Daqo New Energy Corp · NYSE:DQ
Daqo New Energy — Q4 2015 Earnings Presentation
21 slides from Daqo New Energy's earnings presentation, Mar 24, 2016
Slide 1: Daqo New Energy Corp. Q4 and Fiscal Year 2015 Financial Results
Daqo q New Energy gy Corp. p Unaudited Q4 and Fiscal Year 2015 Financial Results Presentation March 24, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “antici
Slide 3: Agenda
Agenda Business us ess Highlights g g ts and a d Summary Su ay Financial Results and Update Q&A PRIVATE & CONFIDENTIAL P. 3
Slide 4: Business update and Q4 2015 highlights
Business update and Q4 2015 highlights Polysilicon Cost Structure production cost ((including total p g depreciation) p ) of $9.74/kg g in Q4 2015, a decrease of 12.7% from $11.15/kg in Q3 2015. cash cost (excluding depreciation) of $7.69/kg in Q4 2015, a decrease of 11.7% from $8.71/kg in Q3 2015
Slide 5: Daqo Xinjiang Polysilicon Facilities
Daqo Xinjiang Polysilicon Facilities PRIVATE & CONFIDENTIAL P. 5
Slide 6: Market update
Market update Global Gl b l solar l PV installations i t ll ti in i 2015 ttotaled t l d approximately i t l 57 GW GW, representingti a 2626.7% 7% iincrease ffrom 45 GW in 2014. China, Japan and the United States are the three largest solar PV markets globally in 2015. China installed 14.95 GW solar
Slide 7: Market price trend (by PVinsights)
Market price trend ( by PVinsights) Polysilicon spot market price ($/kg) Wafer ASP ($ / piece) $0.94 $21.61 $21.37 $20.83 $20.35 $0.90 $17.87 $18.71 $ 8 $17 45 $17.45 $0.88 $16.94 $16.78 $16.05 $15.12 $0.85 $0.85 $0.85 $13.93 $0.84 $0.84 $0.84 $0.82 $0.81 $0.81 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 8: Xinjiang polysilicon facilities update
Xinjiang polysilicon facilities update Q4 2015 key facts Outlook Production volume of 3,547 MT Expected sales volume in Q1 2016: External sales volume of 3 3,092 092 MT 2 800 ~ 3,000 2,800 3 000 MT Average total production cost : $9.74/kg Cost targets: Average cash cost: $7.69/kg -- Tota
Slide 9: Polysilicon manufacturing overview
Polysilicon manufacturing overview Production Volume (MT) Cash cost and Depreciation ($/kg)* 3,547 Cash cost Depreciation 2,689 20 59 20.59 17.64 4.76 15.98 1,801 1,734 15.75 1,791 14.53 1,748 14 13 13.05 14.13 5.43 13 0 13.23 12.80 12.98 1,517 4.16 3.77 1,445 1,504 2.74 2.65 11.15 1,311 2.33 2.35 2
Slide 10: Wanzhou wafer facilities update
Wanzhou wafer facilities update Q4 2015 key facts Q1 2016 sales volume outlook Capacity C it off approximately i t l Q1 2016 wafer f sales l volume: l 87 million pieces (375 MW) 21.5 ~22.0 million pieces 21.0 million pieces sold to customers Technology enhancement project: Reduce manufactu
Slide 11: Sales volume in Q4 2015 and outlook for Q1 2016
Sales volume in Q4 2015 and outlook for Q1 2016 Q1 2016E Sales Volume Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 guidance Polysilicon 2,800~ 1,646 1,502 1,363 2,277 3,092 (MT) 3,000 Wafer 18.3 18.1 18.3 19.1 21.0 21.5~22.0 (million pieces) PRIVATE & CONFIDENTIAL P. 11
Slide 12: Agenda
Agenda Business Highlights and Summary Financial Results and Update p Q&A PRIVATE & CONFIDENTIAL P. 12
Slide 13: Q4 2015 financial highlights
Q4 2015 financial highlights Revenue of $59 $59.3 3 million in Q4 2015 2015, an increase of 27 27.3% 3% from revenue of $46 $46.6 6 million in Q3 2015; Gross profit was $16.9 million, an increase of 96.5% from $8.6 million in Q3 2015; Non-GAAP gross margin (1) was 31.9%, increased from 23.4% i
Slide 14: P&L Summary (Q4 2015 vs. Q3 2015)
P&L Summary (Q4 2015 vs. Q3 2015) US$ in millions Q4 2015 Q3 2015 Change Analysis Polysilicon: Sales volume ↑, ASPs ↓ Revenues 59.3 46.6 12.7 Wafer: Sales volume ↑ , ASPs ↑ P l ili Polysilicon: S Sales l volume l ↑, C Cost ↓ Cost of revenues (42.4) (38.0) 4.4 Wafer: Sales volume ↑ , Cost ↓ Gross pro
Slide 15: Balance sheet summary
Balance sheet summary Change (Q4 2015 vs. US$ in millions 12/31/2015 9/30/2015 Q3 2015) 12/31/2014 Cash and restricted Cash 33.6 68.7 (35.1) 29.2 Accounts receivable 19.9 15.4 4.5 8.7 Notes receivable 11.1 16.5 (5.4) 50.2 I Inventories t i 10 7 10.7 12 2 12.2 (1 5) (1.5) 96 9.6 Prepaid land use righ
Slide 16: Cash flow summary
Cash flow summary 12 months ended 12 months ended US$ in millions Dec 31, 2015 Dec 31, 2014 Net cash provided by operating activities 66.4 45.6 Net cash (used in) investing activities (74.1) (90.6) Net cash provided by financing activities 15 2 15.2 44 3 44.3 Effect of exchange rate changes (0.1) (0
Slide 17: Full Year 2015 financial and operating highlights
Full Year 2015 financial and operating highlights Polysilicon production volume of 9 9,771 771 MT in 2015 2015, an increase of 48 48.9% 9% from 6 6,560 560 MT in 2014 Polysilicon external sales volume of 8,234 MT in 2015, an increase of 37.9% from 5,972 MT in 2014 Solar wafer sales volume of 7
Slide 18: P&L Summary (FY2015 vs. FY2014)
P&L Summary (FY2015 vs. FY2014) US$ in millions 2015 2014 Ch Change A l i Analysis Poly : Sales↑, ASP↓ Revenues 182.0 182.6 (0.6) Wafer: Sales↑ Poly : Production↑, Unit cost↓ Cost of Revenues 144.5 139.3 5.2 Wafer: Production↑ Production↑, Unit cost↓ Poly : Sales↑;Cost ↓;ASP↓ Gross profit 37.6 43.3
Slide 19: Non-GAAP reconciliation
Non-GAAP reconciliation US$ in millions Q4 2015 Q3 2015 Q4 2014 FY 2015 FY 2014 Net income 9.7 3.1 3.6 13.0 16.6 Income tax expenses 0.5 0.6 - 1.1 - Interest expense 4.3 3.1 4.0 13.2 15.7 Interest income (0.3) (0.05) (0.03) (0.5) (0.3) Depreciation 9.1 8.3 7.1 31.4 28.0 EBITDA (1) 23.4 15.0 14.7 58.
Slide 20: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures To supplement Daqo Daqo’ss consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directl
Slide 21: Agenda
Agenda Business us ess Highlights g g ts and a d Summary Su ay Financial Results and Update Q&A PRIVATE & CONFIDENTIAL P. 21