Melexis N.V.

Earnings Release • Oct 21, 2015

Melexis Q3 2015 results – Results in line with guidance

Intermediate declaration by the Board of Directors

Ieper, Belgium – October 21st, 2015, 07.00 hrs CET

Sales for the third quarter of 2015 were 101.6 million EUR, an increase of 17% compared to the same quarter of the previous year and flat compared to the previous quarter.

The EUR/USD exchange rate evolution had a positive impact of 12% compared to the same quarter of last year and a negative impact of 1% compared to the previous quarter.

Gross margin was 47.8 million EUR, an increase of 11% compared to the same quarter of last year.

R&D expenses were 13.6% of sales, G&A was at 4.6% of sales and Selling was at 2.1% of sales. The operating result was 27.2 million EUR, an increase of 4% compared to the same quarter of the previous year.

Net income was 25.0 million EUR or 0.62 EUR per share, an increase of 1% compared to 24.7 million EUR or 0.61 EUR per share in the third quarter of 2014.

Outlook

Melexis expects in the fourth quarter of 2015 a low single digit sales decrease versus the third quarter of 2015, resulting in a full year sales growth close to 20%, a gross profit margin above 47% and an operating margin above 26%, taking into account the current EUR/USD exchange rate.

Business comment – Françoise Chombar, CEO:

"The results of the third quarter of 2015 are in line with our earlier guidance. We noticed some unusual combinations of ups and downs in our product lines: LIN RGB and some ASICs picking up very well, while in some areas we saw a number of inventory corrections. We interpret this mixed product line behaviour as a consequence of a mixed picture on the global markets. Customer sentiment remains short term unclear, though we observe the first signs of improvement beginning 2016. The long term growth still stands out strong, as Melexis innovative products are extremely suitable to address the challenges of the car of the future: a smart, safe, sustainable and stylish car.

Sales to automotive customers represented 89% of total sales. The portion of standard product (ASSPs) sales represented 57% of total sales.''

Financial Calendar

• Dividend pay date: October 22 nd , 2015 (ex coupon on October 20th, 2015)
• Publication FY 2015 Results: February 10, 2016

The company's results will be discussed in a conference call on Wednesday, October 21st, 2015 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=713722&Conf=193287 Conference ID: 955395.

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: 955395.

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 are the essential element in nearly every one of our customers' extraordinary systems. At Melexis we engineer the sustainable future. 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.

We Engineer The Sustainable Future

Consolidated Income Statement

CONFORM IFRS	Quarter ended 30/09/2015	Quarter ended 30/09/2014	30/09/2015	Nine months ended Nine months ended 30/09/2014	Year ended 31/12/2014
in k EUR					audited
Sales	101,563	86,646	297,740	244,274	332,408
Cost of sales	-53,745	-43,626	-153,111	-126,787	-171,102
Gross Margin	47,818	43,020	144,629	117,487	161,306
	-13,790 R&D	-10,987	-40,601	-32,628	-45,434
	-4,690 G&A	-3,992	-13,853	-11,727	-16,381
Selling	-2,112	-1,859	-6,474	-5,941	-7,976
Other operating result	0	0	0	0	-2,340
Operating result	27,227	26,182	83,700	67,191	89,175
Financial result	-315	349	1,620	1,809	2,908
Income before taxes	26,912	26,531	85,319	69,000	92,083
Income taxes	-1,885	-1,871	-8,264	-4,245	-7,089
Net income	25,026	24,660	77,055	64,754	84,994
Net income per share in EUR	0.62	0.61	1.91	1.60	2.10

Consolidated Statement of Financial Position

CONFORM IFRS	30/09/2015	Nine months ended Nine months ended 30/09/2014	Year ended 31/12/2014
in k EUR			audited
Current Assets :
Cash and cash equivalents	109,821	78,080	59,610
Current investments	111	0	17
A/R Trade	50,077	44,477	40,382
A/R from related parties	3,864	3,896	1,584
Advance related parties
Assets for current tax	995	1,008	978
Assets held for sale	289	0	1,210
Other current assets	8,335	6,463	5,911
Inventories	64,326	52,152	56,412
Total current assets	237,819	186,077	166,103
Non-current assets :
Costs of incorporation
Property, plant and equipment	83,033	69,480	71,733
Financial assets	6	6	6
Intangible fixed assets	6,646	4,834	4,723
A/R directors
Other non-current assets	959	1,477	964
Deferred tax assets	11,609	14,204	13,245
Total non current assets	102,253	90,002	90,671
Total assets	340,072	276,079	256,773

CONFORM IFRS		Nine months ended Nine months ended	Year ended
	30/09/2015	30/09/2014	31/12/2014
in k EUR			audited
Liabilities and shareholders Equity
Current liabilities :
Bank loans and overdrafts
Derivative financial instruments	1,531	2,174	2,050
Current portion of LT debt	5,046	4,148	4,148
A/P trade	14,359	12,426	13,863
Affiliated companies	10,236	7,428	6,159
Accrued taxes	6,244	4,466	4,894
Accrued expenses and payroll	8,225	6,776	6,585
Other current liabilities	1,615	1,258	1,343
Deferred income	1,790	486	436
Total current liabilities	49,045	39,163	39,480
Non current liabilities :
LT debt less current portion	16,137	14,059	14,033
Deferred tax liabilities
Other non-current liabilities	1,967	1,768	1,899
Total non current liabilities	18,104	15,827	15,932
Shareholders' equity :
Shareholders' capital	565	565	565
Share premium
Treasury shares	-3,818	-3,818	-3,818
Revaluation reserve Hedge	-383	-472	-453
Revaluation reserve Fair value
Legal reserve	57	57	57
Retained earnings	205,378	160,438	120,384
Current period's profit	77,055	64,754	84,994
Cumulative translation adjustment	-5,942	-446	-379
Equity attributable to company owners	272,912	221,078	201,351
Non controlling interests	10	10	10
Total shareholders equity	272,922	221,088	201,361
Total liabilities, shareholders' equity	340,072	276,079	256,773
and minority interests

We Engineer The Sustainable Future

Consolidated Statements of Cash Flow

CONFORM IFRS	Quarter ended	Quarter ended	Nine Months ended
(in k EUR)	30/09/2015	30/09/2014	30/09/2015
Cash flow from operating activities
Net income	25,026	24,660	77,055
Adjustments for :
Operating activities	7,375	4,670	19,891
Deferred taxes Capital grants	3 349	-18 72	1,636 558
Depreciation and amortisation	6,614	4,600	18,058
Unrealized exchange results	111	632	-277
Financial result	298	-617	-84
Operating profit before working capital changes	32,401	29,330	96,946
A/R, Trade	504	-632	-10,060
A/R, affiliates	3,251	3,072	-2,280
Other current assets	-1,086	-690	-2,908
Other non current assets	0	4	4
Inventories	-3,097	-2,481	-10,919
A/P	-1,095	-309	455
A/P affiliates	1,366	-1,324	4,077
Accrued expenses	4,027	3,570	6,095
Other current liabilities	-369	397	141
Other non current liabilities	1,460	561	902
Interest paid	-107	-97	-296
Income tax	-1,128	-1,004	-3,106
Cash flow from operating activities	36,126	30,399	79,052
Cash flow from investing activities
Acquisition of subsidiary, net of cash acquired
Financial fixed assets
Purchase of PPE and intangible assets (netted)	-8,836	-5,725	-26,999
Interest received	36	50	175
Investments/proceeds/ from current investments	240	0	-94
(incl. financial instruments)
Cash provided from investing activities	-8,559	-5,675	-26,917
Cash flows from financing activities
Payment to acquire own shares Proceeds/Repayment of long-and short-term debt	-1,922	-26	2,989
Proceeds/Repayment of bank loans and overdrafts
Proceeds from (repayment of) related party financing
Impact of exchange results on financing items	3,245	0	-4,917
Dividend payment
Capital Decrease
Non controlling interests
Cash provided from financing activities	1,323	-26	-1,927
CTA	-1	49	3
Increase/decrease in cash and cash equivalents	28,889	24,746	50,210
Cash at beginning of the period	80,931	53,334	59,610
Cash at the end of the period	109,821	78,080	109,821

We Engineer The Sustainable Future

Sales per Geography

	Q3/15	Q3/14	Q2/15	9M 2015	9M 2014
APAC Asia Pacific	45%	46%	47%	46%	43%
EMEA Europe - Middle-East - Africa	41%	38%	39%	40%	41%
NALA North America - Latin America	14%	16%	14%	14%	16%
TOTAL	100%	100%	100%	100%	100%