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Press release
Investor Relations
September 3, 2013

Evonik confirms growth strategy and presents long-term financial targets

Approx. €18 billion sales and more than € 3 billion adjusted EBITDA by 2018 

Five months after its successful listing, Evonik Industries today confirms its growth strategy and underlines it with long-term financial objectives at its first Capital Markets Day: Strong underlying growth, efficiency improvements and margin accretive returns from growth investments will allow Evonik to target sales of approximately €18 billion and an adjusted EBITDA of more than €3 billion by 2018.

Profitable growth, efficiency improvements and values 

Evonik intends to achieve these goals on the back of its corporate strategy focused on growth, efficiency and values. The strategy is based on leading market positions and favorable megatrends that deliver profitable growth across all segments. One of the company’s strength is its balanced and diversified portfolio of business activities, end-markets and regions. Strong barriers to entry are formed by working closely with key customers and constantly refining integrated technology platforms.

Profitable future growth will be driven by an ambitious capex program of over €6 billion between 2012 and 2016 out of which roughly €4 billion are earmarked for growth investments, mostly in emerging markets. In executing the capex program, Evonik has the flexibility to adjust to changing market conditions.

Evonik is constantly improving efficiency and stepping up cost discipline. This is exemplified by the On Track 2.0 efficiency enhancement program, which is making good progress. Today, just 18 months after the launch of this program, the company has already materialized nearly €200 million of the €500 million total annual savings that are projected by the end of 2016.

Evonik also puts a high priority on values such as a Group-wide performance culture and a mindset for growth.

Strong balance sheet and strict financial policy 

Evonik’s ambitious growth strategy is enabled by a strict financial policy and a strong balance sheet. Of great importance is maintaining a solid investment grade rating.

Over the last five years, Evonik has significantly deleveraged. The Real Estate transaction will lead to further considerable deleveraging effects. This will allow the company to refinance upcoming maturities at economically favorable conditions and to further fund its pension obligations. A 25 percent stake in the Real Estate business will be contributed to the Contractual Trust Arrangement.

With its strict financial policy and corporate strategy focused on growth, efficiency and values, Evonik is well positioned to achieve its ambitious financial targets by 2018.


Presentations made at the Capital Markets Day are available on Evonik’s website at www.evonik.com/capital-markets-day

About Evonik

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 2012 more than 33,000 employees generated sales of around €13.6 billion and an operating profit (adjusted EBITDA) of about €2.6 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.