Annual Report 2022

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Creating tomorrow’s solutions


At €8.21 Billion, Group Sales 32 Percent Above Prior-Year Figure of €6.21 Billion

In 2022, the WACKER Group posted markedly higher sales than in the prior year, with higher selling prices the main growth driver across all business divisions. Changes in exchange rates also had a positive effect. WACKER SILICONES recorded annual sales of €3.45 billion (2021: €2.60 billion), up by 33 percent year over year, primarily due to higher prices. Sales at WACKER POLYMERS came in at €2.00 billion in 2022 (2021: €1.67 billion), up 19 percent. Sales at WACKER BIOSOLUTIONS increased by 12 percent to €331.1 million (2021: €296.4 million). Sales at WACKER POLYSILICON increased by 50 percent to €2.29 billion (2021: €1.53 billion), especially due to higher selling prices.

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 €7.04 billion (2021: €5.25 billion), accounting for 86 percent of the total.

For further information, please refer to the Regions section.

Year-over-Year Sales Comparison

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Year-over-Year Sales Comparison (bar chart)

Group EBITDA at €2.08 Billion, with EBITDA Margin at 25.4 Percent

Group EBITDA grew by 35 percent year over year, amounting to €2.08 billion (2021: €1.54 billion). The EBITDA margin of 25.4 percent was higher than in the previous year (2021: 24.8 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, energy and logistics costs weighed heavily on EBITDA. The reversal of an impairment loss on an equity-accounted investment increased EBITDA by €72.4 million.

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

Reconciliation of EBITDA to EBIT








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Change in %















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














EBIT Reaches €1.68 Billion

Group earnings before interest and taxes (EBIT) totaled €1.68 billion in the reporting period (2021: €1.13 billion), yielding an EBIT margin of 20.5 percent (2021: 18.3 percent). In 2022, depreciation and amortization amounted to €402.1 million (2021: €404.2 million).

Reconciliation of EBIT to Net Income for the Period








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Change in %















Financial result







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 €2.16 billion, gross profit from sales was 29 percent higher year over year (2021: €1.67 billion). The cost of goods sold reached €6.05 billion (2021: €4.54 billion). The gross margin was 26.3 percent (2021: 26.9 percent). Although WACKER was able to leverage efficiency gains to slow the increase in the cost of goods sold, the combination of high raw-material and energy costs still caused that indicator to rise sharply. The Group’s cost-of-sales ratio rose from 73 percent to 74 percent year over year.

Functional Costs Increase

Other functional costs (selling, R&D and general administrative expenses) climbed by 13 percent year over year, coming in at €704.1 million (2021: €620.6 million). This increase was mainly due to higher selling costs and administrative expenses. Higher personnel costs were one of the reasons for the rise in costs at all divisions.

Other Operating Income and Expenses

In 2022, the balance of other operating income and expenses was €20.4 million (2021: €19.9 million). In the reporting year, income of €29.1 million from canceled long-term contracts was recognized in profit or loss. Foreign currency losses of €- 5.5 million (2021: gains of €4.7 million) reduced the other operating result.

Result from Investments

Compared with the previous year, investment income rose substantially, amounting to €201.7 million (2021: €62.5 million). The main components of income from joint ventures and associates were Siltronic AG, at €108.6 million, and the reversal of an impairment loss of €72.4 million on the equity-accounted investment in Dow Siloxane (Zhangjiagang) Holding Co., Private Ltd., Singapore.

Financial and Net Interest Result

WACKER’s financial result declined year over year, coming in at €- 2.6 million (2021: €- 0.7 million). Interest income was €10.1 million (2021: €6.2 million) and interest expenses reached €28.6 million (2021: €22.5 million). The net interest result was €– 8.5 million (2021: €- 6.3 million).

The other financial result came in at €- 4.1 million (2021: €- 4.4 million) In particular, remeasurement effects in connection with higher interest rates led to higher financial expenses. On the other hand, interest-rate effects of provisions for pensions and other provisions remained constant year over year.

Income Taxes

In 2022, WACKER reported tax expenses of €334.6 million (2021: €265.8 million). The Group’s effective tax rate was 20.7 percent (2021: 24.3 percent). The effective tax rate in the reporting year was lower due to tax-free income and to tax income for previous years.

Group Net Income

As a result of the effects mentioned, Group net income was €1,281.6 million, compared with €827.8 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 AG and the corresponding carrying amount in equity are not included when ROCE is calculated.

In the reporting year, ROCE was 34.7 percent (2021: 28.3 percent). The main reason for this increase was a marked improvement in EBIT. The amount of capital employed rose from €3.78 billion to €4.53 billion in the reporting year.

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.
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.
Systematic name given to compounds comprising silicon atoms linked together via oxygen atoms and with the remaining valences occupied by hydrogen or organic groups. Siloxanes are the building blocks for the polymers (polysiloxane and polyorganosiloxane) that form silicones.