Soitec Sa · EURONEXT:SOI
Soitec Sa — H1 2019 Earnings Presentation
35 slides from Soitec Sa's earnings presentation, Nov 28, 2018
Slide 1: Half Year'19 Results
Half Year’19 Results November 2018
Slide 2: Disclaimer
Disclaimer This document was prepared by Soitec (the “Company”) on November 28th, 2018 in connection with the announcement of the first half of fiscal year 2018-2019 (“FY’19”) results. This document is provided for information purposes only. It is public information only. The Company’s business oper
Slide 3: Agenda
Agenda Greetings 1 Paul Boudre, CEO 2 Rémy Pierre, CFO 3 Paul Boudre, CEO Q&A session 11/28/2018 3 Half Year’19 Results
Slide 4: H1'19 highlights – On track to deliver a very strong year
H1’19 highlights – On track to deliver a very strong year Business Manufacturing Financials ▪ H1’19 sales up 36% Y/Y at ▪ Capacity expansion in sync with ▪ Strong operating leverage constant exchange rates and customer demand ▪ 35.4% gross margin (vs. 32.4% in perimeter ▪ Bernin I annual capacity H1
Slide 5: H1'19 highlights – Solid momentum for SOI adoption
H1’19 highlights – Solid momentum for SOI adoption RF-SOI FD-SOI Innovation and M&A ▪ Nokia ReefShark chipset for 5G ▪ ARM/Samsung 1st embedded ▪ Leti and Soitec launched a new basestation to be built on RF-SOI MRAM (eMRAM) on 28FDS substrate innovation center to accelerate time to market of new ▪ G
Slide 6: H1'19 highlights – Strong financial performance
H1’19 highlights – Strong financial performance Accelerated growth in sales (Electronics) Strong improvement in gross margin +36% 32.4 35.4% at constant exchange rates and perimeter % as a % of sales in €m +43% 186.9 143.0 Gross profit in €m 66.1 46.3 H1'18 H1'19 H1'18 H1'19 Significant increase in
Slide 7: Agenda
Agenda Greetings 1 Paul Boudre, CEO 2 Rémy Pierre, CFO 3 Paul Boudre, CEO Q&A session 11/28/2018 7 Half Year’19 Results
Slide 8: H1'19: strong growth in sales
H1’19: strong growth in sales H1’18 Q1’19 Q2’19 H1’19 H1’19/H1’18 change H1’19 sales breakdown In million euros reported constant forex and perimeter1 2% 200mm wafer sales 93.9 50.9 51.2 102.0 +9% +13% 55% 300mm wafer sales 44.9 39.3 41.3 80.6 +80% +87% 43% Royalties and other revenues 4.2 1.7 2.5 4
Slide 9: H1'19 gross margin above 35%
H1’19 gross margin above 35% Sales 200 Gross margin 34.0% 32.4% 36.1% 35,4% in €m as % of sales 27.8% 28.6% 180 24.9% 22.3% 160 4.5% › Steady revenue growth over the last semesters 1.6% 81 140 › Bernin I running at full capacity 61 120 -0.8% › Bernin II capacity utilization from an average of 45 sli
Slide 10: Group consolidated P&L (1/2)
Group consolidated P&L (1/2) In €m H1’19 H1’18 Change Sales 186.9 143.0 +31% Gross profit 66.1 46.3 +43% As a % of sales 35.4% 32.4% R&D expenses: Gross R&D expenses (24.0) (22.3) +8% › Slight increase in Gross R&D costs › More than offset by higher prototype sales as well Prototype sales 5.6 3.7 +5
Slide 11: Group consolidated P&L (2/2)
Group consolidated P&L (2/2) In €m H1’19 H1’18 Change Current operating income 41.6 22.5 +85% Other operating income and expenses (0.0) (0.1) Operating income 41.6 22.5 +85% Net financial result: Net financial result (0.4) 4.5 › H1’18 benefitted from a €4.6m non recurring financial income (early rep
Slide 12: Strong H1'19 EBITDA of the continuing operations
Strong H1’19 EBITDA of the continuing operations (Electronics) 29.2% 32.8% % of sales 24.4% 15.6% 16.7% % of sales 61 €m 91 €m 35 36 41 FY'16 FY'17 FY'18 H1'18 H1'19 restated 11/28/2018 12 Half Year’19 Results
Slide 13: Cash generation from operating activities
Cash generation from operating activities H1’19 H1’18 Continuing Discounted Continuing Discounted In €m Total Total operations operations operations operations Net profit 35.9 (3.3) 32.6 24.4 (1.2) 23.2 Depreciation and amortization 10.6 - 10.6 9.3 - 9.3 Other items 14.9 1.8 16.7 1.2 (0.9) 0.3 EBITD
Slide 14: H1'19 cash generation
H1’19 cash generation Net change in cash = + € 54.6m +147.6 in €m +2.6 (38.5) 8.2 (0.3) 2.1 174.6 +8.1 Continuing activities 120.0 Discontinued activities Group (64.9) Cash and cash Net cash Net cash used in 2023 OCEANEs Loan repayment Cash used by Net impact of Cash and cash equivalents generated b
Slide 15: Simplified consolidated balance sheet
Simplified consolidated balance sheet 30 Sept. 31 March 30 Sept. 31 March In €m 2018 2018 In €m 2018 2018 Total equity 328.4 278.6 Intangible assets 27.2 8.2 Long-term financial debt 174.9 59.6 Tangible assets and other non current 280.2 207.3 Provisions and other non-current liabilities 15.0 11.4 a
Slide 16: Solid financial position
Solid financial position Equity reinforced by +€50m: > +€33m retained H1’19 earnings Shareholders’ equity Gross debt > +€20m recognized as equity €m €m out of the €150m OCEANE 2023 bonds issues > +€9m capital increase related 328 to share-based payments 194 279 > -€13m revaluation of hedge instrumen
Slide 17: Investment projects related to industrial sites
Investment projects related to industrial sites FY’19 capex planned at approx. €120m, including: Bernin I: increase capacity by adding 50 K wafers Bernin II: start extending the existing building with a view to later subsequently increase capacity by +150 K wafers Singapore: complete the FD-SOI 300
Slide 18: Agenda
Agenda Greetings 1 Paul Boudre, CEO 2 Rémy Pierre, CFO 3 Paul Boudre, CEO Q&A session 11/28/2018 18 Half Year’19 Results
Slide 19: Guidance for FY'19
Guidance for FY’19 Electronics Electronics Revenue growth EBITDA margin Capex Above 35% at Around 30% of constant exchange Approx. €120m sales rates and perimeter 11/28/2018 19 Half Year’19 Results
Slide 20: Q&A Half Year'19 Results
Q&A 11/28/2018 20 Half Year’19 Results
Slide 21: Appendix
Appendix 11/28/2018 21 Half Year’19 Results
Slide 22: Powerful innovation trends across technology markets
Powerful innovation trends across technology markets Mobility enhanced with new device features and 5G Autonomous and e-vehicles to set new standards Artificial intelligence already in our everyday life Augmented & Virtual reality, more than a gadget 11/28/2018 22 Half Year’19 Results
Slide 23: 4 strategic end markets
4 strategic end markets Cloud infrastructure Smartphones Internet of Things Automotive 11/28/2018 23 Half Year’19 Results
Slide 24: Soitec in the value chain
Soitec in the value chain Engineered substrates G S Si D Buried Oxide Base material SOI transistor Smart Cut TM technology IC Silicon die with millions of Starting transistors wafers SOI processed PCB wafer with multiple raw dice per wafer SOI substrates (Silicon on Insulator) 11/28/2018 24 Half Yea
Slide 25: Smartphones
Smartphones 3G/4G fuelling current growth 3D image sensors initial adoption for facial FD-SOI value proposition recognized 5G around the corner recognition – use cases for AR/VR for several critical applications Image signal processors 4G 5G Facial recognition Artificial intelligence RF-SOI for Ante
Slide 26: Automotive
Automotive Power-SOI to benefit from structural semi FD-SOI to ramp for ADAS FD-SOI chips ramping up content increase Development in radars for infotainment application processors Multimedia application processors Power-SOI for Super computing chips gate drivers Power-SOI for ASICs for radars Class
Slide 27: Automotive – View from a leading car maker
Automotive – View from a leading car maker FD-SOI value proposition (AUDI) › Key benefits › Ultra low voltage operation Down to 0.4 V by corner trimming / bias trimming > 70% power reduction possible › Performance gain By corner trimming / bias trimming « more bang for the buck » › Dynamic switching
Slide 28: Internet of Things
Internet of Things FD-SOI offers the best value proposition for FD-SOI for consumer applications FD-SOI for industrial applications edge-computing and ultra-low power applications FD-SOI will now address Speed performance those areas GPS for smartwatches Smart cities Cloud Ear buds Edge Very edge Sm
Slide 29: Infrastructure for cloud, mobile and satellite
Infrastructure for cloud, mobile and satellite FD-SOI Photonics-SOI For crypto-currency mining For datacenters optical transceivers FD-SOI For broadband communications in Low Earth Orbit (LEO) satellites FD-SOI For base stations 11/28/2018 29 Half Year’19 Results
Slide 30: Substrate materials at the base of electronics innovation
Substrate materials at the base of electronics innovation Services Final Product Software Hardware Semiconductor device Substrates 11/28/2018 30 Half Year’19 Results
Slide 31: Towards more partnerships in our innovation model
Towards more partnerships in our innovation model Today – A global R&D network Tomorrow – More partnerships with OEMs Soitec leading industry-wide consortium (+25 companies) to accelerate FD-SOI adoption in critical automotive applications 11/28/2018 31 Half Year’19 Results
Slide 32: Soitec footprint to expand in every end market
Soitec footprint to expand in every end market Smartphones Automotive >100 mm² >200 mm² ~100 80mm² ~2020mm² 2017 2022 2017 2022 Cloud infrastructure Internet of Things >400 mm² ~50 mm² ~8080mm² <10 mm² 2017 2022 2017 2022 11/28/2018 32 Half Year’19 Results Source: Soitec estimates, 2017
Slide 33: Strong business trends support our FY22 TAM outlook
Strong business trends support our FY22 TAM outlook Bottom-up demand scenarios for Soitec addressable markets ~5.0M >1 M wafers* in 2017 wafers* ~3.5M wafers* Digital ~2.2M wafers* Digital Digital Comm. Comm. Comm. & Power & Power & Power Low Mid High 11/28/2018 33 Half Year’19 Results * 300mm-diame
Slide 34: Net profit from discontinued operations
Net profit from discontinued operations Directly reported at the bottom of consolidated P&L In €m H1’19 H1’18 Sales 0.1 0.8 Expenses (0.4) (0.3) Current operating income/(loss) (0.4) (0.5) Other operating income and expenses (0.7) (0.8) Operating income/(loss) (1.0) (0.3) Net financial income/(expen
Slide 35: Thank you
Thank you Follow us on: Soitec @Soitec_FR / @Soitec_EN Soitec For more information, visit us at: www.soitec.com 11/28/2018 35 Half Year’19 Results