Slides
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H1 2026 Results Presentation 7 September 2026
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IQE plc 2IQE plc | H1 2026 Results Presentation Disclaimer This presentation has been prepared by IQE plc solely for information purposes and should not be considered to be an offer or solicitation to buy, sell or subscribe for any securities, financial instruments or any rights attaching to such securities or financial instruments. This presentation may contain forward-looking statements. Forward-looking statements can be identified as anything other than statements of historical fact contained in this presentation and by their nature are subject to uncertainty and risks. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for IQE plc. These expectations, estimates and projections are generally identifiable by statements containing words such as “believes,” “estimates,” “targets,” “plans,” “outlook,” “on track,” “may,” “will,” “could,” “should” or similar expressions. IQE plc faces risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from any forward-looking information disclosed in this presentation and which could affect our ability to achieve any or all of our stated targets or anticipated transactions. Important factors that could cause such differences include, but are not limited to: • business risks relating to macroeconomic and geopolitical matters; • unanticipated costs, such as those associated with compliance activities; • market acceptance of new products and services; • changes in governmental regulations and currency exchange rates; and • general market conditions. Although IQE plc believes that the expectations, estimates and projections constituting any forward-looking statement in this presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved. As forward-looking statements are statements regarding our intent, belief or current expectations, they are not guarantees of future performance. Actual performance and results may differ materially from those described in this presentation. Readers are cautioned not to place undue reliance on these forward-looking statements. The information contained in this presentation is provided as at the date of presentation and is subject to change without notice. Whilst the presentation has been prepared in good faith, no representation or warranty, express or implied, is give by IQE plc or its representatives as to the accuracy or completeness off the information or opinions in the presentation. IQE plc and its representatives shall have no liability whatsoever, whether under contract, tort, trust or otherwise, to you or any other person resulting from the use of, or reliance on, any information in this presentation. Any dispute, action or other proceeding relating to this presentation shall be adjudicated within the exclusive jurisdiction of the courts of England. All material in this presentation shall be governed by the laws of England and Wales.
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Jutta Meier Chief Executive Officer Welcome
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IQE plc 4IQE plc | H1 2026 Results Presentation Delivering commercial and strategic progress Conclusion of Strategic Review £81m total investment from MACOM and existing shareholders MACOM Technology Solutions Multi-year supply agreements Tower Semiconductor Multi-year Indium Phosphide epiwafer supply agreement $14m AI and data centre order Production order with strategic global technology customer Quintessent Inc. Purchase agreement for the supply of Quantum Dot Laser epitaxy 27 April 2026 27 April 2026 15 June 2026 14 July 2026 3 September 2026 Strong order book and long-term agreements providing greater visibility
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IQE plc 5IQE plc | H1 2026 Results Presentation Strong demand across all core markets Multiple routes into high-growth sectors AI and data centres Consumer electronics Communications infrastructure Aerospace and defence Automotive and industrial • InP and GaAs optical interconnects • Advancing energy efficient microLED data transfer with partners serving hyperscalers • High-efficiency power supply units • Mobile base station infrastructure serving high-frequency and power RF networks • HBT technology into high-frequency consumer connectivity applications, including WiFi 7 • Next-gen 3DS VCSEL for future premium consumer devices • MicroLED for augmented reality and next-gen display applications • Advancing wearable sensing applications with ecosystem partners • GaN RF pipeline expansion across terrestrial, satellite including LEO and defence radar platforms • Expanded global infrared customer base across new geographies • Long-wavelength infrared and dual- band products for Tier 1 autonomous vehicle and defence customers • US foundry partner expansion, securing supply for 100V & 650V nodes InP, GaAs, GaN InP, GaN, GaAsGaAs, GaN GaN, GaAs, GaSb, InP, InSb GaN, GaAs, GaSb Material systems glossary: InP – Indium Phosphide, GaN – Gallium Nitride, GaAs – Gallium Arsenide, GaSb – Gallium Antimonide, InSb – Indium Antimonide
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IQE plc 6IQE plc | H1 2026 Results Presentation Operational excellence • Improving yields, output and operational efficiencies • Matthew Geen appointed as Chief Operating Officer to drive further progress and strengthen operational oversight • New customer engagement model driving supply agreements, future order visibility and optimised utilisation • Converting tooling in H2 to expand Indium Phosphide capacity to meet significant demand in AI and data centre markets Strengthening oversight and continuous improvement
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Financial review H1 2026 Results Presentation
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IQE plc 8IQE plc | H1 2026 Results Presentation H1 2026 revenue: £64.6m Up 40% year-on-year Up 45% year-on-year Total Wireless Total Photonics 2024 2025 H1 H2 H1 H2 H1 2024 2025 H1 H2 H1 H2 H1 2026 2026 • Continued growth in AI and data centre-related markets • Funding releases for certain US military and defence programmes Revenue £26.0m Revenue £38.5m £m£m 26.8 23.1 26.6 30.5 38.538.8 28.5 18.6 21.5 26.0 • Market share gains and increased sales of wireless mobile connectivity solutions across newly qualified customer platforms
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IQE plc 9IQE plc | H1 2026 Results Presentation 1. Adjusted EBITDA is a non-IFRS measure and may be calculated differently and therefore not directly comparable to other companies.. 2. Adjustments include restructuring costs and share-based payment charges. 3. Adjusted net cash is calculated as cash less borrowings but excluding lease liabilities. H1 2026 financial highlights £’m £’m £’m Adj. EBITDA1,2 Adj. operating cashflow2Revenue • Increased 43% year-on- year • Increased as a result of higher revenue base and improved gross margins • Working capital outflow of £4.0m (H1 2025: £4.6m inflow) £30.2m at 30 June 2026 Cash and cash equivalents of £41.6m as at 30 June 2026 Adj. net cash3 45.3 64.6 H1 2025 H1 2026 (0.4) 6.0 H1 2025 H1 2026 7% 9% (1%) 6.2 4.7 H1 2025 H1 2026
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IQE plc 10IQE plc | H1 2026 Results Presentation Net cash bridge (£31.5m) £8.7m (£4.0m) (£3.5m) (£4.2m) (£1.1m) (£0.8m) (£2.3m) £65.8m £3.1m £30.2m (£50.0m) (£40.0m) (£30.0m) (£20.0m) (£10.0m) - £10.0m £20.0m £30.0m £40.0m
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IQE plc 11IQE plc | H1 2026 Results Presentation Current trading and outlook • Trading in H1 2026 exceeded management expectations, supported by strong demand across all of the Group’s core segments. • Following the July trading update and upgraded guidance, the Group has continued to see strong momentum in the second half, which is expected to support growth through the remainder of 2026 and beyond. • IQE remains confident in achieving its FY 2026 guidance of revenue growth in excess of 30% year-on-year, resulting in low-teens £m adjusted EBITDA. • The Group also sees potential for upside opportunities in optical communications for data centre and AI infrastructure, underpinned by recently signed supply agreements.
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IQE plc 12IQE plc | H1 2026 Results Presentation Move to Main Market • Intention to apply for admission to trading on the Main Market of the London Stock Exchange • Board believes this is the natural progression in IQE's development as a global semiconductor materials business • Targeting admission in H1 2027
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IQE plc 13IQE plc | H1 2026 Results Presentation A focused strategy for a transformed IQE Market expansion • Strong demand across all core segments • Multiple routes to growth • Broad technology portfolio Customer alignment • Long term agreements with strategic customers • Strong order book • Improved demand visibility Operational excellence • Efficiency driving yield and production improvements • Increased oversight A fully funded balance sheet with increasing revenues and margins Providing a clear path to sustainable growth
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Appendix
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IQE plc 15IQE plc | H1 2026 Results Presentation Summary financials 1 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and certain non -cash charges, non-operational items and significant infrequent items set out in slide 19. 2. Capex stated is Property, Plant and Equipment cash capex. 3 Adjusted net cash/(debt) is calculated as cash less borrowings but excluding lease liabilities. 4 Cash and cash equivalents includes restricted cash of £3.7m. *H1 2025 has been restated to reclassify the gain from foreign operations from other reserves to the income statement, consis tent with the audited 31 December 2025 financial statements. The restatement reduced the loss by £8.2m, reduced the reserves transfer by £8.2m and reduced basic and diluted loss per shar e by 0.85p. There was no impact on net assets or cash. £’million H1 2026 H1 2025* Revenue 64.6 45.3 Sales, general & administrative costs (14.1) (16.3) Adjusted EBITDA1 6.0 (0.4) Adjusted LBIT (3.7) (12.9) Reported LBIT (8.1) (15.3) Reported loss before tax (12.6) (18.3) Reported loss after tax (12.9) (17.9) Adjusted net cashflow from operations 4.7 6.2 Reported net cashflow from operations 1.2 3.6 Capital expenditure2 (1.1) (1.0) Adjusted net cash/(debt)3,4 30.2 (23.5) Reported net debt (12.3) (69.8) Cash and cash equivalents4 41.6 17.0 Reported Diluted EPS (1.25) (1.84) Adjusted Diluted EPS (0.82) (1.60)
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IQE plc 16IQE plc | H1 2026 Results Presentation Adjusted income statement items H1 2026 H1 2025 £'million Cash Non-cash Total Total Share based payments - 2.2 2.2 1.4 Photonics CGU impairment - - - 7.6 Restructuring 2.2 - 2.2 (6.7) Total 2.2 2.2 4.4 2.3
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IQE plc 17IQE plc | H1 2026 Results Presentation Balance sheet As at 30 June 2026 * Excludes bank borrowings, convertible loan notes and lease liabilities highlighted separately £’million H1 2026 H1 2025 Intangible assets 16.8 19.8 Property, plant & equipment 89.5 103.4 Right of use assets 36.8 39.4 Total current assets 95.1 65.6 Current liabilities* (34.2) (33.2) Bank borrowings due within 1 year 0.0 0.0 Convertible loan notes due within 1 year 0.0 (18.2) Lease liabilities due within 1 year (5.5) (4.5) Total non-current liabilities* (1.8) (2.1) Bank borrowings due after 1 year 0.0 (22.3) Convertible loan notes due after 1 year (11.4) 0.0 Lease liabilities due after 1 year (37.1) (41.8) Net Assets 148.3 106.1
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IQE plc 18IQE plc | H1 2026 Results Presentation £15.7m £5.2m (£4.0m) (£1.9m) (£2.3m) £15.0m £65.8m (£1.2m) £1.0m (£26.1m) (£17.8m) (£5.4m) (£2.2m) (£0.1m) £41.6m Opening cash Cash inflow from operations before working capital Working capital Purchase of PPE & intangibles/ Proceeds of PPE sale Repayment of lease liabilities Proceeds from issuance of 2026 CLN Proceeds from issuance of ordinary share capital (Fundraise) Costs associated with Fundraise Net proceeds from issuance of ordinary share capital (Other) Repayment of bank borrowings principal Repayment of 2025 CLN principal 2025 CLN interest Other interest & tax Other Closing cash - £10.0m £20.0m £30.0m £40.0m £50.0m £60.0m £70.0m £80.0m £90.0m £100.0m Cashflow bridge Gross Fundraise proceeds of £80.8m (net £79.6m) (£7.6m)
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IQE plc 19IQE plc | H1 2026 Results Presentation Adjusted EBITDA bridge £6.0m (£9.8m) (£2.2m) (£2.2m) (£4.4m) (£0.3m) (£12.9m) Adjusted EBITDA Depreciation & amortisation Restructuring Share based payments Finance costs and other Taxation Reported after tax loss (£14.0m) (£12.0m) (£10.0m) (£8.0m) (£6.0m) (£4.0m) (£2.0m) - £2.0m £4.0m £6.0m £8.0m