PRESS RELEASE
Q1 results for the financial year 2016/17 (1 April to 30 June 2016)
LEM reports 8.7% sales growth and an EBIT margin of 20.0%
Fribourg, 11 August 2016 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces Q1 of 2016/17 results (compared with Q1 of 2015/16):• Bookings amounted to CHF 65.2 million, an increase of 7.2%
(CHF 60.9 million)• Sales increased by 8.7% to CHF 66.9 million (CHF 61.5 million); at
constant exchange rates sales increased by 6.1%
• The book-to-bill ratio reduced to 0.97 (0.99)• EBIT increased by 27.5% to CHF 13.4 million (CHF 10.5 million); the EBIT
margin increased to 20.0% (17.1%)• Net profit for the period rose by 21.3% to CHF 10.8 million(CHF 8.9 million)“In the first quarter of the new financial year 2016/17, we recorded sales growth in all
regional markets. Activity in the drives & welding business rebounded after several
sluggish quarters while the green cars business continued on its growth path. Ourprofitability remained on a high level. We advanced our strategy execution, especiallyin innovation. Our new products were well received by the markets and we built
capacities to meet growing demand. We launched digital output versions of HO andHLSR open-loop Hall Effect current transducers, giving us a leading edge in drives
and renewable energies markets. Still, we notice increasing economic uncertainty,
which translates in customers avoiding long-term orders. Also, exchange rate
volatility remains high”, said François Gabella, CEO of LEM.
Industry segment: resilient growth
Compared to Q1 of 2015/16, sales in the Industry segment increased by 5.4% toCHF 54.9 million in Q1 of 2016/17. At constant exchange rates, sales increased by
2.8%. LEM customers showed increasing interest in the Company’s development
support. Stronger industrial activity led to more demand from machinery andautomation producers. Sales in China slowed by 7% but all other major markets
delivered higher sales. Sales growth in Asia excluding China was up 20%, Europe
increased by 10% and North America by 9%. Asia was the most important regional
market, accounting for 49% of Industry sales (China alone accounted for 31%),
followed by Europe with 39% and North America with 12%. Businesses delivered
mixed sales performances: The drives & welding business and the high-precisionbusiness showed positive momentum with sales growth of 18% and 26%
respectively. However, the renewable energies & power supplies business slowed by
6% resulting in a less pronounced seasonal pickup than in previous years. The
traction business dropped by 7%. The EBIT margin came in at 19.4% compared with
17.6% in Q1 of 2015/16.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

Automotive segment: increasing acceptance for green cars supports growth
In Q1 of 2016/17, sales in the Automotive segment totaled CHF 12.0 million,
representing an increase of 27.1% on Q1 of 2015/16. At constant exchange rates,
sales grew by 24.2%. LEM recorded increased activity and sales growth in all
regional markets. Numerous enquiries and projects for hybrid, electric and 48 V
technology placed growing strain on the Company’s development capacities. LEM
secured the first project for a fuel cell platform using its new HAM transducer. Thegreen cars business contributed the majority of the sales growth (+150%) while theconventional cars business remained relatively stable (+2%). Sales growth reached
36% in China, 73% in Asia excluding China, 24% in Europe and 6% in North
America. The EBIT margin was 23.0% in Q1 of 2016/17, compared with 14.4% oneyear ago.
Financial calendar
The financial year runs from 1 April to 31 March

10 November 201616 February 2017
1 June 201722 June 201730 June 20174 July 2017

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 contactAndrea Borla (CFO)
Phone: +41 22 706 1250
Email: investor@lem.com

LEM Holding SA
Avenue Beauregard 11700 Fribourg
Switzerland

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

Appendix:Key figures
In CHF millions

2015/162016/17

ChangeOrders received
Industry segment
Automotive segment
Total LEM

Q1
50.9
10.0
60.9

Q2
52.8
13.3
66.0

Q3
53.2
14.1
67.3

Q4
50.8
11.5
62.3

Q1
52.7
12.5
65.2

Q1 to Q1 Q1 to Q4
+3.6%
+3.7%
+25.2%
+9.0%
+7.2%
+4.7%

Book-to-bill ratioIndustry segment
Automotive segment
Total LEM

Q10.981.06
0.99

Q20.911.120.94

Q30.98
1.08
1.00

Q4
1.00
0.96
0.99

Q10.961.050.97

Q1 to Q1 Q1 to Q4
-2.0%
-4.0%
-0.9%
+9.4%
-2.0%
-2.0%

Sales
Industry segment
Automotive segment
Total LEM

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

Q1
54.9
12.0
66.9

Q1 to Q1 Q1 to Q4
+5.4%
+8.3%
+27.1%
-0.4%
+8.7%
+6.7%

EBIT
Industry segment
Automotive segment
Total LEM

Q1Q2
12.1
2.3
14.4

Q3
12.5
3.3
15.8

Q4

Q1
10.6
2.8
13.4

Q1 to Q1 Q1 to Q4+16.3% +14.4%+103.6%-7.6%+27.5%+9.1%

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

9.2
1.4
10.5

9.3
3.0
12.3

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

Consolidated income statement

April to June
2016/17 2015/16
In CHF thousands
Sales
Cost of goods sold
Gross margin

66 907(36 317)30 59061 532(33 862)
27 670

Sales expenseAdministration expense
Research & development expense
Other expense
Other income
EBIT(6 825)(6 353)(4 050)(0)38
13 401(6 629)
(6 847)(3 713)(2)
26
10 507(10)1214(10)
25475

Profit before taxes

13 41810 996

Income taxes(2 648)(2 116)

Net profit of the period

10 770

8 880

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