Highlights of FY24/25 Half-Year Results

• Group sales US$1,854 million – down 4% compared to first half of the prior financial year
• Gross profit US$438 million or 23.6% of sales (compared to US$430 million or 22.2% of sales in the first half of the prior financial year)
• Adjusted EBITA US$177 million or 9.5% of sales (compared to US$180 million or 9.3% of sales in the first half of the prior financial year)
• Net profit attributable to shareholders increased by 8% to US$130 million or 13.92 US cents per share on a fully diluted basis
• Underlying net profit, excluding the net impact of unrealized gains or losses relating to exchange rate movements and restructuring costs, increased by 3% to US$133 million
• Free cash flow from operations US$144 million (compared to US$208 million in the first half of the prior financial year)
• Total debt to capital ratio of 12% and cash reserves of US$688 million as of 30 September 2024
• Interim dividend 17 HK cents per share (2.18 US cents per share)

HONG KONG SAR - Media OutReach Newswire - 20 November 2024 - Johnson Electric Holdings Limited ("Johnson Electric"), a global leader in electric motors and motion subsystems, today announced its results for the six months ended 30 September 2024. Total group sales for the first half of the 2024/25 financial year were US$1,854 million, a decrease of 4% compared to the first half of the prior financial year. Net profit attributable to shareholders increased by 8% to US$130 million or 13.92 US cents per share on a fully diluted basis. Underlying net profit increased by 3% to US$133 million. Automotive Products Group The Automotive Products Group ("APG"), which accounted for 84% of total Group sales in the period under review, reported a 3% decline in sales on a constant currency basis – which was in line with the overall reduction in global light vehicle production volumes. On a regional basis, APG's constant currency sales were lower by 1% in Asia, 3% in Europe, and 5% in the Americas. All major product and subsystem categories felt the effects of weaker OEM demand as the industry worked to reduce excess inventory levels that accumulated during 2023's post-Covid rebound in production. At the same time, consumer appetite to purchase new cars is being negatively impacted in China by concerns over declining property prices and, in the case of North America and Europe, by high vehicle prices and high interest rates. Current macro-economic conditions notwithstanding, the automotive industry's structural evolution is continuing at a rapid pace. Most notably, China has emerged as a transformative force in the sector through its position as both the world's largest market and the most dynamic in terms of its adoption of electric propulsion technology. Sales of all-electric and plug-in hybrid models recently exceeded the rate of one million vehicles per month and these now account for close to half of all passenger vehicles sold. Furthermore, in less than five years, PRC OEMs have become the domestic market leaders by offering high-quality, cost-competitive new energy vehicles that feature integrated software and advanced infotainment systems. APG's strategy of developing a portfolio of motion subsystems and products that function as key technology enablers of electrification has meant that we have continued to grow our sales across all of the major PRC OEMs. This includes the supply of electric water pumps, coolant valves, and integrated thermal management systems that optimize the performance of battery-powered vehicles, as well as a wide array of motion products that improve the comfort and safety of passengers. The automotive markets in the major western economies are experiencing a period of adjustment which, for a number of reasons, is leading to greater volatility and less visibility on production volumes. In the face of changing consumer preferences, increasing regulatory pressures, and the imperative to reduce production costs, OEMs have been shifting production to different plants in different regions, exiting unprofitable models, and delaying new model launches. The pace of adoption of electric vehicles in some countries has also slowed as the market seeks to progress beyond early adopters to mass market acceptance at a time when consumers remain concerned about high vehicle prices and financing costs, along with persistent anxieties about driving range, charging infrastructure and resale values. Indicative of these concerns, sales of hybrid vehicles in Europe and North America have picked up strength as buyers view these vehicles as an affordable compromise between all-combustion and all-electric. Although the varying speed and dimensions of the structural changes taking place in the automotive industry creates near-term operational challenges for component suppliers, APG remains particularly well positioned to continue to gain market share. We possess a unique...