Melexis N.V.

Earnings Release • Oct 30, 2024

Press release - Regulated Information

Melexis Q3 2024 results – Third quarter sales of 247.9 million EUR

Intermediate declaration by the Board of Directors

Ieper, Belgium – October 30th, 2024, 07.00 hrs CET

CONFORM IFRS	Q3 2024	Q3 2023	YOY change	Q2 2024	SEQ change
in k EUR			(%)		(%)
Sales	247,858	248,551	0%	245,729	1%
Gross result	108,241	114,492	-5%	108,766	0%
Gross Margin	43.7%	46.1%		44.3%
EBIT	64,210	71,136	-10%	64,358	0%
EBIT in %	25.9%	28.6%		26.2%
EBITDA	75,986	82,161	-8%	76,701	-1%
EBITDA in %	30.7%	33.1%		31.2%
Net result	51,152	56,814	-10%	49,069	4%
Net result per share (EPS)	1.27	1.41		1.21
CAPEX	13,901	28,030		13,223

Sales for the third quarter of 2024 were 247.9 million EUR, stable compared to the same quarter of the previous year and an increase of 1% compared to the previous quarter.

The EUR/USD exchange rate evolution had no impact on sales compared to the same quarter of last year and a negative impact of 1% on sales compared to the previous quarter.

The gross result was 108.2 million EUR or 43.7% of sales, a decrease of 5% compared to the same quarter of last year and stable compared to the previous quarter.

R&D expenses were 10.7% of sales, G&A was at 5.1% of sales and Selling was at 1.9% of sales.

The operating result was 64.2 million EUR or 25.9% of sales, a decrease of 10% compared to the same quarter of last year and stable compared to the previous quarter.

The net result was 51.2 million EUR or 1.27 EUR per share, a decrease of 10% compared to 56.8 million EUR or 1.41 EUR per share in the third quarter of 2023 and an increase of 4% compared to the previous quarter.

CONFORM IFRS	9M 2024	9M 2023	YOY change
in k EUR			(%)
Sales	735,401	713,803	3%
Gross result	323,791	328,552	-1%
Gross Margin	44.0%	46.0%
EBIT	192,298	199,710	-4%
EBIT in %	26.1%	28.0%
EBITDA	227,657	233,506	-3%
EBITDA in %	31.0%	32.7%
Net result	153,167	159,630	-4%
Net result per share (EPS)	3.79	3.95
CAPEX	46,223	67,122

Sales for the first nine months of 2024 were 735.4 million EUR, an increase of 3% compared to the first nine months of 2023.

The EUR/USD exchange rate evolution had no impact on sales compared to the first nine months of 2023. The gross result was 323.8 million EUR or 44.0% of sales, a decrease of 1% compared to the same period last year. R&D expenses were 10.9% of sales, G&A was at 5.1% of sales and Selling was at 1.9% of sales. The operating result was 192.3 million EUR or 26.1% of sales, a a decrease of 4% compared to 199.7 million EUR in the same nine months of 2023.

The net result was 153.2 million EUR or 3.79 EUR per share, a decrease of 4% compared to 159.6 million EUR or 3.95 EUR per share in the first nine months of 2023.

Outlook

Melexis expects sales in the fourth quarter of 2024 to be in the range of 200 to 210 million EUR.

For the full year 2024, Melexis expects sales to be around 935 to 945 million euro (previously around 1 billion euro), with a gross profit margin above 43% (previously above 44%) and an operating margin above 24% (previously above 25%), all taking into account a EUR/USD exchange rate of 1.08 for the remainder of the year.

For the full year 2024, Melexis expects CAPEX to be around 60 million EUR.

Business update

With 247.9 million EUR sales, Melexis achieved Q3 2024 sales in line with the third quarter of 2023 and 1% higher than the second quarter of 2024, landing at the lower end of the guidance. The outperforming product lines were magnetic position sensors and pressure sensors.

Melexis expanded its sensor portfolio in Q3 2024, with a focus on automotive and industrial applications. Enhancements were made to the Triaxis® magnetic sensing ICs for improved functional safety in steering and pedal position sensing. A Dual Latch IC was added for use in a wide range of embedded applications, including automotive, alternative mobility, consumer and industrial. The company also launched the Triphibian™ pressure sensor IC with a digital output, designed for EV thermal management. Additionally, Melexis enhanced its current sensor ICs, improving both isolation capabilities and functional safety compliance for demanding automotive applications.

Sales to automotive customers represented 90% of total sales in the third quarter of 2024, and 89% of total sales for the first nine months of 2024.

Quote from CEO Marc Biron

"Melexis has performed well over the first nine months of 2024, including 3% sales growth versus the record sales for the first nine months of 2023, despite more challenging end-market circumstances. Recent discussions with customers indicate that they wish to reduce significantly their inventories by year-end, which we have decided to assume. While the inventory correction at our automotive customers is temporary and global car production is projected to grow in 2025, visibility on next year is limited today.

Our growth trajectory and leadership position in sensors and drivers for the automotive market are intact. Melexis products are well-positioned to benefit from continuous automotive content growth, and our diversified product portfolio addresses all types of powertrains. Year to date, we have strong traction with design wins, in particular in China. At the same time we continue to record solid results in Beyond Automotive, which confirms our strategy to diversify our portfolio in robotics, digital health, alternative mobility and sustainable world."

Financial Calendar

• Publication FY 2024 Results: February 5, 2025 (at 7 hrs CET)
• Publication Q1 Results 2025: April 30, 2025 (at 7 hrs CET)
• Publication Q2 Results 2025: July 30, 2025 (at 7 hrs CET)
• Publication Q3 Results 2025: October 29, 2025 (at 7 hrs CET)
• Publication FY 2025 Results: February 4, 2026 (at 7 hrs CET)

The company's results will be discussed in a conference call and an audiocast on Wednesday, October 30th , 2024 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: Investors Investor Relations Email: investor@melexis.com

Journalists Brand & Communications Email: brandcomms@melexis.com

About Melexis

Melexis designs, develops, and delivers edge sensor and driver solutions with a heart for people and planet. Its mission is to empower engineers to turn their ideas into applications that support the best imaginable future, one that is safe, comfortable and sustainable.

Melexis specializes in powertrain, thermal management, lighting, e-brake, e-steering and battery solutions for the automotive sector. It also expands its presence in the emerging markets of sustainable world, alternative mobility, robotics, and digital health.

Founded in 1989 in Belgium, Melexis has grown to employ over 2,000 people in 12 countries, delivering cutting-edge technology to customers worldwide.

For more information, visit www.melexis.com or follow Melexis on LinkedIn, and YouTube.

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.

CONFORM IFRS		Quarter ended Quarter ended	Nine months ended	Nine months ended	Year ended
	30/9/2024	30/9/2023	30/9/2024	30/9/2023	31/12/2023
in k EUR					audited
Sales	247,858	248,551	735,401	713,803	964,298
Cost of sales	-139,617	-134,059	-411,611	-385,251	-524,077
Gross result	108,241	114,492	323,791	328,552	440,220
R&D	-26,565	-26,496	-80,025	-76,965	-106,732
G&A	-12,693	-12,004	-37,210	-36,295	-50,602
Selling	-4,773	-4,855	-14,258	-15,582	-21,636
Operating result (EBIT)	64,210	71,136	192,298	199,710	261,250
Financial result	-1,740	-3,168	-6,470	-5,488	-8,087
Result before taxes	62,471	67,968	185,827	194,222	253,163
Income taxes	-11,319	-11,155	-32,660	-34,592	-43,699
Net result	51,152	56,814	153,167	159,630	209,463
Net result per share in EUR	1.27	1.41	3.79	3.95	5.18

Condensed Consolidated interim Statement of Profit and Loss

Condensed Consolidated interim Statement of Financial Position

CONFORM IFRS	Nine months ended 30/9/2024	Nine months ended 30/9/2023	Year ended 31/12/2023
in k EUR			audited
Current Assets :
Cash and cash equivalents	34,463	30,523	39,349
Current investments	231	246	—
A/R Trade	129,788	130,792	120,203
A/R from related parties		1,298	3
Assets for current tax	14,683	182	3,727
Other current assets	42,903	20,745	32,429
Inventories	252,405	227,365	254,348
Total current assets	474,472	411,151	450,060
Non-current assets :
Property, plant and equipment	208,836	175,212	195,884
Leased assets	7,185	3,524	3,497
Intangible fixed assets	1,297	2,143	2,075
Other non-current assets	172,444	176,125	181,233
Deferred tax assets	32,825	30,516	33,332
Total non-current assets	422,587	387,520	416,021
Total assets	897,059	798,671	866,081

CONFORM IFRS	Nine months ended 30/9/2024	Nine months ended 30/9/2023	Year ended 31/12/2023
in k EUR			audited
Current liabilities :
Derivative financial instruments	—	—	259
Lease liabilities	514	448	1,527
A/P trade	54,939	31,747	79,689
Affiliated companies		32,160	342
Accrued taxes	6,326	4,115	2,642
Short-term employee benefits accruals	17,960	22,412	23,680
Other current liabilities	8,521	14,842	12,964
Deferred income	4,412	4,788	2,926
Total current liabilities	92,672	110,511	124,029
Non current liabilities :
LT debt less current portion	187,609	126,853	184,659
Lease liabilities	6,779	3,110	1,990
Deferred tax liabilities	586	189	710
Other non-current liabilities	4,466	4,904	3,626
Total non current liabilities	199,439	135,056	190,985
Shareholders' equity :
Shareholders' capital	565	565	565
Legal reserve	57	57	57
Retained earnings	455,810	396,362	343,842
Current period's profit	153,167	159,630	209,463
Cumulative translation adjustment	-4,650	-3,509	-2,860
Equity attributable to company owners	604,948	553,104	551,067
Non controlling interests	—	—	—
Total shareholders equity	604,948	553,104	551,067
Total liabilities, shareholders' equity and minority interests	897,059	798,671	866,081

Condensed Consolidated interim Statements of Cash Flow

CONFORM IFRS	Quarter ended	Quarter ended	Nine months	Nine months	Year ended
	30/9/2024	30/9/2023	ended 30/9/2024	ended 30/9/2023	31/12/2023
in k EUR					audited
Cash flow from operating activities
Net income	51,152	56,814	153,167	159,630	209,463
Adjustments for :
Operating activities	23,780	25,229	74,945	74,502	93,540
Depreciation and amortisation	11,275	10,542	33,813	32,420	43,332
Depreciation leased assets	501	483	1,546	1,376	1,837
Other provisions	-14	—	126	631	-646
Deferred income	-6	-7	1,486	836	-1,027
Unrealized financial result	-1,707	3,059	-2,037	2,048	1,616
Financial result	2,411	-2	7,351	2,599	4,728
Income tax expense/income	11,319	11,155	32,660	34,592	43,699
Operating profit before working capital changes	74,931	82,043	228,112	234,132	303,003
A/R, Trade	-10,290	2,333	-9,582	-23,266	-11,428
A/R, affiliates	—	-45	—	-12	1,283
Other current assets	-18,133	1,514	-10,474	-687	-12,121
Other non current assets	20,419	-34,612	8,790	-173,756	-178,864
Inventories	3,045	-16,239	-3,173	-53,065	-75,619
A/P	-7,345	363	-25,091	3,041	50,534
A/P affiliates	—	-1,736	—	5,964	-25,854
Employee benefit liabilities	2,712	4,627	-5,750	1,316	2,339
Other current liabilities	-528	7,808	-4,443	10,091	7,834
Cash generated from operations	64,811	46,055	178,389	3,758	61,106
Interest paid	-3,044	-1,698	-8,064	-2,914	-5,336
Income tax paid	-11,922	-10,960	-39,365	-36,150	-52,760
Cash flow from operating activities	49,846	33,397	130,960	-35,307	3,011
Cash flow from investing activities
Acquisition of subsidiary, net of cash acquired	—	—	—	—	-9,409
Purchase of PPE and intangible assets (netted)	-13,743	-28,030	-40,870	-67,122	-94,790
Interest received	82	72	270	728	892
Investments/proceeds/ from current investments	—	—	—	11,629	11,629
Cash provided from investing activities	-13,660	-27,958	-40,600	-54,765	-91,679
Cash flows from financing activities
Proceeds/Repayment of long-and short-term debt	-42,209	-8,719	2,950	126,551	184,659
Repayment leasings	-497	-281	-1,458	-651	-737
Impact of exchange results on financing items	2,357	-1,736	150	-1,186	833
Dividend payment	—	—	-96,960	-88,880	-141,400
Cash provided from financing activities	-40,349	-10,736	-95,318	35,833	43,355
Effect of exchange rate changes on cash and cash
equivalents	75	110	71	-319	-418
Increase/decrease in cash and cash equivalents	-4,088	-5,187	-4,886	-54,557	-45,731
Cash at beginning of the period	38,551	35,710	39,349	85,080	85,080
Cash at the end of the period	34,463	30,523	34,463	30,523	39,349

Sales per Geography

	Q3 2024	Q3 2023	9M 2024	9M 2023	FY 2023
APAC	61%	58%	60%	57%	58%
Asia Pacific
EMEA	30%	32%	31%	32%	31%
Europe - Middle-East - Africa
NALA	9%	10%	9%	11%	11%
North America - Latin America
TOTAL	100%	100%	100%	100%	100%