Mr. Gervais Jacques reports

5N PLUS REPORTS 2023 FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS

5N Plus Inc. has released its financial results for the fourth quarter of fiscal 2023 (Q4 2023) and fiscal year (FY 2023) ended Dec. 31, 2023. All amounts in this news release are expressed in U.S. dollars unless otherwise stated.

"For FY 2023, we delivered record reported adjusted EBITDA and significant margin expansion, while sustaining a strong backlog (1). Our performance across these key performance indicators is proof that our strategy -- focused on commercial excellence, value-added products and long-term partnerships -- is delivering tangible results, while also enabling us to provide increased visibility on our near-term growth path.

"Records are made to be broken and it is our objective to do just that in the coming years. We are confident in our approach and, as reflected in our guidance for 2024 and 2025, we expect to be able to keep levelling up our performance. We will continue to leverage our unique position as a trusted partner for ultrahigh-purity specialty semiconductors and performance materials, and to capitalize on growing demand in critical end-markets like terrestrial renewable energy and space solar power," said Gervais Jacques, president and chief executive officer of 5N Plus.

Q4 2023 highlights:

• Revenue in Q4 2023 reached $65.1-million, compared with $61.0-million for the same period last year. The 7-per-cent 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 with a net loss of $8.1-million in Q4 2022. Net earnings in FY 2023 were $15.4-million, compared with a net loss of $23.0-million in FY 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in Q4 2023 was $9.0-million, a 35-per-cent increase over the $6.7-million for the same period last year. Adjusted EBITDA was $38.3-million in FY 2023, a 28-per-cent increase compared with $30.0-million in FY 2022.
• Adjusted gross margin in FY 2023 was 29.0 per cent, compared with 23.7 per cent in FY 2022.
• On Dec. 31, 2023, the backlog represented 292 days of annualized revenue, eight 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.
• Net debt (1) was $73.8-million as at Dec. 31, 2023, compared with $78.3-million as at Dec. 31, 2022.

(1) These measures are not recognized measures under IFRS (international financial reporting standards) and do not have standardized meanings prescribed by IFRS and therefore may not be comparable with similar measures presented by other companies.

Outlook

In specialty semiconductors, 5N Plus continues to benefit from its unique position as the leading global supplier of ultra-high purity semiconductor compounds outside China, with extensive expertise and a favourable global footprint resulting in a reliable supply chain. The company's products can be found in a wide range of technologies used in critical applications and everyday products.

Growing demand remains the rule in specialty semiconductors end-markets, particularly in terrestrial renewable energy and space solar power. This positions 5N Plus well to capitalize on future opportunities in these high-growth sectors, as well as other markets, including defence, security and medical imaging, and through its long-term partnerships with key customers.

Management expects growth in the performance materials segment to be primarily derived from health and pharmaceutical products, which provide high profitability and predictable cash flows. Additional long-term opportunities are expected to stem from product expansion or development initiatives, including through partnerships.

Furthermore, management continues to seek opportunities to increase operational efficiency, while exploring potential acquisitions and partnerships to enhance its own organic growth and leadership market position.

With the visibility afforded to management as a result of the solid execution of its business strategy over the last few years, its improved product mix and strong backlog, management is committed to sustaining its trajectory with respect to adjusted EBITDA growth and margin improvements. To that end, management is maintaining its previously disclosed projected adjusted EBITDA range for FY 2024 to be between $45-million and $50-million and expects adjusted EBITDA for FY 2025 to be between $50-million and $55-million, supported by organic growth.

To meet these objectives, 5N Plus will continue to execute on its value-added focused strategy and commercial excellence program, leveraging its competitive advantages stemming from its unique positioning both from a geographic and expertise standpoint. As a trusted partner in the development and manufacturing of critical specialty semiconductors and performance materials with a customer-centric mentality, the company will also continue methodically investing in its production capacity to serve high-growth markets and strategic global customers.

Conference call

5N+ will host a conference call on Wednesday, Feb. 28, 2024, at 8 a.m. Eastern Time, to discuss fourth quarter and annual results for fiscal 2023. All interested parties are invited to participate in the live broadcast on the company's website.

To participate in the conference call, dial one of the following numbers.

Toronto area:  416-764-8659

Toll-free:  1-888-664-6392

Enter access code:  94847778

A replay of the conference call will be available two hours after the event and until March 6, 2024. To access the recording, please dial 1-888-390-0541 and enter access code 847778.

About 5N Plus Inc.

5N Plus is a leading global producer of specialty semiconductors and performance materials. The company's ultrapure materials often form the core element of its customers' products. These customers rely on 5N Plus's products to enable performance and sustainability in their own products. 5N Plus deploys a range of proprietary and proven technologies to develop and manufacture its products. The company's products enable various applications in several key industries, including renewable energy, security, space, pharmaceutical, medical imaging and industrial. Headquartered in Montreal, Que., 5N Plus operates R&D (research and development), manufacturing and commercial centres in strategically located facilities around the world, including Europe, North America and Asia.

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