Wacker Chemie Big Picture

WACKER CHEMIE AG FACTBOOK 2011
Investor Relations, May 2011

CREATING TOMORROW'S SOLUTIONS
DISCLAIMER
The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of 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, as well as the words "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 Wacker Chemie AGs 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. Wacker Chemie AG 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.
Slide 1
WACKER CHEMIE AG FACT BOOK 2011: CONTENTS

WACKER Group
Overview
Organizational Structure
Integrated Production
Global Network
Research and Innovation
Sustainability
Corporate Citizenship
WACKER SILICONES
WACKER POLYMERS
WACKER BIOSOLUTIONS
WACKER POLYSILICON Siltronic
Overview Portfolio and Markets Application Map Growth Drivers Strengths Meeting Challenges
Overview Portfolio and Markets Growth Drivers Business Setup Strengths Meeting Challenges
Overview Products and Applications Strengths Meeting Challenges
Overview Portfolio and Markets Growth Drivers Competitive Landscape Business Setup Strengths Meeting Challenges
Overview Portfolio and Markets Growth Drivers Strengths Meeting Challenges
Slide 2
WACKER Group
Overview
Organizational Integrated 4 Structure 7 Production
Global Network Research and Sustainability 10 Innovation 11 12
Corporate Citizenship 30
WACKER: MORE THAN 90 YEARS OF HISTORY

1914 >
Foundation of the Dr. Alexander Wacker Ges. fr elektrochemische Industrie KG
1921 >
Hoechst AG becomes shareholder in Wacker-Chemie; providing 50% of the share capital
1947 >
Start of work in the area of silicones
1953 >
First production of hyper-pure silicon for the semiconductor industry
1966 >
Production start of VAC-EthyleneCopolymer in Burghausen
1978 >
Foundation of the Wacker Siltronic Corporation Portland, Oregon, USA
1995 >
Takeover of wafer site in Freiberg, Saxony
1998 >
Takeover of the silicone site in Nuenchritz, Saxony; JV with APCI (APP/WPS)
2000 >
JV with NSCE for wafer business: WNC (55/45), in 2003 buyout of remaining 45% shares Wacker family gains majority share of Wacker Chemie GmbH with 51%
2005 >
A Wacker family venture acquires Sanofi shares; WACKER becomes a stock corporation Wacker Chemie AG
2006 >
Going public in April 2006; JV with Dow Corning for silicones + pyrogenic silica in China; JV Siltronic Samsung Wafer Pte. Ltd. for 300 mm wafers
2007 >
Acquisition of outstanding shares of APP/WPS
2008 >
Decision on new production site for Polysilicon in Nuenchritz, Saxony
2010 >
Takeover of the silicon smelter plant in Holla (Norway) from Fesil Group; Decision on new production site for Polysilicon in Tennessee, USA
WACKER Group
Overview
Global Network
Sustainability
Slide 4
DIVERSIFIED END MARKET PORTFOLIO

Market Structure by Application Segment
Automotive Textile
3%
Adhesives
4%
5% 4% 16%
Others
4%
Energy/Electronics
WACKER 2010 Chemical Industries
23%
Total Sales by Industries
Construct./Renovat.
19%
Semiconductors
Solar
22%
WACKER Group
Overview
Global Network
Sustainability
Slide 5
WACKER INTEGRATION ALONG AND BETWEEN VALUE CHAINS

Business Activity
Technology or market leader in a variety of attractive markets WACKER is a leading global supplier to the chemical, semiconductor and solar industries. In many of its markets WACKER is a technology or market leader focused on processing silicon and ethylene into a variety of inorganic and organic products for high-tech applications.
Group Sales in 2010: 4,748bn

Based on a well balanced portfolio Total business division sales in 2010 (incl. internal sales): 4,926bn 1)
Sales Performance by Region in 2010

Globally present and close to customers Performance by region in 2010
2)
Strategic Focus
Advanced Materials
21%
32%
25% 36% 19% 17% 3%

Europe (without Germany) Germany Others America Asia
2) External sales by customer location, figures rounded
Market Leadership
28%
16%
3%
WACKER SILICONES WACKER POLYMERS WACKER BIOSOLUTIONS WACKER POLYSILICON Siltronic
1) Balance of internal sales / corporate functions / other -178m
Cost Position
Growth!
WACKER Group
Overview
Global Network
Sustainability
Slide 6
FIVE SPECIALISTS UNDER ONE ROOF PRODUCT OVERVIEW

WACKER Group Corporate Departments
WACKER SILICONES Basics & Intermediates Engineering Silicones Performance Silicones Construction Silicones Silica
WACKER POLYMERS Construction Polymers Dispersions Acetyls
WACKER BIOSOLUTIONS Food Pharma / Agrochemical Biopharmaceuticals
WACKER POLYSILICON Siltronic Polysilicon Pyrogenic Silica Chlorosilanes Salt Electronic Wafers Non-area business
WACKER Group
Overview
Global Network
Sustainability
Slide 7
WACKER: JOINT VENTURE STRUCTURE AND THEIR ACCOUNTING

WACKER SILICONES Dow Corning 49%
Wacker Chemicals Fumed Silica Hldg. Pyrogenic Silica
WACKER SILICONES WACKER 51%

1. 2. Pyrogenic Silica JV: Fully consolidated; 49% of net income distributed to Dow Corning Siloxane JV: 25% of net income (income from investments in joint ventures and associates)*
75%
Dow Corning (Hldg.) Siloxane
25%
Siltronic Samsung 50%

Siltronic Samsung Wafer Pte. Ltd. 300 mm Wafer
Siltronic
1.
WACKER
2.
50% of JVs net income (income from investments in joint ventures and associates)* Earnings from wafer sales sold through Siltronic (Sales, COGS, SG&A) excluding Samsung Siltronic has a call option for the majority of the JV
50%
3.
* incl. in EBITDA
WACKER Group
Overview
Global Network
Sustainability
Slide 8
WACKER: HIGHLY INTEGRATED OPERATIONS BASED ON FOUR KEY RAW MATERIALS

Raw Material Upstream
Siloxane Silicon Metal Pyrogenic Silica Polysilicon Electronic Wafers
Downstream
Silicones
Customers Industries
Construction Automotive Suppliers Paints and Coatings Textiles Print and Paper, Personal Care Hyperpure Silicon Wafers Semiconductors Solar Modules Eng. Fabrics, Coatings. Adhesives
Ethylene Acetic Acid Starch/Dextrose
VAE VAM Microb. Fermentation
Dispersible Polymer Powders (DPP) PVAc Therapeutic Proteins Food ingredients
Construction (Tile Adhesives. Dry Mortars. EIFS) Automotive, Food Food, Life Sciences, Household
VAM = Vinyl acetate monomer. VAE = Vinyl acetate ethylene, PVAc = Polyvinyl acetate, EIFS = Exterior insulation and finish system
WACKER Group
Overview
Global Network
Sustainability
Slide 9
GLOBAL FOOTPRINT MOVING MANUFACTURING CLOSER TO CUSTOMERS

WACKER Regional Sales Split 2010
Americas
% of Total Sales 20% 15% 10% 5% 0% 17% 10%
Asia and Rest of the World

% of Total Sales 40% 30% 20% 10% 0% 12% 39%
Sales to
Sales from
Sales to
Sales from
Europe
% of Total Sales 100% 75% 50% 25% 0% 43% 74%
Sales to
Sales from
Customer-centered locations: 26 Production Sites 20 Technical Centers
Production Site Technical Center Production Site and Technical Center
WACKER Group
Overview
Global Network
Sustainability
Slide 10
INNOVATION AT THE CORE OF WACKERS BUSINESS STRATEGIES

A Multidimensional Basis of Innovation
Innovation Strategy Innovation Strategy
Innovation Management Innovation Management
Historically High Levels of R&D Spending

Mio EUR % 7.0 6.0
200
Corporate Key Projects Corporate Key Projects R&D in Business Divisions New Businesses Corporate R&D
180
5.0 4.0 3.0
Engineering Processes
160
140
2.0 1.0
Grant Management WACKER Chair of Silicon Chemistry WACKER Chair Chemistry External Co-operations External Cooperations
Grant Management
120
0.0
1998 2000 2002 2004 2006 2008 2010 2012 Total R&D Spending (LHS) R&D Spending in % of Sales (RHS)
WACKER Group
Overview
Global Network
Sustainability
Slide 11
SUSTAINABILITY IS A KEY PART OF WACKERS BUSINESS PROCESSES

Our Vision
We believe that, long term, the chemical industry makes a vital contribution to global progress and sustainable development. In the future, social and economic success will rest more than ever on worldwide collaboration and interconnected skills. Flexible and specialist units will therefore profit the most from the opportunities available today and tomorrow. Responsible Voluntary program founded in 1984 by the worlds chemical industry WACKER has been member since its inception Wacker Chemie AGs Executive Board signed the CEO Declaration of Support for the Responsible Care in 2006 Care
Reportable Accidents in the Domestic Group vs. Peers (Accidents per 1,000 Employees)
40
BG Chemie* WACKER
35 30 25 20 15 10 5 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Slide 12
* BG Chemie: Accident Insurance & Prevention Asso., German Chemical Industry
WACKER Group
Overview
Global Network
Sustainability
EMPLOYEE DEVELOPMENT IS KEY WE GO THE EXTRA MILE

Vocational Training in Burghausen
682 trainees are gaining skills at WACKERs Vocational Training Center (incl. BBiW trainees) WACKER educates more than its internal demand 665
554 567 581 623 624 621 610 615 643 682
Vocational Training Programs

Chemical technician Chemical laboratory technician Mechatronic technician Logistics administrator IT administrator Security guard Business informatics graduate Process engineering graduate Electronics graduate Industrial sales manager
07
09 20
06
03
04
01
00
02
05
20
20
08
20
20
20
20
20
20
20
20
10
Management assistant etc.
WACKER invests in the future

WACKER Group Overview Organizational Structure Integrated Production Global Network Research and Innovation Sustainability Corporate Citizenship
Slide 13
SUSTAINABILITY - A CORE ELEMENT OF OUR CORPORATE STRATEGY

We are convinced that chemistry makes a vital contribution to global progress and sustainable development Our aim is to balance economic, environmental and social aspects Sustainability is basis of long-term business success
Society
Tolerable Equitable
Ongoing high spending on environmental protection Safe operation of plants Product safety Open dialog with all stakeholders Transparency through reporting Business success through high value products
Sustainable
Environment
Viable
Economy
WACKER Group
Overview
Global Network
Sustainability
Slide 14
WACKER ADDS VALUE THROUGH INTEGRATED PRODUCTION AT ITS SITES

Energy Auxiliary materials Raw materials
+
Waste heat
+
By-products
Chemical processes
Products By-products and waste heat are fed back into production via highly complex material and energy loops and go on to create more value.
Burghausen
WACKER Group Overview Organizational Structure
Nnchritz
Integrated Production Global Network Research and Innovation
Zhangjiagang
Sustainability Corporate Citizenship
Slide 15
INTEGRATED PRODUCTION CREATES VALUE FOR WACKER ON SEVERAL LEVELS +

Environmental Minimizing waste, wastewater and waste gas Minimizing transport Saving energy
Economic (through cost savings of integrated production) Creating value (minimize costs, improve specific output) Social (through better economic performance) Investors: securing the companys existence Employees: safer working conditions, securing jobs
Society: creating purchasing power of society, social spending, etc. Loss of value
Slide 16
A FOCUS ON SAFETY IS THE FOUNDATION OF OUR WORK

WACKER evaluates its plant safety status worldwide periodically WACKER's occupational safety goal is zero injuries
SAFETY
WACKERs systematic worldwide Planning Process is based on - internal experts, - systematically and logically reasoned safety tools and - WACKERs specific planning and plant know-how Potential impacts caused by changes are analyzed in depth before realization using an Integrated Management of Change Process
One global standard

Slide 17
OUR PRODUCTS AND SERVICES HELP TO COPE WITH GLOBAL CHALLENGES

CHALLENGES SOLUTIONS Silicones: LED lenses, SREP,Sealants Polymer Powders: EIFS Polysilicon: Renewable (Solar) Energy Polymer Dispersions: Green Building, low VOC White Biotechnology Cyclodextrins Cysteine
ENERGY EFFICIENCY
GREENHOUSE GASES
RENEWABLE RESOURCES
WACKER Group
Overview
Global Network
Sustainability
Slide 18
VINNAPAS POLYMERS ENABLE TO ENHANCE ENERGY SAVING MEASURES INSULATION SYSTEMS

Energy conservation Exterior insulation and finish systems Potential for CO2 Savings in Germany
840 million m external insulations were applied during 1957-2009, thereof 41 million m in 2009 The new installed area per year reduces the annual CO2 emission by ~1.46 million tons 63% of existing 39 million housing units were built before launch of the first Thermal Insulation Ordinance in 1977 High potentials for energy saving and reduction of CO2 emissions
WACKER Group Overview Organizational Structure Integrated Production
ENERGY SAVINGS
Heat Loss
Sources: Fachverband WDVS e.V. Schulungshandbuch 2010, Energiekompass 2009, Heat image: Sto AG Slide 19 Global Network Research and Sustainability Corporate
Innovation Citizenship
SILICONE ELASTOMERS IN INFRASTRUCTURE: MAJOR ROLE IN POWER GENERATION, TRANSMISSION AND DISTRIBUTION
Advantages of Silicone Elastomers in Power Generation, Transmission and Distribution
UV resistance Heat resistance Low flammability
Germanys Electricity Grid The network of high-voltage and extra-high-voltage lines has a length of over 100,000 km. It is estimated that about 3.75 million insulators are in use. In Europe, tens of millions of insulators are in use.*
*Source: WACKER estimate
WACKER Group Overview Organizational Structure
Hydrophobicity Erosion and tracking resistance Corona and ozone resistance Unaffected by mechanical loading
Global Network
Sustainability
Slide 20
SUPERIOR SAFETY SOLUTIONS: CERAMIFYING SILICONES IN FIRE PROTECTION

Fire Safety Cables Protect Human Life
Assure power supply in fires up to 2 hours and 1100 C (2012 F) Ceramifying silicone rubbers best in fire performance. They are halogen free and produce limited smoke
Ceramifying Silicones Allow to Increase Productivity in Safety Cables

Only ceramifiable INTEGRISIL silicone forms a hard insulating ceramic, under fire conditions Increase manufacturing productivity up to 700% Exhibit superior flexibility in assembly Allow for weight reduction
processed up to jacket : copper cladding, silicone rubber or cross-linked PE conductor
Airport Munich Terminal 2 Only baggage handling required 40 km (25 mi) of safety cables
700 m/min
one step process

any length Insulation: ceramifiable silicone no mica tape needed!
(2100 ft/min)
bedding: ceramifiable silicone, silicone/EPDM blend
WACKER Group
Overview
Global Network
Sustainability
Slide 21
INNOVATION BASED ON WATER REPELLENCY AND DURABILITY OF SILICONES DRIVES GROWTH AND PROTECTS THE ENVIRONMENT
Superior Building Protection with Silicone Resin Emulsions Problem
Severe damages on buildings caused by water penetration
Solution
SILRES BS Protective coatings with unique properties
Example: Beijing Airport
Water Hydrophobic surface Breathable Water repellent Abrasion resistant
www.srep.com
Vapor
Slide 22
PRODUCT DEVELOPMENT DIRECTLY FOR EMERGING MARKETS: SINGLE RINSE SILFOAM HELPS TO REDUCE WATER CONSUMPTION
Silicone antifoams for single rinse softeners Application developed for countries with big hand-wash-market and problems in water supply Usage of silicon-based antifoams reduces water-consumption Combined with softener, SILFOAM reduces the number of rinses from 3-4 times to 1 time Product is placed in South-East-Asia, Mexico and South America
WACKER Group
Overview
Global Network
Sustainability
Slide 23
FUMED SILICA: FOR EFFICIENT BONDING PASTES

Problem: higher energy yields with wind turbines demanded
Longer and heavier blades required Different materials: polar systems
Solution: Fumed Silica (HDK) used in bonding rotor blades

High viscosity Storage stability Less tendency to embrittle
Slide 24
WACKER Group
Overview
Global Network
Sustainability
DEVELOPING NEW MARKETS: SILICONES IN ENERGY SAVING LEDS*

Improved Performance and Energy Efficiency Unique Properties of Silicones for High Brightness LEDs
Silicone Encapsulent
Up to 50% energy savings with LED lighting compared to traditional sources Highly increased lifetime Extremely robust against mechanical stress Allows highly flexible lighting solutions due to instant switchability of color and tone
* LED = Light Emitting Diode
Silicone Advantages
Perfectly resistant against UV-Light from blue and white LEDs Superior heat resistance for high brightness and improved process ability (lead free soldering at 260C)
Global Network Research and Innovation Sustainability Corporate Citizenship
WACKER Group
Overview
Slide 25
WHITE BIOTECHNOLOGY AT WACKER: SUSTAINABLE PRODUCTS AND PROCESSES

Business Division WACKER BIOSOLUTIONS uses corn as renewable raw material for the production of high-value biotech products.
Corn
Starch
O
O
O O
Glucose
O
O
O O
Cyclodextrin
WACKER Group
Overview
Cysteine
Global Network
Sustainability
Slide 26
WACKERS CYSTEINE PRODUCTION PROCESS AN EXCELLENT ALTERNATIVE TO TRADITIONAL EXTRACTION

Biotechnological fermentation is extremely efficient and ecological:
Use of hydrochloric acid is reduced from 27 kg per kg product to 1 kg per kg product. Only renewable, vegetable raw materials and no organic solvents are used. High overall yield: 90 percent of the produced cysteine are gained in the final product. Side product can be used as natural fertilizer. Award-winning: Patented WACKER process won environmental award of the Association of the German Industry (Bund der Deutschen Industrie) 2008
WACKER Group
Overview
Global Network
Sustainability
Slide 27
WACKER POLYSILICON: EACH TON OF POLYSILICON FOR THE PV INDUSTRY AVOIDS THOUSANDS OF TONS OF CO2
Net electrical energy production and avoided CO2-emissions per ton polysilicon over module lifetime*
8,000 7,000 Energy (MWh) Tons of CO2 6,000 5,000 4,000 3,000 2,000 1,000 0 1995 2005 2010
* Example: Modules with Monocrystalline Cells based on WACKER POLYSILICON feedstock
WACKER Group Overview Organizational Structure Integrated Production
MWh electrical energy generated per ton polysilicon
Avoided tons CO2 per ton polysilicon
Sources: Wetzel et al., Int. J. Solar Energy (2000) Vol. 20, Roadmaps EPIA (2006) and BMU (2005)
Slide 28
Global Network
Sustainability
WACKER POLYSILICON: IMPRESSIVE DECREASE OF PV MODULE ENERGY PAYBACK PERIOD

Example: Modules with monocrystalline cells based on WACKER POLYSILICON feedstock
Energy Consumption (kWh/Wp) Energy Payback Period (y) 7 6 5 4 3 2 1 0 1995
Energy Consumption (kWh/W) Energy Payback Period Germany (y) Energy Payback Period California (y)
Main contributions: Wafer thickness reduction Cell efficiency increase Improved ingot pulling Advanced WACKER
2005
2010
polysilicon deposition
% Cell efficiency m Wafer thickness
15 450
17 250
20 150
Sources: Wetzel et al., Int. J. Solar Energy (2000) Vol. 20, Road-maps EPIA (2006) and BMU (2005)
Slide 29
WACKER Group
Overview
Global Network
Sustainability
CORPORATE CITIZENSHIP - PART OF CORPORATE RESPONSIBILITY AT WACKER

We Are Committed to Education and Research
2008: Opening of the Institute of Silicon Chemistry at the Technical University of Munich Our commitment to school education: Experiment kit for schools Bavarian Educational Pact participation Sponsor of Young Scientists competition Internships and site tours Support of the TUM University Foundation
WACKER INSTITUTE Tennessee

WACKER Group Overview
WACKER is working together with the Chattanooga State Community College to set up a joint training program specifically designed for future employees of WACKERs Charleston, Tennessee, site.
Organizational Structure Integrated Production Global Network Research and Innovation Sustainability Corporate Corporate Citizenship Citizenship
Slide 30
WACKERS RELIEF FUND: AN EXAMPLE OF SUSTAINABLE DISASTER AID

Tsunami
250,000 for construction and maintenance of four school classrooms and a training center in Sri Lanka
China Project
100,000 for rebuilding a school in the Sichuan region that had been destroyed by an earthquake
Haiti Project
WACKERs Executive Board supports donation campaign with initial donation of 50,000 and announces to match all incoming donations.
Pakistan Project
50,000 for rebuilding a girls' elementary school (Swat District), which was severely damaged during the 2010 floods.
WACKER Group Overview Organizational Structure Integrated Production Global Network Research and Innovation Sustainability Corporate Corporate Citizenship Citizenship
Slide 31
WACKER IS COMMITTED TO EXCELLENT CORPORATE CITIZENSHIP

Verantwortungsbewusstsein in verschiedenen Bereichen We are a globally active company and view community commitment Community as an essential part of our corporate responsibility. Commitment
Education and Research
We promote education and research through active, as well as financial support. Additional social activities: sports sponsoring, community and cultural events.
Social Activities
Established WACKER HILFSFOND as relief fund channeling emergency aid (2005 Tsunami, 2008 China earthquakes, 2010 Haiti) Active large scale supporter of Die Arche (The Ark), a charity supporting disadvantaged children in Germany
Responsible Employees
WACKER Group
At its locations worldwide, WACKER encourages employees self initiative to accept responsibility for the society in which we all live and work.
Overview Organizational Structure Integrated Production Global Network Research and Innovation Sustainability Corporate Corporate Citizenship Citizenship
Slide 32
WACKER SILICONES
Overview
34
Portfolio and 35 Markets
Application Map 36
Growth Drivers 38
Strengths
39
Meeting Challenges
42
WACKER SILICONES: AN INTEGRATED GLOBAL PLAYER IN A LEADING MARKET POSITION

Supply Chain
Raw Materials Upstream
Pyrogenic Silica Silicon Metal Silanes Methanol Siloxanes Closed loop operation HCl
Sites
Downstream Silicones
Intermediates Polymers Fluids Resins Emulsions Silica Particles Specialty Silanes Compounds Sealants Elastomers Emulsions Defoamers Release Agents CMP Slurries
Adrian Chino
Nuenchritz North Canton Burghausen Kempten Zhangjiagang Calcutta
Akeno Shanghai
Performance Materials for the Processing Industry
Jandira
Competitive Landscape 2010

Silicones
Momentive 19% WACKER 16% Bluestar 8%
Market Characteristics
Pyrogenic Silica
Cabot 21% WACKER 23%
Reduced cyclical vulnerability through market diversity Historic growth rates 3% above worldwide GDP High entry barriers (capital and technology) Megatrends spur sustainable market growth Innovations broaden scope of applications Substitution of carbon-based materials
9.2bn
Dow Corning Others 8% 36%
* Source: WACKER estimates
900 Mio
Evonik 35%
Tokuyama 12%
Shin-Etsu 13%
Others 9%
WACKER SILICONES
Overview
Portfolio and Markets
Application Map
Growth Drivers
Strengths
Meeting Challenges
Slide 34
SILICONES CREATE VALUE IN MANY PROCESSING INDUSTRIES

Market Structure by Application Segment
Paper Construct./Renovat.
Others 7% 5%
Textile
20%
Chemical Industry
6% 11% Market 2010 9.2bn* 10% 16%
Energy / Electronics
Health & Wellness
Plastics
12%
13%
Automotive
* Source: WACKER estimates
WACKER SILICONES
Overview
Application Map
Growth Drivers
Strengths
Meeting Challenges
Slide 35
UNIQUE PROPERTIES OF SILICONES SUPPORT GLOBAL MEGATRENDS IN CONSUMER PRODUCTS

Silicones: a Unique Set of Product Properties
Flexibility Hydophobicity Glossiness Adhesion Dielectricity Insulating Softening UV-stability Foam control Durability Heat resistance Radiation resistance Transparency Discharge safety Release properties Superior performance in consumer goods Advanced processability Unique property profiles Tailoring of customized solutions
Megatrends Drive Silicones Growth
Mobility/Fuel Efficiency Construction

WACKER SILICONES Overview
Convenience/Fashion Health & Wellness

Portfolio and Markets Application Map Growth Drivers Strengths
Safety
Meeting Challenges
Slide 36
SILICON METAL INTEGRATION PROVIDES LONG-TERM SUPPLY STABILITY

Silicones Supply Chain
Raw Materials Upstream
Pyrogenic Silica Silicon Metal Silanes Methanol Siloxanes Closed loop operation HCl
Overview Holla Metal in Trondheim

Downstream Silicones
Intermediates Polymers Fluids Resins Emulsions Silica Particles Specialty Silanes Compounds Sealants Elastomers Emulsions Defoamers Release Agents CMP Slurries
48 kt silicon metal capacity and 24 kt microsilica as a by-product Direct shipping via own quay Certified production according to ISO 9001 and 14001 Process: carbo-thermic reaction of silica (quartz) in an electric arc furnace at ~1,800C
Performance Materials for the Processing Industry
Silicon Metal Global Uses 2011
Global Silicon Metal Production 2011 Alloys Americas 20% Western Europe 17% 55% China
34% Silicone 57% 9% Electronic/Solar

Source: CRU / WACKER estimates
8% ROW
Source: CRU 7 Wacker estimates
WACKER SILICONES
Overview
Application Map
Growth Drivers
Strengths
Meeting Challenges
Slide 37
ABOVE-AVERAGE GROWTH IN SILICONES BASED ON THREE PILLARS

Innovation
WACKER LUMISIL WACKERs unique UV crosslinking technology enables dispensing of LED lenses in one step instead of molding, potting and assembling. The UV technology can also be applied to various other applications. WACKER POWERSIL Silicone elastomers substitute for conventional ceramics as insulating materials in power transmission and distribution. Advantages are long-term durability, low temperature flexibility, hydrophobicity and dielectric properties. WACKERs global presence A new middle class is growing in emerging economies. Increasingly affluent consumers orient themselves to western lifestyles. With 12 production sites worldwide and Technical Centers in regions of the most vibrant economic growth, WACKER SILICONES is well prepared to deliver tailor-made solutions to the customer.
Key to continuous product improvement Extension of the scope of silicone applications by new product classes Increased productivity and margins by competitive production processes
Substitution
As a non-carbon polymer, silicones have a unique property profile. Silicones have the potential to substitute organics and other products in many applications.
Globalization Globalization
WACKER SILICONES
Overview
Application Map
Growth Drivers
Strengths
Meeting Challenges
Slide 38
INCREASING PENETRATION OF FASTEST GROWING MARKETS

Market Structure Silicones Industry 2002 2010 WACKER SILICONES Highlights Asia Significant gain of market share in China and India Joint ventures with Dow Corning in Zhangjiagang
34% 35% 37% 27%
- access to world-scale siloxane production - siloxane to go on-stream by end of decade - production of fumed silica started in 2008
37% 34% 35% 30%
Downstream facilities in Zhangjiagang - sealants production running since Feb 2007 - elastomers on-stream since April 2006 Joint venture with Dymatic in China - JV for textile auxiliaries develops above expectations - production in Zhangjiagang to start mid 2008 Technical Centers in Shanghai, Singapore, Calcutta and Akeno
31% 31% 2002 Americas Asia 33%
36%
2010 Europe
* Source: WACKER estimates; shares based on sales
WACKER SILICONES
Overview
Application Map
Growth Drivers
Strengths
Meeting Challenges
Slide 39
SILICONES: LEVERAGING INNOVATION TO CREATE VALUE ON MULTIPLE LEVELS

Upstream Downstream
Siloxan, Fumed Silica Centralisation
Capex Intensity
Formulation and compounding according to market requirements
DeCentralisation
Additives
Oils
Resins
Emulsions
Silane
Industries
WACKER SILICONES
Overview
Application Map
Growth Drivers
Strengths
Meeting Challenges
Customer Orientation
Slide 40
WELL POSITIONED FOR SUSTAINED PROFITABILITY GROWTH

WACKER SILICONES Competitive Advantages and Strengths Highest level of integration in the industry Increasing share of specialties in production mix No. 1 or 2 in selected segments (e.g. building preservation, elastomers for transportation and energy, pyrogenic silica for merchant market) Dedicated activities in fastest growing Asian market remain on track despite the actual downturn Two world-scale upstream sites in Burghausen and Nuenchritz Building a new third fully integrated site in China with market leader Dow Corning Global footprint in downstream operations Increasing market access through joint ventures
WACKER SILICONES
Overview
Application Map
Growth Drivers
Strengths
Meeting Challenges
Slide 41
MARKET RECOVERS TO GROWTH: MOVING FORWARD WITH REGAINED STRENGTH

Strategic Focus in Current Market Environment Strategic Focus Our Actions Focus on Megatrends like Energy Savings with innovative materials for LED or insulation
Innovation
Substitution
Utilize potential of silicone based materials for example for Megatrend Construction conservation
Globalization
Capitalize on trend Improvement of Living Quality on population in emerging regions with high growth rates
WACKER SILICONES
Overview
Application Map Growth Drivers
Strengths
Meeting Challenges
Slide 42
WACKER POLYMERS
Overview
44
Growth Drivers 46
Business Strategy Setup
Strengths 48 49
Meeting Challenges
50
WACKER POLYMERS: SETTING THE STANDARDS

Supply Chain
Raw Material Upstream Downstream Dispersions Silicone VAE Ethylene DPP Key Markets Construction Automotive Building Eng. Fabrics Textile Rubber tire Adhesives Chem. Mat. Food Coatings & Inks Arch. Coatings
VAE = Vinyl acetate ethylene, VAM = Vinyl acetate monomer, PVAc = Polyvinyl acetate, PVOH = Polyvinyl alcohol DPP = Dispersible Polymer Powders
Global Set Up
Moscow Allentown Calvert City Cologne Burghausen Suwon Nanjing Beijing Ulsan Shanghai Singapore
Acetic Acid
VAM PVAc PVOH
Dubai Mumbai
Sao Paulo Melbourne Dispersion production Powder production Technical center
Capacity Shares 2010*

Dispersible Polymer Powders VAE Dispersions
Market Position
Global No. 1 in Dispersible Polymer Powders (DPP) Leading global supplier of VAE dispersions for adhesive, coatings and nonwovens applications Global market penetration Presence in all key markets via Technical Centers
Others
WACKER and 2nd in the market >60%
Others
WACKER and 2nd in the market >45%
*Source: WACKER estimates WACKER POLYMERS
Slide 44
POLYMERS PRODUCTS ARE SERVING DIVERSE END-INDUSTRIES

Market Structure by Application Segment 2010
Automotive Construction Ceramic Tile Adhesives
2% 15% 16%
Adhesives
External Thermal Insulation Systems
~60% 60%
Market portfolio 2010 13% 15%
Nonwovens, Textiles and Paper
Self Leveling Compounds
8% 10% 1%
1% Others
Coatings & Paints
WACKER estimates WACKER POLYMERS Overview Portfolio and Markets Growth Drivers Business Setup Strengths Meeting Challenges
Slide 45
GLOBAL LEADERSHIP IN A GROWTH MARKET

Production Volumes for (VINNAPAS) Powders
Past Production Volumes for VINNAPAS Powders effect of global crisis Industry Specific CAGR
WACKER Construction Polymers Europe 2004 2010 Global construction spending (real)* 2004 2010
~10%
recovery
~3%
*Source: IHS press anouncement
1988
1993
1998
2003
2008
Drivers of Ongoing Growth

Global & Regional Development Growing markets: Brazil, China, SEA, India, South & Central Europe Established markets (W. Europe, N. America) with slower growth and urge for innovation Consumer Care and coatings with differing cycles comp. to construction
,
Megatrends Urbanization / Improving living conditions Energy savings / Water conservation Global efforts to reduce CO2 emissions Green Building Substitution & New Applications Low VOC & environmental awareness Substitution of traditional mortar systems
WACKER POLYMERS
Overview
Growth Drivers
Business Setup
Strengths
Meeting Challenges
Slide 46
POLYMERS WITH A STRONG FOCUS ON ENHANCING ITS ASIA ENGAGEMENT

2009 2010
Testing center Vietnam
Inauguration Nanjing TC India opening Production records in Ulsan
TC Korea opening
WACKER POLYMERS
Overview
Growth Drivers
Business Setup
Strengths
Meeting Challenges
Slide 47
STRENGTHENING THE TECHNICAL CENTER NETWORK TO SUPPORT MARKET DEVELOPMENT

Global WACKER Technical Centers and WACKER ACADEMY for Close-to-Customer Market Development in all Growth Regions
Moscow Burghausen Allentown Dubai Beijing Zhangjiagang Suwon Shanghai Singapore
Mumbai
Sao Paulo Melbourne
Training & Competence center Modern seminar rooms and state-ofthe-art laboratories Hands-on demonstrations Seminars related to industries and technologies Platform to share know-how with customers and partners
Technical Center
Technical Center & WACKER Academy
Market Penetration Technical Centers Local cooperation's
Product Availability Production expansion Large distribution network
Know-how WACKER ACADEMY Symposia / Conferences
WACKER POLYMERS
Overview
Growth Drivers
Business Setup
Strengths
Meeting Challenges
Slide 48
LEVERAGING INTEGRATION TO DEFINE GROWTH

WACKER POLYMERS Competitive Advantages and Strengths Market leader in Dispersible Polymer Powders Leading in VAE dispersions for adhesive, coatings and engineered fabrics applications Defining the market in construction applications Regional market development through Technical Centers Innovations and new applications to benefit from megatrends Vertically integrated value chain with leading edge plants Strong focus on production technology and productivity
Meeting Challenges
WACKER POLYMERS
Overview
Growth Drivers
Business Setup
Strengths
Slide 49
STRATEGY HAS BEEN ALIGNED TO FOCUS ON LONG-TERM GROWTH

Strategic Focus in Current Market Environment Strategic Focus Regional market strategies Our Actions Increase market penetration to early capture regional market growth opportunities Strong support of key accounts
Productivity & Process excellence
Productivity focus and operational excellence Active capacity management
Innovation to differentiate
Megatrends will drive long-term growth: related innovation in focus (e.g. energy & resource savings) New application development beyond existing core segments
WACKER POLYMERS
Slide 50
WACKER BIOSOLUTIONS
Overview
52
Products and Applications 53
Strengths
60
Meeting Challenges
61
WACKER BIOSOLUTIONS: FOCUSING ON ATTRACTIVE NICHES

Supply Chain
Raw Material Upstream Biologics Downstream Key Markets Biopharmaceuticals Keymarkets Food & Flavor/ Healthcare/ Pers. & Home Care Life Sciences Life science
Starch/Dextrose
Cyclodextrins / Cysteine Gumbase
Ethylene
Ketene
Chem. Intermediates
Consumer care Chem. Mat.
Business Structure
Nutrition / Gum
Food and Cosmetics Cyclodextrins, Cysteine Encapsulated Coenzyme Q10 Cysteine as Food ingredients Gumbase Gum base resin for Chewing Gum production
Biopharmaceuticals
6% 61%
Sales 2010: 142m
Drugs Strong technology and IP position in protein secretion and high cell density fermentation used for biologics production
Pharma/Agro
33%
Example acetyl acetone Intermediate for drugs or pesticides Key intermediate in heterocyclic chemistry
Slide 52
WACKER BIOSOLUTIONS
Overview
Products and Applications
Strengths
Meeting Challenges
LEADING POSITIONS IN ATTRACTIVE SPECIALTY MARKETS

Product Characteristics and Applications
Solutions for selective encapsulation and controlled release WACKER CAGR (20022010): 19%
Household 34% 9% 12% 14% 31% Food Pharma Others Food 82% Personal Care Pharma Others
Cyclodextrins
WACKER market share: market leader*
Advanced production process based totally on vegetable raw materials
15% 2%
Cysteine
WACKER market share: market leader in vegetarian grade WACKER CAGR (20022010): 39% High quality gumbase resin portfolio for all gumbase applications
Gumbase
WACKER market share: market leader* WACKER CAGR (20022010): 8%
Food 100%
*Source: WACKER estimates WACKER BIOSOLUTIONS Overview Products and Applications Strengths Meeting Challenges
Slide 53
NEW APPLICATIONS DRIVE GROWTH IN CYCLODEXTRINS

Cyclodextrin Effects and Selected Applications
WACKER is the only manufacturer of Cyclodextrins with a world-scale plant able to produce all types: Alpha-, Beta- and Gamma-Cyclodextrins. Beverages Vitamin & Catechin water, Catechin-rich green tea
Cyclodextrins enables the following effect (examples): - Masking - Stabilizing - Making bioavailable
WACKER BIOSOLUTIONS Overview Products and Applications Strengths Meeting Challenges
Dietary Supplements CoQ10--CD complex
Slide 54
SOLID DEMAND GROWTH FOR VEGETARIAN CYSTEINE

Cysteine Properties and Selected Applications
Main product properties of WACKERs fermentation-grade Cysteine: - Non-human non-animal origin - Vegetarian - Kosher and Halal - Compliant with all major food and pharma standards - GMP standards - HACCP standard
Dough addition
Natural flavors
Pharma
WACKER BIOSOLUTIONS
Overview
Strengths
Meeting Challenges
Slide 55
LEVERAGING A LEADING GLOBAL MARKET POSITION IN GUMBASE

Gumbase Resin Production Sites and Selected Applications WACKER is the only manufacturer with production plants in two continents Chewing gum applications following the new trend functional chewing gum according to customer needs, e.g.: Teeth whitening
WACKER
64% 64%
WACKER
Staying awake Providing energy Wellness
WACKER BIOSOLUTIONS
Overview
Strengths
Meeting Challenges
Slide 56
KEY BIOTECH TECHNOLOGY PLATFORMS FOR GROWTH WITH NEW PRODUCTS

Protein Production
Protein secretion a high yield, low cost proprietary system of WACKER e.g. for enzyme manufacturing
Biotransformation
Enzymes as selective catalysts for the synthesis of complex organic chemicals e.g. production of cyclodextrins using starch as renewable raw material
Metabolic Engineering
Bacterial strains optimized by rational genetic design for the fermentative production of small organic molecules e.g. production of the amino acid L-cysteine by large scale fermentation
WACKER BIOSOLUTIONS
Overview
Strengths
Meeting Challenges
Slide 57
WACKER BIOTECH OFFERS PROCESS DEVELOPMENT AND GMP MANUFACTURING OF BIOLOGICS

Process Development Building Wacker Biotech is a Custom Manufacturing Organization specialized in the production of biologics (biopharmaceuticals). Wacker Biotech offers cell line development, process development and GMP production to customers from Pharma and Biotech industry. Biopharmaceuticals The site in Jena, Germany was expanded in 2008 2009. Wacker Biotech focuses on technologies that enable production of novel protein classes and push productivity.
WACKER BIOSOLUTIONS
Overview
Strengths
Meeting Challenges
Slide 58
HIGH PRODUCT YIELDS AND COST SAVING WITH WACKERS INNOVATIVE TECHNOLOGIES
Proprietary Technologies of Wacker Biotech DENSETEC High Cell Density Fermentation Improves the yield per batch.
ESETEC E. coli Secretion Technology Enables the highly efficient production of antibody fragments and new scaffold proteins. Optimizes overall yields, simplifies the down stream purification and thus reduces cost of goods.
WACKER BIOSOLUTIONS
Overview
Strengths
Meeting Challenges
Slide 59
WELL POSITIONED FOR GROWTH IN ATTRACTIVE NICHES
WACKER BIOSOLUTIONS Competitive Advantages and Strengths Specialty products for attractive selective food and life sciences markets. Leading market position in cyclodextrins, cysteine and gum base resin. Unique manufacturing processes based on renewable raw materials (White Biotechnology). World-scale plant for cyclodextrins. High yield production processes based on proprietary technologies. Strong technology and unique IP positions in biologics.
WACKER BIOSOLUTIONS
Overview
Strengths
Meeting Challenges
Slide 60
FOCUS ON FOOD AND PHARMA INDUSTRY AIMING FOR PROFITABLE GROWTH

Actions are Aligned to Growth Strategy
Strategic Focus Expand and Keep Market Share Growth of Bio businesses Expand market share in Gum Resin Business Intensify customer cooperation Our Actions
Manage Cost
Intensify productivity management Cost optimization in supply chain of Chemicals
Seek Opportunities
Commercialization of new solutions Active price management Intensify product innovations to open up new businesses
Products and Applications Meeting Challenges
WACKER BIOSOLUTIONS
Overview
Strengths
Slide 61
WACKER POLYSILICON
Overview
63
Growth Drivers 66
Competitive Landscape
67
Business Setup 69
Strengths
71
Meeting Challenges
72
WACKER POLYSILICON: INTEGRATED OPERATIONS BASED ON SILICON METAL

Production Chain
Raw Material
Silicon metal Salt
Global Footprint
Downstream Elec. Wafer Key Markets Semiconductors Solar Modules Automotive Coatings, Paints Chemical Materials Nnchritz Burghausen Cleveland, Tennessee Seoul Tokyo Shanghai
Upstream Polysilicon
Silicon Metal
San Jose
Hydrogen
Pyrogenic Silica
Production site and head office Sales and application representatives Production site
Competitive Landscape (Market Share)

Other 20 % Tokuyama 6% MEMC 6% REC 8% WACKER 19 %
Supply & Demand

500 400 300
expected capacities (other) expected capacities (Tier 1) Total Demand (High Case) Total Demand (Low Case)
2010
Hemlock 20 %
200 100
GCL 10%
OCI 11 %
Source: Industry announcements; WACKER estimate
2010 2011 2012 2013 Sources: Gartner, market surveys, industry announcements, WACKER estimate
Slide 63
WACKER POLYSILICON Overview Portfolio and Markets Growth Drivers Competitive Landscape Business Setup Strengths Meeting Challenges
MEETING THE DEMAND OF SOLAR AND SEMI APPLICATIONS

Polysilicon Market Structure by Application Segment
Semiconductor Solar
25 % 75 %
Grid-connected systems
market share
Market 2010: 6.8bn

Remote habitation
Semiconductor market Solar market
Remote industrial
>6 %
>30 %
Expected Annual Growth
Consumer applications
Sources: WACKER estimates; Semiconductor: Gartner, Solar: EPIA

Slide 64
PRODUCT PORTFOLIO: BROADEST POLY OFFERING IN THE INDUSTRY

Polysilicon Product Portfolio
Polysilicon chunks for semiconductor and photovoltaic applications Polysilicon rods in the form of cut rods, CZ recharge rods and float zone rods
Salt
Granular polysilicon for continuous crystallization processes, energy efficient
Slide 65
GROWING WITH THE MARKET FULL PRODUCTION POTENTIAL AT ALL PLATFORMS UP TO 150KT
Actual / Expected Polysilicon Production (MT)
End of 2011 Poly 9 begins ramp to 15kt >33,000 30,500 18,100 6,200 8,100 11,900
>45,000
>50,000
+ Tennessee Expansion
2006
2007
2008
2009
2010
2011e 2012e 2013e
End of 2013 Ramp Begins at Poly 11 Tennessee

Slide 66
CRYSTALLINE PV WILL BE THE DOMINATING TECHNOLOGY FOR THE FORESEEABLE FUTURE

PV Technology Market Shares 2010 Market Dynamics
Availability of Polysilicon Cost-effective potential Achievable efficiency General ecological viewpoints
CdTe; 9% -Si; 3% CIGS; 1% Ribbon; 2%
Other; <1%
Monocrystal; 27%
Multicrystal; 58%
Sources: Photon, Prometheus, industry announcements, WACKER analysis
Slide 67
WACKER POLYSILICON: SUPPORTING THE PHOTOVOLTAIC INDUSTRY

PV Cost Drivers Depend on Quality of Polysilicon
High yields in ingot production Shorter process time LTA* priced to support grid parity
WACKER contribution
Cost = Watt
High efficiencies Long-term stability More electricity generated
*LTA = Long-Term Agreement Slide 68

WACKER FIRST CLASS FULLY INTEGRATED TECHNOLOGY CLOSED LOOPS FOR KEY AUXILIARIES
HCl Membrane Electrolysis + HCl Synthesis Salt from WACKERs mine H2 POLYSILICON TCS Production TCS Purification Polysilicon Deposition
Metallurgical Silicon
H2 Conversion of SiCl4 SiCl4 PYROGENIC SILICA Silicone Chemistry HCl Pyrogenic Silica Production
Slide 69
O2 (air)
TWO TECHNOLOGIES TO MEET OUR CUSTOMERS NEEDS

State of the Art TCS Process
Silicon rods Bell jar reactor PolySi U-rod PolySi slim rod Crushing Chunk Polysilicon Exhaust gas Quartz tube Reaction zone Heating zone Milling
magnified
Fluidized Bed TCS Process for Granular

Seed particles
Granular Polysilicon
TCS + H2 Exhaust Electrical Power Gas
Resistive heater
H2 H2 TCS + H2
TCS Chunks characteristics Switchable reactors (Electronic/Solar) Large scale production >50 years Time proven process fast ramp up
TCS Granular characteristics Continuous deposition based on fluidized bed technology Trichlorosilane as feed gas for high product yields Reduced energy consumption
Slide 70
WACKER POLYSILICON
Overview
Growth Drivers
Business Setup
Strengths
Meeting Challenges
BEST IN CLASS TECHNOLOGY AND ECONOMICS

WACKER POLYSILICON Competitive Advantages and Strengths
More than 50 years of expertise in polysilicon First in class with a dedicated poly grade for solar applications Switchable reactor technology for polysilicon chunks (semi/solar grade) First in class with a commercial trichlorosilane based continuous process for granular polysilicon Low specific energy consumption Unique operations setup with fully integrated processes for polysilicon and byproducts Strong in-house engineering for accelerated build-up of new plants
Slide 71
WACKER POLYSILICON Overview Portfolio and Markets Growth Drivers Competitive Landscape Business Setup Strengths Meeting Strategy Challenges
POLYSILICON IS A HIGH GROWTH AND HIGH MARGIN BUSINESS

Strategic Focus in Current Market Environment Strategic Focus Keep Market Share Developing balanced customer portfolio Ramping up capacities on time Our Actions
Manage Quality
Maintain excellent quality level of our products Intensify cooperation with customers
Manage Costs
Continued cost improvements through process optimization and product innovation Build world-scale sites - lifting more productivity potential
Slide 72
Overview Portfolio and Markets Growth Drivers Competitive Landscape Business Setup Strengths Meeting Challenges
WACKER POLYSILICON
Siltronic
Overview
74
Growth Drivers 77
Strengths
80
SILTRONIC: A FULLY INTEGRATED WAFER MANUFACTURER CLOSE TO ITS CUSTOMERS
Value Chain
WACKER Polysilicon Siltronic Ingots Wafer Key markets Semiconductors
Global Presence for a Global Market

Freiberg Burghausen Hikari Singapore
Munich Portland
Textile Solar Rubber tire
Other Siltronic(1) Covalent 5% 13% 5% LG-Siltron 9% MEMC 8% SUMCO 29% Shin-Etsu 32%
Wafer diameter drives consolidation Fewer Players in Larger Diameters

Cemat Covalent Gritek Haina Komatsu LG-Siltron MCL Luyoang MEMC Okmetic SAS Shin-Etsu Siltronic Sumco Tatung Terosil Waferworks
16
Covalent Komatsu LG-Siltron MEMC Shin-Etsu Siltronic Sumco
Covalent LG-Siltron MEMC Shin-Etsu Siltronic Sumco
(1) Without SSW sales / Source: Gartner Revenue Shares 2009 (May 2010)
150 mm
200 mm
300 mm)
Source: WACKER estimates
Siltronic
Overview
Growth Drivers
Meeting Strengths Business Setup Challenges
Slide 74
WE HAVE BEEN GROWING 300 MM IN GERMANY AND IN OUR JOINT VENTURE FUTURE FOCUS WILL BE IN THE JV
Siltronic Production Sites

Freiberg Portland Burghausen
300 mm Capacities in K W / Mo
Hikari CAGR +24% Singapore SSW
Pulling 300 mm 200 mm SD Singapore Hikari Portland Burghausen Freiberg SSW

Siltronic Overview Portfolio and Markets Growth Drivers
2006
2007
2008
2009
Germany
2010
Asia incl. SSW

Strengths Meeting Business Setup
Slide 75
Challenges
~80 PERCENT OF THE GLOBAL SEMICONDUCTOR INDUSTRY IS DRIVEN BY CONSUMER DEVICES INCL. PCS AND MOBILE PHONES
Semiconductor Market Structure by Application Segment
Unit Growth Rate Forecast 2011 vs. 20102

Consumer
Automotive 8% 11% Industrial/Military Market 2010: USD 298.3 bn1 22% 41% 18%
LCD TVs:
Communications
13%
Mobile Phones: 13%
PC/Computer
PCs:
10%
(1) World Semiconductor Trade Statistics (WSTS), March 2011; (2) Gartner March 2011
Siltronic
Overview
Growth Drivers Growth Drivers
Strengths
Meeting Challenges
Slide 76
GROWTH IN SEMI UNITS AND WAFERS IS HIGHLY CORRELATED
Semiconductor Units (mn) and Wafer Area (mn cm2) per Year
mn units 800 700 600 500 400 300 200 100 2004 2006 2008 1998 1984 1986 1988 1990 1992 1994 1996 2000 2002 2010 0 30,000 20,000 10,000 0 mn cm2 70,000 60,000 50,000 40,000
Source: Industry, WSTS
Semiconductor
Wafer
Siltronic
Overview
Growth Drivers
Strengths
Meeting Challenges
Slide 77
SILICON MARKET ON A LONG-TERM GROWTH PATH, BUT VOLATILE
Market Volume in mn cm2 and Growth Rate in %

mn cm2 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1980 CAGR 1990 - 2010: 7 % 4 outliers in 20 years: in 1992, 1998, 2001 and 2008/09
Siltronic Overview Portfolio and Markets Growth Drivers Strengths Meeting Challenges
Source: VLSI, SEMI
45% Silicon Area 20-year CAGR 40% 35% 30% 25% 20% 15% 10% 5% 0% 1985 1990 1995 2000 2005 2010
Slide 78
EACH GENERATION RAMPS TO A HIGHER VOLUME, AND HAS A LONGER LIFE
Development of Wafer Diameters and Growth

3,000
.
mn cm2 / month 3 MMA
2,500 2,000 1,500 1,000 500 0
125 mm 150 mm 200 mm 300 mm
1991
1993
1995
1997
1999
2001
2007
2009
1987
1989
2003
300 mm becomes the working horse with over 50 % of all silicon consumed 200 mm wafer down below 30 % share 150 mm and 125 mm around 13 % and 3 % respectively
Siltronic Overview Portfolio and Markets Growth Drivers Strengths Meeting Challenges
2005
Source: SEMI up to Apr 2011 Slide 79
2011
A LEADING PLAYER IN SEMI WAFERS
Siltronic Competitive Advantages and Strengths No. 3 wafer supplier Strong customer base Full market access on 300 mm Accelerating growth through partnering with customers Following customers to Asia Strongly focused on productivity Quality leadership Secured polysilicon supply
Siltronic
Overview
Growth Drivers
Strengths
Meeting Challenges
Slide 80
PREPARED TO COPE WITH THE GLOBAL ECONOMIC CHALLENGES
Strategic Focus in Current Market Environment

Strategic Focus Target to grow at least with the market Keep Market Share Intensify customer cooperation Support customers with innovations Our Actions
Targeting fix and variable cost improvements Manage Costs Focus on productivity Tight working capital management
Prepare for future growth
Maximize access to markets Efficient global customer support
Siltronic
Overview
Growth Drivers
Strengths
Meeting Challenges
Slide 81
WACKER: ISSUER, CONTACT AND ADDITIONAL INFORMATION

ISSUER AND CONTACT
Wacker Chemie AG Hanns-Seidel-Platz 4 D-81737 Munich Investor Relations contacts
Mr. Joerg Hoffmann Tel. +49 89 6279 1633 joerg.hoffmann@wacker.com
ADDITIONAL INFORMATION
ISIN: WKN: Deutsche Brse: Ticker Bloomberg: Ticker Reuters: Listing: DE000WCH8881 WCH888 WCH CHM/WCH.GR CHE/WCHG.DE Frankfurt Stock Exchange Prime Standard
Mrs. Judith Distelrath Tel. +49 89 6279 1560 judith.distelrath@wacker.com
Mrs. Manuela Ellmerer Tel. +49 89 6279 2769 manuela.ellmerer@wacker.com
Slide 82

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WACKER CHEMIE AG FACTBOOK 2011

Investor Relations, May 2011

WACKER CHEMIE AG FACT BOOK 2011: CONTENTS

Research and Innovation

WACKER POLYSILICON Siltronic

Overview Products and Applications Strengths Meeting Challenges

Overview Portfolio and Markets Growth Drivers Strengths Meeting Challenges

Organizational Integrated 4 Structure 7 Production

Global Network Research and Sustainability 10 Innovation 11 12

WACKER: MORE THAN 90 YEARS OF HISTORY

Research and Innovation

DIVERSIFIED END MARKET PORTFOLIO

WACKER 2010 Chemical Industries

Total Sales by Industries

Research and Innovation

WACKER INTEGRATION ALONG AND BETWEEN VALUE CHAINS

Group Sales in 2010: 4,748bn

Sales Performance by Region in 2010

25% 36% 19% 17% 3%

Research and Innovation

FIVE SPECIALISTS UNDER ONE ROOF PRODUCT OVERVIEW

WACKER POLYMERS Construction Polymers Dispersions Acetyls

WACKER BIOSOLUTIONS Food Pharma / Agrochemical Biopharmaceuticals

Research and Innovation

WACKER: JOINT VENTURE STRUCTURE AND THEIR ACCOUNTING

WACKER SILICONES WACKER 51%

Dow Corning (Hldg.) Siloxane

Siltronic Samsung 50%

Research and Innovation

WACKER: HIGHLY INTEGRATED OPERATIONS BASED ON FOUR KEY RAW MATERIALS

Ethylene Acetic Acid Starch/Dextrose

VAE VAM Microb. Fermentation

Dispersible Polymer Powders (DPP) PVAc Therapeutic Proteins Food ingredients

Research and Innovation

GLOBAL FOOTPRINT MOVING MANUFACTURING CLOSER TO CUSTOMERS

Asia and Rest of the World

Customer-centered locations: 26 Production Sites 20 Technical Centers

Production Site Technical Center Production Site and Technical Center

Research and Innovation

INNOVATION AT THE CORE OF WACKERS BUSINESS STRATEGIES

Historically High Levels of R&D Spending

5.0 4.0 3.0

Research and Innovation

SUSTAINABILITY IS A KEY PART OF WACKERS BUSINESS PROCESSES

* BG Chemie: Accident Insurance & Prevention Asso., German Chemical Industry

Research and Innovation

EMPLOYEE DEVELOPMENT IS KEY WE GO THE EXTRA MILE

Vocational Training Programs

Management assistant etc.

WACKER invests in the future

SUSTAINABILITY - A CORE ELEMENT OF OUR CORPORATE STRATEGY

Research and Innovation

WACKER ADDS VALUE THROUGH INTEGRATED PRODUCTION AT ITS SITES

INTEGRATED PRODUCTION CREATES VALUE FOR WACKER ON SEVERAL LEVELS +

A FOCUS ON SAFETY IS THE FOUNDATION OF OUR WORK

One global standard