Melexis N.V.

Earnings Release • Apr 27, 2022

Press release - Regulated Information

Melexis Q1 2022 results – First quarter sales of 184.1 million EUR

Intermediate declaration by the Board of Directors

Ieper, Belgium – April 27 th , 2022, 07.00 hrs CET

CONFORM IFRS	Q1 2022	Q1 2021	YOY change	Q4 2021	SEQ change
in k EUR			(%)		(%)
Sales	184,064	155,634	18%	166,229	11%
Gross result	83,145	65,289	27%	70,639	18%
Gross Margin	45.2%	42.0%		42.5%
EBIT	49,859	34,511	44%	37,827	32%
EBIT in %	27.1%	22.2%		22.8%
EBITDA	61,312	46,528	32%	48,941	25%
EBITDA in %	33.3%	29.9%		29.4%
Net result	48,620	27,765	75%	33,296	46%
Net result per share (EPS)	1.20	0.69		0.82
CAPEX	6,185	10,951		10,086

Sales for the first quarter of 2022 were 184.1 million EUR, +18% compared to the same quarter of the previous year and +11% compared to the previous quarter.

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

The gross result was 83.1 million EUR or 45.2% of sales, +27% compared to the same quarter of last year and +18% compared to the previous quarter.

R&D expenses were 11.1% of sales, G&A was at 5.0% of sales and Selling was at 2.0% of sales. The operating result was 49.9 million EUR or 27.1% of sales, +44% compared to the same quarter of last year and +32% compared to the previous quarter.

The net result was 48.6 million EUR or 1.20 EUR per share, +75% compared to 27.8 million EUR or 0.69 EUR per share in the first quarter of 2021 and +46% compared to the previous quarter.

Outlook

Melexis expects sales in the second quarter of 2022 to be around 200 million EUR.

For the full year 2022, Melexis expects a sales growth between 18% and 23%, with a gross profit margin of around 45% and an operating margin of around 25% at the midpoint of the sales guidance, all taking into account a EUR/USD exchange rate of 1.09.

Business comment – Marc Biron, CEO:

"In the context of a continuously high demand and strong order behavior, our sales are still largely driven by the available supply. The first quarter results were positively influenced by content growth, product mix, pricing and currency effects. These strong results need to be interpreted with caution. Beneficial pricing effects are expected to be compensated by inflationary cost pressure and future additional R&D spending.

In the second quarter, Melexis will benefit from higher-than-anticipated capacity throughout the supply chain. In that context, we are now able to increase our full-year guidance. Despite the confidence for the

second quarter, we remain vigilant for the rest of the year as we are confronted with many uncertainties related to supply and demand, such as geopolitical tensions, inflationary pressures, and lingering COVID-19 and China lockdown consequences.

In the first quarter of 2022, the outperforming product lines were current sensors, magnetic position sensors and pressure sensors, confirming our strategy in addressing novel automotive applications. The growth of pressure sensors is related to the significant ramp-up of our tire pressure monitoring system (TPMS) product. The growth of the current sensor family demonstrates the success of our products used in the inverters of plug-in hybrid and full electric cars as well as in solar panel applications. We also see good traction for our current sensor product portfolio in new applications such as on-board chargers and DC/DC applications. We expect that the driver ICs will contribute significantly to our growth, thanks to numerous new automotive thermal management applications. The temperature sensor product line will also bring new business in 2022 in automotive and in adjacent markets.

Sales to automotive customers represented 90% of total sales, enabled by the strong growth in automotive applications and allocation decisions. The portion of standard product (ASSPs) sales represented 74% of total sales in the first quarter of 2022."

Financial Calendar

• Annual Shareholders Meeting: May 10, 2022
• Dividend pay date: May 13, 2022 (ex coupon on May 11, 2022)
• Publication Q2 Results 2022: July 27, 2022 (at 7 hrs CET)
• Publication Q3 Results 2022: October 26, 2022 (at 7 hrs CET)
• Publication FY 2022 Results: February 1, 2023 (at 7 hrs CET)

The company's results will be discussed in a conference call and an audiocast on Wednesday, April 27 th , 2022 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	Quarter ended	Year ended
	31/03/2022	31/03/2021	31/12/2021
in k EUR			audited
Sales Cost of sales	184,064 -100,919	155,634 -90,345	643,786 -370,185
Gross result	83,145	65,289	273,601
R&D	-20,407	-19,711	-78,388
G&A	-9,216	-7,648	-32,053
Selling	-3,663	-3,419	-14,711
Other operating result
Operating result (EBIT)	49,859	34,511	148,448
Financial result	9,708	-2,138	5,852
Result before taxes	59,567	32,372	154,300
Income taxes	-10,947	-4,607	-23,192
Net result	48,620	27,765	131,108
Net result per share in EUR	1.20	0.69	3.25

Consolidated Statement of Financial Position

CONFORM IFRS in k EUR	Quarter ended 31/03/2022	Quarter ended 31/03/2021	Year ended 31/12/2021 audited
Current Assets :
Cash and cash equivalents	57,799	76,913	34,950
Current investments	20,555	522	10,356
A/R Trade	94,195	74,657	80,229
A/R from related parties	1,160	335	5,180
Advance related parties
Assets for current tax	17,115	5,022	5,976
Assets held for sale
Other current assets	15,709	12,181	10,680
Inventories	158,270	123,758	144,490
Total current assets	364,804	293,387	291,862
Non-current assets :
Costs of incorporation
Property, plant and equipment	129,114	132,020	132,020
Leased assets	4,492	2,426	4,592
Financial assets	0	0	0
Intangible fixed assets	3,854	4,243	4,335
A/R directors
Other non-current assets	3,085	4,201	3,141
Deferred tax assets	21,965	28,360	25,231
Total non current assets	162,510	171,250	169,319
Total assets	527,314	464,637	461,180

CONFORM IFRS	Quarter ended	Quarter ended	Year ended
	31/03/2022	31/03/2021	31/12/2021
in k EUR			audited
Liabilities and shareholders Equity
Current liabilities :
Bank loans and overdrafts
Derivative financial instruments	18	230	0
Current portion of LT debt	0	0	0
Lease liabilities	1,354	1,186	1,718
A/P trade	26,779	18,253	22,668
Affiliated companies	22,851	17,352	19,786
Accrued taxes	1,821	308	790
Accrued expenses and payroll	21,550	15,458	17,811
Other current liabilities	5,435	3,613	4,002
Deferred income	2,422	1,826	2,437
Total current liabilities	82,230	58,226	69,212
Non current liabilities :
LT debt less current portion	0	30,000	0
Lease liabilities	3,200	2,256	2,909
Deferred tax liabilities	0	210	4
Other non-current liabilities	4,000	0	0
Total non current liabilities	7,200	32,466	2,912
Shareholders' equity :
Shareholders' capital	565	565	565
Share premium
Treasury shares	0	0	0
Revaluation reserve Hedge	0	0	0
Revaluation reserve Fair value	0	0	0
Legal reserve	57	57	57
Retained earnings	393,129	350,901	262,021
Current period's profit	48,620	27,765	131,108
Cumulative translation adjustment	-4,487	-5,343	-4,694
Equity attributable to company owners	437,883	373,944	389,056
Non controlling interests	0	0	0
Total shareholders equity	437,883	373,945	389,056
Total liabilities, shareholders' equity	527,314	464,637	461,180
and minority interests

Consolidated Statements of Cash Flow

CONFORM IFRS	Quarter ended	Quarter ended	Year ended
	31/03/2022	31/03/2021	31/12/2021
(in k EUR)			audited
Cash flow from operating activities
Net income	48,620	27,765	131,108
Adjustments for :	0	0
Operating activities	25,428	19,221	61,178
Deferred taxes	3,266	130	3,260
Capital grants	668	185	844
Depreciation and amortisation	10,996	11,587	42,997
Depreciation leased assets	456	431	1,795
Accrued income tax	19,178	4,089	16,817
Unrealized financial result	-9,601	1,869	-6,490
Financial result	465	930	1,954
Operating profit before working capital changes A/R, Trade	74,047 -13,968	46,986 -9,546	192,286 -15,099
A/R, affiliates	4,019	38	-4,807
Other current assets	-16,833	-2,080	-2,099
Other non current assets	56	2	1,062
Inventories	-15,204	-2,598	-26,700
A/P	4,113	-83	4,285
A/P affiliates	3,065	1,593	4,027
Accrued expenses	3,739	3,577	5,929
Other current liabilities	1,436	155	526
Other non current liabilities	3,999	-741	-565
Interest paid	-27	-46	-112
Income tax paid	-18,146	-4,254	-16,501
Cash flow from operating activities	30,297	33,001	142,232
	0	0
Cash flow from investing activities
Acquisition of subsidiary, net of cash acquired	0	0
Financial fixed assets	0
Purchase of PPE and intangible assets (netted)	-6,185	-10,951	-39,088
Interest received	1	3	5
Investments/proceeds/ from current investments	0	-277	245
Investments/proceeds/ from non current investments	0	0
(incl. financial instruments)	0	0
Cash provided from investing activities	-6,184	-11,224	-38,838
Cash flows from financing activities
Payment to acquire own shares	0	0
Proceeds/Repayment of long-and short-term debt	0	-32,036	-62,008
Proceeds/Repayment of bank loans and overdrafts	0	0	0
Repayment leasings	-430	-438	-2,784
Proceeds from (repayment of) related party financing	0	0	0
Impact of exchange results on financing items	-822	-1,927	-4,316
Dividend payment	0	0	-88,880
Sale own shares	0	30,634	30,634
Non controlling interests	0	0	0
Cash provided from financing activities	-1,252	-3,768	-127,355
CTA	0 -13	21	28
Increase/decrease in cash and cash equivalents	22,849	18,030	-23,933
Cash at beginning of the period	34,950	58,883	58,883
Cash at the end of the period	57,799	76,913	34,950

Sales per Geography

	Q1 2022	Q1 2021	FY 2021
APAC Asia Pacific	59%	53%	55%
EMEA Europe - Middle-East - Africa	31%	36%	34%
NALA North America - Latin America	10%	11%	11%
TOTAL	100%	100%	100%