Huber + Suhner Ag · SIX:HUBN
Huber + Suhner — FY2022 Earnings Presentation
42 slides from Huber + Suhner's earnings presentation, Mar 7, 2023
Slide 1: HUBER+SUHNER
HUBER+SUHNER
Slide 2: Full-year results 2022 Media and analysts' conference
Full-year results 2022 Media and analysts’ conference 7 March 2023 | Full-year results 2022 | Media and analysts' conference 2
Slide 3: Agenda
Agenda Overview of business year 2022 Urs Ryffel (CEO) Financial results 2022 Ivo Wechsler (CFO) Corporate Responsibility, Strategic focus, Trends, Outlook 2023 Urs Ryffel (CEO) Questions and answers 7 March 2023 | Full-year results 2022 | Media and analysts' conference 3
Slide 4: Impressive growth with double-digit EBIT margin
Impressive growth with double-digit EBIT margin MCHF • 12.9 % organic growth in net sales to 2022 2021 Δ% record level Order intake 975.4 995.6 -2.0 • Book-to-bill rate of 1.02, order backlog at high prior-year level despite Net sales 954.6 862.9 10.6 adjustment for already booked Russian business -
Slide 5: EBIT
EBIT 2022 profitability in the upper half of the medium-term target range of 9‒12 % MCHF 110 104.6 15% 103.2 100 90 82.5 80.5 80 12.1% 10.8% 10% 70 9.7% 61.2 60 9.3% 8.3% EBIT 50 EBIT margin 40 5% 30 20 10 0 0% 2018 2019 2020 2021 2022 7 March 2023 | Full-year results 2022 | Media and analysts' conf
Slide 6: Industry segment
Industry segment Growth with high profitability MCHF Key aspects • Test and measurement, general 2022 2021 Δ% industrial and energy increased significantly; aerospace and defense Order intake 310.5 296.6 4.7 declined after two years of strong growth Net sales 298.0 275.4 8.2 • Accelerated expansion
Slide 7: Communication segment
Communication segment Recurrent growth in net sales at lower EBIT margin MCHF Key aspects • Expansion of mobile infrastructure 2022 2021 Δ% drives growth in net sales – North American market flattens out, while Order intake 380.6 420.0 -9.4 fresh impetus from 5G markets in Asia Net sales 385.9 341.1
Slide 8: Transportation segment
Transportation segment Net sales growth, profitability remains at prior-year level MCHF Key aspects • Railway business volume reached 2022 2021 Δ% previous year’s level Order intake 284.4 279.0 1.9 • Rail communications growth initiative showed significant growth Net sales 270.6 246.4 9.8 • Demand f
Slide 9: Net sales by market segment
Net sales by market segment Growth in all three market segments as a result of balanced diversification MCHF +13.1 % 350 +8.2 % 300 +9.8 % 28% 31% 250 200 2022 150 100 41% 50 0 Industry Communication Transportation Industry 2021 Communication 2022 Transportation 7 March 2023 | Full-year results 2022
Slide 10: Net sales by technology
Net sales by technology Growth in all three technologies with major increases in FO and LF MCHF 400 +11.3 % 350 +15.6 % 300 33% 27% +4.2 % 250 200 2022 150 100 40% 50 0 RF FO LF Radio frequency 2021 Fiber optics 2022 Low frequency 7 March 2023 | Full-year results 2022 | Media and analysts' conferenc
Slide 11: Net sales by region
Net sales by region Very dynamic development of the business in APAC and the Americas MCHF 500 +7.0 % 23% 400 300 +13.2 % 2022 51% +16.5 % 200 26% 100 0 EMEA (incl. CH) Americas Asia-Pacific EMEA (incl. CH) 2021 Americas 2022 Asia-Pacific 7 March 2023 | Full-year results 2022 | Media and analysts' c
Slide 12: Agenda
Agenda Overview of business year 2022 Urs Ryffel (CEO) Financial results 2022 Ivo Wechsler (CFO) Corporate Responsibility, Strategic focus, Trends, Outlook 2023 Urs Ryffel (CEO) Questions and answers 7 March 2023 | Full-year results 2022 | Media and analysts' conference 12
Slide 13: Financial performance
Financial performance Five excellent semesters in a row MCHF 600 14% 12.2% 12.1% 11.3% 12% 500 10.3% 10.0% 10% 400 8% 300 6.7% 6% 200 4% 100 2% 397 377 351 361 494 424 501 439 498 477 477 477 0 0% H1/20 H2/20 H1/21 H2/21 H1/22 H2/22 Order intake Net sales EBIT-margin 7 March 2023 | Full-year results
Slide 14: Factors impacting order intake
Factors impacting order intake Organic growth in two out of three market segments MCHF 1200 IND COM - 20.2 MCHF TRA - 2.0% 1000 + 17.7 MCHF - 34.0 MCHF + 16.6 MCHF + 6.0 % - 8.1 % + 6.0 % 800 600 Currency & copper 995.6 Organic growth and portfolio 975.4 400 + 0.3 MCHF - 20.5 MCHF + 0.0% - 2.1% 200
Slide 15: Factors impacting net sales
Factors impacting net sales Strong organic growth in all three market segments MCHF TRA + 91.6 MCHF 1000 COM + 10.6% IND + 35.1 MCHF 800 + 14.2% + 49.8 MCHF + 26.2 MCHF + 14.6% + 9.5% 600 954.6 Currency & copper 862.9 400 Organic growth and portfolio + 111.0 MCHF - 19.4 MCHF + 12.9% - 2.2% 200 0 Net
Slide 16: Gross margin
Gross margin Pressure from customer mix (COM) and raw material price increases (TRA) MCHF Gross profit Gross margin 200 40% 35.9% 36.7% 36.5% 34.8% 39.7% 34.8% 150 30% 100 20% 50 10% 131 130 169 161 174 166 0 0% H1/20 H2/20 H1/21 H2/21 H1/22 H2/22 7 March 2023 | Full-year results 2022 | Media and an
Slide 17: Operating expenses
Operating expenses Declining overhead ratio despite higher spending in Sales&Marketing and R&D MCHF 300 27.9% 30% 26.2% 25.1% 250 48 200 49 Σ 226 Σ 240 20% Σ 206 46 59 150 56 48 100 10% 121 132 50 112 0 0% 2020 2021 2022 S&M R&D Admin in % of net sales 7 March 2023 | Full-year results 2022 | Media a
Slide 18: EBIT by market segment
EBIT by market segment Very strong in Industry – Communication and Transportation somewhat behind ambitions MCHF 2022 2021 Industry 63.4 21.3 % 58.4 21.2 % Communication 34.2 8.9 % 41.5 12.2 % Transportation 13.7 5.1 % 12.5 5.1 % Corporate (8.0) (7.8) Total EBIT 103.2 10.8 % 104.6 12.1 % 7 March 202
Slide 19: Financial result
Financial result Overall improved despite higher hedging costs MCHF 1 Net currency effects Other financial result (2.3) (1.8) 0 -1.1 -1.6 -1 -1.2 -0.2 -2 -3 2021 2022 7 March 2023 | Full-year results 2022 | Media and analysts' conference 19
Slide 20: Group tax rate
Group tax rate Low effective tax rate thanks to impact from R&D and other tax benefits 25% 19.2% 19.9% 20% 16.0% 14.7% 15% 10% 5% 0% 2021 2022 Expected tax rate Effective tax rate 7 March 2023 | Full-year results 2022 | Media and analysts' conference 20
Slide 21: Impact from Phoenix Dynamics acquisition
Impact from Phoenix Dynamics acquisition Resulting goodwill of CHF 5.9 million MCHF Effect of acquisition Net assets acquired 1.6 Goodwill 5.9 Purchase price 7.5 Net cash outflow 2022 5.1 Deferred purchase price payment 1.8 P&L effect 2022 immaterial 7 March 2023 | Full-year results 2022 | Media and
Slide 22: Balance sheet
Balance sheet Solid structure MCHF 31.12.2022 31.12.2021 30.06.2022 Cash and cash equivalent 151 220 -31% 146 Other current assets 389 346 12% 391 Non-current assets 275 268 3% 274 Financial liabilities - - - Other liabilities 208 190 10% 206 Equity* 607 644 -6% 605 in % 74% 77% 75% Balance sheet to
Slide 23: Cash flow
Cash flow High investments and significant cash returns to shareholders MCHF 2020 2021 2022 Cash flow from operating activities 86.5 101.7 87.3 Cash flow from investing activities (36.3) (45.1) (49.7) Free operating cash flow 50.2 56.6 37.7 Dividend payment (31.2) (25.3) (38.2) Dividend payment to m
Slide 24: Share buyback programme
Share buyback programme Programme almost completed in % of in % of Amount of Ø share price Volume in MCHF registered programme shares shares target 2021 141 500 83.62 11.8 0.7% 14.0% 2022 786 584 80.27 63.1 3.9% 77.9% Total number of 928 084 80.78 75.0 4.6% 91.9% shares bought 7 March 2023 | Full-ye
Slide 25: Return on invested capital
Return on invested capital Attractive level P+L 2022 Balance Sheet (31.12.22) MCHF MCHF 120 700 100 600 -16 -206 500 80 400 60 103 300 637 40 87 200 431 20 100 0 0 EBIT - effective NOPAT “operating “operating Invested Income Tax rate Assets”* Liabilities”* Capital (16.0%) 87 ø415** ** YE22 + YE21 /
Slide 26: Dividend proposal
Dividend proposal Earnings-oriented dividend policy of 40-50 %, increase of five percent per share proposed MCHF 79% 60 80% 50 60% Anniversary dividend 40 48% 50% 49% 45% 47% Ordinary dividend 30 40% Pay-out ratio ordinary dividend in % Pay-out ratio incl. anniversary dividend in % 20 20% 10 29.2 31
Slide 27: Financial assessment 2022
Financial assessment 2022 Double-digit organic growth leads to new sales record (CHF 955 million) in company history Second year in a row double-digit EBIT margin despite challenging environment Continuous attractive effective tax rate of 16.0 % Almost completed share buyback programme – increase in
Slide 28: Agenda
Agenda Overview of business year 2022 Urs Ryffel (CEO) Financial results 2022 Ivo Wechsler (CFO) Corporate Responsibility, Strategic focus, Trends, Outlook 2023 Urs Ryffel (CEO) Questions and answers 7 March 2023 | Full-year results 2022 | Media and analysts' conference 28
Slide 29: Scorecard
Scorecard 1 The SBTI approved target will be replaced by new science-based targets in the course of 2023, reflecting the company’s official commitment to net zero in July 2022. 2 The funds will be provided from the operating business as well as from the Swiss-based HUBER+SUHNER Foundation 7 March 20
Slide 30: Corporate Responsibility Performance highlights – Relationships 2022
Corporate Responsibility Performance highlights – Relationships 2022 Ernst & Young Ltd performed a limited assurance engagement on selected figures marked with a for 2022. 7 March 2023 | Full-year results 2022 | Media and analysts' conference 30
Slide 31: Corporate Responsibility Performance highlights – Environment 2022
Corporate Responsibility Performance highlights – Environment 2022 y-o-y Ernst & Young Ltd performed a limited assurance engagement on selected figures marked with a for 2022. 7 March 2023 | Full-year results 2022 | Media and analysts' conference 31
Slide 32: Agenda
Agenda Overview of business year 2022 Urs Ryffel (CEO) Financial results 2022 Ivo Wechsler (CFO) Corporate Responsibility, Strategic focus, Trends, Outlook 2023 Urs Ryffel (CEO) Questions and answers 7 March 2023 | Full-year results 2022 | Media and analysts' conference 32
Slide 33: Markets verticals
Markets verticals 2022 Sales by segment Sales by customer market growth Long term growth drivers • Test & Measurement • Medical Device Industry Industrials • Energy • Process 22 % Increasing demand for power and data connectivity (IoT, Industry 4.0, …) • High Power Charging Industries 31 % Communica
Slide 34: Economic environment and strategic focus
Economic environment and strategic focus Economic environment • Market trends for connectivity business still fundamentally positive. However, short term uncertainties and risks dominate the operational agenda: − Recovery from Covid-19 effects seamlessly succeeded by new challenges due to war in Ukr
Slide 35: Market trends in Industry
Market trends in Industry • Smart grids for power generation and distribution require 24/7 uninterrupted operation of critical infrastructure • Need for high-precision components with maximum signal integrity for test and measurement applications will persist • Expansion of high-power charging into
Slide 36: Market trends in Communication
Market trends in Communication • A reliable communication infrastructure is more than ever crucial for the functioning of society and the efficiency of economies • Fixed network infrastructure is part of the backbone of any mobile communications infrastructure • Increasing complexity and costs requi
Slide 37: Market trends in Transportation
Market trends in Transportation • Urbanisation fuels build-out of public transportation – substantial investments in rail infrastructure will be required for ecological mobility • Improved passenger experience through seamless and uninterrupted availability of on-board communication services in publ
Slide 38: Outlook 2023
Outlook 2023 Medium-term EBIT target range The medium-term target range of 9–12% for the EBIT margin remains unchanged. Net sales guidance for 2023 At this point in time, HUBER+SUHNER does not provide a sales forecast for the year 2023. The company will provide an outlook for the full year at the la
Slide 39: Financial calendar
Financial calendar Annual General Meeting (Pfäffikon ZH) 29.03.2023 Half-year report 2023 15.08.2023 Media and analysts’ conference (webcast) 15.08.2023 Sales and order intake (9 months) 24.10.2023 Sales and order intake (12 months) 23.01.2024 Figures are available online at www.hubersuhner.com/en/c
Slide 40: Agenda
Agenda Overview of business year 2022 Urs Ryffel (CEO) Financial results 2022 Ivo Wechsler (CFO) Corporate Responsibility, Strategic focus, Trends, Outlook 2023 Urs Ryffel (CEO) Questions and answers 7 March 2023 | Full-year results 2022 | Media and analysts' conference 40
Slide 41: Connecting – today and beyond
Connecting – today and beyond
Slide 42: 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