LEM : Financial Half Year Report 2025/26

About this update from Lem Holding Sa

Financial Half-Year Report 25 | 26 ‌Contents LEM Group Interim consolidated statement of financial position Interim consolidated income statement Interim consolidated statement of comprehensive income Interim consolidated statement of changes in equity Interim consolidated cash flow statement Notes to the interim consolidated financial statements ‌of financial position Assets In CHF thousands Notes 30.9.2025 31.3.2025 Current assets Cash and cash equivalents 20,427 18,703 Accounts receivable 67,989 68,023 Inventories 51,996 57,639 Income tax receivable 12 7,000 12,723 Other current assets 5,792 6,700 Total current assets 153,204 163,788 Non-current assets Property, plant and equipment 78,510 85,480 Right-of-use assets 28,622 30,928 Intangible assets 9,391 9,684 Deferred tax assets 12 51,915 52,077 Other non-current assets 8 3,765 3,648 Total non-current assets 172,203 181,816 Total assets 325,407 345,604 Liabilities and equity In CHF thousands Notes 30.9.2025 31.3.2025 Current liabilities Accounts payable 23,492 33,007 Accrued expenses 26,211 27,593 Lease liabilities 3,870 3,679 Income tax payable 12 1,852 2,979 Current provisions 6 2,740 7,521 Interest-bearing loans and borrowings 42,422 41,171 Other current liabilities 1,519 1,801 Total current liabilities 102,105 117,753 Non-current liabilities Non-current lease liabilities 28,071 30,405 Non-current provisions 6 1,846 943 Deferred tax liabilities 12 2,034 2,526 Interest-bearing loans and borrowings 7 59,812 67,660 Other non-current liabilities 576 546 Total non-current liabilities 92,339 102,080 Total liabilities 194,444 219,833 Equity Share capital 570 570 Treasury shares (1,309) (1,872) Reserves (4,750) (2,145) Retained earnings 136,452 129,219 Total equity 9 130,963 125,771 Total liabilities and equity 325,407 345,604 ‌Interim consolidated income statement April to September In CHF thousands Notes 2025/26 2024/25 Sales 148,258 156,550 Cost of goods sold (89,507) (87,516) Gross profit 58,751 69,033 Sales expenses (14,242) (14,428) Administration expenses (17,278) (21,957) Research & development expenses (14,608) (18,483) Restructuring (1,452) 0 Other income 198 16 Operating profit 10 11,369 14,181 Financial expenses (2,415) (1,978) Financial income 65 131 Foreign currency exchange effect (725) (2,296) Profit before tax 8,293 10,038 Income taxes 12 (1,501) (1,460) Net profit 6,792 8,578 Earnings per share, in CHF Basic earnings per share 5.96 7.53 Diluted earnings per share 5.94 7.51 The accompanying notes are an integral part of the interim consolidated financial statements. ‌of comprehensive income April to September In CHF thousands Notes 2025/26 2024/25 Net profit for the period recognized in the income statement 6,792 8,578 Other comprehensive income to be reclassified to profit and loss in subsequent periods Currency translation difference (1,963) (1,221) Income tax 201 150 Total other comprehensive income to be reclassified to profit and loss in subsequent periods (1,762) (1,071) Other comprehensive income not to be reclassified to profit and loss in subsequent periods Recognised surplus on defined benefit plans 8 270 (1,257) Deferred tax on other comprehensive income (38) 177 Net gain/(loss) on equity instruments at fair value through other comprehensive income Total other comprehensive income not to be reclassified to profit and loss in subsequent periods 233 (1,080) Other comprehensive income /(loss) for the period, net of tax (1,530) (2,151) Total comprehensive income for the period 5,262 6,427 ‌of changes in equity Attributable to shareholders Notes Share Treasury Capital Translation Retained Total In CHF thousands capital shares reserve reserve earnings equity 1 April 2024 570 (1,988) 13,931 (15,107) 179,272 176,677 Net profit for the period 8,578 8,578 Other comprehensive income/(loss) (1,221) (930) (2,151) Total comprehensive income (1,221) 7,648 6,427 Share-based payments, net of transactions in own equity 11 (261) (261) Dividends paid 9 (56,936) (56,936) Movement in treasury shares 9 481 (481) 239 239 30 September 2024 570 (1,507) 13,450 (16,328) 129,962 126,147 1 April 2025 570 (1,872) 13,815 (15,960) 129,219 125,771 Net profit for the period 6,792 6,792 Other comprehensive income/(loss) (1,963) 434 (1,530) Total comprehensive income (1,963) 7,226 5,262 Share-based payments, net of transactions in own equity 11 (112) (112) Dividends paid 9 0 Movement in treasury shares 9 563 (642) 119 40 30 September 2025 570 (1,309) 13,173 (17,923) 136,452 130,962 ‌Interim consolidated cash flow statement April to September In CHF thousands Notes 2025/26 2024/25 Cash flow from operating activities Profit before tax 8,293 10,038 Adjustment for non-cash items 14,284 12,077 Interest received/paid and taxes paid 677 (6,763) Cash flow before changes in net working capital 23,254 15,352 Cash flow from changes in net working capital (13,601) (18,028) Cash flow from operating activities 9,653 (2,675) Cash flow from investing activities Investment in fixed assets (3,485) (10,028) Investment in intangible assets (442) (166) Increase (-) in other non-current assets (151) (1,901) Decrease (+) in other non-current assets 0 3,175 Cash flow from investing activities (4,077) (8,920) Cash flow from financing activities Treasury shares acquired (-) 9 (2,574) (3,639) Treasury shares divested (+) 9 3,137 4,120 Payment of lease liabilities (1,471) (1,770) Dividends paid to the shareholders of LEM HOLDING SA 9 0 (56,936) Increase (+) in financial liabilities 7 129,200 92,000 Decrease (-) in financial liabilities 7 (130,975) (26,800) Cash flow from financing activities (2,683) 6,976 Change in cash and cash equivalents 2,893 (4,620) Cash and cash equivalents at the beginning of the period 18,703 23,710 Exchange effect on cash and cash equivalents (1,169) (462) Cash and cash equivalents at the end of the period 20,427 18,628 ‌Notes to the interim consolidated financial statements ‌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. ‌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. ‌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 ‌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. ‌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 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. ‌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. ‌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. ‌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). ‌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. ‌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. ‌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. ‌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. ‌Changes in scope of consolidation There are no changes in scope of consolidation. ‌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: [email protected] ‌Address LEM HOLDING SA Route du Nant-d'Avril 152 1217 Meyrin Geneva, Switzerland https://www.lem.com

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