\n<\/p>\n
HONG KONG SAR –\u00a0Media OutReach<\/a>\u00a0–\u00a013 January 2022 –\u00a0This news release is made by Johnson \u00a0<\/p>\n The Board \u00a0<\/p>\n The Group’s \u00a0<\/p>\n The Group’s \u00a0<\/p>\n The \u00a0<\/p>\n Sales of Automotive \u00a0<\/p>\n APG’s sales for the nine months ended 31 December 2021 were US$1,923 \u00a0<\/p>\n A significant part of this increase relates to the fact that in the \u00a0<\/p>\n APG’s outperformance reflects the increasing demand for the APG’s sales for the quarter ended 31 December 2021 decreased by US$78 \u00a0<\/p>\n When looked at on a regional basis, APG’s sales fared better than \u00a0<\/p>\n \u00a0<\/p>\n<\/td>\n Quarter ended Nine months ended Asia<\/p>\n<\/td>\n decrease 4%<\/p>\n<\/td>\n increase 3%<\/p>\n<\/td>\n<\/tr>\n Europe<\/p>\n<\/td>\n decrease 22%<\/p>\n<\/td>\n increase 9%<\/p>\n<\/td>\n<\/tr>\n Americas<\/p>\n<\/td>\n decrease 12%<\/p>\n<\/td>\n increase 11%<\/p>\n<\/td>\n<\/tr>\n Total<\/p>\n<\/td>\n decrease 12%<\/p>\n<\/td>\n increase 7%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/p>\n Sales of Industry Products Group (“IPG”)<\/b><\/p>\n \u00a0<\/p>\n IPG’s sales for the nine months ended 31 December 2021 were US$598 \u00a0<\/p>\n The changes to consumer behaviour that emerged during the pandemic, \u00a0<\/p>\n IPG also benefited from a rebound in sales to small and medium-sized \u00a0<\/p>\n IPG’s sales for the quarter ended 31 December 2021 increased by US$13 \u00a0<\/p>\n On a regional basis, IPG experienced the strongest growth in Europe and \u00a0<\/p>\n \u00a0<\/b><\/p>\n<\/td>\n Quarter ended Nine months ended Asia decrease 14%<\/p>\n<\/td>\n increase 3%<\/p>\n<\/td>\n<\/tr>\n Europe increase 36%<\/p>\n<\/td>\n increase 27%<\/p>\n<\/td>\n<\/tr>\n Americas increase 13%<\/p>\n<\/td>\n increase 19%<\/p>\n<\/td>\n<\/tr>\n Total increase 8%<\/p>\n<\/td>\n increase 15%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/p>\n Chairman’s Comments on Sales \u00a0<\/p>\n Concerning the Group’s sales performance and \u00a0<\/p>\n “However, the global supply disruptions and \u00a0<\/p>\n Cautionary \u00a0<\/p>\n Shareholders and potential investors in \u00a0<\/b><\/p>\n Shareholders
\nElectric Holdings Limited<\/a> (“Johnson Electric” or the “Company” and together
\nwith its subsidiaries, the “Group”) for the business operations and selected
\nunaudited financial information of the Group for the nine months and quarter
\nended 31 December 2021.<\/p>\n
\nof Directors (the “Board”) of the Company considers the publication of
\nquarterly sales performance updates to be consistent with international
\ncorporate disclosure best practice. The objective of this news release is to
\nprovide transparency and to ensure that investors and potential investors
\nreceive equal access to the same information at the same time.<\/p>\n
\nsales for the nine months ended 31 December 2021 were US$2,521 million compared
\nto US$2,242 million for the same period in 2020, an increase of 12%. Excluding
\ncurrency movements and an acquisition, sales increased by 9% to US$2,448
\nmillion. Foreign exchange rate movements had a positive effect of US$61 million
\non the Group’s sales during the period. This was mainly due to the stronger average
\nexchange rates for the Chinese Renminbi, the Canadian Dollar and the Euro
\nversus the US Dollar, comparing average exchange rates for the nine months
\nended 31 December 2021 to the same period last year. <\/p>\n
\nsales for the quarter ended 31 December 2021 were US$847 million compared to
\nUS$912 million for the same quarter in 2020, a decrease of 7%. Excluding
\ncurrency effects and an acquisition, sales for the quarter ended 31 December
\n2021 decreased by US$71 million or 8%. <\/p>\n
\nacquisition of E. Zimmermann GmbH (“Zimmermann”), a specialist automotive
\nmachining business based in Germany, on 31 May 2021 added US$12 million to
\nsales for the nine months ended 31 December 2021 and US$5 million to sales for
\nthe quarter ended 31 December 2021.<\/p>\n
\nProducts Group (“APG”)<\/p>\n
\nmillion, an increase of US$196 million or 11% compared to the same period in
\n2020. Excluding the acquisition of Zimmermann and currency effects, APG’s sales
\nincreased by US$127 million or 7% for the nine months. <\/p>\n
\nperiod from late March to May 2020, much of Johnson Electric’s and its
\ncustomers’ operations in Europe and the Americas were effectively shut down due
\nto the COVID-19 pandemic. Although direct comparisons with the same period in
\nthe prior year are therefore somewhat difficult, APG’s organic sales growth of
\n7% represented a substantial outperformance, when compared to the decrease in
\nglobal auto industry production of approximately 3% during the nine months from
\nApril to December 2021. The automotive sector has been severely disrupted by
\nseveral supply chain bottlenecks over the period under review. Semiconductor
\nand raw material shortages have caused major automotive OEMs to make frequent
\nchanges to production schedules, suspend production of selected vehicle models
\nand temporarily close some of their factories entirely. <\/p>\n
\nelectrification of critical automotive functions to support the growing number
\nof battery-electric and hybrid vehicles, as well as the imperatives to reduce
\nvehicle weight and to improve safety, reliability and comfort. Sales increased
\nacross most of APG’s product segments, with significant increases experienced
\nin:<\/p>\n\n
\ndoor-lock and other power closure systems<\/li>\n
\nelectric water pump, cooling fan module, HVAC components, integrated thermal
\nmanagement and other electrified components for thermal management <\/li>\n
\nparts for fuel cell applications<\/li>\n
\nmillion or 11% compared to the same quarter in 2020. Excluding the acquisition
\nof Zimmermann and currency effects, APG’s sales decreased by US$86 million or
\n12% in the quarter. In comparison, global auto industry production volumes
\ndecreased by approximately 17% over the same period. The industry’s production
\nand sales activities in the quarter continued to be hampered by the supply
\nchain bottlenecks mentioned previously. It should also be noted that APG’s
\nsales in the same quarter in the prior year rebounded to remarkably high levels
\nfollowing the resumption of OEM customer production in Europe and the Americas
\nafter earlier COVID-19 related shut-downs. <\/p>\n
\nautomotive industry production volumes in all regions in the nine months as
\nwell as the quarter ended 31 December 2021. The sales changes for APG by
\nregion, excluding currency effects and the acquisition of Zimmermann, were as
\nfollows:<\/p>\n\n\n
\n \n \n
31 December 2021<\/p>\n<\/td>\n\n
31 December 2021<\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\nmillion, an increase of US$83 million or 16% compared to the same period in
\n2020. Excluding currency effects, IPG’s sales increased by US$79 million or 15%
\nfor the nine months.<\/p>\n
\nincluding the rise in demand for “home-centric” products, remained a strong
\ngrowth driver for many of the product applications served by IPG.\u00a0 The division achieved significant growth in
\nthe lawn and garden, beverage, ventilation, heating, window automation and
\nwhite goods segments due to a combination of program launches and new business
\nwins, enlarged market share and increased market demand in the nine months
\nended 31 December 2021. This strong performance was achieved despite the
\ndisruptive impact of supply chain constraints, including shortages of
\nsemiconductors, and other materials and components, as well as disruptions to
\nshipping schedules that held back production in some of IPG’s end-markets.<\/p>\n
\nenterprises, and to distributors, especially in Europe and the Americas. In the
\nsame period of the prior year, these customers had been severely impacted by
\nthe pandemic. Similarly, sales of products for commercial and industrial
\napplications increased for the nine months ended 31 December 2021 compared to
\nthe reduced business levels experienced in the same period of the prior year.<\/p>\n
\nmillion or 7% compared to the same quarter in 2020. Excluding currency effects,
\nIPG’s sales increased by US$14 million or 8% in the quarter. <\/p>\n
\nthe Americas as sales in the same period in the prior year were constrained by
\nthe impact of the COVID-19 pandemic. In Asia, sales growth in the nine months
\nended 31 December 2021 was more muted, as China’s industrial sector had already
\nrecovered before April 2020 and sales in the prior year’s quarter ended 31
\nDecember 2020 were especially high. The sales changes for IPG by region,
\nexcluding currency effects, were as follows:<\/p>\n\n\n
\n \n \n
31 December 2021\n
31 December 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\nPerformance and Outlook<\/b><\/p>\n
\noutlook for the current financial year, the Chairman and Chief Executive, Dr.
\nPatrick Shui-Chung Wang, said, “Johnson Electric has achieved a solid sales
\nperformance over the past nine months as the global economy remains on a
\nrecovery path from the crisis brought on by the COVID-19 pandemic.\u00a0 We continue to win new business awards in
\nboth our Automotive and Industry divisions based on our
\ncompelling ability to serve global customers in every major geographic
\nmarket and on a portfolio of innovative motion technology solutions that
\ncontinue to generate strong customer demand.”<\/p>\n
\ninflationary forces that depressed profitability in the first half of the year
\nhave persisted through the third quarter of the financial year and represent
\nsignificant on-going headwinds for the business.\u00a0 Management is engaged in a number of
\ninitiatives to mitigate these effects but, in the near-term, the above-mentioned
\ninflationary forces are exerting significant pressure on operating margins.”<\/p>\n
\nStatement<\/b><\/p>\n
\nthe Company are reminded that the information provided in this news release,
\nincluding information related to the expected outlook for the full year, is
\nbased on the Group’s unaudited internal records and management accounts. This
\ninformation has not been reviewed or audited by the Company’s auditors.<\/p>\n
\nand potential investors should exercise caution when dealing or investing in the
\nshares of the Company.<\/b><\/p>\n