Half-Year Financial Report 2023

4. Scope of Consolidation

4.1 Changes in the Scope of Consolidation

As of June 30, 2023, the scope of consolidation comprised Covestro AG and 59 (December 31, 2022: 60) consolidated companies.

The decline in the number of consolidated companies in the first half of 2023 is due to the sale of Covestro Resins (Taiwan) Ltd., Taipei (Taiwan, Greater China), which was successfully completed as of May 31, 2023.

4.2 Acquisitions and Divestitures

Acquisitions

No reportable acquisitions were made in the first half of 2023.

Divestitures

On April 3, 2023, the sale of assets and liabilities (disposal group) of the additive manufacturing business to Stratasys, a U.S.-Israeli manufacturer of 3D printers and 3D production systems, was successfully completed. The business sold by Covestro includes employees, research and development facilities, production units, and offices in the Netherlands, the United States, China, Japan, Germany, and the United Kingdom as well as access to a large network of partners around the world. The portfolio also includes products that are part of the Resins & Functional Materials business acquired from Koninklijke DSM N.V., Heerlen (Netherlands), in fiscal 2021. The additive manufacturing business, which was part of the Solutions & Specialties segment, offers material solutions for common polymer 3D printing processes. Covestro’s decision to sell the additive manufacturing business is consistent with the optimization of its portfolio to make its organization more efficient and allow the company to sharpen its focus on the extensive range of offerings for customers in its main customer industries. The preliminary selling price is €50 million. There is an additional purchase price receivable of €4 million. The agreement also specifies a variable earn-out payment, which depends on the achievement of various success factors. The transaction is structured as an asset deal. Noncurrent assets and inventories of €21 million as well as liabilities of €2 million were sold as part of this transaction. The net gain of €35 million on the disposal of this business was recognized in other operating result.