3rd Quarter Results
Year 2009/10
1
9 February 2010

Agenda

1. LEM at a Glance
2. Business Review
3. Financial Review
4. Outlook

2
9 February 2010

1. About LEM•

LEM is the global market leader in providing innovative and high quality
solutions for measuring electrical parameters•

The current and voltage transducers are used in a broad range ofapplications in industrial, traction, energy & automation and automotivemarkets•

LEM is a high growth global company with approximately 950 employees
Production plants are in Geneva (Switzerland), Copenhagen (Denmark),Machida (Japan), Beijing (China) and regional sales offices close to theclients locations•LEM is listed on the SIX Swiss Exchange since 1986
Market cap of CHF 320 million (as per 30.12.2009)3

9 February 2010

1. LEM Sales and Operations

4
9 February 2010

1. LEM at a Glance - Markets Served
Traditional Markets•Industry– All areas of reliable current
measurement– Motor drives, power conversion
AC/DC, power supplies, UPS,
welding, medical scanners, newenergies, leakage current, test &measurement•Traction & Trackside– on-board applications, inverters– Trackside and energy monitoring

New Markets•

Automotive– Battery Management (all car types)– Electric Motor Control (HEV-EV)•Energy & Automation– Process control– Battery Monitoring,Energy Metering

59 February 2010

2. Business Review

9 February 2010

2. Highlights Q3 2009/10
Rapid return to a strong market, Q3 up from Q2:• Q3 bookings of CHF 54.8 million, up 16.3%• Sales of CHF 48.3 million, up 11.8%• Gross margin improved to 45.1%, up 2.1 percentage points• Operational EBIT of CHF 7.4 million, up 36.5%
9 months results, affected by the prior economic crisis• Sales of CHF 127.1 million, down by 18.6%• Gross margin decreased to 43.6% from 44.8%• Operational EBIT of CHF 16.0 million from CHF 25.4 million

79 February 2010

2. Net Sales
Sales in CHF millions

Sales

9 months
growthGrowth
Q2 to Q3

Total Sales

127.1-19%

12%

Industrial

117.0

-19%

11%

Automotive

10.1

-19%

18%

In CHF millions

200

175

150

125

100

755025

2004/ 05

9 February 20102005/ 06

2006/ 07

2007/ 08

2008/ 09

YTD 2009/ 108

2. Zoom on the recession history
Op. EBIT in % of sales

In CHF millions

30%

70605020%
403010%20
1000%
Q1
2008/ 09

Q2
2008/ 09

Q3
2008/ 09

Q4Q1
2008/ 09 2009/ 10Orders received

Sales

Q2
2009/ 10Q3
2009/ 10
9Op. ROS

9 February 2010

2. Industrial Segment: Regional Markets
Sales growth rates

9 months

Q3 to Q2

Europe-25%

9%N. America

-24%

6%

Asia

-0%

18%

ROW

-36%

5%

Total

-19%

11%

ROW 2%

Asia 31%

N. America
12%Europe 55%
Strong recovery in Asia

Total sales CHF 117.0 million for YTD Q3 2009/10

China Q3 to Q2

7%

China 9 months22%109 February 2010

2. Industrial Segment: Business Development
Sales in CHF millions

Op. EBIT in % of sales

Markets and Applications
20025160

20120

1580

1040

50Industry: Over 15% growth in sales
since the last quarter, strong recoveryof solar and wind market
Traction: Sales growth of 1.5% since
the last quarter. This market has
suffered the least in the recession but isnow slowing down
Energy & Automation: decreased insales by 4% in the last quarter still froma small basis

02004/ 05

2005/ 06

2006/ 07

2007/08

2008/ 09

YTD
2009/ 10119 February 2010

2. Industrial Segment: Business Development• Integration of LEM Danfysik within LEM continues to make goodprogress• Starts of production for projects in the renewable energy market inScandinavia and Asia
• Further starts of production in Q4 2009/10 in Japan, Germany andNorth America for the renewable energy, air conditioning and drivesmarket• Renewable energy market is developing well with the new products
we have launched
129 February 2010

2. Automotive Segment: Regional Markets
Sales growthrates

Europe 9%

Asia 41%9 months

Q3 to Q2Europe30%

62%

N. America-20%44%Asia-23%-14%

Total

-19%

18%

Strong recovery in Europe and N. America
N. America
50%

Total sales CHF 10.1 million for YTD Q3 2009/10
139 February 2010

2. Automotive Segment: Business Development
Sales in CHF millions

Op. EBIT in % of sales

2525

20

20

15

15

1010

5

500
2004/05

2005/06

2006/ 07

2007/ 08

2008/ 09

YTD
2009/ 10-5-5-10-10-15-15

Market• Start of production for several newcustomers in USA, Japan and Europe• More new starts of production for
2010/11

Applications• Battery management• Motor Controls

Results

9 February 2010

• Op EBIT in Q3 near break even, driven
by volume and gross margin
improvement

142. Business Development Results for AutomotiveSegment
New Business> CHF 0.5 million

Application

China

BM, EV, HEVJapan

EV, HEVJapan

BMJapan

EPS

Korea

EV, HEVEurope

BMEurope

EV, HEVUSA

EV, HEV, BMSoP
2009/10

SoP
2010/11Q2

9started in Q2
9started in Q3

Q2
Q1

9started in Q3
9started in Q3
9started in Q3

Q1, Q2EV = electric vehicle, HEV = hybrid electric vehicle, BM = battery management, EPS = Electric Power Steering

159 February 2010

2. Business Development ChinaSales• Sales for 9 months at 12 months level of
2008/09• Market share now close to 50%
In CHF millions

Production• Opening of new 10’000 m2 facility

In CHF millions
602550
2040

1530

1020

51000
2004/ 05

2005/ 06

9 February 2010

2006/ 07

2007/ 08

2008/09

YTD
2009/ 10

2004/ 05

2005/ 06

2006/ 07

2007/ 08

2008/ 09

YTD
2009/ 1016

2. Gross Margin Development
In CHF millions

Gross Margin in % of sales
90%

9075%
7560%
60
45%
4530%30

 Gross Margin increased to45.1% in Q315%

150%0
2004/ 05

9 February 20102005/ 06

2006/ 07

2007/ 08

2008/ 09 YTD 2009/ 10

3. Financial Review

9 February 2010173. Income Statement
In CHF thousands

Sales

9 months 9 months
2009/10
2008/09
156’146

127’082

Change %Q2
2009/10Q3
2009/10

Change %-19%

43’17248’266

+12%

44.8%

43.6%

43.0%

45.1%

SG&A

(44’443)(39’454)(13’147)(14’375)

Operational EBIT*

25’44316’001

5’418

7’396

SOP costs

4’960(5’614)

(498)

(804)

EBIT

30’403

10’387

4’920

6’592

Financial expense(net)(1’322)(1’051)

(504)

(314)

Income taxes(7’520)(3’844)(1’559)(2’357)

Net profit

21’561

5’492

2’857

3’921

Gross margin %

-37%

-74%

+37%

+37%

* Before revaluation of provisions for the stock option plans
Share price development from CHF 149.90 to CHF 278.50 resulted in an additional provision of CHF 5.6 million

199 February 2010

3. Financial Expense
9 months
2008/09

9 months
2009/10Foreign exchange effect*(1’120)(817)

Other financial expense + income

(202)

(234)

Total(1’322)(1’051)

In CHF thousands

 Foreign exchange cost mainly driven by USD and CNY devaluation
 Other financial expense and income increase, because of the financing costof the LEM Danfysik acquisition* The foreign exchange effect is mainly due to currency volatility during the time between booking and settling a receivable/payable.
20
9 February 2010

3. Income Taxes
9 months
2008/09

In CHF thousands

EBT

9 months
2009/1029’081

Income taxes

9’336(7’520)

thereof current & deferred tax(3’844)(7’520)(2863)

0(981)

thereof withholding tax
Effective tax rate

25.9%

without withholding tax

41.2%

25.9%

30.7%

 Further increase of withholding tax provisions for dividend repatriation, linked topositive EBT development according to the policy implemented in September 2009
 Tax rate excluding withholding tax expected to be significantly decreased goingforward
9 February 2010

3. Net Profit (including provision on SOP)
9 months 2008/09
In CHF millions

Net profit in % of sales
+5.0

-1.3
-7.5

2525%

2020%

1515%

1010%

25.4
21.6

9 months 2009/10
-5.6
-1.1

16.0

-3.8
5.5

55%
Op. EBIT00%
2004/ 05 2005/06 2006/ 07 2007/08 2008/ 099 February 2010

YTD
2009/ 10

SOP costs

Financialexpense

Income taxes

Net profit

 Reversal of last year’s SOP impact
22

4. Outlook

9 February 2010

4. Market Factors and Strategy
The strategic drivers for our business have provenrobust during the recession:• Need for more energy and renewable energy• Need for reliable energy, more controls and standby
battery management• Need for better energy efficiencies, increasing
demand for more efficient motor controls• Need for more mobility, public transport andautomotive with a shift to energy friendly solutions

249 February 2010

4. Outlook• We will maintain our focus on cost control and operational priorities• We will continue our investments in the new businesses, including thefast integration of LEM Danfysik• Sales for the year at the high end of the Q2 outlook statement ofCHF 170 to 180 million• Operational EBIT of about CHF 25 million

25
9 February 2010

4. Financial Calendar and Contact Details
Financial calendar

9 February
3 June25 June2010
2010
2010

Q3 2009/10 results
Full year 2009/10 results
Ordinary Shareholders Meeting

For further information

Paul Van Iseghem
President & CEO
Tel: +41 22 706 1409
E-mail: pvi@lem.com

Julius Renk
CFO
Tel: +41 22 706 1250
E-mail: jrk@lem.com

26
9 February 2010