Wacker Chemie Ag · XETR:WCH
Wacker Chemie — Wacker Chemie Ag Ord — Q2 2023 Earnings Presentation
19 slides from Wacker Chemie's earnings presentation, Jul 27, 2023
Slide 1: Q2 2023 – Conference Call Note
CREATING TOMORROW’S SOLUTIONS Q2 2023 – Conference Call Note Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO) July 27, 2023 Q2 2023 – Conference Call Note July 27, 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 Q2 2023 Highlights
WACKER Q2 2023 Highlights Financials Operations Sustainability €1.75bn Continued Headwinds 2023 WACKER Chemicals held back by ongoing INNOVATION Sales (-19% yoy) Driven primarily by lower ASP and volumes customer destocking, weak markets Prize Diversified Optimized polysilicon €256m 14.6% Higher Sol
Slide 4: Updated FY 2023 Guidance, Investments for Further Growth
Updated FY 2023 Guidance, Investments for Further Growth FY 2023 Group Updated Guidance Sales at €6.5 – 6.8bn (previously €7.0 – 7.5bn) EBITDA at €0.8 – 1.0bn (previously €1.1 – 1.4bn) ROCE lower than cost of capital, other KPI’s unchanged WACKER Invests to Realize 2030 Growth Targets SILICO
Slide 5: WACKER Strengthens Its Biotechnology Business with Acquisition of ADL
WACKER Strengthens Its Biotechnology Business with Acquisition of ADL Combination of WACKER & ADL creates one of Strong CMO1 position and good set up for the largest Biotech sites in Europe innovations in BioIngredients WACKER now owns the entire site in León, Spain WACKER continues to service A
Slide 6: Profit & Loss Statement: EBITDA of €256m in Q2 2023
Profit & Loss Statement EBITDA of €256m in Q2 2023 Profit & Loss (€m) Comments Q2 2023 Q2 2022 Sales -19% yoy Volume/Mix -7.0%, Price -10.9%, FX -1.5% Sales 1,753 2,174 EBITDA -59% yoy Gross profit from sales 326 646 Result defined by lower ASP & volumes, continued high energy costs Gross margin
Slide 7: Balance Sheet Composition
Balance Sheet Composition Resilient Financials with €4.6bn in Equity and €1.3bn in Liquidity Balance sheet (%) Characteristics 6/30/23 Assets Liabilities Cash & Securities: High level of liquidity at €1.3bn €9.4bn €8.7bn €9.4bn €8.7bn Net Working Capital: Essentially unchanged at €1.7bn 44% 49%
Slide 8: SILICONES: Weak Demand and Ongoing Customer Destocking
SILICONES Weak Demand and Ongoing Customer Destocking Sales (€m) Highlights Q2 -25% 936 890 Weak demand and ongoing customer destocking across all 706 760 699 regions Pricing pressure on Standards remains high, Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Specialty volumes below prior year EBITDA (€m
Slide 9: POLYMERS: Defending Margins in a Weak Demand Environment
POLYMERS Defending Margins in a Weak Demand Environment Sales (€m) Highlights Q2 -25% 553 Sales driven by seasonally higher volumes qoq, lower ASP 504 421 428 417 General weak market demand particularly in Europe Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 EBITDA margin higher yoy, mainly benefitt
Slide 10: BIOSOLUTIONS: Results Held Back by Upfront Costs
BIOSOLUTIONS Results Held Back by Upfront Costs Sales (€m) Highlights Q2 +8% 84 89 91 Strong BioPharma sales growth yoy 81 77 Weaker demand for some established products, as with chemicals Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 EBITDA burdened by upfront costs related to the German EBITDA (€m
Slide 11: POLYSILICON: Strong Performance in Q2, Price Pressure Increasing
POLYSILICON Strong Performance in Q2, Volumes Firm but Price Pressure Increasing Sales (€m) Highlights Q2 -10% 568 619 574 Semi volumes and prices resilient, Solar ASP lower 441 513 EBITDA qoq higher primarily on higher volumes, lower factor costs Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Solar
Slide 12: Net Financial Position
Net Financial Position Low Net Financial Debt of €270m following Dividend Payment & Acquisition Net Financial Position Bridge per 6/30/2023 (€m) 352 409 -401 -596 -4 -30 -270 Net financial asset Cash flow Cash flow from Dividend Lease Exchange-rate Net financial asset as of from operating long-term
Slide 13: Q2 2023 – Q&A Session
Q2 2023 – Q&A Session Q2 2023 – Conference Call Note July 27, 2023 12
Slide 14: Guidance FY 2023
Appendix Guidance FY 2023 In €m FY 2022 Outlook 2023 Sales 8,209 €6.5 – 6.8bn (Previously €7.0 – 7.5bn) EBITDA 2,081 €0.8 – 1.0bn (Previously €1.1 – 1.4bn) EBITDA margin (%) 25.4 Substantially lower than last year Net cash flow 439 Positive, substantially lower than last year CapEx 547 Around €650m
Slide 15: WACKER Q2 2023 Results
Appendix WACKER Q2 2023 Results In €m Q2 2023 Q2 2022 % YoY Sales 1,753 2,174 -19% EBITDA reported 256 626 -59% EBITDA-Margin 14.6% 28.8% EBIT 153 529 -71% EBIT-Margin 8.7% 24.3% Net income for the period 119 391 -70% EPS 2.38 7.67 -69% CapEx 145 100 46% Net Cash Flow -99 96 n.a. Net Debt Position 2
Slide 16: Q2 2023 Results – Breakdown by Business
Appendix Q2 2023 Results – Breakdown by Business Sales EBITDA EBITDA Margin (%) In €m / % Q2/23 Q2/22 % YoY Q1/23 % QoQ Q2/23 Q2/22 % YoY Q1/23 % QoQ Q2/23 Q2/22 Q1/23 Chemicals 1,115 1,490 -25% 1,188 -6% 128 368 -65% 167 -23% 11.4 24.7 14.0 SILICONES 699 936 -25% 760 -8% 52 277 -81% 96 -46% 7.4 29.
Slide 17: 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 7.9 7-10 Spain 4.7 2.6 3.8 7.5 7-10 Europe other 13.0 13.0 19.9 29.6 36-40 Europe total 21.7 21.2 29.0 45.0 50-60 USA 13.3 19.2 25 18.6 25-30 Japan 7.5 8.2 7.5 6.5 6-8 China 30.1 48.2 5
Slide 18: 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 19: WACKER: Issuer, Contact and Additional Information
WACKER: Issuer, Contact and Additional Information Issuer and Contact Financial Calendar INVESTOR RELATIONS CONTACTS 10/26/23 Q3 2023 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