PRESS RELEASE. WACKER Posts Higher Sales for 2018, with EBITDA Below Previous Year Due to As-Yet Outstanding Insurance Compensation.

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1 Wacker Chemie AG Hanns-Seidel-Platz München, Germany PRESS RELEASE Number 1 WACKER Posts Higher Sales for 2018, with EBITDA Below Previous Year Due to As-Yet Outstanding Insurance Compensation GROUP SALES FOR FULL-YEAR 2018 RISE 1 PERCENT TO 4.98 BILLION EBITDA OF 930 MILLION IS 8 PERCENT BELOW PRIOR YEAR, DUE TO AS-YET OUTSTANDING INSURANCE COMPENSATION FOR INCIDENT AT SITE IN TENNESSEE EBIT FOR 2018 COMES IN AT 390 MILLION INCOME FROM CONTINUING OPERATIONS REACHES 260 MILLION, UP 4 PERCENT VERSUS A YEAR EARLIER NET CASH FLOW IS ABOUT 120 MILLION FOR 2018 Munich, January 18, 2019 Wacker Chemie AG increased its sales slightly for full-year 2018, as projected. According to preliminary figures, the Munich-based chemical group posted total sales of 4.98 billion last year (2017: 4.92 billion). That was a rise of 1 percent, which was mainly due to higher volumes and prices in chemicals. Silicones saw especially strong growth. As a result, the company more than compensated for year-over-year euro appreciation and the market-driven decline in polysilicon volumes and prices. The Group s preliminary EBITDA for 2018 amounted to 930 million (2017: 1,014 million). That was 8 percent less than the year before. The EBITDA trend was dampened not only by the insurance compensation still outstanding for the incident at Charleston and the solar

2 January 18, 2019 Press Release No. 1 Page 2 of 5 market s weakness, but also by significantly higher raw-material costs. EBIT (earnings before interest and taxes) came in at 390 million, down 8 percent year-over-year (2017: 424 million). A positive factor for EBIT was the continuing decline in depreciation, to 540 million in 2018 (2017: 590 million). Group income from continuing operations reached 260 million in 2018 (2017: 250 million), 4 percent higher than the previous year. Net income for 2018 also totaled to 260 million s net income of 885 million included income of 635 million from discontinued operations. Our chemical business which we are expanding through investments continued its very robust trend in the final quarter of 2018, said CEO Rudolf Staudigl. Sales and EBITDA in chemicals were markedly higher in the fourth quarter than in the comparable yearearlier period. WACKER POLYSILICON s performance, on the other hand, was dampened by persistently difficult market conditions in the solar industry and by business interruption costs at our Charleston site. We returned to full capacity there in early December But, as a result, there was not enough time left to conclude our talks with the insurer for fiscal We continue to expect that insurance compensation will fully cover the repair work at the site and the business interruption loss. We expect this during Investments, Net Cash Flow and Net Financial Debt According to preliminary figures, WACKER s capital expenditures in 2018 reached 460 million (2017: 327 million). That was 41 percent more than the year before. Capital spending focused on capacity expansion at our chemical divisions. Net cash flow for 2018 totaled some 120 million (2017: 358 million). Cash inflows were thus

3 January 18, 2019 Press Release No. 1 Page 3 of 5 clearly positive and substantially below the year-earlier figure, as projected. They decreased 66 percent. Net financial debt was somewhat above 600 million at year-end 2018 (Dec. 31, 2017: 454 million). Business Divisions In 2018, WACKER benefited above all from the robust demand for its chemical products. WACKER SILICONES lifted its annual sales to 2.50 billion (2017: 2.20 billion), beating its year-earlier figure by 14 percent. WACKER POLYMERS posted sales of 1.28 billion for 2018 (2017: 1.25 billion). That was a gain of 3 percent. Sales at WACKER BIOSOLUTIONS climbed 10 percent last year to 225 million (2017: 206 million). The chemical divisions total EBITDA also grew in The main factors lifting EBITDA for chemicals were volume gains and better prices. WACKER SILICONES generated EBITDA of 615 million in 2018 (2017: 445 million). That was 38 percent higher. The increase was driven by better prices for standard products and by strong volume growth in specialties coupled with a related product-mix improvement. EBITDA at WACKER POLYMERS amounted to 150 million (2017: 206 million). The main reason for the 27 percent decline was markedly higher raw-material prices versus the year before. WACKER BIOSOLUTIONS posted EBITDA of 25 million last year (2017: 38 million). This 34 percent decrease was chiefly due to the integration costs for the new biologics site in the Netherlands. In 2018, WACKER POLYSILICON generated sales of 825 million (2017: 1.12 billion). The decline of 27 percent was prompted by market-driven pressure on volumes and prices, by the production

4 January 18, 2019 Press Release No. 1 Page 4 of 5 shutdown at Charleston in the first months of last year and by the gradual ramp-up of production, which was concluded only in early December. China s decision to curb the amount of new photovoltaic installations slowed demand for solar modules, starting late May WACKER POLYSILICON used this market situation for inventory rebuilding so that it can supply customers promptly in the future. EBITDA at WACKER POLYSILICON totaled 70 million (2017: 290 million), decreasing 76 percent versus the year before. Alongside lower sales, earnings were impacted by business interruption costs at Charleston which have not yet been compensated for by insurance. WACKER s Preliminary Key Figures million Change 2018e 2017 in % Sales 4,980 4,924 1 EBITDA ,014-8 EBITDA margin 2 (%) EBIT EBIT margin 2 (%) Income from continued operations Net income Capital expenditures Net cash flow from continued operations EBITDA is EBIT before depreciation and amortization. 2 Margins are calculated based on sales. 3 EBIT is the result from continuing operations for the period before interest result and other financial result, and income taxes. 4 Sum of cash flow from operating activities (excluding changes in advance payments) and cash flow from long-term investing activities (before securities), including additions due to finance leases.

5 January 18, 2019 Press Release No. 1 Page 5 of 5 The 2018 figures and forecasts in this press release are preliminary. Wacker Chemie AG will publish its Annual Report for 2018 on March 19, For further information, please contact: Wacker Chemie AG Media Relations & Information Christof Bachmair Tel christof.bachmair@wacker.com follow us on: The company in brief: WACKER is a globally-active chemical company with some 13,800 employees and annual sales of around 4.9 billion (2017). WACKER has a global network of 23 production sites, 21 technical competence centers and 50 sales offices. WACKER SILICONES Silicone fluids, emulsions, rubber grades and resins; silanes; pyrogenic silicas; thermoplastic silicone elastomers WACKER POLYMERS Polyvinyl acetates and vinyl acetate copolymers and terpolymers in the form of dispersible polymer powders, dispersions, solid resins and solutions WACKER BIOSOLUTIONS Biotech products such as cyclodextrins, cysteine and biologics, as well as fine chemicals and PVAc solid resins WACKER POLYSILICON Polysilicon for the semiconductor and photovoltaic industries