PRESS RELEASE
Half year results from April to September for the financial year 2015/16
LEM’s business regained momentum in Q2 of 2015/16
Fribourg, 11 November 2015 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces sales of CHF 131.6 million, an EBIT of CHF 24.9 million and net
profit of CHF 19.8 million for the first half of 2015/16 (1 April to 30 September2015).
First half of 2015/16 compared with first half of 2014/15:
 Bookings amounted to CHF 126.9 million, increasing by 0.2%
(CHF 126.6 million)
 Sales increased by 0.1% to CHF 131.6 million; at constant exchange
rates sales increased by 3.4%
 Gross margin was at 45.5% (46.3%)
 EBIT decreased by 16.0% to CHF 24.9 million; the EBIT margin reached18.9% (22.5%)
 Net profit for the period was CHF 19.8 million, a decrease of 7.8%
(CHF 21.5 million)
Q2 of 2015/16 compared with Q1 of 2015/16:
 Bookings amounted to CHF 66.0 million, an increase of 8.5%
(CHF 60.9 million)
 Sales jumped by 13.8% to CHF 70.0 million (CHF 61.5 million)
 The book-to-bill ratio softened to 0.94 (0.99)
 EBIT increased by 36.7% to CHF 14.4 million; the EBIT margin was at
20.5% (17.1%)
 Net profit for the period increased by 23.2% to CHF 10.9 million (CHF 8.9million)“After a slowdown in Q4 of financial year 2014/15 and Q1 of 2015/16, our businessregained momentum in Q2 of 2015/16. Yet, the strength of the Swiss franc versus
most other currencies weighed on sales and margins. In addition, competitive
pressure and therefore price pressure remained intense. In China we recorded
progress in the increasingly important renewable energies, green cars and traction
businesses. This sustained performance is the result of our products’ technology andquality, and linked to strong presence with local production as well as customerservice. We observed a recovery in Europe and North America, supported by asteadier economic environment. Several ongoing design-in projects underline solidinterest in our new products”, said François Gabella, CEO of LEM.
Industry segment – importance of Chinese markets
First-half sales in the Industry segment totaled CHF 110.3 million, down 2.9% on thesame period a year earlier. At constant exchange rates, sales increased by 1.5%.
Seasonal effects in the renewable energies business and continued growth in China

LEM Holding SA
Avenue Beauregard 11700 Fribourg
Switzerland

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

supported LEM’s sales development. After a slow start into the financial year,activities in Europe and North America picked up across all businesses. LEM started
several design-in projects with its newly launched product families, which will help theGroup to further increase production output. Production of solar product families wasstepped up.
First-half EBIT decreased by 21.5%, from CHF 27.0 million in 2014/15 to CHF 21.2
million in 2015/16, mainly resulting from currency effects and price pressure. Sales
growth was strongest in China (+13%). North America recovered (+6%) but sales
performance in Europe (–9%) and Asia excluding China (–18%) was slow. Asia
remained the most important region with 47% of sales; China, with 32% of sales, wasthe single most important country.
Sales in the drives & welding business slowed by 9% compared with the firsthalf of 2014/15. Lower machine construction in China, because of lower
industrial activity in China and worldwide, slowed LEM’s sales in mostregions. LEM maintained its market share.
Sales in renewable energies & power supplies business increased by 8% on
the first six months of 2014/15. High investments in solar and wind farms led
to continued growth in China and India. In Japan, however, subsidies expired,
which caused a sharp decline. LEM achieved stabilization in North Americaand market share wins in Europe.
The traction business stabilized after a period of strong growth. The favorable
trend in China continued thanks to Chinese rail companies winning market
share at home and abroad. Infrastructure investments in Europe remained
subdued. Sales decreased by 7%.
LEM recorded a positive trend in the high-precision business with sales
growth of 6%. Seasonality in the test & measurement market in Asia andNorth America as well as good HVDC business in China contributed to thepositive result.

Automotive segment – growth in all regions
Sales in the Automotive segment reached CHF 21.3 million, up 18.5% on the same
period in 2014/15. At constant exchange rates, they increased by 15.3%. After a slow
start into the year, sales picked up in the second quarter with an increase of 25.6%
on the first quarter of 2015/16. The EBIT margin improved thanks to volume growth,
the currency situation (stronger USD) and a favorable product mix. Half-year EBIT
jumped to CHF 3.7 million compared with CHF 2.6 million in the first half of 2014/15.
In the conventional cars business, sales increased by 14%. LEM grew in linewith the market and kept its market share. The strong growth in US vehicle
production provided tailwind.
Sales in the green cars business jumped by 39% on the previous year. LEM
benefitted from government support for green cars in China. LEM won newprojects with Chinese car manufacturers, and started new hybrid car projects
in the US. Promising business opportunities with US and Korean
manufacturers were identified for the new product families.

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
Management expects a steady economic situation in Europe and the US while theChinese economic growth is set to slow. International currency fluctuations,particularly the strong Swiss franc, will remain a challenge. LEM has beenaddressing this challenge in the regular review of its international footprint for severalyears.
Normal seasonal decline is anticipated in the second half of the financial year
2015/16 because of the holiday seasons in China and in the rest of the world as well
as lower solar infrastructure investments during the winter months. For the fullfinancial year 2015/16, Management forecasts sales of CHF 250–260 million; thiscompares with CHF 257.8 million for full-year 2014/15 (achieved in a more favorable
foreign exchange environment than 2015/16). LEM expects the EBIT margin to bewithin the target range of 15% to 20%.
Media, investors and analyst conference call and webcast
François Gabella, CEO, Heinz Stübi, interim CFO until 31 October 2015, and Andrea
Borla, CFO as from 1 November 2015, will provide a detailed presentation of the halfyear 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 & EuropeUKUSAThe conference call will simultaneously be webcast. Please follow the instructions in
the following link: services.choruscall.eu/links/lem151111.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 2015/16 results and half-year report
The complete half-year report 2015/16 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 2016
9 June 2016
30 June 2016
5 July 2016
7 July 2016

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Third quarter results 2015/16
Year-end results 2015/16
Ordinary General Meeting of the Shareholders for the year
2015/16
Dividend ex-date
Dividend payment dateTel. : +41 26 460 10 30
Fax.: +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 1’350 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
Andrea Borla, CFO
Phone: +41 22 706 12 50
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

2014/15

2015/16

ChangeOrders received
Industry segment
Automotive segment
Total LEM

Q156.28.5
64.7

Q252.19.8
61.9

Q355.08.8
63.8

Q451.09.6
60.6

Q150.910.0
60.9

Q252.813.3
66.0

Q2 to Q2 Q2 to Q1+1.2%+3.8%+36.0% +32.6%+6.7%+8.5%

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

Q1
1.00
0.99
1.00

Q20.911.04
0.93

Q30.981.00
0.99

Q40.990.96
0.99

Q10.981.06
0.99

Q20.91
1.12
0.94Q2 to Q2 Q2 to Q1±0.0%-7.1%+7.7%+5.7%
+1.1%
-5.1%

Sales
Industry segment
Automotive segment
Total LEM

Q1
56.5
8.6
65.0

Q257.1
9.4
66.5

Q3
56.0
8.8
64.7

Q4
51.5
10.0
61.5

Q1
52.1
9.4
61.5

Q2
58.2
11.8
70.0

Q2 to Q2 Q2 to Q1+2.0% +11.7%+26.1% +25.6%+5.4% +13.8%

EBIT
Industry segment
Automotive segment
Total LEM

Q1
12.6
1.0
13.5

Q2
14.4
1.6
16.0

Q3
13.2
1.1
14.3

Q4

Q1

9.7
0.6
10.3

9.2
1.410.5

Q212.1
2.3
14.4

Q2 to Q2 Q2 to Q1-16.4% +31.8%+42.1% +70.0%-10.5% +36.7%

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
2015/16 2014/15
In CHF thousands
Sales
Cost of goods sold
Gross margin

131 567(71 696)
59 872

131 497(70 579)
60 918

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT(13 801)(14 085)(7 206)(4)94
24 871(11 783)(12 454)(7 414)(1)332
29 598

(107)
46533

(73)
131
(1 879)Profit before taxes

25 34227 777

Income taxes(5 525)(6 287)

Net profit of the period

19 81821 491

Financial expense
Financial income
Foreign exchange effect

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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