LEM Holding SA · SIX:LEHN
LEM Holding SA — H1 2009/10 Earnings Presentation
29 slides from LEM Holding SA's earnings presentation, Nov 5, 2009
Slide 1: Half Year Results Year 2009/10
Half Year Results Year 2009/10 1 5 November 2009
Slide 2: Agenda
Agenda 1. LEM at a Glance 2. Business Review 3. Financial Review 4. Outlook 2 5 November 2009
Slide 3: 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 gr
Slide 4: LEM Sales and Operations
1. LEM Sales and Operations 4 5 November 2009
Slide 5: LEM at a Glance - Markets Served
1. LEM at a Glance - Markets Served Traditional Markets New Markets • Industry • Automotive – All areas of reliable current – Battery Management (all car types) measurement – Electric Motor Control (HEV-EV) – Motor drives, power conversion AC/DC, power supplies, UPS, welding, medical scanners, new e
Slide 6: Business Review
2. Business Review 5 November 2009
Slide 7: Highlights H1 2009/10
2. Highlights H1 2009/10 • Sales decreased to CHF 78.8 million, -29.0% to the prior year • On the road to recovery – Q2 to Q1 up 21% – Positive book to bill ratio in H1 2009/10 of 1.09 – Upturn in all 4 markets • Operational EBIT of CHF 8.6 million, or 10.9% of sales,-60% to prior year • Net profit
Slide 8: Net Sales
2. Net Sales In CHF Millions In CHF millions Sales Growth Growth 200 H1 to H1 Q2 to Q1 Total Sales 78.8 -29% 21% 175 Industrial 72.7 -29% 21% 150 Automotive 6.1 -33% 22% 125 100 75 50 25 ‐ 2005/06 2006/07 2007/08 2008/09 2009/10 8 5 November 2009
Slide 9: Industrial Segment: Regional Markets
2. Industrial Segment: Regional Markets Sales H1 to H1 Q2 to Q1 ROW 2% growth rates Europe -35% 17% N. America -27% 16% Asia 30% Asia -12% 29% ROW -48% 79% Total -29% 21% N. America Europe 56% 12% Strong recovery in Asia China Q2 to Q1 46% Total sales CHF 72.7 million for H1 2009/10 China H1 to H1 9
Slide 10: Industrial Segment: Business Development
2. Industrial Segment: Business Development In CHF millions Op. EBIT in % of sales 200.0 25.0 Markets and Applications Industry: declined by 32% - however 160.0 20.0 strong recovery of solar, wind and drives in the last quarter 120.0 15.0 Traction: decreased by 12% due to decline in Russian business
Slide 11: Industrial Segment: Results for Industry Market
2. Industrial Segment: Business Development Results for Industry Market New Business Region SoP* SoP* > CHF 0.5 millions 2009/10 2010/11 Photovoltaic, Wind China Started in Q1 Photovoltaic Japan Q4 Photovoltaic, Drives Germany Q4 Wind Scandinavia Q3 Drives, Air conditioning Scandinavia Q4 Q1 Photovo
Slide 12: Industrial Segment: LEM Danfysik
2. Industrial Segment: Business Development LEM Danfysik • Acquired retroactively 1 July 2009 • Total purchase price of CHF 7.4 million • Sales in Q2 of CHF 1.5 million • Strategic bolt-on acquisition to strengthen the position of LEM in the area of high precision current and voltage measurements •
Slide 13: Industrial Segment: Increase in Market Share
2. Industrial Segment: Business Development Increase in Market Share • LEM’s continued focus on commercial strengths and operational excellence have proven to be rewarding in the market, especially during the economic crisis • We estimate that our market share has improved by more than 2 percentage
Slide 14: Automotive Segment: Regional Markets
2. Automotive Segment: Regional Markets Sales H1 to H1 Q2 to Q1 Europe 8% growth rates Europe 11% -16% N. America -38% 16% Asia -32% 42% Asia 46% Total -33% 22% Strong recovery in Asia and N. America N. America 46% Total sales CHF 6.1 million for H1 2009/10 14 5 November 2009
Slide 15: Automotive Segment: Business Development
2. Automotive Segment: Business Development In CHF millions Op. EBIT in % of sales 25.0 25.0 20.0 20.0 Market • Start of production for two key 15.0 15.0 customers in USA and Japan • More new starts of production later in 10.0 10.0 2009/10 5.0 5.0 Applications • Battery management 0.0 0.0 • Motor Co
Slide 16: Automotive Segment: Results for Automotive Market
2. Automotive Segment: Business Development Results for Automotive Market New Business Application in volume SoP SoP > CHF 0.5 million 2009 2010/11 /10 China BM, EV, HEV x Q2 Japan EV, HEV started in Q2 Japan BM Q3 Q2 Japan EPS x Korea EV, HEV Q1 Europe BM x Q3 Europe EV, HEV Q4 Q1, Q2 USA EV, HEV,
Slide 17: Business Development China
2. Business Development China Sales Production • Sales growth back to 2008/09 level • Opening of new 10’000 m2 facility • Market share now close to 50% 25 60 In CHF millions In CHF millions 50 20 40 15 30 10 20 5 10 0 0 2005/06 2006/07 2007/08 2008/09 2009/10 2005/06 2006/07 2007/08 2008/09 2009/10
Slide 18: Recession Management – Q2 Shows Upturn
2. Recession Management – Q2 Shows Upturn in CHF millions Q1 Q2 Q3 Q4 Q1 Q2 2008/09 2008/09 2008/09 2008/09 2009/10 2009/10 Orders 58.1 53.3 39.2 34.4 36.4 47.1 received Sales 55.5 55.5 45.1 40.7 35.6 43.2 Operational 12.0 9.4 4.1 3.7 3.2 5.4 EBIT The recovery started in all 4 markets as of May 20
Slide 19: Gross Margin and Operational EBIT Development
2. Gross Margin and Operational EBIT Development In CHF millions GM % of sales In CHF millions GM % of sales 90% 90 75% 30% 30 75 60% 60 20% 45% 20 45 30% 30 10 10% 15 15% 0 0% 0 0% 2005/06 2006/07 2007/08 2008/09 2009/10 2005/06 2006/07 2007/08 2008/09 2009/10 GM remains stable Operational EBIT
Slide 20: Financial Review
3. Financial Review 5 November 2009
Slide 21: Income Statement
3. Income Statement H1 H1 Change Q1 Q2 Change in CHF thousands 2008/09 2009/10 % 2009/10 2009/10 % Sales 111’040 78’816 -29% 35’644 43’172 +21% Gross margin % 45.9 42.7 42.4 43.0 SG&A (29’646) (25’079) (11’932) (13’147) Operational EBIT* 21’385 8’605 -60% 3’187 5’418 +70% SOP costs (102) (4’810) (4’
Slide 22: Income Taxes & Financial Expense
3. Income Taxes & Financial Expense Q1 Q2 H1 In CHF thousands 2009/10 2009/10 2009/10 EBT (1’357) 4’416 3’059 Income taxes 71 (1’558)* (1’487)* Effective tax rate (5.2%) 35.3% 48.6% * Including CHF 0.5 million provisions for withholding taxes on distributable dividends from prior years. Financial Ex
Slide 23: Net Profit (including provision on SOP)
3. Net Profit (including provision on SOP) In CHF millions % of sales 25 25% Negative effect of revaluation of cash settled stock option plan 20 20% of CHF 4.8 million, share price development of CHF149 to CHF260 15 15% 10 10% 5 5% 0 0% 2005/06 2006/07 2007/08 2008/09 2009/10 23 5 November 2009
Slide 24: Consolidated Balance Sheet
3. Consolidated Balance Sheet In CHF thousands 30.09.2008 31.03.2009 30.09.2009 Cash and cash equivalents 19’172 27’951 20’379 Accounts receivable 49’442 31’920 36’237 Other current assets 2’786 2’834 1’963 Inventories 32’847 23’728 22’729 Total non-current assets 26’960 29’778 36’978 Total assets 1
Slide 25: Cash Flow Statement
3. Cash Flow Statement H1 H1 In CHF thousands 2008/09 2009/10 Net profit 15’994 1’571 Non-cash items 3’293 2’177 Cash flow before changes in NWC 19’287 3’748 Cash flow from changes in net working capital (8’007) 3’469 Cash flow from operating activities 11’280 7’217 Cash flow from investing activiti
Slide 26: Outlook
4. Outlook 5 November 2009 At the heart of power electronics
Slide 27: Market Factors and Strategy
4. Market Factors and Strategy The strategic drivers for our business remain intact: • Need for more energy and renewable energy • Need for reliable energy, more controls and standby battery management • Need for better energy efficiencies, increasing demand for more efficient motor controls • Need
Slide 28: Outlook
4. Outlook • We will maintain our focus on cost control and operational priorities • We will continue our investments in the new businesses, including the fast integration of LEM Danfysik • All 4 markets will benefit from the upturn, Traction market maybe to a lesser extent • Sales for the year of a
Slide 29: Financial Calendar and Contact Details
4. Financial Calendar and Contact Details Financial calendar 5 November 2009 Q2 2009/10 results 9 February 2010 Q3 2009/10 results 3 June 2010 Full year 2009/10 results 25 June 2010 Ordinary Shareholders Meeting For further information Paul Van Iseghem Julius Renk President & CEO CFO Tel: +41 22 706