PRESS RELEASE
Q4 and year-end results for the financial year 2015/16
LEM maintains net profit despite challenging market and currency conditions –dividend of CHF 35 per share proposed
Fribourg, 9 June 2016 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces Q4 of 2015/16 sales of CHF 62.7 million, an EBIT of CHF 12.3 million
and net profit of CHF 12.0 million (1 January to 31 March 2016). For thefinancial year 2015/16, sales reached CHF 261.5 million, EBIT was CHF 52.9million and net profit was CHF 43.5 million.
Q4 of 2015/16 compared with Q4 of 2014/15:• Bookings amounted to CHF 62.3 million, an increase of 2.8%
(CHF 60.6 million)• Sales increased by 1.9% to CHF 62.7 million (CHF 61.5 million)• The book-to-bill ratio remained stable at 0.99 (0.99)• EBIT increased by 19.0% to CHF 12.3 million (CHF 10.3 million); the EBIT
margin was at 19.6% (16.8%)• Net profit for the period increased by 20.2% to CHF 12.0 million(CHF 10.0 million)On an annual basis:• Bookings increased by 2.2% from CHF 251.0 million to CHF 256.5 million• Sales reached CHF 261.5 million, an increase of 1.4% (CHF 257.8million); at constant exchange rates, sales increased by 3.6%
• The book-to-bill ratio increased to 0.98, from 0.97 a year ago• Gross margin was at 46.0% (45.9%)• Foreign exchange fluctuations negatively impacted the EBIT in theamount of CHF 3.2 million• EBIT declined by CHF 1.3 million from CHF 54.2 million to CHF 52.9
million; the EBIT margin was at 20.2% (21.0%)• Net profit for the year reached CHF 43.5 million, an increase of 0.8%
compared to the previous year
“The weak levels of global trade and manufacturing activity along with the strong
Swiss franc were the main sources of our external challenges during last year. The
consolidated result, however, proves that LEM is capable of maintaining strong
margins even under adverse conditions. China remained our most important country
and continued to grow across all businesses. We recorded our strongest growth in
the green cars and the renewable energies businesses. Overall, we not only
delivered a solid result in the financial year 2015/16, but also continued to take thenecessary measures to prepare our future. We kept strengthening LEM bythoroughly implementing our long-term strategy with a focus on market oriented
innovation, cost efficiency, and flexibility”, said François Gabella, CEO of LEM.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

Industry segment: stable business development
Sales in the Industry segment decreased by 2.7% to CHF 215.2 million in thefinancial year 2015/16. At constant exchange rates, sales increased by 0.3%. Sales
in China were up by 15%, with a positive contribution across all businesses. China
has thus expanded its position as the segment’s most important single country andnow accounts for 31% of Industry sales. Sales performance in the other regions wasweak, with Asia excluding China posting a sales decrease of 17% and sales in
Europe and North America decreasing by 7% and 3%, respectively. Asia was themost important region, accounting for 46% of Industry sales, followed by Europe with
41% and North America with 11%. The EBIT margin came in at 20.0% comparedwith 22.6% in the previous financial year.
−−−−

Sales in the drives & welding business slowed by 6% over the previous year.
China maintains its position as Asia’s manufacturing hub and as a result sales
to China increased while sales to the rest of Asia slowed. The other regions
were weak: the ongoing economic uncertainty affected industrial investment
activity in Europe and North America.
LEM increased the market share in the renewable energies & power supplies
business and benefitted from consistently high levels of investment in newsolar and wind capacities, especially in China and the US, and in battery
technology in South Korea. Sales in Japan declined after government
subsidies expired. Smart grid projects picked up. Sales increased by 5%.
Sales in the traction business decreased by 8%. Strong activity was observedin China and India for both domestic and export markets, but there werefewer new traction projects in Europe. Activity in high-speed trains was stable,
while there was some growth in light rail.
In the project-driven high-precision business, sales increased by 8%. The
greatest activity was recorded in China, India, and Japan. Test &measurement markets developed positively and medical markets were stable.
HVDC business remained at a high level.

Automotive segment: leap in green cars
Sales in the Automotive segment reached CHF 46.3 million in the financial year
2015/16, representing an increase of 26.1% on the financial year 2014/15. At
constant exchange rates, sales grew by 23.6%. LEM recorded strong growth in all
regions, especially in the US (+14%), China (+55%), Japan (+13%), and Germany(+33%). For the first time in the Automotive segment, Asia is the most importantregion, representing 47% of segment sales. Sales in China alone accounted for 31%of segment sales. North America is LEM’s second largest region with 44%, while
segment sales in Europe stood at 8%. EBIT reached CHF 9.9 million, up 129.9% on
the financial year 2014/15. The EBIT margin was 21.4%, compared with 11.8% oneyear ago. The margin increase resulted from volume growth, the currency situation,and a favorable product mix.
−Year-on-year sales in the conventional cars business grew by 11%. LEM
benefitted from the growth in the global car industry and won new projects
and platforms to support future growth. Continued success with recently
launched products for battery monitoring applications was recorded.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

−Sales in the green cars business jumped by 90%. This strong performance isbuilt on market share gains. LEM won new projects with Chinese car
manufacturers where government support for green cars provided extra
support. Increasing interest in 48 V applications for mild hybrid-electricvehicles is being observed, a market for which LEM already has goodproducts.

Dividend proposal to the ordinary General Meeting of Shareholders
The dividend of CHF 35 (compared with CHF 40 in the previous year) that the Boardof Directors will propose to the forthcoming ordinary General Meeting ofShareholders is a sign of trust in the company’s ability to continue generating strong
cash flows in the future. The proposal follows LEM’s dividend policy of distributing
significantly more than 50% of its consolidated net profit to shareholders andcorresponds to a payout ratio of 91.7%.
OutlookManagement assumes a stable economic situation in LEM’s important markets. As aconsequence, Management expects steady sales in most markets with the exceptionof China where growth is forecasted to continue, though at a slower pace. The main
growth drivers for LEM are expected to be the renewable energies businesses aswell as the green cars business. The unstable currency environment will remain achallenge for the Company and underlines the importance of adapting the global
footprint of all its activities. LEM confirms the 15% to 20% EBIT margin target range.
Media and analyst conference and webcast
Andreas Hürlimann, Chairman of the Board of Directors, François Gabella, CEO, andAndrea Borla, CFO, will provide a detailed presentation of Q4 and financial year
2015/16 results today at 10:30 CEST at a media and analyst conference in Zurich.
Watch the media and analyst conference via a live video webcast. The link to thewebcast and the presentation slides are also available in the Investor Relations
section of the LEM website (www.lem.com), where the webcast will later also bearchived.
Detailed information on the financial year 2015/16 results and annual report
The full financial report is available from today, 9 June 2016, on www.lem.com>
Investor Relations>Financial Reports.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

Financial calendar
The financial year runs from 1 April to 31 March

30 June 2016
5 July 2016
7 July 2016
11 August 2016
10 November 201616 February 2017
1 June 201722 June 201730 June 2017
4 July 2017

Ordinary General Meeting of Shareholders for the year
2015/16
Dividend ex-date
Dividend payment date
First quarter results 2016/17
Half-year results 2016/17
Third quarter results 2016/17
Year-end results 2016/17
Ordinary General Meeting of Shareholders for the year
2016/17
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 1’400 employees worldwide. It has production
plants in Beijing (China), Geneva (Switzerland), Sofia (Bulgaria) and Tokyo (Japan).
With regional sales offices near its customers’ locations, the company is able 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 1250
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
66.0Q353.2
14.1
67.3

Q450.8
11.562.3

Q4 to Q4 Q4 to Q3
-0.4%
-4.5%
+19.8%-18.4%+2.8%-7.4%

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

Q1
1.00
0.99
1.00

Q2
0.91
1.04
0.93

Q3
0.98
1.00
0.99

Q40.990.96
0.99

Q10.981.06
0.99

Q20.91
1.12
0.94

Q3
0.98
1.08
1.00

Q4
1.00
0.96
0.99

Q4 to Q4 Q4 to Q3
+1.0%
+2.0%
±0.0%
-11.1%
±0.0%
-1.0%

Sales
Industry segment
Automotive segment
Total LEM

Q156.5
8.6
65.0

Q2
57.1
9.4
66.5

Q3
56.0
8.8
64.7

Q451.510.0
61.5

Q152.1
9.4
61.5

Q2
58.2
11.8
70.0

Q3
54.2
13.0
67.2

Q4
50.7
12.0
62.7

Q4 to Q4 Q4 to Q3
-1.6%
-6.4%
+20.2%
-7.4%
+1.9%
-6.6%

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

Q4
9.3
3.0
12.3

Q4 to Q4 Q4 to Q3-4.1%-25.4%+374.9%-9.1%+19.0%-22.0%LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

Consolidated income statement

April to March
2015/16 2014/15
In CHF thousands
Sales
Cost of goods sold
Gross margin

261 454 257 757(141 061) (139 366)
120 393 118 392

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT(25 855)(27 323)(14 602)(6)300
52 908(25 156)(24 075)(15 337)(1)
386
54 209

(361)
116
987

(251)
199
(2 622)

Profit before taxes

53 65051 535

Income taxes(10 163)(8 404)

Net profit for the year

43 48743 131

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