Soitec (SOI) investor relations material

Opening remarks and agenda

• The meeting was chaired by Frédéric Lissalde, with participation from the CEO, CFO, Board Secretary, statutory auditors, and scrutineers.

• Officers and scrutineers were appointed, and the agenda included company activity review, sustainability strategy, FY26 financial results, governance, compensation, auditors' reports, Q&A, and voting on resolutions.

• The meeting was broadcast live and recorded, with all legal formalities and quorum requirements met.

Financial performance review

• FY26 revenue declined 30% year-on-year to €592 million, mainly due to inventory corrections and weak demand in automotive and industrial sectors.

• Gross margin dropped to 16.3% from 32.1% the previous year, with EBITDA margin at 25.4%.

• Free cash flow turned positive at €63 million, exceeding consensus and supported by disciplined working capital and capex management.

• Net debt improved to €56 million, with a leverage ratio of 0.4x EBITDA and strong liquidity at €562 million cash.

• Net loss (Group share) of €220 million, impacted by non-recurring items including impairments and FX losses.

• Capex reduced to €135 million (from €230 million in FY25), with further moderation planned for FY27.

• Photonics-SOI revenue doubled, driven by AI data center demand, while mobile and automotive segments remained weak.

Strategic initiatives and plans

• Focus on AI, photonics, and energy efficiency as key growth drivers, with Photonics-SOI revenue expected to more than double in FY27.

• Investments for 2026-2027 are set at €100 million, with capital allocation prioritized for high-return opportunities.

• Portfolio prioritization and capital allocation review underway; cost-cutting and portfolio optimization programs are ongoing.

• Continued investment in R&D and targeted capex to support high-growth segments.

• Sustainability remains central, with significant progress in emissions reduction, renewable energy use, water management, and gender parity.