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

LEM announces results for Q1 2022/23: solid sales
performance, increased order book and robust profitability
Geneva, Switzerland, 28 July 2022 – LEM (SIX: LEHN), a leading global company in electricalmeasurement for renewable energy, automation, power network and e-mobility applications,announces first quarter results for 2022/23 (April-June) compared to 2021/22:•Bookings increased by 8.0% to CHF 158.1 million (CHF 146.4 million)•Sales decreased by 2.7% to CHF 90.7 million (CHF 93.3 million); at constant exchange rates, sales
decreased by 2.3%•

The company benefits from a diverse global distribution of sales, led by China and EMEA:– China CHF 37.6 m (41.5 % of total)– Rest-of-Asia CHF 15.1 m (16.6 % of total)– EMEA CHF 28.0 m (30.8% of total)– Americas 10.1 m (11.1 % of total)•

R&D investments of CHF 8.5 million (CHF 7.6 million), or 9.4% of sales•

EBIT decreased by 8.2% to CHF 19.5 million (CHF 21.2 million); the EBIT margin declined to 21.5%(22.7%)•Net profit for the period was down by 15.1% at CHF 14.7 million (CHF 17.3 million)

Frank Rehfeld, Chief Executive Officer, said: “We are pleased with our top-line and bottom-line
performance this quarter, which was achieved despite the significant lockdowns in Shanghai andcontinued global supply chain issues. Sales improved notably in our Automotive and Energy
Distribution/High Precision businesses. China performed better than expected, while the Americas is
now on an upward trajectory thanks to the adoption of electric vehicles and its associated infrastructure.
We welcome Dr. Verena Vescoli who has been appointed as Chief Technology Officer and as amember of the Executive Committee with effect from 01 November. In this new role for LEM, she will
drive innovation, define the technology roadmap and standards for LEM, steer the worldwide R&D
organization of around 200 employees, and manage external development resources and relationships
with strategic partners.”
Andrea Borla, Chief Financial Officer, remarked: “Profitability remains robust, enabling us tocontinue investing in talent and R&D programs. Our global order book remains very strong, as ourcustomers continue to commit orders over longer time horizons. However, it is frustrating that wecannot fulfil many requests due to supplier constraints. This leads us to remain cautious about oursales momentum, bearing in mind the risks of further lockdowns and the prospect of a globalrecession.”

LEM Holding SA

Page 1/5

Performance by businesses
in CHF millions
Businesses
Automation
Automotive
Renewable Energy
Energy Distribution& High Precision
TrackTotal

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

2022/23Q1

2021/22
Q1

Change

30.5

33.3

-8.5%

21.8

20.1

+8.4%

15.4
13.8

17.0
12.4

-9.2%
+11.2%

9.3
90.7

10.5
93.3

-11.8%-2.7%

Automation
Sales were impacted negatively by continued supply chain issues, and the lockdowns in Shanghai inparticular. This business is mainly driven by the manufacturing investment cycle and there is still gooddemand for small and medium power applications, including tooling machines and HVAC (Heating,Ventilation, and Air Conditioning) as well as end-consumer products, such as heat pumps. We continue
to receive very positive feedback about our new product family of ICSs for small drives and robotics.
Automotive
The fundamental demand for EV solutions continues, and our bookings remain significantly higher than
the rate at which we can deliver products. The lockdowns in Shanghai and general supply chain
shortages impacted all our portfolio across battery management, motor control and charging system.
New sector players in China continue to outperform the more established OEMs.
Renewable Energy
Sales were impacted negatively by continued supply chain issues, and the lockdowns in Shanghai inparticular. Fundamentally the future prospects for this business are strong, due to government policies
and commercial investment, with increasing concerns about dependency on fossil fuels.
Energy Distribution & High Precision
The infrastructure investment for e-mobility is driving the successful rollout of our new DC meter andwe are encouraged by growing customer interest. Demand in the test and measurement sector forbatteries and EVs as well as medical equipment increased sales of our High Precision sensors. Our
most recent product line, the IN family, is being well received.
Track
Our Traction business, with its project-based long investment horizons, has been impacted by supply
chain issues. However, the order book remains strong.

LEM Holding SA

Page 2/5

Performance by regionsin CHF millions
Regions
China
Rest-of-Asia
EMEA
Americas2022/23Q1

2021/22
Q1

Change37.6
15.1

36.5
16.7

+3.0%
-9.6%

28.0

31.7

-11.7%

10.1

8.4+19.8%

90.7

93.3

-2.7%

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

TotalChina
Overall sales performance (+3% in reported Swiss francs) was better than expected, despite the major
impact on supply chains from the Covid lockdowns in Shanghai during April and May. The EV market
both domestically and for export are still forecast to grow significantly. The Renewable Energy business
continues to benefit from domestic investment and from the shift to CO2 neutral policies in manycountries – Chinese solar inverter companies account for 80% of global supply. The Automation
business has cooled down recently. The order book is still at record levels, and the biggest challenge
remains that of managing the supply chain and allocating delivered products across different
customers. The risk of further lockdowns remains.
Rest-of-Asia
Supply chain problems were mainly behind the 9.6% decline in sales across the region. Japan
performed well in both the Automotive and Automation businesses, although reported sales wereimpacted by the weak Yen. South Korea was down in the Automotive business, while India wasadversely hit by supply problems for the Traction business.
EMEA
Sales were adversely impacted by supply chain issues for the Renewable Energy business and by ourdecision to cease all operations in Russia during April. There was also a switch in the production of
our metering applications to our new headquarters in Geneva, which needed some time to ramp-up
during the quarter. The DC meter product is being successfully rolled out from Germany acrossWestern Europe.
AmericasThis quarter’s strong performance (+19.8%) reflects the bottoming out of the transition from the old
12V battery products to our range of products for the EV market which is beginning to accelerate.
Nevertheless, we could have sold more, and remain hampered by supplier constraints. Our order bookis robust, based on Automation, Renewable Energy and smart grid applications, plus we are now
designed-in with several key players for the upcoming roll out of our DC meter in the US.
Profitability remains robust
Gross profit was up by 1.5% at CHF 43.3 million (CHF 42.7 million), while the gross margin improved
again to 47.7%. This is 200 basis points better than in the prior year, due mainly to a better productmix and the impact of price increases.
SG&A costs were up by 9.9% to CHF 15.3 million (CHF 13.9 million) and accounted for 16.9% of sales(14.9%). This increase reflects external consulting support for several key initiatives and investmentsin the new headquarters in Geneva. We continue with our long-term investment in future applications
and in additional talent, with R&D up in absolute terms by 12.1% to CHF 8.5 million (CHF 7.6 million),or 9.4% of sales (8.1%).

LEM Holding SA

Page 3/5EBIT for this quarter declined by 8.2% to CHF 19.5 million from CHF 21.2 million, mainly due to theincreased SG&A costs and investment in R&D. Our reported EBIT margin was down at 21.5%
compared with 22.7%.
The negative impact of foreign exchange translations on the quarter was CHF 1.0 million, up from CHF
0.2 million last year, mainly due to the Euro depreciation. The Group tax expenses of CHF 3.5 million
represent a tax rate of 19.3%.
Net profit for the quarter was CHF 14.7 million, down 15.1% from CHF 17.3 million last year, reflecting
the factors which drove EBIT lower. This quarter’s net profit margin thereby decreased to 16.2%
compared with 18.5%.
Changes in Executive Committee
We are pleased to advise the appointment of Dr. Verena Vescoli as Chief Technology Officer, who will
join the company and become a member of the Executive Committee on 01 November. Verena brings
over 20 years of experience in leading R&D teams across industry and academia. She previously
worked for ams OSRAM AG, a global leader in optical solutions headquartered in Austria andGermany, and for AVL List GmbH, specialized in the development, simulation and testing of powertrainsystems. Dr. Vescoli holds a Ph.D. in Solid State Physics from ETH Zürich, a Master of Science inPhysics from the University of Franche-Comté, France, and a Bachelor of Science in Physics from Karl
Franzens University and Technical University of Graz, Austria.
It is with regret that we announce the departure of Rebecca Cullinan from LEM at the end of September.
Rebecca held the role of Senior Vice President Industry from 2019 to 2022 and more recently that ofSVP Asia and Operations. We wish her well in her new endeavours. In the ad-interim her
responsibilities on the Executive Committee will be shared by Andrea Borla and Rodolphe Boschet.
Financial calendar
The financial year runs from 1 April to 31 March
8 November 2022 Half year results 2022/23 and Capital Markets Day at new HQ in Geneva
6 February 2023
9 months results 2022/23
25 May 2023
Full year results 2022/23
29 June 2023
Annual General Meeting of Shareholders for the financial year 2022/23
4 July 2023
Dividend ex-date
6 July 2023
Dividend payment date
LEM – Life Energy Motion
A leading company in electrical measurement, LEM engineers the best solutions for energy andmobility, ensuring that our customers’ systems are optimized, reliable and safe.
Our 1,600 people in over 15 countries transform technology potential into powerful answers. We
develop and recruit the best global talent, working at the forefront of mega trends such as renewableenergy, mobility, automation and digitization.
With innovative electrical solutions, we are helping our customers and society accelerate the transition
to a sustainable future.
Listed on the SIX Swiss Exchange since 1986, the company’s ticker symbol is LEHN.
www.lem.com
Contact: Investment community
Andrea Borla, Chief Financial Officer
Phone: +41 22 706 1250
Email: investor@lem.com

LEM Holding SA

Contact: Media
Cabinet Privé de Conseils s.a. (CPC)
Nick Miles: miles@cpc-pr.com, mobile: +41 79 678 76 26
Michael Füglister: fuglister@cpc-pr.com, mobile: +41 78 839 07 62

Page 4/5

Appendix
Consolidated income statement
April to June
2022/23

In CHF thousands

2021/22

Change-2.7%

Sales

90'72393'272

Cost of goods sold(47'451)(50'619)

Gross margin

43'27142'652Gross margin (in %)

47.7%

45.7%

Sales expense(6'673)(6'956)

Administration expense(8'629)(6'969)Research & development expense(8'510)(7'588)(0)(0)

Other expense
Other income

2577

EBIT

19'48421'216

EBIT margin (in %)

21.5%

22.7%

Financial expense

(325)

(104)

Financial income

63141

Foreign exchange effect(1'024)(205)

Profit before taxes

18'19821'048

Income taxes(3'517)(3'761)

Net profit of the period

14'681

17'287

Net profit margin (in %)

16.2%

18.5%

+1.5%

-8.2%

-13.5%-15.1%Key Figures
2022/23In CHF millions

Orders received

Q1Total LEM

Q2Q3Q4FY

158.1

Book-to-bill ratio

Q1Total LEM

1.74

Q2

Q3Q4

FY

136.7

139.5

576.4+8.0%+13.3%

Q1

Q2

Q3

Q4FY

Q1 - Q1 Q1 - Q4

1.57

1.70

1.49

1.42

1.54+11.0%

Q1 - Q1 Q1 - Q4+22.3%

Q1

Q1

Q2

Q3

Q4

FY

33.3

32.1

31.2

33.7

130.3

-8.5%

-9.6%

Automotive

21.8

20.1

20.0

22.5

23.3

85.8

+8.4%

-6.4%

Renewable Energy

15.4

17.0

16.7

15.7

16.5

66.0

-9.2%

-6.5%

Energy Distribution & High Precision

13.8

12.4

10.7

12.2

13.2

48.6

+11.2%

+4.5%

Track

9.3

10.5

10.910.2

11.3

42.8

-11.8%-17.8%

Total LEM

90.7

93.3

90.4

91.8

97.9

373.4

-2.7%

-7.4%

Q1

Net profit of the period

Q1

Total LEM

14.7

LEM Holding SA

Q2

Q2

Q3

Q3

Q4

Q4

FY

Q2
153.7

30.5

19.5

Q4

FY

Q1 - Q1 Q1 - Q4

Q1
146.4

Automation

Total LEM

Q3

Q4

Change

Sales

EBIT

Q2

Q3

2021/22

FY

FY

Q1

Q2

Q3

Q4

FY

21.2

20.9

22.024.288.4

Q1 - Q1 Q1 - Q4
-8.2%

-19.5%

Q1Q2

Q3

Q4

FY

Q1 - Q1 Q1 - Q4

17.3

17.9

18.5

18.6

72.4

-15.1%-21.3%

Page 5/5