Comet Holding Ag · SIX:COTN
Comet — H1 2023 Earnings Presentation
26 slides from Comet's earnings presentation, Jul 28, 2023
Slide 1: H1 2023 Financial Results
H1 2023 Financial Results July 28, 2023 Stephan Haferl, CEO Lisa Pataki, CFO Comet AG Herrengasse 10 CH-3175 Flamatt T +41 31 744 90 00 www.comet.tech
Slide 2: Cautionary statement regarding Forward Looking Statements
Cautionary statement regarding Forward Looking Statements This document contains forward-looking statements about the Comet Group that may be subject to uncertainty and risk. Readers should therefore be aware that such statements may deviate from actual future outcomes or events. Forward- looking st
Slide 3: Agenda
Agenda 01 Business & Industry Review 02 Financial Results 03 Outlook 04 Q&A H1 2023 Financial Results 7/28/2023 3
Slide 4: Agenda
Agenda 01 Business & Industry Review 02 Financial Results 03 Outlook 04 Q&A H1 2023 Financial Results 7/28/2023 4
Slide 5: H1 results reflect correction in the semi cycle
Business & Industry Review H1 results reflect correction in the semi cycle Semiconductor cycle bottomed out in Q2 Stronger correction than expected earlier in the year Incoming orders and backlog halved compared to H1/22; H1 book-to-bill 0.8 207.0 6.9% Net sales in CHF millions EBITDA margin Driven
Slide 6: Pronounced weakness in semiconductor market contrasts with resilience in other industries
Business & Industry Review Pronounced weakness in semiconductor market contrasts with resilience in other industries Semiconductors Automotive Aerospace Security Sales of DRAM and NAND High resilience of the automotive Aerospace industry continues to Increased mobility and higher equipment hit harde
Slide 7: Divisions on different trajectories
Business & Industry Review Divisions on different trajectories PCT IXS IXM Production capacity load dropped Focus on semi market despite correction Sales of new products driving growth Capacity adaptations: operations headcount New contracts with semiconductor and Supply chain issues further eased r
Slide 8: Summary
Business & Industry Review Summary • Semiconductor market correction stronger than expected a few months ago • X-ray divisions decoupled from correction in PCT • Targeted cutbacks, impacted EBITDA in H1 • Synertia® market introduction program intensified • Preparing for turnaround in semi cycle, lon
Slide 9: Agenda
Agenda 01 Business & Industry Review 02 Financial Results 03 Outlook 04 Q&A H1 2023 Financial Results 7/28/2023 9
Slide 10: Financial highlights
Financial Results Financial highlights • Semi driven decline in Net Order Intake and Sales • Lower volumes pressuring margin performance • Corrective actions depress margins in H1/23 • Strong balance sheet enables priority Capex projects to proceed • Positive operating cash flow despite downturn • S
Slide 11: Pronounced weakness in semi driving decline in results
Financial Results Pronounced weakness in semi driving decline in results in CHF millions, otherwise indicated H1 2023 H1 2022 Y-O-Y (1) Net sales 207.0 267.5 −22.6% Gross profit margin 39.2% 41.4% −220 bps EBITDA 14.3 37.7 −62.1% EBITDA margin 6.9% 14.1% −720 bps Net income 1.9 23.1 −91.6% Return on
Slide 12: Steadily improving X-Ray margins a bright spot amidst disappointing PCT performance
Financial Results Steadily improving X-Ray margins a bright spot amidst disappointing PCT performance Net sales [in CHF millions] EBITDA margin PCT IXS IXM 19.8% 20.4% 0.3% -2.6% 15.0% 5.3% 173.5 106.8 60.0 56.8 41.0 50.8 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 Net sales −38.4% Net sales −5.
Slide 13: Strong balance sheet ensures resilience and flexibility
Financial Results Strong balance sheet ensures resilience and flexibility in CHF millions, otherwise indicated H1 2023 H1 2022 Y-O-Y (1) Free cash flow −15.3 3.0 n/m Net working capital 131.0 112.4 +16.5% CapEx 19.4 6.9 +180.4% CapEx as % of sales 9.4% 2.6% +680 bps Jun 2023 Dec 2022 Change (1) Cash
Slide 14: Agenda
Agenda 01 Business & Industry Review 02 Financial Results 03 Outlook 04 Q&A H1 2023 Financial Results 7/28/2023 14
Slide 15: Stable market environment for x-ray divisions, WFE spend expected to rebound in 2024
Outlook Stable market environment for x-ray divisions, WFE spend expected to rebound in 2024 Semiconductors Automotive Aerospace Security WFE market gradually recovering Improved vehicle production; Resilient demand for air travel Security market volume remains in H2/23 low impact of supply shortage
Slide 16: Consistent implementation of strategy remains key
Outlook Consistent implementation of strategy remains key • ensure organizational readiness for the upturn in 2024, balance with correction • accelerate new Synertia® RF Generator market penetration PCT • expand market share in RF matchbox, maintain vacuum capacitors share • expansion of volume prod
Slide 17: Outlook: gradual recovery in H2, semi cycle to turn in 2024
Outlook Outlook: gradual recovery in H2, semi cycle to turn in 2024 Cyclical correction in the semiconductor industry has passed its Guidance FY23 low point in Q2; gradual recovery expected in H2/23 numerous macroeconomic and geopolitical uncertainties persist Net sales (in CHF millions) Decline in
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix cemet group
Slide 20: Definition of financial key figures
Appendix Definition of financial key figures (pages 11 to 13) Book-to-bill ratio: Ratio of orders received to the amount billed for a specific period Capex: Purchases of property, plant and equipment and intangible assets shown under investing activities in the consolidated cash flow statement EBITD
Slide 21: Consolidated statement of income
Appendix Consolidated statement of income in CHF millions (rounding differences may occur) H1 2023 H1 2022 Change Net sales 207.0 267.5 -22.6% Gross profit 81.1 110.7 -26.7% • Other operating income 3.3 2.4 38.9% • Development expenses -32.7 -31.2 4.7% • Marketing and selling expenses -24.3 -26.7 -9
Slide 22: Consolidated statement of cash flows
Appendix Consolidated statement of cash flows in CHF millions (rounding differences may occur) H1 2023 H1 2022 Change Net cash provided by operating activities 2.3 9.2 -75.1% in % of net sales 1.1% 3.4% -230 bps Net cash (used in) investing activities -17.6 -6.2 183.0% Free cash flow -15.3 3.0 n/m i
Slide 23: Consolidated balance sheet
Appendix Consolidated balance sheet in CHF millions (rounding differences may occur) H1 2023 in % YE 2022 in % Current assets 266.9 54.9% 344.8 61.9% Non-current assets 219.0 45.1% 212.0 38.1% Total assets 485.9 100.0% 556.8 100.0% Current liabilities 92.5 19.0% 128.0 23.0% Non-current liabilities 9
Slide 24: Net sales walk H1 2022 to H1 2023
Appendix Net sales walk H1 2022 to H1 2023 in CHF millions – 22.6% Volume effect Negative in local currencies currency effect CHF -49.7 m (-18.6%) CHF -10.8 m (-4.0%) H1 2023 Financial Results 7/28/2023 24
Slide 25: EBITDA margin walk H1 2022 to H1 2023
Appendix EBITDA margin walk H1 2022 to H1 2023 – 720 bps – 1050 bps 17.4% 14.1% +330 bps -850 bps 6.9% -130 bps -70 bps H1 2023 Financial Results 7/28/2023 25
Slide 26: cemet
cemet group