schweiter bmk 7.3...sem 1 2007 sem 2 2007 total 2007 total 2006 % orders received 258.2 233.7 491.9...

1

Group Group Group Group Results Results Results Results 2007200720072007

Schweiter TechnologiesSchweiter TechnologiesSchweiter TechnologiesSchweiter Technologies

Annual Media Conference

March 7, 2008

Hotel Marriott, Zurich

2


� 1. Welcome and Introduction

2. Results 2007

3. Division Information

4. Outlook

ContentContentContentContent

3


Highlights Highlights Highlights Highlights

� Group revenues and earnings at record level

� Optics to dominate Schweiter Technologies with > 50% of revenues

� Optics with EBIT > CHF 42 Mio. (15% margin)

� SSM Textile machinery with successful product launches

� Ismeca Semiconductor with good volume and significantly improved profitability

� Strong balance sheet with Net Cash CHF 120 Mio. and improved net assets

4


Revenues: 105 MCHF Employees: 230

Revenues: 110 MCHFEmployees: 300

Revenues: 270 MCHFEmployees: 410

One Group One Group One Group One Group ---- Three Three Three Three Leading Leading Leading Leading DivisionsDivisionsDivisionsDivisions

Satisloh

IsmecaSemiconductor

SSM Textile Machinery

5


EssentialsEssentialsEssentialsEssentials

� High tech machinery maker with leading market/technology positions in all divisions

� Balanced portfolio of cash flow driven and growth oriented businesses

� Selective acquisitions into growth industries

� Healthy balance sheet and strong financing capabilities

� Lean structure – focus on design, marketing and service

� Constant innovation as key value driver for growth and future cash flows

� Aggressive market penetration

� Expertise in supply management

� Cooperations with best partners worldwide

6


22%22%22%22%

55%55%55%55%

23%23%23%23%

TEX OPT SEM

Less CyclicalLess CyclicalLess CyclicalLess Cyclical, , , , EmphasisEmphasisEmphasisEmphasis in in in in Optics Optics Optics Optics

Split of revenues 2007

7


Content Content Content Content

1. Welcome and Introduction

� 2. Results 2007


4. Outlook

8


in CHF Mio.

Sem 1

2007

Sem 2

2007

Total

2007

Total

2006 %

Orders received 56.4 50.8 107.2 108.4 -1%

Revenues 53.9 53.0 106.9 104.8 2%

EBIT 6.2 4.8 11.0 12.4 -11%

%-Revenues 11.5% 9.1% 10.3% 11.8%

Employees (end of period) 235 223 5%

SSM Textile SSM Textile SSM Textile SSM Textile Machinery Machinery Machinery Machinery

9


SSM Textile SSM Textile SSM Textile SSM Textile Machinery Machinery Machinery Machinery

� Sales mainly driven by Indian subcontinent and Turkey, China stable.

� Strong demand in air texturing and monofilament (PW 2) continuing.

� EBIT affected by increased R&D cost for product innovations

� Successful product launches at ITMA

� Extended sourcing in Eastern Europe and China. Output of assembly unit in China increased to > 5000 spindles

10


in CHF Mio.

Sem 1

2007

Sem 2

2007

Total

2007

Total

2006 %

Orders received 141.1 132.0 273.1 254.0 8%

Revenues 125.8 144.2 270.0 242.3 11%

EBIT 16.6 25.8 42.4 26.0 63%

%-Revenues 13.2% 17.9% 15.7% 10.7%

Employees (end of period) 411 430 -4%

Satisloh Satisloh Satisloh Satisloh

11



� Strong volume increase in coating and consumables: Coating +39%, consumables +11%. Surfacing at previous year’s level (+49% in 2006)

� US most important market with again >20% growth and around 50% of sales

� High volume in Europe kept, Asia growing +19%

� Direct surfacing technology growing with 10%-15% p.a.

� EBIT margin increased to >15%

12


Ismeca Semiconductor Ismeca Semiconductor Ismeca Semiconductor Ismeca Semiconductor

in CHF Mio.

Sem 1

2007

Sem 2

2007

Total

2007

Total

2006 %

Orders received 60.7 50.9 111.6 114.6 -3%

Revenues 54.7 55.6 110.3 113.5 -3%

EBIT 0.6 4.6 5.2 -0.2 -

%-Revenues 1.1% 8.3% 4.7% -


13



� Strong revenue in 2007 thanks to successful development of key markets, e.g. China

� Improved profitability driven by strong top line combined with significant improvement in fix cost and gross margin

� Ramp up of new equipment manufacturing factory in Malaysia completed in H2/2007

� New equipment retrofit and supply chain sourcing center opened in Suzhou, China

� Swiss facility in La Chaux-de-Fonds focus on innovation and customer specific equipment manufacturing

14


Group Group Group Group

in CHF Mio.

Sem 1

2007

Sem 2

2007

Total

2007

Total

2006 %

Orders received 258.2 233.7 491.9 477.0 3%

Revenues 234.6 253.0 487.6 461.0 6%

EBIT 22.3 33.3 55.6 37.3 49%

%-Revenues 9.5% 13.2% 11.4% 8.1%

Net Income 21.2 28.5 49.7 33.4 49%


15


164164164164 169169169169186186186186

171171171171

4646464651515151

78787878134134134134

55555555

5555

5555

46464646 27272727

33333333

28282828

2004200420042004 2005200520052005 2006200620062006 2007200720072007

240240240240

203203203203174174174174

160160160160

6666

84848484

89898989

75757575 95959595

3333

14141414

10

2007200720072007 2006200620062006 2005200520052005 2004200420042004

Net assets

Cash

Other

Goodwill Other

Loans

Equity

StrongStrongStrongStrong Balance Balance Balance Balance Sheet Sheet Sheet Sheet

16


Balance Balance Balance Balance Sheet Sheet Sheet Sheet Highlights Highlights Highlights Highlights

� Cash position 134 Mio. CHF

� Net Assets 171 Mio. CHF (reduced due to sale of building and overall lower net assets in OPT)

� Interest bearing liabilities 14 Mio. CHF

� Goodwill 5 Mio. CHF

� Shareholders‘ Equity 240 Mio. CHF

� Equity ratio 63%

17


ContentContentContentContent


2. Results 2007

� 3. Division Information

4. Outlook

18


SSM Textile SSM Textile SSM Textile SSM Textile MachineryMachineryMachineryMachinery

DP5

19


Strong Niche PositionsStrong Niche PositionsStrong Niche PositionsStrong Niche Positions in in in in the Productionthe Productionthe Productionthe Production ChainChainChainChain

dye package winding

dyeing

staple yarnsstaple yarnsstaple yarnsstaple yarns filament yarnsfilament yarnsfilament yarnsfilament yarns

knitting / warp knitting:apparel, sport and leisure wear, socks, hosiery, automotive, etc.

weaving:apparel, shirts and blouses, linen, curtains, automotive,

etc.

yarn production

twisting

yarn finishing

fabric production(end-uses)

assembly winding

extrusion

spinningfalse twist texturing

air jet textu-ring

drawing

twisting

conventional covering

air covering

mercerising(singeing)

re-winding

All blue marked areas are supported by SSM equipment

20


Mögliche Stossrichtungen

SSM Feingarnbereich

SSM In SSM In SSM In SSM In TheTheTheThe Textile Textile Textile Textile Value Value Value Value Chain: Growth Chain: Growth Chain: Growth Chain: Growth OpportunitiesOpportunitiesOpportunitiesOpportunities

21


TK2/20: New TK2/20: New TK2/20: New TK2/20: New Machine Platform for Sewing Thread Machine Platform for Sewing Thread Machine Platform for Sewing Thread Machine Platform for Sewing Thread

22


10 Local service stationsand over 80 agencies worldwide

HorgenHorgenHorgenHorgenBejingBejingBejingBejing

HongHongHongHong KongKongKongKong

SpartanburgSpartanburgSpartanburgSpartanburg

Fort LauderdaleFort LauderdaleFort LauderdaleFort Lauderdale

ZhongshanZhongshanZhongshanZhongshan

Strong Strong Strong Strong Global Global Global Global PresencePresencePresencePresence

Sales & Service

Sales, Manufacturing, Service

IstanbulIstanbulIstanbulIstanbul

CoimbatoreCoimbatoreCoimbatoreCoimbatore

Sao Paulo

23


0

20

40

60

80

100

120

2003200320032003 2004200420042004 2005200520052005 2006200620062006 20072007200720070

5

10

15

20

25

2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007

RevenuesRevenuesRevenuesRevenues OperatingOperatingOperatingOperating EarningsEarningsEarningsEarningsin Mio. CHF

in Mio. CHF

SSM Textile SSM Textile SSM Textile SSM Textile MachineryMachineryMachineryMachinery

24


25


StrengthsStrengthsStrengthsStrengths and Key and Key and Key and Key Success FactorsSuccess FactorsSuccess FactorsSuccess Factors

� Thorough understanding and expertise in ophthalmic business - high skill level in precision optics

� Market driven innovation, leading in technology

� Only company able to offer complete solutions for all lab sizes

� Truly global presence in sales, service, and logistics

� Competitive edge through supply chain management –flexibility and lower costs with worldwide networks

26


World World World World Ophthalmic Lens Ophthalmic Lens Ophthalmic Lens Ophthalmic Lens MarketMarketMarketMarket

WORLD OPHTHALMIC LENS MARKET

(Million Lenses)

0

100

200

300

400

500

600

700

800

900

1000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Progressive Rx (CAGR +4.7%)

Bi-Focal Rx (CAGR -4.1%)

Single Rx (CAGR +0.7%)

Single Stock (CAGR +0.7%)

Total (CAGR +0.6%)

WORLD OPHTHALMIC LENS MARKET

(Million €)

0

1000

2000

3000

4000

5000

6000

7000

8000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Progressive Rx (CAGR +7.1%)

Bi-Focal Rx (CAGR -4.3%)

Single Rx (CAGR +0.0%)

Single Stock (CAGR +0.4%)

Tota (CAGR +3.0%)l

27


De-blocking

Rx CalculationSoftware

Control

CoatingFinishing

Cleaning

Polishing

ProtectingBlocking

All-FormatLab-ServerSoftware

Consumables

& tools for all

process steps

JobManagement

Calculation

Coated &edged lens Cleaning

All-Format Generating

28


Changes in Priorities … and TechnologiesChanges in Priorities … and TechnologiesChanges in Priorities … and TechnologiesChanges in Priorities … and Technologies

Consolidation of customersConsolidation of customersConsolidation of customersConsolidation of customers

� Lens manufacturers buy independent Rx labs (USA, starting in Asia)

� Lens manufacturers merge

Transition fromTransition fromTransition fromTransition from

� Conventional milling and polishing with hard lap tools

� To direct surfacing with automated polishing using soft tools

Benefits of direct surfacing (30% of all PAL in 5 years) for labBenefits of direct surfacing (30% of all PAL in 5 years) for labBenefits of direct surfacing (30% of all PAL in 5 years) for labBenefits of direct surfacing (30% of all PAL in 5 years) for labssss

� Individualized progressive

� Customized/in-house progressives

� Own branding

Investments focus on value added productsInvestments focus on value added productsInvestments focus on value added productsInvestments focus on value added products

� Direct surfacing

Growth of antiGrowth of antiGrowth of antiGrowth of anti----reflection coatings (unchanged)reflection coatings (unchanged)reflection coatings (unchanged)reflection coatings (unchanged)

29


Trend in Surfacing to “Free Form”Trend in Surfacing to “Free Form”Trend in Surfacing to “Free Form”Trend in Surfacing to “Free Form”

0

10

20

30

40

50

60

70

80

2005 2006 2007

Re

ve

nu

es

m/c

su

rfa

cin

g i

n M

CH

F

Free From Traditional surfacing Edgers Blockers

30


Conventional Manufacturing of ProgressivesConventional Manufacturing of ProgressivesConventional Manufacturing of ProgressivesConventional Manufacturing of Progressives

� Task

� Casted, progressive front surface

� Apply a toric surface according to the prescription

Lens

Milling

tool

Milling(Material removal, speed)

Lens

Polishing and Final Geometry

Rig lap tool

5’000 to 10’000 different tools

31


Direct Surfacing (Lathing, Progressive Lenses)Direct Surfacing (Lathing, Progressive Lenses)Direct Surfacing (Lathing, Progressive Lenses)Direct Surfacing (Lathing, Progressive Lenses)

� Task

� Casted, spherical front surface

� Apply a Direct Surfacing surface at the back combining progressive and prescription part

Lens Milling

Tool

Milling Step(material removal, speed)

Direct Surfacing Surface(final geometry, surface roughness)

Lens Fast Tool

32


Leading Direct Surfacing PlatformsLeading Direct Surfacing PlatformsLeading Direct Surfacing PlatformsLeading Direct Surfacing Platforms

• VFT Compact– 40 lenses p.h. toric

– 30 lenses p.h. free form

– Manual operations

• VFT Ultra/Ultra-S– 60-140 lenses p.h. toric

– 90 lenses p.h. free form

– Automatic loading

33


Complete Offering Precision OpticsComplete Offering Precision OpticsComplete Offering Precision OpticsComplete Offering Precision Optics

Grinding Polishing

Processing Centre for spheres, aspheres, prisms, cylinders etc.Up to Ø 500 mm

7-axis Aspheric PolisherFor ground or polished lenses Up to Ø 200 mm

34


TayloredTayloredTayloredTaylored Systems: High Systems: High Systems: High Systems: High Volume Volume Volume Volume and Small Labs and Small Labs and Small Labs and Small Labs

40 - 200 lenses per hour60‘ AR both sidesLab Operation

Box Coating

16 lenses per hour15‘ AR both sidesStore Operation (15‘, 1 m2)

Sputtering

35


StrongStrongStrongStrong Global Global Global Global Presence Presence Presence Presence

GermantownGermantownGermantownGermantown

DallasDallasDallasDallas

BoltonBoltonBoltonBoltonParisParisParisParis

BarcelonaBarcelonaBarcelonaBarcelona MilanMilanMilanMilanWetzlarWetzlarWetzlarWetzlar

MumbaiHongHongHongHong KongKongKongKongChinaChinaChinaChina

12 service locations, 70 service technicians, 3 logistic centres

Sales & Service

Sales, Manufacturing, Service

36


Key Key Key Key Accounts Accounts Accounts Accounts

37


0

50

100

150

200

250

300

2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007

0

5

10

15

20

25

30

35

40

45

2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007

RevenuesRevenuesRevenuesRevenues**** OperatingOperatingOperatingOperating EarningsEarningsEarningsEarnings****in Mio. CHF in Mio. CHF


* Loh included as of 2005

38


39


Ismeca SemiconductorIsmeca SemiconductorIsmeca SemiconductorIsmeca Semiconductor VisionVisionVisionVision

Be a global leader

for back-end finishing process,

by providing best value solutions

to our customers –

through leading technology

and long-term committed support

40


Ismeca Semiconductor Ismeca Semiconductor Ismeca Semiconductor Ismeca Semiconductor Equipment Equipment Equipment Equipment covers the covers the covers the covers the Finishing Process Finishing Process Finishing Process Finishing Process of a Wide of a Wide of a Wide of a Wide Package Variety Package Variety Package Variety Package Variety

DiscretesDiscretesDiscretesDiscretesPower Power Power Power discretesdiscretesdiscretesdiscretes

Small Small Small Small outletoutletoutletoutletICsICsICsICs ICsICsICsICs DiesDiesDiesDies LEDLEDLEDLED

ElectricalElectricalElectricalElectrical TestTestTestTest

component contacting and(testing)

MarkingMarkingMarkingMarking

Laser marking/ inspection

LeadLeadLeadLead/surface /surface /surface /surface inspectioninspectioninspectioninspection

2D, 3D, 5S co-planarity, surface

TapingTapingTapingTaping

Tape, Tube, Tray

41


Full Range of Full Range of Full Range of Full Range of Products Offered Products Offered Products Offered Products Offered

Key Competences

Segments

Products

Sub-Segments

Functions

Discretes

Test Laser mark InspectSort Tape & reel

ICs Dies

Discrete

Power

SOIC

QFN small

Bare die

Bumped die

Handling of small parts

Contacting

Vision

SOIC

QFN small & large

Test Laser mark InspectSort Tape & reel

Inspect SortTubeTrayTape & reel

Pick from wafer

Test InspectFlip Tape & reel

Process integration

Contacting

Vision

Flexible handling

3D vision

Handling of small dies

Contacting

Vision

LED

Power

Multi-LED

Process integration

Sorting

Vision

Test Spectr. integr.

InspectSortTape & reel

42


Global Global Global Global Presence Presence Presence Presence in All Key in All Key in All Key in All Key Semiconductor Markets Semiconductor Markets Semiconductor Markets Semiconductor Markets

CarlsbadCarlsbadCarlsbadCarlsbad

La La La La ChauxChauxChauxChaux----dededede----FondsFondsFondsFonds

MelakaMelakaMelakaMelaka

SuzhouSuzhouSuzhouSuzhou

Sales & Service

Manufacturing

43


Ismeca Serves Ismeca Serves Ismeca Serves Ismeca Serves Most Key Most Key Most Key Most Key Players Players Players Players in in in in Semicon Semicon Semicon Semicon

ON Semiconductor

Semiconductor

Component Group

44


0

20

40

60

80

100

120

2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007 -10

-8

-6

-4

-2

0

2

4

6

8

10

2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007

RevenuesRevenuesRevenuesRevenues OperatingOperatingOperatingOperating EarningsEarningsEarningsEarningsin Mio. CHF in Mio. CHF


45


Content Content Content Content


2. Results 2007


� 4. Outlook

46


0

100

200

300

400

500

600

2003200320032003 2004200420042004 2005200520052005 2006200620062006 20072007200720070

10

20

30

40

50

60

2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007

RevenuesRevenuesRevenuesRevenues OperatingOperatingOperatingOperating EarningsEarningsEarningsEarnings

in Mio. CHF in Mio. CHF

Group Performance Group Performance Group Performance Group Performance

47


0

100

200

300

400

500

600

2003200320032003 2004200420042004 2005200520052005 2006200620062006 20072007200720070%

10%

20%

30%

40%

50%

60%

2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007

Revenues Revenues Revenues Revenues per per per per HeadHeadHeadHead Net Assets Net Assets Net Assets Net Assets in % of in % of in % of in % of RevenuesRevenuesRevenuesRevenues

in TCHF

Group Performance Group Performance Group Performance Group Performance

48


Development EarningsDevelopment EarningsDevelopment EarningsDevelopment Earnings per Share per Share per Share per Share

-40.0

-35.0

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

EPS in CHF

Textile Textile Textile Textile onlyonlyonlyonly ShiftShiftShiftShift////OpticsOpticsOpticsOptics„„„„BubbleBubbleBubbleBubble“/“/“/“/WorkoutWorkoutWorkoutWorkout

49


Portfolio Portfolio Portfolio Portfolio Strategy Strategy Strategy Strategy

StrengthsStrengthsStrengthsStrengths ThreatsThreatsThreatsThreats OpportunitiesOpportunitiesOpportunitiesOpportunities

TEXTEXTEXTEX √√√√ Strong market position ֠ Market declining �� Asian manufacturing√√√√ Sustainable free cash flow � � � � Emerging local markets (CN, IN)√√√√ Lean structure � � � � Selective acquisitions

OPT OPT OPT OPT √√√√ Dominant market leader ֠ Market dominance �� Exploring Asian markets√√√√ Full solution provider �� Selective acquisitions√√√√ Strong key accounts �� Growth in precision

optics

SEM SEM SEM SEM √√√√ Market & technology ֠ Market cycles � � � � New applicationsleader �� Asian manufacturing

√√√√ Global organization√√√√ Strong key accountmanagement

50


0

100

200

300

400

500

600

1996 1999 2002 2007

Revenues in Mio. CHF

Group Evolution: Group Evolution: Group Evolution: Group Evolution: RevenuesRevenuesRevenuesRevenues

Textile

Optics

Semicond.

51


Transformation Transformation Transformation Transformation into into into into a Global Company a Global Company a Global Company a Global Company

0%

10%

20%

30%

40%

1995 1999 2007

Americas

Asia

as % of total employees

52


Business Outlook 2008 Business Outlook 2008 Business Outlook 2008 Business Outlook 2008

SSM Textile MachinerySSM Textile MachinerySSM Textile MachinerySSM Textile Machinery

- Good order intake at beginning of 2008

- Last year’s volume expected

- Close down of site in Wuppertal, Germany and integration of business activities in Horgen. Expected cost in a low million CHF range

SatislohSatislohSatislohSatisloh

- Keep strong volume of 2007

- R&D investments and tight cost control

- Extend position in direct surfacing and Asian sourcing

IsmecaIsmecaIsmecaIsmeca SemiconductorSemiconductorSemiconductorSemiconductor

- Strong backlog and improved cost structure to secure positive Q1/08

- Further development in key markets (e.g. retrofit manufacturing in China) and segments (LED, bare die, HF components)

- Improvement plan to be completed in H1/08: focus on innovation and manufacturing efficiency

53


This document is for presentation purposes only and should not bThis document is for presentation purposes only and should not be construed as an offer, invitation or solicitatione construed as an offer, invitation or solicitation

to subscribe for purchase or sell any investment and neither it to subscribe for purchase or sell any investment and neither it nor anything it contains shall form the basis of anynor anything it contains shall form the basis of any

contact whatsoever.contact whatsoever.

Opinions expressed herein reflect the current judgment of the maOpinions expressed herein reflect the current judgment of the management of nagement of SchweiterSchweiter Technologies. The Technologies. The

presentation contains forwardpresentation contains forward--looking statements that involve risks and uncertainties. The actlooking statements that involve risks and uncertainties. The actual result ofual result of

SchweiterSchweiter Technologies may differ materially from those anticipated in thTechnologies may differ materially from those anticipated in these forwardese forward--looking statements andlooking statements and

forecasts as a result of a number of factors.forecasts as a result of a number of factors.

The management of The management of SchweiterSchweiter Technologies does not accept any liability whatsoever with respTechnologies does not accept any liability whatsoever with respect to the useect to the use

of this presentation.of this presentation.

Disclaimer Disclaimer Disclaimer Disclaimer

schweiter bmk 7.3...sem 1 2007 sem 2 2007 total 2007 total 2006 % orders received 258.2 233.7 491.9...

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