PRESS RELEASE
Q3 results from October to December for the financial year 2014/15
LEM maintains high operating margins
Fribourg, 17 February 2015 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces sales of CHF 64.7 million, an EBIT of CHF 14.3 million and net profitof CHF 11.7 million for Q3 of 2014/15 (1 October to 31 December 2014). For the
first nine months of 2014/15 sales reached CHF 196.2 million, EBIT wasCHF 43.9 million and net profit was CHF 33.1 million.
Q3 of 2014/15 compared with Q2 of 2014/15:
 Bookings reached CHF 63.8 million, an increase of 3.0%
(CHF 61.9 million)
 Sales decreased by 2.6% to CHF 64.7 million (CHF 66.5 million)
 The book-to-bill ratio increased to 0.99 (0.93)
 EBIT decreased by 11.0% to CHF 14.3 million (CHF 16.0 million); theEBIT margin was at 22.1% (24.1%)
 Net profit for the period increased by 8.2% to CHF 11.7 million(CHF 10.8 million)
In the first nine months of 2014/15, sales increased by 6.3 % compared with the firstnine months of 2013/14. At constant exchange rates sales increased by 8.4%.
“Compared with Q3 of 2013/14 we achieved sales growth of 12.3%. Thus our
seasonal sales decrease in Q3 of 2014/15 due to fewer working days in December
was less pronounced than expected. This favorable trend is the result of good growthin China. In addition we recorded continued growth in traction and the renewableenergy businesses in Asia and good success with recently launched products. This
positive performance translated into a high EBIT margin of 22.1%”, said François
Gabella, CEO of LEM.
Industry segment: strong traction business
Sales in the Industry segment reached CHF 56.0 million in Q3 of 2014/15. The
decrease of 1.9% compared with Q2 of 2014/15 was predominantly attributable toseasonal factors in Europe and North America as well as to the challenging
economic environment in Europe. Sales slowed in Europe by 8% and remained
stable in North America (-0.2%). Sales in Asia grew by 3%. Accordingly, Asia
remained the most important region with a share of 46% of sales. For the first ninemonths of 2014/15 sales increased by 7.1% to CHF 169.5 million; at constantexchange rates sales increased by 9.1%. The Q3 EBIT margin remained high at
23.5% (25.3%). EBIT decreased from CHF 14.4 million for Q2 of 2014/15 by 8.7% toCHF 13.2 million for Q3 of 2014/15.
Compared with Q2 of 2014/15 sales in the drives & welding businessdecreased by 7% in Q3 of 2014/15, driven by weak demand across all

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

regions. Seasonal factors as well as fragile European economies negatively
impacted the sales development.
The renewables & power supplies business remained strong in Q3 of 2014/15
and resisted the traditional slow down during the winter months. Overall sales
declined by 1%. LEM noticed robust activities in China and India while
activities in North America continued to be weak.
Sales in the traction business increased by 10% thanks to increased
investment in infrastructure. LEM’s growth was supported by new projects in
Korea and India. Also activity with high speed trains in China and light railapplications across many regions remained on a high level.
Sales in the high-precision business declined by 4%. Test and measurement
markets were hurt by low investments while medical applications were stable.

Automotive segment: growth in green cars applications
Sales in the Automotive segment decreased from CHF 9.4 million in Q2 of 2014/15
by 6.7% to CHF 8.8 million in Q3 of 2014/15. For the first nine month of 2014/15
sales increased by 2.1% to CHF 26.7 million; at constant exchange rates sales
increased by 3.8%. LEM recorded a strong performance in Asia (+11%) while Europe(-24%) and North America (-11%) slowed. In Q3 of 2014/15, EBIT reached
CHF 1.1 million, a decrease of CHF 0.5 million compared with Q2 of 2014/15.


In the conventional cars business, sales decreased by 10% compared withQ2 of 2014/15. The decrease is attributable to international car makers
reducing production and inventories before year-end.
Recovery in the green cars business continued in Q3 of 2014/15 with a 10%
sales increase. LEM’s sales growth is driven by several small project wins inthe Chinese and Korean market for hybrid cars.

Julius Renk, Chief Financial Officer of LEM, to leave LEM
After 6 successful years as CFO at LEM, Julius Renk has decided to leave theCompany. He will continue to assume full responsibility for LEM’s financial year
2014/15 closing and will support the Company in the transition of the CFO
responsibilities. LEM has initiated the search process for a successor.
“The Board of Directors and the Executive Management respect his decision andthank Julius Renk for his excellent and essential contribution increasing LEM’sperformance and enhancing LEM’s financial organization. I very much regret thatJulius Renk is leaving us. I wish him great success in his new endeavors”, said
François Gabella, CEO of LEM.
Outlook: confirmed outlook for full year 2014/15
In the past years, LEM continued a strategy to diversify its international production
capacity. With its major production sites in low cost countries (China and Bulgaria)
and its resulting high natural hedge, management believes that LEM is well prepared
for the new exchange rate levels. Still, given LEM’s Swiss franc cost base in SG&Aand R&D, the recent sharp appreciation of the Swiss franc against major currencies
will adversely impact the Company both in terms of sales and operating margins.
This will raise the task for LEM to accelerate the ongoing transfer of activities toLEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

defend the Company’s competitive position in its global markets. Board andmanagement are analyzing the situation to review and amend current operationalplans.
As a rough indication and at current exchange rates, LEM expects a negative
currency impact on EBIT of CHF 3 million in Q4 of 2014/15. In its financial result,
LEM will benefit from its established foreign exchange hedging policy (100% hedgeof net exposure of USD and EUR 12 months forward). LEM expects to record arevaluation gain on its foreign exchange hedging portfolio in Q4 of 2014/15, which
will more than offset the revaluation of assets and liabilities.
For the full financial year 2014/15 management maintains its sales forecast for arange of CHF 250 to CHF 260 million, compared with CHF 245.6 million in thefinancial year 2013/14. The EBIT for the full year 2014/15 is expected to be around
CHF 54 million, despite the expected currency impact in Q4 of 2014/15.

Media, investors and analyst conference call and webcast
François Gabella, CEO, and Julius Renk, CFO, will provide a detailed presentation ofthe Q3 of 2014/15 results today at 10:00 CET at a media, investors and analyst
conference call. Dial in details are:+41 (0)58 310 50 00
Switzerland & Europe+44 (0)203 059 58 62 UK+1 (1)631 570 56 13USAThe audio conference call will simultaneously be webcast. Please follow theinstructions in the following link: http://services.choruscall.eu/links/lem150217.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.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

Financial calendar
The financial year runs from 1 April to 31 March

4 June 2015
25 June 2015
30 June 2015
2 July 2015

Year-end results 2014/15Ordinary Shareholders’ Meeting for the year 2014/15
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 1’272 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 SAAvenue 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

2013/14
Q1

Industry segment
Automotive segment
Total LEM

56.6 49.9 50.1 55.1 56.2 52.1 55.0
8.5 9.3 8.5 8.3 8.5 9.8 8.8
65.1 59.3 58.7 63.5 64.7 61.9 63.8

Book-to-bill ratio

Q1

Industry segment
Automotive segment
Total LEM

1.06 0.89 1.03 1.05 1.00 0.91 0.98
1.02 1.06 0.94 0.99 0.99 1.04 1.00
1.05 0.91 1.02 1.04 1.00 0.93 0.99

Sales

Q1

Industry segment
Automotive segment
Total LEM

53.5 56.3 48.5 52.7 56.5 57.1 56.0
8.3 8.8 9.1 8.4 8.6 9.4 8.8
61.8 65.1 57.6 61.1 65.0 66.5 64.7

EBIT

Q1

Industry segment
Automotive segment
Total LEM

12.3 15.4 10.6 12.5 12.6 14.4 13.2
1.0 1.5 1.3 1.1 1.0 1.6 1.1
13.3 17.0 11.9 13.6 13.5 16.0 14.3

Q2

Q2

Q2

Q3

Q3

Q3

Q3

Q4

Q4Q4Q4

Q1

Q1

Q1

Q1

Q2

Change Change

Orders received

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Q2

2014/15

Q2Q2Q2Q3Q3Q3Q3Q3 to
Q3 to
Q3Q2+9.7% +5.4%+2.8% -10.0%+8.7% +3.0%
Q3 to
Q3-4.9%+6.4%-2.9%

Q3 to
Q2+7.7%-3.8%+6.5%

Q3 to
Q3+15.3%-3.4%+12.3%

Q3 to
Q2-1.9%-6.7%-2.6%

Q3 to
Q3 to
Q3
Q2+23.9% -8.7%-13.0% -31.7%+20.0% -11.0%

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

Consolidated income statement

April to December
2014/15
2013/14In CHF thousands
Sales
Cost of goods sold
Gross margin

196 210(105 367)
90 843

184 497(98 739)85 758

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT(18 465)(17 789)(11 076)(1)368
43 881(17 520)(15 300)(10 928)(57)
175
42 128Financial expense
Financial income
Foreign exchange effect

(167)
148
(3 203)(102)
61(1 602)

Profit before taxes

40 66040 484

Income taxes(7 515)(7 342)

Net profit of the period

33 14533 143

LEM Holding SA
Avenue Beauregard 11700 Fribourg
Switzerland

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