Lem Holding Sa · SIX:LEHN
Lem Holding Sa — FY2004/05 Earnings Presentation
34 slides from Lem Holding Sa's earnings presentation, Jun 3, 2005
Slide 1: New Growth Momentum – Media and Analysts' Conference FY 2004/05
At the heart of power electronics At the heart of power electronics New Growth Momentum Media and Analysts’ Conference FY 2004/05 Zurich, 3 June 2005 050603 1
Slide 2: Agenda
Agenda At the heart of power electronics Felix Bagdasarjanz • Highlights 2004/05 Chairman • Strategy overview Kennerth Lundgren • Financial review 2004/05 CFO Paul Van Iseghem • Strategy and business review CEO Continuing Operations • Outlook Felix Bagdasarjanz • Questions and answers Chairman 05060
Slide 3: Agenda
Agenda At the heart of power electronics Felix Bagdasarjanz • Highlights 2004/05 Chairman • Strategy overview Kennerth Lundgren • Financial review 2004/05 CFO Paul Van Iseghem • Strategy and business review CEO Continuing Operations • Outlook Felix Bagdasarjanz • Questions and answers Chairman 05060
Slide 4: Highlights
Highlights At the heart of power electronics Strategy • Strategic realignment: divestment of the Instruments business (ongoing) and the Real Estate holding CTN (concluded) • Focus on the core technology and fast-growing applications of transducers for measuring electrical parameters Results • Organi
Slide 5: Sales breakdown
At the heart of power electronics 050603 MCHF 0 20 40 60 80 100 120 140 160 180 200 88 89 90 Others 91 92 Instruments 93 94 95 Industrial & Automotive 96 97 9 99 8 /0 Sales breakdown 0 00 /0 '0 1 1/ 0 '0 2 2/ 0 '0 3 3/ 0 '0 4 4/ 05 5
Slide 6: EBIT breakdown
At the heart of power electronics 050603 MCHF -10 -5 0 5 10 15 20 25 93 94 Others 95 Instruments 96 97 98 Industrial & Automotive 99 /0 0 00 /0 1 EBIT breakdown '0 1/ 02 '0 2/ 03 '0 3/ 04 '0 4/ 05 6
Slide 7: Strategy review: conclusion
Strategy review: conclusion At the heart of power electronics • Instruments – Lack of resources to reach business leadership • Current and voltage transducers – LEM’s core know-how – Solid growth and profitability – Attractive opportunities in existing and new markets 050603 7
Slide 8: Status of divestment projects
Status of divestment projects At the heart of power electronics • Divestiture CTN real estate – Transaction closed on March 31, 2005 • Divestiture LEM Instruments – Sale to Danaher announced on December 23, 2004 – Anti-trust investigation in UK pending 050603 8
Slide 9: Proposals to the Annual Shareholders' Meeting
Proposals to the Annual Shareholders’ Meeting At the heart of power electronics • Capital repayment by a reduction of the par value – CHF 10.2 million in total, CHF 34 per share • Abrogation of article 6ter – Today, the Board has option to restrict voting rights to 10% of issued shares – Optional cl
Slide 10: Agenda
Agenda At the heart of power electronics Felix Bagdasarjanz • Highlights 2004/05 Chairman • Strategy overview Kennerth Lundgren • Financial review 2004/05 CFO Paul Van Iseghem • Business review and strategy CEO Continuing Operations • Outlook Felix Bagdasarjanz • Questions and answers Chairman 05060
Slide 11: Financial review: highlights
Financial review: highlights At the heart of power electronics • CTN divestiture – Reduction payoff of mortgage – Significant reduction of net debt – Book loss of CHF 6.4 m – Cash inflow of CHF 15 m • Changes in IFRS standards, main impacts – IAS 1: Presentation & disclosures – IFRS 3: No more goodw
Slide 12: Key figures: profit and loss account
Key figures: profit and loss account in CHF million 2003/04 2004/05 At the heart of power electronics Continuing Operations Sales 107.8 135.9 Gross margin in % 43.5% 44.5% Overheads 44.3 46.8 EBIT 2.6 13.7 Net financial expense (0.7) (2.2) Earnings before taxes 1.8 11.5 Income taxes (1.4) (4.6) Net
Slide 13: From EBIT to net earnings
From EBIT to net earnings At the heart of power electronics 16 13.7 14 2.2 12 EBIT in CHF m 10 4.6 8 0.9 6 4 5.7 2 0.3 0 EBIT 2004/05 Net financial Taxes Instruments Loss on CTN Net earnings Continuing expense Continuing Discontinuing disposal Operations Continuing Operations Operations after Operat
Slide 14: Segment results
Segment results At the heart of power electronics in CHF m Sales EBIT EBITDA 2003/04 106.2 6.6 10.8 Industrial 2004/05 124.3 14.3 18.3 2003/04 1.6 -4.0 -3.1 Automotive 2004/05 11.7 -0.6 0.5 2003/04 107.8 2.6 7.7 Continuing Operations 2004/05 135.9 13.7 18.8 2003/04 53.3 0.6 4.3 Discontinuing Operati
Slide 15: Performance Industrial
Performance Industrial At the heart of power electronics 160 14% 140 12% EBIT margin in % of sales 120 10% Sales in CHF m 100 8% 80 6% 60 4% 40 20 2% 0 0% 2000/01 2001/02 2002/03 2003/04 2004/05 Sales EBIT margin 050603 15
Slide 16: Performance Automotive
Performance Automotive At the heart of power electronics 14 12 10 8 6 In CHF m 4 2 0 -2 -4 -6 2000/01 2001/02 2002/03 2003/04 2004/05 Sales EBIT loss 050603 16
Slide 17: EBIT improvement Continuing Operations
EBIT improvement Continuing Operations At the heart of power electronics 18 Automotive 16 1.6 13.7 14 4.1 0.9 EBIT in CHF m 12 10 Industrial 8 9.5 6 4 2.6 2 0 EBIT 2003/04 Additional gross Restructuring Other net EBIT 2004/05 margin from following increase in sales growth Instruments overheads dives
Slide 18: Key figures: cash flow and balance sheet
Key figures: cash flow and balance sheet At the heart of power electronics in CHF m 2003/04 2004/05 Cash flow statement Continuing Operations Cash flow from operations 9.8 10.0 CAPEX -3.7 -4.9 Free cash flow 5.9 5.6 Balance sheet Shareholders’ equity 68.4 66.5 Net interest bearing debt 58.3 1.2 Liqu
Slide 19: Agenda
Agenda At the heart of power electronics Felix Bagdasarjanz • Highlights 2004/05 Chairman • Strategy overview Kennerth Lundgren • Financial review 2004/05 CFO Paul Van Iseghem • Strategy and business review CEO Continuing Operations • Outlook Felix Bagdasarjanz • Questions and answers Chairman 05060
Slide 20: Our strategy
At the heart of power electronics Our Our strategy: strategy: •• Be Bethe theglobal globalleader leaderininproviding providingTransducers Transducersto tomeasure measure electrical electricalparameters parameters •• Develop Developnew newapplications applicationsininnew newmarkets marketsusing using
Slide 21: Highlights of our strategic developments and the year 2004-05
Highlights of our strategic developments and the year 2004-05 At the heart of power electronics 1. Business development & growth 2. Technology AND market driven 3. Following our customers to Asia 4. Operational excellence 050603 21
Slide 22: Industrial: regional markets
1. Business development & growth Industrial: regional markets At the heart of power electronics Sales 2004/05 Sales growth rates 2004/05 in CHF million 7% Region Growth W. Europe China 119% 48% 28% Japan 13% North America Western Europe 13% Asia NAFTA 7% Rest of the World Average 17% 17% Total: CHF
Slide 23: Industrial: business development
1. Business development & growth Industrial: business development At the heart of power electronics • Market – 45+% market share and increasing 140 15 124.3 – Strengthened relations to the OEMs 120 106.2 EBIT-Margin in % Sales in CHF m in power electronics 100 10 11.5 80 • Applications 60 – Industry
Slide 24: Automotive: regional markets
1. Business development & growth Automotive: regional markets At the heart of power electronics Sales 2004/05 Customers 2004/05 in CHF million • GM 6% 6% • Honda • Volvo Europe Nafta AP 88% Total: CHF 11.7 million 050603 24
Slide 25: Automotive: business development
1. Business development & growth Automotive: business development At the heart of power electronics • Market 14 11.7 – Market in early growth stage 12 Sales in CHF m • Applications 10 8 – Battery management 6 – Various drives markets 4 1.6 • Drivers 2 0 – Increased reliability & performance 2003/04
Slide 26: Expand into new technologies and new markets
2. Technology AND Market driven Expand into new technologies and new markets At the heart of power electronics Application Know-how in customer markets Industry Traction & trackside Automation Industrial Automotive Application Application Battery Rogowski Hall Cell Specific Specific SOH Fluxgate O/L
Slide 27: Following our customers to Asia: Japan
3. Following our customers to Asia Japan: presence since 1988 At the heart of power electronics • April 2000 acquisition => NANALEM – Production: CHF 36.0 m • Major dip mid 2001- mid 2002 – Production: CHF 18.5 m • Jan 2003 acquisition Hinode – Production: +CHF 4.8 m • 2004-05 – Production: CHF 34.0
Slide 28: Following our customers to Asia: China
3. Following our customers to Asia China: presence since 1989 At the heart of power electronics • WOFE since end 1997 • Key figures 20003/04 – Sales CHF 4.1 m – Production CHF 2.3 m • Key figures 2004/05 – Sales CHF 9.1 m – Production CHF 3.6 m • Focus local market and low cost plant for LEM globall
Slide 29: Operational excellence: Industrial supplier of choice
4. Operational excellence Industrial: supplier of choice At the heart of power electronics • Global sales and logistics force with seamless presence for key customers across all continents • Best service, quality and cost – Award of ‘world class supplier’ by a global customer for 3th consecutive qua
Slide 30: Operational excellence: Automotive second generation products
4. Operational excellence Automotive: second generation products At the heart of power electronics • Operational performance – Optimization of supply chain – Assuring sufficient value added – Consistent first class quality • Milestones 05-06 – Develop second generation automotive products for batter
Slide 31: Outlook
Outlook At the heart of power electronics • The outlook for LEM’s Continuing Operations is positive – After the strong growth in 2004/05, business in 1HY will remain flat due to the general economic slowdown – Sales and operating earnings for the full year should at least match the level of the prev
Slide 32: Summary
Summary At the heart of power electronics • Clearly defined strategy – Reinforce focus on core competencies in current and voltage transducers – Use core technology to grow into new applications and markets – Thrive on the back of the trends of integration, miniaturization and performance increase •
Slide 33: Agenda
Agenda At the heart of power electronics Felix Bagdasarjanz • Highlights 2004/05 Chairman • Strategy overview Kennerth Lundgren • Financial review 2004/05 CFO Paul Van Iseghem • Strategy and business review CEO Continuing Operations • Outlook Felix Bagdasarjanz • Questions and answers Chairman 05060
Slide 34: Financial calendar and contact details
Financial calendar and contact details At the heart of power electronics Financial calendar For further information 1 July 2005 Dr. Felix Bagdasarjanz Annual Shareholders’ Meeting Chairman Tel.: +4179 677 53 37 8 August 2005 E-mail: [email protected] 1st quarter result Paul Van Iseghem 1