Focus topics: performance and targets

Focus topics: performance and targets

Sustainable growth

The financial health and commercial success of HUBER+SUHNER are the result of its value creation, long-term and customer-focused innovation, and strong relationships with its employees, customers, shareholders, suppliers, local communities, and other stakeholders. Financial strength and economic success are prerequisites for investing in the interests of the environment and society, which in turn is an indispensable part of corporate responsibility.

The business strategy includes four components that synergistically influence and strengthen each other: the entry into new markets, the ambition to strong positions in target markets, the development of innovative products and technologies, and the ability to sustain these positions through operational excellence. HUBER+SUHNER builds its sustainable growth on diversified market verticals in three different states of maturity: core markets and focused market verticals, growth initiatives, and opportunities with growth potential.

Core markets and focused market verticals are the basis of today’s business. Their turnover is crucial to secure the company in its current size and setup. The aim is to be in attractive core markets which allow the company to use all its strengths to take a strong position. Their contribution is essential to reach today’s goals and fund the growth initiatives. The five core markets HUBER+SUHNER serves are test and measurement, mobile network, communication equipment manufacturer (CEM) components, fixed access network, and rolling stock. The category of focused market verticals includes a range of highly attractive niche applications in smaller-sized markets such as energy, high power charging, medical device, and process industries.

Growth initiatives have been identified based on their potential for significant sales, profitable growth, and their strategic fit: aerospace and defense, data center, and rail communications, electric vehicle, and advanced driver assistance system (ADAS). To succeed, HUBER+SUHNER ensures a dedicated approach, pre-investments in resources and the formation of highly committed teams. Growth initiatives are expected to grow faster than the company and the markets. They have the potential in size and attractiveness to become core markets of the future.

In 2022, net sales share from growth initiatives was 26.0 % (minus 1.8 percentage points y-o-y including the new growth initiatives ADAS and rail communications). The reason for this slight decrease is the lower net sales in the largest growth initiative aerospace and defense as well as the strong performance of some of the core markets. The goal of reaching 33 % of net sales from growth initiatives in 2023 remains unchanged. This objective will, however, be diffucult to achieve as long as the core markets continue to grow at the same pace as in 2022.

Opportunities with growth potential are attractive business ideas at an early stage. The company identifies these business ideas by following megatrends associated with basic human needs and then providing connectivity solutions that help satisfy those needs. The business ideas either develop into growth initiatives or interesting niche businesses or they are not pursued further if the opportunity is not sustainable. Therefore, the company strives to always have a broad range of such opportunities in the pipeline.

Greenhouse gas emissions and climate change

The Executive Group Management decided to make greenhouse gas (GHG) emissions and climate change a focus topic because it considers this topic as one of, if not the greatest challenge of mankind presently. In 2017, the company had two greenhouse gas emissions reduction targets approved by the Science Based Targets initiative (SBTi). CEO Urs Ryffel officially signed the net-zero commitment at SBTi. In 2023, the company plans to have new interim targets approved by SBTi, one of which is to reach net-zero GHG emissions in scope 1+2 by 2030. In 2022, HUBER+SUHNER managed to further reduce its scope 1+2 GHG emission by 17 % (year-on-year) to 9500 t.

Community involvement and development

Community involvement and development became a focus topic because it stands out due to its many aspects. It includes the promotion of education, culture, and sports, as well as support for groups at the edge of social and workplace exclusion in the catchment area of our sites. Open, honest, and fair dealings with local and regional administrative authorities are also part of this complex topic. In 2022, HUBER+SUHNER supported 173 community development projects with a total CHF 579 000 in the form of cash or contributions in kind as well as in paid leave hours of employees engaging in such projects.

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