Huber + Suhner Ag · SIX:HUBN
Huber + Suhner — H1 2020 Earnings Presentation
32 slides from Huber + Suhner's earnings presentation, Aug 18, 2020
Slide 1: HUBER+SUHNER
HUBER+SUHNER
Slide 2: Half-year conference 2020
Half-year conference 2020 18 August 2020 | Media and analysts conference 2
Slide 3: Agenda
Agenda Overview 1st half-year 2020 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2020 Urs Ryffel (CEO) Questions and discussion 18 August 2020 | Media and analysts conference 3
Slide 4: Solid half-year results in a difficult environment
Solid half-year results in a difficult environment Order intake and net sales down compared to strong prior-year period • Measures taken by governments in the sales regions to contain the coronavirus impacted economic activity in the reporting period • Prior-year period again included substantial sh
Slide 5: Figures at a glance
Figures at a glance MCHF H1/2020 H1/2019 Δ% Order intake 396.7 448.7 −11.6 Net sales 376.7 447.3 −15.8 Operating profit (EBIT) 25.1 47.8 −47.5 as % of net sales 6.7 10.7 Net income 19.9 37.4 −46.8 as % of net sales 5.3 8.4 18 August 2020 | Media and analysts conference 5
Slide 6: The three dimensions of our business
The three dimensions of our business View on sales by technology segment, market, region 18 August 2020 | Media and analysts conference 6
Slide 7: Radio Frequency technology segment
Radio Frequency technology segment Continued double-digit EBIT margin MCHF Key aspects H1/2020 H1/2019 Δ% • Radio Frequency with continued double-digit EBIT margin Order intake 130.9 152.6 −14.2 • The industrial submarkets of aerospace and defense as well as Net sales 121.3 147.8 −17.9 test and meas
Slide 8: Fiber Optics technology segments
Fiber Optics technology segments Temporarily halted upward trend MCHF Key aspects H1/2020 H1/2019 Δ% • Prior-year net sales still with significant share from large-scale 4G Order intake 151.1 150.3 0.5 project in India • BKtel acquisition consolidated in Net sales 138.8 157.5 −11.9 Fiber Optics figu
Slide 9: Low Frequency technology segment
Low Frequency technology segment Solid EBIT despite decrease of sales MCHF Key aspects H1/2020 H1/2019 Δ% • Delay in awarding of contracts due to uncertainties Order intake 114.7 145.8 −21.3 • Doubling of sales of high-voltage distribution solutions for electric Net sales 116.6 142.0 −17.9 vehicles
Slide 10: Net sales by market
Net sales by market All markets with lower sales, shares almost unchanged MCHF 250 200 30% −18.6 % 150 40% −12.7 % H1/2020 −14.9 % 100 50 30% 0 Communication Transportation Industrial Communication H1/2019 Transportation H1/2020 Industrial 18 August 2020 | Media and analysts conference 10
Slide 11: Net sales by region
Net sales by region Europe least affected MCHF 250 −4.4 % 200 27% 150 H1/2020 55% −26.1 % 100 −27.2 % 18% 50 0 EMEA (incl. CH) Americas Asia-Pacific EMEA (incl. CH) H1/2019 Americas H1/2020 Asia-Pacific 18 August 2020 | Media and analysts conference 11
Slide 12: Agenda
Agenda Overview 1st half-year 2020 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2020 Urs Ryffel (CEO) Questions and discussion 18 August 2020 | Media and analysts conference 12
Slide 13: Factors impacting order intake
Factors impacting order intake MCHF −47.0 MCHF −24.4 MCHF + 19.4 MCHF −52.0 MCHF −10.5 % −5.4 % + 4.3 % −11.6 % 500 400 300 449 200 397 100 0 Order intake H1/2019 Organic Currency & copper Portfolio Order intake H1/2020 18 August 2020 | Media and analysts conference 13
Slide 14: Factors impacting net sales
Factors impacting net sales MCHF −67.2 MCHF −23.0 MCHF + 19.6 MCHF −70.6 MCHF −15.0 % −5.2 % + 4.4 % −15.8 % 500 400 300 447 200 377 100 0 Net sales H1/2019 Organic Currency & copper Portfolio Net sales H1/2020 18 August 2020 | Media and analysts conference 14
Slide 15: Net sales development by technology segment
Net sales development by technology segment All three segments with double-digit organic decline MCHF 200 −17.9 % −11.9 % −17.9 % reported −14.8 % −17.2 % −11.9 % organic 158 148 150 139 142 121 117 100 50 0 Radio Frequency Fiber Optics Low Frequency H1/2019 H1/2020 18 August 2020 | Media and analys
Slide 16: Gross margin
Gross margin Stabilised at the level of the second half of 2019 MCHF 180 40% 160 140 38% 37.2% 120 34.9% 36% 100 34.8% 80 34% 60 40 32% 20 167 133 131 0 30% H1/2019 H2/2019 H1/2020 Gross profit Gross margin 18 August 2020 | Media and analysts conference 16
Slide 17: Operating expenses
Operating expenses Cost reduction measures unfold their effect MCHF 150 28.5% 30% 27.0% 26.7% 121 107 102 34 100 20% 20 26 21 21 24 50 10% 66 62 57 0 0% H1/2019 H2/2019 H1/2020 S+M R+D Admin in % of net sales 18 August 2020 | Media and analysts conference 17
Slide 18: EBIT by technology segment
EBIT by technology segment Decline accentuated differently MCHF H1/2020 in % H1/2019 in % Radio Frequency 15.0 12.4 27.0 18.3 Fiber Optics 4.4 3.1 12.3 7.8 Low Frequency 7.9 6.8 12.6 8.8 Corporate (2.2) (4.1) Total EBIT 25.1 6.7 47.8 10.7 18 August 2020 | Media and analysts conference 18
Slide 19: Currency situation in 2020
Currency situation in 2020 Strong devaluation against CHF FX / CHF 30.06.2020 vs. 31.12.2019 Ø H1/2019 vs. Ø H1/2020 0% Simulation: -2.4% -2.9% FX impacts H1/2020 result -5% -3.1% -3.9% -4.3% -5.7% Pro forma -6.3% reported with FX -7.0% -10% -8.2% -8.3% MCHF H1/2019 -8.6% -10.0% Net sales 377 397 -1
Slide 20: Financial result
Financial result Improvement due to higher interest income MCHF 1 Net currency effects Other financial result (0.6) 0.1 0.5 0 (0.4) (0.4) (0.2) -1 H1/2019 H1/2020 18 August 2020 | Media and analysts conference 20
Slide 21: Group tax rate
Group tax rate Constant level 30% Expected tax rate Effective tax rate 25% 21.9% 21.5% 20.8% 21.0% 20% 15% 10% 5% 0% H1/2019 H1/2020 18 August 2020 | Media and analysts conference 21
Slide 22: Investments
Investments Level in announced range MCHF 45 Investments in % of net sales 6% 4.9% 4.5% 4.7% 5% 4.4% 30 4% 3.1% 3% 15 2% 1% 32 38 27 38 18 0 0% 2016 2017 2018 2019 H1/2020 18 August 2020 | Media and analysts conference 22
Slide 23: Overview Balance sheet
Overview Balance sheet Unchanged strong MCHF 30.06.2020 31.12.2019 30.06.2019 Cash and cash equivalent 143 192 −26 % 167 Other current assets 345 314 10 % 373 Non-current assets 245 244 0% 237 Financial liabilities 1 1 - Other liabilities 172 161 7% 172 Equity* 559 588 −5 % 605 in % 76 % 78 % 78 % B
Slide 24: Overview cash flow
Overview cash flow Covid-19 causes low cash flow from operating activities MCHF H1/2020 H1/2019 Cash flow from operating activities 5.0 33.9 Cash flow from investing activities (17.0) (15.8) Free operating cash flow (12.0) 18.1 Dividend payment (31.2) (48.7) Dividend payment to minorities (0.5) 0.0
Slide 25: Financial assessment H1/2020
Financial assessment H1/2020 Double-digit decline in order intake (−12 %) and net sales (−16 %) Proactive cost management enables solid operating profit (6.7 %) despite Covid-19 Low cash flow from operating activities (MCHF 5) Stable financial and liquidity situation enables strategic flexibility 18
Slide 26: Agenda
Agenda Overview 1st half-year 2020 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2020 Urs Ryffel (CEO) Questions and discussion 18 August 2020 | Media and analysts conference 26
Slide 27: Milestones H1/2020
Milestones H1/2020 Communication Industrial Optical switches High-power charging system POLATIS high-radix switches help World first for new RADOX® cloud service providers build energy- HPC500, which allows continuous efficient next generation optical charging with currents of 500 A networks Transpo
Slide 28: Trends in main markets
Trends in main markets With the right solutions in the right markets Communication • Functioning of connectivity essential as part of system critical infrastructure • Mobile network densification towards higher capacity, better coverage, shorter latency remain focal points • Expansion of the 5G mobi
Slide 29: Outlook 2020
Outlook 2020 Net sales outlook for 2020 • Uncertainties due to the coronavirus pandemic remain considerable. • Global value chains have largely stabilised but have not yet normalised as before. • The development of the most relevant currency exchange rates vs. the Swiss franc is likely to remain unf
Slide 30: Agenda
Agenda Overview 1st half-year 2020 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Milestones and outlook 2020 Urs Ryffel (CEO) Questions and discussion 18 August 2020 | Media and analysts conference 30
Slide 31: Connecting – today and beyond
Connecting – today and beyond
Slide 32: 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