Wacker Chemie (WCH) Investor presentation summary

Strategic focus and business overview

• Emphasis on growth, cash generation, and cost control, with a comprehensive cost project targeting over €300 million in annual savings and 1,500 job cuts by 2027.

• Four main business segments: Silicones, Polymers, Biosolutions, and Polysilicon, each with distinct strategies and market leadership positions.

• Specialty business expansion, sustainability integration, and digitalization are key pillars for future growth.

• Leading global positions: No. 1 in polysilicon for semiconductors, No. 1 in polymers, No. 2 in silicones, and niche leadership in biosolutions.

• Over 60% of sales generated outside Europe, with a diversified end-market exposure including construction, electronics, healthcare, and energy.

Financial performance and guidance

• FY 2024 sales at €5.7bn, EBITDA €744m (13% margin), and ROCE at 5%; 2025 guidance expects sales at the lower end of €5.5–5.9bn and EBITDA in the lower half of €500–700m.

• Q3 2025 sales declined 6% year-over-year to €1.34bn, EBITDA down 23% to €112m, and net income negative at -€82m due to weak markets and unsatisfactory utilization rates.

• Net debt increased to €1.16bn by September 2025, with liquidity at €781m and equity at €4.42bn.

• Dividend policy targets ~50% payout of net income; €1.4bn paid out over the past five years.

• CapEx for 2025 is substantially lower than prior year, aligning with a focus on financial resilience and flexibility.

Segment highlights

• Silicones: Weak order intake and lower sales/EBITDA in Q3 2025; focus on specialty and sustainable solutions for construction, e-mobility, and electronics.

• Polymers: EBITDA stable year-over-year in Q3 2025; construction demand remains soft, with innovation driving performance in adhesives, paints, and construction materials.

• Biosolutions: Sales and EBITDA impacted by project timing and soft demand; focus remains on advanced medicines and fermentation-based ingredients.

• Polysilicon: Strong semiconductor demand, but solar segment faces uncertainty and lower prices; new etching line investment supports semi market leadership.