Elmos Product Quartets

Transcription

1 s r in ves de un rge ha f c ree df ere rd be an s c Th ee lm sp rd u c qu a E r 00 E5 r: Q N C u e m b E m M u b l A er: l N r.5ma e V V: pp 8 ly L6Su er: epp ical C0urrBeinra b 3 m E5. p0 5e: l: STyep Nu uch 4 d/tu N3 x./3dsg ecsurre Lev 5.5 OI F y r In P u p i : n : l : Q e i c y r c a f l e aces: s Depp r: Qyupe Mbi/s u ac QHFN3L5 T be :es g ig g r k P h a y r a A s S m c : l peedam l Packagelle kagse:rlway f s en CA Vupp Nu r f : r Sen urpshse Seynss S Qu age nc A rm em Q ip er em l k u r e c N w S / u i a ar L gh F g P F IN s ArCLIO N H w s s 4 S a y 4 e s s L r w 7 es e : l m P l u e B. e y a e l s u is lm Chip+i in V ag Safeepp n s k B s.c c aser S m ha Pa nd er w P.c m. Uni re l r y n CSafe ive r rum e A M hu S ive ill Gr / m ive Au m Au New HALIOS in rking nsle ec C r e n e r C / e P v i l A m um riaau ive / Cn des rl / Pe Elms Prduc Quares Half-year repr HY 04 Elms half-year repr January June 30, 04

2 Overview In fcus -> Sales grw.3% 0.3 millin Eur -> Significanly imprved qualiy f earnings -> Frecas raised slighly Key figures in millin Eur r percen unless herwise indicaed 3 mnhs year-ver-year cmparisn 04/0 04/0 06/30/03 Change 6 mnhs year-ver-year cmparisn 0/0 0/0 06/30/03 Change Sales % % Semicnducr % % Micrmechanics % % Grss prfi % % in percen f sales 4.5% 39.0% 4.6% 39.0% R&D expenses % % in percen f sales 5.6% 9.% 6.5% 9.7% Operaing incme befre her peraing expenses ( )/incme >00.0% n/a in percen f sales 8.4%.% 7.% 0.% Exchange rae lsses ( )/gains n/a n/a Oher peraing expenses ( )/incme % % EBIT 5..6 >00.0% >00.0% in percen f sales 9.8% 3.3% 8.%.0% Cnslidaed ne incme afer nn-cnrlling ineress 4.0. >00.0% 8..5 >00.0% in percen f sales 7.8%.% 8.0%.6% Basic earnings per share (in Eur) >00.0% >00.0% Cash flw frm peraing aciviies >00.0% >00.0% Capial expendiures fr inangible asses and prpery, plan and equipmen % >00.0% in percen f sales 8.6%.% 7.4% 9.6% Free cash flw % n/a Adjused free cash flw %.6 0. n/a in millin Eur r percen unless herwise indicaed /3/03 Change Equiy % in percen f al asses 70.5% 7.% Emplyees (repring dae),8, % Adjusmen f prir-year amuns; please refer ne in he cndensed nes he cnslidaed financial saemens Cash flw frm peraing aciviies less cash flw frm invesing aciviies 3 Cash flw frm peraing aciviies less capial expendiures fr inangible asses and prpery, plan and equipmen, less paymens fr invesmens, plus dispsal f invesmens Due calculain prcesses, ables and references may prduce runding differences frm he mahemaically exac values (mneary unis, percenage saemens, ec.).

3 Inerim grup managemen repr Inerim grup managemen repr Curse f business Sales develpmen and rder siuain In he s half-year 04 sales wen up.3% cmpared he prir-year perid reach 0.3 millin Eur. Cmparing quarers year-ver-year, sales f he secnd quarer gained 0.3% n he prir-year quarer (Q 03: 47. millin Eur) and 5.% n he previus quarer (Q 04: 49.4 millin Eur), cming 5.9 millin Eur in he repring quarer. Elms cninues benefi frm he psiive rend in new car regisrains in Eurpe, he U.S., and China. The sales increase is driven by he disprprinae grwh f he Asian marke (+3.7 millin Eur r 7.3%) and ramp-ups f new prducs. Ye he enire Eurpean marke Germany in paricular shwed a cnsiderable repea rebund in he s half-year 04 (+3.7 millin Eur r 6.6%). Cmpared he prir-year perid, he semicnducr segmen climbed.5% 9.7 millin Eur (HY 03: 8.4 millin Eur). Sales f he micrmechanics segmen were up 9.8% 8.6 millin Eur, cmparing six mnhs year-ver-year (HY 03: 7.8 millin Eur). Expressed in U.S. dllars, half-year grwh wuld have even been much higher (+4.7%). The ramp-ups f he micrmechanics segmen in he secnd quarer f 04 made a subsanial cnribuin his sales imprvemen (Q 04: 4.8 millin Eur vs. Q 03: 3.8 millin Eur). The rai f rder backlg sales, he s-called bk--bill, was abve ne a he end f he firs half-year 04. Sales by regin HY 04 Germany 34.% Oher EU cunries 5.5% U.S.A. 9.5% Asia/Pacific 4.5% Ohers 6.4% Third-pary sales 0/0 in percen f sales 0/0 06/30/03 in percen f sales Germany 34, % 30, %.4% Oher EU cunries 5,80 5.5% 5, % 0.3% U.S.A. 9,66 9.5% 6,7 6.9% 56.5% Asia/Pacific 4, %,35 3.4% 7.3% Ohers 6, % 6,38 7.0% 3.3% Cnslidaed sales 0, % 90,3 00.0%.3% Change Elms half-year repr January June 30, 04 3

4 Prfi siuain, finances, and asses and liabiliies The cs f sales rse by 7.6% 59. millin Eur in he firs six mnhs f 04 cmpared he prir-year perid, a disprprinaely lw increase in relain sales (HY 03: 55.0 millin Eur). The grss margin wen up accrdingly 4.6% (HY 03: 39.0%). The grss prfi was increased by 9.6% 4. millin Eur in cmparisn wih he priryear perid (HY 03: 35. millin Eur), hus grwing much faser han sales did. This is a psiive effec f he successively imprved efficiency in prducin. Research and develpmen expenses wen dwn frm 7.8 millin Eur in he prir-year perid 6.8 millin Eur. In relain sales, R&D expenses declined frm 9.7% in he prir-year perid 6.5% in he repring perid. Respnsible fr his are amng her hings several grans realized in he secnd quarer 04. Disribuin expenses as expressed in abslue numbers are sable in he repring perid (HY 04: 9.3 millin Eur vs. HY 03: 9. millin Eur). In relain sales, hwever, expenses drpped frm 0.3% 9.%. Adminisraive expenses were als reduced in relain sales, frm 9.% 8.7%. As a resul f he sales increase and he gains in efficiency regarding manufacuring cs and peraing expenses, earnings befre ineres and axes (EBIT) fr he firs six mnhs reached 8.3 millin Eur r 8.% f sales (HY 03:.8 millin Eur r.0%). Apar frm ha, cnslidaed ne incme aribuable wners f he paren f 8. millin Eur fr he firs six mnhs was saisfying (HY 03:.5 millin Eur), accuned fr by he psiive cnribuin due he accuning reamen f deferred ax incme in cnnecin wih ax-deducible lsses in he firs quarer f 04. Basic earnings per share (EPS) amun 0.4 Eur (HY 03: 0.08 Eur). The peraing cash flw was increased cnsiderably and amuned 9.3 millin Eur in he repring perid as cmpared 6.7 millin Eur in he prir-year perid. Apar frm he higher cnslidaed ne incme (+6.4 millin Eur), anher essenial reasn fr he increase in cash flw frm peraing aciviies is he reducin f rade receivables. The cuback by.6 millin Eur in he repring perid crrespnds wih an increase in rade receivables by 3. millin in he prir-year perid. Capial expendiures fr inangible asses and prpery, plan and equipmen were significanly higher in he firs halfyear due he cninued cnversin f 6 8-inch prducin and he expansin f es capaciy, reaching 7.7 millin Eur (HY 03: 8.7 millin Eur). Despie high capial expendiure, he adjused free cash flw (cash flw frm peraing aciviies less capial expendiures fr inangible asses and prpery, plan and equipmen, less paymens fr invesmens, plus dispsal f invesmens) was increased. In he repring perid Elms generaed a psiive adjused free cash flw f.6 millin Eur, abve he prir-year perid s amun (HY 03: 0. millin Eur). As f June 30, 04 cash and cash equivalens as well as fungible securiies amuned 76. millin Eur, dwn frm December 3, 03 by.0 millin Eur (December 3, 03: 77. millin Eur). Ne cash a 38.4 millin Eur was dwn slighly cmpared December 3, 03 (39.3 millin Eur), amng her facrs accuned fr by he paymen f a dividend in he amun f 4.8 millin Eur. The equiy rai remained sable a 70.5% as f June 30, 04 (December 3, 03: 7.%). Ecnmic envirnmen The majr car markes repred grwh in he s half-year 04 wrldwide. In Wesern Eurpe rughly 6.4 millin vehicles were sld. This equals a 5.5% gain n he prir-year perid. The larges grwh was achieved by Spain (+8%) and Grea Briain (+%) while Ialy, France (+3% each), and Germany (+%) nly shwed belw-average increases in new regisrains. The marke vlume f ligh vehicles (passenger cars and ligh rucks) in he U.S.A. amuned 8, millin unis in he firs half-year. In relaive erms he marke grew by abu 4%. Especially ligh ruck sales perfrmed psiively while he passenger car segmen did n recrd any grwh. The passenger car marke in China remains he glbal au indusry s grwh driver. Wih he marke reaching a vlume 4

5 Inerim grup managemen repr f clse 8.9 millin unis in he firs half-year 04, he VVG GmbH, cmpanies wned by he funders f Elms and Elms presened is prducs a he wrld s leading rade prir-year benchmark was exceeded by 4%. Thus he Chinese day s Supervisry Bard members, Dr. Klaus Weyer and Prf. shws. In he firs half-year 04, Elms shwcased he prduc marke is nw rughly 40% larger han he Wesern Eurpean Dr. Güner Zimmer, placed he Elms shares wih insiuinal lines a embedded wrld 04 in Nuremberg, elecrnica ne. invesrs ff-marke by way f acceleraed bkbuilding n China in Shanghai, and Ligh+Building in Frankfur/Main, June 6, 04, acing as rusees fr frmer Elms sharehlder receiving highly psiive cusmer feedback. Japan als shwed a highly saisfacry develpmen. In he BMW INTEC Beeiligungs GmbH. firs half-year 04, demand fr passenger cars was up % Elms subsidiary SMI (Silicn Micrsrucures, Inc.) has abu.6 millin unis. Paricularly srng was he demand Weyer Beeiligungsgesellschaf mbh cmpensaed a furher develped a new MEMS lw-pressure sensr and ransferred in he year s firs few mnhs as a higher sales ax rae was par f he claims wih wn funds, hus ecnmically increasing i series prducin. The sensr has he wrld s highes inrduced effecive April 04. he share in Elms Semicnducr AG. measuremen precisin f is segmen. Elms als pushed he markeing f an LED cnrller family fr use in rugh Significan evens envirnmens. Furhermre, Elms inrduced a number f Dr. Ann Mindl, CEO, and Niclaus Graf vn Luckner, CFO, prducs fr smar hme sluins. These include min and explained he annual resuls 03 wihin he framewrk f he annual press cnference and he analyss cnference held smke deecrs, amng hers. Finally, in clsing he firs six Sharehlder srucure mnhs, sepper, DC and BLDC drivers were presened. n March 0, 04. The managemen presened he financial resuls fr he firs quarer f 04 n May 6, 04. The CEO Effecive April, 04 Elms increased is shares in he cmpany als infrmed abu he Cmpany s psiive perfrmance by DMOS in Dresden frm previusly 0% 74.8%, resuling in he addressing he Annual General Meeing n May 3, 04. The subsidiary s full cnslidain as f ha dae. sharehlders passed he prpsal fr a dividend f 0.5 Eur per share wih a large majriy. Apar frm he dividend paymen, Based n successes in winning new prjecs, Elms funded he her resluins n he agenda were als respecively a subsidiary in Tky/Japan fr disribuin and applicain decided n wih a significan majriy f he ves. suppr in May 04.,35,789 Elms shares were placed wih insiuinal invesrs, hus seling pre-ipo claims f frmer Elms sharehlders enirely. Weyer Beeiligungsgesellschaf mbh and ZOE Weyer Beeiligungsgesellschaf mbh and relaed paries 0.3% ZOE-VVG GmbH and relaed paries 4.3% Jumaks Beeiligungsgesellschaf mbh 5.% Treasury sck.4% Free fla 48.9% Elms half-year repr January June 30, 04 5

6 Saff develpmen Elms Grup Cmpany bards Supervisry Bard Prf. Dr. Güner Zimmer, chairman Managemen Bard Dr. Ann Mindl, chairman,060 Emplyees,8 Emplyees Graduae physicis Duisburg Graduae physicis Lüdenscheid Dr. Burkhard Dreher, depuy chairman Dr. Arne Schneider, since July, 04 Graduae ecnmis Drmund Graduae ecnmis Hamburg Dr. Klaus Egger Niclaus Graf vn Luckner, unil June 30, Graduae engineer Seyr-Gleink, Ausria Graduae ecnmis Oberursel /3/03 Oher subsidiaries Silicn Micrsrucures Elms Drmund & Duisburg Thmas Lehner Graduae engineer Drmund Sven-Olaf Schellenberg Graduae physicis Drmund Dr. Klaus Weyer Graduae physicis Penzberg Reinhard Senf Graduae engineer Iserlhn Dr. Peer Geiselhar Graduae physicis Elingen Oher disclsures Saff develpmen The Elms Grup s wrkfrce came,8 emplyees as f June 30, 04. Cmpared wih December 3, 03 (,060 emplyees), he saff is hus increased by 5.5%. This is accuned fr essenially by he full cnslidain f DMOS. Elms share Cnsidering he half-year perid, he sck markes shwed a pleasan develpmen despie he pliical and ecnmic crises. Afer a sideways mvemen in he firs quarer f 04, he DAX had a psiive perfrmance in he secnd quarer f 04 s ha a.9% gain was ulimaely achieved ver he firs halfyear 04 as a whle. The echnlgy relevan indusry-specific indices managed scre higher increases, hwever. TecDAX, DAX Secr Technlgy, and Technlgy All Share were up.%, 8.8%, and 0.9% respecively in he firs half-year 04. The Elms share presened a very gd perfrmance in he firs half-year 04 wih a 37.% gain. I clsed a 4.67 Eur n June 30, 04. Marke capializain was 89.8 millin Eur as f ha dae (based n 9.8 millin issued shares). The share reached is high n June 6, 04 a 5.80 Eur and is lw n January, 04 a 0.65 Eur (Xera clsing prices). The average daily rading vlume f he firs six mnhs f 04 came 39.9 shares (Xera and Frankfur flr) and was hus clearly abve he 03 average (.6 shares). Parly by servicing sck pins wih reasury shares, he reasury sck was reduced. As f June 30, 04 Elms Semicnducr AG held 80,85 reasury shares (December 3, 03: 37,697). Mrever, sme. millin shares were reallcaed in June 04 insiuinal invesrs. Mre infrmain abu his can be fund in he chaper Significan evens in his half-year repr. 6

7 Inerim grup managemen repr Oulk Oppruniies and risks Risk managemen and he individual crprae risks and ppruniies are described in ur Annual Repr 03. N maerial changes f he Cmpany s risks and ppruniies as deailed herein have ccurred in he firs six mnhs f 04. N risks are visible a presen ha culd eiher separaely r cllecively jepardize he Cmpany s cninued exisence. Ecnmic framewrk The upswing in Germany ls is mmenum niceably in he spring, accrding he Bundesbank. In April and May he indusry shifed a lwer gear, Germany s cenral bank explained. Hwever, frm he vanage f he Federal Minisry f Finance, he facrs a hand sill indicae a cninuain f he dynamic ecnmic perfrmance especially f he dmesic ecnmy. In he eur area, he mderae ecnmic recvery sped up insignificanly, accrding he If Insiue, wih an increase f he real grss dmesic prduc f 0.3% in he secnd quarer f 04 (afer +0.% he previus quarer). In he hird and furh quarers, he expansin rae is expeced sabilize a ha level. The rebund will prbably invlve a large number f segmens and member saes. The U.S. cenral bank, he Federal Reserve, has an pimisic view f he ecnmic develpmen in he Unied Saes, as is indicaed in he Fed s ecnmic repr frm July 04. The Fed reprs ha he ecnmy kep grwing ver he pas weeks. Ms regins are qued wih psiive assessmens f heir respecive grwh prspecs. As he Bureau f Saisics recenly annunced in Beijing (China), he cunry s ecnmic perfrmance f he secnd quarer gained 7.5% n he previus year s quarer f cmparisn. Fr he full year, he Chinese gvernmen has se a arge f 7.5% as well. The majr risks fr he ecnmic recvery are, accrding he If Insiue, a pssible increase f he savings rai f privae husehlds in he eur area ward he reducin f he parly subsanial deb levels, diminishing demand frm Asia and Lain America, and an escalain f he inernainal cnflics in Easern Eurpe and he Middle Eas which migh lead a srng increase in energy prices. Fr he au indusry, he Presiden f Germany s Assciain f he Aumive Indusry (VDA), Mahias Wissmann, expecs he glbal marke fr passenger cars grw abu 4% 75.9 millin vehicles in 04. Oulk fr he Elms Grup Based n he currenly available infrmain and he perfrmance f he firs six mnhs f 04, he Managemen Bard prvides he fllwing ulk fr he full year 04. The marke recvery reflecs in rders received and sales as described abve. All indicars sugges ha Elms will grw faser han he glbal au marke. Elms slighly raises is frecas fr 04. Managemen is nw expecing sales grwh and EBIT margin range beween 9 and % respecively (previusly: upper single-digi percenage range). Capial expendiures fr inangible asses and prpery, plan and equipmen are budgeed amun n mre han 5% f sales in 04. Managemen furher assumes ha Elms will generae a psiive adjused free cash flw nce again. This frecas is based n an exchange rae f.35 USD/EUR (previusly:.30 USD/EUR). The ulk is based n he premise ha he verall ecnmic siuain will maerialize as described. In ha case Elms will paricipae in he psiive develpmen in he aumive and indusrial semicnducr markes in 04. The elecrificain f hese markes will cninue. A he same ime i is rue ha such expecains can be affeced by marke urbulence. Paricularly he develpmens in Ukraine and he Middle Eas cann be freseen wih respec heir effecs n he glbal ecnmy and ur cre marke. Elms half-year repr January June 30, 04 7

8 Inerim cnslidaed financial saemens Cndensed cnslidaed saemen f financial psiin Asses Nn-curren asses /3/03 Inangible asses 4,806 6,664 Prpery, plan and equipmen 80,96 7,388 Invesmens in assciaes 0 0 Securiies, 50,406 48,987 Invesmens, Oher financial asses 4,04,493 Deferred ax asses 3,634,67 Tal nn-curren asses 63,04 53,674 Equiy and liabiliies Equiy Equiy aribuable wners f he paren /3/03 Share capial 9,76 9,675 Treasury sck 8 38 Addiinal paid-in capial 89,08 88,6 Surplus reserve 0 0 Oher equiy cmpnens 3,457 3,90 Reained earnings 90,33 86,868 95,34 90,559 Curren asses Invenries 44,448 40,480 Trade receivables 36,8 38,450 Securiies,00 03 Oher financial asses,046,905 Oher receivables 8,7 7,007 Incme ax asses Cash and cash equivalens 3,57 7,949 7,97 7,055 Nn-curren asses held fr sale 0 Tal curren asses 7,97 7,76 Tal asses 80,30 70,850 Cf. ne 3 Cf. ne 4 Nn-cnrlling ineress,345,7 Tal equiy 97,687 9,686 Liabiliies Nn-curren liabiliies Prvisins Financial liabiliies 37,64 37,49 Oher liabiliies 4,55 4,650 Deferred ax liabiliies 3,778 3,049 Tal nn-curren liabiliies 46,37 45,68 Curren liabiliies Prvisins 0,6 7,505 Incme ax liabiliies,367,63 Financial liabiliies Trade payables 0,60 9,49 Oher liabiliies 4,004 3,569 Tal curren liabiliies 36,43 3,48 Tal liabiliies 8,64 78,64 Tal equiy and liabiliies 80,30 70,850 Cf. ne 3 Cf. ne 4 8

9 Inerim cnslidaed financial saemens Cndensed cnslidaed incme saemen Fr he perid April hrugh June 30 04/0 in percen f sales 04/0 06/30/03 in percen f sales Change Sales 5, , % Cs f sales 30, , % Grss prfi, , % Research and develpmen expenses 8, , % Disribuin expenses 4, , % Adminisraive expenses 4, , % Operaing incme befre her peraing expenses ( )/incme 4, >00.0% Exchange rae lsses ( )/gains n/a Oher peraing incme,358.6, % Oher peraing expenses >00.0% Earnings befre ineres and axes (EBIT) 5, , >00.0% Finance incme % Finance cs % Earnings befre axes 5,39 0., >00.0% Taxes n incme Curren incme ax expense % Deferred axes n/a, >00.0% Cnslidaed ne incme 4,66 8.0,9.6 >00.0% Cnslidaed ne incme aribuable Owners f he paren 4, ,056. >00.0% Nn-cnrlling ineress % Cndensed cnslidaed saemen f cmprehensive incme Fr he perid April hrugh June 30 04/0 04/0 06/30/03 Cnslidaed ne incme 4,66,9 Oher cmprehensive incme Iems ha may be reclassified he incme saemen in fuure perids including respecive ax effecs Freign currency adjusmens n affecing deferred axes 39 6 Freign currency adjusmens affecing deferred axes Deferred ax (n freign currency adjusmens affecing deferred axes) Value differences relaing hedges Deferred ax (n value differences relaing hedges) 4 58 Changes in marke value f available-fr-sale financial asses Deferred ax (n changes in marke value f available-fr-sale financial asses) Iems ha will n be reclassified he incme saemen in fuure perids including respecive ax effecs Acuarial gains frm pensin plans 9 4 Deferred ax n acuarial gains frm pensin plans 3 3 Oher cmprehensive incme afer axes Tal cmprehensive incme afer axes 4, Tal cmprehensive incme aribuable Owners f he paren 4, Nn-cnrlling ineress 3 6 Earnings per share Eur Eur Basic earnings per share >00.0% Fully dilued earnings per share >00.0% Elms half-year repr January June 30, 04 9

10 Cndensed cnslidaed incme saemen Fr he perid January hrugh June 30 0/0 in percen f sales 0/0 06/30/03 in percen f sales Change Sales 0, , % Cs f sales 59, , % Grss prfi 4, , % Research and develpmen expenses 6, , % Disribuin expenses 9, , % Adminisraive expenses 8, , % Operaing incme befre her peraing expenses ( )/incme 7, n/a Exchange rae lsses ( )/gains n/a Oher peraing incme,3., % Oher peraing expenses % Earnings befre ineres and axes (EBIT) 8,33 8.,836.0 >00.0% Finance incme,5., % Finance expenses ,3.3.% Earnings befre axes 8, ,748.9 >00.0% Taxes n incme Curren incme ax expense , % Deferred axes , % >00.0% Cnslidaed ne incme 8,67 8.,737.9 >00.0% Cnslidaed ne incme aribuable Owners f he paren 8, ,478.6 >00.0% Nn-cnrlling ineress % Cndensed cnslidaed saemen f cmprehensive incme Fr he perid January hrugh June 30 0/0 0/0 06/30/03 Cnslidaed ne incme 8,67,737 Oher cmprehensive incme Iems ha may be reclassified he incme saemen in fuure perids including respecive ax effecs Freign currency adjusmens n affecing deferred axes 7 65 Freign currency adjusmens affecing deferred axes Deferred ax (n freign currency adjusmens affecing deferred axes) 34 6 Value differences relaing hedges 7 5 Deferred ax (n value differences relaing hedges) 4 7 Changes in marke value f available-fr-sale financial asses Deferred ax (n changes in marke value f available-fr-sale financial asses) Iems ha will n be reclassified he incme saemen in fuure perids including respecive ax effecs Acuarial gains frm pensin plans 8 4 Deferred ax n acuarial gains frm pensin plans 6 3 Oher cmprehensive incme afer axes Tal cmprehensive incme afer axes 8,69,554 Tal cmprehensive incme aribuable Owners f he paren 8,530,35 Nn-cnrlling ineress 89 9 Earnings per share Eur Eur Basic earnings per share >00.0% Fully dilued earnings per share >00.0% Cf. ne 3 0

11 Inerim cnslidaed financial saemens Cndensed cnslidaed saemen f cash flws Cash flw frm peraing aciviies 0/0 Eur 0/0 06/30/03 Eur 04/0 Eur 04/0 06/30/03 Eur Cnslidaed ne incme 8,67,737 4,66,9 Depreciain and amrizain,86,399 5,98 5,70 Financial resul Oher nn-cash incme ( )/expense 953, Curren incme ax 948, Expenses fr sck pin plans/sck award plans/share maching plans Changes in pensin prvisins Changes in ne wrking capial: Trade receivables,6 3, Invenries 3,968,39 3,9 67 Oher asses 4,94 389,7 Trade payables 468 3,794,364 Oher prvisins and her liabiliies,64, Incme ax paymens, Ineres paid 89, Ineres received,8, Cash flw frm peraing aciviies 9,96 6,748 7,70 8 Adjusmen f prir-year amuns; please als refer ne in he cndensed nes cnslidaed financial saemens Cndensed cnslidaed saemen f cash flws Cash flw frm invesing aciviies 0/0 Eur 0/0 06/30/03 Eur 04/0 Eur 04/0 06/30/03 Eur Capial expendiures fr inangible asses Capial expendiures fr prpery, plan and equipmen 6,69 7,860 9,56 5,63 Paymens fr ( )/Dispsal f nn-curren asses held fr sale Dispsal f nn-curren asses Paymens fr he acquisiin f shares in subsidiaries plus acquired cash and cash equivalens Paymens fr ( )/Dispsal f securiies,850 6,446,770 9,878 Dispsal f invesmens 0,709 0,709 Paymens fr ( )/Paymens frm her nn-curren financial asses Cash flw frm invesing aciviies 9,66 33,755,095 4,555 Cash flw frm financing aciviies Repaymen f nn-curren liabiliies Repaymen f curren liabiliies banks Purchase f reasury shares 0, Share-based remunerain/issue f reasury shares Capial increase frm cndiinal capial Dividend paymen 4,844 4,84 4,844 4,84 Dividend paymen nn-cnrlling sharehlders Increase f majriy sake Oher changes Cash flw frm financing aciviies 4,487 6,996 4,548 4,89 Decrease in cash and cash equivalens 4,457 34,003 7,933 8,636 Effec f exchange rae changes n cash and cash equivalens Cash and cash equivalens a beginning f repring perid 7,949 55,576 3,39 40,333 Cash and cash equivalens a end f repring perid 3,57,543 3,57,543 Adjusmen f prir-year amuns; please als refer ne in he cndensed nes cnslidaed financial saemens Elms half-year repr January June 30, 04

12 Cndensed cnslidaed saemen f changes in equiy Equiy aribuable wners f he paren Oher equiy cmpnens Nncnrlling ineress Grup Shares Share capial Eur Treasury sck Eur Addiinal paid-in capial Eur Surplus reserve Eur Reserve fr available-fr-sale financial asses Hedges Freign currency ranslain Unrealized acuarial gains/ lsses January, 03 befre adjusmens 9,66 9, , ,306, ,55 87,463,587 90,050 Effecs f firs-ime applicain f IAS 9R January, 03 afer adjusmens 9,66 9, , ,306, ,37 87,00,587 89,589 Cnslidaed ne incme,478,478 59,737 Oher cmprehensive incme fr he perid Tal cmprehensive incme ,478,35 9,554 Share-based remunerain Capial increase frm cndiinal capial Transacin css Purchase f reasury shares 89,336,55,55 Dividend paymen 4,84 4,84 4,84 Dividend paymen nn-cnrlling sharehlders Sck pin and sck award expenses Increase f majriy sake June 30, 03 9,67 9, , ,5, ,905 8,607,93 84,538 Reained earnings Eur Tal Eur Tal Eur Tal Eur January, 04 9,675 9, ,6 0 78,9, ,868 90,559,7 9,686 Cnslidaed ne incme 8,068 8, ,67 Oher cmprehensive incme fr he perid Tal cmprehensive incme ,068 8, ,69 Share-based remunerain/issue f reasury shares Capial increase frm cndiinal capial Transacin css Changes in basis f cnslidain Dividend paymen 4,844 4,844 4,844 Dividend paymen nn-cnrlling sharehlders Expenses fr sck pin plans/sck award plans/share maching plans Oher changes June 30, 04 9,76 9, , ,67, ,33 95,34,345 97,687

13 Cndensed nes he cnslidaed financial saemens Cndensed nes he cnslidaed financial saemens The cndensed inerim cnslidaed financial saemens fr he s half-year 04 were released fr publicain pursuan Managemen Bard resluin in Augus 04. General infrmain Elms Semicnducr Akiengesellschaf ( he Cmpany r Elms ) has is regisered ffice in Drmund (Germany) and is enered in he regiser f cmpanies mainained a Drmund Disric Cur (Amsgerich), secin B, n The Aricles f Incrprain are in effec in he versin f March 6, 999, las edied pursuan Supervisry Bard resluin f January 3, 04. The Cmpany s business is he develpmen, manufacure and disribuin f micrelecrnic cmpnens and sysem pars (applicain specific inegraed circuis, r in shr: ASICs) as well as echnlgical devices wih similar funcins. The Cmpany may cnduc all ransacins suiable fr serving he bjec f business direcly r indirecly. The Cmpany may esablish branches, acquire r lease businesses f he same r a similar kind r inves in hem, and cnduc all business ransacins ha are beneficial he Aricles f Assciain. The Cmpany is auhrized cnduc business in Germany as well as abrad. In addiin is dmesic branches, he Cmpany has sales cmpanies and business lcains in Eurpe, Asia, Suh Africa and he Unied Saes and cperaes wih her German and inernainal cmpanies in he develpmen and prducin f ASIC chips. Basic principles f he preparain f financial saemens The cndensed inerim cnslidaed financial saemens fr he perid January hrugh June 30, 04 have been prepared in accrdance wih IAS 34: Inerim Financial Repring. These financial saemens d herefre n cnain all he infrmain and disclsures required fr cnslidaed financial saemens and shuld herefre be read in cnjuncin wih he cnslidaed financial saemens fr he fiscal year ended December 3, 03. Essenial accuning plicies and valuain mehds Fr he preparain f he cndensed inerim cnslidaed financial saemens, he same accuning plicies and valuain mehds have been adped as were applied fr he preparain f he cnslidaed financial saemens fr he fiscal year ended December 3, 03, wih he excepin f he fllwing new r amended IFRS sandards and inerpreains lised belw. -> IFRS 0: Cnslidaed Financial Saemens -> IFRS : Jin Arrangemens -> IFRS : Disclsure f Ineress in Oher Eniies -> IAS 8: Invesmens in Assciaes and Jin Venures -> Amendmen IAS 3: Offseing Financial Asses and Financial Liabiliies -> Amendmens IAS 36: Recverable Amun Disclsures fr Nn-Financial Asses -> Amendmens IAS 39: Nvain f Derivaives and Cninuain f Hedge Accuning -> IFRIC : Levies Firs-ime applicain f hese sandards r inerpreains did n resul in maerial effecs n he Grup s financial, prfi and ecnmic siuain. Elms half-year repr January June 30, 04 3

14 Adjusmen f prir-year amuns -> Clarificain f accuning reamen f spare pars accrding IAS 6 by Annual Imprvemens Cycle Pursuan IAS 6.8, iems such as spare pars are recgnized accrding he sandard applicable prpery, plan and equipmen if hse pars mee he definiin f an iem f prpery, plan and equipmen. Oherwise such iems are reaed as invenry. Wihin he framewrk f he Annual Imprvemens Cycle, he IASB prvided a clarificain he effec ha spare pars and servicing equipmen mus generally be capialized as prpery, plan and equipmen regardless f wheher r n hey can nly be used in cnnecin wih an iem f prpery, plan and equipmen if nly hey mee he respecive definiin (see IAS 6.6). In previus years Elms repred all spare pars as par f he invenry. In rder cmply wih he IASB s clarificain and he amended IAS 6, spare pars have been reclassified nn-curren asses. This reclassificain was carried u effecive December 3, 03 fr he firs ime. Fr he 6-mnh financial saemens as f June 30, 03, he clarificain described abve did n have be implemened ye s ha he prir-year amuns have been adjused fr his change in hese 6-mnh financial saemens. The fllwing effecs resuled fr he presenain f he cnslidaed saemen f cash flws: 04/0 06/30/03 befre adjusmens Crrecins pursuan IAS 8 04/0 06/30/03 afer adjusmens Cnslidaed saemen f cash flws Depreciain and amrizain 4,657,045 5,70 Changes in invenries Cash flw frm peraing aciviies Capial expendiures fr prpery, plan and equipmen 4, ,63 Cash flw frm invesing aciviies 3, ,555 0/0 06/30/03 befre adjusmens Crrecins pursuan IAS 8 0/0 06/30/03 afer adjusmens Cnslidaed saemen f cash flws Depreciain and amrizain 9,309,090,399 Changes in invenries,803 56,39 Cash flw frm peraing aciviies 5,74,574 6,748 Capial expendiures fr prpery, plan and equipmen 6,86,574 7,860 Cash flw frm invesing aciviies 3,8,574 33,755 Esimaes and assumpins The Cmpany recgnizes prvisins fr pensin and parial reiremen bligains pursuan IAS 9. Fr 04 acuarial ineres raes f 3.% have been applied fr pensin bligains and f.4% fr parial reiremen bligains respecively, unchanged frm December 3, 03. Excepinal business ransacins There were n excepinal business ransacins in he firs half-year 04. Basis f cnslidain The Elms Grup s basis f cnslidain was expanded by w cmpanies in he firs half-year 04. 4

15 Cndensed nes he cnslidaed financial saemens A Japanese subsidiary fr sales and applicain suppr was esablished in May 04, included in he cnslidaed financial saemens in he secnd quarer fr he firs ime. The preliminary fair values f he idenifiable asses and liabiliies f DMOS GmbH a he ime f baining cnrl are as fllws: Furhermre, Elms AG acquired 54.8% f he shares in DMOS Dresden MOS Design GmbH, Dresden ( DMOS GmbH ) fr a purchase price f, which had been fixed in he pas, wih ecnmic effec as f April, 04 by exercising an pin his effec. Up and including March 3, 04, Elms AG accuned fr is 0% sake in DMOS GmbH a amrized cs in accrdance wih IAS 39. Upn he acquisiin f he addiinal sake f 54,8%, Elms AG is nw in a psiin exercise cnrl ver DMOS GmbH wihin he meaning f IFRS 3. Therefre DMOS GmbH has been included as a subsidiary in he cnslidaed financial saemens f Elms AG as f April, 04. The cmpany, esablished in 00, peraes in he semicnducr indusry and primarily acs as supplier f develpmen services in he field f analg and digial circuis as well as prgram develpmens fr esing prducin circuis. The services and sfware sluins ffered by he cmpany find use especially in he realm f aumive applicains. Asses Inangible asses Fair value a he ime f baining cnrl (in ) 48 (heref 43 frm he disclsure f hidden reserves) Prpery, plan and equipmen,8 Cash 567 Trade receivables Receivables frm affiliaed cmpanies 453 Tenan lans 77 Prepaid expenses and accrued incme 67 Oher asses 50 Liabiliies Prvisins 744 Deferred ax liabiliies 45 Trade payables 44 Liabiliies affiliaed cmpanies 898 Oher equiy and liabiliies 9,0 3,936 = al idenifiable ne asses a fair value,94 Nn-cnrlling ineress a fair value 540 Nn-cnrlling ineress as f he acquisiin dae 483 Overpaymen f inangible asses 454 Badwill frm business acquisiin 46 = ransferred cnsiderain Breakdwn f cash inflw due baining cnrl: Cash bained upn he ransiin frm invesmen subsidiary 567 Cash uflw Acual cash inflw due business acquisiin 546 Elms half-year repr January June 30, 04 5

16 The fair value f rade receivables equals he grss amun f rade receivables and cmes. These receivables were n impaired and he enire cnracually deermined amun is prbably recverable. The business ransacin resuled in badwill in he amun f 46 recgnized in her peraing incme in he cnslidaed incme saemen. This incme frm an acquisiin a a price belw marke value is accunable fr by he fac ha he purchase price fr he ms recenly acquired 54.8% sake in DMOS GmbH was fixed a a much earlier pin in ime. Transacin css in he amun f 30 were recgnized as expense and are repred in he cnslidaed incme saemen under adminisraive expenses. The revaluain f he previusly held 0% ineres a fair value resuled in a psiive cnribuin earnings in he amun f 9, repred in he cnslidaed incme saemen under her peraing incme. Seasnal and ecnmic impac n business perains The ecnmic framewrk fr 04 is subjec uncerainy in many respecs. The furher develpmen f he glbal and reginal crises, fr example he crises f cerain eur member saes r he pliical siuain in he Middle Eas and in Easern Eurpe as well as he fuure marke siuain in China cann be prediced s far. The assciaed effecs n he capial and raw maerials markes are equally hard assess. The business f Elms Semicnducr AG shws nly minr seasnal flucuains. Segmen repring The business segmens crrespnd he Elms Grup s inernal rganizainal and repring srucure. The definiin f segmens cnsiders he differen prducs and services supplied by he Grup. The accuning principles f he individual segmens crrespnd hse applied by he Grup. The disclsure pursuan IAS 34 6A (i) read in cnjuncin wih IFRS 3 B64 q is passed n. DMOS GmbH alms exclusively perfrms grup-inernal services s ha he effecs f he eniy s firsime inclusin in he cnslidaed financial saemens can be qualified as immaerial wih regard sales and earnings. Algeher i can be declared ha cmparabiliy wih he prir-year cnslidaed financial saemens wih respec financial, prfi and ecnmic siuain has n been maerially affeced by he firs-ime inclusin f he w new subsidiaries. The Cmpany divides is business aciviies in w segmens. The semicnducr business is peraed hrugh he varius nainal subsidiaries and branches in Germany, he Neherlands, Suh Africa, Asia, and he U.S.A. Sales in his segmen are generaed predminanly wih elecrnics fr he aumive indusry. In addiin ha, Elms peraes in he markes fr indusrial and cnsumer gds and prvides semicnducrs e.g. fr applicains in husehld appliances, ph cameras, insallain and building echnlgy, and machine cnrl. Sales in he micrmechanics segmen are generaed by he subsidiary SMI in he U.S.A. Is prduc prfli includes micr-elecr-mechanical sysems (MEMS) which are primarily silicn-based highprecisin pressure sensrs. The fllwing ables prvide infrmain n sales and earnings (fr he perid January hrugh June 30, 04 and 03, respecively) as well as n asses f he Grup s business segmens (as f June 30, 04 and December 3, 03). 6

17 Cndensed nes he cnslidaed financial saemens s half-year as f June 30, 04 Sales Semicnducr Micrmechanics Cnslidain Grup Third-pary sales 9,686 8,60 0 0,96 Iner-segmen sales Tal sales 9,88 9, ,96 s half-year as f June 30, 03 Semicnducr 3 Micrmechanics Cnslidain Grup 3 Sales Third-pary sales 8,37 7, ,3 Iner-segmen sales Tal sales 8,59 8, ,3 Earnings Segmen earnings 7,086,37 0 8,33 Finance incme,5 Finance css 89 Earnings befre axes 8,656 Taxes n incme 489 Cnslidaed ne incme including nn-cnrlling ineress 8,67 Earnings Segmen earnings, 74 0,836 Finance incme,044 Finance css,3 Earnings befre axes,748 Taxes n incme Cnslidaed ne incme including nn-cnrlling ineress,737 Asses Segmen asses 35,95 6,646 7,683 80,8 Invesmens Tal asses 80,30 Asses (as f December 3, 03) Segmen asses 3,533 6,66 30,68 70,380 Invesmens Tal asses 70,850 Oher segmen infrmain Addiins f inangible asses and prpery, plan and equipmen, ,478 Depreciain and amrizain 3, ,039 Sales frm iner-segmen ransacins are eliminaed fr cnslidain purpses. Nn-aribuable asses as f June 30, 04 include cash and cash equivalens (3,57 ), incme ax asses (478 ), and deferred ax asses (3,634 ), as hese asses are cnrlled a grup level. Oher segmen infrmain Addiins f inangible asses and prpery, plan and equipmen 8, ,654 Depreciain and amrizain, ,399 Sales frm iner-segmen ransacins are eliminaed fr cnslidain purpses. Nn-aribuable asses as f December 3, 03 include cash and cash equivalens (7,949 ), incme ax asses (6 ), and deferred ax asses (,67 ), as hese asses are cnrlled a grup level. 3 Adjusmen f prir-year amuns; please als refer ne in he cndensed nes cnslidaed financial saemens Elms half-year repr January June 30, 04 7

18 Gegraphical infrmain Third-pary sales Half-year ended Half-year ended 06/30/03 Germany 34,496 30,689 Oher EU cunries 5,80 5,889 U.S.A. 9,66 6,7 Asia/Pacific 4,798,35 Ohers 6,539 6,38 Cnslidaed sales 0,96 90,3 Gegraphical disribuin f nn-curren asses /3/03 Germany 46,984 39,63 Oher EU cunries 4,060 4,97 U.S.A. 4,30 4,5 Ohers Nn-curren asses 55,48 48,50 3 Nes n essenial financial saemen iems Seleced nn-curren asses Develpmen f seleced nn-curren asses January hrugh June 30 Ne bk value 0/0/04 Reclassificain Addiins Dispsals/Oher mvemens Depreciain and amrizain Ne bk value 6/30/04 Inangible asses 6,664 5,59 558,96 4,806 Prpery, plan and equipmen 7, ,887 93,3 80,96 Securiies 48, ,350 3, ,406 Invesmens Oher financial asses,493 0, ,04 5,00 0 8,460 5,953 4,039 59,470 Invenries /3/03 Raw maerials 3,804 3,866 Wrk in prcess 34,507 8,73 Finished gds and merchandise 6,37 7,883 44,448 40,480 Equiy As f June 30, 04, he share capial f Elms Semicnducr AG cnsiss f 9,76,458 shares. The Cmpany hlds 80,85 reasury shares. As f June 30, 04, algeher 894,59 pins frm sck pin plans are usanding. The pins are aribuable he separae ranches as fllws: Tal Year f resluin and issue Exercise price in Eur Blcking perid ex issue (years) Exercise perid afer blcking perid (years) Opins usanding as f /3/03 (number) 40,90 35,8 43,50 394,693,04,4 Exercised / 6/30/04 (number) 5,900 55, ,073 Frfeied / 6/30/04 (number),550 5,35 3,05,759,649 Opins usanding as f 6/30/04 (number) 86,460 74,640 40,485 39, ,59 Opins exercisable as f 6/30/04 (number) 86,460 74, ,00 Taxes n incme The firs half-year 04 includes a ne-ff effec wih respec recgnized deferred axes, favring he axes n incme repred in he cnslidaed financial saemens in he amun f,847. The crrespnding recgnized deferred ax asses will prbably be cnsumed enirely in fiscal year 04. The iem Dispsals/Oher mvemens includes negaive currency adjusmens in he amun f 4. 8

19 Cndensed nes he cnslidaed financial saemens 4 Infrmain n financial insrumens The fllwing able liss he bk values and fair values f he Grup s financial insrumens. The fair value f a financial insrumen is he price ha wuld be received fr he sale f an asse r paid fr he ransfer f a liabiliy beween marke paricipans in a regular business ransacin as f he measuremen dae. In view f varying facrs f influence, he presened fair values can nly be regarded as indicars f he amuns acually recverable in he marke. Deailed infrmain n he mehds and assumpins underlying he deerminain f he value f financial insrumens can be fund under ne 9 he 03 cnslidaed financial saemens. Their relevance hese half-year financial saemens is undiminished. Bk values and fair values f financial insrumens /3/03 Bk value Fair value Bk value Fair value Financial asses Invesmens Lng-erm securiies 50,406 50,406 48,987 48,987 Shr-erm securiies,00, Trade receivables 36,8 36,8 38,450 38,450 Cash and cash equivalens 3,57 3,57 7,949 7,949 Oher financial asses Oher receivables and asses,60,60,639,639 Oher lans 3,748 3,748,7,7 Call pin Embedded derivaives Earn-u A he end f he repring perid a review is cnduced find u wheher reclassificains beween valuain hierarchies mus be made. The fllwing presenain shws which valuain hierarchy levels (accrding IFRS 3) financial asses and liabiliies measured a fair value are classified. Hierarchy f fair values The Grup applies he fllwing hierarchy fr he deerminain and repring f he fair values f financial insrumens accrding he respecive valuain mehds: Level : qued (unadjused) prices in acive markes fr similar asses r liabiliies Level : mehds where all inpu parameers wih maerial effec n he deermined fair value are bservable eiher direcly r indirecly Level 3: mehds using inpu parameers ha have maerial effec n he deermined fair values and are n based n bservable marke daa Financial liabiliies Trade payables 0,60 0,60 9,49 9,49 Liabiliies banks 37,605 38,806 37,795 38,8 Oher financial liabiliies Miscellaneus financial liabiliies Pu pin,39,39,39,39 Hedged derivaives (shr-erm) Hedged derivaives (lng-erm),46,46,44,44 Frward exchange cnracs/freign exchange pins Elms half-year repr January June 30, 04 9

20 As f June 30, 04, he Grup held he fllwing financial insrumens measured a fair value: Securiies Level Level Level 3 January, 04 4, Addiin f securiies (lng-erm) 5, Marke valuain f securiies (lng-erm) Marke valuain f securiies (shr-erm) 0 0 June 30, 04 48, Invesmens January, Dispsal f invesmens June 30, Hedged derivaives January, 04 0,665 0 Crrecin f valuain f hedged derivaives uside prfi r lss (shr-erm and lng-erm) June 30, 04 0,737 0 Call pin January, June 30, The securiies repred under hierarchy level are bnds classified by Elms as available fr sale. Plausible alernaive assumpins wuld n resul in maerial changes f he repred fair value. The hedged derivaives allcaed hierarchy level cmprise he Cmpany s ineres rae swaps. In addiin ha, freign currency ransacins (USD) and credi linked nes (embedded derivaives) f varius issuers are als repred under his hierarchy level. The available-fr-sale financial asses repred under hierarchy level 3 are invesmens in varius cmpanies, amng her asses. Wih his respec, he bk value essenially crrespnds he marke value. The call and pu pins agreed n wih a nn-cnrlling sharehlder are measured annually a fair value, ms recenly as f December 3, 03, in applicain f he DCF mehd and in cnsiderain f he erms and cndiins f he cnrac. In he curse f he measuremen prcess, he required publicly available marke daa are clleced and he inpu parameers ha cann be bserved are reviewed n he basis f inernally available curren infrmain and updaed if necessary. Maerial changes f he inpu parameers and heir respecive effecs n bk values are subjec ruine repring managemen. Pu pin January, ,39 June 30, ,39 Frward exchange cnracs/freign exchange pins January, Addiin f frward exchange cnracs/freign exchange pins June 30, Embedded derivaives January, Addiin f embedded derivaives June 30,

21 Cndensed nes he cnslidaed financial saemens 5 Relaed pary disclsures 6 Significan evens afer he end f he firs half-year 04 As repred in he cnslidaed financial saemens fr he fiscal year ended December 3, 03, he Elms Grup mainains business relainships wih relaed cmpanies and individuals in he cnex f he rdinary curse f business. There have been n reprable significan evens r ransacins afer he end f he firs halfyear 04. These supply and perfrmance relainships cninue be ransaced a marke prices. Direcrs dealings accrding Secin 5a WpHG (Securiies Trading Ac) The fllwing reprable securiies ransacins (direcrs dealings) were made in he repring perid January hrugh June 30, 04: Dae Place Name Funcin Transacin Number 06//04 ff-marke 06//04 ff-marke Thmas Lehner Dr. Peer Geiselhar Supervisry Bard member Managemen Bard member Price/Basic price (Eur) Tal vlume (Eur) Sale f Elms shares frm exercise f sck pins, ,08 Purchase f Elms shares ,989 Respnsibiliy saemen T he bes f ur knwledge, and in accrdance wih he applicable repring principles fr inerim financial repring, he inerim cnslidaed financial saemens give a rue and fair view f he asses, liabiliies, financial psiin and prfi r lss f he Grup, and he inerim managemen repr f he Grup includes a fair review f he develpmen and perfrmance f he business and he psiin f he Grup, geher wih a descripin f he principal ppruniies and risks assciaed wih he expeced develpmen f he Grup fr he remaining mnhs f he financial year. Drmund, Augus 6, 04 06//04 ff-marke Reinhard Senf Managemen Bard member Purchase f Elms shares ,989 06/8/04 ff-marke 06/4/04 ff-marke Reinhard Senf ZOE-VVG GmbH Managemen Bard member Sale f Elms shares frm exercise f sck pins 5, ,333 Legal eniy clsely relaed he Supervisry Bard chairman Dispsal 74,894 n quanifiable Dr. Ann Mindl Dr. Arne Schneider Reinhard Senf Dr. Peer Geiselhar 06/4/04 ff-marke Weyer Beeiligungsgesellschaf mbh Legal eniy clsely relaed a Supervisry Bard member Dispsal 39,895 n quanifiable 06/7/04 ff-marke Dr. Ann Mindl CEO Purchase f Elms shares ,989 06/7/04 ff-marke Niclaus Graf vn Luckner Managemen Bard member Purchase f Elms shares ,989 The ransfer f he shares k place wihu valuain fr he selemen f he righ recver pssessin wned by previus sharehlder BMW INTEC Beeiligungs GmbH resuling frm he ime f he IPO f Elms Semicnducr AG (please als refer he press release f Elms Semicnducr AG f June 6, 04). Elms half-year repr January June 30, 04

22 Review repr T Elms Semicnducr AG, Drmund We have reviewed he cndensed inerim cnslidaed financial saemens cmprising cndensed saemen f financial psiin, cndensed saemen f cmprehensive incme, cndensed saemen f cash flws, cndensed saemen f changes in equiy, and seleced explanary nes and he inerim grup managemen repr f Elms Semicnducr AG fr he perid frm January June 30, 04 ha are required cmpnens f a half-year financial repr pursuan Secin 37w WpHG (Securiies Trading Ac). The preparain f he cndensed inerim cnslidaed financial saemens in accrdance wih he IFRS applicable inerim financial repring as adped by he Eurpean Unin and f he inerim grup managemen repr in accrdance wih he regulains f he WpHG applicable inerim grup managemen reprs is he respnsibiliy f he cmpany s managemen. I is ur respnsibiliy issue a repr n he cndensed inerim cnslidaed financial saemens and he inerim grup managemen repr based n ur review. We have perfrmed ur review f he cndensed inerim cnslidaed financial saemens and he inerim grup managemen repr in accrdance wih he German generally acceped sandards fr he review f financial saemens as defined by he Insiu der Wirschafsprüfer (IDW). Thse sandards require he review be planned and cnduced in such a way ha allws us rule u he pssibiliy wih reasnable assurance ha he cndensed inerim cnslidaed financial saemens have n been prepared in maerial respecs in accrdance wih he IFRS applicable inerim financial repring as adped by he Eurpean Unin and ha he inerim grup managemen repr has n been prepared in maerial respecs in accrdance wih he regulains f he WpHG applicable inerim grup managemen reprs. A review is limied primarily inquiries f cmpany emplyees and analyical assessmens and herefre des n prvide he degree f assurance aainable in a financial saemen audi. As we have n perfrmed a financial saemen audi in accrdance wih ur engagemen, we cann issue an audi pinin. N maers have cme ur aenin n he basis f ur review ha lead us presume ha he cndensed inerim cnslidaed financial saemens have n been prepared in all maerial respecs in accrdance wih he IFRS applicable inerim financial repring as adped by he Eurpean Unin r ha he inerim grup managemen repr has n been prepared in all maerial respecs in accrdance wih he regulains f he WpHG applicable inerim grup managemen reprs. Düsseldrf, Augus 6, 04 Warh & Klein Gran Thrnn AG Wirschafsprüfungsgesellschaf Dr. Thmas Senger Ulrich Diersch Wirschafsprüfer wirschafsprüfer

23 Financial calendar 04, Cnac Imprin, Furher infrmain 3 Financial calendar 04 Quarerly resuls Q/04 Augus 6, 04 Quarerly resuls Q3/04 Nvember 5, 04 Equiy Frum in Frankfur Nvember 4-6, 04 The German Securiies Trading Ac (WpHG) bliges issuers annunce immediaely any infrmain ha may have a subsanial price impac, irrespecive f he cmmunicaed schedules. Therefre we cann exclude ha we will annunce key figures f quarerly and annual resuls ahead f he daes menined abve. As we can never rule u changes f daes, we recmmend checking daes and news n he Cmpany s websie ( Cnference calls are usually held n he day afer he annuncemen f quarerly resuls. Cnac Imprin Janina Rsenbaum Invesr Relains Phne + 49 (0) Fax + 49 (0) [email protected] Elms Semicnducr AG Heinrich-Herz-Sraße 447 Drmund Germany Phne + 49 (0) Fax + 49 (0) [email protected] Furher infrmain This inerim repr was released n Augus 6, 04 in German and English. Bh versins are available fr dwnlad n he Inerne a We are happy send yu addiinal infrmaive maerial free f charge n yur reques. This repr cnains saemens direced he fuure ha are based n assumpins and esimaes made by he managemen f Elms. Even hugh we assume he underlying expecains f ur saemens be realisic, we cann guaranee hese expecains will prve righ. The assumpins may carry risks and uncerainies, and as a resul acual evens may differ maerially frm he curren saemens made wih respec he fuure. Amng he facrs ha culd cause such differences are changes in ecnmic and business cndiins, flucuains f exchange raes and ineres raes, he inrducin f cmpeing prducs, lack f accepance f new prducs, and changes in business sraegy. Elms neiher inends nr assumes any bligain updae is saemens wih respec fuure evens. This English ranslain is fr cnvenience purpses nly. Elms half-year repr January June 30, 04 3

24 Elms Semicnducr AG Heinrich-Herz-Sraße 447 Drmund Germany Phne + 49 (0) Fax + 49 (0) [email protected] 4