Siltronic Ag · XETR:WAF

Siltronic — Q1 2023 Earnings Presentation

37 slides from Siltronic's earnings presentation, May 11, 2023

  1. Slide 1: Siltronic AG Investor Presentation – Q1 2023

    Siltronic AG Investor Presentation – Q1 2023 May 11, 2023 © Siltronic AG

  2. Slide 2: Market overview

    Market overview © Siltronic AG

  3. Slide 3: Electronics value chain continued to grow in 2022

    Electronics value chain continued to grow in 2022 Increasing demand for electronic devices and new applications drive semiconductor growth, which in turn fuels silicon demand Electronics USD 1,855 bn Semiconductors USD 562 bn Semiconductor silicon wafers USD 13.8 bn Silicon for electronic applicatio

  4. Slide 4: New applications for electronic devices continue to drive silicon demand

    New applications for electronic devices and the infrastructure to support them continue to drive silicon demand Current growth drivers include Data explosion: connected devices, data transport and storage, big data, logic/AI Power: renewable energy, smart grid, battery chargers Automotive: ADAS, inf

  5. Slide 5: Consolidated market with 5 major wafer manufacturers

    Consolidated market with 5 major wafer manufacturers Top 5 wafer producers serve up to 90% of the market across all diameters 14% SK Siltron Siltronic Shin Etsu Sumco GlobalWafers Source: Siltronic Marketing Siltronic AG – Investor Presentation Q1 2023 May 11, 2023 5

  6. Slide 6: Company overview

    Company overview © Siltronic AG

  7. Slide 7: Siltronic at a glance

    Siltronic at a glance Key financial figures 2022  Sales: EUR 1,805.3 million  EBITDA: EUR 671.6 million  EBITDA margin: 37.2%  Net cashflow: EUR -395.4 million  Net financial assets: EUR 373.6 million 4 world-class production sites ~ 4,500 employees global scale and reach 50+ years of history i

  8. Slide 8: International manufacturing network supports strong market position and business focus

    International manufacturing network supports strong market position and business focus Freiberg CP* 300 mm 200 Burghausen Portland mm SD* SD* Singapore Central R&D hub in Burghausen 200 High-volume 300 mm fabs in SSW CP* 300 mm SSP mm Germany and Singapore Singapore fabs among the world’s newest & l

  9. Slide 9: A broad product portfolio covers standard and leading-edge requirements

    A broad product portfolio covers standard and leading-edge requirements of the customers Portfolio ~65% Portfolio ~34% ø 300 mm ø 125 – 200 mm + SD Process CZ Process CZ + FZ Main Applications Products Standard products Logic, Analog, Discretes, Double side polished wafer Polished wafer, Epitaxial w

  10. Slide 10: Siltronic is focused on growing 300 mm and attractive 200 mm business

    Siltronic is focused on growing 300 mm (6% in 2022) and attractive 200 mm business Development of Total Wafer Demand per Diameter, in mn 300 mm equivalents per month 9 Strong demand 300 mm CAGR assumption 8 of 6%1 7 200 mm 6 SD (pol/epi) CAGR: 6.8% 5 4 Stable & 3 attractive 2 1 Mid-term decline 0 20

  11. Slide 11: Top technology position complemented with a high level of quality

    Top technology position complemented with a high level of quality A leading position in wafer technology  Commercialization of 3 nm node started in 2022 >400 R&D employees worldwide  Development of 2 nm node started in 2021 (commercialization expected to start in 2024) Approximately 1,890 pending

  12. Slide 12: FabNext in Singapore fully on track

    FabNext in Singapore fully on track Siltronic AG – Investor Presentation Q1 2023 May 11, 2023 12

  13. Slide 13: Cost-competitiveness a pre-requisite in the wafer industry

    Cost-competitiveness a pre-requisite in the wafer industry Major cost items Continuous cost roadmaps to counter unit cost increases Labor Productivity improvement Depreciation Supply Automation savings Supplies Energy Energy Recycling efficiency Polysilicon Siltronic AG – Investor Presentation Q1 20

  14. Slide 14: Our objectives and values

    Our objectives and values Partners Together with our customers and suppliers we build a winning network to create mutual, Quality enduring value We are committed to Capabilities perfection in processes, products, Be one generation ahead – we enable organization and innovation at our cooperation in o

  15. Slide 15: Strategy based on four pillars

    Strategy based on four pillars Continuously increasing the value for our stakeholders Grow Ensure Improve Execute by optimizing top technology financial cost reduction product mix and position & performance & roadmaps & increase highest quality cash flow debottlenecking capacities when concepts need

  16. Slide 16: Overview Financials

    Overview Financials Adjusted financial figures (EUR mn) 2018 2019 2020 2021 2022 Sales 1,456.7 1,270.4 1,207.1 1,405.4 1,805.3 EBIT 497.7 298.3 192.2 316.9 495.6 EBIT margin in % 34.2 23.5 15.9 22.5 27.5 EBITDA 589.3 408.7 331.9 466.4 671.6 EBITDA margin in % 40.5 32.2 27.5 33.2 37.2 Earnings per sh

  17. Slide 17: Key investment highlights

    Key investment highlights Market Position Strategy  Strong market  Best-in-class position in the technology and semiconductor and quality wafer industry Customers Financials  Supplier to all top 20  Profitable sales silicon wafer increase and on- consumers going efficiency improvement Products M

  18. Slide 18: Corporate Social Responsibility

    Corporate Social Responsibility © Siltronic AG

  19. Slide 19: Siltronic Climate Action Program on track

    Siltronic Climate Action Program on track – 10% reduction of Scope 1 and 2 emissions in 2022 Climate Action Program CSR Targets until 2030 Siltronic‘s commitment to Science Based Target Reduce specific energy consumption initiative to limit global warming to 1.5°C: by 20%1  Goal until 2030: 50% CO2

  20. Slide 20: Siltronic enables technologies for a sustainable future

    Siltronic enables technologies for a sustainable future Resource efficency Sustainable mobility Clean energy Innovation driver for Reduction of transport emissions Wafer as a foundation for environmentally friendly and and carbon footprint to achieve semiconductors enable clean, resource-saving tech

  21. Slide 21: Financials Q1 2023

    Financials Q1 2023 © Siltronic AG

  22. Slide 22: Sales decreased due to weaker demand and a stronger Euro

    Sales decreased due to weaker demand and a stronger Euro Sales, in EUR mn Ø FX rates Q1/22 Q2 Q3 Q4 Q1/23 EUR/USD 1.12 1.07 1.01 1.02 1.07 EUR/JPY 130 138 139 144 142 Comments 417.0 442.2 474.0 472.1 404.4  Wafer area sold down q-o-q  Unfavorable FX rate for EUR/USD q-o-q Q1 22 Q2 22 Q3 22 Q4 22 Q

  23. Slide 23: Gross profit decreased due to lower wafer area sold

    Gross profit decreased due to lower wafer area sold Cost of sales, in EUR mn Gross profit, in EUR mn / Gross margin, in % 36.1 32.5 32.8 34.6 28.7 281,4 297,1 309,8 301,6 288,2 135.6 145.1 164.2 170.5 116.2 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Selling, R&D

  24. Slide 24: Strengthening of the Euro in Q1 2023 vs. Q4 2022

    Strengthening of the Euro in Q1 2023 vs. Q4 2022 FX exposure, in % FX sensitivity ~ 9% Sales EBITDA ~ 14% Unhedged 1 USD-/SGD-cent change ~ EUR 11 mn ~ EUR 7 mn ~ 59% ~ 77% 1 JPY change ~ EUR 1.5 mn ~ EUR 1.2 mn Sales Costs USD SGD JPY EUR Other currency effects (mostly hedging), Comments 05 in EUR

  25. Slide 25: EBITDA margin of 31 percent in Q1 2023

    EBITDA margin of 31 percent in Q1 2023 EBITDA, in EUR mn / EBITDA margin, in % Depreciation, in EUR mn 44.6 36.0 35.6 33.2 31.0 186.0 147.0 170.5 168.1 125.2 -42.3 -44.2 -46.2 -43.3 -47.4 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 136 EBIT, in EUR mn / EBIT margi

  26. Slide 26: Net profit of EUR 73 million in Q1 2023

    Net profit of EUR 73 million in Q1 2023 Net profit, in EUR mn EPS, in EUR 114.8 91.1 109.9 118.6 72.5 3,47 2,66 3,32 3,56 2,20 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Dividend payment, in EUR mn Comments  Net profit of EUR 73 mn in Q1 2023; thereof EUR 66 mn

  27. Slide 27: Equity exceeds EUR 2.0 bn

    Equity exceeds EUR 2.0 bn Equity, in EUR mn Provisions for pensions, Financial assets and debt, Equity ratio, in % in EUR mn in EUR mn 55.9 56.7 56.8 Net financial assets, in EUR mn 51.0 51.1 709 597 553 374 284 Interest rates IFRS USA 3.22% 4.16% 4.85% 4.90% 4.68% Germany 1.86% 3.30% 3.69% 3.72% 3.

  28. Slide 28: Net cash flow negative due to high Capex

    Net cash flow negative due to high Capex Operating cash flow (OCF), in EUR mn Prepayments net (PP), in EUR mn including prepayments 273.7 150.0 100.5 88.5 98,2 191.1 189.8 146.7 21,8 -9,8 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 CF Capex, in EUR mn Net cash flo

  29. Slide 29: Major Capex in 2023 mostly for FabNext

    Major Capex in 2023 mostly for FabNext Investment, in EUR mn Comments  Capex 2023 slightly above 2022  Mostly for FabNext  Completion of Freiberg crystal pulling hall  Capabilities for future design rules  Capex 2024 roughly down by half  Depreciation will almost double in 2024  Conservative

  30. Slide 30: Four pillars of debt financing for capex projects including FabNext

    Four pillars of debt financing for capex projects including FabNext € ESG-linked promissory note loan € 300 mn with terms of five, seven and ten years S$ Bilateral loan in Singapore Dollar denomination S$ 450 mn, draw-down in 2022 and 2023 € European Investment Bank bilateral loan € 200 mn, drawn-do

  31. Slide 31: Outlook 2023

    Outlook 2023 © Siltronic AG

  32. Slide 32: The end markets are expected to stagnate in 2023

    The end markets are expected to stagnate in 2023 (excluding inventory reductions) Consumption of wafers by Wafer demand growth 2023 end use 2022 minimal growth Smartphones 22% 0% PCs 17% -17% Servers 11% 15% Industrial 16% 2% Automotive 14% 17% Others 20% 1% Source: Siltronic Siltronic AG – Investor

  33. Slide 33: Inventory reductions anticipated to reduce wafer demand by more than 10%

    Inventory reductions at multiple levels of the value chain are anticipated to reduce wafer demand by more than 10% y-o-y Composition of growth drivers for wafer market, in % Inventory Reduction at >10% Growth of end markets customers and OEMs 2023E Source: Siltronic Siltronic AG – Investor Presentat

  34. Slide 34: Siltronic Outlook 2023 (as of May 11, 2023)

    Siltronic Outlook 2023 (as of May 11, 2023) 2023 Outlook Q2 Outlook Sales significantly below 2022 Sales comparable to Q1 EBITDA margin significantly below 2022 EBITDA margin 27 – 31 % Depreciation around EUR 220 mn No improvement in H2 expected EBIT significant decrease Tax rate mid single-digit %-

  35. Slide 35: 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 Verena Stütze E-mail: investor.relations@siltronic.com

  36. Slide 36: 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

  37. Slide 37: SILTRONIC AG

    SILTRONIC AG | Einsteinstr. 81677 Munich 172 Germany © Siltronic AG

Siltronic — Q1 2023 Earnings Presentation on 6ix