Slides
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LANXESS – Q3 2026 results Matthias Zachert, CEO I 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 Q3 2026 and outlook 2. Financial and business details Q3 2026 3. Appendix
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Free cash flow Net financial debtEBITDA pre 125 139 Q3 2025 Q3 2026 Net working capital 4 Operational improvement and continuous focus on debt reduction Based on pricing as well as cost savings -29 27 75 Q1/26 H1/26 9M/26 Cash flow focus as priority 3,814 2,381 2,011 FY 2022 FY 2024 Q3 2026 1,362 1,376 Q3 2025 Q3 2026 Visible decreaseTightly managed [in € m] WC nearly stable; volume reduction in inventory more than offsets cost inflation – DSI reduced Supported by strong cash generation ImprovedImproved 92 83 DSI*: * Days of sales in inventory
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03/31 06/30 09/30 12/31 5 Operational free cash flow generation in very adverse environment Operational leverage: ▪ Effective cost saving measures ▪ Strict working capital management illustrative * NWC = Net Working Capital NWC/Sales 24.3% Seasonal decrease 75 -94 in € m 2026 2025 Free Cashflow 2026 Positive FY free cash flow targeted
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6 ▪ Significant macro-economic uncertainties persist, intensified by Middle East conflict ▪ Higher energy costs ▪ Demand particularly in construction, agro and auto industry to remain weak Our view on economic environment ▪ Considerations for Q4 ▪ Continued cost streamlining to mitigate inflation, savings back-end loaded (total FY 2026: €65 m) ▪ Support from EU Anti-Dumping ▪ Seasonally weaker ▪ Beginning of quarter still impacted by low Rhine River water levels LANXESS outlook We specify our guidance: Upper end of €450 – 500 m EBITDA pre with a continued positive free cash flow in Q4 FY 2026 guidance specified:
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7 Agenda 1. Review Q3 2026 and outlook 2. Financial and business details Q3 2026 3. Appendix
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+ Sales increase reflecting better pricing and slight volume increase in tandem + Higher prices reflect successful pass-through of elevated raw material and energy prices + Cost savings and US tariff refunds support earnings, however, generally tariffs remain a burden 8 [€ m] 9M 2025 9M 2026 Δ Sales 4,405 4,406 0% EBITDA pre 408 385 -6% Margin 9.3% 8.7% Capex 174 181 4% LANXESS Group: Continued pricing actions offset input cost inflation Price Volume FX Total + 8% + 1% + 1% + 10% Sales vs. prior year Q3 [€ m] Q3 2025 Q3 2026 Δ Sales 1,338 1,467 10% EBITDA pre 125 139 11% Margin 9.3% 9.5% Capex 64 76 19%
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[€ m] 9M 2025 9M 2026 Δ Sales 1,455 1,464 1% EBITDA pre 232 210 -9% Margin 15.9% 14.3% Capex 47 51 9% + Price increases in ongoing challenging market environment to pass through rising raw material prices + Positive volume development, especially in F&F and water purification business − Ongoing weak agro industry held back earnings o Q3 2025 EBITDA pre and margin supported by take-or- pay-contract (~€10 m) and release of variable compensation provisions in PY 9 Consumer Protection: Price and volume growth Price Volume FX Total + 3% + 1% + 8% + 5 % Sales vs. prior year Q3 [€ m] Q3 2025 Q3 2026 Δ Sales 453 491 8% EBITDA pre 72 67 -7% Margin 15.9% 13.6% Capex 20 24 20%
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[€ m] 9M 2025 9M 2026 Δ Sales 1,578 1,678 6% EBITDA pre 155 192 24% Margin 9.8% 11.4% Capex 61 61 0% 10 Specialty Additives: Successful pricing offsets higher raw material costs + Strong pricing, successfully passing through significantly higher input costs + Volumes improved overall; Rhein Chemie benefits from customers’ focus on European supply security + Cost saving measures show traction, earnings and margins improved − Demand from construction & auto remains weak Sales vs. prior year Q3 + 2% + 1% + 13%+ 10% Price Volume FX Total [€ m] Q3 2025 Q3 2026 Δ Sales 505 569 13% EBITDA pre 45 71 58% Margin 8.9% 12.5% Capex 21 25 19%
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[€ m] 9M 2025 9M 2026 Δ Sales 1,299 1,256 -3% EBITDA pre 110 87 -21% Margin 8.5% 6.9% Capex 58 64 10% 11 + Price increases esp. in Advanced Industrial Intermediates to compensate higher raw material and energy costs − Slightly negative volumes due to ongoing competitive pressure and unchanged weakness in construction and agro chemicals − Increasing energy costs and additional logistic costs (high single-digit m € amount) due to low Rhine River water levels burden results Advanced Intermediates: Pricing measures to compensate cost inflation while demand remains weak Sales vs. prior year Q3 Price Volume FX Total - 1% + 1% + 7%+ 8% [€ m] Q3 2025 Q3 2026 Δ Sales 377 404 7% EBITDA pre 26 25 -4% Margin 6.9% 6.2% Capex 20 25 25%
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12 ▪ Increased sales mainly due to positive price and volume effect ▪ Higher selling expenses mainly reflect increased logistic costs ▪ G&A expenses up due to increased personnel-related provisions ▪ Financial result mirrors mainly negative at-equity result from Envalior and risen interest ▪ Earnings and margins improved driven by better operational performance P&L Q3: Improved operational performance P&L [€ m] yoy Sales 1,338 1,467 10% Cost of sales -1,084 -1,173 -8% Selling -199 -205 -3% G&A -44 -50 -14% R&D -22 -24 -9% EBIT -28 (-2%) 9 (1%) >100% Financial result -40 -65 -63% Net Income -77 (-6%) -70 (-5%) 9% Adjusted EPS [€] -0.07 0.09 >100% EBITDA 105 (8%) 132 (9%) 26% thereof except. -20 -7 -65% EBITDA pre except. 125 (9%) 139 (9%) 11% Q3 2025 Q3 2026
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Cash flow [€ m] Q3 2025 Q3 2026 Profit before tax -68 -56 Depreciation & amortization 133 123 Result from investments accounted for using the equity method 32 47 Financial losses (gains) 2 11 Income taxes -11 -13 Changes in working capital 16 2 Changes in other assets & liab. -54 11 Operating cash flow 50 124 Capex -64 -76 Free cash flow -14 48 13 ▪ Profit before tax improved ▪ Changes in at-equity contribution mainly from Envalior ▪ Financial loss attributable to interest expenses and valuation of Envalior shareholder loan ▪ Changes in working capital reflect tight inventory management amid rising input costs ▪ Changes in other assets & liabilities mainly due to differences in yoy personnel-related provisions Free cash flow = Operating cash flow minus Capex Strong FCF improvement & disciplined W/C management
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Balance sheet [€ m] 31.12.2025 30.09.2026 Total assets 7,748 8,229 Equity 3,500 3,481 Equity ratio 45% 42% Net financial debt1 2,023 2,011 Net financial debt after deduction of ENVALIOR shareholder loan 1,762 1,748 Pension provisions 421 319 Net working capital 1,200 1,376 Net working capital / sales2 21% 24% 14 1 Deducting cash, cash equivalents, near cash assets 2 Last twelve months sales ▪ Total assets increased due to €500 m bond issuance in Q2 ▪ Equity stable: Positive FX effects & valuation of pension obligation offset negative net income ▪ Equity ratio remains strong, mathematically lower due to extended balance sheet after bond issuance ▪ Net financial debt slightly decreased versus year end 2025 ▪ Lower pension provisions reflect higher interest rates esp. in Germany ▪ Working capital seasonally up on increased business activities and price inflation Extended balance sheet due to €500 m bond placement
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310 15 Sales [€ m] EBITDA pre [€ m] SGO LPT F&FMPP Consumer Protection IPG AII Advanced Intermediates LAB PLA RCH Specialty Additives Sales share [€ m] 377 404 505 569 453 491 Q3 2025 Q3 2026 +7% +8% +13% 1,467* + 10% 1,338* 26 25 45 71 72 67 -18 -24 Q3 2025 Q3 2026 AI SA CP -4% -7% +58% +11% 139 125 AI SA CP Q3 2026: Increased sales due to better pricing & volume * Total group sales including all other segments All other segments
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16 …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 structural savings until end of 2028 More to come… by the end of 2028
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17 [€ m] Q3/2025 Q3/2026 9M/2025 9M/2026 Excep. thereof D&A Excep. thereof D&A Excep. thereof D&A Excep. thereof D&A Strategic realignment and restructuring (incl. FORWARD!) -2 3 1 0 -111 -78 -52 -9 Strategic IT-projects -9 0 -4 0 -25 0 -14 0 M&A, digitalization and others -6 0 -6 -2 50 -5 -14 -4 Total -17 3 -9 -2 -86 -83 -80 -13 Exceptional items (on EBIT) 9M mainly related to strategic realignment and restructuring
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yoy Sales 4,405 4,406 0% Cost of sales -3,502 -3,520 -1% Selling -642 -633 1% G&A -172 -162 6% R&D -75 -74 1% EBIT -80 (-2%) -58 (-1%) 28% Financial result -104 -180 -73% thereof at-equity result -91 -142 -56% Net income -179 (-4%) -264 (-6%) -47% Adjust. EPS [€] 0.75 0.10 -87% EBITDA 405 (9%) 318 (7%) -21% thereof except. -3 -67 >100% EBITDA pre 408 (9%) 385 (9%) -6% 9M 2025 9M 2026 18 ▪ Stable sales despite portfolio effect (Urethanes business divested in Q2 2025) ▪ Reduction of cost items driven by cost saving measures ▪ Financial result driven by Envalior at-equity result and shareholder loan valuation ▪ Higher exceptionals due to Saltigo restructuring in Q2 2026; 2025 positively impacted by disposal of Urethane Systems business ▪ Earnings and margin decrease mainly as a result of unfavorable FX development and absence of Urethane Systems business P&L 9M: Price & volume up - higher input costs, FX & portfolio effect negatively affect earnings
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Cash flow [€ m] 9M 2025 9M 2026 Profit before tax -184 -238 Depreciation & amortization 485 376 Gains on disposal of divestments -76 -1 Result from investments accounted for using the equity method 91 142 Financial losses (gains) 6 18 Income taxes -34 -17 Changes in working capital -106 -149 Changes in other assets & liab. -102 125 Operating cash flow 80 256 Capex -174 -181 Free cash flow -94 75 19 ▪ Lower profit before tax due lower Envalior at-equity result ▪ Gains on disposal of assets including proceeds from divestment of Urethane Systems business in previous year ▪ Changes in working capital reflect mainly higher inventory valuation due to increased raw material prices; volumes still tightly managed ▪ Changes in other assets & liabilities among others due to personnel-related provisions and bonus payout for FY 2024 in previous year 9M 2026: Significantly improved cash generation Free cash flow = Operating cash flow minus Capex
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110 87 155 192 232 210 -89 9M 2025 9M 2026 20 Sales [€ m] EBITDA pre [€ m] SGO LPT F&FMPP Consumer Protection IPG AII Advanced Intermediates LAB PLA RCH Specialty Additives Sales share [€ m] 1,299 1,256 1,578 1,678 1,455 1,464 9M 2025 9M 2026 - 3% + 1% + 6% 4,406* + 0% 4,405* AI SA CP - 21% - 9% + 24% - 6% 385408 AI SA CP 9M 2026: Stable sales despite portfolio effect in persisting weak demand environment * Total group sales including all other segments All other segments -104
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Asia / Pacific Americas EMEA (excl. Germany) Germany29% 34% 19% 18% 21 9M 2026: Balanced regional sales split 9M 2026 sales by region [%] Regional development of sales [€ m] 770 783 1,303 1,290 1,511 1,480 821 853 9M 2025 9M 2026 4,405 4,406 Asia/Pacific Americas EMEA (excl. Germany) Germany + 4% - 2% + 2% - 1%
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22 Agenda 1. Review Q3 2026 and outlook 2. Financial and business details Q3 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 23 Housekeeping items 2026 Outlook FY 2026 (in € m)
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24 Maturity profile as of 5 November 2026; cash & cash equivalents as of 30 September 2026 * after €500 m-Bond repayment on 07 October 2026; 1.85% incl. financial leases Long-term financing secured ▪ All group financing executed without financial covenants ▪ Bond, which matured on October 7, 2026, has been successfully repaid ▪ Successful extension of sustainable revolving credit facility (€800 m) to 2031 -1200 -1000 -800 -600 -400 -200 0 200 400 600 800 2026 2027 2028 2029 2030 2031 2031+ Cash & cash equivalents, near cash assets Financial liability repaid on 07 October 2026 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 €300 m Ø interest 1.7%* Bond €500 m 4.375% ‘29 ‘30 ‘32‘26 ‘28‘27 ‘31 Strong access to debt capital markets Maturity profile well balanced
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25 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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26 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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27 Upcoming events 2026/2027 – Proactive capital market communication 07 Lyon Oddo BHF Forum 10/11 New York GIS 18 Frankfurt Kepler GCC Jan MarNov/ Dec 19 London Commerzbank German Corporate Day 24 Frankfurt Eigenkapitalforum 30/1 London Berenberg European Conference 1 (Dec) NYC Citi Basic Materials Conference 17 FY 2026 Disclosure