Press Release
Stäfa, Switzerland, 07 March 2019
Sensirion: Successful 2018 with Diversified Revenue Growth in All End Markets
Highlights 2018
- Expectations communicated at IPO achieved
- Diversified revenue growth resulted from all end markets: 18% in total, of which 11% organic, 6% inorganic, 1% foreign currency effects
- Successful launch of CO2 and PM2.5 sensors
- Revenue CHF 174.8 million
- Adjusted EBITDA CHF 27.8 million (16% of revenue)
Key Figures
| Consolidated, in millions of CHF |
1 January - 31 December 2018 |
1 January - 31 December 2017 |
| Revenue |
174.8 |
148.0 |
| Gross profit |
93.0 |
85.0 |
| - as % of revenue |
53.2% |
57.5% |
| Adjusted EBITDA |
27.8 |
26.2 |
| - as % of revenue |
15.9% |
17.7% |
| One-off adjustments |
18.6 |
9.7 |
| Cash flow from operating activities |
26.4 |
10.6 |
| Capital expenditures |
(13.5) |
(16.4) |
| Free cash flow |
22.8 |
(40.5) |
| |
As of 31 December 2018 |
As of 31 December 2017 |
| Net cash (Net debt) |
42.6 |
(69.3) |
| Number of employees (FTE) |
783 |
735 |
Sensirion Holding AG, a pure-play sensor company offering environmental and flow sensor solutions, reports a successful fiscal year 2018 with diversified revenue growth in all end markets. With the successful initial public offering (IPO) in March 2018, great progress in positioning Sensirion as a supplier of automotive sensor solutions, and an increased footprint in Asia, important milestones in the strategic development of the company were achieved. In addition, the successful launch of the carbon dioxide and particulate matter sensors significantly expanded Sensirion's product portfolio of environmental sensors.
Expectations communicated at IPO achieved
The results of 2018 show that the expectations communicated at the IPO have been achieved. After a very dynamic first half, which exceeded expectations, the second half of the year resulted in lower revenue growth as expected. The reasons for this development were inventory optimizations of important customers and the global macroeconomic environment which noticeably slowed down in the last months. In all end markets, we currently observe uncertainty how the global economy will further develop.
Consolidated revenue amounted to CHF 174.8 million, +18% compared to the previous year, of which 11% was organic, 6% inorganic, and 1% due to foreign exchange effects. As a result, consolidated revenue was at the upper end of the indication given in connection with the IPO in March 2018. With a gross margin of 53% and, after adjusting for one-off effects, an adjusted EBITDA of CHF 27.8 million (16 % of revenue), the expectations communicated at the IPO could be achieved. One-off effects, in sum CHF 18.6 million, primarily attributable to the "IPO Loyalty Share Program" and other IPO-related costs, resulted in an operating loss of CHF 4.4 million and a net loss of CHF 6.4 million for the period. Generated free cash flow was CHF 22.8 million. Together with the net proceeds from the IPO, this free cash flow yielded a net cash position of CHF 42.6 million as of 31 December 2018.
In connection with the IPO, all employees of Sensirion received under a one-time employee participation plan, the IPO Loyalty Share Program, a gratification in shares. The allocation of shares was primarily based on the duration of employment of each employee up to the IPO. Financially, the IPO Loyalty Share Program impacts the years 2018 and 2019 by
CHF 16.2 million and c. CHF 5.2 million, respectively.
All end markets contributed to revenue growth
With growth ranging between of 3% to 31%, all four end markets contributed to consolidated group revenue.
In the automotive market, revenue increased by CHF 12.9 million to CHF 53.9 million (+ 31%, of which 8% were organic and 23% inorganic). The organic growth came from higher volumes of both humidity and gas flow sensors. Humidity sensors are mainly employed to automatically dehumidify in anti-fogging and climate control applications. The new generation of gas flow sensors, used to measure the mass flow in the air intake of combustion engines, generated its first significant revenue. The acquisition of the sensor module business of Auto Industrial Company (AIC) in South Korea and China in 2017 led to the inorganic growth. Sales volumes of the inherited auto-defogging, ambient temperature, and ionizer modules developed as expected. The acquisition significantly strengthens Sensirion's position as a direct supplier to automotive OEMs.
Revenue in the medical market increased by 15% to CHF 38.6 million. Growth resulted from volume increases of existing projects employing differential pressures sensors in therapeutic devices for sleep apnea and mass flow meters in ventilators.
The diversified industrial market, composed of the markets gas meters, home appliances, heating, ventilation, and air conditioning, and industrial automation, showed revenue growth of 14% to CHF 68.6 million. Revenues through distribution sales channels developed particularly well. The incorporation of the air quality sensor into an air purifier project generated its first significant revenue. Revenue from gas meter projects increased owing to an increase of market share of our technology in the Italian market.
Revenue in the consumer market amounted to CHF 13.7 million (+3%). Revenue from sales of humidity sensors for smart home applications through distribution channels particularly increased. In addition, the new air quality sensor generated its first relevant revenue.
Successful expansion of product portfolio through CO2 and PM2.5 sensors
In 2018, two new product lines, the carbon dioxide (CO2) and particulate matter (PM2.5) sensors, were successfully launched and first products introduced onto the market. Both sensors generated a positive market reaction; the CO2 sensor primarily in the industrial market, and the PM2.5 sensor in the automotive one.
Decisive progress in Sensirion Automotive Solutions and Integration of AIC
In 2017 Sensirion acquired the sensor module business of AIC with the goals of strengthening Sensirion's market position as a supplier of automotive sensors solutions and establishing manufacturing capabilities in China and South Korea. With three manufacturing sites now in Switzerland, China, and South Korea, we have increased our flexibility to manufacture module products cost-efficiently. The integration of the new business division Sensirion Automotive Solutions is proceeding according to plan. After moving into a new production facility in Shanghai, manufacturing of the new CO2 and PM2.5 product lines has successfully begun.
Initial Public Offering
Sensirion was successfully listed on the SIX Swiss Exchange on 22 March 2018. At the IPO, predominantly existing shares held by the majority shareholder, Gottlieb Knoch, were placed. In addition, Sensirion placed newly issued shares in order to increase the financial flexibility for its business development. The Founders and Co-Chairmen Moritz Lechner and Felix Mayer remain fully invested and committed and continue to drive the future development of Sensirion.
Gottlieb Knoch resigned from the Board of Directors with the IPO. Just a few months after its foundation, Mr. Knoch joined Sensirion as a business angel and has actively supported and loyally accompanied the development of the company for almost two decades with his extensive entrepreneurial experience. We would like to take this opportunity to sincerely thank Mr. Knoch for his many years of very valuable support, both as a major shareholder and as a member of the Board of Directors.
Composition of the Board of Directors
The Board of Directors will propose to elect François Gabella and Franz Studer as new members of the Board of Directors at the Annual General Meeting on 14 May 2019. Resumes of Mr. Gabella and Mr. Studer can be found at the end of this press release.
Markus Glauser will not stand for re-election at the Annual General Meeting. We would like to thank Markus Glauser for his valuable service over many years. Both Co-Chairmen and all other members of the Board of Directors will stand for re-election for a further term of office.
Outlook for Financial Year 2019
The global economic situation changed significantly in the second half of 2018. For the first half-year 2019, we expect weaker market demand as well as reduced visibility as a result of increasing economic and political uncertainties and further inventory corrections at customers. In line with customers' outlooks, a positive trend for the second half of this year is likely, provided geopolitical tensions do not intensify. In view of this market scenario and stable exchange rates, we expect full-year revenue to be in the range of CHF 175-190 million, a stable gross margin between 52% and 54%, and an adjusted EBITDA margin in the range of 15-17%. Apart from these short-term uncertainties, Sensirion's long-term fundamentals remain strong and all innovation projects are progressing according to plan.
Conference call on the fiscal year 2018 results
Today, Thursday, 07 March 2019, at 10:00 CET / 09:00 GMT / 04:00 EST, a conference call on the fiscal year 2018 results will be held. The presentation will be held in English. You will have the opportunity to ask questions during the telephone conference following the presentation.
Please register for the conference call with the following link.
https://conferencing.swisscom.ch/conference/webinarRegistrationAction.do?conferenceId=5390677
Documentation
All documents can be accessed at www.sensirion.com/financial-reports.
Condensed Consolidated Financial Statements
| Condensed Consolidated Income Statement |
2018 |
2017 |
| In millions of CHF, for the year ended 31 December |
|
|
| Revenue |
174.8 |
148.0 |
| Cost of sales |
(81.8) |
(63.0) |
| Gross profit |
93.0 |
85.0 |
| Other income |
1.1 |
- |
| Research and development expenses |
(36.3) |
(39.5) |
| Selling, distribution, and administrative expenses |
(62.2) |
(41.8) |
| Operating profit (loss) |
(4.4) |
3.7 |
| Net finance costs |
(2.3) |
(1.5) |
| Profit (loss) before tax |
(6.7) |
2.2 |
| Income taxes |
0.3 |
(3.0) |
| Profit (loss) for the period |
(6.4) |
(0.8) |
| Earnings per share (in CHF) |
(0.45) |
(0.07) |
| Diluted earnings per share (in CHF) |
(0.45) |
(0.07) |
| EBITDA |
9.2 |
16.5 |
| Adjusted EBITDA |
27.8 |
26.2 |
| Revenue by End Markets |
2018 |
2017 |
| In millions of CHF, for the year ended 31 December |
|
|
| Automotive |
53.9 |
41.0 |
| Medical |
38.6 |
33.4 |
| Industrial |
68.6 |
60.3 |
| Consumer |
13.7 |
13.3 |
| Total |
174.8 |
148.0 |
| Condensed Consolidated Statement of Financial Position |
as of 31 December 2018 |
as of 31 December 2017 |
| In millions of CHF |
|
|
| Current assets |
112.3 |
71.3 |
| Non-current assets |
102.6 |
104.8 |
| Total assets |
214.9 |
176.1 |
| Current liabilities |
21.1 |
79.5 |
| Non-current liabilities |
33.4 |
35.6 |
| Total liabilities |
54.5 |
115.1 |
| Total equity |
160.4 |
61.0 |
| Total liabilities and equity |
214.9 |
176.1 |
Condensed Consolidated Statement of Cash Flows |
2018 |
2017 |
| In millions of CHF, for the year ended 31 December |
|
|
| Cash flows from operating activities |
26.4 |
10.6 |
| Cash flows from investing activities |
(3.6) |
(51.0) |
| Cash flows from financing activities |
21.9 |
35.9 |
| Net change in cash and cash equivalents |
44.7 |
(4.5) |
| Cash and cash equivalents at 1 January |
9.4 |
14.0 |
| Cash and cash equivalents at 31 December |
53.9 |
9.4 |
| Capital expenditures |
(13.5) |
(16.4) |
| Free cash flow |
22.8 |
(40.5) |
Financial Calendar
14 May 2019 Annual General Meeting
21 August 2019 Half-year 2019 results and interim report
Resumes of François Gabella and Franz Studer
| François Gabella, Swiss national, born in 1958 |
| Professional Background |
| 2010 - 2018 |
LEM Holding AG, Switzerland: CEO |
| 2006 - 2010 |
Hexagon Metrology, Sweden: member of the Metrology Executive Board, CEO of TESA AG, Switzerland |
| 2002 - 2005 |
AREVA T&D, France: Senior Vice President, Power Transmission & Distribution Division |
| 1999 - 2001 |
Texas Pacific Group, USA: Group CEO of a portfolio company |
| 1993 - 1999 |
ABB Group, Germany and Switzerland: various positions from General Manager to Senior Vice President |
| Education |
| 2006 |
MBA, IMD Lausanne |
| 1982 |
MSc in Micro-Engineering, Ecole Polytechnique Fédérale de Lausanne (EPFL) |
| Other Functions |
| Since 2018 |
Fischer Connectors AG, Switzerland: Member of the Board of Directors |
| Since 2018 |
LEM Holding AG, Switzerland: Member of the Board of Directors |
| Since 2018 |
Sonceboz AG, Switzerland: Member of the Board of Directors |
| Since 2018 |
Winterthur Instruments AG, Switzerland: Chairman of the Board of Directors |
| Since 2018 |
Swissmem, Switzerland: Vice President |
| Since 2018 |
Switzerland Global Enterprsie, Switzerland: Board Member |
| Since 2017 |
Optotune AG, Switzerland: Member of the Board of Directors |
| Franz Studer, Swiss national, born in 1965 |
| Professional Background |
| 2012 - today |
EGS Beteiligungen AG, Switzerland: Investment Director, Member of the Executive Committee |
| 2010 - 2011 |
aizo AG, aizo group AG, Switzerland: CEO/COO |
| 2005 - 2009 |
Bühler AG, Switzerland: Commercial Director, Vice President, Engineered Products |
| 1999 - 2005 |
Bühler AG, Switzerland: various positions |
| 1994 - 1999 |
Law firm Hardmeier & Keller, Zurich, Switzerland: Attorney |
| Education |
| 2007 |
Executive MBA, University of St. Gallen |
| 1999 |
PhD, Faculty of Law, University of Zurich |
| 1994 |
Bar admission, Canton of Zurich |
| 1989 |
Master, Faculty of Law, University Zurich |
| Other Functions |
| Since 2013 |
FAES AG, Switzerland: Chairman of the Board of Directors |
| Since 2013 |
Espros AG, Switzerland: Member of the Board of Directors |
| Since 2015 |
Kantonsspital Winterthur: Chairman of the Board of Directors |
Contact
Investor Relations
Andrea Wüest
Director Investor Relations
Tel: +41 44 927 11 40
E-Mail: andrea.wueest@sensirion.com
About Sensirion Holding AG
Sensirion Holding AG (SIX Swiss Exchange: SENS), headquartered in Stäfa, Switzerland, is a leading manufacturer of digital microsensors and systems. The product range includes gas and liquid flow sensors, differential pressure sensors and environmental sensors for the measurement of humidity and temperature, volatile organic compounds (VOC), carbon dioxide (CO2), and particulate matter (PM2.5). An international network with sales offices in China, Europe, Japan, South Korea, Taiwan, and the US supplies international customers with standard and custom sensor system solutions for a vast range of applications. Sensirion sensors can commonly be found in the automotive, medical, industrial, and consumer end markets. For further information, visit www.sensirion.com.
Disclaimer
Certain statements in this document are forward-looking statements, including, but not limited to, those using words such as "believe", "assume", "expect", and other similar expressions. Such forward-looking statements are based on assumptions and expectations and, by their nature, involve known and unknown risks, uncertainties, and other factors that could cause actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Such factors include, but are not limited to, future global economic conditions, changed market conditions, competition from other companies, effects and risks of new technologies, costs of compliance with applicable laws, regulations, and standards, diverse political, legal, economic and other conditions affecting markets in which Sensirion operates, and other factors beyond the control of Sensirion. In view of these uncertainties, you should not place undue reliance on forward-looking statements. Sensirion disclaims any intention or obligation to update any forward-looking statements, or to adapt them to future events or developments.
Certain financial data included in this document consists of "non-IFRS financial measures". These non-IFRS financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. As a result, you are cautioned not to place undue reliance on any non-IFRS financial measures and ratios included herein.
This document is not an offer to sell, or a solicitation of offers to purchase, any securities.
