LEM Holding SA · SIX:LEHN
LEM Holding SA — Q1 2009/10 Earnings Presentation
26 slides from LEM Holding SA's earnings presentation, Aug 6, 2009
Slide 1: Q1 Results Year 2009/10
Q1 Results Year 2009/10 1
Slide 2: Agenda
Agenda 1. LEM at a Glance 2. Business Review 3. Recession Management 4. Financial Review 5. Outlook 2
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 Production & Logistics World-Wide
1. LEM Production & Logistics World-Wide 4 6 August 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 in measurement SUV, HEV – Motor drives, power – Motor Control conversion AC/DC, power supplies, UPS, welding, medical scanners, new energies, leakage curre
Slide 6: Business Review
2. Business Review At the heart of power electronics
Slide 7: Highlights YTD Q1 2009/10
2. Highlights YTD Q1 2009/10 • After 3 quarters of negative book to bill, a positive book to bill ratio in Q1 2009/10 • Sales decreased to CHF 35.6 million, -36% to the prior year and -12% to prior quarter • Gross margin improved to 42.4% versus 39.7% in prior quarter • Operational EBIT of CHF 3.2 m
Slide 8: Net Sales
2. Net Sales CHF millions Sales Growth Growth Q1 to Q1 Q1 to Q4 CHF Millions Total Sales 35.6 -35.8% -12.3% Industrial 32.9 -35.8% -13.8% Automotive 2.8 -35.3% 10.3% 200 160 120 80 40 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Q1 2009/10 8 6 August 2009
Slide 9: Industrial Segment: regional markets
2. Industrial Segment: regional markets Sales Q1 to Q1 Q1 to Q4 ROW 1% growth rates Europe -40.4% -18.0% N. America -31.4% -25.8% Asia 29% Asia -24.5% -4.2% ROW -58.8% -19.1% Total -35.8% -13.8% N. America Europe 57% 13% Total sales CHF 32.9 million for Q1 2009/10 9 6 August 2009
Slide 10: Industrial Segment: business development
2. Industrial Segment: business development CHF millions Op. EBIT in % of sales 200 25 Market and Applications This quarter each market was impacted 160 20 by the recession: Industry: declined by 39.8 - specially in the areas of robotics and welding 120 15 Traction: decreased by 17.3% due to decline
Slide 11: Automotive Segment: regional markets
2. Automotive Segment: regional markets Sales Q1 to Q1 Q1 to Q4 Europe 10% growth rates Europe -17.0% -2.5% N. America -40.2% -10.3% Asia -34.2% 51.1% Asia 42% Total -35.9% 9.2% N. America 47% Total sales CHF 2.8 million for YTD Q1 2009/10 11 6 August 2009
Slide 12: Automotive Segment: business development
2. Automotive Segment: business development CHF millions Op. EBIT in % of sales 25 20 Market 20 15 • Further decline in production of US platforms 15 10 • Substantial increase to Asian customers 10 • Design-in obtained for several BMGT 5 and hybrid projects 5 0 0 2004/05 2005/06 2006/07 2007/08 2008
Slide 13: Business Development – Results for Industry Market
2. Business Development – Results for Industry Market New Business Region SoP SoP > CHF 0.5 million 2009/10 2010/11 Photovoltaic, Wind China Q1 Photovoltaic Japan Q4 Photovoltaic, Drives Germany Q3, Q4 Wind Scandinavia Q4 Drives, Air conditioning Scandinavia Q4 Photovoltaic, Wind Spain Q1 Drives, Ai
Slide 14: Business Development – Results for Automotive Market
2. Business Development – Results for Automotive Market New Business Application in volume SoP SoP > CHF 0.5 million 2009/10 2010/11 China BM, EV, HEV x Q2 Japan EV, HEV Q1 Japan BM Q4 Q2 Japan BM Q2 Japan EPS x Korea EV, HEV Q1 Europe BM x Q3 Europe EV, HEV Q4 Q1, Q2 USA EV, HEV, BM x Q4 Global F1
Slide 15: Business Development - China
2. Business Development - China Sales Production • Sales growth -7.3% • Continued transfer of key products • Market share now over 40% • “Made by LEM” quality • Production 60 commenced in new leased building in July 2009 20 CHF Millions CHF Millions 50 40 15 30 10 20 5 10 0 02/03 03/04 04/05 05/06 0
Slide 16: Recession Management
3. Recession Management At the heart of power electronics
Slide 17: Recession Management - Q1 was profitable
3. Recession Management - Q1 was profitable CHF millions Q1 2008/09 Q2 2008/09 Q3 2008/09 Q4 2008/09 Q1 2009/10 Orders 58.1 53.3 39.2 34.4 36.4 received Sales 55.5 55.5 45.1 40.7 35.6 Operational 12.0 9.4 4.1 3.7 3.2 EBIT Strict cost reductions of production and overhead costs, implemented since Q
Slide 18: Financial Review
4. Financial Review At the heart of power electronics
Slide 19: Income Statement
4. Income Statement Q1 Q4 Q1 TCHF 2008/09 2008/09 2009/10 Sales 55’494 40’667 35’644 Gross margin % 47.5 39.7 42.4 SG&A (14’357) (12’363) (11’933) Operational EBIT* 11’982 3’776 3’187 EBIT 9’649 3’438 (1’125) Financial expense 652 332 (233) (net) Income taxes (2’956) (1’406) 71 Net earnings 7’345 2’
Slide 20: Gross margin development
4. Gross margin development CHF millions GM % of sales Continued transfer of production 90% to China Rightsizing of capacities 90 75% Improvement of gross margin 75 compared to Q3 and Q4 2008/09 60% 60 45% 45 30% 30 15 15% 0 0% 2004/05 2005/06 2006/07 2007/08 2008/09 Q1 20 6 August 2009 2009/1
Slide 21: Operational EBIT development
4. Operational EBIT development after change in conditions of the SOP CHF millions Op. EBIT % of sales 35 25% Operational EBIT of 8.9% of sales 30 20% 25 20 15% 15 10 10% 5 0 5% 2004/05 2005/06 2006/07 2007/08 2008/09 Q1 2009/10 ‐5 21 ‐10 0% 6 August 2009
Slide 22: Net earnings
4. Net earnings after change in conditions of the SOP CHF millions % of sales Negative effect of revaluation of cash settled stock option plan of CHF 4.3 million 15% 20 15 10% 10 5% 5 0% 0 2004/05 2005/06 2006/07 2007/08 2008/09 Q1 2009/10 22 ‐5 ‐5% 6 August 2009
Slide 23: Outlook
5. Outlook At the heart of power electronics
Slide 24: Market Factors and Strategy
5. Market Factors and Strategy The present recession challenges our growth strategy: – Weakness in important Industry market – Very weak market situation in Automotive – Weakness in energy savings and renewable energy We firmly believe in our Strategic Direction • The underlying market trends contin
Slide 25: Outlook
5. Outlook Our fast and firm reaction to the recession will enable us to be stronger coming out of the downturn. • 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 • We belie
Slide 26: Financial Calendar and Contact Details
5. Financial Calendar and Contact Details Financial calendar 6 August 2009 Q1 2009/10 results 5 November 2009 Q2 2009/10 results 9 February 2010 Q3 2009/10 results 3 June 2010 Full year 2009/10 results For further information Paul Van Iseghem Heinz Stübi President and CEO CFO Tel.: +41 22 706 14 09