| 1 Annual Press Conference 2009 - 31 March 2009 Daetwyler Group Annual Press Conference Analyst...

| 1Annual Press Conference 2009 - 31 March 2009

Daetwyler GroupAnnual Press ConferenceAnalyst Presentation31 March 2009


Annual Review and Outlook

Dr. Paul J. HaelgCEO


German Ifo Business Climate IndexIfo Business Survey for February 2009

Index, 2000= 100, seasonally adjusted

Economic environment: indicators at an all-time low

Swiss PMI – Swiss Purchasing Managers’ IndexPMI in February: 32.6 points


Raw materials:Up and down of oil and copper prices

Crude oil price development:

Copper (US… (raw materials indication) 200 days

Copper price development:


EBIT Margin %Net revenueNet revenue EBITDAEBITDA EBITEBIT

7.4%7.4%3.8%3.8% 5.9%5.9% 9.5%9.5% 10.4%10.4%

+10.3%

+12.9%

+20.7%

Focus on niches pays off sustainably Record earnings from continuing operations

Record earnings driven by profitable growth

CHFm

+27.0%

Profit for the yearProfit for the year

Since 2007, continuing operations excluding the Precision Tubes Division


2008/2007 balance sheet structure

Cash and cash equivalents

Receivables

Inventories

Non-current assets

2008 2007

1 411.91 331.6

Assets CHFm

Currentliabilities

Non-currentliabilities

Equity

Equity ratio

2008 2007

1 331.61 411.9

Liabilities and equity CHFm

70.0%70.0%58.7%58.7%


Return on capital employed 2004 - 2008

Equityin CHFm

Net operatingassetsin CHFm

ROE % (net profit / equity)

RONOA %(EBIT / net operating assets)


Dividend payment

25.3% payout ratio(excl. treasury and unissued shares)

Profit for the year

Proposal to 2008 AGM

Proposed dividend for 2009:CHF 1.80 per bearer share

11

86.3

1122

Profit for the year from continuing operationsProfit distribution in the form of a par value repayment

11

22


Products

Market

Our four divisions

Cables RubberPharmaceutical

PackagingTechnical

Components

Cabling and systems for datacom, safety and elevators

Precision moulded components, special seals and gaskets, sealing technology

Rubber and aluminium/plastic closures

Engineering and electronic com-ponents, specialist and mail order distribution

Non-residential buildings

Automotive,construction, industrial

Pharmaceutical industry

Industry, small to medium-sized businesses


Largely stable market environment – copper write-downs

Highlights

Stable performance in the main markets

Operations in China on track

Market positions expanded further

New strategic direction as a system supplier has met customers’ expectations

Focus on productivity enhancements rather than on capacity expansion

Impacts of copper prices and currencies brought the EBIT margin down from 7.8% to 5.0%

Cables in 2008

Net revenue in CHFmEBIT as % of net revenue

+0.8%

(8.9%)(8.9%) 7.6%7.6% 5.0%5.0%(3.2%)(3.2%) 3.0%3.0%


Cables benchmarking

March 2009 analysis by www.obermatt.com

Revenue growth Slowdown in growth momentum

Peer group: direct peers

Revenue growth



EBIT marginCopper write-downs narrow the EBIT margin

EBIT margin


Demand remaining largely stable – decline expected in the second half

Main factors

Performance still stable in the main markets, with a decline in revenue expected in the second half of the year

Decline in elevator business and cable harnessing

Temporary contracts cancelled, about 70 people working short time at the Altdorf plant from April 2009

Engineering capacity expanded with the acquisition of the SymbioTec operations

Copper write-downs again weighing on the margin for 2009

Cables in 2009


Rubber in 2008

Profitability enhanced – decline in automotive business

Highlights

Growth curbed by decline in automotive business

Consumer goods contract successfully got up and running

Portfolio consistently streamlined

About 170 jobs cut in the Czech Republic and USA

Mexican plant set up and Ukrainian plant expanded

Full project pipeline driven by positioning as a development partner

Focus on core businesses paid off in an EBITmargin of over 10%.


+0.7%

2007 EBIT margin before impairment charges

2.5%2.5% 4.7%4.7% 8.0%8.0% 10.2%10.2%5.9%5.9%


Rubber benchmarking

Revenue growth Growth curbed by slump in automotive business

Analysis March 2009 by www.obermatt.com

Peer group: European Peers

Revenue growth

EBIT margin Portfolio focusing has paid off in a higher EBIT margin

EBIT margin

Peer group: European Peers Analysis March 2009 by www.obermatt.com

2007 EBIT Marge vor Sonderabschreibungen


Rubber in 2009

No recovery expected for 2009 – cost-cutting measures kick in

Main factors

No significant recovery expected for 2009

Programmes to boost economic activity may stimulate demand later in the year

New projects starting in 2009 mean growth for 2010 onwards

Working short time since January and another 30 jobs cut to date

Transfer of production from the USA to Mexicoand shutdown of the plant in Marion (USA) at the end of 2009

Consumer goods contract continuing to grow


Growth ahead of market – raw material costs reduce margin

Highlights

Growth well ahead of the average market growth of 6%

Market development activities and GMP (Good Manufacturing Practice) stepped up further

New Omniflex generation launched

New “FirstLine” clean room production unit commissioned

Margins under pressure due to increasing raw material prices

Slight decline in the EBIT margin to 11.1%

Pharmaceutical Packaging in 2008


+8.6%

13.3%13.3% 11.1%11.1% 11.3%11.3% 11.1%11.1%12.1%12.1%


Pharmaceutical Packagingbenchmarking




Revenue growth Encouraging growth momentum

Revenue growth


EBIT margin EBIT margin in the median range

EBIT margin


Non-cyclical pharmaceutical market - growth expected to slightly outpace the market

Main factors

No significant cost-cutting measures

Focus on certification of “FirstLine” production

Improved margin driven by price increases and falling raw material prices

Automation projects being implemented to increase productivity and quality

Evaluation of “low-cost” locations for less sophisticated products

Pharmaceutical Packaging in 2009


Strategic expansion with ELFA – operational problems at Maagtechnic

Highlights

Growth driven by the consolidation of the ELFA Group

Market slowdown late in the year, more pronounced in Eastern and Northern Europe

Distrelec/ELFA integration projects proceeding to plan

Swiss distribution of Shell lubricants taken over in August

Maagtechnic’s strategic projects now completed

EBIT margin falling to 9.1% due to the lower profit contribution from Maagtechnic

TechnicalComponents in 2008

+19.2%


5.3%5.3% 8.6%8.6% 9.9%9.9% 9.1%9.1%4.3%4.3%


Technical Componentsbenchmarking

Revenue growth High growth momentum driven by acquisitions



EBIT margin Above-average EBIT margin supported by niche positions

Peer group: direct peers March 2009 analysis by www.obermatt.com

Revenuegrowth

EBIT margin


Marked drops in sales revenue – opportunities for acquisitions

Main factors

Marked drops in sales revenue from industrial customers since the beginning of the year

About 40 job cuts at Maagtechnic and about 30 at Distrelec/ELFA planned or already carried out

Working short time in Germany and France, with further restructuring on the cards

Focus on joint catalogue for Distrelec and ELFA

Capitalising on acquisition opportunities

TechnicalComponents in 2009


PY

PY

PY

PY


PackagingTechnical

Components

273.3271.2

154.9153.9

283.2260.8

585.3491.1

5.0 %7.6 %

10.2 %8.0 %

11.1 %11.3 %

9.1 %9.9 %

2.251.99

1.211.60

0.880.75

0.811.33

774781

7121 038

1 3531 317

1 5761 112

Division summary for 2008

Net revenue in CHFm

Capital turnover

EBIT as% of NR

Full-timeequiv.


Market environment in 2009

Q1 run rate

Initiatives in 2009


PackagingTechnical

Components

Demand expected to decline in the second half of the year

Low demand without significant improve-ment

Stable market performance

Declines in business with industrial customers

Cost-cutting measures

Expansion of engineering


Start of new projects

Transfer of US plant to Mexico

Market activities to be stepped up further

Certification of “FirstLine”


Joint Distrelec/ELFA catalogue

Acquisitions

Revenue down 20% (excluding acquisition) – a profit and positive free cash flow

Summary outlook for 2009



PackagingTechnical

Components

Strong regionalniche positions

Strong global niche positions

Strong global niche position

Strong regional niche positions

Implementing a systems approach in the regions

Focusing on sealing technology for global markets (automotive, civil engineering, industrial)

Driving organic growth through geographical expansion, innovation and increased value added

Realising synergy and growth potential from the ELFA acquisition, expansion in Eastern Europe

6 – 9% 7 – 9% 11 – 14% 9 – 12%

Strategic priorities and medium-term EBIT targets remain unchanged

Strategicobjectives

Strategicpriorities

EBIT range(medium-term)


Intact business opportunity

Cyclicality reduced by the portfolio realignment during the boom phase Precision Tubes Division sold Mail order distribution expanded with the ELFA acquisition

Pharmaceutical Packaging Division having a stabilising effect as a non-cyclical business generating about 25% of Group revenue

Strong market positions supported by consistent focus on niches

Robust balance sheet and high liquidity

Capitalising on acquisition opportunities: Strategically expanding the Technical Components and Pharmaceutical

Packaging Divisions Consolidating the Cables and Rubber Divisions Extending portfolios


Disclaimer

This presentation contains forward-looking state-ments that reflect the Group’s current expectations regarding market conditions and future events and are therefore subject to a number of risks, uncertain-ties and assumptions. Unanticipated events could cause actual results to differ from those predicted and from the information contained in this presen-tation. All forward-looking statements in this presen-tation are qualified in their entirety by the foregoing.

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