Evonik Venture Capital October 2016 1 Table of contents 1. Evonik - - PowerPoint PPT Presentation

Evonik Venture Capital

October 2016

Table of contents

• 1. Evonik at a glance
• 2. Evonik Venture Capital
• 3. Specialty Chemical segments

Employees December 31, 2015

33,576

18.2 %

Profitability (adjusted EBITDA margin)

€2.465 billion

Adjusted EBITDA Return on capital Employed (ROCE)

16.6 %

€13.5 billion

sales

2015: Evonik in figures

Leading in Specialty Chemicals

Leading market positions in

80%

• f our businesses1

Strong customer intimacy and tailor-made solutions with

almost 90%

• f direct sales

Most products with

small volume

but big impact in customers’ end products

~500 R&D projects

driving future sales potential Average

volume growth

from 2010 until 2015

more than 4%

in our growth segments2

Market leader Customer proximity Value proposition Innovation power Growth profile

• 1. Sales with top 1-3 market position by sales, production volume or capacity (depending on available data) | 2. Nutrition & Care and Resource Efficiency

Consistent execution of differentiated segment strategy

Nutrition & Care Resource Efficiency Performance Materials Growth Efficiency €4,924 m €1,435 m / 29.1% €4,279 m €896 m / 20.9% Sales €3,435 m

• Adj. EBITDA / Margin

€309 m / 9.0% Sales

• Adj. EBITDA / Margin

Sales

• Adj. EBITDA / Margin

Sales €13,507 m

• Adj. EBITDA

€2,465 m Margin 18.2% ROCE 16.6%

Evonik Group 22 Business Lines grouped in 3 segments

Animal Nutrition Baby Care Health Care Personal Care Household Care Comfort & Insulation Interface & Performance Silica Crosslinkers Oil Additives Coating & Adhesive Resins High Performance Polymers Active Oxygens Silanes Coating Additives Catalysts Performance Intermediates Methacrylates Acrylic Products Functional Solutions Agrochemicals & Polymer Additives CyPlus Technologies

Nutrition & Care Resource Efficiency Performance Materials €4,924 m €1,435 m / 29.1% €4,279 m €896 m / 20.9% Sales €3,435 m

• Adj. EBITDA / Margin

€309 m / 9.0% Sales

• Adj. EBITDA / Margin

Sales

• Adj. EBITDA / Margin

Growth strategy based on three strong pillars

Investments Innovation M&A

Sharpening of specialty chemicals portfolio Additional route for growth and value creation world-scale production plants erected and currently in ramp-up1

7

Acquisition of the Specialty & Coating Additives business of Air Products

~ 3.8 bn USD

Expansion of global production footprint Strengthen leading market positions worldwide Market- and customer-oriented R&D approach Product and process innovation R&D employees drive our innovation efforts across the group

~ 2,700

• 1. Construction between 2012 and 2015

Innovation excellence: Evonik growth fields Leveraging our core competencies into highly attractive markets

Evonik Growth Fields Healthcare Solutions Smart Materials Sustainable Nutrition Cosmetic Solutions Membranes Advanced Food Ingredients Evonik Technology Competence Fields

Polymer Design Inorganic Particle Design Interfacial Technologies Coating & Bonding Technologies Catalytic Processes Biotechnology

Additional contribution to sales

Megatrends Health & Nutrition Globalization Resource Efficiency

more than €1 billion by 2025

Table of contents

• 1. Evonik at a glance
• 2. Evonik Venture Capital
• 3. Specialty Chemical segments

Evonik Venture Capital strategic investor advantage

• As a strategic investor we actively collaborate with our portfolio companies
• We leverage the strengths of Evonik to drive growth at portfolio companies through

strategic, technical and commercial expertise:

• Cooperation with Evonik can provide:

 technological expertise and infrastructure  know-how of manufacturing processes and production scale-up  market experience and global access  expertise in patent strategies and on issues of intellectual property rights  reputation and financial strength

Evonik Venture Capital investment focus

• Lubricant additives (viscosity modifiers)
• Fuel additives
• Additives for eco-friendly and highly solid

industrial coatings

• Crosslinkers for composites, elastomers

and non-solvent coatings

• Functional resins
• Adhesive hot melts
• Heat sealants
• Precipitated and fumed silica
• High perf. polyamide (PA12)
• Polyetheretherketone (PEEK)
• Membranes and polyimide fibres
• Activated base metal catalysts
• Catalysts for industrial & petrochemicals
• Plastics
• Styrene-butadiene-rubber
• High performance polymers
• LED/touch screens
• Construction
• Light-weight systems
• Automotive components
• Polymer additives
• Optical brighteners
• Agro chemicals
• Methylmethacrylate (MMA) & application

monomers

• Methacrylic acid
• Feed additives and services for animal

nutrition

• Active pharma ingredients
• Drug delivery systems for oral and

parenteral dosage

• Tailor-made pharmaceutical syntheses
• Pharma amino acids
• Actives, emulsifiers and conditioners for

personal care applications

• Superabsorbents for baby care, female

care and adult care

• Foam stabilizers, catalysts and release

agents

• Specialty surfactants
• Release coatings and super spreading

additives for packaging, agrochemicals and plastic additives

Nutrition & Care Resource Effficency Performance Materials

Evonik Venture Capital investment outline

• We make medium-term investments in start-up companies and venture capital funds

throughout the world, with a total volume of up to €100 million.

• We generally maintain a minority share and typically invest up to €5 million per

company.  investments are driven by financial returns and strategic goals  in innovative companies within key megatrends and new growth fields of Evonik  typically in series A & B rounds of companies that have already entered the market

• r are about to do so

 typically in syndication with other venture capital investors

Evonik Venture Capital portfolio (I)

Evonik Venture Capital portfolio (II)

• Airborne Oil&Gas - www.airborne-oilandgas.com

Flexible composite pipes for the Oil & Gas industry.

• Algal Scientific - www.algalscientific.com

Beta-glucan as nutritional supplement for feed- and food applications.

• Biosynthetic Technologies - www.biosynthetic.com

Bio-based synthetic oils for the lubricant and cosmetics industries.

• FRX Polymers - www.frxpolymers.com

Non-halogen, poly-phosphonates – fire-resistant plastics.

• JenaCell - www.jenacell.com

Bio-based nanocellulose for wound care and cosmetics.

• Nanocomp - www.nanocomp.fi

Micro- and nano-optical structures for electronic applications.

• Synoste - www.synoste.com

Patient friendly solutions for correcting skeletal deformations.

• Vivasure - www.vivasuremedical.com

Bio-absorbable closure device for large bore holes in the femoral artery.

• Wiivv Wearables - www.wiivv.com

3-D printed, biomechanically optimized insoles.

• Emerald Technology Ventures - www.emerald-ventures.com

Focus on energy, water and materials in Europe and North America.

• GRC SinoGreen Fund - www.grcfunds.com

Focus on material focused green technology companies in China.

• High-Tech Gründerfonds - www.high-tech-gruenderfonds.de

Focus on German early stage companies.

• Pangaea Ventures - www.pangaeaventures.com

Focus on advanced materials companies in North America.

Evonik Venture Capital investment team

Main Office – Hanau, Germany Bernhard Mohr Managing Director Monika Braun Executive Assistant Petra Riva Executive Assistant Mona Friedrich Financial Analyst Anette Kübler Senior Venturing Manager Mark Redshaw Investment Director Jakob Wirbatz Investment Director Stephan Wolf Investment Manager Office – Essen, Germany Jens Busse Investment Manager Office – Parsippany, NJ Office – Woodlands, TX Lutz Stoeber Investment Director Eric Breese Investment Manager www.evonik.com/venturing

Table of contents

• 1. Evonik at a glance
• 2. Evonik Venture Capital
• 3. Specialty Chemical segments

Nutrition & Care Business Line overview

Animal Nutrition

• Methionine
• Lysine, Threonine,

Tryptophan

• Feed additives and

services for animal nutrition Personal Care

• Personal care
• Actives
• Emulsifiers
• Conditioners

Household Care

• Laundry care
• Home care
• Car care
• Fabric conditioners
• Specialty surfactants

Baby Care

• Baby care
• Female care
• Adult care
• Superabsorbers

Key products Main Applications Key products Main Applications Health Care

• Active pharma ingredients
• Pharma grade amino acids
• Pharmaceutical coatings
• Drug delivery systems for
• ral and parenteral dosage
• Tailor-made

pharmaceutical synthesis

• Pharma amino acids

Comfort & Insulation

• Foam stabilizers
• Catalysts
• Release agents
• Furniture / applications
• Construction
• Automotive

Interface & Performance

• Release coatings
• Super spreading additives
• Packaging / tapes
• Agrochemicals
• Plastic additives

Resource Efficiency Business Line overview

Silica

• Precipitated silica
• Fumed silica
• Special oxides
• Silicone rubber
• Tires, green tires & rubber
• Paints & coatings
• Adhesives & sealants

Crosslinkers

• Composites
• Coatings & paints
• Flooring
• Automotive interior
• Crosslinkers for

composites, elastomers and non-solvent coatings Coating Additives

• Eco-friendly coatings (low

VOC, water based)

• High solid industrial

coatings

• Additives for eco-friendly

and highly solid industrial coatings Oil Additives

• Auto & industrials
• Hydraulic systems
• Refinery processing
• Biofuels
• Lubricant additives

(viscosity modifiers)

• Fuel additives

Key products Main Applications Key products Main Applications Active Oxygens

• Oxidising agent in

chemical reactions

• Pulp & paper bleaching
• Hydrogen peroxide

Catalysts

• Activated base material

catalysts

• Precious metal catalysts
• Catalysts for industrial &

petrochemicals

• Silicone rubber
• Tires, green tires & rubber
• Paints & coatings
• Adhesives & sealants

High Performance Polymers

• High perf. polyamide
• Polyetheretherketone
• Membranes and Polyimide

fibres

• Automotive components
• Medical
• Oil & gas pipes

Coating & Adhesive Resins

• Functional resins
• Adhesive hot melts
• Heat sealants
• Polybutadiene
• Hot melt
• Pre coated metal
• Protective coatings
• Road marking

Silanes

• Chlorsilanes
• Organofunctional silanes
• Rubber silanes
• Fumed silica
• Optical fibres
• Adhesive & sealants
• Building protection

Performance Materials Business Line overview

Performance Intermediates

• Butadiene
• MTBE
• Butene-1
• Plasticizers (INA&DINP)
• Plastics
• Styrene-Butadiene-Rubber
• High performance

polymers Acrylic Polymers

• LED/touch screens
• Construction
• Light-weight systems
• Automotive components
• Molding compounds
• Acrylic sheets (Plexiglas /

Acrylite)

• PMMA systems

Acrylic Monomers

• Coatings
• PMMA
• Monomers for specialty

applications

• Methylmethacrylate

(MMA) & application monomers

• Methacrylic acid

Key products Main Applications Key products Main Applications Agrochemicals

• Triacetonamine
• Crosslinkers
• Precursors of glyphosates
• Polymer additives
• Optical brighteners
• Photovoltaic
• Agro chemicals

Functional Solutions

• Alkoxides

(e.g. sodium methylate)

• Catalysts for biodiesel

production CyPlus Technologies

• Sodium cyanide
• Potassium cyanide
• Precious metals mining
• Fine chemicals