Sensirion Holding Ag · SIX:SENS

Sensirion — H1 2019 Earnings Presentation

29 slides from Sensirion's earnings presentation, Aug 21, 2019

  1. Slide 1: Half-Year 2019 Results

    Half-Year 2019 Results Marc von Waldkirch, CEO Matthias Gantner, CFO 21 August 2019 © Copyright Sensirion Holding AG, Switzerland

  2. Slide 2: Agenda

    Agenda 1  Half-Year 2019 Highlights Marc von Waldkirch, CEO  Business Review 2  Half-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: H1 2019 Overview

    H1 2019 Overview  The current crisis in the automotive industry, the significantly weaker than expected global industrial production, and the continuing global trade disputes negatively impact demand in all end markets.  Newly ramping-up business can only partly compensate for the weaker demand. B

  4. Slide 4: Automotive H1 2019 Business Review

    Automotive H1 2019 Business Review Main results Revenue development (CHFm)  HY 2019 revenue decreased by 14.1% YoY to CHF 24.9m. Revenue in H1 2019 is comparable to H2 2018.  Declining revenue YoY resulted from weaker demand in the automotive industry combined with inventory optimization 29.0 24.9

  5. Slide 5: Medical H1 2019 Business Review

    Medical H1 2019 Business Review Main results Revenue development (CHFm)  With CHF 17.3m, revenue in H1 2019 decreased by 3.3% compared to H1 2018.  Revenues in the medical market are dominated by application of differential pressure sensors in CPAP devices, which 16.2 17.9 17.3 showed a very stron

  6. Slide 6: Industrial H1 2019 Business Review

    Industrial H1 2019 Business Review Main results Revenue development (CHFm)  H1 2019 revenue decreased by 4.3% YoY to CHF 35.0m.  Increased business from differential pressure sensors for HVAC and process control applications, and from natural gas 36.5 35.0 flow sensors for residential gas meters c

  7. Slide 7: Consumer H1 2019 Business Review

    Consumer H1 2019 Business Review Main results Revenue development (CHFm)  H1 2019 revenue decreased by 0.8% YoY to CHF 6.7m.  In similar fashion to the other markets, nervousness and uncertainty in connection with the geopolitical situation dampened stronger growth, and new projects were only just

  8. Slide 8: Expanded Portfolio of Environmental Sensors

    Expanded Portfolio of Environmental Sensors Highlights  Continued positive market response to the carbon dioxide (CO2) and particulate matter (PM2.5) sensors combined with first important design wins laid the foundation for continuous, sustainable growth of CO2 sensor revenues from these sensors in

  9. Slide 9: Go-to-Market Process

    Go-to-Market Process The go-to-market process of a new product involves several stages.  Typically, the design-in cycle time takes two to three years, followed by a continuous but moderate ramp-up.  Consequently, revenues from newly launched products are expected to become significant three to fou

  10. Slide 10: Agenda

    Agenda 1  Half-Year 2019 Highlights Marc von Waldkirch, CEO  Business Review 2  Half-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

    Financials Overview Key Financials  Revenue CHF 83.9m, -7.0% YoY.  Gross margin 53.2%.  Adjusted EBITDA margin 10.0%.  Operating cash flow CHF 11.1m, free cash flow CHF 1.0m. © Copyright Sensirion Holding AG, Switzerland 11

  12. Slide 12: Revenue Development from H1 2018 to H1 2019

    Revenue Development from H1 2018 to H1 2019 Components of revenue (CHFm) Revenue H1 2019  -7.0% YoY reduction, from all end markets, more pronounced in automotive market. 0.3% 0.3 (6.6) Foreign exchange effects (7.3%)  +0.3%, mainly from EUR and USD. 90.2 83.9 H1 2018 Organic contribution FX effec

  13. Slide 13: Gross Margin and Opex Development

    Gross Margin and Opex Development Gross profit and gross margin (%) (CHFm) 57.4% 53.2% Gross margin H1 2019 52.4%  Stable compared to H1 2018 and FY 2018. 39.9 47.3 44.6 R&D expenses H1 2019  Increased as % of revenue due to less revenue than expected H1 2017 H1 2018 H1 2019 due to demand reductio

  14. Slide 14: Adjusted EBITDA Development

    Adjusted EBITDA Development Depreciation and Amortization (CHFm) D&A D&A / Revenue Depreciation and Amortization 9.2% 8.1% 8.8%  D&A remained stable YoY and HoH. 6.4 7.3 7.4 Adjusted EBITDA H1 2019 H1 2017 H1 2018 H1 2019  Adjusted EBITDA margin suffered disproportionately from the decline in reve

  15. Slide 15: Income Statement

    Income Statement Condensed consolidated income statement (CHFm / % of revenue) One-time effects H1 2019 H1 2018  H1 2018: Mainly CHF 3.0m for external IPO costs Revenue 83.9 90.2 and CHF 5.1m for IPO Loyalty Share Program. Cost of sales (39.3) (42.9) Gross profit 44.6 53.2% 47.3 52.4%  H1 2019: Ma

  16. Slide 16: Net Working Capital and Capital Expenditures

    Net Working Capital and Capital Expenditures Net working capital1 (CHFm) NWC NWC / LTM revenue Net working capital H1 2019 23.5% 24.9% 24.7%  Increased YoY due to build-up of inventories towards end of 2018 in view of then expected growth for 2019. Compared to 39.7 43.5 41.6 31 December 2018, inven

  17. Slide 17: Continuing Strong Balance Sheet

    Continuing Strong Balance Sheet As of 30 June 2019 As of 31 December 2018 Equity / total assets 73.5% Equity / total assets 74.6% Net cash1 CHF 39.9m Net cash1 CHF 42.6m Net cash / LTM adjusted EBITDA 1.9 Net cash / LTM adjusted EBITDA 1.5 Assets Liabilities and Equity Assets Liabilities and Equity

  18. Slide 18: Free Cash Flow Development

    Free Cash Flow1 Development H1 2017 – H1 2019 H1 2019 (CHFm) (CHFm) FCF H1 2019 11.1  CFI includes cash flows of CHF 3.0m in connection with acquisition of electrochemical (EC) sensor tech. FCF conversion rate2 8.9  H1 2017 -37.0% (7.1)  H1 2018 59.3%3 1.0 (3.0) 1.0  H1 2019 11.4% (47.1%4) (4.2)

  19. Slide 19: Agenda

    Agenda 1  Half-Year 2019 Highlights Marc von Waldkirch, CEO  Business Review 2  Half-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: Customer Content and Application Penetration

    Customer Content and Application Penetration Mid-term growth develops along two dimensions:  Expansion of sensor portfolio enables continuing increase of content per application.  Simultaneously, the penetration rate per application continuously increases due to trickle-down effects. Content per a

  21. Slide 21: Examples of Increase of Customer Content

    Examples of Increase of Customer Content Automotive HVAC Home Appliances Air Purifier In-cabin climate control Demand-controlled ventilation (DCV) Air purifier RHT RHT, PM2.5, module DP DP, RHT, VOC, CO2 RHT, VOC RHT, VOC, PM2.5 RHT: Relative Humidity and Temperature, DP: Differential Pressure, VOC:

  22. Slide 22: Outlook

    Outlook As published on 11 July 2019, Sensirion reduced its outlook for the financial year 2019 as a result of the challenging market conditions. In spite of the currently difficult market conditions, the long-term market trends, the technology, and the product pipeline remain strong. Sensirion cons

  23. Slide 23: Upcoming Events

    Upcoming Events Date Event 10 March 2020 Financial Year 2019 Results and Annual Report 11 May 2020 Annual General Meeting 2020 Contact information Andrea Wüest Director Investor Relations Phone: +41 44 927 11 40 Email: andrea.wueest@sensirion.com © Copyright Sensirion Holding AG, Switzerland 23

  24. Slide 24: Agenda

    Agenda 1  Half-Year 2019 Highlights Marc von Waldkirch, CEO  Business Review 2  Half-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 H1 2019 (CHFm) (CHFm) H1 2019 H1 2018 Profit (loss) for the period (1.9) (2.0) 2.9 - Depreciation & amortization 7.4 7.3 - Net interest expenses, income taxes (0.7) 0.8 EBITDA 7.4 4.8 6.1 0.7 Adjusted for - Net finance costs excluding

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

    Diversified Revenue Development Across all our End Markets Revenue development H1 2019 (H1 2018) revenue distribution (CHFm) YoY growth +3.0% +29.6% (7.0%) 8.0% (7.5%) 29.7% 90.2 Automotive (32.2%) 6.8 83.9 Medical 6.7 41.7% Industrial (40.5%) 69.6 Consumer 20.6% 5.9 36.5 (19.8%) 35.0 30.3 21.3% 17.

  28. Slide 28: 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

  29. Slide 29: www.sensirion.com

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

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