Cicor Technologies : Presentation Interim Report 2020

Interim Report 2020

Cicor Technologies Ltd.

August 13, 2020

Alexander Hagemann (CEO)

Patric Schoch (CFO)

Disclaimer

August 13, 2020

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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Alexander Hagemann

The Cicor Group

The Cicor Group

Your technology partner

• The Swiss leader in design and manufacturing of advanced electronics
• Unique capabilities that enable miniaturization, medical innovation, wireless and IoT
• Serving customers in growth markets
• Established 1966, listed at SIX Swiss Exchange since 1998
• 1,900 employees at 10 operating sites in Europe and Asia

Medical		Industrial		Aerospace and Defence

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Leading technologies for advanced electronics

An unparalleled offering of products and services

AMS Division

ES Division

Advanced Microelectronics and Substrates

The strongest platform in the industry for high precision electronic substrates and microelectronics:

• Thin-filmand thick-film substrates
• High density printed circuit boards (PCB)
• Microelectronic packaging and assembly

Share of Sales

25.5%

EBITDA Margin

16.7%

Electronic Solutions

Realization of advanced electronic devices along the product lifecycle:

• Engineering - from concept to mass production
• Assembly services
• Printed electronics
• Supply chain integration through high precision plastic injection molding and toolmaking

Share of Sales

74.5%

EBITDA Margin

6.5%

5

Global footprint

High tech and competitiveness - close to the customer

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Alexander Hagemann

Cicor in H1/2020

Interim Report 2020

H1/2020 was marked by the COVID-19 pandemic

• Cicor's flat and decentralized organization supported an immediate response to the crisis
• Implementation of emergency measures kept Cicor employees healthy and factories open - deliveries to customers were never interrupted*
• Financial impact reduced by proactive cost and liquidity management
• Digitalization of business processes leads to lasting benefits

* Excluding China that represents only a small portion of Cicor sales

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Cicor in H1/2020

Financials reflect resilience in the challenging environment

• Sales decrease by 17.3% to CHF 109 million (local currencies: Decline of 13.6%)
• Robust EBITDA margin of 8.5% (PY: 9.0%)
• Customers take a wait-and-see approach: Order intake decrease by 17.2% to CHF 92.6 million
• Medical sales almost flat in local currencies, strongest decline in watches & consumer

Net sales by industry		Net sales by export region		Net sales by production region
	8%	2%	1%		6%	1%
	0%	1%		0%		20%
		6%
	10%
				16%			21%
8%					31%
				17%
				29%			41%
11%			46%
							36%
			47%
9%
2020 / 2019		2020 / 2019			2020 / 2019
9%	Industrial
		◼︎
			◼︎	Medical		◼︎	Switzerland
			◼︎	Aerospace & defence		◼︎	Europe (without
			◼︎	Watches & consumer			Switzerland)		◼︎	Switzerland
	26%		◼︎	Automotive & transport		◼︎	Asia	39%	◼︎	Europe (without
		◼︎	Communication		◼︎	America		Switzerland)
		46%	43%
	22%
		◼︎	Other	◼︎	Other	◼︎	Asia
		48%

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Advanced Microelectronics and Substrates (AMS)

AMS Division with mixed results

• Sales decrease of 11% to CHF 28.0 million (PY: CHF 31.4 million)
• • PCB sales site hit hardest due to high exposure to hearing aid market
  • Thin-filmsubstrate sales almost unaffected
• AMS Division share of group sales up by 2 points to 26%
• EBITDA margin remained healthy at 16.8% (PY: 18.3%)
• The site in Boudry (Switzerland) drives miniaturization of PCB by industrializing the modified semi-additive process (mSAP), a further development of the DenciTec technology
• The sites in Radeberg (Germany) and Wangs (Switzerland) installed 3 new laser systems for high-precision micro material processing

10

Electronic Solutions (ES)

ES Division with pandemic-related decline

• Sales decrease by 18.9 % to CHF 81.5 million (PY: CHF 100.5 million) due to the COVID-19 pandemic:
• • Customers closing their factories temporarily
  • Reduced end market demand (e.g. hearing aids)
• EBITDA margin still robust at 6.4% (PY: 6.9%)
• Project win for a new type of drug delivery system is a milestone in the further development of the Cicor Group
• The Printed Electronics lab in Bronschhofen (Switzerland) was able to win first development projects from two customers out of the medical technology sector
• The site in Bronschhofen (Switzerland) has installed an additional clean room and specialized equipment to support the production start for a new customer in the semiconductor equipment market

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New business pipeline

Focus on business development drives future growth

• Highest ever volume of quoted new projects
• Cicor USP well recognized by OEM for high-end electronics
• Trade tensions and COVID-19 pandemic are driving Nearshoring and China+1 strategies in the electronics industry

Annual sales opportunity from quoted

new business

300%

250%

200%

150%

100%

50%

0%

12

Patric Schoch

Financial Results H1/2020

Financial achievements H1/2020

All figures in CHF million at actual FX rates

Orders received	Net sales	EBIT			EBITDA	Net profit
		-17.2%			-17.3%			-41.9%			-22.3%			-56.6%
								9.0%	8.5%
									5.3%
									(ROS)
											3.7%					2.9%
																	1.5%
2019	2020	2019	2020	2019	2020	2019	2020	2019	2020

• Sales decline of -13.6% in local currencies

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Performance 2015 - H1/2020

All figures in CHF million at actual FX rates

	Total Group					AMS Division
					254							19.1%
250				248		250						16.9%	16.8%
								15.9%
		217
200	181	189		125	122		200
150			108	9.9%	9.8%		150	9.9%
89	97	8.9%	8.5%
100							100			6.0%
6.7%	6.7%		123	132		50	43	53	63	61
50	92	93	109	109	50	32	30
		23	21	28
								26	25	31	31	28
0							0	22
2015	2016	2017	2018	2019	2020	2015	2016	2017	2018	2019	2020

	ES Division
250
200												185		193
							164
					147
150	131								92
							94
										79					6.4%
						75
100															8.1%
		66
										8.0%
			7.9%		8.2%
		7.1%
50	66		71		85		92		101	82
0	2015	2016	2017	2018	2019	2020

Group	H1/2019	H1/2020	%YoY
in TCHF
Sales	131 915	109 047	-17.3%
EBITDA	11 924	9 267	-22.3%
ROS%	9.0%	8.5%	-0.5%pt.

AMS	H1/2019	H1/2020	%YoY
in TCHF
Sales	31 416	27 972	-11.0%
EBITDA	5 739	4 690	-18.3%
ROS%	18.3%	16.8%	-1.5%pt.

ES	H1/2019	H1/2020	%YoY
in TCHF
Sales	100 540	81 513	-18.9%
EBITDA	6 913	5 248	-24.1%
ROS%	6.9%	6.4%	-0.5%pt.

Sales H2		Sales H1		EBITDA% (before restructuring)

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Net profit performance YTD 2020

in CHF million

-2.1

(-56.6%)

ROS:
2.9%	-4.1
				+0.2
			-0.3	1.5%
			+1.5

H1 2019	Volume and	Overhead	Depr. & Amort.	Financial result	Tax	H1 2020
	Margin impact	and others			expenses

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Consolidated Income Statement

in TCHF

H1/2019	in %		H1/2020	in %		%YoY

Net sales	131 915	100.0		109 047	100.0	-17.3
Material expenses	-72 181	-54.8		-57 236	-52.5	-20.7
Operating expenses	-47 810		-36.2		-42 544	-39.0		-11.0
Depreciation and amortization	-4 909		-3.7		-5 193	-4.8		5.8
EBIT	7 015		5.3		4 074	3.7		-41.9
Financial result	-1 513		-1.1		-938	-0.8		-38.0
EBT	5 502		4.2		3 136	2.9		-43.0
Income taxes	-1 654		-1.3		-1 467	-1.4		-11.3
Net profit / (loss)	3 848		2.9		1 669	1.5		-56.6

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Consolidated Balance Sheet

in TCHF

		31.12.2019	in %		30.06.2020		in %
	Current assets	125 744	68.0		127 919		69.6
	Non-current assets	59 202	32.0		55 768		30.4
	Total Assets	184 946	100.0		183 687		100.0
	Current liabilities	53 794	29.1		49 456		26.9
	Non-current liabilities	52 347	28.3		60 048		32.7
	Equity	78 805	42.6		74 183		40.4
	Total Liabilities and equity	184 946	100.0		183 687		100.0
	Net Debt	16 687			20 273
	Gearing ratio (net debt in % of
	21.2			27.3
	equity)
	Net debt / EBITDA (annualized)	0.67			0.92
	Equity Ratio	42.6%			40.4%

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Cash Flow Statement

in TCHF

	30.06.2019		30.06.2020
Profit / (Loss) before tax
5 502		3 136
Non cash items	5 223		5 551
Changes in working capital¹
3 372		-2 505
Interest, tax paid / received
-2 114		-1 239
Cash flow from operations
11 983		4 943
Property, plant and equipment (net)	-9 099		-4 284
Intangible assets	-434		-1
Cash flow from investments
-9 533		-4 285
Free Cash Flow	2 450		658
Net cash from / (used) in fin.act.²	-5 362		3 676
Currency translation effects
-131		-592
Cash flow	-3 043		3 742

¹ Working capital including other current assets and other current liabilities

² Actual 2020 including -4 339 TCHF distribution to shareholders from free reserves (Actual 2019: -2 898 TCHF)

19

Alexander Hagemann

Outlook 2020

Outlook

Expectations for 2020

• Assuming there will be no further lockdown in our customer's markets, Cicor expects a recovery of the business from Q4/2020 onwards
• Cicor provides the following guidance for the full year of 2020, assuming a stable currency situation compared to H1/2020:
• • Net Sales: 15% to 20 % below 2019
  • EBIT margin: 3% to 4%
• Due to the record-high pipeline of new projects, further market share gains can be expected in the coming years
• Cicor is in a much stronger financial and operational position than many competitors and should therefore emerge from the crisis as a winner

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Mid-term targets

Cicor Technologies Ltd.

	Market Focus		Topline growth		EBIT target		Profit distribution
	Industrial		Above the
		growth of				Stable and
				6 - 8%
	Medical		global			increasing
	Aerospace		electronics				Dividends
			production

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Investor Relations

Agenda 2020/2021

	Investora 2020	September 24, 2020 in Zurich (Switzerland)
	Annual Report 2020	March 2021
	Annual Shareholder's Meeting 2021	April 2021 in Boudry (Switzerland)
	Interim Report 2021	August 2021

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Investor Relations

Contacts

Alexander Hagemann	Patric Schoch	Michael Götti
CEO	CFO	VP Corporate Marketing & Communications

Cicor Management AG Gebenloostrasse 15 CH - 9552 Bronschhofen

[e-mail] [phone]

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Thank you for your attention

www.cicor.com/investors

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