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©Schaffner Group 2012
The Schaffner Group Corporate presentationFiscal year 2011/12
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©Schaffner Group 2012
The Schaffner Group
Caution regarding forward‐looking statements
This communication contains statements that constitute “forward‐looking statements”, including, but not limited
to, statements relating to the implementation of strategic initiatives, and other statements relating to our future
business development and economic performance.
While these forward‐looking statements represent our judgments and future expectations concerning the
development of our business, a number of risks, uncertainties and other important factors could cause actual
developments and results to differ materially from our expectations.
These factors include, but are not limited to, (1) general market, macro‐economic, governmental and regulatory
trends, (2) movements in currency exchange rates and interest rates, (3) competitive pressures,
(4) technological developments, (5) changes in the financial position or credit worthiness of our customers, and
counterparties and developments in the markets in which they operate, (6) legislative developments,
(7) management changes and changes to our Business structure and (8) other key factors that we have indicated
could adversely affect our business and financial performance which are contained in other parts of this document
and in our past and future filings and reports, including those filed with the SIX Swiss Exchange.
More detailed information about those factors is set forth elsewhere in this document and in documents furnished
by Schaffner Group, including Schaffner Holding's Annual Report for the year ended September 30, 2012. Schaffner
Group is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward‐
looking statements whether as a result of new information, future events, or otherwise.
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©Schaffner Group 2012
The Schaffner Group
Corporate presentation fiscal year 2011/12
Daniel Hirschi
Alexander Hagemann
Kurt Ledermann
Chairman of the Board
Chief Executive Officer
Chief Financial Officer
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©Schaffner Group 2012
Daniel Hirschi | Chairman of the Board
Fiscal year 2011/12
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©Schaffner Group 2012
The Schaffner Group
Highlights 2011/12
• Challenging economic environment
• Strong management action to secure acceptable EBIT margin in H2
• Focus on innovation
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©Schaffner Group 2012
Alexander Hagemann | Chief Executive Officer
Solid business in a difficult environment
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©Schaffner Group 2012
The Schaffner Group
Agenda
• Solid business in a difficult environment
• Financial highlights
• Conclusion
• Q&A
Alexander Hagemann
Kurt Ledermann
Alexander Hagemann
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©Schaffner Group 2012
The Schaffner Group
Highlights 2011/12
• Weak H1 sales recovered in H2, resulting in ‐3.1% full year growth
European industrial customers in cyclical low
Shift of PV market from Europe to Asia
Contribution of Schaffner MTC Transformers
• EBIT margin on 4.1% (7.0%) with strong recovery in H2 to 6.1%
Negative product mix (Europe weak, Asia stable)
Factory underutilization (i.e. H1)Cost reduction program implemented
• Schaffner MTC integration successfully completed
• Cautiously positive outlook for FY 2012/13
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The Schaffner Group
Leading component supplier to the power electronics industry
“Schaffner provides users globally with solutions that enable the efficient and reliable operation of electrical and electronic equipment, applying leading know‐how in electromagnetics and power electronics.”
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©Schaffner Group 2012
The Schaffner Group
Solutions from Schaffner eliminate distortions of electrical power
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The Schaffner Group
Unchanged growth prospects in strategic markets
Motor drives New energy efficiency standardsby many governments
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Photovoltaics• Utility‐scale projects in USA, China, Middle East
• Japan moving to renewables Wind power • Repowering of existing installations
• Off‐shore developments
TrainsContinued investment in China, Europe, USA, RussiaElectromobilityEuropean OEM launch new car models with hybrid and electric propulsion
©Schaffner Group 2012
The Schaffner Group
Growth in Automotive compensates for weakness in Rail Technology
• Strong growth of Automotive
• Sharp drop of railway equipment demand in China• Photovoltaic inverter demand moved to Asia• Weak industrial electronics market in Europe
23%
15%
9%14%
16%
13%
8% 2%
Markets in %
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Strategic markets: 61% (65%)
Energy‐efficient drive systems
Renewable energy
Rail technology
Automotive electronics
Other core markets: 37% (33%)
Power supply systems for electronic devices Machine tools and robotics
Electrical infrastructure
Other markets: 2% (2%)
Other
FY 2011/12
©Schaffner Group 2012
The Schaffner Group
Weak economy drives European share of Group sales below 50%
17% 18%
27%
33%35% 35%
0%
10%
20%
30%
40%
FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12
Share of Asia‐Pacific sales (in %)
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47%
35%
18%
Sales by regions (in %)
Europe
Asia‐Pacific
Americas
FY 2011/12
• Cyclical low of industrial electronics market in Europe• Asia‐Pacific stable after shift of PV demand• Growth of North America share after MTC integration
©Schaffner Group 2012
The Schaffner Group
Schaffner´s Divisions: Global leaders in niche markets
60%26%
14%
Automotive division 14%• Antennas for keyless entry systems• EMC filters for hybrid/electric cars
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EMC division 60%• EMC filters for all kinds of power electronic systems, from medical devices and machine tools to photovoltaic inverters
• Harmonic filters for power grid stability in large installations
Power Magnetics division 26%• Mission critical components for very high power, high reliability electronics
Divisions
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The Schaffner Group
EMC division: Weak European markets weigh on results
• Cyclically low demand from European industrial customers
• Schaffner follows the solar equipment market to Asia
• Program for structural improvement of operating margins
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71.78
57.1650.25
55.54
0
20
40
60
80
H1 10/11 H2 10/11 H1 11/12 H2 11/12
Net sales (CHFm) Operating result (CHFm)
12.25
7.92
5.497.06
0
2
4
6
8
10
12
14
H1 10/11 H2 10/11 H1 11/12 H2 11/12
©Schaffner Group 2012
The Schaffner Group
Establishing ECOsineTM as leading brand in Power Quality
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Semiconductor plantSouth Korea
Coast Guard shipGermany
AquariumSingapore
ResortMacau
Office towerHong Kong
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The Schaffner Group
Power Magnetics division: Solid turnaround in H2
• Limited recovery of traction market in H2
• Schaffner MTC Transformers fully integrated
• Well positioned in solar inverter market Japan
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18.38 17.6720.02
26.47
0
5
10
15
20
25
30
H1 10/11 H2 10/11 H1 11/12 H2 11/12
Net sales (CHFm) Operating result (CHFm)
0.37
‐0.7‐0.58
0.29
‐0.8
‐0.6
‐0.4
‐0.2
0
0.2
0.4
0.6
H1 10/11 H2 10/11 H1 11/12 H2 11/12
©Schaffner Group 2012
The Schaffner Group
2007 2008 2009 2010 2011 2012
Creation of a leading supplier with global footprint
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2006: Acquisition ofJacke Transformatoren2006: Acquisition ofJacke Transformatoren2006: Acquisition ofJacke Transformatoren
2008: Production start Hungary2008: Production start Hungary2008: Production start Hungary
2011: Acquisition ofMTC Transformers2011: Acquisition ofMTC Transformers2011: Acquisition ofMTC Transformers
2007: Production start China2007: Production start China2007: Production start China
2011: Lean factoryChina2011: Lean factoryChina2011: Lean factoryChina
©Schaffner Group 2012
The Schaffner Group
Automotive division: Exceeding expectations
• Demand for keyless entry systems grows fast
• Operating profit breakeven earlier than expected
• Significant projects in electromobility with leading European OEM
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8.429.2
10.7
13.96
0
2
4
6
8
10
12
14
16
H1 10/11 H2 10/11 H1 11/12 H2 11/12
Net sales (CHFm) Operating result (CHFm)
‐0.15‐0.25
‐0.35
0.91
‐0.6
‐0.4
‐0.2
0
0.2
0.4
0.6
0.8
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H1 10/11 H2 10/11 H1 11/12 H2 11/12
©Schaffner Group 2012
The Schaffner Group
A strong line‐up of end customers: a valuable stepping stone
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©Schaffner Group 2012
Kurt Ledermann | Chief Financial Officer
Fiscal year 2011/12
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©Schaffner Group 2012
The Schaffner Group
Financial highlights
• Net sales CHF 176.9 m (CHF 182.6 m)
• Growth in local currencies ‐4.7%
• Book‐to‐bill 1.02 (0.97)
• EBIT margin on 4.1% (7.0%)
• Net profit CHF 3.9 m (CHF 10.2 m)
• EPS CHF 6.2 (CHF 16.0)
• Improved cash‐to‐cash cycle of 87 days (91 days)
• Positive free cash flow CHF 1.5 m (CHF 9.6 m)
• Sound balance sheet with 43% (30.09.11: 42%) equity ratio
• Proposal to the AGM to pay‐out 33% (28%) or CHF 2.00 (CHF 4.50) per share
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Fiscal year 2011/12
©Schaffner Group 2012
The Schaffner Group
Bookings and sales94.7
93.8
69.3
63.2
98.3
109
102.3
75.8
89.1
91.2
86.2
96.2
71.9
61.4
84.6
104.3
98.6
84.0
81.0
95.9
0
20
40
60
80
100
120
H1 07/08 H2 07/08 H1 08/09 H2 08/09 H1 09/10 H2 09/10 H1 10/11 H2 10/11 H1 11/12 H2 11/12
Bookings Sales
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in CHFm
Fiscal year 2011/12
©Schaffner Group 2012
The Schaffner Group
Income statement
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4.9 4.9 4.9 8.9 8.9 8.9
‐7.1
5.6 5.6 5.6
9.4 9.4 9.4 9.0 9.0 9.0
3.8
‐2.1
1.4 5.85.8
H1 08/09 H2 08/09 H1 09/10 H2 09/10 H1 10/11 H2 10/11H2 07/08H1 07/08 H1 11/12 H2 11/12
in CHFm
EBIT Gross marginEBIT margin
EBIT margin FY 08/09 EBIT margin FY 09/10 EBIT margin FY 10/11EBIT margin FY 07/08 EBIT margin FY 11/127.6% 4.1%7.9%‐6.9% 7.0%
‐9.9%
‐3.4%
6.6%9.0% 9.1%
4.5%
9.3%5.8%
1.7%
6.1%
22.5%
30.4% 31.4% 31.4% 31.4% 31.0%30.2%29.3% 28.1% 27.6%
Fiscal year 2011/12
©Schaffner Group 2012
The Schaffner Group
Cash flow
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Fiscal year 2011/12
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24
20
16
12
8
4
0
in CHFm
14.214.2
Cash 1.10.11
3.93.9
Netprofit
6.76.7
Depr. &Amortisation
‐ 0.8
ChangeProvisions
‐ 3.9‐ 3.9
Change in Net Working
Capital
‐ 1.4‐ 1.4
Others
‐ 3.4‐ 3.4
Capex
‐5.1‐5.1
Financing
10.310.3
Cash 30.9.12
©Schaffner Group 2012
The Schaffner Group
Financial result
in CHFm
Interest expenses net ‐1.4
Currency gain & loss ‐0.5
Other financial expenses ‐0.3
Financial result ‐2.2
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Fiscal year 2011/12
©Schaffner Group 2012
Tax
in CHFm
Earnings before taxes 5.0
‐ Applicable tax rate 21%
Expected tax ‐1.1
Income taxes as per income statement ‐1.1
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Fiscal year 2011/12
©Schaffner Group 2012
The Schaffner Group
Proposal for the appropriation of retained earnings
The Schaffner Board of Directors proposes to the AGM a distribution of CHF 2.00 per share (entitled to dividends) out of the reserve for additional paid in capital.
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Fiscal year 2011/12
Proposal of Board of Directors in CHFm
Share capital 20.7
Legal reserve 4.1
Reserve for treasury shares 1.5
Reserve for additional paid in capital 44.7
Retained earnings 12.8
Net profit of FY 2011/12 1.7
Sharehoders Equity Schaffner Holding 85.5
©Schaffner Group 2012
Alexander Hagemann | Chief Executive Officer
Outlook & Conclusion
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©Schaffner Group 2012
The Schaffner Group
Conclusion & Outlook
• Solid recovery in H2 after a difficult H1
• EMC division implementing a program for structural EBIT improvement
• Schaffner MTC Transformers successfully integrated
• Automotive division exceeding expectations
Outlook
• All divisions have started the new FY on a positive note
• Economic environment stays challenging
• Expect improvement of net sales and EBIT YoY and especially H1 over H1
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©Schaffner Group 2012
The Schaffner Group
Schaffner Group mid‐term targets
• Organic growth rate exceeding 8% annually• Focused acquisitions in Divisions EMC and Automotive
Targeted operating margins (EBIT):
EMC division 16% ‐ 20%
Power Magnetics division 8% ‐ 10%
Automotive division 8% ‐ 10%
Schaffner Group 9% ‐ 12% (incl. 3% Group Service Cost)
Dividend pay‐out ratio 25% ‐ 35% of Net Profits
Equity ratio 40% ‐ 50%
Target for FY 2014/2015:
Net sales CHF 250 – 280 million
Operating margin (EBIT) 9% ‐ 12%
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©Schaffner Group 2012
The Schaffner Group Corporate presentationFiscal year 2011/12
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