Cicor Technologies · SIX:CICN
Cicor Technologies — Non-Deal Roadshow (July 2024)
42 slides from Cicor Technologies's roadshow presentation, Jul 3, 2024
Slide 1: ZKB London Roadshow 2024
ZKB London Roadshow 2024 Cicor Technologies Ltd. July 3, 2024
Slide 2: Disclaimer
July 3, 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 an
Slide 3: The Cicor Group
cicor The Cicor Group
Slide 4: Turning ideas into advanced electronic solutions
Electronification of everything Turning ideas into advanced electronic solutions Medical Industrial Aerospace & Defence (A&D) 25% of pro forma sales 2024 37% of pro forma sales 2024 23% of pro forma sales 2024 Cicor helps improve Cicor is at the forefront Solutions from Cicor in global healthcare by
Slide 5: Facts and figures: The Cicor Group in 2023
The Cicor Group in 2023 Facts and figures Sales growth EBITDA margin 24.5% to CHF 390m 11.6% Organic growth of 11.1%, gaining Top profitability amongst peers market share Sales to strategic markets Book-to-bill rate 84% 1.03 Strengthened focus on Industrial, Despite a recessionary Medical, Aerospace
Slide 6: One stop shop – creating strategic partnerships with customers
Contract development and manufacturing organisation - CDMO One stop shop – creating strategic partnerships with customers 6
Slide 7: Global footprint: Close to customers and competitive
Global footprint Close to customers and competitive 7
Slide 8: 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 9: Cicor's Domain Expertise
Aerospace & Defence – selected references Cicor’s Domain Expertise Communications and Networks Electronic Warfare Control and Instrumentation • Secure networks • Advanced signal processing • Control systems • Satellite communications • Electronic Support Measures • Engine management • Antennas and R
Slide 10: 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 • CDMO fo
Slide 11: M&A Update
cicor M&A Update
Slide 12: 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 13: The EMS market is highly fragmented and growing, pre-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 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: Profitable growth accelerated since 2022
Sales and EBITDA-Margin development since 2016 Profitable growth accelerated since 2022 600 18% Key success factors 16% • Value-accretive buy-and-build strategy 500 14% • Organic sales growth above market 11.6% 11.5% 400 10.3% 12% growth 9.9% in CHF m 9.8% 9.7% 10% 300 8.9% 9.0% 480 • Focus on busin
Slide 16: 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 17: 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 18: 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 acquired 100% of the shares of Purchase consideration (EV): GBP 20.8 mln TT Electronics Io
Slide 19: 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 20: Financial Results FY 2023
cicor Financial Results FY 2023
Slide 21: Change in Accounting Principles: Offset Goodwill in Equity
Change in Accounting Principles Offset Goodwill in Equity • The Board of Directors of Cicor has decided that in CHF million June 2023 (6 months) reported change restated December 2023 (12 months) reported change restated goodwill from acquisitions will be offset directly Goodwill 20.2 -20.2 0.0 16.6
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 EBIT Net profit +39.8% +65.1% +11.4% +24.5% 45.1 29.0 399.8 389.9 358.9 313.2 32.3 +28.1% 17.6 11.8 9.2 10.3% 11.6% 5.6% 7.4% 2.9% 3.0% (ROS) 2022 2023 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 economies of scale results in increased Material expenses -207 150 -53.1 -167 077 -53.3 24.0 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. Despite revenue growth of 24.5% balance Current assets 251’896 73.1 251’422 72.9 sheet size slightly reduced demonstrating Non-current assets 92’626 26.9 93’
Slide 28: Consolidated Cash Flow Statement
in TCHF Consolidated Cash Flow Statement 2023 2022 • Positive cash flow from operating activities Net profit 11 760 9 178 driven by strong net income performance Depreciation, amortization and impairment 16 090 14 682 and focus on working capital management. Other non cash items 8 371 - 877 • Focus
Slide 29: Stabilization in Operating net working capital
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 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 ou
Slide 31: Return on Invested Capital
ROIC Return on Invested Capital 30 15 • Strong ROIC progression in 2023 inline with mid-term guidance to be above 15%. 11.9% 14.4% 25 11.3% 11.3% • ROIC improvement driven by • Revenue growth (24.5%) 20 9.0% 10 • profitability improvements (130 bps) EBIT in MCHF ROIC in % 6.7% • invested capital eff
Slide 32: Long-term development of earnings per share
EPS Long-term development of earnings per share 4.19 30 3.72 4.00 • Underlying 2023 net 3.32 earnings per share at CHF EBIT and Net profit in CHF million 25 2.96 4.19 Earnings per Share in CHF 2.90 2.71 2.66 3.00 20 2.47 • Underlying earnings 2.29 exclude FX losses of CHF 15 29.0 2.00 4.1 million an
Slide 33: Key Figures per Share
Key Figures per Share 2023 2022 Change % • 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
Slide 34: 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 35: Outlook & Closing
cicor Outlook & Closing
Slide 36: 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 37: Financial mid-term objectives
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 38: 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 39: Agenda 2024
Investor Relations Agenda 2024 July 24 Interim Report 2024 October 15 Business Update Q3/2024 September 18 Investora 2024 in Zurich September 23 Baader Investment Conference 2024 in Munich November 25 - 27 Deutsches Eigenkapitalforum in Frankfurt We plan to participate in various conferences and roa
Slide 40: Analysts
Cicor Technologies Ltd. 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 Al
Slide 41: 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 41
Slide 42: Thank you
Thank you cicor.com Cicor Group @cicor.group