Slides
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Half Year Results 2025/26 1 April 2025 to 30 September 2025
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Opening Remarks Frank Rehfeld Business Performance Frank Rehfeld Financial Results Antoine Chulia Outlook & Mid-Term Ambitions Frank Rehfeld 2 Agenda 10.11.2025Half Year Results 2025/26
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LEM reported a 5.3% decline in sales to CHF 148.3 million (2024/25: CHF 156.5 million) due to currency headwinds; at constant exchange rates up 0.5%, with growth in Automation, Automotive and Track confirming the resilience of its diversified portfolio China confirmed stabilization trends with solid volume growth offset by high price pressure; LEM gained market share in Automation and Track and benefited from domestic EV market growth EMEA recorded slightly lower sales as weakness in Renewable Energy and EDHP weighed on performance; Americas with strong sales at constant exchange rates, supported by the tariff impact Driven by the Fit for Growth program, EBIT margin recovered to 7.7% in the first half, rising from 5.5% to 9.9% quarter-on-quarter despite lower sales from currency effects Free Cash Flow improved to CHF 5.6 million, up from CHF -11.6 million a year earlier, driven by tighter working capital management; Free Cash Flow before restructuring costs reached CHF 11.1 million. LEM expects no major change in business development and forecasts sales of CHF 265 to 290 million with a high single-digit EBIT margin for 2025/26, reflecting improved profitability Updated mid-term financial ambitions: Following a phase of market adjustment expected to last through FY2026/27, LEM targets sustainable average annual sales growth of 4 to 7% at constant exchange rates and a gradual improvement of the EBIT margin towards a 10 to 15% range Moderate performance with margin recovery over the half-year period 3 LEM with stable sales in the first half 2025/26 10.11.2025Half Year Results 2025/26
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Opening Remarks Frank Rehfeld Business Performance Frank Rehfeld Financial Results Antoine Chulia Outlook Frank Rehfeld 4 Agenda 10.11.2025Half Year Results 2025/26
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A leading company in electrical measurement 10.11.2025Half Year Results 2025/26 5 Renewable Energy Energy Distribution & High Precision Track Five Businesses AutomotiveAutomation HY 2025/26 Sales CHF m 43.7 40.6 20.3 19.0 24.6 Δ CHF -3.2% +2.0% -20.3% -19.7% +9.9% Δ constant exchange rates +2.8% +8.9% -15.1% -15.2% +14.9%
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HY 25/26 Q2 25/26 vs 24/25 vs 24/25 Automation 43.7 -3.2% +4.3% Automotive 40.6 +2.0% -4.8% Renewable Energy 20.3 -20.3% -17.0% Energy Distribution & High Precision 19.0 -19.7% -18.5% Track 24.6 +9.9% +9.1% TOTAL 148.3 -5.3%* -4.0% Sales CHF m Growth Automation recovered as inventories normalized and Automotive grew in China and Europe on strong EV and battery management demand Renewable Energy and Energy Distribution & High Precision remained weak, with lower solar and EV charging investments partly offset by growth in data center power supply Track business performed well across all regions Sales distribution by business 10.11.2025Half Year Results 2025/26 6 *+0.5% at constant exchange rates 29% 27% 14% 13% 17%
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HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 Sales 43.7 45.2 22.5 21.6 Drives, robots, tooling machines, elevators, and HVAC 10.11.2025Half Year Results 2025/26 7 Automation The market recovered as customer inventories normalized, driven by mid-power applications such as power measurement and data center cooling, while low-power drives remained weak High-voltage applications in China performed well, with Chinese suppliers expanding into Europe and increasing price pressure 0 20 40 60 80 100 120 140 21/22 22/23 23/24 24/25 25/26 FY sales HY sales CHF m
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HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 Sales 40.6 39.8 19.0 19.9 Battery (EV & CE), motor control, and onboard charging 10.11.2025Half Year Results 2025/26 8 Automotive Automotive performance significantly varied by region China and Europe grew on strong EV and battery management demand, supported by LEM’s strong local positioning and cost discipline In the Rest of Asia and Americas, weak demand persisted, but price pressure was mitigated by a shift toward higher-value battery management products, where LEM leads technologically and is expanding capacity 0 20 40 60 80 100 120 21/22 22/23 23/24 24/25 25/26 FY sales HY sales CHF m
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HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 Sales 20.3 25.5 9.4 11.4 Solar and wind 10.11.2025Half Year Results 2025/26 9 Renewable energy Market in China declined after the cancellation of solar feed-in tariffs in June 2025, slowing new project investments In Europe, demand remained weak as domestic solar systems are mostly sourced from China, while large commercial projects performed better In the Rest of Asia, growth was supported by government spending in Japan, an upturn in India, and stable wind energy demand 0 10 20 30 40 50 60 70 21/22 22/23 23/24 24/25 25/26 FY sales HY sales CHF m
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HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 Sales 19.0 23.7 9.3 11.5 Charging stations, smart grid, energy storage, and high precision 10.11.2025Half Year Results 2025/26 10 Energy distribution and high precision DC meter business remained challenging in Europe and the US as low EV sales and rising competition led to postponed investments Market in China stayed relatively stable High-precision segment weakened due to lower demand in automotive battery testing Business with uninterruptible power supply for data centers grew across all regions, supported by a dedicated US initiative 0 10 20 30 40 50 60 70 21/22 22/23 23/24 24/25 25/26 FY sales HY sales CHF m
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HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 Sales 24.6 22.4 12.3 11.2 Trains, metro, and trackside 10.11.2025Half Year Results 2025/26 11 Track Track business performed well across all regions with strong sales growth Solid demand for converters in locomotive and subway projects ensured good capacity utilization Retrofit business for energy meters enabled growth above the overall market 0 10 20 30 40 50 60 21/22 22/23 23/24 24/25 25/26 FY sales HY sales CHF m
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HY 25/26 Q2 25/26 vs 24/25 vs 24/25 China 55.1 -8.5% -8.6% Rest of Asia 25.4 +0.4% +12.5% EMEA 49.7 -6.8% -11.5% Americas 18.0 +1.9% +11.6% TOTAL 148.3 -5.3%* -4.0% Growth Sales CHF m Business in China remained stable at constant exchange rates, with volume growth offset by price pressure and market share gains in Automation, Automotive and Track Slight growth in the Rest of Asia was driven by India’s Track business Sales in EMEA were slightly lower as weakness in Renewable Energy and EDHP was partly offset by stronger Automation, Automotive and Track Strong sales in the Americas at constant exchange rates were supported by the tariffs and solid performance in most businesses. Close cooperation with distributors led to market share gains The Malaysia production site is well received by global customers and supports growth Sales distribution by region 10.11.2025Half Year Results 2025/26 12 *+0.5% at constant exchange rates 37% 17% 34% 12%
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Opening Remarks Frank Rehfeld Business Performance Frank Rehfeld Financial Results Antoine Chulia Outlook & Mid-Term Ambitions Frank Rehfeld 10.11.2025Half Year Results 2025/26 13 Agenda
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Sales declined by 5.3%. At constant exchange rates, there was a slight growth of 0.5%, supported mainly by Automotive and Track businesses. Gross margin hit from price/mix pressures, on path to recovery in Q2 Large reduction in operational expenditures vs prior year thanks to Fit for Growth actions EBIT margin at 7.7%, affected by margin compression in Q1, but recovery above 10% before restructuring costs in Q2 thanks to margin improvements and reductions in Opex from Fit 4 Growth. 10.11.2025Half Year Results 2025/26 14 Performance at a glance *+0.5% at constant exchange rates
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HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 Gross profit 58.8 69.0 29.8 33.0 In % of sales 39.6% 44.1% 41.1% 43.7% Gross margin Gross margin decreased by 450 basis pts in HY, with solid sequential recovery in Q2 from Q1: price / mix drag from pressures driven by China market favorable contribution from supply productivity gains accelerating in Q2, despite under absorption of available capacity 10.11.2025Half Year Results 2025/26 15 0% 10% 20% 30% 40% 50% 60% 70% 0 50 100 150 200 250 21/22 22/23 23/24 24/25 25/26 Full year GM in % of sales Half year GM in % of sales CHF mCHF m
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HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 SG&A 31.5 36.4 15.3 17.8 In % of sales 21.3% 23.2% 21.1% 23.6% SG&A SG&A decreased by 13% YoY: Fit for Growth program execution on track with plans Positive impacts steadily materializing in Q2 10.11.2025Half Year Results 2025/26 16 0% 10% 20% 30% 0 10 20 30 40 50 60 70 80 21/22 22/23 23/24 24/25 25/26 Full year SG&A in % of sales Half year GM in % of sales CHF mCHF mCHF m
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HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 R&D 14.6 18.5 6.3 8.6 In % of sales 9.9% 11.8% 8.7% 11.3% R&D R&D expenses decreased by 21.1% Reduction driven by Fit for Growth initiative Overall personnel reduction and footprint alignment towards Asia Improved R&D efficiency to support ambitious product roadmap 10.11.2025Half Year Results 2025/26 17 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 0 5 10 15 20 25 30 35 40 21/22 22/23 23/24 24/25 25/26 Full year R&D in % of sales Half year GM in % of sales CHF mCHF m
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HY HY Q2 Q2 CHF m 2025/26 2024/25 2025/26 2024/25 Exchange effect (0.7) (2.3) (0.1) (1.0) Other financial expense & income (2.4) (1.8) (1.1) (1.3) Total (3.1) (4.1) (1.3) (2.3) Negative foreign currency effects due to the appreciation of the CHF against major currencies Higher average debt in HY 2025/26 led to an increase of interest expenses by CHF 0.5 million 10.11.2025Half Year Results 2025/26 18 Financial expense
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Current results are in line with previous year ending results, with an effective tax rate amounting to 18.2%. 10.11.2025Half Year Results 2025/26 19 Income taxes % HY 2025/26 FY 2024/25 HY 2024/25 Expected income tax rate 20.0 22.5 11.9 Expected withholding tax rate (1.5) 4.6 2.0 Expected tax rate 18.5 27.1 13.9 Effect of changes in tax rate on deferred tax 1.6 0.8 0.3 Permanent difference (2.2) (3.6) (1.9) Other differences 0.3 (4.4) 2.2 Effective tax rate 18.2 19.9 14.5
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HY HY Q2 Q2 CHF m 2025/26 2024/25 Change 2025/26 2024/25 Sales 148.3 156.5 -5.3% 72.5 75.6 Gross margin % 39.6% 44.1% -4.5%pt 41.1% 43.7% Operating expense (47.4) (54.9) -13.6% (22.6) (26.4) EBIT 11.4 14.2 -19.8% 7.2 6.7 EBIT margin % 7.7% 9.1% -1.4%pt 9.9% 8.9% Net financial expenses (3.1) (4.1) -25.8% (1.3) (2.3) Income tax (1.5) (1.5) +2.8% (1.1) (0.6) Net profit 6.8 8.6 -20.8% 4.8 3.8 Net profit margin % 4.6% 5.5% -0.9%pt 6.6% 5.0% Income statement 10.11.2025Half Year Results 2025/26 20
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Balance sheet 10.11.2025Half Year Results 2025/26 21 • Net working capital increase by CHF 4.6 million driven by large severance and catch-up vendor payments • Reduction in non-current liabilities driven by long term debt movements and amortization CHF m 30.9.2025 31.3.2025 Net working capital 73.1 68.5 Non-current assets 172.2 181.8 Non-current liabilities (92.3) (102.1) Net operating assets 153.0 148.2 Net cash/(debt) (81.8) (90.1) Equity 131.0 125.8 Equity ratio 40.2% 36.4% Days of sales outstanding 84 81 Days of inventory outstanding 130 137 Days of payables outstanding 35 60
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Cash flow 10.11.2025Half Year Results 2025/26 22 CHF m HY 2025/26 HY 2024/25 Profit before tax 8.3 10.0 Adjustment for non-cash items and taxes paid 15.0 5.3 Cash flow from changes in net working capital (13.6) (18.0) Cash flow from operating activities 9.7 (2.7) Cash flow from investing activities (4.1) (8.9) Free cash flow 5.6 (11.6) Cash flow from financing activities (2.7) 7.0 Change in cash and cash equivalents 2.9 (4.6) Cash and cash equivalents at the end of the period 20.4 18.6 • Strong improvement of operating cash flow from solid EBITDA and tax refunds, despite large one-time payments (incl. restructuring costs) • Investments decreased by CHF 4.8 million due to strict project scrutiny and prioritization • Free Cash Flow improved to CHF 5.6 million due to better working capital management; Free Cash Flow before restructuring costs reached CHF 11.1 million
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Opening Remarks Frank Rehfeld Business Performance Frank Rehfeld Financial Results Antoine Chulia Outlook & Mid-Term Ambitions Frank Rehfeld 10.11.2025Half Year Results 2025/26 23 Agenda
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LEM does not expect a general change in business development until the end of the financial year For FY 2025/26, we expect Sales in the range of CHF 265 to 290 million and a high single-digit EBIT margin Considering the outlook, uncertainties remain regarding the global impact of US tariff policy, significant currency fluctuations, and continued geopolitical movements in the semiconductor ecosystem 10.11.2025Half Year Results 2025/26 24 Outlook – Financial Year 2025/26
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Recalibration to enhance flexibility and reflect current industry dynamics 25 Updated Mid-Term Financial Ambitions 10.11.2025Half Year Results 2025/26 0 50 100 150 200 250 300 350 400 450 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net Sales LEM HOLDING SA Niche Sustainability Push & Covid Affordable Sustainability in CHF A fundamentally changing environment and the continued appreciation of the Swiss franc prompted an update of LEM’s mid- term ambitions. LEM expects market adjustment and stabilization to continue through FY 2026/27; from FY 2027/28 it targets 4 to 7% average annual sales growth at constant exchange rates and a 10 to 15% EBIT margin, depending on currency and market developments. The company is adapting to structural changes as part of the “Fit for Growth” program launched in November 2024. LEM’s mid-term ambitions position the company to capture growth opportunities while maintaining strict cost discipline and financial resilience.
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The LEM business model is well positioned to capture growth from global megatrends in electrification, energy transition and e-mobility With our high investments in R&D, LEM continues to drive innovation to strengthen and expand its technological leadership New and expanded R&D centers in Munich, Germany, and Shanghai, China, delivered initial successes, with further progress to follow The Malaysia production site enables the extension and flexibilization of our production footprint and is well received by global customers LEM continues to drive innovation 26 Sustainability trends to continue 10.11.2025Half Year Results 2025/26
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Q&A 10.11.2025Half Year Results 2025/26 27
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The financial year runs from 1 April to 31 March 6 February 2026 9 months results 2025/26 26 May 2026 Full year results 2025/26 25 June 2026 Annual General Meeting FY 2025/26 29 Junе 2026 Dividend ex-date 1 July 2026 Dividend payment date Financial calendar and contact details 10.11.2025Half Year Results 2025/26 28 For further information Antoine Chulia, CFO Phone: +41 22 706 12 50 E-mail: investor@lem.com
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