Huber + Suhner Ag · SIX:HUBN
Huber + Suhner — Investor Day (September 2022)
45 slides from Huber + Suhner's investor day presentation, Sep 23, 2022
Slide 1: Capital Market Day 2022
Capital Market Day 2022 eS a * I K\\V/ HUBER:SUHNER
Slide 2: Agenda
Agenda Topic Speaker Strategic overview Urs Ryffel, CEO Break-out sessions Industry Reto Bolt, COO Industry segment Communication Jürgen Walter, COO Communication segment Transportation Drew Nixon, COO Transportation segment Financial insights Ivo Wechsler, CFO 23 September 2022 | Capital Market Day
Slide 3: Strategic overview
Strategic overview Urs Ryffel, CEO 23 September 2022 | Capital Market Day 2022 3
Slide 4: HUBER+SUHNER at a glance
HUBER+SUHNER at a glance Our world is based on connections between humans, places, and systems. Net sales Net income They are essential for the functioning of our society. (MCHF) (MCHF) HUBER+SUHNER is the partner of choice for electrical and optical transmission of data and energy. 863 86.4 Founded
Slide 5: Global network: Engineering, production and sales
Global network Engineering, production and sales The global organisation places HUBER+SUHNER close to its customers. Over 400 sales employees serve customers face to face across all markets, continents and technologies. Network of distributors adds additional points of sales. Standard products are i
Slide 6: Five reasons to invest in HUBER+SUHNER
Five reasons to invest in HUBER+SUHNER 1. Strong position in essential markets and applications 2. High value proposition ensures strong customer loyalty 3. Growth strategy targets attractive markets 4. Value assurance guarantees focus on profitability 5. HUBER+SUHNER is shareholder-oriented 23 Sept
Slide 7: Where and how we target the markets
1. Strong position in essential markets and applications: Where and how we target the markets Business activity • HUBER+SUHNER designs and creates connections for data and power transmission Target markets • Industry, communication, transportation markets Solutions offering • Connectors, cables, ant
Slide 8: The business opportunity is vast and diversified
1. Strong position in essential markets and applications: The business opportunity is vast and diversified Near-space satellite Smart grids for must-be Worldwide data volume Approximately 130 new Only a minority programs require several renewable power generation doubles every devices connect to the
Slide 9: Our business model focuses on customer value
2. High value proposition ensures strong customer loyalty Our business model focuses on customer value CUSTOMER HUBER+SUHNER CUSTOMER NEEDS VALUE PROPOSITION VALUE Reliability Resilience and longevity Best total cost of ownership Experience and application Applicability High-performance knowledge In
Slide 10: Balanced portfolio with high customer loyalty
2. High value proposition ensures strong customer loyalty Balanced portfolio with high customer loyalty Sales by segment Sales by region Broad base of several thousand buying customers. 22% 29% 32% Approximately 35 customers generate 50 % of sales. Sales Sales 2021 2021 53% 25% High customer loyalty
Slide 11: Strategic focus aligned with megatrends
3. Growth strategy targets attractive markets: Strategic focus aligned with megatrends Megatrends Strategic growth initiatives Aerospace & Defense Security Connectivity Super-safe society Open innovation Mobility Big data Big data Autonomous driving Industry 4.0 Industry 4.0 Third places Data Center
Slide 12: Strong R&D / Engineering establishes technology and innovation leadership
4. Value assurance guarantees focus on profitability Strong R&D / Engineering establishes technology and innovation leadership Technology roadmaps • Ensuring and expanding the technology leadership role Innovation project selection • Customer-focused and specific • Allocation of competencies and res
Slide 13: Mastering the manufacturing ensures operational excellence
4. Value assurance guarantees focus on profitability: Mastering the manufacturing ensures operational excellence Global footprint • Superordinated supply chain, local empowerment Efficient processes • High degree of digitalization • Investments in improvements and automation of ~5 % of net sales p.a
Slide 14: Direct sales secure strong position in target markets
4. Value assurance guarantees focus on profitability: Direct sales secure strong position in target markets Know what customers need • Consulting and support oriented agile account management • Culture of customer focus and “can do” mentality of staff • Engineered solutions exhibit high differentiat
Slide 15: Significant cash returns
5. HUBER+SUHNER is shareholder-oriented: Significant cash returns Dividend policy 3.00 • Increasing dividends • Profit-oriented dividend policy 2.50 CHF 1.00 • Target pay-out ratio of 40-50 % of CHF 1.00 net income 2.00 CHF 2.00 Share buyback programme CHF 1.60 1.50 • Ongoing share buyback CHF 1.40
Slide 16: Insight into the activities of the three market segments
Insight into the activities of the three market segments 23 September 2022 | Capital Market Day 2022 16
Slide 17: Industry segment
Capital Market Day 2022 23 September 2022 | Capital Market Day 2022 | Industry segment 17
Slide 18: Our solutions for the Industry market
Our solutions for the Industry market Aerospace & Defense • Space flight • Satellite communications Process Industries • Intelligence & Cybersecurity • Oil & Gas • Airborne Energy • Petrochemical / Chemical • Electronic warfare & radar • Wind • Armored vehicle • Power transmission & distribution Gen
Slide 19: Trends & drivers: 24/7 reliable solutions for critical infrastructure
Trends & drivers 24/7 reliable and available solutions for critical infrastructure Increasing Smart grids for E-Mobility is the Accelerating Geopolitics drive demand for power genera- new reality and growth in space defense budgets internet devices, tion and distri- range require- market up mobility
Slide 20: Strategic focus Industry segment
Strategic focus Industry segment Core markets Growth initiatives Focused market Opportunities with verticals growth potential High Power Charging •… Test & Measurement Aerospace & Defense Medical Device •… Industry Process Industries •… CEM Components •… Mobile Network Data Center •… Communication F
Slide 21: Technology trends and strong value propositions
Technology trends and strong value propositions for the different applications Higher density Higher data rates Signal integrity Higher electrical Weight saving lower signal loss power HUBER+SUHNER Compact multiport Modulating RF signals Compact, highly DC charging with Robust, lighter cable connect
Slide 22: Serving a wide range of customers with different channels to market
Serving a wide range of customers with different channel to markets Focus on top US and Dual approach to cover Test Distribution partners for a Focused account base in European Aerospace & & Measurement OEMs and vast number of industrial High Power Charging Defense primes broad end-users accounts 23
Slide 23: Key take-aways
Key take-aways Early mover in attractive Working with the Managed complexity niche markets market leaders • Presence in high-end verticals • Local engineering, fully • Bundling of all technologies offers • Early in the life-cycle, offering understanding the customer cross-selling advantages growth p
Slide 24: Communication segment
Capital Market Day 2022 23 September 2022 | Capital Market Day 2022 | Communication segment 24
Slide 25: Our solutions for the Communication market
Our solutions for the Communication market Communication Equipment Manufacturers Data Center • Components for antennas and radios • Telecoms • Switches and routers • Broadcasting • Optical transport equipment • Colocation • Enterprise Mobile Network • Edge data center • In-building coverage • Macro
Slide 26: Data bandwidth needs drive communication infrastructure
Trends & drivers Data bandwidth needs drive communication infrastructure Data traffic 5G will push Fiber is key pre- Convergence Demand for Flexibilisation growth continues, wireless requisite for data of IT and infrastructure, of networks down driven by video investments for connectivity and networ
Slide 27: Strategic focus Communication segment
Strategic focus Communication segment Core markets Growth initiatives Focused market Opportunities with verticals growth potential High Power Charging •… Test & Measurement Aerospace & Defense Medical Device •… Industry Process Industries •… CEM Components •… Mobile Network Data Center •… Communicat
Slide 28: Key requirements for the physical layer
Key requirements for the physical layer Future ready High performance Reliability Density Scalable 23 September 2022 | Capital Market Day 2022 | Jürgen Walter, COO Communication segment 28
Slide 29: Strong value propositions for the different applications
Strong value propositions for the different applications Antenna Harsh environment connectivity – Hardware WDM Coupling connectors and cable systems interconnection Module Compact and customisable Rugged and integrated Fast, scalable and modular Reliable, miniaturised High-performance optical macro
Slide 30: Serving different customer groups with their different business models
Serving different customer groups with their different business models Communication Telecoms Service Equipment Neutral host Enterprise Provider Manufacturer (CEM) 23 September 2022 | Capital Market Day 2022 | Jürgen Walter, COO Communication segment 30
Slide 31: Key take-aways
Key take-aways Favourable market Well positioned Strong execution environment • Megatrends are driving • Differentiated and broad solution • Global production network the demand for communication offering • Proven supply chain that is equipment and networks globally • Global access to all resilient
Slide 32: Transportation segment
Capital Market Day 2022 23 September 2022 | Capital Market Day 2022 | Transportation segment 32
Slide 33: Our solutions for the Transportation market
Our solutions for the Transportation market Rolling Stock • In-carriage wiring solutions Rail Communications • Inter-carriage wiring solutions • Train-to-ground communication • Ground communication • Communication-based train control (CBTC) ADAS • Wireless communication between vehicles Electric Veh
Slide 34: The world of mobility is changing!
Trends & drivers The world of mobility is changing! Decarbonisation: Urbanisation Electrification Ubiquitous ADAS pushed by increased fuels build-out of (BEV/FCEV) wireless train-to- regulatory investments into public adopted by all ground framework public transportation types of vehicles communicat
Slide 35: Strategic focus Transportation segment
Strategic focus Transportation segment Core markets Growth initiatives Focused market Opportunities with verticals growth potential High Power Charging •… Test & Measurement Aerospace & Defense Medical Device •… Industry Process Industries •… CEM Components •… Mobile Network Data Center •… Communica
Slide 36: Global supplier to all leading OEMs, Operators and System Integrators
Customers Global supplier to all leading OEMs, Operators and System Integrators Rolling Stock & Rail Communications System Integrators Operators OEMs 23 September 2022 | Capital Market Day 2022 | Drew Nixon, COO Transportation segment 36
Slide 37: Global supplier to all leading Automotive manufacturers
Customers Global supplier to all leading Automotive manufacturers ADAS EV Board-to-board High Voltage Cable High Voltage Cable High Voltage Charging Distance radar antenna Distance radar antenna High Voltage Cables connector System System Systems 23 September 2022 | Capital Market Day 2022 | Drew Ni
Slide 38: Key take-aways
Key take-aways Favourable market Well positioned Strong execution environment • Megatrends are driving • Best in class high-voltage solutions to • Global production network the demand for communication meet highest temperature, service life, • Proven supply chain that is resilient equipment and netw
Slide 39: Financial insights
Financial insights Ivo Wechsler, CFO 23 September 2022 | Capital Market Day 2022 39
Slide 40: Lifting the financial profile over the last few years
Lifting the financial profile over the last few years in MCHF Net sales in % EBIT margin 1000 15 750 10 500 5 250 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 in MCHF Net income in MCHF Net cash from operating activities 100 150 75 100 50 50
Slide 41: High FY 21 return on invested capital (ROIC)
High FY 21 return on invested capital (ROIC) P+L 2021 Balance Sheet (31.12.2021) MCHF MCHF 120 700 100 600 -15 500 -188 80 400 60 104 300 588 89 40 200 400 20 100 0 0 EBIT - effective NOPAT “operating “operating Invested Income Tax rate Assets” * Liabilities” ** Capital (14.7%) 89 ø384*** * total as
Slide 42: Customer markets ensure growth and operating leverage
Customer markets ensure growth and operating leverage Sales by segment Sales by customer market Market growth Growth drivers • Test & Measurement • Medical Device Increasing demand for power Industry Industrials • Energy • Process 21 % and data connectivity (IoT, • High Power Charging Industries Ind
Slide 43: Guidance 2022 and mid-term targets
Guidance 2022 and mid-term targets 2022* Mid-term targets Net sales 6–8% > CHF 1 billion EBIT margin 10–12 % 9–12 % * The prerequisite for achieving the targets for 2022 is that the current challenges such as rising inflation rates, geopolitical tensions, availability of raw materials, reliable ener
Slide 44: Connecting – today and beyond
Connecting – today and beyond
Slide 45: 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