Welcome to LANXESS Annual Report 2012!

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Taking action on demographic change

In view of the challenges posed by demographic change, LANXESS cooperated closely with the employee representatives in 2009 to develop XCare, a comprehensive demographic concept for our German companies based on the collective agreement on lifelong worktime and demography in the chemical industry. In 2012, this project focused in particular on the issues of health management and preventive medicine and balancing career and family life. This project aims to find answers to the challenges posed by a steady rise in the average age of our workforce coupled with a shortage of skilled young people.

The XCare project was initially based on an extensive demographic analysis of the entire LANXESS organization, which resulted in five areas of activity – people and health; work and training; time and organization; career and family life; and savings and retirement provision.

One aspect of work and training was the analysis of our trainee figures from a demographic perspective. Among the measures based on our findings was the decision to increase the number of vocational training places we offer. By 2015, some 600 training places will be available at our sites throughout Germany.

Vocational training

In 2012, 140 young people (108 men and 32 women) accepted the opportunity to start one of the 16 technical, commercial or scientific training programs at LANXESS. A further 26 young people have chosen our four combined vocational training and study programs. We are planning to increase our offering of combined engineering programs in 2013. Our aim in the medium term is for combined programs to account for 10 percent of our vocational training positions in Germany.

With a total of 386 trainees in 16 different career paths (as of December 31, 2012), LANXESS continues to train more young people than it needs to meet its own requirements. In 2012, we gave permanent and temporary positions to more than 50 percent of those who completed their vocational training with us in Germany.

LANXESS has always given priority to training young people as a means of safeguarding the company’s future and as an element of our social responsibility. In 2012, we once again strengthened the marketing activities for our vocational training programs using a range of media, attended all major regional career fairs and visited schools. Through events of our own such as “NeXt Azubi” (NeXt Trainee), we address young people with an interest in our company and give them valuable guidance for their later career choices. We took part in Germany’s Girls’ Day for the first time in April 2012, providing girls with a deeper insight into technical areas of activity in our company. In addition, our one-year orientation program XOnce provides young people with useful guidance on their way to a later traineeship if they are not ready to take this route at the current time.

Demographic management

Another main focus of our XCare demographic project in Germany is balancing career and family life, which remains an important issue for a large number of LANXESS employees. 5.3 percent of our employees in Germany aged between 20 and 40 made use of the option to take parental leave. Of this figure, almost 46 percent were fathers. In 2011, in support of parents looking for care for their children, we started offering our employees reserved places at childcare facilities in Cologne ahead of the relocation of our company headquarters to that city planned for 2013. Construction also started on a kindergarten close to the Leverkusen site in November 2012.

Providing care is an important aspect of career and family life. We aim to support employees in the care of dependents, either financially or in terms of time. In line with the German government’s draft legislation on family caregiver leave, which came into force in 2012, we were one of the first companies to conclude a comprehensive agreement with employee representatives on a multi-stage caregiving program that includes advice from an external service provider, paid short-term release from duties, and individually agreed part-time working for caregivers. We added two further modules to this program during the reporting period – a care loan at favorable terms and the support of an external service provider in arranging care placements close to all our German sites. More than 60 information events took place at our German sites throughout 2012.

Caregiver leave remains at the heart of the program. This allows employees to reduce their working time to a greater extent than their salary during the care phase and to make up the shortfall when they return to work. 17 employees have already taken advantage of caregiver leave and other job release options. Given the considerable interest in advice and further information on this issue, we anticipate increased demand in the coming months.

Health and preventive medicine

During the reporting year, we also intensified communication in the area of people and health and launched new projects. Our primary goal is to raise awareness of health issues among employees and managers and encourage them to adopt healthy behaviors at work and in their free time. We take seriously our responsibility of involving the employees and managers concerned in making workplaces as healthy as possible, but at the same time rely on the individual responsibility of our workforce. In Germany, our reintegration management and occupational health management programs are based on corresponding agreements with the employee representatives.

As part of our reintegration management program, we recently started giving individual support to employees who are suffering illness or have had long periods of absence from work due to ill health in the past twelve months. To this end, workplace integration teams comprising integration officers and employee representatives have been in place at all our German sites since 2011.

In the area of occupational health management, further facilities have joined those originally selected for pilot projects in taking the first steps toward introducing this system. Another roll-out is planned in the course of 2013. As a rule, the projects are steered by working groups made up equally of employee and employer representatives who analyze the existing health situation and develop a participatory action model. The projects encompass management workshops, prevention concepts, advice on ergonomics for plant workers, help to give up smoking and nutrition programs for shift workers.

Experience from the pilot projects shows that our employees are particularly keen to obtain personal advice about their health and the possible need for preventive action. Building on this awareness and knowledge about their own health, employees are also responding well to follow-up offers. Special medical check-ups are offered specifically for top management. Around 500 eligible managers are invited to regular appointments.

In the area of saving and retirement provision, we reached agreement with the employee representatives in Germany in 2012 on further allocation options for the long-term account. These include integration of the demography fund contribution, a provision of the 2012 collective bargaining agreement. In addition, we are introducing comprehensive accident insurance for all non-managerial employees in Germany from the beginning of 2013. Cover will apply worldwide, both at work and at home.

All benefits with respect to work and family, health and retirement provision apply to the core workforce. Individual benefits may vary regionally and be adjusted locally to our employees’ needs. Variable remuneration systems have been implemented for 78 percent of our employees worldwide.

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