Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q3 2017 Earnings Presentation
19 slides from Daqo New Energy's earnings presentation, Nov 14, 2017
Slide 1: Unaudited Q3 2017 Financial Results Presentation
Daqo New Energy Corp. Unaudited Q3 2017 Financial Results Presentation November 14, 2017
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 Highlights and Summary Financial Results and Update Q&A PRIVATE & CONFIDENTIAL P. 3
Slide 4: Management commentary
Management commentary "We are pleased to report strong financial and operating results for the third quarter of 2017. I would like to thank our entire team for their great work and contribution to the solid profitability and earnings for the third quarter. Our excellent third quarter results demonst
Slide 5: Phase 3B Project
Phase 3B Project – adding annual capacity to 30K MT by year end 2019 Polysilicon capacity expansion in Daqo Xinjiang (cumulative capacity) Phase 3B 25,000 ~ 30,000 MT Phase 3A Phase 2A Phase 2B Phase 2A enhancement 18,000 MT 12,150 MT 5,000 MT 6,150 MT 2013 2014 2H 2015 1Q 2017 2019E Expect to inc
Slide 6: Business update and Q3 2017 highlights
Business update and Q3 2017 highlights Polysilicon Cost Structure (1) -- total production cost (including depreciation) of $8.95/kg in Q3 2017, compared to $8.53/kg in Q2 2017 -- cash cost (excluding depreciation) of $7.16/kg in Q3 2017, compared to $6.77/kg in Q2 2017 Polysilicon production vol
Slide 7: Daqo’s quarterly polysilicon Average Selling Prices
Daqo’s quarterly polysilicon Average Selling Prices Quarterly Polysilicon ASPs($/kg) $21.63 $22.04 $21.50 $20.47 $18.67 $17.98 $18.09 $17.24 $16.71 $16.66 $15.95 $16.19 $15.64 $14.98 $14.96 $13.86 $13.72 $13.58 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 2017 PRIVATE &
Slide 8: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q3 2017 key facts Q4 2017 Outlook Quarterly production volume of 4,940 MT Quarterly production volume of 4,800 – 5,000MT External sales volume of 4,500 MT(1) Expected external sales volume in Q4 2017: Average total production cost : $8.95/kg (2) 4,300
Slide 9: Polysilicon manufacturing overview
Polysilicon manufacturing overview Production Volume (MT) 4,927 4,993 4,940 3,547 3,570 3,636 3,405 2,689 2,456 1,748 1,791 1,801 1,734 1,445 1,517 1,504 1,311 962 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 2017 Cash cost and Depreciation ($/kg)* Cash cost Depreciation
Slide 10: Chongqing wafer facilities update
Chongqing wafer facilities update Q3 2017 key facts Q4 2017 sales volume outlook 26.4 million pieces sold to customers Q4 2017 wafer sales volume: 25.0 ~25.5 million pieces PRIVATE & CONFIDENTIAL P. 10
Slide 11: External sales volume in Q3 2017 and outlook for Q4
External sales volume in Q3 2017 and outlook for Q4 2017 External Sales Q4 2017E Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Volume guidance Polysilicon 4,300~ 2,838 2,209 4,223 4,497 4,500 (MT) 4,500* Wafer 14.0 21.3 22.4 27.0 26.4 25.0~25.5 (million pieces) *The Company successfully conducted annual m
Slide 12: Agenda
Agenda Business Highlights and Summary Financial Results and Update Q&A PRIVATE & CONFIDENTIAL P. 12
Slide 13: Q3 2017 financial highlights
Q3 2017 financial highlights Revenue of $89.4 million in Q3 2017, compared to $76.0 million in Q2 2017 Gross profit of $36.4 million in Q3 2017, increased from $24.2 million in Q2 2017 Gross margin of 40.8% in Q3 2017, increased from 31.9% in Q2 2017 Non-GAAP gross margin(3) of 41.3% in Q3 2
Slide 14: P&L Summary (Q3 2017 vs. Q2 2017)
P&L Summary (Q3 2017 vs. Q2 2017) US$ in millions (except on otherwise indicated) Q3 2017 Q2 2017 Change Analysis Polysilicon: Ext. sales volume ↑ , ASP↑ Revenues 89.4 76.0 13.4 Wafer: Sales volume↓, ASP↑ Polysilicon: Ext. sales volume ↑ ,Cost↑ Cost of revenues (53.0) (51.8) (1.2) Wafer: Sales volum
Slide 15: Balance sheet summary
Balance sheet summary Change (Q3 2017 vs. US$ in millions 9/30/2017 6/30/2017 Q2 2017) 9/30/2016 Cash, cash equivalent and 61.6 49.8 11.8 29.2 restricted Cash Accounts receivable 4.6 3.8 0.8 4.6 Note receivables 25.3 10.5 14.8 17.0 Inventories 17.3 16.0 1.3 14.9 Prepaid land use rights 25.5 25.1 0.4
Slide 16: Cash flow summary
Cash flow summary 9 months ended 9 months ended US$ in millions Sep. 30, 2017 Sep. 30, 2016 Net cash provided by operating activities 98.4 70.9 Net cash (used in) investing activities (45.0) (51.2) Net cash (used in) provided by financing activities (29.6) (12.3) Effect of exchange rate changes 1.1
Slide 17: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q3 2017 Q2 2017 Q3 2016 Net income 24.4 12.3 11.3 Income tax expenses 4.2 2.8 2.2 Interest expense 4.3 5.3 3.1 Interest income (0.1) (0.1) (0.1) Depreciation 9.6 9.6 8.5 EBITDA (1) 42.3 29.8 25.0 EBITDA margin (1) 47.4% 39.2% 46.0% Gross profit 36.4 24.2 20.1
Slide 18: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures To supplement Daqo’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directly comp
Slide 19: Agenda
Agenda Business Highlights and Summary Financial Results and Update Q&A PRIVATE & CONFIDENTIAL P. 19