Slide 1: First half 17 results
First half 17 results December 2016
Slide 2: Disclaimer
Disclaimer This document was prepared by Soitec (the “Company”) and is provided for information purposes only. It is confidential and must be treated as such by all persons who receive it. It may not be reproduced, distributed or published, directly or indirectly, in whole or in part, nor distribute
Slide 3: Agenda
Agenda 1 H1’17 highlights 2 H1’17 financials 3 Business review: promising prospects in Electronics 4 Outlook 5 Appendix 12/8/2016 3 SOITEC H1’17 RESULTS – DECEMBER 2016
Slide 4: Agenda: H1'17 highlights
Agenda 1 H1’17 highlights 2 H1’17 financials 3 Business review: promising prospects in Electronics 4 Outlook 5 Appendix 12/8/2016 4 SOITEC H1’17 RESULTS – DECEMBER 2016
Slide 5: Successful implementation of the strategy initiated in early 2015
Successful implementation of the strategy initiated in early 2015 Position Electronics Strengthen financial Withdraw from non- business to generate position and core businesses profitable growth shareholder structure Soitec now refocused on its core Electronics business and well positioned to levera
Slide 6: Further substantial improvement in operating profitability in H1'17
Further substantial improvement in operating profitability in H1’17 Sales growth (Electronics) Significant increase in gross margin +4% at constant 28.6% in €m exchange rates as a % of sales 24.9% 109 112 32.0 Gross profit in €m 27.1 H1'16 H1'17 H1'16 H1'17 restated restated Increase in current oper
Slide 7: Key transaction completed in Q1'17 to strengthen balance sheet and support future growth
Key transaction completed in Q1’17 to strengthen balance sheet and support future growth 3 strategic partners holding A total equity Use of funds 14.5% of Soitec’s capital each injection of €151.9m Wholly-owned by CEA, Soitec’s R&D and Reserved Capital €40m to be Growth technological partner since 1
Slide 8: Agenda: H1'17 financials
Agenda 1 H1’17 highlights 2 H1’17 financials 3 Business review: promising prospects in Electronics 4 Outlook 5 Appendix 12/8/2016 8 SOITEC H1’17 RESULTS – DECEMBER 2016
Slide 9: H1'17: revenue breakdown
H1’17: revenue breakdown In million euros Q1’17 Q2’17 H1’17 Change1 Change1 April – June July – Sept. vs H1’16 at constant FX 200mm wafer sales 42.7 44.7 87.4 +4% +5% 300mm wafer sales 11.4 10.7 22.0 -2% -1% Royalties and IP revenues 1.4 1.3 2.7 +8% +9% Total sales 55.4 56.7 112.1 +3% +4% 200mm wafe
Slide 10: Group consolidated P&L (1/2)
Group consolidated P&L (1/2) H1’16 In million euros H1’17 Change restated Sales 112.1 108.9 +3% Gross profit 32.0 27.1 +18% As a % of sales 28.6% 24.9% See detail Research and development expenses (9.7) (8.0) +20% on slide 12 As a % of sales 8.6% 7.4% See detail Selling, general and administrative e
Slide 11: Electronics activity back to profitable growth, with significant operating leverage ahead
Electronics activity back to profitable growth, with significant operating leverage ahead Significant revenue 140 35% 1 recovery over the last 31% 29% quarters 30% 120 27% 25% 100 22% First benefits from 2 20% the cost saving plan 80 15% 60 9% 10% Wafer manufacturing 3 benefiting from 40 operating l
Slide 12: H1'17 operating expenses
H1’17 operating expenses H1’16 R&D expenses (in million euros) H1’17 restated Gross R&D expenses (21.3) (19.8) Prototype sales and other 2.2 2.3 Subsidies and income tax credit 9.4 9.5 Total net R&D expenses (9.7) (8.0) As a % of sales (8.6%) (7.4%) H1’16 SG&A expenses (in million euros) H1’17 resta
Slide 13: Group consolidated P&L (2/2)
Group consolidated P&L (2/2) H1’16 In million euros H1’17 restated Current operating income 9.4 7.9 Other operating income and expenses (1.2) (5.3) Operating income 8.2 2.6 See detail Net financial income/(expense) (5.9) (12.7) on slide 14 Income tax (0.2) (0.3) Net profit / (loss) from continuing o
Slide 14: H1'17 net financial result
H1’17 net financial result H1’16 In million euros H1’17 restated Interest expense on OCEANE 2018 (2.4) (5.0) One-off charge related to the repurchase of OCEANE 2018 (2.2) - Interest expense on loans and credit lines (0.4) (1.1) Interest expense on leasing (0.7) (0.5) Non recurring financial expense
Slide 15: Net profit from discontinued operations
Net profit from discontinued operations Directly reported at the bottom of consolidated P&L H1’16 In million euros H1’17 restated Sales 0.4 11.9 Expenses (0.6) (16.6) Current operating income/(loss) (0.2) (4.6) Other operating income and expenses (1.8) (0.3) Operating income/(loss) (1.9) (4.9) Net f
Slide 16: H1'17 net cash generated by operating activities
H1’17 net cash generated by operating activities H1’16 In million euros H1’17 restated Net profit / (loss) 3.1 (42.8) of which continuing activities 2.1 (10.4) of which discontinued activities 1.0 (32.4) Non cash items 10.5 27.9 of which continuing activities 16.4 25.4 of which discontinued activiti
Slide 17: H1'17 cash generation
H1’17 cash generation Change in net cash = + €34.1m in €m 9.2 (110.7) 145.3 Net cash generated Net cash by operating used by activities = investing Continuing activities € (2.3)m activities = € (2.2)m Discontinued (5.4) activities 83.1 2.2 0.8 49.1 8.2 (4.5) (3.0) 8.2 2.1 Cash and Net cash Net cash
Slide 18: Major strengthening of the balance sheet during H1'17
Major strengthening of the balance sheet during H1’17 Shareholders’ equity Gross debt in €m in €m 219 140 119 -8 31 March 16 30 September 16 31 March 16 30 September 16 Cash and cash equivalents Net debt in €m in €m 170 83 49 35 31 March 16 30 September 16 31 March 16 30 September 16 12/8/2016 18 SO
Slide 19: Simplified consolidated balance sheet
Simplified consolidated balance sheet 30th September 2016 30th Sept 31st March 31st March In million euros 2016 2016 In million euros 30th Sept 2016 2016 Intangible assets 4.5 5.7 Total equity 139.9 (7.9) Tangible assets and other non current assets 148.4 154.2 Long-term financial debt 101.9 160.0 T
Slide 20: Agenda: Business review
Agenda 1 H1’17 highlights 2 H1’17 financials 3 Business review: promising prospects in Electronics 4 Outlook 5 Appendix 12/8/2016 20 SOITEC H1’17 RESULTS – DECEMBER 2016
Slide 21: Soitec products and technologies portfolio
Soitec products and technologies portfolio Well positioned to capture new market opportunities 2020 + 2017 + 5G World SINCE 2010 Electronics for Everyday Mobile, Automobile Use & Industry 2000-2010 PC, Gaming & Automobile Main Soitec product: PD-SOI Main Soitec products: RF-SOI, Power-SOI Main Soite
Slide 22: RF-SOI solid market fundamentals
RF-SOI solid market fundamentals A fast-growing market thanks to smartphone increasing complexity Increasing RF-SOI content LTE-A: market growth driver M units (cellular devices) • 100% of smartphones use RF-SOI technology 2000 • SOI content continues to grow within smartphones due to 1600 increased
Slide 23: Power-SOI for Automotive
Power-SOI for Automotive Strong legacy business, growing SOI footprint in Auto + 10 years ~80mm² 6 billion of proven track of SOI average content chips in automobiles based record in automotive in every car produced on Soitec Power-SOI wafers integrated circuits in 2015 Power-SOI market Soitec estim
Slide 24: FD-SOI ecosystem getting stronger
FD-SOI ecosystem getting stronger Further important milestones reached during last 6 months A rapidly growing Industrial readiness FD-SOI ecosystem and product launches GLOBALFOUNDRIES 22FDX industrial readiness Research Substrates Foundries Fabless & Consumer and roadmap extension September 2016
Slide 25: FD-SOI technology roadmap
FD-SOI technology roadmap GlobalFoundries: industry’s first multi-node FD-SOI roadmap Source: GlobalFoundries 12/8/2016 25 SOITEC H1’17 RESULTS – DECEMBER 2016
Slide 26: FD-SOI applications
FD-SOI applications First consumer electronic product launched in 2016 • Amazfit Watch launched in August in China by Huami (part-owned by Xiaomi) • First 28nm FD-SOI GPS sensor • 5 days of battery life (source: manufacturing company) • 35 hours of battery with the GPS mode turned ON • 2X to 5X more
Slide 27: FD-SOI: i.MX & i.MX 8 now available in NXP offering
FD-SOI i.MX 7 & i.MX 8, FD-SOI based product family, now available in NXP offering i.MX Platform using 28FDS Samsung process Only technology allowing such a large range of applications on a single platform 12/8/2016 27 SOITEC H1’17 RESULTS – DECEMBER 2016 Source: NXP
Slide 28: H1'17 Business trends
H1’17 Business trends Robust demand for RF/Power, bottom reached in 300mm Communication & Power Demand remains robust for RF-SOI products in Mobile applications and for Power-SOI products in Automotive Customers successfully developing products based on 300mm wafers for RF – multiple foundries and t
Slide 29: Agenda: Outlook
Agenda 1 H1’17 highlights 2 H1’17 financials 3 Business review: promising prospects in Electronics 4 Outlook 5 Appendix 12/8/2016 29 SOITEC H1’17 RESULTS – DECEMBER 2016
Slide 30: Outlook
Outlook FY’17 Guidance FY’17 Electronics sales expected at low single digit growth at constant exchange rates Further growth in 200mm thanks to solid demand in RF-SOI and Power-SOI 300mm business is expected to start recovering from the low point reached in Q2’17 with new products offsetting the ant
Slide 31: Agenda: Appendix
Agenda 1 H1’17 highlights 2 H1’17 financials 3 Business review: promising prospects in Electronics 4 Outlook 5 Appendix 12/8/2016 31 SOITEC H1’17 RESULTS – DECEMBER 2016
Slide 32: H1'17 - from Electronics EBITDA to net profit
H1’17 – from Electronics EBITDA to net profit 18.5 (10.2) 8.2 (5.9) 1.1 3.1 (0.2) 8.2 2.1 EBITDA Depreciation and Operating Net financial Income tax Net profit Net profit Net profit Group continuing other non cash income expense continuing discontinued share operations items continuing operations op
Slide 33: H1'17 cash flow statement
H1’17 cash flow statement H1’16 In million euros H1’17 restated Net cash generated by operating activities (2.3) 1.1 of which continuing activities 2.2 11.3 Net cash generated by / (used in) investing activities (2.2) 24.8 of which continuing activities (3.0) (3.8) Share capital increases and exerci
Slide 34: Consolidated balance sheet
Consolidated balance sheet 30th September 2016 30th Sept 31st March 30th Sept 31st March In million euros 2016 2016 In million euros 2016 2016 Goodwill and intangible assets 2.8 3.8 Share capital 60.6 23.1 Capitalized development projects 1.7 1.9 Share premium 888.1 780.4 Property, plant and equipme
Slide 35: Soitec technologies address large and growing markets
Soitec technologies address large and growing markets Communication & Power Digital RF-SOI Power-SOI FD-SOI Emerging SOI Mobile & consumer Data centers, cloud computing, End-markets Smartphones Automotive, industrial electronics, image sensors automotive, Internet of Things Radio-frequency High-volt
Slide 36: Thank you
Thank you Steve.babureck@soitec.com Steve Babureck, Investor Relations Officer