Evonik Industries AG ($EVK)

[Interpreted] Welcome to the Innovation Press Conference 2026 at Evonik here from Essen. Nice to have you Innovation. Well, that actually means renewal changes, and we've got a lot of new things to present today starts already with the environment where you see me here because Evonik has got a new headquarters, and it's the first time that we broadcast live from our new headquarters to the outside world. What we've also got is 3 new innovation examples for you and we call them cases. And as always, that's not only new things, but they are also set and proven things -- as of now, you can submit your questions all the accredited journalists, can use the conference and the chat window to submit their questions and then later on, have a Q&A session, and we will be answering your questions. That has also been the case in previous conferences, and we want to do so today as well. But before going into the different innovation cases, we would like to take a broader look at the Evonik innovation situation and who will be more eligible than the member of the Board of Directors, Lauren Kjeldsen, who is in charge of innovation. Good morning. Thank you very much. Nice to have you here. I just wanted to ask you how you feel here at the new studio and new headquarters and a new TV studio, but you're the only one who has already broadcast live from here. It's not a premier for you.

[Interpreted] Well, it's a great studio, and I had the opportunity with an internal program, a dialogue with the Board of Directors to have the experience of the studio already once. Thank you for the invitation once more.

[Interpreted] Well, internally, we practiced a little bit in order to be sure that it works all okay and you are in charge of innovation on the Board of Directors, but also for Customer Solutions, it's a very important segment for the region Americas. It's not a small region either. What about your personnel and individual resilience when I look at your workload?

[Interpreted] Well, as I said, well, there's a lot to do. Resilience is not only an innovation topic. It's also a personal topic. It's a personal achievement that is required. What I tried to do every day is to find opportunities in each and every challenge, to learn from what we do and to drive our team in order to find solutions for our customers and for our markets. Well, new opportunities every day identify them.

[Interpreted] That sounds much like innovation, and that brings us right into the midst of our topic today. We're very happy that you will start to give us a broader idea of the innovation activities as a native U.S. American although she speaks excellent Chairman. She could certainly do it in German, but she prefers to present in English.

Hello, ladies and gentlemen. I'm very happy to speak with you today about innovation at Evonik, a topic I'm proud to support and the great value we place on it for our future success. First, I'd like to a step back and give some context. Today, we're operating in a world where uncertainty has become a constant theme. The ongoing crisis in the Middle East and in Ukraine are a few obvious examples. Events like these have led to a growing number of global supply disruptions and high volatility of raw material markets. Our established trade relationships are being challenged and new collaboration partners and new markets continue to emerge. This constant uncertainty requires companies to rethink how they operate, how they innovate and how they grow and stay successful. Today, I'd like to show you how we at Evonik are taking on these global challenges and positioning ourselves to generate value for our customers and stakeholders. In today's environment, it is obvious that resilience has increasingly gained importance. A resilient company is one that can absorb Shacks, adapt quickly to changing conditions and recover efficiently from setbacks and emerge stronger by learning and improving from challenges. It's not just about survival, it's about performing under stress and capitalizing on change. At Evonik, we build our resilience on our operational robustness, our strong financial foundation and our skilled and engaged workforce. Specifically, we build our resilience on our innovation capabilities and our strong customer relationships. Customer centricity is core to our business model. We identify risks proactively and make decisions when information is incomplete. I'll illustrate this with an example. At Evonik, we're no stranger to linking resiliency to innovation. In fact, during the COVID pandemic, we demonstrated our ability to pivot quickly in the face of global uncertainty and emerge stronger through collaboration and innovation with our partners. At the time, we quickly adapted our research and knowledge into applicable products for the changing situation. And because of that, our lipid nanoparticles we're able to play a key role in enabling messenger RNA vaccines that help save millions of lives. We demonstrated that we are capable to get things done. And at the same time, we contributed to the resilience of the health care system and society as a whole. Today, the challenges are different, but the value of resilience is the same. Like during the pandemic, our ability to be resilient will determine our future success as a company and as a contributor to the world we live in. Along with innovation, resilience at Evonik is tightly connected to sustainability. According to the World Economic Forum's 2026 Global Risk Report drastic environmental events are seen in the top 3 long-term risks businesses will face in the next 10 years. This includes extreme weather events and critical damage to our planets limited systems. At Evonik, we believe it is possible to reconcile growth and prosperity with our planet's finite boundaries. This is the reason why we are working on our product portfolio transformation. Between 2024 and 2025, the revenue share of our next-generation solutions rose from 45% to 48%. This is another great step towards a more resilient portfolio of products with a clearly superior sustainability profile. Scalable and economically feasible solutions are our recipe for success. Within the right regulatory framework, the green transformation can become one of the strongest market drivers of our time. As you can see, resilience, sustainability and innovation are intertwined. What does this mean for Evonik? With our products and system solutions, Evonik is positioned at the beginning of many value chains in a variety of markets. We create value for our customers so that their products become more differentiated, more resilient, or more cost effective. As a consequence, our innovation power turns into a competitive advantage for our customers or even the players further down the value chain. An example of this is our new plant in China for high-purity hydrogen peroxide. From this material, we're able to support a wide range of important industries such as solar panels and semiconductor manufacturing. Innovation has always been core to Evonik. It's part of our DNA, thousands of scientists and engineers in R&D and engineering or applied technology, work with and for our customers. That is why we continue to prioritize research and development even in challenging times. Last year, our R&D ratio remained stable at 3%. That corresponds to around $418 million in R&D expenses even in the face of significant economic headwinds. Approximately 82% of these expenses were directly allocated to R&D embedded in the business units, focusing on platform extensions and efficiency gains. A further 15% funded central R&D, working on adjacent markets and disruptive technology bets. As we stay committed to our innovation power, we need to get even more connected with our markets so we can become faster and even more effective. And this is now the moment to allocate resources efficiently and effectively towards our most promising projects. As such, we have focused on 3 innovation growth areas: advanced precision Biosolutions, accelerate energy transition and enable circular economy. We expect them to generate a combined EUR 1.5 billion in additional revenue by 2032. Within these broad innovation growth areas, we've identified value pockets where we can leverage our innovation power. You're going to see 3 specific examples in today's presentation. There are solutions already being industrially scaled today. One in is our anone-exchange membrane. Our AEM technology for green hydrogen. This was just yesterday, a new AEM center opened in Shanghai. It's our first one and fully dedicated to this technology and our first one in the region. In addition to advancing the benefits of this valuable technology, this investment is a clear commitment to the global market proximity. We are developing innovations where transformation is happening with the greatest speed. To strengthen resilience, we build production close to demand. This shortens supply chains and increases reliability. Another example is the expansion of our fermentation capacities in Europe. At the moment, we're investing EUR 80 million in Slovakia to further scale a biotechnological production of pharmaceutical ingredients. These ongoing activities highlight how we combine global setup, market proximity and resilience. Identifying the right opportunities, however, is just one part of the task. We also need to make sure that we use -- make the right use of them. In other words, it's not only about doing right things, it's about doing the things right. That is why we have made changes to our organizational setup. Excellent research alone is not enough. What matters is how quickly we translate lab results into viable industrial solutions. We have aligned our structure to strengthen exactly that, clear responsibilities, stronger market focus and faster decision-making across the organization. In just a moment, I'll hand it over to Christian Eilbracht, who's heading our innovation efforts to explain the details. Before I do that, I would like to say what is truly remarkable about our new setup is that it is significantly strengthening our ability to turn innovation into impact. Ladies and gentlemen, in a world that has become more volatile and uncertain, Evonik will continue to be a resilient and reliable partner for its customers and partners along value chains. Our innovation power and our ability to transform makes Evonik future relevant and the partner of choice. Thank you very much.

[Interpreted] Thank you very much, Lauren, for your presentation. I think we'll have plenty of questions afterwards. We will take on board already that innovation sticks to innovation even in difficult times. But for you, I've got a good piece of news now because you've got a break now while you can relax and can listen to the presentations by our experts. And then later on, we will meet again for the Q&A session and look at the different comments that we get on the Internet. Well, the question now is stems from what Lauren Kjeldsen has just described. How can this innovation power be taken into practice? How can you create real products based on the innovation ideas that you have. And Christian Eilbracht, the Chief Innovation Officer is going to tell you more about it. Lauren Kjeldsen explained what is about? And let us have a deeper look at this along with the gentleman who has to translate this into practice, Christian Eilbracht, our Chief Innovation Officer. Thank you very much for coming here. Good morning. So for you, as opposed to Lauren, it's a real premier -- it's the first time you take -- you are involved in this press conference and you are in the studio. Well, it's great to be here in this grade and marvelous studio.

[Interpreted] It's great. Great experience. all the workers, the promise to be silent. And if there is any noise due to their works because well, we are just moving to this building as of June 1, we moved officially to the new building and headquarters.

[Interpreted] But have a look at what you have to say about innovation. Well, since a certain time, you are in charge of the topic and you achieved many things. Well, I've been very lucky because we have this job since 6 months, well, I assume other responsibilities in the past and the company since 25 years. So that's why it's a bit easier. It's not easy, but it's easier and I'd like to explain how we implement this, how we want to improve innovation, how we want to focus more on innovation and how we want to bring innovation into products. Well, let us begin then. Let's look to the presentation of Christian Eilbracht, Chief Innovation Officer at Evonik.

[Interpreted] Ladies and gentlemen, Lauren Kjeldsen has just explained why innovation is so crucial today and I would like to show you how we organize this in practice at Evonik focus structure and consistency, how we develop ideas into marketable solutions with clear priorities strong ability to implement them because innovation does not happen by itself. True innovation is the result of conscious decisions. We have extensively restructured our RD&I organization over the last few months. Our aim was to increase the impact of our innovation work Around 2/3 of our researchers will work directly with in one of our business lines. They will be able to respond even faster to customer needs and develop solutions tailored to those needs. And our principle is clear. market-oriented development takes place where economic responsibility lies in our business units, the business lines. And we manage cross-business topics and projects with a longer-term focus. And this makes us faster and improves the quality of our decisions. Let me explain this briefly. Today, our business lines are responsible for business-oriented research and development. And this is where solutions for immediate customer needs are created. This is also where the responsibility for economic success lies. Our group innovation focuses on topics with the longer-term horizon. And this is where we [indiscernible] expertise that benefits our business equally. This includes our biotech hub and analytics. Add to this, there are strategic initiatives Other example of this is our [indiscernible] Evonik's the first company in the world to produce these surfactants. Renal lives were originally developed in the business line for a specific application only cleaning planting. The first major commercial application was a hand fish washer, this rushing liquid in Chile. However, we understand trickly that they are able -- capable to do more. They are a technological platform. They drive progress. And with our platforms, we drive technologies forward across markets and applications and hand them over to the business units when they are ready for the market. And the one innovation factory place an important central role in this. We have established it as an enteral development unit. Its mission to bring promising technologies to market. And this time constraint makes us even more mindful of how we use our resources, and we are focusing all our activities at the innovation factory entirely on the 3 innovation growth pillars. As Lauren Calton said, these 3 areas are expected to generate an additional EUR 1.5 billion in revenue by [indiscernible] -- and the Warning Innovation Factory is making a decisive contribution to this. It's 5 to 7 programs are expected to contribute up to EUR 300 million of this. Our benchmark is not more activity, but greater impact and we are now placing even greater emphasis on combinatorial innovation. What does this mean? Well, engines researchers might have let out of the back following a flash of inspiration and rush through the city shouting but those days are long run. Innovations do not arise in the quite compliance of a study. They rarely stem from a single discipline. That's why we deliberately bring together different partners and areas of expertise, chemistry, biotechnology, digitalization, universities, industrial companies, customers. And a good example of this is our collaboration with [indiscernible] and L'Oreal. Together, we combine expertise in these to biotechnology, industrial fermentation expertise and a deep understanding of customer needs. This is our new bio-based production routes for specific molecules are created. This is combinatorial innovation practice. And this is exactly how we work at Evonik today. We are continuing to pursue this approach through the group-wide next markets program. Here, we take a holistic view of the entire value chain. One example is the aerospace and defense sector. Here, high-performance materials, long-term availability, reliable supply chains are very important and our key with our materials expertise in our industrial base in Europe, we contribute to the resilience and technological sovereignty of such security critical value chains. Another key focus is the internationalization of our innovation activity. If you want to work with the brightest minds worldwide, and that is what we want to. You have to go to them. That's why we are actively involved in the world's leading innovation ecosystem Examples include our Cambridge Innovation settled near Boston, USA. The Evonik's on Skin Institute in Singapore or the India research up near Mumbai. This international presence strengthens our proximity to markets to partners, and it enhances our ability to learn. And all of this is complemented by targeted digitalization with our expert system, AI [indiscernible] , we combine artificial intelligence and human experience. The system helps our researchers to accelerate development processes, plan experiments more efficiently and better understand data. This increases the speed, robustness of our innovation and improves the quality of decisions. The Goldfire software library, underlying AI body is another example of combinatorial innovation. on the pioneering role here at an early stage. We programmed a large part of the code base -- that is important for us in the chemical industry, and we are now driving development forward in collaboration with renowned companies from the chemical and pharmaceutical sectors. So the results and tools that benefit not only Evonik, but the entire industry. We have set the course. Our experience shows that is not a laboratory results that determine the quality of an innovation, but customer satisfaction and success. And it is precisely this ability to deliver that you will now see in our technical presentations. Today, we are presenting solutions that have already made the transition from the innovation factory to industrial scale. These projects are the result of key priorities, synergistic collaboration and a rigorous organizational structure. They demonstrate how we develop innovation in a focused manner. And they show how we use this approach to create sustainable solution. Thank you very much.

[Interpreted] Thank you very much for your presentation. Later on, we'll meet you again during our question-and-answer session. I'm sure there will be many questions. So you said we have to focus more, and we have to do it all together. And we need combinatorial innovation. And I'm sure we'll come back to this topic. Thank you very much. Lauren Kjeldsen explained that Evonik in difficult times considers innovation is important. Mr. Eilbracht explained how to focus on what to focus on and how to make decisions because you cannot try out everything impossible. There are some constant things like, for instance, biotechnology. And here, we won during years and decades has been building up huge treasury of competencies. And one expert rents about biotechnology. Stefan Pelze is here. Warm welcome to you.

[Interpreted] Well, I'm happy to be here again.

[Interpreted] As I said right before, biotechnology, you are involved in -- and your working disputes since a very long time.

[Interpreted] Well, it's the third time that I take part in this press conference happen here in 2017 and 2024. And I'm happy to be back again. The last time we have been talking about the skill of the human. Today, it's about another topic.

[Interpreted] So once you are involved is very often about bacteria. So many things -- many people say, wow, discussing. But do you think they are very interesting. So what's interesting from your point of view?

[Interpreted] Well bacteria are the main course of many diseases, infection diseases is obvious. But on this planet, in our life, our life wouldn't be possible without bacteria, for metabolisms for our health. And in addition, we know that Evoniks, we are able to use bacteria in order to develop new substances or in order to use bacteria in the frame of the manufacturing of products.

[Interpreted] Well, I'm not an expert in this -- but let me say in my words, well, there are probiotics and antibiotics. So what's about this?

[Interpreted] That describes 2 principal antagonisms in micro technology. So anti this is against the life, very important substances. But they hinder or slow down microorganism, very important. This brought us a plus in our life expectations. On the other hand, probiotics for the life, that's micro organisms protecting other micro organism, for instance, on the gut. And how are they relate to each other? This is an interesting question. in livestock farming. Both are used probiotics are used, and that might be a problem if they promote the existence of the spreading of disease causing organisms, and we developed probiotics to be used and having a prophylactic effect and they may reduce the use of antibiotics. And that's the way both are related to each other. We explained this much more in detail -- as Mr. Rob said right before, today, we are here already in real world, and we left the word of the lab. Well, in South Africa and maybe that's not the first country, I think when it comes to livestock farming, Well, as for innovation what's important for us and what's motivating us best the feeding of the customers because innovation is not just something related to invention -- but it is about creating something close to the market marketable. And we always get a very important feedback from the market that generates demand for our products, Ecopro not only in South Africa, is strongly demand. And for us, for the [indiscernible] the other colleagues, this is extremely motivating.

[Interpreted] Well, then let's have a look at this. how this works with the good bacteria and the bad bacteria and the products developed in this area and what this has to do with our life expectation of animals and improved quality of product.

[Interpreted] Today, I would like to show you why and how we developed an innovative probiotic product that helps reduce the unnecessary use of antibiotics in poultry farming antibiotic-resistant bacteria are one of the greatest global health risks. The WHO even describes it as a silent pandemic. In 2021, more than 1 million people died as a direct result of antibiotic-resistant pathogens. By 2050, around 2 million deaths per year are expected, along with economic damage of up to USD 100 trillion. Now you may be asking, what does this have to do with animal nutrition? Quite simply, around 73% of all antibiotics used worldwide are administered in livestock farming. The problem is not potential antibiotic residues in the meat, but rather the use of antibiotics itself. The use of antibiotics, therefore, select the bacteria that are resistant. They multiply rapidly and can even pass their resistance on to pathogens. The growing problem of antibiotic resistance clearly shows human animal and environmental health cannot be viewed in isolation. That is why the WHO helped establish the One Health approach in 2006. If we reduce the use of antibiotics in livestock farming, we protect not only animals but also people and ecosystems. To contain the problem of resistance, the one health approach calls for a more responsible use of antibiotics across professional and systemic boundaries. One important point to understand is that the excessive use of antibiotics in livestock farming is not driven by therapeutic applications alone. Rather, antibiotics are often administered prophylactically or they are used as antibiotic growth promoters to stimulate animal growth. This use was banned across Europe as early as 2006 and has since been restricted in many other countries. Antibiotic growth promoters continue to be used extensively worldwide. Intelligent alternatives are, therefore, needed. This is precisely where Evonik comes in. The answer lies in a combination of specific capabilities that very few companies possess in this form. We understand biological systems. We understand bacteria, and we understand chickens from aminoacid to the microbio, our solutions holistically strengthen animal health and performance. We have been active in biotechnology for more than 40 years and have brought corresponding products to market. The combination of systems understanding biotechnological expertise and market experience enables us to develop new products, such as Eco Biopro, which I would like to discuss today. Probiotics are a particularly suitable alternative to antibiotic growth promoters. Probiotics are living microorganisms, when administered in sufficient concentrations, they can improve the health, performance and resilience of both humans and animals. In the feed sector alone, probiotics generated global sales of around USD 4 billion in 2025, with market growth of approximately 7% per year. They can be compared to a Swiss Army knife through multiple modes of action. They strengthen the gut microbiome and suppress the colonization of pathogenic germs. Evonik has been marketing EcoBio for several years. It contains pores of the strain [indiscernible] CECT5940. Ecobio strengthens the gut microbiome and prevents the spread of pathogenic germs such as e.coli, Salmonella and Clostridia. One pathogen that causes concern that poultry farms worldwide is clostridium perfringens. It causes subclinical necrotic enteritis. It typically occurs between the second and fifth weeks of life and damages the intestinal wall of the chicken. This impairs growth or leads to premature death, thereby causing global economic losses of USD 4 billion to USD 6 billion every year. To effectively prevent this disease without the preventative use of antibiotics, we need probiotics that are active precisely where the disease develops in the small intestine. This is precisely what we have achieved with Ecobiol. However, we have now once again made a decisive improvement to our product. Ecobiol PRO germinates much faster in the gut and multiplies them more efficiently than competing products. A study conducted by Oklahoma State University shows an impressive improvement in survival rates and gut integrity with our enhanced Ecobiol PRO. Chickens without contact with the pathogen clostridium perfringens, served as the control group. After 17 days, 100% of them had survived Among the animals exposed to the pathogen and receiving no probiotic, the survival rate was only 62%, adding a conventional probiotic to the feed, improved survival to 69%. With Ecobiol PRO a survival rate of 93% was achieved, an improvement of 50%. The intestinal lesions too were dramatically reduced with Ecobiol PRO. Ecobiol PRO, therefore, proves clearly superior, both in terms of survival and disease symptoms. You are probably asking yourself, what is behind this? What is the secret of this improvement? That is what I would like to explain. The foundation of our innovation is that at Evonik, we have a deep understanding of living systems. Our systems understanding enables us to explain why germination and multiplication are crucial. To understand this, it helps to look at the extraordinary life cycle of bacilli. When sufficient nutrients are available, the bacterium reproduces like any other through cell division. In this case, every 25 minutes, when nutrients become scarce, something remarkable happens. Vegetative cells transform into sports, a robust dormant forms. We utilize this process in the fermentative production of the product. Spores are heat resistant and very robust. They are therefore ideally suited for use in animal feed as the animal feed is pelleted at 80 degrees Celsius. The chicken ingests the spores with the feet in the intestine of the chicken, the spores then germinate and outgrow into active vegetative cells. Overall, passage through the gas takes between 3 and 5 hours depending on the age of the chicken. To understand exactly when and where the sports germinate, we used our unique poultry gut simulation model known as [indiscernible] The results show that the spores first end of the crop where they do not germinate. From there, they pass into the proventriculus and guest where conditions are extremely harsh. A very low pH value and the presence of the digestive enzyme pepsin, the spore survive these conditions without germinating. Germination begins only once the spores reach the small intestine, where the pH is higher because of pancreatic juice. After around 60 minutes, vegetative cells are once again present and can then exit their effect. You may be wondering why germination, the transformation back into active cells takes place in the small intestine. Quite simply because that is where feed is digested. The decisive impulses is provided by germination triggers. Free amino acids, such as [indiscernible] and sugars that are released during feed digestion. They trigger germination by activating specific receptors on the spore code. We determined that the production process, in particular has an enormous influence on the germination behavior of the sports. We also identified conditions that enable us to produce sports with particularly fast germination. Figuratively speaking, we trained the memory of the stores so that they become active, particularly quickly in the intestine. However, feed is not always the same. It differs worldwide from region to region and even between the different developmental stages of the chicken. We, therefore, tested the germination and the multiplication rates of Ecobiol PRO and several competing products in many different feed mixtures from around the world. Ecobiol PRO consistently demonstrated rapid germination and multiplication. All other products germinated and outgrew more slowly or showed greater variation across different feeds. Ecobiol PRO germinates around 46% faster than the average of competing products. This makes our probiotic an important key to healthier and more productive animals even without the use of antibiotics. Allow me to conclude with a summary. Using the current example of Ecobiol PRO, I have shown you that the scientific understanding of biological systems the chicken, but also the bacteria leads to new high-performance products. Our holistic perspective enables us to develop innovative products with reproducible effects. We were the first to determine that the production process has a substantial influence on product efficiency. At Evonik, we can optimize systems for sustainable value-adding use because we understand biological systems. However, these findings are important for not only animal nutrition, but also numerous other applications involving bassilors-based products. whether in human nutrition, personal care, oral hygiene, agricultural products or cleaning products, the scope of applications is extensive. Thank you very much for your attention.

[Interpreted] Well, thank you very much, Professor Stefan else for this presentation and insights into the universe of bacteria, microbes and biotechnology. We're going to see Stefan Pelzer later again in our Q&A session. If you want to submit questions, that's possible anytime. So please use the chat. I've seen that the first questions have already been raised. So if there is anything open don't hesitate to ask your questions right away. But first, we move out of the universe of biotechnology into the energy world. And there is 1 substance that is at the focus. And my next guest is very familiar with that. Christian Däschlein. Welcome Christian Däschlein.

[Interpreted] Well, good morning. I'm very happy to be here.

[Interpreted] Well, for you, Christian, it is also Premier when it comes to the presence here at the innovation press conference, but in the studio as well. But normally, you work at the mall side.

[Interpreted] Yes, that's right. I attend the first conference on innovation for the first time, first time in the studio. So I've seen a lot of new things over the past weeks. Well, when I came here this morning, I working Millsite I live in Herna and I had to take the A4, the motorway 40 to come here. It takes a bit longer took me an hour this morning, but I started off early, and we've come here and relaxed way was the stress.

[Interpreted] Well, that's great. So we may need some more innovation in the transportation sector. Well, I already said that you are familiar with the energy sector. There's one substance or one material that is at the center of your activities, which is relatively new. It's hydrogen.

[Interpreted] Hydrogen is not new, but it's green hydrogen that is new. Some call it as the champagne of the energy transition. What is it all about with regard to green hydrogen Well, green hydrogen champagne of the energy transition, that's a term that I heard frequently. The reason is that green hydrogen for the time being is a lot more expensive than the gray or black hydrogen. I can't use it at industry. But if we want to be resilient in our energy systems and implement the energy transition as forecasted as prepared, we need green hydrogen, and I'm going to give you some insights later on. So it's one element in order to make it possible to use green high in in the future and it's electrolysis.

[Interpreted] Well, we take a look at your presentation, and of course, we meet you then afterwards for the Q&A session. But first of all, we are looking forward to seeing how relatively and significant thing a membrane, a sort of oil may contribute to producing champagne of the energy transition at the price level of water.

[Interpreted] Many sectors can decarbonize by switching to electricity from renewable energy sources. However, this does not work in certain sectors. Please face particular challenges. For example, in the chemical industry and steel production, hydrogen is an indispensable molecule for products and processes. Climate neutral hydrogen also be needed to transport renewable energy over long distances, store renewable energy over extended periods and ultimately strengthen the resilience of our energy system. There is thus an enormous demand for climate neutral hydrogen in the industry. The global electronics market will grow accordingly. This is precisely what we are seeing, particularly in Asia. However, the major challenge still lies in economic viability. Depending on the location, climate-neutral hydrogen is still too expensive. This is precisely where we at Evonik have focused our. In recent years, we have developed a key component that enables more cost efficient hydrogen production in the first place, our [indiscernible] exchange membrane or -- it consists of a high-tech polymers, especially designed for this purpose. Global hydrogen demand is already around 100 million tonnes per year. Various studies indicate that this demand will increase to between 300 million and 700 million tonnes by [indiscernible] However, more than 98% of the hydrogen used today is gray hydrogen, this means that it is based on fossil energy sources. Depending on the production method, at least 10 kilograms of CO2 are generated per kilogram of hydrogen. Based on the 100 million tonnes signed, this represents a potential saving of 1 billion tonnes of CO2 today. That corresponds to approximately 1/3 of the energy-related CO2 emissions on the EU. This shows that producing hydrogen without generating CO2 is one of the greatest levers for global climate protection. The preferred method for producing climate-neutral hydrogen is electrolysis. It uses electric current to spite water into hydrogen and oxygen. If the electricity comes from renewable energy sources, it is referred to as green hydrogen. However, green hydrogen has so far not yet been available in sufficient quantities and is more expensive than conventional gray hydrogen. In addition to the currently excessive energy costs established electrolysis technologies and reaching their limits. They lead to either excessively high operating costs because of limited efficiency or excessively high investment costs because of the use of precious metals. At Evonik, we have developed a solution for this. I [indiscernible] ion membrane. It is a high-performance anion conducting polymer membrane and the central element of AEM water electrolysis. WHat makes AEM technology special is that it combines the advantages of existing processes without their disadvantages. In this way, we reduce both investment and operating costs. [indiscernible] is thus paving the way for the cost-efficient production of green hydrogen. Why is AEM technology so superior? First, it operates in an alkaline environment. This allows the use of less expensive materials for the electrolyzer and the electric catalysts. For example, manufacturers can dispense with costly Iridium. This ultimately leads to the lower investment costs. and that is a decisive factor for large-scale application. Such applications are being planned and advanced in places such as China, a major market for green hydrogen. Second, our membrane technology enables the efficient production of hydrogen directly under pressure. Because hydrogen is typically used under pressure, this eliminates the need for costly downstream compression stages. Third, AEM electrolysis is highly flexible. It can be quickly ramped up and down. This makes it ideally suited for operation with fluctuating electricity from wind and solar power. Realizing the full potential of AEM technology requires a polymer membrane that is both chemically stable and highly efficient. Until now such a membrane was not available on the market, developing it was technically highly challenging. It must combine 3 contradictory properties. First, it must exhibit very high ion conductivity. This is a measure of electrolyzer efficiency. It must also provide high chemical stability and mechanical strength. This is crucial for its service line. Improving one of these properties typically leads to the deterioration of the other 2. Finally, the hydrogen crossover should be as low as possible. This is crucial in preventing hydrogen and oxygen from mixing. Otherwise, an explosive gas mixture reform. This is not only undesirable, but also safety critical. This is why we started our development at the molecular level with the monomer itself. As a result, our DURAION membrane has fulfilled all the properties required by customers. It has another decisive advantage with regard to regulation. We do not use PFAS in the production of our membrane throughout the entire process, we drew on our extensive expertise in electrochemistry, material science and polymer chemistry. We had already applied this expertise in connection with our biogas technology, [ Sepura. ] In addition to the technical hurdles, there were market-related challenges during development. especially in the early stages of a new technology, there are either no users or only very few. There are no standards or norms and all methods must be developed and established from scratch. This means that it takes time for the market to develop. Because of the aforementioned advantages of AEM technology, we are confident that it will play an important long-term role in the cost-efficient production of green hydrogen and the ramp-up of the hydrogen economy. To help both the technology and the hydrogen economy achieve a breakthrough, we at Evonik have invested in a pilot plant. This enables us to manufacture our DURAION membrane on a large scale. At just under 20 meters in length, our coating lines for any on conducting membrane is best of our knowledge, the largest in the world. The recent commissioning of our plant also marks a major milestone for us. We have made the leap from laboratory scale to continuous production. This means that instead of producing our membrane manually in DINA format we can now manufacture it continuously in a roll-to-roll process and in width of up to 1 meter. The manufacturing process requires absolute precision. At the start of the coating line, especially prepared polymer solution is applied to a carrier film. Depending on customer requirements, we can optionally embed a fabric reinforcement. There still moist polymer solution or a carrier film then passes through various drying elements. Depending on how we adjust the drying conditions, we can further modify the properties of our membrane. At the end of the coating lines, the dry membrane is wound on to Ros and delivered to our customers in this form. At the current stage of expansion, we are capable of producing membranes for an electrolysis capacity of up to 2.5 gigawatts. This corresponds to 1/4 of the total electrolysis capacity planned in Germany for 2030. So how does AEM technology work? The heart of the electrolysis cell is our membrane shown here in deep purple the ion conducting membrane separates the cell into 2 half cells, the anode side and the cathode side. On both sides of the membrane are the electronic catalysts shown here in light gray, which enable the splitting of water into hydrogen and oxygen in our first place. In addition, porous transport layers shown here in dark gray are required. These transport the gases away from the cell and carry the reaction modem water into it. The cell is enclosed on the left and right by metallic bipolar plates. These conduct the electric current into the cell. Many of these cells connected in series formed a stack, the central element of the electrolyzer. As soon as current flows, water 2 is split of the cathode with electronics into hydrogen and hydroxide in [indiscernible] The hydrogen atoms combined to form hydrogen molecules H2, which are discharged via the porous transport layer. The hydroxide irons migrate through our membrane to the anode, seen here on the right-hand side of the image, where they are oxidized to oxygen the electrons generated then react once again with water at the cathode. This results in the 2 reaction products, hydrogen and oxygen in high purity. Although AEM technology is still at the beginning of its scaling and commercial use, the figures already speak for themselves. Technoeconomic studies calculate a potential reduction in investment costs of at least 25% over competing technologies. Of course, there are also competing membranes on the market. However, numerous business partners have told us that our DURAION membrane combines the properties required by the market in the best possible way. Our particular strength lies in complete backward integration from the starting molecules to the finished membrane role. This means that as a chemical company, we can adapt the membrane specifically to customer requirements, if necessary. Because we have developed not only the product but also the entire manufacturing process, we can produce DURAION on a large scale with consistently high quality. Of course, introducing a new product for a new technology is challenging. However, we are confident that we will overcome these challenges because we can draw on our experience in the biogas sector. There too, we have developed a new product family for an emerging technology, thereby contributing to market development at an early stage. As a result, we are now one of the market leaders in the biogas sector. As mentioned, it is currently still considerably more affordable to produce hydrogen on the basis of fossil energy sources. However, the current geopolitical situation, in particular, shows how quickly international supply chains can become one. It also highlights the dependence of Germany and Europe on fossil energy sources. The development of a green hydrogen economy is, therefore, a question of not only climate protection, but also strategic sovereignty from regional resilience. AEM technology and our dural membrane can therefore make a decisive contribution to building a more resilient energy system. Germany and the European Union still hold a pioneering position in hydrogen and electrolysis this position must now be defended. At Evonik, we are convinced that this can be achieved. That is why we have taken a first decisive step with the investment in our pilot plant.

[Interpreted] Thank you very much to Christian Däschlein for this presentation related to the [indiscernible] transition and Christian Däschlein, he will be available during our Q&A session as well. So if there are any questions, you may rise it already now. I pass over to the topic of recycling, and we pass from the topic of cases to another material to oil. Purely oil and cashline very welcome to you. It was easy for you to come here this morning. We had some problems with transportation. It's a premium for you

[Interpreted] Well, there was not a lot of traffic this morning about the studs completely new, brand-new Well, I'm in charge of recycling plastics, old plastics boneless, sometimes spartan new things and new materials. -- recycling old things, old materials, that's the topic.

[Interpreted] And I mentioned the topic of pyrolysis oil. Many people may not know what this means and what it stands for. What is this? It's just the liquefying of plastic, all those who have a overtone, not function, the feature of purely for clean our on and chemical paralysis is just -- it works without excluding oxygen, instead of burning things or liquefying it, that's how we generate a new raw material to be used in later subsequent manufacturing processes. Now we refer to big industrial equipment like steam crackers and similar equipment. And the process of paralysis might be easy on an oven in your kitchen. But on a large scale, there might be other problems with dirt and how Evonik can help to find solutions, Mr. Rasch will explain to you now.

[Interpreted] Used plastics are not waste, but rather a raw material. Nevertheless, enormous quantities are still lost mainly through incineration and landfill disposal. As a result, there are increasing political initiatives worldwide to bring more plastics into a circular economy through recycling. More on that later. How big is the problem? Based on current assumptions, more than 400 million tons of plastics are produced every year. Yet today, recycled raw materials are reused for less than 10% of this amount. A large proportion is therefore not recycled. That is an enormous waste of resources. One promising technology for recycling, even heavily contaminated and mixed plastic waste is pyrolysis. The starting material consists of plastic flakes like these. In the pyrolysis process, the long hydrocarbon chains in the plastic are thermally broken down and converted into a liquid oil pyrolysis oil. In principle, this oil could serve as a raw material and replace petroleum-based raw materials or fossil naphtha. However, the oil contains various impurities because of food residues, mixed plastics and additives. This means it cannot be used directly in a steam cracker as a replacement for petroleum-based raw materials. European steam crackers are multibillion euro facilities that have been optimized for specific naphtha qualities over decades. But more precisely, the pyrolysis oil matches the respective steam cracker, the higher the yield. This both reduces environmental impact and improves economic viability. The central challenge is, therefore, figuring out how to upgrade contaminated pyrolysis oil so that it can once again be used on a large scale as a basis for new plastics. We at Evonik began addressing this question more than 6 years ago. Our advantage was that although we do not operate pyrolysis plants ourselves, we are specialists in processing raw materials for petrochemical applications. We, therefore, have extensive expertise in processing naphtha products for use in steam crackers. Our products have long been used to selectively remove impurities from oils in petrochemical processes. These substances called absorbance, specifically bind impurities. The process began with intensive analysis, comprehensive literature reviews, conventional laboratory testing and extensive experimental series. This made it clear which approaches might be used to effectively separate the various impurities with the aid of absorbance. What exactly are these impurities? Our analyses have shown that pyrolysis oils are more commonly contaminated with chlorine compounds, other halogens, silicon, heavy metals and nitrogen compounds. These unwanted substances cause considerable problems in petrochemical plants. For example, they can damage catalysts, cause corrosion in plants and impair product quality. Without targeted processing, the use of pyrolysis oil would therefore remain limited to small dosages. Our colleagues at the site in Little Rock, Arkansas, took on the challenge of developing a tailored solution for this. As a first step, they focused on absorbance that had worked well in the purification of conventional oils. However, it was not possible to sufficiently bind the organic chlorine compounds in this way. They were too big for the cage as the colleagues put it. Because of their sheer size, these molecules did not even reach the binding sites of the absorbent. The decisive step was to combine catalytic and absorption functions in a single product. This combination converts the organic chloride compounds into simpler inorganic chlorides. These are easier to find and can therefore be reliably removed. This innovation is now marketed under the product name Purocel 505. Here is a schematic illustration of the purification process using Purocel 505. The pyrolysis oil is fed into the top of the absorption vessel. When the hydrocarbon chains contaminated with chlorine come into contact with our Purocel, the chlorides are separated off in a catalytic reaction and absorbed. This allows more than 2/3 of the contamination to be removed. However, the right chemistry is not the only important factor for operators of pyrolisis plants. What matters is that solutions can be integrated easily into existing facilities. It was therefore clear to us but our innovation to be particularly successful in the market, it had to work without major investments or lengthy conversions and shutdowns. That is precisely why we developed our [ ROCKIT ] system. This modular preassembled purification units can be integrated flexibly into existing infrastructure without major conversions or lengthy shutdowns. This lowers investment costs reduces operating costs and facilitate the adoption of pyrolysis oil. This system uses Purocel 510, a product based on the aluminum or bauxite which is also recyclable. In applications with particularly demanding requirements and additional hydrotreating step follows in this process, the remaining impurities here alongside the chloride shown by yellow or silicon shown in green, are removed via the gas phase through the use of hydrogen at high temperatures. This makes the oil more stable and thermally robust. That is a prerequisite for use in steam crackers that produce raw materials such as ethylene or propylene but now with the attribute recycled. The recycled content in the plastic product is verified and certified through mass balance accounting. Evonik deliberately positions itself in chemical recycling as a systems partner. We do not offer a single solution for a special case, but rather a modular system for different plant sizes and process requirements. You are already familiar with the [ ROCCAT ] system. The adsorbents are ideally suited for use in smaller facilities, alternative purification options such as hydrogenation, would involve excessively high investment costs and would not be economically viable. For larger scale facilities, we offer 2 complementary technology solutions. First, the efficient removal of selected impurities. And second, integrated solutions such as hydrogenation catalysts. This is then economically viable. This means Evonik is well positioned to meet the growing demand for chemically recycled materials. Some of you may now be wondering where these growing markets actually are is recycling only a European topic. Clearly not, both the U.S. and the large parts of Asia have launched legislative initiatives to advance chemical recycling. For example, China recently launched major programs to expand plastic recycling. By 2030, 20 million tonnes of plastic are to be chemically recycled each year. In the U.S., alongside voluntary commitments by industry, there are various legislative initiatives that rely on chemical recycling. And in 2025, the EU introduced regulations for not only single-use plastics but also the automotive sector. These stipulates that from 2032 onwards, new vehicle types must contain at least 15% recycled plastic from 2036, this will increase to at least 25%. Alongside mechanically recycled materials, chemically recycled materials can also be used here. For example, in safety-critical applications, such as brake lines. What does this mean for industry & society? First, there is the effect of sustainable innovation. We replace fossil raw materials with existing materials. This benefit [indiscernible] fits the climate because plastic waste is not incinerated, and less crude oil needs to be extracted. In addition, it strengthens the resilience of our industry. In the coming years, will come under economic pressure because of declining fuel consumption. However, they are indispensable for the production of starting materials for medicines, plastics and everyday materials. That is why it is important to preserve them. With the growing feedstock stream from pyrolysis oil, the petrochemical industry gains access to a defossilized petrochemical feedstock stream. In recent months, we have also seen how strongly the global economy depends on individual regions for certain raw materials. But we could become more robust and independent by supplementing fossil raw materials with materials already circulating within our own economy. This makes us less dependent on fluctuating imports and uncertain supply chains. Of course, the solutions of Evonik and will not achieve this. But they are an example of how sustainability and resilience can be considered and implemented together along key value chains.

[Interpreted] Well, and now you've seen our 3 business cases from innovations at Evonik. Thank you in the [indiscernible] for the last presentation. And now we get together again with the entire innovation, power and competence of Evonik, and thank you for being back for Q&A session. And now it's time for questions. We've received some questions, but I can only challenge you to submit additional questions. that we put to our experts steps why we're here. We've got LinkedIn and YouTube as well where this event is also streamed. So if you have questions on these different channels, so please don't hesitate to submit. But as I said before, we have already received some questions and well, that was to be expected. Lauren, that there are some questions to the Board of Directors and looking at the entire innovation segment. Well, [indiscernible] initial cost has come up with the question. What's the percentage rate of F&E investment, R&D investment goes into Germany and in which country you invest most?

[Interpreted] Well, thank you for the question. Of course, as a company based in Germany, a large share of our R&D investment is allocated to the German sites. But we are a global player and we play in the area of transformation. Transformation is something that challenges us everywhere in China and the U.S. We've seen some examples today. And we do that specifically in ecosystems that drive these changes technologies. We need to be on site. We need to be in those regions and countries. And Christian, maybe you can explain a bit more in detail what it's like in innovation.

[Interpreted] Well, I would like to hear your echo and Germany remains one of our centers or the core piece of innovation and that is going to continue in the future. Because in Germany, we've got an incredibly strong scientific setting that we can use alongside the fact that we have a very strong team in Germany and Europe that we want to be building our activities on -- but all the topics come into Europe, the best on the European legislation make us fit for the future. They give us some impulse that will then be translated into growth and innovation. And we've seen research development and -- we've seen that the market is not in Germany, but we've developed indulgence. So we can transfer the technologies into other regions in the world. And that is the point that needs to be taken into consideration. That's why it makes sense to sustainably do research and development here in Germany. Another point I was mentioned and that I would like to support is, we need to make sure that in other ecosystems, we remain close to the market. So it is internationalization, where we need vicinity to the markets. Market and technology need to be on site. Therefore, we have expanded our activities in the different hubs. We've built up new hubs. We just mentioned Mumbai in India, and we've got the hub in Boston, where we go deep into new ecosystems that again, generate growth. We need to be close to our customers, close to the decision-makers and that leads to growth. And then, of course, it strengthens the economic side of Germany that is crucial to us as a consequence. So we need to be active in both elements. You need to find a good balance. I don't want to talk about numbers, but it needs to be clear to everyone that we have and will have a strong basis in Germany and in order to answer your question, this was the case in the past. This is the case today. And going forward, we see that this is going to be the case in the future as well.

[Interpreted] Well, that's the -- I hope it's a good answer to a Muni from Ratos. Jonas Jansen, we intensely studied the press review that we published. And he said, well, here I read that the researchers built upon internal and external knowledge within Evonik and at a later point in time, they the innovation process. Christian, I think it's a question for you. Are you using AI and the critical second question, could we assume that this means that you are not interested in very expensive fundamental research.

[Interpreted] Well, that's like 3 questions. Let me start with the last question. Fundamental research, is a core element of our research competence that we want to develop further. We do so differently than in the past. It's not about withdrawing from Deep tech, but we look at it differently. We want to do things differently. And we've seen the example of the innovation factory at Evonik, where we step in later, but we still do detect. So we start at a higher level of technical maturity because we hope and we assure that we can then scale up things faster. So it is a further development based on a different level of maturity where we enter into the process. So we still have deep tech, which is still part of our DNA of the R&D community. And you see that when you look at different examples as well. Of course, there is the expert immunity, the [indiscernible] community that is connected within the European German science community in the scientific landscape and environment. Many of these scientists work as professors at universities ecologist. So we want to combine our knowledge expertise in a combinational way and use it in order to get impulses for our development. For R&D, once more, we step in later at the point in time when we know that we can scale it up and that is a topic of a derisking approach rather than withdraw from deep tech. There's an additional element that I would like to mention. And that means that, in particular, via our venture capital activities, which are also crucial a permanent element in our activities. We try to recognize and identify trends in the market and ideas early on, and we used the combinatorial aspect once more in order to develop new solutions and bring them in the market. When does something is transferred into the innovation factory when we get a higher level of maturity or when we see a larger opportunity to have an industrial realization of that. Second question, AI. Well, I the role of AI in what we do. We separate AI from the reduction of staff. We want to be faster, better. We want to build up expert systems. I mentioned some of them. There are others that have an even broader approach, [indiscernible] sphere, for example, that we are advancing within the company, within the business in order to make tech faster, better and create expert systems in order to be more efficient at a broad level and scale things up faster. So AI should not have and will not have any influence on headcount. First question. are we internally immune as RD&I organization as a research organization when it comes to reduction of headcount, no, of course, not. But let us note once more and Lauren will probably confirm it. We take note of the fact that more than EUR 400 million, EUR 420 million that we want to spend into research and development. And that does not contain the important part in all the businesses which in their business application close to the sales function also contribute to innovation.

[Interpreted] Let me take another question because it fits perfectly, and that's exactly the point that was just mentioned. Also from Camino Engineering News asked and we transferred that English question into German. It's directed to you, Christian. Thank you for your presentation. But we would like to pass that question on to Lauren now.

[Interpreted] AI, the role of AI for innovation antimonic not only scientific analysis but also to support innovation, decision-making the company finds in the third year of a program to reduce thousand headcount, it's even 2,000 headcount that Ionic wants to reduce its headcount by over a period of 3 years. And as color specifically how many of these posts are in R&D, how many headcount reduction in R&D and will AI enable you to cut headcount. Well, taking the bigger perspective, we are under pressure. The market economy is not fun right now. And that is not only true for us as Evonik. It's true for many markets and many supply chains and many value chains, we find that we are under pressure. Of course, it's a lot simpler to invest if there is some tailwind when there is sufficient money that flows into different directions, and that helps you to allocate it into different areas. But the only way to grow is to advance innovation to drive innovation. We know that we need to do that more specifically with our investment, with our decision-making, we place we allocate our funds into the right opportunities. So of course, it is not only it is of by innovation Well, even in innovation, it's a real time, we need to be highly resilient. We need to be very smart in our decision-making. And AI supports it. It supports our decision-making, which gets faster the ground for more options. And we see that in many areas and not everywhere. I can't say that our entire innovation chain, is driven by AI at 100%. Now we see that in different bubbles, so to speak, that AI plays a role, and we see in what way AI supports us to find faster round for new biotech synthesis. For example, we need to be competitive with people, with colleagues within competition, and we need to use AI as the competitors use AI. So we need to keep working on that. We are not immune to the environment and the macroeconomics. We need to be fit for the future, and we need to be able to say no. So we go more into the direction where we can move things on-site with areas where we are relevant and we can make a difference.

[Interpreted] Thank you, Lauren. And Christian makes your life easier if it was not true for innovation, but it's part of the entire universe and it's part of the entire business. Jonas Jansen has got a follow-up question regarding the numbers. I think, Christian, you should take that question. regarding the EUR 300 million share of the EUR 1.5 billion, is that the same amount that you had allocated also for [indiscernible] or that increased, an increased amount. The EUR 1.5 billion had already been communicated. That was a number that was already known to the market.

Well, let me try to give you some insights. Creavis before had no Well, it was about new products in new markets. The risk profile, therefore, was a different one. And therefore, for our [indiscernible] has not been allocated any expectation regarding revenue because the development cycles were clearly longer with the new approach in the ionic innovation to reach to be faster in the market to say that within 5 years, we want to have viable products for the market. That increases the aspiration. The claim to the Evonik Innovation Factory to contribute to the revenue. So the EUR 300 million is new. It's an additional promise to grow which is to be generated via the Evonik innovation factory. Will that lead to a scenario where we say that we want to go beyond the EUR 1.5 billion?So EUR 1.5 billion plus EUR 300 million, I would rather say no, because we find ourselves in difficult troublesome times together as a team at Evonik, we need to make an effort in order to meet our growth expectations. By 2030, this EUR 1.5 billion. Therefore, the EUR 300 million help to be more resilient, and I would like to focus on that term once more to make a contribution to that overall EUR 1.5 billion in the 3 areas that we mentioned, but that implies and this is true that all the programs that we are currently running at the factory. They have a direct 100% linked with the innovation growth areas, IGA. This is the ones that account for the EUR 1.5 billion. So that's energy transition advanced biotech and the third area that was mentioned as well. And with all 3 innovation growth areas, we want to have the leverage for this EUR 1.5 billion and one contribution will be the Evonik innovation factory.

[Interpreted] Well, thank you very much. And very in a short moment, we'll come to the specific questions, but first, I pass on to Lauren once more London and our chemical SG talked asked about China. China develops very quickly into a power center for innovation at low cost. How can Evonik protect their customers? Maybe a question to both of you, and then there is a follow-up question regarding corporations, combinatorial innovation that we take afterwards.

[Interpreted] China has a strong chemical industry as well. We have been investing during a long time in strategic strategy we are producing there in the Americas, the third tier in Europe in the U.S., than Asia. So we are a part of this very strong and efficient chemical industry in China as well. And there are interesting and very intelligent and smart people everywhere in all the countries. Maybe their teams are working differently yesterday, for instance, we've been talking about carbon capture required in the U.S., by the U.S. policy. Well, they have their inflationary Reduction Act and for an ecosystem like this, we take this into account, or we talk about hydrogen. And here, we made a clear statement. The Chinese state made a clear statement. They wanted to invest in this, and that's why we go there. And I would say, I would say that makes us stronger, that makes us competitive because the intensity is the same everywhere. It's not always fun, but it's our job and our task. And I think -- so we are here in Europe, and I'm grateful to see that there is intense competition and Evonik in this process of transformation will play an important area. So no fears about China and working there but a smart approach. As for China, let me give you an example and what to understand what it means and how we will work with the innovation factor. We have a lithium-ion battery center in China, cooperating with our partners and customers. And [indiscernible] to the extent that this year, now we can translate this in concrete business. This shows that the impelligence coming from the regions are perceived by us, and that's why -- this might make an important contribution to our business. And this refers to this lithium on battery center special

[Interpreted] Question from Nynas well. As for consolidation and cooperation -- he says, well, it's said that Europe and the future will have less chemical industry there will be a consolidation and a strong cooperation between different industrial companies. But to what extent a corporation like this is realistic. for instance, along with both companies in a certain amount of time, separate from each other -- and when their own way. I would say that's a good example. This partnership between DSM and Evonik was challenging for -- so a new application, a new market, a different value chain -- so we try to make a solution for the future out of it. We did this together. TV is running well.

[Interpreted] I would say may have the technology. Another 1 has an entrance and access to the market, and we should bring or can bring both things together. And then we have the chance to bring technology faster to a marketable solution and to the market. I think we need more of this instead of less. As Christian said before, we need our academic expertise as well in terms of technology. We need to develop prototypes faster and we have to scale up things faster, and we need these ecosystems. And I think [indiscernible] this is a good example. So combinatoric innovation on the one hand and the pressure of consolidation does not exclude one each other.

[Interpreted] Before coming to the 3 specific technical presentation. A question from Mark Ram from Camp Manager,right. It just came back from the U.S. room for a part of Evonik opened their business there. MAA business. And they implemented to lead our technology there. That was a topic addressed here at our innovation press conference. And this kind of an innovation last many years, you have to make used investments. So Ivan, will they have the financial means to do this kind or to promote this kind of innovation. Second question, what kind of support I say subsidies for R&D pilot plants would be needed in order to develop sustainable technologies in Germany?

[Interpreted] So just to comment as for Roman and Lima well, I've not been side, unfortunately, at this inauguration. But my congratulations to [indiscernible] it's really challenging an investment like this. But they did it and they team, and that's another good example that shows that in these times, you have to keep on investing. I would say that at Evonik, what do we talk about? We talk about budget, budget for innovation. We talk about innovation, but it's always related to CapEx CapEx investment. I would say there are less investment in existing already existing technologies because macroeconomics does not permit this to utilization of capacities try of 80% and will unite to invest immediately in the next new equipment and systems. But once it is about a new technology, you have to scale it up. Let me give you an example. Today, we still have [ EUR 700, 800, ] of investment in CapEx. And this -- it's not only for maintenance of existing technology. This is invested in new technology as well. We will keep on driving this and focus on this. So it's about existing technology, but it's about new technology, and it's about scaling up new technologies as well. This is what we see, and there are several examples. Our biotechnology plant in Slovakia. We will expand this plan further in 2024, we had the first [indiscernible] production there, and we'll build up our competence center further. And there are further investments to be done generation in order to support next-generation carbon technology, a perfect example. We have been talking about this at our Innovation press conference and well, that's something we did from the lab to a big industrial plant here in Europe and industrial production.

[Interpreted] Just to complete this what we want to do, and I try to explain it in the frame of my presentation. At an early stage, we want to see, can we scale up once we see we can scale up, then we'll have and make available CapEx. So we'll have this idea at an early stage, we'll implement this at an early stage. And later on, this will help us to provide the needed financial funds because we want to grow, and that's a decisive point. Second point, we've been talking about the topic of funding several times and we know that funding is essential. At an early stage, when you build up pilot plants, which are not profitable at this moment of time. But we have our own team within R&D, and they are in charge of the topic of funding as well. So they have the expertise in terms of funding. So we do not have only expertise in R&D in this area. But in funding as well, we know where to apply for subsidies, state funding and there's something to be considered as well. So I think my [indiscernible] I want to know how about beside of the offer not only the demand. You always can do more also.

[Interpreted] Now you may relax and have a break because now we can pass over to the topics of the 3 presentations Christian, let me begin with you and the membrane technology first technical question addressed to you by Olivier. How do they plan to do the go-to-market for the AM. Is there any context with Evonik group other industrial companies, AB or is there any potential buyer for this technology already?

[Interpreted] Very important question. Currently, we are introducing this into the market, and what I cannot mention detail our partners. But what I can say is that globally, we are in contact with all the relevant players and stakeholders with the big ones, the well-established ones, but we are in contact with start-ups, smaller companies, new companies. And with many of these companies, we are mounting first demonstration projects in order to check the performance of the system. It looks quite well. We're right in the middle of market introduction. You may buy the membrane already if you want to do so you can do so let's see how what the press and media representatives think about this idea and suggestion. Well, the 3 examples to mention they are strongly related to innovation, and there is always a matter of being close to the market and making it marketable.

[Interpreted] And Luis has a question pipe and profile exclusion. How about your time planning -- the time line up to the commercialization.

[Interpreted] Currently, there is still a pilot plan, but how about the next step and when the next steps will be done. Can you give us some further explanation where we have clear targets. For this year, our targets are very clear. Our sales targets are very clear. So the market ramp up for the hydrogen economy, but this is still ongoing. And looking into the future, it's not that easy. So it's always looking into a crystal ball. But all those working in the field of hydrogen, we hope strongly that this will ramp up strongly in the next 2 or 3 years. Second question, the plant, our pilot plant currently enables us, allows us to produce high volumes up to 2.5 gigawatts of electrolyzers performance if you calculate this per actualize volume per square meter it's a lot, and this will drive our activity during the next year. So the next step us will be horizon 2, 3, 4 years, then we'll do the next investments and to spend this business further.

[Interpreted] There is another very concrete question, you have been talking about capacities and there's a gentleman from Robb. So what's the maximum pressure for the membrane.

[Interpreted] That's a very good question. I just tried to explain it in the frame of my presentation. Well, as I said, hydrogen is always used under pressure. And if I do not produce under pressure, then I need further compression stages. That costs further money. That's something I want to impede. And what I can say is that -- so in the last year, during 1,000 hours, we tested the membrane under a pressure of 35 par related to during shorter times with higher pressures. But well, last year, 35 bars during thousands of hours and it worked out perfectly.

[Interpreted] That sounds great. That's best over from the membrane. If there's a further question regarding the member then I suggest to be to the topic of the pyrolysis oil Hendrik. William Derk has another question of William Dako know how to pronounce his name Evonik do the work on the treatment and recycling of plastics before purses density of VR infrared and so on.

[Interpreted] Well, we have to understand that Evonik as a chemical company consider ourselves as being an enabler -- we are not a recycling company. We enable our customer recycling industry to produce better products to remove impurities in a better way -- we do not have any direct recycling activity. But well, we need to come and understanding. We need to know what kind of flow of materials we have, pure, clean materials in order to optimize flow of materials. And very often, we talk about ecosystems circularity, very important. So once you develop a product, once the designer product, you have to think already about the end or take into account the end of its life cycle.

[Interpreted] Yes, William Doha another question. per license or many companies have different properties. They have different materials. So this process, can it treat any kind of materials, including VAC containing materials.

[Interpreted] Good question. We tested many purely oil. So that's due to the factor that out there in the market. There are different technologies. I think during the next years, the market will be consolidated. But well, have different technologies, different raw materials. And according to this, you have different pyrolysis oil. So we have a kind of a toolkit. We provide different solutions and the effectiveness for different impurities like halogens this must be considered. Well, you have to know the properties of the different materials.

[Interpreted] Swin had a questions from India will just be linked in Temex limited relate is that a continuous process or -- is it possible to use it as a batch?

[Interpreted] Well, when looking at the pilot systems, then these are batch processes simply because we want to try and look at the different duration stages to make the process more efficient from the pilot plant to the commercial plan, there will be a permanently continuous process, which means the different technologies are aligned to one permanent process and as a result of the impurities in the raw materials, you also need to provide for some shutdown the 8,600 hours that we know from lubrication systems cannot be used for pirolysis as well, but we think between 7,000 and 8,000 hours of operations per year will be feasible.

[Interpreted] And then to the economic efficiency in the market, there are some questions here that is always interesting Bertin from sustainable plastics asks what is the demand like for your severance for pyrolysis oils? What can you tell us about the demand?

[Interpreted] Well, we have been looking into the market for the past 5 to 6 years when we realized that the narrative but the politics goes into that direction this year. We are strongly supported independently of the geopolitical situation, there are clear targets for the packaging market, for the automotive market that have been communicated. And we talk about the amount of more than 10 million tons of recycled materials and plastics in by 2040. So it's a big cake for mechanical and chemical recycling. And very early, we have positioned ourselves in these markets. We tested different oil. So we know about the variability, the problems that the businesses have with and our portfolio is rather broad. As for hydrogen, we see that these targets will take effect in 2030, 2032. This is now time for investment, and therefore, it's known that we are important that we are known that our targets are understood and that we can contribute in the different systems that are being set up.

[Interpreted] And there's a second question from Beatrice Santos which moves away from your direct topic. Or maybe it's Christian, who should answer regarding partnerships, we come back to the combinatorial innovation. How does your partnership with [indiscernible] in the area of chemical recycling of PET develop? Would you like to take the question?

[Interpreted] Well, it develops slowly. We would love to speed it up PET recycling is a very difficult environment, commercially difficult environment or it's a challenge if I may leave it at that. Well, we've outlined that early on that you need to focus on what is in high demand and you need to focus on market developments in order to make sure that you don't develop something away from the market.

[Interpreted] Let me take a look at my questions. There is one open question here, popping up. To Stefan Pela via YouTube, I don't know who has submitted the question 2 years ago. You talked about the importance of micro by tubes. Coil is just one type. Wouldn't it be better to have a dual system or something that is more effective?

[Interpreted] Well, excellent question. and certainly a possibility to approach the area alternatively. But we have generated so much knowledge by Ecobiol PRO regarding the mechanisms of impact that we always surprised how manifold that Swiss Life is when it comes to the microbiomes and to put them into a well-balanced health situation that is positive health situation -- it's pushing out pathogen micro organisms via digestion of certain substances that is more effective. So we're quite happy about the different properties and capabilities of our Ecobiol and Ecobiol Pro, which acts even faster. So it can never be excluded that going forward, a consortium approach goes into that direction. And of course, if you read our press releases thoroughly, you know that we also prepare activities in this area and get funding for that, but we are very happy with Ecobiol PRO. We get positive feedback as mentioned when we introduced a topic. Our customers tell us that this is a new level of quality and new level of our understanding around in the probiotics in combination with the microbiotics in the intestines and that, of course, has a positive impact on the performance of chicken. And that's outstanding with you already tell us that there is going to be something else coming up, then you will also participate in the fourth addition of our press conference on innovation because there will be results from biotech as well.

[Interpreted] There is another question on AEM. Let me quickly check the question from France from the university environment, a student from this AM electrolysis has historical changes regarding the robustness of membranes at high-density currents. Can you give us some insights into the materials that you use in order to prolong the life cycle of your membranes and can you compare that to the current state of affairs regarding the PEM technologies.

[Interpreted] Well, that's a very broad question. Well, no, it's a simple question, actually. But I can't give you any details, of course, when developing the membrane and the chemicals and materials, we have really made sure that we can cope easily with those challenges. -- life cycle stability, electrochemical performance of the member. And these have been the main challenges regarding the analysis -- and as I said some years ago already, we started with our polymer know-how [indiscernible] specifically, we developed a system that has all of these properties.

[Interpreted] But what it is chemically in detail?

[Interpreted] Well, unfortunately, I can't give you any details on that. Well, this is the student curiosity that we find here are very appropriate. But of course, there are some things we can't disclosed, that's the know-how that you need to keep confidential, and we talked about that earlier.

[Interpreted] Well, I think all questions have been submitted and answered. It was a wide portfolio, a broad portfolio of questions. Thank you very much to all of you that you have presented to you different topics and that you've been here for answer questions. And thank you your view for answering so many questions after your short presentation. Thank you for attending this press conference on innovation. While it seems that there are no further questions. Thank you very much to all of you. Thank you very much to anyone who has contributed to the success of this event, our editing Chief Mr. Karas, but many helping hands behind the scenes in Backstage. I was great fun. And I think he worked fine. I hope you've enjoyed it and to the journalists out there. Thank you very much for your time and for attending this press conference. We're very, very curious to get the media feedback that we will see. And of course, with our communication teams, we are always ready to help you out if you've got additional questions, if there's anything that's not clear or if you need further information, we will pass you on to competent mines. We've got plenty of experts here at ironic. Therefore, my recommendation to all of you. So strengthen your personal resilience as well. I wish you a good week. Have a good day, and goodbye from Evonik. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]