the schaffner group · pdf fileinvestora 2017 caution regarding forward-looking statements...

Investora 2017 Company presentation

The Schaffner Group

Investora 2017

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 30 September 2016 as well as the Interim Report for the period ended 31 March 2017. 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.

SLIDE 2 © Schaffner Group

Kurt Ledermann | CFO

Schaffner – Shaping electrical power

| Global leader in solutions for shaping electrical power

| Founded 1962, headquarters in Luterbach (Switzerland)

| Listed at SIX Swiss Exchange since 1998 (Ticker: SAHN)

| Market capitalization CHFm 207 (as of 8 September 2017)

| FY 2015/161 net sales CHFm 185.6 (-8.5% in LC), EBIT margin 0.8%, net profit CHFm 0.4

| H1 2016/172 net sales CHFm 94.6 (+4.5% in LC), EBIT margin 6.4%, net profit CHFm 4.2

Key facts


If not mentioned otherwise, all numbers in this presentation are referring to H1 2016/17

1 FY per 30 September

2 H1 per 31 March

| Group returned to growth in the first half of 2016/17

| EMC and Automotive division achieved double-digit profit margins

| Power Magnetics division is proceeding

with its successive turnaround

| Order intake is recovering

| New CEO, Marc Aeschlimann, took up

1 September 2017

Balanced sales and global footprint

Mid-term sales and EBIT margin development

USA 22% Europe 41% Asia 37%

Production Sites

Highlights H1 2016/17

0.0%

3.0%

6.0%

9.0%

80

90

100

110

120

H113/14

H213/14

H114/15

H214/15

H115/16

H215/16

H116/17


© Schaffner GroupSLIDE 6

Power Magnetics Power Quality Large EMC filters

Close to market: USA, Hungary, China

Automotive EMC components Small EMC filters

Best cost: Thailand

Shanghai (CHN)

Lamphun (THA)

Kecskemét (HUN)

Wytheville (VA, USA)

Product images are not to scale

Competitive advantage of manufacturing close to customers

Creating value


-15.0%

-5.0%

5.0%

15.0%

25.0%

2016/17 H12015/162014/152013/142012/132011/122010/112009/102008/092007/082006/072005/06

Target: ROCE > WACC

WACC ROCE

7.3% WACC

19.6% ROCE

Due to the conversion of the financial reporting system to Swiss GAAP FER from fiscal year 2015/16 and the associated effects, the return on capital employed (ROCE) has risen by approximately 2 percentage points comparatively.

| AutomotiveContinued growth

| EMC Recovery in machine tools and power supplies

| PM and EMCSlight recovery in motor drivesand traction

AutomotiveMotor drivesMaschine toolsPower suppliesTractionRenewable energyElectrical infrastructureOther markets

Core markets

26%

20%

16%

14%

11%

5%5% 3%

Machine tools

Automotive

Motor drives

Share of net sales H1 2016/17

Traction


Power supplies

Guido Schlegelmilch | Head EMC division

A view on markets and divisions

| Schaffner technology protects electronic devices from grid distortions ...

What we do


Medical devices

EMC filter

Grid

| ... and keep distortions from the grid ...

What we do


Escalators

EMC filter

Grid

Power Qualityfilter

| ... to ensure reliable and efficient operation of power electronics.

What we do


Escalators

EMC filter

Power Qualityfilter

Medical devices

EMC filter

Grid

General market drivers


Energy efficiency, renewable energy, smart grids

More power electronic systems installed

More electricaldistortions

Market ofSchaffner increases

| Schaffner markets show sustainable growth potential


Schaffner serves its markets by 3 divisions with strong position in their niches


EMC division Power Magnetics division Automotive division

| No. 1 in EMC filters

| Power Quality filters

| No. 3 in mission critical components for high power, high reliability electronics (transformers/inductors)

| No. 2 in antennas for keyless entry systems

| EMC filters for electric/hybrid cars


Division specific market drivers


EMC division Power Magnetics division Automotive division

| New applications(e.g. EV charger)

| New technologies(middle frequency)

| Higher sensitivity of grids

| New norms & regulations

| New applications(e.g. DC/DC inverters)

| New technologies(high power middle frequency)

| New niche markets(e.g. medium voltage motor drives)

| Trend for E-Mobility

| Increased pick-up rate for keyless access systems



EMC division: Most complete portfolio of EMC filter solutions

Low power filter High power filter Power Quality filter

| Significant new projects and customers won | Improved cost structure due to new product design and operational excellence e.g.

increased automation| Power Quality business successfully launched second generation of passive harmonic filters

53.7 56.3

46.6 48.745.4

48.4 45.7

0

25

50

75

H1 13/14 H2 13/14 H1 14/15 H2 14/15 H1 15/16 H2 15/16 H1 16/17

13.5%

15.3%

7.8%

11.2%

7.0%

11.5%

13.6%

H1 13/14 H2 13/14 H1 14/15 H2 14/15 H1 15/16 H2 15/16 H1 16/17

CHF millionSegment sales Operating margin

EMC division: Sound margin potential over the medium-term


Power Magnetics division: Leading solutions for mission-critical applications

Water-cooled inductorfor motor drives

Filter inductor for heavy-dutyfreight locomotives

Transformer/inductor combinationfor inverters


| Sales in China in rail technology and wind turbine market saw positive developments| Delivery situation in USA gradually improved after completion of plant merger| Still in a turnaround phase

Power Magnetics division: Basis for a steady recovery laid

Segment sales Operating margin

30.836.5

33.2 30.425.2

20.2 23.4

0

25

50

75

H1 13/14 H2 13/14 H1 14/15 H2 14/15 H1 15/16 H2 15/16 H1 16/17

5.6% 7.1% 5.4%

-0.7%

-11.7%

-30.8%

-14.8%

H1 13/14 H2 13/14 H1 14/15 H2 14/15 H1 15/16 H2 15/16 H1 16/17

CHF million


Automotive division: Serving high growth niche markets

Low Frequency Antennas (LFA) for keyless entry systems

EMC filters for electric and plug-in hybrid vehicles (EV/PHEV)

| Sustained high demand for antennas for keyless entry systems| Multiyear contract with a European premium automobile manufacturer for EV-filters | Growth opportunities in the market for filters

Automotive division: Long-term margin potential well above industry average

Segment sales Operating margin

18.1 19.122.6 20.2 22.0 24.4 25.4

0

25

50

75

H1 13/14 H2 13/14 H1 14/15 H2 14/15 H1 15/16 H2 15/16 H1 16/17

3.3%

10.0%12.4%

17.1%

21.4%

27.2%

23.2%

H1 13/14 H2 13/14 H1 14/15 H2 14/15 H1 15/16 H2 15/16 H1 16/17

CHF million


We clean distortions wherever electrical power is converted by electronics

© Schaffner Group

Buildings

Renewable energy

Rail transportation

Automotive

Health care

LED

Oil & Gas

Smart grids

Marine

Robotics

Machinery

SLIDE 22

Water treatment

Kurt Ledermann | CFO

Shareholders structure, pay-out & mid-term goals

20.29

9.79

6.78

4.56

3.023.01

3.00

49.55

| 1,198 shareholders registered with voting rights in the share register (as of 8 September 2017) | Of the issued shares, 99.8% represented free float| Shares of unregistered owners amounted to 17.8% of the issued shares (as of 8 September 2017)

Shareholders structure

Shareholders structurein %


Investor

Aktionärsgruppe Buru Holding

J. Safra SarasinInvestmentfonds

UBS Fund Management

MirabaudAsset Management

IPConcept

Credit Suisse Funds

Dr. Jörg Wolle

Shareholders < 3%

3.50

0.00

4.50 4.503.50

4.50

6.50 6.50

0.000.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16

CH

F

24% 24%28%

57%

46%

33%

65%

0

10

20

30

40

50

60

70

| Schaffner Holding AG pursues a sustainable dividend policy, guided by a target range of 25% to 35% of net profit

Historical pay-out

SLIDE 25



Target dividend pay-out ratio range25-35% of net profit

Pay-out ratioPay-out

We shape electrical power

The Schaffner Group

the schaffner group · pdf fileinvestora 2017 caution regarding forward-looking statements...

Documents