Business
LEM : Year End Results 2024/25
LEM : Year End Results
About this update from Lem Holding Sa
Full Year Results 2024/25 1 April 2024 to 31 March 2025 Agenda Welcome Andreas Hürlimann Highlights Frank Rehfeld Business Performance Frank Rehfeld Financial Results Thomas Mellano Outlook Frank Rehfeld Sustainability Frank Rehfeld Board Changes and Dividend Proposal Andreas Hürlimann FY 2024/25 in line with guidance; signs of recovery in H2 Strong rebounds in China and Automotive bookings Sales declined 24.4% in CHF, at constant exchange rates, the decrease was 23.5%; in sequential terms, Q4 2024/25 sales were up 2.3% compared to Q3 2024/25 Financial year was shaped by persistent market headwinds; while the first half was under pressure, we saw encouraging signs of recovery in the second half Automotive in China grew 14.8%, indicating that LEM is strengthening its position in this growing market EMEA saw significant declines, only Automotive showed a certain resilience; Americas remained weak, however, in Automotive LEM recorded a sequential improvement; Rest of Asia was characterized by a broad downturn Gross margin decreased only slightly, despite the under-absorption of production fixed costs thanks to continuous efforts in optimizing production costs and procurement activities Bookings were 7.8% above the previous year's level. The China region recorded a strong increase of 81.5%, while the Automotive business received 57.4% more bookings. The Book-to-bill ratio rose to 0.97 in Q4, compared to 0.82 in Q3 2024/25 Transformation program "Fit for Growth" Strategic Rationale & Objectives Company-wide initiative to improve competitiveness, agility, and customer proximity Supports the increasing business focus on Asia, driven by trends in e-mobility and renewables Organizational realignment to further improve empowerment and accelerate decision-making Geneva HQ to focus on Strategy and Innovation R&D capabilities being moved closer to Asian markets; expansion of R&D hub in Shanghai; Penang site now operating as a global dual-sourcing hub Shared Service Center in Bulgaria to absorb more transactional activities and be further expanded LEM enhances alignment between R&D and customer needs, strengthens supply chain resilience, and supports the path to mid-term EBIT targets and long-term sustainability Transformation program "Fit for Growth" Execution Plan, Organizational Changes, Financials & Innovations LEM is reducing approx. 150 positions, primarily in Europe, with a social support plan in place for those employees affected Executive Committee streamlined from 7 to 5 members (effective 1 April 2025) with EMEA and Americas to report directly to CEO New Executive Committee composition: Frank Rehfeld (CEO), Antoine Chulia (CFO), Verena Vescoli (CTO), Uwe Gerber (SVP Operations), John McLuskie (SVP Asia) EBIT improvement of CHF 18-22 million expected in FY 2025/26, with full annual savings of ~CHF 35 million from FY 2026/27, split equally between personnel cost reductions and other OPEX savings; runs within the planned timing One-off program costs of ~CHF 10 million, with CHF 7.9 million booked in FY 2024/25 Global R&D network expanded to meet regional customer and application needs Development of next-gen sensor technologies, AI-enhanced and wireless energy-harvesting solutions, in close collaboration with research and technology partners