Slide 1: FY'20 Annual Results
FY’20 Annual Results SOITEC June 11 2020
Slide 2: Disclaimer
Disclaimer This document is provided by Soitec (the “Company”) for information purposes only. The Company’s business operations and financial position is described in the Company’s registration document 2018-2019 registered by the Autorité des marchés financiers (the “AMF”) on July 4th, 2019 under v
Slide 3: Outline
Outline 1 FY’20 Highlights 2 Business Units highlights 3 FY’20 financials 4 Outlook Jun-20 3 Soitec FY'20 Annual results Soitec proprietary
Slide 4: Outline
Outline 1 FY’20 Highlights 2 Business Units highlights 3 FY’20 financials 4 Outlook Jun-20 4 Soitec FY'20 Annual results Soitec proprietary
Slide 5: FY'20 Highlights – Continuing our strong profitable growth and value creation trajectory
FY’20 Highlights – Continuing our strong profitable growth and value creation trajectory Semiconductor Differentiated engineered substrates to serve megatrends our strategic end markets Key figures in FY’20 5G ~600 M€ +28% y/y organic growth in FY’20 sales Sales x2.5 in last 3 years 31% AI EBITDA EB
Slide 6: FY'20 – Financial highlights
FY’20 – Financial highlights Sharp increase in revenues Sustained Electronics EBITDA margin Strengthened balance sheet +28% 31% 0.10x at constant exchange rates and perimeter Electronics EBITDA margin Net debt / Shareholders’ equity +35% 598 +22% 185 552 in €m in €m in €m 444 152 398 47 54 FY'19 FY'
Slide 7: FY'20 highlights – Steady expansion across the company to support profitable growth
FY’20 highlights – Steady expansion across the company to support profitable growth TALENT › New organization with Business Units focused on Strategic end markets and Singapore reinforced as business hub with › 1,600 employees globally stronger Corporate executive presence – Successful integration o
Slide 8: Covid-19 pandemic – we are getting out stronger company from the crisis
Covid-19 pandemic – we are getting out stronger company from the crisis PROTECTING PEOPLE › Masks provided and mandatory for every single person on Soitec sites › Infrared measurement to check body temperature at site entrance › Gel manufactured and provided on site › Protocol in place, split incomi
Slide 9: Outline
Outline 1 FY’20 Highlights 2 Business Units highlights 3 FY’20 financials 4 Outlook Jun-20 9 Soitec FY'20 Annual results Soitec proprietary
Slide 10: RF-SOI Business Unit
RF-SOI Business Unit 5G FY’20 highlights Market dynamics Established standard for smartphone RF front-end modules Global smartphone market to decline ~10% Y/Y in 2020 (strong rebound expected › Switch, diversity path (LNA + switch), antenna tuners in 2021) Strong demand in both 200-mm and 300-mm › 5
Slide 11: FD-SOI Business Unit
FD-SOI Business Unit EE AI 5G FY’20 highlights Market dynamics Adding Voice & Sight with Vision, Edge-Compute & Machine-Learning FD-SOI continues adoption for Ultra Low Power applications Processor(s) Adding Radio Connectivity to the cloud with RF-to-Bits SoC(s) managed by AI & › Low-Power FPGA plat
Slide 12: Specialty-SOI Business Unit
Specialty-SOI Business Unit AI EE FY’20 highlights Market dynamics Power-SOI for management control Automotive market – Weak demand in 2020, slow recovery ahead › Sustainable business, product extension in 300-mm › Innovation to fuel Power-SOI demand for Battery Management System (BMS) › New product
Slide 13: Filters Business unit
Filters Business unit 5G FY’20 highlights Market dynamics POI – Ideal substrate for SAW filters, new paradigm addressing Sub-6 GHz 5G Sub-6 GHz adoption driving content growth for filters › Strong traction from front-end module makers › Expecting >50% filter number growth in smartphones by 2023 › No
Slide 14: EpiGaN Business Unit
EpiGaN Business Unit EE 5G FY’20 highlights Market dynamics Successful integration within Soitec GaN epiwafers for RF › EpiGaN as Soitec Business Unit › Base stations: strong traction for GaN RF infrastructure (power amplifiers) › Qualification of large capacity production tool › Smartphones: GaN co
Slide 15: Compounds Business Unit
Compounds Business Unit EE 5G FY’20 highlights Market dynamics Smart CutTM based Silicon Carbide – JDA with Applied Materials Silicon Carbide › Combine Soitec leadership in engineered substrates with Applied Materials’ › Pilot line expected to be fully operational in Q420 expertise in materials engi
Slide 16: Dolphin Design
Dolphin Design AI EE Key achievements in FY’20 Market dynamics IP business IP business › More than 20 GlobalFoundries-FD-SOI Adaptative-Body-Biasing IP licenses › Introduce DSP platform to address AI & edge applications (smart meters) › Launched new IP R&D (focused on 22nm FD-SOI & 22nm ultra low le
Slide 17: 5G: Soitec comprehensive offering for key markets
5G: Soitec comprehensive offering for key markets 5G 5G handset Sub-6Ghz FEM key blocks Antennas Front-end module: Power amplifier, switches, antenna tuner, filters Transceivers Other: Baseband Sensors, processor display, 5G handset mmW audio Further transceivers key blocks Apps integration processo
Slide 18: Automotive: Soitec comprehensive offering for key markets
Automotive: Soitec comprehensive offering for key markets 5G EE AI C A S E Connected Autonomous Shared Electrification 16M 7M 1M 23M Sales of 5G Sales of L3 and Global shared Global EV enabled vehicles above vehicles fleet in 2028 sales in 2030 in 2030 in 2030 Source: PwC, 2019 Source: IHS Markit, 2
Slide 19: Outline
Outline 1 FY’20 Highlights 2 Business Units highlights 3 FY’20 financials 4 Outlook Jun-20 19 Soitec FY'20 Annual results Soitec proprietary
Slide 20: FY'20 highlights – Record results
FY’20 highlights – Record results Sharp revenue growth Increase in gross profit +28% at constant exchange rates and perimeter +18% in €m in €m 598 195 165 444 FY'19 FY'20 FY'19 FY'20 Further increase in Record net profit Electronics EBITDA +22% +22% in €m in €m 185 110 152 90 FY'19 FY'20 FY'19 FY'20
Slide 21: FY'20: revenue breakdown
FY’20: revenue breakdown In €m FY’20 FY’19 Change vs FY’19 FY’20 sales breakdown % at constant % FX and scope 150/200-mm wafer sales 274.9 221.0 +24% +20% 5% 150/200-mm 300-mm wafer sales 294.4 205.7 +43% +38% 46% Royalties and other 300-mm 28.3 17.3 +63% +18% 49% revenues Royalties and other revenu
Slide 22: Gross margin evolution
Gross margin evolution + 37.2% 34.4% Gross margin tailwinds Gross margin 32.7% as % of sales 31.5% › Strong operating leverage › Bernin I (200-mm) running at full capacity 26.7% › Bernin II (300-mm) utilization rate close to full capacity throughout FY’20 294.4 › Favorable forex impact Sales - 205.7
Slide 23: Further increase in current operating income
Further increase in current operating income › Net R&D expenses sharply up: In €m FY’20 FY’19 Change › Increase in gross R&D expenses › Full-year impact of Dolphin Design and integration of Sales 597.5 443.9 +35% EpiGaN › Higher resources allocated to projects Gross profit 195.4 165.0 +18% › New R&D
Slide 24: Net profit sharply up
Net profit sharply up In €m FY’20 FY’19 › Other operating income includes a gain on the disposal of an industrial site no longer in use Current operating income 117.7 108.4 › Net financial loss: › Mainly includes the non-cash financial interests related to Other operating income and expenses 1.8 0.5
Slide 25: Significant increase in Electronics EBITDA (continuing operations)
Significant increase in Electronics EBITDA (continuing operations) EBITDA as % of sales 34.3% 31.0% 29.2% › EBITDA increased more than 5x compared to FY’16 › FY’20 EBITDA up 22% vs. FY’19 15.6% 16.7% › FY’20 EBITDA margin slightly down as anticipated (lower gross margin) 185.4 EBITDA 152.3 in €m 90.
Slide 26: Strong increase in operating cash-flow
Strong increase in operating cash-flow Operating cash-flows from continuing operations › Strong increase in D&A mainly results from: › Continuous investments In €m FY’20 FY’19 › Full-year impact of Dolphin Design and integration of EpiGaN Net profit 110.5 89.9 › Increase in WCR due to: Depreciation
Slide 27: Increase in cash position with sustained level of capex and EpiGaN acquisition
Increase in cash position with sustained level of capex and EpiGaN acquisition Net change in cash: + €15.7m in €m 100.7 (108.8) Cash position 16.0 (4.6) 36.8 Generated cash (25.5) 1.0 Used cash 191.0 Forex impact 175.3 Cash and cash Net cash generated Net cash used in Acquisition of Other net cash D
Slide 28: A sound and further strengthened balance sheet
A sound and further strengthened balance sheet 31 March 31 March 31 March 31 March In €m In €m 2020 2019 2020 2019 Intangible assets 87.5 38.5 Tangible assets 297.2 253.6 Non-current financial assets 14.4 11.0 Total equity 551.7 398.3 Other non current assets 9.0 44.4 Long-term financial debt 192.5
Slide 29: A solid financial structure
A solid financial structure › Equity reinforced by €154m: Shareholders’ equity Gross debt €m €m › Mainly thanks to retained FY’20 earnings › Gross debt increased by €23m: 552 › €22m loan reimbursed 398 › New leasing contracts 222 245 › €3m put option granted to the minority shareholders of EpiGaN ›
Slide 30: Outline
Outline 1 FY’20 Highlights 2 Business Units highlights 3 FY’20 financials 4 Outlook Jun-20 30 Soitec FY'20 Annual results Soitec proprietary
Slide 31: Outlook – FY'21 & FY'22
Outlook – FY’21 & FY’22 FY’21 guidance › Stable revenues at constant exchange rates and perimeter › Electronics EBITDA margin to reach around 30% FY’22 outlook › Revenues expected at around 800 million Euros* * Based on a $/€ rate of 1.13 vs. €900m initially indicated Jun-20 31 Soitec FY'20 Annual r
Slide 32: Mid-term outlook – Solid growth ahead for SOI and new products
Mid-term outlook* – Solid growth ahead for SOI and new products (POI, GaN…) 5G AI EE FY’24 SAM* New products: New opportunities: ~1.6-2.4 Billion $ > 500 M$ SAM* in FY’24 >1 Billion $ SAM* 4G/5G – Auto – IoT – Cloud 5G – Auto – Sensors Displays – Auto – Imaging… SOI products portfolio Beyond SOI – P
Slide 33: Thank you
Thank you Follow us on: Soitec @Soitec_FR / @Soitec_EN Soitec www.soitec.com Jun-20 33 Soitec FY'20 Annual results Soitec proprietary