Lanxess Ag · XETR:LXS
Lanxess — Lanxess Ag Ord — Q4 2025 Earnings Presentation
40 slides from Lanxess's earnings presentation, Mar 19, 2026
Slide 1: LANXESS – Q4 2025 results
LANXESS – Q4 2025 results March 19, 2026 Matthias Zachert, CEO Oliver Stratmann, CFO INTERNAL
Slide 2: Safe harbor statement
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
Slide 3: Agenda
Agenda 1 Leveraging a strong platform for earnings recovery 2 We are taking action 3 Review Q4 2025 and outlook 4 Financial and business details Q4 2025 3
Slide 4: LANXESS built a portfolio with three strong pillars
LANXESS built a portfolio with three strong pillars – laying the strategic foundation for future growth Portfolio transformation achieved in a timely and focused manner ▪ Leading among the top 3 globally in Consumer Protection growing niche markets ▪ Balanced portfolio without dependency on single i
Slide 5: Balanced portfolio with strategic focus on consumer related markets
Balanced portfolio with strategic focus on consumer related markets Overall balanced portfolio structure with strong mid-term upcycle potential Sales share in % Consumer & 10 Animal Care 1 20 ▪ Strategic M&A backed growth into 1 15 consumer related end markets Mobility 40 2 ▪ Mobility (more cyclical
Slide 6: No Envalior acquisition by Advent in 2026, unconditional right to sell 50% in 2028
No Envalior acquisition of Advent in 2026, however LXS with unconditional right to sell 50% of its stake in 2028 Contractually fixed calculation of valuation for all years Defined next steps 2027 and 2028: 2028 2027 2026 LANXESS’s unconditional* right to sell 50% Advent’s right to acquire of stake;
Slide 7: Rating downgrade has very limited financial impact
Rating downgrade has very limited financial impact →▪ Secured financing with fixed coupons around ~1% →▪ ~€1 m additional annual costs (commitment fees) →▪ No financial covenants →▪ Envalior: Future monetization opportunity remains! Rating adjusted, fundamentals unaffected: Clear focus on operationa
Slide 8: Solid liquidity and sufficient sources at hand to cover refinancing
Solid liquidity and sufficient sources at hand to cover refinancing Cash/liquidity Bonds Credit facilities ▪ Market is highly liquid €497 m ▪ LANXESS with solid track €1.35 bn as of record in fixed income market available FY 2025 (fully undrawn) 8 Refinancing of October 2026 maturity is ensured ✓
Slide 9: Iran war: Immanent risks hard to predict
Iran war: Immanent risks hard to predict Intervention in the Middle East currently with limited direct impact LANXESS considerations: LANXESS countermeasures: ▪ Sales exposure to the conflict region: <2% ▪ Contractual price pass-through of raw material costs ▪ Currently no supply chain interruptions
Slide 10: Leading ESG rating providers continue to honor LANXESS' performance
Leading ESG rating providers continue to honor LANXESS’ performance B AA AA AA AA A B- B- BBB C 2nd highest category for 4th time Prime status since 2020; B In total, 9 times on Climate A list Top 10% in DJSI World (13th year) Convincing governance set-up rating since 2024 (among top 2%), 7th time i
Slide 11: Agenda
Agenda 1 Leveraging a strong platform for earnings recovery 2 We are taking action 3 Review Q4 2025 and outlook 4 Financial and business details Q4 2025 11
Slide 12: Targeting further €150 m structural savings by the end of 2028
Targeting further €150 m structural savings by the end of 2028 FORWARD! ✓ More to come… … implementation by: [in € m] 2026 2027 2028 ~€50 m ▪ Reduction of ~550 positions worldwide across ~€150 m Savings ~65 ~55 ~30 by the end of 2025 + Cash Outs1 ~25 ~15 ~10 all functions ▪ Fluctuation & demographic
Slide 13: Debt reduction remains priority despite persisting economic challenges
Debt reduction remains priority despite persisting economic challenges We target to restore investment grade rating until 2028 Net debt in € m ▪ Initial signs of possible recovery in the construction industry at the earliest Net debt / during the second half of the year 2,500 EBITDA pre Operational
Slide 14: Our structurally improved business platform requires less capex
Our structurally improved business platform requires less capex Capex needs have significantly been reduced since 2019 Capex cash-outs in € m 508 456 479 407 326 320 319 300-350 Growth Maintenance 2019 2020 2021 2022 2023 2024 2025 for nearer future Sustainable lower capex level, additional short- t
Slide 15: Diligently managing net working capital
Diligently managing net working capital – balancing profitability and inventory control Significant reduction of net working capital since peak in Q3 2022 in € m 30% 2,200 28% 2,000 26% 1,800 24% 1,600 1,400 22% 1,200 20% 1,000 18% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 16: Agenda
Agenda 1 Leveraging a strong platform for earnings recovery 2 We are taking action 3 Review Q4 2025 and outlook 4 Financial and business details Q4 2025 16
Slide 17: Reduced net debt despite soft earnings
Reduced net debt despite soft earnings Q4 EBITDA pre (€ m) FY EBITDA pre (€ m) Main drivers: Main drivers: 159 ▪ Pre-buying in 2024, 614 ▪ Lower volumes 102 510 lower volumes in 2025 ▪ Portfolio effect ▪ Portfolio effect ▪ Adverse FX effect Q4 2024 Q4 2025 FY 2024 FY 2025 ▪ Adverse FX effect Net fin
Slide 18: LANXESS Group: A soft Q4 as expected
LANXESS Group: A soft Q4 as expected [€ m] Q4/2024 Q4/2025 Δ FY 2024 FY 2025 Δ Prior-year base Sales 1,483 1,268 -14% 6,366 5,673 -11% EBITDA pre 159 102 -36% 614 510 -17% benefitted from Margin 10.7% 8.0% 9.6% 9.0% pre-buying Capex 146 145 -1% 320 319 0% o Slightly lower prices driven by pass-throu
Slide 19: FY 2026 segment expectations
FY 2026 segment expectations: All segments to benefit from cost savings and efficiency measures Consumer Protection Specialty Additives Advanced Intermediates Earnings slightly below 2025: Earnings slightly above 2025: Earnings slightly above 2025: ▪ Operational performance to be ▪ Construction reco
Slide 20: FY 2026 guidance: EBITDA pre expected in €450 – 550 m range
FY 2026 guidance: EBITDA pre expected in €450 – 550 m range ▪ Significant macro-economic uncertainties persist, intensified by Middle East Our view on conflict economic ▪ Positive effect from German infrastructure program on construction end industry environment expected to start earliest in H2 2026
Slide 21: Economic environment remains tough, but several points for consideration
Economic environment remains tough, but several points for consideration going forward →▪ Restructured portfolio and cost savings →▪ Government stimulus program →▪ Anti-dumping vs. Chinese competition →▪ Market and supply chain consolidation →▪ Envalior: Future monetization Several indicators show i
Slide 22: Agenda
Agenda 1 Leveraging a strong platform for earnings recovery 2 We are taking action 3 Review Q4 2025 and outlook 4 Financial and business details Q4 2025 22
Slide 23: Consumer Protection: Stable FY earnings and margins
§ Consumer Protection: Stable FY earnings and margins in a challenging environment [€ m] Q4/2024 Q4/2025 Δ FY 2024 FY 2025 Δ Sales 490 434 -11% 2,081 1,889 -9% Q4: weak end EBITDA pre 86 58 -33% 286 290 1% markets persist Margin 17.6% 13.4% 13.7% 15.4% Capex 35 42 20% 88 89 1% − Lower prices due to
Slide 24: Specialty Additives: Stable pricing in continuously weak demand environment
Specialty Additives: Stable pricing in continuously Price weak demand environment [€ m] Q4/2024 Q4/2025 Δ FY 2024 FY 2025 Δ Sales 525 478 -9% 2,209 2,056 -7% Strong burden EBITDA pre 48 46 -4% 227 201 -11% from currencies Margin 9.1% 9.6% 10.3% 9.8% Capex 56 51 -9% 119 112 -6% + Some positive pricin
Slide 25: Advanced Intermediates: Low demand, tariffs and Asian competition
Advanced Intermediates: Low demand, tariffs and Asian competition continue to burden [€ m] Q4/2024 Q4/2025 Δ FY 2024 FY 2025 Δ Sales 406 354 -13% 1,804 1,653 -8% Challenging EBITDA pre 47 18 -62% 210 128 -39% environment Margin 11.6% 5.1% 11.6% 7.7% Capex 36 40 11% 86 98 14% o Prices remain relative
Slide 26: P&L Q4: Decreased earnings due to lower utilization and absence of Urethane
P&L Q4: Decreased earnings mainly due to lower utilization and absence of Urethane Business ▪ Lower sales mainly due to lower P&L [€ m] Q4/2024 Q4/2025 yoy volumes (pre-buying in prior-year Sales 1,483 1,268 -14% Q4), FX and portfolio effect (URE) Cost of sales -1,178 -1,040 12% ▪ Lower selling expe
Slide 27: Cashflow statement reflects cash containment measures
Cashflow statement reflects cash containment measures in tough times Cash flow [€ m] Q4/2024 Q4/2025 ▪ Lower profit before tax due to decreased operating result and Profit before tax -68 -287 impairments Depreciation & amortization 146 321 ▪ At-equity result reflects mainly Result from investments a
Slide 28: Continued strong equity ratio and significant reduction of net financial debt
Continued strong equity ratio and significant reduction of net financial debt Balance sheet [€ m] 31.12.2024 31.12.2025 ▪ Decrease in total assets due to €500 m bond repayment, FX effects Total assets 9,711 7,748 and impairments Equity 4,592 3,500 ▪ Decrease in equity mainly related to FX and net in
Slide 29: Impairments of goodwill, fixed assets and deferred tax assets
Impairments of goodwill (BU F&F) and fixed assets (BU RCH) as well as deferred tax assets ▪ Total write-downs of €341 m burdening net income Included as exceptional items in other operating expenses (and thus EBIT): Impairment of fixed assets: Rhein Chemie Structural profitability shortfalls – measu
Slide 30: Q4 2025: FX- & volume-driven lower sales
Q4 2025: FX- & volume-driven lower sales Sales [€ m] Sales share [%] EBITDA pre [€ m] -14% Consumer Specialty -36% Protection Additives 159 1,483* LPT 1,268* SGO RCH LAB CP 490 CP 86 102 -11% 434 MPP F&F -33% PLA 58 SA 525 -9% SA 48 478 Advanced -4% Intermediates 46 AI 406 IPG AI 47 -13% 354 -62% 18
Slide 31: Q4 2025: Volume-driven sales decline in all regions
Q4 2025: Volume-driven sales decline in all regions Q4 2025 sales by region [%] Regional development of sales [€ m] 1,483 Asia/ Americas Pacific Operational Asia/Pacific 290 1,268 development* 19 -17% 241 -3% 35 Americas 537 -18% 440 15 -4% Germany EMEA (excl. Germany) 422 -5% -3% 400 31 EMEA (excl.
Slide 32: Exceptional items (on EBIT) increased
Exceptional items (on EBIT) increased: write-downs, adj. in production network, partially offset by URE disposal [€ m] Q4 2024 Q4 2025 FY 2024 FY 2025 Excep. thereof Excep. thereof Excep. thereof Excep. thereof D&A D&A D&A D&A Strategic realignment and restructuring -8 0 -7 3 -11 -2 -117 -76 (incl.
Slide 33: LANXESS maturity profile actively managed
LANXESS maturity profile actively managed – next bond maturity already pro-actively secured Long-term financing secured Liquidity and maturity profile as per December 2025 [€ m] ▪ Average interest rate of financial ▪ Bond Bond Bond Bond 1000 2026 2027 2028 2029 liabilities ~1.0%* €500 m €500 m €600
Slide 34: Appendix
Appendix 34
Slide 35: Housekeeping items 2026
Housekeeping items 2026 FY 2026 Outlook (in €m) Capex ~330 Operational depreciation ~340 ▪ excluding ~€130 m of intangible amortization All other segments (EBITDA pre) -140 to -150 Exceptional expenses ~40 to 60 ▪ on EBIT, based on current projects FX sensitivity ~3 ▪ EBITDA pre impact after hedging
Slide 36: FY 2025: EBITDA pre on lower level due to lower utilization
FY 2025: EBITDA pre on lower level due to lower utilization and disposal of Urethane Systems business ▪ Lower sales mainly due to lower P&L [€ m] FY 2024 FY 2025 yoy demand & utilization respectively Sales 6,366 5,673 -11% and Urethane portfolio effect Cost of sales -5,068 -4,542 10% ▪ Cost saving e
Slide 37: FY 2025: Cash discipline in muted earnings environment
FY 2025: Cash discipline in muted earnings environment ▪ Lower profit before tax due to Cash flow [€ m] FY 2024 FY 2025 decreased operating result Profit before tax -197 -471 ▪ Higher D&A due to impairments Depreciation & amortization 566 806 ▪ At-equity result reflects mainly Result from investment
Slide 38: Strategic step: Monetization of our stake in Envalior
Strategic step: Monetization of our stake in Envalior through exercising right to offer initiated Step 1: Closing in April 2023 Step 2: Exit of remaining stake at pre-defined attractive valuation LANXESS already received €1.2 bn base value of LANXESS’ Envalior stake ~€1.3 bn plus ~40% stake in JV in
Slide 39: Management is significantly invested and in the shoes of investors
Management is significantly invested and in the shoes of investors Overview of managers‘ purchases since FY 2024 reporting (March 14, 2024) Name Function Date Ø Price Total quantity Total volume Matthias Zachert CEO March 14 & 15, 2024 (two purchases) 24.36 € 16,505 shares 402,070.84 € Hubert Fink B
Slide 40: Aiming for investment grade rating
Aiming for investment grade rating Credit rating history 2020 2021 2022 2023 2024 2025 2026 Baa2/ stable Baa2/ stable Baa2/ stable Baa3/ negative Baa3/ negative Baa3/ negative Ba1/ negative August 2020 August 2021 July 2022 November 2023 November 2024 November 2025 March 2026 BBB+/ stable BBB+/ stab