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Significant opportunities and risks

A description of the LANXESS Group’s opportunities and risks is provided in the combined management report of LANXESS AG and the LANXESS Group for the 2012 fiscal year, which appears in the Annual Report 2012. The following changes have occurred compared with December 31, 2012: In our Performance Polymers segment, the synthetic rubber business faces increasing competition, partly from the market entry of new manufacturers, which is resulting in some overcapacities. LANXESS is pursuing a product-specific strategy in these areas based on factors such as product and process differentiation and global positioning. In addition, LANXESS has launched the “Advance” program, a Group-wide program aimed at increasing efficiency and reducing costs. Based on an overall evaluation of risk management information, the Board of Management at the present time cannot identify any sufficiently likely risks or risk combinations that would jeopardize the continued existence of LANXESS.