AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

First Sensor AG

Quarterly Report Nov 27, 2014

159_10-q_2014-11-27_27ace7df-7807-40c3-beea-f681c550f510.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

CONSOLIDATED INTERIM FINANCIAL REPORT AS AT SEPTEMBER 30, 2014

At a glance in figures 4
At a glance in words 5
Foreword by the management board 6
Group management interim report (IFRS) 8
First Sensor share 13
Consolidated balance sheet (IFRS) 15
Consolidated statement of comprehensive income (IFRS) 17
Consolidated statement of changes in equity (IFRS) 18
Consolidated statement of cash flow (IFRS) 19
Notes to the consolidated interim financial statements (IFRS) 20
Assurance of the legal representatives 21
Legal notice, financial calendar, contact 22

AT A GLANCE IN FIGURES

in € thousand, unless otherwise indicated 9M 2014 9M 2013 Δ in % Q3 2014 Q3 2013 Δ in %
Sales revenues 92,214 82,059 10,155 12.4 32,912 28,656 4,256 14.9
Gross profit 47,856 44,209 3,647 8.2 16,668 15,705 963 6.1
Gross margin (%) 50.9 53.4 -2.5 50.2 51.7 -1.5
EBITDA 11,086 10,086 1,000 9.9 4,321 3,925 396 10.1
EBITDA margin (%) 11.8 12.2 -0.4 13.0 12.9 0.1
EBIT* 6,618 5,524 1,094 19.8 2,824 2,398 426 17.8
EBIT margin (%)* 7.0 6.7 0.3 8.5 7.9 0.6
Net profit for the period* 4,483 3,341 1,142 34.2 2,136 1,467 669 45.6
Cash flow from operating activities 7,945 10,391 -2,446 -23.5 4,346 3,388 958 28.3
Cash flow from investment activities -3,215 -6,368 3,153 49.5 -812 -1,070 258 24.1
Free Cash flow 4,730 4,023 707 17.6 1,011 537 474 88.3
Number of shares in thousand 10,107 9,940 167 1.7 10,107 9,940 167 1.7
Earnings per share (€)* 0.44 0.34 0.10 29.4 0.21 0.15 0.06 40.0
Incoming orders 109,576 97,627 11,949 12.2 30,758 31,279 -521 -1.7
Book-to-bill-ratio 1.19 1.19 0 0.93 1.09 -0.16

* For purposes of better comparability adusted by PPA-amortization in the respective financial period.

in € thousand, unless otherwise indicated Sep. 30, 2014 Dec. 31, 2013 Δ in %
Orders on hand 90,511 73,672 16,839 22.9
Shareholders' equity 73,870 70,006 3,864 5.5
Balance sheet total 150,679 146,735 3,944 2.7
Equity ratio (%) 49.0 47.7 1.3
Net debt -31,165 -35,787 4,622 12.9
Number of employees 796 757 39 5.2

AT A GLANCE IN WORDS

  • Year-on-year sales growth of 12.4% to €92.2 million.
  • Operating result (EBITDA) improves by 9.9% to €11.1 million.
  • EBIT before write-downs on purchase price allocations up 19.8% to €6.6 million.
  • Incoming orders for the first three quarters increase by €11.9 million to €109.6 million.
  • Net debt improves by €4.6 million to €-31.2 million.
  • Equity ratio up 1.3 percentage points to 49.0%.
  • Forecast for 2014 confirmed: sales slightly above the spread of €114 million and €119 million, EBITDA between €13 million and €15 million.

FOREWORD BY THE MANAGEMENT BOARD

Dear shareholders and business partners, Dear employees,

Our company enjoyed successful development in the first nine months of financial year 2014.

We recorded year-on-year sales growth of 12.4% to around €92.2 million and improved our operating result (EBITDA) by around 9.9% to almost €11.1 million. EBIT adjusted for write-downs on purchase price allocations also increased significantly as against the previous year, rising by 19.8% to €6.6 million. As a result, the net profit for the period increased year-on-year to around €4.5 million. This corresponds to adjusted earnings per share of €0.44 (previous year: €0.34), and hence an improvement of almost 30% on the previous year.

Based on our order development, we are extremely confident for the coming months. Incoming orders in the first nine months increased by 12.2% year-on-year to around €109.6 million, while orders on hand improved by 22.9% to total €90.5 million.

We would like to thank all of our employees for their performance and commitment, which made a major contribution to the First Sensor Group's results for the first three quarters of 2014.

MARKET LEADERS

Profitable growth in core business areas

The positive business development in the first nine months of 2014 is also the result of the strategic and operational realignment that we initiated at the end of financial year 2013. This involved structuring the company in line with our focus on the rapidly growing medical, industrial and mobility sectors, for which we created dedicated business units within the company at the start of April 2014. Within the dynamically growing future market for sensors and sensor solutions, our aim is to be one of the market leaders in each of these business areas within the next five years.

To this end, we initiated a comprehensive strategic program starting from mid-2014. In addition to a systematic market and customer focus and the establishment and expansion of sales activities in the high-growth regions of Europe and North America, this program involves in particular the structural and organizational adjustments to the company that are necessary for us to achieve our goals. Initial sales successes have already been recorded.

Another aim is to further increase First Sensor's earnings strength. To achieve this, various efficiency improvement measures were continued, initiated and realized in the period under review.

This included the lean production project, which seeks to increase the efficiency of our production activities and reduce the corresponding costs. We are also working to leverage additional synergies within the First Sensor Group in all of our staff departments and business units. In the area of procurement, for example, further savings will be generated through the targeted bundling of orders on a Group-wide basis.

Our aim is for our continued growth over the coming years to be primarily financed internally. We will achieve this by working efficiently and in a cost-effective manner in all areas of the company. Today, First Sensor is one of the world's technical leaders in the area of sensor technology, fulfilling the highest quality standards. In order to maintain this position in future and gain additional market share, we require ongoing investment in our development, our production and testing facilities, and our employees' expertise. Accordingly, profitable growth in all of our core business areas is the basic condition for achieving our strategic and operational targets.

TAKEOVER BID BY FS TECHNOLOGY HOLDING S.À.R.L.

Joint statement in accordance with section 27 (1) WpÜG

On June 24, 2014, FS Technology Holding S.à.r.l. announced its decision to submit an offer to the shareholders of First Sensor AG for the acquisition of all of the shares in First Sensor AG in the form of a voluntary public takeover bid. The corresponding documentation was published by FS Technology Holding S.à.r.l. on July 28, 2014. According to the documentation, FS Technology Holding S.à.r.l. made a purchase offer of €10.33 per share to the shareholders of First Sensor AG. The acceptance period ended at midnight (CET) on August 26, 2014.

The Supervisory Board and Management Board of First Sensor AG carefully examined and discussed the voluntary takeover bid at a joint meeting.

FINANCIAL YEAR 2014

Positive forecast for the year confirmed

We have made good progress and achieved key milestones in the strategic and organizational realignment of First Sensor over recent months, and we will continue to systematically press ahead on our clear and profitable growth path in the months to come.

Following this meeting, the Supervisory Board and we, the Management Board of First Sensor AG, issued a joint statement in accordance with section 27 (1) of the German Securities Acquisition and Takeover Act (WpÜG). In this statement, we started by welcoming the intention of FS Technology Holding S.à.r.l. to allow First Sensor to continue as an independent company and to support the Management Board in its current strategy. Even after obtaining extensive financial analyses from equinet Bank AG, however, we were unable to recommend that our shareholders accept the takeover bid at an offering price of €10.33 per share. Please refer to the published version of the joint statement, which can be found in the Investor Relations section of our website.

In light of the positive growth prospects in our core business areas and our strong order performance, we are confirming the forecasts for 2014 as a whole that we issued on March 18, 2014, with total sales slightly above the spread of €114 million and €119 million and an expected operating result (EBITDA) of between €13 million and €15 million.

The Management Board

Dr. Martin U. Schefter Joachim Wimmers CEO CFO

GROUP MANAGEMENT INTERIM REPORT (IFRS)

BUSINESS MODEL

First Sensor is a developer and manufacturer of customer-specific high-end sensor solutions. These innovative specialized sensor solutions are used for the high-quality conversion of non-electric variables (radiation, light, pressure, flow rate, position, speed, fill level, etc.) into electric variables that are then used in our customers' electronic systems.

First Sensor's sensor solutions are mostly used as key components in a wide range of applications in several different industries.

Our core competencies include solutions in the area of optoelectronics, industrial cameras and MEMS sensor technology.

First Sensor's future strategy for its sensor products will focus on three growing branches of business: technical applications in the fields of medicine, industry and mobility supported by engineering and production services. The business units has been created as part of this plan, which will ensure a consistent focus on markets and customers. The company will also systematically expand its international sales in Europe, Asia and North America. We have identified the changes that we needed to make to our organizational structure and have been implemented these. First Sensor is aiming to become one of the market leaders in all areas of business within the next five years.

Medical

  • Ventilators and anesthesia equipment
  • Blood glucose monitors
  • Cancer diagnosis
  • Measurement systems for the pharmaceutical and environmental technology industries

Mobility

  • LIDAR (optical distance and speed measurement)
  • Tank pressure and sun angle sensors for motor vehicles
  • Air conditioning systems

Industrial

  • Fill level measurements in industry
  • X-ray machines for baggage screening
  • Machine controls
  • Aerospace technology
  • Truck toll monitoring

First Sensor is one of the world's technology leaders, developing and producing optoelectronic and MEMSbased high-end sensor solutions for the most stringent specifications.

First Sensor is active in a future market, and the broad mix of sectors means that the company is generally independent of cyclical developments in the individual sectors.

The market for high-end sensor solutions that First Sensor addresses is generally regarded as a strong global growth market, not least because the number of measurements required in each area of application is also increasing ever further. This means it is important to fit more and more sensors into the smallest possible space. To achieve this, the sensors must become smaller. The market is also demanding robust solutions that are as affordable as possible. First Sensor's broad technological expertise and experience allows it to develop solutions on the basis of technologies other than those that were previously standard. With the new LDE pressure sensor and the new T-bridge, for example, two innovative products that address precisely this demand have just reached market maturity.

ECONOMIC REPORT

Changes in the basis of consolidation

There were no changes in the basis of consolidation in the year under review.

Earnings situation

In the period under review, First Sensor's total sales increased by 12.4% year-on-year to €92.2 million. This is primarily due to the higher level of sales in the Mobility segment and increased sales from production services. The strengthening of the US sales organization is also being reflected in initial sales success. This more than offset the deferred sales from the substitution of trading business.

The total performance of €94.0 million (previous year: €82.8 million) includes capitalized own work and changes in inventories of finished goods and work in progress in addition to sales. The increase is due primarily to increased sales and positive changes in inventories.

The €0.4 million increase in other operating income to €2.8 million (previous year: €2.4 million) is mainly due to remeasurement gains on the shares granted under the share matching scheme for members of the Management Board as an adjustment to personnel expenses taken directly to equity in the amount of €0.5 million.

The gross margin amounted to 50.9%, 2.5 percentage points lower than in the previous year. This was primarily due to the change in the product mix in the first nine months of the financial year due to expansion in the Mobility segment, which tends to have lower margins. The conclusion of new business is continuing to lead to lower earnings contributions across the various sectors. The downturn in the gross margin is offset by the substitution of lower-value trading business with more profitable in-house manufacturing.

Personnel expenses increased by €2.6 million year-onyear to €-29.4 million due to various effects such as the appointment of new production staff, the realignment in connection with the business unit organization and individual personnel measures, as well as the non-cash personnel expenses resulting from the share matching scheme exercised by the Management Board.

Despite this, the personnel expenses ratio improved by one percentage point to 31.2% due to the rise in total performance.

Other operating expenses increased by €0.4 million to €-10.2 million. This was primarily due to increased consultation services in connection with the business unit realignment, the higher level of warranty expenses on the back of the increased sales volume, and greater expenditure on the recruitment of qualified staff.

This resulted in a year-on-year improvement in earnings before interest, taxes, depreciation and amortization (EBITDA) to €11.1 million (previous year: €10.1 million), which corresponds to an EBITDA margin in relation to total performance of 11.8% (previous year: 12.2%).

Depreciation of property, plant and equipment and amortization of intangible assets amounted to €-6.4 million (previous year: €-6.5 million). The reduction is due to write-downs on purchase price allocations and the lower level of investment activity.

The financial result improved by €-0.5 million in the period under review due to the more favorable interest rate of the promissory note loan compared with the previous syndicated loan agreement and lower currency losses in connection with forward foreign exchange contract hedging.

This resulted in a significantly improved consolidated profit after tax of €2.6 million for the first three quarters of financial year 2014 (previous year: €1.4 million).

Order situation

Orders on hand in the Group amounted to €90.5 million as at September 30, 2014, an increase of €16.8 million compared with December 31, 2013 (€73.7 million). Incoming orders also recorded encouraging growth of €12.0 million (12.2%) to €109.6 million compared with €97.6 million in the same period of the previous year. The ratio of incoming orders to sales (book-to-bill) as a leading indicator remained constant at 1.19 (previous year: 1.19).

This provides a solid basis for the achievement of our growth targets for 2014.

in € thousand 9M 2014 9M 2013
Sales 92,214 82,059
Incoming orders 109,576 97,627
Orders on hand (previous year: Dec. 31) 90,511 73,672
Book-to-bill ratio 1.19 1.19

Financial analysis

The aim of First Sensor's financial management is to ensure adequate liquidity at all times for the production processes, growth and investments.

Promissory note loans totaling €31.0 million issued at the end of the 2013 financial year matured, meaning that only loan repayments and interest payments for current loans were recorded in the first three quarters of 2014.

Net debt is shown in the following table:

in € thousand Q3 2014 2013
Non-current financial liabilities -41,230 -42,927
Current financial liabilities -4,059 -4,217
Cash and cash equivalents 14,124 11,357
Net debt -31,165 -35,787

Financial liabilities fell by €3.1 million in the first nine months of the financial year on account of loan repayments. This was offset by new investment loans totaling €1.2 million. Operating performance meant that cash and cash equivalents improved by €2.8 million as of September 30, 2014. This resulted in a further improvement in net debt of €4.6 million.

Investment analysis

Cash flow from investment activities of €-3.2 million (previous year: €-6.4 million) mainly relates to investments in machinery and equipment for the capacity expansion of production facilities. The comparatively high prior-year figure is due to the scheduled borrowing for the payment of the subsequent purchase price installment of €4.8 million in connection with the acquisition of the Sensortechnics Group.

The sale of the equity interest in Vereta GmbH also impacted the prior-year cash flow from investment activities in the amount of €0.6 million.

Depreciation and amortization was largely unchanged as against the previous year. There was a slight reduction due to the depreciation and amortization of assets as a result of purchase price allocation for the Sensortechnics Group and write-downs on property, plant and equipment.

in € thousand 9M 2014 9M 2013
Intangible assets -656 -465
Property, plant and equipment -2,928 -1,927
Investments -3,584 -2,392
Disinvestment of Vereta GmbH 0 550
Acquisition of subsidiaries 0 -4,750
Investment grants 346 185
Other effects 23 39
Cash flow from investment activities -3,215 -6,368
Intangible assets -2,403 -2,469
Property, plant and equipment -3,976 -4,084
Depreciation and amortization -6,379 -6,553

Liquidity analysis

In order to be able to assess First Sensor's solvency, the following table shows the company's liquidity in the form of liquidity ratios. To calculate the cash ratio, cash and cash equivalents are shown in relation to current liabilities. The quick ratio includes current receivables, while the current ratio takes into account inventories as well. This results in a sufficient liquidity status to fulfill the outstanding liabilities.

in % Q3 2014 2013
Cash ratio 68.4 60.8
Quick ratio 137.9 117.9
Current ratio 283.4 277.3

The following table shows the condensed consolidated statement of cash flows:

in € thousand 9M 2014 9M 2013
Cash flow from operating activities 7,945 10,391
Cash flow from investment activities -3,215 -6,368
Cash flow from financing activities -2,016 -5,453
Exchange differences 53 -446
Change in cash and cash equivalents 2,714 -1,430
Cash and cash equivalents
at the start of the financial year
11,357 12,201
Cash and cash equivalents
at the end of the financial year
14,124 10,325
Free cash flow 4,730 4,023

Cash flow from operating activities was down year-onyear at €7.9 million. This was primarily attributable to the factoring that was introduced in June 2013, which led to a significant reduction in working capital due to the first-time sale of receivables and hence a high cash flow from operating activities at the reporting date.

Cash flow from operating activities as of September 30, 2014 was impacted by the €3.3 million increase in accounts receivable to €9.9 million at the reporting date and the higher level of working capital as a result.

Free cash flow, which consists of the total of cash flow from operating activities and cash flow from investment activities, amounted to €4.7 million in the period under review (previous year: €4.0 million). The improvement in free cash flow was primarily due to the higher operating result in the first three quarters compared with the previous year.

Analysis of asset structure

Total assets increased from €146.7 million in the consolidated financial statements for 2013 to €150.7 million at the reporting date. The main changes were due to the following factors:

The carrying amount of intangible assets fell from €22.9 million to €21.1 million. This was due to amortization of €2.4 million, which was offset by investments in the amount of €0.6 million.

Internally generated intangible assets are reported separately for greater clarity. At the reporting date, this item was unchanged at €2.9 million (previous year: €2.9 million).

Goodwill remained unchanged year-on-year at €29.8 million. The carrying amounts were subjected to impairment testing in the 2013 annual financial statements and no valuation allowances were found to be necessary; this was confirmed at the reporting date.

The carrying amount of property, plant and equipment declined by €1.0 million to €36.5 million as of September 30, 2014, due to depreciation effects. Investments of €2.9 million were offset by depreciation in the amount of €3.9 million.

Inventories increased by €0.3 million to €30.0 million on the back of the improved order situation and the higher sales generated as a result. This development was offset by the improvements in working capital in the 2014 financial year as a result of the completed purchasing project.

The significant increase in accounts receivable of €3.3 million to €9.9 million compared with December 31, 2013 is largely due to the higher level of sales in the Mobility segment and the service production area.

Cash and cash equivalents improved by €2.8 million to €14.1 million at the reporting date, with increased purchases of materials to serve the higher sales volume and the rise in personnel expenses and other operating expenses being offset by reduced repayments of principal and the utilization of supplier credit. First Sensor also generated a cash inflow of €0.7 million from capitalization measures (see equity, statement of changes in equity).

Accounts payable increased by €0.7 million to €8.4 million compared with the consolidated financial statements for 2013. This was due in particular to the utilization of supplier credit and increased purchases of materials to serve the higher production volume.

Other current liabilities totaled €7.4 million at the reporting date. The €1.5 million increase compared with the end of 2013 is due to the higher level of valueadded tax liabilities and other provisions.

Due to the proportional increase in net profit, this improved the equity ratio by 1.3 percentage points to 49.0% (previous year: 47.7%).

Group equity increased by €3.9 million as against December 31, 2013 to €73.9 million at the reporting date. Please refer to the statement of changes in equity for further information.

The exercise of the share matching scheme by the members of the Management Board from Authorized Capital 2013/I and the exercise of share options under the share option program from Contingent Capital 2009/II also led to an increase in cash and cash equivalents totaling €0.7 million.

SUPPLEMENTARY REPORT

There were no material events after the end of the reporting period. In August 2014, Elbau Singapore Pte. Ltd. was renamed First Sensor Singapore (FSG) Pte. Ltd. in the interests of uniform naming within the Group.

On October 13, 2014, ING Groep N.V., Amsterdam, Netherlands, informed us in accordance with section 21 (1) of the German Securities Trading Act (WpHG) that its interest in the voting rights of First Sensor AG, Berlin, Germany, exceeded the threshold of 30% on October 9, 2014 and amounted to 30.62% (3,095,189 voting rights) on this date.

All of the voting rights are attributable to ING Groep N.V. in accordance with section 22 (1) sentence 1 no. 1 WpHG.

The attributable voting rights are held via the following companies controlled by ING Groep N.V., each of which has an interest in the voting rights of First Sensor AG, Berlin, Germany, of 3% or more:

FS Technology Holding S.à.r.l. Parcom Deutschland I GmbH & Co. KG Parcom Capital B.V. Nationale Nederlanden Levensverzekering Maatschappij N.V. Nationale Nederlanden Nederland B.V.

ING Insurance Eurasia N.V.NN Group N.V.

OUTLOOK, OPPORTUNITY AND RISK REPORT

For reporting on the outlook, opportunity and risk report, please refer to the information contained in the business report for the 2013 financial year, which was published at the end of March 2014.

No material changes to the situations described therein have occurred during the first nine months of financial year 2014.

FIRST SENSOR SHARE

Moderate performance at a high level continues in the third quarter / Share price up 31.66% since start of year

Market and index comparison of the performance of the First Sensor share in Q3 2014

At the start of the third quarter, the share price continued on the previous sideways trend, moving within a narrow range of between €10.80 and €11.08. On July 24, above-average demand led to a sharp increase to €11.24. In the subsequent days, the shares reached their high for the financial year to date of €11.32. Following limited profit-taking, the share price ended the month at €10.95 (Xetra closing price).

The start of August saw a recovery, with the share price approaching its previous high at €11.20. Positive sentiment was driven by the announcement of the preliminary results for the first half of 2014 on August 6. The share price stabilized at €11.00 throughout the rest of the month with the exception of August 25, during which it fell to a low for the month of €10.75. An upturn in the subsequent trading days led to a closing price of €11.12 on August 29.

September saw largely varied development in First Sensor AG's share price, although €10.80 provided valid support for the most part. The share price moved within a range of between €10.80 and €11.20. With turnover generally low on the whole, September 15 was notable as a total of 61,803 shares were traded on Xetra and the share price climbed to €11.17. This also represented the highest daily turnover in the reporting period.

However, the situation deteriorated again towards the end of the quarter, with the share price declining as a result. The shares reached a low for September – and the reporting period as a whole – of €10.23 on September 26. Despite a substantial recovery in the final trading days, the share price failed to return to the level recorded in mid-September, closing the third quarter at €10.90 (Xetra closing price).

Performance in the period under review was rather sobering, with the share price declining slightly by 0.68%. However, First Sensor AG's shares enjoyed significant growth over the first nine months of the financial year as a whole, with their price rising by 31.66% since the start of the year. The total number of First Sensor shares traded each day averaged around 10,600 in the third quarter and around 10,000 in the first nine months (both XETRA + Frankfurt).

All in all, First Sensor AG's shares slightly outperformed the TecDAX and Prime All Share indices. Although the share price declined slightly by 0.68% in the third quarter, the Prime All Share Index lost 3.84% of its value in the same period, while the TecDAX fell by as much as 4.56%.

On July 28, FS Technology Holding S.à.r.l. published its takeover bid as previously announced. The joint statement by the Management Board and the Supervisory Board followed on July 31. Following careful examination and discussion, the Management Board and Supervisory Board were unable to recommend that shareholders accept the takeover bid at the offering price. By the end of the acceptance period on August 26, the takeover bid had been accepted for around 1.42% of First Sensor AG's issued capital at the reporting date. By the end of the additional acceptance period at midnight on September 12, the takeover bid had been accepted for a total of 1.54% of the company's shares. On October 9, the takeover bid was settled and the consideration was paid to those shareholders who had accepted the bid. FS Technology Holding S.à.r.l. submitted a voting right notification stating that its interest in the voting rights of First Sensor AG exceeded the threshold of 30% on October 9 and amounted to 30.62% on this date.

First Sensor AG's share capital amounted to €50,536,415.00 as at the balance sheet date, divided into 10,107,283 no-par value bearer shares each with a notional interest in the share capital of €5.00. This results in market capitalization of around €110.17 million based on a closing price of €10.90 per share as at September 30.

Performance of the First Sensor share from January 1 to October 31, 2014

First Sensor share key figures

14

in € thousand, unless otherwise specified Sep. 30, 2014 Sep. 30, 2013 Δ Δ %
Share capital (€) 50,536,415 49,701,365 835,050 1.7
Market capitalization 110,169 77,037 33,132 43.0
Share price (€), XETRA closing price 10.90 7.75 3.15 40.6
Net profit attributable to shareholders* 4,266 3,221 1,045 32.4
Number of shares, weighted 10,013,562 9,940,273 73,289 0.7
Earnings per share (€)* 0.43 0.32 0.11 34.4

* For purposes of better comparability adjusted by PPA-amortization in the respective financial period.

Shareholder structure as at Sep. 30, 2014

(according to available voting rights notifications)

First Sensor AG TecDax (Course index) Prime All Share (Course index)

First Sensor Share key data

ISIN DE0007201907
Abbreviation SIS
Class of security No-par value ordinary bearer share
Market segment Regulated market
Transparency level Prime Standard
Trading centers XETRA, all German stock exchanges
Industry Technology
IPO 1999
Designated sponsor equinet Bank AG
Warburg Research, Hauck & Aufhäuser
Analysts Institutional Research

CONSOLIDATED BALANCE SHEET (IFRS)

ASSETS

ASSETS in € thousand Sep. 30, 2014 Dec. 31,2013 Δ
Intangible assets 21,144 22,931 -1,787
Internally-generated intangible assets 2,875 2,875 0
Goodwill 29,816 29,816 0
Property, plant and equipment 36,520 37,528 -1,008
Other non-current assets 23 21 2
Deferred taxes assets 1,775 1,791 -16
Total non-current assets 92,153 94,962 -2,809
Inventories 30,049 29,765 284
Trade accounts receivables 9,868 6,577 3,291
Tax refund claims 664 717 -53
Other current assets 3,821 3,357 464
Cash and cash equivalents 14,124 11,357 2,767
Total current assets 58,526 51,773 6,753
TOTAL ASSETS 150,679 146,735 3,944

EQUITY AND LIABILITIES

EQUITY AND LIABILITIES in € thousand Sep. 30, 2014 Dec. 31, 2013 Δ
Share capital 50,536 49,907 629
Capital reserves 16,260 15,960 300
Earning reserves 1,004 1,004 0
Currency translation -248 -570 322
Revaluation reserves -454 -495 41
Retained earnings 6,373 4,018 2,355
Minority interest 399 182 217
Total shareholders' equity 73,870 70,006 3,864
Non-current post-employment benefit obligation 303 310 -7
Other non-current provisions 167 195 -28
Long-term loans, excluding current portion 41,230 42,927 -1,697
Other non-current liabilities 5,690 5,944 -254
Deferred tax liabilities 6,260 6,835 -575
Total non-current liabilities 53,650 56,211 -2,561
Income tax provisions and liabilities 1,786 1,299 487
Other current provisions 725 550 175
Short-term loans and current portion of long-term loans 4,059 4,217 -158
Payments received on account of orders 770 865 -95
Trade accounts payables 8,400 7,706 694
Other current liabilities 7,419 5,881 1,538
Total current liabilities 23,159 20,518 2,641
TOTAL EQUITY AND LIABILITIES 150,467 146,735 3,944

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS)

CONSOLIDATED INCOME STATEMENT

9M 2014 9M 2013 Δ Q3 2014 Q3 2013 Δ
92,214 82,059 10,155 32,912 28,656 4,256
2,759 2,393 366 984 834 150
1,395 -73 1,468 169 1,320 -1,151
405 774 -369 138 406 -268
-46,158 -38,551 -7,607 -16,551 -14,677 -1,874
-29,366 -26,740 -2,626 -9,949 -9,221 -728
-10,163 -9,776 -387 -3,382 -3,393 11
11,086 10,086 1,000 4,321 3,925 396
-6,379 -6,553 174 -2,134 -2,164 30
4,707 3,533 1,174 2,187 1,761 426
10 24 -14 3 7 -4
-1,693 -1,987 294 -546 -659 113
83 150 -67 2 34 -32
-129 -429 300 0 -219 219
2,978 1,291 1,687 1,646 924 722
-406 59 -465 -147 -94 -53
2,572 1,350 1,222 1,499 830 669
2,355 1,230 1,125 1,410 779 631
217 120 97 89 51 38
0.24 0.12 0.12 0.14 0.08 0.06
0.23 0.12 0.11 0.14 0.08 0.06

OTHER COMPREHENSIVE INCOME

2,572 1,350 1,222 1,499 830 669
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
332 -213 545 280 -168 448
41 302 -261 24 40 -16
0 -64 64 0 -12 12
373 25 348 304 -140 444
2,945 1,375 1,570 1,803 690 1,113
2,728 1,255 1,473 1,714 639 1,075
217 120 97 89 51 38

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS)

SEPTEMBER 30, 2013

in € thousand Number of
shares
in thou.
Capital stock Capital
reserves
Earning
reserves
Currency
translation
Revaluation
reserves
Retained
earnings
Minority
interest
Total
shareholders'
equity
As at January 1, 2013 9,940 49,701 15,699 1,004 -329 -821 4,537 125 69,916
Net profit for the period 1,230 120 1,350
Other comprehensive income -226 265 39
Total comprehensive income -226 265 1,230 120 1,389
Share-based remuneration 137 137
Capital increase 0
Appropriation of earnings 0
As at Sep. 30, 2013 9,940 49,701 15,836 1,004 -555 -556 5,767 245 71,442

SEPTEMBER 30, 2014

in € thousand Number of
shares
in thou.
Capital stock Capital
reserves
Earning
reserves
Currency
translation
Revaluation
reserves
Retained
earnings
Minority
interest
Total
shareholders'
equity
As at January 1, 2014 9,981 49,907 15,960 1,004 -570 -495 4,018 182 70,006
Net profit for the period 2,355 217 2,572
Other comprehensive income 322 41 363
Total comprehensive income 322 41 2,355 217 2,935
Share-based remuneration 207 207
Capital increase 126 629 93 722
Appropriation of earnings 0
As at Sep. 30, 2014 10,107 50,536 16,260 1,004 -248 -454 6,373 399 73,870

CONSOLIDATED STATEMENT OF CASH FLOW (IFRS)

in € thousand 9M 2014 9M 2013 Δ Q3 2014 Q3 2013 Δ
INCOME BEFORE TAX AND MINORITY INTEREST 2,978 1,291 1,687 1,646 924 722
Interest paid 1,683 -24 1,707 543 -6 549
Depreciation of property, plant and equipment and amortization
of intangible assets
6,379 6,553 -174 2,134 2,164 -30
Income from investment grants -346 -435 89 -149 -162 13
Income/ loss from the disposal of fixed assets -13 5 -18 6 -4 10
Other non-cash expenses/ income -775 137 -912 -1,050 111 -1,161
Changes in provisions -670 99 -769 289 40 249
Changes in working capital -2,976 3,527 -6,503 -327 332 -659
Changes in other assets and liabilities 1,198 -708 1,906 1,068 -229 1,297
Income tax paid 487 -54 541 186 218 -32
CASH FLOW FROM OPERATING ACTIVITIES 7,945 10,391 -2,446 4,346 3,388 958
Payments for investments in property, plant and equipment and
intangible assets
-3,584 -2,392 -1,192 -958 -1,077 119
Payments for acquisition of subsidiaries 0 -4,750 4,750 0 0 0
Proceeds from disposal of property, plant and equipment,
intangible assets and investments
13 574 -561 -6 4 -10
Payments for acquisition of other financial assets 0 -9 9 0 -3 3
Proceeds from investment grants 346 185 161 149 0 149
Interest received 10 24 -14 3 6 -3
CASH FLOW FROM INVESTMENT ACTIVITIES -3,215 -6,368 3,153 -812 -1,070 258
Proceeds from shareholders 722 120 602 86 51 35
Repayments of financial liabilities -3,080 -11,335 8,255 -650 -6,790 6,140
Proceeds from loans 1,225 5,762 -4,537 0 195 -195
Interest paid -883 0 -883 -276 0 -276
CASH FLOW FROM FINANCING ACTIVITIES -2,016 -5,453 3,437 -840 -6,544 5,704
NET CHANGE IN CASH AND CASH EQUIVALENTS 2,714 -1,430 4,144 2,694 -4,226 6,920
Currency differences from converting funds 53 -446 499 45 -276 321
CASH FUNDS AT THE BEGINNING OF THE FINANCIAL PERIOD 11,357 12,201 -844 11,385 14,827 -3,442
CASH FUNDS AT THE END OF THE FINANCIAL PERIOD 14,124 10,325 3,799 14,124 10,325 3,799

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS (IFRS)

Presenation of the situation at the group

The parent company is First Sensor AG, domiciled in Berlin, Peter-Behrens-Straße 15, 12459 Berlin, and entered in the commercial register of Berlin in department B under the number HRB 69326. First Sensor AG is listed in the regulated market on the Frankfurt Stock Exchange in the Prime Standard segment under ISIN DE0007201907.

First Sensor AG and its subsidiaries, referred to hereinafter as "First Sensor", operate in the sensor production and microsystems technology industries. The company's business mainly focuses on the development, manufacture and distribution of customer-specific optical and non-optical semiconductor sensors and sensor systems.

First Sensor also develops and manufactures highly reliable customized hybrid circuits and products for microsystem engineering and advanced packaging.

The consolidated financial statements for 2013 were approved by the Supervisory Board on March 25, 2014, and were published on the First Sensor AG website.

Reporting principles

First Sensor's consolidated financial statements for 2013 have been prepared in accordance with the applicable International Financial Reporting Standards (IFRS) as at the balance sheet date and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) that must be applied in the European Union.

In the consolidated interim financial report as at September 30, 2014, which was prepared on the basis of International Accounting Standard (IAS) 34 "Interim Financial Reporting", the same accounting policies were used as in the consolidated interim financial report as at March 31, 2014 and June 30, 2014 and in the consolidated financial statements for financial year 2013.

The interim financial statements were prepared in euro (€). Unless otherwise indicated, all amounts have been stated in thousands of euros (€ thousand). The financial year of First Sensor AG and its consolidated subsidiaries corresponds to the calendar year.

The half-yearly financial report has not been audited or reviewed by the company's auditor.

The statement of comprehensive income has been prepared using the nature of expense method.

The business model is not seasonal in nature, meaning that no cyclical fluctuations are anticipated.

To improve clarity, individual items have been summarized in the balance sheet and the statement of comprehensive income. Rounding differences in the presentation may result in divergence from the exact mathematical values.

Important discretionary decisions and uncertainty of estimates

In preparing the interim financial statements, some assumptions and estimates have been made which affected the amount and the disclosure of reported assets and liabilities, earnings and expenses. In individual cases, the actual values may deviate from these assumptions or estimates at a later stage. Relevant changes will be made once more accurate information is available.

All assumptions and estimates are made to the best of our knowledge and belief in order to provide a true and fair view of the Group's net assets, financial position and results of operations.

Basis of consolidation

There were no changes to the Group's basis of consolidation compared with the consolidated financial statements for 2013.

Discontinued operations

No operations were discontinued in the third quarter of 2014.

Corporate Governance

The company has issued a declaration of compliance pursuant to Article 161 AktG (German Stock Corporation Act) and the declaration of business management pursuant to Article 289a German Commercial Code HGB. These declarations are permanently available on the company's website

www.first-sensor.com/en/investor-relations

ASSURANCE OF THE LEGAL REPRESENTATIVES

according to Articles 264 (2) sentence 3, 289 (1) sentence 5 HGB

To the best of our knowledge, and in accordance with the applicable reporting principles, the financial statements give a true and fair view of the assets, financial position and profit or loss of the group, and the consolidated management report includes a fair review of the

development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group.

Berlin, November 27, 2014

First Sensor AG

Dr. Martin U. Schefter Joachim Wimmers CEO CFO

LEGAL NOTICE, FINANCIAL CALENDAR, CONTACT

Legal disclaimer

This report contains statements of a predictive nature and does not represent any incitement to purchase shares of First Sensor AG, but rather is intended exclusively for information purposes with regard to possible future developments at the company.

All future-oriented specifications in this consolidated financial report were produced on the basis of a probability-based plan and represent statements regarding the future which cannot be guaranteed.

Date Topic Location
March 26, 2015 Publication of consolidated financial report as at
December 31, 2014
May 12, 2015 Publication of consolidated interim financial report as at
March 31, 2015
May 28, 2015 Annual shareholder meeting Penta Hotel Berlin Köpenick,
Grünauer Str. 1, 12557 Berlin
August 13, 2015 Publication of consolidated interim financial report as at
June 30, 2015
November 12, 2015 Publication of consolidated interim financial report as at
September 30, 2015
November/2015 Analysts' conference First Sensor AG/
German Equity Capital Forum 2015
Congress Center at Messe Frankfurt,
Frankfurt am Main

Financial calendar 2015

As we cannot rule out the possibility of delays, we recommend that you consult the latest set of dates at http://www.first-sensor.com/en/investor-relations/events

Internet, information, contact

This consolidated interim financial report as at September 30, 2014 is available in German and English. Both versions are also available for download on the internet at www.first-sensor.com.

Investor Relations T +49 30 639923-760 F +49 30 639923-719 [email protected] www.first-sensor.com/en/investor-relations

FIRST SENSOR AG 23

Consolidated interim financial report as at September 30, 2014

First Sensor AG Peter-Behrens-Str. 15 12459 Berlin

T +49 30 6399 2399 F +49 30 6399 2333 [email protected]

www.first-sensor.com

Talk to a Data Expert

Have a question? We'll get back to you promptly.