Siltronic AG: Siltronic resolves upon forecast of financial year 2019
Ad hoc announcement / Disclosure of an inside information according to Article 17 MAR
Siltronic resolves upon forecast of financial year 2019
Munich, Germany, February 20, 2019 - The Executive Board of Siltronic AG today resolved upon the forecast of financial year 2019. It is expected that the wafer area sold in the first half of 2019 will be significantly lower than in the previous second half of 2018. Due to the expected recovery of the market environment in the second half of 2019 the Executive Board assumes the following development for the full year 2019:
- Sales in the region of the previous year depending on exchange rate effects
- Slightly higher average selling prices compared to 2018
- EBITDA margin slightly below previous year
- Cost positions negatively impacted by tariff increases and by around EUR 20 million from rising electricity costs in Germany
- Depreciation as result of increased capital expenditure around EUR 20 million above previous year
- EBIT due to higher depreciation and around EUR 20 million higher electricity costs in Germany a good 10 percent below previous year
- Research and development (R&D) approximately 5 percent of sales
- Tax rate between 15 and 20 percent
- Financial result on previous year's level
- Investment in capacity, automation and capabilities of around EUR 350 million. Projects already started to be completed on schedule. In 2020, the company plans to decrease investments significantly compared to 2019.
- Net cash flow clearly positive but due to higher investments to decrease by approximately EUR 100 million compared to 2018 with a subsequent significant increase again in 2020
- Earnings per share slightly below previous year
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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 2017 of Siltronic AG.