The Schaffner GroupCorporate presentationFiscal year 2009/10

Caution regarding forward-looking statementsThis 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, 2010 Report. 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.

The Schaffner GroupCorporate presentationFiscal year 2009/10

Chairman of the Board of Directors

Chief Executive Officer

Chief Financial Officer

Daniel Hirschi

Alexander Hagemann

Kurt Ledermann

Highlights 2009/10

Sales CHF 188.9 m (CHF 133.4 m)Book-to-bill 1.10 (0.99)EBIT margin on 7.9 % (-6.9%)Net profit CHF 12.0 m (CHF -11.9 m)EPS CHF 18.9 (CHF -18.0)Proposal to the AGM to pay-out CHF 4.50 per share

The Schaffner GroupCorporate presentation

Agenda

Strategic growth markets and Asiadrive Schaffner in FY 2009/10

Financial highlights FY 2009/10

Outlook

Q&A

Coffee break

Alexander Hagemann, CEO

Kurt Ledermann, CFO

Alexander Hagemann, CEO

Highlights 2009/10

Above pre-crisis results, not just a turnaroundStrategy implementation delivers results

- Greentech- Asia- Innovation- Operational Excellence

Generate value for shareholders- EPS of CHF 18.68 (diluted)- Propose a payout of CHF 4.50 per share

Positive outlook in a more normal environment- High single digit percentage growth of net sales (in local currencies)- Continued improvement of operating margins

The Schaffner GroupSolutions for efficient and reliable power

Making power electronics work

Power electronic devices convert electrical energy- Direct current (DC) to alternate current (AC), e.g. UPS, PV- AC to AC with different frequency, e.g. motor drives, wind turbines

Components from Schaffner guarantee the safe and reliable operation of power electronic systems

- Filtering of harmful electrical noise- Increasing the stability of electric power grids- Ensuring compliance with standards and regulations- Increasing lifetime of electrical machines

Schaffner Schaffner SchaffnerPower Electronics

Focus on greentech applications for sustained growth

Motor drives: Saving 30% to 70% of electrical energy consumption

Photovoltaics:Getting ready for prime time after productivity gains, economies of scale

Wind power:Most competitive renewable energy

Trains: The most sustainable answer to increased mobility demands for people and goods

Electromobility: Carmakers start mass production of plug-in hybrid and electric cars in 2011

The Schaffner GroupLeadership in growing markets

Strategic markets drive growth

Leadership in mature markets provides diversified risk profileElectromobility is the next growth driver from FY 2011/12 onwards

Motor drivesRenewable energyTraction

Electronic devices & power suppliesMachine tools & roboticsTelecom equipment

Automotive electronics Other

Strategic markets: 54% (44%)

Historic growth markets: 34% (50%)

Other markets: 12% (6%)

Share of FY 2009/10 net sales (in brackets: PY)

18%

19%

17%

15%

13%

6%

9%3%

71% sales growth in Asia-Pacific

Accelerated growth strategy in APAC delivers resultsEuropean markets started to recover in Q2 (29% sales growth)Market share gains in North America (53% sales growth)

Share of Asia sales (in %)Sales by regions (in %)

Asia Americas Europe

33%

7%60%

0%

10%

20%

30%

FY05/06

FY06/07

FY07/08

FY08/09

FY09/10

20%

17% 18%

27%

33%

2010: Completion of realignment and accelerated growth

Consolidation of European EMC manufacturing in Hungary completed in 01/2010Up-front investments into Power Quality growth strategy started to deliver financial returnsNew product line of harmonic filters contributed 5% to Group sales (FY 2007/08: 0)Mastered multiple challenges related to growth:

- Increased manufacturing output by 81%- Secured material supply during worldwide shortage- Added PQ capacity in Shanghai (China)

2011-2015: Growth strategy

The Schaffner business model allows for sustained double-digit sales growth and operating margins exceeding 10%

Expanded resources in ChinaPole position in electro-mobilityDevelop Schaffner’s talent pool

More output, protected IPR&D collaborationElectromobility

Lean conversionProcess redesign and SAPPQ manufacturing efficiency

The Schaffner GroupA close-up look at business segments

Business segments

Electromagnetic Compatibility (EMC)Power Quality (PQ)Automotive (AM)

EMC PQ AM

Net Sales FY 2008/09 in %Net Sales FY 2009/10 (in%)

59%32%

9%

62%

32%

6%

Electromagnetic Compatibility EMC

EMC: Market share gains confirm leadership position

Expanded world market share by 2% pointsLeadership in growth markets, e.g. photovoltaics and wind turbinesStrong technology base, operating leverage, distribution

1.

Addressed market: ca. CHF 480m (2009: CHF 400m)

Market Share EMC

EMC in FY 2009/10: Partialrecovery and satisfying margins

Cyclical markets (e.g. machine tools) are recoveringHigh demand for photovoltaics (Germany, Italy, China)Restructuring and productivity drive operating margin to 16%

Net Sales Segment Result1

FY08/09

FY 09/10

FY 08/09

FY 09/10

82.3

111.5

0 18.3

CHFm

1) Segment result is based on operating profit before costs for Group functions, other income, restructuring costs and amortization of customer relationships.

Power Quality

Addressed market: ca. CHF 1.4bn (2009: CHF 1.2bn)

6.

Market share Power Quality

Power Quality: Schaffner‘s growth engine

Harmonic filters already contribute 5% to Group salesPartnership with Rockwell Automation and gains at Siemens will lead to further growthContinued market share gains: aim for top 3 positionGrowth requires move to larger facilities in Shanghai (China)

Power Quality in FY 2009/10: Continued growth, contribution to profits

Strongest growth from traction and PV customers in China and from harmonic filters in APACHigh upfront investments and operational improvements start to pay off: 7.7% segment result1 in H2 of FY 2009/10

Net Sales Segment Result1

FY08/09

FY09/10

FY08/09

FY09/10

42.7

60.9

0 3.1

CHFm

1) Segment result is based on operating profit before costs for Group functions, other income, restructuring costs and amortization of customer relationships.

Automotive AM

Automotive: Electromobility becomes reality

Accessible market will surpass EMC market between 2015 and 2020Positioned as leading R&D partner of European car manufacturersSignificant project wins in 2010 will turn into sales in FY 2011/12Design-wins for quick-charge stations in Europe, Japan, China, USA

Automotive in HY1 2009/10:Recovery and new projects

General market recoverySOP of new projects in HY1Electromobility will contribute some revenues in FY2010/11Stable operating profits due to manufacturing efficiencies

Net Sales Segment Result1

FY08/09

FY09/10

FY08/09

FY09/10

8.3

16.6

0.8 1.5

1) Segment result is based on operating profit before costs for Group functions, other income, restructuring costs and amortization of customer relationships.

CHFm

The Schaffner GroupFiscal 2009/10Kurt Ledermann, CFO

Financial highlights

Sales CHF 188.9 m (CHF 133.4 m)Book-to-bill 1.10 (0.99)EBIT margin on 7.9 %, 9% for 2nd Semester 2009/10Net profit CHF 12 m (CHF -11.9 m)EPS CHF 18.9 (CHF -18.0)Improved cash-to-cash cycle of 94 days (115 days)Positive free cash flow CHF 0.7 m (CHF 10.7 m)Net debt CHF 11.8 million (30.09.09: CHF 11.9 m)Solid balance sheet with 44% (30.09.09: 37%) equity ratioFirst time reporting of EMC, Power Quality and Automotive SegmentsLow tax rateProposal to the AGM to pay-out CHF 4.50 per share

Bookings & Sales

94.7 93.8

69.363.2

98.3109.0

86.296.2

71.961.4

84.6

104.3

0

20

40

60

80

100

120

HY1 07/08 HY2 07/08 HY1 08/09 HY2 08/09 HY1 09/10 HY2 09/10

Bookings Sales

CHFm

Income statement

-10

0

30

20

10

40CHFm

EBIT Gross profit Gross margin EBIT margin

HY1 07/08 HY2 07/08 HY1 08/09 HY2 08/09 HY1 09/10

4.9 8.9

-7.1 -2.1

5.6

25.2 29.1

16.2 18.7

26.5

5.8%9.3%

-9.9%-3.4%

6.6%

9.4

32.7

HY2 09/10

29.3% 30.2%

22.5%

30.4% 31.4% 31.4%

9.0%

EBIT margin FY 07/087.6% 7.9%-6.9%

EBIT margin FY 08/09 EBIT margin FY 09/10

EBIT

CHFm

20

5

0

-10

-5

15

10

-9.2

14.6

9.8

4.7 -4.9

15.0

2008/09

volume

margin

restructuring other

2009/10

Cash flow

5

10

15

20

25

30

35

40

45

CHFm

50

55

0

30.6

12.02.1

5.1 -11.9

-6.0

-23.8

8.1

Net profit

Depr., amort. & others

Capex

Refinancing

Change in net working capital

30.09.2009

30.09.2010

Increase inprovisions

Financial result

Interest expenses net -1.1

Currency gain & loss -1.1

Other financial expenses -0.8

Financial result -3.0

CHFm

Tax

Earnings before taxes 12.0- Applicable tax rate 13%

Expected tax -1.6

Effect of unrecognized tax losses 1.0

Change in recognition of tax loss carry forwards 0.7

Others -0.1

Income taxes as per income statement 0.0

CHFm

Proposal for the appropriation of retained earnings

The Schaffner Board of Directors proposes to the AGM a distribution of CHF 4.50 per share (entitled to dividends) out of the reserve for additional paid in capital.This distribution will be exempted as of January 1, 2011 from the Swiss Anticipatory Tax (Verrechnungssteuer)

Share capital 20.7

Legal reserve 0.3

Reserve for treasury shares 0.9

Reserve for additional paid in capital 50.4

Retained earnings 17.2

Net profit of FY 2009/10 1.3

Sharehoders Equity Schaffner Holding 90.7

CHFm

The Schaffner GroupGenerating value for shareholders

Generating value for shareholders

Improved operating margins compared to pre-recession levels10% operating margin shall be reached within 2 yearsValue creation through increased PQ marginsStrategic initiatives for sustained growth are on trackReduced debt and improved operating performance lead to reduction of financing costGeneral dividend guideline: Payout of 25% of net profitsPresent risks from CHF appreciation are mostly mitigated

Outlook

Demand for Schaffner power quality solutions continues to growTraditional EMC markets recover (e.g. machine tools)Automotive business is stable on a high levelAM segment result to decline because of R&D expenses related to electromobilityUncertain outlook for photovoltaic in Germany in 2011 due to reduction of feed-in tariffs We guide towards high single-digit sales growth in local currencies and a further increasing operating margin