In 2014, WACKER SILICONES increased its sales by 3.7 percent to € 1.73 billion (2013: € 1.67 billion), mainly due to higher volumes and changes in the product mix. Slightly lower prices impeded sales growth, especially at the start of the year. WACKER SILICONES was able to lift its sales across all business sectors, posting above-average growth with specialty products. Silicone volumes were especially strong for electronics applications and the automotive industry. In regional terms, we achieved growth in Asia (+7 percent), the Americas (+3 percent) and the “Other” regions (+6 percent). Although sales in Europe as a whole remained at prior-year levels, 5-percent growth was achieved in Germany. EBITDA was lower year on year, declining 8.9 percent to € 209.8 million (2013: € 230.2 million). One of the main reasons for this decrease was the reversal in 2013 of a provision set aside to cover contingent losses from future purchase obligations from the joint venture with Dow Corning in China. This reversal had a positive impact on EBITDA in 2013 in the amount of € 13.7 million. Overall, raw-material and energy costs in 2014 were on a par with the previous year – with hardly any change in the average prices of either silicon metal or methanol. Earnings growth was dampened by slight price pressure and general cost increases. The EBITDA margin declined to 12.1 percent (2013: 13.8 percent).

Investments at Prior-Year Level

Investments rose only marginally year on year to € 88.5 million (2013: € 85.4 million), an increase of 3.6 percent. Capital expenditures went primarily toward expanding capacities for intermediate and downstream products.

Continued Expansion of Sales Structures in Asia

To better serve the needs of our customers in Asia, we expanded our technical competence center at Amtala, which is near Kolkata, India. Thanks to its cutting-edge application technology and test equipment, the center enables customers from the construction, textile and personal-care industries to develop and test new products and applications. WACKER SILICONES had 4,240 employees as of December 31, 2014 (Dec. 31, 2013: 4,109).

Key Data: WACKER SILICONES