Half Year Report
2018/19
At the heart of power electronics

Business Report
Dear Shareholders,
LEM achieved an excellent start to the year 2018/19 withstrong, broad-based sales growth in the first quarter. Sales
performance in the second quarter was mixed, with sustained
growth in our green cars business but a weakening in Industry businesses. Nevertheless, we have increased our market
share in all Industry businesses and maintained 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 renewable energies of theChinese Government starting in June 2018 affected our Industry sales. In our target markets, we have noticed rising uncertainty about future developments and subdued investment
sentiment.
Increasing investment in innovation and infrastructure for
future growth remained our top priority. We expanded ourteam at our new R&D site in Lyon and continued to reinforce
the Automotive organization to accommodate the current andexpected growth of the business. Our innovative strength is
widely recognized by our customers, as demonstrated by the
Supplier Award in Innovation from a major European electronics group.
Financial Highlights
Our sales increased by 11.0 % to CHF 169.0 million in the firsthalf of 2018/19. At constant exchange rates, sales increasedby 8.0 %. Bookings for the first six months totaled CHF 166.0
million, up 5.9 % on the same period in 2017/18. Due to thehigh sales, the book-to-bill ratio declined from 1.03 to 0.98.
Our gross margin was 45.9 %, up from 45.6 % in the first halfof 2017/18, while EBIT reached CHF 35.6 million, an increaseof 11.6 % on the first half of 2017/18. Our EBIT margin for the
first six months of 2018/19 was 21.0 %, compared with 20.9 %a year earlier. Volume growth, production efficiency improvements, and a favorable product mix countered the impact ofprice erosion in our markets.
Net profit came in at CHF 27.3 million, an increase of 3.2 %compared with the first half of 2017/18. Free cash flow in thefirst half of 2018/19 was CHF 15.3 million, compared with
CHF 6.5 million a year earlier.
As at 30 September 2018, total assets stood at CHF 192.9
million. Following a dividend payment of CHF 45.6 million in
July 2018, equity was CHF 89.3 million (CHF 78.7 million as
at 30 September 2017), representing an equity ratio of 46.3 %(46.1 % as at 30 September 2017).

LEM | Half Year Report 2018/19

2

Industry Segment – Mixed Sales Development
First-half sales in the Industry segment totaled CHF 131.6 million, up 6.4 % on the same period a year earlier. At constantexchange rates, sales increased by 3.3 %. After strong sales
across all businesses and regions in Q1 of 2018/19, sales
growth slowed in Q2 of 2018/19 compared to Q1. Our underlying growth drivers automation, renewable energies andenergy efficiency remain strong.
While business was robust in Europe and North America, policy changes in China affected our 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 in 2018/19.
– –Sales in the drives & welding business grew by 5.4 % compared with the first half of 2017/18. We achieved higher
sales in all regions except China, where investment 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 businesswere stable ( – 0.1 %) compared with the first six months of
2017/18. We recorded the anticipated decrease following
the reduction of government support for renewable energies in China. At the same time, business performance wasstrong in Europe, where we acquired market share, as wellas in India.
– –Increased infrastructure investment in all regions supported
LEM's traction business, which grew by 16.2 %. We saw
most activity with projects for locomotives for high-speed
trains in Asia and freight traffic in Europe and increased
market share.
– –Sales in the high-precision business were up by 27.4 %,while the test & measurement market continued to growrapidly, driven by robust demand for green cars test
benches. We 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
with China 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 half of 2017/18. The EBIT margin was
impacted by the implementation of our investment program
into new products and the development of the Automotive
organization to keep up with current and expected growth.

Flexibility proved to be a major challenge during the reporting
period with sharp demand fluctuations in Industry, strong
growth in Automotive, and the industry-wide shortage of electronic components. We still maintained our delivery performance at a high level.

– –Sales in the green cars business increased strongly by
65.2 % compared with the 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 %). Allregions were equally affected.

Outlook
Although the current trade disputes have not yet had a significant impact on our business, if they remain unresolved,
such new trade barriers or geopolitical tensions will pose arisk to global growth. The renewable energies business may
be temporarily weaker but expected to recover in the future.
The persistent uncertainty, however, makes forecasting moredifficult for the Industry businesses. Our green cars businessis set to remain strong.

Executing our Strategy– –Increasing our technology leadership
Two years ago, we decided to significantly increase our R&D
activities in order to extend our technological lead. For the
first six months of 2018/19, our R&D expenses amounted to
CHF 13.1 million (+29.0 %), representing 7.7 % of sales; thiscompares with a long-term average of about 5.5 % of sales.
We executed our innovation strategy step by step. We have
expanded the team at our new R&D center in Lyon and expect
the first products developed in Lyon to be launched soon. We
focused our R&D activities on products for newly emerging
applications such as smart grid and fast-charging stations forelectric vehicles, and products with new technologies suchas integrated primaries and add-on features (e.g. embedded
software). We believe these initiatives have the potential tosignificantly increase our addressable market.
In the first half of 2018/19, we launched the CAB 500, a newhighly accurate battery management product for green cars
and stationary battery systems with a higher current range
than the previous version. For solar applications we launchedthe LDSR, a new sensor to measure leakage current in solar
inverters. For traction applications we launched a highly compact and accurate voltage sensor. For test & measurement
and medical applications we launched the second product ofour new IN family for currents up to 1' 000 A with embedded
software.

For the full financial year 2018/19, we expect sales of aroundCHF 320 million compared with CHF 301.2 million for the full
financial year 2017/18. We expect our EBIT margin around20 %.
Thank you for your continued trust in LEM.
Yours sincerely,

Andreas Hürlimann
Chairman of the Board of Directors

Frank Rehfeld
Chief Executive Officer– –Increasing our efficiency and production flexibility
In order to increase efficiency we continued to transfer production lines to our sites in China and Bulgaria. Five years
after its inauguration, our site in Bulgaria is now our secondlargest production site with more than 300 employees and18.5 % of global output. We also stepped up our automation
efforts at our cost-competitive sites with the introduction of
new collaborative robots in China.

LEM | Half Year Report 2018/19

3

Key Figures, Financial Calendar,
Contacts
Key figures

April to September
2018/19
In CHF millions

2017/18
In CHF millions

ChangeIn %Orders received
Book-to-bill ratio
Sales
Gross profit
in % of sales
EBIT
in % of sales

166.0
0.98
169.0
77.6
45.9 %
35.6
21.0 %

156.8
1.03
152.2
69.4
45.6 %
31.9
20.9 %

+5.9
– 4.6
+11.0
+11.8
+0.3 pt+11.6+0.1 pt

Net profit
EPS basic (CHF)

27.3
23.99

26.5
23.23

+3.2
+3.3

Operating cash flow
Investing cash flow

22.4
– 7.1

14.5
– 8.0

+54.3
+11.6

30.9.201831.3.2018

Change– 19.1
89.3
46.3

12.6
109.0
59.2

N/A
– 18.1– 12.9 pt

1'317.8
1'528

1'812.6
1'527– 27.3+0.1

Net financial assets/(liabilities)
Shareholders' equity
Equity ratio (in % of total assets)
Market capitalization
Employees (in FTEs)

In
CHF
millions
In CHFmillions
Sales
per segment

In CHFmillions
In CHFmillions
Regional
sales breakdown

In CHF millions
90

In CHF millions
88.0 88.0

9080.9 80.9

90

90

80

80 75.9 75.9

80

80 75.9 75.9

70

70

70

70

60

60

60

60

50

50 54% 54%

40

40

30

30 15% 15%

20

20

10

10 31% 31%

50

50

40

40

30

30

20

20

10

10

0

0

76.3 76.3

72.8 72.8

76.2 76.2

80% 80%82% 82%

18% 18%80% 80%20% 20%78% 78%22% 22%

75% 75%

81% 81%

19% 19%20% 20%25% 25%0

Q1 2017/18
Q2 2017/18
Q3 2017/18
Q4 2017/18
Q1 2018/19
Q2 2018/19
Q1 2017/18
Q2 2017/18
Q3 2017/18
Q4 2017/18
Q1 2018/19
Q2 2018/19

Industry
segment
Industry
segment
Automotive
segment
Automotive
segment

88.0 88.0
76.3 76.3

53% 53%

14% 14%

33% 33%72.8 72.8

55% 55%80.9 80.9

76.2 76.2

46% 46%

55% 55%

14% 14%

13% 13%

39% 39%33% 33%

14% 14%

31% 31%

52% 52%

14% 14%

33% 33%0
Q1 2017/18
Q2 2017/18
Q3 2017/18
Q4 2017/18
Q1 2018/19
Q2 2018/19
Q1 2017/18
Q2 2017/18
Q3 2017/18
Q4 2017/18
Q1 2018/19
Q2 2018/19

of theworld
AsiaAsia
andandrestrestof theworld
North
America
North
America

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

1 February 201922 May 201927 June 2019

Third quarter results 2018/19
Year-end results 2018/19
Annual General Meeting of Shareholders
for the financial year 2018/19

2 July 2019
4 July 2019

Dividend ex-date
Dividend payment date

LEM | Half Year Report 2018/19

4

Media and investor contact
Andrea Borla (CFO)
Phone: +41 22 706 12 50
E-mail: investor@lem.com

Address
LEM Holding SA
Avenue Beauregard 1
1700 Freiburg/Fribourg
Switzerland
Phone: +41 26 460 10 30
Fax: +41 26 460 10 39
www.lem.com

Interim
Consolidated
Financial
Statements

LEM | Half Year Report 2018/19

5

Consolidated Statement of
Financial Position
Assets
Notes

In CHF thousands

Current assets
Cash and cash equivalents
Accounts receivable
Inventories
Income tax receivable
Other current assets
Total current assets

30.9.201831.3.2018

20'91371'25136'215794
2'875
132'048

17'63066'64835'787
131
2'541
122'737

13'13740'438
5'533
1'741
60'84914'46939'937
6'181
906
61'493

192'897

184'230Notes

30.9.201831.3.2018

94
5

23'07924'731
5'277
927
40'000716
94'73025'71826'359
6'037
682
5'000
778
64'574

2'411
4'903
1'584
8'899

1'026
6'392
3'205
10'623103'629

75'198570(1'074)9'750
80'02389'268570(1'091)
12'997
96'556
109'032

192'897

184'230

9Noncurrent assets
Deferred tax assets
Property, plant and equipment
Intangible assets
Other noncurrent assets
Total noncurrent assets

9

Total assets

Liabilities and equity
In CHF thousands

Current liabilities
Accounts payable
Accrued expenses
Income tax payable
Current provisions
Interest-bearing loans and borrowings
Other current liabilities
Total current liabilities
Noncurrent liabilities
Noncurrent provisions
Deferred tax liabilities
Other noncurrent liabilities
Total noncurrent liabilities

4
9
6

Total liabilities
EquityShare capital
Treasury shares
Reserves
Retained earnings
Total equity

7
7
7

Total liabilities and equity

LEM | Half Year Report 2018/19

6

Consolidated
Income Statement
April to September
2018/192017/18

Sales
Cost of goods sold
Gross margin

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

Sales expense
Administration expense
Research & development expense
Other expense
Other income
Operating profit(15'296)(13'824)(13'067)
0133
35'553(15'040)(12'511)(10'130)0135
31'870Financial expense
Financial income
Exchange effect

(112)
55
(1'047)

(118)
45
1'514

Profit before taxes

34'44933'312(7'120)(6'840)27'32926'472

2018/192017/18

23.99

23.23

In CHF thousands

Income taxes

Notes

8

9

Net profit

Earnings per share, in CHF
Basic and diluted earnings per share

Notes

The accompanying notes are an integral part of the consolidated financial statements.

LEM | Half Year Report 2018/19

7

Consolidated Statement ofComprehensive Income
April to September
In CHF thousands

2018/192017/18

Net profit for the period recognized in the income statement

27'32926'472(3'806)575(3'231)354

Remeasurement gains/(losses) on defined benefit plans
Income tax
Total other comprehensive income not to be reclassified to
profit and loss in subsequent periods

2'584
(549)
2'035

1'252
(272)
979

Other comprehensive income/(loss) for the period, net of tax(1'196)

1'333

Total comprehensive income for the period

26'13327'805

Other comprehensive income to be reclassified to
profit and loss in subsequent periods
Currency translation difference
Income tax
Total other comprehensive income to be reclassified to
profit and loss in subsequent periods

354

Other comprehensive income not to be reclassified to
profit and loss in subsequent periods

Consolidated Statement of
Changes in Equity
Attributable to shareholders
Notes

In CHF thousands

1 April 2017
Net profit for the period
Other comprehensive income/(loss)
Total comprehensive income
Dividends paid
Movement in treasury shares
30 September 2017

1 April 2018
Net profit for the period
Other comprehensive income/(loss)
Total comprehensive income
Dividends paid
Movement in treasury shares
30 September 2018

LEM | Half Year Report 2018/19

8

Share
­capital

Treasuryshares570(906)

12'849

570

231
(676)

(231)
12'619570(1'091)

13'034

7
7

Capital Translation
reserve
reserve570

17(1'074)(17)
13'017

Total
equity(3'383)81'35090'48026'47226'472
354
979
1'333
354
27'451 27'805(39'889) (39'889)
337
337(3'029)69'24978'733(37)(3'231)(3'231)

7
7

Retainedearnings(3'268)96'556 109'032
27'329 27'329
2'035(1'196)29'36426'133(45'561) (45'561)
(335)
(335)
80'023 89'268

Consolidated Cash
Flow Statement
April to September
2018/192017/18

Cash flow from operating activities
Profit before taxes
Adjustment for noncash items and taxes paid
Cash flow before changes in net working capital
Cash flow from changes in net working capital
Cash flow from operating activities

34'449(1'450)32'999(10'589)
22'40933'312(744)
32'568(18'045)
14'523

Cash flow from investing activities
Investment in fixed assets
Investment in intangible assets
Increase (–) / decrease (+) in other assets
Cash flow from investing activities(7'033)(110)
40(7'104)(7'798)(193)(43)(8'033)(335)(45'561)
35'000(10'896)337(39'889)
34'000(5'552)

Change in cash and cash equivalents

4'409

937

Cash and cash equivalents at the beginning of the period
Exchange effect on cash and cash equivalents
Cash and cash equivalents at the end of the period

17'630(1'127)
20'91312'809129
13'876

In CHF thousands

Cash flow from financing activities
Treasury shares acquired (–) /divested (+)
Dividends paid to the shareholders of LEM Holding SA
Increase (+) / decrease (–) in financial liabilities
Cash flow from financing activities

Notes

7
7
5

LEM | Half Year Report 2018/19

9

Notes to the Interim Consolidated
Financial Statements
1 	 General information
LEM Group (the Group) is a market leader in providing innovative and high-quality solutions for measuring electricalparameters. 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.

The preparation of the interim consolidated financial statements in conformity with IFRS requires management to makeestimates and assumptions that affect the reported amountsof revenues, expenses, assets and liabilities and related disclosures at the date of the interim financial statements. Theseestimates are based on management's best knowledge ofcurrent events and actions that the Group may undertake inthe future. However, actual results could differ from thoseestimates.

2 	 Significant accounting principles
These unaudited consolidated financial statements for thesix months ended on 30 September 2018 have been preparedin accordance with International Accounting Standard (IAS)
34 "Interim Financial Reporting". They do not include all theinformation and disclosures presented in the annual consolidated financial statements and should therefore be readin conjunction with those for the year ended 31 March 2018.

The financial information is presented in thousands of CHF.
The totals are calculated with the original unit amounts, which
could lead to rounding differences. These differences in thousands of units are not changed in order to keep the accuracyof the original data.
In 2018/19, LEM Group introduced the following revised
standards and interpretations:

The accounting and valuation policies are consistent withthose applied in preparing the annual consolidated financial
statements for the year 2017/18, except as revised by the
newly effective accounting standards/interpretations.
Standard or i­nterpretation

Title

ImpactEffective date

IFRS 9IFRS 15IFRIC 22
Amendments

Financial Instruments
Revenue from Contracts with Customers and its Amendments
Foreign Currency Transactions and Advance Consideration
Annual improvements to IFRS 2015 – 2017

See below
See below
None
None

1 January 2018
1 January 2018
1 January 2018
1 January 2018

IFRS 15 deals with revenue recognition and establishes principles for reporting useful information to users of financial
statements about the nature, amount, timing and uncertainty
of revenues and cashflows arising from an entity's contracts
with customers.
The Group sales relate primarily to the delivery of manufactured products. They may contain some additional performance obligations such as freight costs recharges or specificproduct developments which are highly dependent on thedelivery of our transducers. The Group is recognizing revenues at point in time according to the transfer of control of
our products which usually corresponds to the recognitionof revenue according to the delivery terms and is in line withIFRS 15 based on the performance obligations identified.
The Group has applied IFRS 15 as per the modified retrospective method; the new standard does not have any material impact on recognition and measurement of revenue but
results in increased disclosures.

LEM | Half Year Report 2018/19

10

IFRS 9 generates changes to the classification and measurement of financial instruments as well as to the impairment offinancial assets, in particular bad debt allowances. The
Group implemented the new standard as of 1 April 2018.
The exemption from full retrospective application for theclassification and measurement requirements has been
applied. As a consequence, comparative figures were notrestated.
The bad debt allowance calculation has been adjusted inorder to reflect the forward-looking expected credit loss
model using the Group's historical credit loss experience,adjusted for forward-looking factors specific to the customers and/or the economic environment. The new calculation
mainly impacts the not past due receivables. This impact
being insignificant at 1 April 2018, no restatement was performed at that date.
The following table summarizes the principal exchange rates
that have been used in the translation process.

Period-end rate for balance sheet

Period average rate for income statement

Currency

30.9.201831.3.2018

Var. in %2018/192017/18

Var. in %

BGN
CNY
DKK
EUR
GBP
JPY
RUB
USD

0.582
0.143
0.153
1.139
1.278
0.0086
0.015
0.981

0.600
0.152
0.157
1.174
1.336
0.0090
0.017
0.953

– 3.0
– 5.9
– 2.5
– 3.0
– 4.3
– 4.4
– 11.8
+2.9

0.592
0.149
0.155
1.158
1.309
0.0089
0.015
0.983

0.565
0.144
0.149
1.106
1.258
0.0088
0.017
0.973

+4.8
+3.5
+4.0
+4.7
+4.1
+1.1
– 11.8+1.0

3 	 Segment information
Business segment information
In CHF thousands

April to September 2017
Sales
Operating profit

April to September 2018
Sales
Operating profit

Industry

Automotive

LEM Group
Total

123'691
25'93128'507
5'939

152'197
31'870Industry

Automotive

LEM Group
Total

131'580
28'80537'401
6'748

168'982
35'553

Geographical information
China

USA

Germany

Japan

Italy

Switzerland

Rest ofthe world

LEM Group

In CHF thousands

2018/192017/18

2018/192017/18

2018/192017/18

2018/192017/18

2018/192017/18

2018/192017/18

2018/192017/18

2018/19

Sales

57'48953'19821'95320'991

19'96918'92813'93113'297

5'907

5'413

1'872

1'514

47'86138'856

168'982 152'197

4 	 Current and noncurrent provisions
Warranty and customer claims
Provisions for warranty and customer claims have been estimated based on past experience and the risk assessment ofmanagement. The warranty provision is expected to be usedover the next five years.
The increase in provisions as of 30 September 2018 is linked
to quality issues that occurred in the first half of 2018/19.
Litigations and consumption taxes
Despite the care that LEM applies in the separation processwith personnel, such separation may result in legal conflicts.
The Group will defend its case and management estimates
the reasonable risk to be provided for.
The Company operates in multiple jurisdictions with complex
legal and tax regulatory environments. In the frame of thecontinuous improvement of its processes and systems, LEM
has reviewed the consumption taxes in several countries. It
has appeared that some LEM's subsidiaries may not havebeen fully compliant with their local consumption tax regulations. As a consequence, LEM has estimated consumption

2017/18

tax provisions according to management ' s best judgment.
Some of these positions are inherently uncertain and include
the interpretation of local regulations applied to complex
transactions.

5 	 Current financial liabilities
LEM Group increased its financial short-term liabilities to
CHF 40.0 million (CHF 5.0 million at 31 March 2018) via shortterm credit lines in order to finance the CHF 45.6 million
dividend payment of July 2018.

6 	 Other noncurrent liabilities
The decrease of the noncurrent liabilities is mainly linked tothe decrease of the retirement benefit obligations due to thediscount rate increase from 1.00% to 1.25% and to theincrease of the fair value of plan assets impacting the othercomprehensive income by CHF 2.6 million on a pre-tax basis.
At 30 September 2018, the fair value of plan assets is higher
than the defined benefit obligations resulting in a net pension
asset of CHF 0.9 million.

LEM | Half Year Report 2018/19

11

7 	 Equity
At the shareholders' meeting held in Fribourg on 28 June
2018, the shareholders approved the distribution of an ordinary dividend of CHF 40.00 per share resulting in an estimated payout of CHF 45'562 thousand. The gross dividend
effectively paid on 5 July 2018 amounted to CHF 45'561 thousand (prior year: ordinary dividend of CHF 35.00; total
CHF 39'889 thousand).
In the frame of its market-making contract, LEM holds own
shares. At 30 September 2018, the Group held 896 shares(31 March 2018: 652).

8 	 Operating profit
Our sales increased by 11.0 % to CHF 169.0 million in the firsthalf of 2018/19; at constant exchange rates, this represents
a sales increase of 8.0 %.

withstand challenge by tax authorities. Some of these positions are inherently uncertain and include those relating totransfer pricing matters and the interpretation of income tax
laws applied to complex transactions. The Company periodically reassesses its tax positions. Changes to the financial
statement recognition, measurement, and disclosure of tax
positions are based on management's best judgment given
any changes in the facts, circumstances, information available and applicable tax laws. Considering all available information and the history of resolving income tax uncertainties,
the Group believes that the ultimate resolution of such matters will not have a material effect on its financial statements.
Differences between the final tax outcome and the amounts
that were initially recorded impact the income and deferredtaxes in the period in which such determinations are made.
The Group calculates its expected average tax rate as aweighted average of the tax rates in the tax jurisdictions inwhich the Group operates.

Our gross margin stood at 45.9 %, slightly up from 45.6 % in
the first half of 2017/18, while EBIT reached CHF 35.6 million,
an increase of 11.6 % on the first half of 2018/19. Our EBIT
margin for the first six months of 2018/19 was 21.0 %, compared with 20.9 % a year earlier. Increasing sales volumes
together with a fairly stable gross margin rate supported theoperating result achieved in the first half of 2018/19.

At 20.7 %, the tax rate remains fairly stable compared to thefirst half of 2017/18.

9 	 Income taxes

In order to finance the CHF 45.6 million dividend payment
the financial liabilities were increased by CHF 35.0 million via
our bank credit lines.

Income tax expense is calculated based on the best estimate of
the applicable annual income tax rate expected for the full year.
The Group operates in multiple jurisdictions with complex
legal and tax regulatory environments. In certain of thesejurisdictions, the Group has taken income tax positions thatmanagement believes are supportable and are intended to10 	 Consolidated cash flow statement
The cash flow from changes in net working capital evolution
is mainly linked to the increase of the accounts receivable asa consequence of the activity increase.

11 	 Financial assets and liabilities
The Group classifies its financial assets and liabilities into
the following categories as per IFRS 7:

Financial assets
In CHF thousands

30.9.2018
Fair value

31.3.2018
Fair value

Financial assets at
amortized cost 1)

Cash and cash equivalents
Accounts receivable
Other current financial assets
Other noncurrent financial assets
Total

20'91371'251
672
822
93'65917'63066'648215
906
85'399X
X
X
X

In CHF thousands

30.9.2018
Fair value

31.3.2018
Fair value

Accounts payable
Accrued expenses
Derivative financial instruments – current
Other current financial liabilities
Other noncurrent financial liabilities
Total

23'07924'73130
40'00095
87'93625'71826'359241
5'000
90
57'408Financial liabilities

1) "Loans and receivables" at 31.3.2018

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Financialliabilities atamortized cost

At fair value
through
profit & loss

At fair value
through
profit & loss

X
X
X
X
X

In CHF thousands

Interest-bearing loans and borrowings
Total

Cash impact

Noncash impact

1.4.2017

Cashinflow/(outflow)

Fair value changes
and others

0

34'00034'000Noncash impact
Fair value changes
and others

1.4.2018

Cashinflow/(outflow)

Interest-bearing loans and borrowings
Total

5'000
5'000

35'00035'000The management assessed that fair value level of cash andcash equivalents, accounts receivables, other current andnoncurrent assets, accounts payables, accrued expenses
and other current and noncurrent liabilities that are not measured at fair value approximate their carrying amounts in viewof their short-term nature and are consequently not separately disclosed.
The Group enters into derivative transactions such as currency risk reversal and forward contracts to hedge the USD,
EUR and JPY risks. The purpose of these currency hedges
is to manage the currency risks arising from the Group's
operations.
It is the Group's policy that no derivatives for speculative
purposes shall be entered into.

34'00034'000Cash impact

In CHF thousands

30.9.201730.9.2018

40'00040'000

The Group's financial liabilities at fair value amount to CHF 30
thousand per 30 September 2018 (CHF 241 thousand per
31 March 2018), all classified under level 2.
During the last reporting period, there were no transfers
between Level 1 and Level 2 fair value measurements, andno transfers into and out of Level 3 fair value measurements.

12 	 Events after the balance sheet date
The Board of Directors and Executive Management are notaware of any significant events up to the date of approvalof the interim consolidated financial statements on 31 October 2018 that would require an adjustment in carrying
amounts of the Group's assets and liabilities or disclosureof non-adjusting events.

The main risks arising from the Group's financial instruments
are foreign currency risks and credit risks, whereas the others are of minor or no impact.
The Board of Directors reviews and agrees policies for managing each of those risks.

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