Siltronic AG — Earnings Release 2017

Feb 1, 2018

Siltronic AG Preliminary Financial Figures FY 2017

February 1, 2018

© Siltronic AG 2018

Highlights 2017: Preliminary Financial Figures

Sales	EUR 1,177m (2016: EUR 933.4m)
EBITDA	EUR 353m (2016: EUR 146.0m)
EBITDA margin	30% (2016: 15.6%)
EBIT & EBIT margin	EUR 236m (2016: EUR 27.0m) 20% (2016: 2.9%)
CapEx	EUR 123m (2016: EUR 88.8m)
Free Cash Flow	EUR 170m (2016: EUR 19.0m)
Net Financial Assets * preliminary figures for Q4 2017; all rounded	EUR 342m (December 31, 2016: EUR 175.0m) to the nearest million

Q4 sales development driven by increased prices

Positive

• Higher wafer prices for 300mm and 200mm in Q4
• ASP up y-o-y and q-o-q
• Further price increases negotiated for 2018
• LTAs signed for additional 70k capacity coming online until mid-2019

Negative

Some headwind from USD q-on-q

^* preliminary figure for Q4 2017; rounded to the nearest million

Positive development of EBITDA and EBITDA margin mainly due to higher ASP

Comments

• Positive
• Higher ASP y-o-y and q-o-q
• Successful cost reduction program continued – COGS per wafer area decreased

* preliminary figure for Q4 2017; rounded to the nearest million

Net financial assets nearly doubled since IPO

Net financial assets, in EUR million

Dividend policy introduced in September 2017

• Pay-out ratio of ~40% of net shareholder earnings based on IFRS standards
• Dividend for 2017 payable in 2018
• depending on approval of Annual General Meeting in April 2018
• High cash flow supports dividend payment

* preliminary figure for Dec. 2017; rounded to the nearest million

Increasing free cash flow generation y-o-y

Capex and FCF, in EUR million

Comments

• Customer prepayments 2017
• Repaid EUR ~24m
• Received EUR ~69m for product mix optimization and for additional capacities coming online until mid-2019
• Net increase of EUR ~45m
• Expect further prepayments in 2018

FCF Capex

* preliminary figures for Q4 2017; rounded to the nearest million

Positive development in 2017 carries into 2018

Q4 2017 comments

• Sales volume basically stable q-o-q due to full loading in 200 mm and 300 mm and very high loading in SD
• Higher ASP q-o-q due to increased prices

Full year 2017 comments

• Sales volume slightly increased due to sequentially higher loading in SD and successful OEE measures in 200 mm and 300 mm
• Cost reductions around EUR 15 million
• 30%-EBITDA margin considerably higher than in 2017, mainly due to higher ASP

2018 challenges and opportunities

• IHS Markit currently expects 4.5% growth in silicon area demand in 2018
• Silicon area growth limited by tight supply
• Positive price negotiations continue. However, price increases expected to slightly slow down compared with previous quarters
• Sales growth in the lower double-digit percentage range expected in 2018
• Negative FX effects expected due to significantly stronger Euro. If EUR/USD at 1.25 (2017: 1.13) and EUR/JPY at 135 (2017: 127):
• around EUR -100m on sales
• around EUR -60m on EBITDA

Contact and Additional Information

Issuer and Contact Siltronic AG Hanns-Seidel-Platz 4 D-81737 München Investor Relations: Petra Mueller email: petra.mueller@siltronic.com Tel. +49 89 8564-3133 Additional Information ISIN: DE000WAF3001 WKN: WAF300 Deutsche Börse: WAF Listing: Frankfurt Stock Exchange Prime Standard Financial Calendar Full Year 2017 Results March 5, 2018 Annual General Meeting April 19, 2018 Q1 2018 Results April 25, 2018 Q2 2018 Results July 25, 2018

Q3 2018 Results October 25, 2018

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 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, words such as "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "continue", "projects" or "seeks", "potential", "future", or "further" and similar expressions may 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, currency and interest fluctuations, introduction of competitive products, poor acceptance of new products and services, change of the corporate strategy and the prospects for growth anticipated by the 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 and does not intent to 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 any reliance on forwardlooking statements which speak only as of the date of this presentation.

SILTRONIC AG | Hanns-Seidel-Platz 4

81737 Munich Germany