LEM Holding SA · SIX:LEHN
LEM Holding SA — Q3 2010/11 Earnings Presentation
16 slides from LEM Holding SA's earnings presentation, Feb 15, 2011
Slide 1: 3rd Quarter Results 2010/11
3rd Quarter Results 2010/11 15 February 2011 1 Agenda 1. LEM at a Glance 2. Business Review 3. Financial Review 4. Outlook 2
Slide 2: About LEM / Production & Logistics World-Wide
1 About LEM 1. ■ LEM is the global market leader in providing innovative and high quality solutions for measuring electrical parameters ■ Th The currentt andd voltage lt transducers t d are used d iin a b broad d range off applications in Industrial, Traction, Energy & Automation and Automotive mark
Slide 3: LEM at a Glance - Markets Served
1. LEM at a Glance - Markets Served Traditional Markets New Markets Industry ■ Motor drives, power conversion Automotive AC/DC, power supplies, UPS, ■ Conventional Cars welding, medical scanner, new Battery Management energies, i lleakage k currentt ■ Test & measurement ■ Green Cars (HEV, EV) Batter
Slide 4: Highlights Q3 2010/11 – Start of Normalization
2 Highlights Q3 2010/11 – Start of Normalization 2. 9 months results 2010/11 achieved exceptional profitability ■ After very strong bookings in Q1 & Q2 due to fears of shortages on the market, now normalization of order development in Q3 (book-to- bill 1 1.09) 09) ■ Demand remaining strong in most m
Slide 5: Book-to-bill ratio / Industrial Segment: Regional Markets
2 Book 2. Book-to-bill to bill ratio In CHF millions Book‐to‐bill ratio 100 1.4 90 1.2 ■ 6 consecutive sales growth 80 quarters 70 1.0 60 ■ Order intake normalizing 0.8 50 0.6 ■ Q3 book-to-bill ratio 1.09 40 30 0.4 20 0.2 10 0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 08/09 08/09 08/09 08/09 09/10 09/10
Slide 6: Industrial Segment: Business Development
2 Industrial Segment: Business Development 2. In CHF millions Op. EBIT in % of sales 240 25 Market and Applications 200 Industry 20 ■ Increased I d by b 94% specially i ll iin th the areas 160 of motor drives and applications for solar energy 15 120 Traction ■ Increased at a pace of 8% mainly due 10
Slide 7: Automotive Segment: Business Development / China
2 Automotive Segment: Business Development 2. In CHF millions Op. EBIT in % of sales 25 25 Applications 20 20 ■ Conventional Cars: - Battery Management 15 15 ■ Green Cars (HEV, (HEV EV) - Battery Pack 10 10 - Electric Motor Control 5 5 Market ■ Upswing of the market in general ■ Start of production
Slide 8: Income Statement
3. Financial Review 3. Income Statement 9 months 9 months Q2 Q3 In CHF thousands Change Change 2009/10 2010/11 2010/11 2010/11 Sales 127’082 218’824 72.2% 74’994 77’043 2.7% Gross margin % 43.6 43.2 -0.4%pt 43.8 42.4 -1.4%pt SG&A (39’454) (39 454) (48’650) (48 650) (23 3%) (23.3%) (16’253) (16 253)
Slide 9: Results by Quarter / Gross Margin Development
3 Results by Quarter 3. In CHF millions % of sales 100 30% 90 25% ■ 2.7% sales increase vs Q2 80 70 20% ■ Q3 EBIT margin impacted by investments in organization and 60 15% foreign exchange 50 40 10% ■ Q3 net profit margin impacted by additional SOP costs linked 30 5% to share price appreciation 20 0
Slide 10: Operational EBIT / Additional Stock Option Plan Costs
3 Operational EBIT 3. I CHF millions In illi O EBIT % off sales Op l 9 months 9 months Q2 Q3 2009/10 2010/11 2010/11 2010/11 25% Op EBIT 16.0 46.0 16.6 15.7 C CHF million 30 20% Op EBIT 12.6% 21.0% 22.1% 20.3% % of sales 15% 20 ■ Excluding additional SOP cost/income 10% ■ Exceptionally good profitab
Slide 11: Financial Expense / Income Taxes
3. Financial Expense p 9 months 9 months In CHF thousands 2009/10 2010/11 Foreign exchange effect* (817) (3’910) Other financial expense + income (234) (359) Total (1’051) (4’268) Bank loans generated interest expense; loans reduced from CHF 8 million to CHF 2 million as at 31 December 2010 Fore
Slide 12: Net Profit / Share buy back
3. Net Profit In CHF 9 months 9 months Q2 Q3 millions 2009/10 2010/11 2010/11 2010/11 In CHF millions % of sales Net profit 5.5 27.3 11.6 7.5 25 25% 9 months 2009/10 20% 20 16.0 5.6 1.1 3.8 5.5 15% 15 Operating SOP cost Financial Income taxes Net profit EBIT expenses 10% 9 months 2010/11 10 46.0 5.0
Slide 13: Dividend policy
3 Dividend policy 3. ■ P Previous i policy: li b between 25% and d 50% off the h consolidated lid d net profit for the year as a dividend ■ In view of − positive outlook for the company and − significant g p potential to increase the financial leverage g in the balance sheet ■ New policy: LEM will t
Slide 14: Areas of Focus / Market Factors and Strategy
4 Areas of Focus 4. 1 Strengthening 1. S h i theh organization: i i ■ Jean-Marc Peccoux now in charge of R&D g ■ Luc Colombel to focus on the Automotive segment; ; of increasing g importance for LEM ■ Hans Dieter Huber to lead the Industrial Segment, maximizing the synergies between the businesses ■
Slide 15: Market Outlook / Outlook
4 Market Outlook 4. ■ C Consolidation lid i off IIndustrial d i l sales l on a hi high h llevell − Robust business perspectives in industry markets, mainly drives and UPS − Stagnation in the traction market − Renewables, energy applications continued volatility expected d tto: due − Evolution of the
Slide 16: Financial Calendar and Contact Details
Financial Calendar and Contact Details Financial calendar 15 February 2011 Q3 2010/11 results 9 June 2011 Full yyear 2010/11 results 1 July 2011 Shareholders’ Meeting For further information Jan Gregor Julius Renk IRF Communications CFO +41 (0)43 244 8154 +41 (0)22 706 1250 lem@irfcom.ch jrk@lem.com