Siltronic Ag · XETR:WAF

Siltronic — Q3 2022 Earnings Presentation

39 slides from Siltronic's earnings presentation, Oct 28, 2022

Slide 3: Electronics value chain continued to grow in 2021
Electronics value chain continued to grow in 2021 Increasing demand for electronic devices and new applications drive semiconductor growth, which in turn fuels silicon demand Electronics USD 1,850 bn Semiconductors USD 543 bn Semiconductor silicon wafers USD 12.6 bn Silicon for electronic applicatio
Slide 4: Digitalisation continues to drive wafer demand
Digitalisation continues to drive wafer demand 2021 Silicon Wafer Demand by End Markets in % of wafer area Others 17% Smartphones 25% Automotive 12% 15% 21% PCs Industry 10% Servers Source: Siltronic Marketing April 20225 Images: coolhand118/stock.adobe.com, tippapatt/stock.adobe.com, monsitj/stock.
Slide 5: Consolidated market with 5 major wafer manufacturers
Consolidated market with 5 major wafer manufacturers Top 5 wafer producers serve more than 90% of the market across all diameters 13% SK Siltron Siltronic Shin Etsu Sumco GlobalWafers Sources: Siltronic, SEMI SMG Siltronic AG – Investor Presentation Q3 2022 © Siltronic AG October 28, 2022 5
Slide 7: Siltronic at a glance
Siltronic at a glance Key financial figures 2021  Sales: EUR 1,405.4 million  EBITDA: EUR 466.4 million  EBITDA margin: 33.2%  Net cashflow: EUR 1.7 million  Net financial assets: EUR 572.9 million 4 world-class production sites ~ 4,300 employees global scale and reach 50+ years of history in s
Slide 8: International manufacturing network supports strong market position and business focus
International manufacturing network supports strong market position and business focus Freiberg CP* 300 mm 200 Burghausen Portland mm SD* SD* Singapore Central R&D hub in Burghausen 200 High-volume 300 mm fabs in SSW CP* 300 mm SSP mm Germany and Singapore Singapore fabs among the world’s newest & l
Slide 9: A broad product portfolio covers standard and leading-edge requirements of the customers
A broad product portfolio covers standard and leading-edge requirements of the customers Portfolio ~65% Portfolio ~35% ø 300 mm ø 125 – 200 mm + SD Process CZ + FZ Process CZ Standard products Main Applications Products Polished wafer, Epitaxial wafer, Logic, Analog, Discretes, Double side polished
Slide 10: Siltronic is focused on growing 300 mm and attractive 200 mm business
Siltronic is focused on growing 300 mm and attractive 200 mm business. Market growth continued in Q3. Development of Total Wafer Demand per Diameter, in mn 300 mm equivalents per month 9 Strong demand 300 mm & growth 8 7 200 mm 6 SD (pol/epi) 5 4 Stable & 3 attractive 2 1 Mid-term decline 0 2010 201
Slide 11: Top technology position complemented with a high level of quality
Top technology position complemented with a high level of quality A leading position in wafer technology  First supplier to ship 300 mm wafers >400 engineers worldwide  Development of 3 nm design rule started in 2019 (commercialization expected to start in 2022) Approximately 1,870 pending and act
Slide 12: Expansion projects are proceeding according to plan
Expansion projects are proceeding according to plan FabNext in Singapore Project timeline and budget on track Customer LTAs with pre-pay in place for 80 % of FabNext capacity throughout the ramp phase First shipments to customers in early 2024 New crystal pulling hall in Freiberg Project is proceedi
Slide 13: Siltronic Fab Next at Group site in Singapore
Siltronic Fab Next at Group site in Singapore − most modern and cost-efficient 300 mm fab Fab Next − construction well on track − first wafers out in 2024 − R&D hub Burghausen will support expansion on technology topics Investment rationale − strong market demand and long term growth − customers‘ ex
Slide 14: Cost-competitiveness a pre-requisite in the wafer industry
Cost-competitiveness a pre-requisite in the wafer industry Major cost items Continuous cost roadmaps to counter unit cost increases Labor Productivity improvement Depreciation Supply Automation savings Supplies Energy Energy Recycling efficiency Polysilicon Siltronic AG – Investor Presentation Q3 20
Slide 15: Our objectives and values
Our objectives and values Partners Together with our customers and suppliers we build a winning network to create mutual, Quality enduring value We are committed Capabilities to perfection in processes, products, Be one generation ahead – we enable organization and innovation at our cooperation in o
Slide 16: Strategy based on four pillars
Strategy based on four pillars Continuously increasing the value for our stakeholders Grow Ensure Improve Execute by optimizing top technology financial cost reduction product mix and position & performance & roadmaps & increase highest quality cash flow debottlenecking capacities when concepts need
Slide 17: Overview Financials
Overview Financials Adjusted financial figures (EUR million) 2017 2018 2019 2020 2021 Sales 1,177.3 1,456.7 1,270.4 1,207.0 1,405.4 EBIT 235.7 497.7 298.3 192.2 316.9 EBIT margin in % 20.0 34.2 23.5 15.9 22.5 EBITDA 353.1 589.3 408.7 332.0 466.4 EBITDA margin in % 30.0 40.5 32.2 27.5 33.2 Earnings p
Slide 18: Key investment highlights
Key investment highlights Market Position Strategy  Strong market  Best-in-class position in the technology and semiconductor and quality wafer industry Customers Financials  Supplier to all top 20  Profitable sales silicon wafer increase and on- consumers going efficiency improvement Products M
Slide 20: Siltronic Climate Action Program - aligned with Paris agreement to limit global warming to 1.5°C
Siltronic Climate Action Program - aligned with Paris agreement to limit global warming to 1.5°C Siltronic Climate Action Program CSR targets until 2030  Siltronic commits to Science Based Target Reduce specific energy consumption initiative to limit global warming to 1.5°C: by 20%1 Increase waste
Slide 21: Siltronic enables technologies for a sustainable future
Siltronic enables technologies for a sustainable future Resource efficency Sustainable mobility Clean energy Innovation driver for Reduction of transport emissions Wafers as a foundation for environmentally friendly and and carbon footprint to achieve semiconductors enable clean, resource-saving tec
Slide 23: Strong sales growth driven by rising ASP and favourable FX
Strong sales growth driven by rising ASP and favourable FX Sales, in EUR m Ø FX rates Q3 Q4 Q1/22 Q2 Q3 EUR / 1.18 1.14 1.12 1.07 1.01 USD EUR / JPY 130 130 130 136 139 Comments 371.6 376.6 417.0 442.2 474.0  Wafer area sold slightly up q-o-q  Sales prices slightly up q-o-q, significantly up y-o-y
Slide 24: Higher COGS due to FX and inflation
Higher COGS due to FX and inflation Cost of sales, in mn EUR Gross profit, in EUR mn / Gross margin, in % 34.1 32.8 34.6 32.0 32.5 281.4 297.1 309.8 252.6 248.2 135.6 145.1 164.2 119.0 128.4 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Selling, R&D and admin expens
Slide 25: High US-Dollar and Japanese Yen exposure
High US-Dollar and Japanese Yen exposure FX exposure, in % FX sensitivity ~ 7% Sales EBITDA ~ 13% Unhedged 1 USD-/SGD-cent change ~ EUR 13 mn ~ EUR 10 mn ~ 62% ~ 80% 1 JPY change ~ EUR 1.7 mn ~ EUR 1.4 mn Sales Costs USD SGD JPY EUR Other currency effects (mostly hedging), Comments in EUR mn  Stron
Slide 26: Strong EBITDA, supported by FX and higher sales prices
Strong EBITDA, supported by FX and higher sales prices EBITDA, in EUR mn / EBITDA margin, in % Depreciation, in EUR mn 38.2 44.6 36.0 33.1 33.2 143.7 186.0 147.0 170.5 122.9 -39.0 -34.5 -42.3 -44.2 -46.2 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 124.2 131.3 135.9 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 202
Slide 27: Net profit of EUR 109.9 million in Q3 2022
Net profit of EUR 109.9 million in Q3 2022 Net profit, in EUR mn EPS, in EUR 2.15 2.79 3.47 2.66 3.32 93.7 114.8 91.1 109.9 73.6 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Dividend payment, in EUR mn Comments  Net profit of EUR 109.9 mn in Q3 2022; thereof EUR 9
Slide 28: Working capital and trade liabilities show variations due to high Capex projects
Working capital and trade liabilities show variations due to high Capex projects Working capital, in EUR mn, Inventories and contract assets, in EUR mn Working capital ratio to quarterly sales, in % Inventories Contract assets 63 61 65 61 46 263.7 277.9 224.5 246.2 209.5 240.2 230.2 193.7 277.2 290.
Slide 29: Equity exceeds EUR 1.9 bn, with equity ratio of 57%
Equity exceeds EUR 1.9 bn, with equity ratio of 57% Equity, in EUR mn Provisions for pensions, Financial assets and debt, Equity ratio, in % in EUR mn in EUR mn 56.7 56.8 54.9 53.7 55.9 Interest rates IFRS Net financial assets, in EUR mn 2.42% 2.51% 3.22% 4.16% 4.85% USA 605 573 709 597 553 Germany
Slide 30: Net cash flow significantly negative due to ongoing invest in expansion projects
Net cash flow significantly negative due to ongoing invest in expansion projects Operating cash flow (OCF), in EUR mn Prepayments net (PP), in EUR mn including prepayments 273.7 197.0 92.6 100.5 88.5 191.1 122.8 150.0 1.6 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 -9.8 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q
Slide 31: High CAPEX related to expansion projects will increase in H2
High CAPEX related to expansion projects will increase in H2. Investment, in EUR m Comments  Capex guidance 2022: EUR 1,100 mn  two thirds of capex for FabNext  300 mm epi capacity  capabilities for future design rules  expansion of crystal pulling hall in Freiberg  Capex in H2 will be signifi
Slide 32: Three pillars of debt financing for capex projects including FabNext
Three pillars of debt financing for capex projects including FabNext € ESG-linked promissory note loan € 300 mn with terms of five, seven and ten years S$ Local bilateral loan in Singapore Dollar denomination S$ 450 mn, draw-down in 2022 and 2023 € European Investment Bank bilateral loan € 200 m, dr
Slide 34: Siltronic is focused on growing 300 mm and attractive 200 mm business
Siltronic is focused on growing 300 mm and attractive 200 mm business. Market growth continued in Q3. Development of Total Wafer Demand per Diameter, in mn 300 mm equivalents per month 9 Strong demand 300 mm & growth 8 7 200 mm 6 SD (pol/epi) 5 4 Stable & 3 attractive 2 1 Mid-term decline 0 2010 201
Slide 35: Outlook
Outlook  Tailwind from FX continues to drive sales and results  Softness in some end markets lead to risk of inventory corrections in some segments  Long term growth drivers are intact  Structural shortage for 300 mm wafers is expected to persist  Project to become independent of gas supply at
Slide 36: Siltronic Outlook 2022 (as of October 28, 2022)
Siltronic Outlook 2022 (as of October 28, 2022) Sales − 26 to 30 percent increase EBITDA margin − increase to 36 to 38 percent (incl. termination fee) Depreciation − around EUR 185 mn EBIT − significant increase Tax rate − between 10 to 15 percent CapEx − around EUR 1,100 mn (approx. 2/3 for FabNext
Slide 37: Contact and Additional Information
Contact and Additional Information Issuer and Contact Additional Information Siltronic AG ISIN: DE000WAF3001 Einsteinstraße 172 WKN: WAF300 D-81677 München Deutsche Börse: WAF Listing: Frankfurt Stock Exchange Investor Relations: Prime Standard Dr. Rupert Krautbauer email: investor.relations@siltron
Slide 38: Disclaimer
Disclaimer The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations, future financial performance and other forward-looking statements

Siltronic — Q3 2022 Earnings Presentation on 6ix

Siltronic — Q3 2022 Earnings Presentation

Slide 1: Investor Presentation – Q3 2022

Slide 2: Market overview

Slide 3: Electronics value chain continued to grow in 2021

Slide 4: Digitalisation continues to drive wafer demand

Slide 5: Consolidated market with 5 major wafer manufacturers

Slide 6: Company overview

Slide 7: Siltronic at a glance

Slide 8: International manufacturing network supports strong market position and business focus

Slide 9: A broad product portfolio covers standard and leading-edge requirements of the customers

Slide 10: Siltronic is focused on growing 300 mm and attractive 200 mm business

Slide 11: Top technology position complemented with a high level of quality

Slide 12: Expansion projects are proceeding according to plan

Slide 13: Siltronic Fab Next at Group site in Singapore

Slide 14: Cost-competitiveness a pre-requisite in the wafer industry

Slide 15: Our objectives and values

Slide 16: Strategy based on four pillars

Slide 17: Overview Financials

Slide 18: Key investment highlights

Slide 19: Corporate Social Responsibility

Slide 20: Siltronic Climate Action Program - aligned with Paris agreement to limit global warming to 1.5°C

Slide 21: Siltronic enables technologies for a sustainable future

Slide 22: Financials Q3 2022

Slide 23: Strong sales growth driven by rising ASP and favourable FX

Slide 24: Higher COGS due to FX and inflation

Slide 25: High US-Dollar and Japanese Yen exposure

Slide 26: Strong EBITDA, supported by FX and higher sales prices

Slide 27: Net profit of EUR 109.9 million in Q3 2022

Slide 28: Working capital and trade liabilities show variations due to high Capex projects

Slide 29: Equity exceeds EUR 1.9 bn, with equity ratio of 57%

Slide 30: Net cash flow significantly negative due to ongoing invest in expansion projects

Slide 31: High CAPEX related to expansion projects will increase in H2

Slide 32: Three pillars of debt financing for capex projects including FabNext

Slide 33: Outlook 2022

Slide 34: Siltronic is focused on growing 300 mm and attractive 200 mm business

Slide 35: Outlook

Slide 36: Siltronic Outlook 2022 (as of October 28, 2022)

Slide 37: Contact and Additional Information

Slide 38: Disclaimer

Slide 39: Siltronic AG address