(DGAP-Media / 2015-07-31 / 07:05)
Press release
Siltronic AG
Hanns-Seidel-Platz 4
81737 Munich, Germany
www.siltronic.com
- Q2 sales increased by 17 percent to EUR247 million compared to the
previous year due to higher volume and favorable foreign exchange rates
- EBITDA improved by 11 percent to about EUR31 million in Q2; EBITDA
margin is approximately 13 percent. Adjusted by foreign exchange
losses, especially from hedging instruments, EBITDA margin would have
reached almost 20 percent.
- Equity ratio increased to approximately 47 percent
- Positive free cash flow of EUR47 million in H1
Munich, July 31, 2015 - Siltronic AG has significantly increased its sales
and operating result (EBITDA) in Q2 2015 due to higher volume and overall
favorable foreign exchange rate effects. The Munich-based semiconductor
company generated sales of EUR246.7 million from April to June (previous
year: EUR210.4 million). This represents an impressive 17 percent increase
compared to last year. Sales for the first six months of the current
financial year amounted to EUR485.4 million (previous year: EUR406.7
million) which is an increase of about 19 percent.
The boost in sales had a positive impact on earnings before interest,
taxes, depreciation and amortization (EBITDA). The EBITDA improved by
approximately 11 percent to EUR31.4 million in the reporting quarter
(previous year: EUR28.3 million). That corresponds to an EBITDA margin of
12.7 percent (previous year: 13.5 percent). Foreign exchange rate effects,
including currency hedging instruments reduced Q2 2015 EBITDA by EUR17.6
million. The EBITDA margin for the reporting quarter is around 20 percent
when adjusted by this amount. In H1, EBITDA totaled EUR71.5 million
(previous year: EUR59.7 million). That is almost 20 percent more than a
year ago. The EBITDA margin for the first six months of the year equals
14.7 percent (previous year: 14.7 percent).
There are three main reasons for the increase in EBITDA. First, Siltronic
made great efforts in reducing costs and increasing productivity which had
a positive influence on earnings. Secondly, the increase in capacity
utilization diluted the fixed cost per unit compared to the previous year.
Finally, due to favorable foreign exchange rate developments, the increase
in the cost of goods sold was lower than sales growth due to cost of goods
sold being largely denominated in Euro.
Earnings before interest and tax (EBIT) amounted to EUR0.2 million for the
reporting quarter (previous year: EUR-9.5 million). That is almost EUR10
million more than one year ago. The EBIT margin equals 0.1 percent
(previous year: -4.5 percent). In H1 the EBIT was EUR8.5 million (previous
year: EUR10.5 million) with the EBIT margin reaching 1.8 percent (previous
year: -2.6 percent). Net results in the reporting quarter amounts to
EUR-7.0 million (previous year: EUR-14.1 million) and earnings per share to
EUR-0.17 (previous year: EUR-0.35). For H1, net results came in at EUR-5.1
million (previous year: EUR-17.1 million) with earnings per share of
EUR-0.07 (previous year: EUR-0.37).
"Our performance in the first six months is the result of our excellent
setup," said Chairman of the Board Christoph von Plotho in Munich on
Friday. "We recorded considerable growth rates in volumes and sales once
again and achieved significant improvements in all core financial key
performance indicators. This is particularly true for the EBITDA, i.e. the
operating result and the return on capital employed (ROCE). Free cash flow
also reached a high level."
Cashflow, investments, net financial assets, equity ratio and ROCE
Cash flow from operating activities was EUR62.6 million in H1 (previous
year: EUR89.8 million). It decreased by some 30 percent compared with the
first six month of the prior year. The main reason for this are
prepayments: While Siltronic received prepayments of EUR53.2 million in the
first six months of the previous year, no cash inflows from prepayments
were recorded for the first six months of 2015.
At the same time, cash out for investments in fixed assets and intangible
assets remained at a low level. In H1, these totaled to EUR15.8 million
(previous year: EUR14.8 million). In addition to capability improvements,
we invested in automation and the selective replacement of crystal pulling
capacities. In total, free cash flow (cash inflow from operating activities
less investments in property, plant and equipment and intangible assets)
amounted to EUR46.8 million for the first six months of 2015 (previous
year: EUR75.0). This is a decrease of about 38 percent. Adjusted for
prepayments, free cash flow more than doubled compared to previous year.
Because of the IPO and positive free cash flows generated in the first half
year of 2015, Siltronic recorded net financial assets of EUR166.1 million
as of June 30, 2015 (December 31, 2014: EUR24.5 million net financial
debt).
The equity ratio increased significantly in the reporting quarter. The
total equity of Siltronic was EUR500.9 million on June 30, 2015 (December
31, 2014: EUR311.8 million). The cash inflow from the IPO less transaction
costs significantly increased the company's equity by EUR143.3 million. In
addition, higher discount rates for pension provisions increased the equity
of the company by EUR47.8 million. The equity ratio was 46.7 percent on
June 30, 2015 (December 31, 2014: 29.1 percent).
The return on capital employed (ROCE) was 2.2 percent in H1 2015 (previous
year: -2.6 percent).
Employees
The average number of employees decreased since December 31, 2014. The
reduction is primarily due to early retirement arrangements, voluntary
severance packages, natural fluctuations and transfers to Wacker Chemie AG.
On the balance sheet date as of June 30, 2015, the Group had 4,043
employees (December 31, 2014: 4,163). Of these, we had 2,617 employees in
Germany and 1,426 at international locations.
Outlook
For 2015, Siltronic expects an increase in volume shipped compared to the
previous year. It is also expecting the average sales price (ASP) in Euros
per wafer to be higher in 2015 than in the previous year. Despite lower
prices in contract currency, foreign exchange rates should lead to higher
ASPs compared to prior year. For H2, Siltronic assumes mostly stable prices
compared to the first six months. At an estimated exchange rate of 1.10 USD
per Euro, we also expect higher ASPs in H2 compared to previous year.
Siltronic's sales are expected to see considerable growth in 2015. In the
first six months, sales improved significantly year-on-year by 19 percent.
Sales are also expected to be above the previous year's level for H2,
however, at a lower growth rate than in H1.
Effects from foreign exchange rates recorded in other operating income and
expenses are expected to put a burden on the EBITDA margin in H2. The
EBITDA margin was 15 percent in H1. This includes foreign exchange rate
losses recorded in other operating income and expenses of EUR-20 million,
which is mainly due to hedging instruments we entered into in 2014. The
impact of exchange rate losses included in other operating expenses are
expected to increase to EUR-30 million in H2. However, Siltronic expects a
positive return on capital employed (ROCE) for the entire year.
Investments will increase as planned. EUR13 million were invested in H1 in
property, plant and equipment and intangible assets. Siltronic expects
investments between EUR50 million and EUR65 million in H2.
Free cash flow is expected to stay positive for the entire year 2015.
Siltronic achieved free cash flow of EUR47 million in the first half of the
year, but due to considerably higher capital expenditures in the second
half of the year, free cash flow is expected to be neutral or slightly
positive in H2.
Information for editorial offices: The Q2 2015 report is available for
download on the Siltronic website (www.siltronic.com) under Investor
Relations.
Further information is available from:
Judith Distelrath
Tel.: +49 (0)89 8564 3133
Email: investor.relations@siltronic.com
Company profile
Siltronic is the world's third-largest manufacturer of hyperpure silicone
wafers, and is a partner to many leading chip manufacturers. The company
has production facilities in Europe, Asia and the US. Siltronic develops
and manufacturers wafers with a diameter of up to 300 mm. Silicone wafers
form the basis for advanced micro- and nano-electronics. They are used, for
example, in computers, smartphones, flat displays, navigation systems,
management and control systems for the automobile industry and for many
other purposes.
This press release contains forward-looking statements based on assumptions
and estimates of Siltronic's Executive Board. Although we assume the
expectations in these forward-looking statements are realistic, we cannot
guarantee they will prove to be correct. The assumptions may harbor risks
and uncertainties that may cause the actual figures to differ considerably
from the forward-looking statements. Factors that may cause such
discrepancies include, among other things, changes in the economic and
business environment, variations in exchange and interest rates, the
introduction of competing products, lack of acceptance for new products or
services, and changes in corporate strategy. Siltronic does not plan to
update the forward looking statements, nor does it assume the obligation to
do so.
The contents of this press information refer equally to men and women. To
aid readability, the male pronoun has been used (e.g. he/his).
End of Media Release
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Issuer: Siltronic AG
Key word(s): Industry
2015-07-31 Dissemination of a Press Release, transmitted by DGAP - a
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