Elmos Semiconductor SE

Quarterly Report • Nov 6, 2024

Quarterly statement Q3 2024

July 1 to September 30, 2024

Positive closing of the third quarter of 2024 and confirmation of the sales and EBIT outlook for 2024 Sales growth of $+3.4 \%$ to 156.6 million Euro in Q3 2024 with a $25.5 \%$ EBIT margin
"Elmos continued to develop positively in the third quarter, despite ongoing inventory adjustments by customers and increased uncertainties about the development of the automotive markets. We were able to continue our profitable growth path and, despite the somewhat less dynamic market development than in previous years, the anniversary year - Elmos turned 40 years old in 2024 - will once again be very successful for Elmos. The structural trend towards more intelligent electronics in modern vehicles remains stable and the growth opportunities for innovative and agile semiconductor companies like Elmos remain positive." Dr. Arne Schneider, CEO of Elmos Semiconductor SE

Key figures

in million Euro unless otherwise indicated	Q3 2024	Q3 2023	Change	9M 2024	9M 2023	Change
Sales	156.6	151.5	3.4\%	435.4	418.5	4.0\%
Gross profit	73.6	69.9	5.3\%	200.4	195.7	2.4\%
in \% of sales	47.0\%	46.1\%		46.0\%	46.8\%
Research and development expenses	12.7	16.3	$-22.0 \%$	45.8	51.0	$-10.1 \%$
in \% of sales	8.1\%	10.8\%		10.5\%	12.2\%
Operating results	46.2	40.2	14.9\%	112.3	104.0	8.0\%
in \% of sales	29.5\%	26.5\%		25.8\%	24.9\%
EBIT	39.9	41.6	$-4.0 \%$	109.7	107.5	2.0\%
in \% of sales	25.5\%	27.5\%		25.2\%	25.7\%
Consolidated net income after non-controlling interests	25.5	28.0	$-8.7 \%$	74.4	71.4	4.1\%
in \% of sales	16.3\%	18.4\%		17.1\%	17.1\%
Earnings per share (basic) in Euro	1.49	1.63	$-8.7 \%$	4.34	4.17	4.1\%
	09/30/2024	06/30/2024	Change	09/30/2024	12/31/2023	Change
Total assets	821.7	777.9	5.6\%	821.7	812.4	1.1\%
Shareholders' equity	508.6	483.0	5.3\%	508.6	447.9	13.5\%
in \% of total assets	61.9\%	62.1\%		61.9\%	55.1\%
Financial liabilities	102.2	103.9	$-1.6 \%$	102.2	118.7	$-13.9 \%$
Liquid assets and securities	75.5	30.8	$>100.0 \%$	75.5	108.3	$-30.3 \%$
Net debt	$-26.7$	$-73.1$	$-63.5 \%$	$-26.7$	$-10.4$	$>100.0 \%$
	Q3 2024	Q3 2023	Change	9M 2024	9M 2023	Change
Cash flow from operating activities	57.0	33.8	68.6\%	56.0	40.6	38.1\%
Capital expenditures	5.9	34.0	$-82.5 \%$	40.6	91.6	$-55.7 \%$
in \% of sales	3.8\%	22.4\%		9.3\%	21.9\%
Adjusted free cash flow	45.5	33.9	34.3\%	$-1.7$	$-21.5$	$-92.2 \%$
Operating adjusted free cash flow	45.5	$-3.3$	n/a	$-1.7$	$-58.7$	$-97.1 \%$

Definitions of selected financial indicators

• Capital expenditures: Capital expenditures for intangible assets and property, plant and equipment less capitalized development expenses.
• Adjusted free cash flow: Cash flow from operating activities less capital expenditures for/plus disposal of intangible assets and property, plant and equipment (including payments from changes in the scope of consolidation).
• Operating adjusted free cash flow: Cash flow from operating activities less capital expenditures for/plus disposal of intangible assets and property, plant and equipment and excluding effects from M\&A transactions.
• Further information on the key figures used can be found in the 2023 Annual Report at www.etmos.com.

Profit, financial position, as well as assets and liabilities

$\rightarrow$ Sales continued to develop positively in the third quarter of 2024 despite an unchanged challenging environment.
$\rightarrow$ EBIT and EBIT margin remain at a high level in the third quarter of 2024.
$\rightarrow$ Capital expenditures were reduced significantly in the third quarter of 2024.
$\rightarrow$ The adjusted free cash flow in the reporting period was primarily influenced by a strong operating cash flow and lower investments.
$\rightarrow$ The ratio of orders received for the next three months (Q4 2024) to sales over the past three months (Q3 2024), known as the book-to-bill ratio, is currently below one.

Sales by region

FY 2023
9M 2024

Guidance Fiscal Year 2024 (November 5, 2024)

Sales	Lower range of the unchanged sales guidance of 605 million Euro $\pm 25$ million Euro
Operating EBIT margin ${ }^{1}$	$25 \% \pm 2 \%$-percentage points
Capital expenditures (in \% of sales) ${ }^{2}$	$12 \% \pm 2 \%$-percentage points
Adjusted free cashflow ${ }^{3}$	positive
Assumed average exchange rate	1.10 EUR/USD

${ }^{1}$ EBIT margin excluding special items (e.g. effects from the closing of the sale of the Elmos wafer fab to Littelfuse Inc., USA).
${ }^{2}$ Capital expenditures for intangible assets and property, plant and equipment, less capitalized development expenses.
${ }^{3}$ Cash flow from operating activities less capital expenditures for/plus disposal of intangible assets and property, plant and equipment, including effects from the closing of the sale of the Elmos wafer fab to Littelfuse Inc., USA.

Explanation of the guidance for fiscal year 2024:
$\rightarrow$ For fiscal year 2024, Elmos expects sales in the lower range of the unchanged sales guidance of 605 million Euro $\pm 25$ million Euro and thus still a slight growth compared to the record sales of the previous year.
$\rightarrow$ The operating EBIT margin (excluding special items) is still expected at $25 \% \pm 2$ percentage points of sales.
$\rightarrow$ Following the high growth investments in previous years, the company expects a reduction in capital expenditures for property, plant and equipment, and intangible assets less capitalized development expenses to around $12 \% \pm 2$ percentage points of sales.
$\rightarrow$ For the full year 2024, Elmos now expects a positive adjusted free cash flow, including effects from the closing of the sale of the Elmos wafer fab to Littelfuse Inc., USA.

Current expectations may be affected in particular by geopolitical events such as the war in Ukraine, the conflict in the Middle East, by tighter sanctions and trade restrictions, by market influences such as inventory adjustments by customers, increasing prices, and potential shortages for energy, materials, services, and personnel.

Condensed consolidated statement of financial position

Assets $\mid$ inthousand tons	09/30/2024	12/31/2023
Intangible assets	60,214	40,757
Property, plant and equipment	291,323	292,132
Securities	726	13,422
Investments	1	1
Other financial assets	7,125	8,927
Deferred tax assets	818	656
Non-current assets	360,207	355,895
Inventories	212,182	191,526
Trade receivables	97,255	91,018
Securities	11,366	6,748
Other financial assets	4,073	5,524
Other receivables	17,435	21,110
Income tax assets	357	212
Cash and cash equivalents	62,004	85,629
Assets held for sale	56,777	54,736
Current assets	461,449	456,503
Total assets	821,655	812,398

Equity and liabilities $\mid$ in thousand tons
Share capital
17,700

Treasury shares	-561	-579
Additional paid-in capital	20,193	19,613
Surplus reserve	102	102
Other equity components	$-91$	$-254$
Retained earnings	470,691	410,857
Equity attributable to owners of the parent	508,035	447,439
Non-controlling interests	536	504
Equity	508,571	447,943
Financial liabilities	97,580	99,879
Deferred tax liabilities	15,420	9,814
Non-current liabilities	113,000	109,693
Provisions	29,229	22,735
Income tax liabilities	87,499	71,839
Financial liabilities	4,588	18,807
Trade payables	35,218	97,598
Other liabilities	40,236	40,304
Liabilities in connection with assets held for sale	3,315	3,480
Current liabilities	200,084	254,763
Liabilities	313,084	364,455
Total equity and liabilities	821,655	812,398

Financial calendar

Fiscal year 2025
Virtual Capital Markets Day 2024	November 11, 2024
Preliminary results 2024	February 18, 2025
Final results 2024	March 20, 2025
Quarterly results Q1/2025	May 6, 2025
Annual General Meeting	May 15, 2025
Quarterly results Q2/2025	July 31, 2025
Quarterly results Q3/2025	November 4, 2025

${ }^{1}$ The German Securities Trading Act (Wertpapierhandelsgesetz) and the Market Abuse Regulation oblige issuers to announce any information that may have a substantial price impact immediately, irrespective of the financial calendar. Therefore, we cannot rule out having to announce key figures of quarterly and annual results ahead of the dates mentioned above. As we can never rule out changes of dates, we recommend checking them in advance on the website (www.elmos.com)

Contract

Ralf Hoppe | Investor Relations

Phone: + 49 (0) 231-75 49-7000
Fax: + 49 (0) 231-75 49-111
invest@elmos.com

Elmos Semiconductor SE

Heinrich-Hertz-Straße 1

44227 Dortmund | Germany
Phone: + 49 (0) 231-75 49-0
Fax: + 49 (0) 231-75 49-149
info@elmos.com | www.elmos.com

Notes

This document is a quarterly statement pursuant to section 51a of the rules and regulations for the Frankfurter Wertpapierbörse. Due to calculation processes, tables and references may produce rounding differences from the mathematically exact values (monetary units, percentage statements, etc.)

Forward-looking statements

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 forward-looking 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 material differences are changes in general economic and business conditions, changes in exchange 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 provided for convenience only. The German text shall be the sole legally binding version