Covestro on the Capital Market

Performance of the Covestro Stock Versus the Market in the First Half of 2019

€ (Covestro share)

Positive stock market performance in an unsettled environment

Although the macroeconomic environment worldwide is marked by uncertainty, European stock markets performed well in the first six months of 2019, thereby recovering from a weak year for stocks in 2018. Many indices such as the EURO STOXX 50^® posted positive performances in the first half of 2019. At the end of June, the DAX, which is relevant for Covestro, was up 17.4% compared with its value at year-end 2018, while the STOXX^® Europe 600 Chemicals Index rose 18.5% during the same period. However, individual chemical stocks continued to experience strong volatility and muted growth during this period, driven by uncertainties arising from trade conflicts and the slowing of global economic growth and industrial production.

In this capital market environment, Covestro stock finished the first half of 2019 at a Xetra^® closing price of €44.71 – an increase of 3.5% compared with the end of 2018. On May 31, 2019, Covestro stock dipped to its low for the half-year with a closing price of €39.23. The high for the first six months was €55.32 on April 12, 2019.

Dividend of €2.40 per share paid

At this year’s Annual Stockholders’ Meeting on April 12, 2019, which took place at the World Conference Center in Bonn (Germany), stockholders approved the dividend of €2.40 per share proposed by the Board of Management and the Supervisory Board of Covestro AG for 2018. Compared with the prior year (€2.20), this represents an increase of 9%. The dividend was paid on April 17, 2019.

New authorization to acquire treasury shares

At this year’s Annual Stockholders’ Meeting, stockholders approved the proposal by the Board of Management and the Supervisory Board of Covestro AG to authorize the Board of Management to acquire and use own shares in the amount of up to 10% of the capital stock. According to the German Stock Corporation Act, authorization such as this is required for deciding on possible additional share buy-backs in the future.

Moody’s confirms credit rating

At the end of the first half of 2019, rating agency Moody’s Investors Service, London (UK), reviewed Covestro’s existing investment-grade rating and confirmed the company’s rating on July 2, 2019. The Baa1 rating with a stable outlook puts Covestro in an excellent position for obtaining financing, particularly on the international debt market.

Buy recommendations from eight analysts

At the end of the first six months of 2019, Covestro was covered by 23 securities brokers. Eight analysts recommended the stock as a buy, twelve were neutral, and three rated it as a sell. The average share-price target at the end of the period was €51.