Financial Half Year Report21 | 22Contents		 LEM Group
3		

Interim consolidated statementof financial position

4

Interim consolidated income statement

5		Interim consolidated statementof comprehensive income

6		Interim consolidated statementof changes in equity

7

Interim consolidated cash flow statement

8		

Notes to the interim consolidated
financial statements

Interim consolidated statementof financial position

AssetsNotes

in CHF thousands

30.9.2021

31.3.2021

Current assets
Cash and cash equivalents

26’74822’418

Accounts receivable

78’49872’259Inventories

41’82641’7353’167

2’456Income tax receivable

11

Other current assets

4’864

2’950

Total current assets

155’104

141’818

Noncurrent assets
Property, plant and equipment

51’49650’387Right-of-use assets

6’274

7’253

Intangible assets

4’146

4’326

56’76459’741

Deferred tax assets

11

Other noncurrent assets

768

848

Total noncurrent assets

119’448

122’555

Total assets

274’551

264’373

30.9.2021

31.3.2021

Accounts payable

28’61827’092

Accrued expenses

27’77628’852

Lease liabilities

2’813

3’458

5’160

31’027

Liabilities and equity
Notesin CHF thousands

Current liabilities

Income tax payable

11

Current provisions

61’102889

Interest-bearing loans and borrowings

772’100

24’000

Other current liabilities

2’415

2’281

Total current liabilities

139’984

117’599

Noncurrent liabilities
Noncurrent lease liabilities

3’680

3’905

Noncurrent provisions

6

1’362

1’386

Deferred tax liabilities

113’943

3’409

Other noncurrent liabilities

8

2’285

6’175

Total noncurrent liabilities

11’27014’875

Total liabilities

151’254132’474

EquityShare capital

570

570

(1’316)(1’156)

Treasury shares

9Reserves

910’083

9’181

Retained earnings

9113’961

123’304

Total equity

123’298

131’899

Total liabilities and equity

274’551

264’373

LEM Financial Half Year Report 21 | 22Page 3

Interim consolidated
income statement

April to September
Notes

2021/222020/21in CHF thousands

Sales

183’665

144’078

Cost of goods sold(98’066)(78’557)

Gross margin

85’60065’521

Sales expenses(14’109)(12’823)

Administration expenses(14’251)(12’495)

Research & development expenses(15’216)(12’972)

Other income

90

1’11342’114

28’344

Financial expenses

(226)

(186)

Financial income

17785(329)109

41’73628’351

Operating profit

10Foreign currency exchange effectProfit before taxes
Income taxes(6’551)(4’955)

Net profit

1135’185

23’395

Earnings per share, in CHF
Basic & diluted earnings per share

30.87

20.53

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

LEM Financial Half Year Report 21 | 22Page 4Interim consolidated statementof comprehensive income

April to SeptemberNotes

2021/222020/2135’18523’395Currency translation difference

795

(489)

Income tax

(53)

57

Total other comprehensive income to be reclassified to profit and loss
in subsequent periods

742

(432)

3’905

(3’055)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

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

8

Income tax(518)428

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

3’387(2’627)

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

4’129(3’059)Total comprehensive income for the period

39’31420’336LEM Financial Half Year Report 21 | 22

Page 5

Interim consolidated statementof changes in equity

Attributable to shareholders
in CHF thousands

Notes

Share
capitalTreasurysharesCapitalreserve

Translation
reserve

Retainedearnings

Totalequity

1 April 2020

570

(581)

12’524(7’441)112’292

117’363

Net profit for the period
Other comprehensive income/(loss)(432)

Total comprehensive income(432)

Dividends paid

9

Movement in treasury shares923’395

23’395(2’627)(3’059)20’76820’336(45’580)(45’580)

(399)

399

(55)

(55)

30 September 2020

570

(980)

12’923(7’874)87’42692’065

1 April 2021

570

(1’156)13’099(3’917)123’304

131’899

35’18535’185

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

742

3’387

4’129

Total comprehensive income

742

38’57239’314(47’858)(47’858)

Dividends paid

9

Movement in treasury shares

930 September 2021

LEM Financial Half Year Report 21 | 22570

Page 6(160)160(1’316)

13’259(3’175)

(57)

(57)

113’961123’298

Interim consolidated
cash flow statement

April to SeptemberNotes

2021/222020/21

Profit before taxes

41’73628’351

Adjustment for noncash items

8’127

7’294

(30’035)(9’230)in CHF thousands

CASH FLOW FROM OPERATING ACTIVITIESInterest received/paid and taxes paid

11

Cash flow before changes in net working capital

19’82826’414

Cash flow from changes in net working capital(7’976)(12’048)

Cash flow from operating activities

11’85314’366

CASH FLOW FROM INVESTING ACTIVITIESInvestment in fixed assets(6’783)(6’647)

Investment in intangible assets

(76)

(91)

Increase in other assets

(53)

(74)

Decrease in other assets

131207(6’781)(6’605)

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

9(7’215)(4’878)Treasury shares divested

9

7’158

4’824

Payment of lease liabilities(1’165)(830)(47’858)(45’580)

Dividends paid to the shareholders of LEM HOLDING SA

9

Increase in financial liabilities

767’200

83’000Decrease in financial liabilities

7(19’100)(47’000)

Cash flow from financing activities(980)(10’465)

Change in cash and cash equivalents

4’092(2’704)

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 Half Year Report 21 | 22Page 7238

(158)

26’748

16’381

Notes to the interim
consolidated financial
statements
1.
General information
LEM Group (the Group) is a leading company in electrical measurement. LEM engineers best-in-class solutions for energy andmobility, ensuring that its customers’ systems are optimized, reliable and safe.
The parent company of LEM Group is LEM HOLDING SA (the Company), which is a limited company incorporated in Switzerland.

2.
Significant accounting principles
These unaudited consolidated financial statements for the six months ended on 30 September 2021 have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”. They do not include all the informationand disclosures presented in the annual consolidated financial statements and should therefore be read in conjunction withthose for the year ended 31 March 2021.
The accounting and valuation policies are consistent with those applied in preparing the annual consolidated financial statements for the year 2020/21.
The preparation of the interim consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and related disclosuresat the date of the interim financial statements. These estimates are based on management’s best knowledge of current eventsand actions that the Group may undertake in the future. However, actual results could differ from those estimates.
The financial information is presented in thousands of Swiss Francs (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 the original data.
Amendments in IFRS, effective as of January 2021, did not have a material impact on the consolidated interim financial statements. The Group has not adopted early any standard or amendment that has been issued but is not yet effective.

LEM Financial Half Year Report 21 | 22

Page 8

Notes to the interim consolidated
financial statements

3.
Exchange rates
The exchange rates for the most significant currencies are as follows:
Income statement of
2021/22

Income statement of
2020/21

Balance sheet
30.9.2021

Balance sheet
31.3.2021

Average rate in CHF

Average rate in CHF

Half-year rate in CHF

Year-end rate in CHF

BGN

0.557

0.546

0.553

0.566

CNY

0.141

0.134

0.145

0.144

DKK

0.147

0.143

0.145

0.149

EUR

1.090

1.068

1.082

1.106

Currency

GBP

1.270

1.192

1.257

1.298

JPY

0.00830.00880.00840.0085

MYR

0.220

0.221

0.223

0.227

RUB

0.012

0.013

0.013

0.012

USD

0.914

0.942

0.934

0.943

4.
Segment information
Business segment information
Industry

Automotive

LEM Groupin CHF thousands

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

Sales

143’586

112’601

40’08031’477

183’665

144’078

EBIT

37’64524’393

4’469

3’950

42’11428’344LEM Financial Half Year Report 21 | 22Page 9Notes to the interim consolidated
financial statements

5.
Revenue information
Regional information
Industry2021/22in CHF thousands

Automotive

2020/212021/222020/21

LEM Group2021/222020/21

Sales
China

50’30541’83019’62512’36269’93054’192Europe52’52239’088

4’688

3’650

57’21042’738

North America

13’133

10’861

3’718

3’300

16’851

14’161

Rest of World

27’627

20’822

12’04912’16539’67532’987

Total

143’586

112’601

40’08031’477

183’665

144’078

Geographical information
China
in CHF thousands

USAGermanyJapan

2021/222020/212021/222020/212021/222020/212021/222020/2169’93054’192

15’82413’34118’071

14’277

14’28211’647

Sales

Italy

Switzerland

Other countries

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

Sales

7’151

4’140

2’088

1’696

56’31944’784183’665

144’078

LEM Financial Half Year Report 21 | 22

Page 10in CHF thousands

Notes to the interim consolidated
financial statements

6.
Current and noncurrent provisions
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.
At 30 September 2021, the provisions decreased by CHF 0.3 million.
Litigations and consumption taxes
Despite the care that LEM applies in the separation process with personnel, such separation may result in legal conflicts. TheGroup will defend its case and management estimates the reasonable risk to be adequately 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 of 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 best judgment. Some of these positions
are inherently uncertain and include the interpretation of local regulations applied to complex transactions.
7.
Current financial liabilities
LEM Group increased its financial short-term liabilities to CHF 72.1 million (CHF 24.0 million at 31 March 2021) via short-term
credit lines in order to finance the CHF 47.9 million dividend payment of July 2021.
8.
Other noncurrent liabilities
The decrease of the noncurrent liabilities is mainly linked to the significant increase of the fair value of plan assets by CHF 4.1
million, impacting the other comprehensive income by CHF 3.9 million on a pre-tax basis and resulting from a high return onassets.
The slight increase of the retirement benefit obligations is mainly due to the discount rate decrease from 0.3% to 0.2%.
At 30 September 2021, the fair value of plan assets is lower than the defined benefit obligations resulting in a net pension
liability of CHF 0.4 million.
9.
EquityAt the shareholders’ meeting held in Geneva on 24 June 2021, the shareholders approved the distribution of an ordinary dividend of CHF 42.00 per share resulting in an estimated payout of CHF 47.9 million. The gross dividend effectively paid on 6 July
2021 amounted to CHF 47.9 million (prior year: ordinary dividend of CHF 40.00; total CHF 45.6 million).
In the frame of its market-making contract, LEM holds its own shares. At 30 September 2021, the Group held 577 shares(31 March 2021: 608).
10. Operating profit
Our sales increased by +27.5% to CHF 183.7 million in the first half of 2021/22; at constant exchange rates, this represents asales increase of +25.4%.
Our gross margin stood at 46.6%, slightly up from 45.5% in the first half of 2021/22, with an EBIT amounting to CHF 42.1 million(increase of +48.6% in the first half of 2021/22). Our operating profit margin for the first six months of 2021/22 was 22.9%,
compared with 19.7% a year earlier.

LEM Financial Half Year Report 21 | 22Page 11

Notes to the interim consolidated
financial statements

11. Income taxes
Income tax expense is calculated based on the best estimate of the applicable annual income tax rate expected for the full year.
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 withstandchallenge 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 taxpositions. 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.
At 15.7%, the tax rate slightly decreased compared to the first half-year 2020/21.
In 2019/20, the intellectual property from LEM Intellectual Property SA based in Fribourg was transferred to LEM International
SA based in Geneva and to LEM Electronics China Co. Ltd and generated additional income taxes which have been fully paid
during this half year 2021/22 for an amount of CHF 26.6 million.

LEM Financial Half Year Report 21 | 22Page 12

Notes to the interim consolidated
financial statements

12. Financial assets and liabilities
Financial assets
30.9.2021
Book value

31.3.2021
Book value

Amortized
cost

Cash and cash equivalents

26’74822’418X

Accounts receivable

78’49872’259X

Derivative financial instruments – current

74

10

Other current financial assets

14194

X
Xin CHF thousands

Other noncurrent financial assets

X768

848

106’229

95’62930.9.2021
Book value

31.3.2021
Book value

Other financial liabilities

Accounts payable

28’61827’092

X

Accrued expenses

27’77628’852

X

195

823

Other current financial liabilities

72’10024’000Total

128’689

80’767Total

At fair value
through profit andloss

Financial liabilities

in CHF thousands

Derivative financial instruments – current

At fair value
through profit andloss

XX

Changes in liabilities arising from financing activities

1.4.2020

in CHF thousands

Cash flows
InflowCash
impactNon-cash
impactCash flows(Outflow)

Fair valuechanges andOthers

30.9.2020

Interest-bearing loans and borrowings

9’000

83’000(47’000)

45’000

Total

9’000

83’000(47’000)

45’0001.4.2021

in CHF thousands

Cash flows
InflowCash
impactNon-cash
impactCash flows(Outflow)

Fair valuechanges andOthers

30.9.2021

Interest-bearing loans and borrowings

24’00067’200(19’100)

72’100Total

24’00067’200(19’100)

72’100LEM Financial Half Year Report 21 | 22Page 13

Notes to the interim consolidated
financial statements

The management assessed that the fair value level of cash and cash equivalents, accounts receivables, other current andnoncurrent assets, accounts payables, accrued expenses and other current and noncurrent liabilities that are not measured atfair value, approximate their carrying amounts in view of their short-term nature and are consequently not separately disclosed.
The Group enters into derivative transactions such as currency risk reversal and forward contracts to hedge the USD, 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.
The Group’s net financial liabilities at fair value amount to CHF 121 thousand per 30 September 2021 (net financial liabilities ofCHF 813 thousand per 31 March 2021), all classified under level 2.
During the last reporting period, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers
into and out of Level 3 fair value measurements.

13. Events after the balance sheet date
The Board of Directors and Senior Management are not aware of any significant events up to the date of approval of theinterim consolidated financial statements on 3 November 2021 that would require an adjustment in carrying amounts of theGroup’s assets and liabilities.

LEM Financial Half Year Report 21 | 22Page 14

Notes to the interim consolidated
financial statements

Financial calendar
The financial year runs from 1 April to 31 March
4 February 2022

Third-quarter results 2021/22

24 May 2022

Full-year results 2021/22

30 June 2022

Annual General Meeting of Shareholders for the financialyear 2021/22

5 July 2022

Dividend ex-date

7 July 2022

Dividend payment date

LEM Financial Half Year Report 21 | 22

Page 15

ContactAndrea Borla, Chief Financial Officer
Phone: +41 22 706 12 50
E-mail: investor@lem.com
Address
LEM HOLDING SA
Chemin des Aulx 81228 Plan-les-Ouates
Geneva, Switzerland
www.lem.com

LEM HOLDING SA
Chemin des Aulx 81228 Plan-les-Ouates
Geneva, Switzerland
www.lem.com

Financial Half Year Report 21 | 22