Slide 1: Siltronic AG Q3 2019 Conference Call Presentation
Siltronic AG Q3 2019 Conference Call Presentation October 24, 2019 © Siltronic AG
Slide 2: Highlights Q3 2019: Financials
Highlights Q3 2019: Financials Sales EUR 299.8m (Q2 2019: EUR 311.8m) EBITDA EUR 91.5m (Q2 2019: EUR 100.0m) EBITDA margin: 30.5% (Q2 2019: 32.1%) EBIT EUR 63.6m (Q2 2019: EUR 74.6m) EBIT margin: 21.2% (Q2 2019: 23.9%) Capex EUR 88.6m (Q2 2019: EUR 105.1m) Net cash flow EUR -8.8m (Q2 2
Slide 3: Market Update
MARKET UPDATE © Siltronic AG
Slide 4: Market development
Market development Economic sentiment softens across major economies GDP grew at a slower pace QoQ while PMI is in negative territory for all major regions Unemployment remains low in most regions Consumer confidence varies from region to region Silicon wafer volumes down Q3 SEMI market was
Slide 5: End markets expectations for early 2020 rather flattish: visibility for 2020 extremely low
End markets expectations for early 2020 rather flattish: visibility for 2020 extremely low Smartphones PCs/Laptops Servers Automotive Industrial Volumes expected Volumes expected Data center growth Car volumes have Silicon demand to be flat to be rather flattish expected to be been softeni
Slide 6: Silicon outlook: Demand muted due to high inventories
Silicon outlook: Demand muted due to high inventories Silicon demand drivers Units in 2020 Content Die / density Semi device inventories Impact end of 2019 Smart- phones PCs computing Server Industry Cars . Siltronic Marketing Oct. 2019 Siltronic AG – Q3 2019 Conference Call Presentation October 24,
Slide 7: Financials Q3 2019
FINANCIALS Q3 2019 © Siltronic AG
Slide 8: Sales development negatively impacted by lower wafer area demand
Sales development negatively impacted by lower wafer area demand Sales, in EUR million Ø FX rates Q3/18 Q4 Q1/19 Q2 Q3 EUR / USD 1.16 1.14 1.14 1.12 1.11 EUR / JPY 130 129 125 124 124 Comment Sales in Q3 down as expected due to lower wafer area sold and minimal price 379.8 388.1 reductions especia
Slide 9: Higher energy costs and depreciation burden cost of sales
Higher energy costs and depreciation burden cost of sales Cost of Sales, in EUR million Gross profit, in EUR million / Gross margin, in % 46.1 46.4 40.8 36.1 34.6 204.8 208.1 209.9 199.4 196.1 175.0 180.0 144.5 112.4 103.7 Q3 2018 Q4 Q1 2019 Q2 Q3 Q3 2018 Q4 Q1 2019 Q2 Q3 Other currency effects (mos
Slide 10: High US-Dollar and Japanese Yen exposure
High US-Dollar and Japanese Yen exposure FX exposure, in % Sensitivity 1 USD-cent change ~ 10% ~ EUR 8.0 million sales ~ 25% exposure ~ EUR 6.5 million EBITDA unhedged ~ EUR 4.5 million EBITDA after hedging 1 JPY change ~65% ~ EUR 2.5 million sales ~ 65% ~ EUR 2.0 million EBITDA unhedged
Slide 11: Profitability affected by lower loading, higher energy costs and slightly increased depreciation
Profitability affected by lower loading, higher energy costs and slightly increased depreciation EBITDA, in EUR million / EBITDA margin, in % Depreciation, in EUR million 42.2 41.4 35.9 32.1 30.5 160.2 160.8 127.2 100.0 91.5 -22.2 -21.9 -23.8 -25.4 -27.9 Q3 2018 Q4 Q1 2019 Q2 Q3 Q3 2018 Q4 Q1 2019 Q
Slide 12: Net profit of EUR 216 million in Q1-Q3 2019
Net profit of EUR 216 million in Q1-Q3 2019 Net profit, in EUR million EPS, in EUR 114.6 3.53 3.25 106.0 87.6 2.68 68.5 59.5 1.98 1.65 Q3 2018 Q4 Q1 2019 Q2 Q3 Q3 2018 Q4 Q1 2019 Q2 Q3 Dividend payment, in EUR million Comment Net profit EUR 215.6m in Q1-Q3 Tax rate down to 12% in Q1-Q3 General
Slide 13: Working Capital up q-o-q but down y-o-y
Working Capital up q-o-q but down y-o-y Working capital, in EUR million, Inventories and contract assets, in EUR million Working capital ratio to quarterly sales, in % Inventories Contract assets 60 69 59 56 58 60 40 183.8 168.0 177.4 180.2 152.0 227.8 227.7 199.4 207.0 20 182.4 0 Sep 18 Dec 18 Mar
Slide 14: Strong equity ratio and solid net financial assets
Strong equity ratio and solid net financial assets Equity, in EUR million Provisions for pensions, Net financial assets, Equity ratio, in % in EUR million in EUR million 50.4 48.4 48,4 43.4 42.4 Interest rates IFRS USA 4.02% 4.08% 3.69% 3.37% 2.99% Germany 2.04% 1.98% 1.66% 1.29% 0,97% 916 968 762 8
Slide 15: Pension reserves impacted by low IFRS interest rates
Pension reserves impacted by low IFRS interest rates DBO and pension reserves, in EUR million Comment 1228 ~850 662 DBO of EUR 1,228 million – assets of EUR 662 million = EUR 566 million USA mostly funded 147 2,99% 147 3% Pension reserves @3% = DBO of EUR 115 850 million – assets EURO 662 millio
Slide 16: Strong net cash flow despite high payments for capex
Strong net cash flow despite high payments for capex Operating cash flow (OCF), in EUR million Customer prepayments net (PP), in EUR million 165.4 131.1 80.7 79.1 74.4 18.7 4.4 Q3 2018 Q4 Q1 2019 Q2 Q3 -16.7 -16.2 -15.5 Q3 2018 Q4 Q1 2019 Q2 Q3 CF Capex, in EUR million Net cash flow (NCF), in EUR mi
Slide 17: Outlook
OUTLOOK © Siltronic AG
Slide 18: Siltronic Outlook 2019 (as of October 24, 2019)
Siltronic Outlook 2019 (as of October 24, 2019) EBITDA margin between 30% and 35% EBIT significantly below 2018 Net cash flow clearly positive, approx. EUR 180m below 2018 Sales depending on timing of market recovery and on FX effects around 10% to 15% below 2018 Cost position negative eff
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 Investor Relations: Listing: Frankfurt Stock Exchange Petra Mueller Prime Standard 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 | Hanns-Seidel-Platz
SILTRONIC AG | Hanns-Seidel-Platz 81737 Munich 4 Germany © Siltronic AG