Successful turnaround and transformation

Transcription

1 - Cicor Technologies Ltd. Successful turnaround and transformation Alexander Hagemann (CEO) & Patric Schoch (CFO) 1

2 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 in any jurisdiction in which such transmission or distribution is unlawful. This document may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forwardlooking statements. 2

3 Speakers Cicor Group Alexander Hagemann, CEO Cicor Group Alexander Hagemann joined the Cicor Group as Chief Executive Officer in September he was with Schaffner Group as Chief Executive Officer. Prior to that he held a number of management positions with the Schott Group, including Executive Vice President, Optics for Devices; preceded by various management roles in the area of production and logistics at BMW. He is Chairman of WICOR Holding AG and Member of the Executive Board of the Swiss-Asian Chamber of Commerce in Zurich, Switzerland. Patric Schoch, CFO Cicor Group Mr. Patric Schoch joined the Cicor Group as Interim Chief Financial Officer on July 2012 and was nominated as the Chief Financial Officer in April He was also Acting Chief Executive Officer of the Cicor Group from December 2012 to June 1st, Prior to working for Cicor, Patric Schoch was working in international Finance positions at OC Oerlikon, Clariant and ABB. 3

4 Cicor Technologies Ltd. Introduction 4

5 The Cicor Group Your Technology Partner At a glance Engineering and manufacturing partner for advanced electronics Developing synergies between our businesses: AMS Division: Leadership in substrate technologies and microelectronics ES Division: Electronic solutions, from engineering to production and after-sales Creating value through market focus, differentiation, execution Expect above CHF 200 million 2017 sales 1,900 employees worldwide 5

6 Substrates and solutions for advanced electronics Application examples Hearing aids Neuro-stimulators Cardiac imaging Breast pumps Digital printing Human-machine interfaces Machine control Sensors and sensor control Back training device Intraocular pressure sensor implant Vacuum gauge controller Portable mini lab 6

7 A broad customer base of industry leaders Selected customers in focus markets 7

8 Cicor's global footprint A network of competitive high-tech sites Germany Radeberg Ulm Romania Arad China Suzhou Vietnam Thuan An Town Sales offices Operating sites Engineering Printed Circuit Boards (PCB) Microelectronics PCB assembly Box building Plastic injection molding Tooling Switzerland Boudry Bronschhofen Wangs Indonesia Batam Singapore Singapore 8

9 Transformation of Cicor (1/4) Restructuring into a more agile organization Eliminated one management layer for increased customer focus and decision making speed Reduced group management positions from 4 to 2 Eliminated non-value adding positions Fully committed and engaged anchor shareholder Structure of Cicor operating units before and after restructuring 9

10 Transformation of Cicor (2/4) Footprint optimization From 7 to 3 sites in Switzerland: Consolidation of PCB production to Boudry NE New HQ and production site in Bronschhofen SG improving processes and productivity Integration of 2 plants and 2 offices into new factory in Bronschhofen SG Manufacturing growth focused on better cost countries (Romania, Indonesia) 10

11 Transformation of Cicor (3/4) Cicor in Romania a success story since 2001 Room to grow production to almost double from today Construction started in August 2017, move of operations in H2/2018 Investing a high single-digit million Euro amount Cost savings from 2019 onwards 11

12 Transformation of Cicor (4/4) First results in operational excellence Jump in productivity: 16% improvement of sales per employee in H1/2017 Higher manufacturing yields by increased process stability Better machine productivity by improved overall equipment efficiency (OEE) Lean conversion as ultimate goal to optimize productivity, space, NWC Printed circuit board production (Boudry, Switzerland) Electronics assembly (Arad, Romania) 12

13 Cicor Technologies Ltd. Comments on H1/

14 Cicor is on track Progress in many areas in H1/2017 High sales growth of 17.3% year-on-year beating our expectations Continued momentum from new orders with a book-to-bill ratio of 1.10 Broad-based growth: more than two dozen major new orders (> CHF 1m) reported from all served markets and operating units Successful and dramatic turnaround of AMS division New syndicated loan secured 14

15 AMS Division Turnaround accomplished Highest operating margin (EBITDA) since 2008, 13 percentage points improved over PY All sites improved and contributed to the turnaround Growing again with medical, industrial and aerospace applications 15

16 ES Division Continued growth Record sales and operating margin (EBITDA) Focus on operational excellence shows first results Good capacity utilization across largest factories Manage component shortages and capacity constraints 16

17 Successful turnaround of AMS in H1/2017 All figures in CHF million at actual FX rates Total Cicor Group % 9.2% % % % % 8% 6% 4% 2% ES Division % % % % % 85 10% 8% 6% 4% 2% H1/2017 0% H1/2017 0% Sales H1 Sales H2 EBITDA% (before restructuring) AMS Division % % 9.9% % % 24 H1/ % 15% 10% 5% 0% 17

18 H2/2017 Outlook and summary 18

19 Outlook H2/2017 Continued positive momentum from high order intake in H1/2017 Increased top-line guidance to «approximately 10%» sales growth Unchanged guidance for EBIT margin: «Expect to reach the good results of 2013 and 2014» 19

20 Reasons for investing in Cicor Moving forward after turnaround and transformation Market trends in electronics support Cicor s long-term growth: Progress in medical technology (diabetes care, digital imaging, body monitoring, ) Miniaturization, e.g. in sensor technology Always on and connected devices: IoT, industry 4.0, wearables Clear profile and differentiating substrate technology platform: Focus on growth markets (medical, industrial, aerospace), small complementary portion of red sea markets (IT, mobile devices, automotive) Leadership in substrate technology supports market trends (DenciTec, thin film and microelectronics) Strong technology support close to the customer combined with a highly efficient and cost competitive manufacturing footprint Focus on execution and capital efficiency: Relentless drive for operational excellence and capital efficiency: NWC reduction and ROI improvements on fixed assets Development of Cicor s footprint to increase the share of production in better cost countries Regained FCF generation and capital efficiency allow for active market consolidation to further increase leverage 20

21 Agenda 2018 and contacts Investor Relations Agenda 2018 Annual report 2017: March 2018 Annual shareholder s meeting: 19 April 2018 Interim report 2018: August 2018 Investor Relations Contacts Cicor Management AG Alexander Hagemann (CEO) and Patric Schoch (CFO) Gebenloostrasse Bronschhofen, Switzerland Phone: info@cicor.com 21

22 Thank you for your attention. 22