Slide 1: Siltronic AG Q3 2022 Conference Call Presentation
Siltronic AG Q3 2022 Conference Call Presentation October 28, 2022 © Siltronic AG
Slide 2: Strong market demand and high fab utilization drive strong sales and results in Q3 2022
Strong market demand and high fab utilization drive strong sales and results in Q3 2022 Significant increase in sales q-o-q and y-o-y Smooth operational performance allowed for small volume increase in Q3 Strong US Dollar pushes sales and ASP, but contributes to cost increases Major investme
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 Auto unit sales still below demand due to supply chain disruptions 5G continues to drive content growth (modem and DRAM) Increasing electronic func
Slide 4: Expansion projects are proceeding according to plan
Expansion projects are proceeding according to plan FabNext in Singapore Project timeline and budget on track Customer LTAs with pre-pay in place for 80 % of FabNext capacity throughout the ramp phase First shipments to customers in early 2024 New crystal pulling hall in Freiberg Project is proceedi
Slide 5: Highlights: Financial figures Q3 2022
Highlights: Financial figures Q3 2022 Sales − EUR 474.0 mn (Q2 2022: EUR 442.2 mn) EBITDA − EUR 170.5 mn (Q2 2022: EUR 147.0 mn) − EBITDA margin: 36.0% (Q2 2022: 33.2%) EBIT − EUR 124.3 mn (Q2 2022: EUR 102.8 mn) − EBIT margin: 26.2% (Q2 2022: 23.2%) CapEx − EUR 226.0 mn (Q2 2022: EUR 165.0 mn) Net
Slide 6: Financials Q3 2022
Financials Q3 2022 © Siltronic AG
Slide 7: Strong sales growth driven by rising ASP and favourable FX
Strong sales growth driven by rising ASP and favourable FX Sales, in EUR m Ø FX rates Q3 Q4 Q1/22 Q2 Q3 EUR / 1.18 1.14 1.12 1.07 1.01 USD EUR / JPY 130 130 130 136 139 Comments 371.6 376.6 417.0 442.2 474.0 Wafer area sold slightly up q-o-q Sales prices slightly up q-o-q, significantly up y-o-y
Slide 8: Higher COGS due to FX and inflation
Higher COGS due to FX and inflation Cost of sales, in mn EUR Gross profit, in EUR mn / Gross margin, in % 34.1 32.8 34.6 32.0 32.5 281.4 297.1 309.8 252.6 248.2 135.6 145.1 164.2 119.0 128.4 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Selling, R&D and admin expens
Slide 9: High US-Dollar and Japanese Yen exposure
High US-Dollar and Japanese Yen exposure FX exposure, in % FX sensitivity ~ 7% Sales EBITDA ~ 13% Unhedged 1 USD-/SGD-cent change ~ EUR 13 mn ~ EUR 10 mn ~ 62% ~ 80% 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 Stron
Slide 10: 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 44.6 36.0 33.1 33.2 143.7 186.0 147.0 170.5 122.9 -39.0 -34.5 -42.3 -44.2 -46.2 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 124.2 131.3 135.9 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 202
Slide 11: Net profit of EUR 109.9 million in Q3 2022
Net profit of EUR 109.9 million in Q3 2022 Net profit, in EUR mn EPS, in EUR 2.15 2.79 3.47 2.66 3.32 93.7 114.8 91.1 109.9 73.6 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Dividend payment, in EUR mn Comments Net profit of EUR 109.9 mn in Q3 2022; thereof EUR 9
Slide 12: 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 63 61 65 61 46 263.7 277.9 224.5 246.2 209.5 240.2 230.2 193.7 277.2 290.
Slide 13: Equity exceeds EUR 1.9 bn, with equity ratio of 57%
Equity exceeds EUR 1.9 bn, with equity ratio of 57% Equity, in EUR mn Provisions for pensions, Financial assets and debt, Equity ratio, in % in EUR mn in EUR mn 56.7 56.8 54.9 53.7 55.9 Interest rates IFRS Net financial assets, in EUR mn 2.42% 2.51% 3.22% 4.16% 4.85% USA 605 573 709 597 553 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 including prepayments 273.7 197.0 92.6 100.5 88.5 191.1 122.8 150.0 1.6 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 -9.8 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q
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: Three pillars of debt financing for capex projects including FabNext
Three 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$ Local bilateral loan in Singapore Dollar denomination S$ 450 mn, draw-down in 2022 and 2023 € European Investment Bank bilateral loan € 200 m, dr
Slide 17: Outlook 2022
Outlook 2022 © Siltronic AG
Slide 18: Siltronic is focused on growing 300 mm and attractive 200 mm business
Siltronic is focused on growing 300 mm and attractive 200 mm business. Market growth continued in Q3. Development of Total Wafer Demand per Diameter, in mn 300 mm equivalents per month 9 Strong demand 300 mm & growth 8 7 200 mm 6 SD (pol/epi) 5 4 Stable & 3 attractive 2 1 Mid-term decline 0 2010 201
Slide 19: Outlook
Outlook Tailwind from FX continues to drive sales and results Softness in some end markets lead to risk of inventory corrections in some segments Long term growth drivers are intact Structural shortage for 300 mm wafers is expected to persist Project to become independent of gas supply at
Slide 20: Siltronic Outlook 2022 (as of October 28, 2022)
Siltronic Outlook 2022 (as of October 28, 2022) Sales − 26 to 30 percent increase EBITDA margin − increase to 36 to 38 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
Slide 21: 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 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
Slide 23: Siltronic AG address
SILTRONIC AG | Einsteinstrasse 81677 Munich 172 Germany © Siltronic AG