Slides
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2025 Investor Day October 8, 2025
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Agenda Introduction Business Segment Overviews Break Panel Discussion: Business Synergies & Growth Strategy Financial Summary Q&A Closing Remarks Overview of Solstice 1:30PM 2:10PM 2:45PM 3:00PM 3:40PM 4:00PM 4:30PM 1:40PM 2
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Today’s Presenters David Sewell President & Chief Executive Officer Tina Pierce Chief Financial Officer Jeff Dormo Senior Vice President Refrigerants & Applied Solutions Simon Mawson Senior Vice President Electronic & Specialty Materials Wylie Clark Chief Development Officer Mike Leithead Vice President Investor Relations 3
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The information in this presentation has been prepared in connection with the previously announced plan by Honeywell International Inc. (“HON” or “Honeywell”) to spin off its Advanced Materials business (the “Company”, "Solstice Advanced Materials Inc.“, “Solstice Advanced Materials” or “Solstice”) from information provided by management and other sources. This presentation contains “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about Solstice's industry and its business and financial results. Forward-looking statements often include words such as “anticipates,” “estimates,” “expects,” “projects,” “forecasts,” “intends,” “plans,” “continues,” “believes,” “may,” “will,” “goals” and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Solstice’s actual results may vary materially from those expressed or implied in its forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by Solstice or on Solstice’s behalf. Although Solstice believes that the forward-looking statements contained in this presentation are based on reasonable assumptions, you should be aware that many factors could affect Solstice’s actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including, but not limited to: the ability to effect the proposed spin-off transaction and to meet the conditions related thereto; the possibility that the spin-off transaction will not be completed within the anticipated time period or at all; the possibility that the spin-off transaction will not achieve its intended benefits; the possibility of disruption, including disputes, litigation or unanticipated costs, in connection with the spin-off transaction; the uncertainty of the expected financial performance of Solstice following completion of the spin-off transaction; the ability to achieve anticipated capital structures in connection with the spin-off transaction, including the future availability of credit and factors that may affect such availability; the ability to achieve anticipated credit ratings in connection with the spin-off transaction; the ability to achieve anticipated tax treatments in connection with the spin-off transaction and future, if any, divestitures, mergers, acquisitions and other portfolio changes and the impact of changes in relevant tax and other laws; and the failure to realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with the spin-off transaction and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions; Solstice’s lack of operating history as an independent, publicly traded company and unreliability of historical combined financial information as an indicator of Solstice’s future results; Solstice’s ability to successfully develop new technologies and introduce new products; changes in the price and availability of raw materials that Solstice uses to produce its products; Solstice’s ability to comply with complex government regulations and the impact of changes in such regulations; global climate change and related regulations and changes in customer demand; the public and political perceptions of nuclear energy and radioactive materials; economic, political, regulatory, foreign exchange and other risks of international operations; the impact of tariffs or other restrictions on foreign imports; Solstice’s ability to borrow funds and access capital markets and any limitations in the terms of Solstice’s indebtedness; Solstice’s ability to compete successfully in the markets in which it operates; the effect on Solstice’s net sales and cash flow from seasonal fluctuations and cyclical market conditions; concentrations of Solstice’s credit, counterparty and market risk; Solstice’s ability to successfully execute or effectively integrate acquisitions; Solstice’s joint ventures and strategic co-development partnerships; Solstice’s ability to recruit and retain qualified personnel; potential material environmental liabilities; the hazardous nature of chemical manufacturing; decommissioning and remediation expenses and regulatory requirements; potential material litigation matters and government proceedings; the impact of potential cybersecurity attacks, data privacy breaches and other operational disruptions; increasing stakeholder interest in public company performance, disclosure, and goal-setting with respect to Environmental, Social, and Governance ("ESG") matters; failure to maintain, protect, and enforce Solstice’s intellectual property or to be successful in litigation related to intellectual property of Solstice or others, or competitors developing similar or superior intellectual property or technology; unforeseen U.S. federal income tax and foreign tax liabilities; U.S. federal income tax reform; Solstice’s ability to operate as an independent, publicly traded company without certain benefits available to Solstice as a part of Honeywell; Solstice’s inability to maintain intellectual property agreements; timing, declaration, amount and payment of Solstice’s dividend program; potential cash contributions to benefit pension plans; Solstice’s ability to maintain proper and effective internal controls; and certain factors discussed elsewhere in this presentation. These risks could cause actual results to differ materially from those implied by forward-looking statements in this presentation, in Solstice's Form 10 Registration Statement, as amended, and its other filings with the Securities and Exchange Commission (the "SEC"). Even if Solstice’s results of operations, financial condition and liquidity and the development of the industry in which we operate are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. Any forward-looking statements made by us in this presentation speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter Solstice’s forward-looking statements, whether as a result of new information, subsequent events or otherwise. Non-GAAP Financial Measures This presentation contains financial measures presented on a non-GAAP basis. The non-GAAP financial measures used in this presentation are as follows: Adjusted EBITDA, on a total company basis; Adjusted EBITDA margin, on a total company basis; Adjusted Standalone EBITDA (estimate); Adjusted Standalone EBITDA Margin (estimate); Adjusted Standalone EBITDA (estimate)- capex; Cash conversion; Net debt, Net leverage ratio, and Return on invested capital; if and as noted in the presentation. Management believes that, when considered together with comparable GAAP measures, these non-GAAP measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Refer to the appendix attached to this presentation for historical reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions. We have not reconciled Adj. Standalone EBITDA Margin, Adj. EBITDA, Adj. EBITDA Margin, Adj. Standalone EBITDA (estimate) – Capex and Cash Conversion 2025 full year guidance and medium-term financial outlook, as applicable, because the information needed to reconcile these measures is unavailable due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred. Additionally, estimating such future estimated measures and providing a meaningful reconciliation consistent with our accounting policies for future periods requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward-Looking Statements & Other Disclaimers 4
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Overview David Sewell President & Chief Executive Officer
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Solstice | A Differentiated Advanced Materials Company Clear right-to-win built on a rich 130+ year history of solving complex customer challenges Underpinned by strong secular trends in cooling, advanced computing, safety, nuclear, and healthcare A refined operating model and independent strategy to unleash our full growth potential Strong balance sheet enabling investments to accelerate growth Purposeful organizational design reflects a blend of Honeywell heritage and proven industry leaders 6
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Refrigerants & Applied Solutions 72% Electronic & Specialty Materials 28% HVAC/R 18% Automotive 16% Alternative Energy (Nuclear) 12% Construction 11% Chemicals 11% Industrial & Others 10% Semiconductors 10% Life Science & Medical 8% Defense 4% Key Metrics (2024) $995 million Adj. Standalone EBITDA (estimate)2 26.4% Adj. Standalone EBITDA Margin (estimate)2 $3.8 billion Net Sales 4.4% Net Sales CAGR1 (2017-2024) Net Sales by Geography4 (2024) 120 Countries & Territories with Sales 5,700+ Patents Issued & Pending Applications3 3,900+ Employees3 3,000+ Customers Net Sales by End Market (2024) U.S. 61% EMEA 23% Other International 16% Example Blue Chip Customer Partners Key Technology Platforms & Brands Solstice® Aclar® Business Segments (2024 Net Sales) 1 Financial information for 2022-2024 based on Form 10 carve-out financial statements. Years prior to 2022 based on internal reporting, does not reflect all carve-out adjustments, and is illustrative only. 2 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 3 As of June 30, 2025. 4 Net sales by geography classified according to their country of origin. Solstice at a Glance 7
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2010 Solstice® HFOs launched 2008 Commercialization of high-strength monolithic Copper Manganese Targets 1800s 5,700+ patents issued and pending2 Portfolio of trusted leading brands 130+ years of innovation leadership 1920 Allied Chemical and Dye Corporation (largest U.S. chemical company until 1960s) is formed 1940 RAS segment predecessor NACC becomes division of Allied Chemical and Dye Corporation 1999 Allied Signal merges with Honeywell 2022 AstraZeneca partnership on next-gen respiratory inhalers 2017 U.S. production of Solstice® R-1234yf begins Corporate Milestones Technology Platform & Product Milestones Roots of Solstice date back to the 1800s 2016 Advanced Materials business established within Honeywell $3.8 billion Net Sales 2023 Spectra® Ultra Fine BIO fiber for medical applications introduced Strong Foundation Built on a Rich Legacy 1979 Roots of Hydranal technology 1958 Metropolis Works Facility built 1992 ConverDyn General Partnership founded 2019 Aclar® Accel launched 2021 Solstice® ze (R- 1234ze) Baton Rouge facility expansion 2021 Futraheat partnership on Solstice® zd (R- 1233zd) heat pump 1949 Genetron® CFCs, HCFCs, HFCs introduced 2000 Spectra® Specialty fibers (UHMWPE) 2024 Spin-off announcement 2019 Spectra® S6000 series launched 2025 Solstice spin-off 8 $2.4 billion Net Sales1 1 Excludes AdvanSix spin-off. 2 As of June 30, 2025.
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Strong Financial Performance Adj. EBITDA Margin1,2 (2024) 26.4% 17.8% Peer Median5 Net Sales1 ($ in billions) $2.8 $2.8 $2.8 $2.7 $3.1 $3.6 $3.6 $3.8 $3.8 2017 2018 2019 2020 2021 2022 2023 2024 LTM June 30, 2025 4.4% CAGR Net Sales CAGR (2017-2024) 4.4% 3.9% Peer Median3 1 Financial information for 2022-2024 based on Form 10 carve-out financial statements. Years prior to 2022 based on internal reporting, does not reflect all carve-out adjustments, and is illustrative only. 2 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 3 Reflects median 2017-2024 Net Sales CAGRs of Avient, Chemours, Eastman, Element, Entegris, Materion, and RPM calculated with data provided by FactSet. 4 Shows Adjusted Standalone EBITDA Margin (estimate), which is a non-GAAP measure. Refer to appendix for historical reconciliations of relevant non-GAAP financial metrics to the most directly comparable GAAP measure. 5 Reflects median 2024 metrics of Avient, Chemours, DuPont, Eastman, Element, Entegris, Materion, and RPM calculated with data provided by FactSet. 6 LTM stands for last twelve months. 9 Track record of above-market growth with best-in-class margins and returns 1 4 6 21.5% 8.4% Return on Invested Capital (2024) 2 Peer Median5
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10 • Favorable portfolio mix • Highly diversified product lines provide stability across the business cycle • Several product categories driven by non-discretionary spending • Global reach and diversification across different end markets • Exposed to end markets with strong secular growth tailwinds such as semiconductors, data centers, and nuclear • Significant backlog, especially in nuclear energy • Customer base spans 120 countries and territories • Manufacturing capabilities located in close customer proximity • Strong supply chain with local- for-local approach and global efficiencies • Top customer represents less than 3% of Net Sales • Similarly strong diversified customer profiles at the segment level End-Market Mix1 Geographical Mix1,2 Customer Concentration1,3 Top 10 16% Other 84% U.S. 61% EMEA 23% Other 16% Refrigerants 34% Building Solutions & Intermediates 20% Healthcare Packaging 6% Alternative Energy Services 12% Safety & Defense Solutions 5% Research & Performance Chemicals 13% Electronic Materials 10% 1 Net sales for 2024. 2Net Sales by geography classified according to their country of origin. 3Excludes ConverDyn and Quimobasicos joint ventures. Business Profile Product Mix1 Diverse and global business profile provides resilience through cycles HVAC/R 18% Automotive 16% Alternative Energy (Nuclear) 12% Construction 11% Chemicals 11% Industrial & Others 10% Semiconductors 10% Life Science & Medical 8% Defense 4%
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Customer & Manufacturing Footprint 1 ~90% US Sales Manufactured in US ~60% Sales Manufactured in Same Region ~66% of Supplier Spend in the US from US Suppliers ~6% of Supplier Spend in the US from China 1 All information for 2024 unless otherwise noted. Certain locations on map have multiple co-located or nearby facilities. Excludes countries with de minimis sales. 2 Includes owned facilities, joint ventures, and dedicated facilities. 3 Average customer score for past eight quarters ended 2024. 4 Based on 2024 Total Case Incident Rate (TCIR) data for 53 medium-sized members of the American Chemistry Council (ACC). ~90% U.S. Sales Manufactured in U.S. ~60% Sales Manufactured in Same Region ~65% of Supplier Spend in the U.S. from U.S. Suppliers 11 Benefits from customer-proximate manufacturing and operational excellence Manufacturing HQ 96% Average Customer Satisfaction Score3 24 Manufacturing Sites2 Net Sales to Customers Top-Quartile Safety Performance (2024)4 120 Countries & Territories with Sales
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Leadership Team David Sewell President & Chief Executive Officer • <1 Year with Honeywell • 30+ Years of Industry Experience o WestRock o GE o Sherwin-Williams Tina Pierce Chief Financial Officer • 25+ Years with Honeywell • 15+ Years of Industry Experience Jeff Dormo Senior Vice President Refrigerants & Applied Solutions • 8+ Years with Honeywell • 15+ Years of Industry Experience o The Dow Chemical Company Simon Mawson Senior Vice President Electronic & Specialty Materials • ~3 Years with Honeywell • 25+ Years of Industry Experience o Henkel o Solvay o The Dow Chemical Company o Rohm & Haas Wylie Clark Chief Development Officer • 13+ Years with Honeywell • 20+ Years of Industry Experience o Taylor-DeJongh Brian Rudick Senior Vice President General Counsel & Corporate Secretary • 20+ Years with Honeywell • 9 Years of Law Firm Experience o K&L Gates o Law Clerk for PA Supreme Court Chief Justice Jason Clifford Senior Vice President Chief Human Resources Officer • 15+ Years with Honeywell • 35+ Years of Industry Experience o Analog Devices o Frito Lay o DuPont o Aramark Rajeev Aggarwal Senior Vice President Integrated Supply Chain • 15+ Years with Honeywell • 25+ Years of Industry Experience o Arxada o GM o KPMG o Visteon Jackie Grunwald Senior Vice President Chief Information Officer • 15+ Years with Honeywell • 25+ Years of Industry Experience o AdvanSix Johnathan Weatherly Senior Vice President Manufacturing • ~2 Years with Honeywell • 25+ Years of Industry Experience o BASF o Motiva 12 Leadership team a blend of Honeywell heritage and proven industry leaders
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Serve attractive end markets with strong secular trends Grow industry leadership positions Enable independent strategy with a refined operating model Allocate capital with clear priorities and discipline$ Drive value creation with a differentiated growth strategy Unleashing Growth & Value Creation 13
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Growth of Advanced Computing Environmental & Energy Evolution Improving Health Outcomes Personal Safety & Defense • Denser, higher power chips require new materials and next generation thermal management technologies • Regulatory and policy goals require greater energy efficiency and lower carbon intensity • Next-gen medical applications require improved materials across the development value chain • Protective equipment demand driven by increased law enforcement and global military spending Significant Innovation Potential Strong Growth Prospects Solstice Right-to-Win Established Customer Partnerships Serving Attractive End Markets with Strong Secular Trends Semiconductor Materials Thermal Management Cooling & Heating Sustainable Construction Nuclear Energy Medical Packaging Medical Devices & Fibers Lab Sciences Fibers Composites 14
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15 12% CAGR Advanced node (<7nm) demand1 (2025-2030) 9% CAGR HFO demand in North America2 (2025-2030) >GDP Expected demand for LGWP healthcare aerosols3 3X Expected growth in global nuclear capacity by 20504 1 Source: SEMI World Fab Forecast. 2 Source: S&P Global Commodity Insights. 3 GDP growth outlook reference represents GDP growth of relevant geographies of each Solstice segment. 4 Source: Bank of America report. *Lower right image from ConverDyn website.
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Net Sales Growth & Resilient Margins Growth Engine 26.4% Adj. Standalone EBITDA Margin (estimate)2 (2024) 4.4% Net Sales CAGR1 (2017-2024) 1 Financial information for 2022-2024 based on Form 10 carve-out financial statements. Years prior to 2022 based on internal reporting, does not reflect all carve-out adjustments, and is illustrative only. 2 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 3 New NPI relates to new products in existing markets and new and existing products in new markets. Core NPI relates to new products in existing markets that add features, improve performance, or reduce costs. Growing Industry Leadership Positions Expand into Adjacent Markets Invest in Customer- Proximate Manufacturing Grow & Optimize Portfolio Focus on Customer- Partnered Innovation Capture Organic Secular Growth 16 Technology and financial co-development programs drive significant value and efficiency Drive Commercial Excellence New NPI 12% Core NPI 33% Other 55% New Product Related Sales3 (%) (2024)
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HQ R&D R&D & Innovation Footprint 1 17 Innovative and customer-specified technologies underpinned by R&D leadership 4 Research & Development Centers 300+ R&D Technologists & Engineers3 5,700+ Patents issued and pending3 New NPI 42% Core NPI 24% Discovery 22% IP Protection 12% R&D Spend Allocation2 (%) (2024) New NPI Focus Areas • Next-gen refrigerant molecules • Next-gen electronic materials • Armor technology for rest-of- world customers • Battery chemical materials and electrification solutions Net Sales to Customers 1 All information for 2024 unless otherwise noted. Certain locations on map have multiple co-located or nearby facilities. Excludes countries with de minimis sales. 2 New NPI relates to new products in existing markets and new and existing products in new markets. NPI Core relates to new products in existing markets that add features, improve performance, or reduce costs. 3 As of June 30, 2025.
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Innovation & Commercialization Maximize customer value and drive growth Commercial Excellence & Growth Operate best-in-class commercial practices Manufacturing Excellence Drive productivity and cost optimization across the asset base Supply Chain & Logistics Reduce cost to serve and improve service levels Capital Deployment & Optimization Focus on end-to-end project optimization and return on invested capital Refined operating model enables an independent strategy to unleash the full growth potential of Solstice Enabling an Independent Strategy to Unleash Growth Potential 18
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Invest in High- Return Organic Growth Projects Return Excess Capital to Shareholders Accelerate Growth through Selective M&A Maintain Strong Balance Sheet & Liquidity Position Maintain financial flexibility and strong cash flow generation 01 02 03 04 Allocating Capital with Discipline & Clear Priorities 19
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Recent Growth Investments 20 Partnership with Navin Fluorine International (2022) Solstice® zd (LGWP refrigerant & blowing agent) Enhancing global supply capabilities and reducing time-to-market with local knowledge and infrastructure Medical-grade Next-generation Propellant $33 million Baton Rouge facility investment (2023) Facilitating large-scale production to support the commercial launch of LGWP inhaler solution $41 million Baton Rouge facility expansion (2021) Solstice® ze (LGWP refrigerant & propellant) Doubling production capacity to address growing, regulatory-driven demand Strong track record of high-return growth investments in attractive end markets Executing a staged capital deployment to scale 1234yf production capacity (2024) Solstice® yf (LGWP refrigerant) Increasing production capacity to enable the stationary 454B transition and support global automotive needs $40 million automation and copper targets expansion at Spokane site (2024) High Purity Sputtering Targets for Leading Edge Increasing production capacity and integrating automation technologies to improve efficiency, product quality, and flexibility
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Built on solving complex customer challenges through differentiated technology platformsIndustry Leadership Underpinned by strong and resilient secular growth trendsAttractive End Markets Driven by disciplined use of a refined operating modelOperational Excellence Reflects focus on investing in growth while maintaining a strong and flexible balance sheetDisciplined Capital Allocation Strategy Purposeful blend of Honeywell heritage and proven industry experienceExperienced Leadership Team Solstice | An Attractive Investment Proposition Drive value creation with a differentiated growth strategy 21
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Refrigerants & Applied Solutions Jeff Dormo Senior Vice President
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Financials (2024) $1.1 billion Adj. EBITDA 38.9% Adj. EBITDA Margin $2.7 billion Net Sales 3.5% Net Sales Growth Overview of Refrigerants & Applied Solutions Net Sales by Business (2024) 48% 27% 16% 9% Refrigerants Alternative Energy Services Building Solutions & Intermediates Healthcare Packaging 23 63% 23% 14% Europe, Middle East and Africa United States Other International Net Sales by Geography1 (2024) 1 Net sales by geography classified according to their country of origin.
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High-Value Applications Residential cooling Commercial and industrial refrigeration Supermarket refrigeration Food processing Data center cooling Automotive cooling Heat pumps Leading Technology Platforms • Hydrofluoroolefins (HFOs): Solstice® yf, zd, ze • Solstice® HFO Blends • Hydrofluorocarbons (HFCs): Genetron® $1.3 billion Net Sales (2024) Growth Anchored in Demand Trends1 • Data center cooling and heat pump electrification • Regulatory transition to low global warming potential (LGWP) refrigerants • Electrification of auto and commercial vehicles • LGWP transition in emerging auto markets Strong & Resilient Secular Trends Refrigerants Value Creating Differentiators • Leading intellectual property portfolio • Established customer relationships • Strong presence in the U.S. and Europe • Refrigerants businesses strategically focused on recurring aftermarket sales Solstice® 1 Source: S&P Global Commodity Insights. Attractive End Markets Stationary HVAC/R Automotive HVAC/R Data Centers 24 9.2% CAGR HFO demand in North America (2025-2030) 7.8% CAGR HFO demand in Europe (2025-2030)
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Regulations in the U.S. and Europe are driving a transition from HFCs to LGWP HFOs Solstice is already benefiting from this transition in automotive refrigerants and building solutions in developed markets Regulatory Transition to LGWP Refrigerants 30% 15% 34% 23% 12% 3% 70% 50% 80% 0% 20% 40% 60% 80% 100% 2015 2020 2025 2030 2035 2040 1 European Environment Agency. 2 U.S. Environmental Protection Agency. 3 United Nations Environment Programme. HFC Regulatory Phasedown (% of Baseline) EU F-Gas Revision1 U.S AIM Act2 Kigali – A5 Group 13 Kigali – A5 Group 23 25 55% 60% Cooling market dynamics being fueled by regulatory-driven transition
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Stationary Refrigerants Portfolio Mix Going forward, Solstice is well-positioned to benefit from its leadership positions in LGWP refrigerants, particularly in: • Stationary refrigerants in end markets • Automotive refrigerants in emerging geographies Beyond 2025, sustained HFO demand underpins durable long-term growth LGWP Refrigerants Poised for Further Growth 26 >60% Regulatory-driven transition to fuel continued growth of LGWP refrigerants HFO Growth to Offset HFC Decline1 1 Source: S&P Global Commodity Insights. 27% 29% 45% 73% 71% 55% 2022 2023 2024 2025E HFOs HFCs >60% <40% 2022 2025 2028 2031 2034 HFO vs. HFC Demand in North America (Volume) -2.7% CAGR (2022-2035) 2022 2025 2028 2031 2034 HFO vs. HFC Demand in Europe (Volume) HFOs HFCs
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Commercial insulation Precision cleaning Vapor degreasing Appliance insulation Consumer & industrial aerosols High-Value Applications Residential insulation Leading Technology Platforms • Solstice Liquid Blowing Agent and Gas Blowing Agent • Solstice PF Cleaning Solvents and PF-C Flushing Agents • Solstice Propellants • Hydrogen Fluoride (HF) $738 million Net Sales (2024) • Strong focus on green building initiatives reducing carbon intensity via improved insulation • Global sustainability initiatives driving LGWP solutions • Expected growth for blowing agents consistent with GDP growth Strong & Resilient Secular Trends Building Solutions & Intermediates Value Creating Differentiators • Technology leader with a strong global footprint and commercial reach • Superior insulation from blowing agents results in lower energy usage • Leading technical service support providing differentiated solutions for customers • Customer intimacy with global key accounts driving insights into unmet needs Solstice® 27 Attractive End Markets High-performance Insulation Consumer & Industrial Aerosols
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Metered dose inhalers High-Value Applications Thermoformed healthcare packaging Leading Technology Platforms • Medical-grade next-generation propellant • Aclar® and Aclar® Accel high- barrier packaging materials $235 million Net Sales (2024) • Leveraging expertise to meet growing need for LGWP inhaler solutions • Rising demand for clear, ultra-high moisture barrier pharma packaging • Pharmaceutical end market is steady and defensive • Expected demand for high-barrier, high-clarity packaging materials to outpace GDP growth1 • Expected demand for LGWP healthcare aerosols to outpace GDP growth1 Strong & Resilient Secular Trends Healthcare Packaging Value Creating Differentiators • Protective films achieve highest moisture barrier of any clear thermoplastic film while lowering packaging costs for customer s • Packaging materials have been used for well-known over-the-counter and prescription medications for over 50 years • Global leader in lower GWP medical aerosols, leveraging fluorinated chemistries expertise Solstice® 1 GDP growth outlook reference represents GDP growth of relevant geographies of each Solstice segment. Attractive End Markets PharmaceuticalMedical Aclar® 28 Inhalation therapy Blister packaging
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Customer Case Study | LGWP Inhaler Solution AstraZeneca’s portfolio of medicines delivered by pMDIs will transition to Solstice’s medical- grade next-generation propellant Solstice developed the LGWP inhaler solution in collaboration with AstraZeneca The solution will reduce greenhouse gas emissions by 99.9% compared to the propellant it replaces, addressing regulatory transition 29 Customer-partnered innovation to solve a complex challenge in the attractive healthcare propellant market
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Spotlight on Growth Investment | Medical Propellant Baton Rouge investment to build cGMP 1234ze(E) large-scale manufacturing to commercialize Solstice’s medical-grade next-generation propellant • Facility to produce near-zero global warming potential medical propellant for use in respiratory inhalers, accelerating climate-conscious healthcare innovation and deepening collaboration with pharma leaders Empowers pharmaceutical companies to meet sustainability and regulatory goals – without compromising patient care $33 million investment to capture a $500 million total addressable market1 30 $33 million in Capex with Compelling ROI Essential healthcare applications drive climate-forward innovation and align with secular growth trends 1 Total addressable market based on internal estimates.
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• Domestic localization efforts and heightened energy security requirements in nuclear power generation • Demand for nuclear energy generation expected to grow in line with GDP over the long term $446 million Net Sales (2024) Differentiators • Sole domestic (U.S.) provider of UF6 conversion services • 70+ year operating history • Operates under a U.S. Nuclear Regulatory Commission (NRC) license, which is valid until 2060 • Strong demand with favorable long-term industry dynamics • Low price volatility due to multi-year sales agreements AES Overview AES represents Solstice’s 100% equity ownership in the Metropolis Works uranium hexafluoride (UF6) conversion facility and Solstice’s 50% equity interest in ConverDyn1, a joint venture partnership with General Atomics formed in 1992. • ConverDyn purchases and markets 100% of the UF6 conversion services from Metropolis Works • ConverDyn is compliant with all U.S. export laws and sanctions ConverDyn Ownership Structure UF6 Conversion Services Metropolis ConverDyn 50% 100% 50% Alternative Energy Services 1 Solstice is the primary beneficiary and consolidates the joint venture. 31 ~$2 billion Order Backlog (as of June 30, 2025)
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Nuclear Fuel Cycle Natural UF6 Uranium (U3O8) Enriched UF6 Fuel (UO2) ConverDyn provides nuclear power plants and utilities with U3O8 and UF6 conversion services produced by Solstice’s Metropolis Works UF6 conversion facility Mining M UF6 Conversion C Enrichment E Fabrication F Overview of the Nuclear Fuel Cycle & Industry Landscape 32 Recent Developments $10 trillion Potential Market Opportunity for Nuclear Energy1 1 Source: Bank of America report. Big Tech contracts inject life into new nuclear The Audacious Reboot of America’s Nuclear Energy Program ‘It’s Time for Nuclear’ to Meet Growing U.S. Power Needs, Trump Declares US Looks to Boost Strategic Uranium Reserve for Nuclear Power $4 trillion Expected Investment in Nuclear Infrastructure in Next 25 Years1 3X Expected Growth in Global Nuclear Capacity by 20501 Metropolis / ConverDyn • Increased demand for critical products and conversion services used in nuclear power generation is driven by domestic localization and heightened energy security requirements • Benefits from U.S. domestic policy, including Executive Order 14302, §3, ordering “a plan to expand domestic uranium conversion capacity”
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Electronic & Specialty Materials Simon Mawson Senior Vice President
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Financials (2024) $201 million Adj. EBITDA 19.2% Adj. EBITDA Margin $1.0 billion Net Sales 2.8% Net Sales Growth Overview of Electronic & Specialty Materials Net Sales by Business (2024) 36% 18% 46% Electronic Materials Research & Performance Chemicals Safety & Defense Solutions 54% 25% 21% Europe, Middle East and Africa United States Other International Net Sales by Geography1 (2024) 34 1 Net sales by geography classified according to their country of origin.
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High-Value Applications Cooling of central processing units, graphics processing units, and EV battery inverters Advanced semiconductor manufacturing Advanced packaging Advanced displays Leading Technology Platforms • Sputtering targets • Electronic polymers • High-purity etchants and wash solvents • Heat spreaders and thermal interface materials $381 million Net Sales (2024) • Demand for smaller, more powerful, and energy-efficient electronic devices • Widespread adoption of electric vehicles (EVs), advanced driver assistance systems, and vehicle automation and connectivity • Geopolitics and onshoring U.S. chip production Strong & Resilient Secular Trends Electronic Materials Value Creating Differentiators • 50+ years of being a key supplier to the industry • Serve leading-edge fabricators in the semiconductor industry due to quality and reliability • Co-development with semiconductor manufacturers, Tier 1 suppliers, and original equipment manufacturers Attractive End Markets Semiconductors Data Centers 35 Growth Anchored in Demand Trends1 Nodes CAGR (2025-2030) Advanced Nodes (<7nm) 12% Legacy Nodes (>7nm) 4% 1 Source: SEMI World Fab Forecast.
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Spotlight on the Electronic Materials Value Chain 36 Doping Patterning DepositionPlanarizing Etching Cleaning Wafer Process Cycle Anti-reflective coatings, Gap Fillers PVD Targets Finished Wafer Blank Wafer TIM 2 Heat spreader Heat sink TIM 1 Si Die Current ESM Offerings Chip Packaging and AssemblyChip Manufacturing Etchant Acids and Bases Single Chip (cut out of finished wafer)
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Strong End Market Demand for Electronic Materials 37 Wave of AI Investment $630+ billion in U.S. semiconductor supply chain investments announced since 20201 New Applications AI race accelerating demand as new applications move into high volume manufacturing U.S. Reshoring U.S. investment and industrial policy supporting domestic leadership in advanced semiconductor manufacturing 1 Source: Semiconductor Industry Association. 2 Source: SEMI World Fab Forecast. Favorable market dynamics driving long-term demand Robust Demand Outlook Demand for advanced nodes (<7nm) set to grow at 12% CAGR2 over next five years
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Customer Case Study | Sputtering Targets Solstice is working with a leading semiconductor foundry company to develop next-generation sputtering targets for leading edge nodes, investigating new metals to enhance the power and performance of future technology nodes Solstice is engaged with semiconductor partners to support this and other path- finding R&D initiatives 38 Customer-partnered innovation to solve a complex challenge in the attractive semiconductor market
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Spotlight on Growth Investment | Semiconductors Spokane investment to enhance site capacity with increased automation • New production lines to meet increased demand • Increased automation to drive greater efficiency, reduce risks of unplanned downtime, and streamline production process Supported by significant demand growth expected for leading edge chips (<3nm), leading HBM chips, and advanced packaging 39 $200 million in Capex with Compelling IRR Customer-proximate manufacturing and innovative investments enable growing industry leadership positions
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High-Value Applications Leading Technology Platforms • Spectra Shield® ballistic materials, primarily sold through Spectra® fiber brand$186 million Net Sales (2024) • U.S. military demand for continued advancements in state-of- the-art armor solutions • Demand for lower cost alternatives outside of U.S. • Geopolitical tension driving record defense spending Strong & Resilient Secular Trends Safety & Defense Solutions Value Creating Differentiators • Leading position in military, law enforcement, and safety armor due to lighter weight and best-in-class performance • Benefits from Berry Amendment as a domestic producer • Technology leader in this industry • Deep government relationships and prime supplier co- development 1 Source: United Nations. 2 Source: S&P Global Commodity Insights. 3 UHMWP stands for ultra-high molecular weight polyethylene. Attractive End Markets Personal protective gear Vehicular armor Medical fibers 40 Growth Anchored in Demand Trends 5.1% CAGR2 Global UHMWP3 fiber demand in medical applications (2025-2030) 4.7% CAGR1 Global military expenditure (2025-2030) Defense Medical
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Customer Case Studies | Spectra® 41 Customer-partnered innovation to solve complex challenges in the critical defense market Over the past 2 years, Spectra material has been used as a key component in >100 military and law enforcement ballistic protection programs across the European and Asian markets Foreign Military & Law Enforcement Programs EU Military >250K Helmets outfitted with Spectra Shield® Asia Military >500K Plates, helmets, & vests outfitted with Spectra Shield® Safariland, a leading U.S. law enforcement armor manufacturer, has been Spectra’s strategic partner for over 20 years Spectra Shield® and Gold Shield® products are utilized across entire Safariland portfolio 55 officers saved in 2025 YTD and 2,253 officers saved in total The most recent supply agreement extends through 2028
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High-Value Applications Oral care Brazing Metal surface treatment DNA and RNA assays Karl Fischer titration Chromatographic and spectroscopic applications Leading Technology Platforms • Hydranal reagents • High-purity solvents through the Fluka, Burdick & Jackson, Biosyn and Chromasolv brands • Fluorine-based salts, inorganic salts and phosphors, fluorescent organic materials • Low molecular weight polyethylene-based copolymers and emulsions $482 million Net Sales (2024) • Increasing therapeutic applications in genetic diseases, cancer, and personalized medicine, alongside advancements in synthesis technology and growing R&D investments • Customer demand for more sustainable solutions • Growth in battery electric vehicles Strong & Resilient Secular Trends Research & Performance Chemicals Value Creating Differentiators • Consistent highest quality, with specialized packaging and technical support • Hydranal is the leading world-wide brand in Karl Fischer titration • Breadth of portfolio with flexible manufacturing capabilities • End market/application domain expertise Authentication technologies Pictures to be finalized 42 Chemical ConstructionPharmaceutical Attractive End Markets
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Business Synergies & Growth Strategy
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Growth of Advanced Computing Environmental & Energy Evolution Improving Health Outcomes Personal Safety & Defense • Denser, higher power chips require new materials and next generation thermal management technologies • Regulatory and policy goals require greater energy efficiency and lower carbon intensity • Next-gen medical applications require improved materials across the development value chain • Protective equipment demand driven by increased law enforcement and global military spending Significant Innovation Potential Strong Growth Prospects Solstice Right-to-Win Established Customer Partnerships Serving Attractive End Markets with Strong Secular Trends Semiconductor Materials Thermal Management Cooling & Heating Sustainable Construction Nuclear Energy Medical Packaging Medical Devices & Fibers Lab Sciences Fibers Composites 44
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Spotlight on Business Synergies | Thermal Management 45 Server Rack Density (kW/Rack) Chip Power (W) …and in the Data Center Leading supplier of thermal interface materials (Phase Change Materials & Gels) Differentiated heat spreader manufacturing capabilities Perspective ▪ Increasing Thermal Design Power driving demand for higher performing thermal management solutions ▪ Transition from air to liquid to improve performance, sustainability, and efficiency goals Thermal Management at the Chip Level… LGWP refrigerants for use in chillers, heat pumps, and computer room ACs to provide air cooling to IT hardware Air Cooling Actively developing a 2- phase direct-to-chip fluid using a blend of existing molecules Direct to Chip Discovery program to develop proprietary immersion cooling fluid Immersion Partnering with Customers Aligned with Secular Growth Trends Solving Complex Challenges Growing Industry Leadership Positions
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Invest in Customer-Proximate Manufacturing • Maintain and upgrade world-class production capabilities • Leverage partnerships for new large-scale production facilities • Drive local product adoption and customer proximity • Strict focus on high IRR projects Spotlight on Growth Strategy Net Sales Growth & Resilient Margins Growth Engine Capture Organic & Adjacent Market Opportunities • Targeted growth in margin accretive areas • Value-added product portfolio expansion • Focus on attractive end markets with strong secular trends Grow & Optimize Portfolio • Broaden portfolio • Access differentiated technologies • Expand exposure in high-growth markets 46 Expand into Adjacent Markets Invest in Customer- Proximate Manufacturing Grow & Optimize Portfolio Focus on Customer- Partnered Innovation Capture Organic Secular Growth Drive Commercial Excellence
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Innovation & Commercialization Maximize customer value and drive growth Commercial Excellence & Growth Operate best-in-class commercial practices Manufacturing Excellence Drive productivity and cost optimization across the asset base Supply Chain & Logistics Reduce cost to serve and improve service levels Capital Deployment & Optimization Focus on end-to-end project optimization and return on invested capital Refined operating model enables an independent strategy to unleash the full growth potential of Solstice Enabling an Independent Strategy to Unleash Growth Potential 47
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Financial Summary Tina Pierce Chief Financial Officer
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Resilient Sales Growth 4.4% Net Sales CAGR1 (2017-2024) Best-in-Class Margin Profile 26.4% Adj. Standalone EBITDA Margin (estimate)2 (2024) Strong Cash Conversion 70.3% Cash Conversion2,4 (2024) Strong Balance Sheet 1.5x Net Leverage3 (June 30, 2025) BB+ Fitch BB+ S&P Ba1 Moody’s Compelling Financial Profile 1 Financial information for 2022-2024 based on Form 10 carve-out financial statements. Years prior to 2022 based on internal reporting, does not reflect all carve-out adjustments, and is illustrative only. 2 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 3 Net leverage ratio based on June 30, 2025, Net Debt expected from the transaction and Adjusted Standalone EBITDA (estimate). Refer to appendix for historical reconciliations of relevant non-GAAP financial metrics to the most directly comparable GAAP measure. 4 Cash conversion defined as (Adj. Standalone EBITDA (estimate) – Capex)/Adj. Standalone EBITDA (estimate). Compelling Return Profile 21.5% Return on Invested Capital2 (2024) 49
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Resilient Sales Growth RAS 72% ESM 28% Net Sales by Segment Net Sales by Geography1 2024 2024 U.S. 61%EMEA 23% Other 16% Net Sales CAGR (2017-2024) 4.4% 3.9% Peer Median3 ~90% U.S. Sales Manufactured in U.S. ~60% Sales Manufactured in Same Region ~65% of Supplier Spend in the U.S. from U.S. Suppliers Net Sales1 ($ in billions) $2.8 $2.8 $2.8 $2.7 $3.1 $3.6 $3.6 $3.8 $3.8 2017 2018 2019 2020 2021 2022 2023 2024 LTM June 30, 2025 4.4% CAGR 50 Above-market growth fueled by unique technology platforms and attractive end markets 2 1 Net sales by geography classified according to their country of origin. 2 Financial information for 2022-2024 based on Form 10 carve-out financial statements. Years prior to 2022 based on internal reporting, does not reflect all carve-out adjustments, and is illustrative only. 3 Reflects median 2017-2024 Net Sales CAGRs of Avient, Chemours, Eastman, Element, Entegris, Materion, and RPM calculated with data provided by FactSet.
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1 Shows Adjusted Standalone EBITDA (estimate) and Adjusted Standalone EBITDA Margin (estimate), which are non-GAAP measures. Refer to appendix for historical reconciliations of relevant non-GAAP financial metrics to the most directly comparable GAAP measure. 2 Reflects median 2024 Adj. EBITDA Margins of Avient, Chemours, DuPont, Eastman, Element, Entegris, Materion, and RPM calculated with data provided by FactSet. 3 Excludes standalone adjustments and corporate costs. 4 Average of trailing three years of refrigerants aftermarket sales. 5 NPI relates to new products in existing markets, new and existing products in new markets, and new products in existing markets that add features, improve performance, or reduce costs. Strong Adj. EBITDA Performance Adj. Standalone EBITDA & Adj. Standalone EBITDA Margins1 ($ in millions and as a % of Net Sales) 50% Refrigerants Sales in Recurring Aftermarket Segment4 45% Customer- Specified Solutions (% SKUs in ESM) 45% New Product (NPI) Related Sales5 >10 yrs Average Customer Tenure $1,058 $1,049 Segment Adj. EBITDA & Adj. EBITDA Margins3 ($ in millions and as a % of Net Sales) $201 $218 RAS ESM Adj. Standalone EBITDA Margins1 (2024) 26.4% 17.8% Peer Median2 51 Best-in-class margin profile driven by innovation leadership and product portfolio 27%26% 39% 39% 19% 20% $995 $1,015 2024 LTM June 30, 2025 2024 LTM June 30, 2025 2024 LTM June 30, 2025
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Near-Term Transition; Long-Term Margin Expansion Opportunity 1 Shows Adjusted Standalone EBITDA Margin (estimate), which is a non-GAAP financial measure. 52 Resilient ~25% Adj. EBITDA margins1 expected in 2025E with pathway to expand Long-Term Margin Expansion Opportunity Standalone costs optimization; TSAs roll off Operating model execution, innovation Standalone costs, including 12-month transition services agreement (TSAs) Opportunistic Alternative Energy Services transactions in 1H 2024 Other transitory cost items Manufacturing automation & high-return debottlenecks Near-Term Transition
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Strong Balance Sheet 1 Estimate; subject to change. 2 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 3 Net leverage ratio based on pro forma capitalization and LTM June 30, 2025, Adj. Standalone EBITDA (estimate). 4 $400mm cash to balance sheet (from uses) and $50mm of foreign cash. The actual total cash at spin close remains subject to change. 1.5X Net Leverage Ratio2,3 BB+ Fitch BB+ S&P Ba1 Moody’s $1 billion Term Loan B (SOFR + 175 bps) (estimate) $1 billion Revolving Credit Facility $1 billion 5.625% Senior Notes due 2033 $1.5 billion1 Cash Distribution $450 million1 Cash4 on the Balance Sheet Strong liquidity position and financial flexibility 53
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2022 2023 2024 2025E Medium-Term Maintenance Growth, Productivity, & Other Total Clear Capital Expenditures Roadmap Supporting Growth Capital Expenditures ($ in millions and as a % of Net Sales) 7.1% 8.2% 7.9% Mid Single Digit % of Net Sales ~10% $365-$415 $296$299 $254 54 Higher near-term capital intensity to drive medium-term growth
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Cash Conversion Reflects Growth Investment Profile Cash Conversion1,2,3 ($ in millions) 55 Cash conversion reflects investment in compelling growth opportunities $296 $303 $699 $712 2024 LTM June 30, 2025 2025E Capex Adj. Standalone EBITDA (estimate) - Capex $390 (Midpoint) $560 (Midpoint) Medium-Term 1 Financial information for 2024 is based on Form 10 carve-out financial statements. 2 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 3 Cash conversion defined as (Adj. Standalone EBITDA (estimate) – Capex)/Adj. Standalone EBITDA (estimate). Capex (% of Net Sales) 7.9% 8.1% ~10% Mid Single Digits Cash Conversion 70.3% 70.1% ~60% >70%
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Maintain financial flexibility and strong cash flow generation Manufacturing expansion, innovation funding, and productivity enhancements Invest in High- Return Organic Growth Projects Return Excess Capital to Shareholders Accelerate Growth through Selective M&A Maintain Strong Balance Sheet & Liquidity Position 01 02 03 04 Conservative leverage consistent with strong credit rating profile Focused on bolt-on opportunities within high-growth markets Regular dividends anticipated with opportunistic share repurchases Allocating Capital with Discipline & Clear Priorities 56
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Financial Guidance 1 571 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 2 Shows Adjusted Standalone EBITDA Margin (estimate), which is a non-GAAP measure. Refer to appendix for historical reconciliations of relevant non-GAAP financial metrics to the most directly comparable GAAP measure. 3 Additional standalone and public company costs expected in 2025 and onwards. 4 Cash conversion defined as (Adj. Standalone EBITDA (estimate) – Capex)/Adj. Standalone EBITDA (estimate). 2024 2025E Net Sales ($ in millions) $3,770 $3,750 - $3,850 Adj. Standalone EBITDA Margin (estimate)1 (%) 26.4%2 ~25%3 Capex ($ in millions) $296 $365 - $415 Medium-Term Financial Framework Low to Mid Single Digit % Organic Net Sales CAGR Mid Single Digit % Adj. Standalone EBITDA CAGR >70% Cash Conversion1,4 Disciplined Capital Deployment
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Resilient Sales Growth 4.4% Net Sales CAGR1 (2017-2024) Best-in-Class Margin Profile 26.4% Adj. Standalone EBITDA Margin (estimate)2 (2024) Strong Cash Conversion 70.3% Cash Conversion2,4 (2024) Strong Balance Sheet 1.5x Net Leverage3 (June 30, 2025) BB+ Fitch BB+ S&P Ba1 Moody’s Compelling Financial Profile 1 Financial information for 2022-2024 based on Form 10 carve-out financial statements. Years prior to 2022 based on internal reporting, does not reflect all carve-out adjustments, and is illustrative only. 2 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 3 Net leverage ratio based on June 30, 2025, Net Debt expected from the transaction and Adjusted Standalone EBITDA (estimate). Refer to appendix for historical reconciliations of relevant non-GAAP financial metrics to the most directly comparable GAAP measure. 4 Cash conversion defined as (Adj. Standalone EBITDA (estimate) – Capex)/Adj. Standalone EBITDA (estimate). Compelling Return Profile 21.5% Return on Invested Capital2 (2024) 58
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Q&A
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| A Differentiated Advanced Materials Company Clear right-to-win built on a rich 130+ year history of solving complex customer challenges Underpinned by strong secular trends in cooling, advanced computing, safety, nuclear, and healthcare A refined operating model and independent strategy to unleash our full growth potential Strong balance sheet enabling investments to accelerate growth Purposeful organizational design reflects a blend of Honeywell heritage and proven industry leaders 60
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Appendix
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Strong 1H 2025 Financial Performance $1,950 $1,930 ($108) $70 $16 $2 1H 2024 AES Transactions Volume Pricing FX / Mix / Other 1H 2025 Net Sales1,2 ($ in millions) Adj. Standalone EBITDA (estimate)1,2,3 ($ in millions and as a % of Net Sales) $514 $533 ($42) $32 $16 $13 1H 2024 AES Transactions Volume Pricing Cost / Other 1H 2025 1 Financial information based on Form 10 carve-out financial statements. 2 Adjustments made to exclude 3 opportunistic AES transactions (2 in Q1 2024 and 1 in Q2 2024) totaling $108 million in net sales, which had a $42 million impact on Adj. EBITDA. 3 Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 120 bps Adj. Standalone EBITDA (estimate) Margin3 Improvement 27.6% Adj. Standalone EBITDA (estimate) Margin3 200 bps Adj. Standalone EBITDA (estimate) Margin3 Improvement Excluding AES Transactions 63 26.4% 27.6% 2 2
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Adjusted EBITDA Reconciliation | Standalone Costs 1 Financial information based on Form 10 carve-out financial statements. 2Non-GAAP financial measure. Historical reconciliations of non-GAAP financial measures provided in the appendix of this presentation. 3Represents an estimate of the incremental run-rate costs expected for Solstice to independently operate new functions required for a public company, including, for example, incremental costs in corporate functions such as IT, finance, and legal, as well as operational functions like procurement and supply chain. 4Represents adjustments related to transition service agreements (TSAs) for IT support services and adjustments to employee compensation, as well as a trademark license agreement. 5For Recurring Standalone Cost Adjustment and Other, last twelve months ended June 30, 2025, are based on 2H 2024 adjustments calculated as 50% of full year 2024 adjustments. 64 Adj. EBITDA & Adj. EBITDA Margins ($ in millions) (2024) $1,098 $995 ($44) ($59) Adjusted EBITDA Recurring Standalone Cost Adjustment TSA Costs, New Compensation Agreements & Other Adjusted Standalone EBITDA (estimate) $1,108 $1,015 ($50) ($43) Adjusted EBITDA Recurring Standalone Cost Adjustment TSA Costs, New Compensation Agreements & Other Adjusted Standalone EBITDA (estimate) Adj. EBITDA & Adj. EBITDA Margins ($ in millions) (LTM June 30, 2025) Standalone costs expected to gradually decrease and stabilize (Standalone costs largely G&A with minimal impact from COGS and sales & marketing) Opportunity for margin expansion as TSA services are replaced ~$30 million of TSA costs estimated for a duration of ~12 months 1,2 3 4 1,2 1,2 3,5 4,5 1,2 29.1% 26.4% 27.1%29.5%
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Deep Dive into Raw Materials Basket Key Materials (% of Total Supplier Spend) Chlorinated Organics SparMetals Other Chemicals Packaging Olefins Specialty Metals Rest of the Materials Diversified supply base with no one material >20% of supplier spend Global supply network provides insulation from macroeconomic headwinds Blend of fixed/market pricing and long-term contracts ensures reliable raw material supply 65 ~$1 billion Total Supplier Spend1 (2024) 1 Excludes HFO & HFC supply arrangements
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66 Sources: Solstice Form 10. Notes: Excludes all standalone and pro forma adjustments. Historical financial information on this slide may not foot because of rounding. 1 Opportunistic Alternative Energy Services transactions of $108mm net sales with $42mm EBITDA impact. ($ in millions) 2022A 2023A 2024A H1 2024A H1 2025A RAS Net Sales $2,378 $2,629 $2,721 $1,445 $1,392 %YoY Growth 21.4% 10.5% 3.5% (3.7)% ESM Net Sales $1,209 $1,020 $1,049 $505 $538 %YoY Growth 10.4% (15.7)% 2.8% 6.5% Total Net Sales $3,587 $3,649 $3,770 $1,950 $1,930 %YoY Growth 17.5% 1.7% 3.3% (1.0)% (-) COGS $(2,184) $(2,366) $(2,464) $(1,281) $(1,248) Gross Profit $1,403 $1,283 $1,305 $669 $682 % Margin 39.1% 35.2% 34.6% 34.3% 35.3% (-) Research & Development $(79) $(81) $(83) $(41) $(45) (-) Selling, General & Administrative $(357) $(378) $(398) $(199) $(198) Operating Income $967 $823 $825 $429 $439 % Margin 27.0% 22.6% 21.9% 22.0% 22.7% (+/-) Other Expense / (Income) $(3) $6 $(15) $3 $(49) (-) Interest and Other Financial Charges $(21) $(16) $(13) $(7) $(3) Income before Taxes $943 $814 $797 $425 $387 % Margin 26.3% 22.3% 21.1% 21.8% 20.1% (-) Income Tax Expense $(211) $(195) $(192) $(101) $(148) Net Income $732 $619 $605 $324 $239 Cash Flows from Operating Activities $759 $760 $842 $364 $310 Capital Expenditures $254 $299 $296 $131 $138 Historical Financials 0.4% excl. opportunistic1 4.8% excl. opportunistic1
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The following information provides definitions and historical reconciliations of certain non-GAAP financial measures presented in this presentation to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (“GAAP”). Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Solstice Advanced Materials’ business. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Standalone EBITDA (estimate), and Adjusted Standalone EBITDA margin (estimate) We define Adjusted EBITDA as net income excluding income taxes, depreciation, amortization, interest and other financial charges, other expense, stock compensation expense, pension and other postretirement income (expense), transaction-related costs, repositioning charges, asset retirement obligation accretion, and certain other items that are otherwise of an unusual or non-recurring nature (including but not limited to impairment charges, litigation and insurance settlements, and gains and losses on disposal of assets). We define Adjusted Standalone EBITDA (estimate) as Adjusted EBITDA less estimated recurring and ongoing costs required to operate a new independent public company, and autonomous entity adjustments as well as adjustments for certain other employee compensation expense for employees that have historically been shared with other Honeywell businesses and will be transferred to the Company in connection with the spin-off. We define Adjusted Standalone EBITDA Margin (estimate) as Adjusted Standalone EBITDA (estimate) divided by Net sales. We believe these measures are useful to investors as they provide greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as understanding ongoing operating trends. Adjusted Standalone EBITDA (estimate) – capex, and cash conversion We define Adjusted Standalone EBITDA (estimate) - capex as Adjusted Standalone EBITDA (estimate) less capital expenditures. We define cash conversion as Adjusted Standalone EBITDA (estimate) - capex divided by Adjusted Standalone EBITDA (estimate). We believe these measures are useful to investors and management as a measure of cash generated by operations that can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. These measures can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity. Net debt, total leverage ratio and net leverage ratio We define net debt as total debt less cash. We define total leverage ratio as total debt divided by Adjusted EBITDA. We define net leverage ratio as net debt divided by Adjusted EBITDA. For purposes of showing total leverage ratio and net leverage ratio as expected from this Transaction, we use LTM Adjusted Standalone EBITDA (estimate) instead of Adjusted EBITDA. We believe these measures are useful to investors and management in understanding our overall financial condition. Return on Invested Capital We define Return on Invested Capital as Net Operating Profit After Taxes ("NOPAT") (which is defined as Standalone Adjusted EBITDA (estimate), less depreciation and amortization, and tax effected), divided by invested capital, which is calculated as debt less cash and cash equivalents, plus equity, each as calculated on a pro-forma basis as of June 30, 2025, after giving effect to the spin-off and related financing transactions. We believe that return on invested capital offers valuable insight to management, investors, analysts, and other stakeholders as a measure of how effectively the Company generates income from the capital provided by shareholders and creditors. Non-GAAP Financial Measures 67
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68 Notes: Historical financials as per Form 10. * Non-GAAP financial measures. 1 Combined net income, incl. non-controlling interest. 2 Represents Other expense excluding Equity income of affiliated companies, which is included in Adjusted EBITDA. 3 Including but not limited to impairment charges, litigation and insurance settlements, and gains and losses on disposal of assets. 4 Represents estimated recurring and ongoing costs required to operate new functions required for a public company, such as external reporting, internal audit, treasury, investor relations, board of directors and officers, stock administration, and expanding the services of existing functions such as information technology, finance, supply chain, human resources, legal, tax, facilities, branding, security, government relations, community outreach, and insurance. 5 Represents autonomous entity adjustments primarily related to Transition Service Agreements and adjustments for new compensation agreements for new and existing executives and certain other employee compensation expense for employees that have historically been shared with other Honeywell businesses and will be transferred to the Company in connection with the Spin-Off. For Recurring Standalone Cost Adjustment and Other, LTM 6/30/25 and 1H 2024 are based on 2H 2024 adjustments calculated as 50% of full year 2024 adjustments. ($ in millions) 2022A 2023A 2024A LTM 6/30/25 1H 2024 1H 2025 Total Net Sales $3,587 $3,649 $3,770 $3,750 $1,950 $1,930 Net Income (GAAP)1 $732 $619 $605 $520 $324 $239 Income Tax Expense 211 195 192 239 101 148 Depreciation 146 170 175 196 84 105 Amortization 7 51 42 25 28 11 Interest and Other Financial Charges 21 16 13 9 7 3 EBITDA* $1,117 $1,051 $1,027 $989 $544 $506 Other Expenses2 24 11 34 86 7 59 Stock Compensation Expense 17 18 17 20 9 12 Other Non-recurring Items3 (23) 1 10 3 1 (6) Asset Retirement Obligation Accretion 2 1 2 2 1 1 Transaction-related Costs 3 1 4 4 2 2 Pension and Other Postretirement Expense 1 2 2 2 1 1 Repositioning Charges 2 5 2 2 - - Adjusted EBITDA* $1,143 $1,090 $1,098 $1,108 $565 $575 % Adjusted EBITDA Margin* 31.9% 29.9% 29.1% 29.5% 29.0% 29.8% ($ in millions) 2024A LTM 6/30/25 1H 2024 1H 2025 Adjusted EBITDA* $1,098 $1,108 $565 $575 % Adjusted EBITDA Margin* 29.1% 29.5% 29.0% 29.8% Recurring Standalone Cost Adjustment4 (44) (50) (22) (28) Other5 (59) (43) (30) (14) Adjusted Standalone EBITDA (estimate)* $995 $1,015 $514 $533 % Adjusted Standalone EBITDA Margin (estimate)* 26.4% 27.1% 26.4% 27.6% Reconciliation of Adjusted EBITDA Historical Adjusted EBITDA* Adjusted Standalone EBITDA (estimate)*
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69 ($ in millions) 2024A LTM 6/30/2025 Adjusted EBITDA (non-GAAP) $1,098 $1,108 Transaction Accounting Adjustments1 (44) (50) Autonomous Entity Adjustments2 (59) (44) Adjusted Standalone EBITDA (estimate) (non-GAAP) $995 $1,015 Less: Capex (296) (303) Adjusted Standalone EBITDA (estimate) - Capex (non-GAAP) $ 699 $ 712 Cash Conversion (non-GAAP) 70.3% 70.1% Reconciliation of Adjusted Standalone EBITDA (estimate) – Capex and Calculation of Cash Conversion 1 Represents estimated recurring and ongoing costs required to operate new functions required for a public company not already included in the transaction and autonomous entity adjustments.2 Represents autonomous entity adjustments and adjustments for certain other employee compensation expense for employees that have historically been shared with other Honeywell businesses and will be transferred to the Company in connection with theSpin-Off.
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70 ($ in millions) Expected from transaction Debt Term Loan B due 2032 $ 1,000 Other Unsecured Debt due 2033 1,000 Total Debt $ 2,000 Less: Cash and Cash Equivalents (450) Net Debt (non-GAAP) $ 1,550 LTM 6/30/25 Adjusted Standalone EBITDA (estimate) (non-GAAP) $ 1,015 Total Leverage Ratio (non-GAAP) 2.0 x Net Leverage Ratio (non-GAAP) 1.5 x Reconciliation of Debt and Leverage Ratios
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Reconciliation of Return on Invested Capital 71 ($ in millions) NOPAT1 for the year ended December 31, 2024 Net Income (GAAP) $ 605 Income tax expense 192 Depreciation 175 Amortization 42 Other expense 34 Stock compensation expense 17 Interest and other financial charges 13 Other non-recurring items 10 Transaction costs 4 Asset retirement obligation accretion 2 Pension and other postretirement expense 2 Repositioning charges 2 Adjusted EBITDA (non-GAAP) $ 1,098 Pro Forma Adjustments (59) Management Adjustments (44) Standalone Adjusted EBITDA $ 955 Less - Depreciation & Amortization (217) Standalone Adjusted EBIT $ 778 Less - Tax effects of Adj. EBIT (196) NOPAT 1 $ 582 Pro-forma Invested Capital as of June 30, 2025 2 Total Pro-forma Debt 1,967 Total Pro-forma Cash & Cash Equivalents (450) Total Net Debt $ 1,517 Total Pro-forma Equity 1,189 Total Invested Capital $ 2,706 Total Return on Invested Capital 21.5% 1 NOPAT represents net operating profit after tax. 2 Per Pro-Forma financial statements in Form 10.