The Schaffner Group Corporate presentation fiscal year 2010/11

Transcription

1 The Schaffner Group Corporate presentation fiscal year 2010/11 The Schaffner Group Corporate presentation fiscal year 2010/11 Daniel Hirschi Alexander Hagemann Kurt Ledermann Chairman of the Board Chief Executive Officer Chief Financial Officer 2 1

2 The Schaffner Group Agenda Well positioned for growth through strategic groundwork done Financial highlights Conclusion Q&A Alexander Hagemann Kurt Ledermann Alexander Hagemann 3 The Schaffner Group Highlights 2010/11 Sales CHF m (CHF m) Book to bill 0.97 (1.10) EBIT margin on 7.0 (7.9%) Net profit CHF 10.2 m (CHF 12.0 m) EPS CHF (CHF 18.87) Proposal to the AGM to pay out CHF 4.50 per share 4 2

3 Alexander Hagemann Well positioned for growth through strategic groundwork done 5 The Schaffner Group Highlights of FY 2010/11 Organic growth of 9% in local currencies despite economic headwind in HY2 Some impact from currencies, but not catastrophic Suspension of China rail projects Weakness of European PV market Harmonic Filter sales doubled Significant Automotive projects in SOP Acquisition of dry type transformer division of MTC Transformers, Inc. New Shanghai factory Introduction of divisional organization 6 3

4 The Schaffner Group One stop shop for EMC and power quality solutions 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 Schaffner Components guarantee safe and reliable operation of power electronics Filtering of harmful electrical noise Increasing the stability of electric power grids Ensuring compliance with standards and regulations Increasing lifetime of electrical machines 7 The Schaffner universe markets of the Schaffner Group 8 8 4

5 Global footprint 9 9 The Schaffner Group Sales to strategic markets continue to grow Automotive identified as strategic market Balanced risk profile Telecom market loses significance Strategic markets: 65% (63%) Energy efficient drive systems Renewable energy Rail technology Automotive electronics Historic growth markets: 33% (34%) Power supply systems for electronic devices Machine tools & robotics Telecommunications Other markets: 2% (3%) Other Markets in % 4%2% 13% 16% 10% 16% 22% 17% 10 5

6 The Schaffner Group Dynamic development in all regions Asia/Pacific sales growth with Harmonic Filters Market share gains in North America Europe suffers from weak PV inverter demand Sales by regions (in %) Share of Asia/Pacific sales (in %) 30% 33% 35% 35% Europe 20% 20% 27% FY 2010/11 57% Americas Asia/Pacific 10% 17% 18% 8% 0% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 11 The Schaffner Group Business segments Electromagnetic Compatibility (EMC) Power Quality (PQ) Automotive (AM) Net sales FY 2010/11 (in%) 10% 33% Net sales FY 2009/10 (in %) 9% 32% AM EMC PQ 57% AM EMC PQ 59% 12 6

7 The Schaffner Group EMC: Leadership in global market Number one supplier in the global EMC market Strong position in growth markets, e.g. photovoltaics and motor drives Strong technology base, operating leverage, distribution Market share EMC Addressed market: approx. CHF 480m (in 2010) The Schaffner Group EMC in FY 2010/11: Operational excellence Growth of 5% (local currencies) despite weakness in European PV, Japan Operational improvements drive operating margin to 18.1% (16.4%) Expanded distributor coverage: DIGIKEY, Pan European contract with ARROW Continued market share gains in North America Net sales (CHFm) Segment results (CHFm) FY 09/10 FY 10/11 0 FY 09/10 FY 10/

8 The Schaffner Group Power Quality: Schaffner s growth engine despite China project delays Objective to become number one or two competitor in 2015 (incl. M&A) with operating margin in high single digit range Schaffner is the first global supplier of power quality solutions Rapid expansion of product and technology portfolio ECOsine TM Harmonic Filters are a big success Margin expansion expected when suspension of China rail projects will be lifted Market share Power Quality Addressed market: approx. CHF 1.4bn (2010) The Schaffner Group Power Quality in FY2010/11: Missing EBIT targets after suspension of China rail projects 13% organic growth (local currencies), mostly from ECOsine TM Harmonic Filter sales Suspension of rail projects in China led to underutilization of China and German factories in HY2, adversely impacting operating results Move to new factory in Shanghai establishes best in class processes Net sales (CHFm) Segment results (CHFm) FY 09/10 FY 10/11 0 FY 09/10 FY 10/

9 The Schaffner Group Power Quality strategy: Setting the benchmark for lean production at new factory in Shanghai All Schaffner China operations were moved to new location in Shanghai Pudong during FY2010/11 First time implementation of lean manufacturing for power magnetics Well positioned for next growth cycle in Chinese rail and solar markets 17 The Schaffner Group Power Quality strategy: Expansion into North America Acquired Dry Type Transformer operations of MTC Transformers, Inc., as of September 1, 2011, for approx. USD 13.5 m 75 employees in Wytheville and Roanoke, VA, strong management CY 2011 stand alone sales of USD 16 m (FC), attractive EBIT margins US manufacturing base to serve Schaffner s customers in the renewable energy, motor drive, traction industries Expanded offering to higher power and medium voltage solutions 18 9

10 The Schaffner Group Automotive: Growth in E mobility and Keyless Entry EMC filter applications for: Converter in hybrid applications. Converter in electric vehicles Motor management and turbo charger Low frequency antenna for initiating tire pressure measuring cycle Tire pressure sensor housing with integrated RF antenna Trunk antenna Doorhandle antenna with touch sensor Immobilizer antenna on keylock housing Keyless entry is becoming a widely accepted feature New customers, and added value strategy for keyless entry lead to sustained growth Tripling of engineering resources to cope with project demands from electro mobility customers E mobility expected to contribute CHF 5 m sales in FY 2011/12 Objective to achieve CHF 40 m sales with Automotive solutions in FY 2014/15 19 The Schaffner Group Automotive in FY2010/11: Investing to establish a new strategic business for Schaffner 20% organic growth, mostly with components for Keyless Entry Stable supply to customers despite natural disasters in Japan and Thailand Segment result impacted as expected by ramp up of engineering and launch costs related to SOP in e mobility Net sales (CHFm) Segment results (CHFm) FY 09/10 FY 10/ FY 09/10 FY 10/

11 Schaffner Strategy 2015 Introduction of Divisional Organization (as of October 1, 2011) Simplified management structure, streamlined Group Executive Board (GL) Allocation of Harmonic Filters from Division Power Quality to EMC because of similar business models Focus of management towards specific strategic objectives Strengthening of middle management during FY2010/11 Board of Directors Chief Executive Officer Alexander Hagemann Chief Financial Officer Kurt Ledermann Division EMC Guido Schlegelmilch Division Power Magnetics Eduard Hadorn Division Automotive Jean-Michel Calleri Chief Operating Officer Ah Bee Goh 21 Kurt Ledermann Fiscal year 2010/

12 Fiscal year 2010/11 Financial highlights Sales CHF m (CHF m) Growth in local currencies 9% Book to bill 0.97 (1.10) EBIT margin on 7.0% (7.9%) Net profit CHF 10.2 m (CHF 12.0 m) EPS CHF 16.0 (CHF 18.9) Stable cash to cash cycle of 91 days (92 days) Strong free cash flow CHF 9.7 m (CHF 0.7 m) Solid balance sheet with 42% ( : 44%) equity ratio Proposal to the AGM to pay out CHF 4.50 per share 23 Fiscal year 2010/11 Bookings & Sales CHFm HY1 07/08 HY2 07/08 HY1 08/09 HY2 08/09 HY1 09/10 HY2 09/10 HY1 10/11 HY2 10/11 Bookings Sales 24 12

13 Fiscal year 2010/11 Currencies short and mid term development 2010/ / % 100% 95% 90% 85% 80% 75% Okt.10 Nov.10 Dez.10 Jan.11 Feb.11 Mrz.11 Apr.11 Mai.11 Jun.11 Jul.11 Aug.11 Sep.11 USD/CHF 9% EUR/CHF 9% 110% 105% 100% 95% 90% Okt.10 Nov.10 Dez.10 Jan.11 Feb.11 Mrz.11 Apr.11 Mai.11 Jun.11 Jul.11 Aug.11 Sep.11 EUR/THB +1% EUR/HUF +5% 110% 2007/ /11 130% 2007/ /11 100% 120% 90% 80% 70% 60% Okt.07 Okt.08 Okt.09 Okt.10 USD/CHF 24% EUR/CHF 27% 110% 100% 90% 80% Okt.07 Okt.08 Okt.09 Okt.10 EUR/THB 7% EUR/HUF +15% 25 Fiscal year 2010/11 Sales & Currencies HY comparison in CHFm HY1 07/08 HY2 07/08 HY1 08/09 HY2 08/09 HY1 09/10 HY2 09/10 HY1 10/11 HY2 10/11 Currency effect Actual FY comparison in CHFm /08 08/09 09/10 10/11 Currency effect Actual 26 13

14 Fiscal year 2010/11 Income statement 29.3% 30.2% in CHFm 22.5% 30.4% 31.4% 31.4% 31.8% 30.7% 5.8% 9.3% 6.6% 9.0% 9.1% 4.5% 3.4% % HY1 07/08 HY2 07/08 7.6% EBIT margin FY 07/08 HY1 08/09 HY2 08/09 HY1 09/10 HY2 09/10 HY1 10/11 HY2 10/11 6.9% 7.9% 7.0% EBIT margin FY 08/09 EBIT margin FY 09/10 EBIT margin FY 10/11 EBIT Gross margin EBIT margin 27 Fiscal year 2010/11 Cash flow in CHFm 28 14

15 Fiscal year 2010/11 Financial result in CHFm Interest expenses net -0.8 Currency gain & loss -1.0 Other financial expenses -0.2 Financial result Fiscal year 2010/11 Tax in CHFm Earnings before taxes Applicable tax rate 17% Expected tax -1.8 Effect of unrecognized tax losses 1.0 Others 0.1 Income taxes as per income statement

16 Fiscal year 2010/11 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. Proposal of Board of Directors in CHFm Share capital 20.7 Legal reserve 4.1 Reserve for treasury shares 1.6 Reserve for additional paid in capital 47.5 Retained earnings 13.9 Net profit of FY 2009/ Sharehoders Equity Schaffner Holding Alexander Hagemann Conclusion 32 16

17 Conclusions Implementing strategy in challenging times Strategic drivers for Schaffner remain highly relevant: Energy efficiency Alternative energy generation Sustainable transport Schaffner has proven in FY2010/11 that it can deliver about 10% annual organic growth (in local currencies) also in a more challenging environment Despite not unaffected, Schaffner has shown resilience against appreciation of CHF Double digit operating margins continue to be a clear objective, to be achieved after current macroeconomic challenges will be overcome A strong balance sheet enables Schaffner to grow organically and by acquisitions Confidence in cash flow generation underlined by proposal of unchanged dividend 33 Conclusions Outlook Customers are cautious, leading to inventory reduction throughout the supply chain However no crisis such as expected (based on book to bill rate of 0.9 in HY2 of FY2010/11 and recent order trends) Recovery of China rail market and PV inverter market expected around the middle of Schaffner FY2011/12 Given the macroeconomic and global political uncertainties, it is not possible to forecast the Group s results for FY2011/12 at this time Medium term targets of an operating margin (return on sales) of 10% and sales of more than CHF 200 m remain unchanged 34 17

18 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, 2011 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