Huber + Suhner Ag · SIX:HUBN
Huber + Suhner — FY2020 Earnings Presentation
39 slides from Huber + Suhner's earnings presentation, Mar 9, 2021
Slide 1: HUBER+SUHNER
HUBER+SUHNER
Slide 2: Media and analysts conference 2021
Media and analysts conference 2021 9 March 2021 | Media and analysts conference 2
Slide 3: Agenda
Agenda Overview of business year 2020 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2021 Urs Ryffel (CEO) Questions and discussion 9 March 2021 | Media and analysts conference 3
Slide 4: HUBER+SUHNER achieves solid results
HUBER+SUHNER achieves solid results Order intake and net sales behind previous year in difficult environment • Noticeable slowdown in the mobile network expansion in the first half of the year, affecting Radio Frequency (RF) and Fiber O ptics (FO) • Delayed entering into service of rolling stock slo
Slide 5: Figures at a glance
Figures at a glance MCHF 2020 2019 Δ% Order intake 748.2 800.9 –6.6 Net sales 737.9 830.6 –11.2 Operating profit (EBIT) 61.2 80.5 –24.0 as % of net sales 8.3 9.7 Net income 52.3 62.8 –16.7 as % of net sales 7.1 7.6 9 March 2021 | Media and analysts conference 5
Slide 6: EBIT
EBIT Profitability within medium-term target range of 8‒10 % MCHF 90 15% 82.5 80.5 80 69.7 70 61.2 60 58.1 10% 9.7% 50 9.5% 9.3% 8.3% EBIT 40 7.5% EBIT margin 30 5% 20 10 0 0% 2016 2017 2018 2019 2020 9 March 2021 | Media and analysts conference 6
Slide 7: Radio Frequency technology segment
Radio Frequency technology segment Strong decline of volumes – double-digit EBIT margin – outlook remains intact MCHF Key aspects 2020 2019 Δ% • Decline in business after several years of growth Order intake 239.5 272.8 –12.2 • A&D growth initiative: market share maintained Net sales 236.3 275.2 –14
Slide 8: Fiber Optics technology segment
Fiber Optics technology segment Business with DC and WAN / Access networks increases – EBIT margin rises significantly MCHF Key aspects 2020 2019 Δ% • WAN / Access networks: acquisition- driven growth Order intake 278.4 274.7 +1.4 • Data center growth initiative shows increase Net sales 269.4 285.6
Slide 9: Low Frequency technology segment
Low Frequency technology segment Lower sales put pressure on EBIT margin – EV solutions sales with strong uptick MCHF Key aspects 2020 2019 Δ% • Railway submarket: high level of bidding activity; delay in the entering Order intake 230.3 253.4 –9.1 into service of new rolling stock • Automotive subma
Slide 10: Net sales by market
Net sales by market All three main markets hit by decline – shares remain stable MCHF 400 300 -8.8% 31% -10.3% -14.8% 39% 2020 200 100 30% 0 Communication Transportation Industry Communication 2019 Transportation 2020 Industry 9 March 2021 | Media and analysts conference 10
Slide 11: Net sales by region
Net sales by region Shift in regional share to EMEA at the expense of APAC and Americas MCHF 500 -3.3% 400 28% 300 2020 54% -18.0% 200 -20.4% 18% 100 0 EMEA (incl. CH) Americas Asia-Pacific EMEA (incl. Switzerland) 2019 Americas 2020 Asia-Pacific 9 March 2021 | Media and analysts conference 11
Slide 12: Agenda
Agenda Overview of business year 2020 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2021 Urs Ryffel (CEO) Questions and discussion 9 March 2021 | Media and analysts conference 12
Slide 13: Factors impacting order intake
Factors impacting order intake MCHF – 42.0 MCHF – 42.2 MCHF + 31.5 MCHF – 52.8 MCHF – 5.2 % – 5.3 % + 3.9 % – 6.6 % 1000 800 600 400 801 748 200 0 Order intake 2019 Organic Currency & copper Portfolio Order intake 2020 9 March 2021 | Media and analysts conference 13
Slide 14: Factors impacting net sales
Factors impacting net sales MCHF – 82.8 MCHF – 41.6 MCHF + 31.7 MCHF – 92.7 MCHF – 10.0 % – 5.0 % + 3.8 % – 11.2 % 1000 800 600 400 831 738 200 0 Net sales 2019 Organic Currency & copper Portfolio Net sales 2020 9 March 2021 | Media and analysts conference 14
Slide 15: Net sales development by technology segment
Net sales development by technology segment Organic reduction at comparable level MCHF – 14.1 % – 5.7 % – 14.0 % reported – 10.3 % – 10.4 % – 8.8 % organic 300 200 100 0 Radio Frequency Fiber Optics Low Frequency 2019 2020 9 March 2021 | Media and analysts conference 15
Slide 16: Gross margin
Gross margin Lower absorption of fixed costs puts pressure on margin MCHF Gross profit Gross margin 320 40% 300 38% 36.7% 36.2% 280 35.4% 36% 34.6% 260 34.5% 34% 240 32% 220 270 267 306 300 261 200 30% 2016 2017 2018 2019 2020 9 March 2021 | Media and analysts conference 16
Slide 17: Operating expenses
Operating expenses Pro-active cost management, higher R&D expenses MCHF 300 Operating expenses in % of net sales 30% 27.6% 27.6% 27.9% 26.8% 25% 25.5% 200 20% 15% 214 226 223 100 203 206 10% 5% 0 0% 2016 2017 2018 2019 2020 9 March 2021 | Media and analysts conference 17
Slide 18: EBIT by technology segment
EBIT by technology segment Increase in Fiber Optics, decline in Radio Frequency and Low Frequency MCHF 2020 in % 2019 in % Radio Frequency 29.5 12.5 47.1 17.1 Fiber Optics 22.4 8.3 18.8 6.6 Low Frequency 15.5 6.7 21.6 8.0 Corporate (6.1) (7.0) Total EBIT 61.2 8.3 80.5 9.7 9 March 2021 | Media and an
Slide 19: Financial result
Financial result Improvement in other financial result MCHF 3 Net currency effects Other financial result 2 (1.7) (0.6) 1 0.7 0 (1.4) (1.3) -1 (0.3) -2 -3 2019 2020 9 March 2021 | Media and analysts conference 19
Slide 20: Group tax rate
Group tax rate Significant reduction of the effective tax rate 25% Expected tax rate Effective tax rate 21.7% 21.1% 20.4% 20% 15% 13.7% Two sustainable effects • R&D special deduction CH 10% • High tech status China production Positive One-time effect 5% • Closure of production site in Brazil (MCHF
Slide 21: Factors impacting net income
Factors impacting net income Earnings per share (CHF) 3.22 ➔ 2.66 (-17%) MCHF – 19.3 MCHF + 1.1 MCHF + 7.7 MCHF – 10.5 MCHF – 30.8 % + 1.8 % + 12.3 % – 16.7 % 70 60 50 40 30 62.8 52.3 20 10 0 Net income 2019 EBIT effect Financial result Income tax Net income 2020 9 March 2021 | Media and analysts co
Slide 22: Investments
Investments Constant level of capital expenditure MCHF 45 Investments in % of net sales 6% 5.1% 4.9% 4.5% 5% 4.4% 30 4% 3.1% 3% 38 38 38 15 32 2% 27 1% 0 0% 2016 2017 2018 2019 2020 9 March 2021 | Media and analysts conference 22
Slide 23: Overview cash flow
Overview cash flow Again high free operating cash flow MCHF 2016 2017 2018 2019 2020 Cash flow from operating activities 79.6 52.9 99.6 129.1 86.5 Cash flow from investing activities (57.5) (33.0) (27.8) (84.0) (36.3) Free operating cash flow 22.1 20.0 71.7 45.1 50.2 Dividend payment (19.5) (24.3) (
Slide 24: Overview Balance sheet
Overview Balance sheet Strong cash position MCHF 31.12.2020 31.12.19 Cash and cash equivalent 204 192 6% Other current assets 288 314 –8 % Non-current assets 249 244 2% Financial liabilities 1 1 –55 % Other liabilities 148 161 –8 % Equity* 592 588 1% in % 80 % 78 % Balance sheet total 740 750 –1 % N
Slide 25: Dividend development
Dividend development Earning-oriented dividend policy MCHF Anniversary dividend 79% 60 80% Ordinary dividend 50 Payout ratio ordinary dividend in % 60% 51% 50% 49% Payout ratio incl. anniversary dividend 40 48% 46% in % 19.5 30 40% 20 20% 10 24.3 21.4 29.2 31.1 25.3 0 0% 2016 2017 2018 2019 2020 Ord
Slide 26: Financial assessment 2020
Financial assessment 2020 Decline in order intake (-6.6%) and net sales (-11.2%) Operating profitability (8.3%) within the medium-term target range despite Covid-19 Very low tax rate (13.7%) Significantly improved free operating cash flow in H2 (MCHF 50 full year) 9 March 2021 | Media and analysts c
Slide 27: Agenda
Agenda Overview of business year 2020 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2021 Urs Ryffel (CEO) Questions and discussion 9 March 2021 | Media and analysts conference 27
Slide 28: Milestones 2020
Milestones 2020 Sustainability Industry Responsible and concrete Timing is everything • With an A – rating, the non-profit • Precision timing and synchronisation organisation CDP has placed the company between cells in mobile networks in the highest of four evaluation categories becomes ever more im
Slide 29: Net sales of MCHF 738 – 2020 distribution
Net sales of MCHF 738 – 2020 distribution by region by technology segment by market 18% 31% 32% 31% 39% 54% 28% 30% 37% EMEA Radio Frequency Communication Asia-Pacific Fiber Optics Transportation Americas Low Frequency Industry 9 March 2021 | Media and analysts conference 29
Slide 30: Reorganisation 2021
Reorganisation 2021 Market segment structure to replace technology segments Two main objectives Increased Simplified market focus structures 9 March 2021 | Media and analysts conference 30
Slide 31: The three dimensions of our business
The three dimensions of our business Segment reporting by three main markets as from H1/2021 P/L P/L P/L Group P/L 9 March 2021 | Media and analysts conference 31
Slide 32: Our solutions for the Industry market
Our solutions for the Industry market Aerospace & Defense General Industrial • Oil & Gas • Chemical • Marine • Medical devices Energy • Mining • Wind energy • High-power charging • Power transmission & distribution Positioning Test & Measurement Connecting challenging and critical applications with
Slide 33: Our solutions for the Communication market
Our solutions for the Communication market Antennas: Special communication In-building communication • Building access / Fiber-in-the-Home Data center • Wireless in-building coverage • Edge data center Mobile communication • Remote radio unit • Active antenna system • Macro cells Positioning • Small
Slide 34: Our solutions for the Transportation market
Our solutions for the Transportation market Rolling stock Trackside communication • In-carriage wiring solutions • Communication-based train control • Inter-carriage wiring solutions Railway stations • Train-to-ground communication • Ground communication Positioning Connecting rail and road mobility
Slide 35: Trends in main markets
Trends in main markets Basic trends and prospects remain intact – stepwise recovery from Covid effects expected Industry • Growing desire for security drive demand for connectivity; need for increased communication in industrial applications • Continued strong dynamics expected for high-power chargi
Slide 36: Outlook 2021
Outlook 2021 From today’s perspective and assuming a comparable exchange rate situation: Net sales guidance for 2021 • HUBER+SUHNER expects growth in net sales for the current financial year to be within the mid-single-digit percentage range. EBIT guidance for 2021 • The operating margin in 2021 is
Slide 37: Agenda
Agenda Overview of business year 2020 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2021 Urs Ryffel (CEO) Questions and discussion 9 March 2021 | Media and analysts conference 37
Slide 38: Connecting – today and beyond
Connecting – today and beyond
Slide 39: 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