X-fab Silicon Foundries Se · EURONEXT:XFAB
X-fab Silicon Foundries — Q1 2023 Earnings Presentation
48 slides from X-fab Silicon Foundries's earnings presentation, Jun 1, 2023
Slide 1: The specialty foundry for the analog world
The SPECIALTY foundry for the analog world Investor presentation // Q1 2023
Slide 2: Disclaimer
Disclaimer Forward-looking information › This presentation may include forward-looking statements. Forward- trends or current activities should not be taken as a report that such looking statements are statements regarding or based upon our trends or activities will continue in the future. We undert
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 technologies › Providing strong design support & IP drives long-term customer across market segments engagement with successful technology leaders › Expertise in analog/mixed-signal IC production, MEMS and SiC › Proven busines
Slide 5: X-FAB at a glance
X-FAB at a glance 100,000 6 approx. 4,200 438 740 million $ Fabs/subsidiaries Sales offices *200mm equivalent 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 manufacturing › X-FAB does not have own products, as it does not want to compete solutions with its customers Semiconductor IC (Target) Process IP Provision/ IC Wafer (Technology) IC Assembly Marketing & Va
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 MEMS technology › Over 20 years track-record in MEMS offering Analog High High 1.0 μm Digital M/S Voltage NVM Opto SOI Temp MEMS › Strong focus on developing differentiated scalable technologies fo
Slide 9: Serving the strongest growing end markets
Serving the strongest growing end markets Automotive Industrial › Electrification › Power management › Improved safety › Factory automation › ADAS › Intelligent drive and motor › Environmental protection control › Connected cars and services › Smart buildings and cities Consumer, Communi- Medical ca
Slide 10: We are setting the benchmark in support
We are setting the benchmark in support Unique Tools for First-Time-Right Accurate Reference Modeling Kits Largest IP Design Application Offering Reviews Experts Highly Reliable Robust Manufacturing Design Flow Long Support 24/7 PDKs Lifetime Expert with Proven Product Hotline ESD Support
Slide 11: Continuously growing, diversified and global customers
Continuously growing, diversified and global customers X-FAB has grown to a diverse base of X-FAB’s close relationships with customers 438 customers worldwide create barriers to entry for competitors › About 2,040 unique products in production plus more than 665 new products Digital foundry model in
Slide 12: Diversified product range
Diversified product range Average revenue per customer per product in 2022 Revenue share per customer Customer 2022 revenue share › Low risk due to highly diversified portfolio of end products › About 2,040 unique products in production Top 1 39.6 % › X-FAB is #1 foundry supplier for 11 out of the T
Slide 13: Clear future revenue visibility
Clear future revenue visibility Illustrative lifecycle for automotive product Chip design 1st iteration Safe launch Volume Technology Volume ramp-up production First Qualification selection prototype 3 6 5 6–8 9 12 ~ 18 > 66 Months › At least 12 months of finalizing chip design for mass-production ›
Slide 14: Sustainability at X-FAB
Sustainability at X-FAB X-FAB’s ESG objectives › X-FAB provides technologies helping to address today’s challenges, such as China Roadshow 2019 the need for greener energy to respond to the climate change as well as smart medical solutions for a growing population and aging societies. › X-FAB report
Slide 15: 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 in and responsibility place to ensure health and safety of our › Suppliers need to follo
Slide 16: 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 17: Content
Content 01 About X-FAB 02 Our growth strategy going forward 03 Company news 04 Financial update 17
Slide 18: Our growth strategy going forward
Our growth strategy going forward › Expand X-FAB’s leading position in analog/mixed-signal › Grow economy of scale and optimize utilization to further › Maintain focus on resilient and growing end markets – improve margins automotive, industrial, and medical › Seize attractive acquisition opportunit
Slide 19: Providing solutions for the challenges of our time
Providing solutions for the challenges of our time Megatrends How X-FAB contributes Climate Change › SiC for improved energy efficiency for the automotive and industrial market Greener economy › Fully supporting the electrification of cars Demographics › Point-of-care diagnostics Growing population
Slide 20: Business highlights – Automotive
Business highlights – Automotive › Electrification of mobility keeps accelerating driving strong demand for X-FAB’s high-voltage system-on-chip technologies › All-time high automotive revenues in Q1 2023, up 35% year-on-year › Top line growth remains limited by available capacity Automotive revenue
Slide 21: Automotive applications supported by X-FAB
Automotive applications supported by X-FAB › Auto semiconductor market expected to In-vehicle network grow at a CAGR of 13% (2021-2030)* Comfort & control CAN/LIN Transceiver › EV models with chips made by X-FAB Window & door control Ethernet inside can count up to 170 CHIPS per unit Intelligent key
Slide 22: 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 23: Business highlights – Industrial
Business highlights – Industrial › Transition to renewable energies drives demand for X-FAB’s industrial SiC applications › Total quantity of SiC wafers delivered in the first quarter was up 56% year-on-year › All-time high industrial revenues in Q1 2023, up 13% year-on-year Industrial revenue 50 45
Slide 24: Growth drivers: green energy & automation
Growth drivers: green energy & automation Sustainable energy Industry 4.0 Smart buildings Smart cities › Meeting today’s energy demand › Factory automation, robotics/ › Centralized management of › Interaction and management of without venturing the livelihood cobots, M2M communication, building tech
Slide 25: 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 26: Business highlights – Medical
Business highlights – Medical › Growth driven by advances in healthcare that increasingly rely on semiconductor solutions › All-time high medical revenues in Q1 2023, up 28% year-on-year › Strong first quarter growth due to increased production volumes of a DNA sequencing device Medical revenue 18 1
Slide 27: 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 28: 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 has expertise and experience in microelectronics and microfluid
Slide 29: Enabling next generation healthcare
Enabling next generation healthcare Digital transformation in medicine › Demand for digital healthcare keeps increasing • Point-of-care diagnostics • Personalized medicine • Telemedicine „We are experiencing the digital transformation in medicine. This will › Health checks everywhere significantly i
Slide 30: Business highlights – Consumer, Communications & Computer
Business highlights – Consumer, Communications & Computer › Peak in 2016 due to acquisition of X-FAB France and subcontracted fingerprint business › Greater focus on differentiating CCC business with higher value add going forward › CCC legacy business at X-FAB France has come down to zero CCC reven
Slide 31: CCC applications supported by X-FAB
CCC applications supported by X-FAB Sensors Power management Radio frequency (RF) › Optical ambient light › Touch controller › Micro LED drivers › AC/DC chargers › RF switch › PLL sensor › Low noise amplifier › MIPI interface › Gas sensor › Micro OLED displays › Galvanic isolation › Proximity sensor
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 News & Events › Jan 2023: X-FAB receives supplier of the year award from Flusso Limited for “Excellence in MEMS engineering and customer support for Flusso flow sensors” › 15 Feb 2023: X-FAB Sarawak receives the "Global HR Excellence Award 2023" at the World HRD Congress in Mumbai, Indi
Slide 35: Content
Content 01 About X-FAB 02 Our growth strategy going forward 03 Company news 04 Financial update 35
Slide 36: Q1 2023 at a glance
Q1 2023 at a glance Revenue, bookings & backlog by quarter Key takeaways Revenue & bookings in $m Backlog in $m 300 CMOS MEMS SiC Bookings Backlog 600 › Q1 revenues at USD 208.1 million within the guided 550 USD 205-220 million 250 500 › Up 16% year-on-year 450 › Record revenues in X-FAB’s key end m
Slide 37: Quarterly overview
Quarterly overview in millions of USD, growth vs. growth vs. Q1 2023 Q1 2022 Q4 2022 except otherwise stated Q1 2022 Q4 2022 Revenue 208.1 178.7 183.6 16% 13% Gross profit 57.2 43.2 40.8 32% 40% % margin 27.5% 24.2% 22.2% EBIT 37.4 22.2 21.0 68% 78% % margin 18.0% 12.4% 11.5% Net profit 42.7 19.4 41
Slide 38: Quarterly revenue by market segment and technology
Quarterly revenue by market segment and technology Q1 y-o-y in millions of USD Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 growth by market segment Automotive 82.8 81.5 83.8 89.7 98.3 96.9 104.4 120.9 35% Industrial 35.2 38.3 39.7 41.4 42.5 46.7 42.3 46.9 13% Medical 10.4 14.3 14
Slide 39: Successful business portfolio transformation
Successful business portfolio transformation Business mix Q4 2016 Business mix Q1 2023 Industrial Medical Automotive 8% 2% 58% Automotive Industrial 37% 23% Share of core business CCC 52% with long lifecycles and higher value-add has grown systematically CCC Medical 11% 8% Core business: 48% Core bu
Slide 40: Prototyping revenue development
Prototyping revenue development Prototyping revenue per quarter Prototyping revenue by market segment (full year 2022) › Q1 2023 prototyping revenues at USD 26.4 million, up 7% year-on-year and 12% quarter-on-quarter 30 IP sale* Others NRE Revenue 3% 25 CCC Automotive Moving 4Q average 21% 19% 20 in
Slide 41: Natural hedging of the business
Natural hedging of the business Revenue by currency Costs by currency (full year 2022) › Euro share of sales in Q1 2023 at 45% › No FX impact on EBITDA thanks to natural hedging of the business 800 MYR SGD 700 5% 1% 58% 600 63% 500 84% 81% EUR in $m 400 34% 87% 75% 68% 300 USD 42% 60% 200 79% 37% 10
Slide 42: Cash position
Cash position Net debt development Solid cash position in millions of USD 31 Mar 2023 31 Mar 2022 31 Dec 2022 › Solid cash position to sustain strong growth – reinvesting cash into capacity expansions across all Cash & cash equivalents 350.3 259.3 369.4 sites › Major capacity expansion program with
Slide 43: Profitability
Profitability › Q1 2023 EBITDA margin at 27.9% above the guided 22-26% › Volume growth and economies of scale contributed positively to profitability › Price increases introduced in 2022 have taken effect Gross profit EBITDA 60 30% 60 30% 50 50 40 20% 40 20% in $m in $m 30 30 20 10% 20 10% 10 10 0 0
Slide 44: Outlook
Outlook Bookings & backlog Guidance › Quarterly bookings down 5% year-on-year and up 18% quarter-on- › Q2 2023 revenues in the range of USD 205-220 million quarter › Q2 2023 EBITDA margin in the range of 23-27% 600 › Based on an average exchange rate of 1.09 USD/EUR 500 400 › FY 2023 revenues in the
Slide 45: Appendix
Appendix 45
Slide 46: Financial key figures 2017-2022
Financial key figures 2017-2022 in millions of USD, CAGR 2017 2018 2019 2020 2021 2022 except otherwise stated 2017-20221 Revenue 581.7 587.9 506.4 477.6 657.8 739.5 5% % growth 13.4% 1.1% -13.9% -5.7% 37.7% 12.4% Gross profit 115.7 104.0 27.3 43.7 150.0 176.0 9% % margin 19.9% 17.7% 5.4% 9.2% 22.8%
Slide 47: Annual revenue by market segment and technology
Annual revenue by market segment and technology CAGR in millions of USD 2017 2018 2019 2020 2021 2022 Growth 2017-2022 by market segment Automotive 256.1 284.0 243.8 236.0 331.7 389.3 17% 9% Industrial 73.6 96.2 91.9 97.1 145.6 172.9 19% 19% Medical 22.7 24.0 28.2 33.5 47.9 55.8 16% 20% Subtotal cor
Slide 48: X-FAB shareholder structure
X-FAB shareholder structure XTRION NV 40.1 Sarawak Technology Holdings Sdn. Bhd. 48.4 Public 11.4 48
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