Slide 1: Excellence in Connectivity Solutions
Excellence in Connectivity Solutions
Slide 2: Agenda
Agenda Overview of financial year 2018 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2019 Urs Ryffel (CEO) 19 March 2019 | Media and analysts conference
Slide 3: Overview of financial year 2018
Overview of financial year 2018 HUBER+SUHNER reports strong organic growth – profitability increases significantly Broad-based growth in net sales • All regions grow at double-digit rates. • All three technology segments increase order intake and net sales significantly. • Communication market clear
Slide 4: Figures at a glance
Overview of financial year 2018 Figures at a glance CHF million 2018 2017 Δ% Order intake 915.2 826.3 +10.8 Net sales 885.0 774.0 +14.3 Operating profit (EBIT) 82.5 58.1 +41.9 as % of net sales 9.3 7.5 Net income 61.4 42.1 +45.6 as % of net sales 6.9 5.4 Excellence in Connectivity Solutions 19 March
Slide 5: Net sales
Overview of financial year 2018 Net sales Above-average growth CHF million 900 885 774 749 737 706 600 300 0 2014 2015 2016 2017 2018 Excellence in Connectivity Solutions 19 March 2019 | Media and analysts conference 5
Slide 6: EBIT
Overview of financial year 2018 EBIT Profitability in upper half of mid-term target range (8–10%) CHF million 90 21% 80 70 60 14% 50 40 9.2% 9.3% 9.5% 30 7% 7.4% 7.5% 20 10 EBIT 2016-2018: Swiss GAAP FER 0 0% EBIT-Marge 2014/2015: IFRS 2014 2015 2016 2017 2018 Excellence in Connectivity Solutions 19
Slide 7: Technology segments
Overview of financial year 2018 The three dimensions of our business Sales by technology segments, markets and regions APAC Americas EMEA Communi- Transpor- Industrial cation tation RF Technology segments Radio Frequency Fiber Optics FO Low Frequency LF Markets Excellence in Connectivity Solutions 1
Slide 8: Radio Frequency technology segment
Overview of financial year 2018 Radio Frequency technology segment Double-digit growth – further increased profitability CHF million Key aspects • Order intake and net sales grow at 2018 2017 Δ% double-digit rates • Profitability at a high level Order intake 269.1 239.9 +12.1 • All submarkets develo
Slide 9: Fiber Optics technology segment
Overview of financial year 2018 Fiber Optics technology segment Positive development in net sales – slight improvement in profitability CHF million Key aspects • EBIT margin not yet back at 2018 2017 Δ% previous levels • Technology continues to offer Order intake 347.9 329.2 +5.7 opportunities in di
Slide 10: Low Frequency technology segment
Overview of financial year 2018 Low Frequency technology segment Leap in net sales – EBIT margin nearly doubled CHF million Key aspects • Portfolio adjustment and high 2018 2017 Δ% capacity utilization generate higher profitability Order intake 298.2 257.2 +16.0 • Momentum in Asia and Europe in both
Slide 11: Net sales by market
Overview of financial year 2018 Net sales by market All three main markets grow significantly CHF million 500 +6.7% 400 24% 300 +24.6% 45% +17.8% 2018 200 100 31% 0 Communication Transportation Industrial Communication Transportation 2017 2018 Industrial Excellence in Connectivity Solutions 19 March
Slide 12: Net sales by regions
Overview of financial year 2018 Net sales by regions All three regions with double-digit increase CHF million 400 +11.3% +16.3% 300 37% 200 44% +18.0% 2018 100 19% 0 EMEA (incl. CH) Americas Asia-Pacific EMEA (incl. Switzerland) Americas 2017 2018 Asia-Pacific Excellence in Connectivity Solutions 19
Slide 13: Average number of employees
Overview of financial year 2018 Average number of employees Strong growth in net sales requires moderate increase in number of staff Permanent employees 5000 4352 4198 4000 3789 3866 3584 2221 2407 3000 1954 1994 1700 2000 463 544 629 734 702 1000 1372 1341 1243 1243 1244 Low-cost countries 0 High-c
Slide 14: Agenda
Agenda Overview of financial year 2018 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2019 Urs Ryffel (CEO) 19 March 2019 | Media and analysts conference
Slide 15: Factors impacting order intake
Financial results Factors impacting order intake CHF million +10.1% +0.7% +10.8% 1000 +83.2 million +5.8 million +89.0 million 900 800 700 600 500 909.2 915 400 826 826 300 200 100 0 Order intake 2017 Organic Currency + copper Order intake 2018 Excellence in Connectivity Solutions 19 March 2019 | Me
Slide 16: Factors impacting net sales
Financial results Factors impacting net sales CHF million +13.6% +0.7% +14.3% +105.4 million +5.6 million +111.0 million 900 800 700 600 500 879 885 400 774 774 300 200 100 0 Net sales 2017 Organic Currency + copper Net sales 2018 Excellence in Connectivity Solutions 19 March 2019 | Media and analys
Slide 17: Net sales development by technology
Financial results Net sales development by technology High organic growth in all three technology segments +10.5% +6.9% +28.6% reported +9.9% +8.5% +24.5% organic CHF million 400 338.2 316.2 300 291.4 255.4 231.2 226.6 200 100 0 Radio Frequency Fiber Optics Low Frequency 2017 2018 Excellence in Conn
Slide 18: Gross margin
Financial results Gross margin Gross profit developed proportionally to net sales CHF million 400 40% 35.8% 36.7% 34.6% 34.5% 34.6% 300 30% 200 20% 306 268 270 267 244 100 10% 0 0% 2014 2015 2016 2017 2018 Excellence in Connectivity Solutions 19 March 2019 | Media and analysts conference 18
Slide 19: Operating expenses
Financial results Operating expenses Disproportionately lower increase CHF million 300 30% 27.6% 27.6% 26.7% 26.2% 25.5% 226 214 200 203 200 185 20% 100 10% 0 0% 2014 2015 2016* 2017 2018 Operating expenses in % of net sales *Swiss GAAP FER restated Excellence in Connectivity Solutions 19 March 2019
Slide 20: Factors influencing EBIT
Financial results Factors influencing EBIT CHF million +49.0% -2.1% -5.0% +41.9% +28.5 million -1.2 million -2.9 million +24.4 million 100 80 60 40 82.5 58.1 20 0 EBIT 2017 Organic Currency + copper One-off effects EBIT 2018 Excellence in Connectivity Solutions 19 March 2019 | Media and analysts con
Slide 21: EBIT by technology segments
Financial results EBIT by technology segments All three segments with higher operating result 2018 in % 2017 in % CH million Radio Frequency 40.8 16.0 31.5 13.6 Fiber Optics 20.0 5.9 17.7 5.6 Low Frequency 28.7 9.8 11.6 5.1 Corporate (7.0) (2.7) Total EBIT 82.5 9.3 58.1 7.5 Excellence in Connectivit
Slide 22: Currency development in 2018
Financial results Currency development in 2018 Strengthened Swiss franc in the second half of the year Development vs CHF USD EUR RMB GBP PLN INR AUD BRL 31.12.17 vs Ø 2017 vs 105% 31.12.18 Ø 2018 USD 0.2% -0.5% 100% USD EUR -4.2% 3.2% EUR RMB -4.4% 1.4% 95% RMB GBP GBP -5.8% 2.4% PLN PLN -6.6% 2.9%
Slide 23: Financial result
Financial results Financial result Negative currency effects CHF million (0.7) (2.8) 4 2 0.1 0 (0.8) (2.8) -2 -4 2017 2018 Net currency effect Other financial result Excellence in Connectivity Solutions 19 March 2019 | Media and analysts conference 23
Slide 24: Group income tax rate
Financial results Group income tax rate Significant reduction in effective tax rate 30% 26.6% 25% 23.5% 24.0% 23.0% 20% 15% 10% 5% 0% 2017 2018 Expected tax rate Effective tax rate Excellence in Connectivity Solutions 19 March 2019 | Media and analysts conference 24
Slide 25: Factors influencing net income
Financial results Factors influencing net income Earnings per share (CHF) 2.17 ► 3.15 (46%) CHF million 80 +57.8% -5.0% -7.4% +45.6% +24.4 million -2.1 million -3.1 million +19.2 million 60 40 61.4 20 42.1 0 Net income 2017 EBIT impact Financial result Income tax Net income 2018 Excellence in Connec
Slide 26: Investments
Financial results Investments Below-average spending in 2018, project-related increase expected for 2019/2020 CHF million Investments in % of net sales 50 6% 5.7% 4.9% 5% 40 4.4% 4% 30 3.3% 3.1% 3% 20 2% 10 1% 42 24 32 38 27 0 0% 2014 2015 2016 2017 2018 Amortisation: 30 30 30 31 34 (without M&A amo
Slide 27: Balance sheet
Financial results Balance sheet Significant increase in cash and cash equivalent CHF million 31.12.2018 31.12.2017 30.06.2018 Cash and cash equivalent 199 153 30% 151 Other current assets 332 347 -4% 376 Non-current assets 239 252 -5% 245 Liabilities 149 159 -6% 173 Equity 621 593 5% 599 in % 81% 79
Slide 28: Inventory turnover
Financial results Inventory turnover Improvement thanks to operational progress ITO 3.0 2.8 2.5 2.5 2.5 2.4 2.3 2.0 1.5 2014 2015 2016 2017 2018 Group Excellence in Connectivity Solutions 19 March 2019 | Media and analysts conference 28
Slide 29: Free cash flow
Financial results Free cash flow Improved cash flow from operating activities CHF million 2014 2015 2016* 2017 2018 Cash flow from operating activities 78.0 69.7 79.6 52.9 99.6 Cash flow from investing activities (89.9) (21.8) (57.5) (33.0) (27.8) Free operating cash flow (11.9) 47.9 22.1 20.0 71.7
Slide 30: Dividend development
Financial results Dividend development Steady dividend policy plus additional anniversary dividend CHF million in % 60 90% 79% 79% 80% 50 19.4 70% 40 60% 51% 48% Anniversary dividend 46% 46% 50% 30 Ordinary dividend 40% Payout ratio ordinary dividend in % Dividend payout ratio incl. anniversary divi
Slide 31: Financial assessment 2018
Financial results Financial assessment 2018 Double-digit organic growth in order intake (+10.1%) and net sales (+13.6%) Operating profitability in the upper half of the medium-term EBIT target range (9.3%) Lower income tax rate (23.0%) Very high free operating cash flow (CHF 72 million) Exce
Slide 32: Agenda
Agenda Overview of financial year 2018 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2019 Urs Ryffel (CEO) 19 March 2019 | Media and analysts conference
Slide 33: Focused strategy derived from megatrends and growth drivers
Milestones and outlook 2019 Focused strategy derived from megatrends and growth drivers Growth Opportunities with Megatrends and growth drivers Cornerstones initiatives growth potential Bandwidth Frequency Radio Digitalization CEM1 and Test & Aerospace & Sustainability Measurement Defense Big Data C
Slide 34: Milestones 2018
Milestones and outlook 2019 Milestones 2018 Transportation – Communication – Growth initiative Growth initiative EV Automotive Data Centers HUBER+SUHNER becomes a Delivery of entire fiber optic Tier 1 supplier to Geely, a leading cabling to a German network Chinese electric vehicles operator of two
Slide 35: Outlook 2019 by markets
Milestones and outlook 2019 Outlook 2019 by markets Overall slightly flattening dynamics with opportunities in growth initiatives Communication • LTE rollouts in price-sensitive emerging economies last – 5G network provider position themselves in the market. • Ongoing geographic expansion and intens
Slide 36: Outlook 2019 by technology segments
Milestones and outlook 2019 Outlook 2019 by technology segments Continuity in strategic direction Radio Frequency • Goal 2019: defend previous year’s strong margin and confirm growth path. • Strategic direction: increase market share in high-margin applications; grow stronger than the market in aero
Slide 37: Outlook 2019
Milestones and outlook 2019 Outlook 2019 Net sales guidance for 2019 • From today's perspective, the Group expects net sales at the level of 2018 for the current financial year. Medium-term target range over the business cycle and EBIT guidance for 2018 • Medium-term target range for EBIT margin unc
Slide 38: Agenda
Agenda Overview of financial year 2017 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2018 Urs Ryffel (CEO) 19 March 2019 | Media and analysts conference
Slide 39: Agenda
Agenda Overview of financial year 2017 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2018 Urs Ryffel (CEO) 19 March 2019 | Media and analysts conference
Slide 40: Excellence in Connectivity Solutions
Excellence in Connectivity Solutions