Slide 1: Presentation results Q3 2019
Presentation results Q3 2019 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 1
Slide 2: What do we do?
What do we do? We create innovative micro-electronic solutions for the best imaginable future The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 2
Slide 3: Process flow
Process flow Chip design Wafer probe Final test 1 2 3 4 5 Idea Customer Wafer fab Assembly The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 3
Slide 4: presentation is ALL Rights ALL The content
The content The content of this of this presentation is presentation is CONFIDENTIAL CONFIDENTIAL & PROPRIETARY. ALL RightsALL & PROPRIETARY. Reserved. Rights Reserved. 4
Slide 5: Melexis strategy
Melexis strategy Leadership Leadershipinin Focus Focuson on sensing innovation sensingandand innovationinin driving drivingsolutions solutions Organic Organicgrowth, growth, automotive automotiveand and totoour selective selective our adjacent adjacent customers’ acquisitions acquisitions customers’
Slide 6: Common denominator: sensing & driving is everywhere
Common denominator: sensing & driving is everywhere Automotive Home Motorcycles and e-bikes Consumer Industry Healthcare The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 6
Slide 7: Melexis supplied > 1.4 billion ICs worldwide in 2018
Melexis supplied > 1.4 billion ICs worldwide in 2018 • Magnetic position sensors • Pressure sensors • Inductive position sensors • Tire monitoring sensors • Current sensors • Temperature sensors • Latch & switch • Optical sensors • Embedded drivers • Sensor interfaces • Smart drivers • Embedded ligh
Slide 8: 11 chips in every new car
11 chips in every new car Applications containing Melexis ICs Disclaimer: Please note this list is not exhaustive and only includes some of the most common applications containing Melexis ICs. The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 8
Slide 9: Over 1500 people on 3 continents
Over 1500 people on 3 continents Sales & Applications Belgium – Ieper, Tessenderlo Greater China – Shanghai France – Grasse, Paris Germany – Erfurt, Dresden Japan – Yokohama USA – Nashua, Detroit, San Jose South Korea – Seoul Switzerland - Bevaix Manufacturing Belgium – Ieper Bulgaria – Sofia France
Slide 10: Melexis vs Automotive Trends
Melexis vs Automotive Trends The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 10
Slide 11: Melexis vs automotive trends
Melexis vs automotive trends Zero emissions Powertrain systems Electrification (xHEV & xEV) Zero traffic fatalities Chassis, body & ADAS safety (assisted & autonomous drive) systems User experience Personalization (customization) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Ri
Slide 12: Powertrain Systems
Powertrain Systems Levels of Electrification The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 12
Slide 13: Powertrain Systems
Powertrain Systems Electrification – Segmentation – Market Split Electrification ICE inside Source: Strategy Analytics and Melexis estimates The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 13
Slide 14: Powertrain Systems
Internal Combustion Engine (ICE + uHEV) 48 Volt Mild Hybrid (mHEV) Powertrain Systems Full Hybrid (fHEV) - Plug-In Hybrid (pHEV) Electrical Vehicle (BEV – FCEV) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 14
Slide 15: Powertrain Systems
Powertrain Systems The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 15 Source: Strategy Analytics and Melexis estimates
Slide 16: Chassis - Body - Safety Systems
Chassis - Body - Safety Systems Chassis Body Safety Breaking – Steering – Suspension Lighting – HVAC - Others (Passive) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 16
Slide 17: Chassis – Body – Safety Systems
Chassis – Body – Safety Systems The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 17 Source: Strategy Analytics and Melexis estimates
Slide 18: Melexis in automotive
Melexis in automotive The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 18 Source: Strategy Analytics and Melexis estimates
Slide 19: BMW 530e
BMW 530e The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 19
Slide 20: Melexis beyond automotive
Melexis beyond automotive Sensors & drivers for similar challenges • White goods – Focus on CO2 • Robotics – Focus on autonomy • Motorcycles and e-bikes • Thermal information – People detection • Industry 4.0 – Closed loop control • Environmental imaging • Drones • Industrial position sensing • Powe
Slide 21: Milestones
Milestones The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 21
Slide 22: Our market position
Our market position Magnetic position Automotive sensors Automotive sensors Magnetic sensors semiconductors Latch & switch Ambient lighting #14 #3 #3 #1 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 22 Source: Strategy Analytics 2018 and Melexis estimates
Slide 23: Melexis ranking 14th in automotive semiconductor
Melexis ranking 14th in automotive semiconductor Automotive semiconductor sales 2018 (mln. USD) 5 year CAGR (2013-2018) 5000 60% 4500 50% 4000 3500 40% 3000 30% 2500 2000 20% +14% 1500 10% 1000 607 0% 500 0 -10% ST Sanken Rohm Cypress Qualcomm Vishay NXP Nexperia Renesas ADI Toshiba Micron Melexis I
Slide 24: Melexis ranking 3rd in automotive sensors
Melexis ranking 3rd in automotive sensors Automotive sensor sales 2018 (mln. USD) 5 year CAGR (2013-2018) 1000 18% 900 +17% 16% 800 14% 700 12% 600 462 10% 500 8% 400 300 6% 200 4% 100 2% 0 0% NXP Micronas ADI Melexis Bosch Infineon ON Semi Allegro TI mln. %change USD y-o-y 1 2 3 4 5 6 7 8 9 The con
Slide 25: Evolution financials 2000-2019
3Q19 3Q19 3Q19 1Q19 1Q19 1Q19 3Q18 3Q18 3Q18 1Q18 1Q18 1Q18 3Q17 3Q17 3Q17 1Q17 1Q17 1Q17 3Q16 3Q16 3Q16 1Q16 1Q16 1Q16 3Q15 3Q15 3Q15 1Q15 1Q15 1Q15 3Q14 3Q14 3Q14 1Q14 1Q14 1Q14 3Q13 3Q13 3Q13 1Q13 1Q13 1Q13 3Q12 3Q12 3Q12 1Q12 1Q12 1Q12 3Q11 3Q11 3Q11 1Q11 1Q11 1Q11 3Q10 3Q10 3Q10 1Q10 1Q10 1Q10
Slide 26: % ASSP sales % automotive sales
% ASSP sales % automotive sales 70% 95% 65% 65% 91% 90% 60% 85% 55% 80% 50% 75% 45% 70% 40% 35% 65% 30% 60% 2005 2007 2009 2011 2013 2015 2017 2019 2005 2007 2009 2011 2013 2015 2017 2019 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 26
Slide 27: Q3 2019 results at a glance
Q3 2019 results at a glance Sales Gross margin Operating result 123.3m EUR 40.0% 14.7% 49.3m EUR 18.2m EUR -16% Y-o-Y -28% Y-o-Y -51% Y-o-Y Net result Oper. cash flow Net debt 0.38 EPS (before wcap change) 1.9m EUR 15.4m EUR 32.2m EUR -21% Y-o-Y -49% Y-o-Y Outlook Melexis expects sales in the fourth
Slide 28: Profit & loss
Profit & loss Q3 2019 versus Q3 2018 versus Q2 2019 P&L account Q3 2019 % of Sales Q3 2018 % of Sales Q2 2019 % of Sales (in million EUR) Sales 123.3 100.0% 146.7 100.0% 120.0 100.0% Cost of goods sold -74.0 -60.0% -78.6 -53.6% -70.3 -58.6% Gross margin 49.3 40.0% 68.1 46.4% 49.8 41.4% R&D -19.8 -16
Slide 29: 9M 2019 results at a glance
9M 2019 results at a glance Sales Gross margin Operating result 359.8m EUR 40.5% 14.5% 145.8m EUR 52.3m EUR -16% Y-o-Y -26% Y-o-Y -51% Y-o-Y Net result Oper. cash flow Net debt 1.11 EPS (before wcap change) 1.9m EUR 44.9m EUR 92.7m EUR -21% Y-o-Y -48% Y-o-Y Outlook Melexis expects sales in the fourt
Slide 30: Profit & loss
Profit & loss 9M 2019 versus 9M 2018 P&L account 9M 2019 % of Sales 9M 2018 % of Sales (in million EUR) Sales 359.8 100.0% 427.7 100.0% Cost of goods sold -214.0 -59.5% -230.7 -53.9% Gross margin 145.8 40.5% 197.0 46.1% R&D -59.1 -16.4% -57.2 -13.4% G&A -23.0 -6.4% -22.1 -5.2% Selling -11.4 -3.2% -1
Slide 31: Balance sheet
Balance sheet Q3 2019 versus Q3 2018 versus Q2 2019 Balance Sheet Q3 2019 Q3 2018 Q2 2019 Total assets 453.9 435.1 436.7 Current assets Cash 60.2 36.9 31.3 Inventory 128.0 125.9 128.9 A/R Trade 69.7 78.8 68.5 Non-current assets 182.2 180.3 185.5 Shareholders' equity 336.1 349.4 319.8 Interest bearin
Slide 32: Dividend yield Based on average share price
Dividend yield Gross dividend per share (EUR) 2003 0.50 Based on average share price (*) 2004 1.00 2005 0.50 EUR 2006 0.50 2.50 9% 2007 0.60 8% 2008 0.60 2.00 7% 2009 0.00 6% 2010 0.30 1.50 5% 2011 0.60 4% 2012 0.65 1.00 3% 2013 0.70 2% 2014 1.00 0.50 1% 2015 1.90 0.00 0% 2016 2.00 2017 2.10 2018 2.
Slide 33: Shareholders structure & shareholder return
Shareholders structure & shareholder return Shareholder structure on Shareholder Return 30 Sep 2019 2002-2019 160 Return investment 2002-2019 = 16% per year 140 120 100 45.57% Xtrion Treasury Shares 80 53.58% Public 60 40 20 0.86% 0 2002 2004 2006 2008 2010 2012 2014 2016 2018 Share price Total retu
Slide 34: Some recent products – BU Sense & Drive
Some recent products – BU Sense & Drive The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 34
Slide 35: Some recent products - BU Sense & Light
Some recent products - BU Sense & Light The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 35
Slide 36: Melexis Investor Relations
Melexis Investor Relations Karen van Griensven CFO Geert Reynders investor@melexis.com Investor Relations +32 (0)13 67 07 79 Joren Vanvelk Financial Analyst Valerie Kerfs IR Assistant The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 36