Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q1 2015 Earnings Presentation
18 slides from Daqo New Energy's earnings presentation, May 8, 2015
Slide 1: Q1 2015 Financial Results Presentation
Daqo New Energy Corp. Q1 2015 Financial Results Presentation May y 8,, 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “antici
Slide 3: Agenda
Agenda Business us ess Highlights g g ts and a d Summary Su ay Financial Results and Update Q&A PRIVATE & CONFIDENTIAL P. 3
Slide 4: Business update and Q1 2015 highlights
Business update and Q1 2015 highlights Record-high R d hi h polysilicon l ili production d ti volume l off 1 801 MT in 1,801 i Q1 2015 2015, up ffrom 1 1,791 791 MT in Q4 2014 Cost Structure – total production cost (including depreciation) of $12.80/kg and cash cost $10 3/k in off $10.53/kg i Q1
Slide 5: Market update
Market update The consensus of the market believes that a year-on-year growth of 15%~20% could be expected for the global solar installation installation. That means the demand for polysilicon in 2015 could potentially increase by 40~50 thousand MT compared with 2014. In the first quarter of 201
Slide 6: Market price trend (PVinsights)
Market price trend (PVinsights) Polysilicon spot market price ($/kg) Wafer ASP ($ / piece) $0.94 $21.37 $21.61 $20.83 $20.35 $18.71 $ 8 $17.87 $0.90 $17.45 $16.78 $16.94 $0.88 $0.85 $0.85 $0.85 $0.84 $0.84 $0 82 $0.82 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2013 2014 201
Slide 7: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q1 2015 key facts Outlook 1,801 MT production Expected shipment in Q2 2015: 1,320 MT 1,532 MT shipment to customers Xinjiang Phase 2b project update: Solar Grade I: 100% in Q1 2015 ‒ Start pilot production in June and fully ramp up during Q3 Q1 2015
Slide 8: Polysilicon manufacturing overview
Polysilicon manufacturing overview Production Volume (MT) Production cost, SG&A, interest ($/kg)** 1,801 1,791 1,748 $23.47 1 517 1,517 1 504 1,504 2.88 $20.76 1,445 1,311 $18.81 3.12 $18.30 4.76 $16.94 $16.47 2.83 2.55 1 088 1,088 2 45 2.45 $15.23 $15.25 $14.76 $14 76 5.43 2.34 962 2.18 2.02 4.16 3
Slide 9: Consistent first class quality -- 100% Solar Grade 1
Consistent first class quality -- 100% Solar Grade 1 Daqo New Energy polysilicon quarterly quality data (1) 99 3% 99.3% 99 5% 99.5% 100 0% 100.0% 100% 100% 100% 92.5% 100% 88.3% 94.7% 95.8% 95.0% 90.7% 85.9% 84.3% 85.3% 77.4% 67.5% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2
Slide 10: Wanzhou wafer facilities update
Wanzhou wafer facilities update Q1 2015 key facts Outlook 18.8 18 8 million illi pieces i shipped hi d tto customers t Q2 2015 wafer f shipment hi t expected t d tto be b 17.5 –18.0 million pieces PRIVATE & CONFIDENTIAL P. 10
Slide 11: Shipments, Sales volume, Polysilicon inventory and Q2 2015 Shipments outlook
Shipments, Sales volume, Polysilicon inventory and Q2 2015 Shipments outlook Q2 2015E Shipments Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 guidance Polysilicon (MT) 1,391 1,436 1,598 1,537 1,532 1,320 Wafer 16 8 16.8 17 6 17.6 18 5 18.5 17 8 17.8 18 8 18.8 17 5 18 0 17.5-18.0 (million pieces) Ingot & b
Slide 12: Agenda
Agenda Business Highlights and Summary Financial Results and Update p Q&A PRIVATE & CONFIDENTIAL P. 12
Slide 13: Q1 2015 financial highlights
Q1 2015 financial highlights Revenues were $41.9 million, compared to $49.5 million in Q4 2014 Polysilicon production cost of $12.80/kg in Q1 2015, compared to $13.23/kg in Q4 2014; cash cost of $10.53/kg in Q1 2015, compared to $10.88/kg in Q4 2014 Gross profit was $8.5 million, compared to $
Slide 14: P&L summary (Q1 2015 vs. Q4 2014)
P&L summary (Q1 2015 vs. Q4 2014) US$ in millions Q1 2015 Q4 2014 Change Analysis Polysilicon: Sales↓ , ASP↓ Revenues 41.9 49.5 (7.6) Wafer: Sales↓ , ASP↓ Polysilicon: Cost↓ Cost of revenues (33.4) (36.9) (3.5) Wafer: Cost↓ Gross profit (loss) 8.5 12.6 (4.1) Gross margin 20 2% 20.2% 25 4% 25.4% (5 2
Slide 15: Non-GAAP reconciliation – EBITDA and gross margin
Non-GAAP reconciliation – EBITDA and gross margin US$ in millions Q1 2015 Q4 2014 Change Net income (loss) 1.2 3.6 (2.4) Income tax expenses 0.2 - 0.2 Interest expense 3.2 4.0 (0.8) Interest income (0.05) (0.03) (0.02) Depreciation 6.9 7.1 (0.2) EBITDA (1) 11.4 14.7 (3.3) EBITDA margin (1) 27.3% 29.
Slide 16: Balance sheet summary
Balance sheet summary Change (Q1 2015 vs. Q4 US$ in millions 3/31/2015 12/31/2014 2014) 3/31/2014 Cash and restricted Cash 32.2 29.2 3.0 24.2 Accounts receivable 8.8 8.7 0.1 5.1 Notes receivable 48.4 50.2 (1.8) 34.0 I Inventories t i 94 9.4 96 9.6 (0 2) (0.2) 12 4 12.4 Prepaid land use rights 28.9 2
Slide 17: Cash flow summary
Cash flow summary 3 months ended 3 months ended US$ in millions Mar. 31, 2015 Mar. 31, 2014 Net cash provided by operating activities 1.3 15.2 Net cash used in investing activities (16.3) (11.0) Net cash provided by financing activities 22 7 22.7 (3 8) (3.8) Effect of exchange rate changes 0.005 0.5
Slide 18: Agenda
Agenda Business us ess Highlights g g ts and a d Summary Su ay Financial Results and Update Q&A PRIVATE & CONFIDENTIAL P. 18