Financial Report21 | 22

Contents

		 LEM Group5

Consolidated financial statements

10Notes to the consolidated financial statements

40

Auditor’s report

44

Corporate governance report

54

Compensation report

60

Auditor’s report		

LEM HOLDING SA

62

Financial statements

64

Notes to the financial statements

68

Auditor’s report

70Group subsidiaries

LEM Financial Report 21 | 22

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LEM GroupLEM Financial Report 21 | 22

Page 4

Consolidated statement offinancial position

AssetsNotes

31.3.2022

31.3.2021

in CHF thousands

Current assets
Cash and cash equivalents

17’19822’418

Accounts receivable

580’09672’259Inventories

6

46’14041’735

3’470

2’456

Income tax receivable
Other current assets

7

Total current assets

6’582

2’950

153’486

141’818

Noncurrent assets
Property, plant and equipment

8

60’57450’387Right-of-use assets

928’436

7’253

Intangible assets

10

4’072

4’326

Deferred tax assets

20

54’10259’741Other noncurrent assets

11

728

848

Total noncurrent assets

147’911122’555

Total assets

301’397

264’373

Notes

31.3.2022

31.3.2021

12

26’67727’09230’42328’852

Liabilities and equity
in CHF thousands

Current liabilities
Accounts payable
Accrued expenses
Lease liabilities

9

1’646

3’458

Income tax payable

20

3’793

31’027

Current provisions

13

Interest-bearing loans and borrowings
Other current liabilities

14

Total current liabilities

94

889

40’65024’000

1’267

2’281

104’549

117’599

Noncurrent liabilities
Noncurrent lease liabilities

928’3753’905

Noncurrent provisions

13

856

1’386

Deferred tax liabilities

20

3’469

3’409

Other noncurrent liabilities

14

2’952

6’175

Total noncurrent liabilities

35’651

14’875

Total liabilities

140’200

132’474

EquityShare capital

15

570

570

Treasury shares

15

(977)

(1’156)

Reserves

15

9’701

9’181

Retained earnings

151’904

123’304

Total equity

161’197

131’899

Total liabilities and equity

301’397

264’373

LEM Financial Report 21 | 22

Page 5

Consolidated
income statement

April to March
Notes

2021/222020/21in CHF thousands

Sales

373’395

300’966(196’116)(160’369)

Gross profit

177’279

140’597

Cost of goods sold

Sales expenses(28’909)(26’343)

Administration expenses(30’778)(26’306)

Research & development expenses(29’392)(28’248)

Other income
Operating profit

158

1’196

88’35860’896

Financial expenses

17

(650)

(510)

Financial income

18

269

148

Foreign currency exchange effect19(2’700)351

85’27760’885(12’910)(5’288)72’36755’597

63.48

48.79

Profit before taxes
Income taxes

20

Net profit
Earnings per share, in CHF

Basic & diluted earnings per share

21

The accompanying notes are an integral part of the consolidated financial statements.

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Consolidated statement ofcomprehensive income

April to March
Notes

2021/222020/2172’36755’597698

3’524

in CHF thousands

Net profit for the period recognized in the income statement
Other comprehensive income to be reclassified to profit and loss
in subsequent periods
Currency translation difference
Income tax
Total other comprehensive income to be reclassified to profit and loss
in subsequent periods

(106)

(433)

592

3’091

1’849

Other comprehensive income not to be reclassified to profit and loss
in subsequent periods
Remeasurement gains /(losses) on defined benefit plans

23

4’596

Income tax

20

(605)

(277)

Total other comprehensive income not to be reclassified to profit and loss
in subsequent periods

3’991

1’572

Other comprehensive income /(loss) for the period, net of tax

4’583

4’663

Total comprehensive income for the period

76’95060’260LEM Financial Report 21 | 22

Page 7

Consolidated statement ofchanges in equity

Attributable to shareholders
Notes
in CHF thousands

1 April 2020

SharecapitalTreasurysharesCapitalreserve

Translation
reserve

Retainedearnings

Total
equity570(581)

12’524(7’441)112’292

117’363

55’59755’597

Net profit for the year
Other comprehensive income/(loss)

3’524

1’139

4’663

Total comprehensive income

3’524

56’73660’260(45’580)(45’580)

Dividends paid

15

Movement in treasury shares

15

(575)

575

(144)

(144)

31 March 2021

570

(1’156)13’099(3’917)123’304

131’899

1 April 2021

570

(1’156)13’099(3’917)123’304

131’899

72’36772’367

Net profit for the year
Other comprehensive income/(loss)

698

3’885

4’583

Total comprehensive income

698

76’252

76’950(47’858)(47’858)

Dividends paid

15

Movement in treasury shares

15

31 March 2022

570

179

(179)

(977)

12’920(3’219)207207

151’904

161’197

The amount available for dividend distribution is based on LEM Holding SA’s shareholders’ equity determined in accordancewith the legal provisions of the Swiss Code of Obligations.

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Consolidated cash flow
statement

April to March
Notes

2021/222020/21

85’27760’885(19’976)

4’976

in CHF thousands

CASH FLOW FROM OPERATING ACTIVITIESProfit before taxes
Adjustment for noncash items and taxes paid
Net financial result
Derivative financial instruments revaluation
Depreciation and amortization

327

(18)

(837)

1’133

15’14913’746

Gain / Loss on disposal of fixed assets

43

20

Increase (+) / decrease (-) of provisions and allowances

924

3’347

Movement in pension

447

137

Interest received
Interest paid
Taxes paid

242

128

(167)

(110)

(36’104)(13’407)

Cash flow before changes in net working capital

65’30165’861

Change in inventories(5’750)(8’086)

Change in accounts receivable and other current assets(13’782)(12’650)

Change in payables and other liabilities
Cash flow from changes in net working capital
Cash flow from operating activities

4’660

5’760

(14’872)(14’976)

50’42950’885

CASH FLOW FROM INVESTING ACTIVITIESInvestment in fixed assets

8(20’755)(13’190)

Investment in intangible assets

10

(344)

(464)

Increase (–) in other non-current assets

(422)

(248)

Decrease (+) in other non-current assets

523

446

(20’998)(13’456)(12’516)

Cash flow from investing activities
CASH FLOW FROM FINANCING ACTIVITIESTreasury shares acquired (–)

15(14’653)

Treasury shares divested (+)

15

14’86012’371(4’388)(4’324)

Payment of lease liabilities
Lease incentive received

750

Dividends paid to the shareholders of LEM HOLDING SA

15(47’858)(45’580)

Increase (+) in financial liabilities

172’200

106’000

Decrease (–) in financial liabilities(155’550)(91’000)

Cash flow from financing activities(34’639)(35’048)

Change in cash and cash equivalents(5’208)

2’381

Cash and cash equivalents at the beginning of the period

22’41819’243

Exchange effect on cash and cash equivalents
Cash and cash equivalents at the end of the period

LEM Financial Report 21 | 22

Page 9(13)794

17’19822’418

Notes to the consolidated
financial statements

1.
General information
LEM Group (the Group) is a leading company in electrical measurement. LEM engineers the best solutions for energy and mobility, ensuring that its customers’ systems are optimized, reliable and safe. The Group has operations in fifteen countries andemploys 1’572 people per 31 March 2022. The parent company of LEM Group is LEM HOLDING SA (the Company) which is alimited company incorporated in Switzerland.
The registered office is Chemin des Aulx 8, 1228 Plan-les-Ouates. The financial year ends on 31 March (the year). The Company
has been listed on the SIX Swiss Exchange since 1986.
The Board of Directors approved the consolidated financial statements on 18 May 2022, to be submitted for approval by the
Annual General Meeting of Shareholders on 30 June 2022.

2.
Significant accounting principles
2.1 Basis of preparation
The consolidated financial statements of LEM Group have been prepared in accordance with the International Financial andReporting Standards (IFRS) and interpretations published by the International Accounting Standards Board (IASB) and comply
with Swiss law.
The consolidated financial statements have been prepared using the historical cost convention except that, as discussed in
the accounting policies below, certain items like derivatives are recorded at fair value.
The financial information is presented in thousands of CHF. The totals are calculated with the original unit amounts which could
lead to rounding differences. These differences in thousands of units are not changed in order to keep the accuracy of theoriginal data.
2.2 Adoption of new and revised International Financial Reporting Standards and interpretations
New and amended standards and interpretations
The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on orafter 1 January 2021. The Group has not early adopted any other standard, interpretation or amendment that has been issued
but is not yet effective.
Standard or ­interpretation

Title

Effective date

Amendments to IFRS 9, IAS 39,
IFRS 7, IFRS 4 and IFRS 16

Interest Rate Benchmark Reform – Phase 2

1 January 2021

Amendment to IFRS 16

Covid-19-Related Rent Concessions beyond 30 June 2021

1 April 2021

These amendments did not have a material impact on the Group’s consolidated financial statements.
Future standards
There are no standards that are not yet effective and that would be expected to have a material impact on the Group in thecurrent or future reporting periods.

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Notes to the consolidated
financial statements

2.3 Summary of critical accounting estimates and judgments
The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions
that affect the reported amounts of revenues, expenses, assets, liabilities and related disclosures at the date of the financial
statements. These estimates are based on management’s best knowledge of current events and actions that the Group mayundertake in the future. However, actual results could differ from those estimates. The key assumptions concerning the futureand other key sources of estimation uncertainty at the reporting date are discussed below.
LeasesThe Group assessed whether a contract is or contains a lease at inception of the contract. This assessment involves the exercise of judgment about whether it depends on a specific asset, whether the group obtains substantially all the economic
benefits from the use of that asset, and whether the Group has the right to direct the use of the asset.
Impairment of goodwill, other intangible assets and property, plant and equipment
The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. Other intangible assets andproperty, plant and equipment are tested for impairment if there is a triggering event indicating a potential impairment. These
calculations require the use of estimates in particular to the expected growth of sales, discount rates and development of raw
material prices.
Provisions
Provisions are recognized only if the specific criteria under IFRS are met. Provisions represent presumed obligations arisingfrom past events and are recognized only if their amount can be estimated reliably. Nevertheless, provisions are based onassumptions.
Income and other taxes
The Group operates in multiple jurisdictions with complex legal and tax regulatory environments. Some of these positions are
inherently uncertain and include those relating to transfer pricing matters and the interpretation of income tax laws applied tocomplex transactions. The Group periodically reassesses its tax positions. Changes to the financial statement recognition,measurement, and disclosure of tax positions are based on management’s best judgment given any changes in the facts, circumstances, information available and applicable tax laws.

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Page 11

Notes to the consolidated
financial statements

Employee benefits
The standard requires that certain assumptions are made in order to determine the amount to be recorded for defined benefit
obligations and pension plan assets, in particular for defined benefit plans. These are mainly actuarial assumptions such as
expected salary increase, employee turnover and discount rates. Substantial changes in the assumed development of any ofthese variables may significantly change LEM Group’s retirement benefit obligation and pension plan assets.
Valuation of deferred tax assets
The carrying amount of deferred tax assets is reviewed on each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
2.4 Basis of consolidation
The consolidated financial statements are comprised of LEM HOLDING SA and of its subsidiaries.
Subsidiaries
Subsidiaries are those entities over which the Group has control. Control is when the Group is exposed, or has rights, to variable
returns from its involvement with subsidiary and has the ability to affect those returns through its power over the subsidiary
to direct the relevant activities. Business combinations are accounted for using the acquisition method. Companies that are
acquired are included when control is obtained and are consolidated until control is transferred to the acquirer. The cost of purchasing a company is determined as the sum of the fair value of the assets that are to be paid to the seller and the obligations
that are entered into, or assumed, on the date of purchase. Identifiable acquired assets, liabilities and contingent liabilities arerecognized at their fair value as of the date of their acquisition. The Group’s share of the purchase price that exceeds the fairvalue of the identifiable net assets is recognized as goodwill. The Group’s share of the fair value of the identifiable net assetsthat exceeds the purchase price is shown as gain on bargain purchase on the income statement. Intragroup assets and liabilities as well as income and expenses are set-off against each other. Unrealized intragroup profits particularly on inventories andfixed assets are eliminated.
Associates
Investments in associated undertakings are accounted for using the equity method. These are undertakings over which theGroup exercises significant influence, but which it does not control.
No associated undertakings exist as per 31 March 2022 and 31 March 2021.
2.5 Foreign currencies
Functional and presentation currency
The consolidated financial statements are presented in Swiss francs as the presentation currency. The subsidiaries use local
currencies as their functional currency which is the currency of the primary economic environment in which they operate.
Foreign currency translation
All assets and liabilities in the balance sheets of subsidiaries that are denominated in the respective functional currencies aretranslated into Swiss francs at the year-end exchange rate. Items in the income statement and cash flow statement are translated at the average exchange rate for the year. The resulting translation differences are recognized in other comprehensive
income. When a foreign operation is disposed, the cumulative translation differences recognized in other comprehensive
income are transferred to the income statement.

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Page 12

Notes to the consolidated
financial statements

The following table summarizes the principal exchange rates that have been used in the translation process:Currency

Income statementof 2021/22

Income statementof 2020/21

Balance sheet
31.3.2022

Balance sheet
31.3.2021

Average rate in CHF

Average rate in CHF

Year-end rate in CHF

Year-end rate in CHF

BGN

0.546

0.550

0.525

0.566

CNY

0.143

0.136

0.146

0.144

DKK

0.144

0.144

0.138

0.149

EUR

1.068

1.076

1.026

1.106

GBP

1.255

1.205

1.213

1.298

JPY

0.00820.00870.00760.0085

RUB

0.012

0.012

0.011

0.012

USD

0.919

0.922

0.923

0.943

MYR

0.220

0.221

0.219

0.227

Foreign currency transactions
Foreign currency transactions are translated at the market rate prevailing at that time. The monetary assets and liabilities aretranslated at the year-end rates while non-monetary assets are translated at historical rates. Gains and losses arising from thetransactions as well as from the translation of monetary assets and liabilities in foreign currencies are recorded as income or
expenses in the income statement (except from translation differences arising from a monetary item that forms part of theGroup’s net investment in a foreign operation which are included in shareholders’ equity).
2.6 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash at bank and cash at postal accounts and bank deposits with an original
maturity of three months or less from the date of acquisition that are readily convertible to known amounts of cash.
2.7 Inventories
Inventories are stated at the lower of cost or net realizable value. The first-in, first-out (FIFO) method is applied. The cost of finished goods and work in process comprise raw materials, direct labor cost and other cost that can be directly allocated, suchas production overhead expenditures. Allowances are established when:– there is an objective indication that the Group will not be able to sell the goods in due time;– the goods are damaged, in excess or obsolete;– the net realizable value is below cost.
2.8 Property, plant and equipment
Property, plant and equipment is stated at cost of acquisition or construction, less depreciation and any impairment. Depreciation is calculated on a straight-line basis on the following estimated useful life:
Land

nil

Buildings

20 – 40 years

Machinery and equipment

5 – 8 years

Tools and moulds

2 – 5 years

Vehicles3 – 5 years

IT equipment

3 – 5 years

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Page 13

Notes to the consolidated
financial statements

Repairs and renewals are charged to the income statement when the expense is incurred. Subsequent expenditure on an itemof property, plant and equipment is capitalized only when it is probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured reliably.
2.9 Leases
The Group recognizes a right-of-use asset and a corresponding lease liability with respect to contracts considered as a leasein which the Group acts as lessee, except for leases with a term of 12 months or less (“short-term leases”) and leases for which
the underlying asset is of a low value (“low-value asset”).
At the commencement date of a lease, a lessee recognizes a liability measured at the present value of future lease payments
using the interest rate stated in the contract or in the absence of such a rate an incremental borrowing rate (i.e., the lease liability) and a corresponding asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use
asset). Extension options are initially only considered if the Group is reasonably certain that such options are exercised. Leaseliabilities are subsequently remeasured in case the lease term is changing or if extension options are reassessed. Right-of-use
assets are adjusted accordingly if lease liabilities are reassessed.
Lease liabilities are thereafter recorded at amortized cost whereas right-of-use assets are depreciated on a straight-line basis
over the lease term.
Real estate leases
The Group leases buildings for use as office and warehouse space. Lease terms are negotiated on an individual basis andcontain a wide range of different terms and conditions. Leases are typically made for a fixed period of 1 to 15 years and may
include extension options.
Vehicles leases
The Group maintains some leased vehicles with an average lease term of 3 years.
2.10 Intangible assets
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net assets of theacquired subsidiary at the date of acquisition. Goodwill on acquisitions is reported in the balance sheet under intangible assets
and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
Research & development
Research costs are expensed as incurred. An intangible asset arising from development is recognized if, and only if, the Groupcan demonstrate the following:– the technical feasibility of completing the intangible asset;– Group’s intention to complete the intangible asset;– ability to use or sell the intangible asset and the expectation that the intangible asset will generate probable future economic
benefits;– the availability of adequate technical, financial and other resources to complete the development; and– the ability to measure the expenditure attributable to the intangible asset during its development reliably.
Such development costs are capitalized and amortized over the life of the product or process.

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Page 14

Notes to the consolidated
financial statements

Other intangible assets
Other intangible assets with definite useful lives are carried at cost less amortization and any impairment.
Expenditure on computer software, acquired patents, trademarks and licenses is capitalized and amortized using the straightline method over their useful lives, not exceeding five years.
2.11 Impairment of tangible fixed assets, intangible assets and right-of-use assets
Assets that are subject to depreciation and amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value lesscost to sell and value in use.
For the purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable
cash-flows (cash-generating unit).
The value in use is calculated based on the estimated future cash-flows expected to result from the use of the asset and eventual disposal, discounted using an appropriate non-current interest rate.
Goodwill is tested for impairment annually (at 31 March) and when circumstances indicate that the carrying value may be
impaired. Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill
relates. Impairment losses relating to goodwill cannot be reversed in future years.
2.12 Financial assets
Financial assets comprise cash, receivables, certain accrued income, marketable securities and derivative financial instruments. Financial assets are recorded on the trade date.
Initial recognition and measurement
At initial recognition, financial assets are designated into two categories, financial assets at fair value through profit and loss
and at amortized cost.
Financial assets are initially recognized at fair value plus, in the case of a financial asset not at fair value through profit and loss,
directly attributable transaction costs.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification:– financial assets at fair value through profit and loss (refer to note 2.13);– loans and receivables are measured at amortized cost using the effective interest rate method, less impairment.
Accounts receivable are carried at original invoice amount less an allowance made for doubtful accounts based on a review ofall outstanding amounts at year-end covering expected lifetime credit losses. Allowances for doubtful accounts are establishedwhen there is an objective indication that the Group will not be able to collect the amounts due. Allowances for doubtful accounts are written-off when identified not recoverable in full. For accounts receivable that are not individually adjusted, LEM
applies the simplified approach for the recognition of the expected lifetime losses using a provision matrix.
Other receivables are measured at amortized cost less allowances for amounts that are deemed not to be recoverable.

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Page 15

Notes to the consolidated
financial statements

2.13 Derivative financial instruments
The Group uses derivative financial instruments to hedge foreign exchange risks of forecasted transactions. Derivative financial
instruments comprise forward exchange contracts.
Derivative financial instruments are initially measured at fair value and subsequently at fair value through profit and loss. Any
gains and losses arising from changes in fair value on derivatives are recorded directly in the income statement which meansthat the Group does not apply hedge accounting.
Derivative financial instruments are shown as part of other current assets and other current liabilities. In case the maturity isafter more than one year, derivative financial instruments are recognized under other non-current assets or other non-current
liabilities.
2.14 Financial liabilities
Financial liabilities comprise bank loans, payables, certain accrued expenses and derivative financial instruments at the end of
the period. Financial liabilities are initially recorded on the trade date.
All financial liabilities are recognized initially at fair value less, in the case of financial liabilities not at fair value through profit andloss, directly attributable transaction costs.
Financial liabilities that are due within 12 months after the balance sheet date are classified as current liabilities unless the Group
has an unconditional right to defer settlement of the liability until at least 12 months after the balance sheet date.
Borrowing costs are expensed as incurred except if they are capitalized as part of a qualifying asset.
Subsequent measurement
Subsequently, financial liabilities other than derivatives are measured at amortized cost based on their effective interest rate.
Interest expenses and foreign currency revaluations are recognized in the income statement. On derecognition, gains and losses are recognized in the income statement. Financial liabilities are derecognized when the contractual obligations are fulfilled,
cancelled or expire.
2.15 Employee benefits
The Swiss and German subsidiaries provide a defined benefit plan for employees; the other subsidiaries provide defined contribution plans according to local laws. In both cases the charges are included in the related periods in the personnel expensesof the various functions where the employees are located.
Defined benefit plan
The defined benefit obligation is determined annually by qualified independent actuaries. The obligation and cost of pension
benefits are determined using the projected unit credit method. Service costs are part of personnel expenses and consist of
current service cost, past service cost and gains/losses from plan settlements. Past service cost are recognized at the earlier of the date when the plan amendment occurs, or when restructuring cost are recognized. They include plan amendment
and curtailment. Gains or losses on settlement of pension benefits are recognized when the settlement occurs. Net interestis recorded in the financial result and is determined by applying the discount rate to the net defined benefit liability/asset thatexists at the beginning of the year. Actuarial gains and losses resulting from changes in actuarial assumptions and experience
adjustments are recorded in other comprehensive income as remeasurements of employee benefits. The return on plan assets(excluding interest based on the discount rate) and any change in the effect of an asset ceiling are also recorded in this line.
In accordance with IFRIC 14, any assets resulting from surpluses in defined benefit plans are limited its economic benefit suchas to the value of the maximum future savings from reduced contributions.

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Page 16

Notes to the consolidated
financial statements

Defined contribution plan
The subsidiaries sponsor defined contribution plans incl. state plans based on local laws and regulations. Defined contribution
plan expenses are recorded in the income statement as incurred.
LEM Incentive System
The LEM Incentive System consists of a short-term incentive component and a long-term incentive component.
The short-term incentive component compensates for the actual annual results and achieved performance. The long-term
incentive plan rewards the members of the Executive Management and Senior Managers for the sustainable financial performance of the Group.
Both elements are cash settled and the bonus payments are made in the first four months of the following fiscal year. The estimated payments are accrued for at year-end.
2.16 Provisions and contingent liabilities
Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation.
Warranty and customer claims
The Group recognizes the estimated liability to replace products still under the contractual warranty at the balance sheet date.
This position is calculated based on past history of the level of repairs and replacements. Additional specific provisions arebooked when required.
Litigations
The Group recognizes the estimated country and entity-specific risks relating to litigations with former personnel or indirect
taxation.
Restructuring
A constructive obligation to restructure arises only when an entity has a detailed formal plan for the restructuring identifying
at least:– the business or part of a business concerned;– the principal locations affected, function and approximate number of employees who will be compensated for terminating
their services;– the expenditures that will be undertaken; and– when the plan will be implemented;
and raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it.
Contingent liabilities
Contingent liabilities arise from past events where the outcome depends on future events. As the probability either cannot bemeasured reliably or the probability for a subsequent outflow lies below 50%, contingent liabilities are not recognized in thebalance sheet but are described in the notes.

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Page 17

Notes to the consolidated
financial statements

2.17 Share capital
LEM HOLDING SA has only ordinary registered shares. Dividends on ordinary shares are deducted from equity in the period inwhich they are declared.
Treasury shares
Own equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain orloss is recognized in the income statement on the purchase, sale, issue or cancellation of the Group’s own equity instruments.
Any difference between the carrying amount and the consideration is recognized in retained earnings.
2.18 Revenue recognition
Revenue from the sale of products is recognized at a point in time when LEM satisfies its performance obligation which is themoment when the customer acquires control over the products. This is generally achieved at delivery of the products. Revenue
is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duty.
Revenue from the sale of products comprises all revenue that is derived from sales of products to third parties after deductionof rebates and value-added taxes.
2.19 Income taxes and deferred taxation
Income taxes
Income taxes comprise all current and deferred income taxes, including the withholding tax payable on profit distributions within the Group. Income taxes are recognized in the consolidated income statement except for income taxes on transactions thatare recognized directly in shareholders’ equity or in other comprehensive income.
Deferred taxation
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax base of
assets and liabilities and their carrying amounts in the financial statements. Deferred taxes are determined using tax rates that
apply, or have been substantially enacted, on the balance sheet date in the countries where the Group is active. Tax losses
carried forward and deductible temporary differences are recognized as deferred tax assets to the extent that it is probablethat tax profit will be available in the future against which the tax losses carried forward can be utilized. Deferred tax assets andliabilities are offset against each other if the corresponding income taxes arise by the same tax authority and a legally enforceable right for offsetting exists.

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Page 18

Notes to the consolidated
financial statements

3.

Segment Information

Business segment information
Industry

Automotive

2021/222020/21Sales

287’617225’233

85’778

EBITDA

83’83258’36419’675

In CHF thousands

2021/222020/21

LEM Group2021/222020/2175’733373’395

300’966

16’278103’507

74’642

9’078

Income statement

Depreciation and amortization:
6’713

6’181

3’521

2’897

10’233

Intangible assets

Property, plant and equipment

313

321

99

105

413

426

Right-of-use assets

3’477

2’467

1’025

1’774

4’503

4’242

Total

10’503

8’969

4’645

4’777

15’14913’746

Operating profit

73’32949’39515’02911’50188’35860’896

Net financial expenses(3’081)

(11)

Taxes

(12’910)(5’288)72’36755’597

13’190Net profit for the year
Capital expenditures
Property, plant and equipment
Intangible assets
Total capital expenditures

15’044

7’156

5’711

6’034

20’755

265

347

79

117

344

464

15’309

7’503

5’790

6’151

21’09913’654For management purposes, LEM Group is organized into two operating segments, Industry and Automotive. The Industry segment develops, manufactures and sells electronic components called transducers for the measurement of current and voltage
of various industrial applications. The Automotive segment develops, manufactures and sells transducers for applications in
automotive markets.

4.

Revenue information

Regional information
Industry

Automotive

LEM Group2021/222020/212021/222020/212021/222020/21

Europe106’583

81’728

9’622

9’180

116’205

90’908

North America

26’67521’855

8’168

8’583

34’84230’437

Asia and rest of
the world154’360

121’650

67’98857’970222’348

179’621

Total

287’617225’233

85’77875’733373’395

300’966

In CHF thousands

Sales

LEM Financial Report 21 | 22

Page 19

Notes to the consolidated
financial statements

Geographical information
China

USA

GermanyJapan

In CHF thousands

2021/222020/212021/222020/212021/222020/212021/222020/21

Sales

141’881113’11632’607

28’77737’86229’70828’84523’677

Noncurrent assets1

13’78912’195

60

52

148

163

3’661

3’967

Right-of-use assets

1’712

2’150

50

177

48

105

529

67

2021/222020/21Italy
In CHF thousands

Sales

Switzerland
2021/22

Rest of the world

LEM Group

2020/212021/222020/212021/222020/2113’087

9’455

4’586

3’891

114’527

92’341373’395

300’966

Noncurrent assets1

23

34

39’57832’941

7’386

5’362

64’64554’714Right-of-use assets

52

73

23’389

2’546

2’656

2’134

28’436

7’253

1 Other than financial instruments, deferred tax assets and post-employment benefit assets

Sales are reported as per place of transaction.

5.

Accounts receivable
31.3.2022

31.3.2021

Accounts receivable – trade

74’91867’102

Allowance for doubtful accounts / expected credit losses(1’147)(710)

Total accounts receivable – trade

73’77166’392in CHF thousands

Other receivables

6’325

5’867

Total

80’09672’259Movements of allowance for doubtful accounts/expected credit losses
in CHF thousands

Total

Balance as per 1 April 2020

763

Addition

41

Unused amount reversed

0

Utilized during the year

(115)

Foreign exchange effect21

Balance as per 31 March 2021

710

Balance as per 1 April 2021

710

Addition

500

Unused amount reversed

0

Utilized during the year

(21)

Foreign exchange effect(42)

Balance as per 31 March 2022

LEM Financial Report 21 | 22

1’147

Page 20

Notes to the consolidated
financial statements

Aging analysis of accounts receivable
In CHF thousands

Not Due< 30 days

31– 90 days

55’895

7’635

2’659

(10)

(96)

(135)

91– 180 days

> 180 days

Total

459

454

67’102

(136)

(333)

(710)

31 March 2021
Accounts receivable – trade
Allowances for doubtful accounts /expected credit losses
Other receivables

5’864

0

0

0

3

5’867

Total

61’749

7’539

2’524

323

124

72’25961’858

8’985

3’129

229

717

74’918

(90)

(157)

(273)

(42)

(585)

(1’147)31 March 2022
Accounts receivable – trade
Allowances for doubtful accounts /expected credit losses
Other receivables

6’324

0

0

0

1

6’325

Total

68’092

8’829

2’856

186

133

80’096

6.

Inventories
31.3.2022

31.3.2021

Raw material

24’51419’487Work in progress

2’526

2’261

Finished goods and goods for resale

19’10019’987

Total

46’14041’735in CHF thousands

The inventories include allowances of CHF 6’092 thousand (at 31 March 2021 CHF 5’565 thousand).

7.

Other current assets
31.3.2022

31.3.2021

Advances to suppliers

4’665

1’224

Prepayments and accrued income

1’795

1’622

Derivative financial instruments

32

10

Other current assets

90

94

6’582

2’950

in CHF thousands

Total

LEM Financial Report 21 | 22

Page 21

Notes to the consolidated
financial statements

8.

Property, plant and equipment
Land and buildings

Machinery andequipment

Total

Net book value 1 April 202044

45’11145’155Investment

8

in CHF thousands

13’182

13’190

Disposal

(20)

(20)

Other movements

(9)

(9)

(9’070)(9’078)Depreciation(8)

Foreign exchange effect

(2)

1’151

1’149

Net book value 31 March 2021

42

50’34550’387

At cost of acquisition
Accumulated depreciation
Net book value 31 March 2021

Net book value 1 April 2021
Investment

144

140’274

140’417(101)(89’929)(90’030)42

50’34550’38742

50’34550’387

1’025

19’73120’755(27)(27)

Disposal
Other movements
Depreciation(8)

Foreign exchange effect41

41(10’227)(10’233)

(4)

(345)

(349)

Net book value 31 March 2022

1’055

59’51860’574

At cost of acquisition

1’153

147’493

148’646(98)(87’975)(88’072)

1’055

59’51860’574

Accumulated depreciation
Net book value 31 March 2022

LEM Financial Report 21 | 22

Page 22

Notes to the consolidated
financial statements

9.
9.1

LeasesRight of use assets
Real estate

VehiclesTotal

Net book value 1 April 2020

5’727

235

5’962

Addition

5’164

175

5’339

(192)

(4’242)in CHF thousands

Remeasurement(16)

Depreciation(4’050)Foreign exchange effect
Net book value 31 March 2021

(16)

183

27

210

7’008

245

7’253

At cost of acquisition

12’624611

13’235

Accumulated depreciation(5’616)(367)(5’983)

7’008

245

7’253

Net book value 1 April 2021

7’008

245

7’253

Addition

25’87458

25’932(134)(4’503)

Net book value 31 March 2021

Remeasurement(25)

Depreciation(4’369)Foreign exchange effect
Net book value 31 March 2022

(25)

(216)

(5)

(221)

28’272164

28’436

At cost of acquisition

37’117523

37’640

Accumulated depreciation(8’845)(359)(9’204)

Net book value 31 March 2022

28’272164

28’436

On 14 January 2022, LEM international SA entered into a lease agreement for its new headquarters for 15 years.

LEM Financial Report 21 | 22

Page 23

Notes to the consolidated
financial statements

9.2 Lease liabilities
The group presents the lease liabilities in the table below:
in CHF thousands

Balance as per 1 April 2020
Payment of lease liabilities including interest

Current leaseliabilities

Noncurrent
lease liabilities

1’629

4’514

(4’595)

Total
6’143
(4’595)

Non-cash items
Addition

2’754Interest

271

271

Remeasurements

(16)

(16)

Transfer from noncurrent to current
Exchange differences
Balance as per 31 March 2021

Balance as per 1 April 2021
Payment of lease liabilities including interest

2’584

5’338

3’371

(3’371)

0

43

178

221

3’458

3’905

7’363

3’458

3’905

(4’388)

7’363(4’388)Non-cash items
Addition

487

Interest

402

Transfer from noncurrent to current
Exchange differences
Balance as per 31 March 2022

26’382

26’869402

1’732(1’732)

0

(46)

(180)

(226)

1’646

28’37530’021

The weighted average incremental borrowing rate is 1.34 % (31 March 2021: 3.68%).
The following table presents the contract undiscounted cash flows for lease obligations as at 31 March 2022:
31.3.2022

31.3.2021

Within 1 year

1’853

3’789

Within 1 year to 5 years

12’562

3’288

Above 5 years

23’564547

In CHF thousands

9.3 Other lease disclosures
The following expenses related to the Group’s leasing activities are recognized in the income statement:
31.3.2022

In CHF thousands

Expenses relating to short-term leases / low value assets
Depreciation of right-of-use assets
Interest expenses on lease liabilities
Total

LEM Financial Report 21 | 22

Page 24

31.3.2021

(492)

(494)

(4’503)(4’242)

(402)

(271)

(5’397)(5’007)

Notes to the consolidated
financial statements

10.

Intangible assets

in CHF thousands

Net book value 1 April 2020

Goodwill

Patents

Other
intangible assets

Total

3’328

130

1’016

4’474

Investment

464

464

Other movements

(42)

(42)

(426)

(426)

Amortization
Foreign exchange effect

(158)

0

15

(143)

Net book value 31 March 2021

3’171

130

1’025

4’326

At cost of acquisition

3’171

Accumulated amortization

465

9’194

12’830(335)(8’169)(8’504)

Net book value 31 March 2021

3’171

130

1’025

4’326

Net book value 1 April 2021

3’171

130

1’025

4’326

Investment

344

344

Other movements

(35)

(35)

(413)

(413)

Amortization
Foreign exchange effect

(148)

0

(2)

(150)

Net book value 31 March 2022

3’022

130

920

4’072

At cost of acquisition

3’022

Accumulated amortization
Net book value 31 March 2022

3’022

465

9’285

12’773(335)(8’365)(8’700)

130

920

4’072

The entire goodwill of LEM Group results from the acquisition of NANA in 2000/01 and is allocated to the cash-generating unit
LEM Japan KK. The goodwill relates to the Industry segment. The recoverable amount has been determined based on value-inuse calculations. These calculations use cash flow projections of five years based on financial business plans and budgets approved by management. The projections include assumptions concerning revenue growth and expected operating costs overthe next five years plus a continuous period. Average revenue growth is projected at 7.8% and operating cost were estimatedbased on the experience of management. The pretax discount rate used within these cash flow calculations is 12.8% (2020/21
11.9%) and is based on the weighted average cost of capital of a peer group. The carrying value of the cash-generating unit including goodwill was compared to the value in use and no impairment was found to be present for the year ended 31 March 2022.
11.

Other noncurrent assets
31.3.2022

in CHF thousands

31.3.2021

Loan to personnel

190

251

Deposits & guarantees

538

597

Total

728

848

LEM Financial Report 21 | 22

Page 25

Notes to the consolidated
financial statements

12.

Accounts payable
31.3.2022

31.3.2021

Total accounts payable – trade

23’32022’527

Other payables

3’357

4’565

Total

26’67727’092

Litigations

Other

Total
2’436

in CHF thousands

13.

Provisions
Warranty andcustomer claims

In CHF thousands

Balance as per 1 April 2020

1’723

0

713

Additional provisions

1’570

359

266

2’195

Unused amounts reversed

(539)

0

(616)

(1’155)

Utilized during the year

(1’209)0(65)(1’274)Foreign exchange effect

49

0

24

73

1’594

359

322

2’275

Balance as per 31 March 2021
Of which current

889

Of which noncurrent

1’386

Balance as per 1 April 2021

1’594

Additional provisions

359

218

2’275

63

281

(213)

(1’011)

(112)

(594)

Unused amounts reversed(649)

Utilized during the year(482)

Foreign exchange effect

0

0

(2)

(2)

681

210

58

950

Balance as per 31 March 2022

(149)

322

Of which current

94

Of which noncurrent

856

Warranty and customer claims
Provisions for warranty and customer claims have been estimated based on past experience and the risk assessment of management. The warranty provision is expected to be used over the next five years.
Litigations
Despite the care that LEM applies in the separation process with personnel, such separation may result in legal conflicts. The
Group reviews all legal claims and takes appropriate actions to support its position and management estimates the reasonablerisk to be provided for.
The Company operates in multiple jurisdictions with complex legal and tax regulatory environments. In the frame of the continuous improvement of its processes and systems, LEM has reviewed the consumption taxes in several countries. It has appearedthat some LEM’s subsidiaries may not have been fully compliant with their local consumption tax regulations. As a consequence, LEM has estimated consumption tax provisions according to Management’s best judgment. Some of these positions
are inherently uncertain and include the interpretation of local regulations applied to complex transactions.

LEM Financial Report 21 | 22

Page 26

Notes to the consolidated
financial statements

14.

Other liabilities
31.3.2022

31.3.2021

Post-employment benefit plans

531

4’655

Derivative financial instruments

8823

Other liabilities

3’680

2’978

Total

In CHF thousands

4’219

8’456

Of which current

1’267

2’281

Of which noncurrent

2’952

6’175

The decrease of the post-employment benefit plan liability is mainly linked to the decrease in the DBO coupled with the increase in the fair-value of plan assets, as elaborated in note 23.

15. Equity
Share capital
The nominal share capital of CHF 570’000 comprises 1’140’000 registered shares, each with a nominal value of CHF 0.50.
There is neither authorized nor conditional share capital outstanding.
Investments in shares of LEM HOLDING SA held by the Group are classified as treasury shares and are accounted for at historicalcost. Treasury shares are not entitled to dividends.
Movement of treasury shares
NumberIn number of shares, in CHF

High

Price per share in CHF
AverageLow

Value
in CHF thousands

Value 1 April 2020

556

Purchases at cost

7’846

1’940.38

1’595.19

1’002.10

12’516(7’794)

1’970.22

1’532.01

1’011.32(11’940)

Sales at cost

581

Value 31 March 2021

608

Purchases at cost

6’936

2’670.00

2’112.59

1’634.18

14’653(7’095)2’670.00

2’090.42

1’657.40(14’832)

Sales at cost
Value 31 March 2022

449

1’156

977

In CHF

Ordinary dividend per share 2020/21		

42.00

Ordinary dividend per share 2021/22		

50.00

A dividend of CHF 50 per share will be proposed by the Board of Directors to the Annual General Meeting of Shareholders of
the Group on 30 June 2022. The expected payout for dividends amounts to CHF 57.0 million.

LEM Financial Report 21 | 22

Page 27

Notes to the consolidated
financial statements

16.

Staff costs
Notes

2021/222020/21

Production(25’792)(22’225)Sales(19’387)(18’488)

Administration(15’335)(14’103)

Research and development(20’046)(19’538)

Total(80’559)(74’354)

Salaries and wages(74’406)(70’681)

Temporary employee costs(3’624)(1’235)(2’335)(2’231)

In CHF thousands

Cost of defined benefit plans

23.1

Cost of defined contribution plans
Total
Number of employees at the end of the financial year

(194)

(207)

(80’559)(74’354)

31.3.2022

31.3.2021

Permanent employees

1’350

1’297

Temporary employees

198

135

Apprentices

24

16

1’572

1’448

2021/222020/21

Total

17.

Financial expenses

In CHF thousands

Interest expenses

(573)

(381)

Other financial expenses

(77)

(129)

Total

(650)

(510)

2021/222020/21

18.

Financial income

In CHF thousands

Interest income on cash

269

148

Total

269

148

2021/222020/21

19.

Exchange effect

In CHF thousands(3’481)

838

Fair value revaluation on derivatives

Exchange gains /losses

837(1’133)

Gains and losses on derivatives 1

(57)

646

(2’700)351

Total
1 Position includes cost of derivative hedging

In 2021/22, the exchange effect is mainly driven by the foreign exchange loss linked to EUR devaluation.

LEM Financial Report 21 | 22

Page 28

Notes to the consolidated
financial statements

20. Income taxes, deferred tax assets and liabilities
The Group operates in multiple jurisdictions with complex legal and tax regulatory environments. In certain of these jurisdictions, the Group has taken income tax positions that management believes are supportable and are intended to withstandchallenges by tax authorities. Some of these positions are inherently uncertain and include those relating to transfer pricing
matters and the interpretation of income tax laws applied to complex transactions. The Company periodically reassesses its tax
positions. Changes to the financial statement recognition, measurement, and disclosure of tax positions are based on management’s best judgment given any changes in the facts, circumstances, information available and applicable tax laws. Considering
all available information and the history of resolving income tax uncertainties, the Group believes that the ultimate resolution ofsuch matters will not have a material effect on its financial statements.
Differences between the final tax outcome and the amounts that were initially recorded impact the income and deferred taxes
in the period in which such determinations are made. The Group calculates its expected average tax rate as a weighted averageof the tax rates in the tax jurisdictions in which the Group operates.
LEM has taken the decision to repatriate all available dividends from its subsidiaries in the foreseeable future. Unrecoverable
withholding taxes are considered part of the expected tax rate. Deferred income tax liabilities have been established for unrecoverable withholding taxes that would be payable on the unremitted earnings of foreign subsidiaries.

2021/222020/21

Current income taxes(8’228)(6’881)

Deferred taxes relating to the origination and reversal of temporary differences(5’155)493

In CHF thousands

Deferred tax income/(expense) resulting from reduction in tax rates
Adjustment recognized in the period for current tax of prior year
Total

2

314

471

786

(12’910)(5’288)The tax expense relating to components of other comprehensive income amounts to CHF 711 thousand for the year 2021/22(tax income of CHF 710 thousand in 2020/21).
The Group’s effective tax rate differs from the Group’s average expected tax rate as follows:
2021/222020/21

Group’s average expected income tax rate

15.2

13.7

Group’s average expected withholding tax rate

1.3

2.2

Group’s average expected tax rate

16.5

15.9

In %

Tax effect ofPermanent differences

(0.7)

0.5

0.0

(0.5)

Adjustment in respect of previous periods’ income tax

(0.6)

(1.3)

Recognition of previously unrecorded tax losses

(0.2)

0.0

0.0

(5.8)

0.1

(0.1)

15.1

8.7

Changes in tax rates on deferred taxes

Tax benefit from usufruct transaction / Group IP transaction
Other differences
Group’s effective tax rate

LEM Financial Report 21 | 22

Page 29

Notes to the consolidated
financial statements

In 2020/21, LEM HOLDING SA sold the usufruct of the trademark license to LEM International SA which led to a positive impact
on the effective tax rate of around CHF 3.5 million.
Deferred tax assets and liabilities
Deferred taxes have been calculated on the following balance sheet positions:31.3.2022
In CHF thousands

Assets
Accounts receivable
Inventories
Property, plant and equipment

31.3.2021

Asset

Liability

Asset

Liability

54’351(4’982)60’038(2’107)

101

(131)

107

(93)

1’795

(470)

1’212

(702)

859

(4’018)

953

(747)

51’16399

55’902

(45)

426

0

1’857

0

7

(462)

7

(520)

Liabilities

4’492(3’228)

1’751(3’350)

Provisions

53

0

125

0

4’439

0

1’626

(11)

Intangible assets
Tax losses carried forward
Other assets

OthersWithholding tax on dividends

0(3’228)0(3’339)Gross deferred taxes

58’843(8’210)61’789(5’457)

Offsetting(4’741)

4’741(2’048)2’048

Net deferred taxes

54’102(3’469)59’741(3’409)31.3.2022

31.3.2021

The balance sheet contains the following:

Deferred tax assets

54’10259’741

Deferred tax liabilities(3’469)(3’409)Net assets / (liabilities)

50’63356’332

LEM Group has CHF 426 thousand (CHF 1’857 thousand in 2020/21) of deferred tax assets on tax losses. The Group expects thatthe related subsidiaries will be able to fully use the tax losses against future taxable profit. In 2021/22, the deferred tax assets of CHF
54.1m is mainly linked to the deferred tax asset of the technical intellectual property sale in 2019/20 and usufruct sale in 2020/21.

LEM Financial Report 21 | 22

Page 30

Notes to the consolidated
financial statements

21.

Earnings per share2021/222020/21

Basic and diluted earnings per share
Net profit for the year attributable to LEM shareholders – in CHF thousands

72’36755’597

Ordinary number of shares at the beginning of the year

1’140’000

1’140’000

Weighted average number of ordinary shares

1’140’000

1’140’000

Weighted average number of treasury shares

420

479

1’139’580

1’139’520

63.50

48.79

Weighted average number of shares outstanding
Earnings per share – basic and diluted in CHF

22. Related parties
Related parties are the Board of Directors and the Executive Managers as defined in the Corporate Governance guidelines.
The compensation to the Board of Directors is paid as a fixed fee in cash. The compensation for the Executive Management includes base salary, a performance-related bonus (LEM Incentive System), bonus and post-employment benefits.
In 2020/22 and 2020/21, no termination benefits have been paid. The base salary is the employee’s compensation before
deduction of the employee’s social security contributions. Bonus payments are made in cash.
Compensation of the Board of Directors
2021/22

In CHF thousands

2020/21

Annual fees

(870)

(870)

Total

(870)

(870)

2021/222020/21

Base salary(1’802)(1’690)Bonus(1’745)(1’435)Compensation of the Executive Management
In CHF thousands

Company’s contribution to pension fund
Total

(180)

(165)

(3’727)(3’290)In 2020/21 and 2021/22, no member of the Board of Directors has any significant business connection with LEM Group.
For details on the compensation of the Board of Directors and of the Executive Management, please refer to the compensation
report. Also, see Significant Accounting Principles 2.15 Employee benefits.

LEM Financial Report 21 | 22

Page 31Notes to the consolidated
financial statements

23. Retirement benefit obligations
The Group operates a defined benefit plan for all its employees in Switzerland with a collective foundation.
This foundation is a separate legal entity which is not part of the Group. It is managed by a board of trustees having equal representation of employees and employers of the affiliated companies. It is supervised by the supervisory authority and complies
with the requirements of Swiss pension law. The company pays contributions that are based on a percentage of the insured
salary under the Swiss law. The pension plan qualifies as a defined benefit plan under IAS 19 due to the various benefits guaranteed according to the law.
The plan is funded by contributions from both employer and employees.
The plan participants are insured against the financial consequences of old age, disability and death. The retirement benefit isbased on a notional individual savings account converted at retirement into a fixed pension benefit.
The assets of the foundation are invested into a diversified portfolio. Death-in service and disability benefits are insured withan insurance company. The pension plan does not expose the affiliated companies to any additional unusual risks not foreseenby the law. No curtailments or settlements occurred in 2021/22.
Over the period, the funded status moved from a deficit of CHF 4.1 million to a surplus of CHF 3.8 million. Therefore, the amountof surplus have been restricted to nil as the economic benefit in the form of a reduction in future contributions cannot be realized.
The following main assumptions have been updated:– discount rate from 0.3% to 1.25%;– interests credited on savings account remains stable at 1%;– salary increase rate remains stable at 1%.
Adjustment from actuarial assumptions have been accounted for in other comprehensive income and did not impact the net
profit for the year.
The subsidiaries abroad sponsor either defined contribution plans or defined benefit plans based on local laws and regulations.
A former employee in Germany benefits from a defined benefit obligation amounting to CHF 307 thousand at 31.3.2022 (CHF
347 thousand in 31.3.2021). Other subsidiaries’ defined benefit obligations in Japan, Bulgaria and Italy amount to CHF 224 thousand at 31.3.2022 (CHF 202 thousand in 31.3.2021).

LEM Financial Report 21 | 22

Page 32

Notes to the consolidated
financial statements

31.3.2022

In CHF thousands

31.3.2021

Fair value of plan assets at year-end

48’67244’323

Defined benefit obligations at year-end

44’88448’427

3’788(4’104)(Deficit)/ Surplus
Effect of asset ceiling
Funded status (Net (liabilities)/assets in the balance sheet)(3’788)0

0(4’104)2021/222020/2123.1 Cost of defined benefit plans
In CHF thousands

Current service cost

2’329

2’650

Past service cost

0

(441)

Net interest (income) / cost

6

22

2’335

2’231

Total pension expenses recorded in consolidated income statement

Costs related to the pension plan were charged to the different functional departments based on salary costs.
In 2020/21, past service costs resulted from a change in conversion rate.
23.2 Remeasurements of employee benefits
In CHF thousands

Experience adjustments on defined benefit obligation
Change in the effect of asset ceiling

2021/222020/21(5’678)

3’510

3’788

0

Return on plan assets excluding interests(2’662)(5’292)

Total remeasurements recorded in other comprehensive income(4’552)(1’782)2021/222020/2123.3 Reconcilitation of the effect of asset ceiling
In CHF thousands

Effect of asset ceiling per beginning of year00

(3’788)00

0(3’788)031.3.2022

31.3.2021

Fair value of plan assets as per beginning of year

44’32342’088Return on plan assets excluding interest income

2’662

5’292

Change in the effect of asset ceiling
Net interest (income) / cost
Effect of asset ceiling per end of year

23.4 Change in fair value of plan assets
In CHF thousands

Interest income on plan assets
Employer’s contributions
Employees’ contributions

136

261

1’888

2’094

1’735

1’855

Benefits paid

(2’072)(7’267)

Fair value of plan assets as per end of year

48’67244’323

LEM Financial Report 21 | 22

Page 33

Notes to the consolidated
financial statements

23.5 Change in present value of defined benefit obligation
31.3.2022

31.3.2021

Defined benefit obligation per beginning of year

48’427

47’838Current service cost

2’329

2’650

In CHF thousands

Past service cost
Employees’ contributions
Interest cost

0

(441)

1’735

1’855

143

282

(5’678)3’510

due to changes in assumptions(7’735)2’643

due to demographic changes

2’057

867

Benefits paid

(2’072)(7’267)

Defined benefit obligation per end of year

44’88448’427

Actual (gains) / losses

The weighted average duration of the Defined Benefit Obligation (DBO) at the end of the current fiscal year is 19 years.
In 2020/21, past service costs resulted from a change in conversion rate.
23.6 Asset allocation of investments
Major categories of plan assets as a percentage of the fair value of total plan assets
Long-term target

2021/22Equity securities

36.0 %

35.8 %

37.5 %

Debt securities

34.0 %

29.6 %

31.0 %

Real estate25.0 %

27.6 %

25.3 %Cash and other investments

5.0 %

7.0 %

6.2 %

100.0 %

100.0 %

100.0 %

In %2020/21

Strategic pension plan allocations are determined by the objective to achieve a return on investment which, together with thecontribution paid, is sufficient to maintain reasonable control over the various funding risks of the plans. Estimated returns on
assets are determined based on the asset allocation and are reviewed periodically. A temporary deviation from policy targets
is allowed.
Cash as well as most equity and debt securities have a quoted market price in an active market (level 1 of fair value hierarchy).
Other assets including real estate and other investments do not have a quoted market price (level 3 of fair value hierarchy).
23.7 Actuarial assumptions
The main actuarial assumptions used in the actuarial calculations include:2021/22In %2020/21

Discount rate

1.25 %

0.30 %

Salary increases

1.00 %

1.00 %The present value of the defined benefit obligation is determined annually by independent actuaries using the projected unit
credit method. Actuarial assumptions are required for this purpose.

LEM Financial Report 21 | 22

Page 34

Notes to the consolidated
financial statements

Sensitivities of significant actuarial assumptions
The sensitivity analysis is based on reasonable possible changes as of the end of the year 2021/22. Each change in a significant assumption was analyzed separately as part of the test.
The sensitivity of the DBO to changes in the main actuarial assumptions is as follows:
2021/222020/21

Increase by 0.25 %(1’731)(2’190)Decrease by 0.25 %

1’848

2’355

DBO increase / DBO (decrease) – In CHF thousands

Discount rate

Salary increase rate
Increase by 0.25 %

400

522

Decrease by 0.25 %

(403)

(506)

23.8 Maturity structure of pension obligation
The following main cash outflows are expected in future periods:
In CHF thousandsin 1 year

1’939

in 2 years

1’800

in 3 years

2’012

in 4 years

2’093

in 5 years

2’114

in 6 to 10 years

12’886

24. Contingent liabilities
The Group is from time to time impacted by changing political, legislative, fiscal and regulatory environments, including thoserelating to environmental protection. The frequency and effects on future operations and earnings are unpredictable and are
only partly covered by insurance policies. For the years 2020/21 and 2021/22, there is no material contingent liability from a
consolidated point of view.

LEM Financial Report 21 | 22

Page 35

Notes to the consolidated
financial statements

25. Financial risk management objectives and policies
The group classifies its financial assets and liabilities in the following categories as per IFRS 7:
Financial assets
31.3.2022
Book value

In CHF thousands

31.3.2021
Book value

Amortized
cost

Cash and cash equivalents

17’19822’418X

Accounts receivable

80’09672’259X

Derivative financial instruments – current

32

10

Other current financial assets

90

94

X

728

848

X

98’14495’629Other noncurrent financial assets
Total

At fair value
through
profit andloss

X

Financial liabilities
31.3.2022
Book value

In CHF thousands

31.3.2021
Book value

Other financial liabilities

Accounts payable

26’67727’092

X

Accrued expenses

30’42328’852X

Derivative financial instruments – current
Other current financial liabilities
Other noncurrent financial liabilities
Total

8

823

40’65024’000X

00

X

97’75880’767

At fair value
through
profit andloss

XBook values approximate fair values except for derivative financial instruments which are disclosed at fair value.
Fair value of the lease is amounting to CHF 37’979 thousand in 2021/22 (CHF 7’624 thousand in 2020/21)
Changes in liabilities arising from financing activities
Cash impact

1.4.2020

In CHF thousands

Cash flows
Inflow

Cash flows(Outflow)

Non-cash
impactFair values
changes andOthers

31.3.2021

Interest-bearing loans and borrowings

9’000

106’000(91’000)

0

24’000

Total

9’000

106’000(91’000)(0)

24’000Cash impact

Non-cash
impact

1.4.2021

In CHF thousands

Cash flows
Inflow

Cash flows(Outflow)

Fair values
changes andOthers

31.3.2022

Interest-bearing loans and borrowings

24’000172’200(155’550)040’650Total

24’000172’200(155’550)040’650LEM Financial Report 21 | 22

Page 36

Notes to the consolidated
financial statements

Management assessed that fair value levels of all financial assets and liabilities approximate their book value.
The Group enters into derivative transactions such as forward contracts to hedge the USD and EUR risks.
The purpose of these currency hedges is to manage the currency risks arising from the Group’s operations.
It is the Group’s policy that no derivatives for speculative purposes shall be entered into.
The main risks arising from the Group’s financial instruments are foreign currency risks and credit risks whereas the others areof minor or no impact.
The Board of Directors reviews and agrees policies for managing each of those risks.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e.,
as prices) or indirectly (i.e., derived from prices).
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.
The Group’s net financial assets at fair value amount to CHF 24 thousand per 31 March 2022 (financial liabilities of CHF 813
thousand per 31 March 2021), all classified under level 2.
During the two last reporting periods, there were no transfers between Level 1 and Level 2 fair value measurements, and notransfers into and out of Level 3 fair value measurements.
Foreign currency risk
The Group operates globally and is exposed to various foreign exchange risks primarily to the USD, EUR, JPY, CNY and GBP.
The Group generally seeks to reduce these risks by optimizing its natural hedging strategy (cash inflows and outflows in a specific currency should be balanced as far as possible).
The Group’s policy states that 100% of LEM’s net exposure for the main currencies EUR, USD and JPY is to be hedged on arolling 12-month’ basis.
Currency risks also arise from translation differences that are not hedged by the Group when preparing the consolidated financial statements in CHF. The foreign exchange translation is excluded from the calculation of the sensitivity analysis for currency
risk below.
Sensitivity analysis for currency risk
The sensitivity analysis is performed per 31 March 2022 with a 5% change in the USD, EUR, JPY, CNY and GBP with all othervariables held constant of the Group’s profit before tax (due to the changes in the fair value of the monetary assets and liabilities) and the Group’s equity.
The sensitivity analysis performed for the financial year shows an impact of CHF ±837 thousand for a ±5% EUR rate change(CHF ±1’015 thousand per 31 March 2021), of CHF ±510 thousand for a ±5% USD rate change (CHF ±452 thousand per 31
March 2021),of CHF ±1’515 thousand for a ±5% CNY rate change (CHF ±1’582 thousand per 31 March 2021) and of CHF ±164
thousand for a ±5% JPY rate change (CHF ±133 thousand per 31 March 2021). For other currencies, there is no significant
impact.

LEM Financial Report 21 | 22

Page 37

Notes to the consolidated
financial statements

Credit risk
Credit risk is the risk that a financial loss occurs if a counterparty is unable or unwilling to fulfill its contractual payment obligation. The Group trades with recognized and creditworthy parties. Accounts receivable are monitored on a monthly basis.
It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures.
In case of a deterioration of the credit history, advance payments are required. The Group’s exposure to bad debts is not significant. The maximum exposure is the carrying amount as disclosed in note 5. There are no significant concentrations of credit
risk within the Group. With respect to credit risk arising from the other financial assets in the Group which comprises cash andcash equivalents, other current assets and certain derivative instruments, the Group’s exposure to credit risks arises from apotential default of the counterparty, with a maximum exposure equal to the carrying amount of these positions.
Liquidity risk
The Group operates a cash-pooling agreement in which cash targets are set for all the subsidiaries. Cash surplus / shortages
are balanced in intercompany loans on a monthly basis. Group capital requirements are managed centrally by corporate finance. In case liquidity is required, bank loans are either taken-up centrally and passed on as an intercompany loan, or provided
directly by the bank to the subsidiary with a reduction of the Group’s total credit line. The total leverage of the Group is low, thefinancial liabilities mature in less than one year based on the carrying value of borrowings reflected in the financial statements.

31.3.2022
Book valueLess than
one yearAccounts payable

26’677

26’67727’09227’092

Accrued expenses

30’42330’42328’852

28’852

In CHF thousands

Derivative financial instruments – current

Over oneyear

31.3.2021
Book valueLess than
one year

8

8

823

823

Lease liabilties

1’646

1’853

3’458

3’789

Noncurrent lease liabilties

28’3750

Other current financial liabilities

40’65040’650127’779

99’611

Total

36’12636’1263’905

024’00024’00088’13084’556

Over one
year

3’836
3’836

The Group’s exposure to the risk of changes in market interest rates with the current financial leverage is low. Per 31 March
2022, the bank credit line amounts to CHF 40.6 million.
Capital management
The primary objective of the Group’s capital management is to ensure that it maintains a healthy and stable equity ratio in order to secure the confidence of shareholders and investors, creditors and other market players and to strengthen the future
development of the Group’s business activities. The Group manages its capital structure and makes adjustments if required byeconomic conditions. LEM targets a dividend payout ratio significantly above 50% of the consolidated net profit for the year.
However, it may diverge from this policy due to economic prospects or on the grounds of planned future investment activities.

LEM Financial Report 21 | 22

Page 38

Notes to the consolidated
financial statements

26. Scope of consolidation
Full consolidation

Country

Currency

Share capital

Ownership

EuropeLEM Europe GmbHGermany

EUR

75’000100 %LEM HOLDING SA

Switzerland

CHF

570’000

100 %LEM International SA

Switzerland

CHF

100’000

100 %LEM Intellectual Property SA ("in liquidation")

Switzerland

CHF

300’000

100%

LEM Management Services SARL

Switzerland

CHF

20’000100 %LEM Advisory Services SA

Switzerland

CHF

100’000

100 %LEM Tech France SAS

FranceEUR

50’000100 %LEM Bulgaria EOOD

Bulgaria

BGN

1’971’000

100 %LEM Russia Ltd

RussiaRUB

16’400’000

100 %

USA

USD

150’000

100 %LEM Electronics (China) Co. Ltd

China

CNY

204’495’594

100 %LEM Japan KK

Japan

JPY

16’000’000

100 %Malaysia

MYR

200’000

100 %North America
LEM USA Inc.
Asia

LEM Malaysia SDN, BHD

27. Changes in scope of consolidation
In 2021/22, there are no changes in scope compared to last year.

28. Events after the balance sheet date
There were no events subsequent to the balance sheet date that require adjustment to or disclosure in the financial statements.

LEM Financial Report 21 | 22

Page 39

Auditor’s report

Statutory auditor’s report on the audit of the consolidated financial statements
OpinionWe have audited the consolidated financial statements of LEM Holding SA and its subsidiaries (the Group), which
comprise the consolidated statement of financial position as at 31 March 2022 and the consolidated statement ofincome, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including asummary of significant accounting policies.
In our opinion, the consolidated financial statements (pages 5 to 39) give a true and fair view of the consolidated
financial position of the Group as at 31 March 2022, and its consolidated financial performance and its consolidated
cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) and comply
with Swiss law.
Basis for opinion
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and Swiss AuditingStandards. Our responsibilities under those provisions and standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We are independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss
audit profession, as well as the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA Code) and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of our auditof the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters. For each matter below, our description of how our audit addressed the matter isprovided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report, including in relation to these matters. Accordingly, our audit included theperformance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address
the matters below, provide the basis for our audit opinion on the consolidated financial statements.

LEM Financial Report 21 | 22

Page 40

Auditor’s report

Recoverability of deferred tax assets
Risk
At 31 March 2022, the Group disclosed deferred tax assets of CHF 54m in Note 20, which were recognized andrelate to tax losses carried forward and timing differences. The analysis of the recognition and recoverability ofthe deferred tax assets was significant to our audit because the amounts are material, the assessment process iscomplex and judgmental and is based on assumptions that are affected by expected future market or economic
conditions.
Our audit response
Our procedures included, amongst others:– We have audited the tax provision and the related business tax risks.
– We also involved our internal tax experts to assess the recoverability of the asset as well as inputs into the model suchas tax rate.
– We analyzed the offsetting and presentation of deferred tax positions.
– We audited the current year tax provision, the Company’s reconciliation of book to taxable income, as well as the deferred tax balances and evaluated whether the assumptions applied by management on the recoverability of deferred
tax assets are consistent with its budget and forecasts.
Our audit procedures did not lead to any material reservations regarding the recognition and recoverability of thedeferred tax assets.
Other information in the annual report
The Board of Directors is responsible for the other information in the annual report. The other information comprises all information included in the annual report, but does not include the consolidated financial statements, thestand-alone financial statements and our auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information in the annual report and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information in the annual report and, in doing so, consider whether the other information is materially inconsistent withthe consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of thisother information, we are required to report that fact. We have nothing to report in this regard.

LEM Financial Report 21 | 22

Page 41

Auditor’s report

Responsibility of the Board of Directors for the consolidated financial statements
The Board of Directors is responsible for the preparation of the consolidated financial statements that give a trueand fair view in accordance with IFRS and the provisions of Swiss law, and for such internal control as the Board of
Directors determines is necessary to enable the preparation of consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with Swiss law, ISAs and Swiss Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is located at
the website of EXPERTsuisse: http://www.expertsuisse.ch/en/audit-report-for-public-companies. This description
forms part of our auditor’s report.

LEM Financial Report 21 | 22

Page 42Auditor’s report

Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an internal
control system exists, which has been designed for the preparation of consolidated financial statements according
to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.
To the General Meeting of LEM Holding SA, Meyrin
Geneva, 18 May 2022
Ernst & Young Ltd

Daniel Zaugg
Licensed audit expert(Auditor in charge)

Yevgenii Garnaga

LEM Financial Report 21 | 22

Page 43

Corporate governancereport

The following information complies with the Corporate Governance Directive of the SIX Swiss Exchange (SIX) and the disclosure rules of the Swiss Code of Obligations. In order to enhance the clarity of this chapter, reference is made to otherparts of this Financial Report and our website (www.lem.com). Key elements are contained in the Articles of Incorporation.
1.
Group structure and shareholders
Group structure
LEM HOLDING SA is domiciled at Chemin des Aulx 8, CH–1228 Plan-les-Ouates. LEM’s registered shares are listed on the main
segment of the SIX Swiss Exchange (LEHN, security no. 2 242 762; ISIN 0022427626). On 31 March 2022, the market capitalization was CHF 2’554 million. LEM Group is structured into Industry and Automotive segments. Appropriate segment reporting
pursuant to IFRS is contained in note 3 of the consolidated financial statements. All companies in LEM Group are listed under“Scope of consolidation” in note 26 of the consolidated financial statements, with their respective company names, registeredoffices, share capitals and the relevant percentages of shares held. There are no other listed companies in the scope of consolidation.
Significant shareholders
The following shareholders held 3 % or more of the share capital and voting rights:

31.3.2022

31.3.2021

SharesIn %SharesIn %Werner O. Weber and Ueli Wampfler, in Zollikon/Wollerau,
Switzerland, through WEMACO Invest AG and Voltano AG
in Cham, Switzerland

584’700

51.3 %

582’600

51.1 %

Ruth Wertheimer, in Kfar Shmaryahu, Israel, through7-Industries Holding B.V., in Amsterdam, Netherlands

34’381

3.0 %36’381

3.2 %

n.a.

3 %–5 %1

n.a.

3 %–5 %1

36’5503.2 %36’250

3.2 %In number of shares, per cent of shareholding

Capital Group Companies Ltd., Los Angeles, U.S.A.
J. Safra Sarasin Investmentfonds AG, Basel, Switzerland

1 Capital Group disclosed a 3.02 % stake as of 31 August 2020, but did not report the exact number of LEM shares per 31 March 2021 and 31 March 2022

Shareholdings of
non-executive Directors

Shareholdings of
Executive Management
31.3.2022
Number ofshares held

31.3.2021
Number ofshares held

Andreas Hürlimann

1’001

1’001

François Gabella

600

600

Frank Rehfeld, CEO

00Ilan Cohen

300

300

Andrea Borla, CFO

0072’70070’600300

100

Ueli Wampfler
Ulrich Jakob Looser

0

0

Total

Werner C. Weber

74’90172’601LEM Financial Report 21 | 22

Page 44

31.3.2022
Number ofshares held

31.3.2021
Number ofshares held

Rodolphe Boschet, CHRO

00

Rebecca Cullinan, SVP Industry

00Rainer Bos, SVP Automotive

0

0

Total

0

0

Corporate governancereport

The notifications which have been sent to the Company and the disclosure office of the SIX Swiss Exchange AG during thefinancial year pursuant to article 120 of the Federal Act on Financial Market Infrastructures and Market Conduct in Securities
and Derivatives Trading may be viewed via the search function on https://www.six-exchange-regulation.com/en/home/publications/significant-shareholders.html/.
The trading of LEM shares by both Board of Directors and Executive Management has to respect LEM’s disclosure and insider
trading policy as well as all applicable rules and legislation.
Cross-shareholdings
LEM has no cross-shareholdings with other joint-stock companies.

2.
Capital structure Capital and shares
The nominal value of the share capital of LEM HOLDING SA is CHF 570’000, which is divided into 1’140’000 fully paid-up registered shares with a par value of CHF 0.50 each. No changes of the total share capital have occurred during the last 3 years.
There are no shares with preferred voting rights. All shareholders are entitled to the same dividends. There are no restrictions
on the transfer of shares. In order to be registered in the share register, each shareholder shall declare that he/she holds theshares for their own account.
On 31 March 2022, LEM HOLDING SA held 449 treasury shares.
Authorized and conditional capital
There is no authorized or conditional capital, nor are there any profit-sharing certificates or participation in certificates or any
convertible bonds outstanding.

3.
The Board of Directors’ election, terms of office and cross-involvement
The Board of Directors is comprised of at least three members who are individually elected at the Annual General Meeting fora mandate of one year, which is renewable up to an age limit of 70. The Board of Directors constitutes itself, except for the
Chairman of the Board of Directors and the members of the Compensation Committee who are elected by the Annual General
Meeting of Shareholders.
At the Annual General Meeting on 24 June 2021, Andreas Hürlimann, François Gabella, Ilan Cohen, Ueli Wampfler, Ulrich J. Looser and Werner C. Weber were re-elected as members of the Board of Directors. Andreas Hürlimann was re-elected as Chairmanof the Board of Directors. In addition, shareholders elected Andreas Hürlimann and Ulrich J. Looser to the Nomination & Compensation Committee (NCC). Ulrich J. Looser chairs the Committee.
All members of the Board of Directors have been non-executive. Only François Gabella had been part of the Executive Management of LEM before his election as member of the Board of Directors. No member of the Board of Directors has any significant
business connection with LEM Group.
The Board of Directors was comprised of the following members as of 31 March 2022:

LEM Financial Report 21 | 22

Page 45

Position
Chairman of the Board of Directors,
Chairman of the Strategy Committee,
Member of the Nomination andCompensation Committee
Entry
2011
– Since 2011, Entrepreneur

Nationality Swiss
Born in 1964

– 2005 – 2010, Managing Director,
Spencer Stuart, Zürich
– 1999 – 2005, Global Director of Industry
Practices and Member of the Executive
Board, Arthur D. Little Inc., Zürich,
Lisbon, London and Paris– Glatz AG, Frauenfeld, Member of the Board of Directors– Novo MOF AG, Villigen, Member of the Board of Directors– themissinglink ag, Cham, Member of the Board of Directors– Sustainable Real Estate Investments SICAV, Zürich, Chairman of theBoard of Directors– Steiner Investment Foundation, Zürich, Member of the Board ofTrustees
Education– M. Sc. Electrical Engineering, ETH Zürich, Switzerland– DAS Finance, University of Zürich, Switzerland

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

Other notable activities

Entry
2018

– Sensirion AG, Stäfa, Member of the Board of Directors– 2010 – 2018, CEO, LEM Group

Nationality Swiss
Born in 1958

– HMT Microelectronic AG, Biel/Bienne, Member of the Board of
Directors– 1990 – 1999, international business development, sales and management roles
with Siemens Schweiz AG, ABB Power
Generation AG and Oerlikon Aerospace
Inc., Zürich, Baden, Montréal

Professional background

François Gabella– Condis SA, Rossens, Member of the Board of Directors– ElectricFeel AG, Zürich, Member of the Board of Directors

Professional background

Andreas Hürlimann

Other notable activities– Natron Energy, U.S.A., Chairman of the Board– Sonceboz SA, Sonceboz, Member of the Board of Directors– Optotune AG, Dietikon, Member of the Board of Directors– Nextlens AG, Dietikon, Member of the Board of Directors– 2006 – 2010, CEO, Tesa SA– Fischer Connectors SA, Saint-Prex,
Member of the Board of Directors– 2002 – 2006, SVP, Areva– Vice President of Swissmem, Zürich

– 1996 – 2002, Business Area Manager,
ABB Power Transformers– Switzerland Global Enterprise, Zürich,
Vice President of the Advisory Board– Economie Suisse, Member of the Board, Zürich
Education– M. Sc. Microtechnics EPFL, Lausanne, Switzerland– MBA IMD, Lausanne, Switzerland

Position
Member of the Board of Directors

Other notable activities

Entry
2010

– MOTX LTD, Israel, Member of the Board of Directors

Professional background– Since 2019, Chairman and CEO of Caja
Robotics– 2009 – 2019, President, Servotronix
Motion System Ltd.

Ilan Cohen
Nationality Israeli
Born in 1956

– 2008 – 2009, General Manager, Kollmorgen Industrial & Commercial Engineered
Solutions Ltd. (Danaher Group)– 1997 – 2008, President and CEO,Kollmorgen Servotronix Ltd.
– 1987, Founder, Servotronix Ltd.
– 1983 – 1990, Associate professor,
University of Tel Aviv, Israel

LEM Financial Report 21 | 22

Page 46– Caja Robotics, Israel, Chairman of the Board of Directors– New Era Partner Capital, Israel and U.S.,
Member of the Advisory Board– Negba Houses for Children at Risk in Israel, Honorary President
Education– Ph.D. Control System, Ecole Polytechnique de Bruxelles, Belgium– MSEE, CALTECH Pasadena, USA– M.Sc. and BSEE Electro-mechanical engineer,
Ecole Polytechnique de Bruxelles, BelgiumPosition
Member of the Board of Directors,
Chairman of the Nomination andCompensation Committee,
Member of the Audit and Risk Committee– Since 2009, Berg Looser Rauber &Partner (BLR&Partners)– 2001 – 2009, Accenture, various
positions including Managing Director
Austria/Switzerland/Germany Management Consulting and Chairman Accenture
AG (Switzerland)– 1987 – 2001, McKinsey & Company,
industry, energy, pharma and public
sector practices, partner election 1993

Nationality Swiss
Born in 1950

– Swiss-American Chamber of Commerce– Swiss National Science Foundation, Member of the Executive
Committee of the Foundation Council (until 31 Dec 2020),
Member of the Foundation Council (ongoing)
Education– M.Sc. Physics, ETH Zürich, Switzerland– M.A. HSG, University of St. Gallen, Switzerland

Entry
2007

– Merbag Holding AG (Merbag Group), Cham,
Vice Chairman of the Board of Directors

Professional background– Caspar Finanz AG (Traco Power Group), Baar,
Member of the Board of Directors– Artofex Holding AG, Cham,
Owner and Chairman of the Board of Directors– Rebew AG, Zürich, Member of the Board of Directors– 1998 – 2004, Director, STG Schweizerische Treuhandgesellschaft, Zürich

– Voltano AG, Cham, Owner and Chairman of the Board of Directors– 1974 – 1998, STG Coopers & Lybrand,
Zürich (Partner since 1991)– Lic. oec., University of Zürich, Switzerland

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

Other notable activities

Education– Certified auditor– WEMACO Invest AG, Zug, Member of the Board of Directors– weber schaub & partner ag, Zürich,Member of the Board of Directors– Arosa Bergbahnen AG, Arosa, Member of the Board of Directors

Professional background– Since 1998, weber schaub & partner ag,
PartnerNationality Swiss
Born in 1960

– University Hospital Balgrist, Member of the Board

Other notable activities

Entry
2017

Werner C. Weber– Bachofen Holding AG, Chairman of the Board of Directors

Position
Member of the Board of Directors,
Chairman of the Audit and Risk Committee– Since 2004, Founder and Senior Partner,
Wampfler & Partner AG, Zürich

Ueli Wampfler– u-blox AG, Member of the Board of Directors– Economiesuisse, Member of the Board

Professional background

Nationality Swiss
Born in 1957

– Kardex AG, Member of the Board of Directors– University of Zürich, Member of the University Council

Entry
2015

Ulrich J. Looser

Other notable activities– Prior thereto in particular Freddy Burger
Management Group in Zürich as LegalCounsel and General Secretary, andPricewaterhouseCoopers AG in Zürich as
Legal and Tax Counsel– Schilthornbahn AG, Lauterbrunnen,
Member of the Board of Directors– City Parkhaus Aktiengesellschaft, Zürich,Member of the Board of Directors– MedioSearch AG, Bern / SkySmile AG, Zürich,Member of the Board of Directors
Education– Dr. iur. University of Zürich, Switzerland– Admitted as an attorney-at-law in Zürich, Switzerland– Mediator SBA, Zürich, Switzerland

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Corporate governancereportExternal mandates
Pursuant to Article 31 of the Articles of Incorporation, members of the Board of Directors may not hold more than ten additional
mandates of which no more than four may be in listed companies. The following mandates are not subject to the above limitations: (a) mandates in companies which are controlled by LEM or which control LEM; (b) up to five mandates held at the requestof LEM or companies controlled by it; and (c) up to six mandates in associations, charitable organizations, foundations, trusts
and employee welfare foundations. Mandates shall mean mandates in the supreme governing body of a legal entity, which is
required to be registered in the commercial register or a corresponding foreign register. Up to 20 mandates in different legal
entities which are under joint control or same beneficial ownership are deemed one mandate.
Internal organizational structure
The Board of Directors meets as often as necessary, but six annual meetings are planned in advance. In the completed financial
year, six full-day meetings were held. The meetings usually take place at the Company’s registered office in Plan-les-Ouates.
The Chairman, after consulting with the CEO and the Chairmen of the committees, determines the agenda for the Board meetings. The members of the Board of Directors can ask for additional items to be included on the agenda. They receive supporting
documents beforehand, allowing for a comprehensive preparation of the meeting. The CEO and CFO attend the meetings ofthe Board of Directors as non-voting guests. Depending on the topics, other members of Executive Management participate in
the meetings in order to respond to specific questions. Decisions can be taken by the Board of Directors if at least half of the
Directors are present, and a simple majority of them is sufficient. In the event of tie, the Chairman has the casting vote. Minutesof the meetings including decisions taken are prepared by the CFO and distributed to the members of the Board of Directors,
the CEO and the CFO.
The Board of Directors reviews its working procedures, the efficiency and effectiveness of its teamwork as well as its interaction with the Management of the Company on a regular basis. Regular feedback sessions at the end of a meeting provide
valuable inputs for the continuous improvement of the Board’s coherence and leadership.
Definition of areas of responsibility
The Board of Directors delegates the management of the Company to the CEO to the extent permitted by the Swiss Codeof Obligations. The Board of Directors reviews and assesses at least on an annual basis and takes decisions in the following
areas:– review and approval of the strategy, business plan, annual business objectives and budget for the LEM Group;– approval of creation/closing of any subsidiary and purchase/sale of any interest in any company or entry into any merger or
joint venture agreement;– appointment/dismissal of the Executive Management;– monitoring the ethical and legal behavior of LEM;
– review of human resources management, including employee satisfaction and management development and legal, intellectual property, social and environmental aspects.

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Corporate governancereportInformation and control systems of the Board of Directors vis-à-vis Executive Management
The Board of Directors ensures that it receives sufficient information from the Management to perform its supervisory duty
and to make the necessary decisions.
The Board of Directors obtains the information required to perform its duties through several means:– the Board of Directors receives monthly and quarterly reports on the current development of the business;– informal meetings and teleconferences are held as required between the Chairman and the CEO as well as between the
Chairman and individual members of the Board of Directors;– the Committees meet at regular intervals and exchange detailed information with the Executive Management;– the Board of Directors receives detailed information to each agenda item one week before the Board meeting;– each Executive Manager joins at least one but usually multiple Board sessions in any given year.
Business risk management
In compliance with Swiss law, LEM is using a standardized procedure to analyze its business risks. LEM’s risk management
covers all types of risk: financial, operational and strategic – including the external business environment, compliance andreputational aspects.
The Executive Management conducts an annual risk analysis. The results and consecutive action plans are thereafter presented to and formally approved by the Board of Directors.
The risk management approach follows five steps: in a first step, potential hazards are evaluated and a consolidated list with
5 to 10 main hazards is set up. In a second step, each hazard is assessed by a product of probability and quantified impact.
Step two results in a risk map, which visualizes LEM’s potential risk environment. In step three, an action plan is put in place tomitigate the risks. The hazards thereafter are revalued a second time, taking into consideration the mitigation measures. In step
four, the action plan is validated and thereafter monitored on a bi-annual basis (step five).
Internal control system
In compliance with Swiss law, LEM has put in place an internal control system.
Starting from the material positions in the annual financial results, the important underlying processes and process owners
have been identified. For each process, key risks that could lead to errors in the financial reporting have been identified. For
each key risk, key controls have been defined and responsibilities assigned to assure effective compliance and documentationof the key controls. The process has been presented to and approved by the Audit & Risk Committee.
Looking forward, the process owners will perform an annual process review whereby identified weaknesses shall be continuously improved and key risks and controls shall be updated. Based on the input of the process owners, the CFO prepares anannual report on the internal control system, which is presented to and discussed with the Audit & Risk Committee.

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Corporate governancereportCommittees
Three standing committees support the Board of Directors. They are comprised of at least two non-executive members of theBoard of Directors. They meet whenever necessary but at least twice a year.
– The primary objective of the Audit & Risk Committee (ARC) is to provide the Board of Directors with effective support in financial matters, in particular the selection and supervision of the external auditor, assessment of the effectiveness, complianceand clarity of the Group financial reporting and the assessment and preparation of the financial reports to the shareholders.
Furthermore, it reviews critical accounting policies, financial control mechanisms and compliance with corresponding laws
and regulations as well as the development and continuous improvement of the internal control system. If required, the external Group auditors are invited to participate at the meeting. The ARC prepares proposals to be decided by the Board of
Directors. In the completed financial year, three half-day meetings were held.
– The Nomination & Compensation Committee (NCC) deals with succession, recruitment and compensation of the membersof the Board of Directors and the Executive Management. It ensures and monitors the personnel development plan and adequate succession planning for the middle and top management. It supports the Board of Directors in establishing and reviewing the compensation strategy and guidelines and the performance objectives as well as in preparing the proposals to besubmitted to the General Meeting regarding the compensation of the Board of Directors and of the Executive Management. It
reviews and updates the compensation policy for the members of the Board of Directors and the Executive Management andthe performance-based compensation system for the Executive Management. The NCC prepares proposals to be decided
by the Board of Directors. In the completed financial year, four half-day meetings were held.
– The primary objective of the Strategy Committee (SC) is to assist the Board of Directors in fulfilling its duties with respect todetermining the Company’s strategy and the appropriate means to pursue it, including LEM’s organizational setup. As strategic work and its successful implementation is based upon coordinated and interlocking activities between Executive Management and the Board of Directors, the SC ensures close collaboration with the CEO and the Executive Management. The
SC prepares proposals to be decided by the Board of Directors. The Board of Directors may also decide to delegate membersof the SC to assist in steering longer-term strategic initiatives by joining the project steering committee. In the completed
financial year, one half-day meeting and seven video conferences were held.

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Frank Rehfeld

Andrea Borla

Rodolphe Boschet

Rebecca Cullinan

Rainer Bos

4.
Executive Management
The Executive Management was comprised of the following members as of 31 March 2022:

Frank Rehfeld
Nationality German
Born in 1968

Function
CEO

Previous companies and positions

With LEM since2016– 2009 – 2015, VP Drives, Brose China Co., Ltd.

– 2016 – 2018, SVP Industry, LEM Group– 2006 – 2009, Managing Director, Hella Shanghai Electronics Co., Ltd.
– 2004 – 2006, Siemens VDO China, Director Body/Chassis Electronics– 1996 – 2004, Siemens VDO Germany, Director R&D Body/Chassis Electronics
Education– Dipl. Eng. Electrical Engineering, Erlangen-Nuremberg, Germany

Andrea Borla
Nationality Swiss
Born in 1967

Function
CFO

Previous companies and positions

With LEM since2015– 2003 – 2007, Field Operations Manager, Schindler China– 2008 – 2015, CFO, Schindler France– 1999 – 2003, Area Controller, Schindler Asia Pacific– 1996 – 1999, Head of Group Consolidation, SAirGroup
Education– Ph.D., M.A. HSG, Finance and Accounting, St. Gallen, Switzerland

Rodolphe Boschet
Nationality French
Born in 1967

Function
CHRO

Previous companies and positions

With LEM since2020– 2016 – 2019, Senior Vice President HR & Communications, Beckman Coulter– 2019 – 2020, VP HR integration, Danaher– 2013 – 2016, Global Vice President HR & Communications, Radiometer– 2006 – 2013, Head of HR France, Europe, Chemistry Business Unit, Beckman Coulter– 2002 – 2006, HR Manager Europe, Datascope Corp
– 1997 – 2002, International HR Manager, Cartier
Education– Masters of Political Science, Paris Sorbonne, France– Masters in International Human Resources Management, ENS Cachan, France

Rebecca Cullinan
Nationality British
Born in 1970

Function
Senior Vice President
Industry

Previous companies and positions

With LEM since2019– 2015 – 2018, Managing Director, South East Asia, Valeo– 2018 – 2019, Managing Director, South Europe, Middle East & Africa,
Automotive Lighting/Magnetti Marelli– 2002 – 2015, Various Management Position, France, Valeo– 1998 – 2002, Senior Consultant, UK, IHS Global Insight
Education– MBA University of Westminster UK, BSc in Mechanical Engineering,
Jiangsu University China

Rainer Bos
Nationality German
Born in 1962

Function
Senior Vice President
Automotive

Previous companies and positions

With LEM since2015– 1991 – 1999, Key Account Manager, Continental-Teves KGaA

– 2011 – 2015, General Manager, Amphenol Tuchel Electronics GmbH
– 2001 – 2011, Business Unit Director, Delphi Deutschland GmbH
Education– Dipl. Eng. Industrial Engineering, TU Darmstadt, Germany

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Corporate governancereportNone of the members of the Executive Management have other activities in governing or supervisory bodies, any official functions or political posts nor any permanent management functions for important Swiss and foreign interest groups.
External mandates
Pursuant to Article 31 of the Articles of Incorporation, and subject to approval by the Board of Directors, members of the Executive Management may not hold more than three additional mandates of which no more than one may be in listed companies.
The following mandates are not subject to the above limitations: (a) mandates in companies which are controlled by LEM or
which control LEM; (b) up to five mandates held at the request of LEM or companies controlled by it; and (c), subject to approval by the Board of Directors, up to three mandates in associations, charitable organizations, foundations, trusts and employee
welfare foundations. Mandates shall mean mandates in the supreme governing body of a legal entity, which is required to beregistered in the commercial register or a corresponding foreign register. Up to 20 mandates in different legal entities which
are under joint control or same beneficial ownership are deemed one mandate.
Management contracts
There are no management contracts with companies or individuals outside LEM Group.

5.
Compensation
Please refer to the compensation report on page 54.

6.
Shareholders’ participation rights
The rules on shareholders’ participation rights are outlined in the Articles of Incorporation. The rules for the convening ofGeneral Meetings, the participation rights and the majority rules for decisions all follow Swiss law. The complete Articles ofIncorporation can be downloaded from the Investor Relations pages on the website. http://www.lem.com/images/stories/files/
HQ/en/Investors/AGM Docs/2014/LEM_Holding_SA_Articles_of_Association_26062014.pdf
Voting rights and representation restrictions and inscription in the share register
There are no limitations on voting rights for shareholders who are entered into the shareholders’ register with voting rights.
Anyone purchasing registered shares is registered by the Board of Directors in the share register on request as a shareholder
with voting rights, provided he/she expressly declares that the shares have been bought and will be held for their own account.
Each shareholder may be represented by the independent representative or by a third party who need not be a shareholder
of LEM HOLDING SA.
Statutory quorums
The Articles of Incorporation contain no deviation from the applicable law. In case a second vote is necessary for elections, arelative instead of the absolute majority of the votes represented is required.
Convocation of the General Meeting of the Shareholders
Registered shareholders are convened to General Meetings by ordinary mail and by publication in the Swiss Official Gazette ofCommerce at least 20 calendar days prior to the day of the meeting.
AgendaAccording to Article 12 of the Articles of Incorporation, one or several shareholders who collectively hold 10 % of the sharecapital can call for a shareholders’ meeting and submit matters to be placed on the agenda.

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Corporate governancereportDividend policy
LEM targets a payout ratio significantly above 50 % of the consolidated net profit for the year, to be proposed by the Board of
Directors to the Annual General Meeting.

7.
Change of control and defensive measures
Opting-out clause
Any shareholder is released from the obligation to submit a public takeover offer to all shareholders if his participation in LEM
exceeds 33 1/3 % of the voting rights.
Clauses on changes of control
There is no particular clause in the Articles of Incorporation for changes of control. No member of the Executive Management
will receive additional severance payments if dismissed in the case of a change of control of the Company.

8.
Auditors
The duration of the auditors’ mandate is one year. Ernst & Young has been auditing LEM since the financial year 2005/06, with
Daniel Zaugg bearing the responsibility for the audit since 2021/2022. As required by law, the auditor-in-charge is changed every
seven years. Ernst & Young audits the Group’s consolidated financial statements as well as all of LEM’s Group companies in Switzerland and abroad that are subject to a statutory audit requirement. The audit fees and fees for additional services are as follows:
Type of service
In CHF thousands

Audit fees

2021/222020/21

386

338

386

379

Additional audit-related fees

41

Total

The Audit Committee evaluates and controls the performance (focus on areas that involve significant risk to LEM, ability toprovide effective and practical recommendations, open and effective communication and coordination), fees, and independence of the auditors each year. It discusses and reviews the scope of the audits, and the resulting feedback. Based on thisinformation, it determines which changes and improvements are necessary. The auditor’s report on the results of their audits
both orally and in writing. Financial statements as well as management letters are discussed in the ARC in the presence of theexternal auditors. During 2021/22 Ernst & Young attended two regular ARC meetings.

9.
Information policy
LEM informs its shareholders about the business status and its results on a quarterly basis in the form of press releases. These,
together with the Annual Review and Financial Report, are made publicly available on its website (http://www.lem.com/en/
investors) and may be obtained in printed form from the company’s headquarters. Once a year, LEM holds a presentation forthe media, investors and financial analysts. Internal processes assure that price-sensitive facts are published without delay inaccordance with the ad hoc publicity rules of the SIX Swiss Exchange. At www.lem.com, detailed information is available, e.g.,
the Articles of Incorporation, interim and annual reports, investor presentations, press releases as well as the financial calendar.
Contact for investors and media: Andrea Borla, CFO, Route du Nant-d’Avril 152, CH–1217 Meyrin,
or send an e-mail to investor@lem.com (phone: +41 22 706 12 50).

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Compensation report

The future of LEM depends on our ability to attract, develop and retain talented people. Among the many measures we
use to achieve this goal are competitive compensation policies. Our compensation policies are designed to align the interests of the Executive Management and the Board of Directors with the interests of Shareholders.
In brief
Core principles
LEM’s compensation policies are designed to reward results and performance as well as to create long-term value for Shareholders. The compensation policies are reviewed on an annual basis.
LEM’s Articles of Incorporation (www.lem.com/en/Investors > Corporate Governance) contain provisions regarding the approvalof compensation of the Board of Directors (BoD) and the Executive Management (Article 27), the supplementary amount for
new members of the Executive Management (Article 28), the general compensation principles (Article 29) as well as provisions
regarding the agreements with members of the Board of Directors and the Execu-tive Management (Article 30).
This Compensation Report is based on section 5 of the annex to the Corporate Governance Directive issued by SIX Exchange
Regulation AG and Articles 13 to 17 of the Ordinance Against Excessive Compensation in Listed Stock Companies (OaEC).
Compensation of the Board of Directors
The compensation of the Board of Directors consists exclusively of a fixed fee paid in cash. There is no variable compensation.
The compensation of the Chairman and the members of the Board of Directors depends on the responsibility of each member
and the related work, such as serving on committees of the Board of Directors.
Compensation of the Executive Management
To encourage and reward results that contribute to the sustainable success of LEM, the total compensation of the Executive
Management consists of three elements: base salary, variable compensation and non-wage compensation. The target-setting
process for the variable compensation is carried out on an annual basis and includes quantitative and qualitative performance
criteria, including LEM’s financial results.
Members of the Executive Management are entitled to attend the meetings of the Board of Directors relevant to their function
but are excluded from any deliberation and decision on their compensation.
The compensation authorities are summarized in the following table:
Beneficiary

Compensation element

ProposalApproval

Board of Directors (BoD) and
Executive Management

Compensation principles

Nomination and Compensation
Committee (NCC)

BoD within limits of Articles
of Incorporation

BoD

Aggregate maximum amount
fixed compensation

BoD based on NCC proposal

Annual General Meeting(prospective approval)

BoD

Individual compensation

NCC

BoD

Executive Management

Aggregate maximum amount
fixed annual base salary

BoD based on NCC
proposalAnnual General Meeting(prospective approval)

Executive Management

Aggregate amount short-term
incentive

BoD based on NCC
proposalAnnual General Meeting(retrospective approval)

Executive Management

Aggregate maximum amountlong-term incentive

BoD based on NCC
proposalAnnual General Meeting(prospective approval)

Executive Management

Individual compensation

NCC based on proposal from CEO

BoD

CEO

Individual compensation

Chairman of the BoD

BoD

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Compensation report1.
Board of Directors
1.1
General principles of compensation for members of the Board of Directors
The aggregate maximum compensation of the Board of Directors is approved by the Annual General Meeting upon proposal by
the Board of Directors based upon recommendation from the Nomination & Compensation Committee. The remuneration of theBoard of Directors consists of a fixed cash payment and is reviewed on an annual basis. The remuneration compensates for the
personal responsibility and exposure as member of the Board of Directors and the work related to the Board of Directors’ membership. There is neither a variable compensation nor any participation in an equity-based compensation plan.
1.2 Compensation for members of the Board of Directors
The Board of Directors adopted a remuneration scheme with a fixed membership fee payable in cash of gross CHF 250’000 for
the Chairman and gross CHF 80’000 for each member of the Board of Directors. Activities in committees of the Board of Directors
is compensated by membership fees of gross CHF 40’000 for the Committee’s Chairman and gross CHF 20’000 for each member.
The tables below show the compensation per member of the Board of Directors in the financial years 2020/21 and 2021/22
for their respective term of office. At the Annual General Meeting held on 24 June 2021, the shareholders approved a maximum
compensation amount for the term of office from the Annual General Meeting 2021 until the Annual General Meeting 2022 of CHF
1’100’000. The actual costs for the Company are CHF 946’000.

2021/22
In CHF thousands

Annual fees (A)Taxes, social security
charges and similar
contributions (B)Total (A) + (B)Andreas Hürlimann 1, 5, 6

310

27

337

Ueli Wampfler 2

120

11

131

Ulrich Jakob Looser 3, 4

140

13

153

Ilan Cohen a

100

7

107

Werner C. Weber 7

100

9

109

François Gabella 7

100

9

109

Total

870

76

946

Annual fees (A)Taxes, social security
charges and similar
contributions (B)Total (A) + (B)Andreas Hürlimann 1, 5, 6

310

27

337

Ueli Wampfler 2

120

11

131

Ulrich Jakob Looser 3, 4

140

13

153

Ilan Cohen 7, a

100

9

109

Werner C. Weber 7

100

9

109

François Gabella 7

100

9

109

Total

870

78

948

2020/21
In CHF thousandsa including the amount of CHF 20’000 for R&D contribution

4 Chairman of the Nomination & Compensation Committee

1 Chairman of the Board of Directors

5 Member of the Nomination & Compensation Committee

2 Chairman of the Audit & Risk Committee

6 Chairman of the Strategy Committee

3 Member of the Audit & Risk Committee

7 Member of the Strategy Committee

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Compensation report

2.
Executive Management
2.1 General principles of compensation for members of Executive Management
The aggregate maximum compensation of the Executive Management is approved by the Shareholders at the Annual General
Meeting upon proposal by the Board of Directors. The proposals of the Board of Directors are based on NCC recommendation.
The compensation of the Executive Management is reviewed by the Board of Directors on an annual basis.
The total compensation of the Executive Management is composed of the following elements:
Compensation element

Instrument

PurposeDrivers

Range and cap

Shareholder approvalBase salaryMonthly cash
payments

Pay for the function

Scope and responsibilities, profile and competencies

N/A

Prospective maximum
amount (October –September)

Short-term incentive

Annual cash
payment

Pay for annual
performance

Business and individual
performance throughout the financial year

0% – 139% oftarget amount

Retrospective

Long-term incentive

Annual cash
payment

Participation insustainable company
success, alignment with
Shareholder interests

Achieved value creation
over three consecutive
financial years

0 % – 200 % oftarget amount

Prospective maximum
amount for payout
three years later

Non-wagecompensation

Pensioncontributions

Protect against risks
plus retirement anddependents’ coverage

Local legislation andmarket practice

N/A

The total compensation is in line with the market for comparable industrial companies considering the various remunerationlevels for different functions and locations. Furthermore, the compensation mix between base salary, variable compensationand non-wage compensation reflects sectorial and functional market practice. The full Board of Directors periodically reviews,
sets and approves the compensation system, based on the recommendation of the NCC. The latest external benchmark was
performed early 2022 with the support of Mercer. The Mercer IPE (International Position Evaluation) has been used to define
the peer group, which allows comparability between companies based on revenues, number of employees and business value
chain.
2.1.1 Base salary of Executive Management
Base salaries are paid monthly as fixed cash amounts.
2.1.2 Variable compensation of Executive Management
The target-setting process for the Leadership-for-Results (L4R) plan is part of the LEM performance management and is carried out on an annual basis by the NCC. All variable compensation is paid in cash and after approval by the Shareholders. The
Chairman of the Board of Directors (for the CEO) and the NCC (for the other members of the Executive Management) prepare
objectives and performance evaluations based on personal performance review.
Short-term incentive related to the Executive’s function, responsibility and obtained results
Each Executive’s individual target amount for the short-term incentive plan is communicated to the Executive at the beginningof the financial year together with the objectives and their weighting. The target amount and the objectives are based on therole and impact of the Executive as well as annual company priorities. Objectives are linked to audited financial indicators suchas EBIT and Net Profit, other quantitative indicators as well as qualitative targets based on strategic initiatives. At the end of theyear, the performance on each objective is evaluated resulting in the total amount to be paid.

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Compensation report

The number of objectives is large enough to allow each Executive to reach a fair level of short-term variable compensation rewarding for the results achieved even under changed business conditions. Since the degree of achievement of set objectives
has to be evaluated at the end of the period, a clear understanding of the metrics to be applied is established at the time oftarget setting and kept constant over the period. For each objective, the curve between minimum and maximum bonus level isdefined. Ambitious but achievable objectives are set as targets, at which 100% of the respective target amount is attributed.
For the Executive Management, the minimum payout of the short-term incentive is 0% of the target amount and the weighted
maximum payout is 139%. The target amount of the short-term incentive represents between 16% and 24% of the total target
compensation.
The short-term incentive payout is presented for retrospective approval to the Shareholders along with the Annual Report andthe financial statements of the same financial year at the Annual General Meeting 2022 prior to being paid out.
Long-term incentive related to the sustainable financial performance of LEM GroupThe long-term incentive is defined as an annual target amount and is based on the performance of LEM evaluated over a periodof three consecutive financial years (2019/20 – 2021/22). The performance criterion is the cumulated Economic Value Added(EVA) over these three financial years. The Board of Directors defines the EVA objective at the beginning of year one and theevaluation of the performance takes place at the end of year three. Once the forward-looking EVA objective is defined, this EVA
objective remains unchanged over the three-year period.
For the Executive Management, the minimum payout of the long-term incentive is 0% of the target amount and the maximum
payout is 200%. The target amount of the long-term incentive represents between 11% and 20% of the total target compensation.
For the long-term incentive cycle 2019/20 to 2021/22, the maximum amount approved prospectively by the Shareholders at
the Annual General Meeting in 2019 is CHF 1’000’000 for payout in 2022.
2.1.3 Non-wage compensation of Executive Management
For the Executive Management, non-wage compensation consists of pension plans (retirement benefits) only.
The Executive Management benefits from LEM’s Swiss pension plan, considered a defined contribution plan under Swiss lawthat provides retirement benefits and risk insurance for death and disability. IFRS, on the contrary, considers this plan as a defined benefits plan. The insured base salary follows Swiss professional pension regulations without limitation of the amount.
The pension fund is funded by contributions from the company and the respective insured Executive.

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Compensation report

2.2 Remuneration of Executive Management

2021/22

In CHF thousands

Base salaryFrank Rehfeld, CEO

Short-term
incentive

Long-term
incentive

Company’scontribution
to pension fundTotalcompensation

Company’scontribution tosocial security
charges

500

328

295

51

1’174

117

Executive Management (excl. CEO)

1’302

589

533

129

2’553

255

Total

1’802

917

828

180

3’727

372

Long-term
incentive

Company’scontribution
to pension fundTotalcompensation

Company’scontribution tosocial security
charges

2020/21

In CHF thousands

Base salary2

Frank Rehfeld, CEO

Short-term
incentive

525

308

226

48

1’107

106

Executive management (excl. CEO) 1

1’165

587

314

118

2’182

207

Total

1’690

895

540

166

3’289

313

1 including CHRO (pro-rated 6.3 months)
2 Exceptional payments to compensate for unused vacation entitlements during the Covid 19 Pandemic

The amounts are shown as follows:– Base salary: CHF 1’802’000 as paid out in the reporting period.
– Short-term incentive 2021/22: CHF 917’000 as proposed to the Annual General Meeting on 30 June 2022 for payout in July2022.
– Long-term incentive: CHF 828’000 as accrued for Long-Term incentive 2021/22.
– Pension fund contributions: CHF 180’000 as accrued for or paid during the reporting period.
– Company’s contributions to social security charges: CHF 372’000 as accrued for or paid during the reporting period.
Amounts approved by previous Annual General Meetings related to the period reported above:– Maximum amount base salary (for the period from 1 October 2020 to 30 September 2021): CHF 1’830’000– Maximum amount base salary (for the period from 1 October 2021 to 30 September 2022): CHF 2’600’000– Short-term incentive amount for 2020/21 for payment in 2021: CHF 984’332– Maximum amount long-term incentive 2019/20 to 2021/22 for payment in 2022: CHF 1’000’000– Pension fund contribution and company contribution to social security charges as paid out or accrued for in the reporting
period are included in the above amounts.
The overall variable remuneration paid out for 2021/22 to the Executive Management ranged from 37% to 53% of the totalcompensation.

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Compensation report3.
Loans to current and former members of the Board of Directors and Executive Management and related parties
Our Articles of Incorporation do not provide the basis to grant loans to current or former members of the Board of Directors,
the Executive Management or to any related party. Therefore, no loans have been granted in the financial years 2020/21 and2021/22 or in any previous year.
Outlook for financial year 2022/23 and onwards
During 2021/22, the NCC has conducted a fundamental review of LEM’s long-term incentive with the goal of further strengthening– the link between pay and performance by adding an external perspective to the current internally focused view on company
value creation;– the loyalty of key employees to LEM by giving them the opportunity to directly participate in LEM’s sustainable success via
an equitybased plan; and– the alignment of interests with shareholders.
As of 2022/23, the Board of Directors has decided to replace the current cash-based long-term incentive of LEM’s Executive
Management by a share-based Performance Share Unit (PSU) plan.
Going forward, members of LEM’s Executive Management will receive an annual PSU award which vests in LEM shares uponcompletion of a three-year plan cycle. The number of shares obtained per PSU can thereby vary between 0% and 200% of
the award, subject to continuous employment and depending on the achievement of pre-agreed performance conditions.
Further, forfeiture rules in case of an exit and the current clawback regulations will continue to apply. The LEM shares for the
purposes of this new sharebased PSU plan will be acquired on the market. This will not dilute existing shareholders’ interestsin the company.
The performance conditions will include:– EVA: to account for an internal view on value creation;– Absolute TSR: to link the overall compensation directly to the absolute value created by LEM for its shareholders; and– Relative TSR: to strengthen the appreciation of a participant’s contribution to the company’s success based on LEM’sperformance compared to the market.
The targets for these performance conditions will be proposed by the NCC and ultimately approved by the Board of Directors
on an annual basis, following a stringent target setting process.
More details on the underlying functionality of the plan will be disclosed in the Compensation Report 2022/23 following thefirst grant under this plan, which is anticipated to take place in 2022.
Further, as of 2022/23, each member of the Executive Management will be required to build up an investment in LEM sharesworth the equivalent of 150% of the annual base salary for the CEO, 140% for the CFO, and 80% for other members of the
Executive Management.
Members of the Executive Management will have a five-year period to achieve the above shareholding targets. In case ofnon-compliance, restrictions on the sale of owned shares and post-vesting holding requirements for shares vesting in the near
future under the new sharebased PSU plan will apply. All vested shares directly or indirectly owned by a member of the Executive Management and related parties, as well as granted but yet unvested PSUs under the LEM’s long-term incentive, will betaken into account when assessing whether or not the shareholding requirements are met.

LEM Financial Report 21 | 22

Page 59

Auditor’s report

Report of the statutory auditor on the compensation report
We have audited the compensation report of LEM Holding SA for the year ended 31 March 2022. The audit was limited
to the information according to articles 14–16 of the Ordinance against Excessive Compensation in Stock Exchange
Listed Companies (Ordinance) contained in the tables labeled “audited” contained in the note 1.2 on page 55 and onnote 2.2 on page 58 of the compensation report.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation and overall fair presentation of the compensation report inaccordance with Swiss law and the Ordinance. The Board of Directors is also responsible for designing the compensation system and defining individual compensation packages.
Auditor’s responsibility
Our responsibility is to express an opinion on the compensation report. We conducted our audit in accordance with
Swiss Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the compensation report complies with Swiss law and articles
14–16 of the Ordinance.
An audit involves performing procedures to obtain audit evidence on the disclosures made in the compensation reportwith regard to compensation, loans and credits in accordance with articles 14–16 of the Ordinance. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material misstatements in thecompensation report, whether due to fraud or error. This audit also includes evaluating the reasonableness of themethods applied to value components of compensation, as well as assessing the overall presentation of the compensation report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
OpinionIn our opinion, the compensation report for the year ended 31 March 2022 of LEM Holding SA complies with Swiss law
and articles 14–16 of the Ordinance.
To the General Meeting of LEM Holding SA, Meyrin
Geneva, 18 May 2022
Ernst & Young Ltd

Daniel Zaugg
Licensed audit expert(Auditor in charge)

Yevgenii Garnaga

LEM Financial Report 21 | 22

Page 60

LEM HOLDING SALEM Financial Report 21 | 22

Page 61Balance sheet(before distribution of earnings)

AssetsIn CHF thousands

Notes

31.3.2022

31.3.2021

1’287

3’315

4

398’056

98’897

2’695

1’912

Current assets
Cash and cash equivalents
Loans to affiliated companies
Current assets from affiliated companies
Other current assets

94

57

Other current assets from affiliated companies

055’368402’132

159’549

Total current assets
Noncurrent assets

37’55041’930Total noncurrent assets

Investments in affiliated companies

1

37’55041’930Total assets

439’683

201’480

31.3.2022

31.3.2021

40’65024’000443

48’521

Liabilities and equity
Notes

In CHF thousands

Current liabilities
Current financial liabilities
Loans from affiliated companies

4

Current liabilities from affiliated companies

78

77

Other current liabilities

2’222

3’197

Total current liabilities

43’39375’796EquityShare capital2

Legal reserves
Free reserves

570

570

285

285

– balance carried forward

78’10568’465– profit for the year318’308

57’520Treasury shares(977)(1’156)

Total equity

396’290

125’684

Total liabilities and equity

439’683

201’480

LEM Financial Report 21 | 22

3

Page 62

Income statement

IncomeIn CHF thousands

Dividend from affiliated companies

Notes

2021/222020/215

321’671

54’544

4’447

2’768

1’719

2’075

Interest income from affiliated companies
Foreign exchange gain

6

Other financial income
Other income from affiliated companies
Total income

53

442

2’288

30’906330’178

90’7352021/222020/21

ExpenseNotes

In CHF thousands

Administration and other expenses
Participations’ impairment(4’924)(4’400)1(4’380)(26’260)

(247)

(256)

6

(2’208)(1’798)(11’760)(32’714)318’41958’022Financial expense
Foreign exchange loss
Total expense
Profit before taxes
Income taxes

7

Net profit for the year

LEM Financial Report 21 | 22

Page 63

(111)

(501)

318’308

57’520Notes to thefinancial statements

Principles for the establishment of the financial statements
The accompanying financial statements have been prepared in accordance with the requirements of the Swiss Code of Obligations. Regarding the inclusion of LEM HOLDING SA in the consolidated financial statements, the accounting and reporting
principles described in the notes to the consolidated financial statements apply. In agreement with the article 961d of the Codeof Obligations, the Company does not present the additional information in the notes to the annual accounts, the cash flow
statement and the management report.
LEM HOLDING SA does and did not have any employees.

1.

Investments in affiliated companies
31.3.2022

In CHF thousands

31.3.2021

Historical cost minus impairment

37’55041’930Total

37’55041’930Last year, in the context of Covid-19 uncertainty, some participations were impaired (for a total of CHF 26.3m).
This year, with LEM Intellectual Property SA under liquidation, the participation was impaired by CHF 4’4m.

2.

Share capital

Opening capital 1.4.2021

Number ofsharesPar value pershare in CHF

Capital in CHF
thousands

1’140’000

0.50

570

0.50

570

Change of capital0

Closing capital 31.3.2022

3.

01’140’000

Treasury shares
Price per share in CHF
NumberHigh

Average

Low

Value in CHF
thousands

Value 1.4.2020

556

Purchases at cost

7’846

1’940.38

1’595.19

1’002.10

12’516(7’794)

1’970.22

1’532.01

1’011.32(11’940)

Sales at cost

581

Value 31.3.2021

608

Purchases at cost

6’936

2’670.00

2’112.59

1’634.18

14’653(7’095)2’670.00

2’090.42

1’657.40(14’832)

Sales at cost
Value 31.3.2022

1’156

449

Subsidiaries of LEM HOLDING SA did not own any shares of LEM HOLDING SA.
Treasury shares are valued at the lower of cost or market value.

LEM Financial Report 21 | 22

Page 64977

Notes to thefinancial statements

4.
Loans from/to affiliated companies
LEM Intellectual Property SA being under liquidation per 31 March 2022, all assets and liabilities were transferred to LEM
HOLDING SA. As a result, LEM HOLDING SA took over LEM Intellectual Property SA’s loan to LEM International SA amounting to
CHF 287m and reimbursed its debt to LEM Intellectual Property SA by CHF 48m.

5.

Dividend from affiliated companies

In 2021/22, the dividend from affiliated companies amounts to CHF 321.7m coming mainly from LEM Intellectual Property SA.

6.

Exchange effect2021/22

In CHF thousands

Exchange gains/(losses)

2020/21(1’270)764

837(1’133)

Gains/(losses) on derivatives 1

(57)

647

Exchange effect

(489)

277

In CHF thousands

2021/222020/21

Current taxes

(383)

(501)

Fair value revaluation on derivatives 1

1 Position includes cost of derivative hedging.

7.

Income taxes

Adjustments of tax provisions of previous periods *Total* From fiscal year 2018/19

LEM Financial Report 21 | 22

Page 65

271

0

(111)

(501)

Notes to thefinancial statements

8.
Significant shareholders according to article 663c of the Swiss Code of Obligations
On 31 March 2022, the following shareholders held 3% or more of the share capital and voting rights:
31.3.2022

31.3.2021

SharesIn %SharesIn %Werner O. Weber and Ueli Wampfler, in Zollikon/Wollerau, Switzerland, through WEMACO
Invest AG and Voltano AG in Cham, Switzerland

584’700

51.3 %

582’600

51.1 %

Ruth Wertheimer, in Kfar Shmaryahu, Israel, through 7-Industries Holding B.V., in Amsterdam, Netherlands

34’381

3.0 %36’381

3.2 %

n.a.

3 %–5 %1

n.a.

3 %–5 %1

36’5503.2 %36’250

3.2 %In number of shares, percent of shareholding

Capital Group Companies Ltd., Los Angeles, USA
J. Safra Sarasin Investmentfonds AG, Basel, Switzerland

1 Capital Group disclosed a 3.02% stake as of 31 August 2020, but did not report the exact number of LEM shares per 31 March 2021 and 31 March 2022

9.

Guarantees in favor of third parties on behalf of subsidiaries
31.3.2022

31.3.2021

1’855

1’814

31.3. 2022
Number ofshares held

31.3.2021
Number ofshares held

Andreas Hürlimann

1’001

1’001

François Gabella

600

600

Ilan Cohen

300

300

72’70070’600Ulrich Jakob Looser

300

100

Werner C. Weber0074’90172’601

31.3. 2022
Number ofshares held

31.3.2021
Number ofshares held

Frank Rehfeld, CEO

00Andrea Borla, CFO

00Rodolphe Boschet, CHRO

00

Rebecca Cullinan, SVP Industry

00Rainer Bos, SVP Automotive

0

0

Total

0

0

In CHF thousands

Amount of guarantees issued

10.

Shareholdings

Shareholdings of nonexecutive Directors

Ueli Wampfler

Total

Shareholdings of Executive Management

LEM Financial Report 21 | 22

Page 66

Notes to thefinancial statements

Proposed appropriation of available earnings
31.3.2022

31.3.2021

Balance brought forward from previous year

78’10568’465

Treasury shares from previous year

(1’156)(581)

In CHF thousands

Variation of treasury shares

179

(575)

Net profit for the year318’308

57’520Total available earnings

395’436

124’829

Ordinary dividend(57’000)(47’880)

Balance to be carried forward

338’436

76’949Proposal of the Board of Directors

The Board of Directors proposes the distribution of an ordinary dividend of CHF 50 per share. Net of 35% withholding tax, thisis an ordinary cash dividend of CHF 32.5 per share.
The proposed appropriation of available earnings is made in compliance with article 671 of the Code of Obligations.
Shares held by LEM HOLDING SA or any of its subsidiaries are not entitled to dividends.

LEM Financial Report 21 | 22

Page 67

Auditor’s report

Report of the statutory auditor on the financial statements
As statutory auditor, we have audited the financial statements of LEM Holding SA, which comprise the balance sheet,income statement and notes (pages 62 to 67), for the year ended 31 March 2022.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law and the company’s articles of incorporation. This responsibility includes designing, implementing
and maintaining an internal control system relevant to the preparation of financial statements that are free from material
misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and applying
appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit inaccordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, theauditor considers the internal control system relevant to the entity’s preparation of the financial statements in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of
the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall
presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the financial statements for the year ended 31 March 2022 comply with Swiss law and the company’s articles of incorporation.
Report on key audit matters based on the circular 1/2015 of the Federal Audit Oversight Authority
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. We have determined that there are no key audit matters to communicate in our report.

LEM Financial Report 21 | 22

Page 68

Auditor’s report

Report on other legal requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) andindependence (article 728 CO and article 11 AOA) and that there are no circumstances incompatible with our independence.
In accordance with article 728a para. 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal
control system exists, which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.
To the General Meeting of LEM Holding SA, Meyrin
Geneva, 18 May 2022
Ernst & Young Ltd

Daniel Zaugg
Licensed audit expert(Auditor in charge)

Yevgenii Garnaga

LEM Financial Report 21 | 22

Page 69

Group subsidiaries

LEM is a global player with production plants and development centers in Beijing (China), Geneva (Switzerland), Tokyo (Japan)
and Sofia (Bulgaria). The Company has a dedicated R&D Center in Lyon (France) and sales offices at all its customers’
locations and offers seamless service around the globe.
For a complete list of subsidiaries and offices, refer to www.lem.com > Contact > Sales Locator
Asia

EuropeLEM HOLDING SA
Chemin des Aulx 8
CH–1228 Plan-les-Ouates

LEM Europe GmbH, Branch Belgium
Egelantierlaan 2
B–1851 Humbeek

LEM Electronics (China) Co. Ltd
Linhe Street 28, Shunyi District
CN–101300 Beijing

LEM International SA
Route du Nant-d’Avril 152
CH–1217 Meyrin

LEM Europe Denmark,Filial af LEM Europe GmbH
Haraldsvej 60A,1.
DK–8960 Randers

LEM Japan KK
2–1–2 Nakamachi
JP-Machida, 194–0021 Tokyo

LEM Management Services Sàrl
Route du Nant-d’Avril 152
CH–1217 Meyrin
LEM Tech France SAS
Les Allées du Parc
Allée des Parcs 575/655
F–69800 Saint-Priest

LEM Europe GmbH,
Succursale France
Avenue Galois 15
F–92340 Bourg-la-Reine
LEM Europe GmbH,
Succursale Italia
Via V. Bellini 7
I–35030 Selvazzano Dentro, PD

LEM Europe GmbH
Frankfurter Straße 74
D–64521 Groß-Gerau
LEM Europe GmbH, Branch Austria
Concorde Business Park 2/F/6
A–2320 Schwechat

LEM Europe GmbH,
Branch UK
Suite 10 West Lancs Investment
Centre Mapleview
Whitemoss Business Park
UK-Skelmersdale WN8 9TG
LEM Bulgaria EOOD
Iliensko Shosse 8
BG–1220 Sofia

LEM Management Services Sàrl,
Branch India
Level 2, Connaught Place
Bund Garden Road
IN–411 001 Pune
LEM Management Services Sàrl,
Branch Korea
Seocho-Dong
Wonil Bldg.1–3F (311) 10
Nambushuhwan-Ro 333-Gil
Seocho-Gu
KR-Seoul
LEM Management Services Sàrl,
Taiwan Branch
7F., No. 342, Wenlin Road
Shilindistrict
TWN–11163 Taipei

North America
LEM Russia, LLC
Staritskoe Shosse 15
RU–170040 Tver

LEM Financial Report 21 | 22

Page 70

LEM U.S.A., Inc.
11665 West Bradley Road
USA-Milwaukee, WI 53224

Copyright© 2022 LEM HOLDING SA,
GenevaConcept and text
LEM
Cabinet Privé deConseils SA, Geneva
Process AG, Zurich

DesignProcess AG, Zurich

PhotosMara Truog, Zurich

Printing
Druckprodukt, Zurich

LEM HOLDING SA
Route du Nant d’Avril 1521217 Meyrin
GenevaSwitzerland
www.lem.com

Financial Report 21 | 22