LEM Holding SA · SIX:LEHN
LEM Holding SA — Q1 2015/16 Earnings Presentation
30 slides from LEM Holding SA's earnings presentation, August 2015
Slide 1: Results Q1 of 2015/16
Results Q1 of 2015/16 1 April 2015 to 30 June 2015
Slide 2: Agenda
Agenda 1. LEM at a Glance 2. Highlights and Business Review 3. Financial Review 4. Strategy and Outlook HO xx-P 2
Slide 3: Global Market Leader in Current and Voltage Transducers
1. Global Market Leader in Current and Voltage Transducers Market Position Performance Perspectives Source: Swissquote Global market share Continued sales Reinforced invest- of 50% in Industry growth and strong ment in innovation Benchmark in service margins Solid growth perspec- and produ
Slide 4: LEM Applications: Electric Motorcycle
1. LEM Applications: Electric Motorcycle The direct-drive power train of an electric motorcycle is highly efficient and maintenance-free, but requires a highly accurate torque control. A HAH1 DR The electricity is stored in a rechargeable 1 Direct-drive brushless motor lithium-ion battery (4), which
Slide 5: LEM Applications: Sewing Machine/Embroidery Machine
1. LEM Applications: Sewing Machine/Embroidery Machine 4 Full servo control allows for speed and precision 7 in industrial sewing/embroidery machines. Accuracy and speed of the table movements, as 3 well as the correct, accurate and regulated rotation speed of the main axis for the needles 5 are dir
Slide 6: LEM Applications: Power Generator
1. LEM Applications: Power Generator The diesel driven engine (1) activates an alternator (2), which converts mechanical energy into electricity. The electricity is 1 Motor conducted to the network and measured at 2 Alternator the output of the alternator through the RT 3 Energy meter A RT 2000 Rogo
Slide 7: LEM Applications: Locomotive
1. LEM Applications: Locomotive Inverters are used to transform the energy into the right voltage and current to drive the motors. Voltage and current transducers are used to measure the current and the voltage on the secondary side of the transformer and A LTC 100 B DVL 1 on the DC-side. Special di
Slide 8: Diverse Target Markets – Diversified Businesses
1. Diverse Target Markets – Diversified Businesses Share of sales Businesses Q1 of 2015/16 Cyclicality Macro drivers Green Cars Consumer durables Technology adoption 15% Conventional Cars Fuel savings High precision Late cycle Infrastructure investments Traction Renewable energies Mid cycle Energy p
Slide 9: Agenda
Agenda 1. LEM at a Glance 2. Highlights and Business Review 3. Financial Review 4. Strategy and Outlook DAHBV2 9
Slide 10: Highlights: CHF appreciation weighs on sales and margins
2. Highlights: CHF appreciation weighs on sales and margins In CHF millions, % Q1 2015/16 Q1 2015/16 vs. Q1 2015/16 vs. Q1 2014/15 Q4 2014/15 Orders 60.9 -6.0% +0.4% Sales 61.5 -5.4% -0.0% EBIT 10.5 -22.5% +1.7% Net profit 8.9 -17.2% -11.1% ■ Continuing strong growth in China ■ Appointments of new G
Slide 11: Net Sales
2. Net Sales In CHF millions In CHF millions, % Sales Q1 vs. Q1 Q1 vs. 300 as at constant Q4 275 reported currencies 250 Industry 52.1 -7.8% -4.5% +1.1% 225 Automotive 9.4 +10.2% +6.1% -5.8% 200 Total sales 61.5 -5.4% -3.1% -0.0% 175 150 ■ Stable business development Q1 vs. Q4 125 ■ Strong sales gro
Slide 12: Quarterly View
2. Quarterly View In CHF millions Book-to-bill ratio 80 1.2 Booking increased by 0.4% Q1 vs. Q4 70 66.5 61.8 65.1 65.0 64.7 1.0 Currency impact on 61.1 61.5 60 57.6 61.5 sales and bookings 0.8 Book-to-bill ratio stable 50 at around 1 40 0.6 30 0.4 20 0.2 10 0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 13/
Slide 13: Industry Segment: Regional Markets
2. Industry Segment: Regional Markets In CHF millions, % Sales Growth Growth Europe Q1 vs. Q1 Q1 vs. Q4 North America Europe 19.6 -17.2% -15.2% Asia and ROW 38% N. America 6.0 +5.2% -13.2% Asia and 26.5 -2.3% +23.2% RoW Total 52.1 -7.8% +1.1% 51% Strong underlying growth along with seasonal recove
Slide 14: Industry Segment: Business Development
2. Industry Segment: Business Development In CHF millions Op. EBIT in % of sales Businesses and Applications 240 25 Drives & welding (growth QoQ: -7%) Strong sales in China – other regions slow 200 Won projects with new products 20 Maintained market share 160 Renewable energies & power supplie
Slide 15: Automotive Segment: Regional Markets
2. Automotive Segment: Regional Markets In CHF millions, % Sales Growth Growth Q1 vs. Q1 Q1 vs. Q4 Europe North America Europe 0.8 +46.3% -22.0% Asia and Rest of World 8% N. America 4.6 +6.1% -2.8% Asia and 4.0 +9.6% -5.3% RoW Total 9.4 +10.2% -5.8% 43% Focus on Asian and North American markets
Slide 16: Automotive Segment: Business Development
2. Automotive Segment: Business Development In CHF millions Op. EBIT in % of sales Businesses and Applications 40 25 Conventional cars (QoQ: -4%) Stable demand for battery management 35 business 20 Growth in China and Germany – decreasing 30 sales in in USA and Japan 25 15 Green cars (HEV, EV) (
Slide 17: Business Development China
2. Business Development China Sales Production ■ Market share of over 50% ■ LEM China increased its #1 position as largest manufacturing site of the Group ■ Most important market with 34% of (64% of total production, compared to total sales 58% in financial year 2014/15) ■ “Made by LEM” quality In C
Slide 18: Agenda
Agenda 1. LEM at a Glance 2. Highlights and Business Review 3. Financial Review 4. Strategy and Outlook LA 130/150-P 18
Slide 19: Income Statement
3. Income Statement In CHF millions Q4 Q1 Change Q1 Change 2014/15 2015/16 2014/15 Sales 61.5 61.5 -0.0% 65.0 -5.4% Gross margin 44.8% 45.0% +0.2pt 45.3% -0.3pt Operating expense -17.2 -17.2 -0.3% -15.9 +8.0% EBIT 10.3 10.5 +1.7% 13.5 -22.5% Net financial exp. +0.5 +0.5 -10.6% +0.1 +268.2% Income ta
Slide 20: Results by Quarter
3. Results by Quarter In CHF millions In % of sales CHF 2 million foreign 80 30% exchange impact on 70 65.0 66.5 64.7 25% EBIT margin in Q4 of 61.8 65.1 57.6 61.1 61.5 61.5 2014/15 60 20% Q1 vs. Q4 lower net 50 profit margin due to 15% non-renewal of one-off 40 10% tax effects in Q4 of 30 2014/1
Slide 21: Gross Margin
3. Gross Margin In CHF millions In % of sales Q1 Q4 Q1 140 50% 2014/15 2014/15 2015/16 49% Gross margin 29.4 27.5 27.7 120 in CHF millions 48% 100 47% Gross margin 45.3% 44.8% 45.0% in % of sales 46% 80 45% Adverse foreign exchange impact on gross 60 margin 44% Positive impacts on gross margin d
Slide 22: Operating Expense
3. Operating Expense In CHF millions In % of sales 70 30% Q1 Q4 Q1 2014/15 2014/15 2015/16 60 Operating 25% expense 15.9 17.2 17.2 in CHF millions 50 Operating 20% expense 24.4% 28.0% 27.9% in % of sales 40 15% Higher administration expense due to 30 introduction of new ERP system and organization
Slide 23: R&D Expense
3. R&D Expense In CHF millions In % of sales Q1 Q4 Q1 18 8% 2014/15 2014/15 2015/16 16 7% R&D expense 3.9 4.3 3.7 in CHF millions 14 6% 12 R&D expense 6.0% 6.9% 6.0% 5% in % of sales 10 4% 8 Maintained high investment in R&D for 3% both segments 6 Ongoing renewal of product range with 2% focus o
Slide 24: EBIT
3. EBIT In CHF millions In % of sales Q1 Q4 Q1 60 26% 2014/15 2014/15 2015/16 24% EBIT 13.5 10.3 10.5 50 in CHF millions 22% 20% EBIT 20.8% 16.8% 17.1% 40 in % of sales 18% 30 16% Continued cost control and high gross margins 14% 20 Adverse foreign exchange impact 12% 10% 10 8% 0 6% 11/12 12/13*
Slide 25: Financial Expense
3. Financial Expense In CHF millions Q1 Q4 Q1 2014/15 2014/15 2015/16 Exchange effect* +0.1 +0.6 +0.5 Other financial expense & income +0.0 -0.0 +0.0 Total +0.1 +0.5 +0.5 Positive exchange effect mainly driven by appreciation of USD Foreign exchange hedge gain of CHF 1 million in Q4 of 2014/15
Slide 26: Net Profit
3. Net Profit Q1 Q4 Q1 In CHF millions In % of sales 2014/15 2014/15 2015/16 50 20% Net profit 10.7 10.0 8.9 in CHF millions 45 18% Net profit 16.5% 16.2% 14.4% 40 in % of sales 16% 35 Q1 2014/15 +0.1 14% 30 -3.0 13.6 25 12% 10.7 20 10% EBIT Financial expense Income tax Net profit 15 8% Q1 2015/16 1
Slide 27: Agenda
Agenda 1. LEM at a Glance 2. Highlights and Business Review 3. Financial Review 4. Strategy and Outlook HLSR 27
Slide 28: Market Factors and Strategy
4. Market Factors and Strategy ■ We firmly believe in our strategic 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 businesses 28
Slide 29: Outlook
4. Outlook ■ For 2015/16 we expect ■ Volume growth (in number of transducers) in both segments ■ Price pressure und foreign exchange effects may adversely affect LEM, leading to uncertainty regarding sales growth ■ EBIT margin expected to be within the target range of 15 to 20% ■ Swiss franc to rema
Slide 30: Financial Calendar and Contact Details
Financial Calendar and Contact Details Financial calendar 11 November 2015 Half-year 2015/16 results 16 February 2016 Third quarter 2015/16 results 9 June 2016 Year-end 2015/16 results 30 June 2016 Ordinary General Meeting of the Shareholders for the year 2015/16 5 July 2016 Dividend ex-date 7 July