Huber + Suhner AG · SIX:HUBN
Huber + Suhner — FY2012 Earnings Presentation
21 slides from Huber + Suhner's earnings presentation, Mar 12, 2013
Slide 1: Agenda; Business year 2012 at a glance
Agenda 2012 – A year of transition and of contrasts Overview Dr. David W. Syz (Chairman of the Board of Directors) Business year 2012 Urs Kaufmann (CEO) Financial performance Ivo Wechsler (CFO) Outlook Urs Kaufmann (CEO) Questions and discussion Buffet lunch 12 March 2013 | Media and analysts’ confe
Slide 2: 2012: Year of transition; 3x3 Strategy
Overview 2012: Year of transition Adjustment to new currency and market situation Market Solar Finan- Cur- recovery crisis / Strong growth phase cial rency + solar FTTA crisis crisis boom boom CHF million Net sales Excellence in Connectivity Solutions 12 March 2013 | Media and analysts’ conference 3
Slide 3: Value-added chain adjustments; Dividend slightly above target band
Overview Adjustments to value-added chain – close to customers worldwide • Same quality worldwide • Short delivery routes • Right activity in the right location Excellence in Connectivity Solutions 12 March 2013 | Media and analysts’ conference 5 Overview Dividend slightly above target band – a sign
Slide 4: Election to the Board of Directors
Overview Election to the Board of Directors The Board of Directors proposes Dr. Christoph Fässler for election as successor to Adrian Déteindre who is not standing for re-election for age-related reasons Personal details • 60-year-old Swiss citizen • Doctorate in chemical engineering from ETH • Sinc
Slide 5: 2012: A year of contrasts
Business year 2012 2012: A year of contrasts • Slump in the solar market • Boom in the FTTA application • Low Frequency in the red • Fiber Optics sees best result ever • Slump in China • Record net sales in North America • Lower net sales • (Slightly) improved order intake • Weak first term • Strong
Slide 6: Figures at a glance
Business year 2012 Figures at a glance CHF million 2012 2011 ∆% Order intake 747.9 734.5 2 Net sales 698.1 758.5 –8 Operating profit (EBIT) 24.5 66.1 –63 • as % of net sales 3.5 8.7 Operating profit (EBIT) 31.5 50.2 –37 (excluding special effects) • as % of net sales 4.5 6.6 Net income 21.8 49.8 –56
Slide 7: Employees; Net sales development of the divisions
Business year 2012 Number of employees at year end almost unchanged – Average number of employees falls in line with net sales Permanent employees Ø 3692 Ø 3492 Ø 3950 Ø 4044 Ø 3798 4062 3867 3879* 3614 3592 Low-cost countries High-cost countries Switzerland *incl. H+S Astrolab (117 persons) Excelle
Slide 8: Radio Frequency and Fiber Optics divisions
Business year 2012 Radio Frequency division: Net sales fall slightly – income improved Key aspects • Flat development overall CHF million • Book-to-bill approx. 1 2012 2011 ∆% • Gross margin slightly improved Order intake 218.1 223.8 –2.5 • Overhead costs reduced Net sales 215.8 222.3 –2.9 • New div
Slide 9: Low Frequency division; Net sales by market
Business year 2012 Low Frequency division: Extreme slump in solar – slides into the red Key aspects • A very difficult business year CHF million • Book-to-bill approx. 1 2012 2011 ∆% • Gross margin under pressure due to Order intake 279.7 371.5 –24.7 operation at below full capacity Net sales 274.0
Slide 10: Net sales by region; Astrolab key data
Business year 2012 Europe weakens / Asia falls further behind / America booms CHF million 500 400 –10% 300 2012 200 –35% +94% 100 0 EMEA (incl. Asia-Pacific Americas Switzerland) EMEA (incl. Switzerland) 2011 Asia-Pacific 2012 Americas Excellence in Connectivity Solutions 12 March 2013 | Media and a
Slide 11: Astrolab technology and strategic fit
Business year 2012 Technology • High-quality PTFE tape-wrapped RF cable technology • Broad range of solutions in the field of miniaturisation: minibend® (patented) • Very high frequencies: >70GHz, first products with 110 GHz • Cables for challenging applications: >3 million bending cycles (everflex)
Slide 12: Attractive markets; Conclusion 2012
Business year 2012 Strategically well positioned in attractive markets Astrolab brings momentum to high-tech niches Broadband communication Electromobility Renewable energy High-tech niches Excellence in Connectivity Solutions 12 March 2013 | Media and analysts’ conference 23 Business year 2012 Conc
Slide 13: Factors impacting on the top line
Agenda Overview Dr. David W. Syz (Chairman of the Board of Directors) Business year 2012 Urs Kaufmann (CEO) Financial performance Ivo Wechsler (CFO) Outlook Urs Kaufmann (CEO) Questions and discussion Buffet lunch 12 March 2013 | Media and analysts’ conference Financial performance Factors impacting
Slide 14: Gross margin; Operating expenses
Financial performance Gross margin contained at low level CHF million 400 40% 37.6% 36.1% 35.6% 301.0 300 274.6 35% 238.4 225.0 214.6 200 31.4% 30.7% 30% 100 25% 0 20% Gross profit 2008 2009 2010 2011 2012 Gross margin Excellence in Connectivity Solutions 12 March 2013 | Media and analysts’ conferen
Slide 15: Factors impacting on the EBIT; Currency effects
Financial performance Factors impacting on the EBIT -24 million -23 million -42 million +5 million CHF million -36% -35% -63% +8% EBIT Organic Currency One-off EBIT 2011 + copper effects 2012 Excellence in Connectivity Solutions 12 March 2013 | Media and analysts’ conference 29 Financial performance
Slide 16: Tax rate; Factors impacting on the bottom line
Financial performance Positive one-off effect generates a tax revenue 25% 20.4% 20% 19.2% 17.7% 15% 10% 5% 0% 2011 2012 -5% -2.9% Anticipated tax rate Effective tax rate Excellence in Connectivity Solutions 12 March 2013 | Media and analysts’ conference 31 Financial performance Factors impacting on
Slide 17: Effects of acquiring Astrolab; Investments
Financial performance Effects of acquiring Astrolab CHF million Net asset values acquired 8 Intangible assets from acquisition* 18 Goodwill 24 Purchase price 50 * Customer relationships, technology, trademark: additional annual amortisation and depreciation of CHF 2.1 million ► Astrolab performance
Slide 18: Strong consolidated balance sheet; Cash flow
Financial performance Strong consolidated balance sheet CHF million 2012 as % 2011 as % 2010 as % Cash and cash equivalents 85 12 178 24 206 29 Other current assets 345 48 341 47 323 45 Fixed assets 292 40 207 29 185 26 Debt 0 n/a 0 n/a 0 n/a Various liabilities 146 20 153 21 164 23 Shareholders’ eq
Slide 19: Current challenges and opportunities
Agenda Overview Dr. David W. Syz (Chairman of the Board of Directors) Business year 2012 Urs Kaufmann (CEO) Financial performance Ivo Wechsler (CFO) Outlook Urs Kaufmann (CEO) Questions and discussion Buffet lunch 12 March 2013 | Media and analysts’ conference Outlook Current challenges and opportun
Slide 20: Anticipated development 2013; Outlook 2013
Outlook Anticipated development in 2013 compared with 2012 APAC Americas EMEA Commu- nication Transport- Industrial ation RF Technology Radio Frequency FO Fiber Optics Low Frequency LF Markets Excellence in Connectivity Solutions 12 March 2013 | Media and analysts’ conference 39 Outlook Outlook 2013
Slide 21: Agenda
Agenda Overview Dr. David W. Syz (Chairman of the Board of Directors) Business year 2012 Urs Kaufmann (CEO) Financial performance Ivo Wechsler (CFO) Outlook Urs Kaufmann (CEO) Questions and discussion Buffet lunch 12 March 2013 | Media and analysts’ conference Excellence in Connectivity Solutions