Melexis Nv · EURONEXT:MELE
Melexis Nv — Q2 2022 Earnings Presentation
42 slides from Melexis Nv's earnings presentation, Jul 27, 2022
Slide 1: Presentation results Q2 2022
Presentation results Q2 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 1500 people on 3 continents
Approximately 1500 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 – S
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: 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 24: 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 25: 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 26: 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 26 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved.
Slide 27: 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 28: Under-Investments in Automotive SC Processes
Under-Investments in Automotive SC Processes 28 The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved.
Slide 29: 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 30: Evolution financials 1999-2022
2Q22 2Q22 2Q22 4Q21 4Q21 4Q21 2Q21 2Q21 2Q21 4Q20 4Q20 4Q20 2Q20 2Q20 2Q20 4Q19 4Q19 4Q19 2Q19 2Q19 2Q19 4Q18 4Q18 4Q18 2Q18 2Q18 2Q18 4Q17 4Q17 4Q17 2Q17 2Q17 2Q17 4Q16 4Q16 4Q16 2Q16 2Q16 2Q16 4Q15 4Q15 4Q15 2Q15 2Q15 2Q15 4Q14 4Q14 4Q14 2Q14 2Q14 2Q14 4Q13 4Q13 4Q13 2Q13 2Q13 2Q13 4Q12 4Q12 4Q12
Slide 31: % ASSP sales % automotive sales
% ASSP sales % automotive sales 80% 95% 75% 74.3% 90% 90% 70% 65% 85% 60% 80% 55% 75% 50% 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. 31
Slide 32: Q2 2022 results at a glance
Q2 2022 results at a glance Sales Gross margin Operating result 208.4m EUR 44.9% 27.5% 93.6m EUR 57.3m EUR +31% Y-o-Y +40% Y-o-Y +57% Y-o-Y Net result Oper. cash flow Net cash 1.18 EPS (before wcap change) 39.3m EUR 47.6m EUR 65.1m EUR +21% Y-o-Y +42% Y-o-Y Outlook Melexis expects sales in the third
Slide 33: Profit & loss
Profit & loss Q2 2022 versus Q2 2021 versus Q1 2022 P&L account Q2 2022 % of Sales Q2 2021 % of Sales Q1 2022 % of Sales (in million EUR) Sales 208.4 100.0% 159.1 100.0% 184.1 100.0% Cost of goods sold -114.8 -55.1% -92.0 -57.8% -100.9 -54.8% Gross margin 93.6 44.9% 67.1 42.2% 83.1 45.2% R&D -22.1 -
Slide 34: HY 2022 results at a glance
HY 2022 results at a glance Sales Gross margin Operating result 392.5m EUR 45.0% 27.3% 176.8m EUR 107.1m EUR +25% Y-o-Y +34% Y-o-Y +51% Y-o-Y Net result Oper. cash flow Net cash 2.38 EPS (before wcap change) 39.3m EUR 96.2m EUR 139.1m EUR +39% Y-o-Y +57% Y-o-Y Outlook Melexis expects sales in the th
Slide 35: Profit & loss
Profit & loss HY 2022 versus HY 2021 P&L account HY 2022 % of Sales HY 2021 % of Sales (in million EUR) Sales 392.5 100.0% 314.7 100.0% Cost of goods sold -215.7 -55.0% -182.4 -57.9% Gross margin 176.8 45.0% 132.4 42.1% R&D -42.5 -10.8% -38.8 -12.3% G&A -19.5 -5.0% -15.5 -4.9% Selling -7.6 -1.9% -7.
Slide 36: Balance sheet
Balance sheet Q2 2022 versus Q2 2021 versus Q1 2022 Balance Sheet Q2 2022 Q2 2021 Q1 2022 (in million EUR) Total assets 522.7 465.3 527.3 Current assets Cash 39.3 59.0 57.8 Inventory 167.3 128.5 158.3 A/R Trade 100.7 80.7 94.2 Non-current assets 161.3 169.6 162.5 Shareholders' equity 434.4 370.9 437
Slide 37: Q2 2022 cash flow
Q2 2022 cash flow Mln. EUR Free cash flow of 38m EUR 53m EUR dividend paid to the in 2Q22 shareholders of Melexis in 2Q22 (19m EUR in 2Q21) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 37
Slide 38: HY 2022 cash flow
HY 2022 cash flow Mln. EUR Free cash flow of 62m EUR 53m EUR dividend paid to the in HY22 shareholders of Melexis in HY22 (41m EUR in HY21) The content of this presentation is CONFIDENTIAL & PROPRIETARY. ALL Rights Reserved. 38
Slide 39: 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 40: Shareholders structure & shareholder return
Shareholders structure & shareholder return Shareholder structure on Shareholder Return 30 June 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. rei
Slide 41: 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 42: 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. 42