PRESS RELEASE

Pfeiffer Vacuum reports sound performance in fiscal year 2019

Asslar, March 26, 2020. Pfeiffer Vacuum Technology AG, a leading global manufacturer of vacuum solutions, today announces audited results for the fiscal year 2019. They correspond to the preliminary results announced on February 20, 2020. The company reported sales of EUR 632.9 million, operating results (EBIT) of EUR 65.2 million and an EBIT margin of 10.3 %. These results are in line with the guidance provided in September 2019.

Compared to the previous year, when Pfeiffer Vacuum reached sales at a record level, sales decreased by 4.1% in 2019 (2018: EUR 659.7 million), primarily driven by challenging market conditions in the coating market and a weaker demand from semiconductor customers. This was partly offset by a strong performance in the industry market segment and the growth in the R&D and analytics markets. The operating result (EBIT) decreased by 31.5% (previous year: EUR 95.1 million) and the EBIT margin was 10.3% (previous year: 14.4%). The decrease in sales put pressure on operating results. In addition, increased expenses to drive market share growth and to improve the EBIT margin to over 20% by 2025 as outlined in the company's growth strategy had a negative effect on the operating performance.

The book-to-bill ratio, the ratio of order intake to sales, was 0.95 for the full year. At the end of the fourth quarter, Pfeiffer Vacuum had an order backlog of EUR 110.7 million, representing a decrease of 23.6% compared to the previous year (EUR 144.9 million).

The Management and Supervisory Boards will propose to pay out a dividend of EUR 1.25 per share (previous year: EUR 2.30) at the Annual General Meeting. This takes into consideration the increased expenses related to the implementation of the growth strategy, which were especially significant in 2019, the expected investments in 2020, as well as the Coronavirus situation. The payout ratio would thus represent 25.5% of the Group result.

"2019 was a year of preparing for the transformation of the company to an even stronger market position in the high-vacuum market and to drive operational efficiencies," says Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG. "Our focus for 2020 is first and foremost on managing through the Coronavirus related business challenges and protecting the health and safety of our employees as well as meeting our customers' needs."

Nathalie Benedikt, CFO comments: "In 2020 we will continue the execution of our growth strategy. However, we will take into consideration the new economic realities that the Coronavirus presents to balance expenses."

Overview of key figures:

  12M/2019 12M/2018 Change         Sales € 632.9 million € 659.7 million -4.1% EBIT € 65.2 million € 95.1 million -31.5% Net income € 48.4 million € 68.9 million - 29.8% Earnings per share € 4.90 € 6.98 - 29.8% Dividend per share € 1.25* € 2.30 - 45.7% Order intake € 598.7 million € 677.2 million - 11.6% Order backlog € 110.7 million € 144.9 million - 23.6%  

*Subject to approval by the Annual General Meeting

The gross profit in the reporting period was EUR 215.9 million (previous year: EUR 235.2 million). The year-over-year decline is due to reduced sales and negative economies of scale.

Net income declined to EUR 48.4 million (previous year: EUR 68.9 million) representing earnings per share of EUR 4.90 (previous year: EUR 6.98).

Sales growth in the Americas
Sales by region, which describes sales according to the location of the customers in their corresponding region, Americas contributed to an increase in sales of 2.2% to EUR 169.7 million (previous year: EUR 165.9 million). Europe showed a decrease of 6.0% to EUR 232.0 million (previous year: EUR 247.0 million). Sales in Asia declined by 6.3% to EUR 231.1 million (previous year: EUR 246.6 million) due to an adverse environment in the semiconductor and coating markets.

Sales by product: Year-over-year increase in systems and service
With EUR 191.6 million sales of turbopumps were flat compared to the previous year (previous year: EUR 192.1 million). Instruments and components sales reached EUR 184.6 million (previous year: EUR 193.7 million). With a sales volume of EUR 124.2 million (previous year: EUR 143.4 million), backing pump sales were the most impacted by challenging semiconductor and coating market conditions compared to the previous year. Sales from services increased by 1.1% to EUR 112.8 million (previous year: EUR 111.6 million). Systems, a predominantly project-oriented area, increased sales by 4.5% over the previous year to EUR 19.7 million (previous year: EUR 18.9 million).

Industry market reports record sales
The industry market sector grew by 10.5% in a challenging market, to a record total sales volume of EUR 149.5 million (previous year: EUR 135.3 million). This is partly due to the increased use of new high-vacuum technology applications. Sales in the semiconductor market, the Company's largest market, declined by 8.7% to EUR 222.6 million compared to EUR 243.9 million in the previous year. This development is attributable to the adverse market environment. The coating market dropped by 24.1% to EUR 75.6 million (previous year: EUR 99.6 million) due to a weaker solar market. On the other hand, Analytics with sales of EUR 118.5 million (previous year: EUR 116.7 million) and R&D with sales of EUR 66.7 million (previous year: EUR 64.2 million), both grew year-over-year.

Innovation leadership and strengthening of production capabilities
During 2019 production facilities at the sites in France and Romania were modernized and capacity expanded. Furthermore, Pfeiffer Vacuum established production capabilities in China. In addition, the HiLobe product line, which has exceptional short pump-down times, and the ASM 306 S, a new leak detector with break-through technology, were introduced.

Outlook for the 2020 fiscal year
Sales and order intake in the semiconductor market were strong entering 2020. However, the Company expects an impact on the business related to the Coronavirus, which cannot be predicted at this point-in-time. Expectations for 2020, outlined in February 2020 and in the Annual Report, of revenue growth, EBIT margins flat to 2019 and expected capital investments in the range of EUR 40 to 60 million are therefore invalid.

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 approximately 3,200 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€)   2019 2018             Net sales   632,865 659,725   Cost of sales   -416,995 -424,517   Gross profit   215,870 235,208             Selling and marketing expenses   -71,669 -68,371   General and administrative expenses   -52,293 -49,106   Research and development expenses   -29,620 -28,663   Other operating income   7,768 11,302   Other operating expenses   -4,904 -5,240   Operating profit   65,152 95,130             Financial expenses   -853 -727   Financial income   216 208   Earnings before taxes   64,515 94,611             Income taxes   -16,158 -25,732             Net income   48,357 68,879             Earnings per share (in €):         Basic   4.90 6.98   Diluted   4.90 6.98               Consolidated Balance Sheets

PFEIFFER VACUUM TECHNOLOGY AG   (in K€)   Dec. 31, 2019 Dec. 31, 2018                 ASSETS           Intangible assets   112,244 109,460     Property, plant and equipment   154,701 126,143     Investment properties   400 424     Other financial assets   4,031 4,282     Other assets   2,034 3,200     Deferred tax assets   27,377 24,895     Total non-current assets   300,787 268,404                 Inventories   128,484 133,191     Trade accounts receivable   87,867 92,164     Contract assets   2,860 298     Income tax receivables   9,962 3,726     Prepaid expenses   4,308 3,504     Other financial assets   3,161 609     Other accounts receivable   10,166 13,884     Cash and cash equivalents   111,980 108,380     Total current assets   358,788 355,756                 Total assets   659,575 624,160                 SHAREHOLDERS' EQUITY AND LIABILITIES           Share capital   25,261 25,261     Additional paid-in capital   96,245 96,245     Retained earnings   304,552 278,891     Other equity components   -32,613 -28,172     Equity of Pfeiffer Vacuum Technology AG shareholders   393,445 372,225                 Financial liabilities   69,729 60,182     Provisions for pensions   64,103 55,638     Deferred tax liabilities   5,041 4,638     Contract liabilities   584 630     Total non-current liabilities   139,457 121,088                 Trade accounts payable   41,137 38,054     Contract liabilities   12,259 18,271     Other accounts payable   23,406 25,740     Provisions   38,735 41,626     Income tax liabilities   7,248 7,061     Financial liabilities   3,888 95     Total current liabilities   126,673 130,847                 Total shareholders' equity and liabilities   659,575 624,160                   Consolidated Statements of Cash Flows

PFEIFFER VACUUM TECHNOLOGY AG (in K€)   2019 2018                     Cash flow from operating activities:             Earnings before taxes   64,515 94,611       Adjustment for financial income/financial expenses   637 519       Financial income received   189 177       Financial expenses paid   -818 -900       Income taxes paid   -18,717 -22,703       Depreciation/amortization   24,226 18,591       Gain/loss from disposals of long-term assets   341 -1,532       Changes in allowances for doubtful accounts   350 590       Changes in inventory reserves   4,441 1,467       Other non-cash changes   -1,859 6       Effects of changes in assets and liabilities:             Inventories   904 -20,035       Receivables and other assets   -2,198 -19,329       Provisions, including pensions, and income tax liabilities   -1,159 -425       Payables   -5,472 11,510       Net cash provided by operating activities   65,380 62,547                     Cash flow from investing activities:             Capital expenditures   -34,913 -33,669       Proceeds from disposals of fixed assets   650 2,177       Net cash used in investing activities   -34,263 -31,492                     Cash flow from financing activities:             Proceeds from increase of financial liabilities   97 23       Dividend payments   -22,696 -19,735       Redemptions of leasing liabilities   -5,257 -87       Net cash used in financing activities   -27,856 -19,799                     Effects of foreign exchange rate changes
on cash and cash equivalents   339 -278                     Net changes in cash and cash equivalents   3,600 10,978                     Cash and cash equivalents at beginning of period   108,380 97,402                     Cash and cash equivalents at end of period   111,980 108,380