LANXESS Overview

With innovative premium products, first-class technical expertise and inventiveness, LANXESS contributes to its customers’ success around the globe. As a specialty chemicals company, our businesses hold leadership positions in the world’s markets. Resource efficiency and environmentally friendly solutions form the key to our sustainable growth.

Our product portfolio is consistently aligned to four of the most important global megatrends: mobility, agriculture, urbanization and water. We are successfully positioned in growth regions in which our products will enable us to particularly benefit from these trends in the medium and long term.

Mobility
Throughout the world, more and more people seek increased mobility. LANXESS uses state-of-the-art technologies to develop applications that make mobility more environmentally friendly. Our high-performance rubbers are the main component in modern green tires, reducing rolling resistance while ensuring a long service life and optimal braking behavior. Used in brake pedals, oil pans and many other automotive components, our high-tech plastics result in a measurable weight reduction and corresponding decrease in fuel consumption. Compared with metals, they are also easier to process and have outstanding mechanical properties.

Agriculture
Modern agriculture must meet the needs of a growing world population and satisfy the increasing demand for energy produced from renewable raw materials. LANXESS plays a role in making modern agriculture more productive and sustainable. As a manufacturer of active substances, precursors and intermediates, we are among the leading suppliers to the agrochemical industry, for example. Our antioxidants ensure that biofuel obtained from natural raw materials remains stable and can therefore be used for longer. Antioxidants also play a key role in protecting animal feed from spoiling. They prevent the unsaturated fatty acids in the feed from becoming rancid and thus also toxic.

Urbanization

Cities are facing enormous challenges from the growing demand for living space, steadily increasing energy consumption, higher waste volumes and rising levels of air and noise pollution. With its products and solutions, LANXESS can make an important contribution to the development of sustainable urban concepts. For example, our biocides protect vulnerable materials like wood, paints and plasterboard from infestation with harmful organisms, thus prolonging their useful lives. Our flame retardants inhibit the flammability and combustibility of floor coverings, cable sheathings and insulating materials. And our iron oxide and chrome oxide pigments can be used to lend an esthetic touch to pre-cast concrete components and asphalt floorings, among other things.

Water
Usable water is one of the most valuable of all raw materials. Products and solutions from LANXESS help to keep water free from harmful substances and bacteria for all kinds of industrial applications and produce clean water for humans and animals to drink. Our ion exchangers, for example, prevent damaging limescale deposits – both on an industrial scale in power stations and in household applications. They are also used to adsorb arsenic as well as other undesirable substances in water, such as lead and phosphate. Consequently, they are suitable for treating industrial wastewater the world over. Membrane elements for reverse osmosis help to reliably remove salt from seawater and brackish water, making them suitable for drinking.

LANXESS Group Key Data
 
€ million Q4 2012 Q4 2013 Change % 2012 2013 Change %
 
Sales 2,123 2,014 (5.1) 9,094 8,300 (8.7)
EBITDA pre exceptionals 239 176 (26.4) 1,223 735 (39.9)
EBITDA margin pre exceptionals 11.3% 8.7%   13.4% 8.9%  
EBITDA 228 123 (46.1) 1,186 624 (47.4)
Operating result (EBIT) pre exceptionals 137 55 (59.9) 847 288 (66.0)
Operating result (EBIT) 126 (262) < (100) 808 (93) < (100)
EBIT margin 5.9% (13.0)%   8.9% (1.1)%  
Net income (loss) 50 (204) < (100) 508 (159) < (100)
Earnings per share (€) 0.61 (2.45) < (100) 6.11 (1.91) < (100)
Dividend per share (€)       1.00 0.50 1) (50.0)
ROCE       15.6% 5.8%  
 
Cash flow from operating activities 414 330 (20.3) 838 641 (23.5)
Depreciation and amortization 102 385 > 100 378 717 89.7
Cash outflows for capital expenditures 315 226 (28.3) 696 624 (10.3)
 
Total assets       7,519 6,811 (9.4)
Equity (including non-controlling interests)       2,330 1,900 (18.5)
Equity ratio       31.0% 27.9%  
Net financial liabilities       1,483 1,731 16.7
             
Employees (as of December 31)       17,177 17,343 1.0
Personnel expenses (€ million)       1,392 1,339 (3.8)
Work-related injuries resulting in at least 1 day’s absence (per million hours worked)       3.4 3.2  
 
Energy consumption (petajoules)       55.0 53.0 (3.6)
Total water consumption (in million cubic meters)       309 296 (4.2)
Emissions of greenhouse gases (CO2 equivalents in thousand tons)       1,913 1,770 (7.5)
Emissions of volatile organic compounds (in thousand tons)       7.6 6.6 (13.2)
Total waste (in thousand tons)       283 273 (3.5)
Production wastewater (in million cubic meters)       34 32 (5.9)
1) Dividend proposal to the Annual Stockholders&apos; Meeting on May 22, 2014
2012 figures restated
    
Sales by Region
Sales by Region
Employees by Region (as of December 31)
Employees by Region (as of December 31)

This annual report contains forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.