Elma Electronic : Interim Result as of June 30, 201715/08/17

Media Information

CH-Wetzikon, August 15, 2017

Interim Result as of June 30, 2017 Elma with significant increase in revenue and net profit The Elma Group has increased the order income and net sales in the first six months 2017 compared with the previous year. Elma improved the profitability and closes the first half year 2017 with a distinctly higher net profit.

• Order income increased by 6.7% to CHF 74.4 million (adjusted for currency translation effects: +7.2%)
• Net sales grew by 12.4% to CHF 69.1 million (adjusted for currency translation effects: +12.9%)
• Profitability improved with an EBIT of CHF 2.6 million (previous year: CHF 0.3 million) and a net profit of nearly CHF 1.5 million (previous year: CHF 0.2 million)
• All regions showed significantly improved results

Economic Environment and Market Development

Overall the Elma Group met stable market conditions in its relevant business segments. In the US, the economic development in the first six months of 2017 lagged behind the expectations raised by the US administration at the beginning of the year. Europe showed a robust economic growth. As a result of better than expected economic development in Asia, especially in China, the economy has picked up again.

While the first half of the previous year was still affected by significant project delays with key customers - particularly in the US as the largest region of the Elma Group - the business situation in the second half of 2016 improved noticeably. This positive development continues in the current business year 2017.

Order Income

In the first half of 2017, the order income of the Elma Group developed very positively and increased compared to the previous year. It rose overall by 6.7% to CHF 74.4 million (previous year: CHF 69.8 million); adjusted for currency translation effects, a plus of 7.2% was achieved. All three regions contributed to the growth.

In the Americas region, the order income in Swiss Francs was up 3.4%; in local currency the year-on-year increase was 3.0% to USD 34.9 million (previous year: USD 33.9 million). The Europe region exceeded the order income compared with the previous year by 9.3% to CHF 34.8 million (previous year: CHF 31.8 million); adjusted for currency translation effects it increased by 10.9%. The Asia region posted a 12.3% higher order intake of CHF 5.2 million (previous year: CHF 4.6 million); adjusted for currency translation effects the increase was 11.9%.

Net Sales

Elma closed the first half year 2017 with consolidated net sales of CHF 69.1 million (previous year: CHF

61.5 million). This represents a growth of 12.4%; adjusted for currency translation effects, sales increased by 12.9%. All three regions contributed with higher revenues.

The Americas region increased the net sales in the first half year 2017 by 19.1%; in local currency the growth was 18.6% and resulted in net sales of USD 31.5 million (previous year: USD 26.6 million). The Europe region increased their net sales overall by 4.0% to CHF 32.5 million (previous year: CHF 31.2 million); adjusted for currency translation effects a plus of 5.3% was achieved. Germany developed positively in the first half year of 2017 and contributed significantly to the increase in the net sales of the Europe region. The Asia region increased net sales by 34.6% to CHF 5.5 million (previous year: CHF 4.1 million; adjusted for currency translation effects net sales improved by 34.1%.

The product line System Solutions increased net sales by 14.0% compared to the previous year to CHF 48.2 million (previous year: CHF 42.3 million); adjusted for currency translation effects they grew 14.6%. The product line Enclosures & Components posted net sales of CHF 14.7 million (previous year: CHF 12.6 million) which represents an increase by 16.6%; adjusted for currency translation effects, sales rose by 16.7%. Rotary Switches on the other hand recorded a decrease of 6.0% to CHF 6.1 million (previous year: CHF 6.5 million); adjusted for currency translation effects sales were down 5.6%. The decline is primarily attributed to a smaller order volume from a key customer.

EBIT and Net Profit

All regions posted higher profits in the first half of the year 2017 and thus contributed to the improvement on the Group level. The Elma Group increased the EBITDA to CHF 3.9 million (previous year: CHF 1.7 million) and achieved an EBIT of CHF 2.6 million (previous year: CHF 0.3 million). The net profit in the first half year rose to nearly CHF 1.5 million (previous year: CHF 0.2 million). The profit per share amounted to CHF 6.36 (previous year: CHF 0.95).

Balance Sheet

As of June 30, 2017, Elma reported total assets of CHF 79.1 million (31.12.2016: CHF 76.8 million). The equity ratio decreased to 35.4% due to currency losses (31.12.2016: 36.1%). Net debts rose since the beginning of the year by CHF 2.3 million to CHF 24.8 million (31.12.2016: CHF 22.5 million) as a result of investments in net working capital.

Outlook

From today's perspective, Elma anticipates a continued positive trend in demand in its business segments for the second half of the year 2017. The goal for 2017 remains to considerably increase net sales and to improve the net profit compared with the previous year.

The complete 2017 Interim Report can be downloaded from our website at https://www.elma.com/en-eu/investors/reports/ abgerufen werden. Contacts:

Elma Electronic AG Hofstrasse 93

8620 Wetzikon / Switzerland

Fred Ruegg Edwin Wild

CEO Elma Group CFO Elma Group

Phone [phone] Phone [phone]

[e-mail]

About Elma

Elma Electronic is a worldwide provider of solutions for the construction of enclosure systems for electronics. The product range extends from electronic packaging components to modular enclosures, cabinets and backplanes through to complete system platforms. Elma also produces rotary switches for electronic applications. The flexibility that allows customer requirements to be met and our many years of experience in the development and production of components and systems for complex applications distinguish Elma as a reliable partner.

Please visit our website: www.elma.com

Disclaimer

This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Elma's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Elma's past and future filings and reports and in past and future filings, press releases, reports and other information posted on Elma Group companies' websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Elma disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This Media Release is published in German and in English. Should the English translation differ from the German original, the German version is binding.