Sensirion Holding Ag · SIX:SENS
Sensirion — FY2023 Earnings Presentation
30 slides from Sensirion's earnings presentation, Mar 12, 2024
Slide 1: Full-Year 2023 Results
FULL-YEAR 2023 RESULTS Sensirion Holding Marc von Waldkirch, CEO Matthias Gantner, CFO 12 March 2024
Slide 2: Please note that this event will be recorded
Please note that this event will be recorded. 2 © Copyright Sensirion, Switzerland Confidential
Slide 3: Agenda
AGENDA Marc von Waldkirch Matthias Gantner Marc von Waldkirch Q&A CEO CFO CEO Full-year 2023 highlights Full-year 2023 Strategic focus financial review Trends Business review Outlook 2024 01 02 03 04 3 © Copyright Sensirion, Switzerland Confidential
Slide 4: Full-year 2023 overview
Full-year 2023 overview Business • Challenging market environment leads to a topline setback after three booming years 2020-2022 • Continued investments in R&D and Sales to work on the strong innovation pipeline and to enable significant product launches in new applications in 2024 and 2025. • This
Slide 5: Revenue (CHFm): 2023 setback after booming years 2020-2022
2023 setback after booming years 2020-2022 Revenue core Mobile business Business Review Medical One-Off special Items Gross margin 340 70% • Significant topline setback in 2023 after three booming 320 62% and very successful years of growth. 28 300 60% 280 54% 56% 58% 22 52% • In the core business,
Slide 6: Pro-active reaction on the challenging environment
Pro-active reaction on the challenging environment Actively shaping our future growth by investing into R&D- and Sales • The growth years 2020-2022 were enabled • By innovative environmental and flow sensor products, outperforming existing market solutions • By being ready to agilely react on convin
Slide 7: Automotive market
Automotive market growing business despite challenging market conditions Main results Revenue development (CHFm) FY 2023 revenue increased by 11% YoY to CHF 72.5m H2 2023 revenue increased by 17% HoH to CHF 39.1m 65.1 72.5 Above average revenue development in the automotive 33.3 39.1 sector which wa
Slide 8: Medical Markets
Medical Markets Normalized after several years of one-offs, but still resilient Main results Revenue development (CHFm) 76.1 FY 2023 revenue, reported decreased YoY by -41% to CHF 44.9m 1. One-Off Special 28.3 Business Adjusted for last year’s one-time effect (CHF 28.3m) 47.8 44.9 31.7 through the C
Slide 9: Industrial Markets
Industrial Markets strongly impacted by appliance downturn Main results Revenue development (CHFm) FY 2023 revenue decrease by -34% YoY to CHF 101.0m H2 2023 revenue increased by +8% HoH to CHF 52.4m Reduced demand mainly from the appliance sector that 153.8 101 benefitted the past 2 years over-prop
Slide 10: Consumer market
Consumer market strongly impacted by pandemic –driven “air quality over-consumption” Main results Revenue development (CHFm) FY 2023 revenue decreased by – 44% YoY to CHF 14.9m H2 2023 revenue decreased by -37% HoH to CHF 6.7m 26.7 Reduced demand which benefitted the past 2 years over- 14.9 proporti
Slide 11: Agenda
AGENDA Marc von Waldkirch Matthias Gantner Marc von Waldkirch Q&A CEO CFO CEO Full-year 2023 highlights Full-year 2023 Strategic focus financial review Trends Business review Outlook 01 02 03 04 11 © Copyright Sensirion, Switzerland Confidential
Slide 12: FY 2023 financials overview
FY 2023 financials overview Key financials Revenue EBITDA margin Gross margin Operating cash flow CHF 233.2m 4.3% 52.2% CHF -10.9m, -27.5% YoY free cash flow (-15.5% organic, -8.8% one- CHF -46.5m off, -3.2% FX) Confidential 12
Slide 13: Revenue development from FY 2022 to FY 2023
Revenue development from FY 2022 to FY 2023 Components of revenue growth (CHFm) Revenue FY 2023 • -27.5 % YoY sales decrease driven by • Absence of the medical one-off (CHF -28.3 m, H1 2022), as expected 350.0 321.7 • Market wide reduced demand in volumes and De-stocking across markets 300.0 28.3 28
Slide 14: Diversified Revenue Development Across all our End Markets
Diversified Revenue Development Across all our End Markets Revenue development (CHFm) FY 2023 (FY 2022) revenue distribution YoY +13.3% +11.9% change +48.3% 321.7 287.5 26.7 6.4% 43.3% 253.7 -27.5% (47.8%) (8.3%) Automotive 27.0 14.9 233.2 Medical 153.8 14.9 Industrial 71.2 131.4 Consumer 19.2% 31.1
Slide 15: Gross margin and opex development
Gross margin and opex development Gross profit and gross margin (CHFm / % of revenue) Gross profit and margin 2023 • YoY Margin decrease (-7.0ppts) due to lower utilization of 61.7% 59.2% capacities 52.2% • Unfavorable product mix impacts, i.e. weak high-margin CPAP- business 177.3 190.6 • High port
Slide 16: EBITDA development
EBITDA development EBITDA1 and EBITDA margin (CHFm / % of revenue) EBITDA FY 2023 31.7% 27.8% • EBITDA and EBITDA margin decreased due to weak demand (volumes), low of operational 91.1 89.6 4.3% utilization as well as continued investment in 10.1 R&D and Sales capacities. FY 2021 FY 2022 FY 2023 • S
Slide 17: Income statement
Income statement (CHFm / % of revenue) FY 2022 FY 2023 Revenue 321.7 233.2 Fin result Cost of sales (131.1) (111.4) • Mainly FX loss Gross profit 190.6 59.2% 121.8 52.2% realized loss -1.7 CHFm R&D expenses (50.8) (15.8%) (54.0) (23.2%) unrealized loss -4.1 CHFm SG&A expenses (65.4) (20.3%) (73.6) (
Slide 18: Net working capital and capital expenditures
Net working capital and capital expenditures Net working capital1 Net working capital FY 2023 26.9% 41.8% 19.8% • Proactive build up of wafer inventory to assure service level in case of shortage supply as well as to mitigate Taiwan/China risk 97.5 86.5 56.8 • Receivables: ongoing marginal debtors’
Slide 19: Continuing strong balance sheet
Continuing strong balance sheet As of 31 December 2022 As of 31 December 2023 Equity / total assets 85.0% Equity / total assets 88.8% Net cash1 CHF 123.0m Net cash1 CHF 73.1m Net cash / LTM EBITDA 1.4 Net cash / LTM EBITDA 7.2 Assets Liabilities and equity Assets Liabilities and equity Trade payable
Slide 20: Statement of cash flows
Statement of cash flows Condensed consolidated statement of cash flows CFO FY 2022 (CHFm) FY 2021 adj FY 2021 FY 2022 FY 2023 Cash flow from operating activities (CFO) 73.0 73.0 49.5 (-10.9) Cash flow from investing activities (CFI) (22.3) (34.3) (-35.6) • Impact of increase of net working capital o
Slide 21: Agenda
AGENDA Marc von Waldkirch Matthias Gantner Marc von Waldkirch Q&A CEO CFO CEO Full-year 2023 highlights Full-year 2023 Strategic focus financial review Trends Business review Outlook 01 02 03 04 21 © Copyright Sensirion, Switzerland Confidential
Slide 22: Economic environment and strategic focus
Economic environment and strategic focus Economic environment Company focus Return to growth path Megatrends: • Sensirion is confident to return to growth path in 2024, mainly driven by new Secular megatrends such as energy applications and projects efficiency, health and climate protection remain s
Slide 23: Medium- and long-term outlook remains positive
Medium - and long-term outlook remains positive Promising product and innovation pipeline, supported by secular megatrends Strong supportive megatrends such as energy efficiency, climate change and health, which are accelerating the increased use of sensors in numerous applications. Mid-term: Mid-te
Slide 24: US HVAC market transitions to low-GWP refrigerants
US HVAC market transitions to low-GWP refrigerants Market Driver Starting January 2025: US/North America: EPA or California Air Resources Board (CARB) will prohibit refrigerants with a GWP (Global warming potential) greater than 750 for new residential air conditioning equipment. Market Our A2L leak
Slide 25: Strategic achievements
Strategic achievements Execution to strategy on track and progressing well Strategic focuses Strategic achievements 2023 • Promising new product family of gas leakage sensors for air conditioners in the US market to be launched Focus 3: in H2/2024 Develop technologies for long-term • New projects ki
Slide 26: Outlook 2024
Outlook 2024 Assuming unchanged foreign currency exchange rates, we expect for FY 2024 In a market environment that remains challenging, we expect a return (CHFm) FY 2024 to growth in 2024 thanks to new projects starting up. In terms of profitability, 2024 will be a transitional year. The medi
Slide 27: Agenda
AGENDA Marc von Waldkirch Matthias Gantner Marc von Waldkirch Q&A CEO CFO CEO Full-year 2023 highlights Full-year 2023 Strategic focus financial review Trends Business review Outlook 01 02 03 04 27 © Copyright Sensirion, Switzerland Confidential
Slide 28: Q&A Thank you very much
Q&A THANK YOU VERY MUCH 28 © Copyright Sensirion, Switzerland Confidential
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
Slide 30: Sensirion
SENSIRION