Soitec Sa · EURONEXT:SOI
Soitec Sa — Investor Day (June 2019)
133 slides from Soitec Sa's investor day presentation, Jun 13, 2019
Slide 1: Capital Markets Day
C A P I TA L M A R K E T S D AY Paris, June 13, 2019
Slide 2: Disclaimer
Soitec Proprietary Copyright @ 2019 Soitec Disclaimer This document was prepared by Soitec (the “Company”) on June 13th, 2019 in connection with the announcement of the fiscal year 2018-2019 (“FY’19”) results. This document is provided for information purposes only. It is public information only. Th
Slide 3: Capital Markets Day – Agenda
Soitec Proprietary Copyright @ 2019 Soitec Capital Markets Day – Agenda Time Duration Speaker Content Steve Babureck - VP Corporate Development & 13h25-13h30 05min Introduction, disclaimer, agenda overview Investor Relations 13h30-14h00 30min Paul Boudre - Chief Executive Officer Soitec amazing jour
Slide 4: Soitec, an amazing journey
Soitec, an amazing journey Paul Boudre Chief Executive Officer
Slide 5: An amazing journey in the semiconductor world
Soitec Proprietary Copyright @ 2019 Soitec An amazing journey in the semiconductor world… where technology pushes boundaries Creating a standard for the mobile industry Capital Markets Day - June 13, 2019 FOCUS ON CORE BUSINESS PROFITABLE GROWTH ESTABLISH CREDIBILITY 2 0 1 5 / 2 0 1 8 / 2 0 2 1 / €2
Slide 6: Commitment met, strong fundamentals settled
Commitment met Strong fundamentals settled
Slide 7: Value creation for every Soitec stakeholder
Value creation for every Soitec Soitec Proprietary Copyright @ 2019 Soitec stakeholder large scale EMPLOYEES recruitment + 300 in 2018 High value Capital Markets Day - June 13, 2019 1,450 differentiation employees in each strategic worldwide market CUSTOMERS Share +700% VS +25% for SBF 120 over the
Slide 8: A unique competitive position in the value chain
Soitec Proprietary Copyright @ 2019 Soitec A unique competitive position in the value chain SMART CUT TM SMART Stacking TM TECHNOLOGY PROCESSED WAFER Capital Markets Day - June 13, 2019 TRANSISTOR COMPOUND EPITAXY EXPERTISE DIE CHIP BOARD ENGINEERED SUBSTRATES BULK WAFERS 8
Slide 9: Our pillars to build a unique position
Soitec Proprietary Copyright @ 2019 Soitec Our pillars to build a unique position Capital Markets Day - June 13, 2019 AGILE MANUFACTURING Make or Buy INNOVATION PLATFORMS PRODUCT LICENSING 9
Slide 10: Technology pushes boundaries
Te c h n o l o g y p u s h e s b o u n d a r i e s
Slide 11: Semiconductor engineered substrates growing into a multi-billion $ market
Semiconductor engineered substrates Soitec Proprietary Copyright @ 2019 Soitec growing into a multi-billion $ market ELECTRONIC DEVICES ADAS/EV ENGINEERED 4G/5G SUBSTRATES Capital Markets Day - June 13, 2019 SOI AloT GaN SiC Healthcare InGaNOS POI Industry 4.0 InP Si epitaxy Cloud AR/VR 11
Slide 12: Increasing engineered substrate content in strategic end-markets
Increasing engineered substrate content Soitec Proprietary Copyright @ 2019 Soitec in 4 strategic end-markets RF-SOI FD-SOI FD-SOI Capital Markets Day - June 13, 2019 POI IMAGER-SOI RF-SOI POWER-SOI SMARTPHONES IoT Internet of Things PHOTONICS-SOI FD-SOI AUTOMOTIVE CLOUD & INFRASTRUCTURE 12
Slide 13: Engineered substrate content growing across markets and applications
Engineered substrate content growing across Soitec Proprietary Copyright @ 2019 Soitec markets and applications New Market Segments Displays RF-SOI FD-SOI FD-SOI GaN RF Capital Markets Day - June 13, 2019 POI POWER-SOI IMAGER-SOI RF-SOI Power-SOI Displays POWER-SOI RF-SOI RF-SOI SMARTPHONES Sensors
Slide 14: Leadership expansion in multiple markets
Soitec Proprietary Copyright @ 2019 Soitec Soitec leadership expansion in multiple markets FY24 SAM* New products: New opportunities: ~1.6-2.4 Billion $ > 500 M$ SAM* in FY24 >1 Billion $ SAM* 4G/5G – Auto – IoT – Cloud 5G – Auto – Sensors Displays – Auto – Imaging… SOI products portfolio Beyond SOI
Slide 15: Ready to achieve our new ambition
Ready to achieve our new ambition
Slide 16: Ready to execute: Management's team
Soitec Proprietary Copyright @ 2019 Soitec R e a d y t o e x e c u t e : M a na ge m e nt ’s t e a m CUSTOMER LEGAL HUMAN GLOBAL GROUP Joséphine RESOURCES BUSINESS UNITS Calvin Chen Deege-Mansour Pascal Lobry Bernard Aspar Capital Markets Day - June 13, 2019 EXECUTIVE ADVISOR QUALITY & DATA INNOVATI
Slide 17: Ready to achieve our new ambition
Soitec Proprietary Copyright @ 2019 Soitec Ready to achieve our new ambition Establish our leadership across all engineered substrates OUTLOOK THROUGH OUR JOURNEY Capital Markets Day - June 13, 2019 2 0 1 8 / 2 0 1 9 / 2 0 2 1 / €444m +30%PCC ~ €900m* EBITDA margin 34,3% EBITDA margin ~30% EBITDA ma
Slide 18: Soitec, an amazing journey
Soitec, an amazing journey Thomas Piliszczuk EVP Strategy
Slide 19: Vision: leader in innovative semiconductor standards
“To be recognized as a leader in innovative semiconductor standards for products shaping the future”
Slide 20: Part of your daily life for almost decades
Soitec Proprietary Copyright @ 2019 Soitec Soitec has been part of your daily life for almost 3 decades Beyond 2025 in 5G mmW World 2020 + Beginning of 5G and AI 2015 + Electronics for Capital Markets Day - June 13, 2019 Since 2010 everyday use Smartphones (4G and IoT) 2000-2010 Automobile PC Indust
Slide 21: Strategic plan – our vision into action
Soitec Proprietary Copyright @ 2019 Soitec Soitec strategic plan – our vision into action Products IC Design chain IDM Capital Markets Day - June 13, 2019 Value Engineered SOI POI GaN SiC Compound semi. … substrates Bulk Materials for Semiconductors Protect core Expand core Extend into Apply flexibl
Slide 22: Four key markets & three mega-trends
22 Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec Four key markets & three mega-trends
Slide 23: 5G – (r)evolution in business & services applications
5G – (r)evolution in business Soitec Proprietary Copyright @ 2019 Soitec & services applications Enhanced mobile Low latency broadband Capital Markets Day - June 13, 2019 Massive M2M Ultra-reliability connectivity 23
Slide 24: 5G: dramatic extension of the RF spectrum
Soitec Proprietary Copyright @ 2019 Soitec 5G: dramatic extension of the RF spectrum Capital Markets Day - June 13, 2019 5G is not only about 10x larger spectrum – it is a whole New Radio (NR) system 24
Slide 25: AI is about transforming data into meaningful information
AI is about transforming data into Soitec Proprietary Copyright @ 2019 Soitec meaningful information AI Everywhere Key drivers AI Computing trend Classification Cloud computing Capital Markets Day - June 13, 2019 Object detection Edge computing Speech detection On-Device AI Data analysis 25
Slide 26: AI for IoT: new computing paradigm
Soitec Proprietary Copyright @ 2019 Soitec AI for IoT: new computing paradigm The AI / IoT era will create new industry leaders Capital Markets Day - June 13, 2019 Sources: Jefferies, NXP 26
Slide 27: Exponential growth in high voltage power applications
Soitec Proprietary Copyright @ 2019 Soitec Exponential growth in high voltage power applications High growth applications SiC and GaN (CAGR – ’17~’25) Power semiconductor forecast Capital Markets Day - June 13, 2019 Source: IHS Markit’18 27
Slide 28: Electrical vehicle: first mass market for SiC
Electrical vehicle Soitec Proprietary Copyright @ 2019 Soitec First mass market for SiC SiC vs. Silicon Performance improvement and size reduction in inverter Positioning of SiC and GaN in xEV Capital Markets Day - June 13, 2019 EV Charger Source: Yole - PowerSiC’17 From Si-IGBT based module to SiC
Slide 29: Many challenges to tackle for our customers
Soitec Proprietary Copyright @ 2019 Soitec Many challenges to tackle for our customers Energy efficiency Form factor Capital Markets Day - June 13, 2019 Communication Reliability and security Function integration Cost for mass adoption Better sensors and displays Platform roadmap 29
Slide 30: Engineered substrates allow us to push boundaries
Engineered substrates allow us Soitec Proprietary Copyright @ 2019 Soitec to push boundaries To enable new APPLICATIONS Applying unique PROCESSES Using more MATERIALS Capital Markets Day - June 13, 2019 Crystal on crystal Crystal on crystal Crystal on crystal Crystal on (lattice compatible) (lattice
Slide 31: Established leadership in engineered substrates
Established leadership Soitec Proprietary Copyright @ 2019 Soitec in engineered substrates OEMs Fabless Capital Markets Day - June 13, 2019 Foundries Design Engineered Solid core products and IP Specialty RF-SOI FD-SOI around substrates SOI Silicon-On-Insulator Bulk substrates 31
Slide 32: Expanding our leadership in engineered substrates
Expanding our leadership Soitec Proprietary Copyright @ 2019 Soitec in engineered substrates OEMs Fabless Capital Markets Day - June 13, 2019 Foundries Design Engineered Specialty Compound Developing new RF-SOI FD-SOI POI substrates SOI semi. products Bulk Beyond SOI substrates 32
Slide 33: Expanding leadership: developing our ecosystems
Expanding our leadership Soitec Proprietary Copyright @ 2019 Soitec in engineered substrates Developing our ecosystems OEMs Understanding problems all along the value chain Fabless Capital Markets Day - June 13, 2019 Foundries Design Engineered Specialty Compound RF-SOI FD-SOI POI substrates SOI sem
Slide 34: Engineered substrates content growing across markets and applications
34 Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec across markets and applications Engineered substrates content growing
Slide 35: Smartphones
Soitec Proprietary Copyright @ 2019 Soitec Smartphones 4G fueling current growth FD-SOI value proposition 3D image sensors for facial Beginning of 5G deployment recognized for several critical recognition and AR/VR. applications High res displays Imager-SOI & Compound for Capital Markets Day - June
Slide 36: Smartphones – Soitec technologies content
Soitec Proprietary Copyright @ 2019 Soitec Smartphones – Soitec technologies content 2019 2020-2022 4G LTE Advanced pro 5G sub 6GHz Front End Module LNA Switches Antenna Tuner 45mm2 30mm2 1mm2 55mm2 30mm2 8mm2 60mm2 Capital Markets Day - June 13, 2019 Front End Module RF-SOI Spec SOI POI RF-SOI Spec
Slide 37: Automotive
Soitec Proprietary Copyright @ 2019 Soitec Automotive GaN, SiC and Power-SOI FD-SOI to ramp for ADAS Engineered substrates for high to benefit from structural semi and infotainment application sensitive sensor and bright content increase processors display Power- FD-SOI for ASICs Imager/Photonics- S
Slide 38: Automotive – Soitec technologies content
Soitec Proprietary Copyright @ 2019 Soitec Automotive – Soitec technologies content 2019 2020-2022 Connected Car Smart car & EVs 100 1200 120 130 1200 40mm2 5mm2 10mm2 mm2 mm2 mm2 mm2 mm2 RF-SOI Connectivity Capital Markets Day - June 13, 2019 Power-SOI FD-SOI RF-SOI GaN/SiC Power-SOI FD-SOI RF-SOI
Slide 39: IoT
Soitec Proprietary Copyright @ 2019 Soitec IoT FD-SOI offers low power Together with 5G, FD-SOI FD-SOI offers the best value operation for industrial & InGaNOS enable AR/VR/MR proposition for edge- AI & consumer applications applications computing FD-SOI for ASICs Capital Markets Day - June 13, 2019
Slide 40: IoT – Soitec technologies content
Soitec Proprietary Copyright @ 2019 Soitec IoT – Soitec technologies content 2019 2020-2022 2022 and beyond IoT AIoT Massive AIoT 130 300 150 350 60mm2 1mm2 3mm2 4mm2 mm2 mm2 mm2 mm2 FD-SOI RF-SOI FD-SOI InGaNOS RF-SOI FD-SOI InGaNOS RF-SOI Capital Markets Day - June 13, 2019 FD-SOI FD-SOI FD-SOI GP
Slide 41: Cloud & 4G/5G infrastructure
Soitec Proprietary Copyright @ 2019 Soitec Cloud & 4G/5G infrastructure Photonics-SOI for high data rate RF-SOI, FD-SOI, GaN, SiC for 5G FD-SOI, Photonics-SOI, GaN for and low latency for 4G/5G base base station & data center hyper scale & secure computing station & data center Photonics-SOI for qua
Slide 42: Cloud & 4G/5G infrastructure – technologies content
Cloud & 4G/5G infrastructure – Soitec Soitec Proprietary Copyright @ 2019 Soitec technologies content 2019 2020-2022 2022 and beyond Data center & 4G+ Base Data center & 5G Base Hyper scale computing station station 500 400 72mm2 8000 1400 220 110 15000 8000 1500 220 110 15000 40mm2 mm2 mm2 mm2 mm2
Slide 43: Soitec technologies content 2017 vs 2022 and beyond
Soitec Proprietary Copyright @ 2019 Soitec Soitec technologies content 2017 (CMD) 2022 and beyond 120 120 20mm2 30mm2 16mm2 Smartphones mm2 mm2 RF-SOI RF-SOI FD-SOI Spec SOI POI Capital Markets Day - June 13, 2019 100 140 300 1600 Automotive 18mm2 130mm2 mm2 mm2 mm2 mm2 Power-SOI Power-SOI FD-SOI RF
Slide 44: Leadership expansion in multiple markets
Soitec Proprietary Copyright @ 2019 Soitec Soitec leadership expansion in multiple markets FY24 SAM* New products: New opportunities: ~1.6-2.4 Billion $ > 500 M$ SAM* in FY24 >1 Billion $ SAM* 4G/5G – Auto – IoT – Cloud 5G – Auto – Sensors Displays – Auto – Imaging… SOI products portfolio Beyond SOI
Slide 45: Strategy – Key points
Soitec Proprietary Copyright @ 2019 Soitec Strategy – Key points Engineered substrates are essential to drive mass adoption in key markets Soitec content increase will accelerate thanks to growing product portfolio and Capital Markets Day - June 13, 2019 unique differentiation in key applications So
Slide 46: Soitec, an amazing journey
Soitec, an amazing journey Rémy Pierre Chief Financial Officer
Slide 47: FY'19 highlights: another very strong year
Soitec Proprietary Copyright @ 2019 Soitec FY’19 highlights Another very strong year Business Operations Strategic Alliances o FY’19 sales up 42% at o Capacity expansion in sync. o Leti and Soitec launched a constant exchange rates and with customer demand new substrate innovation perimeter › Bernin
Slide 48: FY'19 highlights: M&A and financials
Soitec Proprietary Copyright @ 2019 Soitec FY’19 highlights Another very strong year M&A Financials o Acquisition of Dolphin assets: o Strong operating leverage › Soitec 60% / MBDA 40% › 37.2% gross margin (vs. 34.4% in FY’18) › Skillset to reinforce a full IP and service › 24.4% current operating m
Slide 49: FY'19 highlights: strong financial performance
Soitec Proprietary Copyright @ 2019 Soitec FY’19 highlights Strong financial performance Sharp increase in revenue Strong improvement in gross margin at constant exchange rates and perimeter 37.2% +42% as a % of sales 34.4% 165 in €m 444 107 +54% 311 Capital Markets Day - June 13, 2019 Gross profit
Slide 50: FY'19: revenue breakdown
Soitec Proprietary Copyright @ 2019 Soitec FY’19: revenue breakdown In €m Change vs FY’18 Sales breakdown % at FY’18 Q1’19 Q2’19 Q3’19 Q4’19 FY’19 constant % FX and 200mm scope 4% 200mm wafer sales 192.4 50.9 51.2 58.7 60.2 221.0 +15% +17% 1 50% 300mm 300mm wafer sales 106.3 39.3 41.3 52.8 72.3 205.
Slide 51: FY'19 gross margin at 37.2%
Soitec Proprietary Copyright @ 2019 Soitec FY’19 gross margin at 37.2% 300 o Acceleration in revenue growth over the last 38.5% semesters Gross margin 36.1% 35.4% › Mainly driven by sharp increase in 250 as % of sales 34.0% 300mm volumes 32.4% › Favorable mix and price effects 28.6% 200 27.8% o Incr
Slide 52: Strong increase in current operating income
Strong increase in current Soitec Proprietary Copyright @ 2019 Soitec operating income In €m FY’19 FY’18 Change o Net R&D expenses sharply up: › Increase in gross R&D expenses largely due Sales 443.9 310.6 +43% 1 to the integration of Dolphin › Decline in subsidies and research tax credits Gross pro
Slide 53: Net profit slightly up
Soitec Proprietary Copyright @ 2019 Soitec Net profit slightly up 1 o FY’18 other operating income was including an impairment reversal related to Bernin II for €3.8m In €m FY’19 FY’18 2 o FY’18 net financial income was including a €4.6m non recurring financial income (early repayment of a guarantee
Slide 54: Significant increase in EBITDA of continuing operations
Soitec Proprietary Copyright @ 2019 Soitec Significant increase in EBITDA of the continuing operations (Electronics) EBITDA as % of sales 34.3% 29.2% Capital Markets Day - June 13, 2019 o FY’19 EBITDA up 68% vs FY’18 15.6% 16.7% o FY’18 EBITDA was including: 152 › €2.9m resulting from one-off royalt
Slide 55: Strong cash generation from operating activities
Strong cash generation from Soitec Proprietary Copyright @ 2019 Soitec operating activities FY’19 FY’18 Continuing Discounted Continuing Discounted In €m Total Total operations operations operations operations Net profit 89.9 0.3 90.2 92.1 (5.6) 86.5 Depreciation and amortization 24.6 1 - 24.6 18.6
Slide 56: Solid increase in cash position
Soitec Proprietary Copyright @ 2019 Soitec Solid increase in cash position Net change in cash = +€55.3m +147.6 in €m +59.3 +1.0 +0.6 (32.5) 175.3 Capital Markets Day - June 13, 2019 Continuing activities 120.0 Discontinued activities Group (120.7) Cash and cash Net cash Net cash used in 2023 OCEANEs
Slide 57: A much strengthened balance sheet
Soitec Proprietary Copyright @ 2019 Soitec A much strengthened balance sheet 31 March 31 March 31 March 31 March In €m In €m 2018 2019 2018 2019 Total equity 278.6 398.3 Capital Markets Day - June 13, 2019 Intangible assets 8.2 38.5 Long-term financial debt 59.6 199.2 Tangible assets and other non c
Slide 58: A solid financial position
Soitec Proprietary Copyright @ 2019 Soitec A solid financial position 1 o Equity reinforced by €120m: Shareholders’ equity (€m) Gross debt (€m) › +€90m retained FY’19 earnings 1 2 › +€20m recognized as equity out of the €150m 2023 OCEANEs 222 bonds issue 398 › +€18m related to share-based 279 paymen
Slide 59: Guidance for FY'20
Soitec Proprietary Copyright @ 2019 Soitec Guidance for FY’20 o FY’20 sales expected to grow by around 30% at constant exchange rates and perimeter: › Sustained demand expected in RF-SOI 200mm and Power-SOI: Bernin I to operate at full capacity + Simgui outsourcing › Further growth expected in RF-30
Slide 60: Full Fab Financial Model
Soitec Proprietary Copyright @ 2019 Soitec Full Fab Financial Model o Capacity raised to: › Bernin I (200mm for RF and Power) : 950,000 wafers › Simgui (200mm for RF and Power) : 360,000 wafers › Bernin II (300mm for all products) : 1,000,000 wafers › Singapore (300mm for RF and FD) : 1,000,000 wafe
Slide 61: Soitec, an amazing journey
Soitec, an amazing journey Bernard Aspar EVP Global Business Units
Slide 62: Profitable growth driven by content increase and broader products portfolio
“Profitable growth driven by content increase and broader products portfolio”
Slide 63: Key messages: new organization for profitable growth
Soitec Proprietary Copyright @ 2019 Soitec Key messages 1 A new organization to deliver high value products and generate profitable growth 2 6 x Business Units focused on strategic end markets/applications Capital Markets Day - June 13, 2019 3 Ecosystem partnerships to benefit from market pull oppor
Slide 64: Leadership expansion in multiple markets
Soitec Proprietary Copyright @ 2019 Soitec Soitec leadership expansion in multiple markets FY24 SAM* New products: New opportunities: ~1.6-2.4 Billion $ > 500 M$ SAM* in FY24 >1 Billion $ SAM* 4G/5G – Auto – IoT – Cloud 5G – Auto – Sensors Displays – Auto – Imaging… SOI products portfolio Beyond SOI
Slide 65: A broad product portfolio of engineered substrates
A broad product portfolio of engineered Soitec Proprietary Copyright @ 2019 Soitec substrates PROCESSOR & RF CONNECTIVITY FRONT-END PIEZO-ON- SOC MODULE POWER PHOTONICS IMAGERS INSULATOR GaN FD-SOI RF-SOI Power-SOI Photonics-SOI Imager-SOI POI GaN Capital Markets Day - June 13, 2019 For power-effici
Slide 66: A complete product portfolio for handsets & base station communication
A complete product portfolio for handsets Soitec Proprietary Copyright @ 2019 Soitec & base station communication TRANSCEIVER TRANSCEIVER Antenna 5G LNA Filter Antenna Switch Tuner < 6GHz mmW < 6GHz mmW Capital Markets Day - June 13, 2019 5G HANDSET ARCHITECTURE RF- SOI FD- * SOI POI PA: Power Ampli
Slide 67: RF-SOI
67 Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec RF-SOI
Slide 68: RF-SOI: an industry standard for Front-End Module
Soitec Proprietary Copyright @ 2019 Soitec RF-SOI: an industry standard for Front-End Module (FEM) Product description Value proposition Mono-crystal 200 Silicon mm Burried Oxide Mono-crystal Top Silicon § RF-SOI is present in 100% of Trap Rich Burried Insulating smartphones Layer Layer Si02 (BOX) 3
Slide 69: Leveraging RF ecosystem
Soitec Proprietary Copyright @ 2019 Soitec Soitec leveraging RF ecosystem Foundries RF IC / FEM manufacturers Chipset makers Phone makers Switch Antenna Tuner PA Filter > 12 SOI Foundries Capital Markets Day - June 13, 2019 Infrastructure 69
Slide 70: RF-SOI growth drivers & market outlook
Soitec Proprietary Copyright @ 2019 Soitec RF-SOI growth drivers & market outlook 4GLTE advanced 5G sub 6GHz Massive MIMO Wifi and IoT <6GHz Pro and 5G Cellular RF Front-End RF Front-End RF Front-End Capital Markets Day - June 13, 2019 5G mmW RF Satellite Com Machine-to-Machine >10GHz Front-End cell
Slide 71: FD-SOI
71 Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec FD-SOI
Slide 72: FD-SOI: versatile platform to connect the unconnected
Soitec FD-SOI: Soitec Proprietary Copyright @ 2019 Soitec Ve r s a t i l e p l a t f o r m t o c o n n e c t t h e u n c o n n e c t e d Early adopters Customer requirements FD-SOI success factors Nodes RF eMeM 28nm Wide bandwidth Reduced components 5G Networks Integration 18nm RF / Digital integrat
Slide 73: FD-SOI: best trade-off to integrate digital/analog/RF
FD-SOI: best trade-off t o i n t e g r a t e Soitec Proprietary Copyright @ 2019 Soitec Digital/Analog/RF… Techno Smartphones Automotive IoT AI Networks capability Key features Core logic scalability Capital Markets Day - June 13, 2019 Energy efficiency RF transceivers <6GHz Integration Platform NRE
Slide 74: FD-SOI body bias
Soitec Proprietary Copyright @ 2019 Soitec FD-SOI body bias: leveraging substrate architecture to enable transistor performance on-demand - Dolphin Design providing IP solution to fabless to master Capital Markets Day - June 13, 2019 power management - FD-SOI body biasing deployed as main pillar 74
Slide 75: FD-SOI market
Soitec Proprietary Copyright @ 2019 Soitec FD-SOI market KEY POINTS A MULTI-MILLION WAFER MARKET § FD-SOI is a versatile platform to integrate multiple OUTLOOK FOR FY24 functions such as digital, analog, RF, high FD-SOI SAM in Million wafers (300mm eq.) Capital Markets Day - June 13, 2019 voltage…in
Slide 76: Specialty SOI
76 Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec SOI Specialty
Slide 77: Specialty SOI products
Soitec Proprietary Copyright @ 2019 Soitec Specialty SOI products POWER PHOTONICS MEMS IMAGERS Power-SOI Photonics-SOI MEMS-SOI Imager-SOI For high voltage For high perf. For advanced sensing For improved device integration photonics device imager integration into performance in Capital Markets Day
Slide 78: Specialty SOI: Smart Power
Soitec Proprietary Copyright @ 2019 Soitec Specialty SOI: SMART POWER Product Value proposition Growth drivers & outlook description Power-SOI footprint expected to rise further in HIGH RELIABILITY automotive § In-Vehicule Networking PERFORMANCE § Infotainment 200 § Excellent electrical isolation §
Slide 79: Specialty SOI: Photonics
Soitec Proprietary Copyright @ 2019 Soitec S p e c i a l t y S O I : P H O TO N I C S Product Value proposition Ecosystem & TAM description Integration platform for complex optical function Silicon photonics growth drivers: using CMOS fab § Data center traffic 200 High speed modulation compliant § O
Slide 80: Piezo-electric-on-Insulator
80 Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec Piezo- Insulator electric-on-
Slide 81: Piezo-On-Insulator to enable new generation of filters
Piezo-On-Insulator to enable Soitec Proprietary Copyright @ 2019 Soitec new generation of filters Product Growth drivers description & market outlook Among all RF devices, filters will: Mono-crystal LiTaO3 § grow the fastest with ~15-20% CAGR till 2022 Capital Markets Day - June 13, 2019 Buried Oxid
Slide 82: Piezo-On-Insulator enabling new generation of filters
Piezo-On-Insulator enabling new generation Soitec Proprietary Copyright @ 2019 Soitec of filters Value proposition Filters competitive environment Soitec value SOITEC SAW TC SAW BAW Requirements Impact proposal POI High quality factor High frequencies High quality factor Capital Markets Day - June 1
Slide 83: EpiGaN
83 Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec EpiGaN
Slide 84: External growth strategy: expand core business
External growth strategy: expand core business Soitec Proprietary Copyright @ 2019 Soitec M a y, 2 0 1 9 - S o i t e c a c q u i r e s E p i G a N t o a c c e l e r a t e e n g i n e e r e d substrates penetration in booming 5G and Power markets EpiGaN at a glance • Start-up founded in 2010 as a spi
Slide 85: GaN epi wafers: leading technology for 5G
Soitec Proprietary Copyright @ 2019 Soitec GaN epi wafers: leading technology for 5G Market outlook Capital Markets Day - June 13, 2019 EpiGaN SAM in FY24 ~300 k wafers (150mm eq.) - Cellular base stations (>5W power amplifier) GaN - becoming mainstream for 4G / 5G <6Ghz and mmW Future opportunities
Slide 86: Compounds
86 Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec Compounds
Slide 87: InGaNOS – new approach for the display market
InGaNOS – A new approach with engineered Soitec Proprietary Copyright @ 2019 Soitec substrates for a huge display market Technology Value proposition Wafer volume projection InGaNOS TAM in FY24 >4 Million wafers (150 mm) Proven technology for Better red efficiency at micrometer- InGaN red LEDs scale
Slide 88: SiC power devices
Soitec Proprietary Copyright @ 2019 Soitec SiC power devices Rapidly-growing market, driven by automotive EV Electric Vehicles Soitec positioning and value proposition Supply chain: § Enable high volumes of SiC Capital Markets Day - June 13, 2019 supply § Enable faster transition to 200 mm (limited
Slide 89: Global Business Units key messages
89 Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec Global Key Business Units messages
Slide 90: Profitable growth driven by strong product value in growing markets
Profitable growth, driven by strong product value Soitec Proprietary Copyright @ 2019 Soitec in growing markets SOI products SAM (M wafers eq. 300 mm) New products SAM (M wafers eq.150 mm) + 20% to +30% CAGR between FY19 and FY24 >1M wafers in FY24 1,4 5,0 1,2 Capital Markets Day - June 13, 2019 4,0
Slide 91: Global Business Units – Key points
Soitec Proprietary Copyright @ 2019 Soitec Global Business Units – Key points SOI core business (revenue) growing at 15-25% CAGR from FY19 to FY24 - Strong RF-SOI growth driven by continuous content increase - FD-SOI ramping through multiple applications (mobile, automobile, IoT) Capital Markets Day
Slide 92: Soitec product portfolio enables innovations for growing markets
“Soitec product portfolio strategically enables innovations required by growing and emerging markets”
Slide 93: Christophe Maleville, Chief Technology Officer
Soitec, an amazing journey Christophe Maleville C h i e f Te c h n o l o g y O f f i c e r
Slide 94: Innovation for semiconductor industry
Soitec Proprietary Copyright @ 2019 Soitec Innovation for semiconductor industry « Innovate to pioneer right materials Capital Markets Day - June 13, 2019 options to solve our customers’ challenges and create differentiation » 94
Slide 95: Innovation ecosystem at Soitec
I N N O VAT I O N E C O S Y S T E M AT S O I T E C
Slide 96: Innovation drivers and assets
Soitec Proprietary Copyright @ 2019 Soitec Innovation drivers and assets Customer Partners Capital Markets Day - June 13, 2019 Experience Innovation IP & Expertise SOITEC IN THE TOP 50 OF FRENCH PATENT APPLICANTS INPI RANKING OVER THE PAST 2 YEARS Customer/ People Market IP Competition Collaboration
Slide 97: Innovation is key in the value chain
Soitec Proprietary Copyright @ 2019 Soitec Innovation is key in the value chain SMART CUT TM SMART Stacking TM TECHNOLOGY Capital Markets Day - June 13, 2019 TRANSISTOR PROCESSED WAFER COMPOUND EPITAXY EXPERTISE DIE CHIP BOARD BULK WAFERS ENGINEERED SUBSTRATES 97
Slide 98: Innovation roadmap
INNOVATION ROADMAP spitec
Slide 99: Three main directions for innovation
Soitec Proprietary Copyright @ 2019 Soitec Three main directions for innovation More than Moore: diversification Sensors Analog/RF Passives HV Power Biochips Actuators 130nm Baseline CMOS: CPU, Memory, Logic 90nm More Moore: miniaturization Capital Markets Day - June 13, 2019 65nm 45nm 32nm 22nm 16n
Slide 100: Innovation at Soitec: new substrate technologies
Soitec Proprietary Copyright @ 2019 Soitec Innovation at Soitec: New substrate technologies ENGINEERED SUBSTRATES Anything on anything Capital Markets Day - June 13, 2019 SMART CUT TM SMART Stacking TM Device Layer: Silicon, Strained Silicon, Germanium, III-V… Buried Insulator: SiO2, ONO… Handle Sub
Slide 101: Product portfolio: addressing market growth
Soitec Proprietary Copyright @ 2019 Soitec Product portfolio: addressing market growth RF Power Processor & Photonics Imagers Piezo-on-insulator Front-End Module connectivity SoC RF-SOI Power-SOI FD-SOI Photonics-SOI Imager-SOI POI For highly efficient mobile For high voltage device integration High
Slide 102: Soitec technology
SOITEC TECHNOLOGY Revolutionary Smart Cut TM Beyond SOI Other core technologies o Compound engineered substrates o A mature technology benefiting from 25 years o New materials to support emerging markets o Core technologies for substrate engineering of innovation o Smart Cut SIC technology o Advance
Slide 103: Revolutionary Smart Cut – a mature technology
Soitec Proprietary Copyright @ 2019 Soitec Revolutionary Smart Cut™ - A mature technology o Industrial manufacturability of SOI – high yield o Re-use of donor wafer increases cost efficiency TECHNOLOGY o Drastical improvement of uniformity & quality o Flexibility of material integration 1. Initial s
Slide 104: Benefiting from years of SOI innovation
Soitec Proprietary Copyright @ 2019 Soitec Benefiting from 25 years of SOI innovation 150mm 200mm Thick 300mm silicon > 200 nm 145nm BOX +/- 15 nm 25nm BOX 10nm BOX Capital Markets Day - June 13, 2019 120 nm +/- 5 nm <10nm 88nm +/- 0.4 nm +/- 2.5 nm 12nm +/- 0.5 nm Atomic 1997 2002 2007 2012 2017 le
Slide 105: Technology beyond SOI
Soitec Proprietary Copyright @ 2019 Soitec Soitec technology beyond SOI Silicon On Sapphire GaAs on Silicon GaN on Sapphire Piezo On Insulator SiC on pSiC Ge on Silicon Capital Markets Day - June 13, 2019 InGaN On Sapphire Silicon On Quartz InP on Silicon InP On GaAs SiGe on Silicon Advanced R&D on
Slide 106: Silicon Carbide: Smart Cut technology
Soitec Proprietary Copyright @ 2019 Soitec Silicon Carbide: Smart Cut technology 1. Starting SiC B A 2. Surface prep 3. Implantation A 4. Conductive Bonding Capital Markets Day - June 13, 2019 A A B 5. Splitting 7. Donor wafer becomes new wafer A 6. Annealing and CMP touch polishing SiC/SiC Smart-Cu
Slide 107: SiC: new substrate development
Soitec Proprietary Copyright @ 2019 Soitec SiC: New substrate development Leverage Soitec’s technology to develop a new SiC engineered substrate Current focus on 6-inch SiC new substrate technology (Smart CutTM of SiC already demonstrated in 3-4 inch in 1999) Sampling 150mm for device development /
Slide 108: Compound engineered substrates
Soitec Proprietary Copyright @ 2019 Soitec Compound engineered substrates L e v e r a g i n g S m a r t C u t TM f o r n o n - S i s u b s t r a t e s InGaN Buried Oxide InP layer <1μm Capital Markets Day - June 13, 2019 Sapphire Handle substrate Soitec’s InGaNOS substrate Soitec’s InP epi-ready sub
Slide 109: Core technologies for substrate engineering
Soitec Proprietary Copyright @ 2019 Soitec Core technologies for substrate engineering Smart technologies Technology platform RF-SOI Smart CutTM FD-SOI Capital Markets Day - June 13, 2019 Smart StackingTM POI Filter Power Epitaxy expertise MEMS (thin membrane) Modeling & simulation 3D stacking Flexi
Slide 110: Thin crystalline membranes through Smart-Cut
Soitec Proprietary Copyright @ 2019 Soitec T h i n c r y s t a l l i n e m e m b r a n e s t h r o u g h S m a r t - C u t TM Ultrasonic sensors Capital Markets Day - June 13, 2019 Smart Smart MEMS + Added SOI MEMS piezo value - Dense arrays - Frequency resolution 40 x 40µm² cavities – 200mm 110
Slide 111: 3D layer stacking by Smart Cut
Soitec Proprietary Copyright @ 2019 Soitec 3 D l a y e r s t a c k i n g b y S m a r t C u t TM Recent demonstrations Capital Markets Day - June 13, 2019 IEDM2018 CoolCube VLSI2018 3D sequential stacked planar devices 111
Slide 112: Partnering for broader engineered substrates innovation
PA R T N E R I N G F O R B R O A D E R E N G I N E E R E D S U B S T R AT E S I N N O VAT I O N
Slide 113: Partnering within leading innovation platforms
Soitec Proprietary Copyright @ 2019 Soitec Partnering within leading innovation platforms A-Star SGP Expanding our R&D depth while keeping Capital Markets Day - June 13, 2019 compatibility with internal R&D corridors Early prototyping, focus on lead time and quality Accessing new ideas, disruptive p
Slide 114: Substrate Innovation Center
Soitec Proprietary Copyright @ 2019 Soitec Substrate Innovation Center Capital Markets Day - June 13, 2019 Become a worldwide center of technological excellence in the semiconductor ecosystem Integrate major actors to increase the capabilities for advanced substrates development and prototyping 114
Slide 115: Conclusions
Capital Markets Day - June 13, 2019 Soitec Proprietary Copyright @ 2019 Soitec 115 Conclusions
Slide 116: From technology to products roadmap
Soitec Proprietary Copyright @ 2019 Soitec From technology to products roadmap Balanced innovation process between technology and product focus Product life cycle synchronized with time-to-market requirements Capital Markets Day - June 13, 2019 Development Pilot Product Smart-Cut 2.0 Path Finding Te
Slide 117: Innovation – Key points
Soitec Proprietary Copyright @ 2019 Soitec Innovation – Key points Soitec has solid foundations for business driven innovation with right time-to-market Capital Markets Day - June 13, 2019 Soitec technologies enable new engineered substrates to support end customers’ system roadmap Strong collaborat
Slide 118: Cyril Menon, EVP Operations
Soitec, an amazing journey Cyril Menon EVP Operations
Slide 119: An agile and scalable manufacturing model to support growth
Cyril MENON Soitec Proprietary Copyright @ 2019 Soitec Executive Vice-President Operations An agile and scalable manufacturing model to support growth 1. An efficient organization Capital Markets Day - June 13, 2019 2. A global multi-site industrial footprint 3. An agile and scalable manufacturing 4
Slide 120: Operational excellence deployment to new sites/geographies
Operational excellence deployment Soitec Proprietary Copyright @ 2019 Soitec to new sites/geographies Engineering • Yield management Pasir Ris 1 Hasselt Bernin 3 Bernin 1 Bernin 2 • Industrialization Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing • Fab technology Production Pr
Slide 121: A global multi-site industrial footprint
Soitec Proprietary Copyright @ 2019 Soitec A global multi-site industrial footprint Total 300-mm capacity Total 200-mm capacity Total 150-mm capacity Bernin 2 Bernin 1 → 0.9 M wafers/y. → 1 .3 M wafers/y. Bernin 3 → potential of 0.4M Pasir Ris Simgui by FY’20 by FY’20 wafers/y GAN epitaxial Photonic
Slide 122: A robust and efficient industrial organization
Soitec Proprietary Copyright @ 2019 Soitec A robust and efficient industrial organization 100% 150 >80% of our toolset engineers work on shift uses standard with various skills to cover 365 days Capital Markets Day - June 13, 2019 equipment a year In-line scrap reduced by 800 >90% employees in Berni
Slide 123: Generating higher value through continuous improvement
Generating higher value through continuous Soitec Proprietary Copyright @ 2019 Soitec improvement Industry 4.0 – smart sampling Autonomous 200mm vehicle Smart solution based on statistical Introduction of autonomous simple data to identify the most relevant and scalable 200mm solution when sample to
Slide 124: From actions to KPIs
Soitec Proprietary Copyright @ 2019 Soitec From actions to KPIs Cost per wafer 300mm Soitec Bernin 2, ramp-up management Operational excellence Ramp-up driving substantial management process cost improvement Capital Markets Day - June 13, 2019 within 2 years RF-SOI yield 300mm ramp-up Soitec Bernin,
Slide 125: An agile manufacturing: ability to upgrade current capacities
An agile manufacturing: Soitec Proprietary Copyright @ 2019 Soitec Ability to upgrade current capacities on various locations 200mm fabs 300mm fabs Beyond SOI 150mm POI 1000000 1000000 500000 400000 750000 750000 300000 500000 500000 Capital Markets Day - June 13, 2019 200000 250000 250000 100000 0
Slide 126: 300mm Singapore fab: multi-product & agile
Soitec Proprietary Copyright @ 2019 Soitec 300mm Singapore fab: multi-product & agile Soitec, Pasir Ris 1, HVM Products manufactured in Singapore BULK BULK FD-SOI RF-SOI Refresh Epitaxy Capital Markets Day - June 13, 2019 Status Outlook • 80kwpy SOI capacity installed and qualified for both • SOI ra
Slide 127: A scalable manufacturing: 300mm Bernin fab
Soitec Proprietary Copyright @ 2019 Soitec A scalable manufacturing: 300mm Bernin fab, preparing the next industrialization phase Soitec, Bernin extension, France French authorities support Nano 2022 à IPCEI* signature Fab 5G project to be implemented as an extension of current Capital Markets Day -
Slide 128: Embedding corporate social responsibility into operations
Embedding corporate social responsibility (CSR) Soitec Proprietary Copyright @ 2019 Soitec into operations Reduce waste Deploy best practices on various sites 100% renewable New in-situ methodology Bernin 1, 2 & 3 energy treatment induces a 2X already certified reduction of external chemical waste t
Slide 129: Embedding CSR into operations & beyond
Soitec Proprietary Copyright @ 2019 Soitec Embedding CSR into operations & beyond Gender equality - women representation: 33% Low impact transport Promote Gender Equality Reduce environmental footprint • Develop diversity and promote hiring of SOITEC activity by: of women • Facilitating home office
Slide 130: Operations – Key points
Soitec Proprietary Copyright @ 2019 Soitec Operations – Key points Agile and scalable operations - multi-products and multi-sites Capital Markets Day - June 13, 2019 Support profitable growth and industrialization of innovative products Develop supply chain flexibility at competitive cost Maximize a
Slide 131: Conclusions
C A P I TA L M A R K E T S D AY Conclusions Paul Boudre Chief Executive Officer
Slide 132: Ready to achieve our new ambition
Soitec Proprietary Copyright @ 2019 Soitec Ready to achieve our new ambition Establish our leadership across all engineered substrates OUTLOOK THROUGH OUR JOURNEY Capital Markets Day - June 13, 2019 2 0 1 8 / 2 0 1 9 / 2 0 2 1 / €444m +30%PCC ~ €900m* EBITDA margin 34,3% EBITDA margin ~30% EBITDA ma
Slide 133: Thank you
THANK YOU Follow us on: For more information, visit us at: Soitec www.soitec.com @Soitec_FR / @Soitec_EN Soitec