Intense competition, increased costs and formation of provisions have resulted in the following adjustments to our guidance for 2018:

• A low-single-digit percentage increase in the core volume growth is expected for 2018. In the previous guidance, core volume growth was expected to finish the year with a low- to mid-single-digit percentage increase. In the fourth quarter, a slight core volume growth is expected despite the burden from the low water levels of the Rhine River.
• EBITDA is expected to finish the year slightly below the level of 2017 (EUR 3.44 billion in 2017). The previous guidance projected an EBITDA above last year's level. This adjustment is primarily due to (1) stronger-than-expected competition, (2) the low water level of the Rhine River, which has resulted in production losses and higher logistics costs, and therefore lower earnings, and (3) provisions for the "Perspective" efficiency program.
• Free operating cash flow (FOCF) is expected to finish the current year slightly below the previous year's level (EUR 1.84 billion in 2017). The previous forecast projected FOCF of more than EUR 2 billion. The adjustments to the guidance are the result of EBITDA levels below previous expectations, higher-than-expected funds tied up in working capital and higher investments.
• For FY 2018, return on capital employed (ROCE) is expected to be slightly below the level of the previous year (33.4% in 2017). We previously projected that ROCE would be around previous year's level.

Forward-looking statements
This ad-hoc statement 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 at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.



Contact:
Ronald Köhler
Head of Investor Relations
Phone: +49 214 6009 5098
E-mail: ronald.koehler@covestro.com

Ilia Kürten
Phone: +49 214 6009 7429
E-mail: ilia.kuerten@covestro.com

Cedric Schupp
Phone: +49 214 6009 2336
E-mail: cedric.schupp@covestro.com