smt scharf ag• smt scharf brand • suspended monorails or floor-bound duorails • flame-proof...

SMT Scharf AG

German Equity Forum 2011 Investor presentation

November 22, 2011

November 2011 |

1 SMT Scharf AG – Overview

2 Markets & strategy

3 Financials

4 Reasons to invest

Contents

November 2011 |

The group at a glance

• Global market leader and technology leader for rail-bound railway systems which are used primarily in underground hard coal mines and ore mines

• Other main products include roadheaders, chairlifts and roadway supports

• Specialist engineering company with >50 years experience and global presence

• Profitable and with strong medium-term growth potential

• Growth supported by global trend toward automation and higher safety standards in mines

Well-established, profitable business model

Rising share of foreign revenues

42.1

28%

72%

51.9

40%

60%

48.7

52%

48%

51.2

74%

26%

49.7

75%

25%

53.3

84%

16%

66.7 mn€

91%

9%2004 2005 2006 2007 2008 2009 2010

Other countries Germany

SMT Scharf AG – Overview | Markets & strategy | Financials | Reasons to invest

November 2011 |

Product areas

Rail-bound railways• SMT Scharf brand• Suspended monorails or

floor-bound duorails• Flame-proof diesel or

electric motors• Friction wheel drives, rack

and pinion drives or a combination of both

• Broad range of lifting beams and other accessories

SMT Scharf has expanded beyond its core product area of rail-bound railways

Roadheaders• Dosco brand• Medium to heavy duty

roadheaders• Continuous miners• Back-hoe loaders• Broad range of options

including conveyors, bolters etc.

Others• SMT Scharf, Sareco and

Hollybank brands• Chairlifts• Hydraulic drives• Roadway supports• Heavy duty transporters• Retrievers• etc.


November 2011 |

Locations and partners

SMT Scharf has built up a global presence

SMT Scharf subsidiaries


Joint ventures Dealerships / representatives

November 2011 |



3 Financials

4 Reasons to invest

Contents

November 2011 |

QuantitiesItem weight

Rail-bound railways

Conveyors

Winches

Load haul dumpers

Mining railways

Routes• Inclines• Curves• Flexibility

Chair-lifts

Rail-bound railways are particularly suited for demanding routes

Underground transport technologies


November 2011 |

Competitive position in rail-bound railways

Competitive advantages

• Sole provider of both diesel and electro-cats

• Broadest market coverage and 39% market share

• Technology leader• High engine power • Superior rack and pinion systems• Low operating costs• Low costs for maintenance and

repairs

SMT Scharf's market share (%)

100

Ø 39

Poland

China

Russia

South Africa

Germany

Others

100

20

42

29

SMT Scharf is world-wide market leader and technology leader


35

November 2011 |

Product example: Diesel cat with lifting beam

Flame-proof diesel motor for hard coal mining

High maneuverability down to 4 m horizontal radius

Rail-bound system Extremely short emergency braking distance (<6 m)

Capacity for loads of up to 45 t

Modular structure for flexible use

SMT Scharf's railway systems offer unique benefits for mine operators


Eventuell neues Bild

November 2011 |

Continuous innovation

New products since 2007


November 2011 |

New heavy duty transporter based on the railways’ drive technology

The family‘s youngest member


November 2011 |

SMT Scharf‘s customer segments*

Hard coal is the most important segment across product areas

Commodities Regions


* Average 2008-2010, in % of revenue

Others: 8

Gold and Platinum: 21

Hard coal: 71

Other: 15

Russia and other CIS countries: 14

Poland: 16

Africa: 22

China: 17

Germany: 16

November 2011 |

Reference customers

International portfolio of customers with further growth potential

AngloGold Ashanti

DTEKXstrataCodelco Kompania Weglowa Singareni

China CoalSeverstalBogdankaHarmony Gold

XinwenRaspadskaya

SUEK Datong

UK Coal

YCRT

RAG

Baja Mining

AHMSA

Impala Platinum


November 2011 |

• Estimates for future growth differ depending upon commodity and region

• Investment in mining equipment forecast by Freedonia Group to grow by 5% p.a. on average

Annual growth in commodity production (2000-2009)

2.0%

Gold

Hard Coal

Copper

Platinum 1.3%

5.7%

-0.9%

Sources: World Coal Institute, US Geological Survey, Johnson Matthey

Mining production and associated investment will grow further


November 2011 |

Strategy

Consistent use of market opportunities

Expansion of international market presence

Expansion of product range

Standardization of product range

Acquisitions

• Expand local sales and service offices• Approach new geographical markets• Promote leasing offers

• Improve drive technology, controls and diagnostic tools• Increase ratings of existing designs• Develop new low-cost applications

• Enable shorter lead times• Expand local production

• Supplement existing product range or technologies• Complement SMT Scharf‘s international orientation


November 2011 |



3 Financials

4 Reasons to invest

Contents

November 2011 |

Comments

9 months 2011 (in EUR thousand)

Significant increase in revenue and EBIT so far this year

• Strong demand from China, already strongest market of SMT Scharf in 2010

• Order backlog up by 100%

• Increasing material costs and sales-related costs (freight, foreign exchange, etc.)

• Extended project times due to increasing lead times for components

• Lower average tax rate


November 2011 |

Current provisions and liabilities

Equity

12/2010

Advance payments

Long-term provisions

21.5

46.2

7.3

5.7

9/2011

Liabilities and shareholders‘ equity (in %)

• Increase in equity due to current profits and share transfer

• Reduction in the UK pension deficit due to the share transfer

Comments

19.3

21.7

49.9

6.8

8.8

12.8

Mezzanine

Increase of the equity ratio further strengthens the balance sheet

67.2 mn€ 72.6 mn€


November 2011 |

Inventories

Non-current assets

12/2010

Cash / securities

Current receivables / other assets

9/2011

• Some decrease in customer receivables compared to December 2010

• Significant increase in inventories for new orders

• Continued strong cash position

Comments

Assets (in %)

22.9

24.7

36.9

15.5

19.2

22.5

27.5

30.8

67.2 mn€ 72.6 mn€

Working capital has shifted


November 2011 |

1 SMT Scharf AG - Overview


3 Financials

4 Reasons to invest

Contents

November 2011 |

SMT Scharf‘s share

SMT Scharf’s share consistently performed better than the SDAX


November 2011 |

SMT Scharf‘s share (II)

Key share data Dividends (in €/share)

Since the IPO SMT Scharf has paid its shareholders high dividends


Shareholder structure

Market capitalization as of November 11, 2011 (at 21.00 €): 88.2 mn€

Average daily volume 2010: 15,300 shares

Treasury shares: 1.2%Management: 1.7%Free float: 97.1%

0.70

0.85

0.70

0.85

0.15

0.70

2007 2008 2009 2010

November 2011 |

Medium-term growth forecast for commoditiesand even more so for mining technology

Global market leader andtechnology leader for rail-bound railway systems

Well-established company with double-digit EBIT margins and strong operating cash flow

Reasons to invest

SMT Scharf offers security and growth potential


smt scharf ag• smt scharf brand • suspended monorails or floor-bound duorails • flame-proof...

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