Huber + Suhner Ag · SIX:HUBN
Huber + Suhner — H1 2023 Earnings Presentation
34 slides from Huber + Suhner's earnings presentation, Aug 15, 2023
Slide 1: HUBER+SUHNER
HUBER+SUHNER
Slide 2: 2023 half-year results
2023 half-year results 15 August 2023 | 2023 half-year media and analysts' webcast 2
Slide 3: Agenda
Agenda Overview 1st half-year 2023 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2023 Urs Ryffel (CEO) Q&A Financial calendar 15 August 2023 | 2023 half-year media and analysts' webcast 3
Slide 4: Net sales maintained at prior-year level with lower profitability
Net sales maintained at prior-year level with lower profitability MCHF Heterogeneous development during first six months • Order intake negatively impacted by overstocked H1/2023 H1/2022 Δ% customer inventories across many end markets and communication market in a downward cycle Order intake 453.3 4
Slide 5: Industry segment
Industry segment Further net sales increase with sustained high profitability MCHF Key aspects • Growth initiative aerospace and defense with H1/2023 H1/2022 Δ% significant increase in orders and sales Order intake 148.6 157.6 (5.7) • Test and measurement fell short compared to previous year as a re
Slide 6: Communication segment
Communication segment Significant drop in sales and profitability MCHF Key aspects • The end of 5G rollouts in North America (NAM), which had H1/2023 H1/2022 Δ% contributed substantially to the past two years, caused a material decline in orders and revenue Order intake 148.1 193.1 (23.3) • The nega
Slide 7: Transportation segment
Transportation segment Successful turnaround, double-digit operating profit margin MCHF Key aspects • Growing order intake, net sales and a substantially H1/2023 H1/2022 Δ% improved EBIT margin Order intake 156.6 147.7 6.1 • Automotive subsegment confirmed growth path after first six months Net sale
Slide 8: Net sales by market segment
Net sales by market segment Industry and Transportation offset decline in Communication MCHF 250 200 31% (13.8 %) 33% 10.1 % 9.2 % 150 H1/2023 100 50 36% 0 Industry Communication Transportation Industry H1/2022 Communication H1/2023 Transportation 15 August 2023 | 2023 half-year media and analysts'
Slide 9: Net sales by technologies
Net sales by technologies High increase in low frequency reflects growth in Industry and Transportation MCHF 250 200 15 % (15 %) 37% 28% 150 6% H1/2023 100 50 35% 0 RF FO LF Radio frequency H1/2022 Fiber optics H1/2023 Low frequency 15 August 2023 | 2023 half-year media and analysts' webcast 9
Slide 10: Net sales by region
Net sales by region Broad resurgence of Asia-Pacific, decline in Americas related to Communication MCHF 300 0.8 % 250 27% 200 150 H1/2023 54% 33.0 % 100 (27.2 %) 19% 50 0 EMEA (incl. CH) Americas Asia-Pacific EMEA (incl. CH) H1/2022 Americas H1/2023 Asia-Pacific 15 August 2023 | 2023 half-year media
Slide 11: Agenda
Agenda Overview 1st half-year 2023 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2023 Urs Ryffel (CEO) Q&A Financial calendar 15 August 2023 | 2023 half-year media and analysts' webcast 11
Slide 12: Factors impacting order intake
Factors impacting order intake Decline in Communication business, adverse FX, Transportation with double digit growth MCHF 500 Industry Communication Transportation - 4.4 MCHF - 2.8 % + 20.2 MCHF + 13.7 % - 45.0 MCHF - 9.0 % - 36.3 MCHF 450 498.4 - 18.8 % Organic development Currency, portfolio & co
Slide 13: Factors impacting net sales
Factors impacting net sales 5.4 % organic growth supported by two market segments MCHF 550 Transportation Industry Communication 500 - 0.1 MCHF - 0.0 % + 20.3 MCHF - 17.6 MCHF + 23.2 MCHF + 14.0 % - 8.9 % + 17.1 % 450 477.4 477.3 Organic growth Currency, portfolio & copper + 25.9 MCHF - 26.0 MCHF +
Slide 14: Gross margin
Gross margin Reduced level due to capacity ramp-down costs and excess own inventory MCHF 200 40% 39.7% 38% 150 36.7% 36.5% 36% 100 34.8% 34.9% 34% 50 32% 169 161 174 166 167 0 30% H1/21 H2/21 H1/22 H2/22 H1/23 Gross profit Gross margin 15 August 2023 | 2023 half-year media and analysts' webcast 14
Slide 15: Operating expenses
Operating expenses Costs managed on a constant percentage level MCHF 160 30% 27.4% 24.9% 25.5% 25.3% 24.8% 117 122 118 121 120 109 27 22 29 20% 30 20 80 30 29 29 29 27 10% 40 60 61 65 67 62 0 0% H1/21 H2/21 H1/22 H2/22 H1/23 S&M R&D Admin in % of net sales 15 August 2023 | 2023 half-year media and a
Slide 16: EBIT by market segment
EBIT by market segment Industry strong, Communication not satisfactory, Transportation with turnaround MCHF H1/2023 in % H1/2022 in % Industry 30.2 18.9 28.7 19.8 Communication 6.2 3.7 24.8 12.6 Transportation 15.5 10.5 4.7 3.4 Corporate (4.9) (4.2) Total EBIT 47.0 9.8 54.0 11.3 15 August 2023 | 202
Slide 17: Currency situation 2023
Currency situation 2023 CHF appreciated strongly against all relevant currencies 30.06.2023 vs. 31.12.2022 Ø H1/2023 vs. Ø H1/2022 FX / CHF 5% 4.6% 1.5% 0% -0.4% -3.1% -3.5% -2.7% -3.4% -5% -4.0% -5.6% -6.8% -7.5% -10% -9.5% -10.0% -9.8% -15% EUR USD RMB GBP AUD INR PLN Ø H1/2023 0.99 0.91 0.131 1.1
Slide 18: Financial result
Financial result Higher hedging costs led to increased negative FX impact MCHF 1 Net currency effects Other financial result (0.6) (1.6) 0 (0.1) (0.5) (1.4) -1 (0.2) -2 H1/22 H1/23 15 August 2023 | 2023 half-year media and analysts' webcast 18
Slide 19: Group tax rate
Group tax rate Favourable country mix and positive contribution from R&D tax benefits 25% 21.0% 20% 18.9% 17.9% 15.8% 15% 10% 5% 0% H1/22 H1/23 Expected tax rate Effective tax rate 15 August 2023 | 2023 half-year media and analysts' webcast 19
Slide 20: Overview balance sheet
Overview balance sheet Solid structure MCHF 30.06.2023 31.12.2022 30.06.2022 Cash and cash equivalent 112 151 (26 %) 146 Other current assets 384 389 (1 %) 391 Non-current assets 287 275 5% 274 Financial liabilities - - - Other liabilities 190 208 (9 %) 206 Equity* 593 607 (2 %) 605 in % 76 % 74 % 7
Slide 21: Overview cash flow
Overview cash flow Significant cash returns to shareholders MCHF H1/23 H1/22 Cash flow from operating activities 31.1 31.3 Cash flow from investing activities (21.5) (25.6) Free operating cash flow 9.6 5.7 Dividend payment (38.8) (38.2) Dividend payment to minorities (0.3) - Change in treasury share
Slide 22: Share buyback
Share buyback Programme successfully completed in % of in % of Amount of shares Ø share price Volume in MCHF registered shares programme target 2021 141,500 83.62 11.8 0.7 % 14.0 % 2022 786,584 80.27 63.1 3.9 % 77.9 % 2023 81,916 78.70 6.4 0.4 % 8.1 % Total number of shares bought 1,010,000 80.61 81
Slide 23: Financial assessment H1/2023
Financial assessment H1/2023 Overall solid operational performance – with mixed development Organic sales growth of 5.4 % Organic order intake decline of 4.1 % Industry and Transportation segments EBIT Communication segment EBIT Tax rate FX development 15 August 2023 | 2023 half-year media and analy
Slide 24: Agenda
Agenda Overview 1st half-year 2023 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2023 Urs Ryffel (CEO) Q&A Financial calendar 15 August 2023 | 2023 half-year media and analysts' webcast 24
Slide 25: Challenging economic environment
Challenging economic environment Tough decisions to be made • Following the normalization of supply chains – required logistics capacities, raw materials and semi-finished products are generally available again – prices have stabilized, albeit at a significantly higher level. • Synergies from global
Slide 26: Market trends in Industry
Market trends in Industry Dynamic markets as such, temporarily impacted by overstocking • Continued high level of quotation activity in most industrial markets not indicative of structural issues. • High inventories across most submarkets prevent customers temporarily from placing new orders. • Smar
Slide 27: Market trends in Communication
Market trends in Communication 2023 proves to be challenging – multiple opportunities ahead – technology is key • Entire communication (connectivity) industry suffers from actual lower demand. • Competition between operators is getting tougher, shifting their focus to savings in capital expenditures
Slide 28: Market trends in Transportation
Market trends in Transportation Fundamentally positive momentum in target applications • The desire to be mobile is back and mobility levels of 2019 can be expected to be surpassed soon. • Urbanisation drives further build-out of public transportation. Substantial investments in rail infrastructure
Slide 29: Outlook 2023
Outlook 2023 Business outlook for 2023 and beyond • Inflationary trends and geopolitical tensions persisted and are likely to shape the economic environment for some time. • In particular, the issue around energy supply and costs will remain a challenge for which it is necessary to prepare. • Strate
Slide 30: Agenda
Agenda Overview 1st half-year 2023 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2023 Urs Ryffel (CEO) Q&A Financial calendar 15 August 2023 | 2023 half-year media and analysts' webcast 30
Slide 31: Q&A
Q&A 15 August 2023 | 2023 half-year media and analysts' webcast 31
Slide 32: Financial calendar
Financial calendar Net sales / Order intake (9 months) 24.10.2023 Net sales / Order intake 2023 23.01.2024 Annual Report 2023 05.03.2024 Media and analysts’ conference 05.03.2024 Annual General Meeting (Rapperswil SG) 27.03.2024 Figures are available online at www.hubersuhner.com/en/company/investor
Slide 33: Connecting – today and beyond
Connecting – today and beyond
Slide 34: Disclaimer
Disclaimer This document is for presentation purposes only. It contains certain forward-looking statements including, but not limited to, those using the words “believes”, “assumes”, “expects” or formulations of a similar kind. Such forward-looking statements are made on the basis of assumptions and