Slide 1: Siltronic AG Q3 2020 Conference Call Presentation
Siltronic AG Q3 2020 Conference Call Presentation October 29, 2020 © Siltronic AG
Slide 2: Highlights Q3 2020: Financials
Highlights Q3 2020: Financials Sales − EUR 299.2m (Q2 2020: EUR 323.1m) EBITDA − EUR 80.1m (Q2 2020: EUR 100.4m) − EBITDA margin: 26.8% (Q2 2020: 31.1%) EBIT − EUR 43.6m (Q2 2020: EUR 66.9m) − EBIT margin: 14.6% (Q2 2020: 20.7%) Capex − EUR 35.1m (Q2 2020: EUR 48.3m) Net cash flow − EUR 28.6m (Q2 20
Slide 3: Silicon wafer area in Q3 slightly up versus Q2
Silicon wafer area in Q3 slightly up versus Q2 Logic Industry / Auto Foundry business: strong Auto: uneven recovering with China up, US and Europe flattish and RoW down Servers: strong (Home Office, streaming) Industry applications: mixed Inventories: ok Hybrid and electrical cars: stron
Slide 4: Financials Q3 2020
FINANCIALS Q3 2020 © Siltronic AG
Slide 5: Q3 sales down due to FX and product mix
Q3 sales down due to FX and product mix Sales, in EUR m Ø FX rates Q3/19 Q4 Q1/20 Q2 Q3 EUR / USD 1.11 1.11 1.10 1.10 1.17 EUR / JPY 119 120 120 118 124 Comments Wafer area up q-o-q and y-o-y Flattish price trend q-o-q 323.1 299.8 304.3 300.1 299.2 Strong headwind from: EUR strength (negativ
Slide 6: Positive cost trend per wafer area despite higher depreciation
Positive cost trend per wafer area despite higher depreciation Cost of sales, in EUR m Gross profit, in EUR m / Gross margin, in % 34.6 31.8 29.8 30.7 26.1 196.1 207.4 210.8 224.0 221.0 103.7 96.9 89.3 99.1 78.2 Q3 2019 Q4 Q1 2020 Q2 Q3 Q3 2019 Q4 Q1 2020 Q2 Q3 Selling, R&D and admin expenses, in EU
Slide 7: High US-Dollar and Japanese Yen exposure
High US-Dollar and Japanese Yen exposure FX exposure, in % FX sensitivity ~ 10% Sales EBITDA unhedged ~ 25% 1 USD-cent change ~ EUR 6 million ~ EUR 4.5 million ~ 65% ~ 65% 1 JPY change ~ EUR 2.5 million ~ EUR 2 million Sales Costs USD SGD JPY EUR Other currency effects (mostly hedging), Comment in E
Slide 8: Strong Euro and change in product mix negative for earnings
Strong Euro and change in product mix negative for earnings EBITDA, in EUR m / EBITDA margin, in % Depreciation, in EUR m 30.5 29.6 31.1 28.1 26.8 91.5 90.0 84.2 100.4 80.1 -27.9 -33.3 -30.9 -33.5 -36.5 Q3 2019 Q4 Q1 2020 Q2 Q3 Q3 2019 Q4 Q1 2020 Q2 Q3 EBIT, in EUR m / EBIT margin, in % Comments S
Slide 9: Net profit of EUR 39 million
Net profit of EUR 39 million Net profit, in EUR m EPS, in EUR 59.5 60.8 1.65 1.80 45.4 46.0 39.1 1.21 1.32 1.08 Q3 2019 Q4 Q1 2020 Q2 Q3 Q3 2019 Q4 Q1 2020 Q2 Q3 Dividend payment, in EUR m Comments Net profit of EUR 39m in Q3 Q3 tax rate of 9% Q1-Q3 tax rate down from 12% to 8% y-o-y 150 75 90
Slide 10: Working capital significantly up due to higher trade receivables and lower trade liabilities
Working capital significantly up due to higher trade receivables and lower trade liabilities Working capital, in EUR m Inventories and contract assets, in EUR m Working capital ratio to quarterly sales, in % Inventories Contract assets 73 80 69 60 58 55 60 40 19.2 14.6 14.6 14.2 15.2 207.0 188.6 218
Slide 11: Equity decreased due to dividend payment and higher interest-related pension obligations
Equity decreased due to dividend payment and higher interest- related pension obligations Equity, in EUR m Provisions for pensions, Net financial assets, Equity ratio, in % in EUR m in EUR m 52.8 47.8 45.4 43.7 42.4 Interest rates IFRS 2.99% 2.98% 2.88% 2.46% 2.41% USA Germany 0.97% 1,24% 1.92% 1.23
Slide 12: Pension reserves up due to lowest IFRS interest rate in Germany
Pension reserves up due to lowest IFRS interest rate in Germany in Siltronic history DBO and pension reserves, in EUR m Comment DBO of EUR 1,256m ./. assets of EUR 650m = EUR 606m 1,256 ~870 650 Pension reserves @3% = DBO of EUR ~870m ./. assets EUR 650m = USA mostly EUR~220m funded 146 2.41% 13
Slide 13: Capex 2020 significantly down vs. 2019
Capex 2020 significantly down vs. 2019 Investment, in EUR m Comment Q1 included some roll-over from 2019 projects Planned capability and capacity expansion projects should be mostly completed by year- end Epi expansion in H2 to accommodate demand and market growth 96.4 88.6 46.0 48.3 35.1 Q3 2
Slide 14: Net cash flow clearly positive
Net cash flow clearly positive Operating cash flow (OCF), in EUR m Customer prepayments net (PP), in EUR m 100.7 74.4 85.6 58.6 60.9 3.6 -15.5 -21.6 -16.9 -10.5 Q3 2019 Q4 Q1 2020 Q2 Q3 Q3 2019 Q4 Q1 2020 Q2 Q3 CF Capex, in EUR m Net cash flow (NCF), in EUR m 8.9 40.9 26.7 28.6 -66.3 -48.8 -42.8 -8.
Slide 15: Outlook
OUTLOOK © Siltronic AG
Slide 16: Siltronic Outlook 2020 (as of July 21, 2020) - unchanged
Siltronic Outlook 2020 (as of July 21, 2020) - unchanged Sales − mid-single digit %-range below 2019 with a slight sequential decrease in H2 vs. H1 EBITDA margin − mid-single digit percentage points below 2019 Depreciation − around EUR 140m EBIT − significantly below 2019 due to higher depreciation
Slide 17: Positive development of wafer volume in Q4 2020
Positive development of wafer volume in Q4 2020 − Strong foundry and logic business 300 mm − Uncertainty due to US-China trade tensions might lead to elevated inventories − Digestion of server components − High exposure to automotive and industry where end markets are 200 mm mixed − Assume some inve
Slide 18: What to expect in the short-term and medium-term
What to expect in the short-term and medium-term Short-term development Foundry and logic business to stay strong In memory, server-related inventories seem to be in a digestion phase Smartphones should see a recovery driven by 5G Server market seems to be softening Demand from automotive
Slide 19: Appendix
APPENDIX © Siltronic AG
Slide 20: Contact and Additional Information
Contact and Additional Information Issuer and Contact Additional Information Siltronic AG ISIN: DE000WAF3001 Hanns-Seidel-Platz 4 WKN: WAF300 D-81737 München Deutsche Börse: WAF Listing: Frankfurt Stock Exchange Investor Relations: Prime Standard Petra Mueller email: petra.mueller@siltronic.com Tel.
Slide 21: 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
Slide 22: Siltronic AG
SILTRONIC AG | Hanns-Seidel-Platz 81737 Munich 4 Germany © Siltronic AG