Profile
Evonik is a modern industrial group based in Germany with operations around the world. Our Chemicals, Energy and Real Estate Business Areas are positioned at the forefront of their sectors and we are systematically strengthening their quality and technological edge. In 2007 Evonik had over 43,000 employees and generated sales of around €14.4 billion and an operating profit (EBIT) of more than €1.3 billion.
Corporate structure
Our operations are grouped in eight business units which are assigned to five reporting segments: Technology Specialties, Consumer Solutions, Specialty Materials, Energy and Real Estate. The business units act as entrepreneurs within the enterprise and report directly to the Executive Board. The Corporate Center in Essen, Germany, is responsible for the strategic management of the Group. Business units and Corporate Center are supported by a Shared Service Center, which provides Group-wide services such as procurement and payroll accounting.
We have a presence in more than 100 countries and 60 percent of our sales are generated outside of Germany.
Our core competences – creativity, specialization, continual self-renewal and reliability – create value for our customers and pave the way for profitable growth.
Key financial data
Below please find the financial figures of the Evonik Group for fiscal 2007.
Strategy
Our portfolio comprises sound operations and businesses with attractive growth potential. We play a significant role in the response to economic mega-trends such as energy efficiency, health & wellness, and globalization & demographic change, giving us a foothold in new promising markets. Efficient capital allocation and portfolio management are top priorities for the Evonik Group: we invest in businesses with sustained and profitable growth prospects. Between 2008 and 2010 we intend to invest around €4.0 billion in property, plant and equipment. Businesses that do not meet our profitability requirements and are not expected to do so in the future are divested.
Chemicals Business Area
The Chemicals Business Area has around 32,000 employees and is positioned at the forefront of attractive fields in the specialty chemicals market. We hold leading positions in more than 80 percent of our chemicals business and are constantly striving to increase this. That includes strengthening sales and marketing, increasing our presence in attractive growth regions and focusing on the impetus generated by our innovations.
Market-focused research and development (R&D) will drive profitable growth in the Chemicals Business Area in the future. More than 20 percent of sales are generated by products, applications and processes less than five years old. In 2007, our expenditure on R&D again came to over €300 million.
With production facilities in around 30 countries, the Chemicals Business Area has a presence where its customers are. The largest sites, e.g. Marl, Wesseling and Darmstadt in Germany, Antwerp in Belgium and Mobile in the USA, have integrated production structures which are used by various business units. A large integrated production facility for high-performance specialty polymers is currently under construction in China to serve the attractive Asian market.
Energy Business Area
The core competences of the Energy Business Area, which has about 4,600 employees, are the planning, financing, construction and operation of coal-fired power stations. We operate nine coal-fired power stations and two refinery power plants in Germany. Internationally we have major coal-fired power stations in Colombia, Turkey and the Philippines. Long-term supply and purchase agreements with key account customers ensure a sustained return on investment and stable income streams.
Evonik is a leader in modern generation technology for hard-coal that raises efficiency and makes careful use of resources. We are currently building a power station using this technology in Duisburg-Walsum, Germany, with a net efficiency – in terms of pure electricity generation - of more than 45 percent and a rated power of about 750 megawatts (MW). The installed rated power of the Energy Business Area is currently over 9,500 MW, including around 7,900 MW in Germany.
Evonik is well-positioned to participate in the fast-growing future market for renewable energy sources and is one of the German market leaders in mine gas, biomass and geothermal energy.
Real Estate Business Area
The Real Estate Business Area is one of Germany’s largest private housing companies with about 60,000 residential units and a 50 percent stake in THS GmbH, which has a portfolio of more than 75,000 units. The business focuses on letting housing to private households. Sustainable development of the portfolio and intelligent housing concepts covering the entire lifecycle of properties are very important to us. Our vacancy rates and tenant fluctuation – two key indicators in this market – are better than the sector average. The business area has around 500 employees. Geographically it focuses on the Rhein-Ruhr area (North Rhine-Westphalia). Active portfolio management plays an important part in our business model.
