Melexis N.V.

Earnings Release • Apr 28, 2021

Press release - Regulated Information

Melexis Q1 2021 results – First quarter sales of 155.6 million EUR

Intermediate declaration by the Board of Directors

Ieper, Belgium – April 28th , 2021, 07.00 hrs CET

CONFORM IFRS	Q1 2021	Q1 2020	YOY growth	Q4 2020	SEQ growth
in k EUR			(%)		(%)
Sales	155,634	138,162	13%	147,400	6%
Gross result	65,289	56,033	17%	58,293	12%
Gross Margin	42.0%	40.6%		39.5%
EBIT	34,511	23,980	44%	25,763	34%
EBIT in %	22.2%	17.4%		17.5%
EBITDA	46,528	36,112	29%	37,038	26%
EBITDA in %	29.9%	26.1%		25.1%
Net result	27,765	20,706	34%	24,012	16%
Net result per share (EPS)	0.69	0.51		0.59
CAPEX	10,951	6,783		8,131

Sales for the first quarter of 2021 were 155.6 million EUR, an increase of 13% compared to the same quarter of the previous year and an increase of 6% compared to the previous quarter.

The EUR/USD exchange rate evolution had a negative impact on sales of 4% compared to the same quarter of last year and no impact compared to the previous quarter.

The gross result was 65.3 million EUR or 42.0% of sales, an increase of 17% compared to the same quarter of last year and an increase of 12% compared to the previous quarter.

R&D expenses were 12.7% of sales, G&A was at 4.9% of sales and Selling was at 2.2% of sales. The operating result was 34.5 million EUR or 22.2% of sales, an increase of 44% compared to the same quarter of last year and an increase of 34% compared to the previous quarter.

The net result was 27.8 million EUR or 0.69 EUR per share, an increase of 34% compared to 20.7 million EUR or 0.51 EUR per share in the first quarter of 2020 and an increase of 16% compared to the previous quarter.

Outlook

Melexis expects sales in the second quarter of 2021 in the range of 155-160 million euro. For the full year 2021, Melexis expects a sales growth between 22% and 25%, with a gross profit margin of 41% and an operating margin of 21% at the midpoint of the sales guidance, all taking into account a EUR/USD exchange rate of 1.21.

Business comment – Françoise Chombar, CEO:

"Continuing on its growth path, Melexis posted a sequential sales growth of 6% in the first quarter of 2021, propelled by strong demand and order intake on the one hand, yet constrained by extended lead times and ongoing issues in every step of the supply chain on the other. Structurally, we continue to enjoy strong momentum of new products and content growth. As demand continues to surge and shortages in the industry persist, matching the elevated demand with a limited supply is one of the biggest challenges we are facing today. Based on the current order book, it has now become more likely that sales in the second half of the year will remain strong. This is why we significantly increased our guidance for the full year.

In the first quarter of 2021, the outperforming product lines were embedded lighting, temperature sensors and the magnetic sensors product family.

Following the recent advertising campaigns from major OEMs, our LIN RGB products used in interior ambient lighting are gaining traction.

In the adjacent markets, we reached a record sales number, thanks among others to our temperature sensors showing continued growth and our magnetic sensors product family, particularly successful in gaming, industrial and micromobility applications.

Sales to automotive customers represented 89% of total sales in the first quarter of 2021. The portion of standard product (ASSP) sales represented 71% of total sales in the first quarter of 2021."

Financial Calendar

• Annual Shareholders Meeting: May 11, 2021
• Dividend pay date: May 17, 2021 (ex coupon on May 13, 2021)
• Analyst Meeting: June 1st, 2021
• Publication Q2 Results 2021: July 28, 2021 (at 7 hrs CET)
• Publication Q3 Results 2021: October 27, 2021 (at 7 hrs CET)
• Publication FY 2021 Results: February 2, 2022 (at 7 hrs CET)

The company's results will be discussed in a conference call and an audiocast on Wednesday, April 28th , 2021 at 10:30 hrs CET.

To register for the conference call (possibility to ask questions)

The conference call will be in English. You have to register for this conference call in advance. You can register by clicking here and filling out the requested information. 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.

To register for the audiocast (no possibility to ask questions)

To register for the audiocast, click here.

For more information: Investor Relations Phone: +32 13 67 07 79 Email: investor@melexis.com

About Melexis

Combining a passion for technology with truly inspired engineering, Melexis designs, develops and delivers innovative micro-electronic solutions that enable designers to turn ideas into applications that support the best imaginable future. The company's advanced mixed-signal semiconductor sensor and actuator components address the challenges of integrating sensing, driving and communication into next-generation products and systems that improve safety, raise efficiency, support sustainability and enhance comfort. Melexis is headquartered in Belgium and employs approximately 1500 people in 12 countries. The company is publicly traded on Euronext Brussels (MELE). For more information, visit 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.

Consolidated Income Statement

CONFORM IFRS	Quarter ended 31/03/2021	Quarter ended 31/03/2020	Year ended 31/12/2020
in k EUR			audited
Sales	155,634	138,162	507,517
Cost of sales	-90,345	-82,129	-309,529
Gross result	65,289	56,033	197,988
R&D	-19,711	-20,519	-77,691
G&A	-7,648	-7,815	-30,930
Selling	-3,419	-3,719	-13,834
Other operating result
Operating result (EBIT)	34,511	23,980	75,534
Financial result	-2,138	-449	379
Result before taxes	32,372	23,530	75,913
Income taxes	-4,607	-2,824	-6,613
Net result	27,765	20,706	69,299
Net result per share in EUR	0.69	0.51	1.72

Consolidated Statement of Financial Position

CONFORM IFRS in k EUR	Quarter ended 31/03/2021	Quarter ended 31/03/2020	Year ended 31/12/2020 audited
Current Assets :
Cash and cash equivalents	76,913	51,051	58,883
Current investments	522	2	245
A/R Trade	74,657	69,149	65,099
A/R from related parties	335	61	372
Advance related parties
Assets for current tax	5,022	1,848	4,695
Assets held for sale
Other current assets	12,181	12,833	10,637
Inventories	123,758	129,887	123,457
Total current assets	293,387	264,832	263,389
Non-current assets :
Costs of incorporation
Property, plant and equipment	132,020	140,711	129,949
Leased assets	2,426	4,489	2,731
Financial assets	0	0	0
Intangible fixed assets	4,243	4,765	4,650
A/R directors
Other non-current assets	4,201	3	4,203
Deferred tax assets	28,360	28,057	28,490
Total non current assets	171,250	178,025	170,023
Total assets	464,637	442,857	433,412

CONFORM IFRS	Quarter ended	Quarter ended	Year ended
	31/03/2021	31/03/2020	31/12/2020
in k EUR			audited
Liabilities and shareholders Equity
Current liabilities :
Bank loans and overdrafts
Derivative financial instruments	230	0	0
Current portion of LT debt	0	0	0
Lease liabilities	1,186	1,405	1,633
A/P trade	18,253	15,160	18,328
Affiliated companies	17,352	16,588	15,759
Accrued taxes	308	2,603	473
Accrued expenses and payroll	15,458	15,366	11,882
Other current liabilities	3,613	4,710	3,433
Deferred income	1,826	2,012	2,799
Total current liabilities	58,226	57,845	54,307
Non current liabilities :
LT debt less current portion	30,000	62,000	62,000
Lease liabilities	2,256	3,127	2,122
Deferred tax liabilities	210	327	207
Other non-current liabilities		0
Total non current liabilities	32,466	65,454	64,329
Shareholders' equity :
Shareholders' capital	565	565	565
Share premium
Treasury shares	0	-3,818	-3,818
Revaluation reserve Hedge	0	0	0
Revaluation reserve Fair value	0	0	0
Legal reserve	57	57	57
Retained earnings	350,901	306,856	254,786
Current period's profit	27,765	20,706	69,299
Cumulative translation adjustment	-5,343	-4,808	-6,113
Equity attributable to company owners	373,944	319,557	314,776
Non controlling interests	0	0	0
Total shareholders equity	373,945	319,558	314,776
Total liabilities, shareholders' equity	464,637	442,857	433,412
and minority interests

Consolidated Statements of Cash Flow

CONFORM IFRS	Quarter ended	Quarter ended	Year ended
	31/03/2021	31/03/2020	31/12/2020
(in k EUR)			audited
Cash flow from operating activities
Net income Adjustments for :	27,765 0	20,706 0	69,299
Operating activities	19,221	14,887	47,625
Deferred taxes	130	-408	-841
Capital grants	185	193	942
Depreciation and amortisation	11,587	11,654	44,453
Depreciation leased assets	431	479	1,918
Accrued income tax	4,089	2,590	4,550
Unrealized exchange results	1,869	-3	-2,213
Financial result	930	382	-1,184
Operating profit before working capital changes	46,986	35,592	116,925
A/R, Trade	-9,546	-10,866	-6,974
A/R, affiliates	38	74	-237
Other current assets	-2,080	-3,325	-4,756
Other non current assets	2		-4,200
Inventories	-2,598	-2,913	-210
A/P	-83	-955	2,237
A/P affiliates	1,593	856	26
Accrued expenses	3,577	4,723	1,239
Other current liabilities	155	302	-870
Other non current liabilities	-741	-278	389
Interest paid Income tax paid	-46 -4,254	-124 -3,238	-482 -7,327
Cash flow from operating activities	33,001	19,850	95,761
	0	0
	0	0
Cash flow from investing activities	0	0
Acquisition of subsidiary, net of cash acquired	0	0
Financial fixed assets	0	0
Purchase of PPE and intangible assets (netted)	-10,951	-6,783	-24,835
Interest received	3	31	56
Investments/proceeds/ from current investments	-277	76	-167
Investments/proceeds/ from non current investments (incl. financial instruments)	0 0	0
Cash provided from investing activities	-11,224	-6,676	-24,946
	0	0
Cash flows from financing activities	0	0
Payment to acquire own shares	0	0
Proceeds/Repayment of long-and short-term debt	-32,036	-21	94
Proceeds/Repayment of bank loans and overdrafts	0
Repayment leasings	-438	-475	-934
Proceeds from (repayment of) related party financing	0
Impact of exchange results on financing items	-1,927	-349	2,272
Dividend payment	0		-52,070
Sale own shares	30,634
Non controlling interests	0		0
Cash provided from financing activities	-3,768	-845	-50,638
	0	0
CTA	21	-49	-65
Increase/decrease in cash and cash equivalents	18,030	12,279	20,112
Cash at beginning of the period	58,883	38,772	38,772
Cash at the end of the period	76,913	51,051	58,883

Sales per Geography

	Q1 2021	Q1 2020	FY 2020
APAC Asia Pacific	53%	51%	55%
EMEA Europe - Middle-East - Africa	36%	36%	34%
NALA North America - Latin America	11%	13%	11%
TOTAL	100%	100%	100%