Download - Evonik Industries

Investment risks: Investments undertaken by Evonik-Group can only be operated profitably if their sufficient
utilisation is warranted by corresponding demands. Complex investment projects may also be subject to
significant cost excesses or delays.
Acquisition and divestment risks: It is possible that potential acquisition targets are misjudged or a company
acquired cannot be integrated into the Evonik-Group as expected or at all. In the case of disinvestments,
there is a risk that these prove in the retrospect to have been disadvantageous. Evonik-Group could also be
subject to claims based on warranty provisions agreed to in divestment agreements.
Legal risks: Evonik-Group is exposed to risks relating to current or threatened legal disputes, administrative
proceedings, fines or damage claims, in particular with respect to shareholder compensation, alleged patent
breaches, anti-trust infringements, as well as guarantee claims from divestments.
Tax risks: There is a principle risk that the tax authorities may re-assess certain transactions or intra-group
services which may increase the tax burden. There is also a risk that existing tax loss carry forwards may not
be set-off or will cease to exist.
Pension risks: The pension commitments made by Evonik-Group are, inter alia, accounted for by balance
sheet reserves in the amount of EUR 3.9 billion as per 31 December 2008. If the actuarial assumptions on
which future payments are based change, this could entail a considerable increase of the pension
commitments and thus higher allocations to the pension reserves in future years.
Country risks: Evonik-Group faces in some of the countries in which Evonik-Group operates or to which it
exports its products a number of political, social, economic, financial and market-related instabilities and
may also be subject to currency control regulations as well as currency exchange rules it cannot influence.
Intellectual property rights risks: Insufficient protection of the intellectual property of Evonik-Group may
limit its ability to make use of technological advantages reached in a profitable manner or result in a
reduction of future profits. Should Evonik-Group not invoke and/or have invoked its rights within the scope
of the provisions of the German Employee Invention Act (Arbeitnehmererfindergesetz) or similar regulations
in other countries there may be a risk of the individual employees eventually becoming owners of the rights
relating to the respective invention. Since Evonik-Group's competitors also submit patent applications
relating to their inventions to a significant extent and obtain the relevant protection, Evonik-Group may
infringe third parties' patents and other intellectual property rights.
Information technology risks: In order to secure its operability in all three business areas Evonik-Group is
dependent on the efficient and uninterrupted functionality of its servers and data processing systems.
Unauthorised access to private data in its data processing systems may cause damage to Evonik-Group's
reputation, constitute infringements of administrative and criminal law and grant the affected persons a right to
damage claims against the relevant Evonik-Group company.
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