Investor presentation – Half-Year Results 2015

The following documentation contains forward-looking statements that are subject to certain risks and uncertainties. Actual results may differ materially from those anticipated in this presentation.

2

Company overview

Markets and customers

Products and applications

Financial details

Outlook and summary

Backup information

Agenda

3

Micronas at a glance

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About 900 employees worldwide

Leading supplier of Hall sensors for the automotive industry

Core business Automotive Focus on sensors and sensor-based solutions

Full in-house production with own waferfab and backend operations including testing and packaging

zero ppm quality to ensure customer satisfaction

Commitment to environmental protection

Most Preferred Partner for Sensing and Control

Sales offices across Europe

Micronas Ltd. Glenrothes, Scotland

Test center, Production

Micronas New Technologies GmbH, Munich, Germany

Research & Development Sales

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Group structure and locations

Micronas GmbH Freiburg, Germany

Research & Development Marketing & Sales Production

Micronas Japan K.K. Tokyo, Japan, Sales office

Micronas Semiconductor Holding AG, Zurich, Switzerland

Headquarters

Sales office Shanghai, China

Sales office Detroit, USA

Sales office Seoul, Korea

Business update

Group sales up by 2 percent after currency adjustments

Earnings negatively impacted: EBIT hurt by the switch to 8-inch Net profit influenced by cash holdings in euro

A total of 510 396 shares were repurchased, equivalent to 1.7 percent of the Company's share capital

Capacity utilization at own manufacturing facilities stood at around 85 percent

The combined heat and power plant achieved very high overall efficiency and is exceeding target levels

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Removal of the minimum exchange rate between the euro and the franc reduced figures in the income statement and balance sheet

Product innovations

Great customer interest in the new Hall-effect sensor products announced last year

Extension of our clear market leadership in China by acquiring additional platforms for gas pedal applications

More projects involving our 2D-HAL products started up for new applications such as valve control and coolant valves

New contracts with Rutronik, Digi-Key and Mouser to further boost sales in the automotive and industrial sectors 7

"Global Cooperation Award" from our largest customer Denso in recognition of the reliability of our supplies and our excellent support

Product announcements

Announcement of first redundant Linear Hall-effect sensor family, produced on a package less than 1 millimeter thick with two completely independent silicon chips integrated

First member of the new embedded motor controller generation with integrated power bridges offers a unique level of integration and unprecedented flexibility for the direct control of compact, cost-effective electric motors (BLDC, BDC and stepper motors) 8

Micronas was present at the most important trade fairs, including Sensor+Test in Nuremberg and Automotive Engineering Exhibition in Yokohama to present its latest product innovations to an interested specialist audience

Agenda

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Company overview

Markets and customers

Products and applications

Financial details

Outlook and summary

Backup information

Micronas has a long history in Automotive with a very large customer base

Micronas maintains full control of production from wafer fab, assembly and final testing providing highest flexibility to meet automotive quality and to offer unique customization capability

Micronas offers the world´s largest Hall sensor portfolio covering most automotive applications

Micronas also provides innovative fully integrated servo-drive solutions for motor control applications

Markets Automotive

Automotive

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Powertrain

Chassis and safety

Body and comfort

Intelligent sensor and actuator solutions for smart automation networks to enable increased comfort and lifestyle

Highly reliable and robust sensors to meet the demands for long lifetime within harsh environments

Wide range of cost-effective sensor solutions for eco-friendly home appliances with small form factor

Markets Industrial

Industrial

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Building, home and office Automation

Home appliance and white goods

Factory and process automation

Garden and power tools

Agricultural and heavy machinery Mobility and robotics

Markets and technology drivers

Comfort and lifestyle

High levels of functionality, low power and small form factor enable new applications and comfort features

Economy

Reduced overall system cost enabled by highly integrated sensors and embedded controllers, e.g. increasing magnet costs can be compensated by higher sensitivity

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Increased safety demand drive growth for novel, intelligent and redundant products and system solutions

Increased demand for high energy efficiency and CO2 reduction needs optimized sensors and actuator solutions, e.g. for engines, BLDC motors and HVAC systems

Environmental protection

Safety

8%

5% 4%

7%

-12% -20%-15%-10%-5%0%5%10%15%20%25%30%35%

0

2

4

6

8

10

WesternEurope

thereofGermany

USA China Japan

Registration in Mil./units

Growth (1st half 15/14)

New passenger car registration first six months 2015

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Market development

Source: VDA – Verband der Automobilindustrie, July 2015

100%

110%

120%

130%

140%

150%

160%

170%

2015 2016 2017 2018 2019 2020

BLDC motors Automotive (Mil. USD)

Hall sensors Automotive (Mil. USD)

Elektronc systems Automotive (Mil. USD)

Vehicle production (Mil. units)

Market development

14 Source: Strategy Analytics / IHS / WSTS / Micronas, July 2015

Mar

ket f

igur

es n

orm

aliz

ed to

201

5

CAGR 2015 – 2020 = 4%

CAGR 2015 – 2020 = 6%

CAGR 2015 – 2020 = 7%

CAGR 2015 – 2020 = 10%

Hall sensors and BLDC motors will continue to outgrow vehicle production and electronic systems in cars

15 15

Customer and distributor base

16 16

Automotive manufacturers – OEMs

Agenda

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Company overview

Markets and customers

Products and applications

Financial details

Outlook and summary

Backup information

Micronas product portfolio

Embedded motor controllers Hall-effect sensors

Gas sensors

Up to 100 electric motors per vehicle Market growth dominated by BLDC and

stepper motors All-in-one solution

provides higher system efficiency to reduce motor size and weight

Major automotive trends for CO2 reduction and car electrification are asking for tighter controls, thus increasing the demand for magnetic sensors

More than 85% of magnetic sensors in cars are based on the Hall effect

Micronas offers the broadest portfolio of Hall sensors for automotive applications covered by switches, linear, direct angle and current sensors

Multi-parameter gas, temperature and relative humidity sensor

Single-chip sensor results in small and low power solution

Applications include fire detection, HVAC and leakage

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Safety

New product development and documentation are meeting the requirements of ISO26262, the de-facto standard for automotive functional safety

Micronas has developed a concept for its devices to become insensitive against disturbing magnetic stray fields caused by the increased car electrification (HEV/EV)

Capacitors are integrated into the sensor package in order to fulfill stringent EMC/ESD requirements and to reduce overall system costs

Two silicon dies are integrated into a single package to respond efficiently to redundancy requirements for most critical applications (pedal, throttle, steering)

Redundancy

Robustness Integration

Hall-effect sensors – trends

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Easy to implement contact-less switch Replacement of microswitches

Hall-effect sensors – products

Switches

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power tools

Precise angle detection with a single sensor

Replacement of inductive or optical angle encoders

Angular steering angle

Highly accurate position detection

Replacement of conventional potentiometers

Linear bending lights

pressure

Small form factor contact-less current transducer

Replacement of shunt-based solutions

Current battery management

current monitor joystick

buckle switch throttle flap

Micronas offers the broadest portfolio of Hall sensors for automotive and industrial

Cost effectiveness

Reducing Cost of Ownership and software development time is a major concerns for our customers. Our products are flexible and configurable to drive different type of motors.

Micronas products are enabling different driving schemes and optimization functions enabling smaller motors to reach higher torque requirements.

Micronas is focusing on enabling complex drive to ever smaller motors with small footprint, reducing the number of necessary external components to a minimum.

BLDC motors enables weight, space and noise reduction in interior applications. Micronas products ensure a smooth transition from BDC and Stepper motors towards BLDC motors.

Weight and noise reduction

Efficiency Miniaturization

Embedded motor controllers – trends

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HVC 2480B All-in-one

Embedded motor controllers – products

Micronas solutions are single-chip, high voltage controllers with flexible peripherals and direct motor driving capabilities.

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Higher efficiency

32-bit ARM CortexTM-M3 core enables high end motor control strategies to further reduce noise and increase efficiency

Smaller footprint

Integration of digital logic as well as analog, HV and NVM capabilities in a dedicated CMOS process in co-operation with X-FAB

next

Application fields Automotive

Active pedal Powertrain valves Battery management Gear position Water/oil pumps Shift lever position Turbo charger Liquid level Thermo management/

valves

Steering torque Steering angle Steering motor position Chassis position sensor Braking pedal

Window lift/sun roof LED fans Door lock Buckle switch Adaptive headlights HVAC Blower and flap control Seat position/climate Grill shutter Climate flaps

Hall-effect sensors (switches, linear, direct angle, current) and embedded motor controllers

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Chassis and safety Body and comfort Powertrain

Application fields Industrial

HVAC Rolling shutter/

blinders Door/window locks Water metering

Hall-effect sensors (switches, linear, direct angle, current) and embedded motor controllers

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Joystick/pedal Throttle/valve Cylinder position Proximity switch

Building, home and office automation

Factory and process automation

Door lock Flow measurement Motor commutation Push button

Home appliance and white goods

Factory and process automation

E-bike Wheel chair Utility tractor Robot

Mobility and robotics

Mower Chain saw Trimmer Blower

Pedal sensor Throttle sensor Transmission

shifter Joystick

Garden and power tools

Agricultural and heavy machinery

Agenda

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Company overview

Markets and customers

Products and applications

Financial details

Outlook and summary

Backup information

Currency exposure

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Selected effects EUR/CHF first half-year 2015 vs. full year 2014:

Translation effects balance sheet and income statement = -12 to -14%

Competitive effects = 0

EBIT margin effect = ~0 percentage points

Equity effect = CHF -13 mil. / Equity ratio = -4 percentage points

85%

1%

7% 5% 2%

Cost base per currency, forecast 2015

EURJPYUSDGBPCHF

81%

13%

6% Net sales per currency, forecast 2015

EURJPYUSD

Micronas Group – income statement

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Mil./CHF in % of Mil./CHF in % ofnet sales net sales

Net sales 70.8 81.1Gross margin 19.4 27.3% 24.7 30.4%

Research and development expenses -10.8 15.3% -13.4 16.5%Marketing and sales expenses -4.6 6.5% -5.1 6.3%Administrative and general expenses -2.6 3.7% -3.1 3.8%Other operating income/expenses 0.5 0.7% 0.2 0.2%Operating profit (EBIT) 1.9 2.7% 3.3 4.1%

Financial income/expenses/FX net. -7.6 -0.9Pretax profit/loss -5.7 -8.0% 2.4 3.0%Income taxes 0.5 -0.1

Profit/loss for the period -5.2 -7.3% 2.3 2.8%

EBITDA 6.7 9.5% 8.9 11.0%

Earnings per share in CHF -0.18 0.08

1st half 2015 1st half 2014

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Micronas Group – segment information

Decrease in Automotive sales of 12 percent on the first half of 2014

The currency-adjusted figure shows a slight increase of 3 percent

The Industrial segment achieved sales of CHF 4.4 million compared with CHF 5.5 million in the equivalent prior-year period

After currency adjustment a decline of 7 percent was recorded

Mil./CHF 1st half 2015 1st half 2014

Automotive

Net sales 66.5 75.6

Gross margin 18.0 22.5in % of sales 27.1% 29.7%

Operating profit (EBIT) 1.6 3.2in % of sales 2.5% 4.2%

Mil./CHF 1st half 2015 1st half 2014

Industrial

Net sales 4.4 5.5

Gross margin 1.3 2.2in % of sales 30.2% 39.6%

Operating profit (EBIT) 0.3 0.1in % of sales 6.0% 1.9%

88%

6% 6%

Sensors Automotive Controllers Automomotive Sensors Industrial

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Micronas Group – product lines

Automotive sensor sales were down by 13 percent, currency adjusted, there was a growth of 2 percent

Overall controller sales for the first time grew due to embedded motor controllers by 5 percent, currency adjusted even by 25 percent

Industrial sales of hall sensors declined by 20 percent, currency adjusted by 7 percent

Sales part by product lines

Mil./CHF 1st half 2015 1st half 2014 Change in % Change in %currency adjusted

Sensors Automotive 62.4 71.8 -13% 2%Controllers Automotive 4.0 3.8 5% 25%Sensors Industrial 4.4 5.5 -20% -7%

Total sales 70.8 81.1 -13% 2%

54% 21%

4% 6% 15%

Sales in Europe

Germany Hungary Czech Republic France Others

83%

13% 4%

Sales in Asia

Japan China Others

58%

33% 9% 0%

Sales total

Asia Europe America Others

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Micronas Group – regional information

Mil./CHF 1st half 2015 1st half 2014 Change in % Change in %Currency adjusted

Europe 23.6 26.8 -12% 4%Asia 40.9 46.7 -12% 3%America 6.2 7.5 -17% -3%Others 0.1 0.1 0% 0%

Total sales 70.8 81.1 -13% 2%

Micronas Group – balance sheet

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Equity at CHF 94 million – decline due to currency effects on valuations

Equity ratio at 37 percent

Mil./CHF 26.6.2015 31.12.2014

Total non-current assets 82.9 95.9Cash, cash equivalents and short-term financial investments 126.6 152.1Other current assets 45.7 49.7

Total assets 255.2 297.7

Total shareholders' equity 94.1 109.8in % of total assets 36.9% 36.9%Total long-term liabilities 143.6 167.7Total current liabilities 17.5 20.2Total liabilities 161.1 187.9

Total shareholders' equity and liabilities 255.2 297.7

Cash, cash equivalents and short-term financial cash deposits 126.3 151.4

Mil./CHF 26.6.2015 31.12.2014

Inventories 27.1 33.5Accounts receivable 14.8 14.6

Accounts payable 6.1 9.2

Trade net working capital 35.8 38.9

Trade net working capital represents 24 percent of LTM net sales

Micronas Group – cash flow statement

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Mil./CHF 1st half 2015 1st half 2014

Net cash at the beginning of the period 151.4 170.4

Cash flow from operating activities -4.4 -2.2

Cash flow from investing activities -3.4 -9.0

Cash flow from financing activities -4.4 -1.50Exchange effect on cash -12.9 -0.7Change in net cash -25.1 -13.4

Cash, cash equivalents and short-term financial cash deposits 126.3 157.0

Net liquidity went down by CHF 25 million to CHF 126 million – this decrease is mainly due to currency effects

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Q3-14 Q4-14 Q1-15 Q2-15

Book-to-bill

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Micronas Group – order book

ratio

Mil./CHF 1st half 2015 1st half 2014

Orders on hand, beginning of period 49.0 48.1

Net sales 70.8 81.1Order intake 65.7 80.8Translation adjustments -6.5 -0.4

Orders on hand, end of period 37.4 47.4

Book-to-bill 0.93 1.00

Orders on hand at the end of the period of CHF 37 million – book-to-bill ratio for first half-year at 0.93

Agenda

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Company overview

Markets and customers

Products and applications

Financial details

Outlook and summary

Backup information

The decline in demand for cars in Japan is hitting Japanese automobile manufacturers as well as their suppliers, so Micronas Group's sales in the second half of year will not be as high as in the first

With an EUR/CHF exchange rate of 1.05, for the full year sales of ca. CHF 135 million are expected Currency adjusted, this means a decline in sales of 2

percent compared with the prior year

The EBIT-margin, still affected by the change in manufacturing processes, will be in the low single-digit percentage range

Owing to the valuation of cash holdings denominated in foreign currencies, the net result is still expected to be negative

Outlook for full year 2015

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Grow faster than the Automotive market Grow sales in Europe and America above

average Ensure leading position for Hall-sensors in the

automotive market

Capture new markets with our sensor based solutions like our embedded motor controllers

Keep high investments in innovation while increasing profitability

Long-term targets

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We believe that despite the short-term negative effects of manufacturing changes and of the franc shock, Micronas, thanks to its strategy and innovative product portfolio, is on track to achieve the long-term goals announced in February

Year-on-year sales growth of > 8 %

Gross margin of > 40 %

R&D expenditures of 16 – 18 %

EBIT margin of 15 %

Summary

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Our customers trust us. More than 3 billion sensors sold from the world market leader of linear Hall-effect sensors.

Quality without compromises. Our products are known for superior quality, functional safety and excellent reliability.

All under one roof. More flexibility and fast time-to-market.

Excellence by experience. Innovative solutions and excellent support, based on deep market and broad system know-how.

Agenda

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Company overview

Markets and customers

Products and applications

Financial details

Outlook and summary

Backup information

Total shares outstanding as at June 30, 2015: 29 757 930

Shareholder structure

Shareholders by country Shareholders by category

29.3%

18.1%

1.9%

7.2%

2.4%

0.2%

40.9%

Switzerland

Great Britain

Germany

Rest of Europe

USA

Rest of world

Shares notregistered

22.2%

5.0%

8.4%

0.1% 0.5%

0.3% 22.6%

40.9%

Persons

Companies

Funds

Foundations

Pension funds

Insurance comp.

Banks

Shares notregistered

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Major shareholders

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Number of shares

Brandes Investment Partners, L.P.1 San Diego, USA 3 155 277 10.60

RBC Dexia Investor Services Trust2 London, Great Britain 2 381 658 8.00

Nortrust Nominees Ltd.2 London, Great Britain 2 141 058 7.19

Sparinvest Holdings SE1 Luxembourg 1 583 383 5.33

Black Creek Investment Management Inc.1 Toronto, Canada 1 495 070 5.04

Wellington Management Group LLP1 Boston, USA 1 065 105 3.58

As at June 30, 2015, the Company is aware of the following shareholders holding 3 percent or more of the capital and/or voting rights of the Company:

Shareholder Registered office Percentage

1 The above figures (number of shares and percentages) conform to the figures contained in the respective notifications to the Company and the Disclosure Office of the SIX Swiss Exchange; they may not be accurate as at June 30, 2015.

2 Nortrust Nominees Ltd. and RBC Dexia Investor Services Trust are acting in their capacity as nominees for other investors. The above figures (number of shares and percentages) conform to the figures as at June 30, 2015.

October 22, 2015 Quarterly key figures Q3-2015

February 25, 2016 Publication of financial year 2015

February 25, 2016 Closing date of share register

March 30, 2016 Ordinary Shareholders’ Meeting

10 a.m., Technopark, Zurich

IR calendar

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IR contact Susy Krucker, Head of Investor Relations, investor@micronas.com for further information, please check: www.micronas.com / Investor