Financial Half Year Report 2025/26

1. Interim consolidated statement of financial position

2. Interim consolidated income statement

3. Interim consolidated statement of comprehensive income
4. Interim consolidated statement of changes in equity

5. Interim consolidated cash flow statement
6. Notes to the interim consolidated financial statements

The accompanying notes are an integral part of the interim consolidated financial statements.

1. ‌General information

   LEM Group (the Group) is a leading company in the field of electrical measurement. LEM engineers best-in-class solutions for energy and mobility, ensuring that its customers' systems are optimized, reliable, and safe.

   The parent company of LEM Group is LEM HOLDING SA (the Company), which is a limited company incorporated in Switzerland.

2. ‌Significant accounting principles

   These unaudited consolidated financial statements for the six months ended on 30 September 2025 have been prepared in accordance with International Accounting Standard (IAS) 34 "Interim Financial Reporting". They do not include all the information and disclosures presented in the annual consolidated financial statements and should therefore be read in conjunction with those for the year ended 31 March 2025.

   The accounting and valuation policies are consistent with those applied in preparing the annual consolidated financial statements for the year 2024/25.

   The preparation of the interim consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and related disclosures at the date of the interim financial statements. These estimates are based on management's best knowledge of current events and actions that the Group may undertake in the future. However, actual results could differ from those estimates.

   The financial information is presented in thousands of CHF. The totals are calculated with the original unit amounts, which could lead to rounding differences. These differences in thousands of units are not changed to keep the accuracy of the original data.

   Amendments in IFRS, effective as of January 2025, did not have a material impact on the interim consolidated financial statements. The Group has not early adopted any standard or amendment that has been issued but is not yet effective.

3. ‌Exchange rates

   The exchange rates for the most significant currencies are as follows:

   		Income statement of 2025/26		Income statement of 2024/25		Balance sheet as at 30.9.2025		Balance sheet as at 31.3.2025
   Currency		Average rate in CHF		Average rate in CHF		Half-year rate in CHF		Year-end rate in CHF
   BGN		0.479		0.492		0.478		0.488
   CNY		0.113		0.123		0.112		0.122
   DKK		0.125		0.129		0.125		0.128
   EUR		0.936		0.962		0.935		0.954
   GBP		1.091		1.133		1.071		1.141
   JPY		0.0056		0.0058		0.005		0.006
   MYR		0.190		0.193		0.189		0.199
   RUB		0.010		0.010		0.010		0.010
   USD		0.813		0.885		0.797		0.882

4. ‌Segment information

   For management purposes, LEM Group is organized into two reportable segments as follows:

   • The Asia region, which includes China, Japan, South Korea, India, and South-East Asia.

   • The Europe/Americas region, which includes Europe, the Middle East, Africa, the NAFTA countries, and Latin America.

     Although the reportable segments provide similar electronics components called transducers for applications in different customer sectors, each region is managed separately in order to better align it with the location of the Group's customers and distribution partners and the unique market dynamics of each geographic region.

     The Group evaluates the performance of its reportable segments based on net sales and operating profit. Net sales for geographic segments are based on the location of customers. Operating profit for each segment includes net sales to third parties, related cost of sales, and operating expenses directly attributable to the segment.

     The operating profit for each segment excludes centralized headquarter support functions as well as certain research and development costs managed outside of the reportable segments.

     The segment information is presented net of intersegment transactions.

     The Group does not include intercompany transfers between segments for management reporting purposes. The reporting segments are presented in a manner consistent with the internal reporting.

     ‌Business segment information

     		Asia				Europe/Americas			Total
     In CHF thousands		2025/26	2024/25			2025/26	2024/25		2025/26	2024/25
     Sales		80,552	85,584			67,707	70,966		148,258	156,550
     Operating profit		20,188	22,541			15,027	23,763		35,215	46,304
     Other operating costs*									(23,846)	(32,123)
     Group operating profit									11,369	14,181

     *Those costs are managed outside of the reporting segments and are linked to centralized headquarter support functions as well as certain Research and development costs.

5. ‌Revenue information Regional information

   In CHF thousands		2025/26		2024/25
   Sales
   China		55,201		60,233
   Japan		7,815		7,906
   South Korea		5,263		6,932
   Rest of Asia		12,272		10,513
   Total for the Asia region		80,552		85,584
   Germany		12,513		16,584
   Italy		5,938		5,771
   Rest of EMEA		31,297		30,995
   USA		17,039		16,039
   Rest of Americas		919		1,576
   Total for the Europe/Americas region		67,707		70,966
   LEM Group		148,258		156,550

6. Current and non-current provisions Warranty and customer claims

   Provisions for warranty and customer claims have been estimated based on experience and the risk assessment of management. The warranty provision is expected to be used over the next five years.

   ‌Litigation and indirect taxes

   The Group reviews all legal claims and takes appropriate actions to support its position, and management estimates the reasonable risk to be provided for.

   Furthermore, the Company operates in multiple jurisdictions with complex legal and tax regulatory environments. Indirect tax provisions include disputes and uncertainties on non-income taxes (mainly VAT and sales taxes). They cover numerous separate cases whose detailed disclosure could be detrimental to the Group's interests. The Group does not believe that any of these cases will have a material adverse impact on its financial position.

7. ‌Financial liabilities

   LEM Group decreased its financial long-term liabilities to CHF 59.8 million (CHF 67.7 million on 31 March 2025) due to amortization of credit facilities.

8. ‌Retirement benefit obligations

   As of 30 September 2025, the retirement benefit obligation remains in a surplus amounting to CHF 3.1 million (CHF 3 million on 31 March 2025). Consistent with year-end, the full amount of the surplus has been recognised as per IFRIC 14 requirement.

9. ‌Equity

   During the Annual General Meeting held in Geneva on 26 June 2025, the shareholders approved the non distribution of an ordinary dividend (CHF 0.00 per share- prior year: ordinary dividend of CHF 50.00; total CHF 56.9 million).

   Within the framework of its market-making contract, LEM holds its own shares. On 30 September 2025, the Group held 1,494 shares (31 March 2025: 1,460).

10. ‌Operating profit

    Our sales decreased by 5.3% to CHF 148.3 million in the first half of 2025/26; at constant exchange rates, this represents a sales increase of 0.5%.

    Our gross margin stood at 39.6%, slightly down from 44.1% in the first half of 2025/26, with an EBIT amounting to CHF 11.4 million (decrease of 19.8% in the first half of 2025/26). Our operating profit margin for the first six months of 2025/26 was 7.7% compared with 9.1% a year earlier.

11. ‌Share-based payments

    Starting with financial year 2022/23, the Board of Directors of LEM HOLDING SA grants Senior Executives and Managers a long-term incentive plan composed of share-based performance share units ("PSUs").

    The number of shares obtained per PSU can thereby vary between 0% and 200% of the award, subject to continuous employment and depending on the achievement of pre-agreed performance conditions.

    The performance conditions include non-market and market conditions such as economic value added ("EVA"), absolute total shareholder return ("absolute TSR"), and total shareholder return measured relative to the SPI EXTRA® Total Return Index ("relative TSR"). The grant-date fair value estimate of market conditions is based on a Monte Carlo simulation. The performance conditions are measured over a period of three consecutive financial years starting with the financial year during which the award date occurs relevant for measuring the long-term performance.

    The Group accounts for the PSU as an equity-settled plan.

    These allotments are recognized as an expense representing the fair value of the services rendered by the beneficiaries. The fair value of the services is determined by reference to the fair value of the shares on the grant date. The performance conditions are considered when estimating the number of shares to be granted at the end of the vesting period. The benefits granted constitute expenses and are recognized on a straight-line basis over the vesting period in the income statement together with a corresponding increase in the consolidated reserves.

    		Grant date		Vesting period		30.9.2025 Income/(Expense)
    In CHF thousands
    Plan Cycle 2023/24 to 2025/26		19.7.2023		3 years		77
    Plan Cycle 2024/25 to 2026/27		17.7.2024		3 years		69
    Plan Cycle 2025/26 to 2027/28		16.7.2025		3 years		253
    Total						(33)

    The initial Cycle 2022/23 to 2024/25 plan was settled, with vesting on July 20th, 2025. Employees received shares based on meeting set conditions.

12. ‌Income taxes

    Income tax expense is calculated based on the best estimate of the applicable annual income tax rate expected for the full year.

    The Group operates in multiple jurisdictions with complex legal and tax regulatory environments. In certain of these jurisdictions, the Group has taken income tax positions that management believes are supportable and are intended to withstand challenges by tax authorities. Some of these positions are inherently uncertain and include those relating to transfer pricing matters and the interpretation of income tax laws applied to complex transactions. The Company periodically reassesses its tax positions. Considering all available information and the history of resolving income tax uncertainties, the Group believes that the ultimate resolution of such matters will not have a material effect on its financial statements.

    Differences between the final tax outcome and the amounts that were initially recorded impact the income and deferred taxes in the period in which such determinations are made. The Group calculates its expected average tax rate as a weighted average of the tax rates in the tax jurisdictions in which the Group operates.

    The Group recognised deferred income tax assets on carried forward tax losses to the extent there are sufficient estimated future taxable profits and/or taxable temporary differences against which the tax losses can be utilised. LEM recognized during this fiscal year tax losses carried forward for an amount of 2.5 million that can be carried forward for a limited period (seven years).

    The average tax rate of 18.2% is broadly in line with the year-end 2024/25 rate of 19.9% and increased compared to 14.5% in the first half of fiscal year 2024/25.

13. ‌Financial assets and liabilities

    Financial assets
    								At fair value
    								through
    		30.9.2025		31.3.2025		Amortized		profit and
    		Book value		Book value		cost		loss
    In CHF thousands
    Cash and cash equivalents		20,427		18,703		X
    Accounts receivable		67,989		68,023		X
    Derivative financial instruments - current		73						X
    Other current financial assets		3		1		X
    Other non-current financial assets		3,765		3,648		X
    Total		92,257		90,374

    Financial liabilities
    		30.9.2025 Book value		31.3.2025 Book value		Amortized cost		At fair value through profit and loss
    In CHF thousands
    Accounts payable		23,492		33,007		X
    Accrued expenses		26,211		27,593		X
    Derivative financial instruments - current		151		336				X
    Other current financial liabilities		42,422		41,171		X
    Other non-current financial liabilities		59,812		67,660		X
    Total		152,087		169,768

    Changes in liabilities arising from financing activities

    Cash impact									Non-cash impact
    		1.4.2024		Cash flows Inflow		Cash flows (outflow)			Fair value changes and Others			30.9.2024
    In CHF thousands
    Interest-bearing loans and borrowings		66,825		92,000		(26,800)			(338)			131,687
    Total		66,825		92,000		(26,800)			(338)			131,687

    Cash impact									Non-cash impact
    		1.4.2025		Cash flows Inflow		Cash flows (outflow)			Fair value changes and Others			30.9.2025
    In CHF thousands
    Interest-bearing loans and borrowings		108,831		129,200		(130,975)			(4,822)			102,234
    Total		108,831		129,200		(130,975)			(4,822)			102,234

    The management assessed that the fair value level of cash and cash equivalents, accounts receivables, other current and non-current assets, accounts payables, accrued expenses, and other current and non-current liabilities that are not measured at fair value are approximate to their carrying amounts in view of their short-term nature and are consequently not separately disclosed.

    The Group enters into derivative transactions such as currency risk reversal and forward contracts to hedge the USD, JPY and EUR risks. The purpose of these currency hedges is to manage the currency risks arising from the Group's operations.

    It is the Group's policy that no derivatives for speculative purposes shall be entered into.

    The main risks arising from the Group's financial instruments are foreign currency risks and credit risks, whereas the others are of minor or no impact.

    The Board of Directors reviews and agrees policies for managing each of those risks.

    The Group's net financial assets at fair value amount to CHF 73,000 as of 30 September 2025 (net financial liabilities of CHF 336,000 as of 31 March 2025) and are all classified under Level 2.

    During the last reporting period, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into and out of Level 3 fair value measurements.

14. ‌Changes in scope of consolidation

    There are no changes in scope of consolidation.

15. ‌Events after the balance sheet date

There was no event subsequent to the balance sheet date that requires adjustment to or disclosure in the financial statements.

‌Financial calendar

The financial year runs from 1 April to 31 March

‌6 February 2026 Nine-month results 2025/26

26 May 2026 Full-year results 2025/26 25 June 2026 Annual General Meeting of Shareholders for the financial year

2025/26

29 June 2026 Dividend ex-date

1 July 2026 Dividend payment date

Contact

Antoine Chulia, Chief Finance Officer Phone: +41 22 706 12 50

E-mail: investor@lem.com

‌Address

LEM HOLDING SA

Route du Nant-d'Avril 152 1217 Meyrin

Geneva, Switzerland

https://www.lem.com