Slides
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Full Year Results 2024/25 1 April 2024 to 31 March 2025
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Welcome Andreas Hürlimann Highlights Frank Rehfeld Business Performance Frank Rehfeld Financial Results Thomas Mellano Outlook Frank Rehfeld Sustainability Frank Rehfeld Board Changes and Dividend Proposal Andreas Hürlimann 2 Agenda 27.05.2025Full Year Results 2024/25
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Sales declined 24.4% in CHF, at constant exchange rates, the decrease was 23.5%; in sequential terms, Q4 2024/25 sales were up 2.3% compared to Q3 2024/25 Financial year was shaped by persistent market headwinds; while the first half was under pressure, we saw encouraging signs of recovery in the second half Automotive in China grew 14.8%, indicating that LEM is strengthening its position in this growing market EMEA saw significant declines, only Automotive showed a certain resilience; Americas remained weak, however, in Automotive LEM recorded a sequential improvement; Rest of Asia was characterized by a broad downturn Gross margin decreased only slightly, despite the under-absorption of production fixed costs thanks to continuous efforts in optimizing production costs and procurement activities Bookings were 7.8% above the previous year's level. The China region recorded a strong increase of 81.5%, while the Automotive business received 57.4% more bookings. The Book-to-bill ratio rose to 0.97 in Q4, compared to 0.82 in Q3 2024/25 Strong rebounds in China and Automotive bookings 3 FY 2024/25 in line with guidance; signs of recovery in H2 Full Year Results 2024/25 27.05.2025
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Company-wide initiative to improve competitiveness, agility, and customer proximity Supports the increasing business focus on Asia, driven by trends in e-mobility and renewables Organizational realignment to further improve empowerment and accelerate decision-making Geneva HQ to focus on Strategy and Innovation R&D capabilities being moved closer to Asian markets; expansion of R&D hub in Shanghai; Penang site now operating as a global dual-sourcing hub Shared Service Center in Bulgaria to absorb more transactional activities and be further expanded LEM enhances alignment between R&D and customer needs, strengthens supply chain resilience, and supports the path to mid-term EBIT targets and long-term sustainability Strategic Rationale & Objectives 4 Transformation program “Fit for Growth” Full Year Results 2024/25 27.05.2025
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LEM is reducing approx. 150 positions, primarily in Europe, with a social support plan in place for those employees affected Executive Committee streamlined from 7 to 5 members (effective 1 April 2025) with EMEA and Americas to report directly to CEO New Executive Committee composition: Frank Rehfeld (CEO), Antoine Chulia (CFO), Verena Vescoli (CTO), Uwe Gerber (SVP Operations), John McLuskie (SVP Asia) EBIT improvement of CHF 18–22 million expected in FY 2025/26, with full annual savings of ~CHF 35 million from FY 2026/27, split equally between personnel cost reductions and other OPEX savings; runs within the planned timing One-off program costs of ~CHF 10 million, with CHF 7.9 million booked in FY 2024/25 Global R&D network expanded to meet regional customer and application needs Development of next-gen sensor technologies, AI-enhanced and wireless energy-harvesting solutions, in close collaboration with research and technology partners Execution Plan, Organizational Changes, Financials & Innovations 5 Transformation program “Fit for Growth” Full Year Results 2024/25 27.05.2025
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Welcome Andreas Hürlimann Highlights Frank Rehfeld Business Performance Frank Rehfeld Financial Results Thomas Mellano Outlook Frank Rehfeld Sustainability Frank Rehfeld Board Changes and Dividend Proposal Andreas Hürlimann 6 Agenda 27.05.2025Full Year Results 2024/25
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A leading company in electrical measurement 27.05.2025Full Year Results 2024/25 7 Renewable Energy Energy Distribution & High Precision Track Five Businesses AutomotiveAutomation FY 2024/25 Sales CHF m 86.3 86.2 44.7 44.8 44.9 Δ CHF -28.0% -12.5% -36.9% -26.5% -19.2% Δ constant exchange rates -27.2% -11.6% -36.0% -25.9% -18.2%
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Automation impacted by the weak global investment climate and continued high stock levels Automotive gained momentum in the second half of the year by regaining market share and project ramp ups Renewable Energy recorded a significant decrease due to high inventories in Europe/USA while strengthening its position in China EDHP – Demand for DC meters dropped due to delays in rollout of charging infrastructure Sales distribution by business 27.05.2025Full Year Results 2024/25 8
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Drives, robots, tooling machines, elevators, and HVAC 27.05.2025Full Year Results 2024/25 9 Automation Significant slowdown due to weak global investment and high inventories; situation improved in Q4 with normalized stock levels and rising short-term orders In China, LEM saw slight growth and gained market share Design activities for new projects have picked up again in most markets FY FY Q4 Q4 2024/25 2023/24 2024/25 2023/24 In CHF m 86.3 120.0 21.3 25.6
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Battery (EV & CE), motor control, and onboard charging 27.05.2025Full Year Results 2024/25 10 Automotive Business picked up again in the second half of the year Robust growth in China driven by the expanding EV market and regained market share Additional momentum from EV and hybrid project ramp-ups as well as truck battery management in Europe and the Americas Further traction expected in the coming year, which is reflected in the 51.8% increase in bookings FY FY Q4 Q4 2024/25 2023/24 2024/25 2023/24 In CHF m 86.2 98.6 23.8 21.5
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Solar and wind 27.05.2025Full Year Results 2024/25 11 Renewable energy Significant decrease in EU/US markets Europe and the USA suffered from high inverter inventories, which also slowed exports from China Domestic business in China developed satisfactorily, and LEM strengthened its position in a consolidating market FY FY Q4 Q4 2024/25 2023/24 2024/25 2023/24 In CHF m 44.7 70.8 9.7 13.5
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Charging stations, smart grid, energy storage, and high precision 27.05.2025Full Year Results 2024/25 12 Energy distribution and high precision Significant market divergence within the business DC meters dropped significantly due to delayed charging infrastructure rollout in Western markets; whereas demand from Chinese manufacturers for export to Europe and USA markets increased Business with uninterruptible power supply for data centers developed favorably High-precision solutions for medical devices remained stable FY FY Q4 Q4 2024/25 2023/24 2024/25 2023/24 In CHF m 44.8 60.9 10.3 15.8
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Trains, metro, and trackside 27.05.2025Full Year Results 2024/25 13 Track Business in Europe subdued due to expiring retrofitting projects; follow-up orders will not start before the third quarter 2025/26 Comparison with 2023/24 influenced by high back log from the year before Business continues to follow long investment cycles and offers steady, albeit slower development opportunities FY FY Q4 Q4 2024/25 2023/24 2024/25 2023/24 In CHF m 44.9 55.5 10.9 12.7
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China showed clear signs of stabilization, most noticeable in Automation, Automotive and EDHP, bookings jumped by 81.5% compared to last year Rest of Asia, particularly Korea and Japan, was characterized by a broad downturn LEM's business in Europe saw a significant decline in demand across most segments, only Automotive showed a certain resilience thanks to new OEM project wins and project ramp-ups In the Americas, LEM recorded sequential improvement in Automotive in the fourth quarter, while the other businesses remained weak Sales distribution by region 27.05.2025Full Year Results 2024/25 14
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Welcome Andreas Hürlimann Highlights Frank Rehfeld Business Performance Frank Rehfeld Financial Results Thomas Mellano Outlook Frank Rehfeld Sustainability Frank Rehfeld Board Changes and Dividend Proposal Andreas Hürlimann 15 Agenda 27.05.2025Full Year Results 2024/25
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Starting from low levels in the first half year, bookings further normalized. Book-to-bill ratio rose to 0.97 in Q4 2024/25, compared to 0.82 in Q3 2024/25 and 0.85 for the financial year 2024/25 Sales declined 24.4%; at constant exchange rates, the decrease was 23.5%; in sequential terms, Q4 2024/25 sales were up 2.3% compared to Q3 2024/25 Gross margin decreased only slightly, despite the under-absorption of production fixed costs thanks to continuous efforts in optimizing production costs and procurement activities EBIT declined by 76.7%; the EBIT margin amounted to 6.1%, excluding restructuring costs for the “Fit for Growth” program, EBIT margin would have reached 8.7% 27.05.2025Full Year Results 2024/25 16 Performance at a glance FY 24/25 Q4 24/25 CHF m vs 23/24 vs 23/24 Orders received 262.2 +7.8% +14.6% Sales 306.9 -24.4% -14.7% EBIT 18.9 -76.7% -110.7% Net profit 8.4 -87.2% -137.4% FY 2024/25
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Gross margin Gross margin decreased by 340 basis pts: Gross profit margin fell only slightly to 43.2%, in line with the long-term average Achieved through improved efficiency in production and procurement, even with under-absorption of fixed costs due to lower volumes 27.05.2025Full Year Results 2024/25 17 FY FY Q4 Q4 2024/25 2023/24 2024/25 2023/24 In CHF m 132.6 189.2 31.9 40.3 In % of sales 43.2% 46.6% 41.9% 45.2%
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SG&A SG&A increased by 470 basis pts of sales: SG&A costs declined as a first result of measures to reduce the cost base 27.05.2025Full Year Results 2024/25 18 FY FY Q4 Q4 2024/25 2023/24 2024/25 2023/24 In CHF m 70.7 74.4 16.9 20.3 In % of sales 23.0% 18.3% 22.2% 22.7%
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R&D R&D investments on a high level of 11.5% of sales: Continued innovation to extend technological leadership; LEM designed over 20 new products and launched over 15 customized versions Stable overall engineering headcount, with an increase in capabilities in Shanghai and Munich to strengthen customer support and drive ICS innovation 27.05.2025Full Year Results 2024/25 19 FY FY Q4 Q4 2024/25 2023/24 2024/25 2023/24 In CHF m 35.3 33.9 8.4 8.4 In % of sales 11.5% 8.3% 11.1% 9.4%
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Negative foreign currency effects due to the appreciation of the CHF against major currencies Higher average debt led to increased interest expenses of CHF 1.7 million 27.05.2025Full Year Results 2024/25 20 Financial expense FY FY Q4 Q4 CHF m 2024/25 2023/24 2024/25 2023/24 Exchange effect (3.9) (3.3) (1.1) 1.1 Other financial expense & income (4.5) (2.8) (1.4) (0.8) Total (8.4) (6.1) (2.5) 0.3
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Our expected tax rate increased because of an unfavorable country profit mix Positive one-offs allowed to partially offset this negative impact 27.05.2025Full Year Results 2024/25 21 Income taxes FY FY % 2024/25 2023/24 Expected income tax rate 22.5 16.3 Expected withholding tax rate 4.6 (0.1) Expected tax rate 27.1 16.2 Effect of change in tax rate on deferred tax 0.8 (2.3) Permanent differences (3.6) (0.5) Other differences (4.4) (0.5) Total 19.9 12.9
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Income statement 27.05.2025Full Year Results 2024/25 22 Restructuring costs are related to the redundancy plan under our Fit for Growth program FY FY Q4 Q4 CHF m 2024/25 2023/24 Change 2024/25 2023/24 Sales 306.9 405.8 -24.4% 76.0 89.2 Gross margin % 43.2% 46.6% -3.4%pt 41.9% 45.2% Operating expense (121.6) (108.1) +12.5% (33.1) (28.6) Restructuring costs (7.9) EBIT 18.9 81.1 -76.7% (1.3) 11.8 EBIT margin % 6.1% 20.0% -13.8%pt -1.7% 13.2% Net financial expenses (8.4) (6.1) +37.9% (2.5) 0.3 Income tax (2.1) (9.6) -78.4% 0.1 (2.2) Net profit 8.4 65.3 -87.2% (3.7) 9.9 Net profit margin % 2.7% 16.1% -13.4%pt -4.9% 11.1%
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Balance sheet 27.05.2025Full Year Results 2024/25 23 • Non-current assets increased, mainly due to our new production site in Malaysia, our digitalization program and the increase of our deferred tax assets • Net working capital decreased resulting in improved free cash flow • Equity ratio was down to 36.4% CHF m 31.3.2025 31.3.2024 Net working capital 68.5 76.5 Noncurrent assets 181.8 172.6 Noncurrent liabilities (102.1) (38.8) Net operating assets 148.2 210.2 Net cash/(debt) (90.1) (43.1) Equity 125.8 176.7 Equity ratio 36.4% 51.3% Days of sales outstanding 81 76 Days of inventory outstanding 137 110 Days of payables outstanding 60 47
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Cash flow 27.05.2025Full Year Results 2024/25 24 • Cash flow from operating activities dropped as a consequence of the lower profit before tax • Lower investment levels, mainly due to the completion of the new plant in Malaysia FY FY CHF m 24/25 Act 23/24 Act Profit before tax 10.5 75.0 Adjustment for non-cash items and taxes paid 18.2 5.6 Cash flow before changes in net working capital 28.7 80.6 Cash flow from changes in net working capital 1.5 -6.2 Cash flow from operating activities 30.2 74.4 Cash flow from investing activities -16.2 -31.6 Free cash flow 14.0 42.9 Cash flow from financing activities -18.7 -39.8 Change in cash and cash equivalents -4.7 3.1 Cash and cash equivalents at the beginning of the period 23.7 21.8 Exchange effect on cash and cash equivalents -0.3 -1.1 Cash and cash equivalents at the end of the period 18.7 23.7
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Welcome Andreas Hürlimann Highlights Frank Rehfeld Business Performance Frank Rehfeld Financial Results Thomas Mellano Outlook Frank Rehfeld Sustainability Frank Rehfeld Board Changes and Dividend Proposal Andreas Hürlimann 25 Agenda 27.05.2025Full Year Results 2024/25
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LEM is seeing encouraging signs of stabilization in the current year based on the upward trend in bookings, especially in Automotive, while uncertainties remain regarding inventories, particularly in Automation Greatest risks relate to the global impact of the US tariff policy causing uncertainty in all key markets Outlook – Financial Year 2025/26 27.05.2025Full Year Results 2024/25 26
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Welcome Andreas Hürlimann Highlights Frank Rehfeld Business Performance Frank Rehfeld Financial Results Thomas Mellano Outlook Frank Rehfeld Sustainability Frank Rehfeld Board Changes and Dividend Proposal Andreas Hürlimann 27 Agenda 27.05.2025Full Year Results 2024/25
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Executive remuneration linked to Scope 1-3 GHG reduction targets; leadership development supports ESG goals More on LEM’s ESG strategy, actions and impact can be found in the standalone Sustainability Report Solid foundations to build up the LEM sustainability strategy 28 Strong improvement on Sustainability Full Year Results 2024/25 27.05.2025 8 material ESG topics (* mandatory as per Swiss law) Scope 1-3 emissions reduced; 100% renewable electricity achieved at all sites Sustainability is embedded throughout the business, with clear responsibilities from the Strategy & Sustainability Committee to local Green Committees Initiatives launched including green commuting, nature programs and Climate Fresk workshops
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Welcome Andreas Hürlimann Highlights Frank Rehfeld Business Performance Frank Rehfeld Financial Results Thomas Mellano Outlook Frank Rehfeld Sustainability Frank Rehfeld Board Changes / Dividend Proposal Andreas Hürlimann 29 Agenda 27.05.2025Full Year Results 2024/25
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Ueli Wampfler to step down, no dividend for 2024/25 30 Board changes and dividend proposal Full Year Results 2024/25 27.05.2025 Ueli Wampfler not standing for re-election to the Board of Directors at the upcoming AGM Board of Directors and Executive Management thank him for 18 years of highly valued service and wish him all the best for the future LEM targets a payout ratio significantly above 50% of the consolidated net profit for the year Due to profitability and ongoing economic uncertainty, the Board of Directors proposes no dividend for the 2024/25 financial year However, LEM remains committed to sustain its attractive dividend policy in the future
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LEM provided significant returns to shareholders over the past 10 years 31 The long-term investor view Full Year Results 2024/25 27.05.2025 Share price development from 31 March 2015 to 31 March 2025: -11.2%% Distributed dividends over the past 10 years: CHF 439.4m (incl. FY 2024/25 proposal by BoD)
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Q&A 27.05.2025Full Year Results 2024/25 32
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The financial year runs from 1 April to 31 March 26 June 2025 Annual General Meeting for the financial year 2024/25 29 July 2025 First quarter results 2025/26 10 November 2025 Half year results 2025/26 6 February 2026 9 months results 2025/26 26 May 2026 Full year results 2025/26 25 June 2026 Annual General Meeting for the financial year 2025/26 29 June 2026 Dividend ex-date 1 July 2026 Dividend payment date Financial calendar and contact details 27.05.2025Full Year Results 2024/25 33 For further information Thomas Mellano, VP Finance Phone: +41 79 286 86 03 E-mail: investor@lem.com
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