Slides
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FIRST QUARTER 2025 RESUL TS Earnings call May 8, 2025 CEO Philippe KEHREN CFO Alexandre BLUM
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2 Agenda 01 Introduction Philippe Kerhen 02 Financials Alexandre Blum 03 Outlook Philippe Kerhen 04 Q&A
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This presentation may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties relating to a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals, regulatory approval processes, all-in scenario of R&D projects and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update or revise any forward-looking statements. This document does not constitute an offer to sell, or the solicitation of an offer to subscribe for or buy, any securities. Forenote 3
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INTRODUCTION 01 4 01 Philippe KEHREN
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5 Dedicated Safety team led by a Group Safety director Safety transformation to strengthen safety culture Engagement of all leaders and operational discipline in the plants Supported by external safety culture consultant Safety at the heart of our operations * High severity reportable injury ** Reportable Injury Rate
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Q1 2025 results Resilient EBITDA thanks to diversified portfolio and cost savings €1.1bn €250 m €42 m €1.7bn 17% -6% organic -6% organic 22.3% margin 1.7x leverage 1. To Solvay shareholders from continuing operations uNET SALES uEBITDA FCF1 uNET DEBT ROCE 6
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FINANCIALS 02 7 02 Alexandre BLUM
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8 €-75m (-6%) Volumes down Mainly from soda ash Resilient pricing Q1 underlying Net Sales bridge Negative volume partially offset by pricing Scope Forex conversion Volume & mix Price Q1 2024 Sales Q1 2025 Sales Q1 2024 Sales (constant scope and currency) -6% -7% VS€1,122m in Q1 2025 €1,201m in Q1 2024
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Notice : Charts are used from “insert” option and colors are updated manually. 9 Margin at 22.3% Q1 underlying EBITDA bridge Q1 2024 EBITDA Q1 2025 EBITDA Q1 2024 EBITDA (constant scope and currency) Scope Forex conversion Volume & mix Net pricing OtherFixed costs -6% -6% MARGIN 22.1% MARGIN 22.3%+0.2pp Slightly lower volumes yoy Slightly lower net pricing yoy Fixed costs Savings offsetting inflation Other Accrual Dombasle Energy in Q1’24 VS€250m in Q1 2025 €265m in Q1 2024
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10 Basic Chemicals results Q1 2025 (€m) % YoY % YoY organic Soda Ash & Deriv. 438 -11% -11% Peroxides 233 +5% +3% uNet Sales 672 -6% -7% uEBITDA 162 -20% -20% uEBITDA Margin 24.1% Q1 Highlights Lower sales compared to a high base in Q1 2024. Lower volumes and prices for soda ash. Bicarbonate demand continues to be strong. Consolidation of the Peroxidos do Brasil sales mechanically increased top line. Organically, volumes were up while pricing slightly decreased yoy. Soda Ash & Derivatives Peroxides
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11 Performance Chemicals results Q1 2025 (€m) % YoY % YoY organic Silica 144 -1% -0% Coatis 138 -11% -0% Special Chem 168 -8% -9% Net Sales 450 -7% -4% uEBITDA 94 +18% +20% uEBITDA Margin 21.0% Sales down from lower volumes in tire markets, mostly compensated by higher prices. Sales down from unfavorable BRL/EUR exchange rate. Strong phenol demand but softer performance in solvents. Sales down yoy from lower volumes in autocatalysis, partially offset by higher demand in electronics. Q1 Highlights Silica Coatis Special Chem
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Notice : Charts are used from “insert” option and colors are updated manually. 12 In line with normal seasonality FCF: €42 million in Q1 2025 Capex Working capital Provisions Taxes -27 & other -0 EBITDA Q1 2025 Financing FCF Q1 2025 Working capital At €-46 million Capex Projects started in 2024, continued in 2025
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2024 ➝ Only half a coupon in Q4 ➝ Cautious capex in H1 ➝ Unusual working capital developments FCF seasonality Normalized free cash flow ➝ Working capital: seasonal decrease in Q4 Y-1, mirrored in Q1 Y ➝ Variable remuneration: Q2 cash outflow ➝ Payments of bonds coupons: Q2 and Q4 Free cash flow phasing leads to seasonal fluctuations of net debt 13 Intra year debt fluctuations covered by liquidity reserves and undrawn facilities (about €2 bn in Q1 2025)
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Notice : Charts are used from “insert” option and colors are updated manually. S&P RATING: BBB- Stable outlook Underlying net debt: €1.7 Bn Employee benefits liabilities: €0.7 Bn Environmental liabilities: €0.5 Bn Leverage ratio: 1.7x Others Launch of biomass boilers in Rheinberg: €105 million Capital structure FCF Dividends M&A New Debt/Lease & Others Net Debt 31 Dec 24 Net Debt 31 Mar 25 14
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OUTLOOK 03 15 03 Philippe KEHREN
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Underlying EBITDA Currently in the lower half of the “€1.0 billion and €1.1 billion” range1 Free Cash Flow2 ~€300 million Capex limited to ~€300 million 2025 confirmed 1 should current market conditions and currency exchange rates continue to prevail 2 Free Cash Flow to Solvay shareholders from continuing operations 16
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Q&A 04 17 04