2018 earnings - riber · 2019-04-17 · riber –2018 full-year earnings –april 2019 4 essential...

2018 earnings

April 2019

RIBER – 2018 full-year earnings – April 2019 2

Agenda

1. PROFILE

2. VALUE PROPOSITIONS

3. 2018 FULL-YEAR EARNINGS

4. STRATEGY AND OUTLOOK

5. WHY INVEST IN RIBER?


RIBER, a global market leader

for semiconductor industry equipment

Specialist in MBE machines and evaporators

for manufacturing semiconductors

Recognized technological leader

Numerous key innovations in MBE

Partnerships with universities and industrial firms:

development of new applications

Global presence

Europe, Americas (USA, Canada, Mexico), Southeast

Asia (Japan, China, South Korea, etc.)

Largest total installed base of MBE machines in

operation

Efficient industrial facilities

3,500 sq.m plant in Bezons (France), with a 1,000

sq.m clean room, capacity 25 MBE /year

Design and assembly of machines & components

Parts outsourcing and procurement

40 years of experience

More than 730 machines

installed in operation

More than 50% MBE

market share

More than 90% of revenues

generated abroad

110 employees at end-2018


Essential high-tech equipment…

epitaxyUltrahigh vacuum process to grow a

material or crystal in successive layers of

atoms

+

molecular beamProduction of a beam of molecules from a

source material to create ultra-thin films,

up to 1 atom thick

=

A technology

that offers the best quality for

semiconductor alloys

What is MBE?


…for today applications and the development of

tomorrow’s ones

Terrestrial telecommunications (5G, 4G, wifi)

Satellites (transmitting-receiving antennae)

Smartphones, tablets, etc.

Terrestrial (FTTH, LAN) and submarine (long-haul) fiber optic networks

Laser cutting

Laser passivation

LIDAR

Night vision

Magnetism

Hall effect: contactors

Infrared, UV (thermography, medical, vegetation mapping)

CIGS alloy photovoltaic cells: electrical energy production

OLED TV, tablet and smartphone screens

OLED lighting and signals

Main industrial field of application


Global base of leading clients

Thin film deposition

manufacturers (evaporators)

9 customers in 4 countries

Universities or research centers

covering semiconductors and/or

electronics (MBE)

320 customers

in 38 countries

Around 620

MBE

machines in

operation

Around 110

MBE

machines in

operation

Over 1,000

evaporators in

operation

Researc

hP

rod

ucti

on

Electronic component

manufacturers (MBE)

42 customers

in 10 countries


Strengthened global presence with the opening

of a fully-owned subsidiary in China in 2018

32%

35%

36%

Production site

Sales subsidiaries and services

Agents

Breakdown of 2018 revenues by region

Breakdown of Riber’s installed MBE machines

43%

49%

8%

Asia

Europe

North America

€31.3m


Contents

1. PROFILE






Research laboratories : MBE

Client needs

Growth of semiconductor alloy crystals with MBE:

AsGa, InP, GaN, InSb, ZnSe, CMT, oxides, metals

Acquisition of an MBE machine: technical specifications and

process (types of alloys)

Riber’s solutions

Market's widest range of solutions for processes (types of

alloys) and numbers of sources

Compact12, Compact21T, Compact21DZ, Compact21EB,

MBE412, MPVD300

Stable market

Estimated at 10-15 purchases / year

Competitors: Veeco (USA), Omicron (DE), MBE Komponenten

(DE), DCA (FN), Eiko (JP)

Riber's market share in 2018: 65%

Riber’s distribution

Global : 38 countries

Subsidiaries (USA, KR, CN),

distributors (JP) or agents

(other)


Industrial company : MBE

Client needs

Manufacturing of semiconductor alloy epitaxy wafers with MBE:

AsGa, InP, ZnSe, CMT, etc.

Acquisition of MBE machines for mass production of

components based on specifications: wafer, production output,

yield, cost of ownership, services and maintenance

Riber’s solutions

Market's largest range for treatment capacity and processes

Cyclical market

Estimated at 3 -6 purchases / year, depending on investment

cycles

Competitors: Veeco (USA)

Riber's market share in 2018: > 90%


Global :10 countries

Subsidiaries (USA, KR, CN),


(other)

Microwaves and

Optoelectronics

Optoelectronics

and sensorsLaser passivation

MBE6000 (4x6’’)

MBE8000 (8x6’’)MBE49 (4x4’’) MBE412 P


Industrial company : Evaporators

Client needsManufacturing of machines for depositing thin films of chemical

elements

Acquisition of industrial evaporators for large areas (x sq.m)

adapted for their machine : deposit specifications, production

output, yield, cost of ownership, services and maintenance

Riber’s solutionsPoint evaporators - defined by the evaporation time: SH100,

SH500

Linear evaporators - defined by the width of substrate plates:

JETSE, JETX

Growing marketEstimated at several thousand point evaporators / year,

depending on investment cycles in OLED, and penetration of

new applications

Competitors: 2 Asian companies

Riber's market share in 2018: around 10%


Europe, Asia

Subsidiaries (KR, CN),


(other)


Installed base : services and accessories

Client needs

Technical and scientific support

Improvement of performance levels (components) and

ergonomics (automation and software)

Fitting of new components or replacement of obsolete

components

Preventative or remedial maintenance operations

Riber’s solutionsCatalogue of spare parts, accessories and sources

Retrofit sales and on-site upgrades

In-factory component repairs

Preventative or remedial operations at client sites

Captive and recurrent market

Around €8-10M / year


Europe, Asia

Subsidiaries (KR, CN),


(other)


Contents

1. PROFILE






Change in revenues since 2015

2015 2016 2017 2018

Systems Services and accessories Evaporators

14

12.8

16.5

30.6

(€m)

31.3


2018 revenues slightly up

Strong growth in revenues of MBE

systems: + 33%

Delivery of 6 systems, including 3

production systems compared with 5

systems, including 2 production systems

in 2017.

Delivery offset of 2 systems in the first

half of 2019.

Growth in revenues for services and

accessories, supported by the

demand of industrial customers.

Evaporators revenues at a good

level.

0.93.7

2.8

2.6

8.810.4

2017 2018

(€m)

Systems Services and accessories Evaporators

31.330.6

+2%


2018 income impacted by non-recurring items

(€m - IFRS) 2018 2017

Revenues 31.3 30.6 +€0.7m

Gross margin% of revenues

11.135.6 %

13.644.5 %

-€2.5m

Sales

Research and developmentOf which gross expenditure

Of which other items (RTC, IFRS capitalization…)

Administration

(3.8)

(3.0)(2.5)

(0.5)

(4.2)

(4.3)

(2.5)(2.4)

(0.1)

(2.2)

Income from ordinary operations% of revenues

0.10.4 %

4.615.2 %

-€4.5m

Operating income% of revenues

0.00.0 %

3.812.4 %

-€3.8m

Net income% of revenues

0.31.0 %

4.113.4 %

-€3.8m

• Additional costs related to the development

of 2 prototype production systems delivered

in 2018

• Non-recurring guarantee expenditure

(€0.6m).

• Impact free share attribution plan

(€1.1m)

• Impact provision for research tax credit

(€0.4m)

Total non-recurring items

€2.1m


(€m) 2018 2017

Income from ordinary operations - published 0.1 4.6

Restatement of non-recurring items:

Provision for guarantee expenditure 0.6

Provision for rectification of research tax credit on previous years 0.4

Free share attribution plan 1.1

Income from ordinary operations - restated% of revenues

2.27.1 %

4.615.2 %

Net income - restated% of revenues

2.47.7 %

4.113.4 %

Restated income more normative


Balance sheet at December 31, 2018

Fixed assets

Deferred tax assets

Inventories

Cash and cash equivalents

Work-in-progress

Trade receivables

Other assets

Financial assets

Shareholders' equity

Non-current provisions

Trade payables

Other operating liabilities

Client advances

Assets Liabilities

(€m]

37,7

3

1,2

8,8

6,8

8,5

1,8

2

5,8

5,9

7,5

3,9

1,3

19,2


7,4

2,5

+2,7

-4,8

-2,8+1,5

+0,8 -0,2-0,4

-1,6

Opening cashposition

Cash flow fromoperations

Inventories Tradereceivables

Advances andother receivables

Trade payables Taxes paid Net investments Financing Closing cashposition

Change in the cash position at December 31, 2018

(€m) Change in working capital requirements: - 5,3


Distribution proposed to the shareholders' meeting

Cash distribution, taken from the issue premium,

First payment of €0.03 per share early July

Payment of the balance early September

20

Distribution per share €0.05

Share price at April 1st, 2019 €1.70

Yield 2.9%


Contents

1. PROFILE






Strategic areas for development

RESEARCH

LABORATORIESINDUSTRIAL FIRMS

SERVICES AND

ACCESSORIES

Maintain the market share

target > 60%

Further strengthen

competitive advantages

Continue innovating:

Dream MBE

Develop new processes

through partnerships with

laboratories

Production MBE: prepare the

new markets through R&D

partnerships and

demonstrators supply

Industrial evaporators:

development of a next-

generation linear evaporator

for future applications

Sales and marketing actions:

expand the client portfolio

and applications

Increase revenues by 35%

within 3 years

Provide a significant

recurring contribution to

consolidated revenues

Marketing investments:

identify new attractive

products through

innovation

Commercial investments:

increase the coverage of

our clients

Development supported by the customer satisfaction and operational excellence


Outlook for 2019

Excellent 2019 visibility

Expanded order book at the end of December

2018, up 16%

New orders since the beginning of the fiscal

year

Revenue growth

Positive trend for MBE systems sales and

high-potential projects under negotiation

Development of customer service and

accessories sales

Slowdown in evaporators sales

Improvement in profitability compared to

2018

12,2

22,3

8,7

6,8

4,9

0,8

2017 2018

Order bookat December 31

(€m)

29,9

25,8

SystemsServices and

accessoriesEvaporators


New markets R&D program for long-term growth

Applications 2019 2020 2021 2022 2023

LIDAR

Laser remote sensing:

autonomous vehicles

and new forms of

mobility... Prototyping Evaluation Qualification Mass

production

VCSEL

Photo detectors for

data com,

smartphone, COO, 3D

capture, etc.

Technology integration

Mass

production

UV LED - MICROLED

Water purification,

biomedicine, AlN/Si

wafer, etc.

Qualification Mass

production

R&D partnerships

Evaluation

Equipment & Technology dlvpt

Examples of new industrial markets

Evaluation


Contents

1. PROFILE






Why invest in RIBER?

Recognized leadership

High level of technological requirements:

barrier to entry

Solid foundations for growth

The information technology end-markets

Positive growth momentum

Strong opportunities in the short and medium

term

Increased value creation potential with new

industrial applications

Agile and very responsive organization

Strongly international dimension

Ambition: enhance the strategic fields for

Riber’s solutions for the semiconductor

industry


RIBER on the stock market

Listing market:

Euronext Paris since 2000

Indexes:

CAC Small, CAC Technology,

CAC T. HARD. & EQ.

ISIN: FR0000075954

Ticker: RIB

Bpifrance approval:

FCPI French innovation

mutual fund status

Share price:

€1.70 (at April 1st, 2019)

Market capitalization:

€36m (at April 1st, 2019)

Float

56.57%

ISA Finances, Socodol,

Mr and Mrs Raboutet

20.75%

Ormylia SAS and

Jacques Kielwasser

22.68%

Shareholders structureat December 31, 2018

Questions and answers

2018 earnings - riber · 2019-04-17 · riber –2018 full-year earnings –april 2019 4 essential...

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