Siltronic Ag · XETR:WAF

Siltronic — Q2 2018 Earnings Presentation

23 slides from Siltronic's earnings presentation, Jul 25, 2018

Slide 3: Highlights Q2/2018: Financials
Highlights Q2/2018: Financials Sales EUR 361.3m (Q1/2018: EUR 327.4m) EBITDA EUR 146.0m (Q1/2018: EUR 122.3m) EBITDA margin 40.4% (Q1/2018: 37.4%) EBIT EUR 124.1m (Q1/2018: EUR 96.6m) ROCE 64.2% (Q1/2018: 49.3%) CapEx EUR 45.2m (Q1/2018: EUR 33.4m) Net cash flow EUR 67.1m (Q1/2018: EUR 112.4m) Net f
Slide 4: Market highlights Q2/2018
Market highlights Q2/2018 Semiconductors  Semi units showed positive development in April (+8.1% YoY) after some volatility in previous months while silicon area continues to be on a high level. Semi revenues also went up significantly (+20.2% YoY), especially due to strong ASP increase Silicon waf
Slide 5: IHS Markit forecasts 5.4% growth for silicon area in 2018
IHS Markit forecasts 5.4% growth for silicon area in 2018 with broad based growth in a wide range of applications. Wafer Demand 2000 / 2017, in bn cm² 2000 2017 Growth 2018 / 2017, in % Total Market 33.6 72.5 5.4% Mobile / Smartphones 2.5 19.2 7% Desktop, Notebook & Server PC 9.4 11.3 -2% Industrial
Slide 6: Smartphone growth slowing, however silicon content increasing
Smartphone growth slowing, however silicon content increasing with more memory and other features Smartphone production Wafer area in smartphones 1500 15% 20 15% 1000 10% 10% 10 500 5% 5% 0 0% 0 0% 2015 2016 2017 RF 2018 2015 2016 2017 RF 2018 mn units YoY growth in % bn cm2 YoY growth in % Source:
Slide 7: Car shipments growing slowly, silicon content in automotive estimated to grow by 7%
Car shipments growing slowly, silicon content in automotive estimated to grow by 7% (CAGR 2017-2022) Worldwide passenger car shipments Wafer area in automotive 80 10% 10% 9000 6000 40 5% 5% 3000 0 0% 0 0% 2017 RF RF RF RF RF 2017 RF RF RF RF RF 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 mn un
Slide 8: 300 mm demand likely to grow by around 2m wafer/month between 2017 and 2020
300 mm demand likely to grow by around 2m wafer/month between 2017 and 2020 Estimated growth in 300 mm wafer starts 2017 - 2020 ~2000 kw/m Comment  ~12% CAGR of estimated 300 Fab extension outside China mm demand growth between 2017 and 2020 1090  Most capacity added outside China New fabs outside
Slide 9: 200 mm demand growth forecast of 3% CAGR not attractive enough
200 mm demand growth forecast of 3% CAGR 2017-2020 not attractive enough to consider major investments 200 mm demand by category, in k/w per month 6000 Comment  200 mm demand expected to increase by 3% CAGR (2017-2020), according to IHS Markit.  Less than 1,000k wafer/month capacity expansions unt
Slide 11: Q2 sales 10% higher than Q1
Q2 sales 10% higher than Q1 Sales, in EUR million Comment  Positive 361,3  Wafer area sold on very high 328,1 327,4 level slightly up q-o-q 308,1 283,1  Significant ASP increase y-o-y  Solid ASP increase q-o-q  Further ASP increases expected in 2018  Tailwind from USD q-o-q  Negative  Headwi
Slide 12: EBITDA and EBITDA-margin further up
EBITDA and EBITDA-margin further up EBITDA margin in %; EBITDA in EUR million Comment  Positive 40.4  Significantly higher ASP 36.8 37.4 y-o-y 34.6  Further price increases q-o-q 25.7  Cost of sales per wafer area slightly decreased y-o-y 146.0 120.9 122.3  Tailwind from USD q-o-q 106.5 72.7 
Slide 13: Strong growth of net profit
Strong growth of net profit Result and income tax, in EUR million Comment -24.2  Net profit in Q2/2018 20% up vs. Q1/2018 -12.3  Higher ASPs and lower depreciation contributed  EUR 24.5m expenses for 122.2 effective taxes in Q2/2018 94.3 98.0 82.0 Q1/2018 Q2/2018 Result before income tax Income t
Slide 14: Equity further improved, stable equity ratio of ~47%
Equity further improved, stable equity ratio of ~47% Balance sheet, in EUR million Jun 30, Dec 31, Comments Equity and Jun 30, Dec 31, Comments Assets 2018 2017 Jun 30, 2018 liabilities 2018 2017 Jun 30, 2018 Non-current 585.1 546.6 Equity 720.1 637.9 PP&E 546.6 513.3 Siltronic 709.3 637.3 22 intang
Slide 15: Pension provision relatively stable q-o-q
Pension provision relatively stable q-o-q Pension provision, in EUR million 381 389 367 Comment 345 341  Changes in interest rates influence evaluation of pension provision  Change in interest rates directly reflected in equity (OCI) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 interest rates IFRS  US
Slide 16: Net financial assets substantially increased
Net financial assets substantially increased Net financial assets, in EUR million Comment 603 491  Dividend payment of EUR 75m in April 2018  Prepayments of EUR 116m (net) received in Q2 342 295 241 Siltronic AG – Q2/2018 Results July 25, 2018 16 of 23
Slide 17: Capex 2018: slightly up to EUR 260m to EUR 280m
Capex 2018: slightly up to EUR 260m to EUR 280m Investment, in EUR million Comments ~260-280 ~20  Capex of EUR ~140m for 70k wafers/month over 2 years Prepayments for 2020 ~50-70  Capex in 2018 includes new crystal pulling hall capacity increase in Singapore to create sufficient crystal pulling Ca
Slide 18: High net cash flow in the first two quarters
High net cash flow in the first two quarters Capex and NCF, in EUR million Comments  Net cash flow of EUR 67.1m in Q2 201  Low capex in Q1 and Q2 112.4  Higher tax payments in Q2  Q1 high due to reversal of Q4 61.4 67.1 60.6 effects 41,8 45.2 33.4 25.5 16.9 -4,5 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q
Slide 20: Siltronic Outlook for 2018 (as of July 23, 2018)
Siltronic Outlook for 2018 (as of July 23, 2018) EBITDA margin approximately 40% update ROCE clearly higher than in 2017 Net cash flow clearly higher than in 2017 Sales close to EUR 1.4bn, depending on FX effects update R&D approx. 5% of sales Cost position negative effect on savings potential due t
Slide 21: 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 22: 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

Siltronic — Q2 2018 Earnings Presentation on 6ix

Siltronic — Q2 2018 Earnings Presentation

Slide 1: Siltronic AG Q2/2018 Results

Slide 2: Market Update

Slide 3: Highlights Q2/2018: Financials

Slide 4: Market highlights Q2/2018

Slide 5: IHS Markit forecasts 5.4% growth for silicon area in 2018

Slide 6: Smartphone growth slowing, however silicon content increasing

Slide 7: Car shipments growing slowly, silicon content in automotive estimated to grow by 7%

Slide 8: 300 mm demand likely to grow by around 2m wafer/month between 2017 and 2020

Slide 9: 200 mm demand growth forecast of 3% CAGR not attractive enough

Slide 10: Financials Q2/2018

Slide 11: Q2 sales 10% higher than Q1

Slide 12: EBITDA and EBITDA-margin further up

Slide 13: Strong growth of net profit

Slide 14: Equity further improved, stable equity ratio of ~47%

Slide 15: Pension provision relatively stable q-o-q

Slide 16: Net financial assets substantially increased

Slide 17: Capex 2018: slightly up to EUR 260m to EUR 280m

Slide 18: High net cash flow in the first two quarters

Slide 19: Outlook

Slide 20: Siltronic Outlook for 2018 (as of July 23, 2018)

Slide 21: Contact and Additional Information

Slide 22: Disclaimer

Slide 23: Siltronic AG