Siltronic Ag · XETR:WAF

Siltronic — Q3 2021 Earnings Presentation

39 slides from Siltronic's earnings presentation, Oct 26, 2021

Slide 3: Electronics value chain 2020
Electronics value chain 2020 Increasing demand for electronic devices and new applications drive semiconductor growth, which in turn fuels silicon demand Electronics USD 1,650 bn Semiconductors USD 429 bn Semiconductor silicon wafers USD 11.2 bn Silicon for electronic applications USD 1.2 bn Source:
Slide 4: New applications continue to drive silicon demand
New applications for electronic devices and the infrastructure to support them continue to drive silicon demand Current growth drivers include Data explosion: connected devices, data transport and storage, big data, logic/AI Power: renewable energy, smart grid, battery chargers Automotive: ADAS, inf
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 market across all diameters 17% 13% 13% 25% 32% SK Siltron Siltronic Shin Etsu Sumco GlobalWafers Sources: reported company revenues Q1-Q4 2020, converted to USD million Siltronic AG – Investor Presenta
Slide 7: Siltronic at a glance
Siltronic at a glance Key financial figures 2020  Sales: EUR 1,207.0 million  EBITDA: EUR 332.0 million  EBITDA margin: 27.5%  Net cashflow: EUR 77.4 million  Net financial assets: EUR 499.2 million 4 world-class production sites ~ 3,900 employees global scale and reach 50+ years of history in
Slide 8: International manufacturing network supports strong market position
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
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. Development of Total Wafer Demand per Diameter, in mn 300 mm equivalents per month 8 Strong demand 300 mm & growth 7 200 mm 6 SD (pol/epi) 5 4 3 Stable & attractive 2 1 Mid-term decline 0 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 11: Top technology position complemented with 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 1,850 pending and act
Slide 12: Capital-intensive industry with capex mainly in capabilities and cost savings
Capital-intensive industry with capex mainly in capabilities and cost savings but also in some capacity over the cycle Siltronic Capex, in EUR million  First additional capacity in existing Capabilities, fabs came online in 2019 as capacity & leadtime for so-called „brownfield“ automation invest is
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 to start in 2021 − first wafers out in 2024 − R&D hub Burghausen will support expansion on technology topics − very strong market demand Investment rationale − customer capacity expansio
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 Supplies Supply Automation savings Depreciation Polysilicon Energy Recycling efficiency Energy Siltronic AG – Investor Presentation Q3 20
Slide 15: Our objectives and values
Our objectives and values Partners We build together with our customers and suppliers a winning network to create mutual, Quality enduring value We are committed to Capabilities perfection in processes, products, Be one generation ahead – we enable organization and innovation at our cooperation to P
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: Update on GlobalWafers' tender offer
Update on GlobalWafers‘ tender offer  Completion of merger likely to be delayed due to protracted discussions with authorities on regulatory clearances  Constructive discussions with the authorities on the terms of the outstanding clearances continue 7 approvals received 3 approvals pending  Germ
Slide 18: Overview Financials
Overview Financials Adjusted financial figures Q1-Q3 (EUR million) 2017 2018 2019 2020 2021 Sales 1,177.3 1,456.7 1,270.4 1,207.0 1,028.8 EBIT 235.7 497.7 298.3 192.2 207.6 EBIT margin in % 20.0 34.2 23.5 15.9 20.2 EBITDA 353.1 589.3 408.7 332.0 322.6 EBITDA margin in % 30.0 40.5 32.2 27.5 31.4 Earn
Slide 19: 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 21: Sustainability at Siltronic
Sustainability at Siltronic Clear commitment to sustainability CSR targets until 2030  Claim: We understand sustainability not only as Reduce specific energy consumption responsible action, but also want to generate by 20%1 competitive advantages through our sustainable actions. Increase waste recy
Slide 22: CSR track record 2020
CSR track record 2020 CSR topic Target 2020 Status Notes Reduce energy intensity Energy consumption reduced by 7.1 GWh by 1.5% in 2020 with energy efficiency program Increase waste recycling ratio With a waste recycling ratio of 70.3% target by 1.5% for 2020 was reached. Since base year 2015 recycli
Slide 23: 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 Wafer as a foundation for environmentally friendly and and carbon footprint to achieve semiconductors enable clean, resource-saving tech
Slide 25: Strong sales growth based on higher wafer area sold and slightly increased ASP
Strong sales growth based on higher wafer area sold and slightly increased ASP Sales, in EUR m Ø FX rates Q3/20 Q4 Q1/21 Q2 Q3 EUR / 1.17 1.19 1.21 1.21 1.18 USD EUR / JPY 124 125 128 132 130 Comments 371.6  Wafer area sold up q-o-q 341.1  ASP slightly up q-o-q 299.3 316.1 284.5  Favorable FX q-o
Slide 26: COGS up due to higher wafer area sold
COGS up due to higher wafer area sold Cost of sales, in EUR m Gross profit, in EUR m / Gross margin, in % 30.8 32.0 235.9 252.6 26.1 25.6 28.0 221.0 211.7 227.5 105.2 119.0 78.2 72.8 88.6 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Selling, general and admin expen
Slide 27: High US-Dollar and Japanese Yen exposure
High US-Dollar and Japanese Yen exposure FX exposure, in % FX sensitivity ~ 9% Sales EBITDA ~ 17% unhedged 1 USD-cent change ~ EUR 8.5 million ~ EUR 7 million ~ 65% 1 JPY change ~ EUR 1.8 million ~ EUR 1.4 million ~ 74% Sales Costs USD SGD JPY EUR Other currency effects (mostly hedging), Comments in
Slide 28: Strong EBITDA and EBIT driven by wafer area, ASP and FX
Strong EBITDA and EBIT driven by wafer area, ASP and FX EBITDA, in EUR m / EBITDA margin, in % Depreciation, in EUR m 31.7 33.1 26.8 29.0 23.6 108.0 122.9 80.1 67.2 91.7 -36.5 -38.8 -37.5 -38.4 -39.0 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 EBIT, in EUR m / EBI
Slide 29: Net profit of EUR 74 million in Q3 2021
Net profit of EUR 74 million in Q3 2021 Net profit, in EUR m EPS, in EUR 64.0 73.6 1.83 2.15 58.4 1.67 39.1 40.9 1.08 1.17 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Dividend payment, in EUR m Comments  Net profit of EUR 73.6 million in Q3 2021; thereof EUR 64.5
Slide 30: Trade receivables and inventories high due to increased demand
Trade receivables and inventories high due to increased demand Working capital, in EUR m, Inventories and contract assets, in EUR m Working capital ratio to quarterly sales, in % 73 74 Inventories Contract assets 71 68 65 199.0 209.5 169.3 175.1 188.3 218.1 235.0 232.4 240.2 200.8 Sep 20 Dec 20 Mar
Slide 31: Strong equity ratio and strong net financial assets
Strong equity ratio and strong net financial assets Equity, in EUR m Provisions for pensions, Net financial assets, Equity ratio, in % in EUR m in EUR m 54.9 53.7 54.0 45.4 43.7 Interest rates IFRS USA 2.41% 2.07% 2.77% 2.39% 2.42% GER 0.95% 0.69% 1.11% 1.14% 1.19% 1192 1079 1084 833 872 606 605 567
Slide 32: Largest portion of planned capex in 2021 to be spent in Q4
Largest portion of planned capex in 2021 to be spent in Q4 Investment, in EUR m Comments  Capex guidance 2021 EUR 400m  Project-related high capex in Q4 2021  300 mm epi capacities  capabilities  expansion of crystal pulling hall in Freiberg  Fab Next in Singapore 58,2 52,8 54,1 35,1 36,9 Q3 2
Slide 33: Strong net cash flow year to date
Strong net cash flow year to date Operating cash flow (OCF), in EUR m Customer prepayments net (PP), in EUR m 122.8 104.7 76.6 60.9 10.9 31.4 3.5 1.7 1.6 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 -10.5 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 CF Capex, in EUR m Net cash flow (NCF), in EUR m 70.1 43.3 2
Slide 35: 300 mm demand in 2021 is back on its historical growth trajectory
300 mm demand in 2021 is back on its historical growth trajectory 300 mm market and demand forecast, in k wafers per month 8.000 6.000 4.000 2.000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Siltronic estimate Siltronic AG – Investor Presentation Q3 2021 October 26, 2021 35
Slide 36: Siltronic Outlook 2021 (as of October 26, 2021)
Siltronic Outlook 2021 (as of October 26, 2021) Sales − a good 15 percent above 2020 EBITDA margin − approximately 32 percent Depreciation − around EUR 155m to EUR 160m EBIT − significant increase Tax rate − significantly below 10% CapEx − around EUR 400m (mainly in 300 mm epi, capabilities and expa
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 2021 Earnings Presentation on 6ix

Siltronic — Q3 2021 Earnings Presentation

Slide 1: Investor Presentation – Q3 2021

Slide 2: Market overview

Slide 3: Electronics value chain 2020

Slide 4: New applications continue to drive silicon 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

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

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

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

Slide 12: Capital-intensive industry with capex mainly in capabilities and cost savings

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: Update on GlobalWafers' tender offer

Slide 18: Overview Financials

Slide 19: Key investment highlights

Slide 20: Corporate Social Responsibility

Slide 21: Sustainability at Siltronic

Slide 22: CSR track record 2020

Slide 23: Siltronic enables technologies for a sustainable future

Slide 24: Financials Q3 2021

Slide 25: Strong sales growth based on higher wafer area sold and slightly increased ASP

Slide 26: COGS up due to higher wafer area sold

Slide 27: High US-Dollar and Japanese Yen exposure

Slide 28: Strong EBITDA and EBIT driven by wafer area, ASP and FX

Slide 29: Net profit of EUR 74 million in Q3 2021

Slide 30: Trade receivables and inventories high due to increased demand

Slide 31: Strong equity ratio and strong net financial assets

Slide 32: Largest portion of planned capex in 2021 to be spent in Q4

Slide 33: Strong net cash flow year to date

Slide 34: Outlook 2021

Slide 35: 300 mm demand in 2021 is back on its historical growth trajectory

Slide 36: Siltronic Outlook 2021 (as of October 26, 2021)

Slide 37: Contact and Additional Information

Slide 38: Disclaimer

Slide 39: Siltronic AG