investor presentation...2014/02/17 · micronas ltd. glenrothes, scotland test center, production...
TRANSCRIPT
Investor presentation –Year-end results 2013
Analyst and press conference – Hotel Savoy, Zurich – February 20, 2014
The following documentation contains
forward-looking statements that are
subject to certain risks and uncertainties.
Actual results may differ materially from
those anticipated in this presentation.
2
Overview
Markets and customers
Application fields Automotive
Application fields Industrial
Products
Financials
Summary
Backup
Agenda
3
Micronas at a glance
4
About 900 employees worldwide
Leading supplier of hall sensors for the automotive industry
Core business Automotive
Focus on sensors and sensor-based solutions
Full in-house production with own waferfab and backend operations including
testing and packaging
zero ppm quality to ensure customer satisfaction
Commitment to environmental protection
Known and recognized in the automotive
and industrial business as a reliable global
partner for intelligent,
sensor-based system solutions
Micronas Ltd.Glenrothes, Scotland
Test center, Production
Micronas New TechnologiesGmbH, Munich, Germany
Research & DevelopmentSales
Sales officesacross Europe
5
Group structure and locations
Micronas GmbHFreiburg, Germany
Research & DevelopmentMarketing & SalesProduction
Micronas Japan K.K.Tokyo, Japan, Sales office
Micronas Semiconductor Holding AG, Zurich, Switzerland
Headquarters
Sales officeShanghai, China
Sales officeDetroit, USA
Micronas in the year 2013
� Micronas performed well in a demanding market
environment
� Year-on-year hall sensor unit sales growth of
6 percent
� Sales, gross and EBIT margin heavily affected by
yen weakness – net profit reaches CHF 7 million
� Utilization of production facility in Freiburg rose
to 80 percent
� For the third year in a row, proposal for distribution
of CHF 0.05 per registered shares
6
Micronas in the year 2013
� Starting of successful volume production of
2D Hall family
� Second generation of current sensor launched in
2013 and already integrated into applications
� Unit sales of embedded controllers, only
introduced in 2012, reached the million mark
� Industrial year over year sales growth of
36 percent
� 8-inch wafer line successfully started volume
production
7
Agenda
8
Overview
Markets and customers
Application fields Automotive
Application fields Industrial
Products
Financials
Summary
Backup
Market and technology drivers
Comfort and
lifestyle
High levels of functionality, low
power and small form factor
enable new applications and
comfort features
Economy
Reduced overall system cost enabled by
highly integrated sensors and embedded
controllers, e.g. increasing magnet costs
can be compensated by higher sensitivity
9
Increased safety demand drive
growth for novel, intelligent
and redundant products and
system solutions
Increased demand for high energy
efficiency and CO2 reduction needs
optimized sensors and actuator
solutions, e.g. for engines, BLDC
motors and HVAC systems
Environmental
protectionSafety
100%
120%
140%
160%
180%
200%
220%
240%
260%
280%
300%
2013 2014 2015 2016 2017 2018
Vehicle production (MU)
Market development
10
Source: Strategy Analytics / IHS / WSTS / Micronas, January 2014
CAGR 2013 – 2018 = 5%
Ma
rke
t fi
gu
res
no
rma
lize
dto
20
13
00
20
40
60
80
100
120
2013 2014 2015 2016 2017 2018
Vehicle production (MU)
-2%
-4%
8%
23%
-0.2%-5%
0%
5%
10%
15%
20%
25%
-5
0
5
10
15
20
25
WesternEurope
thereofGermany
USA China Japan
Registration in Mil./units
y/y growth13/12
New passenger car registration 2013
11
Market development
Source: VDA – Verband der Automobilindustrie, January 2014
1212
Automotive manufacturers – OEMs
Customers of our customers
100%
120%
140%
160%
180%
200%
220%
240%
260%
280%
300%
2013 2014 2015 2016 2017 2018
Electronic systems Automotive (M$)
Vehicle production (MU)
Market development
13
Source: Strategy Analytics / IHS / WSTS / Micronas, January 2014
CAGR 2013 – 2018 = 5%
CAGR 2013 – 2018 = 7%
0
50.000
100.000
150.000
200.000
250.000
300.000
2013 2014 2015 2016 2017 2018
Electronic systems Automotive (M$)
Ma
rke
t fi
gu
res
no
rma
lize
dto
20
13
1414
Customer and distributor base
100%
120%
140%
160%
180%
200%
220%
240%
260%
280%
300%
2013 2014 2015 2016 2017 2018
BLDC motors Automotive (M$)
Hall sensors Automotive (M$)
Electronic systems Automotive (M$)
Vehicle production (MU)
Market development
15
Source: Strategy Analytics / IHS / WSTS / Micronas, January 2014
Ma
rke
t fi
gu
res
no
rma
lize
dto
20
13
CAGR 2013 – 2018 = 5%
CAGR 2013 – 2018 = 7%
CAGR 2013 – 2018 = 8%
CAGR 2013 – 2018 = 15%
Hall sensors and BLDC motors willcontinue to outgrow vehicle production
and electronic systems in cars
Agenda
16
Overview
Markets and customers
Application fields Automotive
Application fields Industrial
Products
Financials
Summary
Backup
Powertrain
Chassis and safety
� Micronas has a long history in Automotivewith a very large customer base
� Thanks to its full in-house manufacturing, Micronas maintains full control of production from wafer fab, assembly to final testing
� This provides highest flexibility to meet automotive quality and to offer unique customization capability
� Micronas offers the world’s largest Hall sensor portfolio covering all automotive applicationsin powertrain, chassis and safety as well as body and comfort
Application fields for Automotive
Automotive
17
Body and comfort
� Important electrification trend in the vehicle body compartment
� Requirements are driving the trends towards higher safety integration
� Increased demand for high energy efficiency and CO2 reduction
Automotive applications
18
Powertrain
Active pedal
Chassis and safety Body and comfort
Powertrain valves
Battery management
Gear position
Steering torque/angle
Steering motor position
Chassis height
Braking
Window/sunroof position
Wiper position
Grille shutter
Seat position
� Hall sensors are usedin acceleration pedaland electronic throttlecontrol (ETC)
Example powertrain
� Electronic throttle control replaces mechanical link between acceleration pedal and throttle
� The engine control unit (ECU) determines the required throttle position from data measured by accelerator pedal position sensor, engine speed sensor, vehicle speed sensor etc…
� Environmental protection
� Improves air/fuel ratio, reduces exhaust emission
� More comfort and lifestyle
� Allows cruise control, eases gear changes
� Safety
� Improves stability control, enables pre-crash system
� Economy
� Reduces fuel consumption
19
Electronic throttle control
Throttle
Acceleration pedal
Micronas is #1 supplier for magnetic sensors used in ETC
and acceleration pedal modules (IHS, 1st HY-2013)
Example – body and comfort
� The flaps of the front grill are driven by an actuator and set in the desired position tocontrol the intake of fresh air into the engine compartment as needed
� The system determines whether to cool the engine depending on changes in the temperature of the cooling water and engine oil
� Lowers drag coefficient by 3-10% depending on the vehicle design and the front-end shape
� Environment protection
� Reduces CO2 emission by up to 4g/km
� Further reduces emission by about 15% through shorter time required for engine warm-up
� Economy
� Reduces fuel consumption by 0.2 liters per 100km
� Grille shutter uses integrated high voltage controller and Hall sensor
Grille shutter
20
Now in volume productionat multiple OEMs
Agenda
21
Overview
Markets
Application fields Automotive
Application fields Industrial
Products
Financials
Summary
Backup
White goods and
home appliances
Building and home automation
� Intelligent sensor and actuator solutions for smart automation networks to enable increased comfort and lifestyle
� Highly reliable and robust sensors to meet the demands for long lifetime within harsh environments
� Wide range of cost-effective sensor solutions for eco-friendly home appliances with small form factor
Application fields for Industrial
Industrial
22
Heavy machines and factory automation
� Trend for higher comfort requires further electrific-ation and replacement of today’s mechanical systems
� Higher energy efficiency, reliability and comfort are driving the trend of optimized sensor and actuator solutions
� Higher safety and environmental require-ments are driving the demand for more sensors with high performance
Industrial applications
23
Building and home automation
Roller shutter/blinds
Heavy machines and factory automation
White goods andhome appliances
Door/window lock
Pressure measurement
Current measurement
Joystick
Throttle/valve
Cylinder position
Proximity switch
Door lock
Flow measurement
Motor commutation
Push button
Example – heavy machines and factoryautomation
� Hall-effect sensors are applied to detect angular or linear position of handle against its base
� Hall-effect sensors are replacing contact-based potentiometers
� Reliability
� Immunity to mechanical wear enables long-lasting operation with multi-million cycles
� Safety
� Implementation of two independent outputs allows the signals to be monitored and compared for fail safe operation
� Non-contact joysticks are used in reliable and safety critical applications like off-highway vehicles and man-machine interfaces
24
Joystick application
Agenda
25
Overview
Markets and customers
Application fields Automotive
Application fields Industrial
Products
Financials
Summary
Backup
Micronas product portfolio
26
Embedded controllersHall-effect sensors
Gas sensors
� Easy to implement contact-less switch
� Replacement of micro switches
Hall-effect sensors – products
Micronas offers the broadest portfolio of Hall sensors for automotive andindustrial
Switches
27
buckle switchroller shutter
� Precise angle detection with a single sensor
� Replacement of inductive or optical angle encoders
Angular
steeringangle
3D HAL uses licenses of Fraunhofer Institute for Integrated Circuits IIS.
� Highly accurate position detection
� Replacement of conventional potentiometers
Linear
throttleflap
linearposition
� Small form factor contact-less current transducer
� Replacement of shunt based solutions
Current
Power management
currentsensormodule
Hall-effect sensors – trends
Safety
New product development and
documentation are meeting the
requirements of ISO26262, the de-
facto standard for automotive
functional safety
Micronas has developed a concept
for its devices to become insensitive
against disturbing magnetic stray
fields caused by the increased car
electrification (HEV/EV)
28
Capacitors are integrated into
the sensor package in order to
fulfill stringent EMC/ESD
requirements and to reduce
overall system costs
Two silicon dies are integrated
into a single package to respond
efficiently to redundancy
requirements for most critical
applications (pedal, throttle,
steering)
Redundancy
Robustness
Integration
Embedded controllers
� High flexibility to directly drive BLDC and
BDC motors through on the spot
reconfiguration
� Greener innovation through weight reduction
and power-efficient motor commutation
� More comfort and connectivity through noise
reduction, climate control, driver relaxation
� Further improved power efficiency and better
dynamics when leveraging synergies with our
2D/switch Hall sensor families
Products and trends
Micronas highly integrated solutions are providing customers with highflexibility and efficiency to answer higher demand for electric motors
29
– Gas sensors
� Highly integrated ambient sensor platform with
four sensing channels, two independent for
gases, one each for temperature and relative
humidity
� By using more sensing parameters, fire detection
systems will offer greater protection from false
alarms
� Miniature sensor package enables almost
invisible end customer solutions
� Better comfort and reduced energy consumption
through intelligent air quality control systems
Gas sensors become digital: Micronas mySENS® gas sensing technologyovercomes the limitations of existing technologies
30
Products and trends
Agenda
31
Overview
Markets and customers
Application fields Automotive
Application fields Industrial
Products
Financials
Summary
Backup
-5
0
5
10
15
20
25
30
2012 2013
Industrial performance
Units
Sales in CHF
EBIT in CHF
0
50
100
150
200
250
300
350
2012 2013
Automotive performance
Units
Sales in CHF
EBIT in CHF
32
Micronas Group – segment information
Mil.Mil./CHF 31.12.2013 31.12.2012
Automotive
Net sales 143.6 157.0
Gross margin 45.8 65.0
in % of sales 31.9% 41.4%Operating profit (EBIT) 9.1 25.5
in % of sales 6.4% 16.3%
Mil./CHF 31.12.2013 31.12.2012
Industrial
Net sales 8.3 6.1
Gross margin 3.2 2.0
in % of sales 38.0% 32.6%Operating loss (EBIT) -1.1 -2.9
in % of sales -12.7% -47.8%
Automotive accounts for 94% and Industrial for 6% of total turnover
Mil.
7%
93%
Sales by product lines
Controllers Hall-effect sensors
Mil./CHF 31.12.2013 31.12.2012 Change in %
Hall-effect sensors 133.2 148.1 -10%
Controllers 10.4 8.9 17%
Total sales 143.6 157.0 -9%
33
Segment Automotive – product lines
55%11%
11%
7%16%
Sales in Europe
Germany France Hungary Czech Republic Others
Mil./CHF 31.12.2013 31.12.2012 Change in %
Europe 50.5 46.5 9%
Asia 89.7 107.7 -17%
America 11.5 14.2 -19%
Others 0.2 0.1 100%
Total sales 151.9 168.5 -10%
88%
9%3%
Sales in Asia
Japan China Others
59%
33%8%0%
Sales total
Asia Europe America Others
34
Micronas Group – regional information
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
Q1-13 Q2-13 Q3-13 Q4-13
Book-to-billMil./CHF 31.12.2013 31.12.2012
Orders on hand,
beginning of year 43.4 47.5
Net sales 151.9 168.5
Order intake 155.9 164.7
Translation adjustments 0.7 -0.3
Orders on hand,
end of year 48.1 43.4
Book-to-bill 1.03 0.98
35
Micronas Group – order book
Orders on hand by end of year of CHF 48 million – book-to-bill ratio of 1.03
ratio
Micronas Group – income statement
36
Mil./CHF in % of Mil./CHF in % of
net sales net sales
Net sales 151.9 168.5
Gross margin 49.0 32.2% 67.5 40.1%
Research and development expenses -27.8 18.3% -28.9 17.2%
Marketing and sales expenses -9.9 6.5% -10.3 6.1%
Administrative and general expenses -5.6 3.7% -6.2 3.7%
Other operating income/expenses 2.3 1.5% 2.2 1.3%
Operating profit (EBIT) 8.1 5.3% 24.2 14.4%
Financial income/expenses/FX net. -1.3 -11.1Pretax profit 6.8 4.5% 13.1 7.8%
Income taxes -0.2 6.2Profit for the period 6.6 4.4% 19.3 11.5%
EBITDA 19.4 12.8% 35.5 21.1%
Earnings per share in CHF 0.23 0.66
31.12.2013 31.12.2012
Mil./CHF 31.12.2013 31.12.2012restated
1
Total non-current assets 86.2 85.5
Cash, cash equivalents and short-term financial
investments 173.7 172.4
Other current assets 43.2 39.9
Total assets 303.1 297.8
Total shareholders' equity 129.8 125.6in % of total assets 42.8% 42.2%
Total long-term liabilities 150.2 148.0
Total current liabilities 23.1 24.2
Total liabilities 173.3 172.2
Total shareholders' equity and liabilities 303.1 297.81Restated due to the revised IAS 19 standard
Micronas Group – balance sheet
37
Healthy net cash and equity position
Micronas Group – trade working capital
38
Trade net working capital represents 19 percent of net sales
Mil./CHF 31.12.2013 31.12.2012
Inventories 26.9 26.2
Accounts receivable 12.7 11.2
Accounts payable 11.4 9.2
Trade net working capital 28.2 28.2
Micronas Group – cash flow statement
39
Healthy net cash position of CHF 170 million
Mil./CHF 31.12.2013 31.12.2012
Cash, cash equivalents and short-term financial
cash deposits at the beginning of the year 169.9 156.2
Cash flow from operating activities 10.6 23.6
Cash flow from investing activities -10.2 -7.6
Cash flow from financing activities -1.3 -1.50.7 0.7
Exchange effect on cash 1.4 -0.8
Change in cash, cash equivalents and short-term
financial cash deposits 0.5 13.7
Cash, cash equivalents and short-term financial
cash deposits at the end of the year 170.4 169.9
Agenda
40
Overview
Markets and customers
Application fields Automotive
Application fields Industrial
Products
Financials
Summary
Backup
Demand for electronics in the automotive and
industrial sectors continues to rise steadily, leading
to increased use of Micronas Hall sensors and
embedded controllers, and thus to further growth.
� Growth regions are still China and the USA
� Europe is staging a slight recovery
� No prospect of the yen strengthening against the euro
� With a yen-euro FX rate of 140, the Board of Directors and
Management thus expect for the first half-year 2014:
� sales of around CHF 78 million
� lower single-digit EBIT-margin percentage range
Outlook for first half-year 2014
41
Summary
42
� Micronas already supplied more than 2.5 billion hall
sensors and offers the world’s largest hall sensor
portfolio for the automotive and industrial market
� Micronas offers its customers new and innovative
solutions for ever more demanding applications within
the automotive and industrial markets
� Micronas handles all the different stages from
development to production under one roof which
enables us to provide strong customer advantages
� Thanks to a rigorous commitment to quality and
reliable delivery and an excellent product portfolio,
Micronas is in a leading worldwide position
Agenda
43
Overview
Markets and customers
Application fields Automotive
Application fields Industrial
Products
Financials
Summary
Backup
Shareholder structure
Shares by country Shares by shareholders category
30.6%
6.0%
0.9%14.9%
2.7%
7.5%
37.4%
Switzerland
Great Britain
Germany
Rest of Europe
USA
Rest of world
Shares notregistered
22.5%
2.0%
21.5%
0.2%
0.9%2.0%
13.5%
37.4%
Persons
Companies
Funds
Foundations
Pension funds
Insurance comp.
Banks
Shares notregistered
Total shares outstanding as at December 31, 2013: 29 727 930(share capital including options exercised)
44
Major shareholders
45
Number
of shares
RBC Dexia Investor Services Trust1 London, Great Britain 2 002 764 6.74
Nortrust Nominees1 London, Great Britain 1 772 038 5.96
Sparinvest Holdings SE2 Luxembourg 1 588 436 5.35
Black Creek Investment Management Inc.2 Toronto, Canada 1 495 070 5.04
FIL Limited2 Hamilton, Bermuda 1 479 740 4.98
Chase Nominees Ltd.1 London, Great Britain 950 329 3.20
Brandes Investment Partners, L.P.2 San Diego, USA 897 970 3.02
As at December 31, 2013, the Company is aware of the following shareholders holding 3 percent or
more of the capital and/or voting rights of the Company:
Shareholder Registered office Percentage
1RBC Dexia Investor Services Trust, Nortrust Nominees Ltd. and Chase Nominees Ltd. are acting in their capacity as nominees for other investors. The above figures (number of shares and percentages) conform to the figures as at December 31, 2013.
2The above figures (number of shares and percentages) conform to the figures contained in the respective notifications to the Company and the Disclosure Office of the SIX Swiss Exchange; they may not be accurate as at December 31, 2013.
� February 20, 2014 Closing date of share register
� March 21, 2014 Ordinary Shareholders’ Meeting10 a.m., Technopark, Zurich
� April 24, 2014 Quarterly key figures Q1-2014
� July 22, 2014 Half-year results 2014
� October 21, 2014 Quarterly key figures Q3-2014
IR calendar
46
IR contactSusy Krucker, Head of Investor Relations, [email protected] further information, please check: www.micronas.com / Investor