Melexis Q4 and FY 2022 results – Full year sales of 836.2 million EUR

Press release - Regulated Information

Intermediate declaration by the Board of Directors
Ieper, Belgium – February 1, 2023, 07.00 hrs CET

Sales for the full year 2022 were 836.2 million EUR, an increase of 30% compared to the previous year. The EUR/USD exchange rate evolution had a positive impact of 5% on sales compared to 2021. The gross result was 374.7 million EUR or 44.8% of sales, an increase of 37% compared to 2021. R&D expenses were 10.8% of sales, G&A was at 4.9% of sales and Selling was at 2.0% of sales. The operating result was 226.5 million EUR or 27.1% of sales, an increase of 53% compared to 148.4 million EUR in 2021. The net result was 197.2 million EUR or 4.88 EUR per share, an increase of 50% compared to 131.1 million EUR or 3.25 EUR per share in 2021.

Sales for the fourth quarter of 2022 were 223.9 million EUR, an increase of 35% compared to the same quarter of the previous year and an increase of 2% compared to the previous quarter. The EUR/USD exchange rate evolution had a positive impact of 5% on sales compared to the same quarter of last year and no impact compared to the previous quarter. The gross result was 99.5 million EUR or 44.5% of sales, an increase of 41% compared to the same quarter of last year and an increase of 1% compared to the previous quarter. R&D expenses were 11.4% of sales, G&A was at 4.9% of sales and Selling was at 2.3% of sales. The operating result was 57.9 million EUR or 25.8% of sales, an increase of 53% compared to the same quarter of last year and a decrease of 6% compared to the previous quarter. The net result was 52.2 million EUR or 1.29 EUR per share, an increase of 57% compared to 33.3 million EUR or 0.82 EUR per share in the fourth quarter of 2021 and an increase of 7% compared to the previous quarter.

Dividend

The Board of Directors approved on January 27th, 2023 to propose to the Annual Shareholders meeting to pay out over the result of 2022 a total dividend of 3.50 EUR gross per share. This amount contains an interim dividend of 1.30 EUR per share which was paid in October 2022 and a final dividend of 2.20 EUR per share which will be payable after approval of the Annual Shareholders meeting. The Melexis shares will start trading ex coupon on May 10, 2023 (opening of the market). The record date is May 11, 2023 (closing of the market) and the dividend will be payable as from May 12, 2023.

Outlook

Melexis expects sales in the first quarter of 2023 to be in the range of 225 to 230 million euro. For the full year 2023, Melexis expects a sales increase between 11% and 16%, with a gross profit margin around 45% and an operating margin around 26% at the midpoint of the sales guidance, all taking into account a EUR/USD exchange rate of 1.08. For the full year 2023, Melexis expects CAPEX to be around 70 million EUR.

Business comment – Marc Biron, CEO:

“Landing at a 30% sales increase compared with 2021, despite the continued supply constraints, 2022 was once again a record year for Melexis. Our growth was manifestly driven by electrification as well as a significant increase in body, chassis and safety applications. Demand for automotive products supporting all these applications is still soaring, whereas the limited wafer supply continues to necessitate the allocation of the products available.

In 2022, the outperforming product lines were current sensors, embedded drivers, magnetic position sensors and temperature sensors. Melexis’ current sensors remain highly sought-after in inverter, on-board charging and DC/DC converter applications. In terms of body applications, the market for embedded drivers supporting thermal management in electric vehicles has been growing at a fast pace. Increased sensor content in safety applications contributed to the growth of our magnetic position sensors, and our temperature sensors are especially successful in body temperature monitoring applications.

Sales to automotive customers represented 91% of total sales in the fourth quarter of 2022 and 90% of total sales in the full year 2022. The portion of standard products (ASSPs) represented 73% of total sales in the fourth quarter of 2022 and 74% of total sales in the full year 2022.

In 2022, we launched 16 new products. These included an embedded driver for oil pumps, engine cooling fans and positioning actuators for thermal valves which are crucial in electric vehicles; a current sensor that measures voltage, current and temperature for battery monitoring in electric vehicles and a magnetic position sensor offering state-of-the-art sensing for steer-by-wire systems as well as for thermal valves.

As we look to 2023 and beyond, the underlying trends will continue to generate new opportunities that will contribute to our growth. We would like to especially highlight intelligent lighting, DC fast charging, EV heat pump and expanding x-by-wire applications, all supported by our latest-generation sensors and drivers.

Our accelerated investment in R&D aiming to address new applications and, as announced on January 16th, the expansion of our Malaysian facility, doubling its probing capacity, will bolster up the solid long-term demand for Melexis semiconductors.”

The statutory auditor PwC Bedrijfsrevisoren BV has confirmed that the audit, which is substantially complete, has not to date revealed any material misstatement in the draft consolidated accounts, and that the accounting data reported in the press release is consistent, in all material respects, with the draft consolidated accounts from which it has been derived.

Financial Calendar

• Publication Q1 Results 2023: April 26, 2023 (at 7 hrs CET)
• Annual Shareholders Meeting: May 9, 2023
• Dividend pay date: May 12, 2023 (ex coupon on May 10, 2023)
• Publication Q2 Results 2023: August 2, 2023 (at 7 hrs CET)
• Publication Q3 Results 2023: October 25, 2023 (at 7 hrs CET)
• Publication FY 2023 Results: February 7, 2024 (at 7 hrs CET)

For more information:
Investor Relations
Phone: +32 13 67 07 79
Email: investor@melexis.com

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