results 2015 - cicor...i i 14 results 2015 (2/2) sound balance sheet position change from ifrs to...

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Press Conference March 9th, 2016 Results 2015

H. J. Essing, Dr. J. Dübendorfer, P. Schoch

Press Conference 09.03.2016

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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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Agenda Press conference

Profile 2015 Milestones “Innovation for Success” Financials 2015 Outlook Q & A


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Cicor Profile Dr. Jürg Dübendorfer


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The Cicor Group Profile

Global acting Swiss group organized into two Divisions (Advanced Microelectronics & Substrates and Electronic Solutions) PCB (Printed Circuit Boards), Microelectronics, Substrates and Electronic Solutions (Electronic Manufacturing Services)

Providing customized solutions sophisticated technologies design and development skills engineering know-how paired with production flexibility with 10 sites in Europe, Eastern Europe and Asia about 1900 employees

Sales organization in Europe, America, Asia Listed on the SIX Swiss Exchange: CICN


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Extract only Customer references

09.03.2016 Cicor respects customer confidentiality

Press Conference

http://www.google.ch/url?sa=i&source=images&cd=&cad=rja&docid=2kke10frAiuAXM&tbnid=JrgaM072r6_c0M:&ved=0CAgQjRw&url=http://www.ehs-env.com/contractor/utas/index.html&ei=i8HsUu2UH_Gv7AaKuoHIBg&psig=AFQjCNGSfIrlKhUsaVZxd3stE3bo5itlxQ&ust=1391334155647145

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Board of Directors / Group Management Profile


Board of Directors Heinrich J. Essing Chairman Robert Demuth Vice Chairman Andreas Dill Erich Haefeli Group Management

Dr. Jürg Dübendorfer CEO Patric Schoch CFO Jürgen Steinbichler Executive Vice President AMS Division Erich Trinkler Executive Vice President ES Division

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Fr. 29.00

2014 2013

90%

100%

130%

120%

150%

140%

110%

80%

2016 2015

+3% +19%

Inde

xed

shar

e pr

ice

(dai

ly c

losi

ng)

-3%

-29%

Cicor share price development


Escatec

Free Float 60.89%

HEB Swiss

4.86% Quaero Capital 5.00%

29.25%

Shareholding as per 31.12.2015

SPI

Cicor Techn N (CICN)

Share price performance 2013 – 2016 Highest paid price: 01.07.2014 CHF: 38.90 Lowest paid price: 02.10.2015 CHF: 22.65 Average daily trading volume in shares: 3 191

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Cicor's global footprint

Global and local presence


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Diversified customer portfolio Markets


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Cicor business model Profile

Market observations Outsourcing trend is

strengthening Search for best price

manufacturing ongoing Need for box build

ongoing

Cicor business model Original Design

Manufacturer (ODM) and Contract Manufacturer (CM)

Unique combination Focus on medium to

high-end segments


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Milestones 2015 Dr. Jürg Dübendorfer


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Results 2015 (1/2)

Difficult financial year 2015 Net sales at CHF 180.6 mio., 10.8% lower than 2014 EBITDA at CHF 12.1 mio., CHF 7.6 mio. lower than in

2014 (before restructuring) Consolidation of company sites in Switzerland led to

restructuring costs of CHF 4.7 Mio. Net profit CHF 0.7 mio. (before restructuring) Continued strong core segments medical and industrial

Expansion of technological leadership continued Significant and well focused investments into renewal

and modernization of production equipment and facilities in all regions

Strategic priorities Differentiation through leading-edge technologies and

comprehensive manufacturing services (“box build”) Strengthening of Swiss ES engineering services


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Results 2015 (2/2)

Sound balance sheet position Change from IFRS to Swiss GAAP FER, adjusted

balance sheet total of CHF 151.3 mio., equity ratio as at December 31st, 2015 was 39.5%

Net debt at CHF 20.5 mio. (2014 CHF 21.2 mio.) BoD will propose to the Annual Shareholders’

Meeting no distribution of earnings

Strong BoD and management team in place Heinrich J. Essing new chairman of the Board of

Directors assumed responsibility in April 2015 Dr. Jürg Dübendorfer joined June 2015 as the new

Group CEO Jürgen Steinbichler joined Cicor in August 2015 as

Head of AMS Division


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Difficult business environment Advanced Microelectronis & Substrates (AMS)


Demanding economic environment in 2015 leads to an overall reduction in sales

A large proportion of the market segments stagnated. The Swiss watch making industry continued to disappoint

Merger of the two Swiss PCB production sites in Moudon and Boudry into a single facility in Boudry

Unique combination of special ultra-thin, flexible substrates and micro-assembly starts to be recognized in the market

The new projects acquired will begin to generate sales during 2016 and these will have a positive impact on the results

The turnaround will be achieved and the division will return to the growth path and become Cicor’s most profitable Division

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Challenging financial year Electronic Solutions (ES)

SNB decision to release minimum FX rate CHF/EUR has big impact on Swiss operations

Significant drop in sales of two major customers resulted in lower sales

Big pressure from customers on price reductions. Measures put in place to save cost (supply chain and personnel)

Re-positioning of Swiss activities towards more development and industrialization activities

Romania site benefitted from the tense situation in Switzerland, Russia and Ukraine. Still strong growth potential in Asia

Building projects in Switzerland and Romania ongoing Focusing on boosting efficiency and strengthening of

the global sales organization


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Sales pattern and Division key-figures

Results 2015


ES 2014 2015 %YoY

Sales 145 662 131 578 -9.7

EBITDA bef. Restr. 13 912 9 380 -32.6

ROS% 9.6% 7.1% -2.5%pt.

AMS 2014 2015 %YoY

Sales 56 934 49 510 -13.0

EBITDA bef. Restr. 7 594 4 907 -35.4

ROS% 13.3% 9.9% -3.4%pt.

(all figures in TCHF at actual FX rates)

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Innovation for success Dr. Jürg Dübendorfer


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Electronic Solutions Innovation for success

The Cicor Group develops control platforms for sophisticated applications based on current technologies Cicor supports its clients through all development phases from the design of control

concepts user interaction and

graphic concepts through implementation,

verification industrialization and production


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Innovation Insights Symposiums Innovation for success

Two successful Cicor

Innovation Insights symposiums in 2015 smart wearable

devices active implants

Cicor established a platform for experts


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Financials 2015 Patric Schoch


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Financial achievements 2015

Orders received Net sales Net profit

-9.4%

2015

176.3

2014

194.7

-10.8%

2015

180.6

2014

202.5

-70.0%

2015

3.1

2014

10.2

-38.4%

2015

12.1

2014

19.7

-157.9%

2015

-4.1

2014

7.0

6.7%

9.7%

5.1%

(ROS) 1.7% -2.2%

3.5%

(all figures in CHF mio at actual FX rates)


Net profit bef. restructuring

-90.6%

2014

7.0

2015

0.7

0.4%

3.5%

EBITDA bef. restructuring

Orders received lower by 4.7% in local currencies Lower net sales of 6.9% in local currencies Restructuring cost of CHF 4.7 mio EBIT of CHF -1.7 mio after restructuring, EBITDA of CHF 7.4 mio after restructuring

EBIT bef. restructuring

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Net Profit development 2015 vs. 2014

2

0

-2

-4

-6

8

6

4

in C

HF

milli

on

2015

-4.1

Restructuring

-4.7

Net profit bef. Restr

+0.7

Tax expenses

+1.7

Financial result

-0.9

Depr. & Amort.

+0.4

Overhead and others

-11.1 (-157.9%)

Margin change

-5.9

2014

+7.0

-1.6

-2.2%

ROS:

3.5%


0.4%

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in TCHF Actual 2014 in % Actual

2015 in % %YoY

Net sales 202 458 100.0 180 612 100.0 -10.8 Material expenses -101 905 -50.3 -89 461 -49.5 -12.2

Operating expenses -80 891 -40.0 -79 034 -43.8 -2.3

Restructuring - - -4 718 -2.6 NA

Depreciation and amortization -9 433 -4.7 -9 051 -5.0 -4.0

EBIT 10 229 5.1 -1 652 -0.9 -116.2

Financial result -1 271 -0.6 -2 159 -1.2 69.9 EBT 8 958 4.4 -3 811 -2.1 -142.5 Income taxes -1 952 -1.0 -245 -0.1 -87.4

Net profit / (loss) 7 006 3.5 -4 056 -2.2 -157.9

Consolidated income statement

09.03.2016 Press Conference

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in TCHF Actual 2014

in % Actual 2015

in %

Current assets 95 015 63.3 101 404 67.0

Non-current assets 55 115 36.7 49 910 33.0

Total assets 150 130 100.0 151 314 100.0

Current liabilities 45 326 30.2 42 505 28.1

Non-current liabilities 37 365 24.9 49 109 32.5

Equity 67 439 44.9 59 700 39.5

Total liabilities and equity 150 130 100.0 151 314 100.0

Net Debt 21 233 20 534 Gearing ratio (net debt in % of equity) 31.5 34.4

Net debt / EBITDA bef. Restr. 1.1 1.7

Equity Ratio 44.9% 39.5%

Consolidated Balance Sheet


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in TCHF Actual 2014

Actual 2015

Profit / (Loss) before tax 8 958 -3 811

Non cash items 10 470 15 595

Changes in working capital* 1 147 -2 156

Interest, tax paid / received -2 264 -1 612

Cash flow from operations 18 311 8 016 Property, plant and equipm. (net) -10 350 -8 408

Intangible assets -154 -153

Cash flow from investments -10 504 -8 561

Free Cash Flow 7 807 -545 Net cash from / (used) in fin.act. -5 725 11 738

Currency translation effects -445 -518

Cash flow 1 637 10 675

Cash Flow Statement

* Working capital including other current assets and other current liabilities


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Outlook Dr. Jürg Dübendorfer


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Outlook

The target for 2016 is growth in sales and results

Cooled market environment and uncertainty at international stock markets unsettle electronics market

All restructuring and change activities will demonstrate positive impact during 2016 The Cicor positioning with leading-edge technologies and comprehensive

manufacturing services (“box building”) is unique and will further result in increased new customer acquisition

Cicor has already been able to significantly reduce its dependence on the Swiss franc, further decisive steps to mitigate the consequences of the appreciation of the Swiss franc are continuing

Cicor continues to look out for strategic M&A opportunities


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Questions / Answers


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Agenda 2016 and contacts Investor Relations

IR Agenda 2016 19 April 2016 Annual General Meeting 17 August 2016 Half-year results 2016 March 2017 Annual report 2016 Investor Relations Contacts Cicor Management AG Heinrich J. Essing, Chairman, and Dr. Jürg Dübendorfer, CEO WTC, Leutschenbachstrasse 95 8050 Zurich, Switzerland Phone: +41 43 811 44 05


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Thank you!


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