Melexis N.V. — Earnings Release 2013

Feb 5, 2014

Press release :

Melexis Q4 and FY 2013 results – Melexis celebrates its 25th anniversary with FY 2013 double digit sales growth

Intermediate declaration by the Board of Directors. Ieper, Belgium – February 5th, 2014, 07.00 hrs CET

The statutory auditor BDO Bedrijfsrevisoren Burg. Ven. CVBA, has confirmed that his audit procedures, which have been substantially completed, have not revealed material adjustments which would have to be made to the accounting information included in this press release.

For the year 2013, sales were 275.4 million EUR, an increase of 11% compared to the previous year. The EUR/USD exchange rate evolution had a negative impact of 2% compared to 2012.

Gross margin was 127.5 million EUR, an increase of 10% compared to 2012.

R&D expenses were 15.0% of sales, G&A was at 5.4% of sales and Selling was at 2.7% of sales. The operating result was 63.7 million EUR, an increase of 14% compared to last year.

Net income was 55.2 million EUR, compared to 51.5 million EUR in 2012, an increase of 7%. Net income per share was 1.37 EUR, up from 1.25 EUR in 2012, an increase of 9%.

Sales for the 4th quarter of 2013 were 75.1 million EUR, an increase of 21% compared to the same quarter of the previous year and an increase of 5% compared to the previous quarter.

The EUR/USD exchange rate evolution had a negative impact of 3% compared to the same quarter of last year and a negative impact of 1% compared to the previous quarter.

Gross margin was 34.9 million EUR, an increase of 20% compared to the same quarter of last year.

R&D expenses were 14.2% of sales, G&A was at 5.4% of sales and Selling was at 2.8% of sales. The operating result was 18.1 million EUR, an increase of 32% compared to the same quarter of the previous year.

Net income was 15.8 million EUR, 0.39 EUR per share, compared to 16.5 million EUR in the same quarter of last year.

Outlook

Melexis expects sales in the first quarter of 2014 to be around the same level as the previous quarter. For FY 2014, Melexis expects to reach 300 million EUR in sales, a gross profit margin above 45% and an operating margin close to 23%, all taking into account a EUR/USD exchange rate of 1.35.

Françoise Chombar, CEO of Melexis comments:

"Melexis perseveres in gaining market share slowly but surely. Over the past year, new product launches have continued at the expected pace, on the one hand strengthening our core in magnetic sensors and LIN and equally adding some new avenues in optical sensing. All of these newly launched products are engineered to contribute in one or the other way to reducing the environmental footprint of our customers and our customers' customers. Melexis constantly innovates for people, planet and profit."

The Sustainable Future

Melexis Financial Press Release Regulated Information

1

Financial Calendar

• Annual Shareholders Meeting: April 22, 2014
• Publication Q1 2014 Results: April 23, 2014
• Publication Q2/HY1 2014 Results: July 30, 2014
• Publication Q3 2014 Results: October 22, 2014
• Publication FY 2014 Results: February 4, 2015

The company's results will be discussed in a conference call on Wednesday, February 5th, 2014 at 17 hrs CET. The conference call will be in English. You have to register for this conference call in advance. You can register by clicking on the following link and filling out the requested information: https://eventreg1.conferencing.com/webportal3/reg.html?Acc=184341&Conf=189636 Conference ID: 941066.

After registration, you will receive the conference call number, a participant user pin, conference pin and instructions on how to join the conference call. For security purposes all participants must register individually if they wish to join the call.

A replay number for this call is available for 7 days after the end of the conference call. The replay number for this call is +32 2 290 17 05, access code: 941066.

For further information: Investor Relations Phone: +32 13 67 07 79 Fax: +32 13 67 21 34 Email: investor@melexis.com

About Melexis

Melexis NV (Euronext Brussels: MELE) is a mixed signal semiconductor manufacturer. Melexis designs, develops, tests and markets advanced integrated semiconductor devices for the automotive industry. Our core experience supplying ICs for automotive electronics sustains the expansion into Application Specific Standard Products for industrial and consumer product applications. Melexis enthusiastically pursues its role as a component supplier whose innovations, while physically small, are the essential element in nearly every one of our customers' extraordinary systems. At Melexis we believe that "Small things make a big difference". Melexis' products include sensor, communication, actuator ICs and Application Specific Integrated Circuits (ASICs). Further information about Melexis can be found at http://www.melexis.com.

Disclaimer

Except for those statements that report the Company's historical results, the statements being made are forward looking statements. Actual results could differ materially from those projected in the forwardlooking statements. Factors which could cause actual results to differ from expectations include the following: volatility in supply and demand affecting revenues and market prices, price and availability of silicon foundry, assembly and test prices, assembly and test subcontract capacity required to meet financial targets and/or meet backlog requirements, risks and delays associated with bringing up new production capabilities or with deliveries from subcontractors, timing and market acceptance of new products, increased expenses associated with new product acceptance of new products, increased expenses associated with new product introductions of process changes, delays in developing or achieving volume production of new products, which can result in delays or failure to contribute to revenues and profits, ability of the Company to maintain its customer and vendor base and delays in and/or inability in raising additional capital.

Melexis Financial Press Release Regulated Information

Consolidated Income Statement

CONFORM IFRS	Quarter ended 31/12/2013	Quarter ended 31/12/2012	Year ended 31/12/2013	Year ended 31/12/2012
in k EUR			audited	audited
Sales	75,122	62,097	275,352	247,041
Cost of sales	-40,185	-33,093	-147,823	-131,565
Gross Margin	34,937	29,004	127,529	115,476
R&D	-10,653	-10,118	-41,373	-38,869
G&A	-4,087	-3,226	-14,925	-13,149
Selling	-2,112	-1,952	-7,518	-7,602
Other operating result
Operating result	18,086	13,709	63,713	55,856
Other expenses (net)	522	-9	-495	-925
Income before taxes	18,607	13,700	63,218	54,931
Income taxes	-2,761	2,774	-8,005	-3,402
Net income	15,846	16,474	55,214	51,529
Net income per share in EUR	0.39	0.41	1.37	1.25

Consolidated Statement of Financial Position

CONFORM IFRS	Year ended	Year ended
	31/12/2013	31/12/2012
in k EUR	audited	audited
Current Assets :
Cash and cash equivalents	27,722	21,317
Current investments	3,827	3,928
A/R Trade	39,467	35,359
A/R from related parties	1,636	636
Assets for current tax	4,803	5,467
Other current assets	6,466	8,002
Inventories	44,265	38,359
Total current assets	128,187	113,067
Non current assets :
Costs of incorporation
Property, plant and equipment	66,324	60,004
Financial assets	6	30
Intangible fixed assets	4,727	2,113
A/R directors
Other non-current assets	1,477	5,551
Deferred tax assets	14,096	14,805
Total non current assets	86,630	82,503
Total assets	214,817	195,570

CONFORM IFRS	Year ended	Year ended
in k EUR	31/12/2013 audited	31/12/2012 audited
Liabilities and shareholders Equity
Current liabilities :
Bank loans and overdrafts
Derivative financial instruments	1,146	1,103
Current portion of LT debt	4,147	34,648
A/P trade	13,895	12,329
Affiliated companies	7,461	4,680
Accrued taxes	3,681	3,572
Accrued expenses and payroll	5,171	4,263
Other current liabilities	1,251	1,374
Deferred income	549	581
Total current liabilities	37,302	62,550
Non current liabilities :
LT debt less current portion	18,177	2,328
Deferred tax liabilities
Other non-current liabilities	1,700	1,415
Total non current liabilities	19,877	3,743
Shareholders' equity:
Shareholders' capital	565	565
Share premium
Treasury shares	-3,818 -261	-3,818 -608
Revaluation reserve Hedge Revaluation reserve Fair value	1,304	73
Legal reserve	57	57
Retained earnings	105,224	81,733
Current period's profit	55,214	51,529
Cumulative translation adjustment	-657	-264
Equity attributable to company owners:	157,628	129,267
Non controlling interests	10	10
Total shareholders equity	157,638	129,277
Total liabilities, shareholders' equity	214,817	195,570
and minority interests

Consolidated Statements of Cash Flow

	Year ended 31/12/2013	Year ended 31/12/2012
(in k EUR)	audited	audited
Cash flow from operating activities
Net income	55,214	51,529
Adjustments for :
Operating activities	17,103	16,787
Deferred taxes	709	16
Capital grants	1,161	719
Depreciation and amortisation	15,509	15,210
Unrealized exchange results	-226	1,124
Financial result	-51	-282
Operating profit before working capital changes
A/R, Trade	-4,847	2,346
A/R, affiliates	-1,000	86
Other current assets	2,604	-8,165
Other non current assets	4,074	-617
Inventories	-7,544	-4,497
A/P	1,575	4,173
A/P affiliates	2,781	-436
Accrued expenses	5,370	2,904
Other current liabilities	74 286	-1,690 -1,351
Other non current liabilities Interest paid	-519	-2,000
Income tax	-4,347	-3,612
Cash flow from operating activities	70,825	55,456
Cash flow from investing activities
Acquisition of subsidiary, net of cash acquired
Financial fixed assets
Purchase of PPE and intangible assets (netted)	-22,532	-20,749
Interest received	690	1,220
Investments/proceeds/ from current investments	125	677
(incl. financial instruments)
Cash provided from investing activities	-21,717	-18,851
Cash flows from financing activities
Payment to acquire own shares		-2,399
Proceeds/Repayment of long-and short-term debt	-14,648	-4,648
Proceeds/Repayment of bank loans and overdrafts
Proceeds from (repayment of) related party financing
Dividend payment	-28,038	-26,036
Capital Decrease
Non controlling interests
Cash provided from financing activities	-42,686	-33,083
CTA	-16	-11
Increase/decrease in cash and cash equivalents Cash at beginning of the period	6,405 21,317	3,510 17,806

We Engineer The Sustainable Future

Turnover per Business Unit

(in k EUR)	Q4/13 Q4/12		% CHANGE (Y-O-Y)
Sensors	46,482	35,068	33%
Wireless	5,033	3,356	50%
Actuators	18,593	19,548	-5%
Opto	4,272	3,287	30%
Other	742	838	-11%
TOTAL	75,122	62,097	21%

(in k EUR)	Q4/13	Q3/13	% CHANGE (Q-O-Q)
Sensors	46,482	43,175	8%
Wireless	5,033	4,697	7%
Actuators	18,593	19,310	-4%
Opto	4,272	3,490	22%
Other	742	613	21%
TOTAL	75,122	71,285	5%

(in k EUR)	2013 2012		% CHANGE (Y-O-Y)
Sensors	163,893	136,205	20%
Wireless	18,083	14,512	25%
Actuators	76,515	78,692	-3%
Opto	14,266	14,636	-3%
Other	2,595	2,996	-13%
TOTAL	275,352	247,041	11%

7

Sales per Geography

	Q4/13	Q4/12	Q3/13	2013	2012
APAC Asia Pacific	43%	43%	42%	41%	40%
EMEA Europe - Middle-East - Africa	41%	40%	41%	42%	42%
NALA North America - Latin America	16%	17%	17%	17%	18%
TOTAL	100%	100%	100%	100%	100%