Scanfil Oyj · OMXHEX:SCANFL
Scanfil Oyj — Investor Day (September 2021)
64 slides from Scanfil Oyj's investor day presentation, Sep 14, 2021
Slide 1: Scanfil − trusted manufacturing partner
Scanfil − trusted Scanfil − trustedpartner manufacturing manufacturing partner TIMO SONNINEN, VP SALES CAPITAL MARKETS DAY HELSINKI, FINLAND 14 SEPTEMBER 2021
Slide 2: Agenda
Agenda 9.30-9.55 Enrolling at the venue 10.00-10.05 Opening 10.05-10.35 Strategy and sustainability, CEO Petteri Jokitalo 10.30-11.00 Sales, VP Sales Timo Sonninen 11.00-11.30 Operations, COO Riku Hynninen 11.30-12.00 Lunch break 12.00-12.30 Scanfil SMART, CTO Markku Kosunen 12.30-13.00 Financials ,
Slide 3: Contents
Contents 1. Scanfil in brief 2. Strategy and business drivers 3. Outlook for 2021 and long-term targets 4. Sustainability 5. Customers’ and employees’ voice 6. Q&A 3
Slide 4: Scanfil in brief
Scanfil in brief FACTORIES 3% 4% 28 % 9% Sweden 2 18 % Finland 1 36 % 10 % Estonia 1 Turnover Personnel Q3/20 – Q2/21 11 % ~3,300 632 MEUR 24 % 22 % 14 % 5% 16 % Advanced Consumer Applications Automation & Safety Poland 2 China 1 Connectivity Poland China Estonia Finland Energy & Cleantech USA 1 Med
Slide 5: Trusted manufacturing partner: added value from an idea into production
Trusted manufacturing partner: added value from an idea into production CUSTOMER SCANFIL After-sales Industralisation services Requirement Vertically integrated specifications production services Product Design End-of-Life 5
Slide 6: Strategy and business drivers
Strategy and business drivers
Slide 7: Strategy and competitive advantages
Strategy and competitive advantages • Products with electronics • Specified in high mix - low volume products and short production series • Industrial and MedTech-customers • Clear factory strategy; close to customer R&D or customer’s markets • Global factory network
Slide 8: Stable predictability
Stable predictability • Turnover growth 16%, (CAGR, 2012–2020) • Operating profit growth 24%, (CAGR 2012–2020) • Broad customer base reduces cyclicality of 19 % 27 % 100 % operations 34% 75 % • Dependency on a single customer has reduced 69% significantly 16% 50 % • Industrial customers have long-te
Slide 9: Growth drivers
Growth drivers • Historical market growth of global EMS 3–6% p.a. • Increasing demand for electronics due to digitalisation and new technological innovations • Customer base benefits from global megatrends: global leaders in their own segments and early-stage growth companies • M&A
Slide 10: Profitability drivers
Profitability drivers • Flexible cost-base and low fixed costs • Clear factory strategy and operational model • Business model enables moderate investment levels and depreciations • Business culture. Fast decision-making process and efficient execution • Efficient use of assets
Slide 11: Outlook for 2021 Long-term targets
Outlook for 2021 Long-term targets
Slide 12: Outlook for 2021
Outlook for 2021 Scanfil estimates that its turnover for 2021 will be EUR 630–680 million (previous: EUR 600–640 million) and its adjusted operating profit will be EUR 41–46 million (previous: EUR 40–44 million). The guidance for 2021 involves uncertainty arising from the potential negative impact o
Slide 13: Long-term targets
Long-term targets Scanfil’s long term target: In 2023, Scanfil is organically aiming for EUR 700 million turnover and 7% operating profit.
Slide 14: Sustainability at Scanfil
SCANEFIL Sustainability at Scanfil:
Slide 15: Sustainability approach
Sustainability approach Key themes of our responsibility are Environment The focus areas of environmental responsibility in improving productivity and efficiency are the efficient use of raw materials, control of energy and water consumption, as well as the management and reduction of waste, and the
Slide 16: Sustainability areas 2021
Sustainability areas 2021 Environment Responsible Offering Responsible Consumption Customer Focused • Reduce carbon footprint 4,2 % yearly • Customer satisfaction (KPI) • Fossil free energy consumption 50% 2030 • Product quality (KPI) • Reduce energy consumption - 3%/VA • Delivery reliability (KPI)
Slide 17: Customers’ and employees’ voice
Customers’ and employees’ voice
Slide 18: Customer satisfaction – Net Promoter Score (NPS)
Customer satisfaction – Net Promoter Score (NPS) Scanfil NPS = 25
Slide 19: Employee engagement
Employee engagement SATISFACTION & MOTIVATION LOYALTY 80 68 68 68 [0] 80 77 71 73 76 77 77 [0] 67 High score (75-100) 70 63 70 61 Medium score (60-74) 60 60 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Low score (0-59)
Slide 20: Q&A
SCANFIL Q&A
Slide 21: Scanfil − trusted manufacturing partner
Scanfil − trusted manufacturing partner TIMO SONNINEN, VP SALES CAPITAL MARKETS DAY HELSINKI, FINLAND 14 SEPTEMBER 2021
Slide 22: Contents
Contents 1. Sales excellence 2. Customer segments 3. Service portfolio 4. Why our customers choose us? 5. Q&A 22
Slide 23: Sales Excellence
Sales Excellence Processes Target oriented • New customer acquisition • Target setting and follow-up • RFQs • Rewards and bonuses • Sales forecast processes Digital tools Customer plans 100% excellence • Customers have dedicated sales manager • Upsales CRM Targets • Customer portal (upcoming) • Al
Slide 24: Customer Segments
Customer Segments ADVANCED CONSUMER AUTOMATION & SAFETY CONNECTIVITY ENERGY & CLEANTECH MEDTECH & LIFE SCIENCE APPLICATIONS • Ageing population • Industrial automation • Digitalisation • Energy efficiency, renewable • Urbanisation energy production and • The increasing needs for • Robotics • Increas
Slide 25: Our offer throughout your products life cycle
Our offer throughout your products life cycle Product Design Industrialisation Manufacturing Product Maintenance End of life Services services services services services Supply chain System Management Integration Supply Chain Design Repairs & Refurbish Product Development Value stream mapping Face l
Slide 26: Our Core - Manufacturing Services
SERVICES Our Core - Manufacturing Services Electronics Manufacturing Mechanics Assembly System Integration Production Outsouring Full range of services, starting from Flexible manufacturing methods and In our System Integration offer, we Alongside outsourcing of the prototyping to manufacturing and
Slide 27: To-Life and To-Market
SERVICES To-Life and To-Market Product Development Design for Excellence Rapid Prototyping Test Development A wide range of design and Our goal with Design for Excellence Time-optimised prototyping is a vital Our test offer covers a wide range of development services for your products, is to support
Slide 28: Product Maintenance
SERVICES Product Maintenance Distribution Repair and Refurbish Cost Improvements Supply Chain Traditional turnkey manufacturing and In and out of warranty repair services Vast variety of cost improvement Scanfil’s service concept covers the assembly services connected with our for products made by S
Slide 29: Services to different types of customer
Services to different types of customer Start-ups Established To-life and to-market services. Manufacturing, to-life, to-market and maintenance services. Small more risky customers with huge growth potential. Approximately 15% Our bread and butter customer niche. of our customers belong to this Appr
Slide 30: Why our customers choose us?
Why our customers choose us? Service portfolio Industry knowledge Global reach Quality Scanfil's offering includes extensive Scanfil has deep and long industry Scanfil has factories in seven Sophisticated measurement systems and services from an idea into production knowledge that benefits its count
Slide 31: Q&A
SCANFIL Q&A
Slide 32: Operations
Operations RIKU HYNNINEN, COO CAPITAL MARKETS DAY HELSINKI, FINLAND 14 SEPTEMBER 2021
Slide 33: Contents
Contents 1. Factory network 2. Global and local sourcing 3. Markets: components and materials 4. Flexibility of operations 5. Continuous performance improvement of quality, cost and delivery (QCD) 6. Q&A CONFIDENTIAL 14-Sep-21 33
Slide 34: Factory network
Factory network Sievi, Finland Åtvidaberg, Sweden Jari Linnala Steven Creutz Malmö, Sweden Pärnu, Estonia Jörgen Eriksson Risto Meskus Atlanta, USA Hamburg, Germany Orlando Martinez Jörgen Eriksson Wutha, Germany Sieradz, Poland Heribert Raaf Pawel Kurowski Close to customer market Myslowice, Poland
Slide 35: Global and local sourcing
Global and local sourcing Global Local • Global category managers • Each factory has dedicated professionals in sourcing • Category strategies • Aligned with global sourcing strategy • Global supplier relationship, cost and performance • Local supplier relationships, cost and performance • Scale adv
Slide 36: Markets: components and materials
Markets: components and materials Markets Effect on Scanfil • Global supply shortage in specific metals and semiconductors • Increase in prices and lead-times • COVID-19 related sudden lockdowns • Material shortages • Semiconductor prices up by 10-40% year-on-year • Persistent daily effort to mitiga
Slide 37: Flexibility of operations
Flexibility of operations Employees Equipment and tools Sub-contractors • Internal employees ca. 3,300* • Unified machinery across different • Used if we don’t have available capacity or factories (e.g. SMT, mechanics, AIV, capability • Ca. 1,300 external and temporary cobots) employees* • Usually l
Slide 38: Flexibility in operations
Flexibility in operations Employees Sub-contractors Equipment and tools Factory Network • Capacity • Standard equipment • Cross-manufacturing • ca. 3,300 internal and • Digital platforms • Non-core capabilities • Investments • ca. 1,300 external 38
Slide 39: Continuous performance improvement of quality, cost and delivery (QCD)
Continuous performance improvement of quality, cost and delivery (QCD) Long-term targets Annual targets Monthly execution follow-up Daily management • Strategic and proactive • Proactive and reactive • White boards • Strategic • Monthly reviews • ”One Plan” • KPI dashboard 39
Slide 40: Continuous improvement example: Factory A
Continuous improvement example: Factory A KPI TARGET ACTUAL Progress update / Main contributors OTD 99.5% 99.8% • OTD performance on target Performance Improvement action follow up (TOP 3 to 5 actions) Project type Focus area Main action Due Owner Status date Delivery Demand Improve forecast analysi
Slide 41: Q&A
SCANFIL Q&A
Slide 42: Lunch break – start at 12 pm Finnish time
Lunch break – start at 12 pm Finnish time 42
Slide 43: Scanfil SMART
Scanfil SMART MARKKU KOSUNEN, CTO CAPITAL MARKETS DAY 14 SEPTEMBER 2021
Slide 44: Contents
Contents 1. Vision and mission 2. Future Scanfil 3. Main projects in 2021 4. Benefits from SMART 5. Technology roadmap 6. Investment into the future 7. Q&A 44
Slide 45: Scanfil SMART vision and mission
Scanfil SMART vision and mission VISION: Future factory: • Connected, transparent, proactive and optimised E2E supply chain and operations MISSION: Technology driven transformation in • Customer experience • Employees experience and company reputation • Performance and competitiveness development •
Slide 46: Future State of Scanfil by Smart Operations
Connected Scanfil Factory network Future State of Scanfil by Smart Operations BIG DATA AI / ML driving Public data / Data Service Providers for enhanced data PAST FUTURE autonomous prescriptions operative DESCRIPTIVE PREDICTIVE decisions PRESCRIPTIVE ANALYTICS ANALYTICS ANALYTICS Supply chain PRESEN
Slide 47: Global SMART Main Projects 2021
Global SMART Main Projects 2021 ----------------------------------------------- Roll outs ------------------------------------------------------------------ -----------New------------ + Material AIV –Autonomous Cobots RPA – Robotic MES + Digital working eDHR – Digitalized Intelligent testers Smart S
Slide 48: Benefits from SMART
Benefits from SMART Smart operations provide foundation for long term customer partnership Customer People Performance • Customer portal - Digitalised • Enhanced learning with XR • Productivity services (Extended Reality Glasses) • Process Automation • Professional service for DFx • Digitalised work
Slide 49: Technology Roadmap
Technology Roadmap RPA Big Data + BI analytics Advanced analytics Predictive analytics AI/prescriptive analytics Cobots Incoming automation Smart wearables Digital twin Full virtual prototyping AIV THT automation Smart sensors Laser de-paneling 3D/4D printing RFID eDHR AR/VR Connected materials Smar
Slide 50: Investments into the future
Investments into the future • Long-term investment plans, 2-3% of turnover • Generic, optimal production equipment for high mix low volume • Globally harmonised machines and processes • Smart, flexible manufacturing automation • Digitalised and connected factories CONFIDENTIAL 14-Sep-21 50
Slide 51: Q&A
SCANFIL Q&A
Slide 52: Scanfil − creating value for investors
Scanfil − creating value for investors KAI VALO, CFO CAPITAL MARKETS DAY HELSINKI, FINLAND 14 SEPTEMBER 2021
Slide 53: Contents
Contents 1. Long-term turnover and profitability 2. How to get to 7%? 3. Cost structure 4. Balance sheet and finacial position 5. Cash flow and working capital 6. Dividend 7. Total shareholder return 8. Q&A 53
Slide 54: Long-term turnover and profitability
Long-term turnover and profitability MEUR Operating margin, adjusted 600 8% 7,6% 6,7% 6,8% 6,6% 7% 500 5,9% 6,3% 6,1% 6% 5,2% 4,4% 400 5% 4,5% 300 +12.2% 4% 3% 200 336,2 299,6 2% 100 1% 0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 2021 54
Slide 55: How to get to 7%
How to get to 7% • Factories strategic positions, as well as, their performances are frequently evaluated • Target in the long-term is to bring the factories strategic position stronger • Short-term target is to improve the factories performance in given strategic position 55
Slide 56: Cost structure
Cost structure % 100 4,5 5,2 4,4 5,9 6,3 7,6 6,7 6,8 6,6 6,1 2,5 1,8 1,8 1,6 2,3 1,7 2,4 2,5 2,3 2,2 90 9,6 10,1 8,4 10,9 9,0 8,4 7,6 7,3 7,9 8,2 80 14,4 14,3 15,1 15,3 15,4 14,9 15,0 16,6 16,2 16,7 70 60 50 40 69,8 68,8 67,3 67,2 68,8 68,0 68,3 68,9 65,6 67,1 30 20 10 0 2012 2013 2014 2015 2016 201
Slide 57: Balance sheet: strong financial position H1 2021
Balance sheet: strong financial position H1 2021 MEUR Inventories • Cash and cash equivalents totaled EUR 16.9 (25,8) million Goodwill 139,2 • Equity ratio 50.2% (54,3%) and net 191,7 Equity Other intangible gearing 13.0% (9.9%) assets 13,6 8,3 Interest bearing debt • Inventories EUR 139.2 (103.3) C
Slide 58: Strong financial position
Strong financial position Net debt Loans, leasing liabilities and cash Net debt / EBITDA 40,0 50,0 2,50 45,0 20,0 40,0 2,00 0,0 35,0 - 18,1 30,0 1,50 - 25,0 - 20,0 25,0 - 43,0 - 46,2 20,0 1,00 - 40,0 15,0 0,91 0,87 10,0 0,50 - 60,0 5,0 0,30 0,44 0,0 0,00 - 80,0 2018 2019 2020 H1 2021 2018 2019 2020
Slide 59: Cash flow from the operations - breakdown
Cash flow from the operations - breakdown EUR million 50 • Cash flow from the operating activities has 43 43 developed well 40 39 36 35 • 2020 is at same level as the year before, which is a 29 30 27 23 very good result for the year of COVID-19 21 20 • H1 2021 the cash flow from operating activities
Slide 60: Dividend
Dividend EUR 0,70 60% 53% 0,57 0,60 50% 0,50 0,45 40% 0,44 40% 0,4 0,40 36% 33% 34% 29% 30% 30% 28% 0,30 0,21 20% 0,20 0,17 0,14 0,15 0,15 0,13 0,1 0,11 0,08 0,09 10% 0,10 0,07 0,04 0,05 0 0% 0,00 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 EPS, reported DPS DPS per EPS • Dividend increased for
Slide 61: Total shareholder return vs. OMXH25
Total shareholder return vs. OMXH25 1400 1200 +995% 1000 800 600 400 +185% 200 0 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16 01.01.17 01.01.18 01.01.19 01.01.20 01.01.21 Scanfil share OMXH25 index Index, 100 = 1 January 2012 61
Slide 62: Q&A
SCANFIL Q&A
Slide 63: Suzhou virtual factory tour
Suzhou virtual factory tour Scanfil − trusted manufacturing partner TIMO SONNINEN, CAPITAL MARKETS VPDAY SALES HELSINKI, FINLAND 14 SEPTEMBER 2021
Slide 64: Closing remarks
Closing remarks SCANFIL 64