SENSIRION HOLDING AG FULL-YEAR 2023 RESULTS
Sensirion Holding
Marc von Waldkirch, CEO Matthias Gantner, CFO 12 March 2024
Please note that this event will be recorded.
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AGENDA
Marc von Waldkirch | Matthias Gantner | Marc von Waldkirch | Q&A | ||
CEO | CFO | CEO | |||
Full-year 2023 highlights | Full-year 2023 | Strategic focus | |||
financial review | Trends | ||||
Business review 01 | |||||
02 | Outlook 2024 03 | 04 |
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Full-year 2023 overview
Business
- Challenging market environment leads to a topline setback after three booming years 2020-2022
- Continued investments in R&D and Sales to work on the strong innovation pipeline and to enable significant product launches in new applications in 2024 and 2025.
- This had a negative impact on profitability in the short term, but strengthens our growth opportunities for the coming years.
- Focused strategy implementation makes Sensirion ready for the next growth cycle
- Sensirion is strategically well positioned to benefit from secular megatrends
- the innovation mindset and agility allows us to seize attractive opportunities in the market
Financials
Revenue CHF, reported | 233.2m, -27.5% (-15.5% organic, -8.8%one-off,-3.2% FX) | |
Gross margin | 52.2% | |
EBITDA margin | 4.3% | |
Operating cash flow | CHF -10.9m, free cash flow CHF -46.5m |
Business Outlook
- In a market environment that remains challenging, we expect areturn to growth in 2024 thanks to new projects starting up.
- In terms of profitability, 2024 will be a transitional year.
- The medium-term outlook remains positive due to the structural megatrends underlying the sensor market.
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2023 setback after booming years 2020-2022
Revenue core | Mobile business | |
340 | Medical One-Off special Items | Gross margin | 70% | ||||||||||||
320 | 62% | 28 | |||||||||||||
300 | |||||||||||||||
56% | 60% | ||||||||||||||
280 | 54% | 58% | |||||||||||||
57% | 22 | 52% | |||||||||||||
260 | 54% | ||||||||||||||
240 | 53% | 53% | 50% | ||||||||||||
220 | 70 | ||||||||||||||
(CHFm) | 200 | 40% | |||||||||||||
180 | |||||||||||||||
160 | |||||||||||||||
Revenue | 293 | ||||||||||||||
140 | 30% | ||||||||||||||
266 | |||||||||||||||
120 | 53 | 17 | |||||||||||||
3 | 233 | ||||||||||||||
100 | 3 | 175 | 171 | 184 | 20% | ||||||||||
80 | |||||||||||||||
148 | |||||||||||||||
60 | 131 | ||||||||||||||
115 | 114 | ||||||||||||||
100 | 10% | ||||||||||||||
40 | 84 | ||||||||||||||
63 | |||||||||||||||
20 | 64 | ||||||||||||||
24 | 29 | 39 | |||||||||||||
0 | 0% | ||||||||||||||
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 |
Confidential
Business Review
- Significant topline setback in 2023 after three booming and very successful years of growth.
- In the core business, the setback was mainly driven by:
- Termination of the medical one-off (CHF -28 m), as expected
- pandemic driven over-consumption of air quality devices in the past 2 years. This effect was underestimated by us and our customers
- additional de-stocking across the entire supply chain
- These two effects (over-consumption and de-stocking) sum up to approx. CHF -50m. The split between these two effects is hard to estimate.
- FX-changes(CHF -10m)
• We have not lost any customers to competitors
- Reduced gross margin after leveraged gross margin values in the booming years 2020-2022
- Reduced gross margin reflects the current under-load in component manufacturing
- In the booming years of 2020-2022 the gross margins were leveraged due to an over-load in component manufacturing
5
Pro-active reaction on the challenging environment
Actively shaping our future growth by investing into R&D- and Sales
- The growth years 2020-2022 were enabled
- By innovative environmental and flow sensor products, outperforming existing market solutions
- By being ready to agilely react on convincing market opportunities, even at short notice
- By a high level of diversification and supported by a resilient business model
- Sensirion's strategy is fully on track. That is why we are intentionally continuing on this strategic path
- By continued investment in RD & - and Sales capacities to enable significant product launches in new applications in 2024 and 2025 and to work on our well-filled innovation pipeline
- To lay the foundation to return to growth in 2024 and the years to come.
- To continue to benefit from secular megatrends such as energy efficiency, climate protection and health
- This impacted our profitability in the short term, but supports our growth prospects for the coming years.
Optimizing our productivity and efficiency in Operations, R&D and Administration
- We have already started in H1/23 to actively adjust the capacity in Operations by reducing number of temporary staff.
- Additional measures to increase productivity in the factories as well as in administration have been initiated
- Cost-savingprograms involving the entire value chain has been initiated
- Focused review of R&D projects to improve the innovation effectiveness
Confidential
6
Automotive market
growing business despite challenging market conditions
Main results
FY 2023 revenue increased by 11% YoY to CHF 72.5m H2 2023 revenue increased by 17% HoH to CHF 39.1m
Above average revenue development in the automotive sector which was in contrast to the economic downturn in other markets
Growth was driven through Sensirions the Tier-1 module business with European OEMs and supported by Tier-2 business
Revenue development
(CHFm)
65.172.5
33.339.1
FY 2022 | FY 2023 | H1 2023 | H2 2023 |
Auto-defogging
Dew point | Climate |
control |
Air intake
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Medical Markets
Normalized after several years of one-offs, but still resilient
Main results
FY 2023 revenue, reported decreased YoY by -41% to CHF 44.9m
Adjusted for last year's one-time effect (CHF 28.3m) through the CPAP recall, the core business showed a Like4Like decline of just -6%.
After a very strong first half of the year, the business suffered from significant inventory optimizations by our major customers
Revenue development
(CHFm) | 76.1 | ||||
1. One-Off | 28.3 | ||||
Special | |||||
Business | |||||
47.8 | 44.9 | 31.7 | |||
13.1 | |||||
FY 2022 | FY 2023 | H1 2023 | H2 2023 |
Inhaler | |
Ventilator | Infusion |
CPAP
Anesthesia
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Industrial Markets
strongly impacted by appliance downturn
Main results
FY 2023 revenue decrease by -34% YoY to CHF 101.0m H2 2023 revenue increased by +8% HoH to CHF 52.4m
Reduced demand mainly from the appliance sector that benefitted the past 2 years over-proportionally from growing awareness for clean indoor air. (Partially Covid driven)
Additionally, slow-down amplified by continued high inventories that are slowly declining
No customers or projects have been lost. Design-in projects at customers for new businesses are on track and we continue to invest to capture upside potential
Revenue development
(CHFm)
153.8
101
48.652.4
FY 2022 | FY 2023 | H1 2023 | H2 2023 |
HVAC | Process control |
Home appliances |
Smart gas metering
Lab equipment
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Consumer market
strongly impacted by pandemic -driven "air quality over-consumption"
Main results
FY 2023 revenue decreased by - 44% YoY to CHF 14.9m H2 2023 revenue decreased by -37% HoH to CHF 6.7m
Reduced demand which benefitted the past 2 years over- proportionally from growing awareness for clean indoor air. (covid-driven)
Additionally, slow-down amplified by continued high inventories that are slowly declining
No customers or projects have been lost. Design-in projects at customers for new businesses are on track and we continue to invest to capture upside potential
Revenue development
(CHFm)
26.7
14.9
8.16.7
FY 2022 | FY 2023 | H1 2023 | H2 2023 |
Baby monitors
IP cameras | Smart thermostats |
Air quality monitors |
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Sensirion Holding AG published this content on 12 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2024 05:19:08 UTC.
