA) Beijing (CHN)
Shelton (USA)
Yokohama (JPN)
Shanghai (CHN)
Hsinchu (TWN)
Employees
>1500 Penang (MYI) Production
Locations worldwide
R&D
13 Sales & Service
Switzerland
HQ
CS Equity Forum 2022 11/17/2022 5
Well positioned to benefit from growth in our target markets
A vital role in the global semiconductor value chain:
total available market (TAM) of USD 2.0 bn
02 02 02
Radio-frequency Wafer fabrication Microchip Electronics
power subsystems equipment manufacturers manufacturers
Market size (2022e) Market size (2022e) Market size (2022e) Market size (2022e)
USD 2.1 bn USD 98 bn USD 618 bn USD 2,400 bn
Sources: Gartner, TechInsights
CS Equity Forum 2022 11/17/2022 7
Comet: a group that covers the semi / electronics value
chain from the front-end to the back-end
Semiconductor value chain
Front-end: Back-end:
Fabrication from a blank to a completed wafer Inspection of semiconductors and electronic components
Comet at the heart of
microchip production
Watch the video
RF power subsystems for X-ray systems and modules for quality control
wafer fabrication equipment of semiconductors and electronic components
CS Equity Forum 2022 11/17/2022 8
Structural long-term demand growth for microchips
remains unbroken with diversification of end markets
Worldwide semiconductor revenues estimated to exceed USD 1 trillion by 2030 • Semi demand fueled by data-
driven economy and AI
• Cyclical semi downturn pulled
> 1,000 forward from 2024 to 2023
Semiconductor revenues (in USD bn)
782 • Driver of downcycle: memory
618
• Logic/Foundry still expected to
grow
• Projected revenue growth 2023:
-3.6%, excl. memory at +1.1%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e 2023e 2024e 2025e 2026e 2030e
Sources: Gartner Semiconductor and Electronics
PC + Mobile Era Data Era Digitization of Everything Forecast Database, Worldwide, Q3/22 update;
Comet, Semi, TechInsights, McKinsey.
CS Equity Forum 2022 11/17/2022 9
Diminished influence of memory and consumer-driven
end markets compared with previous years
Semiconductor revenues 2022e by end market WFE spend by device type • Macro uncertainty weighs on
consumer electronics, smart
Automotive Electronics phones, PCs
PCs & Ultramobiles
Industrial & Military/
• Non-consumer segments:
Civil Aerospace 39% >50% of market
Consumer Electronics
Electronics 68% Logic/Foundry/
other
• Memory: lower share of total
market
Data Center • Logic/Foundry customers
61%
Memory: continue to invest
Smartphones 32% DRAM
Flash
Other • Comet:Leading semiconductor manufacturers’ aggressive
process roadmaps fueling growth forward
2022 2023 2024 2025 2022 2023 2024 2025 2022 2023 2024 2025
Denser design
libraries Angstrom era SF2
Increased
transistor drive Nanosheet
current
Reduced Via Intel GAA SF3 SF3P
resistance
NEXT FinFET
MBCFET 3GAP 3GAP+
Increased use Intel
Process Technology
of EUV
18A
EUVLitho Intel SF3E
20A 3GAE
Intel
3 Ribbon innovation
increased
SF4 SF4P SF4X SF4A
Intel performance
4LPP 4LPP+ 4HPC 4LPA
RibbonFET Continued metal
4 +PowerVia linewidth
reduction
FinFET SF5A
5LPE-A
• Switch from FINFET field-effect transistors • 3 nm process advancements through 2025 • FINFETs through 2025 for 4nm/5nm process
to Gate-all-around (GAAFETs) transistors using FINFETs advancements
for fractional nanometer Angstrom era • Switch to GAAFETs (Nanosheets) in 2025 for • Transition to GAAFETs for its 3nm process
2nm process technology technology
Sources: Intel, Samsung, TSMC data
CS Equity Forum 2022 11/17/2022 11Chip (device) complexity requires more plasma-based
equipment and RF power subsystems
RF Power Ratio to WFE • WFE spend forecasts yoy*:
2022: 9.1% / 2023: -13.5%
Shift from ~1.6% to ~2.0% BOM
2.5%
• Bill of materials for RF
2.0% subsystems per production unit
increasing:
1.5%
~1% of BOM − complexity chip architectures
1.0%
− smaller technology nodes
• RF Subsystem expected
0.5%
CAGR 2021 to 2025: 10.3%
0.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
RF Sub / WFE Oct 21 RF Gen / WFE Oct 21 RF Match / WFE Oct 21 BOM: bill of material
RF Sub / WFE Nov 2022 RF Gen / WFE Nov 22 RF Match / WFE Nov 22 * Average of 6 estimates for 2022 and 5 estimates for
2023 (Gartner, Semi, TechInsights, Lam Research, KLA,
Applied Materials (2022 only))
Sources: TechInsights, company data
CS Equity Forum 2022 11/17/2022 12Transition to electric vehicles opens attractive
entry point
Global light vehicles production forecast (million units and yoy growth) • CAGR 2021 to 2025e:
approx. 5%
Internal Combustion Engine Electric Vehicle + Plug-in Hybrid Electric Vehicle
100 • Accelerated transition
2.1%
towards EVs
4.9%
90
8.9%
• EV production share:
4.4%
80 3.5%
8.5% in 2021 to
-16.1% ~25% in 2025e
70
60
50
2020 2021 2022e 2023e 2024e 2025e
Sources: IHS Markit Sept 2022, Comet
CS Equity Forum 2022 11/17/2022 13Average semiconductor content per vehicle expected to
exceed USD 1,000 by 2026
Automotive industry: microchips revenues >USD 100bn by 2030 Opportunities:
160
1’441 • Significantly higher microchips
Semiconductor revenues automotive (in USD bn) 140 value in EVs
Average semiconductor content per vehicle (USD)
120
1’026 • Battery inspection with x-ray
931 100
827
712 738 80
665
135
502 60
432 99
88
80 40
72
61
53
43 41 20
0
2019 2020 2021 2022e 2023e 2024e 2025e 2026e 2030e
Source: Gartner Semiconductor Forecast Database, Worldwide, 2022 Update
CS Equity Forum 2022 11/17/2022 14Aerospace and security markets have embarked on a
solid recovery path
Global monthly air traffic revenue passenger kilometers • Air Traffic Volumes (ATV):
forecast to return to 2019 levels
by 2024
120%
• Forecast CAGR 2024 to 2030:
100%
5.3%
80% • Strong correlation between ATVs
and IXS/IXM sales into
60%
aerospace and security markets
40%
20%
0%
2019 2020 2021 2022e 2023e 2024e 2025e
Source: IATA, September 2022
CS Equity Forum 2022 11/17/2022 15TAM and SAM have further increased, semi and
electronics driving growth
6% 6%
2021 6% 2025 2%
7%
3% 5%
6%
1.5 x 7% USD TAM CMD 2021:
TAM
USD
7% 2020: USD 2.9 bn
3.4bn 69% 5.2bn 69% 2025: USD 4.5 bn
72%
74%
7% 5%
8%
1%
15% 3%
6%
2.8 x
2%
SAM
USD SAM CMD 2021:
USD 2020: USD 0.9 bn
4% 1.0bn 69% 69%
60% 2.9bn 2025: USD 2.5 bn
11%
78%
Semi/Electronics Automotive Aerospace Security SnM (incl. Medical) Other (e.g. Food, O&G)
CS Equity Forum 2022 11/17/2022 16Consistently pursuing our medium-term goals
Focus strategy confirmed
Growth ambitions based on a sound strategic framework
Further expand Contribute to our customers’ success &
semi focused Growth create value for all our stakeholders
product portfolio
Operating as a high-performing and
scalable organization
Further develop a
robust and lean
operating model
Efficiency Boost. Being the undisputed market and
technology leader for plasma-control
and x-ray inspection technologies
Recruiting, retention,
talent management, Culture Setting the pace with regards to
sustainability
leading-edge semi front-end and
back-end processes
CS Equity Forum 2022 11/17/2022 18Proximity to customer, production, R&D: expansion
laying the foundation for future growth
Expansion focus on fast growing Asian markets Preparing for further growth
2019 2020 2021 2022 2023+
Aachen Montreal, Suwon, Hsinchu, Yokohama, Penang, Flamatt, Shanghai, San Jose: consolidation of 4 sites
Germany Canada South Korea Taiwan Japan Malaysia Switzerland China
into 1 (2023), focus on new
Production of AI expertise Design center Demonstration/ Offering for Assembly of Expansion of Activities product introduction and pilot line
Synertia® through for Asian training center customers RF matches vacuum consolidated in
acquisition of customers for local expanded capacitor one site
ORS customers production
Location(s) to be evaluated:
Looking beyond 2025 to capture
additional growth in matchboxes
and vacuum capacitors
CS Equity Forum 2022 11/17/2022 19Penang: a crucial step towards our
2025 targets
Move of global high-volume matchbox assembly from San Jose to Penang
progressing, completed by mid-2023
San Jose Penang
high-volume
production
This stays in SJ: Major driver for 2025 targets
achievement
R&D: Innovation Center Lab One
Close to Asian growth markets
Close to major customers
Local supply chain installed
Consolidation of operations into one
buidling (early 2023) Serving customers globally
Favourable labor costs
Expansion opportunities
CS Equity Forum 2022 11/17/2022 20PCT: successful Synertia® launch
Simplified schematic view of Synertia® development
Synertia® RFG Products with different frequencies and
phase 1 power levels from low to medium
Synertia® RFG
phase 2 Products with higher power
Synertia® RFM Match specific development to enable
interlinked RF system
Beta site testing
Beta site testing completed
Market introduction
• Market for RF generators in 2025e: ~USD 1.7 bn, targeted market share by 2025: ~10%
• Product launch at Semicon West in July 2022
• Beta site tests with 8 potential customers underway
• First purchase orders received
• Marginal sales in FY22, ramp-up in FY23, significant revenues expected in FY24
CS Equity Forum 2022 11/17/2022 21IXS: portfolio transformation on track
• Progressed in strategy execution: number of hardware and software
platforms reduced to targeted level
• Enhance productivity at customers through integration of AI-based
visualization software well on track with first launches in 2022
• Focus on high-growth semiconductor and electronics markets on track
• Improvement in financial performance back-end loaded towards 2025 targets
CS Equity Forum 2022 11/17/2022 22IXM: grown market position in semi/
electronics, battery
• New products: 13% of Division sales in 2022e
• Market share grown in semi/electronics
• Sales/marketing activities in focus market Asia ramped up
• Strong entry into battery market based on MesoFocus platform
Comet CMD 2022 11/16/2022 23Summary and outlook
Challenges have intensified, multiple opportunities
remain
New products
Recruiting and markets
Retention
Financial
Trade flexibility
conflicts Challenges
Supply Long-term
chain favorable markets
Opportunities
Energy Mindset
costs / shortages change
Armed Regional semiconductor
conflicts manufacturing
CS Equity Forum 2022 11/17/2022 25CS Equity Forum 2022 11/17/2022 26
Financials
Continued focus on growth drivers, operating leverage
and capital deployment
OPERATING CAPITAL
GROWTH RESILIENCY ALLOCATION
LEVERAGE
• Industry growth drives • Committed to operational • Strengthened balance sheet • Strategic capital allocation to
demand for Comet’s excellence absorbs business cycle support growth initiatives
technologies • Focused investments in uncertainties • Committed annual dividend
• New products and R&D to drive our semi / • Asset light manufacturing in strategy
applications will open electronics product portfolio Penang, Malaysia allows for • Organic growth as a priority,
new addressable markets speed and flexibility smaller M&A (technology,
processes)
CS Equity Forum 2022 11/17/2022 28Progress towards 2025 target model
Net sales EBITDA margin Main drivers
in CHF millions in %
50 • Outperform market growth
200
830.0
X-ray 400 bps 25.0 • Higher process control intensity
21.0
20.0 • New product introductions
580.0 PCT
513.7 - Synertia® RFG + RFM
14.8
- MesoFocus
371.6 395.8
10.8
• Market realignment of
X-Ray systems & applications
2019 2020 2021 2022e* 2025e 2019 2020 2021 2022e* 2025e
CAGR(e) 2022 to 2025
CAGR 2019/2022e: CAGR 2022e/2025e: Incremental YoY margin expansion…well on track
16.0% ~13% • PCT division ~15%
• X-Ray divisions ~8%
* assumption: lower end of guidance 2022 achieved
CS Equity Forum 2022 11/17/2022 29Focused investments support organic growth
FY19 – FY21 Target 2025 Priorities
• Organic business growth
CHF 44 million ~5% of sales
Capex
~3.4% of sales on average
• Building lean / efficient
operations
CHF 157 million ~10 - 12% of sales • Driving scalable infrastructure
R&D on average
~12% of sales (digital business processes, IT)
investments
CS Equity Forum 2022 11/17/2022 30Returning cash to shareholders a key element of
Comet’s capital allocation
Dividend history Dividend policy
in CHF/share
• Shareholders to participate in
the success of Comet
• 25% to 40% of net income
3.5
• Yearly evaluation by Board of
Directors
• Other ways of returns to
1.5 shareholders constantly
1.3
1.1 1.1 1.2 1.2 evaluated, e.g., share buyback,
1.0
0.8
stock dividend
0.4 0.4
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 • Priority to keep financial flexibility
CS Equity Forum 2022 11/17/2022 31Long-term value creation over the last 10 years:
the next chapter in the Comet story is being written
Net sales EBITDA EPS
CAGR 3y* 5.6% CAGR 3y* 33.7% CAGR 3y* 76.1%
CAGR 5y* 9.1% CAGR 5y* 16.6% CAGR 5y* 19.7%
CAGR 10y* 9.0% CAGR 10y* 14.2% CAGR 10y* 20.7%
+XXX%
+905% All-time high: CHF 383.00 (November 9, 2021)
Current share price, 2022: CHF 197.00
Share
Shareprice
priceperformance since
performance JanJan
since 1, 2011
1, 2011 (as of November 11, 2022)
(as of(as
November 11, 2022)
of November11, 2022)
* 3y, 5y, 10y: FY18 to FY21, FY16 to FY21, FY11 to FY21
CS Equity Forum 2022 11/17/2022 32CS Equity Forum 2022 11/17/2022 33
Comet is on track to 2025 target model
> 830 ~ 25% ~ 30%
Net sales (million CHF) EBITDA margin (%) Return on capital
employed (%)
CS Equity Forum 2022 11/17/2022 34You can also read
