LANXESS – Energizing Chemistry

A short introduction

Date of speech
Name of speaker

LANXESS – a globally operating specialty chemicals company

Background
Spin-off from Bayer in 2004
Specialty chemicals portfolio: plastics, synthetic rubber, intermediates
and specialty chemicals
Name: combination of "lancer" (French: “to set in motion”) and
"success”
Global success story
52 sites worldwide
Approximately 16,300 employees in 29 countries
Global sales of € 8.0 billion in 2014
Strategy of efficiency and excellence
Focus on market leadership for technology, products and processes

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Global presence

**

Asia/Pacific Germany
Sales per region 25.9
18
Germany
Employees per region Asia/Pacific 16.5 46.7

(2014, in %) Latin America 10.7

28.7
(2014, in %) Latin America 8.8
8.3
16.7 EMEA 19.7
(without Germany)
EMEA
North America (without Germany)
North America

* Intend to stop production of EPDM rubber in Marl by the end of 2015

The LANXESS Portfolio is based on three strong segments

LANXESS – Energizing Chemistry

Performance Polymers Advanced Intermediates Performance Chemicals

Globally No. 1-3 Europe No. 1-2 No. 1-4 in niches

A global technology leader in synthetic A leading supplier of custom synthesis Application-oriented specialties
rubber and polyamide and basic chemicals (agrochem-related) Strong brands and a technology leader
Supporting trends: Supporting trends: Supporting trends:
− Mobility, growing population in Asia − Increasing crop demand based on − Urbanization
− High performance tires growing world population − Rising middle class in APAC
− Vehicle weight reduction − Need of farmers to raise yields − Scarcity of purified water
− Tire labeling, replacement potential − Industry consolidation − Ongoing market consolidation
Increasing competitiveness across the portfolio

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Business structure competitiveness: new business set-up
creates more efficient and effective market approach
Performance Polymers Advanced Intermediates Performance Chemicals

Tire & Specialty Rubbers Advanced Industrial Intermediates Material Protection Products

High Performance Elastomers Saltigo Inorganic Pigments

High Performance Materials Rhein Chemie Additives

Leather

Liquid Purification Technologies

Sales: > €500 m Sales: €200 m – 500 m Sales: < €200 m

Organisation with global

LANXESS Board responsibility
of Management: –
Directly connected to all
The LANXESS board
Group Functions and Business Units
Matthias Zachert Hubert Fink Michael Pontzen Rainier van Roessel
Chairman of the Board Board of Management Chief Financial Officer Labor Relations Director

Corporate Communications Global Procurement & Accounting Human Resources

Corporate Development
Executive Human
Resources
Legal & Compliance
Business Units*:
TSR, HPE
Logistics Corporate Controlling Business Units:
Production, Technology, Information Technology MPP, IPG, ADD, LEA, LPT
Safety & Environment Mergers & Acquisitions
Business Units: Tax & Trade Compliance
AII, SGO, HPM Treasury & Investor
Relations

* Interim

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Serving a broad customer range

Sales distribution by industry (2014)

Others

Tires

Agro

Construction

Automotive

Consumer Goods
Chemicals

Offering solutions for global megatrend challenges

Mobility Urbanization

Agriculture Water

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A clear priority to improve efficiency and processes before
transitioning to growth

2014 - A year of realignment Realignment of LANXESS

Higher earnings than in previous year Matthias Zachert takes over as new CEO on 2014-04-01
Must continue to adapt to become more competitive and Three-phase program “Let’s LANXESS again” initiated
profitable Immediate actions taken: Number of business units reduced
Value generation in focus again from 14 to 10, administrative functions consolidated

2014 – 2016
Targeted expansion Phase 1: Business & administration structure
Expands new plant for inorganic pigments in Ningbo, China competitiveness; restructuring to regain cost
Investment in high-tech plastics production in Gastonia, USA competitiveness
Commissioned new plant for polyamide plastics in Antwerp,Belgium Phase 2: (details 2015) Operations competitiveness;
New rubber production line opens in Dormagen, Germany addressing capacity challenges
Opening of high-tech plastics plant in Porto Feliz, Brazil Phase 3: (details 2015) Portfolio competitiveness and
evaluation of alliances

Clear commitment to corporate responsibility

for sustainable growth
Integration of Corporate Responsibility in LANXESS’ overall business approach
Integration in internal activities
e.g. strong focus on safety (global Xact programme)

Integration along the whole value chain

Production
Raw Sustainable Transpor- Product Product
Resources and efficient Disposal
materials processes products tation applications stewardship

Renewable raw Conservation of Environmentally Recycling and Environmentally Environmentally Sustainable Responsibility for
materials natural resources friendly reuse of friendly friendly logistics solutions for products through
production resources products global entire lifecycle
processes megatrends

Integration to external activities

e.g. LANXESS education initiative or cultural involvement

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LANXESS is founding member of the
“Together for Sustainability” initiative (TfS)
Basic idea: “An audit for one is an audit for all” More sustainability…

LANXESS is founding member since 2011

LANXESS is a partner for its suppliers and supports them in
improving their sustainability practices to meet the high standards
defined in our Supplier Code of Conduct
The goal of the TfS initiative is to develop and implement a global
audit program to assess and improve sustainability practices in the
supply chain of the chemical industry
By sharing supplier sustainability assessments and audit data within
the initiative, LANXESS uses resources more efficiently and reduces
the administrative workload for suppliers

…in the chemical supply chain

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