Quarterly Report • Nov 3, 2011
Quarterly Report
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INTERIM REPORT Q3 2011
| 3rd quarter | 9 months | |||||
|---|---|---|---|---|---|---|
| in million Euro or percent unless otherwise indicated |
7/1 – 9/30/2011 |
7/1 – 9/30/2010 |
Change | 1/1 – 9/30/2011 |
1/1 – 9/30/2010 |
Change |
| Sales | 48.0 | 46.3 | 3.6% | 145.3 | 136.1 | 6.8% |
| Semiconductor | 43.7 | 42.6 | 2.4% | 132.6 | 124.9 | 6.2% |
| Micromechanics | 4.3 | 3.7 | 17.5% | 12.7 | 11.1 | 13.8% |
| Gross profi t | 23.1 | 22.4 | 3.2% | 66.2 | 60.6 | 9.3% |
| in percent of sales | 48.1% | 48.3% | 45.6% | 44.5% | ||
| R&D expenses | 8.3 | 7.3 | 14.7% | 24.9 | 22.1 | 12.8% |
| in percent of sales | 17.4% | 15.7% | 17.1% | 16.2% | ||
| Operating income | 6.3 | 7.6 | – 17.8% | 17.1 | 15.7 | 8.9% |
| in percent of sales | 13.0% | 16.4% | 11.8% | 11.6% | ||
| EBIT | 6.9 | 7.4 | – 6.3% | 19.1 | 15.6 | 22.3% |
| in percent of sales | 14.5% | 16.0% | 13.1% | 11.5% | ||
| Net income for the period after non controlling interests |
5.3 | 5.2 | 1.6% | 13.8 | 10.5 | 31.6% |
| in percent of sales | 11.0% | 11.2% | 9.5% | 7.7% | ||
| Basic earnings per share (in Euro) | 0.27 | 0.27 | 1.5% | 0.71 | 0.54 | 32.0% |
| Operating cash fl ow | 6.2 | 4.7 | 32.6% | 21.1 | 22.4 | – 5.8% |
| Capital expenditures | 2.0 | 3.3 | – 37.6% | 13.3 | 11.0 | 21.3% |
| in percent of sales | 4.3% | 7.1% | 9.2% | 8.1% | ||
| Free cash fl ow1 | 1.0 | –1.3 | na | 2.3 | 5.7 | – 59.5% |
| Adjusted free cash fl ow2 | 3.6 | 1.4 | >100.0% | 9.7 | 11.03 | – 11.8% |
| in million Euro or percent | |||
|---|---|---|---|
| unless otherwise indicated | 9/30/2011 | 12/31/2010 | Change |
| Equity | 182.4 | 172.3 | 5.9% |
| in percent of total assets | 69.4% | 69.1% | |
| Employees (reporting date) | 998 | 991 | 0.7% |
Cash fl ow from operating activities less cash fl ow from investing activities
Cash fl ow from operating activities, plus payments for marketable securities, less capital expenditure for intangible assets, less capital expenditure
for property, plant and equipment, less payments for investments, plus disposal of investments Prior-year amount has been adjusted
Due to calculation processes, tables and references may produce rounding differences from the mathematically exact values (monetary units, percentage statements, etc.).
Sales of the fi rst nine months of 2011 showed a positive performance compared to the prior-year period, reaching a record level once again. Sales went up 6.8% to 145.3 million Euro. Sales for the 2010 period of comparison came to 136.1 million Euro. Adjusted by sales of the special packaging business sold as of December 31, 2010, sales grew even by 10.4% in the nine months since the beginning of the year in comparison with the prior-year period.
Sales also increased slightly in comparison with the prioryear quarter. Sales of the third quarter 2011 rose to 48.0 million Euro, equivalent to a growth of 3.6%. Adjusted by the sold special packaging business, sales of the third quarter 2011 climbed by 7.2% in comparison to the prior-year quarter. Compared to the previous quarter, sales stabilized at a high level (Q2 2011: 49.2 million Euro).
The semiconductor segment and the micromechanics segment both had their share in achieving record sales. Semiconductor sales, generated for the most part with automotive customers, has gained 6.2% on the prior-year period since the beginning of the year, reaching 132.6 million Euro (9M 2010: 124.9 million Euro). The micromechanics segment achieved sales in the amount of 12.7 million Euro, a 13.8% increase (9M 2010: 11.1 million Euro). The major customers of the micromechanics segment manufacture products for the auto industry, medical technology, industrial applications, air-conditioning systems, and consumer goods.
With respect to the regional breakdown of sales, the continued positive development in the region Asia/Pacifi c is worth being pointed out. Sales in this region went up 40.4% compared to the fi rst nine months of 2010. The region's share in group sales has thus risen to 16.5% since the beginning of the year 2011 (9M 2010: 12.6%). Furthermore, increasing U.S. sales represent another positive development, gaining 15.0% on prior-year sales for the period.
The development of the order intake was solid over the fi rst nine months of 2011. The slowdown in the dynamics of customers' order behavior compared to the beginning of the year, noticeable since mid-year, still continues. The relation of orders received to sales, the so-called book-to-bill, was slightly below one by the end of the third quarter of 2011.
| Region | 1/1 – 9/30/2011 thousand Euro |
in percent of sales |
1/1 – 9/30/2010 thousand Euro |
in percent of sales |
Change |
|---|---|---|---|---|---|
| Germany | 52,199 | 35.9% | 50,964 | 37.5% | 2.4% |
| Other EU countries | 48,007 | 33.1% | 48,306 | 35.5% | – 0.6% |
| U.S.A. | 11,217 | 7.7% | 9,7551 | 7.1% | 15.0% |
| Asia/Pacifi c | 24,030 | 16.5% | 17,113 | 12.6% | 40.4% |
| Others | 9,866 | 6.8% | 9,9371 | 7.3% | – 0.7% |
| Group sales | 145,319 | 100.0% | 136,075 | 100.0% | 6.8% |
1 Prior-year amount has been adjusted
The gross profi t of the fi rst nine months of 2011 grew disproportionately to sales from 60.6 million Euro by 9.3% to 66.2 million Euro. The gross margin climbed to 45.6% (9M 2010: 44.5%), essentially due to increased utilization of production capacity. A signifi cant improvement of the gross margin is also apparent in consideration of the course of the year 2011. This trend is due primarily to the increase in manufacturing effi ciency based on the continuing conversion from the 6-inch to the 8-inch production line.
Research and development expenses grew by 12.8% to 24.9 million Euro in the fi rst nine months of 2011 (9M 2010: 22.1 million Euro). This increase is mainly accounted for by new employees in the design department. This scheduled enhancement of expertise addresses new applications and new regional markets. The ratio of R&D expenses rose from 16.2% to 17.1% of sales. The 21.7% increase in distribution expenses, from 9.3 million Euro to 11.3 million Euro over the fi rst nine months of 2011, is also due primarily to new hires, particularly in support of the expansion of the company's presence in Asia. General administrative expenses were down 4.4% in the fi rst nine months of 2011, coming to 12.9 million Euro (9M 2010: 13.5 million Euro).
The increase of the gross margin compensated for the increase in operating expenses so that the margin of the operating income remained stable at 11.8% (9M 2010: 11.6%). In absolute terms, however, the operating income went up from 15.7 million Euro to 17.1 million Euro.
The EBIT (earnings before interest and taxes) climbed to 19.1 million Euro due to higher other operating income as well as lower other operating expenses compared to the prior-year period (9M 2010: 15.6 million Euro), achieving a considerable improvement of the EBIT margin from 11.5% to 13.1%.
The net income attributable to owners of the parent rose from 10.5 million Euro for the fi rst nine months of 2010 to 13.8 million Euro for the reporting period. The net profi t margin thus increased from 7.7% to 9.5%. Basic earnings per share were 0.71 Euro (9M 2010: 0.54 Euro).
The operating cash fl ow of 21.1 million Euro for the fi rst nine months of 2011 turned out close to the prior-year level (9M 2010: 22.4 million Euro). In comparison to the prior-year period, a higher net income and a lower increase in trade receivables had a positive infl uence on the cash fl ow from operating activities; however, it was negatively affected by the decrease in trade payables (in contrast to an increase in the year before) and the outfl ow of funds for the acquisition of marketable securities. Capital expenditures (for intangible assets and for property, plant and equipment) amounted to 13.3 million Euro in the fi rst nine months of 2011, or 9.2% of sales (9M 2010: 11.0 million Euro or 8.1% of sales). The adjusted free cash fl ow (cash fl ow from operating activities, plus payments for marketable securities, less capital expenditure for intangible assets, less capital expenditure for property, plant and equipment, less payments for investments, plus disposal of investments) comes to 9.7 million Euro (9M 2010: 11.0 million Euro).
Resulting primarily from the acquisition of securities (6.2 million Euro), the dividend payout (3.9 million Euro), and the investment in TetraSun, cash and cash equivalents (without consideration of securities acquired) went down from 58.0 million Euro as of December 31, 2010 to 56.9 million Euro as of September 30, 2011. Contrary to that, net cash continued to increase to 31.5 million Euro, compared to December 31, 2010 (26.8 million Euro). At 69.4%, the equity ratio was virtually unchanged from the end of the year 2010 (December 31, 2010: 69.1%).
The global automotive markets appeared stable to friendly in the fi rst nine months of 2011, with the exception of Japan.
In Western Europe, the market for passenger cars almost remained steady with some 9.9 million new registrations since the beginning of the year (−1.1%), according to the German Association of the Automotive Industry (VDA). The situation in the major markets was heterogeneous over the fi rst nine months of 2011. While Great Britain (−5.0%), Italy (−11.3%), and Spain (−20.7%) recorded fewer new registrations, the level of the French market remained unchanged (+0.2%), and a double-digit growth was achieved in Germany (+10.8%).
The performances of the international markets were predominantly positive. Sales of light vehicles in the U.S. of close to 9.5 million cars rose by 10%. Demand in China has gained almost 8% since the beginning of the year, with close to 8.7 million passenger cars sold. However, car sales of September 2011 went down 7% compared to the prior-year month. Yet it must be taken into account that the prior-year month was particularly strong. The Russian market climbed by 45% to more than 1.9 million vehicles in the fi rst nine months of the year 2011. Japan is still affected considerably by its natural disaster. Since the beginning of the year, at close to 2.6 million units the number of passenger cars sold was down by one fourth compared to the prior-year period. However, fi rst indications of recovery became noticeable in the third quarter. 50% more cars were sold already than during the second quarter of 2011.
In July 2011 ELMOS announced that its South Korean partner foundry, MagnaChip Semiconductor, ramped up production and supplied 0.35μm automotive-qualifi ed wafers to ELMOS. In the year 2008 MagnaChip and ELMOS had signed a cooperation agreement for the joint development of automotive semiconductor process technologies.
ELMOS joined an Asian energy company in July 2011 as investor in TetraSun Inc. (California/U.S.A.). The start-up TetraSun develops a new kind of monocrystalline silicon solar cells.
In July 2011 ELMOS concluded an agreement with WT Microelectronics according to which the Taiwan-based company will act as global distributor for ELMOS with an emphasis on the Asian markets, especially China and Taiwan.
Moreover, ELMOS has introduced new products. Among them is the world's fi rst automotive network semiconductor certifi ed under the latest conformity tests according to bus standard PSI5 specifi cation V1.3. A sensor signal readout chip with SENT interface and an EC motor driver with full functionality for setting up a complete, low-cost system were presented as well.
The staff of the ELMOS Group came to 998 employees as of September 30, 2011. The number of employees has hardly changed (+0.7%) from December 31, 2010 (991 employees). The staff reduction caused by the sale of the special packaging business as of December 31, 2010 is opposed by an increase in employees due to the intensifi cation of research and development and increased sales activity, particularly in Asia.
Other subsidiaries
ELMOS Advanced Packaging
After the ELMOS share had maintained its positive performance until the middle of the year, it could not escape the pull of uncertainty in the capital markets any longer. Over the fi rst nine months of 2011, the ELMOS share lost 27.2%, closing at 6.85 Euro on September 30, 2011. Market capitalization at that time amounted to 133.0 million Euro (based on 19.4 million shares outstanding). The share reached its high on April 6, 2011 at 11.98 Euro and its low on September 12, 2011 at 6.25 Euro (Xetra closing prices all). The average daily trading volume came to 51.3 thousand shares over the fi rst nine months of 2011 (Xetra and Frankfurt fl oor), thus signifi cantly above the 2010 average amount (42.3 thousand shares).
The ELMOS share showed a similar performance over the fi rst nine months of 2011 as the indices of relevance and most competitors did. DAX, TecDax, DAX Sector Technology, and Technology All Share lost −20.4%, −22.1%, −28.0%, and −21.8%, respectively, in the period under review. ELMOS Semiconductor AG holds 105,931 own shares (treasury stock) as of September 30, 2011.
Fidelity Management & Research Company fell below the 3% voting rights threshold on January 7, 2011. As of that date, the company held 2.95% or 571,782 ELMOS shares. On January 25, 2011 the parent FMR LLC also fell below the 3% voting rights threshold, considering attributed voting rights of its subsidiaries. As of that date, the company held 2.96% or 575,000 voting rights in ELMOS, including attributed voting rights of its subsidiaries.
On March 3, 2011 JP Morgan Asset Management (UK) exceeded the voting rights threshold of 3%, holding 3.01% or 583,766 voting rights as of that date. On March 15, 2011, it fell below the 3% voting rights threshold again. As of that date, the company held 2.97% or 575,750 voting rights.
On March 4, 2011 FPM Funds SICAV exceeded the voting rights threshold of 3% and held 3.02% or 585,785 voting rights as of that date. After FPM Funds SICAV had fallen below the 3% voting rights threshold on May 26, 2011, holding 2.98% or 579,100 voting rights as of that date, it reported that it exceeded the 3% voting rights threshold again on June 30, 2011, as of that date holding 3.01% or 584,531 voting rights.
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, employee representative Graduate engineer | Dortmund
Sven-Olaf Schellenberg, employee representative Graduate physicist | Dortmund
Dr. Klaus G. Weyer Graduate physicist | Schwerte
Graduate physicist | Lüdenscheid
Nicolaus Graf von Luckner Graduate economist | Oberursel
Reinhard Senf Graduate engineer | Iserlohn
Jürgen Höllisch Engineer | Purbach, Austria
Risk management and the individual corporate risks and opportunities are described in our Annual Report 2010. Over the fi rst nine months of 2011 no material changes of the company's risks and opportunities as detailed therein have occurred. At present no risks are visible that could either separately or collectively jeopardize the company's continued existence.
The macroeconomic situation continues to be determined by local and global crises such as the economic crisis in some euro countries.
ELMOS has reached important milestones over the past months. South Korean cooperation partner MagnaChip has started series deliveries for the automotive industry, the conversion and expansion of the manufacturing site in Dortmund has made substantial progress, and last not least, the investment in TetraSun opens up new options for the future. ELMOS has also made considerable headway with its stated goal to advance the expansion of business in Asia by establishing branches in these markets as well as by contracting additional distributors.
The forecast of March 2011 for the year 2011 is confi rmed. Due to the rather defensive ordering behavior of our customers at present, sales in 2011 will achieve the lower range of the stated margin of 190 to 200 million Euro. On the other hand, though, the operating effi ciency has developed rather positively in the course of the year. Therefore ELMOS now anticipates an EBIT margin of more than 13%. Capital expenditures are scheduled to come to less than 15% of sales. The free cash fl ow will be positive. This forecast is based on an exchange rate of USD 1.40/EUR.
In the medium and long term, ELMOS will benefi t from the global megatrends: increasing urbanization, more renewable energy sources (and their effi cient exploitation), and more as well as environmentally sound mobility. ELMOS will make decisive contributions to all of these dynamically growing market segments.
| Assets | 9/30/2011 thousand Euro |
12/31/2010 thousand Euro |
|---|---|---|
| Non-current assets | ||
| Intangible assets* | 29,785 | 30,589 |
| Property, plant and equipment* | 69,071 | 69,494 |
| Investments accounted for at equity | 3,287 | 0 |
| Securities* | 7,700 | 6,272 |
| Investments** | 469 | 911 |
| Other fi nancial assets* | 2,089 | 2,090 |
| Deferred tax assets | 3,814 | 5,015 |
| Total non-current assets | 116,215 | 114,371 |
| Current assets | ||
| Inventories* | 39,450 | 35,826 |
| Trade receivables | 26,221 | 25,328 |
| Securities | 7,855 | 3,033 |
| Other fi nancial assets | 5,132 | 5,253 |
| Other receivables | 4,778 | 3,148 |
| Income tax assets | 2,957 | 2,926 |
| Cash and cash equivalents | 56,900 | 58,010 |
| 143,293 | 133,524 | |
| Assets classifi ed as held for sale | 3,469 | 1,291 |
| Total current assets | 146,762 | 134,815 |
| Total assets | 262,977 | 249,186 |
*Cf. note 3
| Equity and liabilities | 9/30/2011 thousand Euro |
12/31/2010 thousand Euro |
|---|---|---|
| Equity | ||
| Equity attributable to owners of the parent |
||
| Share capital* | 19,414 | 19,414 |
| Treasury stock* | – 106 | – 119 |
| Additional paid-in capital | 88,421 | 88,486 |
| Surplus reserve | 102 | 102 |
| Other equity components | –2,257 | – 1,740 |
| Retained earnings | 76,223 | 66,380 |
| 181,797 | 172,523 | |
| Non-controlling interests | 587 | –227 |
| Total equity | 182,384 | 172,296 |
| Liabilities | ||
| Non-current liabilities | ||
| Provisions | 258 | 376 |
| Financial liabilities | 40,371 | 40,101 |
| Other liabilities | 1,600 | 1,781 |
| Deferred tax liabilities | 2,871 | 1,316 |
| Total non-current liabilities | 45,100 | 43,574 |
| Current liabilities | ||
| Provisions | 10,370 | 9,568 |
| Income tax liabilities | 3,887 | 2,627 |
| Financial liabilities | 540 | 374 |
| Trade payables | 18,044 | 18,792 |
| Other liabilities | 2,652 | 1,955 |
| Total current liabilities | 35,493 | 33,316 |
| Total liabilities | 80,593 | 76,890 |
| Total equity and liabilities | 262,977 | 249,186 |
*Cf. note 3
| 3rd quarter | 7/1 – 9/30/2011 thousand Euro |
in percent of sales |
7/1 – 9/30/2010 thousand Euro |
in percent of sales |
Change |
|---|---|---|---|---|---|
| Sales | 47,982 | 100.0% | 46,295 | 100.0% | 3.6% |
| Cost of sales | 24,911 | 51.9% | 23,930 | 51.7% | 4.1% |
| Gross profi t | 23,071 | 48.1% | 22,365 | 48.3% | 3.2% |
| Research and development expenses | 8,340 | 17.4% | 7,269 | 15.7% | 14.7% |
| Distribution expenses | 3,992 | 8.3% | 3,137 | 6.8% | 27.3% |
| Administrative expenses | 4,484 | 9.3% | 4,350 | 9.4% | 3.1% |
| Operating income before other operating expenses/(income) | 6,255 | 13.0% | 7,608 | 16.4% | –17.8% |
| Earnings from investments accounted for at equity | 46 | 0.1% | 0 | 0.0% | n/a |
| Finance income | –433 | –0.9% | –266 | –0.6% | 63.1% |
| Finance expenses | 599 | 1.2% | 621 | 1.3% | –3.6% |
| Foreign exchange gains | –138 | –0.3% | –132 | –0.3% | 4.6% |
| Other operating income | –870 | –1.8% | –713 | –1.5% | 22.0% |
| Other operating expenses | 319 | 0.7% | 1,046 | 2.3% | –69.5% |
| Earnings before taxes | 6,732 | 14.0% | 7,051 | 15.2% | –4.5% |
| Income taxes | |||||
| Current income tax expense | 271 | 0.6% | 746 | 1.6% | –63.7% |
| Deferred taxes | 1,092 | 2.3% | 1,081 | 2.3% | 1.0% |
| 1,363 | 2.8% | 1,827 | 3.9% | –25.4% | |
| Net income | 5,369 | 11.2% | 5,224 | 11.3% | 2.8% |
| Other comprehensive income | |||||
| Foreign currency adjustments without deferred tax effect | 118 | –328 | |||
| Foreign currency adjustments with deferred tax effect | 980 | –1,729 | |||
| Deferred taxes (on foreign currency adjustments with deferred tax effect) |
–262 | 441 | |||
| Value differences with respect to hedges | –702 | –588 | |||
| Deferred taxes (on value differences with respect to hedges) | 226 | 143 | |||
| Available-for-sale fi nancial assets | 24 | 0 | |||
| Deferred taxes (on available-for-sale fi nancial assets) | –8 | 0 | |||
| Other comprehensive income after taxes | 376 | –2,062 | |||
| Total comprehensive income after taxes | 5,745 | 3,162 | |||
| Net income attributable to: | |||||
| Owners of the parent | 5,285 | 11.0% | 5,204 | 11.3% | 1.6% |
| Non-controlling interests | 84 | 0.2% | 20 | 0.0% | >100.0% |
| 5,369 | 11.2% | 5,224 | 11.3% | 2.8% | |
| Total comprehensive income attributable to: | |||||
| Owners of the parent | 5,661 | 3,142 | |||
| Non-controlling interests | 84 | 20 | |||
| 5,745 | 3,162 | ||||
| Earnings per share (with respect to net income) | |||||
| Basic earnings per share (in Euro) | 0.27 | 0.27 | |||
| Fully diluted earnings per share (in Euro) | 0.27 | 0.27 | |||
| Earnings before interest and taxes (EBIT) | 7/1 – 9/30/2011 thousand Euro |
in percent of sales |
7/1 – 9/30/2010 thousand Euro |
in percent of sales |
Change |
| Earnings before interest and taxes (EBIT) | 6,255 | 13.0% | 7,608 | 16.4% | –17.8% |
| Operating income before other operating expenses/(income) | –138 | –0.3% | –132 | –0.3% | 4.6% |
| Foreign exchange gains | –550 | –1.1% | 333 | 0.8% | n/a |
| EBIT | 6,943 | 14.5% | 7,407 | 16.0% | –6.3% |
| 9 months | 1/1 – 9/30/2011 thousand Euro |
in percent of sales |
1/1 – 9/30/2010 thousand Euro |
in percent of sales |
Change |
|---|---|---|---|---|---|
| Sales | 145,319 | 100.0% | 136,075 | 100.0% | 6.8% |
| Cost of sales | 79,117 | 54.4% | 75,511 | 55.5% | 4.8% |
| Gross profi t | 66,202 | 45.6% | 60,564 | 44.5% | 9.3% |
| Research and development expenses | 24,887 | 17.1% | 22,068 | 16.2% | 12.8% |
| Distribution expenses | 11,289 | 7.8% | 9,274 | 6.8% | 21.7% |
| Administrative expenses | 12,879 | 8.9% | 13,474 | 9.9% | –4.4% |
| Operating income before other operating expenses/(income) | 17,147 | 11.8% | 15,749 | 11.6% | 8.9% |
| Earnings from investments accounted for at equity | 46 | 0.0% | 0 | 0.0% | n/a |
| Finance income | –1,215 | –0.8% | –690 | –0.5% | 76.1% |
| Finance expenses | 1,806 | 1.2% | 1,830 | 1.3% | –1.3% |
| Foreign exchange gains | –235 | –0.2% | –26 | 0.0% | >100.0% |
| Other operating income | –3,142 | –2.2% | –2,149 | –1.6% | 46.2% |
| Other operating expenses | 1,417 | 1.0% | 2,302 | 1.7% | –38.4% |
| Earnings before taxes | 18,470 | 12.7% | 14,482 | 10.6% | 27.5% |
| Income taxes | |||||
| Current income tax expense | 1,532 | 1.1% | 906 | 0.7% | 69.1% |
| Deferred taxes | 2,928 | 2.0% | 3,080 | 2.2% | –5.0% |
| 4,460 | 3.1% | 3,986 | 2.9% | 11.9% | |
| Net income | 14,010 | 9.6% | 10,496 | 7.7% | 33.5% |
| Other comprehensive income | |||||
| Foreign currency adjustments without deferred tax effect | 127 | 136 | |||
| Foreign currency adjustments with deferred tax effect | –146 | 760 | |||
| Deferred taxes (on foreign currency adjustments | |||||
| with deferred tax effect) | 24 | –194 | |||
| Value differences with respect to hedges | –770 | –588 | |||
| Deferred taxes (on value differences with respect to hedges) | 248 | 143 | |||
| Available-for-sale fi nancial assets | 0 | 0 | |||
| Deferred taxes (on available-for-sale fi nancial assets) | 0 | 0 | |||
| Other comprehensive income after taxes | –517 | 257 | |||
| Total comprehensive income after taxes | 13,493 | 10,753 | |||
| Net income attributable to: | |||||
| Owners of the parent | 13,767 | 9.5% | 10,463 | 7.7% | 31.6% |
| Non-controlling interests | 243 | 0.2% | 33 | 0.0% | >100.0% |
| 14,010 | 9.6% | 10,496 | 7.7% | 33.5% | |
| Total comprehensive income attributable to: | |||||
| Owners of the parent | 13,250 | 10,720 | |||
| Non-controlling interests | 243 | 33 | |||
| 13,493 | 10,753 | ||||
| Earnings per share (with respect to net income) | |||||
| Basic earnings per share (in Euro) | 0.71 | 0.54 | |||
| Fully diluted earnings per share (in Euro) | 0.70 | 0.53 | |||
| Earnings before interest and taxes (EBIT) | 1/1 – 9/30/2011 thousand Euro |
in percent of sales |
1/1 – 9/30/2010 thousand Euro |
in percent of sales |
Change |
| Operating income before other operating expenses/(income) | 17,147 | 11.8% | 15,749 | 11.6% | 8.9% |
| Exchange rate gains | –235 | –0.2% | –26 | 0.0% | >100.0% |
| Other operating expenses/(income) | –1,725 | –1.2% | 153 | 0.1% | n/a |
| EBIT | 19,107 | 13.1% | 15,622 | 11.5% | 22.3% |
| Equity attributable to owners of the parent | ||||||
|---|---|---|---|---|---|---|
| Shares thousand shares |
Share capital thousand Euro |
Treasury stock thousand Euro |
Additional paid-in capital thousand Euro |
Surplus reserve thousand Euro |
Other equity components Revaluation reserve thousand Euro |
|
| January 1, 2010 (after corrections according to IAS 8) |
19,414 | 19,414 | 0 | 89,001 | 102 | 0 |
| Net income | ||||||
| Other comprehensive income for the period |
||||||
| Total comprehensive income | ||||||
| Stock option expense | 109 | |||||
| Acquisition of own shares | –120 | –722 | ||||
| September 30, 2010 | 19,414 | 19,414 | –120 | 88,388 | 102 | 0 |
| January 1, 2011 | 19,414 | 19,414 | –119 | 88,486 | 102 | 0 |
| Net income | ||||||
| Other comprehensive income for the period |
||||||
| Total comprehensive income | ||||||
| Share-based remuneration | 13 | 88 | ||||
| Changes in basis of consolidation | ||||||
| Dividend payout | ||||||
| Stock option expense | 220 | |||||
| Acquisition of shares held by other shareholders |
– 610 | |||||
| Newly created shares held by other shareholders |
103 | |||||
| Other changes | 134 | |||||
| September 30, 2011 | 19,414 | 19,414 | –106 | 88,421 | 102 | 0 |
| Group | Non-controlling interests |
Equity attributable to owners of the parent | |||
|---|---|---|---|---|---|
| Total thousand Euro |
Total thousand Euro |
Total thousand Euro |
Retained earnings thousand Euro |
Other equity components Foreign currency translations thousand Euro |
Other equity components Hedges thousand Euro |
| 154,412 | –242 | 154,654 | 48,626 | –2,489 | 0 |
| 10,496 | 33 | 10,463 | 10,463 | ||
| 257 | 257 | 702 | – 445 | ||
| 10,753 | 33 | 10,720 | 10,463 | 702 | – 445 |
| 109 | 109 | ||||
| – 842 | – 842 | ||||
| 164,432 | –209 | 164,641 | 59,089 | –1,787 | – 445 |
| 172,296 | –227 | 172,523 | 66,380 | –1,801 | 61 |
| 14,010 | 243 | 13,767 | 13,767 | ||
| – 517 | – 517 | 5 | – 522 | ||
| 13,493 | 243 | 13,250 | 13,767 | 5 | – 522 |
| 101 | 101 | ||||
| –80 | –80 | –80 | |||
| – 3,859 | – 3,859 | – 3,859 | |||
| 220 | 220 | ||||
| 0 | 610 | – 610 | |||
| 103 | 103 | ||||
| 110 | – 39 | 149 | 15 | ||
| 182,384 | 587 | 181,797 | 76,223 | – 1,796 | – 461 |
| 1/1 – 9/30/2011 thousand Euro |
1/1 – 9/30/2010 thousand Euro |
7/1 – 9/30/2011 thousand Euro |
7/1 – 9/30/2010 thousand Euro |
|
|---|---|---|---|---|
| Cash fl ow from operating activities | ||||
| Net income | 14,010 | 10,496 | 5,368 | 5,224 |
| Depreciation and amortization | 13,437 | 11,909 | 4,727 | 4,025 |
| Write-down of investments | 34 | 0 | 0 | 0 |
| Financial result | 591 | 1,140 | 166 | 356 |
| Other non-cash expenses | 3,176 | 3,080 | 1,340 | 1,081 |
| Current income tax expense | 1,532 | 906 | 271 | 746 |
| Expenses for stock option plans and stock award plan | 220 | 109 | 79 | 42 |
| Changes in pension provisions | –118 | –176 | –37 | –80 |
| Changes in net working capital: | ||||
| Trade receivables | –893 | –3,736 | 988 | 1,183 |
| Inventories | –3,624 | –4,143 | –3,052 | –2,265 |
| Securities | –4,822 | 0 | –2,336 | 0 |
| Other assets | –1,599 | –1,559 | –601 | –839 |
| Trade payables | –748 | 3,611 | –1,566 | –3,487 |
| Other provisions and other liabilities | 820 | 1,650 | 796 | –592 |
| Income tax refunds/payments | –303 | 277 | 263 | –334 |
| Interest paid | –1,806 | –1,830 | –599 | –621 |
| Interest received | 1,215 | 690 | 433 | 266 |
| Cash fl ow from operating activities | 21,122 | 22,424 | 6,240 | 4,705 |
| Cash fl ow from investing activities | ||||
| Capital expenditure for intangible assets | –2,457 | –2,040 | –857 | –675 |
| Capital expenditure for property, plant and equipment | –10,861 | –8,935 | –1,192 | –2,607 |
| Payments for investments | –2,922 | –407 | –2,922 | 0 |
| Disposal of investments | 33 | 0 | 0 | 0 |
| Payments for acquisitions less acquired cash and cash equivalents | –557 | 0 | 0 | 0 |
| Payments for/Disposal of non-current assets held for sale | –2,179 | –153 | –2,798 | 528 |
| Disposal of property, plant and equipment | 1,557 | 1,139 | 464 | 85 |
| Payments for securities | –1,427 | –6,322 | 2,064 | –3,317 |
| Cash fl ow from investing activities | –18,813 | –16,718 | –5,241 | –5,986 |
| Cash fl ow from fi nancing activities | ||||
| Repayment/Borrowing of non-current liabilities | 493 | –319 | 118 | –118 |
| Repayment/Borrowing of current liabilities to banks | –239 | –197 | 0 | 85 |
| Issue of own shares | 102 | 0 | 0 | 0 |
| Acquisition of own shares | 0 | –841 | 0 | –339 |
| Dividend payout | –3,859 | 0 | 0 | 0 |
| Newly created shares held by other shareholders | 103 | 0 | 0 | 0 |
| Other changes | 53 | 0 | 1 | 0 |
| Cash fl ow from fi nancing activities | –3,347 | –1,357 | 119 | –372 |
| Increase/Decrease in cash and cash equivalents | –1,038 | 4,349 | 1,118 | –1,653 |
| Effect of exchange rate changes on cash and cash equivalents | –72 | 84 | 151 | –181 |
| Cash and cash equivalents at beginning of reporting period | 58,010 | 46,841 | 55,631 | 53,108 |
| Cash and cash equivalents at end of reporting period | 56,900 | 51,274 | 56,900 | 51,274 |
The condensed interim consolidated fi nancial statements for the 3rd quarter 2011 were released for publication in November 2011 pursuant to Management Board resolution.
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 the District Court (Amtsgericht) Dortmund, section B, under no. 13698. The articles of incorporation are in effect in the version of March 26, 1999, last amended by shareholders' resolution of May 17, 2011.
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) and 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 France, Asia, and the U.S. and it cooperates with other German and international companies in the development and production of ASIC chips.
The condensed interim consolidated fi nancial statements for the period from January 1 to September 30, 2011 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, 2010.
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, 2010, with the exception of the new or amended IFRS Standards and Interpretations listed below. The application of these Standards and Interpretations had no effect on the group's asset situation, fi nances and profi t situation.
| -> Amendment | Limited Exemption from Comparative |
|---|---|
| -> to IFRS 1 | IFRS 7 Disclosures for First-time Adopters |
| -> Amendment | Related Party Disclosures |
| -> to IAS 24 | |
| -> Amendment | Classification of Rights Issues |
| -> to IAS 32 | |
| -> Amendment | Prepayments of a Minimum Funding |
| -> to IFRIC 14 | Requirement |
| -> IFRIC 19 | Extinguishing Financial Liabilities |
| with Equity Instruments |
The company makes provisions for pension and partial retirement obligations pursuant to IAS 19. An actuarial interest rate of 5.1% has been applied for 2011, the same rate as applied as of December 31, 2010.
There were no exceptional business transactions in the third quarter of 2011.
Two lawsuits pending as of December 31, 2010 were settled in the fi rst half-year 2011. The amounts payable under those settlement agreements were covered by corresponding provisions made as of the end of the year 2010.
The ELMOS Group's basis of consolidation has been expanded by four companies in 2011. First of all, a 50% interest in a joint venture was acquired. This company was included in the consolidated fi nancial statements by way of proportional consolidation with economic effect as of January 1, 2011. Second of all, a subsidiary founded in South Korea in 2010 has been included in the fi nancial statements 2011 by way of full consolidation for the fi rst time. The third company is a subsidiary founded in March 2011 in Singapore, the fourth new entry is a second-tier subsidiary established in July 2011 in China. These changes in the basis of consolidation have altogether no material effects on the group's asset situation, fi nances and profi t situation.
Within the framework of optimizing the corporate structure, previously fully consolidated German subsidiary EL-MOS Industries GmbH was merged into ELMOS Semiconductor AG by merger agreement of June 20, 2011.
In July 2011 ELMOS Semiconductor AG increased its minority interest in California-based TetraSun Inc. through U.S. subsidiary Silicon Microstructures Inc., Milpitas/U.S.A., by investing a high single-digit million U.S. dollar amount. TetraSun develops a new kind of monocrystalline silicon solar cells, reaching high effi ciency at low production costs. In contrast to December 31, 2010, the interest in this company is included in the interim fi nancial statements as of September 30, 2011 as an associated company due to the attainment of signifi cant infl uence.
The macroeconomic situation continues to be determined by local and global crises such as the economic crisis in some euro countries. The business of ELMOS Semiconductor AG is not subject to material seasonal fl uctuations.
The segments correspond with the internal organizational and reporting structure of the ELMOS Group. The defi nition of segments considers the different products and services supplied by the group. The accounting principles of the individual segments correspond with 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, France, South Africa, Asia, and the U.S. 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. The product portfolio includes micro-electro-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 September 30, 2011 and 2010, respectively) as well as on assets of the group's business segments (as of September 30, 2011 and December 31, 2010).
| 9 months as of 9/30/2011 | Semiconductor thousand Euro |
Micromechanics thousand Euro |
Consolidation thousand Euro |
Total thousand Euro |
|---|---|---|---|---|
| Sales | ||||
| Third-party sales | 132,643 | 12,676 | 0 | 145,319 |
| Inter-segment sales | 168 | 459 | – 6271 | 0 |
| Total sales | 132,811 | 13,135 | –627 | 145,319 |
| Earnings | ||||
| Segment earnings | 17,192 | 1,915 | 0 | 19,107 |
| Earnings from investments accounted for at equity | 0 | 46 | 0 | 46 |
| Finance income | – 1,215 | |||
| Finance expenses | 1,806 | |||
| Earnings before taxes | 18,470 | |||
| Income taxes | 4,460 | |||
| Net income including non-controlling interests | 14,010 | |||
| Assets | ||||
| Segment assets | 181,615 | 13,935 | 63,6712 | 259,221 |
| Investments | 469 | 3,287 | 3,756 | |
| Total assets | 262,977 | |||
| Other segment information | ||||
| Capital expenditures | 12,667 | 651 | 13,318 | |
| Depreciation and amortization | 12,455 | 982 | 13,437 |
Sales from inter-segment transactions are eliminated for consolidation purposes.
Non-attributable assets as of September 30, 2011 include cash and cash equivalents (56,900 thousand Euro), income tax assets (2,957 thousand Euro),
and deferred taxes (3,814 thousand Euro), as these assets are controlled on group level.
| Semiconductor | Micromechanics | Consolidation | Total | |
|---|---|---|---|---|
| 9 months as of 9/30/2010 | thousand Euro | thousand Euro | thousand Euro | thousand Euro |
| Sales | ||||
| Third-party sales | 124,941 | 11,134 | 0 | 136,075 |
| Inter-segment sales | 246 | 140 | – 3863 | 0 |
| Total sales | 125,187 | 11,274 | –386 | 136,075 |
| Earnings | ||||
| Segment earnings | 15,057 | 565 | 0 | 15,622 |
| Finance income | –690 | |||
| Finance expenses | 1,830 | |||
| Earnings before taxes | 14,482 | |||
| Income taxes | 3,986 | |||
| Net income including non-controlling interests | 10,496 | |||
| Assets (as of 12/31/2010) | ||||
| Segment assets | 168,837 | 13,487 | 65,9514 | 248,275 |
| Investments | 537 | 374 | 0 | 911 |
| Total assets | 249,186 |
Sales from inter-segment transactions are eliminated for consolidation purposes.
Non-attributable assets as of December 31, 2010 include cash and cash equivalents (58,010 thousand Euro), income tax assets (2,926 thousand Euro),
and deferred taxes (5,015 thousand Euro), as these assets are controlled on group level.
| Sales generated with third-party customers |
9 months as of 9/30/2011 thousand Euro |
9 months as of 9/30/2010 thousand Euro |
|---|---|---|
| Germany | 52,199 | 50,964 |
| EU | 48,007 | 48,306 |
| U.S.A. | 11,217 | 9,7551 |
| Asia/Pacifi c | 24,030 | 17,113 |
| Others | 9,866 | 9,9371 |
| 145,319 | 136,075 |
| Geographical distribution of non-current assets |
9/30/2011 thousand Euro |
12/31/2010 thousand Euro |
|---|---|---|
| Germany | 96,401 | 95,758 |
| EU | 8,678 | 8,767 |
| U.S.A. | 7,314 | 4,829 |
| Others | 8 | 2 |
| 112,401 | 109,356 |
Prior-year amount has been adjusted
| Development of selected non-current assets from January 1 to September 30, 2011 |
Net book value 1/1/2011 thousand Euro |
Increase in goodwill from fi rst-time consolidation thousand Euro |
Additions thousand Euro |
Disposals/Other movements thousand Euro |
Depreciation and amortization thousand Euro |
Net book value 9/30/2011 thousand Euro |
|---|---|---|---|---|---|---|
| Intangible assets | 30,589 | 534 | 2,457 | –30 | 3,765 | 29,785 |
| Property, plant and equipment | 69,494 | 0 | 10,861 | –1,612 | 9,672 | 69,071 |
| Investments accounted for at equity |
0 | 0 | 3,287 | 0 | 0 | 3,287 |
| Securities | 6,272 | 0 | 1,427 | 0 | 0 | 7,700 |
| Investments | 911 | 0 | 0 | –408 | 34 | 469 |
| Other fi nancial assets | 2,090 | 0 | 0 | –1 | 0 | 2,089 |
| 109,356 | 534 | 18,033 | −2,051 | 13,471 | 112,401 |
Additions to securities relate to investments in bonds with a maturity in excess of 12 months in the amount of 1,427 thousand Euro. The position disposals/other movements includes negative currency adjustments in the amount of 88 thousand Euro. The addition in investments accounted for under the equity method relates to the investment in TetraSun Inc. Until signifi cant infl uence was attained in July 2011, the interest was recognized under the position "investments". Depreciation of property, plant and equipment include impairment loss in the amount of 381 thousand Euro. Impairment loss was recognized under cost of sales in the consolidated statement of comprehensive income. Assets are attributable to the semiconductor segment.
| 9/30/2011 thousand Euro |
12/31/2010 thousand Euro |
|
|---|---|---|
| Raw materials | 7,963 | 6,709 |
| Work in process | 24,159 | 20,929 |
| Finished goods | 7,328 | 8,188 |
| 39,450 | 35,826 |
As of September 30, 2011 the share capital of ELMOS Semiconductor AG consists of 19,414,205 shares. At present the company holds 105,931 own shares (treasury stock).
Pursuant to shareholders' resolution of May 17, 2011, a dividend in the amount of EUR 0.20 per share has been paid to the shareholders. Due to this dividend payout, the retained earnings were reduced by 3,859 thousand Euro.
As of September 30, 2011 altogether 954,973 options from stock option plans are outstanding. The options are attributable to the tranches as follows:
| 2009 | 2010 | 2011 | Total | |
|---|---|---|---|---|
| Year of resolution and issue | 2009 | 2010 | 2011 | |
| Exercise price (Euro) | 3.68 | 7.49 | 8.027 | |
| Blocking period ex issue (years) | 3 | 4 | 4 | |
| Exercise period after blocking period (years) | 3 | 3 | 3 | |
| Options outstanding as of 12/31/2010 (number) | 465,950 | 244,415 | 0 | 710,365 |
| 1/1 - 9/30/2011 granted (number) | 0 | 0 | 250,000 | 250,000 |
| 1/1 - 9/30/2011 exercised (number) | 0 | 0 | 0 | 0 |
| 1/1 - 9/30/2011 forfeited (number) | 3,850 | 1,542 | 0 | 5,392 |
| Options outstanding as of 9/30/2011 (number) | 462,100 | 242,873 | 250,000 | 954,973 |
| Options exercisable as of 9/30/2011 (number) | 0 | 0 | 0 | 0 |
As reported in the consolidated fi nancial statements for the fi scal year ended December 31, 2010, the ELMOS Group maintains business relationships with related companies and individuals in the context of usual business activity.
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 from January 1 to September 30, 2011.
| Date/place | Name | Function | Transaction | Number | Price/Basic price (Euro) |
Total volume (Euro) |
|---|---|---|---|---|---|---|
| 6/24/2011 Xetra |
ZOE Beteiligungs GmbH |
Legal entity closely related to the chairman of the Supervisory Board |
Purchase of ELMOS shares |
10,000 | 9.911 | 99,110 |
| 8/10/2011 Xetra |
Alegra GmbH & Co. KG |
Legal entity closely related to the CEO |
Purchase of ELMOS shares |
10,000 | 7.419 | 74,190 |
| 8/26/2011 Xetra |
ZOE Beteiligungs GmbH |
Legal entity closely related to the chairman of the Supervisory Board |
Purchase of ELMOS shares |
11,100 | 6.697 | 74,341 |
There have been no events of particular signifi cance since the end of the third quarter.
Dortmund, November 2011
Dr. Anton Mindl Nicolaus Graf von Luckner Reinhard Senf Jürgen Höllisch
Phone + 49 (0) 231 - 75 49 - 287 Fax + 49 (0) 231 - 75 49 - 548 [email protected]
This interim report was released on November 3, 2011 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.
| 9-month results Q3/2011 (after trading hours) |
November 3, 2011 |
|---|---|
| Analysts' conference at the Equity Forum in Frankfurt |
November 23, 2011 |
| Preliminary Results 2011 (after trading hours) |
February 16, 2012 |
| Financial Results 2011 | March 15, 2012 |
| Press Conference | March 15, 2012 |
| Analysts Conference (Conference Call/Webcast) |
March 15, 2012 |
| Quarterly Results Q1/2012 (after trading hours) |
May 3, 2012 |
| AGM in Dortmund | May 8, 2012 |
| Quarterly Results Q2/2012 (after trading hours) |
August 8, 2012 |
| Quarterly Results Q3/2012 (after trading hours) |
November 6, 2012 |
Results are usually released after trading hours. Conference calls are usually conducted the day after the quarterly results are released.
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, 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.
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