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Accounting for pension and otherpost-employment benefit obligations

From January 1, 2013, the LANXESS Group is applying the revised version of IAS 19 that was published in June 2011. The revisions address the recognition and measurement of expenses for defined benefit pension plans and termination benefits. In compliance with the respective financial reporting standards, the change in accounting has been applied retrospectively. There are also changes regarding the information required to be disclosed in the notes to the annual financial statements. Since the option used by the LANXESS Group in accounting for actuarial gains and losses already corresponds to the future mandatory method, application of the revised version of IAS 19 does not significantly impact the financial position or results of operations.

The accounting change has the effect of increasing the provisions for pensions and other post-employment benefits and the other reserves as of December 31, 2012, by €1 million and €5 million, respectively, and diminishing net income for 2012 accordingly. It increases other reserves as of March 31, 2013 and March 31, 2012 by €1 million, with corresponding decreases in the respective first-quarter net incomes. The decline in net income was predominantly due to a higher negative balance of other financial income and expense, taking into account deferred taxes.