Slide 1: Siltronic AG Q3/2017 Results
Siltronic AG Q3/2017 Results October 26, 2017 © Siltronic AG 2017
Slide 2: Market Overview & Capex Strategy
MARKET OVERVIEW & CAPEX STRATEGY ……Capabilities, automation and incremental invest to keep stable market share without providing excess capacity to the market ….. © Siltronic AG 2017
Slide 3: Highlights Q3/2017: Financials
Highlights Q3/2017: Financials Sales Sales of EUR 308.1m (Q2/2017: EUR 283.1m) EBITDA EUR 106.5m (Q2/2017: EUR 72.7m) Margin EBITDA margin of 34.6% (Q2/2017: 25.7%) EUR 77.8m (Q2/2017: EUR 43.4m) EBIT & ROCE ROCE 43.4% (Q2/2017: 24.0%) CapEx EUR 16.9m (Q2/2017: EUR 25.5m) Free Cash Flow EUR 58.2m (Q
Slide 4: Market highlights
Market highlights Semiconductors Semiconductor market continued its strong growth in August Units grew +14.8% y-o-y (3MMA) Silicon wafer demand Silicon shipment volumes forecast to be 11,448 million square inches in 2017, 8.2% up y-o-y Price increases Price increases for 300 mm wafers contin
Slide 5: Siltronic will incrementally add 70kWfr/month by mid-2019
Siltronic will incrementally add 70kWfr/month by mid-2019 2017/18 only debottlenecking / OEE improvement possible Decision taken to add ~70kWfr/month by mid-2019: around 15-18 months lead-time Capacity extension supported by LTAs & customer prepayments Keep 300mm market share of ~ 15% Inve
Slide 6: Financials Q3/2017
FINANCIALS Q3/2017 …price increases accelerate continuous improvement ……. © Siltronic AG 2017
Slide 7: Q3 sales development driven by increased prices
Q3 sales development driven by increased prices Sales, in EUR million +8.8% Comments 308.1 Positive 283.1 Slight volume growth q-o-q, especially in smaller 258.0 246.3 diameters 237.0 Higher wafer prices for 300mm and 200mm in Q3 ASP up y-o-y and q-o-q Further price increases negotiated fo
Slide 8: Positive development of EBITDA and EBITDA margin mainly due to higher ASP
Positive development of EBITDA and EBITDA margin mainly due to higher ASP EBITDA margin in %; EBITDA in EUR million Comments 34.6 Positive Higher ASP y-o-y and 25.7 q-o-q Successful cost reduction 20.5 20.5 program continued – cost of sales per wafer area 15.6 decreased 106.5 72.7 50.5 53.0 36
Slide 9: Positive development of net result due to price increases
Positive development of net result due to price increases Result and income tax, in EUR million Comments -9.8 Net profit of EUR 66.0m in Q3/2017 Price increases and lower cost of sales per wafer area had positive effects EUR 9.8m effective taxes -6.0 75.8 66.0 Potential future tax advantages
Slide 10: Equity ratio of ~50%, Net financial assets of EUR 295m
Equity ratio of ~50% Net financial assets of EUR 295m Balance sheet, in EUR million Sep 30, Dec 31, Comments Equity and Sep 30, Dec 31, Comments Assets 2017 2016 Sep 30, 2017 liabilities 2017 2016 Sep 30, 2017 Non-current 516.1 554.1 Equity 588.3 425.3 PP&E 481.2 519.8 Siltronic 590.6 431.9 24 intan
Slide 11: Fluctuations in pension provision due to interest rate movements
Fluctuations in pension provision due to interest rate movements Pension provision, in EUR million 496 473 395 379 371 Comments 345 341 Changes in interest rates influence evaluation of pension provision Change in interest rates directly reflected in equity (OCI) Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 i
Slide 12: Net financial assets nearly doubled since IPO
Net financial assets nearly doubled since IPO Net financial assets, in EUR million Dividend policy introduced in September 2017 Pay-out ratio of ~40% of net shareholder 295 earnings based on IFRS standards 241 Dividend for 2017 payable in 2018 209 depending on approval of Annual General 175 Me
Slide 13: Capex will rise to EUR ~200m in 2018
Capex will rise to EUR ~200m in 2018 Investment, in EUR million Comments ~200 Capex of EUR ~140m for 70k wafers/month over 2 years ~120 Exchange of ingot pullers (capability ~120 improvement) in Freiberg to be completed in ~20 2017 First preparations already needed in 2017 to incrementally inc
Slide 14: Increasing free cash flow generation
Increasing free cash flow generation Capex and FCF, in EUR million Comments Repayment of prepayments: EUR ~5m per quarter Customer prepayments EUR 17.3 m received up to Q3/2017 for product mix 58.2 optimization Expect further 41.8 prepayments in 2017 and 31.3 2018 23.9 25.5 22.1 19.3 15.7
Slide 15: Outlook
OUTLOOK ……a positive outlook in Q4/2017 and beyond….. © Siltronic AG 2017
Slide 16: Siltronic Outlook 2017 (Update as of October 26, 2017)
Siltronic Outlook 2017 (Update as of October 26, 2017) EBITDA margin at least 29% update ROCE substantially higher than in 2016, considerably higher than WACC Free Cash Flow clearly positive; by far above 2016 Sales at least EUR 1.16bn update R&D approx. 6% of sales update Cost Position potential sa
Slide 17: 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 18: 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 19: Siltronic AG
SILTRONIC AG | Hanns-Seidel-Platz 81737 Munich 4 Germany © Siltronic AG 2017