20th of May 2025 New York
Wacker Chemie AG Specialties, Customer Focus, and EfficiencyBerenberg European
Conference
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Dr. Christian Hartel, CEO
1
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WACKER: At a Glance
Facts & Figures
€5.7bn
Sales in 2024
€763m
EBITDA in 2024
13.3%
EBITDA margin in 2024
4
Business Segments
16,637
Employees
27
Production Sites
21
Technical Centers
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45
Scientific collaborations
WACKER: At a Glance Sales by Segment and Market Position
Market Leading Positions
POLYSILICON
No. 1 in semi
SILICONES
No. 2
Sales FY 2024
POLYMERS
OTHERS
No. 1BIOSOLUTIONS
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Leading in niches
WACKER: At a Glance Leading Positions in Key Markets with a High Degree of Specialization
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SILICONES POLYMERS BIOSOLUTIONS POLYSILICON
Key markets:
Construction
Industry & Automotive
Additives
Consumer
Health & Care
Key markets:
Construction
Consumer & Industrial
Key markets:
BioPharma
BioIngredients
Life Sciences
Key markets:
Semiconductor
PV Solar
WACKER: At a Glance Selected Events from our 100 Year+ History
From 1914 to Today
1914 | 1921 | 1947 | 1953 | 1966 | 1998 | 2005 | 2006 | 2010 |
Foundation ″Dr. Alexander Wacker Ges. für elektro-chemische Industrie KG″ | Hoechst with 50% of the share capital of WACKER | Start of work in the area of silicones | Production of semi grade polysilicon | Production of VAC- Ethylene-Copolymer | SILICONES Nünchritz (DE), JV with APCI: APP/WPS1 | Jena ProThera acquisition | WACKER IPO; JV with Dow Corning (CN), JV Siltronic Samsung Wafer | Silicon smelter acquisition Holla (NO) |
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2022 | 2023 | 2024 |
Scil Proteins | Siltronic IPO, | Polysilicon | VAE and DPP | BioPharma | Plasmid DNA | SICO | ADL | mRNA |
acquisition | De- | Charleston, | expansion | Acquisition | acquisition | acquisition | acquisition, | Competence |
Halle (DE) | consoldation | TN (USA) | Ulsan (KR) | Amsterdam | San Diego, | Jining (China) | León (ES) | Center, Halle |
2017 | Fumed silica | (NL) | (US) | SILICONES | (DE) | |||
2019 | Panagarh | |||||||
(IN) |
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1) APP/WPS = Air Products Polymers/WACKER Polymer Systems
LOWER CHEMICAL PRODUCTION IN EUROPE & VOLUMES SHIFTED TO CHINA
Geopolitical Tensions
Chemicals Recession
DEVELOPMENT OF CHEMICAL PRODUCTION1.2
1.1
1.0
Trade Uncertainty
Biotech Funding Downturn
0.9
2021 2022 2023 2024 1Q25
North America Europe Asia
6
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Source: ACC CPRI (American Chemistry Council, Chemical Production Regional Index, 2021 = 1.0)
DESPITE WEAK MARKET ENVIRONMENT, WE EXECUTED ALONG OUR STRATEGY - WE FOCUS ON 3 AREAS
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We Invested In Growth & Innovation
We Improved
Our Sustainability Profile
We Improved Our Resilience
WE IMPROVED OUR SUSTAINABILITY PROFILE
CLEAR PROGRESS TOWARDS 2030 TARGETS AND NET ZERO BY 2045+13%
94%
83%
100%
100%
-30%
70%
50%
57%
+47%
84%
100%
2020 2024 2030
100% Sustainable ProductsImproved product performance to meet higher customer, social & regulatory requirements
2020 2024 2030
Cut CO2Emissions1 by 50%Increased share of renewable energy in electricity mix
2020 2024 2030
100% Sustainable SupplierWorked within TfS2 to improve EHS3 practices of suppliers
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1) Scope 1+2 emissions 2) TfS = Together for Sustainability Initiative
3) EHS= Environmental, Health & Safety
PATH TO €10BN IN SALES IN 2030: KEY DRIVERS ALONG 4 FOCUS AREAS Megatrends Portfolio management
Pull from: Sustainability, Smart Construction, Health & Wellbeing, Digitalization
Focus on high-value-add specialty solutions
Innovation RegionalizationBespoke solutions for existing,
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new and future customer applications
Global production and technical center setup
MEGATREND: SUSTAINABILITY PULL
SUSTAINABILITY DRIVES DEMAND ACROSS ALL SEGMENTS Product portfolio We enable customers to develop sustainable products2/3 of sales with resource saving technologies
Innovative solutions that improve the performance of key CO2saving technologies in:
Smart construction E-mobility
Wind & solar renewable energy Bioingredients
Digitalization
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We enable customers to achieve their own sustainability goals
MEGATREND: SUSTAINABILITY PULL
SILICONES: TAILOR-MADE, SPECIALTY SOLUTIONS FOR NEW ENERGY VEHICLES (NEV)
Silicones are essential to a range of key NEV components
Great performance under demanding conditions
EV's with up to 4x higher silicone content per vehicle
Market outlook
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Rapid EV growth needed to meet global climate targets
MEGATREND: SMART CONSTRUCTION PULL
SILICONES: BROAD RANGE OF SPECIALTIES FOR BEST-IN-CLASS BUILDING MATERIALS
Hybrid silicones Silicone resin emulsion paints
Continuous development to address new applications
Elastic sealants & adhesives with clear performance benefits
Market outlook
Transformation, substitution & easy formulation drives 10% market growth1 p.a.
Solutions for long-lasting, energy-saving façades
Water repellent, breathable &
UV stable define high-performance advantages
Market outlook
EU Green Deal2 as catalyst for renovation rates: up 2x in 2030 vs. 2020
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Markets and Markets
European Commission's Renovation Wave Strategy
MEGATREND: HEALTH & WELLBEING PULL
SILICONES: ADHESIVES
FOR HEALTHCARE APPLICATIONSThe preferred solution for advanced wound care
Skin friendly, breathable & atraumatic removal promotes faster wound healing
Solutions for existing, new & emerging healthcare applications
Market outlook
Ageing population (> 2bn above 60 by 2050)
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Strong growth in new wearables & biomedical device applications
MEGATREND: DIGITALIZATION PULL
SILICONES: ENABLING VIBRANT DISPLAYS & ADVANCED CHIP MANUFACTURING
LED
mini-LED
Dome encapsulants
Optical bonding
Electronic chemicals
New solutions for premium high-resolution mini-LED TVs
Superior optical stability for automotive & wearable displays
High-purity chemicals essential for high-performance chips
Market outlook
Market outlook
Market outlook
6x increase in mini-LED TV sales
Growth in auto & substitution
Growth driven by AI &
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until 2030 forecasted1
1) Source: Omida
in wearables drive demand
Internet of Things
STRINGENT PORTFOLIO MANAGEMENT
SILICONES: DIFFERENTIATED FOCUS ON SPECIFIC, HIGH-PRICED SPECIALTY END MARKETS
Looking within Specialties at a granular level with a focus on market attractiveness & ability to win
Core: Differentiated growth approach based on market outlook
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Focus: Profitability improvement & portfolio measures - limited volume growth
Core
Focus
Growth
Growth: Invest in capacities & capabilities to significantly outgrow market
MEGATREND: SMART CONSTRUCTION PULL
POLYMERS: ENABLING NEW CONSTRUCTION TRENDS WITH HIGH PERFORMANCE SOLUTIONS
Tile adhesives
Skim coat
3D printing concrete
Transformation from thick-bed to thin-bed CTA1
High quality, long lasting & easy-to-apply finishes
Printing buildings or construction components
Market outlook
Transformation, substitution & sustainability drive demand above global construction growth rates
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1) CTA = Cementitious Tile Adhesive
MEGATREND: SUSTAINABILITY PULL
POLYMERS: DPP ENABLES DRY MIX MORTAR PERFORMANCE & CO2SAVINGSSustainable solutions needed for cement industry
New, lower CO2emission composite cements affect dry mix mortar performance
Additional customer support with formulation know-how required
Market outlook
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Cement industry CO2reduction targets drive switch to composite cements
STRINGENT PORTFOLIO MANAGEMENT
POLYMERS: FOCUS ON PROFITABILITY & PORTFOLIO EXPANSION
Regional life cycle for CTA (growth rates)
Differentiated strategy to capture specific regional opportunities
E. Europe
W. Europe
Introduction - Transform via market education & technical support
Growth - Increase market penetration via portfolio offering & innovation
CN
India
Maturity & beyond: Develop markets
Customized
Advanced
Modified
Unmodified
to higher performance & customized products (e.g. hydrophobicity, rheology)
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Introduction Growth
Maturity
Re-innovation
Leverage diverse, sustainable portfolio to meet specific customer needs (e.g. composite cement)
MEGATREND: HEALTH & WELLBEING PULL
BIOSOLUTIONS: CUTTING-EDGE TECHNOLOGIES FOR NEXT-GENERATION MEDICINES
CDMO with a proven record:
Technologies for recombinant proteins, live microbials, pDNA, mRNA and LNP formulation
Part of German Pandemic Preparedness Program
Market outlook
1,000's of advanced therapies currently
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in clinical development
MEGATREND: HEALTH & WELLBEING PULL
BIOSOLUTIONS: PRECISION FERMENTATION FOR SUSTAINABLE PRODUCTS
From pilot to commercial scale production
Serving customers as CDMO and commercializing our own products
Addressing multiple end markets
(food, personal care, flavors and fragrances)
Market outlook
7x increase of precision fermentation market until 20401
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1) BCG, "Breaking Cost Barrier in Biomanufacturing"
MEGATREND: DIGITALIZATION PULL
POLYSILICON: BENCHMARK QUALITY & PROCESS ENABLE LEADING EDGE DESIGN RULES
Polysilicon requirements constantly higher
Very high requirements = very high barriers to entry
Etching Line Next
Entirely new, smart advanced reactor control approach drives process excellence
Market outlook
10x purity, e.g. Iron
Today 2026
Demand from rapidly growing semi markets: 300mm wafer market 8% CAGR1 (2022-27)
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1) WACKER estimates
MEGATREND: Sustainability
POLYSILICON: WACKER IS THE LARGEST WESTERN POLYSILICON PRODUCER
US PV solar installations (GW) 1
US PV Solar Market Decouples from Global PV dynamics due to trade restrictions
60 US Solar module prices 2x higher than global prices
50
40 US reshoring of PV value chain underway and
requires compliant materials
30
20
10
2021 2022 2023 2024 2025e
Market outlook1
PV solar represents 66% of new US electricity-generating capacity additions in 2024
In 2025, the US market is expected be stable at about 50 GWs
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1) Wood Mackenzie/SEIA, March 2025
INNOVATION
A GLOBAL NETWORK: PROJECTING R&D INTO THE REGIONS21 technical competence centers close to customers
Germany: Consortium
corporate R&D
USA: Regional innovation centers for silicones & polymers
China: Competence center for cement & concrete
Korea: Center of excellence electronics
India: Competence center for personal care & textiles
Production:
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(Europe 10 | America 8 | Asia 9)
Technical Competence Centers (Europe 3 | America 6 | Asia 12)
INNOVATION
A GLOBAL NETWORK: WACKER ACADEMIES CLOSE TO CUSTOMERSThe ACADEMY is a key differentiator Drive value-based substitution, transformation
Combining product, application & service to keep and
win customers
SILICONES: Accelerate innovation with bespoke,
industry specific solutions
Equipped for in-person & virtual trainings
POLYMERS: Individual service to support & educate customers: global key accounts to local champions
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14 academies
500+ experts/trainers
Since 2021:
2,300+
events
33,000+
participants
MAINTAINING RESILIENCE
FINANCIAL POSITION:
MAINTAIN SOLID CAPITAL STRUCTURE Group balance sheet - target structureNon-current assets
CapEx > depreciation
Equity
Equity ratio ~ 50%
Dividend policy: ~ 50% of net income
Working capital DIO: ~ 70 - 80 days DSO: ~ 50 days
Liquidity min. 1x annual CapEx
Financial debt: NFD/EBITDA:
allowing for flexibility around ~ 1.0x
Provisions for pensions
Liabilities/other accruals
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DPO: ~ 60 days
CAPITAL ALLOCATION PRIORITIES
SOLID FINANCIAL FOUNDATION SUPPORTS GROWTH & SHAREHOLDER RETURNS1. Growth 2. Shareholder returns
CapEx: CapEx > Depreciation
M&A: Earnings-accretive / early-stage bolt-ons
Dividend policy unchanged
~ 50% of net income from continuing operations
Foundation: Strong balance sheet with solid capital structure
Financial flexibility
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Net financial debt / EBITDA target at ~ 1.0x
CAPITAL ALLOCATION PRIORITIES
CONSISTENT DIVIDEND POLICY: PAYOUT MATCHES PERFORMANCEDividend (€)
12.00
∑ 25.50
Dividend policy:
Unchanged: ~ 50% of net income from continuing operations
Tied to market conditions
2.00 2.00
2.50
2.00
4.50
2.50
0.50
2.00
8.00
3.00 2.50
Boundary conditions: Overall business conditions Financial status
Approval of AGM
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
40%
56%
52%1
51%
n.a
53%
49%
48%
48%
52%
Payout Ratio2
Total payout 2021-2024:
~ €1.2bn
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1) Excluding Bonus 2) Payout ratio = dividend/net income attributable to shareholders of Wacker Chemie AG
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 management's current views and assumptions and involve known and unknown risks and uncertainties. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, other words such as "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forward-looking statements.
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By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changing business or other market conditions and the prospects for growth anticipated by the Company's management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any statements contained in this presentation, whether as a result of new information, future events or otherwise. In particular, you should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.
WACKER: ISSUER, CONTACT AND ADDITIONAL INFORMATION Issuer and Contact Financial Calendar
INVESTOR RELATIONS CONTACTS
Joerg Hoffmann, CFA
Tel. +49 89 6279 1633 | joerg.hoffmann@wacker.com
Scott McCollister
Tel. +49 89 6279 1560 | scott.mccollister@wacker.com
Wacker Chemie AG
Gisela-Stein-Straße 1, D-81671 Munich investor.relations@wacker.com
July 31, 2025 Q2 2025 Results
Oct. 30, 2025 Q3 2025 Results
Additional Information PublicationsFactbook 2024
ISIN DE000WCH8881
WKN WCH888
Deutsche Börse WCH
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CUSTOMER
MAGAZINE
FACTBOOKANNUAL REPORT & ESG
DISCLOSURES
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Wacker Chemie AG published this content on May 16, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 16, 2025 at 08:25 UTC.
