DGAP-News: Pfeiffer Vacuum Technology AG: Sales increase in 2018 by 12.4 % to EUR 659.7 million, reaching a new record high

PRESS RELEASE

Pfeiffer Vacuum: Sales increase in 2018 by 12.4 % to EUR 659.7 million, reaching a new record high
 

- Total sales increase by 12.4 % to EUR 659.7 million

- EBIT increases by 33.3 % to EUR 95.1 million

- EBIT margin improves by 2.2 percentage points to 14.4 %

- Order backlog 13.7 % over the previous year as of year end

Asslar, Germany, March 28, 2019 Pfeiffer Vacuum, a leading global manufacturer of vacuum solutions, increased its record sales from the previous year by a further 12.4 %. The Group sales for the 2018 fiscal year provisionally announced on, and audited in the time since, February 21, 2019, came to EUR 659.7 million (previous year: EUR 587.0 million). At EUR 95.1 million, the operating result (EBIT) achieved an increase of 33.3 % over the previous year's record result (EUR 71.4 million). The higher sales and economies of scale in selling and administrative expenses increased the operating result. An improved currency result over the previous year was also beneficial. The EBIT margin reached 14.4 %, 2.2 percentage points over the previous year. Adjusted for PPA effects of EUR 5.2 million, the operating result came to around EUR 100.3 million. The adjusted EBIT margin was thus 15.2 %, which corresponds to an increase of 2 percentage points over the previous year.

Order intake for the 2018 fiscal year came to EUR 677.2 million (previous year: EUR 642.1 million). This corresponds to an increase of EUR 35.1 million over the previous year. The book-to-bill ratio - the ratio of incoming orders to sales - came to 1.03 in 2018 (previous year: 1.09). At the end of the year, the order backlog came to EUR 144.9 million and was thus 13.7 % over the previous year's value of EUR 127.4 million.

Because of the excellent results in the 2018 fiscal year and the solid financial strength of the Company, the Management Board and Supervisory Board will propose to pay out a dividend of EUR 2.30 per share at the Annual General Meeting on May 23, 2019 (previous year: EUR 2.00). The payout ratio would thus represent 33 % of the Group result.

Overview of key figures:

                                                      2018                                             2017           Change
Sales                        EUR 659.7 million                        EUR 587.0 million           +12.4 %
EBIT                         EUR 95.1 million                          EUR 71.4 million             +33.3 %
Net income               EUR 68.9 million                          EUR 53.8 million             +27.9 %
Earnings per share   EUR 6.98                                     EUR 5.46                        +27.8 %
Dividend per share   EUR 2.30*                                    EUR 2.00                        +15.0 %
Order intake              EUR 677.2 million                        EUR 642.1 million            +5.5 %
/ from acquisitions     EUR 64.0 million                         EUR 56.3 million             +13.7 %
Order backlog           EUR 144.9 million                       EUR 127.4 million            +13.7 %

*Subject to approval by the Annual General Meeting

Nathalie Benedikt, CFO of Pfeiffer Vacuum Technology AG, comments, "2018 was a very successful year with a significant increase in sales and earnings. A major focus this year was on the initial implementation of our three-year investment program with a total volume of EUR 150 million, to enable our growth strategy. In 2018 a total of EUR 43.8 million have been approved, whereof EUR 33.7 million were capitalized."

Sales growth in all regions
In a breakdown of sales by region, which describes sales according to the headquarters of our customers in their corresponding region, Europe showed a pleasing increase of 11.0 % to EUR 247.0 million (previous year: EUR 222.5 million). Sales in Asia increased by 11.9 % to EUR 246.6 million (previous year: EUR 220.3 million). The Americas showed a relatively strong increase in sales of 15.4 % to EUR 165.9 million (previous year: EUR 143.8 million). The causes of this included the complete recognition of the sales of the Californian company Nor-Cal Products Inc., which was acquired in June 2017.

Diversified product portfolio growing in all divisions
Sales of turbopumps grew again by double digits compared to the previous year and recorded an increase of 10.8 % to EUR 192.1 million (previous year: EUR 173.4 million). Turbopumps were once again a key product, representing a share of 29.1 % of total sales (pervious year: 29.5 %). Instruments and components became the strongest product group, with a share of sales of 29.4 % (previous year: 27.4 %). With sales growth of EUR 33.1 million, this product group recorded the biggest sales growth in absolute terms. However, it must be taken into account that more than 30% of total sales with instruments and components of EUR 193.7 million (previous year: EUR 160.6 million) are attributed to acquisitions. With a sales volume of EUR 143.4 million, backing pumps recorded an increase of 8.0 % over the previous year (EUR 132.8 million). Backing pumps contribute to the total balanced sales distribution of the Pfeiffer Vacuum Group with a share of total sales of 21.7 %. Sales from services increased by 3.5 % to EUR 111.6 million (previous year: EUR 107.8 million), corresponding to 16.9 % of total sales. Systems, a predominantly project-oriented area, increased sales by 52.7 % over the previous year to EUR 18.9 million (previous year: EUR 12.4 million).

Semiconductor market accounts for the greatest share of sales
All market segments of Pfeiffer Vacuum recorded significant growth in the past year. The semiconductor market grew by 8.2 % to a total sales volume of EUR 243.9 million (previous year: EUR 225.4 million). With a share of 37.0 % (previous year: 38.4 %), the semiconductor market represented the largest share of total sales. Both in absolute and in relative terms, the coatings market achieved the strongest growth with an increase 34.2 % to EUR 99.6 million. The coatings market was able to expand its position in total sales with a share of 15.1 % (previous year: 12.6 %). In the analytics market sales increased by 16.6 % to EUR 116.7 million (previous year: EUR 100.1 million). With a share of 17.7 % of total sales (previous year: 17.0 %), the analytics market has once again grown in importance compared to the previous year. The heterogeneous industry market segment, with customers from sectors ranging from the automotive industry to pharmaceuticals, recorded growth of 4.8 %
to EUR 135.3 million (previous year: EUR 129.1 million). With a share of 20.5 %, industry is the second strongest customer market after the semiconductor market. Sales in the research and development market segment increased by 10.4 % to EUR 64.2 million (previous year: EUR 58.2 million). The share of total sales remained largely stable at 9.7 % (previous year: 9.9 %).

The gross profit in the reporting period increased by 12.0 % to EUR 235.2 million (previous year: EUR 210.0 million), which corresponds to growth of EUR 25.2 million. Carried by record sales, the gross margin remained largely constant at 35.7 % (previous year: 35.8 %), despite a relative increase in cost of sales as well as PPA and currency effects through the year's stronger Euro.

The financial result of EUR -0.5 million roughly matched the previous year's figure of EUR -0.4 million due to the unchanged low interest rate in the eurozone. Influenced in the previous year by one-off effects of the U.S. tax reform, the tax rate rose, as expected, to 27.2 % (previous year: 24.2 %). Because of the significantly higher earnings before tax and the increased tax rate, the tax expenses increased by EUR 8.5 million to EUR 25.7 million (previous year: EUR 17.2 million).

Net income increased by 27.9 % to EUR 68.9 million (previous year: EUR 53.8 million). Return on sales after tax - the ratio of net income to sales - increased from 9.2 % in the previous year to 10.4 %. Parallel to net income, earnings per share improved to a record level of EUR 6.98 (previous year: EUR 5.46).

Investments in production capacities for future growth
The first milestones of the investment program with a volume of EUR 150 million created by the Management Board and Supervisory Board in the spring were achieved in the past fiscal year. Production capacities were expanded at the Annecy, Asslar, Cluj and Ho Chi Minh City sites with investment expenditures of EUR 33.7 million. In addition to this, first investments were made in the plants as well as in operating and office equipment.

Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG, comments, "Pfeiffer Vacuum achieved outstanding results in 2018. The year 2018 was also a year of trendsetting innovations that will make us stronger, bigger and more competitive in the medium term. These include the introduction of the new group strategy with a global organizational structure, the three-year investment program and the planned strategic cooperation with the Busch Group. Implementing these initiated measures will establish Pfeiffer Vacuum as the second strongest provider in the vacuum market worldwide. At the same time, we want to be true to our own standards and take the leading position in innovation and technology."

Outlook for the 2019 fiscal year
Both sales and order intake in the first months of 2019 show a weakening compared to the strong previous year. The growth rate will therefore probably be lower than in the previous year. Due to the limited visibility of incoming orders of two to three months, we will announce a sales and EBIT forecast range for 2019 at the Annual General Meeting to be held on May 23, 2019.

Contact
Pfeiffer Vacuum Technology AG
Investor Relations
Dinah Reiss
T +49 6441 802 1346
F +49 6441 802 1365
Dinah.Reiss@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 today. The Company employs approx. 3,200 employees, has over 20 sales and service companies and operates 8 manufacturing sites worldwide.

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