Lanxess Ag · XETR:LXS
Lanxess — Lanxess Ag Ord — Q2 2025 Earnings Presentation
32 slides from Lanxess's earnings presentation, Aug 14, 2025
Slide 1: LANXESS – Q2 2025 results
LANXESS – Q2 2025 results Focused navigation through challenging terrain 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 Review Q2 2025 and outlook 2 Financial and business details Q2 2025 3 Appendix 3
Slide 4: EBITDA pre in line with expectations; ongoing focus on net debt reduction & cash generation
EBITDA pre in line with expectations; ongoing focus on net debt reduction & cash generation EBITDA pre (€ m) Working capital (€ m) 181 150 - 17% 1,500 1,383 - €117 m Lower volumes and Q2 2024 Q2 2025 Urethane portfolio Q1 2025 Q2 2025 Mainly driven by lower main burden receivables Q2 Free Cash Flow
Slide 5: Actively taking measures to counteract demand weakness
Actively taking measures to counteract demand weakness Uerdingen: Germany ▪ Closing of Hexane oxidation plant in BU AII (end of Q2 ‘25) Permanent optimization of ▪ Optimized CO2-footprint; plant is highly energy-intensive production network ongoing Leverkusen: ▪ Improving production efficiencies in
Slide 6: FY '25 segment guidance: Ongoing geopolitical tensions & market uncertainties expected to weigh on earnings
FY ‘25 segment guidance: Ongoing geopolitical tensions & market uncertainties expected to weigh on earnings Consumer Protection Specialty Additives Advanced Intermediates EBITDA pre slightly above prior-year EBITDA pre on comparable level yoy EBITDA pre moderately lower yoy ▪ Moderate growth in cons
Slide 7: FY 2025 guidance update
FY 2025 guidance update: EBITDA pre between €520 - 580 m ▪ Macroeconomic uncertainties have increased due to ongoing tariff discussions triggering widespread demand Our view on weakness economic ▪ Positive effect from German government stimulus environment program expected to start in 2026 ▪ Excess
Slide 8: Ready to benefit from demand pick-up
Ready to benefit from demand pick-up Utilization still on historically low levels, … … however, we laid the groundwork We are ready to and actively unleash value Utilization ~80%* ~65-70% managed current challenges ▪ Portfolio optimization EBITDA pre Weakening in € m ~800-900 demand, high ▪ Improved
Slide 9: Agenda
Agenda 1 Review Q2 2025 and outlook 2 Financial and business details Q2 2025 3 Appendix 9
Slide 10: LANXESS Group: Challenging market environment burdens Q2; EBITDA pre in H1 on prior-year level
LANXESS Group: Challenging market environment burdens Q2; EBITDA pre in H1 on prior-year level [€ m] Q2/2024 Q2/2025 Δ H1 2024 H1 2025 Δ Lower volumes and Sales 1,678 1,466 -13% 3,285 3,067 -7% EBITDA pre 181 150 -17% 282 283 0% portfolio effect Margin 10.8% 10.2% 8.6% 9.2% weigh on earnings Capex 6
Slide 11: Consumer Protection: EBITDA increase due to improved product mix and one-time effect
§ Consumer Protection: EBITDA increase due to improved product mix and one-time effect [€ m] Q2/2024 Q2/2025 Δ H1 2024 H1 2025 Δ Improved cost Sales 561 489 -13% 1,070 1,002 -6% base; lower EBITDA pre 80 87 9% 129 160 24% volumes especially Margin 14.3% 17.8% 12.1% 16.0% in agro Capex 17 17 0% 29 27
Slide 12: Specialty Additives: Cautious buying behavior
Specialty Additives: Cautious buying behavior Price [€ m] Q2/2024 Q2/2025 Δ H1 2024 H1 2025 Δ Ongoing weak Sales 568 528 -7% 1,134 1,073 -5% EBITDA pre 70 58 -17% 118 110 -7% construction Margin 12.3% 11.0% 10.4% 10.3% markets burden Capex 24 27 13% 38 40 5% o Stable prices overall Sales vs. prior y
Slide 13: Advanced Intermediates: Challenging environment with broadly weak demand
Advanced Intermediates: Challenging environment with broadly weak demand [€ m] Q2/2024 Q2/2025 Δ H1 2024 H1 2025 Δ Overall increasing Sales 478 446 -7% 943 922 -2% competition from EBITDA pre 58 44 -24% 95 84 -12% Asia burdens Margin 12.1% 9.9% 10.1% 9.1% additionally Capex 18 20 11% 29 38 31% − Low
Slide 14: P&L Q2: Decreased earnings due to lower volumes in challenging environment and Urethane portfolio effect
P&L Q2: Decreased earnings due to lower volumes in challenging environment and Urethane portfolio effect P&L [€ m] Q2/2024 Q2/2025 yoy ▪ Lower sales mainly due to lower Sales 1,678 (100%) 1,466 (100%) -13% volumes and portfolio impact from Cost of sales -1,314 (-78%) -1,139 (-78%) 13% Urethane Syste
Slide 15: Positive free cash flow in a continued difficult environment with ongoing disciplined CAPEX
Positive free cash flow in a continued difficult environment with ongoing disciplined CAPEX Cash flow [€ m] Q2/2024 Q2/2025 ▪ Lower profit before tax due to Profit before tax -12 -55 decreased operating result Depreciation & amortization 141 217 ▪ Gains from disposal of assets reflect sale of Busine
Slide 16: 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 30.06.2025 ▪ Decrease in total assets due to €500 m bond repayment and Total assets 9,711 8,427 adverse FX effect Equity 4,592 3,996 ▪ Decrease in equity mainly FX related Equity ratio 47% 47
Slide 17: Q2 2025: Input costs- & demand-driven lower sales; stronger EBITDA pre in Consumer Protection
Q2 2025: Input costs- & demand-driven lower sales; stronger EBITDA pre in Consumer Protection Sales [€ m] Sales share [%] EBITDA pre [€ m] -13% Consumer Specialty -17% Protection Additives 181 1,678* LPT 150 1,466* SGO RCH LAB CP 561 CP 80 -13% +9% 489 87 MPP F&F PLA SA 568 -7% 528 SA 70 -17% Advanc
Slide 18: Q2 2025: Volume-driven sales decline in all regions
Q2 2025: Volume-driven sales decline in all regions Q2 2025 sales by region [%] Regional development of sales [€ m] 1,678 Operational Asia/ development* Americas Asia/Pacific 1,466 Pacific 318 -18% 18 261 -7% 35 Americas 591 -14% 509 -3% 16 Germany EMEA (excl. Germany) 512 -11% -9% 454 31 EMEA (excl
Slide 19: Exceptional items in Q2 consist of efficiency measures and Urethane divestment gain
Exceptional items in Q2 consist of efficiency measures and Urethane divestment gain Gain from Urethane divestment turns EBITDA exceptionals positive [in € m] 81 on EBITDA on EBIT 5 Exceptional 76 M&A: income Mainly Urethane divestment 38 Exceptional -48 -86 Restructuring D&A: expenses Mainly D&A for
Slide 20: Exceptional items (on EBIT) increased driven by adj. in production network, partially offset by URE disposal
Exceptional items (on EBIT) increased driven by adj. in production network, partially offset by URE disposal [€ m] Q2 2024 Q2 2025 H1 2024 H1 2025 Excep. thereof Excep. thereof Excep. thereof Excep. thereof D&A D&A D&A D&A Strategic realignment and restructuring 0 -1 -107 -81 -5 -1 -108 -81 (incl. F
Slide 21: EBITDA pre development for H2 2025 impacted by external market dynamics
EBITDA pre development for H2 2025 impacted by external market dynamics [in € m] 614 580 Chlorine shortage 520 impact included (~€10 m) 283 2024 Absence of Overall weak 2025 H1 25 H2 25e EBITDA pre Urethane demand EBITDA pre EBITDA pre EBITDA pre contribution guided Weak market dynamics are likely t
Slide 22: Significant reduction in gross debt due to repayment of bond in May 2025
Significant reduction in gross debt due to repayment of bond in May 2025 Long-term financing secured Liquidity and maturity profile as per June 2025 [€ m] ▪ Average interest rate of financial ▪Bond Bond Bond Bond 1000 2026 2027 2028 2029 liabilities ~1.0%* €500 m €500 m €600 m €600 m 1.00% 0.00% 1.7
Slide 23: Agenda
Agenda 1 Review Q2 2025 and outlook 2 Financial and business details Q2 2025 3 Appendix 23
Slide 24: Housekeeping items 2025
Housekeeping items 2025 FY 2025 Outlook (in € m) Capex ~330 ▪ excluding ~€150 m of intangible amortization Operational depreciation ~370 All other segments (EBITDA pre) -150 to -160 Exceptional expenses ~100 ▪ on EBIT FX sensitivity ~3 ▪ EBITDA pre impact after hedging per cent change of EUR/USD 202
Slide 25: H1 2025: EBITDA pre on prior-year level despite disposal of Urethane Systems business in Q2
H1 2025: EBITDA pre on prior-year level despite disposal of Urethane Systems business in Q2 P&L [€ m] H1 2024 H1 2025 yoy ▪ Lower sales mainly due to lower Sales 3,285 (100%) 3,067 (100%) -7% prices based on the pass-through Cost of sales -2,641 (-80%) -2,418 (-79%) 8% of lower raw material prices a
Slide 26: H1 2025: Operating cash flow compares with high previous year
H1 2025: Operating cash flow compares with high previous year Cash flow [€ m] H1 2024 H1 2025 ▪ Slightly improved profit before tax Profit before tax -131 -116 as Envalior contribution and loan valuation contribute Depreciation & amortization 281 352 ▪ Higher D&A due to higher Result from investment
Slide 27: Substantial leverage improvement already realized
Substantial leverage improvement already realized Threshold of 2.5x leverage targeted [in €m] Proceeds from URE divestiture 3,814 4.9x Potential future Net financial monetization of debt/ EBITDA pre 4.1x Envalior stake 3.9x 2,498 3.4x 2,381 Investment 2,069 grade threshold 2.5x <2x FY 2022 FY 2023 F
Slide 28: H1 2025: Results on prior-year level, due to positive development in Consumer Protection
H1 2025: Results on prior-year level, due to positive development in Consumer Protection Sales [€ m] Sales share [%] EBITDA pre [€ m] -7% 0% Consumer Specialty Protection Additives 3,285* 283 3,067* LPT 282 SGO RCH LAB CP 1,070 -6% CP 1,002 129 +24% 160 MPP F&F PLA SA 1,134 -5% 1,073 118 -7% Advance
Slide 29: H1 2025: Sales decline in all regions, regional sales split relatively unchanged
H1 2025: Sales decline in all regions, regional sales split relatively unchanged H1 2025 sales by region [%] Regional development of sales [€ m] Operational Asia/ 3,285 Asia/Pacific 3,067 development* Americas Pacific 607 -9% 552 18 -4% 35 Americas 1,123 -5% 1,064 -1% 17 Germany EMEA (excl. Germany)
Slide 30: Contact details Investor Relations
Contact details Investor Relations Ulrike Rockel Visit the IR website Head of Treasury & Investor Relations Tel.: +49 221 8885 5458 Mob.: +49 175 30 50458 E-Mail: ulrike.rockel@lanxess.com André Simon Thomas Kaiser Jens Ussler Catharina Kaiser Head of Investor Relations Institutional Investors / Ana
Slide 31: Abbreviations
Abbreviations § Consumer Protection Specialty Additives MPP Material Protection Products PLA Polymer Additives F&F Flavors & Fragrances LAB Lubricant Additives Business SGO Saltigo RCH Rhein Chemie LPT Liquid Purification Technologies Advanced Intermediates AII Advanced Industrial Intermediates IPG
Slide 32: Upcoming events 2025 - Proactive capital market communication
Upcoming events 2025 - Proactive capital market communication Aug Sep Nov 14 Q2 2025 Reporting 03 Commerzbank & ODDO BHF 06 Q3 2025 Reporting Corporate Conference Frankfurt 03 UBS Global Materials Conference NY 04 Jefferies Industrials Conference NY 10 Berenberg Food Ingredients & Chemicals Conferen