LEM : Financial Half Year Report 2022/23

Financial Half Year Report 22 | 23

Contents

LEM Group

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

Interim consolidated statement of financial position

Assets

in CHF thousands		Notes	30.9.2022		31.3.2022
Current assets
Cash and cash equivalents				23'334		17'198
Accounts receivable				85'452		80'096
Inventories				47'956		46'140
Income tax receivable		12		3'915		3'470
Other current assets				5'694		6'582
Total current assets				166'352	153'486
Noncurrent assets
Property, plant and equipment				64'628		60'574
Right-of-use assets				25'706		28'436
Intangible assets				4'741		4'072
Deferred tax assets		12		50'740		54'102
Other noncurrent assets				700		728
	Total noncurrent assets				146'515		147'911
	Total assets				312'867		301'397

Liabilities and equity

in CHF thousands		Notes	30.9.2022	31.3.2022
Current liabilities
Accounts payable				30'712		26'677
Accrued expenses				26'779		30'423
Lease liabilities				2'203		1'646
Income tax payable		12		3'068		3'793
Current provisions		6		512		94
Interest-bearing loans and borrowings	7		77'000		40'650
Other current liabilities				2'050		1'267
Total current liabilities				142'324		104'549
Noncurrent liabilities
Noncurrent lease liabilities				27'100		28'375
Noncurrent provisions		6		767		856
Deferred tax liabilities		12		3'328		3'469
Interest-bearing loans and borrowings		7		2'216
Other noncurrent liabilities	8		1'467		2'952
Total noncurrent liabilities				34'878		35'651
Total liabilities				177'202		140'200
Equity
Share capital				570		570
Treasury shares		9		(1'277)		(977)
Reserves		9		6'696		9'701
Retained earnings	9		129'675		151'904
Total equity				135'665		161'197
Total liabilities and equity				312'867		301'397

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Interim consolidated income statement

					April to September
		Notes	2022/23			2021/22
in CHF thousands
Sales					198'066			183'665
Cost of goods sold					(104'240)	(98'066)
Gross margin					93'826			85'600
Sales expenses					(13'675)			(14'109)
Administration expenses					(17'709)			(14'251)
Research & development expenses					(16'711)			(15'216)
Other income				22			90
Operating profit	10			45'752			42'114
Financial expenses				(717)			(226)
Financial income				165			177
Foreign currency exchange effect					(2'464)	(329)
Profit before taxes					42'736			41'736
Income taxes	12			(7'526)	(6'551)
Net profit					35'210			35'185
Earnings per share, in CHF
Basic earnings per share				30.90			30.87
Diluted earnings per share				30.88			30.87

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

Interim consolidated statement of comprehensive income

April to September

Notes

2022/23

2021/22

in CHF thousands

Net profit for the period recognized in the income statement

35'210

35'185

Other comprehensive income to be reclassified to profit

and loss in

subsequent periods

Currency translation difference

(3'749)

795

Income tax

446

(53)

Total other comprehensive income to be reclassified

to profit

and loss in

(3'303)

742

subsequent periods

Other comprehensive income not to be reclassified

to profit

and loss

in subsequent periods

Remeasurement gains/(losses) on defined benefit plans

8

(171)

3'905

Income tax

(518)

Total other comprehensive income not to be reclassified

to profit and loss

(171)

3'387

in subsequent periods

Other comprehensive income/(loss) for the period, net of tax

(3'475)

4'129

Total comprehensive income for the period

31'735

39'314

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Interim consolidated statement 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 2021

570

(1'156)

13'099

(3'917)

123'304

131'899

Net profit for the period

35'185

35'185

Other comprehensive income/(loss)

742

3'387

4'129

Total comprehensive income

742

38'572

39'314

Dividends paid

9

(47'858)

(47'858)

Movement in treasury shares

9

(160)

160

(57)

(57)

30 September 2021

570

(1'316)

13'259

(3'175)

113'961

123'298

1 April 2022

570

(977)

12'920

(3'219)

151'904

161'197

Net profit for the period

35'210

35'210

Other comprehensive income/(loss)

(3'303)

(171)

(3'475)

Total comprehensive income

(3'303)

35'039

31'735

Share-based payments

11

224

224

Dividends paid

9

(56'958)

(56'958)

Movement in treasury shares

9

(299)

299

(533)

(533)

30 September 2022

570

(1'277)

13'219

(6'523)

129'675

135'665

Interim consolidated cash flow statement

					April to September
		Notes	2022/23			2021/22
in CHF thousands
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxes					42'736			41'736
Adjustment for noncash items					8'721			8'127
Interest received/paid and taxes paid					(4'983)			(30'035)
Cash flow before changes in net working capital					46'474			19'828
Cash flow from changes in net working capital					(9'671)	(7'976)
Cash flow from operating activities					36'803			11'853
CASH FLOW FROM INVESTING ACTIVITIES
Investment in fixed assets					(10'587)			(6'783)
Investment in intangible assets				(3)			(76)
Increase in other assets				(95)			(53)
Decrease in other assets			74			131
Cash flow from investing activities					(10'611)			(6'781)
CASH FLOW FROM FINANCING ACTIVITIES
Treasury shares acquired		9			(4'457)			(7'215)
Treasury shares divested		9			3'923			7'158
Payment of lease liabilities				(917)			(1'165)
Dividends paid to the shareholders of LEM HOLDING SA		9			(56'958)			(47'858)
Increase in financial liabilities		7			94'150			67'200
Decrease in financial liabilities	7			(55'500)	(19'100)
Cash flow from financing activities					(19'759)			(980)
Change in cash and cash equivalents					6'433	4'092
Cash and cash equivalents at the beginning of the period					17'198			22'418
Exchange effect on cash and cash equivalents				(296)			238
Cash and cash equivalents at the end of the period					23'334	26'748

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Notes to the interim consolidated financial statements

1. General information

LEM Group (the Group) is a leading company in 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. Since 30 June 2022 LEM HOLDING SA is registered at Route du Nant-d'Avril 152, 1217 Meyrin.

2. Significant accounting principles

These unaudited consolidated financial statements for the six months ended on 30 September 2022 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 2022.

The accounting and valuation policies are consistent with those applied in preparing the annual consolidated financial statements for the year 2021/22.

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 in order to keep the accuracy of the original data.

Amendments in IFRS, effective as of January 2022, did not have a material impact on the interim consolidated financial state- ments. 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		Income statement of		Balance sheet		Balance sheet
	2022/23	2021/22	30.9.2022	31.3.2022
Currency		Average rate in CHF		Average rate in CHF		Half-year rate in CHF		Year-end rate in CHF
BGN		0.511		0.557		0.491		0.525
CNY		0.144		0.141		0.138		0.146
DKK		0.134		0.147		0.129		0.138
EUR		1.000		1.090		0.961		1.026
GBP		1.174		1.270		1.092		1.213
JPY		0.0072		0.0083		0.0068		0.0076
MYR		0.219		0.220		0.211		0.219
RUB		0.015		0.012		0.017		0.011
USD		0.965		0.914		0.980		0.923

Notes to the interim consolidated financial statements

4. Segment information

As of 1 April 2022, LEM Group decided to modify its organizational structure and to manage its business primarily on a geographic basis and therefore dissolved the two operating segments, Industry and Automotive.

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

• Region of Asia which includes China, Japan, South-Korea, India, South-East Asia;
• Region of Europe/Americas which includes Europe, Middle East, Africa, NAFTA and Latin America.

Although the reportable segments provide similar electronics components called transducers for applications in different customer sectors, each region is managed separately to better align 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.

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 inter-segment 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.

LEM Group has restated the sales and corresponding items of segment information for earlier periods.

As of 30 September 2022, LEM Group has not disclosed comparable segment information of the previous period's operating profit due to unavailable information to date, resulting from significant change of cost centers and allocations between segments and costs managed outside of the reportable segments.

Also, it was not possible to disclose the current period based on the old basis of segmentation as the necessary information is not available and not comparable.

Business segment information

Asia

Europe/Americas

Total

in CHF thousands

2022/23

2021/22

2022/23

2021/22

2022/23

2021/22

Sales

116'025

103'989

82'041

79'676

198'066

183'665

Operating profit

47'154

23'985

71'140

Other operating costs 1

(25'388)

Group operating profit

45'752

42'114

1  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.

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