X-fab Silicon Foundries Se · EURONEXT:XFAB
X-fab Silicon Foundries — X-Fab — Investor Day (2023)
15 slides from X-fab Silicon Foundries's investor day presentation, Jun 8, 2023
Slide 1: X-FAB's financial model & outlook
X-FAB’s financial model & outlook Alba Morganti | CFO
Slide 2: Strong revenue growth
Strong revenue growth in m$ Revenue 250 › All time high revenue in Q1 2023 200 › Strong growth of core business – CAGR: 12% automotive, industrial and medical – with an increased 150 share of total revenue 100 CAGR: 18% 50 0 Q1 2019 Q1 2023 Revenue core business CCC CCC = Consumer, Communications &
Slide 3: High value-added business mix
High value-added business mix Pre-IPO Last CMD Today Q4 2016 Q1 2021 Q1 2023 Industrial 8% Medical Automotive Automotive 2% Industrial 54% 58% 21% Automotive Industrial 37% 23% CCC 52% Medical CCC 6% CCC Medical 20% 11% 8% Core business: 48% Core business: 80% Core business: 89% Because of rounding
Slide 4: Natural hedging of FX
Natural hedging of FX Revenue by currency Costs by currency (full year 2022) › Euro share of sales in Q1 2023 was at 45% – coming from a low of 11% in Q4 2016 800 JPY SGD 700 MYR 1% 1% 8% 600 58% 500 63% in $m 400 84% 81% 300 75% 68% EUR USD 87% 36% 54% 200 79% 42% 100 37% 25% 32% 16% 19% 21% 13% 0
Slide 5: Profitability improved
Profitability improved in m$ Gross profit in % › Strong top line growth 30 55 Gross profit Gross profit margin 25 › Increased share of higher 45 value-added business 20 › Economies of scale 35 15 › Price increases offsetting cost 25 increases 10 › Productivity improvements 15 5 driven by optimizatio
Slide 6: Profitability set to increase
Profitability set to increase Key drivers for profitability improvement going forward Top line growth › strong growth of core business › no longer affected by decreasing legacy business Increasing share of high value-added › core business expected to further increase to >90% of total revenue busines
Slide 7: Increasing share of high value-added business
Increasing share of high value-added business Evolution of average revenue per wafer 175% +68% 150% › Change of technology mix 125% › Price increases to offset inflation and 100% depreciation 75% 50% 25% 0% 2018 2019 2020 2021 2022 1Q23 7
Slide 8: Strong operational leverage
Strong operational leverage Facility costs fixed Material expenses variable Depreciation and amortization fixed ~60% fixed Cost of fixed Employee-related assets expenses fixed & variable fixed & variable FY 2022 8
Slide 9: Costs under control
Costs under control Historical Actual 2018-2020 Q1 2023 11% 13% 23% Material expenses 24% Employee-related expenses 17% Depreciation & amortization 17% Cost of fixed assets Facility costs 13% 37% 12% 33% Material Through Cost of fixed assets TREND: Depreciation & amortization economies Facility cost
Slide 10: Investing to support strong growth
Investing to support strong growth Capex evolution Capex program 2023-2025 350 › Capacity expansion projects estimated at 300 USD 1 billion Total capex Tool capex 250 › Maintenance capex estimated at USD 200 million 200 in m$ 150 Historical 2023-25 2026 onwards 100 Capex ratio 15% 30-35% 15-20% 50 M
Slide 11: Where will it take us?
Where will it take us? Revenue EBITDA CAGR Margin USD 1.5bn USD 500m 2019-2026 2026 17% 30-35% USD 506m USD 28m 2019 2026 2019 2026 11
Slide 12: Financing the capex
Financing the capex Financing structure 2023-2025 New credit lines Contribution from USD 300-500m operating cash flow Capex USD 400-600m USD 1.2bn 2023-2025 LTA prepayments Contribution USD ~350m from cash position USD 50-100m 12
Slide 13: Outlook
Outlook FC 2023 FC 2026 in USD million In USD million 500 350 230* 280 Capex EBITDA Capex EBITDA *Mid-point of FY 2023 guidance 13
Slide 14: Outlook
Outlook Guidance Outlook FY 2023 FY 2026 Revenue USD 880-960 million USD 1.5 billion EBITDA margin 23-27% 30-35% CAPEX USD 350m +/- 10% 15-20% of annual revenue Free cash flow ~10% of annual revenue* ~15% of annual revenue *including LTA prepayments 14
Slide 15: Thank you.
Thank you. @) ®) @ @ @ xfab.com