AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

AIXTRON SE

Quarterly Report Oct 24, 2019

20_10-q_2019-10-24_dae0c737-e1e2-4595-974c-331f39d840a9.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

We are shaping the future. With innovation and precision.

AIXTRON GROUP

FINANCIALS AT A GLANCE

Key Quarterly Financials

In EUR million 2019
9M
2018
9M
+/- 2019
Q3
2019
Q2
+/-
Order Intake 150.6 230.3 -35% 52.2 44.7 17%
Order backlog
(Equipment only)
108.4 151.9 -29% 108.4 110.1 -2%
Revenues 184.6 180.9 2% 52.6 63.3 -17%
Gross profit 74.7 78.2 -4% 22.1 25.9 -15%
% 40% 43% -3 pp 42% 41% 1 pp
EBIT 24.5 20.7 18% 5.5 9.3 -41%
% 13% 11% 2 pp 10% 15% -5 pp
Net result 20.2 27.7 -27% 4.4 7.3 -40%
% 11% 15% -4 pp 8% 12% -4 pp
Free cash flow -2.7 -1.4 -93% 2.3 12.6 -82%

Key Balance Sheet Data

In EUR million September 30 2019 December 31 2018
Inventories 87.9 73.5
Trade receivables 33.2 40.1
Cash, cash equivalents and cash deposits 260.6 263.7
Trade payables 14.0 27.8
Contract liabilities for advance payments 44.4 53.3
Total equity 451.0 429.6
Equity ratio 84% 80%

Key Share Data

In EUR 2019
9M
2018
9M
Closing Price (end of period) 9.36 8.60
Period High Price 10.67 19.27
Period Low Price 7.43 8.60
Number of shares issued (end of period) 112,927,320 112,924,730
Market capitalization (end of period), million EUR 1,057.5 971.2
Net result per share (EUR) 0.18 0.25

AIXTRON QUARTERLY GROUP STATEMENT Q3/2019

TABLE OF CONTENTS

FINANCIALS AT A GLANCE 2
BUSINESS DEVELOPMENT 4
INTERIM MANAGEMENT REPORT 6
Business Activity and Strategy 6
Results of Operations 6
Development of Orders 6
Exchange Rate Development of the US Dollar 6
Development of Revenues 7
Development of Results 8
Financial Position and Net Assets 9
Cash Flow 10
Opportunities and Risks 10
Outlook 11
INTERIM FINANCIAL STATEMENTS 12
Consolidated Income Statement (unaudited) 12
Consolidated Statement of other Comprehensive Income (unaudited) 12
Consolidated Statement of Financial Position (unaudited) 13
Consolidated Statement of Cash Flows (unaudited) 14
Consolidated Statement of Changes in Equity (unaudited) 15
ADDITIONAL DISCLOSURES 16
Accounting Policies 16
Segment Reporting 17
Stock Option Plans 17
Employees 18
Management 18
Related Party Transactions 19
Post-Balance Sheet Date Events 19
Forward-Looking Statements 20

BUSINESS DEVELOPMENT

Q3 Order Recovery / Full Year Guidance firmed up

As expected, we saw a slight recovery of orders during the third quarter of 2019 compared to the previous quarter. Revenues were affected by longer than expected processes to grant export licenses and were therefore below the revenue levels of the previous quarters. For the fourth quarter of 2019, an increase of orders and revenues is expected.

Order intake in the third quarter of EUR 52.2m was above the order intake of the previous quarter (Q2/2019: EUR 44.7m. The total equipment order backlog as of Sep. 30, 2019 amounted to EUR 108.4m (Sep. 30, 2018: 151.9m). The market developments of an increasing use of lasers for optical data transmission and 3D sensor technology, a progressive expansion of the 5G network and an increasing use of energy-efficient power electronics remain positive and are reflected in ongoing customer discussions.

Influenced by the previously mentioned timing effect on deliveries, Revenues in Q3/2019 were EUR 52.6m (Q2/2019: EUR 63.3m). Based on the 2019 full year revenue guidance, revenues in Q4/2019 are expected to be higher. Gross profit in Q3/2019 was EUR 22.1m with a gross margin of 42% (Q2/2019: EUR 25.9m; 41%).

Operating expenses in Q3/2019 of EUR 16.6m remained stable compared to the previous quarter (EUR 16.6m), resulting in an operating profit (EBIT) of EUR 5.5m with an EBIT margin of 10% (Q2/2019: EUR 9.3m; 15%) reflecting the revenue levels. Net income amounted to EUR 4.4m (Q2/2019: EUR 7.3m). Free cash flow in Q3/2019 was EUR 2.3m (Q2/2019: EUR 12.6m).

Based on customer agreed delivery schedules and ongoing customer discussions, the Executive Board firms up its guidance for the full year 2019 with revenues of around EUR 260 million (previously EUR 260 million to EUR 290 million) and order intake of around EUR 220 million (previously EUR 220 million to EUR 260 million). This forecast takes the longer than expected review processes for the granting of export licenses and the expectation of receiving a follow up OLED order no longer in the financial year 2019 into account. With a gross margin of around 40%, EBIT is expected to be around 13% of revenues and free cash flow for the full year to be around EUR 15 million (previously EUR 15 million to EUR 25 million).

Operation of the Gen 2 OLED system at the customer's site

Our Gen2 OLED system is being operated in a pilot production line at our customer's plant jointly by engineers from our customer and our subsidiary APEVA. Currently, the engineers are working intensively on the optimization of the tool and the process parameters for OLED manufacturing with the OVPD technology. This is intended to confirm the efficiency of the OVPD technology in the coming months and create the data required for the customer's decision to place a follow-up order for a further OVPD tool.

INTERIM MANAGEMENT REPORT

INTERIM MANAGEMENT REPORT

Business Activity and Strategy

A detailed overview of the business activities and strategy of the AIXTRON Group AIXTRON ("the AIXTRON Group" or "the Company") can be found in the Annual Report 2018. There were no changes in the first nine months of 2019. The Report is publicly available for download on the Company's website at http://www.aixtron.com/en/investors/publications.

Results of Operations

Development of Orders

Orders

(in EUR million)

2019
9M
2018
9M
+/-
mEUR %
Total order intake incl. spares & services 150.6 230.3 -79.7 -35
Equipment order backlog (end of period) 108.4 151.9 -43.5 -29

As a result of the reluctance of customers to invest in capacity expansion, 9M/2019 order intake was down by 35% to EUR 150.6m (9M/2018: EUR 230.3m) in a year-on-year comparison. In Q3/2019, order intake of EUR 52.2m was 17% ahead of the previous quarter (Q2/2019: EUR 44.7m).

Exchange Rate Development of the US Dollar

The average exchange rate used by AIXTRON to translate income and expenses denominated in US dollars in the first nine months of 2019 was 1.13 USD/EUR (Q1/2019: 1.14 USD/EUR; Q2/2019: 1.12 USD/EUR; Q3/2019: 1.12 USD/EUR), which compares to 1.20 USD/EUR in 9M/2018. Thus, compared to the same period of the previous year, the average US dollar strengthened by 6% in 9M/2019, increasing the Euro value of US dollar denominated revenues in this period.

Development of Revenues

Total revenues for the first nine months of 2019 amounted to EUR 184.6m and were EUR 3.7m higher compared to the same period last year (9M/2018: EUR 180.9m). This development is attributable to timing effects of shipments in particular during Q3/2019. Revenues in Q3/2019 of EUR 52.6m were below the revenues of the previous quarters partially due to longer than expected review processes for the granting of export licenses (Q2/2019: EUR 63.3m; Q3/2018: EUR 63.4m).

Equipment revenues in 9M/2019 were EUR 148.1m, representing 80% of the total 9M/2019 revenues, compared to EUR 145.4m in 9M/2018 (Q3/2019: EUR 41.6m or 79%; Q3/2018: EUR 52.5m or 83%; Q2/2019: EUR 50.3m or 79%).

The remaining revenues were generated from the sale of spare parts and services.

Revenues by Equipment, Spares & Service

(in EUR million)

2019
9M
2018
9M
+/-
m EUR % m EUR % m EUR %
Equipment revenues 148.1 80 145.4 80 2.7 2
Service, spare parts, etc. 36.5 20 35.5 20 1.0 3
Total 184.6 100 180.9 100 3.7 2

Revenues by Region

2019
9M
2018
9M
+/-
m EUR % m EUR % m EUR %
Asia 128.8 70 90.9 50 37.9 42
Europe 25.6 14 54.2 30 -28.6 -53
Americas 30.2 16 35.8 20 -5.6 -16
Total 184.6 100 180.9 100 3.7 2
2019
9M
2018
9M
+/-
m EUR % Rev. m EUR % Rev. m EUR % Rev.
Cost of sales 109.8 60 102.7 57 7.1 7
Gross Profit 74.7 40 78.2 43 -3.5 -4
Operating costs 50.2 27 57.6 32 -7.4 -13
Selling expenses 7.1 4 6.7 4 0.4 6
General and administration expenses 12.4 7 13.3 7 -0.9 -7
Research and development costs 40.0 22 40.0 22 0.0 0
Net other operating (income)
and Expenses
(9.4) -5 (2.5) -1 6.8 272

Development of Results

Cost Structure

Gross profit in Q3/2019 was EUR 22.1m with a 42% margin (Q3/2018: EUR 27.6m, 44%; Q2/2019: EUR 25.9m, 41%). In 9M/2019, gross profit was EUR 74.7m or 40% of revenues compared to EUR 78.2m or 43% of revenues in 9M/2018. This was mainly due to a more favorable product mix in the previous year. A favorable USD/EUR exchange rate had positive effects on dollar denominated revenues during Q3/2019.

Operating costs decreased by 13% year-on-year to EUR 50.2m in 9M/2019, which is attributable mainly to higher other operating income driven to a large degree by higher R&D grants received. In a quarterly sequential comparison, operating costs remained stable at EUR 16.6m due to higher R&D expenses offset by higher R&D grants received (Q2/2019: EUR 16.6m; Q3/2018: EUR 18.9m).

Research and development costs (including the development activities in the area of OLED and power) in 9M/2019 were stable year-on-year. Sequentially, R&D costs increased by 18% to EUR 14.7m (Q2/2019: EUR 12.5m) mainly due to our ongoing development activities in the above mentioned areas.

Key R&D Information

2019
9M
2018
9M
+/-
R&D expenses (million EUR) 40.0 40.0 -
R&D expenses, % of sales 22 22

Net other operating income and expenses in the first nine months of 2019 resulted in an income of EUR 9.4m (Q3/2019: EUR 4.7m; Q3/2018: EUR 0.9m income; Q2/2019: EUR 2.7m income). Such income is mainly attributable to R&D grants and exchange rate gains.

The 9M/2019 operating result (EBIT) increased from previous year's figure of EUR 20.7m to EUR 24.5m. This year-on-year development was mainly attributable to the above-mentioned business and cost development. Compared to the previous quarter, the operating result in Q3/2019 decreased to EUR 5.5m (Q2/2019: EUR 9.3m) mainly due lower revenue volumes.

The Company's net result amounted to EUR 20.2m in 9M/2019 (9M/2018: EUR 27.7m). In 9M/2018, the net result benefited from a EUR 9.0m credit as a result of a recognition of deferred tax assets. In Q3/2019, the net result amounted to EUR 4.4m (Q3/2018: EUR 11.7m; Q2/2019: EUR 7.3m).

Financial Position and Net Assets

The Company did not have any bank borrowings as of September 30, 2019 or December 31, 2018.

Total equity as of September 30, 2019 increased to EUR 451.0m compared to EUR 429.6m as of December 31, 2018 mainly due to the period's net profit. The equity ratio was 84% as of September 30, 2019 (80% as of December 31, 2018).

Cash and cash equivalents (including cash deposits with a maturity of more than three months) decreased to EUR 260.6m as of September 30, 2019 compared to EUR 263.7m as of December 31, 2018. Compared to June 30, 2019, cash and cash equivalents increased from EUR 258.9 million despite the increase in inventories.

Property, plant and equipment was EUR 64.8m as of September 30, 2019 (EUR 63.1m as of December 31, 2018). This figure includes EUR 3.9m from the capitalization of leased assets in accordance with IFRS 16.

Goodwill was EUR 72.2m as per September 30, 2019 compared to EUR 71.6m as per December 31, 2018. There were no impairments in the first nine months of 2019. The difference is attributable to exchange rate fluctuations.

Inventories, including raw materials, unfinished and finished goods, increased to EUR 87.9m as of September 30, 2019 from EUR 73.5m as of December 31, 2018, which mainly reflects the construction of prototypes, the procurement of items that could be affected by BREXIT and, in particular, the longer than expected processes to grant export licenses.

Trade receivables amounted to EUR 33.2m as of September 30, 2019, compared to EUR 40.1m as of December 31, 2018, which corresponds to a DSO of 44 days (December 31, 2018: 36 days). This mainly reflects the changed business volume.

Contract liabilities for advance payments amounted to EUR 44.4m as of September 30, 2019 compared to EUR 53.3m as of December 31, 2018 reflecting the current order situation.

Cash Flow

The free cash flow in 9M/2019 amounted to EUR -2.7m (9M/2018: EUR -1.4m). The negative free cash flow in 9M/2019 was mainly due to the increased working capital, including investment in beta tools, as well as the growth of inventories and reflects the current order situation. Free cash flow in Q3/2019 was EUR 2.3m and, thus, positive as in the previous quarter (Q2/2019: EUR 12.6m).

Opportunities and Risks

During the first nine months of 2019, AIXTRON Management was not aware of any further significant additions or changes in the Opportunities and Risks as described in the 2018 Annual Report.

A description of the opportunities and risks of the AIXTRON Group can be found in the chapters "Risk Report" and "Opportunities Report" of the Annual Report 2018 which is publicly available for download on the Company's website athttps://www.aixtron.com/en/investors/publications.

Outlook

Based on the good results for the first nine months of 2019 and the assessment of the development of demand in the current market environment, AIXTRON Management firms up its forecast for 2019 orders, sales and free cash flow.

Accordingly, Management expects a stable revenue development compared to 2018. In the final quarter of the year, despite low visibility a further increase in demand is expected. Based on the 9M/2019 results, the present assessment of the order situation and the budget exchange rate of 1.20 USD/EUR, Management refines its forecast for 2019, now expecting to receive orders for the current financial year of around EUR 220 million (previously: EUR 220 million to EUR 260 million). With revenues of around EUR 260 million (previously: EUR 260 million to EUR 290 million), Management expects to achieve a gross margin of around 40% and an EBIT of around 13% of revenues in 2019. Furthermore, Management anticipates a free cash flow around EUR 15 million in 2019 (previously EUR 15 million to EUR 25 million). This forecast takes the longer than expected review processes for granting export licences as well as the expectation of a follow up OLED order no longer in the financial year 2019 into account. Expectations for 2019 fully include the results of AIXTRON's APEVA subsidiary, including all necessary investments to continue the development of OLED activities.

Developments in AIXTRON's markets are positive. In particular, the increasing use of lasers in optical data transmission and 3D sensor technology, the expansion of the 5G network and the increasing use of energy-efficient power electronics are expected to lead to further growth in the corresponding target markets.

Further details can be found in chapter "Expected Developments" of the Annual Report 2018, which is publicly available for download on the Company's website at https://www.aixtron.com/ en/investors/publications.

INTERIM FINANCIAL STATEMENTS

Consolidated Income Statement (unaudited)

in EUR thousands 9M 2019 9M 2018 +/-
Revenues 184,551 180,922 3,629
Cost of sales 109,830 102,683 7,147
Gross profit 74,721 78,239 -3,518
Selling expenses 7,121 6,716 405
General administration expenses 12,409 13,332 -923
Research and development costs 39,994 40,029 -35
Other operating income 9,807 4,297 5,510
Other operating expenses 455 1,783 -1,328
Operating expenses 50,172 57,563 -7,391
Operating result 24,549 20,676 3,873
Finance income 671 704 -33
Finance expense 72 4 68
Net finance income 599 700 -101
Profit before taxes 25,148 21,376 3,772
Taxes on income 4,905 -6,326 11,231
Profit for the period 20,243 27,702 -7,459
Attributable to:
Owners of AIXTRON SE 20,485 27,702 -7,217
Non-controlling interests -242 0 -242
Basic earnings per share (EUR) 0.18 0.25 -0.07
Diluted earnings per share (EUR) 0.18 0.25 -0.07

Consolidated Statement of other Comprehensive Income (unaudited)

in EUR thousands 9M/2019 9M/2018 +/-
Net profit for the period 20,243 27,702 -7,459
Currency translation 479 1,645 -1,166
Other comprehensive income/loss 479 1,645 -1,166
Total comprehensive income for the period 20,722 29,347 -8,625
Attributable to:
Owners of AIXTRON SE 20,957 29,347 -8,390
Non-controlling interests -235 0 -235

Consolidated Statement of Financial Position (unaudited)

in EUR thousands Sep 30, 2019 Dec 31, 2018
Assets
Property, plant and equipment 64,845 63,111
Goodwill 72,237 71,599
Other intangible assets 2,204 2,125
Other non-current assets 451 430
Deferred tax assets 12,097 12,832
Total non-current assets 151,834 150,097
Inventories 87,920 73,526
Trade receivables 33,188 40,137
Current tax receivables 287 905
Other current assets 6,245 10,489
Other financial assets 27,500 27,500
Cash and cash equivalents 233,087 236,207
Total current assets 388,227 388,764
Total assets 540,061 538,861
Liabilities and shareholders' equity
Share capital 111,840 111,840
Additional paid-in capital 375,061 374,413
Accumulated losses -41,609 -62,094
Currency translation reserve 4,898 4,426
Equity attributable to the owners of AIXTRON SE 450,190 428,585
Non-controlling interests 824 1,059
Total equity 451,014 429,644
Other non-current liabilities 2,714 347
Other non-current provisions 2,053 1,477
Total non-current liabilities 4,767 1,824
Trade payables 14,006 27,815
Contract liabilities for advance payments 44,363 53,314
Other current provisions 16,436 19,339
Other current liabilities 6,254 4,955
Current tax payables 3,221 1,970
Total current liabilities 84,280 107,393
Total liabilities 89,047 109,217
Total liabilities and shareholders' equity 540,061 538,861

Consolidated Statement of Cash Flows (unaudited)

in EUR thousands 9M/2019 9M/2018 +/-
Cash flow from operating activities
Net profit 20,243 27,702 -7,459
Reconciliation between profit and cash flow from
operating activities
Expense from share-based payments 647 1,214 -567
Depreciation, amortization and impairment expense 7,453 7,794 -341
Net result from disposal of property, plant and equipment 33 -344 377
Deferred income taxes 886 -8,813 9,699
Change in
Inventories -14,287 -28,332 14,045
Trade receivables 7,877 -15,774 23,651
Other assets 5,286 -1,009 6,295
Trade payables -14,492 2,564 -17,056
Provisions and other liabilities -608 -12,507 11,899
Non-current liabilities 2,890 -302 3,192
Contract liabilities for advance payments -9,389 33,199 -42,588
Cash flow from operating activities 6,539 5,392 1,147
Cash flow from investing activities
Capital expenditures in property, plant and equipment -8,423 -6,710 -1,713
Capital expenditures in intangible assets -839 -420 -419
Proceeds from disposal of fixed assets 53 344 -291
Bank deposits with a maturity of more than 90 days 0 5,000 -5,000
Cash flow from investing activities -9,209 -1,786 -7,423
Effect of changes in exchange rates on cash and -450 235 -685
cash equivalents
Net change in cash and cash equivalents
-3,120 3,841 -6,961
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
236,207
233,087
226,526
230,367
9,681
2,720
Interest paid 72 0 72
Interest received 487 425 62
Income taxes paid
Income taxes received
-2,523
324
-3,239
77
716
247

Consolidated Statement of Changes in Equity (unaudited)

in EUR thousands Subscribed
capital under
IFRS
Additional
paid-in capital
Currency
trans
lation
Retained
earnings/
Accumulated
deficit
Sharehol
ders' equity
attributable to
the owners of
AIXTRON SE
Non-controlling
interests
Total
equity
Balance January 1, 2018 111,802 372,912 1,481 -117,289 368,906 0 368,906
Share based payments 1,213 1,213 1,213
Issue of shares 35 -35 0 0
Net income for the year 27,702 27,702 27,702
Other comprehensive income 1,645 1,645 1,645
Total comprehensive profit
for the period
1,645 27,702 29,347 0 29,347
Balance Sept 30, 2018 111,837 374,090 3,126 -89,587 399,466 0 399,466
Balance January 1, 2019 111,840 374,413 4,426 -62,094 428,585 1,059 429,644
Share based payments 648 648 648
Net profit for the year 20,485 20,485 -242 20,243
Other comprehensive income 472 472 7 479
Total comprehensive profit
for the period
472 20,485 20,957 -235 20,722
Balance Sept 30, 2019 111,840 375,061 4,898 -41,609 450,190 824 451,014

ADDITIONAL DISCLOSURES

Accounting Policies

This consolidated interim financial report of AIXTRON SE has been prepared in accordance with International Financial Reporting Standards (IFRS) applicable for Interim Financial Reporting, IAS 34.

The accounting policies adopted in this interim financial report are consistent with those followed in the preparation of the Group's annual financial statements for the year ended December 31, 2018, with the exception that IFRS 16 has been adopted for the first time at the beginning of 2019. The principal effect of the adoption of IFRS 16 is to add kEUR 3,935 to Property Plant and Equipment with an equivalent addition of kEUR 2,849 to long term liabilities and kEUR 1,086 to short term liabilities.

The consolidated interim financial statements of AIXTRON SE include the following subsidiaries (collectively referred to as "AIXTRON", "the AIXTRON Group", "the Group" or "the Company"): APEVA SE, Herzogenrath (Germany), AIXTRON, Inc., Santa Clara (USA); AIXTRON Ltd., Cambridge (United Kingdom); AIXinno Ltd., Cambridge (United Kingdom); APEVA Holdings Ltd., Cambridge (United Kingdom); APEVA Co Ltd., Asan (South Korea); AIXTRON Korea Co. Ltd., Hwasung (South Korea); AIXTRON China Ltd., Shanghai (PR of China); AIXTRON KK, Tokyo ( Japan) and AIXTRON Taiwan Co. Ltd., Hsinchu (Taiwan).

Due to rounding, numbers presented throughout this report may not add up precisely to the totals indicated and percentages may not precisely reflect the absolute figures for the same reason.

Segment Reporting

Geographical Segments

(in EUR thousands)

Asia Europe Americas Group
Revenues realized with
third parties
9M/2019 128,818 25,577 30,156 184,551
9M/2018 90,866 54,246 35,810 180,922
Segment assets (property,
plant and equipment)
30.09.19 1,298 63,027 520 64,845
31.12.18 312 62,537 262 63,111

Stock Option Plans

As of September 30, 2019, AIXTRON's employees and Executive Board members held stock options, representing the right to receive AIXTRON common shares. The status of these options developed as follows:

AIXTRON ordinary shares

Expired/For
30.09.19 Exercised feited Allocation 31.12.18
Stock options 1,304,500 0 33,500 0 1,338,000

Employees

The total number of employees increased from 616 on September 30, 2018 to 686 persons on September 30, 2019.

Employees by Region

2019 2018 +/-
30.09. % 30.09. % abs. %
Asia 123 18 106 17 17 16
Europe 528 77 478 78 50 10
Americas 35 5 32 5 3 9
Total 686 100 616 100 70 11

Management

The end of the Annual General Meeting held on 15 May 2019 marked the end of the term of office of the Supervisory Board members, Kim Schindelhauer and Prof Dr. Wolfgang Blättchen. Dr. Martin Komischke retired from the Supervisory Board for personal reasons also with effect from the end of the day of the Annual General Meeting. After dedicating more than 20 years to the Supervisory Board, Prof. Dr. Blättchen no longer stood for re-election; Mr. Schindelhauer made himself available for a shortened 3-year tenure.

In addition to Mr. Schindelhauer, the Annual General Meeting appointed new members of the Supervisory Board of AIXTRON SE: Prof. Dr. Anna Gersbacher and Mr. Frits van Hout. Prof. Dr. Anna Gersbacher has a degree in business administration and is an auditor/tax advisor as well as Professor of General Business Administration at Heilbronn University/Germany. Mr. Frits van Hout is a physics graduate and a Board Member of ASML Holding N.V., Veldhoven/Netherlands.

There were no further changes in the composition of the Management and Supervisory Board compared with December 31, 2018 as of September 30, 2019.

Related Party Transactions

During the reporting period, AIXTRON did not initiate or conclude any material transactions with related parties, except for the appointment of the new members to the Supervisory Board.

Post-Balance Sheet Date Events

There were no known events after September 30, 2019 with a potentially significant effect on AIXTRON's results of operation or financial position at that date.

Forward-Looking Statements

This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of AIXTRON. These statements may be identified by words such as "may", "will", "expect", "anticipate", "contemplate", "intend", "plan", "believe", "continue" and "estimate" and variations of such words or similar expressions. These forward-looking statements are based on the current assessments, expectations and assumptions of the executive board of AIXTRON, of which many are beyond control of AIXTRON, based on information available at the date hereof and subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Should these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of AIXTRON may materially vary from those described explicitly or implicitly in the relevant forward-looking statement. This could result from a variety of factors, such as those discussed by AIXTRON in public reports and statements, including but not limited those reported in the chapter "Risk Report". AIXTRON undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, unless expressly required to do so by law.

Our registered trademarks: AIXACT®, AIXTRON®, APEVA®, Atomic Level SolutionS®, Close Coupled Showerhead®, CRIUS®, EXP®, EPISON®, Gas Foil Rotation®, Optacap™, OVPD®, Planetary Reactor®, PVPD®, STExS®, TriJet®.

This financial report should be read in conjunction with the interim financial statements and the additional disclosures included elsewhere in this report.

Contact for investors and analysts: [email protected] Contact for journalists: [email protected]

AIXTRON does not routinely print or mail its financial reports. These are available on the AIXTRON website under www.aixtron.com/en/investors/publications at any time.

AIXTRON SE | Dornkaulstr. 2 | 52134 Herzogenrath | Germany

Talk to a Data Expert

Have a question? We'll get back to you promptly.