Inficon Holding Ag · SIX:IFCN

Inficon — FY2016 Earnings Presentation

30 slides from Inficon's earnings presentation, Mar 14, 2017

  1. Slide 1: Q4 2016 and Full Year 2016 Earnings Conference

    Q4 2016 and Full Year 2016 EARNINGS CONFERENCE March 14, 2017 Zürich, Switzerland

  2. Slide 2: Speakers

    Speakers Lukas Winkler, President and CEO  Key figures Q4 2016 and FY 2016  Target market business review  Expectations 2017 Matthias Tröndle, Vice President and CFO  Financials Q4 2016 and FY 2016  Distribution  Guidance Q4 2016 Earnings Conference March 14, 2017 2

  3. Slide 3: Lukas Winkler

    Lukas Winkler INFICON President and Chief Executive Officer

  4. Slide 4: Q4 2016 – Key Figures

    Q4 2016 – Key Figures  Sales increase in all markets, except General Vacuum (GV) • Consolidated sales increase of 21.3% to USD 86.2 million compared with Q4 2015, organic increase of 19.3% • Sequential sales increase over Q3 2016 of 10.2% • Book to bill ratio ~1  Operating result influenced by • I

  5. Slide 5: Net Sales by End Market

    Net Sales by End Market USD 86.2 million in Q4 2016 vs. USD 71.1 million a year ago (+21.3%) Q4 2016 Earnings Conference March 14, 2017 5

  6. Slide 6: FY 2016 – Key Figures

    FY 2016 – Key Figures  Sales increase in all markets, except General Vacuum (GV) • Consolidated sales increase of 11.1% to USD 309.7 million compared with 2015, organic increase of 9.4% • Book to bill ratio ~1  Operating result influenced by • High sales volume • Stronger gross margin and increase

  7. Slide 7: Semi & Vacuum Coating

    Semi & Vacuum Coating Solar, Display, Optics & Semiconductor Q4 2016 Sales to End Market Semi & Vacuum Coating  Sales Q4 2016 increase of 63% vs. Q4 2015 (in MUSD) 1.7% CAGR (2011 - 2016)  Sequential inrease of 24% 120.6  New annual sales record in FY2016, 110.7 mainly due to large investments in

  8. Slide 8: Security & Energy

    Security & Energy Q4 2016 Sales to End Market  Strong Q4 2016 Security & Energy 12.6% CAGR (2011 - 2016)  Sales increase 13% in Q4 2016 vs. Q4 (in MUSD) 2015 and decrease of 2% vs Q3 2016 35.9 33.1  2nd best year, due to sales to US and 28.6 27.2 Chinese government customers 22.1  Shipment bottl

  9. Slide 9: Refrigeration, Air Conditioning & Automotive

    Refrigeration, Air Conditioning & Automotive Q4 2016 Sales to End Market  Q4 2016 sales increase of 21% vs. Q4 Refrigeration, Air Conditioning & Automotive 6.2% CAGR (2011 - 2016) 2015 (some customer reclassifications) (in MUSD)  Sequential decrease of 2%; lower sales in 68.1 all regions 57.6 54.3

  10. Slide 10: General Vacuum

    General Vacuum Q4 2016 Sales to End Market General Vacuum  Q4 2016 sales decrease 14% vs. Q4 2015, -7.9% CAGR (2011 - 2016) mainly due to lower sales to European (in MUSD) distributors 132.6  Sequential increase of 4% 124.7 115.8 114.7  Customer reclassifications 101.8 87.9  Contributions from I

  11. Slide 11: Outlook 2017

    Outlook 2017 Positive – with mixed signals from the Security & Energy Market  Semiconductor market remains robust • Investments in new Fabs (China) and new Technologies (3D, <10nm, new Materials) • Increased forecasts for new equipment (OEM business) incl. EUV lithography  OLED flat panel display

  12. Slide 12: Matthias Tröndle

    Matthias Tröndle INFICON Vice President and Chief Financial Officer

  13. Slide 13: Sales (in USD million)

    Sales (in USD million) 86.2 86.2 FX‐Effect FX‐Effect 78.3 ‐0.1 MUSD -0.1 MUSD 71.1 +10.2% +21.3% Q4 15 Q4 16 Q3 16 Q4 16 All end-markets increased except General Vacuum and S&V General Vacuum increased, R&A and S&E slight decrease Q4 2016 Earnings Conference March 14, 2017 13

  14. Slide 14: Geographic Sales Breakdown – Quarter

    Geographic Sales Breakdown – Quarter (in USD million) Europe Asia-Pacific North America +33.1% 41.4 31.1 +42.4% ‐9.0% 24.5 21.2 48.0% 19.3 43.7% 17.2 29.8% 28.4% 22.4% 24.2% Q4 15 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Increase in Asia and in North America, decrease in Europe Q4 2016 Earnings Conference Marc

  15. Slide 15: Gross Profit, Costs, and Operating Income

    Gross Profit, Costs, and Operating Income Gross Profit Margin R&D (in MUSD) SG&A (in MUSD) Operating Income (in MUSD) +14.5% +64.7% 52.2% 20.0 325 17.4 18.2 49.0% bps +8.2% 11.1 6.3 6.8 15.6% 21.1% of NS of NS Q4 15 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16  Gross profit margin: Clearly improved ma

  16. Slide 16: Net Income and EPS development

    Net Income and EPS development Income Tax (in MUSD) Net Income (in MUSD) EPS (in USD, diluted) +49.1% 13.8 +47.4% 5.79 16.1% 9.3 of NS +196.6% 13.1% 3.93 4.0 of NS 1.4 Q4 15 Q4 16 Q4 15 Q4 16 Q4 15 Q4 16  Income tax: higher global tax rate of 22.6% driven by the mix in earnings and tax rates  Net

  17. Slide 17: Balance Sheet Highlights (in USD million)

    Balance Sheet Highlights (in USD million) Balance Sheet Structure 2016 MUSD 213.5 MUSD 213.5 Q4 16 Q4 15 Net Cash 63.9 60.9 25% Fixed assets DSO 47.4 45.6 Inventory Turns 3.8 3.6 5% Other non‐current assets Working Capital 20.7% 23.1% Equity 17% 79% Inventories Cash Flow 20% Receivables 3% Other cur

  18. Slide 18: Fiscal Year 2016 Results

    FISCAL YEAR 2016 RESULTS

  19. Slide 19: Full Year Sales (in USD million)

    Full Year Sales (in USD million) 309.7 +11.1% 278.7 120.6 97.2 22.1 33.1 57.6 68.1 101.8 87.9 FY 15 FY 16 Sales increase in all markets except General Vacuum; Organic increase of 9.4% Q4 2016 Earnings Conference March 14, 2017 19

  20. Slide 20: Geographic Sales Breakdown – Full Year

    Geographic Sales Breakdown – Full Year (in USD million) Europe Asia-Pacific North America +27.4% 102.6 +10.1% ‐6.9% 130.7 84.9 87.3 96.1 79.0 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 Increase in Asia-Pacific and North America, decrease in Europe Q4 2016 Earnings Conference March 14, 2017 20

  21. Slide 21: Gross Profit, Costs, Operating Income (YoY)

    Gross Profit, Costs, Operating Income (YoY) Gross Profit Margin R&D (in MUSD) SG&A (inMUSD) Operating Income (MUSD and % of Sales) +8.8% +9.6% 168 51.0 bps 50.4% 24.6 26.8 78.4 +28.3% 71.5 39.8 48.7% 8.8% 8.6% 14.3% 16.5% of NS of NS FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16  Gross profit mar

  22. Slide 22: Net Income and EPS development (YoY)

    Net Income and EPS development (YoY) Net Income (in MUSD) Income Tax (in MUSD) in % of Sales EPS (in USD, diluted) +34.1% +40.6% +33.2% 40.3 13.0% 30.1 9.9 16.94 7.1 10.8% 19.8% 12.72 19.0% FY 15 FY 16 FY 15 FY 16 FY 15 FY 16  Income tax: Increase due to EBIT development and mix in earnings and tax

  23. Slide 23: Key Balance Sheet data (YoY)

    Key Balance Sheet data (YoY) Operating Cash Flow CapExp Working Capital Equity Ratio ($M and % of Sales) ($M and % of Sales) ($M and % of Sales) 8.1% 17.2% 24.1% 23.1% 13.6% 83.6% 1.7% ‐475 bps 78.9% 22.7 71.5 53.4 67.2 37.8 5.3 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16  Operating cash flow: Increase

  24. Slide 24: Distribution Proposal

    DISTRIBUTION PROPOSAL

  25. Slide 25: Distribution 2016

    Distribution 2016  Strong Balance Sheet and Cash Generation  No debt (short-term and long-term)  USD 64 million cash  Shareholders’ equity ratio ~79%  Board of Directors intends to propose a cash distribution of CHF 16.00 per share  Annual General Meeting of Shareholders on April 11, 2017  To

  26. Slide 26: Guidance FY 2017 and Corporate Communication Calendar

    GUIDANCE FY 2017 AND CORPORATE COMMUNICATION CALENDAR

  27. Slide 27: Full Year 2017 Guidance

    Full Year 2017 Guidance Sales (MUSD) 320 297 293 305 310 279 Based on our current expectations for our end markets 2012 2013 2014 2015 2016 Guidance 2017 Sales > 320 MUSD Operating Income (MUSD) >17% 51 50 46 50 Op. Income > 17% 40 2012 2013 2014 2015 2016 Guidance 2017 Q4 2016 Earnings Conference M

  28. Slide 28: Corporate Calendar FY 2017

    Corporate Calendar FY 2017  Annual General Meeting Tuesday, April 11, 2017  Q1 2017 Earnings Conference Call Friday, April 21, 2017  Q2 2017 Earnings Conference Call Wednesday, July 26, 2017  Q3 2017 Earnings Conference Call Thursday, October 19, 2017  Q4 and FY 2017 Earnings Conference Call Ma

  29. Slide 29: Thank You! Q&A

    THANK YOU ! Q&A Q4 2016 Earnings Conference March 14, 2017 29

  30. Slide 30: Slide 30

Inficon — FY2016 Earnings Presentation on 6ix