The management report of AIXTRON SE and the Group management report of the AIXTRON Group are combined according to Section 315 Para. 5 HGB in conjunction with Section 298 Para. 2 HGB. The report is published in the Federal Gazette.
The annual financial statements of AIXTRON SE have been prepared in accordance with the German Commercial Code (HGB) and the German Stock Corporation Act (AktG). The individual financial statements generally serve to determine the balance sheet profit and thus the possible distribution amount.
The combined management report comprises all legally required information regarding AIXTRON SE. In addition to the reporting on the AIXTRON Group we explain the development of AIXTRON SE.
AIXTRON SE is the parent company of the AIXTRON Group and has its headquarters in Herzogenrath, Germany. The AIXTRON SE Management is responsible for key management functions for the Group, such as corporate strategy, risk management, investment management, executive and financial management, and communication with key target groups of the Group. AIXTRON SE generates the majority of its consolidated revenues through its operating activities of the development, production, sale and maintenance of equipment for the deposition of semiconductor materials. In addition to eight directly or indirectly wholly owned subsidiaries, which are primarily responsible for the worldwide distribution of AIXTRON's products, AIXTRON SE currently holds an 87% interest in the APEVA Group. AIXTRON SE is not managed separately using its own performance indicators because the Company is integrated into the Group management. We refer here to the respective explanations provided for the Group. The economic framework conditions of AIXTRON SE are essentially the same as those of the AIXTRON Group and are described in detail in the chapter “Report on Economic Position”.
AIXTRON SE’s revenues amounted to EUR 432.1 million in fiscal year 2022 and thus increased by EUR 35.9 million, or 9%, compared with the previous year (2021: EUR 396.2 million). Revenues were influenced by continued high demand for MOCVD systems in the fields of GaN- and SiC-power electronics, wireless and optical data communication as well as LED applications. The other revenues are attributable to intra-group charges.
At 69%, demand from customers based in Asia still accounted for the largest share of total revenues in 2022.
At EUR 84.6 million (2021: EUR 89.7 million), the net result for the year was slightly lower than in the previous year. The following factors contributed to this development:
At 50%, the cost of materials ratio (cost of materials in relation to total output) was unchanged (2021: 50 %).
The annual average number of employees at AIXTRON SE rose from 477 in the previous year to 542 in the fiscal year 2022. As result of the increased number of employees and variable remuneration components, personnel expenses increased from EUR 52.7 million in the previous year to EUR 65.3 million in fiscal year 2022.
Despite the increase in capital expenditures, depreciation and amortization decreased by EUR 1.1 million from EUR 7.6 million in 2021 to EUR 6.5 million in 2022. This is mainly due to the fact that significant investments are recorded as assets under construction and therefore no depreciation is incurred yet.
Other operating expenses were higher at EUR 88.6 million compared to EUR 61.0 million in fiscal year 2021. The main drivers were higher variable expenses for shipped systems. losses from currency translation and increased development costs.
In comparison to 2021, other operating income increased from EUR 12.9 million to EUR 15.2 million in the 2022 fiscal year. This is mainly due to income from foreign currency translation and exchange rate gains.
In addition, a result from investments of EUR 5.3 million (2021: EUR 4.3 million) was generated in fiscal year 2022. The result from investments in the fiscal year consists exclusively of dividend payments from subsidiaries. The previous year´s result includes dividend income from subsidiaries in the amount of EUR 8.3 million as well as an impairment loss on the investment in APEVA Holdings Ltd. in the amount of EUR 4.0 million.
Net interest income totaled EUR -1.0 million in fiscal year 2022 compared to EUR -0.9 million in 2021. This is mainly attributable to expenses from the fair value accounting of fund investments.
The net result of AIXTRON SE amounted to EUR 84.6 million. An amount of EUR 42.3 million was transferred to retained earnings. Combined with the carried forward profit from the previous year in the amount of EUR 50.9 million and the dividend payment in May 2022 in the amount of EUR 33.7 million, this results in a new accumulated profit of EUR 59.5 million as of December 31, 2022 (December 31, 2021: EUR 50.9 million). The Executive Board and Supervisory Board will propose to the Annual General Meeting that a dividend of EUR 0.31 per dividend-entitled share (2021: EUR 0.30) be paid for 2022.
At EUR 757.8 million, total assets at AIXTRON SE at the end of 2022 were about 23% higher than the previous year’s figure (2021: EUR 615.6 million). This was due in particular to advance payments received from customers and the positive net result for the year.
Property, plant and equipment increased from EUR 63.8 million in 2021 to EUR 85.7 million in fiscal year 2022 due to increased capital expenditures, mainly for laboratory plant and equipment.
Financial assets increased to EUR 46.9 million (2021: EUR 46.4 million) due to the opening of a new subsidiary in Malaysia.
The increase in inventories from EUR 104.7 million as of December 31, 2021 to EUR 204.7 million as of December 31, 2022 mainly reflects the high expected sale of systems in the following quarters and the high order backlog.
Trade receivables increased from EUR 66.1 million to EUR 83.6 million due to a high number of deliveries at the end of the 2022 fiscal year.
The subscribed capital of AIXTRON SE was at EUR 113.3 million as of December 31, 2022 (December 31, 2021: EUR 113.3 million). Issued capital was EUR 112.4 million (2021: EUR 112.2 million). A total of 56,400 shares were issued as part of stock option programs in the fiscal year 2022.
As a result of the exercise of the stock options as well as the recognition of share-based payments expenses, the capital reserve increased from EUR 280.8 million as of December 31, 2021, to EUR 287.0 million as of December 31, 2022. Due to the higher balance sheet total, the equity ratio decreased to 72% in the fiscal year compared to 79% in the previous year, despite the increased total equity.
To secure prepayments received on orders, AIXTRON SE had guarantee facilities of EUR 97.5 million as of December 31, 2022 (2021: EUR 57.5 million), of which EUR 47.3 million had been utilized as of the balance sheet date (2021: EUR 23.9 million).
Trade payables increased to EUR 29.1 million due to reporting date factors and a higher procurement volume (2021: EUR 12.9 million).
As of December 31, 2022, AIXTRON did not have any bank borrowings, as was the case on the prior-year balance sheet dates.
Along with AIXTRON’s growth, capital expenditures in property, plant, equipment, other intangible assets and financial assets at AIXTRON SE totaled EUR 30.0 million in fiscal year 2022 (2021: EUR 12.2 million).
Thereof EUR 27.2 million in 2022 were for property, plant and equipment (2021: EUR 10.9 million). As in the previous year, this capital expenditure was mainly for laboratory equipment, test and demonstration equipment and expansion of production areas.
Furthermore, AIXTRON SE invested EUR 2.3 million in intangible assets for licenses and software (2021: EUR 1.1 million).
Investments of EUR 0.5 million (2021: EUR 0.3 million) were made in financial assets in fiscal year 2022. These related to the foundation of a new subsidiary.
Cash and cash equivalents decreased by EUR 102.0 million from EUR 167.7 million to EUR 65.7 million in the fiscal year, mainly due to cash and cash equivalents being invested in fund assets. Adjusted for this effect, liquidity would have decreased by EUR 23.3 million.
Cash flow from operating activities decreased from EUR 61.3 million in 2021 to EUR 34.1 million in the fiscal year 2022 mainly as a result of the the high level of receivables and increased inventories as of the reporting date, which has not yet been fully reflected in cash flow.
Cash flow from investing activities amounted to EUR -104.4 million in fiscal year 2022 (2021: EUR -86.5 million) mainly due to additional investments in fund assets of EUR -78.7 million (2021: EUR -79.2 million) and in property, plant and equipment of EUR 13.7 million.
Cash flow from financing activities amounted to EUR -31.7 million in fiscal year 2022 (2021: EUR -7.9 million). The main driver of this development was the dividend payment of EUR -31.7 million (2021: EUR -12.3 million).
There are no restrictions on access to the Company's cash and cash equivalents.
The business development of AIXTRON SE is subject to substantially the same risks and opportunities as the AIXTRON Group. AIXTRON SE generally participates in the risks of its subsidiaries in proportion to its respective ownership interest. As a result of the centralized financial management of the AIXTRON Group, all financing transactions are conducted through AIXTRON SE. As the parent company of the AIXTRON Group, AIXTRON SE is integrated into the Group-wide risk management system. For further information, please refer to the Opportunities and Risks Report.
The outlook for the AIXTRON Group largely reflects the expectations of AIXTRON SE. The earnings development of AIXTRON SE should continue to be in line with that of the Group in the future, as the results of the subsidiaries are reflected in the income from investments of the Group’s parent company. Management by means of performance indicators is carried out exclusively at Group level. The comments on the expected results of operations and financial position therefore also apply to AIXTRON SE (see in the following section “Expected Developments”).
Alan Tai
Taiwan/Singapore
Christof Sommerhalter
USA
Christian Geng
Europe
Hisatoshi Hagiwara
Japan
Nam Kyu Lee
South Korea
Wei (William) Song
China
AIXTRON SE (Headquarters)
AIXTRON 24/7 Technical Support Line
AIXTRON Europe
AIXTRON Ltd (UK)
AIXTRON K.K. (Japan)
AIXTRON Korea Co., Ltd.
AIXTRON Taiwan Co., Ltd. (Main Office)
AIXTRON Inc. (USA)
Laura Preinich
Recruiter
Tom Lankes
Talent Acquisition Expert- Ausbildungsleitung
Christoph Pütz
Senior Manager ESG & Sustainability
Christian Ludwig
Vice President
Carsten Werle
Director Investor Relations (Interim)
Ragah Dorenkamp
Director Corporate Communications
Prof. Dr. Michael Heuken
Vice President Advanced Technologies