Johnson Electric reports Business and Unaudited Financial Information for the First Quarter of Financial Year 2021/22

HONG KONG SAR – Media OutReach – 13 July 2021 – This news release is made by Johnson
Electric Holdings Limited (“Johnson Electric” or the “Company” and together
with its subsidiaries, the “Group”) for the business operations and selected
unaudited financial information of the Group for the three months ended 30 June
2021.

 

The Board
of Directors of the Company considers the publication of quarterly sales
performance updates to be consistent with international corporate disclosure
best practice. The objective of this announcement is to provide transparency
and to ensure that investors and potential investors receive equal access to
the same information at the same time.

 

The Group’s
sales for the quarter ended 30 June 2021 were US$877 million compared to US$517
million for the same quarter in 2020, an increase of 70%. It should be noted
that sales in the same quarter of the prior financial year were significantly
impacted by the COVID-19 pandemic.

 

Excluding
currency movements and acquisitions, sales increased by 61% to US$831 million.
Foreign exchange rate movements had a positive effect of US$45 million on the
Group’s sales for the quarter. This was mainly due to the impact of stronger
average exchange rates for the Euro, the Chinese Renminbi and the Canadian
Dollar against the US Dollar, compared to the same quarter in 2020.

 

The
acquisition of E. Zimmermann GmbH (“Zimmermann”), a specialist automotive
machining business based in Germany, on 31 May 2021 added US$1 million to sales
for the quarter ended 30 June 2021.

Sales of Automotive
Products Group (“APG”)

 

APG’s sales
for the quarter ended 30 June 2021 increased by US$313 million or 87% compared
to the same quarter in 2020. Excluding the acquisition of Zimmermann and
currency effects, APG’s sales increased by US$270 million or 75% in the
quarter, with the following changes by region:

• Asia
  increased 21%
• Europe
  increased 128%
• Americas
  increased 157%

A large
part of this increase was due to the rebound in light vehicle production
volumes especially in Europe and the Americas where sales were significantly
lower in the same quarter in 2020, when many customer plants were shut down due
to COVID-19. Nonetheless, APG’s sales growth in the period exceeded the
increase in production volumes for the automotive industry overall in all
regions. Sales benefitted from new and recent programmes for window-lift,
sunroof and power-lift gate, braking, seat and thermal management applications.
APG also experienced increased customer demand for its products for heating,
ventilation and air-conditioning, lighting, steering and fuel cell
applications.

 

Sales of Industry
Products Group (“IPG”)

 

IPG’s sales
for the quarter ended 30 June 2021 increased by US$47 million or 30% compared
to the same quarter in 2020. Excluding currency effects, IPG’s sales increased
by US$43 million or 27% in the quarter, with the following changes by region:

• Asia
  increased 33%
• Europe
  increased 24%
• Americas
  increased 23%

Sales in
the lawn and garden, white goods, window automation and other home-centric
segments demonstrated particularly strong growth due to a combination of recent
programme launches, new business wins and increased market demand. Sales in the
medical segment increased, as automated surgical tools took some market share
from manual medical devices.

 

Additionally,
it should be noted that sales to some of IPG’s smaller customers and
distributors were adversely affected by the COVID-19 pandemic in the same quarter
in 2020.

 

Chairman’s Comments on First
Quarter’s Sales Performance and Outlook

 

Concerning
the first quarter’s sales performance and outlook for the current financial
year, the Chairman and Chief Executive, Dr. Patrick Shui-Chung Wang, said,
“Johnson Electric’s positive business trajectory in the second half of the past
financial year continued in the first quarter of FY2021/22. This was achieved
despite ongoing global shortages of semiconductors that, combined with other
supply chain bottlenecks, are hampering sales fulfilment for some of our
business units. And, as noted in previous investor guidance, the sharp increase
in commodity prices that accompanied the global economic rebound is also
exerting pressure on gross margins in the shorter term.”

 

“Nonetheless,
we continue to experience strong customer demand in all regions for our portfolio
of innovative motion products and technology solutions that are designed to
address the key growth drivers in the end-markets that we serve. In the
automotive sector, these include electrification, emissions reduction, fuel
economy, higher safety and greater comfort. In industrial and consumer markets,
the focus is on energy efficiency, increased controllability and cost-effective
solutions that improve health and well-being. Across each of these areas, I am
confident that Johnson Electric is exceptionally well positioned to compete and
win. In summary, the Group remains firmly on track to deliver healthy sales
growth in the current financial year.”

 

Cautionary
Statement

 

Shareholders
and potential investors in the Company are reminded that the information
provided in this news release,
including information related to the expected outlook for the full year, is
based on the Group’s unaudited internal records and management accounts. This
information has not been reviewed or audited by the Company’s auditors.

 

Shareholders
and potential investors should exercise caution when dealing or investing in
the shares of the Company.