GERMAN INVESTMENT SEMINAR, NEW YORK

Transcription

1 GERMAN INVESTMENT SEMINAR, NEW YORK Dr. Rudolf Staudigl, CEO, January 15, 2013 CREATING TOMORROW'S SOLUTIONS

2 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. 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. Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 1

3 WACKER - HIGHLY INTEGRATED OPERATIONS BASED ON FOUR KEY RAW MATERIALS Raw Material Upstream Downstream Customers Industries Silicon Metal Siloxane Pyrogenic Silica Silicones Construction Automotive Suppliers Paints and Coatings Textiles Print and Paper, Personal Care Polysilicon Electronic Wafers Hyperpure Silicon Wafers Semiconductors Solar Modules Eng. Fabrics, Coatings. Adhesives Ethylene VAE Dispersible Polymer Powders (DPP) Construction (Tile Adhesives. Dry Mortars. EIFS) Acetic Acid VAM PVAc Automotive, Food Starch/Dextrose Microb. Fermentation Therapeutic Proteins Food ingredients Food, Life Sciences, Household VAM = Vinyl acetate monomer. VAE = Vinyl acetate ethylene, PVAc = Polyvinyl acetate, EIFS = Exterior insulation and finish system Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 2

4 SOLID GROWTH PERFORMANCE OUTPACING GDP CYCLES Sales Performance 5,000 4,000 3,000 3,781 3,337 2,756 4,298 3,719 4,748 4,910 * 35% 25% 15% Leading market shares Leading production and process technology Addressing multiple growth platforms 2,000 1,000 5% Strong productivity and cost focus 0-5% World-scale production sites Sales in m EBITDA margin % *Guidance: Sales 4.6bn 4.7bn EBITDA at about 750m Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 3

5 OUR BUSINESS PORTFOLIO A FOUNDATION FOR GROWTH Siltronic Strong no. 3 Technology leader Balanced base of customers BIOSOLUTIONS High potential for future development 20% 3% 19% POLYMERS No. 1 in dispersible polymer powders No. 1 in VAE dispersions Global footprint POLYSILICON Cost and quality leader Strong no. 2 in capacity 25% FY 2011 Sales 4,910m 33% SILICONES Strong no. 3 Commodity base & specialty strength Impeccable growth record High focus on China / Asia Innovation & Engineering Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 4

6 INCREASED DEMAND FROM CONSTRUCTION INDUSTRY SUPPORTED GROWTH OF VINNAPAS PRODUCTS 1, % % % 10% 200 5% M/12 0% Sales in m EBITDA margin % Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide : Acquisition of Air Product Polymers and Wacker Polymer Systems Sales and EBITDA margin adjusted for gumbase reclassification

7 RAW MATERIAL DYNAMICS TOGETHER WITH CONTINUOUS INNOVATION PROVIDE OPPORTUNITIES FOR VAE VAE* SB Oxygen Natural gas (C1, C2) Oil (C2, C3, C4, C6) Styrene-butadiene (Latex) Vinyl Acrylics PVAc-Homopolymers PVA-Copolymers SA Oxygen Oil (C2, C3, C4, C6) VAE* Opportunity Styrene acrylics (SA) and butadiene (SB) based on crude oil Price development of gas to the benefit of VAE Styrene Acrylics Pure Acrylics Source: WACKER analysis Long-term evolution with initial successful outcomes *VAE = Vinyl Acetate Ethylene Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 6

8 POWDER GROWTH DRIVEN BY SUBSTITUTION TRENDS Construction Polymers market trends (DPP) Job-Site Mix Processing Substitution Ready-Mix 2K pasty/wet Technology Substitution 1K dry Thick-Bed Application Method Substitution Thin-Bed Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 7 DPP: dispersible polymer powder 2K: two component system 1K: one component system

9 GROWTH SUPPORTED THROUGH SUBSTITUTION, INNOVATION AND EMERGING MARKETS 1,800 1,581 1,594 25% 1,500 1,200 1,119 1,287 1,361 1,409 1,239 1,256 20% 15% % 300 5% M/12 0% Sales in m EBITDA margin % Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 8

10 STRONG NR. 3 IN SILICONES SERVING A DIVERSE MARKET Competitive Landscape 2011 Silicones Market 2011 Silicones Others 8% Momentive 18% Dow Corning 37% 9.3bn WACKER 16% Bluestar 8% Shin-Etsu 13% Textile 6% Paper 5% Others 7% Constr./ Renov. 20% Electronics/ Energy 11% Plastics 10% 9.3bn Chemical Industry 16% Automotive 12% Health & Wellness 13% * Source: WACKER estimates * Source: WACKER estimates Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 9

11 AN ALTERNATIVE TO THE CRUDE OIL BASED PLASTICS INDUSTRY TPSE* / TECTOSIL LEDs substituting epoxy resin LED: Silicone with better sealing, perfect optical performance and easier customer application Strategy: Competence center Korea close to leading OEM s Sealing substituting acrylics Sealing: Superior silicone-performance. WACKER with highest integrated production from basics to customized cartridge. Strategy: Regionalized offerings TPSE* higher quality alternative to EVA* TPSE*: Superior silicone-performance with fast and low-cost processing with customer s already existing thermoplastic-equipment Strategy: Approach Solar OEM s Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 10 *TPSE = Thermo plastic silicone elastomers EVA = Ethylene-vinyl acetate

12 FOCUS ON CUSTOMER-SPECIFIC SOLUTIONS FOR GROWTH AREAS, SUCH AS FOOD ADDITIVES ETC % 50% 40% 80 30% 60 20% % M/12 Sales in m EBITDA margin % 0% Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 11

13 WACKER BIOSOLUTIONS - SERVING PROFITABLE NICHES Leveraging global market position in gumbase Solid demand growth in food and pharma industry New applications driving growth in cyclodextrins and cysteine (e.g. emulsification, dietary supplements and vegetarian cysteine) Specialized in custom-manufacturing production of biologics (biopharmaceuticals) Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 12

14 SUPPLYING THE LEADING SUBSTRATE FOR FAST GROWING INDUSTRIES: SOLAR AND SEMI 1,800 60% 1,448 1,500 1,369 50% 1,200 1,121 40% % % 10% M/12 0% Sales in m EBITDA margin % Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 13

15 WACKER POLYSILICON - LEADING SUPPLIER TO THE SOLAR INDUSTRY Fast-decreasing PV system prices Improving relative competitiveness versus other renewable and conventional energies Crystalline-silicon based PV won the technology race with about 90% share (multi and mono) Focusing on costs and further strengthening of leading position in quality and capacity *Source: Morgan Stanley research; Market surveys; Industry announcements; WACKER analysis Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 14

16 FAST DECLINING PV SYSTEM PRICES SPUR PV TO BECOME EVEN MORE COMPETITIVE WITH GAS AND WIND PV System Price ( /Wp) LCOE* ( Cent/kWh), 30 years (Germany, ground-mounted) (ground-mounted) Prices in other countries PV Germany PV Spain Wind Offshore Wind Onshore Gas Power Plant Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide Source: LBBW 02/2009, Industry announcements, WACKER Analysis * LCOE = Levelized Cost of Electricity

17 RESCHEDULING THE TENNESSEE PROJECT ALIGNING CAPACITY GROWTH WITH THE MARKET Tennessee, US 18 months Poly 11 New schedule Rescheduled Construction Ramp-up Poly 11 Original Plan Construction Ramp-up Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 16

18 FOCUS ON SEMICONDUCTORS WITH EXPANSION IN JV SAMSUNG includes substantial solar business 1,600 1,263 1,452 1,361 40% 30% 1, , % 10% 0% % -20% M/12-30% Sales in m EBITDA margin % Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 17 does not include sales volumes at-equity from Singapore JV on 300mm (since 2008)

19 SILTRONIC STRONG NUMBER 3 Global structure and demand for silicon wafer 300 mm 200mm <200 mm Memory stable demand growth Logic shift to 300 mm Power shift to 200 mm 2012 <200 mm 200 mm 300 mm 300 mm 200 mm 2020 <200mm Increasing demands in technology and volume at 300 mm Continuing cost reduction Consistent implementation of lead site strategy in 200 mm; cash focused development No investment in 450 mm due to lack of financial attractiveness Receiving the prestigious Intel quality award for Source: SEMI; Siltronic analysis Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 18

20 SILTRONIC FOCUSES ON INVESTMENT IN SSW (PARTNERSHIP WITH SAMSUNG) Fab in operations since mid 2008 Attractive cost position Further capacity increase from debottlenecking Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 19

21 NET DEBT RISING AS PLANNED FIRM CAPEX AND WORKING CAPITAL CONTROLS IN PLACE Securities, Cash & Cash E. Current Assets Noncurrent Assets Assets Total 6.6bn 6.2bn Balance Sheet (%) 12% 14% 25% 25% 64% 61% 09/30/12 12/31/11 Liabilities Total 6.6bn 6.2bn 17% 19% 18% 12% 9% 8% 16% 18% 40% 42% 09/30/12 12/31/11 Prepayments Financial Debt Pension Accruals Accruals & Liabilities Equity Characteristics 09/30/12 Noncurrent assets: 4,277m Securities, cash and cash equivalents: 766m Provisions for pensions: 559m Net financial liabilities: 411m Equity: 2,652m Prepayments received per 09/30/12: 1,113m 300m Promissory notes (German Schuldschein) issued in Feb, 2012 Capex: 722m (Q3: 291m) Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 20

22 ESTABLISHING A GLOBAL FOOTPRINT TO SERVE LOCAL MARKETS Nünchritz, DE Ulsan, KR Tennessee, US Nanjing, CN Zhangjiagang, CN Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 21

23 WACKER A COMPANY WITH AN ATTRACTIVE PORTFOLIO AND ROBUST FINANCIALS Summary Attractive portfolio Chemical businesses: appr. 60% of Group sales, intact growth potential driven by substitution, stable profitability, increasing share of specialties Siltronic: business < 300mm restructured; 300mm with strong position in Singapore JV POLYSILICON: performance currently impacted by shake-out in PV industry; long-term growth potential Robust financials Strong balance sheet Significant liquidity and credit lines available From 2013 onwards reducing capital intensity of growth Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 22

24 THANK YOU FOR YOUR ATTENTION. FY 2012 RESULTS WILL BE PUBLISHED ON MARCH 14 th, 2013 Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 23

25 WACKER: ISSUER, CONTACT AND ADDITIONAL INFORMATION ISSUER AND CONTACT Wacker Chemie AG Hanns-Seidel-Platz 4 D Munich Investor Relations contacts Mr. Joerg Hoffmann Tel joerg.hoffmann@wacker.com Mrs. Judith Distelrath Tel judith.distelrath@wacker.com Mrs. Manuela Ellmerer Tel manuela.ellmerer@wacker.com ADDITIONAL INFORMATION ISIN: WKN: Deutsche Börse: Ticker Bloomberg: Ticker Reuters: Listing: DE000WCH8881 WCH888 WCH CHM/WCH:GR CHE/WCHG.DE Frankfurt Stock Exchange Prime Standard FINANCIAL CALENDAR 03/14/13 FY Results /30/13 Q1 Results /08/13 Annual Shareholders Meeting 07/30/13 Q2 Results /31/13 Q3 Results 2013 Dr. Rudolf Staudigl, CEO, January 15, 2013, Slide 24