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1/6 Vontobel Research / 22-09-26

– Research – HUBER+SUHNER (Buy, 255): Industry and Communication segments enter a new era of growth - OCS the largest upside option - Buy and PT of CHF 255 reiterated

– What's new? – ROCHE (Buy, 410): Positive Phase 2 results for enicepatide in people living with type 2 diabetes and overweight or obesity; PT CHF 410, Buy

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2/6 / Equity Morning Note / 22-09-26 Vontobel

RESEARCH Industry and Communication segments enter a new era of growth - OCS the largest upside option - Buy and PT of HUBER+SUHNER CHF 255 reiterated Analyst: Bloomberg: HUBN SE Price: CHF 177 FACTS & COMMENT: Enterprise value (mns) CHF 3,207 Market cap (mns) CHF 3,324 Industry growth is broadening: Since mid-2025, demand in Aerospace & Reporting Currency CHF Defense as well Test & Measurement end-markets has accelerated. Industrial, the highest margin segment within the group, has seen 1H26 Buy PT: CHF 255 orders growing organically 47% y/y and prospects remain very positive, supporting our view that the upturn is structural rather than cyclical. We see significant growth opportunities in LEO satellite (volumes and expanding value) and defense applications (NATO's 2035 budget target). Income Stat. (mns) 2025A 2026E 2027E 2028E Revenues OCS opportunity: Polatis, a H+S subsidiary, recently brought its 1st EBITDA automated high-volume OCS production line on stream, with a 2nd line EBIT ramping now. This indicates that the Polatis' OCS can be industrialized at Net profit Growth (%) 2025A 2026E 2027E 2028E acceptable yields and scaled to thousands units/year. This increases the Revenues - probability of follow-up orders from Google, Polatis' 1st hyperscaler OCS Net profit customer. We believe Nvidia is likely to adopt OCS in its data center designs EPS (rep.) by 2028, offering substantial upside from wider adoption in the mid-term. Margin analysis (%) 2025A 2026E 2027E 2028E Chinese hyperscalers are also sampling Polatis' OCS, according to Luster, a Gross margin H+S reseller in China. EBITDA margin EBIT margin Balance sheet (%) 2025A 2026E 2027E 2028E NWC/Revenues OUR CONCLUSION: Net debt (mns) - We upgraded H+S after the 1H26 result on very strong order intake, which Equity to tot. assets signaled sustained dynamic growth ahead in key and higher-margin Gearing - Net debt/EBITDA -1.6 -0.8 -0.9 -1.0 applications such as aerospace, defense and test & measurement. OCS CF statement (mns) 2025A 2026E 2027E 2028E could prove an even larger opportunity than we currently assume, offering Capex - substantial upside potential beyond our estimates. With H+S entering a new Operating FCF phase of growth across its segments, we expect profitability to expand Inc(+)/Dec(-) in cash markedly on mix and scale effects. Buy and PT of CHF 255 confirmed. CF analysis (%) 2025A 2026E 2027E 2028E Op. CF margin Capex/Revenues 6.7 5.8 5.3 5.0 Capex/Depreciation Per-share data (CHF) 2025A 2026E 2027E 2028E EPS (rep.) EPS (adj.) Net cash Dividend Payout ratio (%) Valuation (X) 2025A 2026E 2027E 2028E P/E P/E (adj.) P/B EV/EBITDA FCF yield % 2.6 1.3 3.0 3.7 Dividend yield % 1.4 1.3 1.9 2.2 Profit. ratios (%) 2025A 2026E 2027E 2028E ROIC ROE ROA BB Consensus (mns) 2025A 2026E 2027E 2028E Revenues EBITDA EBIT Net profit EPS Conference call/analyst meeting No conference call or analyst meeting scheduled

Source: Bloomberg, Vontobel Equity Research