Hubert FinkHead of Business Unit Semi-Crystalline ProductsDuesseldorf, September 16, 2010

Semi-Crystalline Products –A premium supplier of high-tech plastics

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SCP – Business overview Growth drivers

Investments

Outlook

Agenda

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Performance Butadiene Rubbers

Technical Rubber Products

Butyl Rubber

Semi-Crystalline Products

SCP – A premium supplier of high-tech plastics

Automotive Other industries

Performance Polymers Applications Semi-Crystalline Products

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SCP – Business overview

Products and brands

Sales: >€500 mEmployees: ~1,500Customers: ~600

Intermediates: Caprolactam, adipic acid, glass fibersHigh-tech plastics: Durethan® based on polyamide (PA);

Pocan® based on polybutylenterephthalate(PBT)

Global market position: amongst top 5 within a >€7 bn marketCompetitors: BASF (Plastics), DuPont (Performance

Materials), DSM (Polymer Intermediates, Performance Materials), Rhodia (Polyamide)

Facts

Products and brands

Markets and competition

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Product split by external sales Industry by application for SCP products

SCP is a premium supplier of high-tech plastics for a broad variety of customer industries

Inter-mediates

High-tech plastics Automotive

E&E

Sport/leisureConstruction

OthersPackaging

Total SCP High-tech plastics

100%

50%

0%

Textile

Chemistry

Automotive

E&E

ConstructionSport/leisurePackaging

Others

Broad diversity of industries served by SCP Main industries of high-tech plastics are automotive (>50%) and electro/electronics (>20%)

Two-thirds of intermediates output consumed captivelyInnovations drive growth of high-tech plastics

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Raw materials sourced externally

on the global market

SCP – Leading position in polyamide value chain

Raw materials

Sulphur

Ammonia

Cyclohexane

SCP benefits from consistent upstream-integration

Caprolactam

Monomer for polymerization of Polyamide 6 within the SCP value chainCaptive production of KA-Oil, cyclohexanoneand hydramin

Strategic intermediate for glass fiber rein-forced compounds and organic plastic sheets

Glass Fibers

Monomer for Polyamide 6.6 and polyesters

Adipic Acid

Raw materials SCP intermediates SCP high-tech plastics

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SCP with cost leadership in its key intermediate Caprolactam

World scale Caprolactam capacity ~200kt in Antwerp, BEStrong logistic position with direct access for deep sea barges Lean organizationOngoing programs for further cost and capacity improvementsDebottlenecking investment to ~220kt of €35 m on track and fully completed by 2011

Cost leadership in Caprolactam

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Supply security of strategic intermediates

for Durethan® and Pocan®

SCP – Success of high-tech plastics based on market proximity, innovation and customer service

SCP intermediates SCP high-tech plastics

Manufacturing sites with global reach Knowledge leader in compounding of high-tech plastics

Polymerization: GermanyCompounding: Germany, China, India (2012)

Production

Global coverageStrong branding Customer value orientation

MarketingR&D

Worldwide product and application de-velopment centersCustomer proximityCustomized de-velopment activities

Germany China Hong Kong USA

India BrazilAdipic Acid

Glass Fibers

Caprolactam

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SCP high-tech plastics well positioned within price andperformance driven markets

Continuous Product and Application Development (PAD) leads to premium positioning for LANXESS high-tech plastics with outstanding performance and premium price- Excellent combination of

performance, price and customer value throughout the whole portfolio

- Customized products and applications shield SCP business from competitive threats

- Entry also into niches like heat and hydrolysis resistant plastic segments

Amorphous

POM

PUR

PEPP

PPSPPA

ABS

PC

SCP portfolio

Commodityplastics

High-tech plastics

Semi-Crystalline

PBT

High-tech plastics within SCP portfolio

PA

……

……

Pric

e &

Perfo

rman

ce

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SCP – Business overview

Growth drivers Investments

Outlook

Agenda

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SCP – Global megatrends as main growth drivers

Globalization pushes trade worldwideRapid growth rates for mobility related products in emerging markets Individualization drives consumer demand

Megatrend mobilityMobility Agro

Urbanization Water

LANXESS capitalizing on global megatrends Performance Polymers

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Growing car production and trend of weight reduction increase demand for high-tech plastics

High-tech plastics in automotives Demand growth for high-tech plastics*

Car production Usage

* Source: JD Powers 08/2010, LXS own estimates

LANXESS is the preferred development partner for new applications in structural components

Global car production growth of ~3.3% p.a. and increased usage of high-tech plastics per car drive

growth of 7% p.a.*

2010e 2020e

+7% p.a.

~14kg/car

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LANXESS preferred provider of material and technology of choice for the automotive industry

Hybrid technology with polyamide composite insert out of polyamide (PA) and endless glass fibers

Durethan® BKV60 H2.0 EFHeat stabilized, easy flowCost and weight reduction against thermoset designGlued into the body in white Contributes to stiffness and safety

Material of choice:Spare wheel recess (9kg)

Technology of choice:Polyamide composite insert (organo sheet)

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Strength in design of structural components makes SCP a premium development partner to the automotive industry

PA composite insertsNew generation of hybrid technology

Hybrid technology with combination of injection molded Durethan® and polyamide composite inserts- Low weight: weight reduction >10% over aluminum- Higher stiffness- Better impact performance- Possibility of complex designs - No corrosion and easier recycling Application leader: e.g. hoses and tubes for turbo charged engines, body components, oil pans, weight reduction of highest importance for e-mobilityMaterial leader: e.g. flame-retardant products in electrical engines, ECO grades for sustainable material solution

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Polyamide Composite Inserts provide higher dimensional stability combined with lower weight

Stre

ngth

[N]

Deformation [mm]0 10 20 30

9,000

8,000

6,000

5,000

4,000

3,000

2,000

1,000

7,000

Hybrid steel sheet 0,7mm and Durethan BKV30; weight 400g

Hybrid PA composite sheet inlay 2mm Tepex Dynalite and Durethan BKV30; weight 346g

PA Composite Inserts deformationPolyamide (PA) Composite Inserts testing

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Electro / electronics industry of increasing importance for high-tech plastics

SCP application electro / electronics industry Electro / electronic market growth

SCP is amongst the market leaders developing halogen-free flame-retardant high-tech plasticsOngoing trend of metal replacement Replacement of thermoset materials in the electrical industry to gain cost and integration potentials

2010e 2020e

Source: Global Insight 2010

Meat mincer (Braun AG), Durethan BKV60 H2.0 EF

Milk foamer (Nespresso), Pocan DP7244

01,000

3,000

5,000

7,000Output, € bn (real)

+6% p.a.

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LANXESS high-tech plastics to outperform market growth

LANXESS estimates based on PCI, SRI, TopRight

Focus on megatrend mobilityLANXESS as driver for increased use of high-tech plastics in new automotive generations (e.g. e-mobility, turbo charged engines)Leader in innovation of products and applicationsFirst mover in polyamide composite inserts with promising business opportunitiesInvestments in BRIC countries

Relevant market growth expected >6% p.a. SCP expects to outperform the market

2010e Mid-term Long-term

EMEA

Americas

APAC

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SCP – Business overview

Growth drivers

Investments Outlook

Agenda

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SCP high-tech plastics – Strong set up to serve the global demand

SCP high-tech plastics sitesProduction sites high-tech plastics- Krefeld-Uerdingen, Germany- Hamm-Uentrop, Germany

(JV DuBay Polymer GmbH)- Wuxi, China- Jhagadia*, India

Product and application development center- Dormagen, Germany- Hong Kong- Wuxi, China- Pittsburgh, USA- São Paulo, Brazil

Krefeld-Uerdingen, GEHamm-Uentrop, GE

Jhagadia, IN*

Wuxi, CN

Hong Kong

Pittsburgh, US

Dormagen, GE

Sao Paulo, BR

* Production starts 2012

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Track record of sustainable organic growth at Wuxi site

China: SCP high-tech plastics production

China, Wuxi2005 Start up of SCP manufacturing

China with annual capacity 20kt2007 Expansion to annual capacity 40kt 2011 Expansion to annual capacity 60kt

on track

2007 Start up of research and development testing center

SCP high-tech plastics site and PAD center

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Investment for new high-tech plastics site in India is on track

India: SCP high-tech plastics production

Jhagadia (state Gujarat)- Leading chemical region in India- Proximity to automotive industry- Connections to overseas ports- Access to highly trained workers

New plant for Durethan® and Pocan®

- Construction on the same pattern as Wuxi- Construction works start in 2010 - Production start-up: 2012- Initial capacity: 20 kt p.a.- Investment: >€10 m

SCP high-tech plastics site

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SCP – Business overview

Growth drivers

Investments

Outlook

Agenda

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SCP – A premium supplier of high-tech plastics

Growth perspectives

Markets

Products / technology

Megatrend mobility and rising middle class drive demand for high-tech plastics Investments in emerging countries further establish global market positionCustomer proximity strengthens SCP growth

Application areas for LANXESS high-tech plastics will further increase SCP know-how leadership strengthens existing customer relations and provides access to further premium customers worldwide

Long-term competitive advantage based on upstream-integration into strategic intermediates with cost leadership in CaprolactamExcellence in R&D and cutting edge product properties for high-tech plastics’ components ensure premium and “first mover” market approachFirst mover in the market for Polyamide Composite Inserts

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Safe harbour statement

This presentation contains certain forward-looking statements, including assumptions, opinions and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of the company to differ materially from the estimations expressed or implied herein. The company does not guarantee that the assumptions underlying such forward looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments.No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the company or any of its parent or subsidiary undertakings or any of such person’s officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

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Standard design New construction

Complete new construction of a front end with Durethan BKV 60 EF leads to weight and cost reduction

Relative weight

62%

100%