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1 energy efficiency and reliability Schaffner Holding AG / Corporate presentation / Fiscal 2007/2008 energy efficiency and reliability 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 SWX 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, 2008 as well as the interim report 2007/2008. 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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Page 1: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

1

energy efficiency and reliabilityenergy efficiency and reliability

Schaffner Holding AG / Corporate presentation / Fiscal 2007/2008

energy efficiency and reliability

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 SWX 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, 2008 as well as the interim report 2007/2008. 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.

Page 2: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

2

energy efficiency and reliability

The Schaffner Group – Corporate presentation fiscal 2007/2008

Highlights

Solutions for efficient and reliable power

Global leader combining EMC and Power Quality

Comment on fiscal 2007/2008

Summary

energy efficiency and reliability

Strategic highlights

First complete year after divestment of Test Systems Division

Measures taken to improve operating excellence are showing results>> e.g. manufacturing transfers to Hungary as announced in April

2008 are successfully completed as of November 30, 2008

Strong position in growth markets with still favorable prospectsreduce the negative impacts from recession

>> e.g. renewable energy – wind and solar power

Strong position on the Chinese domestic market supports sustainable growth through major infrastructure projects

>> e.g. public transport – rail infrastructure

Innovative products and solutions to adress growth markets>> e.g. harmonic filters

Jacke getting on track after strong turnaround effort

Page 3: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

3

energy efficiency and reliability

Financial highlights

Sales and earnings well above previous year

Consolidated net sales increased by 7.1% to CHF 182.4 m

Order intake increased by 8.2% to CHF 188.5 m

Book-to-bill ratio of 1.03

EBIT increased by 33.3% to CHF 13.6 m

EBIT margin expanded to 7.5%

Net profit increased by 63% to CHF 8.8 m / EPS CHF 14.53

Proposed payout CHF 3.50 per share / payout ratio ~ 25%

energy efficiency and reliabilityenergy efficiency and reliability

The Schaffner Group

Solutions for efficient and reliable power

Page 4: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

4

energy efficiency and reliability

Schaffner´s business: Electromagnetic Compatibility (EMC)

Powerline interference

Power grid

Components for Electromagnetic Compatibility (EMC) guarantee the safe and reliable operation of electronic devices by filtering unwantedelectromagnetic noise

energy efficiency and reliability

Power Quality (PQ) solutions from Schaffner enable power electronic systems to operate with high efficiency and reliability in the power grid

Schaffner´s business: Power Quality

Power PlantPower plant

Harmonic distortions

Page 5: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

5

energy efficiency and reliability

Schaffner Schaffner Schaffner

Grid 3

Schaffner is the leading provider of solutions that enable powerelectronic devices to operate with high reliability and efficiency

Addressed market of CHF 1.2 billion61% of sales in power electronic applications that require both power quality and EMC solutions

energy efficiency and reliability

The Schaffner Group

Global leader combining EMC and Power Quality

energy efficiency and reliability

Page 6: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

6

energy efficiency and reliability

By applying a market-driven approach, Schaffner aims to expandleadership in EMC and to achieve number 3 position in Power Quality

1

2

3

45678

910

11

World market sharefor EMC filters

Schaffner

Calculation after assumed acquisition of Epcos by TDK

1

2

3

4

5

678910

Schaffner

Share of top 45 PQ competitors 2007 –

Europe and North America

only

Schaffner is clear market leader for EMC filters, being the only global player

Schaffner has strong potential to move from 10th position amongst Power Quality peers to 3rd position, due to excellent capabilities and global footprint, leading to an increasing number of customers who choose Schaffneras preferred supplier

energy efficiency and reliability

Cornerstones of Schaffner´s strategy

1. Focus on growth markets

2. Expansion in China and Southeast Asia

3. New products to address growing markets

4. Lean processes and optimized cost structure

5. External growth

Page 7: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

7

energy efficiency and reliability

FY 2007/2008 0 5 10 15 20 25 30 35 40

Electronic devices &power supplies

Motor drives

Machine tools & robotics

Renewable energy

Telecom equipment

Automotive electronics

Public transport

Other

CHFm

20,5%

19,2%

7,1%

14,0%

13,8%

5,6%

18,8%

1,0%

% of sales

1. Focus on the growth markets of energy efficient motor drives and renewable energy already results in 34.5% contribution to sales -public transport becomes an additional growth driver

energy efficiency and reliability

2. Although Europe will remain the largest market, growth in Asia leadsto increasing share of sales

Europe: - Leadership in EMC - Growth in solar, wind

Asia: - 40% growth in China,South East Asia(in local currency)

- PQ ramp up in Shanghai- 6 Sales offices in China

Americas: - Stable position in astagnant marketenvironment

Asia 18 %

Europe 75 %

Americas 7 %FY 2007/2008

Page 8: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

8

energy efficiency and reliability

3. Capture growing markets with unique products (1/2)

Harmonics filters increase reliability and reduce cost of power electronic installations

With ECOsine, Schaffner has launched a superior product offering

Schaffner will add new technologies and products to the portfolio

Target to achieve CHF 40 million of additional sales until 2013

energy efficiency and reliability

3. Capture growing markets with unique products (2/2)

DestructionOver sizingOverheating Malfunctions

Harmonics are becoming a serious problem

Page 9: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

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energy efficiency and reliability

4. 90% of manufacturing in low cost countries, restructuring of European manufacturing. Presence worldwide close to customers

Sales and application center

Manufacturing plantDevelopment center

Büren, Germany110 employees• PQ R&D• PQ Manufacturing

Luterbach, SwitzerlandHQ, 115 employees• Group Innovation Center• Sample Manufacturing

Lamphun, Thailand950 employees• Product Development• EMC, Automotive Manufacturing

Kecskemét, HungaryNew factory completed in 05/08, 200 employees• EMC, PQ Manufacturing

Shanghai, China650 employees• Product Development• EMC, PQ Manufacturing

energy efficiency and reliability

5. Acquisitions to accelerate growth

Schaffner will stay focused: acquisitions must support our coreproduct lines and markets

Fragmented structure of the Power Quality market (largestcompetitor has 7% world market share) offers investmentopportunities

Through global sales network and low cost manufacturing, substantial synergies are created when integrating acquiredcompanies

Short term focus on small acquisitions with significant strategicimpact

Page 10: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

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energy efficiency and reliability

The Schaffner Group

Fiscal 2007/2008Kurt Ledermann, Chief Financial Officer

energy efficiency and reliability

energy efficiency and reliability

Financial highlights

Sales and earnings well above the prior-year figures

Measures to improve profitability are well on track

Balance sheet strengthened

Proposal to pay out CHF 3.50 per share (reduction in nominal capital)

Page 11: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

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energy efficiency and reliability

Income statement 2007/2008 in comparison with previous year

in CHF 1,000 1.10.2007to 30.09.2008

Continuing operationsNet sales 170'281

Cost of goods sold -115'913

Marketing and sales -16'025Research, development and application -10'094General and administration -17'434Amortisation of customer relations -646

EBIT 10'169EBIT margin % 6.0

Financial result -568EBT 9'601

Income taxes -2'038Profit for the period from continuing operations 7'563

Discontinued operationsProfit for the period from discontinued operations -2'160

Net profit 5'403

1.10.2006to 30.09.2007

Other income 0

182‘445

-128‘289

-17‘124-10‚639-13‘891

-699

13‘6067.5

-201611‘590

-2‚7828‘808

0

8‘808

1‘803

energy efficiency and reliability

Development of semester results

0

1

2

3

4

5

6

7

8

9

10

-2

-1

CHFm

58.564.3 66.8

71.0

79.2

91.1

-1.5

1.10.8

2.8

1.11.3

3.0

3.8

2.72.0

2.6

4.55.0 5.1

3.5

4.3

6.7

5.6

S1 04/05 S2 04/05 S1 05/06 S2 05/06 S1 06/07 S2 06/07

0

10

20

30

40

50

60

70

80

90

100

CHFmNet Profit Group Net Profit EBIT Sales

S1 07/08 S2 07/08

2.2 2.2

4.8

6.6 6.6

8.886.2

96.2

Page 12: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

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energy efficiency and reliability

Balance sheet 2008 in comparison with previous year (extract)

30.09.200730.09.2008 Delta

Intangible assets 13'29813‘402 104

Tangible fixed assets 14'53115‘068 537

Fixed assets 35'69435‘351 -343

Inventories 29'96330‘077 114

Trade receivables 33'41534‘124 709

Cash and cash equivalents 28'79626‘928 -1‘868

Current assets 111'519105‘451 -6‘068

Total assets 147'213140‘802 -6‘411

Shareholders' equity 51'71052‘617 907

Total liabilities 95'50388‘185 -7318

Total liabilities and shareholders' equity 147'213140‘802 -6‘411

in CHF 1'000

energy efficiency and reliability

Trend net debt and shareholders‘ equity

Gearing : 1.05 0.89 0.83 0.77 0.40 0.43

43.846.2 46.1

51.0 51.7 52.6

46.2

41.138.2 39.1

20.622.6

34.7 35.2 34.436.0 35.1

37.4

0

10

20

30

40

50

60

70

30.09.2003 30.09.2004 30.09.2005 30.09.2006 30.09.2007 30.09.20080

5

10

15

20

25

30

35

40

45Equity Financial net debt Equity ratio in %

CHFm In %

Page 13: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

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energy efficiency and reliability

Cash flow statement 2007/2008 in comparison with previous year

in CHF 1'000 2006/2007 Delta

Cash flow from operating activities 7'393 -647

Cash flow from investing activities 24'002 -26‘097

Cash flow from financing activities -11'755 5‘502

Net investment into tangible and intangible assets 14'956

Free cash flow 22'349 -18‘978

2007/2008

6‘746

-2‘095

-6‘253

-3‘375

3‘371

-18‘331

energy efficiency and reliability

Working capital management

65.1

46.3

49.7

40

45

50

55

60

65

70

Sep 06 Sep 07 Sep 0850

60

70

80

90

100

110

120

NWC A\R Inventory A\P

in C

HFm

in d

ays

Page 14: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

14

energy efficiency and reliability

Reduction of overhead/personnel

142

10693

111

102

87

137

135

130

-

100

200

300

400

Sep 06 Sep 07 Sep 08

Full

time

equi

vale

nts

Marketing and sales Research, development and application

General and administration

-12%-10%

(sales adjusted -9%)

energy efficiency and reliability

Managing finances to create value to our investors

Schaffner maintains the general guideline to pay 25% of net profits as dividends to shareholders

Moderate requirements for capital spending due to mostly manual labor in manufacturing

The cash balance und operating cash flows will cover refinancing in the event that the convertible bond is not converted

In case of conversion of our convertible bond, effective measures are anticipated to avoid EPS dilution

Page 15: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

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energy efficiency and reliabilityenergy efficiency and reliability

The Schaffner Group

Summary

energy efficiency and reliability

Perspectives for fiscal 2008/2009

Schaffner is much more robust than in the past to withstand a downturn

Sustained growth in wind energy and traction (railway rolling stock)

Infrastructure investments (i.e. China) are leading to double-digit growth in the region even when western economies are in recession

Photovoltaic market to be slow until spring 2009 before continuing growth

Some end markets are in recession: machine tools, automotive

With new products and competitive advantages, Schaffner can takemarket share

Conclusion: No reliable forecast possible before spring 2009, but Schaffner is expected to perform better than the market in general

Page 16: Schaffner Holding AG / Corporate presentation / Fiscal …...2 energy efficiency and reliability The Schaffner Group – Corporate presentation fiscal 2007/2008 Highlights Solutions

16

energy efficiency and reliability

Summary – The Schaffner investment case

Market focus on renewable energy and energy efficiency, as well as strong presence in China and Southeast Asia are driving growth

Schaffner is robust and determined to successfully continue the present strategy

Strategic realignment, market success, and operational excellenceprograms lead to substantial improvements of financial result

energy efficiency and reliability

Investor relations contact

Alexander HagemannChief Executive [email protected] +41 32 681 66 06

Kurt LedermannChief Financial [email protected] +41 32 681 66 08