Ad hoc announcement pursuant to Art. 53 LR – Press release

LEM announces strong sales but lower orders in Q1 2023/24
Geneva, Switzerland, 27 July 2023 – LEM (SIX: LEHN), a leading global company in electricalmeasurement for renewable energy, automation, power network and e-mobility applications,announces Q1 results for 2023/24 (April-June) compared to 2022/23:•Bookings decreased by 48.8% to CHF 81.0 million (CHF 158.1 million)•Sales increased by 23.8% to CHF 112.3 million (CHF 90.7 million); at constant exchange rates,sales increased by 34.6%•

The company benefits from a diverse global distribution of sales, led by China and EMEA:– China CHF 39.8 m (35.5% of total)– EMEA CHF 39.4 m (35.1% of total)– Rest-of-Asia CHF 20.5 m (18.2% of total)– Americas CHF 12.6 m (11.2% of total)•

R&D investments of CHF 8.3 million (CHF 8.5 million), or 7.4% of sales•

EBIT increased by 34.3% to CHF 26.2 million (CHF 19.5 million); the EBIT margin increased to23.3% (21.5%)•Net profit for the period increased to CHF 20.5 million (CHF 14.7 million)

Frank Rehfeld, Chief Executive Officer, said: “The first quarter of our new business year 23/24 was
the strongest in LEM history. We are very pleased about the top-line growth of 23.8% and increased
EBIT margin of 23.3%. At constant currencies, our sales even increased by 34.6%. With supply chains
improving, we delivered many long-standing orders. Long-term demand for electrification continues toincrease, and the fundamentals of our business remain excellent. Therefore, we are continuing toinvest and ramping up production capacity to meet future demand, and our new factory in Malaysia will
start production in early 2024.”
Andrea Borla, Chief Financial Officer, remarked: “EBIT increased by 34.3% to CHF 26.2 million,
which confirms the successful first quarter. Our lower bookings are a result of normalization of ordering
patterns back to pre-pandemic levels, and they also reflect slowing markets, especially in China. We
remain vigilant about possible market volatility in the coming quarters, while we continue to benefit
from risk spread across businesses and regions.”

LEM Holding SA

Page 1/6

Performance by businesses
in CHF millions
Businesses
Automation

Automotive

Renewable Energy
Energy Distribution& High Precision
TrackTotal

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

Q1 2023/24

Q1 2022/23

Change34.3

30.5+12.5%

27.4

21.8+25.7%

21.0
15.6

15.4
13.8

+36.2%+12.6%

14.2
112.3

9.3
90.7

+52.8%+23.8%

Automation
Our products for motor drives in manufacturing equipment, tooling machines, robotics, and conveyor
belts, experienced good sales growth.
AutomotiveSales in our most important market, China, reduced slightly due to supply chain constraints preceding
Q1. This was balanced out by strong sales in Korea and EMEA. We are increasing our production
capacity at our Bulgaria site, which was accredited for Automotive production by IATF.
Renewable Energy
We had very good demand, with China as the major market for our solar products. There was alsoconsiderable demand coming from Europe. The prospects for Renewable Energy remain promising,as the global trend of decarbonization continues to drive long-term growth.
Energy Distribution & High Precision
We increased sales of our DC meter for EV charging stations, with Europe and the US contributing tomajor growth. Demand for our energy grid solutions remained strong, while our High Precision
solutions for test benches and MRI scanners continued to develop well.
Track
Our traction business, with its project-based long investment horizons, grew due to extra demand
coming from the EU, which is renewing energy meters for locomotives in various countries.

LEM Holding SA

Page 2/6

Performance by regionsin CHF millions
Regions
China
Rest-of-Asia
EMEAAmericas

Q1 2023/24

Q1 2022/23

Change

39.8
20.5

37.6
15.1

+5.9%
+35.8%

39.4

28.0+41.0%

12.6

10.1+25.3%

112.3

90.7

+23.8%

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

Total

China
Sales increased despite a competitive market with many new players and sluggish economic growth.
Demand for electric vehicles and solar combined with energy storage slowed considerably. TheAutomation business was relatively flat.
Rest-of-Asia
In South Korea, we sold more sensors for EV and hybrid cars, while business in Japan stood out withstrong sales in Automation and High Precision. In India, we were finally able to deliver many orders for
our Track clients, and the comparatively smaller Automotive business continued to grow.
EMEA
Traction performed very well, supported by investments across the value chain. Our metering solutions
were in high demand, backed by investments in the ramp-up of charging infrastructure. Automotive
and Automation performance was solid.
Americas
Automation continues to show high demand for sensors for processing lines. In Automotive, we gained
from new designs in motor control for EV platforms, while battery management solutions retained astrong position.

Improved profitability
Gross profit was up by 19.6% at CHF 51.8 million (CHF 43.3 million), while the gross profit margindecreased slightly to 46.1%.
SG&A costs were up by 12.8% to CHF 17.3 million (CHF 15.3 million) and accounted for 15.4% ofsales (16.9%). This increase reflects our digitalization projects and recruitment of additional talent.
R&D was down in absolute terms by 2.1% to CHF 8.3 million (CHF 8.5 million), or down at 7.4% ofsales (9.4%).
EBIT improved by 34.3% to CHF 26.2 million from CHF 19.5 million, primarily due to the increase inrevenue. Our EBIT margin was up, at 23.3% compared with 21.5% last year.
The negative impact of foreign exchange translations was CHF 1.2 million, compared to CHF 1.0
million last year, primarily due to CHF appreciation. Group tax expenses of CHF 3.9 million represent
a tax rate of 16.1%.
Net profit increased to CHF 20.5 million, while the net profit margin grew to 18.3% compared with16.2% last year.

LEM Holding SAPage 3/6

Financial calendar
The financial year runs from 1 April to 31 March
10 November 2023 Half year results 2023/24
2 February 2024
9 months results 2023/24
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

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 1,700 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

Contact: Investment community
Andrea Borla, Chief Finance Officer
Phone: +41 22 706 1250
Email: investor@lem.com

LEM Holding SA

Contact: Media
Cabinet Privé de Conseils s.a. (CPC)
Michael Füglister: fuglister@cpc-pr.com, mobile: +41 78 839 07 62
Etienne Vioget: vioget@cpc-pr.com, mobile: +41 79 560 54 83

Page 4/6

Appendix
Consolidated income statement
April to June
2023/24

In CHF thousands

2022/23

ChangeSales

112’344

90’723+23.8%

Cost of goods sold
Gross profit(60’593)
51’752(47’451)
43’271+19.6%

46.1%

47.7%

Sales expense(7’012)(6’673)Administration expense(10’257)(8’629)Research & development expense(8’327)(8’510)

Other income
EBIT

826’16425
19’484

EBIT margin (in %)

23.3%

21.5%

Financial expense

(579)

(325)

Gross profit margin (in %)Financial income

104

63

Foreign exchange effectProfit before taxes(1’209)24’481(1’024)18’198

Income taxes(3’936)(3’517)

Net profit

20’54414’681

Net profit margin (in %)

18.3%

16.2%

LEM Holding SA+34.3%+34.5%+39.9%

Page 5/6

Key Figures
2023/24in CHF millions

Orders received

Q1

Total LEM

81.0

Book-to-bill ratio

Q1

Total LEM

0.72

Q2

Q2

Q3

Q4

FY

Q2

Q3

Q4

FY

112.0

92.1

103.0

465.2

Q1

Q2

Q3

Q4

FY

1.74

1.04

0.89

0.98

1.14-48.8%-21.3%

Q1 - Q1 Q1 - Q4
-58.6%-26.6%

Q1

Q1

Q2

Q3

Q4

FY

30.5

36.9

34.4

34.5

136.3

+12.5%-0.6%

Automotive

27.4

21.8

28.4

25.2

25.4

100.7

+25.7%+7.9%

Renewable Energy

21.015.418.0

16.8

16.7

67.0+36.2%+25.6%

Energy Distribution & High Precision

15.6

13.8

14.1

14.9

16.6

59.4+12.6%

-6.0%

Track
Total LEM

14.2
112.3

9.3
90.7

10.0
107.3

12.2
103.5

11.6
104.7

43.0
406.4

+52.8% +21.8%+23.8%+7.3%
Q1 - Q1 Q1 - Q4

Q1

Net profit of the period

Q1

Total LEM

20.5

LEM Holding SA

Q2

Q2

Q3

Q3

Q4

Q4

FY

Q1 - Q1 Q1 - Q4

Q1
158.1

34.3

26.2

Q4

FY

Automation

Total LEM

Q3

Q4

Change

Sales

EBIT

Q2

Q3

2022/23FYFYQ1Q2Q3Q4FY19.5

26.3

22.6

23.8

92.2

Q1Q2Q3Q4FY14.7

20.5

20.1

20.175.3

Q1 - Q1 Q1 - Q4+34.3%+9.8%

Q1 - Q1 Q1 - Q4+39.9%+2.4%

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