Quarterly Report • Aug 9, 2011
Quarterly Report
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HALF-YEAR REPORT HY1 2011
| 3-month comparison | 6-month comparison | |||||
|---|---|---|---|---|---|---|
| in million Euro or percent unless otherwise indicated |
4/1 – 6/30/2011 |
4/1 – 6/30/2010 |
Change | 1/1 – 6/30/2011 |
1/1 – 6/30/2010 |
Change |
| Sales | 49.2 | 46.4 | 6.0% | 97.3 | 89.8 | 8.4% |
| Semiconductor | 45.0 | 42.6 | 5.6% | 89.0 | 82.3 | 8.1% |
| Micromechanics | 4.2 | 3.8 | 11.4% | 8.3 | 7.4 | 12.0% |
| Gross profi t | 22.3 | 20.1 | 10.8% | 43.1 | 38.2 | 12.9% |
| in percent of sales | 45.3% | 43.4% | 44.3% | 42.5% | ||
| R&D expenses | 8.4 | 7.7 | 8.4% | 16.5 | 14.8 | 11.8% |
| in percent of sales | 17.0% | 16.7% | 17.0% | 16.5% | ||
| Operating income | 5.9 | 4.4 | 34.1% | 10.9 | 8.1 | 33.8% |
| in percent of sales | 11.9% | 9.4% | 11.2% | 9.1% | ||
| EBIT | 6.3 | 4.7 | 33.6% | 12.2 | 8.2 | 48.1% |
| in percent of sales | 12.9% | 10.2% | 12.5% | 9.1% | ||
| Net income for the period after non-controlling interests |
4.4 | 2.6 | 67.7% | 8.5 | 5.3 | 61.3% |
| in percent of sales | 9.0% | 5.7% | 8.7% | 5.9% | ||
| Basic earnings per share (Euro) | 0.23 | 0.14 | 68.5% | 0.44 | 0.27 | 62.2% |
| Operating cash fl ow | 6.9 | 7.4 | –6.2% | 14.9 | 17.7 | –16.0% |
| Capital expenditures | 6.0 | 5.6 | 6.7% | 11.3 | 7.7 | 46.5% |
| in percent of sales | 12.1% | 12.0% | 11.6% | 8.6% | ||
| Free cash fl ow1 | 1.3 | –1.4 | n/a | 1.3 | 7.0 | –81.3% |
| Adjusted free cash fl ow2 | 0.0 | 1.8 | n/a | 6.1 | 10.0 | –39.2% |
| in million Euro or percent | |||
|---|---|---|---|
| unless otherwise indicated | 6/30/2011 | 12/31/2010 | Change |
| Equity | 176.6 | 172.3 | 2.5% |
| in percent of total assets | 68.9% | 69.1% | |
| Employees (reporting date) | 976 | 991 | – 1.5% |
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 expenditures
Due to calculation processes, tables and references may produce rounding differences
from the mathematically exact values (monetary units, percentage statements, etc.).
In the 1st half-year 2011 ELMOS has again generated a sales increase. Sales of 97.3 million Euro represent a new record amount. This sales fi gure equals a 8.4% growth over the prior-year period (HY1 2010: 89.8 million Euro). Adjusted by sales of the special packaging business sold as of December 31, 2010, the 1st half-year 2011 gained even 12.0% on last year's period of comparison.
ELMOS has increased sales also by 3-month comparison once again. Sales of 49.2 million Euro in the 2nd quarter of 2011 are up compared to both prior-year quarter (Q2 2010: 46.4 million Euro or +6.0%) and previous quarter (Q1 2011: 48.1 million Euro or +2.3%).
The positive sales trend is due to growth recorded in the semiconductor segment as well as the micromechanics segment. The semiconductor segment generated sales of 89.0 million Euro in the 1st half-year 2011, equivalent to an increase of 8.1% over the prior-year period (HY1 2010: 82.3 million Euro). In spite of a weaker U.S. dollar compared to the prior-year period, the micromechanics segment grew even by 12.0% over the fi rst six months of 2011 to 8.3 million Euro (HY1 2010: 7.4 million Euro).
With respect to the regional breakdown of sales, the continued positive development in the region Asia/Pacifi c is
worth being pointed out. Its share in group sales of the fi rst half-year 2011 rose to 15.2% (HY1 2010: 12.3%). With a sales growth of 10.1% by half-year comparison, U.S. sales show a satisfactory trend as well.
The order intake has been sound over the fi rst six months. However, recently a slowdown in the dynamics of customers' order behavior has been noticeable. The relation of orders received to sales, the so-called book-to-bill, was slightly below one by the end of the second quarter of 2011.
| Region | 1/1 – 6/30/2011 thousand Euro |
in percent of sales |
1/1 – 6/30/2010 thousand Euro |
in percent of sales |
Change |
|---|---|---|---|---|---|
| Germany | 34,142 | 35.1% | 33,333 | 37.1% | 2.4% |
| Other EU countries | 34,427 | 35.4% | 32,503 | 36.2% | 5.9% |
| U.S.A. | 7,334 | 7.5% | 6,6621 | 7.4% | 10.1% |
| Asia/Pacifi c | 14,816 | 15.2% | 11,037 | 12.3% | 34.2% |
| Others | 6,618 | 6.8% | 6,2451 | 7.0% | 6.0% |
| Group sales | 97,337 | 100.0% | 89,780 | 100.0% | 8.4% |
1 Prior-year amounts have been adjusted.
The gross profi t grew by 12.9% to 43.1 million Euro in the reporting period (HY1 2010: 38.2 Mio. Euro). This equals a gross margin of 44.3% for the 1st half-year 2011 (HY1 2010: 42.5%). The disproportionate increase in earnings in relation to sales is due essentially to the higher capacity utilization. In this respect it must be taken into consideration that these results have been achieved in spite of several effects with a negative impact on earnings, such as price reductions offered to customers at the beginning of the year 2011, cost increases due to higher global market prices for materials, and the impact on manufacturing effi ciency due to the conversion from 6-inch to 8-inch production at high capacity utilization rates.
Research and development expenses went up – as scheduled – from 14.8 million Euro in the fi rst half-year 2010 to 16.5 million Euro in the period under review. The main reason are new employees in the design department hired for addressing new applications in the future. The ratio of R&D expenses rose from 16.5% to 17.0% of sales. The increase in distribution expenses from 6.1 million Euro to 7.3 million Euro, or from 6.8% to 7.5% of sales, is also accounted for by additional staff in the sales department, particularly in support of the expansion of the company's presence in Asia. General administrative expenses were on the decline, coming to 8.4 million Euro or 8.6% of sales in the fi rst half-year 2011 (HY1 2010: 9.1 million Euro or 10.2% of sales). The improvement of the gross profi t and the slightly declining functional costs in relative terms result in an increase of the operating income from 8.1 million Euro in the fi rst half-year 2010 to 10.9 million Euro in the reporting period.
The EBIT (earnings before interest and taxes) climbed 48.1% to 12.2 million Euro (HY1 2010: 8.2 million Euro). The EBIT margin also went up despite increased efforts in development and distribution (HY1 2011: 12.5% compared to HY1 2010: 9.1%).
The net income attributable to equity holders of the parent went up 61.3% from 5.3 million Euro in the fi rst half-year 2010 to 8.5 million Euro, corresponding to basic earnings per share of 0.44 Euro (HY1 2010: 0.27 Euro).
The operating cash fl ow of the fi rst half-year 2011 came to 14.9 million Euro (HY1 2010: 17.7 million Euro). The difference from the prior-year amount is accounted for primarily by the lower increase in trade payables compared to HY1 2010 (+0.8 million in HY1 2011 vs. +7.1 million Euro in HY1 2010) and the outfl ow of funds for the acquisition of marketable securities in the amount of 2.5 million Euro. Capital expenditures amounted to 11.3 million Euro in the fi rst half-year 2011, equivalent to 11.6% of sales (HY1 2010: 7.7 million Euro or 8.6%). Adjusted for marketable securities, the adjusted free cash fl ow (cash fl ow from operating activities plus payments for marketable securities less capital expenditures) comes to 6.1 million Euro (HY1 2010: 10.0 million Euro).
Resulting primarily from the acquisition of securities (6.0 million Euro) and the dividend payout (3.9 million Euro), cash and cash equivalents without consideration of acquired securities went down from 58.0 million Euro as of December 31, 2010 to 55.6 million Euro as of June 30, 2011. Contrary to that, net cash continued to increase compared to December 31, 2010 (26.8 million Euro) to 30.2 million Euro. At 68.9% the equity ratio was virtually unchanged from the end of the year 2010 (December 31, 2010: 69.1%).
While the macroeconomic scenario is determined by crises, worldwide demand for new vehicles has continued its positive trend over the fi rst half-year 2011. However, signifi cant differences are noticeable in the regions.
The market for new car registrations in the EU was on a slight decline in the fi rst half-year 2011. 7.1 million passenger cars were newly registered altogether; this equals a 2.1% decrease compared to the prior-year period. The development in the major EU markets is very different, though, according to the European auto manufacturers' association ACEA. Registrations in Germany soared in comparison with the prior-year period (+10.5% to 1.6 million cars) while other markets collapsed: New registrations dropped −7.1% to 1.0 million cars in Great Britain, −13.1% to 1.0 million cars in Italy, and −26.8% to 0.4 million vehicles in Spain. With a 1.0% gain, the situation in France has hardly changed (1.2 million cars).
The international car market showed a positive development, according to the German Association of the Automotive Industry (VDA), with the exception of Japan. Car sales fi gures in the U.S.A. climbed 12.7% to 6.3 million units in the fi rst half-year 2011. A similar trend is reported for the Chinese market. However, the 9.7% gain to 5.9 million passenger cars indicates a slight slowdown of the previous high growth rates. Russia continued its very fast growth, achieving an increase in new registrations of 55.7% over the prior-year period to 1.2 million vehicles. Only in Japan new registration fi gures are on a strong decline – due to the natural disaster –, with a 29.0% drop to 1.6 million passenger cars.
Dr. Anton Mindl, CEO, and Nicolaus Graf von Luckner, CFO, explained the annual result 2010 to the respective audiences at the annual press conference and the analysts' conference on March 17, 2011. The Management Board also presented a forecast for the current fi scal year 2011.
ELMOS held its twelfth Annual General Meeting on May 17, 2011. The shareholders in attendance made use of their voting rights and resolved all items on the agenda with a vast majority of votes. This included the payment of a dividend in the amount of 0.20 Euro per share. The General Meeting also decided on the expansion of the Supervisory Board from three to six members (please refer to "Company boards"). Furthermore, in addition to the usual agenda items, the Management Board was authorized to create a new Authorized Capital on account of the expiration of the previous authorization.
ELMOS has also introduced new standard products, e.g. the world's fi rst series-produced active FlexRay™star coupler according to the current FlexRay™ standard or the world's fi rst dual IO-Link master transceiver. In addition, a set of chips for the implementation of an automatic start/stop function has been presented as well as a semiconductor for controlling up to three unipolar stepper motors.
In July 2011 ELMOS announced that its South Korean partner foundry MagnaChip Semiconductor had started its production and delivered automotive-qualifi ed 0.35μm 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 coinvestor in TetraSun Inc. (California/U.S.A.). The start-up TetraSun develops a new kind of monocrystalline silicon solar cells. With its investment of a high single-digit million USD amount, ELMOS acquires a minority interest in TetraSun and will be represented with one seat on TetraSun's Board of Directors.
In July 2011 ELMOS concluded an agreement with Taiwan's WT Microelectronics; the company will act as global distributor for ELMOS with an emphasis on the Asian markets, particularly China and Taiwan. ELMOS is already present in Asia with its own branches in Seoul, Singapore, and Shanghai. Growth in Asia's markets is a strategic goal for ELMOS. The expansion of the distribution channels is one crucial step towards this goal.
The staff of the ELMOS Group came to 976 employees as of June 30, 2011. The number of employees is down slightly (−1.5%) 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 strengthening of research and development and increased sales activity.
Staff development ELMOS Group
The ELMOS share performed very positively over the fi rst half-year 2011 altogether and gained 11.1%. However, in the second quarter of 2011 it lost part of its drive of the previous quarter (Q1 2011: 21.1% vs. Q2 2011: −8.3%). The ELMOS share reached its 6-month high at the beginning of the second quarter 2011 just below the 12 euro mark (April 6, 2011 at 11.98 Euro); its low in the fi rst six months of 2011 was 9.25 Euro hit on March 15, 2011. The ELMOS share closed on June 30, 2011 at 10.45 Euro (XETRA closing prices all). Market capitalization came to 202.9 million Euro (based on 19.4 million shares outstanding). The daily trading volume (XETRA and Frankfurt fl oor) stabilized at an average 51.7 thousand shares over the fi rst half-year 2011, signifi cantly above the average amount of the year 2010 (42.3 thousand shares). Thus the ELMOS share showed a better performance than the indices of relevance and most competitors did. DAX, TecDax, and Technology All Share gained 6.7%, 5.1%, and 3.1% respectively over the fi rst half-year 2011.
ELMOS Semiconductor AG holds 105,931 own shares (treasury stock) as of June 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.
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, employee representative Graduate engineer | Dortmund
Sven-Olaf Schellenberg, employee representative Graduate physicist | Dortmund
Dr. Klaus G. Weyer Graduate physicist | Schwerte
Management Board Dr. Anton Mindl, chairman Graduate physicist | Lüdenscheid
Nicolaus Graf von Luckner Graduate economist | Oberursel
Reinhard Senf Graduate engineer | Iserlohn
Jürgen Höllisch Engineer | Purbach, Austria
Risk management and individual corporate risks and opportunities are described in our Annual Report 2010. Over the fi rst six months 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 or the budget crisis in the United States. The natural disaster in Japan has not had any material effects to date.
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 is confi rmed. Based on a stable economy, ELMOS continues to expect sales between 190 and 200 million Euro for 2011 in spite of a recent slowdown in the dynamics of customers' order behavior. The EBIT margin of 2011 will reach or slightly exceed the 2010 level (12.5%). The forecast takes into consideration cost increases due to higher global market prices for materials and rising development expenses and distribution expenses within the scope of the expansion of product lines and broader market coverage in Asia. 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.
ELMOS will benefi t from global megatrends in the medium and long term. Mobility 2020 and beyond will on the one hand result in more individual solutions and on the other hand create more standardized approaches. At the same time, society will face new challenges due to the demographic change and population growth in some nations. The expansion of infrastructure, logistic pathways, and power generation and supply will also only be made possible by the use of semiconductors and sensors in electronic systems. EL-MOS will sustainably benefi t from a continued electrifi cation of vehicles and of daily life in general.
| Assets | 6/30/2011 thousand Euro |
12/31/2010 thousand Euro |
|---|---|---|
| Non-current assets | ||
| Intangible assets* | 30,087 | 30,589 |
| Property, plant and equipment* | 71,671 | 69,494 |
| Investments accounted for at equity | 0 | 0 |
| Securities* | 9,764 | 6,272 |
| Investments* | 816 | 911 |
| Other fi nancial assets* | 2,022 | 2,090 |
| Deferred tax assets | 4,233 | 5,015 |
| Total non-current assets | 118,593 | 114,371 |
| Current assets | ||
| Inventories* | 36,398 | 35,826 |
| Trade receivables | 27,209 | 25,328 |
| Securities | 5,503 | 3,033 |
| Other fi nancial assets | 4,689 | 5,253 |
| Other receivables | 4,732 | 3,148 |
| Income tax assets | 2,968 | 2,926 |
| Cash and cash equivalents | 55,631 | 58,010 |
| 137,130 | 133,524 | |
| Assets classifi ed as held for sale | 668 | 1,291 |
| Total current assets | 137,798 | 134,815 |
| Total assets | 256,391 | 249,186 |
* Cf. note 3
| Equity and liabilities | 6/30/2011 thousand Euro |
12/31/2010 thousand Euro |
|---|---|---|
| Equity | ||
| Equity attributable to equity holders of the parent | ||
| Share capital* | 19,414 | 19,414 |
| Treasury stock* | – 106 | – 119 |
| Additional paid-in capital | 88,343 | 88,486 |
| Surplus reserve | 102 | 102 |
| Other equity components | –2,633 | – 1,740 |
| Retained earnings | 70,906 | 66,380 |
| 176,026 | 172,523 | |
| Non-controlling interests | 533 | –227 |
| Total equity | 176,559 | 172,296 |
| Liabilities | ||
| Non-current liabilities | ||
| Provisions | 295 | 376 |
| Financial liabilities | 40,398 | 40,101 |
| Other liabilities | 1,712 | 1,781 |
| Deferred tax liabilities | 2,623 | 1,316 |
| Total non-current liabilities | 45,028 | 43,574 |
| Current liabilities | ||
| Provisions | 8,604 | 9,568 |
| Income tax liabilities | 3,364 | 2,627 |
| Financial liabilities | 283 | 374 |
| Trade payables | 19,611 | 18,792 |
| Other liabilities | 2,942 | 1,955 |
| Total current liabilities | 34,804 | 33,316 |
| Total liabilities | 79,832 | 76,890 |
| Total equity and liabilities | 256,391 | 249,186 |
* Cf. note 3
| 2nd quarter | 4/1 – 6/30/2011 |
in percent of sales |
4/1 – 6/30/2010 |
in percent of sales |
Change |
|---|---|---|---|---|---|
| Sales | 49,228 | 100.0% | 46,424 | 100.0% | 6.0% |
| Cost of sales | 26,911 | 54.7% | 26,288 | 56.6% | 2.4% |
| Gross profi t | 22,317 | 45.3% | 20,137 | 43.4% | 10.8% |
| Research and development expenses | 8,389 | 17.0% | 7,737 | 16.7% | 8.4% |
| Distribution expenses | 3,758 | 7.6% | 3,054 | 6.6% | 23.1% |
| Administrative expenses | 4,290 | 8.7% | 4,962 | 10.7% | –13.5% |
| Operating income before other operating expenses/(income) | 5,880 | 11.9% | 4,384 | 9.4% | 34.1% |
| Finance income | – 442 | –0.9% | –230 | –0.5% | 92.6% |
| Finance expenses | 607 | 1.2% | 637 | 1.4% | –4.8% |
| Foreign exchange losses | 27 | 0.1% | 107 | 0.2% | –74.9% |
| Other operating income | – 1,115 | – 2.3% | –930 | –2.0% | 19.8% |
| Other operating expenses | 633 | 1.3% | 465 | 1.0% | 36.1% |
| Earnings before taxes | 6,170 | 12.5% | 4,335 | 9.3% | 42.3% |
| Income taxes | |||||
| Current income tax expense | 507 | 1.0% | 225 | 0.5% | >100.0% |
| Deferred taxes | 1,150 | 2.3% | 1,470 | 3.2% | –21.8% |
| 1,657 | 3.4% | 1,695 | 3.7% | –2.3% | |
| Net income | 4,513 | 9.2% | 2,640 | 5.7% | 70.9% |
| Other comprehensive income | |||||
| Foreign currency adjustments without deferred tax effect | – 2 | 287 | |||
| Foreign currency adjustments with deferred tax effect | – 212 | 1,531 | |||
| Deferred taxes (on foreign currency | |||||
| adjustments with deferred tax effect) | 60 | –390 | |||
| Value differences with respect to hedges | – 232 | 0 | |||
| Deferred taxes (on value differences with respect to hedges) | 75 | 0 | |||
| Available-for-sale fi nancial assets | – 24 | 0 | |||
| Deferred taxes (on available-for-sale fi nancial assets) | 8 | 0 | |||
| Other comprehensive income after taxes | – 327 | 1,428 | |||
| Total comprehensive income after taxes | 4,186 | 4,068 | |||
| Net income attributable to: | |||||
| Equity holders of the parent | 4,416 | 9.0% | 2,633 | 5.7% | 67.7% |
| Non-controlling interests | 97 | 0.2% | 7 | 0.0% | >100.0% |
| 4,513 | 9.2% | 2,640 | 5.7% | 70.9% | |
| Total comprehensive income attributable to: | |||||
| Equity holders of the parent | 4,089 | 4,061 | |||
| Non-controlling interests | 97 | 7 | |||
| 4,186 | 4,068 | ||||
| Earnings per share (with respect to net income) | |||||
| Basic earnings per share (in Euro) | 0.23 | 0.14 | |||
| Fully diluted earnings per share (in Euro) | 0.22 | 0.13 | |||
| Earnings before interest and taxes (EBIT) | 4/1 – 6/30/2011 |
in percent of sales |
4/1 – 6/30/2010 |
in percent of sales |
Change |
| Operating income before other operating expenses/(income) | 5,880 | 11.9% | 4,384 | 9.4% | 34.1% |
| Foreign exchange losses | 27 | 0.1% | 107 | 0.2% | –74.9% |
| Other operating expenses/(income) | – 482 | – 1.0% | – 465 | –1.0% | 3.5% |
| EBIT | 6,334 | 12.9% | 4,742 | 10.2% | 33.6% |
| 1st half-year | 1/1 – 6/30/2011 |
in percent of sales |
1/1 – 6/30/2010 |
in percent of sales |
Change |
|---|---|---|---|---|---|
| Sales | 97,337 | 100.0% | 89,780 | 100.0% | 8.4% |
| Cost of sales | 54,206 | 55.7% | 51,580 | 57.5% | 5.1% |
| Gross profi t | 43,131 | 44.3% | 38,200 | 42.5% | 12.9% |
| Research and development expenses | 16,547 | 17.0% | 14,799 | 16.5% | 11.8% |
| Distribution expenses | 7,297 | 7.5% | 6,137 | 6.8% | 18.9% |
| Administrative expenses | 8,394 | 8.6% | 9,123 | 10.2% | –8.0% |
| Operating income before other operating expenses/(income) | 10,893 | 11.2% | 8,140 | 9.1% | 33.8% |
| Finance income | –782 | –0.8% | –425 | –0.5% | 84.2% |
| Finance expenses | 1,207 | 1.2% | 1,209 | 1.3% | –0.1% |
| Foreign exchange (gains)/losses | – 97 | – 0.1% | 106 | 0.1% | n/a |
| Other operating income | –2,272 | – 2.3% | – 1,436 | –1.6% | 58.2% |
| Other operating expenses | 1,098 | 1.1% | 1,257 | 1.4% | –12.6% |
| Earnings before taxes | 11,739 | 12.1% | 7,431 | 8.3% | 58.0% |
| Income taxes | |||||
| Current income tax expense | 1,261 | 1.3% | 159 | 0.2% | >100.0% |
| Deferred taxes | 1,836 | 1.9% | 1,999 | 2.2% | –8.2% |
| 3,097 | 3.2% | 2,159 | 2.4% | 43.5% | |
| Net income | 8,642 | 8.9% | 5,272 | 5.9% | 63.9% |
| Other comprehensive income | |||||
| Foreign currency adjustments without deferred tax effect | 9 | 464 | |||
| Foreign currency adjustments with deferred tax effect | –1,125 | 2,490 | |||
| Deferred taxes (on foreign currency adjustments with deferred tax effect) |
285 | –635 | |||
| Value differences with respect to hedges | –68 | 0 | |||
| Deferred taxes (on value differences with respect to hedges) | 22 | 0 | |||
| Available-for-sale fi nancial assets | –24 | 0 | |||
| 0 | |||||
| Deferred taxes (on available-for-sale fi nancial assets) | 8 | ||||
| Other comprehensive income after taxes | – 893 | 2,319 | |||
| Total comprehensive income after taxes | 7,749 | 7,591 | |||
| Net income attributable to: | |||||
| Equity holders of the parent | 8,482 | 8.7% | 5,259 | 5.9% | 61.3% |
| Non-controlling interests | 160 | 0.2% | 13 | 0.0% | >100.0% |
| 8,642 | 8.9% | 5,272 | 5.9% | 63.9% | |
| Total comprehensive income attributable to: | |||||
| Equity holders of the parent | 7,589 | 7,578 | |||
| Non-controlling interests | 160 | 13 | |||
| Earnings per share (with respect to net income) | 7,749 | 7,591 | |||
| Basic earnings per share (in Euro) | 0.44 | 0.27 | |||
| Fully diluted earnings per share (in Euro) | 0.43 | 0.27 | |||
| Earnings before interest and taxes (EBIT) | 1/1 – 6/30/2011 |
in percent of sales |
1/1 – 6/30/2010 |
in percent of sales |
Change |
| Operating income before other operating expenses/(income) | 10,893 | 11.2% | 8,140 | 9.1% | 33.8% |
| Foreign exchange (gains)/losses | –97 | –0.1% | 106 | 0.1% | n/a |
| Other operating expenses/(income) | –1,174 | –1.2% | –180 | –0.2% | >100.0 |
| EBIT | 12,164 | 12.5% | 8,215 | 9.1% | 48.1% |
| January 1, 2010 (after corrections | 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 |
|---|---|---|---|---|---|---|
| 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 | 67 | |||||
| Acquisition of own shares | – 72 | – 430 | ||||
| June 30, 2010 | 19,414 | 19,414 | –72 | 88,638 | 102 | 0 |
| January 1, 2011 | 19,414 | 19,414 | –119 | 88,486 | 102 | 0 |
| Net income | ||||||
| Other comprehensive income for the period |
– 16 | |||||
| Total comprehensive income | – 16 | |||||
| Share-based remuneration | 13 | 88 | ||||
| Changes in basis of consolidation | ||||||
| Dividend payout | ||||||
| Stock option expense | 142 | |||||
| Acquisition of shares held by other shareholders |
– 610 | |||||
| Newly created shares held by other shareholders |
103 | |||||
| Other changes | 134 | |||||
| June 30, 2011 |
| Non controlling |
|||||
|---|---|---|---|---|---|
| Equity attributable to equity holders of the parent | interests | Group | |||
| Other equity components Hedges thousand Euro |
Other equity components Foreign currency translations thousand Euro |
Retained earnings thousand Euro |
Total thousand Euro |
Total thousand Euro |
Total thousand Euro |
| 0 | –2,489 | 48,626 | 154,654 | –242 | 154,412 |
| 5,259 | 5,259 | 13 | 5,272 | ||
| 2,319 | 2,319 | 2,319 | |||
| 2,319 | 5,259 | 7,578 | 13 | 7,591 | |
| 67 | 67 | ||||
| – 502 | – 502 | ||||
| 0 | –170 | 53,885 | 161,797 | –229 | 161,568 |
| 61 | –1,801 | 66,380 | 172,523 | –227 | 172,296 |
| 8,482 | 8,482 | 160 | 8,642 | ||
| – 46 | –831 | – 893 | – 893 | ||
| – 46 | –831 | 8,482 | 7,589 | 160 | 7,749 |
| 101 | 101 | ||||
| –80 | –80 | –80 | |||
| – 3,876 | – 3,876 | – 3,876 | |||
| 142 | 142 | ||||
| – 610 | 610 | 0 | |||
| 103 | 103 | ||||
| 134 | – 10 | 124 | |||
| 15 | –2,632 | 70,906 | 176,026 | 533 | 176,559 |
| 1/1 – 6/30/2011 thousand Euro |
1/1 – 6/30/2010 thousand Euro |
4/1 – 6/30/2011 thousand Euro |
4/1 – 6/30/2010 thousand Euro |
|
|---|---|---|---|---|
| Cash fl ow from operating activities | ||||
| Net income | 8,642 | 5,272 | 4,513 | 2,640 |
| Depreciation and amortization | 8,710 | 7,884 | 4,230 | 3,930 |
| Write-down of investments | 34 | 0 | 0 | 0 |
| Financial result | 425 | 784 | 164 | 408 |
| Other non-cash expenses/income | 1,836 | 1,999 | 1,188 | 1,470 |
| Current income tax expense | 1,261 | 159 | 507 | 225 |
| Expenses for stock option plans and stock award plan | 141 | 67 | 70 | 39 |
| Changes in pension provisions | –81 | –96 | –26 | –83 |
| Changes in net working capital: | ||||
| Trade receivables | –1,881 | –4,919 | –736 | –2,772 |
| Inventories | –572 | –1,878 | –735 | –1,395 |
| Securities | –2,486 | 0 | 1,017 | 0 |
| Other assets | –998 | –721 | –971 | –359 |
| Trade payables | 818 | 7,098 | –325 | 2,621 |
| Other provisions and other liabilities | 24 | 2,242 | –1,607 | 684 |
| Income tax refunds/payments | –566 | 611 | –181 | 400 |
| Interest paid | –1,207 | –1,209 | –606 | –637 |
| Interest received | 782 | 425 | 442 | 230 |
| Cash fl ow from operating activities | 14,882 | 17,719 | 6,944 | 7,400 |
| Cash fl ow from investing activities | ||||
| Capital expenditure for intangible assets | –1,600 | –1,366 | –695 | –606 |
| Capital expenditure for property, plant and equipment | –9,669 | –6,328 | –5,267 | –4,979 |
| Payments for acquisitions less acquired cash and cash equivalents | –558 | 0 | 0 | 0 |
| Payments for/Disposal of non-current assets held for sale | 619 | –681 | –357 | –362 |
| Disposal of property, plant and equipment | 1,093 | 1,055 | 673 | 549 |
| Payments for securities | –3,491 | –3,006 | 33 | –3,006 |
| Payments for investments | 0 | –407 | 0 | –407 |
| Disposal of investments | 33 | 0 | 0 | 0 |
| Cash fl ow from investing activities | –13,572 | –10,733 | –5,612 | –8,812 |
| Cash fl ow from fi nancing activities | ||||
| Repayment/Borrowing of non-current liabilities | 375 | –201 | 177 | –108 |
| Repayment/Borrowing of current liabilities to banks | –239 | –281 | –2,908 | –7 |
| Issue of own shares | 102 | 0 | 102 | 0 |
| Acquisition of own shares | 0 | –502 | 0 | –502 |
| Newly created shares held by other shareholders | 103 | 0 | 103 | 0 |
| Dividend payout | –3,876 | 0 | –3,876 | 0 |
| Other changes | 69 | 0 | 69 | 0 |
| Cash fl ow from fi nancing activities | –3,466 | –984 | –6,333 | –616 |
| Increase/Decrease in cash and cash equivalents | –2,156 | 6,002 | –5,001 | –2,027 |
| Effect of exchange rate changes on cash and cash equivalents | –223 | 264 | –105 | 152 |
| Cash and cash equivalents at beginning of reporting period | 58,010 | 46,841 | 60,737 | 54,984 |
| Cash and cash equivalents at end of reporting period | 55,631 | 53,108 | 55,631 | 53,108 |
The condensed interim consolidated fi nancial statements for the 1st half-year 2011 were released for publication in August 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, 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, the U.S., and Asia 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 June 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 -> to IFRS 1 |
Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters |
|---|---|
| -> Amendment -> to IAS 24 |
Related Party Disclosures |
| -> Amendment -> to IAS 32 |
Classification of Rights Issues |
| -> Amendment -> to IFRIC 14 |
Prepayments of a Minimum Funding 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 fi rst half-year 2011.
Two lawsuits pending as of December 31, 2010 have been settled in the meantime. The amounts payable under the settlement agreements were covered by corresponding provisions made as of the end of the year 2010.
The basis of consolidation of the ELMOS Group was expanded by three companies in the fi rst half-year 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 was included in these 6-month fi nancial statements for the fi rst time by way of full consolidation. The third company is a subsidiary founded in March 2011 in Singapore. These changes in the basis of consolidation have altogether no material effects on the group's asset situation, fi nances and profi t situation.
The macroeconomic situation continues to be determined by local and global crises such as the economic crisis in some euro countries or the budget crisis in the United States. As of today the catastrophe in Japan has had no noteworthy effects. 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, the U.S.A., and Asia. 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. 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 June 30, 2011 and 2010, respectively) as well as on assets of the group's business segments (as of June 30, 2011 and December 31, 2010).
| 1st half-year as of 6/30/2011 | Semiconductor thousand Euro |
Micromechanics thousand Euro |
Consolidation thousand Euro |
Total thousand Euro |
|---|---|---|---|---|
| Sales | ||||
| Third-party sales | 88,992 | 8,345 | 0 | 97,337 |
| Inter-segment sales | 118 | 343 | – 4611 | 0 |
| Total sales | 89,110 | 8,688 | −461 | 97,337 |
| Earnings | ||||
| Segment earnings | 10,987 | 1,177 | 0 | 12,164 |
| Finance income | – 782 | |||
| Finance expenses | 1,207 | |||
| Earnings before taxes | 11,739 | |||
| Income taxes | 3,097 | |||
| Net income including non-controlling interests | 8,642 | |||
| Assets | ||||
| Segment assets | 180,213 | 12,530 | 62,8322 | 255,575 |
| Investments | 469 | 347 | 0 | 816 |
| Total assets | 256,391 | |||
| Other segment information | ||||
| Capital expenditures | 11,101 | 168 | 11,269 | |
| Depreciation and amortization | 8,069 | 641 | 8,710 |
Sales from inter-segment transactions are eliminated for consolidation purposes.
Non-attributable assets as of June 30, 2011 include cash and cash equivalents (55,631 thousand Euro), income tax assets (2,968 thousand Euro), and deferred taxes (4,233 thousand Euro),
as these assets are controlled on group level.
| Semiconductor | Micromechanics | Consolidation | Total | |
|---|---|---|---|---|
| 1st half-year as of 6/30/2010 | thousand Euro | thousand Euro | thousand Euro | thousand Euro |
| Sales | ||||
| Third-party sales | 82,332 | 7,448 | 0 | 89,780 |
| Inter-segment sales | 151 | 49 | – 2003 | 0 |
| Total sales | 82,483 | 7,497 | –200 | 89,780 |
| Earnings | ||||
| Segment earnings | 7,611 | 604 | 0 | 8,215 |
| Finance income | –425 | |||
| Finance expenses | 1,209 | |||
| Earnings before taxes | 7,431 | |||
| Income taxes | 2,159 | |||
| Net income including non-controlling interests | 5,272 | |||
| 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 |
Half-year as of 6/30/2011 thousand Euro |
Half-year as of 6/30/2010 thousand Euro |
|---|---|---|
| Germany | 34,142 | 33,333 |
| EU | 34,427 | 32,503 |
| U.S.A. | 7,334 | 6,6621 |
| Asia/Pacifi c | 14,816 | 11,037 |
| Others | 6,618 | 6,2451 |
| 97,337 | 89,780 |
| Geographical distribution of non-current assets |
6/30/2011 thousand Euro |
12/31/2010 thousand Euro |
|---|---|---|
| Germany | 101,570 | 95,758 |
| EU | 8,799 | 8,767 |
| U.S.A. | 3,985 | 4,829 |
| Others | 6 | 2 |
| 114,360 | 109,356 |
Prior-year amount has been adjusted
| Development of selected non-current assets from January 1 to June 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 6/30/2011 thousand Euro |
|---|---|---|---|---|---|---|
| Intangible assets | 30,589 | 534 | 1,600 | –108 | 2,528 | 30,087 |
| Property, plant and equipment | 69,494 | 0 | 9,669 | –1,311 | 6,181 | 71,671 |
| Securities | 6,272 | 0 | 3,491 | 0 | 0 | 9,764 |
| Investments | 911 | 0 | 0 | –61 | 34 | 816 |
| Other fi nancial assets | 2,090 | 0 | 0 | –68 | 0 | 2,022 |
| 109,356 | 534 | 14,760 | −1,548 | 8,742 | 114,360 |
Additions to securities relate to investments in bonds with maturities of more than 12 months in the amount of 3,491 thousand Euro. The position of disposals/other movements includes negative currency adjustments in the amount of 324 thousand Euro.
| 6/30/2011 thousand Euro |
12/31/2010 thousand Euro |
|
|---|---|---|
| Raw materials | 7,443 | 6,709 |
| Work in process | 22,145 | 20,929 |
| Finished goods | 6,810 | 8,188 |
| 36,398 | 35,826 |
As of June 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 3,876 thousand Euro.
As of June 30, 2011 altogether 705,423 options from stock option plans are outstanding. The options are attributable to the tranches as follows:
| 2009 | 2010 | Total | |
|---|---|---|---|
| Year of resolution and issue | 2009 | 2010 | |
| Exercise price (Euro) | 3.68 | 7.49 | |
| Blocking period ex issue (years) | 3 | 4 | |
| Exercise period after blocking period (years) | 3 | 3 | |
| Options outstanding as of 12/31/2010 (number) | 465,950 | 244,415 | 710,365 |
| Exercised 1/1 – 6/30/2011 (number) | 0 | 0 | 0 |
| Forfeited 1/1 – 6/30/2011 (number) | 3,550 | 1,392 | 4,942 |
| Options outstanding as of 6/30/2011 (number) | 462,400 | 243,023 | 705,423 |
| Options exercisable as of 6/30/2011 (number) | 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 June 30, 2011.
| Date/place | Name | Function | Transaction | Number | Price/Basic price (Euro) |
Total volume (Euro) |
|---|---|---|---|---|---|---|
| 6/24/2011 | ZOE Beteiligungs | Legal entity closely related to the chairman | Purchase of | 10,000 | 9.911 | 99,110 |
| Xetra | GmbH | of the Supervisory Board | ELMOS shares |
In July 2011 ELMOS Semiconductor AG increased its minority interest in Californian TetraSun Inc. through the U.S. subsidiary Silicon Microstructures Inc., Milpitas/U.S.A., by the investment of a high single-digit million USD amount. Tetra-Sun develops a new kind of monocrystalline silicon solar cells reaching high effi ciency at low production costs. Due to the percentage of the interest there will be no effects on the basis of consolidation.
To the best of our knowledge, and in accordance with the applicable reporting principles forinterim 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 2011
Dr. Anton Mindl Nicolaus Graf von Luckner Reinhard Senf Jürgen Höllisch
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, 2011 that are required components of a half-year fi nancial report pursuant to Section 37w WpHG (German 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 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.
Dortmund, August 9, 2011
Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft
Muzzu Schlüter
Wirtschaftsprüfer Wirtschaftsprüfer
Phone + 49 (0) 231 - 75 49 - 287 Fax + 49 (0) 231 - 75 49 - 548 [email protected]
This interim report was released on August 9, 2011 in German and English. Both versions are available for download on the Internet at www.elmos.de.
We are happy to send you additional informative material free of charge on your request.
| 6-month results Q2/2011 (after trading hours) |
August 9, 2011 |
|---|---|
| 9-month results Q3/2011 (after trading hours) |
November 3, 2011 |
| Analysts' conference at the Equity Forum in Frankfurt |
November 23, 2011 |
Results are usually released after trading hours. Conference calls are usually conducted the day after the quarterly results are released.
This English version is for convenience purposes only.
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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