Annual Report 2021

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Creating tomorrow’s solutions

Outlook for 2022

WACKER’s main planning assumptions relate to raw-material and energy costs, personnel expenses and exchange rates. For 2022, we anticipate a euro exchange rate of US$1.15 (2021: US$1.20). Energy prices and the average prices of our key raw materials should be significantly higher than last year. The majority of our raw-material and energy supplies are secured for 2022. However, this is based on the assumption that the geopolitical crisis in Eastern Europe will not lead to severe restrictions in Europe’s energy supplies. Due to our Shape the Future program, we expect savings in non-personnel costs and personnel expenses. On the other hand, our guidance also includes current expenses for phased early retirement.

Performance Indicators and Value-Based Management

WACKER’s key performance indicators are the same as last year.

Group Sales in 2022 to Benefit from Volume Growth

In 2022, WACKER expects to see volume growth and positive product-mix effects at its chemical divisions. In addition, changes in exchange rates will have a positive effect on sales. We expect to grow our sales across all regions. Overall, Group sales are likely to be approximately €7 billion.

Economic uncertainties may cause the actual performance of the WACKER Group and its divisions to diverge from our assumptions, either positively or negatively. However, we expect to continue growing in 2022, as long as there are no unforeseen slumps in WACKER’s key regions and industries, due for example to geopolitical crises such as in Ukraine, and the pandemic is contained effectively.

Outlook for Key Performance Indicators at the Group Level

From today’s perspective, the key performance indicators will develop as follows at the Group level.

Outlook for 2022




Reported for 2021


Outlook for 2022






Key Financial Performance Indicators





EBITDA margin (%)




Substantially lower than last year

EBITDA (€ million)




€1,200 – 1,500 million

ROCE (%)




Substantially higher than the cost of capital






Net cash flow (€ million)




Clearly positive, substantially lower than last year






Supplementary Financial Performance Indicators





Sales (€ million)




Around €7,000 million

Capital expenditures (€ million)




€550 – 600 million

Net financial assets/net financial debt (€ million)




Positive net financial assets






Depreciation/amortization (€ million)




Around €400 million

EBITDA margin and EBITDA: the EBITDA margin is expected to be significantly lower than last year. EBITDA should be within the bandwidth of €1.2 billion to €1.5 billion. Markedly higher raw-material and energy costs will have a negative impact of around €1 billion on EBITDA. This Group guidance also takes account of some of the economic uncertainty caused by the coronavirus pandemic. Group net income for the year will be markedly lower than last year.

ROCE: ROCE will be substantially higher than the cost of capital.

Net cash flow: we expect net cash flow to be clearly positive in 2022, though substantially lower than last year. This decrease will be driven by higher capital expenditures and an increase in working capital.

Outlook for Supplementary Performance Indicators at the Group Level

Capital expenditures: in 2022, capital expenditures will amount to between €550 million and €600 million, significantly more than last year and thus substantially higher than depreciation/amortization. At around €400 million, depreciation and amortization will be on par with last year. CapEx is being driven by strong customer demand and includes new dispersion and dispersible polymer powder facilities at the Nanjing site, capacity expansion for silicones at Burghausen, and a plant for making hybrid polymers at Nünchritz.

Net financial debt: net financial assets are likely to be substantially lower than last year, but still in positive territory.

Divisional Sales and EBITDA Trends

We expect WACKER SILICONES to post sales in the region of €3.0 billion in 2022. This sales growth will be driven by higher volumes for specialty applications and the higher average prices we will charge to compensate for the sharp increase in raw-material prices. The investment in specialty silane manufacturer SICO Performance Material in China is also likely to have a positive impact. We anticipate sales growth in all regions. The EBITDA margin is expected to be on par with last year.

At WACKER POLYMERS, we expect sales to grow to around €2.0 billion, buoyed by higher volumes of dispersions and dispersible polymer powders. Selling prices will be higher than last year, so as to offset increases in raw-material and energy prices as well as other costs. In this division, too, we anticipate sales growth in all regions. The EBITDA margin is expected to be on par with last year.

We predict that WACKER BIOSOLUTIONS will lift its sales by a low-double-digit percentage, with growth fueled by bioengineered products, particularly biologics. EBITDA should be slightly lower than last year. Earnings will be negatively impacted by downtime at a key plant for upstream chemicals and by higher expenses for digitalization efforts in the biologics segment.

We anticipate that WACKER POLYSILICON will post sales of around €1.6 billion in 2022, with volumes lower than last year given that we cannot realize any further inventory effects. Average polysilicon prices are expected to be higher than last year. However, surging raw-material and energy costs will have a negative impact. We will continue improving our product mix and systematically lowering costs. EBITDA is likely to come in between €330 million and €500 million.

Future Dividends

Our goal is to distribute about half of Group net income to shareholders, provided that the business situation permits this and the decision-making bodies agree.


The main features of our financing policy remain in place. We are confident that we have a strong financial profile with a sound capital structure and healthy maturities for our debt. As of December 31, 2021, WACKER had around €900 million in unused lines of credit with residual maturities of over one year.

Executive Board Statement on Overall Business Expectations

The risks to the economy will continue in 2022. The coronavirus pandemic will continue to impact global economic growth. On the positive side, economic analysts expect global gross domestic product (GDP) to continue growing, thanks to vaccination campaigns, concerted health-policy measures and government funding. We expect a positive business trend in 2022, with sales likely to be approximately €7 billion. EBITDA should be between €1.2 billion to €1.5 billion. The EBITDA trend will be dampened by significantly higher energy and raw-material costs, which are likely to total around €1 billion.

Capital expenditures will be driven by strong customer demand. At between €550 million and €600 million, they will be markedly higher than last year. Depreciation and amortization will come in at around €400 million, on par with last year. Net cash flow will be clearly positive, though substantially lower than last year. WACKER’s net financial assets are likely to be significantly lower than last year, but still in positive territory.

As regards the chemical divisions, we are confident that our excellent product portfolio will keep us on a growth trajectory and that our capital expenditures will meet market growth. We expect sales at WACKER POLYSILICON to be on par with last year.

As of the preparation date of these financial statements, nothing had changed as regards our guidance.

Dispersible Polymer Powders
Created by drying dispersions in spray or disc dryers. VINNAPAS® polymer powders are recommended as binders in the construction industry, e.g. for tile adhesives, self-leveling compounds and repair mortars. They improve adhesion, cohesion, flexibility and flexural strength, as well as water-retention and processing properties.
Binary system in which one solid component is finely dispersed in another. VINNAPAS® dispersions are vinyl-acetate-based copolymers and terpolymers in liquid form. They are mainly used as binders in the construction industry, e.g. for grouts, plasters and primers.
Earnings before interest, taxes, depreciation and amortization.
Net Cash Flow
Net cash flow is defined as the sum of cash flow from operating activities and cash flow from long-term investing activities (excluding securities).
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.
Silanes are used as monomers for the synthesis of siloxanes or sold directly as reagents or raw materials. Typical applications include surface treatment, agents (medically active substances) in pharmaceutical synthesis, and coupling agents for coatings.
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.