X FAB Silicon Foundries : Press Release - English (Press Release X FAB Q1 2025 Results 24Apr2025 ENG)

About this update from X-fab Silicon Foundries Se

X-FAB Silicon Foundries SE | Press Release April 24, 2025 Regulated Information X-FAB First Quarter 2025 Results Intermediate declaration by the Board of Directors Tessenderlo-Ham, Belgium - April 24, 2025, 07.00 a.m. CEST Highlights Q1 2025: Revenue was USD 204.1 million, down 6% year-on-year (YoY) and up 8% quarter-on-quarter (QoQ) Excluding the impact from revenue recognized over time (IFRS 15), revenue was USD 202.3 million, well within the guided range of USD 195-205 million Bookings at USD 174.7 million reflecting a strong sequential increase of 26% QoQ EBITDA at USD 49.1 million, down 4% YoY and up 23% QoQ EBITDA margin of 24.0%; excluding IFRS 15 impact, EBITDA margin was 23.8%, compared to the guidance of 22-25% EBIT was USD 21.1 million, down 22% YoY and up 100% QoQ Outlook: Q2 2025 revenue is expected to come in within a range of USD 200-210 million with an EBITDA margin in the range of 22.5-25.5%. The guidance is based on an average exchange rate of 1,08 USD/Euro and does not take into account the impact of IFRS 15. X-FAB reiterates its FY 2025 guidance with annual revenue expected in the range of USD 820-870 million and an EBITDA margin in the range of 24-27%. Revenue breakdown per quarter: in millions of USD Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 y-o-y growth Automotive 131.1 135.3 151.8 135.6 142.4 146.0 128.6 135.4 0% Industrial 51.3 53.7 54.3 52.6 34.4 31.5 36.1 39.3 -25% Medical 16.2 17.0 16.4 14.5 13.2 12.1 16.5 13.8 -4% Subtotal core 198.7 206.1 222.5 202.6 190.1 189.6 181.2 188.6 -7% business 90.8% 92.2% 92.8% 92.6% 93.7% 92.9% 92.1% 93.2% CCC 1 20.0 17.2 17.2 16.0 12.6 14.2 15.1 13.6 -15% Others 0.2 0.2 0.1 0.1 0.1 0.1 0.5 0.2 Revenue* 218.9 223.5 239.8 218.7 202.8 204.0 196.8 202.3 -7% Impact from revenue 8.3 10.4 -2.0 -2.6 2.3 2.4 -8.0 1.8 recognized over time Total revenue 227.1 233.8 237.7 216.2 205.1 206.4 188.8 204.1 -6% 1 Consumer, Communications & Computer *excluding impact from revenue recognized over time according to IFRS 15 X-FAB Silicon Foundries SE | Press Release April 24, 2025 in millions of USD CMOS Microsystems Silicon carbide Revenue* Impact from revenue recognized over time Total revenue Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 180.7 180.5 188.4 168.3 166.2 175.0 170.8 20.8 24.4 27.9 24.1 25.1 21.6 20.2 17.3 18.6 23.5 26.3 11.6 7.4 5.8 218.9 223.5 239.8 218.7 202.8 204.0 196.8 8.3 10.4 -2.0 -2.6 2.3 2.4 -8.0 227.1 233.8 237.7 216.2 205.1 206.4 188.8 Q1 2025 173.4 22.9 6.0 202.3 1.8 204.1 Q1 y-o-y growth 3% -5% -77% -7% -6% Business development In the first quarter of 2025, X-FAB recorded revenues of USD 204.1 million, down 6% year-on-year and up 8% quarter-on-quarter. Excluding the impact from revenue recognized over time in the amount of USD 1.8 million, quarterly revenue was USD 202.3 million, which is well within the guidance of USD 195-205 million. First quarter revenue in X-FAB's core markets - automotive, industrial, and medical - was at USD 188.6 million*, down 7% year-on-year and up 4% quarter-on-quarter, representing a share of 93%* of total revenue. The quarterly bookings totaled USD 174.7 million, reflecting a 36% decrease compared to the exceptionally strong corresponding quarter of the previous year, but a 26% increase quarter-on-quarter. This growth is primarily related to strong bookings in the automotive and industrial end market. In general, customers are still placing orders later than usual in reaction to the currently shortened lead times. The backlog for the first quarter amounted to USD 386.7 million, compared to USD 414.0 million at the end of the previous quarter. In the first quarter, X-FAB recorded automotive revenue of USD 135.4 million*, flat year-on-year and up 5% sequentially. Main drivers for X-FAB's automotive business in the first quarter were EV-related applications. Industrial revenue in the first quarter came in at USD 39.3 million*, down 25% year-on-year and up 9% quarter-on-quarter. The industrial business in particular is benefiting from increased demand following the last-time-buy announcement for some of X-FAB's 150mm CMOS technologies. Revenue in the medical end market amounted to USD 13.8 million*, down 4% year-on-year, while the quarter-on-quarter decline of 16% is attributable to high shipments of a medical application in the prior quarter. X-FAB recorded a sequential revenue increase across all technologies. CMOS revenue went up 2%* quarter- on-quarter, silicon carbide 5%* and X-FAB's microsystems business 14%*. X-FAB's silicon carbide revenue in the first quarter came in at USD 6.0 million*. SiC order intake increased 17% sequentially and for the second consecutive quarter, signaling the market's gradual recovery. The main growth driver was data center applications. *excluding impact from revenue recognized over time according to IFRS 15 X-FAB Silicon Foundries SE | Press Release April 24, 2025 Quarterly prototyping revenue was USD 16.1 million*, down 31% year-on-year and 32% quarter-on-quarter. As the transition of major customer-specific projects to volume production was successfully completed in 2024, the associated safe launch and start-up costs as part of prototyping revenue disappeared, which had an effect on the prototyping revenue in the first quarter. In general, X FAB's prototyping revenue tends to be more variable as the number of customer-specific projects increases. In these projects, development and prototyping services are billed in tranches based on milestones achieved rather than on a linear basis. Prototyping and production revenue* per quarter and end market: in millions Revenue Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 of USD Automotive Prototyping 6.7 7.6 9.3 8.9 4.7 Production 128.9 134.8 136.7 119.7 130.8 Industrial Prototyping 10.7 8.9 8.2 9.6 8.8 Production 41.9 25.5 23.3 26.5 30.5 Medical Prototyping 2.7 2.0 3.0 2.3 1.5 Production 11.8 11.2 9.1 14.2 12.3 CCC Prototyping 3.1 2.5 3.0 2.6 1.1 Production 12.9 10.2 11.3 12.6 12.5 The megatrends "electrification of everything" and "sensing everywhere" will drive sustainable demand for the comprehensive set of specialty technologies that X-FAB offers, enabling viable solutions that contribute to the mitigation of climate change and more efficient digital healthcare in aging societies. With the phase- out of inventory corrections and the expected gradual recovery of demand in the course of 2025, X-FAB reiterates its full-year guidance with a revenue range of USD 820-870 million and an EBITDA margin in the range of 24-27%. Geopolitical tensions and related customs regulations do not currently impact X-FAB's business directly, as X-FAB sells its goods ex-works. The indirect effects of these tensions can be either positive or negative and cannot be estimated. This guidance accounts for all identified effects as of the date of this press release. *excluding impact from revenue recognized over time according to IFRS 15 X-FAB Silicon Foundries SE | Press Release April 24, 2025 Operations update X-FAB progressed well in expanding its 180nm CMOS capacity, which is crucial for supporting its future CMOS and microsystems business. During the first quarter, all outstanding tools for the newly constructed clean room in Malaysia were delivered, installed, and are now being qualified. This marks the approaching completion of X-FAB's major capacity expansion program. The associated capital expenditures are anticipated to be finalized within the first half of 2025. In the first quarter, capital expenditures totaled USD 101.7 million, representing a decrease of 23% compared to the previous quarter. Financial update First quarter EBITDA was USD 49.1 million with an EBITDA margin of 24.0%. Excluding the impact from revenues recognized over time, the EBITDA margin for the first quarter would have been 23.8%, within the guided range of 22-25%. For the net financial result in the first quarter X-FAB recorded a loss of USD 7.2 million, which includes unrealized foreign exchange effects totaling USD -3.4 million. Profitability remains unaffected by exchange rate fluctuations as X-FAB's business is naturally hedged. At a constant USD/Euro exchange rate of 1.09 as experienced in the previous year's quarter, the EBITDA margin would have been 0.1 percentage points higher. Cash and cash equivalents at the end of the first quarter amounted to USD 157.2 million, down 27% against the previous quarter in accordance with the planned allocation of funds to capital expenditures. Management comments Rudi De Winter, CEO of X-FAB Group, said: "I am pleased to present the quarterly results reflecting X-FAB's resilient business with an 8% sequential increase in revenue and a robust EBITDA margin of 24%. Although geopolitical tensions pose challenges for the semiconductor industry, they also offer new opportunities for X-FAB due to our global presence across all major continents. I am confident in our capacity to navigate these challenges, as our specialty technologies address societal megatrends and will continue to be in demand." *excluding impact from revenue recognized over time according to IFRS 15 X-FAB Silicon Foundries SE | Press Release April 24, 2025 X-FAB Quarterly Conference Call X-FAB's first quarter results will be discussed in a live conference call/audiocast on Thursday, April 24, 2025, at 6.30 p.m. CEST. The conference call will be in English. Please register here for the audiocast (listen only). Please register here for the conference call (listen and ask questions). The second quarter 2025 results will be communicated on July 31, 2025. About X-FAB X-FAB is a global foundry group providing a comprehensive set of specialty technologies and design IP to enable its customers to develop world-leading semiconductor products that are manufactured at X-FAB's six wafer fabs located in Malaysia, Germany, France, and the United States. With its expertise in analog/mixed- signal technologies, microsystems/MEMS and silicon carbide (SiC), X-FAB is the development and manufacturing partner for its customers, primarily serving the automotive, industrial and medical end markets. X-FAB has approximately 4,500 employees and has been listed on Euronext Paris since April 2017 (XFAB). For more information, please visit www.xfab.com. X-FAB Press Contact Uta Steinbrecher Investor Relations X-FAB Silicon Foundries +49-361-427-6489 [email protected] Forward-looking information This press release may include forward-looking statements. Forward-looking statements are statements regarding or based upon our management's current intentions, beliefs or expectations relating to, among other things, X-FAB's future results of operations, financial condition, liquidity, prospects, growth, strategies, or developments in the industry in which we operate. By their nature, forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results or future events to differ materially from those expressed or implied thereby. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this press release regarding trends or current activities should not be taken as a report that such trends or activities will continue in the future. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless legally required. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this press release. The information contained in this press release is subject to change without notice. No re-report or warranty, express or implied, is made as to the fairness, accuracy, reasonableness, or completeness of the information contained herein and no reliance should be placed on it. X-FAB Silicon Foundries SE | Press Release April 24, 2025 Condensed consolidated statement of profit and loss in thousands of USD Quarter Quarter Quarter Year ended ended ended ended 31 Mar 2025 31 Mar 2024 31 Dec 2024 31 Dec 2024 unaudited unaudited unaudited audited Revenue* 202,332 218,712 196,761 822,301 Impact from revenue recognized over time 1,781 -2,559 -7,998 -5,919 Total revenue 204,113 216,152 188,762 816,383 Revenues in USD in % 58 62 61 59 Revenues in EUR in % 42 38 39 41 Cost of sales -159,476 -165,786 -152,250 -633,434 Gross profit 44,636 50,367 36,513 182,949 Gross profit margin in % 21.9 23.3 19.3 22.4 Research and development expenses -10,992 -11,106 -14,205 -49,785 Selling expenses -2,248 -2,537 -2,213 -9,070 General and administrative expenses -11,397 -12,811 -11,511 -47,351 Rental income and expenses from investment 776 1,434 409 2,770 properties Other income and other expenses 337 1,847 1,575 6,030 Operating profit 21,112 27,193 10,567 85,543 Finance income 6,494 5,778 11,262 36,006 Finance costs -13,684 -7,653 -12,243 -38,260 Net financial result -7,190 -1,875 -981 -2,254 Profit before tax 13,922 25,318 9,585 83,289 Income tax -1,720 -2,260 -16,891 -21,763 Profit for the period 12,202 23,059 -7,306 61,526 Operating profit (EBIT) 21,112 27,193 10,567 85,542 Depreciation 27,949 23,765 29,248 103,386 EBITDA 49,061 50,958 39,815 188,928 EBITDA margin in % 24.0 23.6 21.1 23.1 Earnings per share 0.09 0.18 -0.06 0.47 Weighted average number of shares 130,631,921 130,631,921 130,631,921 130,631,921 EUR/USD average exchange rate 1.05149 1.08605 1.06821 1.08232 Amounts in the financial tables provided in this press release are rounded to the nearest thousand except when otherwise indicated, rounding differences may occur. *excluding impact from revenue recognized over time in accordance with IFRS 15 X-FAB Silicon Foundries SE | Press Release April 24, 2025 Condensed consolidated statement of financial position in thousands of USD Quarter ended Quarter ended Year ended 31 Mar 2025 31 Mar 2024 31 Dec 2024 unaudited unaudited audited ASSETS Non-current assets Property, plant, and equipment 1,196,149 800,843 1,144,620 Investment properties 7,339 7,108 7,412 Intangible assets 6,059 5,985 6,319 Other non-current assets 38 54 42 Deferred tax assets 66,855 83,692 66,725 Total non-current assets 1,276,440 897,682 1,225,118 Current assets Inventories 281,311 276,983 281,765 Contract assets 19,873 21,451 18,092 Trade and other receivables 95,310 119,271 96,648 Other assets 62,696 48,786 69,253 Cash and cash equivalents 157,240 351,468 215,837 Total current assets 616,430 817,959 681,595 TOTAL ASSETS 1,892,870 1,715,640 1,906,713 EQUITY AND LIABILITIES Equity Share capital 432,745 432,745 432,745 Share premium 348,709 348,709 348,709 Retained earnings 253,858 203,218 241,648 Cumulative translation adjustment 369 -1,052 462 Treasury shares -770 -770 -770 Total equity 1,034,911 982,850 1,022,794 Non-current liabilities Non-current loans and borrowings 375,835 58,778 369,616 Other non-current liabilities and provisions 3,905 4,696 4,257 Total non-current liabilities 379,740 63,474 373,873 Current liabilities Trade payables 41,068 102,660 67,658 Current loans and borrowings 50,492 185,400 44,517 Other current liabilities and provisions 386,660 381,258 397,872 Total current liabilities 478,219 669,317 510,046 TOTAL EQUITY AND LIABILITIES 1,892,870 1,715,640 1,906,713 X-FAB Silicon Foundries SE | Press Release April 24, 2025 Condensed consolidated statement of cash flows in thousands of USD Quarter Quarter Quarter Year ended ended ended ended 31 Mar 2025 31 Mar 2024 31 Dec 2024 31 Dec 2024 unaudited unaudited unaudited audited Income before taxes 13,922 25,318 9,585 83,289 Reconciliation of income before taxes to cash 30,949 23,732 31,455 106,148 flow arising from operating activities: Depreciation and amortization, before effect of 27,949 23,765 29,248 103,386 grants and subsidies Amortization of investment grants and subsidies -1,231 -673 -1,514 -3,735 Interest income and expenses (net) 3,756 -306 2,564 5,525 Loss/(gain) on the sale of plant, property, and -53 -1,751 53 -4,030 equipment (net) Loss/(gain) on the change in fair value of 0 0 0 1,144 derivatives and financial assets (net) Other non-cash transactions (net) 529 2,698 1,104 3,858 Changes in working capital: -6,783 -799 -27,694 8,726 Decrease/(increase) of trade receivables 1,296 8,252 -5,347 30,808 Decrease/(increase) of other receivables and other 6,562 6,587 -14,504 5,687 assets Decrease/(increase) of inventories 454 -4,951 2,380 -9,733 Decrease/(increase) of contract assets -1,781 2,559 7,998 5,919 (Decrease)/increase of trade payables -4,151 -206 525 -17,373 (Decrease)/increase of other liabilities -9,163 -13,040 -18,746 -6,582 Income taxes (paid)/received -896 -1,441 -359 -2,113 Net cash from operating activities 37,192 46,810 12,987 196,050 Cash flow from investing activities: Payments for property, plant, equipment and -101,731 -104,980 -132,903 -509,551 intangible assets Acquisition of subsidiary, net of cash acquired 0 23,229 0 -1,633 Proceeds from sale of property, plant, and 53 1,791 -99 4,024 equipment Interest received 1,164 3,433 1,972 11,032 Net cash used in investing activities -100,514 -76,527 -131,030 -496,128 X-FAB Silicon Foundries SE | Press Release April 24, 2025 Condensed consolidated statement of cash flows - con't in thousands of USD Quarter Quarter Quarter Year ended ended ended ended 31 Mar 2025 31 Mar 2024 31 Dec 2024 31 Dec 2024 unaudited unaudited unaudited audited Cash flow from (used in) financing activities: Proceeds from loans and borrowings 28,902 50,300 38,134 209,669 Repayment of loans and borrowings -21,081 -94,113 -3,898 -124,237 Receipts of sale and leaseback arrangements 3,095 31,616 1,350 60,584 Payments of lease installments -4,146 -1,169 -3,193 -12,502 Interest paid -4,817 -4,058 -3,749 -17,214 Cash flow from (used in) financing activities 1,953 -17,423 28,644 116,300 Effect of changes in foreign currency exchange 2,771 -7,093 -10,681 -6,086 rates on cash balances Increase/(decrease) of cash and cash equivalents -61,368 -47,140 -89,399 -183,778 Cash and cash equivalents at the beginning of the 215,837 405,701 315,917 405,701 period Cash and cash equivalents at the end of 157,240 351,468 215,837 215,837 the period ###

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