PRESS RELEASE
Quarterly results as of 31 December 2015
LEM reports strong growth in the Automotive businesses and continuous
operating margin improvements
Fribourg, 16 February 2016 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces sales of CHF 67.2 million, an EBIT of CHF 15.8 million (EBIT margin23.5%) and net profit of CHF 11.7 million for Q3 of 2015/16 (1 October to 31December 2015). Free cash flow for the quarter was CHF 22.8 million thanks tostrong profitability and net working capital reduction.
First nine months of 2015/16 compared with first nine months of 2014/15:• Bookings amounted to CHF 194.2 million, a growth of 2.0%(CHF 190.4 million)• Sales totaled 198.7 million, an increase of 1.3% (CHF 196.2 million); at
constant exchange rates, sales increased by 4.6%.
• The book-to-bill ratio improved to 0.98 (0.97)• EBIT decreased by CHF 3.3 million to CHF 40.6 million (CHF 43.9million); less than the negative currency impact of CHF 4.9 million• Net profit for the period decreased by 5.0% to CHF 31.5 million(CHF 33.1 million)“Our team delivered a strong result for the first nine month of 2015/16 with sales up
by 1.3% despite the negative currency impact. Continued growth in China andrecovery in North America drove our sales performance. The Automotive segment
produced the strongest growth benefitting from record US car sales and China’s
government support for green cars. Our operating margin kept improving fromquarter to quarter thanks to a combination of the easing currency situation, theincreased share of low-cost production, our tight cost control and a favorable productmix. Our site in Bulgaria, now generating 9% of global output, shows promisingpotential to assume a broader portfolio of Group activities”, said François Gabella,
CEO of LEM.
Industry segment – sustained growth in China
Sales in the Industry segment totaled CHF 164.5 million in the first nine months of2015/16, down 3.0% on a year earlier. At constant exchange rates, sales increasedby 1.2%. Sales growth remained strongest in China (+16%) with robust performancein the renewable energies and high-precision businesses as well as stable sales inthe drives & welding and traction businesses. Sales in North America were stable(+0.3%) while the weak economic environment affected sales in Europe (–9%).
China was the single most important country with 33% of sales. Asia remained themost important region with 48% of sales. LEM achieved repeated success withrecently launched products and therefore ramped up production of these productfamilies.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.comEBIT decreased due to currency effects by 16.2%, from CHF 40.2 million in the firstnine months of 2014/15 to CHF 33.7 million in the first nine months of 2015/16,
representing an EBIT margin decrease from 23.7% to 20.5%.
−−−−

Sales in the drives & welding business slowed by 7% compared with a yearearlier. Business in China remained robust while most other regions softened
due to weak global capital goods investments. Overcapacities in customers’industries as well as in the transducer market continued to exert pressure onprices.
Sales in renewable energies & power supplies business increased by 8%.
Performance in China remained at a high level thanks to continued
investments in solar farms and wind parks. LEM observes that, after capturing
their domestic market, Chinese manufacturers increasingly target global
markets. LEM also observed a pickup in smart grid projects.
The traction industry continued its consolidation with the emergence of a
Chinese global player. LEM observed less activity globally and fewer newprojects. Sales decreased by 12%.
In the project driven high-precision business sales increased by 5%. HVDC
business in China continued on a high level. Activity in the test &measurement market was stable while medical applications slowed.

Automotive segment – support from strong markets in China and the US
Sales in the Automotive segment reached CHF 34.3 million, up 28.3% on the firstnine months of 2014/15. At constant exchange rates, sales increased by 25.8%. LEM
recorded growth in all regions. The strongest performance resulted in China (+56%)
and the US (+18%). For the first 9 months of 2015/16, EBIT jumped to CHF 6.9million compared with CHF 3.7 million a year earlier. The EBIT margin improved to20.3% (13.8%).
−−

In the conventional cars business, sales increased by 18%. LEM grew in linewith the market and kept its market share. LEM benefitted from record sales
in the US car industry.
Sales in the green cars business jumped by 72%. LEM benefitted fromgovernment support for green cars in China that the Company leveraged
thanks to its leading market position. Thanks to its broad product portfolio,
LEM continued to win new projects with Chinese car manufacturers.

Outlook – raising financial year 2015/16 guidance
LEM expects a stable business development for Q4 of 2015/16. Thus, Management
expects sales of around CHF 260 million for the financial year 2015/16 (previousforecast was CHF 250–260 million) and the EBIT margin for the financial year
2015/16 to be higher than 20% (previous forecast was 15% to 20%).

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

Media, investors and analyst conference call and webcast
François Gabella, CEO, and Andrea Borla, CFO, will provide a detailed presentationof the Q3 and 9 months 2015/16 results today at 10:00 CET at a media, investors
and analyst conference call.
Dial in details are:+41 (0)58 310 50 00+44 (0)203 059 58 62+1 (1)631 570 56 13

Switzerland & EuropeUKUSA

The conference call will simultaneously be webcast. Please follow the instructions inthe following link: http://services.choruscall.eu/links/lem160216.html
The link to the webcast and the presentation slides are available on the LEM website(www.lem.com), where the webcast will later be archived.
Financial calendar
The financial year runs from 1 April to 31 March

9 June 2016
30 June 2016
5 July 2016
7 July 2016

Year-end results 2015/16
Ordinary General Meeting of the Shareholders for the year
2015/16
Dividend ex-date
Dividend payment date

LEM – At the heart of power electronics
LEM is the market leader in providing innovative and high quality solutions formeasuring electrical parameters. Its core products - current and voltage transducers are used in a broad range of applications in drives & welding, renewable energies &power supplies, traction, high precision, conventional and green cars businesses.
LEM’s strategy is to exploit the intrinsic strengths of its core business, and to develop
opportunities in existing and new markets with new applications. LEM is a mid-size,
global company with approximately 1’350 employees worldwide. It has production
plants in Beijing (China), Geneva (Switzerland), Sofia (Bulgaria) and Machida(Japan). With regional sales offices near its customers’ locations, the company isable to offer a seamless service around the globe. LEM has been listed on the SIX
Swiss Exchange since 1986; the company’s ticker symbol is LEHN.
www.lem.com

For further information please contact
Andrea Borla, CFO
Phone: +41 22 706 12 50
Email: investor@lem.com

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

Appendix:
Key figures
In CHF millions

2014/15

2015/16

ChangeOrders received
Industry segment
Automotive segment
Total LEM

Q1
56.2
8.5
64.7

Q2
52.1
9.8
61.9

Q3
55.0
8.8
63.8

Q4
51.0
9.6
60.6

Q1
50.9
10.0
60.9

Q2
52.8
13.3
66.0

Q3
53.2
14.1
67.3Q3 to Q3 Q3 to Q2-3.2%+0.8%+60.4%+6.1%
+5.5%
+1.9%

Book-to-bill ratio
Industry segment
Automotive segment
Total LEM

Q1
1.00
0.99
1.00

Q20.911.04
0.93

Q30.98
1.00
0.99

Q4
0.99
0.96
0.99

Q10.981.06
0.99

Q20.91
1.12
0.94

Q30.981.08
1.00

Q3 to Q3 Q3 to Q2
±0.0%
+7.7%
+8.0%
-3.6%
+1.0%
+6.4%

Sales
Industry segment
Automotive segment
Total LEM

Q156.58.665.0

Q257.1
9.4
66.5

Q356.08.864.7Q451.5
10.0
61.5

Q1
52.1
9.4
61.5

Q2
58.2
11.8
70.0

Q354.2
13.0
67.2

Q3 to Q3 Q3 to Q2
-3.2%
-6.9%
+48.4%
+9.7%
+3.8%
-4.1%

EBIT
Industry segment
Automotive segment
Total LEM

Q1
12.6
1.0
13.5

Q2
14.4
1.6
16.0

Q3
13.2
1.1
14.3

Q4
9.7
0.6
10.3

Q1
9.2
1.4
10.5

Q2
12.1
2.3
14.4

Q3
12.5
3.3
15.8

Q3 to Q3 Q3 to Q2
-5.4%
+3.4%
+196.5% +42.5%+10.3%+9.7%

LEM Holding SA
Avenue Beauregard 11700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

Consolidated income statement
April to December
2015/16
2014/15
In CHF thousands
Sales
Cost of goods sold
Gross margin

198 723
196 210(106 904) (105 367)
91 81990 843

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT(20 018)(20 500)(10 877)(8)
206
40 623(18 465)(17 789)(11 076)(1)368
43 881(321)
93(590)(167)
148(3 203)

Profit before taxes

39 80540 660

Income taxes(8 324)(7 515)

Net profit of the period

31 48133 145

Financial expense
Financial income
Foreign exchange effect

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com