Slide 1: We Lead the Future
WE LEAD THE FUTURE ANNUAL GENERAL MEETING I May 23, 2018
Slide 2: Report of the Executive Board: Successes 2017, Business Development 2018
REPORT OF THE EXECUTIVE BOARD SUCCESSES 2017, BUSINESS DEVELOPMENT 2018 Dr. Mathias Gollwitzer, CFO
Slide 3: Company value increased by 50% in 2017
SUCCESSES 2017 We increased our company value by 50 % in 2017 Dec 31, 2017 € 21.75 Jan 1, 2017 € 14.50 01.01.2017 01.02.2017 01.03.2017 01.04.2017 01.05.2017 01.06.2017 01.07.2017 01.08.2017 01.09.2017 01.10.2017 01.11.2017 01.12.2017 First Sensor TecDAX Prime All Share www.first-sensor.com | 3
Slide 4: 2017 above plan, profitability increased at lower revenues
SUCCESSES 2017 2017 above plan, profitability increased at lower revenues Sales in € million EBIT margin in % 160.0 12.0 140.0 150.1 147.5 10.0 120.0 137.7 (140- 124.0 145) 8.0 100.0 108.5 80.0 6.7 7.2 (5-6) 6.0 60.0 4.0 40.0 3.3 2.0 20.0 2.5 0.0 0.9 0.0 2013 2014 2015 2016 2017 Sales revenues EBIT
Slide 5: Major part of business shaped by industry customers
SUCCESSES 2017 The major part of the business is shaped by customers from industry Innovative solutions Reliable technology New ideas for for the automation whenever it's needed intelligent mobility of industry Sales share Sales share Sales share 51% 19% 30% www.first-sensor.com | 5
Slide 6: Germany & Europe stay important, USA & China growing
SUCCESSES 2017 Germany & Europe stay important markets, USA & China are growing Sales share Sales share Sales share North America Europe Asia 12 % 78 % 10 % www.first-sensor.com | 6
Slide 7: Slight increase of staff cost, virtually constant FTE
SUCCESSES 2017 Slight increase of staff cost, virtually constant FTE 845 FTE 850 FTE Wages and salaries in € milion 41 52 2017 46.6 Temporarily Staff (FTE) 2016 44.1 0.0 10.0 20.0 30.0 40.0 50.0 Permanent Staff (FTE) Distribution of employee functions 804 798 Produktion 476 Verwaltung 133 Vertrieb 9
Slide 8: Other operating expenses reduced
SUCCESSES 2017 Other operating expenses reduced in € million Other operating expenses Top 5 cost items 2017 Raumkosten 2.8 2017 16.3 Sales & Marketing 2.5 2016 17.3 Instandhaltung und Reparaturen 1.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Rechtsberatung und Beratung 1.1 IT 1.1 0 1 2 3 www
Slide 9: Expanded investments in tangible and intangible assets
SUCCESSES 2017 Expanded investments in tangible assets & intangible assets in € million 0.2 0.3 4.19 2.4 1.5 2.86 8.98 2.3 2.4 3.81 Rationalisierungsmaßnahmen Rationalization measures gesetzliche Notwendigkeit Legal requirements 2016 2017 sonstige Other Ersatzinvest Replacement investment Tangible a
Slide 10: Improved liquidity, reduced debts
SUCCESSES 2017 Improved liquidity, reduced depts in € million Cash Net dept 23.8 25.5 24.4 22.8 Dec 31, 2016 Dec 31,2017 Dec 31, 2016 Dec 31, 2017 www.first-sensor.com | 10
Slide 11: Net profit: shareholders participate in success
SUCCESSES 2017 Net profit: We want our shareholders to participate in our success €4.1 M Net profit €1.64 M €2.43 M Disbursement Retained earnings www.first-sensor.com | 11
Slide 12: Q1 behind expectations due to SAP, compensation during the year
BUSINESS DEVELOPMENT 2018 Q1 behind expectations due to SAP, compensation during the year 50 12.0 % Sales in € million 10.4 EBIT margin in % 10.0 % 40 7.8 8.0 % 30 5.1 6.0 % 4.4 4.6 20 3.1 4.0 % 10 2.0 % 35.4 34.3 34.6 39.3 39.3 11.8 % 34.5 0 10.1 % 0.0 % Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Sales re
Slide 13: Growth indicators remain positive
BUSINESS DEVELOPMENT 2018 Growth indicators remain positive in € million Order backlog Q1 2018 97.3 2017 92.6 2016 82.2 0 20 40 60 80 100 120 140 160 180 Incoming orders Q1 2018 39.3 2017 35.1 163.7 2016 31.4 132.9 0 10 20 30 40 50 NBOs Q1 2018 344.3 2017 253.6 2016 182.8 0 50 100 150 200 250 300 35
Slide 14: Improved profitability with revenue growth at 8.5%
BUSINESS DEVELOPMENT 2018 Improved profitability with revenue growth at 8.5 % SALES REVENUES 150 - 160 MILLION EURO EBIT MARGIN 7-9 PERCENT www.first-sensor.com | 14
Slide 15: Strategy for Profitable Growth & Growth Driver Autonomous Driving
REPORT OF THE EXECUTIVE BOARD STRATEGY FOR PROFITABLE GROWTH & GROWTH DRIVER AUTONOMOUS DRIVING Dr. Dirk Rothweiler, CEO
Slide 16: We generate and utilize economies of scale
STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale 1 Target Markets 2 Key Customers & Products 3 Forward Integration 4 Internationalisierung Internationalization Germany Key Sensor System Industrial Customers > 1 M € p.a. Sensor Europe Medical Key Component North Amerika Produ
Slide 17: 1st pillar: Focus on our target markets
STRATEGY FOR PROFITABLE GROWTH 1st pillar : Focus on our target markets 1 Target Markets 2 Key Customers & Products 3 Forward Integration 4 Internationalisierung Internationalization Germany Key Sensor System Industrial Customers > 1 M € p.a. Sensor Europe Medical Key Component North Amerika Product
Slide 18: Going into Series Production: Avalanche Photodiodes
Going into 5 Series Productioh -; Together. ! ‘Avalanche Photodiodes Our high-performance diodes ‘measure light pulses in the leading manufacturers, First Sensor also develops and produces array solutions for LIDAR systems.
Slide 19: 2nd pillar: Expansion of key products and key customers
STRATEGY FOR PROFITABLE GROWTH 2nd pillar: Expansion of key products and key customers 1 Target Markets 2 Key Customers & Products 3 Forward Integration 4 Internationalisierung Internationalization Germany Key Sensor System Industrial Customers > 1 M € p.a. Sensor Europe Medical Key Component North
Slide 20: Advantages of concentration on higher volumes
2ND PILLAR: EXPANSION OF KEY PRODUCTS AND KEY CUSTOMERS Advantages of concentration on higher volumes 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 21: Expansion of the key products business
EXPANSION OF THE KEY PRODUCTS BUSINESS Increase of number and sales revenues with key products 35,000 k€ 14 30,000 k€ 12 25,000 k€ 10 20,000 k€ 8 15,000 k€ 6 10,000 k€ 4 5,000 k€ 2 k€ 0 2013 2014 2015 2016 2017 Number key products Sales revenues key products www.first-sensor.com | 21
Slide 22: www.first-sensor.com | 22
www.first-sensor.com | 22
Slide 23: Expansion of the key customers business
EXPANSION OF THE KEY CUSTOMERS BUSINESS Increase of number and sales revenues with key customers 100,000 k€ 50 90,000 k€ 45 80,000 k€ 40 70,000 k€ 35 60,000 k€ 30 50,000 k€ 25 40,000 k€ 20 30,000 k€ 15 20,000 k€ 10 10,000 k€ 5 k€ 0 2013 2014 2015 2016 2017 Number key customers Sales revenues key cus
Slide 24: Giving Perspectives Together
Giving Perspectives 4© ~ Together be
Slide 25: 3rd pillar: Accelerate forward integration
STRATEGY FOR PROFITABLE GROWTH 3rd pillar: Accelerate forward integration 1 Target Markets 2 Key Customers & Products 3 Forward Integration 4 Internationalisierung Internationalization Germany Key Sensor System Industrial Customers > 1 M € p.a. Sensor Europe Medical Key Component North Amerika Produ
Slide 26: Based on clear roadmaps we expand our expertise
3RD PILLAR: ACCLERATE FORWARD INTEGRATION Based on clear roadmaps we expand our expertise Light Level Pressure Radiation Flow Acceleration Integrated Manufacturing Service Multi Sensor Systems www.first-sensor.com | 26
Slide 27: Thinking Joined-Up Together
Thinking Joined-Up Together
Slide 28: 4th pillar: Continuous internationalization
STRATEGY FOR PROFITABLE GROWTH 4th pillar: Continuous internationalization 1 Target Markets 2 Key Customers & Products 3 Forward Integration 4 Internationalisierung Internationalization Germany Key Sensor System Industrial Customers > 1 M € p.a. Sensor Europe Medical Key Component North Amerika Prod
Slide 29: We concentrate internationalization on growing regions
4TH PILLAR: CONTINUOUS INTERNATIONALIZATION We concentrate internationalization on growing regions + 1.9 % + 1.9 % + 2.1 % + 1.9 % +1.0 % + 6.4% +3.0% Source: OECD www.first-sensor.com | 29
Slide 30: Staying One Step Ahead Together
Staying, One Step Ahead o . Together
Slide 31: Responsibility Together
Responsibility _ Together >
Slide 32: The Fundament: focus on operative excellence
STRATEGY FOR PROFITABLE GROWTH The Fundament: focus on operative excellence 1 Target Markets 2 Key Customers & Products 3 Forward Integration 4 Internationalisierung Internationalization Germany Key Sensor System Industrial Customers > 1 M € p.a. Sensor Europe Medical Key Component North Amerika Pro
Slide 33: Our 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 34: Portfolio consolidation: case study for one product family
THE FUNDAMENT: FOCUS ON OPERATIVE EXCELLENCE Portfolio consolidation: Casestudy for one selected product family PRODUCTS Top Measures A products B products C products Threshold order quantities for new products 11 % 8% 5% A customers products Minimum order quantities for existing products 69 %
Slide 35: Objective: We generate and utilize economies of scale
STRATEGY FOR PROFITABLE GROWTH Objective: We generate and utilize economies of scale 1 Target Markets 2 Key Customers & Products 3 Forward Integration 4 Internationalisierung Internationalization Germany Key Sensor System Industrial Customers > 1 M € p.a. Sensor Europe Medical Key Component North Am
Slide 36: Autonomous driving is a driver of our growth strategy
STRATEGY FOR PROFITABLE GROWTH Autonomous driving is a driver of our growth strategy 1 Target Markets 2 Key Customers & Products 3 Forward Integration 4 Internationalisierung Internationalization Germany Key Sensor System Industrial Customers > 1 M € p.a. Sensor Europe Medical Key Component North Am
Slide 37: Main reason for accidents are preventable human mistakes
AUTONOMOUS DRIVING AS GROWTH DRIVER 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
Slide 38: Cars on higher autonomous levels need more sensors
AUTONOMOUS DRIVING AS GROWTH DRIVER Cars on higher autonomous levels need more sensors 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
Slide 39: We focus on LIDAR and camera applications
AUTONOMOUS DRIVING AS GROWTH DRIVER We focus on LIDAR and camera applications Mid range LiDAR Front View Mirror replacement Rear View accident avoidance Sign recognition Blind spot detection Park assist accident reduction Pedestrian detection Avoid mirrors Collision warning pedestrian protection Lan
Slide 40: LIDAR and camera are irreplaceable for surround view
AUTONOMOUS DRIVING AS GROWTH DRIVER LIDAR and camera are irreplaceable for surround view On Board Sensor Capability LIDAR Camera RADAR V2X & Map & (Detection & (Monitoring & (Detection & Cellular* Location ranging) classification) ranging) (Information) (Information) Detection Road users Car / Truck
Slide 41: LIDAR: Our APD is an important component for more than 10 years
AUTONOMOUS DRIVING AS GROWTH DRIVER LIDAR: Our APD is an important component 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 by
Slide 42: Camera: Volume production of a new generation just started
AUTONOMOUS DRIVING AS GROWTH DRIVER Camera: Volume production of a new generation just started Quiet Wire Ethernet camera for Automotive iCAM Ethernet Robust camera Analog monitoring/security iCAM with Micrel and interface and 2 Mpx LVDS for construction camera harsh with high environment reference
Slide 43: LIDAR and camera: automotive and industrial applications are versatile
LIDAR AND CAMERA Automotive and industrial applications are versatile Automotive www.megatechnews.com Industrial www.first-sensor.com | 43
Slide 44: Our innovation and excellence is your success
„OUR INNOVATION AND EXCELLENCE IS YOUR SUCCESS.“ WE APPROXIMATE THIS ASPIRATION GRADUALLY. As a leading international sensor manufacturer, we will achieve 10% average growth and a 10% EBIT margin with tailor-made customer-specific sensor solutions and innovative platform-based standard products, the
Slide 45: We Lead the Future
WE LEAD THE FUTURE Report Of The Executive Board, Annual General Meeting 2018 May 23, 2018 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 wi