Evonik Magazine 3/2007

13.09.2007 15:33:44 Uhr13.09.2007 15:33:44 Uhr

Magazine

Global Market

Evonik — Fit for the — Fit Evonik 2007 |

3 Evonik E_01_Titel_Evonik_NEU 1E_01_Titel_Evonik_NEU 1 Evonik Magazine 3|2007 EVONIK MAGAZINE 3/2007 EDITORIAL 3 PHOTOGRAPHY: CHRISTIAN SCHLÜTER PHOTOGRAPHY: Implementing the worldwide presentation of the new brand Evonik Industries AG: Markus Langer and Inken Ostermann

Dear readers, Evonik Industries AG, the new industrial group from Germany, has gotten off to a successful start and is already part of the German business landscape. The public response to the group’s new name, new color, and new logo has been very positive. The financial newspaper Handelsblatt praised the group’s “talent for reinventing itself” and concluded that “A star is born in Essen.” Die Welt made a short and snappy analysis: “It’s got potential.” The Frankfurter Allgemeine Zeitung called Chairman Dr. Werner Müller a “combative strategist,” and the mass daily Bild reported that he had won the day. Today we’d like to present you with the first issue of Evonik Magazine, in the corporate color Deep Purple and a new layout. On the following pages we’ll tell you a bit about the new industrial group: the story of its transformation and the strengths of its three Business Areas: Chemicals, Energy, and Real Estate. You’ll also be able to get a glimpse behind the scenes at the people who designed and staged the new brand, as well as enjoying a column by the marketing professor Klaus Brandmeyer, who explains how important a new company’s public image is to the process of generating brand awareness. The presentation of the new industrial group began with a spectacular advertising campaign featuring the question “Who would do that?” and the answer “We do.” A great deal of hard work and creativity went into that simple exchange, as you’ll find out on the following pages. Many people are making sure the new brand is well known on the world market and packs an emotional punch — particularly the new head of Corporate Marketing, Markus Langer, and the Public Relations Manager and Editor in Chief of our magazine, Inken Ostermann. The Chairman of the Management Board of Evonik, Dr. Werner Müller, regards the new name as merely the starting signal for the powerful launch of the Group and its glob- ally operating Business Areas. As he points out in an interview with the journalist Manfred Bissinger, “Ultimately, we’ll be making a name for ourselves through what we do. If our operations are good, it will be a good name; if they are bad, the new name won’t help us much.” (page 18). The powerhouse from the Ruhr region will do everything possible to quickly make the new name a synonym for success, innovative ideas, creative solutions, and straightforward operations. Evonik Magazine will keep you updated.

Pleasant reading! Evonik does! The editorial team of Evonik Magazine

33_Evonik_0307_EN_Evonik_0307_EN Abs1:3Abs1:3 220.09.20070.09.2007 15:49:4915:49:49 UhrUhr 24 CHEMICALS BUSINESS AREA 32 ENERGY BUSINESS AREA

40 REAL ESTATE BUSINESS AREA 48 A STRONG PERFORMANCE

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EDITORIAL MASTHEAD 3 A New Industrial Group Makes its Debut Publisher: Evonik Industries AG, Essen / Christian Kullmann, Rellinghauser SHAPING Str. 1–11, 45128 Essen. 6 The Creativity Group Editor in Chief: Inken Ostermann (responsible for New objectives, unconventional approaches, and a decisive strategy for the world’s most important markets — these editorial content). Coordination Evonik: are the hallmarks of the new industrial group from the Ruhr region Andreas Fröning. Art Direction: 12 Evonik and the Global Market Wolf Dammann. Final Editing (Head): Chemicals, Energy, Real Estate — the new global player from Essen is active worldwide on these markets, which offer Kurt Breme. outstanding opportunities for growth and profit Managing Editors: Frauke Meyer, Ulrich Raschke. Picture Desk: 18 The Group’s Architect Ulrich Thiessen. Documentation: The blueprint for the new Group and the plans for a socially responsible end to hard coal mining in Germany Kerstin Weber-Rajab, by 2018 — neither would have been possible without Group Chairman Dr. Werner Müller. Manfred Bissinger spoke Tilman Baucken; Hamburg. with Dr. Müller about the past and the future Design: Teresa Nunes (Head), Anja Giese, Silke Möller, Nadine Weiler / Redaktion 4. 22 A Foundation for Success Copy Desk: Wilm Steinhäuser. Evonik has three Business Areas — Chemicals, Energy, and Real Estate. Creativity, surprising solutions, and decisive, Translation: straightforward dealings characterize everyday activities at Evonik TransForm, Cologne. Publisher and address: HOFFMANN UND CAMPE VERLAG 24 Inspiring Capital Markets’ Investors GmbH, a GANSKE VERLAGSGRUPPE company, A world leader in specialty chemicals, the Chemicals Business Area’s pioneering activities are inspiring the dreams Harvestehuder Weg 42, of capital markets’ investors 20149 Hamburg, Telephone +49 (0)40 / 441 88-457, Fax +49 (0)40 / 441 88-236, e-mail: [email protected]. 32 Fuel for Growth Management: Manfred Bissinger, The Energy Business Area is a player on a rapidly growing market. As a technological leader specializing in modern, Dr. Kai Laakmann, hard coal-fired power plants, it is superbly equipped to retrofit facilities and build new plants all over the world. Dr. Andreas Siefke. Its expertise in “green energy” is a key to realizing new climate targets Production: Claude Hellweg (Head), Oliver Lupp. Lithography: PX2, Hamburg. 40 Long-Term Profitability Printing: Neef+Stumme, Wittingen. Copyright: In Germany today, the Real Estate Business Area is setting the standards when it comes to the modernization and © 2007 by Evonik Industries AG, management of residential properties. Satisfied tenants are the best guarantee of long-term profitability Essen. Reprinting only with the permission of the publisher. The contents do not necessarily reflect the opinion of the publisher. 48 Evonik Does! Contact: Questions and suggestions on the A new company color, a new logo, and an extensive advertising campaign! Nothing was overlooked for the launch contents of the magazine: of the new Group. The road that led to the new brand is a story of success Telephone +49 (0)201 / 177-3831, Fax -2908, e-Mail: [email protected]. 58 The New Owner — the RAG-Stiftung Questions about orders or subscriptions: The RAG-Stiftung will lead the new Group onto the capital markets and play a key role in the cessation of Telephone +49 (0)40 / 688 79-139, hard coal mining in Germany by 2018 Fax -199, e-mail: [email protected] The designations PLEXIGLAS®, EUDRAGIT®, EUDRAMODE®, LUGLAS®, ROHACELL®, and 62 A Good Name Opens Every Door VISCOPLEX® are registered trade marks of Evonik Industries Aktiengesellschaft or its subsidiaries.

PHOTOGRAPHY: CORBIS, EVONIK INDUSTRIES AG, KNSK/ANATOL KOTTE, CATRIN MORITZ CATRIN KOTTE, KNSK/ANATOL INDUSTRIES AG, EVONIK CORBIS, PHOTOGRAPHY: Marketing expert Professor Klaus Brandmeyer discusses the impact of a strong brand name All trademarks in the text are set in capitals

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Dr. Werner Müller is Chairman of the Management Board of Evonik Industries AG. He is the originator of the plans for transforming the RAG Group and

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Evonik Is Counting on “Growth Sprinters” Evonik Industries AG, the new industrial group from the Ruhr region, is setting clear return targets in its bid for success on the stock market — and spending €300 million annually on research and development

TEXT THEO DENNE achieves 20 percent of its revenues with PHOTOGRAPHY CHRISTIAN SCHLÜTER products and technologies that are less than five years old. The Group has taken out SOON AFTER BECOMING the Chair- more than 20,000 patents, and it spends man of RAG four years ago, Dr. Werner Mül- more than €300 million annually on re- ler announced — first to the Group’s employ- search and development. ees and then to the general public — that he Evonik has clearly found the right recipe intended to make the Group “a conventional for success, and that’s been confirmed by the company.” This plan has now become a re- operating developments of recent years. ality. Evonik Industries AG, the new indus- The figures for the first half-year impres- trial group from the Ruhr region, is taking sively demonstrate that the Group has cre- up its work and is ready for the capital mar- ated the basis for its upcoming IPO. Its rev- ket. With revenues of more than €15 billion enues increased by three percent to €7.565 and almost 43,000 employees all over the billion, and its earnings before interest and world, it’s the new powerhouse in the Ruhr taxes (EBIT) rose by a spectacular 26 per- region, combining a solid regional footing cent from January to June to almost €788 with global operations in the three Business million (2006: €625 million). The Group’s Areas Chemicals, Energy, and Real Estate. total surplus is now more than €715 million, But Müller wouldn’t be Müller if he were compared to only €302 million last year. satisfied with that. He’s setting the bar high “The first half of 2007 has been excellent. indeed: “Our goal is to become one of the Our course toward the capital market is the most creative industry groups in the world,” right one for us,” says Müller. However, he’s he says. Thanks to its Real Estate Business keeping various strategic options open. Area, which is fairly independent of overall economic development, and its stable en- ON THE ROAD TO THE ergy business, Evonik has substantial clout CAPITAL MARKET as well as dependable revenues. And its The charter of the RAG-Stiftung (founda- Chemicals Business Area offers it promising tion), which is the new owner of the Evonik potential growth. “The new industrial Group, includes a legally binding require- group’s innovative power is phenomenal,” ment to go public. However, this does not Müller reports with enthusiasm. For exam- exclude the possibility of increasing the pro- establishing the RAG-Stiftung ple, in its Chemicals Business Area, Evonik ceeds expected from the IPO by selling stock >

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New and intelligent products for the future-oriented markets of the global economy

> packages to a major investor. This move is “team” has helped to implement the trans- covered by the original intention of the formation process. RAG-Stiftung’s founders, because it would To sum up, over the past three years RAG make Evonik even more attractive to inves- has carried out the biggest disinvestment tors before the IPO. Consequently, Evonik program of its corporate history, selling and the foundation’s board are considering more than 480 companies with over €8 bil- the possibility of selling the first tranche of lion in revenues and 35,000 employees. the stock issue to an investor. “Nothing has What’s more, this process has been undis- been decided as yet,” says Müller. His aim is puted and socially responsible. Today, the to steer a pragmatic course, he adds: “What- subgroups Rütgers, RAG Coal International ever helps Evonik and brings substantial and RAG Saarberg no longer exist. On the proceeds into the foundation’s coffers will other hand, Degussa has been completely be good.” In order to be ready for operation taken over in record time, the administra- soon, the foundation also needs to beef up tion within the Group has been restruc- its budget, and that might be accomplished tured, and the Group’s debts have been re- faster by selling shares to an investor than by duced by €1 billion to €4.6 billion. an IPO. But in order to prevent speculation, “The Group’s portfolio of white busi- Müller makes one point absolutely clear: nesses is now largely free of problems,” says “There have been no contacts or talks what- Müller with satisfaction. Now Evonik will be soever with Gazprom.” able to exploit its opportunities for growth, he adds. Müller sees these opportunities pri- SHARING SUCCESS WITH marily in what he calls “megatrend Number THE EMPLOYEES 1” — more effective energy utilization. All By entering the capital market, Evonik aims over the world, companies are offering to give its employees the opportunity to par- products, services, and solutions that help ticipate in the Group’s success. The manag- to save energy and reduce emissions of the ers, for example, will receive long-term per- greenhouse gas CO2. Evonik is preparing to formance fees that are closely linked with conquer the markets of the future with new the Group’s success. According to Müller, and intelligent first-class products. the employees’ expertise and dedication What motivates Evonik is its sense of re-

will be the key criteria of their personal suc- sponsibility, as a major industrial group, for : JOCHEN BALKE/SIRIUS PHOTOGRAPHY cess. He appreciates the way the Group’s people’s living conditions. But Müller also > A new symbol for Essen: Evonik Industries AG put

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up posters to announce its new name and message on the façade of its headquarters building: Power to create

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Combining corporate competitiveness with concern for a high quality of life

The Management Board of Evonik Industries AG

Chairman of the Management Board Chief Financial Management Board Management Board Management Board Management Board Management Board Human Resources Ofﬁ cer Real Estate Chemicals Chemicals Energy Dr. Werner Müller Ulrich Weber Heinz-Joachim Wagner Dr. Peter Schörner Dr. Klaus Engel Dr. Alfred Oberholz Dr. Alfred Tacke

• Corporate • Human Resources, • Finances • Real Estate • Chemicals • Chemicals • Energy Development Policy and • Accounting • Controlling Codetermination • Communications/ • Tax Accounting • IT Executive Affairs • Skills and • Mergers & • Shared Service Performance • Basic Acquisitions Center Issues Management • Investor • ESH: Environment, • Group Relations Revision Safety, and Health Management • Legal Affairs

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> stresses that the company is determined to ical leadership in the construction and op- though very many of the “growth sprinters” earn healthy profits worldwide with “top eration of coal-fired power plants. But it’s are involved in the “green” markets of the quality made by Evonik.” Müller, who stud- less well known that Evonik also has gained future, Müller candidly admits that “Evonik ied languages, terms this a win-win situa- tremendous expertise in energy production is not a ‘green’ industrial group.” As with all tion that combines economic competitive- from renewable sources. Here too, creativ- industrial production, a whole series of the ness with the preservation of a high quality ity and specialization are the keys to success. company’s production processes affect the of life across the globe. Evonik is Germany’s leading company for environment, and that will remain the case These are high expectations — but Evonik electricity production from mine gas, bio- even if Evonik makes great efforts to reduce can already produce many examples that gas, and geothermal energy. What’s more, the amount of pollution. One of these efforts support its claim to be a creative company in the major coal-producing countries is the substitution of hydrogen peroxide for that is setting new benchmarks as a special- China, Russia, Ukraine, and Poland, there chlorine in paper production, Müller adds. ist and a technological leader. are many possibilities for utilizing mine gas to produce electricity. Renewable energy EVONIK PRODUCTION ENHANCING A LEADING sources are generally regarded as a very PLANTS IN CHINA POSITION promising area of future business, but for Evonik’s Chairman believes that the markets Solar silicon is a good example. Evonik is al- Evonik they are already very profitable to- with the biggest growth potential are in ready producing trichlorosilane and mono- day. The EBITDA margin is over 30 percent Asia, eastern Europe, and Latin America. In silane, the elementary and indispensable — in other words, for every euro of revenue, Asia, the biggest potential today is in China, fabricated materials of solar silicon, the most 30 cents flow into the company’s coffers be- so this is where the Group aims to set up its important raw material for the solar indus- fore interest, taxes, depreciation, and amor- own production plants. The cornerstone has try. And its high returns show that it’s pro- tization are deducted. It’s obvious that already been laid. In Shanghai, the company ducing them with tremendous success. In Evonik profitably uses its expertise in the is investing €250 million in the construc- the middle term, Evonik intends to invest generation of electricity from hard coal, and tion of a new integrated production facility hundreds of millions of euros in order to ex- that it aims to greatly expand these opera- for the manufacture of specialized plastics. ploit its competitive advantage and improve tions abroad in particular. That’s the company’s second-largest indi- on its outstanding position in this market. Evonik is also one of the major players in vidual investment to date in the Chemicals Another example is plastic materials the real estate business. It owns more than Business Area. Without these plastics, it used as metal substitutes. They make air- 60,000 residential units and a 50 percent would not be able to produce PLEXIGLAS craft, vehicles, and ships lighter, make them share in the property management company for flatscreens or cellphone displays — in cheaper to produce, and reduce their fuel Treuhandstelle für Bergmannswohnstätten other words, for products that are currently consumption. In some areas, Evonik is the (THS), which controls 77,000 residential being sold in tremendous numbers on the world’s only supplier of such high-perfor- units. Here too, it is developing solutions to market. China is a good example of the other mance plastics. Revenues at ROHACELL increase energy efficiency. These include projects abroad. For 2007 alone, a total of have increased by almost 50 percent, so it’s ultramodern new constructions that are €1.3 billion will be spent on expanding the no wonder that the capacity of its plant in supplied with energy from photovoltaics Group’s presence all over the world. Mobile, Alabama, is being expanded. Yet an- and geothermal energy sources. Apropos budgets and investments, other example is Evonik’s “green tires.” Evonik is not yet listed on the stock ex- Evonik has products and technologies that FOCUSING ON change. Nonetheless, the Group is already reduce rolling resistance by up to 40 percent “GREEN GROWTH” complying with the conventional require- by comparison to conventional tires, saving These examples show that Evonik is bank- ments of the capital market. In other words, up to eight percent of fuel and thus easing ing not only on the enhancement of its exit is investing only in businesses that stand the burden on the environment. isting business operations but also on out because of their growth and attractive Other examples include catalysts for “green” growth. Müller believes that the profit margins. Uniform Group-wide crite- transforming rapeseed oil into biodiesel, as Group is still only beginning to explore the ria for these qualities have been defined. well as specialist ceramics for lithium-ion possibilities in this area, but that the outlook Funding is being provided only for invest- batteries for fuel-saving hybrid and electric for business success is excellent. He points ments that will yield minimum returns of 16 vehicles. The number of jobs in this area of out that there are “growth sprinters” within percent before taxes in the Chemicals Busi- production is expected to increase tenfold the company that are already bringing in ness Area, 10.5 percent in the Energy Busi- in the medium term to more than 1,000 — in revenues of €3 billion. For example, the ness Area, and 6.3 percent in the Real Estate an industry that seemed lost to Asian com- Chemicals Business Area’s earnings and re- Business Area. Müller has prescribed the petitors. “Our research successes will bring turn on capital in this area are significantly principle of “growth and pruning” — that is, these jobs back to Germany,” says Müller. higher than the industry average. That divesting all activities that cannot fulfill the In the energy sector, it’s a well-known alone, he is convinced, shows that the Group return requirements. “In this regard, there fact that Evonik has a tradition of technolog- is moving in the right direction. But even are no sacred cows” he concludes. <

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Excellent Prospects Worldwide for With its three Business Areas, Evonik Industries AG is active in markets that are expected to

Global chemical exports 2006 In billions of euros Shares in percent

Germany EU 25 Rest of the France world UK Italy Spain Netherlands Belgium Ireland Sweden Poland 55.3 44.7 Denmark Austria Finland Hungary Czech Republic Portugal 12.3 Slovenia Greece Slovakia Other European countries 0 20 40 60 80 100 120 Germany SOURCE: VERBAND DER CHEMISCHEN INDUSTRIE (VCI) VERBAND DER CHEMISCHEN SOURCE:

Growing chemicals consumption Chemicals revenues In billions of euros In billions of euros

EU 25, Germany, China World 3000 2004 2005 2010* 2015* 600 1900 2800 World 2600 1800 500 2400 1700 2200 EU 25 2000 400 1600 1800 1600 1500 300 1400 1400 1200 1000 200 1300 China 800 600 1200 100 400 Germany 1100 200 0 0 1000 Germany EU 25 USA Japan China India World 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 * Forecast SOURCE: DEUTSCHE BANK RESEARCH DEUTSCHE SOURCE: BANK RESEARCH DEUTSCHE SOURCE:

EE_12_17_Klapper-aus_Evonik_12_17_Klapper-aus_Evonik Abs2:12Abs2:12 119.09.20079.09.2007 13:23:0813:23:08 UhrUhr EU SWEDEN RUSSIA BELARUS RUSSIA UK CANADA GDP $14,563 billion DENMARK GDP $37 billion GDP $979 billion

GDP $1,269 billion Per capita GDP $29,540 NL Per capita GDP $3,808 Per capita GDP $6,856 B BELARUS POLAND CANADA D Per capita GDP $38,952 Population 493 million Population 10 million Population 143 million CZECH REPUBLIC SLOVAKIA Population 33 million UKRAINE A SWITZERLAND FRANCE ROMANIA CROATIA CHINA CH HUNGARY USA USA GDP $377 billion CROATIA GDP $43 billion GDP $2,630 billion GDP $13,245 billion BULGARIA Global Group Per capita GDP $51.771 PORTUGAL Per capita GDP $9,558 $ Per capita GDP $2,002 Per capita GDP $44,191 SPAIN ITALY TURKEY Population 7 million Population 4 million Population1,314 million SOUTH KOREA from the Population 300 million North Rhine- TUNISIA Westphalia MEXICO IRAN JAPAN ISRAEL CHINA Ruhr Region GDP $840 billion MEXICO TUNISIA TAIWAN Evonik Industries AG is a new, modern Per capita GDP $8,066 GDP $31 billion EGYPT group from Germany that is at home UKRAINE PHILIPPINES Population 104 million on all of the world's important markets. Per capita GDP $2,982 INDIA Germany GDP $106 billion HONG KONG GDP $117 billion Population 10 million In more than 100 countries, 42,500 Per capita GDP $2,274 Per capita GDP $1,345 THAILAND employees earn revenues of €14.8 billion. Population 47 million Population 87 million TURKEY The three Business Areas of Chemicals, Energy and Real Estate are active in NIGERIA GDP $392 billion PHILIPPINES NRW IRAN INDIA INDONESIA growth markets with excellent prospects Per capita GDP $5,408 GDP $213 billion GDP $887 billion GDP $365 billion for the future COLUMBIA Population 73 million $1,640 Per capita GDP $3,046 Per capita GDP $797 SINGAPORE Per capita GDP Population 70 million Population1,113 million Population 222 million COLUMBIA NIGERIA ISRAEL

GDP $135 billion GDP $115 billion GDP $140 billion HONG KONG SOUTH KOREA Per capita GDP $2,888 Per capita GDP $770 Per capita GDP $20,400 Saar- GDP $190 billion GDP $888 billion land INDONESIA Population 47 million Population 150 million Population 7 million BRAZIL Per capita GDP $27,466 Per capita GDP $18,392

Population 7 million Population 48 million BRAZIL SOUTH AFRICA EGYPT

GDP $1,067 billion GDP $255 billion GDP $107 billion Saarland TAIWAN JAPAN Per capita GDP $5,717 Per capita GDP $5,384 Per capita GDP $1,489 GDP $356 billion GDP $4,368 billion Population 187 million Population 47 million Population 72 million Per capita GDP $15,482 Per capita GDP $34,188 AUSTRALIA AUSTRALIA NEW ZEALAND Population 23 million Population 128 million ARGENTINA GDP $755 billion GDP $103 billion ARGENTINA GDP $213 billion Per capita GDP $36,553 Per capita GDP $24,943 Legend SOUTH AFRICA SINGAPORE THAILAND Per capita GDP $5,458 Population 21 million Population 4 million GDP $132 billion GDP $206 billion Countries with Group locations Population 39 million Per capita GDP $29,917 Per capita GDP $3,137 Chemicals location NEW Energy location Population 4 million Population 66 million ZEALAND Real Estate location GDP = gross domestic product, all figures: Status end 2006 ILLUSTRATION: DIETER DUNEKA/SOURCES: IWF, EUROSTAT, COMPANY STATEMENTS/PHOTOGRAPHY: MAURITIUS IMAGES MAURITIUS STATEMENTS/PHOTOGRAPHY: COMPANY EUROSTAT, IWF, DIETER DUNEKA/SOURCES: ILLUSTRATION:

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Chemicals, Energy and Real Estate develop in spectacular fashion over the coming years

Global energy consumption Energy sources: global consumption In septillion Btu* In septillion Btu*

History Forecast History Forecast 800 250

200 Oil** 600

150 Coal 400

100 Natural gas

200 50 Renewables

Nuclear 0 0 1980 1985 1990 1995 2000 2004 2010 2015 2020 2025 2030 1980 1995 2004 2015 2030 *1 Btu (British thermal unit) = 1.055 kilojoules (kJ) *1 Btu (British thermal unit) = 1.055 kilojoules (kJ) **and liquid fuels from other sources SOURCE: WORLD ENERGY OUTLOOK 2007 OUTLOOK ENERGY WORLD SOURCE: 2007 OUTLOOK ENERGY WORLD SOURCE:

Increasing number of households The future is urban

Number of house- Proportion of households of World population in billions holds in millions over-65s in percent In the country In the city History Forecast 42 50 History Forecast 9

8 40 40 7

6 38 30 5

36 20 4

34 10 2

1 32 0 1990 2000 2010 2020 2030 2040 2050 0 The number of households in Germany will increase over the next 20 years, 1950 1970 1990 2010 2030 and the need for modern apartments will continue to grow. The average size of Worldwide, more and more people are moving from the country to the city. seniors’ households is smaller than that of family households This trend will also determine the real estate market of the future in Germany SOURCE: DEUTSCHE BANK RESEARCH DEUTSCHE SOURCE: UN SOURCE:

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“That Was a Heavy Blow.” Evonik Industries AG Chairman Dr. Werner Müller talks about the Group’s parting from the coal business and the new company’s opportunities in the growth markets of the future

After four years of restructuring work as the head of a “conventional company,” Evonik Chairman Dr. Werner Müller talks to Manfred Bissinger about the future PHOTOGRAPHY: XXXXX PHOTOGRAPHY:

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INTERVIEW MANFRED BISSINGER prosper for the benefit of the people PHOTOGRAPHY CHRISTIAN SCHLÜTER “There was no who live there. EVONIK MAGAZINE You have sub- EVONIK MAGAZINE When you started out four years ago reasonable mitted the Group to an unparalleled in Essen, your goal was to transform RAG into a conventional restructuring process and parted from company that was fit for the stock exchange. This goal has alternative to the 480 companies that bring in approxi- been achieved. Are you satisfied? mately €8 billion in revenues — with- DR. WERNER MÜLLER It’s true that many people initially concept we out becoming involved in any pub- considered my goal utopian. But to now spend time looking lic conflicts. There were no occupied back with satisfaction isn’t the best way forward. had developed” buildings, no strikes, and no demon- EVONIK MAGAZINE Why do you say that? strations. How did you do it? MÜLLER We’ve done a fairly good job so far — but we now MÜLLER There’s no doubt that it have to focus on the future. was the result of a reasonable, objec- EVONIK MAGAZINE It all began with your idea that RAG’s tive, and hands-on codetermination energy, chemicals and real estate businesses should be sep- process. In such a process, there’s al- arated from the mining operations and the company should ways trouble if you don’t inform the go public. The proceeds were to flow into a foundation that would support employees and ask them to share the responsibility, from the very start. the future of mining and finance the Group’s inherited liabilities with un- We arrived at all the decisions amicably within the committees. limited duration. This was a brilliant plan that should have received more EVONIK MAGAZINE That achievement wasn’t properly appreciated. support from the very start. Why did it take four years to implement it? MÜLLER The important thing is that our measures never received any neg- MÜLLER During the first year we initially had to finance the purchase of ative press coverage. Our employees and the IG BCE leadership supported the first tranche of Degussa by means of a loan. And we had to consider the process and even considered the eventual termination of our coal min- what kind of portfolio we would need in order to be fit for the future. For ing operations. We could really not take that for granted. example, before I came on board, the Supervisory Board had decided to EVONIK MAGAZINE Was that the biggest obstacle? sell STEAG. Subsequently that decision was canceled and the concept of a MÜLLER It was a very difficult decision, and we’ll be feeling the repercus- conventional company was developed. We were ready to start the detailed sions in our industrial policy for a long time to come. Just look at the way preparations in the fall of 2004, and from then on we made real progress. coal prices have developed on the world market in recent months. Re- Of course there were obstacles. Unexpectedly, a national parliamentary gardless of that, 150 years of mining history in the Ruhr region have now election was called, a grand coalition was formed, and negotiations began come to an end. That was a heavy blow for all of us. all over again. That lost us months of progress. And let’s not forget that the EVONIK MAGAZINE Germany’s economic rebound after World War II talks with some of the owners didn’t always run smoothly. would have been unthinkable without the coal industry. EVONIK MAGAZINE You mentioned “some obstacles.” Isn’t that an under- MÜLLER Without coal there would have been no industrialization. It was statement? Didn’t some people intentionally set up stumbling blocks. the engine that drove the history of industry after 1800. MÜLLER Considering that we had to come up with a solution that satisfied EVONIK MAGAZINE The Coal Act contains a clause ensuring that the two differently constituted state governments, a newly formed national process will be reviewed in 2012. Can the mine closures still be reversed government, four self-confident major shareholders, the IG BCE labor at that point? union, and 100,000 employees, the process has run fairly smoothly. MÜLLER The procedure for applying this review clause has been roughly EVONIK MAGAZINE Did you ever find yourself wishing for a tank that defined. It will be based on neutral assessments. If coal prices continue to would smash down the barricades blocking your plans? increase at the present rate, I’ll be very curious to hear the experts’ fore- MÜLLER There was no reasonable alternative to the concept we had de- casts. I expect that by 2012 even a country with such vast coal deposits as veloped. It was self-supporting and self-explanatory. That was our tank. China will be a net importer of coal. I also assume that India, with its pop- EVONIK MAGAZINE And yet politicians repeatedly tried to throw the ulation of 1.2 billion, will develop its economy at its present pace and that concept into question — for example, by floating the idea of dividing up it will operate coal-burning power stations and need steel as the basis of the Group and selling it off in pieces. That would have been the end of its industrial progress. Let’s wait and see. But let’s ignore the role of Ger- the RAG Group. many for a moment. It’s certain that in global terms coal will remain one of MÜLLER That’s right. But the initial decision would have had to be made the most important raw materials for the next 100 to 200 years. within the Group; after all, the company is subject to the codetermination EVONIK MAGAZINE You’ve accomplished a tremendous amount in the regulations for the mining industry. I can’t imagine our Supervisory Board four years of restructuring at RAG, and you still have much to do. You origi- agreeing to such a proposal. Then too, it would have had to be convincingly nally considered heading the foundation yourself so that you could success- presented by the politicians. It’s hard to imagine a politician who could have fully complete your plan. But things have now turned out differently. stood in front of our headquarters building saying, “All right, now every- MÜLLER If I hadn’t wanted the position, I wouldn’t have applied for it. The thing’s going to be split up and the individual pieces will be thrown onto foundation’s job is to make sure the mining industry is led into the future in the capital market.” That would have been contrary to our promise to cre- the way the politicians have promised. And because politicians are some- ate a new, profitable corporate group for the Ruhr region and to make it times fickle, I felt I had an obligation to the miners. I wanted to keep my >

119_Evonik_0307_EN9_Evonik_0307_EN Abs2:19Abs2:19 119.09.20079.09.2007 13:46:3013:46:30 UhrUhr 20SHAPING INTERVIEW MÜLLER EVONIK MAGAZINE 3/2007

Not looking back in anger: Dr. Werner Müller got his plans for the new Evonik Group accepted in spite of strong resistance. He’s grateful for the support he received from the Supervisory Board and the Group’s employees

> word. Apart from that, I believe the foundation will have a positive effect I initially focused on the large complexes — the real estate business, power on the Ruhr region. It now has a chairman who is a businessman rather generation, and chemicals. After we had identified these areas we contin- than a politician. That’s an excellent starting point. ued to make them leaner. For instance, we sold off our commercial real EVONIK MAGAZINE How well do you know Mr. Bonse-Geuking? estate development and facility management operations. The payoff is MÜLLER I’ve been aware of his excellent qualities ever since we worked that today each one of these three pillars is making fine profits, enhanc- together at VEBA. And when I was the Minister of Economics I dealt with ing the value of the Group as a whole, and delivering substantial earnings him frequently. So I know that the foundation is in good hands with him as that boost the dividends of our stock. chairman. I had the opportunity to recommend him to the Chancellor, and EVONIK MAGAZINE But aren’t you worried that people will argue that I’m very grateful to Angela Merkel for getting him appointed. conglomerates of this kind won’t attract investors? EVONIK MAGAZINE From an outsider’s point of view, it looks as though MÜLLER I’m not worried about people who point out that our three pil- you’ve been through some difficult years recently. Has time healed all the lars have little in common by nature. The critics’ attitude toward conglom- wounds? erates — which is an odd term to begin with — is already changing. For MÜLLER Well, not everything went smoothly, especially if we’re talking my part, I’ve been observing that German industrial companies with a about the start of 2007. But in retrospect there were no points where I was single focus can experience market growth only in relative terms, so they really vulnerable, so I was always optimistic. Then too, I’m grateful to the are once again looking around for other business opportunities. After all, Supervisory Board and especially to companies want to go on growing. Thanks to our three busi- our employees for the strong support ness areas, we are well positioned in this regard. Our busi- they gave me so often. ness areas are diverse, but each of them has outstanding fu- EVONIK MAGAZINE The group ture prospects. that’s now getting off to a new start EVONIK MAGAZINE In other words, you’re refuting the under a new name stands on three idea that conglomerates are not attractive to investors. pillars: chemicals, energy, and real “We have MÜLLER Just take a look at the major German power com- estate. Why these three? panies. All of them without exception have a single focus. MÜLLER When I started out we considerable As a result, they are practically forbidden by antitrust legis- were still operating in many ar- lation to buy up other companies, not only in Germany, but eas. We were tools wholesalers — opportunities also in the rest of Europe. In other words, they can invest in with two companies that competed power companies in Mongolia, for example, or they can con- against each other. We were also for growth sider investing in a completely different sector. However, in- building prefab houses and oper- vesting revenues in stock buybacks is not the right way for a ating cement plants to produce the in all three company to grow. components for them. We were EVONIK MAGAZINE Can you imagine Evonik Industries AG even building façades for high-rises. Business Areas” adding other pillars to the present three?

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EVONIK MAGAZINE Have private equity companies — the much-feared “locusts” — been knocking at your door? MÜLLER Yes, many of them. I don’t find my discussions with them to- tally uninteresting, because it confirms my feeling that we are running a sound enterprise. EVONIK MAGAZINE Which of the three Business Areas has the best future prospects, in your opinion? Chemicals, for example, is already the world market leader in some sectors. MÜLLER Silicon-based chemicals have a very promising future. But we’re also the world leader in the market for a product that’s urgently needed by paper producers. We could continue investing in this area. Another outstanding new development we have is explosion-proof electric batteries. We have outstanding C4 chemicals, and other great products besides. That’s why I said we’ve got outstanding prospects for internal growth in many areas, including our special developments in the cosmetics industry. We’ve got really good potential for successful business now and in the future. EVONIK MAGAZINE Are you worried about the very stringent future re-

strictions on CO2 emissions? MÜLLER Ultramodern coal-burning power plants are a future-oriented market, although many issues need resolving. But to answer your question, I’m committed to the future of the German economy, so I do worry. EVONIK MAGAZINE Will the Evonik Group stay in the Ruhr region? MÜLLER At the moment, I don’t think that’s going to happen. We still have MÜLLER I can’t say it will stay forever. But as long as I have a say in this great potential for growth in all three Business Areas. In the real estate sec- Group, our headquarters will remain in Essen. tor, we’ll double our property portfolio in the coming years. And the chem- EVONIK MAGAZINE What kind of cultural activities will Evonik icals area is ripe for expansion. That also goes for the energy sector, where support? our activities have scarcely interested the antitrust authorities. MÜLLER We have to rethink our sponsoring activities. We have supported EVONIK MAGAZINE Acquisitions would be one option. What do you cultural events to an unusual degree, out of our basic convictions and our think of cooperative projects? commitment to the Ruhr region — but also to remind people of our exis- MÜLLER That’s a possibility, as is the option of buying additional busi- tence. One of the basic issues in the increasingly critical public debate of nesses together with partners. But let me repeat: we have enough growth recent years about the coal industry has been the assumption that if coal potential of our own. Fortunately, our Chemicals Business Area is active mining disappears the Ruhrkohle company will also be closed down. But in areas where we expect world market demand to grow and where we the truth is that we stopped being the Ruhrkohle company a long time are spearheading progress. ago. When I started working here we had 100,000 employees, including EVONIK MAGAZINE Are you ruling out the possibility of bringing an- 40,000 miners and 60,000 people in the chemicals, energy, and real es- other major investor on board? tate sectors. However, we had to work hard to convince the public that we MÜLLER No, not at all. That decision is basically in the hands of the owner. are not just a coal producer but a major German industrial group. Obviously it will discuss such decisions with us ahead of time. EVONIK MAGAZINE You’ve certainly succeeded. EVONIK MAGAZINE Are you referring to the foundation? MÜLLER Yes, the results have made our efforts worthwhile. We have MÜLLER: The discussions we’ve had in recent weeks have shown that we made such a lasting impression on public awareness that, for example, are very much in agreement concerning our initial public offering (IPO). those who argued that the Group should be broken up did not win the de- We’re preparing for both possibilities: an IPO in the first half of 2008 as bate. If we had accepted our image as the coal producer Ruhrkohle and not well as the integration of a major investor before that time. The foundation spoken up for ourselves, we would have been swept away by the changing bylaws permit both alternatives. One criterion the owner will use when political currents. But now we’re on the way to the capital market. If we making the decision will certainly be the amount of money each alterna- intend to operate at that level, we need to change our sponsorship strat- tive will contribute to the foundation’s funds. egy. For one thing, we will strengthen our nation-wide presence; for an- EVONIK MAGAZINE In 2018 the foundation will have to have €8 billion other, we have to systematically enhance the overall impact. to cover the coal-related inherited liabilities with unlimited duration. EVONIK MAGAZINE The four-year process we’ve talked about will cul- MÜLLER: The closer the foundation can approach this goal even now, minate in the upcoming announcement of the company’s new name. Do the better. you like it? EVONIK MAGAZINE People are already speculating about who the major MÜLLER: Well, I was initially a bit surprised, but it looks and sounds good investor might be. One name that keeps coming up is Gazprom. and can be easily understood all over the world. But ultimately we’ll be MÜLLER Well, I haven’t conducted any discussions with Gazprom to date, making a name for ourselves through what we do. If our operations are and they haven’t indicated any interest in talks either. good, it will be a good name; if they aren’t, it won’t help us much. <

221_Evonik_0307_EN1_Evonik_0307_EN Abs2:21Abs2:21 119.09.20079.09.2007 13:46:3513:46:35 UhrUhr 222_Evonik_0307_EN Abs1:22 2 _ E v o n i k 2BSNS RA EVONIK MAGAZINE 3/2007 BUSINESS AREAS 22 _ 0 Substance and Strength 3 0 from residential facility management to the electricity fromfrom management ourwallsockets. residential totheelectricity facility of oureveryday lives. Evonik’s range products from facialstobiofuels and AG’s long-term earningpower. Afterall, thethingsitmakes are essentialelements security, andourgrowing are thefoundation life expectancy ofEvonik Industries inthefuture.set toexpandthemeven further Themegatrends ofmobility, energy creative problem solutions,itoccupiesleading positionsinthesemarkets andis growth markets chemicals, energy, andreal estate. toitsspecialistsand Thanks The newgloballyoperatingindustrialgroup from theRuhr region isactive inthe

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Leading the Global Market The chemicals specialists from Evonik Industries AG are turning today’s dreams into tomorrow’s successful products, and the Group into a high ﬂ ier on the capital markets

TEXT CHRISTOPH PECK well as in China and the Rhenish village of Kalscheuren. Evonik’s innovative power is MORE THAN 36,000 employees work also exemplified by the fact that 20 percent in the Chemicals Business Area of Evonik of all of the Business Area’s products are Industries AG. The Business Area is itself less than five years old. It therefore comes divided into 12 Business Units. Together, as no surprise that Dr. Klaus Engel, who has these units generated revenues of €10.9 bil- been a member of Evonik’s Management lion last year. Evonik is active in the inter- Board for the past 18 months and is chair- esting areas of specialty chemicals, where man of the management of the Chemicals it is the world’s leading supplier. More than Business Area, answers promptly when 80 percent of its revenues are generated asked what he enjoys most about his new with products with which Evonik is a mar- job: “The incredibly diverse range of dif- ket leader worldwide. Production locations ferent products, the various markets, and exist in 60 countries around the world. the challenges we face” (see the interview The group’s diverse operations extend on page 31). over an extremely wide range of applica- So what exactly is Evonik’s Chemi- tions, including body care, space travel, cals Business Area? Well, for one thing, sports shoes, automobiles, anti-aging prod- it’s an Area with a long and eventful his- ucts, sound insulation, aircraft production, tory. It was formed through the merger of Floating through the air, and printable electronics. Evonik’s chemi- several predecessor companies like Stock- light as a feather — who cals activities are represented on all conti- hausen, Röhm, SKW, and Theodor Gold- would do that? Evonik, nents and are thus always close to its cus- schmidt, whose origins in some cases reach of course, with its innovative hard foams tomers. Carbon black, for example, which back into the first half of the 19th cen- that are both light increases the durability of automobile tire tury. By 2001, these businesses had been

and extremely strong KOTTE KNSK/ANATOL PHOTOGRAPHY: carcasses, is manufactured in Brazil as gradually collected under the umbrella of >

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SEPARION is the ﬁ rst-ever ceramic ﬁ lm and an indispensable ingredient of today’s lithium batteries STOCKOSORB granulated soil stores water and lets palms

> Degussa. Merging the companies boosted raise barriers in our thoughts between the their strength and ability to tackle interna- individual Business Units, valuable syner- tional challenges. In 2004 Degussa became gies will remain unexploited,” says Engel. a subgroup of RAG. It is now the largest of “Overall success is more important than Evonik’s Business Areas, encompassing successes in individual markets.” This ap- twelve of the Group’s 14 Business Units. plies to both commercial success and the The Chemicals Business Units’ main fo- creation of innovations. The company’s re- cus is on specialty chemicals. They manu- search activities are so well organized that facture products and provide solutions that they have been copied by its competitors. are not defined by their price but by their The research is conducted in so-called proj- utility and added value for customers. But ect houses, in which researchers from vari- what is at the heart of the 12 Chemicals Busi- ous disciplines work on a joint topic for three ness Units? Are there common elements, or years, as well as in science-to-business cen- does each one merely focus on boosting its ters, which open up new areas of business. own performance? To find the answers, we asked Dr. Alfred Oberholz, the Management THE FUTURE STARTS HERE Board member of Chemicals who is respon- Let’s take a closer look at the company by sible for innovations. He whips out a pad on examining four examples that express the which he begins to draw lines and cross- Chemicals Business Area’s charm as well as hatch areas. “If you look at today’s chemi- its power. We will begin our examination by cal research, there is very little that’s new going to the company’s largest production coming from mainstream areas,” he says. location, which is in Marl, Germany, where “Things get more interesting at the bound- we’ll find out what researchers’ dreams are aries between the various areas and disci- made of. For example, there’s the Müller plines. This applies to large-scale areas such family, who are sick and tired of having to as the boundary between chemistry and bi- pay excessively high utility bills. They there- ology, as well as to small-scale areas such as fore decide to generate their own electric- the boundaries between our Business Units, ity for their single-family home. To do so, where there is a lively exchange of ideas.” they call a painter to come by. Although this Promoting this exchange of ideas is the might sound odd, it’s not. That’s because key task of the two Evonik board members power connections in the basement or blue responsible for Chemicals. “If we always solar cells on the roof are things of the past.

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Nowadays, painters simply cover the facade with a special paint, and the electric meter Exploiting valuable synergies begins to count. The paint contains a photovoltaic substance that converts sunlight into to ensure overall success electricity. Although this sounds farfetched, it won’t be for much longer. To make sure such visions of the future become reality is the task of the experts from Evonik’s Chem- icals Business Area. Every morning when they arrive for work, the employees are welcomed by a message engraved in the floor of the lobby: “The Future Starts Here” is written in red letters on the threshold to the offices and labs of the Science-to-Business Center Nanotronics in the Marl Chemistry Park. This is the entrance to the world of the smallest things. The following comparisons illustrate the scale at which nanotechnolo- gists conduct their research: a collection of 100 x 100 million carbon atoms would be as big as the period at the end of this sentence. And a human hair would have to be split 50,000 times in order to obtain a strand that’s one nanometer in thickness. The key word in the current research efforts is “printable.” If transistors can be printed — i.e. if the requisite materials can be produced as nanotechnological elements in paste form and sprayed onto chips like ink

onto paper — this will radically reduce the CHRISTIAN SCHLÜTER PHOTOGRAPHY: price of photovoltaic cells as well as displays > Evonik Board member Dr. Alfred Oberholz is in charge of innovations at Chemicals

227_Evonik_0307_EN7_Evonik_0307_EN Abs2:27Abs2:27 119.09.20079.09.2007 18:53:5518:53:55 UhrUhr Fast, safe, and still economical — cars contain many chemicals Playing with ﬁ re but remaining unharmed — invisible ﬁ re protection

> and TV screens. By the same token, social amino acids added to animal feed. These The future is called Radio Frequency Identification amino acids are also of interest to pharma- (RFID) chips will become much cheaper, ceuticals companies — e.g. for the produc- being made in since the use of today’s expensive silicon tion of infusions — and cosmetics manufac- wafer technology will no longer be required. turers — for skin creams, shampoos, and our labs Batteries are also about to undergo a revo- lotions. The field as a whole is now known lution. Here, Evonik already produces as “white biotechnology.” “We are intelli- SEPARION — a material that looks, folds, and gently combining biology with chemistry,” crumples like paper, but is in fact made of is how Dr. Thomas Haas, who heads the cen- ceramic and helps increase the safety and ter, describes his work. power of lithium-ion batteries. As a result, To find out how this is done, we go to the car batteries will look quite different in the office of Dr. Andreas Karau, who mixes future, and the batteries for computers, sugar with certain microorganisms in a fer- camcorders, and cell phones will become menter. This triggers a process in which the significantly more powerful. organisms transform the sugar into a chem- A few meters down the road is another ical product. Although this might sound sim- science-to-business center. We are trans- ple, the process is in fact highly complex. On planted from the world of nanoparticles to the wall of Karau’s office hangs a schematic that of renewable resources. “In the chemi- representation of the metabolic process cals industry, the utilization of renewable within a cell. To the inexperienced eye, the raw materials is set to become one of the diagram is nothing but an impenetrable snarl most important research topics in the com- of lines of varying thickness. “That’s where ing years,” says Evonik Management Board our expertise comes in,” explains Karau. member Oberholz. While chemistry was “We know the relevant pathways within the based on coal in the days of our fathers, the cell, and we know which ones we have to primary source material for basic chemicals widen and which ones to block off.” and plastics today is petroleum. But oil is be- It’s not only a question of identifying the coming scarcer and more expensive, which best source of carbon — at present it’s sugar, is why it makes sense for companies to look but soon it might be straw — but also, above for alternatives: renewable raw materials. all, of optimizing the various strains of mi- Biodiesel, produced from rapeseed oil, croorganisms and modifying them, with the is one such product; another one is the spe- help of genetic engineering or other meth-

228_Evonik_0307_EN8_Evonik_0307_EN Abs2:28Abs2:28 119.09.20079.09.2007 18:53:5918:53:59 UhrUhr 29 PHOTOGRAPHY: RED MOTORSPORT, EVONIK INDUSTRIES AG, INDUSTRIES AG, EVONIK RED MOTORSPORT, PHOTOGRAPHY: LEFT) (FROM DPA/PICTURE-ALLIANCE on sheets of glass Heavy, yet quick to take off — ROHACELL helps reduce the weight of the A380

ods, to do what they are supposed to do con- try aware of our expertise and also provide at Spa, Silverstone, the Nürburgring or Zand- sistently and not simply at random. information to our research and development voort are perfect places for talking shop with departments on what the automotive indus- automotive developers and for paving the LIGHT AND FAST try is interested in. To do this, we use the Lo- way for new business deals. But now let’s switch over to the town of Spa tus for demonstrating technologies.” Another growth market where Evonik’s in Belgium, where two Lotus Exige race cars The cars are used, for example, to dem- Chemicals Business Area operates is China. finished third and sixth, respectively, in their onstrate the properties of ROHACELL, a hard Shanghai’s Xinzhuang district was a hum- class during the Euro Races last June. “It was foam made of polymethacrylamide, which is drum suburb only a few years ago. Today a great success,” says an elated Martin Roos, a type of acrylic glass. Its distinguishing char- it’s the place to be, and not only because of who was one of the drivers and who heads the acteristic is that although it’s both extremely its huge tennis stadium, where renowned Red motor sports team from Heiligenhaus, hard and extremely light, it can also be bent tournaments are held. Besides its head- south of Essen. The race cars included prod- into different shapes when heated. The foam quarters in Beijing, Evonik Degussa (China) ucts developed by the Evonik Automotive In- is always used as a rigidity-enhancing core for Co. Ltd., the holding company for the dustry Team (AIT). The task of this global structures with outer layers such as carbon fi- Group’s chemicals activities in China, is cross-divisional team is to identify business ber, for example in aircraft construction (e.g. also present in Shanghai. Set up in late opportunities and technological trends in the in vertical winglets), medical systems, sports, 2002, the holding now has around 4,000 automotive sector, which is Evonik’s Chemi- helicopters, and wind turbine rotors. employees in China. In the coming three cals Business Area’s third-largest sales mar- The team’s activities are guided by the years it plans to increase its revenues of ket. Evonik products can be found in tires, lu- fact that although Evonik’s Chemicals Busi- €460 million to over €800 million. bricants, and batteries. They are used for ness Area is only a tier-two supplier (a sup- lightweight vehicle construction and are also plier of suppliers), it has to deal directly with BOOM MARKET CHINA contained in pipes, injection-molded compo- the automakers to show them it has the nec- The holding’s competitiveness is demon- nents, adhesive joints, paints, films and coat- essary expertise for such applications and to strated by the fact that the research and de- ings, head and tail lights, displays (LED sys- make it clear that Evonik’s know-how can velopment center in Xinzhuang had to be tems), and interior lighting systems. Taken lead to innovative product developments that significantly expanded last August, even together, automotive activities generate rev- make automobiles more economical, more though the company had only existed for enues of more than €1.5 billion, and reve- environmentally friendly, safer, and more at- three years. That “exemplifies our continu- nues are increasing at a higher rate than the tractive. This is done through presentations ing involvement in China,” said Oberholz industry is expanding, which means that organized by the AIT for automotive events at the official opening of the center’s ex- “Evonik keeps gaining new business,” as and auto shows. The small Lotus Exige is an pansion. This involvement is particularly Klaus Hedrich, the director of AIT, puts it. ideal tool for establishing contact with poten- evident at a location around 40 kilometers “We work at both ends: we make the indus- tial business partners. After all, the pit lanes from Shanghai, where the company is cre- >

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30SHAPING CHEMICALS EVONIK MAGAZINE 3/2007

“Investing in Growth Regions” Evonik Industries AG Management Board member Dr. Klaus Engel talks about the prospects of the Chemicals Business Area on the world’s markets

> ating a multi-user site for several different Business Units at one location. At the heart of the site is a plant of the Methacrylates to China project, or MATCH for short (RAG Magazin 2/2007). The plant will com- mence operations in 2009, producing around 100,000 metric tons a year of LCD screen materials, scratch-proof paints, high-grade adhesives, and interior panels for automobiles. All the signs point unmistakably to growth. “We’re now entering phase two of our China story,” says Dr. Dahai Yu, Re- gional President for Greater China. “The focus is on qualitative growth. We want China to make a substantial contribution to the company’s business in 2010.” These four examples from twelve business units are just a small sampling of an in- credible variety of different projects and products. We could have also mentioned diapers with enormous absorbing power, high-performance adhesives, fire protection glass and lots more — the stories would all be just as exciting, surprising, and, above all, innovative, because all the people working at Evonik’s Chemicals Business Area are inspired by the same ideas: they want to open up markets and create new ones. They use their creativity to search for the products of tomorrow and thereby create excit-

ing new prospects for their company. < CHRISTIAN SCHLÜTER PHOTOGRAPHY:

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EVONIK MAGAZINE Dr. Engel, what makes the are growing much more rapidly than western why our Business Units have adopted a product- Chemicals Business Area so fascinating for the Europe. We want to participate in this growth focused development approach. Research geared capital markets? through our existing products and new ones. toward the long term is conducted with our tech- DR. KLAUS ENGEL Chemicals has great pros- We’ve been very successful in this regard over nology platforms, which operate across all units pects for future growth because its products and the last two years, as we’ve posted growth of and strengthen our key areas of expertise. Exam- customer solutions can make a major contribu- more than 20 percent in some of the countries ples include biotechnology, functional films, and tion to all important megatrends. By that I mean in these regions. catalysis. But it’s important that researchers and mobility, communications, health and well- EVONIK MAGAZINE Where do you plan to fo- marketing experts work hand in hand in these ar- ness, energy efficiency, and renewable energy cus investment in the future? eas as well, as it allows us to significantly reduce sources. In addition, our products make automo- ENGEL Basically, the key factors in our decisions the time it takes to turn an idea into a market- biles and airplanes safer, lighter, and more fuel- about production locations include the cost of able product. I take it as a compliment that some efficient. They help ensure a reliable supply of raw materials, infrastructure, logistics, highly of our competitors are already trying to copy our silicon, which is a scarce resource, and they im- trained personnel and, of course, the proximity efforts in this regard. prove the quality of animal feeds, the manufac- of key customers. For example, while planning EVONIK MAGAZINE How is the new Group re- turing process for modern pharmaceutical prod- our recent “Methacrylates to China” major in- sponding to capital market analysts’ criticism of ucts, and much more. vestment project — also known as MATCH — conglomerates? EVONIK MAGAZINE What are the most impor- we found that Shanghai offered the best location. ENGEL These generalizations became irrelevant tant markets for the future? We also just commissioned a carbon black facility a long time ago. Many conglomerate stocks have ENGEL We’ve begun building up a global pro- in South America, a region where we’re already actually outperformed other companies’ securi- duction and sales network. Eastern Europe, Asia, well positioned, and we’ve expanded our Isoph- ties over the last few years. The most important and Latin America in particular are markets that orone chemistry operations in Herne because tasks in terms of the stock market are to convince Germany offers us an outstanding infrastructure investors of your company’s growth prospects and the greatest amount of expertise for this ac- and to set ambitious goals for yourself that you tivity. In the future as well, we will continue to can achieve. We’ve got excellent prospects for invest wherever there are promising growth op- growth and are already performing well finan- portunities or possibilities to generate synergies cially. We’re going to continue this success story, between production locations. That certainly ap- and then our share will definitely be successful plies to Asia, but also to other regions. To put it as well. simply, we need to be present everywhere where EVONIK MAGAZINE You’ve had many years of it’s required by the markets. experience in the chemicals industry. Which as- EVONIK MAGAZINE How important is inno- pect of your job at Evonik Industries has brought vation here? you the most pleasure so far? ENGEL It’s very important — in the area of chem- ENGEL What I like most is the sheer variety of icals especially, because as a German company we the challenges I’ve had to deal with. In terms of have labor costs that are not competitive every- the corporate culture, we’ve readjusted the bal- where in the world. We therefore have to make ance between decentralized responsibility and our business processes more efficient, introduce cooperation across the Business Units, incorpo- better system solutions, and ultimately offer bet- rated regional expertise to a larger extent, and ter products. That’s only possible through direct focused our activities more strongly on custom- interaction with markets and customers, which is ers and sales. <

DR. KLAUS ENGEL, 51, is one of Germany’s most experienced managers in the chemicals industry. Engel, who has a Ph.D. in chemistry, enjoyed a spectacular career at VEBA, Stinnes, and Chemische Werke Hüls before he was appointed Management Board Chairman of Brenntag AG in Mülheim an der Ruhr in 2001. Engel became Management Board Chairman of Degussa AG in 2006 and was appointed Chairman of the Managing Board of Degussa GmbH in the same year. At Evonik, Engel and his colleague and fellow chemist Dr. Alfred Oberholz, 55, share responsibility for the Chemicals Business Area.

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Fuel for Growth The world’s thirst for energy offers great opportunities for Evonik Industries AG’s creative products, which range from household electricity to complete power plants

TEXT WIELAND KRAMER addition, high raw materials prices are also forcing all countries to strive for greater EVONIK INDUSTRIES AG is the fifth energy efficiency and broaden their energy largest producer of electricity in Germany. mix — two areas in which Evonik has a wealth With revenues of €3 billion, its Energy of experience. Business Area forms a central component of Evonik’s energy activities range from the new Group, one that can be relied upon the production of electricity and heat in for secure earnings and excellent business large power plants and the consistent utili- opportunities for the future — especially as zation of alternative forms of energy, such the energy market is one of the fastest grow- as biomass and geothermal sources, to the ing sectors of the economy. sale and transport of primary energy sources Growing populations and dynamic eco- like coal, and the provision of innovative en- nomic development around the world are gineering solutions for complete power leading to a sharp increase in global energy generation facilities. consumption. Economic growth will be The portfolio displays great flexibility particularly strong in Asia, and energy re- and variety, and includes: Though presented quirements in the region can therefore be • Major power plants in the Rhine-Ruhr in an entertaining way in advertisements, expected to rise sharply. region and Saarland, with links to district Evonik takes very Germany’s Federal Institute for Geosci- heating systems seriously its commit- ences and Natural Resources in Hanover • Distributed power projects scattered ment to providing estimates that electricity consumption in throughout several regions customized power China alone will increase from 2,470 to • Industrial power plants at chemical and plants for every conceivable need, 5,100 terawatts (TW) in the period be- petrochemical facilities and in all regions tween 2005 and 2020 — that's about 106 • Power plants abroad in Turkey, the Philip-

around the globe KOTTE KNSK/ANATOL PHOTOGRAPHY: percent higher than the current figure. In pines, and Colombia. >

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The Herne CHP plant serves its entire region Computer simulation of the Walsum 10 hard-coal power plant

> Evonik operates eight state-of-the-art coal- nology. These facilities have been optimally Flexibility fired power plants in Germany. These integrated into densely populated and highly facilities have a combined rated output of industrialized regions, and thus offer a per- and variety approximately 7,000 megawatts (MW) and fect reference for new-build projects pur- produce around 40 billion kilowatt-hours sued by Evonik. The rapid approval of new on offer (kWh) of power each year. hard-coal blocks in Walsum and Herne For decades, the plants in the Lower would not have been possible, for example, Rhine area and the central and eastern sec- without foresighted planning by Evonik. tions of the Ruhr District have been among With its Clean Competitive Electricity the most important energy facilities in the from Coal (CCEC) concept, Evonik was region. There are also three coal-fired among the first power plant operators to be- plants in Saarland that have a combined out- gin reducing emissions at hard-coal facili- put of 2,000 MW. All of these facilities are ties. In pursuit of this goal the Group has operated either by Evonik itself or in coop- been developing and introducing state-of- eration with other power suppliers, includ- the-art technology. ing major electricity producers and local The new Block 10 in Walsum will con- utilities. vert its hard coal into heat and energy at bet- The latest examples of the flexibility ter than 45-percent efficiency. Although and sustainability of Evonik’s energy con- this rating is five percent higher than that of cept are its partnership with the Austrian other new hard-coal plants, pollutant emis- energy supplier EVN AG for construction sions will be 15 percent lower. of the new Block 10 at the Walsum plant, Such modern facilities make a tremen- and the inclusion of nearly 30 regional and dous contribution to environmental protec- municipal power supply companies in the tion, especially as energy experts estimate project for the new Block 5 in Herne. power plants with a combined output of 40,000 MW will have to either be built or A MAJOR CONTRIBUTION TO modernized in Germany over the next 20 ENVIRONMENTAL PROTECTION years, at a total cost of €50 billion. The 45- Voerde, Walsum, Herne, Lünen, Bergka- percent efficiency will be achieved not only men, Bexbach, Fenne, Weiher — the names by increasing the pressure and temperature of these Evonik power plants in Germany in the plant’s water-steam cycle, but also by stand for reliable supply and modern tech- using ultra-modern materials.

334_Evonik_0307_EN4_Evonik_0307_EN Abs2:34Abs2:34 119.09.20079.09.2007 15:45:3015:45:30 UhrUhr 35 PHOTOGRAPHY: EVONIK INDUSTRIES AG (2), FRANK PREUSS (LEFT TO RIGHT) (2), FRANK (LEFT TO PREUSS INDUSTRIES AG EVONIK PHOTOGRAPHY: Unloading coal from giant cargo ships to the Iskenderun power plant: The Transshipper

Evonik is also a leader in recycling power plants there can be operated safely and Combined heat and power plants (CHP) that plant byproducts: From 45 plants in Ger- economically. produce electricity and heat simultaneously many and neighboring countries alone, the Success abroad is possible thanks to a so- have a long tradition in the Ruhr region, for company takes in a total of 3.9 million tons phisticated concept that calls for develop- example. of residual waste per year in the form of flue ing plants and operating them over the long ash, granulates, and boiler slag. The waste term in an economical and environmentally A GROWING DEMAND is then recycled and used in the construc- friendly manner — and in accordance with FOR CHP PLANTS tion and cement industries as high-quality regional needs. The planning process for The efficient technology for CHP has been raw material. the Termopaipa project (165 MW) in used in the region for decades to provide Evonik believes the ability to generate Colombia, for example, takes into account industry and public networks with steam, electricity at competitive prices does not de- the topographical conditions of a high-alti- heat, and pressurized air. The Ruhr District pend solely on technology. Instead, it is a tude region and the small-scale structure Heating Network — one of the largest dis- skill that also requires the integration of of the local coal mining industry. The trict heating systems in Germany — stretches planning, construction, management, and Iskenderun plant (1,320 MW), which went over a distance of approximately 550 kilo- maintenance organizations, and the active online in 2004, makes an important contri- meters and supplies 2.1 billion kWh of heat participation of financial specialists, envi- bution to safe, reliable, and diversified per year. A large portion of the network’s ronmental engineers, and logistics experts. power generation in Turkey on the basis of heat is generated by the Herne heating In other words, the secrets of Evonik’s suc- imported coal. Here, Evonik came up with plant. cess are foreseeable investment costs, a an innovative solution for coal deliveries in And extraction of heat and process steam maximum level of standardization, short the shallow waters of the Bay of Iskenderun is of great significance in Saarland as well, construction times, rapid commissioning, in the form of a mobile coal loading station where the Saar District Heating Network short repair and adjustment times, and op- known as the Transshipper. Meanwhile, the covers a distance of around 280 kilometers, timal facility locations. power plant on Mindanao in the Philippines serving major industrial customers. Also German energy technology’s outstand- (232 MW) has not only improved energy one of the biggest district heating systems ing reputation worldwide is due to its ex- supplies on the island; accompanying long- in Germany, the Saar network produces ap- traordinary performance in these areas. Isk- term infrastructure measures have also proximately 875 million kWh of heat per enderun, Paipa, Mindanao: Three names in made for a better quality of life for local year. three regions that tell the same success story residents. CHP plants at six Evonik locations ensure of power plants made in Germany. Engi- Climate protection and emission reduc- significantly higher primary energy effi- neers and technicians from Evonik are also tions were a top priority for research and ciency and an environmentally friendly hard at work in other countries in South business operations at Evonik long before emission balance, as combined heat and America and East Asia, ensuring that power the current public debate on CO2 began. power generation plays a key role in reduc- >

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Electricity from scrap wood: Conveyor at the Lünen biomass plant Energy production in Fenne: Mine gas is used to generate electricity and heat

> ing CO2 emissions. The total output of Evon- Protocol signatories with coal reserves to in- Market leader ik’s energy-district heating systems is cur- crease their use of mine gas as an energy rently around 3,200 MW, which corresponds source. for biomass to the heating requirements of more than The Group is currently seeking to initi- 450,000 households. ate mine gas projects through discussions and geothermal Mine gas — for centuries, every miner’s with representatives from the world’s most worst nightmare — is increasingly in demand important coal mining regions. One such power these days as a fuel that helps reduce CO2 project is a joint venture with China’s emissions. Evonik is tapping into gas depos- Huainan Group, which will involve install- its at Germany’s two largest coal-mining lo- ing a heat-power-cooling facility at the Guq- cations: In Saarland, mine gas is captured iao mines that uses mine gas as its energy and stored in a more than 110-kilometer source and also reduces CO2 emissions. grid that feeds into industrial plants. The gas Evonik is also building degasification/ is also used at Evonik facilities. In addition, mine gas-recycling systems at three Russian Evonik operates the world’s biggest motor- mining facilities operated by Vorkutaugol. driven mine gas power plant in Fenne, These units are expected to lower CO2 thereby helping to prevent the release of one emissions by 12.2 million tons between million tons of CO2. 2008 and 2012. Evonik’s stated goal is “to In the Rhine and Ruhr regions, the use of make extensive use of mine gas as an energy mine gas is decentralized. Here, the mine gas resource and thus contribute by 2020 to a is used instead of natural gas, which helps to 20-percent or more reduction of CO2 emis- conserve resources and guarantee reliable sions from their 1990 levels.” supplies. The generation of electricity and heat with the help of mine gas was given a DISTRIBUTED POWER SYSTEMS big boost by the technology’s inclusion in AND RENEWABLE ENERGY Germany’s Renewable Energy Sources Act. One of the special characteristics of the Ger- This means energy generated from mine gas man energy market is its variety of fuels and now has the same ecological standing as energy technologies. The scope and com- power from the sun, wind, water, and petitive structure of the country’s electric- biomass. ity market requires the use of large power Evonik is convinced that the increased generation facilities that can be operated use of coal worldwide will cause many Kyoto very reliably and efficiently. At the same

336_Evonik_0307_EN6_Evonik_0307_EN Abs2:36Abs2:36 119.09.20079.09.2007 15:45:3715:45:37 UhrUhr 37 PHOTOGRAPHY: EVONIK INDUSTRIES AG (2), GERHARD BLANK (LEFT TO RIGHT) (2), GERHARD BLANK (LEFT INDUSTRIES AG TO EVONIK PHOTOGRAPHY: A spa in Erding: Geothermal power for district heating and recreation

time, a market for distributed power sys- implementing a new energy concept for Mi- nological development and contributes in tems continues to develop. Industrial com- chelin. The concept is part of a full-service many cases to environmental and climatic panies and municipalities in particular view contracting agreement. protection. localized power and heat generation as a The solution involves replacing the Evonik became committed at an early way of effectively contributing to a more ef- plant’s conventional steam boilers with a gas stage to efficient and environmentally ficient energy supply that conserves turbine system that includes a downstream friendly processing of biomass to produce resources. heat recovery boiler. This setup will make electricity, and it is now one of the leading Evonik has been active in the market for Michelin more or less energy independent. German companies in this sector. The Group distributed power systems for quite some The energy center built by Evonik in Bad now operates ten biomass facilities for com- time, and the company is a sought-after part- Kreuznach will produce more than 278,000 bined heat and power generation, whereby ner for the construction and modernization tons of steam and 85,000 megawatt-hours some 540,000 tons of scrap wood is used to of industrial power plants, biomass plants, (MWh) of electricity per year. The contract- produce 350,000 MWh of electricity and and small CHP facilities. Distributed power ing agreement, initially set to run for a pe- 500,000 MWh of heat each year. solutions are individually designed and ben- riod of 12 years, will provide the tire man- Last year, a scrap-wood biomass heating efit from the edge in expertise held by the ufacturer with state-of-the-art energy plant with an output of 20 MW began oper- company’s internationally active technology while also substantially reduc- ating in the city of Lünen, within the frame- engineers. ing costs. Evonik companies and the munic- work of a partnership between Evonik, the The generating capacity of Evonik dis- ipal power authority in Bad Kreuznach are local power utility, and North Rhine-West- tributed systems operated either by the also cooperating on other contracting proj- phalia’s leading waste disposal company. Group or by outside companies in Germany ects in the town. The Lünen facility — and two others in Ill- is currently approximately 800 MW. And menau and Traunreut — will efficiently con- thanks to the competent management of dis- EARLY COMMITMENT vert up to 200,000 tons of scrap wood per tributed systems operated by Evonik, the TO BIOMASS year into environmentally friendly electric- systems' output can balance out grid fluctu- When it comes to the use of primary energy ity and heat. ations, making a key contribution to power sources, there are practically no limits to the Depending on conditions at a given loca- grid stability in Germany. possibilities available for generating election, Evonik either offers the heat produced The French tire manufacturer Michelin tricity and heat. Evonik’s philosophy in- as process steam for industrial applications operates its largest German production fa- cludes the idea of exploiting the full poten- or else channels it into district heating sys- cility in Bad Kreuznach, which employs tial of energy reserves in Germany. Such an tems in the area. about 1,700 people. Large amounts of steam approach lowers the risk associated with en- Still a relatively young business field at and electricity are required for tire produc- ergy imports and strengthens value chains, Evonik is geothermal energy. The compa- tion at the location, which is why Evonik is thereby creating jobs. It also promotes tech- ny’s initial experience in this area dates back >

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“We’re Signiﬁ cantly Boosting Our Earning Power” Evonik Industries AG Board member Dr. Alfred Tacke plans to expand the Group’s technological leadership

EVONIK MAGAZINE Investors and financial markets expect public companies to produce solid results and offer exciting prospects for the future. What does your Business Area have to offer in this regard? DR. ALFRED TACKE We have a fascinating history of growth. We move with the market and do business in those regions where demand for power is rising sharply — for example, in Eastern and Southeastern Europe, Russia, and Asia. EVONIK MAGAZINE Your power plant on Min- danao in the Philippines…

> to the early 1990s. And today, Evonik is operating geothermal power plants located in Erding, Simbach-Braunau, and Unter- schleißheim. The geothermal plant in Erding, which went online back in 1998, will soon be boosting its output of energy for the district heating system to 63 MW in a second step. LEADER IN COAL TRADING A reliable supply of fuel is one of the key links in the coal-electricity value chain. With a market share of more than 50 percent, Evonik is the German market leader in domestic and international coal trading. The company’s marketing of domestic coal and its access to the dynamically developing global coal market is not only crucial for the reliable and economical operation of Evon- ik’s own power plants; operators of many other coal-fired plants and companies in the iron and steel industry also rely on Evonik’s many years of experience here. Meticulous quality management and a sophisticated logistics system that optimally utilizes the available transport infrastructure are extremely important when it comes to efficient coal trading and sales operations. Evonik’s coal trading unit sells approximately 36 million tons of hard coal each year not only to customers in the power generation and heating sectors but also to clients in

the iron and steel industries. < CHRISTIAN SCHLÜTER PHOTOGRAPHY:

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TACKE …is an outstanding reference project sector our latest power plant projects in Wal- TACKE No, which is why we’re stepping up our that is extremely important for our future plans, sum and Herne, and I’m very confident that we’ll investments in renewable energy sources. Our whereby we’re interested not only in Mindanao soon be cooperating extensively with Russian biomass activities are already successful, but but also the entire Southeast Asia region. The companies in power generation and district limited resource availability means we can only emerging markets here are relying on coal to cre- heating projects. achieve so much in that sector. We will there- ate a solid and affordable foundation for their dy- EVONIK MAGAZINE And how is business de- fore expand geothermal and biogas activities in namic growth. And China is already engaged in veloping in Germany? the future. a tremendous expansion of coal-based electric- TACKE Our plant construction projects in Duis- EVONIK MAGAZINE Why? ity production. Our power generation technol- burg-Walsum and Herne are moving forward on TACKE It’s the next logical step. Geothermal ogies, which offer high levels of efficiency at low schedule: Walsum 10 will go online in 2010, power already offers interesting potential; bio- levels of emissions, ensure sustainable and com- and we expect to obtain final approval for Herne gas activities are still in their early stages. Both petitive electricity production. Our partners in in 2008. Our partners at the municipal utility in activities offer outstanding export potential, Turkey know this, which is why we’re now con- Herne have contracted for a total of 600 mega- however. sidering construction of a third block in watts, which is a major success for our model. EVONIK MAGAZINE How did STEAG prepare Iskenderun. The remaining net output will, among other for its new role in the Group? EVONIK MAGAZINE Aren’t you also talking to uses, guarantee the supply of the Ruhr District TACKE We focused on power generation and energy suppliers in Russia? Heating network, so the project is definitely off discontinued gas distribution activities and the TACKE Yes, and I’m very impressed with devel- to a good start. thermal recycling of residual materials. We’re opments there. Russia is an outstanding place EVONIK MAGAZINE The planned expansion now expanding electricity production with re- for German companies to invest. We recently of renewable energy activities and the deci- newable raw materials and aggressively pursu- showed representatives from Russia’s energy sions made with regard to the second trading ing business opportunities abroad. Another key period for emission certificates have signifi- business field for us is coal trading. With annual cantly changed the playing field for hard-coal sales of around €1 billion, it not only makes a power plants. significant financial impact, but the expansion TACKE Yes, that’s true. The second National Al- of our trading activities helps ensure reliability location Plan and the EU’s package of energy of supply at our facilities and those operated by and climate policy measures have created a new our partners. situation. EVONIK MAGAZINE How are you getting your EVONIK MAGAZINE What exactly does this employees involved in these processes? mean? TACKE Employee expertise and international TACKE I expect it means that if current condi- experience are crucial for a company that oper- tions continue, it will no longer make sense ec- ates in a competitive market. Extensive and di- onomically to build new hard-coal power plants rect cooperation between management and staff in Germany after 2012. The planned increase is a top priority for us, which is why many em- of the share of renewable energy sources in the ployees are directly involved in decision-mak- DR. ALFRED TACKE 56, began serving as electricity mix to between 25 and 30 percent ing processes. Ultimately, this benefits the com- a state secretary at the will also have a negative impact on the hard-coal pany as well. German Ministry of sector after 2012. In addition, planning will be EVONIK MAGAZINE Evonik has three pillars. Economics and Labor in made more difficult by the uncertainties associ- How closely are they linked? October 1998. He was ated with the allocation of emission certificates TACKE Chemicals and Energy are connected appointed a member of the STEAG Management after that same year. Finally, the global boom in by materials expertise and market knowledge, Board on December 1, contracts is making facility construction more and especially with regard to renewable en- 2004, and became CEO expensive. ergy sources. The Chemicals Business Area of STEAG AG on January EVONIK MAGAZINE How are you reacting to also needs to be supplied with sufficient energy 1, 2005. Tacke has been this development? and raw materials at competitive prices. Other managing director of STEAG GmbH and a TACKE By picking up the pace. We’ve moved into major chemical companies can serve as a model member of the manage- the project and construction phases more quickly for us in this sense. The real estate sector cur- ment board of RAG than the competition. And the Walsum and Herne rently faces great challenges in terms of energy Beteiligungs-AG since projects were launched at an early stage; our part- efficiency and conservation — so that’s the link January 2, 2007, on which date STEAG AG nership models reduce risks; and our technology there. Everyone needs energy, which is why was formally reconsti- guarantees profitable results. it’s the common element of all three of our tuted as STEAG GmbH EVONIK MAGAZINE Is that enough? Business Areas. <

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A Good Return on Investment With a vacancy rate that is lower than average for the sector, Evonik Industries AG is a premium company with very bright prospects for the future

TEXT MARTIN KUHNA ing residences” is the guiding principle be- PHOTOGRAPHY CATRIN MORITZ hind this policy. “That’s a demanding assignment,” says REAL ESTATE is the third pillar of Evonik Dr. Peter Schörner, Evonik Management Industries AG. It’s an interesting market, es- Board member responsible for Real Estate, pecially since international investors have “one that we will continue to master, while for some time been turning to German real displaying social responsibility and eco- estate as a first-rate investment. Most of the nomic efficiency in our operations.” investors are interested only in fast profits, Schörner, a highly experienced finance ex- however, and see residential real estate as pert, wants to demonstrate that a socially re- properties for speculation. sponsible real estate company can also be Evonik is different. Our guiding princi- profitable — even profitable enough to at- ple is sustainability. The company develops tract stock market investors. With an eye to its real estate for the long term, keeps a bal- the Evonik initial public offering (IPO), anced portfolio of properties, and optimizes Schörner has already introduced measures its offerings for business success, but with- designed to further optimize structures and out treating the fast profit as the measure processes (see interview on pages 46–47). Plans for the future have of all things. In its portfolio of more than At the same time, he resolved to implement many faces 60,000 apartments, the company sees a business model designed for the long term — whether potential for long-term growth with good — one that would give an economic advan- carved in a tree returns. Our managers are guided by a tage over market competitors. or written in sustainable concept: the apartments are Maintaining and further developing a a letter — and they always well-maintained and renovated in line with real estate portfolio today clearly involves include “home changing needs and demographic develop- more work than in the past. The days when

sweet home” KOTTE KNSK/ANATOL PHOTOGRAPHY: ments. “Creating and maintaining outstand- people simply built homes, made the occa- >

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Gewerkenstrasse in Essen-Altenessen is typical of the Real Estate Business Area’s

> sional repair, and then raked in rental in- plays a decisive role in how well a complex, renovation and new construction program come are long gone. It’s often the case that neighborhood or district functions. Achiev- in the north of Essen has been under way for being successful requires more than just of- ing a balanced population of residents is ten years. The project involves housing fering attractive, modernized apartments clearly a key to ensuring that a residential complexes built in the 1950s, during old- for moderate rents. Keeping tenants satis- area functions well, and that the lifestyles of time coal mining’s “last hurrah” period in fied — with an eye toward preventing vacan- people of different ages and demographic Altenessen. Forty years later, it was all too cies and avoiding a difficult fluctuation — re- groups will complement one another. obvious that these apartments were not go- quires innovative concepts geared toward Sounds like badly paid social work, ing to be easy to rent, despite their technical the different interests of tenants and buy- doesn’t it? “At first glance, you might say upgrading. “Creating desirable addresses, ers. For Evonik that means implementing that,” says Heinz-Werner Buhren, head of preventing the emergence of ghettos, and an intelligent program of revitalization Evonik’s regional office in Westphalia. “But avoiding fluctuation,” — these were the ob- and renovation in numerous residential actually it is one of the prerequisites for en- jectives for the new designs, says Buhren. complexes. suring our long-term cash flow,” Buhren And he can point to a number of success sto- Given the “graying” of the population, for says during our talk in the new Essen/Bot- ries, including the Gewerkenstrasse and the example, there are several projects designed trop Customer Center. The center manages Krablerstrasse in Altenessen. to ensure the availability of senior-friendly the apartments in the north of Essen, with a apartments, with features including ground- wonderfully low vacancy rate of only 1.17 CREATING NEW STRUCTURES level accessibility without thresholds, bath- percent. The first project called for making fairly mi- rooms designed to accommodate seniors’ Kay Michael Mastalski is the Customer nor improvements to the surroundings. Then, needs, space for walkers and wheelchairs, as Center’s director. “Our Customer Center the following two projects, in the Hessler- well as a range of support options provided team has the job of designing the neighbor- strasse and in the Bückmannsmühle, involved by partners. hood,” he says with confidence. In Essen- structural interior renovation work. After all, Vogelheim, for example, the specialists from many apartments built in the post-war years FEATURES FOR YOUNG FAMILIES the Customer Center had determined there could easily be mistaken today for singles’ Young families are offered an array of apart- was a modest demand for small, inexpensive apartments. Back then, miners’ families of ments, duplex and single-family houses, to apartments. Four buildings here that were two adults and two or three children typically rent or purchase. And younger singles also slated for demolition were saved from the lived in spaces that a childless couple today require living spaces that are tailored to wrecking ball, and their small apartments would find too small — not to mention out- their specific needs. The way in which such were modernized — then quickly rented to moded floor plans and no balconies. That’s different tenant groups co-exist today — not the right tenants. why apartments were combined and made too close to one another, but also not entirely A 1.17 percent vacancy rate isn’t a stroke larger, horizontally and vertically. Also added separate like 30 years ago — is a factor that of luck. Begun by Evonik’s predecessor, the were heat-insulating facades and windows,

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well-cared for properties. Extensive planning resulted in a modern housing complex, where Jolina Giebels and Lea Potocnik feel right at home

new bathrooms, balconies, and new outdoor features, including play areas. Perfect planning and The Bückmannsmühle is a showcase example of how to modernize apartments orig- long-term success inally designed as single-storey units. On a sunny Sunday here, we spoke with Fatma Cüre, who was looking after her niece Ilayda, age three. Fatma, 36, tells us she was born in No. 12. Later she moved with her own growing family into No. 38, followed by a move to No. 44. Finally, since the renovation’s com- pletion, she’s been at home in No. 14. That’s the kind of fluctuation any property management company would gladly live with. And on the other side, Fatma’s parents still live in the complex, close to her sister’s apartment. Her other sister did move a few blocks away, but she visits often because the Bückmanns- mühle offers such a great play area for her daughter — that’s Ilayda, who’s happily fetch- Long-term success in residential real estate is possible only on the basis of long-term, thorough planning ing a new toy from beneath the balcony. That’s true customer loyalty. And why is Fatma sitting in the garden in front of No. 33? She explains that she’s visiting a neighbor. That’s what you call a well-functioning community. Another approach used in housing development involves boosting the concentration of homes in an existing residential area. Where these areas include plenty of open green space, a few new buildings can be added — homes that are modern and appeal- >

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Strategic planning is important. In the Krablerstrasse in the north of Essen, Heide Krone-Surmann and Georg Surmann ﬁ nd the housing complex with its

> ing but still in harmony with the style and Designing a character of existing homes nearby. That increases the operating efficiency per square neighborhood meter, of course, and enables a company to offer housing designs that would be difficult to realize by means of renovations. This applies in particular to one-family homes, which can be sold as well as rented. In recent years the modernizers’ also have turned to demolition on occasion. Many people tend to oppose this option at first. But today in the Johanniskirchstrasse complex in Essen, it’s clear to see that demolition can be a smart way to revitalize an area. Most of the little red structures here — among the very few homes built in Germany in the war year 1942 — are still standing in their spacious, landscaped setting. It’s a scene that prompts The Customer Centers know what the customers the question ‘Why tear them down?’. Well, want — and work with them to create a good environment Buhren explains, it’s hard to get prospective tenants even interested in them, never mind to rent them, despite the green surroundings and quiet but central location. They’re just too small, with no balconies — the usual problem. The first seven buildings slated for demolition are already gone, with more to follow. By 2011 the site will feature a mixture of modernized older homes and new, barrier- free rental apartments suitable for seniors — with attractive architectural design and a rainwater use concept that will grant a “second life” to surface water. Instead of being di-

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three apartment buildings containing 18 apartments a nice place to live

verted immediately into rain gutters and fed The next challenge for the Customer Center of course. In Essen’s Vogelheim district, for into underground sewer systems, the water is then to find appropriate new tenants. There example, Evonik’s Real Estate Business Area will run into open channels, pools, and ponds. was a case, for example, where another prop- is cooperating with two regional and local The concept is beneficial because the water erty management company was contracted property management companies that seeps slowly into the ground instead of being to have senior-friendly apartments built but use a similar concept: Allbau AG and THS mixed with wastewater after heavy down- then filled some of them to overflowing with (TreuHandStelle für Bergmannswohnstätten pours and churning through the already over- big families, including lots of kids. Living GmbH). burdened sewer system. What’s more, the so close to one another, the families and the Under the motto “A partnership for Vo- new water features will be a life-giving ele- seniors needing their peace and quiet were gelheim,” the three companies are modern- ment for a “multi-generation neighborhood constantly in conflict. The Johanniskirch- izing their 1,700 apartments in the district — garden,” which young and old can design and strasse development is designed to ensure about 60 percent of all rental housing in use together. that young and old can live together in har- Vogelheim. Renovations, some demolition, mony. Instead of annoying one another, they new construction, senior-friendly apart- TALKING IS A KEY will enjoy the benefits of living in a commu- ments, rentals, and condominiums — Vogel- All this requires good architects and con- nity that comprises three generations, with- heim is also getting a diverse array of hous- struction companies with the latest know- out all having to belong to a single family. The ing to ensure a balanced social structure and how and equipment, but the team from the Customer Center will ensure that the tenants reverse the tide of residents moving away Customer Center also is devoting lots of are “mixed” in proportion to match the neigh- from the district where mostly mine workers time to the project. When major changes are borhood development concept. And the men used to live. The city’s part of the bargain is in the works, good communication with the and women at the Customer Center are happy to maintain and expand the good infrastruc- tenants is a key to success. Older tenants, in to report that they can pick and choose: “We ture. That’s important, says Mastalski, “be- particular, are reluctant to leave their famil- receive between 100 and 200 applications cause you can hardly attract young families iar four walls. The tenants are invited to take every week; of that total, we will close maybe to a neighborhood and expect them to stay if part in many discussions, and solutions are ten leases.” The applicants include a large the kindergarten down the street closes a developed, making it possible to find suit- number of tenants of competing companies, year after they move in.” able new apartments for them just a few me- the Customer Center managers are proud to Evonik sees its business philosophy as a ters away. say — tenants who are disgruntled with their way to position itself as a premium brand And Evonik has already used this concept problematic neighbors and the competitors’ among property management companies. very successfully in many other cities: nearly profit-driven business models. That moti- And that, Buhren says, seems a surefire way all tenants who had to leave their old apart- vates the team to continually develop supe- to attract investors on the capital market: ments have continued to rent from the com- rior concepts. The municipalities are de- “We offer a sustainable model and success for pany, and in the same complexes. lighted with the housing improvements, the long-term.” <

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“A Win-Win Situation for All Parties Involved” Evonik Industries AG Management Board member Dr. Peter Schörner wants the Real Estate Business Area to make a key contribution to the new Group’s sustainable growth

EVONIK MAGAZINE Dr. Schörner, what do the new service company. This enables us to op- parently implementing all needed changes and you find the most interesting aspect of your new timize our structures, and subsequently the or- optimization measures and supplementing them position as head of Evonik Industries AG’s Real ganizational costs, in a manner needed for the at the organizational level with change manage- Estate Business Area? capital markets. ment. We can offset the impact of the necessary DR. PETER SCHÖRNER Since being called to EVONIK MAGAZINE Should tenants be con- reduction in the number of employees through serve on the RAG Management Board in 2000, cerned that the restructuring will be carried out part-time jobs for older employees, which lets my responsibilities have included preparing the at the expense of local customer care? us structure the change reasonably, without ad- Group step by step for the capital markets. Our SCHÖRNER That’s not going to happen. The verse social effects. Real Estate Business Area is a successful company regional presence and close proximity to the EVONIK MAGAZINE So people aren’t being with roots in the region, a strong sense of social tenants is assured by two branch offices, and made jobless only for the sake of the initial pub- responsibility, and a passion for residential con- ten Customer Centers and service offices, and lic offering? struction. Determining how it can meet the re- we’ve even added personnel at some locations. SCHÖRNER No. Based on our corporate his- quirements of the capital markets, that seemed to The customers will enjoy the concrete benefits tory and business philosophy, I see an opportu- me a tremendously interesting question. This is of management’s enhanced capabilities. And nity for us to stand out from some of our com- a central challenge, especially in light of the cur- we also will not slacken our commitment in the petitors, which are operated by private equity rent business practices of private equity compa- future to constantly improve our services at the investors and have largely discontinued modern- nies in the rental properties market, on the one locations. ization measures and integrated projects, for ex- hand, and the planned initial public offering of EVONIK MAGAZINE Lean structures — some ample. It’s also important to bear in mind that our entire Group in 2008, on the other. employees may not have liked the sound of there aren’t many urban development companies EVONIK MAGAZINE What is your concept for that. listed on the capital markets, because it suppos- the strategic positioning of Evonik’s Real Estate SCHÖRNER This kind of restructuring is a bold edly isn’t profitable. But we have concentrated Business Area? step; it’s not without risks. Our shared chal- holdings with which we can prove that housing SCHÖRNER First of all we focused on our stron- lenge is to grow together and build one real es- development does pay off, while boosting fair gest field, residential real estate, and we sold tate company out of eight strong companies — value. We have a portfolio of desirable proper- our activities outside of our core area, including and to ensure that the new company thrives on ties and the latest technologies. And we have ex- building management and project development the market by providing first-rate services and cellent relations with the local municipalities, as businesses. Our second step was to dissolve the a business model designed for long-term suc- well as experience with designing efficient pack- eight, long-standing independent property man- cess. I recently visited our company’s locations ages comprising renovations to boost energy ef- agement companies — each of which had its own and spoke with our teams. My impression was ficiency, increasing the density of developments, administration — by bringing them under one that they all certainly exude a very positive out- and measures for owner-occupation. That’s why roof in Evonik’s Real Estate Business Area. Over- look and future-oriented drive. Their initial fears we are in a position to stand out from competitors arching and service functions were taken over by have been allayed, in part because we are trans- with business models more oriented to the short

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PETER SCHÖRNER, 48, studied economics in Bochum. He completed his doctorate degree in 1990 and then began his career as assistant to the Management Board at the then Ruhrkohle AG, where he subsequently performed various management tasks. At the age of 41, Schörner was chosen to serve on the RAG Board of Man- agement. In addition to being the Evonik Board of Management member responsible for the Real Estate Business Area, he is Chief Operations Ofﬁ cer (COO). Schörner lives with his wife and two children in Bochum.

term. I have announced our strategic objective: our property development business. In the final EVONIK MAGAZINE You are said to be very we must convince investors on the capital mar- analysis, thanks to the growth of our portfolio interested in the housing properties owned by kets that our sustainable business model is at least of properties, for the most part former miners’ TreuHandStelle für Bergmannswohnstätten as attractive, in terms of profitability, as the short- housing, we have a stable and by and large trou- (THS). When will you buy them? term private equity models. And I believe that our ble-free body of tenants, as well as low fluctua- SCHÖRNER The open questions regarding the employees also enjoy taking on this challenge. tion and vacancy rates. We also will continue to THS ownership structure have meanwhile been The decisive factor will be to make sure that long- work with the municipalities on urban develop- resolved. We have agreed with the labor union term business practices survive in the residential ment and housing improvements, but we will be IG BCE and the federal government that THS property market. Given the business philosophy very careful to make sure that the measures are will be jointly owned in the future by Evonik’s of some of our competitors, the feeling among economically sound, that a win-win situation is Real Estate Business Area and the union, which our employees, and also at companies that oper- guaranteed for all parties involved. For example will own equal shares. This means THS will be ate public housing, is: we’ll do what it takes not by boosting the density of housing complexes a conventional company owned by two stake- to fall into their hands. And many of those com- by adding new buildings, which increases rental holders. That is a good solution for a transitional panies’ tenants would like to come to us. space and income. We will be relying more on period. We then are big enough to be well- EVONIK MAGAZINE To what degree is the such package solutions. positioned to take on our competitors, and with real estate business a factor in the success of EVONIK MAGAZINE Some observers have this configuration we can work with the labor Evonik’s initial public offering plans? claimed that the Evonik Real Estate Business union to achieve further progress with the SCHÖRNER We are playing an important role in Area is too small… processes needed at THS, to leverage existing the equity story and in Evonik’s business success, SCHÖRNER …growth is indeed an important synergy potential. because we contribute significantly to ensuring aspect when it comes to inspiring the hopes and EVONIK MAGAZINE What do you foresee a stable dividend yield. We already have an ex- gaining the trust of investors. But that’s not done for Evonik’s Real Estate Business Area in ten cellent operational platform to build on. This in- only with quantitative growth — just boasting years? cludes our employees, who — unlike their coun- impressive numbers — without taking into ac- SCHÖRNER I want us to be a successful, cap- terparts at some competitors — are seasoned count the quality of dubious properties. When ital markets-based, real estate company with a veterans in the housing business who already it comes to solid, municipally owned housing belong-term business model — and considerably have an extremely successful track record. They ing offered for sale, though, Evonik’s Real Estate bigger than we are now. By then we will have are our greatest asset. And by the end of the year Business Area has good opportunities as an in- acquired properties and service companies in we will have installed an outstanding IT platform vestor, because in addition to offering the going other regions, especially from municipal housing that can outperform many systems in the sector. market price, we can see to it that the apartments companies, and be among the most successful It will allow us to further improve our internal will be placed in good hands, and profession- German real estate companies. But first we have processes. We also will be further optimizing ally managed and conscientiously maintained a duty to further optimize our performance. Re-

our maintenance and purchasing activities, and in the future. alizing future growth — that’s the fun part. < CHRISTIAN SCHLÜTER PHOTOGRAPHY:

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How do you glue an elephant to a wall? It’s not an easy task. But for the ﬁ lm crew working with Tembie, it was no problem to translate this advertising concept

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Who Would Do That? A strong performance: Thanks to its unconventional advertising campaign and outstanding branding, Evonik Industries AG is making its debut as a creative industrial group from Germany that operates all over the world

TEXT CHRISTOPH PECK

WHEN THE DIRECTOR calls “Action!” on the set, Tembie is all ears. Tembie is an elephant, and a real star. He does everything directors ask him to do, patiently follows in- structions, and isn’t fazed by the presence of the camera. There’s only one condition: he won’t cooperate unless his favorite fe- male elephant, Wenkie, is nearby. Tembie is available only as half of a duo. On this fine day in March, Tembie has to be glued to the outer wall of an office building in Cape Town. While traffic roars by on the freeway running diagonally above the set, Tembie calmly lets his handler place him in front of a blue screen — whose color the camera doesn’t pick up — while Wenkie looks on curiously from her position five

into a brilliant TV spot. Who would do that? Evonik — naturally KOTTE KNSK/ANATOL PHOTOGRAPHY: meters away. The director calls “Action!” >

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It’s amazing what Evonik can do

Impressive performance presented with wit and charm: Mama’s astonished by the absorbency of her baby’s diaper, which has just sucked up all the water in the paddling pool. Who would do that? Evonik’s Chemicals Business Area with its high-performance superabsorbers

> The takes are quickly completed and Tem- “I’ve got no idea what company’s being ad- watches as her baby’s diaper absorbs all of bie’s job is finished. The two Swedish direc- vertised here,” says one of the technicians the water in the pool. Who would do that? tors, Sven and Calle, are satisfied and ready on the set. “It’s all pretty mysterious. But I Evonik Industries AG would. This creative to shoot the next scene, which stars a pair of like what they’re doing.” industrial group, with its three Business Ar- cute twin girls. Quite a few people are wondering which eas Chemicals, Energy, and Real Estate, de- The girls only have to tilt their heads to- company is involved. The film clip makes velops special additives for high-strength ad- ward their shoulders and then straighten people curious about the new company and hesives and extremely absorbent polymer them up again when the director calls out, the new brand that Tembie and the twins, granulates. Its know-how is in demand for “Action! And one. And two. And up!” After among many others, are helping to extremely economical tires that save fuel several tries, they’re perfectly synchro- advertise. thanks to their low rolling resistance, yet nized. Finally, it’s the office building’s turn. hold the road securely. It builds power sta- The camera, initially tilted 90 degrees to the STRESS ON THE SET tions all over the world and turns scrap wood left, films the edge of the building, which The main concern on the set is to stay within into electricity. It knows how to protect skin now looks horizontal in the photographic the tight production schedule, which calls against ultraviolet rays and slow down the image. When the camera is straightened up, for two films to be created on every day of aging process. It builds houses whose inhab- the building tilts into its proper vertical shooting. Of course, not everything works itants feel so comfortable inside that they position. as well as the scene starring Tembie. For ex- prefer to mow their lawns from out of the The rest of the work consists of editing ample, the three little boys who have to slide second-floor window. And it develops ultra- and post-production: the various takes are down a slide into a plastic paddling pool rigid yet lightweight hard foam that can now copied, cut, and spliced together. In the filled with water don’t like the game at all. make aircraft lighter — which saves kerosene finished film, two sweet little girls are look- One after the other, they start to cry on cam- and enables a cleaning lady in the hangar to ing into the camera, with their heads tilted era. Finally, a girl comes along and shows lift up the front of the plane so that she can and their eyes wide with amazement. Next them how it’s done. In fact, that part of the mop the floor under it. And that brings us we see an elephant against a gray back- shooting was the simple one. It was much once again to the question of how to commu- ground. The girls tilt their heads back up- more complicated to build a mechanism that nicate such high corporate capabilities in right, and we see that the elephant is glued would suck 200 liters of water out of the creative advertising. to the side of the office building. Who would pool in four seconds. But that too finally The rollout of a new brand has to be prop- do that? worked. In the TV spot, a shocked mother erly staged, especially if the brand is being de- >

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Who would do that? Conventional TVs are rapidly being replaced by ﬂ at screens — like Who would do that? those produced by the experts at Evonik

KNSK — the Ad Agency with the Bright Ideas More than 100 clever people work at the KNSK advertising agency don’t know his clients, and he doesn’t know mine,” says Werner in Hamburg, which is a member of the BBDO Worldwide Network Knopf about his partner Detmar Karpinski. “And each of us leads his and consistently rakes in awards for its creations. In recent years, own team the way he sees fit.” This concept has helped the agency KNSK has won gold, silver, and bronze awards in many competi- to attract major clients. One of them is Evonik, for which Knopf’s tions, such as those sponsored by the Art Directors Club and the team, including Account Director Verena Warstat, Creative Director New Yorker Festival. The agency is known for its creativity and Text Olaf Hörning, and Creative Director Art Vera Hampe, imple- close cooperation with its clients. Each of the agency’s directors mented an attention-grabbing campaign for TV and the print even has his own team to deal with his or her individual clients. “I media.

Verena Warstat Olaf Hörning Werner Knopf Vera Hampe PHOTOGRAPHY: KNSK/JULIA GAENTZSCH (UR), BRANDNFILM (L) (UR), GAENTZSCH KNSK/JULIA PHOTOGRAPHY:

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Presenting innovations creatively PHOTOGRAPHY: KNSK/ANATOL KOTTE KNSK/ANATOL PHOTOGRAPHY: Rollout of the “saver tire.” Thanks The energy experts from Evonik build power Safety fi rst: The pyrogenic silica in fi re to the Chemicals Business Area, stations all over the world — wherever customers protection glass keeps the hottest fl ames in tires can help drivers save on fuel want them. In this ad, one is being built in sand isolation so they can’t cause any damage

> veloped for an existing company. In just three nication, worked as a copywriter, founded thing that would make people sit up and take years, a new industrial group has taken shape KNS in 1987 and landed prestigious projects notice.” That’s why the KNSK team carried inside RAG, whereby the Business Areas for- as word of his unbridled creativity got around. their message to extremes. The agency’s merly known as the “white” operations — the Today, a few years older but still as creative as creative directors Vera Hampe and Olaf energy, chemicals, and real estate activities — ever, he and his partner Detmar Karpinski Hörning were at times unsure whether their have become a separate company. These prep- (the other K) work for clients such as AXA, client would continue to cooperate, accord- arations made by the company management FTD, and ZEUS, the purchasing and services ing to Hampe. now have to be translated into concepts and association for Hagebaumarkt DIY centers But their fears were unfounded, and images. At this point, it’s time to bring in the (see box). KNSK is known for its creativity and KNSK went on to produce six TV spots in communications experts. Their job is to find close cooperation with customers. two versions: as seven-second teasers and a new name and develop a brand concept, as Both qualities were required for the 15-second informative spots for stage two well as an advertising campaign that explains Evonik project, which was required to “fo- of the campaign. In parallel, the Hamburg it all to the general public, and especially to the cus on making the new name well-known photographer Anatol Kotte created 12 mo- company’s target groups. and connecting it with the company’s per- tifs for the print media based on the same Who are the men and women who have formance.” The campaign was also sup- principle of illustrating the company’s cre- supported RAG in recent months and years posed to be “attention-grabbing,” “original,” ative achievements through affectionate and have in effect become the midwives of the and “aligned with the company’s market po- tongue-in-cheek exaggeration. The adver- new brand? We decided to find out what mo- sition.” The campaign took off like a two- tising specialists did not invent any of the im- tivates them and just what makes them tick. stage rocket. In stage one, the teaser cam- ages in the ads; all of the motifs are based on Our tour began on the shores of the Außenal- paign was launched on TV and in the print specific products or applications from one ster, an artificial lake within the city limits of media ten days before the rollout of the new of the three Business Areas of Evonik. Hamburg. brand. The ads were meant to arouse peo- The next phase of our journey takes us ple’s curiosity about the new company — from the Alster to the Rhine. THE ADVERTISER “and to make them really smile,” says Knopf. Here we meet Werner Knopf, the managing Each of the themes is presented in a short THE BRANDMAKERS partner of the KNSK advertising agency. He’s episode lasting seven seconds. “This was an The calm, thoughtful Ben Rünger and his also the first K in the agency’s name. Knopf, unusually short length,” says Knopf, “so it lively colleague Christoph Wallrafen are truly who was born in 1955, studied visual commu- was all the more important to find some- the odd couple. Rünger, who has a degree in >

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Company color: Eighty percent of all companies go for blue. But many other colors and color combinations are also already spoken for. Deep Purple is unique, and there are two reasons why it’s an excellent choice for Evonik: No other enterprise uses it, and it ﬁ ts with the positioning of Evonik as a creative industrial group

XEO — Masters of Brand Management

“Comprehensive services for your brand” is the motto of the XEO advertising agency in Düsseldorf, which developed the trademark and brand image of Evonik. The experts at XEO devise overall communication strategies and, if their clients so desire, organize their professional implementation. In its work, XEO focuses on two things: the brand’s character and the creative idea behind its communication. The creative teams at XEO generate energy for the brands of their clients, including prominent companies such as Henkel, Lindt, Merck, and BASF. Ideas from XEO have also impressed many juries. For example, XEO was recently named “Agency of the Year” for the third time in a row in the international communication competition “Spotlight Awards“ in San Diego — mainly because of its brochure “A Day in the Lifetime,” which was honored as the most creative product entered in the competition. The agency’s owner, Ben Rünger, and its managing directors Christoph Wallrafen (Consulting) and Heinz Fren trop (Creation) are responsible for a steady flow of new clients and successful Christoph Wallrafen Ben Rünger Heinz Frentrop advertising campaigns. PHOTOGRAPHY: CHRISTIAN SCHLÜTER PHOTOGRAPHY:

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> design, is the owner of the XEO communica- key areas of expertise “in order to position other German company on the DAX stock tion agency, and Wallrafen, who has an MBA, the company and home in on the brand’s ca- index. “Just look at the color ranges of the is the agency’s managing director responsible pabilities,” explains Wallrafen. other companies: lots of red, lots more blue. for consulting. Their motto is “Comprehen- In the next step, they worked on the That won’t do for Evonik. As soon as you see sive services for your brand.” They are spe- “strong differentiation” of the brand, which this color, you know which company it stands cialists in brand consulting, development, and involved deciding on the new name, logo, for.” He hopes the company’s design ele- communication, and they’ve developed a design system, font, and claim regarding ment, the clip, will have the same effect. The brand identity and design for Evonik. performance. And in the third step they en- clip will be used in advertisements, bro- How did they do it? “First of all, we did a hanced the brand’s staying power by devel- chures, and Evonik magazines to earmark lot of listening,” says Wallrafen. They con- oping a brand strategy and brand control important messages. The logo, the clip, and ducted approximately 20 interviews with processes. “We have thus defined what kind the color purple have characterized the com- managers and management board members of capabilities the brand has to develop pany’s appearance on the intranet and its to find answers to questions such as these: within the Group, against its competitors, website ever since the launch of the new What can this industrial group do especially and in the target group,” says Wallrafen. brand. The corporate magazines, brochures, well? What sets it apart from the rest? What When our discussion turns to competi- business cards, and stationery have also been do its customers buy from it? What are the tiveness and differentiation, Rünger takes aligned with the new corporate identity. outstanding achievements that are the basis of over. A brand is more than just the name of Trade fair stands, product packaging, adver- its success? How do these combine into Evon- a company, he explains; it also includes a tising materials, and the fleet will follow suit ik’s characteristic achievements, patterns of characteristic color, a design element, a in the months to come. Everything will have success, and areas of expertise? trademark, and a font. All of these factors to be uniform and unmistakable. After all, a In the process, they listened to stories taken together should make it easy for peo- brand has to be different from all the rest. about high-performance adhesives, light- ple to grasp the company’s basic nature. weight hard foams, biomass-burning power “The characteristics we associate with THE NAME CREATOR stations, high satisfaction rates among ten- Evonik are ‘clear,’ ‘strong,’ and ‘expert,’ as And that brings us to the key element of the ants, superabsorbers in babies’ diapers, and well as ‘individual,’ ‘creative,’ and ‘daring’,” company’s new identity: its name. To find environmentally friendly power stations. says Rünger. out more, we went to Baden. On the basis of such proofs of high-quality Accordingly, for Evonik they chose the Manfred Gotta has a special relationship performance, they identified the Group’s daring color purple — which is used by no with cars. When he’s been asked to invent a

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The principles of the design system are anchored in the trade mark of the new Group. The drawing illustrates the shared curvature of the badge, typeface, and clip. It’s a self- sufﬁ cient feature that ensures high recognition values

new name for a car, he locks himself into a room with the car, strokes it, lies down in or on or under it, touches it and smells it. “The Manfred Gotta — the Man question in my mind the whole time is: what impression should this car convey? What’s Who Names Companies the best way to characterize it? A car is like a person. It has a soul, a face, and a rear end,” “It’s better to be a something with sharp says Gotta. corners than a smooth, round nothing.” This Today, Gotta is a major player in the quote from the German author Christian name game — or, better yet, its star. When Friedrich Hebbel occupies a prominent place he was in his late 30s he realized that he on Manfred Gotta’s website. Gotta, who has could make a business of naming new prod- made a name for himself through his naming ucts. After all, a clear, individual, and unmis- skills, realized about 20 years ago that every takable name is crucial to the success of a product and every company is unique, and product, service, or company. That’s why he that an unmistakable and patentable name is founded his institute for brand name devel- crucial to its success. The task of finding opment, which is known today as “Gotta® such names has become the mission of his ® Brands – Institut für creative Entwicklung Gotta Brands — an institute for the creative von Markennamen für neue Produkte, Di- development of brand names for new enstleistungen und Unternehmen.” products, services, and companies in Forbach Gotta can look back on a long list of (Baden), Germany. Sometimes there’s names he invented that have become house- a certain logic behind the names Gotta comes up with, such as “smart” (s for swatch, hold words, such as the Renault Twingo, the m for Mercedes-Benz, and art for the art of making automobiles) — but not always. Opel Vectra, the Porsche Cayenne, Kelts However, there’s always a strong emotional element, because Gotta wants his names beer, the smart, and the XETRA electronic to be not just appropriate but unforgettable — in the minds of customers all over the stock trading system. Names should be com- world. His success is demonstrated by an impressive list of product names, from Actron pelling and distinctive, and they should to Zenio, that have made him a pioneer in the sector.

function in every language. > BRAUER WOLFGANG PHOTOGRAPHY:

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The brand on its way to the customer PHOTOGRAPHY: TIM WEGNER (L.), FRANK PREUSS PHOTOGRAPHY: Taking off: A hot-air balloon bears the Kick-off: The BVB players and their fans wear the new name name Evonik through the skies of Germany and logo of their sponsor with pride

> All this requires lots of homework. After name have no special significance — it must • t he trust of our customers, whom we want Gotta has become thoroughly familiar with be an empty shell, to be filled with what the to impress through the top quality of our a product or a company, he writes down his Group does, worldwide. When a name can products; and finally, conclusions and gets together with his team incorporate all of that, then it works. • the trust of the general public, who expect to begin developing the new name. Most of us to engage in sustainable business the ideas land in the wastebasket, but even- LORD OF THE BRAND operations. tually a list of possible names remains. These We finally return to Evonik headquarters in This trust needs an anchor — the corporate are then tested in focus groups. The short Essen, where we meet Markus Langer, the brand.” And that’s the reason, Langer con- list of favorites — which in many cases may head of Corporate Marketing. For Evonik, cludes, why “companies also have to be still have 20 names on it — is carefully scru- Langer is in effect the keeper of the corpo- brands”. tinized to find any potential pitfalls. rate brand. When we ask him to define a Companies that are brands possess a So far, Gotta has not made any of the mis- brand, he replies immediately: “The brand valuable property that is important even takes that have plagued his competitors. is the anchor to which the company links its though it is immaterial. That’s because a Sometimes a bad choice, such as the name products and services.” company’s value consists not only of its rev- Phaeton, is due to ignorance (it means “the Which brings us to the brand identity — a enues, production plants, employee poten- shining one,” but it’s also the name of the sun company’s self-image — and the brand image, tial, and patents, but also of the immaterial god Helios’ son, who insisted on driving his or the way the company is seen by others. value of its brand (or brands). Strong brands father’s chariot and promptly crashed it). One of Langer’s responsibilities is to make result in bigger sales volumes and can also Sometimes it’s due to linguistic quirks, as in sure the two coincide. “In order to have long- demand higher prices. What’s more, they the case of the Fiat Uno, which didn’t sell term success and create value, we need are also more attractive for investors and well in Finland because in Finnish “uno” trust: employees. means “fool.” But poor choices can be pre- • the trust of the investors who will invest According to the experts, they are “top vented through careful research. their money in our company in the of mind” brands — that is, they occupy such How did Gotta come up with the name future; a prominent place in our memory that they Evonik? He’s not at liberty to talk about the • the trust of our present and future employ- occur to us immediately when we’re mak- creative process itself, but “the name has to ees, who link up a large part of their lives ing purchasing decisions. And ultimately, be clear, strong and must not prejudice any- with us, and therefore obviously want to the aim of all these efforts is to make Evonik

thing,” he says. The individual letters of the know what we stand for; exactly that kind of brand. < KOTTE KNSK/ANATOL PHOTOGRAPHY:

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This is the kind of advertising motif that “sticks.” The “What?” effect helps to sell the Evonik product range

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The RAG-Stiftung Ushers In a New Era The RAG-Stiftung will launch Evonik Industries AG on the capital market and help ensure that the adjustment process in the German hard coal industry is managed in a socially responsible manner until 2018

TEXT CHRISTOPH PECK the aegis of a foundation, separate its this structure, the industrial group had to “white” operations (Chemicals, Energy, be liable, with all its assets, for the mining ON JULY 10, a long period of struggle and Real Estate) from the “black” ones group. It was not allowed to pay out any over a controversial and hotly contested (coal), and launch it on the capital market. dividends to its shareholders E.ON, RWE, plan culminated in a simple bureaucratic But the elegance of the idea became in- ThyssenKrupp, and Arcelor. procedure as the district administration in creasingly convincing. People gradually re- Consequently, these shareholders did Düsseldorf approved the RAG Beteiligungs- alized that this was the only way the Group not invest any of their own assets in the AG’s application to establish a new founda- could throw off its historical burdens with- RAG Group. This severely limited the RAG tion, the RAG-Stiftung. This amounted to out simultaneously harming the mining in- Group’s access to fresh capital. “As a re- the formal establishment of the new foun- dustry and placing new burdens on the sult,” Dr. Müller would tirelessly remind dation. It was a prosaic procedure, but it public sector. They also saw that, con- listeners inside and outside the Group, “our marked a break in the Group’s history. versely, politicians could make decisions ‘white’ operations have no hope of The story of how the RAG-Stiftung came concerning energy policy without having surviving.” to be must include an analysis of Germany’s to fear the possibility of condemning thriv- energy policy as well as a report on the pro- ing companies to bankruptcy. FOUR KEY TASKS FOR THE NEW cess of forming a new industrial group and The foundation model transforms the FOUNDATION making it fit for the capital market. Many joint liability status of the “white” and the The first idea that was considered was to in- people participated in the process, up front “black” operations into a redefined scope of vite the various RAG shareholders to sell as well as behind the scenes. First of all, the liability. This may sound like a minor seman- their shares for the symbolic price of one Group’s employees had to be convinced, tic alteration, but in fact it cuts the Gordian euro. That would relieve them of their part then the national and state politicians, and knot and has far-reaching consequences. of their responsibility for the RAG mining then of course the labor unions — while The Gordian knot was the corporate operations’ inherited liabilities with limited keeping a wary eye on the capital market. structure of RAG, which was unique in duration. Two years ago, when RAG Chairman Germany and had been a serious handicap But — this was the second issue — to whom Dr. Werner Müller made public his vision to the further development of the Group. In should the shares be sold? To a normal com- of the Group’s future, it was by no means a this structure, two completely different in- pany? That would only have continued the foregone conclusion that the foundation dustrial groups had been combined to form problem under a new name. A public trust? would eventually be established and form one entity: the internationally competitive That would have meant in effect national- a milestone in the RAG Group’s history. industrial group consisting of the Chemi- izing the coal mining operations and the in- Many genuine experts and some self-styled cals, Energy, and Real Estate Business Ar- dustrial group. This left only the option of a ones were extremely skeptical about Mül- eas, and the mining group, which mines private foundation that would receive the ler’s plan to restructure the Group under hard coal by government contract. Within entire assets of the former RAG Group. >

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A Man of Action Wilhelm Bonse-Geuking studied mining at the RWTH Aachen. While still a student he gained his first work experience at the Anna mine near Aachen, and he has felt a bond with mining and with the Ruhr region ever since. Today, as the Chairman of the RAG-Stiftung, his responsibilities include organizing an exit from the mining business by 2018, in a socially responsible manner. That is the objective as speci- fied by the coal industry compromise, and by the RAG-Stiftung’s charter. Back when there were lots of speculations about who would serve as Chairman of the foundation, no one thought that the choice would be Bonse-Geuking, who formerly served as the CEO of Veba Oel AG, the Chairman of the Board of Deutsche BP AG, the head of BP Europe, and is currently Chairman of the Supervisory Board of Deutsche BP. And nor did he think he would be chosen. The phone call from the office of the German Chancellor came as a surprise. Bonse-Geuking didn’t need much time to think it over: “You don’t say no to such a request,” he says. Now — the man who is said to have excellent contacts in the Ruhr region and beyond, who has a good relationship with Chancellor Angela Merkel, who previ- ously worked at Veba with Evonik Chairman Werner Müller and Chairman of the Board of Trustees Ulrich Hartmann — now, at age 65, Bonse-Geuking is starting a third career. He will head the foundation for a five-year term. Joining him on the board are Gustav Adolf Schröder, the former Chairman of the Sparkasse Köln savings bank, who will be responsible for Finance, and Ulrich Weber from the Evonik board, who will serve as head of Human Resources. “Objective and conscientious,” is how Bonse-Geuking describes the team. The energy manager is delighted that it was possible for the foundation model to be “taken from the blueprint to reality.” Now, Bonse-Geuking’s task is to separate the ‘black’ operations, with the mining activities, from the ‘white’ activities — Evonik’s Chemicals, Energy, and Real Estate Business Areas — “before the end of the year, and to lead them to future success under one roof at the RAG-Stiftung.” PHOTOGRAPHY: KARSTEN BOOTMANN KARSTEN BOOTMANN PHOTOGRAPHY:

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“You don’t say no to such a request”

> The third issue was: What should be the joint liability and will finally be able to op- ple. The latter removed the final stumbling foundation’s function? The key tasks were erate like a “conventional company,” says blocks, some of which were enormous. defined as follows: Müller. That made it possible to establish the • It should manage the adjustment process However, quite a few discussions were RAG-Stiftung, which consists of a Manage- of the German hard coal mining industry still needed before all the partners in the ne- ment Board and a Board of Trustees. The until 2018 in a socially responsible gotiations were convinced. The scenario three-man Management Board, headed by manner. was absolutely clear, but it was also bound Energy Manager Wilhelm Bonse-Geuking, • It should safeguard the further develop- up with the discussion of future energy pol- is supervised by the Board of Trustees, ment of the Group with its Chemicals, En- icy, which was repeatedly heated up by all which is headed by former E.ON CEO Ul- ergy, and Real Estate Business Areas. the parties involved. Should residual mining rich Hartmann and includes as ex officio • After the dissolution of the joint liability operations be preserved, or should Ger- members the Federal Minister of Finance, status, it should float the industrial group many get out of the mining industry as soon the Minister-Presidents of the states of on the capital market. as possible? What would it cost to phase out North Rhine-Westphalia and Saarland, and • It should use the proceeds from the capi- mining in 2012? Or in 2018? How high are the chairman of the IG BCE labor union (see talization of the industrial group to perma- the inherited liabilities with limited duration box). nently finance the hard coal mining oper- (pensions and compensation for damage The first official act of the new founda- ations’ liabilities with unlimited duration. due to mining)? How about the inherited li- tion was to sign the purchase contract for abilities with unlimited duration (especially the takeover of the RAG shares formerly In the crucial fourth stage of the delibera- above ground and underground water proj- owned by E.ON, ThyssenKrupp, and RWE tions, it was decided that the foundation ects, which require maintenance)? for the symbolic price of €1 each. Arcelor would separate the two parts of RAG, launch While these issues were being publicly Mittal will also sell its shares in RAG under the renamed industrial group, or “white” discussed, Müller was pressing ahead with the same conditions. In order to sell their operations, on the capital market, and re- the transformation process within the shares, the Ruhr-based companies had to ceive the proceeds. The aim is to earn around Group. The organizational structure of the once more request specific certification €5 billion in several tranches for Evonik on future industrial group was designed in re- from auditors to the effect that their shares the capital market. The invested revenues cord time. Meanwhile, ministry officials in the RAG Group had “no positive value.” should cover the costs of the mining opera- from the national government and the coal- Müller, guiding spirit of the whole pro- tions’ inherited liabilities until 2018. mining states, labor union officials, and cess, was extremely satisfied with the out- According to Müller, this creates “a win- RAG employees were working out the de- come. “When the RAG-Stiftung becomes win situation that benefits everyone in- tails. Everything that was controversial was the new owner of RAG AG, probably in De- volved”. Most importantly, the “white” op- written within parentheses in the docu- cember, a new era will begin for RAG as a erations will be released from the status of ments and had to be resolved by the top peo- whole,” he says. <

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How the Industrial Group Evonik Was Created

2003 2006 2007 • A new strategy is established for RAG: • Acquisition of 100 percent of Degussa • Key points of an agreement on coal focusing on the areas of chemicals, shares is concluded industry policy are signed by representa- energy, and real estate. • Squeeze-out in the record time of three tives of the federal government, the states and one-half months of North Rhine-Westphalia and Saarland, 2004 • Measures aimed at optimizing the the IG BCE, and RAG, on February 7 in • The new Chemicals Business Area portfolio continue Berlin. This agreement established the is established with the acquisition of • Sale of Degussa Construction Chemicals basis for the initial public offering of RAG 50.1 percent share in Degussa to BASF Beteiligungs-AG • STEAG AG’s acquisition of the Saarberg • Sale of DBT GmbH to the U.S. company • Politicians in the federal and state govern- energy businesses makes it possible Bucyrus ments decide that RAG Beteiligungs-AG to create the new Energy Business Area • Sale of Saar Ferngas AG begins should be floated on the stock market • Divestment of Rütgers’ plastics activities • Real Estate Business Area takes the • The various foreign mining operations decision to concentrate on residential are divested real estate • Within only 18 months, 280 companies • The capital markets’ confidence is with total revenues of €4.5 billion gained on the basis of the “foundation/ come under new ownership, without the initial public offering” concept: need for compulsory redundancies an international banking consortium agrees to provide syndicated credit of more than €5.25 billion for a term of five years • Planning for the optimization of the PHOTOGRAPHY: DPA/PICTURE-ALLIANCE PHOTOGRAPHY: controlling and service functions German Finance Minister Peer Steinbrück, completed in record-breaking time IG BCE Chairman Hubertus Schmoldt, (Project Sirius) RAG Chairman Werner Müller, and Federal • RAG Beteiligungs-GmbH is turned Minister of Economics Michael Glos following into an AG; seven-member Management the summit meeting in Berlin to address the future of the hard coal industry Board led by Chairman Dr. Werner Müller is selected • A good first quarter performance • Improved business results in fiscal year underscores the strong, stock market- PHOTOGRAPHY: KARSTEN BOOTMANN KARSTEN BOOTMANN PHOTOGRAPHY: 2006: EBIT increases by 11 percent RAG Chairman Werner Müller explains calibre of RAG Beteiligungs-AG: to €1.2 billion, while revenues grow by to the press how the company is revenues rise by one percent to €3.746 four percent to €14.8 billion. The on its way to becoming the new Evonik billion, earnings before interest and return on capital employed (ROCE) rises taxes (EBIT) are up by 21 percent, to 8.8 percent, exceeding the cost of 2005 corporate profit reaches €246 million, capital and the value of 7.8 percent posted • Complete takeover of Degussa begins more than doubling in the previous year • Start of the Group-wide Sirius Project • RAG-Stiftung is founded • Despite the full acquisition of Degussa, (optimization of controlling and service • Cabinet of the federal government passes the Group was able to lower its debt by functions) the hard coal finance law €200 million, to €5.4 billion. • Finalization of the core process for selling • The companies E.ON, RWE, and off non-strategic activities ThyssenKrupp transfer their holdings • Divestment of STEAG Electronic Systems in RAG to the RAG-Stiftung • Divestment of logistics activities • The new name Evonik is launched

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A Good Name Opens Every Door Marketing professor Dr. Klaus Brandmeyer talks about the creation of a brand and its long-term effects on customers and employees

A NEW NAME alone is not enough to create a brand. That’s because a brand is something like the good name of a company rather than just a trademark or a trademark color. And companies obviously can’t make a good name for themselves over- night. Instead, they have to prove to their customers and the general public, year after year, that they are reliable suppliers and partners meeting customers’ expectations with regard to quality without the tiniest fluctuation. That goes for products, customer care, and employees’ relations with outside companies, down to details such as the voice you hear on the telephone and the phrasing of business letters and invoices. A brand is created only after hundreds of thousands of customers have repeatedly had the same good experiences with a company and have always recorded these experiences in their memories in connection with a certain brand name. Only then do PHOTOGRAPHY: KEYSTONE/LAURENT GILLIERON KEYSTONE/LAURENT PHOTOGRAPHY: Professor Klaus Brandmeyer was for these experiences get passed on by word of mouth and ultimately consolidate into many years the Director of the Institute generally accepted public opinion. If we want to be a bit more scientific, we can also for Brand Technology in Geneva. He talk about the “positive prejudices” each of us adopts without thinking too much has also taught brand technology and brand about it. advertising at the Vienna University of Economics and Business Administration. Positive prejudices about a brand have extremely favorable effects on a company’s He was one of the publishers of Jahrbuch business operations. That’s because, just like negative prejudices — their ugly siblings Markentechnik (Market Technology — they are very long-lived. Companies can rely on them and use them as a basis for Annual) and the founder of the consulting planning production and sales. Besides, positive prejudices are almost self-propagating. company Brandmeyer Markenberatung They are passed down from one generation to the next. In other words, not only does in Hamburg the company in question advertise its own performance, but millions of its customers also advertise for it, voluntarily and free of charge. After all, we can assume that it’s very difficult to persuade people who hold prejudices that they are wrong. That’s a powerful advantage for a brand whose competitors are trying every day in a thousand different ways to lure away its customers. Employees also appreciate working for companies that have a good reputation. In business contexts, dropping the name of such an employer opens doors for you faster than just using your own name. Even in private conversations you can feel people’s respect for you go up a notch or two if you mention the well-known good brand you work for. And in moments like that you can also feel a bit of pride in being part of this brand. After all, this pride always includes pride in the contribution you yourself make every day at the workplace so that your company’s good reputation is not only maintained but also strengthened. It should be clear to everyone that a brand can’t live on its good name alone. It has to confirm its good reputation over and over again through top performance in concrete examples that customers and the general public see every day. When everyone connected with a company is aware of this and acts accordingly both on the job and on the outside, a brand becomes almost invulnerable. Everyone involved in such a company, employees as well as owners and shareholders, will reap the long-term benefits. <

662_Evonik_0307_EN2_Evonik_0307_EN Abs2:62Abs2:62 119.09.20079.09.2007 16:07:4016:07:40 UhrUhr US3_Evonik_0307_engl.indd 1 179AFOSN_AMEgU3i 1 213749_AUFLOESUNG_RAGM_Eng_US3.i1 We produce foams high-performance for Chemicals, Chemicals, andRealEnergy Estate. industrial group specialized in theﬁ lightweight aircraftlightweight components. But there’s much more to us. We are thecreative elds of Who makes lightweight components solight? We do. We 12.09.2007 18:51:19 Uhr 20.071:71 Uhr 13:17:11 12.09.2007

www.evonik.com US4_Evonik_0307_engl.indd 1 179AFOSN_AMEgU4i 1 213749_AUFLOESUNG_RAGM_Eng_US4.i1 We plan, build andoperate state-of-the-art group specialized intheﬁ Energy andRealEnergy Estate. more to us. We are thecreative industrial provide heating. district But there’s much power and plants thatgenerate electricity elds of Chemicals, elds ofChemicals, Who builds power plants all over theworld? We do. We 12.09.2007 18:53:20 Uhr 20.071:90 Uhr 13:19:09 12.09.2007