07/01/2005 - Strong Growth With Higher Profitability

Successful financial statements in 2004

Planning sales increase to €1 billion until 2007 and to €1,2 billion until 2010 with EBIT growing at higher rate than sales

Development mostly by organical growth

Four-pillar strategy will be consistently applied

In the past year, Süd-Chemie Group could significantly increase its sales, its result of operations (EBIT) and its net income and expects that this significant growth will continue in the current fiscal year with the EBIT again growing at a higher rate than sales. “We not only achieved our sales and earnings targets, but thanks to the excellent positioning of our business units in their core markets, we even exceeded them, and significantly increased our profitability”, Dr. Günter von Au, Chairman of the Managing Board, told the shareholders at the Annual General Meeting in Munich today.

In an unrelentingly intense competition, Süd-Chemie Group’s 2004 sales significantly increased by 13% to €862.2 million. With €51 million and €19.8 million, respectively, the result of operations (EBIT) and the net income rose at an even higher rate than sales.

The strong growth of sales in 2004 was primarily the result of the acquisition of the global trading activities with metallurgical additives for the casting industry from SKW Metallurgie AG, Unterneukirchen. Thus, Süd-Chemie completed its product portfolio for the casting industry, and is now the only full-service provider of foundry chemicals for iron casting in Europe.

“The excellent conclusion of this fiscal year confirms the earnings-oriented growth strategy of Süd-Chemie”, Dr. von Au emphasized. Based on the four pillars of this strategy – customer orientation and market penetration, sustained enhancement of the ability to innovate, ongoing process optimizations as well as co-operation agreements and targeted portfolio management – Süd-Chemie is strengthening or expanding its market leadership in each core business unit and in each strongly growing market.

Süd-Chemie has begun the current year very well, and in 2005 will reach sales of €900 million and an EBIT increase by 10% to 20%. According to plan, sales will have been increased to €1 billion by 2007, and to €1.2 billion by 2010 with EBIT growing at a higher rate than sales. The major part of this development of Süd-Chemie will be based on its own strength. Portfolio measures are not considered.

Munich, 1 July 2005

Contact:
Süd-Chemie AG
Corporate Public Relations

Tel.: +49-(0)89-5110-250
Fax: +49-(0)89-5110-302

Süd-Chemie is an independent specialty chemical company headquartered in Munich and operating on a worldwide scale. Key markets served by its Adsorbents Division include the consumer-goods, packaging and foundry industries, as well as the paper and plastics industries. Products manufactured by the Catalysts Division offer solutions for water treatment, petrochemicals processing, energy storage and hydrogen production, as well as off-gas purification. The common denominator of all its products and innovations is the efficient and sparing use of natural resources to enhance the quality of life for humans and the environment. Sales of €862 million were generated in 2004, almost 80% of these outside Germany. Süd-Chemie employs more than 5,100 people at its 62 sales and production sites around the world.