covestro.com

Pushing boundaries within industry collaborationDr. Markus SteilemannMember of the Board of Management Chief Commercial Officer

Daniel MeyerHead of the Business UnitCoatings, Adhesives, Specialties

Innovation at Covestro

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At the heart of our company

Innovation is built on a strong history of R&D

Innovation is more than R&D

Innovation is everyone and everywhere

Covestro: A start-up

with80 years of history

Strong history of R&D

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80 years of ideas and inventions

1937Otto Bayer discoverspolyure-thanes

1953Hermann Schnelldiscoverspolycarbonates

1954Kuno Wagner invents crosslinking agents for lightfast polyurethane coatings

1962Polyurethane rigid foam launched as insulation for cooling devices

1967Bayer pre-sents the first carmade almost entirely from plastic

1982Special grade of Makrolon® used in optical storage media

1985First Bayblend®

flame retardant grades for business machines

1991Introduction of memory foam in mattress industry

1995Makrolon®

based films for highsecurity documents

2001Constructionstart atCovestrointegratedsite atShanghai, China

2011Shanghai TDI plant with new gas-phase technology

2012Introductionof microcell technology,with improved insulation efficiency

2015

2016

First head lampmade fromplastic

First bio-based hardener for

coatings: Desmodur®

eco N

First plant forCO2-basedpolyetherpolyolsin Dormagen

Innovation is more than R&D

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New innovation model

ProductCustomer

Business model Function

Innovation

Example: Logistics• Consideration of extreme

weather conditions for deliveries to customers

Example: Fashion• Sustainable materials

and more for the globaltextile industry

Example: Energy• Management system for

optimal energyconsumption of plants

Example: Coating• New components from

renewable resources

Innovation is everyone & everywhereOpen innovation – internally and externally

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Internal• Create a culture of innovation

throughout the company• Foster networking and collaboration

External• Embrace open innovation• Collaborate with entire value chains

and academia

A world leading company in polyurethane coating technologyCovestro conducts global and regional production, R&D activities and technical support

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FilmsDeerfield

IsocyanatesBaytown

IsocyanatesSanta Clara

ElastomersCheadle Hulme

IsocyanatesLeverkusen

Isocyanates, Resins, FilmsDormagen

ElastomersRomans

FilmsBomlitz

Elastomers Tianjin

IsocyanatesNiihama

FilmsMap Ta Phut

Isocyanates, ResinsCaojing

IsocyanatesAnkleshwar

Isocyanates, ResinsEl Pratworld scale unit

Sustainability drives innovationClear objectives along the whole value chain

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Ouroperations

Ourlogistics

Customeroperations

Use ofproduct

End-of-life

Our rawmaterials

PEOPLEPLANETPROFIT

Reduce impact from …

Reduce impact from …

Enable our partners

Reduce impact from …CO2CO2

Foster Life Cycle Thinking

Drive development of PPP product solutions (People, Planet, Profit)

Closing the carbon loopBy using biomass or CO2

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Polymers ApplicationChemicalsFeedstocks

Biotechnology or Chemocatalysis

Covestro is committed to “eco”-products and expands portfolio

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References prove: bio-based* solutions do matter to the industry

High performance enabled by nature

Desmodur® eco N

Bayhydur® eco

* Biomass source is starch from non-edible plants

Impranil® eco

A versatile eco solution for coatings: Desmodur® eco N

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First aliphatic crosslinker with significant renewable content and high performance

• ~30 % reduction in carbon footprint

• 70 % bio-based raw material

• 100 % performance

First bio-based automotive 2K PU clearcoat tested

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• Successful coating of Audi Q2 under near-series conditions

• Based on proven 2K PU technologyfulfilling high performance standards

• Application on existing coating linespossible

• Helps customers to lower carbonfootprint of their products

Audi: Successful near-series trial / BASF: Satisfied with performance

Success story: Desmodur® eco N 7300

First locomotive protected by bio-based railcar clear coating

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• Sustainable coating as solution for railway transportation

• Excellent performance with lower carbonfootprint

• 70 % higher scratch resistance andgloss stability than standard system*

• High resistance against graffity removingagents

Lankwitzer Lackfabrik and Newag see added value for customers

* Amtec Kistler car wash simulation

Success story: Desmodur® eco N 7300

Bayhydur® eco for more sustainable furniture coating

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First bio-based hardener for 2K waterborne coatings

• ~30 % reduction in carbon footprint

• 66 % bio-based content

• 100 % performance

Design furniture protected by 2K bio-based waterborne coating

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Feasibility study: RiFRA regards Sirca coating as a step towards a more sustainable living

• Reduces use of fossil resources for wood coatings

• Protects furniture in demanding environments such as bathrooms and kitchens

• High hardness and chemical resistance

Success story: Bayhydur® eco 7190

A new dimension in sustainable textile coating: Impranil® eco

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• Latest product family in INSQIN® range

• INSQIN® enables significantly improved carbon footprint and water saving in coated textiles lifecycle

• Impranil® eco contains up to 65 % renewable content

• Enables brand owners and coated textile manufacturers to meet their sustainability targets

Bio-based aqueous PU dispersions for synthetic coated fabric materials

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Covestro generates value by enabling unique design at competitive cost

• Manufacturing of coated plastic components in only one production step instead ofconventional 5-step mold and coat process

• Up to 40 % cost reduction potentialand up to 75 % energy savings

• Close to 100 % solid coating system

• Covestro owns trial plant for coatingapplication and injection molding

• One stop shop with full material expertise

DirectCoating is pushing boundaries in design freedom

Buttons by touchTransparent

coating

Blackcoating

Blacksoft-feelcoating Ambient

lightingline

High-quality decorative car components from a single mold

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• New attractive design possibilities such as range of colors, surface structures and haptic impressions will enhance car interiors

• High quality surfaces without reworking

• Low VOC coating technology – close to100 % solid

• Cost- and energy-efficient process

Success story with Votteler Lackfabrik shows: technology is breaking through – now!

Success story: DirectCoating

Efficient polyurea system for car refinishing clearcoat

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• Outstanding appearance and superb performance easily achieved

• Increased productivity and reduced costs:Ready to handle and polish after 20instead of conventional 100 minutes, (oven baking or infrared)

• Flexibility with curing methods: Air drying at ambient temperaturespossible

Covestro and U-Pol enable body shops to combine high productivity with outstanding appearance

Success story: Desmophen® NH & Desmodur® N

Corrosion Protection• Less coating layers and faster curing

without compromising long-term performance

Flooring• Faster curing for faster return to

usage of building for asset owners

Efficient coating with PASQUICK®

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Polyaspartics technology offers advantages along the value chain

• High performance corrosion protection:First application in public infrastructure at “Citadel Bridge” in Hamburg

• Saves costs thanks to one layer less –with same performance of standardcoatings

• Bridging the gap to faster corrosion protection: Cures 4 times fasterthan standard coating

High performance corrosion protection with higher productivity

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Covestro, Dresdner Lackfabrik novatic and NE Sander Eisenbau reduce public spending

Success story: PASQUICK®

An upturn for wind turbines

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Covestro and Hempel helped Alucrom to increase production

• Higher productivity: More wind turbinetowers coated per day through shorterdrying time

• 30 % less VOC emissions

• Highest quality standards maintained

Success story: PASQUICK®

A new start for an outdated parking garage

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Covestro and USL StructureCare provide durability and aesthetics for one of the UK’s most successful shopping centres

• 18,000 square meters of park deckscoated

• PASQUICK® technology enabled fast return to service

• USL received British Parking Award 2016

Success story: PASQUICK®

• Highly aesthetic and durable floor coating

• Easy-to-clean properties

• Fast return to service

Refurbishment of technical center floor

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Europe Resine and Krypton Chemical cooperated on quick refurbishment of Covestro lab

Success story: PASQUICK®

Pushing boundaries within industry collaboration

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Hardeners have significant influence on coatings properties• Significant added value to the resulting

coatings – such as high flexibility, self-healing capabilities and exceptional adhesion

• More efficiency in coating processes along the value chain

• We offer solutions for waterborne, high solid and bio-based systems

We are partner of choice for polyurethane technology

Where we will push boundaries in the future

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• We stay committed to aliphatic hardeners and to developing more sustainable products based on PU technology

• We are committed to the further development of bio-based solutions

• We will further drive the development of highly efficient coating processes such as direct coating and digital printing

• We are committed to close co-operation with our partners along the value chain

covestro.com

Covestro @ the ECS 2017Q&A Session

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Forward-looking statements

This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG.

Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports, which are available on the Covestro website at www.covestro.com.

The company assumes no liability whatsoever to update these forward-looking statements or to adjust them to future events or developments.