Soitec Reports Fourth Quarter Revenue and Full-Year Results of
Fiscal Year 2024
SOITEC REPORTS FOURTH QUARTER REVENUE
ANDFULL-YEAR RESULTS OF FISCAL YEAR
2024
- Q4’24 revenue reached €337m, down 2% at constant
exchange rates and perimeter compared to the record quarter
Q4’23
- FY’24 revenue amounted to €978m, down 10% both at
constant exchange rates and perimeter and on a reported basis, in
line with latest guidance
- FY’24 EBITDA1 margin2 at the level of 34%, also in line
with latest guidance
- FY’24 net profit, reached €178m, an 18%
margin
- FY’25 outlook confirmed: Soitec expects revenue to be
stable year-on-year at constant exchange rates and perimeter and
EBITDA1 margin2 to reach around 35%
- Changes in the Board of Directors: Frédéric Lissalde to
be proposed as Director at the next Annual General
Meeting
Bernin (Grenoble), France, May 22nd,
2024 – Soitec (Euronext Paris), a world leader in
designing and manufacturing innovative semiconductor materials,
today announced its revenue for the fourth quarter of fiscal year
2024 and its full-year results of fiscal year 2024 (ended on March
31st, 2024). The financial statements3 were approved by the Board
of Directors during its meeting today.
Pierre Barnabé, Soitec’s CEO, commented:
“Fiscal year 2024 was a challenging year, marked by the
impact on our sales of RF-SOI inventories correction across the
entire smartphone value chain. Despite these difficult market
conditions, we succeeded in maintaining a solid level of
profitability, while continuing to invest both in innovation and
industrial capacity to prepare for the future.
Regarding our fiscal year 2025, the
RF-SOI inventory correction will continue to impact our revenue
through the first part of the year. However, we are seeing early
signs of improvement downstream, led by the ongoing return to
growth of the smartphone market, which gives us confidence in the
recovery of our RF-SOI sales in the second half of the year.
At the same time, we will continue to benefit from strong
performance of our other SOI products, and from the successful
expansion of our product portfolio, with increased penetration of
POI and the ramp-up of SmartSiCTM.
Looking ahead, we remain very confident
in our ability to leverage the significant growth drivers
underpinning our three end-markets. Coupled with the increasing
adoption of engineered substrates to deliver more powerful and
energy-efficient solutions to a growing number of customers, our
continued diversification and expansion of our product
portfolio, in both SOI and Compound substrates, supports our clear
vision towards $2bn revenue in the medium term, with significant
margin expansion potential,” added Pierre Barnabé.
Fourth quarter FY’24 consolidated
revenue
|
Q4’24 |
Q4’23 |
Q4’24/Q4’23 |
|
|
|
|
|
(Euros
millions) |
|
|
change reported |
chg. at const. exch. rates & perimeter |
|
|
|
|
|
Mobile
Communications |
222 |
220 |
+1% |
+1% |
Automotive
& Industrial |
44 |
47 |
-6% |
-6% |
Smart
Devices |
70 |
77 |
-9% |
-9% |
|
|
|
|
|
Total
revenue |
337 |
344 |
-2% |
-2% |
Soitec revenue reached 337 million Euros in the
fourth quarter of FY’24, down 2% both on a reported basis and at
constant exchange rates and perimeter4 against the record quarterly
revenue of 344 million Euros achieved in the fourth quarter of
FY’23.
Mobile Communications
In the fourth quarter of FY’24, Mobile
Communications revenue reached 222 million Euros, up 1%
year-on-year at constant exchange rates compared to the fourth
quarter of FY’23 and up 71% sequentially compared to the third
quarter of FY’24.
As mentioned in previous quarterly publications,
Soitec revenue has been affected since the beginning of fiscal year
2024 by the ongoing inventory adjustment of RF-SOI
products at its customers level. In the fourth quarter of
FY’24, RF-SOI revenue benefited from some restocking by major
customers in anticipation of a smartphone market recovery in
calendar year 2024, and also from orders by new RF-SOI customers.
This temporary sequential rebound means that RF-SOI inventories at
foundries level remain high at the end of fiscal year 2024, which
will impact RF-SOI revenue in the first half of FY’25. The early
signs of improvement with some downstream inventory digestion at
OEMs and Fabless level, supported by the ongoing penetration of
high-end smartphones, are expected to support growth in the second
half of FY’25.
Sales of POI
(Piezoelectric-on-Insulator) wafers dedicated to
smartphone RF filters have been significantly growing
quarter-over-quarter since the beginning of fiscal year 2024, with
another sequential double-digit growth recorded in the fourth
quarter of FY’24 compared to the third quarter of FY’24. POI
activity benefited from the full impact of the two new customers in
entered in production in the third quarter of FY’24 as well as a
new US tier one customer in the fourth quarter of FY’24, pushing
the total to eight, while more than ten customers are in the
qualification phase.
Sales of FD-SOI wafers continue
to show year-on-year growth, demonstrating the value they bring to
front end modules integrated in both 5G Sub-6 GHz and 5G mmWave
smartphones.
Automotive & Industrial
Automotive & Industrial revenue reached 44
million Euros in the fourth quarter of FY’24, down 6% year-on-year
at constant exchange rates compared to the fourth quarter of FY’23
and sequentially stable compared to the third quarter of FY’24.
Soitec continues to leverage strong demand from
the automotive industry, powered by increasing semiconductor
content embedded in the latest generations of vehicles to enable
more digitalization - autonomous and assisted driving, functional
safety, infotainment – and higher electrification with notably the
growing penetration of electric vehicles.
Power-SOI wafers continued to
show year-on-year growth in the fourth quarter of FY’24,
essentially driven by higher volumes. Growing demand for Power-SOI,
which enables infotainment, functional safety and Battery
Management Systems, strengthens the roadmap towards 300mm
substrates.
In the fourth quarter of FY’24, FD-SOI
wafers sales, which continued to be mostly driven by
adoption for automotive microcontrollers, recorded a year-on-year
decline in volumes due to a high comparison basis in the fourth
quarter of FY’23. Looking ahead, strengthening demand from key IDMs
for FD-SOI, notably for automotive radar and AI applications,
supports Soitec’s product roadmap towards 18nm and beyond.
Contribution of revenue generated by Soitec’s
SmartSiCTM technology for future generations of
electric vehicles has further increased in the fourth quarter of
FY’24 compared to previous quarters but was slightly lower on a
year-on-year basis as Soitec benefited in the fourth quarter of
FY’23 from an initial installment in connection with its
cooperation agreement with STMicroelectronics. Soitec’s SmartSiCTM
roadmap is on track on all aspects: technology, industrial, supply
and commercial. A second customer was secured last February.
Production ramp-up at Soitec’s new plant dedicated to SmartSiC™
substrates is still expected from the second half of FY’25.
Smart Devices
Smart Devices revenue reached 70 million Euros
in the fourth quarter of FY’24, down 9% at constant exchange rates
compared to the fourth quarter of FY’23, up 8% on sequential basis
compared to the third quarter of FY’24.
Products dedicated to Smart Devices are
supporting the need for more complex sensors, higher connectivity
functionalities and embedded intelligence, leading to more powerful
and energy-efficient chips for Edge Artificial Intelligence, Image
Sensors, Data Centers and Cloud Computing.
Supported by structural demand for Edge
Computing devices across consumer and industrial sectors, sales of
FD-SOI wafers in the fourth quarter of FY’24 were
broadly in line with revenue recorded in the fourth quarter of
FY’23 as well as with the level achieved in the third quarter of
FY’24.
After low sales in the first half of FY’24,
sales of Imager-SOI wafers for 3D imaging
applications, rebounded in the third quarter of FY’24 and remained
at a sound level in the fourth quarter of FY’24.
Sales of Photonics-SOI wafers
were lower than in the fourth quarter of FY’23, impacted by a
challenging data center environment.
FY’24 consolidated revenue
|
FY’24 |
FY’23 |
FY’24/FY’23 |
|
|
|
|
|
(Euros
millions) |
|
|
change reported |
chg. at const. exch. rates & perimeter |
|
|
|
|
|
Mobile
Communications |
611 |
731 |
-16% |
-16% |
Automotive
& Industrial |
163 |
141 |
+16% |
+16% |
Smart
Devices |
204 |
217 |
-6% |
-6% |
|
|
|
|
|
Total
revenue |
978 |
1,089 |
-10% |
-10% |
Overall, consolidated revenue
reached 978 million Euros in FY’24, down 10% both on a reported
basis and at constant exchange rates and perimeter5 compared to
1,089 million Euros in FY’23. This 10% decline is in line with
Soitec’s latest guidance provided in early February 2024.
The decline in revenue essentially reflects
lower volumes, as well as an unfavorable mix effect. Performance
was mixed across Soitec’s three end-markets:
- Mobile Communications revenue reached 611
million Euros in FY’24 (62% of total revenue), down 16% on a
reported basis and at constant exchange rates compared to FY’23.
The decline reflects lower RF-SOI volumes in connection with the
inventory adjustment resulting from the smartphone market slowdown
in 2022 and 2023. It was, however, partly offset by a significant
acceleration in POI and, to a lesser extent, growing FD-SOI
penetration.
- Automotive & Industrial revenue amounted
to 163 million Euros in FY’24 (17% of total revenue), up
16% on a reported basis and at constant exchange rates
compared to FY’23. This strong performance was essentially driven
by a solid increase in Power-SOI wafer sales (mostly higher
volumes, but also a favorable price / mix effect). Sales of
automotive FD-SOI came a bit lower than in FY’23 which was a
particularly high comparison basis. Soitec also benefited from the
growth in revenue generated by SmartSiCTM technology.
- Smart Devices revenue reached 204 million
Euros in FY’24 (21% of total revenue), down 6% on a reported
basis and at constant exchange rates compared to FY’23. Solid
growth in FD-SOI wafer sales was more than offset by lower sales of
both Imager-SOI wafers and Photonics-SOI due to lower smartphone
volumes and the weak data center environment respectively.
EBITDA1 margin2 maintained at a robust
level
Consolidated income statement (part 1)
(Euros
millions) |
FY’24 |
FY’23 |
% change |
|
|
|
|
Revenue |
978 |
1,089 |
-10% |
|
|
|
|
|
|
|
|
Gross profit |
332 |
402 |
-17% |
As a % of revenue |
34.0% |
37.0% |
|
|
|
|
|
Net research and development
expenses |
(61) |
(64) |
-5% |
Selling, general and administrative
expenses |
(63) |
(71) |
-12% |
|
|
|
|
|
|
|
|
Current operating
income |
208 |
267 |
-22% |
As a % of revenue |
21.3% |
24.5% |
|
|
|
|
|
|
|
|
|
EBITDA1,6 |
332 |
391 |
-15% |
As a % of revenue |
34.0% |
36.0% |
|
Despite the decrease in revenue, Soitec was able
to reach a solid level of profitability with current
operating income amounting to 208 million Euros in FY’24,
down from 24.5% of revenue in FY’23 to 21.3% of revenue in
FY’24:
- Reflecting the lower level of activity recorded in FY’24,
gross profit reached 332 million Euros, down from
402 million Euros in FY’23. Gross margin declined from 37.0% of
revenue in FY’23 to 34.0% in FY’24 as a result of lower utilization
of Soitec industrial capacity resulting from lower volumes of
RF-SOI wafers. The lower gross margin also reflects, to a lesser
extent, an unfavorable mix effect. In addition, depreciation costs
went higher due to previous capacity investments. These factors
were slightly offset by the recognition of subsidies and strong
cost management.
- Net R&D expenses decreased from 64 million
Euros in FY’23 to 61 million Euros in FY’24, representing 6.3% of
revenue. Lower net R&D expenses came as a result of higher
subsidies. Gross R&D expenses before capitalization went up 12%
to 137 million Euros, in line with the ambition to continue to
invest in new products development. On the other hand, the Group
benefited from the recognition of higher R&D subsidies mainly
due to the IPCEI MECT program.
- Soitec also drove selling, general and administrative
(SG&A) expenses down from 71 million Euros in
FY’23 to 63 million Euros in FY’24, representing a slightly lower
percentage of revenue, at 6.4% compared to 6.5% in FY’23. Salary
inflation has been more than offset by an overall effort to contain
external spendings, lower share-based compensation as well as
favorable non-recurring effects. IT expenses went up, notably
reflecting the Group’s efforts to strengthen cybersecurity.
The EBITDA1 amounted to 332
million Euros in FY’24, down 15% from 391 million Euros in FY’23.
EBITDA1 margin2 remained a robust level, reaching 34.0%, two points
below the record 36.0% margin of FY’23. Despite a lesser absorption
of fixed costs due to lower volumes and an unfavorable mix effect,
Soitec achieved a strong industrial performance and kept a tight
control over operating expenses in an inflationary context, while
maintaining a high level of R&D investment.
Consolidated income statement (part 2)
(Euros
millions) |
FY’24 |
FY’23 |
% change |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
205 |
268 |
-23% |
|
|
|
|
Net financial result |
(5) |
(10) |
|
Income tax |
(23) |
(26) |
|
|
|
|
|
|
|
|
|
Net profit from continuing
operations |
178 |
232 |
-23% |
|
|
|
|
Net profit from discontinued
operations |
0 |
1 |
|
|
|
|
|
|
|
|
|
Net profit, Group
share |
178 |
233 |
-23% |
|
|
|
|
|
|
|
|
Basic earnings per share (in
€) |
5.00 |
6.63 |
-25% |
|
|
|
|
Diluted earnings per share (in
€) |
4.88 |
6.41 |
-24% |
|
|
|
|
|
|
|
|
Weighted average number of ordinary
shares |
35,655,679 |
35,133,150 |
|
|
|
|
|
Weighted average number of diluted
ordinary shares |
37,710,587 |
37,240,396 |
|
The net financial result was a
net financial expense of 5 million Euros in FY’24 compared to a net
financial expense of 10 million Euros in FY’23. In the context
of rising interest rates, the Group benefited from a 14 million
Euros increase in financial income mainly from cash investments,
which more than offset a 6 million Euros increase in net financial
expenses and a 4 million Euros impairment of financial
investments.
The income tax expense amounted
to 23 million Euros in FY’24 compared to 26 million Euros in FY’23.
The slightly higher effective tax rate of 11% compared to 10% in
FY’23 reflects both a higher contribution from Soitec’s Singaporean
operations to the Group’s results and lower deferred taxes on tax
losses carryforwards.
The net profit, Group share,
amounted to 178 million, representing an 18.2% net margin.
Free Cash Flow reflects seasonality and investments in
mid-term growth
Consolidated cash-flows
(Euros
millions) |
FY’24 |
FY’23 |
|
|
|
Continuing operations |
|
|
|
|
|
EBITDA1 |
332 |
391 |
|
|
|
Change in working capital |
(142) |
(96) |
Tax paid |
(25) |
(32) |
|
|
|
|
|
|
Net cash generated by operating
activities |
166 |
263 |
|
|
|
Net cash used in investing
activities |
(209) |
(228) |
|
|
|
|
|
|
Free Cash Flow |
(43) |
34 |
|
|
|
|
|
|
New loans and debt repayment (including
finance leases), drawing on credit lines |
(15) |
32 |
Financial expenses |
(12) |
(7) |
Liquidity contract and other items |
(7) |
(4) |
|
|
|
|
|
|
Net cash (used in) / generated from
financing activities |
(33) |
20 |
|
|
|
Impact of exchange rate
fluctuations |
(3) |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
Net change in
cash |
(80) |
60 |
The Group generated a negative Free Cash
Flow of 43 million Euros in FY’24 compared to a
34 million Euros positive Free Cash Flow in FY’23. This comes
as a result of lower EBITDA, higher working capital needs, and
capital expenditure maintained at a high level to support future
expansion.
The cash outflow from working
capital amounted to 142 million Euros in FY’24, compared
to 96 million Euros in FY’23. This is essentially
reflecting:
- a 19 million Euros increase in inventories due to late
changes in the customers demand leading to raw material inventory
at the end of the year,
- a 94 million Euros increase in trade receivables, explained by
the seasonality of sales with high Q4’24 including a very high
level in March, combined with an unfavorable customer mix,
- a 45 million Euros decrease in trade payables, mainly due to
non-recurring downpayments as the Group is increasing its supplier
base for SOI products and securing new suppliers for its SmartSiCTM
roadmap.
The net cash used in investing
activities amounted to 209 million Euros in FY’24,
slightly lower than the 228 million Euros spent in FY’23. Including
tools financed through leasing contracts (51 million Euros over
FY’24), total cash out related to investing activities amounted to
276 million Euros, slightly below the 290 million Euros initially
planned, as the Group uses agility in deploying capacity in line
with customer demand. This takes into account 17 million Euros of
financial income from cash investment. Capital expenditure was
essentially related to industrial investments:
- 300-mm SOI production capacity investments, both in Bernin and
in Singapore, including refresh capacity in Bernin 4
- the installation of the first SmartSiC™ production capacities
and the second tranche of Bernin 4,
- work related to the extension of Singapore facility.
Capital expenditure also included capitalized
development costs, notably related to SmartSiC™ technology,
investments supporting the Group’s environmental policy and IT
investments.
Net cash used in financing
activities amounted to 33 million Euros in FY’24
essentially reflecting a net decrease in borrowings and related
interest paid, as well as 8 million Euros dedicated to the
implementation of a liquidity contract.
In total, including a 3 million Euros negative
impact of exchange rate fluctuations (6 million Euros positive
impact in FY’23), the net cash outflow reached 80
million Euros in FY’24 (compared to a cash generation of 60 million
Euros in FY’23) leading to a cash position of 708 million
Euros on March 31st, 2024.
Strong balance sheet
maintained
Soitec maintained a strong balance sheet as of
March 31st, 2024.
Shareholders’ equity increased
by 189 million Euros in FY’24 to 1.5 billion Euros on March 31st,
2024, mainly attributed to the net profit generated during the
period.
Financial debt stood at 747
million Euros on March 31st, 2024. This represents a 99 million
Euros increase compared to March 31st, 2023, resulting from a net
increase in leasing debt, including the arrangement of the first
tranche of the lease secured for Bernin 4 for 59 million Euros and
other lease agreements to finance production equipment for 51
million Euros.
The combination of the 99 million Euros increase
in financial debt and the 80 million Euros cash outflow led to
a net debt position7 of 39 million Euros on March
31st, 2024 compared to a net cash position7 of 140
million Euros on March 31st, 2023,
FY’25 outlook confirmed
Soitec confirms expecting FY’25
revenue to be stable year on year at constant exchange
rates and perimeter as compared to FY’24. However, as previously
reported, the level of RF-SOI inventories at some foundries remains
high, which will impact the first half of FY’25 performance. H1’25
revenue is expected to decline by around 15% year-on-year, at
constant exchange rates and perimeter, with a low point expected in
Q1’25. Soitec then anticipates revenue to rebound in the second
half of FY’25, driven by the recovery of the RF-SOI activity
following the end of the inventory correction. Besides, Soitec will
continue to benefit from the strong structural demand for other SOI
products, the continued adoption of POI and the start of the
SmartSiCTM ramp-up.
Soitec also confirms expecting FY’25
EBITDA1 margin2 to be around 35%.
FY’25 Capital expenditure is
expected to be around 250 million Euros in order to support growth
beyond FY’25. The Group will continue to invest in capacity
expansion: 300mm SOI in Singapore, POI ramp up and SmartSiCTM tools
in France. The Group will also continue ongoing investments in
innovation, sustainability as well as IT and cybersecurity
investments.
Soitec confidently foresees its long-term growth
trajectory to resume rapidly after the end of the RF-SOI inventory
correction. The strong penetration of 5G, the advent of
electrification for automotive and the acceleration of artificial
intelligence provide significant growth opportunities, thanks in
particular to the successful expansion of Soitec’s product
portfolio, both in SOI and Compound semiconductors.
As a reminder, in line with what Soitec
communicated in its March 27th 2024 press release, Soitec confirms
that no more guidance will be given beyond yearly guidance. For
more details regarding the mid-term ambition, please refer to the
investors slide presentation released on May 23rd, 2024.
Changes in Soitec Board of Directors:
Frédéric Lissalde to be proposed as Director at the next Annual
General Meeting
Following the recommendation of the Compensation
and Nominations Committee, Soitec’s Board of Directors today
unanimously decided to propose the appointment of Frédéric Lissalde
for a three-year term as Director, at the next Annual General
Meeting to be held on 23rd July, 2024.
Frédéric Lissalde is President and CEO of
BorgWarner Inc. (NYSE) an American group world leader in mobility
solutions, with sales of about $14 billion. Frédéric Lissalde will
bring experience at the helm of a global industrial company as well
as a deep knowledge of the challenges around the transformation of
the global automotive sector. He will serve as an independent
Director in accordance with the provisions of the AFEP-MEDEF
Code.
At the Annual General Meeting, the Board will
also propose the reappointments of Françoise Chombar, Satoshi
Onishi and Shuo Zhang, as announced on March 27, 2024.
The Board of Directors also took note of the
decisions of the CGT Soitec and the Métallurgie Isère CFE-CGC trade
unions to reappoint Wissème Allali and Didier Landru respectively
as Directors representing employees, as from the next Annual
General Meeting, for a further three-year term.
Biography of Frédéric
Lissalde
Frédéric Lissalde joined BorgWarner Inc., a
world leader in mobility solutions, in 2000 and has served as
President and CEO since 2018. He previously held positions at Valeo
and ZF in program management, product engineering, operations and
sales in the UK, Japan and France. Frédéric Lissalde has been a
member of the Board of Directors of Autoliv, Inc (NYSE) since 2020.
He holds a master's degree in engineering from ENSAM - Paris, and
an MBA from HEC Paris. He has also attended several executive
education programs at INSEAD, Harvard, Standford and MIT.
Key events of FY’24
Soitec inaugurates new production
facility in Bernin dedicated to SmartSiC™ substrates
On September 28th, 2023, Soitec inaugurated its
new plant in Bernin dedicated to SmartSiC™ substrates for future
generations of electric vehicles, a key step in the execution of
its growth ambitions. Soitec aims at positioning SmartSiC™, a
technology based on silicon carbide (SiC), as a future
electric-vehicle standard with improved efficiency for energy
conversion systems. Soitec’s patented SmartCut™ technology allows
each conventional monoSiC substrate to be re-used more than 10
times, reducing CO2 emissions during wafer manufacturing by
70%.
Soitec introduces new water reuse process, first of its
kind in Europe
On January 15th, 2024, Soitec announced the
launch of a new industrial installation allowing substrate rinse
water to be partially reused in the production of ultra-pure water
for cleanrooms at its French manufacturing facilities, an important
milestone in its continuous improvement of resource management.
Thanks to this innovation, the first of its kind in Europe at this
scale, Soitec intends to significantly increase the proportion of
water that can be reused in its industrial processes. The
wastewater reuse rate at its historic site in Bernin (Isère) is
thereby expected to rise from 19% in 2023 to over 35% in 2024.
At the same time, Soitec continues to reduce its
water consumption. The 30% reduction per unit produced achieved
between 2021 and 2023 will be complemented by a further 30%
reduction by 2030.
Signature of IPCEI 2 grant
contract
On January 26th, 2024, Soitec signed a contract
regarding financial support from 2022 to 2026 from the French State
through the France 2030 program. This project has been validated by
the European Commission as part of the Important Project of Common
European Interest Microelectronics and Connectivity (IPCEI ME/TC)
2026. In line with the objectives set out in the European Chips Act
Communication, the measure will strengthen Europe’s security of
supply and sovereignty in semiconductor technologies.
This funding will mainly be used to support
Research & Development and first industrialisation activities
and will contribute to the ramp-up of the Bernin 4 (SmartSiC™) and
Bernin 3 (POI) factories.
Eric Meurice to step down as a Director
and Chairman of the Board
On March 27th, 2024, the Board of Directors took
note of Eric Meurice's decision not to seek renewal of his mandate
as Director at the next Annual General Meeting of shareholders
on July 23th, 2024. At that date, Eric Meurice will step down
as a Director and as Chairman of the Board. He will take on the
role of strategic advisory to the Chief Executive Officer for a
period of one year.
Christophe Gégout, currently independent
Referent Director, Chairman of the Audit and Risk Committee and
member of the Strategic and ESG Committees, will replace Eric
Meurice as Chairman of the Board and Chairman of the Strategic
Committee for a transitional period, effective from the close of
the Annual General Meeting. Christophe Gégout will be replaced as
Referent Director by the independent Director Delphine
Segura-Vaylet and as Chair of the Audit and Risks Committee by the
independent Director Shuo Zhang.
# # #
FY’24 results will be commented during
an analyst and investor meeting in Paris on May 23rd, 2024, at 2pm
CET. The meeting will be held in English.
The live webcast and slide presentation will be
available on:
https://channel.royalcast.com/soitec/#!/soitec/20240523_1
# # #
Agenda
Soitec’s Annual General Meeting will be held on
July 23rd, 2024.
Q1’25 revenue is due to be published on July
23rd, 2024, after market close.
# # #
Disclaimer
This document is provided by Soitec (the
“Company”) for information purposes only.
The Company’s business operations and financial
position are described in the Company’s Universal Registration
Document (which notably includes the Annual Financial Report). The
2023-2024 Universal registration Document will be filed with the
French stock market authority (Autorité des Marchés Financiers, or
AMF) on June 5th, 2024. . The French version of the 2023 - 2024
Universal Registration Document, together with English courtesy
translation for information purposes of both documents, are
available for consultation on the Company’s website
(www.soitec.com), in the section Company - Investors - Financial
Reports.
Your attention is drawn to the risk factors
described in Chapter 2.1 (Risk factors and controls mechanism) of
the Company’s Universal Registration Document.
This document contains summary information and
should be read in conjunction with the Universal Registration
Document.
This document contains certain forward-looking
statements. These forward-looking statements relate to the
Company’s future prospects, developments and strategy and are based
on analyses of earnings forecasts and estimates of amounts not yet
determinable. By their nature, forward-looking statements are
subject to a variety of risks and uncertainties as they relate to
future events and are dependent on circumstances that may or may
not materialize in the future. Forward-looking statements are not a
guarantee of the Company’s future performance. The occurrence of
any of the risks described in Chapter 2.1 (Risk factors and
controls mechanism) of the Universal Registration Document may have
an impact on these forward-looking statements. In particular, the
future consequences of geopolitical conflicts, notably the Ukraine
/ Russia situation, as well as rising inflation, may result in
greater impacts than currently anticipated in these forward-looking
statements.
The Company’s actual financial position, results
and cash flows, as well as the trends in the sector in which the
Company operates may differ materially from those contained in this
document. Furthermore, even if the Company’s financial position,
results, cash-flows and the developments in the sector in which the
Company operates were to conform to the forward-looking statements
contained in this document, such elements cannot be construed as a
reliable indication of the Company’s future results or
developments.
The Company does not undertake any obligation to
update or make any correction to any forward-looking statement in
order to reflect an event or circumstance that may occur after the
date of this document.
This document does not constitute or form part
of an offer or a solicitation to purchase, subscribe for, or sell
the Company’s securities in any country whatsoever. This document,
or any part thereof, shall not form the basis of, or be relied upon
in connection with, any contract, commitment or investment
decision.
Notably, this document does not constitute an
offer or solicitation to purchase, subscribe for or to sell
securities in the United States. Securities may not be offered or
sold in the United States absent registration or an exemption from
the registration under the U.S. Securities Act of 1933, as amended
(the “Securities Act”). The Company’s shares have not been and will
not be registered under the Securities Act. Neither the Company nor
any other person intends to conduct a public offering of the
Company’s securities in the United States.
# # #
About Soitec
Soitec (Euronext - Tech Leaders), a world leader
in innovative semiconductor materials, has been developing
cutting-edge products delivering both technological performance and
energy efficiency for over 30 years. From its global headquarters
in France, Soitec is expanding internationally with its unique
solutions, and generated sales of 1 billion Euros in fiscal year
2023-2024. Soitec occupies a key position in the semiconductor
value chain, serving three main strategic markets: mobile
communications, automotive and industrial, and smart devices. The
company relies on the talent and diversity of its 2,100 employees,
representing 50 different nationalities, working at its sites in
Europe, the United States and Asia. Soitec has registered over
4,000 patents.
Soitec, SmartSiC™ and Smart Cut™ are registered
trademarks of Soitec.
For more information: https://www.soitec.com/en/
and follow us on X : @Soitec_Official
# # #
Investor
Relations: investors@soitec.com |
Media
contacts: Isabelle Laurent+33 6 42 37 54
17
isabelle.laurent@oprgfinancial.fr Fabrice Baron+33 6 14 08 29
81 fabrice.baron@oprgfinancial.fr |
# # #
Financial information and consolidated financial statements in
appendix include:
- Consolidated revenue per quarter
- FY’24 consolidated income statement
- Balance sheet at March 31st, 2024
- FY’24 consolidated cash-flows
Appendix 1 – Consolidated revenue per
quarter
Quarterly
revenue |
Q1’23 |
Q2’23 |
Q3’23 |
Q4’23 |
Q1’24 |
Q2’24 |
Q3’24 |
Q4’24 |
|
FY’23 |
FY’24 |
(Euros
million) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile Communications |
152 |
189 |
170 |
220 |
89 |
169 |
130 |
222 |
|
731 |
611 |
Automotive & Industrial |
23 |
34 |
37 |
47 |
37 |
38 |
44 |
44 |
|
141 |
163 |
Smart
Devices |
28 |
45 |
67 |
77 |
31 |
37 |
65 |
70 |
|
217 |
204 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
203 |
268 |
274 |
344 |
157 |
245 |
240 |
337 |
|
1,089 |
978 |
Change in
quarterly revenue |
Q1’24/Q1 23 |
Q2’24/Q2’23 |
Q3’24/Q3’23 |
Q4’24/Q4’23 |
|
FY’24/FY’23 |
|
Reportedchange |
Organic change1 |
Reportedchange |
Organic change1 |
Reportedchange |
Organic change1 |
Reportedchange |
Organic change1 |
|
Reportedchange |
Organic change1 |
(vs. previous
year) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile Communications |
-42% |
-43% |
-10% |
-9% |
-23% |
-23% |
+1% |
+1% |
|
-16% |
-16% |
Automotive & Industrial |
+60% |
+57% |
+12% |
+13% |
+20% |
+21% |
-6% |
-6% |
|
+16% |
+16% |
Smart
Devices |
+12% |
+10% |
-18% |
-17% |
-4% |
-3% |
-9% |
-9% |
|
-6% |
-6% |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
-23% |
-24% |
-9% |
-7% |
-13% |
-12% |
-2% |
-2% |
|
-10% |
-10% |
- At constant exchange rates and comparable scope of
consolidation (there was no scope effect in FY’24)
Consolidated financial statements for FY’24
As previously reported, Soitec’s refocus on Electronics
operations decided in January 2015 was nearly completed on March
31st, 2016. Consequently, the FY’24 residual income and expenses
relating to Solar and Other activities are reported under ‘Net
result from discontinued operations’, below the ‘Operating income’
line, meaning that down to the line ‘Net result after tax from
continuing operations’, the consolidated income statement fully and
exclusively reflects the Electronics activity as well as the
Group’s corporate functions expenses. This was already the case in
FY’23 financial statements.
Appendix 2 - Consolidated income
statement
|
FY’24 |
FY’23 |
(Euro millions) |
(ended March 31, 2024) |
(ended March 31, 2023) |
|
|
|
|
|
|
Revenue |
978 |
1,089 |
|
|
|
Cost of sales |
(646) |
(686) |
|
|
|
|
|
|
Gross profit |
332 |
402 |
|
|
|
Research and development expenses |
(61) |
(64) |
SG&A expenses |
(63) |
(71) |
|
|
|
|
|
|
Current operating income |
208 |
267 |
|
|
|
Other operating income /
(expenses) |
(3) |
0 |
|
|
|
|
|
|
Operating income |
205 |
268 |
|
|
|
Financial income |
21 |
6 |
Financial expenses |
(25) |
(15) |
|
|
|
|
|
|
Net financial
expense |
(5) |
(10) |
|
|
|
|
|
|
Profit before tax |
201 |
258 |
|
|
|
Income tax |
(23) |
(26) |
|
|
|
|
|
|
Net profit from continuing
operations |
178 |
232 |
|
|
|
Net profit from discontinued
operations |
0 |
1 |
|
|
|
|
|
|
Consolidated net profit |
178 |
233 |
|
|
|
|
|
|
|
|
|
Net profit, Group share |
178 |
233 |
Basic earnings per share (in €) |
5.00 |
6.63 |
|
|
|
Diluted earnings per share (in €) |
4.88 |
6.41 |
|
|
|
Weighted average number of ordinary
shares |
35,655,679 |
35,133,150 |
|
|
|
Weighted average number of diluted
ordinary shares |
37,710,587 |
37,240,396 |
Appendix 3 - Balance sheet
Assets |
March 31, 2024 |
March 31, 2023 |
(Euro millions) |
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
Intangible assets |
156 |
128 |
Property, plant and equipment |
913 |
705 |
Non-current financial assets |
19 |
25 |
Other non-current assets |
70 |
59 |
Deferred tax assets |
62 |
67 |
|
|
|
|
|
|
Total non-current assets |
1,220 |
985 |
|
|
|
Current assets: |
|
|
|
|
|
Inventories |
209 |
175 |
Trade receivables |
448 |
363 |
Other current assets |
101 |
105 |
Current financial assets |
7 |
3 |
Cash and cash equivalents |
708 |
788 |
|
|
|
|
|
|
Total current assets |
1,472 |
1,435 |
|
|
|
Total assets |
2,692 |
2,420 |
Equity and liabilities |
March 31, 2024 |
March 31, 2023 |
(Euro millions) |
|
|
|
|
|
Equity: |
|
|
|
|
|
Share capital |
71 |
71 |
Share premium |
228 |
229 |
Reserves and retained earnings |
1,180 |
994 |
Other reserves |
15 |
12 |
|
|
|
|
|
|
Equity, Group
Share |
1,495 |
1,306 |
|
|
|
|
|
|
Total equity |
1,495 |
1,306 |
|
|
|
Non-current liabilities: |
|
|
|
|
|
Long-term financial debt |
669 |
578 |
Provisions and other non-current
liabilities |
79 |
80 |
|
|
|
|
|
|
Total non-current liabilities |
748 |
659 |
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term financial debt |
78 |
69 |
Trade payables |
169 |
171 |
Provisions and other current
liabilities |
202 |
216 |
|
|
|
|
|
|
Total current liabilities |
449 |
456 |
|
|
|
|
|
|
Total equity and liabilities |
2,692 |
2,420 |
Appendix 4 - Consolidated
cash-flows
|
FY’24 |
FY’23 |
(Euro millions) |
(ended March 31, 2024) |
(ended March 31, 2023) |
|
|
|
|
|
|
Consolidated net profit |
178 |
233 |
of which continuing operations |
178 |
232 |
|
|
|
Depreciation and amortization
expense |
126 |
106 |
Provisions / (reversals of provisions),
net |
4 |
12 |
Income tax |
23 |
26 |
Financial expense |
5 |
10 |
Share-based payments |
14 |
14 |
Other non-cash items |
(17) |
(8) |
Items related to discontinued
operations |
(1) |
(1) |
|
|
|
|
|
|
EBITDA1 |
332 |
391 |
of which continuing operations |
332 |
391 |
|
|
|
|
|
|
Increase / (decrease) in cash relating
to: |
|
|
|
|
|
Inventories |
(19) |
(36) |
Trade receivables |
(94) |
(112) |
Trade payables |
(45) |
40 |
Other receivables and liabilities |
17 |
11 |
Income tax paid |
(25) |
(32) |
|
|
|
|
|
|
Change in working capital and income
tax paid |
(167) |
(129) |
of which continuing operations |
(167) |
(129) |
|
|
|
|
|
|
Net cash generated by operating
activities |
165 |
262 |
of which continuing operations |
166 |
263 |
|
FY’24 |
FY’23 |
(Euro millions) |
(ended March 31, 2024) |
(ended March 31, 2023) |
|
|
|
|
|
|
Net cash generated by operating
activities |
165 |
262 |
of which continuing operations |
166 |
263 |
|
|
|
Purchases of intangible assets |
(48) |
(42) |
Purchases of property, plant and
equipment |
(177) |
(186) |
Acquisitions of financial assets |
(1) |
(5) |
Interest received |
17 |
4 |
|
|
|
|
|
|
Net cash used in investing activities
(1) |
(208) |
(228) |
of which continuing operations (1) |
(209) |
(228) |
|
|
|
Loans and drawdowns on credit
lines |
55 |
80 |
Repayment of borrowings (including
leases) |
(70) |
(48) |
Non-controlling interests |
(0) |
(3) |
Interest paid |
(12) |
(7) |
Liquidity contract |
(8) |
- |
Other financing flows |
2 |
(1) |
Financing flows related to discontinued
operations |
(0) |
(0) |
|
|
|
|
|
|
Net cash generated / (used) in
financing activities |
(33) |
20 |
of which continuing operations |
(33) |
20 |
|
|
|
Effects of exchange rate
fluctuations |
(3) |
6 |
|
|
|
|
|
|
Net change in cash |
(80) |
60 |
of which continuing operations |
(80) |
60 |
|
|
|
Cash at beginning of the
period |
788 |
728 |
Cash at end of the
period |
708 |
788 |
(1) According to IFRS, the cash used in investing activities is
calculated net of investments financed through leasing, which
accounted for 51 million Euros in FY’24 and 16 million Euros in
FY’23. Total cash out related to investing activities, therefore
amounted to 276 million Euros in FY’24 and 244 million Euros in
FY’23.
1 The EBITDA represents operating income before depreciation,
amortization, impairment of non-current assets, non-cash items
relating to share-based payments, provisions for impairment of
current assets and for contingencies and expenses, and disposals
gains and losses. EBITDA is not a financial indicator defined by
IFRS and may not be comparable to EBITDA as reported by other
groups. It represents additional information and should not be
considered as a substitute for operating income or net cash
generated by operating activities.
2 EBITDA margin = EBITDA from continuing operations /
Revenue.
3 Audit procedures were completed and the audit report is in the
process of being issued.
4 There was no scope effect in Q4’24
5 There was no scope effect in FY’24
6 EBITDA from continuing operations
7 The net cash position represents cash and cash equivalents
less financial debt. A positive net cash position reflects cash and
cash equivalents higher than financial debt. A net debt position
reflects cash and cash equivalents lower than financial debt.
- Soitec PR FY 24 results VA
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