Slide 1: FY24 Results
FY24 RESULTS Paris | May 23 , 2024 rd
Slide 2: Disclaimer
DISCLAIMER This document is provided by Soitec This document contains summary situation, as well as rising inflation, The Company does not undertake Neither the Company nor any other (the “Company”) for information information and should be read may result in greater impacts than any obligation to u
Slide 3: Agenda
AGENDA #01 CEO VISION #02 STRATEGY INNOVATION #03 Pierre Barnabé Steve Babureck Christophe Maleville #04 #05 #06 MOBILE AUTOMOTIVE SMART COMMUNICATIONS & INDUSTRIAL DEVICES Jean-Marc Le Meil Emmanuel Sabonnadière René Jonker #07 #08 OPERATIONS FINANCE Cyril Menon Léa Alzingre Q&A #09 CEO WRAP-UP Pie
Slide 4: CEO Vision
01 1 CEO VISION 2 3 4 CEO VISION 5 Pierre Barnabé 6 7 8 9 © Soitec 2024. No copying or distribution permitted. PAGE 4
Slide 5: CEO Key Messages
CEO KEY MESSAGES MID-TERM AMBITION FY24 results reflect ongoing Strengthening our Clear vision toward inventory correction in the sustainable value ~$2B revenue smartphone supply chain creation model ~40% EBITDA(1) margin (1) The EBITDA represents operating income before depreciation, amortization,
Slide 6: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS REVENUE GROWTH IMPACTED BY SMARTPHONE INVENTORY CORRECTION RESILIENT PROFITABILITY AND SUSTAINED LEVEL OF INVESTMENT REVENUE EBITDA(2) OPERATING CASH FLOW -10% 36% Y/Y organic margin growth(1) 34% €1,089M margin €978M €391M €332M €262M €165M FY23 FY24 FY23 FY24 FY23 FY24 (1
Slide 7: FY24 Revenue by Division
FY24 REVENUE BY DIVISION MOBILE COMMUNICATIONS AUTOMOTIVE & INDUSTRIAL SMART DEVICES POI acceleration and FD-SOI penetration Strong growth in Automotive & Industrial FD-SOI growing penetration offset by partially offset weakness in RF-SOI driven by supported by Power-SOI, FD-SOI and Photonics-SOI (t
Slide 8: FY25 Outlook
FY25 OUTLOOK Stable revenue EBITDA margin(1) Capital expenditure expected on an expected at ~35% expected at ~€250M organic basis (1) The EBITDA represents operating income before depreciation, amortization, impairment of non-current assets, non-cash items relating to share-based payments, provision
Slide 9: FY25 and Beyond: Sustainable Business Model
FY25 AND BEYOND SUSTAINABLE BUSINESS MODEL TO ADAPT TO A CHALLENGING ENVIRONMENT MACRO TRENDS MACROECONOMIC VOLATILITY GEOPOLITICAL UNCERTAINTY CLIMATE CHANGE #01 #02 #03 STEADY INVESTMENT DIVERSIFICATION STRENGTHENING MARKET TRENDS IN INNOVATION AND OF CUSTOMER CUSTOMER INTIMACY AGILE CAPACITY PORT
Slide 10: Building a Diverse Product Portfolio
New materials BUILDING A DIVERSE PRODUCT PORTFOLIO TO FUEL OUR DIVISIONS VALUE CREATION InP PREPARING EXPANSION ACROSS 3 STRATEGIC END MARKETS SmartGaN BEYOND Power-GaN RF-GaN EXPANDING INTO SmartSiCTM COMPOUND SEMICONDUCTORS POI Photonics-SOI Imager-SOI STRENGTHENING SOI LEADERSHIP Power-SOI FD-SOI
Slide 11: Leveraging Product Portfolio to Diversify Customer Base
New materials LEVERAGING OUR EXPANDING PRODUCT PORTFOLIO TO DIVERSIFY OUR CUSTOMER BASE InP BROADENING & STRENGTHEN CUSTOMER INTIMACY CUSTOMER BASE SmartGaN FABLESS Power-GaN RF-GaN STRONG INNOVATION SmartSiC TM POWERHOUSE TO ADDRESS A DIVERSE ECOSYSTEM AND ONBOARD NEW POI CUSTOMERS Photonics-SOI Im
Slide 12: Unique and Sustainable Business Model
RS CO DE MM HOL CUSTOMERS UN RE IT A I ES SH NS TIO C A I SM UN AR MM T DE CO UNIQUE AND VICE MOBILE SU ST SUSTAINABLE FOUNDRIES AI S FABLESS N AB S U P PLIER S LE INNOVATION BY OPERATIONS BUSINESS MODEL D ES IG N TO EXECUTE ON YEES OUR VISION PLO &P AR EM AU TN TO L M OTIV I A TR ER E & INDUS S ID
Slide 13: Sustainable Value Creation Model
WE CONTINUE TO DEPLOY OUR SUSTAINABLE VALUE CREATION MODEL Rating upgrade - May 2024 INDUSTRY-LEADING SUSTAINABLE INNOVATION INCLUSIVE AND INSPIRING GOVERNANCE PRACTICES AND OPERATIONS COMPANY CULTURE & STANDARDS WATER MANAGEMENT DIVERSITY ETHICS Employees having completed the Water consumption per
Slide 14: Leveraging Strong Growth Across 3 End Markets
A CLEAR VISION TOWARD ~$2B REVENUE LEVERAGING STRONG GROWTH ACROSS OUR 3 END MARKETS $1.1B REVENUE SMART DEVICES 21% 17% AUTOMOTIVE & INDUSTRIAL 62% MOBILE COMMUNICATIONS FY24 1 CEO VISION 2 3 4 5 6 7 8 9 © Soitec 2024. No copying or distribution permitted. PAGE 14
Slide 15: Mobile Communications Key Drivers
A CLEAR VISION TOWARD ~$2B REVENUE LEVERAGING STRONG GROWTH ACROSS OUR 3 END MARKETS MOBILE COMMUNICATIONS KEY DRIVERS $1.1B RF-SOI and FD-SOI to benefit from smartphone REVENUE market growth and innovation FD-SOI traction for mmWave 21% Increasing high end smartphone adoption, 17% including in Emer
Slide 16: Automotive & Industrial Key Drivers
A CLEAR VISION TOWARD ~$2B REVENUE LEVERAGING STRONG GROWTH ACROSS OUR 3 END MARKETS AUTOMOTIVE & INDUSTRIAL KEY DRIVERS $1.1B Growing semiconductor content driven by more REVENUE digitalization and electrification Steady increase in both EV and SiC penetration 21% FD-SOI to benefit from increasing
Slide 17: Smart Devices Key Drivers
A CLEAR VISION TOWARD ~$2B REVENUE LEVERAGING STRONG GROWTH ACROSS OUR 3 END MARKETS SMART DEVICES KEY DRIVERS $1.1B Edge AI for IoT supports FD-SOI penetration to REVENUE optimize balance between computing power and energy efficiency 21% GenAI computing power capabilities exponential growth 17% Dev
Slide 18: Clear Vision Toward ~$2B Revenue
A CLEAR VISION TOWARD ~$2B REVENUE ~$2B LEVERAGING STRONG GROWTH REVENUE ACROSS OUR 3 END MARKETS ~20% ~20% ~30% $1.1B SMART ~25% REVENUE ~50% DEVICES AUTOMOTIVE & INDUSTRIAL 21% 17% MOBILE COMMUNICATIONS ~55% 62% FY24 MID-TERM AMBITION 1 CEO VISION 2 3 4 5 6 7 8 9 © Soitec 2024. No copying or distr
Slide 19: Clear Vision Toward ~40% EBITDA Margin
A CLEAR VISION TOWARD ~40% EBITDA MARGIN EBITDA MARGIN IMPROVEMENT DRIVERS ~40% EBITDA MARGIN(1) (@1.10€/$) Operating leverage Product mix 34% EBITDA MARGIN(1) ASP Innovation FY24 MID-TERM (1) The EBITDA represents operating income before depreciation, amortization, impairment of non-current assets,
Slide 20: CEO Key Messages
CEO KEY MESSAGES MID-TERM AMBITION FY24 results reflect ongoing Strengthening our Clear vision toward inventory correction in the sustainable value ~$2B revenue smartphone supply chain creation model ~40% EBITDA(1) margin (1) The EBITDA represents operating income before depreciation, amortization,
Slide 21: Strategy
02 1 2 S T R AT E G Y 3 4 5 STRATEGY Steve Babureck 6 7 8 9 © Soitec 2024. No copying or distribution permitted. PAGE 21
Slide 22: 3 Powerful Engines to Drive Addressable Market Expansion
3 POWERFUL ENGINES TO DRIVE SOITEC ADDRESSABLE MARKET EXPANSION BY 2030 SOITEC ADDRESSABLE MARKET >x3 BY 2030 (vs 2023) SEMICONDUCTOR INCREASING SOITEC EXPANDING MARKET GROWTH ADOPTION OF PRODUCT AND ENGINEERED SUBSTRATES TECHNOLOGY PORTFOLIO Source: Yole, SEMI, Soitec estimates. 1 2 S T R AT E G Y
Slide 23: Technology Megatrends Sustain Demand for Semiconductors
TECHNOLOGY MEGATRENDS CONTINUE TO SUSTAIN MASSIVE DEMAND FOR SEMICONDUCTORS MOBILE CONNECTIVITY ARTIFICIAL INTELLIGENCE ENERGY EFFICIENCY 5G enables significant Exponential growth of LLM parameters Global electricity demand requires data traffic growth enables breakthrough AI applications energy sav
Slide 24: Engineered Substrates Increasing Adoption
ENGINEERED SUBSTRATES INCREASING ADOPTION HIGHER PERFORMANCE, LOWER ENERGY CONSUMPTION, HIGHER INTEGRATION AND LOWER COST OF OWNERSHIP ENGINEERED DEVICE SYSTEM SUBSTRATES PHYSICS VALUE PROPOSITION BENEFITS BROADBAND CONNECTIVITY LOWER LOSSES ENHANCED USER EXPERIENCE HIGHER POWER DENSITY MOBILE LONGE
Slide 25: Addressable Market to Grow ~20% CAGR 2023-2030
SOITEC ADDRESSABLE MARKET TO GROW AT ~20% CAGR BETWEEN 2023 AND 2030 >12M wafers 200mm EQUIVALENT FD-SOI Photonics-SOI ~15% SMART DEVICES Imager-SOI >x3 Power-SOI FD-SOI [35%-40%] AUTOMOTIVE & INDUSTRIAL SmartSiCTM SmartGaN ~4M wafers 200mm EQUIVALENT RF-SOI FD-SOI ~15% MOBILE COMMUNICATIONS POI [45
Slide 26: Addressable Market: SOI and Compounds
SOITEC ADDRESSABLE MARKET TO GROW AT ~20% CAGR BETWEEN 2023 AND 2030 >12M wafers 200mm EQUIVALENT POI >x3 ~30% ~30% SmartSiCTM COMPOUNDS CAGR RF-GaN SmartGaN ~4M wafers RF-SOI 200mm EQUIVALENT FD-SOI ~70% ~15% Power-SOI SOI CAGR ~15% Photonics-SOI COMPOUNDS Imager-SOI ~85% SOI 2023 MID-TERM AMBITION
Slide 27: Strengthen Leadership in SOI Across 3 End Markets
SOITEC ADDRESSABLE MARKET TO TRIPLE BY 2030 STRENGTHEN OUR LEADERSHIP IN SOI ACROSS OUR 3 STRATEGIC END MARKETS SOI MOBILE COMMUNICATIONS AUTOMOTIVE & INDUSTRIAL STRENGTHEN LEADERSHIP SMART DEVICES 1 2 S T R AT E G Y 3 4 5 6 7 8 9 © Soitec 2024. No copying or distribution permitted. PAGE 27
Slide 28: Expansion into Compound Semiconductors
SOITEC ADDRESSABLE MARKET TO TRIPLE BY 2030 CONTINUE SUCCESSFUL EXPANSION INTO COMPOUND SEMICONDUCTORS SOI POI SiC GaN MOBILE COMMUNICATIONS AUTOMOTIVE & INDUSTRIAL STRENGTHEN EXPAND LEADERSHIP LEADERSHIP SMART DEVICES 1 2 S T R AT E G Y 3 4 5 6 7 8 9 © Soitec 2024. No copying or distribution permit
Slide 29: New Engineered Substrates and Strategic Partnerships
SOITEC ADDRESSABLE MARKET TO TRIPLE BY 2030 EXPAND LEADERSHIP WITH NEW ENGINEERED SUBSTRATES AND STRATEGIC PARTNERSHIPS SOI POI SiC GaN New Engineered Substrates MOBILE COMMUNICATIONS AUTOMOTIVE & INDUSTRIAL STRENGTHEN LEADERSHIP EXPAND LEADERSHIP SMART DEVICES NEW MARKETS 1 2 S T R AT E G Y 3 4 5 6
Slide 30: Strategy Key Messages
STRATEGY KEY MESSAGES 3 Powerful megatrends Soitec addressable Strengthening SOI leadership support Soitec organic growth market to grow and expanding into ~20% CAGR toward 2030 5G, AI and Energy efficiency compound semiconductors from ~4M to >12M wafers(1) (1) in 200mm equivalent. 1 2 S T R AT E G
Slide 31: Innovation
03 1 2 3 I N N O VAT I O N 4 INNOVATION Christophe Maleville 5 6 7 8 9 © Soitec 2024. No copying or distribution permitted. PAGE 31
Slide 32: Leveraging Materials Sciences to Enable Unique Applications
LEVERAGING MATERIALS SCIENCES TO ENABLE UNIQUE APPLICATIONS Enable NEW PROPERTIES, ENHANCED Leverage Develop Design PERFORMANCE, IMPROVED MATERIALS TECHNOLOGY ENERGY CONSUMPTION ENGINEERED INTRINSIC SOLUTIONS SUBSTRATES PROPERTIES • SOI product portfolio Connectivity • Anything-on-Anything (active l
Slide 33: Balancing Short Term Innovation and Future Opportunities
BALANCING SHORT TERM INNOVATION 20% AND FUTURE OPPORTUNITIES 80% PRODUCTS UNDER DEVELOPMENT TO SUPPORT OUR BP TECHNOLOGIES AND PRODUCTS INCUBATION Addressing short and medium-term To support future opportunities differentiations for our customers and growth INCREMENTAL INNOVATION DISRUPTIVE INNOVATI
Slide 34: Anything-on-Anything - Soitec Innovation DNA
ANYTHING-ON-ANYTHING - SOITEC INNOVATION DNA BEST ACTIVE LAYER(S) ON FUNCTIONAL SUBSTRATE ACTIVE LAYER Silicon Piezo SiC InP GaN GaAs Ge Others Diamond Silicon GaxOy or SOI 2D materials Sapphire SUBSTRATE SiC or polySiC GaAs Device wafer 1 2 3 I N N O VAT I O N 4 5 6 7 8 9 © Soitec 2024. No copying
Slide 35: Enabling New Properties for Specific Applications
ANYTHING-ON-ANYTHING - SOITEC INNOVATION DNA ENABLING NEW PROPERTIES FOR SPECIFIC APPLICATIONS ACTIVE LAYER Silicon Piezo SiC InP GaN GaAs Ge Others Low power Better performance Co-integration Co-integration Power electronics Transistor isolation High performance PA performance Co-integration Silico
Slide 36: Innovation at Soitec: Skilled People and IP Filing
INNOVATION AT SOITEC 250 SKILLED PEOPLE AND DYNAMIC IP FILING >250 NEW PATENTS FILED RESEARCHERS & INVENTORS OVER THE LAST 5 YEARS 377 INPI 2023 >25% TOP FRENCH PhDs PATENT APPLICANTS 391 EXPANDING TEAM GLOBALLY 1,574 #1 283 MID-SIZE COMPANY >14% #25 OF OUR REVENUE INVESTED IN 285 INNOVATION IN FY24
Slide 37: SmartSiC Roadmap
SmartSiC ROADMAP TM Qualification Gen 1 in 150mm Prototyping Device and System High Volume Manufacturing Production / Customer validation SmartSiCTM Performance Qualification 200mm Prototyping Device and System High Volume Manufacturing Low resistivity SmartSiCTM Advanced Gen 2 Qualification Develop
Slide 38: SmartGaN - Solution for Future RF & Power Devices
SmartGaN - SOITEC SOLUTION FOR FUTURE RF & POWER DEVICES MAJOR SYNERGIES BETWEEN POWER AND RF ENABLE PARALLEL DEVELOPMENT Optimized GaN epi stack GaN seed layer Pilot production X Handle wafer POWER expected in 2027 SmartGaN 1200V Lateral SmartGaN applications INCUBATOR TO ACCELERATE OBC / DC-DC con
Slide 39: Innovation Key Messages
INNOVATION KEY MESSAGES INNOVATION ENABLES SOITEC INNOVATION SOITEC INNOVATION PRODUCT PORTFOLIO ROADMAP MODEL EXPANSION Leveraging materials science Speed and strategic expertise to deliver value at partnerships are key to gain Strengthening SOI leadership system level market share and delivering o
Slide 40: Mobile Communications
04 1 2 3 4 MOBILE COMMUNICATIONS Jean-Marc Le Meil M O B I L E C O M M U N I C AT I O N S 5 6 7 8 9 © Soitec 2024. No copying or distribution permitted. PAGE 40
Slide 41: Converging Connectivity and Intelligence Revolutions
CONVERGING THE CONNECTIVITY AND INTELLIGENCE REVOLUTIONS MOBILE & CONSUMER SMART CONNECTIVITY INFRASTRUCTURE 5G ADVANCED & Wi-Fi 6 / 6E / 7 SMART TRANSPORTATION FIXED WIRELESS ACCESS Enhanced mobile More connected, safer and & 5G INFRASTRUCTURE broadband experience autonomous vehicles Enabling effic
Slide 42: Smartphone Shipments Flattening, 5G Adoption on Track
GLOBAL SMARTPHONES SHIPMENTS ARE FLATTENING Total Smartphones (M units) 5G ADOPTION IS ON TRACK 5G Smartphones (M units) 1,373 1,360 1,281 1,210 ~1,230 1,167 ~1,200 ~975 ~820 713 612 547 250 19 2019 2020 2021 2022 2023 2024e 2025e Source: IDC, Soitec estimates. 1 2 3 4 M O B I L E C O M M U N I C AT
Slide 43: Mobile Communications: POI and FD-SOI Adoption
MOBILE COMMUNICATIONS POI ACCELERATION AND FD-SOI ADOPTION PARTIALLY RF-SOI embedded in 100% of 5G smartphones OFFSETTING RF-SOI SHORT-TERM INVENTORY CORRECTION 5G CONNECTIVITY ENHANCEMENT BATTERY POWER SAVING OPTIMIZED FOOTPRINT WITH RFFE INTEGRATION 4G / 5G 5G Wi-Fi & 6G SUB- Sub-6GHz mmWave UWB 2
Slide 44: Mobile Content Opportunity
~40mm2 MOBILE CONTENT OPPORTUNITY High-end smartphones ~50mm2 Connect RF-SOI Connect FD-SOI Connect POI >180mm2 ~30mm2 ~70mm2 ~10mm2 ~50mm2 ~30mm2 ~60mm2 4G 5G Wi-Fi TOTAL 5G Filters 5G Wi-Fi 6/6E/7 TOTAL Sub-6GHz Sub-6GHz Sub-6GHz mmWave & UWB FY21 TOWARD FY26 1 2 3 4 M O B I L E C O M M U N I C AT
Slide 45: Vision for the Mobile Communications Division
VISION FOR THE MOBILE COMMUNICATIONS DIVISION MOBILE COMMUNICATIONS DIVISION TODAY MID-TERM AMBITION MAINTAIN #1 POSITIONING IN SOI VALUE CHAIN LEADERSHIP POSITION IN SOI SUPPLY CHAIN INCREASING PREMIUM AND SUB-PREMIUM SMARTPHONE PENETRATION >90% REVENUE FROM SMARTPHONE MARKET AI TO ACCELERATE SMART
Slide 46: Mobile Communications Key Messages
MOBILE COMMUNICATIONS KEY MESSAGES Smartphone market Strong customer intimacy Increasing adoption, recovering with greater to strengthen Soitec unique standardization premium sales expected, position in the mobile and diversification leading to semiconductor communications market beyond Smartphone c
Slide 47: Automotive & Industrial
05 1 2 3 4 5 AUTOMOTIVE & INDUSTRIAL Emmanuel Sabonnadière AUTOMOTIVE & INDUSTRIAL 6 7 8 9 © Soitec 2024. No copying or distribution permitted. PAGE 47
Slide 48: Enabling Digitalization and Electrification
ENABLING DIGITALIZATION AND ELECTRIFICATION IN AUTOMOTIVE & INDUSTRIAL AUTOMOTIVE AUTOMOTIVE GREEN INDUSTRY DIGITALIZATION ELECTRIFICATION INFOTAINMENT POWERTRAIN CHARGERS & ENERGY SUPPLY Increased connectivity and xEV penetration accelerates Increased demand for chargers and advanced HMI for enhanc
Slide 49: Automotive Driven by Robust Megatrends
AUTOMOTIVE DRIVEN BY 2 ROBUST MEGATRENDS AUTOMOTIVE DIGITALIZATION AND ELECTRIFICATION DRIVING SEMICONDUCTOR CONTENT GROWTH Accelerating adoption of ADAS (Mu) Semi content ($/car) to double in 10Y LV sales without ADAS LV sales with ADAS Powertrain ADAS Infotainment & safety Other ~1,100 ~100 ~90 ~2
Slide 50: Bringing Value at the Device Level
BRINGING VALUE AT THE DEVICE LEVEL POWER-SOI A COMPREHENSIVE PRODUCT PORTFOLIO Enables superior performance over bulk silicon TO ENABLE THE AUTOMOTIVE REVOLUTION AND TRANSITION TO RENEWABLE ENERGIES >10% SYSTEM COST REDUCTION & EFFICIENCY IMPROVEMENT HIGHER ROBUSTNESS, NOISE IMMUNITY AND OPERATING T
Slide 51: Vision for the Automotive & Industrial Division
VISION FOR THE AUTOMOTIVE & INDUSTRIAL DIVISION AUTOMOTIVE & INDUSTRIAL DIVISION TODAY MID-TERM AMBITION OVER-PERFORMING THE MARKET ROBUST GROWTH Enabling a once-in-a-century automotive driven by accelerating xEV penetration and increasing transformation demand for Green Industry power solutions Pow
Slide 52: New SmartSiC Partnership
NEW SMARTSIC PARTNERSHIP TM X-FAB AND SOITEC TO OFFER SMARTSICTM FOR POWER DEVICES MANUFACTURING TO MULTIPLE FABLESS CUSTOMERS INTERNATIONALLY STMicroelectronics x Soitec cooperate Top 5 on SmartSiCTM substrate manufacturing technology Agreement with fast-growing Power Semi player, Challengers 1st p
Slide 53: Automotive Content Opportunity
AUTOMOTIVE CONTENT OPPORTUNITY 250 - 2,000 - 2,500 550mm2 mm2 High-end cars Auto Power-SOI ~125mm2 Auto FD-SOI Auto SmartSiCTM 125 - 250mm2 55mm2 ~1,300mm2 60 - 100mm2 65mm2 80 - 340 - 160mm2 460mm2 ~50mm2 ~160mm2 ~85mm2 Powertrain Infotainment ADAS TOTAL Powertrain Infotainment ADAS TOTAL & FuSa &
Slide 54: Automotive & Industrial Key Messages
AUTOMOTIVE & INDUSTRIAL KEY MESSAGES Powerful megatrends Strong customer intimacy to A comprehensive product - Automotive Digitalization deliver cutting-edge solutions portfolio with differentiated and Electrification - and increase adoption across value proposition to address to support sustainable
Slide 55: Smart Devices
06 1 2 3 4 5 6 SMART DEVICES René Jonker SMART DEVICES 7 8 9 © Soitec 2024. No copying or distribution permitted. PAGE 55
Slide 56: Accelerating AI from the Cloud to the Edge
ACCELERATING AI FROM THE CLOUD TO THE EDGE SENSORS EDGE AI CLOUD AI SMART DEVICES IoT DEVICES Voice & face recognition Wearable devices, Smart home, 3D image sensor Security cameras, Retail DATA CENTERS & INFRASTRUCTURE High-bandwidth NEXT-GEN SENSORS INDUSTRY Connections for AI & ML LIDARs Industry
Slide 57: Traction from Edge AI and Optical Interconnects
TRACTION FROM EDGE AI AND OPTICAL INTERCONNECTS INCREASING EDGE AI AND HIGH BANDWIDTH CONNECTIVITY IN DATA CENTERS DRIVING HIGHER SEMICONDUCTOR CONTENT GROWTH TODAY TOMORROW PROLIFERATION OF EDGE DEVICES (UNITS) ~2.5B EDGE ~300M AI INFERENCE IN-MEMORY COMPUTE ~15M AT THE EDGE AT THE EDGE 2020 2025 2
Slide 58: Cutting-Edge Solutions for Edge AI and Optical Interconnects
CUTTING-EDGE SOLUTIONS FOR EDGE AI AND OPTICAL INTERCONNECTS A COMPREHENSIVE PRODUCT PORTFOLIO TO ADDRESS MARKET NEEDS CLOUD AI FD-SOI High speed Crossover MCUs, connected MCUs, scalable FPGAs integrated connections LOWER ACTIVE POWER CONSUMPTION - ALWAYS ON PERFORMANCE ON DEMAND ROBUST ENERGY HARVE
Slide 59: Photonics-SOI to Sustain Growth in Optical Interconnects
PHOTONICS-SOI TO SUSTAIN GROWTH IN OPTICAL INTERCONNECTS AI / ML ENABLEMENT AS A NETWORK SOLUTION CURRENT AI / ML INFRASTRUCTURE FUTURE AI / ML INFRASTRUCTURE IS BANDWIDTH x DISTANCE LIMITED AS A MULTI-LAYERED NETWORK WITHIN TODAY DECADE PLUGGABLE TRANSCEIVERS CO-PACKAGED OPTICS FOR DATA CENTERS Dat
Slide 60: Vision for the Smart Devices Division
VISION FOR THE SMART DEVICES DIVISION SMART DEVICES DIVISION TODAY MID-TERM AMBITION MAINTAIN LEADERSHIP POSITION STRONG VALUE PROPOSITION FOR LOW ACROSS SOI SUPPLY CHAIN ENERGY CONSUMPTION DEVICES AND DATA CENTERS LEADING PROVIDER OF EDGE AI AND CLOUD AI INNOVATIVE SOLUTIONS FD-SOI Increased volume
Slide 61: Smart Devices Key Messages
SMART DEVICES KEY MESSAGES Edge AI proliferation and Cloud Strong customer intimacy Leveraging a AI computing power capabilities, to co-develop engineered multi-generation catalyst for two powerful megatrends substrates and increase emerging Edge and Cloud AI to sustain growth adoption across the va
Slide 62: Operations
07 1 2 3 4 5 6 7 OPERATIONS Cyril Menon O P E R AT I O N S 8 9 © Soitec 2024. No copying or distribution permitted. PAGE 62
Slide 63: ~€750M Capex to Ramp Up Capacity
~€750M CAPEX TO RAMP UP CAPACITY TO SUPPORT OUR MID-TERM AMBITION >4M WAFERS/YEAR ~30% SmartSiCTM ~3M ~30% Bernin 4 WAFERS/YEAR (SmartSiCTM) POI ~40% Bernin 3 (POI) Pasir Ris 1 (SOI 300mm) SOI 300mm SOI 200mm FY24 MID-TERM CAPACITY AMBITION 1 2 3 4 5 6 7 O P E R AT I O N S 8 9 © Soitec 2024. No copy
Slide 64: Setting Up an Efficient Industrial Model
SETTING UP AN EFFICIENT INDUSTRIAL MODEL SINGAPORE EXTENSION PROJECT ADJUSTED TO CUSTOMER DEMAND SOI Wafers Compound Wafers ~ 1.45 mwpy 200mm SOI capacity reaching limit SOITEC BERNIN 1 - SOI 200 SOITEC BERNIN 2 - SOI 300 SOITEC BERNIN 3 - POI SOITEC BERNIN 4 - SmartSiCTM – B1: full at 1M FRANCE FRA
Slide 65: ~€1.5B Capex Plan Supports Mid-Term Ambition
~€1.5B CAPEX PLAN SUPPORTS SOITEC MID-TERM AMBITION AND BEYOND FY25 CAPEX: ~€250M ~15% EQUIPMENT, TOOLS AND BUILDINGS ESG, IT ~20% & Recurring Emerging ~30% Activities Compounds Capacity ~35% SOI 300mm Capacity Building ~€1.5B CAPEX ~€750M FY22–FY24 MID-TERM AMBITION 1 2 3 4 5 6 7 O P E R AT I O N S
Slide 66: Implementing a State-of-the-Art Manufacturing Model
IMPLEMENTING A STATE-OF-THE-ART MANUFACTURING MODEL SYNERGY & MODERNIZATION BY DESIGN EXTENSION STRATEGY B4 LAYOUT COMPOUNDS B2 B4 Organization Lead-time SOI300 SmartSiC TM + Refresh to value Refresh Synergy 300mm POI SmartSiCTM GaN Level Illustrative layout FAB EXTENSIONS DEPLOYING AGILE FABS OPTIM
Slide 67: Deployment of Ambitious Roadmap for Sustainable Growth
DEPLOYMENT OF OUR AMBITIOUS ROADMAP TO SUPPORT A SUSTAINABLE GROWTH Scope 1/2 emissions (tCO2) trend reversed Water reuse ratio above target in FY24 - Raising FY30 Target ~50% Actual Water consumption 2023 Target Water reuse ratio (%) UPGRADED 27,550 SBTi 1.5°C TARGET pathway 36% 25,358 1.40 24% ~30
Slide 68: Operations Key Messages
OPERATIONS KEY MESSAGES Building and driving a Delivering our ramp up Deploying a scalable sustainable growth model, on ambitions relying on a industrial model, with agile track with our ambitious Water larger ecosystem with new capacity deployment and Climate commitments partners and suppliers 1 2
Slide 69: Finance
08 1 2 3 4 5 6 7 8 FINANCE Léa Alzingre FINANCE 9 © Soitec 2024. No copying or distribution permitted. PAGE 69
Slide 70: Finance Key Messages
FINANCE KEY MESSAGES Accelerated diversification of our model mitigates the MID-TERM AMBITION downcycle in Mobile Flexible and agile Clear vision toward model secures margin ~$2B revenue Managing the transition ~40% EBITDA(1) margin toward growth recovery (1) The EBITDA represents operating income b
Slide 71: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS P&L CASH FLOW BALANCE SHEET €978M SALES €165M OPERATING CASH FLOW €1.5B EQUITY -10% Y/Y Organic Growth vs €262M in FY23 vs €1.3B end of March 2023 34.0% EBITDA(1) MARGIN €276M CAPEX (2) €708M GROSS CASH POSITION -2pts vs FY23 vs €244M in FY23 vs €788M end of March 2023 €178
Slide 72: Smartphone Inventory Impacts Revenue Generation
SMARTPHONE MARKET INVENTORY IMPACTS REVENUE GENERATION €M % Change % Change FY24 FY23 17% as reported at constant FX and scope Automotive Mobile Communications 611 731 -16% -16% & Industrial €978M 62% Automotive & Industrial 163 141 +16% +16% 21% Mobile Smart Communications Smart Devices 204 217 -6%
Slide 73: Robust Gross Margin at 34%
ROBUST GROSS MARGIN AT 34% IN THE CONTEXT OF LOWER VOLUMES 37.2% 37.0% Gross margin (%) 36.6% Revenue (€M) 34.4% 34.0% 32.7% 31.4% GROSS MARGIN TAILWINDS • Solid industrial performance • Efficient cost management • Subsidies €1,089M €978M GROSS MARGIN HEADWINDS €863M • Lower volumes €598M €584M • Un
Slide 74: Current Operating Income at 21.3% of Revenue
CURRENT OPERATING INCOME AT 21.3% OF THE REVENUE WITH SUSTAINED INVESTMENT IN R&D €M FY24 FY23 Change Current operating margin decrease from 24.5% Revenue 978 1,089 -10% to 21.3% of revenue Gross profit 332 402 -17% Sustained investment in R&D: as a % of revenue 34.0% 37.0% • Gross R&D expenses befo
Slide 75: Net Profit at 18.2% of Revenue
NET PROFIT AT 18.2% OF REVENUE €M FY24 FY23 Change Net financial result at -€5M vs -€10M Current operating income 208 267 -22% in FY23 - Other operating income and expenses (3) 0 • Positive effect of interests income related to cash investments fully offset Operating income 205 268 -23% interest exp
Slide 76: Free Cash Flow Reflects Seasonality and Investments
FREE CASH FLOW REFLECTS SEASONALITY AND INVESTMENTS IN MID-TERM GROWTH €M FY24 FY23 OPERATING CASH FLOW AT €165M Operating income 205 268 Reflects lower EBITDA and higher increase in working - Depreciation and amortization 126 106 capital requirement - Other items 1 18 €142M negative change in worki
Slide 77: Moderate Net Debt Position
MODERATE NET DEBT POSITION 165 -€179M Net change in cash 140 (208) (17) (39) (112) (7) Net Cash at Net cash generated Net cash used in Net cash used in New Other Net debt at 31 March 2023 by operating investing activities financing activities leasings (FX, Other Debt) 31 March 2024 activities Cash i
Slide 78: Very Sound Balance Sheet Maintained
VERY SOUND ASSETS - in €M 31 March 2024 31 March 2023 LIABILITIES AND EQUITY - in €M 31 March 2024 31 March 2023 BALANCE SHEET Intangible assets 156 128 Total equity 1,495 1,306 MAINTAINED Tangible assets 913 705 Long-term financial debt 669 578 Other non-current assets 89 84 Provisions and other no
Slide 79: Very Healthy Financial Structure Ahead of Growth Plans
VERY HEALTHY FINANCIAL +€189M €1,495M STRUCTURE AHEAD OF FUTURE GROWTH PLANS €1,306M -€80M €788M €708M 31 March 2023 31 March 2024 31 March 2023 31 March 2024 SHAREHOLDERS’ EQUITY (€M) CASH AND CASH EQUIVALENTS (€M) +€99M €747M €140M €648M -€179M €-39M 31 March 2023 31 March 2024 31 March 2023 31 Ma
Slide 80: FY25 Outlook
FY25 OUTLOOK STABLE REVENUE EXPECTED EBITDA MARGIN(1) CAPITAL EXPENDITURE ON AN ORGANIC BASIS EXPECTED AT ~35% EXPECTED AT ~€250M FY25 REVENUE EXPECTED FLAT Y/Y PROFITABILITY IMPROVED THROUGH CAPACITY INVESTMENTS TO SUPPORT BEFORE RESUMING GROWTH TRAJECTORY STRICT COST CONTROL STRONG GROWTH BEYOND F
Slide 81: Clear Vision Toward ~$2B Revenue
A CLEAR VISION TOWARD ~$2B REVENUE ~$2B LEVERAGING STRONG GROWTH ACROSS OUR 3 END MARKETS REVENUE As previously communicated, no more guidance will be given ~20% beyond yearly guidance ~20% ~30% $1.1B SMART ~25% REVENUE ~50% DEVICES AUTOMOTIVE & INDUSTRIAL 21% 17% MOBILE COMMUNICATIONS ~55% 62% FY24
Slide 82: Clear Vision Toward ~40% EBITDA Margin
A CLEAR VISION TOWARD ~40% EBITDA MARGIN EBITDA MARGIN IMPROVEMENT DRIVERS (@1.10€/$) ~40% EBITDA MARGIN(1) Operating leverage Product mix 34% EBITDA MARGIN(1) ASP Innovation FY24 MID-TERM (1) The EBITDA represents operating income before depreciation, amortization, impairment of non-current assets,
Slide 83: Mid-Term Financial Model
MID-TERM FINANCIAL MODEL WRAP-UP ADDITIONAL ~€750M CAPEX TO SUPPORT SOITEC’S GROWTH PLAN FY24 MID-TERM (ACTUAL) MODEL Operating cash flow will finance CAPEX • Strong working capital monitoring with a target around 35% of revenue in average CAPEX % Revenue(1) 28% ~20% Strong mid-term ROCE growth • FY
Slide 84: Finance Key Messages
FINANCE KEY MESSAGES Optimized investment cycle Strong acceleration for Preparing for reacceleration from FY24 to mid-term horizon value creation with EBITDA beyond FY25 transition year to secure growth expansion improvement 1 2 3 4 5 6 7 8 FINANCE 9 © Soitec 2024. No copying or distribution permitt
Slide 85: Q&A
Q&A © Soitec 2024. No copying or distribution permitted. PAGE 85
Slide 86: CEO Wrap-Up
09 1 2 3 4 5 6 7 8 CEO WRAP-UP Pierre Barnabé 9 CEO WR AP -UP © Soitec 2024. No copying or distribution permitted. PAGE 86
Slide 87: CEO Wrap-Up
CEO WRAP-UP MID-TERM AMBITION FY24 results reflect ongoing Strengthening our Clear vision toward inventory correction in the sustainable value ~$2B revenue smartphone supply chain creation model ~40% EBITDA(1) margin (1) The EBITDA represents operating income before depreciation, amortization, impai
Slide 88: Thank You
y, THANK YOU