SchaffnerGroup Corporate presentation Fiscal year...©Schaffner Group2012 The SchaffnerGroup Corporate presentation Fiscal year 2011/12 1 ©Schaffner Group2012 The Schaffner Group

©Schaffner Group 2012

The Schaffner Group Corporate presentationFiscal year 2011/12

1


The Schaffner Group

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 September 30, 2012. 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.

2


The Schaffner Group

Corporate presentation fiscal year 2011/12

Daniel Hirschi

Alexander Hagemann

Kurt Ledermann

Chairman of the Board

Chief Executive Officer

Chief Financial Officer

3


Daniel Hirschi | Chairman of the Board

Fiscal year 2011/12

4


The Schaffner Group

Highlights 2011/12

• Challenging economic environment

• Strong management action to secure acceptable EBIT margin in H2

• Focus on innovation

5


Alexander Hagemann | Chief Executive Officer

Solid business in a difficult environment

6


The Schaffner Group

Agenda

• Solid business in a difficult environment

• Financial highlights

• Conclusion

• Q&A

Alexander Hagemann

Kurt Ledermann

Alexander Hagemann

7


The Schaffner Group

Highlights 2011/12

• Weak H1 sales recovered in H2, resulting in ‐3.1% full year growth

European industrial customers in cyclical low

Shift of PV market from Europe to Asia

Contribution of Schaffner MTC Transformers

• EBIT margin on 4.1% (7.0%) with strong recovery in H2 to 6.1%

Negative product mix (Europe weak, Asia stable)

Factory underutilization (i.e. H1)Cost reduction program implemented

• Schaffner MTC integration successfully completed

• Cautiously positive outlook for FY 2012/13

8


The Schaffner Group

Leading component supplier to the power electronics industry

“Schaffner provides users globally with solutions that enable the efficient and reliable operation of electrical and electronic equipment, applying leading know‐how in electromagnetics and power electronics.”

9


The Schaffner Group

Solutions from Schaffner eliminate distortions of electrical power

10


The Schaffner Group

Unchanged growth prospects in strategic markets

Motor drives New energy efficiency standardsby many governments

11

Photovoltaics• Utility‐scale projects in USA, China, Middle East

• Japan moving to renewables Wind power • Repowering of existing installations

• Off‐shore developments

TrainsContinued investment in China, Europe, USA, RussiaElectromobilityEuropean OEM launch new car models with hybrid and electric propulsion


The Schaffner Group

Growth in Automotive compensates for weakness in Rail Technology

• Strong growth of Automotive

• Sharp drop of railway equipment demand in China• Photovoltaic inverter demand moved to Asia• Weak industrial electronics market in Europe

23%

15%

9%14%

16%

13%

8% 2%

Markets in %

12

Strategic markets: 61% (65%)

Energy‐efficient drive systems

Renewable energy

Rail technology

Automotive electronics

Other core markets: 37% (33%)

Power supply systems for electronic devices Machine tools and robotics

Electrical infrastructure

Other markets: 2% (2%)

Other

FY 2011/12


The Schaffner Group

Weak economy drives European share of Group sales below 50%

17% 18%

27%

33%35% 35%

0%

10%

20%

30%

40%

FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12

Share of Asia‐Pacific sales (in %)

13

47%

35%

18%

Sales by regions (in %)

Europe

Asia‐Pacific

Americas

FY 2011/12

• Cyclical low of industrial electronics market in Europe• Asia‐Pacific stable after shift of PV demand• Growth of North America share after MTC integration


The Schaffner Group

Schaffner´s Divisions: Global leaders in niche markets

60%26%

14%

Automotive division 14%• Antennas for keyless entry systems• EMC filters for hybrid/electric cars

14

EMC division 60%• EMC filters for all kinds of power electronic systems, from medical devices and machine tools to photovoltaic inverters

• Harmonic filters for power grid stability in large installations

Power Magnetics division 26%• Mission critical components for very high power, high reliability electronics

Divisions


The Schaffner Group

EMC division: Weak European markets weigh on results

• Cyclically low demand from European industrial customers

• Schaffner follows the solar equipment market to Asia

• Program for structural improvement of operating margins

15

71.78

57.1650.25

55.54

0

20

40

60

80

H1 10/11 H2 10/11 H1 11/12 H2 11/12

Net sales (CHFm) Operating result (CHFm)

12.25

7.92

5.497.06

0

2

4

6

8

10

12

14

H1 10/11 H2 10/11 H1 11/12 H2 11/12


The Schaffner Group

Establishing ECOsineTM as leading brand in Power Quality

16

Semiconductor plantSouth Korea

Coast Guard shipGermany

AquariumSingapore

ResortMacau

Office towerHong Kong


The Schaffner Group

Power Magnetics division: Solid turnaround in H2

• Limited recovery of traction market in H2

• Schaffner MTC Transformers fully integrated

• Well positioned in solar inverter market Japan

17

18.38 17.6720.02

26.47

0

5

10

15

20

25

30

H1 10/11 H2 10/11 H1 11/12 H2 11/12


0.37

‐0.7‐0.58

0.29

‐0.8

‐0.6

‐0.4

‐0.2

0

0.2

0.4

0.6

H1 10/11 H2 10/11 H1 11/12 H2 11/12


The Schaffner Group

2007 2008 2009 2010 2011 2012

Creation of a leading supplier with global footprint

18

2006: Acquisition ofJacke Transformatoren2006: Acquisition ofJacke Transformatoren2006: Acquisition ofJacke Transformatoren

2008: Production start Hungary2008: Production start Hungary2008: Production start Hungary

2011: Acquisition ofMTC Transformers2011: Acquisition ofMTC Transformers2011: Acquisition ofMTC Transformers

2007: Production start China2007: Production start China2007: Production start China

2011: Lean factoryChina2011: Lean factoryChina2011: Lean factoryChina


The Schaffner Group

Automotive division: Exceeding expectations

• Demand for keyless entry systems grows fast

• Operating profit breakeven earlier than expected

• Significant projects in electromobility with leading European OEM

19

8.429.2

10.7

13.96

0

2

4

6

8

10

12

14

16

H1 10/11 H2 10/11 H1 11/12 H2 11/12


‐0.15‐0.25

‐0.35

0.91

‐0.6

‐0.4

‐0.2

0

0.2

0.4

0.6

0.8

1

H1 10/11 H2 10/11 H1 11/12 H2 11/12


The Schaffner Group

A strong line‐up of end customers: a valuable stepping stone

20


Kurt Ledermann | Chief Financial Officer

Fiscal year 2011/12

21


The Schaffner Group

Financial highlights

• Net sales CHF 176.9 m (CHF 182.6 m)

• Growth in local currencies ‐4.7%

• Book‐to‐bill 1.02 (0.97)

• EBIT margin on 4.1% (7.0%)

• Net profit CHF 3.9 m (CHF 10.2 m)

• EPS CHF 6.2 (CHF 16.0)

• Improved cash‐to‐cash cycle of 87 days (91 days)

• Positive free cash flow CHF 1.5 m (CHF 9.6 m)

• Sound balance sheet with 43% (30.09.11: 42%) equity ratio

• Proposal to the AGM to pay‐out 33% (28%) or CHF 2.00 (CHF 4.50) per share

22

Fiscal year 2011/12


The Schaffner Group

Bookings and sales94.7

93.8

69.3

63.2

98.3

109

102.3

75.8

89.1

91.2

86.2

96.2

71.9

61.4

84.6

104.3

98.6

84.0

81.0

95.9

0

20

40

60

80

100

120

H1 07/08 H2 07/08 H1 08/09 H2 08/09 H1 09/10 H2 09/10 H1 10/11 H2 10/11 H1 11/12 H2 11/12

Bookings Sales

23

in CHFm

Fiscal year 2011/12


The Schaffner Group

Income statement

24

4.9 4.9 4.9 8.9 8.9 8.9

‐7.1

5.6 5.6 5.6

9.4 9.4 9.4 9.0 9.0 9.0

3.8

‐2.1

1.4 5.85.8

H1 08/09 H2 08/09 H1 09/10 H2 09/10 H1 10/11 H2 10/11H2 07/08H1 07/08 H1 11/12 H2 11/12

in CHFm

EBIT Gross marginEBIT margin

EBIT margin FY 08/09 EBIT margin FY 09/10 EBIT margin FY 10/11EBIT margin FY 07/08 EBIT margin FY 11/127.6% 4.1%7.9%‐6.9% 7.0%

‐9.9%

‐3.4%

6.6%9.0% 9.1%

4.5%

9.3%5.8%

1.7%

6.1%

22.5%

30.4% 31.4% 31.4% 31.4% 31.0%30.2%29.3% 28.1% 27.6%

Fiscal year 2011/12


The Schaffner Group

Cash flow

25

Fiscal year 2011/12

28

24

20

16

12

8

4

0

in CHFm

14.214.2

Cash 1.10.11

3.93.9

Netprofit

6.76.7

Depr. &Amortisation

‐ 0.8

ChangeProvisions

‐ 3.9‐ 3.9

Change in Net Working

Capital

‐ 1.4‐ 1.4

Others

‐ 3.4‐ 3.4

Capex

‐5.1‐5.1

Financing

10.310.3

Cash 30.9.12


The Schaffner Group

Financial result

in CHFm

Interest expenses net ‐1.4

Currency gain & loss ‐0.5

Other financial expenses ‐0.3

Financial result ‐2.2

26

Fiscal year 2011/12


Tax

in CHFm

Earnings before taxes 5.0

‐ Applicable tax rate 21%

Expected tax ‐1.1

Income taxes as per income statement ‐1.1

27

Fiscal year 2011/12


The Schaffner Group

Proposal for the appropriation of retained earnings

The Schaffner Board of Directors proposes to the AGM a distribution of CHF 2.00 per share (entitled to dividends) out of the reserve for additional paid in capital.

28

Fiscal year 2011/12

Proposal of Board of Directors in CHFm

Share capital 20.7

Legal reserve 4.1

Reserve for treasury shares 1.5

Reserve for additional paid in capital 44.7

Retained earnings 12.8

Net profit of FY 2011/12 1.7

Sharehoders Equity Schaffner Holding 85.5


Alexander Hagemann | Chief Executive Officer

Outlook & Conclusion

29


The Schaffner Group

Conclusion & Outlook

• Solid recovery in H2 after a difficult H1

• EMC division implementing a program for structural EBIT improvement

• Schaffner MTC Transformers successfully integrated

• Automotive division exceeding expectations

Outlook

• All divisions have started the new FY on a positive note

• Economic environment stays challenging

• Expect improvement of net sales and EBIT YoY and especially H1 over H1

30


The Schaffner Group

Schaffner Group mid‐term targets

• Organic growth rate exceeding 8% annually• Focused acquisitions in Divisions EMC and Automotive

Targeted operating margins (EBIT):

EMC division 16% ‐ 20%

Power Magnetics division 8% ‐ 10%

Automotive division 8% ‐ 10%

Schaffner Group 9% ‐ 12% (incl. 3% Group Service Cost)

Dividend pay‐out ratio 25% ‐ 35% of Net Profits

Equity ratio 40% ‐ 50%

Target for FY 2014/2015:

Net sales CHF 250 – 280 million

Operating margin (EBIT) 9% ‐ 12%

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The Schaffner Group Corporate presentationFiscal year 2011/12

32

Documents

SchaffnerGroup Corporate presentation Fiscal year...©Schaffner Group2012 The SchaffnerGroup Corporate presentation Fiscal year 2011/12 1 ©Schaffner Group2012 The Schaffner Group