Melexis N.V. — Interim / Quarterly Report 2012

Oct 17, 2012

Melexis Q3 2012 results - Structural growth continues

Intermediate declaration by the Board of Directors.

Ieper, Belgium – October 17th, 2012, 07.00 hrs CET

Sales for the third quarter of 2012 were 64.4 million EUR, an increase of 13% compared to the same quarter of the previous year and an increase of 4% versus the previous quarter. The EUR/USD exchange rate evolution had a positive impact of 3% compared to the previous quarter.

Gross margin was 30.1 million EUR, an increase of 15% compared to the same quarter last year and an increase of 3% versus the previous quarter.

The operating result was 15.1 million EUR, compared to 13.0 million EUR in the same quarter of 2011 and 13.9 million EUR in the previous quarter.

Net income was 12.3 million EUR, 30 cent per share, up from 25 cent per share in the third quarter of 2011 and up from 29 cent per share in the previous quarter.

R&D expenses were 15% of sales, Selling remains stable at 3% of sales and G&A was at 5% of sales.

Melexis purchased 38.351 shares during the third quarter of 2012 at an average price of 11.76 EUR. As a result, the total number of shares amounts to 344.356 at the end of the third quarter of 2012, representing 0.85% of shares outstanding.

Françoise Chombar, CEO of Melexis comments:

"The slight slowing we see in the ordering behavior for Q4 seems to indicate that our customers are preparing already now for avoiding a year end excess inventory as their outlook is dampened by the current economic uncertainties, especially in Western Europe. Melexis growth path for 2013 is, however, favorably influenced by new product introductions, the vast majority of which were launched this year or last. Melexis' innovative power which contributes to the green economy continues to gain traction and should amply compensate a more moderate growth of the rest of the product mix. Hence it equally fuels our company's long-term structural growth."

Outlook

Melexis expects sales in the fourth quarter of 2012 to decrease slightly compared with the previous quarter.

For FY 2013, Melexis expects to achieve mid to high single digit growth in sales, taking into account a EUR/USD exchange rate of 1.30.

Financial Calendar

• Publication FY 2012 Results: February 6, 2013

The company's results will be discussed in a conference call on Wednesday, October 17th, 2012 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=185440 Conference ID: 923552.

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.

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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: 923552.

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 Profit & Loss

CONFORM IAS		Quarter ended	Quarter ended	Nine months ended	Nine months ended	Year ended
in k EUR		30/09/2012	30/09/2011	30/09/2012	30/09/2011	31/12/2011 audited
Sales		64,383	56,762	184,944	173,354	230,661
Gross Margin	Cost of sales	-34,252 30,131	-30,473 26,288	-98,472 86,472	-93,305 80,049	-122,452 108,210
	R&D G&A	-9,822 -3,513	-8,601 -3,046	-28,751 -9,924	-25,740 -9,119	-34,342 -12,540
	Selling Other operating result	-1,718	-1,634	-5,650	-5,172	-6,882
Operating result	Other expenses (net)	15,078 -354	13,008 -19	42,147 -915	40,017 -1,189	54,446 -1,166
Income before taxes	Income taxes	14,724 -2,421	12,989 -2,349	41,232 -6,176	38,828 -5,893	53,280 -7,386
Net income		12,304	10,640	35,056	32,935	45,894
Net income per share in EUR		0.30	0.25	0.84	0.76	1.06

Consolidated Balance Sheet

CONFORM IAS in k EUR	Nine months ended 30/09/2012	Nine months ended 30/09/2011	Year ended 31/12/2011 audited
Current Assets :
Cash and cash equivalents	38,496	36,750	17,806
Current investments	4,160	4,009	4,605
A/R Trade	37,767	35,489	37,802
A/R from related parties	5,157	870	723
Advance related parties
Other current assets	10,721	5,403	7,143
Inventories	35,291	35,516	36,943
Total current assets	131,592	118,038	105,022
Non current assets :
Costs of incorporation
Property, plant and equipment	54,898	51,174	51,354
Financial assets	30	30	30
Intangible fixed assets	2,208	1,982	1,943
A/R directors
Other non-current assets	6,166	5,537	4,933
Deferred tax assets	15,054	15,471	14,821
Total non current assets	78,356	74,194	73,081
Total assets	209,948	192,232	178,103

CONFORM IAS	Nine months ended	Nine months ended	Year ended
in k EUR	30/09/2012	30/09/2011	31/12/2011 audited
Liabilities and shareholders Equity
Current liabilities :
Bank loans and overdrafts
Derivative financial instruments	1,262	1,014	964
Current portion of LT debt	34,648	4,648	4,648
A/P trade	9,678	8,141	8,163
Affiliated companies	4,422	4,824	5,117
Accrued expenses, payroll and taxes	11,820	10,527	8,566
Other current liabilities	3,065	1,609	3,063
Deferred income	456	573	625
Total current liabilities	65,351	31,337	31,146
Non current liabilities :
LT debt less current portion	2,355	37,002	36,976
Deferred tax liabilities		382
Other non-current liabilities	3,062	2,811	2,861
Total non current liabilities	5,416	40,195	39,837
Shareholders' equity :
Shareholders' capital	565	565	565
Share premium
Treasury shares	-3,796	-28,711	-31,760
Revaluation reserve Hedge	-614	-540	-494
Revaluation reserve Fair value	206	-90	512
Legal reserve	57	57	57
Retained earnings	107,769	116,535	92,217
Current period's profit	35,056	32,935	45,894
Cumulative translation adjustment	-71	-60	120
Equity attributable to company owners	139,171	120,690	107,110
Non controlling interests	10	10	10
Total shareholders equity	139,181	120,700	107,121
Total liabilities, shareholders' equity	209,948	192,232	178,103
and minority interests

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Consolidated Statements of Cash Flow

CONFORM IAS/IFRS in k EUR	Quarter ended 30/09/2012	Quarter ended 30/09/2011	Nine months ended 30/09/2012
Cash flow from operating activities
Net income	12,304	10,640	35,056
Adjustments for :	3,406	4,074	11,777
Operating activities Deferred taxes	-61	-53	-233
Capital grants	246	134	418
	3,334	3,123	10,763
Depreciation and amortisation	807	1,425	1,842
Unrealized exchange results
Financial result	-920	-555	-1,012
Operating profit before working capital changes :	15,710	14,714	46,833
A/R, Trade	611	-4,728	29
A/R, affiliates	2,330	8,424	-4,435
Other current assets	872	-1,521	-4,438
Other non current assets	-488	-443	-1,233
Inventories	-1,257	515	-168
A/P	893	219	1,535
A/P affiliates	-142	-204	-695
Accrued expenses	1,065	1,829	5,854
Other current liabilities	136	583	2
Other non current liabilities	-49	143	330
Interest paid	-506	-465	-1,605
Income tax	-664	-1,195	-2,618
Cash flow from operating activities	18,511	17,871	39,392
Cash flow from investing activities
Acquisition of subsidiary, net of cash acquired
Financial fixed assets
Purchase of PPE and intangible assets (netted)	-4,108	-2,476	-12,799
Interest received	209	38	649
Investments/proceeds/ from current investments	-639	1,917	445
(incl. financial instruments)
Cash provided from investing activities	-4,538	-522	-11,705
Cash flows from financing activities
Payment to acquire own shares	-573	-2,223	-2,378
Proceeds/Repayment of long-and short-term debt	-28	-3,029	-4,621
Proceeds/Repayment of bank loans and overdrafts
Proceeds from (repayment of) related party financing
Dividend payment
Capital Decrease
Non controlling interests
Cash provided from financing activities	0	-5,252	-6,999
CTA	-14	1	2
Increase/decrease in cash and cash equivalents	13,959	12,099	20,689
Cash at beginning of the period	25,137	24,651	17,806
Cash at the end of the period	38,496	36,750	38,496

Sales per Geography Q3 2012

Turnover per Business Unit

(in k EUR)	Q3/12	Q2/12	% CHANGE (Q-O-Q)
Sensors	38,542	36,919	4%
Wireless	3,651	3,850	-5%
Actuators	17,586	16,956	4%
Opto	3,889	3,618	7%
Other	715	730	-2%
TOTAL	64,383	62,074	4%

(in k EUR)	Q3/12	Q3/11	% CHANGE (Y-O-Y)
Sensors	38,542	32,484	19%
Wireless	3,651	3,617	1%
Actuators	17,586	16,400	7%
Opto	3,889	3,605	8%
Other	715	656	9%
TOTAL	64,383	56,762	13%

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(in k EUR)	Nine months/12	Nine months/11	% CHANGE (Y-O-Y)
Sensors	108,079	98,576	10%
Wireless	11,156	10,736	4%
Actuators	52,202	49,023	6%
Opto	11,349	12,767	-11%
Other	2,158	2,252	-4%
TOTAL	184,944	173,354	7%

We Engineer The Sustainable Future