Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Investor Day (October 2016)
71 slides from Wacker Chemie's investor day presentation, Oct 11, 2016
Slide 1: 2016 Capital Market Day – Wacker Chemie AG
CREATING TOMORROW`S SOLUTIONS 2016 Capital Market Day – Wacker Chemie AG Growth and Cash Burghausen, October 11, 2016 Rudolf Staudigl (CEO), Tobias Ohler (CFO) Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 0
Slide 2: Welcome to WACKER's 8th Capital Market Day 2016
Welcome to WACKER’s 8th Capital Market Day 2016 Introduction Rudolf Staudigl, CEO Targets – Part 1 Rudolf Staudigl, CEO Targets – Part 2 Tobias Ohler, CFO Outlook Tobias Ohler, CFO Summary Rudolf Staudigl, CEO Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 1
Slide 3: Creating Tomorrow's Solutions, Today – For More Than a Century
Creating Tomorrow’s Solutions, Today – For More Than a Century 1914 2016 Former Business Existing Business Carbide Acetylene Acetaldehyde Acetic acid VAM VAE POLYMERS PVC Silicide Siloxane Silicon SILICONES POLYSILICON Pyrogenic silica Solar Electronic Siltronic wafers Microbial Fermentation BIOSOLU
Slide 4: Our Business Portfolio – A Foundation for Growth
Our Business Portfolio – A Foundation for Growth WACKER BIOSOLUTIONS OTHERS WACKER SILICONES High potential for future No. 2 with global development * footprint Leading positions in key growth segments WACKER POLYMERS No. 1 in dispersible polymer powders WACKER: FY 2015 No. 1 in VAE disper
Slide 5: Mid-Term Group Targets From CMD 2013
Mid-Term Group Targets From CMD 2013 Target 2017 Assumptions €6 – 6.5bn Sales “Normal” economic (~6% CAGR)* environment F/X: EUR/USD: 1.30 €1.2bn EBITDA ASP solar polysilicon (~20% margin) recovery to reinvestment level for cost leaders ROCE >11% * CAGR 2012/2017 Capital Market Day, Burghausen
Slide 6: Volume Growth on Track – Price Decline Not in Target Setting
Volume Growth on Track – Price Decline Not in Target Setting WACKER Group Sales Development 2012-2015 (in €bn) CAGR +5% 5.3 -0.4 Volume growth on track 0.2 0.8 Some unexpected 4.6 tailwind from F/X ASP solar polysilicon lower vs. expected recovery 2012 Volume Price Currency 2015 Capital Market
Slide 7: CMD 2013 Announced The Transition From Create to Leverage
CMD 2013 Announced The Transition From “Create” to “Leverage” Ratio of Capital Spending vs. Depreciation CapEx between 1.3 and 2.2x depreciation CapEx < depreciation CapEx >< depreciation 2005 2012 2013 2017 2018 2022 Create Leverage Expand 2005 – 2012 2013 – 2017 2018 – 2022 Focus on capital intens
Slide 8: Leverage Phase Realized – Except Completion of Poly 11 in 2015
Leverage Phase Realized – Except Completion of Poly 11 in 2015 CapEx vs. Depreciation Expense WACKER Group (€m) 1,088 1,095 981 834 740 699 695 572 525 504 ~425 297 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e Create Leverage Siltronic POLYSILICON Other CHEMICALS Depreciation & Amort
Slide 9: A Foundation For Growth – Our Global Asset Base
A Foundation For Growth – Our Global Asset Base Nünchritz Siloxane Siloxane Polysilicon SILICONES Europe POLYMERS Burghausen Polysilicon POLYSILICON Siloxane Siloxane VAE Dispersions, VAM, Dispersions, Dispersible Powders Dispersible Powders Zhangjiagang Elastomers / Siloxane / Fumed Silica Sealants
Slide 10: Capital Market Day 2016 Targets – Part 1
WACKER Capital Market Day 2016 Introduction Rudolf Staudigl, CEO Targets – Part 1 Rudolf Staudigl, CEO Targets – Part 2 Tobias Ohler, CFO Outlook Tobias Ohler, CFO Summary Rudolf Staudigl, CEO Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 9
Slide 11: Targets For The Next Years
Capital Market Day 2016 Targets For The Next Years 1 Extend Leverage Phase Part 1 2 Continue to Grow Above Chemical Production 3 Focus on Sustainability 4 Sustain Attractive Margins Through Economic Cycle Part 2 5 Generate Cash Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobia
Slide 12: New Target: Leverage Phase Extended to at Least 2020
New Target: Leverage Phase Extended to at Least 2020 Ratio of Capital Spending vs. Depreciation CapEx between 1.3 and 2.2x depreciation CapEx < depreciation CapEx >< depreciation 2005 2012 2013 ~2020 ~2021 2026 Create Leverage Expand 2005 – 2012 2013 – ~2020 ~2021 – 2026 Focus on capital intensive g
Slide 13: Leverage Existing Upstream Capacities – Reduce Capital Intensity
Leverage Existing Upstream Capacities – Reduce Capital Intensity Compounds and Upstream Downstream Formulations Global Regional Local Silicon Metal Elastomers Compounds Siloxane Emulsions and Fluids SILMIX® VAM Resins Emulsions VAE dispersions Dispersible Powders Capital Intens
Slide 14: Continued Focus on Downstream Assets With Higher ROI
Continued Focus on Downstream Assets With Higher ROI CapEx Upstream – ROI (%) CapEx Downstream – ROI (%) 45 45 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Project Project Project Project Project Project A B C D E F Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler
Slide 15: Silicones: Addressing Local Markets Through Regional Downstream Projects
SILICONES Addressing Local Markets Thru Regional Downstream Projects Global Footprint – Selective Project Examples Adrian 2016 Nuenchritz Emulsions Adrian, MI Burghausen Tsukuba Chino, CA North Canton, OH Shanghai / Zhangjiagang Jincheon Charleston, TN 2016 Kolkata Sealants and Elastomers Jandira, S
Slide 16: Polymers: Strengthening Market Position With Downstream Investments
POLYMERS Strengthening Strong Market Position With Downstream Invests Global Footprint – Integrated Sites in All Key Regions Burghausen Cologne 2017 Calvert City Burghausen VAE Ulsan Calvert City Nanjing 2015 Potential VAE Invest VAE / DPP POLYMERS Production Site Capital Market Day, Burghausen, Oct
Slide 17: Depreciation Will Decline Again To Below €600m Until 2020
Depreciation Will Decline Again To Below €600m Until 2020 CapEx vs. Depreciation Expense WACKER Group (€m) 920 834 572 504 ~425 Ø 2008- 2013 2014 2015 2016e 2017e 2020e 2012 Create Leverage Siltronic POLYSILICON Other CHEMICALS Depreciation & Amortization Capital Market Day, Burghausen, October 2016
Slide 18: Targets For The Next Years
Capital Market Day 2016 Targets For The Next Years 1 Extend Leverage Phase Part 1 2 Continue to Grow Above Chemical Production 3 Focus on Sustainability 4 Sustain Attractive Margins Through Economic Cycle Part 2 5 Generate Cash Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobia
Slide 19: WACKER Historically With Strong Growth Driven by Chemicals
WACKER Historically With Strong Growth Driven by Chemicals Development of WACKER Revenue (€bn) 6.0 +7% 5.0 4.0 3.0 2.0 1.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 POLYSILICON/Siltronic +6% CAGR Chemical Divisions +7% CAGR Capital Market Day, Burghausen, October 2016 Rudolf Staudig
Slide 20: Chemical Divisions Growth vs. GDP and Global Chemical Production
WACKER Chemical Divisions Historically With Stronger Growth Than GDP And Global Chemical Production CAGR 2010-2015 Forecast CAGR 2015-2020 GDP < 3% GDP ~ 3,0% Global Global Chemical < 4% Chemical < 4% Production* Production* WACKER WACKER Chemical > 4% Chemical Divisions Divisions * without Pharma;
Slide 21: Target: Continue to Grow Above Chemical Production
Target: Continue to Grow Above Chemical Production – Leveraging Customer Focus, Innovation And Specialties WACKER Customer Focus Innovation Specialties Close to customers Driven by megatrends Tech-based products with strong Creating tomorrow‘s ranging from standard customer support solutions
Slide 22: WACKER ACADEMY – Providing a Regional Infrastructure
CUSTOMER FOCUS WACKER ACADEMY – Providing a Regional Infrastructure WACKER ACADEMY Customer and Distributor teach-in Mix between theory (meeting room) and practice (lab) Close link to technical center Key Strategies Improve existing products Drive innovation in close co-operation with cust
Slide 23: Innovation at WACKER Drives Innovation at Customers
CUSTOMER FOCUS Innovation at WACKER Drives Innovation at Customers Sensors Selected Chip Sizes Size 2 Bosch SMI 650 Construction Materials Microbial Production Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 22
Slide 24: Systematically Addressing All Levers For Innovation
INNOVATION Systematically Addressing All Levers For Innovation Divisional R&D Optimization of existing solutions New New Corporate (technical marketing) Solutions R&D Development of new products within existing product platforms Market Optimization of existing processes New Solutions Existing
Slide 25: 3D-Printing as Prime Example For Creating a New Market Entry
INNOVATION AT SILICONES 3D-Printing as Prime Example For Creating a New Market Entry ACEO® 3D-Printing Prerequisite CAD product design 3D-dosing unit 3D printer Advantage Short development cycles (hours to days) Low costs for prototyping and small series part Novel product design Additiv
Slide 26: Formulation Know-How Enables Specialties For New Markets
INNOVATION AT POLYMERS Formulation Know-How Enables Specialties For New Markets Asphalt Advantages with VAE Concrete Adhesion Flexibility Compatibility Wear Resistance Oil Resistance Elongation Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 25
Slide 27: Biotechnology – The Future of Specialty Chemistry
INNOVATION AT BIOSOLUTIONS Biotechnology – The Future of Specialty Chemistry The Microbial Solutions Provider Microbial Production Using natural sources for future chemistry Pioneer with >20 years of experience in E. coli Biggest dedicated microbial Contract Manufacturing Organization in Europ
Slide 28: Granular Polysilicon PCG Complementary to Siemens Process
INNOVATION AT POLYSILICON Granular Polysilicon PCG® Complementary to Siemens Process Technology Trichlorosilane as feed gas Continuous deposition Reduced energy consumption Lower CapEx Customer Benefits Improved product handling Higher crucible loading and higher output Product for rec
Slide 29: Silicon-Based Active Materials For Lithium-Ion Battery Anodes
INNOVATION – CORPORATE R&D Silicon-Based Active Materials For Lithium-Ion Battery Anodes LIB cell market* Energy Storage and Electro mobility 40 35 Cell market [bn $] 30 25 20 15 10 5 0 2005 2010 2015 2020 2025 Consumer electronics Electromobility New applications WACKER Solution is Enabling Signi
Slide 30: Multiple Options For Adding Value With Silicone-Polymers
SPECIALTIES Multiple Options For Adding Value With Silicone-Polymers PDMS Polar Backbone (-Si-O-Si-) and Non-Polar Side Groups (CH3) Modifying structure Modifying number Modifying side groups Modifying with fillers/additives Linear or Cyclic Viscosity Viscosity Mechanical properties Termin
Slide 31: Tailor Made Products With Copolymerization of VAM And Ethylene
SPECIALTIES Tailor Made Products With Copolymerization of VAM And Ethylene Vinyl acetate Ethylene rigid flexible Properties due to Properties due to Vinyl Acetate units Ethylene units Polar Nonpolar, hydrophobic Hard feel Soft feel Rigid High flexibility Strength High chemical resist
Slide 32: Growth in Standards And Specialties to Ensure Profitable Growth
SPECIALTIES Growth in Standards And Specialties to Ensure Profitable Growth Faster growth in specialties Specialties Adding value to customers Driver for innovation Secure high margins Standards Basis for strong cost position Supply security for customers 2012 2015 Balancing Two Distinct
Slide 33: Targets For The Next Years
Capital Market Day 2016 Targets For The Next Years 1 Extend Leverage Phase Part 1 2 Continue to Grow Above Chemical Production 3 Focus on Sustainability 4 Sustain Attractive Margins Through Economic Cycle Part 2 5 Generate Cash Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobia
Slide 34: Target: Focus on Sustainability – Lever Opportunities
Target: Focus on Sustainability Lever Opportunities – Adding Value Raw Materials Adding Value to Our Customers Silicones: plastics not based on crude oil Product Stewardship Renewable sources feasible Enable our customers for a more sustainable product Sustainable sourcing strategy Process
Slide 35: WACKER Products Make Vital Contributions to Global Progress
WACKER Products Make Vital Contributions to Global Progress SILICONES POLYMERS Electro mobility External Thermal Insulation Elastomers crucial for heat VINNAPAS®: essential component of resistance and electrical insulation exterior insulation and finish systems Energy Losses: 25% Capital Market
Slide 36: Polysilicon With Excellent Track Record Preventing CO2
Polysilicon With Excellent Track Record Preventing CO2 7,000 tons of CO2 are prevented per ton of polysilicon over the life span of a solar module 8,000 CO2 prevented CO2 from poly production 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1995 2005 2015 EPIA fact sheet: The Carbon Footprint, and WACKER
Slide 37: Capital Market Day 2016 Targets – Part 1
WACKER Capital Market Day 2016 Introduction Rudolf Staudigl, CEO Targets – Part 1 Rudolf Staudigl, CEO Targets – Part 2 Tobias Ohler, CFO Outlook Tobias Ohler, CFO Summary Rudolf Staudigl, CEO Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 36
Slide 38: Targets For The Next Years
Capital Market Day 2016 Targets For The Next Years 1 Extend Leverage Phase Part 1 2 Continue to Grow Above Chemical Production 3 Focus on Sustainability 4 Sustain Attractive Margins Through Economic Cycle Part 2 5 Generate Cash Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobia
Slide 39: Continuous Growth of Sales And Operating EBITDA Since 2013
Continuous Growth of Sales And Operating EBITDA Since 2013 – Supported by Volume Growth, FX And Efficiency Gains WACKER Group: Sales and EBITDA (€m) Recovery after EUR/USD Lehman crisis €1bn price decline 1.30 1.10 5,296 4,748 4,910 4,826 4,635 4,479 1,195 1,104 1,042 1,049 795 679 2010 2010 2011
Slide 40: Well Balanced EBITDA Structure – Chemicals at 50% of Total
Well Balanced EBITDA Structure – Chemicals at 50% of Total EBITDA WACKER Group (€m) 1,195 88 1,049 124 733 402 32 25 222 123 50% 32% 276 230 -4 -8 2010 2015 Siltronic BIOSOLUTIONS SILICONES POLYSILICON POLYMERS Others / Consolidation Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO;
Slide 41: Targeting Around €150m in Savings in 2016
Besides Growth Cost Control is Crucial: Targeting Around €150m in Savings in 2016 Cost Program Chemicals Polysilicon Siltronic Group Built-in flexibility Personnel Capacities tightly managed Raw Strategic sourcing Central function Materials Globalization Investment Energy decisions refle
Slide 42: WOS: Integral Part of Our Cost Control Initiatives For 10+ Years
WOS: Integral Part of Our Cost Control Initiatives For 10+ Years Now WACKER Operating System (WOS) – Steadily Raising the Bar WOS 4.0 Cost Roadmaps WOS 3.0 specific monthly WOS targets reporting Academy WOS 2.0 Supply Chains Focus on Initiatives WOS 1.0 global / Service Units raw´s and logistic „Pow
Slide 43: WOS: Supply Chains With Significant Improvement
WOS: Supply Chains With Significant Improvement Continuous Reduction of Specific OPEX (AVG of relevant plants) 100 90 80 70 60 50 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 WOS 1.0 WOS 2.0 WOS 3.0 Reduce spec. OPEX Reduce spec. OPEX Individual plant targets 30% in 3 years 10%
Slide 44: WOS 4.0 – Aggressive Cost Roadmaps
WOS 4.0 – Aggressive Cost Roadmaps: Transferring A Successful Approach to Chemicals Yearly Cost Trimming Cycle Cost Roadmaps Cost Roadmaps successfully implemented at POLYSILICON and Siltronic for several years Since 2016: WOS 4.0 - Rollout to 16 CR Roadmap Projects Chemical Divisions Projects
Slide 45: Proven Track Record – Cost Savings 2016 on Target
Proven Track Record – Cost Savings 2016 on Target Cost reduction (€m) Cost Saving Levers Savings from cost roadmaps and cost 225 programs 200 Effects from growth in sales volumes 160 included ~150 Cost savings required to offset general cost inflation 2013 2014 2015 2016e Capital Market Day, B
Slide 46: SILICONES: Current EBITDA Margin Well Above Historical Level
SILICONES: Current EBITDA Margin Well Above Historical Level – Now Expecting a 17% EBITDA Margin in 2016 SILICONES: Sales 2010 - 2016 (€m) – EBITDA Margin (%) Ø EBITDA-Margin 2010 - 2015: ~13% 2.500 EUR/USD 2.000 1.30 1.10 1.500 1.000 EBITD Umsat 14.6% 11.5% 11.5% 13.8% 12.1% 14.2% ~17% 500 0 2010
Slide 47: POLYMERS: Material Improvement in EBITDA
POLYMERS: Material Improvement in EBITDA – Expecting an EBITDA Margin of Around 20% POLYMERS: Sales 2010 - 2016 (€m) – EBITDA Margin (%) Ø EBITDA-Margin 2010 - 2015: ~15% 1.500 EUR/USD 1.30 1.10 1.000 E 500 U 15.1% 12.0% 14.7% 15.1% 14.0% 18.7% ~20% 0 2010 2011 2012 2013 2014 2015 2016e Capital Ma
Slide 48: BIOSOLUTIONS: Sales Increased ~6% Per Year Since 2010
BIOSOLUTIONS: Sales Increased ~6% Per Year Since 2010 – EBITDA 2016e Maintains The High 2015 Level BIOSOLUTIONS: Sales 2010 - 2016 (€m) – EBITDA Margin (%) Ø EBITDA-Margin 2010 - 2015: ~15% 250 EUR/USD 200 1.30 1.10 150 EB Um 100 17.6% 14.1% 15.5% 14.9% 13.4% 16.4% ~16% 50 0 2010 2011 2012 2013 20
Slide 49: Chemicals: Raw Material Prices With Volatile Development
Chemicals: Raw Material Prices With Volatile Development – Current Trough Has Been Passed Si-Metal (€/MT) Ethylene (€/MT) 1,345 € Six-Year-High 2,620 € Six-Year-High 2,750 1,400 2,500 1,200 2,250 1,000 2,000 1,750 800 1,500 600 1,535 € Six-Year-Low 520 € Six-Year-Low 0 0 2009 2010 2011 2012 2013 201
Slide 50: POLYSILICON: Prices Drive Sales Development
POLYSILICON: Prices Drive Sales Development POLYSILICON: Sales (€m), Poly Price* (€/kg), Operating EBITDA Margin** (%) Ø Operating-EBITDA-Margin 2010 - 2015: ~36% 1600 50 45 1400 40 1200 35 1000 30 800 25 20 600 15 400 10 54% 47% 27% 20% 36% 33% 200 5 0 0 2010 2011 2012 2013 2014 2015 2016e Sales Av
Slide 51: Target: Sustain Attractive Margins Through Economic Cycle
Target: Sustain Attractive Margins Through Economic Cycle Chemicals POLYSILICON 33%* >30% 16.1% >16% 2015 Target 2015 Target Ongoing Focus on Operational Excellence Cost road map driving cost down Increasing Share of Specialties ASP recovery to reinvestment level Some variation from F/X
Slide 52: Targets For The Next Years
Capital Market Day 2016 Targets For The Next Years 1 Extend Leverage Phase Part 1 2 Continue to Grow Above Chemical Production 3 Focus on Sustainability 4 Sustain Attractive Margins Through Economic Cycle Part 2 5 Generate Cash Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobia
Slide 53: Target: Generate Cash
Target: Generate Cash Capital Capital Intensity Structure Strong Cash Generation Working Capital Dividend Management Policy Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 52
Slide 54: Extension of Leverage Phase With Low Capital Intensity is Crucial For Cash Generation
Extension of Leverage Phase With Low Capital Intensity is Crucial For Cash Generation CapEx vs. Depreciation Expense WACKER Group (€m) 920 834 572 504 ~425 Ø 2008- 2013 2014 2015 2016e 2017e 2020e 2012 Create Leverage Siltronic POLYSILICON Other CHEMICALS Depreciation & Amortization Capital Market D
Slide 55: Low Capital Intensity is Supported by Asset Optimization
Low Capital Intensity is Supported by Asset Optimization Capacity Growth of Selective Products (1995 = 100%) Siloxane VAE 410% 470% 7% 90% 110% 6% 360% 320% 100% 100% 1995 2000 2005 2010 2015 2020 1995 2000 2005 2010 2015 2020 Installed Capacity (CapEx and Acquisitions) Process optimization, Product
Slide 56: Continued Sound Working Capital Management Drives Cash Generation
Continued Sound Working Capital Management Drives Cash Generation Inventories (€m) Trade Receivables (€m) DIO 40 65 64 52 57 59 52 DSO 45 51 54 52 53 51 52 800 800 600 600 400 400 200 200 0 0 2010 2011 2012 2013 2014 2015 H1 2010 2011 2012 2013 2014 2015 H1 2016 2016 Capital Market Day, Burghausen,
Slide 57: Strong Cash Flow – All Through Extended Leverage Phase
Strong Cash Flow – All Through Extended Leverage Phase Net Cash Flow* (€m) 838 739 713 665 -497 -816 -555 -870 216 110 23 -131 Ø 2008-2012 2013 2014 2015 2016e ~2020e Create Leverage Gross-Cash Flow CapEx (Cash Flow) Net-Cash Flow * Prepayments not considered Capital Market Day, Burghausen, October
Slide 58: Capital Structure: Total Leverage Driven by Pension Provisions
Capital Structure: Total Leverage Driven by Pension Provisions Development of Total Leverage (€m) 3,929 3,528 3,139 2,984 2,719 1,758 2,416 1,236 1,612 1,079 1,634 1,244 527 689 475 1,048 847 453 360 1,032 1,203 1,081 1,074 1,154 701 792 -264 -96 2010 2011 2012 2013 2014 2015 H1/2016 Pension Provisi
Slide 59: Pension Provisions Increased Substantially Over Last 5 Years
Pension Provisions Increased Substantially Over Last 5 Years Provisions for Pensions (€m) – Discount Rate (%) 2,416 4.50% 4.50% 3.80% 1,758 3.50% 1,612 1,236 2.75% 1,079 2.30% Increase due to IAS 19 revised 666 1.60% 475 527 569 2010 2011 2012 2013 2014 2015 H1/2016 Discount Rate (GER) Capital Marke
Slide 60: WACKER Pension Funds: One-time Funding Considered, No Legal Obligation
WACKER Pension Funds: One-time Funding Considered, No Legal Obligation WACKER defined benefit plans WACKER pension funds Pension provision = defined benefit obligation WACKER pension funds in Germany less plan assets of pension funds („Pensionskasse“) and the U.S. Defined benefit obligation:
Slide 61: Prepayments: <€400m Still in Balance Sheet – Reduction of €150m Per Year
Prepayments: <€400m Still in Balance Sheet – Reduction of €150m Per Year Expected Group Prepayments (€m) 1,203 1,032 1,048 847 689 - €150m p.a. 453 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 60
Slide 62: Net Financial Debt Already at Target Level of <1 x EBITDA
Net Financial Debt Already at Target Level of <1 x EBITDA Leverage Target: Net Financial Debt / EBITDA 1.2 1.0 1.0 ~1.0 0.9 Leverage Target: Net Financial Debt <1 x EBITDA -0.1 -0.2 2010 2011 2012 2013 2014 2015 2016e Net Financial Debt = Sum of cash and cash equivalents, noncurrent and current secu
Slide 63: Financial Debt: Flexibility And Strong Liquidity Secured
Financial Debt: Flexibility And Strong Liquidity Secured Financial Debt: Financial Status as of June 30, 2016 Measures in 2015 and 2016 2015: Liquidity: €515m Repayment of Schuldscheindarlehen Drawn Facilities: €1,669m Total volume: €150m Undrawn Facilities: €848m Repayment of Chinese
Slide 64: Extended Leverage Phase: Dividend Target Raised to 50% of Net Income
Extended Leverage Phase: Dividend Target Raised to 50% of Net Income Dividend per share (€) New dividend policy Basic dividend policy: Dividend Target: 50% payout of net income 3,2 (raised from 25% minimum) Temporary deviations possible 2,2 2,0 Boundary conditions: 1,5 Overall business condi
Slide 65: Capital Market Day 2016 Targets – Part 1
WACKER Capital Market Day 2016 Introduction Rudolf Staudigl, CEO Targets – Part 1 Rudolf Staudigl, CEO Targets – Part 2 Tobias Ohler, CFO Outlook Tobias Ohler, CFO Summary Rudolf Staudigl, CEO Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 64
Slide 66: Profit and Loss Statement: Declining Depreciation, Strict Cost Control And Lower Tax Rate
Profit and Loss Statement: Declining Depreciation, Strict Cost Control And Lower Tax Rate WACKER P&L H1 2016 (€m) Targeted Development until 2020: €m H1 2016 Gross profit margin: Sales 2,701 Influenced by F/X and raw material Cost of goods sold -2,220 Gross profit from sales 480 prices Gross pro
Slide 67: Balance Sheet: Maintaining Financial Stability And Efficient Capital Structure
Balance Sheet: Maintaining Financial Stability And Efficient Capital Structure Group Balance Sheet – Target Structure Drivers Drivers Equity ratio partly fluctuating with provisions for pensions Non-current Equity (historical level ~ 40%) assets Dividend policy: ~ 50% of net income CapEx below
Slide 68: Guidance Update FY 2016
Guidance Update FY 2016 Targeting Upper End of EBITDA Guidance Range 2015 Outlook 2016 Sales (€m) 5,296 Slight increase EBITDA (€m) 1,049 Expecting FY 5-10% higher EBITDA excl. special income (€m) 911 excl. special income EBITDA margin (%) 19.8 Somewhat lower Group net income (€m) 242 Below 2015 Net
Slide 69: Capital Market Day 2016 Targets – Part 1
WACKER Capital Market Day 2016 Introduction Rudolf Staudigl, CEO Targets – Part 1 Rudolf Staudigl, CEO Targets – Part 2 Tobias Ohler, CFO Outlook Tobias Ohler, CFO Summary Rudolf Staudigl, CEO Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 68
Slide 70: Growth and Cash – Summary
Capital Market Day 2016 Growth and Cash A Foundation for Growth Targets for the next years Our business portfolio 1 Extend Leverage Phase WACKER: FY 2015 Sales 2 Continue to Grow Above Chemical Production €5.3bn Global asset base in place 3 Focus on Sustainability 4 Sustain Attractive Margins Th
Slide 71: 2016 Capital Market Day – Wacker Chemie AG
CREATING TOMORROW`S SOLUTIONS 2016 Capital Market Day – Wacker Chemie AG Growth and Cash Burghausen, October 11, 2016 Rudolf Staudigl (CEO), Tobias Ohler (CFO) Capital Market Day, Burghausen, October 2016 Rudolf Staudigl, CEO; Tobias Ohler, CFO 70