XFAB X-FAB Silicon Foundries SE

Intermediate declaration by the Board of Directors

Regulatory News:

X-FAB Silicon Foundries SE (BOURSE:XFAB)

Highlights Q4 2023:

• Revenue was USD 237.7 million, up 29% year-on-year (YoY) and 2% quarter-on-quarter (QoQ); including USD -2.0 million due to changes in revenues recognized over time according to IFRS 15
• Continued strong growth in X-FAB’s key end markets – automotive, industrial, and medical – up 38% YoY*
• All-time high revenues* across all technologies: CMOS revenue up 24% YoY, Microsystems revenue up 43% YoY and SiC revenue up 93% YoY
• Strong bookings at USD 224.6 million, up 17% YoY
• EBITDA at USD 59.6 million, up 41% YoY
• EBITDA margin of 25.1%, within the guided 25-29%
• EBIT was USD 35.6 million, up 69% YoY

Highlights 2023:

• Revenue was USD 906.8 million, up 23% YoY; including USD 16.6 million of revenues recognized over time according to IFRS 15
• Core business – automotive, industrial, and medical – up 31% YoY* reaching a share of 91% of total revenues and a CAGR of 22% over the past five years
• EBITDA at USD 245.6 million, up 82% YoY
• EBITDA margin of 27.1%, slightly above the guided 23-27%
• EBIT was USD 157.7 million, up 175% YoY

Outlook:

• Q1 2024 revenue is expected to come in within a range of USD 215-225 million with an EBITDA margin in the range of 24-27%.
• Full-year 2024 revenue is expected to come in at a range of USD 900-970 million with an EBITDA margin in the range of 25-29%.
• This guidance is based on an average exchange rate of 1.10 USD/Euro.

Revenue breakdown* per quarter:

in millions of USD

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q4 y-o-y growth

Automotive

89.7

98.3

96.9

104.4

120.9

131.1

135.3

151.8

45%

Industrial

41.4

42.5

46.7

42.3

46.9

51.3

53.7

54.3

28%

Medical

13.7

13.9

13.5

14.6

17.6

16.2

17.0

16.4

13%

Subtotal core business

144.9

154.7

157.0

161.3

185.4

198.7

206.1

222.5

38%

81.1%

81.9%

83.4%

87.9%

89.1%

90.8%

92.2%

92.8%

 

CCC1

32.5

33.6

30.7

21.6

22.5

20.0

17.2

17.2

-21%

Others

1.2

0.6

0.6

0.7

0.2

0.2

0.2

0.1

 

Revenue*

178.7

188.8

188.3

183.6

208.1

218.9

223.5

239.8

31%

Revenue recognized over time

0

0

0

0

0

8.3

10.4

-2.0

 

Total revenue

178.7

188.8

188.3

183.6

208.1

227.1

233.8

237.7

29%

1Consumer, Communications & Computer

in millions of USD

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q4 y-o-y growth

CMOS

148.6

156.3

152.6

151.9

172.8

180.7

180.5

188.4

24%

Microsystems

17.9

19.8

18.4

19.5

22.2

20.8

24.4

27.9

43%

Silicon carbide

12.1

12.8

17.4

12.2

13.2

17.3

18.6

23.5

93%

Revenue*

178.7

188.8

188.3

183.6

208.1

218.9

223.5

239.8

31%

Revenue recognized over time

0

0

0

0

0

8.3

10.4

-2.0

 

Total revenue

178.7

188.8

188.3

183.6

208.1

227.1

233.8

237.7

29%

Business development

In the fourth quarter of 2023, X‑FAB recorded revenues of USD 237.7 million, up 29% year-on-year and up 2% quarter-on-quarter, which is in line with the guidance of USD 230-245 million. Excluding the negative impact of revenue recognition over time amounting to USD -2.0 million, fourth quarter revenue came in at USD 239.8 million.

Revenues in X-FAB’s core markets – automotive, industrial, and medical – amounted to USD 222.5 million*, up 38% year-on-year, representing a share of 93% of revenues.

In the full year of 2023, X-FAB achieved revenues of USD 906.8 million, up 23% year-on-year including USD 16.6 million in revenues recognized over time according to IFRS 15. Annual turnover in X‑FAB’s key end markets totaled USD 812.6 million*, up 31% year-on-year. This accounts to 91% of total revenue, compared to 84% in the previous year, reflecting the successful transformation of X-FAB’s activities towards high-growth and high value-added business in the automotive, industrial, and medical end markets.

X-FAB’s semiconductor technologies enable sustainable and energy-efficient solutions to address today's megatrends, such as the Electrification of Everything to mitigate climate change, or the digitization of healthcare in the context of growing and aging societies. This is also reflected in the strong demand for the broad range of specialty technologies which X-FAB offers, including high-voltage CMOS, MEMS/microsystems and silicon carbide. Bookings in the fourth quarter came in at USD 224.6 million, up 17% year-on-year, full-year order intake was USD 880.5 million, up 9% compared to 2022. At year-end 2023, the backlog amounted to USD 475.8 million.

X-FAB's automotive business continued its strong growth with record fourth quarter revenues of USD 151.8 million*, up 45% year-on-year. Full-year automotive revenues were USD 539.1 million*, up 38% year-on-year. This increase mainly relates to the ramp up of the automotive business at X-FAB France. The French site continued the conversion of capacity into X-FAB’s popular 180nm automotive technology, thus replacing capacity that had been used to produce CCC legacy business. In the fourth quarter, 93% of X‑FAB France's revenues* were based on X-FAB technologies, against 84% in the same quarter last year.

Industrial revenue in the fourth quarter came in at USD 54.3 million*, up 28% year-on-year. In the full year of 2023, X-FAB recorded industrial revenue of USD 206.2 million*, up 19% year-on-year. Contribution from silicon carbide (SiC) was a key growth driver for X-FAB’s industrial business in 2023 with applications such as power inverters for wind and solar systems or industrial inverters for uninterrupted power supply systems.

Fourth quarter SiC revenue amounted to USD 23.5 million*, up 93% year-on-year. For the full year of 2023, X‑FAB’s SiC business increased 33% to USD 72.6 million*. The total number of SiC wafers produced in 2023 shows a significantly higher increase of 58% year-on-year. SiC revenue growth was partially diluted by the fact that a large portion of customers procure the raw wafers themselves and consign them to X-FAB. This applied to approx. 51% of SiC customers in the fourth quarter and resulted in a lower total billing as there was less pass-through for substrates procured by X-FAB.

In the fourth quarter, X-FAB recorded medical revenue of USD 16.4 million*, up 13% year-on-year. For the full year of 2023, it came in at USD 67.3 million*, up 21% year-on-year. Semiconductor technology is key for digital transformation and efficiency improvements in the healthcare sector. X-FAB’s medical business benefited from the increasing use of wearable medical devices as well as the growing demand for testing and point-of-care devices. Among the growth drivers in 2023 were an infrared temperature sensor as well as a DNA sequencing application.

X-FAB’s capabilities to combine CMOS and MEMS technology as well as its systems integration expertise to add value on wafer level enables innovative medical solutions and will be a major growth driver for X‑FAB’s medical business going forward. Revenue of X-FAB’s microsystems/MEMS business in the fourth quarter amounted to USD 27.9 million*, up 43% year-on-year, while for the whole 2023 it came in at USD 95.2 million*, up 26% from the previous year. In addition to various medical applications, an application for next generation automotive headlamps also contributed positively to X-FAB’s microsystems business in 2023.

X-FAB’s CCC (Consumer, Communication & Computer) business has reached a sustainable level recording revenue of USD 17.2 million* in the fourth quarter, down 21% year-on-year and flat sequentially.

Prototyping revenues in the fourth quarter came in at USD 27.3 million*, up 16% year-on-year. In 2023, they amounted to USD 108.8 million*, up 19% year-on-year. Prototyping revenues represent new business adding up to the pipeline of new projects and supporting X-FAB’s future growth.

The lower revenue guidance for the first quarter of 2024 reflects the faster-than-expected decline in demand for older 150mm CMOS technologies due to inventory adjustments, primarily in the industrial end market. In the medium term, this will be overcompensated by the transition to the growing microsystems and SiC business.

Prototyping and production revenue* per quarter and end market:

in millions

of USD

Revenue

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Automotive

Prototyping

4.7

3.5

3.9

6.2

10.0

Production

99.8

117.3

127.2

129.1

141.8

Industrial

Prototyping

11.2

14.2

16.6

14.3

10.5

Production

31.1

32.7

34.8

39.4

43.8

Medical

Prototyping

2.8

2.9

2.5

3.3

3.3

Production

11.8

14.7

13.7

13.7

13.1

CCC

Prototyping

4.6

5.7

4.5

3.3

3.5

Production

17.1

16.8

15.4

13.9

13.7

Operations update

Fourth quarter utilization rate varied by technology and site. X-FAB's 200mm CMOS, silicon carbide and MEMS/microsystems capacity continued to be fully loaded, while the aforementioned decline in demand for older 150mm CMOS technologies resulted in lower capacity utilization at the Lubbock, Texas and Erfurt, Germany fabs.

X-FAB’s ongoing capacity expansion program progressed well and is on schedule. In 2023, X-FAB Texas produced 58% more SiC wafers than in the previous year. At X-FAB Sarawak, building construction to increase the site’s capacity by 10,000 wafer starts per month is expected to be completed after the summer months, and it is planned to start moving in equipment in the fourth quarter of this year.

In 2023, X-FAB’s total capital expenditures amounted to USD 337.8 million, in line with expectations. In the fourth quarter, capital expenditures came in at USD 100.4 million. Based on the ongoing capacity expansion program and anticipated equipment deliveries in the course of this year, X-FAB expects capital expenditures in 2024 to come in at approx. USD 550 million. Major expenditures in 2024 will include the capacity expansion project at X-FAB Sarawak, Malaysia, the continued capacity conversion at X-FAB France as well as the further expansion of X-FAB’s SiC manufacturing line in Lubbock, Texas.

Financial update

Fourth quarter EBITDA was USD 59.6 million with an EBITDA margin of 25.1%, in line with the guidance of 25‑29%. Excluding the effect of revenues recognized over time in accordance with IFRS 15, the EBITDA margin of the fourth quarter would have been 25.4%, representing a decline of 1.4 percentage points quarter-on-quarter, which is attributable to various factors. These include higher cost of fixed assets, increased general & administrative expenses related to business process optimization activities as well as the planned introduction of a new ERP system and higher staff costs.

Full year EBITDA came in at the upper end of the guided 23-27% and amounted to USD 245.6 million with an EBITDA margin of 27.1%. This compares to an EBITDA margin of 18.2% in 2022. Excluding revenue recognized over time, the EBITDA margin in 2023 would have been 26.7%.

X-FAB's business is naturally hedged in terms of currency exposure. As a result, profitability is not affected by exchange rate fluctuations. At a constant USD/Euro exchange rate of 1.02 as experienced in the previous year’s quarter, the EBITDA margin would have been 0.1 percentage points lower.

Cash and cash equivalents at the end of the fourth quarter amounted to USD 405.7 million, up 4% compared to the end of the previous quarter.

Management comments

Rudi De Winter, CEO of X-FAB Group, said: "We finished the year very successfully with above-market growth rates in our core automotive, industrial and medical markets. Our automotive business grew by 38% year-on-year, while industrial and medical revenues each increased by around 20%. This shows that X‑FAB, with its specialty technologies, is perfectly positioned to continue its growth path in the future. I am pleased with the progress we have made in expanding our capacity to better serve our customers’ demand. 2024 will be a very important year for our capacity expansion program, which runs through 2025. The consistently strong development of our prototyping revenues reflecting new business wins gives us confidence in X-FAB's future success and the achievement of our long-term goals.

X-FAB Quarterly Conference Call

X-FAB’s fourth quarter results will be discussed in a live conference call/webcast on Thursday, February 8, 2024, at 6.30 p.m. CET. The conference call will be in English.

Please register here for the webcast (listen only). Please register here for the conference call (listen and ask questions).

The first quarter 2024 results will be communicated on April 25, 2024.

About X-FAB

X-FAB is the leading analog/mixed-signal and MEMS foundry group manufacturing silicon wafers for automotive, industrial, consumer, medical and other applications. Its customers worldwide benefit from the highest quality standards, manufacturing excellence and innovative solutions by using X-FAB’s modular CMOS processes in geometries ranging from 1.0 µm to 110 nm, and its special silicon carbide and MEMS long-lifetime processes. X-FAB’s analog-digital integrated circuits (mixed-signal ICs), sensors and micro-electro-mechanical systems (MEMS) are manufactured at six production facilities in Germany, France, Malaysia and the U.S. X-FAB employs more than 4,200 people worldwide. For more information, please visit www.xfab.com.

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.

Condensed Consolidated Statement of Profit and Loss

in thousands of USD

Quarter

ended 31 Dec 2023

unaudited

Quarter

ended 31 Dec 2022

unaudited

Quarter

ended 30 Sep 2023

unaudited

Year

ended 31 Dec 2023

unaudited

Year

ended 31 Dec 2022

audited

Revenue*

239,750

183,638

223,452

890,181

739,469

Revenue recognized over time

-2,017

0

10,360

16,605

0

Total revenue

237,733

183,638

233,812

906,786

739,469

Revenues in USD in %

57

56

57

56

58

Revenues in EUR in %

43

44

43

44

42

Cost of sales

-174,183

-142,791

-164,147

-648,734

-563,515

Gross Profit

63,551

40,847

69,665

258,052

175,954

Gross Profit margin in %

26.7

22.2

29.8

28.5

23.8

 

 

 

 

 

 

Research and development expenses

-12,581

-10,208

-10,782

-47,191

-40,803

Selling expenses

-2,157

-2,218

-1,999

-8,463

-8,179

General and administrative expenses

-13,113

-9,400

-11,583

-47,157

-37,487

Rental income and expenses from investment properties

-532

-448

977

2,906

-298

Other income and other expenses

392

2,458

-2,376

-472

-31,852

Operating profit

35,559

21,031

43,902

157,674

57,335

Finance income

10,451

10,635

9,011

34,658

36,531

Finance costs

-10,172

-10,472

-8,493

-37,149

-56,804

Net financial result

280

163

518

-2,490

-20,273

 

 

 

 

 

 

Profit before tax

35,839

21,194

44,420

155,184

37,062

Income tax

2,964

20,025

-2,747

6,711

15,429

Profit for the period

38,803

41,219

41,673

161,895

52,491

 

 

 

 

 

 

Operating profit (EBIT)

35,559

21,031

43,902

157,674

57,335

Depreciation

24,048

21,161

21,808

87,939

77,534

EBITDA

59,607

42,192

65,711

245,614

134,869

EBITDA margin in %

25.1

23.0

28.1

27.1

18.2

 

 

 

 

 

 

Earnings per share at the end of period

0.30

0.32

0.32

1.24

0.40

Weighted average number of shares

130,631,921

130,631,921

130,631,921

130,631,921

130,631,921

 

 

 

 

 

 

EUR/USD average exchange rate

1.07570

1.01900

1.08842

1.08138

1.05431

Amounts in the financial tables provided in this press release are rounded to the nearest thousand except when otherwise indicated, rounding differences may occur.

Condensed Consolidated Statement of Financial Position

in thousands of USD

Year ended

31 Dec 2023

unaudited

Year ended

31 Dec 2022

audited

ASSETS

 

 

Non-current assets

 

 

Property, plant, and equipment

734,488

460,126

Investment properties

7,171

7,675

Intangible assets

5,627

6,199

Other non-current assets

58

79

Deferred tax assets

83,772

67,977

Total non-current assets

831,117

542,056

 

 

 

Current assets

 

 

Inventories

269,227

214,435

Contract assets

24,010

0

Trade and other receivables

123,101

73,116

Other assets

50,658

56,024

Cash and cash equivalents

405,701

369,425

Total current assets

872,698

713,001

 

 

 

TOTAL ASSETS

1,703,814

1,255,057

 

 

 

EQUITY AND LIABILITIES

 

 

Equity

 

 

Share capital

432,745

432,745

Share premium

348,709

348,709

Retained earnings

180,159

16,509

Cumulative translation adjustment

-301

-226

Treasury shares

-770

-770

Total equity attributable to equity holders of the parent

960,542

796,967

 

 

 

Non-controlling interests

0

0

 

 

 

Total equity

960,542

796,967

 

 

 

Non-current liabilities

 

 

Non-current loans and borrowings

42,661

63,432

Other non-current liabilities and provisions

4,024

4,024

Total non-current liabilities

46,685

67,456

 

 

 

Current liabilities

 

 

Trade payables

90,681

53,654

Current loans and borrowings

218,316

233,513

Other current liabilities and provisions

387,591

103,467

Total current liabilities

696,588

390,634

 

 

 

TOTAL EQUITY AND LIABILITIES

1,703,814

1,255,057

Condensed Consolidated Statement of Cash Flow

in thousands of USD

Quarter

ended 31 Dec 2023

unaudited

Quarter

ended 31 Dec 2022

unaudited

Quarter

ended 30 Sep 2023

unaudited

Year

ended 31 Dec 2023

unaudited

Year

ended 31 Dec 2022

audited

Income before taxes

35,839

21,194

44,420

155,184

37,062

 

 

 

 

 

 

Reconciliation of net income to cash flow arising from operating activities:

16,227

20,664

26,845

88,948

96,296

Depreciation and amortization, before effect of grants and subsidies

24,048

21,161

21,808

87,939

77,534

Recognized investment grants and subsidies netted with depreciation and amortization

-730

-811

-753

-2,972

-3,346

Interest income and expenses (net)

607

3,242

-105

2,600

17,407

Loss/(gain) on the sale of plant, property, and equipment (net)

-199

-1,890

-1,554

-3,373

-3,889

Loss/(gain) on the change in fair value of derivatives and financial assets (net)

0

500

0

0

500

Other non-cash transactions (net)

-7,498

-1,538

7,448

4,754

8,090

 

 

 

 

 

 

Changes in working capital:

70,615

12,564

-38,694

172,490

-32,886

Decrease/(increase) of trade receivables

-469

9,571

3,206

-39,774

-6,661

Decrease/(increase) of other receivables & prepaid expenses

5,371

-7,955

-6,943

4,855

-12,759

Decrease/(increase) of inventories

-8,266

-10,159

-13,049

-52,504

-33,422

Decrease/(increase) of contract assets

2,017

0

0

-24,010

0

(Decrease)/increase of trade payables

6,323

6,563

-19,254

6,134

-1,873

(Decrease)/increase of other liabilities

65,666

14,544

-2,653

277,789

21,828

 

 

 

 

 

 

Income taxes (paid)/received

-3,275

77

-2,874

-6,658

-480

 

 

 

 

 

 

Cash Flow from operating activities

119,405

54,500

29,697

409,964

99,991

 

 

 

 

 

 

Cash Flow from investing activities:

 

 

 

 

 

Payments for property, plant, equipment & intangible assets

-100,432

-54,056

-83,964

-337,789

-180,580

Payments for investments

0

0

0

0

-204

Payments for loan investments to related parties

-39

-106

-61

-276

-299

Proceeds from loan investments related parties

47

54

44

252

284

Proceeds from sale of property, plant, and equipment

235

1,902

1,805

3,733

4,017

Interest received

3,748

895

3,139

10,457

1,801

 

 

 

 

 

 

Cash Flow used in investing activities

-96,442

-51,311

-79,038

-323,622

-174,981

Condensed Consolidated Statement of Cash Flow – con’t

in thousands of USD

Quarter

ended 31 Dec 2023

unaudited

Quarter

ended 31 Dec 2022

unaudited

Quarter

ended 30 Sep 2023

unaudited

Year

ended 31 Dec 2023

unaudited

Year

ended 31 Dec 2022

audited

Cash Flow from (used in) financing activities:

 

 

 

 

 

Proceeds from loans and borrowings

105,640

32,002

85,904

205,784

184,272

Repayment of loans and borrowings

-112,939

-5,358

-79,067

-241,806

-11,420

Receipts of sale & leaseback arrangements

0

0

0

0

7,723

Payments of lease installments

-1,197

-1,283

-1,530

-5,512

-5,662

Receipt of government grants and subsidies

0

433

0

0

945

Interest paid

-7,170

-3,738

-1,892

-11,630

-17,812

Distribution to non-controlling interests

0

0

0

0

-11

 

 

 

 

 

 

Cash Flow from (used in) financing activities

-15,666

22,056

3,415

-53,164

158,035

 

 

 

 

 

 

Effect of changes in foreign currency exchange rates on cash

7,129

16,712

-4,587

3,099

-3,808

Increase/(decrease) of cash and cash equivalents

7,298

25,245

-45,926

33,177

83,046

Cash and cash equivalents at the beginning of the period

391,274

327,468

441,786

369,425

290,187

Cash and cash equivalents at the end of

the period

405,701

369,425

391,274

405,701

369,425

*excluding revenues recognized over time according to IFRS 15

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208800847/en/

X-FAB Press Contact Uta Steinbrecher Investor Relations X-FAB Silicon Foundries +49-361-427-6489 uta.steinbrecher@xfab.com