media day 2017 the new lanxess segment … media day 2017 the new lanxess segment specialty...
TRANSCRIPT
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Media Day 2017
The new LANXESS segment Specialty Additives
Anno Borkowsky, Head of Business Unit Additives
Philipp Junge, Head of Business Unit Rhein Chemie
Cologne, September 5, 2017
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Agenda
New LANXESS segment Specialty Additives
Business Unit Additives
Flame Retardants
Lubricants Additives
Bromine Solutions
Business Unit Rhein Chemie
Rubber Additives
Colorant Additives
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Segment benefits from rising customer requirements
Customers require more specialized and efficient solutions
Ma
rke
t g
row
th p
ote
nti
al
Technology level
Solid growth perspective
* LANXESS Segment Specialty Additives core markets ( E&E, Transportation, Construction, General Industries) / Source: World Industry Service & LANXESS assumptions
GDP
Regulatory frame
Average growth rate
(CAGR) of additives*:
~ 4 % until 2021
Megatrends Urbanization
and Mobility
Increasing demand for
plastics and polymers
ADD RCH
low high
low
h
igh
Product performance
Efficiency in use
High added value
relative to customer
costs
4
Agenda
New LANXESS segment Specialty Additives
Business Unit Additives
Flame Retardants
Lubricants Additives
Bromine Solutions
Business Unit Rhein Chemie
Rubber Additives
Colorant Additives
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Key Facts
Business Lines
Business Unit Additives at a glance
Head of Business Unit: Anno Borkowsky
Employees: about 2,000
Customers: around 2,000 in more than 100 countries
Products: more than 1,100
Lubricant Additives
Plastic Additives
Bromine Solutions
ADD RCH
6
Well diversified set-up
Sales by end use Sales per region
APAC
EMEA
AMERICAS
42%
22%
36%
Construction
Transportation
Distribution
IndustrialManufacturing
Agro
E&E
Oil & Gas
ConsumerProducts
Energy
Others
14%
22%
31%
13%
3%
3%
4% 4% 3%
3%
ADD RCH
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LANXESS drives innovation & technology
Flame retardants getting more sophisticated
Mark
et
accep
tan
ce
Technology level low high
low
h
igh
Polymeric FR
Reactive FR
Oligomeric FR
Monomeric FR
Evolution of Flame retardants (FR)
Strategic focus
ADD RCH
# 1/2 in brominated flame
retardants in Europe
and # 2 globally*
Among the top global players
# 2 in phosphorous flame
retardants in Europe
and # 3/4 globally*
Market shares:
* Source: European Commission, IHS Specialty Chemicals Update Program – Flame Retardants 2014
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Lubricant Additives: LANXESS with fully integrated value chain
Finished
Fluids
Synthetic base stocks
LANXESS
Packages
Additives
Customers
Cu
sto
me
rs
Greases Chemical
Intermediates
Competitor B
Competitor A
Competitor C
ADD RCH
Illustrative
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Strong backward integration
Cost competitive bromine
extraction
Leading transportation fleet
for elemental bromine
Bromine reserves last
more than 75 years
Bromine Solutions: an integrated leading player with a strong and diverse portfolio
Leading market position
LANXESS Bromine production is located in El Dorado, Arkansas, USA
Chlorine
Brine fluids
Clear Brines
Fumigants
Others
Bromine Derivatives Elemental Bromine Bromine Reserves
Elemental bromine production
Merchant sales
Flame retardants
ADD RCH
Bromine
Top 3 bromine reserves*
* ICL, Albemarle and LANXESS
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Business integration and implementation
of synergies
Leverage improved regional footprint
On the growth path
Integrate
Enhance
Develop
Realize cross-selling opportunities and
increase competitiveness
Extent business focus on Asia Pacific
Strategic focus on product development
Specialize and innovate our product portfolio
ADD RCH
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Agenda
New LANXESS segment Specialty Additives
Business Unit Additives
Flame Retardants
Lubricants Additives
Bromine Solutions
Business Unit Rhein Chemie
Rubber Additives
Colorant Additives
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Key Facts
Business Lines
Business Unit Rhein Chemie at a glance
Head of Business Unit: Philipp Junge
Employees: about 1,000
Customers: around 3,000 in more than 120 countries
Products: more than 2,000
Rubber Additives
Colorant Additives
ADD RCH
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Focus on technical solutions for attractive end markets (selection)
Colorant
Additives
Business
(CAB)
Automotive Electronics Plastics Paints & Coatings Other
Automotive Other Rubber Tire Coatings Other Rubber
Additives
Business
(RAB)
ADD RCH
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Resilient set-up
Sales by end use Sales by region
ADD RCH
42%
33%
25%
EMEA APAC AMERICAS
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High service level and top
technical expertise
Outstanding regulatory*
knowhow
Leading in environmental
sustainability and safety
Competitive advantages Rhein Chemie’s additives focus on high value-add solutions
Illustrative
Bubble size illustrates sales volumes of product groups
* E.g. REACH, FDA, JHOSPA (Japan Hygienic Olefin and Styrene Plastics Association) as well as all other regional regulatory initiatives
Technical
support/
Service
needed
Colorant Additives Rubber Additives
Solutions for technically demanding customers ADD RCH
High
added value
for customers
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Portfolio
Regional
set-up
Quality
Service
level
Regulatory
Rubber Additives benefit from a unique and differentiated business set-up
Strong mix of business characteristics
global
high
high
strong
wide
local
low
low
weak
narrow
LANXESS Rubber Additives
Competitor landscape
Illustrative
ADD RCH
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Accelerate with smart solutions
Enlarge
Enhance
Develop
Gain market share in both Americas and APAC
by pursuing further market consolidation
Implement planned organic investments in
capacity expansions
Provide innovative products & services for
existing and new business fields
ADD RCH
18 Investor Day - September 2017