Creativity for Infinite Possibilities

Evonik and Evonik in China

Mar. 2014

Page | 2

Who are we?

A leading specialty chemical company from Germany, as creative, powerful and courageous as the dream team we sponsor!

Page | 3

We are a global leader in specialty chemicals

Sales €12.9 billion

Adjusted EBITDA €2.0 billion

Profitability (adjusted EBITDA margin) 15.6%

Return on capital employed (ROCE) 14.5%

Employees as of Dec. 31, 2013  33,650

As of Dec. 31st, 2013

Page | 4

We gear to high-growth megatrends with well-balanced product portfolio

Resource EfficiencyConsumer, Health & Nutrition

Consumer Specialtie

Health & Nutrition

Specialty Materials

Performance Polymers

Inorganic Materials

Coatings & Additives

Advanced Intermediates

Evonik has aligned its worldwide business activities to the global societal and economic megatrends of health, nutrition, resource efficiency, and globalization.

Page | 5

We achieve around 80 percent of our sales from market leading positions

Source: Annual Report 2013 Evonik Industries

   

ProductGlobal

rankingConsumer Specialties  

Fat chemistry, quaternary derivatives 1

Amphoteric surfactants 1

Ceramides, phytosphingosines 1

Organically modified silicones 1–2

Superabsorbents 1–2

Health & Nutrition  

Exclusive synthesis 2

Pharmaceutical polymers 2

Amino acids and amino acid derivatives 3

DL-methionine 1

   

   

ProductGlobal

ranking

Inorganic Materials  

Organosilanes, chlorosilanes 1

Fumed silicas, fumed metal oxides, precipitated silicas, matting agents 1

Precious metal powder catalysts 1

Activated nickel catalysts 2

Coatings & Additives  

Organically modified silicones 2

Polyester resins 1

Amorphous polyalphaolefins 1

Isophorone chemistry 1

Oil additives 1

Thermoplastic and reactive methacrylate resins 1–2

   

   

ProductGlobal

ranking

Performance Polymers  

Polyamide 12 1

Methacrylate monomers 1–2

Methacrylate polymers (PMMA molding compounds and PMMA semi-finished products) 1–2

PEEK 3

Advanced Intermediates  

Alcoholates 1

Cyanuric chloride 3

Hydrogen peroxide 2

Butene-1 1

Isononanol 2

DINP 2

   

Page | 6

We help to make our modern lives more comfortable, healthier, and more sustainable every day

Evonik’s lightweight solutions help to reduce fuel consumption

Evonik protects highly polished surfaces

Evonik makes better X-rayspossible

Page | 7

We believe responsibility leads to success

Turning megatrends into business opportunities to contribute to sustainable development

Focusing strongly on employees

Using sustainable process excellence as a guiding principle of value creation

Being a firm part of the corporate strategy and giving it a new impetus

Page | 8

We set concrete environmental targets and strive to realize them

Reduce specific energy-related emissions of greenhouse gases by 20%

Reduce specific water consumption by 20%

Reduce specific volume of production waste by 20%

Goals for reductions in key parameters over a 10-year period (2004–2014)

In 2012, Evonik met the ambitious targets in the areas of greenhouse gases, water consumption and production waste for the period 2004-2014 two years earlier than expected.

Page | 9

We drive innovation with a global network

Global footprint

Major R&D centers

Innovation for attractive markets with high growth potential

Modern management, strong culture

Regional focus of R&D activities are Germany, USA and Asia

Key statistics

– R&D spend: €394 m. (~ 3% of sales in Fiscal Year 2013)

– Employees: ~ 2,600– Facilities: more than 35– Approx. 26,000 patents– Approx. 7,500 trademarks

Resources and philosophy

Page | 10

Evonik in the Greater China region

Page | 11

We are a committed partner for the Greater China region since 1930’s

Sales Over €1 billion

Employees About 3,200

Locations 17

Production sites 10

As of Dec. 31st, 2013

Page | 12

The integrated Methyl Methacrylate production facility Invested over €200 mio., started up successfully in end of 2009

We invest production locally to serve our customers

2007

2009

2012

2013

New isophorone & isophorone diamine production facility* Investment of over €100 mio. to expand global production network

New organics production facilityProduces organic specialty surfactants for the personal care, household care and industrial specialties industry

New production plant for H2O2* Investment of over €100 mio.,annual capacity of ≈230,000 tons, based on new HPPO process

*under construction

Page | 13

R&D center phase IInvestment of €12 mio. State-of-the-art R&D facilities

We innovate with global foresight and local competence

2004

2012

2013

Develop product applications,provide technology service for customers throughout China and Asia

Conduct basic research,participate and support global strategic R&D projects,provide technology services for customers in Asia

2007

R&D center phase IIInvestment of €10 mio.

R&D center phase IIIInvestment of €23 mio. LEED certified

Page | 14

We enter into new markets with long-term innovation initiatives

Advanced Project House Light & Electronics

First project house established outside of Germany

Located in the Industrial Technology Research Institute in Hsinchu, the "Silicon Valley of Taiwan”

Projects focus on lighting, displays, touch panel, photovoltaic, LEDs and functional coatings

New cornerstone for entering into new markets and globalization of R&D

Already filed a patent after 1 year operation

Page | 15

We are committed as a Top EmployerExploring opportunities. Growing together

Opportunities

Flexibility Team Spirit

Creativity & Innovation

Challenging tasks Internationality

Long-term growth

Page | 16

We live Corporate Responsibility in the region with global standards and local initiatives

Best-in-class processes

Contribution to the business

Focus on employees

Evonik applies best-in-class processes in large scale at the multi-user-site China

Evonik invests in vocational trainings – summer camp jointly held by Evonik and Shanghai Petrochemical Academy since 2008

Evonik sponsors color zebra crossing in school zones

Page | 17

Growth

Efficiency

Values

consistently extend our leading market positions in specialty chemicals

implement an ambitious investment program

create sustainable value for our employees, customers, and shareholders

continue to significantly simplify the structures and processes in our company

achieve more with reduced inputs of materials and resources

continuously improve our market positions with respect to technology, quality, and costs

attract and retain well-trained, well-motivated, and performance-oriented employees for Evonik

be a reliable and high-performance partner for our customers

live up to our social responsibility as a global player all over the world

We are speeding up the pace of development by using the triad of efficiency, values and growth

Page | 18