Annual Review
18 | 19

32

36

R&D focus

Talent and values
27

Mega trends

22

Automotive

50 %

28

Trends, strategy,organization

Contents
4
6
14
18
22
27
28
32
34
36
43
44

Welcome
Leading the world
Financial results
Industry
Automotive
Enabling mega trends
Trends, strategy, organization
R&D focus
Board of Directors
Talent and values
Responsibility
Information for investors

Financial Report download PDF→ www.lem.com/en/investors

18

IndustryWelcome all our
stakeholders

This year we have separated our
traditional annual report into
two documents. The first part is
this Annual Review which is
aimed at a broader readershipamong investors, customers,
business partners, employees
and local communities. Our goal
is to better explain the mega
trends driving LEM’s future growth,
why our products matter toso many parts of the economy,
how we are investing in newtechnologies and what we aredoing to develop and attract
the best global talent. The second document contains ourfinancial statements and can befound on our website.

We are also proud to announce the launch ofa new brand identity for LEM. The time is right,
given the changes in our markets and the exciting new prospects for our business, to improve the visibility of LEM and “tell our story ina clearer way”. You will notice the updated
logo, building on the heritage of our magnetic
coil, plus a refreshed suite of colors. Most importantly, we have a new claim for what LEM
stands for – Life, Energy, Motion – which is
explained on pages 8 – 13.
For those of you new to our company, we havealso simplified who we are into a single sentence: “Leading the world in electrical measurement, LEM engineers the best solutions
for energy and mobility, ensuring that our customers’ systems are optimized, reliable andsafe.”
Mega trends accelerating change
Our growth is driven by mega trends whichgive multiple opportunities to leverage LEM’s
expertise and provide returns to shareholders. These trends drive demand for electricalsensors: renewable energy, decarbonization,energy efficiency, reliable energy, distributed
energy, mobility, automation and digitization.
Our strong heritage is Industry applications
where we are the market leader and have significant growth potential, while our fastest
growing sector is Automotive applications.
Far from being a mature market, the current
sensing products are undergoing significant
mutations, driven by new applications andtechnologies.
A more agile LEM organization
We have the strength of a diversified global
footprint, with a leading presence in China.
However, we are making the organization moreagile to ensure we capture and manage thisglobal growth. Our HQ in Geneva, Switzerland
is setting strategy and standards, leading in-

LEM Annual Review 18 | 19

4

novation and coordinating all our global sites;
these are being empowered with skills anddecision making in R&D, operations, sales andquality control. Production in Beijing and Sofia
now accounts for 80 % of global output.
LEM is made of the expertise, talent and leadership of the 1,500 people working relentlessly to bring customers the best solutions.
We are investing resources in talent development programs and coaching sessions to
help talents grow and shape our future.
R&D investments start to bear fruit
This year we continued to increase our investment in R&D to assure long-term growth,with investments up from CHF 21.3 million in
2017/18 to CHF 27.6 million in 2018/19. These
investments are leading us from a traditional,
electromagnetic sensors company into a diversified business of various integration levels. Unlike a pure player, our R&D team needs
a diversified skillset to deliver the best product; this is reflected in the 16 % growth in ourinternal R&D team, and we hired a total of 21
engineers. This investment is bearing fruit,as this year we launched 6 products in the
Industry segment and 2 products in the Automotive segment.
Robust financial results
We are pleased to report another year ofrobust results.
Sales in the financial year 2018/19 totaled CHF
321.6 million, an increase of 6.8 %, and up
5.8 % at constant exchange rates. In the context of the global economic slow-down, thiswas a more than satisfactory performance.
61 % of our top-line growth came from Automotive customers, driven by the transition togreen cars.

EBIT increased to CHF 64.8 million from CHF
63.1 million, notwithstanding the increased
R&D spend. Our EBIT margin was slightly
down at 20.1 %, but remains robust in thelong term. We posted a net profit for the yearof CHF 52.4 million, down from CHF 54.4 million last year. Last year’s net profit included a
one-off tax related benefit of CHF 3.4 million.
For the financial year 2018/19, the Board of
Directors is pleased to propose a dividend increase to CHF 42 per share, which represents
a dividend payout ratio of 91.4 %. This dividend proposal is a sign of confidence in thecontinued success of LEM.
Thank you
On behalf of the entire Board of Directors andthe Executive Management, we thank shareholders for the confidence they have placedin us. Special thanks go to our employees
worldwide for their expertise, reliability andinnovative solutions. We would also like to extend our gratitude to our customers, suppliers
and business partners for the many successful collaborations.
We hope you enjoy this first new look Annual
Review. Hopefully you will gain more insight
into what drives our business and how LEM is
helping our customers and society accelerate
the transition to a sustainable future.

Andreas Hürlimann
Chairman of the Board of Directors

Frank Rehfeld
Chief Executive Officer

5

LEM Annual Review 18 | 19

Leading the world inelectrical measurement
Sa

EuropeGeneva, Switzerland
Frankfurt, Germany
Vienna, Austria
Brussels, Belgium
Randers, Denmark
Paris, France
Padova, Italy
Skelmersdale, UK
Lyon, France
Sofia, Bulgaria

A leading company in electricalmeasurement, LEM engineers
the best solutions for energy
and mobility, 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 theforefront of mega trends suchas renewable energy, mobility,
automation and digitization.

on
cti tionles &D rodu dap
R
P
A

China
BeijingShanghai
Shenzhen
Xian
Hefei
Taipei, Taiwan
North America
Milwaukee, Wisconsin
Columbus, Ohio
Amherst, Massachusetts
Los Angeles, LA
Rest of world
Pune, India
Seoul, South Korea
Tokyo, Japan
Tver, Russia

L EM headquarters
Geneva, Switzerland

Agents/Distributors

With innovative electricalsolutions, we are helping
our customers and society
accelerate the transition
to a sustainable future.

LEM Annual Review 18 | 19

6

7

LEM Annual Review 18 | 19

How many of us desire life
unplugged?

life
LEM Annual Review 18 | 19

8

Even brief downtimes are unsettling. We lovethe ease, convenience, color, brightness,
speed, mobility, on-command, real-time connectedness that electricity provides. Streams
of steady, safe, uninterrupted electric flow
run our devices, power our vehicles, drive ourfactories, enhance our healthcare, recharge
our batteries, send our communications, light
our communities, warm and cool our buildings,
and capture our imaginations.
None of this would be possible without electric
sensors. Many provided by LEM.
As quality of life improves, energy consumption
per capita rises. LEM products help control
this consumption, encourage renewable energy
and provide continuous power supply.

9

LEM Annual Review 18 | 19

Smart grids, microturbines,
wind and solar power

energyProviding affordable and clean energy is criticalfor a sustainable future. At LEM we are addressing
this challenge by developing sensors that meetthe most demanding standards of accuracy andsafety, while adapting to higher power densities
in battery and charging systems. LEM is also engineering a range of compact semiconductorbased sensing solutions.

LEM Annual Review 18 | 19

10

11

LEM Annual Review 18 | 19

Trains, trams, buses, conventionalcars, green cars and elevators

motion
The world’s demand for electrical motion is everincreasing. LEM provides sensor solutions formobility applications which can play a remote or
intimate role in our everyday lives. We have astrong heritage of nearly 50 years as market leader
with best-in-class products. Today LEM is at theforefront of new sensors, combining hardware andsoftware with added functionalities and value,
to create new business opportunities for our customers.

LEM Annual Review 18 | 19

12

13

LEM Annual Review 18 | 19

Financial results

Robust financial performance
Sales in the financial year 2018/19 totaled
CHF 321.6 million, an increase of 6.8 % compared with the previous year, and up 5.8 %at constant exchange rates. In the context ofthe global economic slow-down, this was amore than satisfactory performance. 61 % of
our top-line growth came from Automotive
customers, driven by the transition to green
cars.
We benefit from a good geographic spreadof business. China leads the way with 33 %of total sales (33 % in 2017/18), Europe 33 %
(34 %), North America 13 % (14 %) and therest of the world 20 % (19 %). Sales growth
was good in China (+8.0 %), steady in Europe(+5.8 %), but flat in North America (+0.7 %)and strong in the rest of the world (+10.8 %).
In the financial year 2018/19, orders wereflat overall at CHF 320.5 million, reflecting
the headwinds for the Industry segment andconventional cars, while green car demand
was buoyant. The full year book-to-bill ratio
reached 1.0, down from 1.06.
Gross profit rose by 5.5 % to CHF 146.5 million and the gross margin reached 45.6 %.
This is 50 basis points lower than in the prior year. We continued to shift production tocost-effective locations, and executed various efficiency programs, particularly along
our supply chain. These improvements wereoffset by a non-recurring impairment loss of
CHF 2.7 million on underutilized industry machinery, plus a one-off provision of CHF 1.8
million for unused stock related to a discontinued automobile product.
We remain vigilant with overheads. Sales,
general and administration spending (SG & A)
was kept essentially flat at CHF 54.4 million,
and declined to 16.9 % of sales from 18.2 %last year.

LEM Annual Review 18 | 19

14

We continued to increase investment in research and development (R&D), up by 29.7 %to CHF 27.6 million, or 8.6 % of sales, up from
7.1 %. This long-term investment will ensure
LEM has the right new technologies and applications for customers, as their businesses
are increasingly driven by renewable energy,
mobility, automation and digitization.
EBIT for the year 2018/19 increased to CHF
64.8 million from CHF 63.1 million, notwithstanding the increased R&D spend. Our EBIT
margin was slightly down at 20.1 %, compared with 21.0 %, but remains robust in thelong-term.
Net financial income shows a deficit of CHF
2.5 million, due to foreign exchange losses on hedges and open balance sheet positions. The Group tax rate for this year was
15.9 % thanks to the confirmed status of our
China operations as a High New Technology
Enterprise.

Key figures 2014/15 to 2018/19
in CHF millions

2014/15

2015/162016/172017/18 1

2018/19

Orders received

251.0

256.5

271.2

319.7

320.5

Book-to-bill ratio

0.97

0.98

1.03

1.06

1.00

257.8

261.5

264.5

301.2

321.6

Sales
Gross margin
In % of sales
EBIT
In % of sales

118.4

120.4

123.6

138.9

146.5

45.9 %

46.0 %

46.7 %

46.1 %

45.6 %

54.2

52.9

55.8

63.1

64.8

21.0 %

20.2 %

21.1 %

21.0 %

20.1 %Net profit for the year

43.1

43.5

44.6

54.4

52.4

EPS basic (CHF)

37.86

38.18

39.11

47.76

45.97
42.00 2

Dividend per share (CHF)

40.00

35.00

35.00

40.00

Operating cash flow

50.2

45.6

52.8

54.1

53.5

Investing cash flow

–9.7

–6.6

–13.2

–15.1

–14.8

31.3.2015

31.3.201631.3.201731.3.2018 1

31.3.2019

In CHF millions,%

Net financial assets / (liabilities)

20.9

13.6

12.8

12.6

4.5

Shareholders’ equity

91.9

85.9

90.5

111.6

113.1

Equity ratio (in % of assets)

65.0 %

61.3 %

60.7 %

60.0 %

60.5 %

Market capitalization

910.3

929.1

1’064.8

1’812.6

1’459.2

Employees (in FTEs)

1’274

1’388

1’453

1’527

1’477

1 Restated financial statements

We posted a net profit for the year of CHF
52.4 million, down from CHF 54.4 million lastyear. Last year’s net profit included a one-off
tax related benefit of CHF 3.4 million. Cashflow from operating activities was CHF 53.5
million (–1.1 %) and free cash flow was CHF
38.8 million (–0.6 %). This decrease is a consequence of increases in net working capital
principally due to inventories.
Our balance sheet remains strong and essentially debt-free. As of 31 March 2019, total
assets increased to CHF 187.1 million. Shareholders’ equity reached CHF 113.1 million, representing an equity ratio of 60.5 % (60.0 %as of 31 March 2018).

2 Proposal of the Board of Directors to the Annual General Meeting of Shareholders on 27 June 2019.

Sales per segment

Regional sales breakdown

in CHF millions

in CHF millions

250

100

200

80

150

60

100

40

50

20

0

14/15

15/16

Automotive segment

16/17

17/18

Industry segment

18/19

0

14/15

Europe

15/16

16/17

North America

17/18

China

15

18/19

Rest of world

LEM Annual Review 18 | 19

6.8
Sales growth

27.6 m
R&D investments
8.6 % of sales

64.8 mFinancial results%

Restatement of accounts
We have restated the financial statements forthe year 2017/18 as a wrong conversion rate
was applied for the actuarial calculation of
our Swiss pension plan obligation. This rate
impacts the plan’s service costs and also ourbalance sheet. The restatement has resulted
in an increase of CHF 1.4 million to EBIT (revised to CHF 63.1 million) and an increase of
CHF 1.1 million to net profit (revised to CHF
54.4 million) for the year 2017/18. These income adjustments, and those to the balance
sheet, are reflected in this year’s publishedFinancial Report, and explained in note 3 tothe consolidated financial statements.
Increased dividend
Based on the results for 2018/19 and the solid outlook, the Board of Directors proposes
an increased dividend of CHF 42 per share,
up from CHF 40 per share, payable on 4 July
2019. The proposal follows LEM’s dividend
policy of distributing significantly more than
50 % of its consolidated net profit to shareholders and corresponds to a payout ratio of
91.4 %.

ever, government policies remain an important volatile factor, while increasing competition in green cars will bring mounting pricepressure. Geopolitical tensions or increasing
trade barriers may pose a downward risk toglobal growth and our businesses.
We plan to further increase investment in
R&D, leveraging new technologies for example in electric powertrains, smarter sensors,
DC metering and charging systems. We continue to improve the efficiency of production,
while also empowering our global sites withfull capabilities in R&D, operations, sales andquality management. This will make our organization more agile, increase our speed of execution and reduce the time to market.
Taking all internal and external factors into account, we expect another solid financial performance for LEM in the coming year.

“The current sensor market
is expected to grow at
a CAGR of 8.43 % to reach
Solid outlook
The fundamental prospects for LEM remain USD 3.6 billion by 2024
strong, driven by the mega trends of energy
from 2.4 billion in 2019.”
efficiency, mobility and automation. Thanks
to our brand heritage and market leadership,
top line growth in the Industry segment will
be steady, while susceptible to global economic activity. The green cars business continues to offer the most growth potential, andwill replace that of conventional cars. How-

Report Linker, industry report, April 2019

EBIT
20.1 % of sales

LEM Annual Review 18 | 19

16

17

LEM Annual Review 18 | 19

Industry segment
performance

Global industry market –accelerating change
Following a broad-based upswing in cyclical
growth that lasted nearly two years, the global economic expansion decelerated in thesecond half of 2018. Activity softened amid
an increase in trade tensions and tariff hikes
between the United States and China, a decline in business confidence, a tightening offinancial conditions and higher policy uncertainty across many economies. After peaking
at close to 4 percent in 2017, global growth
remained strong, at 3.8 percent in the firsthalf of 2018, but dropped to 3.2 percent in
the second half of the year. Conditions haveeased in 2019 as the US Federal Reserve
signaled a more accommodative monetary
policy stance and markets became more optimistic about a US-China trade deal, but theyremain slightly more restrictive than in the fall
(Source: IMF).
Against this difficult global economic backdrop, the Industry segment delivered a steady
performance. We continue to be market leader in our chosen business segments, with ashare of over 60 %.
We are adapting to significant and accelerating changes across markets, such as higher
power densities, the electrification of mobility,
digital disruption, smart grids and distributed
energy resources.
LEM delivers steady performance
Sales in the Industry segment increased by
3.3 % to CHF 250.2 million in the financial year
2018/19; at constant exchange rates the sales
increase was 2.4 %. Orders decreased by–4.1 % to CHF 245.7 million, resulting in a fullyear book-to-bill ratio of 0.98. The economic
environment differed across regions. Sales
in China were down by –3.6 %, mainly due toa softening in the solar business, but China
remains our most important single country,

LEM Annual Review 18 | 19

18

Hybrid solar inverter withbattery storage inside
A hybrid inverter simultaneously manages inputs from both solar panels anda battery bank. It charges batteries
with either solar panels or the electricity grid, depending on which is more
economical or preferred.
representing 29.2 % of Industry sales. Sales
in North America increased by 9.6 %, thanks
to our increased share with major players,
while in Europe sales rose by 5.2 % mainly
due to the growth in renewables. Rest of theworld sales increased by 7.3 %, and India performed well. EBIT increased from CHF 52.4
million to CHF 54.9 million while the EBIT margin improved from 21.6 % to 21.9 % thanks
to our focus on cost improvements, notably
across the supply chain.
Drives and welding
Sales in the drives and welding business wereflat at CHF 113.3 million, with strong sales performances in North America, Europe and therest of the world offset by sluggish demandin China and Japan, which is expected to lastthrough mid-2019. Automation and energy
savings applications were the main growth
drivers while there was low demand for consumer electronics and the semiconductor
industry. We recorded strong interest in our
new product family with integrated current
sensors for small drives and robotics. Competition is active with new products and ASICs.
Renewables
Sales in the renewables business grew by
3.2 % to CHF 77.0 million. Solar equipment
production continued to move from North
America to Europe and China. Thus, the renewable energies and power supplies business is driven by the Chinese and European
solar industry producing for the world market. China sales were hit substantially by thechange in solar policy in May 2018 which waslater reversed in January 2019. We performed
well in Japan and gained market share in Europe and India. Wind activity was weak inmost regions. We continue to build a pipelineof smart grid projects and won some designs
with new products.

Every home with a battery storage
system needs an inverter to convert thestored DC electricity into appliancefriendly AC electricity.
LEM ATOThe ATO measures the total household
consumption which enables it todecide when to charge/discharge thebattery, and the HO controls the
charge/discharge of current into thebattery.

Grid

Meter
Photovoltaic

Hybrid inverter
Battery

LEM HO

19

LEM Annual Review 18 | 19

Industry segment performance

Traction
We performed stronger than expected, andtraction sales grew by 8 % to CHF 48.6 million
thanks to a global catch-up of infrastructure
investments and some individual projects.
We achieved strong sales with light rail andlocomotive projects in India and China as
well as energy metering and track-side maintenance projects in Europe. We continue tobenefit from higher investments in Eastern
Europe and Russia, while the US market remains very weak.

Industry sales
2018/19High precision
In the project-driven high-precision business,sales jumped significantly by 20.2 % to CHF
11.3 million, with a particularly strong performance in China due to green
cars test bench applications.
Activity in the global medical
market was stable, but thetest and measurement market boomed in the US andEurope. Our new product line
(IN 1000 and IN 2000) was
well received by customers.
Moving into new markets
As market leader, we continue to invest in new businesses where we can leverage ourstrong heritage in industry
applications.

CHF 250.2
millionDrives and welding
Renewables
Traction
High-precision

LEM Annual Review 18 | 19

113.3 m77.0 m
48.6 m
11.3 m20

Our smart grid business isprogressing nicely, with a fully staffed product management team, customer outreach and first design wins.
We are focusing on integrators and new Rogowski coils.

Elevator controller andsensors
Motor
The elevator control unit ensures the
motor moves in the right direction
and stops exactly at the right position.
Current sensors ensure that the
motor is powered with the correct
current.

Our new DC meter project for charging green
cars is well under way, working alongside keyclients, with a fully-certified product plannedfor 2020.

Doors
The control unit integrates the motorsof the sliding doors. The current
sensor measures motor current forsmooth motion and to detect if
something (a finger, a leg) obstructs
the doors.

Our recently launched GO series of integrated current sensors (chip-based sensors) has
been very well accepted. These and otherpipeline projects will enable us to penetrate
new markets with low-power, high-volume applications such as chillers and air conditioners.
LEM organization – accelerating change
Our main challenge this year was to deal with a
pan-industry component shortage. We closely cooperated with our supply chain and managed to meet our customers’ varied demands.
Operationally we reduced costs, particularly
across the supply chain, and improved automation of production lines in China and Bulgaria. There is a drive to improve quality, withprocess optimization and skills development.
Our R&D teams have been strengthened in
Geneva, China, France and Bulgaria, withfunctional leadership for electronics, mechanical and software. Design cycles were
historically 7–10 years, but in China these are
now 2–3 years, so we need to improve ouragility and speed to market.
OutlookThe Industry segment continues to be impacted by the different economic and tradeLTS
tensions around the world. However, we benefit from a portfolio which is well balanced
geographically and across applications. We
foresee steady growth in all our businesses
and will maintain our market leading share ofover 60 %. We continue to build our pipelineof innovations and to launch new productswith new features.

Motor
2

Motor

2

3
B

Controller

1

A

LTS

Door control
unit

LEM LA 150-P

2

2

3
B

1

A

LEM LTS

21

LEM Annual Review 18 | 19

Automotive segment
performance

Global car market – accelerating change
Global vehicle production in 2018 decreased
by 6.3 % to 91.5 million units, reflecting general economic uncertainty and the shift awayfrom standard internal combustion engine(ICE) vehicles. Major markets to decline were
China, South Korea, UK, Germany, and Canada; growth was recorded in the USA, Japan,
Mexico and Brazil (source: OICA). Green cars
again saw new record production levels lastyear due to government policies, new models
and intensifying consumer appetite for alternative fueled vehicles.

LEM green car sales
growth +46.7 %In CHF millions

48.6

33.1
29.2
18.5
12.7
9.5
3.0
GlobalChina

2.0

Europe2018/192017/18

3.6

3.0

North
America

ROW

Electric vehicles (EV), defined as plug-in hybrids andbattery electric vehicles, but
excluding traditional hybrids,
saw global deliveries reach
2.1 million, 64 % higher thanfor 2017. 69 % of sales were
all-electric (BEV) and 31 %were plug-in hybrids (PHEV).
All-electric vehicles havegained a 3 % share in the mix
since 2017, driven by growthin China, the arrival of theTesla Model-3 and losses for
PHEVs in Europe when the
new fuel economy test procedure WLTP became effective in September (source:
EVvolumes.com).

China remained the unchallenged leader with 4.3 % of
all vehicles now electric; sales doubled to 1.2
million units and represented 56 % of global
EV sales. Europe grew by 34 % to 409,000
units; USA is catching up with growth of 79 %to 358,000; however, Japan dropped slightly
to 53,000 units.
At the end of 2018 the global fleet of plugins was 5.4 million, counting light vehicles.

LEM Annual Review 18 | 19

22

Hybrid electric vehicles /Electric vehicles
Battery management
High accuracy sensors provide all thenecessary information to improvethe efficiency of the charging and discharging process of the battery
management system.
Medium and heavy commercial vehicles add
600,000 units. Forecast EV sales for 2019are 3.2 million light vehicles and 140,000
heavy vehicles (source: EVvolumes.com).
LEM delivers strong performance
Sales in the Automotive segment reached
CHF 71.4 million in the financial year 2018/19,
a significant increase of 21.0 %. At constantexchange rates, sales grew by 19.6 %. For thesecond year in a row, sales in our green cars
business exceeded sales in our conventionalcar business, and now accounts for 68.1 %of Automotive revenues. We recorded thestrongest growth in China (+46.8 %), South
Korea (+12.7 %) and Japan (+38.2 %). China
is our largest market with 46.6 % of Automotive sales, up from 38.4 % last year, followedby the US (20.2 %), South Korea (12.7 %) andJapan (12.4 %). EBIT reached CHF 9.9 million, down 8.2 %, while the EBIT margin was
13.9 %, compared with 18.3 % one year ago.
The margin decrease resulted from increased
competitive pressure in the green cars market, new R&D resources, plus a one-off significant provision for unused stock related to a
discontinued product. We offset part of theseeffects with volume growth and efficiency
gains in production and administration.
Conventional cars continue to decline
Year-on-year sales in the conventional cars
business decreased by 11.9 % to CHF 22.8
million. The decline was caused by the ongoing technological shift away from the conventional 12 volt battery and the relatively weak
US market with a reduction in passenger cars
offset by increased demand for SUVs andtrucks. A number of US manufacturers announced plant closures, although President
Trump has asked them to rethink these.

Motor control
The accelerator gives the signal to themotor control to take power fromthe batteries. Reliable sensors are integrated in or to the inverter modules
to provide current signals at very highspeed to assure smooth and jerk-freeacceleration.

CAB500

DHAB V2High voltage
battery

Charger
Controller

HAH3

DC/DC
converter

HSN

Green cars drive our business
Sales in LEM’s green cars business jumpedby 46.7 % to CHF 48.6 million. Our business

23

LEM Annual Review 18 | 19

Automotive segment performanceis well positioned for both traditional hybrids
and electric vehicles. We achieved strong
growth across all important markets. Our
business in Asia, especially in China, South
Korea and Japan is growing fast. We benefit
from our leading market position in China,
where government policy sets an objectiveof 4.5 m green cars by 2025. We see increasing commitment from large European and US
car manufacturers to launch new electric or
hybrid-electric car platforms.
Expanding product portfolio
We continue to refresh our portfolio, offering
customers a broad range of products adaptable to their needs. In many instances weprovide value adding services to OEMs andTier-1 suppliers with customer-specific versions of our products.
Battery management
Battery management for the 12V lead acidbattery is our core product since 2003, although demand has declined due to changes in start-stop applications in standard internal combustion engine (ICE) vehicles.
For start-stop vehicle architectures we areoffering intelligent battery sensors combining a unique know-how on current sensing
technologies together with our expertise
acquired on lead acid battery technologies
over the years.
For the management of high-voltage batteries (BMS HV), the battery disconnecting unit
prevents any unexpected problem related
to high-voltage/high-power powertrain tomaintain the user in safe conditions, while
monitoring the battery pack energy to havea precise estimation of the vehicle range inelectrical mode. Thanks to our unique knowhow on fluxgate technology, with the CAB series we offer sensors with best-in-class accuracy together with ASIL readiness to avoid aredundant sensor.

LEM Annual Review 18 | 19

24

On hall technology, there is a wide offer ofsingle range sensors for high compactness
with integrated busbar and cost effective
solutions. For very high accuracy, we havedeveloped dual range sensors with a dedicated low range to drastically improve offset
performances.
Motor control
Our sensors for power inverter applications
provide flexibility to Tier 1 and original equipment manufacturers (OEMs) in their design,with solutions that can be implemented on
various subsystems such as: gate driverboards, power modules, integrated busbar
and standard busbar mounting.
Charging system
This new product range is offering dedicated technologies to support transfer energy
subsystems from AC to DC and DC to DC withhigh and low voltages applications.
For leakage of current, we are developing
residual current detection (RCD) targetinglatest on-board charger generation increasing power density and decreasing costs with
800V architecture (boost only), vehicle togrid/load (V2G/V2L) and with bidirectional/
uninsulated architecture. RCD sensors areable to detect 6 mA up to 300 mA DC leakage current to protect the system and users
thanks to safety ASIL grade compliancy.
LEM organization – accelerating change
The green cars business is characterized
by accelerated momentum and intensifying
competition. We continued to ramp up production for new products, shift capacities
from Europe to China, increase automationand meet higher cleanliness standards. We
are focused on continuous improvement processes for quality, efficiency and utilization
throughout the total value chain. Our R&D
teams are being strengthened, while knowl-edge transfer continues from Geneva to otherlocations. An important change is the grouping of all Automotive activities under a general manager in both China and Japan.
Outlook
We expect the green cars boom, mainly in
Asia, to continue, and to more than offset
our slowing conventional cars business. Increased consumer acceptance and lower
prices, together with the emerging trends ofautonomous driving, connectivity and dig-itization, will likely further drive demand forelectric vehicles. We see green car initiatives
by European OEMs becoming a reality withnew business to be awarded in 2019. We expect a continued decline in sales for 12V ICE
battery management, offset by strong demand for high voltage products; motor controls will grow significantly in China and Japan; while charging systems with integrated
current sensor products offer the strongest
long-term growth potential.

50 %“China will play a major role in the electrification of the automotive market,
representing 50 % of the annual EV/PHEV
car production by 2028.”
Source: Bloomberg NEF, 201925

LEM Annual Review 18 | 19

Enabling mega trends
2040

The author is Marc Possa
Partner & CEO of VV Vermögensverwaltung AG
and convinced long-term investor in LEM

Mega trends are global economic, socialand demographic shifts that have a major influence on our everyday lives. There seems
to be a finite number of observable mega
trends, the most important ones being environment and energy, mobility, communicationand connectivity, urbanization, aging and lifestyle, and security and regulation. For trends
to be classified as mega trends, they need
to be strong and persistent and have a highimpact on politics, society and the economy.

2030

Keys to innovation success
For mega trends to evolve, enabling technologies have to exist. Thanks to technologicalprogress in the fields of material science,
automation and process technology, mega
trends are initiated and enabled. Due to theircomplex nature, the basis for many kinds ofindustrial progress lies in the co-existenceof a good education system and a well-functioning industrial eco-system. For these toexist, the political and regulatory framework
is decisive. A compulsory school system, followed by the existence of a dual education
setup embedded in world-class academia isthe fruitful foundation for future innovation
success. Paired with the need and mindsetof wanting to innovate, a competitive advantage evolves, allowing progress, innovation
and welfare to develop.

2020

Sustainable economic development
The foundation of an innovation culture historically often lies in the lack of alternatives,provoking a disciplined and stringent focus.
Especially in iteratively deducted trial-and-error approaches, a structured behavioral pattern is required. This then leads to market
leadership, eventually generating the cash
flows to finance research and development,
which then again leads to innovation, societal
welfare and sustainable economic development.

LEM Annual Review 18 | 19

26

Enhancing the electrical eco-system
With the dynamic electrification of the world,
especially in the field of renewable energies(wind, photovoltaic, hydro and energy storage), the precise measurement of electricalcurrent becomes decisive in order to increasesystems’ intelligence and efficiency. LEM
sensors exactly fulfill this vital role throughprecise measurement and subsequent calibration. Many machines, cars or trains would
not work without those sensors. Enabling thecaption and interpretation of electrical current data helps enhance the whole eco-system, improving efficiency and accuracy andtherefore adding value to all involved parties.
In a world where electrification and digitalization are gaining momentum, the understanding, measurement and assessment of electrical flows is very often mission critical.
Swiss leadership
For very good reasons Switzerland is home
to many very successful world champions in
global niches. We have transportation solutions (airplanes, trains and automobiles) thatare safer and more efficient thanks to Swisstechnologies and achievements. In terms ofinnovation, Switzerland remains among theleading countries. Thanks to the appropriate
infrastructure and culture, highly innovatingcompanies continuously manage to havehigh innovation rates, allowing them to systematically improve the offering and value
added to customers. With rising technological complexities, this represents a true asset,
guaranteeing continuous success, welfare
and sustainable prosperity.

27

LEM Annual Review 18 | 19

Trends, strategy andorganization

Mega trends accelerating change
Our growth is driven by mega trends whichgive multiple opportunities to leverage LEM
expertise and provide returns to shareholders. These trends drive demand for sensors,and have been described in the preceding
chapter: renewable energy, energy efficiency, reliable energy, distributed energy, mobility, automation and digitization.

control systems and new vehicle technologies, and large-scale commercializationof Internet of Things and Industrial Internetof Things are among the other factors fuelling the growth of the current sensor market. However, falling average selling prices of sensor components is affecting newmarket entrants and therefore is restraining
the growth of the current sensor market.”

Our strong heritage is Industry applications
where we are market leader and have significant growth potential, while our fastest
growing sector is automotive applications.
Far from being a mature market, the current
sensing applications are undergoing significant mutations, driven by new applications
and technologies.

Technology trends
Ever higher power densities drive new
current sensing technologies
The power density is the amount of power
generated per unit volume of the motor. The
more powerful the motor in a smaller envelope, the higher the power density. Increasing
power density is therefore a critical factor toincrease performance, as space constraints
are present in virtually all industry and automotive applications.

“Increasing use of battery-powered
applications and renewable energy
forms, and growing market for Hall
effect current sensors are among
the key driving factors for thecurrent sensor market growth.”
Report Linker, industry report, April 2019

An April 2019 report on the Current Sensor
Market published by Report Linker states:“The current sensor market is expected to
grow at a CAGR of 8.34 % to reach USD 3.6
billion by 2024 from USD 2.4 billion in 2019.
The increasing use of battery-powered applications and renewable energy forms, andgrowing market for Hall effect current sensors are among the key driving factors forthe current sensor market growth. Moreover, the growth of automotive electronic

LEM Annual Review 18 | 19

28

Two technologies are enabling a step-change
in levels of power density: Silicon Carbide(SiC) and Gallium Nitrite (GaN) based sensors
reduce switching losses and increase switching frequencies, making them very well-suited for industrial applications where performance is key.
The increased demand for small sensors, capable of handling high levels of power density, led to the emergence of integrated current
sensors over the last decade. Integrated current sensors measure the primary current line
directly through surface-mounted integrated circuit (IC) and became a technology ofchoice for industrial and automotive applications thanks to their ability to sense high currents while using a very compact footprint.

Digital is disrupting energy andmobility usages
Smart grid and autonomous driving are two
major disruptions led by digital revolutions
to bring smarter, greener and more efficient
ecosystems. This is creating a lot of data,
communication and the need for artificial Intelligence. At LEM we are developing smarter sensors with data processing, safety with
self-diagnostics, and added value with embedded software to achieve real time computation, which accelerates information transmission and decision making in the system.
The electrification of vehicles opens new
applications to current sensors
By 2028, 50 % of annual car production will
be using hybrid and electric powertrains. In
addition, electric and hybrid vehicles requirea higher number of current sensors than combustion powertrains, spurring an exponential growth for the demand of sensors: fromabout 100m of current phases measured in2018, LEM estimates that the market will growmore than 4x, to reach about 450m in 2028.
LEM believes on-board chargers (OBC), DC
meters and DC/DC converters will play a keyrole in energy distribution and managementof hybrid and electric powertrains. OBCs provide the means to recharge the battery using
an AC socket at home or from a charging station. DC/DC converter translates high voltage
coming from the battery to a lower voltage
which is then used for various on-board applications (A/C, electric power steering, etc.).
DC metering is becoming mandatory in the
EU and the US markets, as regulators wantcustomers to pay only for the power loadof the battery of the vehicle, net of powerline losses. Detecting current leakage is an
important side application for DC metering,
bringing a protection for customers in case ofa malfunction of the charging station.

Ever higher power levels (up to 800V) place
the battery system as the heart of the hybrid
and electric powertrains. Accurate battery
management systems that can measure thestate of charge (SoC) and state of health(SoH), have become increasingly important
to ensure the driver has access to reliable information on the driving range, and that thebattery cells are well maintained to protect
the battery life.
More stringent safety standards pave theway for autonomous driving
Automated driving functions are realizedwith interconnected systems using automated driving assistance systems (ADAS).
Those systems are replacing part of a driver’s
usual decisions keeping
him and others safe fromhazards. To maintain thislevel of safety, ADAS are
implementing functionalsafety defined by the ISO
26262 standard. We are
introducing this standard
to offer the strongest safety functions to our customers using LEM sensors in electrical vehicles
powertrain systems suchas battery, motor or power converters.

Smart grid andautonomous driving
are two major
disruptions led bydigital revolutions
to bring smarter,
greener and more
efficient ecosystems.

Smart grid, a new market for current
sensing solutions
Our energy system is undergoing a radicaltransformation, as millions of electric vehicles
hit the road and terawatts of renewable energy capacity are installed. These changes are
essential to decarbonize our energy systembut are creating significant challenges. First,
wind and solar energy’s intermittent nature
force grid operators to provide flexibility to
the system. Second, the rapid growth of distributed energy resources (DER) is decentral-

29

LEM Annual Review 18 | 19

Trends, strategy and organization

izing the distribution network, increasing thecomplexity of its operation. A smarter grid isthus needed to reliably integrate intermittent
renewable energies and DERs.
LEM provides sensors that measure electricalparameters along the network, allowing grid
operators to monitor, control and automate
the grid operation. LEM offers best-in-classsolutions for the ever-increasing demands ofutilities and equipment manufacturers.

Strategy
The focus of our strategy is on three priorities,
which are reviewed annually by the Board of
Directors. This strategy translates into clearly
defined deliverables whose key performanceindicators are continuously monitored.
Strengthen our technology leadership
We are committed to invest 8 % to 10 % of
our sales in R&D to provide our customers
with innovative products and solutions using
proven and cutting-edge technologies.
We see the emergence of new technical platforms (e.g. EV powertrains) driving the increasing miniaturization of components andfueling the adoption of integrated current
sensors.

New car sales –propulsion share
units in millions

organization, with category managers established close to key supplier markets in Asia
and Europe. The supplier management processes (selection, qualification and development) are continuously improved to bring the
LEM quality standards to the objectives set
above.
We are further progressing on the digitalization of the production lines, with a full retrofit of the manufacturing assets to enable
automatic data collection and treatment. An
additional step towards the automation of
our inbound supply chain activities has been
completed with the introduction of a new
production planning module, which will enable us to increase our production capacity
and increase inventory turnover.

100

8
80

1
4

7%

23%

13

17

49%
29

60

76
40

70
48

20

0

2018

2023

2028

Total: 81

Total: 91

Total: 94

Electric vehicles
Hybrid vehicles
Internal combustion engines
Source: IHS Markit, 2017

LEM Annual Review 18 | 1930

Additionally, we are expanding our capabilities
in embedded software development and field
programmable gate array (FPGA) to develop
the sensors of the future. They will be smarter and include functionalities that expand beyond pure current measurement towards current transmission (e.g. smart grid) and digital
information.
Quality: key to customer satisfaction
We strive to bring the quality mindset to thenext level across all production sites andall functions. Through the deployment of apreventive recurrence strategy on productreturns, we aim for a single-digit 0km ppm
target. To reach this objective, LEM drives anumber of initiatives, including the deployment of an Integrated Product Development
roadmap, improvements of the change management process in development and serial
production and the optimization of the quality
management system.
Drive operational excellence
We have been strengthening our operations
by setting up a global integrated purchasing

Accelerating the organization
To deliver our strategy we can leverage ourstrengths of heritage, market leadership, technical knowledge, a broad portfolio and closeness to our customers.
However, our industry is changing fast andbeing shaped by several technology breakthroughs. So is LEM: we are making the organization more agile to ensure we capture andmanage global growth to 2025.
Talent and capability development
LEM is made of the expertise, talent and leadership of the 1,500 people working relentlessly to bring customers the best solutions. We
are investing resources in talent development
programs and coaching sessions to help talents grow and shape the future LEM.

We are committed to invest
8 % to 10 % of our sales in
R&D to provide our customers
with innovative products andsolutions using proven andcutting-edge technologies.

Leadership and empowerment
Decision making will become increasingly decentralized as capabilities are being deployedat each site in R&D, operations, sales andquality. With these changes, LEM is increasing speed and agility while reducing time-tomarket.
Strategic communications and brandawareness
LEM has a strong heritage and reputation.
The new brand identity revealed with thisAnnual Review is the starting point of a refreshed LEM, proud of its legacy, focusedon delivering the best to our customers today and positive about the future. A company
engaged with all its stakeholders, playing its
part in shaping more sustainable practices
across society – life, energy, motion.

Collaborative organization
Our organization is evolving towards a decentralized model where the headquarters are
responsible for strategy, setting standards,
innovation and coordination.

31

LEM Annual Review 18 | 19

R&D focus

Increased investment for future growth
In 2018/19 we continued to increase our investment in R&D to assure long-term growth.
Four main trends drive our investments: theincrease in electromobility especially in Asia;
measurement of energy flows in smart grids;
requests from Automotive customers forfunctional safety through third-party certification; and demand for tailored solutions inhigh volume applications.
Our investments are leading us from a traditional, electromagnetic sensors company
into a diversified business of various integration levels. Unlike a pure player, our R&D
team needs a diversified skillset to deliver thebest product. It is to our advantage that we
produce for customers in the industry and automotive segments, which allows us to leverage synergies to produce larger systems,
modules and semiconductors.
Development across sites, teams andsegments
We increased our internal R&D team by morethan 16 % and hired a total of 21 engineers. We
also used contract R&D resources to support
projects and as a result, R&D investments increased from CHF 21.3 million in 2017/18 to
CHF 27.6 million in 2018/19.
In Lyon we specialize in smart grid, traction
and DC meters; this year we completed theembedded software and test teams with experienced engineers. In Geneva we focus on
products going into drives, renewables, highprecision and semiconductors, and during
the year we formed a semiconductors team
to focus on integrated current sensors including design, supply chain and testing.
R&D teams in both Geneva and Lyon focus
on new technologies, such as embedded
software and testing, predevelopment oftechnologies and innovative applications of

LEM Annual Review 18 | 19

32

our products. Therefore, we continue to havea dedicated innovation team on both sites,
which is working with universities and technical institutions and has been increased by
two engineers in Geneva.
In Japan we set up a new R&D team for Automotive applications, while in Beijing and
Sofia we strengthened the local management teams and our aim is to further expand
those teams in 2019/20. In the Automotive
segment our goal was to give the China teammore responsibility for its local market to enhance closeness to customers.
Technical focus and product launches
We are running product projects in the areasof battery management systems, integrated
current sensors for renewable energy applications, drives and traction. Our progress inbattery management systems was awarded
with a delivery order by a major truck manufacturer. We have made significant investments in semiconductor(-based) products,
such as ASICS and HMSR which is an integrated current sensor. We also increased ourknowledge on semiconductor packaging,
supply chain and testing. In the area of smart
grid, we are working on products going beyond pure sensors, such as our digital integrator product, which works with our Rogowski
coils. We shall also be launching a new DC
meter for Electric Vehicle Fast Charging stations, which is a good example of our progress in embedded software. Our efforts wererecognized by the granting of 19 utility and 24
design patents.

Product launches
Product
launches 2018/19
2018/19
Products

Segment

Application

LXSR

Industry

Solar

LDSR

Industry

Residual current

IN 1000-S

Industry

High precision

HO PW series

Industry

Drives, UPS,

HO SW series

Industry

Drives, UPS,
Welding supply

HO NPW series

Industry

Drives, UPS

CAB 500 series

Automotive

Battery
management

HAH3 DR S07

Automotive

Inverterapplications

OutlookIn 2019/20 we will continue to increase investments in our R&D capabilities. In Automotive we will complete the team in Japanto target new customers, and in China we will
set up an innovation team. In summer 2019
we will launch the HBCT and CAB 500 SF for
battery management. We will also see growthin the development of ASICs and semiconductor-based integrated current sensor products. A high number of product launches will
be for smart grid, such as the DC meter, outdoor Rogowski coils and integrators.

LXSR

LDSR series

Closed loop multi-range
current sensors for motor
drives, power supplies andsolar inverters. Galvanic
separation between primaryand secondary circuit. Very
low offset drift, unipolar
supply voltage and compact
design.

Proprietary ASIC for closedloop Hall effect technology.
Measures leakage currentof up to 2 KHz frequency.
Alternative to expensive
fluxgate solutions. Used insolar inverters on low power
1 and 3 phases.

CAB 500 series

HAH3 DR S07

Now rated from –500A up
to +500A, fluxgate CAB 500
current sensors combine
industry-leading accuracy withultra-low offset and highspeed CAN output with
programmable bus.

State-of-the-art LEM Hall
ASIC design, co-developedwith Infineon. Current range
per phase up to +/– 1200A.
High precision and low
offset, no side effects
between phase. Automotive
qualified. Several busbar
and bracket versions.

Our significant investments in R&D overrecent years have begun to bear fruit. In
2018/19 we launched six products in Industry
and two in Automotive.

33

LEM Annual Review 18 | 19

Board of Directors

François Gabella

Ilan Cohen

Werner C. Weber

Andreas Hürlimann

Ueli Wampfler

Ulrich J. Looser

Member of the Board of Directors

Member of the Board of Directors,
Member of the Strategy Committee

Member of the Board of Directors

Chairman of the Board of Directors,
Chairman of the Strategy Committee,
Member of the Nomination andCompensation Committee

Member of the Board of Directors,
Chairman of the Audit and Risk
Committee

Member of the Board of Directors,
Chairman of the Nomination andCompensation Committee,
Member of the Audit and Risk Committee

LEM Annual Review 18 | 19

34

35

LEM Annual Review 18 | 19

Talent and values

We are developing and recruiting the best
global talent with new competencies to deliver the growth potential of the company.
LEM offers people a significant purpose andopportunity to make an impact on society,working at the forefront of mega trends suchas renewable energy, mobility and sustainability. We are a high quality global employer,
human-sized with a collaborative culture. As
market leader in several applications of electrical measurement, our employees enjoy intellectual challenges, diverse pathways andglobal career opportunities.
New talent
We are continually looking for new talent who
wish to make a difference and have a concrete impact on society. We offer a multicultural, human-focused working environment
allowing self-fulfillment in a growing and challenging context. We are focused on hiringcore competencies in new markets such as
smart grid, semiconductors and embedded
software as well as in the fastest growing areaof e-mobility. In additon to technical competences, new recruits should demonstratequalities such as leadership, entrepreneurship, empowerment, accountability, continuous improvement mindset, innovation andambition.
Development of competencies
A committed workforce is essential for LEM’s
lasting success. To this end, we support ouremployees to attend regular job-specifictraining and develop their personal skills. We
invest 1.5 % (unchanged) of total group salarycosts for internal courses and participation inexternal training. A crucial element is our internal talent inventory to define the development
wishes of our employees and increase internal
succession bench strength. We are focusedon developing internal talents through job rotation, global projects, international mobility
and promotion. Technical competencies for

LEM Annual Review 18 | 1936

new products and applications and leadership development were the primary focus. In
2018/19 we continued with the specific leadership development programs in Bulgaria andChina. Leadership development programs in
Switzerland focused on change managementand delegating responsibilities. These efforts
were complemented by a specific increase oftechnical competencies such as key accountmanagement and Six Sigma.

Workforceby activity

Average lengthof service

1’477 total employees

1’385 permanent employees

8%

We continue to enhance health and safety at
the workplace. The most important measures
include systematic health and safety training
for newcomers, employee wellbeing programs for the prevention of excessive stressat the workplace, annual evacuation trainings
and signage in all areas. All sites have a clear
evacuation plan in place. We perform regular internal and external audits to analyze theeffectiveness of the measures and the development of improvements.

8

12 %

6.0

6

Our annual evaluation shows that job content,
work climate/team and work-life balance are
the most important drivers of employee engagement. These drivers remained stable
over the past years.
Equal opportunities
LEM provides equal opportunity to all qualified
individuals. The share of female employees is
54 % in the overall workforce. However, given
the historically high share of engineering positions in product development, sales & marketing and management, the share of female
employees in the non-production related activities is 34 %. We actively seek female candidates in order to increase their share in thehigher qualification positions, and there has
been significant progress in markets such as
China where many engineering graduates are
women.

9.9

10

16 %

6.6

6.8

4
2

64 %
0
Years

Operations
Admin & Logistics
R&D
Sales & Marketing

Operations
Admin & Logistics
R&D
Sales & Marketing

Employee analysis
31. 3.2019

31.3.2018

Permanent employees

1’385

1’382

Temporary employees

48

104

Trainees

44

42

Total

1’477

1’527

FTE

Women in overall workforce

54 %

53 %

Women in non-production related activities

34 %

33 %

Women in management positions

24 %

22 %

37

LEM Annual Review 18 | 19

Talent and values

Executive Committee

Strong engagement
Every two years we conduct an external employee engagement survey. The latest in 2018
(response rate of 85 %) showed significantly higher results than an external benchmark
and also improved from the last survey in2016. All engagement dimensions increased,in particular alignment with strategy, customer focus and strong employer brand perception. There is room for further improvementin terms of organizational effectiveness, andwe are working on this (e.g. project supply
chain, management development, focus ontrust and accountability). Results were com-municated internally with groups, activities
and locations defined to execute specific action plans.

Motivation factors
for employees

Work climate/team1

Job content

2Work climate/team3

Empowerment

As a result of last year’s employee survey, we
improved internal communications, particularly when it comes to important, strategic
decisions. In 2018/19 we held regular town
hall meetings at all sites during executive
management visits as well as a monthly leadership lunch with the CEO.

Frank Rehfeld
Chief Executive Officer

Employee rating

Satisfactory
16 %Andrea Borla
Chief Financial Officer

Excellent
39 %

Good
45 %

Rainer Bos
Senior Vice President Automotive

LEM Annual Review 18 | 19

38

39

LEM Annual Review 18 | 19

Talent and values

LEM Annual Review 18 | 19

40

41

LEM Annual Review 18 | 19

Our core values

Responsibility

We believe that sustainable and ethical practices create long-term value for all key stakeholders in society and assure the longevity ofbusinesses. There is an increasing demand
for such an approach, which is why LEM
conducts its business within a value system
based on various principles and standards.
LEM Code of Conduct
The LEM Code of Conduct (CoC) is our key
document. It reflects the United Nations Global Compact, global environmental standards
and our core values. It is a binding document
for employees and business partners, such as
suppliers and consultants, whose compliance
we regularly audit. Every LEM employee receives e-learning training on the CoC, including instructions and case studies, and signs it.
United Nations Global Compact
Since 2006 we adhere to the Ten Principlesof the United Nations Global Compact, which
are driving global action to achieve the Sustainable Development Goals by 2030. These
principles, which relate to human rights, labor, environment and anticorruption, areembedded in every aspect of LEM, fromour strategy to our actions. As we do every
year, in 2019 we provided an update on our
progress to the United
Nations which is available on our website. In
addition, we follow thebest practice policies
Ethics Human rights Business practicesof the Universal Declaration of Human Rights
United Nations Global Compact
and the UK Bribery Act.

Environmental standards
The trends to sustainable energy sources andelectromobility are two of LEM’s key growth
drivers. Our accurate sensing solutions giveour customers a competitive edge in energy
management solutions. For example, LEM
sensors’ high accuracy directly impacts thebattery pack size of an electric or hybrid-electric car, and hence improves car weight andenergy consumption.
All our production sites are ISO 14001:2015
certified, an environmental certification
which we renew regularly. Our production
activities are compliant with REACH (European Regulation for Registration, Evaluation,
Authorization and Restriction of Chemicals),
RoHS (Restriction of Hazardous Substances)
as well as conflict minerals reporting and obligations. LEM regularly publishes updates to
its standards and reporting on our website.
All LEM manufacturing sites apply waste sorting and treatment solutions. For each new
product, we develop an environmental profile
before launch, which includes recyclability
rate and material saving compared to previous or equivalent models.

LEM Code of Conduct– UN Sustainable Development Goals
Environmental standards– Preserving the environment– Protecting human health– Utilizing natural resources rationally

43

LEM Annual Review 18 | 19

Information for investors

Information for investors

Number of registered shareholders
31.3.2019

31.3.2018

1– 499ContactAndrea Borla (CFO)
Phone: +41 22 706 12 50
E-mail: investor@lem.com

1’153

933

500 – 4’999

50

52

5’000 – 49’999

7

7

50’000 and more

4

4

1’214

996

Total

in CHF

LEHN
SMI

2000

1600

Shareholders by category
31.3.2019

31.3.2018

Institutional shareholders

48.1

49.4

Private individuals

26.7

26.3

LEM employees, managers and board

6.5

6.4

In %

1200

Treasury shares

0.1

0.1

Nonregistered shares

18.6

17.8

Total

100.0

100.0

LEHN

Listing

SIX Swiss Exchange

Nominal value

CHF 0.50

ISIN

CH0022427626

Swiss Security Number (Valor)

2 242 762

LEM share
In number of shares, CHF

Number of sharesYear high 1

2018/192017/18

1’140’000

1’140’000

1’772

1’828

1

920

915

Year-end 1

1’280

1’590

878

828

45.97

47.76 3

Average daily trading ­volume (shares)1
Earnings per share
Ordinary dividend per share

2Market capitalization as per 31 March 1 (in CHF millions)1

Source: SIX

2 Proposal of the Board of Directors to the Annual General Meeting of Shareholders for 2018/19
3 Restated

44

400

4.5.132.11.132.5.142.11.142.5.152.11.15

2.5.162.11.16

2.5.172.11.172.5.182.11.18

30.4.19

Source: www.six-group.com

SymbolYear low

800

0Share information

LEM Annual Review 18 | 19

Share price development LEM HOLDING SA (LEHN)
compared to SMI

42

40

1’459

1’813

Financial calendar
1 April 2019 to 31 March 2020
27 June 2019
2 July 2019
4 July 201930 July 20195 November 201931 January 2020
19 May 2020
25 June 2020
30 June 2020
2 July 2020

Annual General Meeting for the financial year 2018/19
Université de Fribourg, bvd. de Pérolles
Dividend ex-date
Dividend payment date
First-quarter results 2019/20
Half-year results 2019/20
Third-quarter results 2019/20
Year-end results 2019/20
Annual General Meeting for the financial year 2019/20
Dividend ex-date
Dividend payment date45

LEM Annual Review 18 | 19L eading the world in electricalmeasurement, LEM engineers
the best solutions for energy andmobility, ensuring that ourcustomers’ systems are optimized,
reliable and safe.

Copyright© 2019 LEM HOLDING SA,
Fribourg

LEM Annual Review 18 | 19

46

Concept and text
LEM, Fribourg
Cabinet Privé deConseils SA, Genève
SNK Identities AG, Zurich

DesignSNK Identities AG, Zurich

PhotosMara Truog, Zurich
Getty Images

Printing
Druckprodukt, Zurich

LEM HOLDING SA
Avenue Beauregard 1
1700 Freiburg/Fribourg
Switzerland
www.lem.com

Annual Review 18 | 19