Annual Report 2021

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Creating tomorrow’s solutions


At €6.21 Billion, Group Sales 32 Percent Above Prior-Year Figure of €4.69 Billion

In 2021, the WACKER Group posted markedly higher sales than in the prior year, with higher prices and volumes across all divisions as the main growth drivers. Exchange-rate changes due to a higher US dollar year over year had a negative impact. WACKER SILICONES recorded annual sales of €2.60 billion (2020: €2.24 billion), up by 16 percent year over year due to higher volumes and prices. Sales at WACKER POLYMERS came in at €1.67 billion in 2021 (2020: €1.30 billion), up 29 percent. Sales at WACKER BIOSOLUTIONS increased by 20 percent to €296.4 million (2020: €246.1 million). Due in particular to higher prices for solar-grade polysilicon, WACKER POLYSILICON’s sales almost doubled, rising 93 percent to €1.53 billion (2020: €792.2 million).

For further information on the business divisions, please refer to the Segments section.

WACKER generated the majority of its sales outside of Germany. International sales came in at €5.25 billion (2020: €3.91 billion), accounting for 85 percent of the total.

For further information, please refer to the Regions section.

Year-over-Year Sales Comparison

€ million

Year-over-Year Sales Comparison (bar chart)

Group EBITDA at €1.54 Billion, with EBITDA Margin of 24.8 Percent

Group EBITDA grew by 131 percent year over year, coming in at €1.54 billion (2020: €666.3 million). The EBITDA margin of 24.8 percent was higher than in the previous year (2020: 14.2 percent). In addition to a substantial increase in sales, WACKER achieved reductions in current non-personnel and functional costs. That had a positive effect on EBITDA. However, high raw-material and energy costs weighed heavily on EBITDA. The Shape the Future efficiency program also included job reductions, with WACKER setting aside €48.0 million for voluntary termination benefits in the prior year. These costs had a negative impact on prior-year EBITDA.

For further information on the business divisions, please refer to the Segments section.

Reconciliation of EBITDA to EBIT








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Depreciation/amortization and
(reversals of) impairments of fixed assets














EBIT Reaches €1.13 Billion

Group earnings before interest and taxes (EBIT) totaled €1.13 billion in the reporting period (2020: €262.8 million), yielding an EBIT margin of 18.3 percent (2020: 5.6 percent). In 2021, depreciation and amortization amounted to €404.2 million (2020: €403.5 million).

Reconciliation of EBIT to Net Income for the Period








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Change in %















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Income before income taxes







Income taxes







Net result for the year







Of which







Attributable to Wacker Chemie AG shareholders







Attributable to non-controlling interests







Earnings per share (€) (basic/diluted)







Cost of Goods Sold Higher Year over Year

At €1.67 billion, gross profit from sales was 92 percent higher than a year earlier (2020: €869.9 million). The cost of goods sold came in at €4.54 billion (2020: €3.82 billion). The gross margin was 26.9 percent (2020: 18.5 percent). WACKER reduced the cost of goods sold by means of efficiency gains. Higher raw-material and energy costs, however, triggered a sharp increase in the cost of goods sold. The Group’s cost-of-sales ratio declined markedly, from 81 percent to 73 percent.

Functional Costs Climb

Other functional costs (selling, R&D and general administrative expenses) increased by 6 percent year over year, coming in at €620.6 million (2020: €586.7 million). This increase was mainly due to higher selling costs and administrative expenses across all corporate sectors.

Other Operating Income and Expenses

In 2021, the balance of other operating income and expenses was €19.9 million (2020: €-57.4 million). In the reporting year, €15.0 million in advance payments received under expired long-term contracts was recognized in profit or loss. In the prior year, other operating expenses included €48.9 million for termination benefits under the voluntary program. Most of these benefits were paid out in 2021. Foreign currency gains of €4.7 million (2020: €-7.8 million) improved the other operating result.

Result from Investments

Compared with the previous year, investment income rose substantially, coming in at €62.5 million (2020: €37.0 million). Siltronic was the main component of this profit from investments in joint ventures and associates.

Financial and Net Interest Result

WACKER’s financial result improved year over year, coming in at €-40.7 million (2020: €-44.9 million). Interest income was €6.2 million (2020: €8.1 million) and interest expenses reached €22.5 million (2020: €22.0 million). The net interest result was €-16.3 million (2020: €-13.9 million).

The other financial result came in at €-24.4 million (2020: €-31.0 million) and included lower interest-rate effects from provisions for pensions and other provisions as well as exchange-rate effects and the cost of derivative financial instruments used to hedge Group loans.

Income Taxes

In 2021, WACKER reported tax expenses of €265.8 million (2020: €15.6 million). The Group’s effective tax rate was 24.3 percent (2020: 7.1 percent). The prior-year effective tax rate was lower due to tax-free income and taxes for previous years.

Group Net Income

As a result of the effects mentioned, Group net income was €827.8 million, compared with €202.3 million in the previous year.

Return on Capital Employed (ROCE)

The return on capital employed (ROCE) is the ratio of earnings before interest and taxes (EBIT) to capital employed for business activities. Investment income from Siltronic and the corresponding carrying amount in equity are not included when calculating ROCE.

In the reporting year, ROCE was 28.3 percent (2020: 5.6 percent). The main reason for this increase was a marked improvement in EBIT. The amount of capital employed declined from €4.11 billion to €3.78 billion in the year under review.

Capital Employed (CE)
Capital employed is the sum of average noncurrent assets (less noncurrent securities and deferred tax assets), plus inventories and trade receivables (less trade payables). It is the variable used in calculating the cost of capital.
Earnings before interest and taxes: EBIT is a good indicator for comparing companies’ profitability, since it is widely used across the corporate world.
Earnings before interest, taxes, depreciation and amortization.
A polymer is a large molecule made up of smaller molecular units (monomers). It contains between 10,000 and 100,000 monomers. Polymers can be long or ball-shaped.
Hyperpure polycrystalline silicon from WACKER POLYSILICON is used for manufacturing wafers for the electronics and solar industries. To produce it, metallurgical-grade silicon is converted into liquid trichlorosilane, highly distilled and deposited in hyperpure form at 1,000 degrees Celsius.
Return on Capital Employed (ROCE)
Return on capital employed is the profitability ratio relating to the capital employed. ROCE is defined as earnings before interest and taxes (EBIT) divided by capital employed. Investment income from Siltronic AG and the corresponding carrying amount in equity are not included when ROCE is calculated. ROCE is a clear indicator of how profitably the capital required for business operations is being employed. It is influenced not only by profitability, but also by capital intensity with regard to noncurrent assets required for business operations and to working capital. ROCE is reviewed annually as part of our planning process and is a key criterion for managing our capital expenditure budget.
General term used to describe compounds of organic molecules and silicon. According to their areas of application, silicones can be classified as fluids, resins or rubber grades. Silicones are characterized by a myriad of outstanding properties. Typical areas of application include construction, the electrical and electronics industries, shipping and transportation, textiles and paper coatings.