● Adjusted EBITDA up 25% to €735m

● Successfully offset the impact of rising costs

● Increase inventory to prevent market risk

In 2022, Evonik ushered in a strong start, and its performance far exceeded market expectations. According to preliminary financial data released today, the Group’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 735 million euros in the first quarter (analyst consensus forecast: approximately 652 million euros).

"We managed to offset the impact of higher variable costs, thanks to higher selling prices across all business segments," said Evonik Industrial Group Chairman Cullman. We still got off to a good start.”

The Nutrition & Consumer Chemicals business unit and the Performance Materials business unit are the two main growth drivers. The essential amino acid business for animal nutrition performed well, benefiting from continued high market demand and rising selling prices. The asset strategy of integrating production resources and setting up three world-class production centers (Singapore, Antwerp, Belgium, and Alabama, USA) has paid off, ensuring a stable and economical supply of products to the Asian, European and American markets. Two major solutions, drug delivery technology and cosmetic active ingredients, also led to a significant increase in earnings.

Benefiting from the increase in market demand and selling price of carbon 4 products, the business of the functional materials business segment performed well. In addition, the segment's current naphtha-based pricing strategy has successfully offset the impact of higher oil prices.

In the first quarter of 2022, Evonik's sales increased by 34% year-on-year to 4.5 billion euros. Adjusted net income rose 49 percent to 356 million euros.

Free cash flow in the first quarter amounted to EUR 133 million (corresponding period in 2021: EUR 312 million). Ute Wolf, CFO of Evonik, said: "The increase in costs, especially the cost of raw materials, has led to an increase in the value of inventories. In addition, we have also increased inventories and prepared for possible supply chain disruptions."

Evonik has reassessed its overall forecast for 2022 given the current low outlook for global economic growth. "We are in a period of unprecedented economic uncertainty. Rising energy prices and huge uncertainty in raw material supply have adversely affected industrial production and the overall economic environment," Cullman said.

Evonik expects global economic growth to reach 3.3 percent in 2022. "Building on a strong start to the first quarter, and provided the current geopolitical situation does not deteriorate further, we are confident that we will achieve our full-year target," Cullman said. Evonik expects adjusted EBITDA in 2022 to be between 2.5 billion and 2.5 billion yuan. Between 2.6 billion euros, sales will be between 15.5 billion and 16.5 billion euros. In 2021, Evonik achieved adjusted EBITDA of 2.38 billion euros and sales of 15 billion euros.

Evonik will release full results for the first quarter on May 6, 2022.