Huber + Suhner Ag · SIX:HUBN
Huber + Suhner — H1 2021 Earnings Presentation
35 slides from Huber + Suhner's earnings presentation, Aug 17, 2021
Slide 1: HUBER+SUHNER
HUBER+SUHNER
Slide 2: Half-year conference 2021
Half-year conference 2021 17 August 2021 | Half-year media and analysts conference 2
Slide 3: Agenda
Agenda Overview 1st half-year 2021 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2021 Urs Ryffel (CEO) Questions and discussion 17 August 2021 | Half-year media and analysts conference 3
Slide 4: Profit doubled in the first half of the year
Profit doubled in the first half of the year Order intake very strong, net sales with significant increase • A more positive global economic environment impacted business in many industries • Positive development at HUBER+SUHNER driven by both a base effect and clear upward trend in most of the targ
Slide 5: Figures at a glance
Figures at a glance MCHF H1/2021 H1/2020 Δ% Order intake 494.2 396.7 24.6 Net sales 424.4 376.7 12.7 Operating profit (EBIT) 51.7 25.1 106.0 as % of net sales 12.2 6.7 Net income 41.9 19.9 110.6 as % of net sales 9.9 5.3 17 August 2021 | Half-year media and analysts conference 5
Slide 6: The three dimensions of our business
The three dimensions of our business P/L P/L P/L Group P/L 17 August 2021 | Half-year media and analysts conference 6
Slide 7: Net sales of MCHF 424.4 – H1/2021 distribution
Net sales of MCHF 424.4 – H1/2021 distribution Distribution by market segment, technology and region by market segment by technology by region 22% 29% 31% 30% 32% 54% 24% 39% 39% Industry Radio Frequency EMEA Communication Fiber Optics Americas Transportation Low Frequency Asia-Pacific 17 August 202
Slide 8: Industry segment
Industry segment Strong growth and high profitability MCHF Key aspects • Favourable environment drove strong H1/2021 H1/2020* Δ% growth in net sales Order intake 153.1 123.5 23.9 • Test and measurement expanded 5G- related testing capacities Net sales 137.0 116.2 18.0 • Aerospace and defense growth
Slide 9: Communication segment
Communication segment Leap to double-digit EBIT margin MCHF Key aspects • Pick up of business for expansion of H1/2021 H1/2020* Δ% mobile networks (Cell Site) of 5G, following lift of pandemic restrictions Order intake 191.4 159.2 20.3 • Significant upward trend in North Net sales 165.6 149.6 10.7 A
Slide 10: Transportation segment
Transportation segment Growth in net sales, EBIT margin at lower end of expectations MCHF Key aspects • Stronger automotive market more than H1/2021 H1/2020* Δ% compensates for lower sales in Railway subsegments Order intake 149.7 114.0 31.3 • Continued hesitancy in awarding of contracts for rolling
Slide 11: Net sales by market segment
Net sales by market segment Significant growth in all three market segments MCHF 250 200 29% 32% +10.7 % 150 +18.0 % +9.8 % H1/2021 100 50 39% 0 Industry Communication Transportation Industry H1/2020 (adjusted) Communication H1/2021 Transportation 17 August 2021 | Half-year media and analysts confer
Slide 12: Net sales by technologies
Net sales by technologies Growth in all three technologies, shares well balanced MCHF 200 +20.3 % 150 31% +12.4 % 30% +4.2 % 100 H1/2021 50 39% 0 RF FO LF RF H1/2020 FO H1/2021 LF 17 August 2021 | Half-year media and analysts conference 12
Slide 13: Net sales by region
Net sales by region Europe consolidates share, followed by Americas and APAC MCHF 250 +10.6 % 22% 200 150 H1/2021 54% +51.6 % -8.0 % 100 24% 50 0 EMEA (incl. CH) Americas Asia-Pacific EMEA (incl. CH) H1/2020 Americas H1/2021 Asia-Pacific 17 August 2021 | Half-year media and analysts conference 13
Slide 14: Agenda
Agenda Overview 1st half-year 2021 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2021 Urs Ryffel (CEO) Questions and discussion 17 August 2021 | Half-year media and analysts conference 14
Slide 15: Factors impacting order intake
Factors impacting order intake MCHF +97.5 MCHF 500 +24.6 % TRA 450 +27.6 MCHF COM +24.2 % +34.0 MCHF IND +21.4 % 400 +30.9 MCHF +25.0 % 494.2 Organic growth Currency & copper 350 +92.5 MCHF +5.0 MCHF 396.7 +23.3 % +1.3 % 300 250 Order intake H1/20 Order intake H1/21 17 August 2021 | Half-year media
Slide 16: Factors impacting net sales
Factors impacting net sales MCHF +47.7 MCHF 450 +12.7 % TRA COM +3.2 MCHF 400 +2.9 % +17.3 MCHF IND +11.6 % +22.2 MCHF +19.1 % 350 424.4 Organic growth Currency & copper 376.7 +42.7 MCHF +5.0 MCHF +11.4 % +1.3 % 300 250 Net sales H1/20 Net sales H1/21 17 August 2021 | Half-year media and analysts co
Slide 17: Gross margin
Gross margin Excellent business mix results in record high gross margin MCHF 180 39.7% 40% 160 140 38% 37.2% 120 36.0% 34.9% 36% 100 34.8% 80 34% 60 40 32% 20 167 133 131 130 169 0 30% H1/19 H2/19 H1/20 H2/20 H1/21 Gross profit Gross margin 17 August 2021 | Half-year media and analysts conference 17
Slide 18: Headwind from the sourcing front
Headwind from the sourcing front Current gross margin level might come under pressure High price increases in • Major challenge due to price increases in the range of 20 – 90 % on chemicals and polymers since beginning of 2021 several relevant • Continuous price increase of industrial metals in the
Slide 19: Operating expenses
Operating expenses Costs driven by higher business activity MCHF 150 28.5% 30% 27.7% 27.4% 27.0% 26.7% 121 117 107* 34 102 100* 100 30 20% 20 26 22 21 27 21 24 24 50 10% 66 62 60 57 54 0 0% H1/19 H2/19 H1/20 H2/20 H1/21 *Adjusted due to new segment structure S&M R&D Admin in % of net sales 17 August
Slide 20: EBIT by market segment
EBIT by market segment Very strong in Industry and Communication, Transportation at lower end of expectations MCHF H1/2021 in % H1/2020* in % Industry 28.7 21.0 17.7 15.2 Communication 19.7 11.9 1.7 1.1 Transportation 7.8 6.4 8.3 7.5 Corporate (4.5) (2.6) Total EBIT 51.7 12.2 25.1 6.7 *Adjusted due
Slide 21: Currency situation 2021
Currency situation 2021 Mixed development against CHF FX / CHF 30.06.2021 vs. 31.12.2020 Ø H1/2021 vs. Ø H1/2020 15% 10.9% 10% 7.1% 5.1% 4.6% 5% 3.9% 3.3% 3.2% 2.8% 2.6% 1.0% 0% -5% -4.5% -5.8% -10% EUR USD RMB GBP AUD INR Ø H1/2021 1.10 0.91 0.141 1.27 0.70 0.012 30.06.2021 1.10 0.92 0.143 1.28 0.7
Slide 22: Financial result
Financial result Slightly higher FX impact and costs MCHF 1 Net currency effects Other financial result 0.1 0.5 (0.9) 0 (0.4) (0.6) (0.3) -1 H1/20 H1/21 17 August 2021 | Half-year media and analysts conference 22
Slide 23: Group tax rate
Group tax rate High share of profit in low tax countries and positive impact from R&D tax benefits 25% 21.5% 21.0% 20% 19.4% 17.5% 15% 10% 5% 0% H1/20 H1/21 Expected tax rate Effective tax rate 17 August 2021 | Half-year media and analysts conference 23
Slide 24: Investments
Investments Average level in H1/2021 but significant investment projects in the pipeline MCHF 45 Investments in % of net sales 6% 5.1% 4.9% 4.5% 5% 4.4% 30 4% 3.1% 3% 15 2% 1% 38 27 38 38 18 0 0% 2017 2018 2019 2020 H1/2021 17 August 2021 | Half-year media and analysts conference 24
Slide 25: Overview balance sheet
Overview balance sheet Strong cash position MCHF 30.06.2021 31.12.2020 30.06.2020 Cash and cash equivalent 203 204 0% 143 Other current assets 343 288 19% 345 Non-current assets 253 249 2% 245 Financial liabilities 0 1 2 Other liabilities 184 148 24% 172 Equity* 615 592 4% 559 in % 77% 80% 76% Balan
Slide 26: Overview cash flow
Overview cash flow Improved cash flow generation from operating activities MCHF H1/21 H1/20 Cash flow from operating activities 43.2 5.0 Cash flow from investing activities (17.0) (17.0) Free operating cash flow 26.2 (12.0) Dividend payment (25.3) (31.2) Dividend payment to minorities (0.5) (0.5) Ch
Slide 27: Financial assessment H1/2021
Financial assessment H1/2021 Double-digit growth in order intake of +25 % and net sales of +13 % Double-digit operating profitability at 12.2 % thanks to an excellent gross margin Attractive tax rate of 17.5 % Good cash flow from operating activities reaches CHF 43 million 17 August 2021 | Half-year
Slide 28: Agenda
Agenda Overview 1st half-year 2021 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2021 Urs Ryffel (CEO) Questions and discussion 17 August 2021 | Half-year media and analysts conference 28
Slide 29: Trends in main markets (I)
Trends in main markets (I) Basic trends and prospects in most markets currently very favourable Economic environment • Despite a currently very positive market environment, risks cannot be neglected: − Covid-19 is still not overcome − World economy close to overheating, inflation risk rises, raw mat
Slide 30: Trends in main markets (II)
Trends in main markets (II) Basic trends and prospects in most markets currently very favourable Communication • Communication market ahead of strong period • Functioning of communication infrastructure proven essential during pandemic – this will release further investments • 5G picks up momentum –
Slide 31: Outlook 2021
Outlook 2021 Business outlook for 2021 • First six months of 2021 marked by broad economic recovery, from which HUBER+SUHNER derived above-average benefit. • Focused business strategy on major social trends, such as sustainable mobility, greater demand for security and rapidly growing data volumes,
Slide 32: Agenda
Agenda Overview 1st half-year 2021 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2021 Urs Ryffel (CEO) Questions and discussion 17 August 2021 | Half-year media and analysts conference 32
Slide 33: Financial calendar
Financial calendar Net sales / Order intake (9 months) 21.10.2021 Net sales / Order intake 2021 21.01.2022 Annual report 2021 08.03.2022 Media and analysts’ conference 08.03.2022 Annual General Meeting 06.04.2022 Figures are available online at www.hubersuhner.com/en/company/investors/publications 1
Slide 34: Connecting – today and beyond
Connecting – today and beyond
Slide 35: 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