Evonik announces new performance-oriented corporate culture
By making its portfolio more specialty, strengthening its innovation power and driving a performance-oriented corporate culture, Evonik strives to build a best-in-class specialty chemicals company. CEO Christian Kullmann have announced various measures to achieve these goals.
“I am excited at the opportunities that lie ahead for Evonik,” Kullmann told analysts and investors at a strategy update in London. “We will enhance value creation for our stakeholders by sharpening our focus on specialty chemicals, driving innovation and encouraging a trustful corporate culture of measured risk-taking.”
Higher range of EBITDA
With the help of these three levers, Evonik aims to grow sales volumes faster than global GDP. At the same time the company plans to lift its adjusted EBITDA margin into a sustainably higher range of 18 -20 percent, from a historic range of around 16-18 percent. “We want to focus more strongly on businesses with a clear specialty chemicals character,” said Kullmann. “Going forward our portfolio will have a higher share of growth businesses.”
Four areas with margin potential
The company has identified four areas – specialty additives, animal nutrition, smart materials and health care – that have above-average growth and margin potential. These will be the focus of capital allocation. “Active portfolio management with regular strategic reviews as well as improved cost competitiveness will help the group achieve its growth and margin goals,” emphasised Chief Financial Officer Ute Wolf.
Increasing sales of younger products
Evonik’s innovation pipeline will also drive improving profitability. The goal is for products and applications younger than five years to make up 16 percent of sales in the medium term. The company will sharpen the focus of its activities by intensifying collaboration with customers and along value chains. The company aims for a corporate culture in which employees will take action and initiate change. The goal is to develop a more international and diverse mind-set that builds on trust, respect and openness.
Management board complements strengths
The new four-member management board will form a strong and aligned team with complementing strengths. Along with Christian Kullmann (48), Harald Schwager (56) will be joining Evonik on September 1 as the new deputy chairman of the executive board with responsibility for chemicals and innovation. Ute Wolf (49) and Thomas Wessel (54) will continue in their roles as Chief Financial Officer and Chief Human Resources Officer respectively.
