EQS-Adhoc: Evonik Industries AG: Preliminary key figures for the second quarter of 2023 and adjustment of the outlook for the 2023 fiscal year

Essen, July 10, 2023. Evonik Industries AG is already publishing the following preliminary key figures for the second quarter of 2023 and is adjusting the outlook for the entire 2023 fiscal year.

Based on the preliminary, as yet unaudited figures, Evonik expects adjusted EBITDA* of 430 to 450 million in the second quarter of 2023 (Q2 2022: 728 million). The current market expectation is 448 million (Vara Research analyst consensus as of July 10, 2023).

The main reason for this development is the lack of an economic revival so far. In addition, very weak demand and ongoing customer destocking continued in the second quarter across all end markets. Overall, the volumes sold remained at the very low level of the previous quarter. In the specialty chemicals businesses in particular, Evonik nevertheless managed to keep selling prices largely stable. In the second quarter, however, all chemical divisions achieved noticeably lower earnings than in the strong prior-year period.

The economic development was also reflected in the group turnover. According to preliminary figures, Evonik’s sales in the second quarter of 2023 were just under 4 billion. According to the consensus, sales of 4,081 million are expected.

For 2023 as a whole, Evonik had previously expected adjusted EBITDA* in the range of 2.1 to 2.4 billion, although the company had recently only targeted the lower end. Evonik is now assuming continued weak demand without any economic recovery throughout the second half of the year.

Against this background, Evonik is adjusting the outlook for the full year 2023 as follows:

Evonik now expects adjusted EBITDA* of between 1.6 and 1.8 billion (previously: 2.1 – 2.4 billion). The savings measures introduced in the second half of 2022, which already had a positive effect on earnings in the first half of 2023, will continue to ramp up in the second half of 2023 and will contribute around 250 million for the whole of 2023.

The sales outlook will be adjusted to a range between 14 and 16 billion (previously: 17 – 19 billion).

In terms of free cash flow, Evonik therefore expects that the cash conversion rate will continue to develop towards a target value of 40% (2022: 32%), a higher free cash flow than in the previous year (2022: 785 million) is different than previously expected – but cannot be achieved with the lower operating result.

Evonik Industries AG intends to publish the final business figures for the second quarter of 2023 on August 10, 2023 as planned.

Evonik Industries AG is publishing further information in a press release today.

*Explanations of the key performance indicators used can be found in the Financial Report 2022 of Evonik Industries AG from page 226 onwards.

The financial report 2022 is available at:

https://files.evonik.com/shared-files/finanzbericht-2022-8608.pdf

Contact/notifying person:

Tim Long

Head of Investor Relations

+49 201 177-3150

[email protected]