Segment and Quarterly Overview - Half-Year Financial Report 2023

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Segment information 2nd quarter

Performance Materials

Solutions & Specialties

Others/Consolidation

Covestro Group

2nd quarter 2022

2nd quarter 2023

2nd quarter 2022

2nd quarter 2023

2nd quarter 2022

2nd quarter 2023

2nd quarter 2022

2nd quarter 2023

€ million

Sales (external)

2,461

1,789

2,165

1,872

77

59

4,703

3,720

Intersegment sales¹

753

557

8

7

–761

–564

–

Sales (total)

3,214

2,346

2,173

1,879

–684

–505

4,703

3,720

Change in sales

Volume

1.6 %

–10.3 %

–7.3 %

–4.7 %

–

–2.1 %

–8.0 %

Price

17.5 %

–15.3 %

11.8 %

–6.6 %

–

14.5 %

–11.0 %

Currency

6.7 %

–1.7 %

6.5 %

–2.2 %

–

6.5 %

–1.9 %

Portfolio

0.0 %

–

0.0 %

Sales by region

EMLA

1,255

813

851

736

61

48

2,167

1,597

NA

625

476

563

487

12

8

1,200

971

APAC

581

500

751

649

4

3

1,336

1,152

EBITDA²

367

302

213

221

–33

–138

547

385

EBIT²

204

158

139

149

–36

–141

307

166

Depreciation, amortization, impairment losses and impairment loss reversals

163

144

74

72

3

240

219

Cash flows from operating activities³

95

26

–83

205

–284

–82

–272

149

Cash outflows for additions to property, plant, equipment and intangible assets

132

103

56

55

2

1

190

159

Free operating cash flow³

–37

–77

–139

150

–286

–83

–462

–10

Trade working capital⁴

1,831

1,428

2,010

1,701

–5

–24

3,836

3,105

¹	In line with the internal reporting to the Board of Management since July 1, 2022, the figures also include sales generated in the amount of the cost of sales. To ensure comparability, the segment data is presented on a consistent basis.
²	EBITDA and EBIT include the effect of intersegment sales on earnings.
³	An imputed tax rate of 25% has been used since the Annual Report 2022 to calculate income taxes paid by the reportable segments; see note 4 “Segment and Regional Reporting” in the Notes to the Consolidated Financial Statements in the Annual Report 2022. The tax rate for the reference value has not changed.
⁴	Trade working capital includes inventories plus trade accounts receivable and contract assets, less trade accounts payable, contract liabilities, and refund liabilities as of June 30, 2022/2023.

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Segment information 1st half

Performance Materials

Solutions & Specialties

Others/Consolidation

Covestro Group

1st half 2022

1st half 2023

1st half 2022

1st half 2023

1st half 2022

1st half 2023

1st half 2022

1st half 2023

€ million

Sales (external)

4,849

3,581

4,387

3,755

150

127

9,386

7,463

Intersegment sales¹

1,563

1,164

17

15

–1,580

–1,179

–

Sales (total)

6,412

4,745

4,404

3,770

–1,430

–1,052

9,386

7,463

Change in sales

Volume

3.5 %

–14.4 %

–4.4 %

–10.1 %

–

0.5 %

–12.5 %

Price

21.7 %

–11.2 %

15.2 %

–3.5 %

–

18.3 %

–7.4 %

Currency

6.0 %

–0.5 %

6.3 %

–0.8 %

–

6.1 %

–0.6 %

Portfolio

0.0 %

9.0 %

0.0 %

–

4.3 %

0.0 %

Sales by region

EMLA

2,397

1,652

1,724

1,491

120

104

4,241

3,247

NA

1,229

965

1,064

972

23

16

2,316

1,953

APAC

1,223

964

1,599

1,292

7

2,829

2,263

EBITDA²

987

475

437

386

–71

–190

1,353

671

EBIT²

679

187

291

212

–74

–194

896

205

Depreciation, amortization, impairment losses and impairment loss reversals

308

288

146

174

3

4

457

466

Cash flows from operating activities³

301

45

–184

200

–232

–115

130

Cash outflows for additions to property, plant, equipment and intangible assets

226

179

101

98

3

2

330

279

Free operating cash flow³

75

–134

–285

102

–235

–117

–445

–149

Trade working capital⁴

1,831

1,428

2,010

1,701

–5

–24

3,836

3,105

¹	In line with the internal reporting to the Board of Management since July 1, 2022, the figures also include sales generated in the amount of the cost of sales. To ensure comparability, the segment data is presented on a consistent basis.
²	EBITDA and EBIT include the effect of intersegment sales on earnings.
³	An imputed tax rate of 25% has been used since the Annual Report 2022 to calculate income taxes paid by the reportable segments; see note 4 “Segment and Regional Reporting” in the Notes to the Consolidated Financial Statements in the Annual Report 2022. The tax rate for the reference value has not changed.
⁴	Trade working capital includes inventories plus trade accounts receivable and contract assets, less trade accounts payable, contract liabilities, and refund liabilities as of June 30, 2022/2023.

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Quarterly overview

1st quarter 2022

2nd quarter 2022

3rd quarter 2022

4th quarter 2022

1st quarter 2023

2nd quarter 2023

€ million

Sales (external)

4,683

4,703

4,618

3,964

3,743

3,720

Performance Materials

2,388

2,461

2,330

1,916

1,792

1,789

Solutions & Specialties

2,222

2,165

2,196

1,975

1,883

1,872

EBITDA

806

547

302

(38)

286

385

Performance Materials¹

620

367

53

(89)

173

302

Solutions & Specialties¹

224

213

280

108

165

221

EBIT

589

307

66

(695)

39

166

Performance Materials¹

475

204

(107)

(600)

29

158

Solutions & Specialties¹

152

139

207

(37)

63

149

Financial result

(28)

(44)

(40)

(25)

(29)

(36)

Income before income taxes

561

263

26

(720)

10

130

Income after income taxes

417

198

11

(907)

(27)

45

Net income

416

199

12

(899)

(26)

46

Cash flows from operating activities²

157

(272)

246

839

(19)

149

Cash outflows for additions to property, plant, equipment and intangible assets

140

190

213

289

120

159

Free operating cash flow²

17

(462)

33

550

(139)

(10)

¹	The earnings of the Performance Materials and Solutions & Specialties reportable segments include the effect of intersegment sales on earnings.
²	An imputed tax rate of 25% has been used since the Annual Report 2022 to calculate income taxes paid by the reportable segments; see note 4 “Segment and Regional Reporting” in the Notes to the Consolidated Financial Statements in the Annual Report 2022. The tax rate for the reference value has not changed.