Evonik Industries Ag · XETR:EVK
Evonik Industries — Morgan Stanley Cannonball Run 2015
23 slides from Evonik Industries's conference presentation, Jun 25, 2015
Slide 1: Inside, to get it right
“Inside, to get it right” Business Line Silica Morgan Stanley Cannonball Run 2015 Andreas Fischer Head of BL Silica Essen, 25 June, 2015
Slide 2: Resource Efficiency Segment structure
Resource Efficiency Segment structure Resource Efficiency Sales: €4,040 m Adj. EBITDA / margin: €836 m / 20.7% Sales by Business Line Catalysts Silica Coating Additives Silanes Coating & Adhesive Resins Oil Additives High Performance Polymers Active Oxygens Crosslinkers Data as of Fiscal Year End 20
Slide 3: Silica: Tailored product properties for environmentally friendly solutions
Silica Tailored product properties for environmentally friendly and energy efficient solutions We help you save energy. We empower wind energy. High silica content leads to low rolling Silica improve properties of adhesives, giving resistance and excellent traction in tires greater stability to larg
Slide 4: Table of contents
Table of contents 1 Facts & figures 2 Key success factors 3 Targeted investment strategy 4 Summary June 25, 2015 | Morgan Stanley Cannonball Run | Silica Page 4
Slide 5: Business at a glance
Business at a glance Leading silica supplier with full coverage Top 20 Production sites with 282 global coverage R&D and Applied #1 Technology experts Supplier for fumed and precipitated 32 >100 Industries served by Products to solve silica industry experts customer challenges June 25, 2015 | Morgan
Slide 6: Product portfolio capabilities
Product portfolio capabilities From sand to a broad range of tailor-made silica solutions Particle design: Same weight of 25 g, Sand Sodium silicate Precipitated silica different volumes of silica products 25 g 25 g Silicon metal Silanes 1 Fumed silica 25 g Fumed metal Platform oxides BL Silica BL S
Slide 7: Technological capabilities
Technological capabilities Outstanding expertise in designing inorganic particles and surface properties • Unique product portfolio of larger volume products as well as customized solutions • Broad commercialized technology base • Long-standing in-house cooperation within Resource Efficiency segment
Slide 8: Market focus
Market focus Well-balanced end market split with exposure to attractive growth markets Sales split by end market (2014) and expected market growth (2014 – 2019)3 % p.a. Food, feed & beverages Automotive, transportation & machinery 4-6%2 Feed Global light vehicle tires 3%1 ~5% Low rolling >10%1 ~30%
Slide 9: Applications and functionalities
Applications and functionalities Broad application spectrum in diversified end markets Diese Markierung nach erfolgreicher Anwendung dieser Master löschen. Applications Functionality examples • Reduced rolling resistance of “Green Tires” Tire and MRG1 • Increased tensile strength and hardness of e.g
Slide 10: Table of contents
Table of contents 1 Facts & figures 2 Key success factors 3 Targeted investment strategy 4 Summary June 25, 2015 | Morgan Stanley Cannonball Run | Silica Page 10
Slide 11: Key success factors
Key success factors Tailor-made solutions based on deep understanding of customers’ needs Broad product & Strong Global industry portfolio customer intimacy production network • Precipitated silica and • Future winner concept • Production platforms in fumed metal oxides and industry teams all major
Slide 12: Spotlight food and feed
Spotlight food and feed Broad portfolio enables to act as advisor for the best customer solution Industry needs Silica as free flow aid in food and feed processing Customer specific formulations Evonik offering Fumed and precipitated silica products manufactured under food additive regulations
Slide 13: Spotlight tire industry
Spotlight tire industry Customer intimacy has to be re-earned day per day Industry needs Just-in-time deliveries and full supply security Consistent quality with growing requirements Easy-to-disperse products for fast processing Local supply with global quality also in emerging growth market
Slide 14: Global production network
Global production network Global production platform combined with regional customer proximity 20 silica plants globally Evonik precipitated silica plants Evonik fumed silica plants Evonik colloidal silica plants ( ) Planned • Global production network with presence in all major silica markets Chest
Slide 15: Table of contents
Table of contents 1 Facts & figures 2 Key success factors 3 Targeted investment strategy 4 Summary June 25, 2015 | Morgan Stanley Cannonball Run | Silica Page 15
Slide 16: Targeted investment strategy
Targeted investment strategy Flexible and stepwise approach for expansion of global silica platform Selective investment approach depending on the situation in the respective markets 1 2 3 Diluting fixed costs by Partnering with strong local Tapping strong growth markets stepwise expansion players t
Slide 17: Stepwise expansion of existing sites: Chester (USA)
1 Stepwise expansion of existing sites Example: Chester (USA) • Existing Evonik site since 1984 • Stepwise expansions tripled capacity until today • Broad production platform, ranging from larger volume rubber grades to high end matting agents Chester, Pa., September 9, 2014 Latest example: • Additi
Slide 18: New production facilities: Americana (Brazil)
New production facilities 2 Example: Americana (Brazil) • First production plant for highly dispersible (HD) silica in South America • Tapping Latin American growth markets by new production facility currently mainly served by imports • Attractive specialty segments in South America's food, feed, an
Slide 19: New production facilities: South East of the United States
New production facilities 2 Example: South East of the United States • New Site with focus on the rubber and especially the growing tire industry. • Located in the South East of the United States, in close proximity to major American tire production sites. • Basic engineering started, completion sch
Slide 20: Partnering with strong local players: Xuzhou (China)
Partnering with strong local players 3 Example: Xuzhou (China) • New site for fumed silica and ultrapure Main applications silicon tetrachloride in China • Attractive cost position via fence-to- fence partnership with leading silicon producer (CGL) • >20,000 mt total capacity to be built in Xuzhou •
Slide 21: Table of contents
Table of contents 1 Facts & figures 2 Key success factors 3 Targeted investment strategy 4 Summary June 25, 2015 | Morgan Stanley Cannonball Run | Silica Page 21
Slide 22: Summary
Summary Silica well-positioned to write the story of tomorrow • Leading silica producer with superior portfolio of larger volume products and specialties • Outstanding particle design competence as technical differentiator • Well-balanced end market split in attractive growth markets • High customer
Slide 23: June 25, 2015 | Morgan Stanley Cannonball Run | Silica
June 25, 2015 | Morgan Stanley Cannonball Run | Silica
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