Wacker Chemie (WCH) Investor presentation summary

Group overview and strategy

• Achieved €6.4bn in sales and €824m EBITDA in 2023, with a 13% EBITDA margin and 16,378 employees across 27 production sites and 22 technical centers.

• Holds market-leading positions: #1 in polysilicon for semiconductors, #1 in polymers, #2 in silicones, and leading in biosolutions niches.

• Diversified end markets include construction, healthcare, energy, electronics, and consumer goods.

• Strategy focuses on margin and profitable growth, specialty innovation, and sustainability, targeting >€10bn sales and >20% EBITDA margin by 2030.

• Committed to net zero by 2045 and a 50% reduction in CO2 emissions by 2030.

Financial performance and capital allocation

• Sales have grown 2.5x since IPO, with a 5% CAGR; EBITDA peaked in 2022 but declined in 2023 due to weak markets.

• Maintains strong cash flow, investing in growth and dividends, with net financial debt reduced from €701m in 2013 to €84m in 2023.

• Dividend policy targets ~50% payout of net income; total payout 2021-2023 was ~€1.1bn.

• Capital allocation prioritizes growth (CapEx > depreciation), earnings-accretive M&A, and financial resilience with net debt ~1x EBITDA.

• 2023 group sales: €6.4bn, EBITDA: €824m, net income: €327m, with a 6.9% ROCE.

Business segments

• Silicones: 85% of sales from specialties, focusing on high-margin, innovative, and sustainable solutions for construction, healthcare, electronics, and automotive.

• Polymers: Global leader in VAE/DPP capacity, driving growth through sustainability, construction transformation, and customer proximity.

• Biosolutions: Fast-growing biotech business with leading microbial manufacturing, strong CDMO presence in advanced medicines, and recent ADL Biopharma acquisition.

• Polysilicon: #1 in semiconductor-grade polysilicon, expanding capacity for high-end applications, and supporting solar PV growth with low-carbon products.