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| 1 Annual Press Conference 2009 - 31 March 2009 Daetwyler Group Annual Press Conference Analyst Presentation 31 March 2009
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| 2 Annual Press Conference 2009 - 31 March 2009 Annual Review and Outlook Dr. Paul J. Haelg CEO
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| 3 Annual Press Conference 2009 - 31 March 2009 German Ifo Business Climate Index Ifo Business Survey for February 2009 Index, 2000= 100, seasonally adjusted Economic environment: indicators at an all-time low Swiss PMI – Swiss Purchasing Managers’ Index PMI in February: 32.6 points
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| 4 Annual Press Conference 2009 - 31 March 2009 Raw materials: Up and down of oil and copper prices Crude oil price development: Copper (US… (raw materials indication) 200 days Copper price development:
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| 5 Annual Press Conference 2009 - 31 March 2009 EBIT Margin % Net revenue EBITDAEBIT7.4%3.8%5.9%9.5%10.4% +10.3% +12.9% +20.7% Focus on niches pays off sustainably Record earnings from continuing operations Record earnings driven by profitable growth CHFm +27.0% Profit for the year Since 2007, continuing operations excluding the Precision Tubes Division
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| 6 Annual Press Conference 2009 - 31 March 2009 2008/2007 balance sheet structure Cash and cash equivalents Receivables Inventories Non-current assets 20082007 1 411.9 1 331.6 Assets CHFm Current liabilities Non-current liabilities Equity Equity ratio 20082007 1 331.6 1 411.9 Liabilities and equity CHFm 70.0% 58.7%
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| 7 Annual Press Conference 2009 - 31 March 2009 Return on capital employed 2004 - 2008 Equity in CHFm Net operating assets in CHFm ROE % (net profit / equity) RONOA % (EBIT / net operating assets)
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| 8 Annual Press Conference 2009 - 31 March 2009 Dividend payment 25.3% payout ratio (excl. treasury and unissued shares) Profit for the year Proposal to 2008 AGM Proposed dividend for 2009: CHF 1.80 per bearer share 1 86.3 1 2 Profit for the year from continuing operations Profit distribution in the form of a par value repayment 1 2
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| 9 Annual Press Conference 2009 - 31 March 2009 Products Market Our four divisions CablesRubber Pharmaceutical Packaging Technical Components Cabling and systems for datacom, safety and elevators Precision moulded components, special seals and gaskets, sealing technology Rubber and aluminium/plastic closures Engineering and electronic com- ponents, specialist and mail order distribution Non-residential buildings Automotive, construction, industrial Pharmaceutical industry Industry, small to medium-sized businesses
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| 10 Annual Press Conference 2009 - 31 March 2009 Largely stable market environment – copper write-downs Highlights Stable performance in the main markets Operations in China on track Market positions expanded further New strategic direction as a system supplier has met customers’ expectations Focus on productivity enhancements rather than on capacity expansion Impacts of copper prices and currencies brought the EBIT margin down from 7.8% to 5.0% Cables in 2008 Net revenue in CHFm EBIT as % of net revenue +0.8% (8.9%)7.6% 5.0% (3.2%) 3.0%
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| 11 Annual Press Conference 2009 - 31 March 2009 Cables benchmarking March 2009 analysis by www.obermatt.com Revenue growth Slowdown in growth momentum Peer group: direct peers Revenue growth March 2009 analysis by www.obermatt.com Peer group: direct peers EBIT margin Copper write-downs narrow the EBIT margin EBIT margin
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| 12 Annual Press Conference 2009 - 31 March 2009 Demand remaining largely stable – decline expected in the second half Main factors Performance still stable in the main markets, with a decline in revenue expected in the second half of the year Decline in elevator business and cable harnessing Temporary contracts cancelled, about 70 people working short time at the Altdorf plant from April 2009 Engineering capacity expanded with the acquisition of the SymbioTec operations Copper write-downs again weighing on the margin for 2009 Cables in 2009
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| 13 Annual Press Conference 2009 - 31 March 2009 Rubber in 2008 Profitability enhanced – decline in automotive business Highlights Growth curbed by decline in automotive business Consumer goods contract successfully got up and running Portfolio consistently streamlined About 170 jobs cut in the Czech Republic and USA Mexican plant set up and Ukrainian plant expanded Full project pipeline driven by positioning as a development partner Focus on core businesses paid off in an EBIT margin of over 10%. Net revenue in CHFm EBIT as % of net revenue +0.7% 2007 EBIT margin before impairment charges 2.5%4.7%8.0%10.2% 5.9%
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| 14 Annual Press Conference 2009 - 31 March 2009 Rubber benchmarking Revenue growth Growth curbed by slump in automotive business Analysis March 2009 by www.obermatt.com Peer group: European Peers Revenue growth EBIT margin Portfolio focusing has paid off in a higher EBIT margin EBIT margin Peer group: European Peers Analysis March 2009 by www.obermatt.com 2007 EBIT Marge vor Sonderabschreibungen
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| 15 Annual Press Conference 2009 - 31 March 2009 Rubber in 2009 No recovery expected for 2009 – cost-cutting measures kick in Main factors No significant recovery expected for 2009 Programmes to boost economic activity may stimulate demand later in the year New projects starting in 2009 mean growth for 2010 onwards Working short time since January and another 30 jobs cut to date Transfer of production from the USA to Mexico and shutdown of the plant in Marion (USA) at the end of 2009 Consumer goods contract continuing to grow
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| 16 Annual Press Conference 2009 - 31 March 2009 Growth ahead of market – raw material costs reduce margin Highlights Growth well ahead of the average market growth of 6% Market development activities and GMP (Good Manufacturing Practice) stepped up further New Omniflex generation launched New “FirstLine” clean room production unit commissioned Margins under pressure due to increasing raw material prices Slight decline in the EBIT margin to 11.1% Pharmaceutical Packaging in 2008 Net revenue in CHFm EBIT as % of net revenue +8.6%13.3%11.1%11.3% 11.1% 12.1%
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| 17 Annual Press Conference 2009 - 31 March 2009 Pharmaceutical Packaging benchmarking March 2009 analysis by www.obermatt.com Peer group: direct peers Revenue growth Encouraging growth momentum Revenue growth Peer group: direct peers EBIT margin EBIT margin in the median range EBIT margin
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| 18 Annual Press Conference 2009 - 31 March 2009 Non-cyclical pharmaceutical market - growth expected to slightly outpace the market Main factors No significant cost-cutting measures Focus on certification of “FirstLine” production Improved margin driven by price increases and falling raw material prices Automation projects being implemented to increase productivity and quality Evaluation of “low-cost” locations for less sophisticated products Pharmaceutical Packaging in 2009
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| 19 Annual Press Conference 2009 - 31 March 2009 Strategic expansion with ELFA – operational problems at Maagtechnic Highlights Growth driven by the consolidation of the ELFA Group Market slowdown late in the year, more pronounced in Eastern and Northern Europe Distrelec/ELFA integration projects proceeding to plan Swiss distribution of Shell lubricants taken over in August Maagtechnic’s strategic projects now completed EBIT margin falling to 9.1% due to the lower profit contribution from Maagtechnic Technical Components in 2008 +19.2% Net revenue in CHFm EBIT as % of net revenue5.3% 8.6%9.9%9.1% 4.3%
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| 20 Annual Press Conference 2009 - 31 March 2009 Technical Components benchmarking Revenue growth High growth momentum driven by acquisitions March 2009 analysis by www.obermatt.com Peer group: direct peers EBIT margin Above-average EBIT margin supported by niche positions Peer group: direct peers March 2009 analysis by www.obermatt.com Revenue growth EBIT margin
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| 21 Annual Press Conference 2009 - 31 March 2009 Marked drops in sales revenue – opportunities for acquisitions Main factors Marked drops in sales revenue from industrial customers since the beginning of the year About 40 job cuts at Maagtechnic and about 30 at Distrelec/ELFA planned or already carried out Working short time in Germany and France, with further restructuring on the cards Focus on joint catalogue for Distrelec and ELFA Capitalising on acquisition opportunities Technical Components in 2009
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| 22 Annual Press Conference 2009 - 31 March 2009 PY CablesRubber Pharmaceutical Packaging Technical Components 273.3 271.2 154.9 153.9 283.2 260.8 585.3 491.1 5.0 % 7.6 % 10.2 % 8.0 % 11.1 % 11.3 % 9.1 % 9.9 % 2.25 1.99 1.21 1.60 0.88 0.75 0.81 1.33 774 781 712 1 038 1 353 1 317 1 576 1 112 Division summary for 2008 Net revenue in CHFm Capital turnover EBIT as % of NR Full-time equiv.
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| 23 Annual Press Conference 2009 - 31 March 2009 Market environment in 2009 Q1 run rate Initiatives in 2009 CablesRubber Pharmaceutical Packaging Technical Components Demand expected to decline in the second half of the year Low demand without significant improve- ment Stable market performance Declines in business with industrial customers Cost-cutting measures Expansion of engineering Cost-cutting measures Start of new projects Transfer of US plant to Mexico Market activities to be stepped up further Certification of “FirstLine” Cost-cutting measures Joint Distrelec/ELFA catalogue Acquisitions Revenue down 20% (excluding acquisition) – a profit and positive free cash flow Summary outlook for 2009
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| 24 Annual Press Conference 2009 - 31 March 2009 CablesRubber Pharmaceutical Packaging Technical Components Strong regional niche positions Strong global niche positions Strong global niche position Strong regional niche positions Implementing a systems approach in the regions Focusing on sealing technology for global markets (automotive, civil engineering, industrial) Driving organic growth through geographical expansion, innovation and increased value added Realising synergy and growth potential from the ELFA acquisition, expansion in Eastern Europe 6 – 9%7 – 9%11 – 14%9 – 12% Strategic priorities and medium-term EBIT targets remain unchanged Strategic objectives Strategic priorities EBIT range (medium-term)
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| 25 Annual Press Conference 2009 - 31 March 2009 Intact business opportunity Cyclicality reduced by the portfolio realignment during the boom phase Precision Tubes Division sold Mail order distribution expanded with the ELFA acquisition Pharmaceutical Packaging Division having a stabilising effect as a non- cyclical business generating about 25% of Group revenue Strong market positions supported by consistent focus on niches Robust balance sheet and high liquidity Capitalising on acquisition opportunities: Strategically expanding the Technical Components and Pharmaceutical Packaging Divisions Consolidating the Cables and Rubber Divisions Extending portfolios
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| 26 Annual Press Conference 2009 - 31 March 2009 Disclaimer This presentation contains forward-looking state- ments that reflect the Group’s current expectations regarding market conditions and future events and are therefore subject to a number of risks, uncertain- ties and assumptions. Unanticipated events could cause actual results to differ from those predicted and from the information contained in this presen- tation. All forward-looking statements in this presen- tation are qualified in their entirety by the foregoing.
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