SOITEC REPORTS FIRST HALF RESULTS OF FISCAL YEAR 2023
- Revenue reached €471m in H1’23, up 26% on a reported basis and up 18% at constant exchange rates and perimeter
- EBITDA1 margin2 reached 35.5% of revenue
- Current operating income increased by 46% to €110m
- Free Cash Flow was positive at €7m while capacity investments increased further
- FY’23 guidance confirmed: revenue growth expected around 20% at constant exchange rates and perimeter and EBITDA1 margin2 expected around 36%
Bernin (
“The first half of the year has also seen great progress on executing on our strategic initiatives, including the release of our first 200-mm silicon carbide SmartSiC wafer or the decision to extend our
Strong revenue growth and robust EBITDA1 margin2
Consolidated income statement (part 1)
(Euros millions) | H1’23 | H1’22 | % change |
Revenue | 471 | 373 | +26% |
Gross profit | 168 | 131 | +27% |
As a % of revenue | 35.6% | 35.2% | |
Net research and development expenses | (29) | (28) | +5% |
Selling, general and administrative expenses | (28) | (28) | -0% |
Current operating income | 110 | 75 | +46% |
As a % of revenue | 23.4% | 20.2% | |
EBITDA1 from continuing operations | 167 | 137 | +22% |
As a % of revenue | 35.5% | 36.8% |
Consolidated revenue reached 471 million Euros in H1’23 up 26% on a reported basis compared with
- Mobile communications continue to be supported by the ongoing adoption of 5G smartphones and WiFi6, as well as the deployment of 5G infrastructure. Revenue reached
341 million Euros in H1’23 (72% of total revenue), up 23% on a reported basis and up 14% at constant exchange rates and perimeter compared to H1’22. This is mainly reflecting ongoing success in radiofrequency applications materialized by the increase in RF content in every 5G smartphone, higher sales being enabled by the ongoing ramp-up in production atSingapore facility. FD-SOI wafers for front end modules also delivered strong growth while several customers are going through an adoption phase of POI wafers dedicated to RF filters. - Demand from the automotive industry is increasingly supported by infotainment, autonomous driving and functional safety, as well as by the shift to electric and hybrid engines. Automotive & Industrial revenue amounted to
57 million Euros in H1’23 (12% of total revenue), up 72% on a reported basis and up 59% at constant exchange rates and perimeter compared to H1’22. Growth mostly came from FD-SOI wafers dedicated to automotive applications whereas Power-SOI wafers also recorded a significant increase. - Smart devices market is driven by more complex sensors, higher connectivity functionalities and embedded intelligence, leading to more powerful and efficient edge artificial intelligence chips. Smart devices revenue reached
73 million Euros in H1’23 (16% of total revenue), up 17% on a reported basis and up 10% at constant exchange rates and perimeter compared to H1’22. Growth in FD-SOI wafers was very strong, confirming structural demand for Internet of Things (IoT) and Edge Computing devices across consumer and industrial sectors.Soitec also leveraged sustained growth in Photonics-SOI wafers for data transceivers and in Imager-SOI wafers for 3D imaging applications.
Gross profit reached
Current operating income increased by 46% to
- Net R&D expenses increased slightly from
28 million Euros in H1’22 to29 million Euros in H1’23 but they went down as a percentage of revenue, from 7.4% in H1’22 to 6.1% in H1’23. Gross R&D expenses before capitalization increased by7 million Euros asSoitec continued to invest in innovation and in the expansion of its product portfolio. - Selling, general and administrative (SG&A) expenses were stable compared to H1’22, at
28 million Euros , but they went down as a percentage of revenue, from 7.6% in H1’22 to 6.0% in H1’23. The increase in the number of staff and in salaries was offset by a decline in share-based compensation in line with the lower share price.
The EBITDA1 from continuing operations amounted to
Depreciation and amortization expenses went up from
Consolidated income statement (part 2)
(Euros millions) | H1’23 | H1’22 | % change |
Current operating income | 110 | 75 | +46% |
Other operating income and expenses | 0 | 9 | |
Operating income | 110 | 85 | +30% |
Net financial result | (2) | (5) | |
Income tax | (13) | (6) | |
Net profit from continuing operations | 95 | 74 | +27% |
Net profit / (loss) from discontinued operations | 0 | (0) | |
Net profit, Group share | 95 | 74 | +28% |
Basic earnings per share (in €) | 2.72 | 2.23 | +22% |
Diluted earnings per share (in €) | 2.65 | 2.14 | +24% |
Number of shares | 35,001,682 | 33,311,866 | |
Number of diluted shares | 36,951,749 | 36,680,990 |
In H1’23 the amount of other operating income and expenses was not material whereas the Group recorded a non-recurring income of
The net financial result was a loss of
Income tax expense amounted to
The net profit, Group share amounted to
Positive Free Cash Flow while capacity investments further increased
Consolidated cash-flows
(Euros millions) | H1’23 | H1’22 |
Continuing operations | ||
EBITDA1 | 167 | 137 |
Change in working capital | (26) | (82) |
Tax paid | (15) | 3 |
Net cash generated by operating activities | 126 | 59 |
Net cash used in investing activities | (120) | (101) |
Free Cash Flow | 7 | (43) |
Proceeds from shareholders and other items | 0 | 0 |
Drawing on credit lines, new loans and debt repayment (including finance leases) | (15) | (10) |
Financial expenses | (3) | (2) |
Net cash used in financing activities | (17) | (11) |
Impact of exchange rate fluctuations | 26 | 1 |
Net change in cash | 15 | (53) |
Discontinued operations | (0) | (2) |
Group net change in cash | 15 | (54) |
The Group was able to generate a
The cash outflow from working capital amounted to
Tax paid amounted to
Overall, net cash generated by operating activities more than doubled, from 59 million Euros in H1’22 to 126 million Euros in H1’23.
The net cash used in investing activities of continuing operations amounted to
Net of investments financed through leasing, which accounted for
Net cash used in financing activities of continuing operations amounted to
In total, including a
Overall,
Sound balance sheet maintained
Thanks to the strong performance achieved in H1’23,
Property, plant and equipment increased by a net amount of
Shareholders’ equity increased by
Financial debt stood at
Higher financial debt combined with the
FY’23 Outlook confirmed
In addition,
Key events of H1’23
CEA,
On
On
On
STMicroelectronics and GlobalFoundries to advance FD-SOI ecosystem with new 300mm manufacturing facility in
On
Pierre Barnabé succeeds Paul Boudre as CEO
On
Post-closing events
Acquisition of the remaining 20% of Dolphin Design
On
Sustainability report release
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H1’23 results will be commented during an analyst and investor conference call to be held in English on
The live webcast and slide presentation will be available on:
https://channel.royalcast.com/landingpage/soitec/20221124_1/
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Agenda
Q3’23 revenue is due to be published on
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Disclaimer
This document is provided by
The Company’s business operations and financial position are described in the Company’s 2021-2022 Universal Registration Document (which notably includes the 2021-2022 Annual Financial Report) which was filed on
Your attention is drawn to the risk factors described in Chapter 2.1 of the Company’s 2021-2022 Universal Registration Document.
This document contains summary information and should be read in conjunction with the 2021-2022 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 of the Universal Registration Document may have an impact on these forward-looking statements. In addition, the future consequences of geopolitical conflicts, in particular the
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. In addition, the occurrence of any of the risks described in Chapter 2.1 of the Universal Registration Document may have an impact on these forward-looking statements.
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
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About
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For more information, please visit www.soitec.com and follow us on Twitter: @Soitec_EN
Investor Relations: investors@soitec.com | Media contacts: +33 6 42 37 54 17 isabelle.laurent@oprgfinancial.fr +33 6 14 08 29 81 fabrice.baron@oprgfinancial.fr |
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Consolidated financial statements in appendix include:
- H1’23 consolidated income statement
- Balance sheet at
September 30 th, 2022 - H1’23 consolidated cash-flows
Consolidated financial statements for H1’23
As previously reported, Soitec’s refocus on Electronics operations decided in
Consolidated income statement
H1’23 | H1’22 | |
(Euro millions) | (ended | (ended |
Revenue | 471 | 373 |
Cost of sales | (303) | (242) |
Gross profit | 168 | 131 |
Sales and marketing expenses | (8) | (7) |
Research and development expenses | (29) | (28) |
General and administrative expenses | (20) | (22) |
Current operating income | 110 | 75 |
Other operating income / (expenses) | 0 | 9 |
Operating income | 110 | 85 |
Financial income | 4 | 3 |
Financial expenses | (7) | (8) |
Financial income / (expense) | (2) | (5) |
Profit before tax | 108 | 80 |
Income tax | (13) | (6) |
Net profit from continuing operations | 95 | 74 |
Net loss from discontinued operations | 0 | (0) |
Consolidated net profit | 95 | 74 |
Non-controlling interests | - | - |
Net profit, Group share | 95 | 74 |
Basic earnings per share (in €) | 2.72 | 2.23 |
Diluted earnings per share (in €) | 2.65 | 2.14 |
Number of shares | 35,001,682 | 33,311,866 |
Number of diluted shares | 36,951,749 | 36,680,990 |
Balance sheet at
Assets | ||
(Euro millions) | ||
Non-current assets: | ||
Intangible assets | 115 | 108 |
Property, plant and equipment | 648 | 562 |
Non-current financial assets | 17 | 17 |
Other non-current assets | 22 | 19 |
Deferred tax assets | 73 | 64 |
Total non-current assets | 875 | 770 |
Current assets: | ||
Inventories | 192 | 143 |
Trade receivables | 279 | 280 |
Other current assets | 80 | 62 |
Current financial assets | 4 | 4 |
Cash and cash equivalents | 743 | 728 |
Total current assets | 1,298 | 1,216 |
Total assets | 2,173 | 1,986 |
Equity and liabilities | ||
(Euro millions) | ||
Equity: | ||
Share capital | 71 | 70 |
Share premium | 229 | 230 |
Reserves and retained earnings | 849 | 747 |
Other reserves | 33 | (3) |
Equity, Group Share | 1,181 | 1,044 |
Total equity | 1,181 | 1,044 |
Non-current liabilities: | ||
Long-term financial debt | 530 | 518 |
Provisions and other non-current liabilities | 84 | 79 |
Total non-current liabilities | 614 | 597 |
Current liabilities: | ||
Short-term financial debt | 100 | 68 |
Trade payables | 117 | 101 |
Provisions and other current liabilities | 160 | 177 |
Total current liabilities | 377 | 346 |
Total equity and liabilities | 2,173 | 1,986 |
Consolidated cash-flows
H1’23 | H1’22 | |
(Euro millions) | (ended | (ended |
Consolidated net profit | 95 | 74 |
of which continuing operations | 95 | 74 |
Depreciation and amortization expense | 50 | 37 |
Impairment / (depreciation reversals) of assets | - | (10) |
Provisions / (reversals of provisions), net | 5 | (0) |
Provisions / (reversal of provisions) for retirement benefit obligations, net | 1 | 1 |
Income tax | 13 | 6 |
Financial expense | 2 | 5 |
Share-based payments | 9 | 11 |
Other non-cash items | (8) | 14 |
EBITDA2 | 167 | 137 |
of which continuing operations | 167 | 137 |
Increase / (decrease) in cash relating to: | ||
Inventories | (39) | (37) |
Trade receivables | 28 | (19) |
Other receivables | (15) | (19) |
Trade payables | 4 | 7 |
Other liabilities | (3) | (13) |
Income tax paid | (15) | 3 |
Change in working capital and income tax paid | (41) | (79) |
of which continuing operations | (41) | (79) |
Net cash generated by operating activities | 126 | 58 |
of which continuing operations | 126 | 59 |
H1’23 | H1’22 | |
(Euro millions) | (ended | (ended |
Net cash generated by operating activities | 126 | 58 |
of which continuing operations | 126 | 59 |
Purchases of intangible assets | (20) | (13) |
Purchases of property, plant and equipment | (97) | (85) |
Acquisition of a subsidiary, net of cash acquired | - | (1) |
(Acquisitions) and disposals of financial assets | (3) | (2) |
Net cash used in investing activities (1) | (120) | (101) |
of which continuing operations (1) | (120) | (101) |
Loans and drawdowns on credit lines | 10 | 3 |
Repayment of borrowings (including leases) | (26) | (13) |
Interest paid | (3) | (2) |
Financing flows related to discontinued operations | (0) | (2) |
Net cash used in financing activities | (17) | (13) |
of which continuing operations | (17) | (11) |
Effects of exchange rate fluctuations | 26 | 1 |
Change in net cash | 15 | (54) |
of which continuing operations | 15 | (53) |
Cash at beginning of the period | 728 | 644 |
Cash at end of the period | 743 | 590 |
(1) According to IFRS, the cash used in investing activities is calculated net of investments financed through leasing, which accounted for
1 The EBITDA represents operating income (EBIT) 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. This alternative indicator of performance is a non-IFRS quantitative measure used to measure the company’s ability to generate cash from its operating activities. EBITDA is not defined by an IFRS standard and must not be considered an alternative to any other financial indicator.
2 EBITDA margin = EBITDA from continuing operations / Revenue.
3 Review procedures were completed and the review report is in the process of being issued.
4 The scope effect related to the acquisition of NOVASiC, the closing of which took place on
5 The net cash position represents cash and cash equivalents less financial debt, a positive net cash position meaning cash and cash equivalents are higher than financial debt. A net debt position meaning cash and cash equivalents are lower than financial debt.
Attachment
- SOITEC PR H1'23 results VA_published
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