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Investora 2016 The Schaffner Group We shape electrical power We shape electrical power… Key figures (based on FY 2014/15) | Net sales CHF 201.8 million | EBIT margin: 4.4% | Net profit: CHF 6.3 million | Market cap as of 14.09.2016: CHF 153 million | 3,143 employees worldwide Electro Magnetic Compatibility filters (EMC) – No 1 in EMC filters Power Magnetics (PM) – No 3 in transformers/inductors Automotive (AM) – No 2 in keyless entry antennas Net sales growth above GDP USA 23% Europe 41% Asia 36% Production Sites 100% 150% 200% FY 14/15 FX Reported Divisions with leading market positions Balanced sales and global footprint FY 2014/15

Investora 2016

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Page 1: Investora 2016

Investora 2016

The Schaffner GroupWe shape electrical power

We shape electrical power…

Key figures (based on FY 2014/15)

| Net sales CHF 201.8 million

| EBIT margin: 4.4%

| Net profit: CHF 6.3 million

| Market cap as of 14.09.2016: CHF 153 million

| 3,143 employees worldwide

Electro Magnetic Compatibility filters (EMC)– No 1 in EMC filters

Power Magnetics (PM)– No 3 in transformers/inductors

Automotive (AM)– No 2 in keyless entry antennas

Net sales growth above GDP

USA 23% Europe 41% Asia 36% Production Sites

100%

150%

200%

FY 14/15 FX Reported

Divisions with leading market positions Balanced sales and global footprintFY 2014/15

Page 2: Investora 2016

… with three divisions that are amongst the leaders in their niche markets

Electro Magnetic Compatibility Power Magnetics Automotive

No. 1 in EMC filters 1

Sales: CHF 95.3 million 2

EBITA: CHF 8.9 million

Market size EMC: CHF 300 million

1) No. 2: TDK (Japan/Germany)

2) Total sales of EMC division incl. PQ

24

Marketsharein %

No. 3 in transformers/inductors 2

Sales: CHF 63.6 million

EBITA: CHF 0.9 million

Market size: CHF 1.8 billion

2) No. 1: Hammond Power Solutions (Canada)

4

Marketsharein %

No. 2 in keyless entry antennas 3

Sales: CHF 42.8 million

EBITA: CHF 6.2 million

Market size: CHF 150 million

3) No. 1: Sumida Corporation (Japan)

25

Marketsharein %

All financials: based on FY 2014/15. Market sizes and shares are Schaffner estimates for the main product lines of the divisions

Business model

•Products•Solutions•Services

Global footprint

Competencecenter

Unique positionin

power electronics

• Innovations• Global talents• Research network

• USA• Europe• Asia-Pacific

• EMC• Power Quality• Power Magnetics• Automotive

Client and marketneeds

Page 3: Investora 2016

Solutions from Schaffner eliminate distortions of electrical power …

… wherever power is converted by electronics

Buildings

Renewable energy

Rail transportation

Automotive

Health care

LED

Oil & Gas

Water treatment

Smart grids

Marine

Robotics

Machinery

Page 4: Investora 2016

Markets of the Schaffner Group

SLIDE 7

Complementary offerings for growth markets

EMC: Best filtering for power electronics today and tomorrow

EMC filter componentLow power EMC filterHigh power EMC filter

Middle frequency filterMotor protection filter

Most complete portfolio of EMC filter solutions

Regen LCL filter

Page 5: Investora 2016

Power Quality: Driving Growth with Systems and Services

Active filters Solutions Passive filters

Power Magnetics: Leading solutions for mission-critical applications

| Water-cooled inductor formotor drives

| Filter inductor for heavy-duty freight locomotives

| Transformer/inductorcombination for PV inverters

Application examples

Page 6: Investora 2016

Automotive: Serving high growth niche markets

Low frequency antennas (LFA) for keyless entry systems

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

SLIDE 11

From IFRS to Swiss GAAP FER

| With retroactive effect as of the beginning of FY 2015/16 on 1 October 2015

| Goodwill and intangible assets from acquisitions will be offset against shareholders’ equity

| Pension obligations will be revalued

| Last trading on International Reporting Standard on 30 September 2016

| First trading on Swiss Reporting Standard on 3 October 2016

H1 2015/16 | in CHF million FER IFRS

Net sales 92.6 92.6

EBIT 1.7 0.5

Net profit 0.5 -0.3

31.3.2016 | in CHF million

Intangible assets 1.7 20.7

Equity ratio 39% 41%

Page 7: Investora 2016

Innovation and portfolio diversification lead to sustainable growth

Capital employed by division

Gross marginNet sales

Net sales growth above GDP

0

20

40

60

80

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

AM

PM

EMC

050

100150200250

AM

PM

EMC

0%

10%

20%

30%

40%

50%

2009/102010/112011/122012/132013/142014/15

Total

EMC

PM

AM

100%

150%

200%

FY 14/15 FX Reported

Schaffners value proposition

SLIDE 14

Division EMC

| Global market leader| Growth drivers: increase market

share, new niches| Customer benefit: increased reliability

and energy efficiency of system

Division Power Magnetics

| Global supplier in a highly fragmented market

| Growth driver: new technologies | Customer benefit: increased reliability

and energy efficiency of system

Business Unit Power Quality

| Start-up| Growth drivers: use of power electronics| Customer benefit: increased reliability and

energy efficiency of system

Division Automotive

| A leading global supplier in a niche market| Growth drivers: strong market growth,

opportunities in electro vehicles | Customer benefit: recognized global supplier

> CHF180 m

Page 8: Investora 2016

Group financial targets

| Net sales growth, organic > 5%

| EBIT > 8%

| ROCE > WACC

| Leverage ratio target: Net debt/EBITDA < 3

| Long term equity ratio > 40%

| Dividend policy: pay-out ratio 25-35% of net income

Leader in technological and application know-how

Most complete solution portfolio

Most global amongst all competitors

Excellent growth opportunities in expanding market

Attractive capital returns

We shape electrical power – and create value

SLIDE 16

Page 9: Investora 2016

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Investora 2016

The Schaffner GroupWe shape electrical power