Through its focus on growth markets, significant development investment and complementary acquisitions, the Schaffner Group has achieved average annual sales growth of about 8% in local currency terms since 2005. At its Investor Day held in Zurich on 24 September, the firm explained how this growth is to be continued. Schaffner aims to almost double group sales to CHF 400 million by Fiscal Year 2019/20.
“Schaffner has considerably strengthened its capabilities in recent years,” said Alexander Hagemann, Chief Executive Officer, at the Investor Day. “We have managed to enter the growing power quality market, are outstandingly well positioned in Asia, have substantially strengthened innovation and increased plant productivity. We have also successfully completed several acquisitions. Schaffner is well positioned for its targeted growth track of the coming years.”
A world leader in electromagnetic and power electronic solutions, the Group describes its product range as Shaping Electrical Power: components, systems and services that give shape to electrical power and ensure the efficiency and reliability of power electronic systems.
Over the strategy's time horizon, the focus will be on the accelerated growth of the Power Magnetics division and Power Quality business unit. This is to be achieved through product innovation, more intensive market development in North America as well as a faster acquisition rate. In the mature EMC filter market, Schaffner sees potential to bolster its leading position further by leveraging its competitive strengths.
After considering the strategic options for the Automotive division, the Board of Directors of the Schaffner Group decided to realize the growth opportunities in the market for keyless entry systems and electric vehicles within the Schaffner Group. Sustained market growth and Schaffner's competitive strengths make this an attractive business also in the future.
Schaffner's global production network will be further optimized: the merger of the two plants in the US was already announced several weeks ago and is currently being implemented. The partial automation of production in Asia will be continued, which alongside cost optimization will also improve product quality as part of a zero defect strategy.
As a result of the strategic measures, the firm expects organic annual sales growth of over 5%, which it aims to significantly increase through acquisitions. It is targeting an operating EBITA margin (EBIT before acquisition-related amortization) that is regularly above 8% and a return on capital employed (ROCE) that continues to clearly exceed the weighted average cost of capital (WACC).
Luterbach, 24 September 2015
8 December 2015
Publication of Annual Report 2014/15 (full-year results)
12 January 2016
20th Annual General Meeting
Presentation – Investor Day 2015
The full presentation on Investor Day 2015 is available at: