EANS-News: WACKER Continues to Focus on Growth in Fiscal 2012

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Financial Figures/Balance Sheet

Subtitle: - Sales grow by 3 percent to €4.91 billion in 2011, EBITDA
reaches €1.1 billion - Following declining business toward year-end
2011, sales revenue and sales volumes rise in Q1 2012 - For full-year
2012, WACKER aims for consolidated sales of some €5 billion - 2012
EBITDA set to remain significantly below the prior-year level due to
lower polysilicon prices and continued high raw-material costs -
Investments of around €1 billion planned for further
production-capacity expansion

Munich (euro adhoc) - March 14, 2012 - Wacker Chemie AG finished
fiscal 2011 with sales-revenue and sales-volume gains. As announced
by the Munich-based chemical group upon presenting its Annual Report
today, consolidated sales rose by just over 3 percent to EUR4.91
billion (2010: EUR4.75 billion). The main factor behind this increase
was strong demand for WACKER products - particularly in the first
nine months of the year.

Earnings before interest, taxes, depreciation and amortization
(EBITDA) amounted to EUR1.1 billion (2010: EUR1.19 billion). High
raw-material costs, weak fourth-quarter business with polysilicon,
start-up costs for commissioning the new production facilities at
WACKER´s Nünchritz site (Germany) and various non-recurring effects
were the reasons for the decline of 8 percent in EBITDA year over
year. The EBITDA margin was 22.5 percent (2010: 25.2 percent).
Looking at the bottom line, WACKER ended 2011 with net income of
EUR356 million (2010: EUR497 million) - a drop of EUR141 million
compared to a year earlier. This amount contains structural costs of
some EUR50 million, relating to the announced closure of the Group´s
semiconductor site in Hikari, Japan.

Following a weak final quarter last year, WACKER´s business is
starting to recover. In Q1, 2012, the company expects to surpass
prior quarter´s sales, though it will not reach the level of the
strong Q1 2011.

In the current fiscal year, WACKER intends to increase sales slightly
- with a consolidated-sales target of approximately EUR5 billion. In
doing so, WACKER does expect the economic situation to remain
challenging until at least midyear. The Munich-based chemical company
foresees polysilicon prices considerably below their prior-year
level, as well as continued high raw-material costs. For these
reasons, 2012 EBITDA is forecast to be markedly below the prior-year
level.

"Our strategic focus is to continue growing organically," said CEO
Rudolf Staudigl in Munich on Wednesday. "This year, we are investing
around EUR1 billion - with a focus on production-capacity expansion
to meet rising customer demand. Even though substantial economic
uncertainties exist and underlying conditions are not easy, I am
optimistic that 2012 can be a successful year for WACKER."

Capital Expenditures The Group´s investments grew markedly in fiscal
2011, climbing by 41 percent to EUR981 million (2010: EUR695
million). Capital expenditures primarily went toward capacity
expansion for hyperpure polycrystalline silicon.

Last October, WACKER ramped up "Expansion Stage 9" of polysilicon
production at its Nünchritz site. The planned nominal capacity of
15,000 metric tons per year is expected to be reached in Q2 2012. In
2011, considerable progress was made with the construction of the
Group´s new polysilicon site at Charleston, Tennessee (USA). The
underground engineering work there is largely finished and
construction of the buildings is in full swing. The new site, with an
annual capacity of 18,000 metric tons, is scheduled for completion by
late 2013. The overall investment in this large-scale project amounts
to some $1.8 billion.

WACKER also expanded its production capacities for silicones in
Germany and Asia last year. At Burghausen, WACKER SILICONES invested
in a new plant for hyperpure silicone elastomers. The silicone
manufactured there is intended for applications in the medical and
electronics industries, for example. In Zhangjiagang, China, the
Group started up a further pyrogenic-silica production facility. And
in Kolkata, India, a new compounding plant for ready-to-use silicone
elastomers came on stream. India is one of the Group´s fastest
growing sales markets for silicone products. The silicone compounds
produced in Kolkata are supplied to the electrical, electronics and
automotive industries.

Further funds were invested in capacity expansion of the Siltronic
Samsung Wafer joint venture in Singapore, which manufactures 300 mm
silicon wafers for the semiconductor industry.

Employees As per year-end 2011, WACKER had 17,168 employees worldwide
(2010: 16,314) - up 854 year over year related to polysilicon and
silicone expansion activities. At year-end, WACKER´s German sites had
12,813 employees (2010: 12,235) and its international sites 4,355
(2010: 4,079).

Net Cash Flow, Net Financial Liabilities and Equity Ratio Despite
substantially higher investments, net cash flow was positive in 2011
at EUR6 million (2010: EUR422 million). Alongside cash inflow from
operating activities, WACKER benefited from advance customer payments
of over 150 million euros. In terms of net financial liabilities (the
balance of liquidity and financial liabilities), WACKER posted a
surplus of EUR96 million as per December 31, 2011 (2010: EUR264
million). WACKER´s total assets had continued to rise to EUR6.2
billion by year-end 2011 (2010: EUR5.5 billion). This 13-percent
increase was due to asset additions, higher inventories and trade
receivables stemming from stronger business volumes as well as
exchange-rate effects. On the balance-sheet date, equity amounted to
EUR2.63 billion (2010: EUR2.45 billion), resulting in an equity ratio
of 42.2 percent (2010: 44.5 per¬cent).

Business Divisions Siltronic posted a year-on-year total sales
decline due mainly to 2011´s weak fourth quarter. Sales dropped 3
percent to EUR992 million (2010: EUR1.02 billion). In Q4 2011,
inventory-reduction measures by customers and weak demand for silicon
wafers impacted sales volumes. While 300 mm wafer business grew
during full-year 2011, there was a slowdown in the 200 mm market and,
above all, in the small-diameter wafer segment. EBITDA, too, declined
against 2010, coming in 44 percent lower, at EUR49 million (2010:
EUR88 million). The figure includes expenses for the closure of the
Hikari site, which reduced EBITDA by some EUR50 million. Without this
charge, Siltronic´s EBITDA would have shown a year-on-year rise of
EUR11 million.

After 2010´s strong gain, 2011´s sales at WACKER SILICONES were up
again slightly by just under 1 percent to EUR1.59 billion (2010:
EUR1.58 billion). Higher sales volumes and prices were responsible
for this sales gain. Negative exchange-rate effects, though, dampened
business. Considerably higher raw-material costs, coupled with
exchange-rate effects, prevented EBITDA from matching the previous
year´s level. At EUR183 million, it was 20 percent below the 2010
figure (EUR230 million). Silicon-metal prices alone were 29 percent
higher than in 2010, while methanol prices climbed 18 percent.

WACKER POLYMERS´ total sales rose significantly last year - primarily
due to the construction-industry recovery and the substitution of
other technologies by vinyl acetate ethylene dispersions in the
carpet and packaging industries. Total sales climbed 15 percent to
EUR928 million (2010: EUR810 million). Despite the marked increase in
sales, EBITDA of EUR112 fell 9 percent short of the 2010 figure
(EUR123 million). Higher prices for ethylene and vinyl acetate
monomer (VAM) held back the division´s profitability in 2011.
Compared to the previous year, the cost of ethylene rose by almost 20
percent and VAM by more than 30 percent.

In 2011, WACKER BIOSOLUTIONS slightly increased total sales by just
under 2 percent to EUR145 million (2010: EUR142 million). Higher
prices compensated for lower volumes and negative exchange-rate
effects. WACKER BIOSOLUTIONS saw a decline in volumes for gumbase
resins and cyclodextrins. In contrast, biopharmaceutical business
grew. EBITDA was down 18 percent year on year to EUR20 million (2010:
EUR25 million).

In 2010, WACKER POLYSILICON rised total sales by 6 percent to EUR1.45
billion (2010: EUR1.37 million) as a result of higher sales volumes.
Demand for high-quality polysilicon was very strong in the first nine
months, with plants running at full capacity. In 2011´s fourth
quarter, though, there was a marked drop in demand. This reversal was
prompted by extreme overcapacity along the photovoltaic industry´s
supply chain and by initial consolidation within the sector. In 2011,
the division sold a total of 32,000 metric tons of polysilicon.
EBITDA grew 2 percent to EUR747 million (2010: EUR733 million), held
back by a weak fourth quarter and start-up costs for ramping up
production capacities at Nünchritz´s "Poly 9" expansion stage. In
contrast, EBITDA benefited from retained advance payments and
indemnity payments totaling EUR66 million resulting from terminated
agreements with customers withdrawing from the solar business.

Proposal on Appropriation of Profits In accordance with German
Commercial Code accounting rules, Wacker Chemie AG posted a retained
profit of EUR978.7 million in 2011. The Executive and Supervisory
Boards will propose a dividend of EUR2.20 (2010: EUR3.20) per share
at the Annual Shareholders´ Meeting. Based on the number
dividend-bearing shares as per December 31, 2011, the cash dividend
corresponds to a payout of EUR109.3 million. Based on the net income
allocable to Wacker Chemie AG´s shareholders, the resultant
distribution ratio is 31 percent.

Outlook The risks of an economic slowdown still exist. Assuming that
the sovereign-debt crisis does not worsen further, the company
anticipates global economic growth this year - with the strongest
impetus stemming from Asia again.

WACKER is currently experiencing sales-volume increases at its
polysilicon business. However, prices are well below the 2011 level.
For full-year 2012, WACKER POLYSILICON´s sales revenue are expected
to come in slightly lower year over year.

At its semiconductor division Siltronic, WACKER expects sales volumes
for 300 mm wafers to continue growing. That is why the Group intends
to further expand its capacity for this wafer diameter. Business for
smaller wafer diameters is likely to decline in the future. Thus,
Siltronic will realign production capacity for wafer diameters of 150
mm and 200 mm to suit market demand.

Turning to its chemical divisions, WACKER sees good prospects for
further growth in 2012, even though raw-material and energy costs
remain high. The rise in living standards in Asia is fueling demand
for high-quality products containing silicones. At its polymer
business, the Group expects higher sales volumes and prices during
2012. On the construction-applications front, growth is being driven
by Asian and South American markets. Dispersions are experiencing
additional demand, especially from the paper and carpet industries in
the USA. At WACKER BIOSOLUTIONS, too, sales are expected to rise this
year. The Group intends to strengthen this division´s market
leadership in polyvinyl acetate solid resins for use in gumbase.

WACKER intends to invest approximately EUR1 billion during the
current year to lay the foundation for its future growth.

Overall, WACKER is planning with the goal to generate sales of some
EUR5 billion in fiscal 2012. Its earnings performance will be
impacted by lower prices for solar-grade polysilicon, as well as by
the continued high cost of raw materials. This is why earnings before
interest, taxes, depreciation and amortization (EBITDA) in the
current fiscal year will probably be markedly below 2011´s level.

WACKER's Key Figures under http://www.wacker.com/cms/en/investor-rela
tions/berichte/reports2011/results2011/results2011.jsp

This press release contains forward-looking statements based on
assumptions and estimates of WACKER´s Executive Board. Although we
assume the expectations in these forwardlooking 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
forwardlooking 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: 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