Here you can rewatch the 2025 virtual Annual General Meeting from Thursday, April 17, 2025. 

Speeches:

You can download the speech of CEO Dr. Markus Steilemann, CFO Christian Baier and Chairman of the Supervisory Board Dr. Richard Pott here.

Photos:

Further documents for the Annual General Meeting 2025:

Further documents for the Annual General Meeting, the agenda as well as the voting results can be found here.

Annual Report 2024:

The results of our fiscal year 2024, snackable stories behind the numbers and further information about ����AV can be found

����AV at a Glance:

Are you looking for more information? Here you could find further facts about ����AV.

Here you can rewatch the 2024 virtual Annual General Meeting from April 17, 2024. 

Speeches:

You can download the speech of CEO Dr. Markus Steilemann, CFO Christian Baier and Chairman of the Supervisory Board Dr. Richard Pott here.

Photos:

Further documents for the Annual General Meeting 2024:

Further documents for the Annual General Meeting, the agenda as well as the voting results can be found here.

Annual Report 2023:

The results of our fiscal year 2023, snackable stories behind the numbers and further information about ����AV can be found .

����AV at a Glance:

Are you looking for more information? Here you could find further facts about ����AV.

At the start of the event, ����AV CEO Dr. Markus Steilemann put the year and its challenges into perspective: “2022 was a year of polycrisis and posed many challenges for ����AV. Russia’s war of aggression on Ukraine, the rise in energy costs, the downturn in the global economy, and inflation also impacted on our results of operations. We took systematic action, however, and were able to reduce our energy demand, save costs, and make long-term efficiency improvements. We systematically implemented our strategy and continued to drive our vision of becoming fully circular to enable sustainable growth with our products.”

The complete focus on the circular economy was reinforced with the “Sustainable Future” strategy introduced in the year 2021. Growing demand for sustainable solutions and products and the increasing link between profitability and sustainability are ensuring a stable strategic foundation. There is a clear focus on sustainable high-growth markets and innovative products.

For example, ����AV offers different products for the wind energy market. Polyurethane infusion resins, for instance, allow the manufacture of increasingly longer, yet lighter and more stable rotor blades, thus extending their life and performance. Moreover, coatings and films from ����AV protect the rotor blades and wind turbine towers from wind and weather. The products offered to protect the leading edges of rotor blades alone are able to reduce repair and maintenance costs by up to 30 percent. In this way, the ����AV materials used will enhance the productivity of the wind turbine while cutting production and operating costs. This presents major potential for manufacturers of wind turbines and operators of wind farms.

“Our portfolio is focused on high-growth markets, which include areas of importance of the future, such as electromobility and wind energy. We are confident that, as soon as the economy starts up again, demand for sustainable, innovative, and high-performance materials will continue to increase,” says Steilemann. ����AV also expects growing demand for energy efficiency in the long term, for example in the area of efficient insulating solutions for buildings and refrigeration appliances.

No dividend distribution due to negative net income

In his speech, CFO and Labor Director Dr. Thomas Toepfer explained to shareholders the impact on the Group’s EBITDA of high energy and raw material prices and a decline in demand over the course of the year. It fell in full-year 2022 by almost half over the prior-year figure to EUR 1.6 billion (previous year: EUR 3.1 billion).

“Our business performance in the past year was adversely affected by the global crises. Net income declined to EUR –272 million, in particular as a result of exceptional impairments of noncurrent assets and impairment losses. Our dividend policy specifies that between 35 percent and 55 percent of net income should be distributed as dividend. Due to the net loss incurred in fiscal 2022 and in accordance with our dividend policy, we have therefore resolved not to distribute any dividend for fiscal 2022,” explains Toepfer.

New Board of Management member Dr. Thorsten Dreier

Dr. Klaus Schäfer, ����AV’s Chief Technology Officer (CTO), will retire as of June 30, 2023. He will be succeeded as from July 1, 2023 by Dr. Thorsten Dreier, the new Chief Technology Officer with responsibility for Process Technology; Engineering; Group Health, Safety & Environment; and Group Procurement. After completing a doctorate in chemistry, he started his career in Bayer AG’s Polyurethane Business Group in 2002. This was followed by various management functions in different Group departments, including research and development as well as production and technology. In his most recent role, he was responsible for the global business with coating and adhesive raw materials (Coatings & Adhesives) in the Solutions & Specialties segment at ����AV.

Dreier introduced himself to shareholders in a brief video at the Annual General Meeting.

Markus Steilemann closed the Board of Management speech section with a conclusion for the past fiscal year and an outlook for the 2023 fiscal year, which has already started. In an environment that continues to be challenging, ����AV is in still a good position, given its solid balance sheet and a strategy aimed at sustainable growth. The company’s consistent focus on becoming fully circular remains a key to solving current and future challenges.

Other documents:

• You can find a recording of the 2023 Annual General Meeting, the manuscripts of the presentations and press photos at Media Kit | Annual General Meeting | ����AV
• The detailed voting results on the agenda items at the Annual General Meeting are available at Annual General Meeting I ����AV | ����AV

Here you can rewatch the 2023 virtual Annual General Meeting from April 19, 2023. 

Speeches:

You can download the speech of CEO Dr. Markus Steilemann, CFO Dr. Thomas Toepfer and Chairman of the Supervisory Board Dr. Richard Pott here.

Photos:

Further documents for the Annual General Meeting 2023:

Further documents for the Annual General Meeting, the agenda as well as the voting results can be found here.

Annual Report 2022:

The results of our fiscal year 2022, snackable stories behind the numbers and further information about ����AV can be found .

����AV at a Glance:

Are you looking for more information? Here you could find further facts about ����AV.

“We will have to cope with this unprecedented environment for the time being. We’re therefore using all the levers available to us to steer ����AV through the current situation,” said Dr. Markus Steilemann, CEO of ����AV. “In particular, the unparalleled price increases for fossil fuels show that ����AV’s strategic focus on becoming fully circular is the right path. Our products are vital in paving the way for a fossil-free future.” 

In view of the energy crisis in Europe and a weakening global economy, ����AV is systematically ensuring its economic ability to maneuver. The company is taking short- and medium-term cost-cutting measures, for example. ����AV has also initiated various measures to reduce its gas requirements in Germany and continues to work on making its processes even more energy-efficient. Technical optimization measures, for instance, are helping to improve energy efficiency in production. One example is the use of digital sensors to monitor steam traps, enabling ����AV to use steam as efficiently as possible in production. 

Full-year guidance for 2022 narrowed 

“The further significant weakening in overall economic conditions is also affecting our business performance. Despite the significant burdens from very high energy and raw material prices, we achieved our EBITDA forecast for the third quarter,” said Dr. Thomas Toepfer, CFO of ����AV. “Based on these results, we still expect to achieve the targets we have set ourselves for the full year as well.” 

����AV has narrowed the full-year guidance for 2022 that it issued on July 29, 2022, and now anticipates that EBITDA will be between EUR 1.7 billion and EUR 1.8 billion (previously: between EUR 1.7 billion and EUR 2.2 billion) and that the FOCF will be between EUR 0 million and EUR 100 million (previously: between EUR 0 million and EUR 500 million). Return on capital employed over the weighted average cost of capital is expected to be between minus two percentage points and minus one percentage point (previously: between minus two and plus two percentage points). GHG emissions measured as CO₂ equivalents are projected to be between 5.0 million metric tons and 5.4 million metric tons (previously: between 5.3 million metric tons and 5.8 million metric tons). 

Further milestones on the path to a circular economy 

����AV continued to press ahead with its vision of becoming fully circular in the third quarter of 2022 and achieved further milestones. As part of that, the Group is committed among other things to expanding its sources for alternative raw materials and thus eliminating the use of fossil resources, such as crude oil and natural gas, in the long term. 

Since September 2022, SOL Kohlensäure GmbH & Co. KG has supplied ����AV’s Lower Rhine sites with biogenic carbon dioxide (CO₂) under a supply partnership. This gas, which among other things is obtained as a by-product from the treatment of plant residues, is used by ����AV to produce plastics such as MDI (methylene diphenyl diisocyanate) or polycarbonate. SOL will supply up to 1,000 metric tons of biogenic CO₂ this year, enabling ����AV to save the same amount of CO₂ from fossil sources. The supply volume is to be increased substantially from 2023 on. 

����AV was also able to expand its portfolio of sustainable products in the third quarter. The launch of climate-neutral MDI and renewable TDI (tolulene diisocyanate) was followed in September 2022 by bio-circular polyether polyols – a sustainable component for polyurethane foams. ����AV uses renewable precursors such as organic waste or other residual materials to produce them, thus rounding out its range of components based on alternative raw materials for making rigid and flexible foams. These are used among other things as an efficient means of thermal insulation for buildings and refrigerators or, for example, in mattresses, upholstered furniture, car seats and shoes. 

Full circularity and cross-industry collaboration throughout the value chain are also the focus at the world’s largest plastics trade show , which ends on October 26th. ����AV is presenting innovative ideas and new technologies there in the fields of electrification, smart design, sustainable living and the circular economy – such as a new process to enable different materials in multilayer film packaging to be separated completely from each other, or a new, more sustainable concept for wallboxes, which are used to charge electric vehicles. 

Increase in sales in both segments 

Sales in the Performance Materials segment in the third quarter of 2022 rose by 6.6 percent compared to the prior-year quarter and were EUR 2.3 billion (previously: EUR 2.2 billion). The reasons for that were exchange rate movements and a higher selling price level. In contrast, a drop in total volumes sold – driven primarily by a downturn in demand – had a negative effect. The segment’s EBITDA fell by 92.5 percent to EUR 53 million (previously: EUR 708 million). This is mainly due to lower margins, since higher selling prices were able to offset the rise in raw material and energy prices only to a small extent. FOCF fell by 64.0 percent to EUR 93 million (previously: EUR 258 million), in particular due to the decline in EBITDA. 

Sales in the Solutions & Specialties segment in the third quarter of 2022 rose by 6.1 percent compared with the prior-year quarter to EUR 2.2 billion (previously: EUR 2.1 billion), mainly due to exchange rate movements and a higher selling price level. In contrast, the total volumes sold – due in particular to a downturn in demand – had a negative effect. The segment’s EBITDA rose to EUR 280 million, or by 26.7 percent compared to last year’s third quarter (previously: EUR 221 million). One of the reasons for this was lower provisions for short-term variable compensation. Margins remained stable at the last year’s level since higher selling prices were able to offset the rise in raw material and energy prices. FOCF increased by 25.0 percent to EUR 65 million (previously: EUR 52 million) due to the higher EBITDA. 

High price level in the first nine months of 2022 

Group sales in the first nine months of 2022 increased by 21.1 percent to EUR 14.0 billion (previously: EUR 11.6 billion). The main reasons for that were a high selling price level and exchange rate movements. The Group’s EBITDA in the first three quarters of 2022 fell by 31.7 percent to EUR 1.7 billion (previously: EUR 2.4 billion), mainly due to lower margins. This resulted from a considerable rise in raw material and energy prices, which could only be partly offset by a higher selling price level. Compared to the previous year, net income in the first nine months of 2022 fell by 52.3 percent to EUR 627 million (previously: EUR 1.3 billion). FOCF declined to EUR –412 million (previously: EUR 1.1 billion). This can be predominantly attributed to a lower EBITDA and an increase in funds tied up in working capital, especially given the payment of short-term variable compensation for the successful fiscal year 2021.

More information

• Please find a table showing key data for the third quarter 2022 in the sidecolumn.
   
• You can find the Quartely Statement Q3 2022 at
   
• The Annual Report 2021 is available at

• Chemical industry as a key factor against climate change – with strong partners 
• Together against climate change – with circular plastics
• ����AV collaboration with SABIC unlocks improved recyclability for mono-material flexible plastic pouches
• The world´s first wallbox with Makrolon^® RE
• Ultrathin and homogeneous
• New concept for circular solutions with alternative raw materials
• Photopolymer film for next generation AR displays
• ����AV simulations help optimize polyurethane foaming processes
• Cooperations for creative and sustainable solutions
• Innovative technology makes flexible packaging recyclable
• Improved sustainability in combination with freedom of design and functionality

����AV and Arcesso Dynamics cooperate in solid surface manufacturing

• ����AV and Arcesso Dynamics launch breakthrough in solid surface manufacturing
• Breakthrough technology from ����AV and Arcesso Dynamics used to create design chair
• ����AV and Arcesso Dynamics use breakthrough technology to create non-slip shower plate
• ����AV and Arcesso Dynamics achieve breakthrough in washbasin design

Videos:

Circular Economy @ ����AV:

Find more information here.

����AV at a glance:

Looking for more information? On this page you will find interesting facts about ����AV.

Dr. Thomas Toepfer, CFO of ����AV, said: “We are extremely satisfied with our debut transaction in this very active Schuldschein market. The high volume of EUR 650 million equivalent shows just how much confidence investors have in our company and bolsters our liquidity position substantially once again.”

The Schuldschein will bolster ����AV’s financial foundation and extend the average term of its financing portfolio. The company was also able to attract new investors from Europe and Asia, a step that further diversified its financing resources. ����AV was supported in the issuance process by Commerzbank, Helaba and Unicredit.

* The debt instrument is denominated in U.S. dollars and euros.

• EBITDA is expected to be between EUR 1,700 million and EUR 2,200 million. The previous forecast projected EBITDA between EUR 2,000 million and EUR 2,500 million. The consensus expected this figure to be EUR 2,342 million. 
   
• Free operating cash flow (FOCF) is expected to be between EUR 0 million and EUR 500 million. The previous forecast projected FOCF between EUR 400 million and EUR 900 million. The consensus expected this figure to be EUR 598 million. 
   
• Return on capital employed over weighted average cost of capital (ROCE over WACC) is expected to be between -2 and +2 percentage points. The previous forecast projected ROCE over WACC between +1 and +5 percentage points. 
   
• Greenhouse gas emissions, measured via CO₂ equivalents, are expected to be between 5.3 million tons and 5.8 million tons. The previous forecast projected greenhouse gas emissions between 5.5 million tons and 6.0 million tons. 

In the second quarter 2022, ����AV EBITDA was EUR 547 million, which is slightly above the previous forecast between EUR 430 million and EUR 530 million. This was supported by a faster than expected normalization of the lockdown-burdened supply chain situation in China. The consensus expected this figure to be EUR 509 million. Second quarter 2022 FOCF was EUR -462 million. This included the bonus pay-out for the fiscal year 2021 of EUR 475 Mio. 

Third quarter 2022 EBITDA is expected to be between EUR 300 million and EUR 400 million. 

The financial report for the second quarter 2022 will be published on August 2, 2022. 

Capital market expectations are based on the average values of the latest consensus estimates of financial analysts, recently published by Vara Research on July 12, 2022. 

Reduced earnings outlook for 2022

Given the ongoing coronavirus-lockdown in China, particularly around the Shanghai region, further significantly increasing energy and raw material costs and an assumed lower than expected global economic growth, ����AV reduced its guidance for fiscal year 2022 on May 2, 2022. The Group now expects EBITDA will be EUR 2.0 billion to EUR 2.5 billion (previous: EUR 2.5 billion to EUR 3.0 billion) and the FOCF will be EUR 400 million to EUR 900 million for the full year (previous: between EUR 1.0 billion and EUR 1.5 billion). The Group anticipates a return on capital employed over weighted average cost of capital (ROCE over WACC) between one percentage point and five percentage points (previous: between five and nine percentage points). ����AV’s greenhouse gas emissions measured as CO₂ equivalents are now projected to rise to between 5.5 million and 6.0 million metric tons (previous: between 5.6 and 6.1 million metric tons). The Group anticipates EBITDA for the second quarter will be EUR 430 million to EUR 530 million.

“We benefited from continuing high demand in the first quarter. Since the Ukraine war began, however, we have seen a significant increase in the risks to our energy supply and supply chains. That is compounded by a weakening global economy, as well as the challenges still posed by the impacts and restrictions related to the coronavirus pandemic, in particular in China,” stated Dr. Thomas Toepfer, CFO of ����AV. “We have consequently decided to adjust our guidance for the full year. We are continuously monitoring further developments so that we can steer ����AV as best as possible through these times.” 

After ����AV restructured its setup last year by reorganizing its three former reportable segments into the segments “Performance Materials” and “Solutions & Specialties,” the Group is reporting in its new control system for the first time in fiscal 2022. Instead of core volume growth as a KPI, ����AV has used EBITDA as a key indicator for growth since the beginning of the year. The company has also added a sustainability component for the first time, which is measured by direct and indirect (scope 1 and 2) greenhouse gas emissions. 

Progress toward a circular economy and climate neutrality 

����AV announced an ambitious climate target in March 2022: The Group is striving to become climate neutral and to reach net-zero emissions¹ by 2035. To achieve this, the company aims to reduce GHG emissions from its own production activities (scope 1) and from external energy sources (scope 2) by 60 percent to 2.2 million metric tons by 2030. In addition, indirect greenhouse gas emissions from upstream and downstream processes in the value chain (scope 3) are to be reduced further; a target for cutting them is to be defined in 2023. 

In the long term, ����AV aims to offer a climate neutral version of every product and is expanding its portfolio continuously. For example, the company has been supplying its customers with the world’s first climate neutral² polycarbonate since 2021. That was followed by inclusion of the world’s first climate neutral MDI in the product range in February 2022. As a result, ����AV is significantly reducing its carbon footprint from cradle to gate, helping its customers achieve their climate targets, and driving the transition to a circular economy. 

����AV made further progress on its path to meeting its ambitious climate targets and becoming fully circular in the first quarter of 2022. For example, the Group announced that it had finalised a joint agreement relating to the supply of up to 100,000 metric tons of green hydrogen and its derivatives with Fortescue Future Industries (FFI), a global green energy company based in Australia, at the beginning of the year. The deliveries, which could start as early as 2024, are intended for production sites in Asia, North America and Europe and will help ����AV reduce its GHG emissions by as much as 900,000 metric tons of CO₂ a year. 

Sales growth in both segments 

Sales in the Performance Materials segment increased by 37.2 percent to EUR 2.4 billion in the first quarter of 2022 (previous year: EUR 1.7 billion). The largest positive effect came from ����AV’s still advantageous competitive situation, which resulted in high average selling prices. EBITDA in Performance Materials fell slightly by 1.6 percent to EUR 620 million, but was nevertheless almost at the level of the prior-year quarter (previous year: EUR 630 million). This was largely the result of higher raw material and energy prices, which were able to be largely compensated for, albeit not fully, thus resulting in lower margins. The free operating cash flow fell by 56.8 percent to EUR 112 million (previous year: EUR 259 million), mainly because of a larger amount of cash tied up in working capital. 

The Solutions & Specialties segment posted a 45.3 percent increase in sales to EUR 2.2 billion in the first three months of fiscal 2022 (previous year: EUR 1.5 billion). In particular, the effect from the RFM acquisition and higher selling price levels helped increase sales. The segment’s EBITDA rose to EUR 224 million, or by 23.8 percent compared to last year’s first quarter (previous year: EUR 181 million), mostly on account of the acquisition of RFM. However, declining margins due to higher raw material and energy prices had an offsetting effect. The free operating cash flow of Solutions & Specialties fell to EUR –146 million (previous year: EUR 11 million) due to a larger amount of cash tied up in working capital compared with the prior-year quarter. 

More information

• Please find a table showing key data for ����AV AG for the first quarter 2022 in the sidecolumn.
   
• The Quarterly Statement Q1 2022 is available at 
   
• The Annual Report 2021 is available at

Capital market expectations are based on the average values of the latest consensus estimates of financial analysts, recently published by Vara Research on April 12, 2022. 

����AV adjusts its forecast for fiscal year 2022 as follows: 

• EBITDA is expected to be between EUR 2,000 million and EUR 2,500 million. The previous forecast projected EBITDA between EUR 2,500 million and EUR 3,000 million. The consensus expected this figure to be EUR 2,703 million. 
   
• Free operating cash flow (FOCF) is expected to be between EUR 400 million and EUR 900 million. The previous forecast projected FOCF between EUR 1,000 million and EUR 1,500 million. The consensus expected this figure to be EUR 1,176 million. 
   
• Return on capital employed over weighted average cost of capital (ROCE over WACC) is expected to be between one percentage point and five percentage points. The previous forecast projected ROCE over WACC between five percentage points and nine percentage points. 
   
• Greenhouse gas emissions, measured via CO₂ equivalents, are expected to be between 5.5 million tons and 6.0 million tons. The previous forecast projected greenhouse gas emissions between 5.6 million tons and 6.1 million tons. 

In the first quarter 2022, ����AV EBITDA was EUR 806 million, which is in line with the previous forecast between EUR 750 million and EUR 850 million. The consensus expected this figure to be EUR 774 million. First quarter 2022 FOCF was EUR 17 million. 

Second quarter 2022 EBITDA is expected to be between EUR 430 million and EUR 530 million. 

The financial report for the first quarter 2022 will be published on May 3, 2022. 

Focus on the circular economy and climate neutrality 

The Group presented its new strategy ‘Sustainable Future‘ and restructured its organization last year: The three former business units were reorganized into the two segments Performance Materials and Solutions & Specialties. “Our strong fiscal year 2021 provided impressive proof to the fact that our strategy is working and that we are on the right track with our systematic focus on circularity,” added Steilemann. 

����AV also announced in March 2022 that it is striving to become climate neutral and achieve net zero emissions* by 2035. The Group will make investments between EUR 250 million and EUR 600 million to accomplish that. “We accept responsibility and want to live up to our leadership role,” stated Dr. Markus Steilemann. “That means we aim to be climate neutral in less than 13 years.” The first major milestone is to be achieved by 2030. The Group plans to cut greenhouse gas emissions from its own production operations (scope 1) and from external energy sources (scope 2) by 60 percent compared to 2020 levels. ����AV is focusing on three levers on its path toward climate neutrality: more sustainable production processes, renewable electricity and renewable steam. A long-term transition to renewable sources of energies and raw materials is key to reducing dependency on fossil fuels and therefore on gas imports, especially in view of the current geopolitical situation. 

����AV’s long-term objective is to reduce greenhouse gas emissions throughout the entire value chain. Consequently, ����AV’s next step will be to publish a target for cutting scope 3 emissions in the coming year. “Climate neutrality at ����AV is closely linked to becoming fully circular. Climate neutral, circular products are the products of the future,” said Steilemann. “There can be no sustainability without ����AV.” The Group aims long term to offer every product in a climate neutral version. 

Record dividend: highest payout in the Group’s history 

Dr. Thomas Toepfer, CFO and Labor Director of ����AV, put the strong results for fiscal 2021 as a whole into context for shareholders in his speech. “Due to strong demand for our products, we were completely sold out for a large portion of the year,” said Toepfer. 

The Annual General Meeting approved the proposed dividend of EUR 3.40 per no-par value share. Before ����AV announced its share buy-back program, that was equivalent to a total distribution of EUR 657 million, a figure that has fallen to around EUR 651 million since the program was launched. The payout ratio is 40 percent of the Group’s net income. “That’s the highest dividend in the history of our company,” added Toepfer. ����AV redefined its dividend policy last fiscal year and now aims for a payout ratio of between 35 and 55 percent of the Group’s net income. 

The Group announced on February 28, 2022, that it intended to buy back its own shares to a total volume of around EUR 500 million over a period of two years. “This program underscores our clear focus on creating value for our shareholders and our commitment to an attractive dividend,” said Toepfer. 

New member of the Supervisory Board: Dr. Sven Schneider confirmed 

In a further agenda item at this year’s Annual General Meeting, Dr. Sven Schneider, who has been CFO of Infineon Technologies AG since 2019, was nominated as a new member of the Supervisory Board. He succeeds Prof. Dr. Rolf Nonnenmacher, who resigned his seat and thus his position as Chair of the Audit Committee effective the end of the Annual General Meeting.

The Supervisory Board thanked Prof. Dr. Nonnenmacher for his many years of dedication on ����AV’s Supervisory Board, on which he had served since the company was founded in 2015. “On behalf of the Supervisory Board I wish to thank Prof. Nonnenmacher deeply for his many years of outstanding work, the trusted working relationship with him, the many valuable discussions, and his commitment to our company,” said Dr. Richard Pott, Chairman of ����AV’s Supervisory Board. At the same time the Supervisory Board welcomed Dr. Sven Schneider: “We feel sure that Dr. Schneider is an excellent choice for our Supervisory Board and are pleased that Dr. Schneider intends to stand for the chairmanship of our Audit Committee,” added Pott. “He brings with him extensive profession knowledge, expertise and experience as a CFO and ideally complements our Supervisory Board’s skills profile.”

Before joining the Management Board of Infineon Technologies AG, Dr. Sven Schneider held several posts at Linde AG, lastly as CFO on the Board of Directors, as well as Board Spokesman and Labor Director.

Further information and documents 

• You can find a recording of the 2022 Annual General Meeting, the manuscripts of the presentations and press photos at Press Kit | Annual General Meeting | ����AV.
   
• The detailed voting results on the agenda items at the Annual General Meeting are available at Annual General Meeting I ����AV | ����AV.

Here you can rewatch the 2022 virtual Annual General Meeting from April 21, 2022. 

Speeches:

You can download the speech of CEO Dr. Markus Steilemann, CFO Dr. Thomas Toepfer and Chairman of the Supervisory Board Dr. Richard Pott here.

Photos:

Further documents for the Annual General Meeting 2022:

Further documents for the Annual General Meeting, the agenda as well as the voting results can be found here.

Annual Report 2021:

The results of our fiscal year 2021, stories behind the numbers and further information about ����AV can be found .

����AV at a Glance:

Are you looking for more information? Here you could find further facts about ����AV.

Ideally positioned: new strategy and Group structure, successful integration of RFM

After presenting its new strategy “Sustainable Future” in February 2021, ����AV achieved important milestones in implementing it in the course of the fiscal year. The strategy has customer centricity and sustainable growth at its core. As part of that, the Group restructured its organization in July 2021 and focused its businesses even more closely on the requirements of individual markets and on customers’ needs. ����AV has since been divided into the two reportable segments Performance Materials and 
Solutions & Specialties. Integration of the Resins & Functional Materials business acquired from DSM in the Solutions & Specialties segment is proceeding successfully. The company was thus already able to generate synergy effects of EUR 26 million, almost twice the figure originally anticipated for 2021. ����AV expects to generate permanent synergies totaling around EUR 120 million annually by 2025. 

Record dividend: highest payout in the Group’s history 

Given its very good performance in fiscal 2021, ����AV plans to propose a dividend of EUR 3.40 per share to the Annual General Meeting on April 21, 2022. That is equal to a payout ratio of 41 percent. ����AV redefined its dividend policy last fiscal year. It envisages a payout ratio between 35 and 55 percent of net income in order to create a stronger link to the Group’s overall business situation.

“We can look back on an extremely successful year marked by high demand. Not least, that is reflected in the fact that we were virtually sold out over large stretches of 2021,” said Dr. Thomas Toepfer, CFO of ����AV. “In the past year we have created the foundation for further sustainable growth with our new Group structure.”

In light of the successful business development, ����AV's Board of Management has also resolved on a share buyback program with a total volume of approximately EUR 500 million over the next two years. The repurchased shares are subsequently to be cancelled and the share capital is to be reduced accordingly. “Major acquisitions are not ����AV's focus at the moment; instead, we believe investing in our own shares is the best investment," Dr. Thomas Toepfer continued. "We are convinced of our company and want to create additional value for our shareholders."

����AV to become climate neutral: ambitious targets announced 

����AV is making systematic advances on its path to circular plastics production and has set bold climate targets. The Group is striving to become climate neutral and achieve net zero* emissions by 2035. On the path to achieving that, ����AV has already reduced its specific greenhouse gas emissions per metric ton of product produced by 54 percent in 2021 compared to 2005, achieving its sustainability target for 2025 already today. 

Now, the company plans to cut greenhouse gas emissions from its own production operations (scope 1) and from external energy sources (scope 2) by 60 percent to 2.2 million metric tons by 2030. In the long run, ����AV aims to use renewable energies only, such as wind power and solar energy, as well as alternative raw materials such as biomass, waste, CO₂ or hydrogen within its production processes. In addition, a reduction target for the long-term reduction of indirect greenhouse gas emissions from upstream and downstream processes in the value chain (scope 3) is to follow in 2023. 

Investments in a circular future and sustainable growth 

As a pioneer for a circular and climate neutral future, ����AV has been awarded ISCC PLUS mass balance certification for several of its production facilities. Further sites will also acquire it in the future alongside the certified sites in Antwerp (Belgium), Shanghai (China) and the German Lower Rhine locations at Leverkusen, Dormagen and Krefeld-Uerdingen. ����AV can offer its customers, for example, the rigid foam precursor MDI and the high-performance plastic polycarbonate as “drop-in solutions”; they are based on alternative raw material sources in accordance with the mass balance approach and are made in a quality identical to conventional counterparts. As a result, the company helps its customers steadily decrease their carbon footprint across the value chain. 

����AV also achieved further successes last fiscal year in gradually switching its production sites to green electricity. The company operates cooperation models with energy suppliers who generate onshore and offshore wind power and solar energy so that it can keep on cutting its greenhouse gas emissions. To enable that, the Group signed multiple Power Purchase Agreements for its sites in Belgium, China and Germany in 2021. 

Outlook for 2022: continued high earnings; expanded management system 

����AV is updating and expanding its existing management system at the start of fiscal year 2022. The previously used growth indicator of core volume growth will be replaced by EBITDA. The Group is also adding a sustainability component, measured by direct and indirect greenhouse gas emissions (scope 1 and 2) in 2022. 

“Adaptation of our Group controlling is a further logical step toward circularity,” said Dr. Markus Steilemann. “With regard to our ambitious goal of becoming climate neutral, we will thus link profitability and sustainability even more closely in the future and continue on our sustainable growth trajectory.” 

����AV expects an EBITDA value between EUR 2.5 billion and EUR 3.0 billion and a FOCF of between EUR 1.0 billion and EUR 1.5 billion for fiscal 2022. The Group anticipates that the ROCE will be between 12 and 16 percent. ����AV expects greenhouse gas emissions, measured by CO₂ equivalents, to increase to between 5.6 million and 6.1 million metric tons (level at the end of 2021: 5.2 million metric tons). This increase is mainly attributable to a less favorable mix of external electricity purchases for ����AV, as well as to an expansion in production volumes. ����AV anticipates EBITDA for the first quarter of 2022 to be between EUR 750 million and 850 million. 

Growth in both segments in 2021, successful start with the new structure 

The Performance Materials segment generated year-over-year core volume growth of 0.3 percent in fiscal 2021. Despite solid global demand, the growth potential of the segment was constrained by limited product availability resulting from, among other things, unplanned weather-related production outages in the first quarter of 2021. The segment’s sales grew by 48.9 percent to EUR 8.1 billion (previous year: EUR 5.5 billion), in particular due to the higher average selling prices. Increased margins due to an advantageous competitive situation and strong demand meant that EBITDA rose year over year to EUR 2.6 billion (previous year: EUR 896 million). 

Core volumes sold in the Solutions & Specialties segment increased in the past fiscal year by 26 percent year on year. In particular, additional volumes from the acquired RFM business contributed 16 percentage points to that. In addition, higher core volumes sold in the automotive and transportation industry and in the electrical, electronics and household appliances industry, especially in the EMLA and APAC regions, had a positive volume effect. At the same time, reduced product availability, for instance due to raw material bottlenecks, had a negative impact on core volumes sold and limited further organic growth opportunities. Higher selling prices meant that the segment’s sales in 2021 increased by 49.3 percent to EUR 7.6 billion (previous year: EUR 5.1 billion), while EBITDA rose slightly year over year by 1.1 percent to EUR 751 million (previous year: 743 million). 

Buoyant prices boost sales in the fourth quarter of 2021 

Core volumes sold in the fourth quarter of 2021 rose by 4.6 percent compared with the previous year. Group sales in the final quarter of the year grew by 44.3 percent to EUR 4.3 billion (previous year: EUR 3.0 billion), in particular on the back of higher selling prices as a consequence of the rise in raw material prices. EBITDA grew year on year by 4.1 percent to EUR 663 million (previous year: EUR 637 million). Net income in the fourth quarter of 2021 fell by 3.2 percent to EUR 302 million (previous year: EUR 312 million), while the FOCF fell by 9.6 percent to EUR 356 million (previous year: EUR 394 million). 

����AV has now defined a further bold target: the Group aims to become climate neutral and achieve net zero emissions by 2035 for scope 1 and scope 2. On the path to achieving this goal, the company plans to cut greenhouse gas emissions from its own production (scope 1) and from external energy sources (scope 2) by 60 percent² to 2.2 million metric tons by 2030. In addition, indirect greenhouse gas emissions from upstream and downstream processes in the value chain (scope 3) will be further reduced. ����AV intents to announce a reduction target for this by 2023.

To achieve net zero emissions, ����AV anticipates dedicated investments of an accumulated EUR 250 million to EUR 600 million by 2030, resulting in lower operating expenses of expected EUR 50 million to 100 million annually due to growing energy efficiency. On its path to achieve net zero emissions, ����AV also expects an increase in operating expenses in the magnitude of a low three-digit million EUR amount annually. These cost assumptions are based on the historic experience that prices for fossil-based energies are lower than prices for renewable energies.  

“For the past two years, we have been working at full speed on our vision to become fully circular. We have already reached important milestones on this path and continue to set ourselves ambitious goals. Thanks to this approach, we are a pioneer in our industry and have accomplished many successes. One next milestone are our bold climate targets,” said Dr. Markus Steilemann, Chief Executive Officer of ����AV.

“In a circular economy, we can protect the climate, nature and resources and achieve sustainable growth that respects planetary boundaries. ����AV and the chemical industry are part of the solution. Sustainability cannot be done alone and will require a greater effort from everyone to achieve the goals of the Paris Climate Agreement. Policymakers, business and society must work together to achieve ambitious climate goals.”

Already now, based on ����AV’s previous greenhouse gas emissions reduction targets, major milestones have been reached. The Group met its ambition to reduce the greenhouse gas emissions by 50 percent per metric ton of product produced by 2025 earlier than expected. Thanks to successfully implemented operational excellence in all its major production sites, ����AV has cut emissions by 54 percent already in 2021, compared to base year 2005. 

A key aspect of the new 2035 reduction target is meeting the goal of the Paris Climate Agreement, under which the world community aims to limit global warming to 1.5 degrees Celsius.

Three levers make a vital contribution to achieving the climate targets

• Production processes will be improved further and energy efficiency enhanced to achieve even more sustainable manufacturing. One focus is on reducing nitrous oxide emissions. That will be possible through greater use of innovative catalyst technology. In addition, production plants can be controlled more efficiently thanks to further digitalization of the facilities and the use of digital technologies, while processes can be optimized using digital simulations. Digital technologies also help collect and track emissions data throughout the value chain.
   
• ����AV’s production sites worldwide are to be gradually converted to renewable electricity. That includes the use of offshore wind power, backed for example by a supply agreement with the energy provider Ørsted, which will cover 10 percent of the electricity required by the company’s sites in Germany from 2025 on. Onshore wind energy will also be used, for example under the power purchase agreement with ENGIE, that covers 45 percent of the electricity needs of the ����AV site in Antwerp, Belgium. About 10 percent of the electricity ����AV needs in Shanghai, China, already comes from the solar parks of Datang Wuzhong New Energy Co. In addition to the existing cooperation models with power suppliers, further agreements are being planned in order to achieve a net zero carbon footprint. 
   
• Steam is an important energy source for chemical production processes. Converting steam generation from fossil to renewable energy sources is a challenge that ����AV intends to solve by various routes. To this end, the company is looking into the use of biogas and green natural gas as an energy source to generate renewable steam. Green hydrogen and green ammonia or green electricity could also be used as energy source for steam generation.

����AV is updating and expanding its existing management system at the start of fiscal year 2022. The Group is also adding a sustainability component, measured by direct and indirect greenhouse gas emissions (scope 1 and 2) in 2022. Reducing greenhouse gas emissions (scope 1) has been a key performance indicator used as a component top management’s long-term compensation since January 2021.

����AV will offer every product in a climate neutral version

“We aim to shift all our production processes and products completely to circular principles in the long-term, and we intend to support meeting our and climate objectives of our customers at the same time,” said Lynette Chung, Chief Sustainability Officer at ����AV. “Circularity and climate efforts are two sides of the same coin for us. With our climate neutral product offerings, our customers can thus expect us to fulfill both needs at the same time. We aim to make sustainability decisions as simple as possible for our customers.”

Focused on customer centricity, ����AV is already expanding its portfolio of climate neutral products continuously. Fundamental macro-economic challenges are addressed by enabling sustainable and unique solutions in key markets. The high demand for sustainable solutions is additionally growing due to global trends. Urbanization, for example, increases the focus on constructing new energy-efficient buildings and renovating old ones. Large quantities of MDI are used worldwide as a raw material for making rigid polyurethane (PU) foam, a very effective insulation material for buildings and refrigerators. Now ����AV has added a climate neutral³ MDI to the product portfolio. 40 million metric tons of CO₂ equivalent could be saved by using PU insulation. The new MDI types are climate neutral from the cradle to the gate thanks to the use of precursors from ISCC PLUS-certified mass-balanced organic waste and residual materials.

Another groundbreaking example for sustainable products is ����AV’s world first climate neutral⁴ polycarbonate, made using raw materials from mass-balanced organic waste and residual materials as well as renewable energy. With the increasing trend of electromobility and the regulatory push for electric vehicles (EV), charging systems need to grow continuously, too. Using the climate neutral polycarbonate for EV charger could enable savings up to 450 kilotons CO₂ equivalent by 2030. ����AV’s climate neutral polycarbonate is being shipped to customers since 2021.

The share buyback program is based on the authorization by the Annual General Meeting of ����AV on April 12, 2019, authorizing the Board of Management to purchase up to 10 percent of the company’s share capital until April 11, 2024.

The purchase shall be executed via stock exchange and be conducted in compliance with the safe harbor provisions of Article 5 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of April 16, 2014 (MAR) in conjunction with the provisions of the Commission Delegated Regulation (EU) 2016/1052 of March 8, 2016.