First Sensor Ag · XETR:SIS
First Sensor — Berenberg Pan-European Discovery Conference 2018
54 slides from First Sensor's conference presentation, Jun 21, 2018
Slide 1: We Lead The Future - Company Presentation
WE LEAD THE FUTURE COMPANY PRESENTATION
Slide 2: Our Competence: Pattern recognition is our first core competence
OUR COMPETENCE Pattern recognition is our very first core competence. Light Radiation Acceleration Pressure Flow Level www.first-sensor.com | 2
Slide 3: Our Competence: Semiconductor production puts it into products
OUR COMPETENCE Semiconductor production puts this competence into products. www.first-sensor.com | 3
Slide 4: Our Competence: Microelectronic technology is our second core competence
OUR COMPETENCE Microelectronic technology comprises our second core competence. www.first-sensor.com | 4
Slide 5: We link our two competences to design sensor systems
OUR COMPETENCE We link our two competences in order to design sensor systems. Energy Storage Module Power Management Module Power Management Circuit Energy Battery Harvester Power Circuit Management Communication Module Sensing Module/Sensorfusion Radio Transceiver Signal Processing Wi-Fi Light Imag
Slide 6: We cover the entire value chain of sensor technology
OUR COMPETENCE Thereby, we cover the entire value chain of sensor technology. Sensor chip Packaging Sensor Sensor system − Silicium based − Connecting − Consists of a sensor − Measures and − converts physical microelectronic and chip, a housing and preprocesses data parameters into non-electronic mi
Slide 7: Our Presence: growth in core market and high potential regions
OUR PRESENCE We grow in our core market as well as in high potential sales regions. Sales share Sales share Sales share North America Europe Asia 10 % 80 % 10 % *Q3 2017 www.first-sensor.com | 7
Slide 8: We focus on Industrial, Medical and Mobility growth markets
OUR PRESENCE We focus on the growth markets Industrial, Medical and Mobility. − Industrial Process − Diagnostics − Cameras and camera Control − Medical Respiration systems − Radiation and and Pneumology − Pressure Sensors Security − Dialysis and Infusion − Optical Sensors − Smart Buildings − Flow Se
Slide 9: Industry needs sensors for autonomous interaction
OUR MARKETS The industry needs sensors for autonomous interaction between products and processes. Intelligent sensor systems control applications such as condition monitoring, predictive maintanance or human-machine collaboration. Source: Sick AG www.first-sensor.com | 9
Slide 10: Medical market: miniaturization and digital health
OUR MARKETS The medical market is characterized by miniaturization & digital health. The trend is toward ever more intelligent solutions that connect data in the cloud prior to communicating with the control technology, thereby enabling semi-automated diagnosis. 1 mbar to 7 bar www.first-sensor.com
Slide 11: Mobility market driven by a new idea of transportation
OUR MARKETS The mobility market is driven by a new idea of transportation. The trend towards partially and fully autonomous vehicles is possible only thanks to sensor-based driver assistance systems. www.first-sensor.com | 11
Slide 12: Pressure sensors are important for driver assist systems
OUR MARKETS Pressure sensors are important for driver assist systems. www.first-sensor.com | 12
Slide 13: Optical sensors are irreplaceable for autonomous driving
OUR MARKETS Optical sensors are irreplaceable for autonomous driving. www.first-sensor.com | 13
Slide 14: Growth Driver Autonomous Driving
GROWTH DRIVER AUTONOMOUS DRIVING
Slide 15: Main reason for accidents are preventable human mistakes
GROWTH DRIVER AUTONOMOUS DRIVING Main reason for accidents are preventable human mistakes. 1 Mistakes of car drivers 63.9 % 2 Mistakes of bicyclists 13.5 % 3 Bad road conditions 7.7 % 4 Mistakes of motorbike riders 7.2 % 5 Mistakes of truck drivers 5.7 % 6 Mistakes of pedestrians 3.5 % 7 Technical i
Slide 16: Cars become more and more autonomous
GROWTH DRIVER AUTONOMOUS DRIVING Therefore cars become more and more autonomous. Autonomous Level 1 Level 2 Level 3 Level 4 Level 5 Levels Assisted Partly Highly Fully Driverless Driving Automated Automated Automated Automatic Emergency Active Cruise Control Brake (AEB) (ACC) Lane Keep Assist (LKA)
Slide 17: LiDAR and cameras are irreplaceable for autonomous cars
GROWTH DRIVER AUTONOMOUS DRIVING LiDAR and Cameras are irreplaceable for autonomous cars. Long-Range Short-/ Medium- LiDAR Camera Ultrasound Radar Range Radar Blind Spot Detection Cross Traffic Emergency Surround View Braking Alert Rear Colission Traffic Sign Pedestrian Warning Park Park Detection R
Slide 18: Good detection performance and safe surround view
GROWTH DRIVER AUTONOMOUS DRIVING They provide a good detection performance and a safe surround view. On Board Sensor Capability LIDAR Camera RADAR V2X & Map & (Detection & (Monitoring & (Detection & Cellular* Location ranging) classification) ranging) (Information) (Information) Detection Traffic ob
Slide 19: In LiDAR systems different components work hand in hand
GROWTH DRIVER AUTONOMOUS DRIVING In LiDAR systems different components work hand in hand. Source: Velodyne www.first-sensor.com | 19
Slide 20: First Sensor is an important supplier of LiDAR detectors
GROWTH DRIVER AUTONOMOUS DRIVING First Sensor is an important supplier for the detectors in LiDAR systems. Analog ASIC/MPU Front End Emitter Detector Beam Optics steering Source: IHS Markit/First Sensor www.first-sensor.com | 20
Slide 21: APD leading share for more than 10 years
GROWTH DRIVER AUTONOMOUS DRIVING With our APD we have captured a leading share for more than 10 years. Single APD with DARPA Urban Challenge; First Industrial hybrids Few Pixel APD-Array in SMD package amplifier Sensor APDs in all winning teams (APD+TIA in one package) for ACC / AEC-Q 101 qualified
Slide 22: This advantage drives automotive and industrial applications
GROWTH DRIVER AUTONOMOUS DRIVING This advantage drives automotive and industrial applications. − Safety, comfort and cost reduction infrastructure drive development of partly Automotive or fully autonomous vehicles − First adaptation: special vehicles − Large volume: passenger car www.megatechnews.c
Slide 23: Strategic Perspective for Profitable Growth
STRATEGIC PERSPECTIVE FOR PROFITABLE GROWTH
Slide 24: Our strategy: economies of scale in 4 dimensions
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in 4 dimensions. 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component Nort
Slide 25: Our strategy: economies of scale in 4 dimensions
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in 4 dimensions. 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component Nort
Slide 26: Dimension 1: Our target markets are growth markets
DIMENSION 1: CLEAR FOCUS ON OUR TARGET MARKETS Our target markets are growth markets Industrial Medical Mobility + 6.0 % up to 2018 + 11.0 % up to 2020 + 13.0 % up to 2018 + 10.8 % up to 2020 * + 10.8 % up to 2020 + 8.0 % in 2018 + 7.5 % in 2018 www.first-sensor.com | 26
Slide 27: Dimension 1: We participate in this market growth
DIMENSION 1: CLEAR FOCUS ON OUR TARGET MARKETS We participate in this market growth in € million 3.2% CAGR 74.1 75.1 2014 2015 2016 2017 72.5 68.4 8.1% CAGR 46.9 44.5 +8,3 % 11.0% CAGR 39.8 -6.6 % 35.2 30.7 27.9 23.8 20.4 +31.2 % +13,4 % +49.5 % Industrial Medical Mobility www.first-sensor.com | 27
Slide 28: Our strategy: economies of scale in 4 dimensions
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in 4 dimensions. 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component Nort
Slide 29: Dimension 2: Why is focus on key customers and products efficient?
DIMENSION 2: CLEAR FOCUS ON KEY CUSTOMERS & PRODUCTS Why is this efficient? Key Customers Key Products Single respective product developments result in relatively large quantities and therefore sales volumes. Sales per head in both sales and engineering increases – our existing team will be able
Slide 30: Our strategy: economies of scale in 4 dimensions
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in 4 dimensions. 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component Nort
Slide 31: Dimension 3: Forward integration based on product roadmaps
DIMENSION 3: CLEAR FOCUS ON FORWARD INTEGRATION We base our forward integration initiatives on clear product roadmaps. Radiation Flow Acceleration Light Level Pressure Integrated Manufacturing Services Multi Sensor Systems www.first-sensor.com | 31
Slide 32: Example: multi sensor system for HVAC applications
DIMENSION 3: CLEAR FOCUS ON FORWARD INTEGRATION One example is a multi sensor system for HVAC applications www.first-sensor.com | 32
Slide 33: Our strategy: economies of scale in 4 dimensions
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in 4 dimensions. 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component Nort
Slide 34: Dimension 4: Growth in key sales regions
DIMENSION 4: CLEAR FOCUS ON INTERNATIONALIZATION We generated further growth in our key sales regions in € million 5.9% CAGR * expired mobility order 75.1 74.3 2014 2015 2016 2017 70.3 62.6 -3.6% CAGR* 48.8 45.1 46.2 40.4* 57.9% CAGR 8.9% CAGR 17.3 13.7 14.9 11.9 11.5 12.7 8.2 4.4 DACH Rest of Europ
Slide 35: Our strategy: economies of scale in 4 dimensions
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in 4 dimensions. 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component Nort
Slide 36: Focus on operative excellence: current core initiatives
THE FUNDAMENT: FOCUS ON OPERATIVE EXCELLENCE Our current core initiatives Top Initiatives T‘s & C‘s Harmonization Harmonized Core Processes OneERP progressing Lead Time, On-Time Delivery, Quality continuous Portfolio Optimization ongoing Portfolio Consolidation ongoing www.first-sensor.c
Slide 37: Financial Key Figures
FINANCIAL KEY FIGURES
Slide 38: We are clearly on a path of growth
FINANCIAL KEY FIGURES We are clearly on a path of growth sales in € million * Guidance 2018 150-160* 150.1 147.5 137.7 124.0 111.9 108.5 65.1 45.2 37.0 38.5 32.6 30.2 13.8 16.0 10.7 11.6 12.0 3.0 5.7 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 39: Profitability as important as sales growth: EBIT 2012-2017
FINANCIAL KEY FIGURES To strengthen our profitability is just as important as sales growth EBIT 2012 – 2017 EBIT margin in € million in % 12 12 10.6 10.0 10 10 8 7.2% 8 6 6 4.1 6.7% 3.6 4 4 2.7 3.2% 3.3% 1.2 2 2 2.5% 0.9% 0 0 2012 2013 2014 2015 2016 2017 EBIT EBIT margin www.first-sensor.com | 39
Slide 40: Q1 sales of €34.5 million on level of previous year
FINANCIAL KEY FIGURES Q1 sales with € 34.5 million on level of previous year Total sales in € million Comments Production recorded decreased output due to the introduction of a new 35.4 34.3 34.6 39.3 39.3 34.5 ERP system for company management. As a result the booked order volume was not produced i
Slide 41: Reduced output evident in order backlog of €97.3 million
FINANCIAL KEY FIGURES Reduced output is evident in order backlog of €97.3 million in € million orders on hand sales Comments 96.5 97.3 Order backlog with 90.7 92.5 88.9 €97.3 million €4.8 million 82.2 up on the fourth quarter of 2017; € 8.4 +8,3 % million up on the first -6.6-xxx % % quarter of 2017
Slide 42: Further growth in all target markets
FINANCIAL KEY FIGURES Further growth in all target markets over the course of the year Sales by target market in € million 3M 2017 3M 2018 Comments IND: lower sales volume closing date related; sales share 47.3% MED: sales increase primarily due to optical diagnostics customers; sales share 21.3% MO
Slide 43: DACH region still the most important market
FINANCIAL KEY FIGURES DACH region still the most important market Sales by region in € million, Comments 3 M 2017 3 M 2018 No mayor changes in sales split by regions German-speaking area with 53.0% still the most important market 17.7 18.1 Rest of Europe: sales share 27.0%; decrease due to shifts in
Slide 44: EBIT margin 3.1% due to reduced economies of scale
FINANCIAL KEY FIGURES EBIT-Margin 3.1 % due to reduced economies of scale and growth costs 5 12,0 % EBIT in € million, EBIT-margin % EBIT EBIT margin Comments 10.4% 10,0 % 4 Compared to Q1 2017 7.8% 8,0 % − increased cost of 3 material: € +1.2 6,0 % million 5.1 % − increased personnel 4.4 % 4.6 % 2
Slide 45: Cash flow items improve slightly year-on-year
FINANCIAL KEY FIGURES Cash flow items improve slightly year-on-year in € million Comments Operating Cash Flow Free Cash Flow With roughly constant sales and a significant increase in inventories, operating cash flow improved slightly Moderate additions to investments curbed the 0.1 outflow of cash N
Slide 46: Consolidated balance sheet almost unchanged
FINANCIAL KEY FIGURES Consolidated balance sheet almost unchanged in € million Comments 159.6 159.2 159.6 159.2 13.8 11.7 25.5 23.0 increase in inventories of 7.9 9.7 Assets 2.4 7.7 7.5 Liabilities around €2.8 financed with 3.3 cash and cash equivalents 20.8 21.2 to allow improvement in Current liab
Slide 47: Growth-driven investments in expanding personnel levels
FINANCIAL KEY FIGURES Growth-driven investments in expanding personnel levels Q1 2017 Q1 2018 Comments personnel expenses: € 11.4 million € 11.8 million +3.5% sales per employee: € 43.9 thousand € 42.5 thousand -3.2% The increase in employees is attributable to additional requirements for 822 869 se
Slide 48: Order intake high, book-to-bill indicates further growth
FINANCIAL KEY FIGURES Order intake still on high level, book-to-bill indicates further growth in € million incoming orders book-to-bill ratio Comments 1.28 1.07 1.07 1.14 Incoming orders totaled 1.02 €39.3 million. As an important growth indicator, 44.4 42.0 42.1 our book-to-bill ratio thus 0.81 39.
Slide 49: Management confirms guidance 2018
FINANCIAL KEY FIGURES Management confirms guidance 2018 SALES REVENUES 150 - 160 MILLION EURO EBIT MARGIN 7-9 PERCENT www.first-sensor.com | 49
Slide 50: Further Information
FURTHER INFORMATION
Slide 51: Executive Board
FURTHER INFORMATION Executive Board Dr. Dirk Rothweiler Dr. Mathias Gollwitzer CEO CFO since Jan. 1, 2017 since Aug. 10, 2015 2017 CEO, First Sensor AG 2015 CFO, First Sensor AG 2012 Vice President Group Controlling, EnBW Energie Baden-Württemberg AG 2008 Executive Vice President Optical Systems, Je
Slide 52: Financial Calendar 2018
FURTHER INFORMATION Financial Calendar 2018 When? What? 13.08.2018 6-Month Financial Report, https://webcasts.eqs.com/firstsensor20180813 12.11.2018 Q3 Interim Report, https://webcasts.eqs.com/firstsensor20181112 26./27.11.2018 Analyst' Conference: German Equity Forum, Sheraton Airport Hotel, Frankf
Slide 53: First Sensor Share
FURTHER INFORMATION First Sensor Share Key facts* Market Cap: € 219,65 m 55,59 % Traded stocks/day: 15,073 36,02 % 30 Day High: 25,4 30 Day Low: 20,5 Index Ranking Free Float 50 Market Capitalization: Index Ranking Turnover: 44 5,03 % FS Technology Holding S.à.r.l. 3,36 % Midlin NV. Gerlin NV. Share
Slide 54: We Lead The Future
WE LEAD THE FUTURE Company Presentation 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 information purposes with regard to possible future developments at the co
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