Melexis (MELE) investor relations material

Strategic direction and transformation

• The company is shifting from a purely automotive focus to a diversified portfolio, targeting Robotics, Alternative Mobility, Digital Health, and Sustainable World as new growth vectors alongside automotive.

• Strategy is anchored on technology leadership, customer intimacy, fabless model, and system solutions, with a strong push to move up the value chain by offering modules and integrated solutions beyond traditional ICs.

• Innovation, operational excellence, and people development are core themes, with a focus on upskilling, reskilling, and fostering diversity to drive high performance.

• China and Asia are critical for future growth, with local supply chains, teams, and product customization to address market speed and needs.

• The company aims to become 'antifragile,' using external pressures to adapt and strengthen, ensuring resilience and long-term competitiveness.

Market trends and business opportunities

• Automotive remains core, but the company is pivoting to high-growth markets such as Robotics, Alternative Mobility, and Digital Health, with Robotics and Alternative Mobility as near-term boosters.

• Five automotive growth drivers are prioritized: EV powertrain, thermal management, battery, e-braking/e-steering, and lighting, with a combined CAGR of 11% expected for these segments from 2025 to 2030.

• Non-automotive markets are expected to outgrow automotive, with significant opportunity in Robotics due to high sensor and driver content per unit, especially in humanoid robots.

• China is leading in electrification, premiumization, and automation, making it a key market for both automotive and Robotics growth.

• Global vehicle production is expected to grow modestly (+1% CAGR), with electric vehicles and hybrids gaining share, especially in China.

Innovation and product development

• Product launches have accelerated, with 19 launches planned for 2025 and a growing share targeting non-automotive applications.

• The company is moving from ICs to system solutions, exemplified by the Tactaxis tactile sensor and fingertip module for Robotics.

• R&D allocation is shifting, with 25% now dedicated to non-automotive, and a focus on faster, more iterative development cycles.

• AI and advanced packaging are increasingly integrated into products, supporting both operational efficiency and new application areas.

• The innovation pipeline is robust, with a balanced approach between automotive and non-automotive, and a focus on de-risking and accelerating time-to-market.