Covestro launches new group structure to lay the foundation for sustainable growth

● Guiding Principle: Achieving a full cycle

● Reach new strategy implementation milestones

● Business reorganization into seven business divisions

● In the future, the report will be based on two business segments

● Focus on "customer-centric" and "sustainable development"

Covestro's new organizational structure, effective July 1, 2021, has successfully reorganized its three previous business segments - polyurethanes, polycarbonates, coatings, adhesives and specialty chemicals - into tailor-made of seven business units, thus reaching the first milestone in the implementation of its new "Sustainable Future" strategy
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Covestro launched its “Sustainable Future” strategy in February 2021, with its corporate vision to fully embrace the circular economy as its guiding principle
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Dr.
Markus Steilemann, CEO of Covestro, said: "We attach great importance to sustainable development and are systematically promoting the realization of a circular economy
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We are thus well prepared for Covestro's future growth
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Today, our new structure lays the foundation for further implementation of our strategy and sustainable growth
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We will become a better partner for our customers, thereby further enhancing our competitiveness
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Guided by customer needs and market requirements

According to the first part of the strategy - "Covestro for excellence" - the Group's divisions will pay more attention to the requirements of each market in order to meet customer needs to a greater extent
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In the new structure, Covestro has established seven business units based on the success factors of each business, while integrating all key operational activities across the value chain into each business unit
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The group is now divided into two segments: "Solutions and Specialty Chemicals" and "Functional Materials"
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· Solutions and Specialty Chemicals : This segment includes six divisions: Customized Polyurethane, Thermoplastic Polyurethane, Coatings and Adhesives, Elastomers, Engineering Plastics, and Special Films
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This sector will focus on complex products that require rapid innovation, and Covestro will also provide corresponding application technology services
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· Functional Materials: This business unit will be a separate segment, including standard polycarbonate, standard polyurethane raw materials and basic chemicals
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Its focus is to reliably deliver standard products at market-competitive prices
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For the first time, Covestro's Q3 2021 earnings report will be based on the two segments "Solutions and Specialty Chemicals" and "Functional Materials"
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Third-quarter earnings are scheduled for release on November 8, 2021
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Aggregate sustainable growth

According to the second part of the strategy - "Driving sustainable growth" - Covestro will continuously adapt its products and processes to the needs of its customers, focusing more on sustainable development in a profitable manner
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Dr.
Thomas Toepfer, Chief Financial Officer of Covestro, said: "We want to achieve sustainable growth
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This also means that we will constantly adjust our investments and acquisitions based on both profitability and sustainability
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The optimal allocation of resources and the new structure allow us to invest in those attractive and sustainable market segments and develop the product portfolio in a more targeted manner
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This will also provide a clearer direction for the growth of the group
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Covestro's long-term vision will be realized in the third strategic part, "Achieving the full circle"
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As part of this, the group plans to accelerate the transition to a climate-neutral and resource-efficient economy
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