Cicor Technologies (CICN) CMD 2024 Presentation summary

Strategic direction and market positioning

• Launched Strategy 2028 to become the leading pan-European electronics design and manufacturing partner, focusing on high-growth, high-profitability verticals in healthcare, aerospace, defense, and industrial markets.

• Emphasizes transformation from a manufacturing partner to a contract development and manufacturing organization (CDMO) and product creation company, expanding engineering resources and early-stage product involvement.

• Maintains a strong local-for-local approach, empowering regional teams and decentralizing decision-making.

• Core values include customer focus, long-term relationships, performance, integrity, respect, and trust, summarized as "Creating Together."

• Targets market leadership in chosen verticals, with current #1 positions in aerospace/defense EMS in Europe, #4 in healthcare technology, and #10 in industrial EMS, aiming for #2 in healthcare by 2028.

Market and business overview

• Fastest growing advanced electronics manufacturer in Europe, with 25% sales CAGR from HY 2021 to 2024, driven by organic growth and seven acquisitions.

• 2024 sales guidance of CHF 470-510 million and EBITDA guidance of CHF 50-60 million; HY 2024 EPS CHF 2.69, up CHF 0.95 YoY.

• Focused on healthcare technology (24% of sales), industrial (33%), and aerospace & defense (24%), with strong positions in each segment.

• Unique Southeast Asia footprint with minimal competition, supporting global customer needs.

• Strategy leverages megatrends in electronification, outsourcing, and nearshoring.

Financial performance and targets

• Achieved 25% average sales growth, driven by both acquisitions and organic expansion, with earnings per share up 90-95% and free cash flow quadrupling year-over-year.

• Maintains robust sales and EBITDA guidance despite market headwinds, with significant market share gains even during industry downturns.

• 2028 mid-term targets: revenue above CHF 1 billion, organic growth 7-10% annually, EBITDA margin 10-13%, ROIC above 15%, and net debt/EBITDA below 2.75.

• CapEx remains at 2.5-3% of sales, above industry average, focusing on technology and capacity investments with high ROI.

• No dividend planned in the near term, prioritizing reinvestment and M&A for growth.