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Welcome to the Soitec Half-Year Results 2025-2026 presentation. Today's conference will be hosted by Pierre Barnabé, Chief Executive Officer, Albin Jackmont, Chief Financial Officer, Steve Boborek, EVP, Chief Strategy Officer, and Alexander Petivary, Head of Investor Relations. For the first part of the conference, the participants will be on listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to Pierre Barnabé to begin today's conference. Please go ahead.

Hi everyone and welcome to Soitec H126 Results Conference. I'm Pierre Barnabé, Soitex CEO, and I'm very pleased to be with you today, as well as with Albain Jacquemont, our Chief Financial Officer, Steve Beverick, Chief Strategy Officer, and Alexandre Petrovary, Head of Investor Relations. Before we begin, please take a moment to read the disclaimer included in this presentation. We have a lot to cover today, but before we start the formal presentation, let me share a few words about the current fiscal year. Fiscal year 26 is a special year for Soitec. As you know, I have decided to leave the company at the end of March after four years, and I personally recruited Albin as our new CFO giving him a clear mandate to strengthen our financial discipline and clean up our balance sheet. This job has already been done and done very well. H126 reflects that discipline and the priorities we set back in May, meaning focus on what we can control give absolute priority to cash, and take deliberate, sometimes tough, actions to correct inventories and improve cash conversion. These actions have been fully launched, but their impact has just started to materialize. We are being methodical and sequential, managing our own inventories, optimizing working capital, and adjusting our cost structure accordingly while maintaining selective investments in strategic areas. At the same time, we are progressing on multiple fronts, expanding our product portfolio, preparing for new end markets, and rolling out our new client and product-centric organization. which positions us to capture the next phase of growth. Our incubators, introduced last May, are also delivering promising results. We are identifying significant opportunities as key players explore SOI for advanced computing applications and memory. This is a large and fast-growing market, and we are at the forefront of materials innovation, combining cutting-edge R&D capabilities with the ability to industrialize rapidly and produce at scale, a unique differentiator for Soitec. This initiative comes with a high risk-reward profile, so we will remain prudent in our until we see clear customer engagement. That said, recent developments confirm that our efforts are well targeted and aligned with where the market is heading. As you will see, I have asked the teams to continue executing this disciplined plan, combining financial rigor and strategic focus, so that Soitec emerges stronger and ready for its rebound. Let's begin with the main highlights of our first half year. Our H126 performance reflects the actions we have taken to strengthen cash generation with lower production volumes to support the reductions of inventories. Revenue reached 231 million euros, down 29% organic compared with last year. Our 34.1% EBDA margin mainly reflects the smaller revenue base and the temporary increase in inventories supported by continued volume production. Initial cost measures have had limited impact so far, as expected, given their recent implementation. Their benefits will start to materialize in the coming quarters. Finally, our €26 million operating cash flow reflects our effort to reduce production volumes to correct inventories and a temporary increase in working capital as inventories rose in H1 to support our H2 deliveries, partly offset by lower capex. Looking at revenue by quarter, Q2 confirms the expected rebound from our low Q1 26 with a 47% sequential organic increase. Our first half revenue reflects different dynamics across divisions. Strong growth from AI-related product, with the Edge and Cloud AI division up 34%, organic year on year, excluding the impact of the anticipated major SOI phase out, offset by continued weakness in mobile and automotive. Let's start with mobile communications. H1 revenue reflects the continued inventory correction at certain foundry customers as anticipated. RFSOI inventories remain high, but they are going in the right direction. We expect further correction in H226 and fiscal year 27. We also continue to expand beyond RFSOI. DUI remains a major growth driver, with 11 customers in production and 12 in qualification. While we saw a temporary slowdown in Asia after a very strong initial ramp last year, adoptions continue to expand among leading fabless companies, supported by new design wins for flagship smartphones. Beyond RFSOI. we continue to make solid progress in next generation communication product with FDSOI adoption advancing in Wi-Fi 7 SOCs for premium smartphones, confirming our position in future communication architectures. We are also progressing in our 18 nanometers FDSOI roadmap, as shown by the announcement on Tuesday of a design win from a key customer. FDSOI technology brings advanced low-power computing with high level of reliability, which is critical for satellite communications applications. Our Edge and Cloud AI divisions continues to show strong momentum. In the first half, revenue reached 96 million euros, flat-ish organic year on year, but up 34% when excluding the anticipated imager SOI pays out, reflecting robust demand for AI-related products. The increase was mainly driven by higher photonics SOI sales, benefiting from AI-driven investment in data center infrastructures, and by strong demand for FDSOI across both edge and cloud applications. On Photonics SOI, we are leveraging the AI acceleration across the industry, supported by large-scale CapEx investment. The technology stands out as the most efficient solution for high-speed optical interconnects, including co-packaged optics, which enable faster, more energy efficiency and cost-effective data centers architectures. Photonics SOI continues on its fast growth trajectory, from a very low point in fiscal year 22 to approaching $100 million in revenue for fiscal year 26. On FDSOI, our product portfolio continues to expand, supporting new generations of AI computing devices and edge applications with strong customer engagement and committed capacity investments. On IMAGER SOI, we completed the phase out of first generation product in H126, which represented an impact of around $32 million. Residual purchase order in Q226 generated a few million euro revenue. Let's move to automotive and industrial, where market weakness continues to weight on activity. In a challenging automotive context, we continue to see increasing adoption of our products and rising content per vehicle, driven by infotainment, autonomous driving, functional safety, and electrification trends. PowerSY sales were impacted by inventory adjustment at customers following a strong restocking at the end of last year. We are preparing the transition to 300 mm to meet growing demand for battery management systems and vehicle electrification applications. FDSY adoption continues to progress. Supported by leading foundries and IDMs developing automotive solutions for ADAS, and edge computing in radars, microcontrollers, and wireless connectivity. On SmartSIC, we have revised downwards the market perspective set when Soitec launched the program in 2021, reflecting intensified competition from Chinese MonoSIC players. We are continuing. to qualify five customers. While we are seeing growing interest in SmartSAC's efficiency benefits for next generation power supply and data centers applications, these opportunities are unlikely to materialize in the near term. Let me now say a few words about our new organization. which the entire executive committee has been working on for several months. This new client and product-centric structure strengthens Soitec's readiness to expand into new SOI and beyond SOI and markets and applications. It is built around four key pillars. One, the acceleration of our product portfolio expansion and diversification. structured around five established product lines, ready industry standard, all on their way to becoming so. FDSOI, Photonics SOI, RF SOI, POI, and Power SOI. Recent progress on the product development front supports our strategy to enter new markets and new applications with SOI and beyond SOI. Two, a more balanced customer, supplier, and geographic base, expanding our ecosystem's influence. Three, an innovation powerhouse driven by more targeted R&D investment focused on future growth opportunities. And four, agile industrial capacity management, ensuring optimized utilization for state-of-the-art production tools and greater asset fungibility across sites. Let me now leave the floor to Alban for the financial review. Thank you, Alban.

Thank you, Pierre, and good morning, everyone. Let me begin with the key financial highlights for the first half, some of which Pierre has already touched upon before taking you through the details of our financial performance. As Pierre mentioned, we have mandated teams across the organization to reinforce financial discipline and accelerate the cleanup of our balance sheet. I will update you on the progress we have made on this front. Our first half results reflect the deliberate actions we have taken to initiate a reduction in inventories in the second half of the year and to strengthen cash generation. all while maintaining close oversight of customer demand and inventory levels. We delivered revenue in line with our first half guidance, although organic revenue declined 29% year-on-year, reflecting continued complexity of the market environment. Our EBITDA margin improvement is largely attributable to a lower revenue base and should be viewed in conjunction with a temporary increase in inventories supported by ongoing production volumes. Our net result was minus 67 million euros, primarily reflecting non-recurring items including the smart SIC impairment and the one-off non-cash foreign exchange conversion loss recorded in the first quarter. Excluding these non-recurring defects, current net income was broadly stable at minus 2 million euros. Free cash flow was minus 31 million euros, reflecting seasonality, lower revenue, and a temporary increase in inventories ahead of second-half deliveries, partly offset by lower capital expenditures. Turning to the balance sheet, our position remains solid. We closed the half year with 483 million euros in cash and investment. For format, the repayment of the OCEAN, which took place on October the 1st, October 2025, and with 145 million euros in net debt. This maintains a robust financial profile with 0.5x EBITDA leverage, including leases recorded under IFRS 16, and provides us with ample flexibility to support our strategic and financial priorities. Pierre already addressed the revenue performance, so let me move directly to the P&L. As you heard from Pierre, Reducing working capital and reinforcing cash generation are top priorities, and we have advanced on these fronts. First, we actively managed fat utilization to better align production with plant deliveries, thereby paving the way for a reduction of our own inventories in the coming months. Second, we launched a comprehensive cost reduction program addressing our major cost drivers. Third, we scaled back capital expenditures. These actions are all aligned with our objective to enhance cash generation, improve operational efficiency, and secure lasting savings across the company. while preserving our technological capabilities. The key message I would like to leave you with is that while these actions will take a few months to translate into meaningful results, we will remain relentless, systematic, and disciplined in their execution. Gross margin declined 490 bps Uranure driven by three factors. The disposal of dolphin design representing 120 basis points. Lower fab loading as an initial step towards reducing inventories. And an unfavorable mixed price effect. Going into H2 2026. do expect a significantly lower loading of our fabs, and that will weigh, obviously, on our gross profits. Net R&D expenses decreased by 23 million euros year-on-year, reflecting the disposal of Dolphin Design, a favorable phasing of public funding, and lower material purchases linked to reduced use of pilot lines. Excluding the effects of the dolphin design disposal and the timing of public funding, growth R&D spent was broadly stable year on year, underscoring our continued commitment to technology leadership. SG&A expenses declined by 6 million euros compared with the prior year, driven by lower compensation-related expenses, tighter control of discretionary spending, and the disposal of dolphin design. Other operating expenses totaled 46 million euros, and include a 41 million euros in payment loss on smart SIC, non-current assets, following a downwards revision of business prospects as a result of increasing competition from Chinese players, and a 3 million euros downwards adjustment to the earn-outs related to the disposal of dolphin design. As a reminder, the Smart SIC program was launched well before 2022, at a time when prices for alternative competing products were significantly higher than they are today. Dolphin Design acquired in 2018 generated 40 million euros of operating losses over the period since its acquisition. We also incurred a 17 million euros one-off non-cash foreign exchange conversion loss in Q1 of our financial year. This loss results from the reevaluation of balance sheet foreign exchange exposures following the depreciation of the U.S. dollar against the Euro, with the Euro-USD moving from 1.08 at the end of March 2025 to 1.18 at the end of June 2025. As background, In 2021, the company began contracting Euro-denominated loans at the level of our affiliate in Singapore whose accounts are kept in US dollars. Converting Euro-denominated debt into US dollars had been beneficial to our financial results as long as the US dollar was appreciating against the Euro. and we repeatedly recorded foreign exchange gains. However, in Q1 of our 2026 fiscal year, the situation reversed, leading to the foreign exchange loss recorded this quarter. Because experiencing significant foreign exchange volatility on our results is clearly not in line with our standards, we took action. As a first step, we implemented appropriate hedging instruments to prevent foreign exchange movements from impacting our financial results. This is now in place. In addition to that, we engaged external advisors to conduct a comprehensive review of our foreign exchange risk management framework, and this review is now well advanced. Now moving to the free cash flow. First, let me note that we have aligned our definition of free cash flow with prevailing market practices. Updated definition incorporates three key changes. First, all tangible and intangible capital expenditures are included in the free cash flow calculation regardless of how they are financed. Capital expenditures that were previously funded through finance leases and therefore excluded from the capex base are now fully taken into account. Second, free cash flow now includes both interest received and interest paid, as well as other financial expenses. Previously, only interest received was taken into account in the free cash flow calculation. Lastly, the free cash flow definition now excludes inorganic capex, which incidentally was nil over the period. Operating cash flow was 26 million euros for the period. down 103 million euros year on year, mainly reflecting lower EBITDA and an increase in working capital driven by higher inventories built ahead of deliveries scheduled in the second half of the year. Working capital resulted in a cash outflow of 57 million euros compared with an inflow in the prior year. This primarily reflects the seasonal buildup of inventories to support second half deliveries and the reduction in trade payables, partly offset by a decrease in trade receivables following the strong fourth quarter 2025 activity. Capital expenditures were largely directed towards industrial investments, including manufacturing tools for SOI and POI products in Burnham and Singapore, upgrades to our industrial facilities, and targeted IT investments to enhance operational efficiency. This results in minus 31 million euros of free cash flow under the new definition. We maintained a moderate leverage ratio with net debt to EBITDA at 0.5 times EBITDA at the end of H1 2026. Let me conclude my remarks with a few comments on the balance sheet. As part of a financial discipline mandate issued by Pierre to the Deems, we have carried out a restatement of a prior account. In accordance with IAS 8, we have retrospectively restated consigned raw materials as inventories with a corresponding amount recorded as trade payables to reflect the transfer of control upon received at our site. This restatement has no impact on the group consolidated income, EBITDA, working capital, free cash flow, or equity. As a result, 37 million euros of additional inventories and trade payables were recognized as of March 2025. For context, this compares with 31 million euros of consigned inventories as of September 30, 2025. As of September 30, 2025, Cash stood at 808 million euros, reflecting a temporarily high level of liquidity ahead of a repayment of 325 million euros OCEAN 2025 bonds, which took place on October 1, 2025. Post OCEAN repayment, net cash was 483 million euros at closing. As of September 30, 2025, we are undrawn on the maximum €150 million use of proceeds loan secured from EIB. Our available liquidity, post-AUSEAN repayment, including our undrawn confirmed revolvers, was €603 million. Financial debt. totalled €953 million, up from €782 million at the end of March 2025, reflecting the new €200 million should shine loans and prior to the ASEAN repayment. This brings my prepared remark to a close. As you can see, we did not shy away from making tough decisions. As I mentioned, Our first half performance reflects the mandate to take decisive actions on inventories, strengthen balance sheet discipline, reduce costs, and improve cash conversion. While the initial measures were implemented in the first half, we will accelerate and amplify these actions in the second half. and expect to see inventory improvement by year end. Our focus remains laser sharp on generating positive free cash flow under the new definition by the end of the fiscal year. At this point, let me pass you on to Pierre to take you to our strategic priorities and guidance.