1st half 2012

Investor presentation
first half-year 2012
Conference Call
July 24, 2012, at 11.00 a.m. (CET)
1
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
Agenda
Overview
Markets
Products
Hall-effect sensors
Embedded controllers for smart actuators
Gas sensors
Customers
Financials
Summary
3
Micronas at a glance
Known and recognized in the automotive
and industrial business as a reliable global
acting partner for intelligent, sensor-based
system solutions

About 900 employees worldwide

Own wafer fab with 6” and 8” production line

Backend operation including testing and packaging

Zero ppm quality to ensure customer satisfaction

Commitment to environmental protection
4
Group structure and locations
Micronas Semiconductor Holding AG, Zurich, Switzerland
Micronas Ltd.
Glenrothes, Scotland
Headquarters
Test center, Production
Micronas Japan K.K.
Tokyo, Japan, Sales office
Micronas GmbH
Freiburg, Germany
Micronas Villach
Halbleiterentwicklungs GmbH
Villach, Austria
Research & Development
Marketing & Sales
Production
Research & Development
Micronas New Technologies
GmbH
Munich, Germany
Sales offices
across Europe
Sales office
Shanghai, China
Sales office
Detroit, USA
Research & Development
Sales
Distributor base all around the world
5
Micronas – first half-year 2012

Micronas continued its positive performance trend and can
look back on a good first half year

Net sales increased by 9 percent to 87 million compared to
previous first half-year

Gross margin rose to almost 40 percent

EBIT margin increased from 10 to 15 percent

Profit was up from CHF 1 to 7 million

Manufacturing areas in Freiburg ran above 80 percent
capacity

Short-time work at the Freiburg plant was terminated by end
of June 2012
6
Micronas – first half-year 2012, cont.

New Innovation Center was founded in order to boost the
innovative power

R&D and marketing activities were increased to further
strengthen our global market leader position

HAL 24xy linear Hall sensor family was released to fulfill the
increased demand for performance, safety and reliability

First volume productions of embedded controllers based on the
new QFN package line for automotive were shipped

GAS 86xyB – the second generation of the smallest and most
efficient multi-parametric gas sensor platform – was announced

CHF 0.05 per share was paid out to shareholders
7
Agenda
Overview
Markets
Products
Hall-effect sensors
Embedded controllers for smart actuators
Gas sensors
Customers
Financials
Summary
8
Automotive – passenger car registration
New passenger car registration for first half-year 2012
Registration
in Mil./units
Growth
(1st half 12/11)
8,0
57%
70%
7,0
60%
6,0
50%
5,0
40%
4,0
30%
3,0
15%
2,0
1,0
20%
9%
10%
1%
0%
0,0
-1,0
-7%
Western Europe
-10%
thereof
Germany
Source: VDA – Verband der Automobilindustrie, July 2012
USA
China
Japan
9
Market and technology drivers
Environmental
protection
Increased demand for high energy efficiency and CO2 reduction
needs optimized sensors and actuator solutions, e.g. for engines,
BLDC motors and HVAC systems
Reduced overall system cost enabled by highly integrated sensors
2. Economy and safety
Economy
and embedded controllers, e.g. increasing magnet costs can be
compensated by higher sensitivity
Safety
Increased safety demand drive growth for novel, intelligent and
redundant products and system solutions
Comfort and
lifestyle
High levels of functionality, low power and small form factor
enable new applications and comfort features
10
Automotive application segments
Powertrain
High accuracy sensors designed to
withstand harsh environments: Insensitive
to vibrations, temperature drift and dirt
Chassis
and body
Programmable sensor based solutions with
integrated communication links provide
flexibility
Safety
Proven history of meeting Automotive’s
highest quality standards. Expanding portfolio
addresses increasing safety requirements
11
Industrial application fields
Heavy machines /
factory automation
Highly reliable and robust sensors to meet
the demands for long lifetime within harsh
environments
Building and home
automation
Intelligent sensor and actuator solutions
for smart automation networks to enable
increased comfort and lifestyle
White goods /
home appliances
Wide range of cost-effective sensor
solutions for eco-friendly home appliances
at minimal size
12
Agenda
Overview
Markets
Products
Hall-effect sensors
Embedded controllers for smart actuators
Gas sensors
Customers
Financials
Summary
13
Hall-effect sensors – technology
Hall-effect sensors are the technology of choice for contact-less sensing.
Micronas, the pioneer of CMOS Hall sensors, continues to innovate in this field.
Introduction
 Contact-less
sensing improves system
reliability, especially in harsh environments
 CMOS
technology is the most cost-effective
method to realize Hall sensors
 High
levels of integration enable sensors to
configure to a wide range of applications
 Micronas
has a strong track record of
supplying sensors that meet the most
demanding quality standards
14
Hall-effect sensors – functions and applications
Micronas offers the broadest portfolio of Hall sensors for automotive and industrial
Switches
Linear
Current
Angular
throttle
flap
power
management
steering
angle
buckle switch
gas pedal
sensor
current
sensor
module
3D HAL uses licenses of
Fraunhofer Institute for
Integrated Circuits IIS.
roller shutter

Easy to implement
contact-less switch

Highly accurate
position detection

Precise angle detection
with a single sensor

Replacement of micro
switches

Replacement of
conventional
potentiometers

Replacement of
inductive or optical angle
encoders

Small form factor
contact-less current
transducer

Replacement of shunt
based solutions
15
Automotive and Hall-effect sensor markets
250
Vehicle production Mil./units
CAGR 2011 – 2016 = 11%
1.000
900
200
800
700
150
600
500
100
400
300
CAGR 2011 – 2016 = 6%
50
200
Hall-effect sensors value Mil./USD
1.100
100
0
0
2011
2012
2013
Vehicle production
Source: Strategy Analytics / isuppli / Micronas, January 2012
2014
2015
2016
Hall-effect sensors
16
Embedded controllers – technology
The actuator market is transitioning to BLDC motors. Micronas’ highly integrated
solutions enable cost-effective system implementation.
Introduction

Specialized high voltage, analog and embedded flash
CMOS processes uniquely serve the demanding
requirements of a BLDC system

Single package enables solutions to be realized in
space constrained applications

Micronas is uniquely positioned to combine two critical
aspects of motor commutation – embedded control
and Hall sensors – creating solutions that are
unmatched in terms of power consumption and
physical dimensions
17
Embedded controllers – applications
Adaptive intelligent control of electrical current or speed in Automotive and
Industrial applications.
Fans
Pumps
Specialized actuators

Seat and mirror adjustment

Window lifter

Engine cooling system

Fuel

Head light adjustment

HVAC

Oil

Active grill modules

Cooling (battery, LED)

Water (HVAC, coffee)

Flaps (HVAC, exhaust)
18
Automotive and BLDC motor markets
250
600
500
200
400
150
300
100
200
BLDC motors Mil./units
Vehicle production Mil./units
CAGR 2011 – 2016 = 19%
CAGR 2011 – 2016 = 6%
50
100
0
0
2011
2012
2013
Vehicle production
Source: Strategy Analytics, January 2012 / IMS Research, July 2011
2014
2015
2016
BLDC motors
19
– Gas sensing technology
Gas sensors become digital: Micronas mySENS® gas sensing technology to
overcome the limitations of existing technologies.
Introduction
 Digital
ambient sensor platform with:
 two
independent gas sensors
 integrated
relative humidity sensor
 integrated
temperature sensor
 Target
gases: detection of NO2, NH3, H2,
VOC, CO, CO2
 CCFET
sensor (Capacitive Coupled Field
Effect Transistor)
 Manufactured
in-house on Micronas latest
CMOS technology and open QFN package
20
– Gas sensing markets and applications
First digital gas sensor to diversify Micronas’ product portfolio and target markets.
Fire detection

Reduction of system size to
almost invisible

Improved false alarm
security

Long lifetime and low power
consumption
HVAC
Leakage
(Heating, Ventilation and Air Conditioning)


Comfort and energy
efficiency in building
automation
Integration of climate
control and air quality
in a single device

High sensitivity to ambient
trace gases

Broad dynamic range of
gas concentration

Robust against overdose
exposure
21
Agenda
Overview
Markets
Products
Hall-effect sensors
Embedded controllers for smart actuators
Gas sensors
Customers
Financials
Summary
22
Customer and distributor base
23
Agenda
Overview
Markets
Products
Hall-effect sensors
Embedded controllers for smart actuators
Gas sensors
Customers
Financials
Summary
24
Micronas Group – segment information
Mil./CHF
Automotive
Net sales
Gross margin
in % of sales
Operating profit (EBIT)
in % of sales
1st half 2012
1st half 2011
Automotive performance
Mil./CHF
100
81.0
33.0
40.8%
13.9
17.2%
72.6
25.9
35.7%
8.5
11.7%
80
60
Sales
40
EBIT
20
0
1st half 2011
Mil./CHF
1st half 2012
1st half 2012
1st half 2011
Sales by segments 1st half 2012
Other segments
Net sales
Gross margin
in % of sales
Operating profit (EBIT)
in % of sales
5.9
1.3
22.6%
-0.8
-13.5%
7.1
1.8
24.7%
-0.3
-3.9%
93%
7%
Others
Automotive
25
Segment Automotive – product lines
Mil./CHF
1st half 2012
1st half 2011
Change in %
Change in %
based in CHF
based in EUR
Hall-effect sensors
Controllers
76.1
4.9
65.2
7.4
17%
-34%
23%
-30%
Total
81.0
72.6
12%
18%
Sales by product lines 1st half 2012
94%
6%
Controllers
Hall-effect sensors
26
Micronas Group – regional information
Mil./CHF
1st half 2012 1st half 2011 Change in % Change in %
based in CHF
Europe
Asia
America
Sales total 1st half 2012
based in EUR
25.2
53.8
7.8
28.3
43.0
8.3
-11%
25%
-6%
-6%
32%
0%
Others
0.1
0.1
0%
0%
Total
86.9
79.7
9%
15%
62%
0%
Asia
9%
Europe
29%
America
Others
Sales in Europe 1st half 2012
Sales in Asia 1st half 2012
86%
56%
4%
Japan
10%
China
Others
9%
35%
Germany
France
Others
27
Micronas Group – order book
Mil./CHF
Orders on hand,
beginning of period
Net sales
Order intake
Translation adjustments
1st half 2012
1st half 2011
Book-to-bill
ratio
47.5
86.9
97.3
-0.5
62.7
79.7
61.6
-1.7
1,4
1,2
1,0
0,8
Orders on hand,
end of period
57.4
42.9
0,4
Book-to-bill
1.12
0.77
0,2
0,6
0,0
Increased orders on hand supported by customers extending their ordering horizon
28
Micronas Group – income statement
1st half 2011
1st half 2012
in % of Mil./CHF
in % of
Mil./CHF
net sales
Net sales
Gross margin
Research & development expenses
Sales & marketing expenses
Administrative & general expenses
Other operating inc./exp.
Operating profit before restructuring
86.9
34.3
-13.5
-4.9
-3.2
0.4
13.1
net sales
15.1%
79.7
27.7
-13.6
-4.2
-3.4
0.7
7.2
15.1%
1.0
8.2
39.6%
15.5%
5.6%
3.7%
0.5%
Restructuring
Operating profit (EBIT)
0.0
13.1
Financial income/expenses/FX net.
Pretax profit
Income taxes
Profit for the period
-5.5
7.6
-0.6
7.0
8.0%
-6.8
1.4
-0.1
1.3
EBITDA
18.8
21.6%
16.8
Earnings per share in CHF
0.24
8.7%
34.7%
17.0%
5.3%
4.3%
0.9%
9.0%
10.3%
1.7%
1.6%
21.1%
0.04
29
Micronas Group – balance sheet
29.6.2012
31.12.2011
Total non-current assets
Cash and cash equivalents
Other current assets
77.6
159.5
43.8
81.0
156.2
43.8
Total assets
280.9
281.0
136.4
48.6%
119.5
25.0
129.2
46.0%
123.1
28.7
Total liabilities
144.5
151.8
Total shareholders' equity and liabilities
280.9
281.0
1.2019
1.2162
Mil./CHF
Total shareholders' equity
in % of total assets
Total long-term liabilities
Total current liabilities
Exchange rate EUR/CHF
Solid financial basis with total cash of CHF 160 million and shareholders’ equity
of CHF 136 million or 49 percent
30
Micronas Group – trade net working capital
Mil./CHF
Inventories
Accounts receivable
Accounts payable
Trade net working capital
Exchange rate EUR/CHF
29.6.2012
31.12.2011
23.3
16.0
24.5
15.7
7.0
9.4
32.3
30.8
1.2019
1.2162
The trade net working capital represents 19 percent of last 12 months net sales
31
Micronas Group – cash flow statement
Mil./CHF
1st half 2012 1st half 2011
Cash at the beginning of the period
156.2
165.4
Cash flow from operating activities
12.2
6.2
Cash flow from investing activities
-3.3
-13.6
Cash flow from financing activities
-4.6
-3.0
thereof distribution to shareholders
-1.5
0.0
thereof repayment of long-term liabilities
-3.1
-3.0
Exchange effect on cash
-1.0
-4.4
3.3
-14.8
159.5
150.6
Change in cash
Cash at the end of the period
Positive cash flow of CHF 3 million results in total cash of CHF 160 million
32
Agenda
Overview
Markets
Products
Hall-effect sensors
Embedded controllers for smart actuators
Gas sensors
Customers
Financials
Summary
33
Summary

Micronas continued its positive performance trend and can look
back on a good first half year

With its excellent product portfolio and the consistent efforts to
ensure quality and reliable delivery, Micronas is the global market
leader for Automotive hall sensors

Micronas is strongly investing in the development of new hall
sensors for multi-dimensional magnetic field detection

Micronas is expanding its product portfolio by adding embedded
controllers for smart actuators and gas sensors

Micronas has excellent access to future technologies

EBIT-margin in the first half year reached 15 percent thanks to
gross margin improvement
34
Guidance for full year 2012
Despite the uncertain economic outlook, the Board of
Directors and Management expect global demand for
automotive products to hold firm in the second half of
the year.
They expect to see:

net sales of around CHF 170 million

EBIT margin of about 15 percent
35
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