PRESS RELEASE
Half year results from April to September for the financial year 2014/15
LEM reports continued sales growth and strong EBIT marginFribourg, 13 November 2014 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces sales of CHF 131.5 million, an EBIT of CHF 29.6 million and net
profit of CHF 21.5 million for the first half of 2014/15 (1 April to 30 September2014).
First half of 2014/15 compared with first half of 2013/14• Bookings amounted to CHF 126.6 million, increasing by 1.9%
(CHF 124.3 million)• Sales increased by 3.6% to CHF 131.5 million; at constant exchange
rates sales increased by 7.2%
• Gross margin was at 46.3% (46.5%)• EBIT decreased by 2.1% to CHF 29.6 million; the EBIT margin reached22.5% (23.8%)• Net profit for the period was CHF 21.5 million, a decrease of 12.4%(CHF 24.5 million)
Q2 of 2014/15 compared with Q1 of 2014/15:• Bookings amounted to CHF 61.9 million, a decrease of 4.4%
(CHF 64.7 million)• Sales reached CHF 66.5 million, an increase of 2.2% (CHF 65.0 million)• The book-to-bill ratio lowered to 0.93 (1.00)• EBIT improved by 18.4% from CHF 13.5 million to CHF 16.0 million; theEBIT margin was at 24.1% (20.8%)• Net profit for the period increased by 0.4% to CHF 10.8 million(CHF 10.7 million)“We have achieved sales growth across most businesses and kept delivering highoperating margins above our target range. We have continued to renew our productportfolio, increased production capacity and maintained our high service level. We
keep ramping up our new site in Bulgaria, increasing our workforce from 27 to 97
employees within one year. The known market trends continued during the reporting
period. Due to lack of visibility customers keep low levels of stock, issued orders withever shorter lead times and thereby required high flexibility from us. Due to the strong
growth across most businesses, China is now our biggest market and Asia has
surpassed Europe as the biggest region in terms of sales”, said François Gabella,CEO of LEM.
Industry segment: Asia surpassed Europe to become the most importantregionSales in the Industry segment reached CHF 113.6 million in the first half of 2014/15,representing an increase of 3.4% compared with the same period in 2013/14. At

LEM Holding SA
Avenue Beauregard 1
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Switzerland

Tel. : +41 26 460 10 30
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constant exchange rates, sales increased by 6.8%. LEM’s sales growth was driven
by continued strong growth in China across most businesses, export-led growth inJapan, new projects in the traction market and market share gains across mostbusinesses. LEM recorded strong demand from the solar industry for some of therecently launched product families, for which production capacity was significantlyincreased. The EBIT decreased from CHF 27.7 million for the first half of 2013/14 by
2.5% to CHF 27.0 million for the first half of 2014/15.
LEM recorded the strongest sales growth in China (+17%). Sales in Europe
increased by 2% on the back of a robust performance mainly in Eastern Europe while
North America declined by 17%, triggered by the continued relocation of some of thecompany’s target industries to Asia. For the first time, Asia is the biggest region forLEM, accounting for 45% of industry sales. Europe ranks second with 43% of sales
followed by North America with 10% of sales.
----

Sales in the drives & welding business increased by 1% compared with thefirst half of 2013/14. LEM observed a sustained transfer of production to Asia.
Consequently, sales were driven by growing Asian markets, particularly
China, and weakening markets in Europe and North America. In Japan, due
to the weakening Japanese yen, the export-led growth provided tailwinds tothe local industry.
Sales in renewables & power supplies weakened by 3%. Investments inrenewable energies in China, India and Japan remained on a high level.
Business activity in Europe was stable with support from offshore windprojects, but activity in North America was weak.
The traction business recorded strong performance with sales growth of 35%.
LEM was particularly successful with its energy metering application, winningmajor new contracts in Europe. In addition, LEM recorded increased sales forhigh-speed train applications in China, where about 5’000 km of high-speedlines are to be completed in 2014. Activity in light rail applications remainedhigh.
The high-precision business recorded weak business activity due to lower
investments in medical and test & measurement applications. Sales declined
by 26%, yet LEM increased its market share.

Automotive segment: growth in the green cars business
Sales in the Automotive segment reached CHF 17.9 million in the first half of2014/15, up 5.0% compared with the same period in 2013/14. At constant exchange
rates, sales increased by 9.7%. Sales growth in the Automotive segment accelerated
in the second quarter of 2014/15, with sales growing by 9.7% compared with the firstquarter. This performance can be attributed to increased sales in the green cars
business in China and Japan. The EBIT remained stable with CHF 2.6 million in thefirst six months of 2014/15 compared with CHF 2.5 million in the first half of 2013/14.
-In the conventional cars business, sales grew by 2% compared with the firsthalf of 2013/14. LEM achieved this result thanks to the consistent demand forthe battery management solution, mainly in the US, China and Japan.
The recovery in the green cars business continued during the reporting
period, driven by new hybrid car platforms in China and Japan that went into

LEM Holding SA
Avenue Beauregard 1
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Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
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production. In the first half of 2014/15, sales were 20% up on the first half of2013/14, but still below expectations. LEM continues to win new projects withChinese car manufacturers.
OutlookIn the second half of 2014/15 LEM expects business activity in the Industry segment
to slow due to the seasonality in the solar business during the winter months, aweaker Q3 due to fewer working days and slowing activity in Europe. LEM expects
sales growth in the Automotive segment to continue thanks to the start of productionof new platforms. The financial year 2014/15 will witness a high number of productlaunches. Product prices across all businesses will remain under pressure.
For the full financial year 2014/15 management expect sales of CHF 250 to 260
million compared with CHF 245.6 million in the financial year 2013/14. The full-year
EBIT margin is expected to remain above 20%.

Media, investors and analyst conference call and webcast
François Gabella, CEO, and Julius Renk, CFO, will provide a detailed presentation ofhalf year results today at 10:00 CET at a media, investors and analyst conference
call. Dial in details are:+41 (0)58 310 50 00
Switzerland & Europe+44 (0)203 059 58 62 UK+1 (1)631 570 56 13USA
The conference call will simultaneously be webcast. Please follow the instructions in
the following link:
services.choruscall.com/dataconf/productusers/lem/mediaframe/9805/indexr.htm
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.
Detailed information on the half year 2014/15 results and half year report
The complete half year report 2014/15 in accordance with IAS 34 (interim financialreporting) is available on www.lem.com>Investor Relations>Financial Reports.
Financial calendar
The financial year runs from 1 April to 31 March

17 February 2015
4 June 2015
25 June 2015
30 June 2015
2 July 2015

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Third quarter results 2014/15
Year-end results 2014/15
Ordinary Shareholders’ Meeting for the year 2014/15
Dividend ex-date
Dividend payment dateTel. : +41 26 460 10 30Fax.: +41 26 460 10 39
www.lem.com

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 1’300 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
Julius Renk (CFO)
Phone: +41 22 706 1250Email: 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

2013/142014/15

ChangeOrders received
Industry segment
Automotive segment
Total LEM

Q1
56.6
8.5
65.1

Q2
49.9
9.3
59.3

Q3
50.1
8.5
58.7

Q4
55.1
8.3
63.5

Q1
56.2
8.5
64.7

Q2
52.1
9.8
61.9

Q2 to Q2 Q2 to Q1
+4.5%
-7.2%
+4.6% +14.8%
+4.5%
-4.4%

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

Q1
1.06
1.02
1.05

Q20.89
1.06
0.91

Q3
1.03
0.94
1.02

Q4
1.05
0.99
1.04

Q11.000.99
1.00

Q20.91
1.04
0.93

Q2 to Q2 Q2 to Q1+2.2%
-9.0%
-1.9%
+5.1%
+2.2%
-7.0%

Sales
Industry segment
Automotive segment
Total LEM

Q1
53.5
8.3
61.8

Q256.3
8.8
65.1

Q3
48.5
9.1
57.6

Q4
52.7
8.4
61.1

Q1
56.5
8.6
65.0

Q257.1
9.4
66.5

Q2 to Q2 Q2 to Q1+1.3%
+1.0%
+7.0%
+9.8%
+2.1%
+2.2%EBIT
Industry segment
Automotive segment
Total LEM

Q1
12.3
1.0
13.3

Q2
15.4
1.5
17.0

Q3
10.6
1.3
11.9

Q4
12.5
1.1
13.6

Q1
12.6
1.0
13.5

Q2
14.4
1.6
16.0

Q2 to Q2 Q2 to Q1-6.5% +14.6%+5.3% +68.7%-5.4% +18.4%

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 September
2014/15 2013/14
In CHF thousands
Sales
Cost of goods sold
Gross margin

131 497(70 579)
60 918

126 897(67 927)
58 969

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT(11 783)(12 454)(7 414)(1)332
29 598(11 565)(9 909)(7 338)(57)
125
30 224

Financial expense
Financial income
Foreign exchange effect

(73)
131
(1 879)(81)
46(710)

Profit before taxes

27 77729 480

Income taxes(6 287)(4 937)

Net profit of the period

21 491

24 542

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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