Siltronic Ag · XETR:WAF
Siltronic — Siltronic Ag Ord — Q1 2024 Earnings Presentation
17 slides from Siltronic's earnings presentation, May 2, 2024
Slide 1: Q1 2024 Managing Ongoing Soft Demand
Q1 2024 MANAGING ONGOING SOFT DEMAND Dr. Michael Heckmeier & Claudia Schmitt May 2, 2024 © Siltronic AG
Slide 2: Key Messages of Today's Call
KEY MESSAGES OF TODAY'S CALL Q1 2024 affected by 2024: A transition year demand weakness Ambition for 2028 unchanged: Ready to harvest market Sales > EUR 2.2 bn upswing driven by megatrends EBITDA-margin in the high 30’s 2 Q1 2024 Conference Call Presentation © Siltronic AG
Slide 3: Q1 2024 Affected by Market Weakness
Q1 2024 AFFECTED BY MARKET WEAKNESS 343.5 Sales in EUR mn 173.0 Capex in EUR mn -3.7% vs Q4 2023 Mainly for FabNext 26.4 EBITDA Margin in % -158.4 Net cash flow in EUR mn Q4 2023: 25.5% Due to ongoing investments 0.86 Earnings per share in EUR Stable Prices and market share Q4 2023: EUR 1.01 3 Q1 20
Slide 4: Financials Q1 2024
FINANCIALS Q1 2024 in line with expectations 4 Q1 2024 Conference Call Presentation © Siltronic AG
Slide 5: No Surprises in Q1 2024 Figures
NO SURPRISES IN Q1 2024 FIGURES Profit & Loss, in EUR million Comments qoq1 n Q1 2024 Q4 2023 Q1 2023 Sales o -3.7% mainly due to typical product mix shifts between quarters Sales 343.5 356.6 404.4 and FX Gross profit 70.1 79.2 116.2 o Stable wafer area and prices Gross margin, in % 20.4 22.2 28.7 E
Slide 6: Good Balance Sheet Quality – Solid Financial KPIs
GOOD BALANCE SHEET QUALITY – SOLID FINANCIAL KPIs Balance Sheet Composition Comments1 Mar 31, 2024 Dec 31, 2023 Fixed assets EUR +153 mn ○ Further increase to EUR 3.6 bn due to high capex Assets, in EUR mn 4,631 4,505 Working Capital EUR +113 mn Fixed Assets 78% 77% ○ Increase in receivables due to
Slide 7: Capex in 2024 Significantly Reduced
CAPEX IN 2024 SIGNIFICANTLY REDUCED TO SLIGHTLY BELOW EUR 550 MILLION Investment, in EUR million 1,316 Capex 2024 mainly for FabNext 1,074 < 550 426 Increased focus on capex 188 management Q1: 173 2020 2021 2022 2023 2024e Chart not to scale 7 Q1 2024 Conference Call Presentation © Siltronic AG
Slide 8: Net Financial Debt Impacted by High Investments
NET FINANCIAL DEBT IMPACTED BY HIGH INVESTMENTS Net Financial Debt, in EUR million Net financial debt -356 Operating Dec 31, 2023 cash flow burdened by Operating increase in trade 62 cash flow payables Change in Payments for -199 net financial position capex, net1 EUR -145 mn2 Others -8 Capex CF o p
Slide 9: Options for Refinancing Under Evaluation
OPTIONS FOR REFINANCING UNDER EVALUATION Debt financing instruments, in EUR million Syn loan first part drawn in Q1 Syn loan SGP (EUR 50 mn) 330 311 Fixed loans, drawn Variable loans, drawn 1,200 Syn loan (partly) not drawn yet Syn loan 50 EIB Refinancing SSD 200 options under 105 evaluation, no ca
Slide 10: Outlook 2024
OUTLOOK 2024 transition year to mid-term growth 10 Q1 2024 Conference Call Presentation © Siltronic AG
Slide 11: End Market Growth Negatively Overcompensated by Excess Inventory
END MARKET GROWTH NEGATIVELY OVERCOMPENSATED BY EXCESS INVENTORY Consumption of wafers by end use Growth in demand for wafer area 2023, in % 2024 vs. 2023, in % Server mostly driven by Smartphones 22 4 Generative AI PCs 14 1 Server 13 18 Smartphones Industrial 16 -2 soft recovery Automotive 17 10 Ot
Slide 12: Total Inventories for Memory and Logic Peaked in 2023
TOTAL INVENTORIES FOR MEMORY AND LOGIC PEAKED IN 2023, POWER FURTHER INCREASING Semiconductor inventories per sector2 Inventory levels decreasing slowly; Memory High End DRAM improved due to HBM, Other DRAM and NAND elevated Customers vary significantly – some still strongly elevated Different inven
Slide 13: Overall CAGR of 4-5% Expected, Highest Growth in 300 mm
OVERALL CAGR OF 4-5% EXPECTED HIGHEST GROWTH IN 300 mm Development of total wafer demand per diameter in mn 300 mm equivalents per month1 and CAGR per diameter in %2 9 8 +6% 300 mm strong growth 7 6 5 4 200 mm +1% slightly increasing 3 6% 2 1 0 2010 2013 2016 2019 20222023 2023 2025 2023 2028 300 mm
Slide 14: Closure of Small Diameter Production
CLOSURE OF SMALL DIAMETER PRODUCTION 1968 until now Future focus on SD Closure in the course of 2025 1968 1998 SD Wafer 300 mm wafer production pilot fabrication starts in starts in Burghausen Burghausen <150 300 200 300 Accretive mm mm mm mm EBITDA impact 200 <150 mm mm 1984 Focus 2024 First 200 mm
Slide 15: Outlook 2024 – A Transition Year
OUTLOOK 2024 – A TRANSITION YEAR Sales EBIT Roughly -10 percent y-o-y Significant decline EBITDA Margin Capex Between 21 and 25 percent Slightly below EUR 550 mn Depreciation Net cash flow Below EUR 300 mn Above 2023 but still significantly negative 15 Q1 2024 Conference Call Presentation © Siltroni
Slide 16: Q&A
Q&A 16 Q1 2024 Conference Call Presentation © Siltronic AG
Slide 17: Financial Calendar and Events; Investor Relations Contacts
Financial Calendar and Events May 13, 2024 May 15, 2024 May 22-23, 2024 June 5-6, 2024 July 25, 2024 Annual General Stifel US Roadshow & Berenberg Baader Q2 2024 results Meeting German Corporate European Conference, Suisse Roadshow Conference, Frankfurt New York, USA Investor Relations Contacts Vere