Siltronic

Strategy

Siltronic pursues three strategic priorities: maintaining its role as a technology leader, aligning its capacities with market growth, and adapting its cost structures to market and price conditions. To meet the demands of leading-edge design rules, Siltronic will continue to invest intensively in product developments, quality-enhancing measures and 300 mm technologies. With the 300 mm market steadily gaining traction, Siltronic is well positioned to benefit from this growth. Regionally, the sales focus is Asia. Siltronic aims to generate a positive cash flow across the market cycle.

Robust Sales Growth in 2010

After 2009’s sharp sales decline, Siltronic posted strong growth in 2010. Sales soared 61 percent to €1.02 billion (2009: €637.5 million). The upturn was fueled by buoyant demand for electronic products and equipment from households and businesses. Demand rose sharply for all wafer diameters. Regionally, we boosted sales in every market, with Asia leading the field. Currently, we generate about 60 percent of our sales there (including Japan).

EBITDA climbed strongly, too, reaching €87.7 million (2009: €-162.4 million). Thus, Siltronic left negative EBITDA territory. Earnings growth was supported by higher volumes and prices, by lower specific production costs and by positive exchange-rate effects. The EBITDA margin was 8.6 percent (2009: -25.5 percent).

Investments Slightly above 2009’s Level

In 2010, investments amounted to €75.5 million (2009: €73.0 million). Siltronic concentrated its spending on projects geared to complying with, and satisfying, the semiconductor industry’s technological requirements.

On December 31, 2010, Siltronic had 5,025 employees (December 31, 2009: 5,096).