Dusseldorf It is an unusual constellation: until the end of March, Maike Schuh operationally managed one of the three large divisions of the specialty chemicals manufacturer Evonik. It is now her job to sell this division on the best possible terms. As the new CFO of the Essen-based group, the 49-year-old has a billion-dollar project in front of her.
It’s not a weird feeling. It is important to her that the shops that are up for sale are in good hands, Schuh told journalists on Wednesday. The Performance Materials (PM) division, with sales of EUR 3.6 billion, no longer fits into Evonik’s strategy. The group wants to get out of the capital-intensive bulk business and expand the more lucrative specialty chemicals.
This should also make Evonik significantly more profitable – this goal is at the top of the new board member’s agenda. In 2022, Evonik’s adjusted return was 13.5 percent with sales of 18.5 billion euros. The company expects profits to fall this year.
“From 2024 we have to get significantly better again in terms of profit and return on investment,” said Schuh. “At the current level, they do not correspond to what we intend to do in the long term and what you have to expect from specialty chemicals businesses.” Evonik CEO Christian Kullmann once set a target of 18 to 20 percent return on sales.
Agreement on the sale of superabsorbents later this year
The restructuring of the group is an important step in this direction. Evonik has already completed the first part of the separation from the PM division: the large Lülsdorf site near Cologne was sold to the International Chemical Investors Group. The ICIG also had to take over the employment guarantees for the workforce there, which were valid until 2032. This is a requirement for all partial sales.
The next and much larger project is the separation of the business with superabsorbents, a highly absorbent plastic that is used in diapers, for example. “I expect that we will come to an agreement on the sale this year,” said Schuh. Evonik makes a good 900 million in sales with superabsorbents – a capital-intensive and volatile business.
Buyers can be big Asian competitors like LG Chem or Nippon Shokubai. Schuh does not want to give details of the expected income. In financial circles it is said that Evonik can expect sales proceeds of 500 to 600 million euros from the superabsorbents. Financial investors could also be interested, but they are reluctant in the current uncertain financing situation, according to the circles.
There are numerous plants at the chemical site in the northern Ruhr area that Evonik wants to sell.
(Photo: Bloomberg)
For the biggest chunk in the sales plans, C4-Chemie with sales of two billion euros, the perspective should at least be clear by the end of the year. Schuh does not see the group under pressure to act. “We’re not planning a fire sale,” she said. One thing is clear: Evonik will invest the income in growth businesses such as food additives, biotechnology, new materials and special additives.
Schuh will play a strategic role in steering this restructuring over the next few years on the Management Board. She benefits from the fact that she has known Evonik for a long time: the law graduate joined the group in 2015, became CFO of the PM division in 2020 and took over management of the division in 2020.
“As CFO, I can only do a good job if I know the operational business inside out,” said Schuh. This applies to controlling as a whole: the employees should not deal with PowerPoint presentations, but deal intensively with the operational units and be their strategic partner, she demands. “We need clear numbers, but not mountains of slides.”
“Of course I’m not satisfied with our share price”
In addition to the typical PowerPoint crowds in companies, the 49-year-old also finds too many meetings a deterrent. “It is important to me that my teams implement the goals independently and are not restricted by too many meetings,” she says. She demands open feedback and criticism from her employees – also in her new role as Chief Financial Officer.
Schuh will also be in demand in the presentation to the outside world – especially to investors. The share is currently trading at EUR 20, which is 60 percent below the value of the initial listing in 2013. The price target specified by analysts is currently EUR 23.60 on average. “Of course I’m not satisfied with our share price,” says Schuh. The group restructuring that has been initiated should also help Evonik to move forward on the stock exchange.
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