Investor Presentation Schaltbau Holding AG May 2018 THE SMART EVOLUTION OF MOBILITY Picture credits: istockphoto LP
Executive Board Investor Presentation May 2018 2 Bringing Schaltbau back on track experienced management team Our common objectives Dr Albrecht Köhler Thomas Dippold Dr Martin Kleinschmitt Return to profit CEO (since 19 May 2018) CFO (since Jan 2017) CRO (since Aug 2017) Stick to stringent cost management Freelance interim CEO / COO (2016-18) Deputy CEO GAZ Grp. (2014-16) Managing Director Knorr Bremse rolling stock bus. unit (2000-10) Leading general management and operations roles at Dt. / Daimler Benz Aerospace (1989-1999) CFO Faber-Castell AG (2014-16) CFO Semikron International (2008-14) Head of Controlling SCHOTT AG (2002-08) Partner at Noerr LLP and CEO Noerr Consulting AG Vice Chairman of the Board SAF- HOLLAND S.A. Interim management of various SMEs as CFO/CRO (since 2001) CFO Herlitz AG (1998-2000) Secure financing capabilities
Business and Market Overview
End markets Selected products Segments The Schaltbau Group at a glance Investor Presentation May 2018 4 Business overview Mobile Transportation Technology Components Stationary Transportation Technology ~52% (1) ~25% (1) ~23% (1) (2) Disposed Doors and boarding systems for trains, stations, buses and commercial vehicles Interior fittings, information, surveillance and communication systems, master controllers, driver desk equipment and sanitary systems for rolling stock High- and low-voltage components for rolling stock, electric vehicles and other applications Master controllers and driver desk equipment Platform screen doors, point heating systems, level crossing systems, shunting equipment, signal technology and tunnel security lighting Industrial brakes for container cranes and wind turbines Automotive Rolling Stock Industry Infrastructure (1) Source: Company information, segmental split based on FY 2017 financials (2) Put up for sale in November 2017
Comments Key products Subsidiaries Key operating entities Investor Presentation May 2018 5 Snapshot of Schaltbau Connect Contact Control Group c. 25% of Group sales (1) Connectors Switches Contactors Master controller & driver desk Brake control High share of international sales, broad customer distribution Performed very well in 2017 and Q1 2018, high order intake with strong and sustainable margins Highly efficient operations Has developed from a pure component supplier to an application specialist providing components, assembly and service Transfer of existing know how from rail applications into new markets such as switchgear for renewable energy power plants (1) FY 2018 forecast, pre consolidation
Comments Key products Subsidiaries Key operating entities Investor Presentation May 2018 6 Snapshot on Schaltbau Bode Group c. 50% of Group sales (1) Rail door systems Interiors Established #3 player in an oligopolistic market, strong train door systems quality track record Performance improved significantly in Q4 2017 and Q1 2018, strong order intake Largely inefficient operations with restructuring roadmap established Service organisation with high flexibility Has expanded customer range by leveraging train door system experience into bus and automotive applications such as Deutsche Post DHL s e- mobility vehicle StreetScooter (1) FY 2018 forecast, pre consolidation
Comments Key products Subsidiaries Key operating entities Investor Presentation May 2018 7 Snapshot of Pintsch Bamag Group c. 17% of Group sales (1) Level crossing Marshalling yards Axle counting Point heating Established top 3 player in various oligopolistic submarkets, some of which are quite small though (e. g., conveyor technology for hump yards, platform screen doors); also, currently Pintsch Bamag s solutions lack technological leadership, with significant investments necessary to maintain long-term competitiveness Performance improved significantly in Q4 2017 and Q1 2018, order intake shows volatility Partially inefficient operations with restructuring roadmap established, improvement of terms & conditions with large customers ongoing Rail infrastructure market offers significant growth potential and major innovation opportunities related to digitalisation and interconnection of field elements and systems (e. g., point diagnostics) (1) FY 2018 forecast, pre consolidation
Market and competitive environment Investor Presentation May 2018 8 Megatrends drive sustainable growth in global rail markets MobileTransportation Technology / Components Vehicles Stationary Transportation Technology Infrastructure & Rail Control Services Megatrends Digitisation / Automation Urbanisation All common railway vehicles Railway crossings, rail control and signal technology for tracks, trains and control centers Maintenance incl. spare parts and renovation Emission reductions Connectivity Electrification / e-mobility Market growth (1) : ~1.9% Market size: ~ 60bn Market growth (1) : ~2.8% Market size: ~ 52bn Market growth (1) : ~2.8% Market size: ~ 73bn Safety Regional expected market growth (1)(2) Western Europe: ~3.0% Asia / Pacific: ~2.6% NAFTA: ~2.2% CIS: ~1.1% Eastern Europe: ~3.1% Africa / ME: ~2.3% Latin America: ~1.8% Globalisation / China Regulation and Liberalisation Source: Unife, Roland Berger (1) Average annual market growth from 2013-15 until 2019-21 over six years (services for rail control not considered) (2) Vehicles, rail control and services; infrastructure and services for rail control not considered
Market and competitive environment Investor Presentation May 2018 9 Railway market with oligopolistic supplier structure in many segments Overall rolling stock OEMs in the market Selected suppliers in the Schaltbau railway market 1. 2. / (3) 14% 3. 158bn (1) 5% 4% 4% 3% Other OEM (2) 4. 5. 6. 7. Other 70% 8. 9. Source: Company information (1) Revenue 2015; (2) Incl. Hitachi Rail, Stadler, CAF, Pesa. ABB and Thales Transport not considered (mainly in infrastructure or control command and signalling technology); (3) Pre Wabtec takeover 10.
Striving for sustainable and profitable growth Management Agenda 2017 & Q1 2018 fulfilled
Key developments Investor Presentation May 2018 11 Management agenda 2017 & Q1 2018 fulfilled: higher financial flexibility for ongoing restructuring activities and organic growth in core business areas Stabilisation of financial situation Major cost reduction programmes initiated Strengthening of future competitiveness Stabilisation of operative business Divestiture of non-core industrial brakes business (Pintsch Bubenzer) effective 1 March 2018 Two successful capital increases in May 2017 and February 2018 Reduction of short- and midterm financial debt Optimisation of production and logistic processes Strict focus on reduction of personnel cost and material expenses by improving purchasing conditions Reduction of complexity of Group organisation, improved steering and limitation of risks Restructuring agreement in Stationary Transport Technology for 2018 and 2019, total savings of 4 million Investments mainly into mobility/logistics applications and further rolling stock development Digitisation: product development to be increasingly aligned towards customers needs Extended business model: services for the entire lifecycle of rolling stock and commercial vehicles Focus on local presence in international markets Strong order intake, revenue and EBIT development since Q3 2017 Orders at hand at the end of Q1 2018 near record level achieved at year-end 2017
Financials FY 2017 Investor Presentation May 2018 12 Sales and earnings targets 2017 (as adjusted over time) achieved Sales +1.5% vs. 2016 516.5 million Order intake +7.8% vs. 2016 594.0 million EBIT 2.4 million before one-off effects One-off effect of revaluation of Schaltbau Sepsa: Goodwill impairment Schaltbau Pintsch Bubenzer: -23.0 million reported -24.2 million -1.1 million
Financials FY 2017 Investor Presentation May 2018 13 Strong order intake in FY 2017 mainly due to contribution from Mobile Transportation Technology Order intake grows by 7.8% Mainly driven by Mobile Transportation Technology, also impacted by a full-year contribution from Schaltbau Sepsa (consolidated since 30 September 2016) and relocation of the Refurbishment business (was part of Stationary Transportation Technology before) Very positive order intake development in Components Significant decrease of order intake in Stationary Transportation Technology due to lower order placements in Germany as well as a more conservative approach on international projects Order book increases by 18.3% to 508.3 million (end of 2016: 429.8 million) 800 700 600 500 400 300 200 100 0 Order intake in million 594 551 146 130 114 158 333 263 2016 1 2017 2 Mobile Transportation Technology Stationary Transportation Technology Components
Financials FY 2017 Investor Presentation May 2018 14 FY 2017 sales increase in line with management expectations Sales up by 1.5% Significant increase in second half of 2017 mainly due to completion of major projects Slight decrease in comparable sales of 4% mainly driven by strong decline in industrial brakes volume (Pintsch Bubenzer) and a lower volume in level crossing technology Full-year contribution of Schaltbau Sepsa offsets organic decline 700 600 500 400 300 Sales in million 509 517 138 131 149 121 23 35 Sales 2017 by market in % Germany Germany 200 100 222 265 42 Rest of Europe Rest of Europe Rest of World Rest of World 0 2016 1 2017 2 Mobile Transportation Technology Stationary Transportation Technology Components
Financials FY 2017 Investor Presentation May 2018 15 Extraordinary Schaltbau Sepsa revaluation impacts Group EBIT in 2017 EBITDA improved year-on-year Reported EBIT at -23.0 million, EBIT margin at -4.4% One-off effect of revaluation of Schaltbau Sepsa amounting to -24.2 million Goodwill impairment Schaltbau Pintsch Bubenzer amounting to -1.1 million Additional expenses for restructuring activities of around 8 million 25 20 15 10 5 0-5 -10-15 -20-25 EBIT and EBITDA in million 20.1 16.4 +3.9% +3.2% -2.8% 2016-4.4% 2017-14.5 EBIT EBITDA -23.0
Financials FY 2017 Investor Presentation May 2018 16 Net result 2017 impacted by higher financing costs Strong decline in Schaltbau Group s net profit mainly driven by: Decreased EBIT Higher interest expenses due to higher interest margins as well as higher drawing of existing credit lines 20,0 10,0 0,0-2.61 per share Net profit in million -8.04 per share One-time effects related to refinancing activities -10,0-20,0-12.0-15.8-30,0-40,0-50,0-60,0-49.6 2016 2017-51.7 Group net profit Schaltbau Shareholders
Financials Q1 2018 Investor Presentation May 2018 17 Q1 2018 order intake remains at a high level Reduction in order intake by 12.6%, 21.6 million Order intake in million Strong performance in Mobile Transportation Technology; Q1 2017 order intake was significantly impacted by extraordinary order intakes at Schaltbau Bode Order intake development in Components and Stationary Transportation Technology remains solid Order book at a high level of 508.0 million (end of 2017: 508.3 million) 200 150 100 171 41 27 149 40 28 50 103 81 0 Q1 2017 1 Q1 20182 Mobile Transportation Technology Stationary Transportation Technology Components
Financials Q1 2018 Investor Presentation May 2018 18 Sales growth in Q1 2018 driven by increases in Mobile Transportation Technology and Components Sales grow by 12.3% vs. Q1 2017, an increase of 13.6 million in absolute terms Significant volume increase in Mobile Transportation Technology (in particular at Schaltbau Bode) Strong sales volume development in Components Sales in Stationary Transportation below prior year, sales like-for-like slightly below Q1 2017 46.4% of total sales in Q1 2018 were generated in European countries other than Germany, and 20.1% outside of Europe 200 150 100 50 Sales in million 124 111 110 90 37 29 37 23 29 17 9 10 59 51 71 64 0 Q1 2017 Q1 2017 Q1 2018 Q1 2018 like-for-like* like-for-like* Mobile Transportation Technology Stationary Transportation Technology Components * Excluding Pintsch Bubenzer and Sepsa
Financials Q1 2018 Investor Presentation May 2018 19 Significant EBIT improvement in Q1 2018 EBIT increases by 10.5 million to 2.0 million; EBIT margin at 1.6% Primarily driven by higher sales volume vs Q1 2017 and a positive impact from favorable product mix in Components Comparable EBIT up by 6.6 million 10 5 0 EBIT margin -7.7% EBIT margin like-for-like* -5.2% EBIT in million EBIT margin 1.6% 2.0 EBIT margin like-for-like* 1.7% 1.9 Earnings per share at -0.46 (Q1 2017: -2.00) -5-4.7-10 -8.5-15 Q1 2017 Q1 2018 EBIT EBIT like-for-like * Excluding Pintsch Bubenzer and Sepsa
Priorities until 2020 Investor Presentation May 2018 20 Restructuring roadmap Schaltbau: Major milestones successfully achieved further road to go 2017 2018 Create financial headroom 2018 2019 2019 2020 Achieve satisfactory debt level Ensure profitability on market level Stabilize operational performance Selective investments Step up investments in market opportunities and digital business models EXPLOIT GROWTH OPPORTUNITIES REDUCE COMPLEXITY REDUCE COSTS REDUCE DEBT 2017 2018 2019 2020
Restructuring in detail Investor Presentation May 2018 21 Comprehensive restructuring measures initiated Operational restructuring measures Subsidiary Selected measures Current status Group Group-wide procurement optimization Holding Mobile Transportation Technology Components Stationary Transportation Technology Personnel adjustments, restructuring of central functions (e.g. Controlling) Expansion of after sales business, new business with composites for interiors Purchase price reduction & quality management Restructuring of production concept & production control ( state-of-the-art production ) General purchase price reductions Efficiency increase / reduction of personnel cost ratio Raising value for the customer through expanded module offering Execution of order for >300 trains (Italian prototype) Expansion of services & after-sales business Planned expansion of refurbishment & services business Improvement of terms and conditions with large customers Efficiency increase in production through lean management Relocation of production site Sprockhövel to Dinslaken (end of 2019)
Strategic Agenda
Strategic agenda Investor Presentation May 2018 23 Goals of Schaltbau Group 1 Maintain a leading market position 2 3 Focus on profitable sustainable business activities Implement restructuring concept to increase profitability Sustainable and profitable growth 4 Create new business opportunities via collaboration between product areas and business segments 5 Increase customer focus and strengthen client relationships
Strategic agenda Investor Presentation May 2018 24 Main pillars of Schaltbau Group strategic agenda Sustainable and profitable growth Technical innovation, quality and system integration Operational excellence (performance culture) Comprehensive market and customer handling (customer focus) Systematic lifecycle business models incl. After Sales / Service Internationalisation Think global / Act local Solid financing to enable strategic and operational flexibility Corporate culture und governance / Qualified employees / Ready-for-change organisational culture
OEMs Strategic agenda Investor Presentation May 2018 25 Strategic positioning going forward 1 Regions 2 Products 3 Customers 4 Operations DACH and rest of Europe as core markets (c. 70% of revenue) Representation in China via several JVs and customer relations of German subsidiaries (c. 17% of revenue) Increasing importance of the US Regional production and R&D activities to react to market changes and meet increasing local content requirements Interconnected (digital) products which communicate with each other Common communication standard for all solutions as prerequisite towards the development of smart products Leverage product know-how / applications to new business areas (e.g. intelligent door systems for automotive division) Expansion of business with railway and automotive OEMs in Mobile Transportation Technology Maintain strong relationship with Deutsche Bahn in infrastructure business Customer relations exist on various levels as well as with different companies of the Group coordination / development under Key Account Management Continuous efficiency improvements along the entire value chain Targeted production optimisation through implementation of lean production approaches Further efficiency advantages through consolidation of productions Europe as core market with additional bases in China and USA Supplier with digital product portfolio Focus on railway and automotive industry Achieve operational excellence throughout the value chain 5 Management principles Decentralised entities with enhanced management/leadership structure (SMC) Greater transparency, more standardised coordination throughout the Group
Guidance Investor Presentation May 2018 26 Sales guidance 2018 Sales Guidance for 2018 with a range of 480-500 million (without Sepsa and taking into account sale of Pintsch Bubenzer in February 2018) in million 517 480-500 million Organic Growth of around 40 60 million expected for FY 2018: -41 490 Strong growth in Mobile Transportation driven by Schaltbau Bode Group -37 52 Positive sales outlook for Component business Sales FY 2017 Pintsch Bubenzer* Sepsa** Organic growth Sales guidance FY 2018 * Adjusted by FY 2017 and 01-02/2018 sales ** Adjusted by FY 2017 sales
Guidance Investor Presentation May 2018 27 Targets 2018 Solid order book from stabilised order intake in 2017 serves as stable basis for profitable growth Initial positive effects from restructuring measures implemented in the financial year 2017 expected to contribute to an improvement in EBIT margin: Increase in profitability through optimized production processes and improved purchase conditions should lead to a decline in material and personnel expenses Non-operating special effects from extraordinary impairments arising out of restructuring measures or disposal of subsidiaries will possibly continue to occur in 2018 Outlook (in million) Guidance FY 2018 * 2017 Order intake 500-520 ** 594.0 Sales 480-500 ** 516.5 Mobile Transportation Technology Stationary Transportation Technology Significant improvement 265.3 Significant decline 120.5 Components Slight increase 130.7 EBIT margin Around 3% ** 0.5%*** * Compared to FY 2017 ** Excluding Pintsch Bubenzer and Sepsa *** Excluding extraordinary items
Investor Presentation May 2018 28 Schaltbau Vision 2020 Disposal of non-core business Operational excellence throughout the organization 2020 Overall increased share of service and international revenues State-of-the-art product and service offering in terms of quality and innovation Our clear goal is to focus Schaltbau Group on its strategic core competencies and to consistently increase profitability. That is why we intend to dispose non-core business areas as well as those which are not sustainably profitable. These alignments should result in reduced revenues and simultaneously increased profitability until 2020, enabling Schaltbau to return to historical profitability levels and future growth.
Backup Financial Figures FY 2017 and Q1 2018
Financials FY 2017 Investor Presentation May 2018 30 Mobile Transportation Technology: FY 2017 growth driven by consolidation effects Order intake up 70.2 million vs. 2016 Positive development at rail door systems as well as interiors for rail vehicles Significant new orders, e. g. from Hitachi Rail Italy for delivery of 39 vehicles including options of up to 300 vehicles Sales growth of 43.1 million vs. 2016 Full-year contribution from Schaltbau Sepsa (+ 19 million) and reclassification of Schaltbau Refurbishment (+ 12 million) Organic business growth at Rawag and Alte EBIT margin of -10.0% vs. +2.3% in 2016 Revaluation of Schaltbau Sepsa ( 24.2 million) Negative operating contribution from Schaltbau Sepsa Group ( -8.7 million) and other foreign subsidiaries almost compensated by positive margin at Bode and Rawag Order intake and revenue in million 400 350 333.4 300 263.2 265.3 250 222.2 200 150 +26.7% +19.4% 100 50 0 Order intake Revenue 2016 2017 EBIT in million 10 5.2 6 2-2 -6-10 -14-18 -22-26 -26.4-30 EBIT * * Operating EBIT 2017: -2.2 million; effect from revaluation of Schaltbau Sepsa: - 24.2 million
Financials FY 2017 Investor Presentation May 2018 31 Stationary Transportation Technology: Weak order intake and revenue development in FY 2017 Significantly lower order intake volume Decline in new business with level crossing technology as well as railway signal technology (axle counting and shunting technology) Sales decrease by 28.8 million vs. 2016 Mainly driven by rail infrastructure products and brake systems Shift of Refurbishment business ( 11.9 million) to MTT EBIT margin of -4.6% (FY 2016: -18.8%) Cost-cutting measures compensate negative volume effects to just a small extent Impairment at Schaltbau Pintsch Bubenzer ( -1.1 million) Provisions for contingent losses high in 2016 ( 16.4 million) Order intake and revenue in million 180 160 157.8 149.3 140 120 114.3 120.5 100 80 60-27.6% -19.4% 40 20 0 Order intake Revenue 2016 2017 EBIT in million 10 5 0-5 -5.5-10 -15-20 -25-30 -28.1-35 -40 EBIT
Financials FY 2017 Investor Presentation May 2018 32 Components: Strong business performance in FY 2017 Order intake clearly improved ( +16.2 million) Higher order intake volume for snap-action switches for rail vehicles both in the new vehicles business and in aftersales business Positive development at SPII in Italy; stabilisation of business in China despite investment shift from locomotives and passenger coaches to metro systems; North America below prior year due to project delays Sales decrease of 6.8 million vs. 2016 Significantly lower revenue at SPII partially offset by sales increases at Schaltbau GmbH EBIT margin improves to 16.4% (2016: 12.5%) Moderate sales decrease overcompensated by positive product mix effects and improved cost structure Order intake and revenue in million 180 160 146.3 137.5 140 130.1 130.7 120 100 80 60 +12.5% -4.9% 40 20 0 Order intake Revenue 2016 2017 EBIT in million 30 25 21.4 20 17.2 15 10 +24.4% 5-28.1 0 EBIT
Financials FY 2017 Investor Presentation May 2018 33 Slight decrease in Group assets in FY 2017 due to divestiture effects Non-current assets 40.0 million below prior year, reduction of both tangible and intangible assets Depreciation on Schaltbau Sepsa due to classification as assets held for sale ( 24.2 million) Classification of Pintsch Bubenzer as assets held for sale ( 16 million) Foundation of joint venture Zhejiang Yonggui Bode Transportation Equipment in China; payment of initial capital contribution Current assets significantly higher ( +32.9 million): Classification of Schaltbau Sepsa and Schaltbau Pintsch Bubenzer as assets held for sale 15.6 million cash inflow from capital increase in May 2017 reported under other receivables and assets 600 500 400 300 200 100 0 Assets in million 459 452 264 297 195 155 End of 12016 End of 2 2017 Non-current Current
Financials FY 2017 Investor Presentation May 2018 34 Equity & liabilities: negative group result impacts equity in FY 2017 Higher non-current liabilities due to restructuring of financial debt: syndicated loan line amounting to 100.0 million and debenture stock classified as long-term liabilities Current liabilities down to 198.5 million due to the aforementioned reclassifications; bridge financing of 25.0 million and current account liabilities classified as short-term Equity decreases by 36.5 million despite 15.5 million capital increase, due to negative net group result; equity ratio of 15.6% (end of 2016: 23.3%) Net financial debt increases to 158.4 million (end of 2016: 148.0 million) Leverage (net financial debt/annual EBITDA) at 7.9 (2016: 9.1); mid-term goal: Further reduction of net financial debt relative to EBITDA to reach a leverage figure around 3 In Q1 2018, the situation improved significantly, driven by the sale of Pintsch Bubenzer and a major equity injection 600 500 400 300 200 100 0 Liabilities in million 459 452 241 199 111 183 107 71 End of 12016 End End of of 2017 2 2017 Equity Non-current Current
Financials FY 2017 Investor Presentation May 2018 35 Positive operating cash flow in FY 2017 Positive operating cash flow ( +10.5 million) reflects stringent working capital management (operating cash flow in FY 2016: +25.8 million) Cash outflow for investments increases vs. 2016 ( -18.2 million), proceeds from capital increase deposited on escrow account ( 15.6 million) Financing cash flow 2017 mainly reflects: 15.5 million cash inflow from capital increase and 4.1 million from new loans 50 45 40 35 30 25 20 31.2 Cash flow 2017 in million EUR +10.5-34.3 Thereof: 15.5 m. EUR escrow account for debt redemption 6.0 million repayment of loans and 11.4 million cash outflow for interest payments 15 10 +5,7-0,9 +12.2 5 0 Cash EoFY 2016 CF op. CF invest CF fin. Currency Cash EoFY 2017 Free cashflow= CF op.+cf invest.
Financials Q1 2018 Investor Presentation May 2018 36 Mobile Transportation Technology: Q1 2018 sales growth driven by positive development at Schaltbau Bode Order intake down 21.4 million, but still above expectations Prior year s figure includes significant major orders, e.g. for Schaltbau Bode (Siemens and Hitachi) Positive development at Schaltbau Rawag Sales growth of 12.3 million Significant increase driven by Schaltbau Bode group EBIT at -0.3 million EBIT performance significantly improved Q1 2018 performance impacted by negative operating contribution from Schaltbau Alte (additional temporary workers, warranty expenses and ramp-up costs) Further improvements in productivity expected in the coming quarters * Excluding Pintsch Bubenzer and Sepsa Order intake and sales in million 120 102.9 100 81.5 80 60 40-20.8% 20 0 Order intake Q1 2017 Q1 2018 58.4 7.4 65.0 51.0 Sales 70.7 5.7 Q1 2017 Q1 2018 like-for-like* Sepsa 1,0 0,5 0,0-0,5-1,0-1,5-2,0-2,5-3,0-3,5-4,0-4,5-5,0-5,5-6,0 EBIT in million -4.7-0.3-0.3-0.7 EBIT EBIT like-for-like* Q1 2017 Q1 2018
Financials Q1 2018 Investor Presentation May 2018 37 Stationary Transportation Technology: Stabilisation and first improvements in Q1 2018 Order intake stable Sales decrease by 6.3 million mainly driven by Pintsch Bubenzer sales; sales like-for-like down by 1.3 million Lower sales volume at Pintsch Bamag due to push-outs in rail infrastructure products (PSD in Brazil, Denmark) EBIT remains on a negative level Negotiations with workers counsel on restructuring agreement with a positive outcome, total savings of 4.0 million EUR for 2018 and 2019 Further restructuring benefits will materialize in the quarters to come, estimated EBIT level for FY 2018 significantly favorable in comparison to FY 2017 * Excluding Pintsch Bubenzer and Sepsa 30 25 20 15 10 5 0 Order intake and sales in million 27.3 27.7 +1.5% Order intake Q1 2017 Q1 2018 23.1 13.2 9.9 16.8 8.2 8.6 Sales Q1 2017 Q1 2018 like-for-like* Bubenzer 2,5 2,0 1,5 1,0 0,5 0,0-0,5-1,0-1,5-2,0-2,5-3,0-3,5-4,0-4,5-5,0-5,5-6,0 EBIT in million -3.5-3.5-3.7-3.6 EBIT EBIT like-for-like* Q1 2017 Q1 2018
Financials Q1 2018 Investor Presentation May 2018 38 Components: Ongoing strong operational performance in Q1 2018 Order intake remains on a high level; book-to-bill at 1.10 Sales strongly improved by 7.7 million Ongoing high demand of connectors, snap-action switches and contactors High order book indicates positive sales level for fiscal year 2018 EBIT improves to 8.3 million EBIT exceeds expectations; strong development driven by high sales volume and favorable product mix Strong EBIT level expected to be maintained throughout 2018 Order intake and sales in million 50 45 40.4 40.4 40 36.7 35 29.0 30 25 20 +26.6% 15 10 5 EBIT in million 10 8.3 5 3.5 0 Order intake Sales Q1 2017 Q1 2018 0 EBIT
Financials Q1 2018 Investor Presentation May 2018 39 Equity base strengthened substantially in Q1 2018, net debt reduced significantly Equity increases by 40.1 million following the successful completion of the capital increase in February 2018 and a significantly improved net group result; equity ratio at 26.9% at the end of Q1 2018 (up from 15.6% at year-end 2017) Reduction of net debt by 54.3 million in Q1 2018 Repayment of 25.0 million in bridge financing as well as repayment of deferred loan and interest liabilities Additional repayment of current account liabilities Restructuring of equity and net debt in million 120 110.7 180 160 158.4 100 140 80 70.6 120 104.1 100 60 80 40 +56,8% 60-34,3% 20 40 20 0 Equity 0 Net debt 31/12/2017 31/03/2018 31/12/2017 31/03/2018
Financials Q1 2018 Investor Presentation May 2018 40 Cash flow in Q1 2018 is affected by sale of Pintsch Bubenzer, capital increases and higher inventories Increase in working capital is mainly driven by higher inventories Change in cash outflow for investments relates mainly to the payments received from the sale of Pintsch Bubenzer as well as cash receipts from escrow account Financing cash flow in Q1 2018 mainly reflects: 46.6 million cash inflow from capital increase in million Free cash flow Cash flow from financing -22.2-9.6 6.6 14.0 66.0 million cash outflow due repayment of loans Cash flow -8.2-2.9 Liquid funds (at period-end) 4.0 28.3 2017 Q1 2018 Q1
Financial calendar and contact details 2018 Annual General Meeting of Shareholders Interim Report H1 2018 Quarterly Statement 9M 2018 7 June 8 August 8 November IR contact Wolfgang Güssgen Head of IR & CC guessgen@schaltbau.de T +49 89 93005-209 Schaltbau Holding AG Hollerithstrasse 5 81829 Munich Germany Picture credits: istockphoto LP
Appendix Investor Presentation May 2018 42 Disclaimer This presentation contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Schaltbau Holding AG and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described herein due to factors affecting Schaltbau Holding AG such as, among other things, changes in the general economic and competitive environment, capital market risks, currency exchange rate fluctuations and competition from other companies, and changes in international and national laws and regulations, in particular with respect to tax laws and regulations. Schaltbau Holding AG does not assume any obligation to update any forward-looking statements. The information contained in this presentation is for background purposes only and does not purport to be full or complete. No reliance may be placed, for any purpose, on the information contained in this announcement or its accuracy or completeness. The information in this presentation is subject to change.