Evonik Industries Ag · XETR:EVK

Evonik Industries — Investor Day (June 2017)

19 slides from Evonik Industries's investor day presentation, Jun 1, 2017

  1. Slide 1: Evonik Strategy Update: Building a best-in-class specialty chemicals company

    Evonik Strategy Update Building a best-in-class specialty chemicals company London, June 1, 2017 Christian Kullmann, CEO Ute Wolf, CFO 1

  2. Slide 2: Evonik management team with clear responsibilities

    Evonik management team with clear responsibilities Executive Board Group Strategy Chemistry & Innovation Financials HR Christian Dr. Harald Ute Thomas Kullmann Schwager1 Wolf Wessel Chairman of the Deputy Chairman Chief Financial Chief Human Executive Board of the Executive Officer Resources Officer

  3. Slide 3: Strong basis for our ambitious vision

    Strong basis for our ambitious vision Market Customer Technology Unique brand Qualified leadership proximity leadership recognition employees Leading market Leading and Highly qualified Almost 90% positions in proprietary technology of direct sales platforms in workforce 80% via as key factor for a

  4. Slide 4: Significant progress achieved over last 3 years

    Significant progress achieved over last 3 years Growth Efficiency 2017 onwards Further balancing of Differentiated Evonik’s portfolio and management of segments financial profile 2014 2015 2016 2017 … New Corporate Acquisitions structure 4

  5. Slide 5: Building a best-in-class specialty chemicals company

    Building a best-in-class specialty chemicals company 5

  6. Slide 6: Targeting excellence in three strategic focus areas

    Targeting excellence in three strategic focus areas Portfolio: More balanced & more specialty Profitable Customer- Growth Open & focused performance-oriented innovation culture 6

  7. Slide 7: Putting Methionine into perspective

    Putting Methionine into perspective Important product for Evonik, but not the core of our investment case Leading position in Methionine with … … lowered dependency  Global market and technology leader  Well-invested global asset setup Rest of Methionine: Evonik Evonik ~10% of sales; Sales 2017 

  8. Slide 8: Portfolio strategy: More balanced – more specialty

    Portfolio strategy: „More balanced – more specialty“ Focus on businesses with specialty chemicals characteristics Low cyclicality; Customer-specific products low raw material dependency and services Above- average growth and margins Mission-critical solutions High customer proximity enabling value-b

  9. Slide 9: Building on our strengths

    Building on our strengths Developing our growth segments and businesses NUTRITION & CARE RESOURCE EFFICIENCY PERFORMANCE MATERIALS €4.3 bn €4.5 bn €3.2 bn Mature Mature Mature businesses businesses businesses Growth Growth businesses businesses Meeting specialty chemicals characteristics Focus of ca

  10. Slide 10: Strategic growth focus

    Strategic growth focus Four growth engines as drivers for profitable & balanced growth NUTRITION & CARE RESOURCE EFFICIENCY Health & Care Smart Materials Four growth Specialty Additives engines Animal Nutrition 10

  11. Slide 11: Four growth engines

    Four growth engines Growth drivers and product examples Growth trends and drivers Product examples Market growth  More sophisticated requirements on additive effects Coating Additives Specialty Additives  Need for increased product performance and PU-Additives 5-6% “Small volume, big impact” effic

  12. Slide 12: Thorough review process of key drivers for value creation

    Thorough review process of key drivers for value creation Capital Cost allocation Continuous & competitiveness  Targeted investments for disciplined  Factor cost (over-) compensation as sustainable growth efficiency target for all businesses process  Value-adding acquisitions  Focus on value-cre

  13. Slide 13: Targeted and disciplined M&A approach

    Targeted and disciplined M&A approach Air Products Huber Silica Dr. Straetmans Performance Materials Purchase price ~ €3.5 bn ~ €600 m ~ €100 m EBITDA margin >20% >20% ~20% Market growth ~4-5% ~4-6% ~10% Business Highly attractive strategic fit, seamless integration into existing businesses Discipli

  14. Slide 14: Leading Innovation

    Leading Innovation Ambitious targets, clear strategy and inspiring culture Innovation Innovation Innovation Targets Strategy Culture  Increase of innovation pipeline value  Balanced innovation portfolio management  Guiding principles of innovation  16% contribution of innovation  Fostering disr

  15. Slide 15: Innovation: Our goals

    Innovation: Our goals R&D rate Evonik growth fields 3 % on Group level; €1 billion additional turnover 4-6 % in growth engines by 2025 Our Goals Products/applications younger than five years 16 percent share of overall sales (medium term) 15

  16. Slide 16: Corporate culture drives performance

    Corporate culture drives performance Business focus Best-in-class team  We take action and initiate change  We build on openness, trust and respect  We reward measured risk taking  We assign responsibility and demand  We promise and deliver – with conviction, accountability clarity and consiste

  17. Slide 17: Strategic agenda reflected in ambitious financial targets

    Strategic agenda reflected in ambitious financial targets Structurally lifting EBITDA margin and driving balanced growth Historic margin range (in %) Targets going forward (over the cycle) Structurally lift EBITDA margin 19.0 into sustainably higher range of 18-20% 18.3 18.5 18.2 Above-average volum

  18. Slide 18: Summary

    Summary Building a best-in-class specialty chemicals company Executing our … for structural uplift strategic agenda… in profitability & growth Portfolio 18-20% EBITDA margin Growth GDP+ volume growth Innovation Culture 18

  19. Slide 19: © evonik

    © evonik

Evonik Industries — Investor Day (June 2017) on 6ix