Slide 1: H1'24 Financial Results
H1’24 FINANCIAL RESULTS November 16th, 2023
Slide 2: Disclaimer
DISCLAIMER The Company’s business operations and financial position are described in the Company’s 2022-2023 Universal Registration Document (which notably includes the 2022-2023 Annual Financial Report) which was filed on June 14, 2023 with the French stock market authority (Autorité des Marchés Fi
Slide 3: Agenda
#01 #02 AGENDA H1'24 H1'24 4IGHLIGHTS FINANCIALS
Slide 4: H1'24 Highlights
1 H1’24 HIGHLIGHTS 2 © Soitec 2023. No copying or distribution permitted. PAGE 4
Slide 5: Revenue, EBITDA and operating cash flow
REVENUE EBITDA(2) OPERATING CASH FLOW(2) €M €M €M 35.5% margin -15% 471 Y/Y organic growth(1) 167 33.0% margin 126 401 132 -65% Y/Y 45 H1’23 H1’24 H1’23 H1’24 H1’23 H1’24 (1) At constant exchange rates and perimeter (2) From continuing operations 1 H1’24 HIGHLIGHTS 2 © Soitec 2023. No copying or dis
Slide 6: Mobile Communications, Automotive & Industrial, Smart Devices revenue
MOBILE AUTOMOTIVE SMART COMMUNICATIONS & INDUSTRIAL DEVICES Revenue - €M Revenue - €M Revenue - €M +31% -6% Y/Y organic Y/Y organic growth(1) growth(1) -24% 341 Y/Y organic 75 73 growth(1) 68 258 57 189 38 45 37 169 34 H1 152 37 31 Q2 28 89 23 Q1 H1’23 H1’24 H1’23 H1’24 H1’23 H1’24 (1) At constant e
Slide 7: H1'24 Highlights: Mobile Communications product portfolio
H1’24 Highlights Product Portfolio Sub-6GHz smartphones – RF Front-End Module, Wi-Fi, UWB Connect RF-SOI leadership in RFFE confirmed despite challenging market environment driven by inventory digestion Main drivers across the smartphone value chain: 5G Sub-6GHz 5G mmWave • High-end Flagship smartph
Slide 8: Connect POI and RF-GaN for 5G
4G / 5G 5G Wi-Fi & ANTENNAS Sub-6GHz mmWave UWB Soitec offers best-in-class RF Front End technologies: FRONT-END MODULES POWER • Connect RF-SOI based on our technology embedded in 100% of AMPLIFIER (PA) Power amplifiers, switches, antenna tuners, filters smartphones LOW NOISE Sub-6GHz mmWave AMPLIFI
Slide 9: Silicon content in smartphones, FY21 toward FY26
~40mm2 ~70mm2 High-end smartphones Connect RF-SOI >200mm2 Connect FD-SOI Connect POI ~30mm2 Connect RF-GaN ~70mm2 ~10mm2 ~50mm2 ~30mm2 ~60mm2 4G 5G Wi-Fi TOTAL 5G Filters 5G Wi-Fi 6 & TOTAL Sub-6GHz Sub-6GHz Sub-6GHz mmWave UWB FY21 TOWARD FY26 1 H1’24 HIGHLIGHTS 2 © Soitec 2023. No copying or distr
Slide 10: H1'24 Highlights: Automotive & Industrial product portfolio
H1’24 Highlights Product Portfolio Auto Power-SOI • Robust demand for 200mm sustained by increasing functional safety content per car and value creation Main drivers demonstration with customers Infotainment ADAS / Functional Safety • Accelerating demand for Battery Management System for Electric Ve
Slide 11: Auto content per vehicle, FY21 toward FY26
250 - 550mm2 ~125mm2 Auto Power-SOI 125 - 250mm2 Auto FD-SOI 55mm2 Auto SmartSiC TM 100mm2 Auto Power-GaN 2,000 - 2,500 mm2 ~1,300mm2 60 - 100mm2 65mm2 80 - 340 - 160mm2 460mm2 ~50mm2 ~160mm2 ~85mm2 Powertrain Infotainment ADAS TOTAL Powertrain Infotainment ADAS TOTAL & FuSa & FuSa FY21 TOWARD FY26
Slide 12: SmartSiC constant RON redesign, MOSFET 1200V
Constant RON redesign | MOSFET 1200V 200mm wafer Single Crystal SiC SmartSiC™ Gain Initial die size ~25mm² ~21mm² ~15% Gross dies / Wafer ~1,108* ~1,313* ~18%* Die process yield ~70% by 2024 ~74% by 2024 ~4% by 2024 Good dies / Wafer ~776 by 2024 ~969 by 2024 ~25% by 2024 *Edge Exclusion : 3mm + Scr
Slide 13: H1'24 Highlights: Smart Devices product portfolio
H1’24 Highlights Product Portfolio Smart FD-SOI • Increasing demand for FD-SOI based Low Power computing devices (FPGAs, MCUs) Main drivers • Adoption materializing with new product launches (Nordic nRF54H20 / Lattice CrossLinkU™-NX FPGA) and Smart Compute Smart Sense increasing wafer output from bo
Slide 14: FD-SOI is the answer toward high data rate
FD-SOI IS THE ANSWER FOR APPLICATIONS REQUIRING Edge AI SATCOM • Performance-on-demand • Battery-powered • Integrated RF TOWARD HIGH DATA RATE 5G Handset and infrastructure • Embedded NVM memories AR/VR 3 MARKET DRIVERS Radar • AI MCUs Harvesting ISP MCU ADAS • 5G • Automotive Industry 4.0 55nm 40nm
Slide 15: Manufacturing sites and capacity
RF-SOI RF-SOI POI SmartSiCTM Power-SOI FD-SOI 300mm Refresh Photonics-SOI Photonics-SOI Imager-SOI SOITEC BERNIN 1 - SOI 200 SOITEC BERNIN 2 - SOI 300 SOITEC BERNIN 3 - POI SOITEC BERNIN 4 – SmartSiCTM FRANCE – ~1Mwpy FRANCE – ~750Kwpy by end of FY25 FRANCE – ramping-up capacity to ~ 700kwpy FRANCE
Slide 16: Sustainability and CSR highlights
Percentage of Women increasing across the Group Eco-designing our products to make smart and energy- Executive Committee Senior Executives Group’s workforce efficient electronics growing into sustainable life experiences 40% 30% 40% by 2030 by 2030 by 2030 Inauguration of Bernin 4 fab to produce Sma
Slide 17: H1'24 Financials
1 2 H1’24 FINANCIALS © Soitec 2023. No copying or distribution permitted. PAGE 17
Slide 18: H1'24 financial key figures
P&L CASH FLOW BALANCE SHEET €401M SALES €45M OPERATING CASH FLOW (1) €1.4B EQUITY -15% Y/Y Organic Growth -65% vs. H1’23 +€98M vs. end of March 23 33.0% EBITDA (1) MARGIN €138MCAPEX (1)(2) €661M CASH POSITION -2.5 pts vs. H1’23 +10% vs. H1’23 -€127M vs. end of March 23 €2.24 EPS -€85M FREE FLOW CASH
Slide 19: Revenue by segment
Change Change €M H1’24 H1’23 as at constant FX reported and scope Mobile 258 341 -24% -24% Communications Automotive & 75 57 +31% +31% Industrial Smart Devices 68 73 -6% -6% Revenue 401 471 -15% -15% • RF-SOI wafers sales decreased, impacted by • Significant growth of Power-SOI wafers • Strong FD-SO
Slide 20: Gross margin
38.5% 38.0% 37.6% 35.6% 36.0% Gross margin (%) 35.4% 35.2% Total gross profit (€M) 33.8% 32.2% 31.8% 30.4% GROSS MARGIN TAILWINDS • Robust industrial performance • Favorable mix effect • Favorable FX effect 235 • Tight cost control • Inventory build to secure H2 acceleration 184 168 GROSS MARGIN HEA
Slide 21: Solid EBITDA margin at 33% of revenue
€M H1’24 H1’23 Change SOLID EBITDA MARGIN AT 33% OF Revenue 401 471 -15% REVENUE Gross profit 144 168 -14% as a % of revenue 36.0% 35.6% • Robust Gross margin Net R&D expenses (34) (29) +17% • Efficient cost control: SG&A -11% y/y as a % of revenue 8.4% 6.1% SG&A expenses (25) (28) • Investment in R
Slide 22: Negative free cash flow to prepare H2 acceleration
€M H1’24 H1’23 NEGATIVE FCF TO PREPARE H2 ACCELERATION EBITDA(1) 132 167 INCREASE IN WORKING CAPITAL Change in working capital (69) (26) Tax paid (19) (15) • Inventories increase in anticipation of higher H2 deliveries Net cash generated by operating activities(2) 45 126 • Decrease in trade payables
Slide 23: Equity, cash, debt and net cash
+€98M €1,403M -€127M €1,306M €788M €661M 31 March 2023 30 Sept 2023 31 March 2023 30 Sept 2023 SHAREHOLDERS’ EQUITY (€M) CASH AND CASH EQUIVALENTS (€M) +€34M -€161M €682M €140M €648M €-21M 31 March 2023 30 Sept 2023 31 March 2023 30 Sept 2023 GROSS FINANCIAL DEBT (€M) NET CASH / (DEBT) (€M) 1 2 H1’2
Slide 24: FY24 guidance
REVENUE EXPECTED TO SLIGHTLY DECLINE EBITDA MARGIN (1) CAPITAL EXPENDITURE MID-SINGLE DIGIT ORGANICALLY NOW EXPECTED AT ~35% EXPECTED AT ~€290M WEAKER-THAN-EXPECTED RESILIENT H1’24 PROFITABILITY SUPPORTS CAPACITY INVESTMENTS TO SUPPORT SMARTPHONE MARKET 35% EBITDA MARGIN GUIDANCE STRONG GROWTH THROU
Slide 25: Thank you
H1’24 Results THANK YOU
Slide 26: Appendix
© Soitec 2023. No copying or distribution permitted. PAGE 26
Slide 27: Consolidated income statement
€M H1’24 H1’23 Change Revenue 401 471 -15% - Cost of sales (257) (303) -15% Gross profit 144 168 -14% Gross R&D expenses before capitalization (65) (59) +10% - Gross R&D expenses after capitalization (50) (43) +15% - Subsidies, income tax credit and other revenue 16 14 +12% R&D expenses, net (34) (2
Slide 28: Cash flow statement and EBITDA reconciliation
€M H1’24 H1’23 Operating income 86 110 - Depreciation and amortization expenses 60 50 - Provisions, net (4) 5 - Other items (9) 2 EBITDA(1) 132 167 Change in working capital (69) (26) - Incl. inventories (65) (39) - Incl. trade receivables 106 28 - Incl. trade payables (104) 4 - Incl. others (5) (18
Slide 29: Consolidated balance sheet
ASSETS - in €M 30 Sept 2023 31 March 2023 LIABILITIES AND EQUITY - in €M 30 Sept 2023 31 March 2023 Intangible assets 143 128 Total equity 1,403 1,306 Tangible assets 843 705 Long-term financial debt 612 578 Other non-current assets 107 84 Provisions and other non- 72 80 current liabilities Deferred