Management Report of Wacker Chemie AG

(Summary as per German Commercial Code)

Further to our report on the WACKER Group, we explain developments at Wacker Chemie AG. As required by German law, the combined management report includes all mandatory reporting elements pertaining to Wacker Chemie AG.

Wacker Chemie AG is the parent company of the WACKER Group and is headquartered in Munich, Germany. The parent company operates through four business divisions – WACKER SILICONES, WACKER POLYMERS, WACKER POLYSILICON and WACKER BIOSOLUTIONS – which generate a substantial part of the Group’s sales. Wacker Chemie AG’s Executive Board exercises key leadership functions for the whole Group. The Executive Board determines the Group’s strategy, allocates resources (such as investment funds) and is responsible for the management of executives and of corporate finances. It also oversees communication with important target groups, especially shareholders and capital markets.

Wacker Chemie AG had 8,886 employees as of December 31, 2010.

The annual financial statements of Wacker Chemie AG were prepared in accordance with the German Commercial Code (HGB) and the German Stock Corporation Act (AktG). Furthermore, the German Accounting Law Modernization Act (BilMoG), which took effect in 2009, was applied for the first time.