The power of light. Better futures by harnessing the potential of light. Investor Relations Presentation. March 2019

Transcription

1 The power of light. Better futures by harnessing the potential of light. Investor Relations Presentation March 219 Copyright Jenoptik. All rights reserved.

2 Agenda 1 Overview and strategy 2 Financials 218 and outlook 3 Appendix Jenoptik Investor Relations Presentation 2

3 Jenoptik a leading player in attractive photonic sectors Photonics is moving markets and changing the world around us. Jenoptik has the skills, experience and proven track record to lead the way Foundation Attractive markets Leading market positions Strong financial base Clear targets Attractive photonic applications Photonics market: ~6bn euros, CAGR 5-6% Customer-oriented, international partner, leading market positions on a global scale Strong financial position for accelerated growth and margin expansion Transforming Jenoptik into a focused technology group >4, Employees ~1.9bn Market cap >8 Countries worldwide 218 Revenue 834.6m EBITDA 15.3% Jenoptik Investor Relations Presentation 3

4 Our new structure since January 219: Focused divisions and technology synergies.... Photonic Mechatronic.. LIGHT & OPTICS OEM-Business LIGHT & PRODUCTION B2B-Business LIGHT & SAFETY B2G-Business Development & production partner for OEM customers Optical components, modules and systems for the semiconductor manufacturing, communication industries and biophotonics Merger of former Optical Systems and Healthcare & Industry divisions Engineering business with focus on smart manufacturing and process automation solutions for industrial customers Using primarily Optical and Photonic technologies, esp. for the automotive industry Former Automotive division Providing imaging based solutions for Public Safety in combination with intelligent data management Former Traffic Solutions division Mechatronic solutions for partners in the Aviation, Security and Defense Industries Carve-out from former Defense & Civil Systems division (Aviation, Power Systems, Energy & Drive) Photonics at the heart of our OEM customers products Driving production efficiency with photonics Making roads and communities safer Tailored solutions in challenging and regulated markets Jenoptik Investor Relations Presentation 4

5 Transforming Jenoptik into a focused technology group More Focus More Innovation More International Photonics Innovation International Leverage core competencies Step-up R+D work Build a truly global enterprise Jenoptik Investor Relations Presentation 5

6 Attractive photonic applications at the core of Jenoptik 31bn 27bn 31 bn 36bn 22 bn 54bn Photonic components Σ bn 152 bn World market in Photonics: ~ 6 bn Jenoptik will focus on: Information processing (i.e. semiconductor equipment manufacturing and communication) Biophotonics Smart manufacturing 72bn Sensing, monitoring, measurement (public safety, traffic solutions) Total addressable market for Jenoptik: ~3bn; CAGR ~5-6% Solar PV & Alternative Energy Consumer & Entertainment Advanced Manufacturing BioPhotonics Lighting & Displays Defense, Security, Law Enforcement Sensing, Monitoring, Measurement Optical Information Processing We aim at photonic applications allowing for technical differentiation. Source: SPIE (216), Agileon Strategic Consultancy Jenoptik Investor Relations Presentation 6

7 Agenda 1 Overview and strategy 2 Financials 218 and outlook 3 Appendix Jenoptik Investor Relations Presentation 7

8 Major events in 218; strategic priorities implemented Corporate structure VINCORION Business in Asia Reorganization of the corporate structure, four new divisions established; structures within the divisions and the Corporate Center simplified Launch of the new VINCORION brand for the mechatronics business Realignment of the business in Asia new management, simpler structures and clear responsibilities Successful acquisition of Prodomax Automation Ltd., Canada and the OTTO Group, Germany Extensive investments in the expansion and modernization of our sites Revenue EBITDA 834.6m euros 127.5m euros +11.6% +19.3% Jenoptik Investor Relations Presentation 8

9 Tailwind from the markets and acquisitions led to substantial rise in revenue Revenue in million euros % Q1/17 Q2/17 Q3/17 Q4/ Q1/18 Q2/18 Q3/18 Q4/ New revenue record; Q4 strongest quarter Organic growth of 6.6%, revenue contribution of the acquired companies: 37. million euros Stronger demand in particular from the areas of semiconductor equipment as well as traffic safety solutions (scheduled deliveries of toll monitoring systems in H1/218) Jenoptik Investor Relations Presentation 9

10 Acquisitions and settlement of a major order drive growth in Germany and abroad Foreign revenue > 71 percent AMERICAS % EUROPE % GERMANY + 8.% AFRICA / MIDDLE EAST % ASIA / PACIFIC -9.4% Jenoptik Investor Relations Presentation 1

11 Automotive and semiconductor equipment with higher revenue share Revenue by markets (prior year figures in brackets) Semiconductor equipment Medical technology 18% (17%) Other 5% 5% (6%) (5%) 34% (3%) Automotive/ Mechanical engineering Automotive/Mechanical engineering: contribution of acquired companies and strong demand Semiconductor equipment industry with higher share of revenue Aviation/Traffic 19% (21%) 19% (21%) 18. percent of revenue attributable to top 3 customers (prior year 18.3%) Security/Defense Jenoptik Investor Relations Presentation 11

12 EBITDA and EBIT with new records in spite of PPA effects EBITDA in million euros % Q1/17 Q2/17 Q3/17 Q4/ Q1/18 Q2/18 Q3/18 Q4/ All three segments with higher EBITDA contribution EBITDA margin substantially improved to 15.3% (prior year 14.3%) PPA effects 7. million euros, acquisition costs 1.9 million euros EBIT in million euros % Q1/17 Q2/17 Q3/17 Q4/ Q1/18 Q2/18 Q3/18 Q4/ Significant rise in EBIT due to higher revenue and a lower increase in functional costs EBIT margin grew to 11.4% (prior year 1.4%) EBIT contribution of acquired companies came to.5 million euros (including PPA effects of 1.5 million euros) Jenoptik Investor Relations Presentation 12

13 Successful business development is also reflected in marked improvement of other earnings figures Revenue Gross margin 35.1% 35.3% Functional costs EBITDA EBIT Financial result Earnings before tax Earnings after tax Cost of sales showed slightly stronger rise than revenue due to changed product mix, gross margin was a bit lower than in prior year Rise in R+D, selling and administrative costs at 6.4% lower than revenue growth Financial result weaker (prior year: one-off income from the disposal of non-operating financial investments) Decline in cash-effective tax rate to 12.% (prior year 17.9%) attributable in particular to usable tax losses carried forward and US tax reform Earnings per share (euros) Jenoptik Investor Relations Presentation 13

14 Order figures also at record values, strong order intake in the final quarter Order intake in million euros Order backlog in million euros % % Dez Dez. 218 In Q4/218 new orders of million euros (Q4/217: 226.7m euros) Increase due to stronger demand in the Optics & Life Science and Mobility segments Book-to-bill ratio 1.5 (prior year 1.7) Good basis for coming months; 79% with shipment dates in 219 (prior year 79%) Acquired companies contributed 35.9 million euros Frame contracts at 62.5 million euros (31/12/17: 87.6m euros) Jenoptik Investor Relations Presentation 14

15 Free cash flow increased markedly in spite of higher capital expenditure In million euros Operating profit before adjusting working capital Changes in working capital and other items Cash flows from operating activities before income taxes Cash flows from operative investing activities Free cash flow (before interest and taxes) Working capital grew slightly to million euros (31/12/17: 214.8m euros), in particular due to higher operating receivables Working capital ratio improved to 26.% (31/12/17: 28.7%) Investments rose, as planned, to 42.5 million euros (prior year 37.9m euros) Free cash flow climbed to 18.3 million euros in spite of higher investments (prior year 72.2m euros) Net debt came to 27.2 million euros despite payments for acquisitions (prior year 69.m euros) Jenoptik Investor Relations Presentation 15

16 Number of employees grew to 4,43, increase abroad attributable to internationalization strategy GERMANY ,62 (2,878) AMERICAS (346) EUROPE +26 3,282 (3,76) ASIA / PACIFIC (258) Jenoptik Investor Relations Presentation 16

17 Optics & Life Science segment: high demand was driving growth and profitability Revenue in million euros EBITDA in million euros Order intake in million euros % % % +17,1% New revenue record Semiconductor equipment industry and positive development in the Healthcare & Industry area were again driving increase EBITDA margin improved to 24.1% due to product mix and good capacity utilization (prior year 22.6%) EBIT grew to 62.3 million euros (prior year 5.5m euros); EBIT margin came to 21.5% (prior year 19.5%) Book-to-bill: 1.21 (prior year 1.14) Order backlog rose by more than 5% to 165. million euros (31/12/17: 19.1m euros) Frame contracts of 11.8 million euros (31/12/17: 11.1m euros) Jenoptik Investor Relations Presentation 17

18 Mobility segment: acquisitions and delivery of toll monitoring systems contributed to strong business development Revenue in million euros EBITDA in million euros Order intake in million euros % % % Increase attributable to both areas Automotive and Traffic Solutions as well as acquisitions (37. million euros) Organic growth of 7.7% Strong rise in Germany (toll monitoring pillars), in the Americas (acquisition) and Middle East/Africa (project settlement) Acquisition costs of 1.9 million euros and PPA effects of 7. million euros included in EBITDA and 1,5 million euros in EBIT EBITDA margin 12.4% (prior year 1.3%) EBIT grew to 27.7 million euros (prior year 18.5m euros), EBIT margin at 8.4% (pr. year 6.9%) Book-to-bill:.97 (pr. y. 1.12) Order backlog: 182. million euros (31/12/17: 144.7m euros), includes order backlog of the purchased companies of 35.9 million euros Frame contracts fell to 19.2 million euros (31/12/17: 3.1m euros) Jenoptik Investor Relations Presentation 18

19 Defense & Civil Systems segment: earnings improved in spite of stable revenue Revenue in million euros EBITDA in million euros Order intake in million euros 3 3.3% + 2.2% 1.3% As expected, revenue was almost flat Growth in Europe; project-related decline in Germany Improvement is attributable to the product mix, lower currency losses and cost savings EBITDA margin increased to 11.2% (prior year 1.9%) EBIT 2.1 million euros (prior year 19.2m euros); EBIT margin improved to 9.2% (prior year 8.7%) Order intake nearly stable after good Q4 (segment had received several major orders in Q1/217) Book-to-bill:.93 (pr. y..94) Order backlog at million euros (31/12/17: 22.6m euros) Frame contracts of 31.4 million euros (31/12/17: 46.3m euros) Jenoptik Investor Relations Presentation 19

20 Key financials 218 of the new divisions in million euros Light & Optics Light & Production* Light & Safety VINCORION Group* Revenue EBITDA EBITDA margin 21.8% 11.7% 13.6% 12.1% 15.3% EBIT EBIT margin 19.4% 8.% 9.3% 9.9% 11.4% Order intake Order backlog *incl. PPA effects Jenoptik Investor Relations Presentation 2

21 Further growth expected for 219 We anticipate revenue growth in the mid-single-digit percentage range (before major portfolio changes). EBITDA margin is expected to come in at between 15.5 and 16. percent. More focus More innovation More international This presupposes that political and economic conditions do not worsen. Jenoptik Investor Relations Presentation 21

22 Agenda 1 Overview and strategy 2 Financials 218 and outlook 3 Appendix Jenoptik Investor Relations Presentation 22

23 A long tradition of innovation in optoelectronics Revenue since 217 Founded in Jena by Carl Zeiß State property German Reunification New Businesses Flexibility Consolidation Sustainable profitable growth Workshop for precision mechanics and optics The Zeiss plant in Jena, converted into state property Zeiss Jena has 69. employees Formation of Jenoptik GmbH IPO 1998 Acquisition of companies to open up new sales channels Starting new strategy More light in 218 Jenoptik Investor Relations Presentation 23

24 Corporate structure until December 31, 218 Segments Optics & Life Science Mobility Defense & Civil Systems Optical Systems Healthcare & Industry Automotive Traffic Solutions Defense & Civil Systems Divisions Jenoptik Investor Relations Presentation 24

25 Strong R+D commitment enables fundamentally new products; continuing expansion of sales structures abroad R+D output 66.6 in million euros in percent Selling expenses in million euros in percent Ratio of R+D output to revenue Ratio of selling expenses to revenue 218: R+D output: 8.3% of revenue R+D expenses: 5.7% of revenue 44 patents registrations (prior year 52) 218: selling expenses 1.4% of revenue (prior year 1.7%) Jenoptik is consistently pursuing its strategy of internationalization Jenoptik Investor Relations Presentation 25

26 Development of Jenoptik share price compared with Dax and TecDax (indexed) since early 218 to date in euros 45, 4, Prel. Results 217 / new strategy Results H1/218, increase in earnings guidance Sharp drop in share prices, esp. semi comp. Prel. Results , 3, 25, JEN + 2% TecDAX +6% DAX 8% 2, Acquisition of Prodomax, increase in revenue guidance Results 9M/218, increase in revenue guidance 15, Jan 2, 218 XETRA March 19, 219 ISIN / Ticker: DEA2NB61 / JEN Number of shares: 57,238,115 Market cap: ~1.9 billion euros Nominal capital: 148,819,99 euros Jenoptik Investor Relations Presentation 26

27 Shareholders and dividend information Shareholder structure Freefloat 89.% Thüringer Industriebeteiligungs GmbH & Co. KG 11.% 2, 1,6 1,2,8,4 EPS Dividend payment *, *Proposal to AGM Major institutional shareholders ( ) Fund Name % Shares Region Thüringer Industriebet ,296,193 Germany DWS 5.2 2,978,178 Germany Capital World Investors 5.4 2,885,141 US OppenheimerFunds ,88,844 US Norges Bank ,752,411 Norway Source: Nasdaq and voting rights notifications Dividend yield Jenoptik Investor Relations Presentation 27

28 Dates and contact March 21, 219 March 22, 219 April 5, 219 April 1, 219 April 11, 219 May 9, 219 Results of fiscal year 218, conference call Analysts conference and roadshow Frankfurt Bankhaus Lampe Conference, Baden-Baden Warburg Conference, Warsaw Roadshow Helsinki Results of the first quarter 219, conference call Contact: Thomas Fritsche Head Investor Relations JENOPTIK AG Phone: Our app Publications provides an optimized view of the report on mobile devices with ios and Android operating systems. The application is available for download in the App Store and at Google Play. Jenoptik Investor Relations Presentation 28

29 Disclaimer This presentation can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the development or the performance of the company to be materially different from the announced forward-looking statements. Such factors can be, among others, changes in currency exchange rates and interest rates, the introduction of competing products or the change of the business strategy. The company does not assume any obligation to update such forward-looking statements in the light of future developments. Jenoptik Investor Relations Presentation 29