Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Wacker Chemie Ag Ord — FY2023 Earnings Presentation
22 slides from Wacker Chemie's earnings presentation, Mar 12, 2024
Slide 1: FY 2023 – Conference Call Note
CREATING TOMORROW’S SOLUTIONS FY 2023 – Conference Call Note Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) March 12, 2024 FY 2023 – Conference Call Note March 12, 2024 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 FY 2023 Highlights
WACKER FY 2023 Highlights Financials Operations Sustainability €6.4bn Continued Headwinds CDP Rating: Top Persistently high energy, raw material Score on Sales (-22% yoy) Driven primarily by lower ASPs and volumes costs, reduced utilization, lower ASPs Climate Change WACKER rated with an €824m €327m
Slide 4: FY 2024 Group Guidance – Committed to 2030 Targets
FY 2024 Group Guidance – Committed to 2030 Targets Outlook for FY 2024 FY 2024 Group Guidance Sales of €6,000 – 6,500m EBITDA of €600 – 800m CapEx slightly below FY 2023 INVESTING IN THE FUTURE PEOPLE Investing in the Future: Committed to 2030 Targets MARKETS MOLECULES Sales: > €10bn EBITD
Slide 5: Strategic Investments for Future Growth Supported by Mega-Trends
Strategic Investments for Future Growth Supported by Mega-Trends SILICONES POLYMERS BIOSOLUTIONS POLYSILICON Burghausen & Nünchritz Calvert City: Halle: Burghausen: Intermediates, Hybrids VAE Dispersions mRNA Competence Semiconductor Etching Completion: 2024-25 Completion: 2025 Center
Slide 6: Investing in the Future: People, Markets, Molecules
Investing in the Future: People, Markets, Molecules People Markets Molecules Employees are the foundation to In the Regions for the Regions – Solutions for a better future – our success operations in all growth markets enabling resource saving around the world technologies Growth in the numb
Slide 7: €824m in EBITDA in a Continued Weak Demand Environment
Profit & Loss Statement €824m in EBITDA in a Continued Weak Demand Environment Profit & Loss (€m) Sales Bridge (€m) -22% FY 2023 FY 2022 8,209 -655 -1,028 6,402 -124 Sales 6,402 8,209 Gross profit from sales 1,083 2,161 Sales Volume/Mix Price FX Sales Gross margin 16.9% 26.3% FY 2022 FY 2023 EBITDA
Slide 8: Resilient Financials with €4.6bn in Equity and €1.4bn in Liquidity
Balance Sheet Composition Resilient Financials with €4.6bn in Equity and €1.4bn in Liquidity Balance sheet (%) Characteristics 12/31/23 Assets Liabilities Cash & Securities: High level of liquidity at €1.4bn €9.4bn €8.9bn €9.4bn €8.9bn Working Capital: -€330m lower yoy on release from inventorie
Slide 9: Silicones: FY EBITDA of €236m, Driven by Weak Demand
SILICONES FY EBITDA of €236m, Driven by Weak Demand, Low Prices and Adverse Mix Effects Sales (€m) 2023 Comments -14% -21% 706 3,453 Weak demand across all regions, with year-end seasonality 610 2,741 Low specialty volumes Low standards prices, stabilizing at year-end Q4 2022 Q4 2023 FY 2022 F
Slide 10: Polymers: FY EBITDA at €253m, Defending Margins
POLYMERS FY EBITDA at €253m, Defending Margins in Weak Markets Sales (€m) 2023 Comments -19% -21% Volumes below prior year level, with year-end seasonality 421 1,996 342 1,580 ASP lower yoy following development of raws & long market Regions: Europe with weak market demand, Americas Q4 2022 Q4
Slide 11: Biosolutions: FY EBITDA at €7m, Burdened by Upfront Costs
BIOSOLUTIONS FY EBITDA at €7m, Burdened by Upfront Costs Sales (€m) 2023 Comments +14% +2% Strong growth in BioPharma sales 81 93 331 337 EBITDA with upfront costs for the mRNA facility in Halle, integration costs from ADL acquisition Q4 2022 Q4 2023 FY 2022 FY 2023 Peak in CapEx driven by mRN
Slide 12: Polysilicon: FY EBITDA at €321m, Solar With Significantly Lower Prices
POLYSILICON FY EBITDA at €321m, Solar With Significantly Lower Prices Sales (€m) 2023 Comments -30% -47% 2,287 Significantly lower solar ASPs and production-related 574 1,599 volume declines 303 Resilient Semi volumes with higher prices Q4 2022 Q4 2023 FY 2022 FY 2023 Ongoing solar price diffe
Slide 13: Others: Quarterly EBITDA Strongly Influenced by CO2 Compensation
OTHERS Quarterly EBITDA Strongly Influenced by CO2 Compensation Sales (€m) 2023 Comments -22% In Q4/23, CO2 compensation for the FY 2023 of approx. 50 45 38 40 39 €100m was received and recognized as income in the OTHERS segment Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Modeling Help To ensure a t
Slide 14: €936m Gross Cash Flow Supported By Release from Working Capital
Net Financial Position €936m Gross Cash Flow Supported By Release from Working Capital Net Financial Position Bridge per 12/31/2023 (€m) 936 409 -771 -596 -23 -39 -84 Net financial asset Cash flow Cash flow from Dividend Lease Exchange-rate Net financial debt as of from operating long-term paid, lia
Slide 15: Q1 Trading Update
Q1 Trading Update Sales of about €1.5bn with an EBITDA at the Level of Q4/23 at about €135m SILICONES POLYMERS Sales and EBITDA sequentially higher Sales and EBITDA sequentially higher Continued low ASP for Standards Q1 benefits from seasonality Improved order intake so far Demand from c
Slide 16: FY 2023 – Q&A Session
FY 2023 – Q&A Session FY 2023 – Conference Call Note March 12, 2024 15
Slide 17: Guidance FY 2024
Appendix Guidance FY 2024 In €m FY 2023 Outlook 2024 Sales 6,402 €6,000 – 6,500m EBITDA 824 €600 – 800m EBITDA margin (%) 12.9 Substantially lower than last year Net cash flow 166 Negative, substantially lower than last year CapEx 710 Slightly lower than last year Net Debt 84 Higher than last year N
Slide 18: Progress Made on Achieving Ambitious Group Sustainability Targets
Appendix Progress Made on Achieving Ambitious Group Sustainability Targets 2020 2021 2022 2023 2030 Target Net Zero 100% 93% 87% 72% 100% reduction by 2045 Value Up Sustainable products 83% 89% 90% 94% 100% of products meet defined sustainability criteria Diversity: Woman in management 17% 19% 21% 2
Slide 19: FY 2023 Results – Breakdown by Business
Appendix FY 2023 Results – Breakdown by Business FY 2023 FY 2022 Q4 2023 Q4 2022 EBITDA EBITDA EBITDA EBITDA In €m / % SALES EBITDA MARGIN SALES EBITDA MARGIN SALES EBITDA MARGIN SALES EBITDA MARGIN Chemicals 4,321 490 11.3 5,449 1,165 21.4 952 69 7.3 1,128 168 14.9 SILICONES 2,741 236 8.6 3,453 876
Slide 20: Strong Growth of Global PV Markets in 2024 Expected
Appendix Strong Growth of Global PV Markets in 2024 Expected Country 2020 2021 2022 2023 2024 Germany 5 5 8 14 14 - 18 Spain 3 4 8 8 8 - 10 Europe other 13 20 30 35 38 - 52 Europe total 21 29 45 57 60 - 80 USA 19 25 19 33 35 - 55 Japan 8 8 7 7 6-8 China 48 55 87 217 230 - 250 India 4 12 14 10 15 - 2
Slide 21: Key Raw Materials, Power and Gas
Appendix Key Raw Materials, Power and Gas Si-Metal (€/mt) Electricity (€/MWh) 10,000 500 8,000 400 6,000 300 4,000 200 2,000 100 0 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Source: CRU, Si-Metal Spot FD Europe Source: EEX, Baseload Front Contract Avg. Month VAM (€/mt) Natural Gas (€/MWh) 4
Slide 22: WACKER: Issuer, Contact and Additional Information
WACKER: Issuer, Contact and Additional Information Issuer and Contact Financial Calendar INVESTOR RELATIONS CONTACTS 04/25/24 Q1 2024 Results 05/08/24 Annual General Meeting, Munich Joerg Hoffmann, CFA 07/26/24 Q2 2024 Results Tel. +49 89 6279 1633 | joerg.hoffmann@wacker.com 09/18+19/24 CMD Burghau