#1siltronic perfect silicon solutions Siltronic AG Investor Presentation - FY 2022 March 9, 2023 O Siltronic AG#2Market overview Siltronic AG#3Electronics value chain continued to grow in 2022 Increasing demand for electronic devices and new applications drive semiconductor growth, which in turn fuels silicon demand о RAM siltronic perfect silicon solutions 3D CPU IC (siltronic Siltronic AG - Investor Presentation FY 2022 March 9, 2023 perfect silicon solutions 00 T Electronics USD 1,855 bn Semiconductors USD 562 bn Semiconductor silicon wafers USD 13.8 bn Silicon for electronic applications USD 1.3 bn Sources: TechInsights, WSTS (Si based), SEMI SMG, Siltronic Marketing 3#4New applications for electronic devices and the infrastructure to support them continue to drive silicon demand Current growth drivers include Data explosion: connected devices, data transport and storage, big data, logic/Al Power: renewable energy, smart grid, battery chargers Automotive: ADAS, infotainment, electro mobility Pictures: coolhand118/stock.adobe.com, tippapatt/stock.adobe.com, monsitj/stock.adobe.com, Wellnhofer Designs/stock.adobe.com, E/stock.adobe.com, AdobeStock_101580295 (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 O Siltronic AG#5Consolidated market with 5 major wafer manufacturers Top 5 wafer producers serve up to 90% of the market across all diameters 14% ■SK Siltron ■ Siltronic ■Shin Etsu ■Sumco GlobalWafers Siltronic AG - Investor Presentation FY 2022 (siltronic March 9, 2023 perfect silicon solutions siltronic perfect silicon solutions. O Siltronic AG Source: Siltronic Marketing 5#6Company overview Siltronic AG#7Siltronic at a glance Portland Burghausen USA Munich Freiberg Singapore Key financial figures 2022 France Germany Italy 4 world-class production sites ~ 4,500 employees global scale and reach China Singapore 50+ years of history in silicon technologies Taiwan South Korea Japan ▸ Sales: EUR 1,805.3 million ➤ EBITDA: EUR 671.6 million EBITDA margin: 37.2% ▸ Net cashflow: EUR -395.4 million ▸ Net financial assets: EUR 373.6 million (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 = Production sites, Headquarter in Munich 7#8互 International manufacturing network supports strong market position and business focus 200 Portland mm Central R&D hub in Burghausen High-volume 300 mm fabs in Germany and Singapore Singapore fabs among the world's newest & largest (siltronic March 9, 2023 perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 Freiberg Burghausen CP* 300 mm SD* Singapore 200 SSW CP* 300 mm SSP mm = *CP Crystal Pulling | *SD = 150 mm and smaller 8#9A broad product portfolio covers standard and leading-edge requirements of the customers Portfolio ~65% Ø 300 mm Process CZ Products Double side polished wafer Epitaxial wafer Ultimate Silicon™ Main Applications Memory, Logic, Analog Portfolio ~34% Ø 125 200 mm + SD Process CZ + FZ Standard products Polished wafer, Epitaxial wafer, Cut/lapped/etched wafer Special products Lowly-doped and highly-doped wafer Main Applications Logic, Analog, Discretes, Micro-processors, Image Sensors, Power- and Optoelectronics, IGBTs Note: CZ: Czochralski crystal growing, FZ: float zone technology (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 6#10Siltronic is focused on growing 300 mm (6% in 2022) and attractive 200 mm business Development of Total Wafer Demand per Diameter, in mn 300 mm equivalents per month 9 -300 mm 8 -200 mm 7 6 5 CO -SD (pol/epi) CAGR: 6.8% 4 3 2 Strong demand CAGR assumption of 6%1 Stable & attractive 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mid-term decline (siltronic Siltronic AG - Investor Presentation FY 2022 March 9, 2023 perfect silicon solutions Source: SEMI up to Dec 2022 1) mid- and long term CAGR assumption, current 2023 market estimates below 6% 10#11Top technology position complemented with a high level of quality A leading position in wafer technology ▸ Commercialization of 3 nm node started in 2022 >400 R&D employees worldwide Approximately 1,890 pending and active patents in almost 350 patent families* ▸ Development of 2 nm node started in 2021 (commercialization expected to start in 2024) ▸ Concurrently optimizing on 50+ wafer parameters of each design rule ▸ Single wafer traceability for 300 mm ▸ Standardized processes across sites enabling "copy exactly" at product level Quality awards from several top semiconductor customers received over the years intel intel intel. (intel) PREFERRED YUKATALU (intel) intul Intel STEV R&D expenditure, in EUR mn (% of sales) 2022 2021 2020 2019 2018 89.5 (5.0%) 80.4 (5.7%) 72.6 (6.0%) th 68.4 (5.4%) 68.1 (4.7%) (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 intel (intel PREFERRED QUAUTYSUPER SUPPLER MARRO *as of December 31, 2022 11#12FabNext in Singapore with significant upside for Siltronic sikuonic Technical State of the art plant Largest and most efficient Siltronic fab Very high degree of automation ▸ Ramp phase of several years with ~ 150 k additional wafer capacity per month every year during the ramp phase High share of epitaxy (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 Financial Most cost efficient Siltronic fab 80% of output during ramp phase secured with LTA's, partially until 2030 ▸ Positive impact on Group EBITDA from 2024 EBITDA Margin of >50% 12#13Cost-competitiveness a pre-requisite in the wafer industry Major cost items Continuous cost roadmaps to counter unit cost increases (siltronic Labor € Depreciation 3> < + DO perfect silicon solutions Supplies Energy Polysilicon Siltronic AG - Investor Presentation FY 2022 March 9, 2023 Automation Productivity improvement Energy efficiency Recycling Supply savings 13#14Our objectives and values Profit We aim for profitability above industry average and positive cash flow across all market cycles Capabilities Be one generation ahead - we enable innovation at our customers Sustainability We act as a good "Corporate Citizen❞ and fully compliant with all applicable regulations. Part of our sustainability strategy are initiatives to anchor CSR even more in the company Partners Together with our customers and suppliers we build a winning network to create mutual, enduring value Efficiency Be a highly efficient, lean and fast moving organization driven by continuous improvement Quality We are committed to perfection in processes, products, organization and cooperation in order to to consistently fulfill our customer expectations People Diversity and respect are key. We promote strengths of people and expect a sense of responsibility and performance development. Occupational safety is a top focus Growth We continuously increase our company value by at least growing with the market (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 O Siltronic AG 14#15Strategy based on four pillars Continuously increasing the value for our stakeholders ا Grow by optimizing product mix and increase capacities when needed OOO Ensure top technology position & highest quality Improve financial performance & cash flow € Execute cost reduction roadmaps & debottlenecking concepts (siltronic perfect silicon solutions Optimize returns, stay ahead in technology and grow with the market Siltronic AG - Investor Presentation FY 2022 March 9, 2023 O Siltronic AG 15#16Overview Financials Adjusted financial figures 2018 2019 2020 2021 2022 (EUR mn) Sales 1,456.7 1,270.4 1,207.1 1,405.4 1,805.3 EBIT 497.7 298.3 192.2 316.9 495.6 EBIT margin in % 34.2 23.5 15.9 22.5 27.5 EBITDA 589.3 408.7 331.9 466.4 671.6 EBITDA margin in % 40.5 32.2 27.5 33.2 37.2 Earnings per share 12.44 7.52 5.36 8.44 13.02 Capex 256.9 363.0 187.6 425.6 1,073.6 Free cash flow 1 416.4 36.4 32.0 108.6 -118.0 Net cash flow 1 240.4 81.3 77.4 1.7 -395.4 Dividend 2 150.0 90.0 60.0 90.0 90.0 1 2 In 2018, Siltronic started reporting the key figure,,net cash flow" instead of „free cash flow". Net cash flow represents free cash flow without the time shifts created by inflow and return of customer prepayments which, due to the size, impairs the meaningfulness of free cash flow. Proposed dividend for 2022 Siltronic AG - Investor Presentation FY 2022 (siltronic March 9, 2023 perfect silicon solutions O Siltronic AG 16#17Key investment highlights Market Position ▸ Strong market position in the semiconductor and wafer industry Customers ▸ Supplier to all top 20 silicon wafer consumers Products High-quality wafers made of hyper pure silicon mm (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 Strategy Best-in-class technology and quality Financials ▸ Profitable sales increase and on- going efficiency improvement Management ▸ Experienced management team and highly skilled workforce O Siltronic AG انا 17#18Corporate Social Responsibility Siltronic AG#19Siltronic Climate Action Program on track - 10% reduction of Scope 1 and 2 emissions in 2022 Climate Action Program Siltronic's commitment to Science Based Target initiative to limit global warming to 1.5°C: Goal until 2030: 50% CO2 reduction (Scope 1 and 2)² Goal until 2045: net zero ▸ Three main levers: [4] Energy efficiency Own generation of renewable energy Purchasing renewable energy CSR Targets until 2030 AFFORDABLE AND CLEAN ENERGY 12 CONDITION 6 14 CONSUMPTION AND PRODUCTION со CLEAN WATER AND SANITATION BELOIN WATER CLIMATE ACTION Reduce specific energy consumption by 20%1 Increase waste recycling by 25%¹ Reduce specific water usage by 20%1 Increase water recycling by 25%¹ Reduce absolute greenhouse gas emissions by 50%² (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 1) base year 2015 2) base year 2021 19#20Siltronic enables technologies for a sustainable future Resource efficency Innovation driver for environmentally friendly and resource-saving technologies Industrial automation and smart factories Increasing wafer content Sustainable mobility Reduction of transport emissions and carbon footprint to achieve climate targets Increasing safety and efficiency EV's with substantially higher wafer content Clean energy Wafer as a foundation for semiconductors enable clean, renewable energy sources and improving energy efficiency Renewable energy needs more and more wafer content (siltronic Raw materials Energy consumption Global EV growth, in million Water recycling Emissions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 perfect silicon solutions 3.4 10.9 18 million estimated by 2024 2020 2022 Change in global electricity, 2000 2019 vs. 2019 - 2040 111 Wind Solar Other low- carbon Source: Bank of America Feb 8, 2023; IEA 2022 World Energy Outlook 20#21Financials FY 2022 Siltronic AG#22Record sales due to higher prices and FX tailwind in 2022 Sales, in EUR mn 474.0 472.1 Ø FX rates Q4 Q1 Q2 Q3 Q4 21 22 442.2 417.0 376.6 EUR/ 1.14 1.12 1.07 USD 1.01 1.02 EUR/ 130 130 138 139 144 JPY Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 Comments ▸ Positive ▸ ASP in EUR up y-o-y ▸ Favorable FX y-o-y ▸ Wafer area sold slightly up y-o-y O Siltronic AG 22 222#23Higher COGS due to FX, inflation and depreciation Cost of sales, in EUR mn Gross profit, in EUR mn / Gross margin, in % 34.6 36.1 34.1 32.5 32.8 281,4 297,1 309,8 301,5 248,2 128.4 135.6 145.1 164.2 170.5 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Selling, R&D and admin expenses, in EUR mn Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Comments ‣ COGS up y-o-y ▸ Higher cost for energy and supplies ▸ Higher labor cost ▸ Higher depreciation FX effects Slight increase in wafer area sold 34.8 38.9 39.1 39.5 40.2 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Siltronic AG - Investor Presentation FY 2022 (siltronic March 9, 2023 perfect silicon solutions O Siltronic AG 23#24High US-Dollar and Japanese Yen exposure FX exposure, in % FX sensitivity ~ 7% - 13% Sales EBITDA Unhedged - EUR 9 mn 1 USD-/SGD-cent change - EUR 13 mn -60% - 80% 1 JPY change ~ - EUR 1.7 mn EUR 1.3 mn Sales Costs ■USD SGD JPY EUR Other currency effects (mostly hedging), in EUR mn -0.4 0.0 -3.0 -3.0 Comments ▸ Strong USD and SGD y-o-y ▸ Weakening of JPY y-o-y ▸ Increasing USD exposure during 2022 ▸ Other currency effects in Q4 due to FX-valuation of receivables and payables and strategic hedging -15.0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Siltronic AG - Investor Presentation FY 2022 (siltronic March 9, 2023 perfect silicon solutions O Siltronic AG 24#25EBITDA increased EUR 205 million in 2022 EBITDA, in EUR mn / EBITDA margin, in % Depreciation, in EUR mn 44.6 38.2 36.0 36.0 33.2 186.0 170.5 168.0 143.7 147.0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 131 136 -34.5 -42.3 -44.2 -46.2 -43.3 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 EBIT, in EUR mn / EBIT margin, in % Comments ▸ Positive 26.2 26.4 23.2 34.5 29.0 143.7 109.2 124.3 124.8 102.8 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 ASP in Euro up y-o-y Overall favorable FX y-o-y EUR 50 mn one-time income in Q1 (Termination fee) ▸ Negative ▸ Cost increases for energy, raw materials and supplies EBITDA excluding effects by GlobalWafers tender offer (siltronic Siltronic AG - Investor Presentation FY 2022 March 9, 2023 perfect silicon solutions O Siltronic AG 25#26Net profit of EUR 434 million in 2022 Net profit, in EUR mn EPS, in EUR 114.8 118.6 109.9 3.47 3.56 3.32 93.7 91.1 2.79 2.66 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Dividend payment, in EUR mn 150 90 90 60 FY 2019 FY 2020 FY 2021 FY 2022 (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Comments ▸ Net profit of EUR 434 mn in 2022; thereof EUR 391 mn attributable to Siltronic shareholders ▸ Dividend proposal of EUR 3.00 per share = EUR 90 mn dividend payout in May 2023 O Siltronic AG 26#27Low working capital due to high capex-related trade liabilities in Q4 Working capital, in EUR mn, Inventories and contract assets, in EUR mn Working capital ratio to quarterly sales, in % 63 61 61 46 Inventories Contract assets 292.2 224.5 38 246.2 263.7 277.9 277.2 290.1 230.2 193.7 178.0 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Trade receivables, in EUR mn Trade liabilities, in EUR mn 195.3 205.4 199.3 222.2 170.0 -164.3 -191.9 -187.1 -247.8 -336.1 Dec 21 Mar 22 Jun 22 Sep 22 Dec 21 Mar 22 Dec 22 Jun 22 Sep 22 Dec 22 (siltronic Siltronic AG - Investor Presentation FY 2022 March 9, 2023 perfect silicon solutions O Siltronic AG 27#28Equity exceeds EUR 2.0 bn, with equity ratio of 51% Equity, in EUR mn Equity ratio, in % 55.9 56.7 53.7 56.8 51.0 Provisions for pensions, in EUR mn Financial assets and debt, in EUR mn Net financial assets, in EUR mn 573 709 597 553 374 2.067 1.963 1.811 1.575 1.319 Interest rates IFRS USA 2.51% 3.22% 4.16% 4.85% 4.90% Germany 1.23% 1.86% 3.30% 3.69% 3.72% 573 709 897 921 1049 405 288 -300-368 -675 112 116 120 Dec Mar Jun Sep Sep Dec Dec Mar Jun Sep Dec Dec Mar Jun Sep Dec 21 22 22 22 22 21 22 22 22 22 21 22 22 22 22 Financial assets Financial debt (siltronic Siltronic AG - Investor Presentation FY 2022 March 9, 2023 perfect silicon solutions O Siltronic AG 28#29Net cash flow significantly negative due to ongoing invest projects Operating cash flow (OCF), in EUR mn including prepayments Prepayments net (PP), in EUR mn 273.7 92.6 100.5 88.5 197.0 191.1 189.8 150.0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 CF Capex, in EUR mn -9.8 98.2 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Net cash flow (NCF), in EUR mn excluding prepayments 36.9 -136.3 -63.6 -139.6 -123.4 -244.0 -226.0 -223.4 -245.4 -337.0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Siltronic AG - Investor Presentation FY 2022 (siltronic March 9, 2023 perfect silicon solutions Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 NCF= OCF-PP+CF Capex O Siltronic AG 29#30Major Capex in 2023 mostly for FabNext Investment, in EUR mn 426 363 257 188 1,074 Comments ▸ Capex guidance 2023 slightly above 2022 ► Mostly for FabNext ▸ Completion of Freiberg crystal pulling hall ▸ Capabilities for future design rules Capex guidance 2024 will decrease materially Conservative financing approach of high investments ▸ Existing cash and future operating cash flows Customer prepayments ► Loans (see next slide) Dividend policy amended to 40 percent of the consolidated net profit attributable to shareholders, capped at max. EUR 3 per share No capital increase in 2023 2018 2019 2020 2021 2022 2023e 2024e (siltronic Siltronic AG - Investor Presentation FY 2022 March 9, 2023 perfect silicon solutions O Siltronic AG 30#31Three pillars of debt financing for capex projects including FabNext € ESG-linked promissory note loan € 300 mn with terms of five, seven and ten years S$ Local bilateral loan in Singapore Dollar denomination S$ 450 mn, draw-down in 2022 and 2023 € European Investment Bank bilateral loan € 200 mn, drawn-down in 2022, amortizing over ten years € Term loan and revolving credit facility of € 300 mn as liquidity reserve to be drawn-down at the earliest in 2024 (if at all) (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 O Siltronic AG 31#32Outlook 2023 Siltronic AG#33Siltronic Outlook 2023 (as of March 9, 2023) Sales significantly below prior year (Q1 2023: 15 percent below Q4 2022) ~ EBITDA margin significantly below prior year (Q1 2023: 30 to 33 percent) Depreciation around EUR 220 mn EBIT significant decrease Tax rate mid single-digit percentage range CapEx Net cash flow Earnings per share slightly above prior year significantly below prior year due to high investments significantly lower Siltronic AG - Investor Presentation FY 2022 (siltronic March 9, 2023 perfect silicon solutions O Siltronic AG 33#34Contact and Additional Information Issuer and Contact Siltronic AG Einsteinstraße 172 D-81677 München Investor Relations: Verena Stütze E-mail: [email protected] Tel: +49 89 8564-3133 Financial Calendar 2023 Additional Information ISIN: DE000WAF3001 WKN: WAF300 Deutsche Börse: Listing: WAF Frankfurt Stock Exchange Prime Standard May 5 Annual General Meeting May 11 July 27 Q1 2023 Quarterly Statement H1 2023 Interim Report DEUTSCHE BÖRSE MDAX TecDAX October 26 Q3 2023 Quarterly Statement PRIME STANDARD (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 Corporate ESG Performance RATED BY ISS ESG Prime O Siltronic AG 34#35Disclaimer 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 forward- looking 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 forward- looking statements which speak only as of the date of this presentation. (siltronic perfect silicon solutions Siltronic AG - Investor Presentation FY 2022 March 9, 2023 O Siltronic AG 35#36siltronic perfect silicon solutions SILTRONIC AG Einsteinstr. 172 81677 Munich Germany O Siltronic AG