CREATING TOMORROW`S SOLUTIONS
International Press Workshop 2018
WACKER POLYMERS – Polymer Binders in Everyday Life
Peter Summo, WACKER POLYMERS, March 14th, 2018
4 4
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.
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 1
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Agenda
WACKER POLYMERS: Creating Value with Binders in a Wide Variety of
Applications
WACKER POLYMERS: Successfully Transforming Global Markets with VAE
Binders and Outperforming Alternative Systems
WACKER POLYMERS: Preparing the Ground for Future Growth
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 2
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Polymer Binders – Invisible, but Indispensable in our Daily Life
Construction Polymers Consumer and Industrial Polymers
Tile Insulation Flooring Printing Inks Nonwoven Heat Seal
Adhesives Systems Lacquers
Water Proofing Plasters Skim Coat Paper and Industrial Carpet
Membranes Packaging Coatings
Concrete Gypsum Asphalt Paints and Wood / Automotive
Coatings Furniture
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 3
Peter Summo, WACKER POLYMERS, March 14th, 2018
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WACKER POLYMERS: Solutions for Polymer Based Binders
WACKER POLYMERS Polymer-Based Binder Solutions
One of the leading providers of high-
Dispersible
quality binders and polymeric additives Dispersions Polymer
Solid
Polymers
Powders
Share of Group Sales 2017
25%
Base for POLYMERS Binders
Key Figures 2017 Polyvinyl acetate, polyvinyl alcohol,
Sales: 1,245 mn € co- and terpolymers based on vinyl
EBITDA: 206 mn € acetate, ethylene, vinyl chloride and
acrylates
Employees: 1,539
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 4
Peter Summo, WACKER POLYMERS, March 14th, 2018
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VAE Technology Creates Value in a Wide Variety of Applications
Vinyl Acetate Ethylene (VAE) – Enabling Tailor-Made Solutions
Dispersible
VAE Polymer
+ Dispersions Powders
(DPP)
Vinyl acetate Ethylene Vinyl acetate ethylene (VAE)
POLYMERS main product
groups
excellent high cohesion superior improved high dry and outstanding low odor, low excellent scrub
weatherability level workability flexibility wet strength machinability VOC* resistance
Environmentally friendly solutions with high functionality and versatility
* volatile organic compounds
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 5
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Leading Market Positions as VAE Binder Solution Provider
Global Market Position – Global Market Position –
Construction Polymers* Consumer & Industrial Polymers*
Others WACKER
Others WACKER
Dairen
Dow #1 #1
Dairen
Elotex** Celanese
Main market for DPP Main market for VAE dispersions
*Construction: DPP only / Consumer & Industrials:
Source: WACKER estimates, Kline Synthetic Latex Polymers 2016 w/o atmospheric, solid resins, VINNOL® resins
** part of Functional Chemicals within Akzo Nobel N.V.
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 6
Peter Summo, WACKER POLYMERS, March 14th, 2018
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WACKER POLYMERS with €600mn Growth in the Last Decade
Global Sales 2017:
€1,245mn*
in € mn
+7 % CAGR
1500
1000
500
0
2007 2017
Americas EMEA** Asia
in € mn in € mn in € mn
+13 % CAGR +3 % CAGR +13 % CAGR
600 600 600
400 400 400
200 200 200
0 0 0
2007 2017 2007 2017 2007 2017
* incl. Air Products Polymers acquisition in 2008
** Europe, Middle & Near East, and Africa
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 7
Peter Summo, WACKER POLYMERS, March 14th, 2018
4 4
Agenda
WACKER POLYMERS: Creating Value with Binders in a Wide Variety of
Applications
WACKER POLYMERS: Successfully Transforming Global Markets with
VAE Binders and Outperforming Alternative Systems
WACKER POLYMERS: Preparing the Ground for Future Growth
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 8
Peter Summo, WACKER POLYMERS, March 14th, 2018
4 4
WACKER POLYMERS with Strong Focus on Further Growth
Growth based on Customer Focus, Substitution and Innovation
Customer Customer proximity – close to customers in all key markets
Focus Differentiated individualized service and product offering
Push transformation in construction & lever new binder concepts
Substitution
Replacement of non-VAE technologies based on value offering
Products in core segments and productivity improvements
Innovation
New applications and products beyond existing core markets
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 9
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Providing Technical Competences Close to our Customers
WACKER POLYMERS: Globally present with 15 Technical Centers and
continuously investing in our global competence network
Moscow
Allentown
Burghausen Seoul
Istanbul
Dalton
Mumbai Shanghai
Mexico City Bogota Dubai
Singapore
Technical Center Bogota:
March 2016 Jakarta Technical Center Jakarta:
São Paulo May 2017
Melbourne
Technical Center Istanbul:
November 2017 Technical Center WACKER POLYMERS
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 10
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Growing with Tailwind from Global Megatrends
Drivers for WACKER POLYMERS’ Growth
1 bn 30% of global energy-related
6% CAGR
additional people in global greenhouse gas emissions Growth of the adhesive
middle class by 2025 are attributed to buildings market in India until 2020
49 tn $
Global demand in
200,000 2-5 x
higher VOC compounds found
$ infrastructure investments
from 2016 to 2030
people are added daily to
world´s urban population
inside US homes than outside
levels
We offer solutions for global megatrends like urbanization, higher living
standards, increasing environmental & health requirements
Sources: McKinsey Global Institute, IPCC, EPA, UNEP, UN Habitat – State of the World´s Cities, Frost & Sullivan
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 11
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Offering Solutions for Construction Applications
Main Growth Drivers Benefits from VAE Growth Potential
Dry Mortar Market
good adhesion
Higher
Sustainability With polymer
Standards flexibility
modification
abrasion resistance
open time 20%
cohesive strength
Increasing Demanding material savings
Labor Costs Substrates CO2-savings
80%
machinability and labor
productivity
Without polymer
modification
Supporting transformation in construction towards higher quality
Source: WACKER estimates
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 12
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Offering Solutions for Consumer & Industrial Applications
Main Growth Drivers Benefits from VAE Growth Potential
Polymer latex binder market
broad adhesion profile
Higher Sustainability
Others VAE
Productivity high cohesion level VAc-
excellent machinability copo
SBL
low emission
PVAc
low odor
Living Feedstock fast setting
Standards Advantage
flammability resistance
SA Acrylics
feedstock versatility of C1
chemistry non-VAE technologies:
PVAc = Polyvinyl acetate
SA = Styrene acrylics
VAc-copo = Vinylacetate copolymer
SBL = Styrene butadiene latex
Replacing non-VAE technologies based on value offering
Source: WACKER estimates, Kline Synthetic Latex Polymers 2016
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 13
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Innovation as Base for Future Growth of POLYMERS
Process Improvements Product Innovation
Productivity and Product enhancement
capacity gains and new product prop-
erties (e.g. via hybrids)
Digitalization
New Applications
Data mining
low emissions and
Production support Research & flammability resistance
Productivity Development in new applications
Sustainability Regionalization
Renewable materials Regional R&D compe-
Formaldehyde and tences (e.g. new pilot
APEO-free products reactor in Nanjing)
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 14
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Focusing on Sustainability Along the Entire Value Chain
Raw Materials Production Markets Recycling
Compostable
C1 in advantage Highest Compliant with
to C2-C6 efficiency regulatory
Access to Closed loop Enabler for our
renewables production customers and
focus on needs
Sustainability with impact on the whole value chain
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 15
Peter Summo, WACKER POLYMERS, March 14th, 2018
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Providing Sustainable Solutions for the Construction Market
CO2-Emission and Climate Protection Material Consumption
Cement production causes approxi- Besides fresh water, sand is the most
mately 5% of global man-made CO2- widely consumed natural resource
emissions Every year, some 15 bn tons of sand are
>10,000 kilowatt hours of heating mined for construction globally
energy escape through the walls of an China consumed more sand between
uninsulated detached house each year 2011 and 2013 than the USA in 100 years
WACKER POLYMERS’ products enable material savings and CO2-
emission reduction
Sources: WBCSD – Cement Sustainability Initiative, Dena, Freedonia, The Economist, USGS, Mineral Industry of China 1990-2013, The Washington Post
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 16
Peter Summo, WACKER POLYMERS, March 14th, 2018
4 4
Agenda
WACKER POLYMERS: Creating Value with VAE Binders in a Wide Variety of
Applications
WACKER POLYMERS: Successfully Transforming Global Markets with VAE
Binders and Outperforming Alternative Systems
WACKER POLYMERS: Preparing the Ground for Future Growth
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 17
Peter Summo, WACKER POLYMERS, March 14th, 2018
4 4
Unique Position with VAE Dispersions and DPP Tandem
WACKER’s Global VAE Dispersion and DPP Production Footprint
Dispersion Production
Americas EMEA Asia
WACKER
POLYMERS
DPP Production #1 in dispersions and in powders with 1 million
tons of VAE globally
Only producer with global presence of
production sites for VAE dispersions and DPP
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 18
Peter Summo, WACKER POLYMERS, March 14th, 2018
4 4
Continuously Expanding our Production Footprint
Latest Capacity Expansions 2015 2015 2017
Polymer powder Special mono- VAE dispersions
+ 50 kt mers + 3.8 kt + 60 kt
Germany Germany Germany
2015
VAE dispersions
+ 85 kt
USA
Cologne Burghausen
Calvert City Nanjing Ulsan
2013 2013 2014 2019 2019 2019
VAE dispersions VAE dispersions Polymer powder VAE dispersions VAE dispersions Polymer powder
+ 40 kt + 60 kt + 30 kt + 30 kt + >90 kt + 80 kt
South Korea China China Nanjing South Korea South Korea
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 19
Peter Summo, WACKER POLYMERS, March 14th, 2018
4 4
WACKER POLYMERS – Solutions for Binders Since 80 Years
Innovation in Existing and New Markets Solutions for Global Megatrends
Customer Proximity World Class Production Sites
International Press Workshop 2018 ‒ Polymer Binders in Everyday Life 20
Peter Summo, WACKER POLYMERS, March 14th, 2018
CREATING TOMORROW`S SOLUTIONS
International Press Workshop 2018
WACKER POLYMERS – Polymer Binders in Everyday Life
Peter Summo, WACKER POLYMERS, March 14th, 2018
