Cosco has achieved its goals in a still-tough market environment.

·core business sales growth
2.0%
.group's total sales
12
4 billion euros (
-15.1%
)
.. EBITDA
in line with expectations, reaching approximately 6 billion euros (
-49.9.to launch strategic projects to promote circular economic development
.to pay a dividend of
.40 euros
.
.2020
: The full-yearremains critical Despite the market challenges, Cosco has achieved its FY2019 target. Core business sales increased 2.0% year-over-year. Group sales fell 15.1 per cent to about 12.4 billion euros as competitive pressures intensified between the sectors and sales prices remained low,

. As a result, earnings before interest, tax, depreciation and amortization (EBITDA) fell 49.9 per cent year-on-year to approximately EUR 1.6 billion, in line with expectations. Net profit fell 69.7 per cent to 552 million euros and free operating cash flow fell 71.7 per cent to 473 million euros. On that basis, Cosco plans to pay a dividend of 2.40 euros per share, the same as the previous year." 2019 has seen a number of geopolitical and macroeconomic uncertainties, although the market demand for our materials has not changed. This confirms our view that plastics will be more valuable in the future than ever before. "The CEO, Dr. Xervon, "2020 will still be challenging for us," says Markus Steilemann. However, we also see a long-term demand for high-tech plastics that can help further sustainable development in a variety of key technology areas. As a result, our business is moving towards a circular economy. Coscolaunched a global strategic project in FY19 to implement circular economic development across all sectors. For example, the company is actively promoting the use of alternative raw materials, developing innovative recycling technologies, and building broad partnerships and new business models.Efficiency Ensures Resilience
"Despite continued price pressures and lower-than-expected operating results for fiscal 2019, Cosco's financial fundamentals remain solid and we continue to achieve our goals in this environment." "The Chief Financial Officer, Dr. Dr. Thomas Toepfer said, "In today's market environment, we can only maintain the financial flexibility and success we need by operating more efficiently, prioriting projects, and constantly reviewing our investments." Withthe outlook for 2020 remains challenging, Cosco is accelerating the implementation of a long-term project aimed at improving effectiveness and efficiency. Launched in October 2018, the project has helped the company cut costs by about 150 million euros in the last fiscal year. In 2020, the company aims to save 250 million euros through the project, and by the end of 2021, it is expected to achieve a cumulative savings of about 350 million euros for the full year. In addition, the company has taken short-term measures, such as more efficient cost management and a re-examination of all existing and planned investments. Therefore, in addition to increasing the company's business impact, the focus in 2020 will remain on efficiency improvements.West explore the commercial potential of product innovation
at the K 2019 International Plastics Show in Dusseldorf, Germany, last fall, Covestro showcased a wide range of product innovations that address global challenges such as urbanization, future travel and climate change. As an innovation leader, Cosco and its materials keep pace with the times. Over the next few years, the company will focus on realizing the full commercial potential of these innovations. Suchta Govil, who will take up his duties as cosmos board member and chief commercial officer in the summer of 2019, will focus on boosting Cosmos' sales capabilities. Her goal is to continue to strengthen the customer-centric concept, optimize and advance the digitization of marketing strategies, and more efficiently explore attractive market opportunities.ongoing review of investment projects: Focus on long-term success
In 2019, Cosco's total investment amounted to 910 million euros (707 million euros in 2018), the highest in the company's history. In investment project management, the company has always focused on efficiency and optimal use of capital. Cosco announced in January 2020 that it would suspend its MDI investments in Baytown, USA, for 18 to 24 months, as market conditions remained tough., Cosco is confident that MDI's long-term growth prospects are bright. Cosco's new MDI production facility in Blomsbitter, Germany, is scheduled to start production in the first quarter of 2020, doubling its production capacity to 400,000 tonnes per year. The Blomsbyt site will also be one of the three major MDI production sites in Europe, cementing Cosco's leadership position in the market.2020
: Market conditions remain tough
Cosco expects low single-digit percentage growth in core business sales in fiscal 2020. At the same time, the Group expects free operating cash flow to remain between EUR 0-400 million and the return on capital taken up will be between 2% and 7%. The company expects full-year EBITDA to be between 1 billion and 1.5 billion euros, and in the first quarter EBITDA is expected to be between 200 million and 280 million euros.has not been able to fully estimate the financial impact of the new coronavirus on FY2020. sales growth in the polyurethane and polycarbonate segments
benefited from increased demand in the furniture, construction and electrical, electronic and home appliance sectors, with sales in the core business segment of the polyurethane segment up 2.3% year-on-year. Growth from these sectors was enough to offset weak demand in other sectors, such as cars. Sales in the sector fell 21.5 per cent to 5,779 million euros as competition intensified and average sales prices fell. Despite the decline in raw material prices, lower sales prices have severely affected profit margins. As a result, EBITDA for the sector fell 63.2 percent to 648 million euros. 2019, sales of the core business segment of the polycarbonate segment increased by 2.7% year-on-year, primarily due to strong demand in the electrical, electronics and home appliances and construction industries. The sector's sales price levels also declined year-on-year due to increased competition in the market, resulting in a 14.3 per cent decrease in sales to EUR 3,473 million and a 48.3 per cent decrease in EBITDA to EUR 536 million. In addition, the sale of the U.S. sheet business in the third quarter of 2018 had a negative impact of 2.2% on sales in fiscal 2019. sales in the coatings, adhesives and specialty chemicals segment decreased by 1.0% year-on-year in FY19, mainly due to weak demand for coating front-end raw materials in the automotive industry. Sales in this segment reached EUR 2,369 million, essentially the same as in 2018 (EUR 2,361 million). EBITDA rose 1.1 percent to 469 million euros. Lower margins due to lower sales prices, coupled with lower sales volumes, have had a negative impact on profits in the sector, however, currency changes and Covestro's increased stake in Japan's DIC Covestro Polymer Ltd. have had a positive impact on its profits. the fourth quarter of
2019, the Group's core business sales grew by 3.8%
the fourth quarter of 2019. Group sales were down 12.5 per cent year-on-year, mainly due to lower sales prices due to increased competitive pressures between business segments. In the fourth quarter, group EBITDA fell 5.1 per cent to 278 million euros and net profit fell 53.2 per cent to 37 million euros. Free operating cash flow fell 9.1 percent year-on-year to 330 million euros. : Cosco
is one of the world's largest polymer producers, with sales of 12.4 billion euros in 2019. Its business focuses on the production and manufacture of high-tech polymer materials and the development of innovative solutions for many areas of everyday life. The main service areas include the automotive, construction, wood processing and furniture, electrical and electronics industries, while other areas include sports and leisure, cosmetics, medical and chemical industries themselves. By the end of 2019, Cosco has 30 production sites and approximately 17,200 employees worldwide (based on full-time employees).
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