PRESS RELEASE
Half-year results from April to September for the financial year 2018/19
Sustained growth in green cars sales and strong margins
Fribourg, 6 November 2018 – LEM (SIX: LEHN), the market leader in providing
innovative and high-quality solutions for measuring electrical parameters,announces first half of 2018/19 results (compared with first half of 2017/18):• Bookings increased by 5.9% from CHF 156.8 million toCHF 166.0 million; the book-to-bill ratio decreased to 0.98 (1.03)• Sales increased by 11.0% to CHF 169.0 million (CHF 152.2 million); at
constant exchange rates, sales increased by 8.0%
• EBIT increased by 11.6% from CHF 31.9 million to CHF 35.6 million; theEBIT margin was at 21.0% (20.9%)• Net profit for the period rose by 3.2% to CHF 27.3 million(CHF 26.5 million)
Q2 of 2018/19 compared with Q2 of 2017/18• Bookings amounted to CHF 80.0 million, an increase of 2.6%
(CHF 78.0 million)• Sales increased by 6.1% from CHF 76.3 million to CHF 80.9 million• The book-to-bill ratio decreased from 1.02 to 0.99
• EBIT increased by 7.0% to CHF 17.0 million (CHF 15.9 million); the EBIT
margin increased from 20.8% to 21.0%• Net profit for the period rose by 4.7% to CHF 13.8 million(CHF 13.2 million)“LEM achieved an excellent start to the year 2018/19 with strong, broad-based sales
growth in the first quarter. Sales performance in the second quarter was mixed, withsustained growth in our green cars business but a weakening in Industry businesses.
Nevertheless, we have increased our market share in all Industry businesses andmaintained our strong operating margins throughout the period. Our green cars sales
continued to grow at a fast pace in China but the reduction of subsidies for renewableenergies of the Chinese government starting in June 2018 affected our Industry
sales. Increasing investment in innovation and infrastructure for future growth
remained our top priority. We expanded our team at our new R&D site in Lyon andcontinued to reinforce the Automotive organization to accommodate the current andexpected growth of the business”, said Frank Rehfeld, CEO of LEM.
Industry segment: mixed sales development
First-half sales in the Industry segment totaled CHF 131.6 million, up 6.4% on thesame period a year earlier. At constant exchange rates, sales increased by 3.3%.
After strong sales across all businesses and regions in Q1 of 2018/19, sales growthslowed in Q2 of 2018/19 compared to Q1. LEM's underlying growth drivers
automation, renewable energies and energy efficiency remain strong.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
SwitzerlandTel. : +41 26 460 10 30Fax.: +41 26 460 10 39
www.lem.com

While business was robust in Europe and North America, policy changes in China
affected Industry sales there. Sales decreased by 6.3% in China after increasing by
27.8% one year ago. Sales in Asia excluding China grew by 13.8%, in Europe by
13.6%, and in North America by 11.1%.
First-half EBIT increased, from CHF 25.9 million in 2017/18 to CHF 28.8 million in2018/19.
----

Sales in the drives & welding business grew by 5.4% compared with the firsthalf of 2017/18. LEM achieved higher sales in all regions except China, whereinvestment sentiment is currently subdued. Other key regions in Asia (Japan,Korea), Europe (Germany, UK), and North America (USA) delivered healthy
sales growth across all product categories. LEM won market share.
Sales in the renewable energies & power supplies business were stable(- 0.1%) compared with the first six months of 2017/18. LEM recorded theanticipated decrease following the reduction of government support forrenewable energies in China. At the same time, business performance wasstrong in Europe, where LEM acquired market share, as well as in India.
Increased infrastructure investment in all regions supported LEM’s traction
business, which grew by 16.2%. LEM saw most activity with projects forlocomotives for high-speed trains in Asia and freight traffic in Europe andincreased the market share.
Sales in the high-precision business were up by 27.4%. The test &measurement market continued to grow rapidly, driven by robust demand forgreen cars test benches. LEM capitalized on the introduction of new products
and gained market share.

Automotive segment: green cars business moves ahead
In the first half of 2018/19, sales in the Automotive segment totaled CHF 37.4 million,representing an increase of 31.2%. At constant exchange rates, sales increased by
28.2%. Electrification remains the dominant trend in the global car industry withChina being the largest market. Competition is intensifying as higher market volumes
attract new players from all corners of the electronics and semiconductor industry.
EBIT in the Automotive segment reached CHF 6.7 million, up 13.6% on the first halfof 2017/18. The EBIT margin was impacted by the implementation of LEM'sinvestment program into new products and the development of the Automotiveorganization to keep up with current and expected growth.
-Sales in the green cars business increased strongly by 65.2% compared withthe previous year. Sales growth was driven by China, Japan, and Korea. The
activities of traditional car makers in Europe and the U.S. also accelerated.
In the conventional cars business, the expected decline in LEM's sales
continued, albeit at a slower pace (-6.8%). All regions were equally affected.

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
Although the current trade disputes have not yet had a significant impact on LEM'sbusiness, if they remain unresolved, such new trade barriers or geopolitical tensions
will pose a risk to global growth. The renewable energies business may be
temporarily weaker but is expected to recover in the future. The persistentuncertainty, however, makes forecasting more difficult for the Industry businesses.
LEM's green cars business is set to remain strong.
For the full financial year 2018/19, Management expects sales of aroundCHF 320 million compared with CHF 301.2 million for the full financial year 2017/18.
LEM expects its EBIT margin around 20%.
Media, investors and analyst conference call and webcast
Frank Rehfeld, CEO, and Andrea 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)207 107 0613
+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/lem181106.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 2018/19 results and half-year report
The complete half-year report 2018/19 in accordance with IAS 34 (interim financialreporting) is available www.lem.com > Investors > Financial Reports.

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

1 February 201922 May 201927 June 2019
2 July 2019
4 July 2019

Third-quarter results 2018/19
Year-end results 2018/19
Annual General Meeting of Shareholders for the financialyear 2018/19
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 developopportunities in existing and new markets with new applications. LEM is a mid-size,

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

global company with approximately 1’530 employees worldwide. It has production
plants in Beijing (China), Sofia (Bulgaria), Geneva (Switzerland) 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

Appendix:Key figures
In CHF millions

2017/18

2018/19

Changes

Orders received
Industry segment
Automotive segment
Total LEM

Q1
63.9
14.8
78.8

Q2
58.7
19.4
78.0

Q3
63.1
15.6
78.7

Q4
70.4
13.8
84.2

Q1
68.0
17.9
86.0

Q2
56.6
23.5
80.0

Q2 to Q2
-3.6%
+21.1%+2.6%

Q2 to Q1
-16.8%+30.9%-6.9%

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

Q1
1.02
1.11
1.04

Q20.96
1.27
1.02

Q3
1.110.98
1.08

Q4
1.140.94
1.10

Q10.961.04
0.98

Q20.931.160.99

Q2 to Q2
-3.1%
-8.6%
-3.3%

Q2 to Q1
-3.1%
+12.2%+1.3%

Sales
Industry segment
Automotive segment
Total LEM

Q1
62.6
13.3
75.9

Q2
61.1
15.2
76.3

Q3
56.9
15.9
72.8

Q4
61.6
14.6
76.2

Q1
70.8
17.3
88.0

Q260.820.1
80.9

Q2 to Q2
-0.5%
+32.4%+6.1%

Q2 to Q1-14.1%+16.7%-8.1%

EBIT
Industry segment
Automotive segment
Total LEM

Q1
13.3
2.7
16.0

Q2
12.6
3.3
15.9

Q3
11.3
3.3
14.6

Q4
13.9
1.3
15.3

Q1
15.8
2.8
18.5

Q2
13.0
4.0
17.0

Q2 to Q2
+3.2%
+21.4%+7.0%

Q2 to Q1
-17.6%+44.5%-8.3%

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

Sales
Cost of goods sold
Gross margin2018/19

2017/18

Changes

168’982(91’375)
77’607152’197(82’781)
69’417

45.9%

45.6%

(15’296)(13’824)(13’067)0133
35’553(15’040)(12’511)(10’130)0135
31’870

21.0%

20.9%

Financial expense
Financial income
Foreign exchange effect

(112)
55
(1’047)

(118)
45
1’514

Profit before taxes
Income taxes

34’449(7’120)33’312(6’840)+3.4%

Net profit

27’32926’472

+3.2%

16.2%

17.4%

Gross margin (in %)Sales expense
Administration expense
Research & development expense
Other expense
Other incomeEBITEBIT margin (in %)Net profit margin (in %)LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland+11.0%+11.8%+11.6%

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