Wacker Chemie Ag · XETR:WCH
Wacker Chemie — FY2022 Earnings Presentation
25 slides from Wacker Chemie's earnings presentation, Mar 14, 2023
Slide 1: Annual Press Conference for 2022
March 14, 2023 ANNUAL PRESS CONFERENCE FOR 2022 Wacker Chemie AG Dr. Christian Hartel President & CEO Bilanzpressekonferenz 2020 16. März 2021 0
Slide 2: We have an attractive product portfolio
WE HAVE AN ATTRACTIVE PRODUCT SUSTAINABLE CONSTRUCTION PORTFOLIO BIOPHARMACEUTICALS RENEWABLE ENERGY WHOLESOME NUTRITION ELECTROMOBILITY SEMICONDUCTORS Bilanzpressekonferenz 2020 16. März 2021 1
Slide 3: We are well-placed globally
Europe The Americas WE ARE WELL- PLACED +19% +44% GLOBALLY 896 1,287 2,371 2,830 € million 2021 2022 2021 2022 Asia Other +40% +31% 3,694 304 398 2,637 Bilanzpressekonferenz 2020 2021 2022 2021 2022 2 16. März 2021
Slide 4: We have further enhanced our operational excellence
Cost savings Goals WE HAVE FURTHER ENHANCED OUR OPERATIONAL Strengthening our EXCELLENCE >200 customer focus by enhancing our Savings in 2022 of regional presence ~160 over €200 million Making WACKER € million leaner, faster and more flexible >50 Achieving substantial savings in personnel and non-pe
Slide 5: Burghausen
BURGHAUSEN Potting of electronics with liquid silicone rubber Bilanzpressekonferenz 2020 16. März 2021 4
Slide 6: Nanjing
NANJING VAE dispersions production plant Bilanzpressekonferenz 2020 16. März 2021 5
Slide 7: Munich
MUNICH Biotechnology Research Center at Corporate R&D Bilanzpressekonferenz 2020 16. März 2021 6
Slide 8: Number of employees
Employees NUMBER OF EMPLOYEES up by 9 percent in 2022 +9 % As of December 31 15,725 14,400 Employees outside 5,300 4,400 of Germany Employees 10,000 10,425 in Germany 2021 2022 Bilanzpressekonferenz 2020 16. März 2021 7
Slide 9: Global economic growth slowed significantly in 2022
GLOBAL ECONOMIC GROWTH SLOWED SIGNIFICANTLY IN 2022 Global real-GDP trend by region – year-over-year Worldwide Europe Asia China India Japan USA change (%) 7.0 4.2 3.4 3.3 3.0 1.6 2.0 Bilanzpressekonferenz 2020 16. März 2021 8
Slide 10: Group sales up by 32 percent in 2022 due to higher selling prices
GROUP SALES UP BY 32 PERCENT IN 2022 DUE TO HIGHER SELLING PRICES Group sales +32 % (€ million) 8,209 6,208 2021 2022 Bilanzpressekonferenz 2020 16. März 2021 9
Slide 11: Earnings grow significantly despite sharp rise in energy costs
EARNINGS GROW SIGNIFICANTLY DESPITE SHARP RISE IN ENERGY COSTS € million EBITDA EBIT Net income for the year +35% +48% +55% 2,081 1,539 1,679 1,134 1,282 828 2021 2022 2021 2022 2021 2022 Bilanzpressekonferenz 2020 16. März 2021 10
Slide 12: Chemical divisions post significant growth in sales and earnings
Sales EBITDA CHEMICAL DIVISIONS POST SIGNIFICANT +29 % +45 % GROWTH 5,499 1,165 in sales and earnings WACKER 4,273 289 (€ million) POLYMERS 1,996 806 WACKER SILICONES 1,674 +19% 253 +14% 876 3,453 2,599 553 +33% +59% 2021 2022 2021 2022 Bilanzpressekonferenz 2020 16. März 2021 11
Slide 13: WACKER Biosolutions
Sales EBITDA WACKER BIOSOLUTIONS increases sales. EBITDA below +12 % -56 % prior year, due in part to upfront costs for capacity expansion € million 331 39 296 17 2021 2022 2021 2022 Bilanzpressekonferenz 2020 16. März 2021 12
Slide 14: WACKER Polysilicon
Sales EBITDA WACKER POLYSILICON reports strong sales and +50 % +26 % EBITDA growth € million 2,287 1,530 657 826 2021 2022 2021 2022 Bilanzpressekonferenz 2020 16. März 2021 13
Slide 15: Capital expenditures rise sharply, net cash flow clearly positive
CAPITAL EXPENDITURES RISE SHARPLY, NET CASH FLOW CLEARLY POSITIVE, BUT BELOW PRIOR-YEAR LEVEL € million Capital expenditures Net cash flow Net financial assets +59% -42% -25% 761 547 439 547 409 344 2021 2022 2021 2022 2021 2022 Bilanzpressekonferenz 2020 16. März 2021 14
Slide 16: Financial position
Balance sheet total FINANCIAL POSITION High liquidity, equity ratio up, € 9.4 billion pension provisions lower Liquidity of €1.96 billion Balance sheet total as of Dec. 31, 2022 Fixed assets Unused lines of credit of 44.4% Equity around €600 million 53.5% Provisions for pensions Inventories €1.04 bi
Slide 17: Economic experts anticipate slight global growth for 2023
ECONOMIC EXPERTS ANTICIPATE SLIGHT GLOBAL GROWTH FOR 2023 Worldwide GDP trend by region – actual year- Worldwide Europe Asia China India Japan USA over-year change in % 7.2 4.6 5.2 2.9 0.5 1.8 1.4 Bilanzpressekonferenz 2020 16. März 2021 16
Slide 18: Group sales projected at €7–7.5 billion, EBITDA at €1.1–1.4 billion
GROUP SALES PROJECTED AT €7–7.5 BILLION, WITH EBITDA EXPECTED AT €1.1–1.4 BILLION Outlook for 2023 Reported for 2022 Outlook for 2023 Sales (€ million) 8,209 €7,000–7,500 million EBITDA (€ million) 2,081 €1,100–1,400 million CapEx (€ million) 547 Around €650 million Net cash flow (€ million) 439 Hig
Slide 19: WACKER Silicones
Strategic focus WACKER SILICONES targets sales of between €3.1–3.3 billion in 2023 and Adding value: strengthening expects an EBITDA margin the proportion of high-margin of about 15 percent specialties Innovation: tapping into new WACKER’s specialty silicones are used for multicomponent parts in veh
Slide 20: WACKER Polymers
Strategic focus WACKER POLYMERS expects sales of around Transformation: promoting the €1.8 billion in 2023 and trend toward value-added a slightly higher EBITDA construction materials margin than last year Substitution: replacing Building insulation containing WACKER’s conventional products in dispe
Slide 21: WACKER Biosolutions
Strategic focus WACKER BIOSOLUTIONS expects low double-digit sales growth in 2023 and substantially Market share: spurring growth higher EBITDA year over year of biotechnology business Fermenter for producing Innovation: driving pharmaceutical proteins commercialization of newly developed products C
Slide 22: WACKER Polysilicon
Strategic focus WACKER POLYSILICON expects sales of €1.6–1.8 billion Market share: increasing the and EBITDA of €300–500 million volumes we provide to semiconductor-sector customers Hyperpure polysilicon: the starting material for semiconductors and solar cells Costs: further reducing energy and raw
Slide 23: Our goals until 2030
OUR GOALS UNTIL 2030 Group sales: > €10 billion EBITDA margin: Chemical divisions > 20 percent WACKER BIOSOLUTIONS > 25 percent WACKER POLYSILICON > 30 percent Annual capital expenditures until 2026: Chemical divisions > €400 million WACKER BIOSOLUTIONS > €80 million WACKER POLYSILICON ~ €100 millio
Slide 24: WACKER wants to halve its carbon emissions by 2030
Improve our Enable customers to WACKER WANTS own products establish future TO HALVE and processes technologies ITS CARBON EMISSIONS Value Up BY 2030 Enabling products / product solutions Sustainability has two Footprint Down dimensions for WACKER Supporting products / product solutions Collaboration
Slide 25: Annual Press Conference for 2022
March 14, 2023 ANNUAL PRESS CONFERENCE FOR 2022 Wacker Chemie AG Dr. Christian Hartel President & CEO Bilanzpressekonferenz 2020 16. März 2021 24