IR Investor Presentation

33 23 Status TDI process technology Proprietary gas-phase production technology sets industry standards in efficiency and sustainability How it works • • • Innovative gas-phase technology for TDI Significant economic improvements (a) Cost indexed to 100 -80% -60% -40% covestro TDA and phosgene heated Subsequently transferred in a gaseous form to th Condensed to a liquid and distilled to yield purified TDI with recovered solvent and phosgene First introduced in 2011A Shanghai facility first to implement gas-phase in full scale Applied in all Covestro facilities in regions with high energy costs (EMLA & APAC) from 2015E Solvent hold-up Energy consumption ■Conventional ■Gas-phase technology Phosgene hold-up Key benefits of gas-phase technology for TDI Major source of competitive advantage and cost leadership position in TDI ✓ Lower energy consumption vs. liquid phase technology Shorter reaction time vs. conventional processes with significantly higher throughput September 2016 | IR Investor Presentation Note: (a) Refers only to phosgenation step as per management estimates

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