Annual Report 2023


Covestro AG, the parent company of the Covestro Group, is headquartered in Leverkusen (Germany). It is listed on the stock exchange in Germany and is included in the DAX, Germany’s leading index. Covestro has two reportable segments, Performance Materials (PM) and Solutions & Specialties (S & S). While the Performance Materials segment forms one separate business entity, the Solutions & Specialties segment breaks down into six business entities. Covestro has set these business entities up according to their respective success factors. All business-related operations along the value chain are incorporated into these entities. Covestro has thus focused its businesses perfectly on the requirements of individual markets and aligned them with its customers’ needs.


Performance Materials

The Performance Materials segment forms a separate business entity comprising the development, production, and supply of high-performance materials such as polyurethanes and polycarbonates, as well as base chemicals. This includes diphenylmethane diisocyanate (MDI), toluene diisocyanate (TDI), long-chain polyols, and polycarbonate resins, among others. These materials are used in sectors such as the furniture and wood processing industry, the construction industry as well as the automotive and transportation industry, for example in roof structures, insulation for buildings and refrigerators, mattresses, and car seats, among other applications. The focus in the Performance Materials segment is on reliably delivering standard products at competitive cost.

Solutions & Specialties

The Solutions & Specialties segment combines Covestro’s solutions and specialties business; it has six business entities: Engineering Plastics; Coatings & Adhesives; Tailored Urethanes; Thermoplastic Polyurethanes; Specialty Films; and Elastomers. In this segment, Covestro combines sophisticated products with a high pace of innovation, complementing its offering with application technology services and customer-specific system solutions. A fast pace of innovation is a key success factor since customer requirements change quickly. Covestro’s Solutions & Specialties business comprises a variety of polymer products including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers. They are used in sectors such as the automotive and transportation industry; the electrical, electronics and household appliances industry; the construction industry; and the healthcare industry. These materials include composite resins for solar panel frames; precursors for coatings and adhesives; high-quality specialty films; or cases for laptops, floodlights, and electric vehicle batteries.

In addition, central corporate functions work toward the further long-term development of Covestro (Build), for instance permanently ensuring the Group’s competitiveness and supporting efficient corporate governance (Run).

Group structure

Group structure (graphic)

As of December 31, 2023, the Covestro Group comprised 57 consolidated companies in 21 countries in addition to Covestro AG, and employed 17,520 people*. Covestro AG, the parent company of the Covestro Group, is listed on the stock exchange. It directly and indirectly holds shares in the consolidated companies and also acts as a strategic management holding company.

* The number of permanent or temporary employees is stated in full-time equivalents (FTEs). Part-time employees are included on a pro-rated basis in line with their contractual working hours. The figures do not include employees in vocational training. Prior-year figures are shown in brackets.

The Board of Management of Covestro AG runs the company on its own responsibility with the goal of sustainably increasing the company’s enterprise value, and determines and pursues its corporate objectives. It also defines the company’s portfolio, allocates resources, and decides on both the financial and nonfinancial steering and reporting of the Covestro Group. Moreover, the Board of Management defines the long-term goals and strategy for the Group and sets forth the principles and policies for the resulting corporate policies.

Covestro’s Chief Executive Officer (CEO) is Dr. Markus Steilemann. His area of responsibility includes the corporate Strategy; Group Innovation & Sustainability; Corporate Audit; Human Resources; and Communications functions.

Covestro’s Chief Financial Officer (CFO) is Christian Baier. In October 2023, he succeeded Dr. Thomas Toepfer, who left the company as of August 31, 2023. Dr. Markus Steilemann, Chief Executive Officer of Covestro AG, acted in the role of CFO on an interim basis during September 2023. Christian Baier has been responsible for the areas of Accounting, Controlling, Finance & Insurance; Information Technology & Digitalization; Investor Relations; Law, Intellectual Property & Compliance; Portfolio Development; and Taxes since October 1, 2023. He is also responsible for country-specific topics in the United States and China.

Dr. Thorsten Dreier is the company’s Chief Technology Officer (CTO). He took over in this role on July 1, 2023 after the previous CTO, Dr. Klaus Schäfer, retired. Dr. Thorsten Dreier is responsible for the corporate Process Technology; Engineering; Group Procurement; and Group Health, Safety, and Environment functions and coordinates the rollout of, and compliance with, global processes and standards and the rollout of initiatives in Covestro’s production network. In addition, since September 1, 2023, he has held the position of Labor Director, which he took over from Dr. Thomas Toepfer. Sucheta Govil is Covestro’s Chief Commercial Officer (CCO). She is in charge of the seven business entities, including all business-related processes and areas of production, from procurement and application technology to sales. In addition, she is responsible for the three regional Supply Chain & Logistics units, which handle internal and external supply chains worldwide.

The Supervisory Board oversees and advises the Board of Management. The Supervisory Board has 12 members, half of whom are shareholder representatives and half employee representatives pursuant to the German Codetermination Act. Dr. Richard Pott is the Supervisory Board Chair and Petra Kronen is Vice Chair.

MDI/Diphenylmethane Diisocyanate
A chemical compound from the class of aromatic isocyanates, primarily used in polyurethane foams.
TDI/Toluylene Diisocyanate
A chemical compound from the class of aromatic isocyanates, primarily used in polyurethane foams and coating systems.

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