cover who we are. “what counts is what we do” interview with chairman christian kullmann 170 years of expertise in chemistry while the brand is young, the historical roots of the company go a long way back evonik in the ocean’s depths when the lula 1000 submarine plunges into the ocean, its equipment includes a plexiglas® dome
the creative power of specialty chemicals the creative specialty chemicals powerhouse we may not manufacture tires, mattresses, medications, or animal feeds, but evonik is part of all of those products—and many more. while we often contribute only small amounts of material, those contributions are precisely what make the difference. that’s because evonik products make tires fuel efficient, mattresses more elastic, medications more effective, and animal feeds healthier. that’s what specialty chemicals are all about. and when it comes to specialty chemicals, we’re among the best in the world. evonik stands for attractive business and innova- tive prowess. our corporate culture is geared toward results, profitable growth, and increasing the value of the company. operating in over 100 countries, we benefit from close customer relationships and leading market positions. over 36,000 employees are united by the understand- ing that no product is so perfect that you can’t make it better.
evonik at a glance evonik at a glance a strategic management holding company nutrition & care products for applications in consumer goods, animal nutrition, and health re source e fficiency environmentally friendly, energy-efficient system solutions for industry performance materials polymer materials and intermediates mainly for the rubber, plastics and agriculture industries tec hnology & infr astructure site operations, energy and utilities, technical services, logistics, and process technology and engineering € 14.4 billion sales* € 2.4 billion adjusted ebitda* end markets of evonik industries ag food and animal feed automotive and mechanical engineering consumer and personal-care products 80 % of sales generated by leading marketing positions 16.4 % adjusted ebitda margin* € 19.9 billion total assets as of december 31, 2017 € 1.54 earnings per share* >36,000 employees 110 nationalities construction rubber and plastics pharmaceuticals paints and coatings metal and petroleum products paper and printing electrical and electronics renewable energies agriculture other industries * 2017 fiscal year
operational segments operational segments nutrition & care resource efficiency performance materials the nutrition & care segment the resource efﬁciency manufactures products for applications in animal nutrition, health, and the consumer goods we use every day. business development is driven by socioeconomic trends such as the growth of the world’s population and the increasing purchasing power of the middle class in emerging economies. segment delivers high-perfor- mance materials and specialty additives for environmentally friendly, energy-efficient system solutions for customers in the automotive, paints, coatings, plastics, and construction indus- tries, among others. increasing demand for resource conservation in production drives business development in this segment. the performance materials segment produces polymer materials and intermediates mainly for the rubber, plastics and agriculture industries. factors that drive growth include increasing globalization, rising mobility, and urbanization, and performance materials is responding to these trends with the intelligent further development of their products, chemical and business processes. € 4,511 million sales* € 5,395 million sales* € 3,781 million sales* 8,257 employees* 10,260 employees* 4,364 employees* number one in markets for number one in markets for number one in markets for dl-methionine amphoteric surfactants ceramides isophorone chemistry oil additives silica polyamide 12 butene-1 alkoxides * 2017 fiscal year
contents 2 better with evonik how we give products their unique properties 38 ideas for the digital future chief digital officer henrik hahn on evonik’s status as a pioneer 48 one-two pass our unique partnership with the borussia dortmund soccer team 16 our operational segments close relationships—to the markets and with our customers contents 2 4 how we give products their unique properties interview with evonik chairman christian kullmann 9 evonik in numbers 10 the team at the top 12 16 the road to proﬁtable growth a portrait of the nutrition & care segment 18 sustainable animal nutrition 20 well-groomed needlework 22 a portrait of the resource eﬃciency segment a faster route to the perfect paint 24 26 building and preserving 28 a portrait of the performance materials segment 30 robust plastics 32 evonik in the ocean’s depths 34 a team with a global foundation interview with chief digital oﬃcer henrik hahn the recipe for innovation bringing specialty chemicals to life evonik and bvb: the perfect one-two pass history: 170 years of expertise in chemistry 38 42 46 48 50 52 evonik worldwide photo credits cover photo: karsten bootmann/evon- ik; p. 1: 123rf, henning ross, shutterstock, bozzo/evonik; p. 2 – 3: getty images (3), 123rf (2), cloud n°7; p. 4 – 7: andreas pohlmann/evonik; p. 8: harald reusmann/evonik; p. 10 – 11: andreas pohlmann/evonik; p. 12 – 15: istockpho- to (9), dirk bannert/evonik; p. 16 – 17: fotolia/westend 61, istockphoto, getty images, ptestockboy/alamy stock pho- to, 123rf; p. 18 – 19: veramaris (2); p. 20 – 21: istockpho- to; p. 22 – 23: harald reusmann/evonik, frank preuss/ evon- ik, getty images (2), strandperle/fotolia; p. 24 – 25: dirk ban- nert/evonik (2); p. 26 – 27: rebel/fotolia; p. 28 – 29: lina nikelowski/evonik, getty images (2), triton submarines; p. 30 – 31: istockphoto; p. 32 – 33: dave moterhshaw/evonik; p. 34 – 37: dieter debo/evonik, werner bartsch/evonik, evon- ik (3), dirk bannert/ evonik, kirsten neumann/evonik, frank preuss/evonik (2); p. 38 – 39: frank preuss/evonik; p. 41: henning ross; p. 42 – 45: artundwork.kommunikation gmbh/ evonik, karsten bootmann/evonik, istockphoto, harald reus- mann/evonik (2), dirk bannert/evonik, evonik (2), lina nike- lowski/evonik, frank preuss/evonik (2), andreas heddergott/ tu munich, dieter debo/ evonik; p. 46 – 47: lina nikelowski/ evonik, stefan wildhirt/evonik; p. 48 – 49: dirk bannert/evon- ik, kirsten neumann/evonik, bozzo/evonik; p. 50 – 51: jochen balke/evonik, evonik corporate archives; p. 52 – 53: evonik
products evonik products better with evonik we give products their properties nothing is so perfect that you can’t make it better. through the use of specialty chemicals, we can make the products we use in industry and in our everyday lives more comfortable, safer, healthier, and more practical. we don’t r aise c h ic k ens ... ... but we help them grow more sustainably. our amino acids help animals better utilize their food, which not only means that farmers need to include fewer proteins in their feed blends—the ani- mals also need less food over- all. that has a number of positive consequences when it comes to food security for the world’s steadily growing population, as it both decreases nitrogen and co2 emissions and reduces glob- al consumption of water, energy, and arable land. 2 we don’t have stadium seats in our portfolio... ... but because of us they can take a real beating. thanks to triacetone amine derivatives incorporated into the seat material, stadium seating can withstand more than just countless fans and boisterous soccer celebrations; they also resist uv radiation from sunlight—an opponent that makes itself felt for far longer than just 90 minutes. we don’t sell m at tre s se s ... ... but we do make them more comfortable. that’s because our additives for polyurethane foams en- hance their comfort characteristics, so that when you go to bed, you sink into your viscoelastic mattress before you sink into dreamland. and thanks to our formulations, upholstered fur- niture and car seats perfectly conform to the contours of your body.
products evonik products tire s . .. ... don’t come from our factories. but we help them save gasoline. energy-saving tires reduce fuel consump- tion by up to 8 percent. the silica-silane system from evonik they contain reduces gas-guzzling rolling resistance in tires while improving their skid resistance and wet grip. that way, the only one caught in a tailspin is the gas station attendant—every time you pass by without stopping. diaper s ... ... are not part of our product portfolio—but absorbency is. our superabsorbents are capable of absorbing and retaining up to 500 times their own weight. even un- der pressure—like when babies sit on their diapers—these little power- houses keep all of the liquid in. we don’t build buildings ... ... but we make sure they are waterproof and more sustainable. our building protection agents are blend- ed into the liquid concrete used in home construction to form a deep, uniform bar- rier against water penetration. that keeps the foundation of the building sturdy for years to come and lets homeowners enjoy dry feet. but if they are going to be both dry and warm, then the cold has to be kept at bay. and calostat® insulation panels can help. this silicon dioxide material is recycla- ble, non-ﬂammable, and has extremely good insulating values. that protects the envi- ronment—by signiﬁcantly reducing heating needs—while also improving ﬁre safety. 4 four time s be t ter evonik makes medications... 1... more eﬀective: medica- tions with highly potent ac- tives are used above all for treat- ing cancer. because they are so eﬀective, tiny amounts are all you need. and evonik has a greater production capacity for these high-potency actives than any other pharmaceutical indus- try contractor in the world. 2... more targeted: our eudragit® pharmaceuti- cal-grade polymers encapsulate active agents and then dissolve right where they are needed in the body. 3... more aﬀordable: modern tablet presses can produce up to 1.6 million tab- lets—per hour! our aerosil® ﬂow enhancer ensures that the active agents will be evenly distributed no matter how fast the material is ﬂowing. 4... longer lasting: needles are out of a job! that’s be- cause we take active agents that physicians used to have to inject into patients and package them in lactic-acid-based copolymers. once in the body, this “pack- aging” dissolves in a controlled manner to release just the right amount of actives. 3
chairman of evonik‘s executive board evonik chairman of evonik‘s executive board interview with christian kullmann “what counts is what we do” christian kullmann became chairman of evonik’s executive board on may 23, 2017. in this interview, he describes what he has achieved so far and in which direction he wants to lead the company. 4
chairman of evonik‘s executive board evonik chairman of evonik‘s executive board mr. kullmann, you run a corporation that makes products hardly anyone has heard of. what does evonik actually do? we make specialty chemicals. that means we pro- duce sophisticated chemicals and develop solu- tions for our customers’ problems. which problems? which customers? we don’t think there’s a product on earth that’s so good it can’t be improved. we do everything in our power to make things healthier, more dura- ble, a more eﬃcient use of resources—simply bet- ter. that includes everything from sustainable salmon farming, cold-foam mattresses, and tooth- paste to tires, prostheses, and 3d printing. how do you do that? take specialty additives, for instance: these are ingredients that have a major eﬀect, even in small amounts. our customers use these additives in their own production processes to turn an ordi- nary product into an extraordinary one with unique, positive properties. how do you know what your customers need? in the ﬁeld of specialty chemicals, we work very closely with our customers and develop a lot of products together. thanks to the good, lasting relationships that result, we understand our cus- tomers’ products and their businesses very well. in which countries are evonik products marketed? we do business in over 100 countries on all con- tinents, but our focus is on europe, north amer- ica, and asia. “if you want profitable growth, you certainly can’t afford to stay put.” c h r i s t i a n k u l l m a n n try is south carolina, where all of the leading tire manufacturers have major plants. so that’s pre- cisely where we’re building our new plant. that hasn’t always been the case at evonik. even though the name evonik has only been around since 2007, our company’s history goes all the way back to the 19th century. and that his- tory is marked by constant change. any company wanting to assert itself on the world’s markets has to change with the times. it has to recognize devel- opments on the markets and in society early on and then adapt its businesses accordingly. and we’ve been doing that quite consistently. by focusing on chemistry? in september 2007, evonik was still a conglomer- ate doing business in energy, real estate, and chemistry. in the years that followed, we moved step by step to turn that into the company we know today, which is focused on specialty chem- icals and has been listed on the stock exchange since 2013. people who worked at rag, degussa, and many other companies have become evonik employees—a force of over 36,000 women and men around the world. and where is evonik’s production located? preferably wherever our customers are. take car tire manufacturers as an example: we supply these customers with specialty products that reduce rolling resistance and, in so doing, help lower fuel consumption. one hub of the tire indus- is that the end of the transformation for now? i don’t think so. as i see it, both our era and our industry are hallmarked by constant change. if you want proﬁtable growth, you certainly can’t aﬀord to stay put. 5
chairman of evonik‘s executive board evonik chairman of evonik‘s executive board “we’re not looking to buy at any price, and a solid financial situation is important to us.” c h r i s t i a n k u l l m a n n in that respect, you’ve set quite an ambitious goal: we aim to be the best-in-class specialty chemicals company in the world. that’s easier said than done. how would you measure that? today’s evonik is a powerful, successful company. we have excellent employees, we’re innovative, and we’re profitable. most recently we achieved an ebitda margin between 16 and 18 percent. that would be enormous in other industries, but in the field of specialty chemicals, that doesn’t yet put us at the top. which is why we’ve set ourselves the goal of increasing our margin to between 18 and 20 percent. that would make us a top per- former within the chemicals industry as a whole. but surely proﬁt margins are not the only criterion? that’s quite right. the executive board is focus- ing on three strategic success factors: on innova- tive power revolving around the needs of the cus- tomer, on active portfolio management, and on an open corporate culture geared toward perfor- mance. these are the areas where we are concen- trating our efforts, and we’re convinced that this strategic approach will bear economic fruit. what does active portfolio management mean to you? orienting the company toward growth markets and high-margin businesses in the specialty chem- icals sector. we’ve already made tremendous strides down that road. we successfully concluded the largest purchase in our company’s history when we acquired the air products specialty additives business in the u.s. and while signifi- cantly smaller, the purchase of dr. straetmans, a family-owned business in hamburg, was also a perfect fit for our strategy. can you imagine more acquisitions? can i imagine them? sure. we want to keep grow- ing, after all. to do that, our first step is to invest in our own business, expand our production, and tap into new markets. the second step is to keep investing strongly into research and development. and thirdly, we’re watching the markets and the road to profitable grow th we’re working to increase the value of the company through a strategy based on three pillars: portfolio, innovation, and corporate culture. bal anced portfolio our active portfolio management and investment activities are hallmarked both by growth markets and by our clear character as a specialty chemicals company. customer-focused innovation our research and development activities are geared toward intense collaboration with customers and partners all along the supply chain. succe ss - oriented culture our corporate culture is based on trust, respect, and openness— paired with a diverse, international atmosphere. 6
chairman of evonik‘s executive board evonik chairman of evonik‘s executive board christian kullmann became chair- man of evonik’s executive board in may 2017. keeping an eye out for opportunities. but at a relaxed pace—there’s no rush. with the right ﬁt and the right price, we’d be ready. but we’re not looking to buy at any price, and a solid ﬁnancial position is important to us too. so will evonik keep getting bigger over time? depends what you mean by ‘big’. we want to be better—in terms of earnings, proﬁtability, and innovation as well. but active portfolio manage- ment is about more than just acquisitions. we also have to consider divesting businesses if they no longer ﬁt our strategy. which businesses are those? with some businesses, success ﬂuctuates strongly with the price of raw materials, so they can hardly meet our expectations when it comes to stable margins over the long term. in those cases we look at every possibility—including the option of ﬁnd- ing a better owner. you also want to grow research and development. in which ﬁelds? we love chemistry, but our research is about more than just a love of science. the goal of our research and development is innovation—in other words, the successful marketing of new products. to this end we’ve deﬁned six ﬁelds where we see exception- ally good opportunities for successful innovation: sustainable nutrition, healthcare solutions, advanced food ingredients, membranes, cosmetic solutions, and additive manufacturing. could you give an example of successful innovation? our veramaris project, which we’re pursuing together with dutch company dsm. the project revolves around the very speciﬁc omega-3 fatty acids used in salmon farming, where, up to now, ﬁsh oil and ﬁshmeal have been the primary sources of omega-3 fatty acids. each year some 16 million metric tons of wild ﬁsh are caught in order to pro- 7
chairman of evonik‘s executive board evonik chairman of evonik‘s executive board to produce fish oil and fishmeal. we worked with dsm to find an alternative route: we produce these omega-3 fatty acids using a fermentation process that starts with algae. that conserves resources, goes a long way toward helping com- bat overfishing in the world’s oceans, and makes salmon de facto vegetarians. it’s a powerful exam- ple of our innovative strength. how do you measure that innovative strength? underlying each of the six innovation growth fields is a strategy with business objectives, market objectives, and business models, up to and includ- ing acquiring competencies. by 2025, we hope to earn an additional €1 billion in sales from innova- tions in these fields. another indicator of innova- tive strength is the proportion of new products in our overall portfolio. some 10 percent of evonik’s sales currently come from products and applica- tions that were developed in the past five years. we intend to increase that percentage considerably. you’ve described corporate culture as the third pillar of your strategy. yes. after all, when change is constant, having stra- tegic goals is simply not enough. the culture of a company is a crucial prerequisite for its success. it has to permit and support change. it has to motivate employees, question habits, and look for better paths forward. and it has to ensure that we utilize our mistakes as learning experiences. we want our managers to move boldly ahead, make decisions for themselves, and take on responsibility. ...even if that runs the risk a bad decision? every decision bears the risk of turning out to have been the wrong move in hindsight. but is that a rea- “our initial steps have been promising. we still have a lot of ideas at evonik” c h r i s t i a n k u l l m a n n 8 evonik’s company headquarters in essen son for despondency and stagnation? no. any- where humans work, there are going to be mis- takes. but we can’t let that keep us from making decisions, and that includes taking measured risks. what counts is what we do. does that mean that the new culture only applies to managers? no, that wouldn’t go nearly far enough. each and every employee in the company plays a role in shaping our culture. what’s important here is that we all embrace a performance mindset and keep the lines of communication open―across disciplines and international boundaries. at the same time, employees can rest assured that we won’t put on the brakes any more than we have to. we’re dismantling bureaucracy where it makes sense to do so, eliminating unnecessary regulations, and shortening decision-making lines. and that’s working? we’re off to a good start. a process like this won’t be finished overnight, but our initial steps have been promising. we still have a lot of ideas at evonik, and we’re implementing our strategy one step at a time―with each step taking us closer to the top.
facts, figures, and data evonik facts, figures, and data company facts and figures evonik in numbers an overview illustrating the many facets of a specialty chemicals company. what counts beyond our roughly 4,000 products. 28 countries around the world are home to evonik production sites. 40 sites around the world are dedicated exclusively to research and development. that keeps us in touch with our markets and customers. 10 percent of our sales in 2017 came from products and services that were developed in the last five years. evonik is a registered trademark in 143 countries throughout the world. at precisely 11:30 am on september 12, 2007, the group’s new name evonik and its slogan “power to create” were unveiled at the company’s headquarters in essen (germany). 36,523 employees worked at evonik at the end of 2017. the oldest is a 78-year-old building superintendent in great britain and the youngest is a 15-year- old completing her apprenticeship in brazil. n o i l l i b 1 € is the sales figure we hope to achieve by 2025 with innovations from our 6 innovation growth fields. 9
introducing the evonik executive board evonik introducing the evonik executive board thomas wessel chief human resources oﬃcer, joined the company in 1979 ute wolf chief financial oﬃcer, joined the company in 2006 the executive board the team at the top 10
introducing the evonik executive board evonik introducing the evonik executive board christian kullmann chairman of the executive board, joined the company in 2003 dr. har ald schwager deputy chairman of the executive board, joined the company in 2017 evonik is led by a four-member executive board. at the heart of our culture of management is a relationship of trust between the workforce and the management. to foster that relationship, the executive board adheres to three mutually reinforcing principles: a clear message, consistent action, and a spirit of collaboration with employees. 11
growth engines evonik growth engines portfolio management the road to profitable growth specialty additives, animal nutrition, smart materials and health & care: these terms represent evonik’s four strategic growth engines—and fascinating prospects. specialty additives at home in paints, living-room couches, and motor oil, specialty additives can be found improving the properties of countless everyday items. sometimes enhancing, sometimes augmenting a product’s properties, additives are incorporated during the production process to achieve a variety of effects—whether a specific degree of hardness in cushions or just the right viscosity in lubricants. demand for specialty additives is growing steadily, as they are designed to increase the value and durability of end products and to conserve resources in production to the great- est possible extent. and the profitability of the market makes it exceptionally attractive. 5–6% market growth ––––– product examples: coating additives polyurethane additives oil additives 12
growth engines evonik growth engines animal nutrition 5–7% market growth ––––– product examples: amino acids omega-3 fatty acids probiotics sustainable food production is one of the great challenges of our time. increasing standards of living in emerging economies are driving the growth of global meat production, which, in turn, is raising both the demand for land and the emissions of methane gas from livestock. evonik already has a number of solutions to address this development. additionally, desire for greater food safety and quality and criticism of antibiotic use in animal nutri- tion are influencing the markets—yet another area where evonik is hard at work, developing probiotics for animal feeds, manufac- turing omega-3 fatty acids from natural microalgae to replace the use of fish oil and fishmeal in salmon farming. 13
growth engines evonik growth engines smart materials what we call “smart materials” are materials with custom-made properties that give them a role in optimizing products and product characteristics. one such material is silica, which is used in a wide variety of consumer goods. these small silicon dioxide particles are an important part of products such as toothpaste, paper, and modern tire treads. in tires the properties of silica particles reduce rolling resistance, which, in turn, re- duces fuel consumption. yet another example of a use for smart materials is 3d printing, where the materials involved have to have just the right qualities for printing. here evonik offers its high-performance polyamide 12, a polymer powder that makes faster, more precise 3d printing possi- ble—even for complex components—and in that way fuels the growth of industrial applications for this technology. 4–7% market growth ––––– product examples: silica high-performance polymers membranes 14
growth engines evonik growth engines health & care 5–6% market growth ––––– product examples: pharmaceutical polymers implants biosurfactants the health & care growth engine encompasses products and services in the fields of pharmaceuticals, medical devices, cosmetics, and food supplements. one example of these is the use of pharmaceutical polymers that release medications at the precise location in the body where they are needed—in the right place at the right time. health awareness is rising hand in hand with trends toward an increased emphasis on fit- ness and beauty. with so many people wanting to look young and beautiful for as long as possible, anti-aging products have long been a billion dollar market. evonik supplies that indus- try with innovative active agents that take account of both re- gional differences and sustainability issues. because consum- ers want to use cosmetics with a clean conscience, evonik is increasingly gearing its portfolio toward actives made from alternatives to fossil-based raw materials. 15
nutrition & care evonik nutrition & care a portrait of the nutrition & care segment human needs at the center while nutrition & care’s markets offer first-class growth opportunities, they also come with unique responsibilities. and nutrition & care is ideally suited to take on both. nutrition & care focuses on applica- tions in the fields of health care, nutri- tion, personal care, and hygiene. 16
nutrition & care evonik nutrition & care t he nutrition & care segment helps meet basic human needs. the products of the seven business lines in this segment are found in the consumer goods we use every day, just as they are in health care and animal nutrition. while this focus on human needs carries with it a great deal of responsibility, it is also a tremendous source of motivation. nutrition & care serves growth markets driven by factors such as population growth, increasing life expectancy, globalization, rising affluence, and a heightened awareness of health and sustain- ability issues. examples here include sustainably produced animal proteins for a healthy human diet, high-quality system solutions for cosmetic, personal care, and cleaning products, and power- ful materials for use in household goods. these applications make the segment one of the pillars of growth for the evonik group, serving as it does three of evonik’s four growth engines: animal nutrition, health & care and specialty additives. in order to remain successful in these attractive, highly competitive markets, nutrition & care strives to differentiate itself from the competition through its focus on the customer and innovative solutions. highly developed technology platforms in areas such as biotechnology, silicone chemistry, oleochemistry, and catalysis are not the only con- tributors to that success, however—our dedicated, “we grow alongside our customers as we respond to global trends in nutrition, health care, and sustainability” r e i n e r b e s te chairman of the nutrition & care board of mangagement skilled employees and our global presence are key factors as well. sustainability also plays an instru- mental role in the segment’s business. the solu- tions the segment develops here help decouple economic growth from rising resource consump- tion. the aspiration of nutrition & care is to achieve and expand a position of leadership in its busi- nesses through innovation, close customer rela- tionships, and smart investments. selected products and applications eudragit® helps active agents reach their targets. thanks to metamino®, we’re making poultry production more sustainable. tegostab® makes mattresses more elastic. 17
nutrition & care evonik nutrition & care the rising global consumption of ﬁsh is increasingly being catered for through aquaculture. sustainable animal nutrition good for people and the ocean a breakthrough in research aimed at protecting marine resources: veramaris, a 50/50 joint venture with dsm, produces omega-3 fatty acids from natural marine algae—and makes salmon farming more sutainable in the process. d emand for ﬁsh is on the rise, particularly in developing and emerging economies. fish is an affordable, animal-based food and an ideal source of protein for human beings. in addition, cold-water ﬁsh like salmon supply two omega-3 fatty acids that are important for human health: epa (eicosapentaenoic acid) and dha (docosahe- xaenoic acid). over the past few decades, ﬁsh consumption has risen to roughly 20 kilograms per person per year. because the volume of wild-caught ﬁsh has been stagnant at about 90 million metric tons since the 18
nutrition & care evonik nutrition & care 1990s, however, growth in consumption has been met by aquaculture. according to estimates by the united nations’ food and agriculture organiza- tion (fao), the proportion of fish produced through aquaculture could reach 60 percent as early as 2030. fishmeal and fish oil play a key role in feeding farmed fish, with 16 million metric tons of sar- dines and other small fish caught each year to pro- duce 5 million metric tons of fishmeal and 1 mil- lion metric tons of fish oil—figures with scarcely any room to increase. after all, 30 percent of the world’s fish stocks are already overfished accord- ing to the fao. against this backdrop, efforts over the past few years have achieved massive reduc- tions in the volume of marine resources used in fish feeds, making aquaculture decidedly more sustainable. the vision behind these efforts is to one day raise fish entirely without the use of marine resources. or to put it less technically, to turn salmon into vegetarians. while dietary regi- mens that involve no fishmeal are already avail- able, fish oil remains indispensable—for now. what makes fish oil so valuable for aquaculture are the epa and dha omega-3 fatty acids it contains. these are vital nutrients, both for salmon and for human beings, and neither species can produce them on its own—our only source of these com- pounds is our diet. dispensing with marine resources entirely, however, will require an alter- native source of epa and dha. working with royal dsm of the netherlands, evonik has found a solution: algae oil, which con- tains epa and dha at a concentration of over 50 percent. omega-3 fatty acids originate in marine algae, and move through the food chain until they end up in salmon and, ultimately, people. so why not just skip over the natural food chain and obtain the valuable omega-3 fatty acids from algae directly? just one kilogram of algae oil contains the same amount of omega-3 fatty acids as 60 kilo- grams of fish. in order to produce algal oil on a commercial scale, evonik and royal dsm have established a joint venture called veramaris. beginning in 2019, veramaris will be able to supply some 15 percent of the current annual demand for epa and dha in the entire salmon farming industry. that would be more than just good for salmon and people—it would also help preserve the natural basis for human life and allow the aquaculture industry to grow sustainably. in this context, evonik supports implementation of the united nations’ “global goals for sustainable develop- ment,” especially goal 14, which deals with marine life issues. if conducted using as few marine resources as possible, after all, aquaculture will help supply the growing human population with valuable protein and, at the same time, protect marine life in all its variety. a n i n v e s tm e n t o f u s $ 2 0 0 m i l l i o n at evonik’s site in blair (nebraska, us), veramaris is constructing a plant that will pro- duce omega-3 fatty acids from natural ma- rine algae on an industrial scale. some us$ 200 million is being invested in the plant, which is scheduled to begin production in 2019. blair was selected as the location so that the project could beneﬁt from the decades of experience that evonik has in operating industrial-scale bio- tech processes there. for nearly 20 years, evon- ik has operated a plant in blair that manufac- tures biolys®—the amino acid l-lysine—through a fermentation process. 19
nutrition & care 20
nutrition & care well- groomed needlework nearly one in ten germans has a tattoo—in the us that ﬁgure is as high as one in ﬁve adults. tattooed skin requires special protection, and evonik knows how to provide just that. crown prince frederik of denmark is said to have several of them. heidi klum and british singer adele have one too. what once only decorated the skin of sailors or prison inmates has now ar- rived both in high society and in broad swaths of the population: tattoos. un- like the more reckless tattoo wear- ers of yesterday, today’s hipsters care about well-groomed, healthy skin—so that their body art will continue to look good without any unpleasant conse- quences. and our products can help in valuable ways. evonik has developed formulations that are used in seven different person- al-care products for tattooed skin. be- fore the needle penetrates the skin, evonik products are there to make the skin taut and to stimulate the epider- mis to renew itself. products like these can be used in applications such as lo- tions. after tattooing, they provide nat- ural moisture and either strengthen the protective skin barrier or restore it. our raw materials also produce a smoother complexion, which brings out the de- sign and helps tattoos retain their colors for years to come—an important con- cern, especially for skin frequently ex- posed to the sun. and for those who later regret their tattoo, they can cover it up with camouflage makeup—yet an- other place you’ll find evonik products. 21
resource efficiency evonik resource eﬃciency whether in a wind turbine or in the soles of your gym shoes: materials from resource efficiency increase product longevity, performance, and durability in many applications. 22
resource efficiency evonik resource eﬃciency a portrait of the resource efficiency segment s e l e c t e d p ro d u c t s a n d a p p l i c at i o n s creating sustainable values ultrasil® helps tires save fuel. as they move toward greater resource eﬃciency, many industries are looking for ways to reinvent themselves. the resource eﬃciency segment has the solutions they need. rohacell® makes airplanes lighter. y ou’ll ﬁnd them in the paints and coatings industry, the automotive sector, and in sports and recreation applications: products and technolo- gies from the resource eﬃciency segment are used in many diﬀerent markets. a total of nine business lines deliver solutions for industrial customers who want their production to be more eﬃcient or their products to be more sustainable. the opportunities and challenges these demands present are manifold, which is why the segment covers such a broad array of products and services. lightweight materials from resource eﬃciency, for example, are replacing metal parts in vehicles or, more precisely, in the body, chassis, interior, and engine. that does more than make cars lighter and more eﬃcient: it also reduces fuel consumption and emissions. plus, the segment’s improved products make paints and coatings more durable and sustain- “resource efficiency is a global challenge, and our competencies don’t just make our customers’ products better—they make them more sustainable too.” d r . c l a u s r e t t i g chairman of the resource eﬃciency board of management degalan® makes yogurt cups easier to open. able, improve low-resistance tires, and provide a foundation for industrial-scale 3d-printing technol- ogies. resource eﬃciency also has a role to play in new construction and energy retroﬁts for existing buildings. at the heart of the segment’s work is an eﬀective interplay between research, applied technology, production, marketing, and sales that paves the way for breakthroughs in core markets and entry into new ones. the strategy of resource efficiency addresses two of the four growth engines of the evonik group: expansion of its specialty additives business and of its smart materials platform. this is augmented by innovative growth businesses that allow the company to tap into new product and appli- cation areas. the mission of resource eﬃciency is to help cus- tomers ﬁnd new solutions and improve sustainabil- ity by oﬀering them eﬃciency-enhancing products and technologies. 23
resource efficiency evonik resource eﬃciency fully automated testing of paints and coatings a faster route to the perfect paint as protective shields and beautiﬁers, paints and coatings have to be true jacks-of-all-trades. and demands are on the rise. which is why evonik keeps working to improve products, and now operates a testing facility that shortens the road to the perfect formulation. the fully automated system blends and analyzes up to 120 samples a day. 24 every paint and every coating can be repro- duced in this high-through- put system at the press of a button.
resource efficiency evonik resource eﬃciency this high-throughput plant was developed espe- cially for evonik and is unlike any other in the world. a masterpiece of engineering, the plant consists of 52 elements that perform 30 different func- tions. each of these functions represents a solu- tion to a task such as applying a coating blend onto a plate. located on a space of 120 square meters, the individual elements are connected via a sys- tem of rails for shuttles to transport raw materi- als, product blends, and coated plates from one station to the next. these stations are manned by 13 robots that carry out various work sequences: dispensing raw materials, blending these into paints and coatings, applying them onto plates, and testing the results for the desired properties. the system is fully automated and runs 24 hours a day until it finds the perfect coating. another advantage of the high-throughput instal- lation is that it does not forget. specially developed software saves all of the data, results, and formu- lations, which means that every paint, every coat- ing, and even every intermediate can be repro- duced at the touch of a button—the perfect start- ing point for future development. and evonik’s expertise grows with each and every test. for our customers, that means they can develop and mar- ket their new, innovative products faster than ever before. 40 million different paints and coatings are used around the world each year. 25 coating formu- lations are a combination of craftsmanship, science, and art. p aints and coatings protect buildings from rain, keep the hulls of ships from rusting, make furnishings more attractive, and make cars resis- tant to dirt, uv radiation, and road salt. coating materials have to meet a variety of demands depending on where they are used: one might have to be water-repellent, another might need to be water-based—or maybe both at the same time. still another might need to be scratch resistant and either electrically conducting or insulating. evonik offers a wide variety of raw materials that give paints and coatings these special properties. and that’s not all: we work with and for manufac- turers to develop new formulations. it’s a task that requires a blend of craftsmanship, science, and art. after all, the different ways of combining ingredi- ents are simply endless, with 10,000 permutations resulting from just ten types of pigments, curing agents, binders, and additives that make the coat- ings colorfast and protect them from corrosion. that puts industry between a rock and a hard place: on the one hand, there’s no way to test the properties of every combination in the laboratory, but that, on the other hand, is precisely how new paints and coatings are developed. evonik has found a way out of the dilemma: an innovative system at its essen site makes and tests paints and coatings, aiding in the systematic search for the right ingredients in the right proportions. blending and analyzing up to 120 samples a day,
resource efficiency b u i l d i n g a n d p r e s e rv i n g thousands of cars cross the 18-kilometer storebaelt bridge each day. in addition to that strain, europe’s longest suspension bridge also has to withstand the elements, which is why evonik protects its pylons. bridges in denmark, parking garag- es in new york, and container termi- nals in belgium all struggle against the same adversary: moisture. the porous structures of sandstone, brick, and concrete are especially susceptible to penetration of the masonry by water and pollutants, and if the moisture in- side freezes, it will expand and pro- duce cracks. also, when water pene- trates concrete, the interior steel re- inforcements will rust, producing structural damage and jeopardizing stability. protectosil®, a building pro- tection agent from evonik, can help. the force behind this process consists of functional silanes that can be tai- lored to any kind of weather and any kind of material. these silanes pene- trate deep into construction materials, where they prevent moisture from be- ing absorbed. at the same time, they also allow moisture to escape, just as modern athletic clothing does. treated surfaces also repel oil, remain stable in the presence of uv light, and, on top of all that, provide an eﬀective barri- er to graﬃti. evonik also oﬀers special versions of its products that are virtual- ly free of volatile organic compounds. in addition to the storebaelt bridge and the chancellor’s office in berlin, evonik silanes have protected other buildings throughout the world over the course of the past few decades, including the sydney opera house, the louvre in paris, sidewalks in times square in new york city, and princeton university in the us state of new jersey. 26
performance materials evonik performance materials a portrait of the performance materials segment doing chemistry more intelligently high-quality products and unusual ideas make performance materials a partner to customers all over the world. tinkering, testing, acting on the results, and some- times changing the point of view: that’s how the segment achieves its high-quality results and taps into new business models. shown here: taa deriva- tives improve light stability of stadium seats, turning an everyday object into something truly distinctive. 28
performance materials evonik performance materials t he performance materials segment is a lead- ing provider of polymer materials and inter- mediates. flexible plastics, exciting building exte- riors, exceptionally quiet engines—the high-vol- ume intermediates and customized solutions of this segment are often what make the difference in highly disparate applications. at the heart of this success story are roughly 4,400 employees at over 20 sites who know what quality means, produce reliably good chemistry, and understand the needs of customers and con- sumers. performance materials taps into new markets and sales opportunities with intelligent business ideas and services along the entire supply chain. exam- ples here include digital portals that enable direct dialog, benefitting customers when it comes to prices and services—an initial step toward a digi- tal ecosystem. in another example, the segment also offers innovative, c4-based materials for the rubber, plastics, and specialty chemicals markets. these include driveron®, which allows engines to run quieter and produce fewer emissions, and products in the elatur® family, which result in pleasantly soft polymers for use in popular appli- cations like flip-flops. the segment’s taa deriv- atives improve light stability of plastics such as those used in stadium seats. our alkoxides enable biodiesel production, and our familiar plexi- “it’s not enough to distinguish ourselves with products alone. our future lies in shap- ing our chemical busi- ness intelligently.” j o h a n n - c a s pa r g a m m e l i n chairman of the performance materials board of management glas® brand sets trends and provides inspiration in design, lighting, architecture, and automobiles. the mission of performance materials is to “do chemistry more intelligently”, which means understanding chemical products, chemical and business processes, constantly questioning them, rethinking them, and designing them in innova- tive ways. s e l e c t e d pro d u c t s a n d a ppl i c at i o n s visiomer® im- proves scratch and weather resistance in automotive ﬁnishes. driveron® makes engines run quieter and produce fewer emissions. plexiglas® oﬀers an almost 360-degree view at ocean depths as low as 1,000 meters. 29
performance materials evonik performance materials robust polymers keeping it nice and supple for decorative wallpaper, robust vinyl ﬂooring, and more: plasticizers are what make the pvc in these applications ﬂexible, supple, and thus versatile. elatur® is the latest generation of evonik plasticizers especially designed for indoor applications. p olyvinyl chloride, better known as pvc, is highly sought after among do-it-yourselfers and interior decorators—and with good reason. vinyl wallpaper with an embossed 3d structure can lend an appealing ambiance to any room and is extremely easy to apply. and if you ever need to replace it, you can simply pull it off of the sur- face without wetting it. vinyl flooring is available in countless designs as well, offering deceptively realistic imitations of classic marble, warm wood, or polished stone. and polymeric flooring does more than simply look like these materials—it feels like them too. embossed surfaces simulate the nat- ural structure of wood and yield an anti-slip floor. regardless of the look and feel of the material, the 13.5 million metric tons is the world’s annual demand for soft pvc. 30 advantages of vinyl never change: the surface is pleasantly warm and does an excellent job of muf- fling footsteps. plasticizers are what make all that possible. it is thanks to them that pvc, which is actually brittle and hard, can be turned into a soft, flexible mate- rial that stands up to moisture and to the constant back and forth of chairs. plasticizers act like a molecular lubricant, insert- ing themselves between pvc chains and allowing movement in what was originally a tightly packed, rigid structure whose chains now slide along and past each other. it then comes as no surprise that plasticizers are among the most widely sold specialty chemicals in the eu. evonik has been one of the leading plasti- cizer manufacturers for many years now. and with the latest generation of the elatur® family, the company is helping manufacturers of high-quality soft-pvc products develop long-last- ing formulations with just the right degree of elas- ticity. as one of the foremost plasticizers on the market, elatur® ch is, in terms of quantity, one of the most important components of many soft- pvc products. thanks to its exceptional proper- ties, this molecule makes the crude pvc com- pound more flexible and, as such, easier to work with. in order to produce pvc even faster and to make production more energy efficient, manufacturers often look to special additives such as quick-gell- ing agents. one highlight of elatur® dpt is its
performance materials evonik performance materials particularly favorable environmental profile, which it achieves even while improving the pro- cessing characteristics of soft pvc. researchers at evonik performance materials are already at work expanding the company’s plasti- cizer portfolio even further—for instance with products specially designed for use in materials subjected to extreme climate conditions. the goal is to produce technically outstanding products that are easy to handle and extremely safe, while offering the greatest possible benefit to custom- ers and consumers. flexibility and versatility are characteristics that flooring owes in part to the latest generation of elatur® plasticiz- ers from perfor- mance materials. 31
performance materials e vonik in the oce an’s d ep ths when the lula 1000 submarine plunges into the ocean, its equipment includes a plexiglas® dome that allows its operators to take high- resolution video footage with no distortion—even at nearly 1,000 meters below sea level. and its ﬁndings have been spectacular. marine biologists and historians were equally excited when the lula 1000 resurfaced near the island of pico in the azores, and its crew announced it had found u 581, a german u-boat that was scuttled by its captain 75 years ago during the second world war. the sis- ter ship of the u 96—the famous ves- sel featured in the ﬁlm das boot—was thought to have been lost. a pair of german researchers, kirsten and joa- chim jakobsen, are to thank for the spectacular discovery of the u 581 resting 870 meters below the ocean’s surface. the couple was the driving force behind the lula 1000, which is owned by the rebikoﬀ-niggeler foun- dation. evonik has been supporting the foundation’s research projects since 2013, developing a plexiglas® dome especially for this work. thanks to the production process used, the 14-cen- timeter-thick dome is virtually invisible under water, making it possible to take high-resolution videos at tremendous depths with no distortion. the resulting spectacular deep-sea footage has been in demand among marine biologists the world over. www.world-of-plexiglas.com evonik industries is a worldwide manufacturer of pmma products sold under the plexiglas® trademark on the european, asian, african and australian continents and under the trademark acrylite® in the americas. 32
human resources evonik human resources a team with a global foundation achieving more together our employees throughout the world are the key to evonik’s success. that makes motivating them, developing their professional skills, and retaining them among our top priorities. welcome to e vonik “going purple” is evonik’s onboarding program for new employees. while the first days on a new job are exciting, they often pose a chal- lenge as well—for employees and their managers alike. to help people integrate into the company smooth- ly, evonik’s onboarding team has developed “going purple”. “going purple” is a program that provides the support that managers need to incorporate new employees, as well as colleagues who have transferred from another position within the company. this support is provid- ed by welcoming individuals before they start their new jobs and by pro- viding checklists, a mentor program, networking opportunities, and personal development training. 110 nationalitie s are represented in evonik’s global team. 34 vocational training 38 diﬀerent paths to your career all over the world, young people find their way to evonik after successfully completing high school or university. in germany alone, several hundred recent graduates begin an apprenticeship with us each year. here they become chemical engineering technicians, chemistry lab technicians or industrial me- chanics. those are just three of a total of 38 recognized professions and cooperative study programs that we offer as part of our train- ing services. further, as a result of our digita- lization strategy, we have been equipping all of our apprentices with tablets since 2017. therefore we are able to offer an individual- ized, hands-on learning experience by pro- viding an environment which integrates work and education. after all, good training pro- grams keep evonik ready for the future and serve as the foundation for developing people early in their careers. as of the end of 2017, 1,900 of them were working as apprentices at 17 sites in germany. at roughly 7.6 percent, our training rate is once again significantly higher than germany’s national average.
human resources evonik human resources 3 questions for thomas wessel “diversity helps us foster creativity” mr. wessel, what are the hallmarks of evonik as an employer? evonik combines diversity, reliability, and cre- ativity—and that is every bit as true for our nearly 4,000 products as it is for our em- ployees. we have operations in 100 coun- tries throughout the world, which translates to a huge range of career and development op- portunities in technology, the natural sciences and administrations. evonik is also known for its excellent apprenticeships in many occupa- tions, for attractive remuneration systems, and for encouraging employees to ﬁnd the right work-life balance. what do you expect from applicants? as a specialty chemicals company, our em- ployees’ ideas are our lifeblood. we need ex- ceptionally well-trained men and women if we are to remain competitive on the interna- tional stage. we’re looking for non-tradition- al thinkers who have the courage to take the road less traveled—people who are curious, creative, and innovative, and who have an in- ternational mindset and approach. to what extent is employee diversity a key to success? diversity helps us foster creativity, ques- tion established ideas, and better under- stand the needs of our customers. but when we talk about diversity, we’re not just talking about ethnicity and gender. a variety of dis- ciplines and a range of experience are just as important. we want to utilize the full spec- trum of skills and perspectives that our em- ployees contribute to the company—doing so drives our ability to compete and our innova- tive strength. o u r e m p loy e e s , o u r a m ba s sa d o r s #humanchemistry oﬀers insight into day-to-day life at the company. standing behind our powerful products are our powerful employees— they are the molecules of our company. and on the evonik careers page online, they are also our ambassadors, posting their thoughts and photos under the section #humanchemistry. here they share news and personal experiences at events, tradeshows, meetings, and more. this is where employees from many diﬀerent countries and disciplines give a face to our specialty chemicals business. careers.evonik.com “as a specialty chemicals company, our employees’ ideas are our lifeblood.” t h o m a s w e s s e l , c h i e f h u m a n r e s o u rc e s o f f i c e r at e vo n i k 35
human resources evonik human resources 14.6 ye ar s : the average amount of time that our employees stay with the company. 45 percent: the rate of participation in the share.2017 employee stock purchase program in ger- many—a new record. and at 53 percent, china even set a new global benchmark. 83.9 percent of our employees participated in the last regularly scheduled employee survey. this opportunity to provide feedback has allowed our employees to play an active role in shaping the company’s development for many years. work-life bal an ce for years, our human resources policies have accommodated our employees’ needs for a balance between work and personal life, and we now oﬀer corresponding initiatives for over 94 percent of our employees worldwide. these initia- tives include ﬂexible working hours that encompass a variety of op- tions for working part-time or from home. in germany, we also provide support to employees caring for children or close relatives. our ded- ication to this issue has been docu- mented with the “career and family” certiﬁcate, which we have now been awarded for the third time. nurturing talent... ... and empowering it: evonik seeks to develop talent from its own pipeline. our talent management program targets to develop high-potential employees for key positions across hierarchies, roles, and or- ganizational units. fostering and developing talent mainly focuses on the job and is sup- plemented by development tools and train- ing. we use a structured process to ensure the identiﬁcation of potential and strategical- ly develop it. regular human resources plan- ning conferences serve as a platform to en- able a group-wide exchange of talent, open positions or assignments. further, we devel- op career plans together with our employ- ees which can lead to future roles as man- agers, experts or project leaders depending on the ﬁt of evonik’s need with the suitabil- ity and aspiration of the individual. depend- ing on the need, the individual development plan will deﬁne on-the-job measures as well as additional support such as feedback sys- tems, innovative dialog formats, business school programs or several training formats, which can be online, blended or traditional- ly in the classroom. the guiding principle be- hind the program is that strong characters lead to strong managers. 36
human resources evonik human resources offering prospects evonik and the evonik foundation oﬀer support for school leavers who are not yet ready for an apprentice- ship. the career launch program, which was created by social partners who collaborate with the chemical industry, oﬀers prospects to those people who would otherwise leave school with no chance on the job market. the program allows them to participate in a long-term, compen- sated internship where they become familiar with careers in technology and the natural sciences. participants also receive technical assistance and support from social workers. the program has been expanded for refugees, who receive language instruction as well. evonik is now taking part in the career launch program for the 17th time; this marks the third time that the evonik foundation has participated. honoring ac hievement the success of our compa- ny is based on a healthy, perfor- mance-oriented mindset and on the individual motivation of each and every employee. fair compensation commensurate with an individu- al’s performance is every bit as cen- tral to our success as our annual em- ployee performance and develop- ment review between employees and their supervisors. our remu- neration systems are designed to be competitive in the respective mar- kets, both for specialist and man- agement positions. on the basis of assessment criteria that are uniform throughout the world they put an emphasis on performance-related compensation. for large parts of our workforce, compensation also en- compasses variable components tied to the company’s economic success and individual job performance. the future of work whether the discussion is about digital solutions for production and technology or agile work meth- ods in flexible teams, the digi- tal transformation opens great op- portunities—and creates immense challenges for the entire indus- try. #humanwork provides con- crete business examples illustrating where digitalization creates added value and how it impacts employ- ees. evonik oﬀers new work labs that give employees an opportu- nity to play an active role in issues of work 4.0 and to try out uncon- ventional approaches to the profes- sional world of tomorrow. “discovering and designing the future of work—that’s what new work labs are all about.” sa r a h d i t t r i c h - s c h l e g e l , c o r p o r at e h u m a n r e s o u rc e s doing integr a- tion right acquiring the specialty additives business of air products and the silica business of j. m. huber has done more than just expand evon- ik’s product portfolio. these 2017 acquisitions also added just under 2,000 employees to the group fam- ily—all over the world, from kawa- saki in japan to los angeles in the us. being able to successfully inte- grate these colleagues meant care- fully preparing for the change with numerous welcome events, work- shops, and personal meetings. as a result of those eﬀorts, the former employees of both companies have now arrived and are happy to be part of our global team. “we will never be the best specialty chemi- cals company in the world without putting people first: #humanwork.” n i l s g l e i m , e vo n i k d i g i ta l 37
digital evonik digital interview with chief digital officer henrik hahn “we’re not pursuing digitalization for its own sake” when it comes to the work of tomorrow, evonik sees itself as a pioneer in the chemical industry. this is why the company has a team modeled on a startup—outside of corporate headquarters and with a great deal of freedom—to develop digital solutions and concepts, both on the company’s behalf and with the company’s input. dr. hahn, evonik is a successful player in the specialty chemicals industry, it has highly qualiﬁed employees, and its products are in demand the world over. so why enter the digitalization business now? what do you expect that to achieve? evonik is taking on digitalization because we want to be successful in the future too. i’m convinced that digitalization is going to impact every person and every company in the world—no matter what country or industry you’re in. evonik aims to adapt to that reality early on so that we can play a mean- ingful role in shaping the process of change. that strategy will allow us to keep pace with the com- petition and retain our innovative strengths. at the same time, however, we are well aware that digitalization is all about human beings, and our #humanwork hashtag distills that philosophy down to its essence (see page 41). you say we want to play an active role in shaping these changes. what does that look like in the specialty chemicals industry? it’s not like you can replace the molecules in evonik’s chemical products with digital versions. digitalization projects at evonik are in fact aimed at a different goal, one i like to call a “user-cen- tered approach”: traditionally, the chief concern in the chemical industry has been to deliver prod- ucts to its customers safely, reliably, and at a con- sistent level of quality. but even in the chemical industry, the question is no longer going to be just about what we produce, but increasingly how we interact with our customers. and we certainly could offer more in that respect: custom solutions, for one, in the form of all-in-one packages that meet an individual customer’s needs as precisely as possible. we want our business customers to say to themselves, “at evonik, they’re offering me exactly the product i need—plus a whole lot more.” what are you picturing when you say that? that ‘whole lot more’ could be exceptionally qualified consulting services, for example. it could be precise analytical services for custom- ers. or it could be offers to work together on developing innovations and launching them on the market. but all of those things are going to mean entering into an intense level of informa- tion sharing. after all, we want to do a better job of understanding—and meeting—our customers’ needs and wants going forward. digitalization opens a lot of new opportunities for doing that. in other words, it’s ultimately going to help us provide comprehensive support for our custom- ers’ success. 38
digital evonik digital about dr. hahn henrik hahn is a process engineer who began working at evonik in 1999 and has been responsible for the group’s digitalization strat- egy since 2016. after joining the company as a process engineer stationed in the us and belgium, he moved into various manage- ment positions in the areas of tech- nology and innovation. his assignments have included establishing and managing a corporate start-up for developing and producing components of lithium-ion batteries. even while pursuing his ph.d. in rheology and fluid mechanics, he was fascinated by digitalization in the form of data analysis and modeling. as part of his degree in economics, he grappled with information economics, studying questions of supply chain management and the application of mathematical game theory to shape cooperate strategies. 39
digital evonik digital “evonik will make €100 million available for digitalization between now and 2020.” h e n r i k h a h n , c h i e f d i g i ta l o f f i c e r are you saying that industrial companies of the future will do more than just manufacture products—that they’ll also act as service provid- ers for their business customers? that’s been the trend for a long time. and prod- uct manufacturing is of course going to remain a core job of industry. it’s just that digitalization opens up so many more possibilities. it gives com- panies a better understanding of what they can do and what others would like to see them do. that runs the gamut from new technologies and new business models, all the way up to new opportu- nities for collaborating in production and sales. evonik wants to make a positive impression on future customers by offering them extra added value—a real advantage for their work. it’s always all about the prospect of value. our customers ask themselves questions like, how will a certain product or a certain service benefit me? what value does it offer me personally? that’s why focusing on the customer is a key issue for me. evonik digital gmbh when it comes to digitalization, evonik sees itself in a pioneering role in the chemical industry, founding evonik digital gmbh in early 2017. the subsidiary, which has been given considerable freedom to develop and flesh out even unusual ideas, intends to focus its eﬀorts on new products and services that will help evonik support the success of its customers. henrik hahn is the chairman of the evonik digital gmbh board of management and also coor- dinates group digitalization activities in his role as chief digital oﬃcer (cdo). 40 what has evonik achieved so far? when it comes to digitalization within the chem- ical industry, evonik sees itself as a pioneer and established an in-house team to work on the issue in 2016. evonik digital gmbh was founded in 2017. the subsidiary was deliberately launched outside of the company’s headquarters—it was modeled after a start-up and given a great deal of freedom. employees there develop and implement digital concepts and solutions, both on the compa- ny’s behalf and with its input. and strategic learn- ing is a very important part of that process for the evonik digital team. as one example, we selec- tively collect additional experience in the field of digitalization as a way of learning more. at the same time, the experts there have launched digi- tal pilot projects that will help us familiarize our- selves with and better understand the needs of our customers. and that aligns with a lot of other dig- italization activities, initiatives, and concepts in the company. could you name a few real-life examples? what exactly do these experts do? imagine a production plant in the chemical indus- try, which now already has a huge amount of data, measurements, and process information. this is an area where digitalization can help sift through the mountains of data to filter out and link to pre- cisely the data that will make production even bet- ter, more efficient, and smoother. and that will enhance the image of reliability that evonik has with its business partners and will make our pro- duction more flexible. that all makes sense—and that’s what we’re working on. here’s another example: if customers want to use an online plat- form to call up product information, expert advice, or services, then evonik shouldn’t be just sitting around passively on the sidelines. and in fact, we’ve already brought some initial projects to fru- ition in this area. how does evonik intend to keep track of all the diﬀerent aspects of digitalization? digitalization isn’t a transformation that just hap- pens overnight. while the changes are relentless, they do come one step at a time. what we’re talking about here is a comprehensive process. to
digital evonik digital the #human- work philosophy is hallmarked by visibly modeling new ways of working. coordinate that process throughout the entire group, evonik created the position of cdo—the chief digital officer—and has entrusted me with that task. if you want to earn money from digitalization, you have to spend some ﬁrst. what is evonik’s position on that? evonik has made €100 million available for digi- talization—money intended for developing and testing digital technologies and for building our expertise through 2020. ultimately, our activities are going to have to pay off for the company as a whole. we’re not pursuing digitalization for its own sake—we’re doing it to help shape develop- ments. to that end we want our employees to get excited, so that evonik can be both a successful specialty chemicals provider and a good, attrac- tive employer. the cultural shift that evonik needs what is behind #humanwork? the #humanwork philosophy supports the cultural shift that evonik needs if we are to excite our employ- ees for the journey into the digital future and to en- courage them to play an active role in that transforma- tion. in other words, #humanwork stands for a mod- ern work environment geared toward the future. the philosophy is hallmarked by visibly model- ing new ways of working and by what we call “dig- ital passion.” an important prerequisite for that is a corporate culture that is open to change, capable of learning, and geared toward performance—one in which continuous feedback, experimenting, flexible work models, and teams that can make their own de- cisions are simply part of daily life. 41
innovation evonik innovation the recipe for innovation research and development are important drivers of proﬁtable growth, and their foundation rests on our culture of innovation, with its ambitious goals, clear strategy, and inspiring work environment. we provide the free- dom employees need to be creative. we cooperate across departments, with customers, and with our external partners. and we incentivize new approaches so that good ideas can be turned into marketable innovations. innovation growth fields we focus our innovation eﬀorts on six ﬁelds oriented toward the group’s strategic growth engines. sustainable nutrition products and services for sus- tainable animal nutrition healthcare solutions materials for implants and inno- vative drug formu- lations advanced food ingredients health-enhancing substances and nutritional supplements cosmetic solutions products for cosmetic applica- tions and formu- lations membranes expansion of eﬃcient gas sepa- ration technologies additive manufacturing products and technologies for (industrial) 3d printing solutions for tomor row ’s problems if we are to make assessments about tomorrow, we have to keep our eyes on the events and developments of today that are setting the course for the future. our foresight team does this by studying a number of in- dicators and developing possible future scenarios. this process involves the application of established meth- ods, such as exploratory scenario planning, which in- volves simulating the hypothetical consequences of events, and step trend analyses, which look at wid- er sociocultural, technological, economic, and political changes. innovative workshop concepts complement those techniques, as does foresight radar, an online tool that the foresight team uses for modeling issues relevant to the company’s future. the team makes the tool available to all evonik employees as a source of in- spiration and, consequently, innovation. 42 in-hou se entrepreneur s when we come across a good idea coupled with an entrepreneurial mindset, evonik honors that combination with its entrepreneurship award. the com- petition brings together experts from all over evonik and gives them an op- portunity to work on a project that goes beyond their own individual parts of the company. the winning team then works at creavis, our strategic innova- tion unit, where it has one year—with ﬁnancial support—to develop the idea to the point of marketability.
innovation evonik innovation cooperating with research partners innovation at evonik also means co- operation. we work with our cus- tomers and with numerous part- ners in science to find creative solu- tions, with the aim of introducing our company to the latest findings in the fields of chemistry, biology, and physics. we pursue unconvention- al means to those ends, such as the evonik call for research proposals, which poses highly specific questions to the scientific community, where it has garnered considerable interest. in order to strengthen our already large network with top international re- searchers and universities, we regu- larly host the evonik meets science forum in germany, asia, and the us. here we share findings with leading scientists from a huge array of disci- plines and institutions. the winners of the 2107 innovation award: gutcare® is a probiotic developed to improve intestinal health in poultry while rolling back to use of antibiotics. shining a spotlight on innovation a new product? an improved process? or a technology that offers solutions to challenges in the specialty chemicals industry? evonik honors outstanding innovations in chemistry that move the company forward, conferring its internal innovation award in two categories each year. a jury consisting of the chief innovation officer and segment innovation managers nominates three teams in each category. the winners are decided on the evening of the awards ceremony. even bet ter together strategic partnerships link us to leading universities in germany, the us, china, and saudi arabia, as well as with singapore’s national re- search foundation. evonik also has a preferred partnership in the form of a framework research contract with the technical university of munich. 1,456 partners have cooperated with evonik on publicly funded projects over the past ten years. 4.4 patents a week were registered by evonik in 2017. 43
innovation evonik innovation insights into innovative technologies evonik engages in venture capi- tal activities in order to secure ac- cess to innovative technologies and new businesses. we selectively in- vest in specialized technology funds and startups that have a strategic re- lationship to the company. doing so oﬀers us insight into innovative de- velopments in their earliest stages. we work with our partners to de- velop new products and technolo- gies, accelerating our innovations in the process. > 20 inspiring creativity number of companie s in which evonik is an investor. we have been active in venture capital since 2012. in 2017, evonik invested in four startups and three funds, including numaferm, a startup that has devel- oped a biotech platform for produc- ing predictably high yields of pep- tides at a fraction of the cost. while peptides are primarily used as active agents in pharmaceuticals and cos- metics, peptides and proteins repre- sent a commercially interesting class of molecules for use in a variety of other applications as well. the cor- responding markets are the focus of our health & care and specialty additives growth engines, making them an ideal complement to our strategic alignment. 44 as evonik’s strategic innovation unit, creavis concentrates on medium- and long-term innovation projects that support the group’s growth and sustainability strategy while tapping into new business opportunities. creavis researches transformative innovations, taking economic, environ- mental, and social concerns into account as part of its portfolio manage- ment. the unit also identiﬁes areas of future interest and serves the group as an internal incubator. pro jec t hou se s : buildin g e xpertise creavis project houses provide a home for innovation projects that span multiple organiza- tions or that represent an opportunity for evon- ik to develop its expertise. experts from the or- ganizational units involved at a given project house generally come together for three years to collaborate on the development topics aﬀect- ing their house. while the projects and technol- ogies developed there are typically marketed by an operational segment, another conceivable ap- proach would be to develop a competence cen- ter or an internal startup. evonik has established a total of eleven project houses since the year 2000.
innovation evonik innovation from the lab to the market creavis projects support development in operational units, which helps evonik grow and tap into new ﬁelds of business. the following three examples illustrate how this works: guilt-free indulgence as sweet as sugar but with only half as many calories: in addition to its use as a sugar substitute in confection- ery products like candy and chewing gum, isomalt is also suitable as a sweetener for diabetics. and creavis has optimized an isomalt manufacturing process. a joint venture between evonik and rajburi sugar of thai- land began producing this alternative sweetener in early 2017 using the now patented process developed by the creavis team. the application of biotech methods has reduced the number of steps required and increased the ﬁnal product yield relative to traditional methods. energy from waste heat germany produces several hundred terawatt hours of waste heat each year. while what are known as thermoelectric generators or tegs can convert heat to electric energy, thereby making use of the heat generated by indus- trial processes, these generators are expensive and complex to make. a creavis team has now achieved signiﬁcant improvements in how tegs are produced and implemented, making waste-heat utilization feasible for industrial processes where it had not been an option before. their accom- plishment has been recognized with the german sustainability award in the research category. specialt y c hemicals from co 2 and green electricit y in collaboration with siemens, creavis is working on con- verting carbon dioxide (co2) into specialty chemicals us- ing electricity from renewable resources. the team in- tends to do this using electrolytic and fermentative processes as part of rheticus, a joint research project oﬃ- cially launched in january 2018. an initial pilot plant will begin producing chemicals such as butanol and hexanol by 2021—each of which are starting materials for prod- ucts such as plastics and nutritional supplements. produc- tion of other specialty chemicals or fuels is conceivable as well. what we know for certain is that the rheticus plat- form is a far more cost-eﬀective, environmentally com- patible method of manufacturing chemical products than has been available up to now. some 20 scientists from creavis and siemens are working on the project, which is receiving €2.8 million in funding from germany’s feder- al ministry of education and research. evonik.com/rheticus 45
brand communication evonik brand communication evonik is a powerful company and a powerful brand. and just as chemistry plays an omnipresent role in our day-to-day lives, the social commitments of the group can likewise be found everywhere. bringing specialty chemicals to life our objectives engaging with society is an important means of brand communication at evonik, generating awareness and fostering understanding and close relationships. through its cooperative ventures in athletics, education, and culture, evonik hopes to foster a society that is both vibrant and diverse. to that end, we aim to be present in numerous con- texts at once and be a part of people’s daily lives. we turn to business partners, employees, and regional target groups, among other sources, to find reliable partners, to present ourselves as an attractive employer, and to strengthen our regions. the right partners evonik is involved with a large number of institu- tions, projects, and talented individuals that touch people in unique ways, engaging them and expand- ing their horizons. enjoying a close bond based both on the content of their projects and on fun- damental convictions, evonik and its partners pro- vide mutual support for developing their poten- tial and for helping individuals take their strengths to the next level. evonik largely selects partners from three areas: sports reinforce social cohesion. here we pres- ent ourselves as a source of constant, reliable sup- port, helping our partners develop their potential whether at the recreational or elite levels. education is the key to a successful future. as specialists in our respective fields, we hope to inspire and nurture children, young people, and university students with our own enthusiasm for the natural sciences. culture questions assumptions and takes us into uncharted waters. with a focus on our aptitude for self-renewal, our cultural sponsorship activi- ties highlight work that is fresh, courageous, and creative. 46
brand communication evonik brand communication one example of our social commitment promoting culture—and learning from the past evonik’s support for the pop-up monument created by the jewish museum of frankfurt was more than just financial—we contributed to the content as well. u nderlying the pop-up monument is a unique art project: the raumlabor group of archi- tects designed the transparent, walk-in bubble, which stood on willy-brandt-platz in frankfurt for ten days. there it served as a venue for numer- ous events hosted by the jewish museum, with which evonik has partnered for years. against that backdrop, evonik’s involvement was not to remain limited to financial support. “we wanted to engage with the content as well,” says markus langer, who directs brand communica- tion for evonik. over 100 evonik apprentices accepted the invitation to the pop-up monument to grapple with issues of discrimination, of stand- ing up for democratic values, and of the history of the company for which they now work. why? because evonik’s predecessor companies participated in the crimes of the nazis—using forced labor, for instance. “for a long time, our predecessors ignored their responsibility to humanity,” explains dr. andrea hohmeyer, the head of evonik’s corporate archives. “today we’re facing that responsibility.” and that includes dealing with the past openly. “it’s an excellent idea,” says 20-year-old ali had- ron, who has begun training as an industrial mechanic at the darmstadt site. “i’m impressed that other employees would edu- cate us like that about the company’s history.” a temporary installation for the jewish museum of frankfurt, the pop-up monument served as a gathering place for music, literature, and dialog right in the center of frankfurt. evonik provided the museum with support for this project. 47
on the playing field evonik on the playing ﬁeld bvb is synonymous with emotionally charged soccer. the south terrace is the largest standing-room only area of any stadium in europe. 48
on the playing field evonik on the playing ﬁeld partnership the perfect one-two pass evonik and borussia dortmund: a good team—on the ﬁeld or oﬀ. a special partnership has connected the com- pany and the soccer club since 2006. the name evonik did not come into being until 2007, and the borussia dortmund soccer team—bvb— helped make that name familiar to audiences across the globe. bvb welcomes more fans to its stadium than any other soccer club, with an average of over 80,000 people attending every game in league play, and millions of soccer enthusiasts the world over watching the team in yellow and black. through its partnership with bvb, evonik has again proven its creativity, airing imaginative and, in some cases, award-winning ads and commercials that have achieved cult status among many fans. when it comes to their brand identities and values, the spe- cialty chemicals company and the soccer club are not really all that diﬀerent: both emphasize creativ- ity, customer loyalty, and commitment. the two have partnered to create the successful bvb evonik soccer school, which has been keep- ing over 12,000 children on three continents in a good team even oﬀ the ﬁeld: evonik and bvb shape since 2011—and not just in the sense of ath- letics. team spirit and a healthy diet play a big role here too. as one of the most important strategic partners of the only publicly traded soccer club in germany, evonik is now in a long-term relation- ship with borussia dortmund or, to put it in the words of the two companies’ slogans: “power to create” meets “true love.” a l i k a b l e e m b a s s a d o r borussia dortmund players are greeted with enthusiasm when- ever they travel abroad. whether they are playing in an internation- al competition or on the tours the team takes every summer, whether they’re in asia or the americas: the traditional old soccer club is welcomed with open arms. that makes the bvb a likeable ambassa- dor for evonik, opening doors all over the world. in singapore, oﬃces for evonik and bvb are even housed in the same building. 49
history evonik history a long tradition 170 years of expertise in chemistry while the evonik brand has only been in existence since 2007, the historical roots of the group go all the way back to the first half of the 19th century. e vonik’s predecessors came from two different businesses: chemicals and mining. the mining business comprised the former ruhrkohle ag, or rag, which was founded in 1968 in essen as a cen- tralized hard-coal-mining entity. in 2003 the com- pany was split into two, an independent mining group and an independent industrial group focu- sing on the fields of chemistry, energy and real- estate. at that time, a law was passed to regulate the financing, and ultimately, the closing down of all hard-coal mines in germany by the year 2018. the chemical business comprised the (new) degussa ag, which was formed in 2001 by the merger of several chemical companies, all steeped in tradition. one of these was roehm, founded in esslingen near stuttgart, which had relocated to darmstadt in search of a larger site. for similar reasons goldschmidt company had left berlin and moved to essen a few years after its creation. only stockhausen remained at its original site in krefeld. the direct predecessor of the new degussa, based in duesseldorf, was degussa-huels ag, headquar- tered in frankfurt. degussa-huels was itself the product of a merger between huels ag of marl and the (old) degussa ag of frankfurt. after degussa ag of duesseldorf became part of the industrial group emerging from rag, it was renamed evonik industries ag in 2007. the newly established rag foundation became its owner. the energy and real-estate businesses were then divested, after which evonik industries became the specialty chemicals company it is today with operations in more than 100 countries around the world and listed on the stock exchange since 2013. proceeds from the sale of stock were earmarked to finance liabilities arising from the closing of the mines. 1880 stockhausen 1907 röhm 1938 hüls 1873 degussa 1908 skw trostberg 1847 goldschmidt 50 1996 1989 1999
history evonik history the logo with the new evonik brand name was unveiled at com- pany headquarters on september 12, 2007. a small chemical production opera- tion in 1886: the factory yard and workforce of che- mische fabrik th. goldschmidt at its former site along the landwehrkanal in berlin. 1999 2006 rag beteiligungs ag 2007 2006 1968 ruhrkohle ag 51
evonik worldwide 52
evonik worldwide evonik worldwide evonik operates over 130 sites for production and r&d alone. evonik operates production sites in 28 countries on ﬁve continents. evonik has r&d facilities in 13 countries on ﬁve continents. 53
back evonik industries ag rellinghauser straße 1–11 45128 essen, germany www.evonik.com pubslisher external communications tel. +49 201 177-3341 firstname.lastname@example.org agency bissinger[+] gmbh