Crolles, France – December 22^nd, 2023 Tronics, a TDK Group Company that manufactures custom MEMS products and standard inertial sensors for industrial applications, has announced its results for the first half of financial year 2023-20244 (from April 1 to September 30, 2023).

Tronics' Board of Directors met on December 12^th, 2023, and approved the financial results for the first half of financial year 2023-2024, which were presented to the Supervisory Board on the same day.

The half-year financial report has been made publicly available and submitted to the French Market Authorities this day. This report is posted on the company's investors website, in the “Financial Documents” section:

https://www.tronicsgroup-bourse.com

Consolidated HALF-YEAR RESULTS

In accordance with IFRS 5 “Non-current assets held for sale and discontinued operations”, the discontinued operations are identified in a separate line in the financial statements for the first half of financial year 2023-2024 and for the first half of financial year 2022-2023 for comparison purposes.

Revenue for the first half of financial year 2023-2024 of the continuing operations totalled €6.85M, an 8% increase compared with the same period of last financial year (from April 1 to September 30, 2022), driven by the growth of the manufacturing activities, which generated revenues of €6M, an increase of +17% compared to the same period of last year. Engineering activities, dedicated to the development and the industrialization of future customized MEMS products, accounted for €0.8M in the first half of financial year 2023-2024 (versus €1.2M in the first half of financial year 2022-2023).

Consolidated operating income from the continuing operations for the first half of financial year 2023-2024 amounted to +€0.64M compared to +€0.47M. This improvement is mainly due to the increase in revenue and improved operational performance despite the negative impact of price increases on raw materials and energy.

After recognition of a financial loss of €(0.46)M, and a positive net income from discontinued operations (+€2M) related to a foreign exchange impact of the accounting of the loan waiver agreement between Tronics Microsystems SA and Tronics Mems Inc and to a residual impact of the sales of the US activities, the consolidated net income amounted to €2.2M.

Discontinued operations

As previously announced the assets of Tronics US operations were sold in May 2023 and the impact of that sale has been accounted in the financial statements of financial year 2022-2023. The liquidation process of the legal entity Tronics Mems Inc has continued during the first half of the financial year 2023-2024 and is expected to be completed before the end of the financial year 2023-2024.

In accordance with IFRS 5 (Non Current Assets Held for Sale and Discontinued Operations), Tronics MEMS, Inc. operations represent a separate major line of operation and have therefore been classified as “discontinued activities” in the consolidated financial statements.

BALANCE-SHEET STRUCTURE

As of September 30, 2023, Tronics' equity amounted to €(6.8)M. Cash amounted to €13.5M and gross debt to €28.3M, mainly related to the debt towards TDK Electronics AG and TDK Europe SA.

OUTLOOK

In the second half of financial year 2023-2024, Tronics expects a decrease of its revenue compared to the first half of financial year 2023-2024, but an overall growth of its annual revenue compared to financial year 2022-2023 despite the instability of the global economy in a context of monetary tightening. Tronics will remain focused on the ramp-up of the existing product portfolio and new product launches, which will allow for increased sales of innovative MEMS products for high value-added inertial and industrial applications.

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About Tronics Microsystems

Tronic's Microsystems SA is a division of TDK's Sensors Systems Business Company that manufactures MEMS inertial sensors that contribute to the advancement and digital transformation of industrial, energy, railway, marine and aerospace markets. The company is today the only supplier of both MEMS accelerometers and gyros components with a closed loop architecture and a digital SMD interface. The company also offers differentiated foundry services for custom inertial MEMS devices. Founded in 1997, Tronics operates an IATF 16949-certified MEMS clean room and an assembly, packaging and test facility in Crolles, near Grenoble (France). Following the capital increase of December 2021, TDK Electronics AG (formerly EPCOS AG) now holds 87 percent of Tronics' shares.

* ISIN code : FR0004175099 ALTRO

About TDK Corporation

TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan. Built on a foundation of material sciences mastery, TDK welcomes societal transformation by resolutely remaining at the forefront of technological evolution and deliberately “Attracting Tomorrow.” It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK's comprehensive, innovation driven portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK focuses on demanding markets in the areas of information and communication technology and automotive, industrial and consumer electronics. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In the 2023 financial year, TDK posted total sales of USD 16.1 billion and employed about 103,000 people worldwide.