Wacker Chemie : Online Annual Report 2022

Goals Until 2030 - Charting a Strategic Course for Corporate Success

Annual Report

2022

For Our Shareholders - WACKER at a Glance

In its capacity as an innovative chemical company, WACKER makes a vital

­contribution to improving the quality of life around the world. We want to continue developing and supplying solutions that meet our own expectations - namely to add value for our customers and shareholders, and to achieve sustainable growth.

WACKER at a Glance

	€ million		December 31, 2022		December 31, 2021		Change in %
	Results/return
	Sales	8,209.3	6,207.5	32.2
	EBITDA1			1,538.5	35.3
	2,080.9
	EBITDA margin2 (%)			24.8		n.a.
	25.4
	EBIT3			1,134.3	48.0
	1,678.8
	EBIT margin2 (%)			18.3		n.a.
	20.5
	Financial result				-40.7	53.8
		-62.6
	Income before income taxes			1,093.6	47.8
	1,616.2
	Net result for the year			827.8	54.8
	1,281.6
	Earnings per share (basic/diluted) (€)			16.24	55.0
	25.18
	ROCE (%)			28.3	22.6
	34.7
2	Financial position / cash flow
Total assets	9,401.4	8,134.3	15.6
	Equity			3,100.4	62.3
	5,030.7
	Equity ratio (%)			38.1		n.a.
	53.5
	Financing liabilities			1,436.8	7.7
	1,547.0
	Net financial assets4			546.5		-25.1
	409.2
	Capital expenditures5			343.8	59.0
	546.8
	Depreciation/amortization				-404.2		-0.5
		-402.1
	Net cash flow6			760.8		-42.3
	438.8
	Research and development
	Research and development expenses	178.4	164.2	8.6
	Employees
	Personnel expenses	1,595.0	1,475.1	8.1
	Employees (December 31, number)			14,406	9.2
	15,725

1. EBITDA is EBIT before depreciation and amortization.
2. Margins are calculated based on sales.
3. EBIT is the result from continuing operations for the period before interest and other financial result, and income taxes.
4. Sum of cash and cash equivalents, noncurrent and current securities, and noncurrent and current financial liabilities.
5. Intangible assets, property, plant and equipment, investment property, excluding right-of-use assets.
6. Sum of cash flow from operating activities and cash flow from long-term investing activities (before securities).

Wacker Chemie AG - Annual Report 2022

Annual Report

2022

WACKER

Goals Until 2030 - Charting a Strategic Course

for Corporate Success

Key Events in 2022

Goals Until 2030 - Charting a Strategic Course for Corporate Success

a

For Our Shareholders

Letter to Our Shareholders Executive Board

Report of the Supervisory Board WACKER Stock in 2022

b

Combined Management Report Group Business Fundamentals

Goals and Strategies Management Processes Statutory Information on Takeovers Business Report

Earnings

Net Assets Financial Position Further Information on R&D, Employees, Procurement, Production, Sales and Marketing Management Report of Wacker Chemie AG Risk Management Report

Outlook

c

Consolidated Financial Statements

Statement of Income

Statement of Comprehensive Income

Statement of Financial Position

Statement of Cash Flows

Statement of Changes in Equity

2	Reconciliation of Other Equity Items	124
	Segment Information by Division	125
3	Segment Information by Region	126
	Notes of the WACKER Group	127
	Declaration by the Executive Board
	on Accounting Methods and Auditing	187
	Reproduction of the Independent Auditor's Report	188
39
45	d
46

52 Sustainability Report and Non-Financial Report

	Sustainability Report and the Combined
	Separate Non-Financial Report for the
	WACKER Group and for Wacker Chemie AG	197
57	Management	199
63	Sustainability Along the Supply Chain	206
64	Production	208
67	Plant and Transport Safety	218
68	Products	219
74	Employees	223
79	Society	231
82	EU Taxonomy Regulation	234
	TCFD Index	246
	GRI Index	248
85	Limited Assurance Report of
91	the Independent Auditor	254
96
111	e
	Further Information
	Supervisory Board	259
119	Executive Board	260
120	Declaration on Corporate Management	261
121	Multiyear Overview	272
122	Chemical Glossary / Financial Glossary	274
123	List of Tables and Figures	277

Key Events - 2022

April

wacker became a partner of the German Government in its pandemic preparedness plan. This project aims to provide vaccines to the public more quickly in the future. To make this happen, wacker started construction on a new facility in Halle for manufacturing vaccines based on messenger ribonucleic acid (mRNA).

May

The annual shareholders' meeting of Wacker Chemie AG approved the biggest dividend distribution in the company's history. With a dividend of 8 euros per share, the Group distributed around 50 percent of its net income

for 2021.

A new Innovation Center was opened in Ann Arbor, Michigan, usa. Biotech and silicone specialties are being developed in this research facility, which also serves as the headquarters of our subsidiary wacker

Chemical Corporation.

Key	and polymer-based solutions for sustainable
applications. wacker has been an exhibitor at
Events	K, which marked its 70th year, since 1952.
		A sustainability prize was awarded for the
		first time for projects aimed at achieving the
		Group's sustainability targets. The wacker Net
		Zero Award of 10,000 euros went to a project
2022
team from Burghausen and Nünchritz for their
improvements to the process of manufacturing
		siloxane, the most important starter product
		for silicones.
		November
		Robert Habeck, Federal Minister for Economic
		Affairs and Climate Protection, visited the
		Nünchritz site to learn about how it sources
		its energy and about the chemical industry's
		path to net zero. He commented that wacker's
		innovative polysilicon production was
		leading-edge.

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July

In Panagarh, India, wacker opened a production site for manufacturing silicone rubber and silicone rubber compounds for electromobility, medical engineering and electricity supply. The site is part of the Group's new growth strategy. Some 100 new jobs will be created during the

first expansion phase.

1. Spanish-Germanproject team won the Alexander Wacker Innovation Award. The winning researchers developed a substantially more efficient fermentation process for producing L-cysteine. They have set new standards for converting glucose into cysteine
   and they achieve improved yields.

A symbolic ground-breaking ceremony launched the expansion of our Technical Competence Center for mRNA actives in Halle. At the Weinberg Campus, four production lines are being initiated for active ingredients based on mRNA, such as vaccines for coronavirus. Production capacity in Halle will more than triple, with the number of employees more than doubling. wacker is investing more than

100 million euros in these projects.

August

75 years ago, wacker started working with silicones, the first European company to do so. Today, these high-performance plastics are omnipresent in our everyday lives.

The founding of the tum wacker Institute for Industrial Biotechnology has strengthened the partnership between the Technical University of Munich (tum) and wacker. The goal is to further develop research in industrial biotechnology at the highest international level and to work on specialty chemicals and active ingredients

sourced from renewable raw materials.

September

Burghausen's Vocational Training Center (BBiW) celebrated its 50th anniversary. This facility helps the next generation of skilled professionals build up their knowledge base

• not just in chemical processes and complex integrated production technology, but also in teamwork skills and the digital transformation.

October

At the 22nd Trade Fair for Plastics and Rubber, K 2022, wacker presented silicone

Christian Hartel was part of a 12-member business delegation accompanying German Chancellor Olaf Scholz on an official visit to China. Prime Minister Li gave a banquet for the German delegation, during which the wacker ceo spoke about the long history of successful business relations between China and Germany, as well as about the necessity for equal treatment of domestic and foreign

companies.

The 17th Asian-Pacific Conference of German Business (apk) focused on diversification and sustainability. The Indian-Pacific region is an important area for both of these key issues. wacker has major company sites and customers in the area. ceo Christian Hartel was one of the participants accompanying Federal Minister Robert Habeck to the apk in

Singapore.

Executive Board members Christian Hartel and Angela Wörl participated in the topping- out ceremony for the new headquarters of the wacker Group in Munich's "Werksviertel" district. With its open-plan building design, the new company HQ represents a modern corporate culture that emphasizes transparency,

communication and personal initiative.

Wacker Chemie AG - Annual Report 2022

Our Compass Until 2030

Charting a Strategic Course

for Corporate Success

Pursuing the right strategy is like working a puzzle: the pieces all have to fit together in a way that makes sense. Strategy is also a critical factor in guaranteeing a company's long-term success. For more than 100 years, wacker has been able to successfully hold its own in the marketplace with a strategy geared to customers, markets and products. As part of that process, we have changed and realigned ourselves again and again, and 2022 has marked just such a strategic turning point - one where growth and sustainability­

go hand in hand. We want to grow profitably while significantly reducing our absolute greenhouse gas emissions. This long-term strategy - the compass that will guide us between now and 2030 - is informed above all by the conviction that our solutions make a better world for generations.

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Wacker Chemie AG - Annual Report 2022