Quarterly Report • Nov 6, 2014
Quarterly Report
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Interim report Q3 2014
| 3rd quarter | 9 months | |||||
|---|---|---|---|---|---|---|
| in million Euro or percent unless otherwise indicated |
7/1 – 9/30/2014 |
7/1 – 9/30/20131 |
Change | 1/1 – 9/30/2014 |
1/1 – 9/30/20131 |
Change |
| Sales | 54.7 | 46.2 | 18.5% | 156.0 | 136.4 | 14.4% |
| Semiconductor | 49.8 | 42.5 | 17.0% | 142.5 | 124.9 | 14.0% |
| Micromechanics | 5.0 | 3.6 | 36.3% | 13.6 | 11.5 | 18.2% |
| Gross profit | 25.0 | 19.9 | 25.9% | 67.1 | 55.1 | 21.9% |
| in percent of sales | 45.7% | 43.1% | 43.0% | 40.4% | ||
| R&D expenses | – 10.2 | –7.8 | 31.8% | –27.0 | –25.6 | 5.5% |
| in percent of sales | –18.7% | –16.8% | –17.3% | – 18.7% | ||
| Operating income before other operating expenses (–)/income | 5.8 | 3.7 | 56.1% | 13.0 | 3.6 | >100.0% |
| in percent of sales | 10.6% | 8.0% | 8.3% | 2.7% | ||
| Exchange rate gains/losses (–) | 1.7 | –0.2 | n/a | 1.5 | –0.2 | n/a |
| Other operating expenses (–)/income | –1.4 | 0.2 | n/a | –0.1 | 2.1 | n/a |
| EBIT | 6.1 | 3.7 | 63.7% | 14.4 | 5.5 | >100.0% |
| in percent of sales | 11.1% | 8.0% | 9.2% | 4.1% | ||
| Consolidated net income after non-controlling interests | 3.9 | 3.1 | 28.8% | 12.0 | 4.5 | >100.0% |
| in percent of sales | 7.2% | 6.6% | 7.7% | 3.3% | ||
| Basic earnings per share in Euro | 0.20 | 0.16 | 28.2% | 0.62 | 0.23 | >100.0% |
| Cash flow from operating activities | 14.1 | 7.4 | 90.7% | 33.4 | 14.2 | >100.0% |
| Capital expenditures for intangible assets and property, plant and equipment | 7.4 | 4.5 | 64.5% | 25.0 | 13.1 | 90.7% |
| in percent of sales | 13.4% | 9.7% | 16.0% | 9.6% | ||
| Free cash flow2 | 6.6 | 2.8 | >100.0% | 6.7 | –24.2 | n/a |
| Adjusted free cash flow3 | 6.8 | 2.9 | >100.0% | 8.4 | 2.7 | >100.0% |
| in million Euro or percent unless otherwise indicated |
9/30/2014 | 12/31/2013 | Change | |||
| Equity | 203.4 | 192.7 | 5.5% | |||
| in percent of total assets | 70.0% | 71.1% |
1 Adjustment of prior-year amounts; please refer to note 1 in the condensed notes to the consolidated financial statements
2 Cash flow from operating activities less cash flow from investing activities
3 Cash flow from operating activities less capital expenditures for intangible assets and property, plant and equipment, less payments for investments, plus disposal of investments
Employees (reporting date) 1,119 1,060 5.6%
Due to calculation processes, tables and references may produce rounding differences from the mathematically exact values (monetary units, percentage statements, etc.).
Elmos Semiconductor AG generated sales of 156.0 million Euro in the first nine months of 2014 (9M 2013: 136.4 million Euro). Sales thus increased significantly compared to the prioryear period (+14.4%). With respect to the third quarter, sales grew even by 18.5% to 54.7 million Euro (Q3 2013: 46.2 million Euro). This positive performance is driven by the increase in new car registrations in Europe, China and the U.S.A. as well as by product ramp-ups and a deeper market penetration with existing products.
The sales performance in Asia continues to be highly disproportionate. With a gain of 28.2% in the first nine months of 2014, sales generated in the Asian market reached 39.8 million Euro (9M 2013: 31.0 million Euro). While Germany shows a continuation of the positive trend (+5.4 million Euro or 11.3%), sales in the other EU countries went down by 0.7 million Euro or 2.0%. Sales generated in the U.S.A. was up 54.6% to 15.7 million Euro (9M 2013: 10.2 million Euro). Changes in the logistics management implemented by individual customers are the main reason for this growth.
The semiconductor segment gained 14.0% on the prior-year period and came to 142.5 million Euro (9M 2013: 124.9 million Euro). The ramp-ups of the micromechanics segment reflect in the strong growth in sales of 18.2% to 13.6 million Euro (9M 2013: 11.5 million Euro). In the third quarter of 2014, sales in this segment grew even by 36.3% compared to the prior-year period, reaching 5.0 million Euro (Q3 2013: 3.6 million Euro).
The ratio of order backlog to sales generated in the semiconductor segment, the so-called book-to-bill, was above one at the end of the first nine months of 2014.
| Third-party sales | 1/1 – 9/30/2014 thousand Euro |
in percent of sales |
1/1 – 9/30/2013 thousand Euro |
in percent of sales |
Change |
|---|---|---|---|---|---|
| Germany | 53,374 | 34.2% | 47,960 | 35.2% | 11.3% |
| Other EU countries | 37,102 | 23.8% | 37,848 | 27.7% | –2.0% |
| U.S.A. | 15,729 | 10.1% | 10,177 | 7.5% | 54.6% |
| Asia/Pacific | 39,759 | 25.5% | 31,013 | 22.7% | 28.2% |
| Other countries | 10,063 | 6.4% | 9,390 | 6.9% | 7.2% |
| Consolidated sales | 156,027 | 100.0% | 136,388 | 100.0% | 14.4% |
Compared to the prior-year period, the cost of sales rose by 9.3% to 88.9 million Euro in the nine months of 2014, a disproportionately low increase in relation to sales (9M 2013: 81.3 million Euro). Also as a consequence of the successively improved production efficiency due to the ongoing conversion of production from 6-inch to 8-inch, the gross profit went up. The gross margin grew accordingly to 43.0% (9M 2013: 40.4%).
Research and development expenses of the first nine months went up from 25.6 million Euro in the prior-year period to 27.0 million Euro in the reporting period. R&D expenses of the third quarter 2014 were affected by special depreciation of intangible assets in the amount of 1.8 million Euro. Due to increased sales, R&D expenses went down in relation to sales from 18.7% in the first nine months of 2013 to 17.3% in the reporting period. Distribution expenses went up 4.8% to 14.3 million Euro in the first nine months of 2014 (9M 2013: 13.6 million Euro). Administrative expenses also went up disproportionately to sales by 5.1% to 12.9 million Euro (9M 2013: 12.2 million Euro). On the whole, operating expenses went down considerably in comparison with the prioryear period from 37.7% to 34.7% of sales.
As a result of the sales increase and the gain in effectiveness regarding cost of sales and operating expenses, the operating income before other operating expenses/income went up significantly from 3.6 million Euro in the first nine months of 2013 to 13.0 million Euro in the reporting period. The margin increased accordingly from 2.7% to 8.3%.
While exchange rate gains in the amount of 1.5 million Euro turned out much higher than in the corresponding prior-year period (9M 2013: exchange rate losses in the amount of 0.2 million Euro), essentially due to income from exchange rate hedges recognized in profit or loss, the item of other operating income/expenses, with a net expense of 0.1 million Euro, was much lower than over the first nine months of 2013 (net income of 2.1 million Euro). Earnings before interest and taxes (EBIT) thus went up to a similar extent as the operating income before other operating expenses/income did, reaching 14.4 million Euro in the first nine months of 2014 (9M 2013: 5.5 million Euro). The EBIT margin was 9.2% as compared to 4.1% in the corresponding prior-year period.
Due to the positive contribution of the accounting treatment of deferred tax income in connection with tax-deductible losses in the first quarter of 2014, the tax rate was relatively low for the first nine months of 2014 and the consolidated net income attributable to owners of the parent amounted to 12.0 million Euro (9M 2013: 4.5 million Euro). This equals basic earnings per share (EPS) of 0.62 Euro (9M 2013: 0.23 Euro).
The operating cash flow was increased substantially, coming to 33.4 million Euro in the reporting period as compared to 14.2 million Euro in the prior-year period. Apart from the higher consolidated net income (+7.6 million Euro), another main reason for the rising cash flow from operating activities is the reduction of trade receivables. The cutback by 2.9 million Euro in the reporting period is contrasted by an increase in trade receivables in the prior-year period by 4.0 million Euro.
Capital expenditures for intangible assets and property, plant and equipment were significantly higher in the first nine months of 2014 due to the continued conversion from 6-inch to 8-inch production and the expansion of testing capacity, reaching 25.0 million Euro (9M 2013: 13.1 million Euro). Despite the high amount of capital expenditures, the adjusted free cash flow (cash flow from operating activities less capital expenditures for intangible assets and property, plant and equipment, less payments for investments, plus disposal of investments) was increased. In the reporting period Elmos generated a positive adjusted free cash flow of 8.4 million Euro (9M 2013: 2.7 million Euro).
Cash and cash equivalents plus fungible securities amounted to 84.2 million Euro as of September 30, 2014 (December 31, 2013: 77.1 million Euro). Net cash was up due to the positive free cash flow – despite the payment of a dividend totaling 4.8 million Euro – and reached 46.3 million Euro as of September 30, 2014 (December 31, 2013: 39.3 million Euro). The equity ratio remained stable at 70.0% as of September 30, 2014 (December 31, 2013: 71.1%).
1
The three largest car markets Western Europe, U.S.A. and China continued their course for growth over the first nine months of 2014. Western Europe's new registrations gained close to 6% to about 9.6 million automobiles, according to the VDA, Germany's Association of the Automotive Industry. The highest growth rates were recorded by Spain (+17%) and Great Britain (+9%). Increases achieved in the other relevant markets turned out much lower: Italy (+4%), Germany (+3%), and France (+2%).
The U.S. market for light vehicles (passenger cars and light trucks) gained more than 5% in the reporting period to altogether 12.4 million vehicles. This growth is driven primarily by the category of light trucks (+17%); the passenger car market grew merely by 1%.
The Chinese passenger car market reached a volume of close to 13.1 million cars in the first nine months of 2014, thus recording growth of almost 13% over the corresponding 2013 period of comparison.
In Japan the demand for passenger cars went up 6% to 3.7 million vehicles. However, the sales tax increase of April this year has negatively affected the current passenger car market. In September 2014 new registrations were down by more than 3%.
The Elmos management explained the annual results 2013 within the framework of the annual press conference and the analysts' conference held on March 20, 2014. The CEO also informed about the Company's positive performance by addressing the Annual General Meeting on May 13, 2014. The shareholders passed the proposal for a dividend of 0.25 Euro per share with a large majority. Apart from the dividend payment, the other resolutions on the agenda were also decided on with significant majorities of the votes.
Nicolaus Graf von Luckner, CFO of Elmos, retired as of June 30, 2014. His successor Dr. Arne Schneider assumed his responsibilities effective July 1, 2014. Dr. Schneider has been with Elmos Semiconductor AG since 2011 and used to be in charge of Corporate Development.
1,135,789 Elmos shares were reallocated among institutional investors, thus compensating previous rights held by former Elmos partners entirely. Weyer Beteiligungsgesellschaft mbH and ZOE VVG GmbH, companies owned by the founders of Elmos and today's Supervisory Board members, Dr. Klaus Weyer and Prof. Dr. Günter Zimmer, reallocated the Elmos stock to institutional investors off-market by way of accelerated bookbuilding on June 26, 2014, acting as trustees for former Elmos partner BMW INTEC Beteiligungs GmbH. Weyer Beteiligungsgesellschaft mbH compensated another portion of those rights out of the company's own pocket, thus increasing its economic share in Elmos Semiconductor AG.
Elmos presented its products at the world's leading trade shows. In the first nine months of 2014, Elmos showcased the product lines at "embedded world 2014" in Nuremberg, "electronica China" in Shanghai, and "Light+Building" in Frankfurt/Main, receiving highly positive customer feedback.
Elmos subsidiary SMI (Silicon Microstructures, Inc.) has developed a new MEMS low-pressure sensor and transferred it to series production. The sensor is characterized by high precision and stability. Elmos also pushed the marketing of an LED controller family and a USB power supply for use in automobiles. Furthermore, Elmos introduced a number of products for "smart home solutions", including motion and smoke detectors. Stepper, DC and BLDC drivers were presented as well. As a new distributor of Elmos products we managed to enlist Silica, a subsidiary of Avnet, Inc.
Effective April 1, 2014 Elmos increased its shares in the company DMOS in Dresden from previously 20% to 74.8%, resulting in the subsidiary's full consolidation as of that date.
Based on successes in winning new projects, Elmos founded a subsidiary in Tokyo/Japan for distribution and application support in mid-2014.
In early September Elmos presented the new corporate video "Magic Moments" to the public. The video is available at www.elmos.com.
The Elmos Group's workforce came to 1,119 employees as of September 30, 2014. Compared with December 31, 2013 (1,060 employees), the staff is thus increased by 5.6%. This is accounted for essentially by the full consolidation of DMOS.
While the Elmos share showed a clearly positive performance over the first half-year 2014, it took to a sideways movement in the third quarter of 2014; still it performed ahead of the market indices, all of which suffered losses in value over the third quarter.
Over the first nine months of 2014, the DAX even recorded a slight loss of 0.8%. Due to its highly positive performance in the first half-year 2014, the TecDAX managed to show a 7.1% gain for the nine-month period. The technology relevant industryspecific indices DAX Sector Technology and Technology All Share came up with gains of 8.2% and 5.8% respectively on the nine-month basis.
1
Based on the first nine months, the Elmos share gained altogether 39.5% in value. It closed at 14.93 Euro on September 30, 2014. Market capitalization was 296.1 million Euro as of that date (based on 19.8 million issued shares). The share reached its high on June 6, 2014 at 15.80 Euro and recorded its low on January 2, 2014 at 10.65 Euro (Xetra closing prices all).
The average daily trading volume of the first nine months of 2014 came to 36.3 thousand shares (Xetra and Frankfurt floor) and was thus clearly above the 2013 average (21.6 thousand shares). Partly by servicing stock options with treasury shares, the treasury stock was reduced. As of September 30, 2014 Elmos Semiconductor AG held 280,825 treasury shares (December 31, 2013: 327,697).
Some 1.1 million shares were reallocated in June 2014 to institutional investors. More information about this can be found in the chapter "Significant events" in this quarterly report. Company boards Supervisory Board Prof. Dr. Günter Zimmer, chairman Graduate physicist | Duisburg
Dr. Burkhard Dreher, deputy chairman Graduate economist | Dortmund
Dr. Klaus Egger Graduate engineer | Steyr-Gleink, Austria
Thomas Lehner Graduate engineer | Dortmund
Sven-Olaf Schellenberg Graduate physicist | Dortmund
Dr. Klaus Weyer Graduate physicist | Penzberg
Dr. Anton Mindl, chairman Graduate physicist | Lüdenscheid
Dr. Arne Schneider, since July 1, 2014 Graduate economist | Hamburg
Nicolaus Graf von Luckner, until June 30, 2014 Graduate economist | Oberursel
Reinhard Senf Graduate engineer | Iserlohn
Dr. Peter Geiselhart Graduate physicist | Ettlingen
Risk management and the individual corporate risks and opportunities are described in our Annual Report 2013. No material changes of the Company's risks and opportunities as detailed therein have occurred in the first nine months of 2014. No risks are visible at present that could either separately or collectively jeopardize the Company's continued existence.
In October 2014 the Federal Government has lowered its economic forecast for Germany significantly because of numerous international crises. The gross domestic product is now supposed to gain only 1.2% this year instead of the previously expected 1.8%. For the next year 2015 the government also no longer assumes a 2.0% growth but only 1.3%. "The German economy is navigating rough waters in foreign trade," said Sigmar Gabriel, Federal Minister for Economic Affairs. The Ifo Institute's business climate indicator of the end of October has turned for the worse again. For the sixth time in a row, the mood among German companies has deteriorated.
The European Central Bank (ECB) sees difficult times for the euro area, too. Risks of a downward trend for the economic outlook in the eurozone continue, according to the ECB's most recent monthly report released in October 2014. For 2015 the central bank still expects a "modest recovery" of the economy in the euro area.
On the global scale, the International Monetary Fund (IMF) cautions against the threat of a new global economic crisis. According to the organization, the risks for the world economy have become larger again over the past few months. In its global economic outlook, the IMF reduced the forecast for this year's global growth to 3.3%. In April expectations had still been higher by 0.4 percentage points. The IMF has also slightly lowered its forecast for 2015, now expecting 3.8% growth. Thus the Fund has repeatedly felt compelled to reduce its expectations. According to the IMF, a stagnation of the economic recovery in the euro area represents the single largest risk. The Fund also identifies major difficulties for the Russian economy due to the sanctions imposed because of the Ukraine crisis. Erstwhile growth driver Brazil is struggling with an even weaker economy than recently expected, too. The IMF does not see major problems for China, however, whose growth is supposed to exceed 7% over the next two years.
For the auto industry, the President of Germany's Association of the Automotive Industry (VDA), Matthias Wissmann, expects an increase in the global passenger car market of approx. 4% to 75.9 million vehicles in 2014; however, indicators of a slowdown were accumulating in October 2014. Ford, Opel and Fiat announced plans to reduce their production output in several countries. The VDA also recently noticed that "the mood among consumers and in the industry has been deteriorating to some degree due to geopolitical uncertainty."
Based on the currently available information and the performance of the first nine months of 2014, the Management Board provides the following outlook for the full year 2014.
Elmos notices the current rather cautious economic indications in its orders received only to a limited extent. Elmos raised its forecast for the full year in August 2014 and confirms it now. Management expects sales growth and EBIT margin to range between 9 and 12% respectively. Capital expenditures for intangible assets and property, plant and equipment are budgeted to amount to no more than 15% of sales in 2014. Management further assumes that Elmos will generate a positive adjusted free cash flow once again. This forecast is based on an exchange rate of 1.35 USD/EUR on a yearly average.
The outlook is based on the premise that the economy will not slow down further. At the same time it is true that such expectations can be affected by market turbulence. Particularly the consequences of the political and economic developments and crises in the international markets cannot be foreseen with respect to their effects on the global economy and our core market.
| Assets | 9/30/2014 thousand Euro |
12/31/2013 thousand Euro |
|---|---|---|
| Non-current assets | ||
| Intangible assets 1 | 22,229 | 26,664 |
| Property, plant and equipment 1 | 82,081 | 72,388 |
| Investments in associates | 0 | 0 |
| Securities 1, 2 | 46,874 | 48,987 |
| Investments 1, 2 | 20 | 470 |
| Other financial assets 1 | 4,182 | 2,493 |
| Deferred tax assets | 2,506 | 2,671 |
| Total non-current assets | 157,893 | 153,674 |
| Current assets | ||
| Inventories 1 | 48,175 | 40,480 |
| Trade receivables 2 | 36,040 | 38,450 |
| Securities 2 | 5,727 | 203 |
| Other financial assets | 3,336 | 2,905 |
| Other receivables | 7,332 | 7,007 |
| Income tax assets | 541 | 61 |
| Cash and cash equivalents 2 | 31,576 | 27,949 |
| 132,728 | 117,055 | |
| Non-current assets held for sale | 0 | 121 |
| Total current assets | 132,728 | 117,176 |
| Total assets | 290,620 | 270,850 |
Cf. note 3 2 Cf. note 4
| Equity and liabilities | 9/30/2014 thousand Euro |
12/31/2013 thousand Euro |
|---|---|---|
| Equity | ||
| Equity attributable to owners of the parent | ||
| Share capital 1 | 19,829 | 19,675 |
| Treasury stock 1 | –281 | –328 |
| Additional paid-in capital | 89,411 | 88,161 |
| Surplus reserve | 102 | 102 |
| Other equity components | –2,381 | –3,920 |
| Retained earnings | 94,066 | 86,868 |
| 200,746 | 190,559 | |
| Non-controlling interests | 2,626 | 2,127 |
| Total equity | 203,372 | 192,686 |
| Liabilities | ||
| Non-current liabilities | ||
| Provisions | 353 | 492 |
| Financial liabilities 2 | 37,185 | 37,491 |
| Other liabilities | 4,443 | 4,650 |
| Deferred tax liabilities | 3,949 | 3,049 |
| Total non-current liabilities | 45,931 | 45,682 |
| Current liabilities | ||
| Provisions | 12,914 | 7,505 |
| Income tax liabilities | 2,330 | 1,613 |
| Financial liabilities 2 | 659 | 303 |
| Trade payables 2 | 21,716 | 19,492 |
| Other liabilities | 3,699 | 3,569 |
| Total current liabilities | 41,318 | 32,482 |
| Total liabilities | 87,248 | 78,164 |
| Total equity and liabilities | 290,620 | 270,850 |
Cf. note 3
Cf. note 4
| 7/1 – 9/30/2014 |
in percent | 7/1 – 9/30/2013 |
in percent | ||
|---|---|---|---|---|---|
| For the period July 1 through September 30 | thousand Euro | of sales | thousand Euro | of sales | Change |
| Sales | 54,731 | 100.0% | 46,176 | 100.0% | 18.5% |
| Cost of sales | –29,699 | –54.3% | –26,295 | –56.9% | 12.9% |
| Gross profit | 25,032 | 45.7% | 19,881 | 43.1% | 25.9% |
| Research and development expenses 1 | –10,223 | –18.7% | –7,758 | –16.8% | 31.8% |
| Distribution expenses | –5,011 | –9.2% | –4,389 | –9.5% | 14.2% |
| Administrative expenses | –4,008 | –7.3% | –4,023 | –8.7% | –0.4% |
| Operating income before other operating expenses (–)/income |
5,790 | 10.6% | 3,710 | 8.0% | 56.1% |
| Exchange rate gains/losses (–) | 1,679 | 3.1% | –243 | –0.5% | n/a |
| Other operating income | 342 | 0.6% | 579 | 1.3% | –41.0% |
| Other operating expenses | –1,746 | –3.2% | –339 | –0.7% | >100.0% |
| Earnings before interest and taxes (EBIT) | 6,065 | 11.1% | 3,706 | 8.0% | 63.7% |
| Finance income | 520 | 1.0% | 576 | 1.2% | –9.7% |
| Finance cost | –445 | –0.8% | –476 | –1.0% | –6.5% |
| Earnings before taxes | 6,141 | 11.2% | 3,806 | 8.2% | 61.3% |
| Taxes on income | |||||
| Current income tax expense | –744 | –1.4% | –365 | –0.8% | >100.0% |
| Deferred taxes | –1,186 | –2.2% | –376 | –0.8% | >100.0% |
| –1,930 | –3.5% | –741 | –1.6% | >100.0% | |
| Consolidated net income | 4,210 | 7.7% | 3,065 | 6.6% | 37.4% |
| Consolidated net income attributable to | |||||
| Owners of the parent | 3,933 | 7.2% | 3,053 | 6.6% | 28.8% |
| Non-controlling interests | 277 | 0.5% | 12 | 0.0% | >100.0% |
| Earnings per share | |||||
| Basic earnings per share | 0.20 | 0.16 | |||
| Fully diluted earnings per share | 0.20 | 0.16 |
Condensed consolidated statement of comprehensive income
| For the period July 1 through September 30 | 7/1 – 9/30/2014 thousand Euro |
7/1 – 9/30/2013 thousand Euro |
|---|---|---|
| Consolidated net income | 4,210 | 3,065 |
| Other comprehensive income | ||
| Items that may be reclassified to the income statement in future periods including respective tax effects |
||
| Foreign currency adjustments not affecting deferred taxes | 227 | –39 |
| Foreign currency adjustments affecting deferred taxes | 1,104 | –423 |
| Deferred tax (on foreign currency adjustments affecting deferred taxes) | –278 | 106 |
| Value differences relating to hedges | 36 | –46 |
| Deferred tax (on value differences relating to hedges) | –12 | 15 |
| Changes in market value of available-for-sale financial assets | –4 | 210 |
| Deferred tax (on changes in market value of available-for-sale financial assets) | 1 | –69 |
| Items that will not be reclassified to the income statement in future periods including respective tax effects |
||
| Actuarial gains from pension plans | 9 | 21 |
| Deferred tax on actuarial gains from pension plans | –3 | –6 |
| Other comprehensive income after taxes | 1,080 | –231 |
| Total comprehensive income after taxes | 5,290 | 2,834 |
| Total comprehensive income attributable to | ||
| Owners of the parent | 5,009 | 2,828 |
| Non-controlling interests | 281 | 6 |
Cf. note 3
| 1/1 – 9/30/2014 |
in percent | 1/1 – 9/30/2013 |
in percent | ||
|---|---|---|---|---|---|
| For the period January 1 through September 30 | thousand Euro | of sales | thousand Euro | of sales | Change |
| Sales | 156,027 | 100.0% | 136,388 | 100.0% | 14.4% |
| Cost of sales | –88,904 | –57.0% | –81,326 | –59.6% | 9.3% |
| Gross profit | 67,123 | 43.0% | 55,063 | 40.4% | 21.9% |
| Research and development expenses 1 | –26,979 | –17.3% | –25,572 | –18.7% | 5.5% |
| Distribution expenses | –14,298 | –9.2% | –13,638 | –10.0% | 4.8% |
| Administrative expenses | –12,864 | –8.2% | –12,236 | –9.0% | 5.1% |
| Operating income before other operating expenses (–)/income |
12,982 | 8.3% | 3,616 | 2.7% | >100.0% |
| Exchange rate gains/losses (–) | 1,531 | 1.0% | –177 | –0.1% | n/a |
| Other operating income | 2,573 | 1.6% | 3,034 | 2.2% | –15.2% |
| Other operating expenses | –2,698 | –1.7% | –931 | –0.7% | >100.0% |
| Earnings before interest and taxes (EBIT) | 14,388 | 9.2% | 5,542 | 4.1% | >100.0% |
| Finance income | 1,745 | 1.1% | 1,620 | 1.2% | 7.7% |
| Finance cost | –1,337 | –0.9% | –1,608 | –1.2% | –16.8% |
| Earnings before taxes | 14,796 | 9.5% | 5,554 | 4.1% | >100.0% |
| Taxes on income | |||||
| Current income tax expense | –1,692 | –1.1% | –1,383 | –1.0% | 22.3% |
| Deferred taxes 1 | –727 | –0.5% | 631 | 0.5% | n/a |
| –2,419 | –1.6% | –752 | –0.6% | >100.0% | |
| Consolidated net income | 12,377 | 7.9% | 4,802 | 3.5% | >100.0% |
| Consolidated net income attributable to | |||||
| Owners of the parent | 12,001 | 7.7% | 4,531 | 3.3% | >100.0% |
| Non-controlling interests | 376 | 0.2% | 270 | 0.2% | 39.2% |
| Earnings per share | |||||
| Basic earnings per share | 0.62 | 0.23 | |||
| Fully diluted earnings per share | 0.61 | 0.23 |
Cf. note 3
| For the period January 1 through September 30 | 1/1 – 9/30/2014 thousand Euro |
1/1 – 9/30/2013 thousand Euro |
|---|---|---|
| Consolidated net income | 12,377 | 4,802 |
| Other comprehensive income | ||
| Items that may be reclassified to the income statement in future periods including respective tax effects |
||
| Foreign currency adjustments not affecting deferred taxes | 233 | –104 |
| Foreign currency adjustments affecting deferred taxes | 1,239 | –318 |
| Deferred tax (on foreign currency adjustments affecting deferred taxes) | –312 | 79 |
| Value differences relating to hedges | –36 | 206 |
| Deferred tax (on value differences relating to hedges) | 12 | –56 |
| Changes in market value of available-for-sale financial assets | 561 | –429 |
| Deferred tax (on changes in market value of available-for-sale financial assets) | –184 | 164 |
| Items that will not be reclassified to the income statement in future periods including respective tax effects |
||
| Actuarial gains from pension plans | 28 | 63 |
| Deferred tax on actuarial gains from pension plans | –9 | –19 |
| Other comprehensive income after taxes | 1,532 | –414 |
| Total comprehensive income after taxes | 13,909 | 4,388 |
| Total comprehensive income attributable to | ||
| Owners of the parent | 13,539 | 4,153 |
| Non-controlling interests | 370 | 234 |
Elmos Interim Report July 1 − September 30, 2014 | 11
| 1/1– 9/30/2014 thousand Euro |
1/1– 9/30/2013 thousand Euro1 |
7/1– 9/302014 thousand Euro |
7/1– 9/30/2013 thousand Euro1 |
|
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Consolidated net income | 12,377 | 4,802 | 4,210 | 3,065 |
| Depreciation and amortization | 20,103 | 16,974 | 8,287 | 5,575 |
| Financial result | –408 | –12 | –75 | –100 |
| Other non-cash income (–)/expenses | 182 | –783 | 1,135 | 326 |
| Current income tax expense | 1,692 | 1,383 | 744 | 365 |
| Expenses for stock options/stock awards/share matching | 262 | 308 | 67 | 98 |
| Changes in pension provisions | –111 | –299 | –37 | –100 |
| Changes in net working capital: | ||||
| Trade receivables | 2,864 | –4,044 | 242 | –968 |
| Inventories | –7,695 | –4,335 | –3,727 | –2,016 |
| Other assets | –629 | –1,047 | – 415 | 894 |
| Trade payables | 1,582 | 2,100 | 1,114 | 1,987 |
| Other provisions and other liabilities | 4,602 | 1,043 | 2,338 | –558 |
| Income tax payments | –1,776 | –1,942 | 156 | –1,266 |
| Interest paid | –1,337 | –1,608 | –445 | –476 |
| Interest received | 1,707 | 1,611 | 525 | 577 |
| Cash flow from operating activities | 33,415 | 14,151 | 14,119 | 7,403 |
1 Adjustment of prior-year amounts; please also refer to note 1 in the condensed notes to consolidated financial statements
| 1/1– 9/30/2014 thousand Euro |
1/1– 9/30/2013 thousand Euro1 |
7/1– 9/302014 thousand Euro |
7/1– 9/30/2013 thousand Euro1 |
|
|---|---|---|---|---|
| Cash flow from investing activities | ||||
| Capital expenditures for intangible assets | –1,354 | –1,387 | –372 | –593 |
| Capital expenditures for property, plant and equipment | –23,676 | –11,738 | –6,985 | –3,878 |
| Payments for (–)/Disposal of non-current assets held for sale | 2 | –975 | 0 | –97 |
| Disposal of non-current assets | 997 | 531 | 33 | 1 |
| Payments for the acquisition of shares in subsidiaries plus acquired cash and cash equivalents |
546 | 0 | 0 | 0 |
| Payments for (–)/Disposal of securities | –2,850 | –26,445 | 0 | 1 |
| Disposal of investments | 0 | 1,709 | 0 | 0 |
| Payments for (–)/Payments from other non-current financial assets | –402 | –10 | –147 | 7 |
| Cash flow from investing activities | –26,737 | –38,315 | –7,471 | –4,559 |
| Cash flow from financing activities | ||||
| Repayment of non-current liabilities | –306 | –40 | –266 | 0 |
| Repayment (–)/Borrowing of current liabilities to banks | 355 | –5,165 | 505 | –5,024 |
| Purchase of treasury shares | 0 | –1,525 | 0 | 0 |
| Share-based remuneration/Issue of treasury shares | 336 | 457 | 0 | 0 |
| Capital increase from conditional capital | 865 | 157 | 330 | 116 |
| Dividend payment | –4,844 | –4,814 | 0 | 0 |
| Dividend payment to non-controlling shareholders | –367 | –400 | 0 | 0 |
| Increase of majority stake | 0 | –570 | 0 | 0 |
| Other changes | 41 | –3 | –2 | 1 |
| Cash flow from financing activities | –3,920 | –11,903 | 567 | –4,907 |
| Increase/Decrease (–) in cash and cash equivalents | 2,758 | –36,067 | 7,215 | –2,064 |
| Effect of exchange rate changes on cash and cash equivalents | 869 | –280 | 790 | –250 |
| Cash and cash equivalents at beginning of reporting period | 27,949 | 55,576 | 23,571 | 21,543 |
| Cash and cash equivalents at end of reporting period | 31,576 | 19,229 | 31,576 | 19,229 |
1 Adjustment of prior-year amounts; please also refer to note 1 in the condensed notes to consolidated financial statements
2
| Non controlling |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity attributable to owners of the parent | interests | Group | |||||||||||
| Other equity components | |||||||||||||
| Shares thousand |
Share capital thousand Euro |
Treasury stock thousand Euro |
Additional paid-in capital thousand Euro |
Surplus reserve thousand Euro |
Reserve for available-for-sale financial assets thousand Euro |
Hedges thousand Euro |
Foreign currency translation thousand Euro |
Unrealized actuarial gains/ losses thousand Euro |
Retained earnings thousand Euro |
Total thousand Euro |
Total thousand Euro |
Total thousand Euro |
|
| January 1, 2013 before adjustments | 19,616 | 19,616 | –240 | 88,599 | 102 | 71 | –1,306 | –1,634 | 0 | 82,255 | 187,463 | 2,587 | 190,050 |
| Effects of first-time application of IAS 19R | –533 | 72 | –461 | –461 | |||||||||
| January 1, 2013 after adjustments | 19,616 | 19,616 | –240 | 88,599 | 102 | 71 | –1,306 | –1,634 | –533 | 82,327 | 187,002 | 2,587 | 189,589 |
| Consolidated net income | 4,531 | 4,531 | 270 | 4,802 | |||||||||
| Other comprehensive income for the period | –265 | 150 | –307 | 44 | –378 | –36 | –414 | ||||||
| Total comprehensive income | –265 | 150 | –307 | 44 | 4,531 | 4,153 | 234 | 4,388 | |||||
| Share-based remuneration/Issue of treasury shares | 101 | 356 | 457 | 457 | |||||||||
| Capital increase from conditional capital | 42 | 42 | 115 | 157 | 157 | ||||||||
| Transaction costs | –4 | –4 | –4 | ||||||||||
| Purchase of treasury shares | –189 | –1,336 | –1,525 | –1,525 | |||||||||
| Dividend payment | –4,814 | –4,814 | –4,814 | ||||||||||
| Dividend payment to non-controlling shareholders | 0 | –400 | –400 | ||||||||||
| Expenses for stock options and stock awards | 308 | 308 | 308 | ||||||||||
| Increase of majority stake | –85 | –85 | –485 | –570 | |||||||||
| Other changes | 11 | 11 | –11 | 0 | |||||||||
| September 30, 2013 | 19,658 | 19,658 | –328 | 88,038 | 102 | –194 | –1,156 | –1,941 | –489 | 81,970 | 185,660 | 1,925 | 187,585 |
| January 1, 2014 | 19,675 | 19,675 | –328 | 88,161 | 102 | 78 | –1,119 | –2,191 | –688 | 86,868 | 190,559 | 2,127 | 192,686 |
| Consolidated net income | 12,001 | 12,001 | 376 | 12,377 | |||||||||
| Other comprehensive income for the period | 377 | –24 | 1,167 | 19 | 1,538 | –6 | 1,532 | ||||||
| Total comprehensive income | 377 | –24 | 1,167 | 19 | 12,001 | 13,539 | 370 | 13,909 | |||||
| Share-based remuneration/Issue of treasury shares | 47 | 289 | 336 | 336 | |||||||||
| Capital increase from conditional capital | 154 | 154 | 711 | 865 | 865 | ||||||||
| Transaction costs | –12 | –12 | –12 | ||||||||||
| Changes in basis of consolidation | 0 | 483 | 483 | ||||||||||
| Dividend payment | –4,844 | –4,844 | –4,844 | ||||||||||
| Dividend payment to non-controlling shareholders | 0 | –367 | –367 | ||||||||||
| Expenses for stock options/stock awards/share matching | 262 | 262 | 262 | ||||||||||
| Other changes | 41 | 41 | 13 | 54 | |||||||||
| September 30, 2014 | 19,829 | 19,829 | –281 | 89,411 | 102 | 455 | –1,143 | –1,024 | –669 | 94,066 | 200,746 | 2,626 | 203,372 |
The condensed interim consolidated financial statements for the 3rd quarter of 2014 were released for publication pursuant to Management Board resolution in November 2014.
Elmos Semiconductor Aktiengesellschaft ("the Company" or "Elmos") has its registered office in Dortmund (Germany) and is entered in the register of companies maintained at Dortmund District Court (Amtsgericht), section B, no. 13698. The Articles of Incorporation are in effect in the version of March 26, 1999, last edited pursuant to Supervisory Board resolution of January 13, 2014.
The Company's business is the development, manufacture and distribution of microelectronic components and system parts (application specific integrated circuits, or in short: ASICs) as well as technological devices with similar functions. The Company may conduct all transactions suitable for serving the object of business directly or indirectly. The Company may establish branches, acquire or lease businesses of the same or a similar kind or invest in them, and conduct all business transactions that are beneficial to the Articles of Association. The Company is authorized to conduct business in Germany as well as abroad.
In addition to its domestic branches, the Company has sales companies and business locations in Europe, Asia, South Africa and the United States and cooperates with other German and international companies in the development and production of ASIC chips.
The condensed interim consolidated financial statements for the period January 1 through September 30, 2014 have been prepared in accordance with IAS 34: Interim Financial Reporting. These financial statements do therefore not contain all the information and disclosures required for consolidated financial statements and should therefore be read in conjunction with the consolidated financial statements for the fiscal year ended December 31, 2013.
For the preparation of the condensed interim consolidated financial statements, the same accounting policies and valuation methods have been adopted as were applied for the preparation of the consolidated financial statements for the fiscal year ended December 31, 2013, with the exception of the following new or amended IFRS standards and interpretations listed below.
First-time application of these standards or interpretations did not result in material effects on the Group's financial, profit and economic situation.
-> Clarification of accounting treatment of spare parts according to IAS 16 by Annual Improvements 2009-2011 Cycle
Pursuant to IAS 16.8, items such as spare parts are recognized according to the standard applicable to property, plant and equipment if those parts meet the definition of an item of property, plant and equipment. Otherwise such items are treated as inventory. Within the framework of the Annual Improvements 2009-2011 Cycle, the IASB provided a clarification to the effect that spare parts and servicing equipment must generally be capitalized as property, plant and equipment regardless of whether or not they can only be used in connection with an item of property, plant and equipment if only they meet the respective definition (see IAS 16.6). In previous years Elmos reported all spare parts as part of the inventory. In order to comply with the IASB's clarification and the amended IAS 16, spare parts have been reclassified to non-current assets. This reclassification was carried out effective December 31, 2013 for the first time. For the 9-month financial statements as of September 30, 2013, the clarification described above did not have to be implemented yet so that the prior-year amounts have been adjusted for this change in these 9-month financial statements.
| thousand Euro | 7/1 –9/30/2013 before adjustments |
Corrections pursuant to IAS 8 |
7/1 – 9/30/2013 after adjustments |
|---|---|---|---|
| Consolidated statement of cash flows | |||
| Depreciation and amortization | 4,530 | 1,045 | 5,575 |
| Changes in inventories | –1,758 | –258 | –2,016 |
| Cash flow from operating activities | 6,616 | 787 | 7,403 |
| Capital expenditures for property, plant and equipment | –3,091 | –787 | –3,878 |
| Cash flow from investing activities | –3,772 | –787 | –4,559 |
| thousand Euro | 1/1 –9/30/2013 before adjustments |
Corrections pursuant to IAS 8 |
1/1 – 9/30/2013 after adjustments |
|---|---|---|---|
| Consolidated statement of cash flows | |||
| Depreciation and amortization | 13,839 | 3,135 | 16,974 |
| Changes in inventories | –3,561 | –774 | –4,335 |
| Cash flow from operating activities | 11,790 | 2,361 | 14,151 |
| Capital expenditures for property, plant and equipment | –9,377 | –2,361 | –11,738 |
| Cash flow from investing activities | –35,954 | –2,361 | –38,315 |
The Company recognizes provisions for pension and partial retirement obligations pursuant to IAS 19. For 2014 actuarial interest rates of 3.1% have been applied for pension obligations and of 1.41% for partial retirement obligations respectively, unchanged from December 31, 2013.
There were no exceptional business transactions in the first nine months of 2014.
The Elmos Group's basis of consolidation was expanded by two companies in the first nine months of 2014.
A Japanese subsidiary for sales and application support was established in May 2014, included in the consolidated financial statements in the second quarter for the first time.
Furthermore, Elmos AG acquired 54.8% of the shares in DMOS Dresden MOS Design GmbH, Dresden ("DMOS GmbH") for a purchase price of 21 thousand Euro, which had been fixed in the past, with economic effect as of April 1, 2014 by exercising an option. Up to and including March 31, 2014, Elmos AG accounted for its 20% stake in DMOS GmbH at amortized cost in accordance with IAS 39. Upon the acquisition of the additional stake of 54,8%, Elmos AG is now in a position to exercise control over DMOS GmbH within the meaning of IFRS 3. Therefore DMOS GmbH has been included as a subsidiary in the consolidated financial statements of Elmos AG as of April 1, 2014. The company, established in 2002, operates in the semiconductor industry and primarily acts as supplier of development services in the field of analog and digital circuits as well as program developments for testing production circuits. The services and software solutions offered by the company find use especially in the realm of automotive applications.
The preliminary fair values of the identifiable assets and liabilities of DMOS GmbH at the time of obtaining control are as follows:
| Fair value at the time of obtaining control (in thousand Euro) |
|
|---|---|
| Assets | |
| Intangible assets | 148 (thereof 143 from the disclosure of hidden reserves) |
| Property, plant and equipment | 1,128 |
| Cash and cash equivalents | 567 |
| Trade receivables | 1 |
| Receivables from affiliated companies | 453 |
| Tenant loans | 772 |
| Prepaid expenses and accrued income | 617 |
| Other assets | 250 |
| 3,936 | |
| Liabilities | |
| Provisions | –744 |
| Deferred tax liabilities | –45 |
| Trade payables | –44 |
| Liabilities to affiliated companies | –898 |
| Other equity and liabilities | –291 |
| –2,022 | |
| = total identifiable net assets at fair value | 1,914 |
| Non-controlling interests at fair value | –540 |
| Non-controlling interests as of the acquisition date | –483 |
| Overpayment of intangible assets | –454 |
| Badwill from business acquisition | –416 |
| = transferred consideration | 21 |
| Breakdown of cash inflow due to obtaining control: | |
| Cash and cash equivalents obtained upon the transition from investment to subsidiary | 567 |
| Cash outflow | –21 |
| Actual cash inflow due to business acquisition | 546 |
2
The fair value of trade receivables equals the gross amount of trade receivables and comes to 1 thousand Euro. These receivables were not impaired and the entire contractually determined amount is probably recoverable.
The business transaction resulted in badwill in the amount of 416 thousand Euro recognized in other operating income in the consolidated income statement. This income from an acquisition at a price below market value is accountable for by the fact that the purchase price for the most recently acquired 54.8% stake in DMOS GmbH was fixed at a much earlier point in time.
Transaction costs in the amount of 50 thousand Euro were recognized as expense and are reported in the consolidated income statement under administrative expenses.
The revaluation of the previously held 20% interest at fair value resulted in a positive contribution to earnings in the amount of 91 thousand Euro, reported in the consolidated income statement under other operating income.
The disclosure pursuant to IAS 34 16A (i) read in conjunction with IFRS 3 B64 q is passed on. DMOS GmbH almost exclusively performs group-internal services so that the effects of the entity's firsttime inclusion in the consolidated financial statements can be qualified as immaterial with regard to sales and earnings.
Altogether it can be declared that comparability with the prior-year consolidated financial statements with respect to financial, profit and economic situation has not been materially affected by the first-time inclusion of the two new subsidiaries.
Some economic indicators have been reduced considerably in part over the past few weeks. In October 2014 the Federal Government has lowered its economic forecast for Germany significantly because of numerous international crises. The European Central Bank (ECB) sees difficult times for the euro area, too. On the global scale, the International Monetary Fund (IMF) cautions against the threat of a new global economic crisis. According to the IMF, a stagnation of the economic recovery in the euro area represents the single largest risk. The business of Elmos Semiconductor AG shows only minor seasonal fluctuations.
The business segments correspond to the Elmos Group's internal organizational and reporting structure. The definition of segments considers the different products and services supplied by the Group. The accounting principles of the individual segments correspond to those applied by the Group.
The Company divides its business activities into two segments. The semiconductor business is operated through the various national subsidiaries and branches in Germany, the Netherlands, South Africa, Asia, and the U.S.A. Sales in this segment are generated predominantly with electronics for the automotive industry. In addition to that, Elmos operates in the markets for industrial and consumer goods and provides semiconductors e.g. for applications in household appliances, photo cameras, installation and building technology, and machine control. Sales in the micromechanics segment are generated by the subsidiary SMI in the U.S.A. Its product portfolio includes micro-electro-mechanical systems (MEMS) which are primarily silicon-based highprecision pressure sensors. The following tables provide information on sales and earnings (for the period January 1 through September 30, 2014 and 2013, respectively) as well as on assets of the Group's business segments (as of September 30, 2014 and December 31, 2013).
| 9 months as of September 30, 2014 | Semiconductor thousand Euro |
Micromechanics thousand Euro |
Consolidation thousand Euro |
Group thousand Euro |
|---|---|---|---|---|
| Sales | ||||
| Third-party sales | 142,450 | 13,577 | 0 | 156,027 |
| Inter-segment sales | 393 | 1,183 | –1,576 1 | 0 |
| Total sales | 142,843 | 14,760 | –1,576 | 156,027 |
| Earnings | ||||
| Segment earnings | 12,196 | 2,192 | 0 | 14,388 |
| Finance income | 1,745 | |||
| Finance cost | –1,337 | |||
| Earnings before taxes | 14,796 | |||
| Taxes on income | –2,419 | |||
| Consolidated net income including non-controlling interests | 12,377 | |||
| Assets | ||||
| Segment assets | 238,163 | 17,814 | 34,623 2 | 290,600 |
| Investments | 20 | 0 | 0 | 20 |
| Total assets | 290,620 | |||
| Other segment information | ||||
| Additions of intangible assets and property, plant and equipment |
28,099 | 679 | 0 | 28,778 |
| Depreciation and amortization | 21,724 | 603 | 0 | 22,327 |
| 9 months as of September 30, 2013 | Semiconductor thousand Euro3 |
Micromechanics thousand Euro |
Consolidation thousand Euro |
Group thousand Euro3 |
|---|---|---|---|---|
| Sales | ||||
| Third-party sales | 124,902 | 11,486 | 0 | 136,388 |
| Inter-segment sales | 303 | 586 | –889 1 | 0 |
| Total sales | 125,205 | 12,072 | –889 | 136,388 |
| Earnings | ||||
| Segment earnings | 4,705 | 837 | 0 | 5,542 |
| Finance income | 1,620 | |||
| Finance cost | –1,608 | |||
| Earnings before taxes | 5,554 | |||
| Taxes on income | –752 | |||
| Consolidated net income including non-controlling interests | 4,802 | |||
| Assets (as of 12/31/2013) | ||||
| Segment assets | 223,533 | 16,166 | 30,681 2 | 270,380 |
| Investments | 470 | 0 | 0 | 470 |
| Total assets | 270,850 | |||
| Other segment information | ||||
| Additions of intangible assets and property, plant and equipment |
12,121 | 1,004 | 0 | 13,125 |
| Depreciation and amortization | 16,450 | 524 | 0 | 16,974 |
1 Sales from inter-segment transactions have been eliminated for consolidation purposes.
2 Non-attributable assets as of September 30, 2014 include cash and cash equivalents (31,576 thousand Euro), income tax assets (541 thousand Euro), and deferred tax (2,506 thousand Euro), as these assets are controlled at group level.
1 Sales from inter-segment transactions have been eliminated for consolidation purposes.
2 Non-attributable assets as of December 31, 2013 include cash and cash equivalents (27,949 thousand Euro), income tax assets (61 thousand Euro), and deferred tax (2,671 thousand Euro), as these assets are controlled at group level.
3 Adjustment of prior-year amounts; please also refer to note 1 in the condensed notes to consolidated financial statements
| Third-party sales | 9 months as of 9/30/2014 thousand Euro |
9 months as of 9/30/2013 thousand Euro |
|---|---|---|
| Germany | 53,374 | 47,960 |
| Other EU countries | 37,102 | 37,848 |
| U.S.A. | 15,729 | 10,177 |
| Asia/Pacific | 39,759 | 31,013 |
| Other countries | 10,063 | 9,390 |
| Consolidated sales | 156,027 | 136,388 |
| Geographical distribution of non-current assets | 9/30/2014 thousand Euro |
12/31/2013 thousand Euro |
|---|---|---|
| Germany | 142,192 | 139,613 |
| Other EU countries | 3,946 | 4,297 |
| U.S.A. | 4,939 | 4,511 |
| Other countries | 128 | 89 |
| Non-current assets | 151,205 | 148,510 |
| Development of selected non-current assets January 1 through September 30 |
Net book value 1/1/2014 thousand Euro |
Reclassification thousand Euro |
Additions thousand Euro |
Disposals/Other movements thousand Euro |
Depreciation and amortization thousand Euro |
Net book value 9/30/2014 thousand Euro |
|---|---|---|---|---|---|---|
| Intangible assets | 26,664 | 25 | 1,963 | 505 | 5,918 | 22,229 |
| Property, plant and equipment | 72,388 | –25 | 26,815 | 688 | 16,409 | 82,081 |
| Securities | 48,987 | 0 | 5,350 | 7,463 | 0 | 46,874 |
| Investments | 470 | 0 | 0 | 450 | 0 | 20 |
| Other financial assets | 2,493 | 0 | 1,957 | 267 | 0 | 4,182 |
| 151,002 | 0 | 36,085 | 9,373 | 22,327 | 155,387 |
The item "Disposals/Other movements" includes negative currency adjustments in the amount of 399 thousand Euro.
| 9/30/2014 thousand Euro |
12/31/2013 thousand Euro |
|
|---|---|---|
| Raw materials | 4,180 | 3,866 |
| Work in process | 36,644 | 28,731 |
| Finished goods and merchandise | 7,351 | 7,883 |
| 48,175 | 40,480 |
As of September 30, 2014, the share capital of Elmos Semiconductor AG consists of 19,828,883 shares. The Company currently holds 280,825 treasury shares.
As of September 30, 2014, altogether 814,619 options from stock option plans are outstanding. The options are attributable to the separate tranches as follows:
| 2009 | 2010 | 2011 | 2012 | Total |
|---|---|---|---|---|
| 2009 | 2010 | 2011 | 2012 | |
| 3.68 | 7.49 | 8.027 | 7.42 | |
| 3 | 4 | 4 | 4 | |
| 3 | 3 | 3 | 3 | |
| 140,910 | 235,128 | 243,510 | 394,693 | 1,014,241 |
| 96,770 | 77,728 | 0 | 0 | 174,498 |
| 1,650 | 5,915 | 8,980 | 8,579 | 25,124 |
| 42,490 | 151,485 | 234,530 | 386,114 | 814,619 |
| 42,490 | 151,485 | 0 | 0 | 193,975 |
In a regular review of the intangible assets a reassessment of the purchased technology licenses with related know how has been undertaken. As a consequence, license costs capitalized in this context under intangible assets have been written down by 1,759 thousand Euro. This additional expense has been reported in the consolidated income statement under research and development expenses.
The first nine months of 2014 include a one-off effect with respect to recognized deferred taxes, favoring the taxes on income reported in the consolidated financial statements in the amount of 1,847 thousand Euro. The corresponding recognized deferred tax assets have already been consumed almost entirely in fiscal year 2014.
The following table lists the book values and fair values of the Group's financial instruments. The fair value of a financial instrument is the price that would be received for the sale of an asset or paid for the transfer of a liability between market participants in a regular business transaction as of the measurement date. In view of varying factors of influence, the presented fair values can only be regarded as indicators of the amounts actually recoverable in the market. Detailed information on the methods and assumptions underlying the determination of the value of financial instruments can be found under note 29 to the 2013 consolidated financial statements. Their relevance to these nine-month financial statements is undiminished.
| 9/30/2014 | 12/31/2013 | |||
|---|---|---|---|---|
| thousand Euro | Book value | Fair value | Book value | Fair value |
| Financial assets | ||||
| Investments | 20 | 20 | 470 | 470 |
| Long-term securities | 46,874 | 46,874 | 48,987 | 48,987 |
| Short-term securities | 5,727 | 5,727 | 203 | 203 |
| Trade receivables | 36,040 | 36,040 | 38,450 | 38,450 |
| Cash and cash equivalents | 31,576 | 31,576 | 27,949 | 27,949 |
| Other financial assets | ||||
| Other receivables and assets | 1,932 | 1,932 | 2,639 | 2,639 |
| Other loans | 3,857 | 3,857 | 2,711 | 2,711 |
| Forward exchange contracts/foreign exchange options | 1,654 | 1,654 | 0 | 0 |
| Call option | 48 | 48 | 48 | 48 |
| Embedded derivatives | 27 | 27 | 0 | 0 |
| Earn-out | 0 | 0 | 0 | 0 |
| Financial liabilities | ||||
| Trade payables | 21,716 | 21,716 | 19,492 | 19,492 |
| Liabilities to banks | 37,844 | 39,081 | 37,795 | 38,811 |
| Other financial liabilities | ||||
| Miscellaneous financial liabilities | 328 | 328 | 429 | 429 |
| Put option | 2,392 | 2,392 | 2,392 | 2,392 |
| Hedged derivatives (short-term) | 612 | 612 | 522 | 522 |
| Hedged derivatives (long-term) | 1,089 | 1,089 | 1,144 | 1,144 |
At the end of the reporting period a review is conducted to find out whether reclassifications between valuation hierarchies must be made. The following presentation shows which valuation hierarchy levels (according to IFRS 13) financial assets and liabilities measured at fair value are classified to.
The Group applies the following hierarchy for the determination and reporting of the fair values of financial instruments according to the respective valuation methods:
Level 1: quoted (unadjusted) prices in active markets for similar assets or liabilities
Level 2: methods where all input parameters with material effect on the determined fair value are observable either directly or indirectly
Level 3: methods using input parameters that have material effect on the determined fair values and are not based on observable market data
As of September 30, 2014, the Group held the following financial instruments measured at fair value:
| Securities | Level 1 thousand Euro |
Level 2 thousand Euro |
Level 3 thousand Euro |
|---|---|---|---|
| January 1, 2014 | 42,691 | 0 | 0 |
| Addition of securities (long-term) | 5,350 | 0 | 0 |
| Disposal of securities (long-term) | –2,620 | 0 | 0 |
| Market valuation of securities (long-term) | 656 | 0 | 0 |
| Addition of securities (short-term) | 2,620 | 0 | 0 |
| Market valuation of securities (short-term) | –95 | 0 | 0 |
| September 30, 2014 | 48,602 | 0 | 0 |
| Investments | |||
| January 1, 2014 | 0 | 0 | 470 |
| Disposal of investments | 0 | 0 | –450 |
| September 30, 2014 | 0 | 0 | 20 |
| Hedged derivatives | |||
| January 1, 2014 | 0 | –1,665 | 0 |
| Correction of valuation of hedged derivatives outside profit or loss (short-term and long-term) |
0 | –36 | 0 |
| September 30, 2014 | 0 | –1,701 | 0 |
| Call option | |||
| January 1, 2014 | 0 | 0 | 48 |
| September 30, 2014 | 0 | 0 | 48 |
| Put option | |||
| January 1, 2014 | 0 | 0 | –2,392 |
| September 30, 2014 | 0 | 0 | –2,392 |
| Forward exchange contracts/Foreign exchange options | |||
| January 1, 2014 | 0 | 0 | 0 |
| Addition of forward exchange contracts/foreign exchange options | 0 | 1,654 | 0 |
| September 30, 2014 | 0 | 1,654 | 0 |
| Embedded derivatives | |||
| January 1, 2014 | 0 | 0 | 0 |
| Addition of embedded derivatives | 0 | 27 | 0 |
| September 30, 2014 | 0 | 27 | 0 |
The securities reported under hierarchy level 1 are bonds classified by Elmos as available for sale. Plausible alternative assumptions would not result in material changes of the reported fair value.
The hedged derivatives allocated to hierarchy level 2 comprise the Company's interest rate swaps. In addition to that, foreign currency transactions (USD) and credit linked notes (embedded derivatives) of various issuers are also reported under this hierarchy level.
The available-for-sale financial assets reported under hierarchy level 3 are investments in various companies, among other assets. With this respect, the book value essentially corresponds to the market value. The call and put options agreed on with a non-controlling shareholder are measured annually at fair value, most recently as of December 31, 2013, in application of the DCF method and in consideration of the terms and conditions of the contract. In the course of the measurement process, the required publicly available market data are collected and the input parameters that cannot be observed are reviewed on the basis of internally available current information and updated if necessary. Material changes of the input parameters and their respective effects on book values are subject to routine reporting to management.
As reported in the consolidated financial statements for the fiscal year ended December 31, 2013, the Elmos Group maintains business relationships with related companies and individuals in the context of the ordinary course of business.
These supply and performance relationships continue to be transacted at market prices.
The following reportable securities transactions (directors' dealings) were made in the reporting period January 1 through September 30, 2014:
| Date Place |
Name | Function | Transaction | Number | Price/Basic price (Euro) |
Total volume (Euro) |
|---|---|---|---|---|---|---|
| 6/2/2014 off-market |
Thomas Lehner | Supervisory Board member |
Sale of Elmos shares from exercise of stock options |
2,500 | 15.63 | 39,081 |
| 6/11/2014 off-market |
Dr. Peter Geiselhart | Management Board member |
Purchase of Elmos shares |
654 | 15.27 | 9,989 |
| 6/11/2014 off-market |
Reinhard Senf | Management Board member |
Purchase of Elmos shares |
654 | 15.27 | 9,989 |
| 6/18/2014 off-market |
Reinhard Senf | Management Board member |
Sale of Elmos shares from exercise of stock options |
5,000 | 15.07 | 73,333 |
| 6/24/2014 off-market |
ZOE-VVG GmbH | Legal entity closely related to the chairman of the Supervisory Board |
Disposal 1 | 742,894 | not quantifiable |
|
| 6/24/2014 off-market |
Weyer Beteiligungs gesellschaft mbH |
Legal entity closely related to a Supervisory Board member |
Disposal 1 | 392,895 | not quantifiable |
|
| 6/27/2014 off-market |
Dr. Anton Mindl | CEO | Purchase of Elmos shares |
654 | 15.27 | 9,989 |
| 6/27/2014 off-market |
Nicolaus Graf von Luckner |
Management Board member |
Purchase of Elmos shares |
654 | 15.27 | 9,989 |
| 9/19/2014 off-market |
Reinhard Senf | Management Board member |
Sale of Elmos shares from exercise of stock options |
5,000 | 15.27 | 76,364 |
1 The transfer of the shares took place without valuation for the settlement of the right to recover possession owned by previous partner BMW INTEC Beteiligungs GmbH resulting from the time of the IPO of Elmos Semiconductor AG (please also refer to the press release of Elmos Semiconductor AG of June 26, 2014).
There have been no reportable significant events or transactions after the end of the first nine months of 2014.
Dortmund, November 5, 2014
Dr. Anton Mindl Dr. Arne Schneider Reinhard Senf Dr. Peter Geiselhart
Janina Rosenbaum | Investor Relations Phone: + 49 (0) 231-75 49-287 Fax: + 49 (0) 231-75 49-548 [email protected]
Heinrich-Hertz-Straße 1 44227 Dortmund | Germany Phone: + 49 (0) 231-75 49-0 Fax: + 49 (0) 231-75 49-149 [email protected] | www.elmos.com
This interim report was released on November 5, 2014 in English and German. Both versions are available for download on the Internet at www.elmos.com.
We are happy to send you additional informative material free of charge on your request.
This report contains statements directed to the future that are based on assumptions and estimates made by the management of Elmos. Even though we assume the underlying expectations of our statements to be realistic, we cannot guarantee these expectations will prove right. The assumptions may carry risks and uncertainties, and as a result actual events may differ materially from the current statements made with respect to the future. Among the factors that could cause such differences are changes in economic and business conditions, fluctuations of exchange rates and interest rates, the introduction of competing products, lack of acceptance of new products, and changes in business strategy. Elmos neither intends nor assumes any obligation to update its statements with respect to future events.
| 9-month results Q3/20141 | November 5, 2014 |
|---|---|
| Equity Forum in Frankfurt/Main | November 25-26, 2014 |
| Preliminary results 20141, 2 | February 18, 2015 |
| Results 2014, annual press and analysts' conference | March 18, 2015 |
| 3-month results Q1/20151, 2 | May 5, 2015 |
| Annual General Meeting in Dortmund | May 8, 2015 |
| 6-month results Q2/20151, 2 | August 5, 2015 |
| 9-month-results Q3/20151, 2 | November 4, 2015 |
| 1 The German Securities Trading Act (Wertpapierhandelsgesetz) obliges issuers to announce immediately any information that may have a substantial price impact, irrespective of the communicated schedules. Therefore we cannot exclude that we have to announce key figures of quarterly and annual results ahead of the dates mentioned above. As we can never rule out changes of dates, we recommend checking them on the Company's website (www.elmos.com). |
2 Starting with the calendar year 2015 the results will usually be published before the markets open.
Elmos Semiconductor AG Heinrich-Hertz-Straße 1 44227 Dortmund | Germany Phone + 49 (0) 231 - 75 49 - 0 Fax + 49 (0) 231 - 75 49 - 149 [email protected] | www.elmos.com
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