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Investor PresentationSchaltbau Holding AG

May 2018 THE SMART EVOLUTION OF MOBILITY

Picture credits: iStockphoto LP

May 2018Investor Presentation 2

Bringing Schaltbau back on track – experienced management team

Our common

objectives

• Return to profit

• Stick to stringent cost management

• Secure financing capabilities

Dr Albrecht Köhler

CEO (since 19 May 2018)

• 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)

Thomas Dippold

CFO (since Jan 2017)

• CFO Faber-Castell AG (2014-16)

• CFO Semikron International

(2008-14)

• Head of Controlling SCHOTT AG

(2002-08)

Dr Martin Kleinschmitt

CRO (since Aug 2017)

• 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)

Executive Board

Business and Market Overview

4

Business overview

Stationary Transportation TechnologyComponents

En

d m

ark

ets

Mobile Transportation Technology

Sele

cte

d

pro

du

cts

Seg

men

ts

Rolling Stock InfrastructureAutomotive

• Doors and boarding systems for trains, stations, buses and commercial vehicles

• Interior fittings, information, surveillance and communi-cation 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

Disposed

(2)

~52%(1) ~25%(1) ~23%(1)

(1) Source: Company information, segmental split based on FY 2017 financials (2) Put up for sale in November 2017

Investor Presentation

Industry

The Schaltbau Group at a glance May 2018

5

Snapshot of Schaltbau Connect Contact Control Group


• 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

Key p

rod

ucts

Su

bsid

iari

es

Connectors Switches Contactors Master controller

& driver desk

Brake control

Co

mm

en

ts

c. 25% of

Group sales(1)

Key operating entities May 2018

(1) FY 2018 forecast, pre consolidation

6

Snapshot on Schaltbau Bode Group


• 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

Key p

rod

ucts

Su

bsid

iari

es

Co

mm

en

ts

Rail door systems Interiors

c. 50% of

Group sales(1)



c. 17% of

Group sales(1)

7

Snapshot of Pintsch Bamag Group


• 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)

Key p

rod

ucts

Su

bsid

iari

es

Level crossing Marshalling yards Axle counting Point heating

Co

mm

en

ts



Megatrends drive sustainable growth in global rail markets

Market and competitive environment 8

Megatrends

Digitisation / Automation

Urbanisation

Emission reductions

Connectivity

Electrification / e-mobility

Safety

Globalisation / China

Regulation and Liberalisation

Vehicles

• All common railway vehicles

MobileTransportation Technology / Components

Infrastructure & Rail Control

• Railway crossings, rail control and signal technology for tracks, trains and control centers

Stationary Transportation Technology Services

• Maintenance incl. spare parts and renovation

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%

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 growth(1): ~1.9%

• Market size: ~€60bn





May 2018Investor Presentation

Railway market with oligopolistic supplier structure in many segments

Investor Presentation 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

Overall rolling stock OEMs in the market Selected suppliers in the Schaltbau railway market

Other OEM(2)

Other

€158bn(1)

3.

4.

5.

6.

7.

8.

9.

10.

(3)

/

1.

2.

14%

5%

4%

4%

3%

70%

Market and competitive environment May 2018

Striving for sustainable and profitable growth–Management Agenda 2017 & Q1 2018 fulfilled

11

Management agenda 2017 & Q1 2018 fulfilled: higher financial flexibility for ongoing restructuring activities and organic growth in core business areas

Key developments

Strengthening of future competitiveness

Stabilisation of operative business

Stabilisation of financial situation

Major cost reduction programmes initiated

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

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 mid-term 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

Investor Presentation May 2018

12

Sales and earnings targets 2017 (as adjusted over time) achieved

Financials – FY 2017

Order intake+7.8% vs. 2016

€ 594.0 million

Sales+1.5% vs. 2016

€ 516.5 million

EBIT€ 2.4 million before one-off effects

One-off effect of revaluation of Schaltbau Sepsa: € -24.2 million

Goodwill impairment Schaltbau Pintsch Bubenzer: € -1.1 million

€ -23.0 million reported


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)

Strong order intake in FY 2017 mainly due to contribution from Mobile Transportation Technology


263333

158114

130146

0

100

200

300

400

500

600

700

800

1 2

551594

2016 2017

13

Order intake in € million

Mobile Transportation Technology Stationary Transportation Technology Components


35

42

23Sales 2017 by market in %

Germany

Rest of Europe

Rest of World

222265

149121

138 131

0

100

200

300

400

500

600

700

1 2

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

FY 2017 sales increase in line with management expectations


509 517

2016 2017

14

Sales in € million


Germany

Rest of Europe

Rest of World


-14.5

-25

-20

-15

-10

-5

0

5

10

15

20

25

EBIT EBITDA

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

Extraordinary Schaltbau Sepsa revaluation impacts Group EBIT in 2017


-2.8%

+3.9%

2016 2017

15

EBIT and EBITDA in € million

-4.4%

+3.2%

16.420.1

-23.0


-12.0

-49.6

-15.8

-51.7-60,0

-50,0

-40,0

-30,0

-20,0

-10,0

0,0

10,0

20,0

Group net profit Schaltbau Shareholders

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

One-time effects related to refinancing activities

Net result 2017 impacted by higher financing costs


€ -2.61 per

share

€ -8.04 per

share

2016 2017

16

Net profit in € million


Reduction in order intake by 12.6%, € 21.6 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)

Q1 2018 order intake remains at a high level

Financials – Q1 2018

10381

27

28

41

40

0

50

100

150

200

1 2

171

149

Q1 2017 Q1 2018

17

Order intake in € million



59 5171 64

23

10

179

29

29

37

37

0

50

100

150

200

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

Sales growth in Q1 2018 driven by increases in Mobile Transportation Technology and Components

Financials – Q1 2018

111

124

18

Sales in € million


Q1 2017like-for-like*

Q1 2018Q1 2017 Q1 2018like-for-like*

90

110


* Excluding Pintsch Bubenzer and Sepsa

-8.5

2.0

-4.7

1.9

-15

-10

-5

0

5

10

EBIT EBIT like-for-like

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

Earnings per share at € -0.46 (Q1 2017: € -2.00)

Significant EBIT improvement in Q1 2018

Financials – Q1 2018 19

EBIT in € million

Q1 2017 Q1 2018

EBIT margin -7.7%

EBIT margin1.6%

EBITmargin like-for-like*

-5.2%

EBIT margin like-for-like*

1.7%



Restructuring roadmap Schaltbau: Major milestones successfully achieved – further road to go

Create financial headroom

Stabilize operational performance

Achieve satisfactory debt level

Selective investments

Ensure profitability on market level

Step up investments in market opportunities and digital business models

2017 2018 2019 2020

REDUCE DEBT

REDUCE COSTS

EXPLOIT GROWTH OPPORTUNITIES

REDUCE COMPLEXITY

2018 – 2019 2019 – 20202017 – 2018

Priorities until 2020 20


21

Comprehensive restructuring measures initiated


• 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

• Personnel adjustments, restructuring of central functions (e.g. Controlling)

• Execution of order for >300 trains (Italian prototype)

• Expansion of services & after-sales business

• Relocation of production site Sprockhövel to Dinslaken (end of 2019)

• Improvement of terms and conditions with large customers

• Efficiency increase in production through lean management

Operational restructuring measures

Subsidiary Selected measures Current status

Mobile

Transportation

Technology

Components

Stationary

Transportation

Technology

Holding

• Planned expansion of refurbishment & services business

Group-wide procurement optimizationGroup

Restructuring in detail May 2018

Strategic Agenda

Goals of Schaltbau Group


Maintain a leading market position

Focus on profitable sustainable business activities

Create new business opportunities via collaboration between product areas and business segments

1

2

4

5 Increase customer focus and strengthen client relationships

Implement restructuring concept to increase profitability3

Sustainable and

profitable growth

May 2018Strategic agenda

Main pillars of Schaltbau Group strategic agenda


Technical

innovation, quality

and

system

integration

Operational

excellence

(performance

culture)

Comprehensive

market and

customer handling

(customer focus)

Systematic life-

cycle business

models incl. After

Sales / Service

Internationalisation

“Think global /

Act local”

“Sustainable and profitable growth”

Solid financing to enable strategic and operational flexibility

Corporate culture und governance / Qualified employees / Ready-for-change organisational culture


Strategic positioning going forward


5

OE

Ms

• Decentralised entities with enhanced management/leadership structure (SMC)

• Greater transparency, more standardised coordination throughout the GroupManagement principles

• 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

Europe as core market with additional bases in China and USA

1 Regions

• 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)

Supplier with digital product portfolio

2 Products

• 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

Focus on railway and automotive industry

3 Customers

• Continuous efficiency improvements along the entire value chain

• Targeted production optimisation through implementation of lean production approaches

• Further efficiency advantages through consolidation of productions

Achieve operational excellence throughout the value chain

4 Operations


Sales guidance 2018

Guidance

Sales Guidance for 2018 with a range of € 480-500 million (without Sepsa and taking into account sale of Pintsch Bubenzer in February 2018)

Organic Growth of around € 40 – 60 million expected for FY 2018:

Strong growth in Mobile Transportation driven by Schaltbau Bode Group

Positive sales outlook for Component business

26

52

490

517

Pintsch Bubenzer*

Sales FY 2017

-41

Sales guidanceFY 2018

-37

Sepsa** Organic growth

in € million

€ 480-500 million

* Adjusted by FY 2017 and 01-02/2018 sales** Adjusted by FY 2017 sales


Outlook (in € million) Guidance FY 2018* 2017

Order intake 500-520** 594.0

Sales 480-500** 516.5

Mobile Transportation Technology

Significant improvement

265.3

Stationary Transportation Technology

Significant decline 120.5

Components Slight increase 130.7

EBIT margin Around 3%** 0.5%***

Targets 2018

Guidance

* Compared to FY 2017** Excluding Pintsch Bubenzer and Sepsa*** Excluding extraordinary items

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

27Investor Presentation May 2018


Schaltbau Vision 2020

Operational excellence

throughout the organizationDisposal of non-core business

State-of-the-art product and service

offering in terms of quality and innovation

Overall increased share of service and

international revenues

2020

“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.”

May 2018

Backup Financial Figures FY 2017 and Q1 2018

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 deliv-ery 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

Mobile Transportation Technology: FY 2017 growth driven by consolidation effects


263.2

222.2

333.4

265.3

0

50

100

150

200

250

300

350

400

Order intake Revenue

2016 2017

5.2

-30

-26

-22

-18

-14

-10

-6

-2

2

6

10

EBIT

-26.4

+26.7% +19.4%

30

Order intake and revenue in € million EBIT in € million

*

* Operating EBIT 2017: € -2.2 million; effect from revaluation of Schaltbau Sepsa: € - 24.2 million


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)

Stationary Transportation Technology: Weak order intake and revenue development in FY 2017


157.8149.3

114.3120.5

0

20

40

60

80

100

120

140

160

180


2016 2017

-27.6% -19.4%

31

-28.1

-5.5

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10

EBIT



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 after-sales 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

Components: Strong business performance in FY 2017


130.1137.5

146.3

130.7

0

20

40

60

80

100

120

140

160

180


2016 2017

+12.5% -4.9%

32

-28.1

17.2

21.4

0

5

10

15

20

25

30

EBIT


+24.4%


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

Slight decrease in Group assets in FY 2017 due to divestiture effects


195155

264297

0

100

200

300

400

500

600

1 2

Non-current Current

459 452

33

Assets in € million

End of 2016 End of 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 afore-mentioned 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

Equity & liabilities: negative group result impacts equity in FY 2017


10771

111 183

241 199

0

100

200

300

400

500

600

1 2

Equity Non-current Current

End of 2016End of 2017

34

459 452

Liabilities in € million

End of 2017


0

5

10

15

20

25

30

35

40

45

50

Cash flow 2017 in million EUR

Thereof: 15.5 m. EUR escrow account for debt redemption

CF op. CF invest CF fin. Currency Cash EoFY 2017

Cash EoFY 2016

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

€ 6.0 million repayment of loans and € 11.4 million cash outflow for interest payments

Positive operating cash flow in FY 2017

Financials – FY 2017 35

Free cashflow= CF op.+CF invest.

+10.5

31.2

+12.2

-34.3

+5,7 -0,9


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

Mobile Transportation Technology: Q1 2018 sales growth driven by positive development at Schaltbau Bode

36

-4.7

-0.7-0.3 -0.3

-6,0

-5,5

-5,0

-4,5

-4,0

-3,5

-3,0

-2,5

-2,0

-1,5

-1,0

-0,5

0,0

0,5

1,0

Q1 2017 Q1 2018

102.9

81.5

0

20

40

60

80

100

120

Order intake

Q1 2017 Q1 2018

-20.8%

Order intake and sales in € million EBIT in € million

51.0

65.0

7.4

5.7

Q1 2017 Q1 2018

58.4

70.7

Sepsalike-for-like*

EBIT EBIT like-for-like*

Sales

Financials – Q1 2018 Investor Presentation May 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

Stationary Transportation Technology: Stabilisation and first improvements in Q1 2018

37

27.3 27.7

0

5

10

15

20

25

30

Order intake

Q1 2017 Q1 2018

+1.5%

9.98.6

13.2

8.2

23.1

16.8

Order intake and sales in € million

-3.5 -3.7-3.5 -3.6

-6,0-5,5-5,0-4,5-4,0-3,5-3,0-2,5-2,0-1,5-1,0-0,50,00,51,01,52,02,5

Q1 2017 Q1 2018

EBIT in € million

EBIT EBIT like-for-like*Q1 2017 Q1 2018

Bubenzerlike-for-like*

Sales



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

Components: Ongoing strong operational performance in Q1 2018

40.4

29.0

40.4

36.7

0

5

10

15

20

25

30

35

40

45

50

Order intake Sales

Q1 2017 Q1 2018

+26.6%

38

Order intake and sales in € million EBIT in € million

3.5

8.3

0

5

10

EBIT


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

Equity base strengthened substantially in Q1 2018, net debt reduced significantly

39

Restructuring of equity and net debt in € million

70.6

110.7

0

20

40

60

80

100

120

Equity

31/12/2017 31/03/2018

+56,8%

158.4

104.1

0

20

40

60

80

100

120

140

160

180

Net debt

31/12/2017 31/03/2018

-34,3%


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

€ 66.0 million cash outflow due repayment of loans

Cash flow in Q1 2018 is affected by sale of Pintsch Bubenzer, capital increases and higher inventories

40

-9.6

6.6

-2.9

28.3

14.0

-22.2

-8.2

4.0

Free cash flow

Cash flow from financing

Cash flow

Liquid funds (at period-end)

2017 Q1 2018 Q1

in € million


Schaltbau Holding AGHollerithstrasse 581829 MunichGermany

IR contactWolfgang GüssgenHead of IR & [email protected] +49 89 93005-209

7 June

8 August

8 November

Financial calendar and contact details

2018

Annual General Meeting

of Shareholders

Interim Report H1 2018

Quarterly Statement 9M 2018

Picture credits: iStockphoto LP

mailto:[email protected]

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.

May 2018Appendix

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