Difficult past financial year – Significant benefits expected from takeover by TDK

• 2015 results slightly better than expected, sales, however, 15 percent lower than prior year, or 3 percent when calculated in euros
• Slightly positive EBIT margin (before exceptional items) for fiscal year 2015
• In its publication of the definitive interim result of February 16, 2016, TDK Magnetic Field Sensor G.K. announced an 82.57 per cent acceptance rate, and declared its tender offer successful pending fulfilment of certain offer conditions
• As the competence center for sensors within TDK Corporation, Micronas will develop innovative new products that combine TDK’s MR know-how with Micronas Group’s expertise in Hall sensors

Zurich, February 19, 2016 – In the course of fiscal year 2015 it became apparent that 2015 would be a difficult year for Micronas. At CHF 134.4 million, the Company’s net sales for fiscal 2015 were higher than had been predicted in the press release of October 22, 2015, but were still 15 percent lower than the 2014 figure. Sales and earnings were strongly influenced by a variety of negative factors. In January 2015, the Swiss National Bank decided to abandon the minimum exchange rate between the Swiss franc and the euro. This meant that figures in the income statement and balance sheet were lower after conversion into the Group’s accounting currency, the Swiss franc. The sharp decline in demand for cars in Japan, an important market for Micronas, weakened sales further in the year under review. On top of this, earnings were hit hard again in 2015 by the switch from 6- to 8-inch production, combined with the introduction of new manufacturing facilities and various new product launches and qualifications. Owing to the valuation of cash holdings denominated in foreign currencies, the net result was negative.

On December 17, 2015, TDK Corporation announced its intention to launch a takeover offer for all issued and outstanding Micronas shares in order to grow its magnetic sensor business. The Board of Directors of Micronas unanimously resolved to support TDK’s tender offer and to recommend that Micronas shareholders accept it. The Board of Directors and Management of Micronas firmly believe that the transaction proposed by TDK will bring considerable strategic, operational and financial benefits for Micronas.

In its publication of the definitive interim result on February 16, 2016, TDK Magnetic Field Sensor G.K. announced an acceptance rate of 82.57 percent, equivalent to a total of 23,867,354 Micronas shares, and declared the tender offer successful pending fulfilment of certain offer conditions.

The Micronas Group’s consolidated net sales for 2015 came to CHF 134.4 million, which is 15 percent lower than in the previous year. After adjusting for currency movements, calculated in euros, sales went down 3 percent. A gross margin of 27.4 percent of sales was achieved during the year under review, compared with 31.8 percent in the previous year. CHF 22.9 million was invested in research and development. As a percentage of sales, this R&D spending came to 17 percent. Operating profit before exceptional items amounted to CHF 0.5 million, down from CHF 6.4 million in 2014. The EBIT margin for the 2015 financial year was 0.4 percent of sales. Operating profit after exceptional items (expenses for the public tender offer by TDK) came to CHF -1.7 million.

The result for 2015 after financial income and taxes was a loss of CHF 12.2 million. This loss is due partly to the revaluation of euro-denominated cash holdings at Micronas Semiconductor Holding AG, which caused a book loss of CHF 3.7 million following the removal of the euro minimum rate. Earnings per share came to CHF -0.42. On December 31, 2015, Micronas reported cash, cash equivalents and short-term financial cash deposits of CHF 119.5 million. Shareholders' equity came to CHF 86.2 million, giving an equity ratio of 34 percent.

The share buy-back program announced on February 25, 2015, was carried out as planned and ended on December 15, 2015. A total of 1,493,838 shares, or 5.02 percent of total share capital, were repurchased.

The date of the 21st ordinary Shareholders’ Meeting of Micronas Semiconductor Holding AG will be announced in due course.

About Micronas
Micronas (SIX Swiss Exchange: MASN) the most preferred partner for sensing and control serves all major automotive electronics customers worldwide, many of them in long-term partnerships for lasting success. While the holding company is headquartered in Zurich (Switzerland), operational headquarters are based in Freiburg (Germany). Currently, the Micronas Group employs around 900 persons.

For further information
Susy Krucker
Investor Relations
Phone: +41 44 445 39 60
E-mail: investor@micronas.com