Cicor Technologies (CICN) CMD 2024 Presentation summary

Strategic vision and market positioning

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

• Focused on high-growth, high-profitability verticals, avoiding lower-margin sectors like automotive and consumer electronics.

• Emphasizes transformation from a manufacturing partner to a contract design and manufacturing organization (CDMO), expanding engineering capabilities and customer integration.

• Pursues a 'Creating Together' philosophy, prioritizing long-term customer partnerships and co-engineering.

• Plans to expand geographically, including a targeted entry into the U.S. within 12–18 months and leveraging a unique Southeast Asia footprint to meet global customer needs.

Growth drivers and operational excellence

• Achieved 25% average sales growth, driven by both acquisitions and organic expansion, with significant market share gains despite industry headwinds.

• Maintains strong positions: #1 in aerospace/defense in Europe, #4 in healthcare, and #10 in industrial, with ambitions to climb further.

• Implements a business excellence model across 20 global sites, targeting 4–6% annual productivity improvement, >95% on-time delivery, and FPY >99%.

• Invests 2.5–3% of revenue in CapEx and over CHF 22 million in automation and advanced technologies by 2028, creating capacity for CHF 250 million additional growth.

• Strong commitment to sustainability, ESG compliance, and people development, with a group-wide ESG scorecard and clear carbon footprint targets.

M&A strategy and financial performance

• M&A is central, with seven acquisitions in three years, focusing on high-synergy, customer-rich targets in core verticals and new regions.

• Selective approach: reviews 100+ deals, pursues 10–20%, and maintains moderate leverage (1.5x), with CHF 150 million available for further acquisitions.

• Post-merger integration is rapid and effective, delivering 30% revenue and 41% EBITDA uplift on average for pre-2024 deals, with strong free cash flow recovery.

• Targets CHF 1 billion+ revenue by 2028, with 7–10% organic growth and 10–15% total growth (including M&A), EBITDA margin 10–13%, and aims for 15%+ ROIC.

• No dividend planned; capital prioritized for growth and acquisitions, with equity raises only if exceptional opportunities arise.