Company Presentation
June
2015
covestro.com
Disclaimer
This document and the presentation to which it relates contains information relating to Bayer MaterialScience AG, to be renamed Covestro with effect from September 1, 2015 (“Covestro” or the
“Company”) that is in summary draft form for discussion purposes only and must not be relied upon for any purpose and may not be redistributed, reproduced, published, or passed on to any other
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This document is being presented solely for informational purposes and should not be treated as giving investment advice. It is not, and is not intended to be, a prospectus, is not, and should not be
construed as, an offer to sell or the solicitation of an offer to buy any securities, and should not be used as the sole basis of any analysis or other evaluation and investors should not subscribe for or
purchase any shares in the Company on the basis of or in reliance on the information in this document. The Company has not decided finally whether to proceed with any transaction.
We advise you that the financial information presented herein and referred to as “Covestro segment financials” has been derived from the consolidated financial statements of Bayer AG and relates
to its MaterialScience segment. The Company, currently a wholly owned subsidiary of Bayer AG, is preparing combined financial statements. The preparation of combined financial statements for the
Covestro group on a standalone basis will require that certain changes be made to the financial information presented herein. Accordingly, the information presented herein should be treated as
merely indicative of the performance of the Covestro group as a standalone business and shall be superseded in its entirety by the combined financial statements for the Covestro group.
Certain information in this presentation is based on management estimates. Such estimates have been made in good faith and represent the current beliefs of applicable members of management.
Those management members believe that such estimates are founded on reasonable grounds. However, by their nature, estimates may not be correct or complete. Accordingly, no representation or
warranty (express or implied) is given that such estimates are correct or complete.
We advise you that some of the information presented herein is based on statements by third parties, and that no representation or warranty, express or implied, is made as to, and no reliance
should be placed on, the fairness, accuracy, completeness or correctness of this information or any other information or opinions contained herein, for any purpose whatsoever. Certain statements
contained herein may be statements of future expectations and other forward-looking statements that are based on the Company’s current views and assumptions and involve known and unknown
risks and uncertainties that may cause actual results, performance or events to differ materially from those expressed or implied in such statements. No one undertakes to publicly update or revise
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herein.
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Today’s presentation team
Patrick Thomas
CEO
• CEO of Bayer MaterialScience
since 2007
• Professional experience:
• President of Huntsman
Polyurethane, Performance and
Advanced Materials divisions
• CEO of ICI Polyurethanes
• > 37 years of industry experience
covestro.com
Frank H. Lutz
CFO
• Joined as CFO in October 2014
•
•
•
•
Professional experience:
CFO of Aldi Süd
CFO of MAN
Started his career at Goldman
Sachs and held positions in
Frankfurt, London and New York
• > 20 years of finance experience
Ronald Köhler
Head of Investor Relations
• Joined as Head of Investor
Relations in June 2015
• Professional experience:
• Partner and Head of Chemicals
at MainFirst
• Head of European Chemicals
Research at Commerzbank
• > 20 years of experience in
finance
3
Section 1
Covestro Company Overview
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4
Inventor and leader in high-tech material solutions
Covestro at a glance
Sales split by geography
2014A
Sales split by end-market
2014A
Latin America,
Africa, Middle East
12%
Sports / Leisure,
Cosmetics, Health, Other
19%
Automotive /
Transport
22%
Europe
38%
Chemicals
9%
North
America
22%
Construction
19%
Electrical /
Electronics
13%
Asia Pacific
28%
Key
Financials(a):
covestro.com
€11.7bn
sales 2014A
Notes: (a) Based on Covestro segment financials as published by Bayer AG
(b) Before special items
Source: Company information
Wood / Furniture
18%
€1.2bn(b)
EBITDA 2014A
10.2%(b) EBITDA
Margin 2014A and
14.1%(b) in Q1’15A
5
Inventor and leader in high-tech material solutions
Covestro at a glance
• Leading global polymer producer in polyurethanes and its derivatives as
well as polycarbonates
• Proven track record of process and product innovation, customer proximity
as well as market-driven solutions
• State-of-the-art asset base with leading process technology and total
production capacity of 4.7m(a) mt distributed across 8 world-scale
production facilities in three main regions
• Back-integration into chlorine, propylene oxide and other feedstock, aimed
at sourcing critical raw materials internally with no/limited merchant market
sales
• Headquartered in Leverkusen, Germany, with over 16,000 employees
globally
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Notes: (a) Includes total capacity for PUR and PCS in 2014
6
Market-leading, structurally attractive
business units
Covestro business units
Polyurethanes
(PUR)
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Polycarbonates
(PCS)
Coatings, Adhesives,
Specialties (CAS)
7
Market-leading, structurally attractive
business units
Covestro business units
Business
Units
Covestro
Global
Position(a) /
Capacity
Sales
2014A(b)
Polyurethanes
(PUR)
● Global #1:
 MDI 1,475kt
 TDI 660kt
 Polyether polyols 1,280kt
 EMEA 540kt
 NAFTA 230kt
 APAC 510kt
● Global #1:
 Aliphatic isocyanate
derivatives
● €2.8bn or 24% of
Covestro
● €1.9bn or 16% of
Covestro
● Rigid foam:
● Automotive parts
● Surface coatings
● IT and electrical
equipment, electronics
● Adhesives and sealants
● Construction (windows,
roof structure)
● Specialty films
● Cold chain
● Automotive parts
● Flexible foam:
● Furniture
● Bedding / mattresses
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● Joint Global #1:
Coatings, Adhesives,
Specialties (CAS)
● €6.3bn or 54% of
Covestro
● Building insulation
Key
Applications
Polycarbonates
(PCS)
● Elastomers
● Consumer products,
medical, and other
applications
Notes: (a) For PUR: Market position based on total nameplate capacity for MDI, TDI and Polyether polyols in 2014 (including 100% of JVs) relative to competitors as per Nexant industry analysis; Polyether
polyols capacity excluding 25kt capacity in Indonesia following site closure in 2014; for PCS: joint global leader (SABIC is the other #1) based on entire Polycarbonates nameplate capacity as per
Nexant industry analysis; for CAS: Based on total Aliphatic isocyanates volume in 2014 relative to competitors as per Orr & Boss analysis
(b) Based on Covestro segment financials as published by Bayer AG including Industrial Operations segment and Others
Source: Nexant, Orr & Boss
8
Building upon 80 years of innovation
and market leadership
Covestro history
1976-2014
CAGR
1998
First automotive
glazing
application
for the
Smart
rear
window
7%
2010
2015
Significant investments in expansion
of facilities at site in China
First bio-based
cross-linker (PDI)
Acquisition of TCG to
build position in
Thermoplastic
composites
1982
1995
Special grade of Makrolon®
used in optical storage media
First
Makrolon®
Introduction of
Makrolon® based
films for high
security
documents
automobile
headlamp
2011
Shanghai TDI plant
with new gas phase
phosgenation technology
1991
1959
Moltopren®
adopted by
fashion industry
1962
Polyurethane rigid foam
launched as insulation
for cooling devices
NASA memory foam
first released under the
"Tempur” brand,
establishing a major
customer for
Covestro’s Softcell
2012
2001
Introduction of
microcell technology,
with improved
insulation efficiency
2014
INSQIN® Waterborne
PU for synthetic leather
and other coated fabrics
Covestro integrated
site built in
Shanghai, China
1993
1985
1953
1937
Hermann Schnell
discovers
Polycarbonates
1967
Otto Bayer
discovers
Polyurethane
Bayer presents the
first car made almost
entirely from plastic
First Bayblend® flame
retardant grades for
business machines
2 component
waterborne PU for
parquet coating,
wood coating and
plastic coatings
2014
2013
Replacing epoxy
resin by PU resin
for wind blades
Construction of new
production line in
Dormagen to use CO2
as a new raw material
for foams
1954
Kuno Wagner
invents crosslinking agents
for lightfast Polyurethane
coatings
2015
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Source: Bayer
9
Focus on higher-value engineering
polymers and active specialties
Covestro in the polymer spectrum
● Active only in higher-value, smaller-volume engineering polymer markets
● Relatively consolidated markets with stable structures, largely unchanged over the last 5 years
● Product differentiation from close customer interaction and solution development
Plastics materials demand by resin types
2014
8,000
Average selling price (US$/t)(a)
5.000
Aliphatic
isocyanate
derivatives
(CAS)(b)
PBT
4.000
PMMA
Nylon 6
3.000
PC
TDI
PS
MDI
PE
EPS
2.000
PP
PET
1.000
0
10%
ABS
Polyether
Polyols
PVC
40%
70%
Top 5 producers’ share of total capacity
100%
Sales Value (US$bn)(c)
Covestro product (US$bn)(c)
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Notes: (a) Average selling price is based on 2014 published prices in Europe
(b) Proxy for CAS business unit; based on aliphatic isocyanate derivatives (derived from HDI, IPDI and H12MDI monomers)
(c) Sales value defined as: global demand (t) x average selling price (US$/t); bubble in the legend reflects c. US$2.0bn sales value
Source: Nexant
10
Independence unlocks further potential for
capital and cost efficiencies
Transitioning into a stand-alone company
Separation from Bayer…
Bayer
MaterialScience
28%
…gives Covestro greater flexibility
to independently pursue business goals
Strategic freedom to execute
asset optimization initiatives
Focus on achieving business
process and cost efficiencies
Bayer
HealthCare
49%
Strategic flexibility to develop
business portfolio
Ability to access capital markets
and optimize capital structure
Bayer
CropScience
23%
Bayer 2014A(a)
Sales €42.2bn
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From Life Sciences Group to pure-play Chemicals
Notes: (a) As per Bayer Annual Report 2014
11
Section 2
Covestro Key Investment Highlights
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Global leader in high-tech material solutions
Covestro Key Investment Highlights
1
Leading and defendable global market positions
based on focused portfolio
2
Favorable industry dynamics
with robust above GDP growth prospects in a diverse range of end-markets
3
Positioned to deliver volume growth
through well-invested, large-scale asset base with competitive cost position
4
Portfolio including high-value CAS business
with attractive and historically resilient margin profile
5
Attractive cash flow growth potential
underpinned by disciplined cost management
Headed by experienced management with full commitment to value creation
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1
Market leader in industries with distinct
entry barriers
Global market positions and structure(a)
Key Barriers to Entry
Covestro Global Position (2014)
BU Polyurethanes
BU Polycarbonates
MDI
TDI
Polyether
polyols(b)
#2
#1
#2
Joint
#1(c)
Other
Players
Other
Players
Other
Players
Other
Players
22%
25%
PC
BU Coatings, Adhesives, Specialties
Aliphatic
isocyanate
derivatives
Polyurethane
dispersions
#1
#1
Other
Players
Other
Players
47%
15%
27%
● Sizable investment requirement
● Use of advanced process technology
● Imperative to operate a global asset base to enable customer proximity
● Persistent demand for product innovation
● Requirement for efficient feedstock integration
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17%
● Economies of “scope” crucial
● Formulation and application know-how
are necessary
● Deep customer relationships and
based on long-term R&D collaborations
● Critical to operate a global platform
Notes: (a) Based on total nameplate capacity for MDI, TDI, Polyether polyols and PCS in 2014A relative to competitors as per Nexant industry analysis; based on total nameplate capacity for Aliphatic
isocyanate derivatives and Polyurethane dispersions in 2014A relative to competitors as per Orr & Boss industry analysis
(b) Covestro Polyether polyols capacity excluding 25kt capacity in Indonesia as site shut down in 2014A
(c) Joint #1 position between Covestro and SABIC based on total nameplate capacity for PCS in 2014A relative to competitors as per Nexant industry analysis
Source: Nexant, Orr & Boss
14
2
Above GDP market growth driving industry
capacity utilization and supporting higher margins
Global trends
covestro.com
Climate change
Growing population
Mobility
Increasing urbanization
15
2
Above GDP market growth driving industry
capacity utilization and supporting higher margins
Industry outlook
Demand outlook(b)
(2014A – 2020E)
Supply outlook
(2014A – 2020E)
Supply (kt)(a)
Demand (kt)
Industry spreads (US$/t)(c)(d)
CAGR
MDI
5.8%
7.990
4.1%
8.430
6.640
Stable
2020E
2014A
2020E
CAGR
CAGR
4.8%
4.0%
2.980
TDI
Utilization rate (%)(d)
CAGR
5.710
2014A
2.240
2014A
2020E
2010A
2012A
2014A
2016E
2018E
2020E
2010A
2012A
2014A
2016E
2018E
2020E
2010A
2012A
2014A
2016E
2018E
2020E
3.350
2.650
2014A
CAGR
2020E
CAGR
4.6%
PCS
Operating rates and margins
1.9%
4.920
4.815
2020E
2014A
5.380
3.750
2014A
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Notes: (a)
(b)
(c)
2020E
Industry spread
Utilization rate
Based on historical and announced future nameplate capacity
Assumes global GDP CAGR 2014A – 2020E of 3.6% as per Nexant analysis
Global industry spread calculated by margin over raw material costs in Europe, US and China weighted respectively by demand in Europe, US and China. Qualitative statements
based on Nexant data
(d) Management estimates additional capacity (not captured in the Nexant data) may come on-stream post-2018 if prevailing market dynamics make it economically rational. These
capacity estimates have been included in this analysis and represent the lower end of the range post-2018
Source: Nexant
16
3
Positioned for profitable volume growth through
well-invested assets and competitive cost position
Competitive production platform
Integrated production model
Process technology leadership
Global world-scale assets
ODC CL2 Technology
Gas-phase TDI plant in Dormagen
Integrated site in Shanghai
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3
Positioned for profitable volume growth through
well-invested assets and competitive cost position
Covestro asset base
Well-invested asset base
Total capex (€m)(a)
8.5%
Well-positioned for volume growth and operational leverage
Capex / sales (%)(a)
Capacity (kt)
High capex
historically; decline in
recent years
+360kt
6.8%
889
2007A
2014A
647
642
2005A
5.6%
4.695kt
4.640kt
2014A
Future
Paid for & under construction capacity
Covestro PUR & PCS nameplate capacity
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Notes: (a) Based on Covestro segment financials as published by Bayer AG
Source: Nexant, Company information
18
4
Historically stable high-margin CAS business
with sustainable competitive advantages
Selected CAS application areas
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4
Historically stable high-margin CAS business
with sustainable competitive advantages
BU CAS at a glance
Global leading supplier of high-performance materials to the coatings/adhesives/specialties industries
#1
6+
2,300+
4,300+
Monomers
Products
Customers
Producer of
Aliphatic
isocyanates(a)
€1.9bn
> 20%
Sales 2014A
EBITDA Margin
CAS market growth(b)
CAS products have all the characteristics of niche coating / ingredients chemicals
• High value-add materials
• Priced on the basis of performance, high level of margin resilience
• Competition with other players based on performance, high entry barriers
• Small proportion of cost to end-customer
• Low volumes and large number of niche-customized products sold
• Significant customer-specific commitments, leading to high switching costs
• Product innovation and R&D critical to success







CAGR
5.3%
2.600
2014A
3.550
3.6%
2020E
GDP growth(c)
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Notes: (a) Based on total Aliphatic isocyanates volume in 2014 relative to competitors as per Orr & Boss analysis
(b) Shows PU raw materials industry demand
(c) Defined as global GDP CAGR 2014A – 2020E
Source: Orr & Boss
20
5
Potential for upside in profitability and
cash generation
Covestro’s financial profile
• Strong recent momentum(c)
Sales (€m)
+3.7%
-2.2%
– positive yoy growth across both
sales and EBITDA in Q1
+7.5%
Sales
– improvement in level of EBITDA
profitability
– positive gross cash flow generation
Adjusted EBITDA(a) (€m)
11.0%
9.5%
-15.1%
Adjusted
EBITDA(a)
Adjusted EBITDA(a) Margin (%)
10.2%
13.1%
14.1%
• Key building blocks in place to
drive positive financial outlook
+10.7%
+15.8%
– favorable market demand outlook
– increasing utilization
of asset base
– disciplined cost focus through
operational efficiency
Gross cash flow(b) (€m)
-6.8%
Gross cash
flow(b)
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– central cost management
+8.3%
+9.5%
• Well-invested asset base
supporting strong volume growth
Notes: (a) Defined as EBITDA before special items; Special items amount to (€27m) in 2012A, €29m in 2013A, (€38m) in 2014A, (€2m) in Q1 2014A and (€21m) in Q1 2015
(b) Defined as income after income taxes, plus income taxes, plus financial result, minus income taxes paid or accrued, plus depreciation, amortization and impairment losses, minus impairment loss
reversals, plus / minus changes in pension provisions, minus gains / plus losses on retirements of noncurrent assets, minus gains from the remeasurement of already held assets in step acquisitions.
The change in pension provisions includes the elimination of non-cash components of EBIT. It also contains benefit payments during the year
(c) Supported by positive currency effects
Source: Based on Covestro segment financials as published by Bayer AG
21
5
Track record of positive free operating
cash flows across the cycle
Cash flow delivery
Covestro net sales vs. FOCF
FOCF(a) (€m)
Net sales (€m)
9.446
10.161
10.435
10.154
9.738
10.832
11.491
11.238
11.651
7.520
673
592
418
345
277
265
275
210
114
110
0
0
2005A
2006A
2007A
2008A
2009A
2010A
Net sales
2011A
2012A
2013A
2014A
FOCF
● Total of €3.3bn in free operating cash flow since 2005A
● Positive free operating cash flow every year including 2008A – 2009A cycle trough
● Well-invested asset base; over €6.5bn invested into new assets over last 10 years
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Notes: (a) Free operating cash flow is calculated by net operating cash flow less cash outflows for property, plant and equipment and intangible assets
Source: Based on Covestro segment financials as published by Bayer AG, company information
22
Section 3
Covestro Strategy for Future Growth
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Leverage industry leadership to capture market
growth and improve asset / cost base
Covestro strategy
1
Capture market growth
over the next 5 years with existing world-scale assets
2
Improve cost position
within 3 years and align overhead costs with best-in-class chemical industry benchmarks
3
Optimize asset footprint
within 3 years through site consolidation, restructuring and efficiency projects
4
Protect and build profitable competitive positions
through focused R&D
5
Embed sustainability
in every element of the strategy
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Multiple levers for EBITDA growth in the future
Building blocks for Covestro future profitability
EDIT DATA
EBITDA
2015E
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Volume
growth and
operating leverage
Cost
improvement
1
2
Note: Chart not to scale
Asset
optimization
Mid-term
EBITDA
3
25
Multiple levers for EBITDA growth in the future
Building blocks for Covestro future profitability
1
Volume growth and operating
leverage
Increased sales
volume through
higher utilization
360kt(a)
New capacities
coming on-stream;
capex largely spent
Covestro growth
initiatives
●Explore partnering
options, incl. swap
arrangement
●Leverage existing
customer proximity and
market access to
achieve growth
●Grow in adjacencies
and new applications
Covestro
capacity
in use 2014
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Covestro
available
capacity in
2017
Notes: (a) Total for PUR and PCS
(b) Transition Services Agreement
(c) Shared Services Center
Source: Nexant
2
Cost improvement
3
Overhead cost savings
 Fixed asset management cost
improvement
 Optimize corporate functions
– IT, Finance, Accounting, HR,
Procurement and Executive
Services to be benchmarked to
identify specific reduction potential
 Streamlining IT infrastructure and
business model
 More tailor-made service function
designs to replace current TSA(b) with
Bayer which will reduce G&A costs
 Leaner SSC(c) approach in Accounting
BU-level specific cost savings
 Streamline sales force
 Focus on core markets and
customers
 Consolidation within regional
functions, product management and
sales
 Adjustment of back-office to business
needs
 Maximize use of existing trade and
distribution channels for markets
without local presence
Asset optimization
– Rolling out best practices in China
and US sites
– Improved processes and software
tools support execution
– New concepts and maintenance
efficiencies driving further
optimization
 Current asset restructuring / efficiency
projects
– Closure of MDI site in Brazil
– TDI EMEA restructuring
 Planned restructuring
– Ongoing site consolidation
26
Global leader in high-tech material solutions
Summary of Key Investment Highlights
1
Leading and defendable global market positions
based on focused portfolio
2
Favorable industry dynamics
with robust above GDP growth prospects in a diverse range of end-markets
3
Positioned to deliver volume growth
through well-invested, large-scale asset base with competitive cost position
4
Portfolio including high-value CAS business
with attractive and historically resilient margin profile
5
Attractive cash flow growth potential
underpinned by disciplined cost management
Headed by experienced management with full commitment to value creation
covestro.com
27
Appendix
Covestro Business Unit Financials
Polyurethanes (PUR)
Polycarbonates (PCS)
Coatings, Adhesives and Specialties (CAS)
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28
Overview of key business unit financials
of Covestro
Net sales by region
Net sales by business unit
Net sales (€m)
Net sales (€m)
11.651
11.491
713
11.238
6%
1.972 17%
2.819 25%
5.987 52%
631
681
6%
1.863
17%
PUR
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11.238
5%
1.498
13%
1.403 12%
3.149
27%
3.048 27%
2.441
21%
2.424 22%
1.372
12%
3.245
28%
2.593
22%
1.915 16%
2.640
6.054
23%
54%
2.820
6.285
24%
54%
2.803
165
469
6%
17%
3.014
165
534
659
24%
764
1.510
2012A
11.651
11.491
2013A
PCS
2014A
CAS
Q1 2014A
54%
1.551
3.014
2.803
5%
18%
25%
330
4.403
38%
4.363 39%
4.441
51%
Q1 2015A
I / O and Others
Note: Based on Covestro segment financials as published by Bayer AG
Source: Company information
38%
12%
Europe
2013A
2014A
North America
Asia / Pacific
12%
28%
24%
736
26%
856
596
21%
718
1.141 41%
2012A
347
Q1 2014A
1.093 36%
Q1 2015A
Latin America / Africa / Middle East
29
Inventor and leader in polyurethanes
Covestro PUR at a glance
• Inventor and producer of polyurethane raw materials
and systems mainly for rigid and flexible foams(a)
• Broad portfolio spanning MDI and TDI (isocyanates)
and Polyether polyols
• Competitive integration from feedstock through to systems
• Global production platform comprising 21 production units located in
US, Europe and Asia(b)
• Total production capacity of c.3,400kt and c.4,800 employees
• Largest business unit generating more than 50% of Covestro sales
#1
manufacturer
of PU
globally(c)
covestro.com
€6.3bn
Sales
2014A(d)
54%
of Covestro
sales in
2014(d)
Notes: All information based on 2014A unless otherwise stated
(a) As well as integral foam, semi rigid foam, RIM, TPU and CASE applications
(b) Includes all MDI, TDI and Polyether polyols units that partially reside at one site; feedstocks, TPU and systems houses are excluded
(c) Based on total combined nameplate capacity for MDI, TDI and Polyether polyols in 2014A relative to competitors as per Nexant industry analysis
(d) Based on Covestro segment financials as published by Bayer AG including Industrial Operations segment and Others
30
Global leading producer of polycarbonates
serving key growth markets
Covestro PCS at a glance
• Joint global leader in polycarbonates together with SABIC
and expected to become #1 in Asia in 2016/2017 in terms of capacity(a)
• Inventor of polycarbonates chemistry
• Offers products and solutions for a wide range of applications
comprising, automotive, IT, electronics, architectural glazing,
industrial lighting, medical technology as well as eyewear
• Optimally integrated production process along the value chain
• Global platform with 5 production sites, 5 R&D centers, 7
compounding centers with BU headquarter in China
• Total current primary production capacity of c.1,300kt and c. 3,600
employees
• Current trough industry margin with upward trajectory as a result of
increasing industry utilization rates(a)
Joint #1
Producer of
PCS
globally(b)
covestro.com
€2.8bn
Sales
2014A(c)
24%
of Covestro
sales
2014A(d)
Notes: (a) As per Nexant industry analysis
(b) Together with SABIC as other #1 player; based on entire polycarbonates nameplate capacity as per Nexant industry analysis
(c) Based on Covestro segment financials as published by Bayer AG
(d) Based on Covestro segment financials as published by Bayer AG including Industrial Operations segment and Others
Source: Company Information, Nexant
31
Niche business focused on the high-end of
the value chain
Covestro CAS at a glance
• Global leading supplier of high-performance materials to the coatings
and adhesives industry and other specialties (e.g. films, textiles, medical)
• Inventor of and technology leader in isocyanate derivatives for coatings,
adhesives, sealants and specialties
• More than 2,300 products based primarily on six monomers, serving over
ten high-end markets and over 4,300 customers
• Product pricing driven by value-added to end-customer, as Covestro CAS
materials are critical to the performance of the final product, but form a
small proportion of the overall cost
• Market-driven innovation in close collaboration with all partners in the
value chain, developing customized solutions for specific problems
(“forward marketing”)
• Efficient production processes benefitting from low cost technology
and integration
• Has delivered stable, resilient margins with strong cash flow generation
and returns
#1
€1.9bn
Producer of
Aliphatic
isocyanates(a)
covestro.com
Sales 2014(b)
Notes: (a)
(b)
16%
of Covestro
sales 2014(b)
Based on total aliphatic isocyanates volume in 2014 relative to competitors as per Orr & Boss analysis
Based on Covestro segment financials as published by Bayer AG including Industrial Operations segment and Others
32