Micron Key fig
Transcription
Micron Key fig
Micronas Group Key figures at a glance Micronas Group Portrait in brief 00 Micronas is an internationally active semiconductor group with holding company headquarters in Zurich (Switzerland). The group develops, manufactures and markets integrated circuits and sensors for the consumer electronics, multimedia and automotive electronics industries. The Micronas strategy is to continue expanding its position as a worldwide semiconductor supplier providing video, sound, data and sensor technology, as well as to use new technological developments to exploit opportunities for long-term business success. Micronas Group’s operational center is located in Freiburg im Breisgau (Germany). Production and the coordination of sales and marketing activities are concentrated there. Research and development are located in Freiburg im Breisgau and Munich/Villach. Micronas also has a test center in Scotland and an in-house sales network throughout Europe, the USA and Asia. The Micronas Group goes back to 1989. After the company was floated on the Swiss Stock Exchange in 1996, since 1999 its shares have also been listed on the Neuer Markt in Frankfurt. Micronas currently employs around 1 400 people. ANNUAL REPORT Net sales Net profit Capital expenditures Research and development expenses Shareholders’ equity Equity ratio in % Cash flow from operating activities Earnings per share Equity per share 2000 1999 2000 1999 CHF 1000 CHF 1000 EUR 1000 EUR 1000 314 40 89 29 144 207 15 33 21 98 490 63 138 46 220 319 460 752 507 437 25.3 92 604 29.71 103.20 332 24 54 34 158 653 821 353 765 024 37.4 82 185 13.29 74.50 973 766 132 875 796 25.3 59 487 19.08 67.79 610 491 922 697 476 37.4 51 292 8.29 46.43 Micronas Group Key figures at a glance Micronas Group Portrait in brief 00 Micronas is an internationally active semiconductor group with holding company headquarters in Zurich (Switzerland). The group develops, manufactures and markets integrated circuits and sensors for the consumer electronics, multimedia and automotive electronics industries. The Micronas strategy is to continue expanding its position as a worldwide semiconductor supplier providing video, sound, data and sensor technology, as well as to use new technological developments to exploit opportunities for long-term business success. Micronas Group’s operational center is located in Freiburg im Breisgau (Germany). Production and the coordination of sales and marketing activities are concentrated there. Research and development are located in Freiburg im Breisgau and Munich/Villach. Micronas also has a test center in Scotland and an in-house sales network throughout Europe, the USA and Asia. The Micronas Group goes back to 1989. After the company was floated on the Swiss Stock Exchange in 1996, since 1999 its shares have also been listed on the Neuer Markt in Frankfurt. Micronas currently employs around 1 400 people. ANNUAL REPORT Net sales Net profit Capital expenditures Research and development expenses Shareholders’ equity Equity ratio in % Cash flow from operating activities Earnings per share Equity per share 2000 1999 2000 1999 CHF 1000 CHF 1000 EUR 1000 EUR 1000 314 40 89 29 144 207 15 33 21 98 490 63 138 46 220 319 460 752 507 437 25.3 92 604 29.71 103.20 332 24 54 34 158 653 821 353 765 024 37.4 82 185 13.29 74.50 973 766 132 875 796 25.3 59 487 19.08 67.79 610 491 922 697 476 37.4 51 292 8.29 46.43 Yves Netzhammer born 1970; lives and works in Zurich. The relationships between nature, technology and the human spirit, between natural, man-made and imaginary realities, are an eternal riddle which confronts us on the boundary between the present and the future. The artist Yves Netzhammer moves along that boundary and gives the riddle form. He captures it in images and shapes which are aesthetic, and yet at the same time could hardly be more modern in their making. Not that these digitally generated images claim to solve the riddle once and for all. They make no promises. They open up a horizon of thought and imagination onto which we can project designs and models, desires and expectations of what lies ahead. That is why Netzhammer never shows stills or freeze-frame shots, but always processes. Each of his visions tells a story which is complete in itself, yet has a continuation in every other story. The processes gradually mesh to form complex programs; the stories merge into a rich mythology of the near future in which the natural, the technical and the imaginary are superimposed without contradicting one another. In this way they represent a formulation of the riddle as it stands at the beginning of the 21st century. In this sense, every one of Netzhammer’s pictures is a sign of our times, the product of a creative dialogue with contemporary technology, art and graphic design. His works have their place wherever the future begins: wherever the great narratives of innovation and invention are unfolding. In a figurative sense, Micronas, as a high-tech enterprise, sees itself permanently confronted by this complex parallelogram of forces. In its response to technological challenges and through the development of countless system solutions over the years, the Micronas Group has been steadily building its “intellectual property.” Key figures Letter to shareholders Front flap 2 MICRONAS IN THE MARKET High-grade products for high-growth markets 6 Consumer Division Comprehensive product portfolio 8 Audio Video Set-top boxes Multimedia Satellite radio 8 12 13 14 15 Automotive Division System solutions for automobiles 16 Controllers Hall sensors 16 20 MICRONAS IN THE YEAR UNDER REVIEW Strengthening our market position Strong increase in sales and profit Expansion of the video business Long-term financing Major research and development effort Further capacity expansion for wafer production New technologies Management system for environmental protection Development of the employee base Comprehensive quality management Successful consumer business Success in the automotive business 24 24 26 26 27 28 28 29 29 33 33 34 MICRONAS PROFILE Five-year comparison Key share data Management structure and governing bodies Subsidiaries and participations Micronas Group management 38 43 46 47 48 Glossary Addresses 50 53 Portrait in brief Back flap To our shareholders Ladies and Gentlemen The Micronas Group produced another outstanding and dynamic performance in 2000. All the key performance indicators showed strong gains. Micronas’ incisive strategy, based on market leadership in selected high-end semiconductor systems for consumer goods and automotive applications, continued to bite throughout the year. Thanks to our market-oriented research and development efforts in 2000 we consolidated our position in our target markets, which are characterized by short product life-cycles and rapid technological advances. The takeover of the Image and Video division of Infineon Technologies in the autumn of 2000 was part of Micronas’ strategic thrust. This acquisition complements the Group’s technology and product portfolios and strengthens our core competencies and market leadership in the fast-growing multimedia markets. We invested CHF 380 million in acquiring this highly profitable business with good prospects for future growth. In the year under review, Group sales rose by 47.4 percent to CHF 490.3 million, of which CHF 59.5 million was contributed by the newly acquired Image and Video division. The operational cash flow was CHF 92.6 million. The net profit for the year more than doubled to CHF 63.5 million, representing a return on net sales of 12.9 percent. Earnings per share in 2000 were CHF 29.71, compared with CHF 13.29 the previous year. The shareholders’ equity of the Micronas Group was CHF 220.4 million at year-end 2000, compared with CHF 158.0 million in 1999. At our waferfab plant in Freiburg (Germany), a two-phase capacity upgrade, begun in May and September 2000, is going according to plan. The new marketing organization, reinforced by Image and Video, is being expanded continually to improve our responsiveness to customers’ needs through closer cooperation. Spending on research and development increased to CHF 46.5 million in the reporting year, compared with CHF 34.8 million in 1999. As a result of the strong growth of our business activities, the number of our employees increased by around 19 percent to 1466. We can be proud of the professionalism and commitment of the people who work for the Micronas Group. In our highly demanding and competitive business environment, only those who have comprehensive systems know-how, excellent market intelligence and unique products will survive and prosper. On behalf of the Board of Directors and management we would like to thank our employees for their contribution to the success of the company and our shareholders for their confidence. 2 3 Dr. Franz Betschon Chairman Dr. Wolfgang Kalsbach CEO MICRONAS IN THE MARKET HIGH-GRADE PRODUCTS FOR HIGH-GROWTH MARKETS The environment in which Micronas is active is characterized by above-average growth rates and short product lifecycles, high levels of investment and very rapid technological change. Our core assets, which have allowed us to achieve solid market positions in specific applications areas, consist of broad-based systems know-how, an intimate knowledge of the target markets, as well as our sophisticated products themselves. We focus on promising, high-growth semiconductor applications in the high-end consumer electronics and automotive sectors. We have successfully established ourselves in the global marketplace as an independent manufacturer of microchips, which has demonstrated a consistent ability to transform our visions into benefits for our international customer base. Our product concepts are uncompromisingly based on the recognition that classic consumer electronics is converging with computer technology and the new media and that system solutions in the area of automotive instrumentation and control have more and more in common with consumer electronics applications. We research and develop products in close cooperation with our customers and also maintain close contacts with academic research institutions. This enables us to identify promising trends just as they are beginning to emerge. Each year, we add 25 to 30 new inventions to our IP portfolio. Micronas is a first-mover in the definition of new markets. Our sales and applications organization is networked across the world and has its operational center in Freiburg im Breisgau (Germany). We are continually expanding this network as well as augmenting it with independent distributors and agents. The takeover of the successful Image and Video business of Infineon Technologies last autumn was a milestone in the expansion of our technology base. This acquisition represents a decisive step forward in the expansion of our consumer electronics business. For the Micronas Group, it is a complementary investment in technology and products, reinforcing our market leadership in key areas of competence in the high-growth multimedia markets. 6 7 COMPREHENSIVE PRODUCT PORTFOLIO Consumer Division The Consumer Division is one of two core business units at Micronas. It produces integrated circuits (ICs) which are used to process video, audio and other data in consumer electronics products. Micronas’ customers throughout the world include all the major manufacturers of TV equipment, radios, satellite receivers, PCs, and other consumer goods. AUDIO Micronas offers a comprehensive range of fully compatible audio processors for various TV and VCR applications in the mid- and high-end market segments. These segments represent more than 50 percent of all TVs manufactured throughout the world and about 25 percent of all VCRs. Our current product range covers all the common analog and digital TV audio standards. Micronas is the world’s only manufacturer to offer an integrated solution that combines all existing audio standards in a single audio processor. Dolby Digital audio processing gives consumers a new standard in audio quality. Manufacturers can easily integrate this audio system into their existing TV equipment architecture. Compared with the competition Micronas has the most wide-ranging, highest performing product portfolio in the audio segment. In the reporting year we sold approximately 33 million Multi Sound Processors (MSPs). Micronas’ strategy of offering global applicability throughout its audio product family has proved extremely successful in the marketplace. By the end of 2000, over 100 million Micronas MSP audio processors were sold for multichannel television audio or simulated surround sound (Dolby Prologic Surround, Virtual Dolby Surround). In the European TV market we achieved a market share of about 80 percent with such processors. Globally, our penetration is probably about 40 percent of the total market. Micronas works closely with its customers to define market requirements at an early stage in development. This enables us to play an important part in shaping new trends at critical points. Utilizing our broad range of audio processors, TV and VCR equipment manufacturers can always select a combination of audio functions (such as base, treble, volume, surround sound, Virtual Dolby Surround and graphic equalizer) and audio standards that precisely meet their needs. In the Advanced Audio market attention is still focussed on the penetration of the MP3 player. MP3 is currently the world’s most widely used standard for compression of digital audio signals. The MP3 player represents a new generation of consumer audio equipment that thrives on the tremendous growth of personal computer use and the rapid spread of the Internet. The Advanced Audio applications (MP3) chip, introduced by Micronas two-anda-half years ago, is now widely used in portable audio players. These devices, based on nonvolatile semiconductor memories, systematically exploit the advantages offered by the PC and the Internet. System advances have led to attractive hybrid devices that can be used for playing music and for digital voice recording. Some MP3 expansion units for existing devices have already established themselves. They offer MP3 functions for mobile phones, talking-book devices, as well as equipment for the toys market. Micronas’ strategy is to gain access to a number of different markets whenever it develops custom chipsets and compression technologies. Wearable audio players – based on flash memory and hard disk technology – MP3 CD players and voice recording devices are already on the market. In the future, Micronas will also offer solutions for high-audio-quality digital recorders. To protect the interests of the music industry, the Secure Digital Music Initiative (SDMI) was launched at the beginning of 1999. This was followed in 2000 by the SD Card Association, which establishes standards for data media copy protection. Micronas supports both these interest groups and is implementing their standards in its new products. We are also continuously developing products for new audio standards such as Advanced Audio Coding (AAC), an extremely fastgrowing market. 8 9 VIDEO Micronas offers compatible components for a wide range of requirements. Our “product family” concept provides manufacturers of television sets with a single development that covers a number of different equipment classes as well as all television standards. Micronas offers complete systems solutions for TV manufacturers who do little or no product development work of their own. In the years ahead, Micronas will systematically integrate more and more functions into its components in order to strengthen its market position in the consumer video sector. This will allow us to adapt to new transmission methods and display technologies. Products Micronas’ video products handle complete video signal processing. This allows the TV set to receive and display all kinds of signals. In addition to standard functions such as brightness, contrast and color saturation, synchronization and scanning, countless image-enhancement functions are integrated into the modules. These products can be used throughout the world in all television set classes. SET-TOP BOXES The term set-top boxes (STBs) refers to TV receivers that are not equipped with their own screens or speakers and are therefore used in combination with a television set. Such set-top boxes allow existing TV sets to operate with new transmission technologies (such as satellite or cable), new transmission standards (such as digital transmission) or pay TV. Besides traditional analog transmission of video and audio information, the future will increasingly see pure digital transmission of TV signals via cable networks, broadcast transmitters and satellites. In time, digital transmission technology is expected to supersede analog technology completely. The STB market is currently dominated by satellite boxes for analog TV or digital pay TV. While we are already seeing signs of initial saturation in satellite pay TV in the industrialized nations (particularly the USA), this technology is just beginning to take off in the newly emerging nations. Micronas is pursuing a strategy of integrating into STBs the audio and video products that are already used in high volumes in TV sets. The characteristics of these integrated circuits (with IC-internal digital signal processing) make them very attractive, especially during the transition phase from analog to digital TV standards. Such ICs already offer digital interfaces for hybrid STBs and allow the STB function to be integrated cost-effectively directly in the television set. Products Digital television is opening up new business opportunities for Micronas in the area of set-top boxes and multimedia PCs. These units convert the new digital transmission data into signals that can be processed or displayed by conventional equipment. Thanks to their hybrid analog/digital architecture, Micronas products are extremely well suited to combined processing of “old” and “new” media. Our offering includes products for audio processing, receiving digital radio signals and decoding analog video and data signals (such as Teletext). A number of large manufacturers in the USA use high volumes of Micronas audio and video products. Compared to the TV market, product cycles in this sector and required delivery lead times are much shorter. 12 13 MULTIMEDIA High-speed bus systems, standardized interfaces and modern operating systems permit high-performance processing of audio and video data in conventional PCs. The PC’s modular design allows the end-user to add additional functions, either directly upon purchase or as subsequent upgrades. More and more new PCs are multimedia-capable. This means they can receive, process or reproduce audiovisual information. Analog signals have to be converted into a digital format before they can be processed in a PC. Based on its long experience as a supplier to TV set manufacturers and as a manufacturer of integrated circuits for the television industry, Micronas offers a full family of ICs for receiving and processing TV signals in PCs. The latest TV tuner cards use this system and also offer surround sound (Dolby Pro Logic Surround, Dolby Virtual Surround). The USB standard (Universal Serial Bus) is starting to dominate the multimedia market. Eventually, all PC input/output devices such as mice, keyboards, modems or speakers will use the same connectors and will therefore be very easy to install. The broad acceptance of the USB standard suggests that it will last. Micronas’ USB chip provides the foundation for an entire family of USB audio components. Additional enhancements include multichannel audio such as Dolby Digital, or adaption of PCs to work with consumer audio equipment by adding a digital audio interface. Micronas has developed an interface module for USB applications that allows digital audio signals to be passed directly to the speakers via the USB bus. By using digital signal processing, the chip is able to implement various features such as equalization, adaptive base enhancement or active frequency modulation. This development aims mainly at the market for PC speaker accessories. The chip can also replace the PC’s sound card, which makes it attractive to PC manufacturers. SATELLITE RADIO In 1990 the US company WorldSpace was founded with the aim of providing a comprehensive multimedia information and entertainment platform for developing and emerging countries with little or no access to modern mass media. These programs are broadcast by satellite so reception should be possible just about everywhere. The company has already taken the first step, broadcasting radio programs via digital satellite radio. For more than two years the WorldSpace “Afristar” satellite has been broadcasting information and entertainment programs to the African continent. Micronas supplies a special chipset used to receive the digital information to three of the four Japanese radio manufacturers involved in the project. Launch of the second satellite, “AsiaStar”, took place in mid-2000. This opened up an additional attractive sales market. 14 15 SYSTEM SOLUTIONS FOR AUTOMOBILES Automotive Division The Automotive Division develops and produces microchips used in a multitude of automotive applications. Such chips are increasingly replacing mechanical components and permit additional functions to be integrated into the vehicle. Micronas’ customers are primarily systems suppliers to the automotive industry. The Automotive Division comprises two product lines: controllers for use in electronic car instrumentation and Hall sensors for engine management, ride control and safety and comfort systems. New product developments are further increasing the existing synergies between the Consumer and Automotive divisions. CONTROLLERS Our microprocessors for electronic instrumentation (“dashboard controllers”) permit a wide range of functions to be displayed in the vehicle. A large number of control displays are integrated on a single Micronas chip. The proportion of electronic instrumentation in vehicles is increasing steadily, which augurs well for market growth. In 2001 it is estimated that the average vehicle will have USD 220 worth of semiconductors. Currently, more than 60 percent of all vehicles produced throughout the world are equipped with electronic instrumentation. The market is extremely demanding in respect of product quality and the supply capabilities of component vendors. Although automotive products are long-lived, competitiveness is governed by short innovation cycles. Micronas collaborates with systems suppliers on research and development projects. This helps us identify market needs and requirements early on. From the very outset, Micronas designs its products so that they can be adapted to changing requirements with a minimum of effort and expense. Our interior concept for vehicles is based on generating benefits for systems suppliers. Large systems manufacturers have to derive synergies from their sheer size. At the same time, they have to keep their products flexible and adaptable, since every vehicle manufacturer has its own individual needs. The interior concept developed by Micronas offers a high degree of flexibility relative to functionality and costs, and it integrates various function modules found in the interior. At the same time, it provides total compatibility. For our customers, this means that developments can be retained and reutilized, which substantially reduces the time and effort required to adapt the system to new requirements. 16 This concept enables us to connect Micronas’ two areas of competence: Automotive and Consumer. For example, our know-how in developing functional modules for TV manufacturers can also be applied to automotive applications. 17 Products Micronas controllers are used in car instrumentation. By implementing several functions on one chip – e.g. indicators for speed, revolutions per minute, maintenance intervals and fuel consumption – Micronas meets car manufacturers’ demands for space-saving solutions. The components are designed in such a way that Micronas can take account of changes requested by the customer right up to the start of production. HALL SENSORS Hall sensors are used to detect magnetic fields by converting them into electrical signals. There are two types of application for Hall sensors: measurement of electrical currents, and detection of mechanical movements and positions without mechanical contact. The Hall sensors themselves are extremely small, which means they are easy to install, even at hard-to-access locations. The most important market for Micronas Hall sensors is the automotive industry. The sensors are already used in numerous applications such as power windows, windscreen wiper systems, camshaft sensors, lamp monitors, active ride control, ABS, power seat and mirror adjustment, fluid level sensors, power sun roofs and speed sensors. The trend in automotive electronics is toward decentralized, networked subsystems. These require electronic sensors combined with integrated intelligent functions. Beyond these applications, Hall sensors are also found in a large number of industrial and consumer applications. Products Micronas currently offers seven different families of Hall sensors covering a wide range of automotive sensor applications. Since each family has several variants with different magnetic characteristics, Micronas has the right product for virtually any application. 20 21 MICRONAS IN THE YEAR UNDER REVIEW STRENGTHENING OUR MARKET POSITION In the reporting year, the Micronas Group succeeded in strengthening its position in key markets and consolidating or further increasing its leadership in specific segments. In a dynamic market environment, the strategic orientation toward high-end semiconductor systems for the consumer goods and automotive industry again proved successful in 2000. Strong increase in sales and profit Consolidated net sales grew strongly, rising from CHF 332.7 million in 1999 to CHF 490.3 million in the year under review. This represents an increase of 47.4 percent. Of this growth, CHF 59.5 million was contributed by Image and Video, included in the scope of consolidation since 1 October 2000. Organic growth was 29.5 percent. Both core businesses contributed to the increase in sales. The Consumer Division generated net sales of CHF 414.3 million in 2000, up 57.9 percent on the 1999 figure of CHF 262.3. This amounted to 84.5 percent of total Group sales for the year under review. In the reporting year, the Automotive Division contributed CHF 76.0 million to overall Group sales, compared with CHF 70.3 million the previous year. This represents a year-on-year growth of 8.1 percent. The division’s contribution to overall sales by the Micronas Group was 15.5 percent. 76 .0 Consumer Automotive Sales by markets 41 4 .3 24 in CHF million 25 Europe Asia USA Other 10.9 1 1 9. 0 .0 53 Sales by region 3 07 .4 A geographical breakdown of sales (cf. chart on page 25) shows Europe is still Micronas’ biggest market. With sales growing by 47.4 percent, the total for this region was CHF 307.4 million. Sales in the US market increased in the reporting year from CHF 27.5 million to CHF 53.0 million, a 93.0 percent increase. In Asia, the Group achieved a year-on-year sales growth of 32.5 percent, from CHF 89.8 million to CHF 119.0 million. Asia’s share in total Group sales in 2000 was 24.3 percent. The growth in earnings in 2000 was even more marked than in the previous year. Net profit for the year of CHF 63.5 million represented a 155.7 percent improvement on the 1999 performance. Of the excellent operating profit of CHF 99.5 million, CHF 85.4 million was generated by the Consumer Division and CHF 16.3 by the Automotive Division; other activities accounted for a loss of CHF 2.2 million. The reported operating profit included nonrecurring profit of CHF 14.7 million from the sale of the participating interest in Micro Analog Systems, Espoo (Finland), as well as profit from the writeback of reserves for completed restructuring projects and other nonrecurring profit. The operational cash flow was CHF 92.6 million, representing year-on-year growth of 12.7 percent. Expansion of the video business The acquisition of the Image and Video business in the autumn of 2000 represents a significant gain in value for the Micronas Group. Image and Video extends the Group’s activities to two new locations, Munich and Villach, where ICs for consumer electronics applications are developed. Munich is also a new stronghold for the sales and marketing organization. As a result of the acquisition, Micronas has a significantly broader, more rounded portfolio of products, know-how and development resources in the consumer sector. Long-term financing The acquisition of the Image and Video business from Infineon Technologies required an investment of CHF 380 million. The purchase price was settled in cash, financed through a loan from a bank consortium led by Credit Suisse First Boston, as well as from our own resources. The credit will be repaid by own funds raised through a capital market transaction which the Extraordinary Shareholders’ Meeting approved on 17 November 2000. Major research and development effort In the reporting year, we spent CHF 46.5 million on research and development, compared with CHF 34.8 million in 1999. R & D expenditure as a percentage of sales was 9.5 percent compared with 10.4 percent the previous year. The switch of Micronas’ key products to the new 0.5µ semiconductor process is largely completed and some of the high-volume products have already been implemented on even smaller structures (0.45µ). Thanks to the capabilities of this higher performance technology, we were able to expand our know-how and create a stream of highly effective new products in all areas of activity. In view of the forthcoming move to digital transmission processes and the growing significance of graphics functions, the first member of a new family of highperformance microcontrollers (ARM™) was introduced by Micronas. On this basis, the first products based on our future 0.25µ technology are currently being developed for the automotive sector. The smaller dimension of the new semiconductor technologies will allow additional system functions to be developed, for example “on-chip” handling of higher frequency ranges. At the same time, it will enable us to provide further cost benefits to our customers. 26 27 The challenge in the year ahead is to combine the technologies of Micronas and Image and Video, which have a high degree of functional complementarity, to create an effective family of products, covering the whole spectrum of TV applications from high-volume analog TV equipment to the complex functions of the new digital TV transmission standards. At the same time, the ongoing development of the products will be secured by appropriate foundry technologies. Further capacity expansion for wafer production Building work on the extension of our waferfab plant in Freiburg, which started in May 2000, was on schedule at all stages of construction. The clean room was qualified in October 2000. The production equipment for the first step in the upgrade, which will increase capacity by 15 percent, was delivered and installed on schedule. Volume production will begin in the second quarter of 2001. Preparations for a second stage in the expansion program, introducing a new production line with 8-inch wafers, are complete. The equipment will be delivered in the first quarter of 2001, and the plant is due to come on stream at the end of 2001. New technologies As of the third quarter of 2000, we have been producing wafers using the new 0.45µ technology. This refinement of the existing 0.5µ technology allows up to 20 percent more microchips per wafer. The introduction of 8-inch wafer production, currently under preparation, is an important prerequisite for future capacity upgrades and new generations of technology. In November 2000, we signed an agreement with the IMEC Institute in Belgium to install and licence 0.25µ production technology. The main thrust of back-end development in 2000 was expansion of capacity for mixed signal testing and the installation of advanced new packaging lines in the assembly department. Besides responding to the rapid growth in volume, these developments also further enhance the competitiveness of back-end operations. We bought in further SoC (system-on-chip) testing systems, 8-inch wafer testers and multisite pick & place test handling systems, thus increasing production capacity in high-end consumer testing, while improving efficiency and the degree of automation. Part of the expansion was implemented at the Glenrothes plant in Scotland. 28 The new high-automation assembly line for the Hall sensor / SMD package started operations according to plan. This will enable us to make significant cost savings, as well as taking account of the very demanding quality specifications for automotive applications. The trend in wafer technology towards ever finer structures and the worldwide standard for semiconductor production plants led to an extension of the clean room for wafer testing, enabling us to make considerable improvements to quality and efficiency. Management system for environmental protection At Micronas, environmental protection is an integral part of all our entrepreneurial activity. We are proud, therefore, to be able to announce that the development of a Management System for Environmental Protection, Industrial Safety and Fire Prevention which is integrated across all our business areas, was completed at the start of 2000. Micronas GmbH in Freiburg received the certification for the system under DIN standards in July 2000. In the reporting year, we also received AAA certification for outstanding safety standards from ACE Insurance S.A.-N.V. Development of the employee base At year-end 2000, Micronas had 1466 employees. This represents an increase of some 19 percent on the previous year. The expansion is linked to the substantial broadening of the business activities of the Micronas Group during the reporting year. 29 31 15 1 105 Employees by activity 2 35 Production Research and development Marketing and sales Administration Quality 9 44 To maintain the high level of professional expertise required in the various specialist areas of our company we further intensified our contacts with technical colleges and universities during 2000. Comprehensive quality management Micronas’ quality management system is certified in accordance with QS-9000 and therefore also complies with the international ISO 9001 standard, as well as the additional requirements of the US automotive industry. Technology developments in wafer manufacture, the introduction of new packages and the expansion of subcontracted packaging and testing activities required a number of product and process qualifications. 32 We conducted comprehensive analyses of pilot runs in an effort to improve production startup, fault detection and output. On-chip repairs on finished ICs allow rapid confirmation of suspected faults and accelerated learning cycles – essential to getting products and technologies to market on time. 33 Continuing improvement of methods to determine the cause of errors and rapid correction cycles have permitted us to remain within the maximum failure rates stipulated by customers and also to set ambitious new targets for the future. Successful consumer business Our consumer business achieved above-average growth in the reporting year. Apart from the general upturn in demand, the new TV and multimedia products in Korea and the United States had a particular impact on the growth of our business activity. Net sales at the end of 2000 were CHF 414.3 million, a 57.9 percent improvement on the previous year. In the television segment, new technologies such as 100-Hz flicker-free sets, LCD and plasma screens, and multichannel surround sound were well received in the market. Since their introduction in 1998, Micronas products have blazed the trail in the area of MP3 music players, which use electronic storage in place of mechanical media. Compared with the previous year, the volume of chipsets sold increased by 65 percent. The latest success in the ongoing development process was the implementation of further digital audio and speech formats. Micronas is a member of various interest groups whose task is to set important standards for the distribution, sale and storage of multimedia content. We serve the PC and set-top box market with building blocks used to make input/output devices for audio and video signals. TV functions and mass storage devices for picture and sound data combined with Internet connections and an efficient operating concept are opening up new market opportunities. The Micronas USB chipset permits direct connection of speakers to a PC without a sound card. Micronas has structured its sales and marketing organization to be close to its customers and provide optimum support at the local level. Integration of the Image and Video business is proceeding along the same lines. Success in the automotive business The automotive business also progressed satisfactorily in 2000. Net sales increased by 8.1 percent to CHF 76.0 million. To achieve further growth in the dashboard controller segment we licensed a new security processor core, which will enable us to meet customers’ performance and development requirements in the year ahead. Around this core, a new concept for interior systems was developed and presented to key customers. Some products based on this platform are already in development. The interior systems platform has excellent expansion potential in terms of further applications, products and customer base. Demand is booming in this segment; our position opens up great opportunities. We expect rapid development of our product range through collaboration with leading customers and certain licensors. In the area of Hall sensors, two very important design advances were achieved in Japan. Both are based on our programmable linear Hall sensor, now marketed worldwide and achieving excellent sales. The success of this component is due not least to the fact that it has already won two innovation awards, and in the current year has been nominated for the most renowned US innovation award. We had to make considerable efforts to expand capacity to cope with booming sales of Hall sensors. Our business with sensors has benefited from a stream of new applications. Thanks to the quality of our technology, we have carved out a special position in this segment which we naturally wish to exploit to the full. As reliability, size and weight are increasingly important considerations in vehicle manufacture, Hall sensors are being used more and more, even replacing the humble switch. To reinforce our market presence in southern Europe and North America, we opened new sales and applications offices in Turin and Detroit. 34 35 MICRONAS PROFILE Five-year comparison Micronas Group Consolidated figures 1 1999 1999 CHF 1000 EUR 1000 CHF 1000 EUR 1000 490 319 – 299 984 314 973 – 192 705 332 653 – 224 058 207 610 – 139 835 Margin in % of net sales 190 335 38.8 122 268 38.8 108 595 32.6 67 775 32.6 Research and development expenses Marketing expenses Administrative and general expenses Other operating income (+)/expenses (–), net Operating profit before amortization of goodwill and gain on disposal of investment, net – 46 507 – 42 958 – 17 185 13 635 – 29 875 – 27 596 – 11 039 8 759 – 34 765 – 28 287 – 6 557 7 631 – 21 697 – 17 654 – 4 092 4 763 97 320 62 517 46 617 29 095 – 2 824 4 957 99 453 20.3 – 1 814 3 184 63 887 20.3 4 716 0 51 333 15.4 2 943 0 32 038 15.4 Financial income and expenses, net Income (+)/loss (–) from associates Other income, net Profit/loss before taxes and minority interest in % of net sales – 11 906 76 531 88 154 18.0 – 7 648 49 341 56 629 18.0 – 8 074 0 212 43 471 13.1 – 5 039 0 132 27 131 13.1 Income taxes Minority interest Net profit/loss for the period – 24 694 0 63 460 – 15 863 0 40 766 – 18 650 0 24 821 – 11 640 0 15 491 Capital expenditures 138 752 89 132 54 353 33 922 Total assets Shareholders’ equity Cash flow from operating activities 872 738 220 437 92 604 573 265 144 796 59 487 422 279 158 024 82 185 263 151 98 476 51 292 1 426 1 466 1 426 1 466 1 219 1 229 1 219 1 229 Net sales Cost of sales Amortization of goodwill, net Gain on disposal of investment, net Operating profit in % of net sales Average number of employees Number of employees at year-end 1 2000 1 2000 Micronas Group including Image and Video activities 1.10. – 31.12.2000 Currency exchange rates CHF/EUR The following exchange rates have been used for the conversion from CHF to EUR: Profit/loss and Cash flow statements Average rate 1.5567 Balance sheet Year-end rate 1.5224 1.6023 1.6047 Consolidated figures 1998 CHF 1000 Net sales Cost of materials Subcontracting Personnel expenses Other operating income (+) and expenses (–), net Depreciation and amortization Operating profit/loss in % of net sales 280 – 36 – 29 – 123 708 215 073 024 1 1998 EUR 1000 175 – 22 – 18 – 76 421 632 168 880 – 92 778 – 50 489 – 50 871 – 18.1 – 57 979 – 31 552 – 31 790 – 18.1 1 1997 CHF 1000 123 – 18 – 14 – 55 066 610 885 799 – 20 630 – 19 525 – 6 383 – 5.2 EUR 1000 76 – 11 –9 – 34 907 630 302 870 – 12 892 – 12 202 – 3 989 – 5.2 1996 EUR 1000 62 – 11 –9 – 26 077 823 647 077 38 –7 –6 – 16 793 388 029 296 1 924 – 7 957 8 497 13.7 1 202 – 4 973 5 309 13.7 905 127 107 083 – 811 0 0 958 – 507 0 0 599 – 3 670 0 0 285 – 56 287 – 20.1 – 35 175 – 20.1 – 6 472 – 5.3 – 4 045 – 5.3 8 644 13.9 5 401 13.9 Income taxes Minority interest Net profit/loss for the period 11 687 –2 – 44 602 7 303 –1 – 27 873 – 1 028 1 – 7 499 – 642 1 – 4 686 – 1 253 –2 7 389 – 783 –1 4 617 Capital expenditures Research and development expenses in % of net sales 90 379 – 38 278 – 13.6 56 480 – 23 921 – 13.6 78 214 – 16 881 – 13.7 48 878 – 10 549 – 13.7 12 881 – 9 995 – 16.1 8 050 – 6 246 – 16.1 Total assets Shareholders’ equity Cash flow from operating activities 292 027 57 657 – 25 159 182 494 36 031 – 15 722 382 239 98 170 80 285 238 870 61 349 50 172 94 808 57 125 5 359 59 248 35 699 3 349 1 477 1 230 1 477 1 230 1 615 1 620 1 615 1 620 399 387 399 387 2 – – – 1 1996 CHF 1000 – 5 872 0 0 456 1 448 203 171 733 2 Financial income (+) and expenses (–), net Income (+)/loss (–) from associates Amortization of goodwill, net Other income, net Profit/loss before taxes and minority interest in % of net sales Average number of employees Number of employees at year-end –1 – – 1 1997 2 Micronas Group 31.12.1998 balance sheet items, excluding Micronas Oy and Analoogdisaini AS Micronas Group including Micronas GmbH 1.10. – 31.12.1997 Currency exchange rates CHF/EUR The following exchange rates have been used for the conversion from CHF to EUR: 1996–1998 Rate on 1.1.1999 1.6002 38 39 Key performance benchmarks Micronas Group in % 2000 Return on equity (ROE) 1 Return on assets (ROA) 2 Equity ratio 3 Net debt to equity 4 Current ratio 5 33.5 11.6 25.3 148.6 1.8 6 1999 1998 23.0 9.2 37.4 – 74.5 2.1 – 57.2 – 11.5 19.7 – 13.9 1.0 1 ROE = Net profit/loss for the period + Minority interest x 100 Shareholders´equity (average) + Minority interest (average) 2 ROA = Net profit/loss for the period + Interest income and expenses, net x 100 Total assets (average) 3 Equity ratio = Shareholders’ equity + Minority interest x 100 Net assets 4 Net debt to equity = Long-term loans + Current portion of long-term liabilities + Short-term borrowings – Cash and cash equivalents – Short-term financial investments x 100 Shareholders’ equity + Minority interest 5 Current ratio = Current assets Current liabilities 6 Micronas Group including Image and Video activities 1.10. – 31.12.2000 Micronas Group 31.12.1998 balance sheet items, excluding Micronas Oy and Analoogdisaini AS Micronas Group including Micronas Intermetall 1.10. – 31.12.1997 7 8 7 1997 8 1996 – 9.7 – 2.5 25.7 – 60.3 1.1 20.0 11.0 60.3 – 17.4 3.0 1997 1996 Key figures Micronas Semiconductor Holding AG in CHF 1000 Total assets Investments Issued capital Shareholders´ equity Net profit/loss Dividend paid 2000 691 649 21 134 7 360 135 460 904 043 0 1999 564 50 21 126 –1 136 352 311 956 177 0 1998 81 19 16 44 – 62 093 595 250 474 910 0 110 19 16 107 3 083 593 250 384 300 0 55 18 13 53 1 686 900 000 036 184 845 Key share data 31.12.2000 Number of registered shares (nominal value CHF 10) Number of dividend-bearing shares as at 31.12. Nominal capital EBIT per share 1 Earnings per share 2 Shareholders’ equity per share 2 146 040 2 136 040 CHF 1000 CHF CHF CHF 21 460 46.56 29.71 103.20 CHF CHF CHF 1 068 404 678 42 CHF 1000 CHF 1000 CHF 1000 2 281 291 862 960 1 448 235 43 EUR EUR EUR 695 245 445 EUR 1000 EUR 1000 EUR 1000 1 484 548 523 330 950 538 Share price and market capitalization Swiss Stock Exchange Share price High Low Year-end Market capitalization 3 High Low Year-end Share price and market capitalization Neuer Markt Frankfurt Share price High Low Year-end Market capitalization 3 High Low Year-end 1 EBIT per share = Operating profit/loss Number of shares (average for the year) 2 Earnings per share = 3 Calculation based on listed shares as at 31.12.2000 Net profit/loss for the year Number of shares (average for the year) Swiss Market Index Performance 1.1.2000 to 31.12.2000 Price in % Micronas AG Swiss Market Index (SMI) 270 250 230 210 190 170 150 130 110 90 October November December October November December September August July June May April March February January 70 Neuer Markt Performance 1.1.2000 to 31.12.2000 Price in % Micronas AG NEMAX All Share 300 275 250 225 200 175 150 125 100 75 September August July June May April March February January 50 Stock exchange trading Micronas registered shares are traded on the Swiss Stock Exchange and on the Neuer Markt in Frankfurt am Main. Switzerland Securities number: 441 600 Ticker symbol: MASN Germany Securities number: 910 354 Stock exchange abbreviation: MNSN Major shareholders As at 31 December 2000, the following shareholders registered in the Share Register controlled a voting stake of more than 5%: MicroValue Julius Bär Multistock SICAV 7.8% 6.4% 44 Shareholder structure at year-end 2000 Number of shares Number of shareholders > 100 000 10 000 – 99 999 500 – 9 999 1 – 499 2 21 147 6 144 Key dates Annual General Meeting 6 April 2001 in Zurich, World Trade Center 3-month results 6-month results 9-month results 27 April 2001 3 August 2001 26 October 2001 45 Management structure and governing bodies Micronas Group (as at 31.12.2000) Board of Directors of Micronas Semiconductor Holding AG Dr. Franz Betschon Chairman of the Board of Directors Dr. Thomas Lustenberger Vice President of the Board of Directors Dr. Rudolf W. Hug Alfred M. Niederer Dr. Leonardo E. Vannotti Micronas Group management Dr. Wolfgang Kalsbach Chief Executive Officer (CEO) Manfred Häner Chief Financial Officer (CFO) Hans-Jürgen Désor Vice President Consumer Klaus Heberle Vice President Automotive Dr. Ulrich Sieben Vice President Technology Nikolaus Kaeppeler Vice President Operations Frontend Wilfried Lowinski Vice President Operations Backend Hans Pfander Vice President Quality Werner Spieth Vice President Human Resources Statutory auditors Statutory auditors and group auditors pursuant to Art. 727 ff. of the Swiss Code of Obligations are Ernst & Young AG, Zurich. The main companies that belong to the Micronas Group are audited by member firms of Ernst & Young. Subsidiaries and participations Micronas Semiconductor Holding AG (as at 7.2.2001) Micronas Semiconductor Holding AG Zurich, Switzerland 100% 100% 100% 100% Micronas Semiconductor SA Neuchâtel, Switzerland Micronas Holding GmbH Freiburg, Germany Micronas Finance Ltd. Guernsey Micronas Semiconductors Inc. San Jose, USA 100% 99.9979% 100% 100% Mantel5 GmbH Munich, Germany Micronas GmbH Freiburg, Germany Micronas Ltd. Glenrothes, Scotland Micronas Asia K.K. Tokyo, Japan 26.6% 100% 100% Nanotron GmbH Berlin, Germany Micronas Munich GmbH Freiburg, Germany Hong Kong 100% 100% Micronas Halbleiterentwicklungs GmbH Vienna, Austria Micronas Korea Ltd. Seoul, Korea 1 46 47 15% innoCom Wireless, Inc. San Diego, USA 1 0.0021% are hold by Micronas Semiconductor Holding AG, Zurich Top, from left: Herbert Alrutz Hans-Jürgen Désor Manfred Häner Klaus Heberle Nikolaus Kaeppeler Dr. Wolfgang Kalsbach Bottom, from left: Wolfgang Kühn Wilfried Lowinski Hans Schwendner Dr. Ulrich Sieben Werner Spieth Nicholas Ververis Dirk Wieberneit 48 49 Glossary Some of the terms and names used are protected by law and are the property of the owner concerned. The trademark and copyright signs that apply to these names and terms do not appear in this glossary. AAC Advanced Audio Coding. An audio compression technology that is part of the MPEG-2 standard. It provides greater compression and superior sound quality than MP3. ADR Astra Digital Radio. Digital audio standard which is already used to receive nearly all German-language radio programs in CD quality via satellite (Astra). Analog In comparison with digital technology, which represents electrical signals as a sequence of numbers to be used for calculation in signal processing, analog circuits process the electrical signals directly. Analog technology is considered to be less flexible than digital technology in many respects. Bonder When integrated circuits are packaged in housings, the electrical connectors on the actual IC have to be “bonded” to those in the housing. The machines used to do this are called bonders. Bus/bus systems In information technology, data is transferred in a predefined way via so-called bus interfaces. Buses can vary according to the specification of the physical transfer path, the data format and the transfer protocol. CMOS Semiconductor technology that allows the production of particularly energy-efficient ICs. CMOS is currently the dominant technology for the manufacture of complex circuits. Compression By compressing digital data, it can be transmitted and stored more efficiently. Modern compression techniques mean, for example, that music only requires about a fifteenth of the capacity originally needed, and video only about a hundredth. These techniques are the basis of future digital television and radio standards and their use will have far-reaching consequences for the handling of multimedia information. Controller Also known as microcontrollers (µC). A combination of a microprocessor and a special control circuit on a dedicated IC. Microcontrollers are used for the control of most electronic and mechanical devices. Examples: instrument panels, radios, televisions, washing machines, etc. Digital TV Digital television or DTV, is a new, much more efficient method of transmitting television. A digital signal can transmit more information than an analog signal using the same range of frequencies (bandwidth). DTV offers in addition advantages such as better picture and sound quality, simultaneous transmission of several programs, teletext and interactive services. Dolby Digital Process for producing television or cinema surround sound with a clear distinction between background and foreground sounds. The process requires five separate audio channels and five loudspeakers arranged around the listener. Dolby Pro Logic Surround Process for producing surround sound using several speakers arranged around the listener. Dolby Virtual Surround Process for producing television or cinema surround in stereo quality that clearly distinguishes between background and foreground sounds. Unlike Dolby Digital, however, this process only requires the two loudspeakers already present in stereo TVs. This illusion only works well if the listener is in a specific position relative to the loudspeakers. Double Scan Process which constructs images twice as quickly as single scan. Used in 100-Hz flicker-free televisions. DRAM Dynamic Random Access Memory. Most common type of digital memory. DRAM technology allows high packing density and a consequently low price. Flash Freely programmable semiconductor memory which retains its content even when the power is switched off. This type of memory is used, for example, in microcontroller architecture so that the microcontroller will retain its characteristics for as long as is required after a single programming. This means that if something goes wrong, new controller versions (Flash versions) can be introduced very quickly into a production process. Foundry Semiconductor plant which does not have its own product development but which manufactures ICs on behalf of and according to the designs of other firms. Hall effect In a semiconductive platelet, the so-called Hall voltage is generated by the effect of an external magnetic field acting perpendicularly to the direction of the current. The size of the current is proportional to the strength of the magnetic field. Hall sensor Solid state semiconductor sensor, which uses the Hall effect to measure the strength of a magnetic field. IC Integrated circuit, chip. ICs are electronic components which can consist of several million functions embedded in a monolithic piece of silicon measured in square centimeters. LCD Liquid crystal display. Technology used to manufacture flat screens. The screen is made in a similar way to ICs, which is why it is still difficult today to produce large-screen diagonals. This biggest commercially available LCD screens currently have a visible diagonal size of 43 cm. Mixed-signal chip A chip which combines circuits for processing analog signals and circuits for processing digital signals. MP3 Currently the most popular compression technique for music. MP3 allows distribution of music over the Internet and has led to the emergence of a new generation of hi-fi equipment. MPEG Process for compressing films. All new digital TV standards are based on this process. MPEG allows the transmission of between four and ten television programs via a single television channel. MSP Multi Sound Processor. A Micronas audio processor that can decode all worldwide TV audio standards. NICAM Process for transmitting digital television audio in superior quality. Used in several European countries since the beginning of the nineties. PIP Picture-in-Picture. Feature of a TV set that allows placing a second or several pictures within the main picture. Plasma picture tube A new method of manufacturing flat screens. The advantage of a plasma picture tube is that the individual pixels actively glow and screens can be manufactured with diagonal dimensions of over one meter. However, the manufacturing process is still very expensive. The first products cost more than CHF 15 000. Product families/families Versions of semiconductor components on the basis of a common design. Product families allow Micronas customers to exchange individual ICs and thus make different products from a single product development process. Progressive scan Process which produces a better resolution on a television screen than a single scan. Progressive scanning is used, for example, in television projection equipment and large-screen TV sets. Set-top box Equipment which sits with the television to facilitate reception of new-generation services and programs. It seems that forthcoming digital television programs will initially be received with the help of a set-top box. Silicon The raw material for silicon can be found in almost limitless quantities in the form of quartz sand (silicic acid). It is the second most common element on earth after oxygen. A third of the earth’s crust is made of silicon. A costly process is required to turn the raw material into the pure form required by the semiconductor industry. In this form, only one foreign atom is present per billion atoms of silicon. Single scan Traditional process for producing an image on a television screen. When televisions were first produced, technical limitations meant that the established speed and resolution of image produced flickering pictures made up of individual lines. At the time this was not found disturbing. SP/DIF A single wire bus established by Sony and Philips for transmitting audio data. 50 Telematics Process for controlling traffic through the use of navigation and communication technologies built into cars. Teletext A broadcasting service that transmits text to a TV set that has a teletext decoder. TQM Total Quality Management. Method for the systematic investigation and comprehensive improvement of a company’s working processes. TQM methods are now used worldwide in all industries. USB Universal Serial Bus. In future this will be the way peripheral equipment is connected to PCs. Unlike previous procedures, USB allows a high rate of data transfer and a practically limitless number of peripherals (printers, scanners, cameras, etc.) VCR Video cassette recorder. Wafer A thin slice of pure silicon onto which active semiconducting circuits – integrated circuits or ICs – are built using a lithographic process. WMA Windows Media Audio. An audio compression technology developed by Microsoft. Yield When used in connection with manufacturing: the ratio of the number of usable products to the number of produced products. 51 Micronas Semiconductor Holding AG Technopark Technoparkstrasse 1 CH – 8005 Zurich Switzerland Phone +41 1 445 39 60 Fax +41 1 445 39 61 Concept, editors: Hirzel.Neef.Rasi.Schmid., Zurich Design: Richard Feurer, Zurich Project management: JBW Werbeagentur GmbH, Zollikon Images: Yves Netzhammer, Zurich Photos: Jonas Kuhn, Zurich Prepress: Sota Repro AG, Zurich Printing: Spefa Druck AG, Zurich 02.01 Micronas Holding GmbH Hans-Bunte-Strasse 19 D – 79108 Freiburg Germany P.O. Box 840 D – 79008 Freiburg Phone +49 761 557 5688 Fax +49 761 557 5690 [email protected] www.micronas.com This annual report is also available in German. The German version is legally binding. 52 53 Micronas Group Key figures at a glance Micronas Group Portrait in brief 00 Micronas is an internationally active semiconductor group with holding company headquarters in Zurich (Switzerland). The group develops, manufactures and markets integrated circuits and sensors for the consumer electronics, multimedia and automotive electronics industries. The Micronas strategy is to continue expanding its position as a worldwide semiconductor supplier providing video, sound, data and sensor technology, as well as to use new technological developments to exploit opportunities for long-term business success. Micronas Group’s operational center is located in Freiburg im Breisgau (Germany). Production and the coordination of sales and marketing activities are concentrated there. Research and development are located in Freiburg im Breisgau and Munich/Villach. Micronas also has a test center in Scotland and an in-house sales network throughout Europe, the USA and Asia. The Micronas Group goes back to 1989. After the company was floated on the Swiss Stock Exchange in 1996, since 1999 its shares have also been listed on the Neuer Markt in Frankfurt. Micronas currently employs around 1 400 people. ANNUAL REPORT Net sales Net profit Capital expenditures Research and development expenses Shareholders’ equity Equity ratio in % Cash flow from operating activities Earnings per share Equity per share 2000 1999 2000 1999 CHF 1000 CHF 1000 EUR 1000 EUR 1000 314 40 89 29 144 207 15 33 21 98 490 63 138 46 220 319 460 752 507 437 25.3 92 604 29.71 103.20 332 24 54 34 158 653 821 353 765 024 37.4 82 185 13.29 74.50 973 766 132 875 796 25.3 59 487 19.08 67.79 610 491 922 697 476 37.4 51 292 8.29 46.43 Micronas Group Key figures at a glance Micronas Group Portrait in brief 00 Micronas is an internationally active semiconductor group with holding company headquarters in Zurich (Switzerland). The group develops, manufactures and markets integrated circuits and sensors for the consumer electronics, multimedia and automotive electronics industries. The Micronas strategy is to continue expanding its position as a worldwide semiconductor supplier providing video, sound, data and sensor technology, as well as to use new technological developments to exploit opportunities for long-term business success. Micronas Group’s operational center is located in Freiburg im Breisgau (Germany). Production and the coordination of sales and marketing activities are concentrated there. Research and development are located in Freiburg im Breisgau and Munich/Villach. Micronas also has a test center in Scotland and an in-house sales network throughout Europe, the USA and Asia. The Micronas Group goes back to 1989. After the company was floated on the Swiss Stock Exchange in 1996, since 1999 its shares have also been listed on the Neuer Markt in Frankfurt. Micronas currently employs around 1 400 people. ANNUAL REPORT Net sales Net profit Capital expenditures Research and development expenses Shareholders’ equity Equity ratio in % Cash flow from operating activities Earnings per share Equity per share 2000 1999 2000 1999 CHF 1000 CHF 1000 EUR 1000 EUR 1000 314 40 89 29 144 207 15 33 21 98 490 63 138 46 220 319 460 752 507 437 25.3 92 604 29.71 103.20 332 24 54 34 158 653 821 353 765 024 37.4 82 185 13.29 74.50 973 766 132 875 796 25.3 59 487 19.08 67.79 610 491 922 697 476 37.4 51 292 8.29 46.43