corporate venture capital 2 - aurelia private equity › images › stories › vc-vortraege ›...
TRANSCRIPT
Jakob Wirbatz
September 2014
Corporate Venture Capital 2.0
Table of contents
1 Evonik at a glance
2 Evonik Venture Capital
3 Corporate Venture Capital
Page 2
Page 3
• Sales 2013 €12,9 billion
• adj. EBITDA 2013 €2,0 billion
• Sales from leading market positions ~ 80%
• Innovation driven by ~ 500 R&D projects
Evonik at a glance
One of the world leaders in specialty chemicals
Page 4
Sales €177 m Adj. EBITDA - €293 m
Corporate/ Other
Sales €916 m Adj. EBITDA €182 m Services
Sales: €12.874 bn Adj. EBITDA: €2,007 m Margin: 15.6% ROCE: 14.5%
Environment-friendly and energy-efficient system solutions.
Resource Efficiency
Sales €3,084 m Adj. EBITDA €656 m Margin 21.3%
Products for applications in the consumer goods, animal nutrition and healthcare sectors.
Consumer, Health & Nutrition
Sales €4,207 m Adj. EBITDA €910 m Margin 21.6%
Polymer materials and intermediates mainly for the rubber and plastics industries.
Specialty Materials
Sales €4,490 m Adj. EBITDA €552 m Margin 12.3%
All data as of fiscal year 2013
Balanced and diversified portfolio
Page 5
1 Based on Specialty Chemicals segments’ 2013 sales 2 Consolidated Group sales 2013, continued operations 3 Where not directly assigned to other end-consumer industries
High degree of stability due to well diversified portfolio across various end markets and regions
Other 3%
Asia-Pacific 18%
Central and South America 6%
North America 18% Other European Countries 31%
Germany 24%
Agriculture Renewable energies Paper and printing Paints and coatings3
Metal and oil products
Electrical and electronics
Pharmaceuticals
Other industries
Plastics and rubber3
Construction Automotive and
mechanical engineering
Food and animal feed
Consumer goods and personal care products
15−20% 10−15% 5−10% < 5%
Sales by region2 End market split1
Specialty Chemicals segments Overview
Data as of Fiscal Year End 2013
Segm
ents
Consumer, Health & Nutrition Sales: €4,207 m Adj. EBITDA: €910 m
Consumer Specialties Sales: €2,192 m
Health & Nutrition Sales: €2,015 m
Personal Care (20%)
Methionine (~60%)
Health Care (~20%)
CyPlus Technologies (~5%)
Bioproducts (~15%)
Household Care (15%)
Interface & Performance (~10%)
Baby Care (~45%)
Comfort & Insulation (10%)
Resource Efficiency Sales: €3,084 m Adj. EBITDA: €656 m
Inorganic Materials Sales: €1,436m
Coatings & Additives Sales: €1,648 m
Silica (~65%)
Crosslinkers (~30%)
Coating & Adhesive Resins (~30%)
Oil Additives (~30%)
Coating Additives (~10%)
Silanes (~25%)
Catalysts (~10%)
Specialty Materials Sales: €4,490 m Adj. EBITDA: €552 m
Performance Polymers Sales: €1,810 m
Advanced Intermediates Sales: €2,680 m
Acrylic Monomers (~35%)
Performance Intermediates (~70%)
Functional Solutions (~10%)
Agrochemicals & Polymer Additives (~10%)
Active Oxygens (~10%)
Acrylic Polymers (~40%)
High Performance Polymers (~25%)
Bus
ines
s U
nits
B
usin
ess
Line
s
Page 6
For additional growth we are exploring a set of new areas
Membranes&
Advanced Ceramics
Composites Personal
Care Food & Feed Pharma- &
Biotechnology Oilfield Chemicals
Electronics (coating,
film, powder)
Create new business in attractive markets for resource efficiency and electronics
Build a leading nutrition and care platform with unique exposure to growth trends
New Growth Areas for Evonik
Page 7
Table of contents
1 Evonik at a glance
2 Evonik Venture Capital
3 Corporate Venture Capital
Page 8
Page 9
• We make medium-term investments in start-up companies and venture capital funds throughout the world, with a total volume of up to €100 million.
• We generally maintain a minority share and typically invest up to €5 million per company.
• investments are driven by financial returns and strategic goals
• in innovative companies within key megatrends and new growth fields of Evonik
• typically in series A & B rounds of companies that have already entered the market or are about to do so
• typically in syndication with other venture capital investors
Evonik Venture Capital investment strategy
Page 10
• We invest in start-up companies with innovative technology and high growth potential in the field of specialty chemicals and advanced materials
• Consumer and Health & Nutrition • Rise of an affluent middle class in emerging markets • Aging population
• Resource Efficiency • Renewable energies • Environmentally friendly solutions
• Specialty Materials • Mobility and urbanization • Substitution of conventional materials
Evonik Venture Capital investment focus
Membranes Composites Personal
Care Food
& Feed Pharma- &
Biotechnology Oilfield
Chemicals Electronics
Evonik Venture Capital strategic investor advantage
• We are a strategic investor that actively collaborates with its portfolio companies leveraging the strengths of Evonik to drive growth at portfolio companies through strategic and commercial expertise:
• Technological expertise and infrastructure
• Know-how of manufacturing processes and production scale-ups
• Market experience and access
• Maintains a global distribution network
• Expertise in patent strategies and on issues of industrial property rights
Page 11
Algal Scientific www.algalscientific.com Algal Scientific manufactures and markets 1,3-β-glucan, an additive in animal feeds and as a nutritional supplement in pharmaceutical formulations. Biosynthetic Technologies www.biosynthetic.com BT manufactures “biosynthetic” oils having numerous uses in the lubricant, chemical, and cosmetics industries. FRX Polymers www.frxpolymers.com FRX Polymers manufactures and markets poly-phosphonates – fire-resistant plastics. Emerald Technology Ventures www.emerald-ventures.com Emerald Technology Ventures invests in the areas of energy, water and materials. High-Tech Gründerfonds www.high-tech-gruenderfonds.de
High-Tech Gründerfonds invests in early stage companies in life science, materials science, and information technology.
Pangaea Ventures
www.pangaeaventures.com Pangaea Ventures Fund III invests in early-stage cleantech companies.
Evonik Venture Capital portfolio companies
VC Fund Investments
Direct Investments
Page 12
Evonik Venture Capital investment team
Main Office – Hanau, Germany
Bernhard Mohr Managing Director [email protected]
Monika Braun Executive Assistant [email protected]
Petra Riva Executive Assistant [email protected]
Alex Baum Investment Manager [email protected]
Mark Redshaw Investment Manager [email protected]
Jakob Wirbatz Investment Manager [email protected]
Stephan Wolf Financial Analyst [email protected]
Page 13
Office – Essen, Germany Juergen Finke Investment Director [email protected]
Office – Parsippany, NJ, USA Lutz Stoeber Investment Manager [email protected]
www.evonik.com/venturing
Table of contents
1 Evonik at a glance
2 Evonik Venture Capital
3 Corporate Venture Capital
Page 14
Page 15
New wave of Corporate Venture Capital?
• Worldwide more than 1100 corporations with corporate venture programs, more than 475 of those having formed since the beginning of 2010
• Investments by corporate venturers grew steadily from € 730m in 2008 to € 1.22bn in 2012, representing 16% of total European venture and growth capital investment, over three times the percentage it represented in 2008
• VC deals in 2013: 4107, deals with CVC involvement: 693, percentage of deals with CVC involvement: 16.9%
• three distinct boom-and-bust cycles since the 1960s (mid-1960s, first half of the 1980s, 1990-2000)
Sources: Thelander/CVI2, CVC Compensation Report, 2014; Global Corporate Venturing, Corporate Venturing 301, 2014; PwC/NVCA, MoneyTree Report, 2013; BCG Corporate Venture Capital, 2012
Corporate Venture Capital Overview
Page 16
“Pressure for innovation”
Corporate Venture Capital A tool for innovation
“Innovation spells the difference between success and failure”
“Innovation has become the new currency of competition”
“Innovate or die”
“Growth through innovation”
“Growth through innovation”
CVC: early access to potentially disruptive technologies, new regions and business models
Page 17
Importance of Innovation
Future trend: smart phone
Nokia
Disruptive technology: digital camera
Eastman Kodak
New business model: music download
Apple
New regions: online shopping
Alibaba
Page 18
Financial and strategic objectives:
• Risk-adjusted financial returns
• External innovation to complement internal R&D
• Early access to disruptive technologies, new markets and business models
• “window on technology” and “window on new markets”
• Identify and establish collaborations and partnerships
• Capture and transfer knowledge to the corporation
• Enhance internal innovation within the parent company
• Establish cross-industry networks and relationships with independent VCs
• Identification of acquisition opportunities
Benefits of CVC Parent organization & business units
Page 19
Ability to leverage corporate assets is part of the value proposition that CVCs make and can add substantial value to an investment:
• industry-specific expertise and specialized knowledge:
• Technological expertise
• Manufacturing process and production scale-ups
• Market intelligence
• IP strategy and patent application
• Recruitment
• Global distribution network (access to markets or customers)
• Fundraising assistance
Benefits of CVC Portfolio company & co-investors
Page 20
• Corporates realize importance of innovation and understand that they cannot invent everything internally:
• Reallocation of resources from internal R&D towards external innovation
• Organization set up to embrace innovation and collaborate across functional boundaries
• Culture of “Open Innovation”
• Investment focus is widening:
• Looking past the boundaries of their own industries toward adjacent and downstream industries
• Move toward earlier-stage deals
Lessons learned I
Page 21
• Deep understanding of the objectives of the parent company and needs of the core business
• Close alignment with business and innovation strategy of the parent organization
• Building internal networks:
• Backing of corporate leadership (reporting channels: CEO, CFO, CIO) C
• Securing business unit support for investments
• Building cross-industry networks:
• Link to VC industry (deal flow, syndication)
• Co-invest with other CVCs
Lessons learned II
Page 22
• Speed of decision making:
• Set-up of CVC unit (personnel, investment committee)
• Investment process (due diligence, deal closing)
• Substantial capital allocation (USD 50m – 250m):
• Diversified portfolio
• “Dry powder” for follow-on investments
• Long-term commitment
Lessons learned III
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 operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release
Page 23
