Wacker Chemie : Annual Report 2021 (incl. Consolidated Financial Statements, Combined Management Report, Report of the Supervisory Board, Appropriation of Profits, Report of the Executive Board pursuant to Section 289a (1) and Section 315 (5) of the German Commercial Code (HGB)

Annual ReportThe Chemical Industry - Creating Solutions for a Sustainable World

2021

For Our Shareholders - WACKER at a Glance

As an innovative chemical company, WACKER makes a vital contribution to improving the quality of life around the world. We want to continue developing and supplying solutions that meet our own expectations - namely to add value for our customers and shareholders, and to achieve sustainable growth.

WACKER at a Glance

€ million	Dec. 31, 2021	Dec. 31, 2020	Change in %
Results / Return
Sales	6,207.5	4,692.2	32.3
EBITDA1	1,538.5	666.3	>100
EBITDA margin2 (%)	24.8	14.2	n.a.
EBIT3	1,134.3	262.8	>100
EBIT margin2 (%)	18.3	5.6	n.a.
Financial result	-40.7	-44.9	-9.4
Income before income taxes	1,093.6	217.9	>100
Net result for the year	827.8	202.3	>100
Earnings per share (basic/diluted) (€)	16.24	3.81	>100
ROCE (%)	28.3	5.6	>100
Financial Position/Cash Flow
Total assets	8,134.3	6,950.5	17.0
Equity	3,100.4	1,691.8	83.3
Equity ratio (%)	38.1	24.3	n.a.
Financing liabilities	1,436.8	1,405.5	2.2
Net financial assets/net financial debt4	-546.5	67.5	n.a.
Capital expenditures5	343.8	224.4	53.2
Depreciation / amortization	-404.2	-403.5	0.2
Net cash flow6	760.8	697.7	9.0
Research and Development
Research and development expenses	164.2	156.6	4.9
Employees
Personnel expenses	1,475.1	1,329.4	11.0
Employees (December 31, number)	14,406	14,283	0.9
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 result, and income taxes.

• 4 Sum of cash and cash equivalents, noncurrent and current securities, and noncurrent and current financial liabilities

• 5 Intangible assets, property, plant and equipment, investment property, excluding right-of-use assets

• 6 Sum of cash flow from operating activities and cash flow from long-term investing activities (before securities)

Wacker Chemie AG - Annual Report 2021

Annual Report

2021

WACKERThe Chemical Industry - Creating Solutions for a Sustainable World

Key Events in 2021 2 The Chemical Industry -

Creating Solutions for a Sustainable World 3

a

For Our Shareholders

Letter to Our Shareholders 31

Executive Board 37

Report of the Supervisory Board 38

WACKER Stock in 2021 44

b

Combined Management Report

Group Business Fundamentals 49

Goals and Strategies 54

Management Processes 55

Statutory Information on Takeovers 58

Business Report 59

Earnings 65

Net Assets 70

Financial Position 73 Further Information on R&D,

Employees, Procurement,

Production, Sales and Marketing 76

Management Report of Wacker Chemie AG 82

Risk Management Report 87

Outlook 101

cConsolidated Financial Statements

Statement of Income 109

Statement of Comprehensive Income 110

Statement of Financial Position 111

Statement of Cash Flows 112

Statement of Changes in Equity 113

Reconciliation of Other Equity Items 114

Segment Information by Division 115

Segment Information by Region 116

Notes of the WACKER Group 117 Declaration by the Executive Board

on Accounting Methods and Auditing 174

Reproduction of the Independent Auditor's Report 175

dFurther Information

Supervisory Board, Executive Board, Declaration on Corporate Management, and Non-Financial Report

Supervisory Board 183

Executive Board 184

Declaration on Corporate Management 185 Separate Non-Financial Statement Combined

for the WACKER Group and for Wacker Chemie AG 195 Limited Assurance Report of

the Independent Auditor 216

Multiyear Overview 218

Chemical Glossary/Financial Glossary 220

List of Tables and Figures 224

Key Events - 2021

February

WACKER acquired all the shares in Genopis Inc., a contract manufacturer of pharmaceuticals. This acquisition can be seen as a strategic step in expanding biologics market growth.

Genopis was renamed Wacker Biotech US Inc. and manufactures pDNA for innovative therapeutic agents, such as nucleic acid-based gene therapies and vaccines.

May

Dr. Christian Hartel became Wacker Chemie AG's president & CEO. His predecessor, Dr.Rudolf Staudigl, retired at the end of the Annual Share- holders' Meeting on May 12. Angela Wörl joined the Executive Board as

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Personnel Director.

June

WACKER is setting a clear example when it comes to corporate climate protection and has become a sponsor of the KlimaWirtschaft foundation, whose aim is to establish effective free-market parameters conducive to climate protection.

Wacker Chemie AG - Annual Report 2021

Key Events

2021

July

The WACKER SILICONE AWARD was presented to Martin Oestreich, pro-fessor of synthesis and catalysis at the Technical University of Berlin. His basic research is greatly advancing the development of innovative cata- lysts. WACKER presented the €10,000 award during the 19th International Symposium for Silicon Chemistry, held digitally this time due to the pandemic.

WACKER published its online Sustain- ability Report for 2019/2020. Sustain- ability is a core element of WACKER's business model and one of the company's five strategic goals.

August

A Sino-German research team received the 2021 Alexander Wacker Innovation Award for its innovative process to make vinyl acetate-ethylene (VAE) polymer dispersions. The work of Henry Chen, Zhong Chen, Dr.Bernhard Eckl, Wilhelm Kaiser, Nelson Wang and Dr. Hans-Peter Weitzel has set a new yardstick in terms of product throughput and energy consumption. The €10,000 award was presented to them during the WACKER Innovation

Days.

October

WACKER acquired a 60-percent stake in SICO Performance Material Co., Ltd., a specialty silane manufacturer. Based in Jining, China, SICO is a leading pro- ducer of organofunctional silanes for high-performance adhesives, sealants, coatings and composite materials. WACKER, too, has decades of expe-rience in this field and this partner- ship is a way of further expanding its range of high-quality specialty prod- ucts in Asia.

Dr. Martin Brudermüller, CEO of BASF SE, was invited to visit the Burghausen plant by WACKER CEO Dr. Christian Hartel. The meeting was mainly devoted to the question of how the German chemical industry could meet the goal of climate-neutral production.

December

WACKER presented its new, ambitious sustainable development goals. The company is to pursue specific projects and measures to halve its greenhouse gas emissions by 2030.

The goals to cut emissions are in line with the Paris Agreement. As one of the world's leading manufacturers of specialty chemicals and polysilicon, WACKER is playing a major role in the energy transition and in reducing the impact of climate change. The company's aim is to achieve climate neutrality by 2045.

The Chemical Industry

Creating Solutions for a

Sustainable World

For WACKER, sustainability has an economic, ecological and social component. We see sustainability as respect for humanity and for the environment - respect that is grounded in responsible stewardship. In order to best meet our responsibilities to our world, we have set new, ambitious sustainable development goals. We have formulated a concrete roadmap for cutting our CO2 emissions in half by 2030 and will implement that roadmap consistently in the coming years. When it comes to protecting the climate, we are a driving force - in part because we also offer our customers solutions that allow them to achieve their own sustainability goals. Our applications and products for the global construction industry are one example of this. Throughout the world, the construction industry is by far the largest emitter of greenhouse gases, nearly 40 percent of which can be attributed to this sector. Cities, in turn, are the largest energy consumers. Even though they constitute just a few percent of the Earth's surface, cities account for over 70 percent of the demand for available energy. Our product portfolio offers solutions that conserve natural resources, save energy and reduce emissions. This annual report showcases the many different solutions we provide our customers with, including those in other industries, and demonstrates how we are forging ahead with sustainability at WACKER.

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Wacker Chemie AG - Annual Report 2021