Cicor Technologies · SIX:CICN

Cicor Technologies — Investor Day (October 2021)

85 slides from Cicor Technologies's investor day presentation, Oct 6, 2021

1. Slide 1: Capital Markets Day 2021

   Capital Markets Day 2021 Welcome to Bronschhofen October 06, 2021 Daniel Frutig Chairman of the Board of Directors

2. Slide 2: Disclaimer

   Disclaimer October 06, 2021 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 i

3. Slide 3: Introduction: The next chapter of Cicor

   Introduction The next chapter of Cicor  The journey to becoming the leading European EMS provider in selected industries Aerospace & Defence Industrial Medical 3

4. Slide 4: Building blocks for the success of the Cicor Group

   Introduction Building blocks for the success of the Cicor Group  Homework done - The accomplished transformation of Cicor over the last years  Cicor’s differentiated capabilities addressing global trends and opportunities  A highly dynamic EMS market, offering plenty of opportunities  OEP as new

5. Slide 5: Commitment from the Board of Directors

   Introduction Commitment from the Board of Directors Clear Strategy - backed by strong Creating value for shareholders management team and stakeholders  Swiss based - European leading EMS  Performance culture player  Long-term view  Focus on selected industries  Broadening the shareholder base 

6. Slide 6: We wish you a pleasant Capital Markets Day

   We wish you a pleasant Capital Markets Day www.cicor.com/investors info@cicor.com

7. Slide 7: The transformation of Cicor 2016 - 2021

   The transformation of Cicor 2016 - 2021 Capital Markets Day 2021 October 06, 2021 Alexander Hagemann (CEO) Patric Schoch (CFO)

8. Slide 8: Cicor Group today

   Alexander Hagemann Cicor Group today

9. Slide 9: The Cicor Group

   The Cicor Group Leading technology partner for mission-critical high-quality electronics  The Swiss leader in design and manufacturing of advanced electronics  Pioneering microelectronics since 1966 – listed at SIX Swiss Exchange in 1998  Serving OEM customers in the Medical, Industrial, Aerospac

10. Slide 10: Leading technologies for high-end electronics

    Leading technologies for high-end electronics A differentiated offering of products and value adding services The strongest platform in the industry for Realization of advanced electronic devices high precision electronic substrates and microelectronics: along the product lifecycle:  Thin-film and

11. Slide 11: Global footprint

    Global footprint High tech and competitiveness – close to the customer 11

12. Slide 12: Cicor in H1/2021

    Cicor in H1/2021 Financials reflect the recovery from 2020 in a still challenging environment  Sales up 7% to CHF 116.7 million  Material shortages and supply chain disruptions prevented stronger growth  EBITDA margin of 9.9% (PY: 8.5%) exceeds pre-crisis levels (H1 2019: 9.0%)  Order intake up

13. Slide 13: Transformation 2016 - 2021

    Alexander Hagemann Transformation 2016 - 2021

14. Slide 14: History

    History Building up group competencies 14

15. Slide 15: Restructuring into a more agile organization

    Transformation of Cicor 2016 - 2021 Restructuring into a more agile organization  Eliminated two management layers for increased customer focus and decision making speed  Reduced group management positions from 4 to 2  Focus on value adding positions 2016 2021 15

16. Slide 16: Footprint optimization in Switzerland

    Transformation of Cicor 2016 - 2021 Footprint optimization in Switzerland  From 7 to 3 sites in Switzerland  Consolidation of PCB production to Boudry NE  New HQ and production site in Bronschhofen SG – improving processes and productivity  Integration of 2 production sites and 2 offices into th

17. Slide 17: CRM and new business pipeline management

    Transformation of Cicor 2016 - 2021 CRM and new business pipeline management Annual sales opportunity from quoted new business  2017: Group-wide CRM 300%  2018: Systematic pipeline management 250%  Quick-wins through cross-selling 200%  Joint projects between AMS and ES divisions  25% CAGR of n

18. Slide 18: Operational excellence

    Transformation of Cicor 2016 - 2021 Operational excellence  Quality and QDM  Focus on overall equipment efficiency (OEE)  Disciplined NWC management and capital spending  Lean conversion  SAP roll-out to Batam (Indonesia) and Singapore 18

19. Slide 19: Financial performance 2016 - 2020

    Patric Schoch Financial performance 2016 - 2020

20. Slide 20: Successfully growing profitably

    Successfully growing profitably Focus on profitable market segments is showing results Net Sales in MCHF EBITDA in MCHF Net Profit in MCHF +4.9 +14.4 +14.5 +2.3 -15.4 6.7 8.9 9.9 9.8 9.0 0.7 3.1 3.9 3.3 1.9 Sales growth in % in % of sales in % of sales 248.1 253.9 216.7 214.9 24.8 24.6 189.5 19.2 19

21. Slide 21: Focus on capital efficiency and on strengthening the balance sheet

    Focus on capital efficiency and on strengthening the balance sheet Financial capability for larger transformational M&A consistently improved PPE Investments in MCHF Operating Cash Flow in MCHF Net Debt in MCHF 4.4 3.9 7.6 5.5 2.4 1.71x 1.02x 1.14x 0.67x 0.70x in % of sales NetDebt/EBITDA ratio 28.5

22. Slide 22: Higher capital efficiency supports improvement in ROIC

    Higher capital efficiency supports improvement in ROIC Generating returns on capital invested as a clear focus of management Net Operating Assets in MCHF NOPAT in MCHF ROIC in % 58 54 54 51 62 1.1 3.9 4.8 4.5 3.1 in % of sales in % of sales 133.0 129.2 133.1 11.8 11.5 8.9 8.9 117.6 109.2 7.3 8.5 6.6

23. Slide 23: Thank you for your attention

    Thank you for your attention www.cicor.com/investors info@cicor.com

24. Slide 24: Cicor's position in the electronics manufacturing market

    Cicor’s position in the electronics manufacturing market Capital Markets Day 2021 October 06, 2021 Stefan Koller VP Global Account Management

25. Slide 25: Agenda

    Agenda Cicor’s position in the electronics manufacturing market  What is the “Electronic Manufacturing Market”  Global volume of the EMS market  Target Markets  Cicor’s position in the target markets  USP’s of Cicor  Examples 25

26. Slide 26: EMS (Electronics Manufacturing Services) market

    EMS (Electronics Manufacturing Services) market Introduction  EMS = companies that provides value added engineering, manufacturing and after sales services  First EMS companies launched in the 70s with the aim of:  handling the manufacturing overflow from OEMs  Provide manual assemblies cheaper

27. Slide 27: Cicor's position in the global EMS market

    Cicor’s position in the global EMS market Overview EMS Revenue ($M)  Top 10 EMS providers are: 1-Foxconn (Hon Hai) 2 - Pegatron  Accountable for around 73% of the 3 - Wistron global market 4 - Jabil 5 - Flex  Mainly focused on CCC markets 6 - BYD Electronics (Communication, Computer & 7 - Univers

28. Slide 28: Target markets

    Target markets Cicor Group  Focused on the European market  Focused on sectors with high value add  Focused on high mix and low to middle volume business Medical Industrial Aerospace and Defence 28

29. Slide 29: Cicor's position compared to our direct competitors

    Cicor’s position compared to our direct competitors A.I.M. sectors in Europe EMS Revenue in target markets ($M)  Strong position in the A.I.M. target sectors 1 - Zollner  81% of Cicor revenue is generated in the 2 - Enics 3 - Scanfil A.I.M. target sectors 4 - GPV Group  We are on rank 14 the A.I.

30. Slide 30: USP of Cicor: range of services and technologies

    USP of Cicor Wide range of services and technologies along the whole product lifecycle Product development NPI HW/SW development Life cycle management Supplier evaluation Mechanical design Procurement Test concepts Test development Development Redesign Toolmaking Prototyping Industrialization Valida

31. Slide 31: USP of Cicor: Global footprint

    USP of Cicor Global footprint 31

32. Slide 32: Example – Range of services and technologies

    Example – Range of services and technologies Lateral Flow Assay Reader Scope of services:  Engineering Services  Risk management according ISO14971  Hardware development  Software development  Support in product certification (EMC/RF, safety and IEC62304)  Industrialization  Test Engineering

33. Slide 33: Example – Global footprint

    Example – Global footprint Sewing machine manufacturer Scope of services:  Industrialization  Test Engineering  Mold design and manufacturing  NPI support in Switzerland  Production  PCB assembly in Switzerland and Romania for customer demand in Europe  PCB assembly in Vietnam for customer de

34. Slide 34: Thank you for your attention

    Thank you for your attention www.cicor.com/investors info@cicor.com

35. Slide 35: Technology trends and innovation

    Technology trends and innovation Capital Markets Day 2021 October 06, 2021 Karl-Heinz Fritz VP Development & Technology

36. Slide 36: Agenda

    Agenda Technology trends and innovation  Digitalization  Miniaturization  Additive manufacturing  Functional integration 36

37. Slide 37: Digitalization / Industry 4.0

    Digitalization / Industry 4.0 QDM System for assembly sites 37

38. Slide 38: Technology Driver: Miniaturization

    Technology Driver Miniaturization Passive Components Circuit Technology Present 008004 Component Type 01005 (0.40mm x 0.25mm x 0.25mm) 1990`s 3.5mm 38

39. Slide 39: Miniaturization: Evolution of active components

    Miniaturization Evolution of active components Through hole Surface mounted Ball grid array Micro ball technology device grid array 39

40. Slide 40: Miniaturization: Incremental innovation

    Cicor Circuit Technologies Human hair Miniaturization Incremental innovation Present PCB Technology Thickfilm Technology Thinfilm Technology Disruptive innovation PCB Technology Future Thickfilm Technology 10 25 50 75 100 Feature size in mm 40

41. Slide 41: Innovation: Incremental vs. Disruptive

    Innovation Incremental vs. Disruptive Implementation of new manufacturing Incremental innovation: use of Disruptive Innovation: new technology, using existing established manufacturing processes manufacturing processes known manufacturing processes, reshuffeling + continuously improved materials, fr

42. Slide 42: Additive Manufacturing

    Additive Manufacturing Aerosol Jet Printing Circuit Technology Ceramic Circuits  Printing of passive  Enabling additional components design features  Printing of coatings  New materials  Streamlining  3D ceramic circuits production process Plastics EMS  Printing of conductive  Alternatives t

43. Slide 43: Additive Manufacturing: Application examples

    Additive Manufacturing Application examples Inductive coil and printed capacitors to Capacitive sensor for on body Bio-compatible gold structures make stents visible on MRI during detection of (medical) devices printed on plastic foils, used for placement neurostimulation Catheter tip with a diamete

44. Slide 44: Functional integration

    Functional integration Embedding of components  Chip embedded in plastic  Injection molded  Component connected by electronic printing  Embedded component in flex circuit  No additional soldering process  Thinfilm circuitry  Component placement done using microsystems  Suitable for temperatu

45. Slide 45: Thank you for your attention

    Thank you for your attention www.cicor.com/investors info@cicor.com

46. Slide 46: Winning and retaining customers through engineering services

    Winning and retaining customers through engineering services Capital Markets Day 2021 October 06, 2021 Andreas Thomann Head of R&D Services

47. Slide 47: Overview of engineering services

    Overview of engineering services Winning and retaining customers through engineering services Process & component R&D services Test engineering engineering  Research in technologies  Integrated test concepts  Production technology  Product development  Test systems development  Production proc

48. Slide 48: The role of EMS companies

    The role of EMS companies In the life cycle and value chain of a product Business Case Research and NPI PCBA Device Distribution Marketing & After-sales and Use Product Assembly Assembly Sales services Specification Development Product Idea Research Process Purchasing Device Assembly Packaging Marke

49. Slide 49: Segmentation of customers

    Segmentation of customers Development and engineering competences and needs Requested Development Development NPI Strategy Support Typically big  In-house  Resource companies electronics & balancing in software HW/SW Process development development Engineering and  Focus on new  Sustaining Valid

50. Slide 50: Advantage of outsourcing engineering services

    Advantage of outsourcing engineering services From the customer’s point of view  Focus on the application and the market Business Case Research and NPI PCBA Device Distribution Marketing & After-sales and Use Product Assembly Assembly Sales services Specification Development Focus on the applicatio

51. Slide 51: Advantages of offering engineering services for EMS companies

    Advantages of offering engineering services for EMS companies Value added Business Case Research and NPI PCBA Device Distribution Marketing & After-sales and Use Product Assembly Assembly Sales services Specification Development Product Idea Research Process Purchasing Device Assembly Packaging Mark

52. Slide 52: Advantages for Cicor: Customer binding

    Advantages for Cicor Customer binding Business Case Research and NPI PCBA Device Distribution Marketing & After-sales and Use Product Assembly Assembly Sales services Specification Development Product Idea Research Process Purchasing Device Assembly Packaging Marketing Support services Engineering a

53. Slide 53: Customer binding – Example: Regulatory involvement

    Advantages for Cicor Customer binding – Example: Regulatory involvment Business Case Research and NPI PCBA Device Distribution Marketing & After-sales and Use Product Assembly Assembly Sales services Specification Development Product Idea Research Process Purchasing Device Assembly Packaging Marketi

54. Slide 54: Customer binding – Example: Test development

    Advantages for Cicor Customer binding – Example: Test development Business Case Research and NPI PCBA Device Distribution Marketing & After-sales and Use Product Assembly Assembly Sales services Specification Development Product Idea Research Process Purchasing Device Assembly Packaging Marketing Su

55. Slide 55: Customer binding – Example: Product development

    Advantages for Cicor Customer binding – Example: Product development Acquired application and market know-how Business Case Research and and Use Product Specification Development Product Idea Research Output: - Production Business Case Usability data Engineering - Firmware Application Know-how Softw

56. Slide 56: Customer binding – Example: Product development

    Advantages for Cicor Customer binding – Example: Product development Acquired application and market know-how Business Case Research and NPI and Use Product Specification Development Product Idea Research Process Output: Engineering and - Production Business Case Usability Validation data Engineerin

57. Slide 57: Customer binding – Example: Product development

    Advantages for Cicor Customer binding – Example: Product development Acquired application and market know-how Business Case Research and NPI PCBA Device and Use Product Assembly Assembly Specification Development Product Idea Research Process Purchasing Device Assembly Output: Engineering and - Prod

58. Slide 58: Conclusion: Long term relations with customers

    Conclusion: Long term releations with customers Application example  Development of the control units (electronics and firmware) for more than 12 years  Test development, components and process engineering for all of the products (about 35 different PCBAs and modules)  Series manufacturing of sev

59. Slide 59: Thank you for your attention

    Thank you for your attention www.cicor.com/investors info@cicor.com

60. Slide 60: Q&A session

    Q&A session Do you have any questions?

61. Slide 61: Break

    Break See you again in 15 minutes

62. Slide 62: Opportunities in electronics manufacturing

    Opportunities in electronics manufacturing Capital Markets Day 2021 October 06, 2021 Konstantin Ryzkov Managing Director OEP 80 B.V. Member of the BoD Cicor Technologies Ltd.

63. Slide 63: OEP - Introduction

    OEP - Introduction OEP is a middle market PE firm focused on transformative combinations in the industrials, healthcare and technology sectors  Formed originally in 2001 as Bank One / JPMorgan private equity team and fully independent since 2015 Firm  Senior and experienced investment team with lo

64. Slide 64: OEP - Focus on Transformational Add-ons

    OEP - Focus on Transformational Add-ons

65. Slide 65: OEP - Expansive Sector Expertise

    OEP - Expansive Sector Expertise Over the past 20 years, OEP has become an experienced investor with deep domain expertise in a variety of sectors Telecom & Food / Ag Manufacturing Packaging Internet Technology Pharma / Health Media Distribution / Business Chemicals Energy Metals / Mining Travel Aut

66. Slide 66: Global EMS Market is Poised for the Next Boom

    Global EMS Market is Poised for the Next Boom Driven by 5G and increased outsourcing model EMS Industry Revenue Growth/ Forecast ($bn) EMS to benefit from the interconnectivity development driven by 5G • The global EMS market is expected to show a CAGR of 5% reaching $633bn by 2024 • The EMS exhibit

67. Slide 67: Highly Fragmented European Market Shows Potential for Consolidation

    Highly Fragmented European Market Shows Potential for Consolidation European EMS provider landscape EMS revenues by industry (€m) Commentary • Highly fragmented industry in Europe with a diverse landscape of EMS players Total Market • Consolidation will continue to change the structure of the Europe

68. Slide 68: M&A Activity in European EMS

    M&A Activity in European EMS There has been increasing M&A activity in Europe, driven by both, financial investors and strategic buyers Date Target Country Buyer Revenues (€m) 2021 Neways Netherlands Investos 470 2021 JJS Manufacturing UK Escatec 82 2020 AsteelFlash France USI 1000 2020 AWS Electron

69. Slide 69: Thank you for your attention

    Thank you for your attention www.cicor.com/investors info@cicor.com

70. Slide 70: The next chapter of Cicor 2021 - 2025

    The next chapter of Cicor 2021 - 2025 Capital Markets Day 2021 October 06, 2021 Alexander Hagemann CEO

71. Slide 71: Cicor strategy

    Cicor strategy Five pillars to define the future of Cicor Benefiting Differentiation Platform, Brand Governance, Profitable from & Market & Innovation Team Growth megatrends Leadership 71

72. Slide 72: A growing market

    A growing market The electronics super-cycle is driven by demand for the connection of everything Benefiting from megatrends Source: Lincoln International, June 2020 72

73. Slide 73: A growing market: Megatrends support growth

    A growing market Megatrends support the growth of Cicor 1. Ever growing demand for electronics and digital devices worldwide 2. OEM focusing on their core competency, share of outsourced manufacturing Benefiting increases from megatrends 3. Nearshoring, Reshoring and alternatives to China: Cicor is

74. Slide 74: Market focus

    Market focus Cicor operates in markets with highest customer stickiness  Entry barriers for competitors in mission-critical applications through engineering partnerships, validation cycles, government regulations Differentiation & Market Leadership 74

75. Slide 75: Differentiated business model

    Differentiated business model Unique combination as solution provider and technology leader with flawless execution Differentiation & Market Leadership 75

76. Slide 76: Growing market share

    Growing market share Strong position in Switzerland and in D-A-CH with room to grow across Europe  Electronic manufacturing requires customer closeness  Strong position in CH and D-A-CH, European No. 14 in target markets Differentiation & Area of highest Market leader Market customer overall conce

77. Slide 77: A strong platform for organic growth and industry consolidation

    Cicor strategy A strong platform for organic growth and industry consolidation  A one-stop-shop with unmatched depth of value added for the customers: Consulting – Engineering – Technologies – Execution Platform, Brand  Journey from “exchangeable supplier” to “integral value chain partner” & Innov

78. Slide 78: High standards in corporate governance

    High standards in corporate governance New anchor shareholder and strengthened Board of Directors  OEP a well-networked anchor shareholder, industry-savvy and ready to leverage synergies within its complementary portfolio Governance,  BoD with high governance standards Team  Experienced new indep

79. Slide 79: Growing in the most attractive segment of electronics manufacturing

    Growing in the most attractive segment of electronics manufacturing Targeted markets with significant potential for further organic growth combined with acquisitions  The full addressed markets represent USD 17.5bn of which Cicor targets non- commodity opportunities (high-tech, high-mix, low to med

80. Slide 80: Growing in the most attractive segment of electronics manufacturing

    Growing in the most attractive segment of electronics manufacturing Cicor operates in the sweet-spot of scale combined with attractive margins EBITDA Margin Tier 3: High Mix / Low Volume A.I.M. Profitable 12% Tier 4: Small local players Growth 10% EMS Tier 2: Low Mix / High Vol. A.I.M. EMS EMS EMS 8

81. Slide 81: Aiming for European top position in target markets

    Aiming for European top 3 position in target markets Driving industry consolidation in Europe with a focus on highly profitable niche manufacturers  Cicor is well positioned for organic growth above the market growth rate of 5% (CAGR 2019-2024 of selected target markets) Profitable  Cicor’s strong

82. Slide 82: Thank you for your attention

    Thank you for your attention www.cicor.com/investors info@cicor.com

83. Slide 83: Lunch break

    cicor Lunch break Enjoy your meal

84. Slide 84: Cicor site in Bronschhofen (Switzerland)

    Cicor site in Bronschhofen (Switzerland) Visit of the production facilities in four groups  During site visit it is not allowed to take any pictures/videos  This environment is sensitive to electrostatic discharge - please do not touch anything  Protective clothing is mandatory 84

85. Slide 85: Capital Markets Day 2021

    Capital Markets Day 2021 Thank you for your visit October 06, 2021 Daniel Frutig Chairman of the Board of Directors

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