Siltronic Ag · XETR:WAF
Siltronic — Investor Presentation (March 2021)
32 slides from Siltronic's investor presentation, Mar 9, 2021
Slide 1: Investor Presentation – FY 2020
Siltronic AG Investor Presentation – FY 2020 March 9, 2021 © Siltronic AG
Slide 2: Increasing demand for electronic devices drives semiconductor growth
Increasing demand for electronic devices and new applications drive semiconductor growth, which in turn fuels silicon demand. Electronics Value Chain 2020 Electronics USD 1,650 bn Semiconductors USD 429 bn Semiconductor silicon wafers USD 11.2 bn Silicon for electronic applications USD 1.2 bn Source
Slide 3: Siltronic has a relevant global market share
Siltronic has a relevant global market share… Top 5 wafer producers serve more than 90% of market across all diameters 17% 13% 13% 25% 32% SK Siltron Siltronic Shin Etsu Sumco GlobalWafers Sources: reported company revenues Q1-Q3 2020, converted to USD million Siltronic AG – Investor Presentation FY
Slide 4: An international manufacturing network
... and an international manufacturing network Freiberg CP* 300 mm Germany Portland 200 mm United States Burghausen CP* 300 mm SD* ► Central R&D hub in Burghausen ► High volume facilities for 300 mm in Germany and Singapore ► Among world’s newest & largest SSW CP* 300 mm SSP 200 mm fabs in Singapore
Slide 5: Focused on growing 300 mm and attractive 200 mm business
Siltronic is focused on growing 300 mm and attractive 200 mm business. Development of Total Wafer Demand per Diameter, in mn 300 mm equivalents per month Strong 7 demand 300 mm 200 mm SD (pol/epi) & 6 growth 5 4 3 Stable & attractive 2 1 Mid-term decline 0 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 6: Cost-competitiveness a pre-requisite
Cost-competitiveness a pre-requisite Major cost items Cost development 2021 Productivity improvement Labour Supply savings Recycling COLA Energy efficiency Supplies Automation Commodity Cash cost Prices development Depreciation Polysilicon Energy Siltronic AG – Investor Pre
Slide 7: Overview Financials
Overview Financials Adjusted financial figures (EUR million) 2016 2017 2018 2019 2020 Sales 933.4 1,177.3 1,456.7 1,270.4 1,207.0 EBIT 27.0 235.7 497.7 298.3 192.2 EBIT margin in % 2.9 20.0 34.2 23.5 15.9 EBITDA 146.0 353.1 589.3 408.7 332.0 EBITDA margin in % 15.6 30.0 40.5 32.2 27.5 Earnings per s
Slide 8: Creating value for all stakeholders
Creating value for all stakeholders ... its customers and suppliers … its shareholders Quality & Innovation Long-term value enhancement Technology leadership Attractive return Customer service On-going cost reduction Siltronic offers … its employees ... the environment and society Occu
Slide 9: Clear commitment to sustainability
Clear commitment to sustainability Sustainability at Siltronic AG Claim: We understand sustainability not only as responsible action, but also want to generate competitive advantages through our sustainable actions. Strategy: We plan resource-saving right from the start, based on product and pro
Slide 10: Environment - Efficiency as a success factor
Environment - Efficiency as a success factor Selection of non-financial performance indicators in 2020 GHG emissions Energy Scope 1 and 2 Energy efficiency absolute annual savings (GWh) reduction by 2.2% 7.1 since 2015 in 2020 Waste Recycling Occupational Safety Waste Recycling Ratio Working acciden
Slide 11: CSR targets until 2030
CSR targets until 2030 Consistently sustainable action secures long-term competitive advantages for Siltronic Reduce specific greenhouse gas emissions by 20%1 Reduce specific energy consumption by 20%1 Reduce specific water consumption by 20%1 Increase water recycling by 25%1 Increase waste recyclin
Slide 12: Siltronic strategy - capitalize on market opportunities
Siltronic strategy - capitalize on market opportunities while focusing on 300 mm & technological leadership Optimize returns, stay ahead in technology and grow with the market Strategic Focus Grow Ensure Improve Execute with the market technology & financial performance cost reduction quality leader
Slide 13: Financials 2020
Financials 2020 © Siltronic AG
Slide 14: Revenues down q-o-q due to seasonality and some FX headwind
Revenues down q-o-q due to seasonality and some FX headwind Sales, in EUR m Comments Positive Wafer area sold up y-o-y 323.1 304.3 Stabilizing price trend in H2 300.1 299.2 284.5 Negative ASP in EUR down y-o-y Prices down in H1 H2 down due to negative product mix and strong Euro Q4 b
Slide 15: Lower wafer area sold and productivity gains lead to lower COGS
Lower wafer area sold and productivity gains lead to lower COGS q-o-q Cost of sales, in EUR m Gross profit, in EUR m / Gross margin, in % 31.8 29.8 30.7 210.8 224.0 221.0 211.7 26.1 25.6 207.4 96.9 89.3 99.1 78.2 72.8 Q4 2019 Q1 2020 Q2 Q3 Q4 Q4 2019 Q1 2020 Q2 Q3 Q4 Selling, R&D and admin expenses,
Slide 16: High US-Dollar and Japanese Yen exposure
High US-Dollar and Japanese Yen exposure FX exposure, in % FX sensitivity ~ 10% Sales EBITDA unhedged ~ 25% 1 USD-cent change ~ EUR 6 million ~ EUR 4.5 million ~ 65% ~ 65% 1 JPY change ~ EUR 2.5 million ~ EUR 2 million Sales Costs USD SGD JPY EUR Other currency effects (mostly hedging), Comment in E
Slide 17: EBITDA burdened by strong Euro and tender offer costs in Q4
EBITDA burdened by strong Euro and costs relating to tender offer in Q4 EBITDA, in EUR m / EBITDA margin, in % Depreciation, in EUR m 29.6 31.1 28.1 26.8 23.6 90.0 84.2 100.4 80.1 67.2 -33.3 -30.9 -33.5 -36.5 -38.8 Q4 2019 Q1 2020 Q2 Q3 Q4 Q4 2019 Q1 2020 Q2 Q3 Q4 EBIT, in EUR m / EBIT margin, in %
Slide 18: Net profit of EUR 187 million in 2020
Net profit of EUR 187 million in 2020 Net profit, in EUR m EPS, in EUR 60.8 1.80 45.4 46.0 39.1 40.9 1.21 1.32 1.08 1.17 Q4 2019 Q1 2020 Q2 Q3 Q4 Q4 2019 Q1 2020 Q2 Q3 Q4 Dividend payment, in EUR m Comments Net profit of EUR 187 million in 2020; thereof EUR 160.8m attributable to Siltronic shareho
Slide 19: Tax rate significantly down
Tax rate significantly down Effects on tax expense in 2020 Comments Tax expense w/o special The negative tax rate in Q4 due to one- Tax rate: 8% effects time effects on current and deferred taxes Tax rate in 2020 only 1% Tax effects in USA USA Significant tax benefits to reduce burden of Cor
Slide 20: Working capital down
Working capital down High trade liabilities related to capex and advisory fees Working capital, in EUR m, Inventories and contract assets, in EUR m Working capital ratio to quarterly sales, in % 80 Inventories Contract assets 73 71 60 58 55 60 40 167.4 169.1 175.1 169.3 175.1 188.6 218.1 200.8 168.3
Slide 21: Strong equity ratio and solid net financial assets
Strong equity ratio and solid net financial assets Equity, in EUR m Provisions for pensions, Net financial assets, Equity ratio, in % in EUR m in EUR m 52.8 47.8 45.4 45.4 43.7 Interest rates IFRS USA 2.98% 2.88% 2.46% 2.41% 2.07% Germany 1.24% 1.92% 1.23% 0,95% 0.69% 1031 930 867 833 872 606 567 58
Slide 22: Pension reserves impacted by low IFRS interest rates
Pension reserves impacted by low IFRS interest rates DBO and pension reserves, in EUR m Comment 1,278 ~850 711 DBO of EUR 1,278 million – assets of EUR 711 million = EUR 567 million USA mostly funded 142 2.07% 147 3% Pension reserves @3% = DBO of EUR 108 ~850 million – assets EURO 711 million Ge
Slide 23: Capex 2020 significantly down vs. 2019
Capex 2020 significantly down vs. 2019 Investment, in EUR m Comment Capex 2020 significantly down to EUR 188m Epi expansion in H2 to accommodate demand and market growth Investment in capabilities to enable leading-edge design rules 363 257 188 123 54 Siltronic AG – Investor Presentation FY 20
Slide 24: Net cash flow in line with expectation
Net cash flow in line with expectation Operating cash flow (OCF), in EUR m Customer prepayments net (PP), in EUR m 100.7 85.6 58.6 60.9 31.4 3.6 3.5 -21.6 -16.9 -10.5 Q4 2019 Q1 2020 Q2 Q3 Q4 Q4 2019 Q1 2020 Q2 Q3 Q4 CF Capex, in EUR m Net cash flow (NCF), in EUR m 40.9 26.7 28.6 8.9 -18.9 -48.8 -42
Slide 25: Outlook 2021
Outlook 2021 © Siltronic AG
Slide 26: 2021 off to a good start
2021 off to a good start 2021 challenges and opportunities Good start in 2021 Overall high demand and good to very good loading Foundry, logic and image sensors expected to remain strong Inventory levels of memory chips still on a somewhat elevated level Memory business expected to show po
Slide 27: Positive development of wafer volume in Q1 2021
Positive development of wafer volume in Q1 2021 − Strong foundry and logic business 300 mm − Ongoing uncertainty due to US-China trade tensions and Corona pandemic might lead to elevated inventories across the supply chain − Partial digestion of server components − Recovery in automotive and industr
Slide 28: Estimated market growth of silicon area
Estimated market growth of silicon area Silicon area share of Estimated development of Devices, silicon area share and their “content minus end markets (2020) end markets in 2021 density” effect Phones 25% DRAM 18% High uncertainty due PCs 20% NAND 23% to phone mix Servers 10% Logic 34% Industrials
Slide 29: Siltronic Outlook 2021
Siltronic Outlook 2021 (as of March 1, 2021) Sales − mid to high single-digit percent increase EBITDA margin − slight increase Depreciation − around EUR 155m to EUR 160m EBIT − significant increase Tax rate − significantly below 10% CapEx − around EUR 250 million (mainly in 300 mm epi, capabilities
Slide 30: 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 Petra Mueller email: [email protected] T
Slide 31: 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 32: SILTRONIC AG
SILTRONIC AG | Einsteinstraße 81677 Munich 172 Germany © Siltronic AG