Bernin, France, 28th May 2015 – Soitec (Euronext Paris), a world leader in generating and manufacturing
revolutionary semiconductor materials for the electronics and energy industries, announced today its
audited consolidated results for the 2014-2015 financial year.
As previously announced on April 20 th 2015, Soitec reported total consolidated sales of 222.9 million
Euros for the fiscal year 2014-15 (compared to 247.1 million Euros for the fiscal year FY13-14). The
company is committed to refocus on its core business, which can be defined as semiconductor
materials.
Soitec reported a current operating loss of 125.9 million Euros (compared to a current operating
income loss of 137.3 million Euros for the fiscal year FY13-14). For the second semester of the fiscal
year 2014-15, the Group reported revenues of 116.9 million Euros (compared to 106.0 million Euros in
H115) and a current operating loss of 51.5 million Euros (compared to a 74.4 million Euros current
operating loss in H115).
Soitec reported 151.5 million Euros net non-current operating expenses for the fiscal year 2014-15
(compared to 82.4 million Euros in the fiscal year 2013-14), which are due for the most part to the
restructuring costs of the Solar division (138.9 million Euros related to asset write-offs and various
provisions for ongoing contracts, layoffs and power plants dismantlement).
After net financial expenses and taxes, Soitec reported a net loss (group share) of 259.2 million Euros
for the fiscal year 2014-15 (compared to a net loss of 236.7 million Euros in fiscal year 2013-14).
Cash available at the end of March 2015 totaled 22.9 million Euros while gross debt totaled 173.0
million Euros, leading to a net debt of 150.1 million Euros.
Consolidated Income Statement
(Euros millions) 2013-2014 2014-2015
Sales 247.1 222.9
Gross Profit (55.7) (30.8)
As a percentage of sales -22.5% -13.8%
R&D 28.4 38.9
SG & A 53.2 56.2
Current Operating Income (loss) (137.3) (125.9)
As a percentage of sales -55.5% -56.5%
Non current operating expenses 82.4 151.5
Net interest and minority share 17.0 (18.1)
Group share (236.7) (259.2)
As a percentage of sales -95.8% -116.3%
EBITDA (79.1) (67.9)
As a percentage of sales -32.0% -30.5%
Segment analysis – Electronics
• The Electronics division posted sales of 177.7 million Euros in FY14-15, up 6% compared to
167.5 million Euros last year. At constant exchange rates, Electronics division sales growth was
-2% in FY14-15, in line with the “flat growth” guidance given by the management.
• The Electronics division posted a current operating loss of 3.0 million Euros in during the fiscal
year FY14-15 (compared to a current operating loss of 26.4 million Euros during the fiscal year
FY13-14).
o For the second semester of the fiscal year FY14-15, the Electronics division posted a
positive operating income of 9.0 million Euros (compared to an operating loss of 12.0
million Euros in H115). The significant improvement in profitability in H215 resulted
from a sharp sequential increase in revenues (+56% sequential sales increase in H215), a
favorable currency mix effect and the full effect of the restructuring measures.
o In H215, the wafer business reported a manufacturing margin of 22% (versus 9% in
H115).
o Regarding the profitability per wafer diameter, the manufacturing margin for 300mm
wafers was slightly positive in H215 (compared to nearly negative 20% in H115), while
the manufacturing margin for 200mm wafers was close to 30% in H215 (compared to
around 20% in H115). The sequential manufacturing margin improvement in H215 was
mostly driven by the sequential sales increase, but also partially by the favorable foreign
exchange rate (stronger USD versus the EUR).
Electronics segment
(Euros millions) 2013-2014 2014-2015
Sales 167.5 177.7
Gross Profit 0.5 26.3
As a percentage of sales 0.3% 14.8%
Research and Development 7.1 13.0
Selling, General and Administrative expenses 19.8 16.3
Current Operating Income / (Loss) (26.4) (3.0)
As a percentage of sales -15.8% -1.7%
Other operating expenses 32.6 2.3
Operating Income / (Loss) (59.0) (5.3)
As a percentage of sales -35.2% -3.0%
Segment analysis – Solar
• The Solar division posted sales of 43.2 million Euros in FY14-15, down 45% compared to 78.9
million Euros in FY13-14.
o During FY14-15, the Solar division generated revenues in South Africa (24.0 million
Euros, equipment revenue recognition related to the Touwsrivier project), in the US
(12.5 million Euros from Desert Green and Department of Defense projects), in China
(3.5 million Euros) and in Europe (2.1 million Euros).
• The Solar division posted a current operating loss of 102.8 million Euros in during the fiscal
year FY14-15 (compared to a current operating loss of 93.6 million Euros during the fiscal year
FY13-14).
o For the second semester of the fiscal year FY14-15, the Solar division posted an
operating loss of 49.3 million Euros (compared to an operating loss of 53.5 million
Euros in H115).
o In H215, the Solar division also booked an exceptional charge (non-current charge) of
138.9 million Euros, related to the impairment of assets (mostly production equipment
for the San Diego and Freiburg sites) and various provisions (ongoing contracts, layoffs,
power plants dismantlement, etc.).
Solar segment
(Euros millions) 2013-2014 2014-2015
Sales 78.9 43.2
Gross Profit (56.6) (58.3)
As a percentage of sales -71.7% -135.2%
Research and Development 16.2 16.6
Selling, General and Administrative expenses 20.8 27.9
Current Operating Income / (Loss) (93.6) (102.8)
As a percentage of sales -118.6% -238.2%
Other operating expenses 49.8 143.9
Operating Income / (Loss) (143.4) (246.7)
As a percentage of sales -181.7% -571.7%
Segment analysis – Lighting
• The Lighting division posted sales of 2.0 million Euros in FY14-15 compared to 0.7 million
Euros last year. This growth resulted from the ongoing roll-out of a multi-year contract at a
customer in France as well as a one-off licensing revenue from a US customer.
• The Lighting division posted a current operating loss of 10.2 million Euros in during the fiscal
year FY14-15 (compared to a current operating loss of 5.8 million Euros during the fiscal year
FY13-14).
o For the second semester of the fiscal year FY14-15, the Lighting division posted an
operating loss of 6.0 million Euros (compared to an operating loss of 4.2 million Euros
in H115).
o The Lighting division also booked an exceptional charge (non-current charge) of 5.2
million Euros, related to the Phoenix R&D line (“S-LED” products).
Lighting segment
(Euros millions) 2013-2014 2014-2015
Sales 0.7 2.0
Gross Profit 0.4 1.3
As a percentage of sales 52.3% 62.1%
Research and Development 4.6 9.0
Selling, General and Administrative expenses 1.6 2.5
Current Operating Income / (Loss) (5.8) (10.2)
As a percentage of sales -780.8% -497.9%
Other operating expenses 0.0 5.2
Operating Income / (Loss) (5.8) (15.4)
As a percentage of sales -780.8% -753.4%
Segment analysis – “Corporate” activities
• “Corporate” activities generated a current operating loss of 9.9 million Euros in during the
fiscal year FY14-15 (compared to a current operating loss of 11.5 million Euros during the
fiscal year FY13-14).
o For the second semester of the fiscal year FY14-15, “Corporate” activities generated an
operating loss of 5.2 million Euros (compared to an operating loss of 4.7 million Euros
in H115).
Strategic refocusing is underway – significant milestone reached on May 21st
As announced in its press release of January 19 th 2015, the Board of Directors unanimously decided to
implement and support a strategic plan which aims to refocus Soitec’s activities on its core electronics
business.
Management has immediately taken important actions in the solar division in order to implement this
strategic refocus:
• Headcount reduction in the solar division down to 255 people at the end of April 2015,
compared to 385 people at the end of December 2014;
• Cash expenses reduction in the solar division down to EUR11.9 million in Q415, and the
company expects further significant sequential decline in Q116;
• Another important milestone was reached last week when Soitec announced the signing of an
agreement with ConcenSolar subject to regulatory approvals and other customary closing
conditions. ConcenSolar is a privately held company and a business partner of concentrator
photovoltaic (CPV) leader Suncore Photovoltaic Technology Co Ltd. The scope of the
transaction is yet to be determined precisely but shall encompass the manufacturing facilities- in
Freiburg, Germany and in San Diego, USA. Soitec shall retain for future disposal certain other
assets, including the ownership interests in certain solar power plants. Soitec will continue to
develop and bring to the market, based on its existing industrial capacity, a four-junction solar
cell (or “SmartCell™”) characterized by its world record efficiency. Financial terms of the
proposed deal were not disclosed. Upon finalization of the transaction, which should close in
the third quarter of calendar year 2015, Soitec expects to generate an accounting gain. The net
book value of Solar division assets and liabilities held for sale amounted 52 million Euros as
March 31, 2015. At this stage, this value includes the identified assets which are part of the
ConcenSolar transaction under consideration, Touwsrivier’s remaining related assets, the
building in San Diego and certain operating power plants. Consequently, the final outcome of
the divestment of the solar activities from a cash and earning’s perspective remains uncertain.
Cash resources at the end of March 2015 – New financing package closed in May 2015
Management anticipates additional actions to strengthen the Group balance sheet
Cash available at the end of March 2015 totaled 22.9 million Euros while gross debt totaled 173.0
million Euros, leading to a net debt of 150.1 million Euros. As announced on April 20 th 2015, Soitec
confirms that it has secured a financing package in May 2015 which includes:
• A loan financing of 54 million Euros with a maturity of April 2016. Shin Etsu Handotai (major
bulk wafers supplier to Soitec SA and historical shareholder) has committed to lend up to 30
million Euros. Bpifrance Participations, shareholder of Soitec has committed to loan up to 15
million Euros.
• The CEA, Soitec’s technology partner, has committed to lend up to 9 million Euros through its
CEA Investissement subsidiary’s “strategic fund”, specialized in the financing of innovative
companies developed by its European research centers. In addition, its microelectronics
research center CEA-Leti, which has developed SOI and continues to support its technology
roadmap, has accepted postponement of payment under its license agreements and for its work
realized for Soitec in 2014, for a total of 8 million Euros. Total CEA support amounts to 17
million Euros.
• Finally, current banks credit lines for a total of 37.2 million Euros at the end March 2015 have
been restructured with a single bullet reimbursement to be repaid in November 2019.
The loan financing of 54 million Euros has been successfully closed on May 27, 2015.
Soitec will continue to explore further opportunities to strengthen its balance sheet.
Outlook
While the Group reported important operating and net losses for the fiscal year 2014-15, mostly due to
the burden of its solar activities, management wishes to highlight that its refocusing execution plan on
core business is progressing well.
Electronics activities currently driven by RF-SOI and power applications remain strong. Additionally,
Soitec wafer business showed a strong margin improvement in fiscal year 2014-15, despite the low
utilization rate of its 300mm wafers manufacturing lines. In order to take benefit of this significant
potential leverage, demand must increase for 300mm wafer products. Soitec welcomes increased
traction from FD-SOI ecosystem (foundries, fabless, design, etc.), and is well positioned to capture this
growth.
For its first quarter of its fiscal year 2015-16 (ending June 30th 2015), Soitec management reiterates that
its short term guidance with wafer sales for the Electronic division of around 60 million USD.
Agenda
Sales results for the first quarter of financial year 2014-2015 will be published on July 21 st 2015 after the
closing of the Paris Stock Exchange.
About Soitec:
Soitec (Euronext, Paris) is a world leader in designing and manufacturing high performance
semiconductor materials. The company uses its unique technologies and semiconductors expertise to
serve the electronics and energy markets. With 3,600 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, US and Asia
©2025 Soitec
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