LANXESS Aktiengesellschaft / Key word(s): Strategic Company Decision/Restructure of Company 17.09.2013 21:25 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- LANXESS increases competitiveness Cologne - LANXESS is countering the challenging business environment with a comprehensive efficiency program. Currently, it is foremost the synthetic rubber activities that are experiencing a temporary weakness in demand, increased competition in the market and volatile raw materials prices. As part of the 'Advance' program, the company therefore plans to reduce costs and headcount, as well as optimize its portfolio. LANXESS confirmed the company's full-year guidance for 2013 of EUR 700-800 million EBITDA pre exceptionals, excluding potential inventory devaluations. As part of the 'Advance' program, LANXESS is aiming to achieve about EUR 100 million in annual savings from 2015 onward through efficiency improvements and targeted restructuring. This will lead to a headcount reduction of about 1,000 employees worldwide by the end of 2015. The positions will be phased out through a voluntary separation program, which includes early retirement packages and severance pay. In addition, the variable compensation for the current business year will be reduced for those who are eligible. This includes the Board of Management. All measures are being coordinated with employee representatives. Restructuring has already been implemented within the Rubber Chemicals business unit, which is closing a site in South Africa and downsizing its operations in Belgium. In addition, we will adjust our business operations globally to reflect the current market situation. LANXESS will also continue with its proven flexible asset management strategy. In total, some EUR 150 million in one-off charges will be booked in 2013 and 2014 to cover the 'Advance' program. LANXESS will maintain its current structure of 14 business units under its three established segments. At the same time, the company will explore strategic options for specific non-core businesses. These non-core activities have combined sales of roughly EUR 500 million, close to EUR 30 million in EBITDA pre exceptionals, and a headcount of roughly 1,000. As part of its portfolio management activities over the mid- to long term, LANXESS is predominantly targeting acquisitions that will strengthen its Advanced Intermediates and Performance Chemicals segments and thus further diversify the Group's structure. LANXESS will continue to give priority to organic growth. Capital expenditures have been reduced to roughly EUR 600 million this year, while at the same time key strategic projects have been implemented. This will also bring LANXESS closer to the mid-term earnings goal of EUR 1.8 billion EBITDA pre exceptionals in 2018. Cologne, September 17, 2013 Forward-Looking Statements. This news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. 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. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. 17.09.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: LANXESS Aktiengesellschaft Kennedyplatz 1 50569 Köln Germany Phone: +49 (0)221 8885-0 Fax: +49 (0)221 8885-4944 E-mail: [email protected] Internet: www.lanxess.com ISIN: DE0005470405 WKN: 547040 Indices: DAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart; Terminbörse EUREX End of Announcement DGAP News-Service ---------------------------------------------------------------------------