Businesses . . . Covestro will focus on start-ups to improve the company's innovation capabilities

under the influence of the new crown pneumonia epidemic, Korth still reached a record 2020 first quarter earnings before interest, taxes, depreciation and amortization (EBITDA) targetAmong them, a quarter Group EBITDA of 254 million euros (-42.5%), in line with financial expectations; net profit fell to 20 million euros (-88.8%); free operating cash flow (FOCF) negative 249 million euros, in line with expectations2- In March, mainly due to the outbreak caused to customers located in China's impact on production, Chinese demand was significantly weaker, down 4.1% of the Group's core business sales in the first quarter year on yearIn addition, competitive pressures resulting in polyurethane and polycarbonate worldwide sales prices, Group sales fell 12.3% to about 2.8 billion eurosIn order to maintain financial flexibility and to ensure liquidity, Korth Chong been a number of financial support"epidemic further exacerbated by global uncertainties." Korth Chong, CEO DrShi Lewen said, "Korth Chong is doing everything, to continue to ensure customer supply in the crisis by absolute customer as the center, strict cost consciousness and a strong team spirit, we are confident to successfully meet this challenge"foreseeable negative impact of the epidemic on the global economy ofbased, Korth founded in mid-April, the annual adjustment financial guidance2020 fiscal year, Korth Chong core business sales growth is expected to be lower than last yearAmong them, the total amount of free cash flow from operations is expected to be negative 200 million to 300 million euros, the rate of return on capital employed (ROCE) would be in a negative 1% ~ 4%, EBITDA is expected at 700 million to 12 billion eurosOn the basis of October 2018 to enhance the efficiency and effectiveness of program start on Korth create additional short-term cost savings target for the fiscal year and then increase from 100 million to 300 million eurosExisting investments will be reduced by about 200 million euros to around 700 million eurosTo further enhance the company's ability to innovate, Korth create expanded strategic partnerships with start-ups in the beginning of the yearBy "Korth Chong risk investment" group in five key technology areas to invest in start-ups, innovation and thereby continue to promote sustainable development, and long-term growth momentum as the core business