PRESS RELEASE
Q1 results for the financial year 2017/18 (1 April to 30 June 2017)
LEM reports increased sales and profit
Fribourg, 3 August 2017 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces Q1 of 2017/18 results (compared with Q1 of 2016/17):• Bookings increased by 20.8% from CHF 65.2 million to CHF 78.8 million,
with the book-to-bill ratio increasing to 1.04 (0.97)• Sales reached CHF 75.9 million, an increase of 13.4% (CHF 66.9 million);
at constant exchange rates, sales increased by 15.1%• EBIT improved by CHF 2.6 million from CHF 13.4 million toCHF 16.0 million; the EBIT margin was at 21.0% (20.0%)• Net profit for the period rose by 23.0% to CHF 13.3 million(CHF 10.8 million)“At the end of the last financial year, we witnessed improving market conditions thatcontinued throughout the first quarter of 2017/18. Business in China recovered wellafter a slow year 2016, while other major Asian and European regions developed
positively. The seasonal sales peak in the renewable energies business contributed
to the strong quarterly result. We maintained our good delivery performance thanks
to quick production volume increases. We kept our operating margins at a high level,
while at the same time investing in future growth. We plan to further adapt ourinternational footprint with the transfer of existing and new lines to Beijing and Sofia
and at the same time we build up additional R&D resources throughout theorganization”, said François Gabella, CEO of LEM.
Industry segment: robust sales growth
Compared to Q1 of 2016/17, sales in the Industry segment increased by 14.0% to
CHF 62.6 million in Q1 of 2017/18; at constant exchange rates the sales increase
was 15.9%. Sales in China jumped by 37% helped by strong demand from theChinese automation industry and high feed-in tariffs for Chinese solar power
producers. Yet, this incentive was reduced on 1 July 2017 by 15%. Sales in the restof Asia and Europe were up by 4% and 5% respectively. Sales in North America
slowed by 3%. Asia was the most important region, accounting for 52% of Industrysales (China alone accounted for 37%), followed by Europe with 36% and North
America with 10% of Industry sales.
Sales in the drive & welding business were up by 8% helped by the positive
economic sentiment in most regions. Solar energy was the main driver of the 30%
sales growth in the renewable energies & power supply business. Individual shortterm projects supported LEM’s traction business, which grew by 9%. Sales in thehigh-precision business dropped by 4% since last year’s HVDC projects did not
repeat in 2017/18.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

The EBIT margin of the Industry segment improved to 21.3% compared with 19.4%
in Q1 of 2016/17.
Automotive segment: China setting the pace in green cars
In Q1 of 2017/18, sales in the Automotive segment totaled CHF 13.3 million,
representing an increase of 10.9% on Q1 of 2016/17. At constant exchange rates,
sales grew by 11.5%. Sales growth reached 30% in China and 24% in the rest ofAsia. Sales in Europe and North America decreased by 13% and 2% respectively.
The green cars business continued on its growth path with strongest growth in China
and other Asian markets. The high number of new hybrid-electric or electric car
projects being launched points to a strong commitment to green cars from automakers around the world. LEM’s green cars business grew by 44%. As expected, theconventional cars business slowed in all regions; sales decreased by 6%.
The EBIT of the Automotive segment reached CHF 2.7 million, down 3.8% on Q1 of
2016/17. The EBIT margin was 20.0%, compared with 23.0% one year ago.
Financial calendar
The financial year runs from 1 April to 31 March

9 November 2017
8 February 201823 May 2018
28 June 2018
3 July 2018
5 July 2018

Half-year results 2017/18
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 1’480 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 39
www.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
14.878.8

Q1 to Q1+21.4%+18.3%+20.8%

Q1 to Q4
+10.0%+13.7%+10.7%

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

Q1
1.02
1.11
1.04

Q1 to Q1
+6.5%+6.6%+6.4%

Q1 to Q4
-3.8%
+2.7%
-2.7%

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

Q162.613.375.9

Q1 to Q1
+14.0%+10.9%+13.4%

Q1 to Q4
+14.4%+10.7%+13.7%

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

Q4
11.5
2.6
14.1

Q1
13.3
2.7
16.0

Q1 to Q1
+25.2%-3.8%+19.2%

Q1 to Q4
+15.6%+2.6%+13.2%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 June
2017/18

2016/1775 905(40 983)
34 92266 907(36 317)30 590

46.0%

45.7%

(7 643)(6 696)(4 696)089
15 977(6 825)(6 353)(4 050)(0)38
13 401

EBIT margin (in %)

21.0%

20.0%

Financial expense
Financial income
Foreign exchange effect

(28)
13670

(10)
1214

Profit before taxes
Income taxes

16 632(3 382)13 418(2 648)+24.0%Net profit

13 251

10 770+23.0%

17.5%

16.1%

In CHF thousands

Sales
Cost of goods sold
Gross margin
Gross margin (in %)Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT

Net profit margin (in %)LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Variation+13.4%+14.2%+19.2%

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