Melexis N.V. — Interim / Quarterly Report 2013

Jul 31, 2013

Press release:

Melexis Q2 2013 results – Growth Confirmed

Intermediate declaration by the Board of Directors.

Ieper, Belgium – July 31st, 2013, 07.00 hrs CET

Half-year sales were 128.9 million EUR, an increase of 7% compared to the first half year 2012. Gross margin was 59.3 million EUR, an increase of 5% compared to the same period last year. The operating result was 28.1 million EUR, compared to 27.1 million EUR in the same half year of 2012. Net income was 24.3 million EUR, compared to 22.8 million EUR in the first half year 2012.

Sales for the second quarter of 2013 were 67.1 million EUR, an increase of 8% compared to the same quarter of the previous year and an increase of 8% versus the previous quarter. The EUR/USD exchange rate evolution had a positive impact of 1% compared to the previous quarter and had no impact compared to the same quarter of the previous year.

Gross margin was 31.1 million EUR, an increase of 7% compared to the same quarter of last year and an increase of 10% versus the previous quarter.

R&D expenses were at 15.1% of sales, Selling was at 2.7% and G&A was at 5.7% of sales. The operating result was 15.3 million EUR, compared to 13.9 million EUR in the same quarter of 2012 and 12.7 million EUR in the previous quarter.

Net income was 13.1 million EUR, 33 cent per share, up from 29 cent per share in the second quarter of 2012 and 28 cent in the previous quarter.

Dividend

The Board of Directors decided to pay out an interim dividend of 0,70 EUR gross per share. The Melexis shares will start trading ex coupon on October 21, 2013 (opening of the market). The record date is October 23, 2013 (closing of the market) and the dividend will be payable as from October 24, 2013.

Outlook

We expect sales in the third quarter of 2013 to be slightly above the level of the second quarter. For FY 2013, Melexis expects to achieve mid to high single digit growth in sales, a gross profit margin above 45% and an operating margin above 21%, taking into account a EUR/USD exchange rate of 1.30.

Françoise Chombar, CEO of Melexis comments:

"Business in the second quarter of 2013 was pretty strong and creates confidence for the second half of the year. According to Strategy Analytics, Melexis now occupies the 5th place in the world of automotive sensors. A daunting accomplishment, if I may dare to say so. Indeed, it is worth mentioning that Melexis is only 24 years' of age whereas its top 10 companions are all at least double that. The Melexis vision of engineering the sustainable future coupled with the dedication, engagement and creative spirit of the Melexis people clearly convinces our customers to value the Melexis contribution to their business."

Karen van Griensven, CFO of Melexis comments:

"The Board of Directors decided to increase the interim dividend with almost 8% compared to the previous year. In the last 10 years Melexis has been able to generate substantial shareholder value. Shareholders who reinvested their received dividends in the company, can look back on a return of more than 13% per year."

The statutory auditors BDO Bedrijfsrevisoren Burg. Ven. CVBA, have confirmed that their review procedures, which have been substantially completed, have not revealed material adjustments which would have to be made to the accounting information included in this press release.

We Engineer The Sustainable Future Melexis Financial Press Release Regulated Information

Financial Calendar

• Publication Q3 2013 Results: October 16, 2013
• Publication FY 2013 Results: February 5, 2014

The company's results will be discussed in a conference call on Wednesday, July 31st, 2013 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=188073 Conference ID: 934800.

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: 934800.

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 IFRS	Quarter ended	Quarter ended	Half Year ended	Half Year ended	Year ended
in k EUR	30/06/2013	30/06/2012	30/06/2013	30/06/2012	31/12/2012 audited
Sales Cost of sales	67,088 -35,989	62,074 -32,958	128,945 -69,674	120,561 -64,220	247,041 -131,565
Gross Margin	31,099	29,116	59,272	56,341	115,476
R&D	-10,124	-9,810	-20,438	-18,929	-38,869
G&A	-3,795	-3,224	-7,281	-6,411	-13,149
Selling	-1,831	-2,173	-3,479	-3,932	-7,602
Other operating result
Operating result	15,349	13,909	28,074	27,069	55,856
Other expenses (net)	-333	-160	-675	-561	-925
Income before taxes	15,016	13,749	27,399	26,507	54,931
Income taxes	-1,868	-1,993	-3,054	-3,755	-3,402
Net income	13,148	11,755	24,345	22,752	51,529
Net income per share in EUR	0.33	0.29	0.60	0.54	1.25

Consolidated Balance Sheet

CONFORM IFRS	Half Year ended 30/06/2013	Half Year ended 30/06/2012	Year ended 31/12/2012
in k EUR			audited
Current Assets :
Cash and cash equivalents	16,426	25,137	21,317
Current investments	4,698	3,521	3,928
A/R Trade	39,387	38,381	35,359
A/R from related parties	9,254	7,487	636
Advance related parties
Assets for current tax	4,641	4,219	5,467
Other current assets	6,978	6,900	8,002
Inventories	38,625	34,405	38,359
Total current assets	120,009	120,050	113,067
Non current assets :
Costs of incorporation
Property, plant and equipment	65,540	54,287	60,004
Financial assets	30	30	30
Intangible fixed assets	1,691	1,873	2,113
A/R directors
Other non-current assets	5,336	5,678	5,551
Deferred tax assets	14,234	14,993	14,805
Total non current assets	86,831	76,861	82,503
Total assets	206,840	196,911	195,570

We Engineer The Sustainable Future

CONFORM IFRS	Half Year ended	Half Year ended	Year ended
	30/06/2013	30/06/2012	31/12/2012
in k EUR Liabilities and shareholders Equity			audited
Current liabilities :
Bank loans and overdrafts
Derivative financial instruments	869	1,401	1,103
Current portion of LT debt	4,147	34,648	34,648
A/P trade	11,523	8,852	12,329
Affiliated companies	6,160	4,564	4,680
Accrued taxes	2,758	4,860	3,572
Accrued expenses and payroll	5,020	6,523	4,263
Other current liabilities	1,120	2,930	1,374
Deferred income	749	528	581
Total current liabilities	32,346	64,306	62,550
Non current liabilities :
LT debt less current portion	18,229	2,383	2,328
Deferred tax liabilities
Other non-current liabilities	1,583	2,900	1,415
Total non current liabilities	19,812	5,283	3,743
Shareholders' equity :
Shareholders' capital	565	565	565
Share premium
Treasury shares	-3,818	-3,224	-3,818
Revaluation reserve Hedge	-240	-495	-608
Revaluation reserve Fair value	865	-285	73
Legal reserve	57	57	57
Retained earnings	133,262	107,769	81,733
Current period's profit	24,346	22,752	51,529
Cumulative translation adjustment	-365	174	-264
Equity attributable to company owners	154,672	127,312	129,267
Non controlling interests	10	10	10
Total shareholders equity	154,682	127,323	129,277
Total liabilities, shareholders' equity	206,840	196,911	195,570
and minority interests

Consolidated Statements of Cash Flow

CONFORM IFRS	Quarter ended	Half Year ended	Half Year ended	Year ended
(in k EUR)	30/06/2013	30/06/2013	30/06/2012	31/12/2012 audited
Cash flow from operating activities
Net income	13,148	24,345	22,752	51,529
Adjustments for :
Operating activities	4,789 666	8,474 740	8,371 -172	16,787 16
Deferred taxes	340	520	172	719
Capital grants Depreciation and amortisation	3,658	7,026	7,429	15,210
Unrealized exchange results	-642	-297	1,035	1,124
Financial result	767	485	-92	-282
Operating profit before working capital changes	17,937	32,819	31,123	68,316
A/R, Trade	1,541	-4,080	-583	2,346
A/R, affiliates	2,363	-8,618	-6,764	86
Other current assets	-546	2,646	-5,310	-8,165
Other non current assets	573	213	-745	-617
Inventories	-276	-1,112	1,089	-4,497
A/P	-634	-1,273	642	4,173
A/P affiliates	1,018	1,950	-553	-436
Accrued expenses	1,115	1,811	4,789	2,904
Other current liabilities	-255	-250	-134	-1,690
Other non current liabilities	69	-66	380	-1,351
Interest paid	-170	-323	-1,099	-2,000
Income tax	-1,101	-1,860	-1,954	-3,612
Cash flow from operating activities	21,634	21,858	20,882	55,456
Cash flow from investing activities
Acquisition of subsidiary, net of cash acquired
Financial fixed assets
Purchase of PPE and intangible assets (netted)	-5,712	-11,522	-8,691	-20,749
Interest received	59	148	440	1,220
Investments/proceeds/ from current investments	-16	-770	1,084	677
(incl. financial instruments)
Cash provided from investing activities	-5,669	-12,143	-7,167	-18,851
Cash flows from financing activities
Payment to acquire own shares	0	0	-1,805	-2,399
Proceeds/Repayment of long-and short-term debt	-16,028	-14,599	-4,593	-4,648
Proceeds/Repayment of bank loans and overdrafts
Proceeds from (repayment of) related party financing
Dividend payment				-26,036
Capital Decrease
Non controlling interests
Cash provided from financing activities	-16,028	-14,599	-6,399	-33,083
CTA	-7	-6	15	-11
Increase/decrease in cash and cash equivalents	-70	-4,891	7,331	3,510
Cash at beginning of the period	16,496	21,317	17,806	17,806
Cash at the end of the period	16,426	16,426	25,137	21,317

We Engineer The Sustainable Future Melexis Financial Press Release Regulated Information

Sales per Business Unit

(in k EUR)	Q2/13	Q2/12	% CHANGE (Y-O-Y)
Sensors	38,340	34,445	11%
Wireless	4,431	3,850	15%
Actuators	19,996	19,431	3%
Opto	3,633	3,618	0%
Other	688	730	-6%
TOTAL	67,088	62,074	8%

(in k EUR)	Q2/13	Q1/13	% CHANGE (Q-O-Q)
Sensors	38,340	35,896	7%
Wireless	4,431	3,922	13%
Actuators	19,996	18,616	7%
Opto	3,633	2,872	26%
Other	688	551	25%
TOTAL	67,088	61,857	8%

(in k EUR)	HY/13	HY/12	% CHANGE (Y-O-Y)
Sensors	74,236	65,435	13%
Wireless	8,353	7,505	11%
Actuators	38,612	38,718	0%
Opto	6,505	7,460	-13%
Other	1,239	1,443	-14%
TOTAL	128,945	120,561	7%

Sales per Geography

	Q2/13	Q2/12	Q1/13	HY 2013	HY 2012
APAC Asia Pacific	38%	39%	39%	39%	37%
EMEA Europe - Middle-East - Africa	45%	43%	44%	44%	44%
NALA North America - Latin America	17%	18%	17%	17%	19%
TOTAL	100%	100%	100%	100%	100%

Melexis Shareholder Return 2002 - 2013