Quarterly Report • Aug 11, 2014
Quarterly Report
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Half-year report HY1 2014
-> Forecast raised slightly
| 3 months | 6 months | |||||||
|---|---|---|---|---|---|---|---|---|
| year-over-year comparison | year-over-year comparison | |||||||
| in million Euro or percent unless otherwise indicated |
04/01 – 06/30/2014 |
04/01 – 06/30/20131 |
Change | 01/01 – 06/30/2014 |
01/01 – 06/30/20131 |
Change | ||
| Sales | 51.9 | 47.1 | 10.3% | 101.3 | 90.2 | 12.3% | ||
| Semiconductor | 47.1 | 43.3 | 8.9% | 92.7 | 82.4 | 12.5% | ||
| Micromechanics | 4.8 | 3.8 | 26.1% | 8.6 | 7.8 | 9.8% | ||
| Gross profit | 21.5 | 18.3 | 17.4% | 42.1 | 35.2 | 19.6% | ||
| in percent of sales | 41.5% | 39.0% | 41.6% | 39.0% | ||||
| R&D expenses | –8.1 | – 9.0 | –10.4% | –16.8 | –17.8 | – 5.9% | ||
| in percent of sales | 15.6% | 19.2% | 16.5% | 19.7% | ||||
| Operating income before other operating expenses (–)/income | 4.4 | 0.5 | >100.0% | 7.2 | – 0.1 | n/a | ||
| in percent of sales | 8.4% | 1.2% | 7.1% | – 0.1% | ||||
| Exchange rate losses (–)/gains | 0.1 | –0.1 | n/a | – 0.1 | 0.1 | n/a | ||
| Other operating expenses (–)/income | 0.7 | 1.1 | – 38.6% | 1.3 | 1.9 | – 31.4% | ||
| EBIT | 5.1 | 1.6 | >100.0% | 8.3 | 1.8 | >100.0% | ||
| in percent of sales | 9.8% | 3.3% | 8.2% | 2.0% | ||||
| Consolidated net income after non-controlling interests | 4.0 | 1.1 | >100.0% | 8.1 | 1.5 | >100.0% | ||
| in percent of sales | 7.8% | 2.2% | 8.0% | 1.6% | ||||
| Basic earnings per share (in Euro) | 0.21 | 0.05 | >100.0% | 0.42 | 0.08 | >100.0% | ||
| Cash flow from operating activities | 7.7 | 0.8 | >100.0% | 19.3 | 6.7 | >100.0% | ||
| Capital expenditures for intangible assets and property, plant and equipment | 9.7 | 5.7 | 69.9% | 17.7 | 8.7 | >100.0% | ||
| in percent of sales | 18.6% | 12.1% | 17.4% | 9.6% | ||||
| Free cash flow2 | – 3.4 | – 13.7 | 75.4% | 0.0 | –27.0 | n/a | ||
| Adjusted free cash flow3 | –1.9 | –3.2 | 38.5% | 1.6 | –0.2 | n/a | ||
| in million Euro or percent | ||||||||
| unless otherwise indicated | 06/30/2014 | 12/31/2013 | Change | |||||
| Equity | 197.7 | 192.7 | 2.6% | |||||
| in percent of total assets | 70.5% | 71.1% | ||||||
| Employees (reporting date) | 1,118 | 1,060 | 5.5% | |||||
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
Due to calculation processes, tables and references may produce rounding differences from the mathematically exact values (monetary units, percentage statements, etc.).
In the 1st half-year 2014 sales went up 12.3% compared to the prior-year period to reach 101.3 million Euro. Comparing quarters year-over-year, sales of the second quarter gained 10.3% on the prior-year quarter (Q2 2013: 47.1 million Euro) and 5.2% on the previous quarter (Q1 2014: 49.4 million Euro), coming to 51.9 million Euro in the reporting quarter. Elmos continues to benefit from the positive trend in new car registrations in Europe, the U.S., and China.
The sales increase is driven by the disproportionate growth of the Asian market (+3.7 million Euro or 17.3%) and ramp-ups of new products. Yet the entire European market – Germany in particular – showed a considerable repeat rebound in the 1st half-year 2014 (+3.7 million Euro or 6.6%). Compared to the prior-year period, the semiconductor segment climbed 12.5% to 92.7 million Euro (HY1 2013: 82.4 million Euro). Sales of the micromechanics segment were up 9.8% to 8.6 million Euro, comparing six months year-over-year (HY1 2013: 7.8 million Euro). Expressed in U.S. dollars, half-year growth would have even been much higher (+14.7%). The ramp-ups of the micromechanics segment in the second quarter of 2014 made a substantial contribution to this sales improvement (Q2 2014: 4.8 million Euro vs. Q2 2013: 3.8 million Euro).
The ratio of order backlog to sales, the so-called book-to-bill, was above one at the end of the first half-year 2014.
| 01/01 – 06/30/2014 | in percent | 01/01 – 06/30/2013 | in percent | ||
|---|---|---|---|---|---|
| Third-party sales | thousand Euro | of sales | thousand Euro | of sales | Change |
| Germany | 34,496 | 34.1% | 30,689 | 34.0% | 12.4% |
| Other EU countries | 25,802 | 25.5% | 25,889 | 28.7% | – 0.3% |
| U.S.A. | 9,661 | 9.5% | 6,172 | 6.9% | 56.5% |
| Asia/Pacific | 24,798 | 24.5% | 21,135 | 23.4% | 17.3% |
| Others | 6,539 | 6.4% | 6,328 | 7.0% | 3.3% |
| Consolidated sales | 101,296 | 100.0% | 90,213 | 100.0% | 12.3% |
The cost of sales rose by 7.6% to 59.2 million Euro in the first six months of 2014 compared to the prior-year period, a disproportionately low increase in relation to sales (HY1 2013: 55.0 million Euro). The gross margin went up accordingly to 41.6% (HY1 2013: 39.0%). The gross profit was increased by 19.6% to 42.1 million Euro in comparison with the prioryear period (HY1 2013: 35.2 million Euro), thus growing much faster than sales did. This is a positive effect of the successively improved efficiency in production.
Research and development expenses went down from 17.8 million Euro in the prior-year period to 16.8 million Euro. In relation to sales, R&D expenses declined from 19.7% in the prior-year period to 16.5% in the reporting period. Responsible for this are among other things several grants realized in the second quarter 2014.
Distribution expenses as expressed in absolute numbers are stable in the reporting period (HY1 2014: 9.3 million Euro vs. HY1 2013: 9.2 million Euro). In relation to sales, however, expenses dropped from 10.3% to 9.2%. Administrative expenses were also reduced in relation to sales, from 9.1% to 8.7%.
As a result of the sales increase and the gains in efficiency regarding manufacturing cost and operating expenses, earnings before interest and taxes (EBIT) for the first six months reached 8.3 million Euro or 8.2% of sales (HY1 2013: 1.8 million Euro or 2.0%). Apart from that, consolidated net income attributable to owners of the parent of 8.1 million Euro for the first six months was satisfying (HY1 2013: 1.5 million Euro), accounted for by the positive contribution due to the accounting treatment of deferred tax income in connection with tax-deductible losses in the first quarter of 2014. Basic earnings per share (EPS) amount to 0.42 Euro (HY1 2013: 0.08 Euro).
The operating cash flow was increased considerably and amounted to 19.3 million Euro in the reporting period as compared to 6.7 million Euro in the prior-year period. Apart from the higher consolidated net income (+6.4 million Euro), another essential reason for the increase in cash flow from operating activities is the reduction of trade receivables. The cutback by 2.6 million Euro in the reporting period corresponds with an increase in trade receivables by 3.1 million in the prior-year period. Capital expenditures for intangible assets and property, plant and equipment were significantly higher in the first halfyear due to the continued conversion of 6 to 8-inch production and the expansion of test capacity, reaching 17.7 million Euro (HY1 2013: 8.7 million Euro). Despite high capital expenditure, 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 1.6 million Euro, above the prior-year period's amount (HY1 2013: –0.2 million Euro).
As of June 30, 2014 cash and cash equivalents as well as fungible securities amounted to 76.2 million Euro, down from December 31, 2013 by 1.0 million Euro (December 31, 2013: 77.1 million Euro).
Net cash at 38.4 million Euro was down slightly compared to December 31, 2013 (39.3 million Euro), among other factors accounted for by the payment of a dividend in the amount of 4.8 million Euro. The equity ratio remained stable at 70.5% as of June 30, 2014 (December 31, 2013: 71.1%).
The major car markets reported growth in the 1st half-year 2014 worldwide. In Western Europe roughly 6.4 million vehicles were sold. This equals a 5.5% gain on the prior-year period. The largest growth was achieved by Spain (+18%) and Great Britain (+11%) while Italy, France (+3% each), and Germany (+2%) only showed below-average increases in new registrations.
The market volume of light vehicles (passenger cars and light trucks) in the U.S.A. amounted to 8,1 million units in the first half-year. In relative terms the market grew by about 4%. Especially light truck sales performed positively while the passenger car segment did not record any growth.
The passenger car market in China remains the global auto industry's growth driver. With the market reaching a volume
of close to 8.9 million units in the first half-year 2014, the prior-year benchmark was exceeded by 14%. Thus the Chinese market is now roughly 40% larger than the Western European one.
Japan also showed a highly satisfactory development. In the first half-year 2014, demand for passenger cars was up 11% to about 2.6 million units. Particularly strong was the demand in the year's first few months as a higher sales tax rate was introduced effective April 2014.
Dr. Anton Mindl, CEO, and Nicolaus Graf von Luckner, CFO, explained the annual results 2013 within the framework of the annual press conference and the analysts' conference held on March 20, 2014. The management presented the financial results for the first quarter of 2014 on May 6, 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 respectively decided on with a significant majority of the votes.
1,135,789 Elmos shares were placed with institutional investors, thus settling pre-IPO claims of former Elmos shareholders 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, placed the Elmos shares with institutional investors off-market by way of accelerated bookbuilding on June 26, 2014, acting as trustees for former Elmos shareholder BMW INTEC Beteiligungs GmbH.
Weyer Beteiligungsgesellschaft mbH compensated a further part of the claims with own funds, thus economically increasing the share in Elmos Semiconductor AG.
Elmos presented its products at the world's leading trade shows. In the first half-year 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 has the world's highest measurement precision of its segment. Elmos also pushed the marketing of an LED controller family for use in rough environments. Furthermore, Elmos introduced a number of products for "smart home solutions". These include motion and smoke detectors, among others. Finally, in closing the first six months, stepper, DC and BLDC drivers were presented.
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 May 2014.
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 Management Board 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
The Elmos Group's workforce came to 1,118 employees as of June 30, 2014. Compared with December 31, 2013 (1,060 employees), the staff is thus increased by 5.5%. This is accounted for essentially by the full consolidation of DMOS.
Considering the half-year period, the stock markets showed a pleasant development despite the political and economic crises.
After a sideways movement in the first quarter of 2014, the DAX had a positive performance in the second quarter of 2014 so that a 2.9% gain was ultimately achieved over the first halfyear 2014 as a whole. The technology relevant industry-specific indices managed to score higher increases, however. TecDAX, DAX Sector Technology, and Technology All Share were up 12.2%, 18.8%, and 10.9% respectively in the first half-year 2014.
The Elmos share presented a very good performance in the first half-year 2014 with a 37.1% gain. It closed at 14.67 Euro on June 30, 2014. Market capitalization was 289.8 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 its low on January 2, 2014 at 10.65 Euro (Xetra closing prices).
The average daily trading volume of the first six months of 2014 came to 39.9 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 June 30, 2014 Elmos Semiconductor AG held 280,825 treasury shares (December 31, 2013: 327,697).
Moreover, 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 half-year report.
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 six months of 2014. No risks are visible at present that could either separately or collectively jeopardize the Company's continued existence.
The upswing in Germany lost its momentum noticeably in the spring, according to the Bundesbank. In April and May the industry shifted to a lower gear, Germany's central bank explained. However, from the vantage of the Federal Ministry of Finance, the factors at hand still indicate "a continuation of the dynamic economic performance especially of the domestic economy."
In the euro area, the moderate economic recovery sped up insignificantly, according to the Ifo Institute, with an increase of the real gross domestic product of 0.3% in the second quarter of 2014 (after +0.2% the previous quarter). In the third and fourth quarters, the expansion rate is expected to stabilize at that level. The rebound will probably involve a large number of segments and member states.
The U.S. central bank, the Federal Reserve, has an optimistic view of the economic development in the United States, as is indicated in the Fed's economic report from July 2014. The Fed reports that the economy kept growing over the past weeks. Most regions are quoted with positive assessments of their respective growth prospects.
As the Bureau of Statistics recently announced in Beijing (China), the country's economic performance of the second quarter gained 7.5% on the previous year's quarter of comparison. For the full year, the Chinese government has set a target of 7.5% as well.
The major risks for the economic recovery are, according to the Ifo Institute, a possible increase of the savings ratio of private households in the euro area toward the reduction of the partly substantial debt levels, diminishing demand from Asia and Latin America, and an escalation of the international conflicts in Eastern Europe and the Middle East which might lead to a strong increase in energy prices.
For the auto industry, the President of Germany's Association of the Automotive Industry (VDA), Matthias Wissmann, expects the global market for passenger cars to grow about 4% to 75.9 million vehicles in 2014.
Based on the currently available information and the performance of the first six months of 2014, the Management Board provides the following outlook for the full year 2014.
The market recovery reflects in orders received and sales as described above. All indicators suggest that Elmos will grow faster than the global auto market.
Elmos slightly raises its forecast for 2014. Management is now expecting sales growth and EBIT margin to range between 9 and 12% respectively (previously: upper single-digit percentage range). 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 (previously: 1.30 USD/EUR).
The outlook is based on the premise that the overall economic situation will materialize as described. In that case Elmos will participate in the positive development in the automotive and industrial semiconductor markets in 2014. The electrification of these markets will continue. At the same time it is true that such expectations can be affected by market turbulence. Particularly the developments in Ukraine and the Middle East cannot be foreseen with respect to their effects on the global economy and our core market.
| Assets | 06/30/2014 thousand Euro |
12/31/2013 thousand Euro |
|---|---|---|
| Non-current assets | ||
| Intangible assets1 | 24,806 | 26,664 |
| Property, plant and equipment1 | 80,196 | 72,388 |
| Investments in associates | 0 | 0 |
| Securities1, 2 | 50,406 | 48,987 |
| Investments1, 2 | 20 | 470 |
| Other financial assets1 | 4,042 | 2,493 |
| Deferred tax assets | 3,634 | 2,671 |
| Total non-current assets | 163,104 | 153,674 |
| Current assets | ||
| Inventories1 | 44,448 | 40,480 |
| Trade receivables2 | 36,282 | 38,450 |
| Securities2 | 2,200 | 203 |
| Other financial assets | 2,046 | 2,905 |
| Other receivables | 8,172 | 7,007 |
| Income tax assets | 478 | 61 |
| Cash and cash equivalents2 | 23,571 | 27,949 |
| 117,197 | 117,055 | |
| Non-current assets held for sale | 0 | 121 |
| Total current assets | 117,197 | 117,176 |
| Total assets | 280,301 | 270,850 |
Cf. note 3 2 Cf. note 4
| Equity and liabilities | 06/30/2014 thousand Euro |
12/31/2013 thousand Euro |
|---|---|---|
| Equity | ||
| Equity attributable to owners of the parent | ||
| Share capital1 | 19,762 | 19,675 |
| Treasury stock1 | –281 | –328 |
| Additional paid-in capital | 89,082 | 88,161 |
| Surplus reserve | 102 | 102 |
| Other equity components | –3,457 | –3,920 |
| Retained earnings | 90,133 | 86,868 |
| 195,342 | 190,559 | |
| Non-controlling interests | 2,345 | 2,127 |
| Total equity | 197,687 | 192,686 |
| Liabilities | ||
| Non-current liabilities | ||
| Provisions | 400 | 492 |
| Financial liabilities2 | 37,642 | 37,491 |
| Other liabilities | 4,551 | 4,650 |
| Deferred tax liabilities | 3,778 | 3,049 |
| Total non-current liabilities | 46,371 | 45,682 |
| Current liabilities | ||
| Provisions | 10,116 | 7,505 |
| Income tax liabilities | 1,367 | 1,613 |
| Financial liabilities2 | 154 | 303 |
| Trade payables2 | 20,602 | 19,492 |
| Other liabilities | 4,004 | 3,569 |
| Total current liabilities | 36,243 | 32,482 |
| Total liabilities | 82,614 | 78,164 |
| Total equity and liabilities | 280,301 | 270,850 |
Cf. note 3
Cf. note 4
| For the period April 1 through June 30 | 04/01 – 06/30/2014 thousand Euro |
in percent of sales |
04/01 – 06/30/2013 thousand Euro |
in percent of sales |
Change |
|---|---|---|---|---|---|
| Sales | 51,928 | 100.0 | 47,071 | 100.0 | 10.3% |
| Cost of sales | –30,385 | –58.5 | –28,727 | –61.0 | 5.8% |
| Gross profit | 21,543 | 41.5 | 18,343 | 39.0 | 17.4% |
| Research and development expenses | –8,094 | –15.6 | –9,031 | –19.2 | –10.4% |
| Distribution expenses | –4,525 | –8.7 | –4,638 | –9.9 | –2.4% |
| Administrative expenses | –4,548 | –8.8 | –4,130 | –8.8 | 10.1% |
| Operating income before other operating expenses (–)/income |
4,376 | 8.4 | 544 | 1.2 | >100.0% |
| Exchange rate losses (–)/gains | 52 | 0.1 | –58 | –0.1 | n/a |
| Other operating income | 1,358 | 2.6 | 1,425 | 3.0 | –4.7% |
| Other operating expenses | –689 | –1.3 | –335 | –0.7 | >100.0% |
| Earnings before interest and taxes (EBIT) | 5,097 | 9.8 | 1,576 | 3.3 | >100.0% |
| Finance income | 583 | 1.1 | 582 | 1.2 | 0.3% |
| Finance cost | –441 | –0.8 | –567 | –1.2 | –22.2% |
| Earnings before taxes | 5,239 | 10.1 | 1,590 | 3.4 | >100.0% |
| Taxes on income | |||||
| Current income tax expense | –404 | –0.8 | –514 | –1.1 | –21.4% |
| Deferred taxes | –670 | –1.3 | 153 | 0.3 | n/a |
| –1,073 | –2.1 | –361 | –0.8 | >100.0% | |
| Consolidated net income | 4,166 | 8.0 | 1,229 | 2.6 | >100.0% |
| Consolidated net income attributable to | |||||
| Owners of the parent | 4,034 | 7.8 | 1,056 | 2.2 | >100.0% |
| Non-controlling interests | 131 | 0.2 | 173 | 0.4 | –24.2% |
| Earnings per share | Euro | Euro | |||
| Basic earnings per share | 0.21 | 0.05 | >100.0% | ||
| Fully diluted earnings per share | 0.20 | 0.05 | >100.0% |
| For the period April 1 through June 30 | 04/01 – 06/30/2014 thousand Euro |
04/01 – 06/30/2013 thousand Euro |
|---|---|---|
| Consolidated net income | 4,166 | 1,229 |
| 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 | 39 | –61 |
| Foreign currency adjustments affecting deferred taxes | 139 | –289 |
| Deferred tax (on foreign currency adjustments affecting deferred taxes) | –35 | 73 |
| Value differences relating to hedges | –43 | 178 |
| Deferred tax (on value differences relating to hedges) | 14 | –58 |
| Changes in market value of available-for-sale financial assets | 132 | –677 |
| Deferred tax (on changes in market value of available-for-sale financial assets) | –43 | 280 |
| Items that will not be reclassified to the income statement in future periods including respective tax effects |
||
| Actuarial gains from pension plans | 9 | 42 |
| Deferred tax on actuarial gains from pension plans | –3 | –13 |
| Other comprehensive income after taxes | 209 | –525 |
| Total comprehensive income after taxes | 4,375 | 704 |
| Total comprehensive income attributable to | ||
| Owners of the parent | 4,243 | 543 |
| Non-controlling interests | 132 | 161 |
| For the period January 1 through June 30 | 01/01 – 06/30/2014 thousand Euro |
in percent of sales |
01/01 – 06/30/2013 thousand Euro |
in percent of sales |
Change |
|---|---|---|---|---|---|
| Sales | 101,296 | 100.0 | 90,213 | 100.0 | 12.3% |
| Cost of sales | –59,205 | –58.4 | –55,030 | –61.0 | 7.6% |
| Gross profit | 42,091 | 41.6 | 35,182 | 39.0 | 19.6% |
| Research and development expenses | –16,756 | –16.5 | –17,814 | –19.7 | –5.9% |
| Distribution expenses | –9,287 | –9.2 | –9,249 | –10.3 | 0.4% |
| Administrative expenses | –8,856 | –8.7 | –8,213 | –9.1 | 7.8% |
| Operating income before other operating expenses (–)/income |
7,192 | 7.1 | –94 | –0.1 | n/a |
| Exchange rate losses (–)/gains | –148 | –0.1 | 66 | 0.1 | n/a |
| Other operating income | 2,231 | 2.2 | 2,455 | 2.7 | –9.1% |
| Other operating expenses | –952 | –0.9 | –592 | –0.7 | 60.9% |
| Earnings before interest and taxes (EBIT) | 8,323 | 8.2 | 1,836 | 2.0 | >100.0% |
| Finance income | 1,225 | 1.2 | 1,044 | 1.2 | 17.4% |
| Finance expenses | –892 | –0.9 | –1,132 | –1.3 | –21.2% |
| Earnings before taxes | 8,656 | 8.5 | 1,748 | 1.9 | >100.0% |
| Taxes on income | |||||
| Current income tax expense | –948 | –0.9 | –1,018 | –1.1 | –7.0% |
| Deferred taxes1 | 459 | 0.5 | 1,007 | 1.1 | –54.5% |
| –489 | –0.5 | –11 | 0.0 | >100.0% | |
| Consolidated net income | 8,167 | 8.1 | 1,737 | 1.9 | >100.0% |
| Consolidated net income attributable to | |||||
| Owners of the parent | 8,068 | 8.0 | 1,478 | 1.6 | >100.0% |
| Non-controlling interests | 99 | 0.1 | 259 | 0.3 | –61.8% |
| Earnings per share | Euro | Euro | |||
| Basic earnings per share | 0.42 | 0.08 | >100.0% | ||
| Fully diluted earnings per share | 0.41 | 0.08 | >100.0% |
Cf. note 3
| For the period January 1 through June 30 | 01/01 – 06/30/2014 thousand Euro |
01/01 – 06/30/2013 thousand Euro |
|---|---|---|
| Consolidated net income | 8,167 | 1,737 |
| 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 | 7 | –65 |
| Foreign currency adjustments affecting deferred taxes | 135 | 104 |
| Deferred tax (on foreign currency adjustments affecting deferred taxes) | –34 | –26 |
| Value differences relating to hedges | –72 | 252 |
| Deferred tax (on value differences relating to hedges) | 24 | –71 |
| Changes in market value of available-for-sale financial assets | 566 | –639 |
| Deferred tax (on changes in market value of available-for-sale financial assets) | –186 | 233 |
| Items that will not be reclassified to the income statement in future periods including respective tax effects |
||
| Actuarial gains from pension plans | 18 | 42 |
| Deferred tax on actuarial gains from pension plans | –6 | –13 |
| Other comprehensive income after taxes | 452 | –183 |
| Total comprehensive income after taxes | 8,619 | 1,554 |
| Total comprehensive income attributable to | ||
| Owners of the parent | 8,530 | 1,325 |
| Non-controlling interests | 89 | 229 |
| 01/01– 06/30/2014 thousand Euro |
01/01– 06/30/2013 thousand Euro1 |
04/01– 06/30/2014 thousand Euro |
04/01– 06/30/2013 thousand Euro1 |
|
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Consolidated net income | 8,167 | 1,737 | 4,166 | 1,229 |
| Depreciation and amortization | 11,816 | 11,399 | 5,981 | 5,702 |
| Financial result | –333 | 88 | –142 | –15 |
| Other non-cash income (–)/expense | –953 | –1,109 | 229 | –185 |
| Current income tax | 948 | 1,018 | 404 | 513 |
| Expenses for stock option plans/stock award plans/share matching plans | 195 | 210 | 88 | 101 |
| Changes in pension provisions | –74 | –199 | –59 | –154 |
| Changes in net working capital: | ||||
| Trade receivables | 2,622 | –3,076 | 981 | –826 |
| Inventories | –3,968 | –2,319 | –3,229 | –627 |
| Other assets | –214 | –1,941 | 389 | –1,721 |
| Trade payables | 468 | 113 | –1,794 | –2,364 |
| Other provisions and other liabilities | 2,264 | 1,601 | 936 | –625 |
| Income tax payments | –1,932 | –676 | –456 | –222 |
| Interest paid | –892 | –1,132 | –441 | –567 |
| Interest received | 1,182 | 1,034 | 657 | 572 |
| Cash flow from operating activities | 19,296 | 6,748 | 7,710 | 811 |
1 Adjustment of prior-year amounts; please also refer to note 1 in the condensed notes to consolidated financial statements
| 01/01– 06/30/2014 thousand Euro |
01/01– 06/30/2013 thousand Euro1 |
04/01– 06/30/2014 thousand Euro |
04/01– 06/30/2013 thousand Euro1 |
|
|---|---|---|---|---|
| Cash flow from investing activities | ||||
| Capital expenditures for intangible assets | –982 | –794 | –497 | –418 |
| Capital expenditures for property, plant and equipment | –16,691 | –7,860 | –9,156 | –5,263 |
| Payments for (–)/Disposal of non-current assets held for sale | 2 | –878 | 0 | –753 |
| Disposal of non-current assets | 964 | 530 | 37 | 56 |
| Payments for the acquisition of shares in subsidiaries plus acquired cash and cash equivalents |
546 | 0 | 546 | 0 |
| Payments for (–)/Disposal of securities | –2,850 | –26,446 | –1,770 | –9,878 |
| Disposal of investments | 0 | 1,709 | 0 | 1,709 |
| Payments for (–)/Payments from other non-current financial assets | –255 | –17 | –255 | –9 |
| Cash flow from investing activities | –19,266 | –33,755 | –11,095 | –14,555 |
| Cash flow from financing activities | ||||
| Repayment of non-current liabilities | –40 | –40 | –40 | –40 |
| Repayment of current liabilities to banks | –150 | –141 | –427 | –37 |
| Purchase of treasury shares | 0 | –1,525 | 0 | 0 |
| Share-based remuneration/Issue of treasury shares | 336 | 457 | 285 | 274 |
| Capital increase from conditional capital | 535 | 41 | 535 | 41 |
| Dividend payment | –4,844 | –4,814 | –4,844 | –4,814 |
| Dividend payment to non-controlling shareholders | –367 | –400 | –100 | –316 |
| Increase of majority stake | 0 | –570 | 0 | 0 |
| Other changes | 43 | –4 | 43 | 0 |
| Cash flow from financing activities | –4,487 | –6,996 | –4,548 | –4,892 |
| Decrease in cash and cash equivalents | –4,457 | –34,003 | –7,933 | –18,636 |
| Effect of exchange rate changes on cash and cash equivalents | 79 | –30 | 112 | –154 |
| Cash and cash equivalents at beginning of reporting period | 27,949 | 55,576 | 31,392 | 40,333 |
| Cash and cash equivalents at end of reporting period | 23,571 | 21,543 | 23,571 | 21,543 |
1 Adjustment of prior-year amounts; please also refer to note 1 in the condensed notes to consolidated financial statements
| Non controlling |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity attributable to owners of the parent | Other equity components | interests | Group | ||||||||||
| 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 | 1,478 | 1,478 | 259 | 1,737 | |||||||||
| Other comprehensive income for the period | –406 | 181 | 43 | 29 | –153 | –30 | –183 | ||||||
| Total comprehensive income | –406 | 181 | 43 | 29 | 1,478 | 1,325 | 229 | 1,554 | |||||
| Share-based remuneration | 101 | 356 | 457 | 457 | |||||||||
| Capital increase from conditional capital | 11 | 11 | 30 | 41 | 41 | ||||||||
| 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 | ||||||||||
| Stock option and stock award expenses | 210 | 210 | 210 | ||||||||||
| Increase of majority stake | –85 | –85 | –485 | –570 | |||||||||
| June 30, 2013 | 19,627 | 19,627 | –328 | 87,855 | 102 | –335 | –1,125 | –1,591 | –504 | 78,905 | 182,607 | 1,931 | 184,538 |
| 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 | 8,068 | 8,068 | 99 | 8,167 | |||||||||
| Other comprehensive income for the period | 380 | –48 | 118 | 12 | 462 | –10 | 452 | ||||||
| Total comprehensive income | 380 | –48 | 118 | 12 | 8,068 | 8,530 | 89 | 8,619 | |||||
| Share-based remuneration/Issue of treasury shares | 47 | 289 | 336 | 336 | |||||||||
| Capital increase from conditional capital | 88 | 88 | 447 | 535 | 535 | ||||||||
| Transaction costs | –10 | –10 | –10 | ||||||||||
| 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 option plans/stock award plans/share matching plans | 195 | 195 | 195 | ||||||||||
| Other changes | 41 | 41 | 13 | 54 | |||||||||
| June 30, 2014 | 19,762 | 19,762 | –281 | 89,082 | 102 | 458 | –1,167 | –2,073 | –676 | 90,133 | 195,342 | 2,345 | 197,687 |
The condensed interim consolidated financial statements for the 1st half-year 2014 were released for publication pursuant to Management Board resolution in August 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 June 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.
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 6-month financial statements as of June 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 6-month financial statements.
| thousand Euro | 04/01 – 06/30/2013 before adjustments |
Corrections pursuant to IAS 8 |
04/01 – 06/30/2013 after adjustments |
|---|---|---|---|
| Consolidated statement of cash flows | |||
| Depreciation and amortization | 4,657 | 1,045 | 5,702 |
| Changes in inventories | –369 | –258 | –627 |
| Cash flow from operating activities | 24 | 787 | 811 |
| Capital expenditures for property, plant and equipment | –4,476 | –787 | –5,263 |
| Cash flow from investing activities | –13,768 | –787 | –14,555 |
| thousand Euro | 01/01 – 06/30/2013 before adjustments |
Corrections pursuant to IAS 8 |
01/01 – 06/30/2013 after adjustments |
|---|---|---|---|
| Consolidated statement of cash flows | |||
| Depreciation and amortization | 9,309 | 2,090 | 11,399 |
| Changes in inventories | –1,803 | –516 | –2,319 |
| Cash flow from operating activities | 5,174 | 1,574 | 6,748 |
| Capital expenditures for property, plant and equipment | –6,286 | –1,574 | –7,860 |
| Cash flow from investing activities | –32,181 | –1,574 | –33,755 |
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 half-year 2014.
The Elmos Group's basis of consolidation was expanded by two companies in the first half-year 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 to this effect. 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 | |
| 148 (thereof 143 from the disclosure | |
| Intangible assets | of hidden reserves) |
| Property, plant and equipment | 1,128 |
| Cash | 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 obtained upon the transition from investment to subsidiary | 567 |
| Cash outflow | –21 |
| Actual cash inflow due to business acquisition | 546 |
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 30 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.
The economic framework for 2014 is subject to uncertainty in many respects. The further development of the global and regional crises, for example the crises of certain euro member states or the political situation in the Middle East and in Eastern Europe as well as the future market situation in China cannot be predicted so far. The associated effects on the capital and raw materials markets are equally hard to assess. 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 June 30, 2014 and 2013, respectively) as well as on assets of the Group's business segments (as of June 30, 2014 and December 31, 2013).
| 1st half-year as of June 30, 2014 | Semiconductor thousand Euro |
Micromechanics thousand Euro |
Consolidation thousand Euro |
Group thousand Euro |
|---|---|---|---|---|
| Sales | ||||
| Third-party sales | 92,686 | 8,610 | 0 | 101,296 |
| Inter-segment sales | 195 | 673 | –8681 | 0 |
| Total sales | 92,881 | 9,283 | –868 | 101,296 |
| Earnings | ||||
| Segment earnings | 7,086 | 1,237 | 0 | 8,323 |
| Finance income | 1,225 | |||
| Finance costs | –892 | |||
| Earnings before taxes | 8,656 | |||
| Taxes on income | –489 | |||
| Consolidated net income including non-controlling interests | 8,167 | |||
| Assets | ||||
| Segment assets | 235,952 | 16,646 | 27,6832 | 280,281 |
| Investments | 20 | 0 | 0 | 20 |
| Total assets | 280,301 | |||
| Other segment information | ||||
| Additions of intangible assets and property, plant and equipment |
21,318 | 160 | 0 | 21,478 |
| Depreciation and amortization | 13,652 | 387 | 0 | 14,039 |
Sales from inter-segment transactions are eliminated for consolidation purposes.
2 Non-attributable assets as of June 30, 2014 include cash and cash equivalents (23,571 thousand Euro), income tax assets (478 thousand Euro), and deferred tax assets (3,634 thousand Euro), as these assets are controlled at group level.
| 1st half-year as of June 30, 2013 | Semiconductor thousand Euro3 |
Micromechanics thousand Euro |
Consolidation thousand Euro |
Group thousand Euro3 |
|---|---|---|---|---|
| Sales | ||||
| Third-party sales | 82,371 | 7,842 | 0 | 90,213 |
| Inter-segment sales Total sales |
220 82,591 |
409 8,251 |
–6291 –629 |
0 90,213 |
| Earnings | ||||
| Segment earnings | 1,122 | 714 | 0 | 1,836 |
| Finance income | 1,044 | |||
| Finance costs | –1,132 | |||
| Earnings before taxes | 1,748 | |||
| Taxes on income | –11 | |||
| Consolidated net income including non-controlling interests | 1,737 | |||
| Assets (as of December 31, 2013) | ||||
| Segment assets | 223,533 | 16,166 | 30,6812 | 270,380 |
| Investments | 470 | 0 | 0 | 470 |
| Total assets | 270,850 | |||
| Other segment information | ||||
| Additions of intangible assets and property, plant and equipment |
8,564 | 90 | 0 | 8,654 |
| Depreciation and amortization | 11,063 | 336 | 0 | 11,399 |
1 Sales from inter-segment transactions are 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 assets (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 | Half-year ended 06/30/2014 thousand Euro |
Half-year ended 06/30/2013 thousand Euro |
|---|---|---|
| Germany | 34,496 | 30,689 |
| Other EU countries | 25,802 | 25,889 |
| U.S.A. | 9,661 | 6,172 |
| Asia/Pacific | 24,798 | 21,135 |
| Others | 6,539 | 6,328 |
| Consolidated sales | 101,296 | 90,213 |
| Geographical distribution of non-current assets | 06/30/2014 thousand Euro |
12/31/2013 thousand Euro |
|---|---|---|
| Germany | 146,984 | 139,613 |
| Other EU countries | 4,060 | 4,297 |
| U.S.A. | 4,310 | 4,511 |
| Others | 74 | 89 |
| Non-current assets | 155,428 | 148,510 |
| Development of selected non-current assets January 1 through |
Net book value 01/01/2014 |
Reclassification | Additions | Disposals/Other movements |
Net book value 6/30/2014 |
|
|---|---|---|---|---|---|---|
| June 30 | thousand Euro | thousand Euro | thousand Euro | thousand Euro | amortization thousand Euro |
thousand Euro |
| Intangible assets | 26,664 | 25 | 1,591 | 558 | 2,916 | 24,806 |
| Property, plant and equipment | 72,388 | –25 | 19,887 | 931 | 11,123 | 80,196 |
| Securities | 48,987 | 0 | 5,350 | 3,931 | 0 | 50,406 |
| Investments | 470 | 0 | 0 | 450 | 0 | 20 |
| Other financial assets | 2,493 | 0 | 1,632 | 83 | 0 | 4,042 |
| 151,002 | 0 | 28,460 | 5,953 | 14,039 | 159,470 |
The item "Disposals/Other movements" includes negative currency adjustments in the amount of 42 thousand Euro.
| 06/30/2014 thousand Euro |
12/31/2013 thousand Euro |
|
|---|---|---|
| Raw materials | 3,804 | 3,866 |
| Work in process | 34,507 | 28,731 |
| Finished goods and merchandise | 6,137 | 7,883 |
| 44,448 | 40,480 |
As of June 30, 2014, the share capital of Elmos Semiconductor AG consists of 19,762,458 shares. The Company holds 280,825 treasury shares.
As of June 30, 2014, altogether 894,519 options from stock option plans are outstanding. The options are attributable to the separate tranches as follows:
| 2009 | 2010 | 2011 | 2012 | Total | |
|---|---|---|---|---|---|
| Year of resolution and issue | 2009 | 2010 | 2011 | 2012 | |
| Exercise price in Euro | 3.68 | 7.49 | 8.027 | 7.42 | |
| Blocking period ex issue (years) | 3 | 4 | 4 | 4 | |
| Exercise period after blocking period (years) | 3 | 3 | 3 | 3 | |
| Options outstanding as of 12/31/2013 (number) | 140,910 | 235,128 | 243,510 | 394,693 | 1,014,241 |
| Exercised 1/1 – 6/30/2014 (number) | 52,900 | 55,173 | 0 | 0 | 108,073 |
| Forfeited 1/1 – 6/30/2014 (number) | 1,550 | 5,315 | 3,025 | 1,759 | 11,649 |
| Options outstanding as of 6/30/2014 (number) | 86,460 | 174,640 | 240,485 | 392,934 | 894,519 |
| Options exercisable as of 6/30/2014 (number) | 86,460 | 174,640 | 0 | 0 | 261,100 |
The first half-year 2014 includes 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 will probably be consumed 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 half-year financial statements is undiminished.
| 06/30/2014 | 12/31/2013 | |||
|---|---|---|---|---|
| thousand Euro | Book value | Fair value | Book value | Fair value |
| Financial assets | ||||
| Investments | 20 | 20 | 470 | 470 |
| Long-term securities | 50,406 | 50,406 | 48,987 | 48,987 |
| Short-term securities | 2,200 | 2,200 | 203 | 203 |
| Trade receivables | 36,282 | 36,282 | 38,450 | 38,450 |
| Cash and cash equivalents | 23,571 | 23,571 | 27,949 | 27,949 |
| Other financial assets | ||||
| Other receivables and assets | 2,260 | 2,260 | 2,639 | 2,639 |
| Other loans | 3,748 | 3,748 | 2,711 | 2,711 |
| Call option | 48 | 48 | 48 | 48 |
| Embedded derivatives | 32 | 32 | 0 | 0 |
| Earn-out | 0 | 0 | 0 | 0 |
| Financial liabilities | ||||
| Trade payables | 20,602 | 20,602 | 19,492 | 19,492 |
| Liabilities to banks | 37,605 | 38,806 | 37,795 | 38,811 |
| Other financial liabilities | ||||
| Miscellaneous financial liabilities | 338 | 338 | 429 | 429 |
| Put option | 2,392 | 2,392 | 2,392 | 2,392 |
| Hedged derivatives (short-term) | 591 | 591 | 522 | 522 |
| Hedged derivatives (long-term) | 1,146 | 1,146 | 1,144 | 1,144 |
| Forward exchange contracts/Foreign exchange options | 20 | 20 | 0 | 0 |
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
| Level 1 | Level 2 | Level 3 | |
|---|---|---|---|
| Securities | thousand Euro | thousand Euro | thousand Euro |
| January 1, 2014 | 42,691 | 0 | 0 |
| Addition of securities (long-term) | 5,350 | 0 | 0 |
| Market valuation of securities (long-term) | 567 | 0 | 0 |
| Market valuation of securities (short-term) | –2 | 0 | 0 |
| June 30, 2014 | 48,606 | 0 | 0 |
| Investments | |||
| January 1, 2014 | 0 | 0 | 470 |
| Disposal of investments | 0 | 0 | –450 |
| June 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 | –72 | 0 |
| June 30, 2014 | 0 | –1,737 | 0 |
| Call option | |||
| January 1, 2014 | 0 | 0 | 48 |
| June 30, 2014 | 0 | 0 | 48 |
| Put option | |||
| January 1, 2014 | 0 | 0 | –2,392 |
| June 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 | –20 | 0 |
| June 30, 2014 | 0 | –20 | 0 |
| Embedded derivatives | |||
| January 1, 2014 | 0 | 0 | 0 |
| Addition of embedded derivatives | 0 | 32 | 0 |
| June 30, 2014 | 0 | 32 | 0 |
As of June 30, 2014, the Group held the following financial instruments measured at fair value:
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 June 30, 2014:
| Date Place |
Name | Function | Transaction | Number | Price/Basic price (Euro) |
Total volume (Euro) |
|---|---|---|---|---|---|---|
| 06/2/2014 off-market |
Thomas Lehner | Supervisory Board member |
Sale of Elmos shares from exercise of stock options |
2,500 | 15.63 | 39,081 |
| 06/11/2014 off-market |
Dr. Peter Geiselhart | Management Board member |
Purchase of Elmos shares |
654 | 15.27 | 9,989 |
| 06/11/2014 off-market |
Reinhard Senf | Management Board member |
Purchase of Elmos shares |
654 | 15.27 | 9,989 |
| 06/18/2014 off-market |
Reinhard Senf | Management Board member |
Sale of Elmos shares from exercise of stock options |
5,000 | 15.07 | 73,333 |
| 06/24/2014 off-market |
ZOE-VVG GmbH | Legal entity closely related to the Supervisory Board chairman |
Disposal1 | 742,894 | not quantifiable |
|
| 06/24/2014 off-market |
Weyer Beteiligungs gesellschaft mbH |
Legal entity closely related to a Supervisory Board member |
Disposal1 | 392,895 | not quantifiable |
|
| 06/27/2014 off-market |
Dr. Anton Mindl | CEO | Purchase of Elmos shares |
654 | 15.27 | 9,989 |
| 06/27/2014 off-market |
Nicolaus Graf von Luckner |
Management Board member |
Purchase of Elmos shares |
654 | 15.27 | 9,989 |
1 The transfer of the shares took place without valuation for the settlement of the right to recover possession owned by previous shareholder 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 halfyear 2014.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Dortmund, August 6, 2014
Dr. Anton Mindl Dr. Arne Schneider Reinhard Senf Dr. Peter Geiselhart
We have reviewed the condensed interim consolidated financial statements – comprising condensed statement of financial position, condensed statement of comprehensive income, condensed statement of cash flows, condensed statement of changes in equity, and selected explanatory notes – and the interim group management report of Elmos Semiconductor AG for the period from January 1 to June 30, 2014 that are required components of a half-year financial report pursuant to Section 37w WpHG (Securities Trading Act).
The preparation of the condensed interim consolidated financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the European Union and of the interim group management report in accordance with the regulations of the WpHG applicable to interim group management reports is the responsibility of the company's management. It is our responsibility to issue a report on the condensed interim consolidated financial statements and the interim group management report based on our review.
We have performed our review of the condensed interim consolidated financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements as defined by the Institut der Wirtschaftsprüfer (IDW). Those standards require the review to be planned and conducted in such a way that allows us to rule out the possibility with reasonable assurance that the condensed interim consolidated financial statements have not been prepared in material respects in accordance with the IFRS applicable to interim financial reporting as adopted by the European Union and that the interim group management report has not been prepared in material respects in accordance with the regulations of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the degree of assurance attainable in a financial statement audit. As we have not performed a financial statement audit in accordance with our engagement, we cannot issue an audit opinion.
No matters have come to our attention on the basis of our review that lead us to presume that the condensed interim consolidated financial statements have not been prepared in all material respects in accordance with the IFRS applicable to interim financial reporting as adopted by the European Union or that the interim group management report has not been prepared in all material respects in accordance with the regulations of the WpHG applicable to interim group management reports.
Düsseldorf, August 6, 2014
Warth & Klein Grant Thornton AG Wirtschaftsprüfungsgesellschaft
Dr. Thomas Senger Ulrich Diersch Wirtschaftsprüfer Wirtschaftsprüfer
| Quarterly results Q2/20141 | August 6, 2014 |
|---|---|
| Quarterly results Q3/20141 | November 5, 2014 |
| Equity Forum in Frankfurt | November 24-26, 2014 |
1 The German Securities Trading Act (WpHG) 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 will 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 dates and news on the Company's website (www.elmos.com). Conference calls are usually held on the day after the announcement of quarterly results.
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 August 6, 2014 in German and English. 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.
This English translation is for convenience purposes only.
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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