INFICON: Profitable Growth in Demanding Environment

Corporate Contact
Matthias Tröndle
Chief Financial Officer
+423 388 3510
matthias.troendle@inficon.com

'Ad hoc announcement pursuant to Art. 53 LR'

Announcement of Inficon Holding AG

Bad Ragaz/Switzerland, October 24, 2024

• Sales increase in the third quarter by 3.1% to USD 172.2 million compared with the previous quarter; a plus of 1.3% over the previous year
• Record sales in the Semi & Vacuum Coating as well as in the Security & Energy market
• Operating profit up 3.7% to USD 34.9 million; margin increase to 20.3% from 19.9% a year ago
• Strong operating cash flow of USD 45.9 million
• Guidance 2024: Sales USD 660-670 (prev. 660-690) million; operating profit margin around 20% (unchanged)

INFICON Holding AG (SIX Swiss Exchange: IFCN) reports 3.1% higher sales of USD 172.2 million for the third quarter of 2024 compared with the previous quarter. This is the second-best quarterly sales figure ever. In comparison with the same period of last year, sales picked up by 1.3%. With negligible currency effects and 0.2 percentage points from acquisitions, the organic increase was 1.1%. The gross profit rose 3.6% from USD 78.8 million to USD 81.6 million, yielding an improved gross profit margin of 47.4%. After higher research and development costs of USD 13.9 million (last year period: USD 12.3 million) and flat selling, general, and administrative costs of USD 32.8 million, INFICON achieved an operating profit of USD 34.9 million or 20.3% of sales – up from 19.9% a year ago. With USD 26.3 million, net income for the period equals last year’s figure and reached 15.3% of sales after 15.5% a year ago.

Cash Flow and Balance Sheet

In the third quarter 2024, INFICON generated a strong operating cash flow of USD 45.9 million, compared with USD 37.6 million in the third quarter 2023. This reflects the strong net income generation in combination with a clear focus on cash collections. Days sales outstanding fell from 52.6 days last year to 48.7 days. Working capital remained stable at USD 221.4 million despite a small increase in inventories. INFICON closed the quarter with a net cash position of USD 51.5 million. The equity ratio improved slightly from 64.0% at the end of June 2024 to 64.7% at the end of September 2024.

Developments in the target markets and world regions

INFICON supplies products and services to a wide range of global technology markets. With sales of USD 90.2 million and an increase of 27.1% over the same period of last year, INFICON continues its growth path in the Semi & Vacuum Coating market with record sales. This target market contributed 52.4% to Group sales, mainly due to the strong development is Asia. Quarter over quarter, sales grew by 7.4%. The overall outlook for this market remains positive, despite some international trade uncertainties and a slower recovery of the global semiconductor markets. The momentum here should accelerate in 2025. In contrast, sales to the General Vacuum market where INFICON addresses a broad range of industrial and research customers, fell in the yearly comparison by 29.2% to USD 37.6 million. This represents 21.9% of Group sales. A year ago, third quarter sales were at record level, driven by solid orders and the reduction of a significant order backlog after previous supply chain issues were solved.  This year's sales reflect a normalized backlog situation in a generally sluggish global macroeconomic environment, particularly in Europe and certain sectors such as the solar industry that are experiencing temporary slowdowns. However, quarter over quarter, incoming orders improved and sales picked up by 6.0% again in the third quarter; INFICON is therefore moderately positive for the further development. The Refrigeration, Air Conditioning & Automotive market reports lower sales volumes year-over-year (-11.5%) and quarter-over-quarter (-9.4%), following an exceptional fiscal 2023 featuring a sales increase of 30%, record-high third quarter sales, and a significant backlog reduction. Sales reached USD 32.9 million and accounted for 19.1% of Group sales. The demand from the automotive and battery industry is temporarily weaker, most notably so in Europe, following the outstanding growth in the last quarters; the business in Asia is developing quite positively in a difficult environment. The global air conditioning and refrigeration market was overall flat with growth in some select markets. INFICON's smallest target market, Security & Energy (6.7% of sales) benefitted from a strong order book. Sales reached a new quarterly record level and picked up by 31.6% to USD 11.4 million year-over-year or by 1.8% compared with the preceding second quarter. INFICON is confident for the next quarters for this market.

Outlook
INFICON is optimistic for the upcoming quarters. However, the Company is aware of the general macroeconomic dynamics, the geopolitical tensions, and most notably the mixed signals as to the extent and timing of the next cycle in the semiconductor business. INFICON expects a solid final quarter and is now forecasting full-year 2024 sales of USD 660 to 670 (previously 660 to 690) million and an operating profit margin of around 20%.

Presentation and Web Conference  

The presentation on the third quarter results is now available for download in the investor section of the INFICON website www.inficon.com at https://ir.inficon.com/financial-results-and-presentations/.

INFICON discusses the third quarter 2024 results in more detail today at 0930 a.m. CEST in an English-language web conference. Please access the Microsoft Teams Conference using the following link:  www.inficon.com/web-conference

Communication Calendar 2024/2025

The communication calendar of INFICON is continuously updated and available online in the Investors’ section of the INFICON website, https://ir.inficon.com/financial-calendar/.

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About INFICON               

INFICON is a leading provider of innovative instrumentation, critical sensor technologies, and Smart Manufacturing /Industry 4.0 software solutions that enhance productivity and quality of tools, processes and complete factories. These analysis, measurement, and control products are essential for gas leak detection in air conditioning/refrigeration, and automotive manufacturing. They are vital to equipment manufacturers and end-users in the complex fabrication of semiconductors and thin film coatings for optics, flat panel displays, solar cells and industrial vacuum coating applications. Other users of vacuum based processes include the life sciences, research, aerospace, packaging, heat treatment, laser cutting and many other industrial processes. We also leverage our expertise in vacuum technology to provide unique, toxic chemical analysis products for emergency response, security, and environmental monitoring. INFICON is headquartered in Switzerland and has world-class manufacturing facilities in Europe, the United States and China, as well as subsidiaries in China, Denmark, Finland, France, Germany, Italy, Japan, Korea, Liechtenstein, Malaysia, Mexico, Singapore, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. INFICON registered shares (IFCN) are listed on SIX Swiss Exchange. For more information about INFICON and its products, please visit www.inficon.com.  

This press release and oral statements or other written statements made, or to be made by us contain forward-looking statements that do not relate solely to historical or current facts. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.