Scanfil Group 2017 Global contract manufacturer and systems supplier CEO Petteri Jokitalo 30 October 2017 scanfil.com
Scanfil in Brief Q3 / Jan-Sep 2017 Financials
Scanfil in Nutshell Customers > 80 customers Biggest customer represents 10 % of sales 10 biggest customers 55 % of sales Urban applications Energy & Automation Other industries Networks & Communications MedTech,& Life Science Sales 2016 MEUR 508 35 % 16 % 16 % 19 % 14 % Energy & Automation MedTech, Life Science, Environmental Measurement Networks & Communication Urban Application Other Industries Factories Finland 1 Sweden 2 Estonia 1 Poland 2 Germany 1 China 2 USA 1 People ~3300 employees worldwide 84 73 298 321 968 China Poland Estonia Hungary Finland 176 Sweden 548 826 USA Germany Scanfil
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. Scanfil
Vision We are a trusted partner We differentiate with our best in class performance Scanfil
Key Milestones of Our Growth Jorma J. Takanen founded Scanfil Oy Rapid internationalisation to low cost countries: - Hungary 2001 - China Suzhou 2002 - Estonia 2002 - China Hangzhou 2003 Professional electronics represented about 50 % of the sales for the first time Acquisition of Schaltex Systems GmbH, (sales of MEUR 21) 1976 1991 2001 2002 2010 2012 2014 2015 10 years rapid growth period - Sales 1991 MEUR 5 - Sales 2001 MEUR 220 - 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
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 Internet of Things 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 Other Industrial Electronics Industrial Internet Scanfil
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 8
Our Global Footprint Factories close to customer s R&D Factories close to customer s markets
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 Scanfil 10
Operational Excellence 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 Scanfil
Global Supply Chain Global organization with Sourcing Units in Asia, Europe and USA Global Category Teams (GCT) Mechanics Connectivity and Modules Electronics Global Transportation Common processes and tools Main KPI s Supplier OTD, Quality, Cost reduction, ITO, Supply base Scanfil
System Integration
Electronics Assembly
PCBA
SMT lines
Urban Applications Elevator and escalator control systems Self-service equipment Game machines Scanfil
Energy And Automation Power production and electricity transmission systems Systems related to energy efficiency Systems related to renewable energy Scanfil
Medtech, Life Science And Environmental Measurements Equipment related to health-care technology and climate and environmental monitoring Scanfil
Networks & Communications Broadband, communication and mobile network equipment and systems Scanfil
Customer Voice Scanfil is an key partner to Tomra, and been an important part of a Tomra operations since 2005. They are providing capacity and flexibility enabling Tomra to handle the big variations in a demands. They are situated close to our main market in Germany enabling acceptable cost level and short delivery times. Scanfil
Scanfil in Brief Q1-Q3 / 2017 Financials
Q3 / 2017 Highlights Strong operating margin benefitted from increased sales and lighter cost structure Investments program continued; Suzhou and Malmö new SMT lines, Sieradz building expansion, move to new production premises with double capacity in Atlanta Scanfil
Q3/2017 Q3/2017 Q3/2016 Change% Turnover, EUR million 130,8 121.7 7 % Operating Profit, EUR million 8.5 7.6 12 % Operating Profit, Adjusted, EUR million 8.5 7.7 10 % Operating Profit, % 6.5 6.2 Operating Profit, %, Adjusted 6.5 6.3 Net Cash Flow from Operations, EUR million 7.3 3.1 135 % Earnings per Share, EUR 0.08 0.10-20 %
Q1-Q3 / 2017 Q1-Q3/2017 Q1-Q3/2016 Change % 1-12.2016 Turnover, EUR million 385.5 385.7 0 % 508.0 Operating Profit, EUR million 21.7 4.4 393 % 7.2 Operating Profit, Adjusted, EUR million 21.7 17.6 23 % 22.3 Operating Profit, % 5.6 1.1 1.4 Operating Profit, %, Adjusted 5.6 4.6 4.4 Net Profit, EUR million 15.3-1.2 1380 % 0.1 Net Profit, Adjusted, EUR million 15.3 12.5 23 % 15.7 Earnings per Share, EUR 0.24-0.02 1300 % 0.00 Return on Equity, % 18.3-1.6 0.1 Equity Ratio, % 37.9 37.2 40.7 Net Gearing, % 44.9 49.3 36.9 Net Cash Flow from Operations, EUR million 7.3 3.1 135 % 16.5 Employees (Average) 3 212 3 534-9 % 3 483
Q1-Q3 Turnover and OP development 26
Q3/2017 Turnover By Customer Segments 16,8 % 15,8 % Energy & Automation MecTech, Life Science, Environmental Measurement 16,4 % Networks Urban Applications 30,1 % Other Industries 20,9 %
Turnover and Operating Profit Q1 Q3/ 2012-2017 Q1-Q3 Turnover, MEUR Q1-Q3 Operating profit and operating profit %, adjusted 550 500 25 10 450 400 20 8 350 300 15 6 250 200 10 4 150 100 5 2 50 0 2012 2013 2014 2015 2016 2017 0 2012 1 2013 2 2014 3 2015 4 2016 5 2017 6 MEUR 7,4 9,3 12,9 14,4 17,6 21,7 0 140,1 148,1 164,9 234,5 385,7 385,5 % 5,3% 6,5% 7,8% 6,1% 4,6% 5,6%
Turnover and Operating Profit 2012-2016 Turnover Operating profit and operating profit % Operating profit and operating profit %, adjusted 550 20 25 10 500 450 400 15 20 8 350 15 6 300 10 250 10 4 200 150 100 5 5 2 50 0 2012 2013 2014 2015 2016 181 189 215 377 508 0 2012 1 2013 2 2014 3 2015 4 2016 5 0 2012 1 2013 2 2014 3 2015 4 2016 5 MEUR 8,1 11,8 16,2 14,4 7,2 MEUR 7,6 12,2 16,4 20,0 22,3 % 4,5% 6,3% 7,6% 3,7% 1,4% % 4,2% 6,5% 7,6% 5,3% 4,4% 0
ROE, EPS and DPS 2012-2016 ROE Earnings per share Dividend per share 16,0 % 14,0 % 12,0 % 10,0 % 10,6 % 14,0 % 13,8 % 13,6 % 0,30 0,25 0,20 0,21 0,24 0,25 EUR 0,10 0,07 0,08 0,09 8,0 % 6,0 % 4,0 % 7,9 % 8,6 % 0,15 0,10 0,10 0,14 0,15 0,05 0,04 0,05 2,0 % 0,05 0,0 % 0,1 % 0,00 2012 2013 2014 2015 2016 0,00 2012 2013 2014 2015 2016 0,00 2012 2013 2014 2015 2016 ROE ROE, adjusted EPS EPS, adjusted 30
Market Guidance 2017 Scanfil specifies its estimate of its turnover and operating profit in 2017, estimating that the turnover will be EUR 500 530 million and the operating profit will amount to EUR 28 31 million
Global contract manufacturer and systems supplier