Financial Half Year Report22 | 23

Contents

		 LEM GroupInterim consolidated statementof financial position

AssetsNotes

in CHF thousands

3		Interim consolidated statementof financial position

30.9.2022

31.3.2022

17’198Current assets
Cash and cash equivalents

23’334

Accounts receivable

85’452

80’096Inventories

47’95646’140

3’915

3’470

Income tax receivable

4Interim consolidated income statement

Other current assets

5		Interim consolidated statementof comprehensive income

Noncurrent assets

6		Interim consolidated statementof changes in equity

Deferred tax assets

7Interim consolidated cash flow statement

8		Notes to the interim consolidated
financial statements

12

5’694

6’582

Total current assets

166’352

153’486

Property, plant and equipment

64’62860’574Right-of-use assets

25’70628’436

Intangible assets
12

4’741

4’072

50’74054’102Other noncurrent assets

700

728

Total noncurrent assets

146’515147’911

Total assets

312’867

301’397

30.9.2022

31.3.2022

Accounts payable

30’712

26’677

Accrued expenses

26’77930’423

Lease liabilities

2’203

1’646
3’793

Liabilities and equity
Notes

in CHF thousands

Current liabilities

Income tax payable

12

3’068

Current provisions

6

512

94

Interest-bearing loans and borrowings

7

77’00040’650

Other current liabilities

2’050

1’267

Total current liabilities

142’324

104’549

27’10028’375

Noncurrent liabilities
Noncurrent lease liabilities
Noncurrent provisions

6

767

856

Deferred tax liabilities

12

3’328

3’469

Interest-bearing loans and borrowings

7

2’216

Other noncurrent liabilities

8

1’467

2’952

Total noncurrent liabilities

34’87835’651

Total liabilities

177’202

140’200

EquityShare capital

570

570

(1’277)(977)

Treasury shares

9

Reserves

9

6’696

9’701

Retained earnings

9

129’675

151’904

Total equity

135’665

161’197

Total liabilities and equity

312’867

301’397

LEM Financial Half Year Report 22 | 23

Page 3

Interim consolidated
income statement

Interim consolidated statementof comprehensive income

April to September
Notes

2022/23

April to September
2021/22in CHF thousands

Notes

Sales

Net profit for the period recognized in the income statement

198’066

183’665(104’240)(98’066)

Gross margin

93’82685’600

Sales expenses(13’675)(14’109)

Administration expenses(17’709)(14’251)

Research & development expenses(16’711)(15’216)2290

45’75242’114

Financial expenses

(717)

(226)

Financial income

165

177

Foreign currency exchange effect(2’464)(329)

Profit before taxes

42’73641’736

Total other comprehensive income not to be reclassified to profit and loss
in subsequent periods(7’526)(6’551)35’21035’185

Cost of goods sold

Other income
Operating profit

10

Income taxes

12

Net profit

2021/2235’21035’185

Other comprehensive income to be reclassified to profit and loss insubsequent periods
Currency translation difference(3’749)

795

446

(53)

(3’303)

742

(171)

3’905

(171)

3’387

Other comprehensive income/(loss) for the period, net of tax(3’475)

4’129

Total comprehensive income for the period

31’73539’314

Income tax
Total other comprehensive income to be reclassified to profit and loss insubsequent periods
Other comprehensive income not to be reclassified to profit and loss
in subsequent periods
Remeasurement gains/(losses) on defined benefit plans

Basic earnings per share

30.90

30.87

Diluted earnings per share

30.88

30.87

(518)

The accompanying notes are integral part of the interim consolidated financial statements.

Page 4

8

Income tax

Earnings per share, in CHF

LEM Financial Half Year Report 22 | 23

2022/23in CHF thousands

LEM Financial Half Year Report 22 | 23

Page 5

Interim consolidated statementof changes in equity

Interim consolidated
cash flow statement

Attributable to shareholders
Notes
in CHF thousands

1 April 2021

Sharecapital570

Treasuryshares(1’156)

Capitalreserve
13’099Translation
reserve(3’917)

Net profit for the period

Retainedearnings
123’304

131’899

35’18535’185

Other comprehensive income/(loss)

742

3’387

4’129

Total comprehensive income

742

38’57239’314(47’858)(47’858)

Dividends paid

9

Movement in treasury shares

9

(160)

160

(57)

(57)

30 September 2021

570

(1’316)

13’259(3’175)113’961123’298

1 April 2022

570

(977)

12’920(3’219)151’904

161’197

Net profit for the period

35’21035’210

Other comprehensive income/(loss)(3’303)(171)(3’475)

Total comprehensive income(3’303)35’03931’735

Share-based payments

11

224

224

Dividends paid

9

(56’958)(56’958)

Movement in treasury shares

9

(533)

(533)

129’675

135’665

30 September 2022

570

(299)

299

(1’277)

13’219(6’523)

April to September

Total
equityNotes

2022/232021/22

Profit before taxes

42’73641’736

Adjustment for noncash items

8’721

8’127

(4’983)(30’035)

in CHF thousands

CASH FLOW FROM OPERATING ACTIVITIESInterest received/paid and taxes paid
Cash flow before changes in net working capital

46’47419’828Cash flow from changes in net working capital(9’671)(7’976)

Cash flow from operating activities

36’803

11’853

CASH FLOW FROM INVESTING ACTIVITIESInvestment in fixed assets(10’587)(6’783)

Investment in intangible assets

(3)

(76)

Increase in other assets

(95)

(53)

Decrease in other assets

74

131

(10’611)(6’781)(7’215)

Cash flow from investing activities
CASH FLOW FROM FINANCING ACTIVITIESTreasury shares acquired

9(4’457)

Treasury shares divested

9

3’923

7’158

(917)

(1’165)(47’858)

Payment of lease liabilities
Dividends paid to the shareholders of LEM HOLDING SA

9(56’958)

Increase in financial liabilities7

94’15067’200Decrease in financial liabilities7(55’500)(19’100)(19’759)(980)

Change in cash and cash equivalents

6’433

4’092

Cash and cash equivalents at the beginning of the period

17’19822’418Cash flow from financing activities

Exchange effect on cash and cash equivalents
Cash and cash equivalents at the end of the period

LEM Financial Half Year Report 22 | 23

Page 6LEM Financial Half Year Report 22 | 23

Page 7(296)

238

23’33426’748

Notes to the interim
consolidated financial
statements

Notes to the interim consolidated
financial statements

1.
General information
LEM Group (the Group) is a leading company in electrical measurement. LEM engineers best-in-class solutions for energy andmobility, ensuring that its customers’ systems are optimized, reliable and safe.
The parent company of LEM Group is LEM HOLDING SA (the Company), which is a limited company incorporated in Switzerland.
Since 30 June 2022 LEM HOLDING SA is registered at Route du Nant-d'Avril 152, 1217 Meyrin.
2.
Significant accounting principles
These unaudited consolidated financial statements for the six months ended on 30 September 2022 have been prepared inaccordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”. They do not include all the information and disclosures presented in the annual consolidated financial statements and should therefore be read in conjunction
with those for the year ended 31 March 2022.
The accounting and valuation policies are consistent with those applied in preparing the annual consolidated financial statements for the year 2021/22.
The preparation of the interim consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and related disclosuresat the date of the interim financial statements. These estimates are based on management’s best knowledge of current eventsand actions that the Group may undertake in the future. However, actual results could differ from those estimates.
The financial information is presented in thousands of CHF. The totals are calculated with the original unit amounts, which could
lead to rounding differences. These differences in thousands of units are not changed in order to keep the accuracy of theoriginal data.
Amendments in IFRS, effective as of January 2022, did not have a material impact on the interim consolidated financial statements. The Group has not early adopted any standard or amendment that has been issued but is not yet effective.
3.
Exchange rates
The exchange rates for the most significant currencies are as follows:
Income statement of2022/23
Currency

Income statement of
2021/22

Balance sheet
30.9.2022

Balance sheet
31.3.2022

4.
Segment information
As of 1 April 2022, LEM Group decided to modify its organizational structure and to manage its business primarily on a geographic basis and therefore dissolved the two operating segments, Industry and Automotive.
For management purposes, LEM Group is now organized into two reportable segments, as follows:– Region of Asia which includes China, Japan, South-Korea, India, South-East Asia;– Region of Europe/Americas which includes Europe, Middle East, Africa, NAFTA and Latin America.
Although the reportable segments provide similar electronics components called transducers for applications in different customer sectors, each region is managed separately to better align with the location of the Group’s customers and distribution
partners and the unique market dynamics of each geographic region.
The Group evaluates the performance of its reportable segments based on net sales and operating profit. Net sales for geographic segments are based on the location of customers. Operating profit for each segment includes net sales to third parties,
related cost of sales and operating expenses directly attributable to the segment.
Operating profit for each segment excludes centralized headquarter support functions as well as certain research and development costs managed outside of the reportable segments.
The segment information is presented net of inter-segment transactions.
The Group does not include intercompany transfers between segments for management reporting purposes. The reporting
segments are presented in a manner consistent with the internal reporting.
LEM Group has restated the sales and corresponding items of segment information for earlier periods.
As of 30 September 2022, LEM Group has not disclosed comparable segment information of the previous period’s operating
profit due to unavailable information to date, resulting from significant change of cost centers and allocations between segments and costs managed outside of the reportable segments.
Also, it was not possible to disclose the current period based on the old basis of segmentation as the necessary information
is not available and not comparable.
Business segment information
Asia
in CHF thousands

2022/232021/22103’989

Europe/Americas

Total

2022/232021/222022/232021/2282’041

79’676198’066

183’665

Average rate in CHF

Average rate in CHF

Half-year rate in CHF

Year-end rate in CHF

BGN

0.511

0.557

0.491

0.525

Sales

116’025

CNY

0.144

0.141

0.138

0.146

Operating profit

47’154

DKK

0.134

0.147

0.129

0.138

Other operating costs 1(25’388)

EUR

1.000

1.090

0.961

1.026

Group operating profit

45’752

GBP

1.174

1.270

1.092

1.213

JPY

0.00720.00830.00680.0076

MYR

0.219

0.220

0.211

0.219

RUB

0.015

0.012

0.017

0.011

USD

0.965

0.914

0.980

0.923

LEM Financial Half Year Report 22 | 23

Page 823’985

1 Those costs are managed outside of the reporting segments and are linked to centralized headquarter support functions

as well as certain research and development costs.

LEM Financial Half Year Report 22 | 23

Page 971’14042’114

Notes to the interim consolidated
financial statements

Notes to the interim consolidated
financial statements

5.

6.
Current and noncurrent provisions
Warranty and customer claims
Provisions for warranty and customer claims have been estimated based on past experience and the risk assessment ofmanagement. The warranty provision is expected to be used over the next five years.
At 30 September 2022, the provisions increased by CHF 0.3m.

Revenue information

Geographical information
China
in CHF thousands

USA

Japan

2022/232021/222022/232021/222022/232021/222022/232021/2282’06270’747

20’77615’82419’38018’071

14’18914’2822022/232021/222022/232021/222022/232021/222022/232021/22

11’190

9’693

6’009

7’151

44’45947’897198’066

183’665

Sales

Korea
in CHF thousands

Germany

Sales

Italy

Regional information
2022/23in CHF thousands

2021/22

Sales
China

82’06270’747

Rest of Asia

33’96433’242

Total region Asia

116’025

103’989

Europe58’406

61’495

Americas23’63418’181

Total region Europe/Americas

82’041

79’676

LEM Group

198’066

183’665

Other countries

LEM Group

Litigation and consumption taxes
Despite the care that LEM applies in the separation process with personnel, such separation may result in legal conflicts. The
Group will defend its case and management estimates the reasonable risk to be adequately provided for.
The Group operates in multiple jurisdictions with complex legal and tax regulatory environments. In the frame of the continuous
improvement of its processes and systems, LEM has reviewed the consumption taxes in several countries. It has appeared thatsome of LEM’s subsidiaries may not have been fully compliant with their local consumption tax regulations. As a consequence,
LEM has estimated consumption tax provisions according to management’s best judgment. Some of these positions are inherently uncertain and include the interpretation of local regulations applied to complex transactions.
7.
Financial liabilities
LEM Group increased its financial short-term liabilities to CHF 77.0 million (CHF 40.7 million at 31 March 2022) through shortterm credit lines in order to finance the CHF 57.0 million dividend payment of July 2022.
LEM Group increased its financial long-term liabilities to CHF 2.3 million to finance its future Malaysian plant.
8.
Other noncurrent liabilities
As of 30 September 2022, the retirement benefit obligation remains in surplus amounting to CHF 5.0 million (CHF 3.8 million
at 31 March 2022). Consistent with year-end, the surplus has been restricted to nil as the economic benefit in the form ofa reduction in future contributions cannot be realized.
9.
EquityAt the shareholders’ meeting held in Geneva on 30 June 2022, the shareholders approved the distribution of an ordinary dividend of CHF 50.00 per share. The gross dividend effectively paid on 7 July 2022 amounted to CHF 57.0 million (prior year:
ordinary dividend of CHF 42.00; total CHF 47.9 million).
In the frame of its market-making contract, LEM holds its own shares. Per 30 September 2022, the Group held 778 shares(31 March 2022: 449).
10. Operating profit
Our sales increased by +7.8% to CHF 198.1 million in the first half of 2022/23; at constant exchange rates, this represents
a sales increase of +9.5%.
Our gross margin stood at 47.4%, slightly up from 46.6% in the first half of 2022/23, with an EBIT amounting to CHF 45.8 million(increase of +8.6% in the first half of 2022/23). Our operating profit margin for the first six months of 2022/23 was 23.1%,
compared with 22.9% a year earlier.

LEM Financial Half Year Report 22 | 23

Page 10LEM Financial Half Year Report 22 | 23

Page 11

Notes to the interim consolidated
financial statements

Notes to the interim consolidated
financial statements

11. Share-based payments
As of 2022/23, the Board of Directors of LEM HOLDING SA decided to replace the current cash-based long-term incentive planfor LEM’s Executive Management by a share-based Performance Share Unit (“PSU”) plan.
The number of shares obtained per PSU can thereby vary between 0% and 200% of the award, subject to continuous employment and depending on the achievement of pre-agreed performance conditions.

13. Financial assets and liabilities
Financial assets

The performance conditions include non-market and market conditions such as economic value added (“EVA”), absolute total
shareholder return (“absolute TSR”), and total shareholder return measured relative to the SPI EXTRA® Total Return Index (“relative TSR”). The grant-date fair value estimate of market conditions are based on a Monte Carlo simulation. The performance
conditions are measured over the period of three consecutive financial years starting with the financial year during which theaward date occurs relevant for measuring the long-term performance.

30.9.2022
Book value

31.3.2022
Book value

Amortized
cost

Cash and cash equivalents

23’33417’198X

Accounts receivable

85’452

80’096X

Derivative financial instruments – current

32

32

Other current financial assets

16

90

X

700

728

X

109’534

98’14430.9.2022
Book value

31.3.2022
Book value

Other financial liabilities

Accounts payable

30’712

26’677X

Accrued expenses

26’77930’423X

3

877’00040’650in CHF thousands

At fair value
through profit andloss

X

Derivative financial instruments – noncurrent

X

Other noncurrent financial assets
Total

The Group accounts for the PSU as an equity-settled plan.
Financial liabilities
These allotments are recognized as an expense representing the fair value of the services rendered by the beneficiaries. The
fair value of the services is determined by reference to the fair value of the shares on the grant date. The performance conditions are taken into account when estimating the number of shares to be granted at the end of the vesting period. The benefits
granted constitute expenses and are recognized on a straight-line basis over the vesting period in the income statement together with a corresponding increase in the consolidated reserves.

in CHF thousands

Derivative financial instruments – current

The first plan has been granted as of 20 July 2022. The vesting date will occur at the third anniversary of the grant date. As of
30 September 2022, the amount accrued amounts to CHF 0.2 million.
12. Income taxes
Income tax expense is calculated based on the best estimate of the applicable annual income tax rate expected for the full year.
The Group operates in multiple jurisdictions with complex legal and tax regulatory environments. In certain of these jurisdictions, the Group has taken income tax positions that management believes are supportable and are intended to withstandchallenge by tax authorities. Some of these positions are inherently uncertain and include those relating to transfer pricing
matters and the interpretation of income tax laws applied to complex transactions. The Company periodically reassesses its tax
positions. Changes to the financial statement recognition, measurement, and disclosure of tax positions are based on management’s best judgment given any changes in the facts, circumstances, information available and applicable tax laws. Considering
all available information and the history of resolving income tax uncertainties, the Group believes that the ultimate resolution ofsuch matters will not have a material effect on its financial statements.
Differences between the final tax outcome and the amounts that were initially recorded impact the income and deferred taxes
in the period in which such determinations are made. The Group calculates its expected average tax rate as a weighted averageof the tax rates in the tax jurisdictions in which the Group operates.
At 17.6%, the average tax rate increased compared to 15.7% for the first half-year 2021/22.

LEM Financial Half Year Report 22 | 23

Page 12

Other current financial liabilities
Other noncurrent financial liabilities

X
X

2’216

Total

At fair value
through profit andloss

X

136’710

97’758Changes in liabilities arising from financing activities

1.4.2021

in CHF thousands

Cash flows
InflowCash
impactNon-cash
impactCash flows(Outflow)

Fair valuechanges andOthers

30.9.2021

Interest-bearing loans and borrowings

24’00067’200(19’100)

72’100Total

24’00067’200(19’100)

72’1001.4.2022

in CHF thousands

Cash flows
InflowCash
impactNon-cash
impactCash flows(Outflow)

Fair valuechanges andOthers

30.9.2022

Interest-bearing loans and borrowings

40’65094’150(55’500)(84)

79’216

Total

40’65094’150(55’500)(84)

79’216LEM Financial Half Year Report 22 | 23

Page 13

Notes to the interim consolidated
financial statements

Notes to the interim consolidated
financial statements

The management assessed that fair value level of cash and cash equivalents, accounts receivables, other current and noncurrent assets, accounts payables, accrued expenses and other current and noncurrent liabilities that are not measured at fair value, are approximate to their carrying amounts in view of their short-term nature and are consequently not separately disclosed.

Financial calendar
The financial year runs from 1 April to 31 MarchThe Group enters into derivative transactions such as currency risk reversal and forward contracts to hedge the USD, EUR risks.
The purpose of these currency hedges is to manage the currency risks arising from the Group’s operations.
It is the Group’s policy that no derivatives for speculative purposes shall be entered into.
The main risks arising from the Group’s financial instruments are foreign currency risks and credit risks, whereas the others areof minor or no impact.
The Board of Directors reviews and agrees policies for managing each of those risks.

6 February 2023

9 months results 2022/23

25 May 2023

Full year results 2022/23

29 June 2023

Annual General Meeting of Shareholders for thefinancial year 2022/23

4 July 2023

Dividend ex-date

6 July 2023

Dividend payment date

The Group’s net financial assets at fair value amount to CHF 29 thousand per 30 September 2022 (net financial assets of
CHF 24 thousand per 31 March 2022), all classified under level 2.
During the last reporting period, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers
into and out of Level 3 fair value measurements.
14. Changes in scope of consolidation
On 31 August 2022, LEM Advisory Services SA is in liquidation.
15. Events after the balance sheet date
The Board of Directors and Senior Management are not aware of any significant events up to the date of approval of the interim
consolidated financial statements on 2 November 2022 that would require an adjustment in carrying amounts of the Group’s
assets and liabilities.

LEM Financial Half Year Report 22 | 23

Page 14LEM Financial Half Year Report 22 | 23

Page 15

ContactAndrea Borla, Chief Financial Officer
Phone: +41 22 706 12 50
E-mail: investor@lem.com
Address
LEM HOLDING SA
Route du Nant-d’Avril 1521217 Meyrin
Geneva, Switzerland
www.lem.com

LEM HOLDING SA
Route du Nant-d’Avril 1521217 Meyrin
Geneva, Switzerland
www.lem.com

Financial Half Year Report 22 | 23