Cicor Technologies · SIX:CICN
Cicor Technologies — Investor Day (September 2024)
37 slides from Cicor Technologies's investor day presentation, Sep 18, 2024
Slide 1: Cicor Technologies Ltd. Investora 2024
Cicor Technologies Ltd. Investora 2024 September 18, 2024 Alexander Hagemann, CEO Peter Neumann, CFO
Slide 2: Disclaimer
September 18, 2024 Disclaimer The information in this presentation does not constitute an offer or invitation and may not be construed as a recommendation by us to purchase, hold or sell shares of Cicor Technologies Ltd. This information or any copy thereof may not be sent or taken to or distributed
Slide 3: The Cicor Group
Alexander Hagemann, CEO The Cicor Group 3
Slide 4: Fastest growing manufacturer of advanced electronics in Europe
The Cicor Group Fastest growing manufacturer of advanced electronics in Europe 2024 Sales guidance 2024 EBITDA guidance CHF 470-510 million CHF 50-60 million Organic growth ahead of Electronic Mid-Term 10-13% margin. Top Manufacturing market profitability vs peer group HY 2024 Earnings per share HY
Slide 5: Turning ideas into advanced electronic solutions
Electronification of everything Turning ideas into advanced electronic solutions Medical Industrial Aerospace & Defence (A&D) 24% of sales in HY 2024 33% of sales in HY 2024 24% of sales in HY 2024 Cicor helps improve Cicor is at the forefront Cicor ensures safety, global healthcare by the of techno
Slide 6: Strategic and long-lasting partnerships across whole life cycle
Sticky customer relationships Strategic and long-lasting partnerships across whole life cycle 6
Slide 7: Advancing healthcare through technology
United Kingdom Hartlepool, Newport Building ofin 2023 29% of sales leading platforms in attractive markets Germany Dresden, Radeberg, Ulm, Wutha-Farnroda / Buttlar Advancing healthcare Romania through technology Arad, Bucharest China Switzerland Dongguan, Suzhou Boudry, Bronschhofen, Wangs • Develop
Slide 8: Driving automation and miniaturisation in industry
United Kingdom Hartlepool, Newport Building ofin 2023 29% of sales leading platforms in attractive markets Germany Dresden, Radeberg, Ulm, Wutha-Farnroda / Buttlar Driving automation and Romania miniaturisation in industry Arad China Switzerland Dongguan, Suzhou Boudry, Bronschhofen, Wangs • Develop
Slide 9: European market leader for A&D EMS
Building ofin 2023 29% of sales leading platforms in attractive markets Bedford, UK European market leader Radeberg, Germany Newport, UK Gosport, UK Ulm, Germany for A&D EMS Boudry, Switzerland Bronschhofen, Switzerland Wangs, Switzerland • Long-standing supplier of design and manufacturing services
Slide 10: Strategy Update
Alexander Hagemann, CEO Strategy Update 10
Slide 11: A strong platform for organic growth and industry consolidation
Cicor strategy A strong platform for organic growth and industry consolidation Active consolidation Focus on our three core Strategic customer through M&A markets with highly relationships through profitable high-mix/low- excellent solution finding, volume businesses differentiated technology portfo
Slide 12: Cicor is well positioned to benefit from megatrends
EMS market trends and Cicor positioning Cicor is well positioned to benefit from megatrends Capacity to ‚own the trend‘ Megatrends accelerate EMS Cicor manufacturing infrastructure supports organic market growth to CAGR of 6.8% growth to CHF 700 million On the safe side of the economic cycle Industr
Slide 13: Rationale for M&A – the external market view
Rationale for M&A – the external market view The EMS market is a highly fragmented and growing market, pre-destined for consolidation Fragmented market Growing market Customer loyalty Economies of scale 1,700 EMS € 25 billion In Europe, consolidation Adressed market (2023), has just begun: 44% of to
Slide 14: Cicor follows a value-accretive buy-and-build strategy since 2021
Timeline of executed transactions Cicor follows a value-accretive buy-and-build strategy since 2021 Carve-out from Jan-2023 Further strengthening of Dec-2021 presence in Germany Jan-2024 Mar-2024 Strengthening presence through acquisition of Expansion of presence Acquisition (carve-out) of three in
Slide 15: Proven path to value creation
Experience from past acquisitions Proven path to value creation Highly selective which opportunities are pursued Cicor often the acquirer of choice Ability to acquire at moderate multiples Efficient and trusted M&A process with internal M&A team Market share gains post-closing Fast realization of ca
Slide 16: M&A supports strategy, making Cicor a stronger company
Acquisitions completed in H1 2024 M&A supports strategy, making Cicor a stronger company Expand Cicor’s platform for the UK market combined with the other announced UK-based acquisitions (i.e., Axis Electronics and two of the three Tech & engineering provider of acquired TT Electronics businesses) s
Slide 17: Financial Results HY1 2024
Peter Neumann, CFO Financial Results HY1 2024 17
Slide 18: Change in Accounting Principles – Offset Goodwill in Equity
Financial Results HY1 2024 Change in Accounting Principles – Offset Goodwill in Equity in CHF million June 2023 (6 months) December 2023 (12 months) • Cicor changed its accounting policy that goodwill reported change restated reported change restated from acquisitions will be offset directly against
Slide 19: Long-term view – Impact of Cicor growth strategy
Financial Results HY1 2024 Long-term view – Impact of Cicor growth strategy CHF million % 400 20 • Cicor achieves best half-year results ever in terms 350 of Sales and EBITDA, demonstrating the success 300 191 15 of its growth strategy 250 155 • Strong sales contribution from newly acquired 200 10 1
Slide 20: Financial achievements Half-Year 2024
Financial Results HY1 2024 Financial achievements Half-Year 2024 CHF million Orders received Net sales EBITDA EBIT Net profit FCF excl. Acquisition +15.9% +303.2% +16.1% -9.2% 24.7 21.1 221.4 231.3 201.1 21.3 199.2 13.1% +53.9% 15.1 13.4 11.9 7.7 5.2 ROS ROS ROS ROS ROS ROS 10.7% 10.7% 6.7% 6.5% 3.9
Slide 21: Consolidated Income Statement
Financial Results HY1 2024 Consolidated Income Statement CHF million HY 2024 in % HY 2023 in % %YoY • Record high in Net sales and EBITDA restated • EBITDA margin stable at 10.7% despite Net sales 231’297 100.0 199’152 100.0 16.1 negative one-time impacts of Material expenses -119’406 -51.6 -109’443
Slide 22: Consolidated Balance Sheet
Financial Results HY1 2024 Consolidated Balance Sheet CHF million Jun 24 in % Dec 2023 in % • Net debt increased by CHF 36.2 million of which CHF 51.0 million was used for the restated acquisition of businesses Current assets 302’705 72.4 251’896 73.1 Non-current assets 115’288 27.6 92’626 26.9 • Fi
Slide 23: Consolidated Cash Flow Statement
Financial Results HY1 2024 Consolidated Cash Flow Statement CHF million HY 2024 HY 2023 • Strong cash flow from operating activities driven by strong net income performance restated and proven working capital management Net profit 11’886 7’722 Depreciation, amortization and impairment 9’613 7’969 •
Slide 24: Return on Invested Capital
Financial Results HY1 2024 Return on Invested Capital CHF million % • ROIC above Cicor’s cost of capital 40 15 • New ROIC definition in line with the change 35 12.0% 11.4% in accounting for goodwill as disclosed in 30 footnote 9.5% 9.1% 10 25 8.6% 8.6% 8.0% • Steady increase in ROIC demonstrates 7.5
Slide 25: Operating Net Working Capital
Financial Results HY1 2024 Operating Net Working Capital CHF million % • Absolute increase in ONWC due to 200 50 acquisitions 45 • Favorable development in ONWC in % of 40 150 34% 35% net sales as a result of improved inventory 35 management (customer funded inventory) 29% 29% 26% 30 24% 100 25 20 1
Slide 26: Key Figures per Share
Financial Results HY1 2024 Key Figures per Share HY 2024 HY 2023 %YoY • Favorable EPS and market restated 0.0% capitalization trends demonstrate Number of registered shares issued 30.6. 3’478’616 3’411’169 2.0% strong shareholder value creation Number of Treasury shares 30.6. -307’929 -251’267 22.6%
Slide 27: Long-term development of Earnings per Share
Financial Results HY1 2024 Long-term development of Earnings per Share CHF million CHF • Positive development of EPS as a result 20 4.0 of improved Net Profit performance 3.70 3.5 • Dilution on EPS due to the issuance of the Mandatory Convertible Note 15 2.69 3.0 2.44 2.5 10 1.77 1.74 2.0 1.62 1.33
Slide 28: Three M&A transactions completed in HY 2024
Half-Year Report 2024 Three M&A transactions completed in HY 2024 CHF million HY 2024 STS Defence • One operating site in Gosport (UK), specialized in engineering solutions for the UK A&D sector Purchase consideration 54’359 • Closing of the share deal in January 2024 for a consideration of Direct c
Slide 29: Financial summary
Financial Results HY1 2024 Financial summary • Cicor’s growth strategy is delivering a strong financial progression due to successful M&A execution combined with solid organic performance • Strong ROIC progression • Consistent long-term organic revenue growth trend • Profitability improvements drive
Slide 30: Outlook 2024
Alexander Hagemann, CEO Outlook 2024 30
Slide 31: Continued growth expected in 2024
Outlook 2024 Continued growth expected in 2024 • Organic growth in H1 negative but significantly outperforming peers – expect order intake and sales to start recovering in H2 • Very satisfying progress in integrating newly acquired companies • Unchanged guidance to HY 2024 presentation (provided the
Slide 32: Fast pace to achieve mid-term goals
Financial mid-term objectives published 12/2023: 3 - 4 year horizon to 2026-2027 Fast pace to achieve mid-term goals Organic Growth Revenue Profitability Other Core ROIC 1) >600 Core EBIT 7 - 10% 7 – 10% >15% million Net Debt / EBITDA p.A. EBITDA <2.75 CHF 4) 10 – 13% Capex 2) up to 3% • Cicor is we
Slide 33: Cicor – an asset for your portfolio
Outlook 2024 Cicor – an asset for your portfolio • Market with resilient growth driven by megatrends of electronification‚ outsourcing and nearshoring • Strategy targeting the most profitable segments of the market: Industrial, Medical, Aerospace & Defense • Value accretive buy and build strategy wi
Slide 34: Agenda 2024
Events Agenda 2024 October 15 Business Update Q3/2024 September 18 Investora 2024 September 23 Baader Investment Conference 2024 in Munich November 25 - 27 Deutsches Eigenkapitalforum 2024 in Frankfurt December 5 Cicor Capital Markets Event 2024 in Zurich 34
Slide 35: Analysts
Financial Research Analysts Kepler Cheuvreux Research Partners Zürcher Kantonalbank Patrick Steiner Reto Huber Bernd Laux psteiner@keplercheuvreux.com reto.huber@researchpartners.ch bernd.laux@zkb.ch +43 (1) 20 577 383 +41 44 533 40 30 +41 44 292 37 23 Baader Helvea mwb Research Zana Mamelli Alexand
Slide 36: Contacts
Investor Relations Contacts Alexander Hagemann Peter Neumann Michael Götti CEO CFO VP Corporate Marketing & Communications Cicor Management AG, Gebenloostrasse 15, 9552 Bronschhofen, Switzerland investor@cicor.com | +41 71 913 73 00 36
Slide 37: Thank You
Thank You cicor.com Cicor Group @cicor.group