9 Months Results 2022/23
1 April 2022 to 31 December 2022

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

9 Months Results 2022/23

06.02.2023

2

Opening remarks
Continued growth despite challenging Covid situation in China
We are pleased to report a solid quarterQ3 sales of CHF 103.5 million
Again exceeding the CHF 100 million threshold

Sales result mainly driven by our Automotive and Energy Distribution businesses

Americas’ strong performance led by the accelerating adoption of EVs andsolutions for drives
Production capacity affected byLockdowns in China in November
End of China’s zero-covid policy leading to a surge in Covid cases amongst ouremployees in December
Within three weeks our Chinese team returned to full production, which shows theirstrength and commitment
9 Months Results 2022/23

06.02.2023

3

The Executive Committee is now complete

Diverse nationalities andcultures, experience andexpertiseFrank Rehfeld
Chief Executive Officer

Andrea Borla
Chief Finance Officer

Rodolphe Boschet
Chief Human
Resources Officer

Verena Vescoli
Chief Technology Officer

Bastien Musy
Senior Vice President
Europe and Americas

John McLuskie
Senior Vice President Asia

Uwe Gerber
Senior Vice President
Operations

The team is well preparedto lead the organization andto achieve our ambitions

NewMembers

9 Months Results 2022/23

06.02.2023

4

Appointment of Bastien Musy,
Senior Vice President Europe and Americas
Member of the Executive Committee, reporting to CEO

Responsible for Europe and the Americas P&L
Master of Science in Management, University Lyon III, FranceYear

Company/Position

Location

2021 – 2023

LEM
Vice President Global Product Management

Geneva, Switzerland

2020 – 2021

LEM
Head Product Management Automotive

Geneva, Switzerland

2018 – 2019

LEM
Special Projects Manager

Geneva, Switzerland

2016 – 2018

Syngenta
Global Pricing & Commercial Analytics LeadBasel, Switzerland

2015 – 2016

Syngenta
Investor Relations

Basel, Switzerland

2012 – 2015

Syngenta
Head Finance Production & Supply

Singapore

9 Months Results 2022/23

06.02.2023

5

Appointment of John McLuskie,
Senior Vice President Asia
Member of the Executive Committee, reporting to CEO

Responsible for Asia P&L
Electrical and Electronic Engineering, Bachelor Degree, University of Leeds, UKYear

Company/Position

Location

2014 – 2022

Shanghai GKN Huayu Driveline Systems Co. Ltd
Deputy General Manager

Shanghai City, China

2018 – 2022

GKN Automotive China
President

Shanghai City, China

2018 – 2021

GKN Zhongyuan Cylinder liners
DirectorShanghai City, China

2018 – 2021

GKN Driveline Chongqing
DirectorShanghai City, China

2018 – 2021

Shanghai GKN Huayu Driveline Systems Co. Ltd
Vice Chairman of the Board

Shanghai City, China

GKN EVO eDrive Systems
Director and General Manager

Woking, UK2011 – 2013

9 Months Results 2022/23

06.02.2023

6

Appointment of Uwe Gerber,
Senior Vice President Operations
Member of the Executive Committee, reporting to CEO

Responsible for Production, Supply Chain, Purchasing, and Industrial Engineering
Engineering Management, University of Applied Sciences Esslingen, Germany

YearCompany/PositionLocation

2020 – 2023

Bode – Die TürManaging Director & Chief Operating Officer

Kassel, Germany

2018 – 2020

Thermamax
Managing Director & Chief Operating Officer

Mannheim, Germany

2016 – 2020

Mahle Industrial Thermal Systems
Global Chief Operating Officer

Stuttgart, Germany

2012 – 2016

Mahle-Behr North America
Chief Operating Officer NAJuarez, Mexico
Detroit, USA

9 Months Results 2022/23

06.02.2023

7

Penang, Malaysia, site progress
Building handover planned for end of September 2023
Construction slightly ahead of schedule
Recruitment showing significant progress, highquality candidates available in Malaysia
First exports expected early 2024

Strategic location to improve supply chains, increase
resilience, and better meet the needs of customers
in Asia, as well as Europe and the Americas
Main testing base for integrated current sensor (ICS)
products for Automation, Automotive and Renewable
Energy9 Months Results 2022/23

06.02.2023

8Agenda

Opening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

9 Months Results 2022/23

06.02.20239A leading company in electrical measurement
FiveBusinesses

Automation

AutomotiveRenewable
EnergyEnergy Distribution& High PrecisionTrack

9M 2022/23 Sales
CHF m

101.8

75.3

50.3

42.8

31.4

Δ CHF

+5.4%

+20.5%+1.6%+21.2%-0.6%

Δ constant currency+8.5%+20.6%+5.2%+26.0%+4.7%

9 Months Results 2022/23

06.02.2023

10

Sales spread by business

GrowthBalanced portfolio
10%Growth lead by
Automotive and Energy
Distribution
Track impacted bycomponent shortages

34%

14%

17%
25%

Sales

9M 22/23

Q3 22/23

CHF mvs 21/22vs 21/22

Automation

101.8

+5.4%

+10.3%

Automotive

75.3+20.5%+12.2%

Renewable Energy

50.3

+1.6%

+7.0%

Energy Distribution & High Precision

42.8+21.2%+22.0%

Track

31.4

-0.6%

+19.8%

TOTAL

301.6

+9.5%*+12.8%* +12.5% at constant currency rates

9 Months Results 2022/23

06.02.2023

11

Automation
Drives, robots, tooling machines, elevators, and HVAC
CHF m

140

120

In CHF m

100

9M

9MQ3

Q3

2022/232021/222022/232021/22

101.8

96.6

34.4

31.2

80

Sales performance grew favorably, even better withadjusted exchange rate effects

60

Business mainly driven by manufacturing investment
cycle and strong demand for small and medium
power applications

40

20

018/1919/20
FY Business sales

20/21

21/22

22/23

9M Business sales

9 Months Results 2022/23

06.02.2023

12

Automotive
Battery (EV & CE), motor control, and onboard charging
CHF m

100
9080

In CHF m

70

9M

9MQ3

Q3

2022/232021/222022/232021/22

75.3

62.5

25.2

22.5

60
50

Driven by battery management and motor control

40

Robust sales after a record Q2

30

As customers had been placing orders with longer
time horizons, bookings are now slowing down

20
100
18/19

19/20
FY Business sales

20/21

21/22

22/23

Fundamental demand for EVs remains strong, asindicated by a book-to-bill ratio of over 1.0 for thequarter

9M Business sales

9 Months Results 2022/23

06.02.2023

13

Renewable energy
Solar and wind
CHF m

70

60

In CHF m

50

9M

9M

Q3

Q3

2022/232021/222022/232021/22

50.3

49.5

16.8

15.7

40

Sales increased slightly
30

Still bottlenecks for components
20

Prospects for Renewable Energy remain strong
due to favorable government policies andforeseeable easing of supply chain constraints

100
18/19

19/20
FY Business sales

20/21

21/22

22/23

9M Business sales

9 Months Results 2022/23

06.02.2023

14Energy distribution and high precision
Charging stations, smart grid, energy storage, and high precision
CHF m

60

50

In CHF m

9M

9M

Q3

Q3

2022/232021/222022/232021/22

42.8

35.3

14.9

12.2

40

E-mobility driving customer interest in DC Meter, due
mainly due to new customers and growing demandin Europe and US

30

20Flexible Rogowski coils for energy distribution
management contributed to business growth

100
18/19

19/20
FY Business sales

20/21

21/22

22/23

IN family, which offers high precision solutions fortest benches in the EV market, continues to develop
strongly

9M Business sales

9 Months Results 2022/23

06.02.2023

15

TrackTrains, metro, and trackside
CHF m

60

50

In CHF m

9M

9M

Q3

Q3

2022/232021/222022/232021/22

31.4

31.6

12.2

10.2

40

30

20

Our traction business, with its project-based long
investment horizons, continues to be impacted bycomponent shortages

10At constant currencies, growth was still positive, andthe order book has increased considerably

018/1919/20
FY Business sales

20/21

21/22

22/23

9M Business sales

9 Months Results 2022/23

06.02.2023

16

Sales spread by region

GrowthBalanced exposure
12%

Americas and China
lead growth
Close to customers on
the ground in all key
markets

41%
30%

17%

Sales

9M 22/23

Q3 22/23

CHF mvs 21/22

vs 21/22

China

122.0

+13.1%+7.5%

Rest of Asia

51.9+3.5%

+6.2%

EMEA

90.8

-0.4%

+9.3%

Americas36.9+40.4%+63.7%

TOTAL

301.6

+9.5%*+12.8%* +12.5% at constant currency rates

9 Months Results 2022/23

06.02.2023

17

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

9 Months Results 2022/23

06.02.2023

18

Performance at a glance

9M 2022/23
CHF m

9M 22/23

Q3 22/23

vs 21/22

vs 21/22

Orders received

362.2-17.1%-32.6%

Sales

301.6

+9.5%*+12.8%

EBIT

68.3

+6.5%

+2.5%

Net profit of the period

55.3

+2.9%

+8.3%

* +12.5% at constant currency rates

Order book continues to drop to more normal levels after the extreme disruptions of thepast two years
Sales at constant exchange rates increased by 12.5 %EBIT improved mainly due to sales
Net profit margin decreased to 18.3% compared with 19.5%

9 Months Results 2022/23

06.02.2023

19Gross margin
CHF m

200

50%

9M

180
48%

46%

Q3

Q3

2022/23 2021/22 2022/23 2021/22

160
140

9M

In CHF m

142.8

130.1

49.0

44.5

In % of sales

47.4%

47.2%

47.3%

48.5%

120
10044%

80
42%
60
4040%Gross margin increased by 20 basis pts:
Sales prices increases being offset bypurchase price increases

20038%
18/19

19/20

20/21

Full year GM in % of sales

21/22

81% of sales produced in China and Bulgaria

22/23

9M GM in % of sales

9 Months Results 2022/23

06.02.2023

20

SG&A
CHF m

7030%

9M

60

9M

Q3

Q3

2022/23 2021/22 2022/23 2021/22
5020%

In CHF m

49.9

43.6

18.6

15.2

In % of sales

16.6%

15.8%

17.9%

16.6%

4030
10%
20

Absolute increase of CHF 6.3m
Digitalization projects
External consulting support

10Recruitment of additional talent
00%
18/19

19/20

20/21

Full year SG&A in % of sales

21/22

22/23

9M SG&A in % of sales

9 Months Results 2022/23

06.02.2023

21

R&D
CHF m

3010%

9M

9MQ3

Q3

258%

20

2022/23 2021/22 2022/23 2021/22
In CHF m

24.8

22.5

8.0

7.3

In % of sales

8.2%

8.2%

7.8%

7.9%

6%
154%

R&D investment up by 10.0% to CHF 24.8m
due to new hires

102%
500%
18/19

19/20

20/21

Full year R&D in % of sales

21/22

22/23

Long-term investment in future applications
Investment continues to bear fruit with newproducts welcome across markets

9M R&D in % of sales

9 Months Results 2022/23

06.02.2023

22

Financial expense
9M

9M

Q3

Q3

2022/232021/222022/232021/22

Exchange effect

(2.1)

(2.1)

0.4

(1.8)

Other financial expense & income

(0.9)

(0.1)

(0.4)

(0.1)

Total

(3.0)

(2.2)

0.0

(1.9)

CHF m

Currency gains of CHF 0.4 million in Q3, however year-to-date negative foreignexchange effects of CHF 2.1 million, mainly due to Euro devaluation during H1
Financial expenses impacted by expenses of CHF 0.6 million on lease liabilities ofour new headquarters
Higher interest expenses on loans due to increasing CHF and MYR interest rates

9 Months Results 2022/23

06.02.2023

23

Income taxes
9M
2022/239M
2021/22

Expected income tax rate

15.6

14.3

Expected withholding tax rate

0.8

1.2

Expected tax rate

16.4

15.4

Other differences

(1.0)

(2.2)

Effective tax rate

15.4

13.2%

The Group tax expenses of CHF 10.1 million represent a tax rate of 15.4%
Tax credits have been reflected in R&D expenses since March 2022; excluding
this effect, last year’s tax rate would have amounted to 14.7%
Chinese profit share increased, resulting in a slightly higher tax rate

9 Months Results 2022/23

06.02.2023

24

Income statement
9M

9M

Q3

Q3

CHF m

2022/232021/22

Change2022/232021/22

Sales

301.6

275.5

+9.5%

103.5

91.8

Gross margin %

47.4%

47.2%

+0.2%pt

47.3%

48.5%

Operating expenses(74.5)(65.9)+12.9%(26.4)(22.5)

EBIT

68.364.2

+6.5%

22.6

22.0

EBIT margin %

22.7%

23.3%

-0.6%pt

21.8%

24.0%

Net financial expenses

(3.0)

(2.2)

+33.9%

0.0(1.9)

Income tax(10.1)(8.2)+23.0%

(2.5)

(1.6)

Net profit

55.3

53.7

+2.9%

20.1

18.5

18.3%

19.5%

-1.2%pt

19.4%

20.2%

Net profit margin %9 Months Results 2022/23

06.02.2023

25

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

9 Months Results 2022/23

06.02.2023

26

Outlook – Financial Year 2022/23
Businesses continue to benefit from the fundamental
drivers of decarbonization, electrification, automation,and mobility
Growth remains restrained by shortages, mostly
semiconductor components
We remain aware of the risk of potential recessions inkey markets

For the FY 2022/23, we expectfrom CHF 390 to 400 million (CHF 373.4 million for2021/22)
EBIT margin above 20%

9 Months Results 2022/23

06.02.2023

27

Q&A

9 Months Results 2022/23

06.02.2023

28

Financial calendar and contact details
The financial year runs from 1 April to 31 March

For further information

25 May 2023

Full year results 2022/23

Andrea Borla, CFO

29 June 2023

Annual General Meeting FY 2022/23

Phone: +41 22 706 12 50

4 July 2023

Dividend ex-dateE-mail: investor@lem.com

6 July 2023

Dividend payment date

9 Months Results 2022/23

06.02.2023

29

lifeenergy
motion