Scanfil Group. Global contract manufacturer and systems supplier. CEO Petteri Jokitalo May 22, Scanfil

Transcription

1 Scanfil Group Global contract manufacturer and systems supplier CEO Petteri Jokitalo May 22, 2018

2 Petteri Jokitalo CEO Since 2013 Over 25 years of industry experience, including: Director of Sales & Marketing in Scanfil Managing Director in Meka Pro Director positions in Sales and Business Development in Scanfil Various senior management positions in Finland, China and Switzerland in Nokia Networks Several management positions in YIT

3 Scanfil in Nutshell Customers > 80 customers Biggest customer represents 13 % of the turnover, ten biggest approx 61 % Urban applications Energy & Automation Other industries Networks & Communications MedTech,& Life Science Sales 2017 MEUR % 16 % 16 % 20 % 16 % Energy & Automation MedTech, Life Science, Environmental Measurement Networks & Communication Urban Application Other Industries Personnel % 2% China 10% Poland 30% 10% Estonia Finland Sweden 17% USA 28% Germany Factories Finland 1 Sweden 2 Estonia 1 Poland 2 Germany 1 China 2 USA 1 3

4 Mission Scanfil enables customers to succeed by providing effective and innovative solutions that bring products to life and to market. We provide global manufacturing and supply chain solutions along with a comprehensive range of related services from design to aftermarket services. 4

5 Customer Needs Original Equipment Manufacturers (OEM) Product development / design Sourcing Inbound logistics Manufacturing Outbound logistics Sales and marketing Customer service Electronics Manufacturing Services (EMS) 5

6 Product Life Cycle Approach 6

7 Key Milestones of Our Growth Jorma J. Takanen founded Scanfil Oy Rapid internationalisation to low cost countries: - Hungary China Suzhou Estonia China Hangzhou 2003 Professional electronics represented about 50 % of the sales for the first time Acquisition of Schaltex Systems GmbH, (sales of MEUR 21) years rapid growth period - Sales 1991 MEUR 5 - Sales 2001 MEUR Position of a system supplier Merger with Wecan Electronics plc (Sales MEUR 46) Helsinki Stock Exchange SCF1V Professional electronics represented 75 % of the sales Acquisition of PartnerTech in July 2015 (sales of MEUR 246) Scanfil

8 Example Customer Cases Customer Scanfil s role Provider of vertical integration service in production of various complete products, for example laundry machines and photo booths Provider of vertical integration service in production of the reverse vending solutions Illustrations Customer feedback We have made good progress on costs in past years, but this will be overshadowed by the leap forward we will take in 2014 in reducing the manufacturing costs of both our photo booths and laundry units, by outsourcing to China and Hungary respectively. Not only does this open up the emerging markets for us, it enables us to increase manufacturing capacity with potential decrease in capital expenditure. Scanfil is a key partner to Tomra and an important part of Tomra operations since They are providing capacity and flexibility enabling Tomra to handle the big variations in demand. They are situated close to our main market in Germany enabling acceptable cost level and short delivery times. SCANFIL Vertical Integration YouTube 8

9 Solid Foundation for Continous Success Growing customer segments and welldiversified customer base Strong performance culture Vertically integrated business model Continuous focus on operational performance Globally optimised factory network with clear factory roles 9

10 Our Customer Segments and Megatrends Urban Applications Urbanisation in developing countries Increase in people s wealth Population ageing Energy & Automation Energy efficiency & renewable energy production Urbanisation in emerging markets Industrial automation Networks & Communications Digitalisation Increasing significance of tele-communications and wireless solutions MedTech, Life Science & Environmental Measurement Population ageing and healthcare needs in emerging markets Need to predict weather phenomena Monitoring of food, water and air quality Other Industries Industrial Internet 10

11 Opportunities to Grow by Maintaining the Focus Existing customers New customers Acquisitions Growth with customers Cross selling Outsourcing Scandinavia Central Europe We are screening the market Continuous improvement of operational performance and customer satisfaction Personnel engagement 11

12 Optimised Factory Network With Clear Factory Roles 12

13 Vertical Integration Supply network Combined services Complete product Efficient and cost effective supply chain Services covering customer s whole value chain Complex integrations Complete service offering with focus on high mix / low & medium volume production 13

14 Best-in-Class performance Continuous improvement of operations by using Six Sigma principles for quality Lean principles for customer value creation Visual factory for effective management of lean operations Global development organization More than 100 Lean Six Sigma professionals deployed worldwide Standardized global processes and shared best practices Common KPI:s ( Key Process Indicators) Annual targets by function For example quality, on time delivery, lead time, productivity 14

15 Strong Performance Culture Lean cost structure, low fixed costs Focus on customers and performance Quick decisions and strong execution Big factories through consolidation 14,0% MEUR % 529,9 500,0 508,0 12,0% 400,0 9,7% 10,0% 300,0 8,5% 321,6 8,3% 7,9% 7,6% 377,3 8,0% 6,3% 200,0 241,4 4,7% 224,6 218,9 197,3 219,3 5,0% 210,8 4,3% 4,5% 180,9 188,5 214,5 5,3% 4,4% 5,9% 6,0% 4,0% 100,0 2,0% 0, ,0% Turnover Operating profit % 15

16 System Integration 16

17 SMT lines 17

18 PCBA 18

19 Urban Applications Elevator and escalator control systems Self-service equipment Game machines 19

20 Energy And Automation Power production and electricity transmission systems Systems related to energy efficiency Systems related to renewable energy 20

21 Medtech, Life Science And Environmental Measurements Equipment related to health-care technology and climate and environmental monitoring 21

22 Networks & Communications Broadband, communication and mobile network equipment and systems 22

23 Global contract manufacturer and systems supplier 23

24 Turnover and Operating Profit Turnover Operating profit and operating margin, adjusted MEUR 550 MEUR % Turnover 180,9 188,5 214,5 377, , MEUR 8,1 11,8 16,2 20,0 22,3 31,3 % 4,3% 6,3% 7,6% 5,3% 4,4% 5,9%

25 ROE, EPS and DPS ROE Earnings per share Dividend per share 25,0 % 20,0 % 22,2 % 0,40 EUR 0,40 0,10 EUR 0,09 0,11 15,0 % 10,0 % 5,0 % 10,6 % 7,9 % 14,0 % 13,8 % 8,6 % 13,6 % 0,30 0,20 0,10 0,10 0,14 0,21 0,24 0,15 0,25 0,05 0,04 0,05 0,07 0,08 0,11 0,0 % 0,1 % , , , ROE ROE, adjusted EPS EPS, adjusted 25

26 Q1/2018 Key Figures Q1/2018 Q1/2017 Change% 2017 Turnover, EUR million % Operating Profit, EUR million % 31.3 Operating Profit, % Net Profit, EUR million % 25.8 Earnings per Share, EUR % 0.40 Return on Equity, % Equity Ratio, % Net Gearing, % Net Cash Flow from Operations, EUR million % 21.3 Employees (Average) %

27 Future Outlook and Long-term Target Future Outlook Scanfil estimates, that its turnover for 2018 will be EUR million and the operating profit will amount to EUR million. Long-term Target In 2020, Scanfil aims to reach sales of EUR 600 million and 7% operating profit level thru organic growth. 27

28 Why to Invest in Scanfil? A Diverse, long-term customer base; many of them are market leaders in their field Driven by global megatrends Growth strategy based on strong market share in Scandinavia and Central Europe and global factory network Effective Capital Deployment: Return on Equity 22.2% and Return on Investment 19.4% (2017), Acquisitions Growing dividend: at 22% CAGR. Strong attitude and track record: continuous improvement, fast decision making, robust execution and profitable business 28

29 Major Shareholders 29

30 Contact information and Analysts Petteri Jokitalo, CEO, , Minna Oksanen, Communications Director, , Inderes Oy, Antti Viljakainen , antti.viljakainen(at)inderes.fi Evli Pankki Oyj, Olli Pöyhönen , olli.poyhonen(at)evli.com OP Yrityspankki Oyj, Hannu Rauhala , hannu.rauhala(at)op.fi Nordea Oyj, Pasi Väisänen , pasi.vaisanen(at)nordea.com 30

31 Disclaimer Not to be published or distributed, directly or indirectly, in any country where its distribution or publication is unlawful. Forward looking statements: certain statements in this presentation may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Scanfil Oyj to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this presentation, such statements use such words as "may," "will," "expect," "anticipate," "project," "believe," "plan" and other similar terminology. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Scanfil Oyj to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking information contained in this presentation is current only as of the date of this presentation. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised, except as provided by the law or obligatory regulations, whether as a result of new information, changing circumstances, future events or otherwise. 31

32 Global contract manufacturer and systems supplier 32