Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Wacker Chemie Ag Ord — Q1 2022 Earnings Presentation
25 slides from Wacker Chemie's earnings presentation, Apr 28, 2022
Slide 1: Q1 2022 – Conference Call Note
CREATING TOMORROW`S SOLUTIONS Q1 2022 – Conference Call Note Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) April 28, 2022 Ticker: WCH Q1 2022 – Conference Call Note www.wacker.com April 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 Q1 2022 Highlights
WACKER Q1 2022 Highlights Financials Operations Sustainability €2.1bn Strong demand in Commitment to Chemicals TCFD1 Sales (+53% yoy) Very strong demand across entire portfolio Most plants fully loaded; pricing Preparing climate- Ambitious initiatives ongoing to counter related financial risk unprec
Slide 4: CMD 2022: Proven Successes – Transformation to Full Specialty Setup
CMD 2022 Proven Successes – Transformation to Full Specialty Setup CHEMICALS BIOSOLUTIONS POLYSILICON Specialty transformation Biotechnology foundation High-end focus Strong profitability Innovation and technologies #1 in semi Regional expansion Bolt-on acquisitions Improved mix Focuse
Slide 5: CMD 2022: Addressing Customer Demand – Strategies and Targets
CMD 2022 Addressing Customer Demand – Strategies and Targets CHEMICALS BIOSOLUTIONS POLYSILICON Accelerate Growth Incubate, Innovate, Grow Strengthen Semi Position Demand pull from sustainability Demand pull from advanced Demand pull from rapidly growing medicine and clean food semi/solar mark
Slide 6: CMD 2022: Clear Path Forward: Focus On Growth And Value
CMD 2022 Clear Path Forward: Focus On Growth And Value Key Initiatives and Performance Indicators 2022 - 2026 CHEMICALS BIOSOLUTIONS POLYSILICON Further regionalizing supply chain Strong investment in innovation Investments in semi and and earnings-accretive bolt-ons and early-stage bolt-ons c
Slide 7: CMD 2022: Maintaining Resilience
CMD 2022 Maintaining Resilience Sourcing Initiatives Pricing Power Lean Cost Structure Long-term strategies and short- Successful pricing initiatives Overall cost “Shape the future” term actions to mitigate price 2022e savings €200m volatility Stable financial performance allows for continuo
Slide 8: CMD 2022: Capital Allocation Priorities
CMD 2022 Capital Allocation Priorities GROWTH High-Return Growth CapEx 1 CapEx and M&A Accelerate chemical capacities in all regions, diversified portfolio of downstream projects Early-stage assets, create synergies in BIOSOLUTIONS; strengthen market position, extend value chain in CHEMICALS SHA
Slide 9: CMD 2022: Faster Growth, Bolder Moves, Higher Profitability
CMD 2022 Faster Growth, Bolder Moves, Higher Profitability Targets 2030 CREATING TOMORROW’S Sales: >€10bn SOLUTIONS Volume/Mix CAGR: 1.5-2x Historic Our solutions make a better world for generations ROCE: 2x Cost of Capital EBITDA Margin: >20% CO2e: -50% Emissions Q1 2022 – Conference Call
Slide 10: Profit & Loss Statement
Profit & Loss Statement Successful Pricing, Strong Volumes and Good Cost Performance WACKER P&L Q1 2022 (€m) Comments Sales +53% yoy €m Q1 2022 Q1 2021 Volume/Mix +6%, Price +43%, FX 3% Sales 2,076.2 1,359.6 Gross profit from sales 299.9 EBITDA supported by pricing actions to compensate for 667.
Slide 11: Balance Sheet Composition
Balance Sheet Composition Equity Increases by >€800m on Earnings and Lower Pension Deficit Balance sheet (%) Characteristics 3/31/22 Strong Liquidity: Assets Liabilities Cash & securities of €1,685m €8.1bn €8.5bn €8.1bn €8.5bn (Dec 31, 2021: €1,983m) Working capital increases due to high sales
Slide 12: SILICONES: Strong Performance Driven by Pricing Initiatives
SILICONES Strong Performance Driven by Pricing Initiatives and Trailing Raw Material Effects Sales (€m) Highlights Q1 +50% 921 Strong demand across all sectors with price and 613 649 680 657 volume/mix driving sales Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 EBITDA benefited from trailing raw mater
Slide 13: POLYMERS: Further Price Increases to Counter Strong Rise in Costs
POLYMERS Further Price Increases to Counter Strong Rise in Costs Sales (€m) Highlights Q1 +48% 518 Continued strong demand 404 469 451 350 Price initiatives address rise in raw materials, energy Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 and logistics EBITDA (€m) / margin EBITDA supported by good
Slide 14: BIOSOLUTIONS: Selected for Germany's Pandemic Preparedness Plan
BIOSOLUTIONS: WACKER Selected for Germany’s Pandemic Preparedness Plan Sales (€m) Highlights Q1 +14% 78 80 Strong sales growth in BioIngredients 68 71 77 EBITDA held back by Life Science Chemicals force Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 majeure and integration costs EBITDA (€m) / margin
Slide 15: POLYSILICON: Very Strong Demand for Solar- and Semi-Grade
POLYSILICON Very Strong Demand for Solar- and Semi-Grade Polysilicon Sales (€m) Highlights Q1 +76% Prices sequentially higher 470 525 353 409 298 EBITDA of €225m achieved despite substantially higher Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 energy and silicon metal costs versus Q4 EBITDA (€m) / m
Slide 16: Net Financial Position
Net Financial Position Higher Investments in Working Capital and Payment for SICO Acquisition Net Financial Position Bridge per 3/31/2022 (€m) 293 547 0 -14 521 -275 -30 Net financial asset Cash flow Cash flow from Dividend Lease Exchange-rate Net financial assets as of Dec. from operating long-term
Slide 17: Guidance FY 2022
Guidance FY 2022 In €m FY 2021 Outlook 2022 Sales 6,208 Around €7,500m (Previously around €7,000m) EBITDA 1,539 €1,200 – 1,500m (trending towards upper end of range) EBITDA margin (%) 24.8% Substantially lower than last year Net cash flow 761 Clearly positive, substantially lower than last year CapE
Slide 18: Q1 2022 – Q&A Session
CREATING TOMORROW`S SOLUTIONS Q1 2022 – Q&A Session Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) April 28, 2022 Ticker: WCH Q1 2022 – Conference Call Note www.wacker.com April 28, 2022 17
Slide 19: Appendix: Q1 2022 Results – Sales and EBITDA Breakdown
Appendix: Q1 2022 Results – Sales and EBITDA Breakdown Q1 2022 Sales (%) Q1 2022 EBITDA (%) 2% 8% 25% 35% 4% 25% Total: Total: €2.1bn 14% €644m 44% 43% 0% SILICONES POLYMERS BIOSOLUTIONS POLYSILICON OTHERS / CONSOLID. Q1 2022 – Conference Call Note April 28, 2022 18
Slide 20: Appendix: Q1 2022 Results – P&L
Appendix: Q1 2022 Results – P&L In €m Q1 2022 Q1 2021 % YoY Q4 2021 % QoQ Sales 2,076 1,360 53% 1,688 23% EBITDA 644 258 >100% 513 26% EBITDA margin 31.0% 19.0% - 30.2% - EBIT 550 166 >100% 382 44% EBIT margin 26% 12% - 23% - Net income for the period 403 118 >100% 272 48% EPS in € 7.92 2.29 >100% 5
Slide 21: Appendix: Q1 2022 Results – Breakdown by Business
Appendix: Q1 2022 Results – Breakdown by Business Sales EBITDA EBITDA Margin (%) In €m / % Q1 2022 Q1 2021 % YoY Q4 2021 % QoQ Q1 2022 Q1 2021 % YoY Q4 2021 % QoQ Q1 2022 Q1 2021 Q4 2021 Chemicals 1,438 963 49% 1,109 30% 372 172 >100% 203 83% 25.9 17.8 18.3 SILICONES 921 613 50% 657 40% 279 122 >100
Slide 22: Appendix: 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 3.8 4.0 – 6.0 Europe other 4.9 8.1 13.0 13.0 19.9 22.0 – 26.0 Europe total 6.8 11.5 21.7 21.2 29.0 32.0 – 40.0 Australia 1.3 3.8 4.4 5.1 5.
Slide 23: Appendix: Modelling Help
Appendix: Modelling 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. €4-5m per quarter). Others
Slide 24: Appendix: Raw Materials, Power and Gas Show Strong Price Inflation
Appendix: Raw Materials, Power and Gas Show Strong Price Inflation Si-Metal (€/mt) Electricity (€/MWh) 10,000 300 294 € High 8,200 € High 8,000 200 6,000 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 Spot
Slide 25: WACKER: Issuer, Contact and Additional Information
WACKER: Issuer, Contact and Additional Information Issuer and Contact Financial Calendar INVESTOR RELATIONS CONTACTS 05/20/22 Annual General Meeting 07/28/22 Q2 2022 Results Joerg Hoffmann, CFA Tel. +49 89 6279 1633 | joerg.hoffmann@wacker.com 10/27/22 Q3 2022 Results Scott McCollister Tel. +49 89 6