par Siltronic AG (isin : DE000WAF3001)
Siltronic closes Q3 2024 in line with expectations
EQS-News: Siltronic AG / Key word(s): Quarter Results/Quarterly / Interim Statement
Siltronic closes Q3 2024 in line with expectations
24.10.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
Press release
Siltronic AG
Einsteinstrasse 172
81677 Munich
www.siltronic.com
Siltronic closes Q3 2024 in line with expectations
- Sales in the first nine months of 2024 declined 9.1 percent compared to the previous year; Q3 increased 1.7 percent q-o-q to EUR 357.3 million
- EBITDA margin remains solid at 25.7 percent after nine months (Q3 2024: 25.0 percent)
- Guidance for 2024 confirmed: Sales in the high single-digit percentage range below previous year; delayed customer qualifications for the new fab in Singapore lead to a slight adjustment of the EBITDA margin to a range of 24 to 26 percent
Munich, Germany, October 24, 2024 – As expected, the business performance of Siltronic AG (MDAX/TecDAX: WAF) in Q3 2024 was characterized by subdued demand from the semiconductor industry.
“In a persistently challenging market environment, we have delivered solid quarterly results. Consequently, we can confirm our guidance for the full year 2024. However, it remains uncertain when chip manufacturers' inventories will return to normal levels,” commented Dr. Michael Heckmeier, CEO of Siltronic AG on the developments.
Business Development in Q3 2024
| Change | Change | |||||||||||
| Q3 2024 | Q2 2024 | Q3 2023 | Q3 to Q2 | Q3 to Q3 | Q1-Q3 2024 | Q1-Q3 2023 | ||||||
| Sales | In EUR million | 357.3 | 351.3 | 349.1 | 6.0 | 8.2 | 1,052.2 | 1,157.2 | –105.0 | |||
| in % | 1.7 | 2.3 | –9.1 | |||||||||
| Cost of sales | In EUR million | –288.1 | –280.7 | –273.4 | –7.4 | –14.7 | –842.3 | –864.2 | 21.9 | |||
| in % | 2.6 | 5.4 | –2.5 | |||||||||
| Gross profit | In EUR million | 69.2 | 70.6 | 75.7 | –1.4 | –6.5 | 209.9 | 293.0 | –83.1 | |||
| in % | –2.0 | –8.6 | –28.4 | |||||||||
| Gross margin | in % | 19.4 | 20.1 | 21.7 | 20.0 | 25.3 | ||||||
| EBITDA | In EUR million | 89.4 | 90.6 | 99.1 | –1.2 | –9.7 | 270.7 | 342.8 | –72.1 | |||
| in % | –1.4 | –9.8 | –21.0 | |||||||||
| EBITDA margin | in % | 25.0 | 25.8 | 28.4 | 25.7 | 29.6 | ||||||
| Depreciation, amortization and impairment less reversals thereof | In EUR million | –60.5 | –57.6 | –52.7 | –2.8 | –7.8 | –172.9 | –148.3 | –24.7 | |||
| EBIT | In EUR million | 28.9 | 33.0 | 46.4 | –4.1 | –17.5 | 97.8 | 194.5 | –96.7 | |||
| in % | –12.4 | –37.7 | –49.7 | |||||||||
| EBIT margin | in % | 8.1 | 9.4 | 13.3 | 9.3 | 16.8 | ||||||
| Financial result | In EUR million | –6.6 | –6.8 | -1.7 | 0.2 | –4.9 | –16.5 | 1.7 | –18.2 | |||
| Result before income taxes | In EUR million | 22.3 | 26.2 | 44.7 | –3.9 | –22.4 | 81.3 | 196.2 | –114.9 | |||
| in % | –14.8 | –50.1 | –58.6 | |||||||||
| Income taxes | In EUR million | –3.5 | –3.8 | –9.6 | 0.3 | 6.1 | –12.5 | –27.2 | 14.7 | |||
| Tax rate | in % | 16 | 15 | 21 | 15 | 14 | ||||||
| Result for the period | In EUR million | 18.8 | 22.4 | 35.1 | –3.6 | –16.3 | 68.8 | 169.0 | –100.2 | |||
| in % | –16.0 | –46.4 | –59.3 | |||||||||
| Earnings per share | in EUR | 0.60 | 0.73 | 1.10 | –0.13 | –0.50 | 2.19 | 5.13 | –2.94 | |||
Siltronic generated sales of EUR 357.3 million in Q3 2024, an increase of 1.7 percent compared to the previous quarter (Q2 2024: EUR 351.3 million). This is due to an increase in wafer area sold, which was partially offset by opposing product mix effects. After nine months, the company reported sales of EUR 1,052.2 million, a decrease of 9.1 percent year-on-year (Q1-Q3 2023: EUR 1,157.2 million). This was mainly due to the lower wafer area sold. In addition, product mix-, price- and FX effects also had a slightly negative impact.
Cost of sales increased by 2.6 percent in Q3 2024 compared to the previous quarter, mainly due to higher wafer area sold and a moderate increase in depreciation. For the first nine months of 2024, cost of sales decreased by 2.5 percent compared to the same period in 2023. The disproportionate decline compared to sales is primarily due to a reduced dilution of fixed costs and higher depreciation.
As a result, the gross profit fell by EUR 1.4 million compared to the previous quarter and from January to September 2024 by EUR 83.1 million compared to the previous year. The gross margin fell from 25.3 percent to 20.0 percent year-on-year.
EBITDA in Q3 was EUR 89.4 million and thus on the level of the previous quarter (Q2 2024: EUR 90.6 million). The EBITDA margin remained at a solid level of 25.0 percent (Q2 2024: 25.8 percent). After nine months, Siltronic reported an EBITDA of EUR 270.7 million (Q1-Q3 2023: EUR 342.8 million) and an EBITDA margin of 25.7 percent (Q1-Q3 2023: 29.6 percent).
Due to the lower EBITDA and higher depreciation, EBIT amounted to EUR 28.9 million in Q3 (Q2 2024: EUR 33.0 million) and to EUR 97.8 million after the first nine months (Q1-Q3 2023: EUR 194.5 million). Net profit for the quarter was EUR 18.8 million (Q2 2024: EUR 22.4 million) and earnings per share were EUR 0.60 (Q2 2024: EUR 0.73). Net income for the period from January to September was EUR 68.8 million (Q1-Q3 2023: EUR 169.0 million) and earnings per share of EUR 2.19 after EUR 5.13 in the same period of the previous year.
Investment activity continues to shape assets and financial position; successful refinancing attracts strong investor interest
| In EUR million | Sep. 30, 2024 | Dec. 31, 2023 | Change | |
| Equity | 2,191.1 | 2,099.7 | 91.4 | |
| Provisions for pensions | 138.9 | 146.0 | –7.1 | |
| Customer prepayments | 503.7 | 542.5 | –38.8 | |
| Loan liabilties | 996.2 | 785.1 | 211.1 | |
| Lease liabilities | 132.7 | 109.5 | 23.2 | |
| Other provisions and liabillities | 215.0 | 184.2 | 30.8 | |
| Non-current liabilities | 1,986.5 | 1,767.3 | 219.2 |
With an equity ratio of 47.1 percent as of September 30, 2024 (December 31, 2023: 46.6 percent), Siltronic continues to maintain a good balance sheet quality. Loan liabilities increased mainly due to the partial draw of a loan. Additionally a promissory note loan was successfully placed in September and paid out in early October. At roughly EUR 370 million, the original issue volume was significantly exceeded.
“We are pleased with the high level of interest in this transaction. The strong demand is a demonstration of the promissory note loan investors' trust in the company” adds Claudia Schmitt, CFO of Siltronic AG.
| In EUR million | Q1-Q3 2024 | Q1-Q3 2023 | Change | |
| Cash flow from operating activities | 241.0 | 324.3 | –83.3 | |
| Proceeds/payments for capital expenditure including intangible assets, incl. Investment Grants | –565.1 | –904.6 | 339.5 | |
| Free cash flow | –324.1 | –580.3 | 256.2 | |
| Cash-effective change in prepayments | 6.4 | –51.0 | 57.4 | |
| Net cash flow | –317.7 | –631.3 | 313.6 | |
| Proceeds/payments for capital expenditure including intangible assets, incl. Investment Grants | –565.1 | –904.6 | 339.5 | |
| Proceeds/payments for securities and fixed-term deposits | –54.8 | 499.4 | –554.2 | |
| Cash flow from investing activities | –619.9 | –405.2 | –214.7 |
Cash flow from operating activities for the period January to September 2024 decreased by EUR 83.3 million compared to the previous year. This was mainly due to the lower EBITDA and the change in prepayments. In the same period of the previous year, there was a significant net inflow, while in the first nine months of the financial year there was a net outflow of prepayments.
Despite a noticable reduction in capex during the year, cash outflows for capex remained at a high level of EUR 565.1 million, mainly due to the construction of the new 300 mm fab in Singapore. Accordingly, net cash flow, which excludes cash inflows and outflows from prepayments, was negative as expected at EUR -317.7 million (Q1-Q3 2023: EUR -631.3 million).
| In EUR million | Sep. 30, 2024 | Dec. 31, 2023 | Change | |
| Cash and cash equivalents | –164.9 | –386.2 | 221.3 | |
| Financial investments | –125.8 | –72.9 | –52.9 | |
| Restricted long-term securities | 2.5 | 2.2 | 0.3 | |
| Nominal value of loan liabilities including interest | 1,027.3 | 812.6 | 214.7 | |
| Net financial debt | 739.1 | 355.7 | 383.4 |
As a result, cash and cash equivalents and financial investments decreased by EUR 168.4 million to EUR 290.7 million in the first nine months of 2024. Siltronic thus reported net financial debt of EUR 739.1 million at the end of September 2024.
Guidance 2024 confirmed
As already communicated in the half-year report 2024, Siltronic AG's Executive Board expects sales to be in the high single-digit percentage range below the previous year. This is primarily due to the lower wafer area sold, as well as each slightly negative FX rate (EUR/USD 1.10), price- and product mix effects.
The customer qualifications that are decisive for the start of depreciation of the new fab in Singapore have been delayed from the fourth quarter of 2024 into next year. As a result, depreciation of the new fab and other ramp costs that impact earnings will occur over the course of 2025. Accordingly, the full-year EBITDA margin guidance is adjusted to 24 to 26 percent. Depreciation and amortization for 2024 will therefore be lower and is expected to be between EUR 230 million and EUR 250 million. Capex including intangible assets remains unchanged and will be in the range of EUR 500 million to EUR 530 million.
Despite the challenging market environment, the company anticipates a significant growth potential in the medium and long term. Key drivers of this growth are megatrends such as Artificial Intelligence, Digitization, and Electromobility. With its investments in expanding production capacity and improving the product mix, Siltronic is well-positioned to profitably support this growth.
Overview of guidance changes
| Guidance March 12, 2024 (Annual Report) | Guidance April 26, 2024 (Ad-hoc) | Guidance July 25, 2024 (Q2 2024) | Guidance October 24, 2024 (Q3 2024) | ||
| EBITDA margin | before ramp costs, in the region of the previous year; ramp costs will reduce the EBITDA margin by up to 3 percentage points compared to the previous year | between 21 and 25 percent | between 23 and 25 percent | between 24 and 26 percent | |
| EBIT | significant decline | significant decline | significant decline | significant decline | |
| Net cash flow | will significantly improve compared to previous year, but remains significantly negative | will significantly improve compared to previous year, but remains significantly negative | will significantly improve compared to previous year, but remains significantly negative | will significantly improve compared to previous year, but remains significantly negative | |
| Sales | in the region of the previous year | roughly 10 percent below previous year | in the high single-digit percentage range below previous year | in the high single-digit percentage range below previous year | |
| Depreciation and amortization | almost doubled compared to the previous year | below EUR 300 million | below EUR 300 million | between EUR 230 and 250 million | |
| Investments | below EUR 600 million | slightly below EUR 550 million | between EUR 500 and 530 million | between EUR 500 and 530 million |
Siltronic AG – Key financial figures Q3 2024
| Profit and Loss statement | |||||||||
| In EUR million | Q1-Q3 2024 | Q1-Q3 2023 | Q3 2024 | Q2 2024 | Q1 2024 | Q3 2023 | |||
| Sales | 1,052.2 | 1,157.2 | 357.3 | 351.3 | 343.5 | 349.1 | |||
| EBITDA | 270.7 | 342.8 | 89.4 | 90.6 | 90.8 | 99.1 | |||
| EBITDA margin | % | 25.7 | 29.6 | 25.0 | 25.8 | 26.4 | 28.4 | ||
| EBIT | 97.8 | 194.5 | 28.9 | 33.0 | 36.0 | 46.4 | |||
| EBIT margin | % | 9.3 | 16.8 | 8.1 | 9.4 | 10.5 | 13.3 | ||
| Result for the period | 68.8 | 169.0 | 18.8 | 22.4 | 27.7 | 35.1 | |||
| Earnings per share | EUR | 2.19 | 5.13 | 0.60 | 0.73 | 0.86 | 1.10 | ||
| Capital expenditure and net cash flow | |||||||||
| Capital expenditure including intangible assets | 407.1 | 943.7 | 93.5 | 140.6 | 173.0 | 317.5 | |||
| Net cash flow | –317.7 | –631.3 | –65.0 | –94.9 | –157.9 | –215.3 | |||
| Statement of financial position | ||||
| In EUR million | Sep. 30, 2024 | Dec. 31, 2023 | ||
| Total assets | 4,649.5 | 4,504.9 | ||
| Equity | 2,191.1 | 2,099.7 | ||
| Equity ratio | % | 47.1 | 46.6 | |
| Net financial debt | 739.1 | 355.7 |
Conference call for analysts and investors
The Executive Board of Siltronic AG will hold a conference call with analysts and investors (in English only) on October 24, 2024 at 10:00 am (CEST). This call will be streamed via the Internet. The audio webcast will be available live as well as on demand on Siltronic’s website.
The current investor presentation and the quarterly statement are also published on the Siltronic website.
Contact:
Verena Stütze
Head of Investor Relations & Communications
Tel.:+49 (0)89 8564 3133
investor.relations@siltronic.com
Company profile:
Siltronic AG is one of the world's leading producers of hyperpure silicon wafers and has been a partner to many major semiconductor manufacturers for decades. Siltronic is globally oriented and operates production facilities in Asia, Europe and the USA. Silicon wafers are the foundation of the modern semiconductor industry and the basis for chips in all electronic applications - from computers and smartphones to electric cars and wind turbines. The international company is highly customer-oriented and focused on quality, precision, innovation and growth. Siltronic AG employs around 4,500 people worldwide and has been listed in the Prime Standard of the German Stock Exchange since 2015. Siltronic AG shares are included in both the MDAX and TecDAX stock market indices.
Financial information – pursuant to IFRS, unaudited
Siltronic AG – Consolidated Statement of Profit or Loss
| In EUR million | Q3 2024 | Q3 2023 | Q1-Q3 2024 | Q1-Q3 2023 | ||
| Sales | 357.3 | 349.1 | 1,052.2 | 1,157.2 | ||
| Cost of sales | -288.1 | -273.4 | -842.3 | -864.2 | ||
| Gross profit | 69.2 | 75.7 | 209.9 | 293.0 | ||
| Selling expenses | -7.9 | -8.3 | -24.4 | -26.1 | ||
| Research and development expenses | -19.7 | -21.4 | -63.4 | -64.3 | ||
| General administration expenses | -8.1 | -8.4 | -26.4 | -26.0 | ||
| Other operating income | 13.8 | 30.1 | 63.0 | 101.0 | ||
| Other operating expenses | -18.4 | -21.3 | -60.9 | -83.1 | ||
| Operating result | 28.9 | 46.4 | 97.8 | 194.5 | ||
| Interest income | 2.5 | 6.3 | 8.8 | 18.7 | ||
| Interest expenses | -7.6 | -6.7 | -20.2 | -15.1 | ||
| Other financial result | -1.5 | -1.3 | -5.1 | -1.9 | ||
| Financial result | -6.6 | -1.7 | -16.5 | 1.7 | ||
| Result before income tax | 22.3 | 44.7 | 81.3 | 196.2 | ||
| Income taxes | -3.5 | -9.6 | -12.5 | -27.2 | ||
| Result for the period | 18.8 | 35.1 | 68.8 | 169.0 | ||
| of which | ||||||
| attributable to Siltronic AG shareholders | 17.9 | 33.1 | 65.4 | 154.1 | ||
| attributable to non-controlling interests | 0.9 | 2 | 3.4 | 14.9 | ||
| Earnings per share in EUR (basic/diluted) | 0.60 | 1.10 | 2.19 | 5.13 |
Siltronic AG - Consolidated Statement of Financial Position
| In EUR million | Sep. 30, 2024 | Dec. 31, 2023 | |
| Intangible assets | 31.3 | 22.2 | |
| Property, plant and equipment | 3,598.8 | 3,318.8 | |
| Right-of-use assets | 142.0 | 120.3 | |
| Securities and fixed-term deposits | 2.5 | 2.2 | |
| Other financial assets | 0.2 | 0.6 | |
| Other non-financial assets | 14.0 | 17.2 | |
| Deferred tax assets | 22.3 | 18.0 | |
| Non-current assets | 3,811.1 | 3,499.3 | |
| Inventories | 304.6 | 300.8 | |
| Trade receivables | 165.6 | 162.4 | |
| Contract assets | 12.4 | 12.2 | |
| Securities and fixed-term deposits | 123.3 | 70.7 | |
| Other financial assets | 17.7 | 18.9 | |
| Other non-financial assets | 47.6 | 52.2 | |
| Income tax receivables | 2.3 | 2.2 | |
| Cash and cash equivalents | 164.9 | 386.2 | |
| Current assets | 838.4 | 1,005.6 | |
| Total assets | 4,649.5 | 4,504.9 | |
| Subscribed capital | 120.0 | 120.0 | |
| Capital reserves | 974.6 | 974.6 | |
| Retained earnings and net Group result | 797.6 | 768.1 | |
| Other equity items | 96.3 | 41.7 | |
| Equity attributable to Siltronic AG shareholders | 1,988.5 | 1,904.4 | |
| Equity attributable to non-controlling interests | 202.6 | 195.3 | |
| Equity | 2,191.1 | 2,099.7 | |
| Provisions for pensions | 138.9 | 146.0 | |
| Other provisions | 64.3 | 65.7 | |
| Liabilities for income taxes | 2.6 | 2.6 | |
| Deferred tax liabilities | 3.4 | 2.5 | |
| Customer prepayments | 503.7 | 542.5 | |
| Loan liabilities | 996.2 | 785.1 | |
| Lease liabilities | 132.7 | 109.5 | |
| Other financial liabilites | 0.5 | 0.1 | |
| Other non-financial liabilities | 144.2 | 113.3 | |
| Non-current liabilities | 1,986.5 | 1,767.3 | |
| Other provisions | 9.5 | 8.3 | |
| Liabilities for income taxes | 14.7 | 21.7 | |
| Trade liabilities | 253.5 | 452.5 | |
| Customer prepayments | 71.2 | 46.3 | |