LANXESS AG is the parent company of the LANXESS Group and functions largely as a management holding company. LANXESS Deutschland GmbH and LANXESS International Holding GmbH are wholly owned subsidiaries of LANXESS AG, and in turn control the other subsidiaries and affiliates both in Germany and elsewhere.

The following are the principal companies wholly owned by LANXESS AG directly or indirectly:

In March 2012, we acquired U.S. company Tire Curing Bladders, LLC, Little Rock, Arkansas. The company is a leading manufacturer of vulcanization bladders for the tire industry and primarily serves the North American market. The acquisition, which has been assigned to the Performance Chemicals segment, represents a next step in our Rhein Chemie business unit’s strategy of building on its position as a premium supplier to the tire industry by moving into the manufacture of vulcanization bladders for the tires used on trucks, agricultural vehicles and construction machinery.

In September 2012, we strengthened our innovative product portfolio of lightweight materials for the automotive industry by acquiring Bond-Laminates GmbH, which is based in Brilon, Germany. The company specializes in developing and producing customized continuous fiber-based composite sheets. The business, which has some 80 employees, was assigned to the High Performance Materials (formerly Semi-Crystalline Products) business unit of the Performance Polymers segment. Alongside the automotive sector, other key customer markets are the sporting goods and electronics industries.

LANXESS AG has a dual management structure consisting of the Board of Management, which manages the company, and the Supervisory Board, which oversees the Board of Management with the assistance of an Audit Committee formed from among its members to advise on financial matters. The Board of Management shapes Group strategy and manages resource allocation, infrastructure and organization. As the Group management company, LANXESS AG is responsible for financing and for communication with the company’s key stakeholders.

For additional information, please see the Corporate Governance section of this Annual Report.