Ad hoc announcement pursuant to Art. 53 LR

LEM with significant sales decline in Q1 2024/25 – first signs ofstabilization in China
Geneva, 26 July 2024 – LEM (SIX: LEHN), a global leader in electrical measurement for automation,e-mobility, renewable energy, power network and railroad applications, announces its results for the firstquarter 2024/25 (April-June):•Sales declined 27.9% to CHF 81.0 million (Q1 2023/24: CHF 112.3 million); at constant exchange rates,
the decrease was 26.9%.

•LEM recorded significant sales declines in the EMEA region of 32.3%, in Rest of Asia of 33.8% and in
the Americas of 28.8%. China was down 20.3% year-on-year but showed first signs of stabilization due
to improved bookings in the Automotive and Renewable Energy businesses.

•Compared to the previous year's level, bookings decreased to CHF 65.1 million (CHF 81.0 million); thebook-to-bill ratio was 0.80. Nevertheless, bookings increased over the last three quarters.

•EBIT decreased by 71.4% to CHF 7.5 million (CHF 26.2 million); the EBIT margin stood at 9.3%. Netprofit fell to CHF 4.8 million, resulting in a net profit margin of 5.9% (CHF 20.5 million; 18.3%).

•LEM expects business in Q2 2024/25 to be on a similar level as in Q1 2024/25. Based on feedback
from customers and projects wins, sales should pick up during the second half of the financial year.

Frank Rehfeld, Chief Executive Officer, said: "LEM operates in markets where the investment climate
has deteriorated significantly due to the economic downturn. This trend intensified with the ongoing
reduction in inventories. Structurally, a further shift of the renewable energy and automotive industries
towards Asia can be observed, which is intensifying price competition in all regions. Thanks to the costinitiatives introduced and the acceleration of the innovation process with joint developments with leading
customers, LEM won important projects in various industries and markets that will become visible in ourfuture sales. We were able to further develop our business and will continue to benefit from fundamental,
environmentally friendly trends in the increasingly competitive areas of electrification, renewable energies
and e-mobility."
Andrea Borla, Chief Financial Officer, commented: "The first quarter, with a decrease in sales of 27.9%
and an EBIT margin of 9.3%, is the worst result in the recent history of LEM. Sentiment has not yet
improved in our end markets, but the various measures introduced have shown initial measurable success.
Furthermore, the sequential increase in incoming orders over the last three quarters is encouraging, albeit
at a low level."

LEM Holding SA

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Sales by businessin CHF millions
Business
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 2024/25

Q1 2023/24

Change23.6

34.3-31.1%

19.9

27.4-27.2%

14.1
12.2

21.0
15.6

-32.9%-21.5%

11.1
81.0

14.2
112.3

-21.3%-27.9%

Automation
The business contracted in a difficult economic environment and was also slowed down by the ongoing
reduction in stock levels as well as the rescheduling of certain orders. In China, where sales initially started
to weaken during the current cycle, there were first signs of stabilization.
Automotive
The Automotive business showed weak sales momentum overall. In China, the most important market, asignificant part of our business depends on exports, and this had been negatively impacted. However, LEM
was able to grow in line with the domestic market thanks to the cost initiatives implemented and theincreased customer focus. LEM won new business in China, e.g. from a leading EV manufacturer, andregained market share. Demand in the Rest of Asia region suffered from weak demand and high inventory
levels. Europe performed well with new projects for battery management being ramped up.
Renewable Energy
The business recorded a decline across the board, with signs of stabilization in China due to stable
domestic demand and the reduction of inventories at manufacturers and distributors. LEM was able tomaintain its market share due to better customer proximity and competitive pricing. Thanks to an
accelerated innovation process and co-developments with customers, important projects were won. The
remaining regions were characterized by high inventories and project postponements.
Energy Distribution & High Precision
The DC meter business for charging stations recorded a significant decrease, driven by a slowdown of theinstallation speed and due to some of LEM customers losing market share in Europe. The development of
the US charging infrastructure also stagnated. Only in China did LEM see an increased demand for DC
meters from manufacturers of charging stations for export to Europe and the USA. Products for smart grids
developed more cautiously due to a generally lower level of investment.
TrackThe business, which is characterized by long investment cycles, has returned to its usual growth path. It
was still supported by the regular retrofit business for the replacement of energy meters for locomotives inseveral smaller EU countries, with more to follow. Track also recorded stable growth in China and India.

LEM Holding SA

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Sales by region
in CHF millions
RegionChina
Rest of Asia
EMEA
AmericasQ1 2024/25

Q1 2023/24

Change

31.8
13.6

39.8
20.5

-20.3%-33.8%

26.7

39.4-32.3%

9.0

12.6-28.8%

81.0

112.3

-27.9%Scope
Japan, South Korea,India, South-East Asia
Europe, Middle East &Africa
NAFTA & Latin
America

Total

China
The environment in China showed signs of stabilization in the first quarter of 2024/25, particularly in theAutomation and Renewable Energies businesses. Sales growth compared to Q4 2023/24 reached 40%.
Thanks to the measures taken to improve flexibility, cost efficiency and customer proximity, LEM was able
to acquire promising new customers and projects in the automotive, solar and energy distribution
industries, which will support growth in the coming quarters. Track also performed well.
Rest of Asia
The other Asian markets, particularly Korea and Japan, experienced a broad-based downturn due to thegeneral economic weakness, weak exports and high inventory levels. The Indian market was stable. The
new production site in Penang enables LEM to supply the Asian markets as well as the USA and Europe
from Asia and has brought further production lines into operation.
EMEA
Europe experienced a broad-based slowdown in demand, which was exacerbated in part by highinventories in the DC meter and solar industries and in the automation business in general. Orders werepostponed and some canceled in those areas. In the Automotive segment, starting from a low base, LEM
was able to benefit from the start of production for major orders and acquired two large orders for battery
management systems. Overall, there was a high level of design-in activity with customers for new platforms
in all business areas.
Americas
The Americas region was not immune to the generally subdued investment activity that has persisted since
the second quarter of 2023/24. This led to order postponements in the Automation business and increasing
price pressure in the Automotive business. On a positive note, the region will benefit from a large order forbattery management from a European car manufacturer in the second half of the year.

LEM Holding SAPage 3/6

Profitability under pressure
Gross profit for the first quarter of 2024/25 dropped by 30.5% to CHF 36.0 million (CHF 51.8 million). The
gross profit margin decreased from 46.1% to 44.4%. The main reasons were a negative product andgeographical mix and the under absorption of production fixed costs due to the lower volume.
SG&A costs increased by 7.6% to CHF 18.6 million (CHF 17.3 million). This increase was due to LEM's
investments in digitalization, such as the go live of the new ERP system in several sites, and build-up costs
for the new production facility in Malaysia. LEM continued its investment in future applications. R&D costs
increased by 19.2% to CHF 9.9 million (CHF 8.3 million) due to new and expanded R&D centers.
EBIT decreased by 71.4% to CHF 7.5 million (CHF 26.2 million); the EBIT margin stood at 9.3%. Net profit
fell to CHF 4.8 million, resulting in a net profit margin of 5.9% (CHF 20.5 million; 18.3%).
Outlook
LEM expects business in Q2 2024/25 to be on a similar level as in Q1 2024/25. Based on feedback fromcustomers and projects wins, sales should pick up during the second half of the financial year.

Financial calendar
The financial year runs from 1 April to 31 March
11 November 2024 Half year results 2024/25
7 February 2025
9 months results 2024/25
27 May 2025
Full year results 2024/25
26 June 2025
Annual General Meeting for the financial year 2024/25
1 July 2025Dividend ex-date
3 July 2025
Dividend payment date
LEM – Life Energy Motion
A leading company in electrical measurement, LEM engineers the best solutions for energy and mobility,ensuring that our customers’ systems are optimized, reliable and safe.
Our 1’800 people in 17 countries transform technology potential into powerful answers. We develop andrecruit 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 4/6

Appendix
Consolidated income statement
April to June
2024/252023/24

ChangeSales

80’963112’344-27.9%

Cost of goods sold(44’980)(60’593)

Gross profit

35’98451’752Gross profit margin (in %)

44.4%

46.1%

Sales expenses(6’783)(7’012)Administration expenses(11’792)(10’257)

Research & development expenses(9’928)(8’327)

118

Operating profit

7’491

26’164

Operating profit margin (in %)

9.3%

23.3%

Financial expenses

(668)

(579)

Financial income

73104

Foreign currency exchange effect(1’259)(1’209)Profit before taxes

5’638

24’481

Income taxes(862)(3’936)

Net profit

4’776

20’544

Net profit margin (in %)

5.9%

18.3%

In CHF thousands

Other income

LEM Holding SA-30.5%-71.4%-77.0%-76.8%

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Key Figures
2024/25in CHF millions

Orders received

Q1Total LEM

65.1

Book-to-bill ratio

Q1Total LEM

0.80

Q2

Q2

Q3

Q3

Q4

Q4

FYFY

2023/24

Change

Q1

Q2

Q3

Q4

FY

Q1 - Q1 Q1 - Q4

81.0

60.5

46.4

55.3

243.3

-19.7% +17.7%

Q1

Q2

Q3

Q4

FY

Q1 - Q1 Q1 - Q4

0.72

0.55

0.50

0.620.60+11.5% +29.7%
Q1 - Q1 Q1 - Q4

Sales

Q1

Q1

Q2

Q3

Q4

FYAutomation

23.6

34.3

32.6

27.525.6

120.0-31.1%

Automotive

19.9

27.4

26.0

23.7

21.5

98.6

-27.2%-7.4%

Renewable Energy

14.1

21.0

19.8

16.4

13.5

70.8

-32.9%+4.4%

Energy Distribution & High Precision

12.2

15.6

17.0

12.5

15.8

60.9

-21.5%-23.0%

Track

11.1

14.2

15.6

13.2

12.7

55.5

-21.3%-12.1%

Total LEM

81.0

112.3

111.0

93.3

89.2

405.8

-27.9%

-9.2%

EBIT

Q1

Total LEM

7.5

Net profit of the period

Q1

Total LEM

4.8

LEM Holding SA

Q2

Q2

Q2

Q3

Q3

Q3

Q4

Q4

Q4FYFYFYQ1Q2Q3Q4

FY26.225.5

17.6

11.8

81.1

Q1Q2Q3Q4

FY20.522.9

12.09.965.3-8.0%

Q1 - Q1 Q1 - Q4
-71.4%-36.3%

Q1 - Q1 Q1 - Q4
-76.8%-51.7%

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