6 TH CAPITAL MARKET DAY 2012, DRESDEN

Transcription

1 6 TH CAPITAL MARKET DAY 2012, DRESDEN September 11, 2012 Wacker Chemie AG 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. Capital Market Day 2012 Joerg Hoffmann, Investor Relations, September 11, Slide 1

3 CAPITAL MARKET DAY 2012 WACKER GROUP Dr Staudigl, CEO: Long Term Value Creation Dr Rauhut, CFO: Balanced Business Portfolio, Robust Financials Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 2

4 WACKER WITH HIGHLY INTEGRATED OPERATIONS 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 Solar modules Electronic wafers Hyperpure silicon wafers semiconductors Ethylene VAE Eng. fabrics, coatings, adhesives, carpet and paper Dispersible Polymer Powders (DPP) Construction 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 Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 3

5 CONTINUOUSLY ADAPTING TO MARKET NEEDS REVIEW 2011/2012 Polysilicon production facilities at Nünchritz come on stream Adapting 150mm silicon wafer capacity to market demand Closing 200mm semiconductor wafer production in Japan Expanding polymer site in China Expanding technical center in Singapore, Korea and Mumbai Winning a prize for outstanding innovation management Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 4

6 GROWTH BY ADVANCED CHEMISTRY Divisional development over five-year period Total sales in billions of euros CAGR sales 6% Siltronic WACKER POLYSILICON WACKER SILICONES WACKER BIOSOLUTIONS WACKER POLYMERS M 2012 Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 5

7 STRONG FOOTHOLD IN THE THREE MAJOR REGIONS Regional development over five-year period External sales in billions of euros Strong market position in Europe 55% of sales of chemical divisions The Americas starts growing again 20% of sales of chemical divisions Further growth in Asia 60% of sales of polysilicon and wafer Germany Other European countries The Americas Asia Other regions Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 6

8 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 Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 7

9 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 Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 8

10 PV MARKET 2012: FURTHER GROWTH EXPECTED Photovoltaic-Volume (GW) ~30-35* ~28* ~18* e *WACKER estimate, based on published reports Market Dynamics 2012e Further growth of global PV markets in 2012 expected USA & Asia with high growth potential Players with competitive advantage continue to outperform their peers Trend towards high efficiency Current & Future Growth Drivers Fast-decreasing PV system prices Improving relative competitiveness versus other Renewables (e.g. wind) and also with conventional power plants (e.g. gas) More countries adding support schemes Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 9

11 INNOVATIONS FOR POLY 11 WILL ALLOW FOR ANOTHER REDUCTION OF ENERGY CONSUMPTION Specific Energy Consumption of WACKER s Solar Polysilicon Process 100% - 36% Innovations: 73% 64% New deposition reactors New conversion reactors New process design Poly 11 Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 10

12 SOLAR PV THRIVES ON FREE TRADE WACKER OPPOSES TRADE BARRIERS Polysilicon imports of 64 kt accounted for 50% of Chinese Polysilicon usage in 2011 Chinese companies with a worldwide module market share of ca. 60 % 3.5 GW MT(Japan, ROW) 20 GW 2.5 GW 2.5 GW Korea 0.1 GW GW module market size in 2011 polysilicon shipments into China 2011 Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 11 China share of module market 2011 Other share of module market 2011 Source: WACKER, Chinese Customs, UBS

13 WACKER SILICONES - STRONG IN THE SILICONES MARKET Contribution to all industries Increasing demand based on growing quality of life in all regions Focus on innovation for Silicones Great potential for substituting other plastics (epoxy, acrylics) Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 12

14 WACKER POLYMERS - NUMBER 1 IN VAE Leading position in the construction industry Contributing to the demand for energy saving technology Expanding in regions and applications Further substitution of C3 to C6 (SA and SBR*) based products with vinyl acetate ethylene (VAE) Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 13 *Styrene acrylics and butadiene

15 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) Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 14

16 WACKER S CHEMICAL PRODUCTS SUPPORTING MEGATRENDS AND SUSTAINABILITY Sustainability Megaforce* Positioning WACKER Emerging Opportunity Energy & Fuel Energy production Energy efficiency Long term growth rate GDP+; New products and markets *Source: KPMG Material resource scarcity Wealth Substitution Upstream integration Integrated operations Food and medicine enrichment Industry and consumer products for lifestyle enhancement Local sourcing; Cost reduction Yield Improvement Innovation and learning; Reputation and brand Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 15

17 SELECTED SOLUTIONS FOR THE FIELD OF ENERGY Production Hyper pure polysilicon for various solar cells TECTOSIL for photovoltaic modules HDK for rotor blades Silicones for oil and gas exploration Transport Silicones in power transmission and distribution Ceramifying silicones in fire safety cables Fluids for transformers Consumption Silicones for LEDs Wafer for chip-based energy management Silicones for electric engines Sealing compounds for power modules Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 16

18 SUBSTITUTING TECHNOLOGIES VAE Oxygen Natural gas (C1, C2) SB Oil (C2, C3, C4, C6) SA Oxygen Oil (C2, C3, C4, C6) Opportunity Styrene acrylics (SA) and butadiene (SB) based on crude oil Price development of gas to the benefit of VAE Long-term evolution with initial successful outcomes Realizing potential Substitution potential at carpet, paper and coating around the world Better fulfillment of economic and ecological criteria Globally more than 1.2 million tons accessible substitution potential Source: WACKER analysis VAE = Vinyl Acetate Ethylene Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 17

19 FOCUS ON TARGET SEGMENTS FOR SUBSTITUTION Carpet secondary backing Simplified illustration carpet structure VAE SB secondary Paper and coating Top Rod Coat Middle Air Knife Coat Base Rod Coat Unbleached Base Sheet Simplified illustration paperboard coating VAE offers lower applied costs Performance of formulated VAE with targeted quality Applications innovation drive success VAE with lower costs in use Security of supply, cost focus and future environmental compliance are key Product innovation drives rapid conversion Source: WACKER analysis Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 18

20 UTILIZING ADVANTAGES OF SILICONE OVER HYDROCARBON CHEMISTRY Substitution 99% Plastics 1% Silicones Expanding the product profile Competitive process technology Locally driven market innovation Bridge technologies as door opener to the crude oil based plastics industry LEDs - substituting epoxy resin Sealing - substituting acrylics TPSE higher quality alternative to EVA TPSE / TECTOSIL Highly transparent thermoplastic copolymers Fast and low-cost processing with already existing equipment Processable as a thermoplastic Given design flexibility Constant mechanical characteristics within a wide temperature range Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 19

21 ESTABLISHING A GLOBAL FOOTPRINT TO SERVE LOCAL MARKETS Nünchritz, DE Ulsan, KR Tennessee, US Nanjing, CN Zhangjiagang, CN Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 20

22 LONG-TERM VALUE CREATION Developing innovative and differentiating product modifications Utilizing strong regional presence Value adding customer support After Poly 11 higher share of downstream investment Recruiting, motivating and retaining high-performing employees Highly efficient production activities Maintaining the highest standards of ethics and legal compliance Production and sales sites, technical competence centers Capital Market Day 2012, Long Term Value Creation Dr. Rudolf Staudigl, CEO, September 11, Slide 21

23 CAPITAL MARKET DAY 2012 WACKER GROUP Dr Staudigl, CEO: Long Term Value Creation Dr Rauhut, CFO: Balanced Business Portfolio, Robust Financials Dr. Joachim Rauhut, CFO, September 11, Slide 22

24 AGENDA Business Portfolio and Current Trading Financial Statements Outlook and Financial Targets Dr. Joachim Rauhut, CFO, September 11, Slide 23

25 H1 2012: GROUP SALES AND EBITDA DECLINE YOY, BUT IMPROVE VS. H Sales ( m) EBITDA ( m) and Margins (%) - 8% - 33% 2,618 2,292 2, % 19% % H H H H H H Dr. Joachim Rauhut, CFO, September 11, Slide 24

26 BALANCED BUSINESS PORTFOLIO CHEMICALS ACCOUNT FOR 57% OF GROUP SALES H Sales* ( m) POLYMERS 495m 20% 18% Siltronic 444m BIOSOLUTIONS 79m 3% 34% Total: 2,417m 23% POLYSILICON 549m SILICONES 817m Dr. Joachim Rauhut, CFO, September 11, Slide 25 * Based on external sales Others

27 Q2 2012: SEQUENTIAL SALES GROWTH IN ALL DIVISIONS EXCEPT POLYSILICON Siltronic Sales Growth ( m) POLYSILICON Sales Growth ( m) Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 SILICONES Sales Growth ( m) POLYMERS Sales Growth ( m) Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Dr. Joachim Rauhut, CFO, September 11, Slide 26

28 H1 2012: YOY RISING VOLUME AND FAVORABLE CURRENCY NEGATIVE PRICE EFFECT MAINLY IN POLYSILICON H vs. H Sales ( m) Sales H ,618 Volume/Mix +67 Price -347 Remarks Price decline mainly in POLYSILICON Price deviation calculated with (higher) volumes of H Currency effect mainly from revaluation of USD Currency +80 Sales H ,417 Dr. Joachim Rauhut, CFO, September 11, Slide 27

29 H1 2012: ASIA AND AMERICAS WITH STABLE SALES EUROPE LOWER YOY Group Sales by Region ( m) Germany -27% Americas Asia/ROW 0% 0% , ,059 H H H Rest of Europe H H H % H H H H H H Dr. Joachim Rauhut, CFO, September 11, Slide 28

30 H1 2012: CHEMICALS WITH GROWTH IN AMERICAS AND ASIA SALES IN EUROPE LOWER Chemicals Sales by Region ( m) Germany -6% Americas Asia/ROW +8% +19% H H H Rest of Europe H H H % H H H H H H Dr. Joachim Rauhut, CFO, September 11, Slide 29

31 H1 2012: SHARE OF CHEMICALS IN GROUP EBITDA RISING SILTRONIC IMPROVED AFTER RESTRUCTURING H EBITDA ( m) H EBITDA ( m) H EBITDA ( m) Total: 676m Total: 428m Total: 452m m (29%) 119m (28%) m (45%) WACKER SILICONES WACKER POLYMERS WACKER BIOSOLUTIONS WACKER POLYSILICON Siltronic Dr. Joachim Rauhut, CFO, September 11, Slide 30

32 Q2 2012: CHEMICAL DIVISIONS WITH PROFIT GROWTH YOY; SILTRONIC POSITIVE AGAIN Siltronic EBITDA ( m) POLYSILICON EBITDA ( m) Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 SILICONES EBITDA ( m) Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 POLYMERS EBITDA ( m) Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Dr. Joachim Rauhut, CFO, September 11, Slide 31

33 SILTRONIC: MARKET SOFTENING IN Q4 EXPECTED POSITIVE COST IMPACT FROM RESTRUCTURING Siltronic Sales* ( m) - 19% Current Trading Volumes: - Q3 flattish market sequentially - Q4 significantly softening Pricing: - Flattish, with some reductions in Q4 Positive contribution from restructuring and cost savings Singapore-JV fully utilized Expect Q3 positive EBITDA H H H Dr. Joachim Rauhut, CFO, September 11, Slide 32 * Does not include sales volumes at-equity from Singapore JV on 300mm (since 2008)

34 POLYSILICON AFFECTED BY ONGOING CONSOLIDATION IN SOLAR INDUSTRY POLYSILICON Sales Growth ( m) - 20% H H H Current Trading PV installations for 2012 above 30 GW expected High level of inventory in supply chain and no strong balance sheets Several of customers in situation of financial stress About 100kt of idle capacities for polysilicon Market pricing in Q3 below Q2 expected Retention of prepayments and damage compensation from contract dissolutions to continue during market consolidation Non-foreseeable impact from possible anti-dumping duties in Europe and China Dr. Joachim Rauhut, CFO, September 11, Slide 33

35 SILICONES WITH SOLID OUTLOOK ON H2 SILICONES Sales ( m) - 1% Current Trading Solid business development in Q3 Positive exchange rate effects mitigate ongoing pricing pressure somewhat Sequential seasonal slowdown in Q4 expected to be similar to previous years Ongoing risks from macroeconomic environment in Europe and China H H H Dr. Joachim Rauhut, CFO, September 11, Slide 34

36 POLYMERS WITH DOUBLE-DIGIT SALES GROWTH; NEW BUSINESS FROM REPLACING COMPETING TECHNOLOGIES POLYMERS Sales Growth ( m) + 12% Current Trading Strong demand for dispersions in North America Substitution of other binder systems continues Continuing good performance of construction segment H H H Dr. Joachim Rauhut, CFO, September 11, Slide 35

37 AGENDA Business Portfolio and Current Trading Financial Statements Outlook and Financial Targets Dr. Joachim Rauhut, CFO, September 11, Slide 36

38 H1 2012: GROSS-MARGIN IMPACTED BY PRICE DECLINE; TAX RATE AT 38% Consolidated Income Statement WACKER Group ( m) YoY YoY in mn H1 H2 H1 absolute in % Sales 2,618 2,292 2, Cost of goods sold -1,857-1,891-1, Gross profit from sales in % 29% 18% 19% Selling expenses Research and development expenses General administrative expenses Other operating income >100 Other operating expenses Operating result Income from investments in joint ventures EBIT Interest result >100 Other financial result Income before taxes Income taxes Net income EBITDA Dr. Joachim Rauhut, CFO, September 11, Slide 37

39 SPECIAL EFFECTS IN RESULT: RETENTION OF PREPAYMENTS AND DAMAGES POSSIBLE IN H Division Special Effects H H H Siltronic Execution "Lead site strategy" WACKER POLYSILICON Retained prepayments & damages Others Pension biometrics Net Effect on EBITDA ( m) Dr. Joachim Rauhut, CFO, September 11, Slide 38

40 STRONGER USD BENEFITS SILTRONIC AND CHEMICALS INVESTMENT POLY 11 COVERED BY USD-INFLOW USD/EURO Development * Net USD Exposure FY 2012 ( m) Siltronic and Chemicals with net USD exposure in 2012 (on EBITDA-basis) Positive impact on EBITDA from current revaluation of USD 50% of net exposure hedged in acc. with Group hedging policy Remaining net exposure: - Recognized in income statement at current exchange rate - Used to finance investment in Poly 11 Impact on FY-EBITDA in 2012: 1 cent change in USD/ exchange rate = ~ 4.5m, unhedged Dr. Joachim Rauhut, CFO, September 11, Slide 39 * Source:

41 RAW MATERIALS: ETHYLENE AT ALL-TIME HIGH IN H1 2012; EXPECT SOME BENEFIT FROM STABILIZING PRICES NOW Ethylene Contract ( /MT) 1,400 Si-Metal Contract ( /MT) 2,700 Raw Materials 2011 ( m) Chemicals 1,200 2,400 Others Si Metal 1, ,100 VAM* Ethylene 600 1,800 Methanol 400 1,500 Source: ICIS, Ethylene Market Price Europe, free delivered Source: Source: CRU-Provider, Si-Metal Contract Price Europe free delivered Costs of top 4 raw materials 26% of chemicals segment sales Dr. Joachim Rauhut, CFO, September 11, Slide 40 * VAM = Vinylacetate monomer

42 PERSONNEL EXPENSES CAREFULLY MANAGED FLEXIBILITY FROM VARIABLE SALARIES AND TEMPS Personnel Expenses as % of Sales Temporary Staff (FTE) 24% 26% * 26% H H H H H H1 * excl. effect from pension biometrics and severance expense for Hikari closure Dr. Joachim Rauhut, CFO, September 11, Slide 41

43 TAX RATE: 38% IN H1; > 40% EXPECTED FOR FY 2012 (IMPACT FROM SEVERAL SPECIAL ITEMS) WACKER Group Tax Rate H H H Income taxes Tax rate (reported) Income before taxes (reported) Special items: 30% 64% 38% Restructuring of Siltronic - Losses in the silicones business in China - Rising pre-operational expenses for Poly 11 Tax rate (w/o special items) < 30% < 30% < 30% Dr. Joachim Rauhut, CFO, September 11, Slide 42

44 BALANCE SHEET: STABLE STRUCTURE - SIGNIFICANT LIQUIDITY Balance Sheet Assets Total 6.5b 6.2b Liabilities Total 6.5b 6.2b Remarks Conservative Accounting: Demanding depreciation policy Almost no deferred tax assets Early recognition of changing demographics in pension accounting Targets for Structure of Balance Sheet: High equity ratio Substantial liquidity Dr. Joachim Rauhut, CFO, September 11, Slide 43

45 FIXED ASSETS INCREASE WITH INVESTMENTS ABOVE DEPRECIATION; HIGH SHARE OF UPSTREAM CAPACITIES CapEx vs. Depreciation Expense ( m) 636 Remarks Fixed assets increase as investments consistently exceed depreciation Investment focus: Capacity expansion in polysilicon Localization of chemicals production assets H H H Depreciation CapEx Dr. Joachim Rauhut, CFO, September 11, Slide 44

46 QUARTERLY FLUCTUATIONS IN INVENTORIES MAINLY DRIVEN BY POLYSILICON; DSO STABLE, NO WRITE-OFFS Inventories ( m) Trade Receivables ( m) DIO DSO Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Increase partly from raw material inflation and build-up of silicon metal inventory Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 DSO stable, only minor write-offs Normalization of polysilicon business will require increase in working capital (e.g., stocking of finished goods to pursue market opportunities) Dr. Joachim Rauhut, CFO, September 11, Slide 45

47 H1 2012: 1.1BN POLYSILICON PREPAYMENTS IN BALANCE SHEET; SOME INFLOW IN H POLYSILICON Prepayments ( m) Remarks Appr. 50 customers with prepayment contracts 1,228 1,176 1,098 LTA s incl. prepayments demonstrate quality of relation with our customers Development of prepayments: Still some inflow 2011 H H H1 Outflow (netting against sales): appr. 200 m per year Dr. Joachim Rauhut, CFO, September 11, Slide 46

48 OVERALL, BALANCE SHEET CONSISTENTLY WITH SOLID STRUCTURE Equity Ratio (%) Current Ratio (factor) 45% 42% 41% H H H1 Net Debt / Equity (%) 2011 H H H1 Net Debt / EBITDA (factor)* 12% % -4% 2011 H H H H H H1 Dr. Joachim Rauhut, CFO, September 11, Slide 47 * EBITDA: TTM

49 AGENDA Business Portfolio and Current Trading Financial Statements Outlook and Financial Targets Dr. Joachim Rauhut, CFO, September 11, Slide 48

50 CAPEX EXCEEDING DEPRECIATION THROUGH 2013, AFTERWARDS AT LEVEL OF DEPRECIATION CapEx vs. Depreciation Expense WACKER Group ( m) 981 ~1,100 ~1, ~540 ~590 conceptional presentation only Ø e 2013e 2014 et seqq. Depreciation CapEx Dr. Joachim Rauhut, CFO, September 11, Slide 49

51 INVESTMENT IN POLY 11 PROGRESSING AS PLANNED SCHEDULE FOR RAMP-UP WITH FLEXIBILITY TO CONSIDER MARKET DEVELOPMENTS Tennessee Site ( Poly 11 ) Current Status Work at site progressing in line with schedule: - Infrastructure almost completed - Equipment has been ordered, installation has started - Piping: engineering ongoing, fabrication has started Ramp-up can be managed with a certain flexibility Currently, start-up expected for Q Specific investment of ~100 USD/kg reflects sizeable investment in site infrastructure beyond polysilicon Dr. Joachim Rauhut, CFO, September 11, Slide 50

52 UNTIL 2012, CAPEX ON AVERAGE FINANCED INTERNALLY (W/O PREPAYMENTS); NEGATIVE NCF EXPECTED IN 2012/13 Net Cash Flow* ( m) Gross cash flow CapEx NCF* conceptional presentation only Ø Ø e 2013e 2014e Dr. Joachim Rauhut, CFO, September 11, Slide 51 * Prepayments not considered

53 FINANCIAL DEBT: INCREASE IN 2012 AND 2013 WITHIN PRUDENT RANGE Development of Financial Indebtedness ( m) conceptional presentation only 1, , ,445 1, Ø H e 2013e 2014e et seqq. Net financial debt Prepayments Total financial indebtedness Dr. Joachim Rauhut, CFO, September 11, Slide 52

54 CONSERVATIVE TARGETS FOR FINANCIAL LEVERAGE SET IN 2011 WILL NOT BE MET IN 2012 AND 2013 Leverage Targets Bank Leverage : Definition: Net Financial Debt Ratio: Bank Leverage / EBITDA Target: < 1.0 x Leverage I: Definition: Net Financial Debt + Prepayments Ratio: Leverage I / EBITDA Target: ~ 1.0 x Leverage II: Definition: Leverage I + Pension Provisions + Net Debt JVs (pro-rata) Ratio: Leverage II / EBITDA Target: < 2.0 x Dr. Joachim Rauhut, CFO, September 11, Slide 53

55 LONG-TERM DEBT FINANCING SECURES FLEXIBILITY AND STRONG LIQUIDITY Debt Financing Measures Measures in 2012 New Schuldscheindarlehen (Promissory Note): Total volume: 300m / Maturity: 3-5 years Development Bank of Japan: Volume: JPY10bn / Maturity: 2017 New syndicated loan: 400m / Maturity: 5 years Further measures under review H1 2012: Liquidity and undrawn credit facilities of > 1.5bn Dr. Joachim Rauhut, CFO, September 11, Slide 54

56 CURRENTLY, CREDIT LINES > 1.5BN EUR AVAILABLE UNTIL END OF 2014 Credit Lines Maturity Profile ( m) 2,500 2,000 1,500 Development Bank of Japan / Others Schuldscheindarlehen China Syndicated Loans EIB loan 1, Net Debt (excl. financial leases) 0 Q2/2012 Q2/2013 Q2/2014 Q2/2015 Q2/2016 Q2/2017 Dr. Joachim Rauhut, CFO, September 11, Slide 55

57 WACC BENEFITS FROM MORE EFFICIENT CAPITAL STRUCTURE; ROCE ADDED IN EXECUTIVE COMPENSATION ROCE and WACC* (%) Remarks ~12.0 WACC expected to further decline due to low interest rates/higher gearing ** e WACC* ROCE ROCE: - Reflecting current high investments in upstream capacities and infrastructure (including substantial assets under construction) - Expected to recover as share of downstream/value-add projects increases again Executive compensation: ROCE as additional KPI included in % based on achievement of annual plan / 50% based on medium-term targets Dr. Joachim Rauhut, CFO, September 11, Slide 56 * before taxes ** based on current consensus for EBIT 2012

58 WACKER A COMPANY WITH A BALANCED BUSINESS PORTFOLIO AND ROBUST FINANCIALS Summary Balanced business portfolio Chemical businesses: appr. 60% of Group sales, intact growth potential, stable profitability, improved cash generation 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 2012/13: Planned increase in financial debt from build-up Tennessee site After 2013, investment significantly lower Dr. Joachim Rauhut, CFO, September 11, Slide 57

59 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 10/24/12 Q3 Results 2012 Capital Market Day 2012 Joerg Hoffmann, Investor Relations, September 11, Slide 58