Soitec Sa · EURONEXT:SOI
Soitec Sa — Shareholder Meeting (July 2022)
32 slides from Soitec Sa's shareholder meeting presentation, Jul 26, 2022
Slide 1: 2022 Annual General Meeting
2022 ANNUAL GENERAL MEETING Paris | Tuesday, July 26th, 2022
Slide 2: Disclaimer
DISCLAIMER SOITEC PROPRIETARY Any unauthorized reproduction, disclosure, or distribution of copies by any person of any portion of this work may be a violation of Copyright Laws, could result in the awarding of Damages for infringement, and may result in further civil and criminal penalties. All rig
Slide 3: Agenda
#01 AGENDA #02 #03 #04 Introduction by the Presentation of the Presentation of the Presentation of the Chairman of the Board Company's activity For financial statements for | Statutory Auditors’ of Directors Fiscal year 2021-2022 Fiscal year 2021-2022 report #05 #06 #07 Comments by the Questions & A
Slide 4: Éric Meurice – Chairman of the Board of Directors
Éric Meurice – Chairman of the Board of Directors © Soitec 2022. No copying or distribution permitted. PAGE 4 1 INTRODUCTION 2 3 4 5 6 7
Slide 5: Paul Boudre – Chief Executive Officer
Paul Boudre – Chief Executive Officer © Soitec 2022. No copying or distribution permitted. PAGE 5 1 2 PRESENTATION OF THE COMPANY’S ACTIVITY 3 4 5 6 7
Slide 6: Record FY22 performance and raising FY26 ambitions
RECORD FY22 PERFORMANCE AND ROBUST FUNDAMENTALS AND SUSTAINABILITY AT THE HEART OF RAISING FY26 AMBITIONS BUSINESS MODEL POWERED OUR VALUE CREATION STRATEGY BY LONG-TERM MEGATRENDS • Record FY22 results driven by • Soitec leverages powerful and • Soitec is a purpose driven company higher demand and
Slide 7: Leading supplier of engineered substrates
LEADING SUPPLIER ENGINEERED SUBSTRATES © Soitec 2022. No copying or distribution permitted. PAGE 7 1 2 PRESENTATION OF THE COMPANY’S ACTIVITY 3 4 5 6 7
Slide 8: Revenue: $1B in FY22, ~$2.3B target
~$2.3B REVENUE (FINANCIAL MODEL) ~$1.2B $1B REVENUE REVENUE $668M REVENUE FY21 © Soitec 2022. No copying or distribution permitted. PAGE 8 1 2 PRESENTATION OF THE COMPANY’S ACTIVITY 3 4 5 6 7
Slide 9: EBITDA margin
~40% EBITDA MARGIN (FINANCIAL MODEL) 35.8% ~36% EBITDA MARGIN EBITDA MARGIN DRIVING OPERATING LEVERAGE AND OPERATIONAL EXCELLENCE 30.7% EBITDA MARGIN FY21 © Soitec 2022. No copying or distribution permitted. PAGE 17 1 2 PRESENTATION OF THE COMPANY’S ACTIVITY 3 4 5 6 7
Slide 10: Wafer capacity by size and end market
~4.5M WAFER CAPACITY MOBILE ~3.4M WAFER COMMUNICATIONS CAPACITY 150mm AUTOMOTIVE & INDUSTRIAL ~2.7M WAFER CAPACITY MOBILE ~2.3M WAFER COMMUNICATIONS CAPACITY 200mm AUTOMOTIVE & INDUSTRIAL SMART DEVICES MOBILE COMMUNICATIONS 300mm AUTOMOTIVE & INDUSTRIAL SMART DEVICES © Soitec 2022. No copying or dis
Slide 11: Group priorities and sustainability pillars
GROUP PRIORITIES SUSTAINABILITY PILLARS DRIVE THE TRANSITION TO GROWTH PROFITABILITY A SUSTAINABLE ECONOMY FY26 ~$2.3B FY26 ~40% WITH OUR INNOVATION AND revenue target EBITDA margin target OPERATIONS LEVERAGE OUR INCLUSIVE AND INSPIRING COMPANY CULTURE PEOPLE SUSTAINABILITY Attract and Support our v
Slide 12: Léa Alzingre – Chief Financial Officer
Léa Alzingre – Chief Financial Officer © Soitec 2022. No copying or distribution permitted. PAGE 12 1 2 3 FINANCIAL STATEMENTS 4 5 6 7
Slide 13: P&L, cash flow and balance sheet highlights
P&L CASH FLOW BALANCE SHEET €0.9B SALES €255M OPERATING CASH FLOW(1) €1B EQUITY +50% YoY Organic Growth +46% vs FY21 +€367M vs FY21 35.8% EBITDA(1) MARGIN €229MCAPEX €728M GROSS CASH POSITION +5.1pts vs FY21 x1.7 vs FY21 Capex +€83M vs FY21 €202M NET PROFIT(2) €42M FREE CASH FLOW(1) €142M NET CASH P
Slide 14: FY22 revenue by wafer size and end market
40% 57% €M FY22 FY21 Change (%) 150/200mm of FY22 300mm of FY22 WAFER SALES revenue WAFER SALES revenue 150/200mm wafer sales 344 277 +24% • Strong increase in 150mm POI • Strong increase in 300mm for RF filters enabled by good RF-SOI supported by 5G 300mm wafer sales 488 277 +77% ramp-up in product
Slide 15: Income statement: revenue to current operating income
Current Operating Income jumped from €M FY22 FY21 Change (%) 15.4% to 22.6% of revenue Revenue 863 584 +48% • Thanks to a strong increase in Gross Profit, up by 5.2 points (operating leverage, Gross profit 316 183 +72% industrial performance, favorable phasing as a % of revenue 36.6% 31.4% due to lo
Slide 16: Operating income to net profit
€M FY22 FY21 Other operating income includes the full reversal of an impairment loss related to Current operating income 195 90 Singapore industrial building for €9.1M - Other operating income and expenses 10 0 Net Financial Result Operating income 205 90 • Increase in financial expenses due to the
Slide 17: Cash flow statement
€M FY22 FY21 €52M Working Capital cash outflow due to strong Operating income 205 90 growth in activity (receivables/ inventories) - Depreciation and amortization 81 60 €12M decline in tax paid due to tax - Other items 23 29 reimbursement EBITDA 309 179 Change in working capital (52) 9 Operating cas
Slide 18: Consolidated balance sheet
ASSETS - in €M 31 March 2022 31 March 2021 LIABILITIES AND EQUITY - in €M 31 March 2022 31 March 2021 €184M net increase in tangible assets includes Intangible assets 108 99 Total equity 1,044 677 Capex related to: • €111M capacity investment Tangible assets 562 378 Long-term financial debt 518 612
Slide 19: FY23 outlook
~20% REVENUE GROWTH AT EBITDA MARGIN EXPECTED ~36% ~€260M CAPEX CONSTANT FX RATE ORGANIC GROWTH WILL STRONG OPERATING LEVERAGE CONTINUING CAPACITY CONTINUE TO BE DRIVEN BY OUTWEIGHS HIGHER COSTS INVESTMENT ALL 3 END-MARKETS • Higher operating leverage • First investments in SiC tools (150 & 200mm) •
Slide 20: Statutory Auditors' Report
Ernst & Young | KPMG © Soitec 2022. No copying or distribution permitted. PAGE 20 1 2 3 4 STATUTORY AUDITORS’ REPORT 5 6 7
Slide 21: Statutory Auditors' reports
Statutory Auditors’ report on the consolidated financial statements for the fiscal year ended March 31, 2022 Statutory Auditors’ report on the statutory financial statements for the fiscal year ended March 31, 2022 Report to the Audit and Risks Committee Statutory Auditors’ special report on the reg
Slide 22: Éric Meurice – Comments
Éric Meurice – Chairman of the Board of Directors © Soitec 2022. No copying or distribution permitted. PAGE 22 1 2 3 4 5 COMMENTS 6 7
Slide 23: Q&A
© Soitec 2022. No copying or distribution permitted. PAGE 23 1 2 3 4 5 6 Q&A 7
Slide 24: Resolutions
Patrick Noonan – Meeting Secretary © Soitec 2022. No copying or distribution permitted. PAGE 24 1 2 3 4 5 6 7 RESOLUTIONS
Slide 25: Resolutions 1–6: financial statements and auditors
1st Resolution – Approval of the statutory financial statements for the fiscal year ended March 31, 2022 2nd Resolution – Approval of the consolidated financial statements for the fiscal year ended March 31, 2022 3rd Resolution – Appropriation of net profit for the fiscal year ended March 31, 2022 4
Slide 26: 7th Resolution – Amendment to by-laws
7th Resolution – Amendment to Article 12.2 of the Company’s by-laws to (i) permit staggered terms of office for directors, and (ii) add an age limit for directors © Soitec 2022. No copying or distribution permitted. PAGE 26 1 2 3 4 5 6 7 RESOLUTIONS
Slide 27: Resolutions 8–15: director appointments
8th Resolution – Appointment of Pierre Barnabé as a director 9th Resolution – Appointment of Fonds Stratégique de Participations (“FSP”) as an independent director 10th Resolution – Reappointment of Christophe Gégout as an independent director 11th Resolution – Reappointment of Bpifrance Participati
Slide 28: Resolutions 16–20: compensation policies
16th Resolution – Approval of the compensation policy for the Chair of the Board of Directors 17th Resolution – Approval of the compensation policy for the members of the Board of Directors 18th Resolution – Approval of the generic compensation policy for any future Chief Executive Officer 19th Reso
Slide 29: Resolutions 21–24: compensation and share transactions
21st Resolution – Approval of the information relating to the compensation of the Company’s corporate officers referred to in Article L. 22-10-9, I of the French Commercial Code 22nd Resolution – Approval of the fixed, variable and exceptional components of the total compensation and benefits of any
Slide 30: Resolutions 25–27: capital authorizations
25th Resolution – Authorization to be granted to the Board of Directors to reduce the share capital by canceling shares acquired by the Company pursuant to Article L. 22- 10-62 of the French Commercial Code, up to a maximum of 10% of the share capital 26th Resolution – Delegation of authority to be
Slide 31: 28th Resolution – Powers for formalities
28th Resolution – Powers for formalities © Soitec 2022. No copying or distribution permitted. PAGE 31 1 2 3 4 5 6 7 RESOLUTIONS
Slide 32: Thank you
THANK YOU 2022 ANNUAL GENERAL MEETING