Slide 1: Siltronic AG Q2 2019 Conference Call Presentation
Siltronic AG Q2 2019 Conference Call Presentation July 25, 2019 © Siltronic AG
Slide 2: Highlights Q2 2019: Financials
Highlights Q2 2019: Financials Sales EUR 311.8m (Q1 2019: EUR 354.4m) EBITDA EUR 100.0m (Q1 2019: EUR 127.2m) EBITDA margin: 32.1% (Q1 2019: 35.9%) EBIT EUR 74.6m (Q1 2019: EUR 103.4m) EBIT margin: 23.9% (Q1 2019: 29.2%) Capex EUR 105.1m (Q1 2019: EUR 72.8m) Net cash flow EUR 0.4m (Q1
Slide 3: Market Update
MARKET UPDATE © Siltronic AG
Slide 4: Market developments
Market developments End Markets 2019 Most end markets remain to be soft from a unit point of view in 2019, but as of today, content is still expected to grow in most end markets Silicon wafer market 2019 Q2 SEMI market was ~6.4 bn cm², -2.2% below Q1 19 average and -5.7% YoY Wafer demand Stron
Slide 5: Financials Q2 2019
FINANCIALS Q2 2019 © Siltronic AG
Slide 6: Sales development negatively impacted by lower wafer area demand
Sales development negatively impacted by lower wafer area demand Sales, in EUR million Ø FX rates Q2/18 Q3 Q4 Q1/19 Q2 EUR / USD 1.19 1.16 1.14 1.14 1.12 EUR / JPY 130 130 129 125 124 Comment Sales in Q2 down vs. Q1 as expected due to lower wafer area sold 379.8 388.1 ASP H1 2019 up compared to
Slide 7: Q2 2019 weak as expected due to lower wafer area demand and higher energy costs
Q2 2019 weak as expected due to lower wafer area demand and higher energy costs Cost of Sales, in EUR million Gross profit, in EUR million / Gross margin, in % 46.1 46.4 42.1 40.8 36.1 209.3 204.8 208.1 209.9 199.4 152.0 175.0 180.0 144.5 112.4 Q2 2018 Q3 Q4 Q1 2019 Q2 Q2 2018 Q3 Q4 Q1 2019 Q2 Other
Slide 8: High US-Dollar and Japanese Yen exposure
High US-Dollar and Japanese Yen exposure FX exposure, in % Sensitivity 1 USD-cent change ~ 10% ~ EUR 8.0 million sales ~ 25% exposure ~ EUR 6.5 million EBITDA unhedged ~ EUR 4.5 million EBITDA after hedging 1 JPY change ~65% ~ EUR 2.5 million sales ~ 65% ~ EUR 2.0 million EBITDA unhedged
Slide 9: Profitability affected by lower loading, higher energy costs and slightly increased depreciation
Profitability affected by lower loading, higher energy costs and slightly increased depreciation EBITDA, in EUR million / EBITDA margin, in % Depreciation, in EUR million 40.4 42.2 41.4 35.9 32.1 146.0 160.2 160.8 127.2 100.0 -21.9 -22.2 -21.9 -23.8 -25.4 Q2 2018 Q3 Q4 Q1 2019 Q2 Q2 2018 Q3 Q4 Q1 20
Slide 10: Net profit of EUR 156 million in H1 2019
Net profit of EUR 156 million in H1 2019 Net profit attributable to shareholders, EPS, in EUR in EUR million 3.53 3.25 105.8 97.5 3.04 91.3 2.68 80.3 1.98 59.4 Q2 2018 Q3 Q4 Q1 2019 Q2 Q2 2018 Q3 Q4 Q1 2019 Q2 Dividend payment, in EUR million Comment Net profit EUR 156.1m in H1 Tax rate down to
Slide 11: Working Capital further down
Working Capital further down Working capital, in EUR million, Inventories and contract assets, in EUR million Working capital ratio to last quarter sales, in % Inventories Contract assets 80% 68% 60% 59% 70% 56% 58% 60% 50% 40% 168.0 177.4 180.2 155.0 152.0 244.9 30% 227.8 227.7 199.4 182.4 20% 10%
Slide 12: Strong equity ratio and solid net financial assets
Strong equity ratio and solid net financial assets Equity, in EUR million Provisions for pensions, Net financial assets, Equity ratio, in % in EUR million in EUR million 50.4 48.4 48.4 46.6 43.4 Interest rates IFRS USA 3.99% 4.02% 4.08% 3.69% 3.37% Germany 2.00% 2.04% 1.98% 1.66% 1.29% 915.7 968.3 7
Slide 13: Pension reserves impacted by low IFRS interest rates
Pension reserves impacted by low IFRS interest rates, at 3% reserves would be EUR 200 million lower DBO and pension reserves, in EUR million Comment DBO of EUR 1,149 million – assets of 1,149 ~850 646 EUR 646 million = EUR 503 million USA mostly funded 147 3.37% 147 3.37% 107 Pension reserves @3
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 million Customer prepayments net (PP), in EUR million 231.2 165.4 115.7 131.1 80.7 79.1 18.7 4.4 Q2 2018 Q3 Q4 Q1 2019 Q2 -16.7 -16.3 Q2 2018 Q3 Q4 Q1 2019 Q2 CF Capex, in EUR million Net cash flow (NCF), in EUR m
Slide 15: Outlook
OUTLOOK © Siltronic AG
Slide 16: All investment to be finished as planned in 2019; Capex will come down in 2020
All investment to be finished as planned in 2019; Capex for capacity will come down in 2020 Investment, in EUR million Comments ~350e Prepayments for 2020 Capex 2019 capacity increase Capex crystal pulling around EUR 350 million with a strong hall 257 focus on capabilities and automation Capex f
Slide 17: Siltronic Outlook 2019 (as of July 23, 2019)
Siltronic Outlook 2019 (as of July 23, 2019) EBITDA margin between 30% and 35% EBIT significantly below 2018 Net cash flow clearly positive, approx. EUR 180m below 2018, with a subsequent significant increase in 2020 Sales depending on timing of market recovery and on FX effects around 10% t
Slide 18: Appendix
APPENDIX © Siltronic AG
Slide 19: 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 20: 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 21: Siltronic AG
SILTRONIC AG | Hanns-Seidel-Platz 81737 Munich 4 Germany © Siltronic AG