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Siltronic AG Earnings Release 2024
392_ip_2024-07-25_f3db3292-209e-40c6-8a08-4411877a0c99.pdf
Earnings Release
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(sitronic
Q2 2024
MANAGING ONGOING SOFT DEMAND WITH RESILIENCE
Dr. Michael Heckmeier \& Claudia Schmitt
July 25, 2024
KEY MESSAGES OF TODAY'S CALL
Q2 2024 as expected $\longleftarrow$ Wafer demand
$\longrightarrow$ Guidance slightly
upgraded
MANAGING THE SOFT DEMAND
Production
Focus on productivity and efficiency
Labor
Adjusted to reduced output e.g. qualified hiring freeze
Working Capital
Effective management
Capex
Restrictive approval of investments
Dividend
Reduced to EUR 1.20 per share for 2023
Costs
Even more intensified emphasis
Q2 2024 AFFECTED BY ONGOING WEAK WAFER DEMAND
351.3
Sales in EUR mn
$2.3 \%$ vs. Q1 2024
25.8
EBITDA Margin in \%
Q1 2024: $26.4 \%$
0.73
Earnings per share in EUR Q1 2024: EUR 0.86
140.6
Capex in EUR mn
Mainly for new fab in SGP
$-95.0$
Net cash flow in EUR mn
Negative due to ongoing investments
Prices
Almost stable Q2 vs. Q1
FINANCIALS Q2 2024
As expected
Q2 FIGURES AS EXPECTED
Profit \& Loss, in EUR million
| Q2 2024 | Q1 2024 | H1 2024 | |
|---|---|---|---|
| Sales | 351.3 | 343.5 | 694.8 |
| Gross profit | 70.6 | 70.1 | 140.7 |
| Gross Margin, in \% | 20.1 | 20.4 | 20.3 |
| EBITDA | 90.6 | 90.8 | 181.4 |
| EBITDA Margin, in \% | 25.8 | 26.4 | 26.1 |
| EBIT | 33.0 | 36.0 | 69.0 |
| EBIT Margin, in \% | 9.4 | 10.5 | 9.9 |
| Net Income | 22.4 | 27.7 | 50.1 |
| EPS, in EUR | 0.73 | 0.86 | 1.59 |
Comments Q2 vs. Q1 2024
Sales
- Slight increase ( $+2.3 \%$ ) driven by higher wafer area sold
- FX and prices almost stable
EBITDA (Margin)
EBITDA on Q1 level, effect of higher sales offset by expected decline in FX hedging result
Margin still around $26 \%$
EBIT
Decrease due to increasing level of planned depreciation
Net income
Decline along with EBIT + additional impact by lower financial result as a result of high capex payments
EQUITY RATIO UNCHANGED AT 47\% INCREASING FIXED ASSETS, SYN LOAN PARTLY DRAWN
Balance Sheet Composition
| Jun 30, 2024 | Dec 31, 2023 | |
|---|---|---|
| Assets, in EUR mn | 4,620 | 4,505 |
| Fixed Assets | $80 \%$ | $77 \%$ |
| Inventories | $7 \%$ | $7 \%$ |
| Receivables | $6 \%$ | $6 \%$ |
| Cash \& Securities | $7 \%$ | $10 \%$ |
| Equity \& Liabilities, in EUR mn | 4,620 | 4,505 |
| Equity | $47 \%$ | $47 \%$ |
| Provisions | $5 \%$ | $5 \%$ |
| Financial Liabilities | $23 \%$ | $20 \%$ |
| Liabilities \& Prepayments | $25 \%$ | $28 \%$ |
Comments Jun 30, 2024 vs. Dec 31, 2023
Fixed assets EUR +242 mn
$\circ$ Further increase to EUR 3.7 bn; declining invest level, but still clearly exceeding depreciation
Working Capital EUR +127 mn
$\circ$ DSO back on normal level compared to Q1
$\circ$ Decrease in trade payables, particularly those related to capex
Cash \& Securities EUR -129 mn
$\circ$ Operating cash flow < payments for capex + dividend
Equity Ratio $47 \%$
Unchanged healthy level
Financial Liabilities EUR +181 mn
Syn loan partly drawn in H1 (EUR 150 mn )
2024 CAPEX REDUCED TO A RANGE BETWEEN EUR 500 AND 530 MILLION
Investment, in EUR million
Chart not to scale
SUCCESSFUL INAUGURATION OF OUR NEW FAB IN SINGAPORE ON JUNE 12
Qualifications
major focus for 2024
Depreciation
starting in Q4
Profitability
positive mid-term impact for Siltronic Group
NET FINANCIAL DEBT IMPACTED BY HIGH CAPEX
Net Financial Debt, in EUR million
Net financial debt Dec 31, 2023
Operating cash flow
Payments for
capex, net ${ }^{1}$
Dividend payment
Others
$1-36$
Net financial debt
June 30, 2024
Change in net financial position EUR -284 mn
Dividend
Payment in Q2
Capex
Payments > invest level, clear reduction of liabilities
REFINANCING IN 2024 UNDER PREPARATION
Debt financing instruments, in EUR million
- Fixed loans, drawn
- Variable loans, drawn
- Syn loan, not drawn yet
Syn loan
Second part drawn in Q2 (EUR 100 mn ), Q1 (EUR 50 mn )
Refinancing
under preparation
OUTLOOK 2024
Guidance slightly upgraded
END MARKET GROWTH STILL NEGATIVELY OVERCOMPENSATED BY EXCESS INVENTORY
Consumption of wafers by end use 2023, in \%
| Smartphones | 22 |
|---|---|
| PCs | 14 |
| Server | 13 |
| Industrial | 16 |
| Automotive | 17 |
| Others ${ }^{1}$ | 18 |
Growth in demand for wafer area 2024 vs. 2023, in \%
Server
Strong growth with AI pushing net content
Smartphones Modest recovery
Industrial \& Automotive Mixed newsflow
HOW DOES AN AI SERVER DRIVE WAFER DEMAND?
2024 GUIDANCE SLIGHTLY UPGRADED
Sales
High single digit percent below prior year
EBITDA Margin
Between 23\% and 25\%
Depreciation
Below EUR 300 mn
EBIT
Significant decline
Capex
Between EUR 500 and 530 mn
Net cash flow
Improved compared to previous year, but remains significantly negative
Financial Calendar and Events
Sep 3, 2024
ODDO Conference
Frankfurt
Sep 4, 2024
DB TMT Conference
London
Sep 23, 2024
Berenberg and GS
German Corporate
Conference, Munich
Investor Relations Contacts
Verena Stütze
[email protected]
Tel. +49 89 8564-3133
Stephanie Malgara
[email protected] Tel. +49 89 8564-3133
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 forwardlooking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities and risk adequate pricing, words such as "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "continue", "projects" or "weeks", "potential", "future", or "further" and similar expressions may identify forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materialily from those expressed or implied by the forward-looking statements. These include, among other factors, changing business or other market conditions, currency and interest fluctuations, introduction of competitive products, poor acceptance of new products and services, change of the corporate strategy and the prospects for growth anticipated by the management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Siltronic AG does not undertake and does not intent to undertake any obligation to update or revise any statements contained in this presentation, whether as a result of new information, future events or otherwise. In particular, you should not place any reliance on forward-looking statements which speak only as of the date of this presentation.