Welcome to LANXESS Annual Report 2012!

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New mid-term growth target

As a company, we are well-positioned to continue our growth course in the years ahead. Against this background, we communicated a new mid-term earnings target in September 2012. We aim to grow LANXESS’s key financial indicator – EBITDA pre exceptionals – to €1.8 billion by 2018. We now intend to achieve our previous target of €1.4 billion EBITDA pre exceptionals by 2014, one year earlier than originally planned.

LANXESS Plans to Continue its Successful Growth Course
LANXESS Plans to Continue its Successful Growth Course

The following elements form the basis for our dual-track strategy of organic and external growth:

Participation in global megatrends

We are systematically aligning our product portfolio – and consequently our research and development activities – to four of the most important global megatrends, where we anticipate steady, above-average growth in the coming years.

The growing desire for mobility, particularly in the emerging markets and especially in China and India, together with the need to improve the environmental compatibility of mobility throughout the world, opens up excellent perspectives for LANXESS. As the world’s leading supplier of high-quality synthetic rubber, we stand to benefit from rising demand for high-performance tires. In addition, our High Performance Materials business unit offers the automotive industry future-oriented concepts for replacing metals with high-tech plastics that reduce vehicle weight and improve fuel efficiency. By 2015 we aim to generate sales of around €2.7 billion with products for green mobility.

Rapid growth in the world’s population is significantly increasing global demand for food. At the same time, eating habits worldwide are changing – with an increase in meat consumption in particular – and there is growing use of crops as alternative energy sources. Our Saltigo and Advanced Industrial Intermediates business units already market a wide range of products to help boost agricultural productivity and protect crops.

Throughout the world, people are relocating from rural areas to cities. The United Nations forecasts that the proportion of city-dwellers in the world population will increase from slightly more than 50 percent at present to just under 70 percent by 2050. All these people will need homes, offices and an efficient infrastructure. These are the applications of our products for the construction sector, for example the inorganic pigments produced by our Inorganic Pigments business unit.

Population growth and climate change are steadily increasing the importance of water as a valuable resource. Studies predict that demand for clean water will exceed the current supply by about 40 percent by 2030. We aim to make a significant contribution to closing that gap. Products and processes marketed by our business units, especially Ion Exchange Resins, are playing an increasingly important role in the treatment of drinking water, wastewater and process water.

A stronger presence in emerging markets

We consider a local presence in emerging markets to be a further strategic success factor. Since 2005, LANXESS has more than doubled sales in the emerging markets to around €3.4 billion. In regional terms, we therefore intend to continue concentrating principally on expanding our business and production capacities in these booming economies, with the focus remaining on the BRICS countries, especially Brazil, India and China.

Continuation of the price-before-volume strategy

Ensuring that our added value is visible to customers is a basic precondition in the successful implementation of our proven price-before-volume strategy. In line with this, we refrain from business if we cannot obtain acceptable prices for our products.


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