Press release

LEM announces results for 9 months 2020/21:
performance continues to improve
Geneva, Switzerland, 04 February 2021 – LEM (SIX: LEHN), a leading global company in electricalmeasurement for industry and automotive applications, announces 9 months results for 2020/21 (AprilDecember) compared to 2019/20:•

Sales decreased by 7.5% to CHF 218.2 million (CHF 235.8 million); at constant exchange rates,
sales decreased by 2.9%

•The company benefits from a diverse global distribution of sales, with China further increasing its
share:– China CHF 84.8m (38.9% of total)– Europe CHF 63.0m (28.9% of total)– North America CHF 21.3m (9.7% of total)– Rest of World CHF 49.1m (22.5% of total)•

Bookings continued to recover during the third quarter from the significant decline during the earlyphase of the Covid-19 pandemic, and for 9 months are down 8.0% at CHF 222.3 million (CHF 241.6million)•

R&D investments of CHF 19.8 million (CHF 21.9 million) were maintained at 9.1% of sales•

EBIT was CHF 43.6 million, decreasing by 6.0% (CHF 46.4 million); however, the EBIT margin
improved slightly to 20.0% (19.7%)•Net profit for the period was down by 30.7% at CHF 36.0 million (CHF 52.0 million); although thecomparative period last year was boosted by a one-off positive tax impact of CHF 14.0 million

Frank Rehfeld, Chief Executive Officer, said: “Our business continues to recover from the initial
impacts of the Covid-19 pandemic. Sales, orders and profitability all improved in Q3 compared to Q2.
The top-line performance was mainly driven by China, renewable energy and the acceleration indemand for electric vehicles, with underlying revenues down only 2.9% in constant currencies for 9months. We are confident that our teams will continue to lead LEM successfully through thischallenging period. The fundamental drivers for our business have become even more pronounced bychanges in international economic and social policies. Although there have been some improvements
in our order book, our outlook for the full year remains prudent.”
Andrea Borla, Chief Financial Officer, remarked: “We were pleased to continue improving ourorganisational efficiency, while maintaining R&D investments at 9.1% of sales. The EBIT margin
remains solid at 20.0%. We are slightly increasing our full year sales outlook to around CHF 290million.”

LEM Holding SA

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Industry segment: continued recovery in China and Renewables
9 months sales in the Industry segment totalled CHF 165.4 million, down 9.2%. At constant exchange
rates, sales decreased by just 4.9%, with a strong FX effect on reported sales from China and North
America. Covid-19 continues to impact sales, orders and customer confidence, but Q3 sales stabilised.
The mid and long-term drivers for Renewables are growing stronger thanks to major policy andtechnology shifts. Sales increased by 6.4% in China, our largest market, due mainly to Renewable
Energy, and this is particularly encouraging in such a tough competitive market. However, there weresignificant declines in Europe (-15.3%), North America (-20.0%) and Rest of World (-16.9%). Orders
improved again in Q3 and are back to levels seen last financial year, with some encouraging signs inthe Drives business.
2020/212019/20

69.7

73.6

Renewable
Energy61.4

60.7

Traction

28.8

39.5

High precision

5.5

8.4

Total Industry

165.4

182.1

in CHF millions

Businesses
DrivesChange Comments-5.2% • Longer-term investment cycles• Asia and USA recovering+1.1% • China solar demand ahead of
Spring season peak
• Europe improved orders-27.1% • Longer-term investment cycles• India and China delays in majororders-34.9% • Budgets switched to Covid needs• Lack of investment confidence fortest benches & medical equipment-9.2%

Automotive segment: strong recovery driven by EV demand
9 months sales in the Automotive segment totalled CHF 52.8 million, a decrease of 1.5%. At constantexchange rates, sales improved by 4.1%, which is encouraging given the shutdowns during the firstphase of the Covid-19 pandemic. The Q3 sales of CHF 21.3 million (+15.2%) are the highest quarterly
sales yet achieved by the business.
China performed very well in Q3, with 9 months sales now up +4.1%, driven by consumer appetite for
EVs and the launch of several new vehicles. Europe continued its strong growth (+44.9%), as
manufacturers (OEMs) ramped-up their production operations. North America (-31.8%) is impacted by
reduced sales of 12V products, which are sold on non-EV cars, while the transition to green cars isprogressing at a slower pace than other regions. Rest of World declined slightly by 5.4%, with strong
sales in Korea offset by Japan. The order book continued to fill up during Q3, and year to date is up+6.7% as the EV share of the total market continues to accelerate.
in CHF millions

2020/212019/20

Businesses
Battery Management

31.534.9Motor Control

18.8

16.6

Charging Systems

2.52.2

Total Automotive

52.8

53.6

LEM Holding SA

Change Comments-9.6% • US reduction in 12V demand• Demand for High Voltage products
increasing+13.3% • Strong demand spurred by EV
cars+13.8% • Continued momentum for battery
electric and hybrid vehicles-1.5%

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Profitability improves after first impacts of Covid-19
Gross profit for the 9 months fell by 9.3% to CHF 100.6 million. The gross margin declined by 90 basis
points to 46.1% principally due to the impact of Covid-19 on higher air freight costs for delivering
products to customers. We continue to execute various efficiency programs.
We remain vigilant with overheads, reducing SG&A costs to 17.6% of sales (18.1%), a decline inabsolute terms of 10.2% to CHF 38.3 million (CHF 42.7 million).
We continue with our long-term investment in future applications with R&D at 9.1% of sales (9.3%),
although this decreased in absolute terms by 9.6% to CHF 19.8 million (CHF 21.9 million) without
impacting our strategic investments.
EBIT was down by 6.0% to CHF 43.6 million (CHF 46.4 million), due to the decline in revenues andgross margin, while our EBIT margin improved slightly to 20.0% (19.7%). This is the third consecutive
quarter in which EBIT has improved since the first impact of Covid-19 in January-March 2020.
We posted a net profit for the nine months of CHF 36.0 million, down 30.7% from CHF 52.0 million.
However, the same period last year was boosted by a non-recurring positive tax impact of CHF 14.0million from the sale of technical IP. On a like-for-like basis, this period’s net profit of CHF 36.0 million
is down 5.2% from CHF 38.0 million, while the net profit margin has improved to 16.5% from 16.1%.
Cautious outlook
Our business has proven agile and resilient in face of the initial impacts of Covid-19, delivering
improved performance in Q3. However, there is little visibility on how the pandemic may play out if forexample China or other major markets go into further lockdowns, despite the roll-out of vaccination
programs. For the full financial year 2020/21, the company remains cautious and now expects sales
to decline by about 6% in reported Swiss Francs to around CHF 290 million (CHF 307.9 million for
2019/20). LEM anticipates an EBIT margin close to 20%.
WebcastFrank Rehfeld, CEO, and Andrea Borla, CFO, will provide a detailed presentation of the 9 months
2020/21 results today at 10:00 CET at a media and investor community webcast.
Listen to live webcast
LEM Holding SA (choruscall.com)
The webcast slides are available in the Investor Relations section of the LEM website(www.lem.com/en/investors), where the webcast will later also be archived.
Dial-In Numbers
Switzerland & Europe:
UK:
USA:
Other countries:+41 (0)58 310 50 00+44 (0) 207 107 06 13+1 (1) 631 570 56 13
https://media.choruscall.ch/documents/Attended_DI_numbers.pdf

Financial calendar
The financial year runs from 1 April to 31 March
19 May 2021
Year-end results 2020/21
24 June 2021
Annual General Meeting of Shareholders for the financial year 2020/21
1 July 2021
Dividend ex-date
6 July 2021
Dividend payment date

LEM Holding SAPage 3/6

LEM – Life Energy Motion
A leading company in electrical measurement, LEM engineers the best solutions for energy andmobility, ensuring that our customers’ systems are optimized, reliable and safe.
Our 1,500 people in over 15 countries transform technology potential into powerful answers. We
develop and recruit the best global talent, working at the forefront of mega trends such as renewableenergy, mobility, automation and digitization.
With innovative electrical solutions, we are helping our customers and society accelerate the transition
to a sustainable future.
Listed on the SIX Swiss Exchange since 1986, the company’s ticker symbol is LEHN.
www.lem.com
Contact: Investment community
Andrea Borla, Chief Financial Officer
Phone: +41 22 706 1250
Email: investor@lem.com
Contact: MediaCabinet Privé de Conseils s.a. (CPC)
Nick Miles, miles@cpc-pr.com, mobile +41 79 678 76 26
Michael Füglister, fuglister@cpc-pr.com, mobile +41 78 839 07 62

LEM Holding SA

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Appendix

LEM Holding SA

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Key Figures
2020/21

In CHF millions

Q4

ChangeOrders received

Q1

Q2

Q3

Q1

Q2

Q3

Q4

FY

Q3 - Q3

9M - 9M

Industry

47,555,763,971,354,863,864,5254,3+0,2%-12,0%

Automotive

12,0

20,223,1

17,2

17,2

17,5

16,468,2+32,2%+6,7%

Total LEM

59,575,987,088,472,0

81,280,8

322,4+7,1%-8,0%
9M - 9M

Q4FY

2019/20

Book-to-bill ratio

Q1Q2

Q3

Q1

Q2

Q3

Q4

FY

Q3 - Q3

Industry

0,79

1,06

1,21

1,100,92

1,10

1,11

1,06

+10,5%-3,1%

Automotive

0,83

1,19

1,08

0,95

1,00

0,94

1,18

1,01+14,8%+8,4%

Total LEM

0,80

1,09

1,17

1,070,941,06

1,121,05+10,9%-0,6%

Q4FYSales

Q1Q2Q3Q1Q2Q3Q4FY

Q3 - Q3

9M - 9M

Industry

59,852,852,864,659,358,258,2240,4-9,3%-9,2%

Automotive

14,517,021,318,017,118,513,967,6+15,2%-1,5%

Total LEM

74,369,874,182,676,476,772,2307,9-3,4%-7,5%
9M - 9M

EBIT

Q1Q2Q3Q1

Q2Q3Q4FY

Q3 - Q3

Industry

12,312,111,414,313,211,511,450,4-1,2%-8,4%

Automotive

1,02,93,92,4

1,93,2

0,57,9+24,5%+6,7%

Total LEM

13,315,015,316,715,114,611,958,3+4,3%-6,0%

Net profit of the period

Q1Q2Q3Total LEM

11,112,312,6

LEM Holding SA

Q4

FY

Q4

FYFY

Q1

Q2

Q3

Q4

FY

Q3 - Q3

9M - 9M

13,911,226,98,760,7-53,0%-30,7%

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