Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Investor Day (December 2021)
35 slides from Wacker Chemie's investor day presentation, Dec 16, 2021
Slide 1: WACKER Virtual CMD Series: Polysilicon and Sustainability
CREATING TOMORROW`S SOLUTIONS WACKER Virtual CMD Series: POLYSILICON and SUSTAINABILITY Wacker Chemie AG, Dec 16, 2021 Ticker: WCH © Wacker Chemie AG www.wacker.com Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 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: Virtual CMD Series Roadmap
WACKER Virtual CMD Series Roadmap June 2020 WACKER Strategy Update - Delivering on our 5 Targets Dec 2020 SILICONES & POLYMERS - Specialties Growth & Performance Based Substitution June 2021 BIOSOLUTIONS and R&D - Accelerated Growth with Cutting-Edge Technologies Today POLYSILICON and SUSTAINBILITY
Slide 4: Agenda for Today
Agenda for Today Agenda 10:00 - 11:00 AM CET POLYSILICON / SUSTAINABILITY Our Speakers Christian Hartel Tobias Brandis CEO President POLYSILICON © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 2021 3
Slide 5: Polysilicon
CREATING TOMORROW`S SOLUTIONS POLYSILICON Tobias Brandis Ticker: WCH © Wacker Chemie AG www.wacker.com Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 2021 4
Slide 6: The Market Leader in Semiconductor and High-End Solar
POLYSILICON The Market Leader in Semiconductor and High-End Solar Business card High-End Strategy Industry Benchmark Financial Performance 38% Clear #1 market position in WACKER quality and process semiconductor polysilicon and stability set industry benchmarks n-type mono for solar 26% €401m €290m
Slide 7: World Class Supply Chain and Efficiency
POLYSILICON World Class Supply Chain and Efficiency WACKER POLYSILICON at a glance Fully integrated production Benchmark for energy consumption and carbon-footprint Innovative closed recycling loops of by-products Backward integrated in Si-metal (Norway) and strong sourcing in Europe and Ameri
Slide 8: World Class Quality for High-End Markets
POLYSILICON World Class Quality for High-End Markets Strategic markets and competitive edge Bulk Surface Process WACKER High-End Markets Purity Purity Stability Share Semi Mono n-type Mono p-type Multi p-type Source: WACKER © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAINABILITY, Decem
Slide 9: Focus on High-End Markets and Costs Down Improves Earnings
POLYSILICON Focus on High-End Markets and Costs Down Improves Earnings Progress achieved Shift to high-end markets Cost reductions1 Driving margin up % of >40% -25% volume 100% shipped Price 26% Mix Cost €290m 2017 2021e 2017 2021e 2017 2021e2 High-End (semi + n-type) Cost roadmap POLYSILICON EBITDA
Slide 10: Nearly Half of all Computer Microchips Contain WACKER Polysilicon
POLYSILICON Nearly Half of all Computer Microchips Contain WACKER Polysilicon Semiconductor market growth Strong and continued growth in 300mm1 wafer bn cm2 +5% +2% +8% Connectivity Industry 4.0 +6% 2017 2020 2025e E-mobility 300 mm 200 mm <200 mm CAGR Artificial Intelligence Source: 1) WACKER estim
Slide 11: Growth Driver 300mm Wafer Relies on Highest Quality Polysilicon
POLYSILICON Growth Driver 300mm Wafer Relies on Highest Quality Polysilicon Demanding design rules on 300 mm Shift to smaller nodes1 Fast & power efficient transistors High barriers to entry Reliability of polysilicon quality essential % for increasingly demanding design rules <5nm # of transistor
Slide 12: Strengthen #1 Position in Semi
POLYSILICON Strengthen #1 Position in Semi Investing in capacities and capabilities Semi-market characteristics Strong volume growth Targeted CapEx for semi Attractive business with stable pricing and growing volumes mt €m 100 3 major semi polysilicon suppliers into +50% 3x 300 mm higher +100% C
Slide 13: Strong Solar Market Growth due to Lowest Cost and Sustainability
POLYSILICON Strong Solar Market Growth due to Lowest Cost and Sustainability Solar market dynamics Solar PPAs at grid parity1 Strong growth necessary2 €ct/kWh GW 8 14.000 new forecast 6 2x 4 higher 2 >500 GWs of annual installations needed 700 to fulfil Paris Climate Agreement 0 Germany US Middle
Slide 14: Leveraging Benchmark Quality and Process Stability
POLYSILICON WACKER Leveraging Benchmark Quality and Process Stability Rapid shift to high performance n-type Shift to high-performance1 Increasing poly requirements Leverage solar capacities GW installations/year Fully invested in solar 270 No future growth CapEx currently planned for solar 150
Slide 15: Clear Strategy: High-End, Costs Down and Focused CapEx
POLYSILICON Clear Strategy: High-End, Costs Down and Focused CapEx Roadmap defined Target: 100% high-end Further cost reductions1 Strategic focus % of -25% 1. Focus on high-end markets (semi and volume 100% n-type solar) shipped -30% 2. Increasing CapEx in Semi 3. Continue cost reductions 4. Leverag
Slide 16: Sustainability
CREATING TOMORROW`S SOLUTIONS SUSTAINABILITY Christian Hartel Ticker: WCH © Wacker Chemie AG www.wacker.com Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 2021 15
Slide 17: Sustainability @ WACKER: Commitment & Value Driver
SUSTAINABILITY @ WACKER COMMITMENT & VALUE DRIVER © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 2021 16
Slide 18: Sustainability @ WACKER: A 100+ Year Success Story
Sustainability @ WACKER: A 100+ Year Success Story …where it all started 100 years ago Hydropower based production in Burghausen Today World-Class integrated Technology leadership enabling CO2 abatement „Verbund“ sites and resource saving © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAI
Slide 19: Sustainability Has Two Dimensions for WACKER
Sustainability Has Two Dimensions for WACKER Improve own products and processes Value Up Footprint Down Enable customers to establish future technologies Collaboration beyond Enabling Products Supporting Products © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 202
Slide 20: Well On-Track to Meet Existing Sustainability Targets
Well On-Track to Meet Existing Sustainability Targets Value Up Footprint Down Collaboration Beyond Products meet sustainability Specific energy consumption Key suppliers meet sustainability criteria standards 100% Target Target Target 58% 50% 90% 90% 90% 76% -50% 2007 2020 2030 61% 50% Specific CO2
Slide 21: Setting New and More Ambitious Targets for 2030
Setting New and More Ambitious Targets for 2030 Value Up Footprint Down Collaboration Beyond Reduction in absolute GHG1 100% Products meet sustainability criteria 50% emissions (vs. 2020) 100% Key suppliers meet sustainability standards Reduction in absolute Reduction in specific water 15% withdrawa
Slide 22: Clear Pathway to Net Zero while Capitalizing on Growth Opportunities
Clear Pathway to Net Zero while Capitalizing on Growth Opportunities Growing with lower absolute emissions (m t CO2e) Footprint Down Benchmark operations with integrated production processes -50% Net 3.6 Zero Scope 2 Science Based Target1: -50% Scope 1 Reduction in absolute GHG emissions2 by 2030 (v
Slide 23: Defined CO2 Reduction Projects to Reduce GHG Emissions by 50%
Defined CO2 Reduction Projects to Reduce GHG Emissions by 50% CO2 neutral silicon metal Process transformation Green energy Biocarbon & biomass utilization RHYME Bavaria: CO2-to-methanol1 Leverage high electrification ratio Energy efficiency and CO2-reduction Green energy procurement Exp
Slide 24: Suppliers to Follow the Same Corporate Responsibility Guidelines as We Do
Suppliers to Follow the Same Corporate Responsibility Guidelines as We Do Collaboration Together for Sustainability Beyond 16,000 suppliers evaluated with Working within Together for Sustainability questionnaires and/or on-site audits by (TfS) to improve ESG performance of independent bodies supplie
Slide 25: Sustainability Has Two Dimensions for WACKER
Sustainability Has Two Dimensions for WACKER Improve own products and processes Value Up Footprint Down Enable customers to establish future technologies Collaboration beyond Enabling Products Supporting Products © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 202
Slide 26: WACKER Products and Technologies Enable Customers to Reduce CO2 and Save Resources
WACKER Products and Technologies Enable Customers to Reduce CO2 and Save Resources WACKER products for CO2 abatement Primary sources CO2 % of global emissions1 technologies Buildings 18% Enabling Products Products that enable Transport 16% new technologies Energy 24% Supporting Products Industry 5%
Slide 27: Strong Portfolio to Enable and Support Resource Saving Technologies
Strong Portfolio to Enable and Support Resource Saving Technologies WACKER GROUP SILICONES POLYSILICON >2/3 of sales address resource saving POLYMERS BIOSOLUTIONS Sales addressing resource saving technologies (incl. CO2 abatement) © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAINABILITY
Slide 28: Silicones: Pioneering Sustainability Across the Value Chain
SILICONES Pioneering Sustainability Across the Value Chain Buildings Transport Energy Industry Durable facade coatings Gap fillers for thermal mgmt Insulators and cables Pulp & paper defoamers Strong adhesives Housing control units Bonding pastes for windmills Water and surfactant savings Renewables
Slide 29: Polymers: Building a Sustainable Tomorrow
POLYMERS Building a Sustainable Tomorrow Buildings Buildings Industry Adhesives for ETICS Powder paints Additives for biodegradables Durable concrete additives Thin-bed tile adhesives Binders based on renewables Binders for mineral insulation Waterproofing membranes Adhesives for plastic to paper ©
Slide 30: Polysilicon: Enabling Photovoltaics and Microelectronic Applications
POLYSILICON Enabling Photovoltaics and Microelectronic Applications Transport Energy Industry Polysilicon for solar cells Semi for efficient cars Semi for grid optimization Semi for Automation © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 2021 29
Slide 31: Biosolutions: Innovative Partner in Life Science
BIOSOLUTIONS Innovative Partner in Life Science Accelerated growth with biotechnology Industry Agriculture / Pharma based on bio-based raw materials BioPharma Biologics Vaccines mRNA / pDNA Fruit-ripening control Building blocks for Agro BioIngredients Nutraceuticals Cysteine Cyclodextri
Slide 32: Sustainability as a Key Value Driver for WACKER
Sustainability as a Key Value Driver for WACKER Improve own products and processes Enable customers to establish future technologies Stay tuned for 2030 financial targets: CMD on March 29, 2022 © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 2021 31
Slide 33: Q&A Key take-aways
Q&A Key take-aways: POLYSILICON Sustainability Q&A 1. Focus on high-end markets (semi and n-type solar) 1. Sustainability is a key value driver for WACKER ? ? 2. Increasing CapEx in Semi 2. WACKER products and technologies enable customers to reduce CO2 and 3. Continue cost reductions save resources
Slide 34: New Sustainability Webpage
New Sustainability Webpage © Wacker Chemie AG Virtual CMD Series: POLYSILICON and SUSTAINABILITY, December 16, 2021 33
Slide 35: WACKER: Issuer, Contact and Additional Information
WACKER: Issuer, Contact and Additional Information Issuer and Contact Financial Calendar INVESTOR RELATIONS CONTACTS 03/15/22 Annual Report 2021 03/29/22 Virtual CMD: Strategy Update Joerg Hoffmann, CFA Tel. +49 89 6279 1633 | joerg.hoffmann@wacker.com 04/28/22 Q1 2022 Results 05/20/22 Annual Genera