Huber + Suhner Ag · SIX:HUBN
Huber + Suhner — H1 2024 Earnings Presentation
32 slides from Huber + Suhner's earnings presentation, Aug 20, 2024
Slide 1: HUBER+SUHNER
HUBER+SUHNER
Slide 2: 2024 half-year results
2024 half-year results 20 August 2024 | Half-year media and analysts' webcast 2024 2
Slide 3: Agenda
Agenda Overview 1st half-year 2024 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2024 Urs Ryffel (CEO) Q&A Financial calendar 20 August 2024 | Half-year media and analysts' webcast 2024 3
Slide 4: Considerable increase in order intake – Net sales below strong prior-year figure
Considerable increase in order intake – Net sales below strong prior-year figure MCHF Strong upturn in demand • Book-to-bill rate improved to 1.21 (PY 0.95) H1/2024 H1/2023 Δ% • Order backlog increased by almost CHF 80 million Order intake 521.0 453.3 14.9 • Organic shortfall in net sales 7.3 % • Ne
Slide 5: Industry segment
Industry segment Showing good profitability after bottoming out in order intake MCHF Key aspects • Order intake overall turned positive in first half of H1/2024 H1/2023 Δ% 2024 Order intake 165.7 148.6 11.5 • Solid demand in aerospace and defense growth initiative enabled the segment to escape the t
Slide 6: Communication segment
Communication segment High order intake and improved profitability in a challenging market environment MCHF Key aspects • Global communication market environment H1/2024 H1/2023 Δ% persistently weak; no recovery yet of the market as a whole Order intake 214.9 148.1 45.1 • Strong upward trend in orde
Slide 7: Transportation segment
Transportation segment Solid profitability at lower volumes MCHF Key aspects • Following the strong recovery of the previous two H1/2024 H1/2023 Δ% years, orders did not reach the highs of the prior-year period Order intake 140.4 156.6 (10.4) • Automotive subsegment secured further important nominat
Slide 8: Net sales by market segment
Net sales by market segment Year-on-year decline reflected across the three segments MCHF 200 (8.2 %) 150 (5.5 %) 33% 31% (15.5 %) 100 H1/2024 50 36% 0 Industry Communication Transportation Industry H1/2023 Communication H1/2024 Transportation 20 August 2024 | Half-year media and analysts' webcast 2
Slide 9: Net sales by region
Net sales by region Little shift between the regions MCHF 300 250 (7.5 %) 27% 200 150 H1/2024 55% (10.6 %) 100 (14.9 %) 18% 50 0 EMEA (incl. CH) Americas Asia-Pacific EMEA (incl. CH) H1/2023 Americas H1/2024 Asia-Pacific 20 August 2024 | Half-year media and analysts' webcast 2024 9
Slide 10: Agenda
Agenda Overview 1st half-year 2024 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2024 Urs Ryffel (CEO) Q&A Financial calendar 20 August 2024 | Half-year media and analysts' webcast 2024 10
Slide 11: Trend reversal achieved
Trend reversal achieved Turnaround compared to second half of 2023 MCHF 600 11.3% 12% 10.3% 9.8% 9.6% 500 10% 8.2% 400 8% 300 6% 200 4% 100 2% 498 477 477 477 453 477 368 374 521 431 0 0% H1/22 H2/22 H1/23 H2/23 H1/24 Order intake Net sales EBIT-margin 20 August 2024 | Half-year media and analysts'
Slide 12: Factors impacting order intake
Factors impacting order intake Strong organic growth in Communication and Industry segment, adverse FX MCHF 550 COM TRA + 67.7 MCHF + 14.9 % 500 IND 521.0 450 + 20.0 MCHF + 74.0 MCHF - 12.9 MCHF + 13.4 % + 50.0 % - 8.3 % 453.3 Currency, portfolio & copper Organic development + 81.1 MCHF - 13.4 MCHF
Slide 13: Factors impacting net sales
Factors impacting net sales Organic decline in all three market segments due to weak order intake in H2/2023 MCHF 500 IND COM 450 TRA - 46.7 MCHF - 21.9 MCHF - 8.3 MCHF - 4.7 MCHF - 9.8 % - 13.7 % - 4.9 % - 3.1 % 477.3 400 430.6 Organic growth Currency, portfolio & copper - 34.9 MCHF - 11.8 MCHF - 7
Slide 14: Improved gross margin
Improved gross margin Reduced cost base, lower material prices, and less inventory value adjustments MCHF 200 40% 36.5% 35.8% 36.2% 34.8% 34.9% 150 30% 100 20% 50 10% 174 166 167 134 156 0 0% H1/22 H2/22 H1/23 H2/23 H1/24 Gross profit Gross margin 20 August 2024 | Half-year media and analysts' webca
Slide 15: Operating expenses
Operating expenses Proactive cost management MCHF 160 28.3% 30% 26.9% 25.5% 24.8% 25.3% 140 122 118 121 120 115 106 27 22 29 20% 100 25 21 80 30 29 29 28 28 60 10% 40 65 67 62 62 57 20 0 0% H1/22 H2/22 H1/23 H2/23 H1/24 S&M R&D Admin in % of net sales 20 August 2024 | Half-year media and analysts' w
Slide 16: EBIT by market segment
EBIT by market segment Good in Industry, improved in Communication, solid in Transportation MCHF H1/2024 in % H1/2023 in % Industry 22.9 17.0 30.2 18.9 Communication 10.4 6.7 6.2 3.7 Transportation 12.4 8.9 15.5 10.5 Corporate (4.3) (4.9) Total EBIT 41.5 9.6 47.0 9.8 20 August 2024 | Half-year media
Slide 17: Currency situation 2024
Currency situation 2024 CHF depreciated against all relevant currencies; most average rates still behind H1/2023 FX / MCHF 10% 30.6.2024 vs. 31.12.2023 Ø H1/2024 vs. Ø H1/2023 4.9% 5.1% 4.8% 5% 4.4% 3.4% 2.3% 2.1% 1.6% 0.6% 0% -2.1% -1.9% -3.7% -3.6% -5% -5.4% -10% RMB AUD INR EUR USD GBP PLN Ø H1/2
Slide 18: Financial result
Financial result Higher interest rate income and lower FX losses led to improved financial result MCHF 1 0.7 0 -1.1 -1.4 -1 -0.2 -1.6 -0.4 -2 H1/2023 H1/2024 Net currency effects Other financial result 20 August 2024 | Half-year media and analysts' webcast 2024 18
Slide 19: Group tax rate
Group tax rate Favourable country mix and positive contribution from R&D tax benefits 25% 20% 18.9% 16.8% 15.8% 15.3% 15% 10% 5% 0% H1/2023 H1/2024 Expected tax rate Effective tax rate 20 August 2024 | Half-year media and analysts' webcast 2024 19
Slide 20: Overview balance sheet
Overview balance sheet Unchanged high cash position MCHF 30.6.2024 31.12.2023 30.6.2023 Cash and cash equivalent / marketable securities 152 163 (7 %) 112 Other current assets 372 321 16 % 384 Non-current assets 301 293 3% 287 Financial liabilities - - - Other liabilities 202 167 21 % 190 Equity* 62
Slide 21: Overview cash flow
Overview cash flow Doubling of free operating cash flow MCHF H1/24 H1/23 Cash flow from operating activities 37.8 31.1 Cash flow from investing activities (excl. marketable securities) (18.4) (21.5) Free operating cash flow 19.4 9.6 Dividend payment (31.4) (38.8) Dividend payment to minorities - (0.
Slide 22: Financial assessment H1/2024
Financial assessment H1/2024 Strong operational performance – with clear upward trend Organic order growth of 17.9 % Organic sales decline of 7.3 % EBIT margin of 9.6 % well within medium-term target range Continuous low effective tax rate of 15.3 % Free operating cash flow doubled to CHF 19.4 milli
Slide 23: Agenda
Agenda Overview 1st half-year 2024 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2024 Urs Ryffel (CEO) Q&A Financial calendar 20 August 2024 | Half-year media and analysts' webcast 2024 23
Slide 24: Market trends in Industry
Market trends in Industry Different dynamics in the various submarkets • Industry markets generally less dynamic with some individual exceptions • After overstocking due to longer delivery times post-Covid, inventory levels in supply chains have largely normalised • Test and measurement market stabi
Slide 25: Market trends in Communication
Market trends in Communication Regional diversification / differentiated technologies mitigate weak market demand • Structurally, the communications market is only recovering very slowly from last year's slump – no significant improvement in sight for the coming months • Inventory levels in supply c
Slide 26: Market trends in Transportation
Market trends in Transportation Progress on ecological mobility, but slower than planned • Ecological mobility remains a strong fundamental driver; however, progress is not as projected due to several factors (substantial investments in infrastructure in combination with fast technological progress
Slide 27: Outlook 2024
Outlook 2024 Business outlook for 2024 and beyond • Strategy of balanced diversification provides the company with resilience in a still volatile economic environment • Strong order intake and increased backlog in the first half of 2024 represent the base for slightly higher sales in the second half
Slide 28: Agenda
Agenda Overview 1st half-year 2024 Urs Ryffel (CEO) Financial results Ivo Wechsler (CFO) Outlook 2024 Urs Ryffel (CEO) Q&A Financial calendar 20 August 2024 | Half-year media and analysts' webcast 2024 28
Slide 29: Q&A
Q&A 20 August 2024 | Half-year media and analysts' webcast 2024 29
Slide 30: Financial calendar
Financial calendar Capital Market Day (Herisau) 20.9.2024 Net sales / Order intake (9 months) 2024 22.10.2024 Net sales / Order intake (12 months) 2024 23.1.2025 Annual Report 2024 11.3.2025 Media and analysts’ conference 11.3.2025 Annual General Meeting (Rapperswil SG) 2.4.2025 Figures are availabl
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