PRESS RELEASE
Half year results from April to September for the financial year 2016/17
LEM reports stable sales and robust margins
Fribourg, 10 November 2016 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces first half of 2016/17 results (compared with first half of 2015/16):• Bookings amounted to CHF 132.3 million, an increase of 4.3%
(CHF 126.9 million)• Sales increased by 0.8% to CHF 132.6 million (CHF 131.6 million); at
constant exchange rates sales decreased by 0.8%
• The book-to-bill ratio improved to 1.00 (0.96)• EBIT increased by 10.6% to CHF 27.5 million (CHF 24.9 million); the EBIT
margin increased to 20.7% (18.9%)• Net profit for the period rose by 11.6% to CHF 22.1 million(CHF 19.8 million)• Free cash flow was improved from CHF -1.4 million to CHF 18.5 million
Q2 of 2016/17 compared with Q2 of 2015/16:• Bookings amounted to CHF 67.1 million, an increase of 1.6%
(CHF 66.0 million)• Sales decreased by 6.2% to CHF 65.7 million (CHF 70.0 million)• The book-to-bill ratio improved to 1.02 (0.94)• EBIT decreased by 2.0% to CHF 14.1 million (CHF 14.4 million); the EBIT
margin increased to 21.5% (20.5%)• Net profit for the period rose by 3.8% to CHF 11.3 million(CHF 10.9 million)“The trends in our individual businesses were mixed during the past six months:
Sales growth in the drives & welding and the green cars businesses contrasted witha sluggish traction market and investments in renewable energies that failed to meetexpectations. Sales in Europe and China slowed, while we recorded progress inNorth America and the rest of Asia. In total, we report stable sales and robust
margins for the first half of 2016/17. We maintained our product innovation pace andlaunched five new products. Looking ahead, we plan to increase significantly ourR&D investments in order to capture additional growth opportunities”, said François
Gabella, CEO of LEM.
Industry segment: solid drives & welding businessFirst-half sales in the Industry segment totaled CHF 107.0 million, down 3.0% on thesame period a year earlier. At constant exchange rates, sales decreased by 4.5%.
Sales in China slowed (-7%), while sales in the rest of Asia continued on a steadypath (+4%). North America benefitted from a positive economic trend (+5%) whereas
sales in Europe suffered from a weak renewable energies market (–5%). LEM

LEM Holding SA
Avenue Beauregard 1
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Switzerland

Tel. : +41 26 460 10 30
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continued to boost production capacities for recently launched products, which once
again proved highly successful.
First-half EBIT decreased slightly, from CHF 21.2 million in 2015/16 toCHF 21.0 million in 2016/17.
----

Sales in the drives & welding business grew by 11% compared with the firsthalf of 2015/16. The improved economic environment in the US and Germany
and the stable situation in China were the drivers of sales growth. LEM
achieved higher sales in all regions, while gaining market share.
Sales in the renewable energies & power supplies business, where the usual
seasonality effect was less pronounced than in previous years, decreased by
15% on the first six months of 2015/16. The increasing relocation of theproduction capacities of LEM’s customers from Europe to China, withconcurrent consolidation of the Chinese market, was observed. Sales in
China were stable but fell in Europe.
The traction business slowed by 13% due to less activity in a temporarily
weakening Chinese market. LEM achieved strong sales in Germany and India
with energy metering, trackside applications and retrofit orders. The market
share remained stable.
Sales in the project-driven high-precision business were down by 5%. Activityin China slowed after HVDC projects were completed; however, LEM
recorded an upturn in the US medical market. The Company’s market shareremained stable.

Automotive segment: strong green cars business
LEM achieved profitable growth in all regions. Sales in the Automotive segment
reached CHF 25.6 million, up 20.4% on the same period of 2015/16. At constantexchange rates, sales increased by 18.2%. Strong growth was achieved while
product quality and reliability at a high level was maintained. LEM won a customer
award for its overall performance.
LEM improved the EBIT margin thanks to additional volumes, favorable product mix
and successes in the Chinese green cars business. Half-year EBIT increased toCHF 6.5 million compared with CHF 3.7 million in the first half of 2015/16.
-In the conventional cars business, sales decreased by 2%. LEM experienced
a weaker US market.
Sales in the green cars business climbed 102% on the previous year. Better
consumer acceptance and government incentives for green cars resulted inhigher registration figures globally.

OutlookR&D investments will be significantly increased going forward in order to extend
LEM’s leadership position and accelerate growth. The Company will focus on newtechnologies in the areas of ASIC, embedded software and the Internet of Things.
R&D capacities are already being enhanced in Sofia and Beijing. In addition,
following the evaluation of several locations, the Board of Directors has decided toLEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

establish a new R&D center in the Lyon/Grenoble high-tech cluster. Geneva willremain the LEM’s main R&D hub.
For the remainder of the year, LEM forecasts a stable economic situation in mostregions translating in a steady development of LEM’s Industry businesses. TheAutomotive business is expected to keep its momentum going. Seasonality might
influence sales in the third quarter in Europe (Christmas season) and in the fourth
quarter 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 forecasts sales of CHF 260–270
million; this compares with CHF 261.5 million for full-year 2015/16. The EBIT margin
is expected to be around 20%.
Media, investors and analyst conference call and webcast
François Gabella, CEO, and Andrea Borla, CFO, will provide a detailed presentationof 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 inthe following link: services.choruscall.eu/links/lem161110.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 2016/17 results and half-year report
The complete half-year report 2016/17 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

16 February 201723 May 2017*29 June 2017*
4 July 2017*
6 July 2017*

Third quarter results 2016/17
Year-end results 2016/17
Ordinary General Meeting of Shareholders for the financial
year 2016/17
Dividend ex-date
Dividend payment date

* New dates

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +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 1’400 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

Q1
50.9
10.0
60.9

Q2
52.8
13.3
66.0

Q3
53.2
14.1
67.3

Q4
50.8
11.5
62.3

Q1
52.7
12.5
65.2

Q2
53.5
13.6
67.1

Q2 to Q2 Q2 to Q1+1.4%+1.6%
+2.6%
+8.7%
+1.6%
+2.9%

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

Q10.981.06
0.99

Q20.911.120.94

Q30.98
1.08
1.00

Q4
1.00
0.96
0.99

Q10.96
1.05
0.97

Q2
1.03
1.00
1.02

Q2 to Q2 Q2 to Q1+13.3%+7.1%-10.8%
-4.5%
+8.3%
+4.8%

Sales
Industry segment
Automotive segment
Total LEM

Q152.1
9.4
61.5

Q2
58.2
11.8
70.0

Q3
54.2
13.0
67.2

Q4
50.7
12.0
62.7

Q1
54.9
12.0
66.9

Q252.113.6
65.7

Q2 to Q2 Q2 to Q1-10.5%-5.2%+15.1% +13.7%
-6.2%
-1.8%

EBIT
Industry segment
Automotive segment
Total LEM

Q1
9.2
1.4
10.5

Q2
12.1
2.3
14.4

Q3
12.5
3.3
15.8

Q4
9.3
3.0
12.3

Q1
10.6
2.8
13.4

Q2
10.4
3.7
14.1

Q2 to Q2 Q2 to Q1-14.0%-2.6%+62.2% +35.5%
-1.8%
+5.2%

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 September
In CHF thousands

2016/172015/16

Sales
Cost of goods sold
Gross margin

132 620(71 257)
61 363

131 567(71 696)
59 872

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT(13 579)(12 496)(7 886)(0)102
27 503(13 801)(14 085)(7 206)(4)94
24 871(76)
33(20)

(107)
46533

Profit before taxes
Income taxes

27 441(5 319)25 342(5 525)

Net profit of the period

22 12219 818Financial expense
Financial income
Foreign exchange effect

LEM Holding SAAvenue Beauregard 1
1700 Fribourg
Switzerland

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