Press release

LEM announces results for Q1 2021/22: performance driven bycontinued rebound in global economy
Geneva, Switzerland, 28 July 2021 – LEM (SIX: LEHN), a leading global company in electricalmeasurement for industry and automotive applications, announces first quarter results for 2021/22(April-June) compared to 2020/21:•

Sales increased by 25.5% to CHF 93.3 million (CHF 74.3 million); at constant exchange rates, sales
improved by 24.2%•The company benefits from a diverse global distribution of sales, with China and Europe further
increasing their share:– China CHF 36.2m (38.8% of total)– Europe CHF 29.5m (31.6% of total)– North America CHF 7.8m (8.3% of total)– Rest of World CHF 19.9m (21.3% of total)•

R&D up by 13.9% to CHF 7.6 million (CHF 6.7 million), but declined to 8.1% of sales•

EBIT improved by 59.6% to CHF 21.2 million (CHF 13.3 million); the EBIT margin increased to22.7% (17.9%)•Net profit for the period rose by 55.4% to CHF 17.3 million (CHF 11.1 million)

Frank Rehfeld, Chief Executive Officer, said: “We are very happy about the strong global reboundin our performance. This quarter’s growth in sales and orders compared with Q1 last year should,
however, be taken in the context of the severe impacts of the pandemic in 2020. If we compare Q1
with Q4, it is still encouraging to see sales growth of 12.7% as all geographic regions benefited from arebound in economic activity and a return of confidence. It is particularly pleasing to see the Industry
segment boosted by our Drives business, which is a strong indicator of demand and investment in
manufacturing capacity across multiple industrial and consumer sectors. Our Automotive segment
performance reflects the pace of electrification, particularly in Europe, as manufacturers produced
more electric vehicles to achieve their CO2 emissions targets.
Our global order book improved for the 4th consecutive quarter, reflecting fundamental demand,
lengthened lead times due to supply chain bottlenecks, and requests to customers to firmly commit toorders over longer time horizons. We continue to benefit from the diversity of our business acrosssectors and regions, with balancing investment cycles and customer demand, and exposure to bothmature industries and novel technologies.”
Andrea Borla, Chief Financial Officer, remarked: “The top-line sales performance this quarter fed
through to substantial gains in profitability across all metrics. We maintained good control over costs,
while continuing to increase R&D investments. However, caution must be exercised in extrapolating
this exceptional growth to future quarters. Many uncertainties remain about how new variants of Covid19 will impact society, and there are also strong headwinds caused by supply chain shortages andongoing trade disputes.”

LEM Holding SA

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Industry segment: strong performance across all regions, led by Drives
Q1 sales in the Industry segment totalled CHF 73.2 million, up 22.3%. At constant exchange rates,
sales improved by 20.8%. This strong performance across all geographic regions reflects the bounceback in the global economy as measures against the pandemic have become effective and confidence
has returned. In particular the improvement in our Drives business indicates demand and investment
in manufacturing capacity across multiple industrial and consumer sectors, whose investment cycles
are long and likely to endure for several quarters. Renewable Energy is a more variable business andquicker to turn, while it continues to grow due to increasing governmental policies for sustainableeconomies. Europe (+29.2%), China (+17.1%) and Rest of World (+26.2%) benefited from the jump indemand across Drives, Renewables and High Precision. However the decline in our Traction businessreflects how train operators in various countries have postponed their orders during the pandemic aspublic transport was much less used, and the investment cycles take longer to pick up. North America(+10.1%) benefited from the demand for Drives, but less from Renewables. Global orders more thandoubled for the quarter, as lead times lengthened due to supply chain bottlenecks and we requested
customers to firmly commit to orders over longer time horizons. The global lack of manufacturing
capacity is an indicator of future demand for our Drives products.
in CHF millions

2021/222020/21

ChangeCommentsBusinesses
Drives33.4

25.4+31.6%

Renewable
EnergyTraction
High precision

26.8

21.0

+27.5%

10.5
2.5

11.3
2.1-7.0%+16.8%• Growth in multiple industrial andconsumer sectors• Manufacturing capacity investment• China solar driven by infrastructure• Europe boosted by DC meter• Rail traffic impacted by Covid-19• Medical scanners in demand post
Covid

Total Industry

73.2

59.8

+22.3%

Automotive segment: strong fundamental EV growth impacted by supply chain issues
Q1 year sales in the Automotive segment totalled CHF 20.1 million, an increase of 38.7%. At constantexchange rates, sales improved by 38.5% compared to Q1 last year with the shutdowns during thefirst phase of the Covid-19 pandemic. With the acceleration of the deployment of EV platforms bycarmakers, our products have been designed in for several vehicles which entered production in 2020.
However, there are severe supply chain problems in semi-conductors and many other components
which are already impacting our Battery Management business and will also impact our portfolio going
forward. We can see this in the 12.4% decline of sales in Q1 vs Q4 last year. However, our order booknearly tripled compared with Q1 2020, reflecting the strong fundamental demand for EV solutions, plus
we have asked customers for firm commitments over longer time horizons in light of supply chain
issues.
Our largest market China grew impressively by 84.5%, driven by consumer appetite for EVs and thelaunch of several new vehicles. The pace of electrifications continues to grow in Europe (+63.9%), asmanufacturers (OEMs) produced more EVs to achieve their CO2 emissions targets. North America
showed a positive growth (+36.6%) compared with Q1 last year, but it is still transitioning to green cars
at a slower pace than other regions. Rest of World declined slightly by 4.3%, with strong sales in Korea
offset by Japan. The lower growth rate compared to other regions is owing to a higher sales base, asboth markets had been less impacted by the pandemic in Q1 2020.

LEM Holding SAPage 2/6

in CHF millions

2021/222020/21

ChangeCommentsBusinesses
Battery Management

10.7

8.8

+22.1%

Motor Control
Charging Systems

8.4
1.0

5.1
0.6

+64.7%+59.9%• Increased demand for High Voltage
products and new product launches• Significant drop in US 12V demand• Strong demand spurred by EV cars
• Continued momentum for battery
electric and hybrid vehicles

Total Automotive

20.1

14.5

+38.7%

Improved profitability
Gross profit for the quarter rose by 29.0% to CHF 42.7 million, principally due to sales volumes as well
as lower air freight costs for customers compared to Q1 last year. The gross margin improved by 120
basis points to 45.7% and we continued to execute various efficiency programs.
We remain vigilant with overheads, so while SG&A costs were up by 5.2% to CHF 13.9 million (CHF13.2 million) to support the extra market demand, they declined to 14.9% of sales (17.8%).
We continue with our long-term investment in future applications with R&D up in absolute terms by
13.9 % to CHF 7.6 million (CHF 6.7 million), although this decreased to 8.1% of sales (9.0%).
EBIT for this quarter improved by 59.6% to CHF 21.2 million (CHF 13.3 million), mainly due to theincrease in revenue. Consequently, our EBIT margin rose by 480 basis points to 22.7% (17.9%).
Compared to Q4 last year, these increases were less significant, with EBIT up by 22.8% and the EBIT
margin up by 180 basis points.
We posted a net profit for the quarter of CHF 17.3 million, up 55.4% from CHF 11.1 million last year,
reflecting the improved EBIT. The net profit margin was 18.5% compared with 15.0% in Q1 and 23.6
% in Q4 last year.
Financial calendar
The financial year runs from 1 April to 31 March
8 November 2021
Half-year results 2021/22
4 February 2022
Third-quarter results 2021/22
24 May 2022
Full-year results 2021/2230 June 2022
Annual General Meeting of Shareholders for the financial year 2021/22
5 July 2022
Dividend ex-date
7 July 2022
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 1,500 people in over 15 countries transform technology potential into powerful answers. We
develop and recruit the best global talent, working at the forefront of mega trends such as renewableenergy, mobility, automation and digitization.
With innovative electrical solutions, we are helping our customers and society accelerate the transition
to a sustainable future.
Listed on the SIX Swiss Exchange since 1986, the company’s ticker symbol is LEHN.
www.lem.com

LEM Holding SA

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Contact: Investment community
Andrea Borla, Chief Financial Officer
Phone: +41 22 706 1250
Email: investor@lem.com
Contact: Media
Cabinet Privé de Conseils s.a. (CPC)
Nick Miles, miles@cpc-pr.com, mobile +41 79 678 76 26
Michael Füglister, fuglister@cpc-pr.com, mobile +41 78 839 07 62

LEM Holding SAPage 4/6

Appendix
Consolidated income statement

Consolidated inco

April to June
In CHF thousands

2021/222020/21

Change In CHF thousands

Sales

93 27274 316+25.5%

Cost of goods sold(50 619)(41 248)

Gross margin

42 65233 068Gross margin (in %)

45.7%

44.5%

Sales expense(6 956)(6 659)Administration expense(6 969)(6 580)Research & development expense(7 588)(6 665)

Other expense

(0)

(0)

Other income77132

EBIT

21 216

13 295

EBIT margin (in %)

22.7%

17.9%

Financial expense

(104)

(86)

Financial expense

Financial income

14115

Financial income

Foreign exchange effect

(205)

258

Profit before taxes

21 04813 482Foreign exchange e+56.1% Profit before taxe

Income taxes(3 761)(2 355)

Income taxes

Net profit of the period

17 28711 126+55.4% Net profit of the p

Net profit margin (in %)

18.5%

15.0%

LEM Holding SA+29.0%

Sales
Cost of goods sold
Gross margin

Gross margin (in %)Sales expense

Administration expe

Research & develop
Other expense
Other income+59.6% EBIT
EBIT margin (in %)Net profit margin (inPage 5/6

Key Figures
2021/22

In CHF millions

Orders received

Q1

2020/21Q2Q3Q4FYChange

Q1Q2Q3Q4FY

Q1 - Q1

Q1 - Q4

Industry

110.8

47.5

55.7

63.9

100.8

267.8

+133.3%+9.9%

Automotive

35.7

12.0

20.2

23.1

38.9

94.2

+197.5%-8.3%

Total LEM

146.4

59.5

75.9

87.0

139.7

362.0

+146.2%+4.8%

Book-to-bill ratio

Q1

Q1

Q2

Q3

Q4

FY

Q1 - Q1

Q1 - Q4

Industry

1.51

0.79

1.06

1.21

1.68

1.19

+90.7%-10.1%

Automotive

1.78

0.83

1.191.081.70

1.24+114.5%+4.6%

Total LEM

1.570.80

1.09

1.17

1.69

1.20+96.2%-7.0%

Q2Q3Q4

FYSales

Q1Q1Q2Q3

Q4FY

Q1 - Q1

Q1 - Q4

Industry

73.2

59.8

52.8

52.8

59.9

225.2

+22.3%+22.3%

Automotive

20.1

14.5

17.0

21.3

22.9

75.7+38.7%-12.4%

Total LEM

93.3

74.3

69.8

74.1

82.8

301.0

+25.5%+12.7%

Q2

Q3

Q4

FY

EBIT

Q1

Q1

Q2

Q3

Q4

FY

Q1 - Q1

Q1 - Q4

Industry

19.2

12.3

12.1

11.4

13.6

49.4+56.6%+40.6%

Automotive

2.0

1.0

2.9

3.9

3.6

11.5

+94.6%-44.0%

Total LEM

21.2

13.3

15.0

15.3

17.3

60.9

+59.6%+22.8%Net profit of the period

Q1

Total LEM

17.3

LEM Holding SA

Q2

Q2

Q3

Q3

Q4

Q4

FYFY

Q1

Q2

Q3

Q4

FY

Q1 - Q1

Q1 - Q4

11.1

12.3

12.6

19.6

55.6

+55.4%-11.6%

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