Highlights of FY2018/19Results

• Forthe financial year ended 31 March 2019, total sales amounted to US$3,280million -- an increase of 1% compared to the prior financial year. Excluding theeffects of acquisition and foreign currency movements, underlying salesincreased by 2%
• EBITDAtotalled US$549 million -- an increase of 6%
• Operatingprofits increased by 3% to US$344 million or 10.5% of sales (compared to 10.4%of sales in FY17/18)  
• Netprofit attributable to shareholders increased by 7% to US$281 million (or 31.60US cents per share on a fully diluted basis). Underlying net profit, whichexcludes the net impact of non-cash foreign currency-related gains/losses and aprior year non-cash gain on an acquisition, decreased by 10% to US$243 million
• Capitalexpenditure totalled US$391 million -- up 28%, reflecting major investments inadvanced automation, technology and manufacturing footprint expansion
• Asof 31 March 2019, cash reserves amounted to US$340 million and the Group'sratio of total debt to EBITDA was 1.2 times

HONGKONG,CHINA - Media OutReach - 16th May 2019 - Johnson Electric Holdings Limited ("Johnson Electric"), aglobal leader in electric motors and motion subsystems, today announced itsresults for the twelve months ended 31 March 2019.

Groupsales for the 2018/19 financial year totalled US$ 3,280million -- an increase of 1% compared to the prior financial year.   Excluding the effects of acquisition andforeign currency movements, underlying sales increased by 2% . Netprofit attributable to shareholders rose 7% to US$281 million.   Underlying net profit, which excludes the netimpact of non-cash foreign currency-related gains/losses and a prior yearnon-cash gain on an acquisition, decreased by 10% to US$243 million.

Sales Performance

Thesoftening in the global economy in the second half of the financial year, alongwith industry-specific factors, represented a major headwind for the Group withthe result that total sales amounted to US$3,280 million, an increase of 1%over the prior financial year.

Afterseveral years of strong growth momentum, the global automotive industry stalledin 2018 as US car sales peaked, Europe was held back by new emissions testingrules and China sales declined for the first time in two decades.

TheAutomotive Products Group ("APG"), Johnson Electric's largest operatingdivision, achieved sales of US$2,530 million. Excluding acquisition andcurrency effects, APG's sales increased by 2 %.   On a regional basis, the strongestperformance was in the Americas where APG increased sales by almost 8% inconstant currency terms against a market where light vehicle production volumeswere flat.   In Asia, sales grew by justover 2% in constant currency terms compared to a decline in regional industryproduction of almost 3%.   China's carindustry experienced a particularly sharp contraction in production volumes ofover 6% as a result of the expiration of favourable tax purchase policies, aswell as the overall slowdown in consumption and economic activity.   APG performed less well in Europe with salesdeclining approximately 3% in constant currency terms compared to a decline of2.6% in regional production volumes.   European passenger car production was held back by the implementation ofthe "worldwide light vehicles test procedure", or WLTP -- designed to offer morerealistic fuel economy results -- which caused OEM production bottlenecks andnegatively impacted car sales in the second half of the year.

The Industry Products Group("IPG") reported a 1 % increase in sales toUS$750 million -- representing 23% of total Group sales.   Generally weaker macro-economic conditionsand the US-China tariff dispute put a dampener on demand across many of theGroup's end-market segments.   Nonetheless, through a combination of market share gains and newcustomer launches, IPG was able to grow sales in the Americas by over 6% inconstant currency terms.    Sales toEuropean customers were essentially flat compared to the prior year. In Asia,sales were down just under 2% in constant currency terms due to the combinationto uncertainties over US-China trade relations, slower economic growth in Chinaand customer-specific launch delays.

Pressureon Underlying Profit

Gross profit decreased by 5%to US$751 million -- which as a percentage of sales represented a reduction from24.4% to 22.9%.   This disappointingperformance was due to the combination of weaker sales volumes in a majority ofAPG's business units (particularly in the second half when sales declined onboth a sequential and year-on-year basis) and the negative impact of pricingpressure and higher raw material, labour and depreciation expenses.    

The Group's operating profitbenefited from a substantial increase in " OtherIncome and expenses".   This was primarilydue to the impact of a mark-to-market gain on structured foreign exchangecontracts that form part of Johnson Electric's long-term operational hedgingactivities and net changes in the revaluation of monetary assets andliabilities and other foreign currency hedging contracts.   As a result of these and other non-cashitems, operating profits increased by 3 % to US$344 millionor 10.5 %of sales.

A lower effective tax ratealso boosted the bottom line, with net profit attributable to shareholderstotalling US$281 million -- an increase of 7% compared to the prior year.

Dividends

In view of the decrease inunderlying operating income and significant ongoing capital investments instrengthening the business, the Board recommends maintaining the final dividendof 34 HK cents per share, which together with the interim dividend of 17 HKcents per share, represents a total dividend of 51 HK cents per share.

Chairman'sComments Outlook

Commentingon the outlook for the business, Dr. Patrick Wang, Chairman and ChiefExecutive, said, " Demand levels in several ofour major markets have remained comparatively weak in recent months -- withChina's automotive sector in particular continuing to contract.   Consequently, the prospect of the US-Chinatrade dispute escalating represents a significant risk as to whether tradingconditions are able to improve in the near term."

Dr.Wang further commented, "Approximately 5% ofthe Group's total annual sales volume is currently subject to Section 301tariffs that have been imposed on goods imported into the USA from China.   While this exposure is not especially largein the context of Johnson Electric's diversified global sales base, if the USAand China fail to reach a negotiated trade agreement in the coming weeks theeffects will be disruptive to our global supply chain and could result inhigher cost for our business, our customers and consumers."

"Notwithstanding thedifficult and highly unpredictable current operating environment, I remainoptimistic about Johnson Electric's competitive position and growth trajectoryin the medium to longer term.   Ourproduct line is aligned with the market's need for mission-critical solutionsto electrification, emissions, cooling, weight reduction and energy savingproblems -- as exemplified by a strong pipeline of new business launchesscheduled for the current financial year.   Our global manufacturing footprint provides us with the means to be bothresponsive to customers and mitigate the negative impact of foreign currency volatilityand import tariffs.   Further, we benefitsignificantly from a diverse, high-quality customer base balanced evenly acrossthe world's three major regional economies."

JOHNSONELECTRIC HOLDINGS LIMITED

CONSOLIDATED INCOME STATEMENT

Note to Editors andSecurities Analysts: The full text of the FY2018/19 Preliminary Resultsannouncement, including additional financial information, is available throughthe Investor Relations section of company's website at www.johnsonelectric.com

About Johnson Electric Group

TheJohnson Electric Group is a global leader in electric motors, actuators, motionsubsystems and related electro-mechanical components. It serves a broad rangeof industries including Automotive, Smart Metering, Medical Devices, Business Equipment,Home Automation, Ventilation, White Goods, Power Tools, and Lawn & GardenEquipment. The Group is headquartered in Hong Kong and employs over 38,000individuals in 23 countries worldwide.   Johnson Electric Holdings Limited is listed on The Stock Exchange ofHong Kong Limited (Stock Code: 179). For further information, please visit: www.johnsonelectric.com .

ForwardLooking Statements

This news release contains certainforward looking statements with respect to the financial condition, results ofoperations and business of Johnson Electric and certain plans and objectives ofthe 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 suchforward-looking statements.   Such forwardlooking statements involve known and unknown risk, uncertainties and otherfactors which may cause the actual results or performance of Johnson Electricto be materially different from any future results or performance expressed orimplied by such forward looking statements.   Such forward looking statements are based on numerous assumptionsregarding Johnson Electric's present and future business strategies and thepolitical and economic environment in which Johnson Electric will operate inthe future.