DGAP-News: Siltronic AG / Key word(s): Preliminary Results
Siltronic AG: Successful year for Siltronic in 2015 (news with additional
features)
01.02.2016 / 07:00
The issuer is solely responsible for the content of this announcement.
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Press release
Siltronic AG
Hanns-Seidel-Platz 4
81737 Munich, Germany
www.siltronic.com
Successful year for Siltronic in 2015
- Preliminary sales rise to EUR931 million in 2015 (2014 adjusted: EUR853
million)
- Preliminary EBITDA improves to EUR124 million (2014 adjusted: EUR118
million)
- Preliminary EBIT in positive figures at EUR3 million (2014 adjusted:
minus EUR32 million)
- Preliminary net financial assets of EUR156 million (December 31, 2014:
net financial debt of EUR25 million)
Munich, Germany, February 1, 2016 - Siltronic AG, the world's third-largest
manufacturer of hyperpure silicon wafers, had another successful year in
2015. Based on preliminary and unaudited figures, sales increased to EUR931
million in 2015, up 9 percent year on year (2014 adjusted: EUR853 million).
This significant rise was mostly due to a strong US dollar and higher unit
sales.
Preliminary earnings before interest, taxes, depreciation, and amortization
(EBITDA) of the TecDAX-listed company amounted to EUR124 million. EBITDA
was 5 percent above the prior-year figure (2014 adjusted: EUR118 million).
The preliminary EBITDA margin was 13 percent (2014 adjusted: 14 percent).
Other operating income and expenses are largely influenced by foreign
exchange effects, especially due to measures to hedge foreign exchange
risks. In 2015, these effects added up to expenses of EUR46 million. In
2014, it was an income of EUR7 million. Without this effect, preliminary
EBITDA for 2015 would have been EUR170 million with an EBITDA margin of 18
percent.
Preliminary earnings before interest and tax (EBIT) were also positive at
EUR3 million (2014 adjusted: minus EUR32 million).
Ongoing implementation of the cost reduction program, which was launched
back in 2010, again had a very positive impact on earnings in 2015. The
total savings realized came in at around EUR45 million.
Siltronic invested EUR75 million in property, plant and equipment and in
other non-current intangible assets in 2015. The largest items included a
new crystal pulling plant at the production facility in Freiberg and new
crystal pullers in Singapore.
Preliminary free cash flow was significantly positive at EUR37 million in
2015, compared to EUR87 million in 2014. Siltronic financed its capex from
the operating cash flow, both in 2015 and in 2014.
Due to the IPO in June 2015 and the free cash flow generated, the Company
increased its net financial assets to EUR156 million as of December 31,
2015, compared with net financial debt of EUR25 million as of December 31,
2014.
"We are pleased that we can look back on another successful year in 2015.
Siltronic continued to grow, despite worldwide economic uncertainties and,
in the second half of the year, slightly reduced customer orders," says Dr.
Christoph von Plotho, President & Chief Executive Officer of Siltronic AG.
"We achieved our October forecast to grow in the high single digits. The
EBITDA margin came to 13 percent, which was down slightly on the first
three quarters of 2015, as we had expected. EBIT was also positive."
Contraction in Q4 2015, as anticipated
Siltronic's sales were relatively high in the first half of 2015. However,
they began to soften in the third quarter as customers scaled back their
inventories and uncertainty grew about what would happen in the economy
going forward, particularly in China. In the final three months of 2015,
sales were impacted by reduced customers' orders, combined with the usual
seasonal slowdown, lower average selling prices in US dollars, and changes
in the product mix. Positive currency effects were not able to fully
compensate for these factors. Preliminary sales for the period October to
December 2015 therefore amounted to EUR215 million, down by approximately 4
percent on the strong corresponding prior-year period (Q4 2014: EUR223
million).
At EUR23 million, preliminary EBITDA for the fourth quarter of 2015 was
down by 41 percent year on year (Q4 2014: EUR39 million). The EBITDA margin
for the period from October to December 2015 was thus 11 percent (Q4 2014:
18 percent). The main reason for this decrease, besides the lower level of
sales, were the currency effects included in other operating income and
expenses. In the fourth quarter, these added up to expenses of EUR10
million (Q4 2014: income of EUR0.2 million).
Muted expectations for the first half of 2016
In view of the macroeconomic forecasts for 2016, slower growth in the
smartphone sector, and the current weakness of demand in the computing
sector, Siltronic anticipates that business will be moderate in the first
half of 2016. In addition to the usual seasonal weakness of the first
quarter, customers will continue to be cautious, which means demand for
wafers is predicted to be at roughly the same level as in the fourth
quarter of 2015. Looking to the second quarter of 2016 and given what
customers have said about how they think 2016 will develop, the Company is
slightly optimistic that demand will slowly pick up again. Based on past
experience, however, updated forecasts are not likely to be made prior to
Chinese New Year in early February.
Siltronic believes there will be interesting opportunities, particularly in
automotive and industrial applications, and predicts further growth in
these areas in the medium term.
The latest market data on semiconductor component sales does not yet allow
any conclusions to be drawn about the course of business during 2016 as a
whole.
Prices for some product lines with low production capacity utilization came
under pressure in the fourth quarter of 2015. Siltronic expects this trend
to continue, at least in the first six months of 2016. For products that
have high capacity utilization, the Company currently anticipates
relatively stable prices. In the Company's view, it is not yet possible to
make a prediction for the second half of this year.
Positive impact from cost-cutting program and reduced losses from currency
hedging expected in the first half of 2016
Siltronic will continue with its cost-cutting programs and expects savings
of around EUR30 million to EUR35 million in 2016. These activities will
begin to make an impact in the first half of 2016.
The Company anticipates exchange rate losses resulting from currency
hedging in 2016 which should predominantly occur in the first quarter.
Assuming a US dollar/euro exchange rate of 1.10, these losses should be in
the range of EUR10 million to EUR15 million.
Siltronic AG - preliminary results for 20151)
<pre>
2015 2014 Change
EUR million adjusted2) (%)
Statement of profit and loss Jan. 1-Dec. 31, Jan. 1-Dec. 31,
2015 2014
Sales 931 853 9%
EBITDA 124 118 5%
EBITDA margin 13% 14%
EBIT 3 -32
Capital expenditure3) 75 41 83%
Cash flow / statement of financial Dec. 31, 2015 Dec. 31, 2014
position
Free cash flow 37 87 -57%
Net financial assets 156 -25
</pre>
<pre>
EUR million Q4 2015 Q4 2014 Change
Oct. 1-Dec. 31, Oct. 1-Dec. 31, (%)
2015 2014
Statement of profit and
loss
Sales 215 223 -4%
EBITDA 23 39 -41%
EBITDA margin 11% 18%
</pre>
1) The results in this document are preliminary and have not yet been
approved by the Supervisory Board or audited by an external auditor. All
numbers have been rounded to the nearest million.
2) The step acquisition of Siltronic Silicon Wafer Pte. Ltd. (SSW) in
Singapore on January 24, 2014 resulted in positive consolidation effects
that have been recognized in the adjusted figures for 2014. The numbers
were adjusted to what they would have been had SSW been acquired prior to
January 1, 2014.
3) Excl. capital expenditure on financial assets.
Upcoming dates
A comprehensive report with more detailed disclosures will be provided when
the final results for 2015 are published on March 16, 2016.
Contact:
Petra Müller
Director of Investor Relations & Communications
Tel: +49 (0)89 8564 3133
Email: investor.relations@siltronic.com
Company profile:
Siltronic is the third largest manufacturer of hyperpure silicon wafers
worldwide and partner of many leading semiconductor companies. The company
has a network of state-of-the-art production sites in Europe, Asia and the
USA. Siltronic develops and manufactures silicon wafers in diameters of up
to 300mm. Silicon wafers are the basis for modern microelectronics and
nanoelectronics. They are key components of e.g. computers, flat-screens,
navigation systems, control systems for the automotive industry and many
other applications.
Important notice
This press release contains forward-looking statements based on assumptions
and estimates of Siltronic's Executive Board. Although we assume the
expectations in these forwardlooking 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 forwardlooking statements, nor does it assume the obligation to
do so.
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=RFEBMBXGIA
Document title: Press Release 'Successful year for Siltronic in 2015'
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service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Siltronic AG
Hanns-Seidel-Platz 4
81737 Munich
Germany
Phone: +49 89 8564 3133
Fax: +49 89 8564-3904
E-mail: investor.relation@siltronic.com
Internet: www.siltronic.com
ISIN: DE000WAF3001
WKN: WAF300
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Stuttgart,
Tradegate Exchange
End of News DGAP News Service
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433349 01.02.2016
DGAP-News: Siltronic AG: Successful year for Siltronic in 2015 (news with additional features)
| Source: EQS Group AG