Wacker Chemie AG: WACKER posts new all-time highs for sales, earnings and net cash flow in 2021

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DGAP-News: Wacker Chemie AG / Tag(s): Preliminary results

Wacker Chemie AG: WACKER posts new all-time highs for sales, earnings and net cash flow in 2021

26.01.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

  • GROUP TURNOVER OF EUR 6.20 BILLION, UP BY A THIRD COMPARED TO A YEAR EARLIER
  • AT EUR 1.5 BILLION, EBITDA HAS MORE THAN DOUBLE YEAR-ON-YEAR
  • EBIT IS APPROXIMATELY 1.09 BILLION EUROS
  • THE 2021 NET INCOME IS 780 M?
  • NET CASH FLOW OF EUR 760 MILLION BEAT THE STRONG FIGURE OF THE PREVIOUS YEAR

Munich, January 26, 2022 – Wacker Chemie AG closed the year 2021 with new all-time highs in terms of sales, profit and net cash flow. According to provisional figures, the chemical group from Munich achieved a total turnover of 6.20 billion euros in the year under review. This was 32% more than in 2020 (4.69 billion euros). This strong growth is mainly due to the growth in volumes and the rise in selling prices in all business segments. Currency effects, on the other hand, dampened sales somewhat.

The Group’s preliminary EBITDA (earnings before interest, tax, depreciation and amortization) reached €1.50 billion in 2021 (2020: €666 million), more than double the previous year’s figure. Operational performance was driven not only by higher volumes and prices, but also by cost savings achieved through the Group’s ongoing efficiency program. On the other hand, certain raw material and energy prices were significantly higher, reducing EBITDA by around €500 million.

Due to the effects mentioned above, the EBIT (earnings before interest and taxes) increased to around 1.09 billion euros (2020: 263 million euros). Depreciations amounted to approximately 400 million euros, essentially on par with the 404 million euros of the previous year. The net result reached approximately 780 million euros in 2021 (2020: 202 million euros).

“All of our business divisions contributed to last year’s strong sales growth,” said CEO Christian Hartel. “Demand remained robust throughout the year in most of our customer sectors. We also obtained significantly higher prices for our products than in 2020, helping us to offset the sharp increase in the prices of certain raw materials. Demand remains high heading into 2022, underscoring the excellent growth prospects of our business portfolio.”

Investments, net cash and net financial assets

According to preliminary figures, WACKER’s capital expenditure reached 340 million euros in 2021 (2020: 224 million euros), up 52% ​​compared to the previous year. The investment focused on capacity expansion for silicone and polymer products.

Free cash flow totaled approximately €760 million in 2021 (2020: €698 million), up 9% year-on-year. This increase is mainly due to cash inflows from operating activities. Payments to a trust company to partially fund WACKER’s pension obligations from direct liabilities reduced reported net cash flow by approximately €250 million. This arrangement concerns company pension benefits which go beyond the basic pension provided by the Pensionskasse der Wacker Chemie VVaG. The figure mentioned above has been recorded as a pension plan asset in WACKER’s statement of financial position, reducing the pension provisions by the same amount. Also due to higher discount rates, pension provisions amount to ? 1.8 billion at the end of 2021 (31 Dec. 2020: 2.71 billion?). WACKER expects the return on new plan assets to lighten the future burden of pension liabilities. This, in turn, will have a positive impact on the key elements of the statement of financial position and the statement of cash flows.

As of December 31, 2021, WACKER had net financial assets of approximately €550 million (December 31, 2020: net financial debt of €68 million).

Business Divisions

In 2021, all WACKER business divisions recorded substantial sales gains thanks to volume growth and better prices. The polysilicon activities performed particularly well.

WACKER SILICONES generated annual sales of 2.60 billion euros, exceeding its figure for the previous year (2.24 billion euros) by 16%. Sales of WACKER POLYMERS reached EUR 1.67 billion in 2021 (2020: EUR 1.30 billion), an increase of 28%. WACKER BIOSOLUTIONS increased its sales by 20% to 295 million euros (2020: 246 million euros). At 1.53 billion euros, sales of WACKER POLYSILICON were almost twice as high as the previous year (792 million euros).

The EBITDA of the different business segments evolved unevenly in 2021. WACKER recorded substantial gains for polysilicon and silicones, while the EBITDA of bioengineered products increased slightly. On the other hand, the EBITDA of Dispersions and Dispersible Polymer Powders decreased somewhat in a context of much higher raw material prices. Cost savings achieved through the Group’s ongoing efficiency program strengthened EBITDA in each division.

WACKER SILICONES generated an EBITDA of €555 million in 2021 (2020: €388 million). It was a 43 percent increase. Alongside the growth in volumes and the improvement in silicone prices, the division mainly benefited from the growing share of higher-margin specialties in its portfolio.

At WACKER POLYMERS, EBITDA amounted to 255 million euros (2020: 271 million euros). The main reason for the 6% decline was the substantial year-over-year rise in commodity prices. However, volume growth and price increases almost offset this effect.

WACKER BIOSOLUTIONS generated EBITDA of EUR 40 million (2020: EUR 38 million), an increase of 5%.

In 2021, WACKER POLYSILICON benefited from volume growth and above all from significantly higher prices for solar-grade polysilicon. The division increased its EBITDA to €655 million (2020: €5 million). The focus on high quality polysilicon for semiconductor applications and further improvements in production costs also had a positive effect on the operating result.

WACKER preliminary key figures

? million 2021st 2020 Change
in %
Sales 6,200 4,692 32
EBITDA 1,500 666 >100
EBITDA margin(%) 24 14
EBIT 1,090 263 >100
EBIT margin(%) 18 6
Net income for the year 780 202 >100
Capital expenditure 340 224 52
The net cash flow 760 698 9

The figures and forecasts for 2021 contained in this press release are preliminary and unaudited. Wacker Chemie AG will publish its annual report 2021 on March 15, 2022.

This press release contains forward-looking statements based on assumptions and estimates by WACKER’s board of directors. Although we assume that the expectations contained in these forward-looking statements are realistic, we cannot guarantee that they will prove to be correct. Assumptions may involve risks and uncertainties that may cause actual figures to differ materially from forward-looking statements. Factors that may cause such deviations include, but are not limited to, changes in the economic and business environment, changes in exchange and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. WACKER does not plan to update its forward-looking statements, nor does it assume any obligation to do so.

For more information, please contact:
Wacker Chemie AG
Media Relations and Information
Christof Bachmair
Phone. +49 89 6279-1830
[email protected]

26.01.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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