Scanfil Oyj · OMXHEX:SCANFL
Scanfil Oyj — Investor Day (September 2024)
56 slides from Scanfil Oyj's investor day presentation, Sep 20, 2024
Slide 1: Scanfil Malmö safety instructions
Scanfil Malmö safety instructions There are no fire drills planned during the day. If the fire alarm should go off, please follow Your host and leave the building through the nearest exit. Our evacuation point is on Mio parking lot just across the street. If you get separated from Your host, make yo
Slide 2: Agenda
Agenda 9:00-9:05 IR & Comms Director Pasi Hiedanpää, Scanfil: Opening 9:05-10:00 CEO Christophe Sut, Scanfil: Company in brief, strategy and financial targets 10:00-10:45 SVP Operations Joakim Birgersson, INVISIO: Introduction to INVISIO 10:45-10.55 Break 10:55-11:40 MD Carl-Johan Forsberg, Scanfil
Slide 3: Geared for growth
Slide 4: Scanfil milestones of growth
Scanfil milestones of growth Industrial Telecom Merger with electronics Jorma J. Takanen represented Wecan represented Acquisition Acquisition Acquisition Turnover >900 founded Scanfil Oy 80% of the sales Electronics 75% of the sales Schaltex PartnerTech HASEC MEUR 1976 1991 2001 2002 2012 2014 2015
Slide 5: Scanfil positioning – what we do?
Scanfil positioning – what we do? Low to mid High Mix Industrial PCBAs Box build System volume clients integration Manufacturing Medtech & Life Science Clients leaders in their connect services and Energy & Cleantech field or with high areas in focus potential to grow CONFIDENTIAL 20-Sep-24 5
Slide 6: Scanfil's global footprint
Scanfil’s global footprint Åtvidaberg, Sweden Sievi, Finland Malmö, Sweden Pärnu, Estonia Atlanta, USA Wutha, Germany Myslowice, Poland Suzhou, China Sieradz, Poland 3% 7% 18 % Poland 9% China 38 % Industrial Estonia 47 % Energy & Sweden 12 % Employees Cleantech Customers Finland Medtech & Life Germ
Slide 7: Strong growth in the past – 2024 more challenging
Strong growth in the past – 2024 more challenging CAGR 15.4% 1 000 901,6 843,8 750 695,7 579,4 595,3 563 508 529,9 500 377,3 394,4 250 214,5 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 7
Slide 8: Solid margin improvement
Solid margin improvement MEUR CAGR 14.2 % 61,3 8% 60 7,6 % 7% 6,7 % 6,8 % 6,8 % 6,8 % 6,6 % 5,9 % 45,4 6% 5,8 % 45 40,3 5,4 % 5,3 % 39,4 39,1 37,8 5% 4,4 % 31,3 4% 30 26,6 22,3 3% 19,6 16,2 15 2% 1% 0 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 8
Slide 9: Key indicators
Key indicators Return on equity Equity ratio 25% 22,2 % 21,5 % 80% 70,6 % 21,1 % 19,6 % 70% 20% 18,0 % 16,1 % 60% 54,3 % 53,7 % 55,4 % 15,2 % 15,3 % 47,7 % 49,1 % 45,3 %45,3 % 14,0 % 50% 15% 40,7 %40,7 % 40% 33,4 % 10% 8,6 % 30% 20% 5% 10% 0,1 % 0% 0% Gearing Growth capacity 70% 65,4 % 1 600 60% 1 4
Slide 10: We are geared for growth
We are geared for growth SCANFIUL
Slide 11: Vision, Mission, Values
Vision Mission Values Your global, most preferred supply chain and manufacturing partner Scanfil helps customers to succeed by providing effective and innovative solutions that bring products from idea to life and maintain product competitiveness over the lifespan Qos Pp © Customer Achieving Empower
Slide 12: New Management Team with regional representatives
New Management Team with regional representatives Management team structure August 2024 Management team structure 2025 CEO CEO Chief Financial Chief People Chief Financial Chief People Officer Officer Officer Officer Chief General Technology Chief Chief Counsil Officer Officer Officer Chief Commerci
Slide 13: Regions empowered with clear target setting
Regions empowered with clear target setting Americas APAC Turnover: <50 M€ Turnover <200 M€ Operating margin: <7% Operating margin: >7% Targets: (i) Secure growth of electronics manufacturing (ii) Find Target: Create growth outside of M&A target in USA or Mexico China in Asia Pacific Region Central
Slide 14: New regions increases transparency and enables faster growth
New regions increases transparency and enables faster growth • Increases transparency • Increases autonomy in decision-making • Turnover and operating profit • Regions/sites with own strategy • Comparison figures in Q1 2025 • Responsibility for regional growth and profitability • Customer segment re
Slide 15: Regions to take initiative in M&A
Regions to take initiative in M&A Target company profile • Turnover <100 MEUR • High mix low/medium volume: Medtech & Life Science, Energy & Cleantech, Industrial and Defense • Markets: Central Europe, Americas & Asia Continuous M&A • Quality asset accreditive to EPS (or turn Several small to medium
Slide 16: Geared for growth 2024−2028
Geared for growth 2024−2028 Scanfil Way Growth Efficiency Segment Geographical Offering Acquisitions Dream Productivity Supply chain focus expansion factory excellence Strategic Enablers Risk Financing Sustainability IT / Data Investor relation management Culture and People 20-Sep-24 16
Slide 17: Customer diversification
Customer diversification 100% 13% 12% 90% 19% 80% 18 % 70% 42% 42% 36% 60% 50% 47 % 40% 35 % 30% 45% 45% 46% 20% 10% Industrial Energy & Cleantech 0% Medtech & Life Science 2022 2023 H1 2024 Rest TOP10 (ex. Biggest) The biggest customer 20-Sep-24 17
Slide 18: Segment development in Industrial
Segment development in Industrial Turnover Won deals in H1/2024 Biggest won deals in H1/2024 Y/Y: -19.6% 120 30 24,8 12.1 MEUR Defense 100 25 80 20 4.4 MEUR Process industry 60 15 1.3 MEUR Defense 9,3 40 10 … … 20 5 34.1 MEUR In total 0 0 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q
Slide 19: Segment development in Energy & Cleantech
Segment development in Energy & Cleantech Turnover Won deals in H1/2024 Biggest won deals in H1/2024 Y/Y: -26.1% 25 22,8 100 10.4 MEUR EV charging 20 75 15 7.5 MEUR General 15 50 6.8 MEUR Energy efficiency 10 … … 25 5 37.8 MEUR In total 0 0 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23
Slide 20: Segment development in Medtech & Life Science
Segment development in Medtech & Life Science Turnover Won deals in H1/2024 Biggest won deals in H1/2024 Y/Y: -4.9% 9 45 8,1 8 7 3.1 MEUR Laboratory equipment 30 6 4,5 1.8 MEUR Analytical instruments 5 4 1.5 MEUR Life Science 15 3 2 … … 1 12.6 MEUR In total 0 0 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4
Slide 21: Sustainability targets
Sustainability targets Target SDG Area Targets 2020 2021 2022 2023 Q1/2024 Q2/2024 2030 13 Climate Action CO2 emissions (tCO2e) 16,853 16,144 10,246 8,845 2,253 2,266 8,500 Reduce CO2 / value-add by more 13 Climate Action n/a -10 % -42 % -62% -60% -59% -60% than 60% Increase the share of fossil-free
Slide 22: Outlook and focus in 2024
Outlook and focus in 2024 We expect our turnover to be EUR 780–840 (820–900) million and adjusted operating profit to be EUR 54–61 (57–65) million. Focus areas: • Build up sales pipeline with special focus on Energy & Cleantech and Medtech & Life Science • Secure profitability with focus on cost bas
Slide 23: Long-term financial targets
Long-term financial targets TURNOVER PROFITABILITY DEBT DIVIDEND Growth 10% EBIT 7%-8% Net Debt/EBITDA <1.5x 1/3 of EPS NOTE: Targets are per annum, but set over the business cycle 20-Sep-24 23
Slide 24: Q&A
SCANFIL Q&A
Slide 25: INVISIO – a partner to Scanfil
Protection at INVISIO – A PARTNER TO SCANFIL work, a better life at Scanfil CMD Malmö, September 20, 2024 SVP Operations Joakim Birgersson home 25
Slide 26: INVISIO
Inadequate communication and substandard hearing INVISIO protection in critical and noisy environments are often the case for many professionals. Our mission is to increase our users' safety and protect their hearing. 2 6
Slide 27: INVISIO
Or said differently: To enable communication and protect hearing - in mission critical INVISIO environments. 2 7
Slide 28: INVISIO financials in figures
INVISIO INVISIOfinancials in figures • Antal anställda • Omsättning • Vinst • CAGR • Market cap Revenue 2023: EBIT margin 2023: Number of Listed on Nasdaq SEK 1.2 billion. 19.6% employees: Stockholm 280 5-year CAGR: 5-year average Market cap: 28% margin exceeds SEK 11 billion 15%
Slide 29: INVISIO in brief
INVISIO in brief HQ in Copenhagen. Two primary Close collaboration Scalable business Sales offices in the customer groups: with customers in model with US, UK, France, Defense and product outsourced Italy and Thailand. Public Safety development. manufacturing. (Law enforcement officers and firefight
Slide 30: Market drivers and long-term growth trends
Market drivers and long- term growth trends Structural growth … more and more Greater awareness More powerful Increased due to soldiers are about hearing loss weapon systems military spending modernization equipped with a and its effects. and greater over the next programs and … personal radio. dema
Slide 31: INVISIO & Scanfil history
INVISIO AND PARTNERTECH FORM PARTNERSHIP INVISIO (Nextlink) founded 1999 and became a customer of Partnertech Vellinge AB. 1999 - 2008 2011 2013 2014 2015 2017 2018 2019 2020 2021 2023 2024 31 INVISIO & Scanfil history COMPANY CONFIDENTIAL
Slide 32: PartnerTech
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Slide 33: INVISIO & Scanfil history
INVISIO AND PARTNERTECH FORM PARTNERSHIP INVISIO (Nextlink) founded 1999 and became a customer of Partnertech Vellinge AB. Focus on pro-users Success in the US market Scanfil acquires Swedish police Launch of T7 headset Launch of X7 AI headset Since 2008, focus has been on A breakthrough came in 201
Slide 34: INVISIO and Racal Acoustics systems
INVISIO Personal System Racal Acoustics Personal System Modular and Scalable Leading High Noise Solution INVISIO solutions are versatile, scalable and cost- Racal Acoustics offers industry-leading hearing protection effective. Equipment and systems are not restricted for high noise environments than
Slide 35: Why an outsourced production model?
Why an outsourced production model? • Flexibility for variable demand • Economies of scale • Component sourcing • Less capital intensive • Robust in case of emergency • Focus on what we are best at Partnerships in operations
Slide 36: How do we select partners?
How do we select partners? • Partnership attributes • Compliant and code of conduct • Attention to quality • Stable, transparent finances and operating model • Innovation, technology and productivity • Environmental, social and governance (ESG) maturity • Competitive price • Shared values • Right si
Slide 37: What, who, where – some partners
What, who, where – some partners What Who & where In-The-Ear headsets Company Over-The-Ear headsets Company Company Control units / ICS Company Cable assemblies Company Company Company Raw cables Company Company Plastic parts Company Company Company Partnerships in operations
Slide 38: Inventory and logistics
Inventory and logistics Distribution centers Scanfil Sweden (Malmö) Scanfil USA (Atlanta) Service and small scale manufacturing Racal UK INVISIO Denmark INVISIO France
Slide 39: Does it work? YES!
Does it work? YES! • +60% year-over-year growth delivered • Inventory of finished goods • Safety stock of long lead-time components • Forecasting process • Very close collaboration with partners
Slide 40: Looking ahead
Looking ahead • Less China => more NATO and friendly countries • Regional production • Rapid deployment requests – fast and reliable supply chain as a key competitive advantage • Secured supply chain • Environmental, social and governance (ESG) and CSRD tracking and reporting
Slide 41: Q&A SVP Operations Joakim Birgersson
Q&A SVP Operations Joakim Birgersson
Slide 42: Thank you!
Thank you! For more information visit invisio.com
Slide 43: Scanfil Malmö
Scanfil Malmö WELCOME TO SCANFIL’S MALMÖ FACTORY
Slide 44: Integral part of Swedish manufacturing history
Integral part of Swedish manufacturing history Pelé and FACIT CEO Gunnar Eriksson 1918 1966 1970’s 1980’s 2001 2015 Addo was founded in Malmö Addo was acquired by its Sold to Electrolux in 1973 PartnerTech (previous FACIT) PartnerTech is acquired by by Mr Hugo Agrell. At the largest competitor FACIT
Slide 45: Scanfil Malmö
Scanfil Malmö Fast prototyping, PCBA and Box Build • Fast prototyping • PCBA assembly and testing • Box build • Warehouse and distribution • Dedicated organization and equipment for fast prototyping ~190 6,000 m2 Personnel Floor area Malmö Headcount + third party Sweden CONFIDENTIAL 20-Sep-24 45
Slide 46: Key milestones of development for past three years
Key milestones of development for past three years Scanfil Malmö Competitor 2 Competitor 1 2021 2022 2023 Turnover Factory People • In three years turnover up by 110% • +33% more space • +40% more employees • #1 regional EMS player in the region • Total transformation (flow oriented) • Cooperation w
Slide 47: Customer and employee satisfaction improved
Customer and employee satisfaction improved 5 76 85 84 74 73 84 4 3,91 83 82 72 71 3,44 82 3 3,1 70 81 2 80 68 79 78 66 65 78 1 64 77 0 76 2021 (Q4) 2022 (Q4) 2023 (Q4) 62 75 60 74 Customer satisfaction target 2021 2022 2023 2021 2022 2023 Customer satisfaction Employee satisfaction Employee loyalty
Slide 48: Industrial customers are the backbone of Malmö
Industrial customers are the backbone of Malmö 4% 18% 19% Industrial TOP 1-3 Energy & Cleantech TOP 4-10 50% Others Metech & Life Science 31% 78% CONFIDENTIAL 20-Sep-24 48
Slide 49: Sustainability is at the heart of Malmö
Sustainability is at the heart of Malmö • Green factory, 100% electricity and heating from wind, water and sun (zero CO2 emission) • CSRD reporting in PositionGreen (Full report 2024) • Dedicated sustainability manager Women in the management team 30% 28% 25% 20% 15% 12,50% 10% 5% 0% 2021 2022 2023
Slide 50: Our offer throughout your products life cycle
Malmö capability Our offer throughout your products life cycle Scanfil Group Product Product Design Industrialization Manufacturing End of life Maintenance Services services services services services Supply chain System Management Integration Supply Chain Design Repairs & Refurbish Product Developm
Slide 51: State of art equipment
FACTORY NETWORK State of art equipment • Two fully automated ASM SMT lines and 1 Mydata line dedicated for prototyping • Ersa Selective soldering machine, double nozzles (2019) • Seica flying probe (as of 2022) • Three in-circuit test units (latest 2021) • >30 different functional testers for differ
Slide 52: Scanfil Dream Factory vision
Scanfil Dream Factory vision • Best-in-class • Move faster than our competitors Big Data • Improve competitiveness VR • Enhance our operational performance • Exceed expectation of our stakeholders Ai Smart warehouse ? Automation Robotics IT AIV RPA Material management Process APS SPC MES Data Logist
Slide 53: Malmö Dream Factory Road Map
Malmö Dream Factory Road Map 2023 2024 2025 2026 Digitalization (MES) Traceability (MODI system, laser marker) Scanfil SMART Design for Manufacturing (Siemens tools, Valor, BOM connector) Automation (dispensing, coating, depanelization, AI inspection, cobots) Lean Manufacturing: SMT planning, VKS, v
Slide 54: Malmö is ideal for a customer who has a need for…
Malmö is ideal for a customer who has a need for… Fast prototyping Sharp increase in demand PCBA and box-build production • Strong track record in fast prototyping • Experienced team to ramp up production • State of the art equipment, including high- • Dedicated resources • Swift reaction to changes
Slide 55: Scanfil
SCANFIL
Slide 56: Factory Flow
Factory Flow We are here Serial prod. Proto/low vol. 20-Sep-24 56