Covestro Prepared to Have Long-Term Profitable Growth, Says CEO

The video discusses Covestro's financial strategies, including maintaining a progressive dividend policy despite declining profits due to increased market competition. It explores the company's growth and acquisition strategies, emphasizing value creation for shareholders. The impact of the automotive industry's trends on Covestro's growth is highlighted, particularly the role of high-tech materials in material substitution. The video also addresses global challenges like Brexit and tariffs, emphasizing Covestro's preparedness and strong client relations.

Why did Covestro decide to raise its dividend despite a drop in profits?

• To attract new investors

• To fulfill a promise to shareholders

• To increase market share

• To counteract falling stock prices

What is the main reason for Covestro's falling profits in 2019?

• Global economic slowdown

• Rising operational costs

• Increased competition and supply side growth

• Decreased demand for high tech materials

How does Covestro plan to achieve growth despite current challenges?

• By expanding into new markets

• By focusing on high-margin areas and potential acquisitions

• By increasing advertising efforts

• By reducing production costs

How does Covestro view the opportunities for acquisitions?

• They plan to acquire as many companies as possible

• They are not interested in acquisitions

• They will only pursue value-creating acquisitions

• They are focusing on small-scale acquisitions only

What is Covestro's position in the automotive industry?

• They are well-positioned to benefit from industry growth

• They are focusing solely on electric vehicles

• They are struggling due to emissions testing issues

• They are planning to exit the automotive sector

What advantage does Covestro have in dealing with supply chain challenges?

• They have a flexible production system in every region

• They produce only in low-cost regions

• They rely on a single global supply chain

• They have exclusive contracts with suppliers

What is Covestro's strategy in the face of Brexit and tariff uncertainties?

• They are increasing their marketing efforts

• They are seeking government assistance

• They are reducing their presence in affected regions

• They are well-prepared to handle these challenges