Micronas QR 1 08 · Micronas started the 2008 business year in line with expectations. The restructuring process, begun in autumn 2007, made more rapid progress in the first quarter

Quarterly Report 1/2008

Transparency2

212-631-08_Quartalsbericht_1-08 11.04.2008 10:21 Uhr Seite 1

Quarterly Report 1/2008 Micronas Group

Contents

Letter to shareholders 3

Aktionärsbrief 6

Interim Report 9 – 12

Notes on the interim financialstatements 28.3.2008 12 –14

Additional information 14 –15


3

Key figures at a glanceQ1/2007

CHF 1000Q4/2007

CHF 1000Q1/2008

CHF 1000

Net salesOperating loss before impairment and restructuringImpairment and restructuringEBITEBITDALoss for the periodEarnings per share in CHFShareholders’ equityEquity ratio in percentNet cashCash flow from operating activities

169 582– 3 809

0– 3 80912 845– 7 751

– 0.26356 423

55.5264 144– 10 722

173 803– 10 017– 59 525– 69 542– 31 864– 60 557

– 2.06380 697

54.9291 57640 350

181 180– 19 968

0– 19 968

3 217– 10 008

– 0.34903 472

75.9244 32739 732

Ladies and Gentlemen

Micronas started the 2008 business year in line with

expectations. The restructuring process, begun in

autumn 2007, made more rapid progress in the first

quarter of 2008 than originally planned. As a result,

the operating loss for the first quarter is at the

lower end of the forecast range. The roadmap for

the new Consumer products was well-received

by our customers. The refocusing of the research

and development activities and the streamlining

of the sales organization are in the implementation

phase and ahead of schedule. Micronas has

discontinued its IPTV set-top box activities for

telecoms applications; most of the employees

working in this sector have now left the Company.

Incoming orders in the Consumer division during

March were disappointing, and this will have a

negative impact on the course of business in the

second quarter.

Consolidated net sales for the first quarter

of 2008 amounted to CHF 169.6 million; this

was, as expected, 2.4 percent lower than in the

fourth quarter of 2007. The operating profit

before depreciation and amortization (EBITDA)

was CHF 12.8 million. The operating loss before

exceptional items decreased by 62.0 percent to

CHF 3.8 million, despite a 340 base point reduction

in the margin. The restructuring measures resulted

in a reduction in operating costs of about

CHF 10.0 million in the first quarter or 15.0 percent

of the previous-quarter costs. The operating loss

(EBIT) was CHF 3.8 million, compared with CHF

69.5 million in the previous quarter. The loss

for the reporting period was CHF 7.8 million, which

equates to earnings per share of CHF – 0.26.

The Automotive division made a somewhat

subdued start to the new year owing to currency

translation factors. Sales of CHF 53.7 million came

in 2.9 percent lower than in the previous quarter.

As previously announced, it was not possible to

maintain the extremely high EBIT margin of

27.3 percent achieved in the previous quarter;

however, it was still a respectable 24.8 percent in

the first quarter, corresponding to an operating

profit (EBIT) of CHF 13.3 million.

At the ”embedded world“ trade show in Nuremberg

in February, we unveiled our easyLIN product

line for smart sensor and actuator applications,

developed specially for LIN bus applications.

Modern cars and trucks have several LIN bus

modules which combine intelligent sensors and

control actuators for window lifters, windshield

wipers and many other functions. Our product lines

simplify the development and reduce the costs of

Letter to shareholders


4

Employees by activity

LIN bus modules by integrating all logic functions,

peripheral modules, interfaces and a LIN bus

interface in a single component.

Also newly launched, the HAL 28xy special Hall-

effect sensor family for automotive and mechatronic

applications has a microcontroller, a temperature

sensor, more advanced on-chip compensation and

a digital interface. The HAL 28xy sensor family

is destined for price-sensitive applications such

as systems for determining the seat position or

the fuel status. The demand for high-performance

controllers and sensors will grow significantly in

the coming years because sophisticated engine and

gearbox management will be essential to meeting

future requirements regarding exhaust emission

limits. Manufacturers have to optimize every

single component, and will replace more and more

mechanical sensors through contactless ones.

The continuing high demand for intelligent, light-

weight and low-cost electronic components

will give further impetus to the Automotive

division. Inquiries about new projects, also

from previously reticent customers, indicate that

Micronas is well-positioned in the international

market.

The Consumer division is still greatly affected

by the restructuring process. Sales in the first

quarter of 2008 totaled CHF 115.9 million, some

2.2 percent down on the previous quarter in

line with expectations. The operating loss before

impairment and restructuring decreased by

31.9 percent to CHF 17.1 million. The restructuring

program initiated in autumn 2007 is proceeding

successfully; significant cost reductions were

already apparent in the first quarter of 2008. Our

new products were well-received by customers,

which is promising in terms of gaining further

market share. However, the crisis in the financial

markets has prompted the first uncertainties about

the general growth expectations for 2008.

The Consumer division continues to operate under

the influence of a highly competitive market

environment. In the area of flat-panel screens,

technology eliminating film judder and motion blur

is rapidly gaining acceptance. Both effects are

covered by the Micronas product FRC-M, the fourth

generation of the Micronas truD technology.

A number of manufacturers have launched full-HD

TV sets with LCD displays, based on the Micronas

VCT product family. These single-chip solutions

offer manufacturers all the necessary system

components in a single package.

Following the announcement by Toshiba, in February

2008, that it was ending production and further

457 Research and development

310 Marketing and sales

157 Administration and general

1018 Production

38 Quality management



5

Sales by regions

in million CHF

98.3 Europe64.5 Asia

6.0 America 0.8 Other

115.9 Consumer

53.7 Automotive

Sales by segments

in million CHF

development of HD-DVD technology and equipment,

the Blu-ray Disc is effectively the winner of the

format war for the digital optical disc storage

medium. The decision in favor of the Blu-ray

standard finally ends the uncertainty for consumers

and should lead to increased demand for HD TVs

and related equipment. This development also

opens up interesting possibilities for Micronas,

particularly in the area of products for perfect

home-cinema sound, with the Micronas MSP audio

platform.

Utilization of installed machine capacity at the

Freiburg waferfab facility averaged 95 percent in the

reporting period. Technology-related demand was

covered by external wafer foundries. A priority in

relation to ongoing projects was cost reduction, for

example by improving yields and optimizing process

flows.

At the 13th ordinary Shareholders’ Meeting, held

on March 7, 2008, at the World Trade Center in

Zurich, the Micronas shareholders approved all

the proposals of the Board of Directors. The Board

of Directors would like to take this opportunity

to thank shareholders for their trust. The sitting

members Heinrich W. Kreutzer and Harald Stanzer

were re-elected as members of the Board of

Directors for a further term of office of three

years.

Dr.Thomas Lustenberger

ChairmanDr. Wolfgang Kalsbach

Chief Executive Officer

Letter to shareholders

For the second quarter of 2008, Micronas

expects sales of between CHF 130 and 140 million

and an operating loss (EBIT) between CHF 20

and CHF 25 million. The Consumer division will

contribute sales of between CHF 75 and 85 million.

Micronas expects the Automotive division to

generate sales of around CHF 55 million.

April 17, 2008


Sehr geehrte Damen und Herren

Micronas ist erwartungsgemäss ins Jahr 2008

gestartet. Der im Herbst 2007 begonnene

Restrukturierungsprozess kam im ersten Quartal

2008 rascher als ursprünglich geplant voran.

Entsprechend liegt der Betriebsverlust am unteren

Ende unserer Prognose. Unsere Kunden haben die

Roadmap für die neuen Consumer-Produkte positiv

aufgenommen. Die Fokussierung der Forschungs-

und Entwicklungsabteilung und die Straffung der

Verkaufsorganisation sind in der Umsetzungsphase

und im Zeitplan voraus. Bei den IPTV-Set-Top-Boxen

für Telco-Anwendungen wurden die Aktivitäten

eingestellt und das Gros der in diesem Bereich

beschäftigten Mitarbeiter hat in der Zwischenzeit

das Unternehmen verlassen. Enttäuschend verlaufen

ist der Bestellungseingang im Bereich Consumer

in den Märzwochen, was sich negativ auf den

Geschäftsverlauf im zweiten Quartal auswirken

wird.

Der konsolidierte Netto-Umsatzerlös betrug im

ersten Quartal 2008 CHF 169.6 Millionen und lag

damit erwartungsgemäss um 2.4 Prozent tiefer als

im vierten Quartal 2007. Der Betriebsgewinn vor

Abschreibungen und Amortisationen (EBITDA) lag

bei CHF 12.8 Millionen. Der Betriebsverlust vor

Sondereinflüssen verringerte sich trotz einer um

340 Basispunkte tieferen Marge gegenüber dem

Vorquartal um 62.0 Prozent auf CHF 3.8 Millionen.

Die eingeleiteten Restrukturierungsmassnahmen

führten im ersten Quartal zu einer Einsparung bei

den operativen Kosten von rund CHF 10.0 Millionen

oder 15.0 Prozent der Vorquartalskosten. Der

Betriebsverlust (EBIT) betrug CHF 3.8 Millionen, im

Vorquartal CHF 69.5 Millionen. Der Verlust der

Geschäftsperiode betrug 7.8 Millionen, was einem

Ergebnis pro Aktie von CHF – 0.26 entspricht.

Der Bereich Automotive ist währungsbedingt etwas

verhalten ins neue Jahr gestartet. Der Umsatz war

mit CHF 53.7 Millionen gegenüber dem Vorquartal

um 2.9 Prozent rückläufig. Wie angekündigt konnte

die im Vorquartal erwirtschaftete äusserst hohe EBIT-

Marge von 27.3 Prozent nicht gehalten werden,

sie betrug im ersten Quartal jedoch noch immer

respektable 24.8 Prozent, was einem Betriebs-

gewinn (EBIT) von CHF 13.3 Millionen entspricht.

An der Messe „embedded world“, welche im

Februar in Nürnberg stattfand, stellten wir

der Öffentlichkeit unsere easyLIN-Produktlinie für

intelligente Sensor- und Aktuatorapplikationen vor,

die speziell für LIN-Bus-Applikationen entwickelt

wurden. Moderne PKW und LKW enthalten mehrere

LIN-Bus-Module, die intelligente Sensoren verbinden

und Aktuatoren für Fensterheber, Scheibenwischer

und viele andere Funktionen steuern. Unsere

Produktlinien vereinfachen die Entwicklung und

senken die Kosten von LIN-Bus-Modulen, da sie in

einem einzigen Bauelement alle Logikfunktionen,

Peripheriemodule, Schnittstellen und ein LIN-Bus-

Interface enthalten.

6

Quartalsbericht 1/2008 Micronas Gruppe

Abschluss auf einen BlickQ1/2007

CHF 1000Q4/2007

CHF 1000Q1/2008

CHF 1000

Netto-UmsatzerlöseBetriebsverlust vor Wertminderungen und RestrukturierungWertminderungen und RestrukturierungEBITEBITDAVerlust der GeschäftsperiodeErgebnis pro Aktie in CHFEigenkapitalEigenkapitalquote in ProzentFlüssige Mittel, nettoCash Flow aus Geschäftstätigkeit

169 582– 3 809

0– 3 80912 845– 7 751

– 0.26356 423

55.5264 144– 10 722

173 803– 10 017– 59 525– 69 542– 31 864– 60 557

– 2.06380 697

54.9291 57640 350

181 180– 19 968

0– 19 968

3 217– 10 008

– 0.34903 472

75.9244 32739 732


Die ebenfalls neu lancierte Hall-Effekt-Sonder-

familie HAL 28xy für Automotive- und Mechatronik-

applikationen enthält einen Mikrocontroller, einen

Temperatursensor, eine weiterentwickelte On-Chip-

Kompensation sowie eine digitale Schnittstelle.

Die Sensorfamilie HAL 28xy ist prädestiniert für

preissensitive Applikationen, wie etwa Systeme

zur Erfassung der Sitzposition oder zur Ermittlung

des Benzinfüllstandes. Der Bedarf nach leistungs-

fähigen Steuergeräten und Sensoren wird in

den nächsten Jahren beträchtlich zunehmen, da nur

mit aufwändigem Motor- und Getriebemanagement

die künftigen Abgasgrenzwerte eingehalten werden

können. Die Hersteller müssen jede einzelne

Komponente optimieren und werden deshalb

immer mehr mechanische Sensoren durch kontakt-

lose ersetzen.

Der anhaltend grosse Bedarf nach intelligenten,

leichten und kostengünstigen Elektronikkomponenten

wird dem Bereich Automotive weiterhin positive

Impulse geben. Anfragen für neue Projekte, auch

von bisher zurückhaltenden Kunden, zeigen, dass

Micronas im internationalen Markt gut positioniert

ist.

Der Bereich Consumer ist noch stark vom

Restrukturierungsprozess geprägt. Der Umsatz

betrug im ersten Quartal 2008 CHF 115.9 Millionen

und lag damit erwartungsgemäss um 2.2 Prozent

unter dem Vorquartal. Der Betriebsverlust vor Wert-

minderungen und Restrukturierungen verringerte

sich um 31.9 Prozent auf CHF 17.1 Millionen.

Die im Herbst 2007 eingeleitete Restrukturierung

verläuft erfolgreich und führte bereits im ersten

Quartal 2008 zu namhaften Kostenreduktionen.

Kundenseitig sind unsere neuen Produkte gut

aufgenommen worden, was uns hinsichtlich des

Gewinns von weiteren Marktanteilen positiv stimmt.

Als Folge der Finanzmarktkrise kommen im Markt

allerdings erste Zweifel bezüglich der allgemeinen

Wachstumserwartungen für 2008 auf.

Der Geschäftsbereich Consumer steht nach wie

vor unter dem Einfluss eines sehr kompetitiven

Marktumfelds. Bei den Flat-Panels setzen sich

sehr rasch jene Technologien durch, welche die

Bildqualität bezüglich Bildruckeln und Bewegungs-

unschärfen verbessern. Beide Effekte werden vom

Micronas Produkt FRC-M, der vierten Generation

der Micronas truD-Technologie, abgedeckt.

Verschiedene Hersteller haben Full-HD-TV-Geräte

mit LCD-Bildschirm lanciert, die auf der VCT-

Produktfamilie von Micronas aufbauen. Mit

diesen Single-Chip-Lösungen erhalten die Hersteller

die benötigten Systemkomponenten aus einer

Hand.

Nachdem Toshiba im Februar 2008 die Einstellung

der Produktion und die Weiterentwicklung der

HD-DVD-Technik – einschliesslich der Geräte –

angekündigt hat, gilt die Blu-ray Disc als Sieger im

Formatkrieg für das digitale optische Speicher-

7

Mitarbeiter nach Tätigkeit

457 Forschung und Entwicklung

310 Marketing und Vertrieb

157 Verwaltung

1018 Produktion

38 Qualität

Aktionärsbrief


8

Dr.Thomas Lustenberger

PräsidentDr. Wolfgang Kalsbach

Chief Executive Officer

Umsatz nach Regionen

in Mio. CHF

98.3 Europa64.5 Asien

6.0 Amerika 0.8 Sonstige

115.9 Consumer

53.7 Automotive

Umsatz nach Segmenten

in Mio. CHF

Quartalsbericht 1/2008 Micronas Gruppe

medium. Nach dem Entscheid für den neuen

Blu-ray-Standard ist die Unsicherheit für die

Konsumenten endlich beseitigt, und es wird

erwartet, dass die Nachfrage nach HD-TVs und

den zugehörigen Geräten zunehmen wird. Diese

Entwicklung eröffnet auch für Micronas interessante

Möglichkeiten, insbesondere bei den Produkten für

den perfekten Home-Cinema-Sound mit der

Micronas MSP-Audio-Plattform.

Die Auslastung der installierten Maschinenkapazität

in der Freiburger Waferfab lag im Berichtszeitraum

durchschnittlich bei 95 Prozent. Technologiebedingter

Bedarf wurde über externe Waferfoundries gedeckt.

Ein Schwerpunkt bei den laufenden Projekten lag

in der Kostenreduzierung, wie zum Beispiel in der

Verbesserung der Ausbeutung und Optimierung von

Prozessabläufen.

An der 13. ordentlichen Generalversammlung,

welche am 7. März 2008 im World Trade Center in

Zürich durchgeführt wurde, stimmten die Micronas

Aktionäre sämtlichen Anträgen des Verwaltungsrats

zu. Der Verwaltungsrat möchte sich auf diesem

Weg für das entgegengebrachte Vertrauen bei

den Aktionären bedanken. Die beiden bisherigen

Verwaltungsräte Heinrich W. Kreutzer und Harald

Stanzer wurden für eine weitere Amtsdauer von drei

Jahren als Mitglieder des Verwaltungsrats wieder-

gewählt.

Für das zweite Quartal rechnet Micronas mit

einem Umsatz zwischen CHF 130 und 140 Millionen

und einem Betriebsverlust (EBIT) zwischen CHF 20

und CHF 25 Millionen. Der Umsatzbeitrag des

Bereichs Consumer wird zwischen CHF 75 und

85 Millionen betragen. Für den Bereich Automotive

erwartet Micronas einen Umsatz von rund

CHF 55 Millionen.

17. April 2008


Interim Report

9

Consolidated profit and loss statement

Q1/2007

CHF 1000Q1/2008

CHF 1000

Net sales

Cost of sales

Margin

in % of net sales

Research and development expensesMarketing expensesAdministrative and general expensesOther operating income (+) and expenses (–), netOperating loss

in % of net sales

Financial incomeFinancial expensesOther incomeLoss before tax

Income taxes

Loss for the period

in % of net sales

Attributable to:

Shareholders of the parent Minority interest

Weighted average number of issued and outstanding sharesEarnings per share in CHF – undiluted

Weighted average number of issued and outstanding shares for calculation of earnings per share – dilutedEarnings per share in CHF – diluted

181 180

– 127 953

53 227

29.4

– 49 102– 16 389– 7 796

92– 19 968

– 11.0

1 735– 2 281

167– 20 347

10 339

– 10 008

– 5.5

– 10 04739

29 433 242– 0.34

29 433 242– 0.34

169 582169 582

– 118 939

50 64350 643

29.9

– 32 236– 15 324– 4 837– 2 055– 3 809– 3 809

– 2.2

2 288– 6 055

137– 7 439– 7 439

– 312

– 7 751– 7 751

– 4.6

– 7 7510

29 433 242– 0.26– 0.26

29 433 242– 0.26– 0.26

Interim Report


Assets

Consolidated balance sheet

31.12.2007

CHF 100028.3.2008

CHF 1000

Shareholders’ equity and liabilities

10


Shareholders’ equity

Issued capitalAdditional paid-in capitalOwn sharesOther comprehensive incomeRetained earningsTotal equity

Long-term liabilities

Long-term loansLong-term provisionsLong-term liabilitiesDeferred tax liabilitiesTotal long-term liabilities

Current liabilities

Current portion of long-term liabilitiesAccounts payable – tradeShort-term provisionsIncome tax payableOther current liabilitiesTotal current liabilities

Total liabilities

Total equity and liabilities

Non-current assets

Property, plant and equipmentIntangible assetsInvestmentsLong-term loans receivableOther long-term assetsDeferred tax assetTotal non-current assets

Current assets

InventoriesAccounts receivable – tradeOther current assetsShort-term financial investmentsCash and cash equivalentsTotal current assets

Total assets

1 484498 270– 9 43035 730

– 145 357380 697

125171 794

2 696885

175 500

19355 88039 0011 057

41 391137 522

313 022

693 719

1 484498 849– 9 43018 628

– 153 108356 423356 423

103162 432

2 2945

164 834164 834

17142 97736 2921 034

39 907120 381120 381

285 215285 215

641 638641 638

154 24324 8432 040

391 1473 479

185 791185 791

83 81493 63113 984

967263 451455 847455 847

641 638641 638

175 48927 9872 151

411 3193 627

210 614

85 34287 39418 4752 904

288 990483 105

693 719


11

Q1/2007

CHF 1000Q1/2008

CHF 1000Operating activities

Investing activities

Consolidated cash flow statement

Capital expendituresLong-term loansAcquisition of operations, net of cash acquiredShort-term financial investmentsInterest receivedProceeds from disposal of fixed assetsCash flow from investing activities

Financing activities

Loss before taxDepreciation and amortizationInterest income (–) and expense (+), net(excl. interest portion of discounted long-term provisions and liabilities)Loss/gain on disposal of fixed assetsShare compensation expenseForeign exchange gains and lossesChange in other long-term assets, provisions and liabilitiesCash flow before working capital changes

Change in inventoriesChange in accounts receivable – trade and other current assetsChange in accounts payable – trade, short-term provisions and other current liabilitiesCash flow from operations

Income taxes paid

Cash flow from operating activities

Proceeds from long-term borrowingsInterest paidRepayment of long-term liabilitiesCash flow from financing activities

Exchange effect on cashChange in cash and cash equivalents

Cash and cash equivalents at end of periodCash and cash equivalents as at January 1Change in cash and cash equivalents

– 10 6664

– 2 709– 7501 613

878– 11 630

– 3 71400

1 8162 604

61767767

0– 37

– 1 891– 1 928

1 55427 728

244 971217 24327 728

2– 4

– 1 890– 1 892– 1 892

– 13 692– 25 539– 25 539

263 451288 990– 25 539– 25 539

– 7 43916 654

– 2 170142579

1 0261 1959 9879 987

– 2 948– 7 786– 9 685

– 10 432– 10 432

– 290

– 10 722– 10 722

– 20 34723 185

– 1 559– 54980169

2 7345 108

14 4137 752

10 07537 348

2 384

39 732

Interim Report


12

Changes in equity1

Beginning of period

Share compensation expenseLoss for the periodChange in minority interestOther comprehensive income:Translation adjustment, net of tax CHF 879 (000)

End of period


Notes on the interim financial statements 28.3.2008

Q1/2007

CHF 1000Q1/2008

CHF 1000

1 condensed

1. Accounting principles

The unaudited interim financial statements (“Interim Report”) for the first quarter 2008 comply with International FinancialReporting Standards (IFRS) and have been prepared in accordance with IAS 34 ”Interim Financial Reporting“. The Interim Reportshould be read in conjunction with the consolidated financial statements as at December 31, 2007. We followed the sameaccounting policies and methods of computation as compared with the most recent annual financial statements. The Board ofDirectors authorized the Interim Report for issue on April 11, 2008.

3. Deferred tax assets

In view of the current losses as well as the history of recent losses (IAS 12.35), it is currently not probable that sufficientfuture taxable profits will be available against which the unused tax losses can be utilized in the German entities and at MicronasUSA Inc. In the first quarter 2008, additionally CHF 4.8 million of net operating losses have been carried forward for tradeincome tax and CHF 7.1 million for corporate income tax in Germany and additionally CHF 6.9 million of net operating losseshave been carried forward in the USA for which deferred taxes have not been recorded.

In the first quarter 2007, an increase of deferred taxes in the amount of CHF 13.2 million was recorded on losses incurredin Germany and USA.

2. Currency exchange rates

1.62332.42161.23441.03100.13300.15800.80740.15953.7450

1.65972.2498 1.1267 1.0300 0.1210 0.1444 0.7793 0.15453.4670

28.3.2008

3 months 2008

average 31.12.2007

3 months 2007

average

1 EUR1 GBP1 USD

100 JPY100 KRW

1 HKD1 SGD1 CNY

100 TWD

1.57381.5738

1.99441.9944

0.99280.9928

0.99900.9990

0.10100.1010

0.12760.1276

0.71990.7199

0.14170.1417

3.29303.2930

1.59891.5989

2.09032.0903

1.06021.0602

1.01301.0130

0.11100.1110

0.13580.1358

0.75360.7536

0.14890.1489

3.38603.3860

380 697380 697

579– 7 751

0

– 17 102356 423356 423

907 919

980– 10 008– 1 455

6 036903 472


13

5. Segment reporting

Consumer Automotive Corporate ReconciliationCHF 1000

Group

Regions

Net sales Q1/2008

in % of total net sales

Net sales Q1/2007

in % of total net sales

Europe Asia America Other Group

Business segments

Q1/2008

Net sales

in % of total net salesOperating profit/loss

in % of sales

Q1/2007

Net sales

in % of total net salesOperating profit/loss

in % of sales

115 919

68.4– 17 103

– 14.8

125 193

69.1– 34 739

– 27.7

53 663

31.613 294

24.8

55 987

30.914 771

26.4

0

0

0

0

0

0

0

0

169 582169 582

100.0– 3 809– 3 809

– 2.2

181 180181 180

100.0– 19 968– 19 968

– 11.0

98 283

58.0

83 719

46.2

64 476

38.0

87 718

48.4

6 025

3.6

8 332

4.6

798

0.4

1 411

0.8

169 582169 582

100.0

181 180181 180

100.0

In consideration of the adoption of IFRS 8 operating segments in 2009, the Corporate segment has been allocated to the business segmentsConsumer and Automotive starting 2008. The comparative figures of 2007 have been adjusted accordingly.

6. Number of employees

1 07663116626639

2 178

2 173

Q1/2008 Q1/2007 31.12.2007

ProductionResearch and developmentAdministration and generalMarketing and salesQuality managementNumber of employees at end of period

Average number of employees

1 01845715731038

1 9801 980

2 0322 032

1 03952016333838

2 098

2 160

7. Seasonality, economic cycles

In the past the results varied from quarter to quarter. It is expected that these variations will continue in the future. Thebusiness of the Group does not present pronounced seasonal cyclical patterns.

4. Financial expenses

The financial expenses of the first quarter 2008 include CHF 1.5 million expenses for hedging and CHF 2.4 million from foreigncurrency valuations of cash and cash equivalents balances.

Notes on the interim financial statements 28.3.2008


14


8. Issued capital

Opening balance

Share capital reductionBalance, end of period

The issued and fully paid share capital ofMicronas Semiconductor Holding AG comprises:

29 675 43029 675 430

029 675 43029 675 430

32 648 930

– 2 973 50029 675 430

1 632

– 1481 484

Number28.3.2008

CHF 1000 Number31.12.2007

CHF 1000

On March 2, 2007, the ordinary Shareholders’ Meeting resolved ashare capital reduction by cancelling 2 973 500 registered sharesproposed by the Board of Directors. The share capital reduction has

been executed on May 21, 2007, following the completion of the legalprocedures relating to the share capital reduction and the respectiveentry in the Commercial Register.

1 4841 484

01 4841 484

Outstanding at the beginning of year

IssuedExercisedForfeitedExpiredOutstanding, end of period

1 112 4501 112 450

265 7500

– 20 0000

1 358 2001 358 200

968 850

310 7000

– 75 350– 91 750

1 112 450

48.19

26.950.00

44.5338.9742.93

Number ofshare options

Weightedaverage

exercise priceNumber of

share options

28.3.2008 31.12.2007

Weightedaverage

exercise price

In the first quarter 2008, 20 000 share options forfeited due to the retirement of some key employees.

42.9342.93

10.850.00

45.280.00

36.8936.89

9. Share options

Expected option life in yearsExpected forfeitures per year until vestingExpected volatilityShare price at the grant date in CHFRisk-free interest rateExpected dividendWeighted average fair value per options granted in CHF

2.56 – 4.563.7%

55.0%10.85

2.81 – 2.930.0%4.36

2.15 – 4.413.7%

56.0%26.95

2.63 – 2.660.0%9.94

20072008

In 2008, options were granted on January 3.The calculation of the fair value has been determined on the following actuarial assumptions:

Compared to the share options granted in January 2007, certain assumptions have been adjusted to reflect current developmentin the market and in the structure of the plan participants.

Additional information

Orders on hand

Orders on hand, beginning of period

Net salesOrder intakeTranslation adjustments

Orders on hand, end of period

Book-to-bill

Q1/2007

CHF 1000Q1/2008

CHF 1000

174 893174 893

169 582132 202– 8 636

128 877128 877

0.780.78

161 316

181 180172 684

1 604

154 424

0.95


15

Number of shares and options heldby the Board of Directors and Management Board

Name Position

1 One option entitles to draw of a registered share of Micronas Semiconductor Holding AG, Zurich, with an exercise price of CHF 31.67 each until December 31, 2008.The options were granted on January 1, 2003.


3 One option entitles to draw of a registered share of Micronas Semiconductor Holding AG, Zurich, with an exercise price of CHF 55.00 each until December 31, 2010.The options were granted on January 3, 2005 (exception: options H. Stanzer granted on April 7, 2005; exercisable until December 31, 2008).

4 One option entitles to draw of a registered share of Micronas Semiconductor Holding AG, Zurich, with an exercise price of CHF 45.15 each until December 31, 2011.The options were granted on January 3, 2006 (exception: options H. W. Kreutzer granted on March 3, 2006; exercisable until December 31, 2008).

5 One option entitles to draw of a registered share of Micronas Semiconductor Holding AG, Zurich, with an exercise price of CHF 26.95 each until December 31, 2012.The options were granted on January 3, 2007 (exception: options C. Brand and M. Lichtman granted on March 2, 2007; exercisable until December 31, 2010).


20 000

0

1 000

100

0

0

0

0

0

0

0

0

0

0

5 000

0

6 600

0

6 600

0

0

0

25 000

10 000

5 000

5 000

5 000

0

5 000

0

5 000

5 000

6 600

0

6 600

0

0

0

25 000

10 000

5 000

5 000

5 000

0

5 000

0

5 000

5 000

6 800

0

6 800

0

0

20 000

25 000

10 000

5 000

5 000

5 000

0

5 000

0

5 000

5 000

6 600

0

6 600

13 200

0

6 600

25 000

10 000

5 000

5 000

5 000

0

5 000

0

5 000

5 000

13 200

20 000

6 600

6 800

20 000

6 600

25 000

10 000

5 000

5 000

5 000

7 500

5 000

0

5 000

5 000

13 600

6 600

6 800

6 600

6 600

6 800

25 000

10 000

5 000

5 000

5 000

5 000

5 000

15 000

5 000

5 000

Chairman of the Board of DirectorsMember of the Board of DirectorsMember of the Board of DirectorsMember of the Board of DirectorsMember of the Board of DirectorsMember of the Board of Directors

Chief ExecutiveOfficerChief Financial OfficerVice PresidentConsumerVice PresidentAutomotiveVice PresidentOperationsVice PresidentHuman ResourcesVice PresidentOperations BackendVice President Marketingand Application ConsumerVice PresidentQualityVice President ProductDevelopment Consumer

Numberof shares

Numberof options1

Number of options2

Number of options3

Number of options4

Number of options5

Number of options6

Dr. Thomas Lustenberger

Christoph Brand

Dr. Rudolf W. Hug

Heinrich W. Kreutzer

Moshe Lichtman

Harald Stanzer

Dr. Wolfgang Kalsbach

Manfred Häner

Hans-Jürgen Désor

Klaus Heberle

Nikolaus-Viktor Kaeppeler

Jürgen Kurz

Wilfried Lowinski

Timothy Vehling

Nicholas Ververis

Dirk Wieberneit

Additional information


www.micronas.com

Micronas Semiconductor Holding AG

Technopark I Technoparkstrasse 1 I 8005 Zurich I SwitzerlandPhone +41 44 445 39 60 I Fax +41 44 445 39 61

Micronas Holding GmbH

Hans-Bunte-Strasse 19 I 79108 Freiburg I GermanyPhone +49 761 557 5688 I Fax +49 761 557 5690 [email protected]

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Documents

Micronas QR 1 08 · Micronas started the 2008 business year in line with expectations. The restructuring process, begun in autumn 2007, made more rapid progress in the first quarter