Slide 1: Full Year 2024 Results Presentation
Full Year 2024 Results Presentation 13 May 2025
Slide 2: Disclaimer
IQE plc Disclaimer This presentation has been prepared by IQE plc solely for information purposes and should Although IQE plc believes that the expectations, estimates and projections constituting any not be considered to be an offer or solicitation to buy, sell or subscribe for any securities, forw
Slide 3: Welcome
Welcome Mark Cubitt Executive Chair
Slide 4: Strategic Review
IQE plc Strategic Review The Board is currently conducting a comprehensive Strategic Review of IQE’s asset base The objective of the Strategic Review is to make IQE debt free with cash to invest in the refocused Group A full sale of IQE Taiwan is being prioritised alongside a potential IPO A range o
Slide 5: Introducing Jutta Meier – CEO
IQE plc Introducing Jutta Meier – CEO Proven leadership for transformation • 25+ years of industry experience in senior finance roles across leading global semiconductor companies • Joined IQE in January 2024 from Intel Corporation • Former Vice President of Finance at GlobalFoundries • Holds an MBA
Slide 6: 2024 in review
2024 in review Jutta Meier Chief Executive Officer and Chief Financial Officer
Slide 7: 2024 | Challenging landscape continued
IQE plc 2024 | Challenging landscape continued Global market conditions Macro & industry Market impacts Geopolitical shifts Technological disruption headwinds Slower than expected Softness in wireless markets, Accelerated fragmentation Accelerated AI adoption industry recovery amid weaker demand for
Slide 8: 2024 | Navigating the challenges
IQE plc 2024 | Navigating the challenges Strategic response Organisational change Extracting value from assets, reducing cost Creating an aligned and efficient organisation with structure and focusing on core operations to drive stronger operational delivery profitable growth • Initiated a comprehen
Slide 9: 2024 | Key achievements
IQE plc 2024 | Key achievements • Expanded GaN RF business in Aerospace & Security, supporting growth in satellite internet • Secured initial automotive-qualified HEMT (LEO) platforms orders • Qualified high-performance HBTs for power • Progressed capacity qualifications for amplifiers in next-gener
Slide 10: FY 2024 financial highlights
IQE plc FY 2024 financial highlights Revenue Adj. EBITDA¹ Adj. LBIT1,2 Adj. operating cashflow £’m £’m £’m £’m 8.1 15.7 115.3 118.0 4.3 6.1 4% 7% 2023 2024 2023 2024 2023 2024 2023 2024 (18.4) (20.2) 1. Adjusted EBITDA and LBIT are non-IFRS measures, may be calculated differently and therefore not d
Slide 11: FY 2024 segmental revenue
IQE plc FY 2024 segmental revenue Total Wireless Total Photonics Total CMOS++ £67.3m £49.9m £0.9m Up Down Down 25% 16% 62% year-on-year year-on-year year-on-year • Increase in GaAs sales linked to a • Softness in the 3D Sensing and • Reflects strategic rebalancing of higher penetration of Asian tele
Slide 12: FY 2024 cashflow, capex and net debt
IQE plc FY 2024 cashflow, capex and net debt Cashflow PP&E capex cashflow Adj. net debt £6.1m £11.4m £(18.8)m Adjusted operating 31 December 2024 cashflow Down CLN gross proceeds of £1.3m £0.8m £18m Net operating cashflow year-on-year received in March 2025 • Supporting the Group’s strategic • Cash
Slide 13: Net debt bridge
IQE plc Net debt bridge £10.0m £9.9m £5.0m (£3.8m) £0.0m - (£4.8m) (£2.2m) (£5.0m) (£4.2m) £6.1m Adjusted operating cashflow (£10.0m) (£6.5m) £1.3m £0.2m (£15.0m) Net operating cashflow (£3.5m) (£3.5m) (£0.5m) (£18.8m) (£20.0m) (£25.0m) IQE plc | FY 2024 Results Presentation 13
Slide 14: Cost and balance sheet management
IQE plc Cost and balance sheet management Actions taken: • £18m Convertible Loan Note Financing (gross proceeds) completed in March 2025 • Restructuring of the Group’s Executive Leadership Team • Headcount restructuring resulting in over 10% reduction • Adjusted SG&A reductions of 8% focused on disc
Slide 15: Current trading and outlook
IQE plc Current trading and outlook • Macroeconomic uncertainty continues to weight on global markets • IQE’s customer pipeline remains strong and is predicted to grow in H2 2025, driven by new product and customer engagements • There is currently no direct impact to IQE from the implementation of U
Slide 16: Summary
IQE plc Summary • Revenue and improved profitability achieved despite continued market uncertainty • Revitalised executive team and operational focus • Expanded and engaged customer base with pipeline aligned to diversification strategy • Continued optimisation of asset base and fiscal discipline St
Slide 17: Appendix
Appendix
Slide 18: Summary financials
IQE plc Summary financials £’million FY 2024 (£’m) FY 2023 (£’m) Revenue 118.0 115.3 Sales, general & administrative costs (30.0) (32.5) Impairment loss on intangible assets (3.8) - Impairment loss on trade receivables and contract assets (0.03) (1.8) Adjusted EBITDA1 8.1 4.3 Adjusted LBIT (18.4) (2
Slide 19: Adjusted income statement items
IQE plc Adjusted income statement items £’million 2024 2023 Share based payments £3.2m £2.6m Restructuring £7.6m £4.7m Wireless CGU impairment £3.1m - CEO recruitment £0.3m £0.3m CEO severance £0.4m - - CFO severance £0.5m - Gain on deemed disposal of JV (£2.4m) IQE plc | FY 2024 Results Presentatio
Slide 20: Balance sheet
IQE plc Balance sheet As at 31 December 2024 £’million FY 2024 FY 2023 Intangible assets 29.0 35.4 Property, plant & equipment 113.7 129.6 Right of use assets 42.2 37.9 Total current assets 62.2 70.7 Current liabilities* (35.6) (46.1) Bank borrowings due within 1 year - (4.2) Lease liabilities due w
Slide 21: Cashflow bridge
IQE plc Cashflow bridge £15.0m £6.1m £10.0m £4.9m £5.6m (£4.8m) £5.0m £15.4m £4.7m (£0.1m) (£3.3m) (£0.8m) - (£11.4m) (£5.0m) (£1.9m) (£1.6m) (£10.0m) (£3.5m) (£15.0m) IQE plc | FY 2024 Results Presentation 21
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