Siltronic AG — Earnings Release 2016

Apr 28, 2016

Siltronic – a leading producer of silicon wafers

Q1/2016 Results

© Siltronic AG 2016

Highlights Q1/2016: Financials

Sales	Sales of 220.6 EUR (Q4/2015:215.3 mn EUR) Growth of 2.5%
EBITDA	23.6 mn EUR (Q4/2015: 23.2 mn EUR), Without negative FX effects* EBITDA would have been 33.3 mn EUR
Margin	EBITDA margin of 10.7% (Q4/2015: 10.8%) Without negative FX effects* EBITDA margin would have been 15.1%
EBIT	-5.6 mn EUR (Q4/2015: -6.1 mn EUR)
CapEx	20.4 mn EUR (Q4/2015: 34.4 mn EUR)
Free Cash Flow	-6.7 mn EUR (Q4/2015: -10.5 mn EUR) payments for CapEx 33.5 mn EUR in Q1/2016
Net Cash	149.2 mn EUR (December 31, 2015: 155.9 mn EUR)

* other operating income and expenses influenced by FX effects, mainly due to hedging

Market Update

GDP

• GDP growth in China declined to 6.7% in Q1/2016.
• Eurozone and U.S. continued growth at ~2% in Q4/2015.

Silicon market

• Wafer market in Q1/2016 was ~5.5 bn cm²/month, 1.3% up q-o-q and 3.8% down y-o-y.
• 300 mm market was ~4.9 mn wafers/month in Q1/2016, 1.1% down from Q4/2015 and 2.4% down y-o-y

Source: Moody's Economy.com (Apr 2016); SEMI up to Mar 2016

Sales development driven by sequentially higher wafer volumes

Comments

• Volumes Q1/2016 increased q-o-q
• Prices down for products with lower utilisation rates
• Volumes Q1/2016 decreased y-o-y
• ASP y-o-y down

EBITDA stable q-o-q

EBITDA, in EUR mn

Comments

• Positive
• volume growth q-o-q
• ASP flat q-o-q
• cost reduction on track

Negative

• prices down for products with lower utilisation rates
• higher hedging losses y-o-y*

*other operating income and expenses influenced by FX effects, mainly due to hedging

EBITDA excluding FX effects 15% in Q1/2016

EBITDA excl. FX effects*, in EUR mn

Comments

• FX effects due to hedging
• negative EUR 2.1 mn in Q1/2015
• negative EUR 10.5 mn in Q4/2015
• negative EUR 9.7 mn in Q1/2016

*other operating income and expenses influenced by FX effects, mainly due to hedging

Equity ratio of 41% and strong net cash position of EUR 149 mn

Balance sheet, in EUR mn

Assets	Mar 31, 2016	Comments	Equity and liabilities	Mar 31, 2016	Comments
Non-current	573.6		Equity	418.2
PP&E	536.7		Siltronic	422.8
Other fixed	36.9	29 intangible (related to SSW)	Other shareholders	-4.6	Samsung's 22% in SSW
Current	457.1		Liabilities	612.5
Inventories	146.6		Pension provision	379.0	Germany and US
Trade receivables	97.8		Other provisions	37.2	36 personnel related (e.g. early retirement)
Other current	24.3	7 hedging	Financial debt	39.2	Samsung
			Trade liabilities	66.8
Cash and fixed term deposit	188.4		Other	90.3	42 prepayments 27 employee related 8 hedging
Total	1,030.7		Total	1,030.7

Payments for CapEx above average in Q1/2016

Cash flow, in EUR mn

	Q1/2016	Q4/2015	Q1/2015
Cash flow from operating activities	26.8	8.0	47.7
Payments for CapEx	(33.5)	(18.5)	(8.1)
Free cash flow	-6.7	-10.5	39.6

Comments

CapEx for investments in state-of-the-art crystal pullers and further automation of production sites

Pension provision increased due to lower interest rates

Comments

• changes in interest rates influence evaluation of pension provision
• change in interest rates directly reflected in equity (OCI)

Successful cost reduction program continues

Siltronic Outlook 2016 as per April

EBITDA margin	slight improvement
ROCE	in the mid single-digit percentage range
Free Cash Flow	clearly positive, but below 2015
Sales	year-on-year decrease in the low to medium single-digit percentage range
R&D	unchanged at approx. 7% of sales
Cost Position	potential savings of around EUR 30-35 mn
Hedging Losses	substantially lower at around EUR 10-15 mn
Depreciation	slight reduction
Tax	roughly EUR 10 mn
Financial Result	roughly EUR 10 mn
Earnings per Share	presumably slightly positive
CapEx	around EUR 80 mn

Contact and Additional Information

Issuer and Contact		Additional Information
Siltronic AG Hanns-Seidel-Platz 4 D-81737 München Investor Relations: Petra Mueller Tel. +49 89 8564-3133		ISIN: WKN: Deutsche Börse: Listing:	DE000WAF3001 WAF300 WAF Frankfurt Stock Exchange Prime Standard
Financial Calendar
Annual Shareholder Meeting:	May 12, 2016
Q2 2016 Results:	July 28, 2016
Q3 2016 Results	October 27, 2016

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 and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, as well as the words "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changing business or other market conditions and the prospects for growth anticipated by Siltronic AG's management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Siltronic AG does not undertake any obligation to update or revise any statements contained in this presentation, whether as a result of new information, future events or otherwise. In particular, you should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.