Page 1

S SOLVAY Press release regulated information July 29 , 2021 at 7 a.m. CEST Solvay 2021 first half results Solvay raises full year guidance following double - digit sales and EBITDA growth in Q2 2021 Highlights • Net sales in the second quarter of 2021 were up + 20 % organically versus Q2 2020 and back to 2019 levels in most markets with particularly strong demand in automotive , electronics and building industries . Excluding composites and oil & gas , sales were up + 22 % versus Q2 2020 and up + 6 % Oversus Q2 2019 . Structural cost savings of € 51 million were delivered in Q2 , totaling € 131 million in the first half 2021 , on track to meet the projected annual savings of € 200 million . Underlying EBITDA of € 602 million in Q2 2021 was up + 47 % year on year on a comparable scope and foreign exchange basis , reflecting strong demand and continued cost reductions . First half 2021 EBITDA is 5 % higher than first half 2019 . • EBITDA margin of 24.5 % is 4.3 percentage points higher than Q2 2020 as a result of the higher volumes and structural cost measures , though rising raw material , energy and logistics costs impacted Q2 by approximately € 50 million . • • • Underlying Net Profit was € 276 million in Q2 2021 , more than double the delivery in Q2 2020 . Free Cash Flow was € 135 million in Q2 2021 reflecting the expected seasonal payments of employee bonuses and higher financial charges . Excluding scope and one - time benefits in 2020 , first half 2021 FCF of € 417 million was around 25 % stronger than in H1 2020 . Portfolio simplification continues , with the divestment of six business lines and the completion of a bolt - on acquisition in Agro . Solvay ONE Planet extends the ' better life ' pillar with the launch of Solvay ONE Dignity , which includes nine goals by 2025 to accelerate Diversity , Equity and Inclusion . Second quarter First half Underlying ( in € million ) 2021 2020 2019 % org 21/20 % org % org % org 21/19 2021 Net sales EBITDA 2,456 602 EBITDA margin 24.5 % FCF 135 2,175 439 20.2 % 233 2,654 + 20.4 % 624 + 47.4 % 23.5 % -1.4 % + 3.3 % 4,829 1,185 123 24.5 % 417 33 2020 2019 21/20 4,649 5,225 + 10.5 % 1,008 1,195 + 26.5 % + 5.0 % 21.7 % 22.9 % 435 21/19 -2.3 % FCF conversion ratio ( LTM ) 46.1 % 49.0 % 28.2 % 46.1 % 49.0 % 28.2 % CEO Quote " I'm proud of our team's determination to take full advantage of the robust demand environment as we drive strong top line growth , with June volumes surpassing 2019 levels . Our structural cost actions and pricing initiatives sustained our leading margins in the quarter . Further , our disciplined approach to cash management is contributing to continued deleveraging . As we look ahead , we remain focused on mitigating the inflationary environment , and on reinvesting in our key growth areas including batteries and electronics , which will drive superior growth across the mid - term . " 2021¹ Outlook Full year underlying EBITDA estimate is increased from € 2.0 to € 2.2 billion previously to € 2.2 to € 2.3 billion . Free Cash Flow estimate is increased from € 650 million previously to around € 750 million . Register to the webcast scheduled at 13:00 CEST here Link to financial report - Link to financial calendar 1 Barring additional deterioration related to another wave of Covid - 19 in the second half . Solvay first half year 2021 results - July 29 , 2021 1