Siltronic AG — Earnings Release 2016

Jan 31, 2017

Preliminary Financial Figures 2016

February 1, 2017

Preliminary, unaudited figures FY 2016: Highlights

Sales	Sales of 933mn EUR (2015: 931mn EUR)
EBITDA	146mn EUR (2015: 124mn EUR), Without negative FX effects* EBITDA would have been 167mn EUR
Margin	EBITDA margin of 16% (2015: 13%) Without negative FX effects* EBITDA margin would have been 18%
EBIT	positive at 27mn EUR (2015: 3mn EUR)
Cost Savings	around 30mn EUR
Investments**	89mn EUR (2015: 75mn EUR), mainly in enhanced capabilities
Free Cash Flow	19mn EUR (2015: 37mn EUR), including EUR 11mn prepayment to pension fund and EUR 21mn repayment of customer prepayments
Net Cash	175mn EUR (2015: 156mn EUR)

*other operating income and expenses influenced by FX effects, mainly due to hedging In 2016, FX effects added up to expenses of 21mn EUR. ** without investment in financial assets

FY sales development driven by higher wafer volumes and strong JPY, offsetting lower ASPs

in mn EUR

Sales	2015	2016	Change	Change in %
Q1	239	221	-18	-8
Q2	247	229	-18	-7
Q3	230	237	+7	+3
Q4	215	246	+31	+14
FY	931	933	+2	+0.2

Sales development driven by sequentially higher wafer volumes

EBITDA increased

EBITDA, in EUR mn

Comments

• Positive
• Volume growth q-o-q
• Higher ASP in Q4 q-o-q due to mix and increased spot prices
• Hedging losses* for FY 2016 decreased to 21mn EUR y-o-y
• Cost reduction on track

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

EBITDA excluding FX effects 21% in Q4/2016

EBITDA excl. FX effects*, in EUR mn

Comments

• FX effects due to hedging
• Q4/2016: EUR -2mn
• Q3/2016: EUR -7.0mn
• Q2/2016: EUR -2.7mn
• Q1/2016: EUR -9.7mn
• Q4/2015: EUR -10.5mn
• Positive effects of strong JPY on sales and gross profit outweigh negative effects on other operating income and expense

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

Positive development in Q4 carries into Q1 2017

Q4 2016 comments

• Sales volume stable q-o-q driven by strong demand
• Higher ASP q-o-q due to mix and increased spot prices
• FX effects due to hedging down to 2mn EUR in Q4

Full year 2016 comments

• Higher sales volume driven by strong demand in Q3 and Q4 and favorable product mix
• Cost roadmap on track
• 18%-EBITDA margin excluding hedging and FX effects*

2017 challenges and opportunities

• IHS Markit expects around 5% growth in silicon area demand in 2017
• Siltronic technologically well positioned to cope with latest design rule specifications
• Positive price negotiations with customers for 2017 started in Q4 2016, where contractual situation allowed to do so
• Sales 2017 expected to be at least EUR 1bn
• Negative FX effects of around 10mn EUR expected in 2017 (if EUR/USD at 1.05 and EUR/JPY at 120)
• Cost roadmap on track: savings of 20mn to 25mn EUR expected in 2017

* other operating income and expenses influenced by FX effects, mainly due to hedging . In 2016, FX effects added up to expenses of 21mn EUR.

Contact and Additional Information

Issuer and Contact		Additional Information
Siltronic AG Hanns-Seidel-Platz 4 D-81737 München		ISIN: WKN: Deutsche Börse: Listing:	DE000WAF3001 WAF300 WAF Frankfurt Stock Exchange Prime Standard
Investor Relations: Petra Mueller Tel. +49 89 8564-3133
Financial Calendar
Annual Report 2016	March 14, 2017
Q1 2017 Results	April 27, 2017
Q2 2017 Results	July 28, 2017
Q3 2017 Results	October 26, 2017

Disclaimer

The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements and information contained in this presentation may relate to 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, other words such as "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forwardlooking 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 the Company'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. The Company 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.