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, ,650 As of Dec. 31 st, 2013
Page | 4 We gear to high-growth megatrends with well-balanced product portfolio Resource Efficiency Consumer, 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 Product Global ranking Consumer Specialties Fat chemistry, quaternary derivatives1 Amphoteric surfactants1 Ceramides, phytosphingosines1 Organically modified silicones1–2 Superabsorbents1–2 Health & Nutrition Exclusive synthesis2 Pharmaceutical polymers2 Amino acids and amino acid derivatives3 DL-methionine1 Product Global ranking Inorganic Materials Organosilanes, chlorosilanes1 Fumed silicas, fumed metal oxides, precipitated silicas, matting agents1 Precious metal powder catalysts1 Activated nickel catalysts2 Coatings & Additives Organically modified silicones2 Polyester resins1 Amorphous polyalphaolefins1 Isophorone chemistry1 Oil additives1 Thermoplastic and reactive methacrylate resins1–2 Product Global ranking PerformancePolymers Polyamide 121 Methacrylate monomers1–2 Methacrylate polymers (PMMA molding compounds and PMMA semi-finished products)1–2 PEEK3 AdvancedIntermediates Alcoholates1 Cyanuric chloride3 Hydrogen peroxide2 Butene-11 Isononanol2 DINP2
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-rays possible
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 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 SalesOver €1 billion EmployeesAbout 3,200 Locations17 Production sites10 As of Dec. 31 st, 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 New isophorone & isophorone diamine production facility* Investment of over €100 mio. to expand global production network New organics production facility Produces organic specialty surfactants for the personal care, household care and industrial specialties industry New production plant for H 2 O 2 * Investment of over €100 mio., annual capacity of ≈230,000 tons, based on new HPPO process *under construction
Page | 13 R&D center phase I Investment of €12 mio. State-of-the-art R&D facilities We innovate with global foresight and local competence 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 II Investment of €10 mio. R&D center phase III Investment 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 Employer Exploring opportunities. Growing together Opportunities FlexibilityTeam Spirit Creativity & Innovation Challenging tasksInternationality 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
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