PRESS RELEASE
Half year results from April to September for the financial year 2017/18
LEM reports double-digit sales and profit growth – LEM’s Board of Directors
appoints Frank Rehfeld as in-house successor to CEO François Gabella
Fribourg, 9 November 2017 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces first half of 2017/18 results (compared with first half of 2016/17):• Bookings amounted to CHF 156.8 million, an increase of 18.5%(CHF 132.3 million)• Sales increased by 14.8% to CHF 152.2 million (CHF 132.6 million); at
constant exchange rates sales increased by 15.9%• The book-to-bill ratio improved to 1.03 (1.00)• EBIT increased by 15.9% to CHF 31.9 million (CHF 27.5 million); the EBIT
margin increased to 20.9% (20.7%)• Net profit for the period rose by 19.7% to CHF 26.5 million(CHF 22.1 million)• Free cash flow was down to CHF 6.5 million (CHF 18.5 million) due toincreases of accounts receivables (+22%) and investments inproduction equipment (+84%) linked to the accelerated sales growth• Group headcount increased by 89 FTEs to 1540 FTEs since 31 March
2017, mainly in production and R&D.
Q2 of 2017/18 compared with Q2 of 2016/17:• Bookings amounted to CHF 78.0 million, an increase of 16.3%(CHF 67.1 million)• Sales increased by 16.1% to CHF 76.3 million (CHF 65.7 million)• The book-to-bill remained stable at 1.02 (1.02)• EBIT increased by 12.7% to CHF 15.9 million (CHF 14.1 million); the EBIT
margin decreased to 20.8% (21.5%)• Net profit for the period rose by 16.5% to CHF 13.2 million(CHF 11.3 million)“LEM started the year 2017/18 off strong. All but the conventional cars business
contributed to this positive performance. We saw more industrial activity and wecapitalized on our investment in the green cars business, where we leveraged ourmarket position in the fastest-growing markets: China, Japan and Korea. Our key
challenge in the first half of 2017/18, however, was to increase production capacityand flexibility in order to better meet growing demand. Greater investment ininnovation remained the top priority. We increased our R&D team by nearly 20% inGeneva, Lyon, Beijing and Sofia. We have a pipeline of exciting product innovations
and will launch several new promising products in the second half of the year”, said
François Gabella, CEO of LEM.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

Industry segment: growth momentum across all businesses
First-half sales in the Industry segment totaled CHF 123.7 million, up 15.6% on thesame period a year earlier. At constant exchange rates, sales increased by 16.6%.
The positive economic environment provided a tailwind for all Industry businesses.
Sales grew by 28% in China, by 13% in Asia excluding China and by 12% in Europe.
Sales performance in North America was mixed (-2%) due to strong drives business
but waning renewables business in the US.
First-half EBIT increased, from CHF 21.0 million in 2016/17 to CHF 25.9 million in
2017/18.
----

Sales in the drives & welding business grew by 9% compared with the firsthalf of 2016/17. LEM achieved higher sales in all regions, while gaining somemarket share. Sales growth in China was strongest. Here LEM identified highdemand in automation industries; this also helped the Japanese automationindustry.
Sales in the renewable energies & power supplies business increased by
25% on the first six months of 2016/17. Growth was driven by continuing
demand from solar energy in China and Europe. Overall, LEM won marketshare.
Some short-term projects supported LEM’s traction business, which grew by23%. The Company achieved strong sales with energy metering, trackside
applications and retrofit orders in Europe and India as well as light rail andsubway projects in China. The market share remained stable.
Sales in the project-driven high-precision business were up by 3%. Activity in
China slowed, with no repeat of last year’s HVDC projects. The test &measurement market picked up, mainly driven by higher demand in theautomotive industry. LEM’s market share remained stable.

Automotive segment: green cars business exceeds conventional cars businessIn the first half of 2017/18, sales in the Automotive segment totaled CHF 28.5 million,representing an increase of 11.3%. At constant exchange rates, sales increased by13.2%. Sales growth was driven by the green cars business in China, Japan andKorea. Sales in the green cars business exceeded sales in the conventional cars
business for the first time in Q2 2017/18. Competition is intensifying as higher market
volumes attract new players from all corners of the car industry. LEM increased its
marketing and sales capacities worldwide and participated in three trade fairs inorder to develop the Group’s market presence in the global car industry.
The EBIT in the Automotive segment reached CHF 5.9 million, down 8.5% on the
exceptionally high EBIT in the first half of 2016/17.
-Sales in the green cars business climbed by 63% on the previous year. The
Asian electric vehicle market is growing fast. New market entrants are driving
the development, but LEM also sees a strong commitment to developing newelectric or hybrid-electric vehicle platforms from large car manufacturers
around the globe.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

-In the conventional cars business, sales decreased as expected by 18%. LEM
experienced a weaker US market due to low US vehicle sales and theongoing technological shift.

LEM announces CEO succession plan
After eight successful years at the helm of the Company, François Gabella has
decided to retire from the operational role at LEM. Consistent with its long-termplanning, LEM’s Board of Directors has appointed Frank Rehfeld, Senior Vice
President Industry, as CEO of LEM Holding SA. Frank Rehfeld will take over fromFrançois Gabella at the start of the financial year 2018/19 (1 April 2018). His broad
experience as well as his personality and the seamless transition will assure thecontinuation of LEM’s strong executive leadership and the strategy of profitable
growth. The Board of Directors has initiated a search for the successor to lead LEM’sIndustry segment.
Frank Rehfeld (49) joined LEM on 1 January 2016 to head the Company’s Industry
segment. In this position, he has been advancing technology leadership, driving
growth and addressing new market segments. Starting his career in R&D and sales
in Body Electronics at Siemens VDO Germany, he subsequently held multiple
leadership positions in China at Siemens VDO, Hella as well as Brose. Frank Rehfeld
holds a Master degree in Electrical Engineering from University of ErlangenNürnberg and is a German national.
“Since 2010, François Gabella has been successfully leading the Company andachieved a phase of profitable growth and shareholder value creation”, said Andreas
Hürlimann, Chairman of LEM’s Board of Directors. “This accomplishment was driven
by Mr. Gabella’s focused internationalization of the Group, the implementation of astrong organization and his priority on innovation. The Board of Directors gratefullyemphasizes his outstanding achievements throughout the years of his mandate”,
concludes Andreas Hürlimann.
LEM’s Board of Directors will propose Mr. Gabella to be elected new Board member
at the next Annual General Meeting on 28 June 2018 to benefit from his know-how
and industry insights.
OutlookManagement sees LEM’s Industry businesses supported by the positive global
economic environment. The green cars business is set to remain strong, but volatiledevelopment is to be expected as this business is mainly relying on government
policies.
Seasonality will affect sales in LEM’s third financial quarter in Europe (Christmasseason) and in the fourth financial quarter in China (Chinese New Year). For the fullfinancial year 2017/18, LEM forecasts sales of around CHF 290 million comparedwith CHF 264.5 million for full-year 2016/17. LEM expects the EBIT margin to remain
above 20%.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

Media, investors and analyst conference call and webcast
Andreas Hürlimann, Chairman of the Board of Directors, François Gabella, CEO, andAndrea Borla, CFO, will provide a detailed presentation of the half 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+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/lem171109.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.
Detailed information on the half year 2017/18 results and half-year report
The complete half-year report 2017/18 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

8 February 201823 May 2018
28 June 2018
3 July 2018
5 July 2018

Third quarter results 2017/18
Year-end results 2017/18
Annual General Meeting of Shareholders for the year
2017/18
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 1’540 employees worldwide. It has production
plants in Beijing (China), Geneva (Switzerland), Sofia (Bulgaria) and Tokyo (Japan),and a dedicated R&D Center in Lyon (France). With regional sales offices near its
customers’ locations, the Company is able to offer a seamless service around theglobe. 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 39www.lem.com

Appendix:
Key figures
In CHF millions

2016/172017/18

ChangeOrders received
Industry segment
Automotive segment
Total LEM

Q1
52.7
12.5
65.2

Q2
53.5
13.6
67.1

Q3
55.4
12.3
67.7

Q4
58.1
13.0
71.2

Q1
63.9
14.8
78.8

Q2
58.7
19.4
78.0

Q2 to Q2
+9.6%
+42.2%+16.3%

Q2 to Q1
-8.2%
+30.7%-0.9%

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

Q1
0.96
1.05
0.97

Q2
1.03
1.00
1.02

Q3
1.06
0.97
1.04

Q4
1.06
1.09
1.07

Q11.02
1.111.04

Q20.96
1.27
1.02

Q2 to Q2-6.5%+27.4%+0.1%

Q2 to Q1
-5.9%
+14.2%-1.4%

Sales
Industry segment
Automotive segment
Total LEM

Q1
54.9
12.0
66.9

Q2
52.1
13.6
65.7

Q3
52.5
12.6
65.1

Q4
54.8
12.0
66.8

Q1
62.6
13.3
75.9

Q2
61.1
15.2
76.3

Q2 to Q2
+17.3%+11.6%+16.1%

Q2 to Q1
-2.4%
+14.4%+0.5%

EBIT
Industry segment
Automotive segment
Total LEM

Q1
10.6
2.8
13.4

Q2
10.4
3.7
14.1

Q3
11.4
2.7
14.1

Q411.52.6
14.1

Q1
13.3
2.7
16.0

Q2
12.6
3.3
15.9

Q2 to Q2
+21.6%-12.1%+12.7%

Q2 to Q1
-5.4%
+23.8%-0.5%

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
In CHF thousands

2017/18

2016/17

ChangeSales
Cost of goods sold
Gross profit

152 197(82 781)
69 417

132 620(71 257)
61 363+14.8%

45.6%

46.3%

(15 040)(12 511)(10 130)0135
31 870(13 579)(12 496)(7 886)(0)102
27 503

EBIT margin (in %)

20.9%

20.7%

Financial expense
Financial income
Foreign exchange effect

(118)
45
1 514

(76)
33(20)

Profit before taxes
Income taxes

33 312(6 840)27 441(5 319)+21.4%Net profit

26 47222 122+19.7%

17.4%

16.7%

Gross profit (in % of sales)

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT

Net profit margin (in % of sales)

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland+13.1%+15.9%

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