Elmos Semiconductor (ELG) investor relations material

Strategic priorities and growth outlook

• Targets EUR 1 billion in sales by 2030, supported by over EUR 3.3 billion in lifetime design wins and a 16% sales CAGR from 2021–2025, with a balanced portfolio across SDV, safety, sensing, lighting, and motor control.

• Growth is driven by rising semiconductor content per vehicle, electrification, ADAS, zonal architectures, and software-defined vehicles, aiming for ~12% CAGR through 2030.

• Expands into adjacent markets such as robotics and cybersecurity, leveraging automotive expertise for long-term growth beyond 2030.

• Strong presence in China and India, with localized operations, operational independence, and rapid revenue growth, supporting resilience and market access.

• Market share gains attributed to outperforming peers and exposure to faster-growing sub-segments.

Innovation, technology, and operational excellence

• R&D efficiency improved by up to 30% year-over-year, with a global network of 500 engineers and a leading patent portfolio filing rate of ~1 per working day.

• Leadership in ultrasonic ICs, smart eFuse controllers, quantum random number generators, and advances in edge intelligence for automotive cybersecurity and SDV platforms.

• Transition to a fabless model reduced CapEx ratio by 70%, enabling scalable, capital-light growth and operational flexibility.

• Operational improvements include 25% reduction in test time, 50% tape-and-reel efficiency gains, and 20% lower inventory intensity, with enhanced supply chain resilience via regional hubs in Asia.

• Quality and reliability remain core differentiators, supporting premium positioning and customer trust.

Financial performance and capital allocation

• Confirms 2030 targets: EUR 1 billion sales, ~25% EBIT margin, ~6% CapEx ratio, and ~17% free cash flow margin, with upgrades to CapEx and FCF guidance since CMD 2024.

• Outperformed peers in sales growth, margins, and shareholder returns from 2021–2025, with a 353% share price increase and 384% total shareholder return.

• Implements a new capital allocation policy, doubling total payout for FY 2025 and projecting up to EUR 95 million payout for FY 2026 via dividends and buybacks.

• Tax rate structurally reduced to ~21% by 2030 through corporate restructuring and global earnings optimization.

• Structural reduction in CapEx and working capital, with inventory normalization and operational efficiency driving higher cash generation.