#1Siltronic AG Investor Presentation Q2 2023 Sound Basis For Future Growth July 27, 2023 siltronic perfect silicon solutions 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 0 siltronic perfect silicon solutions RAM 3D CPU IC (siltronic perfect silicon solutions Siltronic AG- Investor Presentation Q2 2023 July 27, 2023 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#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. July 27, 2023 - Investor Presentation Q2 2023#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 Q2 2023 (siltronic perfect silicon solutions July 27, 2023 siltronic perfect silicon solutions Source: Siltronic Estimates 2022 5#6Company overview Siltronic AG#7Siltronic at a glance M Munich Portland. Burghausen Freiberg Singapore USA 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 Q2 2023 July 27, 2023 = Production sites, Headquarter in Munich 7#8International manufacturing network supports strong market position and business focus 互 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 Siltronic AG- Investor Presentation Q2 2023 perfect silicon solutions July 27, 2023 Freiberg Burghausen CP* 300 mm SD* Singapore 200 SSW CP* 300 mm SSP mm *CP = Crystal Pulling | *SD = 150 mm and smaller#9A broad product portfolio covers standard and leading-edge requirements of the customers Portfolio ~66% 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 (siltronic perfect silicon solutions Siltronic AG- Investor Presentation Q2 2023 July 27, 2023 Note: CZ: Czochralski crystal growing, FZ: float zone technology#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 -SD (pol/epi) CAGR: 6.8% 5 4 3 Strong demand CAGR assumption of 6%1 Stable & attractive 2 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mid-term decline (siltronic Siltronic AG - Investor Presentation Q2 2023 perfect silicon solutions July 27, 2023 Source: SEMI up to Dec 2022 1) mid- and long term CAGR assumption, current 2023 market estimates below 6% 10 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 ▸ 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 >400 R&D employees worldwide Approximately 1,890 pending and active CP patents in almost 350 patent families* Quality awards from several top semiconductor customers received over the years R&D expenditure, in EUR mn (% of sales) 2022 2021 2020 2019 2018 89.5 (5.0%) (intel (Intel) el intel 80.4 (5.7%) intel 2013 (intel intel 2015 intol PREFECTULARITY TUESD CK semuc 72.6 (6.0%) 68.4 (5.4%) 68.1 (4.7%) (siltronic perfect silicon solutions Siltronic AG. Investor Presentation Q2 2023 July 27, 2023 intel) (Intel) wwwe ALIYEUER PARAD *as of December 31, 2022 11#12Cost-competitiveness a pre-requisite in the wafer industry Major cost items Continuous cost roadmaps to counter unit cost increases DO Labor Depreciation Supplies Energy Polysilicon (siltronic perfect silicon solutions Siltronic AG- Investor Presentation Q2 2023 July 27, 2023 Automation Productivity improvement Energy efficiency Recycling Supply savings O Siltronic AG 12#13Our 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 Q2 2023 July 27, 2023 O Siltronic AG 13#14Strategy based on four pillars Continuously increasing the value for our stakeholders Grow by optimizing product mix and increase capacities when needed Ο 00 Ensure top technology position & highest quality Improve financial performance & cash flow € Execute cost reduction roadmaps & debottlenecking concepts Optimize returns, stay ahead in technology and grow with the market (siltronic perfect silicon solutions Siltronic AG. July 27, 2023 - Investor Presentation Q2 2023 O Siltronic AG 14#15Overview 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 Siltronic AG- Investor Presentation Q2 2023 perfect silicon solutions July 27, 2023 O Siltronic AG 15#16Financials Q2 2023 Siltronic AG#17Q2 in line with expectations, pricing sentiment stable Profit & Loss, in EUR million Comments Q2 2023 Q1 2023 Sales 403.7 404.4 Gross profit 101.1 116.2 Gross margin, in % 25.0 28.7 EBITDA 118.6 125.2 EBITDA margin, in % 29.4 31.0 EBIT 70.3 77.8 EBIT margin, in % 17.4 19.2 Net Income 61.4 72.5 EPS, in EUR 1.83 2.20 (siltronic perfect silicon solutions Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 Sales: Stable qoq ► Slight pressure from FX, prices stable EBITDA: -5% qoq, strong margin Higher unit cost for supplies and raw material, energy prices in Germany trending down ▸ Negative inventory effects ▸ Higher positive FX hedging result EBIT: -10% qoq Expected increase in depreciation Net income: -15% qoq Reduced interest income due to lower cash position along with continued high payments for capex O Siltronic AG 17#18Strong balance sheet, expected shift between cash & securities and fixed assets Balance Sheet Composition Comments Jun 30, 2023 Dec 31, 2022 Assets, in EUR mn 4,078 4,051 Fixed assets: + EUR 488 mn vs. Dec 31, 2022 Increase to EUR 2.9 bn due to high capex Fixed Assets Inventories 70% 58% 8% 7% Receivables 8% 9% Cash & Securities 14% 26% Liabilities, in EUR mn 4,078 4,051 Equity 50% 51% Provisions 5% 5% Financial Liabilities 19% 19% Liabilites & Prepayments 26% 24% Cash & Securities: - EUR 461 mn vs. Dec 31, 2022 Decline to EUR 590 mn ▸ Operating Cashflow < Payments for capex and dividend Equity Ratio: 50% ▸ Healthy level Financial Liabilities: unchanged No further drawdown in Q2 Liabilities/Prepayments: slight increase Customer Prepayments received: EUR 78 mn ► Provisions for pensions unchanged Siltronic AG- Investor Presentation Q2 2023 (siltronic perfect silicon solutions July 27, 2023 O Siltronic AG 18#19Major Capex in 2023 (mostly for FabNext) will fuel future growth Investment, in EUR million 363 257 188 -1,300 Comments 426 1,074 Capex Capex 2023 for FabNext, extension of crystal pulling hall in Freiberg and capability enhancement. Capex 2024 down by more than half Depreciation will more than double in 2024 Conservative Financing Approach ▸ Existing cash and future operating cash flows ▸ Customer prepayments Financial debt 2018 2019 2020 2021 2022 2023e 2024e (siltronic Siltronic AG - Investor Presentation Q2 2023 perfect silicon solutions July 27, 2023 O Siltronic AG 19#20High Capex transforms net financial assets into debt Net Financial Debt, in EUR million Comments Net financial assets Dec 31, 2022 Operating Cash flow Payments for Capex Payments for -90 Dividend Others -10 Net financial debt -83 June 30, 2023 (siltronic perfect silicon solutions 374 -588 Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 231 Four financing instruments in place ▸ ESG linked promissory note loan ▸ Singapore Dollar bilateral loan European Investment Bank bilateral loan New: Syndicated loan (term loan and RCF) EUR 380 mn, expected (partial) drawdown in 2024 Net financial assets Dec 31, 2022, turning into net financial debt Jun 30, 2022 Solid operating cash flow Record invest outflow, mainly for FabNext ► Dividend payment ▸ Change in net financial position EUR -457 million O Siltronic AG 20 20#21Outlook 2023 Siltronic AG#22Characteristics of current market development Market weakness with significant excess inventory and volume shifts We benefit from a high LTA share (siltronic perfect silicon solutions Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 € Environment of price stability High profitability despite market weakness O Siltronic AG 22 22#23End markets are expected to stagnate in 2023 (before inventory effects) Consumption of wafers by end use 2022, in % Smartphones 22 22 Growth in demand for wafer area 2023 vs. 2022, in % -3 PCs Server 11 Industrial 17 16 Automotive 14 Others¹ (siltronic perfect silicon solutions 20 20 -17 -1 Total: -1 2 10 17 Source: Siltronic estimates, 1 Infrastructure Telecommunications, game consoles, consumer electronics such as televisions, white goods such as refrigerators Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 O Siltronic AG 23#24Inventory reductions at multiple levels of the value chain are anticipated to reduce wafer demand by around 15% Composition of growth drivers for wafer market 2023 vs. 2022, in % -1 % Total end markets Siltronic AG- Investor Presentation Q2 2023 (siltronic perfect silicon solutions July 27, 2023 Inventory reduction at - customers and OEMs ~ -15% 2023E O Siltronic AG Source: Siltronic estimates 24#25Outlook 2023 - H2 stronger burdened than H1, Q3 will be the trough from today's perspective FY 2023 Sales 14% -19% below 2022 EBITDA Margin 26% - 30% Depreciation around EUR 210 mn Capex around EUR 1.3 bn Net Cash Flow significantly below 2022 Tax Rate around 10% (siltronic perfect silicon solutions Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 Based on FX assumption EUR/USD at 1.10 O Siltronic AG 25#26And beyond? My crystal ball is as good as yours (siltronic Siltronic AG - Investor Presentation Q2 2023 perfect silicon solutions July 27, 2023 + Memory inventory still elevated First positive signs from Logic players (AI) Power still strong with nice content growth Watching consumer sentiment in Chinal € Inflation ? Geopolitical risks 2 Time lag for wafer industry - 6 months Source: nigel-tadyanehondo/unsplash.com O Siltronic AG 26 46#27All experts agree: Growth areas Al, digitalization and electromobility will drive wafer demand (siltronic perfect silicon solutions Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 Artificial Intelligence Al Servers up to 8x more silicon content Al < 5% of servers shipped worldwide Al growth rates > 30% in the next years Digitalization Assistant systems in cars Replacement of analog systems 5G will drive content Electromobility Wafer area 60 to 100% higher Source: Al_steve-johnson/unsplash.com, phonlamaiphoto /stock.adobe.c O Siltronic AG 27 27#28Siltronic has a diversified and resilient product mix 2022 Market Product Mix by Segment Power and others Memory Logic Our market share per segment almost mirrors this picture (siltronic perfect silicon solutions Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 Source: Siltronic estimate, July 4, 2023 O Siltronic AG 28#29FabNext: Production to start in early 2024, detailed ramp timing depends on market reality siltronic On track, production to start in early 2024 Ramp speed for 2024 and 2025 slightly reduced according to market reality Focus on qualifying customers High share of LTA, 80% during ramp phase (siltronic perfect silicon solutions Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 ミ Advantages: High automation, high EPI share, Economies of Scale, State of the art 7 Most cost efficient Siltronic fab mid-term € EBITDA-Margin above 50% mid-term (Marginal EBITDA impact in 2024) Group Margin improvement, more and more from new fab in Singapore O Siltronic AG Source: Siltronic 29#30Strong commitment to create substantial shareholder value We have very solid financial strength for future growth We have a strong technological position and a clear innovation focus (siltronic perfect silicon solutions Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 ** € 'B We have strong customer relations with high LTA share We see significant sales and earnings upside with expected market turnaround O Siltronic AG 30 30#31Contact 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 Additional Information DE000WAF3001 ISIN: WKN: WAF300 Deutsche Börse: Listing: WAF Frankfurt Stock Exchange Prime Standard Financial Calendar 2023 October 26 Q3 2023 Quarterly Statement (siltronic perfect silicon solutions Siltronic AG - Investor Presentation Q2 2023 July 27, 2023 DEUTSCHE BÖRSE SDAX TecDAX PRIME STANDARD Corporate ESG Performance RATED BY ISS ESG Prime O Siltronic AG 31#32Disclaimer 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 Q2 2023 July 27, 2023 O Siltronic AG 32#33siltronic perfect silicon solutions SILTRONIC AG Einsteinstr. 172 81677 Munich Germany Siltronic AG