Growth drivers in the first half of 2016/17 were the core markets: automotive electronics with a rise of 14%, machine tools with an increase of 45% and power supplies for electronic devices with growth of 7%. After a slump in the second half of the previous year, the energy-efficient drive systems and rail technology core markets also showed slight improvements. As in the first half of 2015/16, 22% of Group sales came from North America, while Europe accounted for 41% (H1 2015/16: 40%) and Asia for 37% (38%). In the first half of 2016/17, Schaffner received new orders worth CHF 99.7 million (CHF 94.2 million). The book-to-bill ratio for the Group was 1.05 (1.02).

In the first half of 2016/17, segment sales in the EMC division remained more or less unchanged from the prior-year level at CHF 45.7 million (CHF 45.4 million). Segment profit, on the other hand, nearly doubled to CHF 6.2 million (CHF 3.2 million), while the profit margin increased by 6.6 percentage points to 13.6% (7.0%). As a result of further progress in operational excellence, production costs were reduced slightly despite a marginal increase in raw material prices.

The Power Magnetics division is still in turnaround mode. In the first half of 2016/17, a sequential compari­son of segment sales versus the preceding period showed an improvement of 16% from CHF 20.2 million to CHF 23.4 million (H1 2015/16: CHF 25.2 million), while segment losses before restructuring costs were nearly halved from CHF -6.2 million to CHF -3.5 million (H1 2015/16: CHF -3.0 million).

Segment sales in the Automotive division rose to CHF 25.4 million in the first half of 2016/17 (CHF 22.0 million). Segment profit amounted to CHF 5.9 million (CHF 4.7 million), and the profit margin was confirmed at a high level of 23.1% (21.4%). The division has identified growth opportunities in the market for EMC fil­ters for electric vehicles. A multiyear contract with a European premium automobile manufacturer has al­ready been concluded. The first deliveries are scheduled for fiscal year 2017/18. Schaffner is expecting the electric vehicles market to make a significant contribution to segment sales from fiscal year 2018/19 onwards.

Outlook

The core markets – automotive electronics, rail technology, energy-efficient drive systems, power supplies for electronic devices, machine tools and electromobility – offer long-term opportunities for organic growth within the scope of the Group's strategic targets. Although global economic development is difficult to predict due to political and macroeconomic risks, its strong position in attractive niche markets and solid orders in the EMC and Automotive divisions make the Schaffner Group confident of continuing its recovery and ex­ceeding the results of the same period last year in the second half of 2016/17. Following the turnaround of the Power Magnetics division, Schaffner looks forward to achieving its medium-term targets, with organic growth of >5% and an EBIT margin of >8%.

Contact

Kurt Ledermann

Interim CEO / CFO

T +41 32 681 66 08

kurt.ledermann@schaffner.com

Half-Year Report 2016/17

The full Half-Year Report for 2016/17 and the associated presentations can be found at:

www.schaffner-ir.com/reports/

Audio webcast

The webcast presentation of the first-half results for fiscal 2016/17 will be available from 10.00 a.m. on 11 May 2017 at the following link:

http://78449.choruscall.com/dataconf/productusers/schaffner/mediaframe/19224/indexl.html

Conference call at 10.00 a.m. on 11 May 2017

Dial one of the following phone numbers around 10 minutes before the conference call is due to start:

Europe +41 58 310 50 00 / UK +44 203 059 58 62 / USA +1 631 570 5613

Financial calendar

Schaffner Group | Key financials