Slide 1: H1’25 Results
H1’25 Results November 21st, 2024
Slide 2: Disclaimer
DISCLAIMER This document is provided by Soitec (the “Company”) for information purposes only. The Company’s business operations and financial position are described in the Company’s 2023-2024 Universal Registration Document (which notably includes the 2023-2024 Annual Financial Report) which was fil
Slide 3: Agenda
AGENDA #01 #02 H1’25 H1’25 HIGHLIGHTS FINANCIALS Q&A © Soitec 2024. No copying or distribution permitted. PAGE 3
Slide 4: H1’25 Highlights
H1’25 HIGHLIGHTS 1 H1’25 HIGHLIGHTS 2 © Soitec 2024. No copying or distribution permitted. PAGE 4
Slide 5: H1’25 Key Figures
H1’25 KEY FIGURES H1’25 IN LINE WITH OUR EXPECTATIONS – RESILIENT EBITDA MARGIN AND STRENGTHENING OPERATING CASH FLOW REVENUE EBITDA(2) OPERATING CASH FLOW -15% 33% 33% Y/Y organic margin margin growth(1) €401M €132M €338M €113M €129M €45M H1’24 H1’25 H1’24 H1’25 H1’24 H1’25 (1) At constant exchange
Slide 6: H1’25 Revenue in Line with Our Expectations
H1’25 REVENUE IN LINE WITH OUR EXPECTATIONS Q2’25 SIGNIFICANT SEQUENTIAL REBOUND: +89% Q/Q MOBILE COMMUNICATIONS AUTOMOTIVE & INDUSTRIAL EDGE & CLOUD AI €258M -32% -20% +57% Y/Y organic Y/Y organic Y/Y organic growth(1) growth(1) growth(1) €172M 169 €107M 124 €75M €59M €68M ~x2.5 61 H1 Q/Q organic g
Slide 7: Mobile Communications Division
MOBILE COMMUNICATIONS DIVISION MOBILE COMMUNICATIONS CURRENT STATUS & SHORT- TERM DYNAMICS MID & LONG-TERM AMBITIONS SMARTPHONE MARKET TO GROW LOW-SINGLE DIGIT IN 2024 & 2025 5G & Wi-Fi TO PROGRESS STEADILY – 6G TO ENTER MARKET ~2030 5G TO CONTINUE TO INCREASE MODESTLY (~MID 60% CURRENTLY) CONTENT G
Slide 8: Mobile Communications Division Comprehensive Product Portfolio
MOBILE COMMUNICATIONS DIVISION RF-SOI COMPREHENSIVE PRODUCT PORTFOLIO embedded in 100% of 5G smartphones TO CONVERGE THE CONNECTIVITY 5G CONNECTIVITY ENHANCEMENT BATTERY POWER SAVING AND INTELLIGENCE REVOLUTIONS OPTIMIZED FOOTPRINT WITH RFFE INTEGRATION 5G FD-SOI 4G / 5G Wi-Fi & 6G SUB- Sub-6GHz mmW
Slide 9: Mobile Communications Division Content Opportunity
~40mm2 MOBILE COMMUNICATIONS DIVISION CONTENT OPPORTUNITY ~50mm2 High-end smartphones Connect RF-SOI Connect FD-SOI >180mm2 Connect POI ~30mm2 ~70mm2 ~10mm2 ~50mm2 ~30mm2 ~60mm2 4G 5G Wi-Fi TOTAL 5G Filters 5G Wi-Fi 6/6E/7 TOTAL Sub-6GHz Sub-6GHz Sub-6GHz mmWave & UWB FY21 TOWARD FY26 1 H1’25 HIGHLI
Slide 10: Automotive & Industrial Division
AUTOMOTIVE & INDUSTRIAL DIVISION AUTOMOTIVE & INDUSTRIAL CURRENT STATUS & SHORT- TERM DYNAMICS MID & LONG-TERM AMBITIONS LIGHT VEHICLE VOLUMES: 2024 SLIGHTLY DOWN / 2025 SLIGHTLY UP LIGHT VEHICLE VOLUMES TO GROW AT ~1% CAGR TOWARD 2030 AUTOMOTIVE SEMI CONDUCTOR GROWTH: ~5% IN 2024 / >10% IN 2025 EV
Slide 11: Automotive & Industrial Division Comprehensive Product Portfolio
AUTOMOTIVE & INDUSTRIAL DIVISION POWER-SOI COMPREHENSIVE PRODUCT PORTFOLIO Enables superior performance over bulk silicon TO ENABLE THE AUTOMOTIVE >10% SYSTEM COST REDUCTION & EFFICIENCY IMPROVEMENT HIGHER ROBUSTNESS, NOISE IMMUNITY AND OPERATING TEMPERATURE DIGITAL AND ELECTRIC REVOLUTION >40X SMAL
Slide 12: Automotive & Industrial Division Content Opportunity
AUTOMOTIVE & INDUSTRIAL DIVISION 2,000 - 2,500 250 - CONTENT OPPORTUNITY 550mm2 mm2 High-end cars ~125mm2 Auto Power-SOI 125 - Auto FD-SOI 250mm2 Auto SmartSiCTM 55mm2 ~1,300mm2 60 - 100mm2 65mm2 80 - 340 - 160mm2 460mm2 ~50mm2 ~160mm2 ~85mm2 Powertrain Infotainment ADAS TOTAL Powertrain Infotainmen
Slide 13: Edge & Cloud AI Division
EDGE & CLOUD AI DIVISION EDGE & CLOUD AI CURRENT STATUS & SHORT- TERM DYNAMICS MID & LONG-TERM AMBITIONS EDGE AI: STRONG MOMENTUM SUPPORTING ROADMAP AND CUSTOMERS CAPACITY INVESTMENTS EDGE AI HARDWARE MARKET SET TO GROW ~5x BY 2033 CLOUD AI: CONTINUED INVESTMENT IN CLOUD AI INFRASTRUCTURE TO SUSTAIN
Slide 14: Edge & Cloud AI Division Product Portfolio
EDGE & CLOUD AI DIVISION A COMPREHENSIVE PRODUCT PORTFOLIO TO ENABLE AI AT THE EDGE AND IN THE CLOUD FD-SOI CLOUD AI Crossover MCUs, connected MCUs, scalable FPGAs High speed integrated connections LOWER ACTIVE POWER CONSUMPTION - ALWAYS ON PERFORMANCE ON DEMAND ROBUST ENERGY HARVESTING ‘ZERO POWER’
Slide 15: Photonics-SOI to Sustain Growth in Optical Interconnects
EDGE & CLOUD AI DIVISION PHOTONICS-SOI TO SUSTAIN GROWTH IN OPTICAL INTERCONNECTS CURRENT AI / ML INFRASTRUCTURE FUTURE AI / ML INFRASTRUCTURE IS BANDWIDTH x DISTANCE LIMITED AS A MULTI-LAYERED NETWORK WITHIN TODAY DECADE PLUGGABLE TRANSCEIVERS CO-PACKAGED OPTICS FOR DATA CENTERS Data Center Interco
Slide 16: Silicon Photonics Penetration Higher Bandwidth / Lower Power
OPTICAL I/O FOR GPU INTERCONNECTS LOWER LATENCY AND 30% REDUCTION IN ENERGY CONSUMPTION TOP VIEW CROSS VIEW EMPOWERING AI ACCELERATION WITH OPTICAL I/O GPU INTERCONNECTS OPTICAL I/O Optics ASIC Interposer Copper Fiber Substrate ASIC Board ENHANCED IMPROVED ENERGY REAL-TIME HIGHER BRANDWIDTH / LOWER
Slide 17: We Continue to Deploy Our Sustainable Value Creation Model
WE CONTINUE TO DEPLOY OUR SUSTAINABLE VALUE CREATION MODEL SUSTAINABLE INNOVATION INCLUSIVE AND INSPIRING INDUSTRY-LEADING GOVERNANCE AND OPERATIONS COMPANY CULTURE PRACTICES & STANDARDS WATER MANAGEMENT DIVERSITY ETHICS Women among Soitec employees Employees having completed the Water consumption p
Slide 18: H1’25 Financials
H1’25 FINANCIALS 1 2 H 1’25 FIN A N C IA LS © Soitec 2024. No copying or distribution permitted. PAGE 18
Slide 19: H1’25 Financial Highlights
H1’25 FINANCIAL HIGHLIGHTS P&L CASH FLOW BALANCE SHEET €338M SALES €129M OPERATING CASH FLOW(1) €1.5B EQUITY -15% Y/Y at constant FX rate vs €45M in H1’24 Stable vs end of March 2024 33.4% EBITDA(1)(2) MARGIN €120M CAPEX (3) €696M CASH POSITION +0.4 pts vs H1’24 vs €138M in H1’24 Stable vs end of Ma
Slide 20: Revenue in Line with Expectations, Different Dynamics Across End Markets
REVENUE IN LINE WITH EXPECTATIONS DIFFERENT DYNAMICS ACROSS END MARKETS %Change % Change €M H1’25 H1’24 at constant FX 32% as reported and scope Edge & Mobile Cloud AI 172 258 -33% -32% Communications €338M 51% Automotive Mobile 59 75 -21% -20% 17% Communications & Industrial Automotive Edge & Cloud
Slide 21: 30% Gross Margin in the Context of Lower Revenue
30% GROSS MARGIN IN THE CONTEXT OF LOWER REVENUE 38.0% Gross margin (%) 37.6% 35.6% 36.0% Gross profit (€M) 35.2% 33.8% 31.8% 32.2% 32.5% 30.4% 30.0% GROSS MARGIN TAILWINDS • Robust industrial performance with agility in resource allocation among plants • Efficient cost management • Subsidies 235 18
Slide 22: Resilient EBITDA Margin at 33.4%
RESILIENT EBITDA MARGIN AT 33.4% STRICT COST CONTROL WHILE MAINTAINING INVESTMENT IN R&D €M H1’25 H1’24 Change Revenue 338 401 -16% Current operating margin decrease from Gross profit 101 144 -30% 21.3% to 8.2% Net R&D expenses (43) (34) +26% as a % of revenue 12.6% 8.4% • Lower gross margin SG&A ex
Slide 23: Significant Improvement in Cash Flow Generation
SIGNIFICANT IMPROVEMENT IN CASH FLOW GENERATION €M H1’25 H1’24 POSITIVE FREE CASH FLOW AT +€35M EBITDA(1) 113 132 Change in working capital 27 (69) Lower EBITDA offset by strong improvement of - Incl. inventories (65) (65) working capital and lower tax paid - Incl. trade receivables 130 106 - Incl.
Slide 24: Very Sound Balance Sheet Maintained
VERY SOUND BALANCE SHEET MAINTAINED ASSETS - in €M 30 Sept 2024 31 March 2024 LIABILITIES AND EQUITY - in €M 30 Sept 2024 31 March 2024 Non-current assets 1,211 1,220 Equity 1,491 1,495 Financial debt 747 747 Current assets 635 764 Provisions and other non- 78 79 current liabilities Cash and cash eq
Slide 25: Net Debt Maintained at a Low Level
NET DEBT MAINTAINED AT A LOW LEVEL, IN LINE WITH MARCH 24 €M 129 (94) (39) (51) 16 (49) (15) March 31, 2024 Net cash generated Net cash used in Leases Other (CB, FX, var & Dolphin Design Sept 30, 2024 Net Debt by operating investing activities other debt) Net Debt activities 1 2 H 1’25 FIN A N C IA
Slide 26: FY25 Outlook
FY25 OUTLOOK FY25 STABLE REVENUE CONFIRMED FY25 EBITDA MARGIN(1) EXPECTED ~35% FY25 CAPEX ADJUSTED DOWN TO ~90% BACKLOG / CONTRACT COVERAGE SUPPORTED BY RESILIENT H1’25 ~€230M Mobile Communications H2’25 EBITDA MARGIN IMPROVEMENT DRIVERS • Adjusted to customer demand for SOI and • Smartphone market
Slide 27: CEO Wrap-Up
CEO WRAP-UP H1’25 performance in line with Different dynamics across our end Growth fundamentals driven by expectations; FY25 Revenue and markets expected in CY 2025: technology leadership, strengthening EBITDA(1) guidance confirmed Smartphone market recovery to continue, SOI positioning, expansion
Slide 28: Thank You
y, THANK YOU
Slide 29: Appendix
APPENDIX © Soitec 2024. No copying or distribution permitted. PAGE 29
Slide 30: Balance Sheet
ASSETS - in €M 30 Sept 2024 31 March 2024 LIABILITIES AND EQUITY - in €M 30 Sept 2024 31 March 2024 BALANCE SHEET Intangible assets 126 156 Total equity 1,491 1,495 Tangible assets 953 913 Long-term financial debt 678 669 Other non-current assets 71 89 Provisions and other non- 78 79 current liabili