Evonik Industries Ag · XETR:EVK
Evonik Industries — Debt Investor Presentation (September 2009)
38 slides from Evonik Industries's debt investor presentation, September 2009
Slide 1: Evonik. Power to create. Investor Update
Evonik. Power to create. Investor Update September 2009
Slide 2: Key credit highlights
Key credit highlights • Leading global Specialty Chemicals player Megatrends • Activities in Energy and Real Estate with low risk profiles Energy Efficiency • Excellent market positions and balanced product portfolio in Chemicals • Strong R&D pipeline in Chemicals with focused product development re
Slide 3: A resolute management team
A resolute management team Dr. Klaus Engel (53) Dr. Wolfgang Colberg (49) Ralf Blauth (58) Chairman of the Executive Board Chief Financial Officer Chief Human Resources Officer 25 Years of Experience 23 Years of Experience 38 Years of Experience 2007-2008: 2001-2009: 2006-2009: Board member of Evoni
Slide 4: Ownership structure
Ownership structure • RAG Stiftung (foundation) • public mandate from the German Government to further develop the group’s business with the ultimate target 74.99% 25.01% of an IPO of up to 75% • 25.01% acquired by CVC Funds in June 2008 Evonik Industries AG • Strong alignment of both shareholders •
Slide 5: Evonik operates in three Business Areas
Evonik operates in three Business Areas Sales €15.9 bn; EBITDA €2.2 bn; 40,767 employees (2008) Chemicals Energy Real Estate • A leader in specialty chemicals • Leading coal power plant • Residential portfolio developer & operator of.~60,000 units • Broad spectrum of products and applications • Sale
Slide 6: Evonik Chemicals – A leader in Specialty Chemicals
Evonik Chemicals – A leader in Specialty Chemicals 2008 Sales (€ bn) Strong market positions 16 15.4 • # 1-3 market positions in 80% of 14 sales 12 11.5 Strong R & D footprint 10 9.3 Evonik Chemicals • More than 20 % of sales generated 8 7.0 7.0 from products younger than 5 years 6.6 6 5.6 5.4 4.8 4
Slide 7: Evonik Chemicals – Strong market positions
Evonik Chemicals – Strong market positions % of sales from products with #1-3 market positions 100% 88% 91% 89% 77% 49% Business Inorganic Consumer Health & Coatings & Performance Industrial Unit Materials Specialties Nutrition Additives Polymers Chemicals Examples • Silicas • PU Foam • Methionine •
Slide 8: Evonik Chemicals – Product excellence - examples
Evonik Chemicals – Product excellence - examples Consumer Specialties FAVOR® Superabsorber Personal Care Polyurethane Additives Health & Nutrition Methionine Catalysts Exclusive Synthesis & Amino Acids September 2009 | Investor Presentation Page | 7
Slide 9: Evonik Chemicals – Global presence
Evonik Chemicals – Global presence Sales & property, plant & equipment (PP&E) by region 2008 • More than 100 production sites in 28 Germany: countries Sales €2.9bn NAFTA: PP&E €2.2bn • Leading market Sales €2.3bn presence in Europe PP&E €0.6bn Rest of Europe: Asia: • Strong footprint in Sales €3.5bn
Slide 10: Evonik Chemicals – Diversified end market portfolio
Evonik Chemicals – Diversified end market portfolio Sales by End Markets (2008) €11.5bn Pharma Home / Personal Care Other Metal 9% Plastic 19% 4% 5% 7% Construction Auto 18% 11% 9% 18% Food Coating September 2009 | Investor Presentation Page | 9
Slide 11: Evonik Chemicals – Strategy
Evonik Chemicals – Strategy Our Vision for Chemicals • Consistent market orientation and customer focus • Leverage innovation and technology as global competitive advantage • Actively develop portfolio – materialize sustainable and profitable growth options Short and Long-Term Financial Targets • Op
Slide 12: Evonik Chemicals – Benchmark setting innovation process
Evonik Chemicals – Benchmark setting innovation process New patents 2003 - 2008 Strong Intellectual Property portfolio 350 329 313 347 340 353 319* 298 289 • >300 new patent applications every year and 228 224 >20,000 patents in total 136 • ~ one third of sales generated from patent-protected 2003 2
Slide 13: Evonik Chemicals – Product innovation - examples
Evonik Chemicals – Product innovation - examples Inorganic Materials Advanced Silanes Functional Silanes Lithium-Ion Technology Performance Polymers ROHACELL® PLEXIGLAS® High Performance Polymers Acrylic Polymers Acrylic Monomers September 2009 | Investor Presentation Page | 12
Slide 14: Evonik Energy - Low risk business model
Evonik Energy- Low risk business model • Germany's fifth largest producer of electricity • Unique & low risk business model • Dedicated leadership in generation and development • World class engineering and operations know-how • Successful German blueprint for international projects Focus on Power G
Slide 15: Evonik Energy - Strong asset base
Evonik Energy- Strong asset base Overview Selected Highlights Iskenderun 1/2, Turkey • Portfolio of 11 hard coal and Hard coal; 1,320 MW; Commercial operation date (COD) 2003 2 refinery power plants • Largest and most efficient power plant in Turkey • Total capacity of ~9,700 MW • Expansion option (
Slide 16: Evonik Real Estate
Evonik Real Estate • Attractive residential real estate portfolio Key portfolio cities within North Rhine-Westphalia • Present in North Rhine-Westphalia with growing demand and migration into urban agglomerations • Focused on attractive micro-locations • Long-term stable cash flow & earnings base •
Slide 17: Solid Financial Performance for the Evonik Group 2006 - 2008
Solid Financial Performance for the Evonik Group 2006 - 2008 Sales 2006 – 2008 (€ m) EBITDA 2006 – 2008 (€ m) Capex 2006 – 2008 (€ m) 9.9% 2.3% 15.5% 15.3% 13.7% 15,873 1,160 14,125 14,444 1,032 2,157 2,236 2,171 935 1 2 3 1 2 3 1 2 3 1 2 3 2006 Sales 2007 Sales Growth 2008 2006 EBITDA 2007 2008 200
Slide 18: Performance 2008 by business unit
Performance 2008 by business unit in € m External Sales Change y-o-y EBITDA Change y-o-y Evonik Group 15,873 +10% 2,171 -3% Chemicals 11,512 +9% 1,600 -1% thereof: Industrial Chemicals 2,737 +12% 363 0% Inorganic Materials 2,208 +19% 315 -13% Consumer Specialties 1,682 +3% 144 -24% Business Units He
Slide 19: Financial structure 2006 - 2008
Financial structure 2006 - 2008 in € m 2006 2007 2008 Total Assets 20,953 19,800 20,099 Shareholders equity 4,320 5,081 5,192 Net financial debt 4,979 3,924 4,583 Pension provisions 4,070 3,894 3,900 EBITDA 2,157 2,236 2,171 Net interest result -470 -466 -530 Operating cash flow pre NWC changes 1,14
Slide 20: Balance sheet structure
Balance sheet structure 12.2008 06.2009 12.2008 06.2009 26% 28% Equity Non-current assets 68% 72% 52% 53% Non- Current liabilities Current assets excl. 29% cash & cash equivalents 26% 22% 19% Current liabilities Cash & cash equivalents 3% 2% €20.1bn €18.7bn €20.1bn €18.7bn Assets Liabilities Septemb
Slide 21: Current status of financing Q2/2009
Current status of financing Q2/2009 Key components Debt Maturity Profile as of June 30, 2009 (in € m) • €2,829m syndicated loan facility due 03/2011 • €2,250m revolving credit facility central 2,250 RCF liquidity backup (€300m drawn) 1,500 • €183.5m promissory notes (issued July 2009) due 01/2013 73
Slide 22: Finance strategy
Finance strategy Evonik Industries AG is the finance and capital entity for the Group • Align finance structure • Minimize debt at subsidiary level • Asset based financing for Energy and selective Real Estate projects • Establish Evonik Industries as a brand in financial markets • Rating planned in
Slide 23: Cash flow and net debt YTD June 2009
Cash flow and net debt YTD June 2009 Net debt development €-624m Cash flow development €m €553m 5.000 4,583 - 839 +428 - 160 - 71 3,959 4.000 - 456 + 164 + 310 3.000 2.000 1.000 0 Net EBITDA Change Investment Interest & Change in Other Change in Net Financial NWC Tax Provisions Derivatives, Financia
Slide 24: Financial performance through the last four quarters
Financial performance through the last four quarters for the Evonik Group Sales Q3/2008 – Q2/2009 (€ m) EBITDA Q3/2008 – Q2/2009 (€ m) Capex Q3/2008 – Q2/2009 (€ m) -8.2% 16.6% 12.9% 4,139 -15.7% 471 3,801 535 -4.0% 10.3% 510 9.5% 3,205 3,076 361 329 252 159 151 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/20
Slide 25: Decisive actions to improve earnings & cash flows
Decisive actions to improve earnings & cash flows Short-term stabilization of 2009 earnings and cash flow • Cost cutting target of €300m: H1 2009: more than €200m • NWC reductions: H1 2009: €456m • Capex discipline: H1 2009: €310m Sustainable efficiency improvements targets - program “On Track” • Su
Slide 26: Outlook
Outlook • Environment remains challenging in the present economic crisis • Lower sales and earnings anticipated for 2009 • Since Q2/2009 stabilizing trend with slightly improving sales • Counteractions have significant positive impact on earnings and cash flow • Consistent commitment to R&D in 2009
Slide 27: Key credit highlights
Key credit highlights • Leading global Specialty Chemicals player • Activities in Energy and Real Estate with low risk profiles • Excellent market positions and balanced product portfolio in Chemicals • Strong R&D pipeline in Chemicals with focused product development responding to megatrends • Stro
Slide 28: Appendix
Evonik. Power to create. Investor Update Appendix
Slide 29: Balance-Sheet Evonik Group 2008 Assets
Balance-Sheet Evonik Group 2008 Assets September 2009 | Investor Presentation Page | 28
Slide 30: Balance-Sheet Evonik Group 2008 Liabilities
Balance-Sheet Evonik Group 2008 Liabilities September 2009 | Investor Presentation Page | 29
Slide 31: Income Statement Evonik Group 2008
Income Statement Evonik Group 2008 September 2009 | Investor Presentation Page | 30
Slide 32: Cash flow Statement Evonik Group 2008
Cash flow Statement Evonik Group 2008 September 2009 | Investor Presentation Page | 31
Slide 33: Balance-Sheet Evonik Group H1/2009 Assets
Balance-Sheet Evonik Group H1/2009 Assets September 2009 | Investor Presentation Page | 32
Slide 34: Balance-Sheet Evonik Group H1/2009 Liabilities
Balance-Sheet Evonik Group H1/2009 Liabilities September 2009 | Investor Presentation Page | 33
Slide 35: Income Statement Evonik Group H1/2009
Income Statement Evonik Group H1/2009 September 2009 | Investor Presentation Page | 34
Slide 36: Cash flow Statement Evonik Group H1/2009
Cash flow Statement Evonik Group H1/2009 September 2009 | Investor Presentation Page | 35
Slide 37: Business Area Real Estate – Key Financial Figures (1)
Business Area Real Estate – Key Financial Figures (1) Sales 2006 – 2008 (€ m) EBITDA 2006 – 2008 (€ m) Capex 2006 – 2008 (€ m) 464 423 375 217 188 169 103 78 87 1 (2) 2 3 (2) (2) 2006 2007 2008 2006 1 2007 2 2008 3 2006 1 2007 2 2008 3 Size of units (2) Units by # of rooms (2) Residential Portfolio
Slide 38: Overview net financial debt
Overview net financial debt Page | 37
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