Siltronic AG — Investor Presentation 2021

Oct 26, 2021

Siltronic AG Q3 2021 Conference Call Presentation

October 26, 2021

© Siltronic AG

Update on GlobalWafers' tender offer

• Completion of merger likely to be delayed due to protracted discussions with authorities on regulatory clearances
• Constructive discussions with the authorities on the terms of the outstanding clearances continue

7 approvals received

• German Federal Cartel Office
• Austrian Federal Cartel Agency
• Korean Fair Trade Commission
• Taiwanese Fair Trade Commission
• Committee on Foreign Investment in the United States (CFIUS)
• Competition and Consumer Commission of Singapore
• US Federal Trade Commission (waiting periods pursuant to the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the regulations under this act have expired. Thus completion condition set out in Section 13.1.1 ("Merger control clearances") bullet (v) of the offer document has been fulfilled)

3 approvals pending

• State Administration for Market Regulation of the People's Republic of China
• German Federal Ministry for Economic Affairs and Energy

Fab Next project well on track

• Groundwork and piling started
• Ground-breaking ceremony on October 26, 2021
• Customer demand higher than Fab Next capacity
• Additional LTAs for Fab Next capacity signed, on track to achieving high portion of additional volume

Picture Siltronic AG: image of the existing (right) and planned (left) Siltronic production facility at Tampines Wafer Fab Park

Strong end markets drove silicon wafer demand in Q3

Smartphones

 Recovering unit sales, but impacted by chip shortages	 Auto continues recovery but impacted by supply shortages
 Ongoing trend to more cameras and memory per phone  5G roll out drives content growth	 xEVs share accelerating  Industrial orders continue to be strong
Servers / PC  Stable commercial PC demand  Continued server growth (cloud services)  High demand for gaming PCs / consoles  Short term volatility due to part shortages	300 mm epi 300 mm pol all Siltronic fabs 200 mm fully loaded SD  ASP slightly up q-o-q

Industry / Auto

Highlights: Financial figures Q3 2021

Sales	− EUR 371.6m (Q2 2021: EUR 341.1m)
EBITDA	− EUR 122.9m (Q2 2021: EUR 108.0m) − EBITDA margin: 33.1% (Q2 2021: 31.7%)
EBIT	− EUR 83.9m (Q2 2021: EUR 69.6m) − EBIT margin: 22.6% (Q2 2021: 20.4%)
CapEx	− EUR 54.1m (Q2 2021: EUR 52.8m)
Net cash flow	− EUR 70.1m (Q2 2021: EUR 43.3m)
Net financial assets	− EUR 605.3m (December 31, 2020: EUR 499.2m)

Financials Q3 2021

Strong sales growth based on higher wafer area sold and slightly increased ASP

Sales, in EUR m

Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021

Ø FX rates	Q3/20	Q4	Q1/21	Q2	Q3
EUR / USD	1.17	1.19	1.21	1.21	1.18
EUR / JPY	124	125	128	132	130

Comments

• Wafer area sold up q-o-q
• ASP slightly up q-o-q
• Favorable FX q-o-q

COGS up due to higher wafer area sold

High US-Dollar and Japanese Yen exposure

Strong EBITDA and EBIT driven by wafer area, ASP and FX

Net profit of EUR 74 million in Q3 2021

Trade receivables and inventories high due to increased demand

Siltronic AG – Q3 2021 Conference Call Presentation October 26, 2021 12

Strong equity ratio and strong net financial assets

Siltronic AG – Q3 2021 Conference Call Presentation October 26, 2021 13

Largest portion of planned capex in 2021 to be spent in Q4

Investment, in EUR m

Strong net cash flow year to date

Outlook 2021

300 mm demand in 2021 is back on its historical growth trajectory

Source: Siltronic estimate

Siltronic Outlook 2021 (as of October 26, 2021)

Sales	− a good 15 percent above 2020
EBITDA margin	− approximately 32 percent
Depreciation	− around EUR 155m to EUR 160m
EBIT	− significant increase
Tax rate	− significantly below 10%
CapEx	− around EUR 400m (mainly in 300 mm epi, capabilities and expansion of crystal pulling hall to replace older equipment, Fab Next)
Net cash flow	− slightly positive, but significantly below prior year
Earnings per share	− significant increase

Contact and Additional Information

Issuer and Contact

Siltronic AG Einsteinstraße 172 D-81677 München

Investor Relations:

Dr. Rupert Krautbauer email: investor.relations@siltronic.com Tel. +49 89 8564-3133

Additional Information

ISIN:	DE000WAF3001
WKN:	WAF300
Deutsche Börse:	WAF
Listing:	Frankfurt Stock Exchange

Prime Standard

Financial Calendar 2022

• January 26 Preliminary financial figures 2021
• March 9 Annual Report 2021

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 | Einsteinstrasse 172

81677 Munich Germany

© Siltronic AG