LANXESS builds world scale Nd-PBR rubber plant Mobility-driven growth for high-end synthetic rubber. Bernhard Düttmann, CFO June 01, 2011

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1 LANXESS builds world scale Nd-PBR rubber plant Mobility-driven growth for high-end synthetic rubber Bernhard Düttmann, CFO June 01, 2011

2 Safe harbor statement This presentation contains certain forward-looking statements, including assumptions, opinions and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of the company to differ materially from the estimations expressed or implied herein. The company does not guarantee that the assumptions underlying such forward looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the company or any of its parent or subsidiary undertakings or any of such person s officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Chart 2 BU PBR premium solutions for tomorrow's requirements Facts End uses 2010 LANXESS rubber split by grade Segment: Performance Polymers Sales: > 500 m Customers: >250 Production capacity: >800 kt/a (all rubber grades) Product groups - Polybutadiene rubbers - Styrene-butadiene rubbers Current production sites: - Dormagen (GE) - Triunfo, Cabo, Caxias, (BR) - Port Jérôme (FR) - Orange (US) Tire 71% Plastics 16% Lifestyle & leisure 6% Technical rubber 7% (Industrial & mining) Tread Undertread Sidewall Grip ESBR Performance rubbers* Effect of Nd-PBR in treads Nd-PBR Standard rubber Rolling resistance reduction Durability * Such as Nd-PBR and SSBR Chart 3 1

3 Globally number one in the performance rubber market Nd-PBR world map Capacities of leading suppliers* [kt] LANXESS NKNK Others NkNk Synthos Sibur Polimeri Karbochem KKPC Others Synthos Sibur Polimeri KKPC Karbochem Source: LANXESS, * view on 2011/2012 Chart 4 Manufacturers need high-end rubber to achieve an overall performance improvement for tires Global tire labeling legislation Actual tire classifications by grip and rolling resistance EU U.S. Japan EU: Required in November 2012 Attributes: rolling resistance, grip, noise U.S: Expected in Q for consumer tires Attributes: rolling resistance, grip, treadwear Japan: Introduced for rolling resistance and grip in January 2010, Korea expected to follow China & Brazil: Expected regulatory action in 2-3 years Grip E B B B A B RR* E E E E E E Rolling resistance still underperforming LANXESS high-performance rubbers reduce rolling resistance by 12%-14% Source: GTÜ and ACE, Six of the leading global tire producers; * Rolling resistance Chart 5 2

4 Great untapped potential from growing middle class in Asia Car ownership - Asian growth potential Growing middle-class in emerging countries Passenger cars per 1,000 inhabitants Population in millions 796 2, Western Europe United States Asia e People entering middle class* [m people] 1,600 1,400 1,200 ~800 m people 1, Brazil India China BRIC Left: Michelin estimates; Right: Goldman Sachs Global Economics Group, Is this the BRICs decade?, 2010; * Population with income >$6,000 and <$30,000/capita in BRIC countries Chart 6 Market for Nd-PBR expected to continue its growth path HP* rubbers expected to grow by ~10% p.a. Supply / demand for PBR [volumes] Tire labeling makes innovation in rubber grades visible to end-consumer Nd-PBR to become global standard for tires Emerging markets shift towards performance applications e 2013e 2015e Global nameplate capacity 90-95% capacity utilization Demand Nd-PBR to become global standard even in lifestyle and leisure applications Source: LANXESS estimates based on CMAI, SRI, LMC * HP = high performance Chart 7 3

5 LANXESS to build new Nd-PBR plant in Asia First global player with world wide manufacturing network Facts & Figures Location: Singapore, Jurong Island (close to BTR site) Site: most competitive with best-in-class technology Infrastructure: synergies with BTR (admin, HSEQ, energy) Start of production: H Capacity: up to 140 kt/a Distribution of cash outflows [ m] Capex: ~ 200 million Chart 8 Value creating investment in a premium business First world scale Nd-PBR production site in Asia Catering global mobility trend with sustainable growth outlook Attractive financials Further strengthening of segment and LANXESS profitability Chart 9 4

6 Contact detail Investor Relations Oliver Stratmann Head of Investor Relations Tel. : Fax. : Mobile : Oliver.Stratmann@lanxess.com Verena Simiot Assistant Investor Relations Tel. : Fax. : Mobile : Verena.Simiot@lanxess.com Tanja Satzer Constantin Fest Joachim Kunz Private Investors / AGM Tel. : Fax. : Mobile : Tanja.Satzer@lanxess.com Institutional Investors / Analysts Tel. : Fax. : Mobile : Constantin.Fest@lanxess.com Institutional Investors / Analysts Tel. : Fax. : Mobile : Joachim.Kunz@lanxess.com Chart 11 5

7 Investments of tire producers reflect growth trend Bridgestone USA: USD$11.3 m expansion of aviation tire capacity USD$2.2 b expansion in Brazil and India China: plus ~0.3 m car & truck tires/year Russia: plus ~1.4 m car tires/year USA: plus ~3 m tires/year Philippines:plus ~6 m tires/year USD$347 m investment in Russia China: plus ~11 m car tires/year China: plus ~11 m car tires/year China: plus ~2 m car & truck tires/year Brazil: plus ~4.5 m car tires/year plus ~0.2 m truck tires/year China: plus ~10.5 m tires/year USD$150 m expansion in USA Planning new tire plant in USA China: plus ~11.5 m tires/year Indonesia: plus ~10 m tires/year Mexico: plus ~5 m car & truck tires/year Brazil: plus ~40% increase tires/year India: plus ~2.2 m truck & bus tires/year plus ~2.9 m tires/year S. Korea: plus ~30 m tires/year China: plus ~1.5 m tires/year India: plus ~3.7 m car tires/year plus ~1.3 m truck tires/year Japan: Expansion of OTR tires Source: companies websites. Investments / expansions covered from 2011 to 2020 Chart 12 Mobility trend - global vehicle park continues to grow 1 bn vehicles Global light vehicle park shows sustained growth trend APAC Americas EMEA Increasing vehicle park: Global growth expected around 3% APAC with highest growth rates (approx. 5-7%) Americas and EMEA with lower growth rates of around 2% Secured demand for tires Source: J.D. Power 2011 Q1 Chart 13 6

8 Long-term commitment to the rubber hub Singapore New Nd-PBR and BTR plants share same site on Jurong Island Singapore site Jurong Island BTR PBR Use of excellent infrastructure Synergies with LANXESS butyl manufacturing Proximity and access to key markets Highly-skilled workforce Right environment for innovations, technology Local raw material supply Chart 14 New Nd-PBR facility strengthens LANXESS global Performance Butadiene Rubbers production network Dormagen, GE Headquarter Fribourg, S LANXESS PBR Strong global footprint with worldclass manufacturing base Orange, US Port Jérôme, FR Serving current and future requirements of performance oriented customers Cabo de Santo Agostinho, BR Duque de Caxias, BR Triunfo, BR Singapore Emerging markets shift towards performance applications LANXESS has strong footing in BRIC BU PBR: production site BU PBR: technical & marketing center Prepared to grow with demanding customers Chart 15 7