20
1 Evonik Venture Capital October 2016
1
Evonik Venture Capital
October 2016
2
Table of contents
1. Evonik at a glance
2. Evonik Venture Capital
3. Specialty Chemical segments
| October 2016 | Evonik Venture Capital
3
Employees December 31, 2015
33,57618.2 %Profitability (adjusted EBITDA margin)
€2.465 billion Adjusted
EBITDAReturn on capital
Employed (ROCE)
16.6 %
€13.5 billionsales
2015: Evonik in figures
| October 2016 | Evonik Venture Capital
4
Leading in Specialty Chemicals
Leading market
positions in
80% of our businesses1
Strong customer intimacy
and tailor-made solutions
with
almost 90% of direct sales
Most products with
small volume
but big impact in customers’ end
products
~500
R&D projects driving future sales
potential
Average
volume growthfrom 2010 until 2015
more than 4% in our growth segments2
Market leader Customer proximity Value proposition Innovation power Growth profile
| October 2016 | Evonik Venture Capital
1. Sales with top 1-3 market position by sales, production volume or capacity (depending on available data) | 2. Nutrition & Care and Resource Efficiency
5
Consistent execution of differentiated segment strategy
| October 2016 | Evonik Venture Capital
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 / MarginSales Adj. EBITDA / Margin
Sales
€13,507 m
Adj. EBITDA
€2,465 m
Margin
18.2%
ROCE
16.6%
2015 Financials
6
Evonik Group22 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
| October 2016 | Evonik Venture Capital
2015 financials; Business Lines ranked by turnover
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 / MarginSales Adj. EBITDA / Margin
7
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
7Acquisition 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
| October 2016 | Evonik Venture Capital
1. Construction between 2012 and 2015
8
Innovation excellence: Evonik growth fieldsLeveraging our core competencies into highly attractive markets
| October 2016 | Evonik Venture Capital
Evonik Growth Fields
Healthcare Solutions
Smart Materials
Sustainable Nutrition
Cosmetic Solutions Membranes
Advanced Food Ingredients
Evonik Technology Competence Fields
Polymer DesignInorganic
Particle Design
Interfacial
Technologies
Coating & Bonding
Technologies
Catalytic
ProcessesBiotechnology
Additional
contribution
to sales
Megatrends
Health & Nutrition GlobalizationResource Efficiency
more
than
€1 billion
by 2025
9
Table of contents
1. Evonik at a glance
2. Evonik Venture Capital
3. Specialty Chemical segments
| October 2016 | Evonik Venture Capital
10
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
| October 2016 | Evonik Venture Capital
11
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
| October 2016 | Evonik Venture Capital
12
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
or are about to do so
typically in syndication with other venture capital investors
| October 2016 | Evonik Venture Capital
13
Evonik Venture Capital portfolio (I)
| October 2016 | Evonik Venture Capital
14
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.
| October 2016 | Evonik Venture Capital
15
Evonik Venture Capital investment team
| October 2016 | Evonik Venture Capital
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
16
Table of contents
1. Evonik at a glance
2. Evonik Venture Capital
3. Specialty Chemical segments
| October 2016 | Evonik Venture Capital
17
Nutrition & CareBusiness Line overview
| October 2016 | Evonik Venture Capital
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
Ke
y
pro
du
cts
Ma
in
Ap
pli
cati
on
s
Ke
y
pro
du
cts
Ma
in
Ap
pli
cati
on
s
Health Care
• Active pharma ingredients
• Pharma grade amino acids
• Pharmaceutical coatings
• Drug delivery systems for
oral 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
18
Resource EfficiencyBusiness Line overview
| October 2016 | Evonik Venture Capital
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
Ke
y
pro
du
cts
Ma
in
Ap
pli
cati
on
s
Ke
y
pro
du
cts
Ma
in
Ap
pli
cati
on
s
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
19
Performance MaterialsBusiness Line overview
| October 2016 | Evonik Venture Capital
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
Ke
y
pro
du
cts
Ma
in
Ap
pli
cati
on
s
Ke
y
pro
du
cts
Ma
in
Ap
pli
cati
on
s
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
20
