LEM Holding SA · SIX:LEHN
LEM Holding SA — FY2010/11 Earnings Presentation
20 slides from LEM Holding SA's earnings presentation, Jun 9, 2011
Slide 1: Results Q4 and Year 2010/11 Media & Analyst Conference
Results Q4 and Year 2010/11 Media & Analyst Conference Z i h 9 JJune 2011 Zurich, Agenda 1. LEM at a Glance François Gabella 2. Highlights and Business Review François Gabella 3. Financial Review Julius Renk 4. Strategy and Outlook François Gabella 5. Proposals Shareholders’ Meeting Felix Bagdasarja
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 - Markets Served
1. LEM at a Glance - Markets Served Traditional Markets New Markets Industry ■ Motor drives, power conversion Automotive AC/DC,, power p supplies, pp , UPS,, ■ Conventional Cars welding, medical scanner, new B tt Battery Management M t energies, leakage current ■ Test & measurement ■ Green Cars (HEV
Slide 4: Highlights 2010/11
2. Highlights 2010/11 2010/11 vs. 2009/10 Q4 vs. Q3 2010/11 Orders 55% -12% Sales 60% 0.5% O Operational ti l EBIT 134% -8.9% 8 9% Net earnings 276% 64% ■ Solid growth in all sectors and regions ■ Spectacular growth of renewable energy business, particularly solar ■ Fast build-up of capacity to meet
Slide 5: Book-to-bill ratio and Industrial Segment Business Split
2. Book-to-bill ratio In CHF millions Book‐to‐bill ratio 100 1.60 Year to Sales (in CHF million) year Q4 vs.Q3 90 1.40 Industrial 272.7 59.7% -1.1% 80 77.0 77.4 75.0 1.20 Automotive 23 5 23.5 59 8% 59.8% 19.6% 70 66.8 Total sales 296.2 59.7% 0.5% 58.4 1.00 60 55.5 55.5 48.3 50 45.1 0.80 43.2 40.7 40
Slide 6: Industrial Segment Results
2. Industrial Segment: Results CHF millions Op. EBIT in % of sales 280 25 Markets and Applications 240 Industry: 20 Yearly sales increase of 75%. Strong 200 growth in renewable energy markets, now a third of total sales (FY 2009/10 15 was 18%). Robust growth in electric 160 motor drives. 120 10 Trac
Slide 7: Automotive Segment Results
2. Automotive Segment: Results CHF millions Op. EBIT in % of sales Applications ■ Conventional Cars: - Battery Management 25 25 ■ Green Cars (HEV, EV) 20 20 - Battery Pack - Electric Motor Control 15 15 Market 10 10 ■ Upswing of the market in general ■ Majority of green cars shown at world 5 5 car s
Slide 8: Business Development China and Innovation and R&D
2. Business Development China Sales Production ■ Beijing LEM confirms its #1 position as ■ Year to year sales growth of 62% largest manufacturing site of the Group ■ Market share of 50+% (38% of total) ■ “Made Made by LEM” LEM quality CHF millions CHF millions 70 120 60 100 50 80 40 60 30 40 20 20 1
Slide 9: Financial Highlights
3. Financial review Julius Renk, CFO 3. Financial Highlights ■ Strong balance sheet ■ Equity ratio 60% (63%) ■ Cash C h and d cashh equivalents i l t CHF 27 27.2 2 million illi (CHF 29 29.8 8 million) illi ) ■ Strong Profitability ■ Operating EBIT margin of 20.4% ■ Strong cash generation ■ Free cash
Slide 10: Consolidated Balance Sheet and Income Statement
3. Consolidated Balance Sheet In CHF thousands 31.03.2010 31.03.2011 Cash and cash equivalents 29’756 27’231 Accounts receivable 43’454 60’026 Inventories 21’744 34’187 Income tax receivables 0 1’310 Other current assets 1’989 1’717 Total non-current assets 35’719 37’508 Total assets 132’662 161’979
Slide 11: Results by Quarter and Gross Margin Development
3. Results by Quarter In CHF millions % of sales 100 30% 90 ■ Orders normalizing, sales 77 0 77.4 77 4 25% stabilizing g 80 75.0 77.0 70 66.8 20% ■ RoS normalizing through last 58.4 60 55.5 55.5 15% quarters 48.3 50 45.1 43.2 40.7 40 35.6 10% ■ High net profit in % of sales, resulting from significa
Slide 12: Operating Expenses and R&D Expenses
3. Operating Expenses 2009/10 2010/11 CHF millions % of sales Operating expenses 70 50% 54.6 65.9 in CHF million 60 Operating expenses 29.4% 22.2% 40% in % Sales 50 30% 40 ■ Significant leverage: Operating expenses increased by 20.6%, 30 compared to sales increase of 59.7% 20% 20 ■ Organizational st
Slide 13: Operational EBIT and Legacy SOP Programs
3. Operational EBIT 2009/10 2010/11 CHF millions % of sales Operational EBIT 70 25.8 60.4 in CHF million 24% Operational EBIT 60 13.9% 20.4% 22% in % Sales 50 20% 40 ■ Excluding additional SOP cost/income 18% 30 ■ Exceptionally good profitability in 16% 2010/11 20 14% ■ Measures to strengthen the st
Slide 14: Financial Expense and Income Taxes
3. Financial Expense In CHF thousands 2009/10 2010/11 Foreign exchange effect* (1’308) (4’263) Other financial expense + income (47) (359) Total (1’355) (4’622) Bank loans generated interest expense; loans reduced from CHF 8 million per 30.9.2010 to CHF 0 million as at 31.03.2011 Foreign exchang
Slide 15: Net Profit and Cash Flow Statement
3. Net Profit CHF millions % of sales 2009/10 2010/11 Net profit 10.5 39.6 45 20% in CHF million 40 18% Net profit 5.7% 13.4% in % sales 35 16% EPS diluted 9.17 34.51 30 14% in CHF 25 12% 2009/10 20 10% 25.8 8.3 1.4 5.6 10.5 15 8% 10 6% Op. EBIT SOP Financial Income tax Net profit inc./costs expense
Slide 16: Summary Financial Results
3. Summary Financial Results ■ Strong sales growth combined with high operating expenses leverage lead to an exceptionally high operational profitability in 2010/11 ■ High g foreign o eg e exchange c a ge losses osses from o USUSD a and d EURU rateate de development e op e t ■ Significantly decrease
Slide 17: Market Factors and Strategy; Areas of Focus
4. Market Factors and Strategy ■ We firmlyy believe in our Strategic g Direction and the 4 drivers for our business remain unchanged ■ We will continue to capitalize on the drivers of LEM’s markets through ■ Pure play components company ■ Diversification across geographies and markets 33 4. Areas of
Slide 18: Outlook
4. Outlook ■ Following a rally in first three quarters of 2010/11, we see a decline in sales and in bookings for the start of the year 2011/12 ■ Co Corrections ect o s o on tthe e so solar a market a et ■ Compensation of over-booking and over-stocking in previous quarters ■ For 2011/12 we expect ■ O
Slide 19: Proposals for the Shareholder's Meeting
5. Proposals for the Shareholder’s Meeting ■ New dividend policy ■ As a consequence of the company’s strong balance sheet and the confident outlook for further profitable growth, growth LEM will target to return significantly more than 50% of the consolidated net profit for the year to the sharehold
Slide 20: Financial Calendar and Contact Details
Financial Calendar and Contact Details Financial calendar 1 July 2011 Ordinary shareholders’ meeting for the year 2010/11 6 July 2011 Dividend ex-date 8 July 2011 Dividend record date 11 July 2011 Dividend payment date 9 August 2011 Q1 results 8 November 2011 Q2 results 14 February 2012 Q3 results 6