Financial-Management Principles and Goals

Our key financial-management goal is to secure WACKER’s financial strength over the long term. The central task is to sufficiently cover the financial needs of our operations and investment projects. Financial management at WACKER comprises capital structure management, cash and liquidity management, and the management of market-price risk (currencies and interest rates). Capital structure management involves shaping the capital structure of the Group and its subsidiaries.

In liquidity management, WACKER continuously monitors cash flows from operations and from financial transactions. WACKER covers the resulting liquidity needs via suitable instruments such as intra-Group lending, or through external loans from local banks.

WACKER pursues a careful financing policy that targets a balanced financing portfolio, a diversified maturity portfolio and a comfortable liquidity buffer.

WACKER’s key source of liquidity is the operations of its Group companies and the resulting incoming payments. This centralized system of internal transfers reduces our interest expense and the need for debt financing. The purpose of managing market-price risks is to limit the effects of fluctuations in exchange rates and interest rates on the Group’s bottom line.

New financing measures in 2025

WACKER issued a promissory note (German Schuldschein) in the amount of €435 million in 2025, maturing in 2028, 2030 and 2032. A bilateral bank loan of €150 million (due on maturity in 2031) was also agreed with the European Investment Bank (EIB) and disbursed.

The two syndicated loans of €200 million and €400 million, which serve as backup lines for the Group and have not been drawn down yet, will run until 2028 and 2029 respectively.

Financial analysis

The Group’s cash flow trend is a key liquidity management tool. Net cash flow serves as an internal indicator for measuring liquidity in operating activities.