Ad hoc announcement pursuant to Art. 53 LR

LEM with solid performance for full year 2023/24 in weakening
markets
Geneva, 28 May 2024 – LEM (SIX: LEHN), a global leader in electrical measurement for automation,e-mobility, renewable energy, power network and railroad applications, announces its results for thefull year of 2023/24 (April-March):•

LEM maintained sales at prior year level with CHF 405.8 million (full year 2022/23: CHF 406.4
million). At constant exchange rates, sales increased by 7.2%.

•

LEM achieved the strongest growth in the EMEA region with 22.6% and Rest of Asia reached15.9%. Americas decreased 5.0% while China was down 24.2% year-on-year due to the economic
slowdown. At constant currencies, growth in Rest of Asia was 26.0%, while the decline in China
was only 15.3%.

•

Starting from the previous year's peak, bookings further normalized to CHF 243.3 million(CHF 465.2 million); the book-to-bill ratio was 0.60.

•

EBIT declined by 12.1% to CHF 81.1 million (CHF 92.2 million); the EBIT margin amounted to
20.0%. Net profit decreased to CHF 65.3 million, resulting in a net profit margin of 16.1% (CHF 75.3
million; 18.5%).

•

Operating cash flow amounted to CHF 74.4 million (CHF 87.0 million).

•

The Board of Directors proposes a dividend of CHF 50 per share, representing a payout ratio of
87.3%.

•

Dr. Libo Zhang proposed as new member of the Board of Directors.

•

Sustainability strategy driven forward and first standalone Sustainability Report published.

•

LEM expects market development to be moderate in the current financial year. The main reason
for some headwind is that it will still take time for customers to reduce their inventories, particularlyin the Renewable Energy and Automation markets. Based on forecasts from customers, LEM
expects the situation to improve during the second half of 2024/25.

Frank Rehfeld, Chief Executive Officer, said: "LEM operates in markets in which the currency wasdevaluated against the CHF. The growth of more than 7% in constant currencies confirms theopportunities in our markets, however, remains below our ambition. In 2023/24, we saw two different
trends in the two half-year periods, which were characterized by both cyclical and structuraldevelopments. We were able to successfully develop our businesses and benefit from fundamental,
environmentally friendly trends in the increasingly competitive areas of electrification, renewableenergies and e-mobility. These megatrends will remain dominant in the future. In addition to our usualhigh level of investment in R&D, we further expanded our research and development capacities andopened two new R&D centers in Munich, Germany and Sofia, Bulgaria, and expanded the site inShanghai, China, to also host R&D activities. The pleasing result was reflected in the launch of 11 new
products from our expanded R&D pipeline."

LEM Holding SA

Page 1/8

Andrea Borla, Chief Financial Officer, commented, "The fourth quarter showed a significant decline
in order intake of 46.3%, in sales of 14.8% and an EBIT margin of 13.2%, which was negatively
impacted by 3-percentage-points due to severance costs. The measures introduced to increase ouragility and improve our cost positions were stepped up and have shown initial success but will only
take full effect over a longer period of time. However, the fundamental growth drivers remain intact."

Sales by businessin CHF millions

Business
Automation

Automotive

Renewable Energy
Energy Distribution& High Precision
Track
Total

Scope
drives, robots, toolingmachines, elevators,
HVAC
battery (EV & CE),
motor control, onboard
charging
solar, windcharging stations, smart
grid, energy storage,
high precision
trains, metro, trackside

2023/242022/23

Change

120.0

136.3

-11.9%

Changeat constantexchange
rates
-5.5%

98.6

100.7

-2.1%

+6.8%

70.8
60.9

67.0
59.4

+5.6%
+2.6%

+14.8%
+8.2%

55.5
405.8

43.0
406.4

+29.1%-0.1%+35.4%+7.2%

Automation
The business largely developed in line with the global economic trend. The first half of the year was
relatively solid. Among other factors, the automation business benefited from the trend towards
sustainable and customer-oriented solutions in manufacturing, particularly in EMEA. In the second halfof the year, the automation business slowed down in more difficult economic conditions as well as due
to high inventories. In China, sales weakened slightly due to declining exports.
Automotive
Sales in the Automotive business showed moderate growth year-on-year with weaker momentum inthe second half of the year. Growth was driven by good sales in EMEA and South Korea. In contrast,
sales in China, the single most important market, declined against the backdrop of an increasinglycompetitive environment. However, the cost initiatives introduced, and the enhanced customer focus
began to show the desired improvements.
Renewable Energy
Renewable Energy recorded a good overall business performance, albeit with regional variations. The
business saw strong demand from EMEA, Americas, Japan and India in the first half of the financial
year. This compensated for declining business in China, where exports of solar energy generationequipment have slowed down, and destocking was taking place at Chinese manufacturers and theirdistributors. Starting from this good level in EMEA, Americas, Japan and India, there was a slowdown
from the third quarter onwards. Demand in domestic installations declined seasonally, while customers
in Europe also had high stock levels. Price pressure was noticeable in both China and Europe.

LEM Holding SA

Page 2/8

Energy Distribution & High Precision
Energy Distribution & High Precision achieved steady growth in an increasingly competitiveenvironment that also affected OEMs. The DC meter for charging stations continued to sell very well,although growth slowed significantly in the second half of the year. Products for smart grid developed
solidly due to the favorable growth rates in these markets, although customers were rather reluctant toinvest at the end of the financial year. The testing and measurement business for laboratory equipment
performed well in the first half of the year due to good demand from the e-mobility sector, whichinvested in the development of batteries. The second half of the year was weaker, which is in line withthe general slowdown in e-mobility. In medical technology, the first half of the year was also good,followed by a slowdown in the second half of the year.
Track
Starting from a weak prior-year base, the Track business achieved a jump in sales. Momentum was
exceptionally high in the first half of the financial year, settling into solid growth in the second half. The
renewal of energy meters for locomotives in various EU countries generated additional demand in
EMEA. Track also recorded robust growth in China, supported by a positive market environment.

Sales by region
in CHF millions

RegionChina
Rest of Asia

EMEA
Americas2023/242022/23

Change

119.7
82.3

157.9
71.0

-24.2%+15.9%

Changeat constantexchangerates-15.3%+26.0%

156.5

127.7

+22.6%+26.7%

47.3

49.8

-5.0%

+1.9%

405.8

406.4

-0.1%

+7.2%

Scope
Japan, South
Korea, India, SouthEast Asia
Europe, Middle
East & Africa
NAFTA & Latin
America

Total

China
LEM was confronted with a difficult environment on the Chinese market, which was also reflected in asignificant decline in sales. This was due to slow economic growth, declining exports of solar inverters,
lower sales of products for e-mobility and significantly negative currency effects. LEM also saw somemarket share loss in the highly competitive e-mobility and renewable energy sectors. Increased speed
and competitive pressure are the biggest challenges in China. In this environment, LEM implemented
measures to become more agile, focusing on greater customer proximity, increased local R&D andstrengthened regional decision-making.
Rest of Asia
The other Asian markets, particularly Korea and Japan, recorded a broad-based upturn and solid
business, partially offsetting the decline in China. In sensors for electric and hybrid vehicles, LEM
achieved strong growth in South Korea and to a lesser extent in Japan. Automation and renewableenergy solutions were also performing well in Japan. In India, there was good demand from theinfrastructure sector for track and energy distribution solutions, as well as for solar and wind power
generation products. LEM's customers today are having increased focus on the resilience of their
suppliers and are looking for dual sourcing options. To meet these needs, LEM has expanded its
manufacturing capabilities with a new production facility in Penang, Malaysia. The new production site

LEM Holding SA

Page 3/8

enables LEM to supply the Asian markets as well as the USA and Europe from Asia. The site is also
well positioned in proximity to major semiconductor manufacturers.
EMEA
Business in EMEA went extremely well, driven by strong demand in all business areas and anormalization of supply chains. LEM was able to reduce order backlogs in the first half of the year,
after which the market weakened noticeably. DC Meters saw a jump in sales due to extensive
investments in the expansion of charging infrastructure. Automotive, Renewable Energy and Trackalso performed well.
Americas
The Americas region delivered a decent performance in the face of overall subdued investment activity
from the second quarter onwards and a negative currency impact. One focus in the reporting period
was on expanding the sales and field service team to broaden the customer base and accelerate
growth, particularly in e-mobility.
Profitability maintained at a high level
Gross profit for the financial year 2023/24 decreased by 1.6% to CHF 189.2 million (CHF 192.2 million).
The gross profit margin decreased slightly from 47.3% to 46.6% and was in line with the long-term
average. The gross margin was impacted by higher costs for electronic components, provisions forslow moving stocks and positively influenced by the improved business mix.
SG&A costs were 9.3% higher at CHF 74.4 million (CHF 68.1 million) due to LEM's investments indigitalization projects, such as the first successful launches of the new ERP system, and build-up costs
for the new production facility in Malaysia. In addition, severance costs resulted from the layoff of 40
employees. Overall, SG&A costs as a percentage of sales increased to 18.3% (16.8%). LEM continued
its investments in future applications and opened two new R&D centers in Germany and Bulgaria,
expanded the R&D site in China and increased the headcount overall by 30 engineers. This build-up
is reflected in the increase in R&D costs by 5.3% to CHF 33.9 million or 8.3% of sales (CHF 32.2
million; 7.9%).
The EBIT declined by 12.1%, from CHF 92.2 million to CHF 81.1 million. The EBIT margin was downfrom 22.7% to 20.0% due to the increased SG&A and R&D expenses.
Financial expenses increased from CHF 1.3 million to CHF 2.8 million due to an increase in interest
rates and higher average debt. Exchange rate effects due to the Swiss franc appreciation had anegative impact of CHF 3.3 million (CHF 1.9 million).
The effective tax rate was 12.9% due to the increase in deferred tax assets as a result of the increasein the Canton of Geneva tax rate from 1 January 2024 and the sale of an IP in China. Without these
one-off effects, the tax rate would have been at 15.5%.
Net profit decreased from CHF 75.3 million to CHF 65.3 million, mainly due to the lower operating
result, while lower taxes had a slightly supportive effect. As a result, the net profit margin decreased
to 16.1% (18.5%).
The Board of Directors will propose to the Annual General Meeting on June 27, 2024 that a dividendof CHF 50 per share be distributed for the 2023/24 financial year.

LEM Holding SA

Page 4/8

Dr. Libo Zhang to be elected as new member of the Board of Directors
Furthermore, the Board of Directors will propose to the Annual General Meeting the election of Dr.
Libo Zhang as member of the Board of Directors. Dr. Libo Zhang is an independent Board
Professional and Corporate Finance Advisor. Among other mandates, she is a member of the Boardof Directors 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 tooling machine industry. She has many years of experience in management
positions in the areas of finance, controlling and commercial processes in international industrial
companies. Ms. Zhang is German citizen and holds a PhD in Economics and an MBA from Georg August University in Göttingen, Germany. The Board of Directors is convinced that with her
background, know-how and experience Ms. Zhang will be a very valuable contributor to the future of
LEM.
Sustainability strategy driven forward
Over the financial year 2023/24, LEM is proud to report a strong improvement on Sustainability tocontinue helping customers and society accelerate the transition to a sustainable future. Solidfoundations have been grounded to build up the LEM sustainability strategy. On the governanceside, a dedicated team has been created with clear roles, responsibilities, and accountabilities
throughout the organization. The ESG topics on which LEM will focus have been identified and KPIs
for measuring target achievement have been defined. Furthermore, concrete actions were
implemented to improve LEM’s ESG posture and reduce its carbon footprint such as management
remuneration linked to Scope 1 and 2 emission reduction. Detailed information can be found in thestandalone Sustainability Report published for the first time.
Outlook
LEM expects market development to be moderate in the current financial year. The main reason forsome headwind is that it will still take 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.

Investor, analyst and media conference
Andreas Hürlimann, Chairman of the Board of Directors, Frank Rehfeld, CEO, and Andrea Borla, CFO,
will explain the 2023/24 full-year results and provide an outlook for the current financial year today at
10:30 am CET at a conference for investors, analysts and media at the Widder Hotel in Zurich.

Conference call and audio webcast
The conference for investors, analysts and the media will be broadcast via conference call and audio
webcast.
To participate in the conference call, please register via this link. You will then receive a confirmatione-mail with individual dial-in data. As a participant in the conference call, you can follow thepresentation here.
To access the audio webcast, please use this link. Questions can be asked via the chat function. A
recording of the webcast will be available 2 hours after the call from LEM’s website or using the samelink.

LEM Holding SA

Page 5/8

Download link
The ad hoc announcement, Annual Report and presentation are available in the Investor Relations
section of the LEM website (www.lem.com/en/investors), where the webcast recording will later also
be archived.

Financial calendar
The financial year runs from 1 April to 31 March
27 June 2024
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
26 June 2025
Annual General Meeting for the financial year 2024/25
1 July 2025
Dividend ex-date
3 July 2025
Dividend payment date
LEM – Life Energy Motion
A leading company in electrical measurement, LEM engineers the best solutions for energy andmobility, ensuring that our customers’ systems are optimized, reliable and safe.
Our 1’800 people in 17 countries transform technology potential into powerful answers. We develop
and recruit the best global talent, working at the forefront of megatrends such as renewable energy,
mobility, automation and digitization. With innovative electrical solutions, we are helping our customers
and society accelerate the transition to a more sustainable future.
Listed on the SIX Swiss Exchange since 1986, the company’s ticker symbol is LEHN.
www.lem.com
Investor contact
Andrea Borla, Chief Finance Officer+41 22 706 1250
investor@lem.com

LEM Holding SA

Media contact
Dynamics Group
Thomas Balmer, +41 79 703 87 28, tba@dynamicsgroup.ch
Christian Wolf, +41 79 457 72 05, cwo@dynamicsgroup.ch

Page 6/8

Appendix
Consolidated income statement
April to March
In CHF thousands

2023/242022/23

ChangeSales

405’777406’350-0.1%

Cost of goods sold(216’614)(214’156)

Gross profit

189’163

192’194

46.6%

47.3%

Sales expenses(29’513)(29’124)

Administration expenses(44’881)(38’950)

Research & development expenses(33’866)(32’174)153

234

Operating profit

81’05892’180Operating profit margin (in %)

20.0%

22.7%

Financial expenses(3’181)(1’719)422

392(3’326)(1’928)Gross profit margin (in %)Other income

Financial income
Foreign currency exchange effectProfit before tax

74’972

88’925

Income taxes(9’645)(13’585)

Net profit

65’32775’340Net profit margin (in %)

16.1%

18.5%

LEM Holding SA-1.6%-12.1%-15.7%-13.3%

Page 7/8

Key Figures
2023/24in CHF millions

2022/23

ChangeQ4 - Q4 FY - FY

Orders received

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Total LEM

81.0

60.5

46.4

55.3

243.3

158.1

112.0

92.1

103.0

465.2

-46.3%-47.7%

Book-to-bill ratio

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Q4 - Q4 FY - FY

Total LEM

0.72

0.55

0.50

0.62

0.60

1.74

1.04

0.89

0.98

1.14

-36.9%

Q4 - Q4 FY - FY

-47.6%

Sales

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Automation

34.3

32.6

27.5

25.6

120.0

30.5

36.9

34.4

34.5

136.3

-25.6%

Automotive

27.4

26.0

23.7

21.5

98.6

21.8

28.4

25.2

25.4

100.7

-15.3%-2.1%

Renewable Energy

21.0

19.8

16.4

13.5

70.8

15.4

18.0

16.8

16.7

67.0

-19.3%+5.6%

Energy Distribution & High Precision

15.6

17.0

12.5

15.8

60.9

13.8

14.1

14.9

16.6

59.4

-4.2%

+2.6%

Track

14.2

15.6

13.2

12.7

55.5

9.3

10.0

12.2

11.6

43.0

+9.0%

+29.1%

Total LEM

112.3

111.0

93.3

89.2

405.8

90.7

107.3

103.5

104.7

406.4

-14.9%-0.1%-11.9%

EBIT

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Q4 - Q4 FY - FY

Total LEM

26.2

25.5

17.6

11.8

81.1

19.5

26.3

22.6

23.8

92.2

-50.6%-12.1%Net profit

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Q4 - Q4 FY - FY

Total LEM

20.5

22.9

12.0

9.9

65.3

14.7

20.5

20.1

20.1

75.3

-50.7%LEM Holding SA-13.3%

Page 8/8