Sensirion Holding Ag · SIX:SENS

Sensirion — H1 2018 Earnings Presentation

25 slides from Sensirion's earnings presentation, Aug 22, 2018

1. Slide 1: 2018 Half-Year Results

   2018 Half-Year Results Marc von Waldkirch, CEO Matthias Gantner, CFO 22 August 2018 © Copyright Sensirion AG, Switzerland

2. Slide 2: Agenda

   Agenda 1  Half-year 2018 highlights Marc von Waldkirch, CEO  Growth drivers  Business review 2  Half-year 2018 financial review Matthias Gantner, CFO 3  Q&A © Copyright Sensirion AG, Switzerland 2

3. Slide 3: Half-year 2018 Highlights

   Half-year 2018 Highlights  Revenue growth 30% YoY, of which 18% organic, 11% inorganic, 1% FX effects Business  Double-digit organic growth in all end markets  Successful IPO with strong demand  Revenue CHF 90.2m Financial  Adjusted EBITDA margin 17%  Free cash flow CHF 12.6m  Expected FY 201

4. Slide 4: Our Sensors Solve Complex Problems Everywhere

   Our Sensors Solve Complex Problems Everywhere  A rare pure-play sensor company  ~350,000 sensors produced per day, > 500m sensors sold worldwide  Well positioned to capture the growth in environmental and flow sensors, driven by structural megatrends and the IoT  Track record and culture of inno

5. Slide 5: Increasing Penetration of Environmental and Flow Sensors Driven by Secular Megatrends

   Increasing Penetration of Environmental and Flow Sensors Driven by Secular Megatrends Digitalization, automation, Energy efficiency Quality of life productivity increase  Scarcity of resources  Economic development  Digitalization and automation  Governmental and societal  Increasing awareness

6. Slide 6: Sensirion's Addressable Market

   Sensirion’s Addressable Market Two attractive categories of products, Addressable market forecasted to grow at double-digit rates (USDbn) Flow sensors CAGR 2.5 Flow sensors Environmental sensors 12%  End markets: Automotive, Medical, Industrial 0.8  Comprises differential pressure and flow sensors

7. Slide 7: Wide Range of Solutions across Diverse End Markets

   Wide Range of Solutions across Diverse End Markets End market Automotive Medical Industrial Consumer % of H1 2018 32% 20% 40% 8% revenue Humidity & Temperature (RHT) Gas Carbon     Dioxide (CO2) Particulate Matter (PM2.5) Environmental Auto Defogging Sensors Air Quality Natural Gas Differential

8. Slide 8: Automotive H1 2018 Business Review

   Automotive H1 2018 Business Review Highlights Revenue development (CHFm)  H1 2018 revenue increased by 69% YoY to CHF 29.0m  Organic growth 25% YoY, inorganic growth 44% YoY 7.5 inorganic  Organic growth driven by increased demand for RHT-sensors organic 18.2 17.2 21.5 for anti-fogging and climat

9. Slide 9: Medical H1 2018 Business Review

   Medical H1 2018 Business Review Highlights Revenue development (CHFm)  H1 2018 revenue increased by 11% YoY to CHF 17.9m  Growth driven by expansion of ongoing customer projects.  Sales from differential pressure sensors for continuous positive 15.5 16.2 17.9 airway pressure (CPAP) devices foremo

10. Slide 10: Industrial H1 2018 Business Review

    Industrial H1 2018 Business Review Highlights Revenue development (CHFm)  H1 2018 revenue increased by 21% YoY to CHF 36.5m  Strong increase of sales of RHT-sensors through distributors  Further growth from gas meter solutions, driven by Italian 36.5 27.9 30.3 market  In appliance market, first

11. Slide 11: Consumer H1 2018 Business Review

    Consumer H1 2018 Business Review Highlights Revenue development (CHFm)  H1 2018 revenue increased by 15% YoY to CHF 6.8m  Growth originating in increased sales of RHT-sensors for smart home applications through distributors. 5.9 5.9 6.8  Gas sensor (air quality sensor) incorporated in niche smart

12. Slide 12: Solid Development of New Product Lines

    Solid Development of New Product Lines Highlights  Gas sensor, launched in 2017, generated first revenues in H1 2018, as expected.  Carbon dioxide (CO2) sensor launched in H1 2018. Gas sensor Complements environmental sensor node, generated positive resonance from market.  Development of particul

13. Slide 13: Agenda

    Agenda 1  Half-year 2018 highlights Marc von Waldkirch, CEO  Growth drivers  Business review 2  Half-year 2018 financial review Matthias Gantner, CFO 3  Q&A © Copyright Sensirion AG, Switzerland 13

14. Slide 14: Revenue Growth from H1 2017 to H1 2018

    Revenue Growth from H1 2017 to H1 2018 Components of growth (CHFm) Revenue H1 2018 1% 11% 0.8  30% total growth 18% 7.5 12.3 Organic growth  18%, from all markets Inorganic growth 90.2 69.6  11%, from AIC acquisition Foreign exchange effects  1%, mainly from EUR and USD H1 2017 Organic growth In

15. Slide 15: Revenue, Gross Margin, Adjusted EBITDA Development

    Revenue, Gross Margin, Adjusted EBITDA Development Revenue and gross margin (%) (CHFm) 56% 57% 52% Gross margin H1 2018  Dilution because of acquisition of sensor module business of AIC and inventory write-down at SAS 90.2 67.6 69.6 (former AIC) H1 2016 H1 2017 H1 2018 Adjusted EBITDA H1 2018 Adj.

16. Slide 16: Income Statement

    Income Statement Condensed consolidated income statement (CHFm / % of revenue) R&D H1 2018 H1 2017 H1 2018 Revenue 69.6 90.2  Decreased because of dilution due to acquisition of AIC sensor module business Cost of sales (29.7) (42.9) Gross profit 39.9 57.4% 47.3 52.4% SG&A / Adjusted SG&A H1 2018 R&

17. Slide 17: Reconciliation of Profit (Loss) to Adjusted EBITDA

    Reconciliation of Profit (Loss) to Adjusted EBITDA Reconciliation H1 2018 (CHFm) H1 2017 H1 2018 (CHFm) Profit (loss) for the period 1.4 (2.0) 3.1 - Depreciation & amortization 6.3 7.3 - Net interest expenses, income taxes 2.4 0.8 0.7 5.1 EBITDA 10.1 6.1 Adjusted for 15.0 - Net finance costs excl. n

18. Slide 18: Net Working Capital and Capital Expenditures

    Net Working Capital and Capital Expenditures Net working capital1 (CHFm) Net working capital H1 2018 NWC NWC / LTM Revenue 23% 24% 21%  Increased YoY absolute and as % of LTM revenue because of AIC consolidation 30.5 39.7 26.1 Capex H1 2018 H1 2016 H1 2017 H1 2018  Capitalized R&D: 5.8% of R&D exp

19. Slide 19: Balance Sheet

    Balance Sheet As of 31 December 2017 As of 30 June 2018 Assets Liabilities and Equity Assets Liabilities and Equity Trade payables CHF 9m Lease liabilities CHF 12m Cash CHF 9m Trade payables CHF 3m Cash CHF 45m Lease liabilities CHF 11m Employee benefits CHF 28m Trade receivables CHF 21m Employee be

20. Slide 20: Free Cash Flows

    Free Cash Flows CFO Cash flow from operating activities CFI Cash flow from investing activities FCF Free cash flow1 H1 2017 H1 2018 (CHFm) (CHFm) FCF H1 2017 14.8 12.6  FCF conversion rate2 (37.0%) 3.7 FCF H1 2018 (5.9)  CFI in usual range (when excluding CHF 3.7m from AIC escrow 2.5 repayment of

21. Slide 21: Outlook

    Outlook Based on forecasting of our end markets, assuming macroeconomic and foreign currency conditions remain stable, we expect for FY 2018  Revenue CHF 175-180m (18-22% growth YoY)  Gross margin 52-54%  Adjusted EBITDA margin 15-16% © Copyright Sensirion AG, Switzerland 21

22. Slide 22: Upcoming Events

    Upcoming Events Date Event 07 March 2019 Full-year results 2018 14 May 2019 Annual General Meeting Contact information Andrea Wüest Director Investor Relations Phone: +41 44 927 11 40 Mail: andrea.wueest@sensirion.com © Copyright Sensirion AG, Switzerland 22

23. Slide 23: Agenda

    Agenda 1  Half-year 2018 highlights Marc von Waldkirch, CEO  Growth drivers  Business review 2  Half-year 2018 financial review Matthias Gantner, CFO 3  Q&A © Copyright Sensirion AG, Switzerland 23

24. Slide 24: 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

25. Slide 25: www.sensirion.com

    www.sensirion.com © Copyright Sensirion AG, Switzerland

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