LEM Holding SA · SIX:LEHN
LEM Holding SA — H1 2010/11 Earnings Presentation
15 slides from LEM Holding SA's earnings presentation, Nov 9, 2010
Slide 1: First Half Year Results 2010/11
First Half Year Results 2010/11 9 November 2010 1 Agenda 1. LEM at a Glance 2. Business Review 3. Financial Review 4. Outlook 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 gr
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 H1 2010/11 - Strong Results
2. Highlights H1 2010/11 - Strong Results Growth H1 2009/10 H1 2010/11 H1 2010/11 to Q2 to Q1 In CHF million H1 2009/10 2010/11 Sales 78.8 141.8 80% 12% Operational 8.6 30.3 252% 21% EBIT After accounting for the stock option plans EBIT 3.8 29.9 688% 24% Net profit 1.6 19.8 1’160% 41% 7 9 November 2
Slide 5: Industrial Segment: Regional Markets and Business Development
2. Industrial Segment: Regional Markets Sales growth H1 to H1 Q2 to Q1 ROW 2% rates Europe 73% 10% N. America 58% 8% Asia 34% Asia 103% 17% ROW 63% 76% Total 80% 13% N. America 11% Europe 53% ■ Total sales CHF 130.8 million for H1 2010/11 9 9 November 2010 2. Industrial Segment: Business Development
Slide 6: Automotive Segment: Regional Markets and Business Development
2. Automotive Segment: Regional Markets Sales growth H1 to H1 Q2 to Q1 rates Europe 13% Europe 179% -15% N. America 100% 31% Asia 41% -5% Asia 35% Total 79% 10% N. America 52% ■ Total sales CHF 11.0 million for H1 2010/11 11 9 November 2010 2. Automotive Segment: Business Development In CHF millions
Slide 7: Business Development - China
2. Business Development - China Sales Production • Sales growth of 83% from same period • Continued transfer of key products last year • “Made by LEM” quality • Market share over 50% 70 70 In CHF millions In CHF millions 60 60 50 50 40 40 30 30 20 20 10 10 0 0 06/07 07/08 08/09 09/10 HY 10/11 06/07
Slide 8: Consolidated Balance Sheet and Income Statement
3. Consolidated Balance Sheet In CHF thousands 31.03.2010 30.09.2010 Cash and cash equivalents 29’756 19’387 Accounts receivable 43’454 60’572 Inventories 21’744 32’098 O Other current assets 1’989 2’ 8 2’787 Total non-current assets 35’719 34’366 Total assets 132’662 149’209 Accounts payable 23’416
Slide 9: Results by Quarter and Gross Margin Development
3. Results by Quarter 100 H1 2010/11 30% 90 80 70 H1 2009/10 20% 60 50 ■ 5 consecutive growth quarters 40 ■ 12% sales increase vs Q1 10% 30 ■ Advanced orders in Q1 20 ■ Q2 book-to-bill ratio 1.2 10 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 08/09 08/09 08/09 08/09 09/10 09/10 09/10 09/10 10/11 10/11 Orders
Slide 10: Operational EBIT and Additional Stock Option Plan Income / Costs
3. Operational EBIT In CHF millions Op EBIT % of sales In CHF H1 H1 Q1 Q2 millions 2010/11 2009/10 2010/11 2010/11 25% Op EBIT 8.6 30.3 13.7 16.6 30 20% Op EBIT 10.9% 21.4% 20.6% 22.1% % Sales 15% 20 10% Excluding additional SOP 10 cost/income 5% ■ Exceptionally good profitability in Q2 Measures
Slide 11: Financial Expense and Income Taxes
3. Financial Expense Financial Expense (net) H1 H1 In CHF thousands 2009/10 2010/11 Financial expense + income (143) (244) Foreign exchange effect (594) (2’406) Total (737) (2’650) CHF 8 million bank loans generated interest expense Foreign exchange effect mainly driven by EUR devaluation 21 9 N
Slide 12: Net Profit and Share Buy Back
3. Net Profit In CHF H1 H1 Q1 Q2 millions 2009/10 2010/11 2010/11 2010/11 In CHF millions % of sales Net profit 16 1.6 19 8 19.8 82 8.2 11 6 11.6 25 25% H1 2009/10 20% 20 -4.8 8.6 -0.7 -1.5 15% 1.6 15 10% -0.4 10 -2.7 -7.4 H1 2010/11 5% 30.3 5 19.8 0% Op. EBIT SOP inc./ Financial Income Net profit 0
Slide 13: Outlook: Key Findings of the CEO
4. Outlook 4. Key findings of the CEO after 4 months ■ Excellent brand and market recognition ■ Strongg technical know-how for pproducts,, technology gy and applications ■ Broadest product portfolio in the market ■ Economies of scale ■ Low cost manufacturing →LEM is a strong company 26 13
Slide 14: Areas of Focus; Market Factors and Strategy
4. Areas of Focus 1. Strengthening the organization: ■ Jean-Marc Peccoux nominated VP of R&D ■ Luc Colombel to focus on the Automotive segment, increasing importance for LEM ■ Hans Dieter Huber to lead the Industrial Business maximizing the synergies 2. Match market demands ■ Secure additional sourc
Slide 15: Outlook; Financial Calendar and Contact Details
5. Outlook We are confident for the rest of the year but remain alert as global economic and currency related uncertainties could impact the results in 2011. 2011 ■ We expect sales to reach CHF 285 to 295 million for the full year 2010/11 ■ This is an increase of over 50% compared to last year CHF 1