Annual Report 2016DEENCN


Technical terms

3D printing

In 3D printing, three-dimensional objects are manufactured on the basis of a digital blueprint. The material is applied in layers on a base surface to create a geometric structure. Evonik is one of the world’s leading producers of high-performance materials for 3D printing, and offers polymers and additives for a variety of 3D printing processes.

Accident frequency (occupational safety indicator)

Number of accidents involving Evonik employees and contractors’ employees under Evonik's direct supervision per 1 million working hours.


Evonik produces alkoxides, which are used as catalysts for efficient high-yield production of biodiesel. Using Evonik’s catalysts, biodiesel can be manufactured in a water-free process. As a result, fewer unwanted by-products are generated, leading to less contamination, so they facilitate the production of biodiesel.

Amino acids

Amino acids are building blocks for proteins that are used in animal nutrition. They are used to ensure that the amino acid content of animal feed is optimally aligned to requirements. As a result, livestock needs less feed. That also reduces excretion of nitrogen and undigested nutrients, which improves the carbon footprint of livestock farming and reduces overfertilization of the soil. Evonik manufactures and markets all five major essential amino acids for animal nutrition, i.e. DL-methionine (MetAMINO®), L-lysine (Biolys®), L-threonine (ThreAMINO®), L-tryptophan (TrypAMINO ®) and L-valine (ValAMINO®). Evonik also produces amino acids and their derivatives in pharmaceutical quality for use in infusion solutions for parenteral nutrition, as starting products for animal cell cultures, and in the manufacture of active ingredients.

C4 chemistry

C4 crack is a by-product of crude oil refining. It is mainly produced in a steam cracker when naphtha is split into
ethylene and propylene. After isolation, Evonik processes the Chydrocarbons and places them on the market, for example, as butadiene for tires and butene-1 for the plastics industry. Isobutene is processed into methyl tertiary butyl ether (MTBE), which is used as an anti-knock agent in fuel. In further processing steps, it manufactures highchair alcohols and plasticizers for flexible PVC. Evonik’s integrated C4 technology platform ensures excellent product yields. All hydrocarbons contained in C4 crack are processed cost-effectively.

Carbon Disclosure Project (CDP)

The Carbon Disclosure Project (CDP) is a non-profit organization and is currently the world’s largest and most important initiative by the financial sector on climate change. It is currently supported by more than 800 institutional investors with total assets under management of over US$ 100 trillion. Companies report data and information on CO2  emissions, climate risks and reduction targets and strategies to the CDP on a voluntary basis once a year. Investors use the data to derive a climate risk profile for companies, which they then use in their investment decisions.


Composites are composed of at least two different materials, for example a matrix material reinforced with fibers. By combining the properties of the materials carefully, it is possible to produce components that are very light yet extremely tough.


Evonik defines diversity as a balanced employee structure, not just in terms of gender, but also in relation to specialist areas, experience of different organizational units and functional areas, a broad age range and various nationalities, in other words, diversity across the board.

Greenhouse Gas Protocol (GHG Protocol)

The Greenhouse Gas Protocol is the most widespread voluntary international standard for calculating and compiling data on greenhouse gas emissions from industry. It was developed by the World Business Council for Sustainable Development and the World Resources Institute.

High-performance polymers

Evonik is a specialist for high-performance polymers. These have particularly high strength, making them a welcome alternative to metals in many fields, for example, in lightweight structures, medical implants and industrial applications. Depending on where they are used, such materials have to withstand high temperatures, aggressive chemicals and significant mechanical strain.

Hydrogen peroxide

Hydrogen is one of the cleanest and most versatile chemicals. Because of its positive properties it is used in a wide range of applications, from environment-friendly bleaching agents in the pulp and textile industry to etching agents in the electronic industry, active pharmaceutical ingredients and cosmetic applications, sterilization and disinfection agents in food processing as well as oxidizing agents in chemical and pharmaceutical syntheses. It is also used in the innovative hydrogen peroxide-to-propylene oxide (HPPO) process developed by Evonik and ThyssenKrupp Industrial Solutions for the direct chemical synthesis of propylene oxide, an important precursor for polyurethanes, and, for example, in the production of caprolactam.

Incident frequency (plant safety indicator)

This indicator is based on the process safety performance indicator defined by the European Chemical Industry Council (Cefic). Analogously to the accident frequency indicator for occupational safety, it covers incidents involving the release of substances, fire or explosion, even if there is little or no damage. It is calculated from the number of incidents per 1 million working hours.

Integrated technology platforms

Integrated technology platforms allow efficient use of product streams and thus high added value by utilizing by-products from one production process as starting products for others. That saves resources, reduces CO2 emissions and leverages cost-efficiency. Examples of integrated technology platforms in the Evonik Group are isophorone and silicon.

Isophorone/isophorone diamine/isophorone diisocyanate

Isophorone is used as a solvent, for example in the paints and coatings industry. It is also used to produce the derivatives isophorone diamine and isophorone diisocyanate. Isophorone diamine is an important curing agent for epoxy resin systems, for example to strengthen rotor blades. Isophorone diisocyanate is used to produce light- and weather-resistant polyurethanes, for example, for coating instrument panels and other plastic components.


Monomers are low-molecular-weight, reactive molecules that can build polymers.

Oil additives

As a leading global supplier of oil additives, Evonik develops innovative technologies that improve the operative efficiency of engines, gears and hydraulic systems. Specific and customized improvements in the flow properties of lubricants over a wide temperature range play an important role. Depending on the application, Evonik markets these technologies as DRIVONTM, NUFLUXTM and DYNAVIS®.


Polyether ether ketones (PEEK) are partially crystalline high-performance polymers. In view of their exceptionally high mechanical, thermal and chemical properties, they are mainly used in functional components and assemblies in automotive engineering, aviation, electronics and medical products.


Abbreviation for polymethylmethacrylate. This is a colorless polymer (acrylic glass) that can be colored in a range of shades. Properties: high light transmittance, good moldability, exceptionally high weather resistance. Applications: automotive and aviation engineering, architecture, lighting, design, electronics and communications technology. Best- known brand: PLEXIGLAS®, which is marketed as ACRYLITE® in the Americas. Form supplied: thermoplastic molding compounds, cast or extruded semi-finished goods (sheet, film, tubes, rods).


Polyimides are mainly used in filter bags for high-temperature filtration in coal-fired power plants and waste incinerators, and in highly selective membranes for efficient gas separation.


Long-chain, short-chain or crosslinked molecules (macromolecules) produced by linking smaller molecules (monomers).


Probiotics are live bacteria that occur naturally in the intestinal tract. They provide a valuable service for humans and animals: Good bacteria aid digestion, stimulate the metabolism, prevent the growth of pathogens, and strengthen the immune system.


REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is the European chemicals regulation.

Responsible Care®

Responsible Care® is the chemical industry’s global initiative for a continuous improvement in health, safety and environmental performance. As well as observing statutory and other regulations, the industry cooperates with government agencies and advocacy groups on a wide range of voluntary initiatives.


Silanes are a group of chemical compounds, consisting of a silicon-based structure and up to four functional groups.

  • Organofunctional silanes have at least one functional hydrocarbon group and possibly another functional group. They are used in high-performance additives that improve the properties of inorganic particles, resins and polymers. For example, they enhance the bonding properties of adhesives, make plastics heat-resistant, and add flame-retardant properties to cables.
  • Sulfur-functional silanes have revolutionized the production of tires, where they are used in combination with silica to improve key properties such as rolling resistance and wet grip.
  • Chlorosilanes are key resources for the semiconductor and optical fiber industry.


Evonik manufactures both precipitated silica using a wet route and fumed silica which is produced by a flame process. Silica is also known as silicon dioxide. These ultra-fine particles are used in a wide range of applications, including the life sciences (pharmaceuticals and cosmetics), construction, adhesives and sealants, paints and coatings, furniture manufacture, electronics applications such as polishing computer chips and the production of toners for digital printing. They also play a key role in energy-saving tires with low rolling resistance (“green” tires).

Silica/silane system

Silica is used in combination with silanes to reinforce the tread of modern tires. The silica/silane system greatly reduces rolling resistance, resulting in fuel savings of up to 8 percent compared with conventional auto tires. It also improves grip on wet and wintry roads.

Structural foams

Structural foams are popular for lightweight construction because they are light and stable. ROHACELL® is the brand name for Evonik’s polymethacrylimide (PMI) structural foams, which have been used for many years in planes and helicopters. Now they are increasingly being used in sandwich structures in the automotive industry.


Crosslinked polymers that are insoluble in water and can absorb and store large quantities of aqueous liquid through a mechanism that causes them to swell and form hydro gels. The liquid is not released even under pressure. Consequently, these polymers are mainly used in diapers. Special forms of superabsorbents are used in agriculture to regulate the moisture in soil. They can absorb large quantities of water, and release it to the plants during dry periods.

UN Global Compact

The United Nations Global Compact is a strategic initiative for companies that undertake to align their business operations and strategies with ten universally recognized principles relating to human rights, labor, environmental protection and fighting corruption. Companies that join the Global Compact give an undertaking that they will report annually on their progress.

Vision 2050

The Vision 2050 of the World Business Council for Sustainable Development describes the pathway to achieving a sustainable world with around 9 billion people living well within the limits of the planet by 2050. Companies play a key role in this.

World-scale facility

A large-scale production facility. World-scale facilities are often more economical because fixed costs per metric ton decline as output increases.



Financial and economic terms

Adjusted EBIT

Earnings before financial result and taxes, after adjustments. Earnings indicator showing Evonik's operating earnings performance irrespective of the structure of its assets.

Adjusted EBITDA

Earnings before financial result, taxes, depreciation and amortization, after adjustments. Earnings indicator showing Evonik’s operating earnings performance irrespective of the structure of its assets and its investment profile. This is a cash flow-related indicator which is used in particular in the adjusted EBITDA margin to show the relationship to sales as a basis for comparison with competitors.


Evonik refers to the special items that are factored out when calculating the operational performance indicators adjusted EBITDA and adjusted EBIT as adjustments. They include restructuring, impairment losses/reversals of impairment losses, income and expenses in connection with the purchase/disposal of investments in companies, and other income and expense items that, due to their nature or amount, do not reflect the typical operating business.


Compliance refers to all activities to ensure that the conduct of the company, its governance bodies and its employees respect all applicable mandatory standards such as legal provisions, statutory provisions and prohibitions, in-house directives and voluntary undertakings entered into by Evonik. The basis for this understanding and the observance of these binding standards is set out in Evonik’s Code of Conduct.

Corporate governance

Corporate governance comprises all principles underlying the management and oversight of a company. As an expression of good and responsible management of the company, it is therefore a central element in a company’s management philosophy. The principles of corporate governance relate mainly to collaboration within the Executive Board and Supervisory Board and between these two boards and the shareholders, especially at Shareholders’ Meetings. They also relate to the company’s relationship with other people and organizations with which it has business dealings.


Abbreviation for contractual trust arrangement. This is a model used by Evonik to transfer some of its pension obligations to a trust established especially for this purpose: Evonik Pensionstreuhand e. V., Essen (Germany). The assets transferred to this trust secure employees' pensions.


Abbreviation for economic value added. Indicator used for value-oriented management of the Evonik Group. EVA® is calculated from the difference between adjusted EBIT and the cost of capital employed. If EVA® is positive, value is created.

Free cash flow

The free cash flow is a measure of the company’s internal financing capacity. It shows the cash that is available to pay dividends, make acquisitions and repay borrowing. The free cash flow is calculated from the cash flow from operating activities, continuing operations, less outflows for capital expenditures on intangible assets, property, plant and equipment.

Hedge accounting

This refers to accounting for hedging transactions and the associated hedged items as a single valuation unit. The purpose of hedge accounting is to synchronize the otherwise different periods in which the hedged item and hedge impact on earnings.


Hedging is the strategy used to offset the exposure of business transactions to risks such as changes in exchange rates, interest rates and raw material prices. The company enters into an additional transaction whose profile is exactly opposite to the profile of the hedge transaction. Derivative financial instruments such as forward contracts, swaps and options are used as hedging instruments.


Abbreviation for International Financial Reporting Standards. Since 2005 companies listed on stock exchanges in the European Union have been required to prepare consolidated financial statements in accordance with IFRS.


In the financial community, a rating is an assessment of the creditworthiness of a debtor. Ratings are generally awarded by specialized rating agencies. The probability of default is calculated on the basis of specific criteria and debtors are assigned to rating classes that are indicated by rating codes. Ratings are also awarded for corporate and government bonds. A rating indirectly affects the debtor’s business activity. Normally a better rating enables a debtor to obtain favorable terms for borrowing.


The return on capital employed is a measure of the profitability of capital employed. It is calculated by dividing adjusted EBIT by the average capital employed in the reporting period.


In a corporate context, the term stakeholders refers to all natural or legal persons with an interest in the development of an enterprise. Stakeholders range from owners and employees through customers and suppliers to the state, lenders and general public.

Swaps (currency swaps, interest rate swaps)

Derivative financial instruments used to hedge currency or interest rate risks by swapping cash flows. Currency swaps entail swapping payments in different currencies, while interest swaps comprise swapping fixed interest rates are variable rates.

Venture capital

Venture capital is risk capital that is made available to fund innovative concepts and ideas, generally at high-growth small and mid-sized enterprises. Through Evonik Venture Capital GmbH, Evonik aims to invest up to € 100 million in promising start-ups and leading specialized venture capital in the mid term. The regional focus is Europe, the USA and Asia.


Volatility is a measure of the fluctuation in the price of traded goods, e.g. shares, currencies, interest rates, in a given period. It expresses the standard deviation of relative changes in prices over a given period (e.g. a year). The term is often used to denote the fluctuation in prices or interest rates on entire markets.