covestro.com
Pushing boundaries within industry collaborationDr. Markus SteilemannMember of the Board of Management Chief Commercial Officer
Daniel MeyerHead of the Business UnitCoatings, Adhesives, Specialties
Innovation at Covestro
2
At the heart of our company
Innovation is built on a strong history of R&D
Innovation is more than R&D
Innovation is everyone and everywhere
Covestro: A start-up
with80 years of history
Strong history of R&D
3
80 years of ideas and inventions
1937Otto Bayer discoverspolyure-thanes
1953Hermann Schnelldiscoverspolycarbonates
1954Kuno Wagner invents crosslinking agents for lightfast polyurethane coatings
1962Polyurethane rigid foam launched as insulation for cooling devices
1967Bayer pre-sents the first carmade almost entirely from plastic
1982Special grade of Makrolon® used in optical storage media
1985First Bayblend®
flame retardant grades for business machines
1991Introduction of memory foam in mattress industry
1995Makrolon®
based films for highsecurity documents
2001Constructionstart atCovestrointegratedsite atShanghai, China
2011Shanghai TDI plant with new gas-phase technology
2012Introductionof microcell technology,with improved insulation efficiency
2015
2016
First head lampmade fromplastic
First bio-based hardener for
coatings: Desmodur®
eco N
First plant forCO2-basedpolyetherpolyolsin Dormagen
Innovation is more than R&D
4
New innovation model
ProductCustomer
Business model Function
Innovation
Example: Logistics• Consideration of extreme
weather conditions for deliveries to customers
Example: Fashion• Sustainable materials
and more for the globaltextile industry
Example: Energy• Management system for
optimal energyconsumption of plants
Example: Coating• New components from
renewable resources
Innovation is everyone & everywhereOpen innovation – internally and externally
5
Internal• Create a culture of innovation
throughout the company• Foster networking and collaboration
External• Embrace open innovation• Collaborate with entire value chains
and academia
A world leading company in polyurethane coating technologyCovestro conducts global and regional production, R&D activities and technical support
6
FilmsDeerfield
IsocyanatesBaytown
IsocyanatesSanta Clara
ElastomersCheadle Hulme
IsocyanatesLeverkusen
Isocyanates, Resins, FilmsDormagen
ElastomersRomans
FilmsBomlitz
Elastomers Tianjin
IsocyanatesNiihama
FilmsMap Ta Phut
Isocyanates, ResinsCaojing
IsocyanatesAnkleshwar
Isocyanates, ResinsEl Pratworld scale unit
Sustainability drives innovationClear objectives along the whole value chain
7
Ouroperations
Ourlogistics
Customeroperations
Use ofproduct
End-of-life
Our rawmaterials
PEOPLEPLANETPROFIT
Reduce impact from …
Reduce impact from …
Enable our partners
Reduce impact from …CO2CO2
Foster Life Cycle Thinking
Drive development of PPP product solutions (People, Planet, Profit)
Closing the carbon loopBy using biomass or CO2
8
Polymers ApplicationChemicalsFeedstocks
Biotechnology or Chemocatalysis
Covestro is committed to “eco”-products and expands portfolio
9
References prove: bio-based* solutions do matter to the industry
High performance enabled by nature
Desmodur® eco N
Bayhydur® eco
* Biomass source is starch from non-edible plants
Impranil® eco
A versatile eco solution for coatings: Desmodur® eco N
10
First aliphatic crosslinker with significant renewable content and high performance
• ~30 % reduction in carbon footprint
• 70 % bio-based raw material
• 100 % performance
First bio-based automotive 2K PU clearcoat tested
11
• Successful coating of Audi Q2 under near-series conditions
• Based on proven 2K PU technologyfulfilling high performance standards
• Application on existing coating linespossible
• Helps customers to lower carbonfootprint of their products
Audi: Successful near-series trial / BASF: Satisfied with performance
Success story: Desmodur® eco N 7300
First locomotive protected by bio-based railcar clear coating
12
• Sustainable coating as solution for railway transportation
• Excellent performance with lower carbonfootprint
• 70 % higher scratch resistance andgloss stability than standard system*
• High resistance against graffity removingagents
Lankwitzer Lackfabrik and Newag see added value for customers
* Amtec Kistler car wash simulation
Success story: Desmodur® eco N 7300
Bayhydur® eco for more sustainable furniture coating
13
First bio-based hardener for 2K waterborne coatings
• ~30 % reduction in carbon footprint
• 66 % bio-based content
• 100 % performance
Design furniture protected by 2K bio-based waterborne coating
14
Feasibility study: RiFRA regards Sirca coating as a step towards a more sustainable living
• Reduces use of fossil resources for wood coatings
• Protects furniture in demanding environments such as bathrooms and kitchens
• High hardness and chemical resistance
Success story: Bayhydur® eco 7190
A new dimension in sustainable textile coating: Impranil® eco
15
• Latest product family in INSQIN® range
• INSQIN® enables significantly improved carbon footprint and water saving in coated textiles lifecycle
• Impranil® eco contains up to 65 % renewable content
• Enables brand owners and coated textile manufacturers to meet their sustainability targets
Bio-based aqueous PU dispersions for synthetic coated fabric materials
16
Covestro generates value by enabling unique design at competitive cost
• Manufacturing of coated plastic components in only one production step instead ofconventional 5-step mold and coat process
• Up to 40 % cost reduction potentialand up to 75 % energy savings
• Close to 100 % solid coating system
• Covestro owns trial plant for coatingapplication and injection molding
• One stop shop with full material expertise
DirectCoating is pushing boundaries in design freedom
Buttons by touchTransparent
coating
Blackcoating
Blacksoft-feelcoating Ambient
lightingline
High-quality decorative car components from a single mold
17
• New attractive design possibilities such as range of colors, surface structures and haptic impressions will enhance car interiors
• High quality surfaces without reworking
• Low VOC coating technology – close to100 % solid
• Cost- and energy-efficient process
Success story with Votteler Lackfabrik shows: technology is breaking through – now!
Success story: DirectCoating
Efficient polyurea system for car refinishing clearcoat
18
• Outstanding appearance and superb performance easily achieved
• Increased productivity and reduced costs:Ready to handle and polish after 20instead of conventional 100 minutes, (oven baking or infrared)
• Flexibility with curing methods: Air drying at ambient temperaturespossible
Covestro and U-Pol enable body shops to combine high productivity with outstanding appearance
Success story: Desmophen® NH & Desmodur® N
Corrosion Protection• Less coating layers and faster curing
without compromising long-term performance
Flooring• Faster curing for faster return to
usage of building for asset owners
Efficient coating with PASQUICK®
19
Polyaspartics technology offers advantages along the value chain
• High performance corrosion protection:First application in public infrastructure at “Citadel Bridge” in Hamburg
• Saves costs thanks to one layer less –with same performance of standardcoatings
• Bridging the gap to faster corrosion protection: Cures 4 times fasterthan standard coating
High performance corrosion protection with higher productivity
20
Covestro, Dresdner Lackfabrik novatic and NE Sander Eisenbau reduce public spending
Success story: PASQUICK®
An upturn for wind turbines
21
Covestro and Hempel helped Alucrom to increase production
• Higher productivity: More wind turbinetowers coated per day through shorterdrying time
• 30 % less VOC emissions
• Highest quality standards maintained
Success story: PASQUICK®
A new start for an outdated parking garage
22
Covestro and USL StructureCare provide durability and aesthetics for one of the UK’s most successful shopping centres
• 18,000 square meters of park deckscoated
• PASQUICK® technology enabled fast return to service
• USL received British Parking Award 2016
Success story: PASQUICK®
• Highly aesthetic and durable floor coating
• Easy-to-clean properties
• Fast return to service
Refurbishment of technical center floor
23
Europe Resine and Krypton Chemical cooperated on quick refurbishment of Covestro lab
Success story: PASQUICK®
Pushing boundaries within industry collaboration
24
Hardeners have significant influence on coatings properties• Significant added value to the resulting
coatings – such as high flexibility, self-healing capabilities and exceptional adhesion
• More efficiency in coating processes along the value chain
• We offer solutions for waterborne, high solid and bio-based systems
We are partner of choice for polyurethane technology
Where we will push boundaries in the future
25
• We stay committed to aliphatic hardeners and to developing more sustainable products based on PU technology
• We are committed to the further development of bio-based solutions
• We will further drive the development of highly efficient coating processes such as direct coating and digital printing
• We are committed to close co-operation with our partners along the value chain
Forward-looking statements
This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG.
Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports, which are available on the Covestro website at www.covestro.com.
The company assumes no liability whatsoever to update these forward-looking statements or to adjust them to future events or developments.