AI Terminal
First Sensor AG
Interim / Quarterly Report • May 15, 2024
159_10-q_2024-05-15_f7883399-ee74-4e4f-bbd2-bbfc8c7416cc.pdf
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
Interim Report as of March 31, 2024
FIRST SENSOR AG, BERLIN
ABOUT THIS REPORT
The reporting period is the six months from October 1, 2023 to March 31, 2024. To ensure that this report is as current as possible, it includes all relevant information available up to the responsibility statement dated May 15, 2024.
Information on accounting
The interim consolidated financial statements and the consolidated interim report are prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), and in accordance with additional requirements of the Handelsgesetzbuch (HGB – German Commercial Code).
The internal control system (ICS) provides reasonable assurance regarding the reliability of financial reporting and compliance with applicable laws and regulations. There are regular reviews of the processes relevant to financial reporting to monitor the effectiveness of the ICS.
Information on formal presentation
This year, we are once again publishing our interim report exclusively in digital form. It is available as a full-content PDF in German and English. The German version of the report takes precedence over the English translation in the event of any discrepancies.
For better readability, we refrain from references to rounding differences in this publication and use only the masculine form. It refers to persons of any gender.
Disclaimer
The interim report contains forward-looking statements that are exclusively intended to provide information on future developments at the company. They do not constitute a recommendation to buy, hold or sell First Sensor shares. Forward-looking statements are those that address activities, events or developments that management intends, expects, projects, believes or anticipates will or may occur in the future. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from the results projected. Our results will be subject to many of the same risks that apply to the semiconductor sector or the industries of First Sensor's customers, such as general economic conditions, interest rate fluctuations, consumer spending patterns and technological changes.
All statements concerning the future in this report were produced on the basis of probability-based planning and represent reasonable forward-looking statements regarding the future that cannot be guaranteed. It should be noted that all forward-looking statements only speak as of the date of this report and that First Sensor AG does not assume any obligation, except as required by law, to update any forward-looking statement or to conform any such statement to actual events or development.
| First Sensor AG, Berlin1 | |||
|---|---|---|---|
| 1. | TO OUR SHAREHOLDERS 4 | ||
| 1.1 | Foreword by the Management Board 4 | ||
| 2. | CONSOLIDATED INTERIM REPORT5 | ||
| 2.1 | Economic report 5 | ||
| 2.1.1 | General economic and sector conditions5 | ||
| 2.1.2 | Financial position and financial performance6 | ||
| 2.1.3 | Overall statement11 | ||
| 2.2 | Forecast report and opportunity and risk report11 | ||
| 2.2.1 | Forecast report11 | ||
| 2.2.2 | Report on risks and opportunities12 | ||
| 3. | INTERIM CONSOLIDATED FINANCIAL STATEMENTS 2024 13 | ||
| 3.1 | Consolidated Statement of Financial Position (IFRS)13 | ||
| 3.1.1 | Assets13 | ||
| 3.1.2 | Equity and liabilities13 | ||
| 3.2 | Consolidated Statement of Comprehensive Income (IFRS)14 | ||
| 3.2.1 | Consolidated income statement14 | ||
| 3.2.2 | Other comprehensive income14 | ||
| 3.3 | Consolidated Statement of Changes in Equity (IFRS)15 | ||
| 3.4 | Consolidated Statement of Cash Flows (IFRS) 16 | ||
| 4. | NOTE 17 | ||
| 4.1 | Development of the First Sensor Group 17 | ||
| 4.2 | Intangible assets 17 | ||
| 4.3 | Notes to sales revenue18 | ||
| 4.4 | Notes to the statement of changes in equity 18 | ||
| 4.5 | Notes to the consolidated statement of cash flows18 | ||
| 4.6 | Related party transactions19 | ||
| 4.7 | Supplementary report20 | ||
| 5. | RESPONSIBILITY STATEMENT IN ACCORDANCE WITH SECTION 297(2) SENTENCE 4 AND SECTION 315(1) SENTENCE 5 HGB21 |
1. TO OUR SHAREHOLDERS
1.1 FOREWORD BY THE MANAGEMENT BOARD
Dear Shareholders and Business Partners,
First Sensor's sales amounted to €59.7 million in the first half of the 2024 financial year, around 10% lower than the previous year's level. The downturn in the industrial sector is thus proving more pronounced and tougher than originally expected. We have therefore decided to lower our sales forecast for the financial year and have published new guidance of between €115 million and €125 million.
We are taking advantage of the somewhat calmer order situation to make various optimizations in production. On the one hand, we have an investment budget of between €8 million and €10 million for this financial year. Of this figure, around €5 million relates to three new pieces of machinery which will increase both capacity and automation. In addition, measures are planned to improve employee safety in production even further. We are aiming not just to achieve our goal of "zero accidents in the workplace", but to maintain this level moving ahead as well.
This year's Annual General Meeting was held in person in Berlin on April 24, 2024. The Management Board and the Supervisory Board reported extensively on the 2023 financial year and answered all questions from shareholders in attendance. Resolutions were adopted on all agenda items by a large majority.
Naturally, the integration into the TE Connectivity Group was a key issue once again. It has become clear that First Sensor is TE Connectivity's European center of competence for sensor production. As such, First Sensor benefits not just from considerable capital expenditure, but also from significantly greater market presence. Globally, its integration into TE Connectivity's distribution organization means that customers in around 140 countries can source sensors from First Sensor.
We continue to be delighted by your interest in the development of our company and by your constructive support. As usual, we will keep you informed about the next steps in our journey.
The Management Board
Thibault Kassir Robin Maly Dirk Schäfer
2. CONSOLIDATED INTERIM REPORT
2.1 ECONOMIC REPORT
2.1.1 General economic and sector conditions
Developments in the economy as a whole
The International Monetary Fund (IMF) recently raised its forecast for global growth slightly. At the same time, it emphasizes that a prolonged global downturn could be imminent and that risks to economic development are on the rise. The sobering reality is that global economic activity is weak by historical standards and the growth prospects for the medium term are unsatisfactorily low. The war in Ukraine and the conflict in Gaza are weighing on the global economy. If the situation escalates, the IMF fears that this could mean a return to rising inflation.
The IMF no longer rates inflation as a major risk. However, it is concerned by the latest figures from the US, where consumer prices have risen faster than anticipated. Most of the progress on inflation has come from the decline in energy prices as well as cheaper goods from China, but service inflation remains high. Bringing inflation down to the target level therefore remains the priority for the central banks. If this means interest rates are not lowered in the coming months as anticipated, that could lead to further woes for the economy.
The US economy is projected to grow by 2.7%, 1.2% more than forecast in fall 2023. Growth of as much as 5.3% is expected for the Chinese economy. The economy in the euro area is set to grow by 0.8%. Development in this region is being curbed by the German economy in particular, which is forecast to grow by just 0.2%, 0.3% less than the previous forecast in January.
Developments on the sensor market
According to the members of the German Electrical and Electronic Manufacturers' Association (ZVEI), orders in the German electrical and digital industry continued to decline in the opening months of 2024. Orders from Germany decreased by 8.1%, while orders from abroad fell by 12.4%. Production was down by 5.9% as against the previous year's level. Around half of the member companies do not expect this level to change in the next six months.
The members of the German Association for Sensors and Measurement (AMA) also reported a further drop in sales of 6.0% in the fourth quarter of 2023. Incoming orders decreased by 3.0% over the same period. The fourth quarter of 2023 was therefore tougher than expected for sensors and measurement technology. The association's members are cautiously optimistic for 2024 and are forecasting sales growth of 2.0%.
2.1.2 Financial position and financial performance
Sales development
First Sensor generated sales of €59.7 million in the first half of the 2024 financial year (October 1, 2023 to September 30, 2024), a year-on-year reduction of 10.1% (previous year: €66.3 million). Sales of €30.3 million were generated in the first quarter of 2024 (previous year: €30.7 million). Sales amounted to €29.4 million in the second quarter (previous year: €35.6 million). Owing to the downturn in the industrial sector and the postponement of the anticipated catch-up effects until the next financial year, the Management Board has lowered its full-year sales forecast. While sales of between €135 million and €145 million had initially been assumed for the 2024 financial year, the new forecast is for €115 million to €125 million.
Looking at the regions, there was a pronounced decline in sales in the DACH region (Germany, Austria, Switzerland, Liechtenstein) and in North America. After €42.7million in the same period of the previous year, sales of €32.9million were generated in the DACH region in the first half of the year, accounting for 55.1% of total sales. Sales in North America declined from €5.4million to €3.8million (6.3% of total sales). The second most important sales market was Asia, where sales amounted to €11.9million (19.9% of total sales; previous year: €6.8million). Sales performance in the rest of Europe was stable at €11.1million (previous year: €11.3million), accounting for 18.6% of total sales.
| € thousand | 6M 2023 | 6M 2024 | Absolute change | In % |
|---|---|---|---|---|
| DACH* | 42,742 | 32,879 | -9,863 | -23.1 |
| Rest of Europe | 11,318 | 11,069 | -249 | -2.2 |
| North America | 5,386 | 3,762 | -1,624 | -30.2 |
| Asia | 6,800 | 11,865 | 5,065 | 74.5 |
| Others | 80 | 85 | 5 | 6.8 |
| Total | 66,326 | 59,659 | -6,667 | -10.1 |
Germany, Austria, Switzerland, Liechtenstein
Order situation
The sales decline in the first half of the 2024 financial year is reflected in the order situation. Following new orders of just €24.1 million in the first quarter, this figure improved only slightly to €25.8 million in the second quarter. Incoming orders therefore amounted to €50.0 million after the first six months of the 2024 financial year (previous year: €58.8 million).
Orders on hand continued to fall as against the previous quarter, amounting to €69.9 million after €101.7 million in the previous year. The book-to-bill ratio was 0.87 after the first half of the year (previous year: 1.09) and is therefore in line with the reduced sales forecast.
| Oct. 1, 2022 | Oct. 1, 2023 | |||
|---|---|---|---|---|
| € thousand | - Mar. 31, 2023 | - Mar. 31, 2024 | Absolute change | In % |
| Sales | 66,326 | 59,659 | -6,667 | -10.1 |
| Product sales | 63,421 | 57,521 | -5,900 | -9,3 |
| Sales from services | 2,905 | 2,138 | -767 | -26.4 |
| Incoming orders | 58,823 | 49,956 | -8,867 | -15.1 |
| Orders on hand | 101,730 | 69,900 | -31,830 | -31.3 |
| Book-to-bill ratio | 1.09 | 0.87 | -0.22 | -20.3 |
Results
| € thousand | 6M 2023 | 6M 2024 | Absolute change |
In % |
|---|---|---|---|---|
| Sales | 66,326 | 59,659 | -6,667 | -10.1 |
| Other operating income | 670 | 291 | -379 | -56.5 |
| Changes in inventories of finished goods and work in progress | 6,794 | 3,216 | -3,578 | -52.7 |
| Other own work capitalized | 16 | 0 | -16 | -100.0 |
| Cost of materials/cost of purchased services | -34,515 | -26,750 | 7.765 | -22.5 |
| Gross profit | 39,291 | 36,417 | -2,874 | -7.3 |
| Staff costs | -21,235 | -21,547 | -312 | 1.5 |
| Other operating expenses | -7,657 | -6,225 | 1,432 | -18.7 |
| EBITDA | 10,399 | 8,645 | -1.754 | -16.9 |
| Depreciation of property, plant and equipment and amortization of intangible assets |
-3,680 | -3,497 | 183 | -5.0 |
| EBIT | 6,719 | 5,148 | -1,571 | -23.4 |
| Financial result | 15 | 378 | 363 | >200 |
| Profit before taxes and non-controlling interests | 6,735 | 5,526 | -1,209 | -18.0 |
| Income taxes | 2 | -164 | -166 | >200 |
| Profit or loss for the period | 6,737 | 5,362 | -1,375 | -20.4 |
First Sensor's sales decreased by 10.1% to €59.7 million in the first six months of the 2024 financial year (previous year: €66.3 million). After €30.3 million in the first quarter, sales amounted to €29.4 million in the second quarter. This development is reflected in the revised forecast for the year as a whole, which anticipates sales of between €115 and €125 million.
Inventories of finished goods and work in progress increased by €3.2 million in the first six months of the 2024 financial year, predominantly in work in progress. There was no further own work capitalized (previous year: €16 thousand). Other operating income was down year-on-year at €0.3 million (previous year: €0.7 million), resulting in gross revenue of €62.9 million (previous year: €73.1 million).
The cost of materials fell sharply by 22.5% to €26.8 million (previous year: €34.5 million), predominantly as a result of the decline in sales and the lower rise in inventories. The cost of materials ratio in relation to gross revenue improved significantly to 44.8% (previous year: 52.8%). This resulted in gross profit of €36.4 million (previous year: €39.3 million).
Meanwhile, staff costs rose slightly to €21.5 million (previous year: €21.2 million). In conjunction with the drop in sales, the staff costs ratio deteriorated considerably to 34.3% (previous year: 29.0%). Other operating expenses declined slightly to €6.2 million (previous year: €7.7 million).
Operating EBITDA fell from €10.4 million in the previous year to €8.6 million, resulting in an EBITDA margin of 14.5% (previous year: 15.7%).
Changes in depreciation and amortization were insignificant and amounted to €3.5 million (previous year: €3.7 million) as the most recent investments have not yet been fully capitalized. Operating EBIT amounted to €5.1 million in the first half of 2024 (previous year: €6.7 million) with an EBIT margin of 8.6% (previous year: 10.1%). As the key performance indicators have been changed for the 2024 financial year, no forecast is published for the EBIT margin.
The financial result amounted to €0.4 million after the first six months. This was higher than in the previous year (€15 thousand) as a result of the rise in interest rates. Earnings before taxes for the first half of 2024 thus amounted to €5.5 million (previous year: €6.7 million). No (deferred) taxes were incurred in the reporting period on account of the tax group with TE Connectivity; the reported taxes are predominantly provisions for corporation tax on non-controlling interests. The result for the period amounts to €5.4 million (previous year: €6.7 million). This translates to basic/diluted earnings per share outstanding of €0.52/0.52 (previous year: €0.65/0.65).
Capital structure
The equity of the First Sensor Group increased to €129.2 million as of March 31, 2024 (September 30, 2023: €126.8 million) as a result of net retained profits. The equity ratio improved to 79.6% compared with 75.1% as of the end of the previous year.
Non-current financial liabilities were reduced further to €6.3 million (September 30, 2023: €7.5 million). Within current liabilities, trade payables declined by €2.0 million to €12.7 million. Current financial liabilities increased to €6.7 million after €4.5 million at the end of the previous year, predominantly as a result of profit transfer liabilities to TE Connectivity. Other current liabilities have decreased since the end of the previous year on account of lower VAT liabilities and other provisions.
Cash and cash equivalents and cash pool receivables declined by a total of €5.5 million compared with September 30, 2023 to €23.9 million (previous year: €29.4 million). Overall, First Sensor has a net cash position of €17.0 million, down by €7.2 million as against the end of the previous financial year (September 30, 2023: €24.2 million). The decline in cash pool receivables since the end of the previous year was primarily due to capital expenditure in the reporting period.
| € thousand | Sept. 30, 2023 | March 31, 2024 | Absolute change | In % |
|---|---|---|---|---|
| Non-current financial liabilities | 7,518 | 6,338 | -1,180 | -15.7 |
| Current financial liabilities | 4,540 | 6,719 | 2,179 | 48.0 |
| Cash and cash equivalents | 1,531 | 801 | -730 | -47.7 |
| Cash pool receivables | 27,832 | 23,112 | -4,720 | -16.7 |
| Pledged bank balances | 6,906 | 6,108 | -798 | -11.6 |
| Net debt (-)/net cash (+) | 24,211 | 16,963 | -7,248 | -29.9 |
It can also be assumed for the future that First Sensor will be in a position to finance operating business and planned growth from the resources at its disposal and in association with TE Connectivity.
First Sensor does not use off-balance sheet financing instruments.
Investments
Cash investments amounted to €3.6 million in the first half of the 2024 financial year (previous year: €8.6 million), thereby slightly exceeding depreciation and amortization of €3.6 million. More than half of the planned investment volume for the financial year of between €8 million and €10 million will not be invested until the second half of the year. The focus of investments is on expanding capacity and modernization.
| Oct. 1, 2022 | Oct. 1, 2023 | |
|---|---|---|
| € thousand | - Mar. 31, 2023* | - Mar. 31, 2024 |
| Investments in intangible assets | 37 | 214 |
| Investments in property, plant and equipment | 8,521 | 3,342 |
| Cash investments | 8,558 | 3,556 |
| Sale of intangible assets and property, plant and equipment | 0 | 62 |
| Changes in investments in financial assets | 12,231 | 4,721 |
| Other effects | 106 | 507 |
| Cash flow from investing activities | 3,778 | 1,733 |
| Amortization of intangible assets | -821 | -281 |
| Depreciation of property, plant and equipment | -2,859 | -3,216 |
| Depreciation and amortization | -3,680 | -3,497 |
* The column has been restated compared to the previous year's report. Further disclosures under 4.4
Liquidity
The operating cash flow was still negative at €-1.0 million after the first six months of the financial year (previous year: €+1.5 million). This is predominantly due to the reduction in VAT receivables.
The cash outflow from investing activities was down on the previous year's level at €1.7 million (previous year: €3.8 million).
The cash outflow from financing activities amounted to €-1.5 million. The prior-year figure (€-4.3 million) was due to principal repayments.
Free cash flow, the total of operating cash flow and cash flow from investing activities, was positive at €0.8 million in the reporting period (previous year: €5.3 million).
| € thousand | 6M 2023* | 6M 2024 |
|---|---|---|
| Operating cash flow | 1,473 | -960 |
| Cash flow from investing activities | 3,778 | 1,733 |
| Cash flow from financing activities | -4,299 | -1,534 |
| Change in cash and cash equivalents | 952 | -761 |
| Exchange differences | 0 | 0 |
| Cash and cash equivalents at the beginning of the period | 899 | 1,531 |
| Cash and cash equivalents at the end of the period | 1,851 | 770 |
| Free cash flow | 5,251 | 773 |
* The column has been restated compared to the previous year's report. Further disclosures under 4.4
Net assets
Total assets declined to €162.3 million over the first six months of the 2024 financial year (September 30, 2023: €169.0 million).
There were no notable changes within non-current assets as a majority of the investments in property, plant and equipment have not yet been capitalized.
Within current assets, inventories increased by a further €3.6 million to €47.2 million (September 30, 2023: €43.6 million), predominantly in the area of semi-finished goods. Trade receivables fell by €6.3 million to €10.3 million (previous year: €16.6 million) in line with the development in sales.
The overall decrease in cash funds and cash pool receivables of €5.5 million to €23.9 million in the reporting period is essentially due to the increase in capital expenditure and the further rise in inventories.
Working capital, i.e. inventories plus trade receivables less advance payments and trade payables, decreased slightly to €44.9 million over the first six months (September 30, 2023: €45.5 million). Capital employed declined to €121.4 million after €122.7 million as of the end of the previous year.
2.1.3 Overall statement
Business performance in the first six months of the 2024 financial year was largely defined by the difficult economic landscape. The weakness of the industrial sector meant that sales amounted to €59.7 million, 10.1% lower than the previous year's level. As it has become apparent that the anticipated catch-up effects will be delayed until the next financial year, the Management Board has reduced its sales forecast for the 2024 financial year to between €115 and €125 million. The original guidance had been for sales of between €135 and €145 million.
The second key performance indicator, the investment volume, was forecast at €8 million to €10 million for the 2024 financial year. A significant share of this volume, €3.6 million, was already invested in the first half of the year. It is expected that the share for the second half of the year will be even higher and that the target will be achieved.
2.2 FORECAST REPORT AND OPPORTUNITY AND RISK REPORT 2.2.1 Forecast report
General economic and sector conditions
The International Monetary Fund (IMF) has slightly raised its forecast for global growth. According to the IMF, the world economy is expected to expand by 3.2% in 2024, 0.3 percentage points more than expected in fall 2023. The IMF no longer rates inflation as a major risk to the world economy. While the global rate of inflation was still 9.4% in 2022, it is set to fall to 2.8% by the end of 2024 and 2.4% the following year, according to the new forecast.
The projected growth is not especially high by global standards, the historic average is 3.8%. The IMF anticipates a slight improvement in Germany's economic performance in the coming year. However, it has downwardly revised its forecast sharply and now expects growth of just 1.3%. The IMF's assessment of future prospects is sobering, with Germany set for only a modest and gradual recovery in the coming years.
Following a weak first quarter of 2024 and against the backdrop of a slight improvement in indicators as a result of falling inflation, rising wages and income, a consistently stable development on the labor market and growing stimulus from foreign trade as the year progresses, leading German research institutes are forecasting a tangible economic recovery. The expected recovery nonetheless remains subject to some uncertainty, especially as regards geopolitical developments. The tentative rise in incoming orders in manufacturing is being interpreted as a sign of gradual industrial stabilization.
Development of the sensor market
According to a study by Allied Market Research, the global sensor market is set to grow to around USD 345 billion by 2028 with a CAGR (Compound Annual Growth Rate) of 8.9%. Sensors detect events or changes in the environment and then provide a corresponding signal. Sensors typically monitor physical properties such as light, heat, movement, moisture or pressure and respond by sending a signal to a display screen, or by transmitting the information electronically for further processing. Sensors will also play a key role in the future, e.g. in the areas of environmental monitoring, traffic monitoring and control, energy monitoring, remote monitoring and diagnosis of systems and autonomous driving.
The key factors driving the growth of the sensor market include rising demand for IoT technologies, the development of smart cities, the growing use of smartphones and other electronic devices, as well as progress in automation. The proliferation of wearable devices and innovative applications in the biomedical sector and the automotive sector are also creating growth prospects for the global sensor market.
Business performance forecast for 2024
Sales
Business performance in the first six months of the 2024 financial year was largely defined by the difficult economic landscape. The weakness of the industrial sector meant that sales amounted to €59.7 million, 10.1% lower than the previous year's level. In view of the order situation, it is already apparent that the anticipated catch-up effects will be delayed until the next financial year. The Management Board has therefore reduced its sales forecast for the 2024 financial year to between €115 and €125 million.
Investments
The second key performance indicator, the investment volume, was forecast at €8 million to €10 million for the 2024 financial year. A significant share of this volume, €3.6 million, was already invested in the first half of the year. It is expected that the share for the second half of the year will be even higher and that the target will be achieved.
Financial position
Customer call-offs under supply agreements fell short of expectations in some cases and the availability of individual components is still experiencing disruption. These two factors are causing inventories to rise, in particular in semi-finished goods. These inventories are to be reduced again over the course of the financial year. Nonetheless, working capital will remain largely stable in the second half of the financial year. The liquidity position provides sufficient flexibility to finance operations and investments, in particular also thanks to the combination with TE Connectivity.
Overall statement
First Sensor felt the effects of the economic downturn in the first half of the 2024 financial year, especially in the industrial sector, and its sales fell short of the original forecast. The Management Board has therefore lowered its sales guidance for the 2024 financial year to between €115 and €125 million. The implementation of planned investments will continue to accelerate in the second half of the year, meaning that the projected level of between €8 million and €10 million should be achieved in the 2024 financial year. These investments will enable the company to expand its capacity and enhance its efficiency. Both are key to First Sensor's future planned growth trajectory.
2.2.2 Report on risks and opportunities
The risks and opportunities for the First Sensor Group are explained in detail in its 2023 Annual Report. There have been no significant changes to the matters described in this report since it was published.
3. INTERIM CONSOLIDATED FINANCIAL STATEMENTS 2024
3.1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS)
3.1.1 Assets
| € thousand | Sept. 30, 2023 |
March 31, 2024 |
Absolute change |
|---|---|---|---|
| Intangible assets | 2,801 | 2,560 | -241 |
| Goodwill | 15,979 | 15,979 | 0 |
| Property, plant and equipment | 53,144 | 53,394 | 250 |
| Non-current financial assets | 5,281 | 4,483 | -798 |
| Total non-current assets | 77,205 | 76,416 | -789 |
| Inventories | 43,622 | 47,241 | 3,619 |
| Trade receivables | 16,599 | 10,346 | -6,253 |
| Financial assets | 29,458 | 24,737 | -4,721 |
| Other current assets | 576 | 2,772 | 2,196 |
| Cash and cash equivalents | 1,531 | 801 | -730 |
| Total current assets | 91,786 | 85,896 | -5,890 |
| Total ASSETS | 168,991 | 162,312 | -6,679 |
3.1.2 Equity and liabilities
| € thousand | Sept. 30, 2023 |
March 31, 2024 |
Absolute change |
|---|---|---|---|
| Issued capital | 51,657 | 51,657 | 0 |
| Capital reserves | 10,811 | 10,811 | 0 |
| Retained earnings | 64,367 | 66,752 | 2,385 |
| Total equity | 126,835 | 129,220 | 2,385 |
| Provisions for pensions | 184 | 200 | 16 |
| Non-current financial liabilities | 7,518 | 6,338 | -1,180 |
| Other non-current financial liabilities | 2,321 | 2,319 | -2 |
| Total non-current liabilities | 10,023 | 8,857 | -1,166 |
| Provisions for taxes | 838 | 330 | -508 |
| Other current provisions | 168 | 116 | -52 |
| Current financial liabilities | 4,540 | 6,719 | 2,179 |
| Advance payments received on orders | 17 | 13 | -4 |
| Trade payables | 14,736 | 12,710 | -2,026 |
| Other current liabilities | 11,834 | 4,346 | -7,488 |
| Total current liabilities | 32,133 | 24,235 | -7,898 |
| Total EQUITY AND LIABILITIES | 168,991 | 162,312 | -6,679 |
3.2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS)
3.2.1 Consolidated income statement
| Oct. 1, 2022 | Oct. 1, 2023 | ||
|---|---|---|---|
| € thousand | - Mar. 31, 2023 | - Mar. 31, 2024 |
Absolute change |
| Sales | 66,326 | 59,659* | -6,667 |
| Other operating income | 670 | 291 | -379 |
| Changes in inventories of finished goods and work in progress | 6,794 | 3,216 | -3,578 |
| Other own work capitalized | 16 | 0 | -16 |
| Cost of materials/cost of purchased services | -34,515 | -26,750 | 7,765 |
| Gross profit | 39,291 | 36,417 | -2,874 |
| Staff costs | -21,235 | -21,547 | -312 |
| Other operating expenses | -7,657 | -6,225 | 1,432 |
| EBITDA | 10,399 | 8,645 | -1,754 |
| Depreciation of property, plant and equipment and amortization of intangible assets | -3,680 | -3,497 | 183 |
| EBIT | 6,719 | 5,148 | -1,571 |
| Financial result | 15 | 378 | 363 |
| Profit before taxes and non-controlling interests | 6,735 | 5,526 | -1,209 |
| Income taxes | 2 | -164 | -166 |
| Profit or loss for the period | 6,737 | 5,362 | -1,375 |
| Net profit/loss for the period attributable to First Sensor AG shareholders before transfer to TE Connectivity |
6,737 | 5,362 | -1,375 |
| Net profit for the period attributable to minority interests | 0 | 0 | 0 |
| Earnings per share in € (basic) | 0.65 | 0.52 | -0.13 |
| Earnings per share in € (diluted) | 0.65 | 0.52 | -0.13 |
*See 4.3. for details.
3.2.2 Other comprehensive income
| Oct. 1, 2022 | Oct. 1, 2023 | |
|---|---|---|
| € thousand | - Mar. 31, 2023 | - Mar. 31, 2024 |
| Profit or loss for the period | 6,737 | 5,362 |
| Actuarial gains and losses on defined benefit plans | 0 | 0 |
| Taxes on changes in value offset directly against equity | 0 | 0 |
| Items not subsequently reclassified to profit or loss | 0 | 0 |
| Changes from currency translation | 0 | 0 |
| Remeasurement of derivative financial instruments | 0 | 0 |
| Expenses recycled to profit or loss | 0 | 0 |
| Taxes on changes in value offset directly against equity | 0 | 0 |
| Items that can be subsequently reclassified to profit or loss | 0 | 0 |
| Total other comprehensive income | 0 | 0 |
| Total comprehensive income | 6,737 | 5,362 |
| Thereof attributable to First Sensor AG shareholders | 6,737 | 5,362 |
| Thereof attributable to non-controlling interests | 0 | 0 |
3.3 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS)
| Number of shares in |
Issued | Capital | Retained | Other | Non controlling |
||
|---|---|---|---|---|---|---|---|
| € thousand | thousands | capital | reserves | earnings | reserves | interests Total equity | |
| As of October 1, 2023 | 10,331 | 51,657 | 10,811 | 64,367 | 0 | 0 | 126,835 |
| Profit or loss | 0 | 0 | 0 | 5,362 | 0 | 0 | 5,362 |
| Income and expense recognized directly in equity | 0 | 0 | 0 | 1,264 | 0 | 0 | 1,264 |
| Total comprehensive income | 0 | 0 | 0 | 6,626 | 0 | 0 | 6,626 |
| Profit transfer to TE | 0 | 0 | 0 | -4,241 | 0 | 0 | -4,241 |
| As of March 31, 2024 | 10,331 | 51,657 | 10,811 | 66,752 | 0 | 0 | 129,220 |
3.4 CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS)
| Oct. 1, 2022 | Oct. 1, 2023 | |
|---|---|---|
| € thousand | - Mar. 31, 2023* | - Mar. 31, 2024 |
| PROFIT BEFORE TAXES | 6,735 | 5,526 |
| Interest paid | 31 | -398 |
| Depreciation of property, plant and equipment and amortization of intangible assets | 3,680 | 3,497 |
| Gains/losses on the disposal of non-current assets | 75 | 32 |
| Other non-cash expenses/income | 0 | 0 |
| Changes in provisions | -195 | -36 |
| Changes in working capital | -2,111 | 3,399 |
| Changes in other assets and liabilities | -6,743 | -12,308 |
| Income taxes paid | 2 | -672 |
| CASH FLOW FROM OPERATING ACTIVITIES | 1,473 | -960 |
| Payments for investments in property, plant and equipment and intangible assets | -8,558 | -3,556 |
| Proceeds from disposal of property, plant and equipment, intangible assets and equity investments |
0 | 62 |
| Changes of investments in financial assets | 12,231 | 4,721 |
| Interest received | 106 | 507 |
| CASH FLOW FROM INVESTING ACTIVITIES | 3,778 | 1,733 |
| Proceeds from shareholders | 282 | 0 |
| Dividends paid/profit transfer | 0 | 0 |
| Repayments of financial liabilities | -4,091 | -1,050 |
| Repayments of lease liabilities | -353 | -375 |
| Interest paid | -137 | -109 |
| CASH FLOW FROM FINANCING ACTIVITIES | -4,299 | -1,534 |
| CASH-EFFECTIVE CHANGE IN CASH AND CASH EQUIVALENTS | 952 | -761 |
| Changes in cash and cash equivalents due to exchange rate movements | 0 | 0 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 899 | 1,531 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 1,851 | 770 |
* The column has been restated compared to the previous year's report. Further disclosures under 4.4
4. NOTE
This interim report of First Sensor AG as of March 31, 2024 was prepared in accordance with the International Financial Reporting Standards (IFRS) as applicable in the EU and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC).
The provisions of IAS 34 were complied with in the interim financial statements as of March 31, 2024. These are condensed financial statements that do not contain all the disclosures of IFRS consolidated financial statements, so these financial statements must be read in conjunction with the notes to the 2023 annual report.
4.1 DEVELOPMENT OF THE FIRST SENSOR GROUP
The First Sensor Group consists of the parent company First Sensor AG, based in Berlin, and one subsidiary. First Sensor AG is the sole shareholder of First Sensor Lewicki GmbH. There were no changes in the consolidated group in the period from October 1, 2023 to March 31, 2024.
Non-current assets of €76,402 thousand and investments in non-current assets of €3,556 thousand relate exclusively to Germany.
The average number of full-time employees of the First Sensor Group was 672 in the reporting period.
4.2 INTANGIBLE ASSETS
| Concessions, | Internally | ||||
|---|---|---|---|---|---|
| € thousand | licenses and similar |
generated intangible assets Customer base |
Payments on account |
Total | |
| Cost of purchase | |||||
| October 1, 2023 | 8,319 | 3,446 | 19,573 | 82 | 31,421 |
| Additions | 0 | 0 | 0 | 214 | 214 |
| Disposals | 0 | 0 | 0 | 0 | 0 |
| Reclassifications | 34 | 0 | 0 | -196 | -162 |
| March 31, 2024 | 8,353 | 3,446 | 19,573 | 100 | 31,472 |
| Cumulative depreciation | |||||
| October 1, 2023 | 7,366 | 1,629 | 19,573 | 51 | 28,619 |
| Additions | 146 | 148 | 0 | 0 | 294 |
| Disposals | 0 | 0 | 0 | 0 | 0 |
| Reclassifications | 0 | 0 | 0 | 0 | 0 |
| Exchange differences | 0 | 0 | 0 | 0 | 0 |
| March 31, 2024 | 7,512 | 1,776 | 19,573 | 51 | 28,913 |
| Carrying amount as of October 1, 2023 | 953 | 1,818 | 0 | 31 | 2,801 |
| Carrying amount as of March 31, 2024 | 841 | 1,670 | 0 | 48 | 2,560 |
Intangible assets were neither pledged as security for liabilities nor otherwise restricted as of the end of the reporting period.
4.3 NOTES TO SALES REVENUE
Revenue of EUR 59.7 million includes revenues of EUR 2.1 million attributable to the previous financial year. This was determined after the end of the 2023 financial year as part of an audit of transfer prices.
4.4 NOTES TO THE STATEMENT OF CHANGES IN EQUITY
As a result of the profit transfer agreement with TE Connectivity Sensors Germany Holding AG, the dividend distribution in the 2023 financial year was again carried out by TE Connectivity Sensors Germany Holding AG and thus did not affect the equity of First Sensor AG.
4.5 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
In accordance with IAS 7 "Statement of Cash Flows", First Sensor reports the cash flow from operating activities using the indirect method, in which the profit or loss for the period is adjusted by the effects of non-cash transactions, deferrals of past orfuture inflows and outflows from operating activities and items of income or expense in connection with the cash flow from investing or financing activities. The reconciliation is based on earnings before taxes; tax payments are presented within the operating cash flow, interest received as part of the cash flow from investing activities and interest paid as part of the cash flow from financing activities. Loans to companies in the TE Connectivity Group (cash pool) are also allocated to investing activities, as the cash pool does not meet the requirements for cash and cash equivalents or other financial resources.
In the 2023 financial year, it was determined that the cash pool receivable previously included in cash and cash equivalents does not satisfy the requirements for recognition as cash and cash equivalents in accordance with IAS 7. This was retroactively corrected in the annual financial statements for the 2023 financial year in accordance with IAS 8.42 and thus is also taken into account for the first half of 2023. As a result, cash and cash equivalents reported in the statement of cash flows as of March 31, 2023 decreased from €18.5million to €1.9 thousand. The change in the cash pool receivable is now reported under cash flow from investing activities.
The changes in the presentation of the consolidated statement of cash flow described above result in the deviations shown in the table below.
| Reported | Correction | Adjusted value |
|
|---|---|---|---|
| € thousand | 6M 2023 | 6M 2023 | 6M 2023 |
| PROFIT BEFORE TAXES | 6,744 | -9 | 6,735 |
| CASH FLOW FROM OPERATING ACTIVITIES | 1,398 | 75 | 1,473 |
| Payments for investments in financial assets* | 0 | 12,231 | 12,231 |
| CASH FLOW FROM INVESTING ACTIVITIES* | -8,377 | 12,155 | 3,778 |
| CASH FLOW FROM FINANCING ACTIVITIES | -4,299 | 0 | -4,299 |
| CHANGE IN CASH AND CASH EQUIVALENTS* | -11,279 | 12,231 | 952 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD* | 29,779 | -28,880 | 899 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* | 18,501 | -16,650 | 1,851 |
4.6 RELATED PARTY TRANSACTIONS
Related parties as referred to by IAS 24 are the majority shareholder TE Connectivity Sensors Germany Holding AG, TE Connectivity Ltd., Schaffhausen, Switzerland, and its subsidiaries and associates. Transactions with related parties essentially relate to the cash management system, ongoing supply and clearing transactions and service contracts. First Sensor utilizes potential economies of scale by participating in the TE Connectivity Group's cash management system. All transactions with related parties have been contractually agreed and are carried out at arm's length conditions.
Transactions with individuals or companies who can be subject to the influence of First Sensor or who can influence First Sensor must be disclosed unless such transactions have already been recognized in the consolidated financial statements through the inclusion of consolidated companies.
The following transactions were carried out with individuals and companies deemed related parties of First Sensor:
Goods and services between First Sensor and companies of the TE Group:
| Oct. 1, 2022 | Oct. 1, 2023 | |
|---|---|---|
| € thousand | - Mar. 31, 2023 | - Mar. 31, 2024 |
| Sale of goods and services | ||
| Sales | 59,650 | 54,913 |
| Other operating income | 25 | 0 |
| Purchase of goods | ||
| Cost of material | -38,099 | -33,359 |
| Other operating expenses | -1,528 | -1,231 |
| Financing | ||
| Other interest and similar income | 114 | 463 |
Receivables from and liabilities to companies of the TE Group:
| Oct. 1, 2022 | Oct. 1, 2023 | |
|---|---|---|
| € thousand | - Mar. 31, 2023 | - Mar. 31, 2024 |
| Trade | ||
| payables | 22,400 | 8,529 |
| Trade | ||
| receivables | 855 | 7,350 |
4.7 SUPPLEMENTARY REPORT
There were no significant events after the end of the reporting period with an impact on the net assets, financial position and results of operations of the First Sensor Group.
Berlin, 15 May 2024 First Sensor AG
Thibault Kassir Robin Maly Dirk Schäfer
5. RESPONSIBILITY STATEMENT IN ACCORDANCE WITH SECTION 297(2) SENTENCE 4 AND SECTION 315(1) SENTENCE 5 HGB
To the best of our knowledge, and in accordance with the applicable reporting principles for half-year financial reporting, the consolidated half-year financial statements give a true and fair view of the assets, financial position and profit or loss of the Group, and the interim Group 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 in the rest of the financial year.
Berlin, May 15, 2024 First Sensor AG
Thibault Kassir Robin Maly Dirk Schäfer Member of the Management Board
Member of the Management Board Member of the Management Board
First Sensor AG
Peter-Behrens-Strasse 15 12459 Berlin Germany
Tel +49 (0) 30 639923 – 99 Fax +49 (0) 30 639923 – 33 e-mail: [email protected]
Investor Relations
Tel +49 (0) 30 639923 – 760 Fax +49 (0) 30 639923 – 719 e-mail: [email protected] Website www.first-sensor.com/en/investor-relations