Ad-hoc | 16 February 2000 19:15

Ad hoc-Service: ELMOS Semiconductor AG EQ4ELM

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— ELMOS Semiconductor AG : Solid growth with excellent results Accelerated increase of net sales Net sales (in millions of DM or percent) IV Q 99 IV Q 98 (%) 1999 1998 (%) Total 45.3 34.5 31.4 169.3 139.3 21.5 from this Production 43.7 31.2 40.1 161.5 128.6 25.6 Development 0.8 1.7 -53.0 4.1 4.9 -16.6 Miscellaneous 0.8 1.6 -50,0 3.6 5.7 -36.0 A very good fourth quarter with net sales of 45.3 millions of DM completes an extraordinarily successful year. The net sales of the fourth quarter were increased by 31.4% compared to the same period of the previous year. This number is even higher than the average of the net sales growth rate of the total year. This is an indicator for an acceleration of net sales growth. Net sales of 169.3 millions of DM were the result of the whole of 1999, exceeding 1998 by 21.5%. In 1999, the share of net sales classified as “production” increased more than all other shares. The average growth rate of production net sales was 40,1% in the fourth quarter and 25.6% for the whole of 1999. The development of important projects was finalised and successfully taken into production. Expenses for development are more and more prefinanced by ELMOS and later, when series production starts, apportioned to production sales. This is another cause for the relative decrease of development sales. Steadily increasing internationalisation Regional distribution of net sales (in millions of DM) 1999 1998 (%) Germany 74.5 69.2 7.7 EU-countries 73.3 54.3 35.0 USA 12.5 10.6 17.9 Other countries 9.0 5.2 73.1 The tendency towards an internationalisation of activities, already visible in the third quarter, continues. The European Market, especially France, has achieved nearly the same net sales volume as our home market Germany. The USA market was augmented by 17.9%. Other countries, such as Asian and South American countries, reaching relatively low net sales, show the highest growth. Steadily growing incoming orders Incoming orders (in millions of DM) IV Q 99 IV Q 98 (%) 1999 1998 (%) 52 29 79.3 183 150 22.0 The number of incoming orders was increased by 79.3% compared to IV Q 98, and by 22.0% based on annual average . This is, beside net sales, another indicator for accelerated growth. The design wins of 1999 stand for a production volume of about 200 millions of DM for the complete lifecycle of the products. For automotive applications, the typical lifecycle is about 5 to 8 years. In the fourth quarter, incoming orders as well as design wins were considerably higher than expected. Excellent income situation Gross margin ( in millions of DM or percent) IV Q 99 IV Q 98 (%) 1999 1998 (%) millions DM 22.6 12.1 86.8 % 84.9 53.8 57.8% % of sales 50.0 35.3 41.7 50.2 38.7 29.7 We impressively fulfilled our strategy, which is carefully increasing the net sales and extraordinarily augmenting the income. The net sales growth rate of 31.4% is facing an income growth rate of 10.5 millions of DM or 86.8%. The gross margin, which is 50% of the net sales, increased by 41.7% compared to the same period of the previous year. For the year 1999, the gross margin was 84.9 millions of DM, exceeding the results of the previous year by 31.1 millions of DM or 57.8%. Operating income (in millions of DM or percent) IV Q 99 IV Q 98 (%) 1999 1998 (%) millions DM 10.7 2.7 296.3 % 45.3 17.7 156 % % of sales 23.5 7.7 205.2 26.8 12.7 111 The accumulated cost of marketing, administration as well as R&D increased to a level of 11.9 millions of DM in the fourth quarter 1999 in comparison to 9.5 millions of DM in IV Q 98. Despite of this absolute increase, the relative share of net sales decreased from 27.5% in 1998 to 26.3% in 1999. The operating income was improved by nearly 300% or by 8 millions of DM. In annual average, the operating income was augmented by 156% or by 27.6 millions of DM. Income before tax (in millions of DM or percent) IV Q 99 IV Q 98 (%) 1999 1998 (%) millions DM 11.5 2.7 325.9 % 42.9 16.5 160% % of sales 25.4 7,8 225,7 25.3 11.9 113 In the fourth quarter, the income before tax was increased by 325.9%, in annual average by 160%. The relative share of net sales of 25.4% corresponds to an improvement by 217.5% compared to the same period of the previous year. (in DM) IV Q 99 IV Q 98 1999 1998 Earnings per 0,71 0,06 1,63 0,44 share Tax expenses Tax expenses take into account the IPO costs of 11.2 millions of DM. In addition, accrued liabilities were taken into consideration. Following the German tax law, these reduce taxes. In order to obtain the announced tax rate of 25.6%, ELMOS will profit from the different possibilities in existence for use of the net income. Ende der Mitteilung