SILTRONIC AG The company currently expects a significant increase in wafer area sold in 2021. However, the strong Euro is expected to create a significant headwind for sales and earnings in 2021. The ASP in invoice currency has stabilized. Another positive earnings contribution from the cost-saving programs is expected in 2021. These should significantly overcompensate for the effects of inflation and salary increases.
The company currently expects wafer area sold to increase by approximately eight to twelve percent y-o-y. Siltronic is assuming exchange rates of 1.23 for the Euro/US dollar and 128 for the Euro/Yen for 2021. An exchange rate within a range of 1.20 to 1.25 for the Euro versus the US dollar in 2021 would reduce sales by approximately EUR 50 to 80 million (including a weaker Japanese yen). Assuming relatively stable ASP in invoicing currency and depending on further market development and the exchange rate, a sales increase in the mid to high single-digit percentage range is expected.
The EBITDA margin should show a slight y-o-y increase. The positive effects of higher volumes and the contribution to earnings from the cost reduction programs on unit costs will be offset by the strong euro.
Despite higher depreciation, Siltronic expects a significant increase in EBIT. With the improved earnings situation, net cash flow will also improve slightly despite higher capital expenditures.
The tax rate is expected to be well below ten percent. Earnings per share should increase slightly.
The company plans to invest around EUR 250 million in 2021. The focus will once again be on expanding epi capacity and extensive measures to improve capabilities for new design rules. This also includes the expansion of a building for new crystal pulling equipment, which will replace older equipment.
As a result of the investments made, depreciation will increase to approximately EUR 155 million to 160 million.
"We are aware that 2021 will again be challenging. The further development of the Corona pandemic and the economic impact are difficult to predict. However, with mass vaccinations starting, there is definitely hope for a return to a more normal life for all of us. 2021 certainly also offers additional opportunities for the technology industry. Rarely have so many trends had such a transformative effect as in 2020. For many companies, the public sector and private individuals, the crisis was a wake-up call as far as future issues such as digitization and innovation are concerned. This wake-up call will last for a long time and accompany us on our growth path," said von Plotho.
Siltronic AG - Financial figures 2020
Profit and loss statement
Q4 Q3 Q2 Q1 Q4
In EUR million 2020 2019 2020 2020 2020 2020 2019
Sales 1,207.0 1,270.4 284.5 299.3 323.1 300.1 304.3
EBITDA 332.0 408.7 67.2 80.1 100.4 84.2 90.0
EBITDA margin % 27.5 32.2 23.6 26.8 31.1 28.1 29.6
EBIT 192.2 298.3 28.4 43.6 66.9 53.3 56.7
EBIT margin % 15.9 23.5 10.0 14.6 20.7 17.8 18.6
Result for the period 186.8 261.0 40.9 39.1 60.8 46.0 45.4
Earnings per share EUR 5.36 7.52 1.17 1.08 1.80 1.32 1.21
Capital expenditure and net cash flow
Capital expenditure in property, plant and equipment, and
intangible assets 187.6 363.0 58.2 35.1 48.3 46.0 96.4
Net cash flow 77.4 81.3 -18.9 28.6 26.7 40.9 8.9
Statement of financial position
In EUR million Dec. 31, 2020 Dec. 31, 2019
Total assets 1,919.4 1,945.0
Equity 871.8 930.2
Equity ratio % 45.4 47.8
Net financial assets 499.2 588.9 Conference call for analysts and investors
The Executive Board of Siltronic AG will hold a conference call with analysts and investors on March 9, 2021 at 10:00 a.m. (CET). The conference will be streamed on the Internet. The audio webcast will be available live and on-demand on Siltronic's website.
The current investor presentation, the annual report 2020 and the press release are also published on the Siltronic website.
Financial Calendar: April 29, 2021 Annual General Meeting May 7, 2021 Q1 2021 quarterly statement July 28, 2021 Interim Report 2021 October 26, 2021 Q3 2021 quarterly statement
Contact: Petra Müller Head of Investor Relations & Communications Tel.: +49 (0)89 8564 3133 Email: investor.relations@siltronic.com
Company profile:
Siltronic is one of the world's largest manufacturers of hyperpure silicon wafers and partner to many leading semiconductor companies. The company operates production sites in Asia, Europe and the USA. Siltronic develops and manufactures silicon wafers in diameters of up to 300 mm. Silicon wafers form the basis for modern microelectronics and nanoelectronics and are a key component in semiconductor chips driving computers, smart phones, navigation systems and many other applications. Siltronic AG employs around 3,800 people and has been a stock-listed company in Germany (Prime Standard) since 2015. The Siltronic AG stock is listed on both the MDAX and TecDAX.
Disclaimer
This press release contains forward-looking statements based on assumptions and estimates made by the Executive Board of Siltronic AG. These statements can be identified by wording such as "expect", "want", "anticipate", "intend", "plan", "believe", "strive", "estimate", and "will" or similar terms. Although we assume that the expectations contained in these forward-looking statements are realistic, we cannot guarantee that they will prove to be correct. These assumptions may contain risks and uncertainties that could cause the actual figures to differ considerably from the forward-looking statements. Factors that can cause such discrepancies include changes in the macroeconomic and business environment, changes in exchange rates and interest rates, the introduction of products that compete with our own products, a lack of acceptance of new products or services, and changes in corporate strategy. Siltronic does not intend to update these forward-looking statements, nor does it assume any responsibility to do so.
This press release includes supplementary financial indicators that either are or may be so-called alternative performance indicators that are not clearly defined in the relevant financial reporting framework. In assessing the financial position and performance of Siltronic, these supplementary financial indicators should not be used in isolation or as an alternative to those presented in the consolidated financial statements and determined in accordance with the relevant financial reporting framework. Other companies that present or report alternative performance indicators with similar names may calculate them differently. Explanations of the key financial figures used are available in the Annual Report of Siltronic AG.
Due to rounding, some of the figures presented in this press release as well as in other reports may not add up exactly to the stated totals and percentages presented may not accurately reflect the absolute values to which they relate. -----------------------------------------------------------------------------------------------------------------------
2021-03-09 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, Financial/Corporate News and Press Releases. Archive at www.dgap.de -----------------------------------------------------------------------------------------------------------------------
Language: English
Company: Siltronic AG
Einsteinstr. 172 - Tower B / Blue Tower
81677 Munich
Germany
Phone: +49 89 8564 3133
Fax: +49 89 8564-3904
E-mail: investor.relations@siltronic.com
Internet: www.siltronic.com
ISIN: DE000WAF3001
WKN: WAF300
Indices: MDAX, TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf,
Stuttgart, Tradegate Exchange
EQS News ID: 1173934
End of News DGAP News Service
=------------ 1173934 2021-03-09
(END) Dow Jones Newswires
March 09, 2021 00:58 ET (05:58 GMT)
