DGAP-News: Wacker Chemie AG / Key word(s): Quarter Results Wacker Chemie AG: WACKER RAISES FULL-YEAR EBITDA FORECAST 28.04.2016 / 07:14 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - GROUP SALES FOR Q1 2016 TOTAL EUR1.31 BILLION, DOWN 2 PERCENT YEAR OVER YEAR, BUT UP 7 PERCENT COMPARED WITH Q4 2015 - EBITDA FOR THE REPORTING QUARTER COMES IN AT EUR229 MILLION, 14 PERCENT LOWER THAN A YEAR AGO AMID START-UP COSTS FOR THE NEW CHARLESTON SITE, BUT 22 PERCENT HIGHER QUARTER OVER QUARTER - NET INCOME FOR Q1 2016 AMOUNTS TO EUR16 MILLION - EARNINGS FORECAST RAISED: FOR FULL-YEAR 2016, EBITDA EXPECTED TO RISE BY BETWEEN 5 AND 10 PERCENT WHEN ADJUSTED FOR SPECIAL INCOME, WHILE GROUP SALES STILL PROJECTED TO INCREASE SLIGHTLY Munich, April 28, 2016 - Wacker Chemie AG concluded the first quarter of 2016 in line with its expectations. The Munich-based chemical company's sales were down marginally year over year. Earnings before interest, taxes, depreciation and amortization (EBITDA) were considerably lower than in Q1 2015, influenced by start-up costs for the new site at Charleston, Tennessee (USA). Compared with the preceding quarter, however, WACKER achieved a substantial increase in both sales and EBITDA. The Group posted sales of EUR 1,314.3 million in the reporting quarter (Q1 2015: EUR1,334.9 million), down close to 2 percent year over year. This slight decrease was chiefly due to the fact that solar-silicon and semiconductor-wafer prices were lower than a year earlier. Compared with the prior quarter (EUR1,232.9 million), however, sales grew by around 7 percent, primarily thanks to stronger customer demand and volume growth. EBITDA amounted to EUR228.9 million in the reporting period (Q1 2015: EUR267.1 million), down about 14 percent year over year, but almost 22 percent higher than in Q4 2015 (EUR188.4 million). The EBITDA margin came in at 17.4 percent in the reporting quarter, after 20.0 percent in Q1 2015 and 15.3 percent in Q4 2015. Group earnings before interest and taxes (EBIT) amounted to EUR58.9 million in Q1 2016 (Q1 2015: EUR126.3 million), with a corresponding EBIT margin of 4.5 percent (Q1 2015: 9.5 percent). Net income for the reporting quarter amounted to EUR16.1 million (Q1 2015: EUR70.6 million) and earnings per share came in at EUR0.41 (Q1 2015: EUR1.42). Low price levels for semiconductor wafers and solar silicon as well as the anticipated start-up costs of around EUR30 million for the new site in Charleston had an impact on WACKER's earnings from January through March 2016. Wafer prices averaged somewhat lower than a year ago, while prices for solar silicon were down substantially compared with Q1 2015. However, market prices for polysilicon have been recovering steadily since mid-February, benefiting WACKER's polysilicon business. Combined EBITDA for the three chemical divisions was around 19 percent higher than a year ago, with volume growth and good cost levels having a positive influence. WACKER has raised its earnings forecast for full-year 2016. EBITDA - adjusted on a comparable basis to exclude special income from damages received and from terminated contractual and delivery relationships with solar customers - is expected to rise between 5 and 10 percent against last year. WACKER had previously anticipated a slight increase in adjusted EBITDA year over year. The company has raised its forecast due to the chemical divisions' strong and profitable start to the year and to the improving polysilicon pricing environment. The company still expects to post a low single-digit percentage increase in Group sales. "WACKER had a good start to the new year given the underlying conditions," said CEO Rudolf Staudigl in Munich on Thursday. "Our chemical business, in particular, performed strongly and profitably from January through March. As expected, our semiconductor business was impacted by the continued weak demand for smartphones, tablets and PCs. In our polysilicon segment, sales volumes were substantially higher than a year ago. We have experienced a slight but steady increase in solar-silicon prices over the past several weeks. Our sales and earnings trend in the opening quarter and our current order intake have made us even more confident about the months ahead." Regions The Group's sales in Asia totaled EUR551.9 million in Q1 2016. That was 4 percent more than in the preceding quarter (EUR530.6 million), but 3 percent less than in Q1 2015 (EUR569.3 million) primarily due to price effects. Overall, the company generated 42 percent (Q1 2015: 43 percent) of its sales in Asia. Thus, the region remains the Group's largest market. In Europe, WACKER achieved sales of EUR292.3 million in Q1 2016 (Q1 2015: EUR297.0 million) - a year-over-year decrease of 2 percent, but 6 percent higher than in the preceding quarter (EUR275.1 million). While business with semiconductors, silicones and biopharmaceuticals in Europe generated year-over-year growth, sales of polysilicon and construction polymers declined. The trend in Germany was positive in the period January through March, with Group sales totaling EUR182.1 million (Q1 2015: EUR176.0 million). That was an increase of almost 4 percent from a year ago. Sales rose by 12 percent relative to Q4 2015 (EUR163.2 million). Amid good demand, all business divisions surpassed their respective prior-year and prior-quarter figures. In the Americas, sales of EUR233.0 million were down 4 percent from a year ago (Q1 2015: EUR243.8 million). Most of this decline stemmed from lower semiconductor-wafer and solar-silicon sales. Compared with Q4 2015 (EUR212.6 million), however, WACKER grew its sales by almost 10 percent, with all three chemical divisions posting substantial increases quarter over quarter. In total, WACKER generated about 86 percent of its Q1 2016 sales with customers outside Germany (Q1 2015: 87 percent). Capital Expenditures and Net Cash Flow In Q1 2016, the Group's capital expenditures amounted to EUR111.2 million (Q1 2015: EUR174.9 million), down 36 percent year over year. WACKER's investing activities remained centered on completion of the new polysilicon site at Charleston, Tennessee (USA). This project accounted for more than half of the Group's total investment spending during the reporting quarter. Start-up of the Charleston production facilities progressed as scheduled in the January-through-March period. WACKER already produced and sold initial quantities of polysilicon from the plant in the reporting quarter. Other investment spending focused on enhancing technology and modernizing crystal-pulling facilities at Siltronic. The Group's net cash flow was EUR-12.0 million in Q1 2016, after EUR17.4 million in Q1 2015. The main reason for this decline was the lower net income for the period. Employees Relative to the preceding quarter, the number of WACKER employees worldwide rose by 1 percent in Q1 2016. On March 31, 2016, the Group had 17,048 employees (Dec. 31, 2015: 16,972). As of the end of the reporting quarter, WACKER had 12,266 employees in Germany (Dec. 31, 2015: 12,251) and 4,782 at its international sites (Dec. 31, 2015: 4,721). Business Divisions WACKER SILICONES increased both its sales and earnings in Q1 2016. The division posted total sales of EUR491.3 million (Q1 2015: EUR474.8 million) in the period January through March 2016, an increase of almost 4 percent from a year ago. Relative to the preceding quarter (EUR460.3 million), sales rose by 7 percent. Higher year-over-year and quarter-over-quarter volumes were the chief contributing factor in this growth. In Q1 2016, WACKER SILICONES' EBITDA totaled EUR87.9 million (Q1 2015: EUR67.7 million), up 30 percent on the prior-year figure. In addition to sales growth, a high plant-utilization rate and a low cost level both had a positive impact on earnings. Relative to Q4 2015 (EUR49.6 million), the division's EBITDA was 77 percent higher. The corresponding EBITDA margin increased to 17.9 percent, after 14.3 percent in Q1 2015 and 10.8 percent in Q4 2015. At EUR285.9 million, total sales at WACKER POLYMERS in Q1 2016 were slightly above the level of a year earlier (EUR284.6 million). Compared with the preceding quarter (EUR273.3 million), sales grew by 5 percent. Volume growth for dispersions and dispersible polymer powders led to higher sales. The division's EBITDA grew to EUR64.4 million, up almost 8 percent compared with Q1 2015 (EUR59.9 million). The rise was mainly due to volume growth and a very good cost level. Relative to the preceding quarter (EUR40.8 million), EBITDA was up 58 percent, with seasonal effects also playing a role. WACKER POLYMERS' EBITDA margin increased from 21.0 percent in Q1 2015 to 22.5 percent in the reporting quarter. The corresponding Q4 2015 figure was 14.9 percent. WACKER BIOSOLUTIONS generated total sales of EUR49.6 million in Q1 2016, which was at the prior-year level (EUR49.4 million), but 11 percent higher than the final quarter of 2015 (EUR44.6 million). The main reason for this increase in sales was volume growth in several segments. Earnings grew even more strongly than sales. In Q1 2016, EBITDA at WACKER BIOSOLUTIONS totaled EUR9.6 million after EUR8.8 million in Q1 2015, an increase of 9 percent on a year earlier. Relative to the preceding quarter (EUR6.7 million), EBITDA was up 43 percent. The EBITDA margin rose accordingly to 19.4 percent, after 17.8 percent a year ago and 15.9 percent in Q4 2015. In Q1 2016, WACKER POLYSILICON posted total sales of EUR273.1 million, compared with EUR289.4 million a year earlier, down nearly 6 percent. Relative to the preceding quarter (EUR241.5 million), sales were up 13 percent. Substantially higher volumes year over year could not fully compensate for declining prices. Since mid-February, however, solar-silicon prices have recovered slightly. In the first quarter of 2016, WACKER POLYSILICON's EBITDA of EUR39.4 million was 50 percent lower than a year ago (EUR78.7 million) and down 44 percent compared with the preceding quarter (EUR70.5 million). In addition to the year-over-year decline in polysilicon prices, start-up costs of around EUR30 million for the new polysilicon site at Charleston reduced the division's EBITDA. WACKER POLYSILICON's EBITDA margin came in at 14.4 percent in the three-month period January through March 2016, after 27.2 percent in Q1 2015 and 29.2 percent in Q4 2015. When adjusted for the Charleston start-up costs, the division's EBITDA margin in the reporting quarter was just over 25 percent. Siltronic achieved total sales of EUR220.6 million in the first three months of the year. That was 2 percent more than in Q4 2015 (EUR215.3 million), but 8 percent less than a year earlier (EUR238.7 million). Subdued demand for semiconductor wafers and lower average prices year over year both had a dampening effect on the division's sales in the reporting quarter. Siltronic's EBITDA in Q1 2016 totaled EUR23.6 million, after EUR40.0 million in Q1 2015. This decline of 41 percent was mainly due to lower sales and higher currency-hedging costs. Relative to Q4 2015 (EUR23.2 million), EBITDA increased by 2 percent. Siltronic's EBITDA margin was 10.7 percent in the reporting quarter, after 10.8 percent in the preceding quarter and 16.8 percent a year earlier. Outlook According to the latest forecasts, the global economy will continue to grow moderately in 2016. Nevertheless, risks to global economic growth remain, especially from the economic slowdown in Asia and the strong drop in oil prices. Sales at WACKER SILICONES are expected to increase by a mid-single-digit percentage in 2016. Particular areas of growth are products and applications for personal care, plastics and medical technology, as well as for the electrical and electronics sectors. EBITDA should be markedly above the prior-year figure. WACKER POLYMERS, too, is anticipating a mid-single-digit increase in sales for the full year, with both dispersions and dispersible polymer powders expected to help drive this growth. The division expects a slight year-over-year increase in EBITDA. Mid-single-digit growth in sales is also forecast at WACKER BIOSOLUTIONS for full-year 2016. The division sees further growth potential particularly for pharmaceutical proteins and chewing gum. EBITDA should come in at the prior-year level. WACKER expects to post further growth in polysilicon volumes in 2016, but nonetheless anticipates only marginal sales growth because of lower average prices. EBITDA is forecast to 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 WACKER's new polysilicon production site in Charleston. Siltronic expects sales to decline by a low- to mid-single-digit percentage in the current year due to lower market prices. Siltronic continues to anticipate a slight improvement in the EBITDA margin compared with last year, with cost-optimization measures and lower currency-hedging expenses having a favorable impact. Overall, WACKER expects Group sales to rise by a low-single-digit percentage in fiscal 2016. WACKER has raised its EBITDA forecast. EBITDA should climb by between 5 and 10 percent, when adjusted on a comparable basis to exclude special income. The company had previously anticipated a slight increase here. 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 for full-year 2016 is now expected to be slightly below last year's figure of EUR1,074 million. WACKER had previously guided for full-year net financial debt to come in at last year's level. Information for editorial offices: The Q1 2016 report is available for download on the WACKER website (www.wacker.com) under Investor Relations. WACKER's Key Figures

                                                                     Change
EUR million                              Q1 2016       Q1 2015         in %
Sales                                    1,314.3       1,334.9         -1.5
EBITDA1                                    228.9         267.1        -14.3
EBITDA margin2 (%)                          17.4          20.0            -
EBIT3                                       58.9         126.3        -53.4
EBIT margin2 (%)                             4.5           9.5            -

Financial result                           -28.5          -7.0         >100
Income before income taxes                  30.4         119.3        -74.5
Net income for the period                   16.1          70.6        -77.2

Earnings per share (EUR)                    0.41          1.42        -71.3
Capital expenditures                       111.2         174.9        -36.4
Depreciation                               170.0         140.8         20.7
Net cash flow4                             -12.0          17.4         n.a.




                                       March 31,     March 31,     Dec. 31,
EUR million                                 2016          2015         2015
Total assets                             7,441.9       7,430.7      7,264.4
Equity                                   2,487.7       1,817.0      2,795.1
Equity ratio (%)                            33.4          24.5         38.5
Financial liabilities                    1,636.3       1,583.7      1,455.4
Net financial debt5                      1,110.0       1,198.1      1,074.0

Employees (number at end of period)       17,048        16,844
                                                                     16,972

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] --------------------------------------------------------------------------- 28.04.2016 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. Media archive at www.dgap-medientreff.de and 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; Terminbörse EUREX End of News DGAP News Service --------------------------------------------------------------------------- 458439 28.04.2016