Cicor Group Press Conference March 20th, 2013 Antoine Kohler (Chairman), Patric Schoch (CFO) I 1
Disclaimer 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. I 2
Press conference Agenda!! Profile!! Achievements 2012!! Financials 2012!! Operational Excellence!! Outlook!! Q & A I 3
Antoine Kohler Profile I 4
Profile The Cicor Group!! Global acting Swiss group of leading!! PCB (Printed Circuit Boards)!! Microelectronics and!! Electronic Solutions (Electronic Manufacturing Services) companies!! CHF 180 200 million sales set-up!! From engineering and prototyping to high volume production!! 11 production sites in Europe and Asia with over 1500 employees!! Sales organization in Europe, America, Asia!! Listed on the SIX Swiss Exchange: CICN Net Sales in CHF million 2012 176,0 2011 178,7 2010 183,0 2009 160,1 2008 208,4 Net Profit in CHF million 2012 6,3 2011-2,4 2010 0,1 2009-7,7 2008-21,6 I 5
Profile Board of Directors / Group Management Board of Directors Antoine Kohler Chairman Heinrich Essing Vice Chairman Robert Demuth Andreas Dill Group Management Patric Schoch acting CEO / CFO Pascal Keller Executive Vice President PCB Division Heinz Gloor Executive Vice President ME Division Erich Trinkler Executive Vice President ES Division Gim Hong Sng Executive Vice President ASIA Division I 6
Profile Shareholding!"#$%"&'(%$)*+$,-+,$%!"#$%&"'"()%*+'"%,-./0-1,1 2'"+%3'4)%*+'"% ))))))))))))))))))))5-677) 89"'+#"):3;<"')=>)%*+'"%)=3&%&+:($:#,-./7-/?0 @A&$=:%)"B"'C$%"()$:),75, 57-677 @3&%&+:($:#)=A&$=:%)+%)+&)D5E5,E,75, 06-/?6!"#$%"&'(./0 HEB 29,49% Escatec 4,90% Caceis 3,08% Free float 62,55% JMN M%C+&"C I+C"$% K'"")>H=+& F+'G"&)C+A$&+H$%+&$=:)+%)+&)D5E5,E,75, );IJK).DL1 I 7
Profile Cicor s global footprint I 8
Profile Cicor business model Market observations!! Outsourcing trend is ongoing!! Search for best price manufacturing ongoing!! Need for box built ongoing Cicor business model!! Original Design Manufacturer (ODM) and Contract Manufacturer (CM)!! Unique combination!! Focus on medium to high-end segments I 9
Profile Diversified customer portfolio Medical Watches & Consumer Testing Industrial Aerospace & Defence Communication Automotive & Transport Others Press Conference I 20.03.2013 I 10
Profile Summary!! Swiss based international group!! Global footprint!! High level of technological competence!! Well balanced customer portfolio!! Well suited business model!! Experienced management team I 11
Patric Schoch Achievements 2012 I 12
Achievements 2012 (1/2) Group highlights!! Higher margins with slightly lower sales!! Revenue of CHF 176,0 million; reflecting a decrease of 1,5% vs. 2011!! Asia division with strongest sales growth!! EBIT margin increased to 4,1% due to efficiency gains and reduction of low margin sales!! Net profit increased to CHF 6,3 million!! Investments into future growth!! Considerable investments into capacity and equipment!! Solid equity situation!! Equity ratio of 56,5%!! Earnings per share (EPS) of CHF 2,32; proposed pay-out of CHF 0,30 from capital contribution reserves / 13% pay-out ratio on EPS I 13
Achievements 2012 (2/2) Divisional highlights!! Improvements in profitability!! Successful closing of Unterägeri and integration into existing PCB organization. Reduction of low margin sales and improvements in capacity utilization!! Stopped the EBIT loss at ME in HY2, basically achieving break-even for HY2!! Consistent cost adjustments!! Adapted overhead structure where necessary, also at Corporate level!! Capacity extension in Asia!! Expansion in Indonesia and Vietnam with existing customer demand and orders in hand I 14
Patric Schoch Financials 2012 I 15
Financial Summary 2012 Strong HY2 confirms upwards trend!! Positive trend continued in HY2 2012!! Regained momentum in sales growth in HY2!! Won important projects with key customers!! EBIT margin of 4,1% for 2012 (5,2% for HY2)!! No material impact from currency deviations!! Strong increase of net profit!! CHF 6,3 million net profit!! Focus on cash flow!! Strong decrease in net working capital in HY2 despite sales growth in the same period!! Only small negative cash-flow despite large capex I 16
Sales profile Sales by industries and by destination 2012 Watches & consumer 20% Other 6% Aerospace & defence 11% Communication 13% 2012 North America Other Asia 5% 7% 2% 49% Switzerland Automotive & transport 8% 19% 23% Industrial Europe (w/o Switzerland) 36% Medical 2011 Watches & consumer 16% Other 5% Aerospace & defence 10% Communication 14% 2011 North America Other Asia 4% 4% 4% Automotive & transport 8% 23% Europe (w/o Switzerland) 35% 53% Switzerland 23% Industrial Medical I 17
Financial achievements 2012 Net sales EBIT* EBITDA* Net profit* (before minorities) +52% -1,5% 15,2 178,7 176,0 >100% 10,0 >100% 2,3 1,3% 7,2 4,1% (of sales) 5,6% 8,7% 2,2 1,3% 6,3 3,6% 2011 2012 2011 2012 2011 2012 2011 2012 *all figures before restructuring (all figures in CHF mio at actual FX rates) I 18
Group half-year development 2012 Net sales 176,0 EBIT 7,2 +90,0% 4,7 +8,6% 84,4 91,6-1,5% 4,1% Actual 2011 Growth: -10,8% +9,0% Actual 2011 (bef. restructuring) 2,5 ROS: 3,0% 5,2% HY1 HY2 Total HY1* HY2 Total (all figures in CHF mio at actual FX rates) * HY1 2012 including 305 TCHF gain on sale of assets Unterägeri. I 19
Net Profit development 2012 8 7 6 +2,6 +4,0 (+181,0%) -0,3 +0,6-1,5 +6,3 in CHF million 5 4 3 2 1 0 +2,2 ROS: 1,3% 2011 (bef. Restr.) +2,7 Margin improvement Overhead and others Depr. & Amort. Financial result Tax expenses ROS: 3,6% 2012 I 20
Divisional Performance 2012 Operational improvements PCB in TCHF Total Sales FY 2011 FY 2012 Change 36 312 32 991-9,1% ME in TCHF Total Sales FY 2011 FY 2012 Change 28 707 30 291 +5,5% 2012 sales by division Asia PCB 15% 19% EBIT -5 068* 2 968 >100% EBIT -32-1 290-17% ME ROS% NA 9,0% FTE** 149 117-32 ROS% NA NA FTE** 158 158 0 ES 50% ES in TCHF Total Sales FY 2011 FY 2012 Change 94 896 87 815-7,5% Asia in TCHF Total Sales FY 2011 FY 2012 Change 19 854 26 330 +32,6% 2011 sales by division Asia PCB 11% 20% EBIT 4 049 5 461 +34,9% EBIT 1 073 1 935 +80,3% ROS% 4,3% 6,2% ROS% 5,4% 7,4% 16% ME FTE** 512 556 +44 FTE** 545 676 +131 ES 53% * EBIT before restructuring -417 TCHF ** Number of FTE I 21
Consolidated income statement in TCHF Actual 2011 in % Actual 2012 in % %YoY Net sales 178 678 100,0% 176 016 100,0% -1,5% Material expenses -86 898-48,6% -86 284-49,0% -0,7% Operating expenses -81 773-45,8% -74 486-42,3% -8,9% Depreciation and amortization -7 689-4,3% -8 022-4,6% 4,3% EBIT bef. restructuring costs 2 318 1,3% 7 224 4,1% >100% Restructuring costs -4 651-2,6% 0 0,0% EBIT -2 333-1,3% 7 224 4,1% >100% Financial result -2 617-1,5% -2 041-1,2% -22,0% Income taxes 2 534 1,4% 1 081 0,6% -57,3% Net profit / (loss) -2 416-1,4% 6 264 3,6% >100% Net profit / (loss) bef. restruct. 2 235 1,3% 6 264 3,6% >100% I 22
Consolidated Balance Sheet in TCHF Actual 2011 in % Actual 2012 in % Current assets 81 967 40,5% 82 207 38,8% Non-current assets 120 481 59,5% 129 400 61,2% Total Assets 202 448 100,0% 211 607 100,0% Current liabilities 55 669 27,5% 39 419 18,6% Non-current liabilities 27 175 13,4% 52 552 24,8% Equity 119 604 59,1% 119 636 56,5% Total liabilities and equity 202 448 100,0% 211 607 100,0% Net Debt 14 013 16 257 Gearing ratio (net debt in % of equity) 11,7% 13,6% Net debt / EBITDA 1,4 1,1 Equity Ratio 59,1% 56,5% I 23
Free Cash Flow Statement in TCHF Actual 2011 Actual 2012 Profit / (Loss) before tax -4 950 5 183 Non cash items 11 911 9 489 Changes in working capital* 6 804-5 016 Interest, tax paid / received -2 396-2 324 Cash flow from operations 11 369 7 332 Property, plant and equipm. (net) -7 597-8 655 Intangible assets -575-71 Cash flow from investments -8 172-8 726 Free cash flow 3 197-1 394 in % of net sales 1,8% -0,8% * Working capital including other current assets and other current liabilities I 24
Net Working Capital in TCHF Actual 2011 in % Actual 2012 in % Inventories 33 805 86,0% 35 229 86,4% Trade Receivables 23 419 59,6% 26 007 63,8% Trade Payables -17 927-45,6% -20 470-50,2% Net Working Capital 39 297 100,0% 40 766 100,0% in % of net sales 22,0% 23,2% I 25
Capex and depreciation for PPE* Considerably higher investment for future growth PPE Capex in TCHF PPE Depreciation in TCHF Capex / depreciation ratio 13!168 CHF 3 mio for Land & Building CHF 9 mio for Machinery 2,0 1,8 Average 2009 2012 = 1,1 1,9 8!033 8!452 1,6 4!268 5!908 7!059 6!592 6!820 1,4 1,2 1,0 Mid-term Target Corridor 1,2 0,8 0,8 2009 2010 2011 2012 2009 2010 2011 2012 0,6 0,5 0,4 2009 2010 2011 2012 * PPE = Property, Plant and Equipment I 26
Patric Schoch Operational Excellence I 27
Operational Excellence Basis for sustainable improvement of performance!! Strong cost control and awareness!! Innovation and optimization!! Proven technological expertise!! Cost effectiveness!! Production flexibility!! Investments into capabilities, capacities and - last but not least - people I 28
Operational Excellence PCB Division: Focus on core competencies I 29
Operational Excellence ME Division: Lean and optimized processes I 30
Operational Excellence ES Division: Proximity, flexibility, quality, price I 31
Operational Excellence ASIA Division: Cost efficient manufacturing I 32
Operational Excellence Successful reduction of BES* in 2012 Net sales in MCHF Development 2010-2012 Development HY1 HY2 2012 183,0 178,7 176,0 2010 2011 2012 +1 mio -12 mio -6% BES 2012 BES HY2 Break Even Sales in CHF million Break Even Sales in CHF million 2010 2011 2012 All figures excluding restructuring and impairment HY1 *Definition of Break Even Sales: Total fix cost HY2 %Contribution Margin 1 I 33
Patric Schoch Outlook I 34
Outlook (1/2) 2012 as the basis for sustainable positive results!! Group Management expects a return to growth during the 2013 financial year and a consolidation of the profitability levels achieved in 2012.!! Signed frame contracts and existing customer orders build basis for return to sales growth.!! Global sales and distribution network to maintain a presence in every key market and region.!! The achieved and implemented operational improvements in 2012 will allow a sustainable profitability level of the Group going forward.!! The aim is for a clear, systematic and consistent leadership throughout the Group to make sure that issues are being addressed immediately and constantly, always. I 35
Outlook (2/2) Triad strategy is still valid!! Growth regions!! Europe, Asia, Americas!! Growth markets!! Medical, Automotive, Industries!! Technology hubs!! Switzerland, Germany, Singapore!! Innovation!! 3D-MID Technology!! Miniaturisation!! Maximizing sales opportunities!! Strong sales network I 36
New Cicor Investor Relations website http://annualreport.cicor.com I 37
Questions / Answers I 38
Investor Relations Agenda 2013 and contacts IR Agenda 2013 24 April 2013 Annual General Meeting 21 August 2013 Half-year results 2013 March 2014 Annual report 2013 Investor Relations Contacts Cicor Management AG Antoine Kohler, Chairman, and Patric Schoch, CFO WTC, Leutschenbachstrasse 95 8050 Zurich, Switzerland Phone: +41 43 811 44 05 I 39
Thank you! I 40