NEWS RELEASE 

Pfeiffer Vacuum Reports Record Sales and Increased Operating Profit for Fiscal Year 2022
 

Asslar, Germany, March 21, 2023. Pfeiffer Vacuum Technology AG, a leading global manufacturer of vacuum solutions, today announced the audited financial results for the fiscal year 2022. The Company achieved record sales of EUR 916.7 million, an operating result (EBIT) of EUR 119.4 million for the full-year and an order backlog of EUR 502.7 million at year-end 2022.

Pfeiffer Vacuum sales for the year 2022 increased by 18.8% to EUR 916.7 million (2021: EUR 771.4 million), due to strong demand in all market segments, product groups and regions. Sales in the Semiconductor and Emerging Technologies segment increased by 19.8% to EUR 471.1 million (2021: EUR 393.2 million). The dynamic growth was driven by continued strong demand for microchips and the resulting need for vacuum technology. For the Analytics, Industry and R&D market segment, sales increased by 17.8% to EUR 445.6 million (2021: EUR 378.2 million) and demand continued to be broad-based.

The operating result (EBIT) increased by 28.2% to EUR 119.4 million (previous year: EUR 93.1 million) and the EBIT margin reached 13.0% (previous year: 12.1%). The year-over-year increase in EBIT in 2022 was primarily a result of strong sales, which were partly offset by cost related to securing supply chains – particularly additional material cost – and higher personnel cost as well as operating expenses in connection with the continued expansion of the global IT infrastructure.

For the full year 2022, the order intake was EUR 1,103.2 million (2021: EUR 964.3 million) and the book-to-bill ratio, the ratio of order intake to sales, was 1.20 (2021: 1.25). At the end of the reporting period 2022, Pfeiffer Vacuum had a record order backlog of EUR 502.7 million, representing an increase of 59.0% compared to the previous year (2021: EUR 316.2 million).

“2022 was an all-around successful financial year, particularly in light of record sales and order intake achieved in two consecutive years,” says Dr. Britta Giesen, CEO of Pfeiffer Vacuum Technology AG. “We are operating in the high-growth vacuum market that comes with cyclicality particularly in the semiconductor market. Our focus is on building Pfeiffer Vacuum for long-term growth by investing in production capacity ahead of demand and becoming an even more important partner to our customers in the high-vacuum market.”

Overview of key figures:

  12M/2022 12M/2021
 
  Change         Sales € 916.7 million € 771.4 million 18.8% EBIT € 119.4 million € 93.1 million 28.2% Net income € 86.4 million € 62.0 million 39.3% Earnings per share € 8.75 € 6.28 39.3% Dividend per share € 0.11* € 4.08 -97.3% Order intake € 1,103.2 million € 964.3 million  14.4% Order backlog € 502.7 million € 316.2 million  59.0%

*Subject to approval by the Annual General Meeting

The gross profit in the reporting period was EUR 329.3 million, up 17.4% from EUR 280.4 million in the previous year due to the significant sales increase. The gross margin decreased by 0.5 percentage points to 35.9% of sales (previous year: 36.4%) due to various effects, including increased procurement prices as well as freight costs as a result of challenging supply chain and market conditions. 

Net income increased by 39.3% to EUR 86.4 million (previous year: EUR 62.0 million), representing earnings per share of EUR 8.75 (previous year: EUR 6.28).

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 11.1% to EUR 358.3 million in Asia (previous year: EUR 322.5 million). This was particularly driven by the strong demand from semiconductor customers. Sales in Europe grew by 20.7% to EUR 305.9 million (previous year: EUR 253.4 million). The Americas’ sales increased by 29.1% to EUR 252.3 million (previous year: EUR 195.4 million) and were aided by positive currency effects related to the US Dollar to Euro exchange rate in 2022 compared to 2021. 

Solid balance sheet and cash position

As of December 31, 2022, Pfeiffer Vacuum maintained its solid financial position. Total assets at the end of the year 2022 were EUR 863.7, up EUR 155.8 million from the end of 2021 (2021: EUR 707.9 million). Inventories increased by 86.8 million to EUR 249.0 million (2021: EUR 162.2 million) to ensure the availability of materials in an environment with high business volume and difficult supply chain conditions. Capital expenditures during the fiscal year 2022 amounted to EUR 80.8 million (2021: EUR 41.6 million) and included investments in machinery, the expansion of facilities, and the construction of buildings in order to increase production capacity in the short- and medium-term. Cash and cash equivalents were EUR 67.8 million, down 31.7% from the previous year (2021: EUR 99.4 million). The equity ratio was at 61.5%, down 3.4 percentage points from the year-end 2021 (2021: 64.9%).

Outlook for the 2023 fiscal year

Pfeiffer Vacuum expects consolidated sales for the fiscal year 2023 to be approximately at the same level as for the fiscal year 2022 (EUR 916,7 million). This is due to a slowdown in demand from semiconductor customers as these are delaying the construction of production facilities. This effect is expected to be partially offset by a strong backlog at year-end 2023.

For the fiscal year 2023, the Company expects additional capital expenditures of about EUR 100 million. The main focus of these investments will be the expansion of production, logistic and service buildings as well as productivity improvements. These long-term investments also include sustainability goals, such as measures to reduce CO2 emissions. In addition, the modernization of IT systems will continue in 2023. Moreover, investments into research and development are planned as well. With these capital expenditures, the company aims to achieve its strategic goals: Gaining market share, reaching sales of over EUR 1 billion and driving sustainability.

Based on the forecasted sales development and due to the investments already made or further planned, the EBIT margin for 2023 is expected to slightly decrease to around 12% from the 2022 level of 13.0%. This is mainly attributable to anticipated cost increases, largely due to inflation, which cannot be passed on to customers in its entirety. These expectations, among others, assume that the supply chain will continue to stabilize and there will not be global economic disruptions related to military conflicts or trade wars.

Dividend proposal

The Management and Supervisory Boards will propose to the Annual General Meeting on May 2, 2023, to pay out a dividend of EUR 0.11 per share (previous year: EUR 4.08), reflecting a total payout of about EUR 1.1 million (previous year: EUR 4.08 dividend; total payout of EUR 40.3 million). The decision to decrease the proposed dividend compared to the previous year was made against the background of increased capital expenditures in fiscal year 2022 as well as 2023 to position Pfeiffer Vacuum for market share gains and long-term sustainable growth.

Domination and Profit and Loss Transfer Agreement

The Company has entered into a Domination and Profit and Loss Transfer Agreement in accordance with §§ 291 et seq. German Stock Corporation Act (AktG) between Pfeiffer Vacuum as the controlled company and Pangea GmbH (Pangea) as the controlling company. The purpose of the agreement is to further simplify the already close cooperation between Pfeiffer Vacuum and the Busch Group, and to improve the internal exchange of information within both companies. The Domination and Profit and Loss Transfer Agreement is subject to a number of different steps, including the approval of the Annual General Meeting of Pfeiffer Vacuum, which is scheduled for May 2, 2023, in Frankfurt am Main, and the approval of the Shareholders’ Meeting of Pangea GmbH. More details will be available shortly on the Company website at https://group.pfeiffer-vacuum.com/agm. 

 

Contact
Pfeiffer Vacuum Technology AG
Investor Relations
Heide Erickson
T +49 6441 802 1360
Heide.Erickson@pfeiffer-vacuum.com

 

About Pfeiffer Vacuum

Pfeiffer Vacuum (stock exchange symbol PFV, ISIN DE0006916604) is one of the world’s leading providers of vacuum solutions. In addition to a full range of hybrid and magnetically levitated turbopumps, the product portfolio comprises backing pumps, leak detectors, measurement and analysis devices, components as well as vacuum chambers and systems. Ever since the invention of the turbopump by Pfeiffer Vacuum, the company has stood for innovative solutions and high-tech products in the analytical, industrial, research & development, semiconductor and future technologies markets. Founded in 1890, Pfeiffer Vacuum is active throughout the world today. The company employs a workforce of some 4,000 people and has more than 20 sales and service companies as well as 10 manufacturing sites worldwide.

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

 

Consolidated Statements of Income
 
PFEIFFER VACUUM TECHNOLOGY AG               (in K€)   2022 2021                 Net sales   916,711 771,373     Cost of sales   -587,456 -490,965     Gross profit   329,255 280,408                 Selling and marketing expenses   -95,070 -79,371     General and administrative expenses   -80,014 -61,448     Research and development expenses   -36,728 -34,230     Other operating income   19,637 11,395     Other operating expenses   -17,714 -23,661     Operating profit   119,366 93,093                 Financial expenses   -854 -843     Financial income   340 251     Earnings before taxes   118,852 92,501                 Income taxes   -32,500 -30,514                 Net income   86,352 61,987                 Earnings per share (in €):           Basic   8.75 6.28     Diluted   8.75 6.28                            

 

 

Consolidated Balance Sheets
 
PFEIFFER VACUUM TECHNOLOGY AG
       
(in K€)                      
Dec. 31, 2022  
Dec. 31, 2021
              ASSETS         Intangible assets   106,467 91,524   Property, plant and equipment   226,664 175,952   Investment properties   328 352   Other financial assets   4,985 2,502   Other assets   640 791   Deferred tax assets   23,806 28,650   Total non-current assets   362,890 299,771             Inventories   248,993 162,178   Trade accounts receivable   153,154 119,587   Contract assets   3,506 1,392   Income tax receivables   3,641 4,796   Prepaid expenses   10,356 4,689   Other financial assets   257 168   Other accounts receivable   13,095 15,924   Cash and cash equivalents   67,840 99,371   Total current assets   500,842 408,105             Total assets   863,732 707,876             SHAREHOLDERS’ EQUITY AND LIABILITIES         Share capital   25,261 25,261   Additional paid-in capital   96,245 96,245   Retained earnings   416,099 370,007   Other equity components   -6,251 -32,137   Equity of Pfeiffer Vacuum Technology AG shareholders   531,354 459,376             Financial liabilities   7,858 13,876   Provisions for pensions   36,709 60,502   Deferred tax liabilities   4,064 4,437   Contract liabilities   1,497 1,321   Total non-current liabilities   50,128 80,136             Trade accounts payable   86,158 58,046   Contract liabilities   28,508 13,343   Other accounts payable   33,112 27,742   Provisions   50,748 48,181   Income tax liabilities   15,549 16,773   Financial liabilities   68,175 4,279   Total current liabilities   282,250 168,364             Total shareholders’ equity and liabilities   863,732 707,876                      

 

Consolidated Statements of Cash Flows
 
PFEIFFER VACUUM TECHNOLOGY AG
  (in K€)   2022 2021             Cash flow from operating activities:         Earnings before taxes   118,852 92,501   Adjustment for financial income/financial expenses   514 592   Interest income received   208 282   Interest expenses paid   -759 -1,031   Income taxes paid   -30,071 -16,055   Depreciation/amortization   31,233 26,103   Impairment losses   - 16,407   Gains/losses from disposals of long-term assets   -129 775   Changes in allowances for doubtful accounts   950 730   Changes in inventory reserves   7,432 5,531   Other non-cash income and expenses   2,147 159   Effects of changes in assets and liabilities:           Inventories   -91,358 -30,094     Receivables and other assets   -37,468 -30,667     Provisions, including pensions, and income tax liabilities   -2,520 1,643     Payables   47,933 24,702   Net cash provided by operating activities   46,964 91,578             Cash flow from investing activities:         Capital expenditures   -80,834 -41,607   Payments for acquisitions   -3,430 -   Proceeds from disposals of fixed assets   1,313 1,748   Net cash used in investing activities   -82,951 -39,859             Cash flow from financing activities:         Proceeds from increases of financial liabilities   58,597 -   Dividend payments   -40,260 -15,788   Redemptions of leasing liabilities   -12,670 -5,505   Redemptions of financial liabilities   - -55,062   Net cash provided by/used in financing activities   5,667 -76,355             Effects of foreign exchange rate changes
on cash and cash equivalents   -1,211 1,124             Net changes in cash and cash equivalents   -31,531 -23,512             Cash and cash equivalents at beginning of period   99,371 122,883             Cash and cash equivalents at end of period   67,840 99,371