AIXTRON SE: Order Intake Guidance raised for 2017 / ALD/CVD Transaction approved by CFIUS / Net Profit in Q3/2017 / EBIT at Break-Even for 2017

Order Intake Guidance raised for 2017

ALD/CVD Transaction approved by CFIUS

Net Profit in Q3/2017 / EBIT at Break-Even for 2017

Herzogenrath/Germany, October 26, 2017 - AIXTRON SE (FSE: AIXA), a leading provider of deposition equipment to the semiconductor industry, today announced its financial results for the first nine months and the third quarter 2017.

Driven by continued demand for Metal Organic Chemical Vapor Deposition (MOCVD) systems for the production of VCSEL (Vertical-Cavity Surface-Emitting Laser) and other laser applications, ROY (Red-Orange-Yellow) and specialty LEDs as well as power electronics, order intake including spares and service in 9M/2017 came to EUR 197.9m, 17% higher than in the previous year (9M/2016: EUR 164.6m). Order intake in Q3/2017 increased to EUR 69.4m (Q2/2017: EUR 66.6m). Order intake in Q3/2017 and 9M/2017 included a non-recurring positive effect of EUR 4.9m from shipments made in prior years, but where payment had been regarded as unlikely (Q3/2017 adjusted: EUR 64.6m; 9M/2017 adjusted: EUR 193.0m).

The adjusted net result in Q3/2017 amounted to EUR 1.1m (Q3/2017 reported: 4.3m; Q2/2017: EUR -3.7m). Year-on-year the net result improved from EUR -30.4m in 9M/2016 to EUR -9.3m in 9M/2017 excluding non-recurring items totaling EUR 11.3m (9M/2017 reported: EUR -20.6m).

Total revenues for 9M/2017 increased to EUR 176.3m (9M/2016: EUR 106.6m) year-on-year while also improving sequentially in a quarterly comparison (Q3/2017: EUR 62.2m; Q2/2017: EUR 60.6m). Both, Q3/2017 and 9M/2017 revenues include non-recurring positive effects of EUR 4.6m from shipments made in prior years, but where payment had been regarded as unlikely (Q3/2017 adjusted: EUR 57.6m; 9M/2017 adjusted: EUR 171.7m).

As of September 30, 2017, equipment order backlog totaled EUR 99.2m, an increase of 6% on the figure of EUR 93.4m as of June 30, 2017 (September 30, 2016: EUR 104.0m).

Adjusted by non-recurring effects of EUR 2.2m, gross profit and gross margin in 9M/2017 improved to EUR 50.8m and 30% respectively against the previous year (9M/2016: EUR 26.9m; 25% gross margin). Excluding non-recurring items of EUR 4.6m, gross profit and gross margin also improved on a quarterly comparison (Q3/2017 adjusted: EUR 20.1m, 35% gross margin; Q2/2017 adjusted: EUR 16.0m, 26% gross margin) with the increased margin percentage being due to a more favorable product mix and despite an unfavorable US-Dollar/Euro exchange rate.

Free cash flow of positive EUR 48.5m in 9M/2017 was EUR 86.5m better than the previous year (9M/2016: EUR -38.0m).

Cash and cash equivalents (including cash deposits with a maturity of more than 90 days) increased to EUR 203.9m as of September 30, 2017, as against EUR 197.1m as of June 30, 2017. Compared to EUR 160.1m as of December 31, 2016, the difference of EUR 43.8m reflected the operational performance in combination with reduced and more efficient use of working capital.

Key Financials

*Operating CF + investing CF + changes in cash deposits, adjusted for acquisition effects
** Q3/2017 adjusted vs Q2/2016 adjusted

Cost of sales for 9M/2017 was EUR 123.3m year-on-year, equivalent to 70% of revenues (9M/2016: EUR 79.7m, or 75% of revenues). The improved cost of sales in percentage of revenues is mainly caused by higher sales volumes and the reduced influence of fixed costs. In Q3/2017, cost of sales improved to EUR 37.5m or 60% of revenues (Q2/2017: EUR 45.9m, 76%) which was mainly due to a more favorable product mix, the above mentioned non-recurring effect and was despite an unfavorable US-Dollar/Euro exchange rate.

Operating expenses in 9M/2017 were EUR 72.5m (9M/2016: EUR 56.2m) including restructuring expenses of EUR 13.6m. Sequentially, operating expenses adjusted by EUR 1.4m due to the ongoing restructuring activities fell to EUR 18.7m (Q2/2017 adjusted: EUR 19.6m).

The 9M/2017 EBIT adjusted by restructuring costs and other effects of EUR 11.3m was EUR -8.2m. Compared to the previous year, EBIT improved mainly due increased volumes and better margins. (9M/2016: EUR -29.3m). In Q3/2017, EBIT adjusted by EUR 3.2m improved to positive EUR 1.4m (Q3/2017 reported: EUR 4.6m; Q2/2017: EUR -3.6m, adjusted by EUR 7.7m).

Business Development

Continuing market demand for VCSEL and other laser applications, ROY and specialty LEDs as well as power electronics led to a stable order intake for MOCVD equipment in Q3/2017.

AIXTRON continued to reorganize the company and its product portfolio in order to return to profitability in 2018. The sale of the ALD/CVD product line to Eugene Technology (South Korea) received approval from the Committee of Foreign Investment in the United States (CFIUS) on October 23, 2017. Management expects the transaction to be closed in 2017.

APEVA SE, a 100% subsidiary of AIXTRON SE for its OLED deposition technology, officially started its business operations on October 1, 2017. AIXTRON continued discussions with potential industry and financing partners in order to form a Joint Venture with APEVA.

Management Review

Dr. Bernd Schulte, President of AIXTRON SE, comments: "Thanks to our broad product portfolio and the increased demand for MOCVD equipment for laser applications, we are pleased about the order development. Following the positive order intake development, we decided to raise our full-year guidance for order intake and to reiterate our revenue expectations for 2017. Based on our strong order backlog, we are optimistic we will return to profitability in 2018."

"In addition to the positive operating results in 9M/2017, we have made significant progress with the strategic reorganization of AIXTRON. Following the launch of business operations of APEVA SE on October 1, we have also obtained approval by U.S. authorities to sell our ALD/CVD business to Eugene Technology. With that we expect to be at EBIT break-even for 2017", comments Dr. Felix Grawert, President of AIXTRON SE.

Guidance

Following the 9M/2017 results and internal assessments and excluding orders and revenues from the ALD/CVD product line from the date of closing, AIXTRON increases the 2017 order guidance to EUR 240-250m (at the prevailing budget rate of EUR/USD 1.10) and refines the revenue guidance to EUR 220-230m (both from EUR 210-230m previously).

Due to the successful sale of the ALD/CVD memory product line to Eugene Technology which is expected to be closed during 2017, Management expects to achieve EBIT break-even for fiscal year 2017.

AIXTRON continues to execute restructuring measures as well as to seek the establishment of partnerships for its OLED business in order to return to profitability in 2018.

Financial Tables

The 9M/2017 results presentation is available at http://www.aixtron.com/en/investors/ir-presentation. The consolidated financial statements (income statement, statement of comprehensive income, balance sheet, cash flow statement, statement of changes in equity) relating to this press release are part of AIXTRON's quarterly group statement for the first nine months of 2017 and are available at http://www.aixtron.com/en/investors/financial-reports/.

Investor Conference Call

AIXTRON will host a financial analyst and investor conference call on Thursday, October 26, 2017, 3.00 p.m. CEST (6.00 a.m. PDT, 9.00 a.m. EDT) to review the 9M/2017 results. You can dial into the call at +49 (69) 247501-899 or +1 (212) 444-0297 from 2.45 a.m. CEST (5.45 p.m. PDT, 8.45 a.m. EDT). An audio replay or transcript will be available after the conference call at http://www.aixtron.com/en/investors/events/conference-call/.

Contact:

Guido Pickert
Investor Relations and Corporate Communications
T: +49 (2407) 9030-444
F: +49 (2407) 9030-445

Andrea Su
Investor Relations US
T: +1 (669) 228-3895
invest@aixtron.com

For further information on AIXTRON SE (FSE: AIXA, ISIN DE000A0WMPJ6) please consult our website at: www.aixtron.com.

Our registered trademarks: AIXACT^(R), AIXTRON^(R), Atomic Level SolutionS^(R), Close Coupled Showerhead^(R), CRIUS^(R), Gas Foil Rotation^(R), Optacap(TM), OVPD^(R), Planetary Reactor^(R), PVPD^TM, TriJet^(R)

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

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 our current assessments, expectations and assumptions, of which many are beyond control of AIXTRON, and are 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 actual customer orders received by AIXTRON, the level of demand for deposition technology in the market, the timing of final acceptance of products by customers, the condition of financial markets and access to financing for AIXTRON, general conditions in the market for deposition plants and macroeconomic conditions, cancellations, rescheduling or delays in product shipments, production capacity constraints, extended sales and qualification cycles, difficulties in the production process, the general development in the semi-conductor industry, increased competition, fluctuations in exchange rates, availability of public funding, fluctuations and/or changes in interest rates, delays in developing and marketing new products, a deterioration of the general economic situation and any other factors discussed in any reports or other announcements , in particular in the chapter Risks in the Annual Report, filed by AIXTRON. Any forward-looking statements contained in this document are based on current expectations and projections of the executive board based on information available the date hereof. 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.

This document is an English language translation of a document in German language. In case of discrepancies, the German language document shall prevail and shall be the valid version.