NEWS RELEASE

Pfeiffer Vacuum reports record sales and increased operating profit for fiscal year 2021 - strong demand entering 2022

Asslar, Germany, March 29, 2022. Pfeiffer Vacuum Technology AG, a leading global manufacturer of vacuum solutions, today reported the audited financial results for the fiscal year 2021. The Company reported record sales of EUR 771.4 million, an operating result (EBIT) of EUR 93.1 million as well as an EBIT margin of 12.1%.

Pfeiffer Vacuum sales for the year 2021 increased by 24.7% (2020: EUR 618.7 million), driven by a strong demand in all market segments, product groups and geographies. Sales in the Semiconductor and Emerging Technologies segment increased by 38.1% to EUR 393.2 million (2020: EUR 284.6 million). The dynamic growth was driven by the strong demand for microprocessors and the resulting need for vacuum technology. For the Analytics, Industry, and R&D market segment, sales increased by 13.2% to EUR 378.2 million (2020: EUR 334.1 million), related to strong demand recovery.

The operating result (EBIT) increased by 105.5% to EUR 93.1 million (previous year: EUR 45.3 million) and the EBIT margin reached 12.1% (previous year: 7.3%). The year-over-year increase in EBIT in 2021 was primarily a result of strong sales and continued cost management, which offset effects from the tight supply chains, increases in personnel costs as well as one-off impairment losses. The non-cash impairment loss of EUR 16.4 million resulted from goodwill of an acquisition in 2017. Excluding this impairment loss, the EBIT margin would have amounted to 14.2%

For the full year 2021, the order intake was EUR 964.3 million (2020: EUR 631.3 million) and the book-to-bill ratio, the ratio of order intake to sales, was 1.25 (2020: 1.02). At the end of the reporting period 2021, Pfeiffer Vacuum had a record order backlog of EUR 316.2 million, representing an increase of 156.4% compared to the previous year (2020: EUR 123.3 million).

Significant increase in dividend payout
The Management and Supervisory Boards will propose to the Annual General Meeting on May 19, 2022, to pay out a dividend of EUR 4.08 per share (previous year: EUR 1.60). The proposed dividend increase compared to the previous year was made against the background of Pfeiffer Vacuum's strong business and liquidity development in 2021. The payout ratio would represent 64.9% of the Group net income (previous year: 50.0%) and a dividend yield of 1.9% based on the 2021 year-end share price.

"The outstanding results in 2021 reflect the strong commitment of our employees to serve our customers and the ability of our organization to respond quickly to rapid demand increases," says Dr. Britta Giesen, CEO of Pfeiffer Vacuum Technology AG. "This also underlines the excellent market position of Pfeiffer Vacuum. Going forward, we will build the production capacity and the capabilities of the organization to become an even more important partner to our customers in the high-vacuum market."

Overview of key figures:

  12M/2021 12M/2020
  Change         Sales € 771.4 million € 618.7 million 24.7% EBIT € 93.1 million € 45.3 million 105.5% Net income € 62.0 million € 31.6 million 96.2% Earnings per share € 6.28 € 3.20 96.3% Dividend per share € 4.08* € 1.60 155.0% Order intake € 964.3 million € 631.3 million 52.7% Order backlog € 316.2 million € 123.3 million 156.4%  

*Subject to approval by the Annual General Meeting

The gross profit in the reporting period was EUR 280.4 million, up 29.2% from EUR 217.0 million in the previous year due to the significant sales increases. The gross margin improved by 1.3 percentage points to 36.4% of sales (previous year: 35.1%). The increase in gross profit from the prior year was due to increased sales, partially offset by inefficiencies due to rapid production ramp-up.

Net income increased significantly by 96.2% to EUR 62.0 million (previous year: EUR 31.6 million), representing earnings per share of EUR 6.28 (previous year: EUR 3.20).

In sales by region, measuring sales according to the location of the customers in their corresponding region, Pfeiffer Vacuum achieved a year-over-year increase in sales by 39.4% to EUR 322.5 million in Asia (previous year: EUR 231.3 million). This was particularly driven by the strong demand from our semiconductor customers. Sales in Europe grew by 11.5% to EUR 253.4 million (previous year: EUR 227.3 million). Americas sales increased by 22.1% to EUR 195.4 million (previous year: EUR 160.0 million) and were also impacted by the weaker US Dollar in 2021 compared to 2020.

Solid balance sheet and improved cash position
As of December 31, 2021, Pfeiffer Vacuum maintained its solid financial position. Total assets at the end of the year 2021 were EUR 707.9 million, up 7.0% from the end of 2020 (December 31, 2020: EUR 661.8 million). Cash and cash equivalents were EUR 99.4 million, down 19.1% from the previous year (December 31, 2020: EUR 122.9 million). During 2021, the Company made a EUR 55.0 million debt repayment and continues to be net debt- free. The equity ratio was at 64.9%, up 5.7 percentage points from the year-end 2020 (December 31, 2020: 59.2%).

Positive outlook for the 2022 fiscal year

Pfeiffer Vacuum expects sales for the full year 2022 to grow by more than 5%. The EBIT margin for the full year 2022 is expected to be above 2021 levels, primarily since the one-time recorded impairment charge in 2021 is not expected in 2022. Therefore, the EBIT margin is projected to be around 14%. Investments are planned to increase production capacity and productivity. This aims at positioning the Company for medium- and long-term sustainable growth.

The primary risks to this outlook are the continued strains in the supply chain. In addition, the potential impact of the military conflict in the Ukraine on the global economy and Pfeiffer Vacuum's business cannot be evaluated at this time.

Strategy update
The Company underwent an in-depth analysis and planning process to update the business strategy and position Pfeiffer Vacuum for mid- and long-term sustainable growth. This analysis showed that high vacuum technology is getting increasingly important to enable the ongoing industry revolution, driven by digitalization, energy transition, nanotechnology revolution and other trends. In this growing vacuum market, the overall goal for the Company is set to be the most sustainable and fastest growing market player in the industry to drive technology for a sustainable future and contribute to a better world for coming generations. The primary success factor to achieve this goal will be the even stronger focus on the customers in all business aspects, including investments, research and development as well as capacity expansions. The financial goals medium-to long-term goals include an increase of market share, to drive the sustainability of the business and to achieve sales of EUR 1 billion. While the Management Board expects to further improve the EBIT margin during this timeframe, the focus will be on investing in growth to achieve the full margin potential of Pfeiffer Vacuum Technology AG.

Contact
Pfeiffer Vacuum Technology AG

Investor Relations
Heide Erickson
T +49 6441 802 1360
Heide.Erickson@pfeiffer-vacuum.de

About Pfeiffer Vacuum
Pfeiffer Vacuum (ticker symbol PFV, ISIN DE0006916604) is a leading global manufacturer of vacuum solutions. Among a full range of hybrid and magnetically levitated turbopumps, the portfolio comprises backing pumps, leak detectors, measurement and analysis devices, components and vacuum chambers and systems. Pfeiffer Vacuum has stood for innovative solutions and high-tech products in analytics, industry, research & development, coating and semiconductor markets since its invention of the turbopump. Founded in 1890, Pfeiffer Vacuum is active worldwide. The Company employs over 3,400 employees, has over 20 sales and service companies, and operates 10 manufacturing sites worldwide.

For more information, please go to: group.pfeiffer-vacuum.com
 

Consolidated Statements of Income

PFEIFFER VACUUM TECHNOLOGY AG     (in K€)   2021 2020             Net sales   771,373 618,665   Cost of sales   -490,965 -401,671   Gross profit   280,408 216,994             Selling and marketing expenses   -79,371 -70,795   General and administrative expenses   -61,448 -57,595   Research and development expenses   -34,230 -35,135   Other operating income   11,395 9,349   Other operating expenses   -23,661 -17,522   Operating profit   93,093 45,296             Financial expenses   -843 -902   Financial income   251 147   Earnings before taxes   92,501 44,541             Income taxes   -30,514 -12,950             Net income   61,987 31,591             Earnings per share (in €):         Basic   6.28 3.20   Diluted   6.28 3.20               Consolidated Balance Sheets

PFEIFFER VACUUM TECHNOLOGY AG   (in K€)  
Dec. 31, 2021 Dec. 31, 2020                 ASSETS           Intangible assets   91,524 100,736     Property, plant and equipment   175,952 158,191     Investment properties   352 376     Other financial assets   2,502 2,198     Other assets   791 829     Deferred tax assets   28,650 31,306     Total non-current assets   299,771 293,636                 Inventories   162,178 133,254     Trade accounts receivable   119,587 83,601     Contract assets   1,392 1,501     Income tax receivables   4,796 10,848     Prepaid expenses   4,689 4,260     Other financial assets   168 1,597     Other accounts receivable   15,924 10,265     Cash and cash equivalents   99,371 122,883     Total current assets   408,105 368,209                 Total assets   707,876 661,845                 SHAREHOLDERS' EQUITY AND LIABILITIES           Share capital   25,261 25,261     Additional paid-in capital   96,245 96,245     Retained earnings   370,007 323,808     Other equity components   -32,137 -53,580     Equity of Pfeiffer Vacuum Technology AG shareholders   459,376 391,734                 Financial liabilities   13,876 69,614     Provisions for pensions   60,502 70,348     Deferred tax liabilities   4,437 4,477     Contract liabilities   1,321 804     Total non-current liabilities   80,136 145,243                 Trade accounts payable   58,046 44,937     Contract liabilities   13,343 7,296     Other accounts payable   27,742 21,478     Provisions   48,181 39,502     Income tax liabilities   16,773 8,154     Financial liabilities   4,279 3,501     Total current liabilities   168,364 124,868                 Total shareholders' equity and liabilities   707,876 661,845                  

 

  Consolidated Statements of Cash Flows

PFEIFFER VACUUM TECHNOLOGY AG (in K€)   2021 2020                 Cash flow from operating activities:           Earnings before taxes   92,501 44,541     Adjustment for financial income/financial expenses   592 755     Interest income received   282 154     Interest expenses paid   -1,031 -945     Income taxes paid   -16,055 -11,675     Depreciation/amortization   26,103 25,933     Impairment losses   16,407 8,833     Gains/losses from disposals of long-term assets   775 484     Changes in allowances for doubtful accounts   730 507     Changes in inventory reserves   5,531 4,584     Other non-cash income and expenses   159 -639     Effects of changes in assets and liabilities:           Inventories   -30,094 -13,152     Receivables and other assets   -30,667 4,733     Provisions, including pensions, and income tax liabilities   1,643 -2,764     Payables   24,702 -2,158     Net cash provided by operating activities   91,578 59,191                 Cash flow from investing activities:           Capital expenditures   -41,607 -30,441     Proceeds from disposals of fixed assets   1,748 256     Net cash used in investing activities   -39,859 -30,185                 Cash flow from financing activities:           Proceeds from increase of financial liabilities   -55,062 -56     Dividend payments   -15,788 -12,335     Redemptions of leasing liabilities   -5,505 -4,930     Net cash used in financing activities   -76,355 -17,321                 Effects of foreign exchange rate changes
on cash and cash equivalents   1,124 -782                 Net changes in cash and cash equivalents   -23,512 10,903                 Cash and cash equivalents at beginning of period   122,883 111,980                 Cash and cash equivalents at end of period   99,371 122,883