Slide 1: We Lead the Future
WE LEAD THE FUTURE COMPANY PRESENTATION
Slide 2: Our Executive Board
OUR EXECUTIVE BOARD Dr. Rothweiler and Dr. Gollwitzer are experienced industry managers Dr. Dirk Rothweiler Dr. Mathias Gollwitzer CEO CFO since Jan. 1, 2017 since Aug. 10, 2015 appointed until Dec. 31, 2019 appointed until Aug. 9, 2022 2017 CEO, First Sensor AG 2015 CFO, First Sensor AG 2012 Vice P
Slide 3: First Sensor at a Glance
FIRST SENSOR AT A GLANCE
Slide 4: Our Competencies: chip & packaging expertise
OUR COMPETENCIES With chip & packaging expertise we offer standard sensors & solutions SEMICONDUCTOR PRODUCTION 30% STANDARD SENSORS SALES SHARE MICROELECTRONIC PACKAGING 70% SENSOR SOLUTIONS & SYSTEMS SALES SHARE www.first-sensor.com | 4
Slide 5: Our Competencies: photonics, pressure & advanced electronics
OUR COMPETENCIES We are an expert for photonics, pressure & advanced electronics 40% 45% 15% SALES Photonics SALES Pressure SALES Advanced Electronics SHARE SHARE SHARE www.first-sensor.com | 5
Slide 6: Our Presence: internationally positioned
OUR PRESENCE We are internationally positioned 76% 12% SALES SHARE 12% EUROPE SALES SHARE SALES SHARE ASIA NORTH AMERICA www.first-sensor.com | 6
Slide 7: Our Presence: three growing B2B markets
OUR PRESENCE Around the globe, we are active in three growing B2B markets 50% 20% 30% SALES SHARE SALES SHARE SALES SHARE INDUSTRIAL MEDICAL MOBILITY Length Measurement Breathing and respiration Advanced driver assistance systems Radiation and Security Dialysis OEM pressure sensors Sma
Slide 8: Industrial at a Glance
INDUSTRIAL AT A GLANCE We support customers’ increasing demand for industrial automation Sales revenues (EUR m)/CAGR Global Electronics Market (EUR bn) 3.8% +/-0% +6% +5% +4% 2014 2018e 2016 2017 2018 2019 Source: ZVEI Competitors Strategy New APD generation for autonomous machines Expanding pre
Slide 9: Medical at a Glance
MEDICAL AT A GLANCE We participate in the ongoing technical progress in medicine Sales revenues (EUR m)/CAGR Global Medtech Market (US-Dollar bn) 11.7% +5.5% +5.3% +5.1% +4.9% 2014 2018e 2018 2019 2020 2021 Source: Evaluate Ltd. Competitors Strategy Next generation H series Increasing production
Slide 10: Mobility at a Glance
MOBILITY AT A GLANCE We are a strategic partner for realizing a new idea of transportation Sales revenues (EUR m)/CAGR Light vehicles sales volume (m) 7.9% +3.2% +2.1% +3.0% +2.9% 2014 2018e 2018 2019 2020 2021 Source: AlixPartners Competitors Strategy Volume production with new camera family Se
Slide 11: Financial Figures at a Glance
FINANCIAL FIGURES AT A GLANCE We improved sales revenues, profitability and financial strength Sales revenues (EUR m)/CAGR EBIT (EUR m)/CAGR 6.4% 31.9% 10 2014 2018e 2014 2018e Net debt (EUR m) Earnings per share (EUR) - 15.8% + 0.70€ 2014 2018e 2014 2018e www.first-sensor.com | 11
Slide 12: Our Strategy for Profitable Growth
OUR STRATEGY FOR PROFITABLE GROWTH
Slide 13: Our Strategy for Profitable Growth
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component No
Slide 14: Our Strategy for Profitable Growth
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component No
Slide 15: Dimension 1: Industrial market marked by smart processes
DIMENSION 1: CLEAR FOCUS ON THREE TARGET MARKETS The industrial market is marked by smart processes Intelligent sensor systems control applications such as condition monitoring, predictive maintanance or human-machine collaboration. Source: Sick AG www.first-sensor.com | 15
Slide 16: Dimension 1: Medical market miniaturization & digital health
DIMENSION 1: CLEAR FOCUS ON THREE TARGET MARKETS The medical market is characterized by miniaturization & digital health Devices in the nanometer range for new applications, e.g. ventilators for home use, are no longer merely visions of the future. www.first-sensor.com | 16
Slide 17: Dimension 1: Mobility market new idea of transportation
DIMENSION 1: CLEAR FOCUS ON THREE TARGET MARKETS The mobility market is driven by a new idea of transportation The trend towards partially and fully autonomous vehicles is possible only thanks to sensor-based driver assistance systems. www.first-sensor.com | 17
Slide 18: Our Strategy for Profitable Growth
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component No
Slide 19: Dimension 2: Focus on Key Customers & Products
DIMENSION 2: CLEAR FOCUS ON KEY CUSTOMERS & PRODUCTS Why is this efficient? Key Customers Key Products 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 20: www.first-sensor.com | 20
www.first-sensor.com | 20
Slide 21: Giving Perspectives Together
Giving Perspectives Together ,
Slide 22: Our Strategy for Profitable Growth
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component No
Slide 23: Dimension 3: Focus on Forward Integration
DIMENSION 3: CLEAR FOCUS ON FORWARD INTEGRATION We base our forward integration initiatives on clear product roadmaps Radiation Pressure Acceleration Optical Level Flow Integrated Manufacturing Services Multi Sensor Systems www.first-sensor.com | 23
Slide 24: Thinking Joined-Up Together
Thinking Joined-Up Together
Slide 25: Going into Series Production Together
Going into, "4 » | Series Production = 1° Together. E#ik 274%
Slide 26: Our Strategy for Profitable Growth
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component No
Slide 27: Staying One Step Ahead Together
a ” Staying/One i Step Ahead Together.
Slide 28: High-pressure sensors
Responsi Together High-pressure sensors based on ! senstidge technology are suitable for pressure changes up to 3,000 bar. Our solutions are used in steer-by-wire systems, for ‘example ‘
Slide 29: Our Strategy for Profitable Growth
OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions 1 Target Markets 2 Key Products & Customers 3 Forward Integration 4 Internationalisierung Internationalization Key Germany Sensor System Industrial Products > 1 M€ p.a. Europe Sensor Medical Component No
Slide 30: The Fundament: Focus on Operative Excellence
THE FUNDAMENT: FOCUS ON OPERATIVE EXCELLENCE We have started six core initiatives to improve our operative excellence Top Initiatives T‘s & C‘s Harmonization Harmonized Core Processes OneERP Implemented at 4 sites, next 2 sites in 2019 Lead Time, On-Time Delivery, Quality Ongoing project P
Slide 31: 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 32: Growth Drivers
GROWTH DRIVERS
Slide 33: Growth Drivers: LiDAR, Camera, Pressure
GROWTH DRIVERS We concentrate on three growth drivers LiDAR Camera Pressure www.first-sensor.com | 33
Slide 34: Growth Drivers: LiDAR, Camera, Pressure
GROWTH DRIVERS We concentrate on three growth drivers LiDAR Camera Pressure www.first-sensor.com | 34
Slide 35: Growth Driver LiDAR: Main reasons for accidents
GROWTH DRIVER LIDAR Main reasons 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 issues 0.9 % S
Slide 36: Cars become more and more autonomous
GROWTH DRIVER LIDAR Therefore cars become more and more autonomous 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 (LKA) Autopilot on H
Slide 37: Sensors in vehicles provide more road safety
GROWTH DRIVER LIDAR Sensors in vehicles assist the driver and provide more road safety Long-Range Short-/ Medium- LiDAR Camera Ultrasound Radar Range Radar Surround View Blind Spot Emergency Detection Mirror Replacement Braking Cross Traffic Pedestrian Driver Alert Detection Rear Colission Park Moni
Slide 38: LiDAR important for safety applications
GROWTH DRIVER LIDAR LiDAR is an important technology for many of these safety applications Long-Range Short-/ Medium- LiDAR Camera Ultrasound Radar Range Radar Surround View Blind Spot Emergency Detection Mirror Replacement Braking Cross Traffic Pedestrian Driver Alert Detection Rear Colission Park
Slide 39: LiDAR provides highest resolution at large distances
GROWTH DRIVER LIDAR Reason: LiDAR provides the highest resolution even for large distances Radar Cameras LiDAR Criteria Short Long Ultra-sonic PMD (pulsed ToF) Mono Stereo distance distance 40 - 60 Max range (m) 150 -250 55 - 100 150 - 200 2-4 60 7 - 10 (120 coarse) Min range (m) 1 0,25 - 1 1 0.25 0
Slide 40: First Sensor important supplier for LiDAR detectors
GROWTH DRIVER LIDAR First Sensor is an important supplier for detectors in LiDAR systems Source: YOLE www.first-sensor.com | 40
Slide 41: LiDAR: eight key respects
GROWTH DRIVER LIDAR In our LiDAR business we stand out through eight key respects 1 2 3 4 Customizing capability 20+ years experience ISO TS 16949 certified Chip & packaging for die, package and in APDs production and testing company modules in-house 5 6 7 8 Highest sensitivity AEC-Q 101 qualified L
Slide 42: Leading APD share for more than 10 years
GROWTH DRIVER LIDAR With our APD we have captured a leading share 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 FIS … 2005
Slide 43: Participating in driver assist market growth
GROWTH DRIVER LIDAR Therefore we will participate in the growth of the driver assist market Global driver assist market will grow to $102 billion by 2030 2017: 94 m vehicles produced (2.2% CAGR 17-22, 2017 IHS Markit) Automotive semiconductor revenue for ADAS grows with 20.9% (CAGR 17-22, 2017 I
Slide 44: Growth Drivers: LiDAR, Camera, Pressure
GROWTH DRIVERS We concentrate on three growth drivers LiDAR Camera Pressure www.first-sensor.com | 44
Slide 45: Cameras irreplaceable for safe surround view
GROWTH DRIVER CAMERA Besides LiDAR, cameras are irreplaceable for a safe surround view On Board Sensor Capability LIDAR Camera RADAR V2X & Map & (Detection & (Monitoring & (Detection & Cellular* Location ranging) classification) ranging) (Information) (Information) Detection Traffic objects Car/Truc
Slide 46: Cameras support and complement LiDAR
GROWTH DRIVER CAMERA They support and complement LiDAR functionalities Long-Range Short-/ Medium- LiDAR Camera Ultrasound Radar Range Radar Surround View Blind Spot Emergency Detection Mirror Replacement Braking Cross Traffic Pedestrian Driver Alert Detection Rear Colission Park Monitoring Park Warn
Slide 47: Camera: eight key respects
GROWTH DRIVER CAMERA In our camera business we stand out through eight key respects 1 2 3 4 Specialist for harsh Tailor maid solutions Long-standing camera Automotive network environment and low- also possible in small- experience in new markets light applications scale production 5 6 7 8 New indust
Slide 48: Many years of experience in camera development
GROWTH DRIVER CAMERA We have many years of experience in the development of cameras Quiet Wire Embedded System for Ethernet camera for Automotive iCAM Ethernet Robust camera applications like Analog monitoring/security iCAM with Micrel and interface and for construction surround view, mirror camera
Slide 49: Participating in the growing camera market
GROWTH DRIVER CAMERA With our expertise we participate in the growing camera market www.first-sensor.com | 49
Slide 50: Focus on target customers & leads
GROWTH DRIVER CAMERA Our focus is on target customers & leads with significant annual sales Segments ADAS Systems LIDAR Cameras Camera Systems Multiple Sensors Sensor Fusion Customers Car OEM & Components Customized cameras Tier 1 Commercial & Special vehicles Components, Standard cameras, Surround
Slide 51: Growth Drivers: LiDAR, Camera, Pressure
GROWTH DRIVER We concentrate on three growth drivers LiDAR Camera Pressure www.first-sensor.com | 51
Slide 52: Broad range from ultra-low to high pressure sensors
GROWTH DRIVER PRESSURE We offer a broad range from ultra-low to high pressure sensors sensEdge sensors Transmitter H-Family L-Family 1 mbar 10 mbar 100 mbar 1 bar 10 bar 100 bar 1.000 bar 100 Pa 1 kPa 10 kPa 100 kPa 1 MPa 10 MPa 100 MPa 0,015 psi 0,15 psi 1,5 psi 15 psi 150 psi 1.500 psi 15.000 psi
Slide 53: Value chain from chip to sensor systems
GROWTH DRIVER PRESSURE We cover the value chain from chip to sensors and sensor systems Systems or OEM Products Multi sensor systems (Process) Transmitters Oil filled SSO/SSI Customer sensEdge Module dry package L/H-Platform Component Chip www.first-sensor.com | 53
Slide 54: Pressure business driven by megatrends
GROWTH DRIVER PRESSURE Our pressure sensors business is driven by megatrends, too Smart Factory Smart Health Green Mobility Global market ($100 mn) Global light vehicle assembly & Source: MarketsAnd Markets, KESSIA Global market ($100 mn) share of alternative drives (mn units) 566 Source: PwC Autofa
Slide 55: Financial Key Figures 9M Interim Report
FINANCIAL KEY FIGURES 9M INTERIM REPORT
Slide 56: Sales up 6.4% on previous year
FINANCIAL KEY FIGURES We reported sales up 6.4% on the previous year’s figure Total sales in € million 115.1 82.1 92.2 102.6 114.8 108.2 9M 2013 9M 2014 9M 2015 9M 2016 9M 2017 9M 2018 www.first-sensor.com | 56
Slide 57: Sales by target market
FINANCIAL KEY FIGURES Demand in Industrial, Medical & Mobility markets increases constantly Sales by target market in € million INDUSTRIAL MEDICAL MOBILITY 114.8 115,1 108.2 102.6 92.2 36.8 31.5 32.3 29.2 25.8 25.8 17.3 24.1 20.4 15.6 50.8 56.2 53.8 55.5 57.8 9M 2014 9M 2015 9M 2016 9M 2017 9M 2018
Slide 58: Sales by region
FINANCIAL KEY FIGURES We are moving forward with our internationalization Sales by region in % 0,4% 0,4% 0,4% 0,7% 9,7% 8,6% 9,9% 11,9% 5,2% 7,6% 10,5% 11,9% 49,7% 52,3% 50,6% 50,9% 32,4% 32,8% 28,3% 25,8% 9M 2015 9M 2016 9M 2017 9M 2018 DACH region Rest of Europe North America Asia Rest of World ww
Slide 59: First results in the EBIT line
FINANCIAL KEY FIGURES Our strategy for profitable growth shows first results in the EBIT line 10 8,0 % EBIT in € million EBIT margin in % 7.3% 7.5% 9 6.9% 7,0 % 8 6,0 % 7 5.1% 5,0 % 6 4.3% 5 4,0 % 4 3,0 % 3 2.2% 2,0 % 2 11.8 % 10.1 % 1,0 % 1 4.7 8.4 3.5 2.3 7.5 8.6 0 0,0 % 9M 2013 9M 2014 9M 2015 9M
Slide 60: Net profit and earnings per share
FINANCIAL KEY FIGURES This success is also reflected by our net profit and earnings per share 6000 Net profit for the period in € million Earnings per share (EUR) 0.55 0.54 5000 4000 3000 0.28 0.23 2000 1000 0.12 0.02 1.4 2.6 0.4 5.9 3.0 5.7 0 9M 2013 9M 2014 9M 2015 9M 2016 9M 2017 9M 2018 www.firs
Slide 61: Working capital
FINANCIAL KEY FIGURES Our working capital is up due to higher stocks securing further growth Working Capital in € million 41.1 44.5 39.2 40.0 31.6 29.0 9M 2013 9M 2014 9M 2015 9M 2016 9M 2017 9M 2018 www.first-sensor.com | 61
Slide 62: Operating cash flow
FINANCIAL KEY FIGURES Therefore our operating cash flow is further reduced Operating cash flow in € million 10.4 8.8 7.9 102.6 92.2 5.6 4.1 9M 2013 9M 2014 9M 2015 9M 2016 9M 2017 9M 2018 -1.1 www.first-sensor.com | 62
Slide 63: Free cash flow
FINANCIAL KEY FIGURES At the same time we improved our free cash flow slightly Free cash flow in € million 5.0 4.0 3.2 9M 2013 9M 2014 9M 2015 9M 2016 9M 2017 9M 2018 -2.0 -2.3 -5.3 www.first-sensor.com | 63
Slide 64: Improved financial strength
FINANCIAL KEY FIGURES In total we have continously improved our financial strength 90.000 86.3 Shareholders' equity in € million Equity ratio in % 80.2 80.000 76.8 73.9 73.1 71.2 70.000 60.000 53.3 50.000 49.7 50.7 48.3 49.0 49.2 40.000 30.000 20.000 10.000 0 9M 2013 9M 2014 9M 2015 9M 2016 9M 2017
Slide 65: Reduced net debt
FINANCIAL KEY FIGURES This is also reflected by a reduced net debt Net debt in € million 35.0 36.1 31.2 29.4 27.5 26.9 9M 2013 9M 2014 9M 2015 9M 2016 9M 2017 9M 2018 www.first-sensor.com | 65
Slide 66: The Share
THE SHARE
Slide 67: First Sensor Share back on track
FIRST SENSOR SHARE Despite turbulences at stock exchanges our share is back on track 180,00 First Sensor TecDAX Prime All Share 160,00 140,00 120,00 100,00 80,00 60,00 01.12.2017 01.01.2018 01.02.2018 01.03.2018 01.04.2018 01.05.2018 01.06.2018 01.07.2018 01.08.2018 01.09.2018 01.10.2018 01.11.2018
Slide 68: Main investor considering sale; Goldman Sachs assigned
FIRST SENSOR SHARE Our main investor is considering to sell its shares; we have assigned Goldman Sachs to accompany this process Key facts* Market Cap: € 189.5 m Traded Stocks/Day: 22,897 30 Day High: €19.75 30 Day Low: €14.00 Index Ranking Free Float 60 Market Capitalization: Index Ranking Turnover
Slide 69: Financial Calendar
FINANCIAL CALENDAR
Slide 70: Financial Calendar
FINANCIAL CALENDAR The Oddo BHF Forum in Lyon is your next possibility to meet us When?* What? 10./11.01.2019 Oddo BHF Forum 2019, Lyon 19./20.02.2019 Oddo BHF German Conference 2019, Frankfurt 21.03.2019 Annual Report 2018 & Press Conference, Berlin 03.05.2019 Annual General Meeting 2019, Berlin 14
Slide 71: We Lead the Future
WE LEAD THE FUTURE 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 with regard to possible future developments at the company. All future-ori