Elmos Semiconductor AG: Positive development of sales and earnings in 2017

According to its preliminary, unaudited figures for 2017, Elmos Semiconductor AG (FSE: ELG) has fulfilled its forecast and exceeded the expected EBIT margin.

Sales increased by 9.5% to 250.4 million Euro. The EBIT margin of 15.3%, or 38.4 million Euro, significantly exceeded the forecast of more than 12% published in July 2017. This was partly due to increased production efficiency, which resulted in a gross margin of 43.9% (2016: 42.3%). Lower operating costs of 29.2% of sales (2016: 32.7%) and an increase in other operating results due to several one-off effects (2017: 2.9 million Euro; 2016: 1.0 million Euro) also contributed to the higher EBIT.

Capital expenditures for property, plant and equipment and intangible assets, less capitalized development expenses, amounted to 14.9% of sales in 2017. The majority of investment was related to the expansion of test operations to support further growth. Due to this investment and the announced inventory build up, adjusted free cash flow* amounted to -5.2 million Euro.

Assuming a continued positive economic environment, Elmos expects year-on-year sales growth of 8% to 12% in the current year. In 2018, Elmos expects an EBIT margin of between 13% and 17%. The company will continue to drive forward measures for further growth in the current fiscal year.

As in the previous year, capital expenditures for property, plant and equipment and intangible assets, less capitalized development expenses, will amount to less than 15% of sales. Due to continuing investment in the growth of the company, we expect Elmos to report negative adjusted free cash flow in 2018.

The forecast is based on an exchange rate of 1.20 US Dollar/Euro.

* Cash flow from operating activities less capital expenditures for/plus disposal of intangible assets and property, plant and equipment.

Preliminary figures for 2017 will be published on February 15, 2018. The publication of final figures and the full Annual Report 2017 is scheduled for March 14, 2018. The analyst conference will be held on February 15, 2018 (11:30 a.m. CET).

Please refer to the Annual Report 2016 of Elmos Semiconductor AG at www.elmos.com for more details on the key figures used.

About Elmos Semiconductor AG

Elmos develops, produces and markets semiconductors and sensors, primarily for use in the automotive industry. Our components communicate, measure, regulate and control safety, comfort, powertrain and network functions. For over 30 years, Elmos innovations have been bringing new functions to life and making mobility worldwide safer, more comfortable and more energy efficient.

Notice

This release contains forward-looking statements that are based on assumptions and estimates made by the Elmos management. Even though we assume the underlying expectations of the forward-looking statements to be realistic, we cannot guarantee the expectations will prove right. The assumptions may carry risks and uncertainties, and as a result actual events may differ materially from the forward-looking statements. Among the factors that could cause such differences are changes in general economic and business conditions, fluctuations of exchange rates and interest rates, the introduction of competing products, lack of acceptance of new products, and changes in business strategy. Elmos neither intends nor assumes any obligation to update its statements with respect to future events.

Contact:
Elmos Semiconductor AG
Thalea Willms, Head of Investor Relations, Fon: +49231?7549?273
Mathias Kukla, Press Relations, Fon: +49231?7549?199
Email: invest@elmos.com