PRESS RELEASE
Q3 and first nine months results from April to December for the financial year
2016/17
LEM maintains robust operating margins
Fribourg, 16 February 2017 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces first nine months of 2016/17 results (compared with first ninemonths of 2015/16):• Bookings amounted to CHF 200.0 million, an increase of 3.0%
(CHF 194.2 million)• Sales stagnated at CHF 197.8 million (CHF 198.7 million); at constantexchange rates sales decreased by 1.1%
• The book-to-bill ratio improved to 1.01 (0.98)• EBIT improved by 2.5% to CHF 41.7 million (CHF 40.6 million); the EBIT
margin increased to 21.1% (20.4%)• Net profit for the period rose by 3.8% to CHF 32.7 million(CHF 31.5 million)
Q3 of 2016/17 compared with Q3 of 2015/16:• Bookings amounted to CHF 67.7 million, an increase of 0.6%
(CHF 67.3 million)• Sales decreased by 3.0% to CHF 65.1 million (CHF 67.2 million)• The book-to-bill ratio improved to 1.04 (1.00)• EBIT decreased by 10.2% to CHF 14.1 million (CHF 15.8 million); theEBIT margin decreased to 21.7% (23.5%)• Net profit for the period decreased by 9.5% to CHF 10.6 million(CHF 11.7 million)“Business sentiment was volatile during the past nine months resulting in a flat sales
development. Still, we continued to adapt our organization to the changing businessenvironment and delivered robust operating margins ahead of last year’s levels. In
addition, we reaped the benefits of our innovation strategy: our new products enjoyedstrong market acceptance and we continually increased their production capacities.
To extend our leading edge we made headway with the setup of our new R&D
center: We signed a lease at the Parc Technologique de Lyon in Saint-Priest andstarted the recruiting process. We expect our R&D center in Lyon to be operational inApril 2017, less than 6 months after our launch decision”, said François Gabella,
CEO of LEM.
Industry segment: mixed business performance
Sales in the Industry segment totaled CHF 159.5 million in the first nine months of2016/17, down 3.0% on the same period a year earlier. At constant exchange rates,sales decreased by 3.5%.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

Sales in China slowed (-8%), while the rest of Asia showed a dynamic sales growth(+6%). The robust US economy supported LEM’s sales in North America (+10%), but
sales in Europe (-6%) were affected by a weak renewable energies market.
EBIT decreased from CHF 33.7 million for the first nine months of 2015/16 toCHF 32.4 million in 2016/17. The EBIT margin decreased slightly from 20.5% to20.3%.
---Sales in the drives & welding business grew by 9% compared with the firstnine months of 2015/16. LEM gained market share thanks to new products
and achieved higher sales in all regions.
The renewable energies & power supplies business remained volatile. Sales
slowed by 12% with all regions being affected.
The traction business slowed by 13%. LEM observed increasing reluctancefor investments in rail infrastructure globally, a situation that may persist for aprolonged period.
In the project driven high-precision business sales decreased by 3%. Activity
in North America (medical market) remained strong while most other regions
weakened.

Automotive segment: strong green cars business
Sales in the Automotive segment for the first nine months of 2016/17 reached
CHF 38.2 million, up 11.5% on the same period of 2015/16. At constant exchange
rates, sales increased by 10.3%. Most regions contributed to the sales growth.
EBIT for the first nine months of 2016/17 increased by 33.1% to CHF 9.2 million
thanks to additional volumes, favorable product mix and continued successes in theChinese green cars business. Going forward LEM expects increasing competitive
pressure as this growing market attracts interest from players inside and outside theAutomotive industry.
-In the conventional cars business, sales decreased by 7%. A weaker US car
market with year-end stock level adjustments affected LEM’s sales.
Sales in the green cars business increased by 64%. Reduction of government
subsidies in China slowed growth rates in the Chinese green cars market in
the course of Q3 of 2016/17. Activity in Europe picked up.

Outlook
LEM expects a stable business development for Q4 of 2016/17. Seasonality might
influence sales in China (Chinese New Year). Customers are likely to remain
cautious, maintaining their short-term ordering policy.
For the full financial year 2016/17, Management confirms its sales forecasts ofCHF 260–270 million; this compares with CHF 261.5 million for full-year 2015/16.
The EBIT margin is expected to be above 20%.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
SwitzerlandTel. : +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 first nine months of 2016/17 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 in
the following link: http://services.choruscall.eu/links/lem170216.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

23 May 2017*29 June 2017*
4 July 2017*
6 July 2017*

Year-end results 2016/17
Ordinary General Meeting of Shareholders for the financialyear 2016/17
Dividend ex-date
Dividend payment date

* New dates

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

2015/162016/17

ChangeOrders received
Industry segment
Automotive segment
Total LEM

Q150.910.060.9

Q2 Q3 Q4 Q1
52.8 53.2 50.8 52.7
13.3 14.1 11.5 12.5
66.0 67.3 62.3 65.2

Q2 Q3
53.5 55.4
13.6 12.3
67.1 67.7

Q3 to Q3 Q3 to Q2
+4.2%
+3.6%
-13.0%-10.0%+0.6%+0.8%

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

Q1
0.98
1.06
0.99

Q2 Q3 Q4 Q1
0.91 0.98 1.00 0.96
1.12 1.08 0.96 1.05
0.94 1.00 0.99 0.97

Q2 Q3
1.03 1.06
1.00 0.97
1.02 1.04

Q3 to Q3 Q3 to Q2
+7.4%
+2.7%
-10.3%
-2.7%
+3.7%
+1.7%

SalesIndustry segment
Automotive segment
Total LEM

Q152.1
9.4
61.5

Q2 Q3 Q4 Q1
58.2 54.2 50.7 54.9
11.8 13.0 12.0 12.0
70.0 67.2 62.7 66.9

Q2 Q3
52.1 52.5
13.6 12.6
65.7 65.1

Q3 to Q3 Q3 to Q2
-3.0%
+0.9%
-3.0%
-7.5%
-3.0%
-0.9%

EBIT
Industry segment
Automotive segment
Total LEM

Q1 Q2 Q3 Q4 Q1 Q2 Q3
9.2 12.1 12.5 9.3 10.6 10.4 11.4
1.4 2.3 3.3 3.0 2.8 3.7 2.7
10.5 14.4 15.8 12.3 13.4 14.1 14.1

Q3 to Q3 Q3 to Q2-8.5% +10.0%-16.5%-26.6%-10.2%+0.3%

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 December
In CHF thousands

2016/172015/16

Sales
Cost of goods sold
Gross margin

197 753(104 833)
92 920

198 723(106 904)
91 819

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT(20 358)(19 213)(11 846)(0)147
41 650(20 018)(20 500)(10 877)(8)20640 623(147)
52(674)(321)
93(590)

Profit before taxes
Income taxes

40 881(8 205)39 805(8 324)

Net profit of the period

32 67631 481

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