Slide 1: Siltronic AG Q2 2022 Conference Call Presentation
Siltronic AG Q2 2022 Conference Call Presentation July 29, 2022 © Siltronic AG
Slide 2: Strong market demand and high fab utilization drive strong sales and results in H1 2022
Strong market demand and high fab utilization drive strong sales and results in H1 2022 Significant increase in sales and q-o-q and y-o-y Earnings excluding one-offs at a record high Increase is driven by strong US Dollar and price increases Smooth operational performance allowed for small v
Slide 3: Growing uncertainty in some end markets without impact on wafer demand so far
Growing uncertainty in some end markets without impact on wafer demand so far Smartphones Industry / Auto Unit softness due to macro uncertainty and Auto still impacted by supply chain disruptions, China lockdowns unit sales well below demand Ongoing trend to more cameras and Increasing elec
Slide 4: Highlights: Financial figures Q2 2022
Highlights: Financial figures Q2 2022 Sales − EUR 442.2 mn (Q1 2022: EUR 417.0 mn) EBITDA − EUR 147.0 mn (Q1 2022: EUR 186.0 mn) − EBITDA margin: 33.2% (Q1 2022: 44.6%) EBIT − EUR 102.8 mn (Q1 2022: EUR 143.7 mn) − EBIT margin: 23.2% (Q1 2022: 34.5%) CapEx − EUR 165.0 mn (Q1 2022: EUR 205.7 mn) Net
Slide 5: Financials Q2 2022
Financials Q2 2022 © Siltronic AG
Slide 6: Strong sales growth driven by rising ASP and favorable FX
Strong sales growth driven by rising ASP and favorable FX Sales, in EUR m Ø FX rates Q2/21 Q3 Q4 Q1/22 Q2 EUR / 1.21 1.18 1.14 1.12 1.07 USD EUR / JPY 132 130 130 130 136 442.2 Comments 417.0 371.6 376.6 341.1 Wafer area sold slightly up q-o-q Sales prices slightly up q-o-q, significantly up y-o
Slide 7: Higher COGS due to FX and inflation
Higher COGS due to FX and inflation Cost of sales, in EUR mn Gross profit, in EUR mn / Gross margin, in % 32.0 34.1 32.5 32.8 30.8 281.4 297.1 235.9 252.6 248.2 119.0 128.4 135.6 145.1 105.2 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Selling, R&D and admin expens
Slide 8: High US-Dollar and Japanese Yen exposure
High US-Dollar and Japanese Yen exposure FX exposure, in % FX sensitivity ~ 8% Sales EBITDA ~ 13% Unhedged 1 USD-/SGD-cent change ~ EUR 12.5 mn ~ EUR 9.0 mn ~ 63% ~ 79% 1 JPY change ~ EUR 1.7 mn ~ EUR 1.4 mn Sales Costs USD SGD JPY EUR Other currency effects (mostly hedging), Comments in EUR mn 5
Slide 9: Strong EBITDA, supported by FX and higher sales prices
Strong EBITDA, supported by FX and higher sales prices EBITDA, in EUR mn / EBITDA margin, in % Depreciation, in EUR mn 38.2 31.7 33.1 44.6 33.2 186.0 122.9 143.7 147.0 108.0 -38.4 -39.0 -34.5 -42.3 -44.2 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 110.8 124.2 131.3 135.9 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 10: Net profit of EUR 91.1 million in Q2 2022
Net profit of EUR 91.1 million in Q2 2022 Net profit, in EUR mn EPS, in EUR 3.47 114.8 2.79 2.66 93.7 91.1 1.83 2.15 73.6 64.0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Dividend payment, in EUR mn Comments Net profit of EUR 205.8 mn in H1 2022; thereof EUR 184
Slide 11: Working capital and trade liabilities show variations due to high Capex projects
Working capital and trade liabilities show variations due to high Capex projects Working capital, in EUR mn, Inventories and contract assets, in EUR mn Working capital ratio to quarterly sales, in % Inventories Contract assets 61 63 68 65 46 263.7 246.2 209.5 224.5 199.0 277.2 232.4 240.2 230.2 193.
Slide 12: Equity exceeds EUR 1.8 bn, with equity ratio of 57%
Equity exceeds EUR 1.8 bn, with equity ratio of 57% Equity, in EUR mn Provisions for pensions, (Net) financial assets, Equity ratio, in % in EUR mn in EUR mn 56.7 54.0 54.9 53.7 55.9 Interest rates IFRS USA 2.39% 2.42% 2.51% 3.22% 4.16% Germany 1.14% 1.19% 1.23% 1.86% 3.30% 897 1811 1575 300 loan 13
Slide 13: Pension reserves decreased mainly due to higher IFRS interest rates
Pension reserves decreased mainly due to higher IFRS interest rates DBO and pension reserves, in EUR mn Comment 880 769 DBO of EUR 880 mn - assets of EUR 769 mn = USA EUR 112 mn mostly funded 121 4.16% 108 IFRS interest uses bond yields only, assets include bonds, equity, real estate and Germany
Slide 14: Net cash flow significantly negative due to ongoing invest in expansion projects
Net cash flow significantly negative due to ongoing invest in expansion projects Operating cash flow (OCF), in EUR mn Prepayments net (PP), in EUR mn 273.7 197.0 191.1 104.7 122.8 10.9 92.6 100,5 88.5 1.6 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 CF Capex, in EU
Slide 15: High CAPEX related to expansion projects will increase in H2
High CAPEX related to expansion projects will increase in H2. Investment, in EUR m Comments Capex guidance 2022: EUR 1,100 mn two thirds of capex for FabNext 300 mm epi capacity capabilities for future design rules expansion of crystal pulling hall in Freiberg Capex in H2 will be signifi
Slide 16: Outlook 2022
Outlook 2022 © Siltronic AG
Slide 17: Outlook
Outlook Macro uncertainties as a potential risk to end market demand, but so far no foreseeable change in customer order behavior for wafers Tailwind from FX continues to drive sales and results Long term growth drivers are in tact Structural shortage for 300 mm wafers is expected to persist
Slide 18: Siltronic's growth strategy is aligned with global demand growth
Siltronic’s growth strategy is aligned with global demand growth Expected Global Silicon Wafer Area Demand Silicon demand growth in advanced in mn inch² technologies CAGR +7% Innovation to keep top position +6% in leading-edge technology 16.000 12.000 Efficiency programs and cost roadmaps 8.000 Smoo
Slide 19: Siltronic Outlook 2022 (as of July 29, 2022)
Siltronic Outlook 2022 (as of July 29, 2022) Sales − 21 to 27 percent increase EBITDA margin − increase to 34 to 37 percent (incl. termination fee) Depreciation − around EUR 185 mn EBIT − significant increase Tax rate − between 10 to 15 percent CapEx − around EUR 1,100 mn (approx. 2/3 for FabNext) N
Slide 20: Contact and Additional Information
Contact and Additional Information Issuer and Contact Additional Information Siltronic AG ISIN: DE000WAF3001 Einsteinstraße 172 WKN: WAF300 D-81677 München Deutsche Börse: WAF Listing: Frankfurt Stock Exchange Investor Relations: Prime Standard Dr. Rupert Krautbauer email: investor.relations@siltron
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 | Einsteinstrasse 81677 Munich 172 Germany © Siltronic AG