LANXESS AG — Interim / Quarterly Report 2009

Nov 13, 2009

Key Data

€ llio mi n	Q3 2 00 8	Q 3 20 09	Ch % an ge	9M 2 00 8	9M 2 00 9	Ch % an ge
Sa les	1, 81 4	1,3 73	(2 ) 4.3	5, 11 4	3, 66 5	(2 ) 8.3
EB IT DA ion als pt p re ex ce	19 2	14 3	(2 ) 5.5	63 5	32 1	(4 ) 9.4
EB IT DA als gin ion pt m ar p re ex ce	10 .6%	10 .4%		12 .4%	8.8 %
EB IT DA	18 3	13 0	(2 ) 9.0	57 2	30 0	(4 ) 7.6
EB IT tio ls pr e e xc ep na	12 0	77	(3 ) 5.8	43 8	13 0	(7 ) 0.3
EB IT	10 8	64	(4 7) 0.	36 9	10 6	(7 ) 1.3
EB IT in ma rg	6. 0%	4. 7%		7. 2%	2.9 %
(l s)1 ) Ne t in co me os	56	23	(5 ) 8.9	21 5	26	(8 ) 7.9
e ( €) 1) Ea ing sh rn s p er ar	0. 67	0. 28	(5 ) 8.2	2. 58	0.3 1	(8 ) 8.0
Ca sh flo fro ati tiv itie w m op er ng ac s	18 2	3 15	(1 ) 5.9	30 9	43 2	39 .8
De iat ion d a rti tio pr ec an mo za n	75	66	(1 ) 2.0	20 3	19 4	(4 .4)
Ca sh utf low s f al nd pit itu o or ca ex pe res	69	52	(2 6) 4.	16 9	16 1	(4 .7)
1) To l a ta ets ss				2) 4,5 92	5, 12 2	11 .5
y ( ts) 1) Eq lud llin uit inc ing g i tro nte no n-c on res				2) 1,3 39	24 1,4	6.3
o1) Eq uit ati y r				2) 29 .2%	27 .8%
t f Ne ina ial lia bil itie nc s				) 42 86	77 9	(9 .8)
(a ) Em plo f S mb 30 te ye es s o ep er				2) 14 ,7 97	14 ,60 4	(1 .3)

1) 2008 fi gures restated

2) As of December 31, 2008

HIGHLIGHTSQ3 2009

FIRST LANXESS WORLD RUBBER DAY

On September 12, LANXESS celebrated the invention of synthetic rubber by chemist Fritz Hofmann exactly 100 years ago by staging a scientifi c colloquium with distinguished speakers. Over 400 guests from 18 countries attended the event in Cologne to learn more about the latest innovations, the future possibilities and the market potential of this versatile material.

FURTHER BOND SUCCESSFULLY PLACED

ACQUISITIONS IN INDIA AND CHINA COMPLETED ON SCHEDULE

LANXESS successfully completed the acquisitions of the businesses and assets of Indian company Gwalior Chemical Industries Ltd. and Chinese-based Jiangsu Polyols Chemical Co. Ltd. following approval of the transactions by the antitrust authorities and, in the case of the Indian company, the Gwalior shareholders. Both transactions took economic and legal effect on September 1, 2009. LANXESS has already begun integrating the two businesses into the Group.

CONTENTS

KEY DATA

• HIGHLIGHTS Q3 2009
• LANXESS STOCK2

INTERIM GROUP MANAGEMENT REPORT4

• Business Trends and Economic Situation4
• Business Trends by Region 7
• Segment Information 8
• Financial Condition11
• Signifi cant Opportunities and Risks 13
• Outlook13
• Events After the Reporting Period 13

CONDENSED CONSOLI-DATED INTERIM FINANCIAL STATEMENTS14

• Income Statement14
• Statement of Financial Position15
• Statement of Changes in Equity 16
• Statement of Comprehensive Income 16
• Statement of Cash Flows17
• Segment and Region Data 18
• Notes to the Condensed Consolidated Interim Financial Statements20

CONTACT, MASTHEAD 24

PROMISING NEW RESEARCH ALLIANCES

LANXESS and the Russian Academy of Sciences (RAS) – one of the world's most distinguished scientific institutions – recently signed a cooperative research agreement. The two parties aim to actively exchange information on scientifi c trends and research discoveries and to initiate cooperation projects. At the same time, a new alliance between science and industry was launched in Germany with the goal of developing an innovative technology for energy-effi cient and environmentally friendly synthetic rubber production. Partners in the alliance are LANXESS, Bayer Technology Services, Dortmund Technical University, Bonn University and specialty technology equipment supplier Buss-SMS-Canzler GmbH.

STRATEGIC PARTNERSHIP WITH SPECIALTY OILS PRODUCER NYNAS

LANXESS aims to globally forgo the use of DAE oils in the production of synthetic rubbers as of December 1, 2009. DAE oils are suspected of having a negative impact on the environment and human health. For this reason, their use in tires sold in Europe and Japan will be prohibited by law starting in 2010. To safeguard the supply of alternative products, the Performance Butadiene Rubbers business unit will enter into a strategic alliance with Nynas, the Swedish producer of specialty oils. Nynas supplies eco-friendly oils that were developed particularly for the manufacture of tires and are available globally without restriction.

" The ICIS Company of the Year Award goes to LANXESS for its outstanding financial performance in a challenging 2008."

Joseph Chang, Global Editor of ICIS Chemical Business

ICIS HONORS LANXESS'S FINANCIAL PERFORMANCE

ICIS Chemical Business magazine, one of the world's leading information providers for industry, named LANXESS 'Company of the Year.' ICIS selected LANXESS for the award because it increased net income by 53% on nearly fl at sales in 2008. The magazine found this all the more remarkable given that the global economic crisis took hold in the fourth quarter of the year. It said LANXESS reacted promptly and effectively to the downturn, even achieving its growth and fi nancial targets for 2009 a year earlier than planned.

In Brazil, LANXESS was rated among the 25 most innovative companies. The honor was bestowed by Época Negócios, one of Brazil's leading business journals, the Forum for Innovation of the Getúlio Vargas Foundation (FGV) and the Great Place to Work® Institute. About 100 companies took part in the survey.

LANXESS INTERIM REPORT Q3 2009 LANXESS STOCK The global stock market recovery already experienced in the second quarter of 2009 gained new momentum from the end of July. Among the indices posting large gains was Germany's leading index, the DAX, which reached its year-to-date high in the third quarter.

Standing at 5,675 points at the end of the third quarter, the DAX gained 18% in this period alone and some 40% since the beginning of the second quarter. The MDAX jumped 27% in, the reporting period to above 7,000 points after starting July at below 6,000 points. The growth in these indices was propelled in particular by more upbeat economic indicators from the United States. The leading U.S. stock index, the Dow Jones Industrial Average, also progressively rebounded in light of these positive economic signals, reaching 9,000 points at the end of July for the first time in 2009. By the end of the quarter, this index was close to the 10,000-point mark again for the first time in a year. The Dow Jones STOXX 600 ChemicalsSM also moved ahead in the period under review, improving by 20% to 396 points.

The German indices received further stimulus from Asia, where China's economic recovery was a major factor. Economic sentiment indicators improved in Germany too. In spite of a clear upward trend in the third quarter, stock markets remained volatile. Although confidence in the markets is slowly being restored amid increasing hopes that the crisis is nearing an end, market participants are still skeptical and cautious as to whether this trend can be sustained.

LANXESS stock also rose appreciably in the third quarter of 2009. Having recovered to €20 in late July for the first time since September 2008, the shares stayed above €20 during the third quarter, with a year-to-date high of €24.08, and by September 30 had risen 33% on the quarter. Thanks to this encouraging gain, LANXESS stock once more outperformed the benchmark indices MDAX and Dow Jones STOXX 600 ChemicalsSM, this time by 6% and 13%, respectively. It maintained its upside momentum at the start of the fourth quarter, rising above €25.

One of LANXESS's principal capital market news items in the third quarter concerned the successful closing of the Group's acquisitions in the BRIC countries India and China. The legal and economic transfers of the businesses and assets of Indian company Gwalior Chemical Industries Ltd. and Chinese-based Jiangsu Polyols Chemical Co. Ltd. were completed on September 1, 2009. These two companies' activities complement and strengthen the portfolio of LANXESS' Basic Chemicals business unit.

Another highlight of the third quarter was the improvement in LANXESS's financial position. By issuing a new bond in September with a volume of €200 million and a seven-year term, LANXESS succeeded in extending its debt maturity profile through the year 2016. Part of the issue proceeds (approximately €100 million) was used for the early repayment of bank loans that LANXESS arranged to finance the acquisition of Petroflex S.A., Brazil. The remaining €100 million served to repurchase a portion of LANXESS's 2005 bond.

Having already issued a bond in April 2009, LANXESS thus succeeded in placing a further bond in what remained difficult market conditions. The new bond has a 5.5% coupon and is traded on the Luxembourg Stock Exchange under ISIN XS0452802175.

Stock Performance vs. Indices

LANXESS Stock

		Q4 2 00 8	Q 1 2 00 9	Q 2 20 09	Q 3 20 09
1) Ca al ck /n of sh pit sto o. ar es	€/ f s ha no . o res	83 ,20 2, 67 0	83 ,20 2, 67 0	83 ,20 2, 67 0	83 ,20 2, 67 0
1) Ma rke ita liz ati t c ap on	€ bil lio n	1. 14	1. 07	1. 47	1.9 6
Hi gh /lo fo he iod r t w p er	€	19 .80 /1 0. 28	14 .73 /1 1.0 6	18 .95 /1 2.4 9	24 .08 /1 6.3 7
e1) Cl ing ric os p	€	13 .73	12 .83	17 .6 6	23 .55
Tr ad ing lum vo e	illio ha m n s res	2 57 .44	33 .00 4	36 72 .1	36 0 .75
Ea sh ing rn s p er ar e	€	(0 )2) .39	(0 7) .1	0. 20	0. 28

1) end of quarter: Q4: Dec. 31, 2008, Q1: March 31, 2009, Q2: June 30, 2009, Q3: Sep. 30, 2009

2) 2008 fi gures restated

Reported Holdings of 3% or above by Institutional Investors (as of October 10, 2009)

o ( A) C , S US Do dg e & F isc ox an ra nc	10 .25 %
(U ) Gr t G SA nli gh , N Yo rk ee ro up ew	5. 01 %
(U ) Th ird A e M t L LC , N Yo rk SA ve nu an ag em en ew	4. 94 %
1) J. P. Mo rg an	3. 69 %

1) The reported holdings of J.P. Morgan comprise the shares owned by several J.P. Morgan companies that have each submitted voting rights notifi cations.

LANXESS INTERIM REPORT Q3 2009 INTERIM GROUP MANAGEMENT REPORT AS OF SEPTEMBER 30, 2009

• Sales down 24.3% year on year due to the economic crisis; up 10.9% from Q2
• Prices and volumes again increase from the preceding quarter
• EBITDA pre exceptionals of €143 million
• EBITDA margin 10.4%, close to year-earlier level
• Flexible asset and cost management successful
• Challenge09-12 package effectively implemented
• Positive net income of €23 million
• Net financial debt of €779 million, maturity profile improved by bond issues
• Acquisitions in Asia successfully completed
• Outlook: EBITDA pre exceptionals of €400–€420 million for 2009

BUSINESS TRENDS AND ECONOMIC SITUATION

Economic environment The global business environment in the third quarter of 2009 continued to be dominated by persistently difficult economic conditions, although the first signs of a recovery were discernible. While overall demand remained subdued, some sectors saw stabilization or slight improvement compared with the preceding quarter. Of LANXESS's customer industries, the auto and tire sectors were particularly challenged by the general situation of the past twelve months. Economic stimulus measures cushioned the slump in these markets in the individual countries with varying degrees of success. In China, the steps taken to boost the economy resulted in a very positive trend. Global chemical industry output remained well below 2008 levels.

In Asia, the upturn in economic development seen in the second quarter continued. By contrast, demand remained very sluggish in North America and Europe. Germany's economic situation remained characterized by relatively low exports. German chemical industry output improved slightly in the third quarter compared with the second but was still down significantly year on year.

Sales Sales of the LANXESS Group came to €1,373 million in the third quarter of 2009, down €441 million, or 24.3%, from €1,814 million in the same period of 2008. Adjusted for positive portfolio and currency effects, especially from the U.S. dollar, of 2.6% in total, operational sales fell by 26.9%. Selling prices retreated by 16.1% from the particularly strong prior-year quarter in light of declining raw material costs. Volumes receded by 10.8%. The sales from the business activities of Gwalior in India and Jiangsu Polyols in China, both acquired on September 1, 2009, led to a small positive portfolio effect of 0.2%. LANXESS posted a mainly volume-driven sales increase of more than 10% compared with the second quarter of 2009, thanks to the recovery in demand in some markets.

Effects on Sales

%	Q3 2 00 9	9M 2 00 9
Pr ice	(1 1) 6.	(1 ) 0.0
Vo lum e	(1 8 ) 0.	(2 6) 2.
Cu rre nc y	2. 4	3. 2
Po rtf oli o	0. 2	1.1
	(2 3) 4.	(2 3) 8.

The fall in demand brought about by the crisis pushed volumes down in all operating segments, in some cases by double-digit percentages. At segment level, selling prices were also below the previous year, the resulting drop in revenues being mitigated by slightly positive currency effects.

The Performance Polymers segment suffered the steepest sales decline of minus 30.1%. These lower revenues were due mainly to the downward pressure exerted on selling prices by a substantial drop in raw material costs. Volumes declined year on year by just a single-digit percentage. Compared with the preceding quarters, however, volumes actually rose thanks to a slight recovery in demand at the start of the reporting period. Sales in the Advanced Intermediates segment moved back by 17.4%, chiefly as a result of lower volumes. This decrease was exacerbated by price reductions mandated by the price adjustment agreements that exist in some cases. Currency changes and the two portfolio additions in India and China had a modest offsetting effect. Sales in the Performance Chemicals segment came in 18.3% below the prior-year period, also because of a drop in volumes. Selling prices moved only slightly lower. The negative effects were somewhat cushioned by positive currency changes.

Sales by Segment

€ mi llio n	Q3 2 00 8	Q 3 20 09	Ch % an ge	Pro rtio f po n o Gr ale ou p s s in %	9M 2 00 8	9M 2 00 9	Ch % an ge	Pr ion of ort op Gr ale ou p s s in %
Pe rfo P oly rm an ce me rs	93 8	65 6	(3 1) 0.	47 .8	2,5 39	1,6 63	(3 ) 4.5	45 .4
Ad ed In ed iat te va nc rm es	34 4	28 4	(1 ) 7.4	20 .7	99 3	82 7	(1 ) 6.7	22 .6
Pe rfo C he ls mi rm an ce ca	52 0	42 5	(1 ) 8.3	30 .9	38 1,5	48 1,1	(2 ) 5.4	31 .3
Re ilia tio co nc n	12	8	(3 ) 3.3	0. 6	44	27	(3 6) 8.	0. 7
	1,8 14	1,3 73	(2 3) 4.	10 0. 0	5, 11 4	3, 66 5	(2 3) 8.	10 0. 0

Business receded markedly in most of LANXESS's sales regions, with the exception of Asia-Pacific, where the recovery that set in at the end of the preceding quarter continued, especially in China. Sales in the Asia-Pacific region topped the prior-year figure by as much as 6.6%, an improvement attributable to the Performance Polymers business. In the other reporting regions, all segments saw demand for their products fall, in some cases significantly, and selling prices were eroded by the drop in raw material costs.

Gross profit The cost of sales in the third quarter of 2009 – down 25.5% to €1,050 million – declined faster than revenues. Gross profit fell by 20.2% to €323 million. The gross profit margin, at 23.5%, surpassed the 22.3% for the prior-year period by 1.2 percentage points. Faced with a clear under-utilization of production capacities due to the collapse in demand, the LANXESS Group responded with its global program of flexible asset and cost management. We selectively variabilized costs in under-utilized facilities through a digital operational approach that allows us – depending on the circumstances – either to operate plants or plant units to capacity or to temporarily shut them down. This created the conditions for reducing the costs of under-utilization.

LANXESS had already taken action at the beginning of 2009 as part of its Challenge09 program to reduce these costs by way of numerous technical measures and shorter working hours accompanied by cuts in employee compensation that also apply to all management levels worldwide, including the Board of Management. As in the preceding three months, these measures led to a substantial drop in costs throughout the Group in the third quarter of 2009.

The flexible asset and cost management supported LANXESS' pricebefore-volume strategy in the third quarter as it did in the second, with capacity management being fine-tuned to match current demand. Thus neither did surplus production have to be sold off in the market nor did unnecessary inventory build-up take place. The digital plant operating models combined with the Challenge09 program make it possible to operate LANXESS' large production facilities profitably even at considerably reduced capacities. The effect of this successful concept is apparent from the way our margins have stabilized. In August 2009 the Challenge09 program was extended through 2012 to create the basis for sustainable stabilization of margins. The successful implementation of the Challenge09-12 measures and the drop in raw material and energy costs offset the fall in selling prices. Pricing was strictly aligned to the movement in procurement prices. Capacity utilization improved slightly compared with the two preceding quarters. The further increase in some raw material prices in the third quarter of 2009 and the customary delay in passing the increases along in selling prices had the expected effects. Pull-forward effects and the related early inventory replenishment by customers following the announcement of price increases for the fourth quarter had a positive impact.

€ mi llio n	Q3 2 00 8	Q 3 20 09	Ch % an ge	9M 2 00 8	9M 2 00 9	Ch % an ge
Pe rfo P oly rm an ce me rs	12 7	76	(4 2) 0.	35 8	13 6	(6 ) 2.0
Ad ed In ed iat te va nc rm es	40	40	0.0	14 5	12 4	(1 ) 4.5
C Pe rfo he mi ls rm an ce ca	65	67	3. 1	22 5	15 0	(3 ) 3.3
Re ilia tio co nc n	(4 0)	(4 0)	0.0	(9 3)	(8 9)	4.3
	19 2	14 3	(2 5) 5.	63 5	32 1	(4 4) 9.

EBITDA and EBIT The operating result before depreciation and amortization (EBITDA) pre exceptionals for the third quarter of 2009, at €143 million, was 25.5% below the same quarter a year ago. However, it surpassed the figure for the second quarter of 2009 by a substantial 27.7%. As predicted, the normal seasonal fluctuation in LANXESS's business was absent. Instead, the recovery in demand in the Asia-Pacific region and the faster-than-expected implementation of the Challenge09-12 measures boosted earnings against the previous quarter. The drop in EBITDA compared with the year-earlier period can be partly ascribed to the lower volumes. Selling prices receded to more or less the same degree as procurement costs. Positive effects came from currency changes and, in particular, from flexible asset and cost management in conjunction with the Challenge09-12 program. These measures were implemented to offset the impact of continued capacity underutilization in some production units. Challenge09-12 also proved accretive to earnings in all functional areas. In addition, selling expenses declined by 25.0% to €135 million due to lower freight charges attributable to the drop in volumes. By contrast, research expenses were increased by 4% to €26 million, bearing out LANXESS's claim of developing innovative, customer-specific solutions even in economically challenging times.

The Group's EBITDA for the quarter was held back particularly by the negative development in the business of the Performance Polymers segment, where EBITDA pre exceptionals fell by 40.2%. Earnings in Advanced Intermediates were stable, matching the level of the previous year at €40 million. In the Performance Chemicals segment, EBITDA improved by 3.1% to €67 million although volumes were lower than in the prior-year period.

Despite the difficult business environment, LANXESS posted a Group EBITDA margin pre exceptionals of 10.4%, only just short of the 10.6% achieved in the prior-year period and 1.4 percentage points above the margin of 9.0% for the second quarter of 2009. Flexible asset and cost management in conjunction with the Challenge09-12 program enables us to operate LANXESS' large production facilities profitably even at considerably reduced capacities. The effect of this successful concept is apparent from the way our margins have stabilized.

The operating result (EBIT) amounted to €64 million in the third quarter of 2009, compared with €108 million in the prior-year period. The exceptional charges included in other operating expenses totaled €13 million, all of which impacted EBITDA. They related principally to personnel adjustments in connection with the Challenge09-12 program. The reversal of unutilized provisions for previous restructuring and portfolio adjustments had a partially offsetting effect. Exceptional charges for the same period of the prior year amounted to €12 million, of which €9 million affected EBITDA. These related mainly to restructuring and efficiency enhancement measures at the LANXESS sites in Belgium, Canada, and the United States.

Financial result The financial result for the third quarter of 2009 was minus €32 million, against minus €29 million for the prior-year period. The increase in financial liabilities, attributable largely to the issuance of bonds and promissory notes, increased net interest expense by €12 million. The pro-rated earnings of CURRENTA GmbH & Co. OHG, which is accounted for in the consolidated financial statements using the equity method, amounted to €7 million, against €3 million in the prior-year period.

Income before income taxes Due to the lower operating result, thirdquarter income before income taxes decreased from €79 million to €32 million. The effective tax rate was 28.1%, against 25.3% for the prior-year quarter.

Net income and earnings per share There was no income attributable to non-controlling interests in the third quarter, compared with €3 million in the prior-year period. The LANXESS Group posted third-quarter net income of €23 million, against €56 million for the same period of 2008. With the number of LANXESS shares in circulation unchanged, third-quarter earnings per share decreased from €0.67 to €0.28 because of the lower after-tax income.

BUSINESS TRENDS BY REGION

Sales by Market

	Q3 2 00 8			Q 3 20 09		9M 2 00 8 ge		9M 2 00 9		Ch an ge
	€ mi llio n	%	€ mi llio n	%	%	€ mi llio n	%	€ mi llio n	%	%
(e ) EM EA lud ing G xc er ma ny	57 9	31 .9	40 7	29 .7	(2 7) 9.	1, 72 1	33 .7	1,1 54	31 .5	(3 ) 2.9
Ge rm an y	38 8	21 .4	27 9	20 .3	(2 1) 8.	1, 14 2	22 .3	78 0	21 .3	(3 ) 1.7
No rth A ric me a	28 0	15 .4	20 3	.8 14	(2 ) 7.5	80 7	.8 15	56 9	15 .5	(2 ) 9.5
La tin A ric me a	25 0	13 .8	14 6	10 .6	(4 ) 1.6	52 3	10 .2	34 4	9.4	(3 ) 4.2
As ia- Pa cif ic	31 7	17 .5	33 8	24 .6	6.6	92 1	18 .0	81 8	22 .3	(1 ) 1.2
	1,8 14	10 0. 0	1,3 73	10 0. 0	(2 3) 4.	5, 11 4	10 0. 0	3, 66 5	10 0. 0	(2 3) 8.

In the EMEA region (Europe, Middle East, Africa), excluding Germany, sales fell by 29.7% in the third quarter of 2009 to €407 million. There were no noteworthy effects from currency changes. The decline in operational sales was primarily attributable to the Performance Polymers segment, where revenues shrank by a middouble-digit percentage as a result of the decrease in selling prices induced by lower raw material costs. Business in the Advanced Intermediates segment edged down by a single-digit percentage due to lower sales of pharmaceutical precursors and products for the automotive sector. The Performance Chemicals segment was unable to escape the market trend and posted a sales decline in the low double digits. The largest sales decreases in the region occurred in Western Europe.

With a share of 29.7% of total sales for the third quarter, EMEA (excluding Germany) remains the largest of the LANXESS Group's regions in terms of sales.

In Germany, third-quarter sales of the LANXESS Group fell by 28.1% to €279 million. All operating segments were more or less equally affected by low double-digit shortfalls.

Germany's share of total sales edged down from 21.4% to 20.3%.

Business in the North America region shrank by 27.5% in the third quarter of 2009 to €203 million. After adjusting for minor currency changes and portfolio effects, sales receded by 30.8%. The Performance Polymers segment was hardest hit, with segment sales falling by a mid-double-digit percentage as a consequence of lower prices and volumes.

The North American share of Group sales slipped from 15.4% to 14.8%.

LANXESS registered its largest regional sales decrease for the third quarter of 2009 in Latin America, where business dropped by 41.6%. In this region the Group had sales of €146 million. Adjusted for currency and portfolio changes, the decline in sales was even greater at 46.2%. All major countries in this region and all segments were affected, the largest decline occurring in the Performance Polymers segment.

Latin America's share of Group sales decreased from 13.8% in the prior-year period to 10.6%.

The Asia-Pacific region again proved to be the Group's growth engine in the third quarter, lifting sales by 6.6% against the prior-year period to €338 million. Adjusted for exchange-rate and portfolio effects, sales dipped by just 1.5%. With these figures, Asia-Pacific once more turned out to be very resilient amid persistently difficult market conditions. Business in the Performance Polymers segment especially grew by a high single-digit percentage, while the other segments registered slight sales shortfalls. China in particular provided positive stimulus.

Asia-Pacific's share of Group sales increased accordingly from 17.5% in the third quarter of 2008 to 24.6% in the reporting period, making it once again the Group's second-most important region after EMEA (excluding Germany).

S EG M E N T IN FO R M A T IO N Pe rfo P ol rm an ce ym er s
		Q3 2 00 8		Q 3 20 09	Ch an ge		9M 2 00 8		9M 2 00 9	Ch an ge
	€ mi llio n	M in % arg	€ mi llio n	M in % arg	%	€ mi llio n	M in % arg	€ mi llio n	M in % arg	%
Sa les	93 8		65 6		(3 1) 0.	2, 53 9		1,6 63		(3 ) 4.5
EB IT DA ion als pt p re ex ce	12 7	13 .5	76	11 .6	(4 2) 0.	35 8	14 .1	13 6	8.2	(6 ) 2.0
EB IT DA	12 5	13 .3	66	10 .1	(4 ) 7.2	30 5	12 .0	12 5	7.5	(5 ) 9.0
lt ( IT) Op ati EB ion als pt er ng re su p re ex ce	88	9.4	42	6.4	(5 ) 2.3	26 1	10 .3	37	–	–
lt ( IT) Op ati EB er ng re su	83	8.8	32	4.9	(6 ) 1.4	20 2	8.0	26	–	–
De d a iat ion rti tio pr ec an mo za n	42		34		(1 ) 9.0	10 3		99		(3 .9)
of S Em plo . 3 0 ye es as ep (p 1) iou f D . 3 rev s y ea r: a s o ec	4, 67 2		4,4 58		(4 .6)	4, 67 2		4,4 58		(4 .6)

The Performance Polymers segment recorded a 30.1% decrease in sales in the third quarter of 2009 compared with the prior-year period, to €656 million. Apart from substantial price reductions averaging 26.4%, a 6.7% drop in volumes also factored into this decline. This segment had reached its highest price level in the third quarter of last year. The drop in operational sales was partially offset by positive exchange rate effects of 3.1%.

All of the segment's business units saw substantial falls in selling prices compared with the previous year, in some cases triggered under existing price adjustment agreements by declines in raw material costs. Business in areas closely connected with the tire industry was the most strongly affected. Compared with the second quarter of 2009, selling prices in most business units rose again. The year-on-year decline in volumes was less severe than the drop in prices because volumes in butadiene-intensive business areas returned more or less to 2008 levels. Volumes of technical rubbers nevertheless continued to decline. From a regional viewpoint, the segment showed by far its best development in Asia-Pacific, notably in China.

EBITDA pre exceptionals of the Performance Polymers segment fell by 40.2% to €76 million due to steep price declines in all four of the segment's business units that were not fully offset by lower raw material costs. The efficiency enhancements resulting from the flexible asset and cost management in conjunction with the Challenge09-12 program cushioned the drop in earnings. Compared with the second quarter, earnings were lifted by factors such as pull-forward effects and the related early inventory replenishment by customers following the announcement of price increases. The EBITDA margin for the third quarter came in at 11.6%, against 13.5% a year ago.

The segment's exceptional items related mainly to costs for personnel adjustments under the Challenge09-12 program and to secondary costs for the efficiency enhancement programs launched at the sites in Sarnia, Canada, and Zwijndrecht, Belgium, in early 2008. The total of €10 million in exceptional charges in the third quarter of 2009 did not include any impairment losses. Expenses of €5 million were incurred for these programs in the prior-year period, including €3 million in impairment losses.

Advanced Intermediates

	Q3 2 00 8			Q 3 20 09		9M 2 00 8		9M 2 00 9		Ch an ge
	€ mi llio n	M in % arg	€ mi llio n	M in % arg	%	€ mi llio n	M in % arg	€ mi llio n	M in % arg	%
Sa les	34 4		28 4		(1 ) 7.4	99 3		82 7		(1 ) 6.7
EB IT DA als ion pt p re ex ce	40	.6 11	40	14 .1	0.0	14 5	.6 14	12 4	.0 15	(1 ) 4.5
EB IT DA	40	11 .6	35	12 .3	(1 ) 2.5	14 5	14 .6	11 9	14 .4	(1 ) 7.9
lt ( IT) Op ati EB ion als pt er ng re su p re ex ce	28	8. 1	27	9.5	(3 .6)	11 2	11 .3	89	10 .8	(2 5) 0.
lt ( IT) Op ati EB er ng re su	28	8. 1	22	7.7	(2 ) 1.4	11 2	11 .3	84	10 .2	(2 ) 5.0
De iat ion d a rti tio pr ec an mo za n	12		13		8.3	33		35		6. 1
Em plo of S . 3 0 ye es as ep (p 1) f D iou . 3 rev s y ea r: a s o ec	2, 53 0		2,9 18		15 .3	2,5 30		2,9 18		15 .3

The Advanced Intermediates segment recorded sales of €284 million in the third quarter of 2009, down 17.4% from the prior-year figure of €344 million. The principal reason for the drop in sales was a 12.2% decline in volumes coupled with a 7.6% reduction in selling prices. Positive currency changes of 1.2% had an offsetting effect. The acquisitions of the businesses of Indian company Gwalior Chemical Industries Ltd. and China's Jiangsu Polyols Chemical Co. Ltd. announced in mid-2009 were successfully completed at the beginning of September 2009. Adding the sales of these new specialty chemicals businesses, which were allocated to the Basic Chemicals business unit, gave a portfolio effect of 1.2%.

The agrochemicals sector remained essentially stable in the third quarter in spite of the typical seasonal fluctuations, with slightly divergent trends between the areas of application served by the two business units. Sales of pharmaceutical precursors moved slightly

lower, as did business with the automotive and related industries. The further drop in raw material costs necessitated price reductions in the Basic Chemicals business unit under the respective supply agreements.

EBITDA pre exceptionals of the Advanced Intermediates segment remained flat on the previous year at €40 million. The EBITDA margin rose by a substantial 2.5 percentage points to 14.1%. Price reductions at segment level were offset by lower raw material costs and savings attributable to the Challenge09-12 package of measures. Segment earnings were buoyed by shifts in currency parities and a minor portfolio effect from the successful acquisitions in Asia.

The segment's exceptional items of €5 million in the third quarter of 2009 related to costs incurred in connection with the Challenge09-12 program.

		Q3 2 00 8		Q 3 20 09	Ch an ge		9M 2 00 8		9M 2 00 9	Ch an ge
	€ mi llio n	M in % arg	€ mi llio n	M in % arg	%	€ mi llio n	M in % arg	€ mi llio n	M in % arg	%
Sa les	52 0		42 5		(1 ) 8.3	1, 53 8		1,1 48		(2 ) 5.4
EB IT DA als pt ion p re ex ce	65	12 .5	67	.8 15	3. 1	22 5	.6 14	0 15	13 .1	(3 ) 3.3
EB IT DA	63	12 .1	62	14 .6	(1 .6)	21 9	14 .2	14 5	12 .6	(3 ) 3.8
lt ( IT) Op ati EB ion als pt er ng re su p re ex ce	47	9.0	51	12 .0	8.5	16 9	11 .0	10 1	8.8	(4 2) 0.
lt ( IT) Op ati EB er ng re su	45	8. 7	46	10 .8	2.2	16 2	10 .5	96	8.4	(4 7) 0.
De iat ion d a rti tio pr ec an mo za n	18		16		(1 ) 1.1	57		49		(1 ) 4.0
Em plo of S . 3 0 ye es as ep (p 1) f D iou . 3 rev s y ea r: a s o ec	5, 02 1		4,8 65		(3 .1)	5, 02 1		4,8 65		(3 .1)

Performance Chemicals

The Performance Chemicals segment reported third-quarter sales of €425 million, down 18.3% from the same period a year ago. This decline was the result of a 16.9% drop in volumes and a 3.5% decrease in selling prices, with positive currency changes having an offsetting effect of just 2.1%. None of the segment's business units escaped the year-on-year volume shrinkage, the rubber chemicals businesses being hardest hit. Yet compared with the second quarter of 2009, volumes in most areas of the segment recovered substantially. The segment succeeded in keeping prices at the high prior-year level, with only two business units posting fairly large single-digit percentage decreases.

LANXESS INTERIM REPORT Q3 2009 EBITDA pre exceptionals, at €67 million, was up by €2 million from the prior-year period despite falling prices and volumes. The sys- tematic savings in manufacturing costs and the lower administrative and selling costs achieved through the flexible asset and cost man- agement in conjunction with the Challenge09-12 program proved a highly effective antidote to the negative price and volume effects. Currency changes also cushioned the drop in earnings to some extent. Segment earnings were supported mainly by the activities of the Leather, Inorganic Pigments, and Rhein Chemie business units. The EBITDA margin improved perceptibly from 12.5% to 15.8%.

The exceptional items of €5 million in the third quarter related primarily to costs for personnel-related adjustments resulting from the Challenge09-12 initiative. This figure compares with exceptional charges of €2 million in the second quarter of 2008 related to the closure of the Birmingham, New Jersey, site in the United States operated by the Ion Exchange Resins business unit.

Reconciliation

	Q3 2 00 8	Q 3 20 09	Ch an ge	9M 2 00 8	9M 2 00 9	Ch an ge
	€ mi llio n	€ mi llio n	%	€ mi llio n	€ mi llio n	%
Sa les	12	8	(3 ) 3.3	44	27	(3 6) 8.
EB IT DA als ion pt p re ex ce	(4 0)	(4 0)	0. 0	(9 3)	(8 9)	3 4.
EB IT DA	(4 5)	(3 3)	26 .7	(9 7)	(8 9)	8. 2
lt ( IT) Op ati EB ion als pt er ng re su p re ex ce	(4 3)	(4 3)	0. 0	(1 ) 04	(9 7)	6. 7
lt ( IT) Op ati EB er ng re su	(4 8)	(3 6)	25 .0	(1 ) 07	(1 ) 00	6. 5
De d a iat ion rti tio pr ec an mo za n	3	3	0.0	10	11	10 .0
of S Em plo . 3 0 ye es as ep (p 1) iou f D . 3 rev s y ea r: a s o ec	2, 57 4	2,3 63	(8 .2)	2, 57 4	2,3 63	(8 .2)

The exceptional gains of €7 million in the third quarter of 2009 reported in the Reconciliation segment related to the reversal of unutilized provisions for previous restructuring and portfolio adjustments. The exceptional charges of €5 million in the year-earlier period were incurred in connection with personnel adjustments and other restructuring projects.

FINANCIAL CONDITION

Structure of the statement of financial position As of September 30, 2009, the LANXESS Group had total assets of €5,122 million, up €530 million, or 11.5%, from €4,592 million as of December 31, 2008. The increase was mainly due to the issuance of the €500 million benchmark Eurobond in April 2009 and the acquisitions, effective September 1, 2009, of the businesses and assets of Indian chemical producer Gwalior Chemical Industries Ltd., and Chinesebased Jiangsu Polyols Chemical Co. Ltd. Working capital, however, declined due to the lower demand and strict cash management.

Non-current assets rose by €188 million to €2,357 million. Intangible assets and property, plant and equipment grew by €164 million to €1,955 million, due particularly to currency and acquisition effects. The first-time consolidations as of September 1, 2009 gave rise to goodwill and other intangible assets totaling €28 million. Additions to property, plant and equipment amounted to €225 million, while depreciation and amortization came to €194 million. The decrease in the carrying amount of investments accounted for using the equity method was mainly attributable to the distribution of the pro-rated earnings of CURRENTA GmbH & Co. OHG for 2008. This company's positive earnings in the first nine months of 2009 partially compensated for this effect. The ratio of non-current assets to total assets was 46.0%, down 1.2 percentage points from December 31, 2008.

Current assets grew by €342 million compared with December 31, 2008, to €2,765 million. Inventories were down by a substantial €229 million. The reasons for this decline lay in the lower raw material prices and the resulting effects on inventory valuation, combined with deliberate inventory reductions prompted by muted demand in the current year. Trade receivables rose by €25 million against the end of 2008, due mainly to the increase in business compared with the preceding quarter and to the acquisitions in India and China. There were no material defaults. The €12 million decrease in other current financial assets to €143 million was attributable primarily to the divestment of the financial interest in INEOS ABS (Jersey) Limited after the two-year joint venture phase ended in the third quarter. Income tax receivables dropped by €51 million to €5 million after an earnings-based reduction in the advance tax payments to be made for 2009 and the resulting tax refunds. The total of cash and cash equivalents and near-cash assets rose significantly to €873 million, exceeding the 2008 year-end figure by €624 million, due in particular to the proceeds from the bond issue in April 2009 and the successful implementation of additional liquidity back-up measures. The ratio of current assets to total assets was 54.0%, against 52.8% as of December 31, 2008.

Equity rose by €85 million from December 31, 2008 to €1,424 million. The net income of €26 million for the first nine months and positive currency effects were partially offset by the €42 million dividend payment made by LANXESS AG in May 2009. The ratio of equity to total assets was 27.8% as of September 30, 2009, down from 29.2% on December 31, 2008.

Non-current liabilities grew by €712 million, reaching €2,665 million as of September 30, 2009, mainly on account of the €500 million bond issue in April 2009. An additional bond of €200 million was issued in September 2009, the proceeds of which were used to repay existing financial liabilities early. These two bonds, which mature in 2014 and 2016, respectively, enabled LANXESS to further improve its debt maturity profile. Pension provisions increased due to the adjustment of the discount rates. The ratio of non-current liabilities to total assets was 52.0%, up from 42.5% as of December 31, 2008.

Current liabilities declined by €267 million to €1,033 million. Trade payables fell by €49 million compared with the end of 2008, but increased compared with June 30, 2009 due to the slight upturn in business activity. In addition, short-term liabilities to banks decreased by €40 million. The ratio of current liabilities to total assets was 20.2% as of September 30, 2009, down from 28.3% at year-end 2008.

Liquidity and capital expenditures Despite lower income before income taxes of €33 million for the first nine months of 2009, against €303 million for the corresponding period of 2008, the net operating cash flow rose by €123 million year on year to €432 million, bolstered by a €187 million decline in working capital compared with December 31, 2008. By contrast, the first nine months of the previous year saw a net cash outflow of €236 million for working capital. The trend in 2009 resulted mainly from the drop in demand, lower raw material costs than at the start of the year, and the avoidance of inventory build-up thanks to LANXESS' pro-active asset management.

There was a €651 million net cash outflow from investing activities in the first nine months of 2009, compared with €345 million in the same period a year ago. The increase was predominantly due to the short-term investment of available liquid assets in money market funds. The acquisitions in India and China as of September 1, 2009 led to disbursements of €87 million. Cash outflows for purchases of intangible assets, property, plant and equipment totaled €161 million, €8 million less than in the prior-year period. Depreciation and amortization amounted to €194 million.

LANXESS INTERIM REPORT Q3 2009 Significant investments were made in the Performance Butadiene Rubbers business unit in the Performance Polymers segment to restore the production facility at the Orange, Texas, site in the United States that was damaged by Hurricane Ike. In the Advanced Inter- mediates segment, the Basic Chemicals business unit made capital expenditures to enpand the cresol complex at the Leverkusen site. Without interrupting production, the Saltigo business unit expanded its capacities by optimizing processes and plants and speeding up process-related analytics. Initial disbursements relating to an additional expansion project for which LANXESS receives investment grants were made in the reporting period. Capital expenditures in the Ion Exchange Resins business unit, which is part of the Performance Chemicals segment, related mainly to the construction of a new facility at the site in Jhagadia, India, for ion exchange resins used in water treatment and the production of ultra-pure water. The Butyl Rubber business unit in the Performance Polymers segment made an investment at the site in Zwijndrecht, Belgium involving a finance lease that did not result in a cash outflow.

Net cash provided by financing activities came to €415 million, mainly as a result of the issuance of two bonds in fiscal 2009 with a total volume of €700 million and of promissory notes. Repayments of short and long-term loans and the early repayment of just under €100 million of the €500 million benchmark Eurobond due in 2012 had an offsetting effect. In addition, a €42 million dividend was paid to the shareholders of LANXESS AG in May 2009.

Net Financial Liabilities

€ llio mi n	De 31 c. , 20 08	Se 30 p. , 20 09
fin No cia l li ab ilit ies nt n-c ur re an	98 6	1, 56 7
Cu fin cia l li ab ilit ies nt rre an	16 8	12 8
les s
Lia bil s f d i itie nte t or ac cr ue res	(1 4)	(3 2)
Sp ific ch he dg te ec ex an ge -ra es fo r f ina ial lia bil itie nc s	(2 7)	(1 1)
Ca sh d c h e iva len ts an as qu	(2 ) 49	(4 ) 56
Ne sh ts ar- ca as se	0	(4 ) 17
	86 4	9 77

Cash and cash equivalents rose significantly compared with the end of 2008, increasing by €207 million to €456 million. Net financial liabilities as of September 30, 2009 totaled €779 million and were thus below the €864 million reported as of December 31, 2008. They are stated net of the €11 million (December 31, 2008: €27 million) positive fair value of specific exchange-rate hedges for financial liabilities, which is reflected in the statement of financial position under non-current derivative assets. The €417 million invested in money market funds in the third quarter of 2009 was also deducted when calculating net financial liabilities. These funds, which can be drawn upon on demand, are reported in the statement of financial position as near-cash assets.

SIGNIFICANT OPPORTUNITIES AND RISKS

There have been no significant changes in the opportunities or risks of the LANXESS Group compared with December 31, 2008. For more information, readers are therefore referred to the risk report included in the group management report for the 2008 fiscal year and in the interim group management report as of June 30, 2009.

OUTLOOK

The LANXESS Group achieved a significantly better operating performance in the third quarter of 2009 than in the preceding periods. This was the result of the swift, forward-looking implementation of extensive operational measures and the mutually agreed cuts in employee compensation that also apply to all management levels including the Board of Management. In addition, some of the planned savings from the existing restructuring programs and the flexible asset and cost management concept in conjunction with Challenge09-12 were generated earlier than expected and were already accretive to third-quarter earnings. Another major factor was stronger-than-expected demand from customers toward the end of the reporting period, due partly to a variety of pull-forward effects.

The overall economic environment remains characterized by regional variations. While demand in the Asian countries, particularly China, continues to improve, no uniform signals are coming out of North America so far. LANXESS does not anticipate a rapid rebound in this region's economy.

For the final quarter of 2009, LANXESS expects continued growth in Asia, especially China. In the other regions, the recovery process is predicted to be slow and extend over a long period. Against this background, LANXESS expects a further gradual easing of global economic conditions overall during the rest of the year. This will, however, be counteracted by the seasonal weakening of demand in the fourth quarter that is typical of many of LANXESS's customer industries.

Other negative effects are also anticipated for the fourth quarter. For example, customers brought forward purchases to the third quarter in response to a number of price increases previously announced by LANXESS. Also, as some customers already replenished their inventories in the third quarter of 2009, the company does not anticipate significant further benefit from inventory build-up by customers in the current quarter.

Global chemical industry output for 2009 as a whole will remain well below the prior-year level.

The renewed increase in raw material costs is another factor that could significantly affect Group earnings.

The U.S. dollar, the most important foreign currency for LANXESS, remains highly volatile and has further depreciated against the euro in recent weeks. Given the regional distribution of sales, this trend constitutes another adverse factor.

Against this background, LANXESS now expects EBITDA pre exceptionals of between €400 and €420 million for 2009 as a whole. This guidance takes into account the normal seasonality in the fourth quarter and the above-mentioned pull-forward effects in the third quarter, with a continuing recovery of demand in Asia running counter to these factors.

EVENTS AFTER THE REPORTING PERIOD

Since September 30, 2009, no events of particular significance have occurred that are expected to have a material impact on the financial position or results of operations of the LANXESS Group.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2009

LANXESS GROUP INCOME STATEMENT

€ mi llio n	Q3 2 00 8	Q 3 20 09	9M 2 00 8	9M 2 00 9
Sa les	1,8 14	1,3 73	5, 11 4	3, 66 5
Co of les st sa	(1 9) ,40	(1 ) ,0 50	(3 ) ,9 10	(2 ) ,8 84
Gr fit os s p ro	40 5	32 3	1,2 04	78 1
Se llin g e xp en se s	(1 ) 80	(1 ) 35	(5 ) 09	(3 ) 86
Re ch d d elo t e se ar an ev pm en xp en se s	(2 5)	(2 6)	(7 5)	(7 5)
Ge l a dm ini ati str ne ra on ex pe ns es	(6 9)	(5 7)	(1 ) 95	(1 ) 71
Ot he ing in rat r o pe co me	58	56	34 1	18 1
Ot he ing rat r o pe ex pe ns es	(8 1)	(9 7)	(3 ) 97	(2 ) 24
(E T) Op in lt BI at er g re su	10 8	64	36 9	10 6
e f fo Inc inv ted sin he uit ho d tm ts g t et om ro m es en ac co un r u eq y m	3	7	18	12
Int t in er es co me	3	4	10	14
Int t e er es xp en se	(1 2)	(2 5)	(3 2)	(6 3)
Ot he r f ina ial in d e nc co me an xp en se	(2 3)	(1 8)	(6 2)	(3 6)
Fi ia l r ul t na nc es	(2 9)	(3 2)	(6 6)	(7 3)
In e b ef e i e t co m or nc om ax es	79	32	30 3	33
Inc e t om ax es	(2 0)	(9 )	(8 1)	(7 )
fte In r i e t co m e a nc om ax es	59	23	22 2	26
of wh ich tri bu ble llin g i at ta to tro nte ts no n-c on res	3	0	7	0
(n e) of wh ich tri bu ble L AN XE SS A G ck ho lde inc at ta to sto et rs om	56	23	21 5	26
e ( €) Ea in sh rn gs p er ar	0. 67	0. 28	2. 58	0. 31

2008 fi gures restated

LANXESS GROUP STATEMENT OF FINANCIAL POSITION

€ mi llio n	De 31 , 2 00 8 c.	Se 30 , 2 00 9 p.
AS SE TS
Int gib le ts an as se	14 5	19 2
Pr lan nd uip ty, t a nt op er p eq me	1,6 46	63 1,7
fo Inv ted sin he uit ho d tm ts g t et es en ac co un r u eq y m	42	29
Inv in he ffi lia ted ies tm ts ot es en r a co mp an	2	1
No de riv ati nt ts n-c re ve as se ur	43	33
Ot he fin l a nt cia ets r n on -c ur re an ss	72	87
fe De d t rre ax es	15 4	16 4
Ot he nt ts r n on -c ur re as se	65	88
No nt ts n- cu rre as se	2, 16 9	2, 35 7
Inv rie to en s	1,0 48	81 9
Tr ad eiv ab les e r ec	72 5	75 0
Ca sh d c h e iva len ts an as qu	24 9	45 6
Ne sh ts ar- ca as se	0	41 7
Cu de riv ati nt ts rre ve as se	34	29
Ot fin he cia l a nt ets r c ur re an ss	15 5	14 3
Cu inc iva ble nt e t rre om ax re ce s	56	5
Ot he nt ts r c re as se ur	15 6	14 6
Cu nt ts rre as se	2, 42 3	2, 76 5
To ta l a et ss s	4, 59 2	5, 12 2
EQ UI TY A ND L IA BI LI TI ES
Ca pit al ck d c ita l re sto an ap se rve s	88 9	88 9
Ot he r r es er ve s	76 2	84 2
Ne t in co me	18 3	26
Ot he ity ts r e qu co mp on en	(5 ) 11	(3 ) 49
Eq uit ibu ble llin g i ttr ta to tro nte ts y a no n-c on res	16	16
Eq ui ty	1,3 39	24 1,4
s f fits Pr isi ion nd he loy be ot t-e nt ov on or pe ns s a r p os mp me ne	49 8	57 0
Ot he isi nt r n on -c ur re pr ov on s	26 1	32 8
No de riv ati lia bil itie nt n-c ur re ve s	30	3
Ot he fin cia l li ab ilit ies nt r n on -c ur re an	98 6	67 1,5
No lia bil itie nt tax n-c ur re s	91	92
Ot he lia bil itie nt r n on -c ur re s	46	62
De fe d t rre ax es	41	43
No li ab ili tie nt n- cu rre s	1,9 53	2, 66 5
Ot he isi nt r c ur re ov on s	39 5	32 1
pr Tr ad ab les	48 4	43 5
e p ay Cu de riv ati lia bil itie nt	79	24
rre ve s Ot he fin cia l li ab ilit ies nt	16 8	12 8
r c re an ur Cu lia bil nt inc e t itie	12	23
rre om ax s Ot he lia bil itie nt r c ur re s	16 2	10 2
Cu nt li ab ili tie rre s	1,3 00	1,0 33
To ta l e ity nd li ab ili tie a s	4, 59 2	5, 12 2
qu

2008 fi gures restated

€ mi llio n	Ca l st pi ta	l re Ca pi ta	Ot he r re	t in Ne	Ot he ity r e qu co	nt m po ne s	Eq ui ty ib ab le at tr ut to LA NX ES S AG st kh ol de oc rs	Eq ui ty at ib tr ut - ab le to n on - nt lli co ro ng in te st re s	Eq ui ty
		k oc se rv es se rv	es	co m e	Cu y tra rre nc lat ion ns ad ju stm t en	Fin l cia an ins tru nts me
(a Ja 1, 20 08 fte n. r al lo tio in ed n t ta ca o re ) in ea rn	83	80 6	92 3	0	(3 ) 50	46	1,5 08	17	1,5 25
gs Ch in tin an ac co un			(1 ) 10				(1 ) 10		(1 ) 10
ge g Ja 1, 20 08 af te n. r ch in in nt an ge a cc ou g	83	80 6	81 3	0	(3 ) 50	46	1,3 98	17	1,4 15
Di vid d p nts en ay me			(8 3)				(8 3)	(1 )	(8 4)
To l c eh siv ta om pr en e inc om e			62	21 5	(2 7)	(4 3)	20 7	7	21 4
Ot he ha r c ng es							0	55	55
Se 30 , 2 00 8 p.	83	80 6	79 2	21 5	(3 ) 77	3	22 1,5	78	60 0 1,
De 31 , 2 00 8 c.	83	80 6	84 0	17 1	(4 ) 65	(4 4)	39 1, 1	16	07 1,4
Ch in tin an ge ac co un g			(7 8)	12	(2 )		(6 8)		(6 8)
De 31 , 2 00 8 af te c. r ch in in nt an ge a cc ou g	83	80 6	76 2	18 3	(4 ) 67	(4 4)	1, 32 3	16	1,3 39
Al loc ati to on ain ed ing ret ea rn s			18 3	(1 ) 83			0		0
Di vid d p nts en ay me			(4 2)				(4 2)		(4 2)
To l c eh siv ta om pr en e inc om e			(6 1)	26	94	68	12 7		12 7
Se 30 , 2 00 9 p.	83	80 6	84 2	26	(3 ) 73	24	08 1,4	16	24 1,4

LANXESS GROUP STATEMENT OF COMPREHENSIVE INCOME

€ llio mi n	Q3 2 00 8	Q 3 20 09	9M 2 00 8	9M 2 00 9
In fte r i e t co m e a nc om ax es	59	23	22 2	26
Ac ial ain s/ los nd eil ing ef fec lat ing tu t c ts to ar g se s a as se re de fin ed -b ef lan it p en s	17	(2 6)	91	(8 7)
Ex ch d iffe lat of ide th ion ion n t rat uts an ge re nc es o ra ns o pe s o e e ur o z on e	3	22	(2 7)	94
Fin cia l in str ts an um en	(5 3)	32	(5 6)	94
Inc th he ive in e t om ax es o n o er co mp re ns co me	7	(2 )	(1 6)	0
Ot he eh siv e i f i t o e t r c om pr en nc om e, ne nc om ax	(2 6)	26	(8 )	10 1
To ta l c eh siv e i om pr en nc om e	33	49	21 4	12 7
of wh ich tri bu ble oll ing in at ta to ntr te ts n on -co res	3	0	7	0
of wh ich tri bu ble L AN XE SS A G ck ho lde at ta to sto rs	30	49	20 7	12 7

LANXESS GROUP STATEMENT OF CASH FLOWS

€ mi llio n	9M 2 00 8	9M 2 00 9
In e b ef e i e t co m or nc om ax es	30 3	33
De d a iat ion rti tio pr ec an mo za n	20 3	19 4
Ga of ins n d isp als in ibl d p lan nd uip ta ets rty t a nt o os ng e a ss an ro pe , p eq me	(1 3)	(1 8)
Inc e f inv ted fo sin he uit ho d tm ts g t et om ro m es en ac co un r u eq y m	(1 8)	(1 2)
Fin cia l lo an ss es	56	49
Inc aid /re fu nd ed e t om ax es p	(7 8)	53
Ch s i n i rie to an ge nv en s	(1 ) 80	24 8
Ch s i rad eiv ab les n t an ge e r ec	(1 ) 40	(2 )
Ch s i rad ab les n t an ge e p ay	84	(5 9)
Ch s i th d l iab ilit ies ts an ge n o er as se an	92	(5 4)
Ne h id ed b tin iv iti t c ct as pr ov y o pe ra g a es	30 9	43 2
Ca sh utf low s f ha f in ibl lan nd uip ta ets rty t a nt o or pu rc se s o ng e a ss , p ro pe , p eq me	(1 ) 69	(1 ) 61
Ca sh utf low s f fin l a cia ets o or an ss Ca utf s f f s sh low th uis itio ub sid iar ies d o th bu sin	(6 4)	(4 ) 62
o or e a cq n o an er es se s, les uir ed sh d c h e iva len ts s a cq ca an as qu	(1 ) 73	(8 7)
Ca sh in flo fr les of in ibl lan nd uip ta ets rty t a nt ws om sa ng e a ss , p ro pe , p eq me	20	24
Ca sh in flo fr d ive of bs idi ies d o th bu sin stm ts ws om en su ar an er es se s,
les s d d c h a nd sh ale ive uiv ste nts as ca eq	27	0
Int nd d ivi de nd eiv ed t a er es s r ec	14	35
Ne t c h u d in inv tin ct iv iti as se es g a es	(3 ) 45	(6 ) 51
Pr ds fr b ing oc ee om or row s	40 3	98 1
Re of bo wi ts pa ym en rro ng s	(1 ) 97	(4 ) 81
Int aid d o th fin cia l d isb t p nts er es an er an ur se me	(3 1)	(4 3)
Di vid d p nts en ay me	(8 4)	(4 2)
Ne h id ed b y f in ci iv iti t c ct as pr ov an ng a es	91	41 5
Ch s f in sh nd sh iva le nt bu si ct iv iti an ge ca a ca e qu ro m ne ss a es	55	19 6
Ca sh d c h e iva len of Ja y 1 ts an as qu as nu ar	18 9	24 9
Ot he ha in sh d c h e iva len ts r c ng es ca an as qu	0	11
Ca sh nd sh iva le f S be r 3 0 nt te a ca e qu s a s o ep m	24 4	45 6

2008 fi gures restated

LANXESS INTERIM REPORT Q3 2009 SEGMENT AND REGION DATA KEY DATA BY SEGMENT Third Quarter € million

	Pe rfo rm an	P oly ce me rs	Ad ed In ed iat te va nc rm es
	Q3 2 00 8	Q 3 20 09	Q 3 20 08	Q 3 20 09
Ex al les te rn sa	93 8	65 6	34 4	28 4
Int ale t s er- se gm en s	7	11	14	13
Se t/G les gm en ro up sa	94 5	66 7	35 8	29 7
Se ult /E BIT DA ion als t r pt gm en es p re ex ce	12 7	76	40	40
(% ) EB IT DA gin ion als pt m ar p re ex ce	13 .5	11 .6	11 .6	14 .1
EB IT DA	12 5	66	40	35
EB IT ls tio pr e e xc ep na	88	42	28	27
EB IT	83	32	28	22
Ad dit ion o i ibl lan nd uip s t nta ets rty t a nt ng e a ss , p ro pe , p eq me	37	25	18	18
De iat ion d a rti tio pr ec an mo za n	42	34	12	13

First Nine Months

€ mi llio n	Pe rfo P oly rm an ce me rs		Ad ed In ed iat te va nc rm es
	9M 2 00 8	9M 2 00 9	9M 2 00 8	9M 2 00 9
Ex al les te rn sa	2,5 39	1,6 63	99 3	82 7
Int ale t s er- se gm en s	25	26	49	29
Se t/G les gm en ro up sa	2,5 64	1,6 89	1,0 42	85 6
Se ult /E BIT DA als ion t r pt gm en es p re ex ce	35 8	13 6	14 5	12 4
(% ) EB IT DA als gin ion pt m ar p re ex ce	14 .1	8. 2	.6 14	.0 15
EB IT DA	30 5	12 5	14 5	11 9
EB IT tio ls pr e e xc ep na	26 1	37	11 2	89
EB IT	20 2	26	11 2	84
Ad dit ion o i ibl lan nd uip s t nta ets rty t a nt ng e a ss , p ro pe , p eq me	84	11 9	43	49
De iat ion d a rti tio pr ec an mo za n	10 3	99	33	35
(p 1) of S f D Em plo . 3 0 iou . 3 ye es as ep rev s y ea r: a s o ec	4, 67 2	4,4 58	2,5 30	2,9 18

KEY DATA BY REGION

Third Quarter

€ mi llio n	(e ) EM EA lud ing G xc er ma ny		Ge rm an y
	Q3 2 00 8	Q 3 20 09	Q 3 20 08	Q 3 20 09
Sa les by ke t m ar	57 9	40 7	38 8	27 9
(% ) Pr tio f G les op or n o ro up sa	31 .9	29 .7	21 .4	20 .3

First Nine Months

€ mi llio n	(e ) EM EA lud ing G xc er ma ny		Ge rm an y
	9M 2 00 8	9M 2 00 9	9M 2 00 8	9M 2 00 9
Sa les by ke t m ar	1,7 21	1,1 54	1,1 42	78 0
(% ) Pr tio f G les op or n o ro up sa	33 .7	31 .5	22 .3	21 .3
(p 1) Em plo of S . 3 0 iou f D . 3 ye es as ep rev s y ea r: a s o ec	2, 70 3	2, 66 5	7,7 72	7,6 44

Pe rfo C he mi ls rm an ce ca		Re co nc	ilia tio n	LA NX ES S
Q3 2 00 8	Q 3 20 09	Q 3 20 08	Q 3 20 09	Q 3 20 08	Q 3 20 09
52 0	42 5	12	8	1,8 14	1,3 73
3	2	(2 4)	(2 6)	0	0
52 3	42 7	(1 2)	(1 8)	1, 81 4	1,3 73
65	67	(4 0)	(4 0)	19 2	14 3
12 .5	15 .8			10 .6	10 .4
63	62	(4 5)	(3 3)	18 3	13 0
47	51	(4 3)	(4 3)	12 0	77
45	46	(4 8)	(3 6)	10 8	64
18	19	2	2	75	64
18	16	3	3	75	66

rfo C Pe he mi ls rm an ce ca		Re co nc	ilia tio n	ES S LA NX
9M 2 00 8	9M 2 00 9	9M 2 00 8	9M 2 00 9	9M 2 00 8	9M 2 00 9
1,5 38	1,1 48	44	27	5, 11 4	3, 66 5
6	8	(8 0)	(6 3)	0	0
1,5 44	56 1,1	(3 6)	(3 6)	5, 11 4	3, 66 5
22 5	15 0	(9 3)	(8 9)	63 5	32 1
14 .6	13 .1			12 .4	8. 8
21 9	14 5	(9 7)	(8 9)	57 2	30 0
16 9	10 1	(1 ) 04	(9 7)	43 8	13 0
16 2	96	(1 ) 07	(1 ) 00	36 9	10 6
46	51	7	6	18 0	22 5
57	49	10	11	20 3	19 4
5,0 21	4,8 65	2,5 74	2,3 63	,79 14 7	,60 14 4

No rth A	ric me a	La tin A	ric me a	As ia-	cif Pa ic	LA NX	ES S
Q3	Q	Q	Q	Q	Q	Q	Q
2	3	3	3	3	3	3	3
00	20	20	20	20	20	20	20
8	09	08	09	08	09	08	09
28	20	25	6	31	33	1,8	1,3
0	3	0	14	7	8	14	73
15	.8	13	10	17	24	10	10
.4	14	.8	.6	.5	.6	0.0	0.0

No rth A	ric me a	La tin A ric me a		As ia-	Pa cif ic	LA NX ES S
9M 2 00 8	9M 2 00 9	9M 2 00 8	9M 2 00 9	9M 2 00 8	9M 2 00 9	9M 2 00 8	9M 2 00 9
80 7	56 9	52 3	34 4	92 1	81 8	5, 11 4	3, 66 5
15 .8	15 .5	10 .2	9.4	18 .0	22 .3	10 0.0	10 0.0
1,4 64	1,3 19	1,4 12	1,2 57	1,4 46	1,7 19	14 ,79 7	14 ,60 4

LANXESS INTERIM REPORT Q3 2009 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2009

RECOGNITION AND VALUATION PRINCIPLES

The unaudited, condensed consolidated interim financial statements as of September 30, 2009 were prepared in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB) and the related interpretations of the International Financial Reporting Interpretations Committee (IFRIC), as adopted by the European Union. The standards and interpretations already mandatory as of January 1, 2009 were observed in preparing the interim financial statements.

In compliance with IAS 34, the company opted for a condensed scope of reporting in the interim financial statements compared with the annual financial statements. Reference should be made as appropriate to the notes to the consolidated financial statements as of December 31, 2008, particularly with respect to the recognition and valuation principles applied. Significant changes for periods beginning on or after January 1, 2009 are explained below.

PRESENTATION OF THE FINANCIAL STATEMENTS

Due to the revised version of IAS 1 that entities are required to apply from 2009 forward, a reconciliation of income after taxes to total comprehensive income showing the components of other comprehensive income (statement of comprehensive income) has been prepared in addition to the income statement. The presentation of the statement of changes in equity has also been modified in this connection.

Near-cash assets are reported on the face of the statement of financial position for the first time to enhance the clarity of the Group financial statements. This item includes units of money market funds that can be sold at any time and are expected to be realized within 12 months after the reporting date.

ACCOUNTING FOR PENSION AND OTHER POST-EMPLOY-MENT BENEFIT OBLIGATIONS

Effective January 1, 2009, a change has been made in the accounting treatment of provisions for pension and other post-employment benefit obligations in order to improve the transparency of financial reporting. Actuarial gains and losses in the LANXESS Group are no longer accounted for under the 10% corridor rule. Instead, they are recognized in full outside profit or loss as a component of other comprehensive income in the period in which they occur in compliance with IAS 19.93A. Also effective January 1, 2009, the LANXESS Group is applying the interpretation IFRIC 14, which concerns the asset ceiling and the minimum funding requirements for definedbenefit pension plans.

In compliance with the respective financial reporting standards, the change in the accounting for pension and other post-employment benefit obligations has been applied retroactively. The impact on the relevant items of the statement of financial position as of January 1, 2008 and December 31, 2008 is as follows:

Impact on Statement of Financial Position as of Jan. 1, 2008

€ mi llio n	Ja 1, 20 08 n. (p vi re ou s g) tin ac co un	Ef fe ct fro m ch in an ge tin ac co un g	Ja 1, 20 08 n. (n ew g) tin ac co un
AS SE TS
Inv tm ts es en ted fo sin ac co un r u g th ho d ity et e e m	33	(8 )	25
qu
De fe d t rre ax es	93	21	11 4
Ot he nt r n on -c ur re ts as se	10 2	(7 8)	24
EQ UI TY A ND S LI AB IL IT IE
Ot he r r es er ve s	92 3	(1 ) 10	81 3
Pr isi s f ov on or pe n sio d o th st ns an er po plo t b ef its em ym en en	0 47	65	53 5
De fe d t rre ax es	60	(2 0)	40

Impact on Statement of Financial Position as of Dec. 31, 2008

€ mi llio n	De 31 , 2 00 8 c. (p vi re ou s g) tin ac co un	Ef fe fro ct m ch in an ge tin ac co un g	De 31 , 2 00 8 c. (n ew g) tin ac co un
AS SE TS
Inv tm ts es en ted fo sin ac co un r u g
th ity ho d et e e qu m	49	(7 )	42
De fe d t rre ax es	13 7	17	15 4
Ot he nt r n on -c ur re ts as se	13 4	(6 9)	65
EQ UI TY A ND LI AB IL IT IE S
Ot he es er ve s r r	84 0	(7 8)	76 2
Ne t in co me	17 1	12	18 3
Ot he ity r e qu ts co mp on en	(5 ) 09	(2 )	(5 ) 11
Pr isi s f ov on or pe n sio d o th st ns an er po t b ef its	48 3	15	49 8
plo em ym en en fe De d t rre ax es	47	(6 )	41

This change in accounting increased the operating result (EBIT), income before income taxes and income tax expense previously reported for the third quarter of 2008 by €1 million each and the respective figures previously reported for the first nine months of 2008 by €1 million, €4 million and €1 million. The operating result (EBIT) and financial result for the full year 2008 improved by €1 million and €16 million, respectively, while the accounting for deferred taxes led to tax expense of €5 million.

SCOPE OF CONSOLIDATION

The consolidated financial statements of the LANXESS Group include the parent company LANXESS AG along with all of its material domestic and foreign subsidiaries.

On September 1, 2009, the Indian subsidiary LANXESS India Private Ltd., Thane, acquired the chemical businesses and production facilities of the listed Indian company Gwalior Chemical Industries Ltd. (Gwalior), headquartered in Mumbai. Also effective September 1, 2009, the LANXESS Group purchased the businesses and production facilities of Jiangsu Polyols Chemical Co. Ltd., Liyang, China. The acquisitions were financed mainly out of existing liquidity of the LANXESS Group. These activities, which are allocated to the Advanced Intermediates segment, were included in the consolidated financial statements of the LANXESS Group with effect from September 1, 2009.

Since the date of acquisition, the acquired businesses contributed €4 million to LANXESS Group sales and less than €1 million to net income. Had these businesses already been acquired as of January 1, 2009, they would have contributed approximately €42 million to LANXESS Group sales and about €3 million to net income in the first nine months of 2009.

The acquisitions were accounted for as business combinations according to IFRS 3 (2004). The purchase price allocations reflected the fair values of the identifiable assets, liabilities and contingent liabilities of the acquired companies. The remaining difference of €13 million represents the goodwill acquired with the Gwalior business. Details of the purchase price allocation and the effects of the acquisitions on the LANXESS Group's statement of financial position are given below:

Additions from Acquisitions

€ mi llio n	RS IF in ca g rry nt rio am ou s p r fi im to t-t rs e ol id io at co ns n	Pu ha ric rc se p e al loc io at n	Ca in g rry nt am ou s u po n fir -ti st me co n lid io at so n
Int gib le ts an as se	2	13	15
Pr lan ty, t op er p d e ipm t an qu en	43	3	46
Ot he ets r a ss	15	–	15
To l a ta et ss s	60	16	76
No lia bil itie nt n-c ur re s	–	–	–
Cu lia bil itie nt rre s	2	–	2
To l li ab ili tie ta s	2	–	2
Ne ui d t a cq re (e ts lu di as se xc ng ) od ill go w	58	16	74
Ac isi tio ts qu n c os			87
Ac ire d od ill qu go w (p vi sio l v al ro na u n) at io			13

The purchase price allocation is provisional and was carried out with the aid of reports from external experts and in light of the information available at and immediately after the date of acquisition. According to IFRS the purchase price allocation is subject to adjustment within one year after the acquisition date to reflect new information and findings.

The goodwill remaining after the purchase price allocation is the result of various factors. The goodwill resulting from the acquisition of the Gwalior business reflects advantageous production conditions attaching to the location that cannot be stated as a separate intangible asset, along with synergies arising from the creation of production capacities, product extensions and market potential, especially in the BRIC countries. The acquisition is thus a further step in LANXESS' long-term growth strategy.

The above €87 million cost of acquisition includes external consultancy fees constituting ancillary costs of acquisition.

LANXESS INTERIM REPORT Q3 2009 The new LANXESS company in Russia also was consolidated for the first time in the first nine months of 2009. Through this company LANXESS steers its business in Russia and other countries of the Commonwealth of Independent States (CIS). Neither the first-time consolidation of this company nor two mergers within the Group that took place in the reporting period had a material impact on the LANXESS Group's financial position, results of operations or cash flows. The condensed consolidated interim financial statements of the LANXESS Group as of September 30, 2009 include 61 fully consolidated companies. The 40% stake in CURRENTA GmbH & Co. OHG, Leverkusen, and the 25% stake in Anhui Tongfeng Shengda Chemicals Company Limited, Tongling, China, are accounted for using the equity method.

First-time consolidation of the companies of the Brazilian Petroflex group, now LANXESS Elastômeros do Brasil, S.A., which were acquired in the previous year, was effected as of April 1, 2008. The purchase price allocation undertaken at that time was provisional and was subject to adjustment within one year after the acquisition date to reflect new information and findings. A breakdown of the purchase price allocation and details about the impact of the acquisition on the LANXESS Group's consolidated statement of financial position (at that time referred to as the balance sheet) were provided in the section headed "Companies Consolidated" in the notes to the consolidated financial statements as of December 31, 2008. The figures shown there did not change by March 31, 2009, so the purchase price allocation is final.

DIVIDEND FOR FISCAL 2008

Pursuant to the resolution of the Annual Stockholders' Meeting on May 7, 2009, the sum of €42 million out of the €97 million unappropriated net income reported in the annual financial statements of LANXESS AG as of December 31, 2008 was paid out to the stockholders on May 8, 2009. The dividend amounted to €0.50 per eligible no-par share. The remaining sum of €55 million was carried forward to new account.

EARNINGS PER SHARE

Earnings per share for the third quarters and first-nine-month periods of 2008 and 2009 were calculated on the basis of the number of shares outstanding as of the respective reporting dates. Since there are currently no equity instruments in issue that could dilute earnings per share, basic and diluted earnings per share are identical. For more information about equity instruments that could dilute earnings per share in the future, readers are referred to the notes to the consolidated financial statements as of December 31, 2008.

The change in the accounting treatment of pension and other postemployment benefit obligations did not lead to any changes in the income after income taxes or net income previously reported for the third quarter of 2008. Thus the earnings per share reported for the same period also remained unchanged. As a result of this change in accounting, the income after income taxes and net income previously reported for the first nine months of 2008 each improved by €3 million, to €222 million and €215 million, respectively. The earnings per share reported for this period rose accordingly by €0.04 to €2.58.

Earnings per Share

	Q3 2 00 8	Q 3 20 09	Ch % an ge	9M 2 00 8	9M 2 00 9	Ch % an ge
(€ ) Ne t in illi co me m on	56	23	(5 ) 8.9	21 5	26	(8 ) 7.9
No f o nd sh ing uts ta . o ar es	83 ,20 2, 67 0	83 ,20 2, 67 0	0.0	83 ,20 2, 67 0	83 ,20 2, 67 0	0.0
e ( €) Ea in sh rn gs p er ar	0. 67	0. 28	(5 2) 8.	2. 58	0. 31	(8 0) 8.

NOTES TO THE STATEMENT OF CASH FLOWS

The statement of cash flows for the first nine months of 2009 shows the inflows and outflows of cash and cash equivalents broken down by type of activity. For the sake of clarity, €11 million in receipts constituting investment grants for the construction of facilities for major customers that had been reflected in changes in other assets and liabilities in the first nine months of 2008 was reclassified to investing activities and netted with the cash outflows for purchases of intangible assets, property, plant and equipment.

SEGMENT REPORTING

The segment reporting in the interim report as of September 30, 2009 has been prepared according to IFRS 8. The key difference between IFRS 8 and IAS 14, which was applied for the last time in the consolidated financial statements as of December 31, 2008, is that IFRS 8 follows the so-called management approach. This means that the amount reported for each segment item must be the same as that notified to the company's chief operating decision maker

(CODM). Since the earnings figure used for management accounting purposes within the LANXESS Group is the operating result before depreciation and amortization (EBITDA) pre exceptionals, this is the amount now disclosed as the "segment result." A reconciliation of EBITDA pre exceptionals to income before taxes is also provided. Inter-segment sales are now disclosed not only in the consolidated financial statements for the full year but also in the consolidated interim financial statements.

Reconciliation of Segment Result

€ llio mi n	Q3 2 00 8	Q 3 20 09	9M 2 00 8	9M 2 00 9
To ta l o f s t r ul ts eg m en es	23 2	18 3	72 8	41 0
Ot r/C he lid ati on so on	(4 0)	(4 0)	(9 3)	(8 9)
Ex ion al ite in E BIT DA pt ce ms	(9 )	(1 3)	(6 3)	(2 1)
De d a iat ion rti tio pr ec an mo za n	(7 5)	(6 6)	(2 ) 03	(1 ) 94
Fin l re lt cia an su	(2 9)	(3 2)	(6 6)	(7 3)
In e b ef e i e t co m or nc om ax es	79	32	30 3	33

RELATED PARTIES

In the course of its operations, the LANXESS Group sources materials, inventories and services from a large number of business partners worldwide. These include companies in which LANXESS AG has a direct or indirect interest. Transactions with these companies are carried out on an arm's-length basis.

Transactions in the first nine months of 2009 with associated companies accounted for in the consolidated financial statements using the equity method, or subsidiaries of such companies, mainly comprised the purchase of site services in the fields of utilities, infrastructure and logistics totaling €264 million (9M 2008: €336 million). Trade payables of €54 million existed as of September 30, 2009 (December 31, 2008: €59 million).

No material business transactions were undertaken with other associated companies or individuals. As in the previous year, no loans were granted to members of the Board of Management or the Supervisory Board in the first nine months of 2009.

EMPLOYEES

The LANXESS Group had 14,604 employees worldwide as of September 30, 2009, which was 193 fewer than on December 31, 2008 (14,797). The decrease is predominantly attributable to the continuation of efficiency improvement programs in the United States, Canada, Brazil and Belgium. The first-time inclusion of the employees of the activities of Gwalior in India and Jiangsu Polyols in China, acquired as of September 1, 2009, had a partially offsetting effect.

The number of employees in the EMEA region (excluding Germany) dropped by 38 to 2,665, the increase due to the inclusion of the new LANXESS company in Russia being offset by a decline as a result of the continued restructuring at the sites in Belgium. The number of employees in Germany fell by 128 to 7,644. The number of employees in the North America region dropped to 1,319, from 1,464 as of December 31, 2008, while the number in Latin America fell to 1,257, from 1,412 at the end of last year. The number of LANXESS employees in the Asia-Pacific region rose from 1,446 to 1,719, mainly due to the first-time inclusion of the employees of the newly acquired business in India. On the other hand, nearly 100 employees took early retirement in connection with a site relocation in India. The number of employees in China increased, mainly as a result of the acquisition of the Jiangsu Polyols activities.

FINANCIAL CALENDAR 2010

MARCH 17

Publication of results for fiscal 2009

MAY 11Interim Report Q1 2010

MAY 28 Annual Stockholders' Meeting 2010

AUGUST 6 Interim Report H1 2010

NOVEMBER 10 Interim Report Q3 2010

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MASTHEAD

LANXESS AG 51369 LeverkusenGermany Tel. +49 (0) 214 30 33333 www.lanxess.com

Agency Kirchhoff Consult AG, Hamburg, Germany

Photography Claudia Kempf, Wuppertal, Germany

English edition CURRENTA GmbH & Co. OHGLanguage Service

Printed by Kunst- und Werbedruck, Bad Oeynhausen, Germany

Disclaimer

This publication contains certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, fi nancial position, development or performance of the company to differ materially from the estimations expressed or implied herein. The company does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed herein or the actual occurrence of the forecasted developments. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its parent or subsidiary undertakings nor any of such person's offi cers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

PUBLISHER LANXESS AG51369 LEVERKUSENGERMANYWWW. LANXESS.COM