Roadshow Presentation - Full Year 2012

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Roadshow Presentation - Full Year 2012
PRESENTATION - FULL YEAR 2012
Investor Relations, April 2013
CREATING TOMORROW'S SOLUTIONS
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 forwardlooking 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.
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 1
OUR BUSINESS PORTFOLIO –
A FOUNDATION FOR GROWTH
Siltronic
BIOSOLUTIONS
POLYMERS
• Strong no. 3
• High potential for
future development
• No. 1 in dispersible polymer
powders
• Technology leader
• No. 1 in VAE dispersions
• Balanced base of customers
• Global footprint
3%
21%
19%
FY 2012
Sales
€4.6bn
POLYSILICON
SILICONES
• Strong no. 3
21%
• Cost and quality leader
• Strong no. 2 in capacity
• Commodity base &
specialty strength
• Impeccable growth record
• High focus on China / Asia
35%
Innovation & Engineering
Others/Consolidation
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 2
Note: percentages based on external sales per segment
WACKER - HIGHLY INTEGRATED OPERATIONS BASED ON
FIVE KEY RAW MATERIALS
Raw Material
Methanol
Silicon Metal
Upstream
Downstream
Siloxane
Silicones
Pyrogenic Silica
Construction
Automotive suppliers
Paints and coatings
Textiles, print and paper
Personal care
Solar modules
Polysilicon
Electronic wafers
Ethylene
Customers’ Industries
Hyperpure silicon wafers
semiconductors
Eng. fabrics, coatings, adhesives,
carpet and paper
VAE
Dispersible Polymer
Powders (DPP)
Acetic Acid
VAM
PVAc
Starch/Dextrose
Microb. fermentation
Therapeutic proteins
food ingredients
Construction (Tile Adhesives,
Dry Mortars, ETICS)
Automotive, food
Food, life sciences, household
VAM = Vinyl acetate monomer. VAE = Vinyl acetate ethylene, PVAc = Polyvinyl acetate, ETICS = External Thermal Insulation Composite Systems
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 3
GROUP SALES DECREASE BY 6% VS. 2011, CHEMICALS WITH
5% GROWTH, SILTRONIC AND POLYSILICON BELOW 2011
Sales WACKER Group (€m)
-13%
+28%
4,910
4,748
4,298
1,025
3,719 +61%
1,361
-53%
828
992
-3%
638
1,369
+35% 1,121
+22%
-6%
+3%
+6%
4,635
-13% 868
1,448
-22%
1,136
SILTRONIC
2,374
2,088
-12%
2,533
+21%
2,666
+5%
+5%
2,809
POLYSILICON
CHEMICALS
Others / Cons.
-265
2008
-178
-127
2009
2010
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 4
-197
2011
-177
2012
2012: PRICE DECLINES IN POLY AND STRONG
PERFORMANCE IN CHEMICALS
€m
FY 2012 FY 2011 % YoY
Sales
4,634.9
EBITDA
EBITDA margin
4,909.7
-5.6
786.8
1,104.2
-28.7
17.0%
22.5%
-
EBIT
258.0
603.2
-57.2
EBIT margin
5.6%
12.3%
-
Result for the
period
106.8
356.1
-70.0
2.27
7.10
-68.0
EPS in €
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 5
Effects on Sales:
●
●
Volume/Mix +€270m (+5.5%)
●
Price
-€703m, (-14.3%)
●
Currency
+€158m (+3.2%)
●
Strong price declines in
POLYSILICON and Siltronic
●
Refinancing of Chinese JV
supports Silicones operations
SALES AND RESULTS 2012 BELOW PREVIOUS YEAR BIGGEST IMPACT FROM PRICE DECREASES (€703M)
Key Messages for the Year 2012
• Group sales declined by 5.6% to €4.6bn – Chemicals Divisions growing, Siltronic
and POLYSILICON below previous year.
• BIOSOLUTIONS and POLYMERS with biggest growth (9% and 8%), SILICONES
achieved moderate growth of 3%.
• Siltronic sales below previous year during the first three quarters. Q4 was on prior
year level. EBITDA was break-even despite significant price declines and
restructuring costs.
• POLYSILICON volume increased by ~20% but sales dropped by €300m due to price
declines. EBITDA-Margin reduced to 38% (52% 2011), result includes retained
prepayments and damages of €113m.
• Group EBITDA at €787m (margin 17%)
• Group Net Income €107m, €249m below previous year
• Capital expenditures (€1,095m) more than €100m higher than 2011.
• Net Cashflow €-536m (w/o prepayments), Net Debt €701m
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 6
CHEMICALS WITH 15% SALES AND 5% EBITDA GROWTH
EBITDA (€m)/EBITDA Margin (%)
120,0
112
106
91
• Positive Volume and FX-effects
€361m
€315m
100,0
Comments 2012
94
30%
113
92
80,0
60,0
20%
16%
15%
13%
40,0
14%
15%
14%
44
10%
• Strong sales growth for VAE
dispersions in North America
7%
20,0
4%
0,0
0%
Q2
Q3
2011
EBITDA
Q4
Q1
• Q4 2012 above Q4 level of 2011
(seasonal)
• Ramp of Siloxane-JV and fumed silica
capacities in China
25
Q1
• Negative Price-effects
Q2
Q3
2012
EBITDA-Margin
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 7
Q4
SOLID VOLUME DEVELOPMENT IN SILICONES
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 8
●
Pricing pressure
●
Higher Volumes
●
Positive FX effect
●
Utilization rate at the same level
as 2011
●
Raw Material in total remained
on the high level of 2011, silicon
metal price is easing
●
Chinese Siloxane JV refinanced
to improve local competitiveness
SILICONES ARE CHARACTERIZED BY A UNIQUE RANGE OF
PROPERTIES ADDRESSING MANY INDUSTRIES
Market by Industry and Product Type
Selected Properties of Silicones
Market 2011: €9.3bn
7%
5%
6%
10%
Other
5%
OFS
10%
Paper
Textile
11%
Plastics
hydrophobic
hydrophilic
adhesive
release
Resins
40%
12%
Energy/Electronics
13%
16%
Elastomers
Automotive
Health & Wellness
45%
Oils
Chem. Industry
20%
Construction
Sources: WACKER estimates; OFS: Organofunctional Silanes
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 9
conductive
isolating
STRONG PERFORMANCE IN CONSTRUCTION AND
SUBSTITUTION MATERIALS
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 10
●
About 8% growth in sales yoy from
volumes and product mix
●
Sales exceed €1bn for the first
time
●
Raw material costs on level of
2011
RAW MATERIAL DYNAMICS TOGETHER WITH CONTINUOUS
INNOVATION PROVIDE OPPORTUNITIES FOR VAE
Vinyl Acrylics
VAE
SB
Oxygen
Natural gas
(C1, C2)
Styrene-butadiene
(Latex)
PVAc-Homopolymers
PVA-Copolymers
Oil (C2, C3, C4, C6)
VAE*
Opportunity
SA Oxygen Oil (C2, C3, C4, C6)
• 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
VAE = Vinyl Acetate Ethylene
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 11
Pure Acrylics
Styrene Acrylics
Source: WACKER analysis
HIGHER VOLUMES AND POSITIVE FX EFFECTS SUPPORTED
SALES 2012
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 12
●
Volume growth in 2012
●
Expanding capacities for chewing
gum base
●
All activities with growth
BIOTECHNOLOGY USED IN THE GROWING FOOD INDUSTRY
Cyclodextrines
Cysteine
Chewing gum
Dough additive
Healthya®:
Vitamin & Catechin water,
Catechin-rich green tea
Natural flavors
Following the new
“functional chewing
gum” trend, thus
accommodating
customer needs, e.g.:
Teeth whitening
Staying awake
Dietary Supplements
CoQ10-γ-CD complex
Pharmaceuticals
Fluimucil (N-acetyl, cysteine)
*Trade name of KAO Corporation
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 13
Providing energy
POLYSILICON PRICES HALVED IN 2012
EBITDA (€m)/EBITDA Margin (%)
Comments 2012
• 20% higher shipments in 2012
€427m
€747m
• Large negative price effects vs. 2011
100%
215
90%
188
179
• Prepaid contracts with temporary
80%
adjustments to prices and volumes to
70% address current market situation
165
150
52%
47%
• Includes €113m retained prepayments
50% and damages from cancelled contracts
60%
64%
120
47%
41%
42%
79
29%
78
37%
40%
30%
20%
10%
0%
Q1
Q2
Q3
Q4
2011
Q1
Q2
Q3
2012
EBITDA
EBITDA-Margin
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 14
Q4
EVEN COST PARITY WITH GAS FIRED PLANTS IS REACHED
PV System Price* Development (€/Wp) and LCOE** (€/kWh, 30 year lifetime)
*average price during calendar year; ground-mounted systems
**Levelized Cost of Electricity
0.35
0,35
2,50
2.50
Germany
0.5 €/Wp
BOS
Module
1.0 €/Wp
1.0 €/Wp reached in
Germany & China!
0.30
0,30
2,00
2.00
1.5 €/Wp
Wind Offshore
0.25
0,25
Wind Onshore
Germany
1.50
1,50
0.20
0,20
Japan
China
Italy
0.15
0,15
1.00
1,00
Gas
California
0.10
0,10
0.50
0,50
0.05
0,05
0.00
0,00
0.00
0,00
2010
2011
2012
2013e
Sources: market surveys, industry announcements, WACKER estimates
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 15
500
750 1000 1250 1500 1750 2000 2250 2500
Irradiation in kWh/kWp
DECLINING SYSTEM PRICES ENABLE FAST DECLINE OF
LEVELIZED COST OF ELECTRICITY
Average power price per households, €/kWh
Consumer Grid Parity Analysis per Country
0.35
Size of electricity
market (TWh/year)
0.30
LCOE @ system
price (€/W)
0.25
0.20
0.15
3.0
0.10
2.0
0.05
1.0
0.00
Annual solar energy yield, kWh/kWp
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 16
1.0 €/Wp
reached in
Germany &
China!
Source: GB-P analysis
STILL BIG REGIONAL DIFFERENCE IN RESIDENTIAL PV
SYSTEM PRICE
Residential PV System Prices by Region
USD/Wp
8.00
7.00
6.00
5.00
4.00
Japan Residential ASP
3.00
US Residential ASP
2.00
US Residential Best in Class
1.00
German Roof-top ASP
China Roof-top 2 MW
0.00
2011Q1
2011Q2
2011Q3
2011Q4
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 17
2012Q1 2012Q2
2012Q3
2012Q4
Sources: US Prices: SEIA / Greentech Media US Solar Insights
Japan Prices: New Energy Promotion Council & WACKER estimate
Germany Prices: EuPD & WACKER estimate
China Prices: Solarbuzz
2012 RECORD AMOUNT OF NEW PV INSTALLATIONS FURTHER GROWTH IN 2013 EXPECTED
New PV Installations by Region (GWp)
35-40
Growth Drivers
• Lower PV system price
32
• More countries adding
incentives
28
• Increasing competitiveness
18
Europe
Japan
USA
China
India
ROW
2010
2011
2012
Source: EPIA; WACKER analysis
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 18
2013e
Challenges
• Potential trade war escalation
between EU and China
• Adjustments of incentive
structures for feed-in-tariffs
DECLINING PRICES OPEN UP NEW PV MARKETS –
USA AND ASIA WITH HIGH GROWTH POTENTIAL
Country
France
Germany
Italy
Rest of Europe
Australia
China
India
Japan
USA
Rest of World
TOTAL
2010
700
7,400
4,000
2,600
400
700
150
1,000
900
500
~18 GW
New Installations (MW)
2011
2012e
1,700
1,200 - 1,300
7,500
7,600
7,400
4,200 - 4,400
3,300
3,600 - 4,400
800
1,000 - 1,100
2,500
4,000 - 5,500
400
700 - 1,000
1,300
2,200 - 2,500
1,900
3,000 - 3,700
1,300
2,800 - 3,500
28 GW
Sources: EPIA 05/2010 and 02/2012, industry news, WACKER estimate
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 19
2013e
1,500 - 1,800
3,800 - 4,500
1,800 - 2,200
4,200 - 4,800
1,300 - 1,400
8,000 - 9,300
1,700 - 2,000
3,700 - 4,200
5,200 - 6,000
3,800 - 4,200
CAGR
'10-'13
20-30%
-15 / -10%
-20 / -15%
15-20%
35-40%
85-90%
80-90%
40-45%
55-60%
65-70%
~30 - 35 GW ~35 - 40 GW 20-25%
SOLAR PV MARKET IS EXPECTED TO DOUBLE BY 2016
Development of Global PV Installations (GW)
70
60 GW require
~330kt* of polysilicon
60
50
40
30
WACKER Forecast (02/2013)
20
Bank Sarasin (12/2012)
IHS iSuppli (01/2013)
10
EPIA "average" (05/2012)
0
2011
2012e
2013e
2014e
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 20
2015e
2016e
2017e
* assuming 10% thin-film share, 5.5 g/Wp
and 32kt for semiconductor
POLYSILICON MARKET DECREASED IN 2012 –
12% GROWTH EXPECTED UNTIL 2016
Global Polysilicon Shipments [kt]
330
280
250
223
230
~210
• Total shipments slightly
decreased in 2012, due to
inventory correction in Solar
and reduced silicon
consumption per Watt.
• Electronic demand was flat in
2012 – industry expectations of
slight demand recovery in
H2/2013.
162
92
Solar
Electronic
2009
2010
Assumptions:
2011
2012*
2013e
2014e
2015e
2016e
2013: 37.5 GW; 2014: 42 GW; 2015: 50 GW; 2016: 60 GW (incl. 10% thin-film share)
Silicon Consumption decreasing from 6.1 g/Wp in 2013 to 5.5 g/Wp in 2016
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 21
* 2012 based on preliminary figures
STRONG GROWTH EXPECTED IN USA AND ASIA;
NEW MARKETS IN LATIN AMERICA DEVELOPING
USA
• 1,992 MW installed in Q1-Q3 (+82% yoy); strong growth in all segments
• 2.8 GW of utility-scale projects under construction – as of February 11th
• Further 21 GW under development
China
• Nation-wide FiT* + special roof-top program supporting all segments
• Chinese players estimate installations ~5 GW in 2012 and ~10 GW in 2013
• Government increased PV target to 40 GW by 2015
Japan
• ~2.5 GW installed in 2012 (+31% yoy)
• Public opinion after Fukushima disaster supports renewable energy
• Generous FiT triggers strong demand in Q1; still attractive IRRs after FiT cut
by end of Q1
Latin
America
• Argentina strong political support via FiT and net-metering led to 11 utilityscale project announcements up to 5-100 MW each
• Brazil’s national electricity regulator received applications for ~1 GW of PV
• Chile’s PV project pipeline reached 3.1 GW by the end of 2012
*FiT = Feed-in-Tariff
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 22
AD-TARIFF FOR POLYSILICON IMPORTS TO CHINA AS
POTENTIAL REACTION ON US TARIFFS ON CN MODULES
Timeline Anti-Dumping US - EU - China
• May 2012 US DoC condemns Chinese cell producers to anti dumping tariffs of
approx. 35% in some cases even higher; industry draws aside in
advance
• Jul 2012 China investigates US and Korean solar materials imports
• Aug 2012 China initiates European polysilicon imports investigation
• Sep 2012 EU starts investigations on potential dumping of Chinese cell producers
(„single most important AD-complaint in history“ according to EU
commission)
• Oct 2012 Final decision on US-tariffs for Chinese cells/modules: ~ 35% tariffs for
most module producers confirmed. thin film not affected
• Feb 2013 MOFCOM decision on potential polysilicon tariffs remains open
• Jun 2013 June 9th latest date for disclosure of findings by EU authorities
Source: Local customs authorities; WACKER analysis
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 23
GROWING WITH THE MARKET - RAMP OF POLY 11 PLANT
IN TENNESSEE EXPECTED MID 2015
Polysilicon Shipments and Year-End Capacities (kt)
Year-End nameplate
Capacities
52
72
2012
2015e
38
30
32
18
11
6
2006
8
2007
2008
2009
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 24
2010
2011
2012
POLY EXPANSION TENNESSEE (POLY 11) ON TRACK –
PLANT CAPACITY OF 20 KT P.A. AFTER OPTIMIZATION
Tennessee
Milestones
Oct. 2011
• 01/2011-06/2011 site development
• 06/2011 start of construction work
• 06/2012 start of assembly work
• 2015 ramp up poly production –
timing was rescheduled and is flexible
depending on market conditions
Feb. 2013
• Full capacity increases to 20kt due to
plant layout optimization and process
upgrades.
• About $2bn total investment
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 25
SILTRONIC EBITDA IMPACTED BY RESTRUCTURING COST –
BREAK EVEN IN 2012 - FULL BENEFIT IN 2013 EXPECTED
Lead-Site-Strategy/Profitability Focus
EBITDA (€m)/EBITDA Margin (%)
2011:
€49m
37
13%
Q1
37
€1m
- €50m restructuring in Q4 2011
- Headcount reduction approx. 500
34
14%
Q2
Q3
- Expected savings €30m p.a.
13
13%
Q4
Q1
2011
10
5%
4%
Q2
Q3
-13%
- Closure of 200mm at Hikari
4 2%
2012:
Q4
- SD-Consolidation
- €15m restructuring in Q1 2012
- Expected savings €30m p.a.
2012
-26
Proforma Consolidation of Singapore JV*
-33%
Sales
-59
EBITDA
EBITDA-Margin
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 26
€1,030m
EBITDA €114m (11% EBITDA margin)
*Assumes full consolidation of the Joint Venture excluding restructuring.
The 50:50 JV is currently acounted for at-equity, with a dilutive effect in
2012 on reported Siltronic EBITDA.
GROWTH OF MOBILE DEVICES IN 2012 OFFSETS
DECLINE IN OTHER SEGMENTS
Wafer Demand (million inch²)
Development vs. 2011 (0% on average)
-9%
PC, Notebook
Mobile phone
Blue ray, Video, Stereo
Industrial
Automotive
Printer, Router
Digital camera
Telephones
LCD TV
Media Tablets
Switches, Hubs…
Solid-State-Drives*
Personal Media Players
Game Consoles
DRAM Upgrade Modules
USB Flash Drives
PC Monitors
E-book Readers
19%
1%
2%
4%
-4%
-20%
-15%
7%
35%
0%
72%
-21%
1%
-13%
-8%
-17%
-20%
0
500
1,000 1,500 2,000
Source: IHS
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 27
-40
-20
0
20
40
60
80
IN EVERY ELECTRONIC PRODUCT THERE IS MEMORY,
LOGIC AND POWER MANAGEMENT
Si Consumption Share by Chip-Type and Chip-Types per Electronic Product
PC
Memory
Logic
Power
Automotive
• DRAM
• DRAM
• NAND
• DRAM
• NAND
• Processor
• Graphic chip
• LCD driver
• Processor
• LCD driver
• 10-30 processors
~40%
~40%
Tablet
~20%
Source: WACKER analysis; CC-by fotopedia.com/items/flickr-2037438708
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 28
• LCD driver
Power Management
300MM AND 200MM ABOVE 2011 LEVELS; 200MM BENEFITS
FROM SMALLER DIAMETERS SHIFT
Wafer Market by Diameter (million cm²)
Source: SEMI; SD = Small Diameter
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 29
HIKARI CLOSURE (200MM) AND SD CONSOLIDATION
SUCCESSFULLY EXECUTED
2009:
Lead
Site Strategy
Siltronic
Production
Sites
• SSW as 300mm lead site
Hikari
Freiberg
Portland
Burghausen
• <300mm:
• SD Freiberg closed
2009
Singapore
SSW
• 200mm Hikari closed
2012
• SD Portland closed
2012
• SD Burghausen with
ongoing capacity
adjustment
SD in mn cm² / month
200mm in Kilowafer / month
300mm in Kilowafer / month
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 30
• Number of employees at
the end of the year
• 2011: 4,974
• 2012: 3,978
SD = Small Diameter
SSW = Siltronic Samsung Wafer Pte. Ltd.
FOCUS AREAS OF OUR INVESTMENT PROGRAM –
GLOBALIZING OUR PRODUCTION FOOTPRINT
Investment Focus Areas 2007-2012
Burghausen, Germany
Nünchritz, Germany
Charleston,TN, USA
Singapore, Singapore
Nanjing, China
Zhangjiagang, China
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 31
EXPANDING POLYSILICON CAPACITY
POLY 11:
Production hall in Charleston, TN
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 32
POLY 9:
Polysilicon deposition in Nünchritz, GER
POLYMERS DOUBLES PRODUCTION CAPACITY IN ASIA
Polymers Site in Nanjing (China)
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 33
Production of Dispersions
in Ulsan (South Korea)
CAPITAL EXPENDITURES 2012 €1.1BN –
MAIN DRIVER IS POLYSILICON
Capital Expenditures WACKER Group (net, €m)
1,095
1,088
981
200
128
740
410
103
73
695
76
698
567
400
SILTRONIC
310
POLYSILICON
*
370*
155
194
146
109
112
116
141
2008
2009
2010
2011
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 34
237
57
2012
CHEMICALS
INFRASTRUKTUR
* incl. Acquisition of APP
REDUCING CAPEX GOING FORWARD – LESS CAPITAL
INTENSIVE DOWNSTREAM PROJECTS
CapEx vs. Depreciation Expense (€m)
2010/2012:
● Fixed assets increase as investments
consistently exceed depreciation
● Investment focus:
● Capacity expansion in polysilicon
● Localization of chemicals
production assets
1,095
981
695
430
2010
501
Remarks
529
2013 and 2014:
● Investment of ~€600m each year,
thereof ~$300m for Poly 11 in both
years.
2011
Depreciation
2012e
CapEx
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 35
2013e
After capital intensive Upstream
investments the focus now shifts to
less capital intensive Downstream
projects for the Chemicals business.
NET DEBT RISING AS PLANNED – FIRM CAPEX AND
WORKING CAPITAL CONTROLS IN PLACE
Balance Sheet (%)
Assets
Liabilities
Characteristics 12/31/12
• Noncurrent assets: €4,373m
Total
Total
€6.3bn €6.2bn €6.3bn €6.2bn
8%
14%
19%
24%
• Securities, cash and cash equivalents:
€497m
12%
• Provisions for pensions: €569m
18%
25%
• Net financial liabilities: €701m
14%
• Equity: €2,618m
Securities,
Cash & Cash E.
68%
17%
19%
9%
8%
Financial
Debt
Accruals &
Liabilities
61%
Current
Assets
• Prepayments received per 12/31/12:
€1,048m
41%
42%
Prepayments
Pension
Accruals
Noncurrent
Assets
Equity
12/31/12 11/31/12
12/31/12 11/31/12
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 36
• €300m Promissory notes (German
Schuldschein) issued in Feb, 2012
• Capex: €1,095m
IAS 19 EFFECTS ON BALANCE SHEET – PREVIOUSLY
UNREALIZED ACTUARIAL LOSSES/GAINS IN OCI
WACKER Pension Provisions (€m)
12/12/31 Current
2,738
•
•
1,503
677
11
DBO*
Effect of new IAS 19 standard
569
Plan Actuarial Others Pension
Assets Profits /
Provisions
Losses
Alignment of IFRS practices with US GAAP
Cancellation of corridor methodology will
impact equity and results in quarterly
changes to Other Comprehensive Income in
Equity going forward
€m, per
12/12/31
Current
Under New
IAS 19
Equity
2,618
2,128
Total equity and
liabilities
6,330
6,520
Equity Ratio
41.4%
32.6%
*DBO: Defined Benefit Obligation
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 37
OUTLOOK 2013:
FY SALES ON 2012 LEVEL, FY EBITDA BELOW 2012 LEVEL
Key Assumptions for 2013
Group:
- Guidance assumes polysilicon prices at the level of Q4 2012.
- Uncertainties from Anti-Dumping procedures
Chemicals:
- All segments with positive outlook and solid trend
Siltronic:
- Recovery through the year, but prices on average below previous year
- Cost roadmap for 300mm established
POLYSILICON: - ASPs stabilized in Q1 2013, some positive price signals, still overcapacities
- Expect global installations to grow between 35 and 40 GW
- Aggressive cost roadmap in implementation
Investments:
- Below €600m, close to depreciation level
Net Cash Flow: - Significantly less negative than 2012,
- Net financial debt increasing, target less than €1.0bn
FX
- Assumed ø annual exchange rate of $/€ at 1.35
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 38
WACKER:
ISSUER, CONTACT AND ADDITIONAL INFORMATION
Issuer and Contact
Additional Information
Wacker Chemie AG
Hanns-Seidel-Platz 4
D-81737 Munich
ISIN:
DE000WCH8881
WKN:
WCH888
Investor Relations contacts
Mr. Joerg Hoffmann
Tel. +49 89 6279 1633
[email protected]
Deutsche Börse:
WCH
Ticker Bloomberg:
CHM/WCH:GR
Mrs. Judith Distelrath
Tel. +49 89 6279 1560
[email protected]
Ticker Reuters:
CHE/WCHG.DE
Listing:
Frankfurt Stock
Exchange
Prime Standard
Mrs. Manuela Ellmerer
Tel. +49 89 6279 2769
[email protected]
Financial Calendar
04/30/13 – Q1 Results 2013
05/08/13 – Annual Shareholders’ Meeting
06/24/13 – Capital Markets Day, London (NEW)
07/30/13 – Q2 Results 2013
10/31/13 – Q3 Results 2013
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 39
SPECIAL EFFECTS ON EBITDA IN FY 2012E
Division (€m)
Special Effects
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Total
Siltronic
Execution "Lead site strategy"
-14.8
-
-
-
-14.8
WACKER POLYSILICON
Retained prepayments & damages
from cancelled contracts
36.6
19.4
2.1
55.0
113.1
21.8
19.4
2.1
55.0
98.3
Net Effect on EBITDA
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 40
Q4 BETTER THAN PREVIOUS YEAR, BUT FY BEHIND 2011
DUE TO PRICE DECLINES IN POLYSILICON AND SILTRONIC
* Group Sales and EBITDA incl. Others and Consolidation
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 41
DIVERSIFIED END MARKET PORTFOLIO
Market Structure by Application Segment
Textile
Automotive
6%
4%
5%
5%
4%
Adhesives
Energy/Electronics
16%
Others
WACKER 2012
Chemical Industries
22%
Total Sales by
Construct./Renovat.
Industries
22%
Semiconductors
Solar
17%
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 42
WACKER GLOBALIZES FAST AS GROWTH CONTINUES IN
ASIA
FY 2012 Sales by Region, Changes YoY (%)
Germany -24%
Europe w/o Germany -8%
15%
24%
Total:
€4,634.9m
18%
Americas -1%
-9% in USD1)
44%
Asia &
other Regions +2%
1)
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 43
Adjusted currency
RAW MATERIALS: SLIGHT RELIEF EXPECTED IN 2013
Ethylene Contract (€/MT)
Si-Metal Contract (€/MT)
2,700
1,400
Raw Materials 2012 (€m)
Chemicals
1,200
2,400
1,000
Si Metal
Others
Ethylene
2,100
800
VAM*
1,800
Methanol
600
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 21% of
chemicals segment sales
*VAM = Vinylacetate monomer
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 44
1 CENT CHANGE IN USD/€ EXCHANGE RATE HAD AN
IMPACT OF €4.4M ON FY-EBITDA IN 2012, UNHEDGED*
USD/EURO development
1.45
External sales and net USD exposure
€m
2,827
Chemicals
1.40
157
1.35
949
Polysilicon
1.30
858
Siltronic
1.25
410
1.20
External Sales FY 2012
Source: www.x-rates.com/d/USD/EUR/hist2012.html
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 45
Net USD Exposure FY 2012
*Standard Hedging policy = 50% of net exposure, 12 months rolling forward
STRONG PERFORMANCE IN SILICONES
FY 2012 Sales*
FY 2012 EBITDA
0%
19%
21%
3%
Total:
€4,634.9m
21%
24%
54%
Total:
€786.8m
19%
35%
Others/Consolidation
*based on external sales
PRESENTATION – FULL YEAR 2012
Investor Relations, April 2013, Slide 46
Siltronic
WACKER POLYSILICON
WACKER SILICONES
WACKER BIOSOLUTIONS
WACKER POLYMERS
3%