Issue 7/2019 - WACKER: In a challenging external environment, the fiscal ratio can continue to grow in 2019

WACKER held a press conference at its headquarters in Munich, Germany, March 19 to officially announce the company's financial data
for the full year 2018.
-As previously announced, WACKER increased sales slightly in 2018, but missed EBITDA targets
for interest, taxes, depreciation and amortization.

In 2018, WACKER generated sales of €4.
98 billion, up 1 percent
from the previous year.
Higher volumes and prices of the chemical business, especially silicone products, were the key reasons for the slight increase, which more than compensated for the increase in the euro against the dollar and the decline in polysilicon prices
.
EBITDA for the 2018 fiscal year was €930 million, down 8 percent
year-on-year.
The decline was mainly due to losses caused by the temporary shutdown of the Charleston site and the failure to receive accident insurance compensation from the site, as well as higher raw material and energy costs that significantly dampened profit development
.
Earnings before interest and taxes (EBIT) amounted to €389.
6 million, down 8 percent
year-on-year.
In 2018, WACKER's continuing income rose by 4 percent to €260.
1 million
.
Profit for the full year amounted to €260.
1 million, including €634.
7 million from Siltronic's separation from the WACKER Group
.

Despite the challenging external environment in fiscal 2019, WACKER expects to continue to grow, with sales expected to increase
by a mid-single-digit percentage.
The Group's EBITDA is expected to decrease by 10%~20% compared to 2018 due to the decline in the average price of polysilicon, the decline in the price of standard products and the increase
in energy costs.
Full-year profit is expected to be significantly lower than the previous year's level
.

In January and February, WACKER's chemical business was doing well, with sales in the chemical business slightly higher
than in the same period last year.
Sales in the polysilicon business in the first two months of this year were slightly lower than the same period last year, with a marked increase in sales volumes but a decline
in average prices.

Dr.
Staudix, President and CEO of WACKER, said: "2019 is going to be a challenging year
for now.
In the Chemicals business, we believe that our high-quality products will continue to drive growth
in the Chemicals business.
On the other hand, although our polysilicon quality is top quality and occupies a leading position in the market, the overcapacity of solar polysilicon in China has inhibited the development
of our polysilicon business and the Group's profits.
In addition, a sharp increase in electricity prices in Germany will place a significant burden
on energy-intensive companies such as WACKER.
In this context, we will make great efforts to further reduce costs
.
At the same time, we will further strengthen our chemical business
through targeted investments.
(Wei Kun)