WACKER Sustainability. Exane BNP Paribas 6th SRI Forum November 28, 2018 CREATING TOMORROW`S SOLUTIONS

Transcription

1 CREATING TOMORROW`S SOLUTIONS WACKER Sustainability 0

2 WACKER: At a Glance Facts & Numbers 1,014m EBITDA in ,924m Sales in % EBITDA margin in Business Segments 24 Production Sites 14,270 Employees 21 Technical centers 1

3 WACKER: Well Positioned for Future Growth POLYSILICON No. 1 in merchant market OTHERS Sales FY bn SILICONES No. 2 POLYMERS No. 1 BIOSOLUTIONS Leading in niches 2

4 Consistent Growth in Chemicals with POLYSILICON on Top of it with Expanded Capacities Development of WACKER Sales ( bn) CAGR +7% e POLYSILICON CHEMICALS +7% CAGR 3

5 Corporate Targets Sustainability is One of Our Five Strategic Goals 4 WACKER Corporate Headquarters, Munich

6 Sustainability Management a Matter of Top Priority WACKER Executive Board Corporate Sustainability EHS & PS Human Resources (HR) Supplier Management Innovation Business Divisions Other Departments Business Principles Voluntary Global Initiatives Code of Safety Code of Sustainability Code of Teamwork & Leadership Code of Innovation Code of Conduct 5

7 Our Contribution to the UN s Sustainable Development Goals Global challenges that WACKER can help overcome Significant opportunities for our operations Guiding principles for innovations 6

8 WACKER s Sustainability Efforts Recognized by Independent Organizations WACKER ranked as Outperformer by SUSTAINALYTICS in 2017 WACKER received a Prime rating by Oekom research in 2017 Very strong Environmental Management Systems Implementation of a strategy for addressing climate change WACKER ranked with a B in CDP s 2017 climate change ratings WACKER ranked with an A by MSCI in 2017 Corporate governance practices are generally well aligned with shareholder interests 7

9 Continuously Working on Quantitative EHS and Energy Targets Safety Environment Energy & Climate Lost Time Injury Frequency Target Specific dust emissions 100% 60% -50% Target 50% Spec. energy consumption 3 100% 60% -50% Target 50% Process Safety Incident Spec. rel. VOC 2 / Spec. NO x Spec. CO 2 emissions Target % -25% Target 75% 100% 86% 85% -15% Target EHS = Environment Health Safety; 2) VOC = Volatile Organic Compounds; 3) Targets for Germany 8

10 Production & Safety Integrated Production and a Groupwide Safety Management System 9 Just in case, WACKER s chemical containment technology

11 WACKER s Integrated Production System is a Key Competitive Advantage and Helps Avoid CO 2 Emissions Hydrogen Chloride System Very High Recycling Rates Integrated production at Burghausen prevents about 1 million metric tons of CO 2 eq* emissions annually Closed Loops Reduce Waste Byproducts and waste heat are fed back into production via highly complex material and energy loops *CO 2 eq=co 2 equivalent 10

12 By Generating our Own Electricity, the Burghausen Site Contributes to Climate Protection Burghausen Power Mix 4,103 GWh Consumed in Germany Hydro German production sites account for 71% of groupwide electricity needs Renewable Other Nuclear CHP About 50% of our specific energy mix is generated onsite in Burghausen Our carbon footprint from power production is 19% lower than the German electricity mix* Lignite Coal Natural gas Own production Own hydro operations: 265 GWh annually Own highly efficient combined heat and power (CHP) plant: Fuel efficiency >80% German Power Grid *calculated for

13 Our Environmental Management Controls Emissions to Water and Air Greenhouse Gases and Air Pollutants Fewer Dust Emissions Fewer Water Pollutants Fewer CO 2 Emissions Silicon-metal production Process optimization Reduction of specific dust emissions by 50% since 2012 Wastewater treatment plant Emissions of organic pollutants to the Salzach river have decreased by 42% since 2010 DPP* production Ethylene recovery plant CO 2 emissions reduced by 6,800 mt per year since 2015 DPP=Dispersible polymer powder 12

14 Workplace, Plant and Transport Safety Underpin Uninterrupted Production Risk Management Extensive safety and risk analyses of plants from the design stage through to commissioning Basic and Advanced Training Regular seminars on plant safety, explosion protection and work safety Prevention The Loss Control Team studies fire and explosion hazards as well as other risks at our sites Only 1.4 workplace accidents per 1 million hours worked in

15 We Constantly Strive to Optimize Logistics Chains Logistics Improved logistics for maritime transport Responsible Care award for our container train concept Transferring freight transport from road to rail where possible WACKER s 600-meter-long container train travels every day to export ports Transport Safety Shipping volumes of around 825,000 metric tons annually from the Group s largest logistics hub in Burghausen Regularly reviewing our shippers Hazardous-Goods Vehicles are always checked prior to loading Solid performance in 2017 Only 1.4% of safety checks justified a complaint 14

16 WACKER Determines and Improves the Sustainability Performance of Suppliers via the TfS Initiative Together for Sustainability (TfS) One Audit is an Audit for All A standardized, global program that assesses and improves the sustainability of sourcing practices in the chemical industry Supplier Audits Customer Supplier TfS system Customer Suppliers 8,692 suppliers assessed since 2011 and 1,187 suppliers audited 1,794 new assessments in 2017 and 441 new TfS audit reports Target: Assess 70% of WACKER s suppliers by 2020 WACKER Audit as per TfS standards at WACKER s Burghausen site in 2016 Reassessment by EcoVadis in

17 Fuel Cell Sensor ECU e-motor Display Power Conversion Battery Cables / Connectors Products Intelligent Solutions for Sustainable Growth 16 Silicone solutions for e-mobility

18 WACKER s Toolbox to Assess Ecological Effects of Products and Production Processes ECOWHEEL Eco Assessment Life Cycle Analysis Technical Performance or other Material Performance Energy Performance Cost efficiency or other (Eco) Toxicity Performance Water Performance Qualitative tool Semi-quantitative tool Full scale analysis Highlights positive and negative impacts on the lifecycle Useful to define areas of further action Checks performance of two processes/ products/technologies Useful for decision making Provides measureable details on strengths and weaknesses Useful for targets, strategy, evaluation 17

19 WACKER POLYSILICON A Market Leader in Cost and Quality Value Chain Example: Polysilicon in PV projects Raw Material Upstream Downstream Key Markets Salt Silicon Metal Polysilicon Electronic wafer Semiconductors Hydrogen Solar wafer Solar Modules Market Characteristics Module Energy Payback < than 1 year PV market growth driven by increasing competitiveness of solar as a source of power Excellent product quality is key to highest conversion efficiencies in solar Sources: SolarPower Europe fact sheet SUSTAINABILITY OF PHOTOVOLTAIC SYSTEMS The Energy Pay Back Time; research paper, F. Feuerstein, Karlsruhe Institute of Technology,

20 WACKER POLYMERS Market Leader in VAE Dispersions and Powders Value Chain Example: Thin bed CTA with Polymers Raw Material Upstream Downstream Key Markets Ethylene Dispersions DPP Construction Nonwovens & Textiles Acetic Acid VAM PVAc PVOH Adhesives Carpet Coatings & Paints VAE = Vinyl acetate ethylene, VAM = Vinylacetate monomer, PVAc = Polyvinyl acetate, PVOH = Polyvinyl alcohol, DPP = Dispersible Polymer Powders CTA =Ceramic Tile Adhesive Market Characteristics Historic growth above GDP 1 Push transformation in construction towards higher building standards Substitution of non-vae technologies based on value offering Material Savings with POLYMERS Thick bed CTA* Material Savings Thin bed CTA 1) GDP = Gross domestic product 19

21 WACKER SILICONES An Integrated Global Player with a Leading Market Position Value Chain Example: LED Lights 2 Raw materials Methanol Silicon Metal 7 Product groups Fluids & Emulsions Siloxane Elastomers Silanes Resins Fumed Silica OF Silanes Silicone lens Gold wire Silicone encapsulation LED chip Reflector > 3,000 Products & endless applications Heat sink Market Characteristics Serving diversified end markets through broad market penetration and wide customer base Innovation broadens scope of applications A basis for unlimited applications LED Lamps Consume Less Energy efficiency Light bulb 5% Energy-saving lamp 25% LED lamp 30-80% 20

22 WACKER BIOSOLUTIONS Leading in Niches Value Chain Example: Cysteine for Backing Raw Material Upstream Downstream Key Markets Starch/ Dextrose Ethylene Biologics Cyclodextrins / Cysteine Gumbase Biologics Life Sciences Food & Flavor Acetic Acid Ketene Intermediates Pharma/Agro Leader in the Cysteine Food Market Compliant with all major food and pharmaceutical standards Vegetarian production process by fermentation with E.Coli Replaces traditional method to produce cystine via extraction with HCl from hair, pig bristles and feathers Reduction in Consumption of HCl 1 HCl consumption traditional process 27:1 WACKER process needs less HCl 1) HCl = Hydrochloric acid, WACKER estimate 21

23 Employees & Society Valued Employer and an Integral Part of the Society in Which We Live and Work 22

24 Diversity, Inclusion and Equal Opportunity at WACKER A Popular Place to Work WACKER ranks among the top three most popular employers in the German chemical and pharmaceutical industries 82% of employees would recommend WACKER as an employer Global survey completed in 2018 Employee Representation About 90 percent of our employees have employee representation and are subject to collective-bargaining regulations WACKER employees at sites outside Germany can also form unions Proportion of Women Inclusion of People with Disabilities We aim to increase the proportion of women in the 1st level of management from 8 to 10% For the second level of management, we have set a goal of raising the proportion of women from 14.5 to 17.5% Special arrangements are in place to help and promote WACKER employees with disabilities 632 Positions required by law Actual 1,

25 We Monitor and Implement a Strategy to Address Social Aspects Workplace safety (product, transport, plant) Health management and emergency preparedness Safe use of the product Employee recruitment and commitment Basic and advanced training Anti-discrimination and equal opportunity Working hours & work / life balance Social benefits No child labor and forced labor Freedom of association (e.g. unions) Anti-corruption Prevention of fraud and money laundering Free competition Voluntary commitment to serving the public good Environmental protection Open information policies and stakeholder dialogues Site policies and communications 24

26 Charitable Projects and Fostering Young Scientific Talent German Youth Charity Experiment Kit Long-term Assistance We support Die Arche ( The Ark ) youth charity Donations of 100,000 per year to the charity s Munich branch WACKER was presented in 2014 with the Upper Bavarian government s honorary award for integration work Getting young people interested in science The experiment kit has been available to schools free of charge ever since 1992 Won the 2015 SCHULEWIRTSCHAFT That Has Potential! competition Charitable fund provides for reconstruction projects in devastated regions Projects in Sri Lanka, Nepal, China, Haiti, Pakistan 25

27 Environmental Protection, Quality and Commitment to Society Award Recipient Sponsor Gold Status 2017 Wacker Chemical Corp. Wildlife Habitat Council, American Chemical Society Responsible Care Chairman Award 2017 WACKER Greater China Association of International Chemical Manufacturers Honour Award 2017 for economic and social development WACKER Greater China Suzhou Government 2017 Inclusion in Bavaria We Work Together emblem Wacker Chemie AG Bavarian government Shanghai Magnolia Silver Award 2016 WACKER Greater China Shanghai Municipal Government Most Socially Responsible Company 2016 WACKER Greater China China Petroleum and Chemical Industry Federation Most Family-Friendly Companies 2016 Wacker Chemie AG Eltern magazine Partner to Win Award 2016 for distinct contribution to Sustainable Living Plan Wacker Chemie AG Unilever 26

28 Disclaimer The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements and information contained in this presentation may relate to future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, other words such as "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changing business or other market conditions and the prospects for growth anticipated by the Company's management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any statements contained in this presentation, whether as a result of new information, future events or otherwise. In particular, you should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. 27

29 WACKER: Issuer, Contact and Additional Information Issuer and Contact Additional Information INVESTOR RELATIONS CONTACTS Joerg Hoffmann, CFA Tel Monika Stadler Tel ISIN DE000WCH8881 WKN WCH888 Deutsche Börse WCH Scott McCollister Tel Wacker Chemie AG Hanns-Seidel-Platz 4 D Munich Publications Financial Calendar 03/19/19 FY 2018 Results 05/23/19 Annual Shareholders Meeting 04/25/19 Q1 Results /25/19 Q2 Results /30/19 Capital Market Day 10/24/19 Q3 Results 2019 CUSTOMER MAGAZINE FACTBOOK SUSTAINABILITY REPORT 28