Executive Board Evaluation of Overall Risk

The Executive Board bases its estimate of the overall risk situation on the risk management system in place. The system compiles all risks identified by our divisions, corporate departments and regional entities, and is regularly reviewed by the Executive Board. The risk related to the Chinese government’s anti-dumping proceedings grew as the year progressed. The overall risk has therefore increased compared with a year earlier.

As of this report’s publication date, the Executive Board does not see any individual or aggregate risk that could endanger WACKER’s future in any material way. Market risks still exist in the photovoltaic industry, which is dominated by overcapacity, low prices and intra-sector consolidation. Despite these risks, we continue to see good opportunities for WACKER to be successful in this market in the medium to long term. We remain confident that WACKER is strategically and financially so well positioned that we can take advantage of any opportunities that arise.