9 Months Results 2021/22
1 April 2021 to 31 December 2021

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea BorlaOutlook

Frank Rehfeld

9 Months Results 2021/2204.02.20222

lifeenergy
motionMomentum continues despite supply chainchallenges
Continued strong momentum from the first half of the year
We could have sold even more and were disappointed not to be able to satisfy customer demand, despite ourbest efforts to overcome the ongoing supply chain challenges
Our global bookings remain at record levels, with customers firmly committing to orders over longer time horizons

China, Europe and Asia continue to lead our growth

Industry segment is benefitting from acceleration of decarbonization across the world
Investment confidence remains solid in all our businesses, helped by government policies and infrastructuredevelopment

Automotive segment particularly hampered by shortages of semiconductors and other components
We remain encouraged by the fundamental transition towards Electric Vehicles

9 Months Results 2021/22

04.02.2022

4

World Bank global economy outlook 2022/2023
Growth to slow through 2023
Growth to decelerate to 4.1 percent in2022, reflecting continued COVID-19
flare-ups, diminished fiscal support, andlingering supply bottlenecks

Real GDP % change from previous year

GDP change in % by country
1086420-2

2019

2020

2021e

2022f

-4-6-8

Years
World

Source: World Bank, January 2022

China

Euro Area

United States

2023f

Global growth is projected to soften
further to 3.2 percent in 2023, as pent-up
demand wanes and supportive
macroeconomic policies continue to be
unwoundGrowth in China is set to ease to 5.1%
this year, partly due to the lingeringeffects of the pandemic as well as
additional regulatory tightening fromBeijing
9 Months Results 2021/22

04.02.2022

5

Supply chain prognosis
LEM reliability and agility to find solutions
Continue to trouble-shoot and find alternatives

Continue to collaborate with customers and suppliers for long-term solutions

Further develop semiconductor capabilities over the coming 3 years
Design, Packaging, Testing

Ultimate bottleneck for all players is wafer manufacturing capacity

Demand is strong across all our businesses
We invest into further production capacity

Sales growth hampered throughout 2022

9 Months Results 2021/2204.02.2022

6

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

9 Months Results 2021/2204.02.2022

7

A leading company in electrical measurement
Core applications

Motor
DrivesSegments

Automotive
Motor control

9M 2021/22 Sales
CHF mPower Storage, Generation,Conversion

Batterymanagement

EnergyMeasurement

Industry
Charging
systems

Drives & Welding

Renewable energies

Traction

High-Precision

9 Months Results 2021/22

04.02.2022

62.5

212.9

Δ CHF

+18.4%+28.8%Δ constant currency+15.9%+27.0%8Global sales spread

GrowthChina and Europe lead
growth22%

Balanced exposure
Close to customers on
the ground in all key
markets

38%

9%

31%

Sales

9M 21/22

Q3 21/22

CHF m

vs 20/21

vs 20/21

China

106.5

+25.6%+19.5%

Europe84.8+34.7%+36.5%

North America

24.3+14.4%

+5.4%

RoW

59.7

+21.6%+24.4%

Total

275.5

+26.2%*+23.9%* +24.3% at constant currency rates

9 Months Results 2021/22

04.02.2022

9Industrysegment

Industry segment
Sales performance
CHF mBusinesses

2021/222020/21

ChangeComments

Drives

96.569.7+38.4%••

Small & medium power applications
Manufacturing capacity investment in semiconductors

Renewable Energy

77.6

61.4+26.5%••

China solar driven by infrastructure
Europe boosted by DC meter

Traction

31.6

28.8+9.7%•Europe and India driving demandHigh precision

7.2

5.5+31.8%••

Demand for test and measurement products picking up
Medical recovered to pre-pandemic level

Total Industry

212.9

165.4

+28.8%All businesses continue to benefit from the return of investment confidence and customer demand, although oursales were held back by capacity constraints
The fundamentals remain strong, as decarbonization and electrification accelerates across the world

9 Months Results 2021/22

04.02.2022

11Industry segment
Regional markets

Europe, China andRoW benefited fromdemand across Drives,Renewables, and High
Precision
Europe continues to belargest market
North America benefited
from the demand forDrives, but less so for
Renewables

Growth19%
35%
9%

37%

Sales

9M 21/22

Q3 21/22

CHF mvs 20/21

vs 20/21

China

74.4

+20.2%+20.0%

Europe77.9+37.3%+43.8%

North America

19.0+21.7%+23.4%RoW41.6+33.8%+36.2%

Total

212.9+28.8%*+31.4%* +27.0% at constant currency rates

9 Months Results 2021/22

04.02.2022

12

Industry next generation products
DrivesIN-200Traction

Renewables

HOB

LWSR

CDSR

Smart Grid

HTRS

ARH

9 Months Results 2021/22

04.02.2022

13

Automotive segment
Sales performance
CHF mBusinesses

2021/222020/21

ChangeComments

Battery Management

34.5

31.5+9.5%•Significant drop in US 12V demand

Motor Control

25.5

18.8

+35.8%•Strong demand spurred by EV cars

Charging Systems

2.5

2.5-1.5%•Product allocation impacted by semiconductor shortages

Total Automotive

62.5

52.8

+18.4%

Output constrained by continued supply chain issues for semiconductors and othercomponents
Q3 bookings back to more realistic levels, although for the full 9 months bookings morethan doubled compared with 9 months 2020/21
Bookings reflect strong fundamental demand for EV solutions and customers’commitments to orders over longer time horizons
9 Months Results 2021/22

04.02.2022

15

Automotive segment
Regional markets

China grew due to consumer
appetite for EVs and the launchof several new vehiclesElectrification grows in Europe,
although Q3 sales suffered due
to component shortages
North America transition to EVs
not quick enough tocompensate for decline incombustion engine battery
sensors

GrowthSales

9M 21/22

Q3 21/22

CHF mvs 20/21

vs 20/21

29%

51%
9%

11%

China

32.1

+40.3%+18.6%

Europe7.0+11.3%-12.7%

North America

5.3

-5.5%

-30.9%

RoW

18.1

+0.5%

+3.5%

Total

62.5

+18.4%*+5.1%* +15.9% at constant currency rates

Rest of World increasedslightly, as it had been less
impacted by the pandemic

9 Months Results 2021/2204.02.2022

16

Automotive next generation products
Battery management

HSBBV

Motor control

HST

Charging systems

CDT Series

9 Months Results 2021/2204.02.2022

17

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea BorlaOutlook

Frank Rehfeld

9 Months Results 2021/22

04.02.2022

18

Performance at a glance

CHF m

9M 2021/22

9M 21/22

Q3 21/22

vs 20/21

vs 20/21

Orders received

436.9+96.5%+57.1%

Sales

275.5+26.2%*+23.9%

EBIT

64.2+47.1%+44.3%Net profit

53.7+49.1%+46.7%* +24.3% at constant currency rates

Global bookings remain at record levels

Sales at constant exchange rates improved by 24.3%
EBIT and net profit improved mainly due to the increase in revenue

9 Months Results 2021/22

04.02.2022

19Gross margin
CHF m

160

9M

50%

Q3

Q3

2021/22 2020/21 2021/22 2020/21

140
48%
120

9M

In CHF m

130.1

100.6

44.5

35.1

In % of sales

47.2%

46.1%

48.5%

47.3%

46%
10080

44%

60
42%

Gross margin increased by 110 basis pts:

Higher sales volumes

4040%
20

038%
17/18

18/1919/20

Full year GM in % of sales

20/21

Improved economies of scale
80% of sales produced in China and Bulgaria

21/22

9M GM in % of sales

9 Months Results 2021/22

04.02.2022

20SG&A
CHF m

60

9M30%

9M

Q3

Q3

2021/22 2020/21 2021/22 2020/21

50

40

In CHF m

43.6

38.3

15.2

13.0

In % of sales

15.8%

17.6%

16.6%

17.6%

20%

30

20

10%

Costs increased in absolute terms to support
extra demand… but in relative terms fell to 15.8% of sales

1000%
17/18

18/19

19/20

Full year SG&A in % of sales

20/21

21/22

9M SG&A in % of sales

9 Months Results 2021/22

04.02.2022

21R&DCHF m

30

9M10%

9MQ3

Q3

2021/22 2020/21 2021/22 2020/21

258%

In CHF m

22.5

19.8

7.3

6.8

In % of sales

8.2%

9.1%

7.9%

9.2%

206%
154%
102%

500%

17/18

18/19

19/20

Full year R&D in % of sales

20/21

21/22

R&D increased in absolute terms by 13.6%

Investment continues to bear fruit withadditional new products launched successfullyLong-term strategy ensures targeted newtechnologies and applications for customers

9M R&D in % of sales

9 Months Results 2021/22

04.02.2022

22Financial expense
9M

9M

Q3

Q3

2021/222020/212021/222020/21

Exchange effect

(2.1)

0.1

(1.8)

0.0

Other financial expense & income

(0.1)

(0.3)

(0.1)

(0.2)

Total

(2.2)

(0.2)

(1.9)

(0.2)

CHF m

Negative foreign currency effect mainly on EUR accounts receivables following
recent EUR depreciation
Marginally compensated by EUR hedges
Low financial expenses due to low interest rates

9 Months Results 2021/2204.02.2022

23

Income taxes
9M2021/22

9M
2020/21

Expected income tax rate

14.3

15.3

Expected withholding tax rate

1.2

1.7

Expected tax rate

15.4

16.9

Other differences

(2.2)

0.2

Effective tax rate

13.2

17.1

%

Effective tax rate lower due to favorable geographic profit mix and tax credits
from R&D center in France
LEM China benefits from the HNTE (High & New-Technology Enterprise) reduced
tax rate of 15%
Withholding taxes mainly on dividends paid from China to Switzerland
9 Months Results 2021/22

04.02.2022

24

Income statement9M

9M

CHF m

2021/222020/21

Sales

275.5

Gross margin %Q3

Q3

Change2021/222020/21218.2+26.2%

91.8

74.1

47.2%

46.1%

+1.1%pt

48.5%

47.3%

Operating expenses(65.9)(57.0)+15.8%(22.5)(19.8)

EBIT

64.2

43.6

+47.1%

22.0

15.3

EBIT margin %

23.3%

20.0%

+3.3%pt

24.0%

20.6%

Net financial expenses

(2.2)

(0.2)

n/a

(1.9)

(0.2)

Income tax

(8.2)

(7.4)

+10.1%

(1.6)

(2.5)

Net profit

53.7

36.0

+49.1%

18.5

12.6

19.5%

16.5%

+3.0%pt

20.2%

17.1%

Net profit margin %9 Months Results 2021/22

04.02.2022

25

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

9 Months Results 2021/22

04.02.2022

26

Outlook – Financial Year 2021/22

We continue to benefit from the fundamental drivers ofelectrification, renewable energy and mobility

We still face headwinds from the impact of the pandemic
on different markets, including shortages for components
such as semiconductors

For the full financial year 2021/22, the company isslightly increasing its sales outlook to around CHF 360
million (CHF 301.0 million for 2020/21)
raising its forecast EBIT margin to around 22% (20.2% for2020/21)

9 Months Results 2021/22

04.02.2022

27

Q&A

9 Months Results 2021/22

04.02.2022

28

Financial calendar and contact details
The financial year runs from 1 April to 31 March

For further information

24 May 2022

Year-end results 2021/22

Andrea Borla, CFO

30 June 2022

Annual General Meeting FY 2021/22

Phone: +41 22 706 12 50

5 July 2022

Dividend ex-dateE-mail: investor@lem.com

7 July 2022

Dividend payment date

9 Months Results 2021/22

04.02.2022

29