Slide 1: FY 2023 and Beyond - Preparing for the Market Turnaround
FY 2023 AND BEYOND- PREPARING FOR THE MARKET TURNAROUND Dr. Michael Heckmeier & Claudia Schmitt March 12, 2024 © Siltronic AG
Slide 2: Klaus Buchwald joins Siltronic from August onwards
KLAUS BUCHWALD JOINS SILTRONIC FROM AUGUST ONWARDS Background o Born in 1968 o Graduated in mechanical and industrial engineering o 21 years at Infineon, recently Senior Vice President Operations of the "Green Industrial Power" division and Executive Vice President Corporate Supply Chain o Four year
Slide 3: Key messages of today's call
KEY MESSAGES OF TODAYS CALL 2023: Mission accomplished 2024: A year with with solid margin despite weak uncertainties demand environment Ready to harvest market Ambitions for 2028 unchanged: upswing driven by megatrends Sales > EUR 2.2 bn EBITDA-margin in the high 30’s 3 Siltronic AG - FY 2023 Confe
Slide 4: FY 2023 fully in line with guidance
FY 2023 FULLY IN LINE WITH GUIDANCE 1,514 Sales in EUR mn 1,316 Capex in EUR mn -16% vs 2022, expected: -15 to -17% In line with indication of EUR 1.3 bn 28.7 EBITDA Margin in % -664 Net Cash Flow in EUR mn Expected: 28 to 30% Due to record investments 6.15 Earnings per share Stable ASP EUR 1.20 div
Slide 5: Financials FY 2023
FINANCIALS FY 2023 Solid performance in a challenging environment 5 Siltronic AG - FY 2023 Conference call - March 12, 2024 © Siltronic AG
Slide 6: No surprises in Q4 and 2023 figures
NO SURPRISES IN Q4 AND 2023 FIGURES Profit & Loss, in EUR million Comments Sales 2023 2022 Q4-2023 Q3-2023 o 2023 -16% yoy, volume significantly down, but stable ASP Sales 1,513.8 1,805.3 356.6 349.1 o Q4 +2% qoq, product mix slightly improved Gross profit 372.2 615.4 79.2 75.7 EBITDA (margin) o 202
Slide 7: Strong balance sheet quality – solid financial KPIs
STRONG BALANCE SHEET QUALITY – SOLID FINANCIAL KPI`S Balance Sheet Composition Comments1 Dec 31, 2023 Dec 31, 2022 Fixed assets EUR +1,097 mn o Increase to EUR 3.5 bn due to high capex Assets, in EUR mn 4,504 4,051 Working Capital EUR -155 mn Fixed Assets 77% 58% o Decrease in receivables due to low
Slide 8: Capex peak in 2023 to enable future growth
CAPEX PEAK IN 2023 TO ENABLE FUTURE GROWTH Investment, in EUR mn Comments 1,316 o Capex 2023 for FabNext, extension of crystal pulling hall in Freiberg (inaugurated in September) and steady state capex 1,074 o Capex 2024 less than EUR 600 mn o Increased focus on capex management o Future FabNext cap
Slide 9: Net financial assets turning into net financial debt due to investments
NET FINANCIAL ASSETS TURNING INTO NET FINANCIAL DEBT DUE TO INVESTMENTS INTO THE FUTURE Net Financial Debt, in EUR mn Comments Change in net financial position EUR -730 mn2 Net financial assets o Solid operating cash flow 374 Dec 31, 2022 o Peak capex related cash outflow of EUR 1.199 mn, cash Opera
Slide 10: Options for refinancing to be examined
OPTIONS FOR REFINANCING TO BE EXAMINED Debt financing instruments, in EUR million Comments Financing of investments o Own cash and future operating cashflows o Customer prepayments SGP Syn loan o Debt financing 309 380 • Currently four financing instruments in place, draw down of Syn loan planned in
Slide 11: Ambitious targets keep us going
AMBITIOUS TARGETS KEEP US GOING Siltronic follows a clear sustainability strategy 11 Siltronic AG - FY 2023 Conference call - March 12, 2024 Company Confidential © Siltronic AG
Slide 12: Sustainability dashboard tracking progress towards transformation
SUSTAINABILITY DASHBOARD TRACKING PROGRESS TOWARDS TRANSFORMATION Climate – Scope 1+2 Water usage 2030: -42% reduction of 2030: -20% reduction of CO2 emissions1 water intensity2 2023: -22% 2023: -1% Energy Circular economy 2030: -20% energy 2030: +25% increase in intensity reduction2 waste recycling
Slide 13: Outlook 2024 and beyond
OUTLOOK 2024 AND BEYOND Timing of market turnaround still uncertain 13 Siltronic AG - FY 2023 Conference call - March 12, 2024 © Siltronic AG
Slide 14: Slight increase in wafer demand expected for 2024
SLIGHT INCREASE IN WAFER DEMAND EXPECTED FOR 2024 Consumption of wafers by end use Growth in demand for wafer area 2023, in % 2024 vs. 2023, in % Smartphones 22 4 AI Server up to 8x more wafer PCs 14 2 area Server 13 19 Industrial 16 5 EV Automotive 17 12 60-100% more wafer area Others1 19 7 20% Tot
Slide 15: Total inventories for memory and logic have peaked in 2023, power increasing
TOTAL INVENTORIES FOR MEMORY AND LOGIC HAVE PEAKED IN 2023, POWER INCREASING Demand by segments in % of total Semiconductor inventories demand in 20231 per sector2 Inventory levels Roughly 1/3 Memory 34% decreasing slowly; as a rule of thumb is DRAM better than NAND the split between the three segme
Slide 16: CAGR of 4–5% expected on average with highest growth in 300 mm
CAGR OF 4–5% EXPECTED ON AVERAGE WITH HIGHEST GROWTH IN 300 mm Development of total wafer demand per diameter in mn 300 mm equivalents per month1 and CAGR per diameter in %2 9 300 mm +6% strong growth 8 7 6 5 200 mm 4 slightly increasing +1% 3 6% 2 1 -2% 0 ≤150 mm 2010 2013 2016 2019 20222023 2023 2
Slide 17: Investment peak FabNext behind us
INVESTMENT PEAK FABNEXT BEHIND US Project Status Commercial Facts Advantages: On track, on budget High automation, high epi share, economies of scale, state of the art Focus on qualifying customers High LTA share Ramp speed for 2024 as Ramp costs will burden profitability communicated, further decis
Slide 18: Outlook 2024 - High inventories still burden business development
OUTLOOK 2024 - HIGH INVENTORIES STILL BURDEN BUSINESS DEVELOPMENT Sales EBIT In the region of 2023 Significantly below 2023 EUR/USD 1.10, stable ASP's EBITDA Margin Capex In the region of 2023 w/o ramp cost, below EUR 600 mn ramp cost burden up to 3%-points Depreciation Net cash flow Nearly doubled
Slide 19: We confirm our mid-term ambition for 2028
WE CONFIRM OUR MID-TERM AMBITION FOR 2028 Our global production network is ready – our highly automated site in Singapore is ready for the ramp We are a technological leader and will stay ahead of the curve We aim for a strong sales and EBITDA margin upswing due to our strategical focus: 300 mm espe
Slide 20: Financial Calendar and Investor Relations Contacts
Financial Calendar and Events March 19, 2024 May 02, 2024 May 13, 2024 May 15, 2024 May 22, 2024 Jefferies Pan-European Quarterly Statement Annual General Stifel Berenberg Mid-Cap Conference, Q1 2024 Meeting German Corporate European Conference, London, UK Conference, Frankfurt New York, USA Investo