Filtronic Plc · LSE:FTC
Filtronic — H1 FY2025 Earnings Presentation
26 slides from Filtronic's earnings presentation, Feb 4, 2025
Slide 1: FY2025 Mid-Year Results
FY2025 Mid-Year Results 4 February 2025 Nat Edington, CEO Michael Tyerman, CFO
Slide 2: Filtronic Disclaimer
Filtronic Disclaimer IMPORTANT NOTICE This presentation and any verbal information given (together, the “Presentation”), has been prepared by No representations or warranties of any kind are made by any person as to the accuracy of such the directors of Filtronic plc (the “Company”). The information
Slide 3: 1H FY2025 Summary
1H FY2025 Summary Significant Revenue and EBITDA increase Market Focus Deepening relationship with SpaceX with longer term planning Accelerated Good progress with new Design Wins technology development Significant progress with technology developments, with production wafer released for new
Slide 4: Half Year Summary
Half Year Summary Operational Highlights Revenue • Strong order inflow from SpaceX in the period aligned with the Strategic Partnership £25.6m (202%) • agreement. Technology developments progressing well to deliver on our future product roadmap in conjunction with key customers. Adjusted EBITDA* £8.
Slide 5: RF solutions across the spectrum
RF solutions across the spectrum 5 Confidential & Proprietary - Filtronic plc- © Filtronic plc 2021. Commercial in confidence
Slide 6: Where we excel
Where we excel RF design and manufacturing capabilities across the entire spectrum and up to the highly complex challenging frequency bands at E/W and D-band. Space Communications Telecommunications Infrastructure Aerospace & Defence Critical Communications 6
Slide 7: Growth markets
Growth markets Connecting a converged network RF, Electronic Warfare & AESA Radar Low Earth Orbit (LEO) and High Altitude Pseudo Satellites (HAPS) applications Unmanned & counter unmanned systems Commercial and Military solutions Electronic countermeasures Transceivers, Power Amplifiers, F
Slide 8: Market Dynamics
Market Dynamics Telecommunications Space Telecoms Critical Telecommunications LEO Space Aerospace & Defence Defence Critical Communications Infrastructure (X-haul) HAPS/LEO/ Payload Links) (Radar / EW / ECM) Communications Infrastructure (X-haul) (Gateway (LMR / P25 Networks) Primary • E-band backha
Slide 9: Space - A massive market opportunity
Space - A massive market opportunity • Mega constellations drive volume but lower % of $ • Large projects with the “Space Powers” US, Europe, India and Japan. Confidential & Proprietary - Filtronic plc- © Filtronic plc 2023/24 • Key solutions for the market: • SSPA • Transceivers • Filter • Diplexer
Slide 10: Primary LEO Space Constellations
Primary LEO Space Constellations Target Commercial in confidence Programme Target Segments Constellation HQ Launch Partners Satellite OEM Bands Comments Size Consumer and Enterprise Ka, E, Service live across, US, EU and SE Asia inc Australia and StarLink 42,000 Redmond, USA SpaceX SpaceX Internet /
Slide 11: LEO Space - Ground Station Opportunity
LEO Space - Ground Station Opportunity • Ground stations, or Gateway Links, links the ground to and from the LEO satellite as it passes overhead • Uplinks require high performance amplification at mmWave Confidential & Proprietary - Filtronic plc- © Filtronic plc 2022. frequencies to expand network
Slide 12: LEO Space - Satellite Payload Opportunity
LEO Space - Satellite Payload Opportunity • Solving the cost of launch and deployment has been the key to unlocking the economic potential of LEO satellite constellations Confidential & Proprietary - Filtronic plc- © Filtronic plc 2022. • The speed of network deployment depends on launch capacity. •
Slide 13: Aerospace & Defence Market
Aerospace & Defence Market Filtronic investment case • Sovereign capability - Filtronic secure UK facilities with full defence accreditation • RF skills shortage in the UK – defence primes need support on key programmes to deliver • Current conflicts highlight the importance of Electronic Warfare (E
Slide 14: New leadership appointments
New leadership appointments Commercial in confidence Antonino Spatola Dave Marshall Sarah Shaw General Counsel Confidential & Proprietary - Filtronic plc- © Filtronic plc 2024/25 Chief Commercial Officer Director of Programmes Over 20 years of expertise in Sarah oversees the company’s legal Dave now
Slide 15: Design Win and Sales Pipeline progress
Design Win and Sales Pipeline progress • 12 new Design Wins with 9 customers in 1H 2025 with lifetime revenue >£30M Communications 8% Confidential & Proprietary - Filtronic plc- © Filtronic plc 2022. • Target growth markets of Space & Defence dominate sales pipeline • Strategic Defence Review has im
Slide 16: SpaceX
SpaceX • Partnership progressing well • First 5% share warrants from Strategic Partnership fully vested due to high levels of orders for E-Band GaAs SSPAs • Greater long term visibility and planning • Next generation technology developments are on time for roll out • Increasing demand, which had led
Slide 17: Core Technology Developments
Core Technology Developments Next RF band Chip Development • Initial devices produced and measured • Improved designs & tape-out complete Confidential & Proprietary - Filtronic plc- © Filtronic plc 2022. • Production ready H1 FY2026 High power GaN Chip Developments • Three RF band developments in pa
Slide 18: HQ Expansion – Entry Summer 2025
HQ Expansion – Entry Summer 2025 • Move of headquarters to new state of the art facility on the same site • 44,000 sqft manufacturing and office space (current is 17,000 sqft) • 6x larger cleanroom than current facility – ISO7, 8 and 9 zones • >150 office staff area 18
Slide 19: Financial Summary
Qfiltronic Innovation in RF technology Financial Summary filtronic.com
Slide 20: Revenue: Increase of 202% vs FY2024
Revenue: Increase of 202% vs FY2024 Revenue from long-term development contracts at ESA, BAE and QinetiQ still to be realised Key strategic objective: Continue to develop customer base outside of major customers Group revenue £25.6m (2024: £8.5m) • Space market delivering transformational growth for
Slide 21: Execution of Strategy and Investing for Growth
Execution of Strategy and Investing for Growth Tangible results starting to show from the output of strategy execution • Sales mix is similar to the prior year with contribution margin flat • Increased level of trading, benefit of improved overhead recovery, driving margin improvement. • Investment
Slide 22: Balance sheet
Balance sheet Nov-24 May-24 Nov-23 Capital expenditure and Right of use assets £m £m £m • Two new production lines added enabling us to flex capacity as Goodwill and intangible assets 2.6 2.3 2.0 well as the addition of increased engineering capability. Right of use assets 3.8 3.7 3.6 Property, plan
Slide 23: Cash
Cash Nov-24 May-24 Nov-23 £m £m £m Net cash generated from operating activities 2.1 1.9 1.8 Net cash used in investing activities (2.0) (0.5) (0.5) Net cash used in financing activities (0.1) 0.1 0.1 Movement in cash and cash equivalents 0.0 1.5 1.5 Currency exchange movement 0.0 0.0 0.0 Opening cas
Slide 24: Key Financial Themes
Key Financial Themes Future investment • Aerospace and defence Engineering resource Target to maintain investment at 13% of revenue • Space Sales and marketing Strengthening of the direct sales channel with a focus on space • Critical and defence to capitalise on the strong macro tailwinds comms Ope
Slide 25: Investment Proposal
Investment Proposal • On a significant growth trajectory • Focused strategy designed for major revenue growth and shareholder value • Significant and growing orderbook and opportunity pipeline for FY2025 and beyond • Controlled investment in leadership, business development, engineering • Global tec
Slide 26: Thank You!
Qfiltronic Innovation in RF technology Thank You! filtronic.com