Photovoltaic Market Shaped by Volume Growth Amid Low Prices

As expected, WACKER POLYSILICON’s sales fell in 2013, declining 18.6 percent to € 924.2 million (2012: € 1.14 billion). Although WACKER POLYSILICON sold more polysilicon than ever before, with 49,000 metric tons shipped, its 2013 sales were down year on year due to the marked drop in average prices for hyperpure polysilicon. Fiscal 2013 was shaped by continued photovoltaic-market growth, by persistent overcapacity throughout the supply chain and by price pressure. The uncertainties in the anti-dumping dispute between the EU and China curbed production, especially in the third quarter. Following an agreement in the anti-dumping dispute, polysilicon volumes picked up in the fourth quarter of 2013. In the division’s sales regions, Asia has been playing an ever-greater role. Conversely, sales continue to decline in Europe and the Americas.

EBITDA fell 45.3 percent to € 233.9 million (2012: € 427.5 million), dampened primarily by prices that were, on average, markedly lower than in the previous year. Terminations of supply contracts with customers who exited the solar business and payment of damages added a total of € 77.6 million to EBITDA. The EBITDA margin reached 25.3 percent (2012: 37.6 percent).

Investments Below Prior-Year Level

In 2013, WACKER POLYSILICON’s capital expenditures were lower than a year earlier. This was primarily due to our extended timeline for completing the new polysilicon site in Tennessee (USA), with production now scheduled to begin in the second half of 2015. Investments decreased 58.5 percent to € 290.0 million (2012: € 698.1 million). Most capital expenditures were for constructing the new production site in Tennessee. We estimate that construction of the new production site will cost a total of some US$ 2.2 billion.

The number of employees fell. It decreased to 2,102 (Dec. 31, 2012: 2,349).

Key Data: WACKER POLYSILICON