Full Year Results 2023/24
1 April 2023 to 31 March 2024

AgendaWelcomeAndreas Hürlimann

Highlights

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

Sustainability ReportFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2023/24

28.05.2024

2

LEM with solid performance in FY 2023/24
Two different half-year periods in heterogeneous markets
We maintained sales in CHF at prior year level, at constant exchange rates, sales
increased by 7.2%
Sales driven mainly by our Track, Renewable Energy and Energy Distribution & High
Precision businesses
China challenging due to slow economic growth and declining exports of solarsystems; Rest of Asia with strong growth driven by electric and hybrid vehicles; bothregions influenced by significantly negative currency effects
EMEA extremely well in all business areas as supply chains normalized; Americas
with decent performance in the face of overall subdued investment activity
Gross margin decreased slightly due to higher input cost; continuing investments andbuild-up costs; the EBIT margin fell to 20.0%; in line with the long-term averageStarting from the previous year’s peak, bookings further normalized
LEM benefits from fundamental, environmentally friendly developments in the areasof electrification, renewable energies and e-mobility
Full Year Results 2023/24

28.05.2024

3

New R&D centers and cooperation partner
Customer proximity, local R&D and next generation chips in focus
In China, measures taken to become fasterand more agile include focusing on greater
customer proximity, strengthening local R&D,and expanding the R&D center in Shanghaialongside the one in BeijingNew R&D center in Sofia, Bulgaria (focus on
software development), and in Munich,Germany (semiconductors/ASIC design)
New cooperation partner TDK will supply nextgeneration sensor elements for our integrated
current sensors, whose performanceparameters will benefit our customers in theautomotive and industrial markets in the longterm
With its high investments in R&D, LEM
continues to drive innovation to extend its
technological leadership
Full Year Results 2023/24

28.05.2024

4

Production network expanded with fifth plant in Penang
Customer proximity, local R&D and next generation chips in focus
To meet our growth needs, LEM expanded its
manufacturing capacity with a new facility in Penang,
Malaysia
The opening ceremony took place on April 19 in thepresence of the Chief Minister of Penang, the Swiss
ambassador and business partners

The new site enables LEM to supply the Asian markets
as well as the USA and Europe from Asia. It is also well
positioned in proximity to semiconductor manufacturers
The facility currently operates three production lines andwill significantly expand its capacity in the near future
From around 70 people in April 2024, the headcount will
increase to several hundred over the next five years
The fifth plant complements the global network ofproduction facilities in Beijing, Sofia, Geneva, and Tokyo
Full Year Results 2023/24

28.05.2024

5

AgendaWelcomeAndreas Hürlimann

Highlights

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

Sustainability ReportFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2023/24

28.05.2024

6

A leading company in electrical measurement
FiveBusinesses

Automation

Automotive

Renewable
EnergyEnergy Distribution& High Precision

Track

FY 2023/24 Sales
CHF m

120.0

98.6

70.8

60.955.5

Δ CHF-11.9%

-2.1%

+5.6%

+2.6%

+29.1%Δ constant exchange
rates

-5.5%

+6.8%

+14.8%+8.2%+35.4%

Full Year Results 2023/24

28.05.2024

7

Sales distribution by business
Balanced Portfolio

Growth led by Track, Renewable Energy& Energy Distribution
Automation development in line with theglobal economic trend
GrowthSales

FY 23/24

Q4 23/24

CHF m

vs 22/23

vs 22/23

Automation

120.0-11.9%-25.6%

Automotive

98.6

-2.1%

-15.3%

Renewable Energy70.8+5.6%-19.3%

Energy Distribution & High Precision

60.9+2.6%

-4.2%

Track

55.5

+29.1%

+9.0%

TOTAL

405.8

-0.1%*-14.9%

Renewable Energy business in China
impacted by destocking
The positive market environment in Trackwas supported by equipment upgrades inEurope
Anticipation of industry trends is crucial tooptimally position LEM* +7.2% at constant exchange rates

Full Year Results 2023/24

28.05.2024

8

Automation
Drives, robots, tooling machines, elevators, and HVACFYFYQ4Q4CHF m2023/24

2022/232023/242022/23Sales

120.0

136.3

25.6

34.5

Significant slowdown in demand after a relatively
solid first half of the year
Business driven, among others, by the trend towards
sustainable and customer-oriented solutions inmanufacturing, especially in EMEA, where LEM isexcellently positioned with its products
China with slightly weaker sales due to declining
machine exports

Full Year Results 2023/24

28.05.2024

9

Automotive
Battery (EV & CE), motor control, and onboard charging
FYFYQ4Q4

CHF m

2023/242022/232023/242022/23

Sales

98.6

100.7

21.5

25.4Business showed moderate growth year-on-yearwith weaker momentum in the second half of theyear
Strong demand for battery management systems,
engine control and onboard chargers in EMEA andSouth Korea
Most important market China below prior-year
period, cost initiatives and a Key Account program
have resulted in the first intended improvements
Full Year Results 2023/24

28.05.2024

10Renewable energy
Solar and wind
FY

FY

Q4

Q4

CHF m

2023/242022/232023/242022/23

Sales

70.8

67.0

13.5

16.7

Strong demand from EMEA, Americas, Japan andIndia with a slowdown from the third quarter
onwards
Declining business in China based on lower exportsof solar power equipment and destocking
Price pressure was noticeable in China and Europe
Fundamental growth trend for renewable energies
in China intact
Full Year Results 2023/24

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11

Energy distribution and high precision
Charging stations, smart grid, energy storage, and high precision
FY

FY

Q4

Q4CHF m2023/242022/232023/242022/23

Sales

60.9

59.4

15.8

16.6

Business achieved steady growth in an increasinglycompetitive environment that also effects OEMs
DC Meter for fast charging stations with gooddemand, despite a significant slowdown in thesecond half of the year as customers hesitated toinvest year-end

Products for smart grid developed solidly
Testing and measurement business was impacted
by a weaker second half of the year due to thegeneral slowdown in e-mobility
Full Year Results 2023/24

28.05.2024

12

TrackTrains, metro, and trackside
FY

FY

Q4

Q4

CHF m

2023/242022/232023/242022/23

Sales

55.5

43.0

12.7

11.6

Starting from a weak prior-year baseUpgrade of energy meters for locomotives createdadditional demand in EMEA
China also recorded robust growth, supported by apositive market environment

Full Year Results 2023/24

28.05.2024

13

Sales distribution by region

Balanced exposure

EMEA and Rest of Asia lead growth
America performed well despite subdued
investments from the second quarter onwards
GrowthSales

FY 23/24

Q4 23/24

CHF mvs 22/23

vs 22/23

China

119.7

-24.2%-36.8%

Rest of Asia

82.3

+15.9%

-2.6%

EMEA

156.5

+22.6%+0.9%

Americas

47.3

-5.0%

-17.1%

TOTAL

405.8

-0.1%*-14.9%* +7.2% at constant exchange rates

China challenging due to slow economic growth,
declining exports of solar inverters, lower sales of
products for e-mobility, some market share losses
in both segments, and significantly negative
currency effects

LEM accelerated measures for greater agility,
cost reductions, local R&D and local decisionmaking
Full Year Results 2023/24

28.05.2024

14

AgendaWelcomeAndreas Hürlimann

Highlights

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea BorlaOutlook

Frank Rehfeld

Sustainability ReportFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2023/24

28.05.2024

15

Performance at a glance

FY 2023/24
CHF m

FY 23/24

Q4 23/24

vs 22/23

vs 22/23

Orders received

243.3-47.7%-46.3%

Sales

405.8

-0.1%*-14.9%

EBIT

81.1-12.1%-50.6%Net profit

65.3-13.3%-50.7%* +7.2% at constant exchange rates

Starting from the previous year's peak, bookings further normalized
Sales at constant exchange rates increased 7.2% driven by underlying demandand normalization of supply chains
EBIT margin declined to 20.0% in line with the long-term average; Investments infuture prospects and severance costs had a negative impact on profitability

Net profit decreased mainly due to a lower operating result, with a slight positiveeffect from lower taxes
Full Year Results 2023/24

28.05.2024

16Gross margin
FY
CHF m

FY

Q4

Q4

2023/24 2022/23 2023/24 2022/23

Gross profit

189.2

192.2

40.3

49.4

In % of sales

46.6%

47.3%

45.2%

47.1%

Gross margin decreased slightly by 70 basis pts:The gross profit margin was 46.6%, in line with thelong-term average
Higher costs for electronic components andprovisions for slow-moving inventories had anegative impact, while the improved business mix
had positive
Full Year Results 2023/24

28.05.2024

17SG&AFY
CHF mSG&A
In % of sales

FYQ4

Q4

2023/24 2022/23 2023/24 2022/23
74.4

68.1

20.3

18.1

18.3%

16.8%

22.7%

17.3%

SG&A increased slightly by 150 basis pts:
LEM continues to invest in digitization projects,
such as the first successful introduction of thenew ERP system
Build-up costs for the new production facility inMalaysia
Severance costs resulted from the layoff of 40employees
Full Year Results 2023/24

28.05.2024

18

R&DFYCHF mFYQ4Q42023/24 2022/23 2023/24 2022/23

R&D

33.9

32.2

8.4

7.4

In % of sales

8.3%

7.9%

9.4%

7.1%

R&D investments at unchanged high level of 8.3% ofsales
Continued innovation to extend technologicalleadership
Increased R&D headcount by 30 engineers

Invest in future applications and opened two newR&D centers

Full Year Results 2023/24

28.05.2024

19

Financial expense
FYFYQ4Q42023/24

2022/232023/242022/23

Exchange effect

(3.3)

(1.9)

1.1

0.2

Other financial expense & income

(2.8)

(1.3)

(0.8)

(0.4)

Total

(6.1)

(3.3)

0.3

(0.2)

CHF m

Negative foreign currency effects due to the appreciation of the CHF against
major currencies
Higher interest rates and higher average debt led to increased interest expensesof CHF 1.5 million

Full Year Results 2023/24

28.05.2024

20

Income taxes
FY
2023/24

FY
2022/23

Expected income tax rate

16.3

15.6

Expected withholding tax rate

(0.1)

0.8

Expected tax rate16.2

16.4

Effect of changes in tax rate on deferred tax

(2.3)

0.0

Other differences

(1.0)

(1.1)

Effective tax rate

12.9

15.3%

Tax rate without one-off at 15.5%
Effective tax rate 12.9% due to the increase in deferred tax assets as a result ofthe increase in the Canton of Geneva tax rate from 1 January 2024 and the saleof an IP to LEM China

Full Year Results 2023/24

28.05.2024

21

Income statement
FY

FY

Q4

Q4

CHF m

2023/242022/23

Change2023/24

2022/23

Sales

405.8

406.4

-0.1%

89.2

104.7

Gross profit margin %

46.6%

47.3%

-0.7%pt

45.2%

47.1%

Operating expenses(108.1)(100.0)+8.1%(28.6)(25.5)

81.1

92.2-12.1%

11.8

23.8

EBIT margin %

20.0%

22.7%

-2.7%pt

13.2%

22.8%

Net financial expenses

(6.1)

(3.3)

+87.0%

0.3(0.2)

Income tax(9.6)(13.6)-29.0%

(2.2)

(3.5)

Net profit

65.3

75.3

-13.3%

9.9

20.1

16.1%

18.5%

-2.4%pt

11.1%

19.2%

EBIT

Net profit margin %Full Year Results 2023/24

28.05.2024

22Balance sheet

CHF m31.3.2024

31.3.2023

Net working capital

76.5

75.4

Non-current assets

172.6

153.9

Non-current liabilities(38.8)(39.0)Net operating assets

210.2

190.3

Net cash/(debt)(43.1)(21.8)

Equity

176.7

173.6

Equity ratio

51.3%

53.0%

Days of sales outstanding

7672

Days of inventory outstanding

110102

Days of payables outstanding4754• Non-current assets increased, mainly due
to new production site in Malaysia andtwo new R&D centers• Net working capital increased slightly as aresult of the business activity• Equity ratio down to 51.3%

Full Year Results 2023/24

28.05.2024

23

Cash flow

CHF mFY
2023/24

FY2022/23

Profit before tax

75.0

Adjustment for non-cash items and taxes paid

5.6

Cash flow from changes in net working capital(6.2)• Cash flow from operating
88.9
activities is dropping as aconsequence of the lower
9.0
profit before tax(11.0)Cash flow from operating activities

74.4

87.0

Cash flow from investing activities(31.6)• Increasing investment mainly
due to new Malaysia plant(26.5)

Free cash flow

42.9

60.5

Cash flow from financing activities(39.8)(54.9)

Change in cash and cash equivalents

3.1

5.6

Cash and cash equivalents at the end of the period

23.7

21.8

Full Year Results 2023/24

28.05.2024

24

AgendaWelcomeAndreas Hürlimann

Highlights

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

Sustainability ReportFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2023/24

28.05.2024

25

28.05.2024

Full Year Results 2023/24

26

Outlook – Financial Year 2024/25
LEM expects market development to be moderate in thecurrent financial year.
The main reason for some headwind is that it will stilltake time for customers to reduce their inventories,
particularly in the Renewable Energy and Automation
markets

Based on forecasts from customers, LEM expects thesituation to improve during the second half of 2024/25

Full Year Results 2023/24

28.05.2024

27

AgendaWelcomeAndreas Hürlimann

Highlights

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

Sustainability ReportFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2023/2428.05.2024

28

Strong improvement on Sustainability
Solid foundations to build up the LEM sustainability strategy

8 material ESG topics (* mandatory as per Swiss law)

Double Materiality Assessment conducted to identify
the 8 material ESG topics on which LEM will focus.
KPIs defined such as reducing Scope 1 and Scope 2
emissions by 90% until 2025.
Concrete actions implemented such as senior
management bonus linked to emission reduction.

On the governance side, a dedicated team has beencreated with clear roles, responsibilities, andaccountabilities throughout the organization.

Information on the importance of sustainability for
LEM’s business strategy and purpose, and on theESG priorities, can be found in the separate
Sustainability Report published for the first time.
Full Year Results 2023/24

28.05.2024

29

AgendaWelcomeAndreas Hürlimann

Highlights

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

Sustainability ReportFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2023/24

28.05.202430

Dr. Libo Zhang proposed as new BoD member
Experienced Board Professional and Corporate Finance Advisor.
Dr. Libo Zhang will bring many years of experience inmanagement positions in the areas of finance, controlling andcommercial processes in international industrial companies.
Among other mandates, she is a member of the Board ofDirectors of the Swiss technology group VAT.
Previously, Ms. Zhang was CFO of the automotive
manufacturer Borgward Group AG in Germany and of FFG
Europe & Americas, a worldwide specialist in the toolingmachine industry. Before, she held senior management
positions in finance and commercial operations at SGL Group,a global manufacturer of carbon-based products, at MTU AeroEngines and at MAN SE.
Ms. Zhang is German citizen and holds a PhD in Economics
and an MBA from Georg-August University in Göttingen,Germany.

Full Year Results 2023/24

28.05.2024

31

Proposed dividend of CHF 50 per share
Payout ratio of 87.3% in line with LEM’s dividend policy
The LEM dividend policy targets a payout ratio
significantly above 50% of the consolidated net
profit for the financial year.
The Board of Directors proposes a dividend of
CHF 50 per share, down from CHF 52
This represents a payout of 87.3% (up from78.7%) and a dividend yield of 2.9% (as per31 March 2024).

The proposal is based on the solid performancein 2023/24 and the trust in the long-term
fundamentals of the business and LEM’s future.
The net dividend will be paid on 4 July 2024.

Full Year Results 2023/24

28.05.2024

32

The long-term investor view
LEM provided significant returns to shareholders over the past 10 years

Share price development from 31 March 2014 to 31 March 2024: +242%

Distributed dividends over the past 10 years: CHF 485m (incl. FY 2023/24 proposal by BoD)

Full Year Results 2023/2428.05.2024

33

Q&A

Full Year Results 2023/24

28.05.2024

34

Financial calendar and contact details
The financial year runs from 1 April to 31 March

For further information

27 June 2024

Andrea Borla, CFO

Annual General Meeting for the financial year
2023/24

2 July 2024

Dividend ex-date

4 July 2024

Dividend payment date

26 July 2024

First quarter results 2024/25

11 November 2024

Half year results 2024/25

7 February 2025

9 months results 2024/25

27 May 2025

Full year results 2024/25

Phone: +41 22 706 12 50
E-mail: investor@lem.com

Full Year Results 2023/24

28.05.2024

35

life
energymotion