LEM Holding SA · SIX:LEHN
LEM Holding SA — 9M 2007/08 Earnings Presentation
15 slides from LEM Holding SA's earnings presentation, Feb 7, 2008
Slide 1: LEM delivering dynamic growth in the Components Business
LEM delivering dynamic growth in the Components Business 9 month results 2007/08 February 7, 2008 Agenda 1. LEM at a glance 2. Business Review 3. Financial Review 4. Outlook 2 Feb 07, 2008 1
Slide 2: About LEM / products & technologies
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: Global footprint and markets served
1. LEM at a glance …. global footprint Production Centers: Adaptation Centers: Geneva, Switzerland 340 employees Milwaukee, USA 25 employees Beijing, China 360 employees Tver, Russia 85 employees Tokyo, Japan 150 employees Direct sales, agents, reps and distributors, worldwide 5 Feb 07, 2008 1. LEM
Slide 4: Highlights and Net Sales
2. Highlights YTD Q3 2007/08 • 11.6% increase in sales to CHF 148.5 million • Gross margin improves from 41.1% to 45.4% Before change in the conditions of the SOP • 61.2% EBIT increase to CHF 27.0 million • 100.4% Net earnings increase to CHF 19.3 million After change in the conditions of the SOP •
Slide 5: Industrial Segment: regional markets and business development
2. Industrial Segment: regional markets ROW 3% Sales growth rates YTD Q3: Asia 27% • Europe 20.0% • N. America -4.8% • Asia 9.5% Europe • ROW 37.5% 55% N. America • Total growth 13.7% 15% Total sales CHF 133.0 million for YTD Q3 2007/08 9 Feb 07, 2008 2. Industrial Segment: business development Grow
Slide 6: Industrial highlights and Automotive regional markets
2. Industrial Segment: business development Highlights • Industry: – Motor drives – new major customers acquired – Renewable energies - increase of sales for wind and solar by 50% • Traction: – EM4T product to measure energy consumption performing well – High sales in Europe and BRIC countries • Ene
Slide 7: Automotive Segment: business development
2. Automotive Segment: business development Market: US car manufacturers 25 Market: US car manufacturers 24 with depressed production, with depressed production 22 especially SUVs. 20 20 18 Sales in CHF million 16 14 15 12 EBIT margin in % 10 10 8 6 4 5 2 0 -2 0 -4 2003/04 2004/05 2005/06 2006/07 YT
Slide 8: Automotive new market sales projection and China development
Automotive Segment: new market development - sales projection In the sales funnel: • Asia: Japan BMGT Japan hybrids • Europe: multiple BGMT projects 50 40 Design-in: 30 • N. America: 2nd key customer BMGT M CHF 20 hybrids 10 • Asia: China hybrid 0 • Europe: German hybrid 2007/08 2008/09 2009/10 2010
Slide 9: Profit and Loss; Gross margin development
3. Profit and Loss CHF million YTD Q3 2006/07 YTD Q3 2007/08 YTD Q3 2007/08 pro forma Sales 133.1 148.5 148.5 Gross margin 41.1% 45.4% 45.4% Operating costs 38.0 40.4 46.2 EBIT 16.7 27.0 21.2 Net financial (0.5) (0.0) (0.0) expenses Income taxes (6.6) (7.7) (6.7) Tax rate 40.7% 28.6% 31.4% Net earni
Slide 10: EBIT development and Net earnings
3. EBIT development after change in conditions of the SOP •Higher gross margin 20 20% CHF million 10 10% % of sales 0 0% 8 3 4 5 6 7 /0 /0 /0 /0 /0 /0 07 02 03 04 05 06 20 20 20 20 20 20 3 Q TD Y EBIT increases from CHF 16.7 million to CHF 21.2 million 19 Feb 07, 2008 3. Net earnings after change in
Slide 11: Financial result and taxes; Balance Sheet
3. Financial result and taxes YTD Q3 2007/08 • Financial results – Favorable exchange rates (EUR) were main driver for favorable financial result in Q3 2007/08 (CHF -0.007 million compared to CHF -0.534 million) • Taxes – Tax rate of 31.4% in YTD Q3 2007/08 (PY 40.7%) was positively influenced by •
Slide 12: Cash flow and summary financial results
H1 2007/08 3. Cash flow CHF million HY 1 2006/07 HY 1 2007/08 Net earnings from operations 6.2 12.3 Cash flow from operating activities 2.3 8.5 Cash flow from investing activities -3.0 -3.6 Free cash flow -0.8 4.9 Cash flow from financing activities -13.4 -11.3 Change in cash and cash equivalents -1
Slide 13: Market factors providing strong tailwind; Technology
4. Market factors providing strong tailwind Renewable Battery Motor Traction Energy Mgmt controls market More Reliable Energy Mobility Energy Energy efficiency 25 Feb 07, 2008 4. Technology Flagship products that were launched 2006/07 – Minisens – Wi-LEM – Sentinel • Design-in and market channel dev
Slide 14: Outlook
4. Outlook (1/2) We can confirm our positive outlook for the year • The increase in net earnings will surpass our guidance to be well above 45% for the year. (before change in stock option plan conditions) • The target for sales growth of between 6 and 8% will be met at the top end. • For the Automo
Slide 15: Financial calendar and contact details
4. Financial calendar and contact details Financial calendar 5 June 2008 Full year results 27 June 2008 Annual Shareholders’ Meeting For further information Paul Van Iseghem Ageeth Walti President and CEO CFO Tel: +41 22 706 14 09 Tel: +41 22 706 12 30 Email: pvi@lem.com Email: awa@lem.com 29 Feb 07