evonik industries ag vp-sr credit officer

CORPORATES

CREDIT OPINION29 April 2021

Update

RATINGS

Evonik Industries AGDomicile Essen, Germany

Long Term Rating Baa2

Type LT Issuer Rating - DomCurr

Outlook Stable

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]

Carsten Johann +49.69.70730.966Associate [email protected]

Matthias Hellstern +49.69.70730.745MD-Corporate [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 downgrade to Baa2

SummaryThe Baa2 rating of Evonik Industries AG reflects the continued transformation of divestingnon-core activities and the use of proceeds to further build its specialty chemicals portfoliothrough capital investments and bolt-on and mid-sized acquisitions that will further enhancethe stability of its operating performance. Liquidity remains solid supported by high cashbalances and liquid assets of around €1.0 billion at FYE20 and a €1.75 billion revolving creditfacility due June 2024.

The Baa2 rating also takes into account Moody's-adjusted gross financial leverage with debt/EBITDA that has been above 3.0x since 2016 and low, but improving Moody's-adjusted freecash flow (FCF) generation - averaging around €109 million in the 2016-2020 period - thatlimits the ability to deleverage. Looking ahead, we do not expect that EBITDA improvementsand an assumed repayment of Evonik's €750 million bond due 2023 would sufficientlyimprove financial metrics. We estimate EBITDA to recover to pre-covid levels in 2021 (€2.1billion) and to improve to above €2.2 billion beyond 2022 resulting in Moody's-adjusteddebt/EBITDA of 3.4x in 2021 and 3.0x in 2022.

Exhibit 1

Leverage and Coverage Metrics

3.2x 3.3x 3.4x

4.0x

2.7x 2.8x

2.3x

3.4x

0%

10%

20%

30%

40%

50%

60%

2017 2018 2019 2020 2021e

2.2x

3.4x3.2x

3.3x3.4x

4.0x

1.1x

1.4x

2.7x 2.8x

2.3x

3.4x

0%

10%

20%

30%

40%

50%

60%

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

2015 2016 2017 2018 2019 2020 2021e

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

Source: Moody's Financial Metrics™

http://www.surveygizmo.com/s3/1133212/Rate-this-research?pubid=PBC_1273335

https://www.moodys.com/credit-ratings/Evonik-Industries-AG-credit-rating-806874075

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 projects,continuous focus on operating and capital efficiency and lower structural capital expenditures

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

Credit Challenges

» Delivery of cost savings from ongoing efficiency initiatives

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

» Relative high dividend payout of around €536 million that constrains FCF generation

Rating OutlookThe outlook is stable. It reflects Moody's expectation that Evonik continues its evolution of increasing the share of specialty chemicalsby divesting non-specialty chemicals activities, reinvesting into specialty chemicals investments and acquisitions in order to improve itsbusiness risk profile. The stable outlook also factors in a financial profile with Moody's-adjusted debt to EBITDA in the 2.5x-3.0x range.

Factors that Could Lead to an Upgrade

» RCF to net debt above mid 20s (%)

» Debt to EBITDA below 2.5x

Factors that Could Lead to a Downgrade

» Debt/EBITDA sustainably above 3.0x

» RCF/net debt approaching 15%

Key Indicators

12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020

Revenue (USD billion) $14.1 $16.3 $15.7 $14.7 $13.9

PP&E (net) (USD billion) $7.0 $8.5 $8.5 $7.9 $8.9

EBITDA Margin % 18.2% 15.9% 16.0% 16.6% 15.1%

Return on Average Assets 8.0% 6.6% 5.7% 5.7% 3.8%

Debt / EBITDA 3.4x 3.2x 3.3x 3.4x 4.0x

RCF / Debt 12.5% 14.6% 20.2% 10.7% 11.8%

EBITDA / Interest Expense 11.4x 9.6x 9.3x 12.1x 12.6x

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™

ProfileEvonik Industries AG, headquartered in Essen, Germany, is the holding company of the Evonik group, one of the leading European specialtychemicals producers. In 2020, Evonik reported revenue of around €12.2 billion and EBITDA of around €1.9 billion, equivalent to a marginof 15.6%.

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 29 April 2021 Evonik Industries AG: Update following downgrade to Baa2


Evonik has production facilities in 27 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 are organised around four divisions since 1 July 2020:

» Specialty Additives. €3.2 billion of sales and an adjusted EBITDA of €857 million in 2020. Products include coating, polyurethaneand lubricant additives.

» Nutrition & Care. €3.0 billion of sales and an adjusted EBITDA of 560 million in 2020. Key products are amino acids, drug deliverysystems, cosmetic ingredients.

» Smart Materials. €3.2 billion of sales and an adjusted EBITDA of €529 million in 2020 Among products are silica, hydrogen peroxide,catalysts and polyamide (PA12).

» Performance Materials. €2.0 billion of sales and an adjusted EBITDA of €88 million in 2020. Products include C4 derivatives andsuperabsorbers.

On 22 April 2021 Evonik had a market capitalisation of around €14.0 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 €315 million it received from Evonik in 2020.

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’ PerformanceMaterials Division (APD) for €3.5 billion in the field of specialty and coatings additives; Dr. Straetmans for €100 million, a producer ofalternative preservatives for the cosmetics industry; Huber Silica’s portfolio for around €600 million, focusing on dental and life sciencespecialties - and the acquisition of PeroxyChem, a producer of hydrogen peroxide, persulfates, peracetic acid, for an enterprise value of$640 million, that closed in 2020. Evonik also closed in November 2020 the €210 million acquisition of Porocel, a catalyst producer.In total, the portfolio realignment resulted in less cyclicality and less asset- and capex-intensity. The EBITDA margin contribution ofacquired businesses averaged 22%. We expect Evonik to take advantage of M&A opportunities to further grow and complement itsexisting business, in particular in Specialty Additives, Animal Nutrition and Smart Materials. Management is in the process of carving outits Baby Care (superabsorbers) business into a separate legal entity whilst exploring strategic options for the business. We believe thata divestment is amongst the most likely outcomes.

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 (typically 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.



Exhibit 3

FY 2020 Sales by Segment (Excluding Services)Exhibit 4

FY 2020 Sales by Region

Smart Materials28%

Speciality Additives28%

Nutrition & Care26%

Performance Materials18%

Source: Company filings, Moody's Investors Service

Europe, Middle East & Africa48%

North America24%

Central & South America5%

Asia-Pacific23%

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 the threedivisions Specialty Additives, Nutrition & Care and Smart Materials that are primed for growth. The target is an above-average volumegrowth in these divisions in excess of 3% over the cycle. Evonik considers innovation and sustainability as key growth drivers. Evonik targetsmore than €1.0 billion of sales contribution from innovation growth fields by 2025 from a base of around €350 million in 2020 and withabove-average margins. Evonik defines these growth fields as advanced food ingredients, additive manufacturing, sustainable nutrition,cosmetic solutions, membranes, and healthcare solutions. Currently, around 35% of sales are generated with products providing Evonikcustomers with sustainability benefits (so called Next Generation Solutions). Evonik targets to further grow this share over time. Thecompany is evaluating all strategic options for its Baby Care business unit, part of Performance Materials, after many years of optimisation,streamlining and self-help measures.

Specialty Additives and Smart Materials, accounting for about 56% of group revenues, in particular have proven to be strong from anEBITDA margin perspective but also from the low margin volatility over time. Over the period 2015-2020 Specialty Additives have hadan adjusted EBITDA margin of 27% and Smart Materials of 18%. The performance of Nutrition & Care was more volatile because of theexposure to Animal Health (methionine), but we expect the wide price fluctuations in the 2015-2017 time frame to abate and normalise.The average margin level of Performance Materials of 8.2% is a drag to the overall group's target. Management aims to structurallylift the EBITDA margin into a corridor of between 18%-20%. Contributors to the margin expansion will be (i) organic growth projectsand a continued shift towards specialty chemicals, both contributing in excess of 100 bps; (ii) efficiency measures in administration andoperations contributing around 50 bps; and (iii) innovative products with a contribution of around 50 bps.

Management expects that the new reporting structure results in a leaner organisation, from which management expects annual costsavings of €25 million by the end of 2021. This would come on top of the SG&A savings programme, commenced in 2018 and completed atthe end of 2020, which overachieved its total savings target of €200 million. Evonik expects the APD, Huber and PeroxyChem acquisitionsto generate a total of €100 million of recurring annual synergies by 2020/21 against one-off integration costs of €120 million. The focuson Performance Materials will be on cost efficiency through process innovation and optimisation, and cash generation.

Evonik is guiding towards 2021 EBITDA of between €2.0 billion and €2.3 billion. We expect the company to reach pre-covid levels in2021 of around €2.1 billion and further growing to €2.2 billion in 2022. The Q1 2021 management indication of at least €550 millionEBITDA could support meeting the upper end of the guidance boundary if the recovery is further sustained.



2015 - 2020 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 2020

€ 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 billion andthe retirement of €500 million of debt in April 2020, 2020 ended with Moody's adjusted gross leverage at 4.0x owing to the coronaviruspandemic induced EBITDA decline. We expect gross leverage to improve to 3.0x in 2022 pro forma the repayment of the €750m bonddue 2023.

Exhibit 6

2015 - 2021e 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 2020 2021e

€ 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 sustainably growing dividend will be maintained. Effectively, Evonik has not increased its dividend pershare (DPS) of €1.15, or around €536 million, since 2015.

ESG considerationsEvonik ranks 9th out 41 chemical companies in Europe, or 199 out of 4,893 in the universe, with regards to its overall ESG scoreaccording to Vigeo Eiris.


https://www.moodys.com/affiliate-content/VE/Equity/XS0456708212.PDF


Environmental considerationsEvonik is committed to the “Paris Agreement on Climate Change”. As part of this, it aims to reduce its absolute scope 1 and scope 2emissions until 2025 by 50% against a 2008 base. By 2020 it had achieved a reduction of 44%. In addition to this, by 2025 Evonikaims 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. Further, Evonik intends to reduce both its absolute and specific energy consumption by 5%against the 2020 base by 2025.

Social considerationsIn 2020, the accident frequency was 0.8, significantly below Evonik's target of 1.3. This was mainly due to the increased number ofemployees working from home as a result of the coronavirus pandemic. The incident frequency rose to 1.45 (target 1.0), because ofmeasures to raise awareness among the company's employees as well as the inclusion of newly acquired sites in its reporting system.The company also strives to further increase its gender and cultural diversity in the organisation and has set itself targets for thispurpose.

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% anda ROCE of 11%. Evonik also aims to grow its dividend reliably and sustainably and is committed to a solid investment grade rating.

Liquidity AnalysisThe liquidity profile of Evonik remains solid. At year-end 2020 Evonik reported cash and cash equivalents of around €1.0 billion. Evonikhas access to a €1.75 billion revolving credit facility due June 2024, that is currently undrawn and does not contain any financial covenantsor MAC clause. More meaningful free cash flow generation remains constrained by dividend payments of around €536 million.

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 December 2020 and our forward-view over the next 12-18 monthswhich is in line with the Baa2 rating of Evonik.



Exhibit 7

Scorecard and scorecard factors

Chemical Industry Scorecard [1][2]

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

a) Revenue (USD Billion) $13.9 Baa $15 - $16 A

b) PP&E (net) (USD Billion) $8.9 A $8.6 - $8.9 A

Factor 2 : Business Profile (25%)

a) Business Profile A A A A

Factor 3 : Profitability (10%)

a) EBITDA Margin 15.1% Baa 16.8% - 17.2% Baa

b) ROA (Return on Average Assets) 3.8% B 5% - 6% B

Factor 4 : Leverage & Coverage (30%)

a) Debt / EBITDA 4.0x Ba 3x - 3.4x Ba

b) RCF / Debt 11.8% Ba 16% - 18% Ba

c) EBITDA / Interest Expense 12.6x Baa 14x - 16x A

Factor 5 : Financial Policy (20%)

a) Financial Policy Baa Baa Baa Baa

Rating:

a) Scorecard-Indicated Outcome Baa2 Baa2

b) Actual Rating Assigned Baa2

Current

FY 12/31/2020

Moody's 12-18 Month Forward View

As of 3/30/2021 [3]

[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.[2] As of 12/31/2020[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

FYE

Dec-20

FYE

Dec-18

FYE

Dec-19

LTM

Sep-20

FYE

Dec-18

FYE

Dec-19

FYE

Dec-20

FYE

Dec-18

FYE

Dec-19

FYE

Dec-20

FYE

Dec-18

FYE

Dec-19

FYE

Dec-20

Revenue $15,667 $14,675 $13,923 $12,113 $11,468 $10,295 $8,059 $7,615 $6,967 $17,260 $13,895 $12,219 $10,411 $9,782 $8,998

EBITDA $2,504 $2,436 $2,106 $2,207 $2,362 $2,011 $1,143 $1,136 $1,106 $3,923 $1,789 $1,695 $1,695 $1,595 $1,263

Total Debt $7,981 $8,356 $8,966 $8,905 $7,986 $7,444 $4,098 $4,006 $4,461 $3,376 $3,996 $5,955 $3,688 $4,228 $4,325

Cash & Cash Equiv. $1,139 $2,658 $1,259 $1,339 $957 $1,346 $1,531 $1,208 $2,195 $989 $840 $3,096 $1,647 $1,579 $1,942

EBITDA Margin 16.0% 16.6% 15.1% 18.2% 20.6% 19.5% 14.2% 14.9% 15.9% 22.7% 12.9% 13.9% 16.3% 16.3% 14.0%

ROA - EBIT / Avg. Assets 5.7% 5.7% 3.8% 4.1% 5.0% 3.9% 5.5% 6.3% 5.7% 22.3% 7.6% 5.8% 9.4% 8.0% 4.5%

EBITDA / Int. Exp. 9.3x 12.1x 12.6x 6.5x 8.6x 7.7x 8.5x 10.4x 11.4x 21.8x 11.5x 11.2x 14.6x 16.6x 13.2x

Debt / EBITDA 3.3x 3.4x 4.0x 4.2x 3.4x 3.5x 3.7x 3.5x 3.8x 0.9x 2.2x 3.3x 2.2x 2.6x 3.2x

RCF / Debt 20.2% 10.7% 11.8% 18.5% 22.7% 11.7% 21.1% 17.9% 15.0% 71.6% 27.6% 21.2% 30.2% 26.2% 20.3%

Baa2 Stable Baa2 Stable Baa2 Stable Baa2 Stable Baa1 Stable

Evonik Industries AG Solvay SA Lanxess AG Covestro AG Arkema

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 breakdownFYE FYE FYE FYE FYE FYE

(in EUR million) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20

As Reported Total Debt 1,706.0 3,735.0 4,144.0 4,020.0 4,586.0 3,951.0

Pensions 3,221.0 3,733.0 2,800.3 2,693.2 3,157.8 3,625.4

Operating leases 437.1 569.2 589.1 608.6 0.0 0.0

Hybrid Securities 0.0 0.0 (247.5) (248.0) (248.5) (249.0)

Non-Standard Public Adjustments (107.0) (144.0) (13.0) (92.0) (51.0) 0.0

Moody's Adjusted Total Debt 5,257.1 7,893.2 7,272.9 6,981.8 7,444.3 7,327.4




Exhibit 10

Evonik Industries AG historical Moody's adjusted EBITDA breakdownFYE FYE FYE FYE FYE FYE

(in EUR million) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20

As Reported EBITDA 2,388.0 2,068.0 2,151.0 1,935.0 2,151.0 1,845.0

Pensions 18.0 25.0 29.0 36.0 27.0 23.0

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) (23.0)

Unusual (144.0) 90.0 1.0 37.0 37.0 0.0

Non-Standard Public Adjustments 15.0 39.0 (10.0) (10.0) (5.0) 0.0

Moody's Adjusted EBITDA 2,353.0 2,320.0 2,291.0 2,120.0 2,176.0 1,845.0


Exhibit 11

Evonik Industries AG - Summary Financials and ProjectionsFYE FYE FYE FYE FYE FYE FYE FYE

(in EUR million) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 2021e 2022e

INCOME STATEMENT

Revenue 13,507 12,732 14,383 13,267 13,108 12,199 12,661 13,001

EBITDA 2,353 2,320 2,291 2,120 2,176 1,845 2,131 2,220

BALANCE SHEET

Cash & Cash Equivalents 2,630 4,634 1,013 996 2,368 1,029 1,493 914

Total Debt 5,257 7,893 7,273 6,982 7,444 7,327 7,327 6,579

Net Debt 2,627 3,259 6,260 5,986 5,076 6,298 5,834 5,666

CASH FLOW

Funds from Operations (FFO) 1,734 1,535 1,617 1,968 1,347 1,420 1,732 1,771

Change in Working Capital items 273 323 107 (114) 223 265 (101) (56)

Cash Flow From Operations (CFO) 2,007 1,858 1,724 1,854 1,570 1,685 1,631 1,715

Capital Expenditures (998) (1,059) (1,163) (1,060) (1,006) (1,095) (1,039) (989)

Dividends 477 545 553 557 553 557 557 557

Free Cash Flow (FCF) 532 254 9 237 11 33 35 169

Retained Cash Flow (RCF) 1,257 990 1,065 1,411 794 863 1,175 1,214

RCF / Debt 23.9% 12.5% 14.6% 20.2% 10.7% 11.8% 16.0% 18.5%

RCF / Net Debt 47.8% 30.4% 17.0% 23.6% 15.6% 13.7% 20.1% 21.4%

FCF / Debt 10.1% 3.2% 0.1% 3.4% 0.1% 0.5% 0.5% 2.6%

PROFITABILITY

EBIT margin % 11.6% 11.8% 9.3% 8.8% 9.4% 6.7% 8.8% 9.2%

EBITDA margin % 17.4% 18.2% 15.9% 16.0% 16.6% 15.1% 16.8% 17.1%

LEVERAGE

Debt / EBITDA 2.2x 3.4x 3.2x 3.3x 3.4x 4.0x 3.4x 3.0x

Net Debt / EBITDA 1.1x 1.4x 2.7x 2.8x 2.3x 3.4x 2.7x 2.6x

Note: All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.The adjusted gross debt figures in 2021 and 2022 include the same amount of pension debt as in fiscal year 2020. Changes in the pension plans discount rate impact Evonik´s adjusteddebt. According to the annual report 2020, a 1% increase in the group wide discount rates decrease the defined benefit obligation by around €2 billion. Also, we modeled potential disposalproceeds for baby care in 2021 and we assumed the early repayment of the €750 million bonds in 2022. Total debt excludes any potential increase in debt due to potential refinancingtransactions.Source: Moody's Financial Metrics™



Ratings

Exhibit 12

Category Moody's RatingEVONIK INDUSTRIES AG

Outlook StableIssuer Rating -Dom Curr Baa2Senior Unsecured -Dom Curr Baa2Jr Subordinate -Dom Curr Ba1

EVONIK FINANCE B.V.

Outlook StableBkd Senior Unsecured -Dom Curr Baa2

Source: Moody's Investors Service



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Because of the possibility of human or mechanical error as wellas other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information ituses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However,MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for anyindirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use anysuch information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses ordamages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of aparticular credit rating assigned by MOODY’S.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 $5,000,000. 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 JPY550,000,000.MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

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