Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Wacker Chemie Ag Ord — Q2 2022 Earnings Presentation
24 slides from Wacker Chemie's earnings presentation, Jul 28, 2022
Slide 1: Q2 2022 – Conference Call Note
CREATING TOMORROW`S SOLUTIONS Q2 2022 – Conference Call Note Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) July 28, 2022 Ticker: WCH Q2 2022 – Conference Call Note www.wacker.com July 28, 2022 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 2022 Highlights
WACKER Q2 2022 Highlights Financials Operations Sustainability €2.2bn Pricing Initiatives New Diversity Goals 2030 Sales (+45% yoy) in Chemicals to address unprecedented raws and energy Raising Strong demand across entire portfolio Every second management position outside of Germany Sales & €626m 28
Slide 4: WACKER is Taking Actions for Power and Gas Challenges
WACKER is Taking Actions for Power and Gas Challenges Electricity (€/MWh, Germany) German Energy Prices Escalate due to Reduced Gas Flows 400 357 € High 2nd level in the German gas emergency plan triggered at the end of June 300 200 Production and hedges are unaffected 100 Natural gas supply v
Slide 5: Guidance Substantially Raised, Progress Towards New 2030 Targets
Guidance Substantially Raised, Progress Towards New 2030 Targets FY 2022 Group Guidance Sales at around €8.0 – 8.5bn (previously around €7.5bn) EBITDA in range of €1.8 – 2.3bn (previously €1.2 – 1.5bn), with the lower end provisioning for potential gas shortages on Group level (€200 – 250m) Gu
Slide 6: Profit & Loss Statement
Profit & Loss Statement Successful Price Management More Than Offsets Cost Inflation WACKER P&L Q2 2022 (€m) Comments Sales +45% yoy €m Q2 2022 Q2 2021 Volume/Mix +4%, Price +36%, FX 5% Sales 2,174 1,501 Gross profit from sales 374 EBITDA supported by pricing actions to compensate for 646 Gross
Slide 7: Equity Increases by ~€1.5bn on Earnings and Lower Pension Deficit
Balance Sheet Composition Equity Increases by ~€1.5bn on Earnings and Lower Pension Deficit Balance sheet (%) Characteristics 6/30/22 Strong Liquidity: Assets Liabilities Cash & securities of €1,678m €8.1bn €8.8bn €8.1bn €8.8bn (Dec 31, 2021: €1,983m) 38.1% Working capital increases due to hig
Slide 8: Pension Deficit ~€2.0bn Lower Today than at the End of 2020
Pension Deficit ~€2.0bn Lower Today than at the End of 2020 Pensions Declines on Higher Discount Rate, Voluntary Top-Ups and CTA1 2,713 2,275 1,795 1,813 1,618 664 2017 2018 2019 2020 2021 Jun-22 2.1% 2.0% 1.3% 0.7% 1.2% 3.3% Pension Deficit €m % Discount Rate 1) Voluntary top-ups 2019/20 ~€150m, CT
Slide 9: SILICONES: Strong Performance Continued
SILICONES Strong Performance Continued Sales (€m) Highlights Q2 +44% 921 936 Sales driven by strong specialty pricing and 1st time 649 680 657 consolidation of SICO Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Strong growth in Health & Care, Consumer applications EBITDA (€m) / margin Pricing drives
Slide 10: POLYMERS: Price Increases Counter Strong Rise in Costs
POLYMERS Price Increases Counter Strong Rise in Costs Sales (€m) Highlights Q2 +37% 553 Continued strong demand 469 451 518 404 Price initiatives address rise in raw materials, energy Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 and logistics EBITDA (€m) / margin +75% Outlook 2022 85 93 91 Unchange
Slide 11: BIOSOLUTIONS: Investments to Drive Innovation and Growth
BIOSOLUTIONS: Investments to Drive Innovation and Growth Sales (€m) Highlights Q2 +18% 84 Sales growth in BioIngredients 71 78 80 77 Force majeure terminated in May ahead of plan Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Groundbreakings for a mRNA production site in Halle EBITDA (€m) / margin an
Slide 12: POLYSILICON: Continued Strong Demand for Solar and Semi Applications
POLYSILICON Continued Strong Demand for Solar and Semi Applications Sales (€m) Highlights Q2 +61% Prices sequentially higher 470 525 568 353 409 Very strong demand for solar and semi polysilicon Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 EBITDA decreased following sequentially higher costs EBITDA
Slide 13: Net Financial Position
Net Financial Position Payment for SICO Acquisition and €400m Dividend Payment Net Financial Position Bridge per 6/30/2022 (€m) 456 547 -342 -397 119 -120 -25 Net financial asset Cash flow Cash flow from Dividend Lease Exchange-rate Net financial as of Dec. from operating long-term paid, liabilities
Slide 14: Updated Guidance FY 2022
Updated Guidance FY 2022 In €m FY 2021 Outlook 2022 Sales 6,208 €8.0 – 8.5bn (Previously: €7.5bn) EBITDA 1,539 €1.8 – 2.3bn (Previously: €1.2 – 1.5bn) EBITDA margin (%) 24.8% On a par with last year (Previously: Substantially lower than last year) Net cash flow 761 Clearly positive, substantially lo
Slide 15: Appendix
CREATING TOMORROW`S SOLUTIONS Appendix Ticker: WCH Q2 2022 – Conference Call Note www.wacker.com July 28, 2022 14
Slide 16: WACKER Invests in a New mRNA Competence Center in Halle
Appendix: WACKER Invests in a New mRNA Competence Center in Halle mRNA Competence Center Pandemic Preparedness Fast Growing mRNA CDMO Plan Market Production of mRNA vaccines / therapies for Covid / other WACKER / CordenPharma cover mRNA enable advanced therapies indications the entire vaccine
Slide 17: WACKER Opens New Production Site for Silicones in India
Appendix: WACKER Opens New Production Site for Silicones in India Silicone Catch Up in India Drives Very Strong Growth 10.7 10.0 New Production Site Strengthen / Expand #1 Market Position With 165,000 m2, the new facility is 3x the size of the existing site Local expert team with strong track re
Slide 18: Q2 2022 Results – Sales and EBITDA Breakdown
Appendix: Q2 2022 Results – Sales and EBITDA Breakdown Q2 2022 Sales (%) Q2 2022 EBITDA (%) 2% 6% 26% 34% 4% Total: 1% Total: 25% €2.2bn €626m 15% 43% 44% SILICONES POLYMERS BIOSOLUTIONS POLYSILICON OTHERS / CONSOLID. Q2 2022 – Conference Call Note July 28, 2022 17
Slide 19: Q2 2022 Results – P&L
Appendix: Q2 2022 Results – P&L In €m Q2 2022 Q2 2021 % YoY Q1 2022 % QoQ Sales 2,174 1,501 45% 2,076 5% EBITDA 626 321 95% 644 -3% EBITDA margin 28.8% 21.4% - 31.0% - EBIT 529 228 >100% 550 -4% EBIT margin 24.3% 15.2% - 26.5% - Net income for the period 391 173 >100% 403 -3% EPS in € 7.67 3.39 >100
Slide 20: Q2 2022 Results – Breakdown by Business
Appendix: Q2 2022 Results – Breakdown by Business Sales EBITDA EBITDA Margin (%) In €m / % Q2 2022 Q2 2021 % YoY Q1 2022 % QoQ Q2 2022 Q2 2021 % YoY Q1 2022 % QoQ Q2 2022 Q2 2021 Q1 2021 Chemicals 1,490 1,052 42% 1,438 4% 368 186 98% 372 -1% 24.7 17.7 25.9 SILICONES 936 649 44% 921 2% 277 134 >100%
Slide 21: Strong Growth of Global PV Markets in 2022 Expected
Appendix: Strong Growth of Global PV Markets in 2022 Expected Country 2017 2018 2019 2020 2021 2022e Germany 1.8 3.0 4.0 4.9 5.3 6.0 – 8.0 Spain 0.1 0.4 4.7 3.3 4.9 4.0 – 6.0 Europe other 4.9 8.1 13.0 13.0 19.8 22.0 – 26.0 Europe total 6.8 11.5 21.7 21.2 30.0 32.0 – 40.0 Australia 1.3 3.8 4.4 5.1 5.
Slide 22: Modeling Help
Appendix: Modeling Help Siltronic AG At-equity reinstated at end 2021 for entire year Investment income is reported in WACKER income statement (P&L) Investment income equals 30.8% of the net income attributable to the shareholders of Siltronic less the PPA (approx. €3m per quarter). Siltroni
Slide 23: Raw Materials, Power and Gas Show Strong Price Inflation
Appendix: Raw Materials, Power and Gas Show Strong Price Inflation Si-Metal (€/mt) Electricity (€/MWh) 10,000 400 357 € High 8,000 8,200 € High 300 6,000 200 4,000 100 2,000 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: CRU, Si-Metal
Slide 24: WACKER: Issuer, Contact and Additional Information
WACKER: Issuer, Contact and Additional Information Issuer and Contact Financial Calendar INVESTOR RELATIONS CONTACTS 10/27/22 Q3 2022 Results Joerg Hoffmann, CFA Tel. +49 89 6279 1633 | joerg.hoffmann@wacker.com Scott McCollister Tel. +49 89 6279 1560 | scott.mccollister@wacker.com Publications Wack