H1 Results and Capital Markets Day
8 November 2022, Geneva

Welcome
Andrea Borla, Chief Finance Officer

Program
Welcome & H1 results
10.40 – 10.45

WelcomeAndrea Borla, Chief Finance Officer

10.45 – 11.35

H1 results + webcast

Frank Rehfeld, Chief Executive Officer, Andrea Borla, Chief Finance Officer

11.45 – 12.15

Strategic overview

Frank Rehfeld, Chief Executive Officer

12.15 – 13.00

Lunch

13.00 – 13.45

Electric Commercial Vehicles

Frank Steinert, Fraunhofer Institute13.45 – 14.25

Automotive and Charging Infrastructure

Rainer Bos, SVP Europe/Americas, Bastien Musy, VP Global Product Management

14.25 – 14.40

Break

14.40 – 15.20

Integrated Current Sensors

Thomas Hargé, VP Integrated Current Sensors

15.20 – 16.00

Research & Development

Ian McNutt, VP Advanced Engineering and Software, Dominik Schläfli, Head of Innovation

16.00 – 16.30

Keeping close to our customers

Maxime Rau, VP Sales Excellence

16.30 – 16.40

Closing remarks

Andrea Borla, Chief Finance Officer

Capital Markets Day

Factory tour
16.40

First coach to Geneva Airport

16.40 – 17.00

Break and kitting-up for factory tour

17.00 – 17.45

Factory tour for four groups

17.45

Second coach to Geneva Airport

Cocktail
17.45 – 18.30
18.30

Cocktail
Last coach to Geneva Airport

Capital Markets Day 2022

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Capital Markets Day
8 November 2022, Geneva

What we hope you take away from today
Understanding and appreciation of …
Mega trends driving our growth

Breadth and depth of our portfolio
The benefits of being a pure player in current sensors
The growth potential of electric vehicles, renewable power generation and charging infrastructure
The importance of Integrated Current Sensors (ICS) for existing and new applications
Key technologies driving our investments
The foresight and focus of our R&D organization
The strength of our customer relationships over decades

But above all, this is your opportunity to meet the team leading LEM’s bright future

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Strategic overview
Frank Rehfeld, Chief Executive Officer

What is ingenuity?

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7

LEM solutions in theelectricity value chain

Megatrends
Key milestones in the pathway to global net zero emissions by 2050 Scenario
Annual CO2 emissions in Gt

40
35

30
25

Other
Industry

20

Transport

Buildings

15

Electricity and heat

10
5
0
2020

2025

2030

2035

All new buildings are
zero-carbon-ready

Most applications
and cooling systems
sold are best in class

50% of existingbuildings are
retrofitted to zerocarbon-ready levels

60% of global car
sales are electric

50% of heavy trucksales are electric

Net zero emissions
electricity globally

No new ICE car sales
1020 GW annual
solar and windadditions2040
50% of heating
demand met by heat
pumps

2045

2050

More than 85% ofbuildings are zerocarbon-ready
Almost 70% global ofelectricity generation
comes from solar PV
and wind

All industrial electricmotors sold are bestin class

Source: International Energy Agency (2021), Net Zero by 2050, IEA, Paris

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LEM is strategically well positioned to benefit
from megatrends
Megatrends
ENERGY EFFICIENCY
Hailed as the cleanest, cheapest, most reliable
source of energy, i.e. the energy we can avoid
using

DECARBONIZATION
Energy production and use account for two
thirds of global GHG emissions; industry underpressure to decarbonize

DIGITALIZATION
IoT – ubiquitous connected power consuming
devices and smart sensors on the power

ELECTRIFICATION
Certain energy uses get electrified, mainly
heating and road transport

Impact on LEM
Automation
Track
Smart Grid

++

Wind
Solar
Storage++

Smart Grid
Uninterrupted
Power Supply+

Automotive
Charging
Infrastructure+++

From an analog, fossilfired, centralized
system where
dispatchable supply
matches demandvariations

To a digital,
renewable-based,customer-centric
system, where flexible
demand meets avariable supply

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Current and voltage total market: +12% p.a.
Global current sensor market(CHF m)4'000

Key drivers for the total market:
Electrification of automotive
Charging infrastructure

3'500

Energy distribution

3'000

Total market includes different
measurement technologies

2'500
2'000

LEM focuses mostly on DC-based current
measurement

1'500

LEM’s market share is currently 20%

1'000
500
0
2022

2027
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LEM portfolio overview

250 Product families
3000 Active product references
Measuring from0.005 - 24,000 amps

Capital Markets Day 2022 08.11.2022 13

New megatrends drive volume mix
LEM’s portfolio mix by revenue
100%

1,2

90%
1

80%
70%

0,8

60%
50%

0,6

40%
0,4

30%
20%

0,2

10%
0%

0
2012

2015

2018

Megatrends business

2022
BudgetHeritage business

2025
SBP

2027
SBP

More of LEM’s revenue islinked to structural megatrends,
i.e., electrification anddecarbonization
This reduces the share ofheritage businesses from 65%
in 2012 to 34% by 2027
New portfolio mix helps limit
the impacts of economic
recessions#REF!

Includes Automation, Track, HIP and UPS
Includes Automotive, Renewable Energy, Smart Grid, Charging Infrastructure

Capital Markets Day 2022 08.11.2022 14

LEM global footprint
1,600 people, 15 countries, 5 production and R&D sites

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15

The team here today
Speakers

Frank Rehfeld
Chief Executive Officer

Andrea Borla
Chief Finance Officer

Rainer Bos
SVP Europe/Americas

Bastien Musy
VP Global ProductManagement

Thomas Hargé
VP Integrated Current
Sensors

Dominik Schläfli
Group Head of Innovation

Frank Steinert
Head of Department
Vehicle Systems,
Fraunhofer Institute

Ian McNutt
VP Advanced Engineeringand Software

Maxime Rau
VP Sales Excellence

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The team here today
Other leaders

Andreas Hürlimann
Chairman of the Board

Verena Vescoli
Chief Technology Officer

Martin Hoffmann
Strategic Accounts
Manager

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Q&A

Program
Welcome & H1 results
10.40 – 10.45

WelcomeAndrea Borla, Chief Finance Officer

10.45 – 11.35

H1 results + webcast

Frank Rehfeld, Chief Executive Officer, Andrea Borla, Chief Finance Officer

11.45 – 12.15

Strategic overview

Frank Rehfeld, Chief Executive Officer

12.15 – 13.00

Lunch

13.00 – 13.45

Electric Commercial Vehicles

Frank Steinert, Fraunhofer Institute13.45 – 14.25

Automotive and Charging Infrastructure

Rainer Bos, SVP Europe/Americas, Bastien Musy, VP Global Product Management

14.25 – 14.40

Break

14.40 – 15.20

Integrated Current Sensors

Thomas Hargé, VP Integrated Current Sensors

15.20 – 16.00

Research & Development

Ian McNutt,VP Advanced Engineering and Software, Dominik Schläfli, Head of Innovation

16.00 – 16.30

Keeping close to our customers

Maxime Rau, VP Sales Excellence

16.30 – 16.40

Closing remarks

Andrea Borla, Chief Finance Officer

Capital Markets Day

Factory tour

16.40

First coach to Geneva Airport

16.40 – 17.00

Break and kitting-up for factory tour

17.00 – 17.45

Factory tour for four groups

17.45

Second coach to Geneva Airport

Cocktail
17.45 – 18.30

18.30

Cocktail

Last coach to Geneva Airport

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Automotive
Rainer Bos, Senior Vice President Europe/Americas

Introduction
The automotive industry is going through unprecedented changes

Electrification is underway and there is no way backElectrification of automotive powertrains and the deployment of charging infrastructure is posing
significant challenges to corporations in the value chain

LEM plays a pivotal role in the electrification journey as a provider to solutions for electrificationof the automotive industry

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Electrification is accelerating

EVs will represent about 30% of worldwide car production in 2027
PHEV + BEV annual car production (m units)
31
27
23
19

19
14
10

5

6

7

23

15
13

11

8

4

2020

PHEV = Plug-In Hybrids
BEV = Battery EVs
2021

2022

2023
2020 projections

2024

2025

2026

2027

2022 projections

Source: IHS alternative propulsion forecast, LEM analysis

Capital Markets Day 2022

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The current sensor market for Automotive
Market evolution from 2022 to 2027
Automotive current sensor market(CHF m)Battery management systems
Range autonomy
Thermal management for safety aspects

1 500

Motor control
Deployment of 800V architectures (size and
cost)

1 000

Power conversion
Sensors monitor DC DC converters
500

Electrical safety
Residual current detection sensors areprotecting consumers from electrical hazards-

2022
Source: IHS + LEM

2027

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An unparalleled product portfolio in the industry
LEM is the sole pure player in current sensing
Motor control

HC16

Power conversion

HC5FW

HMSR

Diverse product portfolio
High level of customizationGO

HAH3DR

Key process: final calibration
Embedded software

Battery management

Electrical safety

Expertise in automotive regulations

CAB 1500
HBCT
CDSR

CDT x2HSBBVCapital Markets Day 2022

08.11.2022 24

LEM’s contribution to the Automotive sector

Cost optimization and system safety are paramount to EV adoption
Market trends

PerformanceLongest driving range
at the optimum cost
Scalable platforms
Compact, simple
DesignSystem efficiency
System integration
De-risk supply chain

Cost

Safe, fun, driving
experience at a fair price
Reducing CO2
emissions
System safety (fire)Consumer protection(while charging)
Reliability
Extended driving range

LEM expertise
Knowhow of our customers’
systems
Accuracy and performance
Functional safety expertise
Integrated Current
Sensing solutions (chip sized)
Provide rugged, reliable, smart
sensing solutions

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Adjacent markets

Growth opportunities beyond passenger cars
2030 projections

Share electrified (in %)Sales forecast (in M units)

Passenger vehicles

> 40%

40M

2-3 wheelers

> 50%

50M

Buses

> 60%

0.2M

L/M/H Commercial Vehicles

~ 30%

6M

Source: Bloomberg NEF, IEA
Credits: Honda, Rivian, Traton

Capital Markets Day 2022

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Conclusion
LEM is at the heart of the electrification of the industry

Current sensing is a key enabler to the adoption of affordable, safe, fun-to-driveElectric Vehicles. Performance matters

Our company offers unparalleled experience in current sensing and the largest portfolio in
the industry

The boom in the industry offers short and long-term growth opportunities for LEM

The company is ideally positioned to support customers in the electrification era

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Charging infrastructure
Bastien Musy, Vice President Global Product Management

Introduction
Enabling the access to fast, easy-to-find, and affordable charging

A seamless charging experience: a must for mass EV adoption

Cost transparency and reasonable prices are important to convince consumers

Regulatory landscape enforcing metering for better consumer information

LEM has developed innovative DC metering products for charging stations

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E-mobility infrastructure
How to charge an EV: AC and DC chargers
DC fast charger

AC destination charger

On-board charger

AC / DC

Lithium-ion battery

DC

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E-mobility infrastructure
AC or DC chargers: use cases
LEM focus
DC destination

AC home and work

Charging
power
Required time
to charge 30
km autonomy

DC fast: commercial & en-route

Charging
cable

WallboxPedestal

Wallbox

Fast

Super fastMega

3 – 8kW

3 – 16kW

9 – 16kW

22 – 50kW

50 – 250kW

250 – 400kW>400kW

60 min30 min30 min15 min

5 min

1 min

1 min

LEM DCBM
400/600

Capital Markets Day 2022

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Segmentation by geographies & regulations
Geography and regulation set DC metering requirements

North America•

Biden's Bipartisan Infrastructure Law$7.5 bn to build out a nationwide
network of 500,000 EV chargers•

DC energy metering regulated atcharger level•

California: first state to enforce
regulation in Jan 1st 2023

China

Europe•EU’s “fit for 55” plan commits to 3.5M
charging points by 2030•

Regulation at meter & charger levels•

National regulations amid European
harmonization

Source: White House, European Commission,
The State Council of the People’s Republic of China•

Peak carbon emissions by 2030 andcarbon neutrality reached by 2060•

Regulation at meter level, since2012•

Evolution of regulation towards
certification at charger level in 2023

Capital Markets Day 2022

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Charging market structure

LEM focuses on Charger Manufacturers and CPOs
Grid

Charging Infrastructure

EV

Charge Cable

DC meterAC / DC

Charger
Manufacturers

Charging Point
Operators (CPO)

Utility

EV user

LEM focus

Capital Markets Day 2022 08.11.2022 33

Creating a compelling offer for charging stations
LEM can leverage its unique portfolio
LEM’s large portfolio addresses 3 key functions
in charging stations:
LESR to regulate the power
CDSR to detect current leakage
DC meter to measure and issue certified billinginformation

Capital Markets Day 2022 08.11.2022 34

DC metering – market structure

LEM is the market leader on metering solutions for DC charging
DC Metering market (CHF m)
180

,180

160

,160

140

,140

120

,120

100

,100

80

,80

60

,60

40

,40

20

,20

0

2021

Wallbox (< 50 kW)

2022

2023

Fast charging station (50 -250 kW)

Source: Guidehouse EV Charging Equipment + LEM

2024

2025

Super charging station (250-400 kW)

2026

2027

Mega charging station (>400 kW)

Capital Markets Day 2022 08.11.2022 35

DC Metering – market structure
Value markets in Europe and US

Market value share 2021

Americas
Source: Guidehouse EV Charging Equipment + LEM

Market value share 2027

Asia

EMEA
Capital Markets Day 2022 08.11.2022 36

LEM’s market leadership in DC Metering
Strong brand equity owing to innovation and quality
Sensor Unit
Meter Unit

Innovative designfor easy integration in the
charging equipments.
Plug-and.play withcustomer systems

In-house expertise in
metrology to comply
with European and US
regulatory authorities

Manufactured in
Geneva, Switzerland

Testing and calibration
skills are key toguarantee top quality
products to ourcustomers

Capital Markets Day 2022 08.11.2022 37

Conclusion
A key growth opportunity for LEM
Mass EV adoption requires fit-for-purpose charging equipment, adapted to all types of usage

Massive government support for the rollout of charging infrastructures

Consumer information and transparent electricity billing is gradually enforced

LEM’s strong product portfolio and metrology expertise support the deployment of EV charging
infrastructure

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Q&A

Program
Welcome & H1 results
10.40 – 10.45

WelcomeAndrea Borla, Chief Finance Officer

10.45 – 11.35

H1 results + webcast

Frank Rehfeld, Chief Executive Officer, Andrea Borla, Chief Finance Officer

11.45 – 12.15

Strategic overview

Frank Rehfeld, Chief Executive Officer

12.15 – 13.00

Lunch

13.00 – 13.45

Electric Commercial Vehicles

Frank Steinert, Fraunhofer Institute13.45 – 14.25

Automotive and Charging Infrastructure

Rainer Bos, SVP Europe/Americas, Bastien Musy, VP Global Product Management

14.25 – 14.40

Break

14.40 – 15.20

Integrated Current Sensors

Thomas Hargé, VP Integrated Current Sensors

15.20 – 16.00

Research & Development

Ian McNutt,VP Advanced Engineering and Software, Dominik Schläfli, Head of Innovation

16.00 – 16.30

Keeping close to our customers

Maxime Rau, VP Sales Excellence

16.30 – 16.40

Closing remarks

Andrea Borla, Chief Finance Officer

Capital Markets Day

Factory tour
16.40

First coach to Geneva Airport

16.40 – 17.00

Break and kitting-up for factory tour

17.00 – 17.45

Factory tour for four groups

17.45

Second coach to Geneva Airport

Cocktail
17.45 – 18.30
18.30

Cocktail
Last coach to Geneva Airport

Capital Markets Day 2022

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Integrated Current Sensors
Thomas Hargé, Vice President ICS

Introduction
An Integrated current sensor is a miniature current sensor

It is the natural evolution for most of LEM’s sensors below 100 amps

It enters in new applications where size and cost were preventing the usage of other LEM sensors

It is built on standard semiconductor equipment allowing cost reduction while making the production
more scalable

LEM is winning on ICS through significant investments and focus as a pure player in sensors

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An ICS is a current sensor in a “chip”

Current carried by the lead frame

Generating a magnetic field

Measured through a Hall Chip

With galvanic isolation

Capital Markets Day 2022 08.11.2022 43

ICS will be used across all 5 businesses

ICS

Automation

Automotive

Renewable
EnergyEnergy Distribution& High Precision

Track

Capital Markets Day 2022 08.11.2022 44

ICS are the natural evolution of LEM current sensors
Miniaturization trend for LEM sensors below 100 amps

Product
release date

LTS / LTSR
2002

HLSR
2012

HMSR
2020

GXL
2023

VolumePerformance
Price
Capital Markets Day 2022 08.11.2022 45

ICS will represent a growing share of the whole market
Global current sensor market(CHF m)
4'000
3'500

Small but growing share in value

3'000
2'500

In units the share is more significant

2'000
1'500

~25% in 2022

1'000

~38% in 2027

500
0

16%
11%
2022

Current sensor except ICS

2027

ICS

Capital Markets Day 2022 08.11.2022 46

ICS address a large and fast growing market
Market and applications

Global ICS market (CHF m)
600

Automotive applications
Onboard chargers
DC/DC converters

400

New applications
Heat pumps
E-bikes

200

Industrial applications
2022

Industrial

2027

New

Source: IHS + LEM

Automotive

Motor controllers (Drives)
Solar inverters

Capital Markets Day 2022 08.11.2022 47

Matching solutions to customer needs
ICS solutions

HMSR:

GO:
Features:
Fast & accurate
Medium currents

Applications:E-bikes

Features:
Fast & accurate
Medium currents
High isolation

Applications:
Solar inverters

HMSR DA:
Features:
Digital output
Medium currents
High isolation

Applications:Servo drives

GXL:
Features:
Fast & accurateHigh current (80A)

Applications:Onboard chargers

Capital Markets Day 2022 08.11.2022 48

LEM will win through strong focus and investments
Product releases

Number of ICS products released

2010-20182019-2022

Competitors started earlier than LEM
14 ICS released between 2010 and 2018
Dominated by one player

LEM is already #2
4 products released since 2019100% focused on current sensors

Total: 14 productreleases

Total: 10 productreleases

We will continue to release products
Tailored to key applications
With best-in class performance

LEM

Competitors

Source: Companies' websites

Capital Markets Day 2022 08.11.2022 49

We leverage LEM’s know-how to build ICS products

Specification

Chip

Package

Test

LEM core competence

15 years ofexperience in chip
designNew expertise

New expertise

Development

Capital Markets Day 2022 08.11.2022 50

We use the fabless semiconductor model

Chip

Package

Test

DeliveryFoundry partner

Assembly partner

Test partner

LEM core
competence

Manufacturing

Capital Markets Day 2022 08.11.2022 51

We are building a team of passionate experts
ICS is a “start up” within LEM
Team organized for speed
Benefiting from LEM’s market access
Supported by LEM’s investment resources
With strong and diverse experts
Strong focus on talent development and acquisition
Bringing expertise from major semiconductor companies
Leveraging LEM’s 50 years of experience
Expanding outside Geneva
Most of the team is in Switzerland
Now recruiting in Lyon/Grenoble area
As well as in our new factory in Penang, Malaysia
Capital Markets Day 2022 08.11.2022 52

Conclusion

Integrated Current Sensors are changing the market offering by all players

They allow LEM to seize new opportunities

They address industrial and automotive applications as well as new markets

LEM is ideally positioned through application knowhow and ASIC
design expertise

We will win through consistent investment and focus

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Q&A

Research & Development
Ian McNutt, Vice President Advanced Engineering & Software
Dominik Schläfli, Group Head of Innovation

Introduction
Developing innovative products is integral to LEM’s company culture

LEM has a network of R&D centres across Europe and Asia

We anticipate industry trends to position LEM optimally

LEM continues to invest significantly in R&D to support future growth

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Organization
160 skilled engineers and project leaders and growing
GenevaInnovation
Advanced Engineering
Integrated Current Sensors
High Precision
Automotive
Electrical Safety

MachidaProduct Development

Lyon

Automotive

Product Development
Embedded Software
Metering
Automotive
Battery Management
Traction

Sofia
Product Development
Embedded Software
Smart Grid

Beijing
Product Development
Automotive
Renewables
Trackside
DrivesCapital Markets Day 2022 08.11.2022 57

Innovation process
The funnel from ideas to launch

Research

Development
Advanced engineering

Strategic
focus

Ideation

Deep
dive

Innovation project

Development

Company strategy

Product
launchMarket drivers
Tech demonstrator
Value proposition

New technology
Breakthrough ideas

Market & techvalidation

Potential
Capital Markets Day 2022 08.11.2022 58

Innovation process example
Sensor for photovoltaic generation
Ideation

Deep dive

Innovation
project

Advanced engineering

Product development

Iterations
Small package
high insulationhigh surge capability

Traditional
assembly
technology

Semiconductor
packagingtechnology

HMSR

HMSR DA

Unique combination ofhigh surge, high insulationfor 1500V applications

Improved sensor
with digital output

Capital Markets Day 2022 08.11.2022 59

Industry trends
Functional safety and security
Functional Safety
Protect human life and health
Laws of physics and probability

Example: Start & Stop
Sensor part of safety concept
Only stop engine if sufficient charge

Security
Protect systems
Malicious actors

Example: EV charging station
Energy meter for billing
Secure firmware update

Requires a standards compliant development processes
Requires new competencies and roles
System engineering
Functional safety management

Capital Markets Day 2022 08.11.2022 60

Industry trends
Factors facilitating miniaturization leading to multiple benefits

GaN
SiC

Next generation
semiconductors

Smaller passives

PackagingLess coolingSensors

Smaller
enclosures

Enabling technologies

System level benefits
Capital Markets Day 2022 08.11.2022 61

Strategic focus
Megatrends as a succession of waves
MATURITY
Automotive battery management
Stationary
battery

EV charging

Automotive
motor
control

Mega charging

Wind turbines

EXPANSION
Smart grid

Photovoltaics

TAKE OFF
Capital Markets Day 2022 08.11.2022 62

Pipeline

Challenges and opportunities
Smart gridBatteries

EV charging

MV DC microgrids
DC circuit breakers

MF converters
Advanced open loop sensor
Isolated current + voltage
Mega chargers
Electrical safety

RenewableenergySensing technology
Motor control

Timeline

System integration

2023-2025

2025-2027

2027-2029
Capital Markets Day 2022 08.11.2022 63

Pipeline example
Automotive battery management (BMS)

LEM’s first in BMS sensing
Highest accuracy
Fluxgate based
Under cost pressure

Shunt resistor + isolator
Precision resistive alloy
5 chipsHeating a challenge

Breakthrough Hall sensor

Magnetic core
1 chipMore reliable

Capital Markets Day 2022 08.11.2022 64

Pipeline example
Electrical safety for EVs, charging infrastructure, and photovoltaics

Source: Zentar

Minute difference currents
Magnetic core based
Only game in town
Expensive materials

Digital signal processing
Simpler, smaller magnetics
Same performance
Material savings (Cu, Ni, Co)

Advanced packaging
Smaller magnetics
Material substitution (ferrite)
Material savings (Cu)

Capital Markets Day 2022 08.11.2022 65

LEM success story – DC meter
New site, new team, new product
2017

2018

2019

2020

LEM Tech France
foundedTeam buildup

Product
development

Certification

First DC meter
plans

Partnerships created
Project started

Infrastructure built
upPartnerships withalpha customers

LEM Tech France, Lyon

Test bench

2021

2022

Ramp up production

Sales success

Delivery direct toend customer

Team have acquired worldclass expertise inmetering

Start of 100 amps
project

Fastest ever new productramp-up at LEM

DC meter in the field
Capital Markets Day 2022 08.11.2022 66

R&D investment
35'00010,0%R&D investment 2021/22 of CHF 29.3 million

9,0%30'0008,0%25'000

20'000

15'000

10'0007,0%Growth of teams in China and Bulgaria

6,0%Growth of ICS team in Geneva

5,0%

New R&D team in Lyon

4,0%

DC metering

3,0%Battery management

2,0%

Embedded software

5'000
1,0%
-

Since 2017 significant increase in investment

Innovation team increased

0,0%
11/12

12/13

13/14

14/15

15/16

Spend (kCHF)

16/17

17/18

18/19

19/20

20/21

21/22

Spend as % sales

Capital Markets Day 2022 08.11.2022

67

Conclusion

Investment in R&D continues at a high level

We closely follow the market and technological trends

We build new competencies to remain at the forefront of technology

Our teams have the skills to deliver high quality but cost optimized solutions
which our customers love

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Q&A

Keeping close relationships with customers
Maxime Rau, Vice President Sales ExcellenceIntroduction
We understand who our customers are and what they needWe are present at each step of the buying cycle and customer journey

LEM's value proposition
Qualified sales force
Ability to co-develop
Strong geographic coverage

50 years of success

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Who are our customers?
Three types of customers

Time to Market

Endorsers
Companies working as design centerson development contract basis with nointention to produce in volumes:- Eager to shine as innovativeand pushing technical boundaries- Able to influence their customers to
use their preferred solutions→ Require application knowhow

Trendsetters
Followers

Companies that influence market either
through:- Commercial scale / Global reachCompanies who are focused on- Technical leadershipshort time to market through:- Carry over of existing designs- Use of standard and alreadyapproved solutions→ Require strong relationship, codevelopment and loyalty→ Require fast local support

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Who are our customers?

Example: Advanced Design Engineer

ExpertProblem Solver

Highly demanding

Direct to blunt

Tenacious

Facts Oriented

Inquiring mind

Personality

Professional goals
Loves technical challenges
Does not like to do same things again
Is motivated by transforming ideas
into real products and patents
Enjoys exchanging with peers

Expectations from suppliers
Solution providers
Collaborative spirit
responsive

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Buying cycle and customer journeyEndorsers' + trendsetters' support is a long-term investment

Proof of concept
12-18 months

Design phase
18 months

Tenderingphase
6 months

Award toproduction
12 months

Mass production
7 to 15 years

Technical support

Commercial agreements

Mass production

Technical specifications creation
Sample generation
Testing and validation
Relationship building

Realisation of commercial
opportunities, interface withcustomer towards project delivery
to market

Reliable, optimized and safe service

4-5 years investment

7 to 15 years return
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LEM’s value proposition
How does LEM differentiate from competition?
Speed tosolve
issues
Flexibility/
Easy to workwith

Design-In
SupportCustomer
Intimacy
Application
Know-how
Stability inCustomer
relationship
Global Sales,
R&D andOperations
Footprint

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Qualified sales forces

Experienced, loyal and with strong technical background15.6 years average experience in Technical Sales
10.9 years average length of service for LEM
80% holding a Technical Engineering degree

Business Sector Sales background

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Co-development expertise
Example of collaboration"Customized Current Sensor
Enables High Power Density
Electric Vehicle Inverters"
Bodo's Power Systems, April 2021

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LEM global footprint
Close to customers for fast response

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Evolving with our long-term clients
Founder Jean-Pierre Etter sets the philosophy

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Supporting fast growing local businesses
Acceleration of revenue from pilot to multiple customers

Now one of the top 3 selling productfamily from LEM portfolio

Shorter time to market with followers from pilot engineering blocks
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Q&A

Closing remarks
Andrea Borla, Chief Finance Officer

What we hope you take away from today
Understanding and appreciation of …
Mega trends driving our growth
Significant R&D investment to capture opportunities
Breadth and depth of our portfolio

The growth potential of electric vehicles and charging infrastructure

The importance of Integrated Current Sensors (ICS) for existing and new applications
Continued development of our traditional businesses – Automation, Track, Renewable energy

Ambition to grow at least as quickly as the market – low double digits
CHF 600 million sales within the next five years (2027/28)
Maintaining EBIT margin of around 20%

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Program
Factory tour
16.40

First coach to Geneva Airport

16.40 – 17.00

Break and kitting-up for factory tour

17.00 – 17.45

Factory tour for four groups

17.45

Second coach to Geneva Airport

Cocktail
17.45 – 18.30
18.30

Cocktail
Last coach to Geneva Airport

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New global HQ “The Hive” in Meyrin, Geneva
Home to about 250 employees working in R&D, engineering,production, sales, and corporate functions
Symbol of our ambition and our way of working:AgilityTransparency
Collaboration

State-of-the art work environment, including spaces forinnovation
Reflects sustainability principles of our businesses
Will inspire current and future LEM people to fulfil theirpotential and continue devising ingenious solutions

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86Factory tour groups
Bastien Musy
Vice President Global
Product Management

Verena Vescoli
Chief Technology Officer

Frank Rehfeld
Chief Executive Officer

Maxime Rau
Vice President
Sales Excellence

Dominik Schläfli
Group Head of Innovation

Green group 17:00

Andrea Borla
Chief Finance Officer

Thomas Hargé
Vice President
Integrated Current
Sensors

Martin Hoffmann
Strategic Accounts
Manager

Yellow group 17:05

Rainer Bos
Senior Vice President
Europe/Americas

Ian McNutt
Vice President
Advanced Engineeringand Software

Blue group 16:50

Red group

16:55

Andreas Hürlimann
Chairman of the Board

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life
energymotion