Soitec Reports FY’17 Third Quarter Revenues

• Q3’17 revenues reached €63.1m, up 5% at constant exchange rates  compared with Q3’16
• Continued growth in Communication & Power 200-mm wafer sales
• 300-mm wafer sales have picked up from low point reached in Q2’17
• FY’17 revenue growth should be in line with the growth achieved in the first 9 months (i.e. +4% at constant exchange rates)

Bernin (Grenoble), France, January 25th, 2017 – Soitec (Euronext Paris), a world leader in
designing and manufacturing innovative semiconductor materials, today announced
consolidated revenues of 63.1 million Euros for the third quarter of FY’17 (ended December
30th 2016), up 7% compared with 58.9 million Euros in the third quarter of FY’161. This
represents a 5% increase at constant exchange rates. On a sequential basis, third quarter
revenues were 7% higher at constant exchange rates than in the second quarter of FY’17.

Paul Boudre, Soitec’s CEO and Chairman of the Board, commented: “We achieved solid
sales growth in the third quarter. Sales continued to be supported by the steady demand for RF
and Power 200-mm wafers designed for applications in the mobile and automotive markets. As
expected, 300-mm wafer sales have picked up from the low point reached in the second
quarter, with the decline in PD-SOI products being more than offset by the increase in FD-SOI
and Emerging SOI products. We expect further milestones for our FD-SOI technology to be
reached in the coming quarters. We are ideally positioned to support the future needs for low
power consumption, RF integration and high reliability arising from the latest trends in new
applications for automotive, communication and Internet of Things”.

Communication & Power
Demand for both radiofrequency (RF-SOI) and power electronics (Power-SOI) products
dedicated to the mobile and automotive markets continue to drive the sales of 200-mm wafers
whilst the sales of RF 300-mm wafers are still due to step up in calendar year 2017.

Digital
In digital segment, revenues driven by the demand for PD-SOI 300-mm wafers (partially
depleted silicon-on-insulator for ASICs, servers and networking applications) has reached a
sustainable residual level.
Revenues from FD-SOI wafers (fully depleted silicon-on-insulator for digital mobile and low
power applications such as smartphones, automotive, consumer electronics, Internet-of-Things)
are beginning to be material even though they still mostly reflect the ongoing qualification
process at some foundries with their fabless customers.
In the meantime, sales of SOI substrates for emerging applications, such as Silicon Photonics,
have further increased.

Third quarter FY’17 consolidated sales (unaudited)
Q3’16 Q3’17 Q3’17/Q2’17
(sequential change)
Q3’17/Q3’16
(annual change)
(Euros thousands) % % at cst FX % % at cst FX
200-mm 44,219 47,896 +7% +4% +8% +7%
300-mm 13,097 13,366 +25% +21% +2% 0%
Royalties and IP 1,593 1,806 +37% +33% +13% +12%
Total revenues 58,908 63,068 +11% +7% +7% +5%

200-mm wafer sales
Sales of 200-mm wafers in the third quarter of FY’17 went up 7% at constant exchange rates
compared with the third quarter of FY’161. This results from an increase in the volume of RF-
SOI and Power-SOI wafers sold, reflecting the improvement plan implemented at the Bernin I
200-mm production site to deliver more wafers through an increase of the process throughput, a
higher efficiency of the equipment and a higher yield.
On a sequential basis, sales of 200-mm wafers increased by 4% at constant exchange rates
compared to the second quarter of FY’17 essentially thanks to a better product mix. The
Bernin I 200-mm production site continued to operate at full capacity in the third quarter ofFY’17. In addition, Soitec benefited from the sale of the very first few thousands 200-mm wafers
produced by Simgui’s manufacturing facility in Shanghai using Soitec’s proprietary Smart Cut™
technology.

300-mm wafer sales
Sales of 300-mm wafers in the third quarter of FY’17 were flat at constant exchange rates
compared with the third quarter of FY’16. This is the result of combination of:
- a sharp but anticipated decline of the PD-SOI product line;
- a higher level of sales of FD-SOI products;
- an increase in other 300-mm products (RF 300-mm wafers as well as new Emerging
SOI products for digital applications).
On a sequential basis, sales of the third quarter of FY’17 were however 21% higher at constant
exchange rates compared to the second quarter of FY’17, confirming the indication previously
given that the 300-mm wafer sales would start picking up at the Bernin II 300-mm production
site after the low point reached in the second quarter of FY’17.

Royalties and intellectual property
Revenues from royalties and intellectual property reached 1.8 million Euros in the third quarter
of FY’17, compared with 1.6 million Euros in the third quarter of the previous fiscal year, that is
to say a 12% increase at constant exchange rates.
First 9 months of FY’17 consolidated sales (unaudited)

First 9 months of FY’17 consolidated sales (unaudited)
9m’16 9m’17 9m’17/9m’16
(Euros thousands) % % at cst FX,
200-mm 128,047 135,280 +6% +6%
300-mm 35,602 35,397 -1% -1%
Royalties and IP 4,113 4,525 +10% +10%
Total revenues 167,762 175,202 +4% +4%
For the first nine months of FY’17 as a whole, revenues reached 175.2 million Euros. Compared
with the first nine months of FY’161, they were up 4%, both on a reported basis and at constant
exchange rates.

Outlook
For Q4’17, growth in demand for products used in radio-frequency (RF) applications and power
electronics applications (Power) should remain robust allowing Bernin I 200mm wafer
production site to continue running at full capacity whilst production at Simgui is expected to
continue ramping up, bringing additional capacity for Soitec to meet customers’ demand.
In 300mm, demand is expected to continue picking up with the increase in FD-SOI, Emerging
SOI and RF 300-mm products due to offset the effects arising from the end of the lifecycle of
PD-SOI product line.
Overall, Soitec now expects its FY’17 revenue growth at constant exchange rates to be in line
with the growth achieved in the first nine months of FY’17 (i.e. up 4%). As regards earnings
performance, Soitec confirms targeting an EBITDA margin2 in Electronics for H2’17 of the same
order of magnitude as in H1’17 (i.e. 16.5% EBITDA margin).

Agenda
Q4’17 revenues are due to be published on April 19th, 2017 and FY’17 results are due to be
published on June 14th, 2017.
About Soitec
Soitec (Euronext, Tech 40 Paris) is a world leader in designing and manufacturing innovative
semiconductor materials. The company uses its unique technologies and semiconductor expertise to
serve the electronics markets. With more than 3,000 patents worldwide, Soitec’s strategy is based on
disruptive innovation to answer its customers’ needs for high performance, energy efficiency and cost
competitiveness. Soitec has manufacturing facilities, R&D centers and offices in Europe, the U.S. and
Asia.
For more information, please visit www.soitec.com and follow us on Twitter: @Soitec_E

Appendix
Quarterly sales Q1 Q2 Q3 9 months
(Euros thousands) ‘16 ‘17 ‘16 ‘17 ‘16 ‘17 ‘16 ‘17
200-mm 40,798 42,677 43,030 44,706 44,219 47,896 128,047 135,280
300-mm 11,790 11,355 10,715 10,676 13,097 13,366 35,602 35,397
Royalties and IP 1,467 1,405 1,053 1,314 1,593 1,806 4,113 4,525
Total revenues 54,055 55,437 54,799 56,697 58,908 63,068 167,762 175,202
Quarterly sales Q1 Q2 Q3 9 months
(vs previous year) change
reported
change
at cst FX
change
reported
change
at cst FX
change
reported
change
at cst FX
change
reported
change
at cst FX
200-mm +4.6% +6.5% +3.9% +4.3% +8.3% +6.6% +5.6% +5.6%
300-mm -3.7% -1.9% -0.4% -0.0% +2.1% +0.4% -0.6% -0.6%
Royalties and IP -4.2% -2.5% +24.8% +25.2% +13.4% +11.6% +10.0% +10.0%
Total revenues +2.6% +4.4% +3.5% +3.8% +7.1% +5.4% +4.4% +4.4%