Siltronic AG — Investor Presentation 2021

May 7, 2021

Siltronic AG Q1 2021 Conference Call Presentation

May 7, 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)

Approvals pending

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

Expect completion of transaction in H2 2021

Highlights: Financial figures Q1 2021

Sales	− EUR 316.1m (Q4 2020: EUR 284.5m)
EBITDA	− EUR 91.7m (Q4 2020: EUR 67.2m) − EBITDA margin: 29.0% (Q4 2020: 23.6%)
EBIT	− EUR 54.2m (Q4 2020: EUR 28.4m) − EBIT margin: 17.2% (Q4 2020: 10.0%)
CapEx	− EUR 36.9m (Q4 2020: EUR 58.2m)
Net cash flow	− EUR 27.9m (Q4 2020: EUR -18.9m)
Net financial assets	− EUR 538.1m (December 31, 2020: EUR 499.2m)

Silicon wafer area in Q1 2021 up q-o-q and y-o-y

Smartphones	Industry / Auto
 Recovery trend	 Auto: strong recovery
 5G: latest smartphone generation with growing content (cameras, memory)	 Hybrid and electrical cars: share increasing  Industry applications: improving
Servers / PC  Servers showed a moderate growth  PCs including Chromebooks growing	300 mm epi on allocation 300 mm pol strong 200 mm strong SD improved  Price trend flattish q-o-q

Financials Q1 2021

Sales up due to higher wafer area sold

Sales, in EUR m

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Ø FX rates	Q1/20	Q2	Q3	Q4	Q1/21
EUR / USD	1.10	1.10	1.17	1.19	1.21
EUR / JPY	120	118	124	125	128

Comments

• Positive
• Wafer area sold up q-o-q and y-o-y
• Flattish price trend q-o-q
• Only minor FX impact q-o-q

Negative

Continuing headwind from strong Euro y-o-y

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 higher EBITDA and EBIT

Net profit of EUR 58.4 million in Q1 2021

Trade receivables and inventories increased due to higher demand

Strong equity ratio and solid net financial assets

Pension reserves decreased mainly due to higher IFRS interest rates in Q1

• DBO of EUR 1,179 million assets of EUR 730 million = EUR 449 million
• Pension reserves @3% = DBO of EUR ~850 million – assets EURO 730 million = EUR 120 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 Q1 2021 significantly down vs. Q4 2020

Investment, in EUR m

Comments

• Capex 2021 of around EUR 250m, mainly in
• 300 mm epi
• capabilities
• expansion of crystal pulling hall to replace older equipment

Strong net cash flow

Outlook 2021

Optimistic outlook for 2021 with some risks but even more opportunities

Smartphones are recovering with China showing growth. Continuous 5G phone releases increase especially DRAM and CIS demand due to more cameras.

PCs booming: continuous home office could push PC demand strongly in 2021. Large part of the growth is from Chromebooks (less NAND content). At the same time high-end Gaming PCs and consoles are practically sold out for 2021.

Servers with some uncertainty for memory demand. Expected uptick could depend on Intel's CPU release or might be impacted by server customers still digesting capacities.

Industrial recovers strongly but is still highly mixed across product categories (e.g. robots up, aerospace down) and regions (e.g. China up, Europe still down, US in-between).

Cars: automotive semiconductor companies and OEMs are bullish for production despite chip shortage talk. Risk for inventory built up. Trend towards xEV and assistant driving systems unbroken.

Estimated silicon area market development

Source: Siltronic Marketing April.2021

Siltronic Outlook 2021 (as of April 20, 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 250m (mainly in 300 mm epi, capabilities and expansion of crystal pulling hall to replace older equipment)
Net cash flow	− significant improvement
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
Q2 Interim Report	July 28, 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.

SILTRONIC AG | Einsteinstrasse 172

81677 Munich Germany

© Siltronic AG