Miscellaneous scientific news/publications, Transfer of Science or Research

Evonik plans to leverage additional growth potential with innovations. “New products, solutions and business models will make a significant contribution to the growth and profitability of Evonik. That is an essential part of our strategic agenda,” noted Harald Schwager, deputy chairman of the Evonik Industries Executive Board and responsible for innovation. Evonik’s innovation pipeline is well filled. The overall value of pipeline projects with detailed business plans has increased by a third over the past five years.

Schwager intends to quickly implement these business plans to generate additional sales from the value of the project pipeline. “We have to bring our innovation projects to customers in faster, even more targeted ways. We will achieve that with greater efficiency in research and development, working in close collaboration with our customers,” he said. In the intermediate term, Evonik’s goal is to increase the sales share from products and applications developed in the past five years to sixteen percent. This portion is currently ten percent.

Evonik wants to increasingly support customer success with digital technologies. The company announced this summer that it would make around €100 million available for digitalization projects. “Our focus is on new business models as well as bespoke solutions and services for customers. Digital change will be an essential innovation driver, moving through the supply chain to reach our customers’ industries,” Schwager emphasized.

Research & development expenses will remain at a high level with over €400 million per year. However, Schwager does not consider research an end in itself. “It must occur in a targeted way in projects that promise more business and growth – in the short, intermediate and long term.” Accordingly, some ninety percent of funds are invested in the research efforts of the operative segments, and specifically in businesses with particularly high growth potential. The revenue share of R&D expenses (R&D ratio) in these businesses is already between 4 and 6 percent. Throughout the Group, the R&D ratio exceeds 3 percent.

“Innovation is the key to securing and expanding our market positions. On top of that, we are focusing on areas that will generate new business for us, driven by innovation,” says Ulrich Küsthardt, Chief Innovation Officer. Evonik places particular emphasis on six innovation growth fields: Sustainable Nutrition, Healthcare Solutions, Advanced Food Ingredients, Membranes, Cosmetic Solutions und Additive Manufacturing. Each of them is backed up by a clear strategy with business objectives, market goals and business models, up to and including the acquisition of competencies. “The innovations from these fields will generate another €1 billion in sales by the year 2025,” Küsthardt explains.

R&D at Evonik in 2016

R&D expenses: €438 million
R&D expenses 2011 – 2016: Average increase: 4% p.a.
R&D ratio: 3.4%
Sales share from new products and applications developed in the past five years: approx. 10%
Value development of the innovation pipeline from 2012 to 2016: increase by one third
Patent-driven sales: 56%
No. of new patent applications filed in 2016: approx. 230
Patents held and applications filed: approx. 24,500
Registered / pending trademarks: approx. 7,000
R&D employees: approx. 2,700
R&D locations: 35

For further information on the specific topics of today's R&D press briefing, please refer to the following publications:

- Evonik brings digitalization to the chicken farm
- Best in class: Evonik develops the most efficient process for manufacturing methyl methacrylate
- Intelligent coatings: Evonik draws a cloak of invisibility over ships

Further information on the topics of the R&D press briefing can also be found in the current edition of “elements.”

Edda Schulze
External Communications
Phone +49 201 177-2225
edda.schulze@evonik.com

Evonik Industries AG
Rellinghauser Straße 1-11
45128 Essen
Germany
Phone +49 201 177-01
Fax +49 201 177-3475
www.evonik.com

Supervisory Board
Dr. Werner Müller, Chairman

Executive Board
Christian Kullmann, Chairman
Dr. Harald Schwager, Deputy Chairman
Thomas Wessel
Ute Wolf

Registered Office is Essen
Register Court: Essen Local Court
Commercial Registry B 19474

Company information
Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-orientated innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 35,000 employees. In fiscal 2016, the enterprise generated sales of around €12.7 billion and an operating profit (adjusted EBITDA) of about €2.165 billion.

Disclaimer
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.

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Weitere Informationen:
http://All press releases, Power Point presentations and images for the R&D press briefing are available for download under the following link: www.evonik.com/innovation