Landis+Gyr : Announces First Half FY 2023 Financial Results

AD HOC ANNOUNCEMENT

pursuant to Art. 53 LR

Cash Flow and Net Debt

Free Cash Flow (excl. M&A) was USD 5.1 million, an increase of USD 44.0 million, when compared to USD (38.9) million in H1 FY 2022. The Free Cash Flow was negatively impacted by higher operating working capital, driven by continued strategic inventory investments. Cash provided by operating activities was USD 24.0 million in H1 FY 2023 compared to USD (82.9) million in

the previous year period. In the period under review, capital expenditure (PP&E) was USD 18.7 mil- lion, an increase of 110.1% versus H1 FY 2022, which was mainly driven by new product intro- duction and upgrading manufacturing facilities.

As of September 30, 2023, the ratio of net debt to trailing twelve months Adjusted EBITDA was 0.67 times, with net debt of USD 134.2 million after the dividend payment in June 2023.

Outlook for FY 2023

Landis+Gyr reconfirms its outlook for FY 2023, provided at the Capital Markets Day in January 2023 and confirmed in May 2023, assuming broadly unchanged global economic conditions. As already communicated, Landis+Gyr expects a continuation of the strong net revenue trend in FY 2023, resulting in a low double-digit growth compared to FY 2022. With an anticipated further improvement of the supply chain cost situation, Landis+Gyr now expects the Adjusted EBITDA margin to come in around the upper end of the initially guided range of between 9% and 11% of net revenue. Free Cash Flow (excl. M&A) is confirmed to be between USD 60 million to USD 90 million as the elevated inventory situation is expected to partially normalize in H2

but will remain above historical averages to fulfill customer orders of large contracts won.

Update on Sustainability Efforts

The Science Based Targets initiative (SBTi) has assessed Landis+Gyr's near- and long-term emission reduction targets against their rigorous criteria and has recently approved them. As a Company committed to decarbonizing the grid, Landis+Gyr's targets are in line with the most ambitious pathway (1.5°C), as defined by the Paris Climate Accord. Landis+Gyr has committed to reach net-zero greenhouse gas emissions across the value chain by 2050. Furthermore,

the Company has committed to reduce scope 1 and 2 greenhouse gas (GHG) emissions by 42% until 2030 (versus 2021 base year) and to reduce scope 3 emissions also by 42% until 2030.

Landis+Gyr is now part of a group of over 3,000 leading companies with approved targets, who are taking action to combat climate change and move towards a greener, more sustainable future. As a leader in the decarbonization efforts, Landis+Gyr is part of the first group of com- panies to receive approval for net-zero targets.

In 2022, Landis+Gyr was able to help avoid more than 9.5 million tons of CO2 through its large installed smart metering base and strives to further increase its positive impact on the environ- ment through consistently high investments in innovative technologies and solutions.

Documents

The H1 FY 2023 earnings presentation, which forms part of this ad hoc announcement, as well as the Half Year Report 2023 are available on the Company's website at www.landisgyr.com/ investors/results-center/.