Slide 1: Full-year 2024 results & Strategy update
Full-year 2024 results & Strategy update Media conference call March 6, 2025 Alexandre Blum Philippe Kehren Chief Financial Officer Chief Executive Officer
Slide 2: Delivering on our promises
2024 Delivering on our promises New purpose and culture driving employee engagement 80% engagement rate Transformation - digitalization - cost savings €110m delivered vs €80m target Energy transition projects Two more plants exited coal in 2024 Refinancing €1.5bn bond issued, oversubscribed 6 times S
Slide 3: Full year 2024 results
Full year 2024 results Solvay exceeds full-year guidance with high-quality results. € € € € 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% margins Stronger capital structure than announced at spinoff 1 to Solvay Shareholders from conti
Slide 4: We are essential chemistry making progress possible for generations
WE ARE ESSENTIAL CHEMISTRY MAKING PROGRESS POSSIBLE FOR GENERATIONS 4
Slide 5: Not commodities, not specialties… ESSENTIAL
Not commodities, not specialties… ESSENTIAL COMMODITY Six dimensions differentiate Essential Chemistry SPECIALTY CHEMICALS CHEMICALS Process focused Product Innovation Industry Product focused Standard grades Focus on process landscape Wholesale market Quality & consistency and applications Fewer pl
Slide 6: Global reach, essential to diversified end-markets
Global reach, Essential to diversified end-markets Close to our customers >80% net sales are regional Industrial applications & Chemical industry Automotive Consumer, Home & Health Care % of 2024 net sales net sales Agro, Feed & Food Resources, Environment & Energy 19% 22% 33% 26% Building & Others p
Slide 7: Our formula for success
Our formula for success to ignite the path towards our ambition Our AMBITION Solvay’s strategy to remain Essential Purpose Core value Strategic levers Key enablers A leader in “We are essential drivers Operational Operating Model Essential Chemistry chemistry, making Market Leadership excellence Peo
Slide 8: Our strategic levers
Our strategic levers to deliver on our roadmap 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 proce
Slide 9: Operational excellence: accelerate our transformation
Operational excellence : accelerate our transformation Simplification and digitalization as key enablers Operational efficiency Plant fixed costs SG&A • Transportation costs • STAR Operations Corporate functions Operational excellence Target Operating Models • Yields improvements in • energy and raw mat
Slide 10: Planet, Progress, Better Life targets
CLIMATE NATURE HEALTH SOCIAL CARE CHANGE PROTECTION & SAFETY & DIALOGUE Reduce environmental Pressures Aim for Gender Parity Carbon Neutrality in mid & senior By 2050 management 30% land dedicated to Biodiversity By 2030 Strive for -30% Scope 1+2 GHG Emissions Zero Accident By 2030 -20% Scope 3 30%
Slide 11: 2024 ESG performance
2024 ESG performance Solvay is on track to meet its targets. 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 by 2030 (except Devnya) Bi
Slide 12: Accelerating the energy transition
Did you know? Accelerating the energy transition In the past 20 years, Solvay has already Our roadmap to carbon neutrality is robust and affordable reduced its CO2 emissions by half. (at current Solvay perimeter) -⅓ implemented validated -⅓ under design Competitiveness 9 -⅓ as an imperative Addition
Slide 13: Process innovation e.Solvay
Process innovation e.Solvay - how we will revolutionize the soda ash industry New breakthrough electrochemical process powered by renewable energy Proprietary technology first patented in 2014 -50% CO2 emissions -30% limestone consumption -20% energy, salt and water consumption Pilot in Dombasle Tech
Slide 14: Production capacity
Production capacity Sustained leadership and high potential opportunities fueling top-line growth Grow with the market High potential by sustaining leadership opportunities Capacity expansion of H2O2 capacity addition in Asia to New bicarbonate Circular highly dispersible Rare earths from recycled 0
Slide 15: 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% uEBITDA Margin 23% 21% 24% 24% 23% 23% 23% 22% 1,257 1,146 1,052 1,022 961 919 876 875 uEBITDA CAPEX 273 254 295 272 285 380 450 355 2017 2018 2019 2020 2021 2022 2023 2
Slide 16: Driving sustainable growth
Driving sustainable growth Latest developments ● Achieved 100% coal phase out in Rheinberg, Germany. ● Unveiled climate and water initiatives at Paulínia, Brazil. ● Introduced biodigester to replace part of natural gas in Ciudad Juarez, Mexico. ● Signed a MoU with Hankook for circular silica, reinfo
Slide 17: 2024 EBITDA above expectations
2024 EBITDA above expectations driven by continued positive volume momentum in Q4 and the acceleration of cost savings. €110 million cost savings achieved in 2024. Q4 2024 Net sales % org. EBITDA % org. Margins % org. Global €1.1bn +0.5% €256m +2% 22.6% +0.4pp Basic Chemicals €712m +1% €209m -1% 29.
Slide 18: Capital allocation
Capital allocation Policy confirmed Priority 1 Priority 2 Priority 3 Essential CAPEX Dividends Additional value HSE and maintenance ‘Stable to increasing’ Priority: investments in growth projects Energy transition1 policy Optionality: further shareholder return €250-300 million per year €260 million
Slide 19: Outlook and expectations for the full year 2025
2025 Outlook and expectations Underlying EBITDA between €1.0 billion and €1.1 billion for the full year Free Cash Flow1 ~€300 million Capex between €300 million and €350 million 19 1 Free Cash Flow to Solvay shareholders from continuing operations
Slide 20: 2028 Targets
2028 KPI November 2023 March 2025 Targets Underlying EBITDA growth (%) Mid-Single Digit per year average = Underlying EBITDA margin (%) Mid to High 20s = Total gross savings €300 million run-rate ↑ €350 mn run-rate Cash flow generation FCF conversion exceeding mid 30s Aligned with capital allocation
Slide 21: Q&A
21 &A Q&A
Slide 22: media.relations@solvay.com
media.relations@solvay.com