SOITEC : ESTIMATED FY 2015-2016 RESULTS

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Estimated FY 2015-2016 results

• In the context of the previously announced proposed capital increases, Soitec is exceptionally reporting its estimated FY 2015-2016 results

Bernin, France, May 2, 2016 - Soitec (Euronext Paris), a world leader in generating and manufacturing revolutionary semiconductor materials for energy and electronics, today announced its unaudited^[1] estimated FY 2015-2016 results. These estimated FY 2015-2016 results were approved by the Company's Board of Directors on April 29, 2016.

Estimated consolidated results for FY 2015-2016

As announced on April 13, 2016 (http://www.soitec.com/en/investors/financial-press-releases/article-1826/), consolidated revenues came to 237.5 million euros in FY 2015-2016, split between Electronics (232.3 million euros, in line with the forecast given by the Company in the update to its 2014-2015 Registration Document dated March 7, 2016) and other activities (5.1 million euros). Revenues are up 17% at constant exchange rate (FY 2015-2016 revenues converted using FY 2014-2015 exchange rate) compared with the previous financial year (FY 2014-2015).

The estimated gross profit rose to 60.8 million euros in FY 2015-2016 (25.6% of revenues), up from 28 million (15.6% of revenues) in the previous financial year. This increase was chiefly attributable to the growth in 200mm wafer sales for radio-frequency applications and also the favorable trend in the euro/dollar exchange rate.

The estimated FY 2015-2016 current operating income came to 12.4 million euros, compared with a current operating loss of 31.8 million euros in the previous financial year. This positive change reflected the improvement in gross profit in the Electronics segment and further cost-cutting efforts.

The estimated FY 2015-2016 operating income totaled 19.4 million euros, compared with an operating loss of 59.4 million euros in the previous financial year. This loss reflected a net amount of 31.8 million euros recognized in other operating expenses, mainly as a result of the impairment loss of over 22 million euros recognized in the financial statements at December 31, 2015 (industrial building in Singapore and assets of the Altatech subsidiary, in which Soitec sold its shares at the end of March 2016), advisory fees related to the restructuring launched at the beginning of the financial year and legal fees arising from the industrial property litigation in progress in the United States.   

The estimated net loss for FY 2015-2016 came to 71.7 million euros, compared with a loss of 258.7 million euros in the previous financial year. This loss included net financial expenses, tax expense and the loss incurred by discontinued operations, mainly reflecting the unfavorable impact of the change in exchange rates on translation differences and intra-group financing arrangements. The net loss from discontinued operations did not change significantly in the fourth quarter of FY 2015-2016, it being recalled that the net loss from discontinued operations stood at 26.3 million euros in the first nine months of FY 2015-2016.

* In accordance with IFRS 5 "discontinued operations", the consolidated income statement was restated for the Solar segment activities.

The Company estimates that the Electronics segment's EBITDA margin (relative to revenues) for FY 2015-2016 was in line with its previous forecast of around 15%.

Estimated financial data for FY 2015-2016

For FY 2015-2016:

• Estimated non-current assets stood at 159.9 million euros, down slightly compared with the 161.8 million euros recorded in the financial statements at December 31, 2015, with the decrease resulting chiefly from the recurring depreciation and amortization recognized in the fourth quarter of FY 2015-2016. The value of the non-current assets that underwent impairment testing at the December 2015 close was not called into question;
• Estimated cash and cash equivalents declined by 2.7 million euros from 51.8 million euros at December 31, 2015 to 49.1 million euros at March 31, 2016;
• Estimated gross debt was stable at 218.9 million euros at March 31, 2016, compared with 217.5 million euros at December 31, 2015;
   
• Net equity remained in negative territory at -7.1 million euros at March 31, 2016, compared with                -0.8 million euros at December 31, 2015. This deterioration reflected the net loss recognized in the fourth quarter of FY 2015-2016 (2.6 million euros), the impact of exchange rate fluctuations on an intra-group loan covering capital expenditures and costs arising from the capital increases in progress.

Recent trends in Soitec's financial position

The three capital increases reserved respectively for Bpifrance Participations, CEA Investissement and NSIG Sunrise^[2], in a total gross amount of around 76.5 million euros (net proceeds of around 74.5 million euros), due to be finally completed today will restore the Company's equity base and strengthen its cash position.

The Company will thus be in a position to repay the bridge loans granted by Bpifrance Participations, CEA Investissement and Shin Etsu Handotai due to mature at the end of May 2016 (around 50 million euros).

Outlook concerning the Electronics business unchanged^[3]

For FY 2016-2017, growth in demand for products used in radio-frequency (RF) applications and power electronics applications (Power) should be robust and offset the effects arising from the end of the lifecycle of PD-SOI products. If that were the case, the Company would target (at constant exchange rates) a single-digit revenue growth rate for the Electronics business from FY 2015-2016 and an EBITDA margin (relative to revenues) of the Electronics business of the same order as in FY 2015-2016.

More specifically for business trends in the first quarter of FY 2016-2017, Soitec expects revenues to be roughly in line with those generated in the first quarter of FY 2015-2016 in the Electronics business at constant exchange rates (i.e. a sequential decrease of approximately 15% compared with the fourth quarter of FY 2015-2016).

In the longer run, Soitec intends to capitalize on the promising outlook associated with the adoption of FD-SOI on a large scale in the semiconductor industry.

Soitec S.A. invites readers to refer to the information set forth in sections 12 and 13 of the update to its 2014-2015 Registration Document filed with the French stock market authority (Autorité des marchés financiers, the "AMF") on March 7, 2016 under no. D-15-0587-A01 and sections B.4.a and B.9 of the summary of the prospectus approved by the AMF on March 18, 2016 under no. 16-085 (the "Prospectus"). Soitec S.A. draws investors' attention to the "Risk factors" sections of the Prospectus, set forth in Chapter 4 of the Registration Document filed with the AMF on June 10, 2015 under no. D.15-0587 and in Chapter 4 of the update to the Registration Document filed with the AMF on March 7, 2016 under no. D-15-0587-A01, as well as in Chapter 2 of the securities note forming part of the Prospectus. The realization of all or some of these risks may have a material adverse effect on the business, assets, financial position, results or outlook of the Soitec group and on the market price of Soitec S.A. shares.

Agenda

The Company will determine subsequently the preparation and publication date of its full and audited financial statements for FY 2015-2016.

Important Notice

The press release contains information regarding the objectives of Soitec and of the companies within its scope of consolidation (the "Group") and prospective statements regarding in particular its present or future projects. This information is sometimes identified by the use of the future or conditional and prospective terms such as "believe", "expect", "may", "reckon", "consider", "aim", "intend", "wish", "envisage", "anticipate", "should" or, where applicable, the negative form of these terms, or any other variation or similar terminology. This information is not historic data and should not be interpreted as guarantees that the given facts and data will occur. This information is likely to be affected by known and unknown risks, and to evolve or be amended because of uncertainties and other factors related in particular to the economic, financial, competitive and regulatory environment which could have the effect that the future results, performances and profits of the Group are significantly different from the objective expressed or suggested. The information in this press release is information as at the date of this press release. Except for any applicable legal or regulatory obligation, the Group makes no undertaking to publish updates to the prospective information contained in this press release in order to reflect any change affecting the objectives or events, conditions or circumstances on which the prospective information contained in this press release is based, noting that none of this prospective information constitutes a guarantee of the actual results.

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With respect to the member states of the European Economic Area other than France (each a "Member State") having implemented the Prospectus Directive, no action has been or will be taken in order to permit a public offer of the securities which would require the publication of a prospectus in any Member State. In each Member State, the information contained herein is addressed solely to persons who are "qualified investors" within the meaning of the Prospectus Directive. 

The securities mentioned in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered, or sold in the United States in the absence of such registration or an applicable exemption from the registration requirement under the Securities Act. Soitec S.A. does not intend to register any portion of the planned offering in the United States or to conduct a public offering of securities in the United States.

This press release is neither an invitation nor an inducement to engage in investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000, as amended ("FSMA"). This press release is directed only at (i) persons outside the United Kingdom, (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order  2005 (the "Order"), (iii) persons referred to in Article 49(2) (a) to (d) of the Order (high net worth entities, non-registered associations, etc.) and (iv) other persons to whom this document may be lawfully communicated (all persons listed in (i), (ii), (iii) and (iv) above being referred to as "Relevant Persons"). The securities of Soitec S.A. described herein are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person must not act or rely on this document or any of its contents.

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About Soitec

Soitec (Euronext, Paris) is a world leader in designing and manufacturing high performance semiconductor materials. The company uses its unique technologies to serve the electronics and energy markets. With 3,600 patents worldwide, Soitec's strategy is based on disruptive innovation to respond to 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. For more information, please visit www.soitec.com.

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