Investor presentation...2014/02/17 · Micronas Ltd. Glenrothes, Scotland Test center, Production...

Investor presentation –Year-end results 2013

Analyst and press conference – Hotel Savoy, Zurich – February 20, 2014

The following documentation contains

forward-looking statements that are

subject to certain risks and uncertainties.

Actual results may differ materially from

those anticipated in this presentation.

2

Overview

Markets and customers

Application fields Automotive

Application fields Industrial

Products

Financials

Summary

Backup

Agenda

3

Micronas at a glance

4

About 900 employees worldwide

Leading supplier of hall sensors for the automotive industry

Core business Automotive

Focus on sensors and sensor-based solutions

Full in-house production with own waferfab and backend operations including

testing and packaging

zero ppm quality to ensure customer satisfaction

Commitment to environmental protection

Known and recognized in the automotive

and industrial business as a reliable global

partner for intelligent,

sensor-based system solutions

Micronas Ltd.Glenrothes, Scotland

Test center, Production

Micronas New TechnologiesGmbH, Munich, Germany

Research & DevelopmentSales

Sales officesacross Europe

5

Group structure and locations

Micronas GmbHFreiburg, Germany

Research & DevelopmentMarketing & SalesProduction

Micronas Japan K.K.Tokyo, Japan, Sales office

Micronas Semiconductor Holding AG, Zurich, Switzerland

Headquarters

Sales officeShanghai, China

Sales officeDetroit, USA

Micronas in the year 2013

� Micronas performed well in a demanding market

environment

� Year-on-year hall sensor unit sales growth of

6 percent

� Sales, gross and EBIT margin heavily affected by

yen weakness – net profit reaches CHF 7 million

� Utilization of production facility in Freiburg rose

to 80 percent

� For the third year in a row, proposal for distribution

of CHF 0.05 per registered shares

6

Micronas in the year 2013

� Starting of successful volume production of

2D Hall family

� Second generation of current sensor launched in

2013 and already integrated into applications

� Unit sales of embedded controllers, only

introduced in 2012, reached the million mark

� Industrial year over year sales growth of

36 percent

� 8-inch wafer line successfully started volume

production

7

Agenda

8

Overview




Products

Financials

Summary

Backup

Market and technology drivers

Comfort and

lifestyle

High levels of functionality, low

power and small form factor

enable new applications and

comfort features

Economy

Reduced overall system cost enabled by

highly integrated sensors and embedded

controllers, e.g. increasing magnet costs

can be compensated by higher sensitivity

9

Increased safety demand drive

growth for novel, intelligent

and redundant products and

system solutions

Increased demand for high energy

efficiency and CO2 reduction needs

optimized sensors and actuator

solutions, e.g. for engines, BLDC

motors and HVAC systems

Environmental

protectionSafety

100%

120%

140%

160%

180%

200%

220%

240%

260%

280%

300%

2013 2014 2015 2016 2017 2018

Vehicle production (MU)

Market development

10

Source: Strategy Analytics / IHS / WSTS / Micronas, January 2014

CAGR 2013 – 2018 = 5%

Ma

rke

t fi

gu

res

no

rma

lize

dto

20

13

00

20

40

60

80

100

120

2013 2014 2015 2016 2017 2018


-2%

-4%

8%

23%

-0.2%-5%

0%

5%

10%

15%

20%

25%

-5

0

5

10

15

20

25

WesternEurope

thereofGermany

USA China Japan

Registration in Mil./units

y/y growth13/12

New passenger car registration 2013

11

Market development

Source: VDA – Verband der Automobilindustrie, January 2014

1212

Automotive manufacturers – OEMs

Customers of our customers

100%

120%

140%

160%

180%

200%

220%

240%

260%

280%

300%

2013 2014 2015 2016 2017 2018

Electronic systems Automotive (M$)


Market development

13


CAGR 2013 – 2018 = 5%

CAGR 2013 – 2018 = 7%

0

50.000

100.000

150.000

200.000

250.000

300.000

2013 2014 2015 2016 2017 2018


Ma

rke

t fi

gu

res

no

rma

lize

dto

20

13

1414

Customer and distributor base

100%

120%

140%

160%

180%

200%

220%

240%

260%

280%

300%

2013 2014 2015 2016 2017 2018

BLDC motors Automotive (M$)

Hall sensors Automotive (M$)



Market development

15


Ma

rke

t fi

gu

res

no

rma

lize

dto

20

13

CAGR 2013 – 2018 = 5%

CAGR 2013 – 2018 = 7%

CAGR 2013 – 2018 = 8%

CAGR 2013 – 2018 = 15%

Hall sensors and BLDC motors willcontinue to outgrow vehicle production

and electronic systems in cars

Agenda

16

Overview




Products

Financials

Summary

Backup

Powertrain

Chassis and safety

� Micronas has a long history in Automotivewith a very large customer base

� Thanks to its full in-house manufacturing, Micronas maintains full control of production from wafer fab, assembly to final testing

� This provides highest flexibility to meet automotive quality and to offer unique customization capability

� Micronas offers the world’s largest Hall sensor portfolio covering all automotive applicationsin powertrain, chassis and safety as well as body and comfort

Application fields for Automotive

Automotive

17

Body and comfort

� Important electrification trend in the vehicle body compartment

� Requirements are driving the trends towards higher safety integration

� Increased demand for high energy efficiency and CO2 reduction

Automotive applications

18

Powertrain

Active pedal

Chassis and safety Body and comfort

Powertrain valves

Battery management

Gear position

Steering torque/angle

Steering motor position

Chassis height

Braking

Window/sunroof position

Wiper position

Grille shutter

Seat position

� Hall sensors are usedin acceleration pedaland electronic throttlecontrol (ETC)

Example powertrain

� Electronic throttle control replaces mechanical link between acceleration pedal and throttle

� The engine control unit (ECU) determines the required throttle position from data measured by accelerator pedal position sensor, engine speed sensor, vehicle speed sensor etc…

� Environmental protection

� Improves air/fuel ratio, reduces exhaust emission

� More comfort and lifestyle

� Allows cruise control, eases gear changes

� Safety

� Improves stability control, enables pre-crash system

� Economy

� Reduces fuel consumption

19

Electronic throttle control

Throttle

Acceleration pedal

Micronas is #1 supplier for magnetic sensors used in ETC

and acceleration pedal modules (IHS, 1st HY-2013)

Example – body and comfort

� The flaps of the front grill are driven by an actuator and set in the desired position tocontrol the intake of fresh air into the engine compartment as needed

� The system determines whether to cool the engine depending on changes in the temperature of the cooling water and engine oil

� Lowers drag coefficient by 3-10% depending on the vehicle design and the front-end shape

� Environment protection

� Reduces CO2 emission by up to 4g/km

� Further reduces emission by about 15% through shorter time required for engine warm-up

� Economy

� Reduces fuel consumption by 0.2 liters per 100km

� Grille shutter uses integrated high voltage controller and Hall sensor

Grille shutter

20

Now in volume productionat multiple OEMs

Agenda

21

Overview

Markets



Products

Financials

Summary

Backup

White goods and

home appliances

Building and home automation

� Intelligent sensor and actuator solutions for smart automation networks to enable increased comfort and lifestyle

� Highly reliable and robust sensors to meet the demands for long lifetime within harsh environments

� Wide range of cost-effective sensor solutions for eco-friendly home appliances with small form factor

Application fields for Industrial

Industrial

22

Heavy machines and factory automation

� Trend for higher comfort requires further electrific-ation and replacement of today’s mechanical systems

� Higher energy efficiency, reliability and comfort are driving the trend of optimized sensor and actuator solutions

� Higher safety and environmental require-ments are driving the demand for more sensors with high performance

Industrial applications

23

Building and home automation

Roller shutter/blinds

Heavy machines and factory automation

White goods andhome appliances

Door/window lock

Pressure measurement

Current measurement

Joystick

Throttle/valve

Cylinder position

Proximity switch

Door lock

Flow measurement

Motor commutation

Push button

Example – heavy machines and factoryautomation

� Hall-effect sensors are applied to detect angular or linear position of handle against its base

� Hall-effect sensors are replacing contact-based potentiometers

� Reliability

� Immunity to mechanical wear enables long-lasting operation with multi-million cycles

� Safety

� Implementation of two independent outputs allows the signals to be monitored and compared for fail safe operation

� Non-contact joysticks are used in reliable and safety critical applications like off-highway vehicles and man-machine interfaces

24

Joystick application

Agenda

25

Overview




Products

Financials

Summary

Backup

Micronas product portfolio

26

Embedded controllersHall-effect sensors

Gas sensors

� Easy to implement contact-less switch

� Replacement of micro switches

Hall-effect sensors – products

Micronas offers the broadest portfolio of Hall sensors for automotive andindustrial

Switches

27

buckle switchroller shutter

� Precise angle detection with a single sensor

� Replacement of inductive or optical angle encoders

Angular

steeringangle

3D HAL uses licenses of Fraunhofer Institute for Integrated Circuits IIS.

� Highly accurate position detection

� Replacement of conventional potentiometers

Linear

throttleflap

linearposition

� Small form factor contact-less current transducer

� Replacement of shunt based solutions

Current

Power management

currentsensormodule

Hall-effect sensors – trends

Safety

New product development and

documentation are meeting the

requirements of ISO26262, the de-

facto standard for automotive

functional safety

Micronas has developed a concept

for its devices to become insensitive

against disturbing magnetic stray

fields caused by the increased car

electrification (HEV/EV)

28

Capacitors are integrated into

the sensor package in order to

fulfill stringent EMC/ESD

requirements and to reduce

overall system costs

Two silicon dies are integrated

into a single package to respond

efficiently to redundancy

requirements for most critical

applications (pedal, throttle,

steering)

Redundancy

Robustness

Integration

Embedded controllers

� High flexibility to directly drive BLDC and

BDC motors through on the spot

reconfiguration

� Greener innovation through weight reduction

and power-efficient motor commutation

� More comfort and connectivity through noise

reduction, climate control, driver relaxation

� Further improved power efficiency and better

dynamics when leveraging synergies with our

2D/switch Hall sensor families

Products and trends

Micronas highly integrated solutions are providing customers with highflexibility and efficiency to answer higher demand for electric motors

29

– Gas sensors

� Highly integrated ambient sensor platform with

four sensing channels, two independent for

gases, one each for temperature and relative

humidity

� By using more sensing parameters, fire detection

systems will offer greater protection from false

alarms

� Miniature sensor package enables almost

invisible end customer solutions

� Better comfort and reduced energy consumption

through intelligent air quality control systems

Gas sensors become digital: Micronas mySENS® gas sensing technologyovercomes the limitations of existing technologies

30

Products and trends

Agenda

31

Overview




Products

Financials

Summary

Backup

-5

0

5

10

15

20

25

30

2012 2013

Industrial performance

Units

Sales in CHF

EBIT in CHF

0

50

100

150

200

250

300

350

2012 2013

Automotive performance

Units

Sales in CHF

EBIT in CHF

32

Micronas Group – segment information

Mil.Mil./CHF 31.12.2013 31.12.2012

Automotive

Net sales 143.6 157.0

Gross margin 45.8 65.0

in % of sales 31.9% 41.4%Operating profit (EBIT) 9.1 25.5

in % of sales 6.4% 16.3%

Mil./CHF 31.12.2013 31.12.2012

Industrial

Net sales 8.3 6.1

Gross margin 3.2 2.0

in % of sales 38.0% 32.6%Operating loss (EBIT) -1.1 -2.9

in % of sales -12.7% -47.8%

Automotive accounts for 94% and Industrial for 6% of total turnover

Mil.

7%

93%

Sales by product lines

Controllers Hall-effect sensors

Mil./CHF 31.12.2013 31.12.2012 Change in %

Hall-effect sensors 133.2 148.1 -10%

Controllers 10.4 8.9 17%

Total sales 143.6 157.0 -9%

33

Segment Automotive – product lines

55%11%

11%

7%16%

Sales in Europe

Germany France Hungary Czech Republic Others

Mil./CHF 31.12.2013 31.12.2012 Change in %

Europe 50.5 46.5 9%

Asia 89.7 107.7 -17%

America 11.5 14.2 -19%

Others 0.2 0.1 100%

Total sales 151.9 168.5 -10%

88%

9%3%

Sales in Asia

Japan China Others

59%

33%8%0%

Sales total

Asia Europe America Others

34

Micronas Group – regional information

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Q1-13 Q2-13 Q3-13 Q4-13

Book-to-billMil./CHF 31.12.2013 31.12.2012

Orders on hand,

beginning of year 43.4 47.5

Net sales 151.9 168.5

Order intake 155.9 164.7

Translation adjustments 0.7 -0.3

Orders on hand,

end of year 48.1 43.4

Book-to-bill 1.03 0.98

35

Micronas Group – order book

Orders on hand by end of year of CHF 48 million – book-to-bill ratio of 1.03

ratio

Micronas Group – income statement

36

Mil./CHF in % of Mil./CHF in % of

net sales net sales

Net sales 151.9 168.5

Gross margin 49.0 32.2% 67.5 40.1%

Research and development expenses -27.8 18.3% -28.9 17.2%

Marketing and sales expenses -9.9 6.5% -10.3 6.1%

Administrative and general expenses -5.6 3.7% -6.2 3.7%

Other operating income/expenses 2.3 1.5% 2.2 1.3%

Operating profit (EBIT) 8.1 5.3% 24.2 14.4%

Financial income/expenses/FX net. -1.3 -11.1Pretax profit 6.8 4.5% 13.1 7.8%

Income taxes -0.2 6.2Profit for the period 6.6 4.4% 19.3 11.5%

EBITDA 19.4 12.8% 35.5 21.1%

Earnings per share in CHF 0.23 0.66

31.12.2013 31.12.2012

Mil./CHF 31.12.2013 31.12.2012restated

1

Total non-current assets 86.2 85.5

Cash, cash equivalents and short-term financial

investments 173.7 172.4

Other current assets 43.2 39.9

Total assets 303.1 297.8

Total shareholders' equity 129.8 125.6in % of total assets 42.8% 42.2%

Total long-term liabilities 150.2 148.0

Total current liabilities 23.1 24.2

Total liabilities 173.3 172.2

Total shareholders' equity and liabilities 303.1 297.81Restated due to the revised IAS 19 standard

Micronas Group – balance sheet

37

Healthy net cash and equity position

Micronas Group – trade working capital

38

Trade net working capital represents 19 percent of net sales

Mil./CHF 31.12.2013 31.12.2012

Inventories 26.9 26.2

Accounts receivable 12.7 11.2

Accounts payable 11.4 9.2

Trade net working capital 28.2 28.2

Micronas Group – cash flow statement

39

Healthy net cash position of CHF 170 million

Mil./CHF 31.12.2013 31.12.2012


cash deposits at the beginning of the year 169.9 156.2

Cash flow from operating activities 10.6 23.6

Cash flow from investing activities -10.2 -7.6

Cash flow from financing activities -1.3 -1.50.7 0.7

Exchange effect on cash 1.4 -0.8

Change in cash, cash equivalents and short-term

financial cash deposits 0.5 13.7


cash deposits at the end of the year 170.4 169.9

Agenda

40

Overview




Products

Financials

Summary

Backup

Demand for electronics in the automotive and

industrial sectors continues to rise steadily, leading

to increased use of Micronas Hall sensors and

embedded controllers, and thus to further growth.

� Growth regions are still China and the USA

� Europe is staging a slight recovery

� No prospect of the yen strengthening against the euro

� With a yen-euro FX rate of 140, the Board of Directors and

Management thus expect for the first half-year 2014:

� sales of around CHF 78 million

� lower single-digit EBIT-margin percentage range

Outlook for first half-year 2014

41

Summary

42

� Micronas already supplied more than 2.5 billion hall

sensors and offers the world’s largest hall sensor

portfolio for the automotive and industrial market

� Micronas offers its customers new and innovative

solutions for ever more demanding applications within

the automotive and industrial markets

� Micronas handles all the different stages from

development to production under one roof which

enables us to provide strong customer advantages

� Thanks to a rigorous commitment to quality and

reliable delivery and an excellent product portfolio,

Micronas is in a leading worldwide position

Agenda

43

Overview




Products

Financials

Summary

Backup

Shareholder structure

Shares by country Shares by shareholders category

30.6%

6.0%

0.9%14.9%

2.7%

7.5%

37.4%

Switzerland

Great Britain

Germany

Rest of Europe

USA

Rest of world

Shares notregistered

22.5%

2.0%

21.5%

0.2%

0.9%2.0%

13.5%

37.4%

Persons

Companies

Funds

Foundations

Pension funds

Insurance comp.

Banks

Shares notregistered

Total shares outstanding as at December 31, 2013: 29 727 930(share capital including options exercised)

44

Major shareholders

45

Number

of shares

RBC Dexia Investor Services Trust1 London, Great Britain 2 002 764 6.74

Nortrust Nominees1 London, Great Britain 1 772 038 5.96

Sparinvest Holdings SE2 Luxembourg 1 588 436 5.35

Black Creek Investment Management Inc.2 Toronto, Canada 1 495 070 5.04

FIL Limited2 Hamilton, Bermuda 1 479 740 4.98

Chase Nominees Ltd.1 London, Great Britain 950 329 3.20

Brandes Investment Partners, L.P.2 San Diego, USA 897 970 3.02

As at December 31, 2013, the Company is aware of the following shareholders holding 3 percent or

more of the capital and/or voting rights of the Company:

Shareholder Registered office Percentage

1RBC Dexia Investor Services Trust, Nortrust Nominees Ltd. and Chase Nominees Ltd. are acting in their capacity as nominees for other investors. The above figures (number of shares and percentages) conform to the figures as at December 31, 2013.

2The above figures (number of shares and percentages) conform to the figures contained in the respective notifications to the Company and the Disclosure Office of the SIX Swiss Exchange; they may not be accurate as at December 31, 2013.

� February 20, 2014 Closing date of share register

� March 21, 2014 Ordinary Shareholders’ Meeting10 a.m., Technopark, Zurich

� April 24, 2014 Quarterly key figures Q1-2014

� July 22, 2014 Half-year results 2014

� October 21, 2014 Quarterly key figures Q3-2014

IR calendar

46

IR contactSusy Krucker, Head of Investor Relations, [email protected] further information, please check: www.micronas.com / Investor

Investor presentation...2014/02/17 · Micronas Ltd. Glenrothes, Scotland Test center, Production...

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