Investor Presentation Schaltbau Holding AG April 2019 April 2019 - PowerPoint PPT Presentation

Investor Presentation Schaltbau Holding AG April 2019

April 2019 Executive Board Investor Presentation 2 Experienced management team bringing Schaltbau back to historical profitability Our common objectives • Return to profit Dr Albrecht Köhler Volker Kregelin Thomas Dippold • Secure Chief Executive Officer Chief Officer for Mobile & Stationary Chief Financial Officer financing (since May 2018) Transp. Techn. (new since 1 Dec 2018) (since Jan 2017) capabilities • Freelance interim CEO / COO (2016-18) • • Leading sales and general management CFO Faber-Castell AG (2014-16) • roles in MTT & STT at Bombardier Deputy CEO GAZ Group (2014-16) • CFO Semikron International • Manage Trnspt. (2007-18) • Managing Director Knorr Bremse (2008-14) • sustainable Reg. head / COO at Dematic (2004-07) rolling stock bus. unit (2000-14) • Head of Controlling Schott AG • • Senior roles in projects, operations and Leading general management and growth (2002-08) sales at Siemens and Adtranz / operations roles at Dt. / Daimler Benz Bombardier Trnspt. (1993-2003) Aerospace (1989-1999)

Business and Market Overview

Investor Presentation April 2019 4 The Schaltbau Group at a glance 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 such as new energy, electromobility, DC industry, smart building and autonomous driving  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 2  Listed at Frankfurt Stock Exchange, Prime Standard segment, IPO 1994  30+ subsidiaries in 15+ countries worldwide 1 2018, rounded to full 5%

Investor Presentation April 2019 5 The Schaltbau Group at a glance Schaltbau Group – Investment case  Attractive market environment  Urbanisation and digitisation megatrends are driving demand for new rail vehicles; metro trains with a large number of doors are gaining in importance  Megatrend in energy supply and use towards direct current technology is driving demand for DC switching and charging technology established in the railway sector with increasing use of decentralised energy concepts, energy SMART SOLUTIONS FOR storage systems and smart network control POWER AND MOBILITY  Positioning as innovation driver and essential technology partner in current and future markets such as rolling stock, new energy, electromobility, DC industry, smart home and autonomous driving  Stable customer relationships , especially in the rail sector with often lengthy listing procedures and high repurchase rates  Significant increase in profitability through process improvements, reorganisation and modular development  Inherited risks have been removed from the balance sheet

Investor Presentation April 2019 6 The Schaltbau Group at a glance Schaltbau Group – Business overview HOLDING Components (COM) Mobile Transportation Technology (MTT) Stationary Transportation Technology (STT) ~15% * ~30% * ~55% * ** DC technology for trains, new energy and Door systems for Level crossing systems, electromobility, driver desk equipment trains, buses and automotive point heating systems, shunting equipment * Segmental sales split based on FY 2018 numbers, pre consolidation, rounded to the nearest 5% multiple ** Bode Group represents ~ 45% of Schaltbau Group’s FY 2018 sales

Investor Presentation April 2019 7 Key operating entities Snapshot of Schaltbau Subgroup COM MTT STT ~30% of Group sales * SCHALTBAU Member of the Schaltbau Group • 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, DC industry and smart building • 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 2018, pre consolidation, rounded to the nearest 5% multiple

Investor Presentation April 2019 8 Key operating entities Snapshot of Bode Subgroup COM MTT STT ~45% of Group sales * ** Member of the Schaltbau Group • #1 market leader in Europe and #2 player worldwide in oligopolistic market, strong train entry systems quality track record • Customer range has been expanded by leveraging train door system experience into bus and automotive applications such as Deutsche Post DHL’s electromobility vehicle StreetScooter • Use of sensor technology in entry systems adds digital functionality such as ticketing, passenger counting and enhanced squeeze protection, for use also in future applications such as autonomously driven group transportation units (“people mover”) • Service organisation with high flexibility • Polish subsidiary Rawag contributes best-in-class train windows & interiors and provides additional low-cost production capacity • Reorganisation of production processes well underway, with significant efficiency gains in sight • Good order intake and high sales growth, opportunities to grow in Asia * FY 2018, pre consolidation, rounded to the nearest 5% multiple ** Number does not include contribution of Alte, Sepsa and Schaltbau Refurbishment to MTT segmental sales

Investor Presentation April 2019 9 Key operating entities Snapshot of Pintsch Subgroup COM MTT STT ~15% of Group sales * Member of the Schaltbau Group • Established #3 player in various oligopolistic submarkets such as level crossings, shunting equipment and point heating systems • 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) • Improvement of terms & conditions with large customers ongoing • Stronger focus on key product portfolio • Consolidation of 3 sites into one major operations centre with roadmap established • Performance improved significantly, order intake shows volatility • Benefits from the enormous infrastructure investments recently announced by Deutsche Bahn * FY 2018, pre consolidation, rounded to the nearest 5% multiple

Investor Presentation April 2019 10 Market and competitive environment Megatrends drive sustainable growth in global rail markets Rolling stock Infrastructure & Rail control Megatrends Digitisation / Automation Urbanisation Components / Mobile Transportation Technology Stationary Transportation Technology Emission reductions Connectivity BODE PINTSCH PINTSCH SCHALTBAU Connect Contact Control Safety for Rail The Door Electrification / E-mobility • Market growth : (1) • Market growth : (1) ~2.6% ~2.9% Safety • Market size : (2) • Market size : (2) ~€53bn ~€46bn Globalisation / China Regional market growth (1)(3) • Western Europe: ~2.2% • Asia / Pacific: ~2.5% • NAFTA: ~3.1% • CIS: ~2.7% Regulation and liberalisation • Eastern Europe: ~2.7% • Africa / ME: ~5.2% • Latin America: ~4.8% Source: Unife, Roland Berger (1) Average annual market growth from 2015-17 until 2021-23 over six years (2) Average annual market 2015-2017 (3) Total rail market: Rolling stock, infrastructure, rail control, services and turnkey management

Investor Presentation April 2019 11 Market and competitive environment Railway market with oligopolistic supplier structure in many segments Overall rolling stock OEMs in the rail market Selected suppliers in the Schaltbau rolling stock market (4) / + 1. 2. c. 15% 3. c. 5% 32% Rolling stock 4. c. 5% c. 5% 5. Other OEMs (2) < 5% €163bn (1) 49% 6. Other (3) 7. Market size ~€53bn 19% 8. Infrastructure 9. 10. Source: UNIFE, Company information (1) Total average annual rail market 2015-2017 (2) Incl. Hitachi Rail, Stadler, CAF, Pesa; ABB and Thales Transport not considered (mainly in infrastructure or control command and signalling technology) (3) Services, rail control, turnkey management (4) Combination of GE Transportation and Wabtec businesses still subject to regulatory approvals and other customary closing conditions

April 2019 Investor Presentation 12 Market and competitive environment Market for door systems shows strong growth perspective  Bode is a core Schaltbau Group brand and a specialist in the development and manufacture of electric and pneumatic vehicle door systems for trains, buses and commercial vehicles  All three areas have high development potential within the growth markets of public transport and e-mobility (e.g. entry systems for e-shuttle buses and autonomously-driven people mover)  The best-in-class mechanical quality – Bode door systems are known to be safe, durable and reliable – in combination with intelligent software offers remarkable growth opportunities  World market door systems: *  c. $700m in 2018 for rolling stock alone, is likely to grow to at CAGR of c. 10-15% in the next couple of years, strongly driven by ramp in digital door system functionality  Schaltbau at current has a market share of 30-35% in Europe and 18-20% globally * Schaltbau analysis based on various third party market research and own estimates