Slide 1: FY 2025 Results Presentation
FY 2025 Results Presentation 28 May 2026
Slide 2: Disclaimer
IQE plc Disclaimer This presentation has been prepared by IQE plc solely for information purposes and should Although IQE plc believes that the expectations, estimates and projections constituting any not be considered to be an offer or solicitation to buy, sell or subscribe for any securities, forw
Slide 3: Welcome
Welcome Jutta Meier Chief Executive Officer
Slide 4: At the heart of multiple global megatrends
IQE plc At the heart of multiple global megatrends Geopolitics Semiconductor packaging Defence spending AI supercycle Space technology IQE plc | FY 2025 Results Presentation 4
Slide 5: IQE - The world's leading epitaxial wafer supplier
IQE plc IQE - The world’s leading epitaxial wafer supplier • The only pure play epitaxy foundry with a unique global footprint • 35+ years of unrivalled expertise across the broadest product portfolio in the industry UK WA MA NC • Enabling the world’s most advanced supply TW chains in the highest-gr
Slide 6: Uniquely positioned in the global value chain
IQE plc Uniquely positioned in the global value chain Epiwafer production Substrates Foundries Fabless Device makers Base materials Device fabrication Design Device manufacture IQE plc | FY 2025 Results Presentation 6
Slide 7: Our key markets
IQE plc Our key markets AI and Communications Consumer Aerospace and Automotive and Data centres Infrastructure Electronics Defence Industrial • Optical links for • Wireless and optical • Mobile handset • Infrared sensing • Automotive power data centres communication connectivity and imaging managem
Slide 8: IQE at the core of Artificial Intelligence
IQE plc IQE at the core of Artificial Intelligence IQE’s complete suite of materials underpin the AI ecosystem Compound Enabling the collection, Enabling high-speed efficient semiconductors are transfer and computation of data communications and critical to AI architecture masses of data on an overc
Slide 9: Business review
Business review FY 2025 Results Presentation
Slide 10: FY 2025 | Strong second half acceleration
IQE plc FY 2025 | Strong second half acceleration H1 headwinds H2 improvement Global macro and tariff uncertainty Easing of tariff uncertainty Q4 improvement with impact offset by Wireless market softness photonics demand Customer inventory builds Inventory normalisation Military & defence funding d
Slide 11: FY 2025 revenue: £97.3m
IQE plc FY 2025 revenue: £97.3m Total Photonics Total Wireless Revenue Up Revenue Down £57.1m 15% £40.1m 40% year-on-year year-on-year • Continued growth in AI and data centre-related markets • Uncertain macroeconomic conditions in H1 • Funding releases for certain US military and defence • Softness
Slide 12: FY 2025 financial highlights
IQE plc FY 2025 financial highlights Adj. EBITDA1,2 Adj. operating cashflow2 Adj. net debt3 Cash £’m £’m 8.1 11.2 Cash and cash £(31.5m) equivalents of 6.1 £15.7m as at at 31 December 2025 31 December 2025 7% 3.2 3% IQE will receive net FY2024 FY2025 FY2024 FY2025 cash inflows of £27.9m after receip
Slide 13: 2025 | Strategic progress
IQE plc 2025 | Strategic progress • Accelerated demand across • Establishment of long-term customer base due to rapid strategic foundations and growth in AI-driven hyperscale strengthening global supply data centres, alongside growth in chains in next-generation GaN mobile handsets, infrastructure p
Slide 14: Operational updates
IQE plc Operational updates • Continued focus on fiscal discipline and tight controls over discretionary spending. • Ongoing portfolio optimisation to ensure existing asset base is fully focused on value creation across core customers and technologies. • Operational excellence driving yield improvem
Slide 15: Conclusion of Strategic Review
IQE plc Conclusion of Strategic Review • A strategic investment from MACOM and other existing shareholders, raising £81 million • Long term agreements also signed with MACOM, providing security, visibility and stability for IQE • Net proceeds to repay RCF, support working capital and ongoing strateg
Slide 16: Current trading and outlook
IQE plc Current trading and outlook • Q1 2026 trading in line with management expectations, with strong demand across all core segments • Accelerated demand for InP solutions supporting data centre and AI infrastructure, expected to be a material growth driver in 2026 and beyond • Ongoing strength i
Slide 17: Looking ahead
IQE plc Looking ahead Delivering on Strategically A transformed fundamentals, positioned at IQE, uncertainty providing the centre of behind it with world-class the highest- strong platform technology and growth global to invest customer sectors experience IQE plc | FY 2025 Results Presentation 17
Slide 18: Appendix
Appendix
Slide 19: Summary financials
IQE plc Summary financials £’million FY 2025 FY 2024 Revenue 97.3 118.0 Sales, general & administrative costs (27.8) (30.0) Adjusted EBITDA1 3.2 8.1 Adjusted LBIT (21.0) (18.4) Reported LBIT (30.1) (33.0) Reported loss before tax (37.0) (36.9) Reported loss after tax (36.7) (38.2) Adjusted net cashf
Slide 20: Adjusted income statement items
IQE plc Adjusted income statement items 2025 2024 £'million Cash Non-cash Total Total Share based payments - 3.6 3.6 3.2 CEO recruitment/ - - - 0.7 severance Photonics CGU impairment - 8.0 8.0 - Wireless CGU impairment - - - 3.1 Restructuring 2.6 (5.1) (2.5) 7.6 Total 2.6 6.4 9.1 14.6 IQE plc | FY 2
Slide 21: Balance sheet
IQE plc Balance sheet As at 31 December 2025 £’million FY 2025 FY 2024 Intangible assets 17.2 29.0 Property, plant & equipment 95.3 113.7 Right of use assets 38.1 42.2 Deferred tax asset 0.3 0.0 Total current assets 62.4 62.2 Current liabilities* (30.0) (35.6) Bank borrowings due within 1 year (26.8
Slide 22: Net debt bridge
IQE plc Net debt bridge - (£5.0m) £6.1m (£10.0m) (£3.1m) £5.0m (£15.0m) (£18.8m) (£7.7m) (£20.0m) (£5.0m) (£25.0m) £0.1m (£3.3m) (£30.0m) £0.8m (£31.5m) (£5.7m) (£35.0m) IQE plc | FY 2025 Results Presentation 22
Slide 23: Cashflow bridge
IQE plc Cashflow bridge £20.0m £17.3m £0.1m £15.7m £15.0m (£0.3m) £6.1m £10.0m £1.9m (£4.3m) £5.0m £4.7m (£5.0m) - (£3.3m) £4.1m (£5.0m) (£5.7m) (£10.0m) IQE plc | FY 2025 Results Presentation 23
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