WACKER CHEMIE AG CREATING TOMORROW'S SOLUTIONS
Q1 2024 - Conference Call Note
Dr. Christian Hartel (CEO), Dr. Tobias Ohler (CFO)
April 25, 2024
Disclaimer
The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements and information contained in this presentation may relate to 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, other words such as "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 the Company'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. The Company 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.
Front page: WACKER presents a range of selected silicone products for cosmetics and hair-care applications at this year's in-cosmetics Global. WACKER will be showcasing a formulation for water- and energy-savingleave-in hair lotions that no longer need to be rinsed out after shampooing. BELSIL® eco EG 3001 won the prestigious Fountain Award at the PCHi trade fair in China.
Q1 2024 - Conference Call Note | 1 |
April 25, 2024 | |
WACKER Q1 2024 Highlights
Financials
Operations Sustainability
€1.49bn
Sales (-15% yoy)
Driven by lower prices
€172m | 11.6% | |
EBITDA | EBITDA Margin | |
(Q1/23: €281m) | (Q1/23: 16.1%) | |
€48m | €308m | |
Net Income | Net Debt | |
(Q1/23 €147m) | (31.12.23: €84m) | |
Higher Chemicals
Demand
Customer restocking drives volume improvements
Lower Energy Costs
Support higher qoq EBITDA in
POLYSILICON
Efficiency Measures
Ongoing focus on costs and driving specific operating costs lower
Silicone Gel Wins
Sustainability
Award
BELSIL® eco EG 3001 wins the prestigious Fountain Award at the PCHi1 trade fair in China
The new silicone elastomer gel consists of >80% renewable raw materials
Q1 2024 - Conference Call Note April 25, 2024
1) PCHi =Personal Care and Homecare Ingredients
2
Annual WOS1 Conference
4 Projects Awarded for Improving Efficiency & Lowering Spec. Operating Costs
SILICONES | POLYMERS | BIOSOLUTIONS | POLYSILICON |
Burghausen
- New steam production Verbund (integrated production)
- Reduction of 26,000t CO2 per annum
Nanjing
- Optimization of steam production by leveraging waste gas incineration
- Reduction of 13,500t CO2 per annum
Amsterdam | Burghausen | ||
Higher utilization rates | Improved processes | ||
Improved maintenance | Higher output in Semi | ||
cleaning | |||
1) WOS = WACKER Operating System
Q1 2024 - Conference Call Note April 25, 2024
3
Profit & Loss Statement
EBITDA of €172m in Q1 2024 - YoY lower but Sequentially Higher
Profit & Loss (€m)
Q1 2024 | Q1 2023 | |
Sales | 1,490 | 1,744 |
Gross profit from sales | 211 | 329 |
Gross margin | 14.2% | 18.9% |
EBITDA | 172 | 281 |
EBITDA margin | 11.6% | 16.1% |
EBIT | 63 | 178 |
EBIT margin | 4.2% | 10.2% |
Net income | 48 | 147 |
EPS | 0.89 | 2.90 |
Q1 Comments
-
Sales -15% yoy
Volume/Mix +4%, Price -17%, FX -1% - EBITDA -39% yoy
Performance defined by lower prices yoy.
EBITDA higher qoq due to seasonality, customer restocking and year-end effects holding Q4/23 back.
69 | -15% | ||||||||||
1,744 | -19 | 1,490 | |||||||||
-305 | |||||||||||
Sales Volume/Mix Price | FX | Sales |
Q1 2023 | Q1 2024 |
Q1 2024 - Conference Call Note | 4 |
April 25, 2024 | |
Balance Sheet Composition
Resilient Financials with €4.7bn in Equity and €1.3bn in Liquidity
Balance sheet (%)
Assets
€8.9bn €9.0bn
51%52%
16% | 17% |
17% | 18% |
16% | 14% |
12/31/23 | 3/31/24 |
Fixed Assets
Inventories
Receivables
Cash / Securities
Liabilities
€8.9bn €9.0bn
52%52%
13% | 12% |
17% | 17% |
18%19%
12/31/23 3/31/24
Equity
Provisions
Financial Liabilities Liabilities
Characteristics 3/31/24
-
Cash & Securities:
High level of liquidity at about €1.3bn - Working Capital:
+€200m higher due to seasonal higher sales and preparations for turnaround in Q2 - Pension Provisions:
Slightly lower at €800m on higher discount rates - Shareholder Equity:
+€134m higher at €4.7bn
Q1 2024 - Conference Call Note | 5 |
April 25, 2024 | |
SILICONES
Q1/24 EBITDA at €81m on Customer Restocking, Outlook Raised
Sales (€m)
-7%
760 | 699 | 673 | 610 | 710 | ||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||
EBITDA (€m) / margin | ||||||||||
-15% | ||||||||||
96 | 81 | |||||||||
52 | 51 | 37 | ||||||||
12.6% | 7.4% | 7.6% | 6.1% | 11.4% | ||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||
CapEx (€m) | ||||||||||
+€1m | 98 | |||||||||
55 | ||||||||||
40 | 49 | 41 | ||||||||
Comments Q1
- Improved specialties demand yoy and qoq, mainly on customer restocking
- Prices for standards at low levels
-
EBITDA supported by better plant loading,
lower raw material costs and at-equity contribution - Preparations underway for turnaround in Q2
FY 2024 Outlook Updated
- Sales on PY level, with a high-single-digit % EBITDA margin
- Sales in all regions at PY level
- Higher volumes in Specialties
- Good start, but uneven order patterns remain
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 |
Q1 2024 - Conference Call Note | 6 |
April 25, 2024 | |
POLYMERS
Q1/24 EBITDA at €56m, Volumes Up QoQ with Seasonality in Construction
Sales (€m)
-13%
428 | 417 | 393 | 342 | 372 | |||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | |||||
EBITDA (€m) / margin | |||||||||
76 | -21% | ||||||||
75 | |||||||||
71 | 56 | ||||||||
32 | |||||||||
16.6% | 18.1% | 19.0% | 15.0% | ||||||
9.3% | |||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | |||||
CapEx (€m) | |||||||||
-€1m | 30 | ||||||||
17 | |||||||||
13 | 14 | 13 | |||||||
Comments Q1
- Prices lower yoy, but overall stable qoq
- Volumes seasonally up qoq & higher yoy
- EBITDA higher qoq with improved asset utilization rates
- Soft demand from Europe and China, but stronger in Asia (ex China) and Americas
FY 2024 Outlook Unchanged
- Sales lower (high-single-digit %) than PY with an EBITDA margin of around 15%
- Lower ASP at slightly higher volumes in Dispersions and stable volumes in DPP, regional dynamics unchanged to PY
- Construction markets expected to remain soft in 2024
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 |
Q1 2024 - Conference Call Note | 7 |
April 25, 2024 | |
BIOSOLUTIONS
Q1/24 EBITDA at €5m, New mRNA Facility Scheduled for Start Up Mid-Year
Sales (€m)
91 | -6% | 93 | |||||||||
77 | |||||||||||
77 | 72 | ||||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | |||||||
EBITDA (€m) / margin | |||||||||||
+€6m | 12 | ||||||||||
5.9% | 5 | ||||||||||
5.9% | 12.6% | ||||||||||
6.4% | |||||||||||
-1 | |||||||||||
-2 | -3 | ||||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | |||||||
CapEx (€m) | |||||||||||
-€1m | 66 | ||||||||||
35 | 40 | ||||||||||
15 | 14 | ||||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 |
Comments Q1
- BioIngredients with strong sales growth yoy, Life Sciences Chemicals lower
- EBITDA supported by better product and contract mix
- Demand for established products improved
FY 2024 Outlook Unchanged
- Sales approx. 10% higher than PY with a significantly higher EBITDA
- Sales growth driven by BioPharma and BioIngredients
- Growth in sales and earnings in H2/24
Q1 2024 - Conference Call Note | 8 |
April 25, 2024 | |
POLYSILICON
Q1/24 EBITDA Higher QoQ at €43m, Lower Energy Costs Support the Result
Sales (€m)
513 | -32% | |||||||||
441 | 342 | 303 | 300 | |||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||
EBITDA (€m) / margin | ||||||||||
156 | -56% | |||||||||
98 | 6.8% | |||||||||
14.5% | ||||||||||
46 | 21 | 43 | ||||||||
22.2% | 30.5% | 13.5% | ||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 |
CapEx (€m)
+€12m
82
22 | 32 | 29 | 34 | |||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 |
Comments Q1
- Sales and EBITDA down yoy on significantly lower Solar ASPs
- EBITDA supported by lower energy costs qoq, sequentially also higher as year-end effects impacted Q4
- Resilient Semi prices,
ongoing Solar market price differentiation
FY 2024 Outlook Unchanged
-
Sales in the range of €1.3 - 1.6bn,
with an EBITDA in the range of €200 - 400m - Higher production volumes, continued growth in Semi
- Mix improvement and continued cost reductions
Q1 2024 - Conference Call Note | 9 |
April 25, 2024 | |
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Wacker Chemie AG published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2024 14:18:04 UTC.
