During the year, WACKER specified and revised the targets originally set at the start of the year. The revisions affected the statements on EBITDA and net financial debt. As forecast, WACKER grew its sales by a low single-digit percentage. At €5.40 billion, sales were 2 percent higher year over year. This was due to higher volumes. We projected that the EBITDA margin would be somewhat below the 2015 level. This did not prove to be the case. After adjustment for special income, EBITDA was substantially higher year over year. In 2016, we again retained advance payments and received damages due to the termination of long-term polysilicon supply contracts, but the amounts involved were substantially below the prior-year level. As expected, the business trend was positive at our three chemical divisions – WACKER SILICONES, WACKER POLYMERS and WACKER BIOSOLUTIONS – with volume growth spurring business there. On the whole, all three divisions increased their sales. EBITDA was substantially above the year-earlier figure. At WACKER POLYSILICON, solar-silicon prices fluctuated during the year. Even though prices were markedly lower, WACKER POLYSILICON grew its sales through increased volumes. At Siltronic, sales were slightly higher than the year before. Volumes rose marginally year over year. Volume gains and favorable exchange-rate effects were countered by low market prices. On balance, Siltronic’s EBITDA was higher year over year. Raw-material costs, energy costs and exchange rates trended in line with our expectations.

Comparing Actual with Forecast Performance

Projections for EBITDA Specified after First Quarter

With the publication of the Q1 Interim Report in April 2016, WACKER specified its projections for EBITDA. Instead of a slight increase when adjusted for special income, the gain was now expected to be between 5 and 10 percent year over year (2015: €911.2 million without special income). At €1.08 billion, adjusted EBITDA was 18.6 percent higher than the year before. Net financial debt, previously expected to be at the prior-year level, was forecast to be slightly below that level (2015: €1.07 billion). All other performance indicators remained unchanged. In the Q2 Interim Report for 2016, we forecast that EBITDA would reach the upper end of our projected range of 5 to 10 percent.

Investment spending developed as we had stated at the Annual Press Conference in March 2016 and amounted to €427.6 million.

Net financial debt of €992.5 million at year-end was slightly below the prior-year level.

As anticipated at the start of the year, the workforce increased. As of the reporting date, WACKER had 17,205 employees, 233 more than the year before.

The Executive and Supervisory Boards will propose a dividend of €2.00 per share for 2016 (dividend for 2015: €2.00) at this year’s Annual Shareholders’ Meeting.

Deviations from Projected Expenses

Personnel costs were slightly higher year over year, both in absolute terms and as a percentage of sales. This was due to the increase in the workforce, which was in part attributable to commissioning of the new production plant in Charleston, Tennessee (USA). We expect the ratio of personnel costs to sales to decline slightly in the medium term due to productivity gains.

Compared with the previous year, raw-material costs declined marginally, both in absolute terms and as a percentage of sales. A more favorable product mix and our efficiency programs concerning the use of raw materials were positive factors in this trend. Raw-material prices were lower on average over the year, which also had a positive influence on our raw-material costs. We expect raw-material prices to rise in the medium term, which will lift the ratio of raw-material costs to sales.

As we had expected, energy costs declined year over year due to more favorable procurement conditions and a lower regulatory cost burden.

Both in absolute terms and as a proportion of sales, depreciation was substantially higher year over year due to the start of depreciation of the polysilicon production facilities at our new Charleston plant. We expect depreciation to decline slightly in 2017 and to return to the levels of 2015 in the medium term.

Expenses by Cost Type