EANS-News: WACKER Resumes Growth Course after the Crisis Year of 2009

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Subtitle: - Sales-volume and revenue upturn continues in early 2010
- Consolidated sales should exeed €4 billion in 2010, with substantially
positive net income
- Fiscal year 2009 sales dropped to €3.72 billion (2008: €4.30 billion)
- 2009 EBITDA reached €607 million (2008: €1.06 billion)
- Net result fell to €-75 million (2008: €438 million) due to non-recurring
charges
- Dividend of €1.20 proposed

Munich (euro adhoc) - March 24, 2010 - Wacker Chemie AG forecasts substantial
sales and earnings gains for the current year. The Munich-based chemical company
reported today that the upturn recently seen in its business fields is ongoing.
After the global economic crisis sent customer demand plummeting in early 2009,
sales volumes steadily recovered during the rest of the year. However, they did
not attain 2008´s level. The volume decline - coupled with lower prices -
brought consolidated sales down 14 percent to EUR3.72 billion in 2009 (2008:
EUR4.30 billion).

Earnings fell even further. 2009´s earnings before interest, taxes, depreciation
and amortization (EBITDA) decreased to EUR607 million (2008: EUR1.06 billion).
The main cause was the weak trend in the Group´s semiconductor segment, where
EBITDA dropped EUR520 million against 2008. Additionally, non-recurring charges
reduced WACKER´s EBITDA by EUR160 million. These charges comprise investment
expenses due to exiting the solar-wafer business, an addition to pension
provisions, and provisions for additional phased-early-retirement quotas, for
working-life accounts and for personnel measures at WACKER SILICONES and
Siltronic. Moreover, earnings before interest and taxes (EBIT) were impacted by
fixed-asset impairments totaling EUR176 million. Overall, WACKER´s net result
for the year fell to EUR-75 million (2008: EUR438 million).

In the first two months of 2010, every division reported continuing sales-volume
gains. In January and February, consolidated Group sales were higher compared
both to the prior-year period and to the monthly average in Q4 2009. Provided
that the rebound continues during the rest of the year, WACKER predicts that
2010´s sales will cross the four-billion-euro mark. Net income for the year,
according to the latest forecasts, is expected to be substantially positive.

"WACKER reported a sound operating performance for 2009 and has resumed a growth
trajectory," said Group CEO Rudolf Staudigl this Wednesday in Munich. "Adjusted
for non-recurring charges, we generated good EBITDA figures in every division
apart from Siltronic. The demand recovery benefits not only our chemical
divisions, but also our semiconductor activities. In our polysilicon segment,
demand remains consistently high and we can sell our entire output on the market
at attractive prices. Our Group´s financial condition remains extremely good and
the global trends that drive product demand are unchanged. All these are
fundamental factors to generate substantial sales and earnings growth this
year."

Investments
The Group´s investments stayed at a high level in 2009. Asset additions reached
EUR740 million (2008: EUR916 million). The resulting investment ratio in
relation to sales was 20 percent. Spending was mainly on production plants for
polysilicon, siloxane and dispersible polymer powders.

2009´s primary investment focus was on expanding production capacities for
hyperpure polycrystalline silicon. WACKER started up "Expansion Stage 8" in
Burghausen. The facility should ramp to its planned nominal capacity of 10,000
metric tons annually during the second quarter of 2010. At Nünchritz, the
construction of a new polysilicon plant also progressed well in 2009. It should
come on stream before the end of 2011, again with an annual nominal capacity of
10,000 metric tons.

In Nanjing (China), WACKER officially opened a new polymers site last November.
Here, the Group produces dispersible polymer powders and dispersions for the
Chinese market - especially for the construction industry. With a polymer-powder
capacity of 30,000 metric tons per year, the Nanjing plant is the largest of its
kind in China. As a result, WACKER can now meet the rapidly accelerating demand
for polymer powders - particularly for energy-saving building insulation -
through local production facilities.

Employees
At the end of 2009, WACKER had 15,618 employees worldwide, 304 fewer than in
2008. The payroll decline stems from personnel measures to mitigate the effects
of the economic crisis on the Group. On December 31, 2009, WACKER´s German sites
had 11,925 employees and its international sites 3,693.

Net Cash Flow, Net Financial Liabilities and Equity Ratio
In 2009, net cash flow was EUR-33 million, down EUR55 million (2008: EUR22
million). The decrease was mainly due to the Group´s substan¬tially reduced net
result for the year, to lower advance customer payments against 2008, and to the
continued high level of invest¬ments in strategic growth projects. Net financial
liabilities were EUR76 million on December 31, 2009. In 2008, there had been a
liquidity surplus of EUR33 million. The Group´s total assets on December 31,
2009 were only slightly lower than at the end of 2008, dropping by just under 2
percent to EUR4.54 billion (2008: EUR4.63 billion). On the reporting date,
equity amounted to EUR1.94 billion (2008: EUR2.08 billion). The main reason for
the decline was the net loss recognized for the year. As a result, the equity
ratio was 42.8 percent (2008: 45.0 percent).

Business Divisions
In 2009, sales at Siltronic were EUR638 million, 53 percent below the previous
year (2008: EUR1.36 billion). The primary hurdles were weak semiconductor-sector
demand for silicon wafers and a decline in sales of silicon monocrystals and
other materials to the solar industry. Additionally, continued price pressure
for all wafer diameters burdened Siltronic´s business. 2009´s divisional EBITDA
was EUR-162 million (2008: EUR357 million). As announced in early July 2009,
Siltronic has introduced a lead-site strategy to optimize production and make it
more flexible, cut costs and boost productivity. Siltronic is pushing ahead with
customer qualification of the wafers produced at its designated lead sites so
that it can meet customer needs from these locations in the future.

In 2009, total sales at WACKER SILICONES were down on the prior-year level -
dropping 12 percent to EUR1.24 billion (2008: EUR1.41 billion). After a weak
start to 2009, sales began to rise from the second quarter onward. The gains
during the year, however, did not fully compensate for the considerable
shortfall back in Q1. Demand weakness left some production capacities
underutilized. On the EBITDA front, the downtrend was less pronounced. At EUR158
million (2008: EUR168 million), EBITDA fell 6 percent against 2008. Earnings
profited from cost savings and lower energy and raw-material costs, but were
hampered by reduced sales volumes and increased price pressure.

WACKER POLYMERS´ total sales declined in 2009, too - down 14 percent to EUR744
million (2008: EUR868 million). The main reason was lower sales volumes for
dispersible polymer powders and dispersions. The division, however, improved its
EBITDA, which reached EUR117 million (2008: EUR109 million). While earnings
benefited from cost-savings and lower energy and raw-material costs, they were
impeded by weaker prices.

WACKER POLYSILICON again generated sales gains in 2009. Up 35 percent to EUR1.12
billion (2008: EUR828.1 million), total sales crossed the billion-euro mark for
the first time. Growth was fueled by additional Burghausen production volumes,
which were successfully placed on the market. Polysilicon output rose over 50
percent from 2008, reaching 18,100 metric tons. Divisional EBITDA also climbed
substantially. At EUR521 million, it rose a good 23 percent against the previous
year (2008: EUR422 million). One factor weighing on EBITDA was WACKER´s exit
from the WACKER SCHOTT Solar (WSS) joint venture. The pro rata loss and
exit-related expenses reduced WACKER POLYSILICON´s investment result by EUR52
million. On top of this, lower polysilicon prices for short-term deliveries
hampered business in 2009. Moderate operating costs and high capacity
utilization, though, bolstered the full-year earnings trend.

In 2009, WACKER FINE CHEMICALS increased total sales by over 7 percent to EUR105
million (2008: EUR98 million). Growth was largely driven by its gumbase
business, which was transferred from WACKER POLYMERS to WACKER FINE CHEMICALS
effective July 1, 2009. This reorganization has strengthened the division´s food
and food-supplements business. EBITDA reached EUR10 million, up 8 percent year
over year (2008: EUR9 million). The division intensified its focus on
biotechnology. As of January 1, 2010, it has also changed its name to WACKER
BIOSOLUTIONS.

Proposal on Appropriation of Profits
In accordance with commercial-law requirements, Wacker Chemie AG posted a
retained profit of EUR533.4 million in 2009. The Executive and Supervisory
Boards will propose a dividend of EUR1.20 per share at the Annual Shareholders´
Meeting. Based on the number of dividend-bearing shares as per December 31,
2009, the cash dividend corresponds to a payout of EUR59.6 million. Calculated
in relation to WACKER´s average share price in 2009, the dividend yield is 1.4
percent. At the Annual Shareholders´ Meeting, the Executive and Supervisory
Boards will propose treating the remaining amount as profit carried forward.

Outlook
After the sharp downturn of late 2008 and early 2009, the world economy is back
on a moderate growth path. According to analysts, this upturn will continue
during the current year. The trend, WACKER anticipates, will be somewhat subdued
in Europe and the USA. The outlook for Asia is quite different. Gross domestic
product there is expected to grow strongly, especially in China.

The semiconductor-market recovery will continue in 2010, positively affecting
plant utilization and probably prices, too. WACKER assumes that these trends
will enable Siltronic to generate sales growth. At the same time, WACKER will
press on with its efforts to increase productivity and cut costs in its
semiconductor segment. To do this, WACKER continues to focus on Asia which is
the largest wafer market and has prioritized greater production-process
flexibility. The goal is to counter demand fluctuations by utilizing capacities
fully at the sites with the best cost structures. Consequently, Siltronic
introduced a new lead-site strategy in mid-2009. As a result, it has
discontinued 150 mm wafer production at Freiberg and transferred these
production volumes to Burghausen. In the 300 mm wafer segment, Siltronic is
focusing production at Freiberg and Singapore. Singapore is also the lead site
for 200 mm wafers. Siltronic plans to additionally improve its productivity via
a further reduction of its overhead costs.

WACKER SILICONES´ sales revenues are expected to climb in 2010. Growth will
mostly stem from Asia, where demand for silicone products will continue to rise.
At WACKER POLYMERS, sales-volume should increase in 2010, with Asia again as the
fastest-growing market. WACKER BIOSOLUTIONS´ full-year sales revenues are
expected to grow at a double-digit percentage rate.

WACKER expects that its hyperpure polycrystalline silicon business will
experience further growth on both the production-volume and demand sides. During
the second quarter of 2010, the Group intends to ramp up Burghausen´s "Expansion
Stage 8" to its planned nominal capacity of 10,000 metric tons annually.
Similarly, WACKER will press on with building its new polysilicon plant at
Nünchritz. As a global quality and cost leader, WACKER sees good opportunities
for its polysilicon business to generate continued, profitable growth, even amid
decreasing prices. Additionally, WACKER POLYSILICON has secured a large part of
its polysilicon production volumes through long-term agreements. In total,
WACKER plans to invest between EUR600 million and EUR700 million during the
current year - the lion´s share being for ongoing polysilicon expansion
projects.

Provided that the economic upturn continues for the rest of the year, WACKER
expects consolidated sales to cross the four-billion-euro mark in 2010. From
today´s vantage point, net income for the year should be substantially positive.

WACKER´s Key Figures
| |2009 |2008 |Change |
| | | |in % |
|Results / Return | | | |
|Sales EUR million |3,719.3 |4,298.1 |- 13.5 |
|EBITDA EUR million |606.7 |1,055.2 |- 42.5 |
|EBIT EUR million |26.8 |647.9 |- 95.9 |
|Net result for the yearEUR million|- 74.5 |438.3 |> 100 |
|Earnings per share EUR |- 1.43 |8.84 |> 100 |
|ROCE % |0.9 |25.7 |- 96.5 |
| | | | |
|Statement of Financial Position / | | | |
|Statement of Cash Flows | | | |
|Total assets EUR million |4,541.9 |4,625.1 |- 1.8 |
|Equity EUR million |1,942.4 |2,082.8 |- 6.7 |
|Equity ratio % |42.8 |45.0 |- 4.9 |
|Investments (incl. financial |740.1 |916.3 |- 19.2 |
|assets) EUR million | | | |
|Depreciation (incl. financial |579.9 |407.3 |42.4 |
|assets) EUR million | | | |
|Net cash flow EUR million |- 32.9 |21.7 |> 100 |
| | | | |
|Research and Development | | | |
|Research and development expenses |164.0 |163.2 |0.5 |
|EUR million | | | |
| | | | |
|Employees | | | |
|Personnel expenses EUR million |1,090.3 |1,086.0 |0.4 |
|Employees (December 31) Number |15,618 |15,922 |- 1.9 |

This press release contains forward-looking statements based on assumptions and
estimates of WACKER´s Executive Board. Although we assume the expectations in
these forward-looking statements are realistic, we cannot guarantee they will
prove to be correct. The assumptions may harbor risks and uncertainties that may
cause the actual figures to differ considerably from the forward-looking
statements. Factors that may cause such discrepancies include, among other
things, changes in the economic and business environment, variations in exchange
and interest rates, the introduction of competing products, lack of acceptance
for new products or services, and changes in corporate strategy. WACKER does not
plan to update the forward-looking statements, nor does it assume the obligation
to do so.

Further inquiry note:
Christof Bachmair
Media Relations & Information
Tel.: +49 (0)89 6279 1830
E-Mail: [email protected]
end of announcement euro adhoc
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issuer: Wacker Chemie AG
Hanns-Seidel-Platz 4
D-81737 München
phone: +49 (0) 89 6279 01
FAX: +49 (0) 89 6279 1770
mail: [email protected]
WWW: http://www.wacker.com
sector: Chemicals
ISIN: DE000WCH8881
indexes: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX, Prime All
Share
stockmarkets: regulated dealing/prime standard: Frankfurt
language: English

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