Slide 1: Siltronic AG Full Year 2018 Results
Siltronic AG Full Year 2018 Results March 5, 2019 © Siltronic AG
Slide 2: Highlights 2018: Financials
Highlights 2018: Financials Sales EUR 1,456.7m (2017: EUR 1,177.3m) EBITDA EUR 589.3m (2017: EUR 353.1m) EBITDA margin: 40.5% (2017: 30.0%) EBIT EUR 497.7m (2017: EUR 235.7m) EBIT margin: 34.2% (2017: 20.0%) CapEx EUR 256.9m (2017: EUR 123.2m) Net cash flow EUR 240.4m (2017: EUR 124.8m
Slide 3: Market Update
MARKET UPDATE © Siltronic AG 2018
Slide 4: Market developments
Market developments End Markets 2019 Overall volume development signals a mixed picture, but mostly muted in main end markets. Mobile Phones: softening, PCs: flattish, Servers: up, Cars: flattish, EV/HVs: up Semiconductors Semi units dipped further in December 2018, but were +3.7% YoY. Silicon
Slide 5: Silicon content grows further in 2019, however impacted by declining or flattish unit numbers
Silicon content grows further in 2019, however impacted by declining or flattish unit numbers in some end markets Important end Units Content Comments markets Smartphones / muted content growth due to lower number mobile phones of high-end smartphones sold PC unit shipments flattish in 2018 and PCs
Slide 6: 6% YoY less smartphones sold in Q4; further decline in 2019 possible
6% YoY less smartphones sold in Q4 Further decline in 2019 possible Smartphone sales, in million units Expectations for 2019 IDC (December 2018): small growth -6% 395 370 IHS (January 2019): +1% 355 334 342 Other Macquarie (January 3, 2019): -5% TSMC (January 17, 2019): negative, OPPO especi
Slide 7: PC business also declining in Q4, mainly due to tight supply
PC business also declining in Q4, mainly due to tight supply Number of PCs/ laptops /notebooks, in million units (IDC) In Q4 Intel favored the server business -2,6 whereby around 2 million CPUs for the = -3,7% 70,7 68,1 PC business were missing 68,0 67,4 62,3 60,3 60,6 60,7 Demand basically inta
Slide 8: Servers grow in units and in content; machine learning is the most important driver
Servers grow in units and in content; machine learning is the most important driver Server shipments Servers, in m units in million units AI-compatible servers, as % of all servers sold 2017 2021 2025 +6% +13% 15,0 14,1 12,5 11,0 10,0 DRAM per server (TB) NAND per server (TB) 25 20 15 additional 10
Slide 9: No momentum in the automotive market in 2019
No momentum in the automotive market in 2019 Number of new cars in regional key markets, per quarter and Comments by OEMs year, in million units GM (January, 11) Europe Brazil expects flat development Russia India +1% in USA and China USA China 68.1 68.8 Japan VW (January, 11) 15.5 expects sligh
Slide 10: Financials Full Year 2018
FINANCIALS FULL YEAR 2018 © Siltronic AG 2018
Slide 11: Revenues 2018 increased on a sequential basis
Revenues 2018 increased on a sequential basis Sales, in EUR million Comment 379.8 388.1 361.3 Positive 328.1 327.4 ASP increase y-o-y and q-o-q Negative Headwind from USD y-o-y (but not as much as expected at the beginning of the year) Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Siltronic AG – F
Slide 12: Q4 EBITDA margin at 41%
Q4 EBITDA margin at 41% EBITDA margin in %; EBITDA in EUR million Comment Positive 42.2 41.4 40.4 Higher ASP y-o-y and q-o-q 36.8 37.4 Slightly lower cost per wafer area y-o-y and q-o-q Negative 160.2 160.8 146.0 Headwind from USD y-o-y 120.9 122.3 (but not as much as expected at the begin
Slide 13: Net profit more than doubled compared to 2017
Net profit more than doubled compared to 2017 Result and income tax, in EUR million Comment Net profit in 2018 more than -87.8 doubled vs. 2017 Higher ASPs and slightly lower cost of sales per wafer area contributed 488.4 Tax rate of 18% in 2018 -35.0 400.6 227.2 192.2 2017 2018 Result before
Slide 14: Equity further increased due to strong profit for the period, solid equity ratio stable
Equity further increased due to strong profit for the period, solid equity ratio stable at about ~50% Balance sheet, in EUR million Dec 31, Dec 31, Comments Equity and Dec 31, Dec 31, Comments Assets 2018 2017 Dec 31, 2018 liabilities 2018 2017 Dec 31, 2018 Non-current 762.8 546.6 Equity 915.7 637.9
Slide 15: Pension provision about stable y-o-y
Pension provision about stable y-o-y Pension provision, in EUR million Comment Changes in interest rates influence evaluation 367 of pension provision 362 Change in interest rates directly reflected in equity (OCI) One-time payment of EUR 30m into a CTA in 2018 Dec. 31, 2017 Dec. 31, 2018 inte
Slide 16: Pension liability impacted by IFRS interest rates used and new mortality tables
Pension liability impacted by IFRS interest rates used and new mortality tables; funded CTA for other pensions in Germany DBO and pension reserve, in EUR million Comment DBO of EUR 973m – assets of EUR 611m = EUR 362m 973 819 Pension reserve @3% = EUR 208m 611 USA, 122 4.08% 122 4.08% 89 IFRS
Slide 17: Net financial assets doubled in 2018
Net financial assets doubled in 2018 Net financial assets, in EUR million Comment 716 Prepayments of EUR 176m 691 (net) received in 2018 603 Dividend proposal of EUR 5.00 per share (depending on 491 approval of Annual General Meeting in May 2019) Dividend payable in May 342 2019 Siltronic AG –
Slide 18: Capex 2018 of EUR 257 million slightly below forecast
Capex 2018 of EUR 257 million slightly below forecast Comments Investment, in EUR million ~350e Capex 2018: EUR ~140m for 70k wafers/month over 2 years 257 Prepayments for 2020 ~20 new crystal pulling hall in Singapore capacity increase Capex crystal pulling Prepayments for capacity addition
Slide 19: Strong net cash flow despite investments in the future
Strong net cash flow despite investments in the future Capex and NCF, in EUR million Comments Net cash flow of EUR -32m in Q4 2018 due to high capex level Capex increase in Q4 related to: 112.4 115.5 capacity expansion in 2019 93.0 new crystal pulling hall in 61.4 67.1 62.8 Singapore 45.2 33
Slide 20: Outlook
OUTLOOK © Siltronic AG 2018
Slide 21: Siltronic Outlook 2019 (as of February 20, 2019)
Siltronic Outlook 2019 (as of February 20, 2019) EBITDA margin slightly below 2018 EBIT a good 10% below 2018 Net cash flow clearly positive, approx. EUR 100m below 2018 due to increased investment: higher in 2020 Sales in the region of 2018 Cost position negative effect due to tariff incr
Slide 22: Appendix
APPENDIX © Siltronic AG 2018
Slide 23: Increasing demand for electronic devices and new applications drive semiconductor growth
Increasing demand for electronic devices and new applications drive semiconductor growth, which in turn fuels silicon demand. Electronics Value Chain 2018 Electronics USD 1,622 bn Semiconductors USD 456 bn Semiconductor silicon wafers USD 11.4 bn Silicon for electronic applications USD 1.2 bn Source
Slide 24: Siltronic is a strong wafer supplier with leading-edge technology
Siltronic is a strong wafer supplier with leading-edge technology Top 5 wafer producers serve more than 90% of market across all diameters 17% 11% 15% 27% 30% SK Siltron Siltronic Shin Etsu Sumco GlobalWafers Sources: reported company revenues Q1-Q3 2018, converted to USD million Siltronic AG – Full
Slide 25: Siltronic is focused on growing 300 mm and attractive 200 mm business
Siltronic is focused on growing 300 mm and attractive 200 mm business. Development of total wafer demand per diameter, in mn 300 mm equivalents per month Strong 7 demand 300 mm 200 mm SD (pol/epi) & 6 growth 5 4 3 Stable & attractive 2 1 Mid-term decline 0 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 26: Customer base well diversified across all major semiconductor silicon wafer consumers
Customer base well diversified across all major semiconductor silicon wafer consumers. Siltronic is a supplier to all top 20 Silicon wafer consumers Siltronic well positioned at all Top 10 customers represent ~75% major Silicon consumers of 2018 revenues Source: Company Information, Siltronic Siltro
Slide 27: International manufacturing network supports market leadership and business focus
International manufacturing network supports market leadership and business focus Freiberg CP* 300 mm Germany Portland 200 mm United States Burghausen CP* 300 mm SD* ► Central R&D hub in Burghausen ► High volume facilities for 300 mm in Germany and Singapore ► Among world’s newest & largest SSW CP*
Slide 28: Continuous improvement of key ingot and wafer properties to meet customers' requirements
Continuous improvement of key ingot and wafer properties to meet customers‘ requirements Ingot Wafer doping level mechanical stability edge flatness flatness purity uniformity resistivity surface cleanliness oxygen content shape homogeneity Siltronic AG – Full Year 2018 Results March 5, 2019 28 of 3
Slide 29: Silicon area demand continues to grow
Silicon area demand continues to grow Silicon wafer demand, in bn in2 12.7 11.8 10.7 10.4 10.1 9.4 9.0 9.0 9.1 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Data based on IHS Markit, Technology Group, Semiconductor Silicon Demand Forecast Tool, Q1 2019 (Estimate 2019). Results are not an endo
Slide 30: 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 31: 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 32: Siltronic AG
SILTRONIC AG | Hanns-Seidel-Platz 81737 Munich 4 Germany © Siltronic AG