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core markets and technologies. The remaining 15 per cent. is invested in strategic research to build new hightech
activities outside the group’s established business portfolio. This strategic chemicals research is bundled
at the R&D unit called Creavis Technologies & Innovation. The efficiency and strategic importance of R&D
for Evonik-Group is illustrated by the fact that products, processes and applications developed in the past
five years account for more than 20 per cent. of sales in the Chemicals Business Area.
Worldwide, over 2,300 R&D employees work at 35 locations. In 2008, Evonik-Group applied for patents for
over 350 new inventions. Its portfolio of patents and pending patents currently stands at more than 20,000,
and Evonik-Group has either registered or applied for some 7,500 trademarks.
Evonik-Group has more than 350 partnerships with universities all over the world, and invests more than
EUR 15 million annually in this area.
In the last five years, Evonik-Group has spent more than EUR 100 million on the research, development and
marketing of new nanomaterials and associated systems in the Chemicals Business Area. Moreover, Evonik-
Group is developing innovative processes to manufacture polycrystalline silicon for the solar industry and
propylene oxide as a precursor for polyurethanes. Market-focused R&D will drive profitable growth in this
business area in the future.
Research in the Energy Business Area focuses on safe, economical and environmentally compatible energy
supply. Alongside conventional power plant technology, Evonik-Group's research extends to thermal
utilisation of biomass and biogas, geothermal energy and energy storage using compressed air. Other R&D
projects include optimising the day-to-day operating efficiency of power plants and identifying potential
faults.
6. MATERIAL CONTRACTS
Evonik-Group did not enter into any contracts outside the ordinary course of business, which could result in
any member of Evonik-Group's group of companies being under an obligation or entitlement that is material
to the Company's ability to meet its obligations to the Noteholders in respect of the Notes.
7. TREND INFORMATION
Save as disclosed in this Prospectus, there has been no material adverse change in the prospects of the
Company since 31 December 2008.
A. OUTLOOK
The outlook for 2009 remains very uncertain. Consequently, it is not possible to give a reliable quantitative
forecast for sales and earnings. Evonik-Group still anticipates that sales and earnings will be considerably
lower in 2009 than in 2008 as a result of the ongoing economic crisis and the associated reduction in
volumes.
B. RECENT DEVELOPMENTS
Evonik-Group is being managed in line with clear methods of modern asset management. Since the
beginning of the economic crisis in autumn 2008 the main focus has been on measures to secure liquidity and
profit. Evonik-Group has started a programme called "On Track" the purpose of which is to enhance
efficiency and face the challenges posed by the global market downturn. The three main elements of this
programme are active portfolio management, consistent administrative restructurings as well as leveraging
both short-term and long-term earnings potential. The intention is to make sustained global savings in the
amount of around EUR 500 million per year by 2012. This year the group intends to reduce costs by EUR
300 million which are partially one-off savings and thus of a temporary nature. In the course of its active
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