16.03.2016
Siltronic AG DE000WAF3001
DGAP-News: Siltronic AG: Siltronic closed financial year 2015 successfully and expects results to develop positively in 2016 (news with additional features)
DGAP-News: Siltronic AG / Key word(s): Final Results
Siltronic AG: Siltronic closed financial year 2015 successfully and expects
results to develop positively in 2016 (news with additional features)
16.03.2016 / 07:13
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
Siltronic closed financial year 2015 successfully and expects results to
develop positively in 2016
- Sales rose to EUR 931.3 million in 2015 (2014 adjusted: EUR 853.4
million)
- EBITDA improved to EUR 124.0 million (2014 adjusted: EUR 117.7 million)
- EBIT in positive figures at EUR 2.7 million (2014 adjusted: minus EUR
31.6 million)
- Net financial assets of EUR 155.9 million (December 31, 2014: net
financial debt of EUR 24.5 million)
- Results expected to further improve in 2016
Munich, Germany, March 16, 2016 - Siltronic AG, the world's third-largest
manufacturer of hyperpure silicon wafers, had another successful year in
2015. Sales of the TecDAX-listed company increased to EUR 931.3 million in
2015, up 9.1 percent year on year (2014 adjusted: EUR 853.4 million). This
significant rise was mostly due to higher unit sales and a strong US-Dollar
against the Euro.
"2015 was a milestone for Siltronic with the IPO in June. We closed the
financial year successfully despite the fact that the positive trends at
the start of the year did not continue through to the end of the year due
to the economic slowdown in the semiconductor industry. However, we were
able to hit most of the targets that we had set ourselves at the beginning
of 2015.", said Dr. Christoph von Plotho, President & Chief Executive
Officer of Siltronic AG. "We successfully continued our cost-saving
program. The development of new products in collaboration with our
customers helped us to unterpin our technology leadership."
Manufacturing costs, at EUR 768.4 million, were on a par the prior year
despite an increase in production volume. The pronounced increase in sales
had a positive influence on gross profit at EUR 162.9 million (+113
percent) and on gross margin of 17.5 percent (2014: 9.1 percent). The sharp
rise in gross profit was attributable, on the one hand, to successful
cost-cutting measures and, on the other hand, to the weakness of the euro
against the US-Dollar.
The 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 EUR 45 million.
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
amounted to EUR 124.0 million and thus 5.4 percent above the prior-year
figure (2014 adjusted: EUR 117.7 million). The EBITDA margin was 13.3
percent (2014 adjusted: 13.8 percent).
Other operating income and expenses were largely influenced by foreign
exchange effects, especially due to measures to hedge foreign exchange
risks. In 2015, these effects added up to expenses of EUR 45.7 million. In
2014, it was an income of EUR 7.3 million. Without this effect, EBITDA for
2015 would have been EUR 169.7 million with an EBITDA margin of 18.2
percent.
Earnings before interest and tax (EBIT) were also positive at EUR 2.7
million (2014 adjusted: minus EUR 31.6 million).
The considerable improvement in EBIT had a positive effect on ROCE (Return
on Capital Employed) which advanced from minus 2.1 percent to plus 0.4
percent.
The financial result came to minus EUR 12.2 million (2014: minus EUR 7.7
million) and was dominated by the expense for discounting of pensions.
Income taxes amounted to EUR 10.6 million in 2015.
Siltronic was able to improve net result for the period by 26 percent, from
EUR minus 27.0 million in 2014 to EUR minus 20.1 million in 2015.
Earnings per share came to minus EUR 0.50, an improvement of 22 percent
compared with the previous year.
Equity of the company stood at EUR 497.3 million mainly due to the IPO in
June 2015. This equals an equity ratio of 47.8 percent.
Siltronic invested EUR 75 million in property, plant and equipment and in
other non-current intangible assets in 2015. Capital expenditure serves to
meet the increasingly complex specifications of customers. One of the
measures is, for example, to substitute obsolescent crystal pullers against
state-of-the-art ones.
Free cash flow was significantly positive at EUR 37.4 million in 2015,
compared to adjusted EUR 86.3 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 EUR 155.9 million as of December 31,
2015, compared with net financial debt of EUR 24.5 million as of December
31, 2014.
Comments on Q4 2015
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. Sales for the period October to December 2015
therefore amounted to EUR 215.3 million, down by 3.5 percent on the strong
corresponding prior-year period (Q4 2014: EUR 223.2 million).
At EUR 23.2 million, EBITDA for the fourth quarter of 2015 was down year on
year (Q4 2014: EUR 39.2 million). The EBITDA margin for the period from
October to December 2015 was thus 10.8 percent (Q4 2014: 17.6 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 EUR 10.5 million (Q4 2014:
expenses of EUR 0.2 million).
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
two quarters of 2016.
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. It is not possible to make a prediction on price
development for the second half of 2016.
The company expects sales for Q1 2016 to be at approximately the same level
as in Q4 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 pick up again.
Siltronic outlook for full year 2016
Siltronic believes there will be interesting opportunities, particularly in
automotive and industrial applications, and expects further growth in these
areas in the medium term.
Siltronic will continue its cost-cutting programs and expects savings of
around EUR 30 million to EUR 35 million in 2016. These activities will
begin to make an impact in the first half of 2016.
The Company anticipates negative exchange rate effects 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 should be
in the range of EUR 10 million to EUR 15 million.
For 2016, Siltronic expects a rise in wafer area in the single-digit
percentage range and believes that the product mix will be roughly the same
as in the previous year. The proportion of 200 mm wafers, which are made
from float-zone crystals, is likely to continue to increase.
Sales for 2016 as a whole are expected to be slightly below the level in
2015.
EBITDA margin should slightly rise. In the medium term, the Company seeks
to achieve an EBITDA margin target of 20 percent which it does not expect
to already achieve in 2016.
Siltronic expects ROCE to be in the mid single-digit percentage range in
2016.
The Company is planning on capital expenditure of around EUR 80 million in
2016, most of which will be spent on state-of-the-art crystal pullers and
further automation at the production sites. The new crystal pullers will
enable Siltronic to make further improvements to the crystals' properties,
while increased automation will significantly increase productivity.
Free cash flow is anticipated to be well into positive territory in 2016,
but below the 2015 figure. This cashflow is impacted due to the fact that
the balance of advance payments received from customers is to decline by
approximately EUR 20 million.
Siltronic expects earnings per share to be slightly positive in fiscal year
2016.
Conference call for analysts and investors
Siltronic AG's Executive Mangement will conduct a conference call with
analysts and investors (in English only) on March 16, 2016 at 3pm (CET).
This call will be streamed via the internet. The audio webcast call will be
available live and on-demand on Siltronic's homepage at
http://www.siltronic.com/int/de/investor_relations/reports/2015/annual_rep
ort_2015/annual_report_2015.jsp.
The investor presentation (in English only), the Annual Report, the press
release and an Excel-file with the most important key figures are also
published on the Siltronic homepage.
Upcoming events
April 28, 2016 Quarterly Reporting Q1 2016
May 12, 2016 Ordinary Annual Shareholder Meeting
July 28, 2016 Quarterly Report Q2 2016
October 27, 2016 Quarterly Reporting Q3 2016
Contact:
Petra Müller
Director of Investor Relations & Communications
Tel: +49 (0)89 8564 3133
Email: [email protected]
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.
This press release is also available in German. If there are differences
between the two, the German version takes priority. Please note that slight
differences may arise as a result of the use of rounded amounts and
percentages.
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=VAURMVYMTM
Document title: Press Release 'Successful year for Siltronic in 2015'
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16.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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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: [email protected]
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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