Evonik Industries AG VP-Sr Credit Officer...of its products, including DL-methionine, super absorbents, silicas and polyamide 12. Performance Materials, which include C4 chain intermediates

CORPORATES

CREDIT OPINION23 June 2020

Update

RATINGS

Evonik Industries AGDomicile Germany

Long Term Rating Baa1

Type LT Issuer Rating - DomCurr

Outlook Negative

Please see the ratings section at the end of this reportfor more information. The ratings and outlook shownreflect information as of the publication date.

Contacts

Martin Kohlhase +49.69.70730.719VP-Sr Credit [email protected]

Matthias Hellstern +49.69.70730.745MD-Corporate [email protected]

Frederic Massard +49.69.70730.900Associate [email protected]

CLIENT SERVICES

Americas 1-212-553-1653

Asia Pacific 852-3551-3077

Japan 81-3-5408-4100

EMEA 44-20-7772-5454

Evonik Industries AGUpdate following change of outlook to negative

SummaryThe Baa1 rating of Evonik Industries AG remains weakly positioned, which has been reflectedin the outlook change to negative. Moody's-adjusted gross leverage has been in excess of 3.0xeven when taking into account the redemption of €500 million of debt in April 2020. Despitea number of measures that boost EBITDA, such as the acceleration of a multi-year efficiencyprogramme, synergies from past acquisitions, as well as the $60 million contribution fromPeroxyChem, Moody's expects EBITDA to reach €1.9 billion at best leaving 2020 gross leverageelevated at around 3.7x. The effects from the coronavirus outbreak have an uncertain impacton the strength of Evonik's financial profile recovery.

Evonik's rating factors in the exposure to more defensive end markets such as food & animalfeed, consumer & personal care, pharma & healthcare. Still, the company has between 15-20%automotive & mechanical engineering exposure. Moody’s expects transformational changes inthe automotive sector to result in persistent pressure.

The liquidity profile of Evonik remains solid. Evonik at 31 March 2020 reported cash and cashequivalents of nearly €1.0 billion in addition to about €1.0 billion of short-term marketablesecurities. In addition, Evonik has access to a €1.75 billion revolving credit facility due June 2024and currently undrawn.

Exhibit 1

Leverage and Coverage Metrics

2.2x

3.4x3.2x 3.3x

3.4x

1.1x1.4x

2.7x 2.8x

2.3x

0%

10%

20%

30%

40%

50%

60%

0.0x

1.0x

2.0x

3.0x

4.0x

2015 2016 2017 2018 2019 2020e PF 2021e

Total Debt / EBITDA Net Debt / EBITDA RCF / Net Debt (RHS)

Note: 2020e on a pro-forma basis excluding the newly bond issuance of €500m. We assume that the proceeds will be used torepay the €650m bond due in March 2021.Source: Moody's Financial Metrics™

MOODY'S INVESTORS SERVICE CORPORATES

Credit Strengths

» Solid business profile characterised by leading positions in growth markets, strong technology capabilities and extensive end-marketdiversification

» Future earnings and cash flow generation to benefit from incremental contributions from acquisitions and organic growth projectsas well as a continuous focus on operating and capital efficiency

» Normalisation of annual capital investment of €850 million to support neutral to positive FCF following investments in organicprojects

Credit Challenges

» Timely delivery of targeted acquisition synergies and cost savings from ongoing efficiency initiatives

» Repositioning of credit metrics in line with our rating guidance for the Baa1 rating

» Developing the group’s growth strategy successfully while maintaining conservative financial policies

Rating OutlookThe negative outlook reflects the weak positioning in the Baa1 rating category and the expectation that it will be very challenging forEvonik to achieve the required metrics, debt/EBITDA below 2.5x and RCF/net debt or around 25%, to maintain the Baa1 rating withinthe next 6-12 months.

Factors that Could Lead to an Upgrade

» A sustained uplift in EBITDA margin (as adjusted by Moody’s) above 20% underpinned by the enhanced resilience of the group’sbusiness portfolio

» A permanent improvement in financial profile evidenced by total debt to EBITDA sustainably below 2.0x and RCF to net debt in themid to high thirties in percentage terms

Factors that Could Lead to a Downgrade

» Severe deterioration in operating performance and/or more aggressive debt-funded acquisition strategy

» Failure to consolidate financial metrics and bring total debt to EBITDA close to 2.5x and RCF to net debt around 25%, leaving asidecurrent upward pressure on pension obligations amid historically low discount rates

Key Indicators

12/31/2016 12/31/2017 12/31/2018 12/31/2019 3/31/2020(L)

Revenue (USD Billion) $14.1 $16.3 $15.7 $14.7 $14.5

PP&E (net) (USD Billion) $7.0 $8.5 $8.5 $7.9 $8.0

EBITDA Margin 18.2% 15.9% 16.0% 16.6% 16.4%

Return on Average Assets 8.0% 6.6% 5.7% 5.7% 5.4%

Debt / EBITDA 3.4x 3.2x 3.3x 3.4x 3.6x

RCF / Debt 12.5% 14.6% 20.2% 11.4% 10.5%

EBITDA / Interest Expense 11.4x 9.6x 9.3x 12.1x 12.3x

Note: All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.Source: Moody's Financial Metrics™

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page onwww.moodys.com for the most updated credit rating action information and rating history.

2 23 June 2020 Evonik Industries AG: Update following change of outlook to negative

MOODY'S INVESTORS SERVICE CORPORATES

ProfileEvonik Industries AG, headquartered in Essen, Germany, is the holding company of the Evonik group, one of the leading European specialtychemicals producers. In 2019, Evonik reported revenue of €13.1 billion and EBITDA of €2.15 billion, equivalent to a margin of 16.4%.

Evonik has production facilities in 26 countries (with a significant share of production assets in Europe) and benefits from a high level ofvertical integration (Verbund). After a strategic reorganization its activities will be organised around four divisions from 1 July 2020:

» Specialty Additives. €3.4 billion of sales and an adjusted EBITDA of €884 million in 2019. Products include coating, polyurethaneand lubricant additives.

» Nutrition & Care. €2.9 billion of sales and an adjusted EBITDA of 461 million in 2019. Key products are amino acids, drug deliverysystems, cosmetic ingredients.

» Smart Materials. €3.4 billion of sales and an adjusted EBITDA of €649 million in 2019. Among products are silica, hydrogenperoxide, catalysts and polyamide (PA12).

» Performance Materials. €2.6 billion of sales and an adjusted EBITDA of €248 million in 2019. Products include C4 derivatives andsuperabsorbers.

On 23 June 2020 Evonik had a market capitalisation of around €10.8 billion. It is 58.9%-owned by RAG-Stiftung - a foundation set up tofund legacy costs relating to the termination of RAG's mining activities from 2019. The annual cash-out to be incurred by RAG-Stiftungis expected to be around €220 million compared to the dividend payment of around €345 million it received from Evonik in 2019.

Detailed Credit ConsiderationsEvonik's business profile enhanced by acquisitions, divestments and organic growthAcquisitions, divestments and organic growth projects in the past decade have made Evonik's business profile more resilient as activitieshave shifted more towards speciality chemicals, accounting for about 80% of group EBITDA. This was demonstrated with the divestmentof the MMA business in 2019 and through acquisitions. In 2017 alone Evonik closed three acquisitions - Air Products’ Performance MaterialsDivision (APD) for €3.5 billion in the field of specialty and coatings additives; Dr. Straetmans for €100 million, a producer of alternativepreservatives for the cosmetics industry; Huber Silica’s portfolio for around €600 million, focusing on dental and life science specialties -and the acquisition of PeroxyChem, a producer of hydrogen peroxide, persulfates, peracetic acid, for an enterprise value of $640 million,that closed in 2020. In total, the portfolio realignment resulted in less cyclicality and less asset- and capex-intensity. The EBITDA margincontribution of acquired businesses averaged 22%. We expect Evonik to take advantage of M&A opportunities to further grow andcomplement its existing business, in particular in Specialty Additives, Animal Nutrition and Smart Materials.

Evonik's business profile is well underpinned by the significant size and strength of its chemicals franchise. It is well-diversified in termsof end markets, with main exposures to the food and animal feed, consumer and personal care, pharmaceuticals, automotive andconstruction sectors, as well as to the chemicals industry, producing intermediate products used in the production of optical fibers, plasticsand rubber. It does not exhibit any undue customer concentration.

Evonik estimates that it holds market-leading positions (i.e. ranking 1st, 2nd or 3rd in the relevant markets) in approximately 80%of its products, including DL-methionine, super absorbents, silicas and polyamide 12. Performance Materials, which include C4 chainintermediates and acrylic mono- and polymers, entail some exposure to the commodity cycle.

3 23 June 2020 Evonik Industries AG: Update following change of outlook to negative

MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 3

FY 2019 Sales by Segment (Excluding Services)Exhibit 4

FY2019 Sales by Region

Specialty Additives28%

Nutrition & Care24%

Smart Materials27%

Performance Materials21%

Source: Company filings, Moody's Investors Service

Western Europe

42%

Eastern Europe

6%

North America22%

Central & South America

5%

Asia-Pacific North16%

Asia-Pacific South

6%

Other3%

Source: Company filings, Moody's Investors Service

Growth fundamentals, innovation, acquisition synergies and efficiency gains to boost future profitabilityIn May 2020 Evonik presented a new corporate strategy. As part of this a new divisional structure was presented with the focus on thethree divisions Specialty Additives, Nutrition & Care and Smart Materials that are primed for growth. The target is an above-averagevolume growth in these divisions in excess of 3% over the cycle. The company is evaluating all strategic options for its Baby Care businessunit, part of Performance Materials, after many years of optimisation, streamlining and self-help measures. We would not rule out adisposal of Baby Care, so that the company continues its focus on specialty chemicals.

Management aims to structurally lift the EBITDA margin into a corridor of between 18%-20%. Contributors to the margin expansionwill be (i) organic growth projects and a continued shift towards specialty chemicals, both contributing in excess of 100 bps; (ii)efficiency measures in administration and operations contributing around 50 bps; and (iii) innovative products with a contributionof around 50 bps. Management expects that the new reporting structure results in a leaner organisation, from which managementexpects annual cost savings of €25 million by the end of 2021. This would come on top of the SG&A savings programme, commencedin 2018, with a completion by the end of 2020 and a total savings target of €200 million, of which €120 million has already beenachieved. Evonik expects the APD, Huber and PeroxyChem acquisitions to generate a total of €100 million of recurring annual synergiesby 2020/21 against one-off integration costs of €120 million. The focus on Performance Materials will be on cost efficiency throughprocess innovation and optimisation, and cash generation.

Evonik is one of the few companies in the sector that has upheld a financial guidance for 2020. It is expecting company-adjustedEBITDA of between €1.7 billion and €2.1 billion, which compares to Moody's-adjusted EBITDA of €1.9 billion, including estimated SG&Asavings of around €80 million, synergies from past acquisitions of more than €80 million and incremental EBITDA of around $60million from the acquired PeroxyChem business.

4 23 June 2020 Evonik Industries AG: Update following change of outlook to negative

MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 5

2015 - 2019 Historical EBITDA and EBITDA margin by Segment

0%

5%

10%

15%

20%

25%

30%

35%

0

400

800

1,200

1,600

2,000

2,400

2,800

2015 2016 2017 2018 2019

€ m

illio

n

Specialty Additives Nutrition & Care Smart Materials Performance Materials

SA Margin (RHS) NC Margin (RHS) SM Margin (RHS) PM Margin (RHS)

Note: Excluding ServicesSource: Company filings, Moody's Investors Service

Past acquisitions resulted in leverage consistently above 3.0xThe acquisitions of APD, Huber and Dr. Straetmans were events that resulted in a re-leveraging of the group with debt/EBITDA consistentlyabove 3.0x since 2015 when it was 2.2x. APD closed in January 2017 with debt raised for the transaction already reflected in the 2016accounts. Although metrics improved following the disposal of the MMA business for the pre-tax disposal receipt of around €2.5 billionand the retirement of €500 million of debt in April 2020, the Moody's-adjusted gross leverage will reach 3.7x in 2020 according to ourestimates. This is well above our 2.5x expectations that we have set for the Baa1 rating. We view the €500 million bond issue as pre-funding of the €650 million bond due in March 2021.

Exhibit 6

2015 - 2020e Moody´s adjusted Free Cash Flow Development

-1,800

-1,400

-1,000

-600

-200

200

600

1,000

1,400

1,800

2,200

2015 2016 2017 2018 2019 2020e

€ m

illio

n

FFO WC Dividends Capex FCF

Source: Moody's Investors Service

The new guidance for capital spending is €850 million. The capex to sales ratio varies by division and ranges from 4% for SpecialtyAdditives, 5% for Nutrition & Care and 6% for Smart Materials, or around 6% for the group (including Performance Materials). Thedividend policy of a reliable and increasing dividend payout will be maintained. Effectively, Evonik has not increased its dividend per share(DPS) of 1.15 since 2015. The company plans to keep this level for the 2019 dividend, that in 2020 is paid on two days: as an advancedpayment of €0.57 DPS in June and the remaining €0.58 DPS in September.

ESG considerationsEvonik ranks 9th out 38 chemical companies in Europe, or 180 out of 4,842 in the universe, with regards to its overall ESG scoreaccording to Vigeo Eiris.

5 23 June 2020 Evonik Industries AG: Update following change of outlook to negative

MOODY'S INVESTORS SERVICE CORPORATES

Environmental considerationsEvonik is committed to the “Paris Agreement on Climate Change”. As part of this, it aims to reduced its absolute scope 1 and scope2 emissions until 2025 by 50% against a 2008 base. By 2019 it had achieved a reduction of 42%. In addition to this, by 2025 Evonikaims intends to reduce the scope 3 emissions related to raw material “backpack” by 15 % based on the reference year 2020. Internally,CO2 pricing is used in its investment decisions.

Social considerationsThe rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset pricedeclines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects ofthese developments are unprecedented. We regard the coronavirus outbreak as a social risk under our ESG framework, given thesubstantial implications for public health and safety.

The accident (actual in 2019: 1.18) and incident frequency rates (1.1) in 2019 were below or at their targets of 1.3 and 1.1 respectively.

The company also strives to further increase its gender and cultural diversity in the organisation.

Governance considerationsFinancial targets as part of the new strategy are an EBITDA margin between 18% and 20%, a cash conversion ratio in excess of 40%and a ROCE of 11%. Evonik also aims to grow its dividend reliably and sustainably and is committed to a solid investment grade rating.Further, Evonik targets more than €1.0 billion of sales contribution from innovation growth fields by 2025 from a base of around €300million in 2019 and with above-average margins. Evonik defines these growth fields as food ingredients, additive manufacturing, nutrition,cosmetics, membranes, healthcare.

Liquidity AnalysisThe liquidity profile of Evonik remains solid. At March-end 2020 Evonik reported cash and cash equivalents of nearly €1.0 billion andaround €1.0 billion of short-term marketable securities. Evonik has access to a €1.75 billion revolving credit facility due June 2024, that iscurrently undrawn and does not contain any financial covenants or MAC clause. Free cash flow generation will be constrained by lowerfunds from operations due to the coronavirus outbreak and dividend payments of around €536 million.

Evonik in May 2020 raised €500 million from a new 5-year bond whose proceeds are earmarked to repay the €650 million bond dueMarch 2021.

Rating Methodology and Scorecard Factors

The principal methodology used in rating Evonik is Moody's rating methodology for the Chemical Industry, which can be found at thewww.moodys.com website and was updated in March 2019.

The scorecard indicates a Baa2 for the last twelve months ending March 2020 and our forward-view over the next 12-18 months. Thisreflects leverage in the 3.2x-3.7x range, RCF/debt between 13%-15/5% and low asset return metrics. The negative outlook assigned tothe Baa1 rating reflects the weak positioning of the company in the rating category.

6 23 June 2020 Evonik Industries AG: Update following change of outlook to negative

MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 7

Scorecard and scorecard factors

Chemical Industry Scorecard [1][2]

Factor 1 : Scale (15%) Measure Score Measure Score

a) Revenue (USD Billion) $14.5 Baa $13.5 - $14 Baa

b) PP&E (net) (USD Billion) $8.0 Baa $7.5 - $8 Baa

Factor 2 : Business Profile (25%)

a) Business Profile A A A A

Factor 3 : Profitability (10%)

a) EBITDA Margin 16.4% Baa 15.5% - 17% Baa

b) ROA (Return on Average Assets) 5.4% B 4.5% - 5.5% B

Factor 4 : Leverage & Coverage (30%)

a) Debt / EBITDA 3.6x Ba 3.2x - 3.7x Ba

b) RCF / Debt 10.5% Ba 13% - 15.5% Ba

c) EBITDA / Interest Expense 12.3x Baa 11x - 14x Baa

Factor 5 : Financial Policy (20%)

a) Financial Policy Baa Baa Baa Baa

Rating:

a) Scorecard-Indicated Outcome Baa2 Baa2

b) Actual Rating Assigned Baa1

Current

LTM 3/31/2020

Moody's 12-18 Month Forward View

As of 6/10/2020 [3]

[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.[2] As of 12/31/2019[3] This represents Moody's forward view; not the view of the issuer; and unless noted in the text, does not incorporate significant acquisitions and divestitures.Source: Moody's Financial Metrics™

Appendix

Exhibit 8

Evonik Industries AG peer comparison

(in US millions)

FYE

Dec-18

FYE

Dec-19

LTM

Mar-20

FYE

Dec-18

FYE

Dec-19

LTM

Mar-20

FYE

Dec-18

FYE

Dec-19

LTM

Mar-20

FYE

Dec-18

FYE

Dec-19

LTM

Mar-20

Revenue $15,667 $14,675 $14,517 $10,411 $9,782 $9,569 $8,059 $7,615 $7,521 $12,113 $11,468 $11,276

EBITDA $2,504 $2,436 $2,388 $1,695 $1,595 $1,461 $1,143 $1,136 $1,103 $2,207 $2,362 $2,317

Total Debt $7,981 $8,356 $8,530 $3,688 $4,228 $4,298 $4,098 $4,006 $5,009 $8,905 $7,986 $7,145

Cash & Cash Equiv. $1,139 $2,658 $2,227 $1,647 $1,579 $1,708 $1,531 $1,208 $2,314 $1,339 $957 $1,024

EBITDA Margin 16.0% 16.6% 16.4% 16.3% 16.3% 15.3% 14.2% 14.9% 14.7% 18.2% 20.6% 20.5%

ROA - EBIT / Avg. Assets 5.7% 5.7% 5.4% 9.4% 8.0% 6.5% 5.5% 6.3% 5.7% 4.1% 5.0% 4.9%

EBITDA / Int. Exp. 9.3x 12.1x 12.3x 14.6x 16.6x 16.1x 8.5x 10.4x 10.0x 6.5x 8.6x 8.6x

Debt / EBITDA 3.3x 3.4x 3.6x 2.2x 2.6x 3.0x 3.7x 3.5x 4.6x 4.2x 3.4x 3.1x

RCF / Debt 20.2% 11.4% 10.5% 30.2% 26.2% 22.7% 21.1% 17.9% 14.0% 18.5% 22.7% 18.1%

Baa1 Negative Baa1 Stable Baa2 Stable Baa2 Negative

Evonik Industries AG Arkema Lanxess AG Solvay SA

Note: All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.Source: Moody's Financial Metrics™

Exhibit 9

Evonik Industries AG historical Moody's adjusted debt breakdown

(in EUR Millions)FYE

Dec-15

FYE

Dec-16

FYE

Dec-17

FYE

Dec-18

FYE

Dec-19

LTM Ending

Mar-20

As Reported Debt 1,706 3,735 4,144 4,020 4,586 4,956

Pensions 3,221 3,733 2,800 2,693 3,158 3,158

Operating Leases 437 569 589 609 0 0

Hybrid Securities 0 0 -248 -248 -249 -249

Non-Standard Adjustments -107 -144 -13 -92 -51 -91

Moody's-Adjusted Debt 5,257 7,893 7,273 6,982 7,444 7,774

Source: Moody's Financial Metrics™

7 23 June 2020 Evonik Industries AG: Update following change of outlook to negative

MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 10

Evonik Industries AG historical Moody's adjusted EBITDA breakdown

(in EUR Millions)FYE

Dec-15

FYE

Dec-16

FYE

Dec-17

FYE

Dec-18

FYE

Dec-19

LTM Ending

Mar-20

As Reported EBITDA 2,388.0 2,068.0 2,151.0 1,935.0 2,151.0 2,101.0

Pensions 18.0 25.0 29.0 36.0 27.0 27.0

Operating Leases 99.0 131.0 142.0 139.0 0.0 0.0

Interest Expense – Discounting -23.0 -33.0 -22.0 -17.0 -34.0 -34.0

Unusual -144.0 90.0 1.0 37.0 37.0 75.0

Non-Standard Adjustments 15.0 39.0 -10.0 -10.0 -5.0 -20.0

Moody's-Adjusted EBITDA 2,353.0 2,320.0 2,291.0 2,120.0 2,176.0 2,149.0

Source: Moody's Financial Metrics™

Exhibit 11

Evonik Industries AG - Summary Financials

EUR million 2015 2016 2017 2018 2019

INCOME STATEMENT

Revenues 13,507 12,732 14,383 13,267 13,108

EBITDA 2,353 2,320 2,291 2,120 2,176

EBIT 1,571 1,502 1,339 1,171 1,229

BALANCE SHEET

Cash & Cash Equivalents 2,630 4,634 1,013 996 2,368

Total Debt 5,291 7,916 7,273 6,982 7,444

Net Debt 2,661 3,282 6,260 5,986 5,076

CASH FLOW

Funds from Operations 1,734 1,535 1,617 1,968 1,402

Change in Working Capital items 273 323 107 (114) 168

Cash Flow from Operations (CFO) 2,007 1,858 1,724 1,854 1,570

Capital Expenditures (CAPEX) (998) (1,059) (1,163) (1,060) (1,006)

Dividends (477) (545) (553) (557) (553)

Free Cash Flow (FCF) 532 254 9 237 11

Retained Cash Flow (RCF) 1,257 990 1,065 1,411 849

RCF / Total Debt 24% 13% 15% 20% 11%

RCF / Net Debt 47% 30% 17.0% 23.6% 16.7%

FCF / Total Debt 10% 3% 0% 3% 0%

PROFITABILITY

EBIT Margin % 11.6% 11.8% 9.3% 8.8% 9.4%

EBITDA Margin % 17.4% 18.2% 15.9% 16.0% 16.6%

LEVERAGE

Total Debt / EBITDA 2.2x 3.4x 3.2x 3.3x 3.4x

Net Debt / EBITDA 1.1x 1.4x 2.7x 2.8x 2.3x

All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.Source: Moody's Financial Metrics™

8 23 June 2020 Evonik Industries AG: Update following change of outlook to negative

MOODY'S INVESTORS SERVICE CORPORATES

Ratings

Exhibit 12

Category Moody's RatingEVONIK INDUSTRIES AG

Outlook NegativeIssuer Rating -Dom Curr Baa1Senior Unsecured -Dom Curr Baa1Jr Subordinate -Dom Curr Baa3

EVONIK FINANCE B.V.

Outlook NegativeBkd Senior Unsecured -Dom Curr Baa1

Source: Moody's Investors Service

9 23 June 2020 Evonik Industries AG: Update following change of outlook to negative

MOODY'S INVESTORS SERVICE CORPORATES

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To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatorylosses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for theavoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents,representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDITRATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (includingcorporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating,agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody’sinvestors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regardingcertain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publiclyreported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance —Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s InvestorsService Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intendedto be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, yourepresent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly orindirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as tothe creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’sOverseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a NationallyRecognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by anentity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registeredwith the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferredstock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and servicesrendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

REPORT NUMBER 1224423

10 23 June 2020 Evonik Industries AG: Update following change of outlook to negative

MOODY'S INVESTORS SERVICE CORPORATES

CLIENT SERVICES

Americas 1-212-553-1653

Asia Pacific 852-3551-3077

Japan 81-3-5408-4100

EMEA 44-20-7772-5454

11 23 June 2020 Evonik Industries AG: Update following change of outlook to negative