In the EMEA region (Europe, Middle East, Africa), excluding Germany, sales were down 7.3% from the previous year, to €2,312 million. Adjusted for portfolio and currency effects, this figure was 3.7% lower. The slight decrease in sales resulted mainly from the conscious decision to forego low-margin business. Sales in the Performance Rubber and Performance Chemicals segments grew, while the other segments saw sales drop. Markets in eastern Europe developed well, while business in Africa and the Middle East remained stable. Sales in France and Belgium in part significantly exceeded prior-year levels, whereas business in the U.K. and Italy did not perform as well as in 2005. The EMEA region (Europe, Middle East, Africa), excluding Germany, accounted for 33.3% of Group sales, compared to 34.9% in 2005.

In Germany, LANXESS sales grew 4.9% from the previous year, to €1,614 million. Adjusted for portfolio measures, sales increased by 8.1%. All segments improved sales substantially due to robust development of the German economy. The Performance Rubber and Engineering Plastics segments posted double-digit percentage growth in sales. Germany’s share of total sales was 23.2%, compared to 21.5% in 2005.

LANXESS sales in the Americas region remained at around last year’s level, adjusted for portfolio and currency effects. After portfolio and currency effects, sales shrank by 7.3% to €1,788 million. The Performance Rubber and Performance Chemicals segments achieved a slight improvement in sales, whereas the Engineering Plastics and Chemical Intermediates segments failed to match prior-year performance. In the United States, adjusted sales remained constant despite slightly weaker economic growth, whereas in Canada, sales were down marginally. Latin America saw sales growth of 3.9%, with Brazil and Mexico contributing particularly to this positive development. The Americas
region accounted for 25.8% of total sales, down from 27.0% in 2005.

Sales in the Asia-Pacific region amounted to €1,230 million in fiscal 2006, up 3.4% from the previous year. Adjusted for currency effects and the business units divested, the increase in sales was 6.3%. All segments performed well, with the Performance Rubber and Engineering Plastics segments reporting above-average growth rates. The drivers of this growth were the Chinese and Indian markets, where substantial double-digit increases in sales were recorded. Business was also especially strong in Hong Kong, Thailand and the Philippines. The withdrawal from agency business in the Chinese market reduced sales there. The Asia-Pacific region’s share of total sales rose from 16.6% to 17.7%.