Hello, and welcome to the FY 'twenty two Q1 Sales Call. My name is Rosie, and I'll be your coordinator for today's event. Please note this call is being recorded and for the duration, your lines will be on listen only. However, you will have the opportunity to ask questions at the end. I will now hand you over to your host, Paul Buter, Swytek's CEO, to begin today's conference.
Thank you.
Thank you, operator, and welcome to Swytek conference call dedicated to the publications Of the Q1 revenue of our fiscal year 2022. This is the quarter covering the period from the 1st April to the end of June 2021. I am Paul Boot, Sueztech's CEO. Together with me on this call are Leah Alsang, our CFO and Steve Baburek, our Investor Relations Officer. So as usual, we will briefly comment on our sales performance and after that we will open the floor to questions.
So let's go straight to our Q1 2022 revenue performance. In line with our expectations, we had a very solid Start of our fiscal year 2022. As a reminder, we are targeting for around 40% organic growth in fiscal year 2022 And around $950,000,000 Thanks to this strong Q1 2022 performance, we are fully on track To deliver our full year 2020 2 guidance. Indeed, we achieved revenue of €180,000,000 in Q1 2022. Revenue was up 59% on a reported basis over Q1 2021 including a 10% negative currency impact.
So this represents a 69% growth excluding currency impact. On a sequential basis, it represents a 1% growth excluding currency impact over Q4 2021, Which was our 2nd highest quarter ever. Overall, Q1 2022 is our 4th consecutive Quarter of sequential organic growth since the low point achieved in fiscal year Q1 2021 in the middle of the COVID crisis. So this strong performance shows how we benefit quarter after quarter from strong tractions across our 3 end markets As we define in our Capital Markets Day last month. In Mobile Communications, sales were boosted by the Ongoing adoptions of 5 gs and the increasing number of 5 gs smartphones.
As you know, this is benefiting Both our RF SOI and our POI wafers performance was also driven by the further recovery experienced by the automotive market, Which benefits in particular our power SOI products and FD SOI. Last but not least, Smart devices also continued to expand supporting our sales of image or SOI, FD SOI and Photonics SOI wafers. If we now comment our Q1 figures by wafer diameters. Starting with 150, 200 millimeter which recorded sales of €79,000,000 If we compare to Q1 last year, this is an increase of 24% excluding currency effects. This performance reflects higher volumes especially from Bernards Re in France As well as higher volumes outsourced to SimGui, our partner in China.
This very strong rebound is explained by Sales of power SOIs were much higher than in Q1 2021, thanks to the rebound in the automotive market. We see here the confirmations of the ongoing recovery of the automotive industry that had already started in Q4 2021. In addition, we had another strong search in 150 millimeter POI wafers for RF filters. Thanks to the ongoing capacity increase at our Berenbergen 3 facility and the good ramp up in productions. Quarter after quarter, we have been able to respond to the increasing demand for POI.
As you know, this is driven by the need for 4 gs and 5 gs smartphones to cope With an increased number of frequency bands, which translates into higher number of filters and the requirement for enhanced performance. Finally sales of our FSOI 200 millimeter were stable compared to Q1 last year. If we now look at our 300 millimeter business, which recorded sales of €96,000,000 in Q1, 2022. This is 2.5 times higher than in Q1 2021 excluding currency effects. This is mainly due to a sharp volume increase.
All our product lines for 300 millimeters grew strongly in Q1. The level of RF SOI 300 millimeter sales has been booming. Tractions for more RF SOI content comes from the need for more switches, More antenna tuners and more low noise amplifiers in new generations of 5 gs smartphones. We also achieved another strong quarter in FDSOI at a much higher level than in Q1 2021. This confirms the rebound that we started to experience in Q3.
Fabless Companies continue to strengthen their ADSOI based offering For applications dedicated to edge computing, automotive and 5 gs. So regarding image or SOI for 3 d sensing applications, Sales were also much higher than in Q1 2021 at a level pretty close to Q4 2021. Finally, sales Of Photonics SOI for data centers were higher than in Q1 2021 as well as than in Q4 2021. Finally, our other revenues went up from €5,000,000 in Q1 2021 to €5,400,000 in Q1 2022. This represents a 12% growth at constant exchange rate, which was essentially due to another good performance achieved by Dolphin Design.
So to conclude this opening remarks, I would like to reconfirm our guidance for fiscal year 2022 As well as the medium term outlook that we outlined last month during our CMD. Regarding fiscal year 2022, we confirm We continue to expect fiscal year 2022 sales to reach around $950,000,000 around 40% growth at constant exchange rate. And we also confirm that our EBITDA margin will reach around 32% in fiscal year 2022. Regarding our 5 years outlook, We expect that our innovative wafers will efficiently support the advance of 5 gs, The development of artificial intelligence and the stronger focus on energy efficiency, which will be the 3 driving factors of the electronics market in the years to Market growth will be driven by multiple waves of technological change that will shape a more connected, energy efficient And Smart World. This will translate into a 2.54 increase of our addressable markets by fiscal year 2025, 2026, Meaning that we see our addressable markets moving from around 3,000,000 wafers today to more than 7,000,000 in 5 years.
We expect growth to materialize in each one of our 3 end markets, mobile communications, automotive and industry And smart devices involving further growth in our existing SOI and POI products, but also the development of new SiC product And to a lesser extent, GaN products. To fully capture this growth potential, we aim to double Our annual capacity to more than 4,000,000 wafers by fiscal year 2026. This involves the ramping up of our Singapore facility, Further expansions of our other existing capacity, Mandeep Barden II, Barden III and CIM GRI. And finally, the building up Of a new 150, 200 millimeter SiC facility as well another 300 millimeter SOI facility. All these investments will require a CapEx spend worth €1,100,000,000 over the next 5 years.
Our fiscal year 2026 targets includes the to triple our revenue to reach approximately $2,000,000,000 And to increase our EBITDA margins to around 35% based on the euro dollar rate of 1.2. So this ends our opening remarks, and we are now ready to take your questions.
Thank You will be advised when to go ahead. And the first question comes from the line of Alexander Peterk from Susquehannaal. Please go ahead.
Yes, good morning, and thanks for taking my question. First one, we just generally, if you could comment Where was the growth strongest across your business lines or across end markets versus your original Going into the quarter, so where did you see the biggest delta or jumping in demand versus what you thought things would shape up as? Secondly, if you could comment a little bit on the fill rate of your Singapore fab, where we are now in terms of Dexfab ramping up. And if you could give us any progress report on silicon carbide, is there anything new there? And maybe a quick Comment on the new management appointment for this business line.
Thanks a lot.
Thank you. Thank you for the question. So maybe going back to the first questions, which is about where do we see the most aggressive First of all, I will say that it came as no surprise that it is across all products for us. So we were expecting this and It's really happening. Now if we want to dig one level down, I mean, growth has been driven Number 1, mobile, that's for sure, and then automotive and third, smart devices.
So This is clearly that exactly what we were expecting. And so no surprise, and we were exactly preparing our capacity to be able To respond to this. In terms of the Sangapu ramp, I mean, you are absolutely correct. This is Very important for us to execute well this ramp and it's moving ahead. I mean, clearly, We are every week tools coming in, and you understand that our growth year It's really supported by our capacity expansions that we are materializing every day in burner 3 in Bernat, 2 in Singapore.
So the CapEx, I just maybe want to remember The CapEx that we have engaged this year, we are talking about an overall number of EUR 240,000,000. 50% of the CapEx is dedicated to Singapore. So this is a strong Commitment, best balance for 25% of this number and 25% for the others. Regarding your questions on silicon carbide, I mean, the project is moving ahead. I mean, we continue to monitor the progress.
And yes, we have been extremely pleased to celebrate the arrival of Emmanuel Stavodadiers, We joined the Soitech executive team management to really To drive this project, this Emmanuel is obviously a perfect fit for Soetec to drive Our smart kit silicon carbide project and concrete on new markets, Emmanuel has the intimacy with our local ecosystem and our Worldwide to lead this development. And I think we will get more informations as I said During the by the end of our fiscal year on this project.
Thank you very much.
The next question comes from the line of David O'Connor from Exane BNP Paribas. Please go ahead.
Great. Good morning and thanks for taking my questions. Congratulations on the quite the strong results. Maybe, Paul, firstly, on going back to the $950,000,000 revenue target for this year. Can you give us any color on how much of that is already booked?
And then secondly, in terms of the visibility, Has the visibility improved in terms of duration of contracts within customers? Thank you.
Yes. So to answer your first questions regarding the $950,000,000 I mean, It's all booked. I mean, we have no room for surprises here. Now when it comes to visibility, what it is very important is that we have now Extended visibility, I will say, compared to what happened over the last 5 years. I mean, now our customers are engaging discussions for Multi years contract, they want to basically secure their capacity.
And I used to say that we are very pleased with that. We are obviously making sure that we have all the commitments because Attached to that our capacity increase. So we are very, very serious, but very pleased to see that Visibility is coming for the next 2 to 3 years and for some customers we are even talking about longer term.
Excellent. That's quite helpful. Thank you. And maybe if I could squeeze in one more follow on. Just on inventories, how would you characterize your current inventory levels within the supply chain?
Thank you.
Yes, it's very difficult to answer these questions in a precise manner, but across the board it's very tight And the inventory, I mean, it's very, very healthy, very, very healthy.
Thanks so much.
The next question comes from the line of Arun Viswanathan from JPMorgan. Please go ahead. Yes.
Hi, good morning. Thanks for letting me on. I have a couple of questions, Paul. The first one is on your fiscal year 2022 guidance. You've guided for 40% constant currency revenue growth for this year.
But if I look at the end market unit growth assumptions over the past couple of months, They have been coming down. So smartphone growth assumptions have come down from 10% to mid single digit. Auto The unit growth assumptions have come down from mid teens to low teens. So how does that stack up versus your fiscal year 2022 guidance? Are you comfortable on delivering the 40% guidance.
Do you think this will be driven by restocking demand even if end demand is not as strong? My second question is on FDSOI. So you've been talking about a recovery in FDSOI sales over the past few quarters. Can you provide more color on how much recovery have you seen, any quantitative color? And do you still expect a significant step up in growth going into the second half of this year?
And then finally, on the POI business, can you Give us the status of the capacity ramp at the Burnham C fab. Thank you.
Yes. So regarding fiscal year 2022, yes, we stick with our guidance And we have no reason to change this today. I mean, clearly, the market to us is very, very healthy. And Here and there you see a little bit of probably a change, but the high single digit that we the global reborn in 20 1,000,000 including €5,000,000 to €550,000,000 unit 5 gs phones. This is still what we are driving and There is no change in this.
But automotive is also coming extremely strong with double digit global rebound For Cars in 2021, and we have to obviously address this and respond to that. So no change in our fiscal year 2022 guidance as I said. I mean, we have clearly a strong commitment from our customers On our activities. Regarding the FBSOI recovery, Yes, I told you exactly that we were last year that we were expecting to see this rebound coming in this current fiscal year. It started a little bit earlier and we continue to see a quarter after quarter improvement and we will continue to see quarter after quarter Improvement in FDSOI.
I mean clearly the end market He's driving he's using and driving the growth of this technology. It happens in the automotive. I mean, clearly, this is Today, one of the number one market for FD SOI. And we see IoT going into edge computing. The other part of the growth will come probably towards the end of this fiscal year for us, beginning of next fiscal year In a more aggressive way for DH Computing.
Finally, On POI, I mean, we do not really give a number. The ramp up is exactly as expected. And we have the target to reach 750,000 wafers at full capacity. So we are really Working on our plan and executing our plan.
Thanks, Paul.
The next question comes from the line of Sebastian Stavowicz from Kepler Cheuvreux. Please go ahead.
Yes. Hello, everyone, and thanks for taking my question. You mentioned a strong increase on POI in Q1. Can you help us Understand a little bit the size of the business, the POI business today. And also, have you made any progress during the quarter regarding qualification of Other RF players on top of Qualcomm that you're ramping up right now?
That would be the first question. The second one It's regarding the speculation in the market that Intel could be looking to acquire Global Foundry going forward, do you see any potential implication to your business or your relationship with GlobalFoundry, any positive or negative? Thank you.
The first question is, I mean clearly you know that PoI wafers have been designed with 2 low super thermal stability, Our job and within the 20 grid multiplexers. So obviously the adoptions for 5 gs smartphone filters This is really driving the ramp in Berenice Re. So Qualcomm is our number one lead customers. But as I told you, I mean, we have now multiple customers at different phases in manufacturing and in qualifications Sorry, in qualifications. So what I said during the previous talk is that by the end of this calendar year, we will have Multiple customers' call and ramping in on this product.
Regarding Intel and GlobalFoundry, I mean, clearly no comments on this time being. You just consider that this is a reverse and we do not want to talk about reverse. And You know both are soitec customers and both are using SOI. So this is all good news.
And just one last, if I may. On the silicon carbide, you have all your milestones. Have you passed certain milestones already? Or this is more Back in loading in this year and you will have a need, I would say, an answer on your ability to service market at the very end of the fiscal year, just to understand the progression.
It's really throughout the year and clearly the news we have got this quarter is Clearly in line with our expectations, we have now new samples being shipped to our customers to evaluate Some of the progress we are making and clearly the process is in line with our plan right now. As I said, we are structuring also this Project and with the arrival of Emmanuel Sabonadea, it will also take another dimension.
Okay. Thank you.
The next question comes from the line of Didier Skouma from Bank of America. Please go ahead.
Yes, morning, Paul. Thanks for taking my question. Most good questions have already been asked and answered. I just wondered if you could maybe just give us your sense of what's going on in the supply chain in Asia, most Particularly the lockdowns in Malaysia or any other parts of Southeast Asia, if that's having any impact or if you're worried about Contraction of supply chains or anything like that? And I've got a quick follow-up.
Thank you.
So, no, I mean, yes, I think that what you see happening is exactly what we have seen happening over the last 18 months. So I think that our supply chain is now basically, I won't say totally used to, but We have built many capabilities to work into this to work through this type of situations. Clearly, what is important to us is to secure our capacity ramp. We are working with all the equipments manufacturers to make sure that we are slotting our equipments properly, I mean, over the next 2 years. We are also giving them a lot of visibility because this is important.
Same for our supply chain in terms of materials. So It's clearly, I mean, a lot of work that is being pushed to our procurement team, but this is exactly what we have to do to secure the growth and to secure the ramp.
Got it. Thank you. Medium term question perhaps On the CapEx funding, I mean, would you consider taking sort of external Sort of money, maybe from customers or anything like that, that would help you accelerate the ramp up of your capacity?
So maybe I can answer the first questions and Lea, if you want to take a little bit more on these questions. What I want to say is that when we seal a deal with our customers today, we are obviously looking at this long term contracts and it takes with firm purchase order take or pay type of purchase orders. It takes Also sometimes upfront deposit when we have to do specific, I would say capacity increase for given customers. So we are using all the tools to secure The long term agreement that we have to sign with our customers. Lea, do you want to take more on this?
Yes. And maybe more generally, we are able to finance our CapEx plan, Thanks to our cash position and thanks to the cash we will generate through operating cash flows in the Next few years.
Thank you. Thank you.
The next question comes from the line of Robert Sanders from Deutsche Bank. Please go
ahead. Yes. Hi, good morning. Thanks for taking my question. I have 2.
The first one is just can you talk a bit about the fab expansions at your key customers, such as in Singapore, U. S, Germany, As well as the government led expansions by the EU, Japan, China, U. S. I mean, for example, there's a discussion about a new twelve FDX line in Europe with involvement from STMicro, and you just met Thierry Breton. Could these plans be incremental to the troubling of Sales outlined at the CMD.
And the second question, Paul, just ahead of this AGM next week, can I just check What's the process and when we should hear about the extension of your term as CEO? Because I think your term expires next year, but I think it's just a formality. But I wanted to check when we would like you to hear about that. Thank you.
Okay. So let me Comment on the first one. Yes, semiconductor actuality is very is on the frontline right now and You have heard about the alliance that Thierry Breton is pushing to Europe. You have heard about This morning about the communications between France and Germany on And Semiconductor, so it is very important that everybody understand today that there is It's an inflection point for Europe and Semiconductor. And the good news is that there is A process that is being put in place right now for the industry to share what we see and what We would like to see, if you look at the ambitions that Europe is claiming today, there is an ambition in technology, There is an ambition in industrial capacity and there is an ambition To support financially this journey in Europe.
If you think about Soitech, we have an ambition in technology, we want to support and drive the growth in digital and power applications And also telecommunications and communications. So, LBSOI as you know is one of critical Point for us in terms of supporting a roadmap that goes from 22 nanometer in Europe today to 18, Then 12 and 10 and below 10 nanometers. So I think it's important to drive these Inflection points to set the vision and to do it with our Partners, customers and suppliers in Europe makes a lot of sense and I think this is good directions. Regarding my basically your second questions regarding my renewal, I mean, nothing to report as you said at the moment. We have just announced a 5 year strategic plan with the Board, And I am personally committed to ensure that we will be implementing and or existing this strategic plan, but it's on.
Thanks.
Before we go to the next question, if I can just remind everyone, if you do have a question, you can press star 1 on your telephone keypad. And the next question comes from the line of Emmanuel Natur from ODDO. Please go ahead.
Hello, everyone. Sorry, Paul and Lia, but I joined later the conference call. Maybe you already talked about that. But Have you given any colors about volumes and pricing contributions to your Q1 sales growth? That's my first question.
And second, is Surytec part of the Transform Consortium for silicon carbide in Europe, if yes, can you come back on it?
Okay. So on the first questions, The growth and the revenue growth comes from volumes, okay. We have not seen yet any other impact. Okay. So that's very clear for us.
It's driven by volumes. And regarding your The second question is on Transform. Yes, we are obviously a key part of this project and program in Europe. It's obviously silicon carbide driven with all our partners, and we are a key element of this program.
Is that an exclusive relation with Transform or not at all?
For us, I mean it's a platform, right. I mean So we are opening up with multiple partners for this on these platforms and it's a development platform. So we obviously will be exposed to Many partners in this project, which is great.
Okay. I understand.
Thank you.
We have no further questions coming through. So I will now hand back to Paul for any closing remarks.
Thank you, operators, and thank you all for your questions. So my I would like to add maybe that the next date In our agenda will be our AGM on the 28th July and the publications of our Q222 2022 revenue on the 20th Of October after market close. So this ends our call for today and thank you for your attention and I'm looking forward to Talking to you again soon. Thank you all. Thank you.
Thank you everyone for joining today's conference. You may now disconnect.