Covestro Investor Presentation, June 2018

#PushingBoundaries
Investor Presentation
London, June 2018
00_545891_Pushingboundaries_Titelseite_Booklet_297x182mm_0518.indd 1 01.06.18 10:03
Investor Presentation
#PushingBoundaries
London, June 2018
Disclaimer
This presentation may contain forward-looking statements based on current assumptions and forecasts
made by Covestro AG.
Various known and unknown risks, uncertainties and other factors could lead to material differences between
the actual future results, financial situation, development or performance of the company and the estimates
given here.
These factors include those discussed in Covestro’s public reports, which are available on the Covestro
website at www.covestro.com. The company assumes no liability whatsoever to update these forward-look-
ing statements or to adjust them to future events or developments.
Strategy
Dr. Markus Steilemann, CEO
June 28, 2018
covestro.com CMD 2018 │ Strategy

Agenda
Capital Markets Day Covestro, London
Thursday, 28th June 2018
9:30 CEO – Strategy
10:30 CFO – Financial Performance
11:00 Q&A
12:00 Lunch break
13:00 Breakout session I – hosted by heads of segments
14:00 Breakout session II – hosted by heads of segments
15:00 Breakout session III – hosted by heads of segments
16:00 Informal get-together & cocktail dinner
17:30 End
1 CMD 2018 │ Strategy

The presentation team
Financial
Strategy
Performance
Dr. Markus Dr. Thomas

Steilemann Toepfer
CEO CFO

The breakout sessions team
Heads of business segments
Coatings,
Polyurethanes Polycarbonates Adhesives,
Specialties
Daniel Meyer Michelle Jou Michael Friede

Innovation and sustainability driving growth
Global leader in high-tech material solutions
Above GDP volume growth

driven by innovation and sustainability trends
More than half of sales generated by resilient businesses

as global leader in highly attractive niches
Balanced supply and demand outlook

for all our businesses
Leading innovation in materials and operations

and pushing boundaries in digitalization
Non-financial targets support growth strategy

aligned with UN Sustainable Development Goals

~4%
Average core
volume
growth per
annum

Higher global GDP expectation leads to higher industry growth
Structural growth above GDP driven by sustainability trends
UN SDGs(a) Needs to be served Industry demand outlook(b) 2017 – 2022e

related to climate change: ('000kt) CAGR
• Zero emission concepts 16.9

~5%
~21.3
• Low-energy buildings
PU(c)
related to increasing mobility: 2017 2022e
• Energy-efficient mobility
• Lightweight transportation CAGR
• E-mobility, autonomous driving ~5.3
4.3 ~4%
PC
related to growing population:
• Food preservation
• Low-cost durable goods 2017 2022e
• Medical applications
CAGR
~3.9
related to increasing urbanization: 3.3 3-4%
CAS(d)
• Affordable housing
• Living comfort
• Public infrastructure
2017 2022e
6 CMD 2018 │ Strategy Notes: (a) Most impacted goals out of 17 Sustainable Development Goals, set by the United Nations’ “2030 Agenda for Sustainable Development”
(b) Assumes global GDP CAGR 2017–2022e of ~3%; (c) Comprises MDI, TDI and polyether polyols
(d) Shows PU raw materials industry demand in coatings, adhesives and sealants; additionally TPU, elastomers and PC/TPU films
Source: Covestro estimates
Refrigeration: Gaining share in a strongly growing market
Lower energy consumption and higher consumer satisfaction
Trend Need Growth Covestro contribution
More and better Number of Raw materials for

Population & refrigerators(a) particularly effective
prosperity growth cooling devices
insulating foams
CAGR: ~3%
• 40% smaller pores allow
Refrigeration up to 10%
insulation better insulation
foam(b)
• Support refrigerators with
CAGR: ~8% higher energy efficiency
Covestro • Less material cost and

in 2015-2017 higher production
speed
CAGR: 12%
7 CMD 2018 │ Strategy Sources: (a) Euromonitor Consumer Appliance Annual Report, 2017, for 2016-2021e based on retail units
(b) IAL PU Global Database, 2017, for 2016 -2019e based on consumption in kt
Auto: Benefitting from E-vehicles and autonomous driving
Significant outperformance of car industry growth
Trend Need Market Covestro contribution
Reduced weight, increased comfort Global car Pioneering all-around

Increasing production(a) material concept
mobility and freedom of design
CAGR: ~3% • Efficient thermal
management to reduce
Global hybrid energy demand
and electrical
• New lighting functions
car production(a)
revolutionize design and
CAGR: ~25% safety
Relevant car • Most stringent weight

applications(a) reductions
• Attractive alternatives to
CAGR: ~5%
conventional materials:
Covestro polymers to replace
glass and metal
2015-2017
CAGR: ~7%
8 CMD 2018 │ Strategy Source: (a) LMC 01/2017 for 2016-2021e and Covestro estimate
Wind power: Substitution drives growth
Novel materials replacing existing solutions
Trend Need Growth Covestro contribution
More durable and economical wind Energy Novel components for wind
Climate change power plants consumption(a) power plants
CAGR: ~3% • Rotor blades:
polyurethane resins for
Offshore wind more stability and
energy(b) durability, to replace
CAGR: ~19% epoxy resins
• Towers:
Covestro polyurethane materials
in 2015-2017 for anti-corrosion
coatings
CAGR: 29%
• Sea cables: elastomers
for protection systems
9 CMD 2018 │ Strategy Sources: (a) BP, Energy Outlook, 2017, for 2015-2020e based on million tons oil equivalent
(b) Navigant, World Wind Energy Market Update, 2017, for 2016 -2021e based on mega watt
Strong growth track record
Broad-based core volume growth of +5.5% CAGR in 2015-2017
Sales split by regions Sales split by end-market

2017 Group sales in € million % of 2017 Group sales
Core volume growth in %, CAGR 2015-2017 Core volume growth in %, CAGR 2015-2017
GLOBAL
14,138
China Vol. +5.5%
Sports / Leisure, Automotive(a) /
3,062 Cosmetics, Health, Transportation
Vol. +13% diverse industries 19% Vol. +5%
EMLA Vol. +8% 26%
APAC 5,997
4,743 Vol. +3%
Vol. +10%
Wood/
18% Furniture
Chemicals(b) 8% Vol. +5%
Vol. +4%
Germany 12%
1,723 17%
US Electrical/
Vol. +3% Electronics
2,777 Construction
Vol. 3% NAFTA Vol. +6%
Vol. +3%
3,398
Vol. +4%
10 CMD 2018 │ Strategy Notes: Based on Covestro Annual Report 2017 ; EMLA = Europe, Middle East, Africa, Latin America; NAFTA = USA, Canada, Mexico; APAC = Asia, Pacific
(a) Automotive with core volume CAGR 2015-2017 of +7%
(b) Growth of core and non-core volumes
~4%
Average core
volume
growth per
annum
>50%
Group sales in
resilient
businesses

Over 50% of sales generated with resilient businesses
Resilient business contains highly differentiated products
Sales by segments Highlights

% of 2017 Group sales
Resilient businesses • Resilient portion of PCS business is driven by

high-end industry applications e.g. automotive,
CAS(a) electrical, healthcare
16% Polyols
Resilience Resilience • CAS business is resilient in sales and earnings

in PCS in MDI due to characteristics of niche ingredient
~60% ~25% chemicals
MDI(a)
PCS resilient
resilient
~16% • Polyols business is resilient in sales and earnings
as demonstrated over the last decade
MDI
PCS • Resilient portion of MDI business consists of

~11%
special grades for downstream products requiring
Others TDI formulation know-how and customer interaction
along the value chain
12 CMD 2018 │ Strategy Note: (a) Adjusted prior-year figures to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to the Coatings, Adhesives,
Specialties segment as of January 1, 2018
Resilience measured as standard deviation of contribution margin per kg versus respective average portfolio
CAS: Stable margins driven by differentiated product portfolio
Enabling high performance
#1 €2.3bn 20.9% 16%

Producer of aliphatic Sales EBITDA margin of total Covestro sales
isocyanates and PUD(a) 2017(b) 2017(b) 2017(b)
Ingredients for Ingredients for Ingredients for

surface coatings adhesives and specialties
sealants
13 CMD 2018 │ Strategy Notes: (a) Based on total aliphatic isocyanates volume in 2017 relative to competitors as per Covestro estimates and based on total
polyurethane dispersions (PUD) volume in 2017 relative to competitors as per Covestro estimates
(b) Adjusted prior-year figures to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to the
Coatings, Adhesives, Specialties segment as of January 1, 2018
CAS demonstrated solid underlying growth of ~4% p.a.
Driven by High Growth Specialties businesses
CAS sales split by businesses Highlights

Covestro sales share FY 2017(a), rounded
Core volume growth, CAGR 2015-2017 • Adjusted core volume growth of 3.7% CAGR in
Diverse High 2015-2017(a)
Growth Specialties
Vol. +7%
• Growth driven by all businesses but coatings
Elastomers
Vol.+8% 5%
10% • High Growth Specialties businesses generate
~35% of sales: Thermoplastic Polyurethanes
Specialty Films
Coatings (TPU), Specialty Films and Elastomers
Vol. +6% 10% Raw Materials
45% Vol. -1%
• Coatings Raw Materials businesses burdened by
Thermoplastic
weak end markets like marine, oil and gas as well
10% as refinishing
Polyurethanes
Vol. +13%
Adhesives &
20%
Sealants
Raw Materials
Vol. +8%
14 CMD 2018 │ Strategy Notes: (a) All figures adjusted to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to Coatings,
Adhesives, Specialties segment as of January 1, 2018 as well as planned termination of trading activities and reduced contract
manufacturing
TPU: Leading supplier for high-performance resins
Core volume growth of 13% (CAGR 2015-2017)
Thermoplastic Polyurethanes (TPU) highlights Competitive landscape of key TPU producers in 2017
Global
#3 ~6% Lubrizol Covestro BASF
Geographic presence
Producer of Thermoplastic Market growth Huntsman
Polyurethanes CAGR 2017-2022e(a)
Wanhua
~10% 6 Huafon Coim
of total CAS Production facilities APAC & EMEA SMEs

(e.g. Innov, Miracll, Bangtai)
sales 2017 globally(b) Local
Narrow Product portfolio Wide
Bubble size indicates

2017 sales volumes
15 CMD 2018 │ Strategy Notes: (a) Global thermoplastic polyurethanes market

(b) Incl. 50/50 JV with DIC in Japan
Specialty Films: Leading solution provider for PC- & TPU-films
Specialty Films highlights Competitive landscape of key films producers in 2017(a)
Global
#1or #2 6-7% Mitsubishi

Covestro
3M
Sabic
Geographic presence
Producer of PC- and TPU- Market growth
films, depending on region CAGR 2017-2022e(a) Teijin
SWM
Dingzing
~10% 5 Gerlinger
API
of total CAS Production facilities
Longhua
sales 2017 globally Local
Commodity Market attractiveness Specialties

2017 sales volumes
16 CMD 2018 │ Strategy Notes: (a) Global PC- and TPU-films market
Elastomers: Leading supplier for PU cast elastomer systems
Elastomers highlights Competitive landscape of PU elastomer producers in 2017(a)
Wide
#2 3-4% Lanxess
Producer of Market growth Covestro
Product portfolio
PU elastomer systems CAGR 2017-2022e(a) COIM
Notedome
ERA
Dow
Anderson-
BASF Mitsui
~10% 11 Multiple local
Chinese
competitors
Huntsman
of total CAS Production sites
sales 2017 globally Narrow
Commodity Market attractiveness Specialty

2017 sales volumes
17 CMD 2018 │ Strategy Notes: (a) Global PU elastomers market

PCS: Strategic focus on increasing resilience
Global leading producer of polycarbonates
#1 €3.7bn 22.8% 26%

Producer of Sales EBITDA margin of total Covestro
PC globally(a) 2017 2017 sales 2017
Mobility Electronics Consumer Electrical Mobility Healthcare

Exterior Robot housing electronics LED street lamp Charging station Drug delivery
Adapter
18 CMD 2018 │ Strategy Notes: (a) Based on nameplate capacity at year end 2017 as per Covestro estimates
Growing share of resilient business
Covestro targets to outgrow PC industry in differentiated business
Development of resilient portion of PCS volumes Covestro highlights

Covestro sales volumes in kt
~ flat Product portfolio improvement
Covestro utilization
+15pp • Goal to increase resilient portion of PC volumes to 65%
long term
>4%
Standard business • Capacity growth and increasing share of resilient
CAGR
>200kt business result in significantly higher volumes in
8% additional volumes sold differentiated, high-requirement applications
in 2022e vs 2013
CAGR • Structural improvement of average contribution margin
Resilient business Higher asset utilization

~10%
CAGR
>60% >600kt • Volume leverage through significant improvement of
9% ~55% additional volumes sold capacity utilization by ~15 percentage points
<50% in 2022e vs 2013
CAGR • Significantly higher output from unchanged number of
2013 2017 2022e primary production sites
1,270kt 1,480kt >1,700kt Covestro capacity(a)
No. of primary
5 5 5 PC production sites
19 CMD 2018 │ Strategy Notes: (a) Nameplate capacity for PC resins at year end
Growing share of compounded resins
Formulations with tailored property profiles and significant added value for customers
Share of compounded resins Concept of compounding

PCS sales split by product group
Internally sourced Externally sourced
Compounded
resins
35% ABS or ASA e.g. to improve
Blend toughness at low temperature
Resins partner PBT or PET e.g. to improve
65% Compounding chemical resistance and flow
Fillers and e.g. glass fiber to provide high

FY 2010 PC resins
reinforcement
stiffness
e.g. UV / light stabilizers to

Compounded Processor Functional improve long-term stability
resins additives e.g. flame retardants
46%
Resins Application e.g. colors to provide optical

Colorants &
54% special effects effects
FY 2017
20 CMD 2018 │ Strategy Notes: Majority of compounded resins are part of the resilient portion of PCS sales
1000+ grades position Covestro with broadest offering
Covestro leads through innovations
Breadth of PC product offering by Covestro and key competitors across end markets(a) Highlights
Covestro SABIC MEP Teijin Lotte Trinseo Kingfa(b) Zhetie(c) • Covestro has broadest
(D) (KSA) (JP) (JP) (KR) (US) (PRC) (PRC) product portfolio and
continues to expand,
Mobility especially in the resilient part
• PC is an innovation-driven
Healthcare
industry and Covestro has
Electrical largest innovation budget
in industry(a)
Electronics • Differentiation increases
earnings resilience and
Appliances independence of single
customer industry cycles
Consumer products • Differentiation lowers
exposure to new potential
Construction industry players with often
limited product offerings of
Optical data storage few low-end grades
Water bottles
Broad offerings Medium offering Limited to No offering
21 CMD 2018 │ Strategy Notes: (a) Covestro estimate

(b) Compounder in PRC
(c) 2015 industry entrant in PRC
PUR: Almost half of sales in resilient businesses
Inventor of and leader in polyurethanes
#1 €7.4bn 29.5% 52%

PU producer globally(a) Sales EBITDA margin of total Covestro
2017(b) 2017(b) sales 2017(b)
Cold Chain Construction Cost leadership Comfort Automotive Sustainability

e.g. refrigerator e.g. metal panel e.g. process e.g. furniture e.g. instrument e.g. CO2-based
technology upholstery panel polyether polyols
22 CMD 2018 │ Strategy Notes: (a) Based on total combined nameplate capacity for MDI, TDI and polyether polyols at year end 2017 as per Covestro estimates
(b) Adjusted prior-year figures to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to the Coatings, Adhesives,
Polyether polyols demonstrate inherently stable margins
Resilience of polyether polyols business confirmed in 2017
Spread development Highlights
• Resilient industry margins over the last

decade reflective of overall Covestro polyether
polyols profitability
2005 – 2017 Spreads • Single capacity addition with little influence

from around 800US$/t to 1,000US$/t on supply and demand dynamics
• Spreads not materially impacted by high

volatility of propylene prices, particularly
during the financial crisis
• Propylene oxide supply and demand

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
dynamics create local pricing opportunities
in the short term
Global polyols price(a) Global propylene price(a)
23 CMD 2018 │ Strategy Notes: (a) The global average polyols / propylene prices have been calculated based on the polyols / propylene prices in Europe,
US and China and weighting this average against the respective demand in those regions
Resilient portion of MDI business accounts for ~25% of sales
Consistently higher earnings than standard grades
Resilient MDI applications(a) Large-scale innovation
• Focus on three large-scale innovation hubs in Pittsburgh,

Resilient share of MDI volumes has ~20% higher gross margin Leverkusen and Shanghai
(2006-2017 average)
̶ Formulation know-how and tailor-made systems
Joint sales of polyols and MDI Specialty or downstream products ̶ Full scope of application development
e.g. CASE(b), automotive, e.g. selected MDI grades (pre-
construction, appliance polymers, blends, monomeric) ̶ Cost-efficient business structures
• Centralized systems hubs in Europe and North America benefit

Formulations as market access Strong interaction with customers
from economies of scale and cost-efficient feed from world-scale
requirement along value chain MDI and polyether polyols assets
e.g. automotive, appliances joint projects for e.g. window frames,
wind mills • Systems business in Middle East and APAC handled by local
system houses
24 CMD 2018 │ Strategy Notes: (a) Resilience measured as standard deviation of gross margin vs average portfolio
(b) CASE: Coatings, adhesives, sealants and elastomers
~4% 
Average core Solid overall
volume industry margin
growth per outlook
annum
>50%
Group sales in
resilient
businesses

Less than 50% of sales are supply and demand driven
Normal global GDP growth to support a balanced outlook
Sales by segments Highlights

• TDI industry expected to rebalance to a normal

supply and demand situation, fly-up margin
expected to fade away short term
CAS(a)
16% Polyols
• MDI industry supply and demand expected to
remain balanced
MDI(a)
PCS resilient
resilient • PC industry supply and demand expected to
~16%
remain balanced mid term
MDI
PCS
~11%
Others TDI
Supply-demand-
driven businesses
26 CMD 2018 │ Strategy Note: (a) Adjusted prior-year figures to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to the Coatings, Adhesives,
Resilience measured as standard deviation of contribution margin per kg versus respective average portfolio
MDI industry supply and demand to remain balanced
Above GDP demand growth supports solid industry utilization
MDI demand development (2012 – 2022e) MDI supply development (2012 – 2022e)
(kt)(a) (kt)(b)
% growth as CAGR % growth as CAGR BASE
BASE
~5%
~5% ~9,600
4.9% ~6% HIGH
~8,600 ~7% HIGH
5.5%
7,490
6,710 ~4% LOW
~4% LOW 5,900
5,130
2012 2017 2022e 2012 2017 2022e
Industry highlights
• Budgeted demand growth of ~5% may be conservative given strong demand trends
• Demand growth of 7% (high case) would require two additional world-scale plants compared to base case
• Structurally sound demand for the foreseeable future, driven by solid GDP growth and substitution trend
• Major additions expected until 2022e: BASF, Covestro, Dow/Sadara, SLIC and Wanhua
27 CMD 2018 │ Strategy Notes: (a) Assumes global GDP CAGR 2017–2022e of ~3%
(b) Based on historical and announced future nameplate capacities
TDI supply additions to rebalance industry
Moving to a balanced industry with fly-up margin expected to fade away short term
TDI demand development (2012 – 2022e) TDI supply development (2012 – 2022e)
(kt)(a) (kt)(b)
BASE
~6%
~4%
1.1%
~3,450 7% HIGH
2.8%
~2,770 4.5% HIGH 2,540
2,400 5% LOW
2,280
1,980
3.5% LOW
2012 2017 2022e 2012 2017 2022e
Industry highlights
• Demand growth of ~4% may be conservative in light of 4.4% actual growth in 2017
• TDI margins currently above long-term average due to delayed start-up of major investments
• Margins expected to normalize mid 2018 based on new world-scale capacities
• Major additions expected until 2022e: BASF, Dow/Sadara, Wanhua
• Possible industry consolidation in APAC
PC industry supply and demand to remain balanced mid term
Capacity additions announced for end of forecasting period with high uncertainties
PC demand development (2012 – 2022e) PC supply development (2012 – 2022e)

(kt)(a) (kt)(b)
BASE
~6%
~4%
1.2% ~6,760 7% HIGH
3.2%
~5,240 5% HIGH 4,750 5,050
4% LOW
4,310
3,680
3% LOW
2012 2017 2022e 2012 2017 2022e
Industry highlights
• Electric mobility and autonomous driving could accelerate demand growth above base case
• Major additions expected until 2022e: Covestro, Heng Yuan, Lotte, Luxi, Ningbo Zhetie Dafeng, SABIC-Sinopec,
Wanhua, ZPC
• Supply CAGR at 4-5% in 2017-2022e provided that announced capacity additions for 2022 would not materialize
• New industry players likely to penetrate low-end applications
Industry constantly witnesses delays and cancellations
Significant supply delays remain industry norm
Delays between initially announced start-up date and actual production start Highlights
in number of years
• Long lead time for investments of up
PC TDI MDI to a decade in PC, TDI and MDI
11
makes delays the norm
10
9
• No of-the-shelf but individual plant
designs prolong planning and
8
construction process
7
• Highly sophisticated chemical
6
processes requires long ramp-up
5
times
4
• Long investment cycles increase
3
chance of cancelations
2
0
SABIC- PTT, MGC, Wanhua, BASF, Heshan Sadara, Wanhua, Huntsman, BASF, Sadara, Wanhua,
Sinopec, Thailand PRC PRC Germany Juli, PRC KSA PRC USA PRC KSA USA
PRC
30 CMD 2018 │ Strategy Source: Covestro estimates

Historic forecasts always overstated supply additions
Significant supply delays remain industry norm
Global net supply additions between 2014 and 2017 Highlights

Industry supply growth 2017 versus 2014,
based on nameplate capacities (kt)
• Delays and cancellations are
TDI MDI PC commonly neither announced by
18% companies nor publically available
16%
11% • Difficult chemical production process
like TDI, MDI and PC increase the
4% likelihood of significant start-up delays
4%
• A world-scale TDI plant represents
-1% ~10% of the overall industry supply
-4%
-7% • Limited capacity additions in PC
industry explain small difference
-20%
Nexant(a) Nexant(a) Nexant(a)

Actual 2017 supply(b) Actual 2017 supply(b) Actual 2017 supply(b)
Difference Difference Difference
31 CMD 2018 │ Strategy Source: (a) Nexant 2015 (at Covestro IPO)
(b) Covestro estimates
Plant closures considered as “wild cards”
Unrecognized plant closures lead to systematic supply overstatements
Plant closures between 2014 and 2017 Highlights

Reduction of global nameplate capacity (in kt)
• TDI industry with steepest cash cost
differences shows highest decrease in
industry capacities through closures
• PC industry with accentuated cash

-4% cost differences shows strong
decrease in industry capacities
-6% through closures
• MDI industry with relatively small cash

cost differences shows minor
decrease in industry capacities
through closures
-16%
TDI PCS MDI
32 CMD 2018 │ Strategy Source: Covestro estimates

~4% 
Average core Solid overall
volume industry margin
growth per outlook
annum
>50% #1
Group sales in Global
resilient leader
businesses

Covestro is a leader across its entire portfolio
Global industry positions
Polyurethanes Polycarbonates Coatings, Adhesives, Specialties

Aliphatic Polyurethane
MDI TDI Polyether polyols PC isocyanate derivatives dispersions
#1 in PUR #1 in PC #1 in CAS
Capacity share in 2017(a)
Others Others
10% Others Others 10%
24% 19%
30% Others 29% 19%
48% 49%
13% Others
58%
20%
Top 5: 90% Top 5: 76% Top 5: 52% Top 5: 81% Top 5: 90% Top 5: 42%
2022e: Top 5 share 2022e: Top 5 share 2022e: Further 2022e: Top 5 expected 2022e: Industry 2022e: Industry
expected to remain expected to remain consolidation to account for ~70% structure expected structure expected
stable at 90% stable at 76% expected, especially to remain stable to remain stable
in China
34 CMD 2018 │ Strategy Note: (a) Based on total nameplate capacity at year end 2017 relative to competitors
Pushing boundaries in polymer innovation
Innovation leadership in materials
Highlights Benefits
• Heat-resistant, tough and elastic PC film Makrofol® ID is designed for passport data
Film solutions for forgery- page (inlay) that may carry other security features like a chip and antenna
proof ID cards • The passport inlay is held securely by a thin hinge, made of multilayer composite TPU
film Platilon®
CO2-based polyols in first

commercial application • Recticel manufactures KAPUA® foam mattresses with more than one-seventh of oil
(market testing) by content replaced by CO2-based chemicals (e.g. cardyon®)
• Covestro is developing more CO2-based products for applications in sport, appliances,
construction and others
CFRTP commercial • Mid double-digit million Euro amount invested in first commercial production in Germany
production inaugurated • Commercial application in e.g. Haier’s Casarte premium air conditioner housing
35 CMD 2018 │ Strategy Notes: CFRTP: Continuous Fiber Reinforced Thermoplastics Composites
Pushing boundaries in making business
Innovation in business models
Highlights Benefits
• Customers can efficiently purchase standard products online at current market prices
Digital marketplace
for chemicals • Materials valued at up to €1bn to be sold via the platform by end of 2019
• Platform to be launched in 2018
• Reliable, simple and efficient purchasing experience for small- and medium-sized
Online business in Asia customers (with maximum quantity orders)
on Alibaba
• covestrochina.1688.com makes available polycarbonate as well as pre-products for
polyurethane foams, coatings and adhesives
• Utilize digitalization to deliver customers real time analysis of their performance and
Digital technical services enable operational decisions, e.g. real-time quality and performance improvements
(DTS)
• Project using Covestro and customer data and self-learning AI algorithms in pilot phase

~4%  5
Average core Solid overall Non-financial
volume industry margin targets 2025
growth per outlook
annum
>50% #1
resilient leader
businesses

Non-financial ambition supports growth strategy
Covestro non-financial targets 2025
Our R&D project portfolio is aligned with UN Sustainable Development Goals
100% of suppliers compliant with our sustainability requirements
Reduce specific greenhouse gas emissions by 50% by 2025
Ten million people in underserved markets benefit from our business solutions
Getting the most out of carbon

Target N°1: Sustainability-related R&D
Increase share of sustainability-related R&D projects to 80% by 2025
Key industries rely on sustainable solutions
• Aligned with the People, Planet, Profit (PPP)

principle
• Strong focus on the UN Sustainable
Development Goals (SDGs)
• Capture promising growth opportunities with
innovative sustainable solutions
39 CMD 2018 │ Strategy Notes: By 2025, 80 % of R&D project spending of Covestro will be targeted in areas that contribute to achieving these goals, either undertaken in partnership
or endorsed by recognized institutions
Target N°2: External sourcing
100% of suppliers compliant with our sustainability requirements by 2025
Together For Sustainability
Externally
audited by
• Dynamic and collaborative initiative founded in 2011, currently 19 members

• Offers the infrastructure to support high-quality, third-party sustainability assessments and audits by EcoVadis
40 CMD 2018 │ Strategy Notes All suppliers of Covestro with recurrent annual spending exceeding €100,000 will be assessed and have to achieve compliance with Covestro’s
sustainability requirements
Target N°3: Emissions
Reduce specific greenhouse gas emissions by 50% by 2025
Highlights Benefits
• Conversion cost advantage of around 20% vs. competitor technologies

Melt process
in world-scale • Raw material cost on par or better than competitive technologies
PC production
• Pushing economies of scale to new standard of 150kt/a per line in Caojing, China
TDI / HDI • Capex reduced by 20%(a)

gas-phase • Reduced conversion cost due to lower energy demand and reduced solvent usage
phosgenation
• Reduced phosgene hold-up by 40% and energy consumption by 60% vs liquid phase
NaCl • Consumes 30% less electricity vs. conventional processes

electrolysis
with ODC(b) • Significant economic and ecological benefits vs conventional processes
• World-scale ODC plant planned in Tarragona, Spain
41 CMD 2018 │ Strategy Notes: Covestro aims to reduce specific greenhouse gas emissions –those generated per metric ton of product produced– by 50% compared to year 2005
(a) The plant size for a given capacity is smaller, because the reaction time for the gas-phase phosgenation process is shorter than the conventional
process and results in a significantly higher throughput
(b) NaCl = Sodium Chloride; ODC = Oxygen Depolarized Cathode
Target N°4: Inclusive business
Help ten million people in underserved markets with sustainable solutions by 2025
Highlights Benefits
• Food security: PCS solutions for smallholder farmers

Solar dryer
domes • Avoid food wastage after harvest, benefitting farmers economically
• Locations: Thailand, Vietnam, Myanmar, India
• Based on polyurethane rigid foam (PIR)

Affordable
houses • With outstanding insulation and mechanical properties
• Locations: Iraq, Malaysia, Philippines, India
• PIR technology based toilets

Hygienic
sanitation • Community and school toilets as the next step
• Locations: India, Malaysia
42 CMD 2018 │ Strategy Notes: Covestro aims to help improve the living conditions of ten million people in underserved markets by the year 2025. Covestro focuses on affordable
housing, sanitation and food security applications in which Covestro materials offer significant benefits
Target N°5: Return on carbon
Develop a significant and universally accepted metric to set a quantitative target for 2025
Highlights Partners
Our vision is to drive a new perspective on value creation through carbon

• Improving carbon productivity along the value chain means generating more
value from less fossil fuel carbon
• The alternative ROCE measures the return on carbon employed in making
materials and products
Our role as initiator of the Carbon Productivity Consortium:

• Promote a group of like-minded organizations who want to seed the
breakthrough idea of carbon productivity across industry and beyond
• Catalyse new insights about carbon at various stakeholder levels
• Support the collaborative creation of a tool, soon available as open source

~4%  5
Average core Solid overall Non-financial
volume industry margin targets 2025
growth per outlook
annum
>50% #1
resilient leader
businesses

Financial Performance
Dr. Thomas Toepfer, CFO
June 28, 2018
covestro.com CMD 2018 │ Financial Performance

Attractive growth fuels solid cash generation
Covestro key investment highlights
Attractive volume leverage

driven by above GDP industry growth
Capex with high ROCE

with mid-term debottlenecking and preparation of world-scale investment
Continuous cost discipline

delivered through profitability enhancement program “PEP”
Solid cash generation

volume leverage and cost discipline to counterbalance fading fly-up margins in TDI
Use of free cash with focus on shareholder value

with attractive dividend policy, return of excess cash and disciplined M&A strategy
1 CMD 2018 │ Financial Performance

~4%
core volume growth
€200-300m
volume leverage

Higher volumes generated €1.1bn additional sales
Covestro sales bridge 2015-2017
in € million
+1,298
14,138
-348
+1,106
12,082
+17.0%
4,458kt 4,956kt
Core +5.5% Core
volumes CAGR volumes
FY 2015 Volume Price FX FY 2017

Sales volume growth translated into €0.5bn additional EBITDA
Covestro EBITDA bridge 2015-2017
in € million
+1,510
3,435
-78
-137
+499
1,641
+109.3%
FY 2015(a) Volume Pricing Delta FX Other items FY 2017
4 CMD 2018 │ Financial Performance Note: (a) adjusted EBITDA

Core volume growth of 4% to contribute to EBITDA
Cumulative EBITDA volume leverage of more than €1bn in next 5 years
core
volume +7.5% +3.4% ~4%
growth CAGR
in € million
499
232
267
267
2016 2017 2018e 2019e 2020e 2021e 2022e
Volume leverage per annum Cumulative volume effect

~4%
core volume growth
€200-300m
volume leverage
€650-700m
capex expected
in FY 2018

Mid-term debottlenecking projects
Highly competitive specific investment cost leads to high ROCE benefits
PCS capacity expansion – Caojing MDI capacity expansions Advantages of debottlenecking projects
Capex €/kt Capex €/kt
Lower specific capital investment required
due to:
Costs Costs Costs Costs Costs • Process improvement through progress
-30% -70% -50% -35% -70% on learning curve: technology progress
enables higher throughput
• Only adjustment or replacement of
selected equipment necessary, many
parts of the plants suitable for higher load
• Site infrastructure existing and only to be
adjusted to minor extent
2005 2009 2016 2018e-2022e 2008 Caojing, 2014 Caojing, 2019e 2022e
Phase I Phase II Phase III Phase IV Phase I Phase II Brunsbüttel Tarragona
(+100kt) (+100kt) (+200kt) (+200kt) (+350kt) (+150kt) (+200kt) (+50kt)

Covestro planned capacity additions
Mid-term growth through debottlenecking projects
2018 2019 2020 2021 2022
TDI +20kt Dormagen
MDI +40kt Caojing MDI +100kt Caojing

PUR
MDI +200kt Brunsbüttel

MDI +50kt Tarragona
PET +60kt Channelview

PET +30kt St. Clara
OPTION OPTION OPTION
+50kt Caojing +50kt Caojing +50kt Caojing +50kt Caojing

PCS
+130kt(a) site TBD

BACKBONE
New chlorine plant Tarragona
8 CMD 2018 │ Financial Performance Note: (a) new PC line

Leading cost positions across business segments and regions
Capex projects further improves competitive cash cost position
North America Europe Asia Highlights

Cash cost Cash cost Cash cost
• Covestro is one of the low-cost
producers in MDI
MDI(a)
• Capex for ongoing MDI

expansion projects reflected in
leader
Chinese
Chinese
laggard
(landed
China)
North
North
Tarragona
Covestro
Uerdingen
Covestro
Asian
laggard
ME player
American
follower
American
laggard
leader
European
Covestro
European
laggard
ME player
(landed WE)
Covestro
Baytown
Covestro
Caojing
Brunsbuettel
significant cash cost
improvements
• MDI industry with relatively flat
cost curves reflected by cash
cost advantage of ~20%
TDI(a)
between the best and the

average of least competitive 5
laggard
Asian
Chinese
follower
(landed
China)
Chinese
laggard
ME player
North
American
follower
Covestro
Dormagen
European
European
laggard
ME player
(landed WE)
Covestro
Baytown
Covestro
Caojing
follower
plants
• Covestro is the global cost
leader in TDI and PCS
• Covestro cash cost advantage
of ~50% in TDI and ~30% in
PCS(b)
PCS compared to the average

of least competitive 5 plants
Covestro
Covestro
Uerdingen
Asian
laggard
North
American
follower
North
American
laggard
Map Ta Phut
European
follower
European
laggard
Asian
follower
ME player
(landed WE)
(landed China)
Covestro
Baytown
Covestro
Caojing
ME player
Cash cost improvements based on debottlenecking projects
Notes: (a) Cost of production based on total raw material costs less co-product credits, variable and fixed conversion costs at 100% utilization based
9 CMD 2018 │ Financial Performance on nameplate capacity for FY 2017
(b) FY2017 Cash cost ex gate, 82% utilization rate for all plants based on nameplate capacity. Integrated players are shown without any margins
for BPA, phenol, acetone, etc.
Capex with high ROCE
Mid-term debottlenecking capex and preparation of world-scale investment
Covestro capex(a) development 2006-2021e Highlights 2018-2021e

in € million % Capex as % of D&A
Disciplined decision process
149% 178% 165% 84% 88% 99% 95% 84% 101% 69% 61% 83% >100% >100% >100% >100%
• Financial fit (ROCE, NPV, POT(b))
• Prioritization with focus on value creation
upper end
Maintenance capex at €250-300 p.a.
• Risk assessment
• Financial impact from project delay
889
831 Debottlenecking capex
753
• Accompany industry growth by adding
650-700
633 612 capacity through debottlenecking projects
574 583
512 505 509 518 • Capex with superior ROCE
419 Additional capex creates significant value
• New growth investment into world-scale
plants on existing sites
• Capex with high ROCE
• Spending depends on projects and timing
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e 2020e 2021e
Maintenance capex Debottlenecking capex Additional capex into world-scale assets
10 CMD 2018 │ Financial Performance Notes: (a) Cash-relevant capex, prior to initial application of new accounting standard IFRS 16 Leases, effective January 1st, 2019
(b) POT: pay-off time
~4%
core volume growth ~€370m
€200-300m cost savings
volume leverage until 2019e
€650-700m
capex expected
in FY 2018

Successful execution of “PEP”
Profitability enhancement program delivered €233m until end of 2017
Cumulated savings achieved with “PEP”(a) Highlights

in € million
• Achieved savings of €233m until
~370
end of 2017
~310
~60 • Implemented projects expected to
deliver additional savings of
~80 ~€140m until end of 2019
233 • Difference between original target
39 of ~€420m and projected savings of
194
~€370m mainly due to decision to
~310
reverse the planned closure of
Tarragona site
141 233
194
53
53
2015 2016 2017 2018e 2019e
Cost savings per annum Cumulated cost savings
12 CMD 2018 │ Financial Performance Note: (a) PEP: Profitability Enhancement Program
Commitment to limit additional operational cost
Counterbalancing operational cost increases with efficiency programs
Cumulative additional operational costs(a) impacting EBITDA Highlights

in € million
• In 2016-2018e, higher operational
costs due to:
-142 ̶ Short-term incentive payments
-283 ̶ Capex related operational costs
-142 (e.g. engineering expertise)
-141
̶ Digitalization related costs
-283 ̶ Logistics (e.g. inter-regional
transportation)
̶ Inflation related costs (e.g.
salaries)
• In 2019e-2021e, increased efforts of

cost control limit operational cost
2016 2017 2018e 2019e 2020e 2021e
increases
Operational costs per annum Cumulative operational costs
13 CMD 2018 │ Financial Performance Note: (a) excluding one-time items

~4%
core volume growth ~€370m
€200-300m cost savings
volume leverage until 2019e
€650-700m >€5bn
capex expected FOCF expected
in FY 2018 2017-2019e

FOCF target of more than €2bn for FY 2018
Target for cumulative FOCF in 2017-2019e increased to more than €5bn
Highlights
FOCF 313 +208% 964 +42% 1,367 +35% 1,843 >2,000
in € million
• Increase of previous target of €5bn
for cumulative FOCF in 2017-2019e
to more than €5bn
• Sustainable high EBITDA to FOCF
conversion rate
Around
previous • Working capital to sales ratio in the
3,435 year‘s target range of 15-17%, with limited
level
2,014 expected impact on FY 2018
1,641
• Capex of €650m to €700m up Y/Y
1,161 115 25 slightly up versus previous guidance
44 133 165
in order to secure production
-39 -222 -419 -475
-612 -157 -509 reliability
-418 -518
-84 -194 • Tax rate expected at 25-27% for FY
-510 2018
-89
2014 2015 2016 2017 2018e
Adj. EBITDA Special items Working Capital Capex Income taxes Other effects

Total net debt reduction of more than €2bn
Focus on solid investment grade rating
Total net debt – from end of 2015 to Q1 2018 Highlights

in € million
3,673 • Total net debt to EBITDA ratio(a)
reduced to 0.4x end of Q1 2018
• Mid-term target of 1.5x achieved
earlier than previously assumed,
2,211 driven by strong cash flow
generation
• Strong decrease of net financial
-3,574
debt of more than €2bn to €187m
531 1,480
187 • Provisions for pensions decreased 1,209
28
to €1,293m due to CTA funding of
Provisions
257 for
€700m Pensions
1,462 417
1,293 • Equity ratio further improved to 50%
148
• Long-term commitment to a solid
investment grade rating
31.12.2015 FOCF Interest Dividends Share Others Changes in 31.03.2018 • End of 2017, credit rating outlook
buy-back provisions(b) lifted from stable to positive(c)
Net Financial Debt Provisions for Pensions(b)
16 CMD 2018 │ Financial Performance Notes: (a) Method of calculation: Total net debt (net financial debt plus pension provisions) on 31.03.2018 divided by EBITDA of last four quarters
(b) Including CTA funding of €450m in Q4 2016 and €250m in Q4 2017
(c) Credit rating “Baa2 with a positive outlook” by Moody’s
~4%
core volume growth ~€370m €
€200-300m cost savings Use of free cash
volume leverage until 2019e focused on
shareholder
value
€650-700m >€5bn
in FY 2018 2017-2019e

Use of free cash with focus on shareholder value
Decision for cash return to shareholders or portfolio based on best value creation
Dividend policy Return to shareholders Portfolio
€
€
• Progressive dividend policy: increase or • Policy to return excess cash either as • Disciplined & focused approach
keep at least stable share buy-back or special dividend • Acquisitions with focus on high margin
• FY 2017 dividend of €2.20 per share, • Share buy-back for up to in €1.5bn(a) and differentiated business areas
63% above prior year execution, with completion targeted by • Ongoing portfolio optimization including
• Total payout amount of €436m mid 2019 evaluation of potential disposals
18 CMD 2018 │ Financial Performance Note: (a) either up to €1.5bn or up to 10% of stock capital, whichever is reached first
Disciplined M&A approach
Clear strategic direction, defined process and strict financial criteria
Multiple criteria scorecard

• Positive NPV based on ramp-up of risk-adjusted synergies
Disciplined
• ROCE after synergies above WACC
financial impact
• Positive contribution to FOCF through the cycle
Portfolio
evaluation
• Maintain credit rating
• Focus on further upgrading internal M&A capabilities

“Walk, run, fly”
• Limit risks on post-merger integration
• Disciplined & focused approach

• Acquisitions with focus on high
• High revenue share in industries of the future
margin and differentiated business • Contributing to sustainable development goals
Strategic fit
areas • Growth rate above GDP
• Ongoing portfolio optimization • Increasing resilience
including evaluation of potential
disposals
• Cultural fit
Operational fit
• Limited need for restructuring

Well on track
Updated 2018 guidance on FOCF and capex
FY 2017 Guidance FY 2018
Core Volume Growth +3.4% Low- to mid-single-digit percentage increase Y/Y
FOCF €1,843m >€2bn
ROCE 33.4% Approaching previous year’s level
Additional financial expectations FY 2017 Guidance FY 2018
EBITDA FY €3,435m Around previous year’s level
EBITDA Q2 Q2 2017: €848m Above previous year’s level
D&A €627m €600-620m
Financial results €-150m €-100 to -120m
Effective tax rate 24.1% 25-27%
Capex €518m €650-700m
20 CMD 2018 │ Financial Performance Note: Basic assumptions FY 2018: Exchange rate of EUR/USD ~1.20 and a similar macroeconomic environment as in 2017
~4%
core volume growth ~€370m €
€200-300m cost savings Use of free cash
volume leverage until 2019e focused on
shareholder
value
€650-700m >€5bn
in FY 2018 2017-2019e

Polyurethanes (PUR)
Daniel Meyer
June 28, 2018
covestro.com CMD 2018 │ PUR

PUR key investment highlights
Global leader in a growth industry
Attractive industry growth and outlook

based on robust structural demand drivers
Volume growth supported by mid-term debottlenecking

and ongoing evaluation of investment options to capture long-term market growth
Global #1 producer of PU
with leading and defendable industry positions
Cost leadership in TDI and competitive cost positions in MDI and polyols
due to competitive process technologies, integrated production model and leading scale assets
Strong cash generation

and target to achieve positive FOCF in any year across the cycle
1 CMD 2018 │ PUR

PUR at a glance
Inventor of and leader in polyurethanes
#1 €7.4bn 29.5% 52%

PU producer globally(a) Sales EBITDA margin of total Covestro
2017(b) 2017(b) sales 2017(b)
• Inventor and producer of polyurethane raw materials and

formulations mainly for rigid and flexible foams(c) Cold Chain Comfort
• Broad portfolio spanning MDI and TDI (isocyanates) and e.g. refrigerator e.g. furniture upholstery
polyether polyols
• Competitive integration from key feedstock chlorine, aniline Construction Automotive
and propylene oxide to formulations e.g. metal panel e.g. instrument panel
• Global production platform comprising 18 facilities located in
Europe, USA and Asia(d) Cost leadership Sustainability
• Total production capacity of ~3.5 million tons globally e.g. process e.g. CO2-based
technology polyether polyols
• Solid cash conversion: €1.1bn FOCF from €2.2bn EBITDA
Notes: (a) Based on total combined nameplate capacity for MDI, TDI and polyether polyols at year end 2017 as per Covestro estimates
(b) Adjusted prior-year figures to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to the Coatings, Adhesives,
2 CMD 2018 │ PUR Specialties segment as of January 1, 2018
(c) As well as integral foam, semi rigid foam, RIM, TPU and CASE (Coatings, Adhesives, Sealants and Elastomers) applications
(d) Includes all MDI, TDI and polyether polyols facilities that partially reside at one site; feedstock and systems houses are excluded
PU industry demand and growth drivers
PU industry expected to grow ~5% annually until 2022
Global PU industry(a) Macro trend Impact on industries Covestro solution example

Demand ('000kt)
CAGR in % cardyon® CO2-based polyols
Resource Increasing focus for sustainable
Closing carbon cycle Bio-aniline (Bio-based MDI)
depletion solutions Infusion technology for wind
~5%
4.6% GDP ~3%

New industry regulations on efficiency Baytherm® Microcell (high-
GDP 2.8% Affordable appliance &
21.3 Urbanization Material for comfort adapted to higher efficient microcellular foam)
comfort Bed in box
standard of living
16.9
Population Increasing need for more intelligently Energy-efficient insulation
Enhanced insulation
13.5 growth insulated buildings based on Desmodur®
Baypreg® composite material

Material for lightweight vehicles and
for load floor
Mobility enhanced consumer driving Smart mobility
Baynat® headliners with
experience improved acoustic
BayCap® digital production

Digital Unleash the power of artificial
Intelligent solutions optimization and formulation
revolution intelligence to improve efficiency support
2012 2017 2022e
3 CMD 2018 │ PUR Notes: (a) Global PU market comprises combined MDI, TDI and polyether polyols industry demands as per Covestro estimates
Source: IHS, UN, OECD, IPCC
PUR volume growth
Core volume growth of 5.3% CAGR in 2015-2017
PUR sales split by end-markets PUR volumes split by business PUR sales split by regions
% of 2017 sales % of 2017 core volumes % of 2017 sales
Core volume growth, CAGR 2015-2017 Core volume growth, CAGR 2015-2017 Core volume growth, CAGR 2015-2017
TDI
Diverse industries Comfort/ APAC
(incl. chemicals) furniture Vol. +7% Vol. +10%
~40% ~20%
Vol. +10% Vol. +5%
29% EMLA
31% 32%
Vol. +3%
43%
MDI
Vol. +8%
Appliances 8%
Vol. +11%
12% 20% ~40% Polyether
NAFTA 25%
polyols
Automotive Construction Vol. +4%
Vol. +2%
Vol. +1% Vol. +3%
Growth driven by several industries Growth driven by MDI and TDI Growth driven by APAC
4 CMD 2018 │ PUR Notes: Based on Covestro Annual Report 2017; EMLA = Europe, Middle East Africa, Latin America; NAFTA = USA, Canada, Mexico; APAC = Asia, Pacific
Adjusted prior-year figures to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to the Coatings, Adhesives,
PUR competitive landscape
Global #1 with full scope advantage and ability to shape the industry
Competitive position of key PU players in 2017 Top 5 PU competitors by name plate capacity
in mt
Global 4 2017
Covestro
BASF 3 PET
PET
2 PET
Geographic footprint
TDI TDI TDI

Huntsman PET
PET
1 MDI
DOW/Sadara MDI MDI
MDI
MDI
0
Covestro BASF DOW/Sadara Wanhua Huntsman
Shell(b) Wanhua
MCNS 4 2022e
Bluestar PET PET
3 PET
Dahua Several additional small
Tosoh TDI
local PU producers TDI PET
Regional 2 TDI
Hanwa PET
1 MDI
Limited PU chemistry scope(a) Full spectrum MDI MDI
MDI
MDI
Size of bubble represents total MDI, TDI and polyether 0
polyols nameplate capacity Covestro BASF DOW/Sadara Wanhua Huntsman
5 CMD 2018 │ PUR Notes: (a) Excluding CASE - Coatings, Adhesives, Sealants and Elastomers
(b) Including JV
Source: Covestro estimates; nameplate capacities based on year end figures
PUR margin resilience
Polyether polyols demonstrate inherently stable margins
Resilience of polyether polyols business confirmed in 2017

Resilient
businesses CAS Polyols
2005 – 2017 Spreads
from around 800US$/t to 1,000US$/t
MDI
PCS resilient
resilient
MDI
PCS
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Others TDI
Global polyols price(a) Global propylene price(a)
• Non-integrated polyether polyols producers • Resilient industry margins over the last decade reflective of overall Covestro
with limited competitiveness polyether polyols profitability
• Single capacity addition with little influence • Spreads not materially impacted by high volatility of propylene prices, particularly
on supply and demand dynamics during the financial crisis
• Distinct entry requirements for new players, • Propylene oxide supply and demand dynamics create local pricing opportunities
e.g. capex and technology in the short term
6 CMD 2018 │ PUR Notes: (a) The global average polyols / propylene prices have been calculated based on the polyols / propylene prices in Europe,
US and China and weighting this average against the respective demand in those regions
PUR margin resilience
Resilient portion of MDI business accounts for ~25% of sales
Sales by segments Resilient MDI applications(b)

• Resilient share of MDI sales has ~20% higher gross margin
Resilient (2006-2017 average)
businesses CAS(a) Polyols
• Shift of elastomers business from MDI / PUR to CAS lowered resilient
part of MDI by ~5%-points to ~25% of total MDI sales
~25% of
MDI sales
MDI(a)
1 resilient Large-scale innovation
PCS
resilient
• Focus on three large-scale innovation hubs in Pittsburgh, Leverkusen
and Shanghai
MDI ̶ Formulation know-how and tailor-made systems
PCS ̶ Full scope of application development
̶ Cost-efficient business structures
Others TDI
• Centralized systems hubs in Europe and North America benefit from
1 Joint sales of polyols and MDI Specialty or downstream products economies of scale and cost-efficient feed from world-scale MDI and
e.g. CASE(c), automotive, construction, appliance e.g. selected MDI grades (pre-polymers, polyether polyols assets
blends, monomeric)
• Systems business in Middle East and APAC handled by local system
Formulations as market access Strong interaction with customers houses
requirement along value chain
e.g. automotive, appliances joint projects for e.g. window frames, wind mills
7 CMD 2018 │ PUR Notes: (a) Adjusted prior-year figures to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to the Coatings, Adhesives,
(b) Resilience measured as standard deviation of gross margin vs average portfolio
(c) CASE: Coatings, adhesives, sealants and elastomers
PUR R&D highlights 2017
Market-driven innovation as key value driver
125 Mio € 172 ~80% 90

R&D spend official approvals for of R&D spend going into patent
product launches product innovation applications
R&D project examples
Innovative technology
Digital technologies enable Bio-based aniline:
40% smaller cells allow Replacing epoxy resins enables use of up to
new ways of production biomass used as
up to 10% better insulation: by PU resins in wind 20% CO2 as feedstock
optimization by Covestro alternative raw
BAYTHERM® Microcell turbine rotor blades in polyether polyols
customers material to benzene production
8 CMD 2018 │ PUR

Polyurethanes
(PUR)
MDI
TDI
Polyether polyols

MDI at a glance
Leading global player with growth ~2pp above GDP
#3 1,450kt ~40% 6
MDI producer globally(a) Capacity of PUR core volumes Production facilities
2017(a) 2017 globally(b)
• Leading supplier in all key regions for MDI consuming industries

• Attractive industry growth of ~2pp above GDP supports stable industry utilization
and margin outlook
• Covestro to grow volumes in line with industry growth supported by debottlenecking
• World-scale integrated production facilities support competitive cost position
• Proven track record of cost discipline with asset restructuring potential in Europe
to deliver further efficiency upsides
10 CMD 2018 │ PUR Notes: (a) Nameplate capacity based at year end 2017 as per Covestro estimates
MDI industry demand
Diverse end-markets in all regions support robust growth
MDI demand by application CAGR 2017 – 2022e Underlying regional growth(a)

Demand ('000kt)
CAGR in % Global ~5%
APAC ~6%
~5% 8.6 CASE(b) 4% EMEA ~4-5%
GDP ~3%
0.8 NAFTA ~5%
5.5% Apparel 7% LATAM ~3%
6.7
1.3
GDP 2.8%
0.7 • Growing demand for insulation foam to
5.1 1.2 Appliance 4% comply with regional energy efficiency
0.9
directives, particularly in developed
0.5 economies
1.0
0.6 Construction 5% • Increase in global construction activity
2.7
0.9 ‒ broader macro upturn
2.1
‒ high growth in emerging economies
1.4 0.4 Automotive 4%
• Higher consumption of appliances
0.3 0.3 (refrigerators)
2.2 Diverse 4% • Steady GDP-driven growth in other
1.5 1.7 industries applications, e.g. CASE(b), textiles and
footwear
2012 2017 2022e
11 CMD 2018 │ PUR Notes: (a) Figures represent CAGR 2017-2022e

Source: IHS, Covestro estimates
MDI competitive landscape
Strong industry position supported by distinct entry requirements
Global capacity by producer Industry Covestro position

Others • Considerable investment required to develop world-
8% scale plants(a) • Well-invested, large- to world-scale asset base
Capital
‒ Around €1.5bn investment for full train • Economies of scale
intensity
‒ Approx. 5 years to full operation after completed • Total capacity 1,450kt(b)
Top 5 environmental impact assessment
92%
• Competitive process technology
2007 Process • State-of-the-art technology along the process chain of • Cost leader in NAFTA and advantageous position
technology high importance in Asia
• Efficiency improvements in EMLA underway
9%
Feedstock • Security of precursor supply essential • Favorable backward integration

integration • Backward integration as major value lever • Long-term supply contracts for important precursors
91%
2017
Technical • Systems demanding greater knowledge and expertise • Superior expertise and know-how in application
capabilities • Permits required to handle hazardous feedstock, development and customer insight
8% and expertise e.g. phosgene • Reputation cemented through 60+ years’ experience
Proximity to • Importance of proximity to customer markets • Diverse, global footprint

92% customer • Global asset base critical to support ambitions of global • Plants in all core regions
markets customer base • Ability to service all key areas of demand
2022e
12 CMD 2018 │ PUR Notes: (a) World-scale defined as MDI facility with capacity of 400-500kt p.a.
(b) Nameplate capacity based on year end 2017
MDI industry cost curves
Leading cost position in US, efficiency improvements in other regions underway
North America EMEA Asia

Cash cost(a) Cash cost(a) Cash cost(a)
A B C D E
F
F
COV BRU & TAR COV SHA

ongoing expansion ongoing expansion
projects projects
European Covestro Covestro Covestro European ME player

Covestro Baytown North American follower North American laggard leader Uerdingen Tarragona Brunsbuettel laggard (landed WE)
Chinese Covestro Chinese Asian laggard ME player
leader Caojing laggard (landed China)
A Covestro cost leadership through backward integration
B European leader with large and energy-efficient MDI capacity plus cost-efficient raw material supply
C Uerdingen more cost efficient relative to other Covestro facilities in Europe due to level of backward integration; expansion projects for BRU and TAR
D Chinese leader with very strong backward integration including energy supply
E Covestro ahead due to larger MDI train capacity and energy efficiency, further specific cost reduction through expansion projects
F Benefits from low energy and natural gas prices, suffers from high investment level and required costly HCl recycling via ODC(b) electrolysis (no
benefit from caustic soda by-product sales); plus estimated 90-140 $/t bulk freight plus 6.5% import duty to WE and China
13 CMD 2018 │ PUR Notes: (a) Cost of production based on total raw material costs less co-product credits, variable and fixed conversion costs at 100% utilization based
on nameplate capacity for FY 2017
(b) ODC: oxygen-depolarized cathode
MDI global operations
Covestro MDI operations increase long-term ROCE through debottlenecking
Brunsbuettel, Germany Covestro innovation centers

Covestro MDI facility
Leverkusen, Germany
Pittsburgh, PA, USA

Amagasaki, Japan
Tarragona, Spain
• Nameplate capacity: 200kt
Baytown, TX, USA • Start of production: 1988
• Economic expansion to
400kt p.a. in early 2019e
Niihama, Japan
Shanghai, China
Uerdingen, Germany
• Start of production: 1971
• Caojing, China
• Nameplate capacity: 330kt New chlorine plant by 2020e
• Start of production: 1974 • Expansion to 220kt p.a.
• Continuous investments into by 2022e
increased reliability • Nameplate capacity: 70kt
• Start of production:
MDI-1 1978, MDI-2 1995
• Covestro has 60% JV share
of Sumika Covestro
• Nameplate capacity: 200kt Urethane (SCU)
• Start of production: 1964 • Nameplate capacity: 490kt • 2010 shutdown of older
• Expansion in 2002 • Start of production: 2006 MDI train
• EMEA facility with focus on • Gradual debottlenecking to
specialties production 600kt by 2021e
14 CMD 2018 │ PUR Note: All current nameplate capacities based on year end 2017
MDI capex projects
Low specific investments due to established infrastructure and existing supply networks
Brunsbuettel
Germany Brunsbuettel expansion of 200kt p.a.
• Re-usage of idle TDI infrastructure and precursors enables economic doubling of MDI capacity to 400kt p.a.
• Leverage existing site infrastructure and share of precursors
• Low triple-digit Euro million investment, start-up expected in first half of 2019e
Caojing gradual debottlenecking

Caojing • World-scale plant with currently 490kt capacity to gradually reveal its full potential of 600kt p.a. by 2021e
China
• Mid-single digit Euro million investments backed by additional market demand
• Further dilute specific fixed costs
Tarragona debottlenecking of 50kt p.a.

• Competitive debottlenecking from 170kt to 220kt p.a. by 2022e
Tarragona • Investment of around €200m in own chlorine production by 2020e based on leading ODC(a) technology ensures a
Spain highly efficient, sustainable and independent supply
Various options for additional MDI growth under investigation

• New world-scale plant investments operational approx. 5 years after initiated environmental impact assessment
• Debottlenecking can be realized with approx. 3 years lead time
15 CMD 2018 │ PUR Notes: All current nameplate capacities based on year end 2017
(a) ODC: oxygen-depolarized cathode
Polyurethanes
(PUR)
MDI
TDI
Polyether polyols

TDI at a glance
Global leader in long-term growth industry
#1 750kt ~20% 3
TDI producer globally(a) Capacity of PUR core volumes Production facilities
2017(a) 2017 globally
• Globally leading producer of TDI with number one positions in all major regions
• Industry demand growth above GDP driven by all key end markets and regions,
particularly APAC
• TDI margins volatile and currently above sustainable level due to temporary
capacity constraints
• Superior cost position through backward integration, proprietary gas-phase
phosgenation technology and integrated, world-scale production assets
17 CMD 2018 │ PUR Notes: (a) Nameplate capacity based at year end 2017 as per Covestro estimates
TDI industry demand
Diverse end-markets across all regions support robust growth
TDI demand by application CAGR 2017 – 2022e Underlying regional growth(a)

Demand ('000kt)
CAGR in % Global ~4%
~4%
APAC ~5%
2.8
4% EMEA ~3%
GDP ~3% CASE(b)
0.4 NAFTA ~3%
2.8%
2.3
LATAM ~1%
GDP 2.8%
0.3
2.0
Wood/ 4% • Solid growth across all major
0.3 Furniture applications
• Higher consumption of mattresses and
2.1 furniture by emerging middle class in
developing economies
1.8 Automotive 2%
• Favorable substitution trends in
1.5 CASE(b) owing to relative advantages
vs. competing materials
Diverse
0.1 8%
0.2 0.2 industries
0.02 0.05 0.1
2012 2017 2022
18 CMD 2018 │ PUR Notes: (a) Figures represent CAGR 2017-2022e

Source: IHS, Covestro estimates
TDI competitive landscape
Strong industry position supported by distinct entry requirements

Others • World-scale plant(a) requires:
27% • 3 world-scale production facilities and total
Capital ‒ €0.8-1.1bn investment for full train capacity of 750kt
intensity ‒ Approx. 5 years to full operation after completed
Top 5 • Benefits from economies of scale
environmental impact assessment
73%
2007 • Advanced technology along the process chain • State-of-the-art gas-phase phosgenation (GPP)
Process important particularly in high cost locations technology leading to global cost leadership
technology
• Limited options for licensing ‒ highly cost efficient and high environmental standard
26%
Feedstock • Supply contracts as standard option • Long-term supply contracts for important precursors
74% integration • Backward integration advantageous • Favorable backward integration
2017 • World-class expertise and know-how in customer-

Technical • Permits required to handle hazardous feedstock, oriented application development
capabilities e.g. phosgene
• Proven reputation with 60+ years’ experience
and expertise • Track record and suitable infrastructure important
24% • Impeccable safety record
• Benefits for established global players

Proximity • Global footprint and customer insight
76% • Required to service large global companies
to markets • Facilities in all core regions
with diverse operations
2022e
19 CMD 2018 │ PUR Notes: (a) World-scale defined by company assessment as TDI facility with capacity of 250-300kt p.a
TDI industry cost curves
Global cost leadership by scale, integration and technology
North America EMEA Asia

A B D C D
Covestro Baytown North American follower Covestro European follower European laggard ME player Covestro Chinese ME player Chinese Asian laggard
Dormagen (landed WE) Caojing follower (landed China) laggard
A Covestro cost leadership through backward integration
B Covestro advantages from superior process technology
C Process technology advantages and larger TDI train capacity driving superior cost position for Covestro
D Benefits from low energy and natural gas prices, suffers from high investment level and required costly HCl recycling via ODC(b) electrolysis (no
benefit from caustic soda by-product sales); plus estimated 90-140 $/t bulk freight plus 6.5% import duty to WE and China
20 CMD 2018 │ PUR Note: (a) Cost of production based on total raw material costs less co-product credits, variable and fixed conversion costs at 100%
utilization based on nameplate capacity for FY 2017
(b) ODC: oxygen-depolarized cathode
TDI global operations
Leading production network by technology and global footprint
Covestro innovation centers

Covestro TDI facility
Leverkusen, Germany
Pittsburgh, PA, USA

Amagasaki, Japan
Dormagen, Germany
Caojing, China
Baytown, TX, USA
Shanghai, China

• Start up beginning 2015
• Technology used: Features
proprietary Covestro gas- • Nameplate capacity: 275kt
phase phosgenation • Start of production: 2011
• Nameplate capacity: 225kt • Cost leader resilient to new • Technology used: Features
• Start of production: 2000 capacity additions in EMEA proprietary Covestro gas-
• Technology used: Liquid- • Debottlenecking of +20kt to phase phosgenation
phase phosgenation 270kt in 2018e • Cost leader in APAC and
• Serves both US and non-US well-positioned to capture
markets strong demand in Asia
• Debottlenecking of +25kt to
275kt in 2017 completed
21 CMD 2018 │ PUR Notes: All nameplate capacities based on year end 2017
Polyurethanes
(PUR)
MDI
TDI
Polyether polyols

Polyether polyols at a glance
Leading position in polyether polyols as distinctive component
#2 1,330kt ~40% 9
Polyether polyols Capacity of PUR core volumes Production facilities
producer globally(a) 2017(a) 2017 globally
• Leading global supplier of polyether polyols with broad range of products and focus
on NAFTA and EMEA
• Resilient profitability and cash generation backed by stable historic and forecast
industry margins
• Key source of distinction and critical enabler in terms of providing market access
and driving product innovation in polyurethanes
• Sustainable cost position through backward integration into propylene oxide and
best-in-class process technology in polyether polyols
• Covestro polyether polyol growth limited in the short term, yet strategy remains to
grow in line with portfolio
23 CMD 2018 │ PUR Note: (a) Based on nameplate capacity 2017 at year end as per Covestro estimates
Role of polyether polyols in Covestro portfolio
Key enabler for innovation in core applications
Covestro production chain Polyether polyols reaction with isocyanates leads a broad range of applications
Rigid foam Average mix = Molecular ratio: 1 MDI to ~0.7 polyether polyols
~840kt
Propylene Polyether Building insulation Cold chain Automotive parts

Propylene • space and energy • affordable temperature • strong, durable and light
oxide polyols(a)
efficient preservation • noise and heat insulation
• flexible processing
1,330kt
by-product Flexible foam Average mix = Molecular ratio: 1 TDI to ~2 polyether polyols
styrene
~350kt
Purchased raw material Contracts & JV activities Covestro activities
Furniture Automotive parts Bedding

• durable and • padding for auto • design and comfort
supportive cushions seating driven mattress material
24 CMD 2018 │ PUR Notes: (a) Based on nameplate capacity at year end 2017
Polyether polyols competitive landscape
Competitive industry position based on PO backward integration

• PO production in USA and Europe and 9 polyether
Others Capital • World-scale 300kt p.a. propylene oxide / polyether polyol production sites in NAFTA, Europe and Asia
38% intensity polyols plant requires approx. €1bn investment • Cost benefits and secured access from JV with leading
Top 5 PO producer LyondellBasell
62%
• PO technology relatively complex with limited options • JV based on cost competitive PO/TBA and PO/SM
Process for licensing technologies of LyondellBasell
2007 technology • Polyether polyol technology available through own • Leading proprietary polyols technology position,
innovation or licensing licensor of IMPACT technology to major competitors
• Propylene backward integration for propylene oxide • Long-term supply contract for important precursors, e.g.
Feedstock production advantageous ethylene oxide
integration • PO backward integration for polyether polyols • Backward integration on propylene oxide through
54% 46% production advantageous LyondellBasell JV
• Leading position in long- and short-chain polyether
• Few players with broad product portfolio based on deep
Technical polyols as well as polymer polyols covering broad range
polyols chemistry know-how
2017 capabilities
• Handling of propylene oxide and ethylene oxide require
of applications
and expertise • World-class expertise in application development
high safety standards
providing innovative industry solutions
• Application know-how and competitive product offering
to support customer
42% •
58% Proximity • Global customers, e.g. in appliance, prefer global Global footprint of production assets and resources
to markets suppliers • Deep customer and market insights
• Low cost supply chain set-up requires regional
2022e production
25 CMD 2018 │ PUR Source: Covestro estimates

Polyether polyols competitive landscape
Global #2 producer with strong positions in NAFTA and EMEA
Polyether polyols industry capacity share by region in 2017(a) Top polyether polyols producers globally in 2017(a)
('000kt) ('000kt)
6.5
Covestro
#2 #2 >#10
position
7.0
2.8
~60
2.3 2.0
~10 other >95%
~15 players
other 76% 1.3
other 72% 0.9
players 0.8
players 0.6
Covestro 28% Covestro 24%

Covestro 1% (b) (b)
Dow Covestro Shell BASF Huntsman Others
Americas EMEA APAC
• Polyether polyols landscape comprising 4 major players; Covestro is #2 producer globally with strong positions in NAFTA and EMEA
• APAC is highly fragmented based on a large merchant propylene oxide market with > 25 producers
• Higher margins and distinct entry requirements for the business model of propylene oxide backward-integrated polyols vs. stand-alone
• Distinct entry requirements: capital intensity, propylene oxide access, advanced polyols process technology, R&D and technical infrastructure
26 CMD 2018 │ PUR Notes: (a) Based on nameplate capacity as of year end 2017
(b) including JVs
Polyether polyols operations
Global production network with proximity to propylene oxide supply
New Martinsville, USA Antwerp, Belgium Dormagen, Germany Niihama, Japan
Channelview, USA Pittsburgh, PA, USA Leverkusen, Germany Lin Yuang, Taiwan
Amagasaki, Japan
Shanghai, China
Santa Clara, Mexico South Charleston, USA Fos-sur-Mer, France
Covestro innovation centers

Covestro polyether polyols facility
27 CMD 2018 │ PUR

Joint venture with LyondellBasell
Competitive cost position through propylene oxide backward integration
LyondellBasell agreements
US propylene oxide joint venture
• Started in 2000
• Long-term off-take of propylene oxide from JV plants
EMEA propylene oxide joint venture
• 50 / 50 manufacturing JV for world-scale facility in Rotterdam
• Propylene oxide output used captively by Covestro as feedstock; sells styrene monomer in merchant market
Key benefits to Covestro

• Secure access of propylene oxide in Europe and US
• Producer cost economics vs. market price in a limited merchant market for propylene oxide
• Opportunity to explore debottlenecking options with LyondellBasell
• US propylene oxide JV not exposed to propylene oxide co-product volatility (TBA / MTBE or styrene monomer)
• Covestro responsible for certain styrene monomer sales from EMEA joint venture
28 CMD 2018 │ PUR

Polycarbonates (PCS)
Michelle Jou
June 28, 2018
covestro.com CMD 2018 │ PCS

PCS key investment highlights
Growth business with increasing product differentiation
Opportunity to outgrow the industry

taking shares for four consecutive years, outgrowing in high value-added applications
Increasing share of high-value, differentiated business

with more than 1,000 different PC grades with prices ranging from ~€2.0 to ~€15 per kg
Leading global player

with broadest range of applications
Well-invested, young and highly efficient global production network

allows cost-efficient and safe production as well as expansion through debottlenecking
Pushing boundaries through innovation

creates access to new applications and new product offerings
1 CMD 2018 │ PCS

PCS at a glance
Global leading producer of polycarbonates
#1 €3.7bn 22.8% 26%

PC producer globally(a) Sales EBITDA margin of total Covestro
2017 2017 sales 2017
• Global leader and inventor of polycarbonates

Mobility Mobility
• Offers products and solutions for a wide range of applications Exterior Charging station
• Integrated production processes along the value chain,
including wet sites (resins) and dry sites (compounded resins)
Electronics Healthcare
• Global platform with 5 production sites, 5 innovation centers, Robot housing Drug delivery
7 compounding centers and business unit headquarters in
Shanghai, China
Consumer
• Total production capacity of 1,480kt(a) electronics Electrical
Adapter LED street lamp
2 CMD 2018 │ PCS Notes: (a) Based on nameplate capacity at year end 2017 as per Covestro estimates
1. Polycarbonates industry demand and growth drivers
Macro trends support above GDP demand growth
Polycarbonates demand by application CAGR 2017 – 2022e Accelerated growth 2017-2022e

Demand ('000kt) CAGR in %
CAGR in %
APAC ~5%
~4% Electronics 4%
5.3 EMEA ~3%
GDP ~3%
0.7
3.3% Electrical 6% NAFTA ~3%
4.3
GDP 2.8%
0.6 1.0 Continuous upgrades, substitution and new
3.7
Automotive 6% application development; selected examples:
0.6 0.7 • Trend towards design and aesthetics
1.0 in devices
0.5
0.7 Construction 4% • New revolutionary technologies, e.g.
0.5 0.7 wearables, audio devices, AR and VR,
0.6 sensors, robotics, drones
0.5 • Electric vehicles and autonomous driving
Consumer(a) 5%
• Increasing healthcare access in emerging
0.9 1.4 1.7 markets
Optical -7% • Ageing population with longer life
0.6 Media expectancy requiring healthcare solutions
0.3 0.2
2012 2017 2022e
3 CMD 2018 │ PCS Notes: (a) Appliance, medical, packaging

Source: IHS; Covestro estimates
1. PCS volume growth
Strong core volume growth of 7.6% CAGR in 2015-2017
PCS sales split by end markets PCS sales split by regions

Covestro sales 2017 Covestro sales 2017
Core Volume Growth, CAGR 2015-2017 Core Volume Growth CAGR 2015-2017
Diverse
applications
Vol. +10% NAFTA
Mobility
Vol. +7% APAC
22% Vol. +13% 23%
Vol. +11%
34%
44%
Construction 16%
Vol. +6%
33%
28% Electrical / EMLA
Electronics Vol. +3%
Vol. +2%
incl. further reduction of ODS business
Growth driven by mobility and diverse applications Growth driven by APAC
4 CMD 2018 │ PCS Notes: Based on Covestro Annual Report 2017; EMLA = Europe, Middle East Africa, Latin America; NAFTA = USA, Canada, Mexico; APAC = Asia, Pacific
2. Polycarbonates in the world of plastics
Attractively positioned as engineering thermoplastics
Triangle of thermoplastics by structure, capabilities and price Highlights

Capability by temperature index (TI)
• Plastics are clustered by some basic properties that define
application areas, price and market volumes
High Performance • PC is clearly positioned as engineering plastic that serves
Polymers PI > 10,000 EUR/ton
TI > 150 °C
applications with specific mechanical and temperature
PAI PEEK
Apec® requirements
Co-PC PEI FP
LCP > 4,000 EUR/ton
• If applicable, PC typically competes with other amorphous resins
PES
PSU PPS like PMMA, ABS (low end) or PEI (high end)
COC/COP PPA PA 46
150 °C
PPE mod. PET (Injection)
• Covestro brands its PC as
Engineering
Thermoplastics
PC PC+PET / PBT • Covestro blends PC with other resins to deliver tailored
PC+ ABS / ASA performances and to broaden the range of applications:
TI = 100 - 150 °C > 2,000 EUR/ton
PMMA PBT
PA 11 PA 12 POM ̶ PC plus PET or PBT
ABS, SAN, ASA PA 6 PA 66
100 °C
̶ PC plus ABS or ASA
Standard PP
Plastics EPS PS HDPE • In the ‘High Performance Polymers’ range, Covestro offers a
PET (Bottle grade) PVC LDPE LLDPE special high-heat co-polycarbonate
amorphous structure semi-crystalline structure

• Further specialty PC polymers including co-polymers in
development
5 CMD 2018 │ PCS Source: PlasticsEurope Market Research Group (PEMRG) and Covestro estimate
2. Polycarbonates as engineering thermoplastics
Serving numerous industries with a unique combination of properties
Polycarbonates (PC) Key properties Key applications
• IT equipment
• Impact resistant • Automotive interior • Housing for mobile
and exterior panels devices and consumer
Resins • Heat resistant electronics
• Bodywork parts
• Transparent • Lighting systems
• Chargers
• Glazing • Switchbox and other

electrical systems
• Outer door panels
• Diffusion panel of
• High dimensional stability • Radiator grills LCD monitors
Compounded • LED parts
Resins • High flame retardancy
• Good aesthetics • Medical devices
• Robotics • Windows
• Personal safety, • Conservatories
e.g. helmets,
• High stiffness headgear, eyewear • Roof structures
Composites • Packaging, e.g. water • Partition walls
(CFRTP) • Light weight bottles, pitchers
• High-tech look and feel
6 CMD 2018 │ PCS Notes: CFRTP: Continuous Fiber Reinforced Thermoplastics Composites
2. PCS compounding
Increasing demand for value-enhanced PC grades
Share of compounded resins Concept of compounding

Covestro PCS sales split by product group
Internally sourced Externally sourced
Compounded ABS or ASA e.g. to improve

Blend toughness at low temperature
resins
partner PBT or PET e.g. to improve
35%
Compounding chemical resistance and flow
Resins
65% Fillers and e.g. glass fiber to provide high
PC resins stiffness
reinforcement
FY 2010
e.g. UV / light stabilizers to
Processor Functional improve long-term stability
additives e.g. flame retardants
Compounded
resins
Application e.g. colors to provide optical
46% Colorants &
special effects effects
Resins
54%
Compounding of PC resins creates formulations with tailored
FY 2017 property profiles and significant added value for customers
7 CMD 2018 │ PCS Notes: Majority of compounded resins are part of the resilient portion of PCS sales
2. PCS margin resilience
Benefits from global market access, innovation capabilities and high-quality product portfolio
Resilient portion of PCS volumes at ~55% in 2017(a) Goal: grow resilient portion of PCS volumes to ~65% long-term
High margin(b)
Resilient volumes increased from ~40% in FY 2011 to

~55% in FY 2017
• Focus on high-value and high-growth industry applications
• Greater technical requirements and longer lifecycles
• Comprehensive innovation capabilities and technical
services are key
• Mobility, electrical and electronics as main drivers
Focus to further grow in resilient end markets

• Healthcare as additional future key driver
• High differentiation potential
Low margin
• Opportunistically serve low-requirement applications, exit

sheet operations
High Volatility Low Volatility(c)

• Broaden portfolio toward higher margins and earnings resilience
• Distinct entry requirements in resilient portion of PCS portfolio for
Growth applications Serve opportunistically
potential new industry players
Shift to resilience Resilient business, defined as combination
of high margin and low volatility
8 CMD 2018 │ PCS Notes: (a) Bubble size represents PC volumes in one specific application in 2017
(b) Contribution margin per kg
(c) Volatility measured as standard deviation of contribution margin
2. PCS product portfolio
Covestro targets to outgrow PC industry in differentiated business
Development of resilient portion of PCS volumes Covestro highlights

Covestro sales volumes in kt
~ flat Product portfolio improvement
Covestro utilization
+15pp • Capacity growth and increasing share of resilient business
result in significantly higher volumes in differentiated, high-requirement
>4% applications
Standard business
CAGR
>200kt • Structural improvement of average contribution margin
8% additional volumes sold
in 2022e vs 2013 Higher asset utilization
CAGR
• Volume leverage through significant improvement of capacity
~10%
Resilient business utilization by ~15 percentage points
CAGR
>60% >600kt • Significantly higher output from unchanged number of
9% ~55% additional volumes sold primary production sites
<50% in 2022e vs 2013
CAGR
2013 2017 2022e
1,270kt 1,480kt >1,700kt Covestro capacity(a)
No. of primary
5 5 5 PC production sites
9 CMD 2018 │ PCS Notes: (a) Nameplate capacity for PC resins at year end
3. PCS competitive environment
Global leader with growing share of business generated with global customers
Positions in the industry 2017(a) Covestro advantage of broad play
Broad
range • Covestro and SABIC are the only true global players –
important to serve global customers in e.g.
Covestro
electrical/electronics and automotive
SABIC
• Reduced exposure to cyclicality of single customer industries
• Higher flexibility in portfolio management
applications spectrum
• Optimized risk distribution

Major • Optimized asset utilization
Breadth of
compounders Mitsubishi
Lotte Key changes by 2022e
Teijin
• No significant change among top 5 industry leaders expected
Trinseo
Multiple • New potential industry players expected mainly in China,
Chinese
industry likely to increase competition in local markets with narrow
entrants application spectrum
Narrow • Number of Chinese industry entrants may increase from
range
two in 2017 to announced ~10 by 2022e
Local Geographic reach / Global • Potentially one Chinese industry entrant with long-term
footprint footprint footprint ambition to enter high-requirement applications
10 CMD 2018 │ PCS Notes: (a) Bubbles represent 2017 global nameplate capacity, only largest competitors and competitor groups included
Source: Covestro estimate
3. PCS competitive positioning
1000+ grades position Covestro with broadest product offering
Breadth of PC product offering by Covestro and key competitors across end markets(a) Highlights
Covestro SABIC MEP Teijin Lotte Trinseo Kingfa(b) Zhetie(c) • Covestro has broadest
(D) (KSA) (JP) (JP) (KR) (US) (PRC) (PRC) product portfolio and
continues to expand,
Mobility especially in the resilient part
• PC is an innovation-driven
Healthcare
industry and Covestro has
Electrical largest innovation budget
in industry(a)
Electronics • Differentiation increases
earnings resilience and
Appliances independence of single
customer industry cycles
Consumer products • Differentiation lowers
exposure to new potential
Construction industry players with often
limited product offerings of
Optical data storage few low-end grades
Water bottles
Broad offerings Medium offering Limited to No offering
11 CMD 2018 │ PCS Notes: (a) Covestro estimate

(b) Compounder in PRC
(c) 2015 industry entrant in PRC
4. PCS value chain
Selective backward and forward integration captures best value
Raw Polymer
materials Compounding Processor Application
resin
Acetone Covestro activities • Optimized value creation in line with

Injection requirements of application
BPA
molding
Phenol • Polymer resin business
Compounding
LPC
(a)
(a)  Standard mass applications
Composites
 Long application lifecycles
Chlorine DPC SPC (b)
(b)
 High optical purity
Phosgene  Uncolored
Polycarbonates Extrusion
Carbon
e.g. sheets / film
monoxide
• Compounded resin business
 Tailored property profiles
Phenol / Acetone  Value-added applications
• Easy to transport  Dynamic application lifecycles
• Dedicated production lines for phenol, by-product acetone  Special colors and optical effects
• Long and highly liquid merchant market
Chlorine / Carbon monoxide

• Preferably on site due to safety, transport logistics and economies of scale
• Used by multiple on-site consumers, ability to leverage economies of scale
• No merchant market
12 CMD 2018 │ PCS Notes: Indicative product flow

(a) LPC: Interface process
(b) SPC: Melt process
4. PCS regional industry cost curves
Leading cost positions in key regions
North America Europe Asia

A E B C D E
Covestro Baytown North American follower North American laggard ME player Covestro European follower European laggard Covestro Map Asian follower Covestro ME player Asian laggard
(landed WE) Uerdingen Ta Phut Caojing (landed China)
A Covestro is cost leader in North America mainly based on backward integration and technology
B Covestro is cost leader in Europe-based production, mainly due to backward integration and technology
C Covestro is cost leader in Asia mainly based on scale, backward integration and technology
D Covestro is cost leader in China mainly based on scale, backward integration and technology
E Benefits from feedstock integration as well as highly advantageous utility costs, suffers from bulk freight plus 6.5% import duty to WE and China
13 CMD 2018 │ PCS Notes: (a) FY2017 cash cost ex gate, 82% utilization rate for all plants based on nameplate capacity. Integrated players are shown without margin
contributions from sales of BPA, phenol, acetone, etc.
4. PCS in China
Caojing production complex to become scale and cost leader in industry
Covestro future cost advantage versus Chinese competitors

Cash cost(a)
Cost index = 100
Nameplate Currently 400kt with planned expansions to 600kt, coming on

capacity stream in several stages from 2018 to 2022 through
debottlenecking existing production lines
Differentiating  Economies of scale:
factors ̶ Currently the only PC plant in China operating single
lines with 100kt or more,
̶ Becoming world’s largest PC site after debottlenecking
Covestro Caojing China China China China China
 Benefit from raw material integration:
after expansion new existing new new laggard
Fully integrated into BPA and partially into chlorine entrants 1 follower entrants 2 entrants 3
 Process technology advantage
̶ Benefit from lower cost melt technology, compared to Nameplate capacities
after 2022e(a)
interfacial technology
̶ Solvent-free product for key industries
14 CMD 2018 │ PCS Notes: (a) Cash cost after 2022e: Covestro Caojing capacity expansion to 600kt p.a. completed, 82% utilization rate for all plants based on
nameplate capacity. Integrated players are shown without margin contributions from sales of BPA, phenol, acetone, etc.
4. PCS global operations
Reach and customer access is key competitive advantage
NAFTA Office Primary production plants

Amagasaki, JP
Seoul,KOR • Production of polycarbonate resin for either external sales or internal
feedstock for compounding and sheet plants(a)
Greater Noida, IND Global PCS
Shanghai, Headquarters • Nameplate capacity as of year end 2017: Covestro 1,480kt, including
Pittsburgh, PA CHN APAC Office Baytown (USA) 230kt, Antwerp (BE) 240kt, Uerdingen (D) 300kt, Map Ta
Guangzhou, CHN Phut (THA) 310kt and Caojing (PRC) 400kt
Newark, OH
Sheffield, MA Map Ta Phut, THA
Baytown, TX
Compounding plants
• Refinement of polycarbonate resin through blending with other polymers or

addition of colorants, fillers or other functional additives
• Color matching, technical service and small-scale production capabilities
Antwerp, BEL
Uerdingen, GER
EMEA & LATAM Leverkusen, GER
Office Tielt, BEL Markt Bibart, GER 5 PC resin production sites Composites
Filago, ITA PC sheet operations(a)
7 compounding plants
Nera Montoro, ITA 5 Innovation centers • Production and sales of Continuous Fiber Reinforced Thermoplastics
Business development centers (CFRTP) as tapes and sheets for further processing by customers
Process research centers
CFTRP manufacturing
15 CMD 2018 │ PCS Notes: (a) Covestro to sell its PC sheets outlet in the USA, closing expected to be completed in the third quarter of 2018
5. PCS R&D highlights 2017
Market-driven innovation as key value driver
€74m 22% 50 39
R&D spend of PCS sales with new new grades, thereof around patent
products not older than 5 years 90% compounding grades applications
High-end materials
Seamless glass-like appearance Flame retardant materials for
Thermoconductive heat sink for connected devices
exterior parts – sensor transparent electric vehicle battery packing
for medical drug delivery
16 CMD 2018 │ PCS

5. PCS innovation example
Material, application and production know-how drive market access and development
Example of customer product development lifecycle
Definition of Material and concept New application Scale up and customer

customer requirements development technologies production
Customer needs
• Distinctive and innovative • Specialized material solutions • Optimized and highly integrated • Global competitive offerings
automotive interior design providing function integration and manufacturing process • Comprehensive and competent
safety product support
Covestro solution
 High-end interior solutions with best-in-  Innovative polycarbonate grades, e.g.  Best-in-class expertise in  First choice development partner for
class product and technology portfolio for infotainment display solutions thermoplastics and processing leading OEM, component suppliers
 Creative concepts based on profound  New designs for lifestyle colors, technologies and design houses
understanding of materials and surface finish and soft touch and feel  Reduction of cost and complexity  Cutting-edge material and process
applications  Ductile materials for crash safety innovation
 Support along the whole value chain  Global manufacturing, supply and
support network
17 CMD 2018 │ PCS

5. Continuous Fiber Reinforced Thermoplastics Composites
Innovative composite material provides potential for future growth
Example of customer product development lifecycle Example of customer product development lifecycle
Health
Automotive
The world needs light-weight materials for next- Fashion & A diverse pipeline portfolio of commercial projects
Sportswear
generation applications offering powerful with some of the largest consumer brands in the
sustainability opportunities world
Electronics
Commercial scale production inaugurated in

Covestro combines continuous fibers (e.g.
March 2018.
carbon) with thermoplastic resins (e.g.
Further scale-up planned based on market
polycarbonate, TPU) to offer tapes and sheets
success
Strong resonance with industry’s needs: Haier,

Strong, light and aesthetically attractive product
the world’s largest appliance manufacturer, uses
with fast cycle times compared to thermoset
our CFRTP materials for its Casarte premium air
composites
conditioner housing
18 CMD 2018 │ PCS

Coatings, Adhesives,
Specialties (CAS)
Michael Friede
June 28, 2018
covestro.com CMD 2018 │ CAS

CAS key investment highlights
Global industry leader with high and resilient profitability
Above GDP growth

based on solid demand from diverse customer industries
High-end solutions for added-value materials

support high margin resilience
Global leading and defendable position

in industries with distinct entry requirements
High level of backward integration

and leading, proprietary technologies provide sustainable competitive cost advantage
External growth opportunities

focused on value-creating, differentiated business areas
1 CMD 2018 │ CAS

CAS at a glance
Enabling high performance
#1 €2.3bn 20.9% 16%

Producer of aliphatic Sales EBITDA margin of total Covestro sales
isocyanates and PUD(a) 2017(b) 2017(b) 2017(b)
• Global leading supplier of high-performance materials to the coatings and

adhesives industry and other high-growth specialties
Ingredients for
• Inventor of and technology leader in isocyanate derivatives for coatings, adhesives,
sealants and specialties
surface coatings
• 2,700+ products based primarily on six monomers, serving 10+ high-end industries
and 5,000+ customers Ingredients for
• Product pricing driven by added value to end-customers as CAS materials are
adhesives and
critical to the final product performance but form a small part of the overall cost sealants
• Market-driven innovation in close collaboration with all partners in the value chain,
developing customized solutions for specific problems Ingredients for
• Efficient production processes benefitting from low-cost technology and high level specialties
of backward integration
• High margin resilience and strong cash flows
2 CMD 2018 │ CAS Notes: (a) Based on total aliphatic isocyanates volume in 2017 relative to competitors as per Covestro estimates and based on total
polyurethane dispersions (PUD) volume in 2017 relative to competitors as per Covestro estimates
(b) All figures adjusted to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to Coatings,
Adhesives, Specialties segment as of January 1, 2018
CAS above GDP volume growth
Adjusted core volume growth of 3.7% CAGR in 2015-2017(a)
CAS sales split by industry groups CAS sales split by businesses CAS sales split by regions
Covestro sales share FY 2017(a) Covestro sales share FY 2017(a), rounded Covestro sales share FY 2017(a)
Core volume growth, CAGR 2015-2017 Core volume growth, CAGR 2015-2017 Core volume growth, CAGR 2015-2017
Diverse High Growth

Specialties
Vol. +7%
Automotive & Elastomers
transportation Vol. +8% APAC
5%
Diverse Vol. -3% 10% Vol. +8%
23%
industries
31% Specialty Films 31%
Vol. +5% Coatings
Vol. +6% 10% Vol. -1%
45% EMLA
47%
Vol. +3%
Construction &
15% engineering Thermoplastic 10%
Packaging 3% Polyurethanes
Vol. +3%
Vol. +14% 4% Vol. +13%
Textiles, 7% 9% NAFTA 22%

8% 20%
clothing, Industrial Vol. -1%
footwear Medical, applications & Adhesives,
Wood &
electronics Sealants
Vol. +2% sports and furniture
leisure Vol. +6% Vol. +8%
Vol. +8%
Vol. +8%
Growth driven by almost all industry groups Growth driven by almost all businesses Growth driven by APAC and EMLA
3 CMD 2018 │ CAS Notes: (a) All figures adjusted to reflect the transfer of the specialty elastomers business from the Polyurethanes segment to Coatings, Adhesives, Specialties
segment as of January 1, 2018 as well as planned termination of trading activities and reduced contract manufacturing
CAS financial performance
High margin resilience reflects specialty character
Resilient margin level
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Margin(a)(b) (€ per kg) Core volumes(b) (kt)
• Added value to customers and diversified applications secure stable margins

• Gross margin driven by high-value product portfolio as well as low-cost technology
4 CMD 2018 │ CAS Notes: (a) Defined as net sales proceeds less variable product costs per kg
(b) Including specialty elastomers business transferred from Polyurethanes segment to Coatings, Adhesives, Specialties segment as
of January 1, 2018
CAS product innovation 2017
Continuously creating new application spaces and competitive differentiation
€95m 22% ~90% 73

R&D spend of CAS sales with new of R&D spend going into patent
products not older than 5 years product innovation applications
Impranil
Bahydur Eco
Desmodur Eco
Asymmetric Eco N
Bayhydur
Bayhydrol UV Trimer
2017 2018
Aspartates
Allophanates
1997 2015
PU Desmodur N
Trimer 1993 1996
Biuret
Dispersions
1989 1992
1972 1988
1960
1960 2018
5 CMD 2018 │ CAS

CAS backward integration
Significant synergies from Covestro chemical backbone
Infrastructure Raw materials Covestro value chain

Phosgene(b)
Toluene
• Premises TDI
PUR
Nitric acid (HNO3)
• Site Phosgene(b)
development
Benzene MDI
NaOH
• Streets
HCl
• Pipeline
PCS
Phosgene(b)
Phenol
bridges PCS
Acetone
• Storage tanks
• Jetties Phosgene(b)
Chlorine(a)
Elastomers
derivatives
derivatives
TPU films
HMDA HDI
Aromatic
• Power supply
PC films
Aliphatic
CAS
PUD
TPU
& distribution IPDA IPDI
• Waste PACM
management H12MDI
• Safety
PUR/CAS
Adipic acid
Polyester polyols
HDO/BDO
Purchased raw
materials PO
Covestro activities Polyether polyols
EO
6 CMD 2018 │ CAS Notes: Simplified illustration

(a) via Deacon or HCl-ODC technology and/or chloralkali electrolysis
(b) produced from CO and Cl2
Specialties (CAS)
Coatings
Raw Materials

CAS Coatings raw materials at a glance
High-performance polyurethane chemistry for coatings
#1 3-4% ~45% >800

Producer of PU coatings Market growth(b) of total CAS sales 2017 Customers globally
raw materials(a)
• Coatings raw materials are used in a wide range of end market

applications
• Applications require high-performance products that enable distinct Corrosion
Automotive
characteristics like abrasion resistance, durability or gloss retention protection
• Focus on higher-value components in the coatings market by providing
added-value solutions
Transport &
• Global network to reliably supply customers, combined with leading Construction
vehicles
formulation know-how and technical expertise in coatings applications
• Innovation in coatings raw materials as core competency, enabling
competitive differentiation and growth
Industrial coatings Wood & furniture
• Product portfolio offers sustainable materials like water-borne and bio-
based polyurethanes as well as materials that improve the industrial
hygiene for applicators
8 CMD 2018 │ CAS Notes: (a) Polyurethane coatings raw materials

(b) CAGR 2017-2022e for polyurethane coatings raw materials excl. solvent-borne polyacrylates
Source: Orr & Boss 2017 and Covestro estimates
Coatings raw materials competitive landscape
Covestro well positioned for success in differentiated markets
Competitive position of key raw material producers(a) in 2017 Industry Covestro position
• Large scale production in all regions
Global Production • Cost efficiencies achieved by
Covestro • Efficient production processes
economies of benefitting from global assets
benefitting from low-cost technology
BASF scale and integration
• Long history of process technology
Stahl Vencorex
Production • Experience in isocyanate and and reliability
Geographic presence
Covestro know-how and PUD production required to

develop necessary know-how • Global network of process technology
expertise expertise
DSM
Wanhua BASF •
• Diverse array of end markets Inventor of and technology leader in
Portfolio isocyanate derivatives for coatings
Allnex and applications requiring a
diversification wide product offering • Focus on high added-value products
Wanhua
• Unique global experience in
DIC Technical • Expertise required to address formulation and application
Alberdingk specific customer needs with development
Evonik Tosoh know-how and
& Boley formulation and processing • Market-driven innovation in close
expertise know-how built over years collaboration with all partners in the
Lubrizol Asahi Kasai value chain
• Long-term relationships with • Proximity and long established

Local Long-term
Product portfolio customers and customer relationships
Narrow Wide customer responsiveness to customer • Developing customized solutions for
relationships needs are critical specific problems (forward marketing)
Bubble size indicative
Aliphatic isocyanates Polyurethane dispersions
in several sales clusters
9 CMD 2018 │ CAS Notes: (a) Producers of aliphatic isocyanates and polyurethane dispersions coatings raw material
Coatings raw materials industry growth
CAS coatings raw materials serve growing end-use markets
Global PU coatings raw materials industry(a) CAGR 2017-2022e Growth drivers Innovation example
Demand (in kt) Desmodur® Ultra N
CAGR in % + Conversion of auto OEM painting lines from other
Automotive 2% chemistries to high quality 2K PU(b)
technology; • Isocyanate with reduced content of
refinish with lower growth expectation due to residual monomers through
assistant systems
3-4% continuous process improvements
in our production plants
GDP ~3% Industrial + Participation in accelerated composites market
5.0% 4% growth through glass fiber sizing (water-borne • Improving intrinsic safety of flagship
coatings fiber pretreatment) product line started in 2018
1,420
GDP 2.8% • Significant improvement of
1,190 310 + Emerging markets growth favors water-borne PU industrial hygiene for coating
Construction 5% solutions; durability against graffiti removal agents applicators
and low-temperature curing
270 • Identical high performance as
930 280 replaced product lines
+ New infrastructure requirements for mobility;
230 Transportation 5% Implementation of workplace VOC(c) regulations
250 favor new PU systems
190
210
170 Corrosion 3% + Fast-curing PU systems meet market need for
protection fast return to service
150 170
130
120 120
60(d) 70(d) Wood &
+ China governmental push: Faster shift from
1% solvent- to water-borne and UV-cured coatings
Furniture products
2012 2017 2022e
10 CMD 2018 │ CAS Notes: (a) Polyurethane coatings raw materials market excl. solvent-borne polyacrylates (b) 2K PU: Two-component polyurethane
(c) VOC: volatile organic compounds (d) Diverse industries
Source: Orr & Boss and Covestro estimates
Covestro in the coatings value chain
Resins and film formers enable distinct performance of final product
Share of Covestro products in average coatings formulation Characteristics of PU-based coatings raw materials
• Unique properties in high-performance coatings:

3-5% Additives  Abrasion resistance
15-25% Extender and pigments  Outdoor weathering

 Corrosion and chemical resistance
20-30% Organic solvents or water
 Durability
60-70% Resins and film formers  Gloss retention
• Superior combination of performance and price compared to other coatings
technologies, e.g. epoxy-based coatings
CAS delivers tailored solutions and has contact with all partners in the value chain
End user
and brands
CAS raw materials Coatings Tier 1 Original equipment
formulators manufacturers manufacturer
11 CMD 2018 │ CAS

Covestro operations for coatings, adhesives and sealants
Best-in-class world-scale technologies combined with unique global production setup
Dormagen, Germany Leverkusen, Germany Niihama, Japan
Baytown, USA
Caojing, China
Santa Clara, Mexico Barcelona, Spain
Ankleshwar, India Map Ta Phut, Thailand
Page
12 CMD 2018 │ CAS
Specialties (CAS)
Adhesives & Sealants
Raw Materials

CAS Adhesives & Sealants at a glance
Polyurethanes as attractive niche in adhesives and sealants industries
#1 ~3% ~20% >500

Producer of aqueous Market growth(b) of total CAS sales 2017 Customers globally
PU ADH/SEA(a)
• Adhesives and sealants raw materials are used in wide

range of end market applications
• Applications require high-performance products with unique Automotive Wood & furniture
characteristics like high flexibility or compliance to
environmental standards like VOC(c) regulations
• Focus on higher-value components in the adhesives and Packaging Construction
sealants industries by providing added-value solutions
• Tailored solutions are adapted to substrate, environment,
industry specifics, application method and curing Industrial
Footwear
• Filled innovation pipeline ensures future competitiveness and adhesives
business growth
14 CMD 2018 │ CAS Notes: (a) PU ADH/SEA: Polyurethane adhesives and sealants raw materials
(b) CAGR 2017-2022e for polyurethane adhesives and sealants raw materials excl. solvent-borne polyacrylates
(c) VOC: volatile organic compounds
Source: Orr & Boss 2017 and Covestro estimates
Adhesives and sealants supplier competitive landscape
Competitive position of key raw material producers(a) in 2017 Industry Covestro position
• Large scale production in all regions
Global Production
Covestro • Cost efficiencies achieved by • Efficient production processes
economies of benefitting from global assets benefitting from low cost technology
scale and integration
BASF • Long term experience in • Long history of process technology
Production
isocyanate and PUD and reliability
Geographic presence
Covestro know-how and production required to develop • Global network of process technology
expertise necessary know-how expertise
Wanhua BASF • Inventor of and technology leader in
• Diverse array of end markets
Portfolio isocyanate derivatives for adhesives
and applications requiring a and sealants
diversification wide product offering
Wanhua
• Focus on high added-value products
• Potential for wide variety of solutions

Technical • Expertise required to address in an diverse field of applications
Alberdingk DIC specific customer needs with
& Boley know-how and formulation and processing • Market-driven innovation in close
expertise know-how built over years collaboration with all partners in the
value chain
Local • Long-term relationships with • Proximity and long established

Long-term
Narrow Product portfolio Wide customers and customer relationships
customer responsiveness to customer • Developing customized solutions for
Bubble size indicative in relationships needs are critical specific problems (forward marketing)
Aliphatic Isocyanates Polyurethane Dispersions
several sales clusters(a)
15 CMD 2018 │ CAS Notes: (a) Producers of aliphatic isocyanates and polyurethane dispersions adhesives and sealants raw materials
Adhesives and sealants industry growth
CAS adhesives and sealants raw materials serve growing end-use markets
Global PU ADH/SEA raw materials industry(a) CAGR 2017-2022e Growth drivers Innovation example
Demand (in kt) Latently reactive adhesive films
CAGR in % + Low-temperature curing favors PU adhesives,
Automotive 2% fast growth of exterior segment due to • Superior performance of water-
light-weight construction borne polyurethane adhesives for
~3% high-performance durable adhesive
films, which are resistant against
GDP ~3% + Trend towards wood-based laminated heat, water and chemicals
4.3% Construction 4%
930 construction materials • Allows separation of adhesive
GDP 2.8% application and assembling and
800 bonding step
250 + PU-based solution for flexible food packaging
Packaging 4% enabling faster throughput production process • Simple, clean and easy handling of
650 and food safety adhesive films: no liquid adhesive,
230
no metering, no overspray,
190 no drying
+ Increased need for high-performance materials,
160 Footwear 4% functionality and design; automated production in • Uniform and defined layer thickness
“speed factories”
180 • Established in recent years and
150 growing in various industrial
Industrial + Trend towards wind energy requires applications, e.g. electronics, textile
100 4%
80 Adhesives new bonding solutions and construction
90
70 20
20
90(b) 110(b) + Increased lamination adhesive demand; China
Wood & 2% consumption tax favors the use of water-based
Furniture products
2012 2017 2022e
16 CMD 2018 │ CAS Notes: (a) PU ADH/SEA: Polyurethane adhesives and sealants raw materials
(b) Diverse industries
Source: Orr & Boss and Covestro estimates
Covestro in the adhesives and sealants value chain
Highly versatile chemistry enables tailor-made adhesives and sealants formulations
Covestro products in average adhesives and sealants formulation Characteristics of PU-based adhesives and sealants raw materials
Additives • Unique properties in high-performance adhesives and sealants:

Extender and pigments
 High flexibility
Organic solvents or water
Resins and film formers  Low-temperature curing
 Hydrolytic stability
• Offers solutions for environmental challenges, e.g. low VOC(a)
CAS delivers tailored solutions and has contact with all partners in the value chain
End user
and brands
CAS raw materials Adhesives Tier 1 / contract Original equipment
formulators manufacturers manufacturer or brand owners
17 CMD 2018 │ CAS Notes: (a) VOC: volatile organic compounds

Specialties (CAS)
High Growth Specialties
Thermoplastic Polyurethanes
(TPU)

Thermoplastic Polyurethanes (TPU) at a glance
Leading supplier for high-performance resins
#3 ~6% ~10% 6
Producer of TPU(a) Market growth(c) of total CAS sales 2017 Production facilities
globally(b)
• High-performance resins covering diverse markets

from hard plastics to soft elastomers and rubber
• Core volume growth of 13% (CAGR 2015-2017) Textiles Agriculture
• Opportunity to outgrow industry by constant re-specifications and
innovative market extension
• Covestro as global top 3 producer with leading positions in all major
regions and commitment to growth IT & electronics Automotive
• Leverage of formulation and processing know-how across global
production network as basis for planned capacity expansions
• Attractive internal synergies via backward integration in MDI and Sport & leisure Industrial
polyester polyols as well as broad access to diverse customer industries
• Well-filled innovation pipeline including path to lower production costs
with CO2-based polyols
19 CMD 2018 │ CAS Notes: (a) Thermoplastic polyurethanes

(b) Incl. 50/50 JV with DIC in Japan
(c) CAGR 2017-2022e for global thermoplastic polyurethanes market
TPU competitive landscape
Competitive landscape of key TPU producers in 2017 Industry Covestro position

Global Production •
• Cost efficiencies achieved by Large scale production in all regions
economies of benefitting from global assets and • Backward integration and global supply
backward integration agreements on raw materials
Lubrizol Covestro BASF scale
Production • History of process technology experience

Geographic presence
• Long term experience in TPU and know-how in reactive extrusion

Huntsman know-how and production required to develop
• Global network of process technology
necessary know-how
expertise expertise
• Greater than 100 end markets with over

• Diverse array of end markets and
Portfolio 400 products
applications requiring a wide
diversification product offering • More than 700 primarily solution-based
Wanhua
customers
Huafon Coim
Technical • Expertise required to address • Technology and know-how leader for
specific customer needs with injection molding
know-how and formulation and processing know- • Unique global experience in formulation
APAC & EMEA SMEs expertise how built over years and application development
(e.g. Innov, Miracll, Bangtai)
Local • Diverse, global footprint with resources in
Narrow Product portfolio Wide Long-term • Long-term relationships with each region to support local market
customer customers and responsiveness to
• Proximity and long established customer
Bubble size indicates customer needs are critical
relationships relationships
2017 sales volumes
20 CMD 2018 │ CAS Source: Covestro estimates

TPU industry growth
Attractive growth based on multiple drivers and segments
Global TPU industry(a) CAGR 2017-2022e Growth drivers Innovation example

Demand (in kt) cardyon™
CAGR in %
Cable 5% + Growth in electric cars and electronic • Polyol for the production of high-
products worldwide performance TPU
~6%
• Innovative Covestro technology
Extrusion
+ Urbanization in emerging regions enabling carbon capture and
GDP ~3%
6.4% HTBP(c) 6% + Resistance against hydrolysis and grease make utilization by partly substituting oil-
800 TPU a material of choice for hoses in oil industry based raw materials with CO₂
50
GDP 2.8% • Helps to close the carbon loop by
+ Driven by desire for water resistance and bringing CO₂ back into the value
150 Films/ 5% breathability in fabric for fashion industry
610 chain and reducing carbon footprint
Sheets + Increasing demand in specialty and protective
40 films in electrical/electronics and auto applications • Enables manufacturers to look at
110 140 alternative and more sustainable
450 + Rising income and desire for better living raw materials while reducing their
30 80 Footwear 6% standards in emerging regions reliance on fossil fuels
110 + Increasing demand for comfort in mature regions
70
• First small lots produced in 2018
Injection molding
70
80 60 and global sampling to selected
50 100 + Driven by growth of mobile and wearable devices accounts initiated
50 + Wide range of hardness and good bonding with
40 70 IT 7%
other polymers make TPU a popular choice for
50 various IT components
170(b) 210(b)
130(b)
Industrial
+ Urbanization in emerging regions
7% + Superior durability of TPU over other materials in
mechanics heavy-duty environment (e.g. castor, animal tag)
2012 2017 2022e
21 CMD 2018 │ CAS Notes: (a) Covestro estimates

(b) Diverse industries including healthcare, transportation, compounding, coatings & adhesives and off-grade
(c) HTBP: Hoses, Tubes, Belts, Profiles
Covestro TPU operations
Global asset footprint provides excellent market access and customer proximity
Dormagen, Germany Innovation centers

TPU facility
Leverkusen, Germany
Sakai (DCP), Japan(a)
Pittsburgh, USA
New Martinsville, USA
Taichung, Taiwan
Cuddalore, India Shenzhen, China
22 CMD 2018 │ CAS Notes: (a) DCP: DIC Covestro Polymer, a JV of Covestro and DIC, Japan
TPU backward integration
Upstream of resin production (recap) Extended TPU value chain
Phosgene
Toluene
• Premises Nitric acid (HNO3) TDI Resin production TPU resins
• Site Phosgene
development
Benzene
NaOH
MDI
HCl
• Streets
• Pipeline Phenol Phosgene
bridges PCS
• Storage tanks
Acetone Compounding(a) Compounding
Phosgene
• Jetties
Elastomers
Chlorine
derivatives
derivatives
TPU films
HMDA HDI
Aromatic
Aliphatic
PC films
• Power supply
PUD
TPU
• Waste PACM H12MDI Injection Molding
management
• Safety
Adipic acid Converter Extrusion
Polyester polyols
HDO/BDO
Purchased raw
materials PO
Polyether polyols
Covestro activities
EO Coatings / Adhesives
Applications

(a) by Covestro or Covestro customer
Specialties (CAS)
Specialty Films

Specialty Films at a glance
Leading film solution provider focused on PC-, TPU- and holographic films
#1or #2 6-7% ~10% 5

Producer of PC- and TPU- Market growth(a) of total CAS sales 2017 Production facilities
films, depending on region globally
• Leading supplier in all key regions for PC- and TPU-films

• Supplying diverse, regional markets with customized films solutions TPU films
• Core volume growth of 6% (CAGR 2015-2017)
• Robust future growth expectation significantly above GDP supported by
innovative product portfolio PC films
• Strong technology background in extruded films production, surface
modification and coatings technology
• Strong innovation pipeline offering solutions to future Holographic films
industry trends
25 CMD 2018 │ CAS Notes: (a) CAGR 2017-2022e of global PC- and TPU-films market
Specialty Films competitive landscape
Leading films producer with focus on high-end films applications
Competitive landscape of key films producers in 2017(a) Industry Covestro position

Global • State-of-the-art technology along
the process chain of high • IP-protected, competitive process
Process importance technology
3M technology • Ability to combine different • Ability to offer multilayer solutions and
Covestro technologies and offer multilayer combine PC- and TPU-Films
Mitsubishi solutions
Sabic
Geographic presence
• Favorable backward integration

Teijin • Backward integration as major
value lever • Long-term supply contracts for important
Integration • Conversion capabilities important
precursors
SWM to offer broad product portfolio • Conversion capabilities in all regions
(slitting and sheeting)
Dingzing • Systems demanding greater

• Superior expertise and know-how in
knowledge and expertise
Technical application development
• Technical centers in all regions to
capabilities and • Technical centers in main regions
Gerlinger develop custom solutions
expertise • Strong R&D backbone based on films
• Innovation capabilities to offer
API and coatings know-how
solutions to industry
Longhua
Local • Importance of proximity to
Market attractiveness Proximity to customer markets • Diverse, global footprint
Commodity Specialties
customer • Global asset base critical to • Production plants in all core regions
markets support ambitions of global (except for TPU films in APAC)
Bubble size indicates customer base
2017 sales volumes
26 CMD 2018 │ CAS Notes: (a) Global PC- and TPU-films

Specialty Films industry growth
Strong growth in core segments supported by future industry trends
Global films industry(a) CAGR 2017-2022e Growth drivers Innovation example

Demand (in kt) Holographic filters
+ Growing population and increased demand for
CAGR in % state-of-the-art identification
Security 4-9% • Laser strikes on commercial
+ Upside potential by new PC-based identification aircrafts are rising globally:
projects
6-7% lasers can distract pilots during
critical phases of flight and can
PC films
GDP ~3%
+ Integration of new display concepts and head-up cause temporary visual impairment
5.2% Automotive 5% displays combined with design freedom in
130 automotive interior • Transparent laser protection filters
GDP 2.8% developed by Canadian company
Metamaterial Technologies Inc.
Div. + Overall trend towards roll to roll manufacturing together with Covestro and partners
55 4%
95 industries processes of the aircraft industry
• The filters are based on IP
75 protected photopolymer films
+ Demographic change, trend towards highly (Bayfol HX) of Covestro
45 Medical 10% sophisticated wound care solutions
+ Strong trend towards wearable solutions •
TPU films
Start of production is planned for

35
2019e; additional potential is seen
for police visors
75 Div.
4%
+ TPU technology of choice for niche applications in
industries textile, packaging, construction
50
40
+ Electronics: Strong market need for holographic
Holographic
films in head-mounted glasses

1 Div.
>10% + Strong value proposition for other industries (e.g.
industries head-up displays for automotive)
2012 2017 2022e + New market to be developed for holographic films
27 CMD 2018 │ CAS Notes: (a) Global PC- and TPU-films market as per Covestro estimates
Covestro Specialty Films operations
Global footprint with strong technical capabilities
Bomlitz, Germany Dormagen, Germany Technical centers

Films production facility
South Deerfield, USA Leverkusen &

Dormagen, Shanghai,
Germany China
Map Tha Put, Thailand
Pittsburgh,
USA
Leverkusen, Germany
28 CMD 2018 │ CAS

Specialty Films backward integration
Upstream of resin production (recap) Extended Specialty Films value chain
Toluene Phosgene
TPU resins
• Premises Nitric acid (HNO3) TDI
• Site
development
Benzene
Phosgene
Resin production PC resins
NaOH
MDI
HCl
• Streets
bridges PCS Other resins(a)

Acetone
• Storage tanks
Phosgene
• Jetties
Elastomers
Chlorine
derivatives
derivatives
TPU films
HMDA HDI
Aromatic
TPU Films
Aliphatic
PC films
• Power supply
PUD
TPU
• Waste PACM H12MDI
management Film production PC Films
• Safety
Adipic acid
Polyester polyols Other Films(b)
HDO/BDO
Purchased raw
materials PO
Covestro activities Polyether polyols Coating may be applied to add additional
EO Coater
functionalities to the film
TPU films PC films Holographic films
Applications • Medical • Automotive • Electronics

• Construction • Security • Automotive

(a) Other resins may include CO-PET, ABS, PEI, PA, TAC, PC and TPU
(b) Monolayer or combined
Specialties (CAS)
Elastomers

Elastomers at a glance
Leading supplier for PU cast elastomer systems and equipment
#2 3-4% ~10% 11
Producer of Market growth(a) of total CAS sales 2017 Production sites
PU elastomer systems globally
• Globally leading supplier for elastomers systems with a comprehensive portfolio based on
NDI, MDI, TDI and aliphatic isocyanates PU casting machines
• Global number one position for casting equipment
• Core volume growth of 8% (CAGR 2015-2017) Pipeline cleaning device
• “One-stop shop” aiming for efficient customer support, particularly in growth markets for oil and gas industry
• Target to capture market growth and to ensure growth above GDP, based on already
available production capacities Cyclone equipment for
mines and quarries
• Production plants in main regions for optimized supply chain and to ensure cost efficiency industry
31 CMD 2018 │ CAS Notes: (a) CAGR 2017-2022e for global PU elastomers market
Elastomers competitive landscape
Globally #2 position with a strong focus on growth
Competitive landscape of PU elastomer producers in 2017 Industry Covestro position

• Intense investments required relative to • Combination of large Covestro
Wide Capital market size, especially for highly manufacturing sites and
intensity technical product manufacturing (e.g. dedicated production units in main
low-free isocyanates technology) markets
Lanxess • Covestro owns key technologies:
• Beside low-free isocyanates low-free isocyanates, lower
Process
technology, relatively limited process reactivity amine-cured MDI-based
technology
Product portfolio
Covestro complexity prepolymers, NDI-based stable

COIM prepolymers, etc.
Notedome • Security of precursor supply essential • Favorable backward integration

ERA Feedstock
Dow • Backward integration as major • Long-term supply contracts for
integration value lever important precursors
Anderson- • Superior expertise and know-how
BASF Mitsui in application development and
Multiple local • Systems processing demand special
Chinese Technical processing
knowledge and expertise
competitors capabilities • Combined chemistry and
• Suppliers have to provide molders not equipment solution
Huntsman and only with products but with full technical
expertise support • Valued and recognized hands-on
Narrow expertise thanks to the heritage of
past molding activity
Commodity Market attractiveness Specialty
• Proximity to customer markets • Global presence in more than 80
Bubble size indicates Proximity to
important countries
2017 sales volumes customer
• Global asset base critical to support • Production plants in all core
markets ambitions of global customers regions

Elastomers industry growth
PU elastomers outperform GDP by addressing key needs like durability and performance
Global PU elastomers industry CAGR 2017-2022e Growth drivers Innovation example

Demand (in kt) + Cyclical but continuous growth driven by Chinese needs New Baule® machine range: customized
CAGR in % Mines & (> 50% of demand) added value with modularization and digital
3% + After years of lower activity and consolidation, market recovery Baule® Easy Services
Quarries started 2017
Energy & raw materials

3-4% + PU elastomers replace other materials like rubber • Individualization, low invest and future-
proof require a flexible and upgradable
GDP ~3% + After a period of excess capacity and low oil price, forecasts return to modular platform approach
3.4%
Oil & Gas 2% growth until 2040e (despite lower oil share in future energy mix)
245 + PU elastomers potential in maintenance and in new field investments • Reduced downtime and higher
GDP 2.8% performance are met by Digital Baule®
Easy Services
205 + Renewable energy incl. off-shore wind farms expected to grow
70 Offshore significantly  online tech support and maintenance
9% + Covestro well positioned in Europe and China, foreseen to become
Windfarm  online spare part order
170 the global number one
60
 digital processing data analysis,
40 documentation and optimization
Logistics & automotive
50 + Fragmented market, strongly linked to the overall economy

35 Handling 2% + Covestro with leading position in the high-end performance segment • Launched in 2018, patents pending
with Vulkollan® brand
30
+ Bumpers are a key element for cars, also for e-mobility and car-sharing
135 Auto 3% models
110 + Covestro with leading position in the market for jounce bumpers
90
+ Fragmented market for industrial, sports, leisure and other applications

Others
Diverse + Covestro is well positioned due to a comprehensive product and

4%
Industries application portfolio as well as an extensive global distribution network
2012 2017 2022e

Covestro Elastomers operations
11 production sites and five dedicated technical centers support customers globally
Business and sales

representations
Cheadle Hulme, UK
Co-production facilities
Pittsburgh, USA
Technical centers
Tianjin, China
Dormagen, Germany
Tarragona,
Spain PRDC Shanghai, China
Baytown, New Martinsville,

USA USA
Caojing, China
Santa Clara, Mexico Leverkusen, Germany
Romans, France
34 CMD 2018 │ CAS

Elastomers backward integration
Upstream of resin production (recap) Extended Elastomers value chain
Phosgene
Toluene
• Premises Nitric acid (HNO3) TDI Desmodur® Systems
• Site Phosgene
development
Benzene Prepolymers
NaOH
MDI
HCl
• Streets
Elastomer (Desmodur®)
bridges
Acetone PCS
production Polyols
• Storage tanks
• Jetties
Phosgene (Baytec®)
Elastomers
Chlorine
derivatives
derivatives
TPU films
HMDA HDI
Aromatic
Aliphatic
PC films
• Power supply
PUD
TPU
& distribution IPDA IPDI Chain extenders
• Waste PACM H12MDI (Baytec®)
management
• Safety
Adipic acid
Polyester polyols Casting equipment
Purchased raw
HDO/BDO Machine
materials PO
Polyether polyols Manufacturing(a)
Covestro activities
EO Baulé® machines
Mines and quarries Automotive Renewable energies Oil and gas Material handling
Applications

(a) by Covestro
Specialties (CAS)
Textile Coatings
Medical
Cosmetics
Additive Manufacturing
CAS High Growth Specialties
Developing above-average growth niches in adjacent industries
Textile Coatings Medical
High-quality polyurethane
New polyurethane-based
dispersions and isocyanate
materials for wound care and
crosslinker materials for various
wearable devices
textile coating applications
Market size 2017(a): ~60,000 tons (~200m€) Market size 2017(b): ~24,000 tons (~250m€)
Market growth CAGR 2017-2022e(a): ~7% Market growth CAGR 2017-2022e(b): ~5%
Covestro growth target CAGR 2017-2022e: ~10% Covestro growth target CAGR 2017-2022e: >20%
Applications Applications
• For automotive interior: polyurethane synthetics for car seats, dashboards, • New two-component PU adhesives and PU prepolymers for foams allow
door panels, etc. improved moisture management and higher efficiency in wound care
• For sports and outdoor: coated textile with functions such as water-proof and • Combination products and functionalization with active ingredients are
breathable; sports shoes; printings on shoe upper and sports wear; digital feasible
printing on textiles • Patches in wearable devices as strong growth area
• For technical textiles: polyurethane dispersions dipping for protected gloves;
conveyor belts
37 CMD 2018 │ CAS Notes: (a) Sources IAL / M&M / GVR / CPPIA and Covestro estimates
(b) Covestro estimates
CAS High Growth Specialties
Developing above-average growth niches in adjacent industries
Cosmetics Additive Manufacturing (3D Printing)
Sustainable film formers as

Innovative material
waterproofing as well as
solutions for additive
conditioning and fixative agents
manufacturing
for cosmetic formulations
Market size 2017(a): ~49,000 tons (~500 m€) Market size 2017(b): ~13,000 tons (~800 m€)
Market growth CAGR 2017-2022e(a): ~5% Market growth CAGR 2017-2022e(b): ~20%
Covestro growth target CAGR 2017-2022e: >40% Covestro growth target CAGR 2017-2022e: >50%
Applications Applications
• High-performance polyurethanes for make-up, nail polish, hair, sun and skin • Tailor-made materials for core 3D printing technologies
applications • In-house expertise and partnerships to enable industrial production
• Baycusan® polymers achieve significantly higher bio-degradability rates than • Strong potential in automotive, medical, sport and electronics sector
benchmark film formers, reducing the impact on the environment
• Baycusan® Eco line based on renewable raw materials allows customers to
formulate cosmetic products with high natural origin content
38 CMD 2018 │ CAS Notes: (a) Covestro estimates

(b) Additive manufacturing material; Source: Wohlers Report 2017 by Wohlers Associates; Covestro estimates

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#PushingBoundaries

00_545891_Pushingboundaries_Titelseite_Booklet_297x182mm_0518.indd 1 01.06.18 10:03

covestro.com CMD 2018 │ Strategy

Thursday, 28th June 2018

9:30 CEO – Strategy

10:30 CFO – Financial Performance

12:00 Lunch break

13:00 Breakout session I – hosted by heads of segments

14:00 Breakout session II – hosted by heads of segments

15:00 Breakout session III – hosted by heads of segments

16:00 Informal get-together & cocktail dinner

1 CMD 2018 │ Strategy

Dr. Markus Dr. Thomas

2 CMD 2018 │ Strategy

Daniel Meyer Michelle Jou Michael Friede

3 CMD 2018 │ Strategy

Above GDP volume growth

More than half of sales generated by resilient businesses

Balanced supply and demand outlook

Leading innovation in materials and operations

Non-financial targets support growth strategy

4 CMD 2018 │ Strategy

5 CMD 2018 │ Strategy

UN SDGs(a) Needs to be served Industry demand outlook(b) 2017 – 2022e

• Zero emission concepts 16.9

Trend Need Growth Covestro contribution

More and better Number of Raw materials for

Covestro • Less material cost and

Trend Need Market Covestro contribution

Reduced weight, increased comfort Global car Pioneering all-around

Relevant car • Most stringent weight

Trend Need Growth Covestro contribution

Sales split by regions Sales split by end-market

11 CMD 2018 │ Strategy

Sales by segments Highlights

Resilient businesses • Resilient portion of PCS business is driven by

Resilience Resilience • CAS business is resilient in sales and earnings

PCS • Resilient portion of MDI business consists of

#1 €2.3bn 20.9% 16%

Ingredients for Ingredients for Ingredients for

CAS sales split by businesses Highlights

#3 ~6% Lubrizol Covestro BASF

~10% 6 Huafon Coim

of total CAS Production facilities APAC & EMEA SMEs

Bubble size indicates

15 CMD 2018 │ Strategy Notes: (a) Global thermoplastic polyurethanes market

Specialty Films highlights Competitive landscape of key films producers in 2017(a)

#1or #2 6-7% Mitsubishi

Bubble size indicates

Elastomers highlights Competitive landscape of PU elastomer producers in 2017(a)

Producer of Market growth Covestro

Bubble size indicates

17 CMD 2018 │ Strategy Notes: (a) Global PU elastomers market

#1 €3.7bn 22.8% 26%

Mobility Electronics Consumer Electrical Mobility Healthcare

Development of resilient portion of PCS volumes Covestro highlights

Resilient business Higher asset utilization

1,270kt 1,480kt >1,700kt Covestro capacity(a)

Share of compounded resins Concept of compounding

Fillers and e.g. glass fiber to provide high

e.g. UV / light stabilizers to

Resins Application e.g. colors to provide optical

Broad offerings Medium offering Limited to No offering

21 CMD 2018 │ Strategy Notes: (a) Covestro estimate