LEM Holding SA · SIX:LEHN
LEM Holding SA — FY2007/08 Earnings Presentation
19 slides from LEM Holding SA's earnings presentation, Jun 5, 2008
Slide 1: Results Year 2007/08 Media & Analyst Conference
Results Year 2007/08 Media & Analyst Conference Zurich, 5 June 2008 Agenda 1. Highlights and Business Review Paul Van Iseghem 2. Financial Review Ageeth Walti 3. Strategy and Outlook Paul Van Iseghem 4. Proposals Shareholders’ Meeting Felix Bagdasarjanz 5. Questions All 2 5 June 2008
Slide 2: Highlights and Business Review: Results
1. Highlights and Business Review Paul Van Iseghem President & CEO 3 5 June 2008 1. Results 203 MCHF 45.1% 30.3 MCHF +10.0% +3.1 p.p. +18.6% SALES GROWTH GROSS MARGIN OPERATING PROFIT 21.7 MCHF 18.4 CHF +38.9% +38.3% NET EARNINGS EARNINGS / SHARE 4 5 June 2008
Slide 3: Highlights and Business Review
1. Highlights Marketing and Sales • Overall growth of 10.0% with – Traction market +23% – Energy & Automation market +62% – Renewable energy market +60% – BRIC Industrial market +29% – Automotive sales -4.8% (-1.2% at constant exchange rates) Operations • Continuation of transfer of production to Ch
Slide 4: Business Review – Sales by Segment
1.2 Business Review – Sales by Segment Sales CHF millions • Industrial 182.8 • Automotive 20.2 Sales growth YoY: • Industrial 11.9% • Automotive – 4.8% Growth at constant exchange rates: • Industrial 12.4% • Automotive -1.2% Total Sales CHF 203.0 million 7 5 June 2008 1.2 Business Review – Industria
Slide 5: Industrial Segment and Automotive Segment
1.2 Business Review – Industrial Segment Market % • Growth well above industry average especially in energy efficiency and renewable energy areas. • Market share of 49% Applications • Industry: motor drive controls, energy conversion and wind & solar energy. • Traction: general market and energy met
Slide 6: Automotive Segment; Production & Logistics World-Wide
1. Business Review – Automotive Segment % Market % • Substantial decline in production of US platforms • Design-in obtained for several BMGT and hybrid projects Applications • Battery management also for HEVs • Motor Controls • New starts of production in 2009 Sales EBIT margin 11 5 June 2008 1.3 LE
Slide 7: China Development; Technology
1.3 China Development Sales Production • Sales growth 22.6% • Production volume tripled over last year • Continued transfer of key products • “Made by LEM” quality, site audited by several customers • Lease signed for a new building in China 13 5 June 2008 1.3 Business Review – Technology • Flagship
Slide 8: Financial Review: Income Statement
2. Financial Review Ageeth Walti CFO 15 5 June 2008 2. Income Statement 2007/08 TCHF 2006/07 2007/08 % Proforma* Sales 184’555 203’033 203’033 10.0% Gross margin % 42.0 45.1 45.1 Operating costs 51’930 56’958 61’290 EBIT 25’557 34’630 30’298 18.6% Net financial expenses (712) (1’413) (1’413) Income
Slide 9: Exchange Effect on Sales; Gross Margin Development
2. Exchange Effect on Sales Currency Impact at constant exchange rates CNY 0.6% EUR (3.3%) GBP 0.5% JPY 3.8% USD 6.3% TOTAL 0.6% • At constant exchange rates sales growth would have been 10.6% instead of 10.0% • Euro increase compensates USD decrease 17 5 June 2008 2. Gross Margin Development CHF 20
Slide 10: Operating Expenses; R&D Expenses
2. Operating Expenses CHF 2006/07 2007/08 2007/08 millions Proforma* Opex 51.9 57.0 61.3 Opex 28.1% 28.1% 30.2% % Sales * Before changes in the conditions of the stock option plans • Proforma operating expenses remain at 28.1% of sales, but increased due to additional R&D and sales resources 19 5 Ju
Slide 11: EBIT; Financial Expenses
2. EBIT CHF 2006/07 2007/08 2007/08 millions Proforma* EBIT 25.5 34.6 30.3 EBIT 13.8% 17.1% 14.9% %Sales * Before changes in the conditions of the stock option plans 21 5 June 2008 2. Financial Expenses TCHF 2006/07 2007/08 Financial expenses (1’083) (965) Financial income 294 287 Exchange effect 77
Slide 12: Taxes; Net Earnings
2. Taxes 2006/07 2007/08 Expected tax rate 37.3% 28.2% One-time effects (0.2%) (3.3%) Effective tax rate 37.1% 24.9% • Expected tax rate reduced: change of profit mix, creation of LEM International for trading flows • One-time effects due to tax return and release of tax provision following the clos
Slide 13: Consolidated Balance Sheet; Cash Flow Statement
2. Consolidated Balance Sheet TCHF 31.03.2007 31.03.2008 Cash and cash equivalents 19’798 25’787 Trade debtors 33’632 35’204 Other current assets 7’234 8’016 Inventories 25’082 22’411 Total non-current assets 22’420 23’174 Total assets 108’166 114’592 Trade payables 14’446 15’819 Other short-term li
Slide 14: Capital Employed and ROCE; Summary Financial Results
2. Capital Employed and ROCE CHF milllions 2006/07 2007/08 CE 53.4 47.7 ROCE 52% 60% 27 5 June 2008 2. Summary Financial Results • Profitable growth – 10.0% sales growth; 38.9% increase in net earnings – Despite change in conditions of SOP, impact of CHF - 4.3 million in 2007/08 • Solid balance shee
Slide 15: Strategy and Outlook
3. Strategy and Outlook Paul Van Iseghem President & CEO 29 5 June 2008 30 5 June 2008
Slide 16: Market Factors Providing Strong Tailwind; Automotive New Market Development
3. Market Factors Providing Strong Tailwind 3. Automotive Segment: New Market Development Sales Projection In the sales funnel: • Asia: Japan BMGT and hybrids • Europe: multiple BMGT projects, Stop and Go • N. America: additional BMGT and hybrid projects • ROW: Brazil BMGT Designed-in, SOP 2009 and
Slide 17: Outlook; Proposals for the Shareholders' Meeting
3. Outlook We have closed our year on a quarter of high sales and expect this positive trend to continue. • Our major customers and our bookings level confirm this favorable outlook • Given the current economic environment we would like to remain cautious at this early time of the year 33 5 June 200
Slide 18: Proposals for the Shareholders' Meeting; Summary
4. Proposals for the Shareholders’ Meeting In view of the strong performance and solid balance sheet the Board of Directors has decided to propose: • Ordinary dividend payment of CHF 7.00 per share • Extraordinary dividend payment of CHF 4.00 per share • Represents a payout ratio of 58% 35 5 June 20
Slide 19: Financial Calendar and Contact Details
4. Financial Calendar and Contact Details Financial calendar 27 June 2008 Annual Shareholders’ Meeting 7 August 2008 Q1 2008/09 results 6 November 2008 Q2 2008/09 results 10 February 2009 Q3 2008/09 results 4 June 2009 Full year 2008/09 results For further information Paul Van Iseghem Ageeth Walti P