Full-Year Results 2018

With the successful initial public offering (IPO) in March 2018, great progress in positioning Sensirion as a supplier of automotive sensor solutions, and an increased footprint in Asia, important milestones in the strategic development of the company were achieved. In addition, the successful launch of the carbon dioxide and particulate matter sensors significantly expanded Sensirion’s product portfolio of environmental sensors. Expectations communicated at IPO achieved The results of 2018 show that the expectations communicated at the IPO have been achieved. After a very dynamic first half, which exceeded expectations, the second half of the year resulted in lower revenue growth as expected. The reasons for this development were inventory optimizations of important customers and the global macroeconomic environment which noticeably slowed down in the last months. In all end markets, we currently observe uncertainty how the global economy will further develop. Consolidated revenue amounted to CHF 174.8 million, +18% compared to the previous year, of which 11% was organic, 6% inorganic, and 1% due to foreign exchange effects. As a result, consolidated revenue was at the upper end of the indication given in connection with the IPO in March 2018. With a gross margin of 53% and, after adjusting for one-off effects, an adjusted EBITDA of CHF 27.8 million (16 % of revenue), the expectations communicated at the IPO could be achieved. One-off effects, in sum CHF 18.6 million, primarily attributable to the “IPO Loyalty Share Program” and other IPO-related costs, resulted in an operating loss of CHF 4.4 million and a net loss of CHF 6.4 million for the period. Generated free cash flow was CHF 22.8 million. Together with the net proceeds from the IPO, this free cash flow yielded a net cash position of CHF 42.6 million as of 31 December 2018. In connection with the IPO, all employees of Sensirion received under a one-time employee participation plan, the IPO Loyalty Share Program, a gratification in shares. The allocation of shares was primarily based on the duration of employment of each employee up to the IPO. Financially, the IPO Loyalty Share Program impacts the years 2018 and 2019 by CHF 16.2 million and c. CHF 5.2 million, respectively