Folie 1 - Oerlikon Barmag

1
SAURER
Company Presentation
December 2005

Highlights
� Saurer consists of two perfectly positioned divisions: No. 1 world market
position in Textile Solutions with an average market share of 30%; No. 1 in
specialities with Transmission Systems (Graziano Trasmissioni).
� Significant growth potential in Textile Solutions (market consolidation) and
Transmission Systems
� Excellent position in Asia with integration capabilities (leverage for new
business in Asia)
� Strong balance sheet with EUR 600m financing capacities for acquisitions
� Competent management team with experience in management of cyclical
businesses

Saurer – two growth oriented businesses
3
Textile
Solutions
Sales: EUR 1209m
EBIT: EUR 77m
Employees : 5861
We are the undisputed market
leader for full service solutions in
textile machinery – we
continuously set new benchmarks
for efficient textile production
SAURER
Transmission
Systems
Sales: EUR 384m
EBIT: EUR 22m
Employees: 2970
We are the preferred supplier of
transmissions, components and
systems for defined specialty
markets and set high standards in
reliability, price performance and
flexibility

4
SAURER TEXTILE SOLUTIONS

Strong market position, broad product offer
5
Staple fiber
spinning
Main competitors
Rieter, Toyoda,
Murata, Savio
Jingwei
Market position
Chemical fiber
technology Nonwovens Embroidery
TMT, Rieter,
Filteco
Reifenhäuser, Dilo,
NSC
1, 2 1 2,3 1
Lässer, Tajima,
Barudan

Position in the textile value chain
Focus on Spinning
6
Filament
Texturizing
Air-jet
Spinning
Spinning preparation
Twisting
Rotor
Spinning
Weaving / Knitting
Finishing
Synthetic staple fiber
Embroidery
Manufacturing
Saurer Saurer Partners
Ring Spinning
Winding
Nonwoven

Present in the most important market: Asia
7
Sales
split
Textile
Solutions
°
°
°
°
30%
17% 14%
35%
95 02 04 95 02 04 95 02 04
°
° ° °
°° °
° °
°
20% 14%
� key market asia – over 70% of sales !
°
°
°
35%
°
72%
63%
°
°
°
° °
°
°

Innovations and key products
8
� Saurer spends 6% - a very high figure in this industry - of sales in
R&D each years to maintain its leading position; examples:
� WinPro: Revolutionary long staple fiber spinning/twisting system with
highest productivity and quality
� Filament spinning: i-COON 20 end winder (Barmag) sets new productivity
standards
� Autocoro 360: the most successful automatic rotor spinning machine for
over a quarter of a century, with new features such as Corolab (cleaner)
and fancy yarn unit
� Nonwovens: Saurer offers all key nonwoven technologies from a single
source; Saurer can now offer complete turn key plant for stapel fiber
spinning, filament spinning and nonwovens

Operations in china secure proximity to
customers and lower cost base
Success
factors
9
2003/4
realized
Sales &
Service
Organisation
�10 local service
centers in Asia
�Local service
and process
engineers in
India and China
- can be
deployed
anywhere in the
world
Local
production
and sourcing
�Lower costs
base and
natural hedge
�Sourcing in
Asia for Asia,
but also for
the rest of the
world
�Opening of
Suzhou II in
Q4 05
China
specific
products
�Modular
concepts
�China
configurations
�Total
solutions
approach
Local talents
& culture
�Worldwide
culture
program
�Over 1000
people
working in
China
Adaptation
of European
structure
�Reduction of
capacity
�Site
development
programs

Textile mill consumption is increasing
m tonnes
ø
growth:
2.5-3.5%
p.a.
10
50
45
40
35
30
25
20
15
10
Manmade
total
Cotton
Manmade
staple
Manmade
filament
5
0
Wool
1970 1975 1980 1985 1990 1995 2000 2005 2010
� But due to improved efficiency, market for textile machinery is overall slightly
declining; growth must come from consolidation and entrance into new segments

Five companies were acquired in 2005
11
COMPANY BUSINESS FIELD SALES VOLUME [EUR m]
(visible 2006)
Autefa Nonwovens ~30
Kortec Nonwovens ~ 3
Fehrer Nonwovens ~30
Ermafa Plastics ~ 6
recycling

Success with mid-end twisting machine FOCUS
12
� Very successfully launched in
2005
� Developed within only 9 months,
mainly for the Indian and Chinese
market
� Superior Saurer technology, but
reduced to the maximum for the
actual market needs
� Can compete in pricing with local
products

Management of market cycles is crucial
13
% change to previous quarter
40
20
0
-20
-40
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
Source: VDMA
� Saurer has learned to manage the always shorter and steeper cycles of the textile
market

Key management capabilities
14
Handling of cyclical markets
� Low fixed cost basis, flexible working hours scheme, low vertical
integration, superior, flexible logistics, broader product range…
Doing business in key market Asia
� Successful business in Asia and China – setting up new operations, access
to market is “daily business”
� Well trained local Chinese Management
Experienced team
� Management has been with Saurer for several years
� Excellent business, market and technical know-how

Strategy for sustainable growth (MUSANGALA)
15
1
2
3
4
5
Exploit our strong product and total solution
leadership position
Generate 30% growth from better understanding
of customer and faster realization of new solution
Expand market position and/or technology base
by acquisition of leading companies
Continuously improve process orientation,
flexibility and low cost base
Create a challenging and inspiring working
climate that attracts talents

16
SAURER TRANSMISSION
SYSTEMS

Specialized supplier of transmissions
17
Agriculture Luxury and sports
cars
Main competitors
- Captive business
(OEMs)
- ZF, Carraro
Market position
Dana
Earth moving,
Forklifts, other
Getrag, Magma, ZF,
Dana
1 (Europe)
1 1 - 3
- no presence in
US/Asia
� Position as specialized supplier for transmissions and components for small series at
relatively low cost prevents fierce competition as in „mainstream“ car markets

Strong position in Europe – new potential in
NAFTA and Asia
18
°
°
Sales
Transmission
°
° °
°
°
°
19%18%
11%
Systems 95 02 04 95 02 04
95 02 04
America Europe Asia
°
86%
78% 78%
°
°
°
3% 3 4%
°
°
°

Agriculture and luxury cars: Two strongest
segments
TOTAL SALES 2004: EUR 384 m
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Earth Moving
9,1%
Forklifts
3,9%
Sales by application field Sales by type of product
Other Sectors
13,1%
Cars
24,2%
Agriculture
49.7%
4WD &
Subassemblies
(Groups)
5,2%
Synchronizers
& Subsystems
(Groups)
16,9%
Bevel
Gears
(Groups)
11,5%
Drive-Axles
(Groups)
8%
Gearboxes
(Systems)
10,3%
Spur Gears
(Components)
48,1%

Innovations and key products
CARS
AGRICULTURE
OTHER
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• Alfa Romeo 156:
4WD system (rear diff. & front PTU)
• Aston Martin DB9: manual gearbox
and for the automatic transmission,
the rear diff
• Maserati Quattroporte and Ferrari
Scaglietti: two new AMT gearbox
applications
• VW Transporter: front PTU for the
4WD model
• Magna Steyr: special synchronizer for
Magna ITC (Integrated Transfer Case)
• FENDT
• CNH
• JOHN DEERE
• Transbus Dennis, new inverted portal
axle for city bus
� Project together with partner Prodrive
� A new project for a new customer in
the sport luxury car segment
� Further development of the relationship
with Ferrari Group
� Further development of the relationship
with VW
� Special component development for Magna
Steyr
� Application of different GTG technologies
� Several new project for components
(gears)
� New Client and new application of IPA
technology

Transmission systems strategy: growth in
specialties, mainly in NAFTA and Asia
21
1
2
3
4
Focus on specialties markets
Cost effectiveness and flexibility to handle small and
middle size specialties markets
Acquisitions to consolidate specialty segments and
technologies
Geographical expansion in niche markets in NAFTA and
Asia

22
SAURER GROUP

With two divisions best in class
23
Textile
Solutions
Transmission
Systems
Two businesses with its own markets, strategy, knowhow,
and competition – one goal: to be best in class
� Know-how synergies
- Experience e.g. in establishing business in China from Textile
industry can be used in Transmission Systems business
� Management synergies
- Management of a cyclical industrial company
� Financial synergies
- Different cycles, cash management

Shareholder structure
Free float
- in the progress
of transfer
24
36%
Treasury
shares
1%
15%
42%
Laxey Partners
6%
Zürcher
Kantonalbank
(ZKB)
Free float
- registered
Corporate entities: 32%
Individuals: 11%
Shares in the
progress of transfer: 57%
(thereof 15% Laxey, 6% ZKB)
� Saurer is interested in having a shareholder base with long-term horizon

25
OUTLOOK

Short-term outlook (2005)
26
� End of multi-fiber agreement and soft-landing in China has caused a
certain degree of uncertainty; we expect :
- Lower volumes in Textile Solutions and
- Higher volumes in Transmission Systems
� Second half 2005 on level of first half with hope for improvement
in textile business

Paradigma change from cost reduction to growth
from:
Looking inward
- Consolidation
- Risk reduction
27
to:
Looking outward
- Growth and innovation
- Seize business opportunities

Outlook 2008: Substantial growth potential in
textile an transmission systems
28
Textile Systems Solutions
Transmission Systems
New organic
growth
Acquisition
Textile
Business as
usual
New organic
growth
Acquisition
Transmission
Business as
usual

29
BACK-UP

TEXTILE MARKET POSITION
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STAPLE FIBER
Market Volume Market Saurer
Brands in CHF m Share Pos. Main Competitors
Ringspinning Zinser 500-1000 25% 2,1 Rieter, Toyoda, Marzoli,
LMW
Winding Schlafhorst 500-800 35% 1,2 Murata, Savio, Jingwei
Rotor Spinning Schlafhorst 400-800 60% 1 Rieter, Savio
FILAMENT
Filament Spinning Barmag 650-1000 40% 1 TMT, Rieter
Synth. Staple fiber Neumag 200-400 40% 1 Lurgi Zimmer, HILLS, Fare
Texturing Barmag 350-500 35% 1 TMT, Rieter, Jingwei
TWISTING
Twisting Allma, Hamel, 500-750 30% 1 Murata, Rieter, Leewa,
Systems Volkmann Savio, Rifa
EMBROIDERY
Embroidery Saurer 300-500 50% 1 Lässer,
Systems Melco (excl. multihead) Tajima, Barudan
NONWOVENS
Airlaid/Spunbond Neumag 400-600 10-50% 3 Reifenhäuser, Rieter,
Fleissner

SAURER TEXTILE GLOSSARY
WEAVING AND KNITTING YARNS
Yarn type Filament Staple
Saurer Processes (Filament-) Spinning Ring spinning
Texturing Winding
Twisting Rotor spinning
Twisting
Chemical staple fiber plants
Materials Chemical fiber: Natural fiber:
- Polyester - Cotton
- Polyamide - Wool
- Polypropylene Chemical fiber:
- Acrylic - Polyester - Polyamide
- Elastane - Polypropylene - Acrylic
- Viscose
Blends
NONWOVENS
Yarn type Filament Staple
Saurer Processes Spunbond Air-laid
Materials Chemical fiber Chemical fiber
31
Filament Spinning: After heating the polymer, the
melt is spun to endless yarn (filament) via spin packs.
The yarn is drawn and taken up. Saurer Brands:
Barmag, Neumag
Texturing: Mechanical or thermal processing of
filament to achieve properties similar to those of natural
fibers; mainly for textile applications. Saurer Brand:
Barmag.
Twisting: Twisting of one or several yarns into a ply
yarn. This can be done with filament as well as with
staple yarns. Saurer Brands: Allma, Volkmann
Ring spinning: By drafting and twisting, staples are
spun into ring yarn. Process is always followed by
winding. Saurer Brand: Zinser
Winding: The ring yarn is winded from the cops to
large bobbins. Thereby is quality check is executed.
Saurer Brand: Schlafhorst
Rotor spinning: Also called open-end spinning; with
suction, the staples are drawn to a rotor and thereby
spun to a rotor yarn. Saurer Brand: Schlafhorst
Chemical staple fiber plants: Process analog to
filament spinning, but after the spinning, staples of
defined length are cut. These staple serve as input
material for the ring or rotor spinning process. Saurer
Brand: Neumag
Nonwovens: The filaments or staples which build the
fabric are bonded with thermal, chemical, or mechanical
forces. There is no weaving/knitting process. Saurer
Brand: Neumag

SAURER HISTORY
32
� 1853: Founded by Franz Saurer in a village close to St. Gallen, Switzerland
� 1866: Franz Saurer moves to Arbon; marriage with Paulina Stoffel, owner of a successful manufacturing business
� 1869: Installation of first Saurer embroidery machine
� 1903: Start of production of trucks, major sales abroad
� 1920: Saurer becomes a limited company
� Up to 1953: Success story, strong growth mainly in vehicles business
� 1973: Oil crisis marks turning point – vehicle production starts to lose competitiveness – definitive end of vehicle
production activities in 1990
� From 1988 on: Consequent textile oriented strategy; start of a series of acquisitions:
- 1988, Carl Hamel AG, Arbon, Switzerland, twisting machines
- 1990, Volkmann GmbH, Krefeld, Germany, twisting machines
- 1991, Schlafhorst, Mönchengladbach, Germany, rotor spinning and winding machines, and Zinser
Textilmachinen GmbH, Ebersbach, Germany, ring spinning machines
- 2000, Barmag AG, Remscheid, and Neumag, Neumünster, both Germany, chemical fiber filament spinning
and texturing, chemical staple fiber machines
- 2003: M&J Fibretech and Ason, Denmark/USA, Nonwovens machinery
� 1992: Integration of Graziano Trasmissioni (Transmission Systems) into Saurer by means of a stock swap – focus
on two business pillars textile machines and transmission systems as strategic complements
� 2003/4: Divestment of Surface Technology activities – Saurer has become the world’s leading textile machinery
supplier and the leading manufacturer of transmissions for agricultural, earth moving and special vehicles, and
luxury sports cars

VALUE GENERATION SAURER TEXTILE SOLUTIONS
33
Time to money Sales Fulfillment After sales
Product leadership Premium supplier Logistic champion Customer intimacy
High R&D efforts to
maintain product
leadership position
Innovation based on
deepest knowledge
of customer leads to
product
differentiation and
price premium
S u p p o r t p r o c e s s e s – Facilitation Champion
Selling with price
premium due to
superior total
solution offer
Strong logistics
lead to quick
quality delivery
and a minimum
of capital
employed
Local around the
clock around the
world services

VALUE GENERATION TRANSMISSION SYSTEMS
34
Time to money Sales Fulfillment
Top technology applications
for niches
Co-developments
with customers and
partners to generate
reliable, high
performing and
cost effective
products
Strength in design
and manufacturing of
small series products
Premium supplier in defined
niches for high class modules
S u p p o r t p r o c e s s e s – Facilitation Champion
Customer intimacy
leads to long and
good margin
contracts
Manufacturing champion
for small volumes
High flexibility and
cost effectiveness to
manage the wide
range of products with
perfect on time
delivery and with the
demanded quality

KEY FIGURES (II)
in EUR 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995
Sales 1'614
EBITDA 189
35
1'746
166
1'698
149
1'593
100
1'426
151
867
23
1'152
110
1'250
136
1'114
91
1'151
in % of sales 11.7% 9.5% 8.8% 6.3% 10.6% 2.7% 9.5% 10.9% 8.2% -0.7%
Cash Op.Activities 165
Capital Expenditures 61
Free Cash Flow 1) 104
Net Debt (Cash) (141)
Equity incl. minority int. 519
Intangible Assets (98)
Tangible Cap.Employed 280
Turns of Cap.Employed 4.9
1) Before proceeds from sale of assets
125
50
75
32
471
(120)
383
4.4
145
52
93
106
433
(129)
410
3.7
117
64
53
208
426
(138)
496
3.3
110
74
36
189
481
(190)
480
3.1
(9)
63
(72)
75
412
(38)
449
2.0
90
93
(3)
(21)
503
(46)
435
2.8
119
52
67
(71)
508
(49)
387
3.2
82
46
36
(47)
481
(37)
397
2.6
(8)
(25)
47
(71)
(23)
506
(39)
445
2.3