5N Plus

Release Highlights:

• 5N Plus Inc. has renewed its supply agreement with First Solar, Inc., significantly increasing its supply of cadmium telluride (CdTe) semiconductor materials by 50% over the next two years to support the manufacturing of thin-film photovoltaic (PV) solar modules.
• 5N+ has invested in its Montréal and Eisenhüttenstadt facilities to boost semiconductor compound production capacity and recycling capabilities. This investment enables the company to meet the increased demand and expand its semiconductor product portfolio in collaboration with First Solar.
• The extended partnership supports First Solar’s goal of reaching 25 gigawatts of nameplate capacity by 2026. It includes ongoing collaboration on developing and supplying renewable energy products to enhance cadmium telluride thin-film technology.

Release Highlights:

• 5N Plus has announced that the nominees listed in its Management Information Circular dated April 1, 2024 were elected as directors of 5N Plus at its Annual General Meeting of Shareholders
• The directors have re-appointed Mr. Luc Bertrand Chairman of the Board.
• PricewaterhouseCoopers LLP, Chartered Professional Accountants, was reappointed as independent auditor of 5N Plus until the close of the next annual general meeting of Shareholders, and the directors were authorized to fix the remuneration of the auditor.

Report Highlights:

• Revenue in Q1 2024 increased by 18% to USD 65.0 million, compared to USD 55.3 million in Q1 2023, primarily driven by strong growth from terrestrial renewable energy and space solar power sectors under Specialty Semiconductors.
• 5N+ announced that it was awarded a grant from the U.S. Department of Defense for USD 14.4 million, to support the Company’s production facility in St. George, Utah, which manufactures germanium substrates used in solar cells for defense and commercial satellites.
• Growing demand continues to strengthen the unique position of 5N+ as the leading global supplier of ultra-high purity semiconductor compounds outside China with key customer partnerships in high-growth sectors, including sensing and medical imaging.

Release Highlights:

• 5N Plus Inc. will release its first quarter 2024 results after markets close on Monday, May 6th, 2024.
• 5N+ will be hosting a conference call, Tuesday, May 7th, 2024 with financial analysts to discuss the results of the quarter.
• The annual general meeting of shareholders will be hosted on Thursday, May 9th, 2024 at 10:00 am (EDT) in virtual format only. Link to webcast: https://meetnow.global/M7PYRGL

Release Highlights:

• 5N+ has been awarded USD 14.4M by the U.S. Department of Defense for the production of space-qualified materials in solar cells under its Defense Production Act Investment (DPAI) Program.
• This award will enable 5N+ to upgrade and increase manufacturing of high-purity, dislocation-free, electrically-uniform germanium wafers at its St. George, Utah facility over the next four years.
• As a leader in the U.S. DoD’s domestic sources of supply, 5N+ produces specialty semiconductors and performance materials which are vital for powering solar cells in commercial and national security satellites.

5N Plus Inc. announced that it is officially launching the commercialization rights for its portfolio of gallium nitride on silicon (GaN-on-Si) patents that will take semiconductors and power switching technology to the next level. These key patents can enable the rapid prototype development and first-to-market commercialization of novel vertical GaN-on-Si power devices by companies operating in the High-Power Electronics (HPE), Electric Vehicles (EV) and Artificial Intelligence (AI) server sectors.

Q4-23 and FY 2023 Highlights:

• Revenue in Q4 2023 reached $65.1 million, compared to $61.0 million for the same period last year. The 7% increase is primarily attributable to higher demand in the Specialty Semiconductors segment, offset by lower revenue in the Performance Materials segment following the strategic exit from the manufacturing of low-margin extractive and catalytic products in 2022.
• Net earnings in Q4 2023 were $2.3 million compared to a net loss of $8.1 million in Q4 2022. Net earnings in FY 2023 were $15.4 million compared to a net loss of $23.0 million in FY 2022.
• Adjusted EBITDA in Q4 2023 was $9.0 million, a 35% increase over the $6.7 million for the same period last year. Adjusted EBITDA was $38.3 million in FY 2023, a 28% increase compared to $30.0 million in FY 2022.
• Adjusted gross margin in FY 2023 was 29.0%, compared to 23.7% in FY 2022.
• On December 31, 2023, the backlog represented 292 days of annualized revenue, 8 days higher than the previous quarter and 39 days higher than the same period last year, primarily due to increasing demand in both terrestrial renewable energy and space solar power.

5N Plus Inc. (TSX:VNP) will release its fourth quarter 2023 results after markets close on Tuesday, February 27, 2024 and will host a conference call the next morning, Wednesday, February 28, 2024 with financial analysts to discuss the results.

• Wednesday, February 28, 2024 at 8:00 a.m. (ET)
• Webcast available in the “Investors Center” section of www.5nplus.com
• Dial-in: 1-888-664-6392 (toll-free) or 416-764-8659 (Canada)
• Access code: 94847778

A playback will be available two hours after the event at 1-888-390-0541, access code 847778, until March 6, 2024.

Arrowhead is updating its coverage on 5N Plus Inc. (“5N Plus”, “VNP”, or “the company”) with a fair value of CAD 4.4 per share in the low-bracket scenario and CAD 5.2 per share in the high-bracket scenario (share price on December 21, 2023: CAD 3.60), using the Discounted Cash Flow (DCF) methodology.

• VNP’s wholly owned subsidiary, AZUR SPACE Solar Power GmbH (AZUR), supplied triple junction solar cells to RayGen, an Australian solar and storage company, for its flagship power plant in Carwarp, Victoria (Australia). AZUR’s high-efficiency solar cells served as a key component for RayGen’s proprietary solar technology, enabling RayGen to provide energy on a large scale with minimal environmental impact.
• 5N Plus’ revenue came in at USD 62.9 mn in Q3 2023 as compared with USD 66.4 mn in Q3 2022, a decline of c. 5.1% on a Year-on-Year (YoY) basis. Adjusted EBITDA stood at USD 9.6 mn, showing a 5.5% YoY increase YoY, with adjusted EBITDA margin increasing to 15.3% from 13.7% in Q3 2022. It reported a net profit of USD 1.5 mn during the quarter, compared with a net loss of USD 7 mn YoY. The net debt stood at USD 78.6 mn at the end of Q3 2023, compared with USD 78.3 mn at the end of FY 2022.
• Specialty Semiconductors’ revenue stood at USD 41.8 mn in Q3 2023, compared with 32.0 mn in Q3 2022, an increase of 30.6% YoY. This increase was driven by higher demand in strategic sectors such as space solar power and terrestrial renewable energy. Adjusted EBITDA for the quarter decreased to USD 4.7 mn in Q3 2023 due to the shift in AZUR’s revenue contribution from Q3 to Q4.
• Performance Materials segment generated revenue of USD 21.2 mn, as compared with USD 34.4 mn in Q3 2022, due to the company’s strategic exit from the manufacturing of low-margin extractive and catalytic products in H2 2022 and divestiture of its Tilly, Belgium operations in Q4 2022. Adjusted EBITDA stood at USD 6.6 mn in Q3 2023, a 30% increase on a YoY basis, with adjusted EBITDA margin at 31% for the quarter as compared with 15% in Q3 2022.
• Revenue from the Americas stood at USD 30.8 mn in Q3 2023, of which USD 28.8 mn was contributed by the US operations. Revenue from Europe was at USD 23.4 mn, compared with USD 26.6 mn in Q3 2022, with Germany being the highest contributor with revenue at USD 14.7 mn for the quarter.