Soitec, Bernin Ord New

Welcome to Soitec first quarter sales presentation for fiscal year 2027. Today's conference will be hosted by Laurent Roman, Chief Executive Officer, and Albin Jackmont, Chief Financial Officer. For the first part of the conference, the participants will be on listen-only mode. During the questions and answers session, participants will be able to ask questions by dialing hashtag 5 on their telephone keypad. Now I will hand the conference over to Laurent Roman to begin today's conference. Please go ahead.

Hello, everyone, and thank you for joining us today for Soitec's first quarter 2027 sales conference call. I'm Laurent Raymond, CEO of Soitec. With me on the call today, Albin Jacquemont, our CFO, and Alex Petovary, head of investor relations, financing, and treasury. Before turning to the quarter, let me briefly explain why we decided to bring forward to this publication. Since the start of the second quarter, customer demand for photonic SOI has accelerated faster than expected. At the same time, the action plan I set out to increase our photonic SOI production output has started to deliver positive results. These developments gave us materially greater visibility on the pace of our photonic SOI ramp. Consistent with our commitment of transparency, rigor, and timely communication, we choose to update you ahead of schedule. With that, let me turn to the three key takeaways from the first quarter. We deliver a stronger than expected start of the financial year. Revenue reached 113 million euro, up 23% year on year at constant currency and scope, well above our guidance of around 15%. This performance was primarily driven by the continued acceleration of AI-related activities with Photonic SOI sales doubling year on year. Second, the momentum on Photonic SOI is accelerating. Photonic SOI demand remains supported by growing need for high speed, high bandwidth, optical connectivity in data center infrastructure. Our medium-term visibility in photonic SOI is also improving through multi-year commitment from a growing number of customers. These commitments extend beyond fiscal year 27. The group remain focused on scaling its photonic SOI production capacity to support accelerating demand. During the quarter, we achieved an important industrial milestone with the qualification of our Singapore 300 millimeter SOI fab for high volume manufacturing of photonic SOI with first customers. Finally, we continue to execute with discipline and remain committed to strategic direction we set out in May. We are tracking to the plan we set out. With the company position on the cash generation path, revenue is now back to growth, having the way for improved profitability. With that introduction, let me hand over to Albain, who will take you through the quarter in more details.

Thank you all. Good morning, everyone, and thank you for joining us on short notice. Lauren, I greatly appreciate your time and your participation today. Let me now walk you through our first quarter performance, starting out with mobile communications. Mobile communications generated 39 million euros in revenue during the quarter, down 10% year over year on a constant currency and scope basis. Against the backdrop of a still challenging smartphone market, COI adoption continued to gain momentum, while RF SOI customers made further progress in reducing inventory levels. RF SOI revenues were broadly stable year over year, as higher 300 millimeter revenues offset lower 200 millimeter revenues. POI revenues were also broadly flat, as higher volumes from continued technology adoption were offset by lower pricing. POI's position as a core substrate for next generation architectures was further reinforced by the long-term agreement recently entered into with Skyworks, which gives the group greater medium-term visibility. FDSOI revenues were lower year over year, mainly reflecting volume effects in the subdued mobile markets. Turning now to Edge and Cloud AI. Revenues reached 65 million euros in the quarter, up 47% year over year on a constant currency and scope basis. This strong performance was primarily driven by Photonics SOI, where revenues doubled year over year. Demand continues to be supported by the growing need for high-speed, high-bandwidth optical connectivity across AI data center infrastructure, including pluggable transceivers, near-package optics, and co-package optics architectures. In addition to another strong quarter, we continue to strengthen our medium-term visibility through multi-year customer commitments and associated cash deposits with these commitments now extending beyond fiscal year 2027. This momentum continued into the second quarter, reinforcing our confidence in the pace of a ramp up and our medium term growth trajectory. As Laurent noted previously, during the first quarter, we qualified our Singapore facility with the first customers for 300 millimeter Photonics SOI production. This is an important milestone that gives us confidence in the ramp up trajectory as we continue to advance additional customer qualifications. FDSOI revenues in Edge and Flare AI also grew year over year benefiting from a modestly favorable price mix contribution. Let me now turn to edge to the automotive and industrial. Revenue reached 10 million euros in the quarter, representing 108% year-over-year growth on a constant currency and constant scope basis, albeit off a low comparison base. Activity remains subdued as some customers continue to work through elevated inventory levels. Nevertheless, we continue to benefit from strong visibility into 2028 underpinned by a long term agreement with a key customer. Power SOI revenue grew year over year driven by higher 200 millimeter volumes complemented by the initial contribution from 300 millimeter products. Automative FTSOI wafer revenues also increased year on year supported by larger volumes. The technology continued to gain traction in applications such as automotive radar, microcontrollers, and other analog and mixed signal systems. With that, let me hand back to Laurent for the outro.