Slide 1: Excellence in Connectivity Solutions
Excellence in Connectivity Solutions
Slide 2: Half-year conference 2018
Half-year conference 2018 21 August 2018 | Media and analysts conference
Slide 3: Agenda
Agenda Overview 1st half-year 2018 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2018 Urs Ryffel (CEO) Questions Buffet lunch 21 August 2018 | Media and analysts conference
Slide 4: Strong first half-year 2018
Overview 1st half-year 2018 Strong first half-year 2018 Broad-based double-digit growth • Above-average growth in order intake and net sales • All main above previous year; transportation and industrial markets with strong growth • Double-digit growth rates in all three main regions Higher profitabi
Slide 5: Figures at a glance
Overview 1st half-year 2018 Figures at a glance CHF million H1/18 H1/17 Δ% Order intake 516.8 425.1 +21.6 Net sales 474.0 410.7 +15.4 Operating profit (EBIT) 44.3 32.8 +35.1 • as % of net sales 9.4 8.0 Net income 31.6 23.9 +32.2 • as % of net sales 6.7 5.8 Excellence in Connectivity Solutions 21 Aug
Slide 6: Three technology segments: focused strategy based on megatrends
Overview 1st half-year 2018 Three technology segments Focused strategy based on megatrends Opportunities with Core markets Growth initiatives Neo-ecology New work growth potential Sustainability Open Security innovation society Frequency Super-safe- Radio Post-Carbon Industry 4.0 CEM1 and Test & Aer
Slide 7: Net sales development technology segments
Overview 1st half-year 2018 Net sales development technology segments Increase in all three technology segments 250 200 186.4 190.1 153.2 150 130.7 118.1 106.2 100 H1/2017 50 H1/2018 0 Radio Frequency Fiber Optics Low Frequency Excellence in Connectivity Solutions 21 August 2018 | Media and analysts
Slide 8: Radio Frequency technology segment
Overview 1st half-year 2018 Radio Frequency technology segment Strong performance with renewed growth and high profitability CHF million Key aspects H1/18 H1/17 Δ% • Attractive profitability increased further • Anew high contribution of the submarkets Aerospace & Defense as well as Test & Order inta
Slide 9: Fiber Optics technology segment
Overview 1st half-year 2018 Fiber Optics technology segment Growing at below average margins compared to strong prior-year period CHF million Key aspects H1/18 H1/17 Δ% • Below-average profitability; however, EBIT margin improved compared to H2/17 • Continued significant volumes from expansion Order
Slide 10: Low Frequency technology segment
Overview 1st half-year 2018 Low Frequency technology segment Continues impressive upward trend in net sales and profitability CHF million Key aspects H1/18 H1/17 Δ% • Railway: very dynamic start thanks to strong increase of customer projects in Asia and Europe Order intake 169.5 120.3 +40.8 • Automo
Slide 11: Net sales by market
Overview 1st half-year 2018 Net sales by market Communication slightly above previous year, Transportation and Industrial increase strongly CHF million 250.0 +2% 200.0 22% 150.0 +44% 47% +15% H1/2018 100.0 50.0 31% Communication H1/2017 Transportation H1/2018 Industrial 0.0 Communication Transportat
Slide 12: Net sales by region
Overview 1st half-year 2018 Net sales by region Double-digit growth rates in all three main regions CHF million +12% 200 +18% 150 18% 42% 100 +18% H1/2018 50 EMEA (incl. CH) 40% H1/2017 Asia-Pacific H1/2018 Americas 0 EMEA Asia-Pacific Americas (incl. CH) Excellence in Connectivity Solutions 21 Augu
Slide 13: Selected milestones 1st half year 2018
Overview 1st half-year 2018 Selected milestones 1st half year 2018 Communication – Data Centers Transportation – Opportunity growth initiative with growth potential Significantly more data center With the RADOX® HPC High orders in Asia and new customer power charging system, the projects for major A
Slide 14: Agenda
Agenda Overview 1st half-year 2018 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2018 Urs Ryffel (CEO) Questions Buffet lunch 21 August 2018 | Media and analysts conference
Slide 15: Factors impacting order intake
Financial results Factors impacting order intake CHF million 550 +74.8 million +16.9 million +91.7 million +17.6% +4.0% +21.6% 500 450 400 350 425 425 500 517 300 Order intake H1/2017 Organic Currency + copper Order intake H1/2018 Excellence in Connectivity Solutions 21 August 2018 | Media and analy
Slide 16: Factors impacting «top line»
Financial results Factors impacting «top line» CHF million 500 +47.2 million +16.1 million +63.3 million +11.5% +3.9% +15.4% 450 400 350 411 411 458 474 300 Net sales H1/2017 Organic Currency + copper Net sales H1/2018 Excellence in Connectivity Solutions 21 August 2018 | Media and analysts conferen
Slide 17: Net sales development technology segments
Financial results Net sales development technology segments +10.7% +2.0% +44.2% reported CHF million +7.8% +2.1% +32.2% organic 200 186.4 190.1 153.2 150 130.7 118.1 106.2 100 50 0 Radio Frequency Fiber Optics Low Frequency H1/2017 H1/2018 Excellence in Connectivity Solutions 21 August 2018 | Media
Slide 18: Gross margin
Financial results Gross margin Business mix influences gross margin CHF million 170 40% 160 35.0% 33.9% 33.6% 35% 150 140 30% 130 159 120 139 25% 128 110 Gross profit Gross margin 100 20% H1/17 H2/17 H1/18 Excellence in Connectivity Solutions 21 August 2018 | Media and analysts conference 18
Slide 19: Operating expenses
Financial results Operating expenses Sub proportional increase CHF million 150 28.3% 30% 27.0% 24.6% 100 20% 50 10% Operating expenses 111 103 117 in % of net sales 0 0% H1/17 H2/17 H1/18 Excellence in Connectivity Solutions 21 August 2018 | Media and analysts conference 19
Slide 20: Factors influencing EBIT
Financial results Factors influencing EBIT CHF million +11.4 million +3.8 million -3.7 million +11.5 million EBIT margin 50 +34.8% +11.6% -11.3% +35.1% 8.0% ► 9.4% 40 30 20 10 32.8 32.8 44.2 44.3 44.3 0 EBIT H1/17 Organic Currency + copper One-off effects EBIT H1/18 Excellence in Connectivity Soluti
Slide 21: EBIT technology segments
Financial results EBIT technology segments CHF million H1/18 in % H1/17 in % Radio Frequency 19.9 15.2 15.5 13.1 Fiber Optics 12.1 6.4 16.2 8.7 Low Frequency 15.4 10.1 0.5 0.4 Corporate (3.2) 0.6 Total EBIT 44.3 9.4 32.8 8.0 Excellence in Connectivity Solutions 21 August 2018 | Media and analysts co
Slide 22: Currency development during the first half-year 2018
Financial results Currency development during the first half-year 2018 Development vs CHF USD RMB GBP EUR AUD PLN INR BRL 31.12.17 vs 30.6.18 Ø H1/17 vs Ø H1/18 105% USD 0.3% USD -2.3% USD 100% RMB -0.3% RMB 5.2% RMB GBP GBP -1.5% GBP 6.1% EUR EUR -2.0% EUR 8.0% AUD AUD -4.6% AUD -0.8% 95% PLN PLN -
Slide 23: Financial result
Financial results Financial result Negative currency influences CHF million 3 2 (0.4) (2.4) 1 0.1 0 -0.2 -0.2 -1 -2.5 -2 Net currency effects Other financial result H1/2017 H1/2018 -3 Excellence in Connectivity Solutions 21 August 2018 | Media and analysts conference 23
Slide 24: Group tax rate
Financial results Group tax rate Reduced tax rate due to US tax reform 30% 25.9% 26.4% 25.1% 24.6% 25% 20% 15% 10% 5% Expected tax rate Effective tax rate 0% H1/17 H1/18 Excellence in Connectivity Solutions 21 August 2018 | Media and analysts conference 24
Slide 25: Factors influencing net income
Financial results Factors influencing net income CHF million 40 +11.5 million -2.1 million -1.8 million +7.7 million +48.2% -8.6% -7.4% +32.2% EPS 1.23 1.62 (+32%) 30 20 10 23.9 23.9 33.3 31.5 31.6 0 Net income H1/17 EBIT impact Financial result Income tax Net income H1/18 Excellence in Connectivi
Slide 26: Investments
Financial results Investments Below-average volume expected in H1, project-related increase in H2 expected CHF million 25 6% 5.5% 5% 20 4.4% 4% 15 2.3% 3% 10 2% 5 1% Investments 18.1 19.9 11.0 in % of net sales 0 0% H1/17 H2/17 H1/18 Excellence in Connectivity Solutions 21 August 2018 | Media and an
Slide 27: Balance sheet
Financial results Balance sheet Unchanged strong CHF million 30.06.2018 31.12.2017 ▲ 30.06.2017 Cash and cash equivalent 151 153 -1% 140 Other current assets 376 347 8% 343 Non-current assets 245 252 -3% 245 Liabilities 173 159 9% 164 Equity 599 593 1% 565 in % 78% 79% 78% Balance sheet total 772 75
Slide 28: Overview free operating cash flow
Financial results Overview free operating cash flow Improved cash flow from operating activities CHF million H1/18 H1/17 Cash flow from operating activities 34.8 23.1 Cash flow from investing activities (13.2) (14.1) Free operating cash flow 21.5 8.9 Dividend payment (21.4) (24.3) Change in treasury
Slide 29: Financial assessment H1/18
Financial results Financial assessment H1/18 Double-digit organic growth in orders intake (+17.6 %) and net sales (+11.5 %) Operational profitability in the upper half of the medium-term target range (9.4 %) Significantly improved free operating cash flow Excellence in Connectivity Solutions 2
Slide 30: Agenda
Agenda Overview 1st half-year 2018 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2018 Urs Ryffel (CEO) Questions Buffet lunch 21 August 2018 | Media and analysts conference
Slide 31: Conclusion 1st half-year 2018
Outlook 2018 Conclusion 1st half-year 2018: Broad-based growth – higher profitability – growth initiatives make a considerable contribution • Above-average growth in order intake and net sales, broadly based • Communication: net sales at high level thanks to major projects, pressure on margins remai
Slide 32: Outlook 2018: Technology segments
Outlook 2018 Technology segments see FY conference 13.3.2018 On track for the full year after H1/2018 Radio Frequency • Goal 2018: repeat previous year’s strong performance • Strategic thrust: defend good margin and remain on growth path through RF solutions for aerospace and defense technology
Slide 33: Outlook 2018: Markets
Outlook 2018 Markets see FY conference 13.3.2018 Starting position in key markets and with key customers unchanged Communication • LTE rollouts in price-sensitive emerging economies last – 5G mobile network large-scale starting 2020 • Continuous increase in global data volume in Internet traffic dri
Slide 34: Outlook 2018
Outlook 2018 Outlook 2018 Net sales guidance for 2018 • Second half-year 2018 with continued positive development compared to the previous year • Momentum likely to be lower in the second half of the year due to project-related influences • Growth in net sales of at least 10 % compared to the previo
Slide 35: Agenda
Agenda Overview 1st half-year 2018 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2018 Urs Ryffel (CEO) Questions Buffet lunch 21 August 2018 | Media and analysts conference
Slide 36: Agenda
Agenda Overview 1st half-year 2018 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2018 Urs Ryffel (CEO) Questions Buffet lunch 21 August 2018 | Media and analysts conference