X-fab Silicon Foundries Se · EURONEXT:XFAB
X-fab Silicon Foundries — Q1 2024 Earnings Presentation
49 slides from X-fab Silicon Foundries's earnings presentation, April 2024
Slide 1: The specialty foundry for the analog world
The SPECIALTY foundry for the analog world Investor presentation // Q1 2024
Slide 2: Disclaimer
Disclaimer Forward-looking information › This presentation may include forward-looking statements. regarding trends or current activities should not be taken as a Forward-looking statements are statements regarding or report that such trends or activities will continue in the future. based upon our
Slide 3: Content
Content 01 About X-FAB 02 Our growth strategy going forward 03 Company news 04 Financial update 3
Slide 4: Key investment highlights
Key investment highlights › Specialty foundry with a comprehensive set of markets with high growth and long lifecycles technologies across market segments › Providing strong design support & IP drives long-term › Expertise in analog/mixed-signal IC production, customer engagement with successful tec
Slide 5: X-FAB at a glance
X-FAB at a glance 6 six manufacturing sites Fabs/subsidiaries Sales offices 907 m$ revenue in 2023 ~4,500 employees representing ~45 nationalities 5
Slide 6: Foundries and their role in the value chain
Foundries and their role in the value chain › Focus on complex technology, design support and › X-FAB does not have own products, as it does not want to manufacturing solutions compete with its customers Semiconductor Process Design IP technology IC wafer IC assembly value chain development IC desig
Slide 7: Analog vs. digital – a clear differentiation
Analog vs. digital – a clear differentiation Analog/mixed-signal Digital › Low capacity and technology capex › High capacity and technology capex › Long product lifecycle › Short product lifecycle › High tech differentiation › Latest technology node differentiation › Large portfolio of process techn
Slide 8: Our comprehensive technology offering
Our comprehensive technology offering Large portfolio of process technologies & IP Strong expertise in Microsystems/MEMS Analog High High › Over 20 years track-record in MEMS offering Technology Digital NVM RF Opto SOI MEMS M/S Voltage Temp › Strong focus on developing differentiated node scalable t
Slide 9: Serving the strongest growing end markets
Serving the strongest growing end markets Automotive Industrial Medical Electrification Smart manufacturing Personal medical devices Safety Smart buildings and cities Medical equipment Comfort & convenience Sustainable energy Lab-on-a-chip 9
Slide 10: We are setting the benchmark in support
We are setting the benchmark in support X-FAB’s close relationships with customers create barriers to entry for competitors. Unique tools Robust for First-Time- design flow Right Long 24/7 PDKs lifetime expert with proven product hotline ESD support Largest IP Application Design offering experts rev
Slide 11: Continuously growing, diversified and global customers
Continuously growing, diversified and global customers We have a diverse base of >400 customers worldwide. No. of automotive customers 68 64 438 41 415 › About 1,930 unique products in production plus 650 new products in prototyping stage 331 <10 193 154 › Top 5 customers accounted for 56% of revenu
Slide 12: Diversified product range
Diversified product range Average revenue per customer per product in 2023 Revenue share per customer in 2023 › Low risk due to highly diversified portfolio of end products Top 1 44.9 % Top 2 4.2 % › About 1,930 unique products in production Top 3 2.9 % › X-FAB is #1 foundry supplier for 8 out of th
Slide 13: Long product lifetimes
Long product lifetimes Many products in production for more than 20 years 2023 Wafer delivery per year 2022 sorted by year of product launch 2021 1.000.000 2020 2019 900.000 2018 800.000 2017 Each color 2016 represents all new Wafer quantity 700.000 2015 2014 product launches in 600.000 2013 a given
Slide 14: Clear future revenue visibility
Clear future revenue visibility Illustrative lifecycle for automotive product Technology Chip First Volume Volume 1st iteration Qualification Safe launch selection design prototype ramp-up production 3 6 5 6–8 9 12 ~ 18 > 66 Months › At least 12 months of finalizing chip design for mass-production ›
Slide 15: Sustainability at X-FAB
Sustainability at X-FAB Our environment. Our responsibility. Our ESG objectives. › X-FAB provides technologies helping to address today’s challenges, such as the need for greener energy to respond to the climate change as well as smart medical solutions for a growing population and aging Drive techn
Slide 16: Sustainability at X-FAB
Sustainability at X-FAB Environment Sustainable Supply Health & Safety › Constantly increasing environmental awareness › Global supplier selection process in place › Environmental, Health and Safety (EHS) policy and responsibility in place to ensure health and safety of our › Suppliers need to follo
Slide 17: Sustainability at X-FAB
Sustainability at X-FAB Human Rights & Ethics Social Commitment Governance › Strong set of corporate values that include › Global and local activities relating to social and › Strictly complying with insider trading rules and customer orientation and innovation educational topics in order to contrib
Slide 18: Content
Content 01 About X-FAB 02 Our growth strategy going forward 03 Company news 04 Financial update 18
Slide 19: Our growth strategy going forward
Our growth strategy going forward › Expand X-FAB’s leading position in analog/mixed-signal portfolio – Microsystems (MEMS), SiC › Maintain focus on resilient and growing end markets – › Grow economy of scale and optimize utilization to automotive, industrial, and medical further improve margins › Co
Slide 20: Semiconductors are key to resolving the challenges of our time
Semiconductors are key to resolving the challenges of our time › Enabling the development of sustainable and energy-efficient products across all sectors › Drives strong growth in X-FAB’s key end markets in the long term – automotive, industrial and medical Climate change Growing & aging populations
Slide 21: Business highlights – Automotive
Business highlights – Automotive › Electrification of mobility drives structural demand for X-FAB’s high-voltage system-on-chip technologies › Number of analog chips required per car keeps increasing driven by new applications › Automotive revenue in Q1 2024 was up 12% year-on-year Automotive revenu
Slide 22: Automotive applications supported by X-FAB
Automotive applications supported by X-FAB › Auto semiconductor market expected to grow at a CAGR of 13% (2021-2030)* In-vehicle network › EV models with chips made by X-FAB inside can CAN/LIN Transceiver count up to 180 CHIPS per unit Infotainment Ethernet Safe-by-wire Touchscreen In-car data bus G
Slide 23: The right technology mix for the electrification of cars
The right technology mix for the electrification of cars Silicon carbide High voltage + NVM CMOS On-chip HV isolation › Silicon carbide gaining momentum as technology › High voltage (up to 100 Volt) in combination with › Galvanic isolation technology required for electric of choice for power applica
Slide 24: Business highlights – Industrial
Business highlights – Industrial › Transition to renewable energy sources drives demand for X-FAB’s industrial SiC applications › Industrial revenue in Q1 2024 was up 12% year-on-year › All-time high SiC revenue in Q1 2024, up 100% year-on-year Industrial revenue 60 50 40 in $m 30 20 10 0 Q2 Q3 Q4 Q
Slide 25: Growth drivers industrial end market: green energy & automation
Growth drivers industrial end market: green energy & automation Sustainable energy Industry 4.0 Smart buildings Smart cities Meeting today’s energy demand Data-driven, AI-based and Centralized management of building Interaction and management of without venturing the livelihood of connected producti
Slide 26: Industrial end applications enabled by X-FAB
Industrial end applications enabled by X-FAB We are supporting four global trends: smart cities, smart buildings, smart manufacturing and sustainable energy. Thermal camera Robotics/cobots Machine to machine Smart home Transportation communication Industrial power Automated test Residential energy s
Slide 27: Ready for the silicon carbide era
Ready for the silicon carbide era X-FAB‘s position SiC benefits › World’s first and leading 6-inch silicon carbide pure-play foundry › Higher conversion efficiency – increases battery range by approx. 8% › Fully integrated high-volume manufacturing fab, automotive certified › Operates at higher temp
Slide 28: Business highlights – Medical
Business highlights – Medical › Growth driven by advances in healthcare that increasingly rely on semiconductor solutions › X-FAB’s microsystems expertise enables innovative medical solutions that are in high demand: strong interest for X-FAB’s new TSV* offering for new generation computer tomograph
Slide 29: Three pillars for growth in medical
Three pillars for growth in medical Personal medical devices Medical equipment Lab-on-a-chip › Contactless thermometer, pacemaker, glucose › X-Ray detectors, ultrasound, CT scan, › DNA sequencing, cancer cell sorting, sepsis meter, hearing aid, cochlear implant, pain mammography, etc. detection, all
Slide 30: Connecting the two worlds of microelectronics and microfluidics
Connecting the two worlds of microelectronics and microfluidics Smart integrated microfluidic systems gaining ground X-FAB – at home in both worlds › Biological and pharmaceutical research is making significant progress assisted › X-FAB’s expertise and experience in microelectronics and microfluidic
Slide 31: Enabling next generation healthcare
Enabling next generation healthcare X-FAB’s medical business benefits from digital transformation in medicine „We are experiencing the digital transformation in medicine. This will INNOVATIONS DRIVE EFFICIENCY IN THE significantly improve HEALTHCARE SECTOR prevention, diagnostics, treatment, and mon
Slide 32: Well positioned for future growth
Well positioned for future growth Mobility Healthcare Energy Strengthening our #1 position as Becoming the foundry of Supporting the transition to automotive pure-play foundry choice for medical green energy 32
Slide 33: Content
Content 01 About X-FAB 02 Our growth strategy going forward 03 Company news 04 Financial update 33
Slide 34: Company news
Company news › Jan: X-FAB's 2023 Christmas donation campaign raised EUR 2,500 for a parents' initiative for children with leukemia and tumors › Feb: virtual tour of X-FAB Sarawak now available on website • explore our offices and cleanroom in Kuching here › 26-29 Feb: APEC Power Electronics show in
Slide 35: Successful launch of 110nm BCD-on-SOI solution
Successful launch of 110nm BCD-on-SOI solution X-FAB launched industry’s first 110nm BCD-on-SOI technology (XT011) in November 2023 › Volume production in Corbeil to commence in 2024 XT011 addresses next generation automotive, medical and industrial smart power applications › Smart motor driver ICs,
Slide 36: Content
Content 01 About X-FAB 02 Our growth strategy going forward 03 Company news 04 Financial update 36
Slide 37: Q1 2024 at a glance
Q1 2024 at a glance Revenue* & bookings by quarter Key takeaways 300 › Q1 revenue at USD 218.7 million*, up 5% year-on-year CMOS Microsystems/MEMS SiC Bookings › Revenue in X-FAB’s key end markets auto, industrial, and medical, up 9% year-on-year* 250 › All-time high SiC revenue at USD 26.3 million*
Slide 38: Quarterly overview
Quarterly overview in millions of USD, growth vs. growth vs. Q1 2024 Q1 2023 Q4 2023 except otherwise stated Q1 2023 Q4 2023 Revenue 216.2 208.1 237.7 4% -9% Gross profit 50.4 57.2 63.6 -12% -21% % margin 23.3% 27.5% 26.7% EBIT 27.2 37.4 35.6 -27% -24% % margin 12.6% 18.0% 15.0% Net profit 23.1 42.7
Slide 39: Quarterly revenue by market segment and technology
Quarterly revenue by market segment and technology Q1 y-o-y in millions of USD Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 growth by market segment 98.3 96.9 104.4 120.9 131.1 135.3 151.8 135.6 12% Automotive Industrial 42.5 46.7 42.3 46.9 51.3 53.7 54.3 52.6 12% Medical 13.9 13.
Slide 40: Successful business portfolio transformation
Successful business portfolio transformation Business mix Q4 2016 Business mix Q1 2024 Industrial 8% Medical Automotive 2% 62% Automotive 37% Share of core business Industrial CCC 52% with long lifecycles and higher 24% value-add has grown systematically CCC Medical 7% 7% 48% 93% Core business Core
Slide 41: Prototyping revenue development
Prototyping revenue development Prototyping revenue per quarter Prototyping revenue by market segment (full year 2023) › Q1 2024 prototyping revenue at USD 23.2 million, down 12% year-on-year and 15% quarter-on-quarter 30 IP sale* CCC NRE Revenue 25 16% Automotive Moving 4Q average 22% 20 Medical 11
Slide 42: Natural hedging of the business
Natural hedging of the business Revenue by currency Costs by currency (full year 2023) › Euro share of sales in Q1 2024 at 38% › No FX impact on EBITDA thanks to natural hedging of the business 1.000 MYR SGD 900 6% 1% 56% 800 700 58% 600 63% in $m 84% 81% EUR 500 87% 75% 37% 68% USD 400 56% 44% 300
Slide 43: Cash position
Cash position Net debt development Solid cash position in millions of USD 31 Mar 2024 31 Mar 2023 31 Dec 2023 › Solid cash position to sustain strong growth – reinvesting cash into capacity expansions Cash & cash equivalents 351.5 350.3 405.7 • to be complemented by additional credit line › Major ca
Slide 44: Profitability
Profitability › Q1 2024 EBITDA margin at 23.6% - excluding impact from IFRS 15, EBITDA margin at 24.0%, at the lower end of the guided 24-27% › Profitability decline mainly related to lower demand for 150mm CMOS wafers Gross profit EBITDA 70 40% 70 40% 60 60 30% 30% 50 50 40 40 in $m in $m 20% 20% 3
Slide 45: Outlook
Outlook Bookings & backlog Guidance › Record quarterly bookings up 20% year-on-year and 21% quarter- › Q2 2024 revenues in the range of USD 200-210 million on-quarter › Q2 2024 EBITDA margin in the range of 20-23% 600 › Based on an average exchange rate of 1.08 USD/EUR 500 400 Full-year guidance rec
Slide 46: Appendix
Appendix Further financial numbers and business information 46
Slide 47: Financial key figures 2018-2023
Financial key figures 2018-2023 in millions of USD, CAGR 2018 2019 2020 2021 2022 2023 except otherwise stated 2018-2023 Revenue 587.9 506.4 477.6 657.8 739.5 906.8 9% % growth 1.1% -13.9% -5.7% 37.7% 12.4% 22.6% Gross profit 104.0 27.3 43.7 150.0 176.0 258.1 20% % margin 17.7% 5.4% 9.2% 22.8% 23.8%
Slide 48: Annual revenue by market segment and technology
Annual revenue by market segment and technology CAGR in millions of USD 2018 2019 2020 2021 2022 2023 Growth 2018-2023 by market segment Automotive 284.0 243.8 236.0 331.7 389.3 539.1 38% 14% Industrial 96.2 91.9 97.1 145.6 172.9 206.2 19% 16% Medical 24.0 28.2 33.5 47.9 55.8 67.3 21% 23% Subtotal c
Slide 49: X-FAB shareholder structure
X-FAB shareholder structure 25.0 39.2 Elex NV Sensinnovat BV Sarawak Technology Holdings Sdn. Bhd. Public 24.4 11.4 49
X-FAB Silicon Foundries — Q1 2024 Earnings Presentation on 6ix