Covestro AG · VIE:1COV
Covestro — IPO Roadshow (September 2015)
157 slides from Covestro's IPO roadshow presentation, Sep 4, 2015
Slide 1: Leverkusen, 04 September 2015
Leverkusen, 04 September 2015 covestro.com
Slide 2: Table of contents
Table of contents 1 Introduction 2 2 Company Overview 4 3 Covestro Key Investment Highlights 10 4 Covestro Strategy for Future Growth 23 5 Polyurethanes (PUR) 28 6 Polycarbonates (PCS) 75 7 Coatings, Adhesives and Specialties (CAS) 95 8 Financials 117 9 Update on H1 2015A Financials 143 Glossary 151
Slide 3: Section 1 – Introduction
Section 1 – Introduction covestro.com
Slide 4: Transitioning into a stand-alone company
Transitioning into a stand-alone company Independence unlocks further potential for capital and cost efficiencies …gives Covestro greater flexibility Separation from Bayer… to independently pursue business goals Bayer MaterialScience Strategic freedom to execute 28% asset optimization initiatives Fo
Slide 5: Section 2 – Company Overview
Section 2 – Company Overview covestro.com
Slide 6: Inventor and leader in high-tech material solutions
Inventor and leader in high-tech material solutions Covestro at a glance Leading global polymer producer in polyurethanes and Sales split by geography(b)(c) its derivatives as well as polycarbonates 2014A APAC Proven track record of process and product innovation, 28% EMLA customer proximity as well
Slide 7: Three industry-leading, structurally attractive business units
Three industry-leading, structurally attractive business units Covestro business units Polyurethanes Polycarbonates Coatings, Adhesives, Business Units (PUR) (PCS) Specialties (CAS) Global #1: Joint Global #1: Global #1: MDI: #2 (1,475kt) EMEA: #2 (540kt) Aliphatic isocyanate derivatives Global Posi
Slide 8: Covestro integrated sites in all key regions provide advantages of scale and synergies
Covestro integrated sites in all key regions provide advantages of scale and synergies Covestro takes advantage of integrated backbone chemistry and operates 8 interlinked world-scale plants in all 3 key regions Americas EMEA APAC Antwerp, Belgium Uerdingen, Germany Dormagen, Germany Shanghai, China
Slide 9: Focus on higher-value engineering polymers and active specialties
Focus on higher-value engineering polymers and active specialties Covestro in the polymer spectrum Relatively consolidated industries with stable structures, largely unchanged over the last 5 years Active in higher-price engineering polymers Product differentiation from close customer interaction an
Slide 10: Building upon 80 years of innovation and leadership
Building upon 80 years of innovation and leadership Covestro contributions to polymer industry 1998 First automotive glazing application for the 2010 2015 Smart Significant investments in expansion First bio-based rear of facilities at site in China cross-linker (PDI) window Acquisition of TCG to bu
Slide 11: Section 3 – Covestro Key Investment Highlights
Section 3 – Covestro Key Investment Highlights covestro.com
Slide 12: Global leader in high-tech material solutions
Global leader in high-tech material solutions Covestro Key Investment Highlights Leading and defendable global industry positions 1 based on focused portfolio Favorable industry dynamics 2 with robust above GDP growth prospects in a diverse range of end-markets Positioned to deliver volume growth 3
Slide 13: Covestro is a leader across its entire portfolio and across regions
1 Covestro is a leader across its entire portfolio and across regions Global industry positions Polyurethanes Polycarbonates Coatings, Adhesives, Specialties Aliphatic Polyether isocyanate Polyurethane MDI TDI polyols(b) PC derivatives dispersions Covestro Global Position (2014A)(a) Joint #2 #1 #2 #
Slide 14: Distinct entry barriers limit threat of new entrants
1 Distinct entry barriers limit threat of new entrants Industry structure Polyurethanes Polycarbonates Coatings, Adhesives, Specialties Aliphatic isocyanate Polyurethane MDI TDI Polyether polyols PC derivatives dispersions Degree of Consolidation (2014A)(a) Others Others Others Others Others Others
Slide 15: Above GDP industry growth supported by global trends
2 Above GDP industry growth supported by global trends Exposure to fundamental macro trends Industry demand outlook Global trends Needs Covestro solutions 2014A – 2020E(a) Demand (kt) CAGR Building insulation Zero emission concepts 5.3% Climate 20,480 Insulation along the cold change Low energy buil
Slide 16: Covestro expected to benefit from supportive market environment
2 Covestro expected to benefit from supportive market environment Industry utilization and profitability outlook MDI TDI PC Industry spreads (US$/t)(a)(c) Utilization rate (%)(b)(c) Industry spreads (US$/t)(a)(c) Utilization rate (%)(b)(c) Industry spreads (US$/t)(a)(c) Utilization rate (%)(b)(c) 2,
Slide 17: Positioned for volume growth through well-invested assets
3 Positioned for volume growth through well-invested assets Covestro asset base Well-invested asset base Well-positioned for volume growth and operational leverage Total capex (€m)(a) Total capex / sales (%)(a) Capacity (kt) 8.5% 6.8% +360kt 5.7% 889 642 673 4,695kt 4,640kt 2005A 2007A 2014A 2014A F
Slide 18: Backward and forward-integration supported by polyurethanes backbone
3 Backward and forward-integration supported by polyurethanes backbone Covestro in the value chain Integrated production model Feedstock Base products Specialties / derivatives Customers / end-markets(a) Phenol Automotive / Transportation 22% Acetone Polycarbonates Chlorine Construction 19% Isocyana
Slide 19: Competitive cost position supported by leading process technologies
3 Competitive cost position supported by leading process technologies across the platform Overview of key Covestro process technologies Melt process for Sodium chloride Carbon dioxide as raw HDI / TDI gas-phase process polycarbonates production electrolysis with ODC(b) material for polyol production
Slide 20: Focus on stable high margins in CAS business
4 Focus on stable high margins in CAS business with defendable competitive advantages CAS at a glance Global leading supplier of high performance materials to the coatings / adhesives / specialties industries 6+ 2,300+ 4,300+ Monomers Products Customers(c) #1 22.7% Producer of €1.9bn Adj. EBITDA ali
Slide 21: Potential for upside in profitability and free cash generation
5 Potential for upside in profitability and free cash generation Covestro’s financial profile Sales (€m) Strong recent momentum(b) (2%) 4% 11,610 11,357 11,761 – positive YoY growth across both Net sales 8% sales and adj. EBITDA in Q1 and growth – improvement in level of adj. EBITDA 2,803 3,014 prof
Slide 22: Below mid-cycle profitability provides margin upside
5 Below mid-cycle profitability provides margin upside EBITDA delivery Covestro adj. EBITDA margin development (2005A – 2014A) Group adj. EBITDA margin % PUR adj. EBITDA margin % PCS adj. EBITDA margin % CAS adj. EBITDA margin % 18.7% 16.5% 15.4% 11.2% 13.4% 10.8% 10.7% 9.9% 9.3% 5.9% 2005A 2006A 20
Slide 23: Track record of positive free operating cash flows across the cycle
5 Track record of positive free operating cash flows across the cycle Cash flow delivery Covestro net sales vs. FOCF (2005A – 2014A) Net sales (€m) FOCF (€m)(a) 11,610 11,761 11,357 10,832 10,161 10,435 10,154 9,446 9,738 7,520 673 592 415 345 313 277 265 210 181 110 2005A 2006A 2007A 2008A 2009A 20
Slide 24: Section 4 – Covestro Strategy for Future Growth
Section 4 – Covestro Strategy for Future Growth covestro.com
Slide 25: Leverage industry leadership to capture growth and improve asset / cost base
Leverage industry leadership to capture growth in our markets and improve asset / cost base Covestro strategy Capture market growth 1 over the next 5 years with existing world-scale assets Optimize asset footprint 2 within 3 years through site consolidation, restructuring and efficiency projects Imp
Slide 26: Multiple levers for EBITDA growth in the future
Multiple levers for EBITDA growth in the future Building blocks for Covestro future profitability EBITDA Volume Asset Net cost Mid-term 2015E growth and optimization improvement EBITDA operating leverage covestro.com Note: Chart not to scale 25
Slide 27: Focused R&D to build and protect profitable competitive positions
4 Focused R&D to build and protect profitable competitive positions R&D strategy Examples Product R&D: New 1 1 PDI Adjacent Growth CO2 polyols New Technology PCS composites Technology Process R&D: 2 3 IMPACT technology Core Efficiency Adjacent Growth & Sustain New Market 2 Automotive interior Existi
Slide 28: Embed sustainability in every element of the strategy
5 Embed sustainability in every element of the strategy to further drive profitability Covestro sustainability along the value-chain Raw Products Global trends R&D Production materials to markets R&D More sustainable Best-in-class safety track record Address customer needs resources procurement Cost
Slide 29: Polyurethanes (PUR)
Section 5 – Polyurethanes (PUR) MDI TDI Polyether polyols Summary, Strategy & Financial Outlook covestro.com
Slide 30: Inventor of and leader in polyurethanes
Inventor of and leader in polyurethanes PUR at a glance Inventor and producer of polyurethane raw materials and systems mainly for rigid and flexible foams(a) Broad portfolio spanning MDI and TDI (isocyanates) and Polyether polyols Comfort / Furniture Construction Upholstery Metal Panel Competitive
Slide 31: Versatile engineering plastic with unique combination of properties
Versatile engineering plastic with unique combination of properties and wide range of applications Introduction to polyurethanes Polyurethanes Highly versatile polymer Specific properties Broad range of Widely used for cushioning and insulating properties density hardness Broad range of applications
Slide 32: Polyurethanes provide sustainable solutions to global challenges
Polyurethanes provide sustainable solutions to global challenges leading to above GDP growth Tailwind from macro trends Global PU industry(a) Macro trend Challenge Need Solution Demand (kt) The world’s 5.3% population is Efficiently insulated expected to reach cold chain 20,480kt 9.6 billion by 2050
Slide 33: Covestro is one of two global leaders with full scope advantage
Covestro is one of two global leaders with full scope advantage as basis for innovation and growth Industry structure and position Competitive position of key PU players (2014A) Global There are several small Covestro local producers of individual Geographic intermediates used to footprint manufactu
Slide 34: Differentiation achieved across the customer spectrum
Differentiation achieved across the customer spectrum Breadth of Covestro offering Covestro systems volumes Standardized product buyers: Systems Specialties / Solution buyers: Narrow differentiation potential sales Broad differentiation Interchangeable standardized products with pricing following pr
Slide 35: Distinct PU properties enable use in high-end thermoplastics
Distinct PU properties enable use in high-end thermoplastics for various applications Example of customized systems solutions What are Thermoplastic What makes TPU Covestro well-positioned to capitalize Polyurethanes (TPU)? so special? on TPU opportunity High performance thermoplastic PU chemistry w
Slide 36: Backward-integration contributes to low cost position
Backward-integration contributes to low cost position; forward-integration enhances customer proximity Covestro value chain position Backward-integration into key feedstock Forward-integration through application know-how Raw materials Customized blends / End-market / Feedstock conversion systems cu
Slide 37: Balanced business with attractive growth invested for margin-improvements
Balanced business with attractive growth invested for margin-improvements PUR in numbers Sales split by Net sales Adj. EBITDA and margin Sales split (%), 2014A Net sales (€m) CAGR (%) Adj. EBITDA (€m) Adj. EBITDA margin (%) End-market Core Others volume(a) c.10% Comfort / Chemicals 3.6% Sales furnit
Slide 38: Continuous sales growth primarily driven by volume increase
Continuous sales growth primarily driven by volume increase PUR historical financial performance Net sales and growth (€m) Net sales primarily driven by volume growth following strong demand in key customer industries and 6,282 increasing utilization of (expanded) MDI and TDI 5,993 6,052 capacities
Slide 39: Global PU leader with strong cash generation and earnings growth potential
Global PU leader with strong cash generation and earnings growth potential PUR Key Investment Highlights 1 #1 global producer of PU with leading and defendable industry positions owing to distinct barriers to entry, broad customer base / access and polyether polyols-driven innovation capabilities(a)
Slide 40: Polyurethanes (PUR)
Section 5 – Polyurethanes (PUR) MDI TDI Polyether polyols Summary, Strategy & Financial Outlook covestro.com
Slide 41: Leading global player in c. 2x GDP growth industry
Leading global player in c. 2x GDP growth industry MDI at a glance Top 2 positions in all key regions make Covestro globally leading supplier of raw materials for MDI consuming industries #2 MDI player globally(a) Robust expectation of c. 2x GDP demand growth support stable industry utilization / ma
Slide 42: Leading position across all regions in consolidated industry
1 Leading position across all regions in consolidated industry MDI competitive landscape MDI industry capacity share by region(a) Top MDI producers globally by capacity(a) Capacity (‘000kt), 2014A Capacity ('000kt), 2014A Covestro 1.8 #2 #1 #2 1.6 position 1.5 3.1 1.5 1.2 1.2 2.2 0.9 7 0.9 other 83%
Slide 43: Strong Covestro industry position supported by distinct entry requirements
1 Strong Covestro industry position supported by distinct entry requirements MDI barriers to entry Global capacity by producer Industry Covestro position Others 7% Considerable investment required to Well-invested, large- to world-scale develop world-scale plants(a) asset base Capital intensity US$1
Slide 44: Diverse end-markets across all regions support robust growth outlook
2 Diverse end-markets across all regions support robust growth outlook MDI industry demand MDI demand by region CAGR Underlying application growth driver(a) 2014A – 2020E Demand ('000kt) Construction 6.7% 8.0 Appliances 6.7% 5.8% CASE(b) 4.5% 1.5 +5.1% Others(c) 4.7% 7.1% 5.7 Increase in global cons
Slide 45: Demand growth outpaces forecasted supply additions
2 Demand growth outpaces forecasted supply additions MDI industry demand and supply MDI net capacity expansion vs. demand growth MDI capacity development by region 2014A – 2020E(a) Supply(a) / demand (kt) Capacity (kt) +2,280kt Supply Demand +5.8% +1,790kt +2,280kt +1,790kt +4.1% 8,430 450 8,430 4.1
Slide 46: Stable utilization and margins expected
2 Stable utilization and margins expected MDI industry utilization rates vs. spreads outlook MDI spread over raw materials, MDI industry supply / demand and utilization 95% 90% 87% (d) 86% 86% 85% 85% 85% 81% 82% Stable 1,210 1,206 1,106 1,118 1,150 8,032 8,330 8,430 7,990 7,570 7,910 7,600 7,130 6,
Slide 47: Higher utilization of well-invested asset base expected to lead to profitability expansion
3 Higher utilization of well-invested asset base expected to lead to profitability expansion Covestro utilization rate outlook Indicative Covestro MDI utilization rate potential Utilization rate (%)(a) Covestro utilization levels trailed industry in 2014A due to Management 90% estimation ramp-up of
Slide 48: Well-positioned production network to supply customer demand globally
3 Well-positioned production network to supply customer demand globally Covestro MDI operations Brunsbüttel, Germany Leverkusen, Germany Pittsburgh, PA, USA Tarragona, Spain Baytown, TX, USA Amagasaki, Japan • Nameplate capacity: 200kt • Start of production: 1988 • Economic expansion to 400kt p.a. p
Slide 49: Leading cost position in US and China; efficiency potential in Europe
4 Leading cost position in US and China; efficiency potential in Europe MDI regional industry cost curve North America Western Europe Asia MDI Cash Cost(a) MDI Cash Cost(a) MDI Cash Cost(a) A B C D E Tarragona European Western Brunsbüttel Uerdingen Leader Covestro North North Chinese Covestro Chines
Slide 50: Competitive cost position through continuous efficiency improvements
5 Competitive cost position through continuous efficiency improvements Covestro asset efficiency Track record of improving cost position in MDI Global average MDI cash costs driven by structural and technology improvements without benzene(a) Infrastructure costs in Niihama, Japan Indexed to 2005A Ad
Slide 51: Polyurethanes (PUR)
Section 5 – Polyurethanes (PUR) MDI TDI Polyether polyols Summary, Strategy & Financial Outlook covestro.com
Slide 52: Global leader in long-term growth industry
Global leader in long-term growth industry TDI at a glance #1 producer of raw materials for TDI consuming industries globally with leading positions in all major regions #1 TDI player globally(a) Demand growth above GDP driven by all key end-markets and regions, particularly in APAC 660kt Anticipate
Slide 53: Covestro is #1 producer globally with leading positions across all regions
1 Covestro is #1 producer globally with leading positions across all regions TDI competitive landscape TDI industry capacity share by region(a) Top TDI producers globally by capacity(a) Capacity (‘000kt), 2014A Capacity ('000kt), 2014A Covestro #1 #1 #2 0.7 0.66 position Remaining c. 340kt 1.56 0.6
Slide 54: Strong position safeguarded by distinct entry requirements plus GPP technology
1 Strong Covestro position safeguarded by distinct entry requirements plus state-of-the-art GPP technology TDI barriers to entry Global capacity by producer Industry Covestro position 3 large- to world-scale production Others World-scale plant(a) requires: facilities and total capacity of 770kt post
Slide 55: Growth above GDP driven by all key end-markets and regions
2 Growth above GDP driven by all key end-markets and regions, particularly in Asia TDI industry demand TDI demand by region CAGR Underlying application growth driver(a) 2014A – 2020E Demand ('000 kt) Automotive 4.6% Bedding 4.9% 4.8% 3.0 Furniture 4.7% 0.4 +2.4% CASE(b) 4.9% 4.9% 2.2 Solid growth ac
Slide 56: Limited net capacity additions post-2015 below expected demand growth
3 Limited net capacity additions post-2015 below expected demand growth TDI industry demand and supply TDI net capacity expansion vs. demand growth TDI capacity development by region 2014A – 2020E(a) Supply(a) / demand (kt) Capacity (kt) +740kt Supply Demand +4.8% +700kt +740kt +700kt +4.0% 3,350 41
Slide 57: Improving industry utilization rates post-2015 support recovery of industry margins
3 Improving industry utilization rates post-2015 support recovery of industry margins Industry utilization rates vs. spreads TDI spread over raw materials, TDI industry supply / demand and utilization 90% 88% 89% 85% 84% (d) 83% 82% 82% 1,621 81% 80% 1,252 1,230 1,165 1,185 3,300 3,350 3,350 3,010 3
Slide 58: Ongoing European efficiency program to enhance existing assets
3 Ongoing European efficiency program to further enhance quality of existing world class assets Covestro TDI operations Brunsbüttel, Germany(a) Leverkusen, Germany • Nameplate capacity: 125kt Pittsburgh, PA, USA • Start of production: 1977 • Technology used: Liquid- Phase Phosgenation Amagasaki, Jap
Slide 59: Combination of scale, integration and technology provides global cost leadership
4 Combination of scale, integration and technology provides global cost leadership TDI regional industry cost curve North America Western Europe Asia TDI Cash Cost(a) TDI Cash Cost(a) TDI Cash Cost(a) C A D B Covestro North Covestro Western Covestro West Covestro Chinese Chinese Other North Baytown
Slide 60: Proprietary gas-phase production technology sets industry standards
4 Proprietary gas-phase production technology sets industry standards in efficiency and sustainability TDI process technology Innovative gas-phase technology for TDI Significant economic improvements(a) Cost indexed to 100 -80% -60% -40% TDA and phosgene heated How it works Subsequently transferred
Slide 61: Restructuring of European assets expected to lead to significant cost savings
5 Restructuring of European assets expected to lead to significant cost savings TDI operational improvements New world-scale Covestro TDI facility in Dormagen Location • Dormagen, Germany Most modern gas-phase TDI facility in the world Investment • €400m(a) Variable cost savings due to lower steam c
Slide 62: Polyurethanes (PUR)
Section 5 – Polyurethanes (PUR) MDI TDI Polyether polyols Summary, Strategy & Financial Outlook covestro.com
Slide 63: Leading position in polyether polyols a key differentiator
Leading position in polyether polyols a key differentiator Polyether polyols at a glance Leading global supplier of polyether polyols with focus on NAFTA #2 and EMEA Polyether polyols player globally(b) Broad range of standardized products, specialities and technologies offered by Covestro to custom
Slide 64: Covestro global #2 producer with strong positions in NAFTA and EMEA
1 Covestro global #2 producer with strong positions in NAFTA and EMEA Polyether polyols competitive landscape Polyether polyols industry capacity share by region(a) Top polyether polyols producers globally by capacity(a) Capacity (‘000kt), 2014A Capacity ('000kt), 2014A Covestro 4.5 4.4 position #2
Slide 65: Polyols enable access to entire customer base and provide platform for innovation
1 Polyols enable access to entire customer base and provide platform to drive innovation Role of polyether polyols in Covestro portfolio Enabling access to whole PU customer base Foundation for innovation Indicative share of Covestro MDI & TDI sales jointly with Polyether polyols(a) MDI / Innovative
Slide 66: Competitive cost position through propylene oxide backward-integration
1 Competitive cost position through propylene oxide backward-integration with strong partner Covestro JV with LyondellBasell LyondellBasell agreements(a) US propylene oxide Joint Venture – Started in 2000 – Long-term off-take of propylene oxide from JV plants EMEA propylene oxide Joint Venture – 50
Slide 67: Distinct requirements to entry and Covestro competitive edge
1 Distinct requirements to entry and Covestro competitive edge supporting sustainable position Polyether polyols barriers to entry Industry structure Industry Covestro position Global capacity by producer (%) World-scale 300kt p.a. propylene oxide Operating global network of assets / polyether polyo
Slide 68: Cost leadership through IMPACT technology and CO2-based polyols
1 Cost leadership through proprietary IMPACT technology and next generation polyols CO2-based Polyether polyols process technology development IMPACT catalysts for efficient polyether polyol production Carbon dioxide as raw material for polyols production Start-up in 2003A (Dormagen) New technology
Slide 69: Polyether polyols and application know-how delivers growth
1 Polyether polyols and application know-how delivers growth Product innovation in PUR 1 2 PU rigid foam with 3 Nano PU insulation foam Wind blades improved resistance to fire Illustrative for research activities Increase presence in PU insulation, i.e. Introduction of new chemistry for Replacing Ep
Slide 70: PU-Solutions enable world's first refurbished Energy plus commercial building
1 PU-Solutions enable world’s first refurbished commercial building with “Energy plus” standard Covestro “Building of the Future” “Hannelore Kraft promotes Bottrop in Davos […] […] she speaks at the “future of urban development“ forum about the Innovation City in Bottrop. The ecological major rebuil
Slide 71: Polyether polyols – an inherently stable margin business
5 Polyether polyols – an inherently stable margin business Polyols industry spreads Historic global polyols price over propylene price Global average price (US$/t) 2005A – 2014A Spreads from c. 800US$/t to c. 950US$/t 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A Global Polyols Price (
Slide 72: Polyurethanes (PUR)
Section 5 – Polyurethanes (PUR) MDI TDI Polyether polyols Summary, Strategy & Financial Outlook covestro.com
Slide 73: Innovative global PU leader with competitive asset base
Innovative global PU leader with competitive asset base in a fundamental growth industry PUR summary MDI TDI Polyether polyols Leading supplier of MDI globally #1 producer of TDI globally Leading supplier of polyether polyols with focus on NAFTA and EMEA Robust expectation of c. 2x GDP Demand growth
Slide 74: PUR business strategy
Leverage well-invested asset base and practice disciplined cost control to drive bottom line PUR business strategy Key pillars of PUR strategy Implementation Grow into asset base with an optimized product portfolio: Leverage broad and global portfolio position and innovation Capture market growth ca
Slide 75: Growth driven by higher MDI volumes and operating leverage
Growth driven by higher MDI volumes and operating leverage Financial outlook for PUR Financial MDI TDI Polyether polyols Impact on Outlook(a) metric drivers drivers drivers cash flow • Higher utilization of • New Dormagen facility • Marginal volume recently expanded asset contributing to higher incr
Slide 76: Section 6 – Polycarbonates (PCS)
Section 6 – Polycarbonates (PCS) covestro.com
Slide 77: Global leading producer of polycarbonates serving key growth end-markets
Global leading producer of polycarbonates serving key growth end-markets PCS at a glance Joint global leader in polycarbonates together with SABIC and expected to become #1 in Asia in 2016E / 2017E(a) Inventor of polycarbonates chemistry Offers products and solutions for a wide range of applications
Slide 78: Engineering thermoplastics with a unique combination of properties
Engineering thermoplastics with a unique combination of properties serving numerous industries Introduction to polycarbonates Polycarbonates (PC) Key PC properties Key applications Automotive interior & exterior panels Bodywork parts Lighting systems Resins: Glazing Makrolon© Outer door panels Radia
Slide 79: Value capture through selective backward- and forward-integration
Value capture through selective backward- and forward-integration PCS value chain position Feedstock Raw materials Blends, compounds Processor Application Acetone Compounds BPA Injection molding Phenol (a) Blends LPC (a) Composites Polycarbonates Chlorine DPC SPC (b) (b) Phosgene Polycarbonates Extr
Slide 80: Polycarbonates industry recovering from a trough
Polycarbonates industry recovering from a trough Recent developments in the polycarbonates industry Historical polycarbonates industry dynamics 2010A-2014A CAGR Absolute change (kt) Polycarbonates demand growth in 2010A- Polycarbonates demand growth +1.6% +230 2014A negatively impacted by weaker Pol
Slide 81: Strong growth and margin recovery in 2014 driven by higher industry utilization
Strong growth and margin recovery in 2014 driven by higher industry utilization PCS historical financial performance Net sales and growth (€m) Lower net sales in 2013A driven by lower volumes and price pressure due to new industry capacities in Asia. 2,822 2,645 2,822 Improved market environment on
Slide 82: Strong future demand supported by tailwind from macro trends
Strong future demand supported by tailwind from fundamental macro trends Key macro trends in polycarbonates Global Trends Needs Polycarbonates Solutions Size reduction Polycarbonates are able Dimensional stability to address all these Mobility Mechanical performance requirements and are suitable for
Slide 83: Well positioned to capture global demand growth
Well positioned to capture global demand growth, leading to attractive financial outlook PCS Key Investment Highlights Leading player in an increasingly attractive industry 1 with above GDP growth driven by broad application range that favors large-scale global players 2 Favorable supply / demand ou
Slide 84: Macro trends support above GDP demand growth
1 Macro trends support above GDP demand growth across diverse customer industries and regions Polycarbonates industry demand Polycarbonates by application CAGR Accelerated growth 2014A-2020E 2014A – 2020E (’000kt) CAGR 2014A-2020E GDP 3.4%(a) APAC 5.4% 4.6% EMEA 3.2% 4.9 GDP 2.7%(a) NAFTA 3.0% 1.6%
Slide 85: Top 2 players with stable industry positions
1 Top 2 players with stable industry positions Competitive environment of polycarbonates industry Global capacity by producer Industry Covestro position Others SABIC Trinseo 10% 29% Product and application development 9% Required to serve customers capabilities in all key regions Teijin with global
Slide 86: Expected demand to outgrow industry capacity development
2 Expected demand to outgrow industry capacity development Polycarbonates industry supply Polycarbonates net capacity additions(a) Polycarbonates net capacity development by region(a) kt kt +1,170 +4.6% +565 +1.9% 195 5,380 635 5,380 165 90 4,815 30 85 4,815 (70) – DOW (US) (b) + Covestro 72% of + S
Slide 87: Increasing utilization rates expected to drive positive margin development
2 Increasing utilization rates expected to drive positive margin development Polycarbonates industry utilization outlook Polycarbonates industry supply / demand 91% 87% 87% 86% (c) 84% 83% 82% 81% 78% 1,599 76% 1,418 75% 1,062 1,046 978 5,380 5,380 5,020 5,185 4,880 4,815 4,845 4,930 4,920 4,755 4,5
Slide 88: Positioning and access to customers is key
3 Positioning and access to customers is key PCS global asset footprint and world-scale plants(a) in all key regions Primary production plants Compounding plants Sheet plants • Production of polycarbonate resin for either external • Refinement of polycarbonate resin with color and / or • Production
Slide 89: State-of-the-art production site in largest growth region
3 State-of-the art production site securing leading position in largest growth region Covestro production site in Shanghai, China Expansion in Shanghai sufficient to support demand growth without new world-scale plant until 2020E in APAC(a) Supply / Demand in APAC (kt) 3,230 3,070 2,350 2,435 2,130
Slide 90: Broad access to customer applications and regions
4 Broad access to customer applications and regions allows for optimized risk distribution and asset utilization Covestro market access Competitive position of Covestro(a) Advantages of broad play Broad range Reduced exposure to cyclicality of applications spectrum SABIC Covestro single customer ind
Slide 91: Material, application, and production know-how ensure leading market access
4 Material, application, and production know-how ensure leading market access and development PCS innovation case study Customer product development Customer Material & concept New application Scale up & customer requirements development technologies production Premium Automotive Interior Door Trim
Slide 92: Recent acquisition is critical step to leading position in automotive and IT
4 Recent acquisition is critical step to building a leading position in automotive and IT industries Polycarbonate composites What customers have been looking for What Covestro aspires to provide High performance material Important material for high-end IT, automotive, to support broad and consumer
Slide 93: PCS margins linked to industry utilization rates
5 PCS margins linked to industry utilization rates PCS EBITDA trajectory PCS adj. EBITDA Margin and industry utilization rates 91% 87% 87% (b) 86% 6.6% 5.7% 84% 83% 82% 3.6% 81% 78% 76% 75% 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E 2020E Industry utilization rate (%)(a) PCS adj. EB
Slide 94: Utilize superior market access and technology leadership for profitable growth
Utilize superior market access and technology leadership for profitable growth PCS business strategy Key pillars of PCS strategy Implementation Leverage broad access to applications and geographies to drive growth Strengthen collaboration with global leaders in customer industries through Capture ma
Slide 95: Prepared for strong recovery in financial profile and cash flow generation
Prepared for strong recovery in financial profile and cash flow generation PCS financial outlook Impact on Financial metric Business plan drivers Outlook(a) cash flow Above GDP demand growth driven by automotive, electrical and electronics, and construction Covestro volumes expected to outpace deman
Slide 96: Section 7 – Coatings, Adhesives and Specialties (CAS)
Section 7 – Coatings, Adhesives and Specialties (CAS) covestro.com
Slide 97: Niche enablers business focused on the high-end of the value chain
Niche enablers business focused on the high- end of the value chain CAS at a glance Global leading supplier of high performance materials to the coatings and Active components for surface coatings adhesives industry and other specialties (films, elastomers, textiles, medical, cosmetics) Inventor of
Slide 98: Solving multi-dimensional, complex problems in a diverse application landscape
Solving multi-dimensional, complex problems in a diverse and fragmented application landscape Industry challenge Coatings, Adhesives, Sealants and Specialties Protect – Bond – Seal – Decorate – Functionalize surfaces Provide potential for wide variety of solutions depending Addressed by different up
Slide 99: Focused on selected high-value part of PU resins industry
Focused on selected high-value part of PU resins industry CAS product lines Total PU Resins volume: 2,600kt Others Industrial 34% Furniture Corrosion 22% Protection Auto 9% OEM Metal 13% Construction Auto Concrete Refinish 10% 12% Aliphatic Coatings: 1,700kt 10% Others Aromatic 15% Packaging 34,400k
Slide 100: Managing complexity in a capex-light industry
Managing complexity in a capex-light industry 2,300+ products derived from 6+ monomers Raw Materials / Amines Monomers Total CAS Products Customers Industries 4+ 6+ 2,300+ 4,300+ 10+ Oligomers Coatings Automotive HDA NDA HDI NDI HDI-Trimers Biurets Construction H12MDI IPDI Alophanates IPDI-Trimers W
Slide 101: Competitive advantages from ability to serve profitable niches
Competitive advantages from ability to serve profitable niches in diverse end-markets CASe(a) application portfolio diversity Industrial Others Plastics 7% Automotive & Coil 48% Construction Transportation 3% 45% 33% Others Factory applied 26% metal Construction 5% 7% Other Industries Sealants Const
Slide 102: Diverse end-markets are served through only 4 key product groups
Diverse end-markets are served through only 4 key product groups CAS product portfolio CAS sales breakdown Overview of CAS products(b) 2014A, % Description By End-Market Others Automotive / 38% Transportation Aliphatic Polyurethane resins derived from aliphatic 30% monomers including HDI, IPDI, H12M
Slide 103: Global industry leader with high and resilient profitability
Global industry leader with high and resilient profitability CAS Key Investment Highlights 1 High-end solution provider to intrinsically complex customer industries unlocking above-average growth potential 2 Market-driven innovation capability and customer proximity help create new application space
Slide 104: PU-based materials expected to outgrow industry
1 PU-based materials expected to outgrow industry based on unique characteristics CASe(a) industry growth Characteristics of PU-based coatings / Polyurethane products are growing above average adhesives across selected key end-markets Volume CAGR 2014A – 2020E 8% Highly versatile chemistry; allows t
Slide 105: PU-based products' performance allow premium pricing
1 PU-based products’ performance allow premium pricing Focus on higher value-added applications CASe(a) volume and value breakdown by application Price index of coatings (end-products) % of total Price index % Primary CAS Target Segments 44% 41% 219% 31% 32% 184% 24% 22% 119% 100% 5% 3% Decorative I
Slide 106: Long-term relationships with each link of the value chain
2 Long-term relationships with each link of the value chain CAS forward marketing CAS delivers tailored solutions (illustrative: textile coating industry) Brands CAS Coatings Coated fabric Article raw materials formulator manufacturer manufacturer Development partners account for almost Quote from 2
Slide 107: Global site set-up provides proximity to end-markets and customers
2 Global site set-up provides proximity to end- markets and customers CAS global asset base Selected customers Comments Production Technical centers Specialties Development partners Three world-scale monomer Technical centers in all key Specialty films, elastomers production hubs in all key regions
Slide 108: Strong track record of product innovation leads to competitive differentiation
2 Strong track record of product innovation leads to continued competitive differentiation CAS innovation strategy History of robust product innovations Innovation expenditure and revenue from new products 2014A, % Innovation spend Split of revenue by launch date Polyaspartics Desmodur® N Process Pr
Slide 109: Recent successful launches underscore innovation leadership
2 Recent successful launches underscore innovation leadership in isocyanate derivatives industry Selected CAS innovation projects Desmodur® eco – PDI: BLULOGIQ – New thermolatent 1 2 3 INSQIN® Waterborne PU bio-based PU-crosslinker hardener Pentamethylene diisocyanate (PDI) contains Might enable tem
Slide 110: Holding global leadership positions across entire portfolio
3 Holding global leadership positions across entire portfolio CAS competitive positions Competitive global landscape in derivative products(a) Highlights Aliphatic isocyanate Aromatic isocyanate CAS is the inventor of aliphatic isocyanate derivatives for the Polyurethane dispersions derivatives deri
Slide 111: Critical success factors underpin CAS strong position
3 Critical success factors underpin CAS strong position Barriers to entry for derivative products Barriers to entry in derivatives CAS position Diversity of end-markets and products More than 2,300 products supplied to offered over 4,300 customers Economies of scope Niche applications with customize
Slide 112: Global leadership position supported by an attractive industry structure
3 Global leadership position supported by an attractive industry structure CAS value chain position for isocyanate derivatives Raw Materials / Amines Monomers / Isocyanate derivatives 4,300+ Customers Over 10 Industries Invista PPG Volkswagen Sherwin-Williams Volvo Axalta BMW Ascend Toyota H.B. Full
Slide 113: Best-in-class production technology
3 Best-in-class production technology CAS backward-integration into monomers Global aliphatic monomer capacities Barriers to entry in monomers CAS position HDI, IPDI, H12MDI Financial resources CAS operates 3 world- Engineering and know-how required capability to scale HDI plants across to build wor
Slide 114: High margin resilience over time demonstrates specialty nature of business
4 High margin resilience over time demonstrates specialty nature of business CAS financial performance Through the cycle production and profitability overview Global crisis with Competitor start up V shape recovery HDI APAC region Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 115: Growing portfolio-adjusted revenues and EBITDA margin
4 Growing portfolio-adjusted revenues and EBITDA margin CAS historical financial performance(a) Net sales and growth (€m) From 2012A until 2014A, net sales primarily driven by CPA CAGR 2012A – 2014A: 1.6%(b) positive volume effect (+4.9%) offset by negative sales 5.4% price (-1.6%) as well as negati
Slide 116: Building on strengths to further grow the bottom line
Building on strengths to further grow the bottom line CAS business strategy Key pillars of CAS strategy Implementation Continuously provide high-end solutions based on market-driven innovation capability and customer proximity Secure high returns in Fine-tune existing isocyanate derivatives and deri
Slide 117: Delivering sustainable, strong cash flows to Covestro
Delivering sustainable, strong cash flows to Covestro CAS financial outlook Impact on Financial metric Business plan drivers Outlook(a) cash flow Driven by above GDP growth end-markets Substitution of other chemistries through continued innovation Sales at CAS Increased quality requirements for coat
Slide 118: Section 8 – Financials
Section 8 – Financials covestro.com
Slide 119: Covestro live and stand-alone on 1 September 2015
Covestro live and stand-alone on 1st September 2015 Organizational overview Organizational structure and corporate functions Business Units PUR PCS CAS Others / Consolidation MDI BMI Corporate Functions Strategic PC and Industrial TDI RES Business Entities PC-blends Operations Reconciliation Polyeth
Slide 120: Basis of financial preparation
Basis of financial preparation IPO financials based on 2012A – 2014A audited(a) Combined Financial Statements for Covestro Group accounts prepared in accordance with IFRS for the years 2012A, 2013A and 2014A Covestro Combined Financial Statements for IPO, to a limited extent, deviate from historical
Slide 121: Limited carve-out adjustments compared to historical Bayer AG Segment Reporting
Limited carve-out adjustments compared to historical Bayer AG Segment Reporting Covestro Combined Financial Statements Net sales and growth Comments (€m) (2.2)% (2.2)% 3.7% 3.6% Growth Limited deviations from publicly available Bayer 11,491 11,610 11,238 11,357 11,651 11,761 Segment Reporting financ
Slide 122: Independent setup of Covestro without major additional costs
Independent setup of Covestro without major additional costs and with mid-term savings potential Carve-out from Bayer Group Services provided by Bayer pre carve-out Replacement during carve-out Service provider Services Corporate services Termination of several intra-group service agreements and Bay
Slide 123: Covestro positioned to deliver margin expansion and cash flow growth
Covestro positioned to deliver margin expansion and cash flow growth Key financial highlights 1 Solid core volume (kt) growth over the period 2012A – 2014A (+2.3% CAGR) driven by PUR and PCS core volumes and impacted by divestments of lower margin CAS non-core activities Historical track record of p
Slide 124: Solid historical financial performance
1 Solid historical financial performance 2012A-2014A historical financial performance 2013A 2014A (€m) Volume 0.6% 6.2% Price (0.2)% (1.5)% Performance 2012A-2014A Currency (2.4)% (0.8)% Net sales and growth Net sales primarily driven by volume growth utilizing available Portfolio (0.2)% (0.3)% Tota
Slide 125: Solid historical core volume growth
1 Solid historical core volume growth 2012A-2014A historical volume progression Volume growth bridge (2012A – 2014A) (kt) Net sales volume effect (€) +0.6% Net sales volume effect (€) +6.2% 10,412 10,174 +4.8% +0.6% 10,379 +2.3% (2.0)% 200 38 (9) (196) (0.2)% (3.1)% 6,235 6,039 6,077 4,144 4,135 4,3
Slide 126: Strong recent momentum illustrating profitability potential
1 Strong recent momentum illustrating profitability potential Q1 2015A financial performance Net sales and growth Significant net sales increase in Q1 2015A driven by (€m) 3,014 positive currency effects and volume growth partially offset by lower selling prices 7.5% PUR net sales volumes slightly i
Slide 127: Improving performance in functional cost supporting profitability
1 Improving performance in functional cost supporting profitability Profit and loss statement Key P&L items Highlights (€m, except stated otherwise) 2012A 2013A 2014A Overall, decline of functional costs driven by continuous improvement measures: Net Sales 11,610 11,357 11,761 % growth n/a (2.2)% 3.
Slide 128: Cost of goods sold driven by raw material cost, capacity expansions and volume
1 Cost of goods sold driven by increases in raw material cost, capacity expansions and volume growth Cost of goods sold Cost of goods sold (COGS) Comments (€m) Changes in raw material costs / prices generally passed on to customers depending on supply / demand situation of the industry and overall 8
Slide 129: Key raw materials secured through long-term contracts
1 Key raw materials secured through long-term contracts Raw material exposure Major raw material split (2014A) Comments Crude oil defines floor price for majority of raw materials used, additional charges on crude oil price depend on the specific supply / demand dynamics in relevant raw material mar
Slide 130: Covestro benefitting from recent depreciation of Euro
1 Covestro benefitting from recent depreciation of Euro against major currencies Currency exposure Sales by region (2014A) Comments According to Bayer practice c. 50% of anticipated and NAFTA 100% of booked transactional currency exposure has been 26% hedged EMLA Covestro will hedge 100% of its book
Slide 131: Historical financial performance including minimal special items
1 Historical financial performance including minimal special items Overview of historical special items EBITDA impact of special items Comments (€m, except stated otherwise) 2012A 2013A 2014A Mainly related to severance payments in 2012A due to closure of two production PUR (24) (4) (9) lines of spr
Slide 132: Historical cash flow influenced by operating performance and growth investments
1 Historical cash flow influenced by operating performance and growth investments Cash flow statement Key free cash flow items Comments (€m, except stated otherwise) 2012A 2013A 2014A FOCF affected by investments in asset base as well as changes in net working capital EBIT 542 391 517 Inventories ma
Slide 133: Well-managed working capital with upside potential
1 Well-managed working capital with upside potential Working capital development DOH(a), DSO(b) and DPO(c) Comments 72 62 71 Net working capital averaged €1.8bn in the period 2012A-2014A, representing 44 43 48 15% – 17% of net sales Net working capital is monitored at (53) (51) (57) segment level ba
Slide 134: Limited need for additional capital investment in the planning period
2 Limited need for additional capital investment in the planning period Historical capex investments Total capex(a) spent since 2005 of c. €7bn of which c. €4bn growth capex (€m) 136% 149% 178% 165% 84% 88% 99% 97% 91% 111% 8.5% 8.5% 7.4% 6.8% 6.8% 5.6% 5.6% 5.7% 5.0% 5.3% 889 831 753 693 642 607 65
Slide 135: Disciplined future investments in growth regions
2 Disciplined future investments in growth regions Planned investments Planned 2015E – 2017E investment program Investment criteria and process ROCE(a) Focused on growth regions NPV (Net Present Value) Value POT (Pay-Off Time) Strategy score: based on NAFTA Strategy long-term business attractiveness
Slide 136: Multiple levers for EBITDA growth in the future
2 Multiple levers for EBITDA growth in the future Building blocks for Covestro future profitability EBITDA Volume Asset Net cost Mid-term 2015E growth and optimization improvement EBITDA operating leverage 1 2 2 3 2 Ramp-up of world-scale asset base Fixed asset management cost Overhead cost savings
Slide 137: Capture market growth through well-managed ramp-up of world-scale assets
2 Capture market growth through well-managed ramp-up of world-scale assets Capacity outlook and growth initiatives Covestro capacity outlook Covestro growth initiatives New capacities Increased sales coming onstream; Leverage existing customer proximity and market volume through capex largely spent
Slide 138: Targeted gross savings of c. €420m well above expected inflation
2 Targeted gross savings of c. €420m well above expected inflation Structured profitability program Key measures Net savings potential by 2019E (€m) Rolling out fixed asset management cost Inflation of existing Fixed assets initiatives Targeted cost base management cost More efficient turnaround exe
Slide 139: Performance culture led by clear performance indicators
2 Performance culture led by clear performance indicators Incentive programs and key performance indicators … linked into Management Clearly defined KPIs … Incentive Programs Long-term incentive program (with cash settlement) over a vesting Share period of 4 years measured by absolute price (Covestr
Slide 140: Attractive and stable dividend policy
3 Attractive and stable dividend policy Dividend policy Efficient capital structure and strong free cash flow allowing for sustainable dividend policy Target dividend pay-out aimed to be largely in line with peers Covestro envisages a dividend pay-out ratio of c. 30 – 50% based on Covestro Group IFR
Slide 141: All primary IPO proceeds to repay Bayer intra-company debt
4 All primary IPO proceeds to repay Bayer intra-company debt Offer Structure Covestro net debt development Post carve-out Pre carve-out 1st September 2015 FY2014A (Economic separation) At IPO Post IPO Additional carve-out debt Contribution into and pension liabilities Covestro capital Target capital
Slide 142: Target financial profile post IPO allowing for investment grade credit rating
4 Target financial profile post IPO allowing for investment grade credit rating Target capital structure Covestro pre-IPO primarily funded via intra-company loans (ICLs) from Bayer AG Target post IPO capital structure: 2.5x – 3.0x 2015E adj. EBITDA (net financial debt including pension liabilities)
Slide 143: Medium-term financial outlook confirms Covestro's growth momentum
Medium-term financial outlook confirms Covestro’s growth momentum Financial outlook 2013A 2014A Q1 2015A 2015E target(c) Mid-term target(c) Mid-term outlook 11,357 11,761 3,014 Robust GDP+ growth driven Net sales by core volume growth (kt) (growth) and growth into asset base (2.2)% 3.6% 7.5% Continu
Slide 144: Section 9 – Update on H1 2015A Financials
Section 9 – Update on H1 2015A Financials covestro.com
Slide 145: H1 2015A performance fully on track for 2015E outlook
H1 2015A performance fully on track for 2015E outlook Key highlights H1 2015A Strong core volume (kt) growth of +4.3% y-o-y across all regions Net sales development of +9.5% y-o-y benefitting from solid volume expansion and positive currency effects Substantial increase in profitability with H1 2015
Slide 146: Strong recent momentum illustrating profitability potential
Strong recent momentum illustrating profitability potential H1 2015A financial performance (€m) 2013A 2014A H1 2015A Volume 0.6% 6.2% 4.9% Performance H1 2015A Price (0.2)% (1.5)% (5.4)% Net sales and growth Currency (2.4)% (0.8)% 10.0% Significant net sales increase in H1 2015A driven by Portfolio
Slide 147: Positive volume development across all regions
Positive volume development across all regions H1 2015A regional developments Net sales by region Performance H1 2015A (€m) (2.2)% 3.6% H1 2015A net sales development driven by double-digit growth rates in NAFTA (+19.0%) and APAC (+18.5%) 11,610 11,357 11,761 9.5% 3,166 3,062 3,254 H1 2015A net sale
Slide 148: Financial performance driven by positive core volume development
Financial performance driven by positive core volume development H1 2015A volume progression Core volume (kt) progression Development H1 2015A (kt) Core volumes are the focus of business operations and are defined as all PUR, PCS and CAS volumes not (0.2)% 4.8% initiated by opportunistic business op
Slide 149: PUR – Continuous solid performance in challenging environment
PUR – Continuous solid performance in challenging environment PUR H1 2015A financial performance Net sales and growth Performance H1 2015A (€m) H1 2015A net sales growth driven by positive currency effects (+9.6%) and volume increases (+4.1%), 5,993 6,052 6,282 primarily in APAC and EMLA, partially
Slide 150: PCS – Strong volumes growth and significant margin improvement
PCS – Strong volumes growth and significant margin improvement in H1 2015A under favorable market situation PCS H1 2015A financial performance Net sales and growth Performance H1 2015A (€m) H1 2015A strong net sales growth driven by significantly higher volumes (+7.6%) in all regions and 2,822 2,822
Slide 151: CAS – Growing portfolio-adjusted revenues and EBITDA margin
CAS – Growing portfolio-adjusted revenues and EBITDA margin CAS H1 2015A financial performance Net sales and growth Performance H1 2015A (€m) H1 2015A strong net sales growth driven by volume growth (+5.6%) and positive currency effects (+9.5%), 1,984 1,928 partially offset by slightly lower selling
Slide 152: Glossary
Glossary covestro.com
Slide 153: Glossary
Glossary ABS refers to acrylonitrile butadiene styrene BPA refers to bisphenol A, a raw material for the production of polycarbonates Adj. refers to adjusted BTS refers to Bayer Technology Services AGM refers to Annual General Meeting CAGR refers to compound annual growth rate APAC refers to the Asi
Slide 154: Glossary (cont'd)
Glossary (cont’d) DCDS refers to DirectCoating / DirectSkinning, cost efficient one-step PCS processes HKD refers to Hong Kong Dollar used to manufacture premium parts with tailor-made surface properties ICIS refers to the Independent Chemical Information Service, the DOH refers to days inventory on
Slide 155: Glossary (cont'd)
Glossary (cont’d) LCD refers to liquid-crystal-displays NWC refers to net working capital which is calculated as inventories plus trade LED refers to light-emitting diode accounts receivable less trade accounts payable LEED refers to Leadership in Energy & Environmental Design, a green building ODC
Slide 156: Glossary (cont'd)
Glossary (cont’d) RCF refers to revolving credit facility TDA refers to toluenediamine RES refers to resins TDI refers to toluene diisocyanate RIR denotes number of incidents recordable after Occupational Safety & Health Tier-1 suppliers refer to the most important members of a supply chain, which d
Slide 157: Disclaimer
Disclaimer THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AT THE ANALYST PRESENTATION ON JULY 23, 2015. BY ATTENDING THE MEETING WHERE THIS PRESENTATION IS MADE YOU AGREE TO BE BOUND BY THE FOLLOWING TERMS AND CONDITIONS. THIS PRESENTATION, WHICH