March 21, 2019
FINANCIAL RESULT 2018: AT A GLANCE
We further succeed in implementing our strategy for profitable growth
Note: 1 Based on sales excl. this automotive customer sales. 2 Decrease in 2017 due to expired order of a special automotive customer (~€12m) which was mostly compensated for by new clients (~€7m).
FINANCIAL RESULT 2018: AT A GLANCE
Top-line growth & margin improvement based on dedicated measures
1Based on sales excl. sales of a special automotive customer
.
FINANCIAL RESULT 2018: P+L STATEMENT
Significant improvement of all relevant key figures has been achieved
| In € million |
2017 |
2018 |
Change |
| 1. Revenues |
147.5 |
155.1 |
7.6 |
| Other operating income |
3.3 |
2.6 |
-0.7 |
| Change in inventory |
-1.5 |
4.5 |
6.0 |
| Other own work capitalized |
2.5 |
2.0 |
0.5 |
| Cost of material |
-69.3 |
-76.1 |
-6.8 |
| 2. Gross profit |
82.5 |
88.1 |
5.6 |
| 3. Personnel expenses |
-46.6 |
-49.0 |
-2.5 |
| 4. Other operating expenses |
-16.3 |
-17.8 |
-1.5 |
| Operating result (EBITDA) |
19.6 |
21.3 |
1.6 |
| Depreciation and amortization |
-6.8 |
-6.8 |
|
| Operating result before goodwill amortization (EBITA) |
12.8 |
14.5 |
1.7 |
| Goodwill amortization |
-2.3 |
-2.2 |
|
| 5. Earnings before interest and tax (EBIT) |
10.6 |
12.2 |
1.7 |
| 6. Financial result |
-3.4 |
-1.8 |
1.6 |
| Income before tax (EBT) |
7.1 |
10.4 |
3.3 |
| Taxes |
-2.8 |
-2.9 |
-0.1 |
| Net income |
4.4 |
7.5 |
3.1 |
|
2.96% |
4.85% |
|
We continue in implementing our strategy for profitable growth
We further strengthen our international presence
Sales by target market in € million Commentary
- − Business has been expanded in the USA as well as in Canada
- − Asia's share of total sales climbed supported by the growth in China
| Sales region |
2017 |
2018 |
Change in % |
| DACH Region |
74.3 |
76.4 |
2.8 |
| Rest of Europe |
40.4 |
38.8 |
-4.0 |
| North America |
17.3 |
19.2 |
11.3 |
| Asia |
14.9 |
19.4 |
30.2 |
| Rest of World |
0.6 |
1.3 |
127.9 |
| Total |
147.5 |
155.1 |
5.2 |
Growth drivers: photonic and pressure sensors
Sales share product groups in % Commentary
Photonics Pressure Advanced Electronics
Photonics
- − LiDAR receivers for driver assistance systems, robots and drones
- − Customer-specific camera modules for industrial inspection and aerial surveillance
- − Embedded electronic control unit (ECU) for driver assistance systems
Pressure
- − Customer-specific pressure sensor component for industrial transmitters
- − Gas property sensor system for fast and efficient detection of gas mixtures
P+L STATEMENT: 1.REVENUES 80% order backlog scheduled for 2019
|
in € million |
|
|
Commentary |
Sales
2018
2017 |
Standard products
47.1
42.2 |
Sensor solutions
108.0
105.3 |
7.6 |
−
Demand for the First Sensor Group's sensors and sensor
solutions rises by 5.2%
−
Incoming orders totaled €159.6 million
−
The order backlog rose by €5.1 million to €97.6 million |
|
|
|
|
−
About 80.0% scheduled for 2019 |
|
Order Income |
|
|
|
| 2018 |
|
159.6 |
-4.1 |
|
| 2017 |
|
163.7 |
|
|
|
Order Backlog
Scheduled
for
current
year |
|
|
|
2017 2018 81% 19% 96.7 92.5 74% 26% 4.2
Our top 40 NBOs have a potential revenue of over €110m per year
P+L STATEMENT: 2.GROSS PROFIT
Gross profit with 52.9% slightly decreased due to higher inventories
| In € million |
|
Commentary |
Other Operating Income
2.6
2018 |
-0.7 |
−
Other operating income: investment grants and
changes in provisions |
2017
Change in Inventory |
3.3 |
−
Inventories: increase because of significantly
improved order situation/ the necessity of |
2018
Raw Material: 3.0
2017
2017
WIP: 0.0
Raw Material: -1.5 |
+1.4
WIP: 1.4 |
safeguarding supply capability |
Other Own Work Capitalized
2.0
2018 |
-0.5 |
−
Capitalized costs: development costs pursuant to IAS
38 accounted for €1.6 million of this sum |
2017
Cost of Material |
2.5 |
−
Cost of Material: rose due to increase in total
operating performance |
2018
2017 |
76.1
+6.8
69.3 |
−
Gross Profit: 52.9% (previous year: 53.3%) |
|
|
|
P+L STATEMENT: 3.PERSONNEL EXPENSES
Increased FTE through investing in production and R&D for growth
Employees in FTE
P+L STATEMENT: 4.OTHER EXPENSES
Other operating expenses increase slightly by € 1.5 million
2017 2018 Other Expenses Sales & marketing expenses Maintenance and repairs Cost of premises Breakdown 2018, Top 5 2.6 2.2 1.6 In € million 17.8 +1.5 16.3
1.2
1.2
Commentary
- − Increased costs for maintenance of buildings and production equipment
- − Increased recruitment costs for hiring qualified staff
- − Higher R&D expenses for investing in new product generations
- − More travel expenses due to internationalization
- − Warranty expenses decrease by 45.6%
- − Legal and accountancy fees decrease by 32.8%
Travel expenses
IT-costs
P+L STATEMENT: 5.EBIT EBIT increased by 16 %
EBIT in € million
P+L STATEMENT: 7.FINANCIAL RESULT
Foreign currency policy leads to improved financial result
FINANCIAL RESULT 2018: BALANCE SHEET Equity ratio rose by 1.4 %
BALANCE SHEET
Investments in capacities and new equipment for growth
- − Renovation of the sites Berlin-Weißensee, Oberdischingen and Dresden Klotzsche
- − New equipment for our Fab in Berlin-Oberschöneweide
- − 6-Inch-Equipment mainly implemented in 2017
- − Selected insourcing of production processes in Berlin
BALANCE SHEET: NET WORKING CAPITAL
DSO slightly improved due to reductions of overdues and factoring
BALANCE SHEET: CASHFLOW Group's liquidity position remains comfortable
In € million
| Cash Flow |
2017 |
2018 |
| Operating CF |
16.0 |
15.9 |
Investing
CF |
-12.5 |
-9.6 |
| Free CF |
3.5 |
6.3 |
| Financing CF |
-1.7 |
-3.4 |
| Total CF |
1.8 |
2.9 |
| Cash |
25.5 |
28.5 |
Commentary
- − Operating cash flow on same level as previous year
- − Cash flow from investing activities still reflects the high level of investment required by First Sensor
- − Investments largely related to new machinery and equipment (expanding vertical integration, process improvements and increasing capacity)
- − Cash flow from financing activities included the dividend distribution of €1.6 million
OUTLOOK FINANCIAL YEAR 2019 Focus on three key topics
Top Initiatives
- Further improvements of product pricing and costs
- − Product pricing: Net price policy; volume incentives
- − Product costs: Lead time reduction, scrap reduction, automation
- Cash Management: Net Working Capital Management
- − Inventory: WIP optimization
- − Receivables: DSO 30 days net overdue management
- Further improvement of reporting system for corporate management
- − From "gross profit reporting" to "cost of goods sold reporting"
- − Roll-out SAP at First Sensor Lewicki GmbH
- − Implementation CO-PA controlling tool for drill down price and cost analysis
STRATEGY FOR PROFITABLE GROWTH
We generate and utilize economies of scale in 4 dimensions
STRATEGY FOR PROFITABLE GROWTH
Dimension 1: Clear focus on our target markets
DIMENSION 1: CLEAR FOCUS ON OUR TARGET MARKETS We grow in megatrend driven target markets…
DIMENSION 1: CLEAR FOCUS ON OUR TARGET MARKETS …and focus on applications with most relevant contributions to growth
OUR STRATEGY FOR PROFITABLE GROWTH
Dimension 2: Clear focus on key customers and key products
DIMENSION 2: CLEAR FOCUS ON KEY CUSTOMERS
We have doubled sales with our key customers since 2014
DIMENSION 2: CLEAR FOCUS ON KEY CUSTOMERS
We have increased sales with our key products by 30% within 5 years
OUR STRATEGY FOR PROFITABLE GROWTH Dimension 3: Clear focus on forward integration
DIMENSION 3: CLEAR FOCUS ON FORWARD INTEGRATION System expertise along the value chain is a strong basis for our product offering
DIMENSION 3: CLEAR FOCUS ON FORWARD INTEGRATION We use 3 key growths drivers to expand our market position
STRATEGY FOR PROFITABLE GROWTH
Dimension 4: Clear focus on internationalization
DIMENSION 4: CLEAR FOCUS ON INTERNATIONALIZATION We expand our vertical and regional sales worldwide
Stra tegic roadm ap
Cross selling between solution & distribution sales Expand private label agreement
Leverage strong customer base
Cross selling between solution & distribution sales
Accelerate distribution business with local channel partners
Strengthen sales channel in Israel
Enrich direct sales with additional product/industry focused experts
Focus on identified prospective key accounts
Strengthen distribution partners for standard product sales
Higher volume of standard products via partner network
Stay focused on dedicated subset of target markets
Products & services fitting the market requirements
STRATEGY FOR PROFITABLE GROWTH Foundation: Operative Excellence
FOUNDATION: OPERATIVE EXCELLENCE Introduction of 6 inch wafer will substantially enhance productivity
FOUNDATION: OPERATIVE EXCELLENCE We actively utilize outsourcing for a flexible production network
STRATEGY FOR PROFITABLE GROWTH
We generate and utilize economies of scale in 4 dimensions
OUR GUIDANCE 2019 We continue to grow profitably…
OUR GUIDANCE 2019: SALES
…based on a high order backlog and new products ramping into volume
Opportunities Risks
OUR GUIDANCE 2019: EBIT MARGIN
Economy of scale and dedicated measures drive our profitability
Opportunities Risks
THANK YOU
Financial Statement Press Conference March 21, 2019 Dr. Dirk Rothweiler, CEO
Dr. Mathias Gollwitzer, CFO
First Sensor AG www.first-sensor.com/annual-report-2018