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First Sensor AG

Investor Presentation Nov 26, 2018

159_ip_2018-11-26_67fdfae3-91ce-4cb0-bf10-66d852787d67.pdf

Investor Presentation

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WE LEAD THE FUTURE

COMPANY PRESENTATION

OUR EXECUTIVE BOARD Dr. Rothweiler and Dr. Gollwitzer are experienced industry managers

Dr. Dirk Rothweiler CEO

since Jan. 1, 2017 appointed until Dec. 31, 2019

  • 2017 CEO, First Sensor AG
  • 2008 Executive Vice President Optical Systems, Jenoptik AG
  • 2005 Vice President Sales and Service, TCZ
  • 2000 Managing Director Asia-Pacific, Süss Microtec Co. Ltd.
  • 1999 Director Sales & Marketing, Süss Microtec AG
  • 1995 Project Manager for the Semiconductor Technology Division, Carl Zeiss
  • 1995 Doctorate from the Department of Engineering, RWTH Aachen

Dr. Mathias Gollwitzer CFO

since Aug. 10, 2015 appointed until Aug. 9, 2022

2015 CFO, First Sensor AG
2012 Vice President Group Controlling, EnBW Energie
Baden-Württemberg AG
2008 CFO, Mercedes-Benz France SAS
2006 Director Corporate Controlling, DaimlerChrysler AG
2005 CFO, DaimlerChrylser Belgium/Luxembourg NV/SA
2002 Director Research and Technology, Daimler AG
1999 CEO, Temic Sprachverarbeitung
GmbH
1995 Director Division Controlling, Telefunken Systemtechnik
GmbH
1992 Expert Adviser Finance/Controlling, Deutsche Aerospace AG

FIRST SENSOR AT A GLANCE

OUR COMPETENCIES With chip & packaging expertise we offer standard sensors & solutions

SEMICONDUCTOR PRODUCTION

MICROELECTRONIC PACKAGING

OUR COMPETENCIES

We are an expert for photonics, pressure & advanced electronics

OUR PRESENCE We are internationally positioned

OUR PRESENCE Around the globe, we are active in three growing B2B markets

  • Length Measurement
  • Radiation and Security
  • Smart Building
  • Industrial Process Control
  • Aerospace

SALES SHARE MEDICAL 20%

  • Breathing and respiration
  • Dialysis
  • Endoscopy
  • Diagnostics

  • Advanced driver assistance systems

  • OEM pressure sensors

INDUSTRIAL AT A GLANCE

We support customers' increasing demand for industrial automation

Strategy

  • New APD generation for autonomous machines
  • Expanding pressure business in Asia with H and K series
  • Strengthening photonic business in North America

MEDICAL AT A GLANCE

We participate in the ongoing technical progress in medicine

  • Next generation H series
  • Increasing production capacities
  • Growth with digital imaging

MOBILITY AT A GLANCE

We are a strategic partner for realizing a new idea of transportation

Strategy

  • Volume production with new camera family
  • Sensor fusion with Embedded ECU & software competencies
  • Growth with commercial & special vehicles

FINANCIAL FIGURES AT A GLANCE

We improved sales revenues, profitability and financial strength

OUR STRATEGY FOR PROFITABLE GROWTH

OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions

OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions

DIMENSION 1: CLEAR FOCUS ON THREE TARGET MARKETS The industrial market is marked by smart processes

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.

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.

OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions

DIMENSION 2: CLEAR FOCUS ON KEY CUSTOMERS & PRODUCTS Why is this efficient?

Our growth becomes more scalable and our profitability increases.

OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions

DIMENSION 3: CLEAR FOCUS ON FORWARD INTEGRATION We base our forward integration initiatives on clear product roadmaps

www.first-sensor.com | 24

OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions

www.first-sensor.com | 27

www.first-sensor.com | 28

OUR STRATEGY FOR PROFITABLE GROWTH We generate and utilize economies of scale in four dimensions

We have started six core initiatives to improve our operative excellence THE FUNDAMENT: FOCUS ON 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

Portfolio Optimization
Continued
project
execution

Portfolio Consolidation
Review of
further
product
families

THE FUNDAMENT: FOCUS ON OPERATIVE EXCELLENCE Portfolio consolidation: Casestudy for one selected product family

PRODUCTS
A products B products C products
RS
E
M
O
T
S
U
C
ers
m
o
11 %
products
8 % 5 %
ust
A c
69 %
customers
6 % > 1 %
ers
m
o
6 % 12 % 17 %
ust
B c
12 % 9 % 1 %
ers
m
o
> 1 % 3 % 38 %
ust
C c
> 1 % > 1 % 2 %
Top Measures
Threshold order quantities for new products
Minimum order
quantities
for
existing
products
Bundling of demand
Recommendation
of
product
alternatives
Last call
options
if
necessary

We concentrate on three growth drivers

We concentrate on three growth drivers

Main reasons for accidents are preventable human mistakes

Therefore cars become more and more autonomous

Autonomous
Levels
Level 1 Level 2 Level 3 Level 4 Level 5
Assisted
Driving
Partly
Automated
Highly
Automated
Fully
Automated
Driverless
Functionality Active Cruise Control
(ACC)
Lane departure
warning system
(LDWS)
Lane
Keep Assist (LKA)
Park Assist (PA)
Automatic Emergency
Brake
(AEB)
Driver Monitoring
(DM)
Traffic Jam Assist (TJA)
Autopilot on Highway
(AP)
Autopilot everywhere
Sensors +
Ultrasonic
Radar
(long range)
Front Camera
+
Surround Camera
+
+
Radar
(short range)
Driver Camera
LIDAR
SENSOR Fusion SENSOR Fusion

Sensors in vehicles assist the driver and provide more road safety

LiDAR is an important technology for many of these safety applications

Reason: LiDAR provides the highest resolution even for large distances

Radar Cameras
Criteria LiDAR
(pulsed ToF)
Short
distance
Long
distance
Ultra-sonic Mono Stereo PMD
Max range (m) 150
-250
55 -
100
150 -
200
2 -
4
40 -
60
(120
coarse)
60 7 -
10
Min range (m) 1 0,25 -
1
1 0.25 0.3 0.3 0.3

0.8
Precision (m) 0.1 (newer:
0.04)
0.25 –
0.75
0.3 –
3.75
Very good 3 0.2 –
0.3
good
Velocity measurement Indirectly via
distance
t1-t0
directly via Doppler effect hardly hardly Indirect via
dist.
Indirect via
dist.
Horizontal
field of view
30°
-
180°
55°
Scan: 120°
16°,
Scan: 60°
60° 45°
-
190°
45° 40
-
69°
Horizontal resolution 0.01°
-
10.5° 3.5° bad <
0.1°
-
0.3°
<
0.1°
0.2°
Vertical
field of view

-
16°

-
13°

-
13°
30° 45° 45° 40 -
56°
Vertical
resolution
0.8°
-
4.5° 4.5° bad < 0.1° <
0.1°
0.2°

First Sensor is an important supplier for detectors in LiDAR systems

In our LiDAR business we stand out through eight key respects

1 2 3 4
20+ years experience
in APDs
Customizing capability
for die, package and
modules in-house
ISO TS 16949 certified
production and testing
Chip & packaging
company
5 6 7 8
Lowest noise Highest sensitivity
for 905nm
AEC-Q 101 qualified
APD arrays
Innovative roadmap

With our APD we have captured a leading share for more than 10 years

GROWTH DRIVER LIDAR Therefore we will participate in the growth of the driver assist market

We concentrate on three growth drivers

Besides LiDAR, cameras are irreplaceable for a safe surround view

On Board Sensor Capability LIDAR
(Detection
&
ranging)
Camera
(Monitoring
&
classification)
RADAR
(Detection
&
ranging)
V2X &
Cellular*
(Information)
Map &
Location
(Information)
Detection Traffic
objects
Car/Trucks
Performance Motorcycle
Bicycle
Pedestrian
Animal
Debris
Infrastructure Road marking
traffic constraints Traffic signs
Traffic lights
Path/Road Curve
structure Guard rails
Wall/Obstacle Dynamic Static
360°
View
Robustness Rain/Snow
Fog
Night

* Depends on coverage

They support and complement LiDAR functionalities

In our camera business we stand out through eight key respects

1 2 3 4
Long-standing camera
experience
Automotive network
in new markets
Specialist for harsh
environment and low
light applications
Tailor maid solutions
also possible in small
scale production
5 6 7 8

We have many years of experience in the development of cameras

With our expertise we participate in the growing camera market

Our focus is on target customers & leads with significant annual sales

Segments
Customers
LIDAR Cameras Camera
Systems
ADAS
Systems
Multiple Sensors
Sensor Fusion
Car OEM &
Tier 1
Components Customized
cameras
Commercial & Special vehicles
OEM & Tier 1
Components,
Subsystems and
Manufacturing
services
Standard cameras,
tailor
made
solutions
Surround view,
Mirror
replacement,
Blind spot
detection
Turn assist,
Break assist,
Platooning,
Pedestrian
recognition,
Autonomous
driving

We concentrate on three growth drivers

GROWTH DRIVER PRESSURE

We offer a broad range from ultra-low to high pressure sensors

GROWTH DRIVER PRESSURE

We cover the value chain from chip to sensors and sensor systems

GROWTH DRIVER PRESSURE

Our pressure sensors business is driven by megatrends, too

FINANCIAL KEY FIGURES 9M INTERIM REPORT

FINANCIAL KEY FIGURES We reported sales up 6.4% on the previous year's figure

Total sales in € million

FINANCIAL KEY FIGURES Demand in Industrial, Medical & Mobility markets increases constantly

FINANCIAL KEY FIGURES We are moving forward with our internationalization

Sales by region in %

FINANCIAL KEY FIGURES Our strategy for profitable growth shows first results in the EBIT line

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

FINANCIAL KEY FIGURES Our working capital is up due to higher stocks securing further growth

FINANCIAL KEY FIGURES Therefore our operating cash flow is further reduced

FINANCIAL KEY FIGURES At the same time we improved our free cash flow slightly

FINANCIAL KEY FIGURES In total we have continously improved our financial strength

FINANCIAL KEY FIGURES This is also reflected by a reduced net debt

THE SHARE

FIRST SENSOR SHARE

Despite turbulences at stock exchanges our share is back on track

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
Market Capitalization:
60
Index Ranking Turnover: 48
* November 15, 2018

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
14.05.2019 Interim Report Q1 2019
14./15.05.2019 German Spring Conference 2019, Frankfurt
14.08.2019 6M Financial Report 2019
14.11.2019 Interim Report Q3 2019

*As we can not rule out the possibilities of delays, we recommend that you consult the latest set of dates at www.first-sensor.com.

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-oriented information in this presentation was produced on the basis of probability-based planning and represents statements regarding the future which cannot be guaranteed. Rounding differences may occur.

First Sensor AG, Investor Relations T +49 30 63 99 23 760 E [email protected]

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