Cicor Technologies · SIX:CICN
Cicor Technologies — Investor Day (December 2023)
58 slides from Cicor Technologies's investor day presentation, Dec 4, 2023
Slide 1: Capital Markets Event 2023
Capital Markets Event 2023 Cicor Technologies Ltd. Zurich – December 4, 2023
Slide 2: Disclaimer
December 4, 2023 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
Slide 3: On our way
On our way 04:30 PM Opening and Strategy Update - Alexander Hagemann 05:00 PM Value creation through M&A 05:00 PM Cicor’s M&A Strategy, Execution & Results - Peter Neumann 05:30 PM Doing more with less 05:30 PM Driving returns through operational excellence - Marco Kechele 05:50 PM Strategic collabo
Slide 4: On our way: Opening and Strategy Update
On our way Opening and Strategy Update Alexander Hagemann (CEO)
Slide 5: The Cicor Group
Alexander Hagemann The Cicor Group 5
Slide 6: The Cicor Group - Facts and figures
The Cicor Group - Facts and figures High-tech Electronics CDMO* Sales growth YTD Q3/2023 EBITDA margin 1HY23 25% to CHF 294.5M 10.7% (+120bp) Organic growth of 10.2% Sales 2023E CHF 380-410M Sales to strategic markets Market position Europe (EMS) 84% No 9, goal top 1-3 Industrial, Medical, In each o
Slide 7: "Cicor inside" in three core markets
Electronification of everything “Cicor inside” in three core markets Industrial Medical Aerospace & Other Defense 41% 16% 16% 27% H1 2023 share of net sales 7
Slide 8: Industrial – sense, control, automate
Cicor core markets Industrial – sense, control, automate Application examples • Semiconductor equipment • Test, measurement, control systems • Robotics • Sensors • Smart building 8
Slide 9: Medical – Improving global healthcare
Cicor core markets Medical – Improving global healthcare Application examples • Hearing aids • Surgery robots • Pacemakers and defibrillators • Medical imaging systems • Smart drug delivery devices • Neurostimulators 9
Slide 10: Aerospace & Defence – The space is Cicor's limit
Cicor core markets Aerospace & Defence – The space is Cicor’s limit Application examples • Communication modules for satellites • T/R modules for radar systems • Camera systems for Mars robot • High-end aerospace electronics • Passenger aircraft entertainment systems 10
Slide 11: One stop shop – from design to finished product
Contract design and manufacturing organisation - CDMO One stop shop – from design to finished product Maintenance Modification Repair Services Product Development Refurbishment Hard- and Software Engineering Obsolescence Management Mechanical Design Test Development Redesign Electronic Manufacturing
Slide 12: Close to customers and competitive - footprint for CHF 500m sales
Global footprint Close to customers and competitive - footprint for CHF 500m sales 12
Slide 13: Strategy Update
Alexander Hagemann Strategy Update 13
Slide 14: A good market to be in
Development of EMS market in Europe A good market to be in European EMS market with inherent structural growth Source: Weiss Engineering (in4ma) September 8, 2023 14
Slide 15: Megatrends drive momentum – 8-10% growth of addressed market
Cicor’s addressed market Megatrends drive momentum – 8-10% growth of addressed market Electronics market growth driven by automation, connectivity and electronification* ~ 5% CAGR + OEM focus on core competencies and outsource development and production** ~ 2% CAGR + Near- / reshoring trend – Client
Slide 16: Cicor operates in the sweet-spot of scale at attractive margins
Positioned in the most attractive segment of electronics manufacturing Cicor operates in the sweet-spot of scale at attractive margins EBITDA Margin Tier 4: Small local players ≥14% Tier 3: High Mix / Low Volume A.I.M. 12% 10% Tier 2: Low Mix / High Vol. A.I.M. 8% 6% Tier 1: Low Mix / High Volume C.
Slide 17: Cicor is well positioned to benefit from megatrends
EMS market trends Cicor is well positioned to benefit from megatrends Capacity to ‚own the trend‘ Megatrends accelerate EMS market Cicor manufacturing infrastructure supports organic growth growth to CAGR of 6.9% to CHF 500 million without further factory expansion On the safe side of the economic c
Slide 18: A strong platform for organic growth and industry consolidation
Cicor strategy 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 portfol
Slide 19: Making Cicor a European leader one country at a time
Multi-regional strategy Making Cicor a European leader one country at a time • UK market leader with focus on Aerospace & Defense after acquisition of Axis Electronics (11/2021) and STS Defence (signing in 11/2023 with closing expected within coming months) • Strong position in Germany after acquisi
Slide 20: Clients choose Cicor as one-stop shop
Competitive landscape Clients choose Cicor as one-stop shop Industries Solutions Engineering Precision Hybrid Printed Medical Industrial A&D Automotive EMS Metalwork PCB Services Plastics Circuits Electronics ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● 20
Slide 21: Business Update & Outlook
Alexander Hagemann Business Update & Outlook 21
Slide 22: 25% year-to-date sales growth and positive outlook
Business Update Q3/2023 25% year-to-date sales growth and positive outlook YTD (9 months) figures: • Sales of CHF 294.5 million (09/2022: CHF 235.6 million) • Organic growth of 10.2% • Order intake of CHF 329.4 million (09/2023: CHF 283.4million) • Book-to-bill ratio of 1.12 22
Slide 23: Robust sales and earnings growth
Guidance 2023 Robust sales and earnings growth • 5:1 ratio of new customers won vs. customers lost • YTD book-to-bill ratio of 1.12 – orderbook covering almost one year • Full year 2023 guidance: • Net sales of CHF 380 - 410 million • Operating result (EBITDA) of CHF 40 – 45 million 23
Slide 24: Financial mid-term objectives – 3-4 year horizon
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 h
Slide 25: 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 26: Value creation through M&A
Value creation through M&A Cicor’s M&A Strategy, Execution & Results Peter Neumann (CFO)
Slide 27: Timeline of executed transactions
Introduction - Timeline of executed transactions Since launch of its active M&A strategy, Cicor has successfully signed one acquisition within its core business every 6 months Jan-2023 Further strengthening of Dec-2021 presence in Germany EoY-2023 / beg 2024 Strengthening presence through acquisitio
Slide 28: Rationale for M&A – the external market view
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 Europe • EMEAs EMS market has a si
Slide 29: Cicor M&A strategy
Cicor M&A strategy Clear strategy to establish Cicor as leading EMS solutions provider for A&D, Medical and High-End Industrial Selected qualitative acquisition criteria Driving industry consolidation in • EMS customer verticals: corresponding to Cicor’s Europe with a focus on well- target markets,
Slide 30: Strong Financial foundation – Announced Increased Financing
Cicor M&A Execution Strong Financial foundation – Announced Increased Financing MCHF Previously New Change • Refinancing provides flexibility for future operational and acquisition requirements at attractive conditions Revolving Credit Facility 80 120 40 Acquisition Line - Existing* 75 75 0 • Unchan
Slide 31: Cicor follows a disciplined, streamlined and proven M&A process
M&A and PMI process Cicor follows a disciplined, streamlined and proven M&A process Deal flow management Deal execution Post-Merger Integration (PMI) • Extremely selective in initial target • Financial, Tax & Legal due • Execution of PMI plan within 3-6 selection. diligence with external experts. mo
Slide 32: Cicor often acquirer of choice for sellers
Why sellers choose Cicor Cicor often acquirer of choice for sellers Long-term industrial vision Alignment of Trust interests Swissness M&A track record Collaboration with Industry expertise local management Cicor’s M&A edge Cicor has build up a reputation as a long-term oriented, trust-worthy strate
Slide 33: Deep-dive – PMI process
Deep-dive – PMI process Cicor employs a comprehensive PMI approach, ensuring a solid foundation to leverage synergies across all business activities Cicor PMI* Pillars Main areas of synergy • Activities core to our business and close to our customers Engineering • Where most potential synergies Sale
Slide 34: Key areas of M&A Synergies
Synergies – key areas Key areas of M&A Synergies Revenue Cost savings Cash benefits • Customers can give more • Synergies as Cicor leverages • Improved payment terms with business to Cicor group. shared resources. key suppliers due to Group • Geographically expanded • Purchasing savings through scal
Slide 35: Cicor's acquisitions deliver excellent results
M&A results Cicor’s acquisitions deliver excellent results Phoenix Mecano Thin film Axis Electronics SMT Elektronik STS Defence Digital Elektronik business of AFT Date of completion Nov 2021 May 2022 Jan 2023 March 2023 expected in 2023 Core geography UK Germany Germany/Tunesia Germany UK Core indus
Slide 36: 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 for an inorganic growth strategy Cicor’s recipe Proven track-record & expertise for M&A Focus on known core business of delivering succesful results via M
Slide 37: Doing more with less
Doing more with less Driving returns through operational excellence Marco Kechele (EVP Operations)
Slide 38: Wide range of Manufacturing Services
Cicor Group Wide range of Manufacturing Services NPI Mold Design Test Engineering Product Design Customer Product Design Global Processes Process Engineering Global Sourcing New Product Introduction (NPI) Adv. Substrates Plastics Electronics Box building 38
Slide 39: Operations: How to accelerate growth
Operations How to accelerate growth More with the same Production Costs / Net Sales Increased profitability Digitalization Technology through better utilization Net Sales Operational Footprint Excellence 39
Slide 40: Digitalization
How to accelerate growth Digitalization ERP Process Automation with AI • Implementation for automated invoice approval (approx. 100,0000 p.a.) complete • Expansion to include purchase orders and goods receipts scheduled for 2024 Quotation Process Automation with AI • Implementation for semi-auto
Slide 41: Technology
How to accelerate growth Technology • Continuous investment in leading-edge technologies • Leading position: thin-film technology (structures <10µm) • PCB manufacturing: lines/spaces down to 25µm • Aerosol Jet Printing: 2D/3D printed electronics < 10µm • Engineering Services • From co-design to the
Slide 42: Operational Excellence @Cicor
How to accelerate growth Operational Excellence @Cicor Specialization • Switzerland and Germany with a strong customer focus as the backbone of the company • Arad (Europe) and Vietnam (Asia) as volume production sites for electronics • Batam (Indonesia) with Singapore as a competence center for prec
Slide 43: Investments and acquisitions have further strengthened footprint
How to accelerate growth Investments and acquisitions have further strengthened footprint Vietnam: Doubling of manufacturing floorspace Tunisia: Attractive location for PCBA, box building, cable assembly Germany: Competence center for cable assembly 43
Slide 44: Operating Performance
How to accelerate growth Operating Performance Sales / employee (FTE) 170% 160.3% 160% 150% 142.3% 140% 130% 120.4% 119.1% 120% 114.2% 110% 109.6% 100% 106.6% 100.0% COVID-19 impact 90% 80% including external / temporary workforce (FTE) 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023E* * 2023E = half
Slide 45: Strategic collaboration: Cicor and Clayens
Strategic collaboration Cicor and Clayens - a perfect match Eric Pisani (CEO of the Clayens Group) Alexander Hagemann (CEO of the Cicor Group)
Slide 46: Our Partnership Vision
Our Partnership Vision 46 Alexander Hagemann Eric Pisani CEO Cicor Group CEO Clayens Group “This partnership does not only offer significantly larger “Our partnership goes beyond a simple collaboration; scale and footprint to our customers, but it’s also about we’re creating a one stop solution part
Slide 47: Key Facts at a Glance
Key Facts at a Glance 47 2 500 5 000 Employees Employees 15 31 Sites Sites 11 9 Cleanrooms Cleanrooms • Electronic Manufacturing Services in Europe and Asia • Plastics Manufacturing Services in EMEA and North America • Electronic Engineering in Europe and Asia • Development from concept to market •
Slide 48: A Perfect Match
A Perfect Match 48 One-Stop CDMO, with unmatched know-how in both plastics and electronics Customized and integrated technical solutions, from concept to market Global complementary manufacturing capabilities 7 500 people, 46 plants and 20 cleanrooms Accelerated innovation Combining complementary sk
Slide 49: Unmatched know-how in both plastics and electronics
Unmatched know-how in both plastics and electronics 49 Cicor CLAYENS Product Development / Electronic Product Development / Mechanic Hybrid Circuits Thermoplastic / Composite Printed Circuit Boards Plastic machining Printed Electronics Thermoset Test Engineering Metalloplastics Electronic Manufactur
Slide 50: Global complementary manufacturing capabilities
Global complementary manufacturing capabilities 50 7 500 People 46 Plants 20 Cleanrooms Europe 27 plants, 13 cleanrooms • Germany 1 + 5 • Romania 1 • France 12 • Slovakia 1 • Hungary 1 • Switzerland 3 • Poland 2 • United Kingdom 1 North America 15 plants, 3 cleanrooms • United States 11 • Mexico 4 A
Slide 51: One-Stop CDMO
One-Stop CDMO 51 Customized and Integrated Solutions, from concept to market launch
Slide 52: One face to the customer
One face to the customer 52 Electronic complexity One face to the customer Project lead contact Cicor or Clayens
Slide 53: Partnership Mechanics
Partnership Mechanics 53 Basic complexity High complexity Independent Expertise, Unified Goal Teamwork Cross-Functional Teamwork Each company works on its specialties—plastics for Each company contributes a dedicated team of experts Clayens and electronics for Cicor—but always with a in plastics and
Slide 54: Quality Assurance & Regulatory Support
Quality Assurance & Regulatory Support 54 ISO 13485 Medical Products ISO 15378 Primary Packaging Materials for Medicinal Products IATF 16949 Automotive Industry EN 9100 Aerospace Industry JOSCAR Joint Supply Chain, Accreditation Register OHSAS 18001 Occupational Health and Safety Management System A
Slide 55: Target Markets
Target Markets 55 Full-cycle electronic and plastic solutions for a safe, connected world Cicor and Clayens are both very well positioned in the medical technology and industrial markets. Thanks to the overlapping services, synergies can now be used, from which the customers benefit.
Slide 56: Case Studies
Case Studies 56 Remote control Smart drug delivery device Workstream Cicor Main customer contact System engineering Electronic development PCBA manufacturing Box build Workstream Clayens Coordination of external industrial designer System integration Mechanical design Manufacturing of the plastic pa
Slide 57: Conclusion
Conclusion Cicor Capital Markets Event 2023 Alexander Hagemann (CEO)
Slide 58: Thank you for your participation
Thank you for your participation cicor.com Cicor Group @cicor.group