Cicor Technologies · SIX:CICN
Cicor Technologies — FY2023 Earnings Presentation
41 slides from Cicor Technologies's earnings presentation, Mar 6, 2024
Slide 1: Annual Results 2023
Annual Results 2023 Cicor Technologies Ltd. March 6, 2024 Alexander Hagemann (CEO) Peter Neumann (CFO)
Slide 2: Disclaimer
March 6, 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 in a
Slide 3: The Cicor Group
Alexander Hagemann The Cicor Group 3
Slide 4: "Cicor inside" in three core markets
Electronification of everything “Cicor inside” in three core markets Medical Industrial Aerospace & Defence 29% of sales in 2023 39% of sales in 2023 16% of sales in 2023 Cicor helps improve Cicor is at the forefront Solutions from Cicor in global healthcare by the of technology, driving aircrafts,
Slide 5: High-tech Electronics CDMO
The Cicor Group - Facts and figures High-tech Electronics CDMO* Sales growth FY 2023 EBITDA margin FY 2023 24.5% to CHF 389.9M 11.6% Organic growth of 11.1% Sales to strategic markets Book-to-bill rate FY 2023 84% 1.03 Industrial, Medical, Aerospace & Defence 15 2,551 Production sites, resilient Cic
Slide 6: One stop shop – creating strategic partnerships with customers
Contract design and manufacturing organisation - CDMO One stop shop – creating strategic partnerships with customers 6
Slide 7: Close to customers and competitive
Global footprint Close to customers and competitive 7
Slide 8: Cicor in 2023
Alexander Hagemann Cicor in 2023 8
Slide 9: Highlights 2023
Cicor in 2023 Highlights 2023 New record figures for order intake, sales and earnings Continued positive book-to-bill ratio Focus on medical, industrial, and aerospace & defence markets Acquired businesses delivered above expectations Strategic Partnership with Clayens M&A fueled and organic growth
Slide 10: Further strengthening of target markets: Industrial, Medical, A&D
Cicor in 2023 Further strengthening of target markets: Industrial, Medical, A&D Sales by industry Sales by region 10
Slide 11: EMS Division takes another step forward
Electronic Manufacturing Services (EMS) EMS Division takes another step forward • Winning important new customers • Progress in operational excellence • Increased working capital efficiency • Excellent performance of acquired companies • Acquired UK-based STS Defence Limited - the transaction was co
Slide 12: AS Division with recovery in H2
Advanced Substrates (AS) AS Division with recovery in H2 • Satisfying performance in H2 after a weaker H1 • AS remains strategic to Cicor as a technology powerhouse • AS opportunities support the growth of Cicor in Medical and Aerospace & Defense markets • Printed Circuit Board (PCB) production with
Slide 13: M&A Update
Alexander Hagemann M&A Update 13
Slide 14: A strong platform for organic growth and industry consolidation
M&A Update A strong platform for organic growth and industry consolidation Focus on our three Strategic customer Active consolidation core markets with relationships through through M&A highly profitable excellent solution high-mix/low-volume finding, differentiated businesses technology portfolio a
Slide 15: The EMS market is highly fragmented and growing, destined for consolidation
Rationale for M&A – the external market view The EMS market is a highly fragmented and growing market, pre- destined for consolidation through M&A Highly fragmented market Large, growing market High customer loyalty Clear economies of scale • 1.700 EMS companies in • EMEA’s EMS market has a • Cicor
Slide 16: Cicor has acquired 7 companies since launch of its M&A strategy
Introduction - Timeline of executed transactions Cicor has successfully acquired 7 companies since launch of its active M&A strategy Carve-out from Jan-2023 Further strengthening of Dec-2021 presence in Germany Jan-2024 est. Mar-2024 Strengthening presence through acquisition of Expansion of presenc
Slide 17: Acquisition of STS Defence Limited
Recent acquisitions Acquisition of STS Defence Limited Key facts Product examples Location: Gosport, UK (120km south of London) FTE: 150 Design Financials: GBP 27.5M of sales (FY 2023) with of Type 26 has acquired 100% of the shares of strong operating margins communication masts the UK based STS De
Slide 18: Acquisition of Evolution Medtec Srl
Recent acquisitions Acquisition of Evolution Medtec Srl Key facts Product engineering Location: Bucharest, Romania examples FTE: 25 Sales: in the lower single-digits million Euro has acquired 100% of the shares range for FY 2023 of the Romanian engineering EBITDA: margin comparable to Cicor in FY 20
Slide 19: Carve-out of three manufacturing sites from TT Electronics
Recent acquisitions Carve-out of three manufacturing sites from TT Electronics Key facts Production sites Locations: Hartlepool, UK; Newport, UK; 25’000 sq.m of manufacturing space Dongguan, China FTE: 500 has signed an agreement to acquire Purchase consideration (EV): GBP 20.8 mln TT Electronics Io
Slide 20: Cicor's unique position to create value through M&A
M&A summary Cicor’s unique position to create value through M&A Strong financial foundation Attractive external market with existing credit lines and modest leverage for an inorganic growth strategy Cicor’s recipe Proven track-record & expertise for M&A Focus on known core business of delivering suc
Slide 21: Financial Results FY 2023
Peter Neumann Financial Results FY 2023 21
Slide 22: Long-term view – Impact of Cicor growth strategy
Performance 2018 – 2023 Long-term view – Impact of Cicor growth strategy Cicor Group 390 20% • Change in sales at reported FX rates +24.5% (at constant FX 350 313 rates +27.5%) 300 191 15% 248 254 239 250 9.9% 9.8% 215 155 • Organic sales growth of 11.1% 1) 200 9.7% 125 122 9.0% 11.6% 10% 122 10.3%
Slide 23: Record sales and core results from organic growth and acquisitions
Key figures 2023 Record sales and core results from organic growth and acquisitions 1) 1) Orders received Net sales EBITDA Core EBIT Core net profit +39.8% +52.9% +11.4% +24.5% 45.1 32.7 399.8 389.9 358.9 +35.6% 313.2 32.3 16.7 21.4 12.3 10.3% 11.6% 6.8% 8.4% 3.9% 4.3% (ROS) 2022 2023 2022 2023 2022
Slide 24: Profitable growth in EMS Division
Profitable growth in EMS Division Performance 2018 – 2023 Cicor Group EMS Division AS Division 390 348 400 20% 350 12.5% 14% 350 20% 270 350 300 10.7% 12% 300 19.1% 17.8% 313 14.1% 300 191 15% 185 193 9.2% 169 16.9% 15% 254 250 10% 250 14.4% 248 239 8.0% 8.1% 8.4% 250 11.6% 195 14.0% 215 155 10.3% 2
Slide 25: Consolidated Income Statement
in TCHF Consolidated Income Statement 2023 in % 2022 in % %YoY • Record high in Net sales and EBITDA Net sales 389 890 100.0 313 193 100.0 24.5 • Strong contribution from EMS division and Material expenses -207 150 -53.1 -167 077 -53.3 24.0 economies of scale results in increased overall EBITDA marg
Slide 26: Sales contribution
FY 2023 in CHF mio Sales contribution • Strong organic sales growth in EMS +24.5% division and good contribution from newly (+76.7) acquired companies. 389.9 -2.4 +0.2 +37.0 • Negative currency impact of -3.0% (CHF -9.4 313.2 +51.4 -9.4 mio) mainly due to the devaluation of GBP, RON and EUR vs. CHF.
Slide 27: Consolidated Balance Sheet
in TCHF Consolidated Balance Sheet 2023 in % 2022 in % • Focus on ONWC and optimization of treasury activities delivering strong 2023 results. Current assets 251’896 69.8 251’422 68.6 Despite revenue growth of 24.5% balance Non-current assets 109’217 30.2 115’313 31.4 sheet size slightly reduced dem
Slide 28: Consolidated Cash Flow Statement
in TCHF Consolidated Cash Flow Statement • Positive cash flow from operating activities driven by strong net income performance and focus on working capital management. • Focus on working capital and normalization of supply chain resulted in a positive cashflow • Positive free cash flow before acqui
Slide 29: Stabilization in Operating net working capital (ONWC)
Stabilization in Operating net working capital (ONWC) Operating Net Working Capital • Stabilization in half year 2023 turned into a decrease in second half of 2023, as a result of strong management focus on working capital management. 150 100 • Increase in ONWC from recent acquisitions is main Opera
Slide 30: Capex for Property, plant and equipment
Capex for Property, plant and equipment 30 28.4 • No capacity expansion in 2023 25 4.7% 1) • Investment in PPE was in line with our expectations and support our further CAPEX in % of Net Sales 4.1% CAPEX in CHF million 3.9% 3.7% growth strategy 20 3.6% 3.4% 17.5 3.0% • Capex of 3% according our mid-
Slide 31: Return on Invested Capital
Return on Invested Capital • Strong ROIC progression in 2023 inline with mid-term guidance to be above 15%. 35 15 • ROIC improvement driven by 14.4% • Revenue growth (25%) 30 11.9% 11.3% 11.3% • profitability improvements (160 bps) Rolling Core EBIT in MCHF 25 • invested capital efficiency (treasury
Slide 32: Key Figures per Share
Key Figures per Share 2023 2022 % YoY • The conversion of the MCN will result in 1,267,116 additional shares until 2027. Number of registered shares issued 3 411 169 3 409 542 +0.0% These shares are considered outstanding Number of Treasury shares - 249 404 - 241 916 +3.1% for both EPS and market ca
Slide 33: Two acquisitions successfully completed in 2023
Two acquisitions successfully completed in 2023 Acquisitions PM AFT 2023 Cicor Digital Elektronik (PM) • Two sites in Thuringia (Germany) and one site Cash paid 23’498 1’368 24’866 in Borj-Cedria (Tunisia) Direct costs related to acquisition 421 157 578 • Closing of share deal in January 2023 for a
Slide 34: Outlook & Closing
Alexander Hagemann Outlook & Closing 34
Slide 35: Accelerated growth expected to continue in 2024
Guidance Accelerated growth expected to continue in 2024 • Order backlog equivalent to almost one year's sales • Important new projects are entering series production • The consolidation of acquired companies will additionally lead to a significant increase in sales and earnings • The appreciation o
Slide 36: Financial mid-term objectives: Continuing on the growth trajectory
Financial mid-term objectives: 3 - 4 year horizon Continuing on the growth trajectory 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 well positioned to face economic
Slide 37: Cicor – an asset for your portfolio
Reasons to invest 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 strate
Slide 38: Agenda 2024
Investor Relations Agenda 2024 March 6 Annual Report & Sustainability Report 2023 April 16 Business Update Q1/2024 April 18 Annual General Meeting (AGM) 2024 in Zurich July 24 Interim Report 2024 October 15 Business Update Q3/2024 March 21 Kepler Cheuvreux Swiss Digital Seminar in Zurich September 1
Slide 39: Analysts
Cicor Technologies Ltd. Analysts Kepler Cheuvreux Research Partners AG 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 Alster Research Emrah Bas
Slide 40: 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 40
Slide 41: Thank you
Thank you cicor.com Cicor Group @cicor.group