Lanxess Fact Book 2022

FACT BOOK
Edition 8.0 – November 2022

Safe harbor statement
The information included in this presentation is being provided for informational purposes only and does not constitute an offer to
sell, or a solicitation of an offer to purchase, securities of LANXESS AG. No public market exists for the securities of LANXESS AG in
the United States.
This presentation contains certain forward-looking statements, including assumptions, opinions, expectations and views of the com-
pany or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual re-
sults, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied
herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor
does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of
the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed
on, any information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors,
omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies
or any of such person‘s officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of
this document.
Fact Book 2022

TABLE OF CONTENTS
Fact Book 2022
01 LANXESS – Energizing Chemistry

5 Overview
9 Strategy
39 Sustainability
02 Business Segments
55 Consumer Protection
59 Material Protection Products
99 Advanced Intermediates
103 Advanced Industrial Intermediates
64 Flavors & Fragrances 108 Inorganic Pigments
69 Saltigo
74 Liquid Purification Technologies
79 Specialty Additives
83 Polymer Additives
89 Lubricant Additives Business
95 Rhein Chemie
03 Financials
114 Financing
121 Share in Polymer Joint Venture
124 History
130 Appendix
WELCOME LETTER
Investor Relations
November 2022
Dear Investor, dear Analyst,
LANXESS has substantially changed its characteristics as a What you can expect from us:
corporation and as an investment over the last years. We built a
 Full commitment based on a culture that fosters performance and
strong business platform which now enables us to accelerate resilient
open feedback every day
growth and profitability.
 Increasing cashflows, as exceptional cash outs for integration and
We have not only proven our new stability through the global
IT projects phase out in the next years
pandemic, we have also started to expand our already strong footing
in Consumer Protection products, which comprises various types of  Continued implementation of measures on our roadmap to reduce
disinfectants, preservatives and biocides for globally growing CO2 emissions and remain a frontrunner in sustainability
applications in attractive sectors such as Animal Health, Beverage and management and workforce with “skin in the game” when it comes
Personal Care, just to name a few. to investments in our own shares
Business Segment
In terms of sustainability, we have not only defined a clear path
towards climate neutrality earlier than the European trajectory, but also
 Active and transparent communications through real and virtual
channels by top management
set clear targets for aspects such as water use and diversity. Therefore, we are thrilled to implement our plans for the next years to
Going forward, we will continuously shape our portfolio to deliver expand what LANXESS stands for to a broader, more powerful base.
higher returns and attractive growth with a clear focus on cash My fellow colleagues and I myself are committed to generating
generation, while maintaining our financial stability and remaining excellent returns for our investors – and are looking forward to
committed to generating value. continue our personal dialogue.
This Fact Book will provide you with the most transparent and Sincerely,
comprehensive information on our strategy, businesses, ESG related
focus and financials, in order for you to make the most educated
investment decision.
We want to become an attractive target on everyone’s radar who is
looking for broad international exposure with German quality chemical Matthias Zachert
roots. You are invited to join our journey. Chairman of the Board of Management
Fact Book 2022

LANXESS Fact Book
2022
LANXESS
Energizing Chemistry
LANXESS - ENERGIZING CHEMISTRY BUSINESS SEGMENTS FINANCIALS
5 Overview Consumer Protection I Specialty Additives I Advanced Intermediates
9 Strategy
39 Sustainability
LANXESS – a globally operating specialty chemicals company
 Specialty chemicals portfolio with focus on consumer

Specialty
chemicals protection chemicals, specialty additives and advanced
company chemical intermediates
 53 production sites worldwide
Set-up  Around 13,200 employees in 33 countries

 Global sales of €7.8 bn LTM Sep 2022
 Building on leading positions in medium-sized markets

Focus on
profitability  Strengthening in Europe, expansion in USA
and resilience  Differentiating by LANXESS performance culture
Fact Book 2022 5

9 Strategy
39 Sustainability
Strong portfolio of attractive businesses:

reduced complexity, higher profitability, lower asset intensity
Consumer Protection Specialty Additives Advanced Intermediates
 xx  xx
 Material Protection Products  Polymer Additives  Advanced Industrial Intermediates

 Flavors & Fragrances  Lubricant Additives Business  Inorganic Pigments
 Saltigo  Rhein Chemie
 Liquid Purification Technologies
 Among top 3 players  Among top 3 players  Among top 3 players

 High profitability  Small volume, high impact  Technology and process driven
 Asset light and high cash conversion  Integrated value chains  Market leader in Western hemisphere
Group functions and countries
Globally responsible Business Unit set-up fosters dedication and entrepreneurship
Fact Book 2022 6

9 Strategy
39 Sustainability
LANXESS well diversified, worldwide presence and serving

a broad range of industries
LANXESS key figures by region LTM Sep 20221 Pro-forma sales by industry2
Mobility
Germany Chemical
Americas industry
23% Asia-Pacific Energy, natural
51% 17%
22% resources
31% 6%
and
industrial
EMEA w/o applications
Germany Construc-
tion
30% 20%
Agriculture and Nutrition, health

animal health and consumer
goods
Sales1: ~€7.8 bn Investment3: ~€7 bn
1 LTM Sep 2022; restated, excluding HPM business shown under discontinued operations from 2022 onwards; 2 Excluding HPM business and including contribution of newly acquired IFF-MC business;
3 Organic and inorganic investments since 2017 by region
Fact Book 2022 7

9 Strategy
39 Sustainability
Organization with global responsibility –

the board of LANXESS
Matthias Zachert Michael Pontzen Hubert Fink Anno Borkowsky
CEO CFO Board of Management Board of Management
Business Units  Accounting Business Units Business Units

 Flavors & Fragrances  Corporate Controlling  Advanced Industrial  Lubricant Additives Business
Intermediates
 Liquid Purification Technologies  Global Business Services  Polymer Additives
 Inorganic Pigments
 Material Protection Products  Information Technology  Saltigo  Rhein Chemie
 Corporate Communications  Mergers & Acquisitions  Urethane Systems  Human Resources /
 Global Procurement & Logistics Labor Director
 Corporate Development  Tax & Trade Compliance
 Production, Technology,  eMobility & circular economy
 Legal & Compliance  Treasury & Investor Relations
Safety & Environment initiative
Clear cut responsibilities enable fast decision making
Fact Book 2022 8

9 Strategy
39 Sustainability
Our portfolio transformation has been successful:

Recent divestments support strategic goals
 Monetizing hidden reserves

CURRENTA
stake  Cash inflow strengthened financial
position
 Exit from unattractive business

Leather
business
 Reducing automotive exposure
Organo-  Rigorously addressing under-performing

metallics businesses across our portfolio
(Tin / Gallium based)
Membranes  Shifting all resources to focus areas
Fact Book 2022 9

9 Strategy
39 Sustainability
Targeted acquisitions in Consumer Protection boost specialty

character of LANXESS portfolio
 Currenta
 Secular growth
 Organic  High profitability

Leather  Asset light and strong cash conversion
Microbial Control
busines
s  Complementary to existing business
(thus, high synergies)
 CO2 light
Fact Book 2022 10

9 Strategy
39 Sustainability
LANXESS portfolio transformed towards a true specialty

chemicals player
Portfolio transactions since 2016
Transaction values
Acquired businesses:
~€6.2 bn High profitability and cash generation
HPM*
Asset light
~€4.2 bn Less cyclical
Leather
Additives
Rubber Flavors &

Divested businesses:
Fragrances
Lower profitability
Actives &
Infrastructure Disinfectants
Asset intensive
Volume and polymer
Commodity assets Specialty assets
Specialty assets
assets More cyclical
sold purchased
* HPM: High performance materials business (Polyamid); to be transfered to JV with Advent, transaction still subject to the approval of responsible authorities; closing expected in H1 2023
Fact Book 2022 11

9 Strategy
39 Sustainability
Portfolio transformation increased US footprint…
Growth CAPEX and M&A spending since 2017*
!
~€5 bn
Strengthened Americas
Portfolio transformation
focus:
asset footprint
81%  Chemtura  IFF MC
!
 EKC  Bolt-ons
German exposure
further reduced
Americas Rest of world
* Growth CAPEX spending and M&A activity in %; incl. HPM and pro forma IFF
Fact Book 2022 12

9 Strategy
39 Sustainability
… and led to a more balanced end-market exposure
Balanced end-market exposure*
>20%
~10%
<10%
~20%
Mobility
Auto
Food, health and

consumer goods
Energy, natural
! Auto exposure
reduced
resources
!
Construction Higher portion of
Chemical inudstry end-consumer
Agriculture & animal focused markets
care
2020 2022
* Pro forma sales split including IFF contribution and excluding HPM business
Fact Book 2022 13

9 Strategy
39 Sustainability
Specialty character substantially increased –

portfolio transformation concluded (for the time being)
Becoming a leading specialty chemicals player
Sales 2017 Sales 9M 2022
~90 HPM
~90 HPM
Specialty
Chemicals
Polymers (ARLANXEO, HPM) Consumer Protection Specialty Additives Advanced Intermediates
a) Specialty character improved – portfolio now mainly based on specialty chemical value chains
Illustration simplified; Urethanes excluded
Fact Book 2022 14

9 Strategy
39 Sustainability
Portfolio transformation strengthened our resilience –

prepared for the next challenges
Financial crisis Rubber crisis Covid pandemic
EBITDA pre in €m
1. Balanced end-
market splits 
-~35% 1223 -~40% -~6%*

1019 Reduced
~950 2.
~90 HPM automotive
722 735 exposure
465

3. Better positioned
for challenges
ahead

2008 2009 2012 2013 2019 2020
4. Improving geo-
graphical footprint
Exit from rubber
Exit from polymers

(HPM) Resilient, non-cyclical business
* Covid impact incl. HPM was ~14% of EBITDA decline; without HPM it would have been only ~6%
Fact Book 2022 15

9 Strategy
39 Sustainability
Now the imperatives are the following for LANXESS!
2022 2023 2024/25
A leading specialty Deliver on synergies

chemicals player and improved
earnings potential
Get through
the crisis
 Portfolio adjustment  More resilient than before  Reap benefits of strong

positions and unique
 Major transformation steps  Market, technology, and capabilities of LANXESS
accomplished operational leadership
businesses
Fact Book 2022 16

9 Strategy
39 Sustainability
Portfolio framework: Two growth-focused platforms –

financed by a stable backbone
Growth focused Stable backbone
% of group EBITDA pre*
~40% ~30% ~30%
a) Complexity reduced; Consumer Protection will stand for ~40% of EBITDA pre
* Pro forma split including IFF contribution and excluding HPM business
Fact Book 2022 17

9 Strategy
39 Sustainability
Updated order of segments underlines new focus

1 2 3
Fact Book 2022 18

9 Strategy
39 Sustainability
Active market transformation created a strong global position in

microbial control
Integration level
LANXESS among Major

New global

1. top 3 players in players
champion
the biocide
created! Microbial
Product portfolio
business
Control
A
Active market
transformation B
reduced number of
big players
Landscape:
Integrated industrial biocides (illustrative)
LANXESS formed top player in transformed market with strong underlying growth
Fact Book 2022 19

9 Strategy
39 Sustainability
LANXESS created a new global champion in flavors and

fragrances
 A leading global
Strong position supplier:
1. in niche markets
 BU
F&F  Quality
 Customer
proximity
 Technology
+  Strongly
integrated value-
A B C D E all A B C D E all
chains and global
others others production set-up
Landscape: Field of F&F molecules*
LANXESS created a strong player in the field of flavors and fragrances
* Illustrative and simplified, segment positioning in terms of revenue, approximate figures based on IHS, Markets & Markets custom report, LANXESS own research
Fact Book 2022 20

9 Strategy
39 Sustainability
LANXESS with global reach in flavors and fragrances
Kalama (US)
Strong position Krefeld-Uerdingen (DE)

Widnes (UK)
1. in niche markets BU
F&F Botlek (NL)
New global
+
champion Nagda (IN)
created!
Production Site
LANXESS expanded on existing position in attractive F&F market
Fact Book 2022 21

9 Strategy
39 Sustainability
Consumer Protection businesses well positioned to exploit

strong growth trends in their markets
2. Strong secular
growth driven by
underlying trends
 ~5% avg.
Market growth in Consumer Protection end-markets
Stricter regulations and Strong growth in

sustainability Home & Personal Care
Population growth and Water quality and

urbanization scarcity
Higher health Consumer preference

awareness for ”milder” solutions
Fact Book 2022 22

9 Strategy
39 Sustainability
Specialty Additives: Driving segment to full potential

Fact Book 2022 23

9 Strategy
39 Sustainability
Specialty Additives: Leading positions, strong US asset base and

major trends driving GDP growth
Flame retardants:  Major players account for the largest
Chinese local
players  . part of the business

Strong position in BU BU PLA
1.  ICL  Western players better positioned to
niche markets PLA (example)
 Albemarle cope with high regulatory standards
Flame retardants market (simplified)
 Market transformation driven by

Chemtura acquisition
 BU
LAB
Non-auto lubricant additives*

 LANXESS with one of the broadest
product portfolios
 Strong in non-auto lubricants additives
 Backward integration into one of few

Bromine sources globally – Arkansas
2.
Strong asset base
outside Europe  Main plants
in US
site: 2nd highest concentration and
well-positioned in industry cost curve
 Lubricants: majority of plants also in
US
* Simplified, approximate figures based on Kline Global Lubricant Additives, LANXESS own research
Fact Book 2022 24

9 Strategy
39 Sustainability
Advanced Intermediates as stable backbone

Fact Book 2022 25

9 Strategy
39 Sustainability
Advanced Intermediates: Strong market positions and process

technology as strong base for LANXESS growth
Organo-  Strong market share in

Aromatic

Polyols &
Leading Inorganic oxidation
metallics majority of businesses
1. BU AII network acids products  Sole local supplier in Western
positions
World e.g., for majority of
LANXESS
market share >30% >20% >15% aromatic network products
#1

 IPG with strong position
BU IPG #1
#1 around the world, above
40% market share in Europe
IPG market share
30-40% >40%
+ Cost and technology leader in

“irreplaceable” asset network
Strong
2. integrated
asset base  + IPG: globally largest production
-
capacity
Current energy downside:
predominantly Germany based
Fact Book 2022 26

9 Strategy
39 Sustainability
Our businesses have higher profitability potential in a normal

business environment
Path to profitability recovery and underlying expansion

 Contribution from specialty  Growth in specialty niches  Completed debottlenecking
business EKC and IFF MC supports margin increase measures allow for substantial
utilization increase when demand
 Total synergy generation of up  Product and portfolio pruning
returns
to €55 m  Further support from easing
 No additional growth CAPEX
logistics
needed
>20% up to 20% 16-18%

EBITDA pre margin potential EBITDA pre margin potential EBITDA pre margin potential
Focus on
Underlying cash-in and
profitability deleveraging
expected while
to grow driving value
significantly upsidefrom
– support andeasing
portfolio
of simplicity!
inflation
Fact Book 2022 27

9 Strategy
39 Sustainability
Portfolio framework well balanced and positioned for the future
Portfolio role Growth Growth Stability
Growth profile GDP+ ~GDP ~GDP
Way forward Organic growth, Organic growth & Operational excellence

synergies & innovation innovation & efficiencies
Growth CAPEX Projects already

 
relevance implemented / on-stream
Market position Strong Strong Strong
Fact Book 2022 28

9 Strategy
39 Sustainability
LANXESS is ready to deliver!
Portfolio sharpened, champions established: Ready to deliver!


LANXESS significantly improved across various
dimensions 
Years to come: Harvesting synergies and delivering on
improved earnings and margin potential
Fact Book 2022 29

9 Strategy
39 Sustainability
Additional
value
opportunities
28
Fact Book 2022 30

9 Strategy
39 Sustainability
Engineering Plastics Joint Venture is a powerful additional

value driver
Rationale for Engineering
HPM is a strong business
Plastics JV
+ Among top 5 players globally + Very complementary regional
set-up
+ Reliability through backward
integration + Very complementary industry
exposure
+ Strong technology position in
PA6, PBT and Tepex + Strengthening technology and
sustainability position
+ Customer proximity via global
compounding network + Highly synergistic
 High auto exposure
 Most volatile business in
portfolio
Fact Book 2022 31

9 Strategy
39 Sustainability
Closing and carve-out process fully on track
Engineering  CEO: Calum MacLean - over 30 years in the chemical industry

Plastics JV Management
appointed
 Mixed management team: Senior executives from LXS and DSM as well
as an experienced external CFO
 Shareholders’ Committee to represent all parties to the transaction

 HPM carve-out completion by year end, DSM business already carved out
BU HPM Carve-out and

 Financing guaranteed by Western global banks
antitrust
 Large number of merger clearances already received (e.g., US, Chinese
& process
and Brazilian authorities)
 First cash-in of at least €1.1 bn in H1 2023 will support LXS deleveraging

Engineering Value
 Synergy realization is major value driver
Materials generation
 LANXESS to hold 35-40% in global player
Focus on cash-in and deleveraging while driving synergies and value upside!
Fact Book 2022 32

9 Strategy
39 Sustainability
Additional value drivers:

Strategic projects making progress
H1 H2
2023 2023
Lithium project Electrolyte project CheMondis
 Pilot plant with sufficient purity  Formulation in Saltigo plant  Platform grows exponentially
levels in operation since 12/2020 initiated
 Monetization products launched
 Additional optimization ongoing  Project teams in joint discussion
 In case of successful
 FEED* study underway, results ↯ China lockdowns slow progress
 monetization CheMondis will
expected H1 2023, investment open for external shareholders
decision to follow afterwards end of 2023 / beginning of 2024
All projects with good progress: potential additional upside for LANXESS
* Front end Engineering design study (FEED)
Fact Book 2022 33

9 Strategy
39 Sustainability
M&A
No M&A planned in the foreseeable future:

Focus on addressing and managing our weak spots!
32 PUBLIC
Fact Book 2022 34

9 Strategy
39 Sustainability
Lower CAPEX after completion of growth investment cycle and

HPM exclusion
Normalized
Growth investment cycle
phase
Maintenance CAPEX
1  €250-300 m new level
in €m
~500 (without HPM)
480 507
479  Previously €300-350 m
456
376 ~450
~400
2 Total CAPEX
2  ~€400 m as normalized level
1  In 2023 no major growth projects
initiated yet
2017 2018 2019 2020 2021 2022 incl. 2022 excl. 2023e
HPM HPM
Maintenance CAPEX Growth CAPEX
Lower CAPEX profile reflecting focus on lean assets
Fact Book 2022 35

9 Strategy
39 Sustainability
Working Capital outflow in 2022 mainly driven by energy and

raw material price inflation
W/C in €m
2,275
Increase of ~920
~€0.9 bn
1,891 -~200 ~600 1 ~70% price = ~€400 m
1,766 -~130
1,358
2 ~30% volume = ~€200 m
FY 21 Q1 22 Q2 22 Q3 22 W/C Portfolio FX Adjusted

FY 21 Q1 22 Q2 22 Q3 22 increase effect effect W/C effect
Substantial increase in Working Capital driven by price effects
W/C reflects Continuing Operations only
Fact Book 2022 36

9 Strategy
39 Sustainability
Operating cash relief from Working Capital expected
Development of W/C KPIs reflect inflationary environment Drivers for cash relief
[in%]
30 Price:
 Raw materials costs declining
25 since September 2022
W/C
20  Energy costs in Germany falling in
ratio
October to 2021 levels but still
15 volatile
10
Volume:
5  Logistic constraints expected to
ease in 2023
0
2016 2017 2018 2019 2020 2021 Q3 2022 Normalized
 Seasonal effect in Q4
W/C ratio
W/C ratio to normalize at ~20% of sales
Fact Book 2022 37

9 Strategy
39 Sustainability
Working on additional levers to improve cash flow longer-term
Δ Illustrative CF levers1
FCF building blocks Δ Illustrative CF levers*
One-time
effect
EBITDA pre
- Cash for exceptionals
- Taxes
EBITDA Less Less tax Δ NWC Less FCF
- Changes in Working Capital improvement exceptionals CAPEX improvement
- CAPEX
= Free Cash Flow
Higher Reduce Tax rate Sustainable CAPEX level
EBITDA exceptionals reduction W/C ratio of reduced to
to ~€30 m p.a. to ~26% ~20% ~€400 m
Solid cash flow generation potential of LANXESS medium-term
* Illustrative and all things equal One-time effect from relief in W/C once inflationary environment eases
Fact Book 2022 38

9 Strategy
39 Sustainability
The chemical industry supports the transformation towards a

sustainable society
Circular economy Renewable energy New mobility
With chemical recycling,

High-end materials enable New mobility solutions are
molecules can be recovered
sustainable energy the pathway to climate-
from waste and re-used
generation neutral mobility
infinitely
Fact Book 2022 39

9 Strategy
39 Sustainability
Sustainability is a business case and drives our economic and

strategic success
We drive sustainable solutions… … and see clear financial benefits
Societal needs which we can and want to fulfill, e.g.,  Energy-efficient production: Cost saving potential by
determination in addressing areas of sustainability risks
 Need for clean drinking water for an increasing world
population  Acceptance and reputation: Strategic investment
decisions by shifting into “tomorrow‘s markets” with
 Disinfection to prevent the spread of diseases growth and innovation potentials
 Contribute to the shift towards eMobility  Better, integrated decision-making: Position
ourselves with a foresighted business strategy and
thereby secure our financial base
 Higher employee retention and lower recruiting
cost: Healthier and happier workforce
Sustainability commitment as our license to operate
Fact Book 2022 40

9 Strategy
39 Sustainability
We offer extensive transparency on our commitment to

sustainability
We commit to several initiatives and frameworks…
… and we offer transparency on where we stand complying with standards and regulations
LANXESS
Background
Paper
LANXESS
ESG Data Factsheet
Fact Book 2022 41

9 Strategy
39 Sustainability
We will go climate-neutral by 2040
Our goal: climate-neutrality Ahead of EU regulation Three pillar approach

German
Global industry
trajectory trajectory4
6.500 -50% -60% -65% -80% -100% 1. Realize major impact projects
for climate protection
EU industry
100% based on 2. Decouple emissions and
Green Deal
3.200
2,7391
growth
2,3002
LANXESS
1,3002 3. Pursue technological
innovations
Neutral3
2004 2018 2021 2025 2030 2040 0%

1990 2004 2018 2030 2040 2050
Emissions based on Scope 1 + Scope 2, figures
rounded, in thousand tons CO2e Emissions based on Scope 1 + Scope 2
We are on track to achieve our targets
1Figure includes full year emissions from acquisition of Emerald Kalama Chemical (EKC). Figure for only 4 months of EKC amounted to approximately 2,591 kt; 2 Targets adjusted after communication of joint venture of
Business Unit HPM; 3 Climate-neutral: Less than 300,000 tons of CO2 equivalents (e) per year. These will be reduced through compensation measures; 4 Estimation based on AGORA Energiewende
Fact Book 2022 42

9 Strategy
39 Sustainability
We have recently enhanced our climate strategy with our new

“Net Zero Value Chain” program
We are one of very few Our impact
road
effect
Our effect
impact to today
Net Zero
today
today
today ("gate to gate")
chemical companies
with a validated SBTi Make use of sustainable raw materials
1.5° target  Launch of “Net Zero Sourcing” program
 Supply agreements on renewable raw materials
Our Scope 3 CO2e emissions (kt)
Transition to green logistics
-15% -40%  Increase transportation asset utilization
27,000
22,800  Optimize freight transport modes
16,500
Offer low-carbon and climate-neutral products
 Brand “Scopeblue” for low-carbon / circular products
Net Zero*  Transparency by certified carbon footprints
2015 2018 2030 2050
Emissions related to Scope 3. | 2030 target will be adjusted after HPM deconsolidation in 2023.
* “Net Zero” may include emission compensation measures
Fact Book 2022 43

9 Strategy
39 Sustainability
We have a clear strategy for sustainable water management
LANXESS Water Program
 Regular assessment of current and future water

stress* and specific withdrawal
 >90% of water withdrawal at sites without water
scarcity
 Four water risks sites** identified and measures
to reduce water withdrawal planned
 Global target: To reduce annual water

consumption by 2% despite organic growth
 Local targets: 15% absolute reduction of
water withdrawal until 2023 at water risk sites
* Water stress refers to the (lack of the) ability to meet human and ecological demand for freshwater. It also takes the quality and accessibility of water into account;
** Sites located in Nagda and Jhagadia (both India), Latina (Italy) and Qingdao (China)
Fact Book 2022 44

9 Strategy
39 Sustainability
Our product classification system identifies the share of

sustainable products in our portfolio
Sustainable products
85% of our products are sustainable  Outstanding sustainability performance
Energizer  Very low to low environmental impact
 Contribution to at least one SDG
 State-of-the-art sustainable products

Performer  Fulfill or exceed sustainability requirements
Evaluation criteria and sustainability dimensions  Low to medium environmental impact
environmental ▪ social ▪ economical ENV SOC ECO
Climate change  Do not (yet) fulfill all LANXESS

Water use and water risk Transitioner sustainability requirements
Support of the Agenda 2030  Active steering and improvement processes
Waste efficiency
Environmental risk  End-products* with sustainability concerns
Human health risk containing >0.1% critical substances
Demand trend Roadmap
Profitability  Roadmap process for sustainable
Legislative and reputational risk alternatives
2021 sales:
3% 12% 58% 27%
* Not considered as chemical end-products are chemical intermediates sold to chemical-industry customers.
Figures do not include figures from discontinued operations (Business Unit High Performance Materials).
Fact Book 2022 45

9 Strategy
39 Sustainability
We have a strong commitment towards diversity and inclusion
Success driven by personal commitment of every employee
 Further increase proportion of women in…

 management to 30%
 first level below Board of Management to 15%
 second level below Board of Management to 25%
 Have at least 30% female and 40% non-German
participants in corporate talent programs
 Further increase proportion of countries with flexible
working conditions
We are on track with achieving our targets and plan to further foster diversity and inclusion
Fact Book 2022 46

9 Strategy
39 Sustainability
We view social principles as major drivers for sustainable

success
Ambition: avoid all accidents Social principles are more than diversity indicators
2.3
 Commitment to ILO** convention and its principles for work
>-50%
 Initiatives fostering occupational health and safety, e.g., platform in place with
various offers around health and prevention measures
1.6
 Fair compensation and comprehensive benefits, e.g., offers beyond legal
1.0 0.9 1.0 requirements for (child-)care, maternity / paternity leave, pension, transition
into retirement and for different insurances
 Comprehensive concepts for employee qualification, e.g., reflected in high
ratio of apprentices hired after completing the training
2014 … 2019 2020 2021 … 2025  Close and regular collaboration with workers’ councils and labor unions
leading to avoidance of conflicts and strikes
LTIFR*: Accident rate per million hours worked
Our social principles are embedded in our Performance Culture
* LTIFR = lost time injury frequency rate, known as MAQ in Germany. Accident rate per million hours worked resulting in one workday or more lost following the day of the accident, calculated for all employees (including
temporary workers) at all sites; ** ILO = International Labour Organization
Fact Book 2022 47

9 Strategy
39 Sustainability
Our governance structure starting with the Supervisory Board

ensures strategic oversight
The Supervisory Board of LANXESS consists of

12 members:
Composition
6 represent the shareholders
6 represent the employees
All current shareholder representatives are

Independence independent
Broad competence profile to ensure specialist
>30% of the members of the Supervisory Board are knowledge and experience
Diversity women Chemical industry, international management,
corporate governance / compliance, strategy,
Tenure Maximum of 12 years
M&A, production, marketing & sale of chemical
Supervisory Board regularly assesses its effectiveness products, raw material procurement, energy &
Assessment as a whole and its committees
services, HR / codetermination, investor relations,
An age limit has been set following the completion of corporate financing, accounting and auditing, risk
Age limit the 75th year of life management, IT / digitalization and ESG
Fact Book 2022 48

9 Strategy
39 Sustainability
Sustainability management is actively driven from the top
CEO-led committee structure Board compensation linked to sustainability
Sustainability Committee
Matthias Zachert (CEO)
Entire board reviews and tracks quarterly the sustainability

performance and aligns on targets and action plans EBITDA
Short-term
variable
Sub-committees compensation
LTIFR
Fixed Variable Sustainability
Climate Health, Safety Value Chain People Stakeholder compensation compensation CO2e
emissions criteria
and and Circularity & and Expectations
Energy Environment Product Governance & Reporting Long-term
Stewardship Standards Stock variable
performance compensation
Each sub-committee is led by a member of the board of management and

coordinated by senior management
Fact Book 2022 49

9 Strategy
39 Sustainability
Leading ESG rating providers honor our performance
AA B-
A
BBB C
Convincing climate strategy Prime status Climate leader Top 10% in DJSI World
Ongoing improvement: water Top 8% Top 5% (11th year)
stress and chemical safety DJSI Europe (5th year)
We are rewarded for our efforts on sustainability that go beyond the must-haves
Fact Book 2022 50

9 Strategy
39 Sustainability
Our activities in 2021 accounted only for minor CO2e emissions,

hence only minor taxonomy-eligibility
Sales
EU taxonomy as one element of the European Union’s Green Deal 9%
 For alignment with EU taxonomy, assessment of*:

 Substantial contribution to one of six environmental objectives
CAPEX
 While doing no significant harm (DNSH) to any of the other objectives 2%
 As of the first reporting year, only eligibility with regard to the first two objectives (“climate change
mitigation” and “climate change adaptation”) has to be determined
without M&A
 Taxonomy focuses on sectors responsible for over 93% of European Scope 1 CO2e emissions 4%
 All other activities that do not have material CO2e emissions currently labeled as
taxonomy-non-eligible
Opex
9%
Positive signal: LANXESS only with minor share of taxonomy-eligible product portfolio Taxonomy-eligible
Taxonomy-non-eligible
* In addition, minimum safeguards for occupational health and safety and human rights must be guaranteed for each activity.
Figures do not include figures from discontinued operations (Business Unit High Performance Materials).
Fact Book 2022 51

9 Strategy
39 Sustainability
On course for a more sustainable environment
Sustainability at the core of our strategy
Creating measurable benefits for company, customers and society
Supporting a sustainable economy with activities and products
Fact Book 2022 52

9 Strategy
39 Sustainability
Further information and documents on

ESG can be found here
▪ ESG Equity Story

▪ Annual Report 2021
▪ Articles of Association of LANXESS AG
▪ Business Partner Code of Conduct
▪ Code of Conduct ▪ ESG Background Papers on:
▪ Compensation Report 2021 Climate, Water, Working at LXS
▪ Coporate Policy ▪ Position on Human Rights
▪ ESG Data Factsheet (KPI overview) ▪ Political activities
▪ Political positions
▪ Taxation Policy
Fact Book 2022 53

LANXESS Fact Book
2022
BUSINESS
Segments
Consumer Specialty
Protection Additives
Advanced
Intermediates
Consumer Protection I Specialty Additives I Advanced Intermediates
64 Flavors & Fragrances
69 Saltigo
Business Segment
Consumer
Protection
Fact Book 2022 55

69 Saltigo
Consumer Protection:
Segment of champions in niche markets
Among top 3 players >20%

in niche markets
EBITDA pre
Segment growth drivers: margin potential
Stricter regulations and
~5%
avg. growth
sustainability
Higher health awareness
High cash
Population growth and conversion
driven by asset light businesses
urbanization
Fact Book 2022 56

69 Saltigo
Portfolio of true specialty chemicals businesses driving growth
Material Protection Liquid
Flavors & Fragrances Saltigo
Products Purification Technologies
 A global leader in biocides  A leading manufacturer of a  A leading supplier in the field  One of the leading
for biosecurity and industrial wide range of flavors, of custom synthesis, global suppliers for the
consumer protection fragrances and preservatives providing state-of-the-art treatment and purification
 Used in a broad range of used in home and personal technologies and services of water and other liquids
care, food and feed
applications such as paints  End-markets in the
 Advanced technology  Manufacturer of ion
and coating, construction, agrochemicals,
platform guaranteeing exchange resins, adsorbers
animal disinfection, water pharmaceutical and
highest-quality solutions for and functional polymers
treatment, textile, personal specialty chemicals
care and energy our customers industries
Fact Book 2022 57

69 Saltigo
Secular growth in asset light business
Contribution to Group performance 20211 Sales by BU
SGO 2021 Pro-forma²

26% of Sales 34% of EBITDA MPP
F&F
LPT
History of sales, CAPEX and EBITDA (margin) 2019-20213

[€ m] [%]
2.000
2,000 25
Sales 1.515
1,515
1.500
1,500 1,243
1.243 20
EBITDA 1.050
1,050 21,4
21.4
1.000 18.9
18,9 18,2
18.2 15
CAPEX 1,000
EBITDA 500 198 266 275 10
margin
0 5
2019 -61 2020 -76 2021 -100
-500 0
Note: All references to EBITDA are pre exceptionals;

1 Restated operating segments (excl. HPM); 2 Pro-forma sales split including IFF-MC and EKC for full year; 3 2019 and 2020 figures have been restated based on reporting of subsequent year
Fact Book 2022 58

69 Saltigo
Material Protection Products – a global leader

in biosecurity, industrial biocides and consumer protection
Key facts* Sales by end-use 2021
 Sales: €500-1,000 m Others 5%
Chemical industry 5%
 Market growth: ~5% Food, healthcare and
Agriculture and consumer goods 29%
 Customers ~6000 animal care 14%
 Products: ~1,350
 Production: 14 sites Energy, natural resources
and industrial use 19% Construction 28%
 Research: 18 Technical Competence Centers
 Employees: ~1,100
 Market position: Among top 3 biocides companies Sales by region 2021
 Competitors: Arxada, Thor, BASF, Ecolab Asia-Pacific 29%
 Business: One of the global leaders in biocides for
wood protection, construction, disinfection, Americas 41%
energy, personal care and water treatment
Global customer service organization
provides leading technical and
regulatory support EMEA 30%
* Key facts include the acquisitions of Theseo, Intace and IFF Microbial Control
Fact Book 2022 59

69 Saltigo
Compelling business model combining innovative products and

regulatory know-how
Business catalysts Unique capabilities
 Fully integrated
 Increased hygiene player from actives
requirements driving to customer
demand for solutions
disinfectants  Registration
 Global virus spreads competency with
and trend to use leading regulatory
less antibiotics in team
animal farming  IP rich studies and
 Growing population, registrations
urbanization  Global footprint and
customer proximity
Fact Book 2022 60

69 Saltigo
Strong international set-up to serve global demand for microbial

control solutions
Wietmarschen (DE)
Global service Hull (UK)
Dortmund (DE)
Sudbury (UK) Dormagen (DE)

 Production sites in Germany, Krefeld-Uerdingen (DE)
Pittsburgh, PA (US)
USA, France, India, Singapore,
Midland, MI (US) Leverkusen (Germany)
UK and Brazil
Leiden (NL) Cologne (DE)
 Local technical support – Institute, WV (US)
Technical Competence Centers Wilmington, DE (US)

Qingdao (CN)
in China, Germany, France, Memphis, TN (US)
Kawasaki (JP)
Mexico, Brazil, UK, Singapore, St. Charles, LA (US)
Laval (FR)
Changzhou (CN)
USA, India, Saudi Arabia,
Shanghai (CN)
Netherlands and Japan Léon (MX) Kaust (SA)
Jhagadia (IN)
 Global and local experts Singapore (SG)
Jarinu (BR)
for regulatory affairs
Descalvado (BR)
 Local sales offices with dedicated
MPP staff and carefully selected Barueri (BR)
distribution partners Headquarter Technical Competence Center

Production Site
Fact Book 2022 61

69 Saltigo
The value chain comprises both production and regulation, which

constitutes our core strength
Value chain
Raw materials Active ingredients Formulations Solutions Customers
PRODUCTION
Active ingredient Regional Technical expertise &

synthesis formulation sites Branding
Own data /
Formulation registration Regulatory support
active registration
REGISTRATION
Fact Book 2022 62

69 Saltigo
Strong regulatory expertise to meet trend towards tighter

chemical regulation
Key market developments
 Legislation: Dedicated regulatory rules far beyond REACH*

 Resources: Lengthy process / high investments in new registrations
 Requirements: Global regulatory systems continuously evolve
MPP unique selling value proposition
Regulatory expertise: With ~50 senior regulatory

experts, one of the world’s largest teams
Active ingredient
Data creation: ~40% of CAPEX for data
creation and long-term data access Active ingredient Formulation End-product
Registrations: Active ingredient

~100 active ingredient registrations
Registration Registration
~7,500 formulation registrations data data
* REACH = “Registration, Evaluation, Authorisation and Restriction of Chemicals“
Fact Book 2022 63

69 Saltigo
Flavors & Fragrances – a global player with a wide range of

products for personal care applications
Key facts Sales by end-use 2021
 Sales*: €500-1,000 m Personal care 21%
Others 12%
 Market growth: >GDP Construction 7%
 Products: >200 Food and Agriculture and feed 16%

beverage 13%
 Customers: >1,000 customers in >100 countries
 Production: 5 sites in 5 countries Home care 15% Industrial 16%
 Employees: >750 FTE
 Market position: Among global top 3 players Sales by region 2021
 Competitors: Eastman, Valtris and select Chinese Asia-Pacific 24%
players: Whuhan Youji, Hongrun, Dongda
 Business: Benzoates (preservatives for food, feed,
home and consumer care markets),
EMEA 43%
Flavors & Fragrances
Americas 33%
* Normalized FY 2021
Fact Book 2022 64

69 Saltigo
Positioned to benefit from underlying growth trends in flavors

and fragrance business
 Highest purity
 Upcoming middle standards and full
class willing to pay spectrum of aroma
premium for fragrances
upmarket products
 Broad portfolio of
 Preference for sustainable
“healthy”, natural solutions
ingredients and
sustainable products  Top-notch technical
and regulatory
 Tightening product expertise
safety and
environmental  Global footprint and
customer proximity
Fact Book 2022 65

69 Saltigo
Lean production network across the world
Global footprint in benzoates Kalama, WA (US)
Vancouver, WA (US)
Krefeld-Uerdingen (DE)
 Advanced technology Widnes (UK)
Cologne (DE)
platform guaranteeing Botlek (NL)
highest quality and purity
Rotterdam (NL)
standards
Paris (FR)
 Sole benzoate producer in

Thane (IN)
NORAM and largest in Hong Kong (HK)
Europe Nagda (IN)
 Strong global R&D set-up

driving innovation and
adapting to changing market Headquarter
Regional
Production Site
Technical
Sales Office Competence Center
conditions
Fact Book 2022 66

69 Saltigo
With our broad product portfolio, BU F&F covers a wide range of

customers and end-applications
Flavors & Fragrances Benzoates
 Preservatives and antimicrobial activities for food

 Flavors and fragrances for food and beverage, and beverage, personal care, home care, animal
Applications: personal care, home care, animal feed Applications: feed and agriculture
 Agrochemicals and pharma intermediates  Inhibition / control growth of yeasts and molds
 Maintain freshness and formulation integrity
Exemplary  Cinnamic aldehyde Exemplary  Sodium benzoate

products:  Peach lactone products:  Potassium benzoate
 Kalaguard®
Brands:  Purolan® Brands:  SOLBROL®
 Purox®
Fact Book 2022 67

69 Saltigo
Our aroma chemicals cover a broad spectrum of fragrances using

the highest industry standards
Floral
C-9 Aldehyde – rose, flower-wax, aldehyde Amyl cinnamic aldehyde – jasmine, cocoa, fatty
Florosol – muguet, lilac, cyclamen Hexyl cinnamic aldehyde – green, lily, jasmine
Lilestralis® Pure – fresh, green, light Benzyl acetate – sweet floral fruity jasmin fresh
Spicy / Cinnamon
Cypriol – sweet, balsamic-floral, oriental Cinnamic alcohol – spicy, honey
Cyprinal – warm, cinnamon, balsamic Cinnamic aldehyde – cinnamon bark, sweet spice, oriental
3 Phenyl propanol – balsamic, spicy, honey, lilac, hyacinth
Earthy
Osyrol® – sandalwood, floral
Vetimoss® – forest, damp wood, vegetation
Fruity
Azuril – powerful, citrus, ozone, linen C-8 Aldehyde – orange peel, aldehyde
C-12 Lauric aldehyde – citrus, floral, soap C-10 Aldehyde – citrus, orange peel, fatty
C-6 Aldehyde – citrus, apple, fresh, grassy Peach lactone – sweet, peachy, apricot, creamy
 Other
Benzyl benzoate – nearly odorless fixative in gum / Benzyl alcohol – fragrance fixative for chewing gum /
confectionary confectionary
Benzaldehyde – almond, cherry Methyl benzoate – wintergreen, camphoraceous, phenolic
Fact Book 2022 68

69 Saltigo
Saltigo – a leading custom manufacturer for the agro and fine

chemicals markets
 Sales: €500-1,000 m
Fine chemicals 14%
 Market growth: ~5%  Performance chemicals
Agriculture 86%
 Customers: Batch processes up to 5,000 tons  Pharma
for ~300 customers
 Products: >400
 Production: Unique production network with 10 plants
in Dormagen and Leverkusen (Germany)
 Research: World-class R&D center
 Employees: ~1,200 Sales by region 2021
 Market position: One of the global leaders
in agro custom manufacturing Asia-Pacific 6%
 Competitors: CABB, Deccan Chemicals, Lianhe, inter alia

Americas 22%
 Business: Exclusive synthesis for active ingredients
notably for the agro industry, pharma and
specialty chemicals like Saltidin® (insect EMEA 72%
repellent) and from 2022 onwards electro-
lytes for Li-ion batteries
Fact Book 2022 69

69 Saltigo
Custom manufacturer of choice for leading agrochemical

companies
 Agrochemical
molecules are
becoming more  Multi-step syntheses
complex with challenging
chemistry is core
 Products with low competence
toxicity profile gaining
importance  Broad expertise in
process development
 Increasing outsourcing and analytics
quota to custom
manufacturers  Versatile technology
base located in
 Less arable land integrated chemical
(climate change) – parks
higher efficiency
required
Fact Book 2022 70

69 Saltigo
Saltigo’s unique, fully integrated production network serves blue

chips with global reach
Key features
German hub
72%
 Fully integrated production network, Leverkusen (DE)
unique in industry
22% Dormagen (DE)
 Multi-purpose and technology 22%
12%
specific plants Direct End-
sales use
 Very broad permits and chemistries Direct End-
sales use 24%
 All business functions concentrated
6%
on one site, allowing high speed and
Direct End-
flexibility 42% sales use
Global reach
 Majority of products is sold to blue 0%
Direct End-
chips sales use
 Latin America and Asia as main

end-use regions Headquarter Production Site
Fact Book 2022 71

69 Saltigo
Saltigo focusses on complex, high value-add specialties,

providing important value for its customers
Top part of the value chain Customer innovation Value for customers
Saltigo focus
Market Actives
approach Advanced molecules
Simple intermediates  Saltigo‘s manifold exper-  Thorough understand-

tise supports innovation ing of customer needs
Raw materials  90% of portfolio custom  Tailored service offering
manufacturing
Core
competencies Chemical expertise + Technology platform + Customer focus
Core competencies as basis to serve high-value market segments
Fact Book 2022 72

69 Saltigo
Saltigo with thorough service offerings for innovative growth

markets
New innovation Market approach
eMobility +
Li-ion batteries Cooperation with one of the Formulation of high-purity
global market leaders Tinci electrolytes
Biologicals  Saltigo uses new technology “metathesis*” for innovative crop

protection applications such as pheromones
“Green“ crop
protection  Metathesis also used in other specialty chemicals growth markets
Saltigo leverages its competence to expand into new strategic segments
* Nobel-prize winning chemistry (2005), advanced technology for the stereoselective synthesis of olefines
Fact Book 2022 73

69 Saltigo
Liquid Purification Technologies – a leading global solution

provider for liquid purification
 Sales: <€500 m Chemical industry 16%
Food, healthcare and
 Market growth: >5%
consumer goods 47%
 Customers: >1,500
Energy, natural resources
 Products: >160 and industrial use 37%
 Production: 3 sites
 Research: 6 Technical Competence Centers globally
 Employees: ~500 Sales by region 2021
 Market position: Among global top 3 players in overall ion Americas 22%
exchange resins business
 Competitors: DuPont, Purolite and Mitsubishi Chemicals,
inter alia
EMEA 51%
 Business: Ion exchange resins, adsorbers and
Asia-Pacific 27%
functional polymers
Fact Book 2022 74

69 Saltigo
Leading solutions provider for purification of water and other

liquids
 Competence in
 Growing population, water treatment,
urbanization and liquid purification
water scarcity and recycling
 Increasing consumer  Global sales
awareness for water footprint and
quality customer proximity
 Increasingly stricter  Innovation and
regulations for service labs
drinking and providing tailored
industrial wastewater products and
services
Fact Book 2022 75

69 Saltigo
LPT with strong global presence for ion exchange resins and
adsorbers
A reliable partner for our
customers – worldwide
Bitterfeld (DE)
 Global presence via production
network, innovation laboratories, Cologne (DE)
warehouses and sales force Birmingham, NJ (US) Toyohashi (JP)
Leverkusen (DE)
 Three state-of-the-art production
sites in Germany and India with
unique manufacturing Jhagadia (IN)
technologies for high-end
applications
 Worldwide sales offices and
strong global distribution network
 Innovation and service labs to
provide tailored products and
services
Technical
Headquarter Production Site
Competence Center
Fact Book 2022 76

69 Saltigo
Versatile specialists – comprehensive product portfolio provides

advanced solutions
Products and brands Customer industries
 Ion exchange resins, adsorbers

and functional polymers for use
in many industries and
Mining and metallurgy Food and beverages eMobility
applications
 Granular iron oxide adsorbers Semi-conductor Household Power generation
for water treatment
Municipal water treatment Chemical and petrochemical Drinking water
 Calculation and design software

for the dimensioning of water
treatment systems
Paper and pulp Pharma and biotech Photovoltaic
Fact Book 2022 77

69 Saltigo
LPT’s broad and unique product portfolio is well-positioned

within the ion exchange resins value chain
Equipment and
Value chain
service providers
Ion exchange resins
Raw material suppliers
producers
End-users / applications
 Complete product portfolio of ion exchange resins best Additional services

serving customers in multi-level production processes  Global technical service with
 Unique manufacturing technologies for high-end comprehensive expertise
solutions
applications:  LewaPlus® design software

Lewatit®
LPT
 monodisperse polymerization for products with  Regulatory competence and

enhanced application properties support
 PTI* process for highly selective resins
Bayoxide®  Iron oxide adsorbers as complementary technology
* PTI = Phtalimide chemistry
Fact Book 2022 78

95 Rhein Chemie
Business Segment
Specialty
Additives
Fact Book 2022 79

95 Rhein Chemie
Specialty Additives:
A leading additives player in niche markets
Among top 3 players Up to 20%

in niche markets
EBITDA pre
margin potential
Segment growth drivers: ~GDP
growth
Global sales footprint
Integrated value chains
Attractive product
Strong US asset base characteristics:
small volume, high impact
Fact Book 2022 80

95 Rhein Chemie
World-class player in several highly attractive additives niches
Polymer Additives Lubricant Additives Business Rhein Chemie
 Polymer Additives offers a broad  Leading lubricants additives player  World’s largest rubber additive
portfolio of brominated, as well as with strong industrial focus and provider offering chemicals,
phosphorus flame retardants, highly specialized and balanced specialty chemicals and
plasticizers, colorants and other portfolio to serve growing end- processing aids for the rubber
additives and intermediates markets industry
Fact Book 2022 81

95 Rhein Chemie
Balanced portfolio of leading additives businesses
Contribution to Group performance 2021* Sales by BU 2021*
BU LAB
38% of Sales 40% of EBITDA BU PLA
BU RCH
History of sales, CAPEX and EBITDA (margin) 2019-2021**

[€ m] [%]
2.500
2,500 2.295
2,295 25
1,965
1.965 1.965
1,965
Sales 2.000
2,000 18,0
18.0 20
EBITDA 1,500 14,1
14.1 14,1
1.500 14.1
CAPEX 15
1,000
1.000
EBITDA 353 278 323 10
500
margin
0 5
-500 2019 -120 2020 -120 2021 -139 0
Note: All references to EBITDA are pre exceptionals

* Restated operating segments (excl. HPM); ** 2019 and 2020 figures have been restated based on reporting of subsequent year
Fact Book 2022 82

95 Rhein Chemie
Polymer Additives – a major global player in flame retardants and

plasticizers serving diverse end-markets
Key facts Sales by end-use
end use 2021
 Sales: €1,000-2,000 m Mobility 4%
Agriculture and animal
 Market growth: ~GDP care 7% Chemical Industry 37%
 Customers: ~1,800 in more than 100 countries Food, healthcare and
consumer goods 10%
 Products: More than 500
 Production: 9 sites in 5 countries
 Research: 7 Technical Competence Centers in and industrial use 21% Construction 21%
North America, Europe and Asia
 Employees: ~1,000 Sales by region 2021
 Market position: Among top 1-3 additives companies
 Competitors: ICL, Albemarle, Wansheng, Yoke, Asia-Pacific 31%
Eastman, Clariant
 Business: Polymer Additives offers a broad portfolio
of brominated as well as phosphorus EMEA 36%
flame retardants, plasticizers and other
Americas 33%
products
Fact Book 2022 83

95 Rhein Chemie
A leading player and innovation driver for high-quality flame

retardants
 Tightening regulations
and increasing  Unique backward
sensitivity regarding integration into
toxicity and elemental bromine
sustainability
 Strategic focus on
 Flame retardant market developing modern
moving towards longer flame retardants
chain polymeric and
reactive compounds  Sustainable, phthalate-
free plasticizer
 Increasing demand for
flame retardancy in  Stabilizers extending
battery and eMobility prolonged product-life
applications
Fact Book 2022 84

95 Rhein Chemie
Polymer Additives –
a truly global player with close customer proximity
Headquarter: Cologne, Germany
Botlek (NL)
Global production footprint:
 9 production sites in 5 countries Trafford Park (UK) Leverkusen (DE)
Global Technical Competence Cologne (DE)

Center network: Naugatuck, CT (US)
Shanghai (CN)
 Leverkusen, Germany Kalama, WA (US) Mannheim (DE)
 Mannheim, Germany El Dorado, AR (US)

Epierre (FR)
 Trafford Park, UK
 Naugatuck (CT), and Charleston, SC (US)
El Dorado (AR), and Kalama (WA), Pittsburgh, PA (US)
USA
 Shanghai, China
Strong commercial presence:
 Cologne, Germany
 Pittsburgh, PA, USA
Regional Technical
 Shanghai, China Sales Office Competence Center
Fact Book 2022 85

95 Rhein Chemie
Polymer Additives provides indispensable solutions

for modern life
Flame retardants Sustainable plasticizers Polymer stabilizers
Safety solutions for sustainable, Phthalate-free plasticizer solutions that LANXESS’ stabilizers extend the
climate-efficient construction are safe in human contact or food lifespan of products by up to three fold
products and materials Phthalate-free plasticizer solutions for – allowing the use of these materials
Safety solutions for eMobility adhesives and sealants for in critical applications
construction, packaging and Prolonged use phase contributes to
light-weight manufacturing enhanced life-cycle performances of
end-products
Disflamoll®, Reofos®, Levagard®, Mesamoll® , K-FLEX®, Stabaxol® works effectively against

Firemaster®, Emerald Innovation® Ultramoll®, Adimoll® hydrolysis in a wide range of polymers
Fact Book 2022 86

95 Rhein Chemie
Bromine derivatives –
extracting value from bromine by pursuing the whole value chain
Bromine reserves Elemental bromine Bromine derivatives End-use
Construction E&E
Bromine well,
El Dorado, Arkansas, USA Chlorine
Reserves for >70 years
Flame retardants
and steam
Elemental bromine
production El Dorado,
Arkansas, USA Oil Mercury
Biocides
drilling control
Brine
fluids Sodium- / calcium
bromides
Agro Pharma Industrial
Merchant sales*
HBr** / alkyl bromides
Products sold by LANXESS

* Roughly 20% of total bromine volume; ** HBr – hydrogene bromide
Fact Book 2022 87

95 Rhein Chemie
Providing key raw materials and additive solutions for Li-ion

batteries and electric vehicles
PLA activities in lithium-ion batteries and eMobility Applications PLA products
Lithium-ion
battery cells
Phosphorus
intermediates and lithium
Cathodes
salts* for manufacturing of
cathode materials
Phosphorus
intermediates and
lithium salts* as key
Electrolytes materials for LiPF6
Flame retardants for
ePowertrain and safer electrolytes
charging
Flame retardants for
polymers in automotive
Polymer components and E&E applications
Orange dye / pigment
for HV components
* In cooperation with Standard Lithium (SLI), subject to proof of concept | Pictures: Adobe Stock
Fact Book 2022 88

95 Rhein Chemie
Lubricant Additives Business – a leading specialty solutions

provider to the global lubricants value chain
 Sales: €500-1,000 m Others 5%
 Market growth: ~GDP Aerospace, marine and industrial use 46%
 Customers: ~800 in more than 120 countries and rail* 11%
 Products: ~660
 Production: 11 sites Chemical industry 14%

Mobility (others) 24%
in North America, Europe and Asia
 Employees: ~800
 Market position: Among Top 3 lubricant additives Sales by region 2021
companies
 Competitors: DIC, Exxon, BASF, Vanderbilt, Lubrizol, Asia-Pacific 20%
Afton, ICL
 Business: Leading specialty solutions provider to the Americas 44%
entire global lubricants value chain.
Highly specialized product portfolio with
EMEA 36%
strong industrial focus serving into growing
end-markets
* Mostly Aerospace sales – part of Mobility segment
Fact Book 2022 89

95 Rhein Chemie
Strong focus on high value-add industrial lubricant solutions
 Regulations drive  Unique backward

demand for eco-friendly integration
solutions, fuel economy  Strong complementary
and emissions product portfolio with
 Increasing performance cross-selling potential
requirements for long  Premium products
lasting use meeting highest
 High safety standards
requirements of  Long track record of
customers in critical providing technical
applications expertise to customers
Fact Book 2022 90

95 Rhein Chemie
Lubricant Additives Business – global setup
Headquarter: Shelton (CT), US

Naugatuck, CT (US)
Manufacturing: Shelton, CT (US) Kallo (BE)

Fords, NJ (US) Manchester Qingdao (CN)
 11 production sites in 7 countries
East Hanover, NJ (US) (UK) Nantong (CN)
Technical Competence Centers: Cologne (DE)
West Hill (CA)
 Naugatuck (CT), USA Elmira (CA) Shanghai (CN)
Mannheim (DE)
 West Hill, Canada
Latina (IT)
 Mannheim, Germany
 Shanghai, China Kaohsiung (TW)
Global sales with regional footprint:

 Cologne, Germany
 Shelton (CT), USA
 Shanghai, China
Regional Technical
Sales Office Competence Center
Fact Book 2022 91

95 Rhein Chemie
Lubricant Additives Business with strong focus on high value-

add industrial lubricant solutions
Well-diversified and specialized lubricants portfolio A leading specialties player
Sales of Business  Highly diversified end-market

Unit Lubricant Additives
split with focus on industrial
(illustrative)
Commodities ~20% lubricants
 Strong expertise in high
value-add specialty lubricants
Auto-
motive  Leading positions in mid-sized
markets and niche segments
General  Automotive exposure well-

industry balanced with specialty
lubricants for premium
aerospace, marine, rail and
Specialties ~80% other niche mobility applications
Fact Book 2022 92

95 Rhein Chemie
Uniquely integrated lubricant value chain from synthetic

basestocks to lubricant additives, packages and finished fluids
Lubricant value chain from LANXESS  Unique backward integration
 Strong complementary
product portfolio with
Basestocks and cross-selling potential
Additives Packages* Finished fluids
intermediates
 Premium products meeting
 Antioxidants  Corrosion inhibitors  Aviation fluids
highest standards
 High viscosity PAO
 Detergents  Specialties  Fire-resistant
 Specialty esters
hydraulic fluids
 Long track record of
 DPA  Extreme pressure  Industrial packages
 Specialty greases
providing technical expertise
 Anti-wear
to customers
 Striving for innovation
Peers cover parts of the value chain and technology
Components Formulated products
leadership
* Technical term for formulations / mixtures of different additive components
Fact Book 2022 93

95 Rhein Chemie
New mobility as an opportunity
Innovation projects
Status
 New fluids with superior corrosive, thermal and

EV electrical properties required for eDriveline
driveline fluids  Wear protection and package development is
key competency of LAB
 Immersion cooling fluids enable fast-charging of

electric vehicle batteries by removing excess
Immersion heat from battery cells during charging process
cooling fluids  LAB offers a range of cooling fluids, including
phosphate esters, that are non-conductive and
highly flame resistant
 Additives required to improve electrolyte

Electrolyte stability, protect cathode against overcharge
additives  AO chemistry is key competency of LAB
Under development
Fact Book 2022 94

95 Rhein Chemie
Rhein Chemie – high-quality rubber additives products

and solutions for mobility
 Sales: €500-1,000 m and ind. use 3% Others 1%
 Market growth: ~GDP Food, healthcare and
consumer goods 4%
 Customers: >1,200 in more than 70 countries Chemical
Mobility 71%
 Products: >1,500 Industry 21%
 Production: 14 sites
globally
Sales by region 2021
 Market position: A leading market position Asia-Pacific 29%
in main businesses
 Competitors: Sennics, Sunsine, SI Group
EMEA 40%
 Business: Solution provider for additives
in rubber
Americas 31%
Fact Book 2022 95

95 Rhein Chemie
Highest quality in rubber additives and solutions
 Global presence and

customer proximity
 Globally increasing
demand for mobility  Leading
competence in
 Stricter enforcement developing
of environmental tailored solutions
standards
in developing  Innovative products
countries contributing to
sustainability along
the product life-cycle
Fact Book 2022 96

95 Rhein Chemie
Worldwide presence and customer proximity
Headquarter: Mannheim, Germany Kallo (BE)

Krefeld (DE)
Cologne(DE)
Production Sites Leverkusen (DE)
Chardon,
OH (US) Brunsbüttel (DE)
 14 production sites in 8 countries Qingdao (CN)
Technical Competence Centers Bushy Park, Toyohashi (JP)

SC (US)
Mannheim (DE)
 5 Technical Competence Centers
Little Rock,
in Argentina, China, Germany, AR (US)
and USA
Jhagadia (IN)
Sales Offices
Porto Feliz (BR)
 Worldwide sales offices of
LANXESS and local distributors Merlo (AR)
Burzaco (AR)
Technical
Competence Center
Fact Book 2022 97

95 Rhein Chemie
Broad portfolio of rubber additives for all steps in value chain and
critical product properties
Process value chain synthetic rubber products
Compounding Forming Curing Finishing
Pre-dispersed and functional additives

Raw materials
Synthetic rubber
Processing promoters
Customer
Release agents and marking paints
Bladders
Antioxidants and
antiozonants
Functional additives
Fact Book 2022 98

108 Inorganic Pigments
Business Segment
Advanced
Intermediates
Fact Book 2022 99

Advanced Intermediates: Powerful positions and assets create

strong foundation for LANXESS growth
Among top 3 players 16-18%

in Western hemisphere
EBITDA pre
margin
Segment growth drivers: ~GDP
Integrated asset base growth
Broad customer end-use split Solid cash

Technology and process conversion
leadership providing stable base for
LANXESS growth
Fact Book 2022 100

Advanced Intermediates:
LANXESS is an important manufacturer of intermediates
Advanced Industrial Intermediates Inorganic Pigments
 One of the world’s leading manufacturers of  A leading global manufacturer of inorganic iron and
high-quality industrial intermediates such as chromium oxide pigments for the coloring of
benzene- and toluene-derivatives, amines, construction materials, coatings, plastics and for
polyols, inorganics and organometallics technical applications
 Competitiveness through an integrated  Pigments available in red, yellow, green, brown, black
production network with resilient business and many shades in-between
in the agro and chemicals industries
Fact Book 2022 101

Advanced Intermediates:
Financials demonstrate considerable business resilience
Contribution to Group performance 2021* Sales by BU 2021*
BU AII
BU IPG
32% of Sales 41% of EBITDA
History of sales, CAPEX and EBITDA (margin) 2019-2021**

[€ m] [%]
2.500
2,500 2.251
2,251 25
Sales 1.949
1,949
2.000
2,000 1.629
1,629 20
EBITDA 1,500
1.500
CAPEX 17,0
17.0 19.0
19,0 17,1
17.1 15
1,000
1.000
EBITDA 383 309 333 10
500
margin
0 5
-500 2019 -161 2020 -112 2021 -119 0
Note: All references to EBITDA are pre exceptionals;

* Restated operating segments (excl. HPM); ** 2019 and 2020 figures have been restated based on reporting of subsequent year
Fact Book 2022 102

Advanced Industrial Intermediates – one of the world‘s leading

suppliers of high-quality industrial chemicals
Construction 11%
 Sales: €1,000-2,000 m Chemical industry 25%
 Market growth: 3% and industrial use 13%
 Customers: ~1,600
 Products: ~110 Mobility 14% Agriculture and
animal care 22%
 Production: 7 sites in 3 countries Food, healthcare and
consumer goods 15%
 Market position: Strong positions in various Sales by region 2021
intermediates markets Asia-Pacific 17%
 Competitors: Yangnong, Aarti, Honshu, Deepak,
Tsaker and Panoli, inter alia
 Business: One of the world’s leading Americas 18% EMEA 65%
manufacturers of high-quality
industrial intermediates
Fact Book 2022 103

Integrated value chain based on technology competence and

production network
 Stable growth by  Integrated, proprietary

balanced, broad processes in right-
customer market scaled plants in an
asset network structure
exposure
(“Verbund”)
 Population growth,  Technology and
urbanization and production competence
increasing standard of in managing a complex
living production network
 Resource efficiency  One of the leading

and regulatory suppliers worldwide
environmental and leadership in
programs Europe
Fact Book 2022 104

A global footprint with sites in China, Germany, India and the US

to serve worldwide demand
Headquarter: Cologne, Germany Brunsbuettel (DE)
Production Sites Krefeld-Uerdingen (DE)

Bergkamen (DE)
 7 production sites in 3 countries Liyang (CN)

Leverkusen (DE)
Pittsburgh, PA (US)
Sales Offices Shanghai (CN)
Dormagen (DE)
 Salles offices of LANXESS in
major regions globally Cologne (DE)
Baytown, TX (US)
Thane (IN)
Regional
Sales Office
Fact Book 2022 105

Providing chemical intermediates for a wide range of applications
Inorganic acid Polyols and

Aromatic network Organometallics
and amines oxidation products
Key applications
 Agrochemicals  Agrochemicals  Polyester resins  Catalysts for polyolefins,
 High-tech plastics  Advanced polymers  Coatings elastomers and linear alpha
olefins
 Chemicals  Plasticizers
 Fine chemicals
 Building material additives
Main intermediates
Chlorobenzenes, Chlorotoluenes, Hexanediol, Trimethylolpropane, Aluminiumalkyl co-Catalyst
Amines, Hydrofluoric acid, Thionyl
Cresols, d / l-Menthol, Adipic acid, Maleic anhydride, components, Aluminoxane
Chloride, Hydrazine hydrate
Nitrotoluenes, Toluidines, Phthalic anhydride, Calcium Activators, Silane Stereomodifiers,
Monoisocyanates formate Magnesiumalkyl
Fact Book 2022 106

Highly competitive value chain based on technology and

production network
Market and technological leadership Highly competitive production platform
Benzene
End-markets
Processes
Processes
Toluene
materials
Products
Products
Organo-
Raw
metallics Fluorspar
Aromatic Inorganic
Polyols and
Cyclohexane
oxidation
network acids
products
Metals
Chemicals market
LANXESS  Unique integrated manufacturing network (“Verbund”)

>30% >20% >15%
market share
 Lean cost structure
Efficient, resilient, expandable
Bubble sizes represent sales
Fact Book 2022 107

Inorganic Pigments – iron oxide market leader serving diverse

applications in global markets
 Sales: €500-1,000 m Others 4%
 Market growth: 2% Energy, natural resources

and industrial use 8% Construction 70%
 Customers: ~2,500
 Products: ~1,000 Chemical
industry 18%
 Production: Production sites on five continents
with a capacity of ~380,000 t/a
 Market position: One of the leading position in iron oxide
pigment production and all target industries
 Competitors: Venator, Ferro and selected Chinese
players: Cathay, Hyrox, Yuxing, inter alia Asia-Pacific 18%
 Business: Among the leading manufacturers of

inorganic iron oxide pigments with largest EMEA 49%
own synthesis production capacity ensuring
a reliable global supply; over 100 color Americas 33%
shades in various delivery forms
Fact Book 2022 108

Shaping the iron oxide market with our unique capabilities
 Globally leading
environmental
 Population growth standards as
and urbanization / competitive edge
construction
 Leverage
 Supplier into lithium economies of scale
iron phosphate (LFP) with German
batteries production
 Broad end- backbone
application range of
 Outstanding light
inorganic pigments
and heat stability
 Wide range of colors
Fact Book 2022 109

Inorganic Pigments – a truly global player with synthesis plants

and blending sites around the world
Global asset network
Branston (UK)
 Production sites on five
Ningbo (CN)
continents
 Largest global production
capacity of ~380,000 t/a Burgettstown,
PA (US)
 Krefeld-Uerdingen is the heart of Vilassar de Mar (ES)
the LANXESS pigment business
with over 90 years of experience
in iron oxide pigment production
Sydney (AU)
 Continuous investments
into capacity expansions Porto Feliz (BR)
and advanced technologies

 Globally leading environmental
standards as competitive edge Synthesis site: Blending site:
Headquarter production of raw pigments further value adding by mixing and / or milling;
production of special color shades
Fact Book 2022 110

IPG focusing on high-quality synthetic iron oxide and chromium

oxide pigments for various applications
Segmentation of inorganic pigment market
Inorganic pigments
LANXESS
IPG focus focus areas
Products
 Main product groups:

titanium dioxide, effect  Synthetic iron oxide pigments
pigments, carbon black  Synthetic chromium oxide pigments Chromium oxides
and iron oxides
Iron oxides
Others
IPG focus Carbon black*
 Wide range coloring
Color
(black, white, red, blue,  Earth tones: red, yellow, black and blends
green, etc.) with more  Green
natural color shades
Effect pigments Inorganic
pigments
Applications
 Coloring: construction, paints, coatings, paper, plastics, printing inks

Titanium dioxide
 Technical applications: water purification, toner, catalysts, rubber, brake
linings, etc.
Source: internal analysis; split estimation based on market values; * Including only carbon black for pigmentary applications (~93% used for rubber-applications)
Fact Book 2022 111

Inorganic pigments are used for coloring and various technical

applications
Products and brands Color applications
 Iron oxide pigments (red, yellow, brown, black)

 Chromium oxide pigments (green)
 LANXESS IPG main brands:
Technical applications
Fact Book 2022 112

LANXESS Fact Book
2022
FINANCIALS
Consumer Protection I Specialty Additives I Advanced Intermediates 114 Financing
121 Share in Polymer
Joint Venture
124 History
Conservative financial policy and centralized risk management
 Centralized management of all relevant risks

 Liquidity and refinancing
 Foreign exchange, interest rates and commodity risk
 Counterparty risk
 Customer credit risk
 Insurances
 Pension risk management
 Committed to solid investment grade rating
Our active risk management aims at the reduction of financial and operational volatilities
Fact Book 2022 114

Joint Venture
124 History
Shareholders benefit from rising dividend
A reliable income stream for investors
[€]
+5% Dividend policy
1.05  LANXESS has been pursuing

1.00 1.00 1.00 a consistent dividend policy
0.95
0.90 for years
0.85
0.80
0.70 0.70  Our goal remains to increase
0.60
the dividend each year or at
0.50 0.50 0.50 0.50
least to keep it at a stable level
0.25
2006 2009 2012 2015 2018 2021
Fact Book 2022 115

Joint Venture
124 History
Funded status of defined pension obligation
Pension debt actively and well managed*

Funded status
 Group wide funding ratio
improved to 85% 57% 58% 58% 69% 85%
 Lower pension obligations
due to increased discount rates
and prudent asset management
2,752
 Continued active risk 2,557 2,616
management (e.g., inflation 2,297
hedging, tail risk hedging) 1,806 1,882
supports asset performance 1,494

1,599 1,602
1,308
 On-going monitoring and
optimization of pension structure
2018 2019 2020 2021 Q3 2022
Pension assets Pension obligations
* Figures in million €; pension obligations incl. other liabilities
Fact Book 2022 116

Joint Venture
124 History
LANXESS historically manages its net financial debt tightly after

increases of acquisitions, as in 2022
Total net debt* / EBITDA pre
[€ m] 1.6x 1.8x 1.8x 3.4x 2.9x 2.5x 1.2x 3.6x 2.1x 2.5x 2.2x 2.8x
5.000
5,000 5
M&A
4.000
4,000 3,350 4
3.000
3,000 2,870 3
2,554
2,517 2,383 1,098 1,865
2,223 2,206 2,110 625
2,096
786 812
2.000
2,000 581 740 2
1,435 1,047
995 1,226 729
853
522 2,252 2,245
1.000
1,000 1,515
1,483 1,731 1,742 1
1,225 1,336 1,211 957 1,381
1,146 925 1,010
913 918 995 986 1,019 1,012 862
735 808 885
269
0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net Fin Debt + pensions - pension assets - def. tax assets Net financial debt EBITDA pre Total net debt* / EBITDA pre
* All references to EBITDA are pre exceptionals, 2017 restated ARLANXEO as discontinued operation, 2018 restated BU LEA as discontinued operation; all references to debt = financial debt – cash + pensions
Fact Book 2022 117

Joint Venture
124 History
Maturity profile actively managed and well-balanced
Long-term financing secured Liquidity and maturity profile as per September 2022
 Diversified financing sources [€ m]
 Bonds and private placements 1500

Bilateral Bond Bond Bond Bond Bond
 Undrawn sustainable revolving 1000
Bond
2022
loan 2025 2026 2027 2028 2029
Hybrid
2076*
credit facility 500
2.625% 1.125% 1.00% 0.00% 1.75% 0.625% 4.50%
 Undrawn committed credit lines 0

Hybrid Private
Committed
 Average interest rate of financial -500 1st call* credit line
€100 m
placement
3.95% (2027)
Cash & cash 4.50%
liabilities ~1.5% -1000 equivalents,
Committed
credit lines
Near cash €650 m Sustainable
 All group financing executed -1500 assets revolving credit

facility
without financial covenants -2000
€1.0 bn
 Maturities in 2022: -2500

2022 2023 2024 2025 2026 2027 2028 2029 2030 2030+
 Bond in November will not be
refinanced Cash & cash equivalents,
Financial liabilities Credit facility
Near cash assets
* Hybrid Bond with contractual maturity date in 2076 has a first optional call date in 2023
Fact Book 2022 118

Joint Venture
124 History
Solid investment grade rating
Credit rating history
2017 2018 2019 2020 2021 2022
BBB-/ stable BBB/ stable BBB/ stable BBB/ stable BBB/ stable BBB/ negative
July 2017 October 2018 September 2019 July 2020 August 2021 September 2022
Baa3/ stable Baa2/ stable Baa2/ stable Baa2/ stable Baa2/ stable Baa2/ stable
October 2017 August 2018 August 2019 August 2020 August 2021 July 2022
BBB+/ stable BBB+/ stable BBB+/ stable BBB+/ stable BBB+/ stable
August 2018 July 2019 September 2020 August 2021 July 2022
Investment grade rated since spin-off in 2004
Fact Book 2022 119

Joint Venture
124 History
Evolving financials since 2013
[€ m] 2013 2014 2015 2016 20172 20183 2019 2020 2021
EBITDA pre 735 808 885 995 925 986 1,019 862 1,010
Net financial debt 1,731 1,336 1,211 269 2,252 1,381 1,742 1,012 2,245
Net financial debt /

2.4x 1.7x 1.4x 0.3x 2.4x 1.4x 1.7x 1.2x 2.2x
EBITDA pre
Gearing [%] 91 62 52 7 66 50 66 34 60
EPS pre [€]1 1.73 2.22 2.03 2.69 3.84 4.48 4.73 3.50 4.83
Dividend [€] 0.50 0.50 0.60 0.70 0.80 0.90 0.95 1.00 1.05
LANXESS’ key financials
1 Change in EPS definition: EPS pre exceptional items and amortization of intangible assets: earnings per share disregarding exceptional charges and income, amortization of intangible assets and attributable tax effects
as well as (only in 2017) non-recurring earnings effects of the U.S. tax reform, from 2017 onwards continuing operations only;
2
Restated ARLANXEO as discontinued operation; 3 Restated BU Leather as discontinued operation
Fact Book 2022 120

Joint Venture
124 History
Formation of a powerful plastics JV –

immediate cash-in and clear exit determined
 BU HPM valued at an EV of ~€2.5 bn

& (multiple of 12x EBITDA)
 LANXESS will get immediate cash-in of

≤40% ≥60% at least €1.1 bn with closing and
ownership in JV of ≤40%
 LANXESS has exit possibility:

 Earliest exit possibility after 3 years
 Fixed multiple for complete exit offers
upside due to synergies
BU HPM Engineering Materials  Closing and deconsolidation of BU HPM
expected H1 2023*
Engineering Plastics JV
LANXESS retains exit possibility for ≤40% ownership in JV
* BU HPM treated as discontinued operations as of 1st of January 2022
Fact Book 2022 121

Joint Venture
124 History
HPM & DEM: Bringing together two strong global

engineering materials players
FY 2021
High Performance Materials Engineering Materials Combined KPI in JV
Sales ~€1.5 bn ~€1.5 bn ~€3.0 bn
~€510 m
EBITDA pre ~€210 m ~€300 m plus synergies
Production sites 10 8 18
R&D centers 7 7 14
Employees ~1,900 ~2,100 ~4,000
LANXESS to own ≤40% in joint venture with combined EBITDA: ~€510 m plus synergies
All figures relate to FY 2021
Fact Book 2022 122

Joint Venture
124 History
Combining HPM & DEM offers massive synergy potential
Synergies based on highly complementary businesses
 Portfolio combinations
 Complementary HPM/DEM specialty business
(procurement, compounding)
 Cross-selling
 Optimization of PA6 Polymerization in EMEA
SG&A Cross-selling Production +

High Performance Materials Engineering Materials
Fact Book 2022 123

Joint Venture
124 History
Explanatory notes on financials history
 Figures shown as reported at year of publication, no restatments for balance sheet

Balance
sheet
Income  2022 restated to reflect BU HPM as discontinued operation

statement and  2018 restated to reflect BU LEA as discontinued operation
cash flow
statement  2017 restated to reflect ARLANXEO as discontinued operation
 2022 and 2021 figures are reflected as reported

Segment
 2020 is restated based on segment structure in 2021
data
 2019 is restated based on segment structure in 2020
Fact Book 2022 124

Joint Venture
124 History
Se p 30, De c 31, De c 31, De c 31, De c 31, De c 31, De c 31, De c 31, De c 31, De c 31,
Balance sheet – LANXESS (€ m) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Intangible assets 3,591 2,531 1,647 1,765 1,764 1,769 494 300 320 323
Property, plant and equipment 2,835 3,148 2,674 2,724 2,577 4,059 3,519 3,447 3,333 2,903
Investment accounted for using the equity method 79 0 0 0 0 0 0 0 0 12
Investments in other affiliated companies 30 56 2 1 2 9 12 12 13 13
Non-current derivative assets 12 28 4 1 0 7 1 1 5 20
Other non-current financial assets 57 62 41 29 25 20 19 21 11 11
Deferred taxes 77 192 326 324 287 442 442 361 380 254
Other non-current assets 131 112 129 221 131 133 32 38 39 56
Non-current assets 6 , 812 6 , 129 4 , 823 5 , 065 4 , 786 6 , 439 4 , 519 4 , 180 4 , 101 3 , 592
Inventories 2,090 1,633 1,070 1,195 1,347 1,680 1,429 1,349 1,384 1,299
Trade receivables 1,056 1,050 745 769 903 1,316 1,088 956 1,015 1,070
Near cash assets 219 491 1,523 0 0 50 40 100 100 106
Cash and cash equivalents 315 643 271 296 797 538 355 366 418 427
Current derivative assets 10 34 19 5 4 45 65 14 14 58
Other current financial assets 165 249 65 864 598 7 2,130 4 5 6
Other current assets 321 289 246 296 252 321 251 250 213 253
Assets from discontinued operations 1,277 0 118 205 - - - - - -
Current assets 5 , 453 4 , 389 4 , 057 3 , 630 3 , 901 3 , 957 5 , 358 3 , 039 3 , 149 3 , 219
Total assets 12,265 10,518 8 , 880 8 , 695 8 , 687 10,396 9 , 877 7 , 219 7 , 250 6 , 811
Capital stock and capital reserves 1,317 1,317 1,317 1,317 1,317 1,317 1,317 1,317 1,317 889
Other reserves 2,951 2,401 1,359 1,429 1,391 1,381 1,257 1,313 1,253 1,690
Net income 271 267 885 205 431 87 192 165 47 -159
Other equity components 321 -229 -560 -282 -359 -498 -214 -485 -458 -525
Equity attributable to non-controlling interests 6 6 -2 -22 -7 1,126 1,176 13 2 5
Stockholders equity 4 , 866 3 , 762 2 , 999 2 , 647 2 , 773 3 , 413 3 , 728 2 , 323 2 , 161 1 , 900
Provisions for pensions and other post-employment benefits 363 877 1,205 1,178 1,083 1,490 1,249 1,215 1,290 943
Other non-current provisions 386 360 349 338 337 460 319 271 275 258
Non-current derivative liabilities 9 1 1 2 3 2 7 19 20 12
Other non-current financial liabilities 3,424 2,829 2,265 2,777 2,686 2,242 2,734 1,258 1,698 1,649
Non-current income tax liabilities 39 37 75 95 117 119 31 19 25 49
Other non-current liabilities 38 50 51 67 80 99 93 108 118 89
Deferred taxes 300 223 113 109 89 113 83 46 21 29
Non-current liabilities 4 , 559 4 , 377 4 , 059 4 , 566 4 , 395 4 , 525 4 , 516 2 , 936 3 , 447 3 , 029
Other current provision 460 492 332 409 465 525 406 411 350 355
Current derivative liabilities 85 21 15 17 25 12 42 100 101 22
Other current financial liabilities 893 675 566 66 59 633 78 443 182 668
Trade payables 871 1,008 681 656 795 1,048 889 779 799 690
Current income tax liabilities 43 25 24 122 44 61 44 85 44 21
Other current liabilities 140 157 129 111 131 179 174 142 166 126
Liabilities from discontinued operations 348 1 75 101 - - - - - -
Current liabilities 2 , 840 2 , 379 1 , 822 1 , 482 1 , 519 2 , 458 1 , 633 1 , 960 1 , 642 1 , 882
Total equity and liabilities 12,265 10,518 8 , 880 8 , 695 8 , 687 10,396 9 , 877 7 , 219 7 , 250 6 , 811
Fact Book 2022 125

Joint Venture
124 History
P&L statement – LANXESS (€ m) 9M 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Net sales 6 , 115 7 , 557 6 , 104 6 , 802 6 , 824 6 , 530 7 , 699 7 , 902 8 , 006 8 , 300
Cost of goods sold -4,632 -5,712 -4,548 -5,043 -5,086 -4,796 -5,945 -6,154 -6,418 -6,752
Gross Profit 1 , 483 1 , 845 1 , 556 1 , 759 1 , 738 1 , 734 1 , 754 1 , 748 1 , 588 1 , 548
Gross Margin 24.3% 24.4% 25.5% 25.9% 25.5% 26.6% 22.8% 22.1% 19.8% 18.7%
Selling expenses -773 -951 -773 -812 -759 -761 -781 -759 -742 -755
R&D expenses -76 -115 -108 -114 -109 -103 -131 -130 -160 -186
G&A expenses -219 -304 -267 -274 -295 -326 -303 -284 -278 -301
Other operating income 20 79 77 95 114 164 147 207 118 128
Other operating expenses -159 -204 -232 -247 -198 -409 -222 -367 -308 -527
Other operating income – net -139 -125 -155 -152 -84 -245 -75 -160 -190 -399
Operating Result (EBIT) 276 350 253 407 491 299 464 415 218 -93
Income/expense from investments in affiliated companies –
net 0 0 0 0 0 0 0 0 2 0
Interest expense – net -50 -51 -56 -54 -69 -80 -63 -66 -69 -106
Other financial result – net 52 4 877 -7 -41 0 -62 -61 -71 -40
Financial result 2 -47 821 -61 - 1 10 -80 - 1 25 - 1 27 - 1 38 - 1 46
Earnings before taxes (EBT) 278 303 1 , 074 346 381 219 339 288 80 - 2 39
Income taxes -79 -84 -165 -105 -99 -159 -144 -121 -36 71
Earnings after taxes from continued operations 199 219 909 241 282 60 195 167 44 - 1 68
Earnings after taxes from discontinued operations 73 48 -7 -50 241 64 0 0 0 0
Earnings after taxes total 272 267 902 191 523 124 195 167 44 - 1 68
Minorities 1 0 17 -14 92 37 3 2 -3 -9
Net income (loss) 271 267 885 205 431 87 192 165 47 - 1 59
EPS 3.14 3.09 10.22 2.32 4.71 0.95 2.10 1.80 0.53 -1.91
EPS pre (continued) 3.28 4.83 3.50 4.73 4.48 3.84 2.69 2.03 2.22 1.73
E B IT 276 350 253 407 491 299 464 415 218 -93
EBITDA 673 863 757 910 906 709 945 833 644 624
Exceptionals 85 150 143 150 90 259 50 7 184 381
D&A in exceptionals 3 3 38 41 10 43 0 -45 20 270
EBITDA pre exceptionals 755 1 , 010 862 1 , 019 986 925 995 885 808 735
Fact Book 2022 126

Joint Venture
124 History
Cash flow statement – LANXESS (€ m) 9M 2022 F Y 2021 F Y 2020 F Y 2019 F Y 2018 F Y 2017 F Y 2016 F Y 2015 F Y 2014 F Y 2013
Income before income taxes 278 303 1 , 074 346 381 219 339 288 80 - 2 39
Depreciation and amortization 397 513 504 503 415 410 481 418 426 717
Gains from the disposal of intangible assets and property,
plant and equipment 3 -1 -1 -1 -1 1 0 -42 -1 -2
Financial losses (gains) -17 30 -840 34 63 35 56 66 75 111
Income taxes paid 37 -10 -215 -193 -154 -139 -184 -98 -31 -41
Working Capital changes -597 -413 106 68 -179 -66 -47 93 147 110
Others -6 17 -34 -123 -84 108 44 -33 101 -15
Operating cash flow – continued operations 95 439 594 634 441 568 689 692 797 641
Operating cash flow – discontinued operations -104 -32 -9 9 145 300 - - - -
Operating cash flow – total -9 407 585 643 586 868 689 692 797 641
Investing cash flow – continued operations - 1 , 010 - 4 31 - 3 50 - 6 97 80 -22 - 2 , 879 - 4 00 - 5 87 - 3 42

Investing cash flow – discontinued operations -19 -1 -3 -15 -184 -145 - - - -
Investing cash flow – total - 1 , 029 - 4 32 - 3 53 - 7 12 - 1 04 - 1 67 - 2 , 879 - 4 00 - 5 87 - 3 42
~ thereof CAPEX - 2 49 - 4 79 - 4 56 - 5 08 - 4 82 - 3 97 - 4 39 - 4 34 - 6 14 - 6 24
Financing cash flow – continued operations 714 389 - 2 46 - 4 31 - 1 60 - 5 45 2 , 173 - 3 33 - 2 22 - 2 60

Financing cash flow – discontinued operations -3 0 -1 -2 -57 37 - - - -
Financing cash flow – total 711 389 - 2 47 - 4 33 - 2 17 - 5 08 2 , 173 - 3 33 - 2 22 - 2 60
Free Cash Flow - 2 58 -72 129 135 104 471 250 258 183 17
Fact Book 2022 127

Joint Venture
Segment data 124 History
Consumer Protection 9M 2022 2021 2020 2019 Specialty Additives 9M 2022 2021 2020 2019
– –
Key Figures (€ m) restated restated Key Figures (€ m) restated
(2021) (2020) (2021)
Sales 1 , 726 1 , 515 1 , 243 1 , 050 Sales 2 , 286 2 , 295 1 , 965 1 , 965
E B IT 152 155 160 116 E B IT 250 134 69 179
Depreciation & Amortization 121 107 106 82 Depreciation & Amortization 140 172 192 158
EBITDA 273 262 266 198 EBITDA 390 306 261 337
Exceptionals (EBIT relevant) 13 13 17 0 Exceptionals (EBIT relevant) 1 18 32 18
D&A in exceptionals 0 0 17 0 D&A in exceptionals 0 1 15 2
EBITDA pre exceptionals 286 275 266 198 EBITDA pre exceptionals 391 323 278 353
Advanced 9M 2022 2021 2020 2019 All Other Segments 9M 2022 2021 2020 2019
Intermediates – –
Key Figures (€ m) restated restated Key Figures (€ m)
(2021) (2020)
Sales 1 , 842 1 , 949 1 , 629 2 , 251 Sales 261 90 77 86
E B IT 140 212 203 198 E B IT - 2 66 - 3 19 - 2 62 - 2 58
Depreciation & Amortization 86 115 108 170 Depreciation & Amortization 50 47 31 27
EBITDA 226 327 311 368 EBITDA - 2 16 - 2 72 - 2 31 - 2 31
Exceptionals (EBIT relevant) 0 6 1 50 Exceptionals (EBIT relevant) 71 112 92 82
D&A in exceptionals 0 0 3 45 D&A in exceptionals 3 2 3 4
EBITDA pre exceptionals 226 333 309 383 EBITDA pre exceptionals - 1 48 - 1 62 - 1 42 - 1 53
Fact Book 2022 128

LANXESS Fact Book
2022
APPENDIX
APPENDIX
Urethane Systems
Urethane Systems – a leading niche player in specialized and

innovative urethane-based products
 Sales: <€500 m Others 5%
 Market growth: >GDP Mobility 12%
 Customers: ~750 Chemical industry

 Products: >500 17%
 Production: 6 sites Food, healthcare and
and industrial use 43%
consumer goods 23%
 Employees: ~400
 Market position: Tier 1 in cast elastomer systems
 Competitors: Covestro, Dow, BASF, Huntsman, COIM, EMEA 22%
ERA, DIC, Mitsui, Wanhua, Dongda, inter
alia
 Business: One of the leading global Americas 51%
manufacturers of urethane systems;
technology leader in low free (LF) Asia-Pacific 27%
technology*
* LF = low level of free isocyanates, this product segment of prepolymers meets or exceeds tightening health and safety regulations
Fact Book 2022 131

APPENDIX
Urethane Systems
Strong footprint in elastomers as highly specialized,

customer-centric business
 Leading know-how in
 Trend towards use of technically demanding
sustainable chemicals elastomer applications
supporting low free
technology  Customer proximity
and high level of
 Replacement of rubber customer-specific
by polyurethane development work
 Automated industrial  Sustainability as key
equipment with principle in action
increased demand for with low free
maintenance free parts technology, bio-based
content and recycling
Fact Book 2022 132

APPENDIX
Urethane Systems
Urethane Systems – local coverage for a global customer base
Global customer proximity

Baxenden (UK)
 Production sites in Brazil, USA,
Italy, UK and China Leverkusen (DE)
Naugatuck (US)
 Local technical support – Cologne (DE)
Perth Amboy
Technical Competence Centers (US)
Shanghai (CN)
in Brazil, USA, UK, Germany,
Gastonia (US)
Italy, India, China and Australia
Latina (IT) Nantong (CN)
Mumbai (IN) Sydney (AU)

Porto Feliz (BR)
Technical
Competence Center
Fact Book 2022 133

APPENDIX
Urethane Systems
High-quality solutions are provided for four main product areas
Cast elastomers Coatings Adhesives and sealants Polyester polyols
Key applications Key applications Key applications Key applications

 Oil and gas  Leather and textile  Field-applied ambient  PU foam, TPU
 Mining  Glass fiber sizing cured adhesives and and elastomer production
 Wheels and tires  Breathable coatings sealants  Adhesives for metals,
 Paper and printing  Automotive coatings  Factory-applied heat cured paper and wood
adhesives and sealants  Protective coatings
 Industrial  Protective coatings
Products Products Products Products

 Adiprene® LF  Adiprene® LF  Adiprene® LF  Fomrez®
 Vibrathane®, Adiprene®  Witcobond®, Witcoflex®  Witcobond®, Witcoflex®
 Vibracure®, Duracure®  Pellart®  Trixene®
 Vibracat ®  Trixene®  Quasilan®
 Ultralast®  Quasilan®  WRM®
Fact Book 2022 134

APPENDIX
Urethane Systems
Offering specialized systems and design for urethanes
Prepolymer production Elastomer design Production of end-product
Mixing and pouring Hot-cast PU

Polyol into heated mold Elastomers
(60-75%)
Technical Problem
service solving
Spray, brush, rollercoat, Flexible
impregnation, curtain, etc. PU surface
Diisocyanate Prepolymer Design Advanced Coatings
(25-40%) assistance testing (for soft
(tailor-made for and hard
specific properties Air-dry or dry / heat-cure substrates)
and final
applications)
Model Fatigue
Low molecular calculations resistance
weight diols
(other additives,
Adhesives
Spray, rollercoat, inject
stabilizers etc.) and Sealants
LANXESS expertise Customer expertise

Part of LXS / Urethane Systems value creation Sourced raw materials / intermediates End-products
Fact Book 2022 135

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FACT BOOK

Edition 8.0 – November 2022

Fact Book 2022

01 LANXESS – Energizing Chemistry

Dear Investor, dear Analyst,

Fact Book 2022

LANXESS – a globally operating specialty chemicals company

 Specialty chemicals portfolio with focus on consumer

 53 production sites worldwide

Set-up  Around 13,200 employees in 33 countries

 Building on leading positions in medium-sized markets

Fact Book 2022 5

Strong portfolio of attractive businesses:

 Material Protection Products  Polymer Additives  Advanced Industrial Intermediates

 Among top 3 players  Among top 3 players  Among top 3 players

Group functions and countries

Globally responsible Business Unit set-up fosters dedication and entrepreneurship

Fact Book 2022 6

LANXESS well diversified, worldwide presence and serving

Agriculture and Nutrition, health

Sales1: ~€7.8 bn Investment3: ~€7 bn

Fact Book 2022 7

Organization with global responsibility –

Business Units  Accounting Business Units Business Units

Clear cut responsibilities enable fast decision making

Fact Book 2022 8

Our portfolio transformation has been successful:

 Monetizing hidden reserves

 Exit from unattractive business

Organo-  Rigorously addressing under-performing

Membranes  Shifting all resources to focus areas

Fact Book 2022 9

Targeted acquisitions in Consumer Protection boost specialty

 Organic  High profitability

Fact Book 2022 10

LANXESS portfolio transformed towards a true specialty

Rubber Flavors &

Fact Book 2022 11

Portfolio transformation increased US footprint…

Growth CAPEX and M&A spending since 2017*

Americas Rest of world

Fact Book 2022 12

… and led to a more balanced end-market exposure

Balanced end-market exposure*

Food, health and

Fact Book 2022 13

Specialty character substantially increased –

Polymers (ARLANXEO, HPM) Consumer Protection Specialty Additives Advanced Intermediates

Illustration simplified; Urethanes excluded

Fact Book 2022 14

Portfolio transformation strengthened our resilience –

Financial crisis Rubber crisis Covid pandemic

Exit from polymers

Fact Book 2022 15

Now the imperatives are the following for LANXESS!

2022 2023 2024/25

A leading specialty Deliver on synergies

 Portfolio adjustment  More resilient than before  Reap benefits of strong

Fact Book 2022 16

Portfolio framework: Two growth-focused platforms –