1.General Information

Covestro AG (registered at the district trade register, or Amtsgericht, for Cologne, number: HRB 85281) is a stock exchange-listed corporation headquartered at Kaiser-Wilhelm-Allee 60, 51373 Leverkusen, (Covestro AG). The consolidated financial statements of Covestro AG for the period ended December 31, 2019, cover Covestro AG and its subsidiaries, joint arrangements and associated companies. They have been prepared according to the (IFRSs) of the Board (), London (United Kingdom), as endorsed by the European Union (EU) and in effect at the reporting date, the Interpretations (IFRICs) of the IFRS Interpretations Committee (IFRS IC) and the Interpretations published by the Standing Interpretations Committee (SIC), as well as the additional requirements of German commercial law pursuant to Section 315e (1) of the (HGB) for the exempting IFRS consolidated financial statements. Reference information for the previous period has not been restated for new accounting standards, see note 2.1 “Financial reporting standards applied for the first time in the reporting period.”

The declaration pertaining to the pursuant to Section 161 of the (AktG) has been issued and made available to stockholders. It is reproduced in section “Declaration on Corporate Governance” of the combined management report.

If certain items in the income statement, statement of comprehensive income, statement of financial position, statement of cash flows and statement of changes in equity of the Covestro Group are condensed for the sake of clarity, this is explained in the notes. The income statement has been prepared using the cost-of-sales method. Assets and liabilities are classified by maturity. They are classified as current if they mature within one year or within the Group’s normal business cycle or are held for sale. Inventories, trade accounts receivable and payable and assets held for sale are consistently presented as current. Deferred tax assets, deferred tax liabilities and pension provisions are consistently presented as noncurrent.

The consolidated financial statements are drawn up in euros. Amounts are stated in millions of euros (€ million) except where otherwise indicated.

Exchange rates

In the reporting period, the following exchange rates were used for the major currencies of relevance from the perspective of the Covestro Group:

Closing rates for major currencies

 

 

 

 

 

 

 

 

 

 

 

Closing Rates

€1/

 

 

 

2018

 

2019

BRL

 

Brazil

 

4.44

 

4.52

CNY

 

China

 

7.87

 

7.82

HKD

 

Hong Kong

 

8.97

 

8.75

INR

 

India

 

79.73

 

80.19

JPY

 

Japan

 

125.85

 

121.94

MXN

 

Mexico

 

22.49

 

21.22

USD

 

United States

 

1.15

 

1.12

Average rates for major currencies

 

 

 

 

 

 

 

 

 

 

 

Average Rates

€1/

 

 

 

2018

 

2019

BRL

 

Brazil

 

4.29

 

4.41

CNY

 

China

 

7.81

 

7.74

HKD

 

Hong Kong

 

9.25

 

8.77

INR

 

India

 

80.64

 

78.82

JPY

 

Japan

 

130.40

 

122.01

MXN

 

Mexico

 

22.70

 

21.55

USD

 

United States

 

1.18

 

1.12

IFRSs/International Financial Reporting Standards
International accounting standards as endorsed by the European Union
IAS/Accounting Standards
International accounting standards as endorsed by the European Union
IASB/International Accounting Standards Board
The International Accounting Standards Board is an independent, private-sector body that develops and approves the International Financial Reporting Standards (IFRSs).
HGB/German Commercial Code
Comprises much of the German accounting legislation
DCGK/German Corporate Governance Code
A set of regulations compiled by the Government Commission on the German Corporate Governance Code in respect of responsible corporate governance, which contains recommendations and suggestions for the management and oversight of listed corporations in Germany
AktG/German Stock Corporation Act
Regulates the legal provisions pertaining to German stock corporations