Comet Holding Ag · SIX:COTN
Comet — Investor Day (November 2018)
44 slides from Comet's investor day presentation, Nov 13, 2018
Slide 1: Comet Group Investor Day 2018
Comet Group | Investor Day 2018 | November 13, 2018 1
Slide 2: Play on strengths. Improve. Perform.
RENE LENGGENHAGER CEO, COMET GROUP Play on strengths. Improve. Perform. Comet Group | Investor Day 2018 | November 13, 2018 2
Slide 3: Status Update: Strategy 2020 and priorities
Status Update Strategy 2020 and priorities Technology with Passion Comet Group | Investor Day 2018 | November 13, 2018 3
Slide 4: Positive perspective, solid base
Status Update Positive perspective IXM: new iVario/tube bundle, launches for security market Strong IXS: innovations for Industry 4.0 pipeline + 20 % investments in R&D vs. 2017 PCT: new RF generator Production building expansion FLA completed as enabler of further lean initiatives EBT: Egg Case Pro
Slide 5: Comet has grown into an important partner to key customers
Status Update Thanks to its core competencies, the Comet Group has grown into an important partner to key customers in various industries Strategy 2020 Sales evolution since the company was founded Sales 400 CHFm 300 CHFm IXS acquisitions FineFocus, Yxlon 200 CHFm Vacuum Capacitors X-ray 100 CHFm Co
Slide 6: Common core competencies across all three technologies
Status Update Common core competencies are instrumental for the leading solutions in all three technologies X-ray RF Power ebeam Technologies Non-destructive testing Treatment of surfaces Computed tomography Plasma control Sterilization Security inspection Inactivation Core competencies High vacuum,
Slide 7: Digitalization of products, processes and services
Status Update Digitalization of products, processes and services will offer even more synergies tomorrow Comet products can create Similar approach for data Our customers’ additional value as sensors science across Comet Group end user goal / data generators (methods, capabilities, data technologies
Slide 8: Similar data processing methods create more value between businesses
Status Update Similar data processing methods / algorithms will create even more value and learning experience between the businesses Group-wide - - - - - - Data processing know-how (in development) - - - - - - «future-ready» excellence Group-wide value-added - - - - - - - - - - - - - - - - - - - -
Slide 9: Our four divisions
Status Update % Group sales H1 2018 Our four divisions 15% 28% 4% EBT PCT IXM IXS 53% Sterilization Semiconductors Security Electronics Material modification Microchips & Sensors Aerospace Automotive / Foundries Displays Electronics Aerospace Medical Comet Group | Investor Day 2018 | November 13, 20
Slide 10: The Comet Group growth engine
Status Update The Comet Group growth engine: Strong and diversified on-going business Comet Group | Investor Day 2018 | November 13, 2018 10
Slide 11: EBT strategy update
Strategy update EBT: (vollseitiges Bild zu EBT please use picture of all ebeam employees – idea is to show that the business is not reduced to a handful of people but that a sizeable organization is behind ) EBT Comet Group | Investor Day 2018 | November 13, 2018 11
Slide 12: EBT: Re-focusing of business almost completed
Status Update EBT: Re-focusing of business almost completed – Transfer of system business part to new owner PCT EBEAM AND INTEGRATION, LLC, Comet remains free to an affiliate of Tri-City Electric Co. operate its module activities without any restrictions Top 40 electrical contracting and engineeri
Slide 13: ebeam clear advantages
Status Update ebeam clear advantages EBT High performance, ebeam engines produced in Flamatt unchanged over time Switz. No chemicals, food safe Energy-efficient, no heat No odour Comet Group | Investor Day 2018 | November 13, 2018 13
Slide 14: EBT: New model with focus on promising ebeam engines
Status Update EBT: New model with focus on promising ebeam engines FROM TO Addressing OEMs and end customers Addressing OEMs only Reducing losses Development of completely new markets Scaling of existing market access, know-how and products into adjacent applications Sizeable advance investments Ris
Slide 15: EBT current business and new risk-adjusted model
Status Update EBT current business and new risk-adjusted model Low double digit sales volume based on contracts with partners, EBLabs and Decrease Increase through R&D expected over the next underutilization operational excellence 5 years, starting from about and development and low cost base throug
Slide 16: Realigned EBT business: start-up business with strong strategic customers
Status Update Realigned EBT business: Start-up business based on strong strategic customers and attractive further long-term potential % Group sales H1 2018 Applications Position Future-oriented technology based on Core Existing Next potential solid know-how Only supplier of compact sealed lamp to
Slide 17: EBT priorities to 2020
Status Update EBT priorities to 2020 4 Scale know-how, market access and products Start of risk-adjusted model 3 Develop partnerships with OEMs 2020 2 Continue Egg case 1 Tetra Pak, Bühler and other partners: position EBT as solid and reliable development partner Operational excellence and reliabili
Slide 18: IXS
ran YXLON ==: Sy
Slide 19: IXS profit improvement program on track
Status Update IXS profit improvement program on track, increasing agility and strengthening organization for growth from 2020 onwards Status of implementation to achieve 1. Reprioritization EBITDA margin of 6% in 2019 Reprioritization and acceleration of projects to renew product portfolio 2. Workfo
Slide 20: Increase efficiency: two examples of groundwork done
Status Update Increase efficiency: Two examples of important groundwork done to strengthen operations and speed up time to market 1 End-of-line checks about -15% Warranty cost starting end of 2018 about -30%* Throughput time starting end of H1 2019 2 Lean pilot introducing tact End-of-Line Visible e
Slide 21: Portfolio renewal on track, focused pipeline
Status Update Portfolio renewal on track, first positive effects, focused pipeline +80% OI +2 compared to 2017 Global Technology Awards FF 20/35 CT +10% OI vs. old systems First 4 orders new releases for Industry 4.0 Substantial Cheetah / Cougar scheduled for additional new EVO orders from 2020 2019
Slide 22: IXS: Exciting business with attractive potential
Status Update On-going business IXS: Exciting business with attractive potential % Group sales H1 2018 Addressable market Position One of the leading Current market share suppliers of industrial x-ray systems globally Medical Electronics In-depth expertise in complex 28% Automotive Strengths indus
Slide 23: IXS priorities 2020
Status Update IXS priorities 2020 4 Enhance data analysis skills to support process improvement for customers 3 Further develop and upgrade metrology as a feature 2020 2 Consistent and timely introduction of planned product releases and upgrades 1 Sustainable development of organization under new le
Slide 24: IXM
IXM
Slide 25: IXM: Well-positioned for continued growth
Status Update On-going business IXM: Well-positioned for continued growth, advancing business under new management since January 2018 % Group sales H1 2018 Addressable market (modules) Position Clear market leader in non- Current market share destructive testing and security with tubes Superior in
Slide 26: IXM priorities to 2020
Status Update IXM priorities to 2020 3 Expand product range to explore new and adjacent markets 2020 2 Launch of cost-optimized security products 1 Exploit existing portfolio to grow with the bundle (tube & generator) Operational excellence; expand lean activities, lead buyer concept, global logisti
Slide 27: PCT
PCT
Slide 28: PCT: Current slowdown but continued high demand
Status Update On-going business PCT: Current slowdown – But continued high demand for joint development projects; strong drivers based on growing data storage and processing demand % Group sales H1 2018 Addressable market Position One of the leading Current market share suppliers of RF power technol
Slide 29: PCT priorities to 2020
Status Update PCT priorities to 2020 4 Market intro of new RF generator (for RF power system) 3 Prepare new production facility for next-generation generators 2020 2 Optimize R&D processes for accelerated time to market (Smart lab) 1 Remain preferred innovation partner for key customers Introduce fu
Slide 30: Operational Excellence: important milestones reached
Status Update Operational Excellence: Important milestones reached; completed expansion in Flamatt as basis for further lean initiatives and future growth Building expansion on cost and on time Leaner processes and production cells Automation concept First significant savings from lead buyer initiat
Slide 31: Business Development with good progress in all major projects
Status Update Business Development with good progress in all major projects IXS - Electronics 4.0 IXS - CT Intelligence EBT - ebeam+ EBT - Egg treatment EBT - Printing Comet Group | Investor Day 2018 | November 13, 2018 31
Slide 32: Growth Initiatives: important steps achieved
Status Update Growth Initiatives – important steps achieved with each initiative PCT - Expanding RF power portfolio EBT - Inactivation of dry food with Bühler IXS - Metrology: Strengthening of portfolio IXM - Security: New offering Comet Group | Investor Day 2018 | November 13, 2018 32
Slide 33: Our four levers for growth beyond 2020
Strategy Update Our four levers for growth beyond 2020 Digitalization Diversification Smart factory Regions Smart products & services Applications Smart processes Products & Services Go-to-Market Speed & Agility Leadership Customer centricity Culture Market access Processes Cross-selling (Lab One) C
Slide 34: Main initiatives implemented to support each growth lever
Strategy Update Main initiatives implemented to support each growth lever Status Status Expansion of Smart connectivity product portfolio Automated shuttle BI Controlling (BEX) logistics Rollout of Jira, Automated testing of Confluence SW integration IXM Sales CRM Service CRM (Group) Expansion of La
Slide 35: Summary & Outlook
Summary & Outlook Technology with Passion Comet Group | Investor Day 2018 | November 13, 2018 35
Slide 36: Strong base; right priorities to 2020
Summary Strong base; right priorities to 2020 Strong base of shared core competencies Strategy 2020 on track; actions taken to address challenges at IXS and EBT Clear priorities to deliver to deliver on 2020 strategy for each division Comet Group | Investor Day 2018 | November 13, 2018 36
Slide 37: Well positioned to address attractive market potential
Summary Comet group well positioned to address attractive market potential EBT PCT / IXM / IXS Core/ existing applications Future potential Addressable market Current market share Comet Group | Investor Day 2018 | November 13, 2018 37
Slide 38: Outlook
Summary Outlook 2018 Net sales between 430 to 440 and an EBITDA margin between 7 and 9% 2019 and 2020 For 2019 and 2020 the Comet Group is not publishing revenue and EBITDA targets, in view of - the geopolitical uncertainty - the lack of visibility especially in the semiconductor market - the struct
Slide 39: How we are going forward
Strategy Process How we are going forward René Lenggenhager, CEO, Comet Group Technology with Passion Comet Group | Investor Day 2018 | November 13, 2018 40
Slide 40: Working on longer-term strategy at Group and division level
Strategy process We are working on the longer-term strategy both at the Group level and at the divisions level, both linking closely COMET GROUP PCT IXS Finalize, align, IXM clear with BoD EBT Functional strategies Comet Group | Investor Day 2018 | November 13, 2018 41
Slide 41: Create value-added to 2020 and beyond
Strategy process Create value-added to 2020 and beyond Sales evolution Leveraging Digitalization Diversification Go-to-Market Speed & Agility Attractive potentials based on product portfolio expansion Strong growth drivers Strong core competencies 1948 2018 Comet Group | Investor Day 2018 | November
Slide 42: Financial calendar for the Comet Group
Financial calendar for the Comet Group March 14, 2019 Publication of 2018 annual report April 25, 2019 Annual shareholder meeting in Berne More details on our business performance and financial results: Markus Portmann Ines Najorka http://www.comet-group.com Chief Financial Officer VP Corp. Communic
Slide 43: Disclaimer
Disclaimer This document contains forward-looking statements about the Comet Group that may be subject to uncertainty and risk. Readers should therefore be aware that such statements may deviate from actual future outcomes or events. Forward-looking statements in this document are projections of pos
Slide 44: Thank you for your interest
Thank you for your interest Technology with Passion Comet Group | Investor Day 2018 | November 13, 2018 46