Elmos Semiconductor SE — Interim / Quarterly Report 2024

May 7, 2024

Quarterly statement Q1 2024

1

January 1 to March 31, 2024

Positive start into the new fi scal year – guidance for 2024 confi rmed Sales up by 4.5% to 136.8 million Euro in the fi rst quarter of 2024 – EBIT margin reaches 24.7%

"The successful start into 2024 forms a solid foundation for the further course of business. Despite ongoing geopolitical and economic uncertainties and temporary inventory adjustments following the end of the allocation, Elmos' business performance is robust, as expected. We are in an excellent position to participate sustainably in the structural growth of the automotive semiconductor market." Dr. Arne Schneider, CEO of Elmos Semiconductor SE

in million Euro unless otherwise indicated	Q1 2024	Q1 2023	Change
Sales	136.8	130.9	4.5%
Gross profit	62.6	59.3	5.6%
in % of sales	45.8%	45.3%
Research & development expenses	16.2	16.0	0.9%
in % vom Umsatz	11.8%	12.2%
Operating income before other operating expenses (-)/ income	31.1	30.7	1.5%
in % of sales	22.8%	23.4%
EBIT	33.8	31.8	6.4%
in % of sales	24.7%	24.3%
Consolidated net income after non-controlling interests	24.6	20.5	19.6%
in % of sales	18.0%	15.7%
Earnings per share (basic) in Euro	1.44	1.20	19.6%
		03/31/2024 12/31/2023	Change
Total assets	799.9	812.4	-1.6%
Shareholders' equity	472.9	447.9	5.6%
in % of total assets	59.1%	55.1%
Financial liabilities	118.4	118.7	-0.3%
Liquid assets and securities	58.4	108.3	-46.1%
Net debt	-60.0	-10.4	>100.0%
	Q1 2024	Q1 2023	Change
Operating cash flow	-23.1	-1.7	>100.0%
Capital expenditures	20.3	15.2	32.9%
Capital expenditures	14.8%	11.6%
Adjusted free cash flow	-48.9	-18.7	>100.0%

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).

Key figures Profit, financial position, as well as assets and liabilities

• -> Sales and earnings developed positively in the first quarter of 2024 despite ongoing geopolitical and economic uncertainties.
• -> EBIT and EBIT margin increased slightly compared to the same quarter of the previous year.
• -> Capital expenditures were at a higher level at the start of the year, as expected.
• -> Adjusted free cash flow was primarily influenced by year-end effects on working capital and was therefore negative.
• -> The ratio of orders received for the next three months to sales over the past three months, known as the book-to-bill ratio, stood at one at the end of the reporting period.

Sales by region

Guidance Fiscal Year 2024 (unchanged as of February 15, 2024)

Sales	605 million Euro ± 25 million Euro
Operating EBIT margin1	25% ± 2 percentage points
Capital expenditures (in % of sales)2	12% ± 2 percentage points
Operating adjusted free cash flow3	positive and significantly above the previous year's level (-24.3 million Euro)
Assumed average exchange rate	1.10 EUR/USD

¹ EBIT margin excluding 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, excluding effects from the closing of the sale of the Elmos wafer fab to Littelfuse Inc., USA.

Explanation of the guidance for fiscal year 2024:

The current outlook is unchanged from the guidance of February 15, 2024.

• -> For the 2024 financial year, Elmos expects to generate sales of 605 million Euro ± 25 million Euro and an operating EBIT margin of 25% ± 2 percentage points of sales. The anticipated operating EBIT margin does not include any effects from the closing of the sale of the Elmos wafer fab to Littelfuse Inc., USA, which is expected for the end of December 2024.
• -> Following the significant expansion of testing capacities, Elmos expects capital expenditures to decline year on year in 2024. The company therefore anticipates that capital expenditures for property, plant and equipment and intangible assets, less capitalized development costs, will amount to approximately 12% of sales ± 2 percentage points.
• -> For fiscal year 2024, Elmos expects positive operating adjusted free cash flow (excluding effects from the closing of the sale of the Elmos wafer fab to Littelfuse Inc., USA) to be significantly higher than in the previous year (-24.3 million Euro).

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, market turbulence, rising prices, and potential shortages for energy, materials, services, and personnel.

Condensed consolidated statement of financial position

Assets in thousand Euro	03/31/2024	12/31/2023
Intangible assets	46,862	40,757
Property, plant and equipment	297,357	292,132
Securities	4,108	13,422
Investments	1	1
Other financial assets	7,124	8,927
Deferred tax assets	765	656
Non-current assets	356,216	355,895
Inventories	224,046	191,526
Trade receivables	85,044	91,018
Securities	14,052	6,748
Other financial assets	3,242	5,524
Other receivables	23,845	21,110
Income tax assets	254	212
Cash and cash equivalents	35,849	85,629
Assets held for sale	57,311	54,736
Current assets	443,643	456,503
Total assets	799,859	812,398

Equity and liabilities in thousand Euro	03/31/2024	12/31/2023
Share capital	17,700	17,700
Treasury shares	-579	-579
Additional paid-in capital	19,780	19,613
Surplus reserve	102	102
Other equity components	-122	-254
Retained earnings	435,428	410,857
Equity attributable to owners of the parent	472,308	447,439
Non-controlling interests	578	504
Equity	472,887	447,943
Financial liabilities	98,905	99,879
Deferred tax liabilities	12,251	9,814
Non-current liabilities	111,156	109,693
Provisions	27,550	22,735
Income tax liabilities	75,026	71,839
Financial liabilities	19,469	18,807
Trade payables	48,224	97,598
Other liabilities	41,945	40,304
Liabilities in connection with assets held for sale	3,603	3,480
Current liabilities	215,817	254,763
Liabilities	326,973	364,455
Total equity and liabilities	799,859	812,398

in thousand Euro	Q1 2024	Q1 2023
Sales	136,803	130,914
Cost of sales	-74,192	-71,626
Gross profit	62,610	59,288
Research and development expenses	-16,164	-16,023
Distribution expenses	-7,047	-5,304
Administrative expenses	-8,270	-7,277
Operating income before other operating expenses (-)/ income	31,130	30,684
Foreign exchange gains	554	443
Other operating income	2,878	875
Other operating expenses	-771	-241
Earnings before interest and taxes (EBIT)	33,792	31,760
Finance income	379	88
Finance expenses	-768	-920
Earnings before taxes	33,403	30,928
Income tax	-8,758	-10,408
thereof current income tax	-7,193	-10,111
thereof deferred tax	-1,565	-297
Consolidated net income	24,645	20,520
thereof attributable to owners of the parent	24,571	20,543
thereof attributable to non-controlling interests	74	-23
Earnings per share	Euro	Euro
Basic earnings per share	1.44	1.20
Fully diluted earnings per share	1.44	1.20

Condensed consolidated income statement Condensed consolidated statement of cash flows

in thousand Euro	Q1 2024	Q1 2023
Consolidated net income	24,645	20,520
Depreciation and amortization	9,915	7,916
Losses from disposal of assets	552	5
Financial result	389	832
Other non-cash income (-)/expenses	-499	297
Current income tax	7,193	10,111
Expense for stock awards/share matching	167	176
Changes in net working capital:
Trade receivables	5,950	-7,381
Inventories	-32,439	-23,807
Other assets	-2,452	-5,906
Trade payables	-39,813	-3,538
Other provisions and other liabilities	7,089	3,964
Income tax payments (-)/ refunds	-4,049	-4,251
Interest paid	-82	-682
Interest received	379	88
Cash flow from operating activities	-23,056	-1,656
Capital expenditures for intangible assets	-8,062	-1,899
Capital expenditures for property, plant and equipment	-17,780	-15,287
Payments from disposal of non-current assets	20	143
Proceeds from additions to the scope of consolidation	3	0
Disposal of/ investment in (-) securities	2,123	13,131
Payments for other financial assets	0	-26
Cash flow from investing activities	-23,696	-3,938
Payments from the repayment of financial liabilities to banks	-513	-513
Repayment of liabilities from installment purchase	0	-160
Repayment of leasing liabilities	-388	-338
Repayment of other financial liabilities	-280	-280
Other changes	-1	-16
Cash flow from financing activities	-1,182	-1,307
Decrease in cash and cash equivalents	-47,934	-6,901
Effect of exchange rate changes on cash and cash equivalents	34	-99
Cash and cash equivalents at beginning of reporting period	88,175	36,641
Cash and cash equivalents at end of reporting period	40,275	29,640
of which cash and cash equivalents of the disposal group	4,426	n/a

Financial calendar 2024

Quarterly results Q1/20241	May 7, 2024
Annual General Meeting	May 15, 2024
Quarterly results Q2/20241	August 1, 2024
Quarterly results Q3/20241	November 6, 2024

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).

Contact

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

Notice

This document is a quarterly statement in accordance with Section 51a Rules and Regulations for the Frankfurter Wertpapierbörse (Börsenordnung für die Frankfurter Wertpapierbörse). For mathematical reasons, tables and references may contain rounding differences to the exact figures (currency units, percentages, etc.).

Forward-looking statements

This report contains forward-looking statements 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 forward-looking statements. Among the factors that could cause such differences are changes in general economic and business conditions, fluctuations of exchange rates and interest rates, the introduction of competing products, lack of acceptance of new products, and changes in business strategy. Elmos neither intends nor assumes any obligation to update its statements with respect to future events.

This English translation is provided for convenience only. The German text shall be the sole legally binding version.