Melexis N.V. — Interim / Quarterly Report 2012

Aug 1, 2012

Press release : Melexis first time exceeds 60 million euro quarterly sales Melexis Q2 2012 results

Intermediate declaration by the Board of Directors.

Ieper, Belgium – August 1st, 2012, 07.00 hrs CET

Half-year sales were 120.6 million EUR, an increase of 3% compared to the first half year 2011. Gross margin was 56.3 million EUR, an increase of 5% compared to the same period last year. The operating result was 27.1 million EUR, compared to 27.0 million EUR the same half year of 2011. Net income was 22.8 million EUR, compared to 22.3 million EUR in the first half year 2011.

Sales for the second quarter were 62.1 million EUR, an increase of 8% compared to the same quarter of the previous year and an increase of 6% versus the previous quarter. The EUR/USD exchange rate evolution had a positive impact of 5% compared to the same quarter of last year and had no impact compared to the previous quarter. Gross margin was 29.1 million EUR, an increase of 9% compared to the same quarter of last year and increase of 7% versus the previous quarter. The operating result was 13.9 million EUR, compared to 12.8 million EUR in the same quarter of 2011 and 13.2 million EUR in the previous quarter. Net income was 11.8 million EUR, 29 cent per share, up from 25 cent per share in the second quarter of 2011 and 25 cent in the previous quarter. R&D expenses were at 16% of sales, Selling was at 3.5% and G&A was at 5% of sales.

Melexis purchased 28.315 shares during the second quarter of 2012 at an average price of 11.93 EUR. As a result, the total number of shares at the end of the second quarter of 2012 was 306.005, representing 0.76% of shares outstanding.

Dividend

The Board of Directors decided to pay out an interim dividend of 0,65 EUR gross per share. The Melexis shares will start trading ex coupon on October 22, 2012 (opening of the market). The record date is October 24, 2012 (closing of the market) and the dividend will be payable as from October 25, 2012.

Outlook

We anticipate sales in the third quarter of 2012 to increase by 4-5% compared to the second quarter. For 2012, taking into account the current EUR/USD exchange rate, we expect high single digit growth in sales and our gross profit and operating margin as percentage of sales to be around the same level as 2011.

Françoise Chombar, CEO of Melexis comments:

"While demand in Europe has been pretty stable, we noticed a boost of our sales in Asia, with a traction coming mainly from automotive. The healthy geographical spread of our customer base clearly represents an asset to Melexis."

Karen van Griensven, CFO of Melexis adds:

"Earnings per share increased year on year by 16% in the second quarter. This is the combined result of the improved financial performance and the cancellation of own shares. Melexis will continue to reward its shareholders by distributing dividends and by performing share buy backs."

Financial Calendar

• Publication Q3 2012 Results: October 17, 2012
• Publication FY 2012 Results: February 6, 2013

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The company's results will be discussed in a conference call on Wednesday, August 1st, 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=184470 Conference ID: 919749.

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: 919749.

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.

We Engineer The Sustainable Future Melexis Financial Press Release Regulated Information

CONFORM IAS	Quarter ended	Quarter ended		Half Year ended Half Year ended	Year ended
	30/06/2012	30/06/2011	30/06/2012	30/06/2011	31/12/2011
in k EUR					audited
Sales	62,074	57,654	120,561	116,592	230,661
Cost of sales	-32,958	-30,995	-64,220	-62,832	-122,452
Gross Margin	29,116	26,659	56,341	53,760	108,210
R&D	-9,810	-9,009	-18,929	-17,139	-34,342
G&A	-3,224	-3,076	-6,411	-6,074	-12,540
Selling	-2,173	-1,772	-3,932	-3,538	-6,882
Other operating result
Operating result	13,909	12,802	27,069	27,009	54,446
Other expenses (net)	-160	-289	-561	-1,170	-1,166
Income before taxes	13,749	12,513	26,507	25,839	53,280
Income taxes	-1,993	-1,794	-3,755	-3,544	-7,386
Net income	11,755	10,719	22,752	22,295	45,894
Net income per share in EUR	0.29	0.25	0.54	0.52	1.06

Consolidated Balance Sheet

CONFORM IAS		Half Year ended Half Year ended	Year ended
in k EUR	30/06/2012	30/06/2011	31/12/2011 audited
Current Assets :
Cash and cash equivalents	25,137	24,651	17,806
Current investments	3,521	5,925	4,605
A/R Trade	38,381	30,760	37,802
A/R from related parties	7,487	9,294	723
Advance related parties
Other current assets	11,119	6,049	7,143
Inventories	34,405	36,139	36,943
Total current assets	120,050	112,818	105,022
Non current assets :
Costs of incorporation
Property, plant and equipment	54,287	52,014	51,354
Financial assets	30	30	30
Intangible fixed assets	1,873	1,676	1,943
A/R directors
Other non-current assets	5,678	5,095	4,933
Deferred tax assets	14,993	15,418	14,821
Total non current assets	76,861	74,233	73,081
Total assets	196,911	187,051	178,103

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Consolidated Statements of Cash Flow

(in k EUR) audited Cash flow from operating activities 11,755 22,752 22,295 45,894 Net income Adjustments for : Operating activities 4,188 8,371 6,893 15,100 -188 -172 -183 414 Deferred taxes 36 172 681 1,342 Capital grants 3,731 7,429 6,251 11,948 Depreciation and amortisation 162 1,035 -170 560 Unrealized exchange results 447 -92 314 836 Financial result Operating profit before working capital changes : 15,944 31,123 29,188 60,994 -4,915 -583 -2,827 -9,848 A/R, Trade -6,868 -6,764 -498 8,073 A/R, affiliates -5,309 -5,310 1,694 -1,331 Other current assets -239 -745 -750 -589 Other non current assets 1,097 1,089 2,572 2,340 Inventories 2,466 642 645 855 A/P -1,092 -553 -1,576 -1,487 A/P affiliates 3,633 4,789 3,588 5,549 Accrued expenses -239 -134 -681 1,347 Other current liabilities 499 380 -882 -1,069 Other non current liabilities -566 -1,099 -1,250 -2,428 Interest paid -1,221 -1,954 -854 -4,195 Income tax Cash flow from operating activities 3,191 20,882 28,369 58,212 Cash flow from investing activities Acquisition of subsidiary, net of cash acquired Financial fixed assets -3,179 -8,691 -8,927 -14,613 Purchase of PPE and intangible assets (netted) 249 440 911 1,189 Interest received 1,409 1,084 -196 1,124 Investments/proceeds/ from current investments (incl. financial instruments) Cash provided from investing activities -1,521 -7,167 -8,212 -12,300 Cash flows from financing activities -234 -1,805 -4,603 -9,874 Payment to acquire own shares -2,028 -4,593 -12,082 -15,139 Proceeds/Repayment of long-and short-term debt Proceeds/Repayment of bank loans and overdrafts Proceeds from (repayment of) related party financing Proceeds from (repayment of) A/P to directors -24,318 Dividend payment Capital Decrease Non controlling interests Cash provided from financing activities -2,262 -6,399 -16,685 -49,331 25 15 46 CTA -568 7,331 3,471 -3,374 Increase/decrease in cash and cash equivalents Cash at beginning of the period 25,705 17,806 21,180 21,180 Cash at the end of the period 25,137 25,137 24,651 17,806	CONFORM IAS/IFRS	Quarter ended		Half Year ended Half Year ended	Year ended
		30/06/2012	30/06/2012	30/06/2011	31/12/2011

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Sales per Geography H1 2012

Turnover per Business Unit

(in k EUR)	Q2/12	Q1/12	% CHANGE (Q-O-Q)
Sensors	36,919	32,618	13%
Wireless	3,850	3,655	5%
Actuators	16,956	17,660	-4%
Opto	3,618	3,842	-6%
Other	730	713	2%
TOTAL	62,074	58,487	6%

(in k EUR)	Q2/12	Q2/11	% CHANGE (Y-O-Y)
Sensors	36,919	32,513	14%
Wireless	3,850	3,504	10%
Actuators	16,956	16,396	3%
Opto	3,618	4,651	-22%
Other	730	591	23%
TOTAL	62,074	57,654	8%

We Engineer The Sustainable Future

(in k EUR)	HY/12	HY/11	% CHANGE (Y-O-Y)
Sensors	70,421	66,305	6%
Wireless	6,620	7,066	-6%
Actuators	34,617	32,683	6%
Opto	7,460	9,197	-19%
Other	1,443	1,340	8%
TOTAL	120,561	116,592	3%

The Statutory auditor of Melexis NV, BDO Bedrijfsrevisoren Burg. Ven. CVBA, has substantially completed his limited review procedures on the interim consolidated statement of financial position of Melexis NV as of 30 June, 2012 and the related interim consolidated statements of comprehensive income for the six-month period then ended, with a balance sheet total of 196.911 KEUR and a benefit of the period of 22.752 KEUR, as included in the press release.

This examination has been conducted in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

The Statutory auditor has confirmed that his limited review procedures, have not revealed material adjustments, which would have to be made to the financial information as identified above.

Zaventem, 30 July, 2012

BDO Réviseurs d'Entreprises Soc. Civ. SCRL Statutory auditor Represented by Gert Claes