Covestro AG · VIE:1COV
Covestro — FY2025 Earnings Presentation
46 slides from Covestro's earnings presentation, March 2026
Slide 1: Navigating adverse economic climate
Navigating adverse economic climate Roadshow presentation covestro.com FY 2025 │ IR Roadshow Presentation 0
Slide 2: Covestro investment highlights
Covestro investment highlights Group financials FY’25 Segment overview Background information covestro.com FY 2025 │ IR Roadshow Presentation 1
Slide 3: Covestro is diversified across geographies and end-markets
Covestro is diversified across geographies and end-markets Key performance indicators and sales split €13bn €0.7bn €-0.3bn -10pp Sales EBITDA FOCF ROCE above WACC 2025 2025 2025 2025 2025 sales Automotive & Sports / leisure, transportation cosmetics, health, APAC EMLA 18% diverse industries Other 31
Slide 4: Covestro is a global leader across its entire portfolio
Covestro is a global leader across its entire portfolio World-wide industry positions and production capacities KEY MARKETS Aliphatic Polyurethane MDI TDI Polyether polyols PC isocyanates dispersions CAPACITY SHARE IN 2023(1) Others Others Others 10% 13% 7% Others 20% 22% 61% Others 36% Others 8% 42
Slide 5: Update of our corporate strategy "Sustainable Future"
Update of our corporate strategy “Sustainable Future” Overview OPTIMIZE GROW TRANSFORM We operate competitively for our We grow our portfolio according to We become climate neutral and circular customers customer needs with our customers & work in an agile way INNOVATION DIGITAL TRANSFORMATION AND A
Slide 6: Clear priorities for short-, mid- and long-term success
Clear priorities for short-, mid- and long-term success Update of focus topics of our corporate strategy “Sustainable Future” OPTIMIZE GROW TRANSFORM SHORT-TERM MID-TERM PERMANENTLY Increase plant reliability Adjust portfolio Become climate neutral Monetize a circular portfolio for and with Improve
Slide 7: Climate neutrality with existing technologies and assets
Climate neutrality with existing technologies and assets Covestro greenhouse gas emissions UPSTREAM DOWNSTREAM Suppliers, Clients, use Transportation Transportation raw materials phase, end of life Indirect emissions Indirect emissions Indirect emissions Indirect emissions Direct emissions Indirect
Slide 8: Sustainable manufacturing and renewable energy to lead path
Sustainable manufacturing and renewable energy to lead path Climate neutrality target for GHG emissions scope 1 and 2 GHG emissions in million metric tons, scope 1 and 2 EMISSION REDUCTION MEASURES • Three main levers make a vital contribution to reduce 0.2 GHG emissions: More sustainable manufactur
Slide 9: Numerous measures effectively reduce GHG emissions
Numerous measures effectively reduce GHG emissions Climate neutrality target for GHG emissions scope 1 and 2 MORE SUSTAINABLE MANUFACTURING RENEWABLE ELECTRICITY RENEWABLE STEAM Reducing nitrous oxide EMLA(1): Renewable electricity PPA Converting steam generation with RWE for 45% of site’s power in
Slide 10: Continuously improving global renewable electricity footprint
Continuously improving global renewable electricity footprint Additional PPAs contributing to accelerated electricity transformation in 2026 RENEWABLE ELECTRCITY SUPPLY ELECTRICITY TRANSFORMATION PROGRESS GWh 80% PPAs with major players for solar and wind EMLA energy supplying: +10% 45% of Antwerp s
Slide 11: Target reduction of 10m tons GHG until 2035 and net-zero until 2050
Target reduction of 10m tons GHG until 2035 and net-zero until 2050 Climate neutrality target for GHG emissions scope 3 GHG emissions in million metric tons, scope 3 - categories 1, 3, 4, 12(1) EMISSION REDUCTION MEASURES • Four main levers make a vital contribution to reduce 3.6 scope 3 GHG emissio
Slide 12: Strategic levers supporting transformation towards climate neutrality
Strategic levers supporting transformation towards climate neutrality Target for GHG emissions scope 3 FOCUS ON SUPPLIERS ADVANCING MAKE PROJECTS FOCUS ON CUSTOMERS OTHER MEASURES Broaden engagement with Continue innovation & Identify first mover suppliers that achieve digital R&D in renewable custo
Slide 13: Re-shaping the PU value chain for soft foams into a closed loop
Re-shaping the PU value chain for soft foams into a closed loop Innovative recycling / joint solutions COVESTRO TECHNOLOGY FUTURE PU SOFT FOAM LOOP • Chemical recycling of polyurethane (PU) mattress foams, turning Conceptual illustration M cer waste into valuable resources attre End r me du ss Co •
Slide 14: Core industry outlook indicating modest growth
FY 2025 │ 13 Core industry outlook indicating modest growth Global demand development KEY CUSTOMER INDUSTRIES 2024 Y/Y(1) 2025 Y/Y(1) 2026e(2) Global GDP +2.8% +3.0% +2.8% Automotive -0.6% +3.3% +1.8% +8.1% +29.4% +16.6% EV / BEV Construction -2.4% +0.2% +2.5% Residential -5.3% -2.0% +1.8% Furniture
Slide 15: Challenging economic environment continuing
FY 2025 │ 14 Challenging economic environment continuing Full year guidance 2025 FY 2025 GUIDANCE FY 2026 HIGHLIGHTS EBITDA €740m around 2025 level(5) Mark-to-market (M2M): • Mark-to-market (M2M) EBITDA FOCF €-283m significantly improved vs 2025 level(5) FY 2026 around €0.8bn; theoretical calculatio
Slide 16: STRONG transformation in progress
STRONG transformation in progress Transformation program STRONG TARGETS FOR COST MEASURES 2024-2028E HIGHLIGHTS target delivered • STRONG was launched in June 2024 to shape target ambition 400 Mio. € Covestro for sustainable competitiveness ~275 Mio. € o Effective structures and efficient processes
Slide 17: Significant investments into growth
Significant investments into growth Group capex and D&A HISTORIC AND PROJECTION HIGHLIGHTS in € million • Growth capex of around €3.5bn from 1350 2015 to 2025 • D&A 2025 included 1087 impairment write-off of 984 €226m 910 894 ~850 • Planned investments 764 823 832 ~800 Capex = D&A 776 765 781 770 in
Slide 18: Dividend based on net income payout ratio
Dividend based on net income payout ratio Dividend development HIGHLIGHTS 55% • Net income determining factor for the 55% dividend 40% • Committed to a payout ratio of 35% to 35% 1616 55%, related to dividend over net income o Higher payout intended in years with peak earnings, while ratio towards 6
Slide 19: Ongoing shift to high-margin business
Ongoing shift to high-margin business Portfolio management DIVESTMENTS ACQUISITIONS Additive Manufacturing business Cumulated, in € million DSM Resins & Functional Materials business in € million April 2023 April 2021 ~960 Dubai system house(1) Pontacol expansion in Specialty Films July 2021 August
Slide 20: Navigating adverse economic climate
FY 2025 │ 19 Navigating adverse economic climate FY 2025 Highlights EBITDA of €740m within guidance range impacted by continuous margin pressure helped by delivering on cost savings ambitions Sales lower at €12.9bn mainly caused by lower prices and unfavorable FX Negative volume development burdened
Slide 21: Covestro investment highlights
Covestro investment highlights Group financials FY’25 Segment overview Background information covestro.com FY 2025 │ IR Roadshow Presentation 20
Slide 22: Unprecedented margin pressure weighing on EBITDA
FY 2025 │ 21 Unprecedented margin pressure weighing on EBITDA Group results – Highlights Q4 2025 SALES in € million / changes Y/Y HIGHLIGHTS Q4 2025 • Year-over-year, declining sales (-13.7%) with negative pricing (-7.8%), FX (-4.6%) and also -6.2% -0.8% 1.0% 0.9% -0.9% -8.4% -12.0% -13.7% lower vol
Slide 23: Flat volumes despite difficult economic environment
Flat volumes despite difficult economic environment FY 2025 – Regional Split Sales Volume Y/Y China €2,956m HIGHLIGHTS EMLA €5,181m • Year-on-year development by industries: Volume -5.5% ̶ Auto flat development ̶ Furniture/wood low single-digit % decline APAC GLOBAL ̶ Electro mid-single-digit % decl
Slide 24: Lower sales mainly caused by lower prices and FX
Lower sales mainly caused by lower prices and FX FY 2025 – Sales bridge in € million HIGHLIGHTS -8.7% Volume negative 14,179 12,942 • Volume decrease of 0.9% Y/Y -125 -737 -375 Pricing negative • Pricing affected sales by -5.2% • Performance Materials strongly affected (-6.7% Y/Y) whereas Solutions
Slide 25: EBITDA mainly burdened by negative pricing delta
EBITDA mainly burdened by negative pricing delta FY 2025 – EBITDA bridge in € million HIGHLIGHTS -30.9% Positive volume Pricing delta • Volume increase of 6.8% Y/Y due to 73 -419 1,071 mix effects Negative pricing delta • Strong margin decline due to unfavorable supply-demand 319 49 740 situation Ot
Slide 26: Positive volumes in APAC and NA
Positive volumes in APAC and NA Q4 2025 – Regional Split Sales Volume Y/Y China €741m HIGHLIGHTS EMLA €1,093 • Year-on-year development by industries: Volume -8.6% ̶ Auto low single-digit % increase ̶ Furniture/wood low single-digit % increase APAC GLOBAL ̶ Electro low single-digit % decline €1,072m
Slide 27: Sales mainly burdened by lower prices and FX
Sales mainly burdened by lower prices and FX Q4 2025 – Sales bridge in € million HIGHLIGHTS -13.7% Volume negative 3,377 • Volume decrease of 1.3% Y/Y -42 2,915 Pricing negative -268 • Pricing affected sales by -7.8% -152 • Performance Materials more strongly affected (-10.9% Y/Y) whereas Solutions
Slide 28: EBITDA mainly burdened by negative pricing delta
EBITDA mainly burdened by negative pricing delta Q4 2025 – EBITDA bridge in € million HIGHLIGHTS -52.4% Positive volume 36 Pricing delta • Volume increase of 18.8% Y/Y due -144 to mix effects 191 Negative pricing delta • Strong margin decline due to unfavorable supply-demand 125 22 91 situation Othe
Slide 29: Negative FOCF due to lower EBITDA
Negative FOCF due to lower EBITDA Historical FOCF development in € million HIGHLIGHTS 1,429 530 • Q4 2025 FOCF of €87m 232 138 89 • FY 2025 FOCF decline Y/Y driven by lower EBITDA -283 • Working capital to sales ratio(4) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 stable at 16.8% (FY 2024: 16.9%
Slide 30: Total net debt decrease through capital increase
Total net debt decrease through capital increase December 31, 2025 – Total net debt in € million HIGHLIGHTS 2,933 • Total net debt / EBITDA ratio(2) of 2.5x at the end of FY 2025 compared to 2.7x at the end of FY 2024 92 283 • Capital increase of €1.17bn 2,618 -25 1,880 representing 10% of registere
Slide 31: Challenging economic environment continuing
FY 2025 │ 30 Challenging economic environment continuing Full year guidance 2026 FY 2025 GUIDANCE FY 2026 HIGHLIGHTS EBITDA €740m around 2025 level(5) Mark-to-market (M2M): • Mark-to-market (M2M) EBITDA FOCF €-283m significantly improved vs 2025 level(5) FY 2026 around €0.8bn; theoretical calculatio
Slide 32: Covestro investment highlights
Covestro investment highlights Group financials FY’25 Segment overview Background information covestro.com FY 2025 │ IR Roadshow Presentation 31
Slide 33: Differentiation based on customer proximity and innovation
Differentiation based on customer proximity and innovation Solutions & Specialties PRODUCTS SUCCESS FACTORS BENEFITS FOR GROUP Differentiated polymer products • Maintain leadership in Implement a pull supply chain differentiated niche SALES 2025 (in € million) Use deep customer understanding to appl
Slide 34: Solutions & Specialties – Volume rebound at low price levels
FY 2025 │ 33 Solutions & Specialties – Volume rebound at low price levels Segment results – Highlights Q4 2025 SALES in € million / changes Y/Y HIGHLIGHTS Q4 2025 • Sales declined by 7.7% Y/Y, equally driven by -3.3% -2.0% -2.9% -1.2% -5.4% FX (-5.1%) and prices (-5.0%) while higher -6.2% -7.7% -7.7
Slide 35: Standard products with reliable supply and lowest cost
Standard products with reliable supply and lowest cost Performance Materials PRODUCTS SUCCESS FACTORS BENEFITS FOR GROUP Polyurethane and polycarbonate standard • Maintain leadership in products as well as basic chemicals Ensure high asset utilization Covestro core industries Integrated end-2-end pl
Slide 36: Performance Materials – EBITDA burdened by margin pressure
FY 2025 │ 35 Performance Materials – EBITDA burdened by margin pressure Segment results – Highlights Q4 2025 SALES in € million / changes Y/Y HIGHLIGHTS Q4 2025 • Sales declined (-19.5%) Y/Y, driven by lower 2.5% 4.1% 5.2% -5.7% -0.7% -11.8% -16.2% -19.5% prices (-10.9%), volumes (-4.6%) and FX (-4.
Slide 37: MDI market moving to balance
MDI market moving to balance Performance Materials: MDI industry demand and supply MDI DEMAND DEVELOPMENT (2020- 2030e) MDI SUPPLY DEVELOPMENT (2020 - 2030e) in kt(1) in kt(2) BASE % growth as CAGR % growth as CAGR 4% HIGH 6% HIGH BASE 2-3% 2% LOW 3% LOW ~5% ~4% 4-5% 11,040 9,020 2020 2025 2030e 202
Slide 38: TDI market moving toward balance
TDI market moving toward balance Performance Materials: TDI industry demand and supply TDI DEMAND DEVELOPMENT (2020 - 2030e) TDI SUPPLY DEVELOPMENT (2020 - 2030e) in kt(1) in kt(2) % growth as CAGR % growth as CAGR BASE BASE 1-2% 2% HIGH 3-4% 4% HIGH ~1% 1% LOW ~2% 3% LOW 3,470 2,640 2020 2025 2030e
Slide 39: Covestro investment highlights
Covestro investment highlights Group financials FY’25 Segment overview Background information covestro.com FY 2025 │ IR Roadshow Presentation 38
Slide 40: Led by a diverse, international management team
Led by a diverse, international management team Covestro senior management BOARD OF MANAGEMENT Chief Executive Chief Financial Chief Commercial Chief Technology Officer Officer Officer Officer Dr Markus Steilemann Christian Baier Monique Buch Dr Thorsten Dreier Nationality: German Nationality: Germa
Slide 41: Covestro ESG rating results and index membership
Covestro ESG rating results and index membership As of February 2026 Scoring ESG Ratings & Range 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Distinction Indices (Worst → Best) D- to A - - - - - A- A- A- C - 73 80 72 71 0 to 100 (1) AA AA AA A A A A A MSCI ESG CCC to AAA BBB BBB (2) Produc
Slide 42: Synergies in scale, process technology and chemical know-how
Synergies in scale, process technology and chemical know-how One chemical backbone across all segments INFRA- FINAL RAW MATERIALS CORE UNITS / TECHNOLOGY STRUCTURE PRODUCT Phosgene(4) Toluene DNT TDA HIGHLIGHTS Dinitrotoluene Diaminotoluene TDI • State-of-the-art asset base with leading process • Pr
Slide 43: Synergies from chemical backbone and complementary technologies
Synergies from chemical backbone and complementary technologies Solutions & Specialties backward integration and value chain INFRASTRUCTURE MAIN RAW MATERIALS COVESTRO VALUE CHAIN (simplified) Performance Materials Phosgene(2) Phosgene(2) Phosgene(2) Toluene / Benzene • Premises sTDI sMDI sPC Nitric
Slide 44: Negative net income due significantly lower EBIT
FY 2025 │ 43 Negative net income due significantly lower EBIT P&L statement FY 2025 In € million FY 2024 FY 2025 % of FY25 SALES Y/Y HIGHLIGHTS Sales 14,179 12,942 100% -8.7% Impairments • Q4 2025 impairment loss of EBITDA 1,071 740 5.7% -30.9% €208m mainly due to D&A excl. impairments -842 -861 -
Slide 45: Development of last five years
Development of last five years 1 2021 2022 2023 2024 2025 Sales (€ million) 15,903 17,903 14,377 14,179 12,942 • Volume y/y (%) +6.5 -5.0 -6.8 +7.4 -8.7 • Price y/y (%) +34.7 +10.1 -11.0 -8.0 -5.2 • FX y/y (%) -0.8 +5.9 -2.2 -0.8 -2.6 • Portfolio y/y (%) +8.1 +2.0 - - - EBITDA (€ million) 3,085 1,61
Slide 46: Disclaimer
Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development