PRESS RELEASE
Q4 and year-end results for the financial year 2014/15
LEM delivers sales growth and high margins in financial year 2014/15 despite
adverse currency impact – stable dividend proposed
Fribourg, 4 June 2015 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces Q4 of 2014/15 sales of CHF 61.5 million, an EBIT of CHF 10.3 million
and net profit of CHF 10.0 million (1 January to 31 March 2015). The
appreciation of the Swiss franc versus the euro negatively affected the resultsin Q4 of 2014/15. For the financial year 2014/15, sales reachedCHF 257.8 million, EBIT was CHF 54.2 million and net profit wasCHF 43.1 million.
Q4 of 2014/15 compared with Q3 of 2014/15:• Bookings amounted to CHF 60.6 million, a decrease of 4.9%
(CHF 63.8 million)• Sales decreased by 5.0% to CHF 61.5 million (CHF 64.7 million)• The book-to-bill ratio remained stable at 0.99 (0.99)• EBIT decreased by 28.0% to CHF 10.3 million (CHF 14.3 million); theEBIT margin was at 16.8% (22.1%)• CHF 2 million negative impact on EBIT due to the Swiss franc’s sudden
appreciation against the euro since mid-January 2015
• Net profit for the period decreased by 14.3% to CHF 10.0 million(CHF 11.7 million)
On an annual basis:• Bookings increased by 1.9% from CHF 246.4 million to CHF 251.0 million• Sales reached CHF 257.8 million, an increase of 4.9% (CHF 245.6million); at constant exchange rates, sales increased by 6.7%
• The book-to-bill ratio decreased to 0.97, from 1.00 a year ago• Gross margin was at 45.9% (47.0%)• EBIT decreased by 2.7% from CHF 55.7 million to CHF 54.2 million; theEBIT margin was at 21.0% (22.7%)• Net profit for the year reached CHF 43.1 million, a decrease of 5.5%
compared to the previous year
“The financial year 2014/15 was another intense, good year for LEM. We continued
along our growth trajectory delivering robust sales growth and strong margins. We
have strengthened our market position in Industry markets by growing faster than ouraddressable market and faster than competition. Again, we launched a high numberof new products. Our strategy to diversify our production footprint and thus reducing
the exposure to the Swiss franc limited the financial impact of the Swiss National
Bank’s decision to discontinue the minimum euro exchange rate and the following
sharp appreciation of the Swiss franc”, 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: market share gains
We achieved market share gains across most businesses and continually strong
growth in China. Sales increased by 4.7% to CHF 221.0 million in financial year
2014/15. At constant exchange rates, sales increased by 6.7%. Sales in China wereup 18%. In light of this increase, China has expanded its position as the mostimportant single country for LEM and now accounts for 26% of Industry sales. Sales
performance in Asia excluding China was also strong and increased by 8% whilesales in Europe remained stable and sales in North America decreased by 8%.
Europe and Asia were the most important regions, accounting for 43% and 44%
respectively of Industry sales. 11% of Industry sales were delivered to North America
in the financial year 2014/15. The EBIT margin came in at 22.6%, a strong result
despite the negative impact following the Swiss franc’s sharp appreciation against
the euro. The prior year’s EBIT margin was a record 24.1%.
−−−−

Sales in the drives and welding business increased by 1% over the previousyear. Demand across all regions was stable. Sales development was best in
China and Japan while Europe and North America were rather slow. The
positive sales performance in Japan was driven by export-led growth due tothe weakening Japanese yen.
The renewable energies & power supplies business benefitted fromincreasing investments in renewable energies in China and India. Renewableenergy markets continue to shift to China and Japan with local players
becoming increasingly important. North American markets remained weak.
Offshore wind projects in Europe provided support. Total sales increased by1%.
Sales in the traction business increased by 26% thanks to the recovery ofinfrastructure investments. Sales performance was strong in China, Koreaand India, not only for local markets but for export markets, as well. Whileinterest in high-speed train products was strong in China, international
interest was directed toward light rail.
Activity in the high-precision business remained sluggish. Medicalapplications were stable while the market for test & measurement wascharacterized by low investments and strong competition. Total sales
decreased by 13%.

Automotive segment: continued growth in green cars
Sales in the Automotive segment reached CHF 36.7 million in the financial year
2014/15, representing an increase of 6.2% compared with the financial year 2013/14.
At constant exchange rates, sales grew by 6.4%. This growth is the result of robust
battery management sales and continued recovery in the green cars business. Salesof green cars applications peaked in Q4 of 2014/15, especially in China. Segment
sales in North America (-1%) and Europe (-3%) were relatively stable while sales in
Asia grew by 16%. China represented the fastest growing single country in theAutomotive segment, as well, with sales up 32%. China represented 25% of segment
sales in the financial year 2014/15 while the rest of Asia accounted for 17%. North
America remained the most important region with 49% of segment sales and Europe
was the smallest region at 8%. EBIT reached CHF 4.3 million, down 10.8% from theLEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

financial year 2013/14. The EBIT margin was 11.8%, compared with 14.0% in theprevious year.
−−

Year-on-year sales in the conventional cars business grew by 4%. LEM
added new customers and new platforms with existing customers. In
response to emerging market trends, a new start/stop application for nichemarkets was developed. LEM also posted good results in connection withnew battery pack monitoring products, which were launched very recently.
The green cars business benefitted from strong recovery among hybrid
electric vehicles. China has recently rolled out a set of measures to promote
the use of green cars triggering a sharp growth at the end of 2014 as a result.
Thus, the strongest growth was in China and LEM landed several newprojects with Chinese car manufacturers. Korean sales increased, too. Sales
grew 15% compared with the financial year 2013/14.

Andrea Borla new CFO
Andrea Borla (48) will join LEM as of 1 December 2015 and will succeed Julius Renk
who will leave the Company end of August 2015. LEM will communicate the interim
responsibilities in due time.
Andrea Borla is currently CFO at Schindler France. Previously he has held a regional
general manager role at Schindler China and worked as head of group consolidation
at SAirGroup. Andrea Borla holds a PhD and a Master’s degree in Finance andAccounting from University of St. Gallen. He is a Swiss national.
Changes in the Board of Directors
Peter Rutishauser, member of the Board of Directors since 2003, has announced hisresignation on the date of the ordinary General Meeting on 25 June 2015. During histenure, Mr. Rutishauser played a pivotal role as Vice-Chairman in transformational
projects, which helped shape LEM and delivered prosperous outcomes forshareholders, employees and customers. Board and Management thank Mr.
Rutishauser for his highly valuable work and wish him all the best for the future.
The Board of Directors proposes to elect Ulrich J. Looser (M. Sc. Physics, ETHZürich; M.A. HSG, St. Gallen). Mr. Looser is entrepreneur and partner with BLR &Partners, focusing on developing industrial companies by active personal ownership.
Based on his current work as a chairman and board member of Swiss-based publicly
listed and privately held companies he will contribute to the company a breadth offunctional experience and deep insights into various customer segments.
Dividend proposal to the ordinary General Meeting of the Shareholders
The dividend proposal of CHF 40 (stable versus the prior year) to be submitted by
the Board of Directors to the forthcoming ordinary General Meeting is a sign of trustin the Company. 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 105.7%.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

Outlook
Due to economic factors and the expected performance of LEM in its markets,management expects growth of volumes (in number of transducers) in bothsegments. Current price pressure, however, as well as foreign exchange effects may
adversely affect the Company, leading to uncertainty regarding sales growth.
Management expects the operating margin to be within LEM’s target range of 15% to20%.
Media and analyst conference and webcast
Andreas Hürlimann, Chairman of the Board of Directors, François Gabella, CEO, andJulius Renk, CFO, will provide a detailed presentation of Q4 and financial year
2014/15 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 2014/15 results and annual report
The full financial report is available from today, 4 June 2015, 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

25 June 2015
30 June 2015
2 July 2015
11 August 2015
11 November 201516 February 2016
9 June 2016
30 June 2016
5 July 2016
7 July 2016

Ordinary General Meeting of the Shareholders for the year
2014/15
Dividend ex-date
Dividend payment date
First quarter results 2015/16
Half-year results 2015/16
Third quarter results 2015/16
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 1’300 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 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

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

Q350.1
8.5
58.7

Q455.1
8.3
63.5

Q156.28.5
64.7

Q252.19.8
61.9

Q355.08.8
63.8

Q451.09.6
60.6

Q4 to Q4 Q4 to Q3
-7.5%
-7.2%
+15.4%
+9.3%
-4.5%
-4.9%

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

Q1
1.06
1.02
1.05

Q2
0.89
1.06
0.91

Q3
1.03
0.94
1.02

Q4
1.05
0.99
1.04

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

Q4 to Q4 Q4 to Q3-5.7%+1.0%-3.0%
-4.0%
-4.8%
±0.0%

Sales
Industry segment
Automotive segment
Total LEM

Q1
53.5
8.3
61.8

Q2
56.3
8.8
65.1

Q3
48.5
9.1
57.6

Q452.7
8.4
61.1

Q1
56.5
8.6
65.0

Q2
57.1
9.4
66.5

Q3
56.0
8.8
64.7

Q4
51.5
10.0
61.5

Q4 to Q4 Q4 to Q3
-2.3%
-7.9%
+19.0% +14.2%
+0.7%
-4.9%

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

Q112.61.0
13.5

Q2
14.4
1.6
16.0

Q3
13.2
1.1
14.3

Q4
9.7
0.6
10.3

Q4 to Q4 Q4 to Q3-22.6%-26.4%-41.0%-43.3%-24.1%-27.7%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
2014/15 2013/14
In CHF thousands
Sales
Cost of goods sold
Gross margin

257 757 245 638(139 366) (130 267)
118 392 115 371

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT(25 156)(24 075)(15 337)(1)
386
54 209(24 526)(20 881)(14 441)(64)
270
55 728Financial expense
Financial income
Foreign exchange effect

(251)
199
(2 622)(121)
133(1 390)

Profit before taxes

51 53554 350

Income taxes(8 404)(8 709)Net profit of the period

43 13145 641

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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