Johnson Electric reports results for the half year ended 30 September 2021

HONG KONG - Johnson Electric Holdings Limited ('Johnson Electric'), a global leader in electric motors and motion subsystems, announced its results for the six months ended 30 September 2021.

Total Group sales for the first half of FY21/22 totalled US$1,674 million, an increase of 26% over the first half of the prior year. Excluding the effects of foreign currency movements and an acquisition, sales increased by 21%. Net profit attributable to shareholders decreased by 8% to US$93 million or 10.36 US cents per share on a fully diluted basis. Underlying net profit, after adjusting for the effects of a number of non-cash items and restructuring costs, decreased by 2% to US$96 million.

Automotive Products Group

The Automotive Products Group ('APG'), which accounted for 76% of total Group sales, reported a 21% increase in sales on a constant currency basis and excluding an acquisition. A significant part of this increase relates to the fact that in the period from late March to May 2020, much of Johnson Electric's automotive component operations in Europe and the Americas were effectively shut down due to the pandemic.

Although direct comparisons with the same period in the prior year are therefore somewhat misleading, APG achieved sales growth well above global auto industry production growth of approximately 6% during the six months from April to September 2021. The drivers of this sustained outperformance are the division's focus on innovative technology solutions that enable electrification, reduce emissions, improve fuel economy and heighten end-user comfort and safety

APG's sales performance on a regional level reflected both variations in the progression of the COVID-19 pandemic and the disruptive impact of several supply chain bottlenecks that have hit the global automotive sector over the period under review.

In Europe and the Americas, APG's sales in constant currency and excluding an acquisition increased by 34% and 29%, respectively. As previously noted, the majority of this growth was achieved as OEM assembly plants in these regions were no longer closed for pandemic containment reasons and end-market consumer demand for passenger vehicles was exceptionally strong. However, throughout the period under review, the automotive industry struggled to cope with a prolonged shortage of semiconductors and other components. This has required all major auto OEMs to make frequent changes to production schedules, suspend production of selected vehicle models and temporarily close some factories entirely. In Europe, these disruptions to supply resulted in the lowest number of new passenger vehicle registrations in the month of September since 1995.

APG's sales in Asia increased by 8% in constant currency terms. Light vehicle production volumes in the region were flat compared to the same period in the prior year, with China's production volumes declining by 11%. China's economy recovered quicker from the impact of the pandemic in 2020 and hence the weakness of its automotive industry compared to the prior year's April to September period was largely a reflection of the global microchip shortage and a subdued domestic consumer economy. Demand and production activity in Southeast Asian markets were also negatively impacted by a resurgence in COVID-19 in several countries.

About Johnson Electric Group

The Johnson Electric Group is a global leader in electric motors, actuators, motion subsystems and related electro-mechanical components. It serves a broad range of industries including Automotive, Smart Metering, Medical Devices, Business Equipment, Home Automation, Ventilation, White Goods, Power Tools, and Lawn & Garden Equipment. The Group is headquartered in Hong Kong and employs over 35,000 individuals in 22 countries worldwide. Johnson Electric Holdings Limited is listed on The Stock Exchange of Hong Kong Limited (Stock Code: 179). For further information, please visit: www.johnsonelectric.com.

Forward Looking Statements

This news release contains certain forward looking statements with respect to the financial condition, results of operations and business of Johnson Electric and certain plans and objectives of the management of Johnson Electric.

Words such as 'outlook', 'expects', 'anticipates', 'intends', 'plans', 'believe', 'estimates', 'projects', variations of such words and similar expressions are intended to identify such forward looking statements. Such forward looking statements involve known and unknown risk, uncertainties and other factors which may cause the actual results or performance of Johnson Electric to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding Johnson Electric's present and future business strategies and the political and economic environment in which Johnson Electric will operate in the future.

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