Evonik industrial group publishes 2019 financial report: keep stable profit

• achieve the expected goal: the adjusted EBITDA will be stable at EUR 2.153 billion, and the free cash flow will be significantly improved Outlook for 2020: the adjusted EBITDA will remain between EUR 2 billion and EUR 2.3 billion, and the free cash flow will increase slightly The new organizational structure will be implemented according to the strategic adjustment of the enterprise In spite of the worsening global economic situation, Evonik has maintained a stable profit Adjusted EBITDA in 2019 was EUR 2.153 billion, compared with EUR 2.150 billion in the previous year Sales in 2019 amounted to 13.1 billion euros, down slightly by 1% from last year "In 2019, we achieved our target Although the market environment is much more difficult than that of the previous year, we still maintain a stable profit, "said Chairman Kullman "Evonik represents reliability and stability." At the annual general meeting of shareholders scheduled to be held on May 27, 2020, Evonik's executive board and board of supervisors proposed to set the dividend at 1.15 euro per share Based on the closing price at the end of 2019, Evonik's dividend yield will reach 4.2%, ranking among the top chemical companies in the world Evonik completed the sale of its methacrylate business in July 2019, which more than doubled its net income this year to 2.1 billion euros Excluding taxes arising from the divestiture of the methacrylate business, Evonik's free cash flow reached 717 million euros Compared with last year, it has been greatly improved "Our initiatives over the past few years to increase free cash flow have been very effective," said ute wolf, Evonik's chief financial officer This year, our goal is to further increase free cash flow " In 2020, Evonik expects sales in its specialty chemicals business to grow However, the weak global economic environment is not conducive to the partial commodity business Based on this, the company expects that the sales volume will remain stable in 2020, and the adjusted EBITDA will be 2 billion to 2.3 billion euros Evonik has been committed to implementing its corporate strategy At present, the company is adjusting its organizational structure to adapt to the strategic growth engine defined two years ago On July 1, 2020, Evonik's current business segment will be reorganized into four major business departments: special additives, nutrition and nursing, intelligent materials and functional materials These four departments are more balanced in terms of scale and business type They will each play a clear strategic role, face the common terminal market, share a unified standard technology platform, and be easier to manage At that time, the four business units will also have their own streamlined and efficient organizational structure At the same time, Evonik defines its mission as an enterprise - to transcend chemical boundaries and lead a better future "This mission answers the question of who we are and what we are working for," Kullman said It will be our compass on the way " Business segment performance resource efficiency business segment: sales in 2019 were 5.69 billion euros, the same as last year The slowdown in demand in the automotive and paint industries has had a negative impact on the business lines of paint additives, paint and adhesive resins, and oil additives Sales of silica business in the end market of adhesives and silicone resin decreased In contrast, the market demand for high-performance polymers is still strong, especially in the field of 3D printing and special film manufacturing The demand of wind power generation market benefits from the use of environmental protection coating system and cross-linking agent business of high-performance composite materials Active oxide business benefits from strong market demand and licensing revenue Adjusted EBITDA for the sector was EUR 1.29 billion, up 1% from 2018 Nutrition and consumer chemicals segment: sales in 2019 were EUR 4.58 billion, down 1% from last year Although the market demand for amino acid products essential for animal nutrition is still strong, the sales price of amino acid products has continued to fall in the past year The specialty products business development of cosmetics solutions business is excellent Adjusted EBITDA of the sector in 2019 decreased by 10% compared with last year, to 728 million euros Functional materials segment: sales in 2019 were EUR 2.04 billion, down 9% from last year The development of functional intermediates business is affected by the drop of crude oil price, the bottleneck of raw material supply and the shutdown period of the plant The adjusted EBITDA of the sector in 2019 was 224 million euros, down 6% from last year Evonik Evonik is a leading specialty chemicals company in the world, with businesses in more than 100 countries and regions In fy2019, Evonik's sales were EUR 13.1 billion, and its operating profit (adjusted EBITDA) was EUR 2.15 billion We transcend the boundaries of chemistry and are committed to creating innovative, highly profitable and sustainable solutions for our customers Evonik's more than 32000 employees around the world have made unremitting efforts to make life better and better Disclaimer to date, references in this press release or any forward-looking statements relating to the future may contain certain known or unknown risks and uncertainties With the change of the company's business environment, the actual development results may not be the same as expected Evonik industries and its group companies will not be obligated to update any forecasts, expectations or statements made in this press release.