Chemicals

3rd Quarter 2015

• Considerable sales decline due mainly to lower prices
• Slight increase in earnings primarily attributable to higher margins in Petrochemicals division in Europe

Sales in the Chemicals segment were considerably below the level of the previous third quarter (volumes –2%, prices –16%, portfolio –2%, currencies 7%). This was essentially due to lower prices on account of decreased raw material costs, especially in the Petrochemicals division. Sales were further reduced by the disposal of our share in a joint operation in Singapore. These developments were partially countered by positive currency effects and volumes increases in the Intermediates and Monomers divisions. Income from operations before special items grew slightly, primarily as a result of higher margins in the Petrochemicals division.

Petrochemicals

Sales were considerably down in the Petrochemicals division as a result of declining prices in all product lines. This was largely an effect of significant drops in raw material prices, especially naphtha. Other factors weighing on sales were lower volumes of steam cracker products in North America, along with the disposal of our share in the Singapore-based Ellba Eastern Private Ltd. joint operation at the end of 2014. Currency developments were positive, however. Earnings considerably surpassed the level of the previous third quarter, especially because of significantly higher margins for steam cracker products in Europe.

Monomers

Compared with the third quarter of 2014, sales dipped slightly in the Monomers division. This was attributable to price declines resulting from lower raw material costs. Currency effects positively influenced sales. Volumes were slightly above the level of the previous third quarter. Higher sales volumes in the MDI and polyamide-6 extrusion polymers businesses more than compensated for the volumes decline in TDI. Earnings slipped considerably on account of higher fixed costs arising from the gradual startup of new production plants as well as lower margins for TDI.

Intermediates

In the Intermediates division, sales grew slightly year-on-year as a result of positive currency effects and higher volumes in nearly every business area. Sales prices declined. Earnings were slightly up compared with the third quarter of 2014, driven by higher volumes and improved margins, especially for amines.