Slides
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covestro.com Roadshow presentation FY 2025 │ IR Roadshow Presentation Navigating adverse economic climate 0
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covestro.com Covestro investment highlights Group financials FY’25 Segment overview FY 2025 │ IR Roadshow Presentation 1 Background information
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Covestro is diversified across geographies and end-markets FY 2025 │ IR Roadshow Presentation2 Key performance indicators and sales split Notes: Based on Covestro Annual Report 2025; EMLA = Europe, Middle East Africa, Latin America; NA = USA, Canada, Mexico; APAC = Asia-Pacific TPU: Thermoplastic Polyurethanes; ELA: Elastomers Sales split by industry for your convenience only; shown numbers are approximations on full year basis 47%51% 18% 18% 14%14% 6% 31% Performance Materials Solutions & Specialties Sports / leisure, cosmetics, health, diverse industries Chemicals Electrical, electronics & household appliances Construction Furniture & wood Automotive & transportation 2025 sales 41% 25% 34% EMLAAPAC NA -10pp ROCE above WACC 2025 €0.7bn EBITDA 2025 €-0.3bn FOCF 2025 €13bn Sales 2025 Other 2%
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Others 10% 15% Others 61% 8% World-wide industry positions and production capacities Notes: (1) Covestro position based on total nameplate capacity at year end 2025 relative to competitors Source: Covestro estimates 20% Others 42% 22% Others 50% CAPACITY SHARE IN 2023(1) Top 5: 90% Top 5: 87% Top 5: 39% Top 5: 58% Aliphatic isocyanates Polyurethane dispersionsPCPolyether polyolsTDIMDI Top 5: 50%Top 5: 93% 36% Others 7% COVESTRO(1) Global #3 1,780kt 6 sites Global #2 815kt 3 sites Global #3 1,400kt 9 sites Global #1 1,600kt 5 sites Entry requirements • Economies of scope • Formulation and application know-how • Close customer relationships and long-term R&D collaborations • Operation of global business platform KEY MARKETS FY 2025 │ IR Roadshow Presentation3 2030e: Industry structures expected to remain stable 2030e: Top 5 shares expected to remain broadly stable 2030e: Top 5 shares expected to decrease Covestro is a global leader across its entire portfolio Others 13% 23%
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Financial and non-financial ambitions A clear connection to customers and our ambitions Our strategy – setting the path for tomorrow Customer perspective anchored in strategy: You are never more than 10 meters away from a Covestro product Strategy Updated We GROW our attractive sustainable portfolio organically, inorganically and through innovation BECOME CLIMATE NEUTRAL AND FULLY CIRCULAR DRIVE GROWTH SUSTAINABLY BECOME THE BEST OF WHO WE ARE We OPERATE competitively We GROW our attractive, sustainable portfolio organically, inorganically and through innovation We REALIZE our climate targets and our vision to become fully circular ADVANCE AI & DIGITAL TRANSFORMATION STRENGTHEN CULTURE AND BUILD WORKFORCE OF THE FUTURE Be a reliable partner for our customers Grow our product portfolio based on customers needs Develop sustainable solutions for and with our customers IR Roadshow PresentationFY 2025 │ 4 1 Compared to 2023
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Climate neutrality with existing technologies and assets Covestro greenhouse gas emissions 5 Notes: GHG: Greenhouse gas emissions, calculated in accordance with GHG Protocol and WBCSD recommendations for all Covestro sites Indirect emissions from the use of electricity and steam supplied by third parties Indirect emissions from purchased goods, capital goods, fuel- /energy–related activities Indirect emissions from upstream transportation and distribution Indirect emissions from downstream transportation and distribution Indirect emissions Mainly attributable to end-of-life treatment of sold products Indirect emissions from waste of operations, employee commuting, business travel Scope 2 Suppliers, raw materials Transportation Clients, use phase, end of life Transportation Scope 3 Scope 3 Scope 3 UPSTREAM DOWNSTREAM Scope 3 Scope 3 SCOPE 1+2 4.3m tons in 2025SCOPE 3 15.2m tons in 2025Conceptual illustration EXISTING OPTIONS AND CURRENT LIMITATIONS TO REDUCE GHG EMISSIONS Various alternative feedstock Low-emission mobility Renewable energies Low-emission mobility Circular end-of-life solutions Low-emission technology Direct emissions from production plants Scope 1 Low-emission technologies Limitations: available capacities Limitations: available infrastructure Limitations: available capacities Limitations: available infrastructure Limitations: readiness of technologies Limitations: available infrastructure Limitations: investments and installations Selective examples only SCOPE 3 2.3m tons in 2025 FY 2025 │ IR Roadshow Presentation
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Sustainable manufacturing and renewable energy to lead path Climate neutrality target for GHG emissions scope 1 and 2 6 GHG emissions in million metric tons, scope 1 and 2 • Three main levers make a vital contribution to reduce GHG emissions: More sustainable manufacturing (scope 1 and 2) Renewable electricity (scope 2) Renewable steam (scope 2) • Net external effects comprise known future changes in the energy mix of public grids (e.g. nuclear exit in Germany and Belgium) and in public energy allocation schemes (e.g. EEG in Germany) • Roadmap for 2030 interim target based on identified ‘lighthouse projects’ • Further roadmap until 2035 climate neutrality target in preparation based on similar key measures; no negative impact from business growth as future growth investment are required to support climate neutral growth latest by 2030 EMISSION REDUCTION MEASURES Notes: GHG emissions = Greenhouse gas emissions, calculated in accordance with GHG Protocol and WBCSD recommendations Climate neutrality currently includes residual GHG emissions (scope 1 and 2) of c. 0.2-0.3mt per year; we are planning to offset these unavoidable, remaining GHG emissions through adequate compensation measures FY 2025 │ - 60% - 100% IR Roadshow Presentation 2020 Ext. increasing effects 2025 2030 2035 net zero emission reducing ext. effects areas of activity until 2035 0.2 -1.5 -0.4 areas of activity until 2030 emission reducing ext. effects -0.2 5.6 2.2 -0.5 -0.4 -1.1 -0.6 -0.9 -0.7
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Numerous measures effectively reduce GHG emissions Climate neutrality target for GHG emissions scope 1 and 2 7 Employing digital technologies for efficient production control Optimizing production processes to increase energy efficiency APAC: Solar&wind electricity PPAs for ~30% of Chinese operations with Datang Power & CGN New Energy NA: Virtual PPA with Ørsted for solar electricity starting late 2024 for 12% of Baytown’s electricity Develop options to use e.g. biogas or green hydrogen as energy source to generate steam Develop options to electrify steam generation based on renewable energies Reducing nitrous oxide emissions by installation of highly efficient catalysts EMLA(1): Renewable electricity PPA with RWE for 45% of site’s power in Antwerp, with Ørsted for 10% of sites’ electricity in Germany and with BP for 50% of Spanish operations Converting steam generation from fossil to renewable energy sources MORE SUSTAINABLE MANUFACTURING RENEWABLE ELECTRICITY RENEWABLE STEAM FY 2025 │ IR Roadshow Presentation Notes: PPA: Power purchase agreement Datang: Datang Wuzhong New Energy Co. CGN: China General Nuclear New Energy (1) renewable energy PPA with RWE from 2026, PPA with Ørsted and RWE for offshore wind energy from 2026
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Continuously improving global renewable electricity footprint 8 Additional PPAs contributing to accelerated electricity transformation in 2026 RENEWABLE ELECTRCITY SUPPLY PPAs with major players for solar and wind energy supplying: Significant supply of renewable electricity globally NA APAC EMLA 45% 10% of Antwerp site electricity demand of German sites electricity demand PPAs with CGN and Datang for solar and wind energy supplying: 30% of electricity for Chinese sites Virtual PPA with Ørsted for solar power supplying: 12% of electricity for US sites FY 2025 │ IR Roadshow Presentation Notes: PPA: Power purchase agreement CGN: China General Nuclear New Energy 20% 50% of Spanish sites electricity demand Well on track to our intermediate target of 60% GHG reduction until 2030 ELECTRICITY TRANSFORMATION PROGRESS Target level GWh // +10% 12% 16% 16% 20% 27% 0% 20% 40% 60% 80% 0 2500 5000 2021 2022 2023 2024 2025 2026e 2030e
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Target reduction of 10m tons GHG until 2035 and net-zero until 2050 9 Climate neutrality target for GHG emissions scope 3 Notes: GHG emissions = Greenhouse gas emissions, calculated in accordance with GHG Protocol and WBCSD recommendations MAKE = Covestro internal sustainable raw material sources (1) Raw materials (part of category 3.1), End of Life (EoL) Treatment (category 3.12), Fuel and energy related (category 3.3), Upstream transportation (category 3.4) GHG emissions in million metric tons, scope 3 - categories 1, 3, 4, 12(1) • Four main levers make a vital contribution to reduce scope 3 GHG emissions: Supplier scope 1&2 reduction Advancing MAKE projects Profitable sales of products based on alternative raw materials Other measures • Contribution of different levers can vary depending on technical realization of MAKE projects • Scope 3 emissions represent ~80% of Covestro’s 2024 greenhouse gas emissions • Strict commitment to net-zero underlines consistent implementation of the green transformation • Net-zero 2050 target in line with SBTi and 1.5° goal EMISSION REDUCTION MEASURES FY 2025 │ - 30% or -10.0 mio tons - 100% 2021 Covestro growth net zero 2050 2035 21.3 Net reduction 3.6 -14.9 Supplier S1&S2 potential -5.7 CE alt. RM products -1.9 Make projects -1.3 futher actions -1 IR Roadshow Presentation
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Strategic levers supporting transformation towards climate neutrality 10 Target for GHG emissions scope 3 Notes: MAKE = Covestro internal sustainable raw material sources Develop strategy on CO2 reduced top raw materials FOCUS ON SUPPLIERS Broaden engagement with suppliers that achieve scope 1&2 reductions Identify first mover supplier ADVANCING MAKE PROJECTS Execute investments according to strategy- based asset planning Continue innovation & digital R&D in renewable technologies Prove technical feasibility of own technologies Identify first mover customers to deliver climate neutral products Secure access to strategic waste feedstock Enhance value proposition & active customer engagement Increased recycling quota OTHER MEASURES Green logistics initiatives Primary energy generation FOCUS ON CUSTOMERS FY 2025 │ IR Roadshow Presentation
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Re-shaping the PU value chain for soft foams into a closed loop FY 2025 │ 11 Notes: LCA: Life cycle assessment (1) Commercial plant in early planning • Chemical recycling of polyurethane (PU) mattress foams, turning waste into valuable resources • Proprietary process for recycling both PU components polyol and TDA (precursor for TDI), enabling 100% recycling of these components for soft foam • New brand label to support our customers to quicky identify circular solutions Evocycle® CQ Mattress - the straight path to circular • Significant improvement of CO2 footprint compared to fossil route (LCA), meeting high customer and consumer demand • Intelligent sorting solution to efficiently separate different PU foams from post-consumer mattresses COVESTRO TECHNOLOGY Conceptual illustration Technology and IP 2019 2021 2023 H2 2020s Technology optimization Technology industrialization(1) Pilot Plant 2030s Lab-scale customer samples Cooperation on innovative recycling of plastic waste FUTURE PU SOFT FOAM LOOP Timeline: Innovative recycling / joint solutions Intelligent Sorter Chem ical Recycler End Consum er M attress Producer Mattress Collector & H andler Foam Producer Technology and IP Further scale-up subject to demand and technology IR Roadshow Presentation
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12 Notes: (1) As of January 2026 (2) GDP estimate by Oxford Economics as of Jan. 2026; automotive estimate by GD as of Jan. 2026; Construction estimate by B+L as of Nov. 2025; Furniture estimate by CSIL as of Nov. 2025; EE&A estimate by Oxford Economics as of Dec. 2025 (sub -industry ‘appliances’ mainly include refrigerators and freezers) Global GDP Automotive Construction Furniture Electrical, electronics and household appliances EV / BEV Residential Soft furniture Appliances +3.0% +3.3% +29.4% +0.2% -2.0% -0.8% +0.1% +1.3% +1.0% +2.8% +1.8% +16.6% +2.5% +1.8% +0.2% +1.5% +6.2% +3.7% +2.8% -0.6% +8.1% -2.4% -5.3% -0.5% -0.2% +3.7% +5.0% KEY CUSTOMER INDUSTRIES 2026e(2)2024 Y/Y(1) 2025 Y/Y(1) FY 2025 │ IR Roadshow Presentation Global demand development Core industry outlook indicating modest growth
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13 FY 2025 GUIDANCE FY 2026 EBITDA €740m around 2025 level(5) FOCF €-283m significantly improved vs 2025 level(5) ROCE above WACC(1) -10.2pp significantly improved vs 2025 level(5) GHG emissions (scope 1 and 2)(2) 4.3m tons 3.9 to 4.5m tons Additional financial expectations D&A €1087m ~€850m Capex(4) €770m ~€800m Notes: (1) Weighted average cost of capital (WACC): 7.3% in FY 2025, 6.8% in FY 2026e (2) GHG emissions of all sites, bonus relevant 2025 KPI 4.3mio tons for Covestro’s 16 major sites (3) Q1 2025 negative contribution from closure of PO JV with LYB (LyondellBasell) within BE PM (4) Cash-relevant Capex (5) around: single-digit % deviation / significantly: double-digit % deviation Mark-to-market (M2M): • Mark-to-market (M2M) EBITDA FY 2026 around €0.8bn; theoretical calculation based on Jan 2026 margins flat forward and forecast assumptions for 2026 2026 FX assumptions • CNY/EUR around 8.20 • USD/EUR around 1.20 HIGHLIGHTS FY 2025 │ IR Roadshow Presentation Full year guidance 2025 Challenging economic environment continuing
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STRONG transformation in progress Transformation program STRONG TARGETS FOR COST MEASURES 2024-2028E HIGHLIGHTS • STRONG was launched in June 2024 to shape Covestro for sustainable competitiveness o Effective structures and efficient processes with a strong customer focus o Broad implementation of AI solutions • STRONG to achieve €400 million annual savings by 2028 (slightly below 10% of fixed costs); achieved by 2025 ~€275m • Benefits from propylene oxide site closure expected to contribute from 2026 onwards • STRONG requires cumulative restructuring and implementation costs of around €300 million; 2024 and 2025 ~€250 have been spent so far 400 Mio. € Cost Savings p.a. in € millions ~120 Mio. € ~275 Mio. € Cumulative costs in € millions ~300 Mio. € ~50 Mio. € ~250 Mio. € target delivered target ambition FY 2025 │ IR Roadshow Presentation14 2024 2025 2028e
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Significant investments into growth Group capex and D&A in € million HISTORIC AND PROJECTION • Growth capex of around €3.5bn from 2015 to 2025 • D&A 2025 included impairment write-off of €226m • Planned investments in Circular Economy projects of almost €1bn between 2021 and 2030 Capex = D&A HIGHLIGHTS Impairment write-off FY 2025 │ IR Roadshow Presentation15 509 419 518 707 910 704 764 832 765 781 770 ~800 739 683 627 620 752 776 823 1350 894 984 1087 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026e Capex D&A Capex per D&A ~850
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Dividend based on net income payout ratio Dividend development 35% 55% Dividend of Covestro AG Net income • Net income determining factor for the dividend • Committed to a payout ratio of 35% to 55%, related to dividend over net income o Higher payout intended in years with peak earnings, while ratio towards lower end o Lower payout intended in years with trough earnings, while ratio towards upper end • For FY 2022-2025, dividend suspension, in line with policy due to negative net income 1.30 € Dividend per share in € HIGHLIGHTS Payout ratio 03.40 00 2020 2021 2022 2023 2024 251 651 0 0 0 459 1616 -272 -198 -266 2025 0 -644 55% 40% FY 2025 │ IR Roadshow Presentation16 0
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Ongoing shift to high-margin business Portfolio management Notes: (1) Covestro with 51% joint venture share Listed transactions with materiality; all sales and EBITDA refer to the last fiscal year prior to closing IRR: Internal rate of return DIVESTMENTS Dubai system house(1) July 2021 Europe Polycarbonates sheets business September 2019 Europe system houses June 2019 USA Polycarbonates sheets business August 2018 NA Polyurethanes spray foam business April 2017 Business divested at average EV/EBITDA >20x Portfolio analysis ongoing, further minor divestments possible DSM Resins & Functional Materials business April 2021 Highly complementary business acquired at EV/EBITDA(2) of 6x Further pursue value-enhancing bolt-on acquisition options with attractive IRR for Solutions & Specialties segment ACQUISITIONS Sales EBITDA ~650 ~155 ~125 Sales EBITDA ~10 ~960 ~280 in € millionCumulated, in € million Closing Additive Manufacturing business April 2023 FY 2025 │ IR Roadshow Presentation17 Pontacol expansion in Specialty Films August 2025
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18 Negative volume development burdened by Dormagen fire incident and ongoing challenging economic conditions FY 2026 guidance with an expected EBITDA around(1) 2025 level XRG strategic partnership successfully started on December 10th Sales lower at €12.9bn mainly caused by lower prices and unfavorable FX EBITDA of €740m within guidance range impacted by continuous margin pressure helped by delivering on cost savings ambitions FY 2025 Highlights Notes: (1) around: single-digit % deviation FY 2025 │ IR Roadshow Presentation Navigating adverse economic climate
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covestro.com Covestro investment highlights Group financials FY’25 Segment overview FY 2025 │ IR Roadshow Presentation 19 Segment overview Background information
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20 in € million / margin in percent in € million / changes Y/YSALES EBITDA AND MARGIN Unprecedented margin pressure weighing on EBITDA Group results – Highlights Q4 2025 3,510 3,690 3,603 3,376 3,477 3,379 3,171 2,915 -6.2% -0.8% 1.0% 0.9% -0.9% -8.4% -12.0% -13.7% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Sales Sales growth Y/Y EBITDA EBITDA Margin Notes: (1) Q1 2025 negative contribution from closure of PO JV with LYB (LyondellBasell) within Business Entity Performance Materials (1) • Year-over-year, declining sales (-13.7%) with negative pricing (-7.8%), FX (-4.6%) and also lower volumes (-1.3%) • Quarter-over-quarter, sales globally declined driven by lower volumes and pricing, while stable FX HIGHLIGHTS Q4 2025 • Year-over-year, lower EBITDA due to negative contributions from pricing delta and FX while positive volumes and other items • Sequentially, earnings decreased driven by negative volumes, other items and pricing delta while positive FX • EBITDA margin decreased to 3.1% in Q4 2025 HIGHLIGHTS Q4 2025 273 320 287 191 137 270 242 91 7.8% 8.7% 8.0% 5.7% 3.9% 8.0% 7.6% 3.1% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 │ IR Roadshow Presentation
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21 Image is not correctly inserted into the shape? Right click & "Reset Slide" „Insert Image“ Options: a) Click the image icon within the placeholder b) insert the image by dragging it in c) Ribbon „Insert“ → Pictures Flat volumes despite difficult economic environment FY 2025 – Regional Split China €2,956m U.S. €2,885m Germany €1,413m NA €3,378m Volume +4.0% EMLA €5,181m Volume -5.5% APAC €4,383m Volume +1.2% GLOBAL €12,942m Volume -0.9% Sales Volume Y/Y HIGHLIGHTS • Year-on-year development by industries: ̶ Auto flat development ̶ Furniture/wood low single-digit % decline ̶ Electro mid-single-digit % decline ̶ Construction low single-digit % increase • EMLA: Ongoing demand weakness in electro, construction and auto, each with slight decline; positive development in furniture with slight increase despite Dormagen TDI production limitation • NA: Auto with slight decline, while construction and electro with slight increase, furniture with significant growth • APAC: Construction with significant increase, auto with slight increase while export-oriented industries electro and furniture with significant declineFY 2025 │ IR Roadshow Presentation
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22 Volume negative • Volume decrease of 0.9% Y/Y Pricing negative • Pricing affected sales by -5.2% • Performance Materials strongly affected (-6.7% Y/Y) whereas Solutions & Specialties declined less (-3.8% Y/Y) FX negative • FX affected sales by -2.6% Y/Y mainly driven by RMB, USD, MXP and INR FY 2025 – Sales bridge Lower sales mainly caused by lower prices and FX in € million -8.7% FY 2024 Volume Price FX FY 2025 12,942 -375 -125 14,179 -737 HIGHLIGHTS FY 2025 │ IR Roadshow Presentation
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23 Positive volume • Volume increase of 6.8% Y/Y due to mix effects Negative pricing delta • Strong margin decline due to unfavorable supply -demand situation Other items • €51m lower income from 2024 insurance reimbursement for the Dormagen chlorine event • Lower provisions for short - and long-term variable compensation of €106m • In FY 2025, €200m restructuring cost associated with transformation program STRONG FY 2025 – EBITDA bridge EBITDA mainly burdened by negative pricing delta in € million HIGHLIGHTS -419 Pricing delta -30.9% FY 2024 Volume Price Raw material price FX Other items FY 2025 1,071 73 -738 319 -34 49 740 FY 2025 │ IR Roadshow Presentation
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24 Image is not correctly inserted into the shape? Right click & "Reset Slide" „Insert Image“ Options: a) Click the image icon within the placeholder b) insert the image by dragging it in c) Ribbon „Insert“ → Pictures Positive volumes in APAC and NA Q4 2025 – Regional Split China €741m U.S. €641m Germany €286m NA €750m Volume +3.9% EMLA €1,093 Volume -8.6% APAC €1,072m Volume +3.4% GLOBAL €2,915m Volume -1.3% Sales Volume Y/Y HIGHLIGHTS • Year-on-year development by industries: ̶ Auto low single-digit % increase ̶ Furniture/wood low single-digit % increase ̶ Electro low single-digit % decline ̶ Construction low single-digit % increase • EMLA: Ongoing demand weakness in electro, flat development in auto, while positive development in construction and furniture with slight increase despite Dormagen TDI production limitations after fire incident • NA: Auto with slight decline, construction flat while electro and furniture with significant growth • APAC: Construction with significant increase, auto with slight increase while export-oriented industries with slight decline in electro and significant decline in furniture FY 2025 │ IR Roadshow Presentation
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25 Volume negative • Volume decrease of 1.3% Y/Y Pricing negative • Pricing affected sales by -7.8% • Performance Materials more strongly affected ( -10.9% Y/Y) whereas Solutions & Specialties with lower decline ( -5.0% Y/Y) FX negative • FX affected sales by -4.6% Y/Y mainly driven by USD, RMB and INR Q4 2025 – Sales bridge Sales mainly burdened by lower prices and FX in € million -13.7% FY 2024 Volume Price FX FY 2025 2,915 -152 -42 3,377 -268 HIGHLIGHTS FY 2025 │ IR Roadshow Presentation
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26 Positive volume • Volume increase of 18.8% Y/Y due to mix effects Negative pricing delta • Strong margin decline due to unfavorable supply -demand situation Other items • €54m lower income from Q4 2024 insurance reimbursement for the Chlorine production event • Lower provisions for short - and long-term variable compensation of €45m Q4 2025 – EBITDA bridge EBITDA mainly burdened by negative pricing delta in € million HIGHLIGHTS -144 Pricing delta -52.4% Q4 2024 Volume Price Raw material price FX Other items Q4 2025 191 -269 125 -14 22 91 36 FY 2025 │ IR Roadshow Presentation
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27 Historical FOCF development Negative FOCF due to lower EBITDA ≥900(b) in € million EBITDA +1,472 +3,085 +1,617 +1,080 +1,071 +740 Changes in working capital(1) -100(3) -727 +312 +250 +43 +70 Capex(2) -704 -764 -832 -765 -781 -770 Income tax paid -155 -546 -538 -383 -219 -192 Other effects(3) +17 +381 -421 +50 -25 -131 1,429 232 89138 FY 2025FY 2024FY 2023FY 2022FY 2021 -283 FY 2020 530 • Q4 2025 FOCF of €87m • FY 2025 FOCF decline Y/Y driven by lower EBITDA • Working capital to sales ratio(4) stable at 16.8% (FY 2024: 16.9%), eliminating effect of lower sales and lower working capital at year-end • FY 2025 capex of €770m in-line with the guidance of €700-800m • FY 2025 income taxes impacted by geographical earnings mix • “Other effects” including bonus payment for FY2024 in Q2 2025 HIGHLIGHTS Notes: (1) Working capital includes changes in inventories, trade accounts receivable and trade accounts payable (2) Cash-relevant capex (3) Restated for fiscal year 2019-2020 for the change in presentation for rebates granted to customers, affecting trade and other li abilities (4) Method of calculation: Working Capital on December 31, 2025, divided by sales of last four quarters FY 2025 │ IR Roadshow Presentation
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28 December 31, 2025 – Total net debt Total net debt decrease through capital increase in € million 1,1951,195 (1) • Total net debt / EBITDA ratio(2) of 2.5x at the end of FY 2025 compared to 2.7x at the end of FY 2024 • Capital increase of €1.17bn representing 10% of registered capital fully awarded to XRG as agreed in the ADNOC-Covestro investment agreement • No financial covenants in place • Committed to a solid investment grade rating; Baa2 with stable outlook confirmed by Moody’s on April 28, 2025 HIGHLIGHTS Notes: (1) As difference of pension provisions and net defined benefit assets (2) Method of calculation: Total net debt divided by EBITDA of last four quarters Dec 31, 2024 FOCF Net interest Other Net pension liability 2,933 283 92 -231 1,8802,618 1,796 315 84 Dec 31, 2025 Net financial debt Net pension liability -25 Capital increase -1,172 FY 2025 │ IR Roadshow Presentation
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29 Challenging economic environment continuing Full year guidance 2025 FY 2025 GUIDANCE FY 2026 EBITDA €740m around 2025 level(5) FOCF €-283m significantly improved vs 2025 level(5) ROCE above WACC(1) -10.2pp significantly improved vs 2025 level(5) GHG emissions (scope 1 and 2)(2) 4.3m tons 3.9 to 4.5m tons Additional financial expectations D&A €1087m ~€850m Capex(4) €770m ~€800m Notes: (1) Weighted average cost of capital (WACC): 7.3% in FY 2025, 6.8% in FY 2026e (2) GHG emissions of all sites, bonus relevant 2025 KPI 4.3mio tons for Covestro’s 16 major sites (3) Q1 2025 negative contribution from closure of PO JV with LYB (LyondellBasell) within BE PM (4) Cash-relevant Capex (5) around: single-digit % deviation / significantly: double-digit % deviation Mark-to-market (M2M): • Mark-to-market (M2M) EBITDA FY 2026 around €0.8bn; theoretical calculation based on Jan 2026 margins flat forward and forecast assumptions for 2026 2026 FX assumptions • CNY/EUR around 8.20 • USD/EUR around 1.20 HIGHLIGHTS FY 2025 │ IR Roadshow Presentation
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covestro.com Covestro investment highlights Group financials FY’25 FY 2025 │ IR Roadshow Presentation 30 Segment overview Background information
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Differentiation based on customer proximity and innovation 31 Solutions & Specialties BENEFITS FOR GROUP • Maintain leadership in differentiated niche applications • Implement growth strategy while building on vision of full circularity • Improve earnings margin Implement a pull supply chain Use deep customer understanding to deliver unique value to customers Manage complexity Efficiently steer customers and products at a small scale and balance cost of each solution against value for the customer SUCCESS FACTORS Lead in innovation Continuously innovate products and applications in order to maximize value proposition to customers FY 2025 │ IR Roadshow Presentation Differentiated polymer products PRODUCTS SALES 2025 (in € million) Engineering Plastics 2,688 Coatings & Adhesives 2,359 Tailored Urethanes 687 Thermoplastic Polyurethanes 346 Thermoplastic … Elastomers 203 Customer centricity for solutions and specialty products
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32 Solutions & Specialties – Volume rebound at low price levels Segment results – Highlights Q4 2025 Sales Sales growth Y/Y EBITDA EBITDA Margin in € million / margin in percent in € million / changes Y/Y 1,767 1,810 1,773 1,654 1,745 1,713 1,637 1,526 -6.2% -3.3% -2.0% -2.9% -1.2% -5.4% -7.7% -7.7% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 • Sales declined by 7.7% Y/Y , equally driven by FX (-5.1%) and prices (-5.0%) while higher volumes (+2.4%) • Quarter-over-quarter, sales seasonally declined; volumes declines in EMLA and NA while stable in APAC; prices dropped in APAC and EMLA while stable in NA. HIGHLIGHTS Q4 2025SALESSALES • Compared to prior year, EBITDA declined due to negative pricing delta and FX despite positive volume effect • Quarter-over-quarter, lower EBITDA due to negative volumes and pricing delta while positive FX • EBITDA margin decreased to 8.5% in Q4 2025 HIGHLIGHTS Q4 2025EBITDA AND MARGIN 208 174 208 150 181 175 196 129 11.8% 9.6% 11.7% 9.1% 10.4% 10.2% 12.0% 8.5% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 │ IR Roadshow Presentation
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Standard products with reliable supply and lowest cost 33 Performance Materials Polyurethane and polycarbonate standard products as well as basic chemicals BENEFITS FOR GROUP • Maintain leadership in Covestro core industries • Implement growth strategy while building on vision of full circularity • Create critical mass for Covestro in standard product offerings • Supply downstream Business Entities at market-based prices PRODUCTS Ensure high asset utilization Integrated end-2-end planning and steering of entire supply chain and large- scale production to optimize output SUCCESS FACTORS SALES 2025 (in € million) Supply customers reliably to be customers’ preferred supplier Strengthen superior cost position Standardized offerings and lean order management for focused customer and product portfolio FY 2025 │ IR Roadshow Presentation Customer centricity for standard productssMDI 2,611 sTDI 1,078 sPolyols 1,119 sPoly- carbonates 723 Basic Chemicals 597
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34 in € million / margin in percent in € million / changes Y/Y • Sales declined (-19.5%) Y/Y , driven by lower prices (-10.9%), volumes (-4.6%) and FX (-4.0%) • Quarter-over-quarter, sales globally declined, with negative volumes and lower prices in all regions HIGHLIGHTS Q4 2025SALES HIGHLIGHTS Q4 2025EBITDA AND MARGIN Performance Materials – EBITDA burdened by margin pressure Segment results – Highlights Q4 2025 Notes: (1) Q4 2024 positive contribution of €55m from insurance reimbursement for the chlorine production event in Dormagen (2) Q1 2025 negative contribution of €88m from closure of PO JV with LYB (LyondellBasell) (3) Q3 2025 positive contribution of €75m from internal insurance reimbursement for the fire event in Dormagen, respective co unter-effect in segment “Others/Consolidation”, neutral effect on group level Sales Sales growth Y/Y EBITDA EBITDA Margin 1,689 1,834 1,777 1,670 1,677 1,618 1,489 1,344 -5.7% 2.5% 4.1% 5.2% -0.7% -11.8% -16.2% -19.5% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 (2)(1) (3) • Compared to prior year, EBITDA burdened by negative pricing delta, other items and FX while positive volumes • Quarter-over-quarter, lower EBITDA driven by negative pricing delta and volumes, negative other items due to internal insurance payment of €75m in Q3 2025(3) • EBITDA margin decreased to 2.9% in Q4 2025 103 196 125 145 13 149 174 39 6.1% 10.7% 7.0% 8.7% 0.8% 9.2% 11.7% 2.9% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 │ IR Roadshow Presentation
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MDI market moving to balance 35 Performance Materials: MDI industry demand and supply Notes: (1) Assumes global GDP CAGR 2025 - 2030e of ~2% (2) Based on historical and announced future nameplate capacities Source: Covestro estimates MDI DEMAND DEVELOPMENT (2020- 2030e) in kt(1) % growth as CAGR HIGHLIGHTS • In 2025, Industry Utilization Rate of 81%, burdened by weak demand; industry usually fully utilized in the low nineties • Demand CAGR of 4-5% between 2025 and 2030e along with demand recovery path 6% HIGH 3% LOW~4% 4-5% BASE FY 2025 │ IR Roadshow Presentation in kt(2) % growth as CAGR 4% HIGH 2% LOW BASE MDI SUPPLY DEVELOPMENT (2020 - 2030e) 9,020 2020 2025 2030e 11,040 2020 2025 2030e 2-3% ~5%
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TDI market moving toward balance 36 Performance Materials: TDI industry demand and supply Notes: (1) Assumes global GDP CAGR 2025 - 2030e of ~2% (2) Based on historical and announced future nameplate capacities Source: Covestro estimates TDI DEMAND DEVELOPMENT (2020 - 2030e) in kt(1) % growth as CAGR in kt(2) % growth as CAGR 2,640 2020 2025 2030e 4% HIGH 3% LOW ~2% 3,470 2020 2025 2030e 2% HIGH 1% LOW 1-2% BASE TDI SUPPLY DEVELOPMENT (2020 - 2030e) 3-4% BASE FY 2025 │ IR Roadshow Presentation HIGHLIGHTS • In 2025, industry utilization of 76% burdened by weak demand and capacity expansions • Industry usually fully utilized in the high eighties percent • Favorable cash cost position puts Covestro into strong competitive position even under low cycle conditions ~1%
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covestro.com Covestro investment highlights Group financials FY’25 FY 2025 │ IR Roadshow Presentation 37 Segment overview Background information
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Led by a diverse, international management team 38 Covestro senior management BOARD OF MANAGEMENT Chief Executive Officer Dr Markus Steilemann Nationality: German Chief Financial Officer Christian Baier Nationality: German Chief Commercial Officer Monique Buch Nationality: Dutch Chief Technology Officer Dr Thorsten Dreier Nationality: German BUSINESS ENTITIES Performance Materials Hermann-Josef Dörholt Nationality: German Based in Leverkusen, Germany Specialty Films Aukje Doornbos Nationality: Dutch Based in Dormagen, Germany Tailored Urethanes Julia Rubino Nationality: US-American Based in Pittsburgh, USA Elastomers Dr Thomas Braig Nationality: German Based in Romans-sur-Isère, France Coatings and Adhesives Dr Thomas Römer Nationality: German Based in Leverkusen, Germany Thermoplastic Polyurethanes Dr Andrea Maier-Richter Nationality: German Based in Dormagen, Germany Engineering Plastics Lily Wang Nationality: Chinese Based in Shanghai, P.R. China Placeholder Placeholder Placeholder Placeholder Placeholder FY 2025 │ IR Roadshow Presentation
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ESG Ratings & Indices Scoring Range (Worst → Best) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Distinction D- to A - - - - - A- A- A- C - 0 to 100 CCC to AAA 100 to 0 Excluded / Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Excluded Covestro ESG rating results and index membership As of February 2026 MSCI ESG 73 80 72 71 BBB BBB AAAA AAA AA 7574 80 AA (1) Produced by MSCI Sustainability and Climate as of June 2025 (2) 20.120.918.320.023.3 21.4 26.7 Notes: (1) Covestro belongs to the Top 10% within the chemical industry. (2) Covestro belongs to the Top 20% within specialty chemicals. FY 2025 │ IR Roadshow Presentation39
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Synergies in scale, process technology and chemical know-how FY 2025 │ IR Roadshow Presentation40 One chemical backbone across all segments Notes: Chart contains key feedstock only; simplified illustration (1) via chloralkali electrolysis or HCl recycling, (2) nterface process, (3) melt process, (4) produced from CO and Cl2 Covestro activitiesPurchased raw materials INFRA- STRUCTURE RAW MATERIALS CORE UNITS / TECHNOLOGY • Premises • Site development • Streets • Pipeline bridges • Storage tanks • Jetties • Power supply & distribution • Waste management • Safety e.g. via reformer Toluene Benzene Phenol Acetone Chlorine(1) Cl2 NaOH MNB Mono-Nitrobenzene MDI DNT Dinitrotoluene TDI DPC Diphenylcarbonate LPC(2) Polycarbonates SPC(3) Phosgene(4) Phosgene(4) Phosgene(4)Phosgene(4) TDA Diaminotoluene Aniline MDA Methylene Dianiline BPA Bisphenol A Hydrogen (H2) Carbon Monoxide (CO) Propylene Propylene Oxide Polyether Polyols Nitric Acid (HNO3) HIGHLIGHTS • State-of-the-art asset base with leading process technology • 8 main sites with world- scale production facilities • Critical raw materials with no or limited merchant market sourced internally • Synergies at all steps along the value chain FINAL PRODUCT
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Synergies from chemical backbone and complementary technologies 41 Solutions & Specialties backward integration and value chain Notes: Simplified illustration, including acquired RFM business (1) via Deacon or HCl-ODC technology and/or Chlorine-Alkali electrolysis (2) produced from CO and Cl2 Toluene / Benzene Nitric acid (HNO3) Phenol Acetone Chlorine(1) HCl NaOH sTDI Phosgene(2) sMDI Phosgene(2) Performance Materials HMDA IPDA PACM Phosgene(2) Solutions & Specialties Aliphatic Isocyanates Aromatic derivatives TPU AA / TPA / PIA HDO / BDO / NPG / TMP PO EO PU Dispersions Phosgene(2) HDI IPDI H12MDI • Premises • Site development • Streets • Pipeline bridges • Storage tanks • Jetties • Power supply & distribution • Waste management • Safety INFRASTRUCTURE MAIN RAW MATERIALS COVESTRO VALUE CHAIN (simplified) Covestro activities Purchased raw materials Elastomers Specialty Films sPC FY 2025 │ IR Roadshow Presentation Polyester polyols Polyether polyols Powder Polyesters Acrylic Dispersions UV Resins Alkyd Dispersions Hybrid Dispersions Fiber Optical Materials MMA / BA Performance Materials Engineering Plastics Tailored Urethanes
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42 In € million FY 2024 FY 2025 % of FY25 SALES Y/Y Sales 14,179 12,942 100% -8.7% EBITDA 1,071 740 5.7% -30.9% D&A excl. impairments -842 -861 -6.7% 2.3% Impairments -142 -226 -1.7% 59.2% EBIT 87 -347 -2.7% -498.9% Financial result -114 -145 -1.1% 27.2% EBT -27 -492 -3.8% n.m Income taxes excl. DTA adjustments -23 93 0.7% n.m- DTA adjustments -222 -245 -1.9% 10.4% Net income(1) -266 -644 -5.0% 142.1% Earnings per share (in €)(2) -1.41 -3.39 - 140.4% Notes: (1) Includes FY 2024 €-6m and FY 2025 €1m attributable to noncontrolling interest (2) The earnings per share for FY 2024 are based on 188,740,330 shares and for FY 2025 on 189,879,508 shares n.m.: non meaningful Impairments • Q4 2025 impairment loss of €208m mainly due to deterioration of business prospects in the light of ongoing challenging economic conditions mostly attributed to assets in Performance Materials Deferred tax assets (DTA) • Not recognized deferred tax assets on tax loss carryforwards and temporary differences • DTA adjustments of €245m in FY 2025 mainly due to negative earnings, mainly in Germany, the Netherlands and US HIGHLIGHTS FY 2025 │ IR Roadshow Presentation Negative net income due significantly lower EBIT P&L statement FY 2025
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Development of last five years 43 1 2021 2022 2023 2024 2025 Sales (€ million) 15,903 17,903 14,377 14,179 12,942 • Volume y/y (%) +6.5 -5.0 -6.8 +7.4 -8.7 • Price y/y (%) +34.7 +10.1 -11.0 -8.0 -5.2 • FX y/y (%) -0.8 +5.9 -2.2 -0.8 -2.6 • Portfolio y/y (%) +8.1 +2.0 - - - EBITDA (€ million) 3,085 1,617 1,080 1,071 740 • Performance Materials 2,572 951 576 569 375 • Solutions & Specialties 751 825 817 740 681 Earnings per Share (€) 8.37 -1.42 -1.05 -1.41 -3.39 Capex (€ million) 764 832 765 781 770 Free operating cash flow (FOCF) (€ million) 1,429 138 232 89 -283 ROCE above WACC (%points) 12.9 -5.0 -6.1 -7.4 -10.2 Total net debt (1) (€ million) 2,604 2,920 2,885 2,933 1,880 Employees (2) (FTE) 17,909 17,985 17,520 17,503 17,598 Notes: (1) including pension provisions (2) status at year-end y/y year-over-year FY 2025 │ IR Roadshow Presentation
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Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports, which are available on the Covestro website at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to adjust them to future events or developments. FY 2025 │ IR Roadshow Presentation44