Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Wacker Chemie Ag Ord — Q3 2023 Earnings Presentation
17 slides from Wacker Chemie's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 – Conference Call Note
CREATING TOMORROW’S SOLUTIONS Q3 2023 – Conference Call Note Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) October 26, 2023 Q3 2023 – Conference Call Note October 26, 2023 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 2023 Highlights
WACKER Q3 2023 Highlights Financials Operations Sustainability €1.52bn Continued Headwinds WACKER shortlisted for Sales (-29% yoy) Chemicals held back by ongoing weak demand the German Difficult Driven primarily by lower ASP and volumes Sustainability markets €152m 10.0% Much Lower Solar- Prize in 2
Slide 4: FY 2023 Guidance Confirmed at Lower Half of Prior Range
FY 2023 Guidance Confirmed at Lower Half of Prior Range Updated FY 2023 Group Guidance Sales at about €6.5bn (previously €6.5 – 6.8bn) EBITDA at €0.8 – 0.9bn (previously €0.8 – 1.0bn) Other financial KPIs unchanged WACKER Expands Specialty Silicone Production Investments of some €150m for th
Slide 5: EBITDA of €152m in Q3 2023
Profit & Loss Statement EBITDA of €152m in Q3 2023 Profit & Loss (€m) Comments Q3 2023 Q3 2022 Sales -29% yoy Volume/Mix -7%, Price -19%, FX -3% Sales 1,523 2,132 EBITDA -67% yoy Gross profit from sales 198 488 Result primarily defined by lower ASPs and volumes Gross margin 13.0% 22.9% EBITDA 15
Slide 6: Resilient Financials with €4.7bn in Equity and €1.4bn in Liquidity
Balance Sheet Composition Resilient Financials with €4.7bn in Equity and €1.4bn in Liquidity Balance sheet (%) Characteristics 9/30/23 Assets Liabilities Cash & Securities: High level of liquidity at €1.4bn €9.4bn €8.8bn €9.4bn €8.8bn Net Working Capital: Lower by €100m to €1.6bn 44% 50% 54% 54%
Slide 7: SILICONES: No Demand Recovery
SILICONES No Demand Recovery Sales (€m) Highlights Q3 -24% 890 Weak demand across all regions 706 760 699 673 Prices under pressure for Standards, some negative pricing effects from Specialties Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 EBITDA burdened by demand-driven adverse mix effects, EBITDA
Slide 8: POLYMERS: Defending Margins in a Weak Demand Environment
POLYMERS Defending Margins in a Weak Demand Environment Sales (€m) Highlights Q3 -22% 504 Volumes yoy & qoq comparable, lower ASP drives sales 421 428 417 393 development Weak market demand particularly in Europe Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 EBITDA higher yoy, mainly from positive n
Slide 9: BIOSOLUTIONS: Weaker Demand than Expected
BIOSOLUTIONS Weaker Demand than Expected Sales (€m) Highlights Q3 -13% 89 91 Continued weaker demand for established products 81 77 77 EBITDA burdened by upfront costs related to the German pandemic preparedness plan and digitalization Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 EBITDA (€m) / margin
Slide 10: POLYSILICON: Significantly Lower Prices for Solar-Grade Polysilicon
POLYSILICON Significantly Lower Prices for Solar-Grade Polysilicon Sales (€m) Highlights Q3 -45% 619 574 Sequential EBITDA declines mainly due to lower prices 441 513 342 Lower production volumes due to plant maintenance Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Ongoing solar market price differ
Slide 11: Net Financial Position: Strong Cash Conversion in Q3
Net Financial Position Strong Cash Conversion in Q3 as Working Capital Unwinds Net Financial Position Bridge per 9/30/2023 (€m) 627 409 -548 -596 -14 -41 -164 Net financial asset Cash flow Cash flow from Dividend Lease Exchange-rate Net financial asset as of from operating long-term paid, liabilitie
Slide 12: Guidance FY 2023 Confirmed, Sales & EBITDA Expected in Lower Half
Appendix Guidance FY 2023 Confirmed, Sales & EBITDA Expected in Lower Half of Prior Range In €m FY 2022 Outlook 2023 Sales 8,209 At about €6.5bn (previously: €6.5 – 6.8bn) EBITDA 2,081 €0.8 – 0.9bn (previously: €0.8 – 1.0bn) EBITDA margin (%) 25.4 Substantially lower than last year Net cash flow 439
Slide 13: WACKER Q3 2023 Results
Appendix WACKER Q3 2023 Results In €m Q3 2023 Q3 2022 % YoY Sales 1,523 2,132 -29% EBITDA reported 152 457 -67% EBITDA-Margin 10.0% 21.4% EBIT 49 351 -86% EBIT-Margin 3.2% 16.4% Net income for the period 34 259 -87% EPS 0.56 5.08 -89% CapEx 155 131 18% Net Cash Flow 128 296 -57% Net Debt 164 -394 n.
Slide 14: Q3 2023 Results – Breakdown by Business
Appendix Q3 2023 Results – Breakdown by Business Sales EBITDA EBITDA Margin (%) In €m / % Q3/23 Q3/22 % YoY Q2/23 % QoQ Q3/23 Q3/22 % YoY Q2/23 % QoQ Q3/23 Q3/22 Q2/23 Chemicals 1,066 1,394 -23% 1,115 -4% 126 258 -51% 128 -1% 11.8 18.5 11.4 SILICONES 673 890 -24% 699 -4% 51 198 -74% 52 -1% 7.6 22.2
Slide 15: Strong Growth of Global PV Markets in 2023 Expected
Appendix Strong Growth of Global PV Markets in 2023 Expected Country 2019 2020 2021 2022 2023e Germany 4.0 4.8 5.3 7.3 10 – 13 Spain 4.7 2.6 3.8 6.9 7 – 10 Europe other 13.0 13.0 19.9 28.8 33 – 37 Europe total 21.7 21.2 29.0 43.0 50 – 60 USA 13.3 19.2 25 20.2 30 – 35 Japan 7.5 8.2 7.5 6.5 6–8 China
Slide 16: 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 2020 2021 2022 2023 Source: CRU, Si-Metal Spot FD Europe Source: EEX, Baseload Front Contract Avg. Month VAM (€/mt) Natural Gas (€/MWh) 4,000 250 3
Slide 17: WACKER: Issuer, Contact and Additional Information
WACKER: Issuer, Contact and Additional Information Issuer and Contact Financial Calendar INVESTOR RELATIONS CONTACTS 03/12/24 FY 2023 Results 04/25/24 Q1 2024 Results Joerg Hoffmann, CFA 05/08/24 Annual General Meeting, Munich Tel. +49 89 6279 1633 | joerg.hoffmann@wacker.com 06/11-12/24 Capital Mar