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Press release
Investor Relations
October 2, 2014

Evonik is paving the way for further growth

  • New management and portfolio structure for more targeted management of the businesses
  • Disciplined implementation of investment program with capital expenditures of up to €5.5 billion between 2012 and 2016
  • Plans to participate actively in consolidation of the specialty chemicals sector

The specialty chemicals group Evonik Industries is positioning itself to accelerate growth. At today’s Capital Markets Day at the company’s site in Hanau (Germany) the top management outlines the Group’s new management and portfolio structure. The operating segments will have considerably greater entrepreneurial independence in the future, allowing more targeted management of their respective businesses. In particular, the Consumer, Health & Nutrition and Resource Efficiency segments should post above-average, profitable growth with innovation-driven solutions tailored to the specific needs of individual customers. Evonik also intends to strengthen its Specialty Materials segment, which is characterized principally by integrated technology platforms and efficient processes, by further raising its efficiency and effectiveness. Moreover, in the future investments and, where appropriate, alliances will concentrate on securing and extending its good market positions.

Evonik’s new structure will also ensure that it is well-positioned to play an active part in the dynamic consolidation of the chemicals industry. Evonik’s mid-term goals — sales of around €18 billion and adjusted EBITDA of over €3 billion by 2018 — are confirmed as aspiration level at the Capital Markets Day.

 

Expansion of leading market positions

Sustained value creation in the Evonik Group will be driven by internal and external growth as well as market- and application-oriented innovations. The investment program introduced in 2012 is progressing well. Up to €5.5 billion is earmarked for investment by 2016, including up to €3.5 billion for growth projects to expand market-leading positions. That is an adjustment of around 13 percent compared with the original plan to invest around €4 billion in growth. This demonstrates the flexible and disciplined implementation of the program: Projects that have not yet started are always reviewed for changes in the market situation. It is estimated that capital expenditures will be around €1.2 billion this year.

Evonik’s strong financial profile also provides the option of value-creating growth through acquisitions. In particular, Evonik intends to strengthen its Consumer, Health & Nutrition and Resource Efficiency segments. Their business models comprise custom-tailored, innovation-driven solutions, positioning them in less cyclical markets with high margins, growth rates and market entry barriers.

The Capital Markets Day also includes presentations on selected activities of the Resource Efficiency segment: the Silica, Oil Additives and Coatings Additives Business Lines. All presentations given at the Capital Markets Day are available from www.evonik.com/capital-markets-day. A live webcast of the presentations by the CEO and CFO will start at around 10.30 a. m.

Company information

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms.

 

Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around €12.7 billion and an operating profit (adjusted EBITDA) of about €2.0 billion.

Disclaimer

In so far as forecasts or expectations are expressed in this Investor Relations News or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.