Melexis Nv · EURONEXT:MELE
Melexis Nv — Q3 2022 Earnings Presentation
43 slides from Melexis Nv's earnings presentation, Oct 26, 2022
Slide 1: Presentation results Q3 2022
Presentation results Q3 2022 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: 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. 3
Slide 4: 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. 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: Approximately 1,700 people on 3 continents
Approximately 1,700 people on 3 continents Sales & Applications Belgium – Ieper, Tessenderlo Greater China – Shanghai, Shenzhen France – Grasse, Paris Germany – Erfurt, Dresden Japan – Yokohama USA – Detroit, San Jose South Korea – Seoul Switzerland - Bevaix Manufacturing Belgium – Ieper Bulgaria –
Slide 7: 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. 7
Slide 8: Importance to stakeholders
Sustainable Development Goals (SDGs) Importance to stakeholders Impact on Melexis 8
Slide 9: Melexis supplied > 1.7 billion ICs worldwide in 2021
Melexis supplied > 1.7 billion ICs worldwide in 2021 • 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 10: MELEXIS ICs SHAPE THE FUTURE
MELEXIS ICs SHAPE THE FUTURE The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 10
Slide 11: MELEXIS ICs SHAPE THE FUTURE
MELEXIS ICs MELEXIS IcsSHAPE SHAPETHE THEFUTURE FUTURE PLANET ELECTRIFICATION MICRO MOBILITY THERMAL MANAGEMENT The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 11
Slide 12: MELEXIS ICs SHAPE THE FUTURE
MELEXIS ICs SHAPE THE FUTURE PEOPLE USER EXPERIENCE SAFETY HEALTH The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 12
Slide 13: 18 chips in every new car
18 chips in every new car * * Melexis shipped on average 18 ICs per car produced worldwide 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 CONFID
Slide 14: Automotive - From 10 to 20 (ICs/car) – How?
Automotive - From 10 to 20 (ICs/car) – How? 14 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved.
Slide 15: Powertrain Systems
Internal Combustion Engine (ICE + µHEV) 48 Volt Mild Hybrid (mHEV) Powertrain Systems Full Hybrid (fHEV) - Plug-In Hybrid (pHEV) Electric Vehicle (BEV – FCEV) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 15
Slide 16: Global vehicle production (million units)
Global vehicle production (million units) Electrification – Segmentation – Market Split Electrification ICE inside The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 16 Source: IHS and Melexis estimates, updated Feb 01, 2022
Slide 17: Automotive - From 10 to 20 (ICs/car)
Automotive - From 10 to 20 (ICs/car) Internal Combustion Start/stop Engine (µHEV) (ICE) 48V mild hybrid (mHEV) Full hybrid (fHEV) Plug-in hybrid (pHEV) Electric vehicle (BEV - FCEV) 17 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved.
Slide 18: Powertrain Systems
Powertrain Systems The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 18 Source: IHS and Melexis estimates, updated Feb 01, 2022
Slide 19: Chassis - Body - Safety Systems
Chassis - Body - Safety Systems Chassis Body Safety Braking – Steering – Suspension Lighting – HVAC – HMI - Others (Passive) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 19
Slide 20: Chassis – Body – Safety Systems
Chassis – Body – Safety Systems The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 20 Source: IHS and Melexis estimates, updated Feb 01, 2022
Slide 21: Melexis in automotive
Melexis in automotive The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 21 Source: IHS and Melexis estimates, updated Feb 01, 2022
Slide 22: Volkswagen ID.3/MEB
Volkswagen ID.3/MEB Chassis - Body - Safety (>28) Powertrain (4) Interior ambient lighting (x15-20*) Interior animated lighting (x9-10*) EV inverter (x3) Top column module (x2) Battery monitoring system (x1) Integrated brake system (x1) Chassis ride height (x1) * estimation The content of this prese
Slide 23: BYD Han / BYD Dynasty Series
Cel, rev1.1, may-21 BYD Han / BYD Dynasty Series 王朝系列 Chassis - Body - Safety (18) Powertrain (4-9) Interior ambient lighting (x14) EV inverter (x3-8) Transmission (x4) Water pump (x1) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 23
Slide 24: Mercedes EQS / S-Class
Cel, rev1.1, may-21 Mercedes EQS / S-Class Chassis - Body - Safety (170) Powertrain (6-9) Interior ambient lighting (>100) Rain light sensor (x1) Interior animated lighting (<35) 5G antenna fan (x1) ADAS GPU fan (x1) Dashboard GPU fan (x2) EV inverter (up to 6) Perfume diffuser fan (x1) PM 2.5 senso
Slide 25: Accelerated Demand for Automotive Analog ICs
Accelerated Demand for Automotive Analog ICs ● Power management ICs (for Electronic Control Unit [ECU], Systems-on-Chips [SoC], etc.) ● Integrated sensors and Signal conditioning ICs for sensors ● Bus transceiver ICs (for ECU, Sensor and Electronic Modules) ● Driver ICs for electric motors, LEDs (li
Slide 26: Accelerated Demand for Melexis Analog ICs
Accelerated Demand for Melexis Analog ICs ● Power management ICs (for Electronic Control Unit [ECU], Systems-on-Chips [SoC], etc.) ● Integrated sensors and Signal conditioning ICs for sensors ● Bus transceiver ICs (for ECU, Sensor and Electronic Modules) ● Driver ICs for electric motors, LEDs (light
Slide 27: Accelerated Demand for Automotive Analog ICs
Accelerated Demand for Automotive Analog ICs Automotive Analog ICs per car vs. Segment & Propulsion Main Drivers ● Electrification (Electric & Hybrid Vehicles) ● Premium Segment 27 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved.
Slide 28: Under-Investments in Automotive SC Processes
Under-Investments in Automotive SC Processes ● Low investments over the past decade in the process nodes which matter to the automotive but also to many other electronic segments (e.g. consumer, medical, industrial, etc.) ● Limited investments in 2021-2022 compared to the advanced process nodes whic
Slide 29: Under-Investments in Automotive SC Processes
Under-Investments in Automotive SC Processes 29 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved.
Slide 30: Adjacent - From 10 to 20 (%Revenue) – How?
Adjacent - From 10 to 20 (%Revenue) – How? Carbon-neutral Alternative Well-being smart appliances, smart buildings, non-fossil energy, Mobility health, medical, wearable, 2–3 wheelers, e-mobility, micro- gaming… smart metering,… delivery, robotaxis, AGVs... Computing & Robotics automation, assisting
Slide 31: Evolution financials 1999-2022
3Q22 3Q22 3Q22 1Q22 1Q22 1Q22 3Q21 3Q21 3Q21 1Q21 1Q21 1Q21 3Q20 3Q20 3Q20 1Q20 1Q20 1Q20 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
Slide 32: % ASSP sales % automotive sales
% ASSP sales % automotive sales 80% 95% 74.1% 75% 90% 70% 89% 65% 85% 60% 80% 55% 50% 75% 45% 70% 40% 65% 35% 30% 60% 2005 2007 2009 2011 2013 2015 2017 2019 2021 2005 2007 2009 2011 2013 2015 2017 2019 2021 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 32
Slide 33: Q3 2022 results at a glance
Q3 2022 results at a glance Sales Gross margin Operating result 219.8m EUR 44.7% 28.0% 98.3m EUR 61.5m EUR +35% Y-o-Y +39% Y-o-Y +55% Y-o-Y Net result Oper. cash flow Net cash 1.21 EPS (before wcap change) 104.5m EUR 48.8m EUR 75.7m EUR +51% Y-o-Y +33% Y-o-Y Outlook Melexis expects sales in the four
Slide 34: Profit & loss
Profit & loss Q3 2022 versus Q3 2021 versus Q2 2022 P&L account Q3 2022 % of Sales Q3 2021 % of Sales Q2 2022 % of Sales (in million EUR) Sales 219.8 100.0% 162.8 100.0% 208.4 100.0% Cost of goods sold -121.5 -55.3% -92.2 -56.6% -114.8 -55.1% Gross margin 98.3 44.7% 70.6 43.4% 93.6 44.9% R&D -22.1 -
Slide 35: 9M 2022 results at a glance
9M 2022 results at a glance Sales Gross margin Operating result 612.3m EUR 44.9% 27.5% 275.1m EUR 168.7m EUR +28% Y-o-Y +36% Y-o-Y +52% Y-o-Y Net result Oper. cash flow Net cash 3.59 EPS (before wcap change) 104.5m EUR 145.0m EUR 214.9m EUR +43% Y-o-Y +48% Y-o-Y Outlook Melexis expects sales in the
Slide 36: Profit & loss
Profit & loss 9M 2022 versus 9M 2021 P&L account 9M 2022 % of Sales 9M 2021 % of Sales (in million EUR) Sales 612.3 100.0% 477.6 100.0% Cost of goods sold -337.1 -55.1% -274.6 -57.5% Gross margin 275.1 44.9% 203.0 42.5% R&D -64.7 -10.6% -58.4 -12.2% G&A -30.0 -4.9% -23.3 -4.9% Selling -11.8 -1.9% -1
Slide 37: Balance sheet
Balance sheet Q3 2022 versus Q3 2021 versus Q2 2022 Balance Sheet Q3 2022 Q3 2021 Q2 2022 (in million EUR) Total assets 582.9 478.9 522.7 Current assets Cash 104.5 51.8 39.3 Inventory 175.2 131.3 167.3 A/R Trade 98.9 85.8 100.7 Non-current assets 165.0 169.6 161.3 Shareholders' equity 484.8 407.8 43
Slide 38: Q3 2022 cash flow
Q3 2022 cash flow Mln. EUR Free cash flow of 67m EUR in 3Q22 (25m EUR in 3Q21) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 38
Slide 39: 9M 2022 cash flow
9M 2022 cash flow Mln. EUR Free cash flow of 132m EUR 53m EUR dividend paid to the in 9M22 shareholders of Melexis in 9M22 (65m EUR in 9M21) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 39
Slide 40: Dividend yield
Dividend yield Gross dividend per share (EUR) 2005 0.50 Based on average share price 2006 0.50 EUR 2007 0.60 2008 0.60 3.00 9% 2009 0.00 8% 2.50 2010 0.30 7% 2011 0.60 2.00 6% 2012 0.65 5% 2013 0.70 1.50 4% 2014 1.00 1.00 3% 2015 1.90 2016 2.00 2% 0.50 2017 2.10 1% 2018 2.20 0.00 0% 2019 1.30 2010 1
Slide 41: Shareholders structure & shareholder return
Shareholders structure & shareholder return Shareholder structure on Shareholder Return 30 September 2022 2002-2022 180 Return investment 2002-2022 = 15% per year 160 140 120 Xtrion 100 50% 50% Public 80 60 40 20 0 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Share price Total return (incl
Slide 42: Industry firsts from Melexis
Industry firsts from Melexis 2020 2012 2018 MLX81116 multi-channel Next generation Triaxis® RGB-LED driver enabling high- Single chip LIN RGB driver IC Position sensor IC and speed light animations with Pressure sensor featuring SENT Hall-effect current sensors the MeLiBu™ communication 16x4 pixel i
Slide 43: Melexis Investor Relations
Melexis Investor Relations investor@melexis.com Karen van Griensven CFO +32 (0)13 67 07 79 Valerie Kerfs IR Professional The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 43