Siltronic AG has achieved its annual targets for 2023 according to preliminary, unaudited figures. The company achieved preliminary sales of EUR 1,514 million, a decrease of approximately 16 percent compared to the record sales of EUR 1,805 million in 2022. The target for the year was a decline in sales of 15 to 17 percent.

The main reason for the year-on-year decline was significantly weaker demand from the semiconductor industry due to increased inventories in the value chain. Since Siltronic nevertheless succeeded to keep sales prices stable, a preliminary EBITDA of EUR 434 million was achieved in 2023, resulting in a continued solid EBITDA margin of 29 percent. This was also within the expected target range of 28 to 30 percent.

The EBITDA for the record year 2022 amounted to EUR 672 million, though it should be noted that this included a one-off compensation payment of EUR 50 million as a result of the failed tender offer by GlobalWafers. The adjusted comparative figure for the EBITDA margin in 2022 was therefore 34.4 percent.

“We achieved our 2023 targets in a challenging environment. In particular, the EBITDA margin of 29 percent is very solid given the sharp decline in sales. The year 2023 was also marked by the construction of our new 300 mm fab in Singapore, which is on schedule to start operations at the beginning of 2024. The new state-of-the-art fab will contribute to Siltronic’s significant profitable growth in the medium and long term,” commented Dr. Michael Heckmeier, CEO of Siltronic AG.

Compared to the previous year, cost of sales decreased at a slower rate than sales due to a reduction in fixed costs, higher depreciation and inflationary cost increases, particularly for raw materials, supplies and labor.

Preliminary earnings before interest and taxes (EBIT) were also significantly lower than in the previous year at EUR 231 million (2022: EUR 496 million, adjusted: EUR 446 million). Accordingly, the preliminary EBIT margin was 15 percent compared to an adjusted 24.7 percent in 2022.

Solid financial situation despite record investments

In the reporting year, Siltronic made record investments in property, plant and equipment and intangible assets of preliminary EUR 1,316 million (2022: EUR 1,074 million). This was mainly due to the new 300 mm wafer fab in Singapore and the expansion of the crystal pulling hall in Freiberg.

Considering the high future investments mentioned above, the preliminary net cash flow of EUR -664 million in 2023 is in line with expectations (2022: EUR -395 million). The high cash payments for capex and the dividend payment of EUR 90 million resulted in net financial debt of EUR 356 million by December 31, 2023 (2022: net financial assets of EUR 374 million).

Business development in Q4 2023

As announced, preliminary sales of EUR 357 million in Q4 2023 were slightly above the level of Q3 2023 (EUR 349 million). As expected, at a preliminary EUR 91 million, the EBITDA for Q4 2023 did not reach the level of the previous quarter (EUR 99 million), mainly due to a lower foreign exchange result, which is included in the balance of other operating income and expenses.

The preliminary quarterly EBIT amounted to EUR 37 million (Q3 2023: EUR 46 million). The EBIT margin reached 10 percent (Q3 2023: 13.3 percent). Despite increased investments, the preliminary net cash flow for Q4 2023 improved significantly to EUR -32 million (Q3 2023: EUR -215 million). This was mainly due to investment grants received in Q4 2023 and positive working capital effects.

Upcoming events

The audited financial results and the Annual Report 2023 will be published on March 12, 2024. On this day, the Management Board of Siltronic AG will hold a conference call with analysts and investors (in English only) at 10:00 am (CET). This call will be streamed over the Internet. The audio webcast will be available live and on demand on Siltronic’s website.

  • March 12, 2024        Publication of the Annual Report 2023
  • May 2, 2024             Quarterly Statement Q1 2024
  • May 13, 2024           Annual General Meeting
  • July 25, 2024           Half Year Report 2024
  • October 24, 2024     Quarterly Statement Q3 2024

Original – Siltronic