Annual Results Press Conference 8 March Alexander Hagemann (CEO) & Patric Schoch (CFO)

Transcription

1 Press Conference 8 March 2018 Alexander Hagemann (CEO) & Patric Schoch (CFO)

2 Disclaimer 8 March 2018 The information in this presentation does not constitute an offer or invitation and may not be construed as a recommendation by us to purchase, hold or sell shares of Cicor Technologies Ltd. This information or any copy thereof may not be sent or taken to or distributed in any jurisdiction in which such transmission or distribution is unlawful. This document may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. 2

3 Alexander Hagemann Group Profile 3

4 The Cicor Group Your Technology Partner At a glance Engineering and manufacturing partner for advanced electronics Developing synergies between our businesses AMS Division: A leader in substrate technologies and microelectronics ES Division: Electronic Design & Manufacturing Services, from engineering to production and after-sales Milestones 1966: Founded as manufacturer of Printed Circuit Boards (PCB) 1998: Listed on the Swiss Stock Exchange 2005: Acquisition of Electronic Manufacturing Service (EMS) businesses 2007: Acquisition of Microelectronics activities 2008: Acquisition of Asia EMS activities 2016: Restructuring of Swiss operations and establishment of an integrated and lean organization 10 production sites in Europe and Asia with about 1,900 employees 4

5 Leading technologies for growth markets A synergistic offering of products and services AMS Division ES Division Hybrids & microelectronics Printed circuit boards (PCB) Electronic manufacturing services (EMS) High precision electronic substrates using a wide variety of materials and deposition processes High precision assembly and packaging of bare semiconductors and miniaturized electronic components High-density and ultrahigh-density PCB for miniaturized circuits and sophisticated applications Engineering of advanced electronics PCB assembly, system assembly and box building Value-added services of plastic injection molding and toolmaking 5

6 Global positioning and proximity to customers Cicor s global footprint is a key to success 6

7 Addressing growth markets Cicor is manufacturing partner of choice for leading hearing aid OEM Hearing aid market grows 8% annually by volume with ASP decreasing 3% Market drivers support outsourcing Cicor already realizes 10% of group revenues with the hearing aid industry Synergistic offerings are recognized by OEM Printed circuit boards (PCB) Microelectronic assembly Assembly services 3D-MID substrates Plastic injection molding Toolmaking Assembly of charging devices 7

8 A broad customer base of industry leaders Selected customers in focus markets 8

9 Alexander Hagemann Cicor in 2017: Back on track towards profitable growth 9

10 Cicor in 2017 Back on track towards profitable growth Results of growth initiatives exceed expectations Restructuring of the Cicor group is showing its effects on operating profits Clear turnaround of the AMS Division Continued growth of the ES Division Heading into 2018 with a book-to-bill ratio significantly above 1 10

11 Strategic industries, North America drives growth Focus on markets with high technology and quality requirements Share of sales to strategic industries of Industrial, Medical, Aerospace & Defence increased to 74.3% (2016: 70.8%) Recovery of Watches & Consumer segment: Increased customer demand and entrance into smart-watches Focus on penetrating North America led to 56% sales growth to CHF 19.7 million (2016: CHF 12.7 million) Strengthening of AMS sales organization in Asia supported growth Customers switching point of purchase from Europe to Asia led to increased share of Asia sales 11

12 [CHF million] Strong turnaround of the AMS Division Returning to growth and confirming the margin potential 23.6% sales growth to CHF 53 million Sales per employee up by almost 30% Lower material cost ratio from improved process efficiency Overhead cost reduction EBIT turnaround to CHF 4.2 million (2016: CHF -2.4 million) Investments into process capabilities and productivity DenciTec projects continue, significant sales expected mid-term Division Sales H2 H1 Division EBITDA Margin 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 13.1% 13.3% 1.3% 5.2% 15.9%

13 [CHF million] Continued growth of the ES Division Hitting record sales figures again in % growth to CHF million: New projects and a strong market Overhead cost reduction and an 11% increase in labor productivity Pressure from high capacity utilization and component shortage EBIT increased 20.6% to CHF 9.0 million (2016: CHF 7.5 million) New cleanrooms for medical products set up in Bronschhofen (Switzerland) and Batam (Indonesia) Construction of new factory in Arad (Romania) proceeds according plan Division Sales Division EBITDA Margin H2 H1 12% 10% 8% 6% 4% 2% 0% 9.6% 8.2% 9.1% 6.8% 7.7%

14 Progress in the transformation of Cicor Review 2017 Cicor has become more agile with a flatter organization and leaner overhead structures A strengthened worldwide sales organization of the AMS Division to drive further growth Operational excellence measures led to 13% improved sales per employee Arad (Romania) factory construction proceeds to schedule 14

15 Patric Schoch Financial Results

16 Financial achievements 2017 All figures in CHF million at actual FX rates Orders received Net sales EBIT EBITDA Net profit +5.4% +67.8% +14.4% % (ROS) % 6.1% 8.9% 0.1% % Growth in net sales of 13.5% in local currencies Book-to-bill ratio of 1.09 in

17 EBITDA Net Sales Half-year results All figures in CHF million at actual FX rates +17.3% 1st half-year 2nd half-year +11.5% % %

18 in CHF million Net Profit development 2017 vs (>100%) % 2 ROS: 0.1% Margin change Overhead and others Depr. & Amort. Financial result Tax expenses

19 Capex and depreciation for PPE* Lower Capex / Depreciation ratio PPE Capex in TCHF PPE Depreciation in TCHF Capex / Depreciation ratio Land Arad Average = Mid-term Target Corridor Excl. Land Arad * PPE = Property, Plant and Equipment 19

20 Consolidated income statement in TCHF Actual 2016 in % Actual 2017 in % %YoY Net sales Material expenses Operating expenses Restructuring Depreciation and amortization EBIT Financial result EBT Income taxes Net profit / (loss) NM 20

21 Consolidated Balance Sheet in TCHF Actual 2016 in % Actual 2017 in % Current assets Non-current assets Total assets Current liabilities Non-current liabilities Equity Total liabilities and equity Net Debt Gearing ratio (net debt in % of equity) Net debt / EBITDA bef. Restruction Equity Ratio 38.5% 40.7% 21

22 Cash Flow Statement in TCHF Actual 2016 Actual 2017 Profit / (Loss) before tax Non cash items Changes in working capital* Interest, tax paid / received Cash flow from operations Property, plant and equipment (net) Intangible assets Cash flow from investments Free Cash Flow Net cash from / (used) in fin.act Currency translation effects Cash flow * Working capital including other current assets and other current liabilities 22

23 Alexander Hagemann Summary and Outlook

24 Distribution of earnings 2017 Cicor has achieved reasonable Net Profit and Free Cash Flow results The balance sheet is healthy with an equity ratio of 40.7% Net debt to EBITDA leverage is low at 1.02 Capital spending for equipment and the new Arad (Romania) factory is secured from operating cash flows and new loan agreement The Board of Directors therefore will propose a tax free distribution from capital contribution reserves of CHF 0.70 per share to the Annual Shareholders Meeting on April 19,

25 Outlook Expectations for 2018 Continued momentum from 2017 book-to-bill ratio of 1.09 and H2 order intake of CHF million First weeks of 2018 were a strong start into the new year Operational excellence measures and leverage from increased utilization of AMS Division factories to support operating profits Cost pressure from component markets and wage increases together with cost to move Romania production are limiting the upside potential of operating margins in the ES Division Cicor expects mid-single digit sales growth and operating margins increasing approximately 0.5 percentage points (If economic conditions and exchange rates remain mostly stable) 25

26 Alexander Hagemann Investor Relations 26

27 Investor Relations Agenda 2018 and contacts Investor Relations Agenda April 19, 2018 August 16, 2018 Interim report 2018 Annual shareholder meeting in Boudry NE Investor Relations Contacts Cicor Management AG Patric Schoch (CFO) and Alexander Hagemann (CEO) Gebenloostrasse Bronschhofen, Switzerland Phone:

28 Thank you for your attention.