Lanxess Fact Book3.1edition 2011-2

LANXESS Fact Book
Edition 3.1
TABLE OF CONTENTS
LANXESS – Business Segments Financials

Energizing Chemistry
8 Overview 24 – Performance 87 Five years overview
13 Strategy Polymers 90 Quarterly overview
17 Innovation 27 Butyl Rubber 92 Financing
19 Corporate Responsibility 31 Performance Butadiene 93 Excursion
Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline Products
44 – Advanced
Intermediates
47 Advanced Industrial
Intermediates
51 Saltigo
56 – Performance
Chemicals
59 Material Protection
Products
62 Inorganic Pigments
66 Functional Chemicals
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange Resins
Dear Investors and Analysts, October 2011
The LANXESS Board of Management always welcomes an opportunity to acknowledge the

support and engagement of our investors. This publication represents just part of our ongoing
effort to maintain a high level of transparency and to provide you with all the data and informa-
tion you need.
LANXESS is a young company. We have been “energizing chemistry” as an independent

entity only since 2005. But we have deep roots in some of today’s most dynamic and rapidly
expanding sectors of the chemical industry. Our Performance Polymers segment continues
to benefit greatly from the trend toward increased mobility in the developing world. Our Ad-
vanced Intermediates and Performance Chemicals segments are similarly well-positioned with
respect to megatrends involving agriculture, urbanization and the global water supply. All 13
of our business units are targeted for growth, particularly in the BRIC countries that have been
driving the global economy.
We continue to seek out new opportunities for growth – both organic and external – and are
working steadily toward increasing the group’s EBITDA to new levels. This comes on top of
our performance in the past five years, which resulted in an EBITDA increase of 40 percent, in
spite of the global financial crisis.
In our continuing quest for sustainable growth, we fully understand the importance of listening
to our investors and looking to the capital markets for feedback and guidance. Analysts and
investors represent a primary resource that cannot responsibly be ignored in shaping the fu-
ture of any serious enterprise. At LANXESS, we believe in providing you with all the information
we can, so that your energies and insights can be joined with ours as we lead our company
forward. We expect that this collaboration will continue to stand us in good stead through the
coming years.
Sincerely,
Axel C. Heitmann Bernhard Düttmann

Chairman of the Board of Management Chief Financial Officer
INVESTMENT HIGHLIGHTS:
LANXESS is one of the world’s leading chemical companies, with a focus on

specialty products.
Organizational strength: LANXESS’ lean and efficient global structure enables fast
decision-making that permits the company to sustain a competitive edge.
A proactive and flexible approach served LANXESS well during the financial and
economic crises, which struck global markets in 2008.
Competitiveness: LANXESS has established powerful market positions on a global

scale with premium products and strong brands in the fields of synthetic rubber,
high-tech plastics, intermediates, fine chemicals and application oriented activities in the
field of performance chemicals.
Growth: The Company serves the key global megatrends associated with mobility,
urbanization, agriculture and water. LANXESS is in the process of accelerating
its organic and external growth and has set ambitious new targets, including an increase
in EBITDA to €1.4 bn in 2015.
LANXESS relies on these strategic cornerstones for accelerated growth:

Capitalize on megatrends
Ongoing efficiency improvements
Premium products
Global cost competitiveness
Active portfolio management
Price before volume strategy
Product and process innovation
Focus on BRIC
Disciplined organic and external growth
Sound financial discipline
Sustainable dividend strategy: LANXESS first initiated dividend payments in 2006

and is committed to the sustainable profit participation of its shareholders.
LANXESS –
Energizing Chemistry
LANXESS – Energizing Chemistry

LANXESS – Business Segments Business Segments Business Segments Financials

Energizing Chemistry – Performance Polymers – Advanced – Performance
8 Overview Intermediates Chemicals
13 Strategy
17 Innovation
19 Corporate
Responsibility
Agenda
1. LANXESS – Energizing Chemistry

- Overview
- Strategy
- Innovation
- Corporate Responsibility
2. Business Segments
3. Financials
LANXESS – A leading specialty chemicals group
Performance Polymers Advanced Intermediates Performance Chemicals
Globally No. 1-3 Europe No. 1-2 No. 1-4 in niches
 Global technology leader in synthetic  Leading suppliers of custom synthesis  Application-orientated specialty
rubber and polyamide and basic chemicals (agrochem-related) chemicals
 Supporting trends:  Supporting trends:  Strong brands and technology leader
- mobility, growing population in Asia - increasing crop demand based on  Supporting trends:
- high-performance tires growing world population - scarcity of purified water
- vehicle weight reduction - need of farmers to raise yields - rising middle class in APAC
- tire labeling - industry consolidation - ongoing market consolidation
2 LANXESS Fact Book – Overview
8 LANXESS Fact Book

13 Strategy
17 Innovation
19 Corporate
Responsibility
Portfolio management allows for regrouping of LANXESS

businesses along chemical segmentation
Performance Polymers Advanced Intermediates Performance Chemicals
Butyl Rubber Advanced Industrial Intermediates Material Protection Products
Performance Butadiene Rubbers Saltigo Inorganic Pigments
Technical Rubber Products Functional Chemicals
Semi-Crystalline Products Leather
Rhein Chemie
Rubber Chemicals
Ion Exchange Resins
Sales: >500 m Sales: 200 m – 500 m Sales: <200 m

LANXESS Fact Book – Overview
LANXESS Board of Management: directly connected to the

Group Functions and Business Units
Axel C. Heitmann Werner Breuers Rainier van Roessel Bernhard Düttmann
(Chairman of the Board) (Member of the Board) (Labour Relations Director) (Chief Financial Officer)
Corporate Aliseca Human Resources Accounting

Communications Industrial & Environmental Information Technology Corporate Controlling
Corporate Development Affairs Business Units: Investor Relations
Executive Human Innovation MPP, IPG, FCC, LEA, Law & Intellectual
Resources Procurement RCH, RUC, ION Property
Internal Auditing Business Units: Mergers & Acquisition
BTR, PBR, TRP, SCP, Tax
BAC, SGO Treasury
LANXESS Fact Book 9


13 Strategy
17 Innovation
19 Corporate
Responsibility
2003-2005: immediate focus on transformation of LANXESS

since the spin-off
2003-11-07 2004-09-22 2004-11-17 2005-06-03 2005-06-20
Decision made Signing of Extraordinary Announcement of 1st phase of Admission into MDAX
on the strategic the spin-off Stockholders’ restructuring
reorganization agreement Meeting of Bayer AG –
2005-06-06
of the Bayer acceptance of spin-off by
Buyback of Mandatory
Group Bayer’s shareholders
Convertible
2003-2005
2004-03-18
Announcement of the name 2004-11-25/26 2005-06-16 2005-08-25
LANXESS created from a First press and 2005-01-31 1st Annual Announcement
combination of the words "lancer” analyst Initial quotation at the Stockholders’ of 2nd phase of
(to launch) and "success” conference Frankfurt Stock Exchange Meeting restructuring
2006-2007: first upgraded ratings show achievements of

ongoing transformations
2006-03-01 2006-04-04 2006-09-15 2006-12-14 2007-07-18/31 2007-11-13
Carve-out of Announcement of 1st Capital Announcement: Ratings upgraded by LANXESS signs
the BU FCH 3rd phase of Markets Day acquisition of Moody’s to Baa2 and new seven-year
to form restructuring (CMD) CISA S&P to BBB €1.4 bn credit facility
Saltigo
2006-2007
2006-07-24 2007-06-29
Announcement of 4th Lustran Polymers JV with
phase of restructuring 2007-12-13
2006-03-01 INEOS announced
Announcement:
Divestment of BU PAP 2006-12-31 acquisition of
and BU FIB concluded Divestment of TPC concluded Petroflex
10 LANXESS Fact Book

13 Strategy
17 Innovation
19 Corporate
Responsibility
2008-2010: resuming growth after responsible crisis

management and future orientation in rough times
2008-06-26 2009-08-12 2009-09-12 2010-05-17 2010-08-06
Announcement: Announcement of Anniversary: “100 Years Groundbreaking “Challenge 09-12”
acquisition of “Challenge09-12” of Synthetic Rubber” ceremony partly put on hold
Jinzhuo Chemicals butyl rubber
Company Ltd. 2010-01-31 plant Singapore
(China) Listing anniversary
“5 years of LANXESS”
2008-2010
2009-01-30 2009-06-08 2010-05-07 2010-09-15/16
Announcement Acquisition of Gwalior Chemical Industries Partnership in China: CMD: LANXESS
of “Challenge09” Ltd. (India) and Jiangsu Polyols Chemicals signing LANXESS and announces new
Co. Ltd. (China) Taiwan’s TSRC Corporation ambitious growth
targets
Portfolio transformation towards higher earnings growth
Divested Year Leadership Cyclicality Profitability

Acquired Position Expectation
Fibers 2005 Weak High Low
Paper 2005 Moderate Moderate Medium
Textile Processing Chem. 2006 Weak Moderate Medium
Lustran Polymers 2007 Good High Low
CISA (LEA) 2006 Good Low High
Petroflex (PBR) 2007 Good Low High
Jinzhuo Chemicals (IPG) 2008 Good Moderate High
Gwalior Chemicals (BAC) 2009 Good Low High
Jiangsu Polyols (BAC) 2009 Good Low High
Darmex (RCH) 2011 Good Low High
Syngenta Mat. Prot. (MPP) 2011 Good Low High
DSM EPDM (TRP) 2011 Good Moderate High
LANXESS Fact Book 11


13 Strategy
17 Innovation
19 Corporate
Responsibility
Worldwide present serving a broad customer range with

varying demand patterns
LANXESS performance by region 2010 Sales distribution
by industry 2010
52%
28%
33% 23%
19% 13% Others
Others
15%16%
9%
Tires
Tires
29% Asia/Pacific
Germany
North America 18% 18% Construction
Construction
EMEA w/o Agro

Agro
Germany Automotive
Automotive
13% Chemicals
6% 8% Chemicals
Latin America Consumer

Consumer
goods
goods
Capex*: 501 m Sales: 7,120 m Employees: 14,648
*net of finance lease and net of projects financed by customers

LANXESS – Improvement trend of financials, based on

strategy implementation
2003 2004 2005 2006 2007 2008 2009 2010
EBITDA* [ m] 311 447 581 675 719 722 465 918

pro form
Net financial debt [ m] 1,429 1,135 680 511 460 864 794 913
Net financial debt / EBITDA* 4.6x 2.5x 1.2x 0.8x 0.6x 1.2x 1.7x 1.0x
a data
Gearing [%] 128 101 54 36 30 65 55 52

only
Underlying EPS** (2.23) 0.65 1.19 2.69 3.36 3.44 1.31 4.81
Dividend [] 0.25 1.00 0.50 0.50 0.70
Ongoing performance improvement
*pre exceptionals; **EPS pre exceptionals, based on actual taxrate, 2008 data adjusted for change in pension accounting

13 Strategy
17 Innovation
19 Corporate
Responsibility
Agenda

- Overview
- Strategy
- Innovation
3. Financials
11
2004-2010 transformation and growth: + >100% EBITDA*
EBITDA* [ million]
918
719 722
675
+>100%
580
447 465
2004 2005 2006 2007 2008 2009 2010
Growth Growth
Transformation Crisis
*pre exceptionals
LANXESS Fact Book – Strategy


13 Strategy
17 Innovation
19 Corporate
Responsibility
Sustainable success based on LANXESS DNA
 Technology-driven specialty chemical portfolio

Compelling
portfolio
 Focus on “Green Chemistry”
 Global footprint
Regional
diversity  Targeted investment in growth markets
Leadership  Best-in-class asset base

aspiration
 Globally competitive product portfolio
Management
excellence
 Effective management of complexity
 Entrepreneurial performance-driven culture
LANXESS capitalizing on global megatrends
Mobility Agriculture
Urbanization Water

13 Strategy
17 Innovation
19 Corporate
Responsibility
Dual track growth strategy
 Targeted investments in profitable

existing business lines
Organic  Product innovation
growth
 Efficiency programs
 Pricing power
 Targeted accretive investments to

External
complement and strengthen our
growth
portfolio
~€1.4 bn EBITDA* through disciplined and targeted growth

by 2015
EBITDA* [€ million]
~1,400
~800
2:1
447
2004 Restructuring Organic External 2010 Organic External 2015

Minimum EBITDA* growth
for each business: 5% CAGR
+ ~80% + ~80%
*pre exceptionals


13 Strategy
17 Innovation
19 Corporate
Responsibility
Ambitious growth target for 2015
EBITDA pre exceptionals

2015
~€1.4 billion

13 Strategy
17 Innovation
19 Corporate
Responsibility
Agenda

- Overview
- Strategy
- Innovation
3. Financials
Innovation as key element in the LANXESS success story
Innovation budget [€ m] / Innovation headcount /

% of total sales % of total headcount
Process Engineering
2009 2.0% 101 2009 3.5% 505
2008 1.5% 97 2008 3.0% 441
2007 1.3% 88 2007 2.8% 408
2006 1.3% 87 2006 2.4% 390
Innovation projects Worldwide innovation center

Product Innovation
Canada France Germany

2009 160 China
2008 110
2007 110 USA
2006 120
Brazil
LANXESS Fact Book – Innovation


13 Strategy
17 Innovation
19 Corporate
Responsibility
Innovation culture drives LANXESS success
R&D setup at LANXESS

 R&D conducted in each business unit for maximum customer and market
proximity
 Central coordination department boosting interaction and knowledge sharing
between business units
 First-class support departments ensure optimal implementation of projects
 Integration of existing development networks
 Focus on quick time-to-market
 Optimized project management for maximum added value with minimum
workload
 In 2009 LANXESS had a total of 84 major research partnerships
(universities: 37, suppliers or customers: 38, research institutes: 9)
80% of R&D projects are market-ready within two years
Maximum market-orientation fosters turnover potential of

nearly 600 m till 2013
R&D focus Turnover potential by business segments
Markets
~600 m
New
15%
cals
~200 m Ch emi
a nce
form
Per diate
s
d In terme
ance
Existing
~100 m Adv
70% 15% ers
Polym
rm ance
Perfo
Products/
Existing New processes
2009 2010 2011e 2012e 2013e

Maximum market-orientation Performance Polymers Advanced Intermediates Performance Chemicals

13 Strategy
17 Innovation
19 Corporate
Responsibility
Agenda

- Overview
- Strategy
- Innovation
3. Financials
Corporate Responsibility at LANXESS – Valuable for business

and for society
Corporate Responsibility at LANXESS
Good for business Good for society

Sustainable growth Protection of climate and
Increasing awareness among environment
customers Social responsibility
Increasing awareness among Education and advancement
public Safety and security
Strengthening reputation
Water Climate Protection Education

Direct link to business /
LANXESS know-how
LANXESS Fact Book – Corporate Responsibility


13 Strategy
17 Innovation
19 Corporate
Responsibility
Water – LANXESS with a key role in resolving the world’s

water issues
Water – The crude oil of the 21st century
Importance to LANXESS LANXESS contribution
Over a billion people without access to clean drinking Innovative products: LANXESS products used to
water thus water will globally become one of the most conserve, transport, clean and save water globally, e.g.
important and failed resources over long term LANXESS ion exchange resins
Stewardship: efficient use of water due to highly
With its know-how and innovative water treatment modern facilities and optimized processes, e.g. around
products, LANXESS plays an important role in solving 50% water savings in Porto Feliz/Brazil
global water problems Responsibility programs: e.g. by support of AMREF*
LANXESS establishes water supply for nearly 10,000
students in Tanzania
*AMREF = African Medical & Research Foundation

Climate Protection – LANXESS with important contribution to

this long-term challenge
Climate Protection – The number 1 challenge
Climate protection is at the top of world political Innovative Products: LANXESS offers innovative
agenda: curtailing consequences of greenhouse effect products and solutions to reduce CO2 emissions, e.g.
as top priority of industry and society today rubber innovations for high-performance tires
Climate protection is a long-term challenge and helps Climate-friendly production: reduction of own direct
to assure the future of the company emissions as well as conserving natural resources and
LANXESS firmly committed to meeting its climate use of renewable energy sources where possible
protection responsibilities, invests in sustainable Climate protection target for Germany: emission
solutions reduction of 80% by 2012 compared to 2007 already
achieved in 2009

13 Strategy
17 Innovation
19 Corporate
Responsibility
Education – LANXESS invests in the future and promotes

young talents around the world
Education – Our most important resource
 Demand for highly trained skilled workers increasing in  LANXESS wants young people to recognize the
contrast to decreasing proportion of young people in fascination of natural sciences and technology at an
population. Even today there is a lack of skilled early age
workers, particularly in the field of natural sciences  LANXESS invests in education in expertise on
 Qualified young employees as basic prerequisite for national and international level, e.g. Education Initiative
the sustained success of a company anywhere in the Germany, sponsoring of various education initiatives in
world Argentina
 LANXESS acknowledges its responsibility with local
education initiatives at its operating locations

Business Segments
– Performance Polymers
Business Segments

27 Butyl Rubber Intermediates Chemicals
31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Agenda

Business Segments
- Performance Polymers
- Advanced Intermediates
- Performance Chemicals
3. Financials
Performance Polymers: leading market positions with strong

and diversified portfolio
Performance Polymers
Butyl Rubber Performance Butadiene Rubbers Technical Rubber Products Semi-Crystalline Products
One of the world’s One of the leading Offers five types of high- Provides high-tech plastics
leading manufacturers of manufacturers of synthetic performance technical rubber for a broad variety of
high-quality butyl and rubbers (PBR, E-SBR and products for a wide range of customer industries
halobutyl rubbers which are S-SBR) which are used for applications: seals, hoses, (automotive, electronics, etc.)
impermeable to gas and manufacturing modern, fuel- profiles, cable sheathing, and is committed to the
moisture for tire and rubber efficient tires and many other special films and adhesives development of products and
industries products (e.g. footwear) new applications
LANXESS Fact Book – Performance Polymers

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Performance Polymers: one strong pillar of LANXESS

businesses
~55% of Group sales* Sales 2004 – 2010 EBITDA** (margin) 2004 – 2010
Business Segments
[ m] [ m] [%]
ance
Performance 17.0%
LXS others
LXS 600
15.5%
ers
Polymers 3,500 14.0% 15.0%
550 13.2%
12.6%
3,000 11.8% 13.0%
450
11.0%
2,500
350 10.5%
9.0%
2,000
250 8.2% 7.0%
1,500
150 5.0%
2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010
~55% of Group EBITDA pre* Sales by BU 2010 Capex*** 2004 – 2010

[ m]
ance
Performance
Polymers
ers LXS
LXS others CP
SCP BT
BTR 330000
360
300
22 4400
240
118800
180
112200
120
TRP 66
6000
PBR
00
0
2004 2005 2006 2007 2008 2009 2010
*operating segments; **pre exceptionals; ***net of finance lease

Serving global markets with world-class manufacturing base
Hamm-Uentrop, GE
Antwerp, BE Dormagen, GE
Marl, GE
Zwijndrecht, BE Krefeld-Uerdingen, GE
Sarnia, CA Leverkusen, GE
Port Jérôme,
FR
La Wantzenau, FR
Orange, US
Wuxi, CN
Jhagadia, IN * *
Nantong, CN
Cabo de Santo
Agostinho, BR
Singapore *
Duque de Caxias, BR
Triunfo, BR
Butyl Rubber Performance Butadiene Rubbers Technical Rubber Products Semi-Crystalline Products
*in construction

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Performance Polymers: globally No. 1-3 in synthetic rubber

and polyamide
 Mobility, growing population in Asia
Megatrends:
Business Segments
 High-performance tires, tire labeling

mobility and
urbanization  Vehicle weight reduction
 Growing requirements for high-quality medical packaging
 Global technology leader in synthetic rubber and polyamide

Globally competitive
 Strong global production footprint
position
 Excellent track record of price pass-through
 Premium-quality products across entire portfolio

Market orientation  Customer proximity: moving with customers to Asia
 Major end uses: tire and automotive industries

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Agenda
Business Segments
Butyl Rubber
Performance Butadiene Rubbers
Technical Rubber Products
Semi-Crystalline Products
3. Financials
Butyl Rubber: a market leader in synthetic rubber
Butyl Rubber – facts End uses

4%
84% 76
76%
Overview
5% 11%
 Provides butyl rubber which is a high-quality rubber 2008
2008 2010e
2010e
impermeable to gas and moisture with high 4% %
4%
chemical resistance and excellent mechanical 7%
7% 9%
9%
properties
 Wide applications in tire and non-tire markets Tire Pharma Gum Others
(high-tech pharmaceutical sealants, chewing gum) based on BU sales
Global demand 2010e

Supporting growth trends Am
Americas 21%
22%
EMEA 22%
 Mobility, growing middle-class in emerging
countries
 Increasing global trend for radial truck and bus
tires in emerging countries
 Growing requirements for high-quality medical As
Asia-Pacific 57%
packaging
LANXESS estimates
LANXESS Fact Book – Performance Polymers: Butyl Rubber

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
LANXESS provides regular and halogenated butyl rubber

Products Applications
Business Segments
Products
 Regular butyl rubber (Butyl)
 Halobutyl rubber
(Chlorobutyl, Bromobutyl)
The use of halobutyl rubber in innerliners made modern tires

possible
Tread  influences grip, fuel economy and noise

Undertread  joins the tread to steel belt and carcass
Upper steel belt  influences driving features and shape
Sidewall  protects carcass from damage
Lower steel belt  influences the driving features and shape
Carcass  gives support and shape
Innerliner  replaces the tube
Steel wires  keeps the tire safely attached to wheel rim
Made of BU BTR rubber

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
New plant with best-in-class technology
 Favorable technology due to implementation of streamlined processes
Business Segments
Protect and improve
 Lowering the plant's overall energy consumption utilizing optimized leadership position
equipment and state-of-the-art exhaust gas treatment systems
 Developing the next generation of butyl technology

Develop
 Breakthrough resulting in an entirely new production process with highly breakthrough
efficient resource utilization
Raw materials Process Product
Regular Butyl Halobutyl

Co-Monomers: Rubber Rubber
Isobutene Polymerization Halogenation
Isoprene + Chlorine or
Bromine
Continuous investments to profit from growing demand
Expansion of Expansion of Further expansion of Debottlenecking Start up of new world-

Antwerp site by Sarnia site by Sarnia site by 10% Antwerp by 10% scale production
10% completed 40% completed completed will be completed in Singapore
2006 2007 2008 2009 2010 2011 2012 2013
Timeline new plant in Singapore Engineering

Groundbreaking
Construction
Soil preparation
Infrastructure
Steel construction
Beginning of pipeline installation
Pipeline installation
Technology installation
Testing
Start of production

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Butyl Rubber: growing markets with huge demand, especially

in Asia-Pacific
Supply / demand for butyl rubber
Market environment
Business Segments
Tight market
2010-2013
Total global demand (2010e)
 ~€2.2 bn
Market development (2011-2015)
 Overall CAGR: 3-4%
2000 2004 2008 2013 2016 2020
- Asia-Pacific: ~5% Global nameplate capacity Production @ 95% capacity utilization Demand
- EMEA: ~2% source: CMAI, SRI, LANXESS estimates 2010
- Americas: ~2.5% LANXESS capacities

Main competitors  ~400kt/y (including all announced
investments)
 ExxonMobil Chemicals
LANXESS production sites
 Nizhnekamskneftekhim
 Zwijndrecht, Belgium
 Sibur (Togliattikauchuk)
 Sarnia, Canada
 Sinopec (Yanhua)  Singapore (2013)
Butyl Rubber: a leading market and technology position as

well as strong customer relationships
 Strengths / opportunities Weaknesses / challenges !

 Leading producer of butyl rubber  Change of air-retention-technology is a
 Leading technology in halogenated butyl potential threat
rubber
 Cost efficiency due to world-scale plants  Increasing Asian and Russian competition
 Continuously investing in the future, e.g.  Dependency on tire business / transportation
Antwerp expansion, Singapore plant
activities
 Strong customer relationship based on
strategic collaborations with top
manufacturers to meet specific customer
needs
 Leverage a leading market position in overall
market for butyl rubber
 Investing in renewable raw material sources

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Agenda
Business Segments
Butyl Rubber
3. Financials
Performance Butadiene Rubbers: leading market position
Performance Butadiene Rubbers – facts End uses

Plas
Plastics 16%
Overview Technical
rubber* 7%
 The world’s leading manufacturer of %
Tire 71%
Lifestyle &
performance polymers leisure 6%
- polybutadiene rubber (PBR)
- styrene-butadiene-rubber (solution and
based on BU sales 2009
emulsion, S-SBR and E-SBR)
Global demand 2010e
Supporting growth trends
Am
Americas 23%
 Mobility %
EMEA 25%
- tire labeling
- growth in retreading
- energy efficient tires, e-mobility
As
Asia-Pacific 52%
 Population growth, urbanization
LANXESS estimates
*e.g. industrial and mining
LANXESS Fact Book – Performance Polymers: Performance Butadiene Rubbers

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Performance Butadiene Rubbers offers top products meeting

today's and tomorrow’s requirements
Business Segments
Products
 PBR: polybutadiene rubber (Buna™ CB)
 S-SBR: solution styrene-butadiene rubber
(Buna™ VSL, Buna™ BL)
 E-SBR: emulsion styrene-butadiene rubber
(Buna™ SE)
Performance Butadiene Rubbers shapes performance tires
Tread  influences grip, fuel economy and noise

Undertread  joins the tread to steel belt and carcass
Upper steel belt  influences driving features and shape

Sidewall  protects carcass from damage
Lower steel belt  influences the driving features and shape
Carcass  gives support and shape
Innerliner  replaces the tube
Steel wires  keeps the tire safely attached to wheel rim
Made of BU PBR rubber

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Offers a complete range of polybutadiene and styrene

butadiene rubbers, focusing on performance grades
Production process
Business Segments
Polybutadiene rubber
Butadiene Solution
(key raw material) polymerization CB
Solution styrene
Butadiene & styrene Solution butadiene rubber (S-SBR)
(key raw material) polymerization
VSL + BL
Emulsion styrene
Butadiene & styrene Emulsion butadiene rubber (E-SBR)
(key raw material) polymerization
SE
PBR: growing markets with huge demand, especially in the

Asia-Pacific region in the performance segment
Market environment Supply / demand for PBR

 ~€11 bn
 Performance applications*: ~10%
2008 2010 2012 2014 2016
 Overall CAGR: 3-4% Global nameplate capacity Production @ 90-95% capacity utilization Demand
Source: LANXESS estimates based on CMAI, SRI, LMC
- Asia-Pacific: ~5%
- EMEA: ~2% LANXESS capacities
- Americas: ~2%  >800kt/y
Main competitors** LANXESS production sites
 Goodyear  Polimeri  Styron  Cabo, Brazil  Port Jérôme, France
 KKPC  Sibur  Caxias, Brazil  Dormagen, Germany
 NKNK  Sinopec  Triunfo, Brazil  Orange, USA
*markets for SSBR and Nd-PBR; **merchant market


31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
PBR: broad and innovative product portfolio combined with

excellent reputation and prospects
 !
Strengths / opportunities Weaknesses / challenges

Business Segments
 Broad and innovative product portfolio offered to  Dependency on tire business / transportation
both tire manufacturers and rubber consuming
activities
industries
 Strategic focus on high-performance products such  Continuously meeting growing global demand for
as Nd-PBR and S-SBR our performance products
 Product portfolio ideally suited to satisfy the
growing needs for performance products in APAC  Currently no manufacturing facility in APAC
 Reputation with top customers for reliable  Manage raw material price volatility for butadiene
performance and delivery
 World-scale plants in EMEA, LATAM and NAFTA
with modern, cost efficient production
 Strategic raw material (butadiene) is secured
structurally and track record in price pass-through

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Agenda
Business Segments
Butyl Rubber
3. Financials
Technical Rubber Products: broad spectrum of products and

applications
Technical Rubber Products – facts Construction 4% 4% End uses
5%
Plastics 5%
Overview Electro/ Automotive
electronics 6% 38%
 Offers a broad range of specialty elastomers Footwear
for the rubber processing industry 13%
 Used in automotive, engineering, construction, cal
Mechanical
electronics, oil exploration and aviation 7%
engineering 17% Othe
Others 17%
industries
Global demand 2010e
%
EMEA 32% AAmericas 28%
 Mobility
 Urbanization
 Growing population in emerging countries
As
Asia-Pacific 40%
LANXESS estimates
LANXESS Fact Book – Performance Polymers: Technical Rubber Products

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Technical Rubber Products: extensive portfolio of synthetic

rubbers
Business Segments
Products (by share)

 NBR: nitrile-butadiene rubber (Krynac®, Perbunan®)
 EPDM: ethylene-propylene diene rubber (Buna™ EP)
 CR: chloroprene rubber (Baypren®)
 HNBR: hydrogenated nitrile-butadiene rubber
(Therban®)
 EVM: ethylene-vinyl acetate rubber (Levapren®,
Levamelt®)
Nanoprene® – New product for several industrial applications
Think big – Add nano Nanoprene®
 The use of Nanoprene® improves the

material properties of elastomer and
thermoplastic materials
 Different Nanoprene® grades can be used
to satisfy different requirements for various
tire components (side wall, carcass, tread,
etc.)
 Nanoprene® consists of spherical particles
with a diameter in the range of 50nm
 Based on the monomers styrene and
butadiene
Diameter: ~50nm

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
A leading supplier of specialty elastomers for the rubber

industry
Production process
Business Segments
Nitrile-butadiene Hydrogenated nitrile-
Butadiene rubber (NBR) butadiene rubber (HNBR)
Polymerization Hydrogenation
& acrylonitrile
(Poly-) Chloroprene
Butadiene Chloroprene rubber (CR)
Polymerization Chlorination
& chlorine monomer
Ethylene Ethylene-propylene
diene rubber (EPDM)
& propylene Polymerization
& diene monomer
Ethylene-vinyl acetate
Ethylene rubber (EVM)
Polymerization
& vinylacetate
Technical Rubber Products: leading market positions, state-

of-the-art technology and world-scale plants
Market environment Supply / demand for NBR rubber in China

 €4.0 bn
 Overall CAGR: 3-4% 2008 2009 2010 2011 2012 2013 2014 2015
- Asia-Pacific: ~5% Domestic capacity* LXS/TRSC capacity* NBR demand in China

source: LANXESS estimates; *nameplate
- EMEA: ~2%
- Americas: ~2.5% LANXESS capacities
Main competitors  >300kt/y
 Denka  JSR
 Nantong, China  Leverkusen,
 DSM  Kumho (JV with TSRC) Germany
 DuPont  Polimeri  La Wantzenau, France  Marl, Germany
 Exxon Mobil  Zeon  Dormagen, Germany  Orange, USA

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Technical Rubber Products: strong innovation capabilities

combined with world-scale plants to enable future growth
 !

Business Segments
 World-scale plants with state-of-the-art  Consistent pass-through of raw material price

production facilities and processes increases
( attractive cost position)
 Broad and deep product portfolio with strong  Accompany market consolidation and
brand marketing and strong innovation migration to Asia
capability
 Substitution by alternative technologies in
 Strong position and high innovation potential
in premium products EVM and HNBR end applications (gear belt vs. linkage)
 EPDM-market fundamentals improving

 NBR: broadest product portfolio incl. taylor-
made grades
 Broad customer basis

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Agenda
Business Segments
Butyl Rubber
3. Financials
Semi-Crystalline Products: high-value added product portfolio

and upstream-integration in strategic raw materials
Semi-Crystalline Products – facts End uses Sport/
Construction
4%
Others
Others leisure 5%
leisure 5%
Auto
Automotive ers
Others
20%
20%
32%
32% 8%
Overview
 SCP provides Chemistry
%
4%
y Packaging
10%
- a wide range of PA* and PBT** based high-tech Packaging Total SCP
Total SCP High-tech plastics
High-tech plastics
%
6%
plastics Sport//
%
leisure 7%
- a global production and R&D network for high-tech E&E E&E
uction
Construction 13%
13% 2%
22%
plastics 9%
il 9%
Textile 9%
Automoti
Automotive
51%
- a cost leadership position in strategic raw materials
caprolactam, glass fibers and adipic acid due to
Global demand 2010e
world-scale production assets in Europe
Supporting growth trends A
Americas 25%
 Fuel efficiency and vehicle weight reduction: current %
EMEA 35%
content of high-tech plastics per cars ~14kg – growth
of high-tech plastics replacing metal estimated at 4%
p.a. between 2010 and 2020
 Mobility, growing car demand, especially in BRIC
leading to annual car assembly growth of >3% As
Asia-Pacific 40%
LANXESS estimates: PA and PBT high-tech plastics by volume
*polyamide; **polybutylene terephthalate
LANXESS Fact Book – Performance Polymers: Semi-Crystalline Products

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Strong brands in high-tech plastics: Durethan® and Pocan®

Business Segments
Products
 Durethan® A – based on polyamide 6.6
 Durethan® B – based on polyamide 6
 POCAN® – based on polybutylene terephthalate (PBT)
 Available types for all three: non-reinforced, glass fiber
reinforced, glass-bead and mineral-filled, glass fiber
reinforced / mineral-filled, flame retardant, and polymer
and elastomer-modified grades
 Glass fibers
 Plastics intermediates caprolactam and adipic acid
 Polyamide-based monofilament products
Semi-Crystalline products’ main focus on polyamide chain
Manufacturing chain
Upstream-integration into intermediates for high-tech plastics

with focus on captive consumption
Glass fibers &

other additives
Compounding Application
Cyclohexane KA-Oil (1) Caprolactam Polymerization development
High-tech & branding
PA 6
plastics
Product
Merchant development
market

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Strength in design of structural components makes SCP a

premium development partner to the automotive industry
New generation of hybrid technology PA composite inserts
Business Segments
 Hybrid technology with combination of injection molded
Durethan and polyamide composite inserts
- Low weight: weight reduction >10% over aluminum
- Higher stiffness
- Better impact performance
- Possibility of complex designs
- No corrosion and easier recycling
 Application leader: e.g. hoses and tubes for turbo charged
engines, body components, oil pans, weight reduction of
highest importance for e-mobility
 Material leader: e.g. flame retardant products in electrical
engines, ECO grades for sustainable material solution
Semi-Crystalline Products – Strong European

14 kg/car
market position
with leverage effects in Asia
Market environment high-tech plastics Demand growth for high-tech plastics*
a.
p.
Total global demand (2010e) +
7%
 ~€7 bn
(PA + PBT high-tech plastics)
Market development* (2011 - 2015) 14 kg/car
 Overall CAGR: ~6% 2010

Car production [cars] Usage [kg/car]
2020
- Americas: ~5%
- EMEA: ~3% LANXESS production sites
- APAC: ~9%  Antwerp, Belgium
Main established global competitors  Wuxi, China
 BASF  Krefeld-Uerdingen, Germany
 DSM  Dormagen, Germany
 DuPont  Hamm-Uentrop (JV), Germany
 Rhodia  Jhagadia, India (under construction)
*source: JD Powers 08/2010, LANXESS own estimates

31 Performance
Butadiene Rubbers
35 Technical Rubber
Products
39 Semi-Crystalline
Products
Semi-Crystalline Products: upstream-integration and focused

investments enable attractive profitability and growth
 !

Business Segments
High-tech plastics High-tech plastics

 Leading position in EMEA and further business  Repositioning of high-tech plastics business in Americas
strengthening in Asia  Short-term volatilities in demand, raw material prices,
 Durethan® and Pocan ® as strong brands in high-tech energy costs and exchange rates lead to major shifts in
plastics global supply and demand balances and short-term of
 Broad product portfolio with ideal price performance ratio balances pricing / margins
 Expertise and successful track record in application  Availability of special chemicals within high-tech plastics
development and customized engineering to support long- recipes
term customer relationships
 Customized product development and expertise in com-
pounding technology allow to maximize customer benefit
 Lean asset investments with regional focus
Intermediates Intermediates
 World-scale upstream-integration into caprolactam, adipic  Manage global supply and demand in line with trade
acid and glass fibers barriers and subsidies
 Cost leadership within world-scale assets due to
economies of scale and logistical advantages

Business Segments
– Advanced Intermediates
Business Segments

Intermediates Chemicals
Intermediates
51 Saltigo
Agenda

3. Financials
Business Segments
Advanced Intermediates: Basic Chemicals and Saltigo, strong

and reliable partners for our customers
Advanced Intermediates
Advanced Industrial Intermediates Saltigo
One of the world’s leading suppliers A major supplier on the custom synthesis market,
of high-quality industrial chemicals (aromatics) providing state-of-the-art services
which are extremely important for to the agrochemicals, pharmaceuticals,
the manufacturing of a large number of and specialty chemicals industries.
chemical products, such as Saltigo is committed to support customers
agrochemicals, dyestuffs and coatings throughout the entire lifecycle of their products
LANXESS Fact Book – Advanced Intermediates

Intermediates
51 Saltigo
Advanced Intermediates: financials demonstrate business’

resilience
~20% of Group sales* Sales 2004 – 2010 EBITDA** (margin) 2004 – 2010
[ m] [ m] [%]
Advancedd LXS
LXS others 300 20.0%
tes
Intermediates 1,500
16.8%
250
15.3%
14.2% 14.5%14.2%13.9%
1,000 200 12.2% 14.0%
150
500 100 8.0%

2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010
~20% of Group EBITDA pre* Sales by BU 2010 Capex*** 2004 – 2010

[ m]
Advanced
80
ates
Intermediates LXS
LXS others SGO
60
40
AII C
Business Segments
20
2004 2005 2006 2007 2008 2009 2010
*operating segments; **pre exceptionals; ***net of projects financed by customers

Advanced Intermediates relies on manufacturing base with

main focus in Europe
Brunsbüttel, GE
Krefeld-Uerdingen, GE
Dormagen, GE
Redmond, US
Leverkusen, GE
Baytown, US
Liyang, CN
Nagda, IN
Basic Chemicals
Advanced Saltigo
Industrial Intermediates Saltigo

Intermediates
51 Saltigo
Advanced Intermediates: in Europe number one to two in

custom synthesis and basic chemicals
Megatrends: Increasing grain demand and land scarcity

population growth & Need of farmers to raise yields
urbanization Food and feed demand growth by ~50% by 2030*
Unique, integrated manufacturing process provides BU AII

Globally competitive clear competitive advantage
position Technology leadership and strong customer relationships based
on established track record
Internal engineering for rapid capacity expansions

Process orientation Integrated production facilities combined with competence in
challenging chemistries
Business Segments
*source: Monsanto, July 2010


Intermediates
51 Saltigo
Agenda

Advanced Industrial Intermediates
Saltigo
3. Financials
Business Segments
Advanced Industrial Intermediates: leading global positions in
diversified end user applications
AII – facts End uses
Others incl.
O
Overview Construction 7%% p
polymers 43%
Offers a broad range of mostly aromatic
compounds which are important for large Automotive 11%%
number of chemical products, such as
Paints & A
Agro 25%
agrochemicals, dyestuffs and coatings
15%
coatings 15%
Supporting growth trends based on BU sales 2009
Stable market due to high diversity of end Global demand 2010e

uses
A
Americas 23%
World demand growth inline with GDP %
EMEA 38%
Strong growth in Asia-Pacific, especially in
China and India
Stable demand in consolidated European
and American markets As
Asia-Pacific 39%
LANXESS estimates
LANXESS Fact Book – Advanced Intermediates: Advanced Industrial Intermediates

Intermediates
51 Saltigo
Strengthening our business portfolio at an early stage

of the value chain
Segmentation of the chemical industry Business line products*
Chloro-
Chlorobenzenes
Active toluenes Nitro-
&
Pharma & toluenes
ingredients derivatives
cresols
Agro
Specialty
chemicals Benzyl
Polyols/
Specialties products
Polymers &
oxidation
products
amines
Intermediates Inorganic
acids
Bulk Mass plastics
chemicals LANXESS market share
Petrochemicals
>30% >25% >20%
Business Segments
Feedstock, gas and oil
*diameter represents relative market size
LANXESS
LANXESS Fact
Fact Book Book – Advanced
– Advanced Intermediates:
Intermediates: AdvancedBasic Chemicals
Industrial Intermediates
Advanced Industrial Intermediates offers a broad product

range for use in numerous end user industries
Products (selection)
 Chlorobenzenes and derivatives
 Chlorotoluenes and derivatives DIPHYL® Vulkanox®
 Nitrotoluenes and derivatives
 Polyols / oxidation products
 Inorganic acids
 Benzyl products / amines

Intermediates
51 Saltigo
Unique, integrated manufacturing processes provides clear

competitive advantage
Unique manufacturing process
Chloro-
Hydrogenation
Chlorination
benzene
Hydrolysis
Alkylation
Benzene & Dichloro-
Cresols Thymol D/L menthol
toluene benzenes
Chloro-
toluenes
captive
consumption
Chloro-
lation
Alky-
Hydrogenation
Nitrochloro- Chloro- Methylethyl-
benzene aniline
Nitration
benzenes anilines
Dichloro-
Nitrodichloro- Dichloro-
benzenes 3.4-Dichloro-
Phosge-
benzenes anilines
nation
Chloro- phenyl-isocyanate
Nitrotoluenes Toluidines Arom.
toluenes
Isocyanates
 Products are sold to open market or captively used
Business Segments
 Output of individual products can be modified according to market needs
Advanced Industrial Intermediates: market growing along

with that of GDP
Market environment Market share**

 Benzyl products: >30%
 Inorganic acids: >30%
 €3.3 bn
 Nitrotoluenes: >30%
 Polyols: >25%
 Overall* CAGR: ~3%
- Asia-Pacific: ~5%  Chlorobenzenes, -toluenes: >20%
- EMEA: ~2%
- Americas: ~3% LANXESS production sites
Main competitors  Liyang, China
 Aarti  Ihara  Brunsbüttel, Dormagen, Krefeld-Uerdingen,
 BASF  Jiangsu Yangnong Leverkusen, Germany
 DDF  Merisol  Nagda, India
 DSM  Perstorp
 Baytown, USA
 Huaihe  Tessenderlo
source: LANXESS estimates; *weighted average; **relevant market

Intermediates
51 Saltigo
AII will take advantage of strong European base to further

generate value globally

 The BU maintains strong positions in all its  In some segments newly built facilities in
product lines Asia lead to overcapacity resulting in
increasing competitive pressure
 The unique “Aromatenverbund” system
 Migration of upstream industries to Asia
enables optimization of capacity utilization, (textiles, dyestuffs, fluoro chemicals,
cost of production and product mix ensuring pigments, etc.)
a solid market position
 Fragmentation in Asian customer markets
 Competitive technologies and world-scale creates complexity
production facilities provide cost advantage  Limited production assets in Asia
 High capacity utilization with well balanced  REACH and other regulations will lead to
cost increases for European producers
isomer management
Business Segments
43-54_Kapitel_03-Lanxess-Fact-Book.indd 48 13.10.11 10:46

Intermediates
51 Saltigo
Agenda

Advanced Industrial Intermediates
Saltigo
3. Financials
Business Segments
Saltigo is serving the market with high-end custom
manufacturing of fine chemicals
Saltigo – facts End uses
10%
Specialties 10%
Overview
 Important player in fine chemicals Agro 65%
Pharma 25%
focused on
- agrochemicals custom manufacturing
- pharmaceutical custom manufacturing
Global demand 2010e

Supporting growth trends Ame
Americas 14%
 Increasing crop demand based on growing A
Asia-Pacific 5%
world population
EMEA 81%
 Need of farmers to raise yields
 Increasing outsourcing trends especially in
the life science industry
LANXESS estimates
LANXESS Fact Book – Advanced Intermediates: Saltigo

Intermediates
51 Saltigo
Saltigo offers intermediates and active ingredients mainly for

agrochemicals and pharmaceuticals
Products
 Custom manufactured active ingredients
and intermediates for agrochemicals and
pharmaceuticals
 Active ingredient for insect repellent
 Broad portfolio of high-quality multi-

customer fine chemicals
 Full service provider for route selection, lab
scale development, pilotation,
manufacturing analytical services and
registrations
Business Segments
Saltigo: focused on custom manufacturing of fine chemicals
Custom manufacturing
Customer value chain
Process
Research &
Development & Production Marketing & Sales
Development
Piloting
Custom manufacturing
Chemical Multi-step
Products
intermediates reaction

Intermediates
51 Saltigo
Saltigo is one of the leading players in an interesting growing

market mainly in agrochemicals
Market environment Agrochemicals – key to farm efficiency
Total global demand (2010e) [in %]

Farm efficiency
300
 Agro outsourcing €2.5 bn 250

2009
200
 Pharma outsourcing €14.5 bn Agrochemicals
150
Market development (2011-2015) 100

Farm mechanization
50
 Overall CAGR: ~5% 0 Better crop varieties
1961 1971 1981 1991 2001 2011 2021
Main competitors Yield Acreage
source : FAO, LANXESS prognosis

 Albemarle
 DSM LANXESS / Saltigo production sites
 Dormagen, Germany
 Evonik
 Leverkusen, Germany
 Lonza
 Redmond, USA
Business Segments
 WeylChem
source: LANXESS estimates
Saltigo is taking advantage of its expertise in complex

processes and challenging chemistry

 Saltigo is among the top global players in custom  Ongoing market consolidation
manufacturing
 State-of-the-art technology and services to the  Cost pressure has to be compensated by
pharmaceuticals, agrochemicals and specialty continuous improvement measures
chemicals industries
 Competition from Asia, especially for
 Technology leadership in high-end chemistry
early intermediates
 Expertise in the field of complex chemistry and fast
“ramp-up” capabilities  Increased demand for a global production network
 Integrated production facilities combined with
competence in challenging chemistries
 Successfully established brand and focused
market approach
 Strong customer relationships based on
established track record

Business Segments
– Performance Chemicals
Business Segments

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Agenda

3. Financials
Performance Chemicals: production of application-focused

chemicals for a wide range of industries (1/2)
Performance Chemicals
Material Protection Products Inorganic Pigments Functional Chemicals Leather

Business Segments
Wide range of biocide A leading global supplier of Offers plastics additives, One of the few suppliers to
active ingredients and inorganic pigments for phosphorus and specialty the leather industry to offer
preservatives for beverage products such as concrete, chemicals, organic and all products needed for
stabilization, wood roof tiles, paints and dyes and inorganic colorants leather processing including
protection / antifouling special pigments for toners Meets the needs of tanning agents,
products, industrial and other applications customers in a wide range of preservatives, finishing
preservation and disinfection industrial sectors auxiliaries and dye products
LANXESS Fact Book – Performance Chemicals

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Performance Chemicals: production of application-focused

chemicals for a wide range of industries (2/2)
Performance Chemicals
Rhein Chemie Rubber Chemicals Ion Exchange Resins
Provides as a Full portfolio of One of the leading producers

global supplier rubber chemicals for of ion exchange resins and
technical services and the tire and technical technical applications for
additives for various rubber industry including the treatment of liquids.
sectors of the rubber, antidegradants, Products are becoming
lubricant and accelerators and increasingly important, e.g.
plastics industry specialties in the treatment of drinking
water
Performance Chemicals: specialty chemicals for niche

markets
~25% of Group Sales* Sales 2004 – 2010 EBITDA** (margin) 2004 – 2010
[ m] [ m] [%]
ance
Performance 300
LXS
LXS oothers 2,500 14.5% 14.2% 16.0%
cals
Chemicals
Business Segments
13.2%
2,250 12.5% 14.0%
2,000 250 11.0% 12.0%
9.6%
1,750 11.9%
10.0%
1,500 200
1,250 8.0%
500 150 6.0%

2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010
~25% of Group EBITDA pre* Sales by BU 2010 Capex 2004 – 2010

MPP [ m]
ance
Performance LXS
LXS o
others IPG 115
als
Chemicals 105
F
FCC
95
85
ION 75
65
L
LEA
55
UC
RUC 45
RCH 2004 2005 2006 2007 2008 2009 2010
*operating segments; **pre exceptionals


Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Performance Chemicals has a world-wide manufacturing base
Brunsbüttel, GE
Antwerp, BE Krefeld-Uerdingen, GE
Branston, GB Dormagen, GE Nizhny Novgorod, RU *
Leverkusen, GE
Chardon, US
Bitterfeld, GE Toyohashi, JP
Burgettstown, US Mannheim, GE
Bushy Park, US
Qingdao, CN
Vilassar de Mar, ES Filago, IT Wuxi, CN
Shanghai, CN
Jhagadia, IN **
Madurai, IN
Porto Feliz, BR
Rustenburg, ZA
Newcastle, ZA
Zárate, AR Isithebe, ZA Sydney, AU
Merebank, ZA
Material Protection Products Inorganic Pigments Functional Chemicals Leather Rhein Chemie Rubber Chemicals Ion Exchange Resins
*in construcion; **start of production in Q4 2010

Performance Chemicals: number one to number four in niche

positions
Megatrends:  Scarcity of purified water

water and  Growing middle class in APAC

Business Segments
urbanization  Increasing demand for coloring in emerging countries
 Global leadership positions in specialties / niches

Globally competitive
 Outstanding product quality, high-innovative capability
position
 Global sales and service network
 Activities in the field of process and functional chemicals

Application-
oriented  Diversified end uses like water treatment, leather, construction
industries and beverages

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Agenda

Material Protection Products
Inorganic Pigments
Functional Chemicals
Leather
Rhein Chemie
Rubber Chemicals
Ion Exchange Resins
3. Financials
Material Protection Products: customized solutions to

preserve materials
End uses
Material Protection Products – facts
15%
Construction 15%
Paints &
Business Segments
Overview coatings 30%
Industrial &
 Offers a wide portfolio of anti-microbial others 15%
products for disinfectants, food and
beverages, industrial preservation, wood
protection, paints and coatings, construction, Disinfection 15%
Bev
Beverages 25%
health and personal care based on BU sales 2009
 Supported by excellent global technical and Global demand 2010e

regulatory service
%
EMEA 28% A
Americas 38%
 Increase health awareness
 Biocides trend regulation: innovative
formulation technologies
4%
Asia-Pacific 34%
LANXESS estimates
LANXESS Fact Book – Performance Chemicals: Material Protection Products

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Material Protection Products offers products and problem

solutions for a wide area of applications
Products
 Components for preserve compounds,
disinfectants and wood protection products
 Technology for non-alcoholic soft drinks and wine
 Components for preserve compounds
Material Protection Products: a leading producer of active

ingredients and biocidal formulations
Value chain
Business Segments
Chemicals Regulatory & data package Biocidal formulations

= “Active ingredients”
o-phenylphenol
Preventol® O extra (OPP)
(OPP)
Purchase of registered actives
Solution or dispersion
Own manufacturing
ready to use for customer
Registration
Sourcing

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Material Protection Products: benefiting from increasing

demand and positive trends
Market environment
Growth  Growing importance of hygiene
trend
Total global demand 2010e health  Calorie-reduced / functional beverages
 Disinfection & Personal care: €1.3 bn
 Innovative formulation technologies
 Biocides: €2.3 bn Biocides
trend  “Green” actives
Market development (2011-2015) regulation
 Organic beverages
 Overall CAGR: ~3%
- disinfection: ~6%
- biocides: ~2%
 Wuxi, China
- beverage technology: ~3%
 Dormagen, Germany
Main competitors
 Arch  Krefeld-Uerdingen, Germany
 Dow  Madurai, India
 Thor
Material Protection Products’ strength driven by product

portfolio and expertise
Business Segments
 Broad and innovative portfolio with unique  Low cost Chinese / Indian competition in
properties and leading positions in attractive commodity-type biocidal actives
market segments
 Leading expertise in regulatory affairs and  Challenge to manage commoditizing wood
broad basis of biocidal registrations actives
 Challenge to improve upstream-integration
 Good cost structure
for selected actives
 Leading beverage technology solution
 Opportunity to participate in ongoing market
consolidation
 Opportunity to participate in growing demand
for hygiene products

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Agenda

Inorganic Pigments
Leather
Rhein Chemie
Rubber Chemicals
Ion Exchange Resins
3. Financials
Inorganic Pigments: market leader with double-digit market

share
Inorganic Pigments – facts End uses
16%
Others 16%
Overview
Business Segments
%
Plastics 6%
 BU Inorganic Pigments offers Construction
- high-quality iron oxide and chromium oxide 54%
pigments (e.g. for construction, coatings,
plastics) 4%
Coatings 24%
- iron oxides and chromium oxides for technical
applications
Global demand 2010e
 Increasing demand for coloring in emerging AAmericas 30%
countries (e.g. in Asia-Pacific and LATAM) EMEA 35%
 Sustainability as a competitive edge
 Consolidation among Chinese iron oxide producers
 General global trend towards higher quality
products in all application fields As
Asia-Pacific 35%
LANXESS estimates based on SRI
LANXESS Fact Book – Performance Chemicals: Inorganic Pigments

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Growing awareness for sustainability worldwide will trigger

implementation of environmental standards
Sustainability in manufacturing Sustainability as growth driver for IPG
Jinshan, China  IPG as the first global mover in setting and
 State-of-the-art wastewater treatment plant implementing highest HSEQ standards in
production processes for iron and chrome oxides
 15% reduced emissions in 2009 by better energy
utilization and water management  Further global HESQ production process
Porto Feliz, Brazil developments are driven by IPG
 CO2 neutral production of energy by using  Implementation of HSEQ standards in emerging
bagasse, a residual of the sugar industry countries are driven by IPG
(Co-Generation plant)  LANXESS production sites in China and Brazil with
 Reduction of CO2 emissions by 44kt annually “German” standards
Krefeld-Uerdingen, Germany  IPG’s focus on HSEQ proving successful during
 Innovative process enables complete waste ongoing consolidation of competitive environment
water recycling to produce iron oxide pigments
 Focus on sustainability further increases
 Processed water of recovery unit needs no competitiveness
further cleaning, it is directly piped into the Rhine
Pigments for colorings and technical applications
Products
 Broad range of iron oxide and chromium Business Segments
oxide pigments:
Bayferrox®, COLORTHERM®, Bayoxide®,
BayScape®
 “Golden Standard” for iron oxide pigments

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Production process – Various technologies are applied to

produce a full range of colors
Sieving and Drying/ Blending/

Synthesis Packaging
washing calcination milling
Laux
process
Color
Thickening Drying
Precipitation adjustment
and and/or Packaging
process and
washing calcination
milling
Penniman
process
IPG is well prepared to accommodate future market

developments
Market environment Global demand for iron oxide, 2010-2016e
[kt]
1,200
1,000
Business Segments
Total global demand (2010e) 800
 ~€800 m 600
Market development (2011-2015) 400
200
 Overall CAGR: ~4% 0
2010 2011 2012 2013 2014 2015 2016
- Asia-Pacific: 5-6% APAC Americas EMEA
- EMEA: ~3%
Main competitors  Sydney, Australia  Vilassar de Mar, Spain
 Rockwood  Porto Feliz, Brazil  Branston, United
 Chinese Companies (e.g. Cathay Pigments,  Shanghai, China Kingdom
Yipin Pigments)  Krefeld-Uerdingen,  Burgettstown, USA
Germany
source: LANXESS estimates based on Cologne Strategy Group


Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
World-scale production capacities, global market access and

technical support are key competitive advantages of IPG

 State-of-the-art world-scale production  Increasing raw material and energy costs
capacities and superior product quality
 Broad product portfolio (in terms of color,  High share of total costs denominated in
supply forms and application coverage) EUR (most iron oxide producers have a USD
 Strong and well established brand name dominated cost structure)
(Bayferrox® synonymous for iron oxides in
general in many markets)
 Worldwide distribution network and local
blending units
 High sophisticated technical support
 Global adherence to high environmental
standards
Business Segments

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Agenda

Inorganic Pigments
Leather
Rhein Chemie
Rubber Chemicals
Ion Exchange Resins
3. Financials
Functional Chemicals: high-value added products meeting

strict environmental and regulatory requirements
Functional Chemicals – facts d uses
End uses
Construction P
Packaging and
Overview
Business Segments
30% t
toys 20%
 Major global manufacturer of organic Others 4%
phosphorous chemicals (flame retardants), Paints/ Electro/
polymer additives (plasticizers), organic coatings 5%% electronics 12%
colorants and water treatment chemicals Automotive 7%
Water 11% Agro 11%
Agro
 Providing specialty products with high value based on BU sales 2009
added
Supporting growth trends  Leverkusen, Germany
 Regulatory trend towards halogen-free flame  Krefeld-Uerdingen, Germany
retardants and phthalate-free plasticizers
 Increasing demand for polymer processing,
office communication, water treatment and
conditioning
LANXESS Fact Book – Performance Chemicals: Functional Chemicals

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Functional Chemicals offers products for a variety of

applications in plastics and chemistry
 Flame retardants (DISFLAMOLL®, BAYFOMOX®,

LEVAGARD®)
 Plasticizers (MESAMOLL®, ADIMOLL®,
ULTRAMOLL®, UNIMOLL®, Triacetin)
 Blowing agents (GENITRON™)
 Organic colorants (BAYSCRIPT®, MACROLEX®,
BAYPLAST®, SOLFORT®, LEVANYL®, LEVANOX®,
BAYFAST®)
 Synthesis chemicals: phosphor intermediates,
phosphor chlorides
 Water treatment chemicals (BAYHIBIT®,
BAYPURE®)
Functional Chemicals operates one of the largest integrated

production units for phosphorus chemicals
Production chain for phosphorus chemicals
Flame retardants Business Segments
Phosphor Phosphorus trichloride
Production Phosphorus specialties
Oxygen
chain Phosphorus oxychloride
Chlorine Water treatment agents
P-Chlorides Phosphonates - scale inhi- Alkyl phosphates - flame Aryl phosphates -

for agrochemicals bitors for industrial cleaners retardants for polyurethanes flame retardants for PVC
Application
examples

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Functional Chemicals offers products responding to growing

environmental and regulatory requirements
Trends for plastic additives and flame retardants
Trend to phthalate-free plasticizers and FDA approved products

 Growing demand for phthalate-free plasticizers for a wide range of polymers
 Food:
- Food and Drug Administration (FDA) approval for Mesamoll® II
- positive rating from EFSA (European Food Safety Authority) was granted for food contact applications
(Official EU approval for use in food packaging expected for fall 2010)
- Macrolex® dyes satisfy high purity and safety regulations for food packaging and food contact applications
including FDA approval
Trend to phosphorus-based flame retardants
 Ongoing EU and NORAM environmental regulations, increasing OEM and consumer preference ban several
brominated and favor mainly phosphorus-based flame retardants
 LANXESS is dedicated to environmentally friendly safer phosphorus-based flame retardants
Trend to energy efficient buildings
 Levagard DMPP satisfies new EU fire protection standards for composite isolation elements made of rigid
polyurethane foam
The phosphorus-based flame retardants market is growing

faster than GDP
P-based flame retardants market, 2010-2015e
Market environment flame retardants
Business Segments

 $750 m
 Overall CAGR: ~5% 2010 2011 2012 2013 2014 2015
- Asia-Pacific: ~5% USA Europe APAC
source: SRI
- Europe: ~3%
Global demand 2010e
- North America: ~4%
Main competitors %
EMEA 39% AAmericas 36%
 Albemarle  Wansheng
 Chemtura  Yoke
 Daihachi
 ICL Asi
Asia-Pacific 25%
LANXESS estimates for flame retardants

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Functional Chemicals is a competitive regulatory driven

business

 One of the largest and most competitive integrated  Enhancement of competitiveness to face
production facilities for phosphorus chemicals increasing price pressure in commodity segments
 Strong market position in phosphorus based flame especially from Asian competitors
retardants, bonding agents and other ecologically
friendly products such as specialty plasticizers and  Efficiently managed high volatility of raw material
solvent dyes for plastics prices
 Established solution provider especially for  Change in the competitive environment due to
products meeting new regulatory requirements further consolidation
 Global strong existing customer relationships in
key markets
 Environmental awards and extensive patent
protection
Business Segments

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Agenda

Inorganic Pigments
Leather
Rhein Chemie
Rubber Chemicals
Ion Exchange Resins
3. Financials
Leather benefits from a broad product portfolio and upstream-

integration into chrome ore
Leather – facts End uses
Automotive e9%
9%
Others 10%%
Business Segments
Overview
 Broad portfolio of specialty products ranging Shoe 52%
for the entire leather manufacturing process Furniture 14%
 Upstream-integration into chrome ore for
leather chemicals and metal production 15%
Garment 15%
 Global strategic alliance with Dow to based on BU sales 2009
complete LANXESS product range Global demand 2010e

Americas 20%
 Decreasing hide quality and shift to higher %
EMEA 30%
environmental standards increases demand
for innovative leather chemicals
 Steadily growing meat consumption
 Ongoing market consolidation As
Asia-Pacific 50%
LANXESS estimates
LANXESS Fact Book – Performance Chemicals: Leather

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
LANXESS offers a full product portfolio for the leather

industry
 Beamhouse chemicals
 Binders
 Chrome tanning salts
 Colorants for wet end and finishing
 Fatliquor
 Finishing auxiliaries
 Patent leather chemicals
 Preservatives
 Retanning chemicals
Upstream-integration into chrome ore for usage in the leather

and other industries
LANXESS chrome ore value chain
Business Segments
Non-leather applications
 Plating
Chrome
 Construction
oxide  Others
pigments
Chromic
Sodium acid
Chrome dichromate
ore (SDC)
Chrome
tanning salts Leather
industry
Leather Chemicals (Tanning)

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
BU Leather offers a well balanced portfolio of leather

chemicals in an one-stop-shop
LANXESS leather chemicals process steps
Tanning Retanning Finishing

…to
from …through …and
finished
raw hide wet blue… crust…
leather
Process
step with
demand
for chemicals
LXS-LEA 1. Soaking
activities 2. Liming 7. Neutralisation 11. Finishing
3. Deliming 8. Retanning
4. Pickling 9. Dyeing
5. Chrome tanning 10. Softening
6. Preservation
Leather markets grow slowly but steadily in line with meat

consumption
Market environment Meat consumption [m t]
~74
~67 ~71
~62 RoW
Total global leather chemicals demand
Business Segments
LatAm
(2010e) North America
 €2.2 bn EMEA
APAC
Beef consumption growth (2011-2015)
2005 2010e 2015e 2018e
 Overall CAGR: ~1%
source: OECD-FAO
- Asia-Pacific: ~2%
- EMEA: ~0.5% LANXESS production sites
- North America: ~1%  Zárate, Argentina  Filago, Italy
- South America: ~2%  Wuxi, China  Merebank, South Africa

Main competitors  Leverkusen, Germany  Newcastle, South Africa
 BASF  TFL  Madurai, India  Rustenburg, South Africa
 Clariant  Stahl
source: OECD-FAO

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Excellent positioning in a challenging market environment
 Market environment Weaknesses / challenges !

 Broad product portfolio offering full range of  Increasing competitive pressure due to
leather chemicals to the customer ongoing overcapacities in retanning and
 Strong market position in chrome tanning finishing chemicals
salts driven by upstream-integration into  Country risk due to production in
chrome ore geopolitically volatile countries
 Strong market position in faster growing  Innovation need due to prospective increase
Asian markets in eco trends
 Strong and established customer
relationships
 Well trained and experienced technical
support with excellent market acceptance
 Market geared towards consolidation
Business Segments

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Agenda

Inorganic Pigments
Leather
Rhein Chemie
Rubber Chemicals
Ion Exchange Resins
3. Financials
Rhein Chemie has a strong service and application expertise
Rhein Chemie – facts End uses

Automotive/
Construction 5%
% transportation
Business Segments
Overview
Machinery/ 39%
 Providing technical solutions, services and equipment 8%
additives for the rubber, polyurethane, Pulp &
plastics and lubricant oil industries paper 8%
O
Others 22%
Tires 18%
Supporting growth trends Global demand 2010e
 Global mobility trends
EMEA 27% A
Americas 33%
- high-performance tires
- bio-plastics
Asia
Asia-Pacific 40%
LANXESS estimates
LANXESS Fact Book – Performance Chemicals: Rhein Chemie

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Rhein Chemie offers a diverse product portfolio
Business Lines
Additives for the rubber industry Products
 Polymer-bound chemicals (RHENOGRAN®, POLYDISPERSION)
 Processing promoters (AKTIPLAST®, AFLUX®)
 Release agents (RHENODIV®) Oil additives
tives
 Vulcanization activators (RHENOFIT®) 20%
%
 Tire marking paint (RHENOMARK®) Additive
for
Additives for polyurethane and plastics rubber
 Hydrolysis protection (STABAXOL®) 60%
 Crosslinkers for various plastic systems (ADDOLINK®)
Lubricant oil additives Additive for polyurethane &
 Corrosion inhibitors (ADDITIN®) plastics 20%
 Sulfur carriers and anti-wear agents (ADDITIN®)
 Oil- and water-based metalworking fluids (ADDITIN®)
High-performance packages for industrial oils are the most

important products of the lubricant oil additive business
Application driven chemistry
Chemistry Applications Business Segments
Sulfur Carriers Hydraulics

ZnDTP Development and Turbines
marketing of high-
P-Ester Gears
performance additives
Sulfonates combining deep chemical Metal working
Esters knowledge and long-term Transportation
Polymers field experience Bearings
Anti-Oxidants Rust protection

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Rhein Chemie has a leading market position in its main

business segment
Market environment New production facility in Nizhny Novgorod,
Russia
Total global demand (2010e)  Industrial park Dzerzhinsk will
gain additional production capacity
 €2.3 bn
for Rhein Chemie’s main product
Market development (2011-2015) group polymer-bound chemicals
 Overall CAGR: ~3% and release agents in 2011
- Asia-Pacific: ~5%
- EMEA: ~2%
- Americas: ~2% LANXESS capacities
Main competitors  ~100kt/y
 Afton LANXESS production sites
 Antwerp, Belgium  Madurai, India
 Lubrizol
 Porto Feliz, Brazil  Toyohashi, Japan
 MLPC / Arkema Group  Qingdao, China  Nizhny Novgorod, RUS
 Struktol  Mannheim, Germany  Chardon, USA
Rhein Chemie has a strong service and application expertise

Business Segments
 Leading position in additive formulations  Consolidation in rubber and automotive

industry
 Well recognized image and strong brands
 Raw material price volatility and availability
 Cost pressure of the automotive industry
 Supplier of customized solutions and close
customer relationships  Exposure to mature markets
 Rapid responsiveness to market trends  Regional low cost competitors
 Excellent technical know-how
 Leading capabilities to developed technical

solutions and services

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Agenda

Inorganic Pigments
Leather
Rhein Chemie
Rubber Chemicals
Ion Exchange Resins
3. Financials
BU RUC is a leading supplier of rubber chemicals to the

rubber industry
Rubber Chemicals – facts End uses
Tire 53%
T
Business Segments
Overview
 A full portfolio of rubber chemicals for tire and
Others 3% %
technical rubber industry
Personal care 5%
Other rubber
O
 Providing technical service and premium Distributors 13%
13% products 26%
p
products based on BU sales 2009
Global demand 2010e

Americas 18%
%
EMEA 24%
 International mobilization trends
 Energy efficient tires
 Ongoing market consolidation
As
Asia-Pacific 58%
LANXESS estimates
LANXESS Fact Book – Performance Chemicals: Rubber Chemicals

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Rubber Chemicals offers a broad portfolio of premium

products to enhance rubber properties
Products (selection) Applications
 Accelerators (~28%):
thiazoles, sulfenamides (VULKACIT®)
 Antidegradants (~50%):
phenylendiamines, quinolines
(VULKANOX®)
 Specialties (~22%):
used as bonding agents (COHEDUR®),
cross linkers (VULCUREN®), fillers
(VULKASIL®), latex chemicals,
peptizing agents (RENACIT®), etc.
Leading technology position with a continuous focus on

process improvements
Production process
Business Segments
Vulcanization
Condensation
Aniline & accelerators
carbondisulfide Condensation Intermediate
+ Amine VULKACIT®
Hydrogenation Antidegradant
Aniline & para-
nitrochlorobenzene Condensation Intermediate
+ Ketone / hydrogen VULKANOX®4020
Zinc oxide
Zinc sulphate Precipitation Intermediate Roasting
Zinkoxyd aktiv®
Antidegradant
Aniline &
acetone Condensation
VULKANOX®HS Raw materials Process Product

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
BU RUC is a global player with production sites in every

region
Global demand rubber chemicals, 2010-2015e [USD]
Market environment

APAC
- ~€2.5 bn EMEA
Americas
 Overall CAGR: 4-5%
- Asia-Pacific: >5% 2010 2011 2012 2013 2014 2015
- EMEA: ~3%
Main competitors  Antwerp, Belgium
 Flexsys  Brunsbüttel, Krefeld-Uerdingen, Leverkusen,
Germany
 KKPC
 Jhagadia, India
 Sinorgchem
 Bushy Park, USA
 Sunsine  Isithebe, South Africa
Rubber Chemicals has leading market and technology

positions in a challenging environment
Business Segments
 Global production footprint with plants in  Oversupply mainly in Asia / China with still
every region growing capacities
 World-scale plant for antidegredants (AOX)  Increasing competitive pressure is fuelling
and accelerators (ACC) further market consolidation
 Reputation as provider of a broad range of
 Enhance the product portfolio of specialties
high-quality products and services
with profitable products
 Coverage of all relevant global markets
through a well established market position
 Leading position for zinc oxide produced by
wet process technology

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Agenda

Inorganic Pigments
Leather
Rhein Chemie
Rubber Chemicals
Ion Exchange Resins
3. Financials
Ion Exchange Resins – Advanced solutions for liquid

treatment
Business profile End uses
0%
Consumer 20%
Business Segments
Overview
 One of the world’s leading producer of ion Water & energy
49%
exchange resins for liquid treatment
 Providing premium products for more than Chemistry &&
others 31%%
500 applications
 More than 70 years know-how in all technical
application fields Global demand 2010e
 New business field of membrane filtration A
Americas 30%
technology EMEA 35%
 Increased water demand for growing
population in a more urban world
Asia
Asia-Pacific 35%
LANXESS estimates based on Freedonia/SRI
LANXESS Fact Book – Performance Chemicals: Ion Exchange Resins

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Ion Exchange Resins: a solution provider, manufacturing

custom designed products
Products
 Ion exchange resins
 Adsorbers
 Functional polymers
 Membranes (end of 2011)
Main usage
 Water softening
 High-purified water
 Groundwater treatment
 Hydrometallurgy
 Food and beverage industries
ION production process for application variety
Production process Product properties
 Ability to exchange ions
Business Segments
 Absorption of molecules
on polymer surfaces
 Acceleration of reactions
Suspension of Polymerization: from Functional groups are
monomer droplets droplets to small polymer applied to the beads by catalysis
beads which are made up of
a network of polymer chains
Different functional groups for different applications

Purification Catalysis Softening
CH2-CO2Na
CH2 - N SO3 H CO2 H
CH2-CO2Na

Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Membrane technology for high-quality water treatment fits

perfectly in ION portfolio
ION – “one stop shop” with membrane technology Technology properties
Membranes: acting as a barrier for substances dissolved in the water  Membrane technology for
Bacteria,
spores
additional high-quality water
treatment
 Global market size for
membrane technology ~€1 bn,
Virus expected to grow ~10% p.a.
 Membrane technology is
Divalent SiO2 coll.
ions complementary to ion exchange
resins filtration processes:
H2O
- membranes offer additional
filtration, e.g. nitrates, heavy
metals, pesticides,
RO NF UF MF
Monovalent herbicides, viruses, bacteria
ions
< 0,001 μm 0,001 - 0,01 μm 0,01 - 0,1 μm 0,1 - 1 μm - membrane filtration is
physical vs. ion exchange
Suspended resins is chemical based
solids
BU Ion Exchange Resins serves the global water trend
Market environment Global water supply and demand [bn m3]

Gap 2,700 =
39% of 2010 clean water supply
Business Segments
Total global demand (2010e) 7.000 6,900

Groundwater
 Ion exchange resins: ~€800 m 5.000
4,200 4,500 Domestic
 Membranes: ~€1 bn 3.000 Industry
Market development (2011-2015) 1.000 Agriculture
 Overall CAGR Ion exchange resins: ~4% 2010 clean water supply Current demand 2030e demand
- Asia-Pacific: ~5%
- EMEA: ~3% LANXESS production sites
- Americas: ~3%  Bitterfeld, Germany
 Overall CAGR Membrane: ~10%  Leverkusen, Germany
 Jhagadia, India (Q4 2010)
Main competitors
 Dow / Rohm & Haas (merger in 2009)
 Mitsubishi Chemicals
source: LANXESS estimates based on Freedonia/SRI


Products
70 Leather
74 Rhein Chemie
77 Rubber Chemicals
80 Ion Exchange
Resins
Ion Exchange Resins: strong technical and process expertise

support ION’s reputation as a premium-quality supplier

 High technical marketing know-how and  Currently no complementary technology for
service-solution-provider water treatment
 Global market presence and distribution  Dependency on raw material and energy
network costs
 Leadership in monodisperse ion exchange  Cyclical nature of ion exchange resins
technology business in some sub segments
 Premium-quality supplier with Lewatit® as
 Further consolidation of customers in some
well-known brand
segments
 Wide technological portfolio
 Relatively long time-to-market for new
 Service and quality ranked among the best in
products due to registration and certification
industry
issues
 Growing pharma, biotech and food industry
Business Segments

Financials
Financials

Energizing Chemistry – Performance Polymers – Advanced – Performance 87 Five years overview
Intermediates Chemicals 90 Quarterly overview
92 Financing
93 Excursion
Agenda

3. Financials
- Five years overview
- Quarterly overview
- Financing
- Excursion
Financials

92 Financing
93 Excursion
5 years summary – Balance Sheet
12/31 12/31 12/31 12/31 12/31 12/31

ASSETS – ( m)
2010 2009 2008 2007 2006 2005
Intangible assets 226 196 145 33 41 53
Property, plant and equipment 2,131 1,809 1,646 1,459 1,465 1,526
Investment in associate 13 26 49 33 5 22
Inv. in other affiliated companies 8 1 2 1 4 4
Non-current derivative fin. assets 3 16 43 0 0 0
Other non-current financial assets 74 79 72 85 37 48
Deferred taxes 170 163 137 93 84 103
Other non-current assets 113 92 134 102 94 79
Non-current assets 2,738 2,382 2,228 1,806 1,730 1,835
Inventories 1,094 849 1,048 895 1,047 1,068
Trade receivables 942 733 725 809 924 1,065
Cash and cash equivalents 160 313 249 189 171 136
Near-cash assets 364 402 0 0 0 0
Current derivative fin. assets 19 29 34 0 0 0
Other current financial assets 58 146 155 200 113 37
Other current assets 291 214 212 150 220 200
Current assets 2,928 2,686 2,423 2,243 2,475 2,506
Total assets 5,666 5,068 4,651 4,049 4,205 4,341
12/31 12/31 12/31 12/31 12/31 12/31

Equity and Liabilities – ( m)
2010 2009 2008 2007 2006 2005
Stockholders equity 1,761 1,445 1,407 1,525 1,428 1,256
Prov. for pensions a. o. p.-e. ben. 605 569 483 470 520 497
Other non-current provisions 351 307 261 242 271 302
Non-current derivative fin. liab. 11 4 30 0 0 0
Other non-current fin. liabilities 1,302 1,462 983 601 632 644
Non-current tax liabilities 50 47 91 36 38 26
Other non-current liabilities 95 77 46 47 36 32
Deferred taxes 40 38 47 60 57 75
Non-current liabilities 2,454 2,504 1,941 1,456 1,554 1,576
Other current provisions 422 352 395 371 354 401
Current derivative financial liab. 23 26 79 0 0 0
Current financial liabilities 176 94 168 65 50 172
Trade payables 664 486 484 487 602 694
Current tax liabilities 34 52 12 16 36 27
Other current liabilities 132 109 162 129 181 215
Current liabilities 1,451 1,119 1,300 1,068 1,223 1,509
Total equity and liabilities 5,666 5,068 4,648 4,049 4,205 4,341
Note: Additional financial information available at:

http://corporate.lanxess.com/en/investor-relations/financials/financial-summary/
LANXESS Fact Book – Financials: Five years overview
Financials

92 Financing
93 Excursion
5 years summary – P&L
P&L Statement –
2010 2009 2008 2007 2006 2005
LANXESS [ m]
Net sales 7,120 5,057 6,576 6,608 6,944 7,150
Cost of goods sold (5,381) (3,956) (5,115) (5,147) (5,404) (5,537)
Gross profit 1,739 1,101 1,461 1,461 1,540 1,613
Gross margin 24.4% 21.8% 22.2% 22.1% 22.2% 22.6%
Selling expenses (646) (530) (658) (659) (766) (863)
R&D expenses (116) (101) (97) (88) (87) (101)
G&A expenses (298) (235) (270) (256) (254) (285)
Other operating income 189 237 404 317 243 155
Other operating expenses (261) (323) (517) (560) (300) (491)
Other operating income - net (72) (86) (113) (243) (57) (336)
Operating result (EBIT) 607 149 323 215 376 28
Income/expenses from investment 16 8 21 (1) (16) (32)
Interest expense – net (83) (73) (36) (20) (23) (41)
Other financial result – net (47) (52) (62) (22) (50) (72)
Financial result (114) (117) (77) (43) (89) (145)
Earnings before taxes (EBT) 493 32 246 172 287 (117)
Income taxes (112) 7 (63) (60) (85) 63
Earnings after taxes 381 39 183 112 202 (54)
Minorities (2) 1 0 0 (5) (9)
Net income (loss) 379 40 183 112 197 (63)
Earnings per share [] 4.56 0.48 2.20 1.32 2.33 (0.75)
EBIT 607 149 323 215 376 28
EBITDA 890 422 602 513 638 341
Exceptionals 28 55 139 257 45 304
D&A exceptionals 0 12 19 51 8 64
EBITDA pre exceptionals 918 465 722 719 675 581
EBITDA pre exceptionals margin 12.9% 9.2% 11.0% 10.9% 9.7% 8.1%
ROCE 17.0% 5.9% 15.4% 17.7% 15.9% 12.9%

Financials

92 Financing
93 Excursion
5 years summary – Segment Data
Performance Polymers –
2010 2009 2008 2007 2006 2005
Key Figures [ m]
Sales 3,782 2,388 3,280 2,680 2,571 2,425
EBIT 443 105 208 273 238 152
Depreciation & Amortization 143 137 139 103 100 92
EBITDA 586 242 347 376 338 244
Exceptionals (1) 9 77 0 2 43
D&A in exceptionals 0 1 11 0 0 0
EBITDA pre margin 15.5% 10.5% 12.6% 14.0% 13.2% 11.8%
Advanced Intermediates –
2010 2009 2008 2007 2006 2005
Key Figures [ m]
Sales 1,321 1,104 1,310 1,204 1,140 1,161
EBIT 166 95 142 137 136 110
EBITDA 222 143 186 174 174 165
Exceptionals 0 11 0 0 0 14
Performance Chemicals –
2010 2009 2008 2007 2006 2005
Key Figures [ m]
Sales 1,978 1,530 1,930 1,970 2,205 2,351
EBIT 209 100 129 183 200 137
EBITDA 276 171 211 271 290 230
Exceptionals 5 17 38 16 1 28
Reconciliation –
2010 2009 2008 2007 2006 2005
Key Figures [ m]
Sales 39 35 56 86 115 223
EBIT (211) (151) (157) (202) (208) (337)
EBITDA (194) (134) (142) (183) (175) (291)
Exceptionals 24 18 24 45 42 196
D&A in exceptionals 0 5 0 (2) 8 27
EBITDA pre exceptionals (170) (121) (118) (136) (141) (122)

Financials

92 Financing
93 Excursion
LANXESS: ongoing efficiency increase
Key Financials [ m]
Q2 11 Q1 11 2010 Q4 10 Q3 10 Q2 10 Q1 10 2009 Q4 09 Q3 09 Q2 09 Q1 09
Sales 2,243 2,073 7,120 1,832 1,847 1,828 1,613 5,057 1,392 1,373 1,238 1,054
EBITDA pre 339 322 918 172 244 269 233 465 144 143 112 66
EBITDA*margin % 15.1 15.5 12.9 9.4 13.2 14.7 14.4 9.2 10.3 10.4 9.0 6.3
EBITDA 334 317 890 157 238 265 230 422 122 130 108 62
EBIT pre 260 251 635 93 175 200 167 204 74 77 50 3
EBIT 255 246 607 78 169 196 164 149 43 64 43 (1)
Capex** 109 68 501 295 107 60 39 275 114 52 57 52
Depr. / Amort. 79 71 283 79 69 69 66 273 79 66 65 63
Employees 15,820 15,115 14,648 14,539 14,419 14,292 14,338 14,604 14,335 14,612
*pre exceptionals; **net of finance lease

LANXESS Fact Book – Financials: Quarterly overview
Performance Polymers: turning strength into value
Key Financials [ m]
Q2 11 Q1 11 2010 Q4 10 Q3 10 Q2 10 Q1 10 2009 Q4 09 Q3 09 Q2 09 Q1 09
Sales 1,281 1,084 3,782 1,010 986 935 806 2,388 725 656 559 448
EBITDA pre 229 199 585 126 144 164 131 250 114 76 52 8
EBITDA*margin % 17.9 18.4 15.5 12.5 14.6 17.5 16.3 10.5 15.7 11.6 9.3 1.8
EBITDA 229 199 586 130 143 163 130 242 117 66 51 8
EBIT pre 191 165 442 91 108 127 97 114 77 42 19 (24)
EBIT 191 165 443 95 107 126 96 105 79 32 18 (24)
Capex** 72 40 302 196 54 32 19 133 52 25 28 28
Depr. / Amort. 38 34 143 35 36 37 34 137 38 34 33 32
Employees 4,811 4,319 4,393 4,357 4,403 4,321 4,375 4,458 4,467 4,569
*pre exceptionals; **net of finance lease

Financials

92 Financing
93 Excursion
Advanced Intermediates: two business units demonstrate

reliable resilience
Key Financials [ m]
Q2 11 Q1 11 2010 Q4 10 Q3 10 Q2 10 Q1 10 2009 Q4 09 Q3 09 Q2 09 Q1 09
Sales 395 416 1,321 341 336 347 342 1,104 377 284 285 258
EBITDA pre 65 75 222 63 55 67 57 154 30 40 38 46
EBITDA*margin % 16.5 18.0 16.8 18.5 16.4 19.3 16.7 13.9 10.8 14.1 13.3 17.8
EBITDA 65 75 222 63 55 67 57 143 24 35 38 46
EBIT pre 47 59 166 48 41 53 43 106 17 27 27 35
EBIT 47 59 166 48 41 53 43 95 11 22 27 35
Capex** 20 13 69 34 24 7 5 53 30 6 8 9
Depr. / Amort. 18 16 56 15 14 14 14 48 13 13 11 11
Employees 2,882 2,886 2,791 2,805 2,815 2,830 2,858 2,918 2,517 2,520
*pre exceptionals;**net of projects financed by customers

Performance Chemicals: profitable growth in various niche

markets
Key Financials [ m]
Q2 11 Q1 11 2010 Q4 10 Q3 10 Q2 10 Q1 10 2009 Q4 09 Q3 09 Q2 09 Q1 09
Sales 561 556 1,978 471 515 537 455 1,530 382 425 385 338
EBITDA pre 95 90 281 36 83 84 78 182 32 67 44 39
EBITDA*margin % 16.9 16.2 14.2 7.6 16.1 15.6 17.1 11.9 8.4 15.8 11.4 11.5
EBITDA 95 90 276 31 83 84 78 171 26 62 45 38
EBIT pre 76 72 214 18 67 67 62 117 16 51 28 22
EBIT 76 72 209 13 67 67 62 100 4 46 29 21
Capex 14 14 114 57 25 18 14 80 29 19 19 13
Depr. / Amort. 19 18 67 18 16 17 16 71 22 16 16 17
Employees 5,515 5,309 4,907 4,832 4,757 4,684 4,675 4,865 4,865 4,997
*pre exceptionals
Financials

92 Financing
93 Excursion
Rating agencies confirm LANXESS’ achievements – resilience

during crisis and supporting business fundamentals in 2010
s
or’
Po
ard&  Prudent financial policies and strong liquidity
nd B
Sta BB  Adequate resilience in 2009 downturn
 Good geographic diversification with increasing presence in emerging markets
y’s  LANXESS Baa2 rating is supported by (i) conservative financial policies and
od
Mo a2
Ba balance sheet structure and (ii) sound liquidity profile…
 … adequately positioned in its rating category with a stable outlook as credit
metrics are supported by supportive business fundamentals in 2010
gs
ti n
Ra
it ch
B  Improved business risk, cost position and capital structure
F
BB
 Product portfolio has moved up the value scale over the past four years
 Fitch takes comfort in LANXESS strong liquidity
source: rating agencies

LANXESS Fact Book – Financials: Financing
A well managed and conservative maturity profile
Long term financing secured Liquidity and maturity profile as per June 2011
Well balanced maturity profile

750 Bond 2014 Bond 2018
Diversified financing sources Bond 2012
7.75 % 4.125 %
500 4.125 %
Bonds & bilateral credit lines Bond 2016
5.5 %
250
Syndicated Revolving
0 EIB
Credit Facility Facility**
Synd.
-250
Credit
Development banks Facility
-500 1.4 bn
New financing source:
-750
200 m long-term credit facility
for up to seven years for R&D -1000
2011 2012 2013 2014 2015 2016 2017 >2017
financing from EIB*
Current financial liabilities Cash & Cash equivalents Near Cash Assets
* European Investment Bank; **Final maturity of EIB financing in case of utilization in 2016 or later; EIB facility currently undrawn
Financials
LANXESS Fact Book – Financials: Excursion

92 Financing
93 Excursion
LANXESS pension obligations under tight control
Clear improvement of funded status
[ m] Significant improvement of
funding ratio: ~72% achieved
Funding: ~37% Funding: ~72% German CTA implemented in
2007 – latest funding in 2010
436 with 75 m
677
Conservatively managed
1,073 1,544
pension assets: equity
investments <25%
1,108 Ongoing monitoring and
396 optimization of pension structure
2005 2010
Defined – benefit obligation External plan assets Underfunding
LANXESS runs a global sourcing strategy in order to ensure

availability of raw materials at best prices
Top 12 raw materials make up >50% of total bill Centrally managed global procurement
1,3-Butadiene
Cyclohexane
Isobutylene
Toluene
Caustic Soda
Ammonia
Styrene monomer
Chlorine
Crude Raffinate II  Ensures reliable supply of materials and services

Cyclohexanon
 >60% of orders handled through e-procurement
Ethylene
Benzene  Petrochemical raw materials with top priority
Total raw material expenses in 2009: ~€1.7 bn  Supplied by all major petrochemical companies
(2008: ~ €2.6 bn)
Financials

92 Financing
93 Excursion
LANXESS is globally the largest butadiene buyer –

purchasing power secures supply
LANXESS represents high single digit % of global butadiene demand Reliable sourcing
[kt]
 Butadiene as a raw material is
generally tight in supply
 LANXESS global sourcing and

purchasing power ensures
~7% of ~10% of reliable supply
demand demand
 Multi-supplier strategy gives
~14,000
~12,000
additional comfort
~50% of
demand
Demand for butadiene

Capacity to extract butadiene
Global consumption
source: ICIS Cracker Report with McKinsey LXS Model

Financials

Safe harbour statement
This presentation contains certain forward-looking statements, including assumptions, opinions and
views of the company or cited from third party sources. Various known and unknown risks, uncertainties
and other factors could cause the actual results, financial position, development or performance of the
company to differ materially from the estimations expressed or implied herein. The company does not
guarantee that the assumptions underlying such forward looking statements are free from errors nor do
they accept any responsibility for the future accuracy of the opinions expressed in this presentation or
the actual occurrence of the forecasted developments. No representation or warranty (express or implied)
is made as to, and no reliance should be placed on, any information, including projections, estimates,
targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions
or misstatements contained herein, and, accordingly, none of the company or any of its parent or
subsidiary undertakings or any of such person’s officers, directors or employees accepts any liability
whatsoever arising directly or indirectly from the use of this document.

CONTACT DETAIL INVESTOR RELATIONS
Oliver Stratmann
Head of Investor Relations
Tel. : +49-214 30 49611

Fax. : +49-214 30 959 49611
Mobile : +49-175 30 49611
Email : Oliver.Stratmann@lanxess.com
Verena Simiot
Assistant Investor Relations
Tel. : +49-214 30 23851

Fax. : +49-214 30 40944
Mobile : +49-175 30 23851
Email : Verena.Simiot@lanxess.com
Tanja Satzer
Private Investors / AGM
Tel. : +49-214 30 43801

Fax. : +49-214 30 959 43801
Mobile : +49-175 30 43801
Email : Tanja.Satzer@lanxess.com
Constantin Fest
Institutional Investors / Analysts
Tel. : +49-214 30 71416

Fax. : +49-214 30 40944
Mobile : +49-175 30 71416
Email : Constantin.Fest@lanxess.com
Joachim Kunz
Institutional Investors / Analysts
Tel. : +49-214 30 42030

Fax. : +49-214 30 40944
Mobile : +49-175 30 42030
Email : Joachim.Kunz@lanxess.com
MASTHEAD
As of October 2011
LANXESS AG
51369 Leverkusen
Germany
Tel. +49 214 30 33333
www.lanxess.com
Designed and printed by

Kunst- und Werbedruck
32549 Bad Oeynhausen
Germany

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LANXESS Fact Book

LANXESS – Business Segments Financials

The LANXESS Board of Management always welcomes an opportunity to acknowledge the

LANXESS is a young company. We have been “energizing chemistry” as an independent

Axel C. Heitmann Bernhard Düttmann

LANXESS is one of the world’s leading chemical companies, with a focus on

Competitiveness: LANXESS has established powerful market positions on a global

LANXESS relies on these strategic cornerstones for accelerated growth:

Sustainable dividend strategy: LANXESS first initiated dividend payments in 2006

LANXESS – Energizing Chemistry

LANXESS – Business Segments Business Segments Business Segments Financials

1. LANXESS – Energizing Chemistry

LANXESS – A leading specialty chemicals group

LANXESS – Energizing Chemistry

Performance Polymers Advanced Intermediates Performance Chemicals

Globally No. 1-3 Europe No. 1-2 No. 1-4 in niches

2 LANXESS Fact Book – Overview

8 LANXESS Fact Book

Portfolio management allows for regrouping of LANXESS

Butyl Rubber Advanced Industrial Intermediates Material Protection Products

Performance Butadiene Rubbers Saltigo Inorganic Pigments

Technical Rubber Products Functional Chemicals

Semi-Crystalline Products Leather

Ion Exchange Resins

Sales: >500 m Sales: 200 m – 500 m Sales: <200 m

LANXESS Board of Management: directly connected to the

Corporate Aliseca Human Resources Accounting

LANXESS Fact Book – Overview

LANXESS Fact Book 9

LANXESS – Business Segments Business Segments Business Segments Financials

2003-2005: immediate focus on transformation of LANXESS

5 LANXESS Fact Book – Overview

2006-2007: first upgraded ratings show achievements of

6 LANXESS Fact Book – Overview

10 LANXESS Fact Book

2008-2010: resuming growth after responsible crisis

7 LANXESS Fact Book – Overview

Portfolio transformation towards higher earnings growth

Divested Year Leadership Cyclicality Profitability

LANXESS Fact Book – Overview

LANXESS Fact Book 11

LANXESS – Business Segments Business Segments Business Segments Financials

Worldwide present serving a broad customer range with

EMEA w/o Agro

Latin America Consumer

Capex*: 501 m Sales: 7,120 m Employees: 14,648

*net of finance lease and net of projects financed by customers

LANXESS – Improvement trend of financials, based on

2003 2004 2005 2006 2007 2008 2009 2010

EBITDA* [ m] 311 447 581 675 719 722 465 918

Gearing [%] 128 101 54 36 30 65 55 52

Dividend [] 0.25 1.00 0.50 0.50 0.70

Ongoing performance improvement

12 LANXESS Fact Book

1. LANXESS – Energizing Chemistry

2004-2010 transformation and growth: + >100% EBITDA*

2004 2005 2006 2007 2008 2009 2010

LANXESS Fact Book 13

LANXESS – Business Segments Business Segments Business Segments Financials

Sustainable success based on LANXESS DNA

operating segments; pre exceptionals; net of finance lease