Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Q3 2021 Earnings Presentation
22 slides from Wacker Chemie's earnings presentation, Oct 28, 2021
Slide 1: Q3 2021 – Conference Call Note
CREATING TOMORROW’S SOLUTIONS Q3 2021 – Conference Call Note Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) October 28, 2021 Ticker: WCH Q3 2021 – Conference Call Note www.wacker.com October 28, 2021 0
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements and information contained in this presentation may relate to future expectations and other forward-looking statements that are based on man
Slide 3: WACKER Q3 2021 Highlights
WACKER Q3 2021 Highlights Financials Operations Sustainability €1.66bn Chemicals WACKER joins Sales (+40% Q3’20) Volumes significantly higher in all the UN Race to primary end markets. Price and mix Very high demand across entire portfolio effects offset unprecedented raw Zero Initiative Group to ac
Slide 4: Leading Positions in Key Markets with a High Degree of Specialization
Leading Positions in Key Markets with a High Degree of Specialization SILICONES POLYMERS BIOSOLUTIONS POLYSILICON Key markets: Key markets: Key markets: Key markets: Construction Construction BioPharma Semiconductor Industry & Automotive Consumer & Industrial BioIngredients PV Solar
Slide 5: WACKER SILICONES: Accelerating Specialties Growth with Silanes Acquisition in China
WACKER SILICONES Accelerating Specialties Growth with Silanes Acquisition in China JV with SICO Closes Specialties Gap & Internationalizes Supply Applications Closing a technology gap in WACKER’s Regionalization in fast-growing Adhesives Plastic Additives global portfolio markets Creating a unique
Slide 6: WACKER SILICONES: A Win-Win Partnership with SICO Performance Materials
WACKER SILICONES A Win-Win Partnership with SICO Performance Materials SICO Performance Materials Co., Ltd. Transaction Details Specialty Silanes: Stake: Leading manufacturer in China WACKER acquires 60%, JV will be fully consolidated upon Financials: closing €54m sales in 2020, strong growth,
Slide 7: WACKER POLYMERS: Substitution & Sustainability Drives Growth in Adhesive Applications
WACKER POLYMERS Substitution & Sustainability Drives Growth in Adhesive Applications Adhesives Applications Key Success Factors Growth Potential Performance-Based Substitution Global Adhesive Synthetic Wood Adhesion Flooring Polymer Latex Market 2020* Excellent adhesion and bonding to wide range o
Slide 8: Profit & Loss Statement
Profit & Loss Statement EBITDA >2X Higher, Driven by POLYSILICON and 40% YoY Increase in Chemicals WACKER P&L Q3 2021 (€m) Comments €m Q3 2021 Q3 2020 Sales +40% yoy Sales Volume/Mix +12%, Price +28%, FX +1% 1,659 1,183 Gross profit from sales 486 220 Gross profit supported by strict cost discip
Slide 9: Balance Sheet Composition
Balance Sheet Composition Equity Improves by €943m on Earnings and Lower Pension Deficit Balance sheet (%) Characteristics 09/30/21 Cash & securities of €1,980m Assets Liabilities (Dec 31, 2020: €1,338m) €7.0bn €7.8bn €7.0bn €7.8bn Provisions for pensions: €2,167m 24.3% (Dec 31, 2020: €2,713m) 3
Slide 10: SILICONES: Specialties Growth and Strong Order Intake
SILICONES Specialties Growth and Strong Order Intake Sales (€m) Highlights Q3 +24% Double-digit volume growth and higher prices 548 573 613 649 680 Broad-based demand with order intake at a high level Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Nearly all plants operating at capacity limits EBITDA
Slide 11: POLYMERS: Surcharges Offset Raw Material Headwinds
POLYMERS Surcharges Offset Raw Material Headwinds Sales (€m) Highlights Q3 +38% Market remains tight with continued strong demand 404 469 340 330 350 Strong regional growth supported by recent investments Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Surcharges mitigate unprecedented raw material pr
Slide 12: BIOSOLUTIONS: Strong Sales Growth in BioPharma and BioIngredients
BIOSOLUTIONS Strong Sales Growth in BioPharma and BioIngredients Sales (€m) Highlights Q3 +36% Continued strong demand in BioPharma and 63 68 71 78 57 BioIngredients Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 EBITDA supported by higher prices and good cost- EBITDA (€m) / margin structure +43% 11 11
Slide 13: POLYSILICON: Strong Demand and Significantly Higher Prices
POLYSILICON Strong Demand and Significantly Higher Prices for Solar-Grade Polysilicon Sales (€m) Highlights Q3 +94% Strong demand and tightness in semi and high-end 353 409 244 298 211 solar markets Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 EBITDA supported by significantly higher prices for EBITD
Slide 14: Net Cash Position Increases by €386m in Q3 2021
Net Cash Position Increases by €386m in Q3 2021 Net Cash Bridge per 09/30/2021 (€m) 226 99 +538 49 11 991 -68 Net financial Cash flow Cash flow from Dividend Lease Exchange-rate Net cash debt from operating long-term paid, liabilities effects as of Sept. as of Dec. activities investing Wacker and ot
Slide 15: FY 2021 Guidance
FY 2021 Guidance Ongoing Very Strong Chemicals Demand and Continued High Polysilicon Prices In €m FY 2020 Outlook 2021 Sales 4,692 About €6.0bn (Prior: About €5.5bn) Between €1.2bn and €1.4bn EBITDA 666 (Prior: Between €900m and €1.1bn) EBITDA margin (%) 14.2% Significantly higher than last year 698
Slide 16: Q3 2021 – Q&A Session
CREATING TOMORROW’S SOLUTIONS Q3 2021 – Q&A Session Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) October 28, 2021 Ticker: WCH Q3 2021 – Conference Call Note www.wacker.com October 28, 2021 15
Slide 17: Q3 2021 Results – P&L
Appendix: Q3 2021 Results – P&L In €m Q3 2021 Q3 2020 % YoY Q2 2021 % QoQ Sales 1,659 1,183 +40 1,501 +10 EBITDA 434 191 +127 327 +33 EBITDA margin 26.1% 16.1% - 21.8% - EBIT 343 91 +278 234 +47 EBIT margin 20.7% 7.7% - 15.6% - Net income for the period 249 68 +267 179 +39 EPS in € 4.90 1.30 +277 3.
Slide 18: FY 2020 and Q3 2021 Results – Breakdown by Business
Appendix: FY 2020 and Q3 2021 Results – Breakdown by Business FY 2020 FY 2019 Q3 2021 Q3 2020 EBITDA EBITDA EBITDA EBITDA In €m / % SALES EBITDA MARGIN SALES EBITDA MARGIN SALES EBITDA MARGIN SALES EBITDA MARGIN Chemicals 3,789 696 18.4 4,011 704 17.5 1,227 256 20.9 945 184 19.4 SILICONES 2,244 388
Slide 19: Strong Growth of Global PV Markets in 2021 Expected
Appendix: Strong Growth of Global PV Markets in 2021 Expected Country 2016 2017 2018 2019 2020 2021e Germany 1.5 1.8 3.0 4.0 4.9 4.0 – 6.0 Spain 0.1 0.1 0.4 4.7 3.3 4.0 – 5.0 Europe other 4.8 4.9 8.1 13.0 13.0 14.0 – 17.0 Europe total 6.4 6.8 11.5 21.7 21.2 22.0 – 28.0 Australia 0.8 1.3 3.8 4.4 5.1
Slide 20: Raw Materials Show Strong Price Inflation
Appendix: Raw Materials Show Strong Price Inflation Si-Metal (€/mt) Ethylene (€/mt) 8,200 € High 1,325 € High 10,000 1,400 8,000 1,200 6,000 1,000 4,000 800 2,000 1,500 € Low 720 € Low 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: CRU, Si-Metal
Slide 21: Modelling Help
Appendix: Modelling Help “Shape the Future” P&L: Ongoing restructuring expenses booked directly into the businesses (low-double-digit m€ in 2021) Cash flow: 2021 impacted by payout of one-time restructuring expenses Siltronic AG At-equity accounting discontinued end of 2020 Dividend of €18.5
Slide 22: WACKER: Issuer, Contact and Additional Information
WACKER: Issuer, Contact and Additional Information Issuer and Contact Financial Calendar INVESTOR RELATIONS CONTACTS 12/16/21 Virtual CMD Series: POLYSILICON & ESG Joerg Hoffmann, CFA 03/15/22 Annual Report 2021 Tel. +49 89 6279 1633 | joerg.hoffmann@wacker.com 03/29/22 Virtual CMD Strategy Update 0