Slide 1: H1 2025 Results Presentation
H1 2025 Results Presentation 23 September 2025
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 Mark Cubitt Executive Chair
Slide 4: Strategic Review
IQE plc Strategic Review The Board announced expansion of Strategic Review to incorporate the potential sale of the Company IQE already in receipt of an approach from a potential offeror with additional early-stage expressions of interest Discussions continuing to advance relating to the sale of the
Slide 5: H1 2025 in review
H1 2025 in review Jutta Meier Chief Executive Officer
Slide 6: H1 2025 | A challenging trading environment
IQE plc H1 2025 | A challenging trading environment Global market conditions Headwinds Tailwinds Global macro Wireless Military & Increased Technological GaN market environment market defence defence disruption concentration demand funding delays spending Global Inventory Delays to US Military AI an
Slide 7: H1 2025 | Business update
IQE plc H1 2025 | Business update Strength in InP reflects Strong development pipeline proliferation of AI and appetite for despite slower adoption of EV greater connectivity, speed and technology functionality CONNECT POWER Continued demand for sensing Continuation of development products in consum
Slide 8: H1 2025 revenue: £45.3m
IQE plc H1 2025 revenue: £45.3m Total Wireless Total Photonics Revenue Down Revenue Down £18.6m 52% £26.6m 1% year-on-year year-on-year • Overhang of 2024 customer inventory builds • Strong performance in InP data communications for AI markets • Tariff uncertainty • Funding delays in US military and
Slide 9: H1 2025 financial highlights
IQE plc H1 2025 financial highlights Revenue Adj. EBITDA1,2 Adj. operating cashflow2 Adj. net debt3 £’m £’m £’m 6.6 6.2 £(23.5m) 66.0 at 30 June 2025 10% 45.3 1.8 (0.4) (1%) H1 2024 H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 Cash and cash equivalents of Revenue decrease Low operating leverage as Workin
Slide 10: Net debt bridge
IQE plc Net debt bridge - (£5.0m) (£10.0m) £4.6m (£15.0m) (£2.6m) £1.6m (£2.4m) (£18.8m) (£0.9m) £0.1m (£20.0m) (£1.6m) (£3.4m) (£0.1m) (£23.5m) (£25.0m) IQE plc | H1 2025 Results Presentation 10
Slide 11: Cost control and cash generation
IQE plc Cost control and cash generation Actions taken: • Tight controls over discretionary expenditure in line with current trading environment • Continued reduction in SG&A spend while simultaneously strengthening operational capabilities • Maintained right-sized headcount following over 10% reduc
Slide 12: Current trading and outlook
IQE plc Current trading and outlook • Softness in Wireless markets is expected to persist through 2025, while delays to federal funding cycles in US military and defence sectors are resulting in the deferral of orders into 2026 • Revenue for FY 2025 is expected to be between £90.0m to £100.0m, resul
Slide 13: Summary
IQE plc Summary • Strategic Review to incorporate potential sale of the Company • IQE already in receipt of an approach. Additional early-stage expressions of interest have been received post announcement • Supporting IQE’s long-term vision centred on sustainable growth through operational efficienc
Slide 14: Appendix
Appendix
Slide 15: Summary financials
IQE plc Summary financials £’million H1 2025 (£’m) H1 2024 (£’m) Revenue 45.3 66.0 Sales, general & administrative costs (16.3) (16.2) 1 Adjusted EBITDA (0.4) 6.6 Adjusted LBIT (12.9) (7.2) Reported LBIT (23.5) (12.1) Reported loss before tax (26.5) (13.9) Reported loss after tax (26.0) (15.1) Adjus
Slide 16: Adjusted income statement items
IQE plc Adjusted income statement items H1 2025 H1 2024 £'million Cash Non-cash Total Total Share based payments - 1.4 1.4 2.2 CEO recruitment - - - 0.2 Photonics CGU - 7.6 7.6 - impairment Restructuring 1.5 - 1.5 2.5 Total 1.5 9.0 10.5 4.9 IQE plc | H1 2025 Results Presentation 16
Slide 17: Balance sheet
IQE plc Balance sheet As at 30 June 2025 £’million H1 2025 H1 2024 Intangible assets 19.8 34.3 Property, plant & equipment 103.4 124.7 Right of use assets 39.4 45.7 Total current assets 65.6 81.6 Current liabilities* (33.2) (50.6) Bank borrowings due within 1 year - (1.6) Convertible loan notes due
Slide 18: Cashflow bridge
IQE plc Cashflow bridge £20.0m £18.0m £17.3m £0.1m £17.0m (£0.3m) £16.0m £14.0m £12.0m £10.0m £4.6m £8.0m £6.0m (£1.8m) £4.7m (£0.6m) £4.0m (£1.0m) £0.1m (£1.0m) (£1.5m) (£0.1m) £2.0m - (£3.4m) (£2.0m) IQE plc | H1 2025 Results Presentation 18
Slide 19: EBITDA bridge
IQE plc EBITDA bridge - (£0.4m) (£5.0m) (£10.0m) (£12.6m) (£15.0m) (£1.5m) (£1.4m) (£20.0m) (£7.6m) (£25.0m) £0.5m (£3.0m) (£26.0m) (£30.0m) IQE plc | H1 2025 Results Presentation 19
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