SOITEC REPORTS FIRST HALF RESULTS OF FISCAL YEAR 2021
- Sales of €254m, stable at constant exchange rates and perimeter1
- Electronics EBITDA2 margin3 slightly up at 30.4% of sales, in line with FY’21 guidance
- Very strong Electronics net operating cash flow at €102m
- FY’21 sales still expected to be stable at constant exchange rates and perimeter1 and FY’21 Electronics EBITDA2 margin3 confirmed around 30%
- FY’21 planned CAPEX increased to around 135m€
- FY’22 sales now expected above
$900m / €800m based on €/$ exchange rate of 1.13.
Bernin (Grenoble),
the first half of fiscal year 2021 (period ended on
The recent signing of a couple of strategic supply agreements, one with Qualcomm regarding POI substrates for their new generation of RF filters, and another one with GlobalFoundries regarding RF-SOI wafers for their most advanced solutions for smartphones RF front-end-modules, provides strong evidence that we are increasingly well positioned to lead the opportunities created by the advent of 5G market.
On the strength of the growing adoption of our innovative engineered substrates and thanks to the continuous and compelling dedication of our teams in the context of the Covid-19 situation,
Stable revenue and sustained level of EBITDA2 margin3
Consolidated income statement (part 1)
(Euros millions) | H1’21 | H1’20 | % change |
Sales | 254.4 | 258.5 | -2% |
Gross profit | 77.4 | 87.4 | -11% |
As a % of sales | 30.4% | 33.8% | |
Research and development expenses | (17.5) | (16.0) | +10% |
Selling, general and administrative expenses | (22.7) | (20.2) | +13% |
Current operating income | 37.2 | 51.3 | -28% |
As a % of sales | 14.6% | 19.9% | |
Electronics EBITDA2 (continuing operations) | 77.3 | 78.1 | -1% |
As a % of sales | 30.4% | 30.2% |
Consolidated sales reached 254.4 million Euros in H1’21, down 1.6% compared with H1’20. This is the result of a 0.4% decline at constant exchange rates and perimeter1, a negative currency impact of -1.3% and a scope effect of +0.1% which is related to the acquisition of EpiGaN in
- 150/200-mm wafer sales reached
138.4 million Euros , up 14% on a reported basis and up 15% at constant exchange rates. They represent 57% of total wafer sales. Sales increase essentially reflects a more favorable product mix as a result of the sustained growth achieved in 200-mm RF-SOI wafer sales dedicated to radiofrequency applications for smartphones which was partially offset by lower sales of Power-SOI as a result of the difficulties met by the automotive market in the context of the Covid-19. Combined with the early stage of the ramp-up in sales of 150-mm POI (Piezoelectric-on-Insulator) wafers for RF filters, 150/200-mm wafer sales also benefitted from a slight increase in volumes.
- 300-mm wafer sales amounted to
105.1 million Euros , representing a 16% decrease on a reported basis and a 15% decline at constant exchange rates. Decline in sales essentially reflects a decrease in volumes. 300-mm RF-SOI wafer sales remained at a high level and continued to be supported by the still growing 4G market as well as the deployment of first generations of 5G smartphones. In the meantime, sales of FD-SOI wafers came significantly lower than last year despite intense design and tape-out activities for applications related to 5G, Edge-Computing and Automotive. Sales of other 300-mm products (Imager-SOI for 3D applications for smartphones and Photonics-SOI wafers for data centers) were robust.
- Total Royalties and other revenues decreased from
11.7 million Euros in H1’20 to10.8 million Euros in H1’21, including8.5 million Euros in sales generated by Frec|n|sys, Dolphin Design and EpiGaN.
Gross profit reached
Current operating income declined from
- Net R&D costs increased from
16.0 million Euros in H1’20 to17.5 million Euros in H1’21. This increase essentially reflects slightly higher gross R&D Expenses, driven in particular by higher depreciation and labor costs, as well as lower prototype sales, which were partially offset by slightly higher subsidies and research tax credits.
- Selling, general and administrative (SG&A) expenses went up from
20.2 million Euros in H1’20 to22.7 million Euros in H1’21, essentially reflecting an increase in costs related to employee compensation schemes (higher number of staff and employee shareholding plan set up in previous fiscal years). As a percentage of sales, SG&A expenses went slightly up from 7.8% in H1’20 to 8.9% in H1’21.
The EBITDA2 from continuing operations (Electronics) amounted to
Depreciation and amortization expenses went up from
Consolidated income statement (part 2)
(Euros millions) | H1’21 | H1’20 | % change |
Current operating income | 37.2 | 51.3 | -28% |
Other operating income and expenses | (0.0) | 1.8 | |
Operating income | 37.1 | 53.2 | -30% |
Net financial result | (10.2) | (1.7) | |
Income tax | (4.8) | (9.9) | |
Net profit from continuing operations | 22.2 | 41.6 | -47% |
Net profit / (loss) from discontinued operations | (0.0) | (0.0) | |
Net profit | 22.2 | 41.5 | -47% |
The Group did not record any significant other operating expenses in H1’21 whereas it recorded a
The net financial result reached
Income tax amounted to
The Group’s consolidated net profit therefore amounted to
Sharp increase in operating cash flows
Consolidated cash-flows
(Euros millions) | H1’21 | H1’20 |
Continuing operations | ||
EBITDA2 | 77.3 | 78.1 |
Change in working capital | 31.2 | (27.6) |
Tax paid | (6.3) | (14.2) |
Net cash generated by / (used in) operating activities | 102.3 | 36.3 |
Net cash generated by / (used in) investing activities | (44.3) | (75.5) |
Proceeds from shareholders | 0.5 | - |
Drawing on credit lines, new loans and debt repayment (including finance leases) | 45.5 | (14.2) |
Net financial (charges) / income | (0.5) | (1.0) |
Net cash generated by / (used in) financing activities | 45.4 | (15.3) |
Impact of exchange rate fluctuations | (2.9) | (3.0) |
Net change in cash | 100.5 | (57.5) |
Discontinued operations | (0.2) | (0.7) |
Group net change in cash | 100.3 | (58.2) |
Adjusted net cash generated by / (used in) investing activities (1) | (47.8) | (82.6) |
Adjusted net cash generated by / (used in) financing activities (1) | 48.9 | (8.2) |
(1) Adjusted net cash used by investing activities include
The EBITDA2 from continuing operations (Electronics) was almost stable (-1%) at
The working capital requirements from continuing operations decreased by
As a result, thanks to the good level of cash inflow related to this decrease in working capital which compares to a cash outflow of
In H1’21, the adjusted cash out related to capital expenditure amounted to
Adjusted net cash generated by financing activities related to the continuing operations amounted to
In total, including a
Net cash used by discontinued operations reached
Overall, thanks to the high level of cash generated by operating and financing activities and despite the sustained level of investments carried out, Soitec’s cash position has increased by
Further strengthened financial position
Thanks to the solid cash generation achieved during H1’21,
Shareholders’ equity increased by
Financial debt increased from
The net debt position5 significantly improved at
Key event of H1’21
POI substrates business agreement with Qualcomm Technologies for 4G/ 5G RF filters
After multiple years of collaboration with Qualcomm Technologies,
Post-closing events
Successful issuing of a zero-coupon
On
RF-SOI wafer supply agreement with GlobalFoundries for 5G radiofrequency solutions
On
Acquisition of a further 20% stake in Dolphin Design
On
Free share allocation plan
Acknowledging the efforts made by everyone to reach the company’s targets and continue serving customers in recent months in spite of the constraints generated by the health crisis, the Board of Directors has decided during its meeting today to exceptionally allocate a free share plan to all employees. This free share allocation plan represents a maximum dilution of 0.43% of the outstanding share capital. It is based on performance criteria related to revenues, EBITDA and Total Shareholder Return (TSR) targets set for fiscal year 2022-2023.
This plan should be put in perspective with an allocation of free shares granted to 22 executives that was decided during the same Board meeting, this allocation being subject to the same performance criteria. The latter represents a maximum dilution of 0.18% of the outstanding share capital, including 0.04% for the company’s CEO.
Outlook
In addition,
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H1’21 results analyst and investor conference call to be held in English on the 19th of November at
A live webcast of the conference call will be accessible at the following address: https://channel.royalcast.com/webcast/soitec/20201119_1/
The slide presentation will be available on Soitec’s website at
The replay of the event will be available at the same address: https://channel.royalcast.com/webcast/soitec/20201119_1/ or directly from Soitec’s website.
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Agenda
Q3’21 sales are 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 2019-2020 Universal Registration Document (which notably includes the 2019-2020 Annual Financial Report). The Company’s 2019-2020 Universal Registration Document was filed with the AMF and is available on the Company’s website in both French and English versions (www.soitec.com, in section “Company - Investors - Financial Reports”).
Your attention is drawn to the risk factors described in Chapter 2.2 of the Company’s 2019-2020 Universal Registration Document
This document contains summary information and should be read in conjunction with the 2019-2020 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 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 2.2 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
About
For more information, please visit www.soitec.com and follow us on Twitter: @Soitec_EN
Investor Relations: Steve Babureck +33 6 16 38 56 27 +65 9231 9735 steve.babureck@soitec.com | Media contacts: +33 1 53 32 61 51 isabelle.laurent@oprgfinancial.fr +33 1 53 32 61 27 fabrice.baron@oprgfinancial.fr |
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Consolidated financial statements in appendix include:
- H1’21 consolidated income statement
- Balance sheet at
September 30, 2020 - H1’21 consolidated cash-flows
Consolidated financial statements for H1’21
As previously reported, Soitec’s refocus on Electronics operations decided in
Consolidated income statement
H1’21 | H1’20 | |
(Euro Millions) | (ended | (ended |
Sales | 254.4 | 258.5 |
Cost of sales | (176.9) | (171.0) |
Gross profit | 77.4 | 87.4 |
Sales and marketing expenses | (5.5) | (4.9) |
Research and development expenses | (17.5) | (16.0) |
General and administrative expenses | (17.3) | (15.3) |
Current operating income | 37.2 | 51.3 |
Other operating income / (expenses) | (0.0) | 1.8 |
Operating income | 37.1 | 53.2 |
Financial income | 0.1 | 2.3 |
Financial expenses | (10.2) | (4.0) |
Financial income / (expense) | (10.2) | (1.7) |
Profit before tax | 27.0 | 51.5 |
Income tax | (4.8) | (9.9) |
Net profit from continuing operations | 22.2 | 41.6 |
Net profit / (loss) from discontinued operations | (0.0) | (0.0) |
Consolidated net profit | 22.2 | 41.5 |
Non-controlling interests | - | - |
Net profit, Group share | 22.2 | 41.5 |
Balance sheet at
Assets | ||
(Euro Millions) | ||
Non-current assets: | ||
Total intangible assets | 91.6 | 87.5 |
Property, plant and equipment | 323.6 | 297.2 |
Non-current financial assets | 15.0 | 14.4 |
Other non-current assets | 15.1 | 9.0 |
Deferred tax assets | 37.1 | 37.2 |
Total non-current assets | 482.4 | 445.2 |
Current assets: | ||
Inventories | 144.0 | 123.3 |
Trade receivables | 112.2 | 167.4 |
Other current assets | 60.6 | 73.9 |
Current financial assets | 8.8 | 0.4 |
Cash and cash equivalents | 291.3 | 191.0 |
Total current assets | 617.0 | 556.0 |
Assets held for sale and related to discontinued operations | - | - |
Total assets | 1 099.3 | 1 001.2 |
Equity and liabilities | ||
(Euro Millions) | ||
Equity: | ||
Share capital | 66.6 | 66.6 |
Share premium | 82.4 | 82.4 |
Reserves and retained earnings | 427.0 | 395.4 |
Other reserves | 0.5 | 7.4 |
Equity, Group Share | 576.5 | 551.7 |
Total consolidated equity | 576.5 | 551.7 |
Non-current liabilities: | ||
Long-term financial debt | 253.6 | 192.5 |
Provisions and other non-current liabilities | 43.8 | 40.5 |
Total non-current liabilities | 297.4 | 233.0 |
Current liabilities: | ||
Short-term financial debt | 42.9 | 52.2 |
Trade payables | 69.5 | 76.3 |
Provisions and other current liabilities | 112.9 | 88.0 |
Total current liabilities | 225.4 | 216.5 |
Liabilities related to discontinued operations | - | - |
Total equity and liabilities | 1 099.3 | 1 001.2 |
Consolidated cash-flows
H1’21 | H1’20 | |
(Euros millions) | (ended | (ended |
Consolidated net profit / (loss) | 22.2 | 41.5 |
of which continuing operations | 22.2 | 41.6 |
Depreciation and amortization expenses | 27.4 | 19.4 |
Impairment of non-current assets and accelerated depreciation / amortization | - | - |
Provisions, net | 2.1 | (1.4) |
Provisions for retirement benefit obligations | 0.6 | (0.1) |
Income on assets disposals | 0.7 | (1.6) |
Income tax (credit) / expense | 4.8 | 9.9 |
Financial (income) / expense | 10.2 | 1.7 |
Share-based payments | 9.4 | 7.9 |
Other items | - | 0.7 |
Non-cash items related to discontinued operations | (0.1) | (0.4) |
EBITDA2 | 77.1 | 77.6 |
of which continuing operations | 77.3 | 78.1 |
Increase / (decrease) in cash relating to: | ||
Inventories | (24.2) | (47.2) |
Trade receivables | 59.5 | 20.9 |
Other receivables | 5.5 | 2.8 |
Trade payables | 0.6 | 11.7 |
Other liabilities | (10.2) | (15.8) |
Tax paid | (6.3) | (14.2) |
Change in working capital requirement and tax paid on discontinued operations | (0.0) | (0.3) |
Change in working capital and tax paid | 25.0 | (42.2) |
of which continuing operations | 24.9 | (41.8) |
Net cash generated by / (used in) operating activities | 102.1 | 35.5 |
of which continuing operations | 102.3 | 36.3 |
| H1’21 | H1’20 |
(Euro Millions) | (ended | (ended |
Net cash generated by / (used in) operating activities | 102.1 | 35.5 |
of which continuing operations | 102.3 | 36.3 |
Purchases of intangible assets | (8.9) | (12.3) |
Purchases of property, plant and equipment | (36.2) | (38.9) |
Proceeds from sales of intangible assets and property, plant and equipment | - | 1.9 |
Acquisition of a subsidiary, net of cash acquired | (1.0) | (25.5) |
(Acquisitions) and disposals of financial assets | 1.7 | (0.7) |
Flows from (investing) / divestment activities on discontinued operations | - | - |
Net cash generated by / (used in) investing activities | (44.3) | (75.5) |
of which continuing operations | (44.3) | (75.5) |
Proceeds from shareholders: capital increases | 0.5 | - |
Drawing of credit lines, new loans and finance leases | 61.7 | 1.2 |
Repayment of borrowings (including finance leases) | (16.3) | (15.5) |
Interest received | 0.1 | 0.2 |
Interest paid | (0.6) | (1.2) |
Financing flows related to discontinued operations | (0.0) | 0.0 |
Net cash generated by / (used in) financing activities | 45.4 | (15.2) |
of which continuing operations | 45.4 | (15.3) |
Effects of exchange rate fluctuations | (2.9) | (3.0) |
Change in net cash | 100.3 | (58.2) |
of which continuing operations | 100.5 | (57.5) |
Cash at beginning of the period | 191.0 | 175.3 |
Cash at end of the period | 291.3 | 117.1 |
Adjusted net cash generated by / (used in) investing activities (1) | (47.8) | (82.6) |
Adjusted net cash generated by / (used in) financing activities (1) | 48.9 | (8.2) |
(1) Adjusted net cash used by investing activities include
1 At constant exchange rates and comparable scope of consolidation; scope effect relates to the acquisition of
2 The EBITDA represents the current operating income before depreciation, amortization, non-monetary items related to share-based payments, and changes in provisions on current assets and provisions for risks and contingencies, excluding income on asset disposals. 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.
3 Electronics EBITDA margin = EBITDA from continuing operations / Sales.
4 The half-year accounts were reviewed by auditors.
5 The net debt position represents financial debt less cash and cash equivalents.
Attachment
- SOITEC PR H1'21 results
VA
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