Inficon Holding Ag · SIX:IFCN
Inficon — Q3 2011 Earnings Presentation
30 slides from Inficon's earnings presentation, Oct 20, 2011
Slide 1: Slide 1
Slide 2: 3rd Quarter 2011 Earnings Conference Call
INFICON 3rd Quarter 2011 Earnings Conference Call October 20, 2011 Bad Ragaz, Switzerland
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that reflect Management’s current views and estimates. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking s
Slide 4: Speakers
Speakers Lukas Winkler, President and CEO Key figures Q3:2011 Target market business review 2011 Expectations Matthias Tröndle, Vice President and CFO Financials Q3:2011 Outlook 1 2008 Template - January 2008 4 20-Oct-2011 INFICON Q3 2011
Slide 5: Q3:2011 – Key Figures
Q3:2011 – Key Figures Q3:2011 with solid results • Sales increase by 14.8% to USD 78.4 million compared with Q3:2010 (FX +8.4%) • New record-high sales in Refrigeration & Air Conditioning • Q3:2011 Y-o-Y sales increase in all markets and regions • Sales decrease of 4.1% compared with Q2:2011 • Boo
Slide 6: Net Sales by End-Market
Net Sales by End-Market USD 78.4 million in Q3:2011 vs. USD 68.3 million a year ago (+14.8%) 6% (6%) 17% (17%) 42% (41%) Q3:11 (Q3:10) 35% (36%) Emergency Response & Security Refrigeration & Air-Conditioning 1 Specific 2008 Template Vacuum Process Industries: Solar, Display, Optics & Semi - January
Slide 7: Emergency Response & Security
Emergency Response & Security Q3:2011 27.8 Q3:2011 sales +9% vs. Q3:2010 6.3 22.5 22.0 Sequential increase of +15% 18.5 17.4 Increasing base business, 6.5 7.4 6.0 5.9 good order intake in Q3 5.4 4.3 12.0 6.8 (government year-end money) 3.3 3.5 7.4 4.9 4.7 4.3 4.8 4.0 4.1 8.2 6.8 Market Trends
Slide 8: Refrigeration & Air Conditioning
Refrigeration & Air Conditioning 2006 - 2010 CAGR 9.0% Q3:2011 Q3:2011 sales +19% vs. Q3:2010 42.3 39.0 38.5 Sequential increase of 5% 36.2 12.3 Continued market dominance 30.0 9.6 7.0 29.0 13.6 New quarterly sales record 7.7 8.1 8.2 9.6 11.4 7.1 12.9 6.8 10.5 9.7 10.0 Market Trends 8.8 7.2
Slide 9: Specific Vacuum Process Industries
Specific Vacuum Process Industries Solar, Display, Optics & Semiconductor Q3:2011 2006 - 2010 CAGR 6.4% Q3:2011 sales +12% vs. Q3:2010 91.8 89.5 mainly driven by device manufacturers in Asia 83.2 and global equipment manufacturers for Semi, 78.4 optics and OLED/LED applications 71.5 26.1 27.4 22.6
Slide 10: General Vacuum Processes
General Vacuum Processes 2006 - 2010 CAGR 4.5% Q3:2011 Q3:2011 sales +16% vs. Q3:2010 114.0 109.3 101.6 mainly driven by global recovery 91.8 97.1 25.9 (Asia and Europe) 81.6 31.7 25.6 32.7 Sequential decrease of -7% due to 24.6 28.0 25.6 lower Private Label sales 24.2 23.4 28.2 35.0 30.8 19.1 2
Slide 11: Outlook 2011
Outlook 2011 Guidance increase, despite uncertain global economic situation and unpredictable exchange rate development Lower Capex spending for the upcoming quarters: Reduced spending for Semiconductor equipment Continued OLED display investments for the next generation of smart-phones and tab
Slide 12: Matthias Tröndle
Matthias Tröndle Vice President & Chief Financial Officer
Slide 13: Revenue (in USD million)
Revenue (in USD million) 78.4 81.8 -4.1% 78.4 F/X Effect 14.8% 8.4% 68.3 Q3:10 Q3:11 Q2:11 Q3:11 1 Strong revenue increase across all markets and regions compared with 2008 Template - January 2008 Q3:10. Slightly decreasing sequential sales. 13 20-Oct-2011 INFICON Q3 2011
Slide 14: Geographic Revenue Breakdown – Quarter
Geographic Revenue Breakdown – Quarter (in USD million) 1 2008 Template - January 2008 Increase across all regions, particularly Asia-Pacific. 14 20-Oct-2011 INFICON Q3 2011
Slide 15: Revenue (in USD million)
Revenue (in USD million) +14.8 % -4.1% 81.8 78.4 78.4 4.1 34.9% 4.7 68.3 4.7 12.9 4.3 13.6 13.6 11.4 29.8 27.4 27.4 24.5 Emergency Response & Security Refrigeration & Air Conditioning Specific Vacuum Process Industries (Solar, Display, Optics & Semi) 32.7 General Vacuum Processes 35.0 32.7 28.1 Q3:1
Slide 16: Gross Profit Margin (in %)
Gross Profit Margin (in %) 12 bps 46.6% 46.5% Q3:10 Q3:11 1 2008 Template - January 2008 Healthy margin and slight increase due to product mix. 16 20-Oct-2011 INFICON Q3 2011
Slide 17: Research & Development (in USD million)
Research & Development (in USD million) 15.9% 6.6 7.2% 5.7 8.4 % 7.2% 8.3 % Q3:10 Q3:11 R&D increased 8 bps as a percentage of revenue. Absolute increase driven by 1 2008 Template - January 2008 technology investments, headcount additions and FX impacts. 17 20-Oct-2011 INFICON Q3 2011
Slide 18: Selling, General & Administrative (in USD million)
Selling, General & Administrative (in USD million) 20.8% 17.5 8.6% 22.3% 16.1 23.6% Q3:10 Q3:11 1 SG&A decreased 128 bps as a percentage of sales. 2008 Template - January 2008 Absolute increase driven by FX, new hires and higher commissions on sales. 18 20-Oct-2011 INFICON Q3 2011
Slide 19: Income from Operations (in USD million)
Income from Operations (in USD million) 25.2% 12.5 16.0% 12.8% 18.6% 10.0 14.7% Q3:10 Q3:11 1 2008 Template - January 2008 Due to increased sales volume, healthy gross margins and cost control. 19 20-Oct-2011 INFICON Q3 2011
Slide 20: Income Tax Provision (in USD million)
Income Tax Provision (in USD million) 65.8% 3.5 25.8% 21.2% 2.1 23.5% Q3:10 Q3:11 1 2008 Template - January 2008 Increase due to higher earnings in Q3:11 and different tax rates in various jurisdictions. 20 20-Oct-2011 INFICON Q3 2011
Slide 21: Net Income (in USD million)
Net Income (in USD million) 46.3% 10.0 12.8% 13.3% 6.8 10.0% Q3:10 Q3:11 1 2008 Template - January 2008 Q3:11 increase driven by higher Operating Income. 21 20-Oct-2011 INFICON Q3 2011
Slide 22: EPS (USD/Share; diluted)
EPS (USD/Share; diluted) 44.4% 80.1% 80.1% 4.55 3.15 Q3:10 Q3:11 1 2008 Template - January 2008 In line with changes in Net Income. 22 20-Oct-2011 INFICON Q3 2011
Slide 23: Balance Sheet Highlights (in USD million)
Balance Sheet Highlights (in USD million) Q3:11 Q4:10 Cash & Short-term Inv. 94.8 70.3 Long-term Debt - - Shareholders' Equity 173.0 160.2 Q3:11 Q4:10 Days Sales Outstanding 47.2 45.8 Inventory Turns 5.2 5.4 1 2008 Template - January 2008 Solid balance sheet with no long-term debt. 23 20-Oct-2011 IN
Slide 24: Operating Cash Flow (in USD million)
Operating Cash Flow (in USD million) 42.9% 23.3 16.3 Q3:10 Q3:11 1 2008 Template - January 2008 Strong cash flow generation due to high net income and lower working capital. 24 20-Oct-2011 INFICON Q3 2011
Slide 25: Equity Ratio (in %)
Equity Ratio (in %) -538 bps 74.0% 68.7% Q4:10 Q3:11 1 2008 Template - January 2008 Solid balance sheet structure. 25 20-Oct-2011 INFICON Q3 2011
Slide 26: Working Capital and Working Capital Ratio
Working Capital and Working Capital Ratio (Inv + AR – AP) (WC as % of Revenue) 68.1 63.3 65.0 59.2 52.8 47.6 46.3 47.8 43.4 42.5 42.5 19.7% 20.8% 20.7% 28.0% 19.3% 19.4% 19.3% 27.9% 25.9% 19.7% 17.7% Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 Q2:10 Q3:10 Q4:10 Q1:11 Q2:11 Q3:11 1 2008 Template - January 2008 Eff
Slide 27: Capital Expenditures (in USD million, as % of Revenue)
Capital Expenditures (in USD million, as % of Revenue) CapExp ($M) 11.4% 6.7 2.9% 2.8% 2.7% 2.4% 2.4% 2.1% 1.7% 2.2 1.8% 2.0 1.4% 1.1% 1.3% 1.4% 1.3% 1.0% 1.5 1.5 1.5 1.7 1.0 0.4 0.9 0.6 0.6 0.9 0.9 1.3 Q1:08 Q2:08 Q3:08 Q4:08 Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 Q2:10 Q3:10 Q4:10 Q1:11 Q2:11 Q3:11 1 2008
Slide 28: Full Year 2011 Guidance – Update
Full Year 2011 Guidance – Update Sales ($M) 60 315 55 256 265 300 237 50 212 188 191 182 Full Year 2011 Guidance: 45 3rd Update this year – based on 40 previous performance and current 35 expectations for our end markets. 2004 2005 2006 2007 2008 2009 2010 2011 G Operating Income ($M) Sales 300 – 31
Slide 29: Thank You !
Thank You ! Q&A
Slide 30: INFICON – Instruments for Intelligent Control
6) INFICON Instruments for Intelligent Control™