Annual Report 2022

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Creating tomorrow’s solutions

Outlook for 2023

WACKER’s main planning assumptions relate to raw-material and energy costs, personnel expenses and exchange rates. For 2023, we anticipate a euro exchange rate of US$1.10 (2022: US$1.05). Energy costs should be slightly higher than last year, while average prices of our key raw materials are expected to be below last-year’s level. The majority of our raw-material and energy supplies are secured for 2023.

Performance Indicators and Value-Based Management

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

Group Sales in 2023 to Benefit from Volume Growth

In 2023, WACKER expects to see lower average selling prices, but rising volumes and positive product-mix effects at its chemical divisions. Changes in exchange rates will have a marginally negative effect on sales. After a record-breaking 2022, we expect sales across all regions to be slightly lower in 2023. Overall, Group sales are likely to range between €7.0 billion and €7.5 billion.

Various uncertainties and risks may cause the actual performance of the WACKER Group and its divisions to diverge from our assumptions, either positively or negatively. Changes in the economic environment are among the factors than can cause such divergences. We expect selling prices to decline substantially in 2023. At the same time, however, we anticipate further volume growth. WACKER sees further potential for higher volumes, provided that the economy recovers in the course of the year, the economic effects of the coronavirus pandemic can be overcome and there is no further escalation in the Ukraine war or the energy crisis.

Outlook for Key Performance Indicators at the Group Level

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

Outlook for 2023




Reported for 2022


Outlook for 2023






Key financial performance indicators





EBITDA margin (%)




Substantially lower than last year

EBITDA (€ million)




€1,100-1,400 million

ROCE (%)




Higher than cost of capital, substantially lower than last year

Net cash flow (€ million)




Positive, substantially lower than last year






Supplementary financial performance indicators





Sales (€ million)




€7,000-7,500 million

Capital expenditures (€ million)




Around €650 million

Net financial assets (€ million)




Low net financial debt

Depreciation/amortization (€ million)




Around €450 million

EBITDA margin and EBITDA: the EBITDA margin is expected to be significantly lower than last year. EBITDA is likely to come in between €1.1 billion and €1.4 billion, down due to significantly lower selling prices. We expect Group net income to be substantially lower than last year.

ROCE: ROCE will be higher than the cost of capital, but substantially lower than last year.

Net cash flow: we expect net cash flow to be positive in 2023, though significantly lower than last year, due to higher capital expenditures and lower earnings.

Outlook for Supplementary Performance Indicators at the Group Level

Capital expenditures: in 2023, capital expenditures will amount to around €650 million, up markedly compared with last year. They will significantly exceed depreciation and amortization, which will be around €450 million and thus higher than last year. Capital expenditures will be driven by future customer demand, focusing, for example, on a new dispersible polymer powder facility at the Nanjing site, capacity expansion for silicones at Burghausen and Nünchritz, and construction of an mRNA competence center in Halle.

Net financial debt: we expect to post a small net financial debt in 2023.

Divisional Sales and EBITDA Trends

We expect WACKER SILICONES to post sales in the region of €3.1-3.3 billion in 2023. This decline in sales will be due to lower average selling prices, which volume growth in specialty applications will not be able to offset. We anticipate sales will be lower across all regions. The EBITDA margin is expected to be around 15 percent.

At WACKER POLYMERS, we expect sales to come in at around €1.8 billion, due to lower selling prices and volumes for dispersions and dispersible polymer powders. Product-mix effects will have a marginally positive effect on sales. Here, too, we expect sales to be lower in all regions. The EBITDA margin is expected to be slightly higher than last year.

We expect WACKER BIOSOLUTIONS to grow its sales by a low-double-digit percentage, with growth fueled by bioengineered products, particularly biologics. EBITDA should be significantly higher than last year.

We expect WACKER POLYSILICON to post sales of between €1.6 billion and €1.8 billion in 2023, with volumes likely to be lower than last year due to product-mix effects. Average polysilicon prices are also expected to be lower than last year. We will continue improving our product mix and systematically lowering costs. EBITDA should range between €300 million and €500 million, with slightly higher energy prices, especially at the company’s sites in Germany, having a negative impact.

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, 2022, WACKER had around €600 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 remain in 2023. Global economic growth will continue to be influenced by the effects of Russia’s war of aggression against Ukraine. In particular, high energy prices will have a heavy impact on enterprises, especially in Europe. According to economic analysts’ forecasts, global GDP will grow only slightly. Some countries, including Germany, could slip into recession in 2023. After a record-breaking 2022, we expect our business performance to decline slightly in 2023. Sales are likely to range between €7.0 billion and €7.5 billion, while EBITDA should amount to between €1.1 billion and €1.4 billion. The EBITDA trend will be dampened by significantly lower selling prices and higher energy costs. We expect the EBITDA margin to be substantially lower than last year.

WACKER will increase its capital expenditures in 2023 to underpin the future growth of its divisions. At around €650 million, CapEx will be markedly higher than last year. Depreciation and amortization should total around €450 million. Though remaining in positive territory, net cash flow will be substantially lower than last year. We should post a small net financial debt.

We assume chemical-division sales will be slightly lower in 2023. Given our excellent product portfolio, however, we are confident of being able to return to our growth trajectory in the medium-to-long term. WACKER BIOSOLUTIONS should continue growing in 2023. We expect WACKER POLYSILICON’s sales to be lower in 2023 than 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).
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 °C.
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.