First Sensor Ag · XETR:SIS
First Sensor — Investor Presentation (May 2019)
55 slides from First Sensor's investor presentation, May 2019
Slide 1: Sensing Innovations – Company Presentation
Sensing Innovations Company Presentation
Slide 2: Our Profile
Our Profile
Slide 3: We are a German-based expert in sensor technologies
OUR PROFILE We are a german-based expert in sensor technologies How we operate How we differ − Founded in 1991 and grown through series − Unique capabilities in photonics,pressure of acquisitions and organically sensors and advanced electronics − Headquartered in Berlin − Proven know-how to capture,
Slide 4: We offer chip & packaging expertise
OUR PROFILE We offer chip & packaging expertise SEMICONDUCTOR PRODUCTION 1 Berlin-Oberschoeneweide 2 Berlin-Weissensee − Headquarters with central company − Focus on packaging technologies departments − Specialized in the packaging of electronic − Specialized in semiconductor production microsystems
Slide 5: We are clearly on a path of profitable growth
OUR PROFILE We are clearly on a path of profitable growth Buy and build M&A growth Integration Leadership and execution Sales in €m EBIT margin: 0.9% 6.7% 7.2% 7.9% 8.5% Adj.CAGR1 150.1 147.5 2 155.1 137.7 124.0 111.9 108.5 Automotive customer 65.2 145.6 126.8 136.9 37.0 38.5 45.2 108.3 101.5 112.1
Slide 6: We are a sensor expert for photonics, pressure & advanced electronics
OUR COMPETENCIES We are a sensor expert for photonics, pressure & advanced electronics Core technologies in which First Sensor is particularly strong Next measures Strategic objectives − Full control of entire value chain including chip know-how − Next generation H series Drive market expansion of “
Slide 7: Customer-specific sensor solutions and standard products
OUR COMPETENCIES We provide customer-specific sensor solutions and standard products Broad and high quality product offering System expertise 1 Sensor Solutions − Optical sensors 35% In-house capabilities along 70% Sales share Photonics the sensor value chain − Cameras − Radiation sensors Sensor Und
Slide 8: We are internationally positioned
OUR MARKET POSITION We are internationally positioned ~75.0% ~12.5% ~12.5% SALES SHARE EUROPE SALES SHARE SALES SHARE NORTH AMERICA ASIA www.first-sensor.com | 8
Slide 9: We focus on three growing B2B markets
OUR MARKET POSITION We focus on three growing B2B markets Market development1 Megatrends FIS applications 2018 2021 Industry4.0 52% − Length measurement Industrial Smartbuilding − Radiation & security Sales share 7.3% − Smart building $2.9bn $3.6bn CAGR Predictivemaintenance − Industrial processcont
Slide 10: Our Strategy
Our Strategy
Slide 11: Economies of scale in 4 dimensions
STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in 4 dimensions Key Customers 1 Target Markets 2 3 Forward Integration 4 Internationalisierung Internationalization & Products Sensor DACH Industrial Key Fusion customers Sensor > €1m p.a. Europe System Medical Module/ Transmi
Slide 12: Dimension 1: Clear focus on our target markets
STRATEGY FOR PROFITABLE GROWTH Dimension 1: Clear focus on our target markets Key Customers 1 Target Markets 2 3 Forward Integration 4 Internationalisierung Internationalization & Products Sensor DACH Industrial Key Fusion customers Sensor > €1m p.a. Europe System Medical Module/ Transmitter North A
Slide 13: We grow in megatrend driven target markets
DIMENSION 1: CLEAR FOCUS ON OUR TARGET MARKETS We grow in megatrend driven target markets INDUSTRIAL MEDICAL MOBILITY DIGITIZATION & CONNECTIVITY ▪ INDUSTRY 4.0 ▪ E-HEALTH & TELEMEDICINE ▪ AUTONOMOUS DRIVING ▪ SMART CITIES ▪ MINIATURIZATION ▪ GREEN MOBILITY ▪ INTERNET OF THINGS ▪ AMBIENT ASSISTED LI
Slide 14: Focus on applications with most relevant contributions to growth
DIMENSION 1: CLEAR FOCUS ON OUR TARGET MARKETS and focus on applications with most relevant contributions to growth Focus Applications Growth & Emerging Applications 80% revenue contribution in 2018 & Relevant growth drivers midterm; leading growth drivers midterm & significant growth potential beyo
Slide 15: Next measures: Novelties, targeted sales & expanded capacities
OUR STRATEGY FOR PROFITABLE GROWTH Our next measures: Novelties, targeted sales & expanded capacities Sensor fusion with Embedded ECU Grow with pressure in Asia Next generation H series & software competencies New APD generation for Volume production with new Increase production capacities autonomou
Slide 16: Dimension 2: Focus on key customers and key products
OUR STRATEGY FOR PROFITABLE GROWTH Dimension 2: Clear focus on key customers and key products Key Customers 1 Target Markets 2 3 Forward Integration 4 Internationalisierung Internationalization & Products Sensor DACH Industrial Key Fusion customers Sensor > €1m p.a. Europe System Medical Module/ Tra
Slide 17: Significantly increased sales with key customers
DIMENSION 2: CLEAR FOCUS ON KEY CUSTOMERS We have significantly increased sales with our key customers 2014 2015 2016 2017 2018 Total number of customers 3,658 3,565 3,288 3,022 2,696 # of key customers 23 28 33 36 37 (sales >€1m p.a.) +50% €95m €93m €96m €77m €64m Total sales from key customers 201
Slide 18: Sales with key products has grown
DIMENSION 2: CLEAR FOCUS ON KEY CUSTOMERS Sales with our key products has grown since rollout of our strategy 2014 2015 2016 2017 2018 # of key product 9 10 11 12 12 groups (sales >€1m p.a.) 39 Total sales from 34 key products 31 (sales >€1m p.a.) 30 30 2014 2015 2016 2017 2018 www.first-sensor.com
Slide 19: Dimension 3: Clear focus on forward integration
OUR STRATEGY FOR PROFITABLE GROWTH Dimension 3: Clear focus on forward integration Key Customers 1 Target Markets 2 3 Forward Integration 4 Internationalisierung Internationalization & Products Sensor DACH Industrial Key Fusion customers Sensor > €1m p.a. Europe System Medical Module/ Transmitter No
Slide 20: System expertise along the value chain
DIMENSION 3: CLEAR FOCUS ON FORWARD INTEGRATION System expertise along the value chain is a strong basis for our offering System expertise Broad and high quality product offering Key growth drivers In-house capabilities along the sensor value chain − Optical sensors Photonics Camera − LiDAR Sensor C
Slide 21: Key growth drivers to expand our market position
DIMENSION 3: CLEAR FOCUS ON FORWARD INTEGRATION We use 3 key growths drivers to expand our market position MEMS / Pressure APD / LiDAR Camera Systems objectives Strategic Drive market expansion by Establish sustainable and Further strengthen leading position, strengthening low and high pressure defe
Slide 22: Dimension 4: Clear focus on internationalization
STRATEGY FOR PROFITABLE GROWTH Dimension 4: Clear focus on internationalization Key Customers 1 Target Markets 2 3 Forward Integration 4 Internationalisierung Internationalization & Products Sensor DACH Industrial Key Fusion customers Sensor > €1m p.a. Europe System Medical Module/ Transmitter North
Slide 23: We expand our vertical and regional sales worldwide
DIMENSION 4: CLEAR FOCUS ON INTERNATIONALIZATION We expand our vertical and regional sales worldwide DACH Europe North America Asia contribution Sales €53.9m 9% CAGR €76.4m €52.9m -7% CAGR €38.8m €5.9m 34% CAGR €19.2m €12m 13% CAGR €19.4m Status quo 3.5% 12.1% 9.3% 12.8% 43.5% 49.3% 42.7% 25.0% 77%
Slide 24: Foundation: Operative Excellence
STRATEGY FOR PROFITABLE GROWTH Foundation: Operative Excellence Key Customers 1 Target Markets 2 3 Forward Integration 4 Internationalisierung Internationalization & Products Sensor DACH Industrial Key Fusion customers Sensor > €1m p.a. Europe System Medical Module/ Transmitter North America Key Sen
Slide 25: Introduction of 6 inch wafer enhances productivity
FOUNDATION: OPERATIVE EXCELLENCE Introduction of 6 inch wafer will substantially enhance productivity Strategic rationale Introduction of 6 inch wafer Timeline of conversion − Production effectiveness 4 inch1 6 inch1 Large photodiodes 2018 (improved edge/area ratio) converted − Production efficiency
Slide 26: Outsourcing for a flexible production network
FOUNDATION: OPERATIVE EXCELLENCE We actively utilize outsourcing for a flexible production network Outsourcing process Driving criteria for further outsourcing Target products − Risk mitigation − Commodity technologies with high demand for automation (investment 1 Define products for − Increase marg
Slide 27: Economies of scale in 4 dimensions
STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in 4 dimensions Key Customers 1 Target Markets 2 3 Forward Integration 4 Internationalisierung Internationalization & Products Sensor DACH Industrial Key Fusion customers Sensor > €1m p.a. Europe System Medical Module/ Transmi
Slide 28: Our Key Figures 2018
Our Key Figures 2018
Slide 29: Financial result 2018 at a glance
FINANCIAL RESULT 2018: AT A GLANCE We further succeed in implementing our strategy for profitable growth Buy and build M&A growth Organic growth Sales in € million EBIT margin: 0.9% 6.7% 7.2% 7.9% 155.1 150.1 147.5 2 137.7 124.0 111.9 108.5 Automotive customer 65.2 145.6 136.9 45.2 126.8 38.5 101.5
Slide 30: Top-line growth & margin improvement
FINANCIAL RESULT 2018: AT A GLANCE Top-line growth & margin improvement based on dedicated measures Sales growth (in € million) Profitability improvement (EBIT margin) 8.5% Adj. CAGR1 ~470bps 7.9% 155.1 124 3.2% 112 2014 Automotive customer 2018 2014 2018 Strong top-line growth despite portfolio res
Slide 31: P+L statement: significant improvement of key figures
FINANCIAL RESULT 2018: P+L STATEMENT Significant improvement of all relevant key figures has been achieved In € million 2017 2018 Change 1. Revenues 147.5 155.1 7.6 Other operating income 3.3 2.6 -0.7 Change in inventory -1.5 4.5 6.0 Other own work capitalized 2.5 2.0 0.5 Cost of material -69.3 -76.
Slide 32: Revenues by target market
P+L STATEMENT:REVENUES We continue in implementing our strategy for profitable growth Sales by target market in € million 6.7 4.3 155.1 5.3 147.5 Sales 2017 Industrial Medical Mobility Sales 2018 Industrial Medical Mobility − Sales growth 7.0% − Sales growth 23.7% − Sales decline -9.6% − New busines
Slide 33: Revenues by region
P+L STATEMENT: REVENUES We further strengthen our international presence Sales in € million +0.7 +4.5 +2.1 -1.6 +1.9 155.1 147.5 2017 DACH region Rest of Europe North America Asia Rest of World 2018 DACH region Rest of Europe North America Asia − Growth + 2.8% − Sales decrease in Hungary − Growth +
Slide 34: Growth drivers: photonic and pressure sensors
P+L STATEMENT: REVENUES Growth drivers: photonic and pressure sensors Sales share product groups in % Commentary Photonics − LiDAR receivers for driver assistance systems, robots 16.9% and drones − Customer-specific camera modules for industrial 34.0% inspection and aerial surveillance − Embedded el
Slide 35: Gross profit
P+L STATEMENT: GROSS PROFIT Gross profit with 52.9% slightly decreased due to higher inventories In € million Commentary Other Operating Income − Other operating income: investment grants and 2018 2.6 -0.7 changes in provisions 2017 3.3 Change in Inventory − Inventories: increase because of signific
Slide 36: Personnel expenses
P+L STATEMENT: PERSONNEL EXPENSES Increased FTE through investing in production and R&D for growth Employees in FTE 4 14 863 Salary/ Wages in € million 47 2018 49.0 +2.4 798 2017 46.6 Breakdown 2018 in € million wage/ salary adj. 1.1 +0.3 indemnity 0.1 -0.5 new hire 1.1 +0.5 Dec. 31, 2017 Production
Slide 37: Other operating expenses
P+L STATEMENT: OTHER EXPENSES Other operating expenses increase slightly by € 1.5 million In € million Commentary − Increased costs for maintenance of buildings and production equipment Other Expenses − Increased recruitment costs for hiring qualified staff 2018 17.8 +1.5 − Higher R&D expenses for i
Slide 38: EBIT increased by 16%
P+L STATEMENT: EBIT EBIT increased by 16% EBIT in € million 3.4 5.8 4.0 12.2 10.6 EBIT 2017 Product Mix Volume Effect Costs EBIT 2018 www.first-sensor.com | 38
Slide 39: Financial result
P+L STATEMENT: FINANCIAL RESULT Foreign currency policy leads to improved financial result In € million Commentary Financial Result − Contribution to earnings from currency gains and losses improved: €-1.6 million due to early reversal of currency -1.8 2018 +1.6 option contracts (TARF) -3.4 2017 BAL
Slide 40: Balance sheet: equity ratio rose by 1.4%
FINANCIAL RESULT 2018: BALANCE SHEET Equity ratio rose by 1.4% In € million Commentary 159.6 168.4 159.6 168.4 11.8 Cash 28.5 13.8 12.6 2018: €28.5 million Assets 25.5 7.2 Liabilities 2017: €25.5 million 3.9 7.9 3.3 17.9 7.7 20.8 Net Working Capital Cash and cash 48.0 Current liabilities 2018: €37.3
Slide 41: Investments in capacities and new equipment
BALANCE SHEET Investments in capacities and new equipment for growth In € million Commentary Equipment − Renovation of the sites Berlin-Weißensee, 2018 38.7 +6.3% Oberdischingen and Dresden Klotzsche 2017 36.4 − New equipment for our Fab in Berlin-Oberschöneweide − 6-Inch-Equipment mainly implemente
Slide 42: Net working capital
BALANCE SHEET: NET WORKING CAPITAL DSO slightly improved due to reductions of overdues and factoring In € million Commentary Inventory − Inventories were increased by €7.6 million in view 2018 14.1 12.7 5.2 +30.1% DIH +4 of the market and order situation 2017 11.2 6.3 7.1 − Accounts receivable were
Slide 43: Cashflow: liquidity position remains comfortable
BALANCE SHEET: CASHFLOW Group’s liquidity position remains comfortable In € million Commentary Cash Flow 2017 2018 − Operating cash flow on same level as previous year Operating CF 16.0 15.9 − Cash flow from investing activities still reflects the high level of investment required by First Sensor In
Slide 44: Our Key Figures Q1 2019
Our Key Figures Q1 2019
Slide 45: Q1 result: solid sales growth
Q1 RESULT Solid sales growth Total sales in € million Comments Further strengthening First Sensor’s core business Photonics (+€3.5 million) and Pressure (+€3.5 million) 39.9 40.8 40.0 41.4 Growing demand for 34.5 Imaging solutions and standard products of our H series Q1 2018 Q2 2018 Q3 2018 Q4 2018
Slide 46: Strong demand in Industrial and Medical
Q1 RESULT Strong demand in Industrial and Medical target markets Sales by target market in € million Q1 2018 Q1 2019 Comments Industrial: +25%; Growth in +5.8 +2.4 -1.3 Photonics & Pressure / North America & Asia Medical: +25%; Growth in Diagnostics (Photonics) & Breathing (Pressure) 22.2 16.3 Mobil
Slide 47: Increased sales with key customers and products
Q1 RESULT Increased sales with key customers and key products Sales in € million +1.6 +2.2 +3.1 41.4 34.5 Sales Q1 2018 Key Customers Key Products Other Customers Sales Q1 2019 Key Customers Key Products − Strong demand for Imaging Solution in the target − Strong demand for pressure sensors (H serie
Slide 48: Expanded activities in North America & Asia
Q1 RESULT Expanded activities in North America & Asia show further results Sales in € million +1.9 +0.2 +2.0 +0.9 41.4 +1.9 34.5 Sales Q1 2018 DACH region Rest of Europe North America Asia Rest of World Sales Q1 2019 DACH region Rest of Europe North America Asia − Growth 10.5% − Growth 10.5% − Growt
Slide 49: Order intake Q1 and backlog
Q1 RESULT Order intake Q1 at €42.3 million, backlog at €98.4 million in € million incoming orders book-to-bill ratio Comments 1.14 1.13 1.02 Order backlog remains at a 0.97 0.91 high level of €98.4 million 70% are scheduled for 2019 44.4 42.3 39.3 39.5 36.4 44.4 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 20
Slide 50: Continuous improvements lead to 9.9% EBIT margin
Q1 RESULT Continuous improvements lead to 9.9% EBIT margin 50,0 Sales in € million, EBIT margin in % 11.3% 12,0% 9.9% 45,0 10,0% 9.0% 40.8 41.4 39.9 40.0 40,0 8,0% 34.5 7.5% 35,0 6,0% 30,0 4,0% 25,0 3.1% 2,0% 20,0 0,0% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 www.first-sensor.com | 50
Slide 51: Outlook: Board confirms guidance for 2019
OUTLOOK Executive Board confirms the Guidance for 2019 www.first-sensor.com | 51
Slide 52: Chances and risks for sales and profitability
OUTLOOK Chances and risks for sales and profitability Sales Profitability − Strong sensor technology market: − Economies of Scale − Global market for optical and pressure sensors Chances − Continuous measures to improve operational with average growth rate approx. 7-8% to 2022 excellence: − High ord
Slide 53: Our Shareholder Structure
Our Shareholder Structure
Slide 54: DPE considering sale of its shares
SHAREHOLDER STRUCTURE Consideration of DPE to sell ist shares is going on October 31, 2018 − Adhoc: DPE considers to sell its shares in First Sensor AG − As a result, it is possible that a possible acquirer will be obliged to submit a takeover bid − First Sensor AG intends to play an active role in
Slide 55: Sensing Innovations – First Sensor AG
Sensing Innovations Company Presentation May 2019 First Sensor AG www.first-sensor.com [email protected] This presentation contains forward-looking statements. This presentation does not represent any solicitation to purchase shares of First Sensor AG. Rather it is intended exclusively for informa