Performance Chemicals

COMPANY PROFILE
This presentation contains forward-looking statements based on current assumptions and forecasts made by
LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to
material differences between the actual future results, financial situation, development or performance of the
company and the estimates given here. The company assumes no liability whatsoever to update these forwardlooking statements or to conform them to future events or developments.
LANXESS Corporate Communications (as of: 2012-01-04)
Sales 9M / 2011
EUR 6.652 bn
Sales in the year 2010
EUR 7.120 bn
Employees worldwide
approx. 16,100
Portfolio
Performance Polymers
Advanced Intermediates
Performance Chemicals
Global orientation
47 production sites worldwide
LANXESS is one of Germany’s most important providers of polymers and chemicals
Facts and Figures
Global Presence
Sites and Offices
Our staff is at home all over the world
People all over the world are contributing towards the success of our company. Different perspectives
Menschen
der ganzen
Welt wirken
mit and
am Erfolg
Unterschiedliche
encourage auf
people
to think outside
the box
searchunseres
for newUnternehmens.
and innovative solutions
together.Perspektiven
tragen dazu bei, konventionelle Denkmuster zu verlassen und zusammen ganz neue Lösungen zu finden.
Worldwide
16,070
incl. service units
Employees according to segments
Performance Polymers
4,886
Advanced Intermediates
2,848
Performance Chemicals
5,654
As of: September 30, 2011 / Employees worldwide
Staff
Structure with Global Responsibility
Dr. A. C. Heitmann
(Chairman of the Board )
Corporate Communications
Corporate Development
Executive Human
Resources
Internal Auditing
Dr. W. Breuers
(Board Member)
Aliseca
Procurement & Logistics
Industrial & Environmental
Affairs
Innovation & Technology
Business Units:
AII, BTR, PBR, SCP, SGO,
TRP
Dr. B. Duettmann
(CFO)
Accounting
Corporate Controlling
Investor Relations
Law & Intellectual Property
Mergers & Acquisitions
Tax
Treasury
Dr. R. van Roessel
(Labor Relations)
Human Resources
Information Technology
Business Units:
FCC, IPG, ION, LEA, MPP,
RCH, RUC
LANXESS Board of Management
Relocation of LANXESS Headquarters
With an excellent transport infrastructure, the
drawing power of a major center of science and
industry and an attractive environment the new
location of our company headquarters in Cologne
will help us in the pursuit of our growth strategy.
More than 1,000 employees will move into their
new offices in the former Lufthansa building in
Cologne-Deutz in the second half of 2013.
Headquarters in Cologne
Corporate Responsibility
“Good for business, good for society.” LANXESS’s guiding principles are essentially shaped by a sense of
corporate responsibility. The company’s objective is sustainable, forward-looking development that meets the
demands of economics, ecology and society in equal measure – in short: sustainable development. Accordingly,
this aspect is firmly anchored in LANXESS’s organization, requiring all our employees to act responsibly when
dealing with people, the environment and capital. In practice, this means that we always apply our high
sustainable management standards when making entrepreneurial decisions. This is backed by the firm conviction
that the greatest incentives for and benefits of corporate responsibility are achieved if they are balanced with
entrepreneurial objectives.
Corporate Responsibility
BRIC strategy
A key aspect of LANXESS’s strategy is to focus on the fastest-growing markets for our products,
especially in the BRIC countries. Well targeted investments and acquisitions served to reposition
LANXESS as one of the top suppliers in its key businesses. Between 2005 and 2010, the sales
results for BRIC have doubled as a percentage of group sales. By 2012, more than 38 percent of
capital expenditures will be directed toward Asia and Latin America, compared with less than 20
percent in 2005. In order to journey on the path to continued profitable growth it is of major
importance for LANXESS to focus on the BRIC countries.
Expansion in BRIC
Megatrends – future business fields
The world is becoming ever more mobile. The world needs more and more
food. The world’s population is continuing to shift to major cities. And the
world needs reliable access to clean water more than ever. With its
innovative products and solutions LANXESS is in an excellent position to
master the challenges of the global megatrends
ƒ Mobility
ƒ Agriculture
ƒ Urbanization
ƒ Water
– while naturally always taking sustainability aspects into account.
Megatrends
Innovations are the driving force of every company –
LANXESS is a pioneer in many areas
There are currently around 170 research and development
projects running at LANXESS. Some examples of successfully
launched products are
ƒ
Buna® CB 21: A highly elastic rubber from the Performance
Butadiene Rubbers (PBR) business unit. It reduces the
rolling resistance of tires and helps save driving energy.
This property makes it suitable for future high performance
automobiles.
ƒ
Organo sheets:
These fiber-reinforced plastic sheets show
Stand 31.12.2009 / Mitarbeiter weltweit
a particularly high mechanical performance at lower weight
compared to metal sheets. The high-tech plastics and the
know-how comes from the Semi-Crystalline Products (SCP)
business unit. Organo sheets are going to enter the
automobile industry.
ƒ
Baynox®: A highly effective biodiesel stabilizing product from
the Advanced Industrial Intermediates (AII) business unit.
Innovations
Broad product range comprising premium chemicals, rubber and polymers
ƒ Basic chemicals
ƒ Active ingredients (custom manufacturing) and intermediates for
pharmaceuticals and crop protection products
ƒ Material protection products
ƒ Finishing agents for leather
ƒ Ion exchange resins, especially for water treatment
ƒ Inorganic pigments for coloring concrete and surface coatings
ƒ Dyes and inorganic and organic pigments for coloring plastics
ƒ Plastics additives such as flame retardants and plasticizers
ƒ Solid rubber and rubber chemicals for the rubber and tire industry
ƒ Plastics for automotive, electrical appliances, furniture, sports and leisure
ƒ Perlon wire for technical applications
Product Portfolio
The Business Units
Performance Polymers
ƒ Butyl Rubber
ƒ Performance Butadiene Rubbers
ƒ Technical Rubber Products
ƒ Semi-Crystalline Products
Advanced Intermediates
ƒ Advanced Industrial Intermediates
ƒ Saltigo
Performance Chemicals
ƒ Functional Chemicals
ƒ Inorganic Pigments
ƒ Ion Exchange Resins
ƒ Leather
ƒ Material Protection Products
ƒ Rhein Chemie
ƒ Rubber Chemicals
Overview: Business Units
Grouping business activities into segments
Reporting
structure
Key data
9M / 2011 in €
Key data year
2010 in €
Performance
Polymers
Advanced
Intermediates
Performance
Chemicals
Sales
3.798 bn.
Sales
1.182 bn.
Sales
1.640 bn.
Sales
3.782 bn.
Sales
1.321 bn.
Sales
1.987 bn.
Segment Overview
Performance Polymers
Products that go to the distance
It’s our long standing expertise that has made the difference for LANXESS in the field of Performance
Polymers. All over the world, cars and trucks are on the move with tires produced with our rubber.
Behind this achievement is a century of know-how – after all we invented rubber synthesis in the year
1909. Today we continue to build upon our successes, taking advantage of our position at the
forefront of Performance Polymers technology. Durethan® and Pocan® are plastic materials on the
rise, offering outstanding potential for growth and innovation. They also make a strong contribution to
our Semi-Crystalline Products (SCP) Business Unit.
Reporting
structure
Key data
9M / 2010 in €
Key data year
2010 in €
Performance
Polymers
Advanced
Intermediates
Performance
Chemicals
Performance
Sales
3.798
Rubber
bn.
Sales
3.782 bn.
Segment Overview: Performance Polymers
Performance Polymers – Butyl Rubber
A producer of high-quality rubber products for the tire and rubber
processing industries. Butyl rubber has the special property of being
impermeable to air.
Regular butyl is to be found in inner tubes for trucks and bicycles
and in balls. Special applications include pharmaceutical stoppers
and protective apparel.
Head of Business Unit: Dr. Ron Commander
Performance Polymers – Performance Butadiene Rubbers (PBR)
An international manufacturer of the synthetic rubber polybutadiene. This
is used in car tires, golf balls, technical rubber goods, electronics articles
and much more besides.
Important products:
ƒ
PBR (Polybutadiene Rubber):
Buna® CB
ƒ
SSBR (Solution Styrene Butadiene Rubber):
Buna® VSL, Buna® SL, Buna® BL
ƒ
ESBR (Emulsion Styrene Butadiene Rubber):
Buna® SE
Head of Business Unit: Dr. Joachim Grub
Performance Polymers – Technical Rubber Products (TRP)
The business unit is one of the most important suppliers of specialty elastomers
for the rubber processing industry.
The products are processed into technical rubber goods and tires. They are also
used as modifiers for plastics and as adhesive raw materials.
Product selection:
ƒ
Baypren®
ƒ
Buna® EP
ƒ
Therban®
ƒ
Levapren®
ƒ
Krynac®
ƒ
Perbunan®
ƒ
Levatherm® F
Head of Business Unit: Dr. Günther Weymans
Performance Polymers – Semi-Crystalline Products (SCP)
The Semi-Crystalline Products business unit
has two product lines of high-quality plastics,
Durethan® (polyamide) and Pocan® (polyester).
The primary applications for these products are
in the automotive industry, electrical
engineering and electronics and the
construction sector.
The monofilaments Perlon®, Atlas® and Bayco®
are used for paper machine clothing, fishing
lines, cables and ropes, agriculture and sports
articles.
Head of Business Unit: Dr. Michael Zobel
Advanced Intermediates
Basic and fine chemicals for the world market
The Advanced Intermediates segment combines the business operations in the fields of
basic and fine chemicals. LANXESS is one of the leading global suppliers in these fields.
We owe our strong presence in the global market to our many years of expertise,
successful branding and the intensive global isomer management in our unique aromatic
network.
Reporting
structure
Key data
9M / 2011 in €
Key data year
2010 in €
Performance
Polymers
Advanced
Intermediates
Performance
Chemicals
Sales
1.182 bn.
Sales
1.321 bn.
Segment Overview: Advanced Intermediates
Advanced Intermediates – Advanced Industrial Intermediates (AII)
Advanced Industrial Intermediates is a major supplier of industrial
chemicals. A group of production plants, known as the aromatic network,
provides the basis for production. This enables the BU to provide a very
wide range of products.
The main product groups are chlorobenzenes, chlorotoluenes and cresols,
nitrotoluenes, polyols, oxidation products, amines, monoisocyanates,
benzyl products and inorganic acids.
Head of Business Unit: Dr. Hubert Fink
Advanced Intermediates – Saltigo (SGO)
Development and production of numerous products that are
used as raw materials as well as intermediate products for crop
protection agents and pharmaceutical active ingredients, and
other high quality fine chemicals.
Corresponding supply of services.
Head of Business Unit: Wolfgang Schmitz
Performance Chemicals
LANXESS makes colours brighter
In the field of special chemicals, LANXESS enjoys an excellent reputation with its colourful
brands. Our organic plastic colorants are the brightest stars on the horizon in this market.
By means of a global sales and service network we guarantee our stars keep shining with
the highest possible quality through long-term patent protection for our technologies.
Reporting
structure
Key data
9M / 2011 in €
Key data year
2010 in €
Performance
Polymers
Advanced
Intermediates
Performance
Chemicals
Sales
1.640 bn.
Sales
1.978 bn.
Segment Overview: Performance Chemicals
Performance Chemicals – Functional Chemicals (FCC)
Phosphorous Chemicals
Polymer Additives
Colorants
ƒ Flame retardants
ƒ Intermediates
ƒ Special phosphorous
products
ƒ Complexing and
dispersing agents
ƒ
ƒ
ƒ
ƒ
ƒ Solvent dyes for plastics
ƒ High performance
pigments
ƒ Pigment preparations
ƒ Colorants for special
applications
Plasticizers
Blowing agents
Bonding agents
Modifiers
Head of Business Unit: Jorge Alberto Nogueira
Performance Chemicals – Inorganic Pigments (IPG)
A globally operating manufacturer of iron oxide pigments with a broad
range of products.
Coloring of building materials such as
ƒ roofing tiles and pavers
ƒ surface coatings
ƒ plastics and paper, plus
ƒ special applications in the fields of toner pigments, arsenic adsorbers and catalysts
Head of Business Unit: Jörg Hellwig
Performance Chemicals – Ion Exchange Resins (ION)
Ion Exchange Resins is one of the world’s most
important providers of ion exchange resins,
absorbers an functional polymers. The products
are sold world-wide under the brand name
Lewatit® and Ionac®.
ƒ
water treatment
ƒ
the food industry
ƒ
catalysis and chemical processes
ƒ
the pharmaceutical industry
Head of Business Unit: Jean-Marc Vesselle
Performance Chemicals – Leather (LEA)
An important supplier of leather chemicals and
system solutions with a broad product portfolio
for all stages of leather manufacture
ƒ
inorganic and synthetic tanning materials
ƒ
preservatives and fat-liquoring agents
ƒ
dyes
ƒ
tanning and finishing agents
Head of Business Unit: Dr. Markus Eckert
Performance Chemicals – Material Protection Products (MPP)
Comprehensive range of biocides and specialty active ingredients for
ƒ
wood preservatives/antifouling products
ƒ
disinfectants/personal care products
ƒ
beverage preservatives
ƒ
industrial preservatives (paints, mineral slurries, dry film and
in-can preservation, corrosion inhibitors etc.)
Head of Business Unit: Dr. Torsten Derr
Performance Chemicals – Rhein Chemie (RCH)
A cross-industry manufacturer of custom-made products and services.
Rhein Chemie delivers Additives for the rubber, lubricants,
polyurethanes and plastics industries.
The range includes
ƒ
customer-specific products
ƒ
specialties
ƒ
services
Head of Business Unit: Dr. Anno Borkowsky
Performance Chemicals – Rubber Chemicals (RUC)
A worldwide manufacturer and supplier of rubber chemicals.
These are used in the tire industry and in the manufacture of
technical rubber goods.
Important brands and products:
ƒ
Vulkanox®, as antioxidants
ƒ
Vulkacit®, as accelerators
ƒ
Specialty chemicals
Head of Business Unit: Luis López-Remón
Group Functions as service providers for the Business Units
ƒ Accounting
ƒ Global Procurement & Logistics
ƒ Investor Relations
ƒ Aliseca
ƒ Human Resources
ƒ Law & Intellectual Property
ƒ Corporate Communications
ƒ Industrial & Environmental Affairs
ƒ Mergers & Aquisitions
ƒ Corporate Controlling
ƒ Information Technology
ƒ Tax
ƒ Corporate Development
ƒ Innovation & Technology
ƒ Treasury
ƒ Internal Auditing
Overview: Group Functions
Accounting (ACC) – The Group’s “nervous system“
Accounting collects and checks information on all business
transactions and presents it in a structured form. The core
component is the profit and loss statement. The responsibilities of
this group function include compilation of the consolidated financial
statements, financial and quarterly reports, accounting for the main
German LANXESS companies and support activities for country
companies within the reporting process.
Head of Group Function: Gerhard Schmitz
Aliseca (ASC) – A reliable and competent partner
The Aliseca group function supports LANXESS business
units all around the world, providing services that are
essential for the manufacture of chemical products and
their supply to our customers. The service mainly covers all
aspects of maintenance. An additional objective of the
group function is to further develop key technical
competencies for LANXESS and to strengthen LANXESS
business units through knowledge transfer.
Head of Group Function: Dr. Michael Kortenbusch
Corporate Communications (COM) – The global ambassador for LANXESS
The group function Corporate Communications is responsible
for the strategic and long-term positioning of the LANXESS
corporate brand.
The entire array of communications disciplines is employed to
achieve the communications objectives. The aim is to
continuously develop the positive perception of LANXESS by
internal and external stakeholders.
Head of Group Function: Christoph Sieder
Corporate Controlling (CON) – The planners and analysts
The main responsibilities of Corporate Controlling are
planning, reporting, analyzing, controlling and managing
LANXESS’s key financial and business parameters,
based on the income, assets and liabilities and cashflow
statements. Management decisions and operational
transactions as well as medium-term business planning
are prepared, supported and based on these.
Head of Group Function: Michael Pontzen
Corporate Development (DEV) – Setting the strategic course for the corporation’s future
The most important strategic decisions are prepared in the Corporate Development
group function; from total business reorganization (corporate strategy) through
business acquisition and disposition (active portfolio management) to allocation of
key investments (strategic allocation of resources). Corporate Development is also
in charge of assisting the strategic development of all business units and provides
support to business units in the form of market and competition analyses
(Competitive Intelligence).
Corporate Development (DEV) supports the Board of Management with the
organization and implementation of Board of Management projects and initiatives.
Head of Group Function: Dr. Uwe Boltersdorf
Global Procurement & Logistics (GPL) – LANXESS’s centrally managed purchasing organization
and supply chain provider
Procurement ensures the provision of all
necessary materials, equipment and
services. A global procurement network
enables the use of purchasing synergies,
so that LANXESS can be as effective as
possible on the market and utilize price
benefits. Its main objective is to ensure the
effective positioning of the entire LANXESS
purchasing power in procurement markets
in order to achieve competitive advantages
for the business units. Furthermore GPL
guarantees the efficiency of the global
supply chain for LANXESS products.
Head of Group Function: Holger Hüppeler
Human Resources (HR) – The success of a Group lies in its people
The knowledge, skills and motivation of staff are essential requirements for the economic success of
LANXESS. The objective of the Human Resources group function is to harmonize these three assets
for the benefit of the business. By adopting the appropriate personnel strategies, for example result
and performance-oriented compensation systems or up-to-date measures for personal development,
HR is contributing to the success of the business.
Head of Group Function: Zhengrong Liu
Industrial and Environmental Affairs (IEA) – Legal and political interface
The IEA group function ensures compliance with legal requirements in the areas
of environmental and chemical safety, hazard and risk assessments and product
and site safety. IEA is likewise responsible for the registration and licensing of
LANXESS products, defending products against the authorities and political
lobbying as well as for site and asset management. IEA also supports business
units and group functions in the implementation, maintenance and development
of an integrated and process-oriented management system to continuously
improve business processes designed to assure long-term business security.
This group function is also responsible for documentation control at LANXESS.
Head of Group Function: Georg van Bracht
Information Technology (IT) – IT system planning and operation
The IT group function provides IT support for the relevant business
processes. This includes provision of the infrastructure and also the
development and operation of applications at the lowest possible cost
while maintaining internal and external standards.
Head of Group Function: Christoph Schulze-Berge
Innovation & Technology (INN) – Our investment in the future
The Innovation & Technology group function makes a significant contribution to
increasing added value at LANXESS.
Its main tasks include:
ƒ
Optimizing existing, and developing new, production processes
ƒ
Developing new products and product applications to safeguard the
economic success of LANXESS
In addition to utilizing and pooling in-house expertise, we also incorporate external
know-how into LANXESS processes by cooperating closely with key research
organizations. State-of-the-art tools and methods in the group function, combined
with effective innovation and information management, ensure the efficiency of
research and development activities.
Head of Group Function: Dr. Paul Wagner
Internal Auditing (IA) – Keeping an eye on order and efficiency
Internal Auditing verifies that business processes are
run efficiently and properly. The LANXESS businessoriented internal audit focuses first and foremost on
seeking methods to simplify structures and thus reduce
costs.
As well as efficiency, auditors’ investigations also focus
on compliance with legal procedures and directives. If
they become suspicious, for example of any fraud,
price rigging or sexual harassment, the Compliance
Committee will be called in.
Head of Group Function: Stefan Klamroth
Investor Relations (IR) – Interface between the capital market and LANXESS
The responsibilities of Investor Relations include arrangements for direct
and indirect contact (e. g. roadshows, investor conferences, Annual
Stockholders’ Meetings and annual reports) with investors, analysts,
potential financiers and capital market multiplicators. The objective is to
ensure a continuous flow of information about LANXESS and to create a
long-term and trusting "relationship" with the capital market by means of
an ongoing dialog with the financial community. In addition, internal IR
communication should make the company more sensitive towards
subjects relevant to the capital market and its own specific
communication needs.
Head of Group Function: Oliver Stratmann
Law & Intellectual Property (LIP) – Legal management and control of all LANXESS activities
Law & Intellectual Property (LIP) is an instrument of
the Board of Management for ensuring that all
LANXESS business activities are legally compliant.
LIP is thus the point of contact for all relevant issues
and its objective is to organize, protect and optimize
the legal compliance of LANXESS business activities
around the world. Thus in addition to General Law
(GL) and Intellectual Property Rights (IPR), LIP also
looks after other functions such as collection of
accounts receivable and administrative functions for
LANXESS subsidiaries.
Head of Group Function: Dr. Jochen Schroer
Mergers & Acquisitions (MA) – The specialists for corporate transactions
Mergers & Acquisitions (M & A) extends beyond merging and
purchasing corporations to include divestments (e. g. of products,
product groups, plants, investments, business units) and cooperations (e. g. joint ventures, strategic partnerships). Its work
centers on the management and coordination of M & A projects.
In addition, the MA group function maintains contact with
competitors, strategic investors and financial investors as well as
investment banks and other financial advisors.
Head of Group Function: Marcel Beermann
Group Function Tax – The skilled tax advisor
The tax experts are responsible for optimizing the structure of the Group
and its companies from a tax point of view. They are also responsible for
ensuring compliance with fiscal obligations. This GF is involved with the
accounting, balance sheet compilation and planning processes for
LANXESS and takes care of the Group’s tax payments. It also provides
guidance on drawing up contracts for the sale and/or purchase of business
divisions, setting up joint ventures and other legal relationships within the
Group and with external partners.
Head of Group Function: Jürgen Topoll
Group Function Treasury (TR) – The guardians of the vault
One of the main tasks of the Group Function
Treasury at LANXESS is to ensure that the
company has the financial headroom to achieve
its corporate goals. Principal activities include
steering the global banking portfolio, obtaining
financing from the capital market and banks, and
actively communicating with the rating agencies.
The Group Function Treasury also manages all
financial risks from a global perspective, plans
financing and liquidity, and oversees the global
insurance programs.
Head of Group Function: Christoph Koch
The team stands firm, the policy fits the bill and the chemistry is right
LANXESS is a leading specialty chemicals company with sales of EUR 7.120 billion in 2010 and currently around 16,100
employees in 30 countries. The company is represented at 47 production sites worldwide. The core business of LANXESS
is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
But LANXESS wants more: Now that the restructuring has created a solid foundation for the future, the long-term objective
is to become an active key player in the national and international chemicals market.