covestro.com

Clear course in challenging timesAnnual General MeetingJuly 30, 2020

Covid-19: Covestro sticks togetherManaging the crisis as a team with prudence and optimism

1

THANK YOU

to our employees!

July 30, 2020 │ Annual General Meeting

Covid-19: Covestro has maintained productionHealth of employees, business partners and customers comes first

2

Reliable supply tocustomers

Protective measures for employees

Maintaining supplychains

July 30, 2020 │ Annual General Meeting

Covid-19: Covestro shows global commitment Various aid campaigns all over the world to manage the coronavirus pandemic

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Programs to increase efficiency and decrease costs

Solid company financing

Reduction of investments to €700m

Adjustment of dividend by 50%

Solidarity measures to decrease labor costs

4

Navigating safely through the crisisActive crisis management ensures ability to act

Covestro is well-positioned to master the

crisis.

July 30, 2020 │ Annual General Meeting

Q2 2020 affected by COVID-19Proactive action ensures resilience amidst global corona crisis

5

Q2 2019 Q2 2020

-22,2%

1.1 %

-22.7%

Q2 2019 Q2 2020

-55

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Q2 2019 Q2 2020

3,2002,156

Q2 2019 Q2 2020

459 125

Core volume growth FOCF(in € million)

Sales(in € million)

EBITDA(in € million)

July 30, 2020 │ Annual General Meeting

2019: All targets achieved in challenging environmentDemand for innovative and sustainable products remains intact

2.0%

Core volume growth

€12.4bn

Sales

€473m

FOCF

8.4%

ROCE

EBITDA

€1.6bn

2019: All financial targets have been achieved!

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€300 to 700m

Low-to-mid-single-digit percentage range increase €1,500 to 2,000m

8 % to 13 %

July 30, 2020 │ Annual General Meeting

MANAGING THE CORONA CRISIS ON THE BASIS OF SOLID 2019 FINANCIALS

1,763648

23.9%

11.2%

FY 2018 FY 2019

7,3625,779

0.8% 2.3%

FY 2018 FY 2019

PUR – Significant increase in volume growthFY 2019 – Results for Polyurethanes

Sales (in € million)

Sales and core volume growth*

Volume growth (in %)

EBITDA margin (in %)EBITDA (in € million)

EBITDA and margin

8 * Reference figures from 2018 on were recalculated as of March 31, 2019, based on the definition of core businessJuly 30, 2020 │ Annual General Meeting

1,036536

25.6%15.4%

FY 2018 FY 2019

4,051 3,473

3.0% 2.7%

FY 2018 FY 2019

PCS – Continuous core volume growthFY 2019 – Results for Polycarbonates

9 * Reference figures from 2018 on were recalculated as of March 31, 2019, based on the definition of core business

Sales and core volume growth* EBITDA and margin

July 30, 2020 │ Annual General Meeting

Sales (in € million)

Volume growth (in %)

EBITDA margin (in %)EBITDA (in € million)

464 469

19.7% 19.8%

FY 2018 FY 2019

2,361 2,369

2.3% -1.0%

FY 2018 FY 2019

CAS – Stable sales and EBITDA at previous year‘s levelFY 2019 – Results for Coatings, Adhesives, Specialties

10 * Reference figures from 2018 on were recalculated as of March 31, 2019, based on the definition of core business

Sales and core volume growth* EBITDA and margin

July 30, 2020 │ Annual General Meeting

Sales (in € million)

Volume growth (in %)

EBITDA margin (in %)EBITDA (in € million)

1,4451,965

348 46

442

575 51

520

989

Solid balance sheetDecember 31, 2019: Committed to a solid investment grade rating

Others

1,793

FOCFDec. 31,2018

Interest Dividend Dec. 31,2019

Changes in pensions provisions

IFRS 16Adjustments*

-473

2,954in € million

Net financial debt Pension provisions

11 * Reflecting increase in lease liabilities as of December 31, 2019, in the course of IFRS 16 adoption July 30, 2020 │ Annual General Meeting

€0.70 €1.35 €2.20 €2.40 €1.20

Payout ratio in %*

Distribution of 40% of profit to shareholders

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Historical development of dividend and payout ratio

2015 2016 2017 2018 2019

Dividend per share (€)

* In relation to net incomeJuly 30, 2020 │ Annual General Meeting

32% 34%22% 25%

40%

Efficiency ensures ability to actTargets for short-term measures raised in the course of corona crisis

13

Structural measures:“Perspective“ efficiency program

Portfolio synergies maximized

Standard business streamlined

Efficiency increased

Central units reorganized

Differentiation fostered

Progress in 2019: €150mFocus in 2020: ~€130m

Short-term measures for additional savings

Original focus in 2020: ~€200mTargets raised: >€300m

Building maintenance

Procurement

Solidarity measures

SG&A costs

Savings of overall >€430m will be realized in 2020!!

July 30, 2020 │ Annual General Meeting

Precautionary measures to ensure solid financingSecuring sufficient liquidity in H1 2020

Syndicated credit facility

Working capital facility

Eurobonds

EIB-loan

€2.5bn €1.0bn

€500m €225m

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ü Standby backup liquidity reserveü Term of 5 yearsü Options to extend term

ü Continuous financing of ongoing business operations

ü Meanwhile partially repaid

ü Eurobonds issued by Covestroü Maturities of 5 and 10 yearsü More than 10 times

oversubscribed

ü Loan to strengthen research & development

ü Medium term fundingü Compliance with high ESG-

standards

PROGRESS IN STRATEGY IMPLEMENTATION ON OUR WAY TO CIRCULAR ECONOMY

We become pioneers in sustainability.

Covestro consistently pursues its strategyFocus on long-term goals

We optimize our production network.

We strengthen our innovative capacity.

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Climate change

Disturbed ecosystems

Scarce resources forgrowing world population

Global challenges call for fundamental

rethink of approaches

The economy and society must take new approaches

Enabling sustainablevalue creation

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Sustainable restartConsumption, production and value creation need to change

July 30, 2020 │ Annual General Meeting

Circular economy as a concept for a truly sustainable world

Circular economy asa guiding principle

Key to climate neutrality and resource protection

Great business opportunities

Plastics are the key

Leave one-off use

Take waste as a resource

Recover carbon

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Global guiding principle

July 30, 2020 │ Annual General Meeting

Strong new visionFull focus on circularity

Establish circularity throughout the company

Become a shaping force for circular economy

Achieving greenhouse gas neutrality

Our new vision:

We will be fully circular

Specifies our purposeto make the world a

brighter place

19 July 30, 2020 │ Annual General Meeting

Long-term programFocusing on four main areas

Long-termstrategic program

Focus on four promising areas

Step-by-step implementation

Develop concrete goals and KPIs

Renewable energy

Joint solutions

Innovative recycling

Alternative raw materials

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Exceptional year 2020Outlook for the rest of the year

Establishing circular economy as a guiding principle

Economic environment remains uncertain due to Corona

Focus on efficiency, cost awareness and securing liquidity

Guidance for the full year confirmed

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Consistent crisis management and active measures show effect

July 30, 2020 │ Annual General Meeting

covestro.com

Thank you for your attention!

22 July 30, 2020 │ Annual General Meeting