FOR MEASUREMENT, ANALYSIS AND CONTROL, ONE …swissequitiesconference.com/pdf/Inficon.pdf · FOR...

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FOR MEASUREMENT, ANALYSIS AND CONTROL, ONE NAME ALWAYS YIELDS MORE! January, 2018 Bad Ragaz, Switzerland

Transcript of FOR MEASUREMENT, ANALYSIS AND CONTROL, ONE …swissequitiesconference.com/pdf/Inficon.pdf · FOR...

FOR MEASUREMENT, ANALYSIS AND CONTROL,ONE NAME ALWAYS YIELDS MORE!

January, 2018Bad Ragaz, Switzerland

2Janaury 2018

INFICON at a Glance

INFICON provides world-class instruments for gas analysis, measurement and control

Our core technologies are the measurement of vacuum or theuse of vacuum to analyzechemicals - primarily gases

Focus on four key markets

~5% annual compound growth rate from 2011 until 2017

Net Sales 2017 by Market

MUSD ~101(MUSD 86)

MUSD ~373(MUSD 310)

3January 2018

The INFICON World

Net Sales by Region 2017

~1.000 Employees WW

Europe, 26%

Asia, 46%

North America 26%

Rest of World, 2%

4January 2018

INFICON Investment Case

A pure play in vacuum sensor technology serving attractive markets

Dominant positions - #1 or #2 in all addressed markets

Global presence with sales and service in US, Europe, and Asia

Strategic focus: organic growth, profitability and technology leadership

Target highly specialized technology markets with attractive growth prospects.

Solid balance sheet – no long term debt

Substantial amounts of free cash flow generated every year

Healthy gross profit margins as a result of an excellent market position and effective design for manufacturabilty

Attractive shareholder dividend program

5January 2018

Security & Energy

Application Chemical Identification and Monitoring

Systems for VOC’s and SVOC’s in gases, liquids and soil

Protect people and staff for military, civil and environmental purposes

Trends & Drivers Increasing awareness of security threats

(intentional and/or unintentional) Increasing civil use (security &

environment) Need for immediate on-site results Future energy needs a new application

opportunity

6January 2018

Security & Energy

HAPSITE ER

Fusion Micro GC

CMS 5000

Products HAPSITE Chemical Identification System and

various Accessories CMS Water Monitoring System Micro GC Gas Analyzer IRwin® Mobile Methane Leak Detector Handheld VOC Detectors Consumables, Training, Service

Customers Government agencies

Military, Security, Environment Emergency Teams Police Departments Energy production & distribution

Competition Agilent (US) Perkin Elmer (Torion) (US) FLIR (US) Bruker (US) Sewerin (DE)

Photovac 2020Pro

IRwin® Mobile Methane Leak Detector

7January 2018

Performance Weak start in 2017, but good year end

business Sales increase of 12% in Q4 2017 vs.

Q4 2016 and +106% vs Q3 2017 Strong Q4 performance (US and Asia

projects)

Outlook Market Expectations 2018: challenging Uncertain global political situation Highly dependent on government

spending New competitors Growth opportunities in the energy

exploration and distribution market

Security & Energy

28.627.2

35.9

22.1

33.1

2012 2013 2014 2015 2016 2017

Sales to End MarketSecurity & Energy-2.3% CAGR (2012- 2017)

(in MUSD)

8January 2018

Refrigeration, Air Conditioning & Automotive

Application Finding leaks:

Manufacturing: parts and components Assembly lines: final quality tests End-User: after sales service and repair

Trends & Drivers On-going world wide high demand for air

conditioning and refrigerator Increased requirements to:

reduce environmental pollution increase energy efficiency

New environmentally friendly refrigerants Increased numbers of Automotive parts

that need to be leak tight New E-Car opportunities :

New and existing battery technologies Fuel cell technology (Hydrogen)

9January 2018

Refrigeration, Air Conditioning & Automotive

TEK-Mate®

Refrigerant Leak Detector

Protec® P3000 Helium Leak Detector

T-Guard®

HLD 6000 Leak Detector

Sentrac ® Hydrogen Leak Detector

Modular Leak DetectorLDS 3000

Products Multi Gas, Helium & H2 Leak Detectors Modular Leak Detectors Refrigerant Leak Detectors Handheld Devices Service contracts & Accessories

Customers Carrier, Daikin, Samsung, Haier, Cree, Trane,

Whirlpool, Midea etc. (RAC) Daimler, GM, Ford, Fiat, Peugeot, VW, BMW,

Kuka, Laco, Valeo,Bosch, etc (Automotive) A’Gramkow, Home Depot, etc. (Distributor)

Competition Ulvac (J) Pfeiffer Vacuum (D) Agilent (US) Bacharach (US), Fuso (J) Ateq (F)

10January 2018

Performance FY2017 new annual record Q4 2017 sales increase 15% vs. Q4 2016,

sequentially increase of 2% Q4 second best result so far Solid # 1 position in RAC and increasing

market share in Automotive

Outlook Market Expectations 2018: stable/growth Expand automotive market share with

advanced solution and application ideas New distribution & product initiatives for

handheld after-sales-service products Keep high market share in saturated RAC

manufacturers market with excellent world-wide service and support capabilities E-car growth opportunities (Batteries)

Refrigeration, Air Conditioning & Automotive

47.8 47.954.3

57.6

68.1

2012 2013 2014 2015 2016 2017

Sales to End MarketRefrigeration, Air Conditioning & Automotive

+9.8% CAGR (2012 - 2017)

(in MUSD)

11January 2018

Semi & Vacuum CoatingSolar, Display, Optics & Semiconductor

Application Control of vacuum based processes:

Thin film coating (PVD & CVD) Ion implantation, etch & cleaning Device (e.g. Wafer) handling EUV Lithography

Maintenance (leak detection)

Trends & Drivers Emerging markets with growing demand

for electronic consumer products Increased complexity and miniaturization

(Moore’s law) Drive towards mobility & energy

efficiency Smart sensors, Big data, IoT, AI & AR

projects as new drivers “Run” for the latest technology

12January 2018

FABGUARD®Fault Detection Software

UL 1000 FABLeak Detector High Temperature

CDG

Sion® RF-Sensor

Semi & Vacuum CoatingSolar, Display, Optics & Semiconductor

Products Gas analysis and process control Software Helium leak detectors Thin film monitoring instruments Pressure measurement Service and application support Consumables & Components

Customers AMAT , TEL, LAM, Canon-Tokki, ASML , Sunic

(Equipment Manufacturers) Samsung, Intel, TSMC, Global Foundries

BOE, Innotron (End-user) Optorun, Essilor, Anelva, Zeiss, Bühler (Optics) Chinese Solar equipment manufacturer

Competition MKS (US) Pfeiffer Vacuum (D) ULVAC (J)

13January 2018

Performance Sales Q4 2017 increase of 13% vs. Q4 2016 Sequentially increase of 10% FY2017 new annual record,

mainly due to large investments in OLED flat panel and Semi production capacity

#1 position in process control, leak-detection and thin film monitoring, #2 for pressure measurement

Outlook Market Expectations 2018: slow growth

Stable equipment CAPEX (new: China)< 10nm nodes3D chip designEUV Lithography investments

OLED to replace LCD display technology for mobile devices & stable Optics market

Photovoltaic solar recovery “Design in wins” with new products

Semi & Vacuum CoatingSolar, Display, Optics & Semiconductor

96.1 102.1 100.6 97.2

120.6

2012 2013 2014 2015 2016 2017

Sales to End MarketSemi & Vacuum Coating

+11.7% CAGR (2012 - 2017)(in MUSD)

14January 2018

General VacuumApplication Qualitative and quantitative

measurement of vacuum based processes in R&D and manufacturing: Life Science, Analytics, Sterilization Particle & Energy research centers University and Industry laboratories Industrial & Chemical processes NEW: Food Packaging Quality Control

Trends & Drivers Vacuum as affordable technology for cleanest

process environment

Increased numbers of vacuum based processes in R&D and manufacturing

One stop shopping, therefore our instruments are also sold as private labeled accessories to large vacuum pump manufacturers and distributors

Increased awareness of quality & cost issues in the MAP food packaging market

15January 2018

Products Vacuum Instruments

• Gas Analysis• Pressure Measurement• Leak Detectors• Components and Accessories

Customers Pfeiffer Vacuum (D) Oerlikon Leybold (D) Fanuc (J), IPI (D), AS (US) Agilent (US), Ulvac (J), Ebara (J)

Competition MKS (US) Ulvac (J) Agilent (US) Pfeiffer Vacuum (Adixen, F) Edwards (UK)

Transpector MPH Mass Spectrometer

General Vacuum

Contura S400 Leak Detector for Food Packaging

Modul 1000Helium Leak Detector

Full Line of Vacuum Gauges

16January 2018

Performance Q4 2017 sales increase 33% vs. Q4 2016,

mainly due to higher sales to European and Asian customers

Sequential increase of 12% due to improved worldwide economy

Most competitive “full liner” in vacuum instrumentation

Remain # 1 position

Outlook Market Expectations 2018: slow growth

Strong dependency on EU economy Expand market reach into industrial and

analytical OEM markets Expand distribution networks (US & Asia) First sales into Food-packaging applications

General Vacuum

124.7115.8 114.7

101.887.9

2012 2013 2014 2015 2016 2017

Sales to End MarketGeneral Vacuum

-3.4% CAGR (2012 - 2017)

(in MUSD)

• Key Financial Figures • Shareholder Structure• Board of Directors & Management

18January 2018

Key Financials (FY2017 preliminary, unaudited)

Net Sales (USD M) Operating Income (USD M and in % of Sales)

19January 2018

Balance Sheet Information as of Sept. 30, 2017

Very solid balance sheet structure

No long-term debt

Net Cash position of USD 66 Mio.

Current assets represent 73% of total assets

Shareholders’ equity ratio 71% as of September 30, 2017

20January 2018

Shareholder Structure

As of Dec 31, 2017 in million shares: Outstanding, net: 2.375 Remaining Conditional: 0.080

Nominal value of CHF 5 per registered share

Listed on SIX Swiss Exchange (IFCN)

Dividend per Share (CHF) and Share Price (Year-end)

One share – one vote Registered shareholders: ~3’200

Major shareholders > 3%• KWE Beteiligungen AG ~ 19% • 7-Industries Holding ~ 10% • UBS ~ 5%• Chase Nominees ~ 5% • Nortrust Nominees Ltd. ~ 4%

~42 % of shares held by 5 investors with > 3 % each.

10 

14 16 

14 15 

13 

16 CHF 179.50

CHF 154.00

CHF 219.10

CHF 343.75

CHF 308.25CHF 320.25

CHF 367.00

2010 2011 2012 2013 2014 2015 2016

21January 2018

Board of Directors and Executive Management

Executive Management• Lukas Winkler

President & Chief Executive Officer

• Matthias Tröndle Vice President & Chief Financial Officer

Board of Directors – 5 members• Dr. Beat E. Lüthi Chairman• Dr. Richard Fischer Vice Chairman• Vanessa Frey Member• Beat Siegrist Member• Dr. Thomas Staehelin Member

Audit Committee• Dr. Thomas Staehelin (Chair)• Vanessa Frey• Beat Siegrist

Compensation & Human Resources Committee• Beat Siegrist (Chair)• Dr. Richard Fischer• Dr. Thomas Staehelin

22January 2018

SUMMARY – INFICON VALUE

LeadershipClear leadership position in 4 addressed markets

InnovationInnovate and design to lower costInnovate to improve customer yield

GrowthAttractive marketsGaining market share

Earnings Leverage Customer penetration (Key Account

Management) and efficiency programs drive operational leverage

Cost structure allows quick adjustment to downturn situations

Balance Sheet Strength 100% equity financing reduces risk

Dividend programs return excess cash to shareholders