Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Q2 2021 Earnings Presentation
22 slides from Wacker Chemie's earnings presentation, Aug 5, 2021
Slide 1: Q2 2021 – Conference Call Note
CREATING TOMORROW`S SOLUTIONS Q2 2021 – Conference Call Note Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) August 5, 2021 Ticker: WCH Q2 2021 – Conference Call Note www.wacker.com August 5, 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 Q2 2021 Highlights
WACKER Q2 2021 Highlights Financials Operations Sustainability €1.5bn Strong demand in 2021 Sales (+18% Q2’19, +40% Q2’20, +10% Q1’21) Chemicals Responsible FY 2021 Strong demand across the entire product portfolio Most plants fully loaded, Care® Prize raw materials at very high levels, Improved hea
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: Silicones: Silane-Modified Polymers: Adhesives with Great Performance & Substitution Drive
SILICONES Silane-Modified Polymers: Adhesives with Great Performance & Substitution Drive Increasing # of Applications Performance Driven Growth Specialty Hybrids Expansion Parquet floor High strength SMP Market1 adhesives bonding >12% $2.8bn Significant capacity increase for high- value specialty p
Slide 6: Polymers: Climate Policies Drive Smart Construction
POLYMERS Climate Policies Drive Smart Construction Growth Drivers EU Renovation Wave Regional Expansion Regionalization Sustainability 2x 35 million buildings renovated until 2030 Doubling VAE and DPP2 capacity in 2021-22 2026-29 Nanjing, China Substitution Innovation Innovative VAE technology to
Slide 7: Profit & Loss Statement
Profit & Loss Statement Q2 2021 EBITDA 3X Higher YoY and Well Ahead of Pre-Pandemic Levels in 2019 WACKER P&L Q2 2021 (€m) Comments €m Q2 2021 Q2 2020 Sales +40% yoy Sales 1,501.0 1,072.4 Volume/Mix +21%, Price +22%, FX -3% Gross profit from sales 373.8 134.7 Gross profit margin (in %) 24.9% 12.6%
Slide 8: Balance Sheet Composition
Balance Sheet Composition Equity Increases by €600m on Earnings and Lower Pension Provisions Balance sheet (%) Characteristics 06/30/21 Cash & securities of €1,558m Assets Liabilities (Dec 31, 2020: €1,338m) €7.0bn €7.3bn €7.0bn €7.3bn Provisions for pensions: €2,236m 24.3% (Dec 31, 2020: €2,713
Slide 9: Silicones: Strong Growth in Specialty Volumes, Downstream CapEx Underway
SILICONES Strong Growth in Specialty Volumes, Downstream CapEx Underway Sales (€m) Highlights Q2 +22% Strong growth in Specialty volumes 533 548 573 613 649 Most plants fully loaded with record production Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Order intake at a high level EBITDA (€m) / margin
Slide 10: Polymers: Strong Volume Growth Continues, Surcharges Addressing Raw Materials Surge
POLYMERS Strong Volume Growth Continues, Surcharges Addressing Raw Materials Surge Sales (€m) Highlights Q2 +36% Continued strong demand growth in DPP1 and VAE2 340 330 350 404 298 Focus growth regions with mid-double digit % sales Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 growth EBITDA (€m) / mar
Slide 11: Biosolutions: Strong Sales Growth in BioPharma
BIOSOLUTIONS Strong Sales Growth in BioPharma Sales (€m) Highlights Q2 +13% High demand in BioPharma and BioIngredients 63 57 63 68 71 EBITDA with significant ramp and integration costs Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 CMD BIOSOLUTIONS: New target of €1bn in Sales with EBITDA (€m) / mar
Slide 12: Polysilicon: Significantly Improved FY Outlook due to Ongoing Solid Demand
POLYSILICON Significantly Improved FY Outlook due to Ongoing Solid Demand and High Prices Sales (€m) Highlights Q2 +131% Strong solar volumes, lean inventory levels, increasingly 298 353 211 244 153 higher prices Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Strong demand from semiconductors EBITDA (€
Slide 13: Net Cash Position Increases by €107m Sequentially Over Q1
Net Cash Position Increases by €107m Sequentially Over Q1 Net Cash Bridge per 06/30/2021 (€m) 152 99 491 +152 9 12 -68 Net financial Cash flow Cash flow from Dividend Lease Exchange-rate Net cash debt from operating long-term paid, liabilities effects as of June as of Dec. activities investing Wacke
Slide 14: Updated Guidance FY 2021
Updated Guidance FY 2021 In €m FY 2020 Outlook 2021 Sales 4,692 About €5.5bn EBITDA 666 Between €900m and €1.1bn EBITDA margin (%) 14.2% Significantly higher than last year Net cash flow 698 Clearly positive, at last year’s level CapEx 224 Around 350 Net financial debt 68 Positive net financial asse
Slide 15: Q2 2021 – Q&A Session
CREATING TOMORROW`S SOLUTIONS Q2 2021 – Q&A Session Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) August 5, 2021 Ticker: WCH Q2 2021 – Conference Call Note www.wacker.com August 5, 2021 14
Slide 16: Q2 2021 Results – Sales and EBITDA Breakdown
Q2 2021 Results – Sales and EBITDA Breakdown Q2 2021 Sales Q2 2021 EBITDA (m€) 25 353 149 404 Total: Total: €1.5bn 52 €327m 71 11 649 134 -19 SILICONES POLYMERS OTHERS / CONSOLID. BIOSOLUTIONS POLYSILICON Q2 2021 – Conference Call Note August 5, 2021 15
Slide 17: Q2 2021 Results – P&L
Q2 2021 Results – P&L In €m Q2 2021 Q2 2020 % YoY Q1 2021 % QoQ Sales 1,501 1,072 +40 1,360 +10 EBITDA 327 105 +210 246 +33 EBITDA margin 21.8% 9.8% - 18.1% - EBIT 234 2 >100 155 +51 EBIT margin 15.6% 0.2% - 11.4% - Net income for the period 179 5 >100 107 +68 EPS in € 3.50 0.07 >100 2.06 +68 Capita
Slide 18: Q2 2021 Results – Overview by Business
Q2 2021 Results – Overview by Business Sales EBITDA EBITDA Margin (%) In €m / % Q2 2021 Q2 2020 % YoY Q1 2021 % QoQ Q2 2021 Q2 2020 % YoY Q1 2021 % QoQ Q2 2021 Q2 2020 Q1 2021 Chemicals 1,123 894 26 1,031 9 197 143 38 178 11 17.5 16.0 17.2 SILICONES 649 533 22 613 6 134 68 96 122 10 20.6 12.8 19.9 P
Slide 19: Strong Growth of Global PV Markets in 2021 Expected
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 4.0 – 6.0
Slide 20: Raw Materials Show Strong Price Inflation
Raw Materials Show Strong Price Inflation Si-Metal (€/mt) Ethylene (€/mt) 1,325 € High 2,600 2,475 € High 1,400 2,400 1,200 2,200 2,000 1,000 1,800 800 1,600 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 Spot
Slide 21: Modelling Help
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 Until successful closing of
Slide 22: WACKER: Issuer, Contact and Additional Information
WACKER: Issuer, Contact and Additional Information Issuer and Contact Financial Calendar INVESTOR RELATIONS CONTACTS 10/28/21 Q3 Results 2021 Joerg Hoffmann, CFA Tel. +49 89 6279 1633 | joerg.hoffmann@wacker.com 12/17/21 Virtual CMD Series: POLYSILICON & ESG Scott McCollister Tel. +49 89 6279 1560 |