INFICON HOLDING AG Earnings Release - Analyst/Media Conference Q1 2024
April 25th, 2024
Agenda & Speakers
Oliver Wyrsch, President & CEO
- Key Messages & Figures Q1 2024
- Target Market Business Review
- Expectations 2024
Matthias Tröndle, Vice President & CFO
- Financials Q1 2024
- Guidance
- Corporate Calendar
2
Q1 2024 Results
Improved gross margin and profitability. As expected, Q1 slightly weaker. Except Semi & Vacuum Coating, all markets grow YoY. Book to bill nearly 1
SALES
- Sales nearly flat -2.5% YoY at 154.2 MUSD (organic -2.1% YoY)
- Growth in Europe and Americas, and all end markets except Semi (S&VC)
- Temporarily slower momentum in Q1 in Semi related business, and in Asia. Record growth of nearly 50% in S&E, growth in GV (+4%), RAC&Auto (+8%) while Semi decreased (-15%)
- Order intake slow at start then accelerating, with book-to-bill in Q1 close to 1
OPERATING RESULT
- Improved operating income of 31 MUSD or 20.3%, after 19.0% in Q1 2023, increase of 4% YoY
- Gross margin improved by +2.0%pts YoY, best level since Q2 2021. Lower broker costs and improved supply chain quality and availability. Systematic cost management while preparing for ramp-up
- Good cash generation, operating cash flow of 22.5 MUSD (+7 MUSD)
ORGANIZATION / OTHER
- Continued investments into R&D at 8% of sales and into production capacity with CAPEX 12 MUSD. Expected CAPEX around 30 MUSD for full year
Sales Q1 2024
(Q1 2023)
3
Worldwide Markets & Sales
Growth in EMEA and Americas year-on-year. Slow start in Asia
Worldwide Net Sales in Q1 2024 by Region | Quarterly Sales Trend by Region |
North | Europe | |||||
America | 27% | |||||
29% | Asia | Q1 2024 Sales and Growth by Region | ||||
43% | Asia: | ~ | 66 | MUSD | - 12% | |
Europe: | ~ | 41 | MUSD | + 3% | ||
North America: | ~ | 46 | MUSD | + 9% | ||
Total: | ~ | 154 | MUSD | - 3% | ||
(including ROW) | vs. Q1 2023) |
Rest of World
1%
4
Semiconductor & Vacuum Coating - Performance & Outlook
Solid Q1 based on market dynamics. Good growth opportunities starting H2 2024
PERFORMANCE
- 2024 sales decreased -15% vs. Q1 2023, mainly driven by Asia
- #1 position in process control, leak detection, smart manufacturing software and thin film monitoring
- #2 for pressure measurement. Closing up to #1
OUTLOOK
-
Market expectations for 2024: H1: Soft / H2: Growth
Starting soft we see upwards potential in H2. Mid- and long-term very strong growth drivers for Semi - Memory was the slowest of submarket in 2023 and now shows improvement. Most submarkets have moderately optimistic outlook for 2024 with mixed picture in H1 then positive in H2. After strong mature edge in '23, now some slight slowdown visible for 2024
- Ongoing investments in leading edge nodes and advanced chip design. Increasing sensor and process monitoring usage in general. Semi initiatives globally ongoing
- Strong R&D pipeline at INFICON with new products, applications and solutions
Sales to Semi & Vacuum Coating | Sales Q1 '24 by Region |
+11.0% CAGR (2018 - 2023), (in MUSD) | (in MUSD) |
5
Automotive & Refrigeration, Air Conditioning - Performance & Outlook
Strong position with strong growth in RAC & Automotive market with battery testing as largest opportunity, but also RAC with good growth
PERFORMANCE | Sales to Automotive & Refrigeration, Air Con. | Sales Q1 '24 by Region |
+10.1% CAGR (2018 - 2023) (in MUSD) | (in MUSD) | |
- Good growth of +8% vs Q1 2023 mainly from Americas
- #1 position in RAC and Battery market
OUTLOOK
-
Market Expectations 2024: Flat/Growth
Traditional auto slowing, but battery/EV continuously growing, but 2024 expected to be slower growth than 2023 - New mobility and battery storage growth opportunities driven by energy transition (Li-ion batteries, plus other types and fuel cells)
- Good growth with new distribution and product initiatives for hand-heldafter-sales service products
- Growth in the RAC market. Change of regulations and new refrigerants supports growth as well as upgrading to advanced, fully automated smart manufacturing solutions, incl. new intelligent software.
- Strong R&D pipeline at INFICON with new products, applications and solutions
6
General Vacuum - Performance & Outlook
The broad industrial market is addressed through a multi-brand strategy and long-term channel partners. Growth in EMEA and some in Asia
PERFORMANCE
- 2024 Q1 sales increase of +4% vs. 2023. Growth in EMEA. Slower growth in Asia vs Q4
- Most competitive "full liner" in vacuum instrumentation
- Remain #1 position
OUTLOOK
- Overall market expectations 2023: Flat
- After strong market growth in 2023, outlook for Asia and Americas lower. Slower market expected in China vacuum market after strong growth in 2023
- Expand market reach into industrial and analytical OEM markets
- Expand distribution networks (US and Asia)
- Multi-brandstrategy
Sales to General Vacuum | Sales Q1 '24 by Region |
+11.2% CAGR (2018 - 2023) (in MUSD) | (in MUSD) |
7
Security & Energy - Performance & Outlook
Strong growth in Q1 and new quarterly sales record. Security and energy have both growth potentials but often depend on specific government programs and policies with their own dynamic. Good diversification factor versus the other end markets
PERFORMANCE
- 2024 Q1 sales increase of +49% vs. 2023, new quarterly record, 25% over Q4 with strong driver from Americas. Continued strong order pipeline
- Typically, significant fluctuations over time due to large programs
- Remain #1 position
- Supply chain at times still instable and limiting sales
OUTLOOK
- Market expectations 2024: Growth
- New HAPSITE generation with new features and expanded capabilities addressing new additional applications
-
US DoD programs awarded. Strong opportunity pipeline across
NATO - Cyclical: Still highly dependent on government spending
- Some Chinese competition for environmental applications
Sales to End Market Security & Energy | Sales Q1 '24 by Region |
+3.2% CAGR (2018 - 2023) (in MUSD) | (in MUSD) |
8
Expectations 2024
Expect soft H1/24 and growth in H2/24. With a solid order situation and the growth in selected markets, we are mostly optimistic for 2024, despite the global uncertainties and risks
- Even with weakness and risks in the markets we are mostly optimistic given the improved supply chain, the solid order situation, and the expected Semi upturn in H2
- We see positive momentum in certain markets: most Semi submarkets and selected other markets such as Battery and Security
Guidance for | Sales 650 - 700 MUSD (unchanged) |
2024 | Operating Income approx. 20% |
9
Recently at INFICON
Great moments that drive us forward…
Annual General Meeting | INFICON Ski Day | Opening - Guangzhou | Dual Study Program Cooperation |
Application Center | with University of Graubünden |
International Automotive | Innovation Day & Total | INFICON Women at | Social Days in Cologne |
and Battery Workshop | Eclipse in Syracuse | STEM |
Connect with us! www.inficon.com/news
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
INFICON Holding AG published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:58:18 UTC.
