Half-Year Report

Transkript

1 Half-Year Report 215

2 Half-Year Report 215 Micronas Group Contents Key figures at a glance 2 Abschluss auf einen Blick 2 Letter to shareholders 3 Aktionärsbrief 5 Interim Report 8 Notes to the condensed consolidated interim financial statements Additional information 19 Key figures at a glance Abschluss auf einen Blick Micronas Group 1st half 215 1st half 214 Micronas Gruppe Net sales Operating profit (EBIT) EBITDA Profit/loss for the period Earnings per share in CHF Shareholders equity Equity ratio in percent Cash, cash equivalents and short-term financial cash deposits Cash flow from operating activities Netto-Umsatzerlöse Betriebsgewinn (EBIT) EBITDA Gewinn/Verlust der Geschäftsperiode Ergebnis pro Aktie in CHF Eigenkapital Eigenkapitalquote in Prozent Flüssige Mittel und kurzfristige Festgeldanlagen Cash Flow aus Geschäftstätigkeit 2

3 Letter to shareholders Letter to shareholders Ladies and Gentlemen As communicated in April, the removal of the floor from the Swiss franc/euro exchange rate reduced the final figures in the income statement and balance sheet. After adjusting for currency movements, Micronas achieved a slight year-on-year increase in sales in the first half of 215. The earnings picture was less satisfactory. The switch to 8-inch production continued to pull down operating earnings, while the conversion of cash holdings denominated in foreign currencies had a negative effect on the net result. The Micronas Group achieved consolidated net sales of CHF 7.8 million in the first half of 215, a fall of 12.6 percent compared with the first half of 214. This was due to the repeal of the minimum euro rate; Group sales actually went up by 2 percent net of currency effects. The gross margin for the period under review was 27.3 percent of sales, compared with 3.4 percent in the equivalent prioryear period. The conversion from 6 to 8 inches in the front end and to new production facilities in the back end, combined with various new product launches and qualifications, continue to have a negative impact on operating earnings. As a result, the EBIT of CHF 1.9 million was below the year-back figure of CHF 3.3 million, while the EBIT margin for the first half of 215 came to 2.7 percent. After financial income and taxes there was, as expected, a loss of CHF 5.2 million for the first half of 215. This is mainly due to the revaluation of euro-denominated cash holdings at Micronas Semiconductor Holding AG, which caused a book loss of CHF 6.1 million following the removal of the EUR minimum rate. Earnings per share came to CHF.18. Net liquidity (cash, cash equivalents and short-term financial cash deposits) went down CHF 25. million compared with the end of 214 to stand at CHF million at end-june 215. This decrease is mainly due to currency effects. Shareholders equity came to CHF 94.1 million compared to CHF 19.8 million at the end of 214. This decline was fueled primarily by currency effects on valuations. The equity ratio stood at 36.9 percent. Sales at the Automotive segment reached CHF 66.5 million. This is 12. percent down on the first half of 214, though the currency-adjusted figure actually shows a slight increase of 3 percent. The big three automotive markets, Western Europe, the USA and China, all grew during the period under review. By contrast, Japan, our largest national sales market, saw domestic demand for cars fall by 12 percent compared with the equivalent prior-year period. An increase in the tax on mini-vehicles (up to 66 cc), introduced in Japan in April, also had a negative effect. Operating profit (EBIT) at the Automotive segment came to CHF 1.6 million, or 2.5 percent of sales. There is great customer interest in the new Halleffect sensor products announced last year, all of which are being produced on the 8-inch line. We have already started mass production of our first product with integrated capacitors, for example, and have acquired other customer projects as well. In China we have acquired additional platforms for gas pedal applications and extended our clear market leadership. More projects involving our 2D-HAL product line have also started up for new applications such as valve control and coolant valves. We were particularly pleased to be given the Global Cooperation Award by our largest customer, Denso, in recognition of the reliability of our supplies and our excellent support. Micronas was present again this spring at the most important trade fairs, including Sensor+Test in Nuremberg, the most important trade fair for sensor, measuring and testing technology, as well as the Automotive Engineering Exhibition in Yokohama, the largest Japanese trade fair for automotive engineers. The Company took these opportunities to present its latest product innovations to an interested specialist audience. During the first half of 215, Micronas announced its first redundant Linear Hall-effect sensor family 3

4 Half-Year Report 215 Micronas Group (HAR 24xy). This is produced on a package less than 1 millimeter thick and integrates two completely independent silicon chips. The extremely thin package allows very small air gaps, enabling the use of even smaller magnets. The new sensor family is especially suitable for automotive applications with redundant capabilities, such as throttle and pedal position detection and exhaust gas recirculation (EGR). The announcement of the first member of the new embedded motor controller generation is another important step in securing new markets for our sensor-based solutions. Thanks to its integrated power bridges, this controller (HVC 4223F) offers a unique level of integration and unprecedented flexibility for the direct control of compact, costeffective electric motors (BLDC, BDC and stepper motors) in automotive and industrial applications. This motor controller chip allows the development of very small, efficient, quiet and cost-effective actuator solutions for applications such as HVAC flaps, active radiator grills, pumps, air cooling fans and mechanical actuators in cornering lights. The Industrial segment, which in the first half of 215 once again generated all its turnover from Hall sensor products, achieved sales of CHF 4.4 million compared with CHF 5.5 million in the equivalent prior-year period. After currency adjustment, a decline of 7 percent was recorded. The Industrial segment contributed 6.2 percent of total Group sales in the first half of 215. Operating profit came to CHF.3 million, which gives a pleasing EBIT margin of 6. percent. Most of our Industrial sales are generated through our global distribution partners. To give a further boost to sales in the automotive and industrial sectors, Micronas and its distribution partner Rutronik extended their long-standing partnership in Europe; Rutronik is now the global franchise partner of Micronas. The global franchise includes the entire Micronas product range of Hall-effect sensors and embedded motor controllers. We have also signed contracts with two more leading global catalog distributors: Digi-Key and Mouser. This means that customers now have the option of very quickly and easily ordering smaller quantities and samples from our wide product range. Capacity utilization at Micronas Group s own manufacturing facilities stood at around 85 percent in the first half-year. In January and February 215 ISO/TS monitoring audits were carried out successfully in Freiburg and Munich in Germany, as well as in Glenrothes, Scotland. Thanks to the year- round use of waste heat, the combined heat and power plant commissioned in mid-214 has achieved very high overall efficiency and is exceeding target levels for performance and availability. At the ordinary Shareholders Meeting of March 27, 215, all proposals put forward by the Board of Directors were approved. The proposed distribution of CHF.5 per registered share against reserves from capital contributions was paid out to Micronas shareholders at the beginning of April 215. The share buy-back program proceeded as planned; between March 1 and June 26, 215, a total of shares were repurchased, equivalent to 1.7 percent of the Company s share capital. With new product announcements in the period under review, Micronas expanded what was already the world s broadest portfolio of Hall-effect sensors and embedded motor controllers for automotive and industrial electronics. We believe that despite the short-term negative effects of manufacturing changes and of the franc shock, Micronas, thanks to its strategy and innovative product portfolio, is on track to achieve the long-term goals announced in February. July 23, 215 Heinrich W. Kreutzer Chairman Matthias Bopp Chief Executive Officer 4

5 Aktionärsbrief Aktionärsbrief Sehr geehrte Damen und Herren Wie bereits im April kommuniziert, hat die im Januar erfolgte Aufhebung des Mindestkurses des Schweizer Frankens zum Euro die Werte der Erfolgsrechnung und der Bilanz reduziert. Währungsbereinigt konnte Micronas den Umsatz im ersten Halbjahr 215 gegenüber der vergleichbaren Vorjahresperiode leicht steigern. Weniger erfreulich gestaltete sich die Er trags seite. Einerseits belastet nach wie vor die Umstellung auf 8-Zoll das operative Ergebnis, andererseits hat die Umbewertung der in Fremdwährung gehaltenen Geldbestände das Reinergebnis negativ beeinflusst. Die Micronas Gruppe erreichte im ersten Halbjahr 215 einen konsolidierten Netto-Umsatzerlös von CHF 7.8 Millionen. Verglichen mit dem ersten Halbjahr 214 ergibt dies aufgrund der Aufhebung des Euro-Mindestkurses einen Umsatzrückgang von 12.6 Prozent, währungsbereinigt hingegen konnte der Gruppen-Umsatz um 2 Prozent gesteigert werden. Die Bruttomarge ergab für die Berichtsperiode einen Wert von 27.3 Prozent des Umsatzes, verglichen mit 3.4 Prozent in der vergleichbaren Vorjahresperiode. Die Umstellung im Frontend von 6 auf 8 Zoll sowie im Backend auf neue Fertigungsanlagen, verbunden mit diversen Produktneuanläufen und Qualifikationen, belasten das Betriebsergebnis nach wie vor. Entsprechend lag der EBIT mit CHF 1.9 Millionen unter dem Vorjahreswert von CHF 3.3 Millionen und die EBIT-Marge stellte sich für das erste Halbjahr 215 bei 2.7 Prozent ein. Nach Finanzergebnis und Steuern resultierte im ersten Halbjahr 215 erwartungsgemäss ein Verlust von CHF 5.2 Millionen. Dieser Verlust ist hauptsächlich auf die Bewertung der in Euro gehaltenen Geldbestände in der Micronas Semiconductor Holding AG zurückzuführen, welche durch die Aufhebung des Euro-Mindestkurses einen Buchverlust von CHF 6.1 Millionen verursacht hat. Das Ergebnis pro Aktie betrug CHF.18. Die Netto-Liquidität (flüssige Mittel und kurzfristige Festgeldanlagen) verringerte sich gegenüber Ende 214 um CHF 25. Millionen und betrug CHF Millionen per Ende Juni 215. Dieser Rückgang ist vorwiegend auf Kurseffekte zurückzuführen. Das Eigenkapital erreichte CHF 94.1 Millionen, verglichen mit CHF 19.8 Millionen per Ende 214. Dieser Rückgang erklärt sich zum grössten Teil aus kursbedingten Bewertungen. Die Eigenkapitalquote betrug 36.9 Prozent. Der Umsatz des Segments Automotive erreichte CHF 66.5 Millionen und ist gegenüber dem ersten Halbjahr 214 zwar um 12. Prozent rückläufig, währungs bereinigt resultierte hingegen ein leichter Anstieg von 3 Prozent. Die drei grossen Automobilmärkte, Westeuropa, USA und China, lagen in der Berichtsperiode allesamt im Plus. In unserem grössten Absatzland Japan hingegen lag die Inland- Pkw-Nachfrage 12 Prozent unter der vergleich baren Vorjahresperiode. Negativ wirkte sich dort auch eine Steuererhöhung auf Mini-Vehicles (bis 66 ccm) aus, die seit April gilt. Der Betriebsgewinn (EBIT) des Segments Automotive erreichte CHF 1.6 Millionen, was 2.5 Prozent des Umsatzes entspricht. Für die im letzten Jahr angekündigten neuen Hall- Sensor-Produkte, bereits alle auf der 8-Zoll-Linie gefertigt, besteht grosses Kundeninteresse. So haben wir z. B. für unser erstes Produkt mit integrierten Kapazitäten die Serienproduktion aufgenommen und konnten weitere Kunden-Projekte gewinnen. In China konnten wir weitere Plattformen in der Applikation Gaspedal gewinnen und unsere klare Marktführerschaft ausbauen. Auch mit den Sensoren unserer 2D-HAL-Produktlinie sind weitere Projekte für neue Applikationen wie Ventilsteuerung oder Kühl wasser ventil angelaufen. Besonders gefreut hat uns die Auszeichnung mit dem Global Cooperation Award unseres grössten Kunden Denso, mit dem er die Zuverlässigkeit unserer Lieferungen und unseren exzellenten Support belohnt. Micronas war auch dieses Frühjahr auf den wichtigsten Leitmessen wie der Sensor+Test in 5

6 Halbjahresbericht 215 Micronas Gruppe Nürnberg, die bedeutendste Leitmesse im Bereich Sensorik, Mess- und Prüftechnik, sowie an der Automotive Engineering Exhibition in Yokohama, die grösste japanische Messe für Automobilingenieure, vertreten und hat ihre neusten Produktinnovationen dem interessierten Fachpublikum vorgestellt. So hat Micronas im ersten Halbjahr ihre erste redundante Linear-Hall-Sensorfamilie (HAR 24xy) angekündigt. Diese wird in einem weniger als einem Millimeter flachen Gehäuse gefertigt und integriert zwei vollkommen autarke Silizium-Chips. Das äusserst dünne Gehäuse erlaubt sehr kleine Luftspalten und ermöglicht so die Verwendung von noch kleineren Magneten. Die neue Sensorfamilie eignet sich besonders für redundant ausgelegte Automobilanwendungen wie z.b. die Positions erkennung von Drosselklappen und Pedalen oder bei der Abgasrückführung (EGR). Die Ankündigung des ersten Mitglieds der neuen embedded Motor-Controller-Generation ist ein weiterer wichtiger Schritt, neue Märkte mit unseren sensorbasierten Lösungen anzugehen. Aufgrund seiner integrierten Leistungsbrücken bietet dieser Controller (HVC 4223F) einen einzigartigen Integrations grad und eine beispiellose Flexibilität für die direkte Ansteuerung kompakter und kostengünstiger Elektromotoren (BLDC-, BDC- und Schrittmotoren) in Fahrzeuganwendungen und im industriellen Umfeld. Dieser Chip zur Motoransteuerung ermöglicht die Entwicklung sehr kleiner, effizienter, leiser und kostengünstiger Antriebslösungen für Anwendungen wie HVAC-Klappen, aktiver Kühlergrill, Pumpen, Luftkühlgebläse und mechanische Aktuatoren im Kurvenlicht. Das Segment Industrial, welches auch im ersten Halbjahr 215 den gesamten Absatz mit Hall-Sensor-Produkten generierte, erwirtschaftete einen Umsatz von CHF 4.4 Millionen verglichen mit CHF 5.5 Millionen in der entsprechenden Vorjahresperiode. Währungs bereinigt resultierte ein Rückgang von 7 Prozent. Das Industrie-Segment steuerte im ersten Halbjahr 215 einen Umsatzanteil von 6.2 Prozent zum Gesamtumsatz bei. Der Betriebsgewinn erreichte CHF.3 Millionen, was eine erfreuliche EBIT-Marge von 6. Prozent ergibt. Der grösste Teil der Industrie-Umsätze wird durch unsere weltweiten Distributionspartner generiert. Um den Verkauf im Automobil- und im Industriebereich weiter zu steigern, haben Micronas und ihr Distributionspartner Rutronik ihre langjährige Partnerschaft in Europa erweitert und Rutronik ist ab sofort weltweiter Franchisepartner von Micronas. Die globale Franchise umfasst das gesamte Micronas Produktspektrum an Hall-Effekt-Sensoren und embedded Motor-Controllern. Darüber hinaus konnten wir mit Digi-Key und Mouser, weitere weltweit führende Katalog-Distributoren, Verträge unterzeichnen. Dadurch haben Kunden jetzt die Möglichkeit, auch kleinere Stückzahlen und Muster unserer viel - fältigen Produktpalette sehr schnell und einfach zu bestellen. Die Auslastung in den Micronas-eigenen Fertigungsanlagen lag im ersten Halbjahr bei ca. 85 Prozent. Im Januar und im Februar 215 sind die ISO/TS Überwachungsaudits in Freiburg und München, Deutschland, sowie in Glenrothes, Schottland, erfolgreich durchgeführt worden. Das Mitte 214 in Betrieb genommene Blockheizkraftwerk erreicht aufgrund der ganzjährigen Nutzung der Abwärme einen sehr hohen Gesamtwirkungsgrad und übertrifft die angepeilten Kenngrössen bezüglich Leistung und Verfügbarkeit. An der diesjährigen ordentlichen Generalversammlung vom 27. März 215 wurden sämtliche Anträge des Verwaltungsrats angenommen. Die beschlossene Ausschüttung aus Kapitaleinlagereserven von CHF.5 pro Namenaktie konnte den Micronas Aktionären Anfang April 215 gutgeschrieben werden. Das Aktienrückkaufprogramm ist planmässig angelaufen; vom 1. März bis 26. Juni 215 sind insgesamt Aktien zurückgekauft worden, was 1.7 Prozent des Aktienkapitals von Micronas entspricht. 6

7 Aktionärsbrief Durch neue Produktankündigungen in der Berichtsperiode konnte Micronas ihr weltweit umfangreichstes Portfolio an Hall-Sensoren und embedded Motor- Controllern für die Automobil- und Industrieelektronik weiter ausbauen. Wir sind davon überzeugt, dass Micronas trotz der kurzfristigen negativen Auswirkungen durch Fertigungsumstellungen und des Frankenschocks mit ihrer Strategie und ihrem innovativen Produktportfolio auf dem richtigen Weg ist, die im Februar kommunizierten Langzeit-Ziele zu erreichen. 23. Juli 215 Heinrich W. Kreutzer Präsident Matthias Bopp Chief Executive Officer 7

8 Half-Year Report 215 Micronas Group Interim Report Condensed consolidated statement of comprehensive income Net sales 12 Cost of sales Margin 12 in % of net sales Research and development expenses Marketing and sales expenses Administrative and general expenses Other operating income (+) and expenses ( ), net Operating profit 12 in % of net sales Financial income 6 Financial expenses 7 Foreign exchange gains/losses Profit/loss before tax Income taxes Profit/loss for the period in % of net sales Note 1st half st half Attributable to: Shareholders of the parent Other comprehensive income Items that are not reclassified subsequently to profit or loss Remeasurement on pension obligations Income tax effect Items that are or may be reclassified subsequently to profit or loss Translation adjustment Gain/loss on valuation of available-for-sale financial assets Gain/loss on cash flow hedge Income tax effect Other comprehensive income for the period Total comprehensive income for the period Attributable to: Shareholders of the parent Weighted average number of issued and outstanding shares Earnings per share in CHF undiluted Weighted average number of issued and outstanding shares for calculation of earnings per share diluted Earnings per share in CHF diluted

9 Interim Report Condensed consolidated statement of financial position Assets Note Non-current assets Property, plant and equipment Intangible assets Investments 11 Other long-term assets Deferred tax assets Total non-current assets Current assets Inventories Accounts receivable trade Other current assets Short-term financial investments 8, 11 Cash and cash equivalents 8 Total current assets Total assets Shareholders equity and liabilities Shareholders equity Issued capital 9 Additional paid-in capital Treasury shares 1 Other reserves Retained deficit Equity attributable to the shareholders of the parent Long-term liabilities Pension obligations Other long-term provisions Other long-term liabilities Total long-term liabilities Current liabilities Accounts payable trade Short-term provisions Income tax payable Other current liabilities Total current liabilities Total liabilities Total shareholders equity and liabilities

10 Half-Year Report 215 Micronas Group Condensed consolidated statement of cash flows Operating activities Note 1st half 215 1st half 214 Profit/loss before tax Depreciation and amortization Interest income ( ) and expense (+), net (excl. interest portion of discounted long-term provisions and liabilities) 6, 7 Fair value gains ( ) and losses (+) on derivative financial instruments 6, 7 Gain on disposal of property, plant and equipment Share compensation expense Foreign exchange gains and losses Benefits paid to pensioners Change in other long-term assets, provisions and liabilities Change in inventories Change in accounts receivable trade and other current assets Change in accounts payable trade, short-term provisions and other current liabilities Income taxes paid ( ) and received (+) Cash flow from operating activities Investing activities Capital expenditures Short-term financial investments 1 8 Interest received Proceeds from disposal of property, plant and equipment Cash flow from investing activities Financing activities Increase in issued capital and additional paid-in capital Buy-back program treasury shares 1 Distribution to shareholders Cash flow from financing activities Exchange effect on cash Change in cash and cash equivalents Cash and cash equivalents, end of period Cash and cash equivalents as at January 1 Change in cash and cash equivalents During 215 and 214, excess cash has been invested in short-term financial cash deposits with a maturity of more than three months up to one year. Please refer to note 8. 1

11 Interim Report Condensed consolidated statement of changes in equity Equity attributable to the shareholders of the parent Issued capital Additional paid-in capital Treasury shares Cash flow hedge reserve Availablefor-sale reserve Remeasurements on pension obligations Foreign currency translation reserve Retained deficit Total 1st half 215 Balance as at Loss for the period Other comprehensive income for the period Income tax effect on other comprehensive income Total comprehensive income for the period Distribution to shareholders Exercise of share options Share compensation expense Buy-back program treasury share Balance as at st half 214 Balance as at Profit for the period Other comprehensive income for the period Income tax effect on other comprehensive income Total comprehensive income for the period Distribution to shareholders Exercise of share options Share compensation expense Balance as at

12 Half-Year Report 215 Micronas Group Notes to the condensed consolidated interim financial statements Accounting principles Basis of preparation The unaudited condensed consolidated interim financial statements ( Interim Report ) for the first half of 215 have been prepared in accordance with IAS 34 Interim Financial Reporting. The Interim Report should be read in conjunction with the consolidated financial statements as at December 31, 214. We followed the same accounting policies and methods of computation as compared with the most recent annual consolidated financial statements. Introduction of new and revised standards The accounting policies used in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group s annual financial statements for the year ending December 31, 214, except for the adoption of the following new or revised/amended standards and interpretations, effective as from January 1, 215: Standard/interpretation IAS 19 (amendment) defined benefit plans: employee contributions Annual Improvements to IFRSs Cycle Annual Improvements to IFRSs Cycle The adoption of these new or revised/amended standards and interpretations did not result in substantial changes to the Group s accounting policies since December 31, 214. The Board of Directors authorized the Interim Report for issuance on July 17, Currency exchange rates st half 215 1st half 214 average average average 1 EUR 1 GBP 1 USD 1 JPY

13 Notes to the condensed consolidated interim financial statements Abandon of euro cap in Switzerland The appreciation of the Swiss franc following the Swiss National Bank s decision to abandon its minimum exchange rate policy against the euro had a negative impact on the level of reported net assets and comprehensive income as disclosed in Financial Report 214 in note 38. The majority of assets and liabilities as well as income and expenses of the Group are denominated in euro. As a result of the EUR/CHF exchange rate decline by 13 percent, the translation into the Swiss reporting currency caused lower net sales in the amount of CHF 12 million, lower operating expenses of CHF 11 million and therefore a lower operating profit of CHF 1 million. The translation into the Swiss reporting currency reduced total assets by CHF 38 million whereof the highest impact has been in the positions fixed assets, inventories (both through other comprehensive income), cash and cash equivalent as well as short-term financial investments (CHF 6 million through profit and loss). The liabilities have been affected by CHF 25 million, mainly due to the impact on the pension provision (through other comprehensive income). As an overall result equity has been reduced by CHF 13 million (whereof CHF 7 million through other comprehensive income). 4. Number of employees 1st half 215 1st half Production Research and development Quality management Marketing and sales Administration and general Number of employees, end of period Average number of employees Seasonality, economic cycles In the past, the results varied from quarter to quarter. It is expected that these variations will continue in the future. The business of the Group is not exposed to pronounced seasonal cyclical patterns. 6. Financial income 1st half 215 1st half 214 Interest income Income from derivative financial instruments Other financial income Total financial income

14 Half-Year Report 215 Micronas Group 7. Financial expenses Interest portion of pension expense Interest portion of other discounted long-term provisions and liabilities Expenses from financial instruments at fair value through profit and loss Other financial expenses Total financial expenses 1st half st half Cash, cash equivalents and short-term financial cash deposits Derivative financial instruments Short-term financial cash deposits with a maturity of more than three months up to one year 1 Total short-term financial investments Short-term cash deposits have an initial maturity of three up to twelve months. Comparing to shorter terms the interest rates are generally higher. The short-term financial investments are entered into with banks and financial-institution counterparties, which are rated with uppermedium grade by Morgan Stanley, Moody s and Fitch ratings. Short-term financial cash deposits, beginning of period Additions/deductions Translation adjustment Short-term financial cash deposits, end of period Short-term financial cash deposits, end of period Cash and cash equivalents, end of period Cash, cash equivalents and short-term financial cash deposits, end of period Issued capital The issued and fully paid share capital of Micronas Semiconductor Holding AG comprises: Number Number Opening balance Exercise of share options Balance, end of period

15 Notes to the condensed consolidated interim financial statements Treasury shares Micronas announced in February 215, to carry out a share buy-back worth up to CHF 2 million. The buy-back program through an ordinary trading line has started on March 3, 215, and will end on December 31, 216, at the latest shares have been purchased at a total consideration of CHF () during the first half Financial instruments For all financial instruments which are not carried at fair value the difference between the carrying values and their fair values are not material. Fair value hierarchy When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2: Inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). The Group held the following financial instruments measured at fair value (): Total Level 1 Level 2 Level 3 Assets measured at fair value Available-for-sale financial assets Derivatives part of a hedging relationship Derivatives part of a hedging relationship consists in the first half 215 of short-term financial investments of CHF 257 () ( : CHF 788 ()) and of other long-term assets of CHF ( : CHF 147 ()). In the first half 215 and in 214, there were no transfers between level 1, level 2 and level 3 financial instruments. 15

16 Half-Year Report 215 Micronas Group Valuation techniques and significant unobservable inputs Type Valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Forward exchange contracts Forward exchange contracts are valued using a market comparison technique: The fair values are based on quoted or otherwise observable prices for similar instruments at the balance sheet date. Forward exchange contracts are included in level 2. n.a. n.a. Available-for-sale financial instruments The Group considers the present value of discounted cash flows using the risk-adjusted discount rates. Forecast annual revenue growth rate Forecast EBITDA Discount factor based on post-tax WACC The estimated fair value would increase (decrease) if: the annual revenue growth rate were higher (lower); the EBITDA were higher (lower); the discount factor was (higher) lower. Generally, a change in the annual revenue growth rate is accompanied by a directional similar change in EBITDA margin. Level 2 Forward exchange contracts designated as cash flow hedges At June 26, 215, the Group held foreign exchange contracts designated as cash flow hedges of expected future sales to customers. The effective portion of the gain or loss on the hedging instrument is recognized directly as other comprehensive income in the cash flow hedge reserve, while any ineffective portion is recognized immediately in profit or loss in financial expenses. The terms of the foreign exchange contracts have been negotiated to meet the terms of the expected future sales. The cash flow hedges of the expected future sales were effective at June 26, 215, and a loss of CHF 189 () (first half 214: a loss of CHF ()) has been recorded in other comprehensive income in respect of these contracts. Level 3 Reconciliation of fair values The following table shows a reconciliation from the opening balances to the closing balances for level 3 fair values Level 3 fair value, beginning of period Valuation loss included in OCI Level 3 fair value, end of period 1st half st half Any reasonably possible change in the assumptions relating to unobservable inputs since December 31, 214 would not lead to a significant change in fair value of the investment in X-FAB which is the only level 3 instrument held by the Group. The investment denominated in euro is measured at fair value by Micronas Semiconductor Holding AG and the foreign exchange loss of CHF () resulting from the fall in the EUR/CHF rate has been recorded in other comprehensive income. 16

17 Notes to the condensed consolidated interim financial statements Operating segments and geographical information Operating segments Automotive Industrial Group 1st half 215 Net sales in % of total net sales Margin in % of sales Operating profit in % of sales st half 214 Net sales in % of total net sales Margin in % of sales Operating profit in % of sales Geographical information Group 1st half 215 1st half 214 in % of total Net sales, net sales Net sales, in % of total net sales Europe Germany Switzerland Hungary Czech Republic France Rest of Europe Asia Japan China South Korea Rest of Asia America USA Rest of America Other Total net sales The sales information above is based on the invoicing destination of the customer. 17

18 Half-Year Report 215 Micronas Group 13. Share options Number of share options Weighted average exercise price Number of share options Weighted average exercise price Outstanding, beginning of period Issued Exercised Forfeited Outstanding, end of period In 215, options were granted on January 3. In 214, 12 options were granted on January 3 and 225 options were granted on July Group structure Effective February 2, 215, BEDI GmbH, Villach, Austria was liquidated. 15. Subsequent events On July 1, 215, 245 options were issued to certain members of the Management and certain key personnel at an exercise price of CHF 7. each. The options are exercisable between 218 and

19 Additional information Additional information Orders on hand Orders on hand, beginning of period Net sales Order intake Translation adjustments Orders on hand, end of period Book-to-bill 1st half st half

20 Editors: Concept, design and project management: frau.wolf MACHT KOMMUNIKATION, This document was first published on July 23, 215. Micronas Semiconductor Holding AG Technopark I Technoparkstrasse 1 I 85 Zurich I Switzerland Phone I Fax investor@micronas.com