Siltronic Ag · XETR:WAF

Siltronic — Siltronic Ag Ord — Q2 2024 Earnings Presentation

16 slides from Siltronic's earnings presentation, Jul 25, 2024

  1. Slide 1: Q2 2024 Managing Ongoing Soft Demand with Resilience

    Q2 2024 MANAGING ONGOING SOFT DEMAND WITH RESILIENCE Dr. Michael Heckmeier & Claudia Schmitt July 25, 2024 © Siltronic AG

  2. Slide 2: Key Messages of Today's Call

    KEY MESSAGES OF TODAY'S CALL Q2 2024 as expected Wafer demand weakness ongoing AI growth will drive wafer Guidance slightly demand going forward upgraded 2 Q2 2024 Conference Call Presentation © Siltronic AG

  3. Slide 3: Managing the Soft Demand

    MANAGING THE SOFT DEMAND Production Capex Focus on productivity and efficiency Restrictive approval of investments Labor Dividend Adjusted to reduced output – Reduced to EUR 1.20 per share for 2023 e.g. qualified hiring freeze Working Capital Costs Effective management Even more intensified emphasis

  4. Slide 4: Q2 2024 Affected by Ongoing Weak Wafer Demand

    Q2 2024 AFFECTED BY ONGOING WEAK WAFER DEMAND 351.3 140.6 Sales in EUR mn Capex in EUR mn 2.3% vs. Q1 2024 Mainly for new fab in SGP 25.8 -95.0 EBITDA Margin in % Net cash flow in EUR mn Q1 2024: 26.4% Negative due to ongoing investments 0.73 Prices Earnings per share in EUR Almost stable Q2 vs. Q1

  5. Slide 5: Financials Q2 2024

    FINANCIALS Q2 2024 As expected 5 Q2 2024 Conference Call Presentation © Siltronic AG

  6. Slide 6: Q2 Figures as Expected

    Q2 FIGURES AS EXPECTED Profit & Loss, in EUR million Comments Q2 vs. Q1 2024 n Q2 2024 Q1 2024 H1 2024 Sales Sales 351.3 343.5 694,8 ○ Slight increase (+2.3%) driven by higher wafer area sold ○ FX and prices almost stable Gross profit 70.6 70.1 140.7 EBITDA (Margin) Gross Margin, in % 20.1 20.4 20.3

  7. Slide 7: Equity Ratio Unchanged at 47% – Increasing Fixed Assets, Syn Loan Partly Drawn

    EQUITY RATIO UNCHANGED AT 47% – INCREASING FIXED ASSETS, SYN LOAN PARTLY DRAWN Balance Sheet Composition Comments Jun 30, 2024 vs. Dec 31, 2023 Jun 30, 2024 Dec 31, 2023 Fixed assets EUR +242 mn Assets, in EUR mn 4,620 4,505 o Further increase to EUR 3.7 bn; declining invest level, but still clearly

  8. Slide 8: 2024 Capex Reduced to a Range Between EUR 500 and 530 Million

    2024 CAPEX REDUCED TO A RANGE BETWEEN EUR 500 AND 530 MILLION Investment, in EUR million 1,316 Capex 2024 mainly for new Fab in 1,074 SGP 500 – 530 426 Focus H1: 314 on capex management 188 intensified 2020 2021 2022 2023 2024e Chart not to scale 8 Q2 2024 Conference Call Presentation © Siltronic AG

  9. Slide 9: Successful Inauguration of Our New Fab in Singapore on June 12

    SUCCESSFUL INAUGURATION OF OUR NEW FAB IN SINGAPORE ON JUNE 12 Qualifications major focus for 2024 Depreciation starting in Q4 Profitability positive mid-term impact for Siltronic Group 9 Q2 2024 Conference Call Presentation © Siltronic AG

  10. Slide 10: Net Financial Debt Impacted by High Capex

    NET FINANCIAL DEBT IMPACTED BY HIGH CAPEX Net Financial Debt, in EUR million Net financial debt -356 Dividend Dec 31, 2023 Payment in Q2 Operating 171 cash flow Payments for -411 capex, net1 Change in net financial position Dividend EUR -284 mn payment -36 Capex Payments > invest Others -7 level, cl

  11. Slide 11: Refinancing in 2024 Under Preparation

    REFINANCING IN 2024 UNDER PREPARATION Debt financing instruments, in EUR million Syn loan Second part drawn in Syn loan Q2 (EUR 100 mn), 230 SGP Q1 (EUR 50 mn) 310 Fixed loans, drawn Variable loans, drawn Syn loan 1,200 150 Syn loan, not drawn yet SSD EIB Refinancing 200 105 under preparation SSD 1

  12. Slide 12: Outlook 2024

    OUTLOOK 2024 Guidance slightly upgraded 12 Q2 2024 Conference Call Presentation © Siltronic AG

  13. Slide 13: End Market Growth Still Negatively Overcompensated by Excess Inventory

    END MARKET GROWTH STILL NEGATIVELY OVERCOMPENSATED BY EXCESS INVENTORY Consumption of wafers by end use Growth in demand for wafer area 2023, in % 2024 vs. 2023, in % Server Strong growth with AI Smartphones 22 5 pushing net content PCs 14 3 Server 13 22 Smartphones Industrial 16 -2 Modest recovery

  14. Slide 14: How Does an AI Server Drive Wafer Demand?

    HOW DOES AN AI SERVER DRIVE WAFER DEMAND? DRAM GPU/ CPU Logic DRAM Power for Power management HBM Memory NAND Picture: Created by AI 14 Q2 2024 Conference Call Presentation © Siltronic AG

  15. Slide 15: 2024 Guidance Slightly Upgraded

    2024 GUIDANCE SLIGHTLY UPGRADED Sales EBIT High single digit percent below prior year Significant decline EBITDA Margin Capex Between 23% and 25% Between EUR 500 and 530 mn Depreciation Net cash flow Below EUR 300 mn Improved compared to previous year, but remains significantly negative 15 Q2 2024 C

  16. Slide 16: Financial Calendar and Events; Investor Relations Contacts

    Financial Calendar and Events Sep 3, 2024 Sep 4, 2024 Sep 23, 2024 Sep 25, 2024 October 24, 2024 ODDO Conference DB TMT Conference Berenberg and GS Baader Investment Q3 2024 results Frankfurt London German Corporate Conference, Munich Conference, Munich Investor Relations Contacts Verena Stütze Step

Siltronic Ag Ord — Q2 2024 Earnings Presentation on 6ix