Specialty Chemicals value creation summary 2016

We are a major producer of specialty chemicals, supplying key products to business-to-business customers in all four of our end-user segments. We utilize inherently high energy processes and focus strongly on reducing and energy use, while saving costs in our own operations.

Developing close relationships with our customers – and helping them to create value – is key to our ongoing success, along with efficient processes, an increased focus on eco-premium solutions and renewable energy and a high level of innovation.

The aim is to help us create economic, social and environmental value. Social value can be increased by our continued focus on safety, as well as our talent development programs and our contribution to various community activities.

All these initiatives are designed to play a role in contributing to our financial performance and enable us to deliver more economic value for our investors.

  • Economic value
  • Environmental value
  • Social value

Organization

Revenue breakdown by business unit in %

Specialty Chemicals – Value creation – Revenue breakdown by business unit (pie chart)Specialty Chemicals – Value creation – Revenue breakdown by business unit (pie chart)

Revenue breakdown by end-user segment in %

Specialty Chemicals – Value creation – Revenue breakdown by end-user segment (pie chart)Specialty Chemicals – Value creation – Revenue breakdown by end-user segment (pie chart)

Revenue development in % versus 2015

Specialty Chemicals – Value creation – Revenue development (bar chart)Specialty Chemicals – Value creation – Revenue development (bar chart)

Outcomes

13.2% ROS

17.9% ROI

19%

of revenue from eco-premium solutions

RD&I investments have resulted in 19 percent of revenue derived from eco-premium solutions with customer benefits.

Eco-premium solutions with customer benefits
% of revenue

Specialty Chemicals – Value creation – Eco-premium solutions with customer benefits (bar chart)Specialty Chemicals – Value creation – Eco-premium solutions with customer benefits (bar chart)

Indicates a positive development
Indicates a flat/negative development

Organization

3.2 million tons

upstream CO2(e) emissions

90,600 TJ

energy use

We continue to improve efficiency by reducing our energy use per ton of production, and are working towards improving our share of renewable energy. We continue to improve the environmental footprint of our operations by focusing on operational eco-efficiency.

3.4 million tons

CO2(e) emissions own operations

58 kilotons

total waste

Outcomes

1.9 million tons

downstream CO2(e) emissions

8.4 million tons

CO2(e) emissions cradle-to-grave

9%

improvement CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint

Indicates a positive development
Indicates a flat/negative development

Organization

9,000

employees at year-end 2016

1.8

total reportable rate of injuries
(per million hours)

Employee safety is a key priority and we are actively driving towards a reduction in the number of incidents.

Total reportable rate of injuries
per million hours worked

Specialty Chemicals – Value creation – Total reportable rate of injuries (bar chart)Specialty Chemicals – Value creation – Total reportable rate of injuries (bar chart)

Outcomes

€761 million

employee benefits

4.22

employee engagement score

We highly value, and actively work on improving, employee engagement. We’re investing in training and development and continue to work on achieving a more diverse workforce.

We participate in community programs and local sponsorships.

Carbon footprint

The carbon footprint of a product is the total amount of greenhouse gas (GHG) emissions caused during a defined period, of the product lifecycle. It is expressed in terms of the amount of carbon dioxide equivalents CO2(e) emitted.