Evonik Industries : Financial Report (260508 EvonikEarningsConferenceCallQ12026)

About this update from Evonik Industries Ag

‌Evonik‌ Leading Beyond Chemistry Q1 2026 Results 1 May 8, 2026 Christian Kullmann , Chief Executive Officer Dr. Claus Rettig , Interim Chief Financial Officer ‌Board update: CEO contract extended, new CFO appointed - a strong combination of continuity and fresh perspectives CEO Christian Kullmann: Contract extended CEO since 2017 Contract extended from 2027 until 2030 Strong signal for stability and continuity in turbulent times Clear commitment to achieve strategic and financial goals latest until 2030 Picture placeholder New CFO Michael Rauch since May 1 st , 2026 Highly experienced manager across different functions, companies, industries and countries CEO and CFO roles Strong background in transformation processes Capital markets experience Picture placeholder ‌Slightly better than expected Q1 - FY guidance confirmed Q1 adj. EBITDA of €475 m slightly ahead of expectations thanks to stronger March Start into the year facing same weak demand environment as H2 2025; late March supported by volume uptick / pre-buying Strong cash generation in Q1: FCF of €183 m in-line with prior year despite notably weaker earnings Good start into the year underpinning FY guidance of ~40% cash conversion Q2 adj. EBITDA to be at least €550 m: Clear step-up compared to prior year (€509 m) and prior quarter (€475 m) Likely strongest quarter in 2026 thanks to both higher volumes and prices; support esp. from methionine FY 2026 outlook confirmed amid significant uncertainty: Adj. EBITDA between €1.7 and 2.0 bn War in Middle East results in changed earnings profile for the year: Opportunities increasing mainly in H1, risks lie in H2 ‌Table of contents‌‌ Highlights and Outlook FY 2026 Financial performance Q1 2026 ‌Q1 adj. EBITDA of €475 m slightly ahead of expectations thanks to stronger March Adj. EBITDA (in € m) Drivers of Q1 performance "around €450 m" +6% Results from optimization programs clearly visible − -410 FTE vs. year-end 2025 Start into the year facing same weak demand environment as in H2 2025 Late March supported by volume uptick; likely pre-buying after start of war in Middle East − e.g. Crosslinkers, High Performance Polymers and lubricant additives with strong volume development and strong order entries for Q2 already − Only limited pricing impact so far due to time delay of price adjustments 450 475 Q1 guidance Jan Feb Mar Q1 2026 ‌Strong cash generation in Q1:‌ FCF in-line with prior year despite notably weaker earnings − Supported by cash inflow from termination of take-or-pay contract last year, customer pre-payments and customer co-financing of investments − NWC outflow (-€100 m) similar to last year Good start into the year underpinning FY guidance of ~40% cash conversion FCF of €183 m in-line with prior year despite notably weaker earnings Free Cash Flow (in € m) Drivers of Q1 performance 195 183 133 127 21 Q1 2022 Q1 2023 Q1 2024 Q1 2025 Q1 2026 ‌Evonik relatively better positioned to navigate the current environment Middle East war-related challenges & risks Evonik positioning Exports from Asian competition to the world limited (given they only produce in "their" home region and rely on Middle East feedstock more) Global setup: ~80% of sales are produced locally Balanced product portfolio a clear benefit, esp. Advanced Technologies with upside both on prices and volumes Supply chain disruptions globally Strong local sourcing: ~80% of raw materials locally sourced Raw materials largely secured for coming months Only exception: partial Force Majeure for methionine Singapore Input costs rising significantly (raw materials, energy, freight) Ability to currently pass on higher input costs Hedging strategy limits increase in energy costs Second-order effects (esp. GDP risk) From H2 onwards: Inflation leading to volume risk Balanced product portfolio potentially mitigating this risk to a certain degree ‌Q2 adj. EBITDA to be at least €550 m - Better H1 than initially expected … … while risks lie in H2 Likely strongest quarter in 2026 thanks to both higher volumes and prices Outlook confirmed: €1.7-2.0 bn 475 "at least €550 m" (Q2 2025: €509 m) Q1 Q2E Q3E Q4E FY 2026E + Strong price momentum + Volume increases / pre-buying at least also in April ↯ Higher variable costs limiting upside ↯ Impact of raw material availability on production ↯ Planned methionine maintenance + Higher volumes / pre-buying in late March (only limited price effects) ↯ Weak start into the year ↯ Seasonal decline vs. Q1-Q3 avg. usually ~20% ↯ Possibly more pronounced this year (optimization after pre-buying) ↯ Inflation could lead to demand softening ↯ Hence, lower volumes and utilization possible ‌FY 2026 outlook confirmed: Adj. EBITDA between €1.7 and 2.0 bn Adj. EBITDA (in € bn) Expected building blocks for earnings development War in Middle East results in changed earnings profile for the year: Key opportunities - mainly in H1: − Strong price momentum − Higher volumes / pre-buying Key risks - mainly in H2: − Risk of inflation-led demand slowdown − Potential destocking At mid-point of guidance range, war-related opportunities and risks balance out "€1.7 - 2.0 bn" 1.9 2025 2026E ‌Free Cash Flow: Targeting ~40% cash conversion again Free Cash Flow (in € m) / Conversion rate 1 (in %) Expected building blocks for FCF development CCR 1 37% ~40% Similar operating result (mid-point of guidance range) as starting point Disciplined capex approach: yoy stable at ~€750 m Lower bonus payments in FY 2026 (for 2025) NWC initially expected to be flat, now a certain headwind possible mainly from cost and price inflation - but too early to predict year-end effect given potential slowdown in H2 695 2025 2026E 1. Cash Conversion Rate = FCF / adj. EBITDA ‌Table of contents‌‌ Highlights and Outlook FY 2026 Financial performance Q1 2026 475 (Q1 2025: 560) Adj. EBITDA (in € m) 3,427 (Q1 2025: 3,777) Sales (in € m) ‌Q1 2026 results overview Sales (y oy) Volume Price -2% -1% FX Other -5% -1% 224 (Q1 2025: 190) Capex 1 (in € m) 183 (Q1 2025: 195) Free Cash Flow (in € m) 0.34 (Q1 2025: 0.59) Adj. EPS (in €) 1. Cash outflows for investments -7% Strong comparables yoy, with FX headwinds and modestly lower volumes, yet stable pricing and product mix Pick-up in orders at quarter end, however no visible underlying demand improvement given weak Jan and Feb Additives (adj. EBITDA lower yoy) Additives (ex Catalysts), especially lubricant additives, continued stable performance yoy against good base Catalysts weak start into the year; with Alkoxides awaiting upswing from regulatory changes Care (adj. EBITDA lower yoy) Care Solutions still suffering from subdued demand in base ingredients, while specialities develop on track Health Care with solid demand in oral drug delivery, good pricing and enhanced plant effectiveness Q1 26 vs. Q1 25 Volume Price FX Other -3% +/-0% -6% +2% ‌Custom Solutions 17.9% 17.0% 13.5% Adj. EBITDA (in € m) / margin (in %) Sales (in € m) Additives --- Care 1,427 1,359 1,334 974 868 920 453 491 414 Q1 2025 Q4 2025 -11% Q1 2026 256 184 227 Q1 2025 Q4 2025 Q1 2026 ‌Advanced Technologies Q1 26 vs. Q1 25 Volume Price FX Other -1% -1% -6% -1% -9% Inorganics (adj. EBITDA up yoy) Silica benefits from network optimization Improved sales momentum for Silica starting in March and into April, especially specialty Silica Organics (adj. EBITDA up yoy) High Performance Polymers benefiting from optimization program and strong demand for foams Crosslinkers yoy below strong Q1 2025, improving from March onwards Animal Nutrition (adj. EBITDA down yoy) Tough comparable: last year supported by one-time effect Higher variable costs and raw material shortages in Singapore (Force Majeure) Price momentum in methionine market (from April onwards) Sales (in € m) Inorganics --- Organics --- Animal Nutrition 1,415 1,450 566 577 395 390 454 484 Q4 2025 Q1 2026 1,601 621 426 554 Adj. EBITDA (in € m) / margin (in %) Q1 2025 291 -17% 18.2% 16.6% 13.1% 186 241 Q1 2025 Q4 2025 Q1 2026 -23% 61 59 Q1 2025 Q4 2025 Q1 2026 47 Oxeno (C4): Q1 performance limited by weak demand and raw material costs rising faster than prices after start of war in the Middle East Infrastructure: high level of stability, little impact of Middle east conflict due to hedging of energy costs Thereof: Infrastructure Adj. EBITDA (in € m) ‌Infrastructure / Other -17% -48 -72 -40 Q1 2025 Q4 2025 Q1 2026 Less negative yoy, supported by strong cost discipline (mainly Evonik Tailor Made savings) Thereof: Other -46% 13 -13 7 Q1 2025 Q4 2025 Q1 2026 ‌16 ‌Additional indications for FY 2026 (all unchanged)‌ Sales between €13.5 and 14.5 bn (2025: €14.1 bn) ROCE around prior-year level (2025: 6.1%) Capex 1 ~€750 m (2025: €748 m) EUR/USD sensitivity 2 +/-1 USD cent = -/+ ~€5 m adj. EBITDA (FY basis) Adj. D&A around prior-year level (2025: €1,013 m) Adj. net financial result around prior-year level (2025: -€162 m) Adj. tax rate around long-term sustainable level of ~30% (2025: 22%) 1. Cash outflow for investment in intangible assets, pp&e | 2. Including transaction effects (after hedging) and translation effects; before secondary / market effects ‌Adjusted income statement Q1 2026 Adj. net financial result (-€46 m) €17m lower yoy; largely attributable to interest income related to a tax refund in the prior year Adj. tax rate (27%) Adj. tax rate this year in-line with full year guidance; last year exceptionally low due to one-time effects Adjustments (-€6 m) Mostly driven by restructuring measures in € m Q1 2025 Q1 2026 ∆ Sales 3,777 3,427 -9% Adj. EBITDA 560 475 -15% Depreciation & amortization -251 -240 Adj. EBIT 309 235 -24% Adj. net financial result -29 -46 D&A on intangible assets 34 32 Adj. income before income taxes 314 221 -30% Adj. income tax -36 -59 Adj. income after taxes 278 162 -42% Adj. non-controlling interests -3 -4 Adj. net income 275 158 -43% Adj. earnings per share (in €) 0.59 0.34 Adjustments -10 -6 ‌Cash flow statement Q1 2026 CF from operating activities Lower (reported) EBIT as starting point One-time effect from last year in ACA business now cash-relevant Misc. assets/ liabilities supported by customer pre-payments and co-financing Cash outflow for investment Slightly higher capex spending this year due to shift between quarters; FY guidance is stable for capex CF from financing activities €500m green bond issuance last year, net repayment of financial debt this year in € m Q1 2025 Q1 2026 Income before financial result and income taxes (EBIT) 299 229 Depreciation and amortization 240 239 ∆ Net working capital -98 -100 Change in provisions for pensions & other post-employment benefits -4 -8 Change in other provisions 37 27 Change in miscellaneous assets/liabilities -100 46 Cash inflows/outflows from income taxes -2 -23 Others 13 -3 Cash flow from operating activities 385 407 Cash outflows for investment in intangible assets, pp&e -190 -224 FCF 195 183 Cash flow from investing activities -511 -203 Cash flow from financing activities 402 -112 ‌Net financial debt development Q1 2026 3,140 20 27 19 224 407 3,311 Dec 31, 2025 CF from Cash outflows Net interest Addition/reduction in Other Mar 31, 2026 Net financial operating for investments payments leasing liabilities Net financial debt activities in intangibles debt and PP&E ‌Development of debt and leverage over time Total Leverage 1 3.0 2.3 2.4 2.5 Net financial debt (€3,140 m) Net financial debt slightly down thanks to good cash generation in Q1 Net financial debt leverage stable at 1.6x 2 Pension provisions (€1,547 m) Increased pension provisions at stable discount rate Long-dated pension obligations with ~12 years duration Solid funding ratio of ~85% Net financial debt ( in € m) 3,310 3,253 3,311 3,140 3.6 1,547 1,490 1,662 1,858 3.5 German pension discount rate (%) and Pension provisions (in € m) 4.3 4.3 Adj. EBITDA (LTM) 1,656 2,065 1,874 1,789 2023 2024 2025 Q1 2026 1. (Net financial debt - 50% hybrid bond + pension provisions) / Adj. EBITDA (LTM); 2. (Net financial debt - 50% hybrid bond) / Adj. EBITDA (LTM) ‌Segment overview by quarter Sales (in € m) Q1/25 Q2/25 Q3/25 Q4/25 FY 2025 Q1/26 Custom Solutions 1,427 1,367 1,340 1,359 5,492 1,334 Advanced Technologies 1,601 1,511 1,445 1,415 5,973 1,450 Infrastructure / Other 1 749 621 606 629 2,604 643 Evonik Group 3,777 3,499 3,391 3,403 14,069 3,427 Adj. EBITDA (in € m) Q1/25 Q2/25 Q3/25 Q4/25 FY 2025 Q1/26 Custom Solutions 256 254 215 184 909 227 Advanced Technologies 291 266 202 186 944 241 Infrastructure / Other 1 13 -11 31 -13 21 7 Evonik Group 560 509 448 357 1,874 475 1. Including Oxeno (C4 business) ‌Upcoming IR events Upcoming reporting dates & events Conferences & roadshows May 13, 2026 Roadshow London (Barclays) May 19, 2026 Chemicals Conference, London (Citi) May 20, 2026 Sustainability Forum, virtual (Oddo BHF) May 21, 2026 Sustainability Call Series, virtual (JP Morgan) May 26, 2026 European Champions Conference, Frankfurt (DB) May 27, 2026 Roadshow Copenhagen May 28, 2026 Roadshow Stockholm May 8, 2026 Q1 2026 Reporting June 3, 2026 Annual Shareholders' Meeting August 4, 2026 Q2 2026 Reporting November 3, 2026 Q3 2026 Reporting ‌Evonik Investor Relations Team Christoph Finke Senior Vice President Investor Relations +49 174 9931647 [email protected] Cédric Schupp Director Investor Relations & ESG +49 173 2552453 [email protected] Johanna Göbel Senior Manager Investor Relations +49 172 5268167 [email protected] Katharina Gayk Specialist Investor Relations +49 174 9931669 [email protected] Janine Göttel Specialist Investor Relations +49 151 53831578 [email protected] Gevitha Selvakumar Manager Investor Relations & ESG +49 174 9080817 [email protected] ‌Disclaimer In so far as forecasts or expectations are expressed in this presentation or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release. ‌26

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