Slide 1: Cicor Technologies Ltd. Deutsches Eigenkapitalforum 2024
Cicor Technologies Ltd. Deutsches Eigenkapitalforum 2024 November 26, 2024 Alexander Hagemann, CEO Peter Neumann, CFO
Slide 2: Disclaimer
November 26, 2024 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
Slide 3: Cicor Group – Market and Business
Alexander Hagemann, CEO Cicor Group – Market and Business 3
Slide 4: Fastest growing manufacturer of advanced electronics in Europe
The Cicor Group Fastest growing manufacturer of advanced electronics in Europe 2024 Sales guidance 2024 EBITDA guidance CHF 470-510 million CHF 50-60 million Organic growth ahead of Electronic Mid-Term 10-13% margin. Manufacturing market Top profitability vs peer group HY 2024 Earnings per share HY
Slide 5: Turning ideas into advanced electronic solutions
Electronification of everything Turning ideas into advanced electronic solutions Healthcare Technology Industrial Aerospace & Defence (A&D) 24% of sales in HY 2024 33% of sales in HY 2024 24% of sales in HY 2024 Cicor helps improve Cicor is at the forefront Cicor ensures safety, global healthcare by
Slide 6: Advancing healthcare through technology
United Kingdom Sweden Hartlepool, Newport Norrtälje Building ofin 2023 29% of sales leading platforms in attractive markets Germany Advancing healthcare Dresden, Radeberg, Ulm, Wutha-Farnroda / Buttlar Romania through technology Arad, Bucharest China Switzerland Dongguan, Suzhou Boudry, Bronschhofen
Slide 7: European market leader for A&D EMS
Building ofin 2023 29% of sales leading platforms in attractive markets Bedford, UK European market leader Radeberg, Germany Newport, UK Gosport, UK Ulm, Germany for A&D EMS Boudry, Switzerland Bronschhofen, Switzerland Wangs, Switzerland • Long-standing supplier of design and manufacturing services
Slide 8: Driving automation and miniaturisation in industry
United Kingdom Sweden Hartlepool, Newport Norrtälje Building ofin 2023 29% of sales leading platforms in attractive markets Germany Dresden, Radeberg, Ulm, Wutha-Farnroda / Buttlar Driving automation and Romania miniaturisation in industry Arad China Switzerland Dongguan, Suzhou Boudry, Bronschhofen
Slide 9: Leadership – step by step
The Cicor Group Leadership – step by step European market position UK market position # 10 #1 Pro-forma 2024, From acquisitions from # 28 in 2021 made 2021-2024 Position in Aerospace & Defence Position in Healthcare Technology #1 #4 In Europe - expanding the lead In Europe - working towards vs. # 2
Slide 10: Expansion into Sweden and plans to further strengthen market position in Germany
M&A supports strategy – recent ad hoc announcement dated Nov. 8, 2024 Expansion into Sweden and plans to further strengthen market position in Germany Establish a significant presence in the Nordics as a step in the transformation of Cicor towards becoming the leading pan-European partner in its cho
Slide 11: Cicor with strongest resilience and highest growth
Net Sales Q1-Q3/2024 and growth comparison amongst listed European peers Cicor with strongest resilience and highest growth Q1-Q3/2023 Q1-Q3/2024 800 700 600 500 EUR mln 400 300 200 100 0 Growth -17% -16% +21% +13% -11% -5% Organic -17% -16% -4% -6% -11% -20% 11
Slide 12: Cicor 2028
Alexander Hagemann, CEO Cicor 2028 12
Slide 13: Vision Statement – Cicor 2028
Cicor 2028 – creating together Vision Statement We are the leading pan-European electronics design and manufacturing partner for healthcare technology, aerospace/- defence and industrial, recognised as an employer of choice, committed to operating sustainably 13
Slide 14: 14
14
Slide 15: Expect healthy market growth during strategy period
The European EMS market Expect healthy market growth during strategy period • European EMS market expected to grow at 6.5% CAGR from 2023 to 2028 • Normalisation of market in 2025 after destocking in 2024 • Unchanged longterm trends of nearshoring and increased outsourcing Market driving factors: •
Slide 16: A comprehensive strategy with clear implementation plan
Core strategy initiatives towards delivering on 2028 objectives A comprehensive strategy with clear implementation plan Focus on high growth Transformation into a true Business excellence AS Division as high tech verticals creator of products driving performance differentiator Accelerate growth with
Slide 17: Market Leadership - How we outgrow the market
Market Leadership - How we outgrow the market Cicor focuses on sub-verticals with high growth and margins Bubble size: EMEA market size 2023 in MCHF High > 15% Cicor addressed sub-verticals Mid 10% - 15% Cicor EBITDA 2023 Low < 10% -2.0% 2.0% 6.0% 10.0% 14.0% Expected Market CAGR 2023 - 2028 Source:
Slide 18: Transforming Cicor into a true product creation company
Strengthening the engineering portion of Cicor Transforming Cicor into a true product creation company customer loyalty & pricing power Business case & use specification Research and product After sales development New and lifetime Device Distribution services product Electronics assembly introducti
Slide 19: Cicor - Operations Strategy
Cicor - Operations Strategy Business excellence driving results VISION MISSION The Business Excellence Model is a framework that combines Manufacturing Engineering Compliance Information Customer vision, mission and values Sourcing Finance People with key value-add performance categories and support
Slide 20: Rationale for M&A – the external market view
Rationale for M&A – the external market view The European EMS market is highly fragmented and growing, pre-destined for consolidation Fragmented market Growing market Customer loyalty Economies of scale 1,700 EMS € 25 billion In Europe, consolidation Adressed market (2023), has just begun: 44% of to
Slide 21: M&A
cicor Peter Neumann, CFO M&A 21
Slide 22: Proven path to value creation
Experience from past acquisitions Proven path to value creation Highly selective which opportunities are pursued Fast realization of Cicor is often the cash and cost acquirer of choice synergies Market share gains Ability to acquire at post-closing moderate multiples Efficient and trusted M&A proces
Slide 23: Strong Financial foundation for M&A
Value creation through M&A Strong Financial foundation for M&A • 2023 Refinancing provides flexibility for future operational and acquisition requirements at attractive conditions • Interests linked to SARON with margin grid depending on Cicor leverage (net debt / EBITDA) • Net debt / EBITDA ratio a
Slide 24: Clear strategy to establish Cicor as pan-European leader
Value creation through M&A Clear strategy to establish Cicor as the pan-European leader for A&D, Medical and High-End Industrial Electronic solutions Driving industry consolidation in Europe with a focus on well-managed manufacturers and highly attractive customer portfolios within Cicor’s core busi
Slide 25: Strong deal flow, selective deal criteria and high success rate
Value creation through M&A Strong deal flow, selective deal criteria and high success rate Since announcement of our inorganic growth strategy in mid-2021 … Thin film business of >1’700 EMS companies >100 deals reviewed 19 NBOs issued 11 deals under exclusivity 8 deals closed in Europe to date Carve
Slide 26: Cicor often acquirer of choice for sellers
Value creation through M&A Cicor often acquirer of choice for sellers Long-term industrial vision Alignment of Trust interests Swissness M&A track record Collaboration with Industry expertise local management Cicor’s M&A edge Cicor has build up a reputation as a long-term oriented, trust-worthy stra
Slide 27: Comprehensive PMI approach to leverage synergies
Value creation through M&A Cicor employs a comprehensive PMI approach, ensuring a solid foundation to leverage synergies across all business activities Cicor PMI* Pillars Main areas of synergy • Activities core to our business and close to our customers Engineering • Where most potential synergies S
Slide 28: Cicor's acquisitions deliver consistent and excellent results
Value creation through M&A Cicor’s acquisitions deliver consistent and excellent results • Acquired CHF 208 million revenue (LTM pre-closing) with 7 acquisitions (CHF 95 Million excl. three 2024 acquisitions) Growth acceleration • Cicor is delivering strong revenue synergies. 2024 revenue of acquire
Slide 29: Consistent Revenue Performance and Synergies
Value creation through M&A Consistent Revenue Performance and Synergies Revenue 2024 outlook compared to LTM pre-Aquisition in local currency*** • 2024 revenue of acquired companies in 120% local currency at 16% above pre-M&A 113% LTM performance (+30% excluding three 100% 2024 acquisitions) 80% • A
Slide 30: Consistent EBITDA Performance
Value creation through M&A Consistent EBITDA Performance EBITDA 2024 outlook compared to LTM pre-Aquisition in local currency*** • 2024 EBITDA of acquired companies in 200% local currency 40% above pre-LTM 173% EBITDA (41% excluding three 2024 150% acquisitions) 96% • All acquisitions perform strong
Slide 31: Consistent FCF Delivery to recovery of net M&A cash outlay
Value creation through M&A Consistent FCF Delivery to recovery of net M&A cash outlay Cumulative Free Cash Flow in % of Cash outlay for acquisition*** • M&A net cash outlay expected to be 50% recovered via FCF delivery of acquired 46% 45% 44% companies in 5-7 years 40% 40% 40%** • For 7 acquisitions
Slide 32: M&A Summary - Cicor's unique position to create value
Value creation through M&A M&A Summary - Cicor’s unique position to create value Strong financial foundation Attractive external market with existing credit lines for an inorganic growth strategy Cicor’s recipe Proven track-record & expertise for M&A Focus on known core business of delivering succes
Slide 33: Key Figures per Share
Half-Year Report 2024 Key Figures per Share HY 2024 HY 2023 %YoY • Favorable EPS and market restated 0.0% capitalization trends demonstrate Number of registered shares issued 30.6. 3’478’616 3’411’169 2.0% strong shareholder value creation Number of Treasury shares 30.6. -307’929 -251’267 22.6% Numb
Slide 34: Long-term development of Earnings per Share
Value creation through M&A Long-term development of Earnings per Share CHF million CHF • Positive development of EPS as a result 20 4.0 of improved Net Profit performance 3.70 3.5 • Dilution on EPS due to the issuance of the Mandatory Convertible Note 15 2.69 3.0 2.44 2.5 10 1.77 1.74 2.0 1.62 1.33
Slide 35: Mid-term Targets
Peter Neumann, CFO Mid-term Targets 35
Slide 36: Cicor's Growth transformation delivery excellent results
Financial Mid-Term Objectives for 2028 Cicor’s Growth transformation delivery excellent results Net Sales EBITDA 600 60 Guidance 2024 Guidance 2024 50-60 mCHF 500 50 11.6% 470-510 mCHF 400 40 HY1: 10.7% 10.3% (11.1% ex M&A mCHF mCHF 300 30 1-timer) 9.7% 9.0% 200 20 100 10 0 0 2020 2021 2022 2023 202
Slide 37: Financial Mid-Term Objectives for 2028
Financial Mid-Term Objectives for 2028 Creating together: Establishing the pan-European leader Organic Growth Revenue Profitability Other EBIT >1’000 ROIC 1) 7 - 10% 7 – 10% >15% Net Debt / EBITDA p.A. million EBITDA <2.75 Capex 10 – 13% CHF 2.5 – 3.0% • Gaining market share through focus on strateg
Slide 38: Summary and Outlook
Alexander Hagemann, CEO Summary and Outlook 38
Slide 39: Resilience and continued growth
Outlook 2024 Resilience and continued growth • Organic growth in the first nine months slightly negative but significantly outperforming the market – expect order intake and sales to continue recovery in Q4/2024 • Very satisfying progress in integrating newly acquired companies, especially on profit
Slide 40: Cicor – an asset for your portfolio
Outlook 2024 Cicor – an asset for your portfolio • Market with longterm growth driven by megatrends of electronification‚ outsourcing and nearshoring • Strategy 2028 targeting the most profitable segments of the market: Healthcare Technology, Aerospace & Defence, Industrial • Establishing strong and
Slide 41: Analysts
Financial Research Analysts Kepler Cheuvreux Research Partners Zürcher Kantonalbank Patrick Steiner Reto Huber Bernd Laux psteiner@keplercheuvreux.com reto.huber@researchpartners.ch bernd.laux@zkb.ch +43 (1) 20 577 383 +41 44 533 40 30 +41 44 292 37 23 Baader Helvea mwb Research Zana Mamelli Alexand
Slide 42: Contacts
Investor Relations Contacts Alexander Hagemann Peter Neumann Michael Götti CEO CFO VP Corporate Marketing & Communications Cicor Management AG, Gebenloostrasse 15, 9552 Bronschhofen, Switzerland investor@cicor.com | +41 71 913 73 00 42
Slide 43: Thank You
Thank You cicor.com Cicor Group @cicor.group