AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Elmos Semiconductor SE

Quarterly Report Aug 7, 2013

137_10-q_2013-08-07_74b08c25-e195-4516-bcb4-51b59ea02dcd.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

360° Elmos

Half-year report HY1 2013

Overview

In focus

  • -> Positive sales performance due to ramp-up of new products − Q2 2013 vs. Q1 2013 plus 9.1%
  • -> Sales in Asia grew by 12.1% on half-year comparison
  • -> Significant improvement of earnings expected for the second half-year 2013
  • -> Forecast for full year 2013 confirmed
3 months – 6 months –
year-over-year comparison year-over-year comparison
in million Euro or percent
unless otherwise indicated
4/1 –
6/30/2013
4/1 –
6/30/20121
Change 1/1 –
6/30/2013
1/1 –
6/30/20121
Change
Sales 47.1 45.5 3.5% 90.2 92.4 −2.4%
Semiconductor 43.3 40.6 6.6% 82.4 82.5 −0.2%
Micromechanics 3.8 4.9 −22.5% 7.8 9.9 −20.5%
Gross profit 18.3 18.0 1.7% 35.2 36.3 −3.0%
in percent of sales 39.0% 39.6% 39.0% 39.2%
R&D expenses 9.0 9.1 −1.1% 17.8 17.9 −0.4%
in percent of sales 19.2% 20.1% 19.7% 19.4%
Operating income before other operating expenses/income 0.5 0.4 33.8% −0.1 1.1 n/a
in percent of sales 1.2% 0.9% −0.1% 1.2%
Exchange rate gains (−)/losses 0.1 −0.1 n/a −0.1 0.0 n/a
Other operating expenses/income (−) −1.1 −2.9 −61.9% −1.9 −3.3 −42.9%
EBIT 1.6 3.4 −53.1% 1.8 4.4 −57.9%
in percent of sales 3.3% 7.4% 2.0% 4.7%
Consolidated net income after non-controlling interests 1.1 2.9 −63.9% 1.5 3.6 −58.5%
in percent of sales 2.2% 6.4% 1.6% 3.9%
Basic earnings per share (in Euro) 0.05 0.15 −63.7% 0.08 0.18 −58.4%
Cash flow from operating activities 0.0 4.5 −99.5% 5.2 5.0 3.1%
Capital expenditures for intangible assets and property, plant and equipment 4.9 5.0 −2.4% 7.1 8.3 −14.9%
in percent of sales 10.4% 11.0% 7.8% 9.0%
Free cash flow 2 −13.7 −3.4 >100.0% −27.0 −6.2 >100.0%
Adjusted free cash flow3 −3.2 −0.5 >100.0% −0.2 −3.3 94.0%
in million Euro or percent
unless otherwise indicated
6/30/2013 12/31/2012 Change
Equity 184.5 189.64 −2.7%
in percent of total assets 69.0% 69.6% 70,1%
Employees (reporting date) 1,047 1,032 1.5%

1 Adjustment of prior-year amounts due to amendment to IAS 19; 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

4 Adjustment due to amendment to IAS 19; please refer to note 1 in the condensed notes to the consolidated financial statements

Due to calculation processes, tables and references may produce rounding differences from the mathematically exact values (monetary units, percentage statements, etc.).

Interim group management report

Course of business

Sales development and order situation

Sales of the first half-year 2013 were slightly below those of the first half-year 2012 as expected, going down by 2.4% to 90.2 million Euro (HY1 2012: 92.4 million Euro). This is accounted for by the uncertain European economy which negatively affected sales primarily over the first quarter of 2013.

However, a positive trend has come up in the course of the year 2013: In the second quarter of 2013, product ramp-ups and replacements of product generations contribute to the pleasing growth in sales. Compare to the previous quarter, sales were up by 9.1% to 47.1 million Euro (Q1 2013: 43.1 million Euro).

The trend that combines weak business with European automotive customers and a pleasant development in Asia is still determining sales figures of carmakers and their suppliers throughout the industry. However, the growth in Asia cannot fully compensate for the declining sales of Elmos in Europe. The Asia/Pacific share in sales rose from 20.4% in the first half-year 2012 to 23.4% in the half-year 2013 under review.

While the semiconductor segment almost reaches the level of the prior-year period in the first half-year 2013 with sales of 82.4 million Euro (HY1 2012: 82.5 million) based on a strong second quarter 2013, the sales performance in the micromechanics segment was in sharp decline. Segment sales dropped 20.5% from 9.9 million Euro in the first half-year 2012 to 7.8 million Euro in the first half-year 2013. The reason for this development in micromechanics is the fact that some products will phase out in fiscal year 2013 and successor product generations will only be ramped up at the end of 2013 or rather in 2014.

Sales by region HY1 2013

The order intake fulfills the expectations that form the basis of the forecast at present. The ratio of orders received to sales, the so-called book-to-bill, was above one at the end of the second quarter of 2013.

Third-party sales 1/1 – 6/30/2013
thousand Euro
in percent
of sales
1/1 – 6/30/2012
thousand Euro
in percent
of sales
Change
Germany 30,689 34.0% 27,846 30.1% 10.2%
Other EU countries 25,889 28.7% 31,357 33.9% −17.4%
U.S.A. 6,172 6.9% 7,630 8.3% −19.1%
Asia/Pacific 21,135 23.4% 18,848 20.4% 12.1%
Others 6,328 7.0% 6,733 7.3% −6.0%
Consolidated sales 90,213 100.0% 92,414 100.0% −2.4%

Profit situation, finances and asset situation

The cost of sales was reduced by 2.0% to 55.0 million Euro in the first half-year 2013, roughly proportionate to sales. The gross margin remained stable, at the level of the prior-year period of comparison, at 39.0% (HY1 2012: 39.2%). The gross profit reached 35.2 million Euro in the first half-year 2013 (HY1 2012: 36.3 million Euro). The gross margin is affected by price effects becoming effective at the beginning of the year as well as by changes in the product mix.

In the course of the year 2013 so far, the gross margin could not be increased yet as the inventory development could not keep track with the sales increase in the second quarter of 2013 and as negative cost effects from the 6 to 8-inch production conversion still have an impact.

Research and development expenses remained stable yearover-year at 17.8 million Euro for the first half-year 2013 (HY1 2012: 17.9 million) despite the full consolidation of MAZ Mikroelektronik-Anwendungszentrum GmbH im Land Brandenburg, Berlin (MAZ), in effect since April 1, 2012. The R&D ratio of 19.7% of sales also stayed almost the same (HY1 2012: 19.4%).

Based on increased activity in the Asian region, distribution expenses went up slightly by 3.3% to 9.2 million Euro (HY1 2012: 9.0 million Euro). Administrative expenses decreased from 8.3 million Euro in the first half-year 2012 by 1.4% to 8.2 million Euro in the half-year under review.

Analogous to the gross profit, the operating income went down by 1.2 million Euro to −0.1 million Euro (HY1 2012: 1.1 million Euro). Yet a positive trend can be identified in the development of the quarters: In the first quarter of 2013, the operating income was still negative at −0.6 million Euro and could be improved to 0.5 million Euro over the second quarter of 2013. This is accounted for by the higher gross profit and the lower operating costs in relation to sales.

Earnings before interest and taxes (EBIT) were reduced to 1.8 million Euro (HY1 2012: 4.4 million Euro), due on the one hand to a 1.1 million Euro lower gross profit in the reporting period compared to the first half-year 2012 and on the other hand to the income from the revaluation of the old shares in MAZ, included in the prior-year period's other operating income. First-time consolidation of MAZ in the second quarter of 2012 had resulted in income of 1.8 million Euro. The EBIT margin reached 2.0% in the first six months of 2013 (HY1 2012: 4.7%).

The consolidated net income attributable to owners of the parent amounted to 1.5 million Euro (HY1 2012: 3.6 million Euro). This equals basic earnings per share of 0.08 Euro (HY1 2012: 0.18 Euro).

The cash flow from operating activities was roughly stable in year-over-year comparison of the six-month period, reaching 5.2 million Euro in the first half-year 2013 (HY1 2012: 5.0 million Euro). Capital expenditures for intangible assets and property, plant and equipment were 7.1 million Euro in the first halfyear 2013, or 7.8% of sales (HY1 2012: 8.3 million Euro, or 9.0% of sales).

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) came to −0.2 million Euro in the first halfyear 2013 as opposed to −3.3 million Euro in the first half-year 2012.

In addition to cash and cash equivalents in the amount of 21.5 million Euro, the Company holds 52.4 million Euro in long-term and short-term securities (December 31, 2012: 55.6 million Euro and 26.6 million Euro respectively). Cash and cash equivalents plus fungible securities amounted to 73.9 million Euro as of June 30, 2013 altogether, lower by comparison to December 31, 2012 (82.2 million Euro). Net cash also went down from December 31, 2012 (39.3 million Euro), to 31.3 million Euro. The main reasons for this are the payment of the dividend, the share buyback scheme, and capital expenditures. The equity ratio of 69.0% as of June 30, 2013 remained stable (December 31, 2012: 69.6%).

Economic environment

The development of the global auto market continues to be inconsistent.

The Western European car market was determined by persisting weakness over the first half-year 2013. 6.1 million vehicles were newly registered in Western Europe altogether, equaling a 6.6% decline from the already weak prior-year period of comparison. All relevant European markets with the sole exception of Great Britain (+10.0%) recorded declining figures of varying significance. Germany dropped 8.1%, France lost 11.2%, Italy was down by 10.3%, and Spain added another loss of 4.9% to its weak prior-year level. These figures are reported by the European Automobile Manufacturers' Association (ACEA).

By contrast, the development in countries outside Europe is more pleasant in most cases. According to the German Association of the Automotive Industry (VDA), the Chinese auto market showed a very dynamic performance in the first six months of 2013, gaining 20.6% to 7.7 million passenger cars. The Indian market, however, fell by 9.7% to 1.3 million cars in the first half-year 2013. The decline in Japan by 8.5% to 2.3 million vehicles must be regarded against the backdrop of the high prior-year level.

Demand for passenger cars ("light vehicles") grew in the U.S. by 7.5% to 7.8 million units in the first half-year 2013.

Significant events

Dr. Anton Mindl, CEO, and Nicolaus Graf von Luckner, CFO, explained the 2012 annual result within the framework of the annual press conference and the analysts' conference held on March 19, 2013. The Management Board also presented the general economic conditions and the outlook for 2013. The analysts' conference is available as a video file at www.elmos.com.

Furthermore, Elmos presented its product portfolio at the trade shows "embedded world 2013" in Nuremberg and "electronica China" in Shanghai and received positive customer response throughout.

In February Elmos spread the news that it had successfully implemented an energy management system which was certified in accordance with DIN EN ISO 50001. The goal is to save energy. Elements of the energy management system are a corporate energy policy, the definition of energy targets, the identification of energy savings potential, the determination of measures, and review cycles as well as monitoring.

Elmos presented several new products in the reporting period. The IC E931.08 is designed especially for the interface between thermopile sensor and microcontroller or processor. One of the potential applications is a compact-sized in-ear thermometer. The IC family 522.7x comprises highly efficient step-down converters designed consistently for low quiescent current draw and high efficiency. The achievable efficiency rate exceeds 90%. Potential fields of use for the E522.7x product range are industrial applications in voltage supply systems. With the application of an IC in a multifunction wall scanner, the HALIOS® technology managed to score another milestone for the product family. For the very first time, this IC is not merely used in an optical sensor system but in a capacitive application and thus helps the scanner to identify all relevant materials in walls, floors and ceilings (e.g. power lines, wooden beams). With the IC E527.16, which is also based on the HALIOS® principle, Elmos has introduced a semiconductor specially designed for the control of light and lighting fixtures. The new product recognizes simple gestures such as approach or wiping motions up to a distance of approx. 25 cm. Functions such as on/off, "search light" or dimming and many more can thus be realized very easily and touchless.

In April the partnership of Elmos and SMI with the distributor Mouser Electronics Inc. was announced. Mouser will distribute mixed-signal semiconductors, MEMS pressure sensors, HALIOS® sensors, and integrated microsystems.

Elmos held its 14th Annual General Meeting on May 24, 2013. All items on the agenda were adopted by a large majority. Among them was the resolution for the payment of an unchanged dividend in the amount of 0.25 Euro per share. The General Meeting is available as webcast (www.elmos.com/ english/investor-relations/annual-general-meeting).

On June 25, 2013 Elmos hosted a development workshop for customers dealing with the topic of industrial products. Its focus was on the efficient integration of IO-Link, DC/DC and KNX products into new or existing systems.

In June 2013 Elmos released the new product catalog 2013/14, providing a large number of application examples and detailed information. With application examples, Elmos gives proof of its system know-how. The complete design of a system, for instance an airbag safety system, a vehicle's headlights and an air-conditioning system, are vividly outlined with the help of Elmos components.

Staff development Elmos Group

Other disclosures Staff development

The Elmos Group's workforce came to 1,047 employees as of June 30, 2013. Compared with December 31, 2012 (1,032 employees), the staff is thus slightly increased (1.5%). This is accounted for essentially by the regular employment of formerly temporary staff.

Elmos share

Despite the persisting economic uncertainties in Europe, the stock markets generally showed positive developments in the first half-year 2013. DAX (4.6%), TecDAX (14.3%), DAX Sector Technology (6.4%) and Technology All Share (13.4%) all reported gains. The Elmos share had a very good performance and climbed by 20.4% over the first six months of 2013. Similar to most indices, the increase of the Elmos stock took place primarily in the first quarter of 2013, followed by a sideways movement in the following quarter.

The Elmos share closed on June 28, 2013 at 8.61 Euro. Market capitalization amounted to 169.0 million Euro at that date (based on 19.6 million shares outstanding). The stock price reached its high on March 20, 2013 at 9.00 Euro and its low on January 3, 2013 at 7.17 Euro (Xetra closing prices all). The average daily trading volume of the first six months of 2013 was 17.8 thousand shares (Xetra and Frankfurt floor) and was thus below the 2012 average (23.8 thousand shares).

At the end of March 2013, Elmos completed its share buyback plan launched in August 2012. Altogether 348,783 shares were repurchased at an average share price of 7.57 Euro. This equals a total purchase price of 2.6 million Euro. The portfolio of treasury shares was reduced by servicing stock options with treasury stock and through share-based remuneration. On June 30, 2013 Elmos Semiconductor AG held 327,697 treasury shares.

Altogether 65,940 stock options were exercised in the first halfyear 2013, originating from the stock option plan of the 2009 tranche. As a part of these options were serviced with treasury shares (54,690 shares) and another part by the creation of conditional capital (11,250 shares), the share capital amounts to 19,626,955 shares or Euro as of June 30, 2013.

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

Nicolaus Graf von Luckner Graduate economist | Oberursel

Reinhard Senf Graduate engineer | Iserlohn

Dr. Peter Geiselhart Graduate physicist | Ettlingen

Outlook Opportunities and risks

Risk management and individual corporate risks and opportunities are described in our Annual Report 2012. No material changes of the Company's risks and opportunities as detailed therein have occurred in the fi rst half-year 2013. No risks are visible at present that could either separately or collectively jeopardize the Company's continued existence.

Economic framework

The general economic conditions for 2013 continue to be dismal on account of the euro crisis. The resulting uncertainty makes many customers hesitate when it comes to buying a new car. While on the global scope, a slight growth by 2% to 70.5 million units is expected for the passenger car market, the European market remains the problem child. The German Association of the Automotive Industry (VDA) identifi es the ever increasing divide in the growth dynamics of relevant markets as a challenge. VDA President Matthias Wissmann calls the automotive year 2013 "a challenging year of hard work", yet he anticipates a modest stabilization to occur in the second half-year 2013.

The VDA expects the Western European market to shrink by about 5% to 11.1 million new cars in 2013 which would be the fourth year of decline in a row, recording almost 4 million units below the record year of 2007 (14.8 million units). In Western Europe, especially Italy, Spain and France show pronounced weakness in the market, particularly due to the sovereign debt crises. An approximate growth of 5% is expected for the U.S. in 2013; for China, even a double-digit growth rate of 10% is anticipated.

Outlook for the Elmos Group

Elmos has pursued a solid economic policy over the past years. As a consequence of that, Elmos now stands on a secure fi nancial foundation. Moreover, Elmos is highly regarded by the customers; the deciding factors for this reputation were the power of innovation, the high quality level, and the Company's delivery reliability.

This current year's ramp-up of several new products refl ects in our sales performance of the fi rst half-year 2013 as well as in our order backlog and order intake. We are therefore expecting higher sales for the second half-year 2013 at – compared to the fi rst half-year 2013 – signifi cantly improved earnings.

Elmos has the right products in order to benefi t from a sound economy. Therefore we maintain a positive outlook on the current year despite the rather dim current prospects for the automotive market and thus confi rm our growth forecast for 2013.

In 2013 Elmos anticipates a sales increase in the mid single-digit percentage range based on essentially unchanged general economic conditions. The EBIT margin will be above the 2012 level (6.3%). The adjusted free cash fl ow is expected to be positive. Capital expenditures are budgeted to amount to no more than 15% of sales.

In the medium and long term, Elmos will benefi t from the global megatrends: increasing urbanization, more renewable energy sources (and generally dealing with energy in an effi cient way), and more as well as environmentally sound mobility. To all these dynamically growing market segments, Elmos will make important contributions.

Interim consolidated fi nancial statements

Condensed consolidated statement of fi nancial position

Assets 6/30/2013
thousand Euro
12/31/20121
thousand Euro
Non-current assets
Intangible assets2 28,377 30,236
Property, plant and equipment2 70,884 71,755
Investments in associates 0 0
Securities2, 3 48,596 18,741
Investments2, 3 470 2,652
Other fi nancial assets2 1,632 1,116
Deferred tax assets 3,195 3,624
Total non-current assets 153,154 128,124
Current assets
Inventories2 44,771 42,968
Trade receivables3 30,720 27,644
Securities3 3,791 7,840
Other fi nancial assets 4,669 4,203
Other receivables 6,953 5,479
Income tax assets 870 411
Cash and cash equivalents3 21,543 55,576
113,318 144,121
Non-current assets held for sale 1,021 144
Total current assets 114,339 144,265
Total assets 267,493 272,389

Condensed consolidated statement of fi nancial position

Equity and liabilities 6/30/2013
thousand Euro
12/31/20121
thousand Euro
Equity
Equity attributable to owners of the parent
Share capital2 19,627 19,616
Treasury stock2 −328 −240
Additional paid-in capital 87,855 88,599
Surplus reserve 102 102
Other equity components −3,555 −3,402
Retained earnings 78,905 82,327
182,607 187,002
Non-controlling interests 1,931 2,587
Total equity 184,538 189,589
Liabilities
Non-current liabilities
Provisions 516 756
Financial liabilities3 22,531 12,571
Other liabilities 4,660 5,277
Deferred tax liabilities 2,633 4,219
Total non-current liabilities 30,340 22,823
Current liabilities
Provisions 8,533 8,107
Income tax liabilities 2,210 1,409
Financial liabilities3 20,149 30,290
Trade payables3 17,868 17,755
Other liabilities 3,855 2,416
Total current liabilities 52,616 59,977
Total liabilities 82,956 82,800
Total equity and liabilities 267,493 272,389

1Adjustment of prior-year amounts due to amendment to IAS 19;

please refer to note 1 in the condensed notes to consolidated fi nancial statements

2 Cf. note 3

3 Cf. note 4

Condensed consolidated income statement

For the period from April 1 to June 30 4/1 –
6/30/2013
thousand Euro
in percent
of sales
4/1 –
6/30/2012
thousand Euro1
in percent
of sales
Change
Sales 47,071 100.0% 45,500 100.0% 3.5%
Cost of sales 28,727 61.0% 27,463 60.4% 4.6%
Gross profi t 18,343 39.0% 18,037 39.6% 1.7%
Research and development expenses 9,031 19.2% 9,128 20.1% −1.1%
Distribution expenses 4,638 9.9% 4,488 9.9% 3.4%
Administrative expenses 4,130 8.8% 4,014 8.8% 2.9%
Operating income before other
operating expenses/income 544 1.2% 407 0.9% 33.8%
Finance income −582 −1.2% −449 −1.0% 29.6%
Finance costs 567 1.2% 601 1.3% −5.7%
Exchange rate gains (−)/losses 58 0.1% −95 −0.2% n/a
Other operating income −1,425 −3.0% −3,304 −7.3% −56.9%
Other operating expenses 335 0.7% 444 1.0% −24.5%
Earnings before taxes 1,590 3.4% 3,210 7.1% −50.5%
Taxes on income
Current income tax expense 514 1.1% 758 1.7% −32.2%
Deferred taxes −153 −0.3% −529 −1.2% 71.1%
361 0.8% 229 0.5% 57.5%
Consolidated net income 1,229 2.6% 2,981 6.6% −58.8%
Consolidated net income attributable to
Owners of the parent 1,056 2.2% 2,922 6.4% −63.9%
Non-controlling interests 173 0.4% 59 0.1% >100.0%
Earnings per share
Basic earnings per share (in Euro) 0.05 0.15 −63.7%
Fully diluted earnings per share (in Euro) 0.05 0.15 −63.7%

Condensed consolidated statement of comprehensive income

For the period from April 1 to June 30 4/1 –
6/30/2013
thousand Euro
4/1 –
6/30/2012
thousand Euro1
Consolidated net income 1,229 2,981
Other comprehensive income
Items that may be reclassifi ed to the income statement in future periods,
including respective tax effects
Foreign currency adjustments not affecting deferred taxes −61 59
Foreign currency adjustments affecting deferred taxes −289 859
Deferred tax (on foreign currency adjustments affecting deferred taxes) 73 −215
Value differences relating to hedges 178 −303
Deferred tax (on value differences relating to hedges) −58 98
Available-for-sale fi nancial assets −677 −31
Deferred tax (on available-for-sale fi nancial assets) 280 2
Items that will not be reclassifi ed to the income statement in future periods,
including respective tax effects
Actuarial gains/losses (−) from pension plans 42 −29
Deferred tax on actuarial gains/losses (−) from pension plans −13 10
Other comprehensive income after taxes −525 450
Total comprehensive income after taxes 704 3,431
Total comprehensive income attributable to
Owners of the parent 543 3,369
Non-controlling interests 161 62

1Adjustment due to the amendment to IAS 19

1Adjustment of prior-year amounts due to amendment to IAS 19; please refer to note 1 in the condensed notes to consolidated fi nancial statements

Condensed consolidated income statement

For the period from January 1 to June 30 1/1 –
6/30/2013
thousand Euro
in percent
of sales
1/1 –
6/30/2012
thousand Euro1
in percent
of sales
Change
Sales 90,213 100.0% 92,414 100.0% −2.4%
Cost of sales 55,030 61.0% 56,142 60.8% −2.0%
Gross profi t 35,182 39.0% 36,272 39.2% −3.0%
Research and development expenses 17,814 19.7% 17,883 19.4% −0.4%
Distribution expenses 9,249 10.3% 8,952 9.7% 3.3%
Administrative expenses 8,213 9.1% 8,329 9.0% −1.4%
Operating income before other
operating expenses/income
−94 −0.1% 1,108 1.2% n/a
Finance income −1,044 −1.2% −907 −1.0% 15.0%
Finance costs 1,132 1.3% 1,196 1.3% −5.3%
Exchange rate gains (−)/losses −66 −0.1% 7 0.0% n/a
Other operating income −2,455 −2.7% −4,002 −4.3% −38.7%
Other operating expenses 592 0.7% 740 0.8% −20.0%
Earnings before taxes 1,748 1.9% 4,075 4.4% −57.1%
Taxes on income
Current income tax expense 1,018 1.1% 782 0.8% 30.2%
Deferred taxes −1,007 −1.1% −333 −0.4% >100.0%
11 0.0% 449 0.5% −97.6
Consolidated net income 1,737 1.9% 3,626 3.9% −52.1%
Consolidated net income attributable to
Owners of the parent 1,478 1.6% 3,560 3.8% −58.5%
Non-controlling interests 259 0.3% 66 0.1% >100.0%
Earnings per share
Basic earnings per share (in Euro) 0.08 0.18 −58.4%
Fully diluted earnings per share (in Euro) 0.08 0.18 −58.2%

Condensed consolidated statement of comprehensive income

For the period from January 1 to June 30 1/1 –
6/30/2013
thousand Euro
1/1 –
6/30/2012
thousand Euro1
Consolidated net income 1,737 3,626
Other comprehensive income
Items that may be reclassifi ed to the income statement in future periods,
including respective tax effects
Foreign currency adjustments not affecting deferred taxes −65 44
Foreign currency adjustments affecting deferred taxes 104 404
Deferred tax (on foreign currency adjustments affecting deferred taxes) −26 −101
Value differences relating to hedges 252 −510
Deferred tax (on value differences relating to hedges) −71 164
Available-for-sale fi nancial assets −639 34
Deferred tax (on available-for-sale fi nancial assets) 233 −7
Items that will not be reclassifi ed to the income statement in future periods, including
respective tax effects
Actuarial gains/losses (−) from pension plans 42 −58
Deferred tax on actuarial gains/losses (−) from pension plans −13 19
Other comprehensive income after taxes −183 −11
Total comprehensive income after taxes 1,554 3,615
Total comprehensive income attributable to
Owners of the parent 1,325 3,546
Non-controlling interests 229 69

1Adjustment due to the amendment to IAS 19

1Adjustment of prior-year amounts due to amendment to IAS 19; please refer to note 1 in the condensed notes to consolidated fi nancial statements

Condensed consolidated statement of cash fl ows

For the period from January 1 to June 30 1/1 –
6/30/2013
thousand
Euro
1/1 –
6/30/2012
thousand
Euro1
4/1 –
6/30/2013
thousand
Euro
4/1 –
6/30/2012
thousand
Euro1
Cash fl ow from operating activities
Consolidated net income 1,737 3,626 1,229 2,981
Depreciation and amortization 9,309 8,595 4,657 4,348
Financial result 88 289 −15 153
Other non-cash income (–)/expenses −1,109 −2,315 −185 −2,542
Current income tax expense 1,018 782 513 758
Expenses for stock option and stock award plans 210 161 101 65
Changes in pension provisions −199 −107 −154 −69
Changes in net working capital:
Trade receivables −3,076 −522 −826 697
Inventories −1,803 1,012 −369 1,092
Other assets −1,941 −1,623 −1,721 −64
Trade payables 113 −2,706 −2,364 665
Other provisions and other liabilities 1,601 −34 −625 −2,024
Income tax payments −676 −1,853 −222 −1,392
Interest paid −1,132 −1,196 −567 −602
Interest received 1,034 907 572 449
Cash fl ow from operating activities 5,174 5,016 24 4,515

1Adjustment due to the amendment to IAS 19

Condensed consolidated statement of cash fl ows (continuation)

1/1 – 1/1 – 4/1 – 4/1 –
6/30/2013
thousand
6/30/2012
thousand
6/30/2013
thousand
6/30/2012
thousand
For the period from January 1 to June 30 Euro Euro1 Euro Euro1
Cash fl ow from investing activities
Capital expenditures for intangible assets −794 −1,279 −418 −498
Capital expenditures for property, plant and equipment −6,286 −7,037 −4,476 −4,516
Payments for (−)/Disposal of non-current assets held for sale −878 57 −753 −80
Payments from acquisition of shares in subsidiaries 0 302 0 302
Disposal of property, plant and equipment 530 63 56 61
Payments for (−)/Disposal of securities −26,446 −3,318 −9,878 −3,099
Disposal of investments 1,709 0 1,709 0
Payments for other non-current fi nancial assets −17 −4 −9 −54
Cash fl ow from investing activities −32,181 −11,216 −13,768 −7,884
Cash fl ow from fi nancing activities
Repayment (−) /Borrowing of non-current liabilities −40 190 −40 254
Repayment of current liabilities to banks −141 −147 −37 −9
Newly created non-controlling interests 0 48 0 0
Issue of treasury shares/Share-based remuneration 457 207 274 207
Purchase of treasury shares −1,525 0 0 0
Capital increase from conditional capital 41 271 41 271
Dividend payment −4,814 −4,827 −4,814 −4,827
Dividend payment to non-controlling shareholders −400 0 −316 0
Increase of majority stake −570 0 0 0
Other changes −4 −32 0 −26
Cash fl ow from fi nancing activities −6,996 −4,290 −4,892 −4,130
Decrease in cash and cash equivalents −34,003 −10,490 −18,636 −7,499
Effect of exchange rate changes on cash and cash equivalents −30 166 −154 361
Cash and cash equivalents at beginning of reporting period 55,576 59,002 40,333 55,816
Cash and cash equivalents at end of reporting period 21,543 48,678 21,543 48,678

Condensed consolidated statement of changes in equity

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
fi nancial 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, 2012 prior to adjustments 19,414 19,414 −106 88,516 102 −37 −627 −1,400 0 81,450 187,312 633 187,945
Effects of fi rst-time application of IAS 19R1 43 −6 37 37
January 1, 2012 after adjustments 19,414 19,414 −106 88,516 102 −37 −627 −1,400 43 81,444 187,349 633 187,982
Consolidated net income 3,560 3,560 66 3,626
Other comprehensive income for the period 27 −346 344 −39 −14 3 −11
Total comprehensive income 27 −346 344 −39 3,560 3,546 69 3,615
Share-based remuneration 26 181 207 207
Capital increase from conditional capital 74 74 197 271 271
Changes in basis of consolidation 1,659 1,659
Put option non-controlling shareholder −2,214 −2,214 −2,214
Dividend payment −4,827 −4,827 −4,827
Stock option and stock award expenses 161 161 161
Newly created non-controlling interests 17 17 31 48
Other changes −181 −181 −181
June 30, 2012 19,488 19,488 −80 89,055 102 −10 −973 −1,056 4 77,799 184,329 2,392 186,721
January 1, 2013 prior to 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 fi rst-time application of IAS 19R1 −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 46 209 255 255
Capital increase from conditional capital 11 11 30 41 41
Issue of treasury shares 55 147 202 202
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

1 Please refer to note 1 in the condensed notes to consolidated fi nancial statements

Condensed notes to the consolidated financial statements

The condensed interim consolidated fi nancial statements for the 1st half-year 2013 were released for publication in August 2013 pursuant to Management Board resolution.

1 // General information

Elmos Semiconductor Aktiengesellschaft ("the Company" or "Elmos") has its registered offi ce 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 amended by resolution of the Annual General Meeting of May 24, 2013.

The Company's business is the development, manufacture and distribution of microelectronic components and system parts (application specifi c 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 benefi cial 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 in Asia and the United States and cooperates with other German and international companies in the development and production of ASIC chips.

Basic principles of the preparation of fi nancial statements

The condensed interim consolidated fi nancial statements for the period from January 1 to June 30, 2013 have been prepared in accordance with IAS 34: Interim Financial Reporting. These fi nancial statements do therefore not contain all the information and disclosures required for consolidated fi nancial statements and should therefore be read in conjunction with the consolidated fi nancial statements for the fi scal year ended December 31, 2012.

Essential accounting policies and valuation methods

For the preparation of the condensed interim consolidated fi nancial statements, the same accounting policies and valuation methods have been adopted as were applied for the preparation of the consolidated fi nancial statements for the fi scal year ended December 31, 2012, with the exception of the following new or amended IFRS standards and interpretations listed below.

-> IAS 19: Employee Benefi ts (revised 2011)

In June 2011 the IASB released amendments to IAS 19: Employee Benefi ts, adopted by the EU in June 2012. The amendments to IAS 19 must generally be applied with retrospective effect for fi nancial statements prepared for fi scal years beginning on or after January 1, 2013. So far the Group has applied the so-called corridor method. Upon the elimination of the corridor method by the revised IAS 19, actuarial gains and losses have immediate effect on the consolidated statement of fi nancial position and result in an increase of pension provisions as well as a decrease in equity. From now on the consolidated income statement remains free of effects from actuarial gains and losses as those are now to be recorded in other comprehensive income. Elmos has adjusted the reported prior-year amounts for effects from the amendment to IAS 19. For Elmos, the amendment to IAS 19 results in the following effects:

Retrospective presentation of the consolidated statement of fi nancial position as of January 1, 2012

thousand Euro January 1,
2012 prior to
adjustments
Effects from fi rst
time application of
IAS 19R
January 1,
2012 after
adjustments
Consolidated statement of fi nancial position
Other equity components −2,064 43 −2,021
Retained earnings 81,450 −6 81,444
Non-current provisions 243 −55 188
Deferred tax liabilities 3,994 18 4,012

Retrospective presentation of the consolidated statement of fi nancial position as of January 1, 2013

thousand Euro January 1,
2013 prior to
adjustments
Effects from fi rst
time application of
IAS 19R
January 1,
2013 after
adjustments
Consolidated statement of fi nancial position
Deferred tax assets 3,421 203 3,624
Other equity components −2,869 −533 −3,402
Retained earnings 82,255 72 82,327
Non-current provisions 92 664 756

Retrospective presentation of the consolidated income statement for the second quarter 2012

4/1 – 6/30/2012
prior to adjustments
Effects from fi rst
time application of
IAS 19R
4/1 – 6/30/2012
after adjustments
4,043 −29 4,014
378 29 407
3,181 29 3,210
−538 9 −529
2,961 20 2,981

Retrospective presentation of the consolidated income statement for the fi rst half-year 2012

thousand Euro 1/1 – 6/30/2012
prior to adjustments
Effects from fi rst
time application of
IAS 19R
1/1 – 6/30/2012
after adjustments
Consolidated income statement
Administrative expenses 8,386 −57 8,329
Operating income before other operating expenses/income 1,051 57 1,108
Earnings before taxes 4,018 57 4,075
Deferred taxes −351 18 −333
Consolidated net income 3,587 39 3,626

The above adjustments to the consolidated income statement did not have material effects on the basic earnings and diluted earnings per share.

-> IFRS 13: Fair Value Measurement

In May 2011 the IASB released IFRS 13: Fair Value Measurement, merging regulations on the measurement of fair value, previously scattered over several IFRS, in a single standard and replacing them by a uniform regulation. IFRS 13 is subject to prospective application for fi scal years beginning on or after January 1, 2013. First-time application does not result in material effects on the measurement of assets and liabilities. Changes do particularly address the notes to consolidated fi nancial statements. Accordingly, information about market values of fi nancial instruments and the categorization of fi nancial instruments, so far reportable only as of the reporting date of annual fi nancial statements, must now also be provided during the fi scal year in the interim consolidated fi nancial statements.

-> Improvements to IFRS (2009-2011): collection of standards

The regulation includes clarifi cations of several existing standards and is subject to application for fi scal years beginning on or after January 1, 2013. It did not have any material effects on the Group's fi nancial, profi t and economic situation.

Estimates and assumptions

The Company recognizes provisions for pension and partial retirement obligations pursuant to IAS 19. An actuarial interest rate of 3.5% has been applied for pension obligations in 2013 (12/31/2012: 3.5%) and of 1.4% for partial retirement obligations (12/31/2012: 3.5%).

Exceptional business transactions

There were no exceptional business transactions in the fi rst half-year 2013.

Basis of consolidation

There were neither additions to nor disposals from the basis of consolidation in the fi rst half-year 2013.

As of acquisition date January 1, 2013, 26.1% of the shares in GED Gärtner-Electronic-Design GmbH, Frankfurt/Oder were acquired. After this increase of the already existing majority stake, Elmos Semiconductor AG holds 100% of the shares in this affi liate.

Seasonal and economic impact on business operations

The general economic conditions for 2013 continue to be affected negatively by the euro crisis. The resulting uncertainty makes many customers hesitate when it comes to buying a new car. The German Association of the Automotive Industry (VDA) identifi es the ever increasing divide in the growth dynamics of relevant markets as a challenge. The business of Elmos Semiconductor AG is not subject to material seasonal fl uctuations.

2 // Segment reporting

The business segments correspond to the Elmos Group's internal organizational and reporting structure. The defi nition 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, 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 microelectro-mechanical systems (MEMS) which are primarily silicon-based high-precision pressure sensors. The following tables provide information on sales and earnings (for the period from January 1 to June 30, 2013 and 2012, respectively) as well as on assets of the Group's business segments (as of June 30, 2013 and December 31, 2012).

1st half-year ended June 30, 2013 Semiconductor
thousand Euro
Micromechanics
thousand Euro
Consolidation
thousand Euro
Total
thousand Euro
Sales
Third-party sales 82,371 7,842 0 90,213
Inter-segment sales 220 409 −6291 0
Total sales 82,591 8,251 −629 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
Segment assets 226,226 15,189 25,6082 267,023
Investments 470 0 0 470
Total assets 267,493
Other segment information
Capital expenditures for intangible assets
and property, plant and equipment
6,990 90 0 7,080
Depreciation and amortization 8,973 336 0 9,309
1st half-year ended June 30, 2012 Semiconductor
thousand Euro3
Micromechanics
thousand Euro
Consolidation
thousand Euro3
Group
thousand Euro3
Sales
Third-party sales 82,546 9,868 0 92,414
Inter-segment sales 133 401 −5341 0
Total sales 82,679 10,269 −534 92,414
Earnings
Segment earnings 3,316 1,048 0 4,364
Finance income 907
Finance costs −1,196
Earnings before taxes 4,075
Taxes on income −449
Consolidated net income including non-controlling interests 3,626
Assets (as of 12/31/2012)
Segment assets 196,462 13,664 59,6112 269,737
Investments 470 2,182 0 2,652
Total assets 272,389
Other segment information
Capital expenditures for intangible assets
and property, plant and equipment
11,412 865 0 12,277
Depreciation and amortization 8,278 317 0 8,595

1 Sales from intersegment transactions are eliminated for consolidation purposes.

Non-attributable assets as of June 30, 2013 include cash and cash equivalents (25,543 thousand Euro), income tax assets (870 thousand Euro), and deferred taxes (3,195 thousand Euro), as these assets are controlled at group level.

1 Sales from intersegment transactions are eliminated for consolidation purposes.

Non-attributable assets as of December 31, 2012 include cash and cash equivalents (55,576 thousand Euro), income tax assets (411 thousand Euro), and deferred taxes (3,624 thousand Euro), as these assets are controlled at group level.

3 Adjustment of prior-year amounts due to amendment to IAS 19; please also refer to note 1 in the notes to consolidated fi nancial statements

Geographical information

Sales generated with third-party customers Half-year ended
6/30/2013
thousand Euro
Half-year ended
6/30/2012
thousand Euro
Germany 30,689 27,846
Other EU countries 25,889 31,357
U.S.A. 6,172 7,630
Asia/Pacifi c 21,135 18,848
Others 6,328 6,733
Consolidated sales 90,213 92,414
Geographical distribution of non-current assets 6/30/2013
thousand Euro
12/31/2012
thousand Euro
Germany 139,605 112,054
Other EU countries 4,546 4,796
U.S.A. 4,059 6,458
Others 117 76
Non-current assets 148,327 123,384

3 // Notes on essential items

Selected non-current assets

Development of selected
non-current assets
from January 1
to June 30, 2013
Net book value
1/1/2013
thousand Euro
Reclassifi cation
thousand Euro
Additions
thousand Euro
Disposals/Other
movements
thousand Euro
Depreciation
and
amortization
thousand Euro
Net book
value
6/30/2013
thousand Euro
Intangible assets 30,236 0 794 −51 2,602 28,377
Property, plant and
equipment
71,755 0 6,286 −450 6,707 70,884
Securities 18,741 0 31,781 −1,926 0 48,596
Investments 2,652 0 0 −2,182 0 470
Other fi nancial assets 1,116 0 516 0 0 1,632
124,500 0 39,377 −4,609 9,309 149,959

The item "Disposals/Other movements" includes positive currency adjustments in the amount of 30 thousand Euro.

Inventories

6/30/2013
thousand Euro
12/31/2012
thousand Euro
Raw materials 7,234 7,432
Work in process 31,223 27,464
Finished goods 6,314 8,072
44,771 42,968

Equity

As of June 30, 2013, the share capital of Elmos Semiconductor AG consists of 19,626,955 shares. At present, the Company holds 327,697 treasury shares.

As of June 30, 2013, altogether 1,065,451 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 12/31/2012 (number) 255,580 238,088 246,410 400,000 1,140,078
Exercised 1/1-6/30/2013 (number) 65,940 0 0 0 65,940
Forfeited 1/1-6/30/2013 (number) 700 1,660 1,875 4,452 8,687
Options outstanding as of 6/30/2013 (number) 188,940 236,428 244,535 395,548 1,065,451
Options exercisable as of 6/30/2013 (number) 188,940 0 0 0 188,940

4 // Information on fi nancial instruments

The following table lists the book values and fair values of the Group's fi nancial instruments. The fair value of a fi nancial 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 infl uence, 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 fi nancial instruments can be found under note 29 to the 2012 consolidated fi nancial statements. Their relevance to these half-year fi nancial statements is undiminished.

Book values and fair values of fi nancial instruments

June 30, 2013 December 31, 2012
thousand Euro Book value Fair value Book value Fair value
Financial assets
Investments 470 470 2,652 2,652
Long-term securities 48,596 48,596 18,741 18,741
Short-term securities 3,791 3,791 7,840 7,840
Trade receivables 30,720 30,720 27,644 27,644
Cash and cash equivalents 21,543 21,543 55,576 55,576
Other fi nancial assets
Other receivables and assets 3,406 3,406 2,398 2,398
Other loans 2,207 2,207 2,305 2,305
Call option 54 54 54 54
Earn-out 579 579 562 562
Forward exchange contracts 55 55 0 0
Financial liabilities
Trade payables 17,868 17,868 17,755 17,755
Liabilities to banks 42,680 44,567 42,861 44,027
Other fi nancial liabilities
Miscellaneous fi nancial liabilities 177 177 342 342
Put option 2,242 2,242 2,242 2,242
Hedged derivatives (short-term) 471 471 207 207
Hedged derivatives (long-term) 1,203 1,203 1,719 1,719
Fixed-interest forward loans 0 0 0 6751
FX derivatives −13 −13 0 0

1 Prior-year amount adjusted; the disclosure of fi xed-interest forward loans has been included in liabilities to banks as of the beginning of the respective terms.

At the end of the reporting period a review is conducted to fi nd out whether reclassifi cations between valuation hierarchies must be made. The following presentation shows which valuation hierarchies (according to IFRS 13) fi nancial assets and liabilities measured at fair value are classifi ed to.

Hierarchy of fair values

The Group applies the following hierarchy for the determination and statement of the fair values of fi nancial instruments according to the respective valuation methods:

Stage 1: quoted (unadjusted) prices in active markets for similar assets or liabilities

Stage 2: methods where all input parameters with material effect on the determined fair value can be monitored either directly or indirectly

Stage 3: methods using input parameters that have material effect on the determined fair value and are not based on market data that can be monitored

As of June 30, 2013, the Group held the following fi nancial instruments measured at fair value:

Available-for-sale financial assets Stage 1
thousand Euro
Stage 2
thousand Euro
Stage 3
thousand Euro
January 1, 2013 23,081 2,652
Disposal investments TetraSun Inc. −2,182
Addition securities (long-term) 27,781
Disposal securities (long-term) −1,926
Disposal securities (short-term) −4,049
June 30, 2013 44,887 470
Hedged derivatives
January 1, 2013 −1,926
Correction of measurement of hedged derivatives outside profi t or loss
(short-term and long-term)
252
June 30, 2013 −1,674
Call option
January 1, 2013 54
June 30, 2013 54
Put option
January 1, 2013 −2,242
June 30, 2013 −2,242
Forward exchange contracts
January 1, 2013 0
Addition forward exchange contracts 55
June 30, 2013 55
FX derivatives
January 1, 2013 0
Addition FX derivatives −13
June 30, 2013 −13

The securities reported under hierarchy stage 1 are bonds classifi ed by Elmos as available for sale.

The hedged derivatives allocated to hierarchy stage 2 comprise the Company's interest rate swaps. In addition to that, foreign currency transactions (USD) are reported under this hierarchy stage.

The available-for-sale fi nancial assets reported under hierarchy stage 3 are investments in various companies, among other assets. With this respect, the book value essentially corresponds with the market value. The shares in TetraSun Inc., acquired in previous years, were sold in the fi rst halfyear 2013. The call and put options agreed on with a non-controlling shareholder are measured annually at fair value, most recently as of December 31, 2012, 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 monitored 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.

5 // Related party disclosures

As reported in the consolidated fi nancial statements for the fi scal year ended December 31, 2012, 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.

Directors' dealings according to Section 15a WpHG (Securities Trading Act)

The following reportable securities transactions (directors' dealings) were made in the reporting period from January 1 to June 30, 2013:

Date
Place
Name Function Transaction Number Price/Basic
price (Euro)
Total volume
(Euro)
3/19/2013
XETRA
Dr. Klaus Weyer Supervisory Board
member
Purchase of
Elmos shares
19,000 8.63 163,938
3/21/2013
XETRA
Dr. Klaus Weyer Supervisory Board
member
Purchase of
Elmos shares
18,400 8.71 160,272
3/22/2013
Off-market
Reinhard Senf Management Board
member
Sale of Elmos shares
from exercise of stock
options
6,000 8.76 52,584
3/22/2013
Off-market
Ute-Karin Senf Spouse of a
Management Board
member
Sale of Elmos shares
from exercise of stock
options
400 8.76 3,506
3/22/2013
XETRA
Dr. Klaus Weyer Supervisory Board
member
Purchase of
Elmos shares
4,500 8.74 39,318

6 // Significant events after the end of the first half-year

There have been no reportable signifi cant events or transactions after the end of the fi rst half-year 2013.

Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim fi nancial reporting, the interim consolidated fi nancial statements give a true and fair view of the assets, liabilities, fi nancial position and profi t 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 fi nancial year.

Dortmund, August 7, 2013

Dr. Anton Mindl Nicolaus Graf von Luckner Reinhard Senf Dr. Peter Geiselhart

Review report

To Elmos Semiconductor AG, Dortmund

We have reviewed the condensed interim consolidated fi nancial statements – comprising condensed statement of fi nancial position, condensed statement of comprehensive income, condensed statement of cash fl ows, 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, 2013 that are required components of a half-year fi nancial report pursuant to Section 37w WpHG (Securities Trading Act).

The preparation of the condensed interim consolidated fi nancial statements in accordance with the IFRS applicable to interim fi nancial 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 fi nancial statements and the interim group management report based on our review.

We have performed our review of the condensed interim consolidated fi nancial statements and the interim group management report in accordance with the German generally accepted standards for the review of fi nancial statements as defi ned 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 fi nancial statements have not been prepared in material respects in accordance with the IFRS applicable to interim fi nancial 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 fi nancial statement audit. As we have not performed a fi nancial 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 fi nancial statements have not been prepared in all material respects in accordance with the IFRS applicable to interim fi nancial 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 7, 2013

Warth & Klein Grant Thornton AG Wirtschaftsprüfungsgesellschaft

Dr. Thomas Senger Ulrich Diersch Wirtschaftsprüfer Wirtschaftsprüfer

Financial calendar 2013 Contact | Imprint

6-months results Q2/20131 August 7, 2013
9-months results Q3/20131 November 6, 2013
Equity Forum in Frankfurt November 11-13, 2013

1 Results are usually released after trading hours. Conference calls are usually conducted the day after the quarterly results are released. Janina Rosenbaum | Investor Relations Phone + 49 (0) 231 - 75 49 - 287 Fax + 49 (0) 231 - 75 49 - 548 [email protected]

This interim report was released on August 7, 2013 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 Elmos management. 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, fl uctuations 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

Talk to a Data Expert

Have a question? We'll get back to you promptly.