Analyst & Investor Presentation 9/10 January 2020 Lyon ODDO - PowerPoint PPT Presentation

Analyst & Investor Presentation 9/10 January 2020 │ Lyon ODDO BHF Forum

Schaltbau Group │ Introduction

Schaltbau Group – key facts  Leading supplier of technology for rolling stock, rail infrastructure, automotive and other industrial applications  World market leader in direct current switching technology  Global innovation driver and key technology partner for future markets New Energy, New Mobility, DC industry  Founded in 1929  Employees: c. 3,000  Turnover: c. € 500m, of which 70% rail, regional split 35% D, 45% rest of Europe, 20% rest of world 1  Listed at Frankfurt Stock Exchange, Prime Standard segment, IPO 1994  30 subsidiaries in 15 countries worldwide 9/10 January 2020 ODDO BHF Forum 3

Global footprint of Schaltbau Group with market leading core brands Europe Schaltbau Holding AG Munich (Germany) SBRS GmbH Representative Office in Moscow (Russia) Dinslaken (Germany) Gebr. Bode GmbH & Co. KG Kassel (Germany) Schaltbau North America Inc. , RAWAG Sp. z.o.o. Hauppauge, New York (USA) South East Asia Rawicz (Poland) PINTSCH TIEFENBACH US, Inc., Schaltbau Transportation China: Marion, Illinois (USA) BODO Bode Dogrusan Otomotiv UK Ltd. Milton Keynes (UK) Schaltbau Asia Pacific Yan San ve TIC A.S. , Bode North America Inc., Schaltbau GmbH Ltd. , Hong Kong Bursa (Turkey) Spartanburg, South Carolina (USA) Munich (Germany) Shenyang Schaltbau & Schaltbau Machine BODO PRO-LAST PROFIL SAN. CE TIC A.S. , Electrical Co., Ltd. , Electrics Ltd. Cwmbran (UK) Bursa (Turkey) Shenyang Schaltbau Austria GmbH Schaltbau India Pvt. Ltd. , Xi´AN Schaltbau Wien (Austria) Thane (Mumbai) Electric Co., Ltd. , SPII S.P.A. , Xi´an Saronno (Italy) Xi´AN SPII ELECTRIC Schaltbau France S.A.S. Co., Ltd. , Xi´an Argenteuil (France) Shenyang Bode PINTSCH GmbH Transportation Locations in Germany Dinslaken (Germany) Equipment Co., Ltd. , PINTSCH B.V. Shenyang Utrecht (The Netherlands) Zhejiang Yonggui + 1,700 employees Bode Transportation in 5 locations Equipment Co., Ltd. , PINTSCH BAMAG BRASIL Zhejiang Schaltbau Radél South Africa PTY Technologia Ferroviária Ltd. , Ltd. , Olivedale Sao Paulo South Korea: & Bode Korea Co., Ltd. , Schaltbau Siyakhulisa South Seoul Africa PTY Ltd. , Olivedale Pintsch BODE Kassel Dinslaken 786 Representative Office 391 in Kanagawa (Japan) Schaltbau Munich Segment Mobile Transportation Tech. Segment Stationary Transportation Tech. Segment Components 588 9/10 January 2020 ODDO BHF Forum 4

Experienced Schaltbau management team on track for profitable growth We are a pioneer and key technology partner in the field of safe, Dr Albrecht t Köhle ler Volk olker Kregelin in Thom homas Dipp ppold ld sustainable energy and Chie hief Ex Executive Offic ficer Chie hief Offic icer for or Mobile le & & Statio ionary y Chie hief Financia ial l Offic icer (sin since May y 20 2018 18) Tran ansp. Technolo logy y (sin ince Dec 20 2018 18) (sin since Jan an 20 2017 17) mobility • Freelance interim CEO / COO (2016-18) • Leading sales and general management • CFO Faber-Castell AG (2014-16) solutions! • Deputy CEO GAZ Group (2014-16) roles in MTT & STT at Bombardier • CFO Semikron International Trnspt. (2007-18) • Managing Director Knorr Bremse rolling (2008-14) • Reg. head / COO at Dematic (2004-07) stock bus. unit (2000-14) • Head of Controlling Schott AG • Senior roles in projects, operations and • Leading general management and (2002-08) sales at Siemens and Adtranz / operations roles at Dt. / Daimler Benz Bombardier Trnspt. (1993-2003) Aerospace (1989-1999) 9/10 January 2020 ODDO BHF Forum 5

Recent achievements and next steps  Schaltbau Group delivered on further improving operational excellence  Refinancing of EUR 151.5 million successfully secured  Key risk items eliminated from the balance sheet (platform screen doors project, goodwill, capitalised development expenses)  Alte and Sepsa exit strategies successfully executed as planned  Management Team broadened by seasoned experts (Pintsch and Bode) SMART SO SM SOLUTIONS  Elimination or mitigation of loss-making deals FOR PO POWER AND D MOBILITY  Ongoing strategic re-orientation process of Schaltbau Group  Several Technological advancements under development at Pintsch  Development of innovative boarding systems for new mobility concepts  Penetration of “new Energy markets” (Contactor, charging stations)  Site structure programme implemented at Bode Group (Fit for Future II) 9/10 January 2020 ODDO BHF Forum 6

Schaltbau Group – switching to growth Increase profitability Improve cash flow Expand business in growing market niches  Improve Comfort , Safety and Reliability for passengers on rail and on road as an innovation driver with key technology  Enable resource-saving DC energy use in industrial applications such as smart grids , production plants and solar power systems 9/10 January 2020 ODDO BHF Forum 7

Schaltbau Group – investment case  Attractive market environment based on megatrends  Cl Clim imate change, urb urbanis isatio ion and di digi gitis isatio ion are driving demand for new rail vehicles & infrastructure  Increasing use of di direct current technol ology with high voltages driven by Ne New Ene Energy and Ne New Mo Mobi bili lity applications  increasing number of DC DC-Industry applications evolving in industrial power grids, SM SMART SO SOLUTIONS especially in energy-intensive sectors such as automotive production  Schaltbau Group has occupied leading market positions with well established FOR PO POWER AND D MOBILITY brands Schaltbau , Bode , Pintsch and SBRS  Schaltbau Group is acting as an innovation driver by leveraging core expertise  Long-standing and stable customer relationships , especially in the rail business  Significant increase in profitability via process improvements, reorganisation and modular development  Restructuring completed and risk-items removed from balance sheet 9/10 January 2020 ODDO BHF Forum 8

Schaltbau Group – business overview MTT* COM* STT* ~3 ~35% 5% ** ** ~5 ~50% 0% ** ** ~5 ~5% ** ** ~1 ~15% 5% ** ** * COM = Components, MTT = Mobile Transportation Technology, STT = Stationary Transportation Technology ** Segmental sales split based on FY 2019 plan numbers, pre consolidation, rounded to the nearest 5% multiple 9/10 January 2020 ODDO BHF Forum 9

Components Segment: Schaltbau GmbH │ Connect – Contact – Control

COM – Snapshot of Schaltbau GmbH ~35% of Group sales * DC technology for trains, new energy and COM MTT STT electromobility, driver desk equipment • Broad range of best-in-class connectors, snap-action switches and contactors for a broad range of applications in the rail sector and other industries • State-of-the-art train driver desk equipment • Development activities focus on high-performance DC contactor technology in applications beyond rail, such as new energy, electromobility and DC industry • High share of international sales, broad customer distribution • Has developed from a pure component supplier to an application specialist providing components, assembly and service • Highly efficient operations • High order intake with strong and sustainable margins * FY 2019E, pre consolidation, rounded to the nearest 5% multiple 9/10 January 2020 ODDO BHF Forum 11

COM – DC switching technology (1/6) DC contactors for rolling stock  Used with a whole range of current collectors  Depending on the application, these contactors can be large and heavy  Example: CP1130/20 9/10 January 2020 ODDO BHF Forum 12

COM – DC switching technology (2/6) Schaltbau DC components are suitable for a broad range of applications and meet the necessary norms and standards 9/10 January 2020 ODDO BHF Forum 13

COM – DC switching technology (3/6) New energy applications drive each other 9/10 January 2020 ODDO BHF Forum 14

COM – DC switching technology (4/6) DC contactors for new applications  Positioning in attractive growth markets  Often far more compact than conventional rail contactors  Examples: C310, C294 9/10 January 2020 ODDO BHF Forum 15

COM – DC switching technology (5/6) Not deploying safety technology is a major risk 9/10 January 2020 ODDO BHF Forum 16

COM – DC switching technology (6/6) Boom expected, 1. Electric passenger cars depending on € bn infrastructure The global market for relevant DC contactors * 1.4 is predicted to grow at CAGR of >20% Niche business 2. Electric communal trucks 1.2 3. Electric light duty ( ≤6t) + 1.0 Stable yearly demand, medium duty (≤16t) based on existing figures commercial vehicles 0.8 Extraordinary growing due to increasing short- 4. Electric light distance deliveries and commercial vehicles 0.6 suitable charging infrastructure in depots 0.4 5. Electric bus family Stable yearly demand, (6, 8, 12 metres) based on existing figures 0.2 Moderate/stable growth due to market saturation 6. Stationary energy 0.0 and long usage times 2019 2020 2021 2022 2023 2024 2025 Mat. handling / forklift Stationary energy Electric bus Stable growth due to 7. Material handling MDEV + LDEV Communal trucks Light comm. vehicles logistics increase Passenger cars * Own etimates 9/10 January 2020 ODDO BHF Forum 17

Mobile Transportation Segment: Bode Group & SBRS GmbH