5N Plus

Highlights:

• 5N Plus Inc. held its Annual General Meeting of Shareholders and elected its proposed nominees as directors of the Company.
• Mr. Luc Bertrand was re-appointed as Chairman of the Board of Directors of 5N Plus subsequent to the Meeting.

Highlights:

• Revenue in Q1 2023 reached $55.3 million, compared to $64.4 million for the same period last year. The decrease is primarily attributable to the Company’s exit from the manufacturing of low margin extractive and catalytic products in the second half of 2022.
• Adjusted EBITDA in Q1 2023 reached $8.8 million, compared to $5.6 million for the same period last year, an increase of 56%, with Specialty Semiconductors increasing by 27% to $7.2 million, supported by higher demand, and Performance Materials increasing by 70% to $4.5 million, impacted by a more favourable product mix.
• Adjusted gross margin in Q1 2023 was 29.8%, compared to 21.9% in Q1 2022.
• On March 31, 2023, the backlog represented 306 days of annualized revenue, 53 days higher than the previous quarter and 110 days higher than the same period last year. The increase is attributable to favourable negotiations of long-term contracts.
• Net debt stood at $79.6 million on March 31, 2023, slightly higher than the $78.3 million at the end of fiscal 2022.
• On April 14, 2023, 5N Plus confirmed its role in the European Space Agency’s mission to Jupiter and NASA’s intention to employ AZUR’s solar cells in its future mission to Jupiter.
• On April 26, 2023, the Company announced its plans to increase AZUR’s production capacity by 30% over the course of 2023 and 2024, through productivity improvements, the installation of new equipment and the commissioning of co-investment equipment.

Highlights:

• 5N Plus played a key role in enabling the European Space Agency’s Juice mission to Jupiter with high-end solar cell technology from AZUR SPACE Solar Power GmbH.
• AZUR’s specific 3G28 state-of-the-art proprietary solar cell technology was selected by ESA’s engineers to cover Juice’s 85 sq. m. of solar arrays, the largest ever built for interplanetary spacecraft.
• The specific 3G28 solar cells were considered the best solar cells for their unique capacity to make solar power work in Jupiter’s dark and gloomy space, and will also be employed by NASA’s future Europa Clipper mission to Jupiter moon Europa.

Highlights:

• Arrowhead is updating its coverage on 5N Plus with a fair value bracket of CAD 4.0 to CAD 4.4 (share price on March 14, 2023: CAD 3.54) based on the Discounted Cash Flow (DCF) method.
• Despite the geo‐political uncertainties and macro‐economic challenges the company has made significant progress by executing its strategies and is now well‐positioned to capitalize on the momentum and market leadership in the sectors it operates. As a result, the revenue for the company stood at USD 264.2 mn in FY 2022, compared to USD 210.0 mn last year, a growth of 25.8% year-on-year (YoY). The strong growth for the year was primarily attributable to unprecedented demand for renewable energy in the Specialty Semiconductors segment and for pharmaceutical and health in the Performance Materials segment and strategic acquisition of AZUR. Revenue for the quarter declined by 5.4%, reaching USD 61.0 mn, compared with USD 64.5 mn in Q4 2021, majorly due to the phase out of low-margin business undertaken earlier in the year, followed by its divestiture in late December 2022.
• The commercial excellence program coupled with favorable product mix has helped the company in mitigating the negative impact of inflation on product margins thereby paving way for a 350 basis point of gross margin expansion for the quarter. The adjusted gross margin for Q4 2022 stood at 26.7% as compared to 23.2% in Q4 2021, while for the full-year, the adjusted gross margin stood at 23.7% as compared to 23.5% in FY 2021.
• Adjusted EBITDA for the full-year reached USD 30.0 mn, compared to USD 28.2 mn last year. The company expects its adjusted EBITDA to be between USD 35.0-40.0 mn for FY 2023, and USD 45.0-50.0 mn for FY 2024, given its prolonged investments in high‐growth potential opportunities, unprecedented demand in key end markets, simplified business and product mix.
• During the quarter, the company recorded a loss on divestiture of USD 7.8 mn on the winding down and divestiture of the Tilly, and USD 3.2 mn in litigation and restructuring costs.
• Despite delays due to contractor unavailability and delayed equipment deliveries, 5N Plus has completed its St-Laurent project (Montréal, Canada), which is aimed at expanding the development and manufacturing of critical and strategic minerals for advanced II-VI-based semiconductors.
• In Specialty Semiconductors segment, 5N Plus, being the sole viable global supplier outside China, of ultra‐high purity semiconductor compounds, expects that demand within the segment will majorly be driven by terrestrial renewable energy and space solar power, while in Performance Materials segment, health and pharmaceutical products continue to be the key driver in providing high profitability and consistent cash flows.
• The company has a strong outlook as it continues to focus on the right sectors to expand the segment’s product mix in attractive end markets thereby unlocking its full potential through enhanced product offering and investing in its operations to meet exceptional customer demand in the years to come.

Highlights:

• 5N Plus Inc. is pleased to announce the appointment of Ms. Blair Dickerson to its Board of Directors

Luc Bertrand, Chair of the Board of Directors of 5N Plus, said “We are thrilled with this new addition to our Board. Blair has more than two decades of experience in natural resources, communications,
public affairs and public policy work. As a seasoned strategic communicator and public policy expert,
we welcome her commitment to sustainability and depth of experience, particularly in the resource
sector.”

Highlights:

• Revenue in Q4 2022 reached $61.0 million, compared to $64.6 million for the same period last year. The decrease is primarily attributable to the phase out and divestiture of the Tilly, Belgium operations. Revenue increased by 26% to $264.2 million in FY 2022, compared to $210.0 million last year, supported by the acquisition of AZUR and higher demand for renewable energy in Specialty Semiconductors, as well as for pharmaceutical and health in Performance Materials.
• Adjusted EBITDA in Q4 2022 reached $6.7 million, compared to $10.1 million for the same period last year, due to AZUR realizing the majority of its 2021 annual Adjusted EBITDA in the months following its acquisition. Adjusted EBITDA for FY 2022 reached $30.0 million, achieving the high end of the Company’s FY 2022 guidance, compared to $28.2 million last year, despite the negative impact of the Russia/Ukraine conflict in Q1 2022, rising inflation and the winding down and divestiture of the Tilly, Belgium operations.
• In Q4 2022, the Company recorded a loss on divestiture of $7.8 million on the winding down and divestiture of the Tilly, Belgium operations completed in December 2022, as well as a $3.2 million in litigation and restructuring costs, mainly attributable to the same transaction.
• On December 31, 2022, the backlog represented 253 days of annualized revenue, 61 days higher than the previous quarter, and 32 days higher than the same period last year. The increase in the backlog is attributable to favourable negotiations of long-term contracts under Specialty Semiconductors.
• Net debt stood at $78.3 million on December 31, 2022, down from $80.1 million at the end of the prior year

Q4 2022 Highlights:

• Revenue in Q4 2022 reached $61.0 million, compared to $64.6 million for the same period last year. The decrease is primarily attributable to the divestiture of the Tilly, Belgium operations. Revenue increased by 26% to $264.2 million in FY 2022, compared to $210.0 million last year, supported by the acquisition of AZUR SPACE Solar GmbH (“AZUR”) and higher demand for renewable energy in Specialty Semiconductors, as well as for pharmaceutical and health in Performance Materials.
• Adjusted EBITDA1 in Q4 2022 reached $6.7 million, compared to $10.1 million for the same period last year, due to AZUR realizing the majority of its 2021 annual Adjusted EBITDA in the months following its acquisition. Adjusted EBITDA for FY 2022 reached $30.0 million, achieving the high end of the Company’s FY 2022 guidance, compared to $28.2 million last year, despite the negative impact of the Russia/Ukraine conflict in Q1 2022, rising inflation and the winding down and divestiture of the Tilly, Belgium operations.
• In Q4 2022, the Company recorded a loss on divestiture of $7.8 million on the winding down and subsequent divestiture of the Tilly, Belgium operations completed in December 2022, as well as $3.2 million in litigation and restructuring costs, mainly attributable to the same transaction.
• On December 31, 2022, the backlog represented 253 days of annualized revenue, 61 days higher than the previous quarter and 32 days higher than same period last year. The increase in the backlog is attributable to favourable negotiations of long‐term contracts under Specialty Semiconductors.
• Net debt stood at $78.3 million on December 31, 2022, down from $80.1 million at the end of the prior year.

Highlights:

• Arrowhead is updating coverage on 5N Plus with a fair value bracket of CAD 3.95 to CAD 4.91 (share price on November 21, 2022: CAD 2.85) based on the Discounted Cash Flow (DCF) method
• 5N Plus (VNP) continued the business momentum seen in H1 2022, despite macro‐economic and geopolitical uncertainties, the company’s disciplined and focused commercial excellence strategy yielded a revenue growth of 30.6%, reaching USD 66.3 mn, compared with USD 50.8 mn in Q3 2021. For 9M 2022, revenue increased by 39.7%, reaching USD 203.2 mn, compared with USD 145.4 mn in 9M 2021. The growth in the revenue was supported by higher demand for the Specialty Semiconductors segment, as well as pharmaceuticals, and health in the Performance Materials segment
• 5N Plus announced a historic multi-year supply agreement with renewable energy leader First Solar for the supply of semiconductor materials associated with manufacturing thin-film photovoltaic (PV) modules. The largest award until now is expected to increase 5N Plus volumes by 35% in 2023 and by more than 100% in 2024, in line with First Solar’s growth plans
• The company, during the quarter, also announced the signing of a 10-year extension of its exclusive teaming arrangement with Sierra Space through its wholly owned subsidiary AZUR SPACE Solar Power GmbH (“AZUR”). The arrangement involves the production of a new solar cell, referred to as the MWT, for use in the production of Sierra Space’s unique Space Solar Surface Mount Technology solar array systems. The incremental revenue contribution from Sierra Space to AZUR is expected to reach c. USD 10 mn in 2023 and over USD 20 mn in 2024
• The company expects the St-Laurent project (Montréal, Canada) to be completed and commissioned during Q4 2022, despite delays due to contractor unavailability and delayed equipment deliveries
• The company aims to capitalize on the segmented approach to commercial partnering and value pricing. As a result, the company expects to sustain above-double‐digit growth rates over the coming years, underpinned by strategic partnerships in the renewable energy and space sectors, supported by growing demand from North America and Europe and from medical imaging applications
• The implementation of the company’s commercial excellence program and go‐to‐market strategies is expected to continue to gain momentum under the leadership of Roland Dubois. He will not only be responsible for leading and implementing the company’s program as it focuses on value‐creating commercial partnerships with clients by sector but also ensure the successful integration of AZUR, which is the key priority of the company

Q3 2022 Highlights:

• Revenue in Q3 2022 increased by 31%, reaching $66.4 million, compared to $50.8 million for the same period last year, supported by higher demand in Specialty Semiconductors, as well as pharmaceutical and health in Performance Materials
• Adjusted EBITDA in Q3 2022 reached $9.1 million, compared to $5.5 million for the same period last year. Adjusted EBITDA increased by $2.5 million under Specialty Semiconductors and $1.7 million under Performance Materials, despite the impact of inflation, supported by a favorable product mix.
• The Company recorded an initial non‐cash impairment of $7.1 million on non‐current assets in Q3 2022 upon winding down its low‐margin lead‐based product manufacturing activities in Tilly, Belgium
• On September 30, 2022, the backlog represented 192 days of annualized revenue, 52 days higher than the previous quarter. The increase in the backlog is attributable to favorable negotiations of long‐term contracts under Specialty Semiconductors, confirming the near‐term growth potential in renewable energy and space applications
• Net debt stood at $83.3 million on September 30, 2022, down from $89.6 million at the end of last quarter
• On September 29, 2022, 5N Plus announced it had successfully renewed and increased its multi‐year agreement with First Solar for the supply of semiconductor materials associated with the manufacturing of thin‐film photovoltaic (PV) modules. It is the largest award to date and expected to increase 5N Plus volumes by 35% in 2023 and by more than 100% in 2024, in line with First Solar’s own growth plans