WACKER CHEMIE AG 1 st Quarter 2007 Call Note. Dr. Peter-Alexander Wacker (CEO), Dr. Joachim Rauhut (CFO)

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Transcription:

WACKER CHEMIE AG 1 st Quarter 2007 Call Note Dr. Peter-Alexander Wacker (CEO), Dr. Joachim Rauhut (CFO)

DISCLAIMER The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of 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, as well as the words "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forward-looking 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 Wacker Chemie AG 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. Wacker Chemie AG 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. Page 1

STRONG START INTO 2007 Q1 WITH 18% GROWTH IN SALES AND 45% IN EBITDA m Q1 2007 Q1 2006 Sales 943.7 798.5 Change in % +18 EBITDA 265.5 183.6 +45 EBIT 187.9 105.7 +78 Net Income 114.5 66.2 +73 EPS in 2.30 1.49 +54 EBITDA margin 28.1% 23.0% +22 EBIT margin 19.9% 13.2% +51 Page 2

STRONG EARNINGS CONTRIBUTION FROM SILTRONIC AND POLYSILICON Q1 2007 Sales 943.7m Q1 2007 EBITDA 265.5m 22% 35% 38% 49% 15% 15% 9% 1% 12% 3% WACKER SILICONES Sales + 8% EBITDA - 1% WACKER POLYMERS Sales + 22% EBITDA + 44% WACKER FINE CHEMICALS Sales + 4% EBITDA - 38% WACKER POLYSILICON Sales + 8% EBITDA + 8% SILTRONIC Sales + 32% EBITDA + 88% Page 3

FASTEST GROWTH IN ASIA Americas Europe Asia * Share of Sales: 19% CAGR ( 04-06): 10% Major Sites Adrian, MI Portland, OR Share of Sales: 47% CAGR ( 04-06): 8% Major Sites Burghausen Freiberg Nünchritz Share of Sales: 34% CAGR ( 04-06): 35% Major Sites Zhangjiagang, China Nanjing, China Singapore Hikari, Japan Akeno, Japan Calcutta, India Sales by Region ( m) 174 + 2% 177 + 16% 386 14% 232 446 266 Europe w/o Germany + 34% 239* 321* 17% 154 180 Germany Q1/06 Q1/07 Q1/06 Q1/07 Q1/06 Q1/07 * including other regions Page 4

STRONG FREE CASHFLOW NET DEBT DOWN TO 143M WACKER Group Structure of Balance Sheet (%) Characteristics Total 3.5bn Total 3.5bn Fixed assets: 2,152m Current Assets Fixed Assets 38% 62% 32% 10% 9% 49% Accruals + Liabilities Pension Accruals Financial Debt Equity Pension accruals: 359m Net debt: 143m vs. (down 61% vs. Q4/2006) Prepayments received: 105m Equity: 1,699m (up 83% vs. Q4/06) Free Cashflow: 224m (up 10fold vs. Q1/06) March 31, 2007 Page 5

Q1 CHEMICALS: MILD WINTER BOOSTED CONSTRUCTION SECTOR Q1 Sales ( m) + 11% 532 478 Total Q1 EBITDA ( m) + 8% 94 102 20% 19% Total + 8% 323 348 SILICONES -1% 65 64 20% 19% SILICONES + 22% 149 121 POLYMERS + 44% 24 34 20% 23% POLYMERS + 4% 34 2006 2007 35 FINE CHEM. -38% 6 2006 2007 4 FINE CHEM. Q1/2007 YoY Increases in Methanol Weak US-Dollar SILICONES: Volume and mix effects New capacities adding to Sales POLYMERS: Productivity improvements Price increases Strong regional growth in Eastern Europe and China FINE CHEMICALS: Supported by agrocampaign business Page 6

Q1 POLYSILICON: STRONG QUARTER ON IMPROVING PRICING Sales ( m) + 8% 92 86 Q1 EBITDA ( m) + 8% 31 34 36% 36% Q1 2006 2007 2006 2007 Q1/2007 YoY Strong price trend continues Sales of hyper-pure poly +35% yoy Change in energy transfer costs Ramp-up of Poly 6 (3500t) begun Prepayments received ( 105m) 80% of planned volumes sold and under contract through 2015 (including sales to Siltronic group) Mild winter low sales of road salt Page 7

Q1 SILTRONIC: 300 MM DEMAND DRIVES GROWTH Sales ( m) 377 + 32% 286 Q1 EBITDA ( m) 130 + 88% 69 2006 2007 2006 2007 Strong volume growth in 300mm Stable ASPs Q1/2007 YoY Strong demand in all diameters Very high capacity utilization Expanding 300mm site in Burghausen More than 50% of sales in Asia 24% 35% Q1 Page 8

DEVELOPING ASIAN MARKETS Zhangjiagang: 200 kt siloxane + pyrogenic silica facilities Burghausen / Nanjing: Dispersible polymer powder for a growing market Downstream facilities operational Pyrogenic silica facility ready by end of 07 Capex: > 200 million for WACKER Accelerating capex in a tight market New dryers in Burghausen and Nanjing Capex: approx. 90 million Siloxane capacity Dispersible Powder capacity 2006: 200 kt +25% 2010: 250 kt 2006: 170 kt +35% 2010: 230 kt Page 9

ACCELERATING PROJECTS TO MEET DEMAND Burghausen: Getting polysilicon to the market Singapore: 300 mm wafers with Samsung Adding 8,000 tons until end of 2009 Accelerating Poly 6 (3,500t) in 2007 Capex: approx. 500 million Polysilicon capacity Monster fab 300,000 wafers per month Accelerating to early 2008 Capex: approx. US$1 billion (approx. 150 million for WACKER) 300mm wafer capacity 2006: 6,500 t +120% 2010: 14,500 t 2006: 285 kw/m +132% 2010: 660 kw/m Page 10

ADDING 8,000 T/A OF POLYSILICON BY 2010 TO SUPPORT OUR CUSTOMERS 2006 6,500 t/a O Existing capacity 2007 2008 2009 2010 Poly 4 addition finalized in November 06 + 3,500 t/a Burghausen ( Poly 6 ) O Accelerating schedule X + 4,500 t/a Burghausen ( Poly 7 ) O On track X Announcement Ramp up O Full capacity available Construction Progress Poly 6 Poly 6 Poly 6 Construction Progress Poly 7 Poly 7 Poly 7 August 2006 Starting with process equipment installation March 2007 Finally assembled TCS system November 2006 Preparing the location March 2007 Laying the foundations Page 11

WACKER S TCS PROCESS HELPS TO IMPROVE THE ENERGY PAYBACK TIME OF SOLAR SYSTEMS Energy consumption per kg solar silicon (rel. units) 3 Total process: silane production + deposition 2 1 quality? Performance? 0 Monosilane Rod mg-si- Refining Monosilane Granular WACKER TCS-Rod Source: REC Offering Memorandum (May 2006), REC Capital Markets Day (22/11/2006); WACKER estimates Page 12

SILTRONIC: COST-CUTTING ALONG THE VALUE CHAIN AND EXTENSION OF CAPACITY Siltronic s value-added chain: pulling, slicing, lapping, cleaning, polishing 2006 2007 2008 2009 2010 300 mm 285 kw/m Fab extension Freiberg finalized in December 06 Existing capacity 300 mm Burghausen (+ 60 kw/m) Fab extension 300 mm JV Singapore (+ 300 kw/m) X Construction of new fab 2005 2006 2007 2008 2009 Q1 Q2 X Announcement Q3 Q4 Ramp Q1 Q2 up Q3 Q4O Full Q1 capacity Q2 Q3 available Q4 O O 2010 Page 13

ONGOING DIVERSIFICATION OF SEMI DEMAND WITH DOUBLE DIGIT GROWTH RATES Key Messages Highest growth rates in Personal Technologies (MP3 players, digital TVs, multimedia cell phones) Decreasing share of PC based applications Page 14

CURRENCY: HIGH NATURAL HEDGE IN CHEMICALS SILTRONIC MORE EXPOSED External sales and net USD exposure 2006 (EUR Million) Chemicals 165 1,946 Polysilicon 0 Net USD exposure 2006 133 External sales 2006 Siltronic 585 1,258 2007: 1 ct change in USD/Euro ratio has an impact of 7 M Euro on EBIT, unhedged Page 15

WACKER CHEMIE AG 1 st Quarter 2007 Call Note Dr. Peter-Alexander Wacker (CEO), Dr. Joachim Rauhut (CFO)

ISSUER, CONTACT AND ADDITIONAL INFORMATION Issuer and contact: Wacker Chemie AG Hanns-Seidel-Platz 4 D-81737 Munich Investor Relations Mr. Joerg Hoffmann Tel. +49 89 6279 1633 Fax +49 89 6279 2933 joerg.hoffmann@wacker.com www.wacker.com ISIN: WKN: DE000WCH8881 WCH888 Deutsche Börse: WCH Ticker Bloomberg: CHM/WCK.GR Ticker Reuters: CHE/WCHG.DE Listing: Additional information: Frankfurt Stock Exchange Prime Standard Page 17