Siltronic AG
Siltronic AG plans IPO before summer break 2015
Siltronic AG / Key word(s): IPO NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN. Munich, 15 May 2015 – Siltronic AG (“Siltronic”), the world’s third largest producer of hyperpure silicon wafers for the semiconductor industry, is preparing an initial public offering (“IPO”) in the regulated market (Prime Standard) of the Frankfurt Stock Exchange. As part of the offering, Siltronic plans to issue new shares in a capital increase. In addition, WACKER Group (“WACKER”) intends to sell existing shares. The shares will be offered publicly in Germany and Luxembourg to private and institutional investors. Outside of these countries, shares will be offered for subscription by way of private placements. Siltronic intends to use net proceeds from the capital increase, in particular, to reduce debt in order to boost the company’s financial flexibility. Depending on the stock market environment, the IPO should be completed before the summer break 2015. After the IPO, WACKER expects to still hold a majority share in Siltronic for the time being. However, in the medium term, WACKER plans to dispose of its majority holding. Siltronic is excellently positioned in an attractive market As the world’s third largest producer of hyperpure silicon wafers for the semiconductor industry, and the largest manufacturer outside of Japan, Siltronic is well positioned in a growing market. Siltronic not only benefits from growth in digitalisation, but also from entirely new markets (e.g. Internet of Things, Industry 4.0, Big Data). As a result of these developments, the company is less and less dependent on the cyclical PC industry. Silicon wafers form an essential part of almost all electronic components. They are indispensible in a broad range of everyday objects such as smartphones, laptops and cars, or even as part of digitally controlled manufacturing processes, for example. When it comes to technology and quality, Siltronic has in recent years been able to further strengthen its position in this dynamic environment as one of the leaders in the market. Today, the company is an established supplier to all of the top 20 leading semiconductor silicon wafer consumers in the global semiconductor industry. The company aims to build on this strong position in the future, relying on an excellent management team to do so: with the stewardship of Dr Christoph von Plotho, Siltronic’s CEO, and Rainer Irle, its CFO, the company is led by one of the most experienced management teams in the industry and benefits from highly qualified employees. With headquarters in Munich, Siltronic employs around 4,100 staff members worldwide and operates four production sites in the United States, Europe and Asia. All facilities are strategically located near highly educated work forces and in close proximity to customers. The company’s production sites for 200-mm and 300-mm wafers in Asia (Singapore) are some of the largest and most modern in the world, bolstering Siltronic’s leading position. Its presence on three continents enables close collaboration with customers on product design and development. This also allows the company to ensure ever shorter response times for its customers. Extensive improvement initiatives in recent years have paid off Siltronic has been able to increase its competitiveness considerably in recent years: three of Siltronic’s previous seven production sites were closed down over the past ten years. At the same time, the company expanded its market share to a current 14 per cent (in revenue terms, source: Gartner). Through a stringent cost reduction roadmap, Siltronic succeeded in reducing its costs in 2013 by over EUR 80 m compared to the previous year. In 2014, further savings of some EUR 55 m compared to 2013 were achieved. In the past five years alone, Siltronic managed to almost double productivity in its 300-mm wafer production in Germany, while cutting variable production costs by over 40 per cent. “We have worked hard over recent years to prepare Siltronic for independence,” says Dr Christoph von Plotho, CEO of Siltronic AG. “Our planned IPO comes at a time when we are positioned in all aspects for a successful, independent future.” Developments in Siltronic’s financial figures are a strong indication that the company’s initiatives to reduce costs and increase productivity will bring about sustainable benefits. In fiscal year 2014, Siltronic achieved sales revenues of EUR 853.4 m (adjusted for the full consolidation of a joint venture previously accounted for using the equity method). EBITDA (adjusted for the full consolidation of a joint venture previously accounted for using the equity method) amounted to EUR 117.7 m. Siltronic began the new fiscal year with a strong increase in sales: in the first quarter of 2015, Siltronic’s sales reached EUR 238.7 m. Compared to the adjusted sales of the first quarter of 2014 (EUR 203.8 m), this equates to an increase of around 17 per cent. Siltronic’s adjusted EBITDA was more than double the same period in the previous year. From January to March 2015, this totaled EUR 40.1 m (Q1 2014: adjusted EUR 17.1 m). Significantly higher sales volumes compared to the previous year, as well as favourable exchange rates, were decisive factors in these positive developments. Siltronic is benefitting considerably from the strong dollar. Currently, the company supplies mainly customers outside of Europe, meaning that around two-thirds of Siltronic’s sales are invoiced in dollars. At an exchange rate of 1.10 dollars to the euro, Siltronic would have generated the equivalent of EUR 100 m more revenue in 2014, assuming all other variables were unchanged. The effects of this are reflected in the results from the past two quarters: in the first quarter of 2015, net profit was EUR 1.9 m and EBITDA margin increased to 16.5 per cent (Q1 2014: net loss of EUR 3.0 m and EBITDA margin of 8.4%). Siltronic is very well-positioned for continued success Given this very encouraging starting point and the attractive industry backdrop, Siltronic can look forward to a bright future. Ever-increasing digitalisation offers further potential for growth in the wafer industry. This would be stimulated if current developments in exchange rates continue. With clearly defined measures for further cost optimisation, Siltronic is in a strong position to increase productivity and make the most of the current potential for growth. Initial public offering expected before summer break Depending on the stock market environment, the publication of the share prospectus and stock exchange listing are planned for completion before the summer recess 2015. Citi and Credit Suisse are accompanying the IPO as joint global coordinators and joint bookrunners. COMMERZBANK, HSBC and Unicredit Bank AG have been mandated co-lead managers. Further information is available from: Siltronic investor relations contact: Company profile: This press release 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. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of WACKER’s and Siltronic’s management, of which many are beyond our control. These are subject to a number of risks and uncertainties. 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. Neither Siltronic or Wacker intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. This announcement is not and does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities in the United States of America, Germany or any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). Any public offering of securities to be made in the United States of America would be made by means of a prospectus that could be obtained from Siltronic AG and that would contain detailed information about the company and management, as well as financial statements. There will be no public offer of the securities in the United States of America. This press release is not a prospectus. Investors should not purchase or subscribe for any shares referred to in this press release except on the basis of information in the prospectus to be issued by the company in connection with the offering of such shares. Copies of the prospectus will, following approval of the German Financial Supervisory Authority (BaFin) and publication, be available free of charge from Siltronic AG or on www.siltronic.com. This press release is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons”). Any person who is not a relevant person should not act or rely on this [document/annoucement] or any of its contents. Any investment or investment activity to which this press release relates is available only to relevant persons and will be engaged in only with relevant persons. 2015-05-15 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. Media archive at www.dgap-medientreff.de and www.dgap.de |
357889 2015-05-15 |