In time for the Capital Markets Day, Evonik's two new Executive Board members, Lauren Kjeldsen (51) and Claudine Mollenkopf (58), were ready to answer questions from their various stakeholders. The two chemical engineers were not nervous – and if they were are they knew how to conceal it. The two women have been on Evonik's Executive Board for two months. The new medium-term financial targets therefore also bear their signature. And more importantly, they both share an absolute determination to succeed.

The programme kicked off last week with the management conference, followed by a press conference, and an analysts and investors call. This week the two „newcomers“ will answer questions at the Annual Shareholders' Meeting. A tight programme, but it was important to Mollenkopf that the managers were informed before the Capital Markets Day. After all, they are in the same boat – the goals can only be achieved together.

Starting from the crisis year of 2023, Evonik aims to increase its operating result by 1 billion euros by 2027, which corresponds to a target value of 2.7 billion euros. Half of the increase in earnings is to come from cost reductions and half from growth. As Evonik is forecasting an adjusted operating profit of between 2 and 2.3 billion euros for the current financial year, the targets do not appear overly ambitious at first glance. However, Kjeldsen and Mollenkopf refute this impression. Growth does not fall into the laps of companies these days, especially not chemical companies with large plant parks in Europe.

„We want to use the market weakness to get the company to where it should have been a long time ago,“ says Mollenkopf. The fact that she and Kjeldsen are now two managers on the Management Board who come directly from the operational business, and have the necessary instinct for what is feasible and what is not, helps. The heads of the business units now report directly to the Executive Board. „We know what we are talking about and don't want to hear any nonsense,‘ says Mollenkopf and Kjeldsen adds: ’We are KPI-driven“.

The savings of 500 million euros seem easier to achieve than the required growth, especially since this includes the savings of 400 million euros by 2026 associated with the „Evonik Tailor Made“ efficiency programme. The remaining 100 million euros are to come from various initiatives in individual business units, the Business Lines. Until 2027, Evonik is clearly focussing on strengthening the balance sheet. Return on capital employed (ROCE) will be the measure of all things in future. The return on capital employed is to be increased to 11% by 2027. In 2024 it was 7.1%. The logical consequence: no more acquisitions are on the agenda until 2027. Instead, Evonik is now also considering share buybacks.

Kjeldsen and Mollenkopf were appointed to the Executive Board to bring more operational expertise back into the management body following the departure of Harald Schwager. The two female members of the Executive Board were previously part of the extended Executive Board. This management level was eliminated with the restructuring of the Executive Board and the new organisational structure. Since then, there have only been two segments, Custom Solutions (where Kjeldsen is Chief Operating Officer) and Advanced Technologies (with Mollenkof as Chief Operating Officer), to which the 14 business lines are divided. There are undoubtedly overlaps that require the two segment heads to work closely together.

It is therefore probably more than a coincidence that the two managers, who have known each other for many years and obviously get on well, were chosen. They describe themselves as analytical and goal-orientated. But despite all their objectivity, they have not forgotten how to laugh.

„We are here because we have performed. We expect the same from our people,“ says US-born Kjeldsen. She has been working in Germany since 2015, and is currently applying for naturalisation for her family of four. Mollenkopf, who was born in Alsace and is the mother of adult triplets, has held a German passport for some time. Both grew up working for Degussa. Mollenkopf, who has a doctorate in chemistry, began her career in 1996 in Degussa's catalyst business in Frankfurt, while Kjeldsen also joined Degussa's catalyst business in 2002, albeit in Parsippany (USA).