DGAP-Adhoc

Covestro AG: Raised earnings outlook for 2021

DGAP-Ad-hoc: Covestro AG / Key word(s): Change in Forecast/Preliminary Results Covestro AG: Raised earnings outlook for 2021 13-Apr-2021 / 19:36 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Covestro is raising its forecast for EBITDA, free operating cash flow (FOCF) and return on capital employed (ROCE) for fiscal year 2021 as a result of a better than previously expected business development. The new expectation exceeds the previously provided forecast as well as current capital market expectations.

Capital market expectations are based on the average values of the latest consensus estimates of financial analysts, published by Vara Research on April 12, 2021.

Covestro adjusts its forecast for fiscal year 2021 as follows:

• EBITDA is expected to be between EUR 2,200 million and EUR 2,700 million. The previous forecast projected EBITDA between EUR 1,700 million and EUR 2,200 million. The adjustment of the forecast mainly results from a better than expected margin development in the first half of the year. The consensus expects this figure to be EUR 2,206 million.
   
• Core volume growth is expected - unchanged - to be between 10% and 15%, of which around 6 percentage points are attributable to the acquisition of the Resins & Functional Materials (RFM) business.

• Free operating cash flow (FOCF) is expected to be between EUR 1,300 million and EUR 1,800 million. The previous forecast projected FOCF between EUR 900 million and EUR 1,400 million. The adjustment of the forecast mainly results from the increased forecast for EBITDA. The consensus expects this figure to be EUR 1,037 million.
   
• Return on capital employed (ROCE) is expected to be between 12% and 17%. The previous forecast projected ROCE between 7% and 12%. The adjustment of the forecast mainly results from the increased forecast for EBITDA.

The increased EBITDA forecast is based on a preliminary EBITDA for Q1 2021 of EUR 743 million and an expected EBITDA for Q2 2021 between EUR 730 million and EUR 870 million.