LEM Holding SA · SIX:LEHN
LEM Holding SA — H1 2007/08 Earnings Presentation
15 slides from LEM Holding SA's earnings presentation, Nov 6, 2007
Slide 1: LEM - A global leader in its core Components Business
LEM - A global leader in its core Components Business Half Year Results 2007/08 November 6, 2007 Agenda 1. LEM at a glance 2. Business Review Paul Van Iseghem 3. Financial Review Ageeth Walti 4. Outlook Paul Van Iseghem 2 November 6, 2007 1
Slide 2: About LEM
1. About LEM • LEM is the global market leader in providing innovative and high quality solutions for measuring electrical parameters. • The current and voltage transducers are used in a broad range of applications in industrial, traction, energy & automation and automotive markets. • LEM is a high
Slide 3: LEM at a glance: global footprint and markets served
1. LEM at a glance …. global footprint Production Centers: Adaptation Centers: Geneva, Switzerland 340 employees Milwaukee, USA 25 employees Beijing, China 300 employees Tver, Russia 85 employees Tokyo, Japan 150 employees Direct sales, agents, reps and 5 November 6, 2007 distributors, worldwide 1.
Slide 4: Highlights Half Year 2007/08
2. Highlights Half Year 2007/08 • 11% increase in sales to CHF 98.5 million • 60% EBIT increase to CHF 18.0 million • 100% net earnings increase to CHF 12.3 million • Gross margin improves from 41.0% to 45.7% – Transfer of production to China – Global low cost sourcing project – Favorable exchange r
Slide 5: Industrial Segment: regional markets and business development
2. Industrial Segment: regional markets ROW 3% Sales growth rates HY on HY: Asia 26% • Europe 20% • N. America 0% • Asia 9% Europe • ROW 33% 55% N. America • Total growth 14% 16% Total sales CHF 88.1 million for H1 2007/08 9 November 6, 2007 2. Industrial Segment: business development Growth Growth
Slide 6: Industrial Segment highlights; Automotive regional markets
2. Industrial Segment: business development Highlights: • Industry: – Motor drives – new major customers acquired – Renewable energies - increase of sales for wind and solar by 25% • Traction: – EM4T product to measure energy consumption performing well – High sales in Europe and BRIC countries • En
Slide 7: Automotive Segment: business development
2. Automotive Segment: business development Market: US car manufacturers with depressed production 25 21.3 15 Sales in CHF million 19.4 20 10 15 11.7 10.4 5 EBIT margin in % 10 1.6 0 5 0 -5 2003/04 2004/05 2005/06 2006/07 H1 13 November 6, 2007 2007/08 2. Automotive Segment: business development Hig
Slide 8: China development
2. China development 20 Sales 18 16 14 CHF Million 12 10 8 6 4 • Sales 2 0 – Continued sales growth of 18% 2002/03 2003/04 2004/05 2005/06 2006/07 H1 2007/08 • Production 16 – Production volume increased 3.5 Production 14 fold 12 – Transfer of key products to China CHF Million 10 8 – “Made by LEM” q
Slide 9: Profit and Loss; Gross margin development
3. Profit and Loss CHF million HY 1 2006/07 HY 1 2007/08 Growth Sales 88.6 98.5 + 11% Gross margin in % 41.0 45.7 Operating costs 25.0 27.0 EBIT 11.2 18.0 + 60% Net financial expenses (0.6) 0.1 Income taxes (4.4) (5.8) Tax rate 41.4% 31.8% Net earnings 6.2 12.3 + 98% Continuous profitable growth 17
Slide 10: EBIT development; Net earnings
3. EBIT development •Higher gross margin •Stable expenses CHF million 20 20% 10 10% % of sales 0 0% 2002/03 2003/04 2004/05 2005/06 2006/07 H1 2007/08 EBIT increases to CHF 18.0 million from CHF 11.1 million ROS increases to 18% versus 13% 19 November 6, 2007 3. Net 3. Net earnings earnings 15 15% •
Slide 11: Financial result and taxes; Balance Sheet
3. Financial result and taxes • Financial results – Favorable exchange rates (EUR) were main driver for financial income of CHF 0.1 million in H1 2007/08 (PY -0.6 million) • Taxes – Tax rate of 31.8% in HY 2007/08 (PY 41.4%) was positively influenced by • Closing of tax investigation in France • Imp
Slide 12: Cash flow; Summary financial results
3. Cash flow CHF million HY 1 2006/07 HY 1 2007/08 Net earnings from operations 6.2 12.3 Cash flow from operating activities 2.3 8.5 Cash flow from investing activities -3.0 -3.6 Free cash flow -0.8 4.9 Cash flow from financing activities -13.4 -11.3 Change in cash and cash equivalents -14.2 -6.4 Po
Slide 13: Market factors providing strong tailwind
Agenda 1. About LEM 2. Business Review Paul Van Iseghem 3. Financial Review Ageeth Walti 4. Outlook Paul Van Iseghem 25 November 6, 2007 4. Market factors providing strong tailwind Renewable Battery Motor Traction Energy Mgmt controls market More Reliable Energy Mobility Energy Energy efficiency 26
Slide 14: Technology; Outlook (1/2)
4. Technology • Flagship products – The seeding of the market is progressing well for • Minisens • Sentinel • Wi-LEM – Results of the design-in process normally takes time • The next products to be launched this year – Transducer for surface mounted automatic assembly in the Industry market (white g
Slide 15: Outlook (2/2); Financial calendar and contact details
6. Outlook (2/2) In the mid-term, LEM is ideally positioned to take maximum advantage of fundamental growth drivers: • Strong new product pipeline as engine for future growth by substantially increasing the total available market TAM • Need for more energy, more savings, more renewable energy • Incr