Siltronic AG — Investor Presentation 2017

Apr 27, 2017

Siltronic AG

Q1/2017 ResultsApril 27, 2017

Highlights Q1/2017: Financials

S l a e s	S f Q l E U R 2 5 8. 0 ( 4 / 2 0 1 6 E U R 2 4 6 3 ) a e s o m m : % 4 8 + q -o -q
E B I T D A	E U R 5 3. 0 ( Q 4 / 2 0 1 6 E U R 5 0. 5 ) m n : m % 5. 0 + q -o -q
M i a r g n	E B I T D A i f 2 0. 5 % ( Q 4 / 2 0 1 6 2 0. 5 % ) m a r g n o : Q Q t b l d i t t h l h i h t b i 1 d t 4 s a e e s p e e s a g e r c o s a s e n c o m p a r e o u u
E B I T	Q E U R 2 3. 4 ( 4 / 2 0 1 6 E U R 2 0. 0 ) m m : % 1 7. 0 + q -o -q
C E a p x	Q E U R 1 9. 3 ( 4 / 2 0 1 6 E U R 2 3. 9 ) m : m
F C h F l r e e a s o w	Q E U R 3 1. 3 ( 4 / 2 0 1 6 E U R 1 0. 0 ) m : m
N C h t e a s	E U R 2 0 9. 1 ( D b 3 1, 2 0 1 6 E U R 1 0 ) 7 5. m e c e m e r : m

Market highlights

Silicon wafer demand

• Wafer demand stays strong, exceeding supply
• Siltronic's 300mm and 200mm production fully utilized since Q3/2016
• Demand in SD wafers (<200mm) picked up; high utilization by now
• Customers want to negotiate expiring contracts at earlier stages and ask for longer contract terms

Price increases

• Substantial increase in wafer prices for 300mm in Q1
• 200mm wafer prices also increased but not in the same magnitude as for 300mm
• Siltronic negotiated additional price increases for Q2
• Continuing positive price trend expected for Q3

Customer prepayments

• Customers prepayments in 2017 of around USD 20m negotiated
• Prepayments partly received in Q1; further payments will be received during 2017
• Prepayments will be invested in production equipment for leading-edge products
• This will not lead to additional capacities but improve Siltronic's product mix

Q1 sales development driven by increased prices, higher wafervolumes and some tailwind fromUSD

Positive development of EBITDA and EBITDA margin due to higher ASP, cost reductions and decreasing hedging expenses

Comments

• Positive
• Higher ASP y-o-y andq-o-q
• Successful cost reduction program continued
• Lower hedging expenses* y-o-y:
  • Q1/2017: EUR 4.5m
  • Q4/2016: EUR 1.5m
  • Q1/2016: EUR 9.7m
• Positive effects of strong USD (compared to Q1 2016) 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 of net result due to price increases, higherwafer volumes and lower costs per wafer area

Comments

• Net profit of EUR 17.0m in Q1/2017
• Driven by price increases, higher wafer volumes and lower manufacturing costs per wafer area
• EUR 4.0m effective taxes
• Potential future tax advantages based on tax losses carried forward not capitalized (accounting policies)

Equity ratio of 43.3%Net financial assets of EUR 209m

Balance sheet, in EUR million

A t s s e s	M 3 1, a r 2 0 1 7	D 3 1, e c 2 0 1 6	C t o m m e n s M 3 1, 2 0 1 7 a r	E i t d q a n u y l i b i l i t i a e s	M 3 1, a r 2 0 1 7	D 3 1, e c 2 0 1 6	C t o m m e n s M 3 1, 2 0 1 7 a r
N t o n- c u r r e n	0 5 4 7.	1 5 5 4		E i t q u y	1 4 7 5.	2 3 4 5.
P P & E	5 1 4 6	5 1 9. 8		S i l i t r o n c	8 1. 4 4	3 1. 9 4
O h f i d t e r x e	3 2. 4	3 3 4	2 5 in tan i b les g ( la te d to S S W ) re	O t h e r h h l d s a r e o e r s	6. 3 -	6 6 -	Sa 's 2 2 % in ms un g S S W
C t u r r e n	5 5 0. 2	5 0 2 7		L i b i l i i t a e s	6 2 2. 1	6 3 1. 5
I i t n v e n o r e s	1 3 4 4	1 0. 9 4		P i e n s o n i i	3 1. 7 4	3 9 1 5.	Ge d U S rm an y an
T d r a e i b l r e c e v a e s	1 2 8. 4	1 1 8. 2		p r o v s o n O h i i t e r p r o v s o n s	2. 0 5	1. 1 5	4 0 p l re la te d er so nn e ( ly e.g . e ar t ire t ) re me n
O t h t e r c u r r e n	2 6. 8	2 8. 2	2 he dg ing	F i i l d b t n a n c a e	4 1. 6	4 0. 4	Sa ms un g
				T d l i b i l i t i r a e a e s	8 2. 3	8 1. 6
C h d f i d a s a n e x t d i t e r m e p o s s	2 5 0. 7	2 1 5. 4		O h t e r	8 7 4	6 3. 3	2 7 p ts rep ay me n 3 3 e loy la te d mp ee -re 7 he dg ing
T l t o a	1, 0 9 2 7.	1, 0 6 8 5		T l t o a	1, 0 9 2 7.	1, 0 6 8 5

Pension provision increased y-o-y due to lower interest rates; however down q-o-q

Payments for CapEx partly financed by customer prepayments

Cash flow, in EUR million

	Q 1 / 2 0 1 7	Q 4 / 2 0 1 6	Q 1 / 2 0 1 6
C f f h l t i t i i t i a s o r o m o p e r a n g a c e s w v	4 8. 7	2 8. 7	2 6 8
f f t h t t e r e o r e p a m e n o p r e p a m e n s y y	5. 1 -	5. 9 -	5. 0 -
f t h t t e r e o n e c s o m e r p r e p a m e n s w u y	5. 5	0	0
f C P t E a m e n s o r a p y x	1 7. 4 -	1 8. 7 -	3 3. 5 -
F h f l r e e c a s o w	3 1. 3	1 0. 0	6. 7 -

Comments

• CapEx for investments in:
• state-of-the-art crystal pullers and further automation of production sites
• product mix optimization (leadingedge products)
• CapEx for 2017 will be around EUR 100m; partly financed by USD 20m customer prepayments
• Strong net profit lead to high free cash flow of EUR 31.3m in Q1

Siltronic Outlook 2017 (Update as of April 27, 2017)

E B I T D A i m a r g n	l 2 3 % d t t t a e a s : u p a e
R O C E	b i l l h i h h i 2 0 1 6 i d b l h i h h W A C C d t t t t t s u s a n a y g e r a n n c o n s e r a y g e r a n : u p a e ,
F C h F l r e e a s o w	l l i t i b f b 2 0 1 6 c e a r y p o s v e ; y a r a o v e
S l a e s	t l t E U R 1. 0 6 b d t a e a s n p a e : u
R & D	h d t 7 % f l u n c a n g e a a p p r o x. o s a e s
C t P i t i o s o s o n	f t t i l i d E U R 1 5 t E U R 2 0 d t p o e n a s a n g s o a r o n m o m p a e v u : u
H d i E e g n g x p e n s e s	S b t t i l l l d E U R 1 0 ( t E U R / U D 1. 0 5 E U R / J P Y 1 2 0 ) s u s a n a y o w e r a r o u n m a ; = =
D i i t e p r e c a o n	h l l f 2 0 1 6 t o n e e v e o
T t a x r a e	2 0 % l i h l b l d t t o r s g y e o w : u p a e
F i i l R l t n a n c a e s u	h l E U R 1 0 i t t r o u g y m n n e r e s e x p e n s e
E i S h a r n n g s p e r a r e	i i f i t l h i h t h i 2 0 1 6 s g n c a n y g e r a n n
C E a p x	d E U R 1 0 0 t l f i d b U S D 2 0 t t a r o n m p a r n a n c e m c s o m e r p r e p a m e n s u y y u y ,

Contact and Additional Information

Issuer and ContactSiltronic AGHanns-Seidel-Platz 4D-81737 MünchenInvestor Relations:Petra Mueller email: petra.mueller@siltronic.comTel. +49 89 8564-3133Additional InformationISIN: DE000WAF3001WKN: WAF300Deutsche Börse: WAFListing: Frankfurt Stock ExchangePrime StandardFinancial CalendarAnnual General Meeting May 9, 2017Q2 2017 Results July 28, 2017Q3 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 contained in this presentation may bestatements 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, orfurther", and similar expressions identify forward-looking statements. By their nature, forward-lookingstatements involve a number of risks, uncertainties and assumptions which could cause actual results orevents 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 forgrowth anticipated by Siltronic AG's management. These and other factors could adversely affect theoutcome and financial effects of the plans and events described herein. Statements contained in thispresentation regarding past trends or activities should not be taken as a representation that such trendsor activities will continue in the future. Siltronic AG does not undertake any obligation to update or reviseany statements contained in this presentation, whether as a result of new information, future events orotherwise. In particular, you should not place undue reliance on forward-looking statements, whichspeak only as of the date of this presentation.

SILTRONIC AG |

Hanns-Seidel-Platz 4 81737 MünchenDeutschland