Iqe Plc · LSE:IQE
Iqe — FY2020 Earnings Presentation
17 slides from Iqe's earnings presentation, Mar 25, 2021
Slide 1: FY 2020 Results
FY 2020 Results 25 March 2020 IQE plc
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by IQE plc solely for information purposes trustees of high value trusts as described in Article 49(2) of the Order and any and should not be considered to be an offer or solicitation to buy, sell or other persons who fall within other applicable exempt
Slide 3: 2020 Business Performance: Financial Highlights
2020 Business Performance Financial Highlights Revenue Wireless revenues Photonics revenues EBITDA (adj.) Positive cash position £178m £94m £82m £30m £2m Record revenue performance Up Up Up Up 27% 38% 17% 85% £23m year-on-year year-on-year year-on-year year-on-year Free Cashflow* • Strong growth • I
Slide 4: 2020 Strategic Progress
2020 Strategic Progress Investing in the future Scaling up the Expanding Margins of compound semis business for growth and Cashflows Strategic Goal Strategic Goal Strategic Goal • Leveraging and expanding the IP portfolio • Expand Group capacity • Superior unit economics from superior yields and • D
Slide 5: FY 2020 Financial Results
FY 2020 Financial Results Tim Pullen, CFO 5
Slide 6: Summary Financials
Summary Financials £’million FY 2020 FY 2019 Revenues 178.0 140.0 Adjusted EBITDA1 30.1 16.2 Adjusted operating profit / (loss) 5.4 (4.7) Reported operating profit / (loss) (5.5) (18.8) Reported PAT (2.9) (35.1) Net Cashflow from Operations (Adjusted) 36.3 16.5 Net Cashflow from Operations (Reported
Slide 7: Financial Performance
Financial Performance Record revenue performance and return to profitability Revenue £’m EBITDA (adj.) £’m Operating Profit (adj.) £’m 27 37 22 178 155 156 32 16 30 133 140 26 5 16 -5 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Revenue up 27% YoY Adjusted EBITDA increa
Slide 8: Business Unit Segmentation
Business Unit Segmentation Revenue segmentation FY20 FY19 Operating profit FY20 FY19 Business Unit £’m segmentation breakdown £’m Wireless Revenue 94.2 68.2 100% 100% Wireless Revenue 11.4 6.6 15% Photonics Revenue 81.6 69.8 37% 75% 75% Photonics Revenue 9.1 1.3 29% CMOS++ 2.2 2.0 50% 50% CMOS++ (0.
Slide 9: Capex, Cashflow and Net Debt
Capex, Cashflow and Net Debt Capex Cashflows £’m Net Cashflow from Operations Net Cash/Debt (Adj.) £’m (Adj.) £’m 32 36 46 30 31 21 2 11 24 11 5 -16 17 17 FY16 FY17 FY18 FY19 FY20 -40 Other Expansion Asset Finance FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Reduction in capital expenditure Str
Slide 10: Outlook
Outlook • Trading has continued positively into 2021. Revenues for Wireless GaAs epiwafers are strong in the context of continued 5G handset market penetration and demand for 3D sensing, advanced sensing applications, and communications products continues to remain positive. • IQE is well positioned
Slide 11: Technology Update
Technology Update Drew Nelson, CEO
Slide 12: IQE's technologies address three vital applications
IQE's technologies address three vital applications: Satellite Office Communications Communications Big Data 5G Small Cell Networks AI Security Smart Grids Energy Communications Infrastructure WiFi Generation Hyper Scale 5G Base Stations Data Centers Augmented Reality Personal Devices Connectivity S
Slide 13: IQE's technologies are critical for 5G infrastructure
IQE’s technologies are critical for 5G infrastructure 5G 5G Network Network Infrastructure Infrastructure • IQE GaN technologies are a core component of the antenna elements of 5G mMIMO base stations and small 5G NR Base Stations Shipments cells with vastly superior performance and power efficiency
Slide 14: IQE Handset Content increases with 5G development
IQE Handset Content increases with 5G development 5G Handsets HBT PAs HBT PAs • IQE’s GaAs technologies are a critical element of the Front- HBT PAs BiHEMT PAs End Module of handsets BiHEMT PAs Porous Si Switches Proximity sensors • 5G handsets have more GaAs content than 4G, as the SAW & BAW Filter
Slide 15: IQE is a pioneer of 3D Sensing Technology
IQE is a pioneer of 3D Sensing Technology Beyond the Handset Future Opportunities IQE plc FY 2020 Results – 25 March 2021 15
Slide 16: Technology Evolution
Technology Evolution Short Term Medium Term Long Term 5G Infrastructure Advanced RF and Continued 5G Infrastructure Rollout: Environmental Monitoring Rollout: Sensing: • GaN for mm Wave / small cell networks Commercial and industrial Sensing • GaN on SiC and PIN • GaN on SiC for comms • GaN on SiC a
Slide 17: Summary
Summary • Record revenue performance in 2020 with 27% YoY growth and strong cash flow resulting in a net cash positive position of £2m • Deployment of 5G technologies will be a multi-year, mega replacement cycle and we are at the beginning of this progression • Our product portfolio positions IQE to