fiscal year 2018 - elmos.com · further milestones of main strategic pillars achieved 11 front-end:...
TRANSCRIPT
Analysts´ Conference | Feb 2019
Fiscal Year 2018:Convincing
as our products!
Expert in analog mixed signal solutionsfocused on automotive market
2
Development, production & marketing of ICs & pressure sensors
Sales: ~85% automotive~15% non-automotive
Main strength: design of innovative products and specialized application know how
Elmos serves the megatrends (ADAS, EV…) & attractive niches with benchmark innovations
#1 positions:
Ultrasonic Parking Assistance
Ambient LED Light
Climate Applications
Gesture Control
Soon Rear Light LED & more…
Global player for automotive ASSPs and ASICs
Significant addition to design/application resources
Fablite: Flexible productionstrategy for Frontend and soonfor Backend (Test)
IC = Integrated Circuit / ASSP = Application Specific Standard Product / ASIC = Application Specific Integrated Circuit
35 years experience Worldwide leading products Ready for further growth
From a statistical point of view: >4 Elmos ICs in every new car …soon >5!
An international company with German roots
3
Headquarters in Dortmund, Germany
Worldwide sales offices and application support
~1.300 employees
~350 Engineers in Product Development: Further expansion in 2019!
4
We know what the customer needs:Strong customer base – growing every year
Ideas &Features
Ideas &Features
>400 million ICs p.a. delivered to 300++ customers
Elmos ICs are in almost all cars worldwide
High product and customer diversification
Elmos´ relationship with Tier1s and OEMs Approved partner
Tier1 Elmos ICs OEM
We are an innovative partner for a diversified customer base
5
Selected customers
Automotive OEMs
Baojun
Innovative products and strong market positions serve the mega trends
6
Lighting
Optical
Safety, Power & Custom ICs
Sensor ICsRanging
Motor Control
Business Line 1 - Sensors
Business Line 2 – Smart Control Business Line 3 - Smart Solutions
Right products for autonomous driving, electro mobility, safety, comfort...
Ranging:Advanced features for assisted and autonomous driving
7
From parking assistance to near field surveillance
Global market leader in Ultrasonic ICs
>850 million ICs for near field
surveillance delivered
>20 years experience with USPA ICs
>10 ASSPs: Broad product portfolio
from most affordable to highest
performance
Applications e.g. object localization, level
measuring and flow metering
Next IC generation in development
Optical:Simple & robust user experience in cars
8
Makes the car more intuitive through less distraction
Pioneering in gesture control with
>50 million ICs in the field
Applications e.g. proximity, swipes,
object detection and touchless door
access
2012: Market launch (VW Golf 7)
Today: available in almost all VW group
models – started in BMW models
… more OEMs to come
Technically leading IP protected
Lighting:We light up the car – inside and outside
9
More light quality and higher power efficiency
Worldwide #1 in ambient light control
>30++ million Ambient Light ICs in the
field
IP protected features (Auto addressing)
Homogeneous light from -40°C to
+125°C
Elmos rear lighting solutions set the
standard
Elmos IC already standard for one OEM
Next worldwide #1 position
Constant light intensity even at high
temperatures
Motor control:Highly integrated motor control ICs
10
>500 million ICs for HVAC flaps and blower
delivered
Benchmark for low noise and high
efficiency control solutions for HVAC
blower
5th IC generation in production – more
to come!
Serving all motor types
Focus on BLDC motors supporting CO2
reduction
More comfort and further CO2 reduction
Further milestones of main strategic pillars achieved
11
Front-End: Continuously increasing outsourcing share while own fabs are fully loaded
Back-End: Second wave of outsourcing while expansion of own test capacities ongoing
Successful Asian expansion with disproportionately strong growth in Asia for >5 years
Good design wins from U.S. customers
>140 ASSP products plus many ASICs
Design Wins 2018: very good year
Successful customer and product diversification
ASSP = Application Specific Standard Product / ASIC = Application Specific Integrated CircuitResults based on preliminary, unaudited figures for 2018
Fablite Internationalization ASSPs
~40%~45%
~50%
20172016 20182014 2015
~25%
~35%
~41%
201820152014 2016 2017
~27%~31%
~35%~39%
20162014 2015 2017 2018
~15%~12%
~15%
~25%
~33%
Outsourcing share (wafer) Asian share ASSP share
Positive development of sales and earnings in 2018 –guidance achieved
12
Guidance (as of Oct. 16, 2018) Actuals 2018
Sales 8%-12% (yoy) 10.8%
EBIT margin 17%-19% 18.4%
Capex Less than 15% of sales 14.9%
Adjusted free cash flow Negative −3.3 Mio. Euro
Ø Exchange rate 1.20 US-Dollar / Euro (assumption) 1.18 US-Dollar / Euro
Capex: Capital expenditures for property, plant and equipment and intangible assets, less capitalized development expensesAdjusted free cash flow: Cash flow from operating activities less capital expenditures for / plus disposal of intangible assets and property, plant and equipmentResults based on preliminary, unaudited figures for 2018
Guidance (as of Oct. 16, 2018) Actuals 2018
Positive sales and margin development in 2018
13
42.3%43.6%
228.6
2014 2017
41.7%
2015
43.9%
2016
277.6
45.2%
2018
209.5 219.6250.4
+10.8%
Sales growth due to existing products and new ramp ups
Higher gross margin despite more complex products and numerous new ramp ups
43.3%
49.2%
Q3 2018
40.5%
Q1 2018 Q2 2018
47.0%
Q4 2018
63.569.1 69.4
75.6
High sales level throughout the year with increasing margins
Book-to-bill ratio was at around one at the end of the period
Yearly sales (million Euro) & gross margin (%) Quarterly sales (million Euro) & gross margin (%)
Sales CAGR 2014-2018: +7.3%Results based on preliminary, unaudited figures for 2018
Very satisfying earnings development
14
Five years double-digit EBIT margin in a row
EBIT margin achieved mid-term target level in 2017 and 2018
EPS increased by 42.0% to 1.79 Euro (2017: 1.26 Euro)
2017
10.8% 11.2%
2015
10.1%
2014
15.3%
2016
18.4%
2018
22.6 24.5 23.1
38.4
51.0
+32.8%
Q4 2018
12.4%
Q1 2018
22.4%
17.7%
Q2 2018 Q3 2018
20.2%
7.9
12.214.0
16.9
Besides good operating performance, earnings were positively influenced by the lower opex ratio
Further expansion of development capacities is planned measures already started
Yearly EBIT (million Euro) & EBIT margin (%) Quarterly EBIT (million Euro) & EBIT margin (%)
Results based on preliminary, unaudited figures for 2018
Investing into further growth
15
2017
10.5%14.3%
2014 2015
14.9%
37.2
2016
10.1%
14.9%
2018
29.9
23.0 23.2
41.4
2015 20172014 2016
29.7
2018
10.6 9.1
1
Supportedby tax effects
33.5
2014 20162015
48.4
40.0
2017 2018
37.9
50.3
Definitions of selected financial indicators - Adjusted free cash flow: Cash flow from operating activities less capital expenditures for/plus disposals of intangible assets and property, plant and equipment- Capital expenditures: Capital expenditures for intangible assets and property, plant and equipment less capitalized development expenses1 Disregarding one-off effect from sale and lease back structure of ca. 14 million Euro // Results based on preliminary, unaudited figures for 2018
20182014 2016
47.0
2015 2017
53.7 55.4
33.2
16.9
Burdenedby tax effects
1
1
−5.2 −3.3
Capex (million Euro & % of sales) Operating cash flow (million Euro)
Adjusted free cash flow (million Euro) Net cash (million Euro)
Constant or increasing dividend since 2010
16
7.9*
9
11
8
5
6
3
10
7
43.9
4.8 4.8
6.5
0.35
2014 2015
6.9
2016
0.40
7.9
0.33
2017
0.52*
10.3
2018
4.8
201320122011
6.5
0.33
2010
0.25
0.20
0.25 0.25
+25%
+32%
+14%
+30.0%
Share buyback
2017: Purchase of 450,000 shares for a total of 9.7 million Euro
2018/2019: Resolution to purchase up to 1 million shares for a total of roughly 21 million Euro and a maximum of 21 Euro per share (as of Feb. 14, 2019: 86.316 shares for ~1.7 million Euro)
Dividend (in Euro) & total payout (in million Euro)
* Proposal for the AGM on May 15, 2019
Market environment 2019: uncertain economic conditions
17
Daily Newspaper Headlines Market Outlook
Worldwide economics (GDP)1
Europe ↘
China ↘
US ↘
1 IMF 2 VDA
3.7%
2017 2018 2019
3.8%
Wo
rld
wid
e G
DP
dev
elo
pm
ent
yoy
3.5%
New car registrations in million units2
Europe ↗
China ↗
US →
85 85 86
2017 2018 2019
New
car
regi
stra
tio
ns
in m
illio
nu
nit
s
Guidance 2019: further growth expected
Capex: Capital expenditures for property, plant and equipment and intangible assets, less capitalized development expensesAdjusted free cash flow: Cash flow from operating activities less capital expenditures for / plus disposal of intangible assets and property, plant and equipment
As of February 14, 2019
Sales 6%-10% (yoy)
EBIT margin 13%-17%
Capex <15% of sales
Adjusted free cash flow Positive
Ø Exchange rate 1.15 US-Dollar / Euro (assumption)
18
As of February 13, 2019
The Next Smart Device: The Car
Analysts´ Conference | Feb 2019
Elmos shareholder structure set for long-term perspective
Based on a share capital of 20,103,513 shares / Euro as of Dec. 31, 2018 20
20.0%
14.1%
14.8%
1.8%
49.3%
Weyer Beteiligungsgesellschaft mbHand related parties
ZOE-VVG GmbHand related parties
Jumakos BeteiligungsgesellschaftmbH
Treasury Stock
Free float (thereof 5.01% Teslin CapitalManagement B.V. as of May 5, 2017 and3.02% JPMorgan Asset Management(UK) Limited as of November 9, 2018)
2121
Research Coverage and Elmos Financial Calendar
As of January 31, 2019
Event Date
Preliminary Results 2018* February 14, 2019
Analysts Conference (Conference Call/Webcast) February 14, 2019
Financial Results 2018* March 14, 2019
Quarterly Results Q1 2019* May 8, 2019
AGM in Dortmund, Germany May 15, 2019
Quarterly Results Q2 2019* August 1, 2019
Quarterly Results Q3 2019* November 6, 2019
* The German Securities Trading Act (Wertpapierhandelsgesetz) and the Market Abuse Regulation (EU) oblige issuers to immediately announce any information that may have a substantial price impact, irrespective of the communicated schedules. Therefore it is possible that we will announce key figures of quarterly and annual results ahead of the dates listed above. As we can never rule out changes of dates, we recommend checking dates and news ahead of schedule on the Company’s website (www.elmos.com).
Institution Analyst Recommendation
Deutsche Bank Johannes Schaller Hold
DZ Bank Harald Schnitzer Hold
Hauck & Aufhäuser Robin Brass Hold
NIBC Edwin de Jong Buy
Oddo BHF Stéphane Houri Neutral*
Warburg Research Malte Schaumann Buy
Event Date
Institution Analyst Recommendation
* As of 01/14/2019 from Veysel Taze
Elmos Semiconductor AG
Heinrich-Hertz-Str. 1 | 44227 Dortmund | Germany
Telephone: + 49 231 75 49 273 | Telefax: + 49 231 75 49 111
[email protected] | www.elmos.com
DISCLAIMER
This presentation contains forward-looking statements based on beliefs of Elmos‘ management.
Such statements reflect the company‘s current views with respect to future events and are
subject to risks and uncertainties. Many factors could cause the actual results to be materially
different, including, among others, changes in general economic and business conditions,
changes in currency exchange rates and interest rates, introduction of competing products, lack
of acceptance of new products or services and changes in business strategy. Actual results may
vary materially from those projected here. Elmos does not intend or assume any obligation to
update these forward-looking statements.
22