Siltronic Ag · XETR:WAF

Siltronic — Investor Presentation (January 2019)

33 slides from Siltronic's investor presentation, January 2019

Slide 3: 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 Strong 7 demand 300 mm 200 mm SD (pol/epi) & 6 growth 5 4 3 Stable & attractive 2 1 Mid-term decline 0 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 4: Increasing silicon demand supported by growing end applications
Increasing silicon demand supported by 5 growing end applications Wafer demand, in bn cm², 2017/2018 expected growth, in % +13% +5.9% +2% +8% +19% 21.9 76.7 19.4 +3% 72.4 11.1 11.3 9,4 8.8 9.5 33.6 8 6.7 6.5 6.7 5.6 2.5 0 2.1 Mobiles / Desktop, Industrial Solid State Automotive Total market smartpho
Slide 5: Growth in memory driven by SSD, computing and smartphones
Growth in memory driven by SSD, computing and smartphones DRAM growth  Growth in servers  Increase in DRAM density in servers and smartphones  Growing Artificial Intelligence functionality NAND growth  SSD growing with data traffic and HDD substitution Source: Apple.com  NAND growth in smartpho
Slide 6: Automotive growth in all diameters with 300 mm to grow faster
Automotive growth in all diameters with 300 mm to grow faster than other diameters Automotive demand  Infotainment, connectivity and ADAS become standard, driven by consumer request and government mandates  ADAS, infotainment and connectivity require advanced logic as well as large amounts of memo
Slide 7: Semi outlook remains to be bright
Semi outlook remains to be bright Investor key messages  Fundamental NAND growth intact  Smartphone content supported by NAND and CIS development  Significant investment and ramp in new fabs by NAND players  Demand of most automotive semi customers strengthening  We don’t see any significant ch
Slide 9: Q3 sales 5% higher than in previous quarter
Q3 sales 5% higher than in previous quarter Sales, in EUR million Comment 379.8  Positive 361.3  ASP increase y-o-y and q-o-q 328.1 327.4  One-off effect of EUR 8m in 308.1 Q3/2018: conversion of a customer from sea freight to air freight  Slight tailwind from USD q-o-q  Negative  Headwind fro
Slide 10: EBITDA and EBITDA-margin further up
EBITDA and EBITDA-margin further up EBITDA margin in %; EBITDA in EUR million Comment  Positive 42.2 40.4  Higher ASP y-o-y and q-o-q 36.8 37.4 34.6  Slight tailwind from USD q-o-q  Slightly lower cost per wafer area q-o-q 160.2 146.0 120.9 122.3 106.5  Negative  Headwind from USD y-o-y (but n
Slide 11: Financials improved strongly over the last years
Financials improved strongly over the last years Adjusted1 financial Q1-Q3 / figures (EUR million) 2013 2014 2015 2016 2017 2018 Sales 875.5 853.4 931.3 933.4 1,177.3 1,068.5 EBIT (87.3) (31.6) 2.7 27.0 235.7 358.8 EBIT margin in % (10.0) (3.7) 0.3 2.9 20.0 33.6 EBITDA 112.6 117.7 124.0 146.0 353.1
Slide 12: Equity further increased due to strong profit for the period
Equity further increased due to strong profit for the period, solid equity ratio stable at about ~48% Balance sheet, in EUR million Sep 30, Dec 31, Comments Equity and Sep 30, Dec 31, Comments Assets 2018 2017 Sep 30, 2018 liabilities 2018 2017 Sep 30, 2018 Non-current 652.4 546.6 Equity 841.7 637.9
Slide 13: Net financial assets exceed EUR 700 million for the first time
Net financial assets exceed EUR 700 million for the first time Net financial assets, in EUR million 716 Comment 603  Prepayments of EUR 171.5m (net) received until 491 September 2018  Total prepayment balance 342 EUR 241.4m 295 Siltronic Investor Presentation ® Siltronic AG 2019 January 2019 13 of
Slide 14: Strong net cash flow despite investments in the future
Strong net cash flow despite investments in the future Capex and NCF, in EUR million Comments 112.4  Net cash flow of EUR 93.0m in Q3 2018  Capex increase in Q3 related to:  capacity expansion in 2019  new crystal pulling hall in 93.0 Singapore 67.1  ongoing automation projects 60.6 61.4 62.8 4
Slide 15: Capex 2018: Investment in the future
Capex 2018: Investment in the future Investment, in EUR million Comments ~260-280 ~20  Capex of EUR ~140m for 70k wafers/month over 2 years Prepayments for 2020 ~50-70  Capex in 2018 includes new crystal pulling hall capacity increase in Singapore to create sufficient crystal pulling Capex crystal
Slide 16: Siltronic Outlook for 2018
Siltronic Outlook for 2018 (as of October 25, 2018) EBITDA margin approximately 40% ROCE clearly higher than in 2017 Net cash flow clearly higher than in 2017 Sales slightly above EUR 1.4bn, depending on FX effects update R&D approx. 5% of sales Cost position negative effect on savings potential due
Slide 17: Appendix
Appendix Siltronic AG 2019 ——————————————————— a 6 Qumd eset 0 - $$
Slide 18: Increasing FX exposure due to higher margins
Increasing FX exposure due to higher margins FX exposure USD exposure 2018 100%  hedging ratio approx. 40% EUR EBITDA excl. profit JPY roughly 1/4  hedging ratio approx. 75% 100% JPY exposure 2018  hedging ratio approx. 30% EUR roughly 2/3 excl. profit USD roughly 2/3  hedging ratio approx. 50%
Slide 19: At FX rates (1.20/130) negative impact on sales and EBITDA
At FX rates (1.20/130) negative impact on sales by approx. EUR 60m and on EBITDA by approx. EUR 40m Change USD, in EUR million Change JPY, in EUR million 1 ct ~ EUR 8.0m sales 1 JPY ~ EUR 2.5m sales ~ EUR 6.5m EBITDA unhedged ~ EUR 2.0m EBITDA unhedged ~ EUR 4.5m EBITDA after hedging ~ EUR 1.0m EBIT
Slide 20: Increasing demand for electronic devices drives semiconductor growth
Increasing demand for electronic devices and new applications drive semiconductor growth, which in turn fuels silicon demand Electronics value chain 2017 Electronics USD 1,504 bn Semiconductors USD 400 bn Semiconductors silicon wafers USD 8.7 bn Silicon for electronic applications USD 1.1 bn Source:
Slide 21: Siltronic is a strong wafer supplier with leading-edge technology
Siltronic is a strong wafer supplier with leading-edge technology Top 5 wafer producers serve more than 90% of market across all diameters 10% 18% 15% 27% 30% SK Siltron Siltronic Shin Etsu Sumco GlobalWafers Sources: reported company revenues FY 2017, converted to USD million Siltronic Investor Pre
Slide 22: Customer base well diversified across all major semiconductor silicon wafer consumers
Customer base well diversified across all major semiconductor silicon wafer consumers Siltronic is a supplier to all top 20 Silicon wafer consumers Siltronic well positioned at all Top 10 customers represent ~73% major Silicon consumers of 2017 revenues Source: Company Information, Siltronic Siltron
Slide 23: International manufacturing network supports market leadership
International manufacturing network supports market leadership and business focus Freiberg CP* 300 mm Germany Portland 200 mm United States Burghausen CP* 300 mm SD* ► Central R&D hub in Burghausen ► High volume facilities for 300 mm in Germany and Singapore ► Among world’s newest & largest SSW CP*
Slide 24: Continuous improvement of key ingot and wafer properties
Continuous improvement of key ingot and wafer properties to meet customers‘ requirements Ingot Wafer doping level mechanical stability edge flatness flatness purity uniformity resistivity surface cleanliness oxygen content shape homogeneity Siltronic Investor Presentation ® Siltronic AG 2019 January
Slide 25: Smartphone growth slowing, however silicon content increasing
Smartphone growth slowing, however silicon content increasing with more memory and other features Smartphone production Wafer area in smartphones 1500 15% 20 15% 1000 10% 10% 10 500 5% 5% 0 0% 0 0% 2015 2016 2017 RF 2018 2015 2016 2017 RF 2018 mn units YoY growth in % bn cm2 YoY growth in % Source:
Slide 26: Major semiconductor devices in the Apple iPhone 8 Plus
Major semiconductor devices in the Apple iPhone 8 Plus (256 GB model) 2 main cameras Front-facing camera  ~ 2 cm² Si  ~ 1 cm² Si SoC Package-on-Package Processor 3GB DRAM  ~ 1 cm² Si  ~ 2.5 cm² Si Flash NAND (256 GB)  ~ 9 cm² Si Broadband processor  ~ 1 cm² Si Some additional features:  3 Pow
Slide 27: Car shipments growing slowly, silicon content in automotive to grow
Car shipments growing slowly, silicon content in automotive estimated to grow by 7% (CAGR 2017-2022) Worldwide passenger car shipments Wafer area in automotive 80 10% 10% 9000 6000 40 5% 5% 3000 0 0% 0 0% 2017 RF RF RF RF RF 2017 RF RF RF RF RF 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 mn un
Slide 28: Within a car, most silicon is used for powertrain, infotainment and safety
Within a car, most silicon is used for powertrain, infotainment and safety 2018 silicon demand in automotive, in % Other Automotive Chassis & Powertrain Safety (incl. ADAS) Infotainment and Connectivity Body & Convenience  300 mm  200 mm  SD 1 ADAS = advanced driver assistance system Source: Data
Slide 29: Silicon demand for NAND driven by solid-state drives and smartphones
Silicon demand for NAND driven by growing demand for solid- state drives and increasing storage in smartphones NAND silicon area demand by applications, bn cm² p.a. 20 16 12 8 4 0 2014 2016 2018 2020 2022 Solid-State Drives Smartphones Memory Cards Tablet Computers Others Source: Data based on IHS M
Slide 30: NAND is the growth engine in the memory sector
NAND is the growth engine in the memory sector - silicon area for DRAM only shows moderate growth Split of memory silicon area market by DRAM and NAND, bn cm² p.a. 30 20 10 0 2014 2016 2018 2020 2022 DRAM NAND Source: Data based on IHS Markit, Technology Group, Semiconductor Silicon Demand Forecast
Slide 31: Contact and Additional Information
Contact and Additional Information Issuer and Contact Additional Information Siltronic AG ISIN: DE000WAF3001 Hanns-Seidel-Platz 4 WKN: WAF300 D-81737 München Deutsche Börse: WAF Listing: Frankfurt Stock Exchange Investor Relations: Prime Standard Petra Mueller email: petra.mueller@siltronic.com Tel.
Slide 32: 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 — Investor Presentation (January 2019) on 6ix

Siltronic — Investor Presentation (January 2019)

Slide 1: Siltronic Investor Presentation January 2019

Slide 2: Market Update

Slide 3: Siltronic is focused on growing 300 mm and attractive 200 mm business

Slide 4: Increasing silicon demand supported by growing end applications

Slide 5: Growth in memory driven by SSD, computing and smartphones

Slide 6: Automotive growth in all diameters with 300 mm to grow faster

Slide 7: Semi outlook remains to be bright

Slide 8: Q3 2018 Financials

Slide 9: Q3 sales 5% higher than in previous quarter

Slide 10: EBITDA and EBITDA-margin further up

Slide 11: Financials improved strongly over the last years

Slide 12: Equity further increased due to strong profit for the period

Slide 13: Net financial assets exceed EUR 700 million for the first time

Slide 14: Strong net cash flow despite investments in the future

Slide 15: Capex 2018: Investment in the future

Slide 16: Siltronic Outlook for 2018

Slide 17: Appendix

Slide 18: Increasing FX exposure due to higher margins

Slide 19: At FX rates (1.20/130) negative impact on sales and EBITDA

Slide 20: Increasing demand for electronic devices drives semiconductor growth

Slide 21: Siltronic is a strong wafer supplier with leading-edge technology

Slide 22: Customer base well diversified across all major semiconductor silicon wafer consumers

Slide 23: International manufacturing network supports market leadership

Slide 24: Continuous improvement of key ingot and wafer properties

Slide 25: Smartphone growth slowing, however silicon content increasing

Slide 26: Major semiconductor devices in the Apple iPhone 8 Plus

Slide 27: Car shipments growing slowly, silicon content in automotive to grow

Slide 28: Within a car, most silicon is used for powertrain, infotainment and safety

Slide 29: Silicon demand for NAND driven by solid-state drives and smartphones

Slide 30: NAND is the growth engine in the memory sector

Slide 31: Contact and Additional Information

Slide 32: Disclaimer

Slide 33: Siltronic AG