Evonik Industries AG · XETR:EVK

Evonik Industries — Investor Presentation (March 2017)

84 slides from Evonik Industries's investor presentation, March 2017

  1. Slide 1: Evonik Power to create. Company presentation

    Evonik Power to create. Company presentation March 2017 1

  2. Slide 2: Table of contents

    Table of contents 1. Evonik at a glance 2. Strategic summary FY 2016 3. Financials Q4 / FY 2016 4. Appendix 2

  3. Slide 3: Leading in Specialty Chemicals

    Leading in Specialty Chemicals Market leader Customer proximity Value proposition Innovation power Growth profile Strong customer intimacy Most products with Average Leading market and tailor-made solutions small volume ~500 volume growth positions in with but big impact R&D projects from 2010 until

  4. Slide 4: Three segments with differentiated management

    Three segments with differentiated management Sales Adj. EBITDA Margin ROCE €12,732 m €2,165 m 17.0% 14.0% Growth Efficiency Nutrition Resource Performance & Care Efficiency Materials Sales Adj. EBITDA / Margin Sales Adj. EBITDA / Margin Sales Adj. EBITDA / Margin €4,316 m €1,006 m / 23.3% €4,473 m

  5. Slide 5: Growth strategy based on three strong pillars

    Growth strategy based on three strong pillars Investments Innovation M&A Expansion of global Market- and customer-oriented Sharpening of specialty production footprint R&D approach chemicals portfolio Strengthen leading market Product and process innovation Additional route for growth and positions

  6. Slide 6: Innovation excellence: Evonik growth fields

    Innovation excellence: Evonik growth fields Leveraging our core competencies into highly attractive markets Megatrends Health & Nutrition Resource Efficiency Globalization Evonik Growth Fields Sustainable Nutrition Advanced Food Ingredients Healthcare Solutions Additional contribution Cosmetic Solut

  7. Slide 7: Evonik's sustainability performance publicly recognized

    Evonik’s sustainability performance publicly recognized Our sustainability approach 2016: Included in DJSI World and Europe  Evonik well positioned in various ratings & rankings, e.g.  Sustainability is a core element in our corporate claim  Investor CDP (A-; MDAX index/country leader) “Power to

  8. Slide 8: RAG-Stiftung as long-term shareholder with focus on attractive returns

    “RAG-Stiftung” as long-term shareholder with focus on attractive returns Ownership structure RAG-Stiftung  A foundation with the obligation to finance the perpetual liabilities arising from the cessation of hard-coal mining in Germany  From 2019 onwards, annual cash out of ~ €220 m expected Free f

  9. Slide 9: Reliable and attractive dividend policy

    Reliable and attractive dividend policy Payout ratio 48% 58%  Sustainable dividend growth over the last years: 8% CAGR between 2008 and 2016  Dividend for 2016 on attractive 2015 level Dividend (in €) despite lower adjusted net income 1.15 1.15 +8% CAGR  Attractive dividend yield ~ 4%  Reliable

  10. Slide 10: Table of contents

    Table of contents 1. Evonik at a glance 2. Strategic summary FY 2016 3. Financials Q4 / FY 2016 4. Appendix 10

  11. Slide 11: Executing on strategy and delivering on financial targets

    Executing on strategy and delivering on financial targets  Acquisition of Air Products Performance Materials to strengthen our leading position in the Stringent high-margin specialty & coating additives market M&A execution  Planned acquisition of Huber Silica business, a strongly growing, profita

  12. Slide 12: Stringent M&A execution

    Stringent M&A execution Building a best-in-class Specialty Chemicals portfolio  Strengthening growth segments Nutrition & Care and Resource Efficiency Growth: GDP+ Strategy …  Targeting markets with high margins and attractive growth rates Margins: >20%  Acquisition of Air Products Performance Ma

  13. Slide 13: Air Products Performance Materials acquisition successfully closed

    Air Products Performance Materials acquisition successfully closed Well prepared for a quick and smooth integration Strong finish  Sales of $1,056 m and EBITDA of $259 m in calendar year 2016 1 of a successful  Coating additives with good volume and earnings development year 2016  Strong volume d

  14. Slide 14: Consistent execution of differentiated segment strategy

    Consistent execution of differentiated segment strategy Growth Efficiency Nutrition Resource Performance & Care Efficiency Materials Investments Innovation M&A  Enhancing competitive position through  Selective investments to  Strategic portfolio  Acquisition of APD PM  measures to compensate f

  15. Slide 15: Delivering on financial targets

    Delivering on financial targets Actual FY 2016 Initial guidance Adj. EBITDA €2,165 m  “between €2.0 and €2.2 bn” ROCE 14.0%  “above cost of capital” (10.5%) Capex € 960 m  “around 2015 level” (€0.9 bn) Free Cash Flow €810 m  “clearly positive” 15

  16. Slide 16: Table of contents

    Table of contents 1. Evonik at a glance 2. Strategic summary FY 2016 3. Financials Q4 / FY 2016 4. Appendix 16

  17. Slide 17: Good operating performance: Highlights FY 2016

    Good operating performance Highlights FY 2016 Volume growth Adj. EBITDA Free cash flow Dividend proposal +3 % €2,165 m €810 m 1.15 € (yoy) (vs. €653 m) (vs. €208 m in H1) (vs. €208 m in H1) Good volume growth across Earnings growth in 17 out of Strong cash generation – Reliable dividend policy all t

  18. Slide 18: Financial highlights Q4 2016

    Financial highlights Q4 2016 Strong volume growth and sequentially improving price trend Sales 0% Q4 16 vs. Q4 15 Adj. EBITDA (in € m) -13% (in € m) 3,198 3,205 / margin (in %) 501 437 Volume Price +5%   -6%  FX Other in % 15.7 13.6 Q4 15 Q4 16 +1%  +/-0%  Q4 15 Q4 16 +€274 m -11% Adj. EPS Net

  19. Slide 19: Strong operating cash flow and improved net working capital management

    Strong operating cash flow and improved net working capital management supporting free cash flow in FY 2016 Operating Cash Flow Investing Cash Flow Free Cash Flow (cont. op. in € m) (cont. op. in € m)1 (cont. op. in € m)2 (before dividends and divestments) 1,052 1,968 810 1,758 1,035 2014 2015 -60 2

  20. Slide 20: Nutrition & Care

    Nutrition & Care Health Care and Comfort & Insulation with strong finish of a successful year Sales (in € m) Adj. EBITDA (in € m) / margin (in %) -10% -34% 1,208 1,111 1,093 319 293 1,047 1,066 264 239 209 26.4 28.0 23.8 22.4 19.1 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16  Lower p

  21. Slide 21: Resource Efficiency

    Resource Efficiency Earnings growth and margin expansion for 3rd year in a row Sales (in € m) Adj. EBITDA (in € m) / margin (in %) +8% +4% 1,120 1,156 1,117 1,081 256 270 262 1,001 182 189 18.2 22.9 23.4 23.5 17.5 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16  Continuing good demand i

  22. Slide 22: Performance Materials

    Performance Materials Significant year-on-year earnings improvement Sales (in € m) Adj. EBITDA (in € m) / margin (in %) +7% +58% 829 797 846 105 104 98 789 772 62 64 7.9 8.3 12.7 13.0 11.6 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16  Good volumes and further improving spreads compen

  23. Slide 23: Targeting earnings growth for FY 2017

    Targeting earnings growth for FY 2017 Outlook for 2017 Outlook 2017 Adj. EBITDA €2.4 bn Higher sales (2016: €12.7 bn) Outlook range Adj. EBITDA between €2.2 bn and €2.4 bn €2.2 bn (2016: €2.165 bn) 2017E 23

  24. Slide 24: Progress in 2016 as basis for further profitable growth ahead

    Progress in 2016 as basis for further profitable growth ahead 2016: 2017: Executing on strategy and Set for profitable growth delivering on financial targets  Outlook achieved – financial targets accomplished  Successful integration of Air Products specialty additives business and synergy realizat

  25. Slide 25: Segment outlook FY 2017

    Segment outlook FY 2017 (including Air Products specialty additives business; Huber Silica business not included in outlook) Nutrition & Care Resource Efficiency Performance Materials  EBITDA lower than in previous year  Considerably higher EBITDA  Considerably higher EBITDA  Positive earnings c

  26. Slide 26: Additional indications for 2017

    Additional indications for 2017  Air Products specialty Adj. EBITDA of around €250 m including first synergies of €10-20 m; Sales and adj. EBITDA will be allocated additives business roughly equally between N&C and RE  ROCE Above cost of capital (10.0% before taxes), but perceptibly lower than in

  27. Slide 27: © evonik

    © evonik

  28. Slide 28: Appendix

    Appendix 1. Acquisition of Air Products specialty additives business 2. Acquisition of Huber Silica 3. Segment overview 4. Financials 5. Investor Relations contact 28

  29. Slide 29: Acquisition of Air Products (APD) Performance Materials activities

    Acquisition of Air Products (APD) Performance Materials activities Creating a global leader in Specialty & Coating Additives Impacted Evonik businesses Creating a global leader APD Performance Materials in Specialty & Coating Additives Comfort & Insulation Polyurethane Personal Care Additives Househ

  30. Slide 30: Excellent complementary fit of Evonik and Air Products specialty additives businesses

    Excellent complementary fit of Evonik and Air Products specialty additives businesses Evonik Target industries APD Performance Materials High value additives  PU foam stabilizers  PU foam catalysts for PU foam  Amine-based crosslinkers  Isophorone-based crosslinkers Additives/Ingredients  Epoxy

  31. Slide 31: Excellent strategic and operational fit leading to significant synergies

    Excellent strategic and operational fit leading to significant synergies  Excellent strategic fit  Complementary product portfolio  Strong supply chains and manufacturing base Cost synergies Revenue synergies Broader Leveraging product and Synergies Overhead Production Procurement each other’s ap

  32. Slide 32: Synergy potential and tax benefits leading to an attractive price

    Synergy potential and tax benefits leading to an attractive price Enterprise Value (in $ m) Adjusted EBITDA2 (in $ m) EV / EBITDA 2016E ~3,800 9.9x ~330 incl. synergies and tax benefits ~520 ~80 EV / EBITDA 2016E ~3,280 15.2x 250 excl. synergies and tax benefits EPS accretive Incl. tax benefits NPV

  33. Slide 33: Appendix

    Appendix 1. Acquisition of Air Products specialty additives business 2. Acquisition of Huber Silica 3. Segment overview 4. Financials 5. Investor Relations contact 33

  34. Slide 34: Huber Silica

    Huber Silica A profitable and resilient player in Silica J.M. Huber Corporation  Huber Silica is part of US-based company J.M. Huber Corporation  Family-owned, founded in 1883  Headquarter in Edison, New Jersey Huber Silica business EBITDA 2016E: Sales 2016E:  Technology- and solution-driven bus

  35. Slide 35: Acquisition of Huber Silica

    Acquisition of Huber Silica Access to new highly attractive silica applications for Evonik Evonik‘s focus areas in Silica Huber’s focus areas in Silica Complementary Tire applications Dental Coatings  Attractive growth rates: Life Science Specialties Industrial 4-6% Specialties Combined sales1: > €

  36. Slide 36: Key applications

    Excellent fit due to complementary applications and portfolio strengths Evonik Precipitated silica Huber Silica  Established industries Dental with high quality standards and global key accounts  “Green tires” with stronger Key applications Tire growth, Dental with higher resilience  Combining Ev

  37. Slide 37: Diversified exposure with attractive growth rates

    Diversified exposure with attractive growth rates Resource Efficiency and Convenience as major growth drivers  Abrasive silica for cleaning and whitening Dental 4% p.a.  Thickening agent for toothpaste  Reduced rolling resistance of “Green Tires” Tire 5-7% p.a.  Increased tensile strength and ha

  38. Slide 38: Optimizing the regional production setup

    Optimizing the regional production setup Dedicated plants for specific silica types in each major region Asset optimization: Situation today: North America Europe  Plants producing different silica types for several applications Asia New setup after integration:  Asset optimization towards one ded

  39. Slide 39: Partial backward integration into sodium silicate

    Evonik will improve its position in precipitated silica through partial backward integration Partial backward integration into sodium silicate (water glass)  Currently Evonik buys required Silicon dioxide Customer Sodium Silicate Precipitated silica sodium silicate externally (Sand) industries  Ac

  40. Slide 40: Significant synergies driven by excellent strategic and operational fit

    Significant synergies driven by excellent strategic and operational fit  Excellent strategic fit  Complementary product portfolio  manufacturing base Strong supply chains and S Production, Logistic ~10 Y N  Total synergies: ~ $20 m E R Procurement, Raw materials ~5 G  All measures expected I to

  41. Slide 41: Synergies and position as strategic buyer leading to attractive valuation

    Synergies and position as strategic buyer leading to attractive valuation Enterprise Value (in $ m) EV / EBITDA 2016E EBITDA incl. synergies (in $ m) ~7 x 630 incl. synergies & tax benefits 80 80 20 EV / EBITDA 2016E 60 550 10.5 x excl. synergies & tax benefits EV excl. NPV of EV incl. EBITDA Sustai

  42. Slide 42: Target market example: dental silica

    Target market example: dental silica: Silica as key component for improved oral hygiene and teeth retention Dental usage of silica Silica as… … key component with uniquely modified particles to achieve:  Abrasive dirt and plaque abrasion without enamel damage  Thickener rheology modification for p

  43. Slide 43: Key takeaways

    Key takeaways  Strengthening of Evonik’s growth segment Resource Efficiency  Excellent complementary fit with Evonik’s existing silica business  High-growth and resilient business with attractive margins  Optimizing global presence and combined production setup  Attractive valuation  Further b

  44. Slide 44: Appendix

    Appendix 1. Acquisition of Air Products specialty additives business 2. Acquisition of Huber Silica 3. Segment overview 4. Financials 5. Investor Relations contact 44

  45. Slide 45: Evonik Group: Business Lines grouped in segments

    Evonik Group 22 Business Lines grouped in 3 segments Resource Performance Nutrition & Care Efficiency Materials Sales Adj. EBITDA / Margin Sales Adj. EBITDA / Margin Sales Adj. EBITDA / Margin €4,316 m €1,006 m / 23.3% €4,473 m €977 m / 21.8% €3,145 m €371 m / 11.4% Animal Nutrition Silica Performan

  46. Slide 46: Nutrition & Care: Fulfilling human needs in a globalizing world

    Nutrition & Care Fulfilling human needs in a globalizing world Key characteristics Adj. EBITDA (€ m) and margin (%) End market split  High degree of customer intimacy and market know-how 27.0 25.8 25.0 22.1 20.8 29.1 23.3  Enabling our customers to deliver differentiating solutions in their market

  47. Slide 47: Nutrition & Care Business Line overview (1/2)

    Nutrition & Care Business Line overview (1/2) Animal Nutrition Baby Care Personal Care Household Care  Methionine  Superabsorbents  Actives  Fabric conditioners Key  Lysine, Threonine,  Emulsifiers  Specialty surfactants products Tryptophan  Conditioners  Feed additives and services  Baby

  48. Slide 48: Nutrition & Care Business Line overview (2/2)

    Nutrition & Care Business Line overview (2/2) Health Care Comfort & Insulation Interface & Performance  Pharmaceutical coatings  Foam stabilizers  Release coatings Key  Active pharma ingredients  Catalysts  Super spreading additives products  Pharma grade amino acids  Release agents  Drug d

  49. Slide 49: Natural marine algal oil as sustainable alternative for omega-3

    Business Line Animal Nutrition Natural marine algal oil is a sustainable alternative solution for omega-3 fatty acids used in aquacultures 2.6 kg “fish-in-fish-out” ratio 1 kg Conventional aquaculture Natural marine Salmon Zooplankton Fish Fishing vessel Fish oil algae aquaculture DSM and Evonik inn

  50. Slide 50: Algal oil as high-quality source of omega-3

    Business Line Animal Nutrition Algal oil as a high-quality source of omega-3 for the use in animal nutrition has many advantages Advantages versus other omega-3 sources EPA+DHA 1 kg of our EPA and DHA algal oil Source can replace 60 kg wild catch fish 3 Liquid product Natural algae (not genetically

  51. Slide 51: DSM and Evonik establish joint venture for omega-3 from marine algae

    Business Line Animal Nutrition DSM and Evonik establish joint venture for omega-3 fatty acids from natural marine algae for animal nutrition  DSM and Evonik to found a 50:50 joint venture to be named VeramarisTM, headquartered in The Netherlands  Joint venture for high value omega-3 fatty acid pro

  52. Slide 52: Key components for sustainable aquacultures

    Business Line Animal Nutrition Evonik offers key components for the development of sustainable aquacultures Start of evolution towards sustainable salmon diet Target: “vegetarian” diet without fish meal and -oil Traditional diet More sustainable diet Further reduction of fish input enabled by amino

  53. Slide 53: Acquisition of Dr. Straetmans: sustainable preservation

    Business Line Personal Care Acquisition of Dr. Straetmans Sustainable preservation with state of the art multifunctionals Preservatives Market shift to high-growth non-traditional preservatives  Preservatives are an essential part of any cosmetics ~€500M CAGR ’16-’21 formulation preventing product

  54. Slide 54: Acquisition of Dr. Straetmans: wide technology player

    Business Line Personal Care Acquisition of Dr. Straetmans Helping Evonik Personal Care to become a wide technology player Evonik Personal Care Base Products Specialties Fragrances (Secondary Functional Active Surfactants) 1 2 Ingredients Ingredients 1 Chassis  Perf. Additives 2 Tip-in Ingredients T

  55. Slide 55: Resource Efficiency: Innovative products for resource-efficient solutions

    Resource Efficiency Innovative products for resource-efficient solutions Key characteristics Adj. EBITDA (€ m) and margin (%) End market split  Focus on performance-impacting and value-driving components 18.4 19.9 21.4 21.3 20.7 20.9 21.8  Minor share of cost in most end products 977 Automotive, 

  56. Slide 56: Resource Efficiency Business Line overview (1/3)

    Resource Efficiency Business Line overview (1/3) Silica Oil Additives Crosslinkers  Precipitated silica  Lubricant additives (viscosity modifiers)  Crosslinkers for composites, elastomers Key  Fumed silica  Fuel additives and non-solvent coatings products  Special oxides  Silicone rubber  Au

  57. Slide 57: Resource Efficiency Business Line overview (2/3)

    Resource Efficiency Business Line overview (2/3) Active Oxygens High Performance Polymers Coating & Adhesive Resins  Hydrogen peroxide  High perf. polyamide (PA12)  Functional resins Key  Polyetheretherketone (PEEK)  Adhesive hot melts products  Membranes and Polyimide fibres  Heat sealants 

  58. Slide 58: Resource Efficiency Business Line overview (3/3)

    Resource Efficiency Business Line overview (3/3) Silanes Coating Additives Catalysts  Chlorosilanes  Additives for eco-friendly and highly solid  Activated base metal catalysts Key  Organofunctional silanes industrial coatings  Precious metal catalysts products  Rubber silanes  Catalysts for

  59. Slide 59: Performance Materials: Integrated production platforms

    Performance Materials Integrated production platforms for efficient production of rubber and plastic intermediates Key characteristics Adj. EBITDA (€ m) and margin (%) End market split  Strong integrated production platforms  Leading cost positions 15.8 18.8 16.9 10.6 8.5 9.0 11.4  Favorable raw

  60. Slide 60: Performance Materials Business Line overview (1/2)

    Performance Materials Business Line overview (1/2) Performance Intermediates Methacrylates Acrylic Products  Butadiene  Plasticizers (INA &  Methylmethacrylate (MMA) &  Acrylic sheets and semi-finished Key  MTBE DINP) application monomers products (Plexiglas®/ Acrylite®) products  Butene-1  M

  61. Slide 61: Performance Materials Business Line overview (2/2)

    Performance Materials Business Line overview (2/2) Agrochemicals & Polymer Additives Functional Solutions CyPlus Technologies  Triacetonamine  Alkoxides  Sodium cyanide Key  Crosslinkers (e.g. sodium methylate)  Potassium cyanide products  Precursors for crop protection  Polymer additives  A

  62. Slide 62: Performance Intermediates (C4 chain)

    Performance Intermediates (C4 chain) Fully integrated production platform in Europe Capacity overview Key success factors  Leading, cost efficient technology End markets Rubber platform with more than 30 years Fuel additive of experience Evonik Butadiene Polyethylene product 320 kt MTBE 675 kt co-m

  63. Slide 63: Appendix

    Appendix 1. Acquisition of Air Products specialty additives business 2. Acquisition of Huber Silica 3. Segment overview 4. Financials 5. Investor Relations contact 63

  64. Slide 64: Segment performance FY 2016

    Resource Efficiency and Performance Materials with strong earnings growth Segment performance FY 2016 Nutrition & Care Resource Efficiency Performance Materials Adj. +9% +20% -30% EBITDA (in € m) 1,435 896 977 371 309 1,006 Margin (in %) 29.1 23.3 20.9 21.8 9.0 11.4 2015 2016 2015 2016 2015 2016 Sal

  65. Slide 65: Capex with significant decrease since 2013

    Investments Capex with significant decrease since 2013 – focus on growth segments Capex spending (in € m)  Capex has considerably declined since 2013  Clear focus on the two growth segments  Sustainable capex level going forward: ~€900 m  Sizable investment projects will result in slightly eleva

  66. Slide 66: Selective, smaller investment projects announced for 2017/18

    Investments Selective, smaller projects announced for 2017/18 Major projects successfully completed … … and selective, smaller projects with start-up planned for 2017/18 C4 expansion Polyimide membrane exp. Germany, Belgium Austria Rationale: feedstock diversification Start-up: 2017 Volume: <50 m Oi

  67. Slide 67: Cost improvement integral part of Evonik's DNA

    Efficiency Cost improvement integral part of Evonik’s DNA 2009 2010 2011 2012 2013 2014 2015 2016 Measures with savings €500 m  €500 Operational potential >€500 m Excellence already in m by end of 2016 On Track On Track 2.0 implementation Measures with savings Administration potential >€100 m Excel

  68. Slide 68: Maintaining a solid investment grade rating

    Financial policy Maintaining a solid investment grade rating A- A3 stable BBB+ (stable) Baa1 /stable BBB+ BBB+ /stable Rating affirmed at BBB+ stable on May 6, 2016 shortly after Air Baa1 stable Products specialty additives business acquisition announcement Investment BBB grade  Will enhance Evonik

  69. Slide 69: Debt structure: Balanced maturity profile

    Debt structure Balanced maturity profile (in € m as of 31 December 2016)  Three-tranche bonds with a total value of €1.9 billion successfully issued in 1,600 September, maturing in 2021, 2024 and 1,400 2028 with an average coupon of 0.35% 1,200  New bond issuance reduces the 1,000 average interest

  70. Slide 70: Pensions: Pension funding overview

    Pensions Pension funding overview as of Dec 31, 2016  Pensions very long-term, patient debt (>16 years) with no funding Unfunded Pension fund / obligations in Germany (~ pension reinsured support 28% provision on 33% fund  DBO level in 2016 of €11.6 bn; balance sheet) Increase of €1.1 bn vs. 2015

  71. Slide 71: Pensions: Breakdown of P&L and cash flow effects

    Pensions Breakdown of P&L and cash flow effects in € m P&L item / KPI 2015 2016 Annual report ‘16 Current service costs Adj. EBITDA -191 -180 p. 161 Interest costs Net interest expense -281 -297 p. 161 P&L Exp. return on plan assets Net interest expense +185 +207 p. 162 / 163 Other Adj. EBITDA -40 -

  72. Slide 72: Pensions: Sensitivity to discount rate changes

    Pensions Sensitivity to discount rate changes Sensitivity analysis1: Increase (decrease) in discount rate by 100 bp in year x Impact in year x Impact in year x+1  Personnel costs: no impact  Personnel costs: decrease (increase) due to lower (higher) service costs  Finance costs: no impact  Finan

  73. Slide 73: Pension accounting: Reconciliation of pension provision

    Pension accounting Reconciliation of pension provision (as of Dec. 2016 YTD) €3.85 bn €90 m €44 m €585 m €180 m €421 m €3.35 bn Pension provision Service costs1 Other2 Net interest costs Pension payments Pension Pension provision 31 Dec, 2015 (DB Plans) remeasurements 31 Dec, 2016 Operating cash Bal

  74. Slide 74: Net debt development

    Net debt development (in € m) Net financial debt Pension provisions Total leverage1  Majority of debt consists of long-dated pension Net obligations; average life of DBO exceeds 15 2,760 3,553 2,251 2,741 debt years  Pension provisions are partly balanced by corresponding deferred tax assets of ~€

  75. Slide 75: Financial track record

    Financial track record Sales (in € m) Adj. EBITDA (in € m) / margin1 Carbon Black/Real Estate 16.1% 18.3% 19.0% 18.5% 15.7% 14.6% 18.2% 17.0% 13,300 14,540 13,365 12,708 12,917 13,507 12,732 2,365 2,768 2,467 2,465 10,518 1,989 1,882 2,165 1,607 11,701 13,316 2,439 9,267 2,022 1,374 2009 2010 2011 2

  76. Slide 76: Segment overview by quarter

    Segment overview by quarter Sales (in € m) Q1/15 Q2/15 Q3/15 Q4/15 FY 2015 Q1/16 Q2/16 Q3/16 Q4/16 FY 2016 Nutrition & Care 1,229 1,248 1,240 1,208 4,924 1,047 1,111 1,066 1,093 4,316 Resource Efficiency 1,124 1,110 1,044 1,001 4,279 1,120 1,156 1,117 1,081 4,473 Perf. Materials 851 938 858 789 3.43

  77. Slide 77: Balanced regional and end market split

    Balanced regional and end market split Sales by region End market split Agriculture Renewable energies Paper & printing Other Electrical & electronics Food & animal feed Germany Metal & oil products Asia-Pacific Paints & coatings1 Pharmaceuticals Consumer & Other industries personal care Central & S

  78. Slide 78: Raw material split

    Raw material split Total procurement volume 2016 (in € m) Oil price link of raw material spend1 (examples) Bio Logistic & Packaging  Dextroxe Energy  Fatty alcohols (incl. natural gas)  Tallow fatty acid Fossil  Fatty acids  Crack C4  tallow  Propylene ~€7.6 bn ~€4.5 bn  Acrylic acid Raw mat

  79. Slide 79: Management compensation

    Management compensation Fixed salary  To be paid in cash for each financial year on a monthly basis ~1/3  To be paid out in cash annually  Factor of between 0.8 and 1.2 to take into account the achievement of further individual targets Bonus  Pay-out calculated on the basis of the achievement of

  80. Slide 80: Appendix

    Appendix 1. Acquisition of Air Products specialty additives business 2. Acquisition of Huber Silica 3. Segment overview 4. Financials 5. Investor Relations contact 80

  81. Slide 81: Upcoming IR events

    Upcoming IR events Conferences & Roadshows Next reporting dates 3 March Roadshow, London 5 May 2017 Q1 2017 reporting 9 March Roadshow, Frankfurt 23 May 2017 Annual General Meeting 2017 23 March Roadshow, Amsterdam 3 August 2017 Q2 2017 reporting 29 March Goldman Sachs Chemicals Conference, London 3

  82. Slide 82: Evonik Investor Relations team

    Evonik Investor Relations team Tim Lange Janine Kanotowsky Head of Investor Relations Team Assistant +49 201 177 3150 +49 201 177 3146 [email protected] [email protected] Daniel Györy Kai Kirchhoff Investor Relations Manager Investor Relations Manager +49 201 177 3147 +49 201 177 3145

  83. Slide 83: Disclaimer

    Disclaimer In so far as forecasts or expectations are expressed in this presentation 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 oper

  84. Slide 84: © evonik

    © evonik

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