results 2016 - cicor...i i 10 . measures taken will show full results in 2017 . record order intake...
TRANSCRIPT
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Press conference March 9, 2017 Results 2016
H. J. Essing, A. Hagemann, P. Schoch
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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 forward-looking statements.
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Cicor profile
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Your technology partner The Cicor group
Global engineering and manufacturing service provider with innovative technology solutions for the electronics industry
Differentiating capabilities for growth markets: Enabling miniaturization and high-end applications through specialized Printed
Circuit Boards, hybrid substrates and microelectronics
Competitive electronics manufacturing with 71% of workforce in low cost countries
One-stop source along the supply chain
10 production sites with 1,841 employees
Net sales 2016 of CHF 189 million
Founded in 1966 and since 1998 listed on the SIX Swiss Exchange: CICN
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Markets
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Serving markets with growth potential
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From design to finished products Services & solutions along the supply chain
PCB assembly
Printed circuit boards
Box building
Plastic injection molding
Hybrid circuits
Tooling
Electronic Solutions
Advanced Microelectronics and Substrates
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Serving demanding OEMs Customer references
This is just an extract from our list of references.
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A network of high-tech and competitive sites Cicor's global footprint
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Switzerland Boudry Bronschhofen Wangs
Germany Radeberg Ulm
Romania Arad
China Suzhou
Sales offices
Operating sites Engineering Printed Circuit Boards (PCB) Microelectronics PCB assembly Box building Plastic injection molding Tooling
Vietnam Thuan An Town
Singapore Singapore
Indonesia Batam
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Year of record order intake and successful turnaround
2016
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Measures taken will show full results in 2017 Record order intake and net profit turnaround
Acceleration of orders and sales towards year end, following a slow start into 2016
Highest order intake on record for Cicor Group
ES Division back on track after a difficult year of 2015 Strong demand from existing and new customers Sales at record level and improved operating margins
Progress in turning around the AMS Division – still some way to go Sales below expectations: weak demand from watch industry and inventory
adjustment at a key customer Focus on cost reduction improved margins in H2, but still an EBIT loss
Return to profit in H2 despite restructuring cost
Savings from restructuring measures will be fully accretive in 2017
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Customer focus, speed and efficiency Restructuring into a lean organization
Eliminated one management layer
Increased customer focus and decision making speed
Empowered operational managers
Reduced Group Management positions from 4 to 2
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Structure of Cicor operating units before and after restructuring
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From 7 Swiss sites to 3 Site consolidation is completed
Investments are a commitment to our Swiss homebase
Consolidation of PCB production to Boudry NE
Integration of 2 plants and 2 offices into new factory in Bronschhofen SG
308 employees (2015: 338) in 3 Swiss high-tech sites
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Continued investment in advanced processes Technology leadership
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Leading in miniaturization: Combining advanced PCB
manufacturing processes to achieve smallest possible structures
Enabling device manufacturers to design highly integrated electronics
Application example: hearing aids with integrated body monitoring functions
Sterile medical components Manufacturing of plastic parts and
assemblies under sterile conditions
Competitive cost in Batam (Indonesia)
Significant cost savings for customers as need for additional sterilization is eliminated
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Results 2016
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Orders received Net sales EBIT EBITDA Net profit +26.7%
2016
223.5
2015
176.3
+4.9%
2016
189.5
2015
180.6
2016
2.9
2015
-1.7
+54.9%
2016
11.5
2015
7.4
2016
0.3
2015
-4.1
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6.1%
4.1%
-0.9% (ROS)
1.5%
0.1%
-2.2%
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Financial achievements 2016 All figures in CHF mio at actual FX rates
Growth in net sales of 3.3% in local currencies
Book-to-bill ratio of 1.18 in 2016
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1st half-year
Net
Sal
es
+0.9% +9.1%
2015 2015
99.6 96.2
2014 2014
94.3 92.1
2013
102.9
2016
88.5
2013
96.5
2016
92.9
2nd half-year
2013
8.8 7.2
2015 2013
EB
ITD
A
5.3
10.9
2014
-0.5
7.9 -33.6% 10.4
2015 2014
6.2
2016 2016
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Half-year results 2013 - 2016 All figures in CHF mio at actual FX rates
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Sales pattern and Division key-figures
Results 2016
ES 2015 2016 %YoY
Sales 131 578 146 650 11.5%
EBITDA 8 930 11 292 26.5%
ROS% 6.8% 7.7% +0.9%pt.
AMS 2015 2016 %YoY
Sales 49 510 42 844 -13.5%
EBITDA 642 2 236 248.3%
ROS% 1.3% 5.2% +3.9%pt.
(all figures in TCHF at actual FX rates)
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Lower Capex / Depreciation ratio Capex and depreciation for PPE*
2016
8 311
2015
8 702
2014
8 788
2013
7 849
2012
6 820
2011
6 592
2010
7 059
2009
8 452
PPE Capex in TCHF PPE Depreciation in TCHF Capex / Depreciation ratio
* PPE = Property, Plant and Equipment
2016
8 362
6 495
1 867
2015
8 453
2014
10 618
2013
15 293
2012
13 168
2011
8 033
2010
5 908
2009
4 268
Average 2009 – 2016 = 1.17
Mid-term Target Corridor
Excl. Land Arad
Land Arad
0.5
0.8
1.91.9
0.8
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2016 2015
1.0
2014
1.2
2013 2012 2011
1.2
2010 2009
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Actual 2015 in % Actual
2016 in % %YoY
Net sales 180 612 100.0 189 494 100.00 4.9 Material expenses -89 461 -49.5 -99 654 -52.6 11.4
Operating expenses -79 034 -43.8 -77 228 -40.8 -2.3
Restructuring -4 718 -2.6 -1 145 -0.6 -75.7
Depreciation and amortization -9 051 -5.0 -8 540 -4.5 -5.6
EBIT -1 652 -0.9 2 927 1.5 -277.2
Financial result -2 159 -1.2 -1 839 -0.9 -14.8
EBT -3 811 -2.1 1 088 0.6 -128.5 Income taxes -245 -0.1 -830 -0.5 238.7
Net profit / (loss) -4 056 -2.2 258 0.1 -106.4
Consolidated income statement
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In TCHF
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Actual 2015
in % Actual 2016
in %
Current assets 101 404 67.0 106 527 68.1
Non-current assets 49 910 33.0 49 788 31.9
Total assets 151 314 100.0 156 315 100.0
Current liabilities 42 505 28.1 86 475 55.2
Non-current liabilities 49 109 32.4 9 647 6.3
Equity 59 700 39.5 60 193 38.5
Total liabilities and equity 151 314 100.0 156 315 100.0
Net Debt 20 534 21 537 Gearing ratio (net debt in % of equity) 34.4 35.8
Net debt / EBITDA bef. Restr. 1.7 1.7
Equity Ratio 39.5% 38.5%
Consolidated Balance Sheet
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In TCHF
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Actual 2015
Actual 2016
Profit / (Loss) before tax -3 811 1 088
Non cash items 15 595 10 194
Changes in working capital* -2 156 -1 745
Interest, tax paid / received -1 612 -2 188
Cash flow from operations 8 016 7 349 Property, plant and equipm. (net) -8 408 -8 169
Intangible assets -153 -532
Cash flow from investments -8 561 -8 701
Free Cash Flow -545 -1 352
Net cash from / (used) in fin.act. 11 738 1 076
Currency translation effects -518 36
Cash flow 10 675 -240
Cash Flow Statement
* Working capital including other current assets and other current liabilities
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In TCHF
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Outlook 2017
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Expectations for 2017 Outlook
January and February were a strong start into the new financial year!
2016 book to bill rate of 1.18 is expected to translate into mid to high single digit percent sales growth in 2017
Improved operating margins after the improvement measures executed in 2016 will be fully accretive to results
If no significant adverse change in the economic environment occurs, Cicor should return to the level of operating results achieved in 2013 and 2014
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Return to profitable growth in all businesses
Management priorities in 2017
Accelerate organic sales growth based on strong 2016 bookings
Complete and secure turnaround of AMS Division
Focus on operational excellence to unlock untapped margin potential
Expand production capacities in Romania until H2 of 2018
Identify and execute on acquisition opportunities if they are accretive for Cicor’s shareholders
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IR information
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Fr. 29.00
2016 2015 2014 2013
130%
150%
140%
120%
110%
100%
90%
80%
70%
60%
2017
Inde
xed
shar
e pr
ice
(dai
ly c
losi
ng)
+56%
+11%
-29% +3%
+19%
Cicor share price development
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Free Float
Escatec
Quaero Capital 10.10%
55.69%
4.86%
HEB Swiss 29.35%
Shareholding as per 02.02.2017
Cicor Techn N (CICN)
SPI
Share price performance 2013 – 2017 Highest paid price: 07.03.2017 CHF: 45.00 Lowest paid price: 07.07.2016 CHF: 18.40 Average daily trading volume in shares: 2 776
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2013 - 2017
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Agenda 2017 and contacts Investor Relations
Investor Relations Agenda April 19, 2017 Annual shareholder meeting August 17, 2017 Interim report 2017 Investor Relations Contacts Cicor Management AG Patric Schoch (CFO) and Alexander Hagemann (CEO) Gebenloostrasse 15 9552 Bronschhofen, Switzerland Phone: +41 71 913 73 00
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www.cicor.com Thank you for your attention.
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