Solstice Advanced Materials Inc. · NASDAQ:SOLS

Solstice Advanced Materials — Investor Day (October 2025)

71 slides from Solstice Advanced Materials's investor day presentation, Oct 8, 2025

  1. Slide 1: 2025 Investor Day

    2025 Investor Day October 8, 2025

  2. Slide 2: Agenda

    Agenda Introduction 1:30PM Overview of Solstice 1:40PM Business Segment Overviews 2:10PM Break 2:45PM Panel Discussion: Business Synergies & Growth Strategy 3:00PM Financial Summary 3:40PM Q&A 4:00PM Closing Remarks 4:30PM 2

  3. Slide 3: Today’s Presenters

    Today’s Presenters David Sewell Tina Pierce Mike Leithead President & Chief Executive Officer Chief Financial Officer Vice President Investor Relations Jeff Dormo Simon Mawson Wylie Clark Senior Vice President Senior Vice President Chief Development Officer Refrigerants & Applied Solutions Electroni

  4. Slide 4: Forward-Looking Statements & Other Disclaimers

    Forward-Looking Statements & Other Disclaimers The information in this presentation has been prepared in connection with the previously announced plan by Honeywell International Inc. (“HON” or “Honeywell”) to spin off its Advanced Materials business (the “Company”, "Solstice Advanced Materials Inc.“

  5. Slide 5: Overview

    Overview David Sewell President & Chief Executive Officer

  6. Slide 6: Solstice | A Differentiated Advanced Materials Company

    Solstice | A Differentiated Advanced Materials Company Clear right-to-win built on a rich 130+ year history of solving complex customer challenges Underpinned by strong secular trends in cooling, advanced computing, safety, nuclear, and healthcare A refined operating model and independent strategy t

  7. Slide 7: Solstice at a Glance

    Solstice at a Glance Business Segments Net Sales by Geography4 Net Sales by End Market Key Metrics (2024 Net Sales) (2024) (2024) (2024) Refrigerants & Other Life Science Defense & Medical 4% Applied Solutions International HVAC/R $3.8 billion 3,900+ 8% 16% 18% 72% Semiconductors 10% 3 Net Sales Emp

  8. Slide 8: Strong Foundation Built on a Rich Legacy

    Strong Foundation Built on a Rich Legacy 2021 2022 Futraheat partnership AstraZeneca on Solstice® zd (R- partnership on 1233zd) heat pump next-gen respiratory inhalers 2019 1940 1949 Aclar® Accel 1979 RAS segment Genetron® CFCs, launched Roots of Hydranal predecessor NACC HCFCs, HFCs technology 2000

  9. Slide 9: Strong Financial Performance

    Strong Financial Performance Net Sales1 Net Sales CAGR Adj. EBITDA Margin1,2 Return on Invested ($ in billions) (2017-2024) (2024) Capital (2024) 4.4% CAGR 26.4% 4.4% 21.5% $3.8 $3.8 $3.6 $3.6 17.8% 3.9% $3.1 $2.8 $2.8 $2.8 $2.7 8.4% 6 2017 2018 2019 2020 2021 2022 2023 2024 LTM June 30, 1 Peer 4 Pe

  10. Slide 10: Business Profile

    Business Profile Product Mix1 End-Market Mix1 Geographical Mix1,2 Customer Concentration1,3 Electronic Defense Materials Life Science & 4% Other Top 10 10% Medical HVAC/R Research & 16% 16% 8% 18% Performance Refrigerants Semiconductors Chemicals 34% 10% 13% Safety & Defense Automotive U.S. Industri

  11. Slide 11: Customer & Manufacturing Footprint

    Customer & Manufacturing Footprint 1 120 ~90% ~90% Countries & Territories with Sales US Sales U.S. Sales Manufactured Manufactured inin U.S. US 24 ~60% 2 Manufacturing Sites Sales ~60% Manufactured in Same Region Sales Manufactured in Same Region 96% Manufacturing Average Customer HQ ~66% Satisfact

  12. Slide 12: Leadership Team

    Leadership Team David Sewell Tina Pierce Jeff Dormo Simon Mawson Wylie Clark President & Chief Executive Officer Chief Financial Officer Senior Vice President Senior Vice President Chief Development Officer Refrigerants & Applied Solutions Electronic & Specialty Materials • <1 Year with Honeywell •

  13. Slide 13: Unleashing Growth & Value Creation

    Unleashing Growth & Value Creation Serve attractive end markets with strong secular trends Grow industry leadership positions Enable independent strategy with a refined operating model $ Allocate capital with clear priorities and discipline Drive value creation with a differentiated growth strategy

  14. Slide 14: Serving Attractive End Markets with Strong Secular Trends

    Serving Attractive End Markets with Strong Secular Trends Growth of Advanced Environmental & Improving Health Personal Safety & Computing Energy Evolution Outcomes Defense • Denser, higher power chips • Regulatory and policy goals • Next-gen medical • Protective equipment require new materials and r

  15. Slide 15: 12% CAGR 9% CAGR >GDP

    12% CAGR 9% CAGR Advanced node (<7nm) HFO demand in 1 2 demand North America (2025-2030) (2025-2030) >GDP 3X Expected demand for Expected growth in global 3 4 LGWP healthcare aerosols nuclear capacity by 2050 15 1 Source: SEMI World Fab Forecast. 2 Source: S&P Global Commodity Insights. 3 GDP growth

  16. Slide 16: Growing Industry Leadership Positions

    Growing Industry Leadership Positions Net Sales Growth & Resilient Margins New Product Related Sales3 (%) (2024) 4.4% 26.4% Net Sales CAGR 1 Adj. Standalone EBITDA (2017-2024) Margin (estimate)2 New NPI (2024) 12% Capture Organic Secular Growth Drive Commercial Excellence Expand into Grow & Other Ad

  17. Slide 17: R&D & Innovation Footprint

    R&D & Innovation Footprint 1 R&D Spend Allocation2 (%) (2024) 5,700+ 300+ 4 IP Protection Research & 12% Patents issued and R&D Technologists Development pending3 & Engineers 3 Centers New NPI Discovery 42% 22% Core NPI 24% New NPI Focus Areas • Next-gen refrigerant molecules • Next-gen electronic m

  18. Slide 18: Enabling an Independent Strategy to Unleash Growth Potential

    Enabling an Independent Strategy to Unleash Growth Potential Refined operating model enables an independent strategy to unleash the full growth potential of Solstice Innovation & Commercial Capital Deployment & Supply Chain & Manufacturing Commercialization Excellence & Growth Optimization Logistics

  19. Slide 19: Allocating Capital with Discipline & Clear Priorities

    Allocating Capital with Discipline & Clear Priorities 01 02 03 04 Invest in High- Maintain Strong Accelerate Return Excess Return Organic Balance Sheet & Growth through Capital to Growth Projects Liquidity Position Selective M&A Shareholders Maintain financial flexibility and strong cash flow genera

  20. Slide 20: Recent Growth Investments

    Recent Growth Investments Executing a staged capital Increasing production capacity to enable the Solstice® yf deployment to scale 1234yf stationary 454B transition and support global (LGWP refrigerant) production capacity (2024) automotive needs High Purity Increasing production capacity and $40 mi

  21. Slide 21: Solstice | An Attractive Investment Proposition

    Solstice | An Attractive Investment Proposition Attractive End Markets Underpinned by strong and resilient secular growth trends Industry Leadership Built on solving complex customer challenges through differentiated technology platforms Operational Excellence Driven by disciplined use of a refined

  22. Slide 22: Refrigerants & Applied Solutions

    Refrigerants & Applied Solutions Jeff Dormo Senior Vice President

  23. Slide 23: Overview of Refrigerants & Applied Solutions

    Overview of Refrigerants & Applied Solutions 1 Financials Net Sales by Business Net Sales by Geography (2024) (2024) (2024) $2.7 billion Healthcare Packaging Other Net Sales International Alternative Energy 9% 14% Services 3.5% 16% Net Sales Growth 48% 23% $1.1 billion 63% Adj. EBITDA 27% Europe, Bu

  24. Slide 24: Refrigerants

    Refrigerants Attractive End Markets Leading Technology Platforms Hydrofluoroolefins (HFOs): Solstice® yf, zd, ze $1.3 billion • Solstice® • Solstice® HFO Blends Net Sales • Hydrofluorocarbons (HFCs): Genetron® (2024) Stationary Data Automotive HVAC/R Centers HVAC/R High-Value Applications Data cente

  25. Slide 25: Regulatory Transition to LGWP Refrigerants

    Regulatory Transition to LGWP Refrigerants HFC Regulatory Phasedown (% of Baseline) 100% Regulations in the U.S. and 80% 80% Europe are driving a 70% transition from HFCs to LGWP 60% 60% 55% 50% HFOs 40% 34% Solstice is already benefiting 30% from this transition in 23% 20% 15% automotive refrigeran

  26. Slide 26: LGWP Refrigerants Poised for Further Growth

    LGWP Refrigerants Poised for Further Growth 1 Stationary Refrigerants HFO Growth to Offset HFC Decline Portfolio Mix HFO vs. HFC Demand in Europe Going forward, Solstice is (Volume) well-positioned to benefit from its leadership positions in LGWP refrigerants, particularly in: <40% 55% >60% • Statio

  27. Slide 27: Building Solutions & Intermediates

    Building Solutions & Intermediates Attractive End Markets Leading Technology Platforms $738 million • Solstice Liquid Blowing Agent and Gas Blowing Agent Net Sales • Solstice PF Cleaning Solvents and (2024) Solstice® PF-C Flushing Agents High-performance Consumer & Insulation Industrial Aerosols • S

  28. Slide 28: Healthcare Packaging

    Healthcare Packaging Attractive End Markets Leading Technology Platforms $235 million Solstice® • Medical-grade next-generation propellant Net Sales Aclar® • Aclar® and Aclar® Accel high- (2024) barrier packaging materials Medical Pharmaceutical High-Value Applications Strong & Resilient Secular Tre

  29. Slide 29: Customer Case Study | LGWP Inhaler Solution

    Customer Case Study | LGWP Inhaler Solution AstraZeneca’s portfolio of medicines delivered by pMDIs will transition to Solstice’s medical- grade next-generation propellant Solstice developed the LGWP inhaler solution in collaboration with AstraZeneca The solution will reduce greenhouse gas emissions

  30. Slide 30: Spotlight on Growth Investment | Medical Propellant

    Spotlight on Growth Investment | Medical Propellant $33 million in Capex with Compelling ROI Baton Rouge investment to build cGMP 1234ze(E) large-scale manufacturing to commercialize Solstice’s medical-grade next-generation propellant • Facility to produce near-zero global warming potential medical

  31. Slide 31: Alternative Energy Services

    Alternative Energy Services AES Overview ConverDyn Ownership Structure $446 million • AES represents Domestic Solstice’s localization efforts 100% equity energy and heightened ownership in the Metropolis Works uranium security requirements in nuclear power generation Net Sales hexafluoride (UF6) con

  32. Slide 32: Overview of the Nuclear Fuel Cycle & Industry Landscape

    Overview of the Nuclear Fuel Cycle & Industry Landscape Nuclear Fuel Cycle Recent Developments ConverDyn provides nuclear power plants and utilities with U3O8 and UF6 conversion services produced by Solstice’s Metropolis Works UF6 conversion facility $10 trillion The Audacious Reboot of America’s Po

  33. Slide 33: Electronic & Specialty Materials

    Electronic & Specialty Materials Simon Mawson Senior Vice President

  34. Slide 34: Overview of Electronic & Specialty Materials

    Overview of Electronic & Specialty Materials 1 Financials Net Sales by Business Net Sales by Geography (2024) (2024) (2024) $1.0 billion Other Research & International Net Sales Electronic Performance Chemicals Materials 21% 2.8% Net Sales Growth 36% 46% 54% $201 million 25% Adj. EBITDA Europe, 18%

  35. Slide 35: Electronic Materials

    Electronic Materials Attractive End Markets Leading Technology Platforms Sputtering targets $381 million • • Electronic polymers Net Sales • High-purity etchants and wash solvents (2024) • Heat spreaders and thermal interface materials Semiconductors Data Centers High-Value Applications Strong & Res

  36. Slide 36: Spotlight on the Electronic Materials Value Chain

    Spotlight on the Electronic Materials Value Chain Chip Manufacturing Chip Packaging and Assembly Current ESM Offerings Cleaning Doping Anti-reflective coatings, Gap Heat sink Fillers TIM 2 Wafer Blank Heat spreader Wafer Etching Process Patterning Cycle TIM 1 Finished Wafer Single Chip Si Die Etchan

  37. Slide 37: Strong End Market Demand for Electronic Materials

    Strong End Market Demand for Electronic Materials Wave of AI U.S. New Robust Demand Investment Reshoring Applications Outlook $630+ billion in U.S. U.S. investment and AI race accelerating Demand for advanced semiconductor supply industrial policy supporting demand as new nodes (<7nm) set to grow ch

  38. Slide 38: Customer Case Study | Sputtering Targets

    Customer Case Study | Sputtering Targets Solstice is working with a leading semiconductor foundry company to develop next-generation sputtering targets for leading edge nodes, investigating new metals to enhance the power and performance of future technology nodes Solstice is engaged with semiconduc

  39. Slide 39: Spotlight on Growth Investment | Semiconductors

    Spotlight on Growth Investment | Semiconductors $200 million in Capex with Compelling IRR Spokane investment to enhance site capacity with increased automation • New production lines to meet increased demand • Increased automation to drive greater efficiency, reduce risks of unplanned downtime, and

  40. Slide 40: Safety & Defense Solutions

    Safety & Defense Solutions Attractive End Markets Leading Technology Platforms $186 million • Spectra Shield® ballistic materials, primarily sold through Spectra® fiber brand Net Sales (2024) Defense Medical High-Value Applications Personal protective gear Strong & Resilient Secular Trends Vehicular

  41. Slide 41: Customer Case Studies | Spectra®

    Customer Case Studies | Spectra® Foreign Military & Law Enforcement Programs Safariland, a leading U.S. law enforcement armor Over the past 2 years, Spectra material has been manufacturer, has been Spectra’s strategic used as a key component in >100 military and partner for over 20 years law enforce

  42. Slide 42: Research & Performance Chemicals

    Research & Performance Chemicals Pictures to be finalized Attractive End Markets Leading Technology Platforms Hydranal reagents $482 million • • High-purity solvents through the Fluka, Net Sales Burdick & Jackson, Biosyn and Chromasolv brands (2024) • Fluorine-based salts, inorganic salts and Chemic

  43. Slide 43: Business Synergies & Growth Strategy

    Business Synergies & Growth Strategy

  44. Slide 44: Serving Attractive End Markets with Strong Secular Trends

    Serving Attractive End Markets with Strong Secular Trends Growth of Advanced Environmental & Improving Health Personal Safety & Computing Energy Evolution Outcomes Defense • Denser, higher power chips • Regulatory and policy goals • Next-gen medical • Protective equipment require new materials and r

  45. Slide 45: Spotlight on Business Synergies | Thermal Management

    Spotlight on Business Synergies | Thermal Management Growing Industry Perspective Leadership ▪ Increasing Thermal Design Power …and in the Data Center Positions driving demand for higher performing thermal management solutions Discovery program to ▪ Transition from air to liquid to improve develop p

  46. Slide 46: Spotlight on Growth Strategy

    Spotlight on Growth Strategy Net Sales Growth & Resilient Margins Capture Organic & Adjacent Market Opportunities • Targeted growth in margin accretive areas • Value-added product portfolio expansion • Focus on attractive end markets with strong secular trends Drive Invest in Customer-Proximate Manu

  47. Slide 47: Enabling an Independent Strategy to Unleash Growth Potential

    Enabling an Independent Strategy to Unleash Growth Potential Refined operating model enables an independent strategy to unleash the full growth potential of Solstice Innovation & Commercial Capital Deployment & Supply Chain & Manufacturing Commercialization Excellence & Growth Optimization Logistics

  48. Slide 48: Financial Summary

    Financial Summary Tina Pierce Chief Financial Officer

  49. Slide 49: Compelling Financial Profile

    Compelling Financial Profile Resilient Best-in-Class Strong Strong Compelling Sales Margin Balance Cash Return Growth Profile Sheet Conversion Profile 4.4% 26.4% 1.5x 70.3% 21.5% 1 3 Net Sales CAGR Adj. Standalone Net Leverage Cash Conversion 2,4 Return on Invested 2 (2017-2024) EBITDA Margin (June

  50. Slide 50: Resilient Sales Growth

    Resilient Sales Growth Net Sales1 Net Sales by Net Sales CAGR (2017-2024) ($ in billions) Segment ~90% 4.4% CAGR ESM U.S. Sales 28% 4.4% Manufactured in U.S. $3.8 $3.8 $3.6 $3.6 2024 ~60% RAS 72% 3.9% Sales $3.1 Manufactured in Net Sales by Same Region $2.8 $2.8 $2.8 Geography1 $2.7 Other 16% ~65% o

  51. Slide 51: Strong Adj. EBITDA Performance

    Strong Adj. EBITDA Performance 1 3 Adj. Standalone EBITDA & Adj. Standalone EBITDA Margins Segment Adj. EBITDA & Adj. EBITDA Margins Adj. Standalone EBITDA Margins1 ($ in millions and as a % of Net Sales) (2024) ($ in millions and as a % of Net Sales) >10 yrs RAS ESM Average 26% 27% Customer Tenure

  52. Slide 52: Near-Term Transition; Long-Term Margin Expansion Opportunity

    Near-Term Transition; Long-Term Margin Expansion Opportunity Long-Term Margin Near-Term Transition Expansion Opportunity Standalone costs, including 12-month Standalone costs optimization; transition services agreement (TSAs) TSAs roll off Opportunistic Alternative Energy Services Operating model ex

  53. Slide 53: Strong Balance Sheet

    Strong Balance Sheet $1 billion $1.5 billion 1.5X Term Loan B 1 (SOFR + 175 bps) (estimate) Cash Distribution Net Leverage Ratio2,3 $1 billion 5.625% Senior Notes due 2033 BB+ BB+ Ba1 $450 million 1 Fitch S&P Moody’s $1 billion Cash4 on the Balance Sheet Revolving Credit Facility Strong liquidity po

  54. Slide 54: Clear Capital Expenditures Roadmap Supporting Growth

    Clear Capital Expenditures Roadmap Supporting Growth Capital Expenditures ($ in millions and as a % of Net Sales) 7.1% 8.2% 7.9% ~10% $365-$415 Mid Single Digit % of $299 $296 Net Sales $254 2022 2023 2024 2025E Medium-Term Maintenance Growth, Productivity, & Other Total Higher near-term capital int

  55. Slide 55: Cash Conversion Reflects Growth Investment Profile

    Cash Conversion Reflects Growth Investment Profile Cash Conversion1,2,3 ($ in millions) Mid Single Capex (% of Net Sales) 7.9% 8.1% ~10% Digits Cash Conversion 70.3% 70.1% ~60% >70% $699 $712 $560 (Midpoint) $390 Capex (Midpoint) $296 $303 Adj. Standalone EBITDA (estimate) - Capex 2024 LTM 2025E Med

  56. Slide 56: Allocating Capital with Discipline & Clear Priorities

    Allocating Capital with Discipline & Clear Priorities 01 02 03 04 Invest in High- Maintain Strong Accelerate Return Excess Return Organic Balance Sheet & Growth through Capital to Growth Projects Liquidity Position Selective M&A Shareholders Manufacturing Regular dividends Conservative leverage Focu

  57. Slide 57: Financial Guidance

    Financial Guidance 1 Medium-Term 2024 2025E Financial Framework Net Sales Low to Mid Single Digit % ($ in millions) $3,770 $3,750 - $3,850 Organic Net Sales CAGR Adj. Mid Single Digit % Standalone Adj. Standalone EBITDA CAGR 2 3 EBITDA Margin 26.4% ~25% (estimate)1 >70% (%) Cash Conversion1,4 Capex

  58. Slide 58: Compelling Financial Profile

    Compelling Financial Profile Resilient Best-in-Class Strong Strong Compelling Sales Margin Balance Cash Return Growth Profile Sheet Conversion Profile 4.4% 26.4% 1.5x 70.3% 21.5% 1 3 Net Sales CAGR Adj. Standalone Net Leverage Cash Conversion 2,4 Return on Invested 2 (2017-2024) EBITDA Margin (June

  59. Slide 59: Q&A

    Q&A

  60. Slide 60: A Differentiated Advanced Materials Company

    | A Differentiated Advanced Materials Company Clear right-to-win built on a rich 130+ year history of solving complex customer challenges Underpinned by strong secular trends in cooling, advanced computing, safety, nuclear, and healthcare A refined operating model and independent strategy to unleash

  61. Slide 61: © Solstice

    © Solstice

  62. Slide 62: Appendix

    Appendix

  63. Slide 63: Strong 1H 2025 Financial Performance

    Strong 1H 2025 Financial Performance Net Sales1,2 ($ in millions) $1,950 $2 $1,930 27.6% Adj. Standalone EBITDA $16 3 (estimate) Margin ($108) $70 1H 2024 AES Volume Pricing FX / Mix / Other 1H 2025 2 120 bps Transactions Adj. Standalone EBITDA (estimate)1,2,3 Adj. Standalone EBITDA 3 ($ in millions

  64. Slide 64: Adjusted EBITDA Reconciliation | Standalone Costs

    Adjusted EBITDA Reconciliation | Standalone Costs Adj. EBITDA & Adj. EBITDA Margins ($ in millions) (2024) Standalone costs expected to 29.1% 26.4% gradually decrease and stabilize $1,098 (Standalone costs largely G&A with minimal ($44) impact from COGS and sales & marketing) ($59) $995 Adjusted Rec

  65. Slide 65: Deep Dive into Raw Materials Basket

    Deep Dive into Raw Materials Basket Key Materials Rest of the (% of Total Supplier Spend) Materials Diversified supply base with no one material >20% of supplier spend Specialty Metals Olefins Global supply network provides insulation from macroeconomic Packaging ~$1 billion headwinds Total Supplier

  66. Slide 66: Historical Financials

    Historical Financials ($ in millions) 2022A 2023A 2024A H1 2024A H1 2025A RAS Net Sales $2,378 $2,629 $2,721 $1,445 $1,392 %YoY Growth 21.4% 10.5% 3.5% (3.7)% ESM Net Sales $1,209 $1,020 $1,049 $505 $538 %YoY Growth 10.4% (15.7)% 2.8% 6.5% Total Net Sales $3,587 $3,649 $3,770 $1,950 $1,930 %YoY Grow

  67. Slide 67: Non-GAAP Financial Measures

    Non-GAAP Financial Measures The following information provides definitions and historical reconciliations of certain non-GAAP financial measures presented in this presentation to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in acco

  68. Slide 68: Reconciliation of Adjusted EBITDA

    Reconciliation of Adjusted EBITDA Historical Adjusted EBITDA* Adjusted Standalone EBITDA (estimate)* ($ in millions) 2022A 2023A 2024A LTM 6/30/25 1H 2024 1H 2025 ($ in millions) 2024A LTM 6/30/25 1H 2024 1H 2025 Total Net Sales $3,587 $3,649 $3,770 $3,750 $1,950 $1,930 Adjusted EBITDA* $1,098 $1,10

  69. Slide 69: Reconciliation of Adjusted Standalone EBITDA (estimate) – Capex and Calculation of Cash Conversion

    Reconciliation of Adjusted Standalone EBITDA (estimate) – Capex and Calculation of Cash Conversion ($ in millions) 2024A LTM 6/30/2025 Adjusted EBITDA (non-GAAP) $1,098 $1,108 Transaction Accounting Adjustments1 (44) (50) Autonomous Entity Adjustments2 (59) (44) Adjusted Standalone EBITDA (estimate)

  70. Slide 70: Reconciliation of Debt and Leverage Ratios

    Reconciliation of Debt and Leverage Ratios Expected from ($ in millions) transaction Debt Term Loan B due 2032 $ 1,000 Other Unsecured Debt due 2033 1,000 Total Debt $ 2,000 Less: Cash and Cash Equivalents (450) Net Debt (non-GAAP) $ 1,550 LTM 6/30/25 Adjusted Standalone EBITDA (estimate) (non-GAAP)

  71. Slide 71: Reconciliation of Return on Invested Capital

    Reconciliation of Return on Invested Capital ($ in millions) NOPAT1 for the year ended December 31, 2024 Net Income (GAAP) $ 605 Income tax expense 192 Depreciation 175 Amortization 42 Other expense 34 Stock compensation expense 17 Interest and other financial charges 13 Other non-recurring items 10

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