Half Year Results 2024/25
1 April 2024 to 30 September 2024
Agenda
Opening Remarks | Frank Rehfeld |
Business Performance | Frank Rehfeld |
Financial Results | Andrea Borla |
Introduction Interim CFO | Thomas Mellano |
Outlook & Mid-Term Ambitions | Frank Rehfeld |
Half Year Results 2024/25 11.11.2024 2
LEM with weak first half in 2024/25
Significant sales declines in all markets led to a setback in margins
LEM experienced a 29.9% top-line decline largely influenced by sluggish market conditions; at constant exchange rates the decrease was 29.0%
China confirmed stabilization trends despite a weak economy due to growth in Automation, Automotive and DC meter business; Rest of Asia with a broad-based downturn, worsened by high inventory in Automation and delayed Automotive platform launches
EMEA weakened significantly compared to the strong first semester; Americas with weak performance in the face of overall subdued investment activity
The significant decline in sales led to an EBIT margin setback to 9.1% due to the associated under-absorption of fixed costs, as well as a less favorable product and geographic mix
We expect a subdued business environment in the second half of 2024/25, with full-year sales between CHF 290 and 310 million and a high single-digit EBIT margin
Considering the outlook, LEM has launched the "Fit for Growth" performance improvement program to review the organizational structure, operating expenses, and indirect costs
Half Year Results 2024/25 11.11.2024 3
Environmentally friendly trends to continue
LEM continues to drive innovation
LEM benefits from fundamental, environmentally friendly trends in the areas of electrification, renewable energies and e-mobility
With our high investments in R&D, LEM continues to drive innovation to strengthen and expand its technological leadership
New and expanded R&D centers in Munich, Germany, and Shanghai, China, to accelerate our innovation process
The new Penang site enables the extension and flexibilization of our production footprint
Half Year Results 2024/25 11.11.2024 4
Agenda
Opening Remarks | Frank Rehfeld |
Business Performance | Frank Rehfeld |
Financial Results | Andrea Borla |
Introduction Interim CFO | Thomas Mellano |
Outlook | Frank Rehfeld |
Half Year Results 2024/25 11.11.2024 5
A leading company in electrical measurement
Five | Automation | Automotive | Renewable | Energy Distribution | Track | |||||
Businesses | ||||||||||
Energy | & High Precision | |||||||||
HY 2024/25 Sales | 45.2 | 39.8 | 25.5 | 23.7 | 22.4 |
CHF m | |||||
Δ CHF | -32.4% | -25.3% | -37.6% | -27.3% | -24.7% |
Δ constant exchange | -31.5% | -24.4% | -36.5% | -26.6% | -24.1% |
rates |
Half Year Results 2024/25 11.11.2024 6
Sales distribution by business
14%
29%
15%
16%
26%
Growth | |||
Sales | HY 24/25 | Q2 24/25 | |
CHF m | vs 23/24 | vs 23/24 | |
Automation | 45.2 | -32.4% | -33.7% |
Automotive | 39.8 | -25.3% | -23.4% |
Renewable Energy | 25.5 | -37.6% | -42.7% |
Energy Distribution & High Precision | 23.7 | -27.3% | -32.6% |
Track | 22.4 | -24.7% | -27.8% |
TOTAL | 156.5 | -29.9%* | -31.9% |
* -29.0% at constant exchange rates |
All business segments experienced a significant decline to a comparable extent
The reason was the global electronics industry facing significant headwinds
Automation affected by the difficult economic environment, low investment activity and high inventory levels
Automotive with heterogeneous end markets, partly driven by customer specific achievements and market share gains
Renewable Energy end markets remain subdued
Half Year Results 2024/25 11.11.2024 7
Automation
Drives, robots, tooling machines, elevators, and HVAC
CHF m
140
120
100
80
60
40
20
0
20/21 | 21/22 | 22/23 | 23/24 | 24/25 |
HY | HY | Q2 | Q2 | |
CHF m | 2024/25 | 2023/24 | 2024/25 | 2023/24 |
Sales | 45.2 | 66.9 | 21.6 | 32.6 |
Business affected by the difficult economic environment in Europe and the low investment activity of customers, who still have high inventories that are only slowly returning to normal levels
China with slightly improved sales compared to the same period last year
FY sales | HY sales | |
Half Year Results 2024/25 11.11.2024 8
Automotive
Battery (EV & CE), motor control, and onboard charging
CHF m
120
100
80
60
40
20
0
20/21 | 21/22 | 22/23 | 23/24 | 24/25 | |
FY sales | HY sales | ||||
HY | HY | Q2 | Q2 | |
CHF m | 2024/25 | 2023/24 | 2024/25 | 2023/24 |
Sales | 39.8 | 53.4 | 19.9 | 26.0 |
Most important market, China, above prior-year period due to market share gains with Chinese OEMs and general market growth
New projects for battery management and inverter applications drove slight growth in Europe, despite an overall contracting market
Demand in the Rest of Asia and Americas regions severely suffered from weak end customer demand
Half Year Results 2024/25 11.11.2024 9
Renewable energy
Solar and wind
CHF m
70
60
50
40
30
20
10
0
20/21 | 21/22 | 22/23 | 23/24 | 24/25 | |
FY sales | HY sales | ||||
HY | HY | Q2 | Q2 | |
CHF m | 2024/25 | 2023/24 | 2024/25 | 2023/24 |
Sales | 25.5 | 40.8 | 11.4 | 19.8 |
Weak demand due to the sluggish rollout of solar capacities and global inventories remaining high
Declining exports in China were partly offset by satisfactory local market growth, where LEM gained market share
LEM observed an increase in project activities related to stable power supply for high-performance data centers
Half Year Results 2024/25 11.11.2024 10