PRESS RELEASE
Q3 and first nine months results from April to December for the financial year
2017/18
LEM reports continued growth
Fribourg, 8 February 2018 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces first nine months of 2017/18 results (compared with first ninemonths of 2016/17):• Bookings amounted to CHF 235.5 million, an increase of 17.7%(CHF 200.0 million)• Sales increased by 13.8% to CHF 225.0 million (CHF 197.8 million); at
constant exchange rates sales increased by 13.7%• The book-to-bill ratio improved to 1.05 (1.01)• EBIT increased by 11.6% to CHF 46.5 million (CHF 41.7 million); the EBIT
margin decreased to 20.6% (21.1%)• Net profit for the period rose by 16.5% to CHF 38.1 million(CHF 32.7 million)
Q3 of 2017/18 compared with Q3 of 2016/17:• Bookings amounted to CHF 78.7 million, an increase of 16.2%(CHF 67.7 million)• Sales increased by 11.8% to CHF 72.8 million (CHF 65.1 million)• The book-to-bill ratio increased to 1.08 (1.04)• EBIT increased by 3.1% to CHF 14.6 million (CHF 14.1 million); the EBIT
margin decreased to 20.0% (21.7%)• Net profit for the period rose by 9.7% to CHF 11.6 million(CHF 10.6 million)“We have been taking advantage of a strong global economy so far this year.
Increased investment in capital goods drove the demand in our Industry businesses.
At the same time, the green cars boom in China and Korea supported ourAutomotive businesses. We continue to develop our production footprint andstrengthen the Automotive organization to meet growing demand. Constant pricepressure from customers affected our margins. Still, we maintained operating
margins above 20% thanks to efficiency improvements in production, sales andadministration, while at the same time significantly increasing our R&D activities. We
see increased interest in our new product family with integrated primaries for ecodrives and growing green cars activity in Europe”, said François Gabella, CEO ofLEM.
Industry segment: taking advantage of a strong global economy
Sales in the Industry segment totaled CHF 180.6 million in the first nine months of
2017/18, up 13.2% on the same period a year earlier. At constant exchange rates,sales increased by 12.8%.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

The strong global economic environment supported all Industry businesses. Sales
grew by 21% in China, by 10% in Asia excluding China and by 12% in Europe. Sales
performance in North America was mixed (-2%) due to strong drives business butweaker renewables business in the US.
EBIT increased from CHF 32.4 million for the first nine months of 2016/17 toCHF 37.3 million in 2017/18. The EBIT margin increased from 20.3% to 20.6%.
----

Sales in the drives & welding business grew by 9% compared with the firstnine months of 2016/17. Sales growth was strongest in China, Japan andGermany. Growth was driven by strong demand from automation and robotics
industries.
Sales in the renewable energies & power supplies business increased by
16% on the first nine months of 2016/17. Continued demand from solar
energy in China and Europe supported the performance. The Solar businessin the US remains weak due to inverter manufacturers moving away from theUS to Europe and Asia.
LEM’s traction business grew by 22%. The Company achieved strong sales
with light rail and locomotive projects in India and China, track-side projects(safety and maintenance) in Europe and China and energy metering inEurope.
Sales in the project-driven high-precision business were up by 4%. Activity in
China slowed, with no repeat of last year’s HVDC projects. The test &measurement market picked up, mainly driven by higher demand for green
cars test benches.

Automotive segment: green cars business continues on its growth path
Sales in the Automotive segment for the first nine months of 2017/18 reached
CHF 44.4 million, up 16.1% on the same period of 2016/17. At constant exchange
rates, sales increased by 17.4%. Strong green cars growth in all regions contrasted
with a declining US conventional cars business.
LEM is constantly increasing manufacturing capacities to meet increasing demand as
well as its R&D, marketing and sales resources worldwide to seize emerging
opportunities. LEM expects increasing competitive pressure as the growing greencars market attracts players inside and outside the Automotive industry.
EBIT for the first nine months of 2017/18 remained stable at CHF 9.2 million.
--LEM benefitted from the power train electrification trend in the global car
industry. Sales in the green cars business increased by 70% on the previousyear. Growth was driven by the Company’s strong market position in the fast
growing Chinese and Korean markets. LEM now sees a strong commitment
from large car manufacturers in Europe and the US to launch new electric or
hybrid-electric vehicle platforms.
In the conventional cars business, sales decreased as expected by 17%. LEM
experienced a weaker US business due the ongoing technological shift.

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 the positive global economic environment to remain asupporting factor. The green cars business is set to remain strong, but volatiledevelopment is to be expected as this business has not yet reached maturity.
With the increasing share of sales in China (35% of Group sales), LEM expects astronger seasonal impact in its fourth financial quarter (Chinese New Year).
For the full financial year 2017/18, LEM forecasts sales of CHF 290 to 300 million
compared with CHF 264.5 million for full-year 2016/17. LEM expects the EBIT margin
to come in at around 20%.
Media, investors and analyst conference call and webcast
François Gabella, CEO, and Andrea Borla, CFO, will provide a detailed presentationof the Q3 and first nine months of 2017/18 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 inthe following link: http://services.choruscall.eu/links/lem180208.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.
Financial calendar
The financial year runs from 1 April to 31 March

23 May 2018
28 June 2018
3 July 2018
5 July 2018

Year-end results 2017/18
Annual General Meeting of Shareholders for the year2017/18
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 1’520 employees worldwide. It has production
plants in Beijing (China), Geneva (Switzerland), Sofia (Bulgaria) 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 theLEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

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

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

Appendix:
Key figures
In CHF millions

2016/172017/18

ChangeOrders received
Industry segment
Automotive segment
Total LEM

Q1
52.7
12.5
65.2

Q2
53.5
13.6
67.1

Q3
55.4
12.3
67.7

Q4
58.1
13.0
71.2

Q1
63.9
14.8
78.8

Q2
58.7
19.4
78.0

Q3
63.1
15.6
78.7

Q3 to Q3 Q3 to Q2+13.8%+7.5%+27.1%-19.6%+16.2%+0.8%

Book-to-bill ratio
Industry segment
Automotive segment
Total LEMQ10.96
1.05
0.97

Q2
1.03
1.00
1.02

Q3
1.06
0.97
1.04

Q4
1.06
1.09
1.07

Q1
1.02
1.11
1.04

Q20.96
1.27
1.02

Q3
1.11
0.98
1.08

Q3 to Q3 Q3 to Q2+5.0%+15.4%+0.9%-22.9%
+4.0%
+5.6%

Sales
Industry segment
Automotive segment
Total LEM

Q1
54.9
12.0
66.9

Q2
52.1
13.6
65.7

Q3
52.5
12.6
65.1

Q4
54.8
12.0
66.8

Q1
62.6
13.3
75.9

Q2
61.1
15.2
76.3

Q356.915.9
72.8

Q3 to Q3 Q3 to Q2
+8.4%
-6.8%
+25.9%+4.3%+11.8%-4.6%

EBIT
Industry segment
Automotive segment
Total LEM

Q1
10.6
2.8
13.4

Q2
10.4
3.7
14.1

Q3
11.4
2.7
14.1

Q4
11.5
2.6
14.1

Q1
13.3
2.7
16.0

Q2
12.6
3.3
15.9

Q3
11.3
3.3
14.6

Q3 to Q3 Q3 to Q2-0.7%-10.2%+19.2%
-0.5%
+3.1%
-8.2%

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 December
In CHF thousands

2017/182016/17Sales
Cost of goods sold
Gross margin

224 998(122 075)
102 922

197 753(104 833)
92 920

45.7%

47.0%

(22 534)(18 705)(15 448)0226
46 461(20 358)(19 213)(11 846)(0)147
41 650EBIT margin (in %)

20.6%

21.1%

Financial expense
Financial income
Foreign exchange effect

(205)
85
1 714

(147)
52(674)

Profit before taxes
Income taxes

48 055(10 002)40 881(8 205)+17.5%Net profit of the period

38 05332 676+16.5%

16.9%

16.5%

Gross margin (in %)Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT

Net profit margin (in %)LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Var. (in %)+13.8%+10.8%+11.6%

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