DGAP-News

Evonik Industries AG: Evonik specifies outlook for 2016 following a good second quarter - Seite 2

Higher volumes and lower raw material prices improved earnings in the
Performance Materials segment despite a reduction in selling prices.

Outlook
Evonik still expects to report slightly lower sales in 2016 (2015: EUR13.5
billion). Thanks to its strong market positions, balanced portfolio and
concentration on high-growth businesses, the company assumes continued high
demand for its products and appreciable volume growth despite the difficult
macro-economic conditions. The new production capacities taken into service
in recent years and further intensification of sales activities are also
contributing to this. Selling prices are declining considerably, especially
in the Nutrition & Care and Performance Materials segments, leading to a
slight reduction in overall sales.
Based on the good business performance, especially in the second quarter,
and the expectations for the second half of the year, Evonik is specifying
its outlook for the full year: The company is confident that it can realize
adjusted EBITDA in the upper half of the anticipated range of EUR2.0 to
EUR2.2 billion.

Business performance in Q2 2016
In the second quarter of 2016 Group sales dropped 7 percent year-on-year to
EUR3,258 million. While volumes increased in all three chemical segments,
the decline in sales was principally attributable to the fact that selling
prices were lower than in the prior-year period. Adjusted EBITDA was EUR585
million, 11 percent lower than in the exceptionally strong prior-year
quarter.

The adjusted EBITDA margin was very good at 18.0 percent. Adjusted EBIT
fell 16 percent to EUR406 million. Adjusted net income dropped 20 percent
to EUR246 million. Overall, net income was EUR165 million. That was below
the prior-period level of EUR418 million, which contained the proceeds from
the divestment of the stake in Vivawest.

Details of segment performance
In the second quarter of 2016, the Nutrition & Care segment's sales fell 11
percent to EUR1,111 million. This was mainly attributable to lower selling
prices as volume sales increased. Adjusted EBITDA was EUR264 million, which
was below the very high prior-year level of EUR381 million, mainly on price
grounds. The adjusted EBITDA margin dropped to 23.8 percent. In the first
six months of 2016 this segment's sales dropped by 13 percent to EUR2,157
million. While volumes were almost unchanged, lower selling prices were the
main reason for the decline. Adjusted EBITDA was 24 percent below the very
strong prior-year level at EUR557 million. The adjusted EBITDA margin is
still excellent at 25.8 percent.