Elma Electronic : - Interim Report as of June 30, 201518/08/15

2015_08_18_Pressrelease IR 2015-en

Media Information

CH-Wetzikon, August 18, 2015

Elma - Interim Report as of June 30, 2015

Order income increased and profitability improved

• Order income increased by 3.7% to CHF 57.3 million
• Revenue of CHF 55.4 million decreased by 4.3% versus previous year
• EBIT at CHF 1.5 million and net income at CHF 0.8 million ahead of previous year

Market development

Theeconomy in the United States showed a moderate growth in the first six months. The government bodies are still facing financing and cost pressures and are accordingly reluctant when awarding major
projects. In Europe, however, the economic situation has improved, especially in Germany and in the UK a revival of investment activity among customers was recorded. The dynamics of the Chinese economy, however, has slowed in the first half of 2015.
Revenue

In this mixed market environment Elma closed the first half year 2015 with a consolidated revenue of CHF

55.4 million (previous year: CHF 57.9 million) which represents a decline of 4.3%; adjusted for currency translation effects,sales fell by 3.9%. The Europe region showed encouraging growth; in particular the subsidiaries in Germany, UK and Israel were able to increase their sales significantly. Overall, the Europe region increased revenue in the first half 2015 by 2.0% to CHF 25.0 million (previous year: CHF 24.5 million); adjusted for currency translation effects,they grew by 9.7%. In the Americas region the revenue declined by 9.1% compared with the previous year; adjusted for currency translation effects,revenue was down 14% to USD 27.3 million (previous year: USD 31.7 million). Also the Asia region was marked by a weaker development. The revenue decreased by 7.7% to CHF 4.7 million (previous year: CHF 5.1 million); adjusted for currency translation effects it represents a decline of 12.7%.

Asofthe beginning of the business year 2015, the revenue of electronic cabinets will be allocated to the product line Enclosures & Components and no longer to the product line System Solutions. To ensure comparability with the previous year's figures, they have been adjusted accordingly. In the first half year the business with System Solutions remained stable. They achieved an almost unchanged revenue of CHF

34.5 million (previous year: CHF 34.6 million or -0.3%); adjusted for currency translation effects revenue went up 0.7%. The product line Enclosures & Components posted revenue of CHF 13.9 million (previous year: CHF 14.4 million), representing a decline of 3.2%; adjusted for currency translation differences revenue decreased by 4.4%. Sales of Rotary Switches declined by 21.2% to CHF 7.0 million (previous year: CHF 8.9 million); adjusted for currency translation effects the revenue was down 20.6%. The decline in revenue is primarily due to a lower order volume with a key customer in Asia.

Order Income
The order income developed positively in the first half year of 2015 and increased by 3.7% to CHF 57.3 million (previous year: CHF 55.3 million); adjusted for currency translation effects a plus of 4.0% was achieved. In the Americas region, the order income rose in Swiss Francs by 2.1%; in local currency a decline of 3.5% to USD 29.6 million (previous year: USD 30.7 million) was posted. The Europe region increased the order income by 3.3% to CHF 24.7 million (previous year: CHF 23.9 million); adjusted for
currency translation effects it went up 11.4%. Also the Asia region the order income rose significantly thanks to stronger demand in the Transportation sector and in Industrial Automation. The first half of the year resulted in an increased order income by 17.1% to CHF 4.6 million (previous year: CHF 4.0 million); adjusted for currency translation effects a plus of 10.7% was achieved.
Although the consolidated revenue declined over the previous year, Elma improved again the profitability in the first half year 2015. Elma achieved an EBITDA of CHF 2.8 million (previous year: CHF 2.6 million) and an EBIT of CHF 1.5 million (previous year: CHF 1.4 million). Elma closed the first half year 2015 with a net profit of CHF 0.8 million (previous year: CHF 0.7 million). The improvement was achieved due to a better gross margin and lower fixed costs respectively. The earnings per share increased to CHF 3.52 (previous year: CHF 3.11).
Media Information Elma Electronic AG, Wetzikon
August 18, 2015

For the first time the EBIT and the EBIT margin by region are disclosed in the notes to this interim report, in addition to the revenue by region. Elma is thereby implementing the new recommendation for listed companies (Swiss GAAP FER 31) whichwasputintoforcebyJanuary1,2015,requestingthedisclosureofadditionalinformation.
Balance Sheet
As of June 30, 2015, Elma reported total assets of CHF 66.3 million (31.12.2014: CHF 67.6 million). Despite a net profit of CHF 0.8 million, the equity ratio decreased from 40.3% to 39.3% due to high currency
translation adjustments of almost CHF 2.0 million. Net debts rose by CHF 0.7 million compared with
December 31, 2014, amounting to CHF 15.0 million.

Currency translation effects

Since the Swiss National Bank has ended its cap of 1.20 Swiss Franc per Euro on January 15, 2015, the average exchange rate of the Swiss Franc has appreciated by around 14% against the Euro in the first half year compared to the same period last year. Elma has addressed the currency issues at an early stage by

setting up its production capacities in the Euro area, in the USA and in China. Therefore, the recent currency changes led mainly to translation differences when converting local finance statements into Swiss Francs.

Outlook and objective

At present the market development in the second half year is difficult to predict. New currency adjustments or interventions by governments could have a significant impact. For the full business year 2015 Elma will

maintain the objective to increase revenue and to improve the operating result.

The complete 2015 Interim Report can be downloaded from our website at http://www.elma.com/en-eu/investors/reports/
Contacts:
Elma Electronic AG Hofstrasse 93
CH-8620 Wetzikon
Fred Ruegg Edwin Wild
CEO Elma Group CFO Elma Group
Tel. [phone] Tel. [phone]
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 behaviour 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.

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Media Information Elma Electronic AG,Wetzikon

August 18, 2015

Elma Group Key Figures

inCHF 1.00030.06.201530.06.2014

Order income 57.300 55,254

Revenue 55,448 57,915

EBITDA2.775 2,637

EBIT1.532 1,423 in % ofrevenue 2.8 2.5

Netincome 805 711

in % ofrevenue 1.51.2 in % ofaverageequity (ROE) 3.0 3.2

Headcount end ofperiod (FTE) 676 684

inCHF1.00030.06.201531.12.2014

Balance sheet total66,279 67,576

Shareholders'equity 26,022 27,210 in% ofbalance sheet total39.3 40.3

Information far Investors

The registeredshares ofElmaElectronic AG witha nominaivalueof CHF 11 per share are listedonSIX Swiss Exchange and have beentraded there since December4,1996.

Elmaregistered shares

Share capitai

Numberof registered sharesissued Average numberof registered shares Nominaivalue

Nominaisharecapitai

30.06.2015 31.12.2014

228.492 228.492

228.492 228.492inCHF11.00 11.00

inCHF1,000 2,5132.513

Stock marketprices

Highest inCHF397.75 403.00

LowestinCHF 343.25 367.75

Closing price inCHF359.75 384.50

Stock marketca pitalization

Balance sheetdatein CHF million 82 88in % ofequity 316 323

30.06.2015 30.06.2014

Key figures

Equti y per share inCHF113.89 102.58

Profit pershare inCHF3.52 3.11

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