Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q3 2015 Earnings Presentation
18 slides from Daqo New Energy's earnings presentation, Nov 18, 2015
Slide 1: Daqo New Energy Corp. Q3 2015 Financial Results Presentation
Daqo New Energy Corp. Q3 2015 Financial Results Presentation November 18,, 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “antici
Slide 3: Agenda
Agenda Business us ess Highlights g g ts and a d Summary Su ay Financial Results and Update Q&A PRIVATE & CONFIDENTIAL P. 3
Slide 4: Business update and Q3 2015 highlights
Business update and Q3 2015 highlights Cost Structure total production cost of $11.15/kg in Q3 2015, a decrease of 14.1% from $12.98/kg in Q2 2015. cash cost of $8.71/kg in Q3 2015, a decrease of 17.8% from $10.60/kg in Q2 2015. Polysilicon production volume of 2,689 MT in Q3 2015, an increase o
Slide 5: Daqo Xinjiang Polysilicon Phase 2B
Daqo Xinjiang Polysilicon Phase 2B PRIVATE & CONFIDENTIAL P. 5
Slide 6: Market update
Market update According to the data released by China National Energy Administration, China added 9.9 GW of solar PV installations in the first three quarters of 2015 2015, which has brought China’s China s cumulative solar PV installation to 38 GW. We expect the annual installation target of 17.8 G
Slide 7: Market price trend (by PVinsights)
Market price trend ( by PVinsights) Polysilicon spot market price ($/kg) Wafer ASP ($ / piece) $0.94 $21.61 $21.37 $20.83 $20.35 $0.90 $17.87 $18.71 $ 8 $17 45 $17.45 $0.88 $16.94 $16.78 $16.05 $15.12 $0.85 $0.85 $0.85 $0.84 $0.84 $0.82 $0.81 $0.81 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2
Slide 8: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q3 2015 key facts Outlook 2,689 MT production Expected sales volume in Q4 2015: 2,800 ~ 3,000 MT 2,277 MT sold to external customers Cost targets: (average total production costs) Solar Grade I: 96.6% in Q3 2015 -- <$10.50/kg in Q4 2015 Q3 2015 tota
Slide 9: Polysilicon manufacturing overview
Polysilicon manufacturing overview Production Volume (MT) Cash cost and Depreciation ($/kg)* 2,689 1,801 1,734 4.76 1,791 1,748 1,517 5.43 1,445 1,504 4.16 3.77 1,311 2.74 2.65 2.33 2.35 2.27 2.38 1,088 962 2.44 15.83 12.21 11.82 11.98 11.75 11.48 10.72 10.88 10.53 10.60 8.71 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Wanzhou wafer facilities update
Wanzhou wafer facilities update Q3 2015 key facts Q4 sales volume outlook Annual A l capacity it off approximately i t l Q4 2015 wafer f sales l volume: l 72 million pieces (310 MW) 20.5 ~21.0 million pieces 19.1 million pieces sold to customers Technology enhancement project: Reduce manuf
Slide 11: Sales volume in Q3 2015 and outlook for Q4 2015
Sales volume in Q3 2015 and outlook for Q4 2015 Q4 2015E Sales Volume Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 guidance 2,800~ y Polysilicon ((MT)) 1,528 , 1,646 , 1,502 , 1,363 , 2,277 , 3 000 3,000 Wafer 17.1 18.3 18.1 18.3 19.1 20.5~21.0 (million pieces) Ingot & block (MT) 5.0 - - - - - PRIVATE &
Slide 12: Agenda
Agenda Business Highlights and Summary Financial Results and Update p Q&A PRIVATE & CONFIDENTIAL P. 12
Slide 13: Q3 2015 financial highlights
Q3 2015 financial highlights Revenues were $46.6 million, compared to $34.3 million in Q2 2015; Polysilicon production cost of $11.15/kg, compared to $12.98/kg in Q2 2015; cash cost of $8.71/kg in Q3 2015, compared to $10.60/kg in Q2 2015; Gross profit was $8.6 million, compared to $3.6 millio
Slide 14: P&L summary (Q3 2015 vs. Q2 2015)
P&L summary (Q3 2015 vs. Q2 2015) US$ in millions Q3 2015 Q2 2015 Change Analysis Polysilicon: Sales volume↓ , ASP↓ Revenues 46.6 34.3 12.3 Wafer: OEM↑ Polysilicon sales volume↑ Cost of revenues (38.0) (30.7) 7.3 Polysilicon unit production cost↓ Gross profit (loss) 8.6 3.6 5.0 Gross margin 18.4% 10
Slide 15: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q3 2015 Q2 2015 Change Net income (loss) 3.1 (0.9) 4.0 Income tax (benefit) expenses 0.6 (0.2) 0.8 Interest expense 3.1 2.6 0.5 Interest income (0.05) (0.13) 0.08 Depreciation 8.3 7.0 1.3 EBITDA (1) 15.0 8.4 6.6 EBITDA margin (1) 32.1% 24.6% 7.5% Gross profit
Slide 16: Balance sheet summary
Balance sheet summary Change (Q3 2015 vs. US$ in millions 9/30/2015 6/30/2015 Q2 2015) 9/30/2014 Cash and restricted Cash 68.7 95.1 (26.4) 30.0 Accounts receivable 15.4 7.0 8.4 6.8 Notes receivable 16.5 38.3 (21.8) 36.8 I Inventories t i 12 2 12.2 10 5 10.5 17 1.7 11 3 11.3 Prepaid land use rights 2
Slide 17: Cash flow summary
Cash flow summary 9 months ended 9 months ended US$ in millions Sep 30, 2015 Sep 30, 2014 Net cash provided by operating activities 65.6 47.7 Net cash (used in) investing activities (82.7) (81.0) Net cash provided by financing activities 38 1 38.1 38 1 38.1 Effect of exchange rate changes 0.06 0.04
Slide 18: Agenda
Agenda Business us ess Highlights g g ts and a d Summary Su ay Financial Results and Update Q&A PRIVATE & CONFIDENTIAL P. 18