Siltronic Ag · XETR:WAF

Siltronic — Q1 2020 Earnings Presentation

34 slides from Siltronic's earnings presentation, Apr 28, 2020

Slide 2: Increasing demand for electronic devices drives semiconductor growth and silicon demand
Increasing demand for electronic devices and new applications drive semiconductor growth, which in turn fuels silicon demand Electronics value chain 2019 Electronics USD 1,680 bn Semiconductors USD 400 bn Semiconductor silicon wafers USD 11.2 bn Silicon for electronic applications USD 1.1 bn Source:
Slide 3: Siltronic has a relevant global market share
Siltronic has a relevant global market share… Top 5 wafer producers serve more than 90% of market across all diameters 17% 12% 13% 25% 33% SK Siltron Siltronic Shin Etsu Sumco GlobalWafers Sources: reported company revenues Q1-Q4 2019, converted to USD million Siltronic AG – Investor Presentation Q1
Slide 4: ... and an international manufacturing network
... and an international manufacturing network Freiberg CP* 300 mm Germany Portland 200 mm United States Burghausen CP* 300 mm SD* ► Central R&D hub in Burghausen ► High volume facilities for 300 mm in Germany and Singapore ► Among world’s newest & largest SSW CP* 300 mm SSP 200 mm fabs in Singapore
Slide 5: Siltronic is focused on growing 300 mm and attractive 200 mm business
Siltronic is focused on growing 300 mm and attractive 200 mm business. Development of Total Wafer Demand per Diameter, in mn 300 mm equivalents per month Strong 7 demand 300 mm 200 mm SD (pol/epi) & 6 growth 5 4 3 Stable & attractive 2 1 Mid-term decline 0 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 6: Cost-competitiveness a pre-requisite
Cost-competitiveness a pre-requisite Major cost items Cost development 2020  Productivity improvement  Labour  Supply savings  Recycling  Energy efficiency  Supplies COLA (cost of living  Lower success adjustment) sharing  Automation  Depreciation Freight Costs  Polysilicon  Energy Unit c
Slide 7: Overview Financials
Overview Financials Adjusted financial figures (EUR million) 2016 2017 2018 2019 Q1 2020 Sales 933.4 1,177.3 1,456.7 1,270.4 300.1 EBIT 27.0 235.7 497.7 298.3 53.3 EBIT margin in % 2.9 20.0 34.2 23.5 17.8 EBITDA 146.0 353.1 589.3 408.7 84.2 EBITDA margin in % 15.6 30.0 40.5 32.2 28.1 Earnings per sh
Slide 8: Creating value for all stakeholders
Creating value for all stakeholders ... its customers and suppliers … its shareholders  Quality & Innovation  Long-term value enhancement  Technology leadership  Attractive return  Customer service  On-going cost reduction Siltronic offers … its employees ... the environment and society  Occu
Slide 9: Clear commitment to sustainability
Clear commitment to sustainability Sustainability at Siltronic AG  Claim: We understand sustainability not only as responsible action, but also want to generate competitive advantages through our sustainable actions.  Strategy: We plan resource-saving right from the start, based on product and pro
Slide 10: Environment - Efficiency as a success factor
Environment - Efficiency as a success factor Selection of non-financial performance indicators in 2019 Raw Material Energy Energy consumption Silicon yield per wafer area improved by decreased by 4% 4.5% vs. 2018 vs. 2018 Recycling Occupational Safety The share of returnable The number of accidents
Slide 11: CSR targets until 2030
CSR targets until 2030 Consistently sustainable action secures long-term competitive advantages for Siltronic Reduce specific greenhouse gas emissions by 20%1 Reduce specific energy consumption by 20%1 Reduce specific water consumption by 20%1 Increase water recycling by 25%1 Increase waste recyclin
Slide 12: Investor structure well diversified with a strong anchor shareholder
Investor structure well diversified with a strong anchor shareholder Identified free float by region (as of November 2019) 42.2 % 18% 30% 69.2 % 35% 17% 100 % USA UK Germany Other 57.8 % Significant notifications of voting rights (as of April 20, 2020) 30.8 % Allianz Global Investors 5.13% State of
Slide 13: Siltronic strategy - capitalize on market opportunities
Siltronic strategy - capitalize on market opportunities while focusing on 300 mm & technological leadership Optimize returns, stay ahead in technology and grow with the market Strategic Focus Grow Ensure Improve Execute with the market technology & financial performance cost reduction quality leader
Slide 15: Q1 sales only slightly down sequentially
Q1 sales only slightly down sequentially Sales, in EUR m Ø FX rates Q1/19 Q2 Q3 Q4 Q1/20 EUR / 1.14 1.12 1.11 1.11 1.10 USD EUR / 125 124 119 120 120 JPY Comments  Q1 sales only slightly down q-o-q: higher wafer area sold almost compensated lower ASP  Tailwind from USD y-o-y but no major change q-
Slide 16: Cost of sales slightly up due to higher wafer area produced
Cost of sales slightly up due to higher wafer area produced Cost of sales, in EUR m Gross profit, in EUR m / Gross margin, in % 40.8 36.1 34.6 31.8 29.8 209.9 199.4 196.1 207.4 210.8 144.5 112.4 103.7 96.9 89.3 Q1 2019 Q2 Q3 Q4 Q1 2020 Q1 2019 Q2 Q3 Q4 Q1 2020 Selling, R&D and admin expenses, in EUR
Slide 17: 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 18: Profitability affected by lower ASP
Profitability affected by lower ASP EBITDA, in EUR m / EBITDA margin, in % Depreciation, in EUR m 35.9 32.1 30.5 29.6 28.1 127.2 100.0 91.5 90.0 84.2 -23.8 -25.4 -27.9 -33.3 -31.0 Q1 2019 Q2 Q3 Q4 Q1 2020 Q1 2019 Q2 Q3 Q4 Q1 2020 EBIT, in EUR m / EBIT margin, in % Comments  Higher production volume
Slide 19: Net profit of EUR 46 million
Net profit of EUR 46 million Net profit, in EUR m EPS, in EUR 87.6 2.68 68.5 59.5 1.98 1.65 45.4 46.0 1.21 1.32 Q1 2019 Q2 Q3 Q4 Q1 2020 Q1 2019 Q2 Q3 Q4 Q1 2020 Dividend payment, in EUR m Comments  Net profit of EUR 46.0 million  Tax rate of 3% in Q1 exceptionally low due to deferred tax income a
Slide 20: 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 56 58 55 60 40 21,1 21.4 19.2 14.6 14.5 199.4 182.4 207.0 179.5 20 168.3 156.3 158.8 164.6 152.8 154.6 0 Mar 19 Jun 19 Sep
Slide 21: Strong equity ratio and solid net financial assets
Strong equity ratio and solid net financial assets Equity, in EUR m Provisions for pensions, Net financial assets, Equity ratio, in % in EUR m in EUR m 52.8 48.4 47.8 43.4 42.4 Interest rates IFRS USA 3.69% 3.37% 2.99% 2.98% 2.88% Germany 1.66% 1.29% 0,97% 1.24% 1.92% 1,031 968 930 762 804 809 566 5
Slide 22: 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 23: Net cash flow up q-o-q
Net cash flow up q-o-q Operating cash flow (OCF), in EUR m Customer prepayments net (PP), in EUR m 131.1 100.7 85.6 79.1 74.4 3.6 -16.7 -16.2 -15.5 -21.6 Q1 2019 Q2 Q3 Q4 Q1 2020 Q1 2019 Q2 Q3 Q4 Q1 2020 CF Capex, in EUR m Net cash flow (NCF), in EUR m 80.8 0.4 8.9 40.9 -67.1 -66.3 -8.8 -94.9 -98.7
Slide 25: Overall Q1 silicon demand not impacted by Covid-19
Overall Q1 silicon demand not impacted by Covid-19 Logic Industry / Auto  Foundry business: strong  Auto: units weak but somewhat compensated by ADAS  Servers: strong (Home Office, gaming)  Traditional applications: high inventories  Inventories: ok  Hybrid and electrical cars: units weak 300
Slide 26: Negative corona effects on silicon demand in H2 2020 not quantifiable
Negative corona effects on silicon demand in H2 2020 not quantifiable as of today Market development What to expect  Many shops closed, consumer demand down –  Final impact of Corona on semi supply chain less smartphones and consumer devices sold and global economy not yet to be determined  PC an
Slide 27: Siltronic Outlook 2020
Siltronic Outlook 2020 (unchanged as of March 4, 2020) Before Covid-19 (with less impact Further spread of Covid-19 (with on semi market) higher impact on semi market) Sales slightly below 2019 significantly below 2019 EBITDA margin slightly below 2019 significantly below 2019 Depreciation around EU
Slide 29: Pension reserves down due to higher IFRS interest rates in Germany
Pension reserves down due to higher IFRS interest rates in Germany DBO and pension reserves, in EUR m Comment  DBO of EUR 1,045 million – assets of EUR 634 million = EUR 411 million 1,045 ~850 634  Pension reserves @3% = DBO of EUR ~850 million – assets EURO 634 million USA mostly = EUR 216 millio
Slide 30: Production process - ingot growing
Production process - ingot growing Siltronic AG – Investor Presentation Q1 2020 April 28, 2020 30 of 34
Slide 31: Production process - wafering
Production process - wafering Siltronic AG – Investor Presentation Q1 2020 April 28, 2020 31 of 34
Slide 32: 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 33: 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

Siltronic — Q1 2020 Earnings Presentation on 6ix

Siltronic — Q1 2020 Earnings Presentation

Slide 1: Investor Presentation – Q1 2020

Slide 2: Increasing demand for electronic devices drives semiconductor growth and silicon demand

Slide 3: Siltronic has a relevant global market share

Slide 4: ... and an international manufacturing network

Slide 5: Siltronic is focused on growing 300 mm and attractive 200 mm business

Slide 6: Cost-competitiveness a pre-requisite

Slide 7: Overview Financials

Slide 8: Creating value for all stakeholders

Slide 9: Clear commitment to sustainability

Slide 10: Environment - Efficiency as a success factor

Slide 11: CSR targets until 2030

Slide 12: Investor structure well diversified with a strong anchor shareholder

Slide 13: Siltronic strategy - capitalize on market opportunities

Slide 14: Financials Q1 2020

Slide 15: Q1 sales only slightly down sequentially

Slide 16: Cost of sales slightly up due to higher wafer area produced

Slide 17: High US-Dollar and Japanese Yen exposure

Slide 18: Profitability affected by lower ASP

Slide 19: Net profit of EUR 46 million

Slide 20: Working capital slightly up

Slide 21: Strong equity ratio and solid net financial assets

Slide 22: Capex 2020 significantly down vs. 2019

Slide 23: Net cash flow up q-o-q

Slide 24: Outlook

Slide 25: Overall Q1 silicon demand not impacted by Covid-19

Slide 26: Negative corona effects on silicon demand in H2 2020 not quantifiable

Slide 27: Siltronic Outlook 2020

Slide 28: Appendix

Slide 29: Pension reserves down due to higher IFRS interest rates in Germany

Slide 30: Production process - ingot growing

Slide 31: Production process - wafering

Slide 32: Contact and Additional Information

Slide 33: Disclaimer

Slide 34: Siltronic AG