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Discovering Precision Power Leadership at Advanced Energy’s Analyst Day
게시됨 12월 06, 2024 으로 Edwin Mok
On November 19, 2024, Advanced Energy (AE) hosted its 2024 Analyst Day in New York City and provided a comprehensive view of the company to Wall Street analysts and investors. The executive team shared the company’s strategies, growth prospects, new products, and updated financial model. Investors also had the opportunity to view AE’s precision power products at demo stations and learned about their technical advantages and value propositions from business leaders.
Key Themes
The three-hour event included talks given by Advanced Energy’s CEO Steve Kelley and CFO Paul Oldham, as well as three business leaders Juergen Braun, Emdrem Tan and John Donaghey. The presentation materials are available here.
The event focused on three key themes:
The power of AE’s technology-focused business model
A key theme across all the presentations is Advanced Energy’s emphasis on leading with cutting-edge technologies. With over four decades of expertise in precision power, AE has developed the most extensive portfolio of products and technologies compared to its competitors. The variety of technologies, combined with a global team of more than 1,500 power engineers and specialists, enables AE to provide customer-enabling solutions. From next-generation plasma power systems to proprietary medical power solutions, Advanced Energy is driving innovation by offering advanced technologies to support its customers’ endeavors.
Additionally, by leveraging technical capabilities across various markets, AE can accelerate its pace, enhance engineering efficiency, and expedite technical roadmaps to address customers’ complex power requirements. This strategic advantage enables AE to seize high-value, differentiated opportunities in long life-cycle applications while avoiding the commoditized parts of the market. AE’s focus on advanced technologies establishes a sustainable competitive advantage and solidifies its unique position as a market leader.
Strong momentum across growth initiatives, with more to come
AE is targeting to grow 40% faster than its markets through a combination of an accelerated pace of new product introduction, market share gains, and expanded customer engagement. The management team presented specific growth strategies and provided detailed growth targets for each of its markets.
In Semiconductor Equipment, Advanced Energy’s eVoS™, eVerest™ and NavX™ next-generation platforms are solving customers’ toughest technical challenges in 3D devices and other leading-edge processes, resulting in very strong customer pull for AE’s products. In Data Center Computing, AE has accelerated its technology roadmap to satisfy the sharp increase in rack power requirements for new AI processors. In the Industrial and Medical market, AE is growing its broad portfolio of products and technologies, expanding the industry’s largest technical team to support customer development, and enhancing its digital platform and distribution strategy.
The outcome of these growth initiatives is a strong momentum in new products and design wins, positioning AE to surpass its market growth through the end of the decade and beyond.
“We have cross-company initiatives, like our unified website, which we introduced last August,” said Steve Kelley. “That has expanded our customer list, increased the number of our design wins, and generally improved support levels for small customers and large."
Increased long-term financial targets show management's confidence
Advanced Energy has set ambitious goals in its 2030 Target Financial Model. From 2024 levels, AE aims to double revenues to $3 billion and quadruple earnings to $15 per share by 2030, with two-thirds of the revenue growth coming from organic efforts. AE participates in a number of cyclical growth markets and the meaningful targets highlight management’s confidence in its new product introduction engine and the solid momentum of its growing design win pipeline. The company also plans to sustain a gross margin of 40% even during downturns, with a long-term target of 43%. To achieve this, AE is consolidating manufacturing sites and improving its product mix by increasing the revenue contribution of sole-sourced designs from 70% to over 80%.
“Our diverse end markets are attractive with plenty of growth in many high-end applications,” Kelley said. “We expect to deliver solid revenue growth through our new product and design win momentum, and we have the financial capacity to make strategic acquisitions.”
Solid Feedback
The AE Investor Relations team received positive feedback from analysts and investors. Many traveled to meet the AE team in person, while others joined the live webcast. Participants appreciated the live demos, Q&A session, high-quality materials, and presentations. Investors felt they gained a better understanding of Advanced Energy, achieving the event's goal. We look forward to hosting more events for our investors in the future.
Additional Information
For those who missed the event, please click here for a recording of the event webcast.
The 2024 Analyst Day presentation can be found here.
Key Themes
The three-hour event included talks given by Advanced Energy’s CEO Steve Kelley and CFO Paul Oldham, as well as three business leaders Juergen Braun, Emdrem Tan and John Donaghey. The presentation materials are available here.
The event focused on three key themes:
The power of AE’s technology-focused business model
A key theme across all the presentations is Advanced Energy’s emphasis on leading with cutting-edge technologies. With over four decades of expertise in precision power, AE has developed the most extensive portfolio of products and technologies compared to its competitors. The variety of technologies, combined with a global team of more than 1,500 power engineers and specialists, enables AE to provide customer-enabling solutions. From next-generation plasma power systems to proprietary medical power solutions, Advanced Energy is driving innovation by offering advanced technologies to support its customers’ endeavors.
Additionally, by leveraging technical capabilities across various markets, AE can accelerate its pace, enhance engineering efficiency, and expedite technical roadmaps to address customers’ complex power requirements. This strategic advantage enables AE to seize high-value, differentiated opportunities in long life-cycle applications while avoiding the commoditized parts of the market. AE’s focus on advanced technologies establishes a sustainable competitive advantage and solidifies its unique position as a market leader.
Strong momentum across growth initiatives, with more to come
AE is targeting to grow 40% faster than its markets through a combination of an accelerated pace of new product introduction, market share gains, and expanded customer engagement. The management team presented specific growth strategies and provided detailed growth targets for each of its markets.
In Semiconductor Equipment, Advanced Energy’s eVoS™, eVerest™ and NavX™ next-generation platforms are solving customers’ toughest technical challenges in 3D devices and other leading-edge processes, resulting in very strong customer pull for AE’s products. In Data Center Computing, AE has accelerated its technology roadmap to satisfy the sharp increase in rack power requirements for new AI processors. In the Industrial and Medical market, AE is growing its broad portfolio of products and technologies, expanding the industry’s largest technical team to support customer development, and enhancing its digital platform and distribution strategy.
The outcome of these growth initiatives is a strong momentum in new products and design wins, positioning AE to surpass its market growth through the end of the decade and beyond.
“We have cross-company initiatives, like our unified website, which we introduced last August,” said Steve Kelley. “That has expanded our customer list, increased the number of our design wins, and generally improved support levels for small customers and large."
Increased long-term financial targets show management's confidence
Advanced Energy has set ambitious goals in its 2030 Target Financial Model. From 2024 levels, AE aims to double revenues to $3 billion and quadruple earnings to $15 per share by 2030, with two-thirds of the revenue growth coming from organic efforts. AE participates in a number of cyclical growth markets and the meaningful targets highlight management’s confidence in its new product introduction engine and the solid momentum of its growing design win pipeline. The company also plans to sustain a gross margin of 40% even during downturns, with a long-term target of 43%. To achieve this, AE is consolidating manufacturing sites and improving its product mix by increasing the revenue contribution of sole-sourced designs from 70% to over 80%.
“Our diverse end markets are attractive with plenty of growth in many high-end applications,” Kelley said. “We expect to deliver solid revenue growth through our new product and design win momentum, and we have the financial capacity to make strategic acquisitions.”
Solid Feedback
The AE Investor Relations team received positive feedback from analysts and investors. Many traveled to meet the AE team in person, while others joined the live webcast. Participants appreciated the live demos, Q&A session, high-quality materials, and presentations. Investors felt they gained a better understanding of Advanced Energy, achieving the event's goal. We look forward to hosting more events for our investors in the future.
Additional Information
For those who missed the event, please click here for a recording of the event webcast.
The 2024 Analyst Day presentation can be found here.
Edwin Mok
Advanced Energy
Edwin Mok is the Vice President of Strategic Marketing and Investor Relations at Advanced Energy.
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