PRESS RELEASE

Pfeiffer Vacuum benefits from strong semiconductor business in challenging overall environment during H1 2020

- Sales of EUR 301.9 million, down 3.0% from the previous year

- Operating result (EBIT) of EUR 19.5 million and EBIT margin of 6.5%

- Order intake of EUR 316.6 million, up 7.8% compared to previous year

Asslar, August 4, 2020. Pfeiffer Vacuum Technology AG, a leading global manufacturer of vacuum solutions, today announced consolidated results for the first half of 2020.

Pfeiffer Vacuum sales for the first six months 2020 declined slightly by 3.0% to EUR 301.9 million compared to the previous year (H1 2019: EUR 311.1 million), primarily driven by lower sales in the coating, analytics, industry and R&D markets, offset by a strong performance in the semiconductor market. Sales in the semiconductor and coating market combined increased by 7.6% to EUR 158.5 million (H1 2019: 147.3 million) whereas sales in the industry, analytics and R&D market segments decreased by 12.5% to EUR 143.4 million (H1 2019: 163.8 million).

The operating result (EBIT) of EUR 19.5 million represents a decrease by 40.5% compared to the previous year (H1 2019: EUR 32.8 million). The EBIT margin reached 6.5% (H1 2019: 10.6%). The year-over-year decline in EBIT was primarily a result of the decrease in sales, productivity losses through COVID-19 and due to changes in sales mix. In addition, increased expenses to drive market share growth and to improve the EBIT margin to 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 at 1.05 for the first half of the year 2020. The order intake was strong despite COVID-19 and reached EUR 316.6 million, up 7.8% compared to first half of 2019. At the end of the second quarter 2020, Pfeiffer Vacuum had an order backlog of EUR 125.4 million, roughly stable compared to the previous year (June 30, 2019: EUR 127.5 million).

"Our results for the first half of 2020 were particularly impacted by COVID-19 and the global recession in the second quarter 2020," says Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG. "However, we are operating in the very attractive growth market of high-vacuum applications, have leading technology, a broad customer base and committed employees. This positions us well in an overall challenging market environment."

Nathalie Benedikt, CFO comments: "Pfeiffer Vacuum is in a strong financial position. This provides the foundation for our commitment to execute our strategy to drive market share gains and operational efficiencies. However, it is essential that we remain agile and make adjustments where needed, particularly in the current market environment."

Overview of key figures:

    H1/2020 H1/2019 Change           Sales   € 301.9 million € 311.1 million - 3.0% EBIT   € 19.5 million € 32.8 million - 40.5% Net income   € 13.5 million € 23.3 million - 41.9% Earnings per share   € 1.37 € 2.36 - 41.9% Order intake   € 316.6 million € 293.7 million + 7.8%                         Q2/2020 Q2/2019 Change           Sales   € 148.5 million € 157.4 million - 5.6% EBIT   € 6.7 million € 14.7 million - 54.2% Net income   € 4.7 million € 10.4 million - 55.1% Earnings per share   € 0.47 € 1.06 - 55.7% Order intake   € 143.7 million € 144.9 million - 0.8% Order backlog   € 125.4 million € 127.5 million - 1.6%

In sales by region, which describes sales according to the location of the customers in their corresponding region, Pfeiffer Vacuum in the Americas achieved a year-over-year increase in sales by 2.2% to EUR 84.5 million for the first half 2020 (H1 2019: EUR 82.7 million) driven by sales to semiconductor customers. Europe showed a decrease of 5.4% to EUR 108.7 million (H1 2019: EUR 114.9 million). Sales in Asia declined by 4.3% to EUR 108.6 million (H1 2019: EUR 113.4 million), mainly related to market conditions in the coating market.

The gross profit for the first half of 2020 was EUR 102.6 million (H1 2019: EUR 109.0 million). The year-over-year decline is due to negative economies of scale related to sales declines, sales mix and productivity impact related to COVID-19 measures.

Net income declined to EUR 13.5 million (H1 2019: EUR 23.3 million) representing earnings per share of EUR 1.37 (H1 2019: EUR 2.36).

Balance sheet and cash-flow
As of June 30, 2020, Pfeiffer Vacuum maintained its solid financial position. Total assets at the end of second quarter 2020 were EUR 657.2 million down slightly from year-end 2019 (December 31, 2019: EUR 659.6 million). Cash and cash equivalent were EUR 106.4 million (December 31, 2019: EUR 112.0 million) and the Company is net debt free from a financial liability perspective. The equity ratio was at 59.6%, unchanged from the year-end 2019 (December 31, 2019: 59.6%).

Outlook
Due to the impact of COVID-19 on the global economy, Pfeiffer Vacuum remains unable to make a reliable forecast. Critical semiconductor customers currently remain committed to their expansion. However, economic activity in other markets served has declined. Therefore, the Company does not expect improvements in sales or operating results in the second half of 2020 compared to the first half of 2020.

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 3,300 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 (unaudited)                                         Three months ended June 30,   Six months ended
June 30,     2020   2019   2020   2019     in K€   in K€   in K€   in K€ Net sales   148,526   157,375   301,854   311,108 Cost of sales   -99,163   -104,040   -199,219   -202,104 Gross profit   49,363   53,335   102,635   109,004                   Selling and marketing expenses   -18,067   -18,255   -36,100   -36,302 General and administrative expenses   -15,441   -13,127   -30,759   -26,327 Research and development expenses   -9,820   -7,301   -17,519   -14,812 Other operating income   1,924   1,307   4,645   3,485 Other operating expenses   -1,228   -1,257   -3,354   -2,203 Operating profit   6,731   14,702   19,548   32,845                   Financial expenses   -222   -221   -453   -443 Financial income   55   26   94   62 Earnings before taxes   6,564   14,507   19,189   32,464                   Income taxes   -1,888   -4,091   -5,658   -9,155                   Net income   4,676   10,416   13,531   23,309                   Earnings per share (in €):                 Basic   0.47   1.06   1.37   2.36 Diluted   0.47   1.06   1.37   2.36                     Consolidated Balance Sheets (unaudited)                                 June 30, 2020   December 31, 2019     in K€   in K€ Assets         Intangible assets   113,438   112,244 Property, plant and equipment   153,496   154,701 Investment properties   388   400 Other financial assets   1,689   4,031 Contract assets   216   - Other assets   624   2,034 Deferred tax assets   27,709   27,377 Total non-current assets   297,560   300,787           Inventories   136,713   128,484 Trade accounts receivable   88,619   87,867 Contract assets   2,758   2,860 Income tax receivables   4,134   9,962 Prepaid expenses   6,643   4,308 Other financial assets   2,987   3,161 Other accounts receivable   11,361   10,166 Cash and cash equivalents   106,385   111,980 Total current assets   359,600   358,788           Total assets   657,160   659,575           Shareholders' equity and liabilities         Share capital   25,261   25,261 Additional paid-in capital   96,245   96,245 Retained earnings   305,748   304,552 Other equity components   -35,668   -32,613 Equity of Pfeiffer Vacuum Technology AG shareholders   391,586   393,445           Financial liabilities   68,724   69,729 Provisions for pensions   66,449   64,103 Deferred tax liabilities   4,690   5,041 Contract liabilities   834   584 Total non-current liabilities   140,697   139,457           Trade accounts payable   39,538   41,137 Contract liabilities   15,159   12,259 Other accounts payable   26,746   23,406 Provisions   38,296   38,735 Income tax liabilities   1,831   7,248 Financial liabilities   3,307   3,888 Total current liabilities   124,877   126,673           Total shareholders' equity and liabilities   657,160   659,575               Consolidated Statements of Cash Flows (unaudited)                                 Six months ended June 30,     2020   2019     in K€   in K€ Cash flow from operating activities:         Net income   13,531   23,309 Depreciation/amortization   13,294   11,564 Other non-cash income/expenses   2,511   2,367 Effects of changes of assets and liabilities:         Inventories   -11,911   -13,129 Receivables and other assets   3,979   10,894 Provisions, including pensions, and income tax liabilities   -3,731   -7,059 Payables, other liabilities   5,214   -4,904 Net cash provided by operating activities   22,887   23,042           Cash flow from investing activities:         Capital expenditures   -13,271   -13,034 Proceeds from disposals of fixed assets   147   102 Net cash used in investing activities   -13,124   -12,932           Cash flow from financing activities:         Principal elements of lease payments   -2,345   -2,183 Dividend payment   -12,335   -22,696 Redemptions of financial liabilities   -120   -23 Net cash provided by/used in financing activities   -14,800   -24,902           Effects of foreign exchange rate changes on cash and cash equivalents   -558   -229           Net change in cash and cash equivalents   -5,595   -15,021           Cash and cash equivalents at beginning of period   111,980   108,380           Cash and cash equivalents at end of period   106,385   93,359