30-Mar-2022 - Wacker Chemie AG

Targets for 2030: WACKER Accelerates Growth with High Profitability

Growth will double, sales should exceed €10 billion

At the Capital Market Day in London, Wacker Chemie AG presents its new strategic growth targets. By 2030, the company aims to lift sales significantly while keeping profitability high. The annual sales growth rate – the result of higher volumes and a better product mix – should reach between 1.5 and two times the historic rate of 4 to 5 percent per year. In 2030, sales should exceed €10 billion.

WACKER is aiming for an EBITDA margin of over 20 percent by the end of the decade. Based on capital employed, the company has set itself ambitious new goals. For ROCE (return on capital employed), the company wants to earn two times its cost of capital. In 2021, the cost of capital was 10 percent before taxes. Strong customer demand, especially in chemicals, is the basis of its growth strategy, and WACKER aims to consistently satisfy demand. Sustainability plays an important role here. Demand for sustainable products is constantly growing. They already make up more than two-thirds of the portfolio and, in the coming years, are expected to become an even stronger sales and earnings engine. At the same time, WACKER is investing in its goal of halving its absolute CO2 emissions by 2030.

“WACKER returned to a growth trajectory last year. We finished 2021 with record sales and strong earnings – despite headwinds from raw materials and energy. We want to maintain this momentum and are charting our course for accelerated growth going forward,” announced WACKER’s CEO Christian Hartel. By setting new strategic growth targets, the Munich-based chemical company is exiting the “leverage phase” that started in 2013, where capital expenditures were below depreciation. “We are ideally positioned to achieve our goal of accelerated growth. We have the right products and solutions. Our team is competent and committed. We help customers become more sustainable. And we have a solid financial position. This is the basis for our success,” said the CEO. “In our chemical divisions, our focus is on specialties and we achieve high margins. In our biotechnology business, we have expanded our portfolio through innovations and acquisitions, establishing ourselves as a strong and reliable partner in highly promising growth markets. Our polysilicon division is a global leader in quality and efficiency – both for semiconductor-grade and solar-grade polysilicon,” explained Hartel. At the same time, he added, the company was very well positioned on the cost side. “Multiple efficiency programs have given us a good cost basis and will help us remain competitive in the future. Our strong balance sheet illustrates WACKER’s financial stability,” Hartel noted. “Amid strong customer demand, we are entering a growth phase, where we will focus on organic growth, but also invest in acquisitions. We have set ourselves ambitious goals: we want to double sales growth – which is driven by higher volumes and a better product mix – while maintaining our high profitability,” said the CEO.

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