Siltronic AG — Investor Presentation 2021

Jul 28, 2021

Siltronic AG Q2 2021 Conference Call Presentation

July 28, 2021

© Siltronic AG

Update on tender offer from GlobalWafers

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

Expect completion of transaction in H2 2021

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

Siltronic Fab Next at Group site in Singapore

Fab Next	− most modern and cost-efficient 300 mm fab − construction to start in 2021 − first wafers out in 2024 − R&D hub Burghausen will support expansion on technology topics
Investment rationale	− very strong market demand − customer capacity expansion plans cannot be supported by existing wafer capacity − plan to secure substantial part of additional capacity by LTAs with prepayments (negotiations with customers progressing)
Capex	− capex of around EUR 2 bn until end of 2024 − due to construction start in 2021 capex for current year up to EUR 400m − high up-front for plant buildings and facilities

Silicon wafer area in Q2 2021 up q-o-q and y-o-y

Smartphones

• Q2 demand softer due to Q1 pull-in effects, seasonality and chip shortages
• 5G role with higher content per device out continues

Industry / Auto

• Auto: continue recovery but are limited by supply shortages
• xEVs: share accelerating
• Industrial orders going very strong

Servers / PC

• Servers showed good growth
• PCs including Chromebooks still growing

Highlights: Financial figures Q2 2021

Sales	− EUR 341.1m (Q1 2021: EUR 316.1m)
EBITDA	− EUR 108.0m (Q1 2021: EUR 91.7m) − EBITDA margin: 31.7% (Q1 2021: 29.0%)
EBIT	− EUR 69.6m (Q1 2021: EUR 54.2m) − EBIT margin: 20.4% (Q1 2021: 17.2%)
CapEx	− EUR 52.8m (Q1 2021: EUR 36.9m)
Net cash flow	− EUR 43.3m (Q1 2021: EUR 27.9m)
Net financial assets	− EUR 528.4m (December 31, 2020: EUR 499.2m)

Financials Q2 2021

Strong sales growth based on higher wafer area sold and increase in market share

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Ø FX rates	Q2/20	Q3	Q4	Q1/21	Q2
EUR / USD	1.10	1.17	1.19	1.21	1.21
EUR / JPY	118	124	125	128	132

Comments

• Positive
• Wafer area sold up q-o-q and y-o-y
• ASP flattish q-o-q
• Only minor FX impact q-o-q
• Market share up q-o-q and y-o-y

Negative

Continuing headwind from strong Euro y-o-y

Sales, in EUR m

COGS up due to higher wafer area sold COGS per wafer area down

High US-Dollar and Japanese Yen exposure

Higher wafer area sold leads to strong EBITDA and EBIT

Net profit of EUR 64 million in Q2 2021

Trade receivables and inventories high due to increased demand

Strong equity ratio and solid net financial assets

Pension reserves decreased mainly due to higher IFRS interest rates

DBO and pension reserves, in EUR m

Comment

• DBO of EUR 1,183 million ./. assets of EUR 746 million = EUR 437 million
• Pension reserves @3% = DBO of EUR ~830 million ./. assets EUR 746 million = EUR 84 million
• IFRS interest uses bond yields only, assets include bonds, equity, real estate + derivatives
• Wacker pension fund
• fully funded under German pension fund regulations using 3.23% interest rate
• asset liability study: probability of return in next 20 years:

≥3.5%	59%
≥3.0%	75%
≥2.5%	87%

Capex Q2 2021 significantly up vs. Q1 2021

Investment, in EUR m

Comments

• Capex in H1 2021
• MOB
• epi capacities
• capabilities
• expansion of crystal pulling hall to replace older equipment in Freiberg

Strong net cash flow

Outlook 2021

Further shift in main applications of silicon demand Logic and Power grow fastest

Siltronic AG – Q2 2021 Conference Call Presentation July 28, 2021 18

Siltronic Outlook 2021 (as of July 27, 2021)

Sales	− at least 10 percent above 2020
EBITDA margin	− between 30 and 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: Petra Mueller email: investor.relations@siltronic.com Tel. +49 89 8564-3133	ISIN: WKN: Deutsche Börse: Listing:	DE000WAF3001 WAF300 WAF Frankfurt Stock Exchange Prime Standard
Financial Calendar 2021 Q3 Quarterly Statement October 26, 2021

Additional Information

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.

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81677 Munich Germany

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