DGAP-News: Wacker Chemie AG / Key word(s): Half Year Results Wacker Chemie AG: AFTER A GOOD FIRST HALF-YEAR, WACKER EXPECTS EBITDA TO BE AT UPPER END OF FORECAST RANGE 28.07.2016 / 07:14 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - AT EUR1.39 BILLION, GROUP SALES FOR Q2 2016 UP 1 PERCENT YEAR OVER YEAR AND MORE THAN 5 PERCENT COMPARED WITH Q1 2016 - AT EUR300 MILLION, EBITDA DOWN 9 PERCENT ON A YEAR AGO DUE TO LOWER SPECIAL INCOME, BUT 31 PERCENT UP QUARTER OVER QUARTER - ADJUSTED FOR SPECIAL INCOME, EBITDA UP 21 PERCENT YEAR OVER YEAR - NET INCOME FOR Q2 2016 AMOUNTS TO EUR59 MILLION - WACKER SPECIFIES EARNINGS FORECAST: INCREASE IN FULL-YEAR 2016 ADJUSTED EBITDA LIKELY TO BE AT UPPER END OF EXPECTED 5-10 PERCENT RANGE Munich, July 28, 2016 - In the second quarter of 2016, Wacker Chemie AG continued to grow its sales, both year over year and quarter over quarter. The Munich-based chemical company posted sales of EUR 1,386.2 million in the reporting quarter (Q2 2015: EUR1,370.5 million), a rise of 1 percent. This slight increase was caused primarily by substantial year-over-year volume growth for silicones, polymer products and polysilicon, which enabled WACKER to more than compensate for price declines - especially affecting polysilicon and semiconductor wafers - compared with the year- earlier quarter. Against the preceding quarter (EUR1,314.3 million), sales grew by over 5 percent, with higher volumes and improved polysilicon prices having a positive impact on the sales trend. Group earnings before interest, taxes, depreciation and amortization (EBITDA) came to EUR300.0 million in Q2 2016. This is 9 percent less than a year ago (EUR329.0 million), but 31 percent more than a quarter earlier (EUR228.9 million). The EBITDA margin for the reporting quarter was 21.6 percent, after 24.0 percent in Q2 2015 and 17.4 percent in Q1 2016. Group earnings before interest and taxes (EBIT) amounted to EUR110.9 million in Q2 2016 (Q2 2015: EUR187.9 million), yielding an EBIT margin of 8.0 percent (Q2 2015: 13.7 percent). Net income for the reporting quarter amounted to EUR58.9 million (Q2 2015: EUR108.2 million) and earnings per share came in at EUR1.15 (Q2 2015: EUR2.21). The year-over-year drop in EBITDA was due predominantly to the effect of advance payments retained and damages received a year ago. In Q2 2015, WACKER had terminated contractual and delivery relationships with customers from the solar sector, resulting in special income of EUR86.7 million. For the reporting quarter, WACKER posted EUR7.0 million in special-income items. Adjusted for these non-recurring effects, EBITDA grew by around 21 percent year over year. This growth was primarily attributable to higher sales volumes and good cost levels. WACKER has specified its earnings forecast for full-year 2016. EBITDA on a comparable basis - i.e. adjusted to exclude special income from damages received and from terminated contractual and delivery relationships with solar customers - is expected to be between 5 and 10 percent higher than last year. Given its good performance in the first half of 2016, WACKER now assumes that adjusted EBITDA will be at the upper end of this range. The company still expects to post a low single-digit percentage increase in Group sales. "After the first six months of the current fiscal year, WACKER's operational performance is on a good trajectory," said CEO Rudolf Staudigl in Munich on Thursday. "For silicon wafers, volumes were still subdued in Q2 2016 because of market conditions. In contrast, our chemical divisions and polysilicon business continued to benefit from strong customer demand. Our sales in the reporting quarter were also positively influenced by polysilicon prices that were noticeably better than at the start of the year. Although the risks for the global economy remain high, we are now confident about reaching the upper end of the forecast range for our 2016 targets due to our good business performance in the first half of the year." Regions In Q2 2016, Group sales were higher year over year in all regions apart from the Americas. The Group's sales in Asia totaled EUR582.0 million in the reporting quarter, up about 1 percent from last year's figure of EUR577.4 million. In Europe, WACKER achieved sales of EUR325.6 million in April through June 2016 (Q2 2015: EUR314.1 million), up about 4 percent year over year. Business performance in Germany was even better, with sales there totaling EUR182.8 million in the reporting quarter, compared with EUR172.1 million a year earlier. That represented a year-over-year increase of 6 percent. Sales in the Americas amounted to EUR236.6 million, 4 percent lower than in Q2 2015 (EUR249.8 million) due to price and volume effects. Capital Expenditures and Net Cash Flow In Q2 2016, the Group's capital expenditures amounted to EUR88.0 million (Q2 2015: EUR214.2 million), representing a year-over-year decrease of 59 percent. One focus of capital spending in the reporting quarter was the remaining work needed to finish the new polysilicon site in Charleston, Tennessee (USA). Commissioning of the Charleston production facilities proceeded as planned in the April-through-June period. Funds were also invested to modernize crystal-pulling facilities and further automate production at Siltronic, as well as to expand capacities for downstream silicone products. The Group's net cash flow was EUR126.0 million in Q2 2016, after EUR21.0 million in Q2 2015, with substantially reduced capital expenditures being the main reason for this increase. Employees Relative to the preceding quarter, the number of WACKER employees worldwide remained virtually unchanged in Q2 2016. The Group had 17,081 employees as of June 30, 2016 (March 31, 2016: 17,048). As of the end of the reporting quarter, WACKER had 12,230 employees in Germany (March 31, 2016: 12,266) and 4,851 at its international sites (March 31, 2015: 4,782). Business Divisions WACKER SILICONES generated total sales of EUR514.4 million in April through June (Q2 2015: EUR506.3 million). This rise of 2 percent was mainly attributable to volume growth. In contrast, sales were dampened by year-on- year price softening for a number of product groups and by exchange-rate effects, particularly in emerging economies. Sales were 5 percent higher than in the preceding quarter (EUR491.3 million). WACKER SILICONES' EBITDA reached EUR93.7 million in the reporting quarter, 21 percent higher than a year ago (EUR77.3 million). EBITDA grew by 7 percent relative to the preceding quarter (EUR87.9 million). In addition to sales growth, low costs and a high plant-utilization rate averaging over 90 percent had a positive impact on earnings. The EBITDA margin improved in Q2 2016 to reach 18.2 percent, after 15.3 percent a year ago and 17.9 percent in the preceding quarter. At EUR325.7 million, total sales at WACKER POLYMERS were 4 percent higher than the year-earlier figure (EUR314.6 million) and 14 percent above the preceding quarter (EUR285.9 million). Volumes for dispersions and dispersible polymer powders grew substantially, both year over year and quarter over quarter. The division's EBITDA increased to EUR78.2 million in the reporting quarter, after EUR56.8 million in Q2 2015, up 38 percent. In addition to volume-driven sales growth, this increase was largely attributable to the very good cost level, itself in part a result of the high plant-utilization rate of around 90 percent. Compared with a quarter earlier (EUR64.4 million), EBITDA grew by 21 percent. The EBITDA margin rose in Q2 2016 to reach 24.0 percent, after 18.1 percent a year ago and 22.5 percent in the preceding quarter. WACKER BIOSOLUTIONS generated total sales of EUR53.2 million from April through June 2016 (Q2 2015: EUR52.7 million), up 1 percent on a year ago. Relative to the preceding quarter (EUR49.6 million), the division's sales were up by 7 percent, with somewhat higher volumes for a number of products being the main driver of this growth. At EUR9.0 million, second-quarter EBITDA at WACKER BIOSOLUTIONS was 5 percent below the year-earlier figure (EUR9.5 million) and down 6 percent on the preceding quarter (EUR9.6 million). Earnings in the reporting quarter were dampened by maintenance work on production facilities and by expenses incurred to close down the former production plant in Wuxi, China. The EBITDA margin came in at 16.9 percent, after 18.0 percent a year ago and 19.4 percent in Q1 2016. At EUR272.2 million, WACKER POLYSILICON's total sales in the reporting quarter were some 4 percent higher than a year earlier (EUR261.3 million). Significantly higher volumes year over year more than compensated for lower polysilicon prices. The division almost matched its sales figure of the preceding quarter (EUR273.1 million), largely because average prices were noticeably higher quarter over quarter. On the other hand, volumes were somewhat lower than in Q1 2016, since less inventory was available for sale. WACKER POLYSILICON's reporting-quarter EBITDA amounted to EUR77.7 million, compared with EUR161.4 million in Q2 2015. This decline of 52 percent was mainly due to a prior-year non-recurring effect. In Q2 2015, the division had terminated contractual and delivery relationships with some solar-sector customers and, as a result, had retained advance payments and received damages totaling EUR86.7 million. In the reporting quarter, WACKER posted EUR7.0 million in special income of this kind. The start-up costs for the new polysilicon site in Charleston, which amounted to around EUR18 million in the reporting quarter, were another factor reducing the division's earnings. Compared with the preceding quarter (EUR39.4 million), EBITDA almost doubled. From April through June 2016, WACKER POLYSILICON's EBITDA margin came in at 28.5 percent, after 61.8 percent in Q2 2015 and 14.4 percent in Q1 2016. Siltronic reported total sales of EUR229.8 million in Q2 2016, down 7 percent from last year's figure of EUR246.7 million. Somewhat lower volumes - due to subdued market demand - dampened sales, as did semiconductor wafer prices that were noticeably lower year over year. Relative to the preceding quarter (EUR220.6 million), sales were up 4 percent. Siltronic's reporting- quarter EBITDA amounted to EUR35.0 million, compared with EUR31.4 million in Q2 2015, an increase of 12 percent. In Q2 2015, EBITDA had been impacted by currency hedging losses of EUR17.6 million, compared with only EUR2.7 million in the reporting quarter. Relative to the preceding quarter (EUR23.6 million), EBITDA was up by around 48 percent, mainly due to sales growth and lower currency hedging losses. Siltronic's EBITDA margin climbed to 15.2 percent in the reporting quarter, after 12.7 percent in Q2 2015 and 10.7 percent in Q1 2016. Outlook Consensus estimates by economic experts indicate that the global economy is set to continue growing moderately through the rest of 2016. But the recovery remains fragile, and risks to economic growth have increased in recent months. For full-year 2016, WACKER expects to post a low-to-mid single-digit percentage sales increase at its chemical and polysilicon businesses. Sales at Siltronic are likely to decline by a low-to-mid single-digit percentage. EBITDA at WACKER SILICONES should be markedly above the prior-year figure. WACKER POLYMERS, too, expects to achieve a noticeable year-over-year increase. EBITDA at WACKER BIOSOLUTIONS is expected to be on a par with last year. WACKER POLYSILICON anticipates that its EBITDA will decline significantly year over year, since less special income - in the form of advance payments retained and damages received - is expected in 2016 than was posted last year. EBITDA will also be reduced by start-up costs at the new polysilicon production site in Charleston, Tennessee. Siltronic continues to anticipate a slight improvement in the EBITDA margin compared with last year. Overall, WACKER expects Group sales to rise by a low single-digit percentage in fiscal 2016. WACKER has specified its EBITDA forecast of an increase of between 5 and 10 percent on a comparable basis, i.e. when adjusted to exclude special income. Given its good performance in the first half of the year, WACKER now assumes that adjusted EBITDA will be at the upper end of this range. The EBITDA margin, on the other hand, will be somewhat lower, since no major special-income items are expected. Additionally, there will be further start-up costs at the new production site in Charleston, Tennessee (USA). Capital expenditures will be about EUR425 million, substantially lower than a year ago. Depreciation will reach around EUR720 million, significantly above last year's level. Group net income is projected to be markedly lower than in the previous year. WACKER expects net cash flow to be clearly positive. Net financial debt as of year-end 2016 is anticipated to be slightly below last year's level. Information for editorial offices: The Q2 2016 report is available for download on the WACKER website (www.wacker.com) under Investor Relations. WACKER's Key Figures

EURmillion                      Q2 2016           Q2 2015            Change
                                                                       in %
Sales                           1,386.2           1,370.5               1.1
EBITDA1                           300.0             329.0              -8.8
EBITDA margin2 (%)                 21.6              24.0                 -
EBIT3                             110.9             187.9             -41.0
EBIT margin2 (%)                    8.0              13.7                 -

Financial result                  -24.5             -19.9              23.1
Income before income               86.4             168.0             -48.6
taxes
Net income for the                 58.9             108.2             -45.6
period

Earnings per share                 1.15              2.21             -47.9
(EUR)

Capital expenditures               88.0             214.2             -58.9
(including financial
assets)
Depreciation                      189.1             141.1              34.0
Net cash flow4                    126.0              21.0              >100



EURmillion                      6M 2016           6M 2015            Change
                                                                       in %
Sales                           2,700.5           2,705.4              -0.2
EBITDA1                           528.9             596.1             -11.3
EBITDA margin2 (%)                 19.6              22.0                 -
EBIT3                             169.8             314.2             -46.0
EBIT margin2 (%)                    6.3              11.6                 -

Financial result                  -53.0             -26.9              97.0
Income before income              116.8             287.3             -59.3
taxes
Net income for the                 75.0             178.8             -58.1
period

Earnings per share                 1.56              3.63             -57.0
(EUR)

Capital expenditures              199.2             389.1             -48.8
(including financial
assets)
Depreciation                      359.1             281.9              27.4
Net cash flow4                    114.0              38.4              >100


EURmillion                June 30, 2016     June 30, 2015     Dec. 31, 2015
Total assets                    7,497.2           7,425.7           7,264.4
Equity                          2,138.7           2,687.7           2,795.1
Equity ratio (%)                   28.5              36.2              38.5
Financial liabilities           1,668.8           1,508.4           1,455.4
Net financial debt5             1,153.9             938.9           1,074.0

Employees (number at             17,081            16,928            16,972
end of period)

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 results, and income taxes. 4 Sum of cash flow from operating activities (excluding changes in advance payments) and cash flow from long-term investing activities (before securities), including additions due to finance leases. 5 Sum of cash and cash equivalents, noncurrent and current securities, and noncurrent and current financial liabilities. This press release contains forward-looking statements based on assumptions and estimates of WACKER's Executive Board. Although we assume the expectations in these forward-looking 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 forward-looking statements, nor does it assume the obligation to do so. For further information, please contact: Wacker Chemie AG Media Relations & Information Christof Bachmair Tel. +49 89 6279-1830 [email protected] --------------------------------------------------------------------------- 28.07.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Wacker Chemie AG Hanns-Seidel-Platz 4 81737 München Germany Phone: 0049-89-6279-1633 Fax: 0049-89-6279-2933 E-mail: [email protected] Internet: www.wacker.com ISIN: DE000WCH8881 WKN: WCH888 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Terminbörse EUREX End of News DGAP News Service --------------------------------------------------------------------------- 486799 28.07.2016