Slide 1: Fiscal H1'20 results
Fiscal H1’20 results November 2019
Slide 2: Disclaimer
Disclaimer This document was prepared by Soitec (the “Company”) on November 27th, 2019 in connection with the announcement of the first half of fiscal year 2019-2020 (“FY’20”) results. This document is provided for information purposes only. It is public information only. The Company’s business oper
Slide 3: Agenda
Agenda 1 H1’20 Business highlights 2 H1’20 Financials 3 FY’20 Guidance 4 Soitec company profile – Additional information Nov. 2019 3 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 4: Agenda
Agenda 1 H1’20 Business highlights 2 H1’20 Financials 3 FY’20 Guidance 4 Soitec company profile – Additional information Nov. 2019 4 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 5: Fiscal H1'20 Business highlights
Fiscal H1’20 Business highlights SOI products portfolio Beyond SOI – POI & GaN Compound semiconductors RF-SOI – FD-SOI – Specialty SOI 200mm wafer sales at 121 M€ (+15% y/y) Piezo-on-insulator (POI) Silicon Carbide Growth supported by higher volumes Decision to add POI substrates Joint-develop
Slide 6: Agenda
Agenda 1 H1’20 Business highlights 2 H1’20 Financials 3 FY’20 Guidance 4 Soitec company profile – Additional information Nov. 2019 6 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 7: H1'20 highlights – Solid financial performance
H1’20 highlights – Solid financial performance Sharp revenue growth Strong increase in gross profit +30% at constant exchange rates and perimeter +32% in €m in €m 258 187 87 66 H1'19 H1'20 H1'19 H1'20 Further increase in current operating income Strong increase in net profit +23% +28% in €m in €m 51
Slide 8: H1'20: revenue breakdown
H1’20: revenue breakdown In €m Change vs H1’19 H1’20 H1’19 % at H1’20 sales breakdown % constant FX and scope 200mm wafer sales 121.4 102.0 +19% +15% 5% 200mm 300mm wafer sales 125.3 80.6 +56% +50% 47% 300mm Royalties and other 11.7 4.3 +174% +20% 48% revenues Royalties and others Total sales 248.5
Slide 9: H1'20 gross margin slightly down, as anticipated
H1’20 gross margin slightly down, as anticipated Gross margin 35.4% 33.8% as % of sales 32.4% 28.6% Strong operating leverage 24.9% Bernin I (200mm) running at full capacity 125.3 Bernin II (300mm) utilization rate close to full capacity at the end of H1’20 Sales Favorable forex impact 80.6 in €
Slide 10: Further increase in current operating income
Further increase in current operating income In €m H1’20 H1’19 Change Sales 258.5 186.9 +38% Gross profit 87.4 66.1 +32% Net R&D expenses sharply up: As a % of sales 33.8% 35.4% Increase in gross R&D expenses largely due to Gross R&D expenses (30.8) (24.0) +28% the integration of Dolphin Design an
Slide 11: Net profit sharply up
Net profit sharply up In €m H1’20 H1’19 Current operating income 51.3 41.6 H1’20 other operating income includes a gain on the disposal of an industrial site no longer in use Other operating income and expenses 1.8 (0.0) H1’20 net financial loss mainly includes: Operating income 53.2 41.6 The full
Slide 12: Significant increase in EBITDA of the continuing operations (Electronics)
Significant increase in EBITDA of the continuing operations (Electronics) EBITDA as % of sales 32.8% Half-year EBITDA increased more than 4x 30.2% compared to H1’17 24.4% H1’20 EBITDA up 27% vs. H1’19 16.5% 13.8% H1’20 EBITDA margin slightly down vs. H1’19, as anticipated 78.1 €m 61.4 H1’20 EBITDA i
Slide 13: Strong increase in operating cash-flow
Strong increase in operating cash-flow Continuing operations operating cash-flows Increase in D&A mainly results from continuous investments In €m H1’20 H1’19 Other items include: Income on asset disposals Net profit Income tax 41.6 35.9 Depreciation and amortization Financial loss 19.4 10.6
Slide 14: Decrease in cash position reflects high level of capex and EpiGaN acquisition
Decrease in cash position reflects high level of capex and EpiGaN acquisition Net change in cash = -€58.2m +36.2 in €m 175.3 (50.0) Cash position 175.3 (25.5) Generated (15.3) (0.8) cash 120,8 120,0 (3.0) Used cash 117.1 Cash and cash Net cash Net cash used in Acquisition of Loan repayment Net cash
Slide 15: A sound balance sheet
A sound balance sheet 30 Sept. 31 March 30 Sept. 31 March In €m In €m 2019 2019 2019 2019 Intangible assets 75.1 38.5 Tangible assets 287.4 253.6 Non-current financial assets 11.8 11.0 Total equity 452.3 398.3 Other non current assets 24.0 44.3 Long-term financial debt 195.7 199.2 Provisions and oth
Slide 16: A solid financial structure
A solid financial structure Shareholders’ equity Gross debt €m €m Equity reinforced by €54m: Mainly thanks to retained 452 398 222 219 H1’20 earnings Gross debt decreased by €3m: €10m decrease in drawings 31 March 19 30 Sept. 19 31 March 19 30 Sept. 19 on credit lines New leasing contracts Cas
Slide 17: Agenda
Agenda 1 H1’20 Business highlights 2 H1’20 Financials 3 FY’20 Guidance 4 Soitec company profile – Additional information Nov. 2019 17 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 18: FY'20 guidance (2019/2020 fiscal year)
FY’20 guidance (2019/2020 fiscal year) Soitec confirms expecting FY’20 sales to grow by around 30% at constant exchange rates and perimeter Soitec confirms expecting and Electronics EBITDA margin to reach around 30% Soitec now expects FY’20 capital expenditure to reach around 110 M€ (vs. 130 M
Slide 19: Agenda
Agenda 1 H1’20 Business highlights 2 H1’20 Financials 3 FY’20 Guidance 4 Soitec company profile – Additional information Nov. 2019 19 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 20: Soitec and its markets
Soitec and its markets Nov. 2019 20 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 21: Soitec – Who we are
Soitec – Who we are DESIGNER & MANUFACTURER OF INNOVATIVE SEMICONDUCTOR MATERIALS OUR MISSION 1,450 Employees Worldwide GLOBAL PRESENCE 4 High-growth Markets “ SMARTPHONES, AUTOMOTIVE, CLOUD & INFRASTRUCTURE, IOT To be recognized as a leader in innovative semiconductor standards for products 2 Uniqu
Slide 22: Soitec at a glance
Soitec at a glance 2019 Acquisition of EpiGaN for 5G RF, power electronics, and sensor applications 2015-16 Reinforce core 2018 1991 1999 2008 semiconductor First 300-mm wafers Singapore being shipped to Smart Cut ™ 1992 Bernin I 2002 Fab 2014 business 2017 RF-SOI/ FD-SOI Fab & Return to profitabili
Slide 23: A unique competitive position in the value chain
A unique competitive position in the value chain TRANSISTOR SMART CUT TM SMART Stacking TM TECHNOLOGY PROCESSED WAFER COMPOUND EPITAXY EXPERTISE DIE CHIP BOARD BULK ENGINEERED SUBSTRATES WAFERS Nov. 2019 23 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 24: Our pillars to build a unique competitive position
Our pillars to build a unique competitive position AGILE MANUFACTURING Make or Buy INNOVATION PLATFORMS PRODUCT LICENSING Nov. 2019 24 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 25: A global multi-site industrial footprint
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 Photonics Power wafer RF-SOI -SOI -SOI EpiGaN Hasse
Slide 26: A broad product portfolio of engineered substrates
A broad product portfolio of engineered 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 For power-efficient For highly efficient For high voltage For high perf. For improved For high
Slide 27: Key markets & three mega-trends driving semi. growth
4 key markets & three mega-trends driving semi. growth AI 5G ENERGY EFFICIENCY Nov. 2019 27 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 28: The engineered substrates market is growing into a multi-billion $ market
The engineered substrates market is growing into a multi-billion $ market ELECTRONIC DEVICES SEMICONDUCTOR CHIPS ADAS/EV Application processors ENGINEERED 4G/5G SUBSTRATES RF chips SOI AloT GaN SiC AIoT Healthcare InGaNOS POI Sensors Industry 4.0 InP Si epitaxy Photonics Cloud Imaging AR/VR Nov. 201
Slide 29: Today's engineered substrate content in 4 strategic end-markets
Today’s engineered substrate content in 4 strategic end-markets RF-SOI FD-SOI FD-SOI POI IMAGER-SOI RF-SOI POWER-SOI SMARTPHONES IoT Internet of Things PHOTONICS-SOI FD-SOI AUTOMOTIVE CLOUD & INFRASTRUCTURE Nov. 2019 29 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 30: Expected content growth across markets and applications
Expected content growth across markets and applications New market Displays segments RF-SOI FD-SOI FD-SOI GaN RF POI POWER-SOI IMAGER-SOI RF-SOI Power-SOI Displays POWER-SOI RF-SOI RF-SOI Sensors SMARTPHONES IoT Internet of Things FD-SOI GaN RF SiC for EV GaN Power GaN Power PHOTONICS-SOI FD-SOI AUT
Slide 31: Soitec technologies content
Soitec technologies content From SOI ( 2017) To multi-technologies (2022) 120 120 20mm2 30mm2 16mm2 Smartphones mm2 mm2 RF-SOI RF-SOI FD-SOI Spec SOI POI 100 140 300 1600 130mm2 Automotive 18mm2 mm2 mm2 mm2 mm2 Power-SOI Power-SOI FD-SOI GaN/SIC InGaNOS RF-SOI Power < 10 IoT mm2 150 350 4mm2 mm2 mm2
Slide 32: Expansion of our leadership in multiple markets
Expansion of our leadership 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 – POI & GaN Compounds semi. Specialty SOI
Slide 33: Profitable growth with many opportunities
Profitable growth with many opportunities 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 More opportunities to size 1,4 with SiC & InGaNOS 5,0 1,2 4,0 1,0 3,0 0,8 0,6 2,0 0,4 1,0 0,2 0,0 0,0 FY19 FY24 FY24 FY19
Slide 34: A solid growth path
A solid growth path Creating a standard for the mobile industry FOCUS ON CORE BUSINESS PROFITABLE GROWTH ESTABLISH CREDIBILITY 2 0 1 5 / 2 0 1 8 / 2 0 2 1 / S a l e s S a l e s S a l e s S a l e s €444m ~€900m* €233m EBITDA margin 34,3% EBITDA margin ~31% ~€1,4Bn* Nov. 2019 34 H1FY20 results Soitec
Slide 35: New substrate technologies, improved processes
New substrate technologies Improved processes ENGINEERED SUBSTRATES Anything on anything SMART CUT TM SMART Stacking TM New materials New structures Device Layer: Silicon, Strained Silicon, Germanium, III-V… Buried Insulator: SiO2, ONO… Handle Substrate: CZ Silicon, High-resistivity Si, Sapphire, Gl
Slide 36: Revolutionary Smart Cut – a mature technology
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 Active layer Functional/insulator layer Base wafer = me
Slide 37: Product portfolio: tailored to meet market growth
Product portfolio: tailored to meet market growth RF Power Processor & Photonics Imagers Piezo-on-insulator GaN Front-End Module connectivity SoC RF-SOI Power-SOI FD-SOI Photonics-SOI Imager-SOI POI GaN For highly efficient mobile For high voltage device integration High Reliable - Power-efficient -
Slide 38: A complete product portfolio for handsets & base station communication
A complete product portfolio for handsets & base station communication TRANSCEIVER TRANSCEIVER Antenna Antenna 5G LNA Filter Switch Tuner < 6GHz mmW < 6GHz mmW 5G HANDSET ARCHITECTURE RF- SOI FD- * SOI POI PA: Power Amplifier GaN LNA: Low Noise Amplifier Nov. 2019 38 H1FY20 results Soitec Proprietar
Slide 39: Expanding our leadership in engineered substrates
Expanding our leadership in engineered substrates Developing our ecosystems OEMs Understanding problems all along the value chain Fabless Foundries Design Engineered Specialty Compound RF-SOI FD-SOI POI substrates SOI semi. Bulk Silicon substrates epitaxy Nov. 2019 39 H1FY20 results Soitec Proprieta
Slide 40: Trends & markets
Trends & markets Nov. 2019 40 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 41: AI is about transforming data into meaningful information
AI is about transforming data into meaningful information AI Everywhere Key drivers AI Computing trend Classification Cloud computing Object detection Edge computing Speech detection On-Device AI Data analysis Nov. 2019 41 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 42: Smartphones
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 face facing 3D sensor Image signal Facial recognition processors 4G 5G
Slide 43: Automotive
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- SOI/GaN of radars/Lidar/Camera SOI for Lidar
Slide 44: IoT
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 of AR/VR/MR FD-SOI will now Speed address those performance areas GPS for Ear
Slide 45: Cloud & 4G/5G infrastructure
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 quantum Photonics-SOI GaN, SiC for data comput
Slide 46: Soitec products
Soitec products Nov. 2019 46 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 47: RF-SOI
RF-SOI Nov. 2019 47 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 48: RF-SOI: an industry standard for Front-End Module (FEM)
RF-SOI: an industry standard for Front-End Module (FEM) Product description Value proposition 200 mm 〉 RF-SOI is present in 100% of 300 smartphones mm 〉 RF-SOI is a standard for RF FEM components (antenna tuners, A solid product roadmap to cover all RF FEM components switches, LNAs, PAs) -100dBm RFe
Slide 49: Soitec leveraging RF ecosystem
Soitec leveraging RF ecosystem Foundries RF IC / FEM manufacturers Chipset makers Phone makers Switch Antenna Tuner PA Filter > 12 SOI Foundries Infrastructure Nov. 2019 49 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 50: FD-SOI
FD-SOI Nov. 2019 50 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 51: Soitec FD-SOI: Versatile platform to connect the unconnected
Soitec FD-SOI: Versatile platform to connect the unconnected Early adopters Customer requirements FD-SOI success factors Nodes RF eMRAM 28nm Wide bandwidth Reduced components 5G Networks Integration 18nm RF / Digital integration Seamless packaging 22nm 12nm Reliability Thick RF metal Automotive Size
Slide 52: 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 D i g i t a l / A n a l o g / R F … Techno Smartphones Automotive IoT AI Networks capability Key features Core logic scalability Energy efficiency Integration Platform RF transceivers <6GHz NRE/Cost High voltage RF transceivers mmW High performance analog
Slide 53: FD-SOI body bias: leveraging substrate architecture
FD-SOI body bias: leveraging substrate architecture to enable transistor performance on-demand - Dolphin Design providing IP solution to fabless to master power management - FD-SOI body biasing deployed as main pillar Nov. 2019 53 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 54: Specialty-SOI
Specialty-SOI Nov. 2019 54 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 55: Specialty-SOI products
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 silicon NIR Nov. 2019 55 H1FY20 results Soitec Proprietary Copy
Slide 56: Specialty-SOI: Power-SOI
Specialty-SOI: Power-SOI Product Value proposition Growth drivers & outlook description Power-SOI footprint expected to rise further in HIGH RELIABILITY automotive 〉 In-Vehicule Networking PERFORMANCE 〉 Infotainment 200 mm 〉 Excellent electrical isolation 〉 Power train 〉 Higher temperature operation
Slide 57: Specialty-SOI: Photonics-SOI
Specialty-SOI: Photonics-SOI Product Value proposition Ecosystem & TAM description Integration platform for complex optical function using CMOS fab Silicon photonics growth drivers: 〉 Data center traffic High speed modulation compliant 〉 Optical transceivers for data rate >= 100G/s 200 mm 〉 Optical
Slide 58: Piezo-electric-on-Insulator (POI)
Piezo-electric-on-Insulator (POI) Nov. 2019 58 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 59: Piezo-On-Insulator to enable new generation of filters
Piezo-On-Insulator to enable new generation of filters Product Growth drivers description & market outlook Among all RF devices, filters will: 〉 grow the fastest with ~15-20% CAGR till 2022 〉 account for ~60% of the overall RF component market 20 POI: 15 Thin piezo layer on oxyde on high resistivity
Slide 60: Piezo-On-Insulator enabling new generation of filters
Piezo-On-Insulator enabling new generation 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 Data rates up Larger bandwidth High temperature stability High Band den
Slide 61: EpiGaN
EpiGaN Nov. 2019 61 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 62: External growth strategy: expand core business
External growth strategy: expand core business May, 2019 - Soitec acquires EpiGaN to accelerate engineered substrates penetration in booming 5G and Power markets EpiGaN at a glance • Start-up founded in 2010 as a spin-off from IMEC • Widely recognized for its strong expertise in GaN for several year
Slide 63: GaN epi wafers: leading technology for 5G
GaN epi wafers: leading technology for 5G Market outlook EpiGaN SAM in FY24 ~300 k wafers (150mm eq.) 〉 Cellular base stations (>5W power amplifier) Future opportunities on power automotive & sensors GaN - becoming mainstream for 4G / 5G <6Ghz and mmW 〉 Cellular handset (<3W Power amplifier) GaAs –
Slide 64: InGaNOS
InGaNOS Nov. 2019 64 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 65: InGaNOS – A new approach with engineered substrates for a huge display market
InGaNOS – A new approach with engineered 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 InGaN red LEDs micrometer-scale than phosphide 〉 Same InGaN material for
Slide 66: Silicon-Carbide (SiC)
Silicon-Carbide (SiC) Nov. 2019 66 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 67: Exponential growth in high voltage power applications
Exponential growth in high voltage power applications High growth applications SiC and GaN (CAGR – ’17~’25) Power semiconductor forecast Source: IHS Markit’18 Nov. 2019 67 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec
Slide 68: Electrical vehicle - First mass market for SiC
Electrical vehicle - First mass market for SiC SiC vs. Silicon Performance improvement and size reduction in inverter Positioning of SiC and GaN in xEV EV Charger Source: Yole - PowerSiC’17 From Si-IGBT based module to SiC MOSFET based module: Potential of SiC to - miniaturization: 30% replace Silic
Slide 69: Thank you
Thank you Follow us on: Soitec @Soitec_FR / @Soitec_EN Soitec For more information, visit us at: www.soitec.com Nov. 2019 69 H1FY20 results Soitec Proprietary Copyright @ 2019 Soitec