X-fab Silicon Foundries Se · EURONEXT:XFAB
X-fab Silicon Foundries — X-Fab — Investor Day (December 2024)
46 slides from X-fab Silicon Foundries's investor day presentation, Dec 4, 2024
Slide 1: X-FAB Capital Markets Update
X-FAB Capital Markets Update December 4, 2024
Slide 2: Disclaimer
Disclaimer Forward-looking information › This presentation may include forward-looking statements. Forward- trends or activities will continue in the future. We undertake no looking statements are statements regarding or based upon our obligation to update or revise any forward-looking statements, m
Slide 3: Investor Day 2023: A brief look back
Investor Day 2023 A brief look back Strong demand across all end markets & technologies › strong automotive & industrial growth driven by “electrification of everything” Strong desire to secure supply › chip shortage & allocation scenario › introduction of long-term agreements with customers › decis
Slide 4: What has changed?
What has changed? Inventory corrections following a period of high inventory build-up Destocking and short-term ordering behavior › end of capacity allocation globally › global uncertainties and geopolitical tensions impacting customers’ behavior › deceleration of global SiC power market growth due
Slide 5: What has not changed?
What has not changed? X-FAB prototyping X-FAB volume revenue ($m) production revenue ($m) 30 300 › Strong underlying growth drivers 25 250 › Benefiting from long-term agreements 180nm prototyping with customers 20 200 › Continued strength of X-FAB’s 180nm 15 150 CMOS business 10 100 180nm production
Slide 6: Our business
Our business Where we stand today & expectations going forward 6
Slide 7: X-FAB's business
X-FAB’s business Focus on three end markets Automotive Industrial Medical 7
Slide 8: X-FAB's business – Automotive
X-FAB’s business – Automotive X-FAB delivers into combustion cars and EVs Comfort & In-vehicle network convenience CAN/LIN Transceiver Window & door control Ethernet Intelligent key systems Safe-by-wire Climate control In-car data bus Seat control Mirror & wiper control Adaptive cruise control Inter
Slide 9: X-FAB's business – Automotive
X-FAB’s business – Automotive Electronic content increase and transition to electric mobility for long-term growth Automotive revenue › Strong design pipeline with high-growth in m$ applications, e. g. battery management, 800 thermal management, etc. › Strong growth in 180nm CMOS 600 • still capacit
Slide 10: X-FAB's business – Industrial
X-FAB’s business – Industrial “Electrification of everything” and “smart everywhere” Renewable energy driving growth in industrial › Residential energy storage › Inverter for PV › Gate drivers for wind turbines Data center & AI Smart cities & › Power management › Thermal management buildings › Photo
Slide 11: X-FAB's business – Industrial
X-FAB’s business – Industrial Industrial revenue in m$ › Diverse and highly fragmented business FC CAGR 2024-2027 250 › Industrial applications continue to leverage SiC 12% X-FAB’s robust technologies 200 › Current headwind due to inventory 150 corrections › SiC growth supported by continued strong
Slide 12: X-FAB's business – Medical
X-FAB’s business – Medical Medical equipment › Medical ultrasound › Xray › CT scanner Personal medical devices › Hearing aids, cochlear Lab-on-a-chip implants › Pacemaker › Drug testing & › Contactless thermometer development › Glucose meter › Fast sepsis detection › DNA sequencing 12
Slide 13: X-FAB's business – Medical
X-FAB’s business – Medical High-value added business driving efficiency in healthcare Medical revenue in m$ › Highly differentiated products exploiting 100 X-FAB Microsystems expertise • 3D wafer scale integration, noble metals, 80 thermopiles, etc. 60 FC CAGR › High-potential applications 2024-2027
Slide 14: X-FAB's business – CCC*
X-FAB’s business – CCC* Playing out the strengths of X-FAB CCC revenue in m$ 140 › CCC business focused on cross-selling X-FAB technologies 120 FC CAGR • low-margin legacy business phased-out 100 2024-2027: completely 80 1% › Niche applications benefiting from 60 X-FAB’s high-voltage or sensors 40 e
Slide 15: X-FAB's business – by region
X-FAB’s business – by region Revenue share by region Automotive revenue FC 2024 in m$ Asia-Pacific 140 63% 23% 120 share of China auto biz 100 80 60 FC CAGR 9% 2024-2027: 68% 40 9% 14% 20 0 EMEA North America Asia Pacific 2020 2021 2022 2023 FC 2024 FC 2025 FC 2026 FC 2027 Strong auto growth in Chin
Slide 16: Expansions & capex
Expansions & capex Expand to meet demand 16
Slide 17: Ensuring the future success of X-FAB
Ensuring the future success of X-FAB Continue to invest in R&D to stay at the forefront of innovation • CMOS roadmap • high-performance SiC and microsystems Execute manufacturing expansions to ensure reliable supply going forward • focus on 180nm & 110nm CMOS capacity in Malaysia and France • furthe
Slide 18: Manufacturing expertise worldwide
Manufacturing expertise worldwide Specialty CMOS, Microsystems and Power (SiC & GaN) Itzehoe, Germany Dresden, Germany Lubbock, USA Microsystems CMOS & GaN SiC & 6“ CMOS Kuching, Malaysia CMOS Erfurt, Germany Microsystems & 6“ CMOS Corbeil-Essonnes, France CMOS 18
Slide 19: Expansions and capex – 180nm/110nm CMOS
Expansions and capex – 180nm/110nm CMOS 180nm/110nm CMOS revenue Status expansion program 2023-2025 in m$ 600 › Sites: Kuching and Corbeil-Essonnes › Total capex: USD 750 million 400 • 85% completed FC CAGR 2024-2027: › Fully available by: Q3 2026 22% 200 › Capacity increase from Q4 2022: +170% › Re
Slide 20: Construction area
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Slide 21: Construction
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Slide 22: Warehouse, new clean room, central utility building
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Slide 23: X-FAB Sarawak
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Slide 24: Clean room area
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Slide 25: X-FAB France
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Slide 26: Expansion area, X-FAB France
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Slide 28: Expansions and capex – Microsystems
Expansions and capex – Microsystems Microsystems revenue Status expansion program 2023-2025 in m$ › Site: Erfurt 180 160 › Total capex: USD 59 million 140 120 • 40% completed 100 FC CAGR › Capacity increase: +60% 80 2024-2027: 60 23% › Fully available by: Q1 2026 40 › Revenue contribution 2024: 11%
Slide 29: 29
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Slide 30: Microsystems fab
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Slide 31: X-FAB Erfurt
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Slide 32: Expansions and capex – Silicon carbide
Expansions and capex – Silicon carbide Silicon carbide revenue Status expansion program 2023-2025 in m$ › SiC invest halted due to market weakness 100 › Capex spent: USD 100 million 80 › Prepared for strong growth without additional 60 invest: FC CAGR 2024-2027: • installed capacity: 7,500 wspm 40 2
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Slide 34: CMOS & SiC, Implant & EPI
CMOS & SiC CMOS & SiC Implant & EPI 34
Slide 35: X-FAB Texas
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Slide 36: X-FAB Texas
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Slide 37: Expansions and capex – Other technologies
Expansions and capex – Other technologies GaN › expansion to establish GaN base capacity in Dresden completed 350nm CMOS › continuous invest in automation for productivity improvements › initially planned outsourcing to third parties halted due to business softening 0.6-micron CMOS on 150mm wafers ›
Slide 38: Digital Transformation: Automation roadmap
Digital Transformation: Automation roadmap Level 1: Level 2: Level 3: Level 4: Automated Automated Automated Automated decision on equipment transport to loading to material move setup equipment equipment › Status › Benefits • all sites engaged in level 1 and 2 • more capacity, improved quality and
Slide 39: Financial model
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Slide 40: Successful business transformation
Successful business transformation Increased share of high-value add automotive, industrial and medical business Pre-IPO Today Q4 2016 Q3 2024 Core business: automotive, industrial & medical 48% 93% CCC: Consumer, Communications & Computer Core business Core business 40
Slide 41: Profitability set to increase
Profitability set to increase Key drivers for profitability improvement going forward Top line growth › strong 180nm CMOS design pipeline › recovery of SiC business › growth of Microsystems business › CCC business with higher profitability Increasing share of high value-added › transition to more an
Slide 42: Investing to support strong growth
Investing to support strong growth Capex evolution* Capex 2023-2025 600 USD 1.1 bn › Expansion projects will be completed 500 in H1 2025 • positive free cash flow in H2 2025 400 › Back to normalized capex level in 2026 and beyond: in m$ 300 • capex ratio of 15% 200 • thereof maintenance capex: 5% 10
Slide 43: Capex per technology and financing
Capex per technology and financing Capex per technology Financing structure 2023-2025 2023-2025 Credit lines USD 400-450m Generated cash USD 600-650m LTA prepayments CMOS 180nm/110nm SiC Microsystems Others* USD 300m 66% of X-FAB’s capex program to support Financing of USD 1.1 bn capex in the period
Slide 44: Financial targets
Financial targets Target Outlook 2026 FY 2030 Revenue USD ~1.05 billion USD ~1.5 billion EBITDA margin ~30% ~35% CAPEX USD ~160 million USD ~225 million 15% of revenue 15% of revenue Free cash flow* USD ~155 million USD ~300 million *EBITDA minus capex 44
Slide 45: Key take-aways
Key take-aways Strong long-term growth drivers • “electrification of everything” to counter global warming • “smart medical applications” to better manage aging populations Capex essential to serve the strong 180nm CMOS pipeline Double-digit growth in all focus markets and technologies over the next
Slide 46: Thank you.
Thank you. xfab.com xfab.com 46