180927 Schaffner Investora 18 final - uploads-ssl.webflow.com

Schaffner GroupInvestora 2018

Investora 2018

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 2017 as well as the

Interim Report for the period ended 31 March 2018. 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

Marc Aeschlimann | CEO

Schaffner – Shaping electrical power

| Global leader in solutions for electrical distortion

| Founded 1962

| Headquarters in Luterbach (Switzerland)

| Global footprint with production sites in China, Hungary, Thailand, USA

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

| Market capitalization >CHF 200m

| FY 2016/171 Net sales CHF 195.7m (+6.6% in LC), EBIT margin 5.9%, net profit CHFm 8.7

| H1 2017/182 Net sales CHF 108.3m (+10.2% in LC), EBIT margin 8.3%, net profit CHFm 4.0

Key facts


Please note:

If not mentioned otherwise, all numbers in this presentation are referring to H1 2017/18

1 FY per 30 September

2 H1 per 31 March

| Strong organic growth above strategic goal

| Significant increase in operational profitability

| One-off effects on EBIT level due to insurance

payments and restructuring costs

| US tax reform impacts net income

| Quick recovery from fire in Thailand without

negative market impact

| Further restructuring in PM to accelerate

turnaround

| Executive committee complete again

Global footprint with balanced sales

Mid-term sales and EBIT margin development

USA 19% Europe 45% Asia 36%

� Production sites

Highlights

0.0%

3.0%

6.0%

9.0%

80

90

100

110

120

H1

13/14

H2

13/14

H1

14/15

H2

14/15

H1

15/16

H2

15/16

H1

16/17

H2

17/18

H1

17/18


EBIT marginSales in

CHFm

| 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

Power Quality

filter

Grid

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

What we do


Escalators

EMC filter

Power Quality

filter

Medical devices

EMC filter

Grid

General market drivers support continuous growth


Energy efficiency,

automation (Industry

4.0), smart grids

Energy efficiency,

automation (Industry

4.0), smart grids

More power electronic

systems installed

More power electronic

systems installed

More electrical

distortions

More electrical

distortions

Market of

Schaffner

increases

Market of

Schaffner

increases


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


| Filters for electromagnetic

compatibility

| Power Quality filters

| Main drivers:

- new applications (EV chargers)

- new technologies

- norms and standards

| Mission critical components

for high power, high

reliability electronics

| Main drivers:

- new applications

(DC/DC inverters)

- new technologies

| Antennas for keyless entry

systems

| EMC filters for electric/

hybrid cars

| Main drivers:

- e-mobility


EMC divisionEMC division Power Magnetics divisionPower Magnetics division Automotive divisionAutomotive division

© Schaffner GroupSLIDE 11

EMC division: Most complete portfolio of EMC filter solutions

Low power filter High power filter Power Quality filter

| Increased market share in all major regions

| EBIT margin stable despite high margin pressure and higher material prices

| Successful launch of new generation active harmonic filters

53.756.3

46.6 48.745.4

48.445.7

52.655.5

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

H2

16/17

H1

17/18

13.5%

15.3%

7.8%

11.2%

7.0%

11.5%

13.6% 13.6% 13.6%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

H1

13/14

H2

13/14

H1

14/15

H2

14/15

H1

15/16

H2

15/16

H1

16/17

H2

16/17

H1

17/18

in CHFm

Segment sales Operating margin

EMC division: Strengthened leading position


in %

Power Magnetics division: Leading solutions for special applications

Water-cooled inductor

for motor drives

Filter inductor for heavy-duty

freight locomotives

Transformer/inductor combination

for inverters


| Strong growth in all markets

| Turnaround accelerated under new leadership

| Major low-margin contracts re-negotiated

| Efficiency continuously improved

| New division head appointed

Power Magnetics division: Basis for a steady recovery laid


30.836.5

33.230.4

25.220.2

23.426.6 27.1

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

H2

16/17

H1

17/18

5.6%7.1%

5.4%-0.7%

-11.8%

-30.8%

-14.8% -13.2%-12.0%

-50.0%

-35.0%

-20.0%

-5.0%

10.0%

H1

13/14

H2

13/14

H1

14/15

H2

14/15

H1

15/16

H2

15/16

H1

16/17

H2

16/17

H1

17/18


in CHFm in %without

restructuring

without

restructuring

Automotive division: Serving selected niche markets

Low Frequency Antennas for

keyless entry systems

EMC filters for electric and

plug-in hybrid vehicles (EV/PHEV)


| Sustained high demand for antennas for keyless entry systems

| Fire incident in Thailand without impact on top line

| One-time effects on EBIT level due to insurance payments

| Additional filter solutions for e-mobility under development

| New division head appointed

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


18.1 19.122.6

20.2 22.024.4 25.4

21.925.7

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

H2

16/17

H1

17/18

23.6%

3.3%

10.0%12.4%

17.1%

21.4%

27.2%

23.2%

16.1%

34.5%

0.0%

7.5%

15.0%

22.5%

30.0%

37.5%

H1

13/14

H2

13/14

H1

14/15

H2

14/15

H1

15/16

H2

15/16

H1

16/17

H2

16/17

H1

17/18


in CHFm in %

without one-

time effects

without one-

time effects

Schaffner cleans distortions wherever electrical power is converted by electronics

© Schaffner Group

Buildings

Renewable energy

Rail transportation

Automotive

Health care

LED

Oil & Gas

Water treatment

Smart grids

Marine

Robotics

Machinery

SLIDE 17

Outllook & Group financial medium-term goals

Outlook

| Good order pipeline in all three divisions supported by positive economic environment

| Growth opportunities in the areas of motor drives, traction, power supply and machine tools

| Good mid-term opportunities with filters for electric vehicles

| Turnaround of Power Magnetics division shows good progress

| Unclear impact of tariffs, exchange rates and material prices

Group financial medium-term goals

| Net sales growth, organic: > 5%

| EBIT: > 8%


Kurt Ledermann | CFO

Financials

Financial highlights H1 2017/18

| Net sales CHF 108.3 million (+14.5%; +10.2% in LC)

| Book-to-bill ratio 1.06 (1.05)

| Operating profit (EBIT) CHF 9.0 million (up from CHF 6.0 million)

| EBIT margin 8.3% (6.4%)

| Net profit CHF 4.0 million (down from CHF 4.2 million)

| ROCE 25.0% (up from 19.6%), annualized

| EPS CHF 6.24 (down from CHF 6.57)

| Free cash flow CHF -1.6 million (up from CHF -3.1 million)

| Equity ratio 35.9% (down from 39.6%)

20 © Schaffner Group

Creating shareholder value

© Schaffner Group21

-15.0%

-5.0%

5.0%

15.0%

25.0%

H1 17/1816/1715/1614/1513/1412/1311/1210/1109/1008/0907/0806/0705/06

WACC ROCE

8.4% WACC8.4% WACC

25% ROCE25% ROCE

Due to the conversion of the financial reporting system to Swiss GAAP FER from and including fiscal year 2015/16 and the associated effects, the return on capital

employed (ROCE) has risen by approximately 2 percentage points comparatively.

| At the end of August 2018, 1,123 shareholders registered with voting rights in the share register

| 99.7% free float

Shareholders structure

Shareholders structurein %


20%

10%

7%

5%

3%3%

3%

49%

Aktionärsgruppe Buru Holding

J. Safra Sarasin

Investmentfonds

UBS Fund Management

Mirabaud

Asset Management

Cologny Advisors

IPConcept

Dr. Jörg Wolle

Shareholders < 3%

We shape electrical power

Schaffner Group

CONTACTS

Marc Aeschlimann

Chief Executive Officer

[email protected]

Kurt Ledermann

Chief Financial Officer

[email protected]

Documents

180927 Schaffner Investora 18 final - uploads-ssl.webflow.com