Embargoed until: July 31, 2014, 7.00 a.m.
Key Financial Data: First half/second quarter 2014

A solid performance in Q2 2014—
Slight operating improvement compared with first quarter
Key data on Q2 2014:• 3 percent organic sales growth—pleasing increase in volumes
accompanied by declining price pressure• Adjusted EBITDA €473 million, down year-on-year but higher than inQ1 2014
• All segments posted slightly better results than in Q1 2014

July 31, 2014
Barbara Müller
Head of Corporate Press
Phone +49 201 177-3423
Fax +49 201 177-3030
barbara.mueller@evonik.com

Alexandra Boy
Deputy Head Corporate Press
Phone +49 201 177-3167
Fax +49 201 177-3030
alexandra.boy@evonik.com

Key data on H1 2014:• Slight organic sales growth to €6.4 billion• Adjusted EBITDA at a solid level but below the good prior-year figure• Adjusted EBITDA margin 14.5 percent• Cash flow from operating activities increased considerably to €308
million• Adjusted net income dropped 28 percent to €361 million• Outlook for 2014 confirmed and specified

Essen. "Strong demand for our products was registered worldwide in thesecond quarter of 2014 in a slightly positive economic environment. Our
business developed solidly overall," said Klaus Engel, Chairman of theExecutive Board of Evonik Industries AG, today, when the Group
presented its key financial data for the second quarter and first half of2014. "Overall, the clear downward price trend for some important
products observed in previous quarters slowed perceptibly. The earnings
performance of all our segments improved slightly compared with thefirst quarter."
Overall, the Group achieved organic sales growth in the first six monthsof 2014. The operating results were solid, although they were below thegood prior-year level due to the erosion of selling prices for some
important products.
Evonik is confirming and specifying its outlook for 2014 as a whole.

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Evonik Industries AG
Rellinghauser Straße 1-11
45128 Essen
Germany
Phone +49 201 177-01
Telefax +49 201 177-3475
www.evonik.de
Supervisory Board
Dr. Werner Müller, Chairman
Executive Board
Dr. Klaus Engel, Chairman
Christian Kullmann
Thomas Wessel
Patrik Wohlhauser
Ute Wolf
Registered office Essen
Registered court
Essen local courtCommercial registry B 19474
VAT ID no. DE 811160003

The company still anticipates that sales will rise slightly (2013: €12.7billion) and that adjusted EBITDA will be between €1.8 billion and€2.1 billion (2013: €2.0 billion).
On the price front, Evonik expects the stabilization that has been evident
so far to continue. In some businesses, a slightly positive price trend isvisible. However, so far this does not apply to the Specialty Materials
segment, where price trends have remained below the originalexpectations. If this should continue for the remainder of this year,
Evonik currently assumes that adjusted EBITDA will probably be in thelower rather than the upper part of the €1.8 billion to €2.1 billion range.

Business performance in H1 2014
The overall global economic development was slightly weaker thanexpected in the first half of 2014. Although the sustained upward trend
in global growth continued, no additional momentum was generated in
the second quarter.
In the first six months of 2014, Group sales posted organic growth of 2percent. This was driven by higher volumes (5 percentage points), while
selling prices were lower (-3 percentage points). Taking into accountcurrency effects (-2 percentage points), sales amounted to €6,448
million, up from the prior-period figure of €6,421 million.
Adjusted EBITDA fell 16 percent to €936 million (H1 2013: €1,115million), mainly due to erosion of selling prices for some importantproducts. The adjusted EBITDA margin therefore declined from 17.4
percent to 14.5 percent.
The adjustments of minus €79 million relate, among other things, torestructuring expenses, impairment losses, mainly in connection with aproject in the Specialty Materials segment that was terminated following
a routine review of investment projects, and the at-equity carrying
amount of STEAG. The prior-year figure of minus €93 million mainlycomprised income, expenses and impairment losses in connection withthe shutdown of production plants in the Resource Efficiency andSpecialty Materials segments.

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Income before income taxes, continuing operations was 29 percent
lower at €424 million (H1 2013: €601 million). Income after taxes,
discontinued operations totaled €21 million. It mainly related to thelithium-ion business and resulted principally from revaluation inconnection with the sale of the shares in Li-Tec Battery and Deutsche
Accumotive to Daimler AG.
Overall, the Group's net income dropped 37 percent to €305 million in
the first six months of 2014 (H1 2013: €486 million).
Adjusted net income, which reflects the operating performance of thecontinuing operations, declined by 28 percent to €361 million (H1 2013:€499 million). Adjusted earnings per share therefore decreased from€1.07 to €0.77.
The cash flow from operating activities, continuing operations increasedby €111 million to €303 million in the first six months of 2014, mainly
due to a considerably lower increase in net working capital and lower
income tax payments. Including the cash flow from discontinued
operations, the cash flow from operating activities increased by €99
million to €308 million.
Capital expenditures increased 14 percent to €478 million (H1 2013:€419 million). 43 percent of capital expenditures were allocated to theConsumer, Health & Nutrition segment, 24 percent to the Specialty
Materials segment, and 21 percent to the Resource Efficiency segment.
To extend its leading market positions, Evonik started up new
production capacity in Asia. More than €100 million has been invested in
an integrated production complex for isophorone and isophorone
diamine in Shanghai (China). Isophorone chemicals increase the service
life of, for example, heavy-duty surfaces, and also facilitate
environment-friendly coating technologies. In Rayong (Thailand), anextended production plant for precipitated silica was brought intoservice. Growth in South-East Asia is driven principally by fuel-saving
tires and life-science applications. A new hydrogen peroxide plant withproduction capacity of 230,000 metric tons p.a. has been completed in
Jilin (China). The product will be supplied to a neighboring Chinese
partner, which will use it to produce propylene oxide at a newly erected
plant based on an innovative process developed by Evonik andThyssenKrupp Uhde.
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At the end of June 2014, net financial debt was €150 million, partly due
to ongoing investment spending and the dividend of €466 million forfiscal 2013, which was paid in May. At year-end 2013 Evonik had net
financial assets of €571 million.

Business performance in Q2 2014
Evonik registered strong demand for its products worldwide in thesecond quarter of 2014. The clear downward price trend observed inprevious quarters slowed perceptibly. Both sales and adjusted EBITDA
improved slightly compared to the first quarter of 2014, with all
segments contributing to the improvement in earnings.
Group sales grew 1 percent to €3,247 million in the second quarter of2014 (Q2 2013: €3,209 million). Evonik posted organic sales growth of
3 percent, driven by a considerable rise in volumes (5 percentage
points), which was countered by slight erosion of selling prices(-2 percentage points). Currency effects clipped sales by 2 percentage
points.
Adjusted EBITDA was €473 million, 7 percent below the year-backfigure of €509 million, mainly due to lower selling prices for some
important products. The adjusted EBITDA margin slipped from 15.9
percent to 14.6 percent.

Performance of the segments in H1 2014
Consumer, Health & NutritionHigher volumes, lower selling prices
Adjusted EBITDA below the high prior-period levelAdjusted EBITDA margin at a good level of 19.0 percent in H12014

The Consumer, Health & Nutrition segment produces specialty
chemicals, principally for applications in the consumer goods, animal
nutrition and healthcare sectors. It comprises the Consumer Specialties
and Health & Nutrition Business Units.
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In the first six months of 2014, this segment's sales dropped by 5
percent to €1,981 million (H1 2013: €2,076 million). Slight volume
growth was more than offset by declining selling prices and negative
currency effects. Demand for amino acids for animal nutrition continued
to rise but superabsorbents did not match the high volume sales
registered in the first half of the previous year. Adjusted EBITDA dropped
26 percent to €376 million (H1 2013: €508 million) as a result of lower
selling prices, especially for amino acids for animal nutrition, and startup expenses for new production capacity. Selling prices for the mostimportant amino acid, methionine, have stabilized since the start of theyear. The adjusted EBITDA margin was good at 19.0 percent (H1 2013:24.5 percent).

Resource EfficiencyFar higher demand and stable selling prices
Further improvement in adjusted EBITDA
Adjusted EBITDA margin rose to an excellent 23.2 percent in thefirst six months

The Resource Efficiency segment provides environment-friendly andenergy-efficient system solutions. It comprises the Inorganic Materials
and Coatings & Additives Business Units.
Sales grew 4 percent to €1,635 million in the first half of 2014 (H1 2013:€1,572 million). The strong volume growth was offset by a slight decline
in selling prices and negative currency effects. In particular, businesswith silicas and silanes remained very pleasing thanks to high demand
from the tire industry. The Coatings & Additives Business Unit was able
to lift volumes considerably and benefited from high demand from theautomotive and construction industries. Adjusted EBITDA increased 10percent to €380 million (H1 2013: €346 million), mainly because of therise in volumes. The adjusted EBITDA margin rose from 22.0 percent to23.2 percent.

Page 5 of 9

Specialty Materials

Far higher volumes, lower selling prices
Adjusted EBITDA down year-on-year
Adjusted EBITDA margin slipped to a weak 9.5 percent in the firstsix months

The heart of the Specialty Materials segment is the production ofpolymer materials and intermediates, mainly for the rubber and plastics
industries. It comprises the Performance Polymers and Advanced
Intermediates Business Units.
This segment's sales rose 2 percent to €2,350 million in the first six
months of 2014 (H1 2013: €2,299 million), driven by far higher volumes,
while sales growth was held back by lower selling prices, especially forbutadiene. A further increase in demand was registered for almost allC4 chemistry products, and for polyamide 12 products andmethacrylates. Adjusted EBITDA dropped 28 percent to €224 million (H12013: €310 million), mainly because of the reduction in selling prices.
The adjusted EBITDA margin dropped from 13.5 percent to 9.5 percent.

Services
The Services segment mainly provides services for the specialty
chemicals segments and the Corporate Center, but also serves thirdparties.
Sales grew 3 percent to €449 million in the first half of 2014 (H1 2013:€437 million). Adjusted EBITDA dropped 2 percent, from €107 million inthe first half of 2013 to €105 million in the first half of 2014.

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Outlook for 2014
Looking at the global economic background, even though thedevelopment in the first six months was somewhat weaker than had
been anticipated, Evonik still expects to see a slight upturn in global
growth in 2014 as a whole. That said, the stepwise recovery in the global
economy is affected by increasing structural challenges in the emerging
markets and the uncertainty arising from ongoing political disputes andmilitary conflicts. Despite the expected upturn in demand, the decline inproducer prices observed in 2013 will not be reversed in all endcustomer industries in 2014.
Overall, Evonik is confirming and specifying its outlook for 2014.
The company still anticipates that sales will rise slightly (2013: €12.7billion) and that adjusted EBITDA will be between €1.8 billion and€2.1 billion (2013: €2.0 billion).
The positive volume trend should continue, driven by the completion of
the first growth investments. On the price front, the company expects
the stabilization that has been evident so far to continue. In somebusinesses, a slightly positive price trend is visible. However, so far thisdoes not apply to the Specialty Materials segment, where price trends
have remained below the original expectations. If this should continue
for the remainder of this year, Evonik currently assumes that adjusted
EBITDA will probably be in the lower rather than the upper part of the€1.8 billion to €2.1 billion range.
Further relief on the cost front should come from the On Track 2.0
efficiency enhancement program. In addition, the company expects tosee the first positive effects of the Administration Excellence program,which was launched in fall 2013 to optimize administrative structures.
Downside factors could result from ramp-up expenses for growthinvestments, negative currency effects, and the rising price of crude oil.

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Evonik Group: Excerpt from the income statement(in € million)

Q2
2014

Q2
2013

Changein %H12014

H1
2013

Changein %

Sales

3,247

3,209

1

6,448

6,421

0

Adjusted EBITDA

473

509

-7

936

1,115-16

Adjusted EBIT

322

364-12638

828

-23

Adjustments-51-63-79-93

Net interest expense-59-68-135-134

Income before income taxes, continuing operations

212233

424

601

-133

-165

291

436

2142

312
7305
361

478
-8486
499

Income taxes

-70

-80

Income after taxes, continuing operations

142

153

Income after taxes, discontinued operations

-35

142
3139
174

188
-5
193
194

Income after taxes
Thereof attributable to non-controlling interests
Net income
Adjusted net income

-9-7
-24
-28
-10

-29
-33
-35
-37
-28

Prior-year figures restated

Segment performance
Adjusted EBITDA Q2Q2 2014
Q2 2013
Change€ million€ million
in %Q2 2014
€ million

Sales Q2
Q2 2013€ million

Changein %1,003

1,049-4

188

227-17

Resource Efficiency

830

801

4191

174

10

Specialty Materials

1,174

1,129

4112

128-13Services

220

210

554

53

2

Other operations

2020

0-72-73

1

3,247

3,209

1473

509

376
380
224
105-149
936

508
346
310
107-156
1,115

Consumer, Health & Nutrition

GroupConsumer, Health & Nutrition
Resource Efficiency
Specialty Materials
Services
Other operations
Group
Prior-year figures restated

Page 8 of 9

H1 2014€ million

Sales H1
H1 2013€ million

Changein %

1,981
1,635
2,35044933
6,448

2,076
1,572
2,299
437
37
6,421

-5
42
3-11
0-7
Adjusted EBITDA H1H1 2014
H1 2013
Change€ million€ million
in %-26
10-28-2
4-16

Employees by segment
Consumer, Health & Nutrition
Resource Efficiency
Specialty Materials
Services
Other operations
Continuing operations
Discontinued operations
Group

June 30, 2014
7,059
5,984
6,333
12,185
1,421
32,982
186
33,168December 31, 2013
7,150
5,854
6,268
12,192
1,531
32,995655
33,650Company information
Evonik, the creative industrial group from Germany, is one of the world leadersin specialty chemicals. Profitable growth and a sustained increase in the value ofthe company form the heart of Evonik’s corporate strategy. Its activities focus on
the key megatrends health, nutrition, resource efficiency and globalization.
Evonik benefits specifically from its innovative prowess and integrated
technology platforms.
Evonik is active in over 100 countries around the world. In fiscal 2013 more than
33,500 employees generated sales of around €12.7 billion and an operating
profit (adjusted EBITDA) of about €2.0 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 orstatements 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 toupdate the forecasts, expectations or statements contained in this release.

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