Slides
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LANXESS X LANXESS Q2 2026 results Matthias Zachert , CEO Oliver Stratmann , CFO
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2 Safe harbor statement The information included in this presentation is being provided for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to purchase, securities of LANXESS AG. No public market exists for the securities of LANXESS AG in the United States. This presentation contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors, nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
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3 Agenda 1. Review Q2 2026 and outlook 2. Financial and business details Q2 2026 3. Appendix
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Q2 Free cash flow Net financial debtQ2 EBITDA pre 94 152 Q1 2026 Q2 2026 Net working capital 4 Strong EBITDA improvement translating directly into FCF generation Based on higher volumes and prices as well as cost saving contributions -29 56 Q1 2026 Q2 2026 Among others, due to tight WC capital management 3,814 2,381 2,049 FY 2022 FY 2024 Q2 2026 1,343 1,374 Q1 2026 Q2 2026 Visible decreaseTightly managed [in € m] Targeted volume reduction partly offset raw material inflation throughout portfolio transformation ImprovedImproved
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5 -1% -6% -4% 10% 7% Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 0% -1% -1% -1% 6% ~13% operational growth also supported by Middle East situation Price: Increases successfully implemented Volumes: Positive volume development since start of 2026 Sequential price and volume growth Q2: Positive prices and volumes in tandem
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6 Saltigo: Restructuring and rebalancing for future growth Focus on innovative Pharma and Specialties solutions beyond agro! Strategy focus: ~€20 m savings from 2028 Streamlining capacity without sacrificing production & development capabilities Leverage Pharma & Specialties Saltigo restructuring measures: ~80% Agro~20% Pharma & Specialties Sales share:
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7 Bond placement of €500 m showcases strong capital market access Strong access to debt capital markets High investor demand Order book several times oversubscribed in the process Maturity profile improved and extended beyond 2030 Long term financing secured without financial covenantsUsage of proceeds: ▪ General corporate purposes ▪ Early refinancing of €500 m bond maturing in October 2026 Average interest rate of all long-term liabilities only 1.6%Coupon of 4.375% Liquidity of >€2 bn (€1.3bn undrawn credit facilities and ~€0.9 bn cash) Issuance strengthens LANXESS financing profile
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8 FY 2026 guidance confirmed: EBITDA pre expected in €450 – 550 m range ▪ Significant macro-economic uncertainties persist, intensified by Middle East conflict ▪ FX headwinds (mainly USD) throughout the year vs. PY Our view on economic environment ▪ Considerations for H2: − Continued cost streamlining to mitigate inflation, savings back-end loaded (total FY 2026: €65 m) − Support from EU Anti-Dumping − Guidance does not take any operational improvement in H2 vs. H1 into consideration ▪ Q3 EBITDA pre expected in €130-150 m range LANXESS outlook
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9 Agenda 1. Review Q2 2026 and outlook 2. Financial and business details Q2 2026 3. Appendix
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[€ m] Q2/2025 Q1/2026 Q2/2026 Sales 1,466 1,378 1,561 EBITDA pre 150 94 152 Margin 10.2% 6.8% 9.7% Capex 65 41 64 + Higher sales due to price increases and higher volumes yoy and sequentially + Substantial EBITDA pre increase of ~62% sequentially + Successful pass-through of strong raw material price inflation both yoy and sequentially − Energy costs weigh on results o Q2 2025 EBITDA pre and margin supported by high single-digit insurance compensation 10 [€ m] H1/2025 H1/2026 Δ Sales 3,067 2,939 -4% EBITDA pre 283 246 -13% Margin 9.2% 8.4% Capex 110 105 -5% LANXESS Group: Price and volume increase in tandem Price Volume FX Portfolio Total + 3% + 5% - 2% + 6%0% Sales vs. prior year Q2
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[€ m] Q2/2025 Q1/2026 Q2/2026 Sales 489 458 515 EBITDA pre 87 62 81 Margin 17.8% 13.5% 15.7% Capex 17 10 17 [€ m] H1/2025 H1/2026 Δ Sales 1,002 973 -3% EBITDA pre 160 143 -11% Margin 16.0% 14.7% Capex 27 27 0% + Strong volume improvement in all businesses except for Saltigo + Stable pricing amid volume expansion in challenging market environment + ~31% sequential EBITDA pre increase o Q2 2025 EBITDA pre and margin supported by insurance compensation (high single-digit € m) 11 Consumer Protection: Sequentially solid improvement while prior-year result contained positive one-time effect Price Volume FX Total +7% - 2% + 5% + 0 % Sales vs. prior year Q2
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[€ m] Q2/2025 Q1/2026 Q2/2026 Sales 528 521 588 EBITDA pre 58 44 77 Margin 11.0% 8.4% 13.1% Capex 27 12 24 [€ m] H1/2025 H1/2026 Δ Sales 1,073 1,109 3% EBITDA pre 110 121 10% Margin 10.3% 10.9% Capex 40 36 -10% 12 Specialty Additives: Strong improvement driven by both volume and pricing + Successful price increases yoy, passing through higher input costs + Positive volume development in all Business units; partly driven by E&E and Aviation + Substantial earnings increase by 75% sequentially + Earnings and margin improvement sequentially driven by higher utilization − FX remained a headwind, mainly due to the weaker U.S. dollar Sales vs. prior year Q2 + 8% - 3% + 11% + 6% Price Volume FX Total
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[€ m] Q2/2025 Q1/2026 Q2/2026 Sales 446 396 456 EBITDA pre 44 27 35 Margin 9.9% 6.8% 7.7% Capex 20 18 21 [€ m] H1/2025 H1/2026 Δ Sales 922 852 -8% EBITDA pre 84 62 -26% Margin 9.1% 7.3% Capex 38 39 3% 13 + Price increases counterbalance raw material price inflation o Positive volume development in Pigments is offset by absence of volumes due to closure of CXO plant in June 2025 (BU AII) + Earnings increase sequentially by ~30% − Intentional inventory management in favor of free cash flow impacting utilization − Higher energy costs and continued weakness in construction weigh on earnings Advanced Intermediates: Sequentially positive improvement while markets remain soft Sales vs. prior year Q2 Price Volume FX Total + 0% - 1% + 2% + 3%
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14 ▪ Higher sales mainly due to positive price and volume effect ▪ Higher selling expenses mainly due to increased volumes ▪ Reduction of G&A helped by cost saving measures and FX development ▪ Financial result improvement mainly driven by positive valuation effect of Envalior shareholder loan and right to offer ▪ Earnings and margin stable despite PY high-single digit support by insurance payment P&L Q2: Stable earnings P&L [€ m] yoy Sales 1,466 1,561 6% Cost of sales -1,139 -1,231 -8% Selling -217 -220 -1% G&A -64 -56 13% R&D -24 -24 0% EBIT -29 (-2%) -27 (-2%) 7% Financial result -26 -19 27% Net Income -45 (-3%) -53 (-3%) -18% Adjusted EPS [€] 0.59 0.51 -14% EBITDA 188 (13%) 105 (7%) -44% thereof except. 38 (-3%) -47 (3%) - EBITDA pre except. 150 (10%) 152 (10%) 1% Q2/2025 Q2/2026
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Cash flow [€ m] Q2/2025 Q2/2026 Profit before tax -55 -46 Depreciation & amortization 217 132 Result from investments accounted for using the equity method 28 31 Financial gains on divestments -79 -18 Income taxes -28 -11 Changes in working capital 59 -25 Changes in other assets & liab. -46 57 Operating cash flow 96 120 Capex -65 -64 Free cash flow 31 56 15 ▪ Improved profit before tax ▪ Lower depreciation due to restructuring measures in prior year ▪ Last year’s gains from divestments reflect sale of Business Unit Urethane Systems ▪ Changes in working capital due to higher receivables based on increased sales, simultaneously higher inventory valuation due to increased raw material prices; still tightly managed ▪ Changes in other assets & liabilities mainly due to personnel- related provisions Strong improvement & disciplined W/C management - cash discipline remains key priority Free cash flow = Operating cash flow minus Capex
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Balance sheet [€ m] 31.12.2025 30.06.2026 Total assets 7,748 8,354 Equity 3,500 3,484 Equity ratio 45% 42% Net financial debt1 2,023 2,049 Net financial debt after deduction of ENVALIOR shareholder loan 1,762 1,787 Pension provisions 421 374 Net working capital 1,200 1,374 Net working capital / sales2 21% 25% 16 1 Deducting cash, cash equivalents, near cash assets 2 Last twelve months sales ▪ Decrease in total assets due to €500 m bond repayment, FX effect and impairments ▪ Decrease in equity mainly related to FX and net income development (incl. Envalior) ▪ Equity ratio remains strong ▪ Net financial debt after divestment of Business Unit Urethane Systems further reduced (€1,762 m if considering loan to Envalior) ▪ Tight working capital management ▪ Total assets increased due to €500 m bond issuance ▪ Equity stable: Positive FX effects compensated slightly negative net income ▪ Equity ratio remains strong, mathematically lower due to extended balance sheet ▪ Net financial debt nearly stable versus year end 2025 ▪ Lower pension provision given an increase in interest rates esp. in Germany ▪ Working capital up on increased business activities and inflation on prices Successful placement of €500 m bond extends balance sheet
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310 17 Sales [€ m] EBITDA pre [€ m] SGO LPT F&FMPP Consumer Protection IPG AII Advanced Intermediates LAB PLA RCH Specialty Additives Sales share [€ m] 446 456 528 588 489 515 Q2 2025 Q2 2026 +2% +5% +11% 1,561* + 6% 1,466* 44 35 58 77 87 81 -39 -41 Q2 2025 Q2 2026 AI SA CP -20% -7% +33% +1% 152150 AI SA CP Q2 2026: increased sales due to better volume and pricing * Total group sales including all other segments All other segments
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18 …implementation by:FORWARD! ▪ Reduction of ~550 positions worldwide across all functions ▪ Fluctuation & demographics supportive ▪ Adjustments in production network2 1 OTC in connection to Saltigo restructuring booked in Q2 2026 2 As announced in Q2 2025 & Q2 2026 ~€50 m + ~€100 m + ~€20 m (Q2/2026 Saltigo) ~€150 m by the end of 2025 [in € m] 2026 2027 2028 Savings ~65 ~65 ~40 Cash Outs1 ~25 ~25 ~20 Actively adjusting our cost structure Targeting further structural savings until end of 2028 More to come… by the end of 2028
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19 [€ m] Q2/2025 Q2/2026 H1/2025 H1/2026 Excep. thereof D&A Excep. thereof D&A Excep. thereof D&A Excep. thereof D&A Strategic realignment and restructuring (incl. FORWARD!) -107 -81 -50 -11 -108 -81 -54 -11 Strategic IT-projects -9 0 -4 0 -17 0 -10 0 M&A, digitalization and others 68 -5 -3 0 56 -5 -7 0 Total -48 -86 -57 -11 -69 -86 -71 -11 Exceptional items (on EBIT) mainly related to Saltigo restructuring measures
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20 * LANXESS Consensus 20.07.2026 Guidance confirmed: ▪ Cost savings back-end loaded ▪ Support from EU Anti- Dumping ▪ No necessity for meaningful operational improvement vs. H1 ▪ Construction recovery expected rather in 2027 H2 considerations: H1 2026 H2 2026 FY 2026 FY 2026 EBITDA pre range (~€450 – 550 m) on solid grounds 246 ~€450 – 550 m in € m
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yoy Sales 3,067 2,939 -4% Cost of sales -2,418 -2,347 3% Selling -443 -428 3% G&A -128 -112 13% R&D -53 -50 6% EBIT -52 (-2%) -67 (-2%) -29% Financial result -64 -115 -80% thereof at-equity result -59 -95 -61% Net income -102 (-3%) -194 (-7%) -90% Adjust. EPS [€] 0.82 0.01 -99% EBITDA 300 (10%) 186 (6%) -38% thereof except. 17 (1%) -60 (-2%) - EBITDA pre 283 (9%) 246 (8%) -13% H1/2025 H1/2026 21 ▪ Lower sales mainly due to unfavorable FX and portfolio effect (Urethanes business in Q1 2025) ▪ Lower selling expenses due to lower freight costs ▪ Reduction of all cost items, helped by cost saving measures and FX development ▪ Financial result driven by Envalior at-equity result and shareholder loan valuation ▪ Earnings and margin decrease mainly as a result of increased input costs, unfavorable FX development and absence of Urethane Systems business P&L H1: Price & volume up, unfavorable FX effect & absence of Urethane Business drag on earnings
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Cash flow [€ m] H1/2025 H1/2026 Profit before tax -116 -182 Depreciation & amortization 352 253 Result from investments accounted for using the equity method 59 95 Financial losses & gains on divestments -72 7 Income taxes -23 -4 Changes in working capital -122 -151 Changes in other assets & liab. -48 114 Operating cash flow 30 132 Capex -110 -105 Free cash flow -80 27 22 ▪ Lower profit before tax due lower Envalior at-equity result ▪ Financial losses & gains reflect proceeds from divestment of Urethane Systems business in previous year ▪ Changes in working capital reflect higher inventory valuation due to increased raw material prices; still tightly managed ▪ Changes in other assets & liabilities among others due to personnel-related provisions H1 2026: significantly improved cash generation Free cash flow = Operating cash flow minus Capex
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310 23 Sales [€ m] EBITDA pre [€ m] SGO LPT F&FMPP Consumer Protection IPG AII Advanced Intermediates LAB PLA RCH Specialty Additives Sales share [€ m] 922 852 1,073 1,109 1,002 973 H1 2025 H1 2026 -8% -3% +3% 2,939* -4% 3,067* 84 62 110 121 160 143 -71 -80 H1 2025 H1 2026 AI SA CP -26% -11% +10% -13% 246 283 AI SA CP H1 2026: FX & portfolio driven lower sales in persisting weak demand environment * Total group sales including all other segments All other segments
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Asia / Pacific Americas EMEA (excl. Germany) Germany30% 33% 19% 18% 24 H1 2026: balanced regional sales split H1 2026 sales by region [%] Regional development of sales [€ m] 526 524 925 874 1,064 964 552 577 H1 2025 H1 2026 3,067 2,939 Asia/Pacific Americas EMEA (excl. Germany) Germany +5% -9% 0% -6%
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25 Agenda 1. Review Q2 2026 and outlook 2. Financial and business details Q2 2026 3. Appendix
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Capex ~330 Operational depreciation ~340 ▪ excluding ~€130 m of intangible amortization All other segments (EBITDA pre) -140 to -150 Exceptional expenses ~80 to 100 ▪ on EBIT, based on current projects FX sensitivity ~3 ▪ EBITDA pre impact after hedging per cent change of EUR/USD Savings ~65 ▪ Back-end loaded 26 Housekeeping items 2026 Outlook FY 2026 (in € m)
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27 * 1.7% incl. financial leases Maturity profile well balanced Strong access to debt capital markets ▪ Long-term financing secured ▪ All group financing executed without financial covenants ▪ All group financing executed without financial covenants ▪ Successful placement of a €500 m bond to refinance the October 2026 bond maturity -1500 -1000 -500 0 500 1000 2026 2027 2028 2029 2030 2031 2031+ Cash & cash equivalents, near cash assets Financial liabilities Committed credit lines Sustainable revolving credit facility Bond €500 m 0.00% Bond €500 m 1.00% Bond €600 m 0.625% Bond €600 m 1.75% Private placement €100 m 3.95% Sustainable revolving credit facility €800 m Committed credit lines €500 m Ø interest 1.6%* Bond €500 m 4.375% New Bond ‘29 ‘30 ‘32‘26 ‘28‘27 ‘31
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28 Contact details Investor Relations Eva Husmann Head of Investor Relations Mob.: +49 151 7461 2969 E-Mail: eva.husmann@lanxess.com Thomas Kaiser Institutional Investors / Analysts Mob.: +49 151 7461 3890 E-Mail: thomas.kaiser@lanxess.com Jens Ussler Institutional Investors / Analysts Mob.: +49 151 7465 0520 E-Mail: jens.ussler@lanxess.com Catharina Kaiser Institutional Investors / Analysts Mob.: +49 151 7461 2913 E-Mail: catharina.kaiser@lanxess.com Sophie Köller ESG Investors and Ratings Mob.: +49 151 7461 3158 E-Mail: sophie.koeller@lanxess.com Visit the IR website
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29 Abbreviations Consumer Protection MPP Material Protection Products F&F Flavors & Fragrances SGO Saltigo LPT Liquid Purification Technologies Specialty Additives PLA Polymer Additives LAB Lubricant Additives Business RCH Rhein Chemie Advanced Intermediates AII Advanced Industrial Intermediates IPG Inorganic Pigments §
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30 Upcoming events 2026 – Proactive capital market communication 08 Berenberg Food Ingredients & Chemical Conference, London 22 Berenberg & GS Conference, Munich 24 Baader Investment Conference, Munich Sep Nov 5 Q3 Reporting Aug 25 mwb German Select VIII (virtual)