Siltronic Ag · XETR:WAF
Siltronic — Q1 2020 Earnings Presentation
21 slides from Siltronic's earnings presentation, Apr 28, 2020
Slide 1: Siltronic AG Q1 2020 Conference Call Presentation
Siltronic AG Q1 2020 Conference Call Presentation April 28, 2020 © Siltronic AG
Slide 2: Corona Update
Corona Update Employee safety highest priority Various measures in place to protect our people Production running smoothly at all sites No production shutdowns Delays in some invest projects due to travel ban Time loss on start of operation of some equipment Freight costs will increase
Slide 3: 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 4: Highlights Q1 2020: Financials
Highlights Q1 2020: Financials Sales EUR 300.1m (Q4 2019: EUR 304.3m) EBITDA EUR 84.2m (Q4 2019: EUR 90.0m) EBITDA margin: 28.1% (Q4 2019: 29.6%) EBIT EUR 53.3m (Q4 2019: EUR 56.7m) EBIT margin: 17.8% (Q4 2019: 18.6%) Capex EUR 46.0m (Q4 2019: EUR 96.4m) Net cash flow EUR 40.9m (Q4 201
Slide 5: Financials Q1 2020
FINANCIALS Q1 2020 © Siltronic AG
Slide 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: Outlook
OUTLOOK © Siltronic AG
Slide 16: Negative corona effects on silicon demand in H2 2020 not quantifiable as of today
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 17: Siltronic Outlook 2020 (unchanged as of March 4, 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 18: Appendix
APPENDIX © Siltronic AG
Slide 19: 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 20: 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 21: Siltronic AG
SILTRONIC AG | Hanns-Seidel-Platz 81737 Munich 4 Germany © Siltronic AG