Huber + Suhner Ag · SIX:HUBN
Huber + Suhner — H1 2012 Earnings Presentation
20 slides from Huber + Suhner's earnings presentation, Aug 27, 2012
Slide 1: First half year 2012
Excellence in Connectivity Solutions First half year 2012 27 August 2012 | Media and analysts conference
Slide 2: Agenda; Predictably weak start to 2012
Agenda Overview of first half year 2012 Urs Kaufmann (CEO) Financial results Ivo Wechsler (CFO) Outlook Urs Kaufmann Questions Connected mobility Reto Bolt (COO Radio Frequency) Lunch 27 August 2012 | Media and analysts conference Overview of first half year 2012 Predictably weak start to 2012… …wit
Slide 3: Figures at a glance
Overview of first half year 2012 Figures at a glance CHF millions ∆% H1/11 H2/11 H1/12 (for H1/11) Order intake 426.5 308.0 390.2 -8.5 Net sales 406.0 352.5 314.5 -22.5 Operating profit (EBIT) 37.7 12.5 8.8 -76.7 (excluding gain on disposal of part of premises) • as % of net sales 9.3 3.5 2.8 Operat
Slide 4: Development of order intake, net sales and EBIT
Overview of first half year 2012 Development of order intake and net sales Increasingly positive dynamics CHF millions Order intake Net sales Excellence in Connectivity Solutions 27 August 2012 | Media and analysts conference 7 Overview of first half year 2012 Development of EBIT and EBIT margin: me
Slide 5: Technology and markets; net sales by division
Overview of first half year 2012 The 3 dimensions of our business “Electrical and optical connectivity” APAC Americas EMEA Commu- Transport- Industrial nication ation RF Technology Radio Frequency FO Fiber Optics Low Frequency LF Markets Excellence in Connectivity Solutions 27 August 2012 | Media an
Slide 6: Radio Frequency and Fiber Optics divisions
Overview of first half year 2012 Radio Frequency division – decrease in mobile communication, high-tech niches stable Most important aspects CHF millions • Further decline of net sales due to ∆ % for situation in mobile communication H1/11 H2/11 H1/12 H1/11 OEM business • Positive development of rai
Slide 7: Fiber (and Power) to the Antenna success story
Overview of first half year 2012 Fiber (and Power) to the Antenna (FTTA) a success story for HUBER+SUHNER Largest-scale projects currently under construction with H+S-participation • Sprint, USA • T-Mobile, USA • Bell Mobility, Canada • Vodafone, UK • NBN, Australia • Telia Sonera, Sweden Why is H+S
Slide 8: Net sales by market and region
Overview of first half year 2012 Communication stable with increasing momentum, Transportation and Industrial considerably below the previous year’s high level Net sales in CHF millions 200 150 +0.6% -35.5% 100 -28.3% H1/2012 50 0 Communication Transportation Industrial H1/2011 Communication H1/2012
Slide 9: Conclusion first half year 2012
Conclusion first half year 2012 • Weak start with positive order momentum • Structures become leaner, but are not yet everywhere in line with the changed market conditions • SAP introduction was a huge struggle • Financially still in good shape Excellence in Connectivity Solutions 27 August 2012 | M
Slide 10: Financial assessment; gross margin
Financial results Financial assessment • In the black despite 23% drop in net sales; intact opportunities for growth in H2 • Challenging exchange rate developments stabilise at a low level • Strong balance sheet and high equity ratio even after a weaker half year and high level of investment Excelle
Slide 11: Cost measures begin to have an effect
Financial results Cost measures begin to have an effect CHF millions Comment 120 40% • Reduction in selling and operating 95.6 94.9 costs 89.0 90 30% • Increase in R&D expenses 28.3% 26.9% • Positive one-off effect due to court 23.6% 60 20% settlement solution 30 10% Operating expenditure 0 0% as %
Slide 12: Profitability of the divisions
Financial results Different rates of development in the profitability of the divisions – Low Frequency slipped into the red CHF millions H1 H1 2012 as % 2011 as % Radio Frequency 3.7 3.8 10.9 9.3 Fiber Optics 8.9 10.9 5.7 9.0 Low Frequency (5.3) (3.9) 24.4 10.8 Corporate 1.5 12.6 Total EBIT 8.8 2.8
Slide 13: Normalised tax rate; solid balance sheet
Financial results Normalised tax rate CHF millions H1 H1 2012 2011 Operating profit (EBIT) 8.8 53.6 Financial result (0.5) (6.6) Income before taxes (EBT) 8.3 46.9 Income tax expense (1.9) (7.9) as % of EBT 22.9% 16.9% Net income 6.4 39.0 as % of net sales 2.0% 9.6% Earnings per share 0.33 2.01 Exce
Slide 14: High level of investment; free cash flow
Financial results High level of investment CHF millions • Expansion in China 30 • New ERP • Additional production and assembly capacities 20 33.0 25.4 10 30% 0 H1/11 H1/12 Excellence in Connectivity Solutions 27 August 2012 | Media and analysts conference 27 Financial results Negative free cash flow
Slide 15: Medium-term growth prospects unbroken
Agenda Overview of first half year 2012 Urs Kaufmann (CEO) Financial results Ivo Wechsler (CFO) Outlook Urs Kaufmann Questions Connected mobility Reto Bolt (COO Radio Frquency) Lunch 27 August 2012 | Media and analysts conference Medium-term growth prospects unbroken, but solar industry with new sta
Slide 16: Growth prospects by market
Medium-term growth prospects unbroken, but solar industry with new starting position • Mobile telephony networks • Expansion of public transport Broadband communication have reached their limits – Long-Term Evolution: Fiber • Higher safety requirements Electric mobility Optics and Radio Frequency •
Slide 17: Lower headcount; measures to increase profitability
Outlook Lower headcount – lower costs Permanent staff 4062 3867 3746 3592 Low-cost countries High-cost countries Switzerland Excellence in Connectivity Solutions 27 August 2012 | Media and analysts conference 33 Outlook Implemented and planned measures to increase profitability Implemented measures
Slide 18: 2012 full year outlook
Outlook Factors impacting on the second half year Risks Opportunities • Economic environment / investment in • Level of existing orders and order infrastructure intake growth • Continuing pressure on margins due • Further significant project pipeline in to, inter alia, the currency situation profita
Slide 19: 3x3 strategy; Your questions
3x3 strategy All necessary technologies to “transfer energy and data” Technologies Radio Frequency Fiber Optics Low Frequency Markets Communication Transportation Industrial Excellence in Connectivity Solutions 27 August 2012 | Media and analysts conference 37 Your questions 27 August 2012 | Media a
Slide 20: Agenda recap
Agenda First half year 2012 at a glance Urs Kaufmann (CEO) Financial results Ivo Wechsler (CFO) Outlook Urs Kaufmann Questions Connected mobility Reto Bolt (COO Radio Frequency) Lunch 27 August 2012 | Media and analysts conference Excellence in Connectivity Solutions