According to preliminary, unaudited figures Elmos Semiconductor AG (FSE: ELG) increased its semiconductor sales by 7.7% to 273.4 million Euro in 2019. Including the divested micromechanics segment, total sales rose to 294.8 million Euro. Operating EBIT amounted to 45.3 million Euro, or 15.4% of sales. Reported EBIT stood at 97.3 million Euro after accounting for the gains realized from the sale of SMI in the amount of 63.1 million Euro and restructuring expenses in the amount of 11.1 million Euro resulting from the termination of the cooperation with the Fraunhofer Institute IMS. Capital expenditure accounted for 14.8% of sales. Adjusted free cash flow – substantially influenced by the cash inflow from the sale of SMI – was significantly positive at 76.9 million Euro. In Q4 2019, sales in the semiconductor business grew by 8.4% to 75.7 million Euro, while operating EBIT reached 11.0 million Euro corresponding to an EBIT margin of 14.6%.
“In a challenging market environment Elmos achieved a level of growth in 2019 that makes us stand out from the competition. Furthermore, the sale of SMI and the expansion of R&D capacities are just the right steps to support our focus on the attractive core business,” says Dr. Anton Mindl, CEO of Elmos. “Although we continue to expand our application and customer footprint throughout 2020, the currently difficult market environment and the already high sales level reached in 2019 allow for growth in the lower single-digit percentage range only.”
Based on the current subdued economic situation, particularly in the automotive sector, and subject to the as yet unforeseeable impact of the coronavirus on the economy, Elmos expects sales to grow in the low single-digit percentage range in 2020 compared to the sales of 273.4 million Euro generated in 2019 from the continued activities of the semiconductor segment. The EBIT margin is expected to be between 11% and 16%. Capital expenditure will account for less than 15% of sales. Elmos expects to achieve a positive adjusted free cash flow in 2020. The forecast for 2020 is based on an exchange rate of 1.10 USD/EUR.
Overview of selected, preliminary and unaudited financial figures in accordance with the IFRS (in millions of Euro/percent, unless indicated otherwise):
| 2019 | 2018 | Diff. | Q4/19 | Q4/18 | Diff. | |
|---|---|---|---|---|---|---|
| Sales | 294.8 | 277.6 | 6.2% | 75.7 | 75.6 | 0.1% |
| thereof continued operation | 273.4 | 253.9 | 7.7% | 75.7 | 69.8 | 8.4% |
| thereof discontinued operation | 21.4 | 23.7 | -9.6% | 0.0 | 5.7 | n.a. |
| Gross profit | 136.8 | 125.5 | 9.0% | 34.5 | 37.2 | -7.3% |
| Gross margin in % | 46.4% | 45.2% | 45.6% | 49.2% | ||
| Research and development | 44.6 | 36.0 | 23.7% | 11.1 | 10.5 | 6.4% |
| EBIT (reported) | 97.3 | 51.0 | 90.6% | 1.1 | 16.9 | -93.7% |
| EBIT (operational)* | 45.3 | 51.0 | -11.2% | 11.0 | 16.9 | -34.7% |
| EBIT margin (operational)* in % | 15.4% | 18.4% | 14.6% | 22.4% | ||
| Consolidated net income after non-controlling interests | 85.7 | 35.4 | >100% | 2.2 | 12.2 | -81.6% |
| Basic earnings per share (Euro) | 4.36 | 1.79 | >100% | 0.11 | 0.62 | -81.5% |
| Capital expenditures | 43.6 | 41.4 | 5.3% | 10.9 | 11.6 | -6.2% |
| Capital expenditures in % | 14.8% | 14.9% | 14.4% | 15.4% | ||
| Adjusted free cash flow | 76.9 | -3.3 | n.a. | 0.7 | -4.2 | n.a. |
* Without consideration of the result from the sale of the subsidiary SMI and without deduction of the restructuring expenses for the termination of the cooperation with the Fraunhofer Institute IMS
Detailed overviews of the financial figures, especially for the continued / discontinued operation, will be published with the presentation of the final figures in the 2019 Annual Report on March 19, 2020. The dividend proposal to the Annual General Meeting in May 2020 is also expected to be announced on this date.
Definitions of selected financial indicators
- Adjusted free cash flow: Cash flow from operating activities less capital expenditures for/plus disposal of intangible assets and property, plant and equipment (including payments from disposals of consolidated companies)
- Capital expenditures: Capital expenditures for intangible assets and property, plant and equipment less capitalized development expenses
- Further information on the key figures used can be found in the 2018 Annual Report of Elmos Semiconductor AG at www.elmos.com
Webcast/presentation for analysts
Elmos will be carrying out a webcast for analysts and investors on February 18, 2020, at 10:30 a.m. (CET). You will be able to access the webcast and the analyst presentation on the website.
About Elmos
Elmos develops, produces and markets semiconductors and sensors, primarily for use in the automotive industry. Our components communicate, measure, regulate and control safety, comfort, powertrain and network functions. For over 30 years, Elmos innovations have been bringing new functions to life and making mobility worldwide safer, more comfortable and more energy efficient.
Note
This release contains forward-looking statements based on assumptions and estimates made by the management of Elmos. Although we assume that the expectations contained in these forward-looking statements are realistic, we cannot guarantee that they will prove to be correct. The assumptions may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause such differences include, among others, changes in the economic and business environment, fluctuations in exchange rates and interest rates, the introduction of competing products, lack of acceptance of new products and changes in business strategy. Elmos does not plan to update the forward-looking statements, nor does it assume any obligation to do so.