Micronas Semiconductor Holding AG

Currency effects hurt first quarter sales and results

Announcement according to SIX adhoc publication article 53 KR

Zurich (pta006/23.04.2015/07:00) - Key points:

- Sales down on fourth quarter in Swiss franc terms; 6 percent growth after adjusting for currency movement - Negative net result owing to euro losing value against the Swiss franc - Sales forecast of CHF 71 million for first half of 2015 confirmed; EBIT margin expected to be between 3 and 4 percent

In the first quarter of 2015 income statement and balance sheet figures were pushed lower by their conversion into the Group's currency of account, the Swiss franc, owing to the removal of the minimum exchange rate between the euro and the franc.

Consolidated first quarter 2015 net sales at Micronas Group reached CHF 35.7 million. This is a fall of 8.1 percent compared with the fourth quarter of 2014. After adjusting for currency movements, sales went up 6 percent quarter on quarter. Sales by the Automotive segment reached CHF 33.4 million, which is 8.5 percent lower than in the fourth quarter of 2014. After adjusting for currency movements, however, there was a rise of 5 percent. In the Industrial segment, sales came to CHF 2.3 million, which is a fall of 2.3 percent. After currency adjustment, though, a 12 percent rise was recorded.

Micronas Group's gross margin for the first quarter of 2015 was 27.8 percent of sales, compared with 34.1 percent in the previous quarter. The margin was influenced negatively in the first quarter by the reduction in inventories, which was designed to improve delivery performance. Operating profit (EBIT) was down slightly from the previous quarter's CHF 1.4 million to CHF 1.3 million; the first-quarter EBIT margin was 3.7 percent - unchanged on the previous quarter.

After financial income and taxes, this resulted in a loss of CHF 4.4 million for the first quarter of 2015. As already communicated in February 2015, this loss is mainly due to the valuation of euro-denominated cash holdings at Micronas Semiconductor Holding AG, which led to a book loss of CHF 6.0 million following the removal of the EUR-CHF minimum rate. Consequently, Micronas Group posted a loss per share of CHF 0.15 in the first quarter of 2015.

Compared to the fourth quarter of 2014, cash, cash equivalents and short-term financial cash deposits fell by CHF 18.0 million to CHF 133.3 million, mainly because of exchange rate effects. Shareholders' equity came to CHF 83.9 million, giving an equity ratio of 31.8 percent, compared with 36.9 percent in the previous quarter. This fall was primarily due to the exchange rate related valuation of intercompany loans of an equity nature. The fact that pension provisions were calculated using a lower discount rate also had an effect.