Sensirion Holding AG · SIX:SENS

Sensirion — FY2019 Earnings Presentation

30 slides from Sensirion's earnings presentation, Mar 10, 2020

  1. Slide 1: Full-Year 2019 Results

    Full-Year 2019 Results Marc von Waldkirch, CEO Matthias Gantner, CFO 10 March 2020 © Copyright Sensirion Holding AG, Switzerland

  2. Slide 2: Agenda

    Agenda 1  Full-Year 2019 Highlights Marc von Waldkirch, CEO  Business Review 2  Full-Year 2019 Financial Review Matthias Gantner, CFO 3  Outlook Marc von Waldkirch, CEO 4  Q&A © Copyright Sensirion Holding AG, Switzerland 2

  3. Slide 3: FY 2019 Overview

    FY 2019 Overview  In all markets, we faced reduced demand and higher volatility as a result of the numerous geopolitical uncertainties and the crisis in the automotive industry.  Newly ramped up business in H2 2019 generated growth and partly compensated reduced revenue in H1 2019. Business  Desp

  4. Slide 4: Automotive FY 2019 Business Review

    Automotive FY 2019 Business Review Main results Revenue development (CHFm)  FY 2019 revenue decreased by 4.8% YoY to CHF 51.3m.  Revenue decline YoY primarily due to lower sales volumes in H1 2019 because of weak demand and inventory optimization throughout the whole supply chain. 53.9 51.3 41.1 

  5. Slide 5: Medical FY 2019 Business Review

    Medical FY 2019 Business Review Main results Revenue development (CHFm)  At CHF 35.1m, revenue in FY 2019 decreased by 8.9% YoY.  The revenue decline YoY resulted from a base effect. Two important CPAP customers built up inventories to launch new product generations during H2 2018, thus generating

  6. Slide 6: Industrial FY 2019 Business Review

    Industrial FY 2019 Business Review Main results Revenue development (CHFm)  FY 2019 revenue increased by 2.5% YoY to CHF 70.3m.  Revenue in the home appliance market grew YoY based on a stronger H2 2019. First significant revenue contribution from 70.3 60.3 68.6 our CO2 sensor in air exchanger app

  7. Slide 7: Consumer FY 2019 Business Review

    Consumer FY 2019 Business Review Main results Revenue development (CHFm)  FY 2019 revenue increased by 3.1% YoY to CHF 14.1m.  Fragmented market with many small- and mid-size customers with various applications. 13.3 13.7 14.1  Slight growth originated in higher volumes of humidity sensors, both

  8. Slide 8: Historical Revenue and Gross Margin Development

    Historical Revenue and Gross Margin Development Revenues core Revenues mobile 1 Gross margin 2 (CHFm) CAGR: +18% 180 100% 175 171 160 140 148 75% 120 131 Gross margin (%) Revenue 117 100 50% 80 53% 55% 57% 53% 54% 60 25% 40 20 0 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Not

  9. Slide 9: Expanded Portfolio of Environmental Sensors

    Expanded Portfolio of Environmental Sensors Highlights  The 1st generation CO2 sensor launched at the beginning of 2018 substantially contributed to revenue for the first time, thanks to product launches with lead CO2 sensor, 1st generation customers in the industrial market.  A 2nd generation of

  10. Slide 10: Agenda

    Agenda 1  Full-Year 2019 Highlights Marc von Waldkirch, CEO  Business Review 2  Full-Year 2019 Financial Review Matthias Gantner, CFO 3  Outlook Marc von Waldkirch, CEO 4  Q&A © Copyright Sensirion Holding AG, Switzerland 10

  11. Slide 11: Financials Overview FY 2019

    Financials Overview FY 2019 Key Financials  Revenue CHF 171.0m, -2.2% YoY (-1.8% organic, -0.4% FX effects).  Gross margin 53.7%.  Adjusted EBITDA margin 12.0%.  Operating cash flow CHF 25.7m, free cash flow CHF 8.6m. © Copyright Sensirion Holding AG, Switzerland 11

  12. Slide 12: Revenue Development from FY 2018 to FY 2019

    Revenue Development from FY 2018 to FY 2019 Components of revenue (CHFm) Revenue FY 2019  -2.2% YoY reduction, mainly from the automotive market (3.2) (0.6) (demand reduction) and the medical market (base effect). (1.8%) (0.4%) Foreign currency exchange effects  -0.4%, mainly from EUR and USD. 174

  13. Slide 13: Gross Margin and Opex Development

    Gross Margin and Opex Development Gross profit and gross margin (%) (CHFm / % of revenue) 57.5% Gross margin 53.2% 53.7%  From FY 2017 to FY 2018, dilution because of characteristics of legacy module business and inventory valuation impacts. 85.0 93.0 91.8  From FY 2018 to FY 2019, stable based on

  14. Slide 14: Adjusted EBITDA Development

    Adjusted EBITDA Development Adj. EBITDA1 and adj. EBITDA margin (%) (CHFm / % of revenue) 17.7% 15.9% Adjusted EBITDA FY 2019 12.0%  Adjusted EBITDA margin suffered disproportionately because of R&D-spending to support future growth and 26.2 27.8 20.4 the decline in revenue in conjunction with the

  15. Slide 15: Income Statement

    Income Statement Condensed consolidated income statement (CHFm / % of revenue) FY 2019 FY 2018 One-time effects Revenue 171.0 174.8  FY 2018: Mainly CHF 3.0m for external IPO costs Cost of sales (79.2) (81.8) and CHF 16.2m for the IPO Loyalty Share Program. Gross profit 91.8 53.7% 93.0 53.2%  FY 2

  16. Slide 16: Net Working Capital and Capital Expenditures

    Net Working Capital and Capital Expenditures Net working capital1 (CHFm / % of LTM revenue) 29.7% Net working capital FY 2019 24.9% 22.3%  Decreased YoY because of significant reduction of inventories during 2019. 43.9 43.5 38.1 As of 31 Dec 2017 31 Dec 2018 31 Dec 2019 Capex FY 2019 Capex2 vs. D&A

  17. Slide 17: Continuing Strong Balance Sheet

    Continuing Strong Balance Sheet As of 31 December 2019 As of 31 December 2018 Equity / total assets 72.5% Equity / total assets 74.6% Net cash1 CHF 48.0m Net cash1 CHF 42.6m Net cash / LTM adjusted EBITDA 2.3 Net cash / LTM adjusted EBITDA 1.5 Assets Liabilities and Equity Assets Liabilities and Equ

  18. Slide 18: Free Cash Flow Development

    Free Cash Flow1 Development FCF and FCF conversion rate (%) FY 2019 (CHFm) (CHFm / % of adjusted EBITDA) FCF FY 2019 25.7 EC sensor  CFI includes CHF 3.0m in connection (3.0) technology with the purchase of the electro- chemical (EC) sensor technology. 44.7% (14.1) 41.9% FCF conversion rate2  FY 2

  19. Slide 19: Agenda

    Agenda 1  Full-Year 2019 Highlights Marc von Waldkirch, CEO  Business Review 2  Full-Year 2019 Financial Review Matthias Gantner, CFO 3  Outlook Marc von Waldkirch, CEO 4  Q&A © Copyright Sensirion Holding AG, Switzerland 19

  20. Slide 20: Strategic Priorities

    Strategic Priorities Strategic drivers Strategic pillars Strategic priorities 1  Increase application penetration rate in all end markets through trickle-down effect. Drive market and cost  Leverage economies of scale through platform development and innovation leadership in existing markets leade

  21. Slide 21: Strategic Achievements

    Strategic Achievements Strategic drivers Strategic pillars Main strategic achievements 1  Further gains in market share in the Italian gas meter market. Drive market and cost  Continuous slight increase of market share in the humidity sensor market. leadership in existing markets  Product launch

  22. Slide 22: Outlook

    Outlook Given the current rapidly changing situation, it is difficult to provide an outlook for 2020: the global economic situation remains fragile and challenging in view of the continuing tense geopolitical environment and the unresolved coronavirus epidemic. Future effects of the epidemic on curr

  23. Slide 23: Financial Calendar

    Financial Calendar Date Event 10 March 2020 Full-Year 2019 Results and Annual Report 11 May 2020 Annual General Meeting 2020 19 August 2020 Half-Year 2020 Results and Interim Report Contact information Andrea Wüest Director Investor Relations and M&A Phone: +41 44 927 11 40 Email: andrea.wueest@sens

  24. Slide 24: Agenda

    Agenda 1  Full-Year 2019 Highlights Marc von Waldkirch, CEO  Business Review 2  Full-Year 2019 Financial Review Matthias Gantner, CFO 3  Outlook Marc von Waldkirch, CEO 4  Q&A © Copyright Sensirion Holding AG, Switzerland 24

  25. Slide 25: Appendix

    Appendix © Copyright Sensirion Holding AG, Switzerland 25

  26. Slide 26: Reconciliation of Profit (Loss) to Adjusted EBITDA

    Reconciliation of Profit (Loss) to Adjusted EBITDA Reconciliation FY 2019 (CHFm) (CHFm) 6.5 FY 2019 FY 2018 Profit (loss) for the period (2.7) (6.4) - Depreciation & amortization 15.9 15.3 - Net interest expenses, income taxes (0.9) 0.3 1.6 15.9 EBITDA 12.3 9.2 Adjusted for (0.9 ) 20.4 - Net finance

  27. Slide 27: Diversified Revenue Development Across all our End Markets

    Diversified Revenue Development Across all our End Markets Revenue development FY 2019 (FY 2018) revenue distribution (CHFm) YoY change +12.6% +18.1% -2.2% 8.3% (7.8%) 30.0% Automotive 174.8 (30.8%) 171.0 Medical 13.7 14.1 41.1% 148.0 Industrial (39.3%) 13.3 Consumer 20.6% 68.6 70.4 (22.1%) 60.3 20.

  28. Slide 28: Statement of Cash Flows

    Statement of Cash Flows Condensed consolidated statement of cash flows (CHFm) FY 2019 FY 2018 CFO FY 2019 Cash flow from operating activities (CFO) 25.7 26.4  Continuous generation of cash through operating activities. Cash flow from investing activities (CFI) (17.2) (3.6) Cash flow from financing

  29. Slide 29: Disclaimer

    Disclaimer Certain statements in this document are forward-looking statements, including, but not limited to, those using words such as “believe”, “assume”, “expect” and other similar expressions. Such forward-looking statements are based on assumptions and expectations and, by their nature, involve

  30. Slide 30: www.sensirion.com

    www.sensirion.com © Copyright Sensirion Holding AG, Switzerland

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