SOI SOITEC

SOITEC REPORTS FY’22 FOURTH QUARTER REVENUE

• FY’22 revenue reached for the first time $1 billion, at €863m, up 50% at constant exchange rates, slightly above the guidance of around 45%
• Q4’22 revenue also reached the record level of €282m, up 53% at constant exchange rates versus Q4’21
• FY’22 EBITDA1 margin2 is now expected around 35.5%
• FY’23 revenue expected up around 20% at constant exchange rates and perimeter and EBITDA1 margin2 at least at the level of FY’22 EBITDA1 margin2
• Soitec managing its business to reach by FY’26 a revenue target of around $2.3 billion and an EBITDA1 margin2 target of around 40% (at a 1.20 Euro/ US Dollar exchange rate)

Bernin (Grenoble), France, April 27th, 2022 – Soitec (Euronext Paris), a world leader in designing and manufacturing innovative semiconductor materials, today announced consolidated revenue of 282 million Euros for the fourth quarter of FY’22 (ended March 31st, 2022), up 56% compared with 181 million Euros achieved in the fourth quarter of FY’21. This reflects the combination of a 53% growth at constant exchange rates and a positive currency impact of 3%3.

On a sequential basis, fourth quarter revenue was up 35% at constant exchange rates compared with the third quarter of FY’22, representing a seventh consecutive quarter-over-quarter organic revenue growth since the first quarter of FY’21.

Paul Boudre, Soitec’s CEO, commented: “Thanks to another record quarter, we completed our fiscal year with a 50% annual organic growth, an even higher level than initially anticipated allowing us to pass the one billion US dollars revenue mark for the first time. We are very proud of such a strong performance and particularly pleased that significant growth was achieved by all our products, demonstrating the value that we bring to our customers on our three end markets: mobile communications, automotive and industrial, and smart devices.

“Among the key events of the quarter, in line with our FY’26 strategic roadmap, we announced the expansion of our manufacturing footprint in Bernin to ramp up overall production and manufacture innovative SmartSiC™ wafers. SmartSiC™ will primarily address the key challenges of the electric vehicle and industrial markets,” added Paul Boudre.

Fourth quarter FY’22 consolidated revenue (unaudited)

Soitec recorded a 53% total revenue increase at constant exchange rates in the fourth quarter of FY’22 compared to the fourth quarter of FY’21, with a solid performance across all types of products in each end market.

Soitec achieved another strong growth in Mobile communications, its largest end market, which continues to be supported by the deployment of 5G, whether in sub-6 GHz or in mmWave. The expansion of 5G is translating into much higher sales of RF-SOI wafers dedicated to radiofrequency applications, POI wafers dedicated to RF filters, and also FD-SOI wafers for 5G mmWave modules. Growth was enabled by the ramp-up in production following the capacity increase in our Singapore facility dedicated to 300-mm SOI products and in Bernin III, dedicated to 150-mm POI products.

Soitec enjoyed further growth in Automotive & Industrial as evidenced by the sustained sales of Power-SOI and FD-SOI, which continue to benefit from the recovery of the automotive market.

Soitec also achieved a sharp increase in revenue from Smart devices thanks to much higher sales of FD-SOI wafers for Internet of Things and edge computing applications as well as of Photonics-SOI wafers for data centers.

150/200-mm wafer revenue

150/200-mm wafers are mostly dedicated to radiofrequency applications, including filters, and, for a smaller part, to power applications. In the fourth quarter of FY’22, 150/200-mm wafer revenue reached 94 million Euros, a 25% growth at constant exchange rates compared to the fourth quarter of FY’21. This growth mostly reflects a strong increase in volumes of 150-mm POI wafers produced in Bernin III, as well as a higher output of 200-mm SOI wafers in Bernin I thanks to the industrial performance and at Simgui, Soitec’s partner based in Shanghai. It also reflects a positive price/mix effect.

150/200-mm wafer revenue growth was mainly supported by:

• Higher RF-SOI 200-mm wafer sales compared to the fourth quarter of FY’21,
• An increase in POI (Piezoelectric-on-Insulator) wafer sales compared to the fourth quarter of FY21.

On a sequential basis, 150/200-mm wafer revenue was up 9% at constant exchange rates compared to the third quarter of FY’22, with higher RF-SOI 200-mm and Power SOI wafer sales.

300-mm wafer revenue

In the fourth quarter of FY’22, 300-mm wafer sales reached 175 million Euros, an 81% increase at constant exchange rates, compared with the fourth quarter of FY’21. Sales growth essentially results from a strong demand on Soitec’s three end markets and the Group’s capacity to deliver more volumes from Bernin II (thanks to the very good industrial performance) and from Singapore (thanks to the capacity increase), and to a small extent from a positive price/mix effect.

RF-SOI 300-mm wafer sales significantly increased compared with the fourth quarter of FY’21. Sales continue to be supported by the ongoing deployment of 5G smartphones and by the increase in RF content in every 5G smartphone.

FD-SOI wafer sales continued to enjoy a strong growth and were significantly higher than in the fourth quarter of FY’21, as FD-SOI is increasingly benefitting applications across Soitec’s three end markets, i.e. Smart devices, Automotive and Industrial, and Mobile communications, especially 5G mmWave modules.

Sales of Imager-SOI wafers, which allow 3D image sensing for facial recognition in smartphones, also reached a higher level than in the fourth quarter of FY’21.

Finally, sales of Photonics-SOI wafers for data centers were much higher than in the fourth quarter of FY’21, confirming the positive trend experienced since the fourth quarter of FY’21.

On a sequential basis, 300-mm wafer revenue increased 50% at constant exchange rates compared to the third quarter of FY’22, with strong growth achieved in every product line.

Royalties and other revenue

Total Royalties and other revenue reached 13 million Euros in the fourth quarter of FY’22 compared to 12 million Euros in the fourth quarter of FY’21, up 9% at constant exchange rates.

FY’22 annual consolidated revenue (unaudited)

Annual consolidated revenue reached 863 million Euros in FY’22, an all-time high record. Revenue was up 48% from 584 million Euros in FY’21. This reflects the combination of a 50% growth at constant exchange rates and a negative currency impact of 2%.

150/200-mm wafer sales were up 26% at constant exchange rates compared to FY’21 while 300-mm wafer sales were up 79% at constant exchange rates.

FY’22 Outlook

Thanks in particular to the higher revenue level in Q4’22, FY’22 EBITDA1 margin2 is now expected around 35.5%, Soitec having previously guided around 34% with a potential upside to reach around 35%.

FY’23 outlook

Soitec anticipates FY’23 revenue up around 20% at constant exchange rates and perimeter and EBITDA margin at least at the level of FY’22 EBITDA1 margin2.

FY’26 Financial model

Soitec is anticipating significant growth on each of its end markets and is managing its business to reach by FY’26 a revenue target of around 2.3 billion US Dollar and an EBITDA1 margin2 target of around 40% (at a 1.20 Euro/US Dollar exchange rate), as compared to a revenue of 2 billion US Dollar (with a high case around 2.4 billion US Dollar) and a 35% EBITDA1 margin2 communicated during its Capital Markets Day in June 2021.

Key events of the quarter

Dolphin Design opens a processing center in Singapore

On January 5th, 2022, Dolphin Design, specialized in advanced chip design, announced that it will open its new dedicated Edge Computing and AI branch in Soitec’s fab in Singapore. Dolphin Design's vision is to enable the largest possible AIoT/EDGE IoT semiconductor community to deliver products with ultimate energy efficiency and performance. Soitec holds an 80% stake in Dolphin Design.

A*STAR's Institute of Microelectronics and Soitec to develop next-generation silicon carbide semiconductors

On January 10th, 2022, Singapore-based Institute of Microelectronics (IME) at the Agency for Science, Technology and Research (A*STAR) and Soitec have announced a research collaboration to develop next-generation silicon carbide (SiC) semiconductor devices to power electric vehicles and advanced high-voltage electronic devices.

Chief Executive Officer succession plan

On January 19th, 2022, Soitec’s Board of Directors announced that Pierre Barnabé will succeed Paul Boudre as Group CEO at the close of the July 2022 shareholders’ meeting. Pierre Barnabé will join the company on May 1st, 2022 to work closely with Paul Boudre on an effective leadership transition. The Board will also propose the nomination of Pierre Barnabé as a Director at the ordinary shareholders’ meeting scheduled for July 26th, 2022.

Soitec to expand its manufacturing footprint in Bernin to produce innovative silicon carbide semiconductor wafers and increase its SOI capabilities

On March 11th, 2022, Soitec announced a new fabrication facility at its headquarters in Bernin, France, primarily to manufacture new silicon carbide wafers, which address key challenges of the electric vehicle and industrial markets. The extension will also support Soitec’s 300-mm Silicon-on-Insulator (SOI) activities. The factory is to produce innovative SmartSiC™ engineered wafers developed by Soitec at the Substrate Innovation Center located at CEA-Leti in Grenoble, using Soitec’s proprietary SmartCut™ technology. The electronic chips built on this type of wafers offer compelling performance and energy efficiency gains to power supply systems. The groundbreaking ceremony took place on March 31st. The new facility will lead to the creation of up to 400 direct new jobs. Soitec targets to generate first revenues in the second half of calendar year 2023.

Grenoble INP – Phelma, UGA and Soitec sign a first partnership agreement

On March 14th, 2022, Grenoble INP - Phelma, Engineering school in Physics, Electronics and Materials Science of Université Grenoble Alpes and Soitec announced the signing of a three-year partnership agreement that will enhance collaboration between the two organizations, with a focus on growing microelectronics as a field of study. It will also provide support for Phelma’s students as they transition to working life and promote recruitment initiatives.

Post-closing events

Power outage of production in Bernin

At around 2:00 am on Tuesday April 5th, 2022, a fire broke out at an electricity supply facility outside Soitec's site in Bernin which led to the power outage of its production plants. Safety protocols were activated to protect equipment while waiting for the restoration of the power supply. Soitec's plants were progressively back in operation as from April 5th at 8:30 pm and production went fully back to normal on April 9th. Soitec expects this power outage to have only a very limited impact on FY’23 operational and financial performance.

CEA, Soitec, GlobalFoundries and STMicroelectronics to advance next generation FD-SOI roadmap for automotive, IoT and mobile applications

On April 8th, 2022, leading semiconductor players CEA, Soitec, GlobalFoundries and STMicroelectronics announced a new collaboration in which they intend to jointly define the industry’s next generation roadmap for FD-SOI technology. Semiconductors and FD-SOI innovation are of strategic value to France and the EU as well as to customers globally. FD-SOI offers substantial benefits for designers and customer systems, including lower power consumption as well as easier integration of additional features such as connectivity and security, a key feature for automotive, IoT and mobile applications.

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Analysts conference call to be held in English on Thursday 28th April at 8:00 am CET.

To listen this conference call, the audiocast is available live and in replay at the following address: https://channel.royalcast.com/soitec/#!/soitec/20220428_1

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Agenda

FY’22 annual results are due to be published on June 8th, 2022 after market close.

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Disclaimer

This document is provided by Soitec (the “Company”) for information purposes only.

The Company’s business operations and financial position are described in the Company’s 2020-2021 Universal Registration Document (which notably includes the 2020-2021 Annual Financial Report) which was filed on July 5, 2021 with the French stock market authority (Autorité des Marchés Financiers, or AMF) under number D.21-0681 as well as in the Company’s FY’22 half-year report released on December 2nd, 2021. The French versions of the 2020-2021 Universal Registration Document and of the half-year report, together with English courtesy translations for information purposes of both documents are available for consultation on the Company’s website (www.soitec.com), in the section Company - Investors - Financial Reports.

Your attention is drawn to the risk factors described in Chapter 2.1 of the Company’s 2020-2021 Universal Registration Document.

This document contains summary information and should be read in conjunction with the 2020-2021 Universal Registration Document and the FY’22 half-year report.

This document contains certain forward-looking statements. These forward-looking statements relate to the Company’s future prospects, developments and strategy and are based on analyses of earnings forecasts and estimates of amounts not yet determinable. By their nature, forward-looking statements are subject to a variety of risks and uncertainties as they relate to future events and are dependent on circumstances that may or may not materialize in the future. Forward-looking statements are not a guarantee of the Company’s future performance. The occurrence of any of the risks described in Chapter 2.1 of the Universal Registration Document may have an impact on these forward-looking statements. In addition, the future consequences of geopolitical conflicts, in particular the Ukraine / Russia situation, as well as rising inflation, may result in greater impacts than currently anticipated in these forward looking statements.

The Company’s actual financial position, results and cash flows, as well as the trends in the sector in which the Company operates may differ materially from those contained in this document. Furthermore, even if the Company’s financial position, results, cash-flows and the developments in the sector in which the Company operates were to conform to the forward-looking statements contained in this document, such elements cannot be construed as a reliable indication of the Company’s future results or developments.

The Company does not undertake any obligation to update or make any correction to any forward-looking statement in order to reflect an event or circumstance that may occur after the date of this document. In addition, the occurrence of any of the risks described in Chapter 2.1 of the Universal Registration Document may have an impact on these forward-looking statements.

This document does not constitute or form part of an offer or a solicitation to purchase, subscribe for, or sell the Company’s securities in any country whatsoever. This document, or any part thereof, shall not form the basis of, or be relied upon in connection with, any contract, commitment or investment decision.

Notably, this document does not constitute an offer or solicitation to purchase, subscribe for or to sell securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from the registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Company’s shares have not been and will not be registered under the Securities Act. Neither the Company nor any other person intends to conduct a public offering of the Company’s securities in the United States.

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About Soitec

Soitec (Euronext, Tech 40 Paris) is a world leader in designing and manufacturing innovative semiconductor materials. The company uses its unique technologies to serve the electronics markets. With more than 3,500 patents worldwide, Soitec’s strategy is based on disruptive innovation to meet its customers’ needs for high performance, energy efficiency and cost competitiveness. Soitec has manufacturing facilities, R&D centers and offices in Europe, the United States and Asia.Soitec and Smart Cut are registered trademarks of Soitec.

For more information, please visit www.soitec.com and follow us on Twitter: @Soitec_EN

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Soitec is a French joint-stock corporation with a Board of Directors (Société Anonyme à Conseil d’administration) with a share capital of €70,301,160, having its registered office located at Parc Technologique des Fontaines - Chemin des Franques - 38190 Bernin (France), and registered with the Grenoble Trade and Companies Register under number 384 711 909.

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Consolidated revenue (Q3’22 and Q4’22 unaudited)

1 At constant exchange rates and comparable scope of consolidation:

• There is no scope effect in Q4’21, Q1’22, Q2’22, Q3’22.
• In Q4’22, the scope effect relating to the acquisition of NOVASiC, finalized on December 29, 2021, had no material impact on Soitec's revenue.

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[1] The EBITDA represents the operating income (EBIT) before depreciation, amortization, non-monetary items related to share-based payments, and changes in provisions on current assets and provisions for risks and contingencies, excluding income on asset disposals. This alternative indicator of performance is a non-IFRS quantitative measure used to measure the company’s ability to generate cash from its operating activities. EBITDA is not defined by an IFRS standard and must not be considered as an alternative to any other financial indicator.

[2] EBITDA margin = EBITDA from continuing operations / Revenue.

[3] The scope effect related to the acquisition of NOVASiC, the closing of which took place on December 29, 2021, had no material impact on Soitec’s revenue.

Attachment

• SOITEC PR Sales Q4'22 VUK

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