Siltronic AG: Siltronic adjusts the forecast of financial year 2019
Ad hoc announcement / Disclosure of an inside information according to Article 17 MAR
Siltronic adjusts the forecast for financial year 2019
Germany, Munich, June 17, 2019 - Siltronic AG currently sees a continuing slowdown of the semiconductor industry, which is driven by geopolitical uncertainties, and the negative impact of export restrictions by the US government against Chinese technology companies. These developments indirectly affect important customers of Siltronic AG, which have therefore significantly reduced orders for the second half of 2019.
Accordingly, the Executive Board of Siltronic AG has decided today on an adjustment of the financial forecast for 2019. With ASPs 2019 in Euro being slightly higher compared to 2018, the Executive Board assumes the following development for the full year 2019:
- Depending on the further market development including exchange rate effects, sales 2019 will be around 10 percent to 15 percent below the previous year (prior: minus 5 percent to minus 10 percent).
- EBITDA margin should be between 30 percent and 35 percent (prior: between 33 percent and 37 percent).
- Net cash flow will be clearly positive but decrease by approximately EUR 180 million (prior: approximately EUR 150 million) compared to 2018. In 2020, net cash flow will significantly increase.
As expected, sales in Q2 2019 will be significantly below Q1. In Q3 2019 a further decrease is expected.
Irrespective of the current market weakness, the Executive Board is convinced that Siltronic AG as technology leader in the wafer industry is well positioned to benefit from the future growth of the technological megatrends like digitization, Big Data, e-mobility and artificial intelligence.
Siltronic AG will report the results for the first half of 2019 on July 25, 2019.
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This adhoc announcement contains statements related to our future business and financial performance and future events or developments involving Siltronic that may constitute forward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Such statements are based on the current expectations and certain assumptions of the Siltronic-management, of which many are beyond the control of Siltronic. These are subject to a number of risks, uncertainties and factors. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siltronic may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siltronic neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
This document includes - in the applicable financial reporting framework not clearly defined - supplemental financial measures that are or may be alternative performance measures. These supplemental financial measures should not be viewed in isolation or as an alternative to measures of Siltronic's net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Explanations of financial measures used can be found in the Annual Report 2018 of Siltronic AG.