Witnessing and Mirroring: A Fourteen Stage Model of …

 

 

TRANS-
TRANS-
FOR MATION
FOR MATION

FOR OUR CUSTOMERS

ANNUAL REPORT

20202020

KEY
FIGURES

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Total shareholders’ equity and liabilities

Cash and cash equivalents

Sales and profit

Total sales

Operating profit

Operating profit margin

Net income

Return on sales

Operating cash flow

Balance sheet

Shareholders’ equity

Equity ratio

Return on equity

Capital expenditures

Workforce

Workforce (average)

Personnel costs

Per employee

Sales per employee

Per share

Earnings

Dividend

1 Subject to the approval of the Supervisory Board and the Annual General Meeting

All percentages in this Annual Report were derived on the basis of amounts in thousands of euros.
Rounding differences might result from their presentation in millions of euros.

2020

2019

Change

618,665

45,296

7.3 %

31,591

5.1

59,191

661,845

122,883

391,734

59.2

8.1

3,315

217,064

65

187

3.20

1.60 1

632,865

– 2.2 %

65,152

10.3 %

48,357

– 30.5 %

– 3.0 Pp

– 34.7 %

7.6

– 2.5 Pp

65,380

– 9.5 %

393,445

– 0.4 %

659,575

111,980

59.6

12.3

3,253

211,008

65

195

4.90

1.25

0.3 %

9.7 %

– 0.4 Pp

– 4.2 Pp

– 12.8 %

1.9 %

2.9 %

0.0 %

– 4.1 %

– 34.7 %

28.0 %

30,441

34,914

K €

K €

K €

%

%

K €

K €

K €

K €

%

%

K €

K €

K €

K €

€

€

CORPO-
RATE
PROFILE

ESTABLISHED

1890 1890

WORKFORCE
worldwide

PURPOSE OF THE
COMPANY

To develop, manufacture
and market components
and systems for vacuum
generation, measurement
and analysis as well as
helium leak detectors

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Pfeiffer Vacuum – a name that stands for innovative solu-
tions, high technology and dependable products, along
with first-class service. For more than 130 years we have
been setting standards in vacuum technology with these
attributes. One very special milestone was the invention of
the turbopump at our Company more than 50 years ago.
Thanks to our know-how, we continue to be the technology
and world market leader in this field. To no small degree, this
also manifests itself in our strong profitability. Our extensive
line of solutions, products and services ranges from vacuum
pumps, measurement and analysis equipment as well as
leak detectors right through to complex vacuum systems.
And quality always plays a key role in this connection:
Products from Pfeiffer Vacuum are constantly being opti-
mized through close collaboration with customers from a
wide variety of industries, through ongoing development
work and through the exceptional enthusiasm and commit-
ment of our people. These are virtues that we will continue
to embrace!

3,309 3,309

MANUFACTURING
SITES
• Asslar, Germany
• Dresden, Germany
• Göttingen, Germany
• Annecy, France
• Asan, Republic of Korea
• Wuxi, China
• Cluj, Romania
• Indianapolis, USA
• Yreka, USA
• Ho Chi Minh City,

Vietnam

HEADQUARTERS
Asslar, Germany

11
TO OUR SHAREHOLDERS

22
COMBINED
MANAGEMENT REPORT

33
CONSOLIDATED
FINANCIAL STATEMENTS

44
FURTHER INFORMA TION

027 The Year 2020 at a Glance

103 Consolidated Statements of Income

170 Addresses Worldwide

006 Management Board

007 Letter from the CEO

010 Supervisory Board

011

Report of the Supervisory Board
on the 2020 Fiscal Year

019 Product Portfolio

020 Vacuum Solutions

022 Share Performance

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029 The Pfeiffer Vacuum Group

029 Corporate Profile

032 Company Strategy

033 Management System

034 Group Structure

036 Research and Development

037 Business Report

037 Overall Economic and

Industry-specific Development

038 Course of Business

039 Profitability, Financial Position,

and Liquidity

050 Pfeiffer Vacuum Technology AG –
Short Version in Accordance with
German Commercial Code (“HGB”)

054 Non-Financial Consolidated Statement 2020

055 Legal Framework of the Non-Financial

Consolidated Statement

058 Environmental Concerns

063 Respect for Human Rights

064 Responsibility for Employees

070 Combating Corruption and Bribery

072 Risk and Opportunities Report

072 Assessment of the Management Board
of overall Risks and Opportunities

072 Risk and Opportunity Management

System

074 Explanation of Risks and Opportunities

081 Miscellaneous

082 Subsequent Events

083 Outlook

087 Other Information

088 Declaration on Corporate Governance

097 Compensation Report

172 Glossary

174 GRI-Content-Index

183 Financial Calendar 2021

184 Contacts and Imprint

104 Consolidated Statements of
Comprehensive Income

105 Consolidated Balance Sheets

107 Consolidated Statements
of Shareholders’ Equity

108 Consolidated Statements of Cash Flows

110

Notes to the
Consolidated Financial Statements

157

Certification of
Legal Representatives 2020

158 Independent Auditor’s Report

165 Independent Practitioner’s Report

on a Limited Assurance Engagement
on Non-financial Reporting

167

Consolidated Statements of Income

6-Year-Overview

The following symbols will lead you
to further interesting information:

You will find more information
online. They are not part of the
audited Combined Management
Report and the audited Consoli-
dated Financial Statements.

Additional information on this
topic can be found within this
report
These links and references were
inserted for better understand-
ing. They are not part of the
audited Combined Management
Report and the audited Consoli-
dated Financial Statements.

We publish our complete Annual
Report exclusively in digital format as
a PDF. For further information please
also refer to

Transformation Microsite

11TO OUR SHAREHOLDERS
11TO OUR SHAREHOLDERS

22COMBINED MANAGEMENT REPORT

33CONSOLIDATED FINANCIAL STATEMENTS

44FURTHER INFORMATION
44FURTHER INFORMATION

006 Management Board

007 Letter from the CEO

010 Supervisory Board

011

Report of the Supervisory Board
on the 2020 Fiscal Year

019 Product Portfolio

020 Vacuum Solutions

022 Share Performance

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TO OUR
SHARE-

HOLDERS1

33CONSOLIDATED FINANCIAL STATEMENTS22COMBINED MANAGEMENT REPORT 11TO OUR SHAREHOLDERS

Management Board

22COMBINED MANAGEMENT REPORT

33CONSOLIDATED FINANCIAL STATEMENTS

44FURTHER INFORMATION

MANAGEMENT
BOARD

Pfeiffer Vacuum has just
completed a solid year, also
because we mastered the
Corona pandemic well. We
are convinced of Pfeiffer
Vacuum’s potential and
hope that you will accom-
pany us on our way to sus-
tainable growth.

Dr. Britta Giesen
CEO, acting CFO & CTO

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Dr. Britta Giesen
CEO

CV

Wolfgang Ehrk
COO

CV

22ZUSAMMENGEFASSTER LAGEBERICHT33CONSOLIDATED FINANCIAL STATEMENTS44FURTHER INFORMATION Letter from the CEO

LETTER
FROM THE
CEO

Video message of the CEO

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Pfeiffer Vacuum Technology AG just completed a solid year.
I come to this conclusion not only because we were able
to maintain virtually steady sales and even increase our
new order intake over the previous year despite adverse
conditions. I believe this because we were able to achieve
our two most important goals – to protect the health of
our employees and to reliably serve our customers.

We are proud that, due to the protective measures we put
in place, during the outbreak of the pandemic, not a single
employee has been infected with Covid-19 in 2020, at his
or her workplace at Pfeiffer Vacuum. The immediate and
prudent action of our global teams was the basis for effec-
tively protecting the health of all our employees at our
locations around the world. Of course, our employees them-
selves also played a significant role in this by supporting
our mobile working and hygiene concepts.

This provided the basis to also achieve our second goal –
to supply our customers with the products they ordered
and to provide them with the agreed services at virtually
all times. We were even able to improve our delivery reli-
ability compared to previous years. We have thus further
strengthened our position as a reliable partner to our
customers and confirmed our excellent reputation in
the industry. This highlights the advantage of our global
positioning.

When the Corona pandemic started in Asia, and then
spread across Europe and spilled over to North America,
the specific regulations put in place by the various coun-
tries impacted us at deferred times due to our regional
diversification, so that the overall value chain remained
functional even in the face of local restrictions.

Our broad positioning in diverse markets once again had
a stabilizing effect on our sales performance. While the
semiconductor market in 2020 was characterized by a
markedly high demand and the research & development
market recovered late in 2020, performance in our other
industry, analytics and coating markets declined. We were
able to achieve sales of € 618.7 million overall. Compared
to the previous year of 2019, this corresponds to a decline
of 2.2 percent.

We believe that Pfeiffer Vacuum has coped well with the
crisis year 2020 overall in view of the global recession. We
view the decline in sales as being comparatively moderate.
Our order intake developed gratifyingly positive and, at
more than € 631 million for the full year, lay some 5.4 per-
cent over the previous year’s level.

Adversely, negative economies of scale, impairment losses
and special expenses in connection with the Corona pan-
demic – including those related to operational hygiene
concepts or higher transportation costs – as well as a
weakening US dollar and Korean won in the course of the
year negatively impacted our operating result. Compared
to the previous year, this result declined by € 20 million
to € 45.3 million in 2020, resulting in an EBIT margin of
7.3 percent. Although this figure is below the previous year’s
level, it is still within the latest forecast.

11TO OUR SHAREHOLDERS22COMBINED MANAGEMENT REPORT33CONSOLIDATED FINANCIAL STATEMENTS44FURTHER INFORMATION Letter from the CEO

Our aim is to remain
a leader in the fields
of technology and
quality and to continue
to set standards
in these areas in the
vacuum industry.

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Dear shareholders, the result achieved is also characterized
by the investments in the future we have made in the
course of implementing our growth strategy. In doing this,
we have exercised the necessary sense of proportion –
particularly so in view of the economic environment – and
predominantly invested in modernization measures and
capacity expansions as well as in replacement investments
totaling around € 30.4 million. Due to the Corona pandemic,
we deliberately did not fully utilize the originally envisioned
investment framework.

Our aim is to remain a leader in technology and quality
and to continue to set standards in the vacuum industry in
these areas. At this point, let me mention just a few select-
ed examples of new product lines: We started with our
new product line HiScroll, which has several applications
due to its technical characteristics. With Hena 50 and 70,
two new types of rotary vane pumps followed. We also
also introduced the innovative leak detector ASM 306 S
as well as the two portable benchtop units OmniStar and
ThermoStar. Our HiLobe series, which was expanded in
fall, offers intelligent, high-performance rotary vane pumps
for applications in the low and medium vacuum range. At
the end of the year, we presented two new HiPace turbo-
pumps with high performance and minimal weight as well
as space requirements. They are used in virtually every one
of our customer markets – from semiconductor technology
to research & development and industry.

I am particularly pleased that we are able to demonstrate
our technological leadership in a renowned research
institution. The Technical University of Darmstadt has
ordered an ion beam system from our Dresden subsidiary
Dreebit. With this ion beam system, we are supporting the
researchers with their work in the field of atomic, nuclear
and particle physics.

The cooperation with our main shareholder, the Busch
Group, which has a complementary product portfolio to
ours, also contributes to a good position in the competitive
environment. We are working hard to realize synergies in
the areas of purchasing, sales and service, research &
development and IT. Last year, we created a joint global
purchasing organization, which gives us a much stronger
bargaining power. This enables us to negotiate better
terms with our business partners.

In addition, we succeeded in introducing groupwide
standards during the reporting period. This includes, for
example, the area of compliance, where we have trans-
lated a uniform code of conduct into twelve languages
and established it at all locations. For prevention and
clarification of possible violations, we introduced a group-
wide, web-based whistleblower system for anonymous
reporting of violations. This whistleblower system can
be used by employees as well as external actors. In addi-
tion, we have established our data protection guidelines
throughout the Group and have also conducted training
in this respect.

11TO OUR SHAREHOLDERS22COMBINED MANAGEMENT REPORT33CONSOLIDATED FINANCIAL STATEMENTS44FURTHER INFORMATION