Slide 1: Full Year 2024 Earnings call
Philippe KEHREN CEO FULL YEAR 2024 Alexandre BLUM CFO Earnings call March 6th, 2025 1
Slide 2: Forenote
Forenote This presentation may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties relating to
Slide 3: Agenda
Agenda 01 CEO UPDATE 02 FINANCIALS 03 OUTLOOK 3
Slide 4: Reflecting back, looking forward
01 REFLECTING BACK, LOOKING FORWARD Philippe KEHREN 4
Slide 5: Safety at the heart of our operations
Safety at the heart of our operations 0.32 Dedicated Safety team 0.31 0.30 0.29 led by a Group Safety 0.27 0.27 0.27 0.27 director 0.24 Safety transformation to strengthen safety culture Engagement of all leaders and operational discipline in the 4 4 4 4 3 2 1 3 0 plants Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 S
Slide 6: Delivering on our promises
2024 Delivering on our promises 80% People engagement - new culture and purpose engagement rate €110m delivered Transformation - digitalization - cost savings vs €80m target Energy transition projects Two more plants exited coal in 2024 Developing our relationships with customers Circular Silica, e-
Slide 7: Full year 2024 results
Full year 2024 results EBITDA and cash above expectations supported by cost savings acceleration € € € € 4.7bn 1.05bn 361m 1.5bn 18% uNET SALES uEBITDA FCF 1 uNET DEBT ROCE -4% organic -8% organic 1.5x leverage 22.5% margin EBITDA, FCF and cost savings above 2024 guidance Stronger capital structure
Slide 8: We are chemistry
WE ARE CHEMISTRY Essential to our DAILY life Essential TODAY, essential TOMORROW 8
Slide 9: Our ambition: a leader in essential chemistry
Our ambition: a leader in essential chemistry OUR PURPOSE CORE VALUE STRATEGIC KEY ENABLERS DRIVERS LEVERS “We are essential Market Leadership Operational excellence Our Operating Model chemistry, making Cost Leadership Energy transition Our People & Culture progress possible Sustainability Process
Slide 10: Not commodities, not specialties… Essentials
Not commodities, not specialties… ESSENTIALS Essential can be defined through 6 dimensions COMMODITY SPECIALTY ESSENTIAL CHEMISTRY CHEMICALS CHEMICALS Process focused Product Industry Product focused Innovation Standard grades Focus on process landscape Wholesale market Fewer players Customer intimac
Slide 11: Focused portfolio of leading businesses essential to diversified end-markets
Focused portfolio of Essential to diversified leading businesses end-markets 29% Soda Ash 9% 4% Electronics 24% Building & 13% Construction Industrial Applications & Chemical Coatis 12% industry Bicarbonate 12% % of % of Resources, Net Sales Net Sales Environment 2024 & Energy 19% 14% 20% 15% Automot
Slide 12: Global reach, local-to-local in all continents
Global reach, Local-to-local in all continents NORTH LATIN EUROPE ASIA AMERICA AMERICA PACIFIC* & Middle East - Africa 19% 22% 33% 26% of net sales of net sales of net sales of net sales 7 6 19 12 production sites production sites production sites production sites *of which Mainland China: 6% of net
Slide 13: Our strategic levers
Our strategic levers Operational Accelerate the Process Production excellence energy transition innovation Capacity Grow with High potential the market opportunities Continuous Shift from New technologies Capacity expansion, Capture progress and fossil-based energy or process greenfield and/or opport
Slide 14: Operational excellence: accelerate our transformation
Operational excellence : accelerate our Transformation Standardization and digitalization as key enablers Operational efficiency Plant Fixed Costs SG&A • Yields improvements in • Predictive maintenance Corporate functions energy and raw materials • Plant organization Target Operating Models • Transpor
Slide 15: In 2024, we defined the foundations of Sustainability at Solvay
In 2024, we defined the foundations of Sustainability at Solvay “For Generations” new roadmap ➝ Solvay essential chemicals are supported by Sustainability megatrends ➝ Confirm the central role of sustainability in the strategy of Solvay after the Partial Demerger ➝ Refreshed ambition, new commitments,
Slide 16: For Generations
For Generations A sustainability roadmap with refreshed ambitions and new commitments 2021 2024 Progress Targets Scope 1 & 2 GHG emissions (Mt) 9.0 7.5 -17% -30% by 2030 ; carbon neutrality by 2050 Scope 3 GHG emissions (Mt)1 14.7 14.1 -4% -20% by 2030 Coal phase out (# of sites)2 5 3 -2 All sites b
Slide 17: Accelerating the energy transition
In the past 20 years, Solvay Accelerating the energy transition has already reduced its CO2 Our roadmap to carbon neutrality is robust and affordable emissions by half -⅓ (at current Solvay perimeter) Imple- mented validated -⅓ Competitiveness under design as an imperative 9 -⅓ 6 Additional third-pa
Slide 18: Process innovation
Process innovation e.Solvay - how we will revolutionize the soda ash industry New breakthrough electrochemical process powered by renewable energy Proprietary and patented technology -50% CO2 emissions -30% limestone consumption -20% energy, salt and water consumption Pilot in Dombasle, France Techn
Slide 19: Production capacity
Production capacity Sustained leadership and high potential opportunities fueling top-line growth GROW WITH THE MARKET HIGH POTENTIAL OPPORTUNITIES BY SUSTAINING LEADERSHIP Capacity expansion of H2O2 capacity addition in Asia to meet growing New Bicarbonate Circular highly Rare earths from 0.6Mt Sod
Slide 20: Alexandre Blum
02 Alexandre BLUM 20
Slide 21: FY Sales bridge
€4,686m in 2024 VS €4,880m in 2023 FY Sales bridge Volume increase partially offsetting negative pricing €+231m (+5%) Scope Forex conversion Volume & mix Price Volumes up for the 4th consecutive quarter mainly from Basic Chemicals -4% Lower pricing -4% from soda ash FY 2023 FY 2023 FY 2024 Sales Sal
Slide 22: FY EBITDA bridge
FY EBITDA bridge €1,052m in 2024 VS €1,246m in 2023 -8% organic growth, better than 2024 guidance MARGIN MARGIN (€1,146 million -1.0pp 23.5% 22.5% restated) Higher volumes yoy Forex Volume mainly Soda Ash, Bicarbonate, Scope conversion & mix Other Peroxides and Coatis Net Fixed pricing costs Lower N
Slide 23: Structural cost savings for FY 2024
Structural cost savings for FY 2024 € m Target - FY24 € € € € 60m + 30m + 20m = m Operational Plant efficiency Fixed Costs SG&A Delivered - FY24 Gross savings (before inflation) measured as year on year EBITDA impact 23
Slide 24: Basic Chemicals results
Basic Chemicals results Q4 2024 (€m) % YoY % YoY organic FY 2024 (€m) % YoY % YoY organic Soda Ash & Deriv. 475 -5% -1% Soda Ash & Deriv. 1,907 -9% -9% Peroxides 237 +30% +6% Peroxides 935 +26% +3% Net Sales 712 +5% +1% Net Sales 2,842 +0% -5% EBITDA 209 +3% -1% EBITDA 786 -17% -19% EBITDA Margin 29
Slide 25: Performance Chemicals results
Performance Chemicals results Q4 2024 (€m) % YoY % YoY organic FY 2024 (€m) % YoY % YoY organic Silica 131 -2% -1% Silica 543 -7% -6% Coatis 144 -1% +15% Coatis 631 -2% +4% Special Chem 144 -15% -13% Special Chem 660 -19% -5% Net Sales 419 -7% -1% Net Sales 1,834 -10% -3% EBITDA 64 +1% +6% EBITDA 32
Slide 26: Solid FCF generation of €361m in 2024
Solid FCF generation of €361m in 2024 Evidencing the resilience of Solvay in a challenging environment Resilient EBITDA Performance Capex ramp up Essential Capex and Growth projects Capex Working capital Higher provisions Provisions Financing Taxes -111 cash out & other +60 mainly environmental, res
Slide 27: Capital structure
S&P RATING: BBB- Capital structure Stable outlook Dividend well covered by FCF delivery Net debt: €1.5 Bn Employee benefits liabilities: €0.7 Bn Environmental liabilities: €0.5 Bn Separation Voluntary pension M&A costs and others Leverage ratio: 1.5x FCF Dividends contributions 2024 dividend: €2.43 I
Slide 28: Resilience through the cycles
Resilience through the cycles Margin & Cash Conversion track record over 2017-2024 Cash Conversion 70% 71% 71% 69% 70% 70% 61% 66% Proven resilient margin through crises uEBITDA Margin 23% 21% 24% 24% 23% 23% 23% 22% Flexibilization of capex to sustain 1,257 high cash conversion 1,146 1,052 1,022 96
Slide 29: Capital allocation policy confirmed
Capital allocation policy confirmed HSE and maintenance €250-300 million Essential CAPEX Energy transition 1 per year ‘Stable to increasing’ policy €260 million Dividends in 2024 Priority: investments in growth Depending on merit Additional value creation Optionality: further shareholder return and a
Slide 30: Philippe Kehren
03 Philippe KEHREN 30
Slide 31: 2025 expectations for the full year
Underlying EBITDA 2025 between €1.0 billion and €1.1 billion Free Cash Flow1 ~€300 million Expectations for the full year Capex between €300 million and €350 million 1 Free Cash Flow to Solvay shareholders from continuing operations 31
Slide 32: 2028 KPI targets
KPI November 2023 March 2025 Underlying EBITDA Mid-Single Digit 2028 growth (%) per year average = Underlying EBITDA margin (%) Mid to High 20s = Total gross savings €300 million ↑€350 million run-rate run-rate Aligned with capital FCF conversion exceeding mid 30s allocation policy ROCE (%) Increasi
Slide 33: Key takeaways
Key takeaways Clear strategy Transformation Launch of For Essential for ongoing, Generations Generations including safety sustainability roadmap 33
Slide 34: Solvay
SOLVAY
Slide 35: Appendix
APP SIN SOLVAY
Slide 36: Profitable growth drivers
Profitable growth drivers Top line and cost savings supporting EBITDA growth uEBITDA Margin 23.5% Mid to high 20s Mid-single digit uEBITDA growth TOP LINE GROWTH Supported by volume and price recovery in key markets, and by faster growth in high potential opportunities COST SAVINGS Increased by €50 m
Slide 37: Corporate segment results
Corporate segment results Normalized One-offs 0 New Solvay leaner organization ERP rollout - IT simplification -50 (EBITDA, €m) Start of (-) Dombasle TSA exit TSA exit provision & offset by new ERP (+) Discret. Spent & TSA -100 Dombasle provision -128 -58 -70/-90 -150 2023 2024 2025 est. 2026 est. 20
Slide 38: Visit solvay.com
Visit solvay.com Contact media relations Contact investor relations 38