Siltronic AG · XETR:WAF

Siltronic — Investor Presentation (March 2022)

37 slides from Siltronic's investor presentation, Mar 9, 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: 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 the market across all diameters 13% SK Siltron Siltronic Shin Etsu Sumco GlobalWafers Sources: Siltronic, SEMI SMG Siltronic AG – Investor Presentation FY 2021 © Siltronic AG March 9, 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 ~ 4,100 employees global scale and reach 50+ years of history in s
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 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 2011 2012 2013 2014 2015 2016 2017
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: Major 300 mm capacity expansion projects well on track
Major 300 mm capacity expansion projects well on track FabNext in Singapore Project on track, piling completed LTAs with prepayments for around 80 % of FabNext capacity signed Conservative financing approach largely based on existing liquidity and future cashflows First shipments to customers in ear
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 − very strong market demand Investment rationale − customer capacity expansion p
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 FY 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 to Capabilities 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
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: Revenues significantly up y-o-y due to higher wafer area sold
Revenues significantly up y-o-y due to higher wafer area sold Sales, in EUR m Ø FX rates Q4/20 Q1/21 Q2 Q3 Q4 EUR / 1.19 1.21 1.21 1.18 1.14 USD EUR / JPY 125 128 132 130 130 Comments 371.6 376.6  Positive 341.1 316.1  Significant increase of wafer area sold y-o-y 284.5  ASP in Euro slightly down
Slide 24: Higher wafer area sold lead to higher COGS y-o-y
Higher wafer area sold lead to higher COGS y-o-y Cost of sales, in EUR mn Gross profit, in EUR mn / Gross margin, in % 32.0 34.1 252.6 248.2 28.0 30.8 25.6 235.9 227.5 105.2 119.0 128.4 211.7 88.6 72.8 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Selling, R&D and a
Slide 25: 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 mn ~ EUR 7 mn ~ 62% ~ 74% ~ EUR 1.4 mn 1 JPY change ~ EUR 1.9 mn Sales Costs USD SGD JPY EUR Other currency effects (mostly hedging), Comments in EUR mn 5  Strong E
Slide 26: Strong EBITDA, supported by extraordinary effects in Q4
Strong EBITDA, supported by extraordinary effects in Q4 EBITDA, in EUR mn / EBITDA margin, in % Depreciation, in EUR mn 38.2 31.7 33.1 29.0 23.6 122.9 143.7 91.7 108.0 67.2 -38.8 -37.5 -38.4 -39.0 -34.5 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 79.3 93.8 110.8 124.2 131.3 Q4 2020 Q1 2021 Q2 2021 Q3 20
Slide 27: Higher net profit of EUR 290 million in 2021
Higher net profit of EUR 290 million in 2021 Net profit, in EUR mn EPS, in EUR 93.7 2.79 64.0 73.6 1.83 2.15 58.4 1.67 40.9 1.17 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Dividend payment, in EUR mn Comments  Net profit of EUR 290 mn in 2021; thereof EUR 253 mn
Slide 28: Increase in inventories, contract assets and trade receivables
Increase in inventories, contract assets and trade receivables due to higher wafer area sold Working capital, in EUR mn, Inventories and contract assets, in EUR mn Working capital ratio to quarterly sales, in % 80 Inventories Contract assets 71 74 68 65 61 60 209.5 224.5 188.3 199.0 40 175.1 235.0 2
Slide 29: Equity ratio increased to 54%, net financial assets grew further
Equity ratio increased to 54%, net financial assets grew further Equity, in EUR mn Provisions for pensions, Net financial assets, Equity ratio, in % in EUR mn in EUR mn 53.7 53.7 54.0 54.9 45.4 Interest rates IFRS USA 2.07% 2.77% 2.39% 2.42% 2.51% Germany 0.69% 1.11% 1.14% 1.19% 1.23% 1319 1192 1079
Slide 30: High Capex in 2022 mostly for expansion projects
High Capex in 2022 mostly for expansion projects Investment, in EUR mn Comments  Capex guidance 2022 EUR 1.100 mn  2/3 of capex allocated to FabNext  300 mm epi capacity  capabilities for future design rules  expansion of crystal pulling hall in Freiberg  Conservative financing approach for Fa
Slide 31: Strong OCF, Net cash flow in line with expectation
Strong OCF, Net cash flow in line with expectation Operating cash flow (OCF), in EUR mn Customer prepayments net (PP), in EUR mn 197.0 92.7 104.7 122.8 76.6 10.9 31.4 3.5 1.7 1.6 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 CF Capex, in EUR mn Net cash flow (NCF),
Slide 33: 300 mm demand expected to follow historical growth trajectory
300 mm demand expected to follow its historical growth trajectory after 12.8% growth in 2021. 300 mm market and demand forecast in k wafers per month 10.000 6.0 % 8.000 CAGR: 6.8 % 6.000 4.000 2.000 0 10 11 12 13 14 15 16 17 18 19 20 21 22E 23F 24F 25F Source: Siltronic Marketing Feb 2022 Siltronic
Slide 34: Siltronic Outlook 2022
Siltronic Outlook 2022 (as of March 9, 2022) Sales − 15 to 22 percent increase EBITDA margin − increase to 34 to 37 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 (2/3 allocated to the const
Slide 35: 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 36: 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 (March 2022) on 6ix

Siltronic — Investor Presentation (March 2022)

Slide 1: Investor Presentation – FY 2021

Slide 2: Market overview

Slide 3: Electronics value chain continued to grow in 2021

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 a high level of quality

Slide 12: Major 300 mm capacity expansion projects well on track

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

Slide 21: Siltronic enables technologies for a sustainable future

Slide 22: Financials FY 2021

Slide 23: Revenues significantly up y-o-y due to higher wafer area sold

Slide 24: Higher wafer area sold lead to higher COGS y-o-y

Slide 25: High US-Dollar and Japanese Yen exposure

Slide 26: Strong EBITDA, supported by extraordinary effects in Q4

Slide 27: Higher net profit of EUR 290 million in 2021

Slide 28: Increase in inventories, contract assets and trade receivables

Slide 29: Equity ratio increased to 54%, net financial assets grew further

Slide 30: High Capex in 2022 mostly for expansion projects

Slide 31: Strong OCF, Net cash flow in line with expectation

Slide 32: Outlook

Slide 33: 300 mm demand expected to follow historical growth trajectory

Slide 34: Siltronic Outlook 2022

Slide 35: Contact and Additional Information

Slide 36: Disclaimer

Slide 37: SILTRONIC AG