Slide 1: Q2 2020 Conference Call Presentation
Siltronic AG Q2 2020 Conference Call Presentation July 30, 2020 © Siltronic AG
Slide 2: Corona Update
Corona Update Employee safety highest priority No additional Covid-19 cases Production running smoothly at all sites No production shutdowns Delays in some invest projects due to travel ban Time loss on start of operation of some equipment in Q1 and Q2 Confident to finish most planned
Slide 3: What did silicon demand look like in Q2?
What did silicon demand look like in Q2? Logic Industry / Auto Foundry business: strong Auto: weak, higher negative impact to follow in H2 Servers: strong (Home Office, streaming) Traditional applications: high inventories Inventories: ok Hybrid and electrical cars: flattish Memory 300 e
Slide 4: Highlights Q2 2020: Financials
Highlights Q2 2020: Financials Sales EUR 323.1m (Q1 2020: EUR 300.1m) EBITDA EUR 100.4m (Q1 2020: EUR 84.2m) EBITDA margin: 31.1% (Q1 2020: 28.1%) EBIT EUR 66.9m (Q1 2020: EUR 53.3m) EBIT margin: 20.7% (Q1 2020: 17.8%) Capex EUR 48.3m (Q1 2020: EUR 46.0m) Net cash flow EUR 26.7m (Q1 20
Slide 5: Financials Q2 2020
FINANCIALS Q2 2020 © Siltronic AG
Slide 6: Q2 sales improved q-o-q
Q2 sales improved q-o-q Sales, in EUR m Ø FX rates Q2/19 Q3 Q4 Q1/20 Q2/20 EUR / 1.12 1.11 1.11 1.10 1.10 USD EUR / 124 119 120 120 118 JPY Comments Q2 sales up q-o-q: higher wafer area sold flattish price trend 311.8 323.1 299.8 304.3 300.1 Tailwind from USD y-o-y; no change q-o-q Q2 2019 Q
Slide 7: Productivity improvements lead to lower costs per wafer area
Productivity improvements lead to lower costs per wafer area Cost of sales, in EUR m Gross profit, in EUR m / Gross margin, in % 36.1 34.6 31.8 29.8 30.7 199.4 196.1 207.4 210.8 224.0 112.4 103.7 96.9 89.3 99.1 Q2 2019 Q3 Q4 Q1 2020 Q2 Q2 2019 Q3 Q4 Q1 2020 Q2 Selling, R&D and admin expenses, in EUR
Slide 8: 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 9: Higher production volumes positive for earnings
Higher production volumes positive for earnings EBITDA, in EUR m / EBITDA margin, in % Depreciation, in EUR m 32.1 30.5 29.6 31.1 28.1 100.0 91.5 90.0 84.2 100.4 -25.4 -27.9 -33.3 -31.0 -33.5 Q2 2019 Q3 Q4 Q1 2020 Q2 Q2 2019 Q3 Q4 Q1 2020 Q2 EBIT, in EUR m / EBIT margin, in % Comments Higher produ
Slide 10: Net profit of EUR 61 million
Net profit of EUR 61 million Net profit, in EUR m EPS, in EUR 68.5 59.5 60.8 1.98 1.65 1.80 45.4 46.0 1.21 1.32 Q2 2019 Q3 Q4 Q1 2020 Q2 Q2 2019 Q3 Q4 Q1 2020 Q2 Dividend payment, in EUR m Comments Net profit of EUR 61 million in Q2 Low tax rate of 8% in H1 deferred tax income and some tax rel
Slide 11: Working capital slightly up
Working capital slightly up Working capital, in EUR m Inventories and contract assets, in EUR m Working capital ratio to quarterly sales, in % Inventories Contract assets 69 60 58 55 58 60 40 21.4 19.2 14.6 14.5 14.2 182.4 207.0 179.5 188.6 20 168.3 158.8 164.6 152.8 154.6 160.9 0 Jun 19 Sep 19 Dec
Slide 12: 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 43,4 42,4 Interest rates IFRS 3.37% 2.99% 2.98% 2.88% 2.46% USA Germany 1.29% 0,97% 1.24% 1.92
Slide 13: Pension reserves up due to lower IFRS interest rates in Germany
Pension reserves up due to lower IFRS interest rates in Germany DBO and pension reserves, in EUR m Comment DBO of EUR 1,195 million ./. assets of EUR 643 million = EUR 552 million 1,195 ~875 643 Pension reserves @3% = DBO of EUR ~875 million ./. assets EUR 643 million USA mostly = EUR ~232 milli
Slide 14: Capex 2020 significantly down vs. 2019
Capex 2020 significantly down vs. 2019 Investment, in EUR m Comment Capex 2020 Significantly down to around EUR 200m Capacity expansion projects completed in Q1 Crystal pulling hall in Singapore to be finished in Q2 363 Epi expansion in H2 to accommodate demand and market growth 257 ~200
Slide 15: Net cash flow in Q2 influenced by dividend payment
Net cash flow in Q2 influenced by dividend payment Operating cash flow (OCF), in EUR m Customer prepayments net (PP), in EUR m 100.7 79.1 74.4 85.6 58.6 3.6 -16.2 -15.5 -21.6 -16.9 Q2 2019 Q3 Q4 Q1 2020 Q2 Q2 2019 Q3 Q4 Q1 2020 Q2 CF Capex, in EUR m Net cash flow (NCF), in EUR m 0.4 8.9 40.9 26.7 -6
Slide 16: Outlook
OUTLOOK © Siltronic AG
Slide 17: Negative corona effects on silicon demand in H2 2020
Negative corona effects on silicon demand in H2 2020 Development of wafer volume in Q3 300 epi strong - good logic and foundry business 300 pol stable - still elevated raw wafer inventories 200 mm decline - high exposure to automotive industry SD decline - after strong Q2 back to Q1 level Wh
Slide 18: Siltronic Outlook 2020 (as of July 21, 2020)
Siltronic Outlook 2020 (as of July 21, 2020) Sales mid-single digit %-range below 2019 with a slight sequential decrease in H2 vs. H1; in case of continuing USD weakness, decline could be somewhat higher EBITDA margin mid-single digit percentage points below 2019 Depreciation around EUR 140m E
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