DGAP-Adhoc

Evonik Industries AG: Evonik publishes preliminary figures for the third quarter of 2020 and updates its outlook for 2020

DGAP-Ad-hoc: Evonik Industries AG / Key word(s): Quarter Results/Change in Forecast Evonik Industries AG: Evonik publishes preliminary figures for the third quarter of 2020 and updates its outlook for 2020 15-Oct-2020 / 12:58 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Essen, October 15, 2020. Evonik Industries AG publishes already today the following preliminary key financial figures for the third quarter of 2020.

Based on preliminary figures, Evonik Group reached an adjusted EBITDA* of €519 million in the third quarter of 2020 (Q3 2019: €543 million), thus clearly above market expectations (analyst consensus disclosed by Vara Research on October 14, 2020: €471 million). During the third quarter, an improving month-on-month trend had already become apparent. This trend further accelerated in September and caused the better than expected results. Main operating drivers were the Specialty Additives and Smart Materials divisions. Specialty Additives delivered ongoing resilience with stable prices and a sustained high margin level of 27.5 percent in the third quarter. Smart Materials demonstrated stability in Inorganics like H2O2 or Catalysts and benefitted from improving trends in the automotive-related businesses.

Sales of Evonik Group for the third quarter 2020 amounted to €2.917 billion, compared with €3.232 billion in the prior-year quarter. Consensus expects this number to be €2.928 billion.

Adjusted net income* in the third quarter decreased from €195 million in Q3 2019 to €186 million in Q3 2020 (analyst consensus: €168 million). Adjusted earnings per share* declined from €0.42 in Q3 2019 to €0.40 in Q3 2020 (analyst consensus: €0.36).

Despite the lower earnings level in the first nine months, free cash flow* is expected to be at least on prior year's level (1-9 2019: €417 million). Implemented structural cost savings as well as lower bonus and tax payments over the course of the year contributed to this performance. In addition, a positive development in net working capital is expected for the remainder of the year.