MEMSCAP: 2024 Earnings

RESILIENT PROFITABILITY MODEL CONFIRMED DESPITE A CHALLENGING ECONOMIC ENVIRONMENT

2024 ADJUSTED EBITDA¹: €2,148K (17.0% OF REVENUE)

2024 NET PROFIT: €1,374K (10.9% OF REVENUE)

GROUP EQUITY UP 3.4% TO €18,270K VS. PRIOR YEAR

STRONG VISIBILITY AND SOLID ORDER BACKLOG IN AEROSPACE FOR 2025

SUCCESSFUL COMPLETION OF TECHNICAL TESTS AND MAJOR MILESTONES IN THE "ENGINE CONTROL" PROGRAM, SUPPORTING PROFITABLE GROWTH TARGETS OF THE 4G PLAN FOR 2026

INVESTOR WEBINAR MONDAY, MARCH 31, 12:00 PM

• Proven resilient profitability model in a challenging sectoral environment
• Audited annual revenue of €12,660 thousand, in line with previous quarterly publications, down 10% despite significant growth from MEMSCAP's top four clients. This decline follows a 51% increase in consolidated sales in 2023, resulting in a particularly high comparison base.
• Net profit of €1,374 thousand for FY 2024 (10.9% of revenue)
• Adjusted EBITDA¹ for FY 2024 to €2,148 thousand (17.0% of revenue)
• Available cash of €5,452 thousand as of December 31, 2024, after the near-completion of the share buyback program (€478 thousand out of the €500 thousand planned)
• Net available cash (excluding lease liabilities) of €5,426 thousand as of December 31, 2024
• Strong visibility in the aerospace sector for 2025
• Investor webinar: Monday, March 31, 12:00 p.m.

Registration link: https://app.livestorm.co/euroland-corporate/memscap-webinaire-actionnaires?s=38fbe7eb-9004-4c2e-a655-39667f178ab1

Regulatory News:

MEMSCAP (Euronext Paris: MEMS), leading provider of high-accuracy, high-stability pressure sensor solutions for the aerospace and medical markets using MEMS technology (Micro Electro Mechanical Systems), today announced its earnings for the 2024 financial year ending December 31, 2024.

Consolidated revenue analysis

In line with previous quarterly publications, the Group's audited revenue for the fiscal year 2024 amounted to €12,660 thousand, compared to €14,073 thousand for the fiscal year 2023. The breakdown of consolidated revenue from continuing operations by business sector for the fiscal year 2024 is as follows:

Market segments Revenue (In thousands of euros)	2023	2023 (%)	2024	2024 (%)
Aerospace	8,801	63%	8,195	65%
Medical	3,589	26%	3,147	25%
Optical communications	1,555	11%	1,237	10%
Others (Royalties from licensed trademarks)	128	1%	81	1%
Total revenue from continuing operations	14,073	100%	12,660	100%

(Any apparent discrepancies in totals are due to rounding.)

The revenue from continuing operations for the fiscal year 2024 decreased by -10.0% in euros and -9.9% in U.S. dollars compared to the fiscal year 2023, following a +51% growth recorded in the previous year, which created a particularly challenging base effect. It is important to note that sales denominated in U.S. dollars accounted for approximately 66% of the consolidated revenue from continuing operations in 2024.

The Group's activities evolved in a challenging sectoral environment, with the aerospace industry facing significant tensions within supply chains. Aerospace sales amounted to €8,195 thousand (-€606 thousand -6.9% vs. 2023). In the Group's largest business segment (64.7% of consolidated sales in 2024), demand remained strong across both civil and military sectors. However, supply chains struggled to keep pace, with disruptions and delays affecting various industry players. Following a growth-driven first half of the year, these disruptions impacted the Group's sales in H2 2024. While the Group's major clients remained aligned with their targets and posted significant growth, these industry-wide challenges weighed heavily on smaller customers.

Medical segment sales amounted to €3,147 thousand (-€442 thousand -12.3% vs. 2023), accounting for 24.9% of the Group's consolidated revenue in 2024. The decline in medical activities was entirely attributable to the sharp drop in revenues from implantable solutions.

The optical communications division recorded €1,237 thousand in revenue (-€318 thousand -20.5% vs. 2023), representing 9.8% of the Group's consolidated sales in 2024. This niche market is characterized by high volatility, driven by fiber optic investments in Asia, particularly in China. Thanks to its fabless business model, this segment remains a profitability driver for the Group, regardless of market fluctuations.

Royalties from licensed trademarks amounted to €81 thousand for the fiscal year 2024.

Presentation of the consolidated income statement

The Group's consolidated income statement for the fiscal year 2024 is as follows:

In thousands of euros	2023	2024
Revenue from continuing operations	14,073	12,660
Cost of revenue	(8,033)	(7,638)
Gross margin	6,040	5,022
% of revenue	42.9%	39.7%
Operating expenses	(3,563)	(3 850)
Operating profit (loss)	2,477	1,172
Financial profit (loss)	(304)	226
Income tax expense	(33)	(24)
Net profit (loss)	2,140	1,374

(Financial data were subject to an audit by the Group's statutory auditors who will issue their reports at a later date. On March 27^th, 2025, the MEMSCAP's board of directors authorized the release of the FY 2024 consolidated financial statements. Any apparent discrepancies in totals are due to rounding.)
* Net of research development grants.

The gross margin for the fiscal year 2024 amounted to €5,022 thousand, bringing the annual gross margin rate to 39.7% of consolidated revenue, compared to 42.9% in the previous fiscal year, a direct result of lower business volume year-on-year.

Operating expenses, net of research and development grants, amounted to €3,850 thousand, compared to €3,563 thousand in 2023. Research and development expenses, net of grants, totalled €1,434 thousand in 2024, a level similar to the previous year, and primarily included developments related to new generations of aerospace and medical products. Research and development expenses before grants accounted for 14.4% of consolidated revenue (2023: 11.0%). As part of the Group's business evolution and structuring, selling and administrative expenses increased by +23.0% and +5.5%, respectively, in 2024 compared to 2023.

The Group's average full-time equivalent workforce increased from 54.5 employees in 2023 to 59.6 employees in 2024, reflecting a +9.4% growth.

For the fiscal year 2024, operating profit stood at €1,172 thousand (9.3% of revenue), compared to €2,477 thousand (17.6% of revenue) in 2023. The financial result, a net financial gain of €226 thousand in 2024 (2023: Net financial loss of €304 thousand), included a foreign exchange gain of €165 thousand (2023: Foreign exchange loss of €234 thousand). The tax expense recognized for both fiscal years 2024 and 2023 corresponded to deferred tax asset variations and had no impact on the Group's cash flow.

As a result, the Group reported a net profit of €1,374 thousand (10.9% of revenue) for the fiscal year 2024, compared to a net profit of €2,140 thousand (15.2% of revenue) for the fiscal year 2023.

Evolution of the Group's cash Consolidated shareholders' equity

The adjusted EBITDA¹ from continuing operations for the fiscal year 2024 amounted to €2,148 thousand (17.0% of revenue), compared to €3,263 thousand (23.2% of revenue) for the fiscal year 2023. It should be noted that research and development expenses were fully recorded as operating expenses and were not capitalized in the Group's balance sheet for both fiscal years 2024 and 2023.

As of December 31, 2024, the Group had available cash of €5,452 thousand (December 31, 2023: €6,237 thousand), including cash and financial investments recorded as other non-current financial assets. The increase in inventory levels during 2024, amounting to €1,182 thousand and primarily resulting from a less dynamic second half in terms of business activity, impacted the cash position at year-end. Additionally, the Group carried out a share buyback program at the end of 2024, with a total investment of €478 thousand as of December 31, 2024.

As of December 31, 2024, the amount of financial debts and borrowings (excluding lease liabilities) stood at €26 thousand, while net cash (excluding lease liabilities) amounted to €5,426 thousand (December 31, 2023: €6,109 thousand).

As of December 31, 2024, MEMSCAP Group's shareholders' equity totalled €18,270 thousand (December 31, 2023: €17,676 thousand).

¹ Adjusted EBITDA means operating profit before depreciation, amortisation, and share-based payment charge (IFRS 2) and including foreign exchange gains/losses related to ordinary activities.

Perspectives

Despite a temporarily deteriorated sectoral environment, the fiscal year 2024 demonstrated the robustness of MEMSCAP's business model, whose foundations ensure a significant and sustainable level of profitability.

Additionally, the Group holds a strong order backlog in the aerospace sector for the fiscal year 2025.

The successful validation of technical tests and major milestones in the "Engine Control" development and industrialization program reinforces the profitable growth objectives outlined in the 4G Plan by 2026.

Shareholders and investors video conference Monday, March 31, 2025 at 12:00 p.m.
Thank you for registering and sending your questions in advance using the following link:
https://memscap.com/fr/visio/

About MEMSCAP

MEMSCAP is a leading provider MEMS based pressure sensors, best-in-class in term of precision and stability (very low drift) for two market segments: aerospace and medical.

MEMSCAP also provides variable optical attenuators (VOA) for the optical communications market.

For more information, visit our website at: www.memscap.com

MEMSCAP is listed on Euronext Paris (Euronext Paris Memscap ISIN code: FR0010298620 Ticker symbol: MEMS)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

at 31 December 2024

	31 December			31 December
	2024			2023
	€000			€000
Assets
Non-current assets
Property, plant and equipment	1 087			937
Goodwill and intangible assets	6 531			6 682
Right-of-use assets	4 657			5 354
Other non-current financial assets	1 489			1 436
Employee benefit net asset	39			1
Deferred tax asset	80			106
	13 883			14 516
Current assets
Inventories	5 032			4 054
Trade and other receivables	2 746			2 714
Prepayments	205			197
Cash and short-term deposits	3 963			4 801
	11 946			11 766
Total assets	25 829			26 282
Equity and liabilities
Equity
Issued capital	1 927			1 869
Share premium	17 972			17 972
Treasury shares	(599			(134
Retained earnings	2 520			1 095
Foreign currency translation	(3 550			(3 126
	18 270			17 676
Non-current liabilities
Lease liabilities	4 237			4 646
Interest-bearing loans and borrowings				26
Employee benefit liability	90			80
	4 327			4 752
Current liabilities
Trade and other payables	2 391			2 780
Lease liabilities	782			937
Interest-bearing loans and borrowings	26			102
Provisions	33			35
	3 232			3 854
Total liabilities	7 559			8 606
Total equity and liabilities	25 829			26 282

CONSOLIDATED STATEMENT OF INCOME

For the year ended 31 December 2024

	2024			2023
Continuing operations	€000			€000
Sales of goods and services	12 660			14 073
Revenue	12 660			14 073
Cost of sales	(7 638			(8 033
Gross profit	5 022			6 040
Other income	388			142
Research and development expenses	(1 822			(1 548
Selling and distribution costs	(985			(801
Administrative expenses	(1 431			(1 356
Operating profit (loss)	1 172			2 477
Finance costs	(173			(380
Finance income	399			76
Profit (loss) for the year from continuing operations before tax	1 398			2 173
Income tax expense	(24			(33
Profit (loss) for the year from continuing operations	1 374			2 140
Profit (loss) for the year	1 374			2 140
Earnings per share:
Basic, for profit (loss) for the year attributable to ordinary equity holders of the parent (in euros)	0.179			0.286
Diluted, for profit (loss) for the year attributable to ordinary equity holders of the parent (in euros	0.179			0.278
Basic, profit (loss) for the year from continuing operations attributable to ordinary equity holders of the parent (in euros)	0.179			0.286
Diluted, profit (loss) for the year from continuing operations attributable to ordinary equity holders of the parent (in euros)	0.179			0.278

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2024

	2024			2023
	€000			€000
Profit (loss) for the year	1 374			2 140
Items that will not be reclassified subsequently to profit or loss
Actuarial gains (losses)	28			(30
Elimination of intra-group restructuring operations				(1 195
Income tax on items that will not be reclassified to profit or loss
Total items that will not be reclassified to profit or loss	28			(1 225
Items that may be reclassified subsequently to profit or loss
Net gain (loss) on available-for-sale financial assets	59			108
Exchange differences on translation of foreign operations	(424			742
Income tax on items that may be reclassified to profit or loss
Total items that may be reclassified to profit or loss	(365			850
Other comprehensive income for the year, net of tax	(337			(375
Total comprehensive income for the year, net of tax	1 037			1 765

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2024

(In thousands of euros, except for number of shares)	Number		Issued		Share		Treasury		Retained		Foreign		Total
	of shares		capital		premium		shares		earnings		currency translation		shareholders' equity
			€000		€000		€000		€000		€000		€000
At 1 January 2023	7 476 902		1 869		17 972		(144)		(242)		(3 868)		15 587
Profit for the year									2 140				2 140
Other comprehensive income for the year, net of tax									(1 117)		742		(375)
Total comprehensive income									1 023		742		1 765
Treasury shares							10						10
Share-based payments									314				314
At 31 December 2023	7 476 902		1 869		17 972		(134)		1 095		(3 126)		17 676
At 1 January 2024	7 476 902		1 869		17 972		(134)		1 095		(3 126)		17 676
Profit for the year									1 374				1 374
Other comprehensive income for the year, net of tax									87		(424)		(337)
Total comprehensive income									1 461		(424)		1 037
Capital increase	230 000		58						(58)
Treasury shares							(465)						(465)
Share-based payments									22				22
At 31 December 2024	7 706 902		1 927		17 972		(599)		2 520		(3 550)		18 270

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2024

	2024			2023
	€000			€000
Operating activities:
Net profit (loss) for the year	1 374			2 140
Non-cash items written back:
Amortization and depreciation	790			721
Loss (capital gain) on disposal of fixed assets	4			17
Other non-financial activities	32			410
Accounts receivable	(144			(328
Inventories	(1 182			(1 598
Other debtors	(137			120
Accounts payable	(54			(163
Other liabilities	(135			433
Total net cash flows from (used in) operating activities	548			1 752
Investing activities:
Purchase of fixed assets	(206			(346
Proceeds from sale (purchase) of other non-current financial assets	14			(145
Total net cash flows from (used in) investing activities	(192			(491
Financing activities:
Repayment of borrowings	(102			(101
Payment of principal portion of lease liabilities	(620			(502
Sale (purchase) of treasury shares	(464			10
Total net cash flows from (used) in financing activities	(1 186			(593
Net foreign exchange difference	(8			(47
Increase (decrease) in net cash and cash equivalents	(838			621
Opening cash and cash equivalents balance	4 801			4 180
Closing cash and cash equivalents balance	3 963			4 801

View source version on businesswire.com: https://www.businesswire.com/news/home/20250327813148/en/

Contacts:

Yann Cousinet
Chief Financial Officer
Ph.: [phone]
[e-mail]