Ad hoc announcement pursuant to Art. 53 LR

LEM with good sales growth for 9 months 2023/24 overall –slowdown in the third quarter
Geneva, 2 February 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 the first 9months of 2023/24 (April-December):•Sales climbed 5.0% to CHF 316.6 million (9 months 2022/23: CHF 301.6 million); at constant exchange
rates, the increase was 12.9%.

•LEM achieved the strongest growth in the EMEA region with 31.4%; Rest of Asia reached 22.8% andAmericas was stable with -0.8%. China was down 20.5% year-on-year due to the economic slowdown
and destocking; at constant exchange rates, the decline was 10.6%.

•Starting from the previous year's peak, bookings further normalized to CHF 188.0 million (CHF 362.2million); the book-to-bill ratio was 0.59.

•EBIT increased by 1.4% to CHF 69.3 million (CHF 68.3 million); the EBIT margin was maintained at ahigh 21.9%. Net profit climbed to CHF 55.4 million, resulting in a net profit margin of 17.5% (CHF 55.3million; 18.3%).

•Following the good first 9 months of the year, LEM is maintaining its cautious view for the fourth quarter.
The guidance for the full financial year 2023/24 has been reduced to sales in the range of CHF 400 to420 million (previously: CHF 420 to 440 million) and an EBIT margin slightly above 20%.

Frank Rehfeld, Chief Executive Officer, said: "LEM achieved satisfying business performance over thefirst 9 months 2023/24. We were able to develop our businesses and benefit from fundamental,
environmentally friendly developments in electrification, renewable energies and e-mobility. These
megatrends will remain dominant in the future. LEM continues to drive innovation to expand its
technological leadership. During a period marked by economic uncertainty, the significance of LEM'stechnology platform, wide range of applications, and comprehensive product portfolio, coupled with its
global presence in research and development, production, and sales, has been reaffirmed.”
Andrea Borla, Chief Financial Officer, commented, "The third quarter, with a decrease in sales of 9.9%
and an EBIT margin of 18.9%, is below expectations. Following a normalization of demand in the first halfof the year, sentiment deteriorated in the third quarter, with the consequence that LEM recorded a further
decline in the order intake. The measures introduced have shown initial success, but will only have theirfull effect over a longer period of time. However, the fundamental growth drivers remain intact."

LEM Holding SAPage 1/7

Sales by businessin CHF millions
Business
Automation

AutomotiveRenewable Energy
Energy Distribution& High Precision
TrackTotal

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

2023/24
9M

2022/23
9M

Change

94.4

101.8

-7.3%

77.1

75.3

+2.3%

57.2
45.1

50.3
42.8

+13.9%
+5.3%

42.9
316.6

31.4
301.6

+36.6%+5.0%

Automation
The automation business was slowed down by more challenging economic conditions and a temporary
reduction in stock levels. Considering the negative exchange rate effects, sales were nevertheless kept
almost stable. The underlying industrial trends relevant to LEM continue.
Automotive
Automotive growth was driven by strong sales in EMEA and South Korea. In both regions, LEM saw strong
demand for products for battery management systems, engine control and onboard chargers. In China,
the most important market, sales were down on the same period of the previous year. However, the pricing
initiatives introduced and the enhanced customer focus began to show the first signs of success.
Renewable Energy
LEM saw good demand from EMEA, Americas, Japan and India, with a seasonal slowdown at a high levelin the third quarter. This compensated for declining business in China, where exports of solar energy
generation equipment have declined, and destocking is currently taking place at Chinese manufacturers
and their distributors. However, domestic demand in China remained dynamic and the fundamental growthtrend for renewable energies is continuing.
Energy Distribution & High Precision
Energy Distribution & High Precision reported robust growth. The DC meter for EV charging stations wasa strong driver, and the attractiveness of the market was also reflected in the entry of new providers ofmetering systems, charging infrastructure and services. Based on the strong position in EMEA, LEM is
now extending it focus on the emerging American market for EV charging stations. Products for highprecision equipment and smart grid performed well based on the favorable growth rates of these markets.
Track
Starting from a weak base in the previous year, the Rail division achieved a significant increase in sales.
The business, which is characterized by long investment cycles, has thus returned to its usual growth path,but was further supported by the periodic retrofit business for renewing energy meters for locomotives invarious EU countries. In China, Track benefited from a positive market environment.

LEM Holding SA

Page 2/7

Sales by region
in CHF millions
RegionChina
Rest of Asia
EMEA
Americas2023/24
9M

2022/23
9M

Change

97.0
63.8

122.0
51.9

-20.5%+22.8%

119.3

90.8

+31.4%

36.6

36.9

-0.8%

316.6

301.6

+5.0%

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

Total

China
The environment in China was challenging in the first 9 months of 2023/24. This was due to slow economicgrowth, declining exports of solar systems, lower sales of products for e-mobility, price pressure, andsignificantly negative currency effects. LEM also saw some market share loss in the highly competitive emobility and renewable energy sectors. The company uses this phase of economic slowdown to takemeasures to participate in the next upturn.
Rest of Asia
In sensors for electric and hybrid vehicles, LEM achieved growth in South Korea and to a lesser extent inJapan. Growth in Automation solutions slowed in Japan due to weaker exports following the economic
downturn in China. In India, there was good demand from the infrastructure sector for track and energy
distribution solutions, as well as for solar and wind power generation products. The new production facility
in Penang, Malaysia has manufactured its first products and will continue to expand capacity in the future.
These capabilities will benefit both Europe and the Americas, and will also align with near-shoring trends
in the Rest of Asia region.
EMEA
Business in EMEA went well, driven by strong demand in all business areas and a normalization of supply
chains, but saw a considerable slowdown in the third quarter. The Automation and Renewable Energies
segments showed signs of normalization. DC Meters saw a jump in sales due to extensive investments inthe expansion of charging infrastructure. Automotive and Track also performed well.
Americas
The Americas region delivered a solid performance in the face of overall subdued investment activity anda 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 good level despite decline in EBIT margin in the third quarter
Gross profit for the first 9 months of 2023/24 increased by 4.2% to CHF 148.8 million (CHF 142.8 million).
The gross profit margin decreased slightly from 47.4% to 47.0%. While the gross margin was 46.1% in thefirst quarter due to higher costs for electronic components, it increased to 47.7% in the second quarter and47.3% in the third quarter thanks to an improved business mix.

LEM Holding SAPage 3/7

SG&A costs increased by 8.4% to CHF 54.1 million (CHF 49.9 million). This increase was due to LEM's
investments in digitalization projects and build-up costs for the new production facility in Malaysia. Overall,
SG&A costs as a percentage of sales remained constant at 17.1% (16.6%). LEM continued its investment
in future applications, reflected in the 2.9% increase in R&D costs to CHF 25.5 million or 8.0% of sales(CHF 24.8 million; 8.2%).
LEM increased EBIT by 1.4% from CHF 68.3 million to CHF 69.3 million. The EBIT margin went down in
the third quarter, but was maintained over the first 9 months of 2023/24 at a good level with 21.9% thanks
to the good result in the first half of the year.
The effective tax rate is 11.9% due to the increase in deferred tax assets as a result of the increase in
the Canton of Geneva tax rate from 1 January 2024. Without this one-off event, the tax rate would havebeen 15.0%.
Net profit rose only slightly from CHF 55.3 million to CHF 55.4 million, negatively impacted by theoperating result, higher interest costs and exchange rate effects. The lower tax rate had a positive effect .
As a result, the net profit margin decreased to 17.5% (18.3%).
OutlookAfter a good first 9 months of 2023/24, LEM is maintaining its cautious view for the fourth quarter. Following
a normalization of demand in the first half of the year, sentiment deteriorated in the third quarter, with theconsequence that LEM recorded a further decline in the order backlog.
As a result, the forecast for the full 2023/24 financial year has been reduced to sales in the range of CHF
400 to 420 million (previously: CHF 420 to 440 million) and an EBIT margin slightly above 20%.

Financial calendar
The financial year runs from 1 April to 31 March
28 May 2024
Full year results 2023/24
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
3 months results 2024/25

LEM Holding SAPage 4/7

LEM – Life Energy Motion
A leading company in electrical measurement, LEM engineers the best solutions for energy and mobility,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 andrecruit 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.comInvestor 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 5/7

Appendix
Consolidated income statement
April to December
In CHF thousands

2023/242022/23

ChangeSales

316’618

301’607+5.0%

Cost of goods sold(167’788)(158’781)

Gross profit

148’830

142’826

47.0%

47.4%

Sales expense(22’188)(21’214)Administration expense(31’934)(28’735)

Research & development expense(25’466)(24’753)

53226

EBIT

69’29568’350EBIT margin (in %)

21.9%

22.7%

Financial expense(2’330)(1’202)Financial income

331

285

Foreign exchange effect(4’410)(2’090)

Profit before taxes

62’88665’343

Income taxes(7’455)(10’064)

Net profit

55’43155’279Net profit margin (in %)

17.5%

18.3%

Gross profit margin (in %)Other income

LEM Holding SA

+4.2%

+1.4%

-3.8%

+0.3%

Page 6/7

Key Figures
2023/24in CHF millions

Orders received

Q1Q2

Q3

Total LEM

81.0

60.546.4

Book-to-bill ratio

Q1Q2Q3Total LEM

0.72

0.55

0.50

Q4Q4

FY

FY

2022/23

ChangeQ3 - Q3 9M - 9M

Q1Q2Q3Q4

FY

158.1

112.0

92.1

103.0

465.2

-49.5%-48.1%

Q1

Q2

Q3Q4

FY

Q3 - Q3 9M - 9M

1.74

1.04

0.89

0.98

1.14

-44.0%

Q3 - Q3 9M - 9M

-50.6%

Sales

Q1

Q2

Q3

Q1

Q2

Q3

Q4

FY

Automation

34.3

32.6

27.5

30.5

36.9

34.4

34.5

136.3

-20.1%-7.3%

Automotive

27.4

26.0

23.7

21.8

28.4

25.2

25.4

100.7-6.0%+2.3%

Renewable Energy

21.0

19.8

16.4

15.4

18.0

16.8

16.7

67.0

-2.5%

+13.9%

Energy Distribution & High Precision

15.6

17.0

12.5

13.8

14.1

14.9

16.6

59.4

-16.0%

+5.3%

Track

14.2

15.6

13.2

9.3

10.0

12.2

11.6

43.0

+8.1%

+36.6%

Total LEM

112.3

111.0

93.3

90.7

107.3

103.5

104.7

406.4

-9.9%

+5.0%

EBIT

Q1

Q2

Q3

Total LEM

26.2

25.5

17.6

Net profit

Q1

Q2

Q3

Total LEM

20.5

22.9

12.0

LEM Holding SA

Q4

Q4

Q4

FYFYFY

Q1Q2Q3Q4FY

Q3 - Q3 9M - 9M

19.5

26.3

22.6

23.8

92.2

-22.0%+1.4%

Q1

Q2Q3Q4FY

Q3 - Q3 9M - 9M

14.7

20.5

20.1

20.1

75.3

-40.0%+0.3%

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