Micronas Group posts excellent half-year results (PR17)

July 25, 2000 - Micronas Semiconductor Holding AG

The Micronas Group has put in a very good performance for the first six months of the current financial year. Consolidated net sales for the period under review were up 51.4 percent on the figure posted for the first half of 1999 at CHF 216.7 million. Net profit went up from CHF 5.5 million to CHF 32.6 million and the company's net profit margin on sales came to 15 percent. Earnings per share improved from CHF 3.39 to CHF 15.25 by half-year comparison. Sales of CHF 455 million and a net profit of CHF 55 million are forecast for the 2000 financial year as a whole.

The second quarter of the year brought a further intensification of the dynamic sales and earnings performance that has been evident for the last few quarters. Consolidated net sales for the first half of 2000 came to CHF 216.7 million, 51.4 percent higher than the CHF 143.1 million recorded for the equivalent period in 1999. Both of the Micronas Group's divisions contributed to the strong sales growth. The Consumer Division saw sales go up by 64.6 percent from CHF 107.8 million to CHF 177.4 million, while the Automotive Division enjoyed an 11.3 percent rise on the equivalent figure last year from CHF 35.3 million to CHF 39.3 million. Sales were up significantly in all three of the Micronas Group's key markets, Europe, Asia and the USA.

Strong rise in earnings
At CHF 49.5 million, operational earnings were almost five times higher than the CHF 10.3 million recorded in the first half of 1999. After taking account of interest pay-ments and tax, the first half of 2000 produced net earnings of CHF 32.6 million. This result compares with CHF 5.5 million for the first six months of 1999. The net profit margin on sales reached 15.0 percent. Earnings per share were also up sharply from CHF 3.39 to CHF 15.25.

Solid equity capital base
The secondary listing of Micronas shares on Frankfurt's Neue Markt a year ago has greatly increased the stock's liquidity and helped to broaden the shareholder base still further. The Index Commission of the SWX Swiss Exchange recently acknowledged this development, as well as the sustained increase in the Micronas Group's stock market capitalization, by reallocating Micronas from the small cap index to the mid-cap index for more highly capitalized stock.

In the middle of the year, Micronas's equity capital came to CHF 194.1 million. Its equity ratio of 44.6 percent ensures that the Group will have the necessary room for maneuver for further growth.

Very good prospects
The sales and earnings dynamic will continue. Forecasts for the current business year have been upgraded on the basis of the excellent first year and the positive outlook for the remaining months of 2000. For the financial year as a whole we are expecting sales in the region of CHF 455 million and net earnings of around CHF 55 million.

Note:
The detailed letter to shareholders of the Micronas Group on the first half of 2000 will be sent to you on 18 August 2000 as previously announced.