Ad hoc announcement pursuant to Art. 53 LR

LEM with strong performance in the first half of 2023/24
Geneva, 10 November 2023 – LEM (SIX: LEHN), a global leader in electrical measurement forautomation, e-mobility, renewable energy, power network and railroad applications, announces its
results for the first half of 2023/24 (April-September):•Sales climbed 12.8% to CHF 223.3 million (H1 2022/23: CHF 198.1 million); at constant exchange
rates, the increase was 22.0%.

•LEM achieved the strongest growth in the EMEA region with 47.1%; Rest of Asia reached 30.2%
and Americas 5.6%. China was down 16.9% year-on-year due to the economic slowdown, atconstant exchange rates, the decline was only 4.7%.

•Starting from the previous year's peak, bookings further normalized to CHF 141.5 million (CHF270.1 million); the book-to-bill ratio is 0.63.

•

EBIT increased by 12.9% to CHF 51.7 million (CHF 45.8 million); the EBIT margin was maintained
at a high 23.1%. Net profit climbed to CHF 43.4 million, resulting in a net profit margin of 19.4%(CHF 35.2 million; 17.8%).

•

Operating cash flow amounted to CHF 37.3 million (CHF 36.8 million).

•Following the strong first half of the year, LEM takes a more cautious view on the second half; forthe full financial year 2023/24 sales in the range of CHF 420 to 440 million and an EBIT margin
above 20% are expected.

Frank Rehfeld, Chief Executive Officer, said: "The first half of 2023/24 was the best in LEM's history.
We were able to successfully develop our businesses and benefit from fundamental, environmentallyfriendly developments in electrification, renewable energies and e-mobility. These megatrends willremain dominant in the future. LEM continues to drive innovation to expand its technologicalleadership. In addition to our usual high level of investment in R&D, we recently entered a collaboration
with TDK Corporation. TDK will supply next-generation chips for our integrated current sensors, whoseperformance parameters will benefit our customers in the automotive and industrial markets in the longterm."
Andrea Borla, Chief Financial Officer, commented, "Sales growth of 12.8% to a new record and anEBIT margin of 23.1% are encouraging. Considering the strong negative currency impact, without
which sales would have increased by as much as 22.0%. The lower order intake reflects thenormalization of ordering patterns to pre-pandemic levels and the slowdown in some key markets.
However, the fundamental growth drivers remain intact. To meet the growing demand over the comingyears, we are expanding our production capacities. The new plant in Malaysia will start production
ahead of schedule, before the end of 2023."

LEM Holding SAPage 1/7Sales by businessin CHF millions
BusinessAutomation

Automotive

Renewable Energy
Energy Distribution& High Precision
TrackTotal

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

2023/24H1

2022/23
H1

Change

66.9

67.4

-0.8%

53.4

50.1

+6.5%

40.8
32.6

33.4
27.9

+22.2%+16.7%

29.7
223.3

19.2
198.1

+54.6%+12.8%

Automation
The automation business showed solid development. However, growth was offset by negative
exchange rate effects. One driver of the business is the trend towards sustainable and customeroriented solutions in manufacturing, particularly in EMEA, where LEM is excellently positioned with its
products. In China, sales weakened slightly due to declining exports.
Automotive
Automotive growth was driven by strong sales in EMEA and South Korea. In both regions, LEM sawstrong demand for products for battery management systems, engine control and onboard chargers.
In China, the most important market, sales were below the prior-year period. LEM is working at a highpace to make up for the lag caused by supply shortages during the Covid pandemic through innovationand pricing initiatives.
Renewable Energy
In Renewable Energy, LEM saw strong demand from EMEA, Americas, Japan and India. 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, the fundamental growth trend for renewable energies is continuing in the Chinese market.
Energy Distribution & High PrecisionEnergy Distribution & High Precision reported robust growth. Strong momentum was provided by theDC Meter for charging stations for electric vehicles. After major customers in EMEA had already placed
substantial orders, smaller manufacturers of charging infrastructure also followed suit.
Track
Starting from a weak prior-year base, the Track business achieved a jump in sales. The renewal ofenergy meters for locomotives in various EU countries generated additional demand in EMEA. InChina, Track can also report double-digit growth. Hence the business, which is characterized by long
investment cycles, returned to its usual growth path.

LEM Holding SA

Page 2/7

Sales by region
in CHF millions
RegionChina
Rest of Asia
EMEA
Americas2023/24
H12022/23
H1Change

68.2
44.2

82.1
34.0

-16.9%+30.2%

85.9

58.4+47.1%

25.0

23.6

+5.6%

223.3

198.1

+12.8%

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 half of 2023/24. This was due to slow economic
growth, declining exports of solar systems, lower sales of products for e-mobility, high price pressure,and significantly negative currency effects. Nevertheless, the strong growth in the Track business wasparticularly satisfying.
Rest of Asia
In sensors for electric and hybrid vehicles, LEM achieved strong growth in South Korea and to a lesser
extent in Japan. Automation solutions were also in demand in Japan. 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 was handed over to LEM
and the teams have moved into the premises. The first products to be exported from Malaysia will bemanufactured before the end of 2023.
EMEA
Business in EMEA went extremely well, driven by strong demand in all business areas and anormalization of supply chains. DC Meters saw a jump in sales due to extensive investments in theexpansion of charging infrastructure. Automotive, Renewable Energy and Track also performed well.
Americas
The Americas region delivered a solid performance in the face of overall subdued investment activity
and a negative currency impact. One focus in the reporting period was on expanding the sales andfield service team to broaden the customer base and accelerate growth, particularly in e-mobility.
Profitability maintained at a high level
Gross profit for the first half of 2023/24 increased by 11.6% to CHF 104.7 million (CHF 93.8 million).
The gross profit margin decreased slightly from 47.4% to 46.9%. While the gross margin was 46.1%
in the first quarter due to higher costs for electronic components, it increased to 47.7% in the secondquarter thanks to an improved business mix.
SG&A costs increased by 11.8% to CHF 35.1 million (CHF 31.4 million). This increase was due toLEM's investments in digitalization projects and build-up costs for the new production facility inMalaysia. Overall, SG&A costs as a percentage of sales remained constant at 15.7% (15.8%). LEM
continued its investment in future applications, reflected in the 7.5% increase in R&D costs to CHF
18.0 million or 8.0% of sales (CHF 16.7 million; 8.4%).

LEM Holding SAPage 3/7LEM increased EBIT by 12.9% from CHF 45.8 million to CHF 51.7 million. The EBIT margin was kept
constant at a high 23.1%.
The effective tax rate is 10.6% due to the increase in deferred tax assets as a result of the increasein the Canton of Geneva tax rate from 1 January 2024. Without this one-off event, the tax rate would
have been 15.6%.
Net profit climbed from CHF 35.2 million to CHF 43.4 million, mainly due to the better operating resultand lower taxes. As a result, the net profit margin increased to 19.4% (17.8%).

OutlookAfter the very strong first half of 2023/24, LEM takes a more cautious view on the second half of theyear. The order backlog provides a solid basis, although customer ordering patterns are becoming
more short-term again, as was the case before the Covid pandemic. A cautious view is warranted by
the recessionary environment in relevant markets.
From today's perspective, LEM expects for the full financial year 2023/24 sales in the range of CHF
420 to 440 million and an EBIT margin above 20%.

Conference call and audio webcast
Frank Rehfeld, CEO, and Andrea Borla, CFO, will explain the 2023/24 half-year results and provide anoutlook for the current financial year today at 14:00 CET at a media and investor conference call andaudio webcast.
To participate in the conference call, you can register here. After registration, you will receive a
confirmation by e-mail with individual dial-in data. As a participant in the telephone conference, you
can follow the presentation here.
The presentation will be broadcast as a live audio webcast. To access, please use this link. Questions
can be asked via the chat function. A replay will be available at the same day at this link.

Download link
The ad hoc announcement, Half-Year Report and presentation are available in the Investor Relations
section of the LEM website (www.lem.com/en/investors).

Financial calendar
The financial year runs from 1 April to 31 March
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 Holding SAPage 4/7

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
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 5/7

Appendix
Consolidated income statement
April to September
In CHF thousands

2023/242022/23

ChangeSales

223’341

198’066+12.8%

Cost of goods sold(118’665)(104’240)

Gross profit

104’675

93’826

46.9%

47.4%

Sales expense(14’836)(13’675)

Administration expense(20’260)(17’709)

Research & development expense(17’958)(16’711)

4222

EBIT

51’66445’752

EBIT margin (in %)

23.1%

23.1%

Financial expense(1’478)(717)

Financial income

213

165

Foreign exchange effect(1’885)(2’464)

Profit before taxes

48’51442’736

Income taxes(5’119)(7’526)

Net profit

43’39535’210Net profit margin (in %)

19.4%

17.8%

Gross profit margin (in %)Other income

LEM Holding SA+11.6%+12.9%+13.5%+23.2%

Page 6/7

Key Figures
2023/24in CHF millions

Orders received

Q1Q2

Total LEM

81.060.5

Book-to-bill ratio

Q1

Q2

Total LEM

0.720.55

Q3Q3Q4FYQ2Q3Q4

FY

112.0

92.1

103.0

465.2

Q1

Q2

Q3

Q4

FY

1.74

1.04

0.89

0.98

1.14

-46.0%-47.6%

Q2 - Q2 6M - 6M
-47.8%-53.5%

Q1

Q2

Q1

Q2

Q3

Q4

FY

34.3

32.6

30.5

36.9

34.4

34.5

136.3

-11.7%-0.8%

Automotive

27.4

26.0

21.8

28.4

25.2

25.4

100.7

-8.3%

+6.5%

Renewable Energy

21.0

19.8

15.4

18.016.8

16.7

67.0

+10.1% +22.2%

Energy Distribution & High Precision

15.6

17.0

13.8

14.1

14.9

16.6

59.4

+20.7% +16.7%

Track

14.2

15.6

9.3

10.0

12.2

11.6

43.0

+56.4% +54.6%

Total LEM

112.3

111.0

90.7

107.3

103.5

104.7

406.4

+3.4% +12.8%

Q1

Q2

26.2

25.5

Net profit

Q1

Q2Total LEM

20.5

22.9

LEM Holding SA

Q3

Q3

Q4

Q4

FY

Q2 - Q2 6M - 6M

Q1
158.1

Automation

Total LEM

Q4

FY

Change

Sales

EBIT

Q3

Q4

2022/23

FYFY

Q2 - Q2 6M - 6MQ1Q2Q3Q4FY

Q2 - Q2 6M - 6M

19.5

26.3

22.6

23.8

92.2

-2.9% +12.9%

Q1Q2Q3Q4FY

Q2 - Q2 6M - 6M

14.7

20.5

20.1

20.1

75.3

+11.3% +23.2%

Page 7/7