Slides
Page 1
Update December 2024 Investor Relations Cicor Technologies Ltd.
Page 2
2 Disclaimer December 2024 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.
Page 3
3 The Cicor Group
Page 4
4 Electronification of everything Cicor is at the forefront of technology, driving miniaturization and automation in areas such as robotics, sensors, control systems and semi-conductor equipment Cicor helps improve global healthcare by the development and manufacture of applications such as hearing aids, surgical robots or smart drug delivery systems 24% of sales in HY 2024 Cicor ensures safety, reliability and communication in aircrafts, satellites and defence systems at land, sea, in the skies and beyond Turning ideas into advanced electronic solutions Healthcare Technology 33% of sales in HY 2024 24% of sales in HY 2024 Industrial Aerospace & Defence (A&D)
Page 5
5 Fastest growing manufacturer of advanced electronics in Europe The Cicor Group CHF 470-510 million 2024 Sales guidance Organic growth ahead of Electronic Manufacturing market CHF 50-60 million 2024 EBITDA guidance CHF 2.69 HY 2024 Earnings per share Fully diluted after MCB conversion, + CHF 0.95 to HY 2023 CHF 21.1 million HY 2024 Free Cash Flow 25% Sales CAGR HY 2021 to 2024 as result of organic growth and 7 acquisitions 3,350 Employees worldwide, of which >10% with engineering degree (November 2024) Mid-Term 10-13% margin. Top profitability vs peer group Before acquisitions, + 303% to HY 2023
Page 6
6 One stop shop – creating strategic partnerships with customers Contract development and manufacturing organisation - CDMO
Page 7
7 Advancing healthcare through technology 29% of sales in 2023Building of leading platforms in attractive markets • Development and manufacturing partner for medical devices supporting people to live healthier lives • True one-stop shop from device engineering to critical component development/manufacturing and assembly • Serving high-growth verticals such as smart drug delivery, robot surgery, neurostimulation • Acquisitions of Evolution Medtech (completed 02/2024) and Nordic Engineering Partners (completed 11/2024) strengthened Cicor profile as CDMO 7 31% CAGR 2021-2023 4 Market position Europe 24% Share of sales H1/2024 United Kingdom Hartlepool, Newport Germany Dresden, Radeberg, Ulm, Wutha-Farnroda / Buttlar Switzerland Boudry, Bronschhofen, Wangs Romania Arad, Bucharest Indonesia Batam Singapore Vietnam Thuan An City China Dongguan, Suzhou Sweden Norrtälje
Page 8
8 European market leader for A&D EMS 29% of sales in 2023Building of leading platforms in attractive markets • Long-standing supplier of design and manufacturing services to 30 leading A&D integrators in Europe • True one-stop shop from systems engineering, critical components, assembly, on-site support and training • Acquisition of Axis Electronics (completed 11/2021), STS Defence (01/2024) and TT Electronics’ IoT division (03/2024) turned Cicor into the European leader for A&D electronics 66% CAGR 2021-2023 1 Market position Europe 24% Share of sales H1/2024 Bedford, UK Gosport, UK Newport, UK Radeberg, Germany Ulm, Germany Boudry, Switzerland Bronschhofen, Switzerland Wangs, Switzerland 8
Page 9
9 Driving automation and miniaturisation in industry 29% of sales in 2023Building of leading platforms in attractive markets • Development and manufacturing partner for high- tech industrial electronic solutions • Serving high-growth verticals such as equipment for semiconductor manufacturing, smart building technologies, sensors and test/measurement solutions • Focus on serving regional customers in DACH region and UK – striving for regional market leadership • Acquisition of Nordic Engineering Partners (completed 11/2024) establishes a strong presence for Cicor in the Nordics 9 22% CAGR 2021-2023 ca. 10 Market position Europe 33% Share of sales H1/2024 United Kingdom Hartlepool, Newport Germany Dresden, Radeberg, Ulm, Wutha-Farnroda / Buttlar Switzerland Boudry, Bronschhofen, Wangs Romania Arad Indonesia Batam Singapore Vietnam Thuan An City China Dongguan, Suzhou Sweden Norrtälje
Page 10
10 Close to customers and competitive Expanding Cicor’s global footprint
Page 11
11 Leadership – step by step Cicor Group in HY1/2024 # 10 European market position Pro-forma 2024, from # 28 in 2021 # 1 UK market position # 1 Position in Aerospace & Defence In Europe - expanding the lead vs. # 2 # 4 Position in Healthcare Technology From acquisitions made 2021-2024 In Europe - working towards # 2 in 2028 # 1 Position in Hybrid Substrates In Europe – on par with the leading peers in the US # 3 Position in PCB for Hearing Aids Worldwide, with strong new business pipeline in healthcare technology
Page 12
12 Key Messages from HY1 2024 Cicor Group in HY1/2024 Significant growth in net sales to CHF 231.3 million, making Cicor one of Europe’s top tier electronics manufacturers Net sales growth of 16.1% year-on-year, driven by acquisitions Constant EBITDA operating margin of 10.7% Fourfold increase of free cash flow to CHF 21.1 million (before acquisitions) Solid order intake, order book remains at around one year’s worth of sales Net profit growth resulting in earnings per share of CHF 2.69 from CHF 1.74 (HY1 2023) Full-year guidance raised based on expected order and sales growth and progress in integrating newly acquired businesses
Page 13
13 Balanced exposure to strategic markets, focus on Europe Cicor Group in HY1/2024
Page 14
14 EMS Division – growth driver with leading profitability Cicor Group in HY1/2024 - Electronic Manufacturing Services (EMS) STS Defence, Evolution Medtec & TT Electronics IoT Growth strategy – M&A CHF 208.5m Net sales 11.6% EBITDA margin Closed in Q1 Contributing 24.3% to sales growth +16.5% from HY1 2023 HY1 2023: 11.4% 90% Share of Cicor Group sales Rapid integration, alignment of TT IoT sites operating margin to Group level Focus HY2/2024
Page 15
15 AS Division – technology leader with regained strength Cicor Group in HY1/2024 - Advanced Substrates (AS) Successful multi- year excellence programme Cicor site in Boudry, Switzerland CHF 23.9m Net sales 14.4% EBITDA margin Resulting in an ever more robust and future-proof business +15.7% from HY1 2023 HY1 2023: 11.8% 10% Share of Cicor Group sales Leveraging organic growth opportunities, further improve profitability Focus HY2/2024
Page 16
16 Cicor with strongest resilience and highest growth Net Sales Q1-Q3/2024 and growth comparison amongst listed European peers 0 100 200 300 400 500 600 700 800 EUR mln Q1-Q3/2023 Q1-Q3/2024 Growth -17% -16% +21% +13% -11% -5% Organic -17% -16% -4% -6% -11% -20%
Page 17
17 Cicor 2028
Page 18
18 Vision Statement Cicor 2028 – creating together We are the leading pan-European electronics design and manufacturing partner for healthcare technology, aerospace/- defence and industrial, recognised as an employer of choice, committed to operating sustainably.
Page 19
19
Page 20
20 Expect healthy market growth during strategy period The European EMS market Source: In4ma, Cicor Market driving factors: • 2020: COVID • 2021: Supply restrictions, broker surcharges • 2022, 2023: Restocking, inflation, military conflicts • 2024: Destocking, recession, weakness in EV (cars, charging) and renewable energy (China) • 2025: Expect normalization • European EMS market expected to grow at 6.5% CAGR from 2023 to 2028 • Normalisation of market in 2025 after destocking in 2024 • Unchanged longterm trends of nearshoring and increased outsourcing
Page 21
21 A comprehensive strategy with clear implementation plan Core strategy initiatives towards delivering on 2028 objectives Focus on high growth verticals Accelerate growth with M&A supporting the strategy Transformation into a true creator of products Employer of choice, inclusive, supporting personal growth Business excellence driving performance Cicor as a sustainable company on all dimensions of ESG AS Division as high tech differentiator Financial value creation and mid-term financial objectives
Page 22
22 Cicor focuses on sub-verticals with high growth and margins Market Leadership - How we outgrow the market High > 15%Mid 10% - 15%Low < 10% -2.0% 2.0% 6.0% 10.0% 14.0% Cicor EBITDA 2023 Expected Market CAGR 2023 - 2028 Cicor addressed sub-verticals Bubble size: EMEA market size 2023 in MCHF Source: New Venture Research Corp. 2023 / in4ma / estimates
Page 23
23 Transforming Cicor into a true product creation company Strengthening the engineering portion of Cicor Business case & use specification Research and product development New product introduction Electronics assembly Device assembly Distribution After sales and lifetime services customer loyalty & pricing power Product life • Expanding Cicor’s position in the early phases of the product lifecycle • Entering new regions through engineering and prototyping presence • Operating product creation services as contributor to expanded margins
Page 24
24 Business excellence driving results Cicor - Operations Strategy Customer Engineering Sourcing Manufacturing People Compliance Information Finance MISSION VISION VALUES The Business Excellence Model is a framework that combines vision, mission and values with key value-add performance categories and support functions for a harmonized roadmap to excellence.
Page 25
25 The European EMS market is highly fragmented and growing, pre-destined for consolidation Rationale for M&A – the external market view Customer loyalty Fragmented market Growing market Economies of scale Long-term market development: A consolidated market with significantly increased profitability of the leading EMS players Source: Weiss Engineering (in4ma), 2024 Source: Weiss Engineering (in4ma), 2023, 2024 1,700 EMS In Europe, consolidation has just begun: Succession, carve-outs Cicor #10 Market position (pro-forma 2024) € 25 billion Adressed market (2023), 44% of total European EMS market 6.8% Forecasted market CAGR until 2030 • Strong entry barriers in high-mix low-volume business • Acquiring customers through M&A, exten- ding share of wallet • Global footprint • Business excellence • Purchasing power • Digitization
Page 26
26 M&A Update
Page 27
27 Highly selective which opportunities are pursued Cicor is often the acquirer of choice Ability to acquire at moderate multiples Efficient and trusted M&A process with internal M&A team Market share gains post-closing Fast realization of cash and cost synergies Proven path to value creation Experience from past acquisitions
Page 28
28 Strong Financial foundation for M&A Value creation through M&A • 2023 Refinancing provides flexibility for future operational and acquisition requirements at attractive conditions • Interests linked to SARON with margin grid depending on Cicor leverage (net debt / EBITDA) • Net debt / EBITDA ratio at 1.5 (H1/2024) with strong free cash flow generation reducing leverage • Available cash, revolving credit facility and optional M&A line provide solid foundation. Around CHF 150 Million financing available for 2024 / 2025 acquisitions
Page 29
29 Clear strategy to establish Cicor as the pan-European leader for A&D, Medical and High-End Industrial Electronic solutions Value creation through M&A What we do Driving industry consolidation in Europe with a focus on well-managed manufacturers and highly attractive customer portfolios within Cicor’s core business segments. Expand into segments with lower customer retention like consumer or automotive. Enter into technologies that are not critical for winning in our core segments. Acquisitions without clear synergies Paying above market multiples. What we don’t do
Page 30
30 Strong deal flow, selective deal criteria and high success rate Value creation through M&A 11 deals under exclusivity19 NBOs issued>100 deals reviewed >1’700 EMS companies in Europe 8 deals closed to date Carve-out from Thin film business of Since announcement of our inorganic growth strategy in mid-2021 … November 2024 Key insights: ~5-10% of EMS Companies evaluated sale over past 2-3 years ~10% from initial deal review to Cicor issuing NBO ~60% of Cicor NBOs accepted and Cicor in exclusivity ~80% of exclusive processes lead to deal closure
Page 31
31 Cicor often acquirer of choice for sellers Value creation through M&A Flexible deal structures Alignment of interests Valuation & transaction process Swissness M&A track record Industry expertise Market multiples Streamlined DD Trust Cicor’s M&A edge Cicor has build up a reputation as a long-term oriented, trust-worthy strategic acquirer that makes fair, market-based offers with high deal certainty due to readily available funding, flexible deal structures, a proven M&A track record and expertise, and significant industry expertise. Readily available transaction funding Transparent process & valuation Long-term industrial vision Collaboration with local management
Page 32
32 Cicor employs a comprehensive PMI approach, ensuring a solid foundation to leverage synergies across all business activities Value creation through M&A *PMI – Post-Merger Integration Sales Engineering and Development Sourcing Manufacturing Other Cicor PMI* Pillars Main areas of synergy Foundation Finance HR ITAdministration Marketing • Activities core to our business and close to our customers • Where most potential synergies can be found • Long-term focus of Cicor’s PMI initiatives • Achieve quick-wins early and gain momentum for further PMI measures • Solid PMI of support activities builds a fruitful foundation to capture synergies in our primary business activities
Page 33
33 Cicor’s acquisitions deliver consistent and excellent results Value creation through M&A • Acquired CHF 208 million revenue (LTM pre-closing) with 7 acquisitions (CHF 95 Million excl. three 2024 acquisitions) • Cicor is delivering strong revenue synergies. 2024 revenue of acquired companies in local currency at 16% above pre - M&A LTM performance (+30% on pre 2024 acquisitions) • Acquired CHF 25 Million EBITDA (LTM pre-closing) with 7 acquisitions (CHF 15 Million excl. three 2024 acquisitions) • Significant profitability step up with growth acceleration and cost synergies post completion. 2024 EBITDA of acquired companies 40% in local currency above pre-LTM EBITDA (+41% on pre 2024 acquisitions) • Acquisitions are a key contributor to Cicor’s FCF performance • M&A net cash outlay expected to be recovered via FCF delivery of acquired companies within 5 -7 years • For 7 acquisitions** 35% of net cash outlay already recovered by FCF Generation (40% for pre 2024 acquisitions) Growth acceleration (Revenue +30%) * Profitability step-up (EBITDA +41%) * Excellent FCF Generation (40% of M&A net cash outlay already recovered) Cicor’s M&A Strategy is delivering strong topline, profitability and free-Cash-Flow results. Success consistent due to proven target selection, due diligence and PMI approaches * For acquisitions completed in 2024, the 12-month post acquisition reference period includes actuals to September 2024 and rolling forecast for the remaining period. EBITDA is excluding Management Fee allocation. ** Excl. recent acquisition of Nordic Engineering Partner on Nov. 7, 2024; more time needed for a meaningful performance assessment.
Page 34
34 Consistent Revenue Performance and Synergies Value creation through M&A * Acquired in 2024, integration not yet complete ** Weighted average revenue increase (30% increase = all acquisitions excl. 2024 M&A; 16% increase = all acquisitions incl. 2024 M&A) *** Excl. recent acquisition of Nordic Engineering Partner on Nov. 7, 2024; more time needed for a meaningful performance assessment Revenue 2024 outlook compared to LTM pre-Aquisition in local currency*** 113% 63% 25% 18% 12% 0% -17%-20% 0% 20% 40% 60% 80% 100% 120% M&A 1 M&A 2 M&A 3 M&A 4* M&A 5 M&A 6* M&A 7* 30%** 16%** • 2024 revenue of acquired companies in local currency at 16% above pre-M&A LTM performance (+30% excluding three 2024 acquisitions) • All acquisitions perform strong in terms of topline and 2025 outlook also indicates repetition of success model for most recent additions in 2024 • M&A creates true win-wins with customers in newly acquired companies. Cicor’s culture, quality and footprint extremely appreciated
Page 35
35 Consistent EBITDA Performance Value creation through M&A * Acquired in 2024, integration not yet complete ** Weighted average EBITDA increase (41% increase = all acquisitions excl. 2024 M&A; 40% increase = all acquisitions incl. 2024 M&A) *** Excl. recent acquisition of Nordic Engineering Partner on Nov. 7, 2024; more time needed for a meaningful performance assessment EBITDA 2024 outlook compared to LTM pre-Aquisition in local currency*** 173% 96% 81% 28% 22% 3% -53% -100% -50% 0% 50% 100% 150% 200% M&A 1 M&A 2 M&A 3* M&A 4 M&A 5 M&A 6* M&A 7* 41%** 40%** • 2024 EBITDA of acquired companies in local currency 40% above pre-LTM EBITDA (41% excluding three 2024 acquisitions) • All acquisitions perform strong in terms of EBITDA and 2025 outlook also indicates repetition of success model for most recent additions in 2024
Page 36
36 Consistent FCF Delivery to recovery of net M&A cash outlay Value creation through M&A • M&A net cash outlay expected to be recovered via FCF delivery of acquired companies in 5-7 years • For 7 acquisitions 35% of net cash outlay already recovered by FCF Generation (40% excluding three 2024 acquisitions) • Fast FCF recovery driven by • diligent valuation approach (4-7 EV/EBITDA multiples and never paying forward looking multiples) • Cicor operational excellence program • cash synergies of companies being part of more sizable group 46% 44% 40% 31% 24% 20% 11% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% M&A 1 M&A 2* M&A 3 M&A 4 M&A 5 M&A 6* M&A 7* 35%** 40%** * Acquired in 2024, integration not yet complete ** Weighted average cumulative FCF recovery of M&A cash outlay (40% increase = all acquisitions excl. 2024 M&A; 35% increase = all acquisitions incl. 2024 M&A) *** Excl. recent acquisition of Nordic Engineering Partner on Nov. 7, 2024; more time needed for a meaningful performance assessment Cumulative Free Cash Flow in % of Cash outlay for acquisition***
Page 37
37 M&A Summary - Cicor’s unique position to create value Value creation through M&A Attractive external market for an inorganic growth strategy Focus on known core business customer and geographical expansion Solid M&A process enabling successful, timely and cost-efficient closing of value generating transactions Proven track-record & expertise of delivering succesful results via M&A Comprehensive PMI approach enabling timely and extensive achievement of synergies Cicor’s recipe for M&A success Strong financial foundation with existing credit lines
Page 38
38 M&A Update A strong platform for organic growth and industry consolidation Active consolidation through M&A Strategic customer relationships through excellent solution finding, differentiated technology portfolio and flawless execution Focus on our three core markets with highly profitable high-mix/low-volume businesses
Page 39
39 The EMS market is a highly fragmented and growing market, pre- destined for consolidation through M&A Rationale for M&A – the external market view High customer loyalty Highly fragmented market Large, growing market • Clear economies of scale and competitive advantages of larger players. • High synergy potential in terms of revenue, cost savings and cash benefits. • Customers are actively searching for a consolidated and reliable supply base. • 1.700 EMS companies in Europe (thereof many smaller owner-led EMS companies looking for succession options). • Top 10 companies representing only 40% of the total market. • To date, no clear winners or players with clear leadership position. • EMEA’s EMS market has a size of EUR 57bn (2023) and a forecasted CAGR of 6.8% until 2030. • Cicor’s core segments (Medical, Aerospace & Defence & High End Industrial) represent around 40% of EMS market. Clear economies of scale • Cicor operates in markets with high customer loyalty. • High entry barriers for competitors in mission- critical applications through engineering partnerships, validation cycles and government regulations. • High mix / low volume EMS players with a history of consistently higher margins than commoditized low mix / high volume segments. Long-term market development A consolidated market with significantly increased profitability of the leading EMS players Source: Weiss Engineering (in4ma), 2024 Source: Weiss Engineering (in4ma), 2023, 2024
Page 40
40 Cicor has successfully acquired 7 companies since launch of its active M&A strategy Introduction - Timeline of executed transactions Carve-out from Jul-2021 Announcement of Cicor’s inorganic growth strategy Dec-2021 Strengthening presence in the Aerospace & Defence market through the acquisition of Axis Electronics Ltd. (UK) May-2022 Acquisition of SMT Elektronik to expand EMS market presence in Germany and leverage proximity to existing Cicor subsidiary RHe Microsystems GmbH Jan-2023 Further strengthening of presence in Germany through acquisition of Phoenix Mecano Digital Elektronik incl. low-cost manufacturing site in Tunisia Mar-2023 Acquisition of the thin film business of AFT in order to strengthen Cicor’s position as leading supplier of thin film substrates in Europe Jan-2024 Expansion of presence in the UK high-end electronics market through acquisition of STS defence To be continued 2024/25 Solid deal flow and highly attractive M&A pipeline in place for years to come Thin film business of Feb-2024 Acquisition of Evolution Medtec to enhance Cicor’s MedTech product development capabilities Mar-2024 Acquisition (carve-out) of three businesses from TT Electronics to strengthen presence in the UK and offer full-cycle manufacturing services in China Note: Dates in timeline refer for acquisitions to month as of when companies were/will be included in Cicor consolidation scope
Page 41
41 Recent acquisitions Acquisition of STS Defence Limited Tech & engineering provider of sustainment, support and modernization solutions for mission-critical electronics and communications systems Product examples Acquisition rationale Expand Cicor’s platform for the UK market combined with the other announced UK-based acquisitions (i.e., Axis Electronics and two of the three acquired TT Electronics businesses) Increase Cicor’s capabilities within mission- critical electronics for the Aerospace and Defence industry Location: Gosport, UK (120km south of London) FTE: 150 Financials: GBP 27.5M of sales (FY 2023) with strong operating margins Customers: medium to large customers within Aerospace & Defence and other industries located primarily in the UK market Key facts has acquired 100% of the shares of the UK based STS Defence Limited (completed January 24, 2024) Box build and cabling of CERN power systems Development of an AI-based, marine engine health monitoring system Design of Type 26 communication masts
Page 42
42 Recent acquisitions Acquisition of Evolution Medtec Srl End-to-end engineering services provider, focused on medical and paramedical applications Product engineering examples Therapy devices Acoustics Biometric monitor Class III remote control system and control app Implants Acquisition rationale Enhancing Cicor’s product development capabilities in the medical technology sector Geographic fit: proximity to Cicor’s Arad production site and geographic distribution of customers Location: Bucharest, Romania FTE: 25 Sales: in the lower single-digits million Euro range for FY 2023 EBITDA: margin comparable to Cicor in FY 2023 Customers: medium and large medical device and industrial companies in Europe, the UK, and the US Key facts has acquired 100% of the shares of the Romanian engineering company Evolution Medtec Srl (completed February 28, 2024)
Page 43
43 Carve-out from Recent acquisitions Carve-out of three manufacturing sites from TT Electronics PCBA and box builds for IoT solutions and OEMs in highly regulated markets including full life cycle EMS services and substantial testing capabilities Production sites Acquisition rationale Improved business continuity and expanded capacity with multiple EMS production facilities in the UK Platform for Cicor UK to enter into new sectors (Industrial, Medical) Integration of production site in Dongguan, China, into Cicor Asia Locations: Hartlepool, UK; Newport, UK; Dongguan, China FTE: 500 Purchase consideration (EV): GBP 20.8 mln Sales: GBP 70.2 mln (FY 2023) Customers: customer base across mission- critical, high growth sectors including Aerospace & Defence, Industrial, Green Energy Key facts has acquired 100% of the shares of TT Electronics IoT Solutions Ltd, with three businesses in the UK and China (completed March 31, 2024) Hartlepool (UK) Dongguan (China) Cardiff (UK) IoT Solutions Solutions for OEMs in highly regulated markets 25’000 sq.m of manufacturing space
Page 44
44 Electronic assemblies and systems manufacturer in industrial and medical sectors Expansion into Sweden and plans to further strengthen market position in Germany Recent acquisitions Establish a significant presence in the Nordics as a step in the transformation of Cicor towards becoming the leading pan-European partner in its chosen markets by 2028. Doubles Cicor’s product development capacity and broadens the portfolio of capabilities. Expansion of market position in Germany while maintaining focus on the target markets of medical technology, industrial and aerospace and defence. Provides state-of-the-art machinery and excellent infrastructure with further expansion reserves Customized development services and prototype production for complex electronic systems Product care Test systemsDevelopment Advanced negotiations for the acquisition of a German EMS provider with EUR 20-30 million of sales Signing expected in the upcoming weeks with closing in early 2025
Page 45
45 Financial Results HY1 2024
Page 46
46 Change in Accounting Principles – Offset Goodwill in Equity Half-Year Report 2024 • Cicor changed its accounting policy that goodwill from acquisitions will be offset directly against shareholders' equity at the time of acquisition • Previously goodwill was capitalized and amortized over its estimated useful life • This is common standard under Swiss GAAP FER and allows better comparability with other stock quoted entities • The prior year financial information was restated • Core results (excluding the amortization of goodwill and intangible assets from acquisitions) will no longer be reported • The impact of the restatement is shown in the adjacent table in CHF million reported change restated reported change restated Goodwill 20.2 -20.2 0.0 16.6 -16.6 0.0 Other intangible assets 35.7 0.0 35.7 31.9 0.0 31.9 Other assets 348.8 0.0 348.8 312.7 0.0 312.7 Total assets 404.7 -20.2 384.5 361.1 -16.6 344.5 Total liabilities 250.9 0.0 250.9 213.0 0.0 213.0 Total equity 153.8 -20.2 133.6 148.1 -16.6 131.5 Total equity and liabilities 404.7 -20.2 384.5 361.1 -16.6 344.5 Net sales 199.2 0.0 199.2 389.9 0.0 389.9 Operating costs -177.8 0.0 -177.8 -344.8 0.0 -344.8 EBITDA 21.3 0.0 21.3 45.1 0.0 45.1 Depreciation -5.8 0.0 -5.8 -11.7 0.0 -11.7 Amortization Goodwill -2.8 2.8 0.0 -5.7 5.7 0.0 Amortization other intangible assets -2.2 0.0 -2.2 -4.4 0.0 -4.4 Operating profit (EBIT) 10.5 2.8 13.4 23.4 5.7 29.0 Interest and taxes -5.6 0.0 -5.6 -17.3 0.0 -17.3 Net profit 4.9 2.8 7.7 6.1 5.7 11.8 EBITDA margin 10.7% 0.0% 10.7% 11.6% 0.0% 11.6% EBIT margin 5.3% 1.4% 6.7% 6.0% 1.5% 7.4% Net profit margin 2.5% 1.4% 3.9% 1.6% 1.5% 3.0% Equity Ratio 38.0% -3.3% 34.8% 41.0% -2.8% 38.2% Net debt -63.0 0.0 -63.0 -43.5 0.0 -43.5 Earnings per share in CHF 1) 1.10 0.64 1.74 1.37 1.28 2.66 1) Earnings per share is calculated considering the 1'267'116 conditional shares that will be created upon conversion of the mandatory convertible notes by January 2027. June 2023 (6 months) December 2023 (12 months)
Page 47
47 Long-term view – Impact of Cicor growth strategy Half-Year Report 2024 109 117 158 199 231 122 155 191 0 5 10 15 20 0 50 100 150 200 250 300 350 400 CHF million % 106 8.5% 2020 9.9% 2021 9.5% 2022 10.7% 2023 10.7% 2024 Sales HY2 Sales HY1 EBITDA margin HY1 in % • Cicor achieves best half-year results ever in terms of Sales and EBITDA, demonstrating the success of its growth strategy • Strong sales contribution from newly acquired companies • Organic sales declined by -4.4% due to weak demand caused by economic conditions in the industrial market • Strong average sales growth over four years (+21.1%) driven by M&A activity (+15.5%) and organic growth (+7.3%), partly offset by unfavorable currency development (-1.6%) Group HY 2023 HY 2024 %YoY in TCHF Sales 199’152 231’297 16.1% EBITDA 21’336 24’729 15.9% EBITDA margin 10.7% 10.7% +/- 0 bps
Page 48
48 21.3 24.7 HY 2023 HY 2024 +15.9% Financial achievements Half-Year 2024 Half-Year Report 2024 Orders received Net sales EBITEBITDA FCF excl. Acquisition 221.4 201.1 HY 2023 HY 2024 -9.2% 199.2 231.3 HY 2023 HY 2024 +16.1% 13.4 15.1 HY 2023 HY 2024 13.1% 5.2 21.1 HY 2023 HY 2024 +303.2% 7.7 11.9 HY 2023 HY 2024 +53.9% Net profit ROS 10.7% ROS 10.7% ROS 5.1% ROS 3.9% ROS 6.5% ROS 6.7% CHF million
Page 49
49 Performance 2020 – 2024 Half-Year Report 2024 Cicor Group AS DivisionEMS Division 109 117 158 199 231 122 155 191 0 5 10 15 20 0 50 100 150 200 250 300 350 400 CHF million % 106 8.5% 2020 9.9% 2021 9.5% 2022 10.7% 2023 10.7% 2024 215 239 313 390 231 Sales HY2 Sales HY1 EBITDA margin HY1 in % 82 89 135 179 209 92 169 0 5 10 15 20 0 50 100 150 200 250 300 350 400 CHF million % 82 6.4% 2020 8.4% 2021 135 10.2% 2022 11.4% 2023 11.6% 2024 163 181 270 348 209 28 28 23 21 24 25 31 21 22 0 5 10 15 20 0 50 100 150 200 250 300 350 400 CHF million % 16.8% 2020 18.0% 2021 13.2% 2022 11.8% 2023 14.4% 2024 53 59 45 43 24 90% of Group Sales 10% of Group Sales Group HY 2023 HY 2024 %YoYin TCHF Sales 199’152 231’297 16.1% EBITDA 21’336 24’729 15.9% EBITDA margin 10.7% 10.7% +/- 0 bps EMS HY 2023 HY 2024 %YoYin TCHF Sales 178’997 208’524 16.5% EBITDA 20’439 24’109 18.0% EBITDA margin 11.4% 11.6% +20 bps AS HY 2023 HY 2024 %YoYin TCHF Sales 20’638 23’868 15.7% EBITDA 2’433 3’436 41.2% EBITDA margin 11.8% 14.4% +260 bps
Page 50
50 Consolidated Income Statement Half-Year Report 2024 • Record high in Net sales and EBITDA • EBITDA margin stable at 10.7% despite negative one-time impacts of CHF 1.7 million (0.8% of Net sales) from PPA step-ups 1) • The financial result includes FX impacts of CHF +2.8 million (previous period: CHF -1.0 million) due to the weakening of the CHF. • Improvement in tax rate to 23% (previous period: 28%) 1) accounting standards require that net assets acquired in a business combination be included in the consolidated balance sheet at fair value rather than at book value. CHF million HY 2024 in % HY 2023 in % %YoY restated Net sales 231’297 100.0 199’152 100.0 16.1 Material expenses -119’406 -51.6 -109’443 -55.0 9.1 Operating expenses -87’162 -37.7 -68’373 -34.3 27.5 EBITDA 24’729 10.7 21’336 10.7 15.9 Depreciation -6’065 -2.6 -5’765 -2.9 5.2 Amortization -3’548 -1.5 -2’204 -1.1 61.0 EBIT 15’116 6.5 13’366 6.7 13.1 Financial result 311 0.1 -2’599 -1.3 -112.0 Income taxes -3’541 -1.5 -3’045 -1.5 16.3 Net profit 11’886 5.1 7’722 3.9 53.9
Page 51
51 199.2 231.3 HY 2023 +43.9 Acquisitions -3.1 FX impact -11.1 EMS organic 2.9 AS organic -0.6 Corporate and Elim. HY 2024 +16.1% (+32.1) Sales contribution Half-Year Report 2024 Organic growth: CHF -8.7 million (-4.4%) • Strong contribution from newly acquired companies • Negative currency impact due to depreciation of GBP, EUR, RON and USD against CHF • Organic decline in EMS division due to weak demand in the industrial electronics market because of the economic downturn and the postponement of a major Aerospace & Defense (A&D) project. • Organic growth in AS division from new medical business and increased demand in A&D CHF million
Page 52
52 Consolidated Balance Sheet Half-Year Report 2024 • Net debt increased by CHF 36.2 million of which CHF 51.0 million was used for the acquisition of businesses • Financial leverage of 1.50 in line with strategy and strong FCF generation build a solid foundation for continued in-organic growth • Solid equity ratio at 31.4% CHF million Jun 24 in % Dec 2023 in % restated Current assets 302’705 72.4 251’896 73.1 Non-current assets 115’288 27.6 92’626 26.9 Total Assets 417’993 100.0 344’522 100.0 Current liabilities 162’552 38.9 114’989 33.4 Non-current liabilities 124’385 29.8 98’044 28.5 Equity 131’056 31.4 131’489 38.2 Total Liabilities and Equity 417’993 100.0 344’522 100.0 Net Debt 79’643 43’484 Net debt / EBITDA LTM proforma 1) 1.50 0.96 Equity Ratio 31.4% 38.2% 1) Acquisitions are included for twelve months pro forma as defined in the covenants agreed with the banking syndicate.
Page 53
53 Consolidated Cash Flow Statement Half-Year Report 2024 • Strong cash flow from operating activities driven by strong net income performance and proven working capital management • Moderate level of CAPEX (2.4% of Net sales) • Acquisitions of subsidiaries partially funded with operating cash flow CHF million HY 2024 HY 2023 restated Net profit 11’886 7’722 Depreciation, amortization and impairment 9’613 7’969 Other non cash items -1’519 2’597 Changes in working capital 6’549 -7’421 Net cash from operating activities 26’529 10’868 Purchase of Property, plant and equipment (net) -5’430 -5’433 Purchase of intangible assets -20 -204 Acquisition of subsidiaries, net of cash acquired -51’035 -21’985 Net cash used in investing activities -56’485 -27’622 Free cash flow -29’956 -16’754 Free cash flow excl. acquisitions 21’079 5’231 Net cash from financing activities 21’358 5’545 Currency translation effects 1’265 -113 Cash flow -7’333 -11’322
Page 54
54 Return on Invested Capital Half-Year Report 2024 ROIC in % = EBIT / Average Invested Capital (12m rolling) Average Net Invested Capital (12m rolling) = Equity plus Financial liabilities 12.0 8.9 11.4 12.6 13.7 17.6 23.3 29.0 30.8 0 5 10 15 0 5 10 15 20 25 30 35 40 CHF million % 9.1% Jun-20 6.7% Dec-20 8.6% Jun-21 8.6% Dec-21 7.5% Jun-22 8.0% Dec-22 9.5% Jun-23 11.4% Dec-23 12.0% Jun-24 • ROIC above Cicor’s cost of capital • New ROIC definition in line with the change in accounting for goodwill as disclosed in footnote • Steady increase in ROIC demonstrates successful execution of Cicor's growth strategy • Increase in ROIC due to strong EBIT contribution in the last twelve months 12m rolling EBIT in CHF mio ROIC in %
Page 55
55 Operating Net Working Capital Half-Year Report 2024 66 56 64 108 131 146 0 5 10 15 20 25 30 35 40 45 50 0 50 100 150 200 CHF million % 26% HY 2019 24% HY 2020 29% HY 2021 34% HY 2022 35% HY 2023 29% HY 2024 in % of net sales, LTM ONWC 1) Acquisitions are included for full twelve months pro-forma 2) Operating NWC (ONWC): Operating inventory + operating accounts receivable – operating trade payables 1) 2) • Absolute increase in ONWC due to acquisitions • Favorable development in ONWC in % of net sales as a result of improved inventory management (customer funded inventory)
Page 56
56 Key Figures per Share Half-Year Report 2024 • Favorable EPS and market capitalization trends demonstrate strong shareholder value creation • The conversion of the MCN will result in 1’267’116 additional shares until 2027. These shares are considered outstanding for both EPS and market capitalization purposes • Optional conversion of the MCN started in January 2024 and 67’447 new shares have been created to date with no impact on EPS HY 2024 HY 2023 %YoY restated 0.0% Number of registered shares issued 30.6. 3’478’616 3’411’169 2.0% Number of Treasury shares 30.6. -307’929 -251’267 22.6% Number of outstanding registered shares 30.6. 3’170’687 3’159’902 0.3% Number of conditional shares for MCN 30.6. 1’199’669 1’267’116 -5.3% Number of outs. and cond. MCN shares 30.6. 4’370’356 4’427’018 -1.3% Ø number of outst. and cond. MCN shares period 4’415’031 4’429’695 -0.3% Net profit (in CHF thousand) period 11’886 7’722 53.9% Earnings per share (in CHF) period 2.69 1.74 54.4% Share price (in CHF) 30.6. 52.60 43.00 22.3% Market capitalization (in CHF thousand) 30.6. 229’881 190’362 20.8%
Page 57
57 Long-term development of Earnings per Share Half-Year Report 2024 7.0 7.0 4.1 6.6 7.7 13.4 15.1 4.7 3.8 1.7 5.2 3.3 7.7 11.9 1.62 1.33 1.77 0.97 3.70 5 10 15 20 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 CHF million CHF HY 2018 HY 2019 0.58 HY 2020 HY 2021 1.10 HY 2022 1.74 2.44 HY 2023 2.69 HY 2024 EBIT Net Profit Earnings per Share Earnings per Share excl. MCB • Positive development of EPS as a result of improved Net Profit performance • Dilution on EPS due to the issuance of the Mandatory Convertible Note
Page 58
58 Three M&A transactions completed in HY 2024 Half-Year Report 2024 STS Defence • One operating site in Gosport (UK), specialized in engineering solutions for the UK A&D sector • Closing of the share deal in January 2024 for a consideration of CHF 30.7 million, resulting in a goodwill of CHF 21.3 million Evolution Medtec • One operating site in Bucharest (Romania), specialized in engineering solutions for the medical sector • Closing of the share deal in February 2024 for a consideration of CHF 1.9 million, resulting in a goodwill of CHF 1.3 million IoT • Three operating sites in Newport (UK), Hartlepool (UK) and Dongguan (China) serving customers in the A&D and industrial sector • Closing of the share deal in March 2024 for a consideration of CHF 24.2 million, resulting in negative goodwill of CHF -7.5 million CHF million HY 2024 Purchase consideration 54’359 Direct costs related to acquisition 2’401 Total purchase considerations 56’759 less: Fair value of net assets acquired -41’697 Goodwill 15’062 Non-current assets 20’336 Current assets 56’641 Non-current liabilities -3’139 Current liabilities -32’141 Total fair value of net assets acquired 41’697 Purchase considerations cash 58’435 less: cash and cash equivalent acquired -7’400 Cash outflow on acquisition during the year 51’035
Page 59
59 Mid-term Targets
Page 60
60 0 100 200 300 400 500 600 2020 2021 2022 2023 2024 mCHF Net Sales Cicor’s Growth transformation delivers excellent results Financial Mid-Term Objectives for 2028 • Cicor embarqued on Growth Strategy in 2021 (8 acquisitions completed since then). • Topline has more than doubled and profitability (EBITDA margin) improved from 9% to 10.7% / 11.5% in H1 2025. • Solid Financial foundation despite M&A. H1 2024 leverage at 1.5 and 2023 Re-Financing plus cash provides financial flexibility to continue acquisition strategy (CHF 150 Million firepower for 2024 & 2025). • FCF delivery provides financial flexibility - FCF to EBITDA conversion of around 50%. • ROIC continuously improved due to Growth, Profitability improvement and NWC optimization. Guidance 2024 470-510 mCHF 0 10 20 30 40 50 60 2020 2021 2022 2023 2024 mCHF EBITDA Guidance 2024 50-60 mCHF HY1: 10.7% (11.1% ex M&A 1-timer) 0% 2% 4% 6% 8% 10% 12% 14% 2020 2021 2022 2023 HY1 2024 ROIC EBIT (12m rolling) / Average Net Invested Capital (Equity plus Financial Liabilities 12m rolling) 9.0% 9.7% 10.3% 11.6% 6.7% 8.6% 8.0% 11.4% 12.0%
Page 61
61 Organic Growth 7 - 10% p.A. Creating together: Establishing the pan-European leader Financial Mid-Term Objectives for 2028 Revenue >1’000 million CHF Profitability EBIT 7 - 10% EBITDA 10 - 13% Other ROIC 1) >15% Net Debt / EBITDA <2.75 Capex 2.5 - 3.0% • Gaining market share through focus on strategic verticals and the continued transformation into a product development and manufacturing partner (CDMO) • Balancing organic vs. inorganic growth • No dividends are considered as long as attractive growth opportunities are available that will create superior value to Cicor’s shareholders 1) ROIC in % = EBIT (12m rolling) / Average Net Invested Capital (12m rolling). Average Net Invested Capital (12m rolling) = Equ ity plus Financial liabilities
Page 62
62 Outlook
Page 63
63 Resilience and continued growth Outlook • Organic growth in the first nine months slightly negative but significantly outperforming the market – expect order intake and sales to continue recovery in Q4/2024 • Very satisfying progress in integrating newly acquired companies, especially on profitability • Unchanged guidance to Q3/2024 Business Update (provided there are no significant changes in the economic, geopolitical and financial environment) • Expect 2024 sales of CHF 470-510 million • Operating result (EBITDA) forecasted at CHF 50-60 million
Page 64
64 Cicor – an asset for your portfolio Outlook • Market with longterm growth driven by megatrends of electronification‚ outsourcing and nearshoring • Strategy 2028 targeting the most profitable segments of the market: Healthcare Technology, Aerospace & Defence, Industrial • Establishing strong and lasting USP by transforming into a product creation company • Value accretive buy and build strategy with disciplined approach and integration playbook • Management with track-record for successful organic and inorganic growth
Page 65
65 Analysts Cicor Technologies Ltd. Kepler Cheuvreux Patrick Steiner psteiner@keplercheuvreux.com +43 (1) 20 577 383 Research Partners Reto Huber reto.huber@researchpartners.ch +41 44 533 40 30 Zürcher Kantonalbank Bernd Laux bernd.laux@zkb.ch +41 44 292 37 23 Baader Helvea Zana Mamelli zmamelli@helvea.com +41 43 388 92 50 mwb Research Alexander Zienkowicz a.zienkowicz@mwb-research.com +49 40 309 293 56 The latest list of analysts covering Cicor is available on our website: https://www.cicor.com/en/investors/financial-information/analysts/
Page 66
66 Investor Relations Contacts Cicor Technologies Ltd. Alexander Hagemann CEO Peter Neumann CFO Michael Götti VP Corporate Marketing & Communications Cicor Management AG, Gebenloostrasse 15, 9552 Bronschhofen, Switzerland investor@cicor.com | +41 71 913 73 00
Page 67
cicor.com Cicor Group @cicor.group cicor.com Cicor Group @cicor.group Thank you