WACKER's sales hit another record and will continue to grow in 2022

● In 2021, sales will increase by 32% to 6.
21 billion euros, and earnings before interest, tax, depreciation and amortization (EBITDA) will reach 1.
54 billion euros, more than double the year-on-year

● Full-year profit of 828 million euros

● Significant dividend hike to EUR 8.
00 per share for a total dividend of EUR 397 million

●  WACKER 's total group sales in 2022 is expected to reach around 7 billion euros

● EBITDA is expected to be €1.
2 billion to €1.
5 billion; rising energy and raw material prices are expected to result in loss of profit of around €1 billion

● 2022 net cash flow will again be a big surplus, but significantly lower than the previous year

● Group full-year profit expected to be below the peak set in 2021

March 15, 2022 - As previously announced, Munich-based Wacker Chemie AG will record new sales, profit and net cash flow in 2021
.
In its annual report, the WACKER Group announced that in 2021 it will achieve sales of 6.
21 billion euros (2020: 4.
69 billion euros), a year-on-year increase of 32 percent
.
The increase in sales prices in each business segment and the increase in sales volume across the board were the main reasons for the jump in sales.
The exchange rate fluctuations slightly restrained the increase in sales
.

The WACKER Group achieved EBITDA of EUR 1.
54 billion in fiscal 2021 (2020: EUR 666 million), more than double the previous year
.
The EBITDA margin was 24.
8% (2020: 14.
2%)
.
In addition to the increase in selling prices and the increase in sales volumes, WACKER's ongoing streamlining program has successfully achieved cost savings and has had a positive impact on operating profit growth
.
In contrast, the surge in raw material and energy prices resulted in a loss of around EUR 500 million in EBITDA
.

In the previous fiscal year, the WACKER Group posted a total EBIT of EUR 1.
13 billion (2020: EUR 263 million), representing an EBIT margin of 18.
3 percent (2020: 5.
6 percent)
.
The sharp increase in margins was primarily attributable to higher EBITDA, while depreciation and amortization were largely unchanged
.
Depreciation and amortization totaled EUR 404 million in fiscal 2021 (2020: EUR 404 million)
.
The full-year profit for the reporting period was EUR 828 million (2020: EUR 202 million)
.

WACKER's cash dividend for the year is set to hit an all-time high
.
The Board of Directors and the Supervisory Board proposed to the Annual General Meeting a proposed dividend of EUR 8.
00 per share
.
About 50% of the year's net profit, in line with WACKER's dividend policy
.
Calculated on the basis of shares eligible for dividends as of December 31, 2021, the total cash dividend is 397 million euros; the dividend yield is 6.
0% based on the average share price of WACKER in 2021
.

According to plans, WACKER will accelerate its growth in the next few years, with sales reaching approximately 7 billion euros in fiscal 2022
.
Rising product prices, higher sales volumes in the Chemicals business and product mix effects favouring the various business segments are the main factors supporting this goal
.
In 2022, WACKER Group EBITDA is expected to be 1.
2 billion to 1.
5 billion euros, which is expected to reach the profit level of the previous year
.
Rising energy and raw material prices are expected to result in a loss of profit of around EUR 1 billion, but this cost burden can be largely offset by higher product prices; ongoing WACKER streamlining program saves costs and contributes to profit growth
.
Group net profit is expected to be significantly lower than the previous year
.

In the first two months of the current fiscal year, WACKER's business development continued to be dynamic, with demand across all business segments remaining high, and group sales and EBITDA significantly higher than in the same period of the previous year
.
WACKER expects group sales to reach approximately EUR 2 billion in the first quarter of 2022 (Q1 2021: EUR 1.
36 billion), and Group EBITDA is expected to increase year-on-year at a higher rate than sales; higher product prices and continued demand Higher, all play a role in promoting this
.
In addition, the relatively favorable prices of raw materials purchased by WACKER last year also played a positive role in the performance at the beginning of this year
.

Christian Hartel, President and CEO of WACKER, said in Munich on Tuesday: “Despite the outbreak of the conflict in Ukraine and the unresolved epidemic, we remain confident in the development of WACKER’s business in fiscal 2022.

We expect this year The chemical business is doing well, product prices continue to rise, sales volumes continue to increase and product mix effects are favorable
.
In the polysilicon business, product prices are expected to increase and product mix effects are better
.
”

When talking about the situation in Eastern Europe, Heda expressed concern and concern.
He said: "We express our deep concern and condolences to those who have suffered from the war in Ukraine
.
" He said that what kind of political and The economic consequences are currently difficult to predict reliably, but in terms of sales, the immediate impact is limited
.
"The combined sales of the CIS countries account for less than 2 percent of WACKER's total sales," he said
.
However, he also said that the current sharp rise in gas and electricity prices is worrying
.

Capital expenditures

WACKER’s total capital expenditure in fiscal 2021 was 344 million euros (2020: 224 million euros), an increase of 53 percent year-on-year
.

Expanding the capacity of the chemical business unit remained one of last year's investment priorities
.
WACKER is currently building an emulsion reactor and a spray dryer for the production of dispersible polymer powders in Nanjing, China.
The emulsion reactor is scheduled to start production in the second half of this year, and the spray dryer is scheduled for 2023
.

At its production site in Amsterdam, the Netherlands, WACKER invested in the expansion of vaccine production capacity and the construction of a biologics production facility
.
In addition, WACKER has invested in a number of small and medium-sized projects for intermediate and final products, and renovated the infrastructure at the Burghausen and Nünchritz production sites
.

Staff

The WACKER Group added 123 employees in fiscal 2021.
As of December 31, 2021, WACKER had 14,406 employees worldwide (December 31, 2020: 14,283), including 10,006 in Germany (2020: 10,096).
), 4,400 overseas employees (2020: 4,187)
.

Net Cash Flow, Net Financial Debt and Shareholders' Equity Ratio

WACKER's net cash flow in 2021 totaled EUR 761 million (2020: EUR 698 million), an increase of 9 percent on the previous year's high level
.
The increase in net cash flow was mainly due to the high cash inflow from operating businesses
.
Payments to trust companies to partially fund pension commitments reduced recognized net cash flows by EUR 250 million
.
This amount, which concerns employee benefits in addition to the basic pension in the WACKER pension fund, is included in the WACKER statement of financial position as a plan asset and therefore reduces the retirement reserve by the same amount, which also increases due to the discount rate , totalling EUR 1.
81 billion at the end of 2021 (31 December 2020: EUR 2.
71 billion)
.
"The benefits from this additional plan asset will reduce the burden on pension commitments going forward, and will have a positive impact on the key metrics and cash flow in the statement of financial position," stressed He Da, President and Chief Executive Officer
.

The high cash inflow from operating business also has the effect of enhancing net financial assets
.
At the end of December 31, 2021, WACKER had net financial assets of EUR 547 million (December 31, 2020: net financial liabilities of EUR 68 million)
.

As of December 31, 2021, the total assets of the WACKER Group amounted to 8.
13 billion euros (December 31, 2020: 6.
95 billion euros), a year-on-year increase of 17 percent
.
Liquidity is one of the biggest changes
.
At the end of the reporting period in fiscal 2021, WACKER’s liquid assets totalled EUR 1.
98 billion (December 31, 2020: EUR 1.
34 billion)
.
High cash inflows from operating operations and advances received for undelivered goods from the polysilicon business were the main contributors to the increase in current assets
.
In terms of liabilities and shareholders' equity, WACKER Group's shareholders' equity increased significantly, reaching EUR 3.
10 billion at the end of the previous reporting period (December 31, 2020: EUR 1.
69 billion), representing a shareholders' equity ratio of 38% (December 2020).
31: 24%)
.

business unit

Sales at WACKER SILICONES rose by 16 percent to EUR 2.
60 billion in fiscal 2021 (2020: EUR 2.
24 billion), driven by higher product prices, higher volumes and product mix effects
.
EBITDA increased even more significantly, up 43% to EUR 553 million (2020: EUR 388 million), driven by price and volume factors
.

WACKER POLYMERS' sales rose significantly in 2021 to EUR 1.
67 billion (2020: EUR 1.
30 billion), a year-on-year increase of 29 percent
.
Product prices have risen sharply, with increased sales and product mix effects playing an important role
.
EBITDA was EUR 253 million (2020: EUR 271 million), down 7% year-on-year
.
The business unit has nearly balanced the pressure from the surge in raw material prices by raising prices and increasing sales volumes
.

WACKER Biotechnology's 2021 sales rose by 20 percent to EUR 296 million (2020: EUR 246 million), mainly due to higher prices and higher volumes of biologics products and cyclodextrins
.
EBITDA achieved EUR 39 million (2020: EUR 38 million), a slight increase year-on-year, but was impacted by integration costs at the new production site in San Diego, USA
.

WACKER POLYSILICON nearly doubled its sales in fiscal 2021 to EUR 1.
53 billion (2020: EUR 792 million), an increase of 93 percent
.
Product prices have risen sharply, especially for polysilicon for solar cells, and increased sales have contributed to this
.
In contrast, the increase in EBITDA was even more pronounced, amounting to EUR 657 million (2020: EUR 5 million), a multiple-fold increase
.
The increase in profit was mainly due to significantly higher product prices and higher sales volumes (especially for materials used in semiconductors), as well as the business unit's further success in optimizing production costs
.

Foresight

WACKER is determined to accelerate growth in the coming years and is taking a series of measures to this end
.

He Da, President and CEO, said: "WACKER announced its ambitious sustainable development goals at the end of last year, which sounded the first clarion call for our future journey forward
.
" He introduced that WACKER's sustainable development work revolves around Two key points are unfolding: “On the one hand, we will significantly reduce our ecological footprint and aim to halve absolute greenhouse gas emissions by 2030; attractive business prospects
.
”

With its products and applications, WACKER offers customers a wide variety of solutions that can help achieve their sustainability goals, he said
.
In particular, he noted that two-thirds of WACKER's entire product portfolio is now contributing to this value driver
.

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