Huber + Suhner Ag · SIX:HUBN
Huber + Suhner — Investor Day (September 2024)
44 slides from Huber + Suhner's investor day presentation, Sep 20, 2024
Slide 1: Capital Market Day 2024
Capital Market Day 2024 le ~ | HUBER:+SUHNER
Slide 2: Agenda
Agenda Topic Speaker Strategic overview Urs Ryffel, CEO Break-out sessions Industry Reto Bolt, COO Industry segment Communication Jürgen Walter, COO Communication segment Transportation Drew Nixon, COO Transportation segment Financial insights Ivo Wechsler, CFO 20 September 2024 | Capital Market Day
Slide 3: Strategic overview
Strategic overview Urs Ryffel, CEO 20 September 2024 | Capital Market Day 2024 3
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Slide 5: HUBER+SUHNER at a glance
HUBER+SUHNER at a glance Business activity • Our world is based on connections between humans, Net sales Net income places, and systems. They are essential for the (MCHF) (MCHF) 851.1 64.8 functioning of society. Solutions offering • Connectors, cables, antennas and systems • Based on three technolo
Slide 6: Global network: Engineering, production and sales
Global network Engineering, production and sales The global organisation places HUBER+SUHNER close to its customers. Over 400 sales employees serve customers face to face across all markets, continents and technologies. Network of distributors adds additional points of sales. Standard products are i
Slide 7: Five reasons to invest in HUBER+SUHNER
Five reasons to invest in HUBER+SUHNER (1) (2) (3) Unique value End-to-end value chain Growth strategy targets proposition ensures guarantees focus on attractive markets strong customer loyalty profitability (4) (5) Strong position in HUBER+SUHNER is essential markets and shareholder-oriented applic
Slide 8: 1. Unique value proposition ensures strong customer loyalty
1. Unique value proposition ensures strong customer loyalty Broad customer base and balanced portfolio across markets and regions 26% 34% 33% Net sales 2023 Net sales 2023 by market by region 55% segment 19% 33% Industry EMEA Communication Americas Transportation Asia-Pacific • Broad base of several
Slide 9: 2. End-to-end value chain guarantees focus on profitability
2. End-to-end value chain guarantees focus on profitability Business model with strong focus on sales, R&D and manufacturing Direct sales secure strong position Engineering establishes technology Mastering the manufacturing in target markets and innovation leadership ensures operational excellence C
Slide 10: 3. Growth strategy targets attractive markets
3. Growth strategy targets attractive markets Strategic focus aligned with megatrends Megatrends Strategic growth initiatives Aerospace & Defense Security Connectivity Super-safe society Open innovation Big data Mobility Big data Autonomous driving Industry 4.0 Industry 4.0 Third places Data Center
Slide 11: 4. Strong position in essential markets: Industry
4. Strong position in essential markets and applications Industry: High tech applications allow for high differentiation/high margin Core market Growth initiative Other markets Test & Measurement Aerospace & Defense High Power Charging General Industrial Energy Medical Device Process Ind. T&M busine
Slide 12: 4. Strong position in essential markets: Communication
4. Strong position in essential markets and applications Communication: Technologies to cope with increasing data traffic and AI Core markets Growth initiative CEM Components Fixed Access Network Mobile Network Data Center Trend to faster network Data traffic doubling every Evolution of 5G Investmen
Slide 13: 4. Strong position in essential markets: Transportation
4. Strong position in essential markets and applications Transportation: Environmentally friendly mobility offers high growth potential Core market Growth initiatives Advanced Driver Rolling Stock Electric Vehicle Rail Communications Assistance System Ecological mobility in urban Level 3 automated d
Slide 14: Customer market verticals
Customer market verticals H1/2024 Sales by segment Sales by customer market growth Long term growth drivers • Test & Measurement • Medical Device Industry Industrials • Energy • Process 19 % Increasing demand for power and data connectivity (IoT, Industry 4.0,…) • High Power Charging Industries 31 %
Slide 15: Working towards a low-carbon future
Working towards a low-carbon future Our climate transition plan 2030 and beyond 20 September 2024 | Capital Market Day 2024 | Urs Ryffel, CEO 15
Slide 16: Insight into the activities of the three market segments
Insight into the activities of the three market segments 20 September 2024 | Capital Market Day 2024 16
Slide 17: Capital Market Day 2024
Capital Market Day 2024 17
Slide 18: Our solutions for the Industry market
Our solutions for the Industry market Aerospace & Defense General Industrial • Space • Energy • Command, control, communications, • Process industries computers, cyber, intelligence, surveillance & • Medical device reconnaissance • Cryo-quantum computing • Airborne • Radar & electronic warfare • Mil
Slide 19: Trends & drivers: 24/7 reliable solutions for critical infrastructure
Trends & drivers 24/7 reliable and available solutions for critical infrastructure Increasing Smart grids for Solving complex E-obility is the Accelerating Geopolitics drive demand for power genera- problems requires new reality and growth in space defense budgets internet devices, tion and distri-
Slide 20: Technology trends and strong value propositions
Technology trends and strong value propositions for the different applications Higher density Higher data rates Signal integrity Higher electrical Weight saving lower signal loss power HUBER+SUHNER Compact multiport Modulating RF signals Compact, highly DC charging with Robust, lighter cable connect
Slide 21: Serving a wide range of customers with different approaches to market
Serving a wide range of customers with different approaches to market Focus on US and EU Cover Test & Measurement Focused account base in Developing emerging Aerospace & Defense, OEMs and broad end-users High Power Charging opportunities in promising leveraging all three Opportunities identified in
Slide 22: Key take-aways
Key take-aways Early mover in attractive Working with the Managed complexity niche markets market leaders • Presence in high-end verticals • Local engineering, fully • Bundling of all technologies offers • Early in the life-cycle, offering understanding the customer cross-selling advantages growth p
Slide 23: Capital Market Day 2024
Capital Market Day 2024 23
Slide 24: Our solutions for the Communication market
Our solutions for the Communication market CEM Components • Radio frequency components Data Center • Fiber optic components • Structured cabling • Optical coupling modules for transceivers • Bandwidth expansion and transceivers • Optical circuit switching • Timing synchronisation Mobile Network Fixe
Slide 25: Trends & drivers: Data traffic growth and AI
Trends & drivers Data traffic growth and AI drive communication infrastructure Data traffic Fiber is a key pre- 5G evolution will Convergence Artificial Sustainability and growth continues, requisite for data push wireless of IT and Intelligence cost efficiency driven by video connectivity and inves
Slide 26: Key requirements for the physical layer
Key requirements for the physical layer Future ready Low latency High performance Reliability Density Scalability 20 September 2024 | Capital Market Day 2024 | Jürgen Walter, COO Communication segment 26
Slide 27: Strong value propositions for the different applications
Strong value propositions for the different applications Antenna solutions Harsh environment connectivity – Fiber optic Radio frequency Optical coupling components, connectors and cable systems components modules for transceivers Compact and customisable Rugged and integrated Fast, scalable and modu
Slide 28: Serving different customer groups with their different business models
Serving different customer groups with their different business models Communication Telecoms Service Equipment Neutral host Enterprise Provider Manufacturer (CEM) 20 September 2024 | Capital Market Day 2024 | Jürgen Walter, COO Communication segment 28
Slide 29: Key take-aways
Key take-aways Favourable market trends Well positioned Strong execution • Megatrends are driving • Differentiated and broad solution • Global production network the demand for communication offering • Proven supply chain that is equipment and networks globally • Global access to all resilient and a
Slide 30: Transportation
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Slide 31: Our solutions for the Transportation market
Our solutions for the Transportation market Rolling Stock • In-carriage wiring solutions Rail Communications • Inter-carriage wiring solutions • Train-to-ground communication • Ground communication • Communication-based train control (CBTC) Advanced driver assistance system Electric Vehicle (ADAS) •
Slide 32: Trends & drivers: The world of mobility is changing
Trends & drivers The world of mobility is changing! Decarbonisation: Urbanisation Electrification Ubiquitous ADAS pushed by increased fuels build-out of (BEV/FCEV) wireless train-to- regulatory investments into public adopted by all ground framework public transportation types of vehicles communicat
Slide 33: Customers: Rolling Stock & Rail Communications
Customers Global supplier to all leading OEMs, operators and system integrators Rolling Stock & Rail Communications System integrators Operators OEMs 20 September 2024 | Capital Market Day 2024 | Drew Nixon, COO Transportation segment 33
Slide 34: Customers: Automotive Tier 1 and manufacturers
Customers Global supplier to leading Automotive Tier 1 and manufacturers ADAS EV High Voltage Cable High Voltage Cable High Voltage Charging Distance radar antenna Distance radar antenna Distance radar antenna High Voltage Cables System System Systems 20 September 2024 | Capital Market Day 2024 | Dr
Slide 35: Key take-aways
Key take-aways Favourable market trends Well positioned Strong execution • Megatrends are driving • Best in class high-voltage solutions to • Global production network the demand for communication meet highest temperature, service life, • Proven supply chain that is resilient equipment and networks
Slide 36: Financial insights
Financial insights Ivo Wechsler, CFO 20 September 2024 | Capital Market Day 2024 36
Slide 37: Highlights from H1/2024 reporting
Highlights from H1/2024 reporting Turnaround compared to second half of 2023 600 11.3% 12% 10.3% 9.8% 9.6% 500 10% 8.2% 400 8% 300 6% 200 4% 100 2% 498 477 477 477 453 477 368 374 521 431 0 0% H1/22 H2/22 H1/23 H2/23 H1/24 Order intake Net sales EBIT-margin 20 September 2024 | Capital Market Day 202
Slide 38: Highlights from H1/2024 reporting: segment EBIT
Highlights from H1/2024 reporting Good in Industry, improved in Communication, solid in Transportation MCHF H1/2024 in % H1/2023 in % Industry 22.9 17.0 30.2 18.9 Communication 10.4 6.7 6.2 3.7 Transportation 12.4 8.9 15.5 10.5 Corporate (4.3) (4.9) Total EBIT 41.5 9.6 47.0 9.8 20 September 2024 | C
Slide 39: Guidance 2024 and mid-term target
Guidance 2024 and mid-term target 2024 Mid-term target Net sales Organic growth > CHF 1 billion EBIT margin 9 – 10.5 % 9 – 12 % 20 September 2024 | Capital Market Day 2024 | Ivo Wechsler, CFO 39
Slide 40: Lifting the operational profitability over the last decade
Lifting the operational profitability over the last decade in % EBIT margin 15 9 – 12 % 8 – 10 % 10 6–9% Mid-term target range 5 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1/24 20 September 2024 | Capital Market Day 2024 | Ivo Wechsler, CFO 40
Slide 41: Improving the cash conversion over the last decade
Improving the cash conversion over the last decade MCHF Net cash from operating activities 140 120 100 80 60 40 20 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Ø 70 Ø 103 20 September 2024 | Capital Market Day 2024 | Ivo Wechsler, CFO 41
Slide 42: Significant cash returns to shareholders
Significant cash returns to shareholders 3.00 Dividend policy • Profit-oriented: Target pay-out 2.50 CHF 1.00 ratio of 40-50 % of net income CHF 1.00 CHF 2.10 CHF 2.00 Completed share buy back 2.00 programme CHF 1.60 CHF 1.70 • 5 % of shares (CHF 81 million 1.50 CHF 1.50 CHF 1.30 CHF 1.25 during 202
Slide 43: Connecting – today and beyond
Connecting – today and beyond
Slide 44: 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