LEM Holding SA · SIX:LEHN
LEM Holding SA — H1 2008/09 Earnings Presentation
26 slides from LEM Holding SA's earnings presentation, Nov 6, 2008
Slide 1: Half Year Results 2008/09
Half Year Results 2008/09 At the heart of power electronics
Slide 2: Agenda
Agenda 1. Business Review 2. Financial Review 3. Outlook 2 November 6, 2008
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
Slide 4: LEM Production & Logistics World-Wide
1. LEM Production & Logistics World-Wide Production Centers: Adaptation Centers: Geneva, Switzerland 330 employees Milwaukee, USA 25 employees Beijing, China 400 employees Tver, Russia 100 employees Tokyo, Japan 150 employees 4 November 6, 2008
Slide 5: Highlights YTD Q2 2008/09
1. Highlights YTD Q2 2008/09 • Sales increase of 12.7% to CHF 111.0 million • Sales growth at constant exchange rates was 17.5% • Gross Margin increase by 0.3 percentage points to 46.0% • EBIT increase by 18.5% to CHF 21.3 million • Net Earnings increase by 29.8% to CHF 16.0 million • Strong balance
Slide 6: Net Sales
1. Net Sales CHF millions Sales Growth Total Sales 111.0 12.7% Industrial 101.9 15.7% CHF millions Automotive 9.2 -12.2% 6 November 6, 2008
Slide 7: Industrial Segment: Regional Markets
1. Industrial Segment: Regional Markets Sales growth rates H 1 • Europe 21.9% • N. America -1.8% • Asia 11.6% • ROW 4.5% • Total growth 15. 7% Total sales CHF 101.9 million for YTD H1 2008/09 7 November 6, 2008
Slide 8: Industrial Segment: Business Development
1. Industrial Segment: Business Development Market Sales in CHF millions • Growth well above industry average especially in energy efficiency and renewable energy areas • Market share growing to near 50% Applications • Industry: motor drive controls, energy conversion and wind & solar energy • Tract
Slide 9: Automotive Segment: Regional Markets
1. Automotive Segment: Regional Markets Sales growth rates H1: • Europe -9.6% • N. America -35.2% • Asia 85.0% • Total growth -12.2% • At constant FX rates -5% Total sales CHF 9.2 million for YTD H1 2008/09 9 November 6, 2008
Slide 10: Automotive Segment: Business Development
1. Automotive Segment: Business Development Market: US car manufacturers with depressed production Market • Poor performance of US car Sales in CHF millions manufacturers continued • Design-in obtained for several battery management and hybrid projects Applications • Battery management also for hybr
Slide 11: Automotive Segment: New Market Development Sales Projection
1. 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 Designed-in, SOP 2009 and 10: • North America: 2nd and 3rd customer BMGT, hybrids and Mot
Slide 12: China Development H1 2008/09
1. China Development H1 2008/09 Sales Production • Sales growth 36.3% • Production volume increased by 141% • Continued transfer of key products • “Made by LEM” quality, site audited by several key customers • Lease signed for a new building in China 12 November 6, 2008
Slide 13: Financial Review
2. Financial Review At the heart of power electronics
Slide 14: Profit and Loss
2. Profit and Loss CHF millions H1 2007/08 H1 2008/09 Change Sales 98.5 111.0 +12.7% Gross margin 45.1 51.0 Gross margin in % 45.7% 46.0% Operating costs 27.1 29.6 EBIT proforma * 18.0 21.4 Additional SOP costs 0 (0.1) EBIT 18.0 21.3 +18.5% Net financial income 0.1 0.3 Income taxes (5.8) (5.6) Tax r
Slide 15: Gross Margin Development
2. Gross Margin Development • Volume effect • Impact from transfer of CHF millions production to China Gross margin increases from 45.7% to 46.0% 15 November 6, 2008
Slide 16: EBIT Development
2. EBIT Development • Growth of 18.5% versus PY • ROS improved from CHF millions 18.2% to 19.2% 16 November 6, 2008
Slide 17: Net Earnings
CHF millions 2. Net Earnings • Higher EBIT • Tax rate decreases from 31.8% to 25.7% Net earnings increase from CHF 12.3 million to CHF 16.0 million 17 November 6, 2008
Slide 18: Consolidated Balance Sheet HY 2008/09
2. Consolidated Balance Sheet HY 2008/09 TCHF 31.09.2007 31.03.2008 31.09.2008 Cash and cash equivalents 13’227 25’787 19’172 Trade debtors 37’588 41’169 49’442 Other current assets 1’724 2’051 2’786 Inventories 26’269 22’411 32’847 Total non-current assets 23’402 24’541 26’960 Total assets 102’210
Slide 19: Cash Flow Statement HY 2008/09
2. Cash Flow Statement HY 2008/09 TCHF H1 2007/08 H1 2008/09 Net earnings from operations 12’318 15’994 Cash flow from operating activities before 11’366 19’412 changes in NWC Changes in net working capital (NWC) (2’842) (8’007) Cash flow from investing activities (3’608) (4’232) Free cash flow 4’91
Slide 20: Summary
2. Summary • Sales increase of 12.7% to CHF 111.0 million • Sales growth at constant exchange rates was 17.5% • Gross Margin increase by 0.3 percentage points to 46.0% • EBIT increase by 18.5% to CHF 21.3 million • Net Earnings increase by 29.8% to CHF 16.0 million • Strong balance sheet and cash po
Slide 21: Outlook
3. Outlook At the heart of power electronics
Slide 22: Market Factors Providing Strong Tailwind
3. Market Factors Providing Strong Tailwind 22 November 6, 2008
Slide 23: At the heart of power electronics
November 6, 2008 At the heart of power electronics
Slide 24: Innovation: new Flagship Products
3. Innovation: new Flagship Products For this FY we are preparing the launch of: • Transducers with high precision and an improved technology developed by LEM • New generation of transducers for industrial battery management • Transducers for surface mounted automatic assembly 24 November 6, 2008
Slide 25: Outlook
3. Outlook • We have commenced the year with a strong first half • The turmoil is also affecting LEM • The current global economic situation is uncertain but we are confident about our strategy • We expect sales of about CHF 190 million 25 November 6, 2008
Slide 26: Financial Calendar and Contact Details
3. Financial Calendar and Contact Details Financial calendar 10 February 2009 Q3 2008/09 results 4 June 2009 Full year 2008/09 results For further information Paul Van Iseghem Ageeth Walti President and CEO CFO Tel.: +41 22 706 14 09 Tel: +41 22 706 12 30 E-mail: pvi@lem.com Email: awa@lem.com 26 No