Siltronic Ag · XETR:WAF

Siltronic — Siltronic Ag Ord — Q3 2023 Earnings Presentation

20 slides from Siltronic's earnings presentation, Oct 26, 2023

  1. Slide 1: Siltronic AG Q3 2023 Conference Call Presentation

    Siltronic AG Q3 2023 Conference Call Presentation In line with expectations October 26, 2023 © Siltronic AG

  2. Slide 2: Development in Q3 in line with expectations

    Development in Q3 in line with expectations We are fully 2023 trough on track to reach reached in Q3 due FY guidance to weak demand Continued high Stable pricing investments to be environment ready for market turnaround Siltronic AG – Q3 2023 Conference Call October 26, 2023 2

  3. Slide 3: Q3 2023 still impacted by industry weakness, but on a solid level

    Q3 2023 still impacted by industry weakness, but on a solid level 349 Sales in EUR mn -215 Net Cash Flow in EUR mn Q2 2023: 404 Q2 2023: -310 28.4 EBITDA Margin in % 318 Capex in EUR mn Q2 2023: 29.4 Q2 2023: 366 Stable Pricing environment Nov 30 Capital Markets Day London Siltronic AG – Q3 2023 Con

  4. Slide 4: Financials Q3 2023

    Financials Q3 2023 Sound and expected performance in a still challenging environment © Siltronic AG

  5. Slide 5: Q3 in line with expectations, pricing sentiment stable

    Q3 in line with expectations, pricing sentiment stable Profit & Loss, in EUR million Comments Q1-Q3 Sales: -14% qoq Q3 2023 Q2 2023 2023  Lower wafer area sold Sales 349.1 403.7 1,157.2  Stable prices and FX Gross profit 75.7 101.1 293.0 EBITDA: -16% qoq, solid margin Gross margin, in % 21.7 25.0

  6. Slide 6: Some insights into our FX effects

    Some insights into our FX effects FX Exposure 2023, in % FX Impacts USD Sensitivity, based on 2023 exposure (EUR/USD 1.10) Change EUR/USD ± 1 USD-ct  EUR 10 mn in Sales  EUR 7 mn in EBITDA, unhedged (including highly correlated SGD-effect) 60% USD Hedging strategy 75%  Operational hedging  Strat

  7. Slide 7: Strong balance sheet – expected shift between cash & securities and fixed assets

    Strong balance sheet – expected shift between cash & securities and fixed assets Balance Sheet Composition Comments Sep 30, 2023 Dec 31, 2022 Fixed assets: + EUR 795 mn vs. Dec 31, 22  Increase to EUR 3.2 bn due to high capex Assets, in EUR mn 4,326 4,051 Cash & Securities: - EUR 543 mn vs. Dec 31,

  8. Slide 8: Major Capex in 2023 (mostly for FabNext) will fuel future growth

    Major Capex in 2023 (mostly for FabNext) will fuel future growth Investment, in EUR mn Comments ~1,300 Capex 1,074  Capex 2023 for FabNext, extension of crystal pulling hall in Freiberg (inaugurated in September) and capability enhancement  Capex 2024 will be reduced by more than half Conservative

  9. Slide 9: High Capex covered by strong financing base

    High Capex covered by strong financing base Net Financial Debt, in EUR mn Comments Net Four financing instruments in place financial assets Dec 31, 2022 374  Fully drawn  ESG linked promissory note loan Operating 324  Singapore Dollar bilateral loan Cash flow 374  European Investment Bank loan P

  10. Slide 10: Outlook 2023 and beyond

    Outlook 2023 and beyond We are consistently preparing for the next profitable growth phase © Siltronic AG

  11. Slide 11: Market environment still challenging - nevertheless stable pricing and solid profitability

    Market environment still challenging - nevertheless stable pricing and solid profitability Market weakness due to excess Environment of inventory will price stability trail into 2024 High LTA share Solid profitability stabilizes business Siltronic AG – Q3 2023 Conference Call October 26, 2023 11

  12. Slide 12: End markets are expected to stagnate in 2023 (before inventory effects)

    End markets are expected to stagnate in 2023 (before inventory effects) Consumption of wafers Growth in demand for wafer area by end use 2022, in % 2023 vs. 2022, in % 22% Smartphones 22 -4 PCs 17 -17 Server 11 10 Industrial 16 2 20% Automotive 14 18 Others1 20 -1 Total: -1 Source: Siltronic estimat

  13. Slide 13: Wafer demand in 2023 will be down around 15% due to inventory reductions

    Wafer demand in 2023 will be down around 15% due to inventory reductions; soft demand trailing into 2024 Composition of growthder Zusammensetzung drivers for wafer marketfür Wachstumstreiber 2023 S vs. vs. 2022, TAM,in % -1 % Inventory reduction at ~ -15% Total end markets customers and OEMs 2023E S

  14. Slide 14: The crystal ball has not cleared yet!

    The crystal ball has not cleared yet! Inventory status: Memory peaked but still elevated, DRAM and NAND prices stabilizing Logic close to normal levels Power increasing, Auto forecast positive - has to be watched Economic and geopolitical uncertainties persist: Consumer sentiment in China Persistant

  15. Slide 15: FabNext first wafers to be produced soon - Freiberg pulling hall inaugurated in September

    FabNext first wafers to be produced soon - Freiberg pulling hall inaugurated in September First wafers to be produced soon Extension of crystal pulling hall Focus on qualifying customers inaugurated Several hundred million euros invested High share of LTA, 80% during ramp phase Product mix improveme

  16. Slide 16: Outlook 2023 confirmed and substantiated on the upper range of the bandwidths

    Outlook 2023 confirmed and substantiated on the upper range of the bandwidths FY 2023 Sales Capex 15%  17% around EUR 1.3 bn below 2022 Net Cash Flow EBITDA Margin significantly 28%  30% below 2022 Depreciation Tax Rate around EUR 200 mn around 15% Based on FX assumption EUR/USD at 1.10 Siltronic

  17. Slide 17: Next highlight: Capital Markets Day in London on November 30, 2023

    Next highlight: Capital Markets Day in London on November 30, 2023 Venue: Andaz Hotel, 40 Liverpool Street, London Time: Start 9 am until around 3 pm CMT Main Topics:  Strategy update and mid-term outlook  Industry and technology deep-dives Presenters:  Dr. Michael Heckmeier, CEO  Claudia Schmit

  18. Slide 18: Contact and Additional Information

    Contact and Additional Information Issuer and Contact Additional Information Siltronic AG ISIN: DE000WAF3001 Einsteinstraße 172 WKN: WAF300 D-81677 München Deutsche Börse: WAF Listing: Frankfurt Stock Exchange Investor Relations: Prime Standard Verena Stütze E-mail: investor.relations@siltronic.com

  19. Slide 19: Disclaimer

    Disclaimer The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations, future financial performance and other forward-looking statements

  20. Slide 20: Siltronic AG, Einsteinstrasse, Munich

    SILTRONIC AG | Einsteinstrasse 81677 Munich 172 Germany © Siltronic AG

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