WACKER BIOSOLUTIONS

Strategy

WACKER BIOSOLUTIONS concentrates mainly on the pharmaceutical, agrochemical and food industries. We increasingly draw on chemical-biotech synergies to provide our customers with complete solutions for their specific market needs. To benefit from the high growth offered by biotechnology, we are especially active in the areas of biopharmaceuticals, food supplements, food ingredients and agrochemicals. In our target industries, being highly customer oriented is vital to our products’ success. Consequently, the division’s organizational structure focuses very strongly on customers and markets.

Sales Slightly Up

Sales at WACKER BIOSOLUTIONS edged up in 2011, rising 1.5 percent to €144.5 million (2010: €142.4 million). Price increases compensated for lower volumes and negative exchange-rate effects. WACKER BIOSOLUTIONS saw a decline in volumes for gumbase and cyclodextrins. In contrast, biopharmaceuticals business grew. The region with the highest growth rate was Asia (18 percent), with China driving this development. Business in Germany also made positive progress, while sales revenues in Europe and the Americas were below the prior-year figures.

EBITDA of €20.4 million (2010: €25.0 million) was lower than in 2010. The decline amounted to 18.4 percent. Higher raw-material costs were the main factor behind this trend. The EBITDA margin reached 14.1 percent (2010: 17.6 percent).

Higher Year-over-Year Investments

Investments increased to €8.6 million, compared with €6.5 million in 2010. Expenditures focused on existing production facilities.

The number of employees at WACKER BIOSOLUTIONS as of December 31, 2011, fell to 354 (December 31, 2010: 363).