Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Wacker Chemie Ag Ord — Q3 2024 Earnings Presentation
21 slides from Wacker Chemie's earnings presentation, Oct 28, 2024
Slide 1: Q3 2024 – Conference Call Note
CREATING TOMORROW’S SOLUTIONS Q3 2024 – Conference Call Note Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) October 28, 2024 Q3 2024 – Conference Call Note October 28, 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 Q3 2024 Highlights
WACKER Q3 2024 Highlights Financials Operations Sustainability €1.4bn Higher Plant Utilization Successful CO2 Drives Chemicals EBITDA higher Capture Pilot Sales (-6% yoy) yoy and qoq Driven by lower solar-grade polysilicon volumes Study The pilot plant achieved €152m 10.6% US Tariff Uncertainty CO2
Slide 4: CMD Recap: Our 2030 Targets
CMD Recap: Our 2030 Targets Refining Our Strategy to Adapt to Changing Market Conditions Group 2030 Targets Sales: > €10bn Focus on margin / mix over volume ROCE: 2x Cost of Capital EBITDA Margin: >20% CO2e: -50% Emissions Q3 2024 – Conference Call Note October 28, 2024 3
Slide 5: CMD Recap: Group 2030 Targets Drive Group EBITDA Margin to >20% by 2030
CMD Recap: Group 2030 Targets Drive Group EBITDA Margin to >20% by 2030 CHEMICALS BIOSOLUTIONS POLYSILICON Grow high-margin specialties & Leverage technology and fill new Continue Semi expansion & capitalize capitalize on regional opportunities capacities on regional solar prices EBITDA marg
Slide 6: CMD Recap: Clear Focus on Cost & Efficiency Measures
CMD Recap: Clear Focus on Cost & Efficiency Measures Savings Savings Savings > €100m p.a. > €75m p.a. > €25m p.a. Digitalization & Specific initiatives Regionalization as cost automatization 2024 - 2026 & efficiency driver Automation of production processes Focus on maintenance spend & Excelle
Slide 7: CMD Recap: CapEx With Focus On Highly Profitable Growth
CMD Recap: CapEx With Focus On Highly Profitable Growth Target CapEx split 2025-26 Flexible CapEx program €500-800m p.a. 709 <700 547 Sustainability/MoB 344 2021 2022 2023 2024e Going Forward Growth Investments according to market environment Diversified portfolio of downstream projects Cost/Eff
Slide 8: CMD Recap: Capital Allocation Priorities
CMD Recap: Capital Allocation Priorities Solid Financial Foundation Supports Growth & Shareholder Returns 1) Growth 2) Shareholder returns CapEx Dividend policy unchanged CapEx > Depreciation ~ 50% of net income from continuing operations M&A Earnings-accretive / early-stage bolt-ons Foundatio
Slide 9: Group Q3/24 EBITDA at €152m, with Chemicals EBITDA +€29m Higher YoY
Profit & Loss Statement Group Q3/24 EBITDA at €152m, with Chemicals EBITDA +€29m Higher YoY Profit & Loss (€m) Q3 Comments Sales -6% yoy Q3 2024 Q3 2023 Volume/Mix -4.7%, Price -1.3%, FX -0.5% Sales 1,430 1,523 Group EBITDA at prior year level Performance defined by high silicone specialties sal
Slide 10: Resilient Financials with €4.6bn in Equity and €1.0bn in Liquidity
Balance Sheet Composition Resilient Financials with €4.6bn in Equity and €1.0bn in Liquidity Balance sheet (%) Characteristics 9/30/24 Cash & securities: Assets Liabilities High level of liquidity at €1.0bn €8.9bn €8.9bn €8.9bn €8.9bn Working capital: +€370m higher due mainly to the higher inven
Slide 11: Silicones: Q3/24 EBITDA at €109m, Strong Specialties Sales
SILICONES Q3/24 EBITDA at €109m, Strong Specialties Sales Sales (€m) Comments Q3 +8% Specialties maintain strong volumes qoq 673 610 710 719 727 Pricing overall stable EBITDA supported by higher volumes, good mix and better Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 plant loading qoq EBITDA (€m)
Slide 12: Polymers: Q3/24 EBITDA at €46m
POLYMERS Q3/24 EBITDA at €46m, Supplier Force-Majeure and Weak Demand in China/Europe Sales (€m) Comments Q3 -7% Consumer with good growth yoy 393 342 372 389 365 Construction higher in America and MEA, offset by China and Europe Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 EBITDA lower qoq due to
Slide 13: Biosolutions: Q3/24 EBITDA at €14m, Growth in BioPharma
BIOSOLUTIONS Q3/24 EBITDA at €14m, Growth in BioPharma Sales (€m) Comments Q3 +29% BioPharma drives Sales and EBITDA growth yoy and qoq 93 98 100 77 72 First full quarter with German Pandemic Preparedness reservation fee Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Focus on filling new capacities E
Slide 14: Polysilicon: Q3/24 EBITDA at €29m, Solar Uncertainty Remains
POLYSILICON Q3/24 EBITDA at €29m, Semi Resilient, Solar Uncertainty Remains Sales (€m) Comments Q3 -39% Sales and EBITDA decline yoy and qoq due to lower 342 303 300 232 209 solar-grade volumes sold No further sales at low China domestic prices Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Uncertain
Slide 15: Financials with a Net Debt of €772m
Net Financial Position Financials with a Net Debt of €772m Net Financial Position Bridge per 9/30/2024 (€m) 52 -84 -457 -149 -108 -27 -772 Net financial debt Cash flow Cash flow from Dividend Lease Exchange-rate Net financial debt as of from operating long-term paid, liabilities effects as of Dec. 3
Slide 16: Modeling Help: OTHERS / U.S. IRA
Appendix Modeling Help: OTHERS / U.S. IRA OTHERS To ensure a true and fair view on segment performance we credit the expected payments (CO2 compensation) quarterly to the segments, debiting OTHERS CO2 compensation for FY 2024 will be received and recognized as income in the OTHERS segment in Q4/
Slide 17: Q3 2024 Results
Appendix Q3 2024 Results In €m Q3 2024 Q3 2023 % YoY Sales 1,430 1,523 -6% EBITDA reported 152 152 0% EBITDA-Margin 10.6% 10.0% EBIT 37 49 -24% EBIT-Margin 2.6% 3.2% Net income for the period 34 34 0% EPS 0.56 0.56 0% CapEx 149 155 -4% Net Cashflow -99 128 - Net Debt 772 164 >100% Q3 2024 – Conferen
Slide 18: Q3 2024 Results – Breakdown by Business
Appendix Q3 2024 Results – Breakdown by Business Sales EBITDA EBITDA Margin (%) In €m / % Q3/24 Q3/23 % YoY Q2/24 % QoQ Q3/24 Q3/23 % YoY Q2/24 % QoQ Q3/24 Q3/23 Q2/24 Chemicals 1,092 1,066 2% 1,108 -1% 155 126 23% 149 4% 14.2 11.8 13.4 SILICONES 727 673 8% 719 1% 109 51 111% 90 21% 15.0 7.6 12.6 PO
Slide 19: 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 20: Guidance: FY EBITDA Expected in Upper Half of Range
Appendix Guidance: FY EBITDA Expected in Upper Half of Range 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
Slide 21: WACKER: Issuer, Contact and Additional Information
WACKER: Issuer, Contact and Additional Information Issuer and Contact Financial Calendar INVESTOR RELATIONS CONTACTS 12/03/25 FY 2024 Results 30/04/25 Q1 2025 Results Joerg Hoffmann, CFA 07/05/25 Annual Shareholders Meeting Tel. +49 89 6279 1633 | joerg.hoffmann@wacker.com 31/07/25 Q2 2025 Results 3