Financial document - (annual report 25)

Sales by region

Sales by business division

WACKER at a glance 2025

Sales

€5.5 billion

2024: €5.7 billion

EBITDA

€427 million

2024: €743 million

Employees

16,467

2024: 16,637

Capital expenditures

€466 million

2024: €709 million

Research and development expenses

€215 million

2024: €204 million

Active patents

3,400

2024: 3,100

Absolute greenhouse gas emissions (Scopes 1 and 2)

3,626

-30%

-43%

-50%

2,054

1,813

Base year 2020 = 100%

Target in 2030 = -50%

in million metric tons CO₂e

2020 2024 2025 2030

2,529

Share of renewable sources in our total energy consumption

34%

2024: 34%

1 EBITDA is EBIT before depreciation and amortization.

2 Investments in joint ventures and associates and other investment income reclassified to the financial result (€329.7 million in expenses; previous year €19.2 million in income); EBITDA and EBIT adjusted accordingly. Details can be found under "Changes in accounting policies."

3 Margins are calculated based on sales.

4 EBIT is the result from continuing operations for the period before interest and other financial result, and income taxes.

5 Securities, fixed-term deposits, cash and cash equivalents.

6 Sum of cash and cash equivalents, noncurrent and current securities, and noncurrent and current financial liabilities.

7 Intangible assets, property, plant and equipment, investment property, excluding right-of-use assets.

8 Due to a change in accounting policy, carbon credits will be reported under intangible assets in the future (amounting to €11.5 million; previous year €43.4 million) and will thus be allocated to capital expenditures. They used to be recognized in inventories. Details can be found under "Changes in accounting policies."

9 Sum of cash flow from operating activities and cash flow from long-term investing activities (before securities).

Discover our interactive key-figure comparisons online

1. For our shareholders 3. Consolidated

financial statements

2

management report

231

Reconciliation of other Group equity items

4. Further information

328

340

Declaration on corporate management

Multiyear overview

‌For our shareholders‌

6 Letter from the CEO

10 Our Executive Board

11 Report of the Supervisory Board

18 WACKER on the capital market

22 Highlights from 2025

WACKER Annual Report 2025

WACKER Annual Report 2025

Letter from the CEO

The chemical industry is under pressure - worldwide, but in Europe in particular. Contrary to expectation, demand in many customer sectors remained weak in 2025. A key reason here was tremendous market uncertainty. Fueled by trade conflicts and geopolitical crises, this uncertainty led to subdued ordering behavior and the postponement of investments. As a result, we produced and sold less overall in 2025.

At the same time, we have to realize that we are not just dealing with an economic dip, but with fundamental changes. New competitors are entering the market and overcapacities for many standard chemical products are typical of the current situation. This is exacerbated by structural disadvantages in Europe, such as energy prices that are still far too high and are internationally uncompetitive, and excessive regulation. This puts us at a clear disadvantage compared to our competitors in the USA and Asia.

In view of this complex situation, we, like many other chemical companies, had to adjust downwards our original 2025 targets in the course of the year. With annual sales of €5.5 billion and EBITDA of around €530 million before special effects, we met both the adjusted forecast and market expectations. Nonetheless, even if we ultimately closed 2025 in line with expectations, one thing is clear: we cannot be satisfied with that.

6

Dr. Christian Hartel President & CEO of Wacker Chemie AG

We want to to save more than

a year

This is particularly true with regard to our net result for the year. Due to a series of valuation adjustments, this result was clearly negative at more than €-800 million in 2025. Owing to the negative net result and the current circumstances, the Supervisory and Executive Boards will not propose a dividend for 2025.

To get WACKER back on track for success, we launched PACE, the largest cost-cutting project in WACKER's history, last year, with the clear aim of significantly reducing costs and strengthening our competitiveness to lasting effect.

In particular, we want to use PACE to reduce our production-related and administrative costs by over €300 million per year.

PACE will also involve a reduction in positions. More than 1,500 jobs will be reduced worldwide, most of which will be at our German sites. There is no way around the fact that we need to change if we are to remain successful on the market.

Change brings uncertainty. But above all, it offers opportunities too. The opportunity to firmly establish WACKER as one of the world's leading chemical companies and put it back on track for profitable growth.

We have the potential for this. No question about it. Because we have answers to the big questions facing humanity. We provide solutions for renewable energy, electromobility, smart construction, healthcare, medical technology and nutrition.

What is more, our products help our customers to meet their sustainability targets. They make a demonstrable contribution to reducing CO2and conserving resources.

In order to serve these megatrends, we continued to make targeted investments in 2025. Because saving alone is not enough. We must also invest in the future, drive innovation and create the basis for new, profitable growth. One example of this is our new production line for semiconductor-grade polysilicon, which went on stream in Burghausen in 2025. The new plant not only expands our capacities, but also further increases the quality of the material. This strengthens our position as the global market and quality leader for hyperpure polysilicon -which is used in semiconductors. Polysilicon made by WACKER can already be found in every other computer chip. This market, moreover, is growing steadily.

We also see growth opportunities in the field of biotechnology. Our focus is on biotechnological solutions for the pharmaceutical and food sectors. By opening our WACKER Biotechnology Center in Munich last year, we are able to expand our research capacities and reinforce our innovative strength.

At the same time, we are accelerating our growth in the chemical divisions. For example, we continued to drive forward our specialties strategy with the commissioning of two new production facilities for silicones in Tsukuba,

Japan, and Jincheon, South Korea, in 2025. In addition, we are building a new production site in Karlovy Vary in the Czech Republic. This site will start producing room-temperature-curing high-performance silicones in 2026.

Such grades play a particularly important role in electromobility and renewable energy applications. We will open the site in mid-2026.

In order to develop our potential even better, we formulated three overarching strategic priorities in spring 2025 that show us the way forward.

First, we elevate our business model and value proposition. In our chemical divisions, our focus is on specialties. In the Polysilicon division, we are concentrating on the semiconductor market. In our life sciences division, Biosolutions, the focus is on biotech solutions.

Second, we unleash the potential of our structure and processes by working on becoming faster and more efficient. In doing so, we are leveraging the opportunities that digitalization, automation and AI offer us.

Third, we excel with our people and culture. Occupational safety forms the basis for everything we do. At the same time, we are working on becoming even more diverse and further honing our focus on performance.

Our strategy and the measures we have taken will take effect and put WACKER back on the road to success. In its more than 100-year history, WACKER has repeatedly proven that it can successfully adapt to new circumstances. That is why I am confident that we will also successfully shape the transformation that lies ahead of us. Because we not only have the right products and solutions

for the future, but above all the right team to master the challenges. On behalf of the entire Executive Board, I would therefore like to thank our employees worldwide for their dedication and commitment in these turbulent times.

Circumstances will remain challenging in 2026. It is therefore all the more important that we now continue to consistently pursue the path we have taken. After all, the market waits for no one. Speed is increasingly becoming a key differentiating factor. That's why all our measures involve maximum speed.

2026 will be a year of implementation - embodied by spirit, speed and confidence.

On behalf of the entire Executive Board team, I would like to thank you for your trust in WACKER. •

Dr. Christian Hartel

President & CEO of Wacker Chemie AG

‌Our Executive Board

Dr. Christian Hartel

President & CEO

Angela Wörl

Dr. Tobias Ohler Dr. Christian Kirsten

‌Dr. Peter-Alexander Wacker Chair of the Supervisory Board of Wacker Chemie AG

The global environment once again presented Wacker Chemie AG with numerous challenges in 2025, with underlying conditions dominated by ongoing geopolitical conflicts, uncertainty surrounding trade policy and weak demand in key customer sectors. The company's response to these complex and challenging issues has been decisive.

One of these responses came in the form of PACE, an extensive efficiency program that was launched last year. PACE will bear fruit over the coming fiscal years and make a key contribution to strengthening WACKER's competitiveness to lasting effect.

The company also refined its strategic focus by setting clear priorities going forward. The emphasis on specialty products in the chemical divisions, hyperpure semiconductor-grade polysilicon and innovative biotechnology solutions allows WACKER to remain well positioned for the future.

This is why it continued to invest systematically in this strategic direction in 2025, despite challenging economic times. One notable example is the commissioning of a new production line for hyperpure semiconductor-grade polysilicon at the Burghausen site. At over €300 million, the new production facility represents the Group's largest single investment in the last ten years. The opening of the WACKER Biotechnology Center in Munich also created new research capacities for the manufacturing of biopharmaceuticals and ingredients for foods and food supplements. These examples showcase just how systematically the company is investing in attractive growth markets to lay the foundation for profitable growth in the years to come.

Even though the economic environment is more than likely to remain challenging in the current 2026 fiscal year, we are convinced that the company is on track to generate significant added value for all its stakeholders.

Continuous dialogue with the Executive Board

At WACKER, sound corporate governance and control are built on a relationship of trust between the Executive Board and Supervisory Board as they work closely

together in the company's interest. In 2025, the Supervisory Board performed - with great diligence - the duties incumbent upon it under law, the Articles of Association and its own Rules of Procedure. The Supervisory Board was involved at an early stage in every decision of fundamental significance for the company.

In both written and oral reports, the Executive Board regularly provided the Supervisory Board with timely and comprehensive information on corporate planning, strategic development, business operations, and the current state of Wacker Chemie AG and the Group, including the risk situation, risk management, and compliance and sustainability issues. Beyond scheduled Supervisory Board meetings, the chair of the Supervisory Board remained in close contact with the Executive Board, especially with the CEO, conferring on issues of strategy, business development, risk exposure, risk management and compliance, and was kept informed of current trends, the business situation, and key business transactions. Any deviations from business plans and targets were explained to the Supervisory Board in detail.

Wherever required by statutory provisions or the Articles of Association, the Supervisory Board voted on the reports and proposals of the Executive Board after detailed examination and discussion. There was no need for additional monitoring measures, such as the inspection of corporate documents or the appointment of experts.

The Supervisory Board held four meetings in 2025, two in the first half of the year and two in the second half. Specific agenda items were discussed without the Executive Board being present. All Supervisory Board meetings were in person. Between meetings, the Executive Board informed the Supervisory Board in detail by means

of written reports about all projects and plans of particular importance to the Group. At its full meetings and in its committees, the Supervisory Board discussed in detail business transactions of importance to the company and referred to the reports submitted by the Executive Board. The full meetings were prepared by shareholder and employee representatives in their own separate sessions.

The Supervisory Board's main areas of deliberation

The development of sales, earnings and employment at Wacker Chemie AG and the Group, together with strategic development opportunities, were the subject of regular consultations in the full meetings of the Supervisory Board. Discussions centered

in particular around the difficult economic environment and the need to safeguard earnings and liquidity, as well as the risk situation and risk management, with a focus on the following issues:

• Weak global demand coupled with fierce competition

• Adjusting and enhancing the corporate strategy in a challenging market environment

• Macroeconomic and geopolitical uncertainty and the resulting opportunities and risks for our business

• PACE cost-saving project

• Investment planning

• Innovation

• Financing activities

The Supervisory Board discussed the WACKER Group's plans for 2026 at its meeting of December 4, 2025. On that occasion, the Supervisory Board also dealt with medium-term corporate plans for 2026-2030. In addition, it discussed and approved the capital-expenditure budget for 2026.

Work in the committees

The Supervisory Board is assisted in its work by the committees it has constituted. WACKER's Supervisory Board has created three committees - an Audit Committee, an Executive Committee, and a Mediation Committee (the latter in accordance with Section 27 (3) of the German Co-Determination Act (MitbestG)). The tasks and the members of these committees are detailed in the

>declaration on corporate management.

The Audit Committee met four times in person last year. In the presence of the auditors, it discussed the audit of the annual financial statements of Wacker Chemie AG and the Group for 2024 and the consolidated interim financial statements for

the first half-year. It also examined the Group's quarterly financial figures as well as issues relating to risk management, the accounting process, the internal control

systems, compliance, auditing, and the preparatory review of sustainability reporting. It monitored the audit, especially regarding quality, as well as the independence of the auditors and the additional services they performed. The Audit Committee also submitted a recommendation to the Supervisory Board for the latter's proposal

to the 2025 Annual Shareholders' Meeting about appointing an auditor for any reviews of interim financial reports for 2026 in the period preceding the ordinary Annual Shareholders' Meeting for the 2026 fiscal year. The Audit Committee then awarded the auditing contract for 2025 as per the resolution of the ordinary Annual Shareholders' Meeting for the 2025 fiscal year.

The Executive Committee met twice in person in 2025. The committee members discussed recommendations to the Supervisory Board regarding compensation issues and the reappointment of Dr. Tobias Ohler and Dr. Christian Kirsten.

The Mediation Committee did not need to be convened in the reporting year. The Supervisory Board was regularly informed about the committees' work.

Initial and Advanced Training

The members of the Supervisory Board are called upon to take part in training courses at regular intervals and are responsible for meeting this obligation themselves.

The company supports the members in their educational endeavors, in particular by granting them generous expense allowances, which can and should be used for further training, among other things. When they take office, new Supervisory Board members receive an information package about their rights and obligations; it also includes information sheets on insider-trading bans and on personal transactions by managers. Where necessary, they are also informed about significant changes in legislation and court rulings affecting their work, or are able to take part in internal information events.

Personalized disclosure of attendance at meetings

Last year, two members were excused from one Supervisory Board meeting each and one member was excused from two meetings. Otherwise, all members of the Supervisory Board attended all of its meetings. Committee meetings were always

attended by all members. Members' attendance at meetings of the Supervisory Board and at their respective committee meetings is disclosed in personalized form in the following table:

Full Supervisory Board

Attendance at meetings during period of office

Dr. Peter-Alexander Wacker 4/4

Manfred Köppl 4/4

Prof. Andreas H. Biagosch 4/4

Dr. Gregor Biebl 4/4

Matthias Biebl 4/4

Prof. Patrick Cramer 2/4

Stefan Entholzner 4/4

Ingrid Heindl 3/4

Barbara Kraller 4/4

Dr. Benedikt Postberg 4/4

Harald Sikorski 4/4

Reinhard Spateneder 4/4

Ann-Sophie Wacker 3/4

Prof. Anna Weber 4/4

Dr. Susanne Weiss 4/4

Günter Zellner 4/4

Executive Committee

Dr. Peter-Alexander Wacker 2/2

Manfred Köppl 2/2

Matthias Biebl 2/2

Audit Committee

Dr. Peter-Alexander Wacker 4/4

Manfred Köppl 4/4

Prof. Anna Weber 4/4

Mediation Committee

Dr. Peter-Alexander Wacker 0/0

Manfred Köppl 0/0

Prof. Andreas Biagosch 0/0

Barbara Kraller 0/0

Corporate Governance

Last year, the Supervisory Board looked closely at corporate governance standards. At its meeting of December 4, 2025, the Supervisory Board, as scheduled, dealt with application of the German Corporate Governance Code and adopted the annual declaration of conformity that must be submitted jointly by the Executive and

Supervisory Boards in accordance with Section 161 of the German Stock Corporation Act (AktG). This declaration is available on the company's website and is also included in the >declaration on corporate management.

Further information on corporate governance at WACKER can likewise be found in the

>declaration on corporate management.

At its December meeting, the Supervisory Board also conducted a self-assessment and found that it works efficiently - for example, due to the regular preliminary discussions regarding the Supervisory Board meetings, the comprehensive reports provided by the Executive Board and the detailed documents received well in advance of the meetings. Further information on the Supervisory Board's regular self-assessments can be found in the >declaration on corporate management.

Audit of the annual financial statements of Wacker Chemie AG and the WACKER Group

PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Munich, audited the annual financial statements of Wacker Chemie AG, the consolidated financial statements and the combined management report - including the Group Sustainability Report - for 2025. PricewaterhouseCoopers GmbH

Wirtschaftsprüfungsgesellschaft has audited Wacker Chemie AG and the WACKER Group since 2024. The persons responsible for signing the audit are Dietmar Eglauer and Anita Botzenhardt.

The Supervisory Board's Audit Committee had awarded the auditing contract in accordance with the resolution of the Annual Shareholders' Meeting of May 7, 2025. The auditors conducted their audit in accordance with Section 317 of the German Commercial Code (HGB) and the EU Audit Regulation, and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW). They issued unqualified audit opinions.

The auditors also carried out a review with limited assurance of the Group Sustainability Report. Accordingly, no issues were identified that would indicate that the statement did not satisfy the statutory requirements in all material respects.

The financial-statement documents (including the auditors' reports, the combined management report - with the Group Sustainability Report - and the Executive Board's proposal for the distribution of profits) were submitted to all the Supervisory Board members in good time.

At its meeting of February 24, 2026, the Audit Committee examined and discussed in detail the combined management report for Wacker Chemie AG and the Group, including the Group Sustainability Report, as well as the auditors' reports. The full Supervisory Board, at its meeting of March 4, 2026, closely examined and discussed

the relevant annual accounting documents - including the Group Sustainability Report - with knowledge and in consideration of both the report of the Audit Committee

and the auditors' reports. The auditors, Dietmar Eglauer and Anita Botzenhardt, took part in the deliberations at both meetings. In addition, Hendrik Fink attended these meetings as the auditor responsible for the Group Sustainability Report.

The auditors reported on the main results of the audits - in particular, the key audit matters described in the auditors' reports and the outcome of the review of the Group Sustainability Report - and were available to answer questions and provide supplementary information.

After concluding its own examination, the Supervisory Board has no objections to raise to the annual financial statements of Wacker Chemie AG, the consolidated financial statements, the combined management report for Wacker Chemie AG and the

Group - including the Group Sustainability Report - or the auditors' reports.

The Supervisory Board therefore approves the annual financial statements of Wacker Chemie AG and the consolidated financial statements as of December 31, 2025 as prepared by the Executive Board. The annual financial statements of Wacker Chemie AG are hereby adopted. The Supervisory Board concurs with the Executive Board's proposal for the appropriation of net retained profit. In accordance with Section 162 (3) sentence 2 of the German Stock Corporation Act, the compensation report for 2025 was examined by the auditors to determine whether the disclosures required by law pursuant to Section 162 (1) and (2) of the German Stock Corporation Act were made.

Changes in the composition of the Supervisory and Executive Boards There were no changes to the composition of Wacker Chemie AG's Executive and Supervisory Boards in 2025.

The Supervisory Board would like to thank every single WACKER employee for their commitment in 2025 and to extend special thanks to the Executive Board's members and the employee councils for their dedication and leadership in another very challenging year. •

Munich, March 4, 2026

The Supervisory Board

Dr. Peter-Alexander Wacker

Chair of the Supervisory Board of Wacker Chemie AG

‌WACKER on the capital market in 2025

In 2025, the global economy was dominated by ongoing geopolitical tension and trade conflicts. Nevertheless, all major stock market indices performed well, with some recording double-digit percentage gains since the end of 2024.

The DAX40, Germany's benchmark index, recorded its best year since 2019, with a year-over-year increase of around 23 percent. German Mid Caps, too, performed positively overall. The MDAX rose by around 20 percent over the course of the year compared to the end of 2024.

WACKER share performance in 2025 (indexed to 100)1

Wacker Chemie AG's shares saw a largely stable performance in 2025. At the start of 2025, WACKER stock stood at €70.04 (year-end closing price on

December 30, 2024). After a weak start to the year, the stock declined by about 13 percent and it traded at just under €61 in mid-January. The share price

then bounced back, with very high trading volumes in some cases and rose to its year high of €87.18 (closing price on March 18, 2025). With the increasing tariff-related uncertainty, the unclear market-access restrictions for solar-grade polysilicon in the US and the downward trend for incoming orders in the chemical industry, the share price subsequently fell to its year low of €59.50 on April 9, 2025. Over the course of the year, the share price fluctuated largely in a range between €60 and €70. Despite the revision of the full-year 2025 guidance on July 18, 2025, the share price trend remained stable. WACKER stock closed trading at the end of the year at €69.35 on December 30, 2025. This was down 1 percent compared to the end of the previous year and corresponded to a market capitalization of around €3.45 billion.

The performance of WACKER's share price reflected persistently challenging market conditions.

Proposal on the appropriation of net retained profit

In accordance with regulations under commercial law, Wacker Chemie AG posts a net retained profit of €814.8 million for 2025. The Executive and Supervisory Boards will propose to the Annual Shareholders' Meeting that no dividend be distributed, since a negative result was posted for 2025.

1 Subject to being approved by the Annual Shareholders' meeting on May 6, 2026

2 In relation to the weighted average share price of the previous year

3 In relation to net income after taxes (attributable to WACKER's shareholders) (million)

Market capitalization (as of December 31, 2025)

WACKER's year-end market capitalization based on shares outstanding was

€3.45 billion (December 31, 2024: €3.48 billion).

Trading volume

In the reporting year, the average daily trading volume for WACKER stock on Xetra, Germany's regional exchanges, Tradegate and Quotrix was approximately 176,868 shares, which was about 35 percent higher than the prior-year figure of

131,262 shares. Average daily turnover for the shares, however, was €11.97 million, down slightly year over year (2024: €12.41 million).

1 Trading platforms (Xetra, Germany's regional exchanges, Tradegate and Quotrix)

2 Dividend yield based on the average share price (weighted by volume) of €67.68 in 2025

Shareholder structure

Wacker Chemie AG's largest shareholder remains Dr. Alexander Wacker Familiengesellschaft mbH, Munich. It held over 50 percent of the voting shares in Wacker Chemie AG in 2025, as in the previous year. Blue Elephant Holding GmbH (Bad Wiessee, Germany) had no voting-share changes to report in 2025 either, with its holding in Wacker Chemie AG remaining at over 10 percent.

Shareholder structure in %

Useful information on WACKER stock

ISIN DE000WCH8881

WKN WCH888

Frankfurt Stock Exchange WCH

Bloomberg CHM/WCH.GR

Reuters CHE/WCHG.DE

Initial public offering April 10, 2006

Capital stock €260,763,000

Regulated market (Prime Standard),

Trading segment Frankfurt/Main Stock Exchange

Category of shares Bearer shares

Number of shares (Dec. 31, 2025) 52,152,600

Number of shares outstanding 49,677,983

Paying agent Deutsche Bank, Frankfurt/Main

WACKER communicates closely with capital markets

Key elements of corporate strategy are sustainability and a focus on specialty chemicals. These priorities are reinforced through continuous and open communication with institutional investors, private investors and analysts.

At the end of 2025, 19 analysts were covering WACKER (2024: 18 analysts). The consensus price target of analysts for WACKER stock declined during the year. At the beginning of the year, the average price target for WACKER stock was

€113.72 (18 estimates, December 2024). At the end of 2025, the average price target was €68.21 (19 estimates), about 40 percent lower than at the beginning of the year.

Banks and investment firms covering and rating WACKER

• Baader Europe / Alphavalue

• Bank of America

• Barclays

• Berenberg

• Citigroup

• Deutsche Bank

• DZ Bank

• Exane BNP Paribas

• HSBC

• Jefferies International

• J.P. Morgan

• Kepler Chevreux

• Landesbank Baden-Württemberg

• Metzler Bank

• MWB Research

• Morgan Stanley

• Oddo BHF

• UBS AG

• Warburg Research

On our website, we regularly report consensus analyst expectations for the current year. Moreover, our website offers extensive information on WACKER stock. In addition to the Annual Report, other financial reports, a Fact Book, presentations and publications (viewable online or downloadable), our website lists all our key financial-calendar dates and contact persons.

Discover our financial calendar online

‌Highlights from 2025

1. Strengthening specialties business in Asia

2. Top grade for climate protection

3. Moving toward the production of green silicon

   January WACKER's new production plants for specialty silicones went on stream in Tsukuba, Japan, and in Jincheon, South Korea. This makes it possible to meet even better the growing demand for specialty silicones for the automotive sector, especially in relation to heat-sink compounds for electromobility applications, and for the construction industry. The new plants further strengthen WACKER's position in the Japanese and other Asian markets.

   February For the second year in a row, WACKER achieved a top score of A in the Climate category of the CDP's annual sustainability ratings. CDP is a non-profit organization that evaluates the transparency and performance of organizations in the categories of Climate, Water and Forests.

   March WACKER's Holla site in Norway began replacing fossil coal with biocarbon as part of its silicon production process. The process of reducing quartz to metallurgical-grade silicon produces CO2emissions. But by using biocarbon, WACKER avoids fossil CO2emissions, thereby moving a considerable step closer to being able to produce "green" silicon.

4. Sustainable solutions at the ECS

   March WACKER presented numerous product innovations at the European Coatings Show (ECS) in Nuremberg. Over

   300 square meters, the company demonstrated its expertise as a leading manufacturer of specialty chemicals. Areas of focus included alpha-silane crosslinking binders for sealants and (assembly) adhesives as well as sustainable solutions for the building-materials sector.

   WACKER Annual Report 2025 Highlights from 2025 22

   
   
   

5. Global safety initiative

   March Safety is not an option, but a pre-condition for everything we do at WACKER and the common denominator that unites us all. Rules of conduct and principles that apply across the Group underline this requirement as part of a "for our safety" initiative and further strengthen our corporate safety culture.

6. Carbon footprint for product range

7. In China for China

8. Alexander Wacker Innovation Award

   May WACKER provides customers with comparable data on the sustainability of its products. This information is based on "cradle-to-gate" production and emission data for everything WACKER produces. Dedicated software uses this data to calculate the specific and comparable carbon footprint for each product. Emissions are calculated with high data quality on the basis of actual material consumption rates.

   May WACKER continues to expand its position in the world's largest chemical market: additional production lines for silicone fluids, silicone emulsions and elastomer gels went on stream at its Zhangjiagang site. What is more, to strengthen its specialty business, WACKER opened a new technology center in Jining in partnership with SICO Performance Material.

   May Every year since 2006, WACKER has honored excellent achievements in Research and Development with the Alexander Wacker Innovation Award. In 2025, this internal award was presented in two categories for the first time. The "Silicon eye," which uses infrared cameras and artificial intelligence to produce a live image from a silicon furnace for the first time, was honored in the Scientific Excellence category. The use of a digital

   twin to depict the virtual commissioning of the new semiconductor-grade silicon cleaning line was honored in the Business Success category.

   WACKER Annual Report 2025 Highlights from 2025 23

   
   
   

9. WACKER Silicone Award for Lutz Greb

1. New Biotechnology Center opened

2. Etching Line Next launched in Burghausen

3. WACKER opens its doors

   June Lutz Greb, professor at Heidelberg University's Institute of Inorganic Chemistry, was presented with the WACKER Silicone Award. Since 1987, this award has been presented

   to outstanding researchers in the field of silicone-based and silicon-containing chemistry every two years. Internationally speaking, Greb's research in the field of complex chemistry and molecular catalysis is groundbreaking.

   July WACKER has combined and strengthened its biotech research activities. 1,500 square meters of laboratory and pilot plant space and 700 square meters of office space have therefore been added at the Corporate R&D site in Munich. Research there focuses on manufacturing processes for biopharmaceuticals and on ingredients for food and dietary supplements.

   July WACKER commissioned a new production line for high-purity semiconductor-grade polysilicon at its Burghausen

   site, further strengthening its position as a global quality and technology leader. Ultrapure polycrystalline silicon is the purest man-made material and the key raw material for the next generation of computer chips. Worth over €300 million, the new production facility represents the Group's largest single investment in the last ten years.

   September More than 20,000 visitors took the opportunity to look behind the scenes at WACKER's two largest chemical sites in Germany: Burghausen and Nünchritz. Local residents, visitors and employees along with their families were able to gain inspiring first-hand insights into the diverse product range and operational processes of a leading chemical company.

   WACKER Annual Report 2025 Highlights from 2025 24

   
   
   

4. 50 years of WACKER in Mexico

5. High-tech at K 2025

   September Half a century ago, WACKER established its first Central America sales office in Mexico City. Today, the Mexican subsidiary is the number one for polymer binders and silicones in Mexico and the region.

   October Silicones from WACKER drive the world forward. Whether energy transition, e-mobility, digitalization or sustainability - WACKER has the right solutions for these megatrends. Visitors to WACKER's booth at K 2025, the world's largest plastics trade fair, in Düsseldorf, were able to see this for themselves.

6. Biotech for cultivated meat

7. 20 years of WACKER's Relief Fund

November WACKER launched a growth factor that enables the growth of muscle, fat and connective tissue cells in culture media - the basis for the production of sustainable, cultivated meat. "FGF-2 Food" was developed for use in the production of cultivated meat. By cultivating animal cells, produced in a controlled environment, it is a sustainable and humane alternative to conventional meat production.

December The WACKER Relief Fund was founded in 2005 in response to the devastating tsunami in Asia. A great deal of good has been done since then. This is based on numerous donations from WACKER employees, which are then matched by the company. In line with the motto "helping people to help

themselves," the fund mainly focuses on supporting educational projects, such as the construction and running of schools in regions hit by natural disasters.

WACKER Annual Report 2025 Highlights from 2025 25

‌Combined management report

27

36

41

50

58

62

67

73

79

99

106

Group business fundamentals Governance

Business report Earnings

Net assets Financial position

Further information on R&D, employees, procurement and logistics Management report of

Wacker Chemie AG

Risk management report Outlook

Sustainability Report

WACKER Annual Report 2025

‌Group business fundamentals‌

Group business fundamentals include the designated disclosures pursuant to ESRS 2.40 and ESRS 2.42 of the sustainability reporting on strategy, business model and value chain. The relevant sections include a corresponding reference in brackets below the headings.

Business model of the Group

WACKER is a global company with state-of-the-art specialty chemical products found in countless everyday items. Our portfolio includes more than 3,000 products supplied in over 100 countries ranging from tile adhesives to computer chips.

Silicon is WACKER's most important raw material

(ESRS 2.42 a, b, c)

Most of our products are based on inorganic raw materials. Silicon-based products account for about 65 percent of WACKER sales, and products primarily based on ethylene and acetic acid for 35 percent. Our main customers are in the automotive, construction, chemical, semiconductor, consumer goods, medical technology, pharmaceutical and photovoltaic sectors.

22 technical competence centers support sales and marketing activities

WACKER operates all over the world. Our sales strategy is centered around expanding our presence in growth markets. Our sales organization is supplemented not only by a network of technical competence centers, where customers learn about WACKER's product portfolio, but also by the WACKER ACADEMY, where we offer technical training programs about our products and their application fields.

27 production sites

WACKER's integrated global production system consists of 27 production sites. Ten are in Europe, nine in the Americas and

eight in Asia. The Group's key production site is Burghausen, Germany.

WACKER's production and sales sites and technical competence centers

27 Production sites

22 Technical competence centers

47 Sales sites

u5A

Adrian Allentown Ann Arbor Calvert City Charleston Chino

Michigan 0 O

Pennsylvania 0 OF Michigan A Kentucky O Tennessee O California OO

Europe

Amsterdam Netherlands O

Barcelona Spain O Bracknell United Kingdom O Budapest Hungary O

Burghausen Germany OOA

Cologne Germany O

Asia Anyang Bangkok Beijing Bengaluru Delhi Dhaka

South Korea A Thailand O China O

India OA India O

Bangladash O

Tokyo

Tsukuba (Akeno) Ulsan

Yangon Zhangjiagang

Japan O

Japan OA

South Korea O Myanmar O

China0 O

Dalton Eddyville North Canton San Diego

South America

Georgia A Iowa O Ohio OO

California0

Halle (Saale) Germany O

Istanbul Turkiye OA

Jena Germany 0 O

Kyiv Ukraine O

Krommenie Netherlands 0

Kyrksmterara/Holla Norway 0

Dubai United Arab Emirates OA Guangzhou China O Ho Chi Minh City Vietnam O Hong Kong China O

Jakarta Indonesia OA

Jincheon !3outh Korea O

Australia Melbourne

Victoria O A

Bogotâ Colombia OA Jandira (SâoPaulo) Brazil OOA Mexico City Mexico OA

LeSn ispain O

Lyon France O

Milan Italy O

Munich Germany O

Nunchritz Germany OOA Plzeñ Czech Republic O 0 Riemerling Germany O

Solna Sweden O

Stetten Germany O

Stuttgan Germany O

Warsaw Poland O

Jining China0 O A

Kolkata India OOA Kuala Lumpur Malaysia O Mumbai India OA

Muntinlupa City Philippines O Nanjing China O

Panagarh India OA

Seoul South Korea OA

Shanghai China OA

Singapore Singapore OA

Taipei Taiwan O

Production site

@ Technical competence center Sales site

Legal structure

In November 2005, WACKER became a stock corporation (AG) under German law. Headquartered in Munich, Wacker Chemie AG holds a direct or indirect stake in 51 companies belonging to the WACKER Group. The consolidated financial statements cover 47 fully consolidated companies, with three being accounted for using the equity method. In addition, Wacker Chemie AG and a number of its subsidiaries have branch offices, but these are of only minor significance for the Group.

» For more information about changes in the scope of consolidation and the resulting effects, please refer to the "Scope of consolidation" section in the Notes

to the consolidated financial statements.

Four business divisions

(ESRS 2.40 i, ii; ESRS 2.42 b, c)

WACKER has a matrix organization with clearly defined functions and four business divisions.

Each business division has global responsibility for its products, manufacturing facilities, markets, customers and results. Regional organizations are responsible for all business activities in their areas. WACKER's corporate departments primarily provide services for the whole Group, although some also have production-related functions.

Group Structure

Goals and strategies

Strategy of the WACKER Group

WACKER pursues overarching strategic goals. The core elements are profitable growth, leading competitive positions in our business divisions and achieving sustainability. The element that binds together our goals is our corporate purpose: Our solutions make a better world for generations.

In 2022, WACKER published goals for the Group and its individual business divisions for the period up to 2030. We have reviewed these goals with due consideration given to the PACE cost-cutting project launched in October 2025. Under PACE, production and administration expenses are to be reduced to a competitive level. The aim is to save more than €300 million a year by employing appropriate measures. The measures are to be completed by the end of 2027.

Our aim is to accelerate our sales growth over the next few years and increase our earning power by prioritizing improved margins rather than volume growth. Our investments underpin our growth. To this end, we will systematically pursue our specialties strategy in the chemical divisions. We intend to significantly increase capacity utilization at our Biosolutions division's plants. In the polysilicon business, our clear priority is semiconductors, where we aim to remain the world's market and quality leader.

WACKER is focusing on sustainability as a powerful driver of future growth in this area. Our products and solutions help our customers to become more sustainable. Two-thirds of WACKER's product portfolio already contributes to sustainable solutions. Increasing demand in this area is creating growth opportunities, which we want to leverage effectively.

We are also working to enhance our own sustainability. In December 2021, WACKER published specific sustainability targets for the period up to 2030. The main target is to reduce absolute greenhouse gas emissions by half during that time frame.

WACKER aims to achieve a net zero carbon footprint by 2045. Our sustainability targets remain unchanged.

» For further information, visit https://www.wacker.com

Strategy at each business division

(ESRS 2.42 a, b, c)

At Silicones and Polymers, our two chemical divisions, sales are set to grow. At the same time, profitability is to rise. To intensify growth in specialties, we are expanding capacity in the local regions and markets where our customers do business. In doing so, we focus on sustainable solutions. On the one hand, we are developing products that enable our customers to implement more sustainable technologies. At the same time, we are working on improving the sustainability of our own products.

The Silicones division continues to systematically pursue its specialty chemicals strategy, focusing on high-margin growth markets. This approach centers on strengthening customer proximity in the regions with the help of technical services and local development of customized customer solutions. With the construction of a new production site at Karlovy Vary in the Czech Republic, WACKER is strengthening its strategic focus on silicone specialties in Europe. The growth priority is tomorrow's markets, such as electromobility and renewable energy generation, where silicones are essential. Another point of focus is developing sustainable products through carbon-footprint reduction, for instance, or the use of renewable raw materials.

At Polymers, we are supporting future market growth worldwide. Polymers' focus is on tomorrow's sustainable construction market, where its products are making a significant contribution. To this end, WACKER is investing, for example, in expanding capacity for vinyl acetate-ethylene (VAE) dispersions at Calvert City, USA. The portfolio for sustainable product solutions, including those based on renewable raw materials, is being continuously expanded. The same applies to customer-specific solutions.

The Biosolutions division is set to continue growing too, with the business focusing on biopharmaceuticals. Thanks to our technologies, we are well placed in the contract manufacturing of pharmaceutical proteins, messenger RNA, plasmid DNA, live microbial products (LMPs) and vaccines based on bacteria. The division's second pillar is fermentation-based manufacturing of high-quality ingredients for various end markets, such as nutritional supplements, cosmetics and pharmaceuticals. In 2025, we opened the WACKER Biotechnology Center in Munich, with which the Group intends to further strengthen its research activities in biotechnology. We expect the additional research capacity to strengthen the division's growth.

The Polysilicon division intends to continue strengthening its position in the semiconductor industry, in particular, over the next few years. The share of hyperpure semiconductor-grade polysilicon in the division's total output will continue to rise. In 2025, WACKER invested in a new cleaning line at Burghausen intended to increase cleaning capacity for hyperpure semiconductor-grade polysilicon by more than 50 percent. Polysilicon's products address the markets of tomorrow that are key to sustainable transformation. At the same time, the division is continuously improving its own products' sustainability.

Management processes

Value-based management is integral to our corporate policies

Value-based management is an integral part of our corporate policy. Its purpose is to achieve long-term and sustainable growth in our company's value. In our management processes, we distinguish between performance parameters and budget parameters. Performance parameters serve the financial management of the company. They include the EBITDA margin and ROCE. As a target value, the EBITDA margin measures the company's performance relative to its competition, with ROCE showing how efficiently the company employs its capital. The budget parameters EBITDA and net cash flow are also important for management control. In addition to these indicators, BVC (business value contribution) is used as a dedicated budget parameter for calculating variable compensation for Executive Board members. The EBITDA trend is considered to be the most important financial indicator for communication with capital markets.

Key financial performance indicators for the WACKER Group

In 2025, the key financial performance indicators for value-based management were as follows:

• The EBITDA margin (EBITDA as a percentage of sales): We compare historical performance with planned performance as well as with that of the competition, and use the results to calculate a target EBITDA margin. We calculate the weighted divisional average as our target margin for the Group.

• ROCE, or return on capital employed. ROCE is defined as earnings before interest and taxes (EBIT) divided by capital employed. The total of noncurrent assets required for business operations and of working capital makes up our capital employed. Capital employed for a particular year under review is calculated based on the average value for the last four quarters, starting in the fourth quarter of the previous year. ROCE is a clear indicator of how profitably the capital required for business operations is being employed.

• EBITDA (earnings before interest, taxes, depreciation and amortization): This shows the company's operational performance capability before considering the cost of capital. We set absolute EBITDA targets for the business divisions and take the cost of capital into account by using BVC (Business Value Contribution) to determine the internal budget target. To calculate the BVC, the cost of capital and non-operational factors such as restructuring expenses are deducted from EBIT.

• Net cash flow (defined as the sum of cash flow from operating activities and long-term investing activities before securities). Net cash flow shows whether we can finance ongoing operations and necessary investments with the funds from our own operating activities. WACKER's goal is to generate a sustained positive net cash flow. Apart from profitability, the main factors affecting net cash flow are the effective management of net current assets and the level of capital expenditures.

  Changes in accounting policies resulted in adjustments being made to our key performance indicators in 2025. The result from investments in associates was reclassified to the financial result, meaning that it is no longer a component of the EBITDA margin, ROCE or EBITDA. Further information can be found under "Changes in accounting policies" in the Notes to the consolidated financial statements. In addition, starting in 2025, restructuring expenses are, for the first time, eliminated as non-operational factors when the BVC is calcuated.

  Supplementary financial performance indicators

  Alongside the main financial performance indicators, we use other performance indicators that provide us with information on

  sales and liquidity trends, as well as on the Group's debt.

  The supplementary financial performance indicators include:

• Sales: Profitable growth is an important factor in increasing the company's value over the long term and one of the main

  drivers of a positive cash flow trend.

• Capital expenditures: As part of our medium-term planning, we set capital-expenditure priorities and an investment budget. Capital expenditures do not include right-of-use assets from lease accounting.

• Net financial debt: We define net financial debt as the total noncurrent and current financial liabilities and the available liquidity, consisting of securities, cash and cash equivalents.

Development of key financial performance indicators in 2025

EBITDA margin: We expected the EBITDA margin in 2025 to be on par with the prior-year level. The Group actually achieved an EBITDA margin of 7.8 percent. As prices were low, volumes declined and plant-utilization rates were lower in some cases, the EBITDA margin fell well short of expectations. It was also impacted by an unfavorable exchange-rate trend between the euro and US dollar.

1Investments in joint ventures and associates and other income from investments reclassified to other financial result (expense of €329.7 million; prior year: €19.2 million in income); EBITDA and EBIT were adjusted accordingly. Further details can be found in the section "Changes in Accounting Policies".

EBITDA: WACKER initially expected EBITDA for 2025 to come in between €700 million and €900 million (2024: €743.6 million). In July, the company lowered the forecast to a range of between €500 million and €700 million. This adjustment was due to the overall weak market environment, the resultant decline in sales and prices during the first half of the year, and to lower plant-utilization rate in some cases. In addition, the unfavorable exchange-rate trend between the euro and US dollar had a negative impact. On the polysilicon front, WACKER had, moreover, expected the trade-policy uncertainties in the US market for solar-grade polysilicon to have been resolved over the course of the year, with the expectation that demand would have recovered. This did not prove to be the case. Energy costs in Germany remain uncompetitive by international standards, which had a negative impact too. The forecast made in July was already based on the new EBITDA definition necessitated by the reclassification of the result from investments to the financial result. Since no recovery was discernible at the start of the third quarter either, WACKER refined its expectation in the lower half of the expected range of €500 million to

€700 million when it presented its Q3 figures. At year-end, EBITDA totaled €426.7 million. Earnings were impacted by special effects of €102.6 million associated with restructuring as part of the company's PACE cost-saving project. Excluding special effects for restructuring, EBITDA comes in at €529.3 million, which is in the lower half of the forecast range as was to be expected. The discrepancy between the original guidance and the actual result is due to the effects described.

1Investments in joint ventures and associates and other income from investments reclassified to other financial result (expense of €329.7 million; prior year: €19.2 million in income); EBITDA and EBIT were adjusted accordingly. Further details can be found in the section "Changes in Accounting Policies".

2Capital employed is the sum of average noncurrent assets (less noncurrent securities and deferred tax assets), plus inventories and trade receivables (less trade payables). It is the variable used in calculating the cost of capital. Return on capital employed is a ratio indicating how profitably capital is employed.

3Return on capital employed is a ratio indicating how profitably capital is employed.

4In order to calculate the BVC, cost of capital as well as non-operational factors, such as restructuring expenses, are deducted from EBIT.

ROCE: In March 2025, WACKER assumed that full-year ROCE would be at the prior-year level. When the results for Q2 were presented, this forecast was revised to "substantially below the prior-year level." WACKER actually achieved a ROCE of -3.1 percent in 2025. The decline was due to the effects that were described above and which led to a lower EBIT.

Net cash flow: A positive net cash flow substantially higher than in the previous year was forecast in March 2025. In July 2025, WACKER communicated that it expected a more or less balanced net cash flow. WACKER once more adjusted the forecast for this KPI in October 2025. A negative net cash flow was now forecast, although it was expected to be significantly higher than in the previous year. In 2025, WACKER actually achieved a net cash flow of €-3.6 million, down considerably against 2024 (€-326.0 million). The main reason for the improvement was a significant reduction in inventories. The deviation between the original guidance and the actual result is due to the lower EBITDA.

Planning cycle

Strategic planning determines how we can meet value-related and corporate goals. First, our divisions identify their market and competitive positions, and their value-related strength. We then use these results to formulate recommendations regarding strategic positioning and planned steps. All of this is supplemented by innovation and CapEx projects, and approved by the Strategy Conference. There may be deviations from the planning cycle under exceptional circumstances.

Orders

The terms for orders placed with WACKER vary from division to division. Most orders received by the Silicones division are short term, though a small number are long term. At Polymers, business is based on contracts and framework agreements with terms of up to one year in some cases. At Polysilicon, we conclude short- and long-term contracts. A proportion of incoming orders are short-term ones, with prices based on market benchmarks. Due to varying order-placement procedures at the Group, order-level reporting is not very meaningful and hence does not serve as an indicator in our monthly reports.

Strategic and operational planning

Operational planning in the second half of the year addresses strategic-planning decisions with a five-year timeline. The Executive and Supervisory Boards jointly approve the annual plan, which then forms the basis for determining basic forecasts for the current year in early February. We monitor whether we are meeting our forecasts by means of monthly comparisons of planned and actual figures.

Financing strategy

The goal of WACKER's financing strategy is to ensure sustainable growth and stability for the Group. This strategy

comprises both financing through our own resources and the use of debt instruments.

We ensure the Group's uninterrupted solvency with rolling cash-flow planning and an adequate volume of lines of credit. Financing requirements are calculated for the entire Group, with loans usually being taken out at the corporate level. In individual cases, financing is available for specific projects or regions.

» For details of the financing measures implemented in 2025, please refer to the "Financial position" section.

Operational metrics as leading indicators of future developments

By using specific leading indicators based on operational metrics, we try to anticipate potential developments into our business plans and to allocate capacities accordingly. Since we operate in diverse businesses and markets, we use a number of leading indicators to gain insights into potential developments at each of our business divisions. Indicators include trends in raw-material and energy prices, as well as data from our own market research and discussions with customers.

Operational control instruments

We control operational processes via our integrated management system (IMS). This system defines uniform standards throughout the Group for issues relating to quality, environmental protection, and health and safety. We have our Group management system analyzed by an international certification organization in accordance with uniform standards based on ISO 9001 (quality) and ISO 14001 (environment).

‌Governance‌

The section on "Governance" includes the designated disclosures pursuant to ESRS 2.40 and ESRS 2.42 of the sustainability reporting on strategy, business model, and value chain. The relevant sections include a corresponding reference in brackets below the headings.

In compliance with the German Stock Corporation Act (AktG), Wacker Chemie AG has a two-tier management system, comprising an Executive Board and Supervisory Board. The Executive Board has four members.

Wacker Chemie AG is the parent company and thus determines the Group's strategy, overall management, resource

allocation, funding, and communications with key target groups (especially with the capital market and shareholders).

Executive Board and Supervisory Board in 2025

There were no changes to the composition of Wacker Chemie AG's Executive and Supervisory Boards in 2025.

» For details about Executive Board responsibilities, please refer to the Sustainability Report

Declaration on corporate management

The declaration on corporate management required by Section 315d in combination with Section 289f of the German Commercial Code (HGB) is included in the Annual Report; however, it does not form part of the combined management report. It is also made publicly available on Wacker Chemie AG's website. It contains the Executive and Supervisory Boards' work procedures, the declaration of conformity pursuant to Section 161 of the German Stock Corporation Act (AktG), and information on key corporate management practices. It also includes: targets for the proportion of women on the Supervisory Board and Executive Board, and in the two levels of management below the Executive Board, as well as deadlines for implementation; statutory minimum quotas to be observed when filling Supervisory Board positions; and information on the company's diversity strategy.

» https://www.wacker.com/corporate-governance

Non-financial statement for the Group

The non-financial statement that is to be submitted in accordance with Sections 315b and 315c, and 289b and 289c of the German Commercial Code (HGB) is part of the combined management report. This non-financial report includes a description of the Group's business model and details of environmental concerns, social issues and personnel matters, as well as information on respect for human rights, and on combating bribery and corruption. The auditors of the consolidated financial statements reviewed the Group's non-financial report within the scope of a limited assurance engagement.

» https://www.wacker.com/annual-report

Executive Board and Supervisory Board compensation

Executive Board compensation contains both fixed and variable components. The main features of the compensation system for the Executive Board and Supervisory Board are described in the compensation report. The compensation report is published as a separate report.

Key products, services and business processes

(ESRS 2.40 a i; ESRS 2. 42 a, b, c)

Overall, the range of products and services at each of our divisions remained unchanged in 2025. In several application areas, however, we expanded our product portfolio.

Silicones is the business division with the broadest range of products. Two raw materials - silicon metal and methanol - are the basis for making over 2,800 silicone products in seven product groups: silanes, siloxanes, silicone fluids, silicone emulsions, silicone elastomers, silicone resins and pyrogenic silica. Silicones have numerous chemical, mechanical and tactile properties that can be precisely adjusted and newly combined time and again. Silicones are extremely durable, stress-resistant, water-repellent and UV-resistant. They are just as indispensable in everyday applications as they are in developing innovative, new technologies.

The Polymers division makes state-of-the-art binders and polymeric additives (such as dispersible polymer powders and dispersions). They are used in diverse industrial applications or as base chemicals. The main customer for polymer binders is the construction industry. Other customers include the paint, coating, paper and adhesive industries.

The Biosolutions division supplies customized biotech and catalog products for fine chemicals. Products include pharmaceutical proteins, vaccines, cyclodextrins, cysteine, polyvinyl acetate solid resins (for gumbase) and acetylacetone. The division focuses on customer-specific solutions for growth areas, such as pharmaceutical actives, food additives and agrochemicals.

The Polysilicon division produces hyperpure polysilicon for the semiconductor and solar sectors.

Integrated production system - WACKER's great strength

A key competitive advantage for WACKER is the highly integrated material loops at its major production sites in Burghausen, Nünchritz and Zhangjiagang. The basic principle of integrated production is to use the byproducts from one stage as starting materials for making other products. The auxiliary materials required for this, such as silanes, are recycled in a closed loop. Similarly, waste heat from one process is utilized in other chemical processes. As such, integrated production cuts energy and resource consumption, lastingly improves raw-material use and makes environmental protection an intrinsic part of the production process.

Major sales markets and competitive positions

WACKER's three largest divisions rank among the top three suppliers worldwide.

Competitive positions of WACKER's divisions

The Polysilicon division is one of the leading producers of hyperpure polysilicon worldwide. According to in-house analyses, Polysilicon is the global No. 1 for polysilicon supplied to the semiconductor sector.

Silicones is No. 2 globally and leads the market in Europe. In building-protection silicones, WACKER is the global market leader. Silicones are used in every major industry due to their versatile properties and play a vital role in the sustainable transformation of mobility, energy supply and digitalization.

The Polymers division is the world's largest producer of VAE dispersions and dispersible polymer powders. We are the only company in the market with a complete supply chain for dispersions and dispersible polymer powders in Europe, the Americas and Asia. We consider Asia to offer the largest growth potential.

Biosolutions focuses on customer-specific solutions in sectors with strong growth. We have achieved a strong market position in contract manufacturing of pharmaceutical proteins, messenger RNA, plasmid DNA, live microbial products (LMPs) and vaccines based on bacteria. The Biosolutions division is the global leader in cyclodextrins.

Economic and legal factors

WACKER sells its products and services to virtually every industry. Although our business divisions are not immune to economic fluctuations, their onset and impact may vary. Our product portfolio and broad customer base enable us to mitigate the magnitude of such fluctuations.

Economic factors impacting our business

The main economic factors influencing WACKER's business remained unchanged in many areas.

Raw-material and energy costs

As a chemical company, we belong to an energy-intensive industry and require diverse raw materials to manufacture our products. Consequently, raw-material and energy costs have a significant impact on our cost structure. Energy and raw material prices fell slightly overall in 2025 amid the general economic slowdown. WACKER strives to keep costs at a competitive level, which is why it works together with multiple suppliers for most of its key raw materials. The supply contracts are structured to grant WACKER sufficient flexibility as regards volumes, and to ensure competitive procurement of raw materials by adopting suitable pricing mechanisms. However, a problem is posed by the fact that some prices in Europe are significantly higher than in other regions due to regulatory requirements. Contributory factors include not only the CO2 emissions trading system (ETS), but also energy taxes, anti-dumping import duties and, in the case of electricity, shutdowns of conventional power plants for political reasons, and sluggish grid growth. Although the electricity and natural-gas prices paid at European industrial sites are very high due to Russia's attack on Ukraine, they did decrease between 2023 and 2025. Nevertheless, they are still markedly higher than in other regions. In 2025, WACKER continued to strongly advocate the introduction of an industrial electricity price at internationally competitive terms. While the German government has started to implement the option enabled at European level to set up national industrial electricity price models, a number of relevant details regarding the actual structure have yet to be clarified as the legislative process remains ongoing.

Exchange-rate fluctuations

As a rule, WACKER hedges against exchange-rate fluctuations. We hedge about half of our US dollar exposure for the following year with a mix of currency-hedging transactions. In determining sensitivity, we simulate a 10-percent devaluation of the US dollar against the euro. Without hedging, such an increase in the euro against the US dollar would have a negative impact on EBITDA of around €27 million. There are still hedging transactions in Japanese yen (JPY) that were concluded back in 2021 and 2022 and will run until 2033.

Polysilicon-related tariffs and market barriers motivated by trade policy considerations

As one of the world's leading suppliers of hyperpure polycrystalline silicon, we are sensitive to demand trends in the semiconductor and solar industries. Both the semiconductor market and the solar power industry are also affected by tariffs and market barriers motivated by trade policy considerations.

Statutory information on takeovers

Information required by Section 315a (1) of the German Commercial Code (HGB)

The following table contains information required by Section 315a (1) of the German Commercial Code (HGB):

§ 315a (1) 1 Composition of subscribed capital: Wacker Chemie AG's subscribed capital comprises 52,152,600 non-par

value voting shares. No other share classes have been issued. The total number of shares currently includes 49,677,983 held by external shareholders and 2,474,617 held by Wacker Chemie AG itself.

WACKER's treasury shares were acquired by repurchasing Wacker Chemie GmbH shares in August 2005, when it was still a private limited company. The Executive Board may use or sell 1,692,317 of these treasury shares with the consent of the Supervisory Board; use or sale of the remaining 782,300 shares requires Supervisory Board approval as well as a resolution by the Annual Shareholders' Meeting.

§ 315a (1) 2 Restrictions on voting rights or on the transfer of

shares:

There are no restrictions on voting rights or the transfer of shares.

§ 315a (1) 3 Direct or indirect capital stakes: Each of the following holds a stake of over 10 percent of the subscribed

capital: Dr. Alexander Wacker Familiengesellschaft mbH, based in Munich; Blue Elephant Holding GmbH, based in Pöcking; and Dr. Peter-Alexander Wacker, resident in Bad Wiessee and to whom the voting shares of Blue Elephant Holding GmbH are attributable.

§ 315a (1) 4 Owners of shares with special rights: Shareholders have not been given any special rights that bestow powers

of control.

§ 315a (1) 5 Method of voting-right control in the case of employee

participation: Insofar as employees hold shares in Wacker Chemie AG's capital, they

exercise their resulting control rights directly.

§ 315a (1) 6 Statutory provisions and articles of association

regarding the appointment and dismissal of executive board members and amendments to said articles:

The provisions to appoint and dismiss Wacker Chemie AG's Executive Board members are based on Section 84 et seq. of the German Stock Corporation Act (AktG). Wacker Chemie AG's Articles of Association do not contain any further provisions in this respect. Pursuant to Article 4 of the Articles of Association, the number of Executive Board members is fixed by the Supervisory Board, which also appoints an Executive Board member as President & CEO. Amendments to the Articles of Association are covered by Sections 133 and 179 of the German Stock Corporation Act. In accordance with Section 179 (1) sentence 2 of the Act, the Supervisory Board has been empowered to amend the Articles of Association if only the wording thereof is affected.

§ 315a (1) 7 Authority of the executive board to issue or buy back shares:

In accordance with a resolution passed at the Annual Shareholders' Meeting on May 7, 2025, Wacker Chemie AG's Executive Board was authorized - in compliance with the legal provisions set out in Section 71

(1) no. 8 of the German Stock Corporation Act - to acquire treasury shares totaling a maximum of 10 percent of capital stock. No capital has been authorized for the issue of new shares.

§ 315a (1) 8 Major agreements associated with changes of control due to a takeover bid:

§ 315a (1) 9 Severance agreements with the executive board or

Various agreements with joint-venture partners include change-of-control clauses, which stipulate what is to happen if one of the joint-venture partners is taken over. These arrangements comply with the usual standards for such joint-venture agreements. In addition, several loan agreements contain change-of-control clauses. Here, too, the clauses are typical of this type of agreement.

employees in the event of a takeover bid: There are no severance agreements or similar with employees or with

Executive Board members in the event of a takeover bid.