EANS-News: Chemical-Business Growth and Lower Polysilicon Prices Characterize WACKER's Fiscal 2012

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Subtitle: - Based on preliminary figures, year-on-year sales down
just under 6 percent at €4.63 billion - EBITDA of €787 million 29
percent below prior-year figure - EBIT of €258 million for full-year
2012, with net income at €107 million - CEO Rudolf Staudigl: “We are
pleased with our chemical divisions’ performance last year, but it
couldn’t fully offset the decline in polysilicon prices”

Financial Figures/Balance Sheet

Munich (euro adhoc) - February 7, 2013 - As expected, Wacker Chemie
AG generated lower sales and earnings in 2012 than in the prior year.
According to preliminary calculations, the Munich-based chemical
group achieved total sales of EUR4.63 billion in 2012 (2011: EUR4.91
billion), almost 6 percent below the prior-year figure. The decline
is chiefly due to lower prices for polysilicon and semiconductor
wafers. Altogether, price effects reduced 2012's consolidated sales
by EUR700 million, or by over 14 percent. The chemical divisions, in
contrast, actually increased their sales performance by 5 percent
overall, with higher volumes and positive exchange-rate effects
offsetting the impact of price competition.

Based on preliminary figures, earnings before interest, taxes,
depreciation and amortization (EBITDA) amounted to around EUR787
million (2011: EUR1.1 billion) - down 29 percent year over year.
Earnings before interest and taxes (EBIT) in 2012 reached EUR258
million (2011: EUR603 million) according to preliminary calculations.
The WACKER Group's net income for 2012 amounts to EUR107 million
(2011: EUR356 million).

The earnings decline is mostly due to the overcapacities affecting
the photovoltaic industry. Solar-silicon prices halved over the last
12 months. Strongly growing demand for polymers, however, helped
WACKER's chemical divisions increase their year-on-year EBITDA by
some 15 percent.

Investments and Net Financial Liabilities WACKER's capital
expenditures amounted to some EUR1.1 billion in 2012 (2011: EUR981
million) according to preliminary figures. The major part of
investments was dedicated to new facilities for producing hyperpure
polysilicon. Additional funds flowed into the expansion of production
capacities for polymer dispersions and polyvinyl acetate solid resins
in China and South Korea. Capital expenditures also went into pro
rata financing of WACKER's siloxane-production joint venture with Dow
Corning in China. WACKER funded its investments out of its operating
cash flow, as well as from customer advance payments and borrowed
funds. The Group's net financial liabilities amounted to about EUR701
million as of December 31, 2012 (Dec. 31, 2011: net financial
receivables of EUR96 million).

"Last year's capital expenditures were the highest in the history of
the WACKER Group," said CFO Joachim Rauhut. "By investing in
particularly capital-intensive plants, we reinforced our strategic
footing as one of the market leaders in silicon and silicone
chemistry. These investments are now largely complete. That's why we
expect our 2013 investments to come down by almost 50 percent
compared to 2012, thus approaching our level of depreciation which is
at EUR550 million. This will significantly benefit our cash flow."

Business Performance in Q4 2012 During Q4 2012, the WACKER Group's
business was shaped by the usual seasonal influences and by
persistent price pressure on polysilicon and semiconductor wafers. In
total, Group sales from October through December 2012 amounted to
EUR1.02 billion (Q4 2011: EUR1.01 billion). Sales were thus in line
with the previous year's level. The Group's fourth-quarter EBITDA
reached EUR130 million, an increase of about 17 percent year over
year (Q4 2011: EUR111 million).

The chemical divisions continued to perform well between October and
December 2012, posting higher sales as well as higher earnings
compared with the prior year. Their sales in Q4 2012 totaled EUR647
million (Q4 2011: EUR606 million). This rise of just under 7 percent
stemmed in part from somewhat higher volumes than in 2011, and from
positive exchange-rate effects. EBITDA at the chemical divisions
amounted to roughly EUR44 million in Q4 2012 - an increase of EUR20
million from a year ago (Q4 2011: EUR24 million). "We are pleased
with our chemical divisions' performance last year, especially in
polymer products," said CEO Rudolf Staudigl. "Last year's sales and
earnings growth in these divisions underscores their stability and
effectiveness."

Semiconductor sales were slightly higher in the fourth quarter of
2012 than in the comparative prior-year period amid difficult market
conditions. In Q4 2012, Siltronic generated total sales of around
EUR185 million (Q4 2011: EUR180 million). Siltronic's EBITDA for
October through December 2012 amounted to EUR4 million (Q4 2011:
EUR-59 million). The prior-year figure had been weighed down by
obligations of about EUR50 million relating to the closure of the
Hikari site in Japan.

At WACKER POLYSILICON, fourth-quarter sales and earnings were held
back in particular by substantially lower year-on-year solar silicon
prices. The division posted total sales of EUR213 million in the
three months through the end of December 2012 (Q4 2011: EUR256
million) - a drop of just under 17 percent. In the same period,
EBITDA fell 53 percent to EUR78 million (Q4 2011: EUR165 million). Q4
2012 EBITDA included about EUR55 million resulting from retained
advance payments and damages relating to terminated customer
contracts. "In our polysilicon business, price pressure, high
inventory levels and the difficult financial situation of many market
players clearly left their mark on 2012," explained Staudigl. "Recent
weeks have provided encouraging signals indicating additional
photovoltaic expansion, especially in China and the USA. That could
result not only in improved volumes, but also in better prices for
solar silicon in the future. Yet, at the same time, we are still
facing the risk of a trade conflict between China and Europe in the
photovoltaic sector."

During the first four weeks of 2013, there have been no improvements
in the conditions underlying semiconductor-wafer business. Taking
into account the normal seasonal effects occurring in their business
during the winter months, WACKER's chemical divisions are reporting
continued strong demand.

The Q4 and fiscal 2012 figures and forecasts in this press release
are preliminary. Wacker Chemie AG will publish its Q4 Report and
Annual Report 2012 on March 14, 2013.

Further inquiry note:
Christof Bachmair
Media Relations & Information
Tel.: +49 (0)89 6279 1830
E-Mail: christof.bachmair@wacker.com

end of announcement euro adhoc
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company: Wacker Chemie AG
Hanns-Seidel-Platz 4
D-81737 München
phone: +49 (0) 89 6279 01
FAX: +49 (0) 89 6279 1770
mail: info@wacker.com
WWW: http://www.wacker.com
sector: Chemicals
ISIN: DE000WCH8881
indexes: MDAX, CDAX, Prime All Share
stockmarkets: free trade: Hannover, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing: Berlin, regulated dealing/prime standard:
Frankfurt
language: English