Year of contrasts, characterized by change and consolidation

Dec 06, 2016

Media Release


Year of contrasts, characterized by change and consolidation

Market weakness in Power Magnetics weighs on sales and earnings

Luterbach, Switzerland, 6 December 2016  –  Sales of the Schaffner Group decreased by 8% in fiscal year 2015/16 to CHF 185.6 million, from CHF 201.8 million in 2014/15, the prior fiscal year (PY). On a local-currency basis the difference was 8.5%. The main reason was market weakness in the Power Magnetics division. The negative volume effect weighed on gross margin, which eased by 2.5 percentage points to 25.6% (PY: 28.1%). The Schaffner Group's operating profit (EBIT) was CHF 1.6 million (PY: CHF 10.8 million), with an EBIT margin of 0.8% (PY: 5.4%). The EBIT result includes restructuring expenses of CHF 4.6 million in the Power Magnetics division. The Group earned net profit for the period of CHF 0.4 million (PY: CHF 7.7 million), representing earnings per share of CHF 0.61 (PY: CHF 12.14). Schaffner believes that the bottom of the trough has been passed. In the year under review the Group booked new orders worth CHF 187.4 million (PY: CHF 196.2 million) and had a book-to-bill ratio of 1.01 (PY: 0.97).


Contrasting trends in the three divisions

The EMC division strengthened its leading international market position in the fiscal year, despite a slight reduction of 1.6% in sales to CHF 93.8 million (PY: CHF 95.3 million). The sales result was explained largely by low demand in the photovoltaic sector, notably in Japan, and by sustained high cost pressure especially also with European customers. The segment profit of CHF 8.9 million (CHF 9.1 million) includes significant expenditures for the expansion of the power quality business. The power quality activities continued to grow vigorously, with sales expanding by 34% in fiscal year 2015/16.


Sales of the Power Magnetics division slumped in the year under review. With a sales decline of 28.7% to CHF 45.4 million (PY: CHF 63.6 million), Power Magnetics registered a segment loss of CHF 9.2 million (PY: profit of CHF 1.6 million). A positive trend in the year was witnessed particularly in demand from China's wind turbine industry. In all other regions the division was hurt by the effects of weak demand from the drive systems, photovoltaic and rail technology sectors.


An excellent performance was delivered by the Automotive division. Its sales grew by 8.3% to a new total of CHF 46.4 million (PY: CHF 42.8 million). Segment profit rose to CHF 11.3 million (PY: CHF 6.3 million), with the segment profit margin increasing to 24.5% (PY: 14.6%). Demand for antennas for keyless entry systems remained high in the fiscal year. Schaffner is the global number two in the market for such antennas and has built a strong position internationally as a partner to the auto industry.


Financial results adjusted after conversion to Swiss GAAP FER

The consolidated financial statements of the Schaffner Group were converted from International Financial Reporting Standards (IFRS) to Swiss GAAP FER (FER) with retrospective effect from 1 October 2015. As part of these accounting and reporting changes, goodwill and intangible assets arising from acquisitions are now offset against equity, and pension obligations have been revalued. At the reporting date of 30 September 2016, total assets stood at CHF 123.3 million (30 September 2015: CHF 131.6 million). Net working capital increased to CHF 34.1 million (PY: CHF 32.3 million) and net debt rose to CHF 16.0 million (PY: CHF 15.1 million). With shareholders’ equity of CHF 46.8 million (PY: CHF 50.4 million), the equity ratio of 37.9% (PY: 38.3%) was within the target range. Equity per share came to CHF 73.58 at the balance sheet date (PY: CHF 79.24). The Schaffner Group generated free cash flow of CHF 2.4 million in fiscal year 2015/16 (PY: CHF 3.8 million).


Proposals for the 21st Annual General Meeting

In addition to the recurring agenda items, the Board of Directors of Schaffner Holding AG will propose the following resolutions to shareholders at the Annual General Meeting on 12 January 2017:

  • Forgo payment of a dividend
  • Election of Urs Kaufmann and Philipp Buhofer as new members of the Board of Directors, and election of Urs Kaufmann as new Chairman of the Board of Directors and member of the Compensation Committee


The complete notice of the Annual General Meeting will be published by Schaffner Holding AG on 15 December 2016 in the Swiss Official Gazette of Commerce (SHAB) and on the Schaffner investor relations website at



The developments in the Schaffner Group’s key markets, the geopolitical environment and the situation in currency markets remain demanding. For the medium term, Schaffner reaffirms its organic growth target of more than 5% per year for sales and an EBIT margin of 8%.


Annual report

The full Schaffner annual report 2015/16 is available at



The webcast of the presentation of Schaffner’s full-year results for 2015/16 is available from 10:15 a.m. CET, 6 December 2016 at



Kurt Ledermann

Interim Chief Executive Officer

Chief Financial Officer

T +41 32 681 66 08


Key financials

In CHF ‘000except % and per-share data



Net sales



Net sales, EMC division



Segment profit, EMC division



Net sales, Power Magnetics division



Segment (-loss)/profit, Power Magnetics division



Net sales, Automotive division



Segment profit, Automotive division



Operating profit (EBIT)



In % of net sales



Net profit for the period



In % of net sales



Earnings per share in CHF



Total assets



Net working capital



Free cash flow



Net debt



Equity ratio in %



Shareholders’ equity per share in CHF



Repayment of excess share premium in CHF per share



1Subject to approval by the Annual General Meeting on 12 January 2016.


Financial calendar

12 January 2017

21st Annual General Meeting

11 May 2017

Publication of half-year report 2016/17

7 December 2017

Publication of annual report 2016/17

11 January 2018

22nd Annual General Meeting