Download - Evonik Industries

Taxation: Potential purchasers and sellers of the Notes should be aware that they may be required to pay taxes or
other documentary charges or duties in accordance with the laws and practices of the country where the Notes are
transferred or other jurisdictions.
Independent Review and Advice: A potential investor may not rely on the Issuer, the Managers or any of their
respective affiliates in connection with its determination as to the legality of its acquisition of the Notes or as to the
other matters referred to above. Without independent review and advice, an investor may not adequately understand
the risks inherent with an investment in the Notes and may lose parts or all of his capital invested without taking
such or other risks into consideration before investing in the Notes.
Summary of the Risks relating to the Issuer
Risk Factors relating to the Issuer comprise, inter alia, the following risks:
Market and competition risks: As an industrial group active in the chemicals, energy and residential real
estate industries, Evonik-Group is subject to economic risks, competition risks and the risks typical for these
industry sectors.
Risks arising from the global financial and economic crisis: Evonik-Group has registered a pronounced
decline in demand and sales. If the global financial and economic crisis continues longer than expected or
worsens even further, this could have negative effects on Evonik-Group.
Procurement risks: The Chemicals and Energy Business Areas depend on the developments of the German
and international markets for a wide variety of raw materials, in particular crude oil and hard coal, as well as
for energy and raw materials logistics. Negative changes to those markets may result in increased costs or
even shortages.
Concentration risks: Certain of Evonik-Group's business areas operate in market segments that are highly
consolidated, exposing those business areas to concentration risks.
Research and development risk: The success of the Chemicals Business Area depends to a large extent on its
ability to develop new, innovative, customer-oriented and competitive products and to produce the same in a
cost-effective manner in order to successfully sell them.
Regulatory Risk: Changes to the legal, regulatory, tax and political conditions may complicate operational
procedures, increase costs or require Evonik-Group to abandon certain substances or discontinue certain
production methods.
Operational, production and environmental risks: As an industrial group, Evonik-Group is exposed to risks
of interruptions in operation, quality problems and unexpected technical difficulties, as well as to product
safety, occupational safety and environmental risks.
Exchange rate and interest risks: Evonik-Group is exposed to exchange rate risks where sales proceeds and
expenses are being realised in currencies other than the local currency of the relevant group company.
Fluctuations in market interest rates, could also have negative effects on the net income of Evonik-Group.
Liquidity risks: Evonik-Group's further business development depends inter alia on the ability to fund
investments, modernisations and acquisitions in all of its business areas as well as on the refinancing of
existing obligations.
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