ANNUAL REPORT 2021
ON THE COVER: THE HONEY BEE
Thanks to its magnec compass, the fascinang honey bee has the ability to perceive the omnipresent magnec field (MF) of the Earth. Its magnec field sensivity matches this wonderful creature with our Triaxis® magnec sensors.
TABLE OF CONTENTS
1 | Leer to our shareholders | 4 |
2 | Who we are | 9 |
2.1 We engineer the best imaginable future | 9 | |
2.2 Our sites worldwide | 10 | |
2.3 Our key figures | 12 | |
2.4 Our industry associaons | 14 | |
3 | What we do | 16 |
3.1 We develop chips | 16 | |
3.2 We innovate for our customers | 18 | |
3.3 We cater to many different markets | 19 | |
3.4 Our soluons | 20 | |
4 | What we stand for | 28 |
4.1 Our guiding principles | 28 | |
5 | Our strategy | 30 |
5.1 We are going for 20 ICs per car | 31 | |
5.2 These applicaon trends drive our innovaon | 32 | |
5.3 We focus on ASSPs and ASICs | 38 | |
5.4 We want to be our customers' partner of choice | 38 | |
6 | Our sustainability report | 40 |
6.1 Our key material topics and concerns | 40 | |
6.2 Our stakeholder engagement | 42 | |
6.3 Our talents | 44 | |
6.4 Safety, health and well-being | 52 | |
6.5 Local communies | 55 | |
6.6 The environment | 57 | |
6.7 Responsible supply chain | 63 | |
6.8 Our business ethics | 66 |
7 | Our corporate governance | 68 |
7.1 Shareholders | 68 | |
7.2 Management structure | 69 | |
7.3 Board of Directors | 70 | |
7.4 Commiees | 72 | |
7.5 Execuve Management | 73 | |
7.6 Remuneraon report | 74 | |
7.7 Policy on certain transacons | 80 | |
7.8 Internal control and risk assessment procedures in relaon to financial reporng | 82 | |
7.9 Elements pernent to a take-over bid | 83 | |
7.10 Auditor | 84 | |
7.11 Compliance with the 2020 Belgian Code on Corporate Governance | 84 | |
8 | Financial report | 85 |
8.1 Consolidated statement of financial posion | 86 | |
8.2 Consolidated income statement | 88 | |
8.3 Consolidated statement of comprehensive income | 89 | |
8.4 Consolidated statement of changes in equity | 90 | |
8.5 Consolidated statement of cash flows | 92 | |
8.6 Result of operaons | 94 | |
8.7 Liquidity, working capital and capital resources | 95 | |
8.8 Statement of the Board of Directors | 95 | |
8.9 Notes to the consolidated financial statements | 96 | |
9 | Shareholder informaon | 140 |
10 | Excerpts from the Melexis nv statutory | 142 |
11 | Glossary | 148 |
12 | List of used acronyms | 149 |
13 | GRI content index | 150 |
14 | About this report | 154 |
Dear Melexis shareholder,
As 2021 was a surprising year for all of us, we are sure you have plenty of quesons you would like to ask the Melexis leadership team. So we decided to organize a double interview with Françoise Chombar, Chair of the Board, and Marc Biron, our new CEO, to give you more insight into our strategy and the highlights of 2021.
Marc, Françoise, welcome to the both of you. 2021 was obviously a year of transion for Melexis. Marc became CEO and Françoise is the new Chair of the Board. What was your experience during this change in leadership? Did you noce a difference in approach or impact?
Françoise: Well, the CEO transion from myself to Marc was in fact very smooth. Of course there is a difference. There should be. Marc is a different person, but our mission, our strategy as a whole and our values are sll the same. It's good to have new leadership from me to me as this ensures a new boost. That was exactly one of the intenons of the swap. In my percepon the transion is a success. But maybe we have to ask other people (laughs).
Marc: I have the same impression. Françoise and I prepared the transion well. The goal is to keep the same strategy: an evoluon, not a revoluon. Of course, the change of leadership triggered some slight modificaons in policy.
Françoise, what is the main objecve of the Chair of the Board? How different is the impact you can make compared to being a CEO?
Françoise: Well, a CEO is of course extremely operaonal. As CEO you have to make sure that everything runs smoothly. As Chair, I can take the helicopter view from a distance. I make me to be a sounding board for the CEO and I'm sll an ambassador of Melexis to the outside world. I think it's a way to grow and expand my focus while sll helping to guide the company.
"Our strategic choices from the past are paying off"
Marc, in your opinion, what were the commercial highlights in 2021, which we know was a record year for Melexis? Marc: The COVID-19 pandemic and the chip shortage gave us a strong headwind, but we sll achieved great business success in 2021. It is a confirmaon that all our strategic decisions of the past were the correct ones. For example our success in applicaons for electrificaon of vehicles. We had many design wins and considerable revenue growth in the field of current sensors which monitor the state of the baery. The same goes for current sensors which opmize the performance of the DC/DC converter. Other successes were realized in the field of thermal management of electric vehicles.
"
Both in automove and adjacent markets we reach our goals of contribung to a beer planet
These systems require a lot of chips like embedded drivers and posion sensors. In ancipaon of the electrificaon trend, we developed these products and were ready for the market shiſt. Now we see this strategic choice is paying off.
Some years ago Françoise also set course for the development of soluons for what we call the adjacent market (non-automove). Here we have seen successes with temperature sensors for health monitoring. Our posion sensors have also done well in the gaming industry and latch and switch soluons have been incorporated into power tools. So also in this area, the organizaon is delivering according to the strategic intent.
A record year is without any doubt reason for pride. But we can imagine that this influences the goals set by the Board of Directors.
Françoise: When you are successful, you should not lower your goals. You should, based on actual knowledge, determine how to leverage the realized successes. You have to maintain a balance between sustainable growth and keeping the corporate values alive during that connued strive for success. Living the values is sll a condion sine qua non because they are the root of our growth. What's especially nice for me to see is that in both automove and adjacent markets we reach our goals of contribung to a beer planet.
Marc, what would be the most sasfying goal for you to see Melexis achieve by January 2023?
Marc: We have some challenges ahead and we should connue to manage them. The first challenge is the chip shortage. This will remain a tough situaon well into 2022. The huge demand for electronics will only intensify, which is of course good for Melexis. The digitalizaon of the world is a big demand driver. To manage the supply we are upscaling capacity in-house and at our suppliers, obviously in close
cooperaon with them. We've got sufficient new business opportunies to match the capacity as it gets built.
"Chips are not a commodity"
How do you combine these two? Managing a supply shortage while creang new business seems contradictory? Marc: It's indeed difficult to find the right balance. We have an exisng business where we need to deliver at least the minimum of what the market demands. But we also need to increase our footprint in the car of tomorrow. We won't let competors take our place there. How do we do this? By working from day to day with our suppliers so we can opmize the throughput in such a way that part of the new supply can go to the new markets. This is not easy but many people within Melexis are dedicated to this challenge. The mismatch between the supply and the demand is also an opportunity to select the businesses that fit our values and our strategic intents.
Françoise: I've been in semiconductors for more than 35 years. It's the first me ever that I see customers and car manufacturers being open to long-term commitments. They used to treat chips like commodies. Now they have discovered the truth: chips are not a commodity. It takes quite a bit of me to make them, even more me to qualify them and surely a lot of me to set up the right capacity. The mind shiſt towards long-term cooperaon is really a major game changer. People dealing with customers have to realize that they shouldn't stop booking new business. Because by the me the new customers will need their products, we will be able to deliver. In that sense this chip shortage is an opportunity for us. We have to take advantage of this mind shiſt right now. The momentum is there.
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Melexis NV published this content on 05 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 April 2022 07:58:04 UTC.