Siltronic Ag · XETR:WAF
Siltronic — Investor Presentation (July 2024)
33 slides from Siltronic's investor presentation, Jul 26, 2024
Slide 1: Our Path to Growth and Value Creation
OUR PATH TO GROWTH AND VALUE CREATION Investor Presentation July 2024 © Siltronic AG
Slide 2: Siltronic at a Glance
SILTRONIC AT A GLANCE 4,500 50+ employees years of history worldwide in silicon technologies 4 Supplier world-class to top production sites semiconductor producers 1.5 29 billion EUR percent sales in 2023 EBITDA-Margin 2 Investor presentation © Siltronic AG
Slide 3: 50+ Years of History – A Story of Success and Innovation
50+ YEARS OF HISTORY – A STORY OF SUCCESS AND INNOVATION 1968 1984 1995 1999 2006 2015 2019 2023 Foundation of First 200 mm Acquisition of Start of 200 mm Foundation of 50:50 Siltronic Inauguration of the Inauguration of Wacker- wafers at Freiberg fab production at JV with Samsung executes new cryst
Slide 4: International Production Network Serves Customers Around the Globe
INTERNATIONAL PRODUCTION NETWORK SERVES CUSTOMERS AROUND THE GLOBE Singapore Singapore 300 mm volume production in 200 SSW CP* 300 mm SSP mm Germany & Singapore Germany Germany (Burghausen, Freiberg) R&D hub in Burghausen 300 ≤150 CP* mm mm Leading USA USA (Portland) Edge 200 production mm R&D = Res
Slide 5: Expansion of Electronics Value Chain Will Drive Semiconductor and Wafer Growth
EXPANSION OF ELECTRONICS VALUE CHAIN WILL DRIVE SEMICONDUCTOR AND WAFER GROWTH Electronics value chain (figures for 2023)(1) 99% of the semiconductor value chain is based Electronics on silicon USD 1,875 bn USD 1 tn Semiconductors semi sales at the end USD 516 bn of this decade(2) Semiconductor sili
Slide 6: Well Positioned in a Consolidated Market as the Only Western-Based Manufacturer
WELL POSITIONED IN A CONSOLIDATED MARKET AS THE ONLY WESTERN-BASED MANUFACTURER Up to 90% are served by the top Global 5 wafer manufacturers Wafers Sumco Top 5 Only western based wafer Wafer 14% market share manufacturer producers Shin Etsu SK Siltron Consolidated market leads to high transparency a
Slide 7: Overall CAGR of 4-5% Expected, Highest Growth in 300 mm
OVERALL CAGR OF 4-5% EXPECTED 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 8 strong growth 7 +6% 6 5 4 3 6% 2 +1% 200 mm slightly increasing 1 0 2010 2013 2016 2019 20222023 2023 2025 2023 2028 300 mm
Slide 8: End Market Growth Still Negatively Overcompensated by Excess Inventory
END MARKET GROWTH STILL NEGATIVELY OVERCOMPENSATED BY EXCESS INVENTORY Consumption of wafers by end use 2023, in % Growth in demand for wafer area 2024 vs. 2023, in % Server Strong growth with AI Smartphones 22 5 pushing net content PCs 14 3 Server 13 22 Smartphones Industrial 16 -2 Modest recovery
Slide 9: Megatrends Will Drive Wafer Demand
MEGATRENDS WILL DRIVE WAFER DEMAND Siltronic well positioned to Autonomous support each vehicles & Digitalization megatrend Electromobility All segments will participate and Security Renewables Power with over proportional growth Key benefits Artificial from strategic focus on Industry 4.0 Leading E
Slide 10: Electromobility and AI Are Pushing Wafer Demand
FOR EXAMPLE: ELECTROMOBILITY AND AI ARE PUSHING WAFER DEMAND Silicon content between combustion engine and Silicon content between standard electrical vehicle server vs. AI server in cm² per server in cm² per car +60 to +100% Up to 8x Combustion 1 engine Electrical2 vehicle Standard Server AI Server
Slide 11: Our New Fab in Singapore
OUR NEW FAB IN SINGAPORE Project Status Commercial Facts Advantages: Inauguration took place in June High automation, high epi share, economies of scale, state of the art Focus on qualifying customers High LTA share EBITDA-margin above Depreciation starting in Q4 2024 50% mid-term 11 Investor presen
Slide 12: Further Improved Product Mix Fueled by Investments (e.g. Freiberg)
FURTHER IMPROVED PRODUCT MIX FUELED BY INVESTMENTS (E.G. FREIBERG) Every 3rd to 2nd semiconductor in the Intel EU is from this region Investments of more than EUR 1 bn since 1995 by Siltronic Leipzig Infineon Tsmc GlobalFoundries Bosch Dresden First-class geographical position Chemnitz NXP in light
Slide 13: Wafer Production Process
WAFER PRODUCTION PROCESS 13 Investor presentation © Siltronic AG
Slide 14: Our Unique R&D and Innovation Focus Is Another Important Growth Driver
OUR UNIQUE R&D AND INNOVATION FOCUS IS ANOTHER IMPORTANT GROWTH DRIVER Partnering with leading innovation R&D Innovation Strategy R&D platforms and joint development hub in Germany projects with customers Stay one generation ahead as a technology leader 450 R&D employees Focus on Leading Edge and Po
Slide 15: Siltronic Has a Proven Track Record
SILTRONIC HAS A PROVEN TRACK RECORD 2002 2005 2007 2009 2011 2013 2016 2018 2020 2022 65 nm 65 nm 45 nm 32 nm 22 nm 8 nm 10 nm 8 nm 5 nm 3 nm 2004 2006 2008 2009 2012 2014 2016 2019 2021 2023 45 nm 32 nm 22 nm 16 nm 10 nm 16 nm 5 nm 3 nm 2 nm 14 A R&D Start Commercialization 15 Investor presentation
Slide 16: Key Ingot & Wafer Properties Define the Wafer Specification
A NUMBER OF KEY INGOT & WAFER PROPERTIES DEFINE THE WAFER SPECIFICATION AND ITS FURTHER USE BY THE CUSTOMER doping level mechanical stability surface cleanliness notch position purity resistivity uniformity shape oxygen content homogeneity edge flatness flatness 16 Investor presentation © Siltronic
Slide 17: Purity and Flatness Requirements for Wafers Are Extreme
PURITY AND FLATNESS REQUIREMENTS FOR WAFERS ARE EXTREME, AS SCALING THEM INTO THE MACRO WORLD SHOWS Particles Flatness Impurity Particle size specified in the nm 20 nm on a wafer are equivalent to „parts pert trillion“ (ppt) is equivalent range. Requirements are equivalent the height of a leaf on th
Slide 18: Cost-Competitiveness a Prerequisite in the Wafer Industry
COST-COMPETITIVENESS A PREREQUISITE IN THE WAFER INDUSTRY Major cost items 2023 Continuous cost roadmaps to counter unit cost increases Labor Costs Productivity are monitored on an improvement ongoing basis Depreciation Yield Automation improvement Supplies Labor & Energy Depreciation are the two la
Slide 19: Outlook and Financial Strength
OUTLOOK AND FINANCIAL STRENGTH Our ambitions until 2028 19 Investor presentation © Siltronic AG
Slide 20: 2024 Guidance Slightly Upgraded
2024 GUIDANCE SLIGHTLY UPGRADED Sales EBITDA Margin High single digit percent below prior year Between 23% and 25% Capex EBIT Between EUR 500 and 530 mn Significant decline Depreciation Net cash flow Below EUR 300 mn Improved compared to previous year, but remains significantly negative 20 Investor
Slide 21: By 2028 Our Sales Ambition Is >EUR 2.2 bn
BY 2028 OUR SALES AMBITION IS >EUR 2.2 BN DRIVEN BY VOLUME AND CAPACITY EXPANSION Sales in EUR mn Volume effect Assumed volume Volume ASP growth 2028 vs. 2022 FX o Total CAGR 4–5% 2028 o 300 mm CAGR 6% ~1,600 Capacity expansion FabNext along with 2,200 + market growth ASP effect Overall stable FX ef
Slide 22: Profitable Growth Until 2028 Supported by Volume Growth and Cost Advantages
PROFITABLE GROWTH UNTIL 2028 IS SUPPORTED BY VOLUME GROWTH AND COST ADVANTAGES EBITDA-Margin in % Sales ASP/FX flat Cost Additional volume reduction mainly from FabNext (with fix cost build-up) Sales Adverse 2028 cost effects Cost High 30‘s 30%+ reduction Cost reduction programs Invest in new equipm
Slide 23: Top Priority: Investments in Organic Growth
TOP PRIORITY: INVESTMENTS IN ORGANIC GROWTH Capital expenditure Capital expenditure in EUR mn until 2028 in EUR mn Maintenance of business 1,316 1,074 FabNext Capability enhancement “staying capex depending on one generation ahead” 500 - 530 ramp speed + Product mix 426 ongoing improvement Steady st
Slide 24: Refinancing in 2024 Under Preparation
REFINANCING IN 2024 UNDER PREPARATION Debt financing instruments, in EUR million Syn loan Second part drawn in Syn loan Q2 (EUR 100 mn), 230 SGP Q1 (EUR 50 mn) 310 Fixed loans, drawn Variable loans, drawn Syn loan ∼1,200 150 Syn loan, not drawn yet SSD EIB Refinancing 200 105 under preparation SSD 1
Slide 25: Corporate Tax Rate Will Increase
CORPORATE TAX RATE WILL INCREASE Singapore ~15–17% Pioneer effective tax rate status until March 2024 in Germany Singapore for SSW ~20% ~30% Tax rate effective tax rate including deferred taxes Minimum USA effective tax rate in Singapore from 2025 ~25% acc. to OECD Pillar 2 effective tax rate 25 Inv
Slide 26: ESG @ Siltronic
ESG @ SILTRONIC Clear commitment to an emission-free future 26 Investor presentation © Siltronic AG
Slide 27: Ambitious Targets Keep Us Going
AMBITIOUS TARGETS KEEP US GOING Climate – Scope 1+2 CO2 emissions Water usage intensity 2030: -42%1 2030: -20%4 2045: Net zero2 Status 2023: +1% Status 2023: -22% Energy – renewable Circular economy – 2030: 60% share Waste recycling ratio 2045: 100% share 2030: 25%5 Status 2023: 5%3 Status 2023: +12
Slide 28: Siltronic Is Enabling Technologies for a Sustainable Future
SILTRONIC IS ENABLING TECHNOLOGIES FOR A SUSTAINABLE FUTURE Power focus Leading edge focus Strategy on leading edge and Power chips are crucial for power wafers support New chip generations sustainability strategy decarbonization and increase energy efficiency enable renewable and need less power en
Slide 29: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS -22% absolute CO2 emissions scope 1+2 in 2023 compared to 2021 63,000 h training for 4,500 Siltronic employees in USA: GERMANY: 2023 Construction of RBA Platinum Award photovoltaic system for results of completed in 2024 sustainability audit in SINGAPORE: 300 mn EUR Freiber
Slide 30: The New Siltronic Executive Board
THE NEW SILTRONIC EXECUTIVE BOARD Dr. Michael Heckmeier Claudia Schmitt Klaus Buchwald CEO CFO COO o CEO since May 2023 o CFO since July 2023 o COO since June 2024 o 25 years at Merck o 15 years at Siltronic o 21 years at Infineon o 11 years at Wacker Chemie AG o 4 years at Rohde & Schwarz o Studied
Slide 31: Executive Summary
EXECUTIVE SUMMARY 31 Investor presentation © Siltronic AG
Slide 32: Siltronic Is…
SILTRONIC IS… …a global and on the same time the only western based player in a market crucial for future economic growth. …a technological leader with the proven track record to stay ahead of the curve. …excellently prepared to leverage the great potential from the numerous megatrends thanks to our
Slide 33: Financial Calendar and Investor Relations Contacts
Financial Calendar and Events Sep 3, 2024 Sep 4, 2024 Sep 23, 2024 Sep 25, 2024 October 24, 2024 ODDO Conference DB TMT Conference Berenberg and GS Baader Investment Q3 2024 results Frankfurt London German Corporate Conference, Munich Conference, Munich Investor Relations Contacts Verena Stütze Step