Slide 1: FY 2019 Conference Call Presentation
Siltronic AG FY 2019 Conference Call Presentation March 9, 2020 © Siltronic AG
Slide 2: 2019 second-best year in Siltronic's history despite slowdown in wafer demand
2019 second-best year in Siltronic’s history despite slowdown in wafer demand Q4 2019 comment Full year 2019 comment Sales in Q4 higher than expected due to Sales volume significantly down due to high business with customers which could not be inventories at customers, volume shifts under suppli
Slide 3: Highlights 2019: Financials
Highlights 2019: Financials Sales EUR 1,270.4m (2018: EUR 1,456.7m) EBITDA EUR 408.7m (2018: EUR 589.3m) EBITDA margin: 32.2% (2018: 40.5%) EBIT EUR 298.3m (2018: EUR 497.7m) EBIT margin: 23.5% (2018: 34.2%) Capex EUR 363.0m (2018: EUR 256.9m) Net cash flow EUR 81.3m (2018: EUR 240.4m)
Slide 4: Financials FY 2019
FINANCIALS FY 2019 © Siltronic AG
Slide 5: Sales development negatively impacted by lower wafer area sold
Sales development negatively impacted by lower wafer area sold Sales, in EUR m Ø FX rates Q4/18 Q1/19 Q2 Q3 Q4 EUR / 1.14 1.14 1.12 1.11 1.11 USD EUR / 129 125 124 119 120 JPY Comments Positive ASP in EUR slightly up y-o-y 388.1 Tailwind from USD y-o-y but only slightly 354.4 sequential change
Slide 6: Higher energy costs and depreciation burden cost of sales
Higher energy costs and depreciation burden cost of sales Cost of sales, in EUR m Gross profit, in EUR m / Gross margin, in % 46.4 40.8 36.1 34.6 31.8 208.1 209.9 199.4 196.1 207.4 180.0 144.5 112.4 103.7 96.9 Q4 2018 Q1 2019 Q2 Q3 Q4 Q4 2018 Q1 2019 Q2 Q3 Q4 Selling, R&D and admin expenses, in EUR
Slide 7: 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 8: Profitability affected by lower loading, higher energy costs and increased depreciation
Profitability affected by lower loading, higher energy costs and increased depreciation EBITDA, in EUR m / EBITDA margin, in % Depreciation, in EUR m 41.4 35.9 32.1 30.5 29.6 160.8 127.2 100.0 91.5 90.0 -21.9 -23.8 -25.4 -27.9 -33.3 Q4 2018 Q1 2019 Q2 Q3 Q4 Q4 2018 Q1 2019 Q2 Q3 Q4 EBIT, in EUR m /
Slide 9: Net profit of EUR 261 million
Net profit of EUR 261 million Net profit, in EUR m EPS, in EUR 106.0 3.25 87.6 2.68 68.5 59.5 1.98 1.65 45.4 1.21 Q4 2018 Q1 2019 Q2 Q3 Q4 Q4 2018 Q1 2019 Q2 Q3 Q4 Dividend payment, in EUR m Comments Net profit of EUR 261 million; thereof EUR 225.6 million attributable to Siltronic shareholders
Slide 10: Working capital down, high trade liabilities related to capex
Working capital down High trade liabilities related to capex Working capital, in EUR m, Inventories and contract assets, in EUR m Working capital ratio to quarterly sales, in % Inventories Contract assets 69 59 56 58 55 60 40 183.8 168.0 177.4 180.2 167.4 227.7 199.4 207.0 20 182.4 168.3 0 Dec 18 Ma
Slide 11: 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 50.4 48.4 47.8 43.4 42.4 Interest rates IFRS USA 4.08% 3.69% 3.37% 2.99% 2.98% Germany 1.98% 1.66% 1.29% 0,97% 1.24% 916 968 930 762 804 809 691 565
Slide 12: Pension reserves impacted by low IFRS interest rates
Pension reserves impacted by low IFRS interest rates DBO and pension reserves, in EUR m Comment 1,167 ~850 676 DBO of EUR 1,167 million – assets of EUR 676 million = EUR 492 million USA mostly funded 145 2,98% 147 3% Pension reserves @3% = DBO of EUR 117 ~850 million – assets EURO 676 million Ge
Slide 13: Capex 2020 significantly down vs. 2019
Capex 2020 significantly down vs. 2019 Investment, in EUR m Comment Capex 2019 EUR 363m with a strong focus on capabilities and automation and also on 300 mm expansion based on LTAs Capex 2020 363 Significantly down to around EUR 200m Capacity expansion projects to be completed 257 in Q1 ~
Slide 14: Strong net cash flow despite high payments for capex
Strong net cash flow despite high payments for capex Operating cash flow (OCF), in EUR m Customer prepayments net (PP), in EUR m 131.1 100.7 80.7 79.1 74.4 4.4 3.6 Q4 2018 Q1 2019 Q2 Q3 Q4 -16.7 -16.2 -15.5 Q4 2018 Q1 2019 Q2 Q3 Q4 CF Capex, in EUR m Net cash flow (NCF), in EUR m 80.8 0.4 8.9 -67.1
Slide 15: Outlook
OUTLOOK © Siltronic AG
Slide 16: Semi market still affected by high inventories but also some positive development (pre-corona view)
Semi market still affected by high inventories but also some positive development (pre-corona view) Logic develops better than anticipated Industry/Auto Growing foundry business doing better: ADAS Strong server growth (stable wafer traditional applications: demand) high inventories Invento
Slide 17: Underlying growth trend intact but muted start in 2020
Underlying growth trend intact but muted start in 2020 2020 challenges and opportunities Muted start in 2020 Wafer industry not fully loaded since 2019 Despite first positive news flow from semi companies elevated inventory levels, especially in memory, have to come down Upturn in wafer dema
Slide 18: Siltronic Outlook 2020 (as of March 4, 2020)
Siltronic Outlook 2020 (as of March 4, 2020) Before Covid-19 In case of further spread of Covid-19 Sales slightly below 2019 significantly below 2019 EBITDA margin slightly below 2019 significantly below 2019 Depreciation around EUR 140m around EUR 140m EBIT significantly below 2019 due to significa
Slide 19: Appendix
APPENDIX © Siltronic AG
Slide 20: 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 21: 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 22: Siltronic AG
SILTRONIC AG | Hanns-Seidel-Platz 81737 Munich 4 Germany © Siltronic AG