WACKER SILICONES - SUSTAINABILITY DRIVES OUR BUSINESS

Transcription

1 WACKER SILICONES - SUSTAINABILITY DRIVES OUR BUSINESS Dr. Carlos Weise, President WACKER SILICONES February 1st, 2011 CREATING TOMORROW'S SOLUTIONS

2 DISCLAIMER The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, as well as the words "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changing business or other market conditions and the prospects for growth anticipated by Wacker Chemie AG s management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Wacker Chemie AG does not undertake any obligation to update or revise any statements contained in this presentation, whether as a result of new information, future events or otherwise. In particular, you should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 1

3 OUR BUSINESS PORTFOLIO A FOUNDATION FOR GROWTH Siltronic Strong No. 3 Technology leader Balanced base of customers BIOSOLUTIONS High potential for future development POLYMERS No. 1 in dispersible polymer powders No. 1 in VAE dispersions Global footprint POLYSILICON Cost and quality leader Strong No. 2 in capacity Impeccable growth record 22% 30% bn (preliminary data) 48% SILICONES Strong global No. 3 Commodity base & specialty strength High focus on China / Asia Innovation & Engineering Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 2

4 WACKER: HIGHLY INTEGRATED OPERATIONS BASED ON THREE KEY RAW MATERIALS Raw Material Upstream Downstream Customers Industries Silicon Metal Siloxane Pyrogenic Silica Silicones Construction Automotive Suppliers Paints and Coatings Textiles Print and Paper, Personal Care Polysilicon Electronic Wafers Hyperpure Silicon Wafers Semiconductors Solar Modules Eng. Fabrics, Coatings. Adhesives Ethylene VAE Dispersible Polymer Powders (DPP) Construction (Tile Adhesives. Dry Mortars. EIFS) VAM PVAc Automotive, Food Starch/Dextrose Microb. Fermentation Therapeutic Proteins Food ingredients Food, Life Sciences, Household VAM = Vinyl acetate monomer. VAE = Vinyl acetate ethylene, PVAc = Polyvinyl acetate, EIFS = Exterior insulation and finish system Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 3

5 SILICONES: UNIQUE PROPERTIES SUPPORT GLOBAL MEGATRENDS IN CONSUMER PRODUCTS SILICONES Performance Sales in m 1,361 1,409 1,287 1,239 Volume (indexed) Elastomers Performance Silicones Solid growth history of SILICONES 100 CAGR % 9.3% e Tailoring of customized solutions EBITDA Margin 18.0% 16.7% 11.9% 12.7% e Health & Wellness Mobility/Fuel Efficiency Construction Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 4

6 UNIQUE PROPERTIES OF SILICONES SUPPORT GLOBAL MEGATRENDS IN CONSUMER PRODUCTS Silicones: a Unique Set of Product Properties Tailoring of customized solutions Flexibility Insulating Heat resistance Hydrophobicity Softening Radiation resistance Unique property profiles Glossiness UV-stability Transparency Adhesion Foam control Discharge safety Advanced process ability Dielectricity Durability Release properties Superior performance in consumer goods Megatrends Drive Silicones Growth Mobility/Fuel Efficiency Construction Convenience/Fashion Health & Wellness Safety Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 5

7 SILICONES CREATE VALUE IN MANY PROCESSING INDUSTRIES Market Structure by Application Segment Paper Construct./Renovat. Others Textile 6% 5% 7% 20% Chemical Industry 11% Market 2010 Energy / Electronics 8bn* 16% Health & Wellness 10% Plastics 12% 13% Automotive * Source: WACKER estimates Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 6

8 CONCENTRATED UPSTREAM PRODUCTION SUPPORTS GLOBAL REACH Business Division Silicones 12 production sites from Raw Material to Downstream Holla Chino Adrian North Canton Kempten Nuenchritz Burghausen Zhangjiagang Shanghai Akeno Calcutta Jandira Raw Material Upstream Downstream Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 7

9 WACKER SILICONES: SILICON METAL INTEGRATION PROVIDES LONG-TERM SUPPLY STABILITY Silicones Supply Chain Global Silicon Metal Production 2009 Raw Materials Silicon Metal Methanol Upstream Pyrogenic Silica Silanes Siloxanes Downstream Silicones Intermediates Polymers Fluids Resins Emulsions Silica Particles Specialty Silanes Compounds Sealants Elastomers Emulsions Defoamers Release Agents CMP Slurries China 53% ROW 9% Western Europe 17% Closed loop operation HCl Performance Materials for the Processing Industry Source: CRU 2009 World Silicon Production Americas 21% Silicon Metal Global Uses 2009 Price Development in per ton Silicones 40% Electronics/Solar 5% Alloys 55% 2,700 2,450 2,200 1,950 1,700 1,450 1,200 01/07 05/07 09/07 01/08 05/08 09/08 01/09 05/09 09/09 01/10 05/10 09/10 Source: CRU / WACKER estimates Source: CRU Spot Price Silicon Metal Europe free delivered Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 8

10 SITE ACQUISITION HOLLA METALL FROM FESIL A/S Overview Holla Metal: Founded 1964, about 90km from Trondheim 48 kt silicon metal capacity and 24 kt micro silica as a by-product 140 employees Direct shipping via own quay Certified production according to ISO 9001 and Process: carbothermic reaction of silica (quartz) in an electric arc furnace at ~1,800 C Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 9

11 THE ZHANGJIAGANG SILICONES COMPLEX A WORLD- SCALE INTEGRATED PRODUCTION SITE Integrated silicones production in Zhangjiagang Siloxane Pyrogenic silica Silicone sealants Elastomers Polymer & Fluids Silicone emulsions WACKER facilities WACKER and DC joint facilities Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 10

12 EMERGING COUNTRIES: IMPROVED LIVING STANDARDS DRIVE SILICONE SALES Silicon usage per capita 2005 (USD) 1.6 bn Social Climbers until Western Countries 7.05 Global Silicon Market (CAGR 2010/2014 6,6%) Δ= % bn 37% 27% bn 40% NAFTA EU China GUS Brasil. Indien BRIC % 33% BRIC Mobility Construction Convenience / Fashion Health & Wellness Safety Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 11 Source: Goldman Sachs : "The World and the BRICs Dream" from 11/2005

13 SILICONE ELASTOMERS IN INFRASTRUCTURE: MAJOR ROLE IN POWER GENERATION, TRANSMISSION AND DISTRIBUTION Advantages of Silicone Elastomers in Power Generation, Transmission and Distribution UV resistance Heat resistance Low flammability Germany s Electricity Grid The network of high-voltage and extra-high-voltage lines has a length of over 100,000 km. Hydrophobicity Erosion and tracking resistance Corona and ozone resistance Unaffected by mechanical loading It is estimated that about 3.75 million insulators are in use. In Europe, tens of millions of insulators are therefore in use.* *Source: WACKER estimate Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 12

14 SUPERIOR SAFETY SOLUTIONS: CERAMIFYING SILICONES IN FIRE PROTECTION Fire Safety Cables Protect Human Life Assure power supply in fires up to 2 hours and 1100 C (2012 F) Ceramifying silicone rubbers best in fire performance. They are halogen free and produce limited smoke Airport Munich Terminal 2 Only baggage handling required 40 km (25 mi) of safety cables Ceramifying Silicones Allow to Increase Productivity in Safety Cables Only ceramifiable INTEGRISIL silicone forms a hard insulating ceramic, under fire conditions Increase manufacturing productivity up to 700% Exhibit superior flexibility in assembly Allow for weight reduction processed up to 700 m/min (2100 ft/min) one step process any length jacket : copper cladding, silicone rubber or cross-linked PE conductor Insulation: ceramifiable silicone no mica tape needed! bedding: ceramifiable silicone, silicone/epdm blend Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 13

15 INNOVATION BASED ON WATER REPELLENCY AND DURABILITY OF SILICONES DRIVES GROWTH AND PROTECTS THE ENVIRONMENT Superior Building Protection with Silicone Resin Emulsions Problem Severe damages on buildings caused by water penetration Solution SILRES BS Protective coatings with unique properties Example: Beijing Airport Hydrophobic surface Breathable Water repellent Abrasion resistant Vapor Water Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 14

16 PRODUCT DEVELOPMENT DIRECTLY FOR EMERGING MARKETS: SINGLE RINSE SILFOAM HELPS TO REDUCE WATER CONSUMPTION Silicone antifoams for single rinse softeners Application developed for countries with big hand-wash-market and problems in water supply Usage of silicon-based antifoams reduces water-consumption Combined with softener, SILFOAM reduces the number of rinses from 3-4 times to 1 time Product is placed in South-East-Asia, Mexico and South America Source: Pictures and Trademarks are owned by P&G and Unilever Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 15

17 FUMED SILICA: FOR EFFICIENT BONDING PASTES Problem: higher energy yields with wind turbines demanded longer and heavier blades required different materials: polar systems Solution: Fumed Silica (HDK ) used in bonding rotor blades high viscosity storage stability less tendency to embrittle Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 16

18 DEVELOPING NEW MARKETS: SILICONES IN ENERGY SAVING LEDS* Improved Performance and Energy Efficiency Unique Properties of Silicones for High Brightness LEDs Silicone Encapsulent Up to 50% energy savings with LED lighting compared to traditional sources Highly increased lifetime Extremely robust against mechanical stress Allows highly flexible lighting solutions due to instant switchability of color and tone * LED = Light Emitting Diode Silicone Advantages Perfectly resistant against UV-Light from blue and white LEDs Superior heat resistance for high brightness and improved process ability (lead free soldering at 260 C) Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 17

19 HIGH CONCENTRATED PHOTOVOLTAIC TECHNOLOGY: SILICONE ELASTOMERS PROVIDE LONG TERM STABILITY Glass Fresnel-lense (silicone) Secondary optics Solar cell Technology Concentrator cells focus light on to a small area using an optic concentrator such as a Fresnel lens High efficiency (some concentrator modules with > 24 %) and lower electricity generation costs Benefits of WACKER ELASTOSIL Solar High stability against weathering and mechanical stress to the surface The glass-silicone-combination is very stable, even at high and changing temperatures High long term stability against all influences that can occur High reliability and long life span of the primary optics in the concentrator module Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 18

20 SILICONES: LEVERAGING INNOVATION TO CREATE VALUE ON MULTIPLE LEVELS Capex Intensity Upstream Downstream Siloxan, Fumed Silica Formulation and compounding according to market requirements Centralisation De- Centralisation Additives Oils Resins Emulsions Silane Industries Customer Orientation Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 19

21 POLYMERS: MARKET LEADER IN VAE BASED BINDERS FOR DIVERSE APPLICATIONS POLYMERS Performance* Strong growth in VAE-based products Sales in m Volume (indexed) Production volumes Burghausen Powder 100 CAGR % e EBITDA Margin Key enabling materials 19.0% 16.9% 12.5% 15.8% e Construction Paints & Coatings Consumer Care Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 20 *incl. structural chances: APP, PVB, Gumbase

22 BIOSOLUTIONS: INGREDIENTS AND SOLUTION PROVIDER FOR THE FOOD AND PHARMA MARKET BIOSOLUTIONS Performance Sales in m Volume (indexed) Solutions for Nutrition and Pharma Cyclodextrin CAGR % e EBITDA Margin Attractive specialty markets 9.3% 8.5% 9.4% 9.4% e Nutrition Chewing Gum Pharma HSBC Small- and Midcap Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 21

23 POLYSILICON: A RELIABLE PARTNER FOR GROWTH POLYSILICON Performance Annual Poly Production of POLYSILICON Sales in m 1,365 * Volume (indexed) 1, CAGR : 14.7% CAGR : 34.6% Source: WACKER estimates e EBITDA Margin 39.9% 36.3% 51.0% 46.5% 52.5% * Cost Leadership Secures Growth e *preliminary data Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 22

24 SUPPORTING MARKET GROWTH AS A MARKET LEADER Expected Production in MT Capacity Development (p.a.) ~30,000 32,000 MT Current production rate at Burghausen 11,900 18, ,000 MT Poly 9 Ramp at Nünchritz (starts end of 2011) + 15,000 MT New Poly 11 facility in Tennessee (starts 2014) + debottlenecking options e Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 23

25 STRONG MARKET ENVIRONMENT - WACKER POLYSILICON NOW CONTRACTED THROUGH 2013 Number of new contracts Price Duration of Contracts Individual contract volume Prepayments Customers secure attractive prices on a more long-term basis Customers with increased capacities secure raw material supply 2 GW require ~15 kt p.a. polysilicon Cell players expect wafer producers to use poly from high-quality suppliers Customers demanding high quality for high yield production Strong end market demand growth Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 24

26 SILTRONIC: MANAGING A VOLATILE GROWTH MARKET SILTRONIC Performance Semiconductor Industry Growth Sales in m 1,263 1,452 1,361 1,025 * 60,000 45,000 Mio. cm² p.a ,000 15, e EBITDA Margin 32.9% 28.2% 26.3% 6.7% * e A Strong No. 3 in the Market Source: Gartner estimates June 2010 Number of suppliers per diameter -25.5% e *preliminary data Dr. Carlos Weise, President WACKER SILICONES, February 1 st 2011, Slide 25

27 2010 NEW RECORD YEAR: VOLUME DRIVEN, HIGH CUSTOMER DEMAND Sales m EBITDA m 3,337 3,781 4,298 3,719 4,750* 1,002 1,055 1,190* e e *preliminary data Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 26

28 STRATEGIC FOCUS IS CLEARLY SET Creating Shareholder Value through: Market Penetration Operational Excellence Innovation Sustainability Enhance regional competencies Channels to market Strong customer support Structural changes when necessary Productivity focus and process excellence Global site network Megatrends drive innovation focus Differentiation lever New materials and applications beyond existing core Balance economic, environmental and social factors Integral part of production and processes Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 27

29 WACKER: ISSUER, CONTACT AND ADDITIONAL INFORMATION Wacker Chemie AG Hanns-Seidel-Platz 4 D Munich ISSUER AND CONTACT Investor Relations contacts Mr. Joerg Hoffmann Tel joerg.hoffmann@wacker.com Mrs. Judith Distelrath Tel judith.distelrath@wacker.com FINANCIAL CALENDER 03/16/11 - Full Year 2010 (4pm CET) 05/04/11 - Q1 Results /18/11 - Annual Shareholder Meeting 05/31/11 - Capital Markets Day 08/02/11 - Q2 Results /28/11 - Q3 Results 2011 Mrs. Manuela Ellmerer Tel manuela.ellmerer@wacker.com ISIN: WKN: Deutsche Börse: Ticker Bloomberg: Ticker Reuters: Listing: ADDITIONAL INFORMATION DE000WCH8881 WCH888 WCH CHM/WCH.GR CHE/WCHG.DE Frankfurt Stock Exchange Prime Standard Dr. Carlos Weise, President WACKER SILICONES, February 1st 2011, Slide 28