Siltronic Ag · XETR:WAF

Siltronic — Siltronic Ag Ord — Q2 2023 Earnings Presentation

23 slides from Siltronic's earnings presentation, Jul 27, 2023

  1. Slide 1: Siltronic AG Q2 2023 Conference Call Presentation

    Siltronic AG Q2 2023 Conference Call Presentation Sound Basis For Future Growth July 27, 2023 © Siltronic AG

  2. Slide 2: New management team is preparing Siltronic for expected medium-term growth

    New management team is preparing Siltronic for expected medium-term growth Claudia Michael Schmitt Heckmeier CFO CEO Source: Siltronic Siltronic AG – Q2 2023 Conference Call July 27, 2023 2

  3. Slide 3: My first 83 impressive days with Siltronic

    My first 83 impressive days with Siltronic European player with a global footprint – field trips to Burghausen/Freiberg, Portland, Singapore Impressed by the unique skills, deep technology understanding and commitment everywhere High-tech company with strong innovation focus Exciting products with h

  4. Slide 4: We will leverage Siltronic's USPs to take our company to the next profitable growth level

    We will leverage Siltronic's USPs to take our company to the next profitable growth level Dynamic upward Important player in trend in the next a market crucial for years, driven by the future of global AI, digitalization economy and electromobility Only western wafer Siltronic is manufacturer primed

  5. Slide 5: Q2 2023 with expected solid development - business impacted by industry weakness

    Q2 2023 with expected solid development - business impacted by industry weakness 404 Sales in Million EUR -310 Net Cash Flow in Million EUR Q1 2023: 404 Q1 2023: -106 29.4 EBITDA Margin in % Stable Market share Q1 2023: 31.0 366 Capex in Million EUR Early 2024 FabNext Q1 2023: 260 Production start S

  6. Slide 6: Financials Q2 2023

    Financials Q2 2023 Sound and expected performance in a very challenging environment © Siltronic AG

  7. Slide 7: Q2 in line with expectations, pricing sentiment stable

    Q2 in line with expectations, pricing sentiment stable Profit & Loss, in EUR million Comments Q2 2023 Q1 2023 Sales: Stable qoq  Slight pressure from FX, prices stable Sales 403.7 404.4 EBITDA: -5% qoq, strong margin Gross profit 101.1 116.2  Higher unit cost for supplies and raw material, Gross m

  8. Slide 8: Strong balance sheet, expected shift between cash & securities and fixed assets

    Strong balance sheet, expected shift between cash & securities and fixed assets Balance Sheet Composition Comments Jun 30, 2023 Dec 31, 2022 Fixed assets: + EUR 488 mn vs. Dec 31, 2022 Assets, in EUR mn 4,078 4,051  Increase to EUR 2.9 bn due to high capex Fixed Assets 70% 58% Cash & Securities: -

  9. Slide 9: Major Capex in 2023 (mostly for FabNext) will fuel future growth

    Major Capex in 2023 (mostly for FabNext) will fuel future growth Investment, in EUR million Comments ~1,300 Capex  Capex 2023 for FabNext, extension of crystal pulling 1,074 hall in Freiberg and capability enhancement  Capex 2024 down by more than half  Depreciation will more than double in 2024

  10. Slide 10: High Capex transforms net financial assets into debt

    High Capex transforms net financial assets into debt Net Financial Debt, in EUR million Comments Net Four financing instruments in place financial assets 374 Dec 31, 2022  ESG linked promissory note loan  Singapore Dollar bilateral loan Operating Cash flow 231  European Investment Bank bilateral

  11. Slide 11: Outlook 2023 and beyond

    Outlook 2023 and beyond Getting ready for the next profitable growth phase © Siltronic AG

  12. Slide 12: Market weakness with significant excess inventory

    Characteristics of current market development Market weakness with significant Environment of excess inventory price stability and volume shifts High profitability We benefit from a despite market high LTA share weakness Siltronic AG – Q2 2023 Conference Call July 27, 2023 12

  13. Slide 13: End markets are expected to stagnate in 2023 (before inventory effects)

    End markets are expected to stagnate in 2023 (before inventory effects) Consumption of wafers Growth in demand for wafer area by end use 2022, in % 2023 vs. 2022, in % 22% Smartphones 22 -3 PCs 17 -17 Server 11 10 Industrial 16 2 20% Automotive 14 17 Others1 20 -1 Total: -1 Source: Siltronic estimat

  14. Slide 14: Inventory reductions at multiple levels anticipated to reduce wafer demand by around 15%

    Inventory reductions at multiple levels of the value chain are anticipated to reduce wafer demand by around 15% Composition of growthder Zusammensetzung drivers for wafer marketfür Wachstumstreiber 2023 S vs. vs.2022, TAM, in % -1 % Inventory reduction at ~ -15% Total end markets customers and OEMs

  15. Slide 15: Outlook 2023 – H2 stronger than H1, Q3 will be the trough

    Outlook 2023 – H2 stronger burdened than H1, Q3 will be the trough from today's perspective FY 2023 Sales Capex 14%  19% around EUR 1.3 bn below 2022 Net Cash Flow EBITDA Margin significantly 26%  30% below 2022 Depreciation Tax Rate around EUR 210 mn around 10% Based on FX assumption EUR/USD at 1

  16. Slide 16: And beyond? My crystal ball is as good as yours

    And beyond? My crystal ball is as good as yours Memory inventory still elevated First positive signs from Logic players (AI) Power still strong with nice content growth Watching consumer sentiment in China Inflation Geopolitical risks Time lag for wafer industry ~ 6 months Source: nigel-tadyanehondo

  17. Slide 17: All experts agree: Growth areas AI, digitalization and electromobility will drive wafer demand

    All experts agree: Growth areas AI, digitalization and electromobility will drive wafer demand Artificial Intelligence AI Servers up to 8x more silicon content AI < 5% of servers shipped worldwide AI growth rates > 30% in the next years Digitalization Assistant systems in cars Replacement of analog

  18. Slide 18: Siltronic has a diversified and resilient product mix

    Siltronic has a diversified and resilient product mix 2022 Market Product Mix by Segment 2023 Markt Power and others Memory ~1/3 ~1/3 ~1/3 Logic Our market share per segment almost mirrors this picture Source: Siltronic estimate, July 4, 2023 Siltronic AG – Q2 2023 Conference Call July 27, 2023 18

  19. Slide 19: FabNext: Production to start in early 2024, detailed ramp timing depends on market reality

    FabNext: Production to start in early 2024, detailed ramp timing depends on market reality On track, production to start in early 2024 Advantages: High automation, high EPI share, Economies of Scale, State of the art Ramp speed for 2024 and 2025 slightly reduced according to market reality Most cost

  20. Slide 20: We have very solid financial strength for future growth

    Strong commitment to create substantial shareholder value We have very solid We have strong financial strength customer relations for future growth with high LTA share We have a strong We see significant technological sales and position and a earnings upside clear innovation with expected focus mark

  21. Slide 21: Contact and Additional Information

    Contact and Additional Information Issuer and Contact Additional Information Siltronic AG ISIN: DE000WAF3001 Einsteinstraße 172 WKN: WAF300 D-81677 München Deutsche Börse: WAF Listing: Frankfurt Stock Exchange Investor Relations: Prime Standard Verena Stütze E-mail: investor.relations@siltronic.com

  22. Slide 22: 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

  23. Slide 23: Siltronic AG, Einsteinstrasse, Munich

    SILTRONIC AG | Einsteinstrasse 81677 Munich 172 Germany © Siltronic AG

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