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X-FAB Silicon Foundries SE | Press Release October 6, 2022
Regulated information
Further financial impact of arbitration
proceedings with a supplier
Tessenderlo, Belgium – October 6, 2022, 06.00 p.m. CEST – Publication of inside information pursuant to Article 17 of the
Market Abuse Regulation
As reported in the second quarter results release dated July 28, 2022 and in the half-year report published on
September 6, 2022, X-FAB recorded a provision in its condensed consolidated financial statements totaling
USD 13.8 million in the second quarter of 2022 for expenses relating to interest payments to be paid to a
supplier and for associated legal fees. The provision was required as a consequence of an arbitration decision
concerning a trade dispute with a supplier for the supply of materials.
Following additional final clarification by the arbitrator, and contrary to X-FAB’s initial interpretation of the
arbitration award, it has now become clear that the supplier is not obliged to supply the disputed materials in
return for the further USD 36.8 million that was paid to the supplier in the third quarter based on the
arbitration award. This will have a one-off negative impact of USD 36.8 million on the third quarter’s
operating profit (EBIT) and EBITDA, since this further expense was not recorded as an expense in the short-
term earnings guidance previously provided in the second quarter results release. Accordingly that guidance
for earnings and cash flows is lowered by the amount of this one-off additional expense of USD 36.8 million.
X-FAB will provide more detailed information on the financial results of the third quarter on October 27, 2022
as part of its regular financial reporting.
The full impact of the arbitration has now been accounted for. The dispute relates to the years 2019 and
2020 and does not affect X-FAB’s positive long-term business outlook and guidance.