Solvay (SOLB) Investor update summary

Strategic direction and business model

• Strategy focuses on essential chemistry, with market and cost leadership supported by sustainability.

• Five mono-technologies and a regional Latin American business serve diversified end markets; each cited end market is under 20% of sales, and over 80% of sales are regional or local.

• Leading positions in soda ash, peroxides, silica and rare earths serve markets including automotive, construction and healthcare.

• Global footprint spans North America, Latin America, Europe and Asia.

• Long-term customer partnerships draw on proprietary processes, customer intimacy, stable supply agreements and innovation programs.

Financial performance and outlook

• 2024 net sales were €4.7bn, EBITDA €1.052bn at a 22.5% margin, and free cash flow to shareholders from continuing operations €361m, with 34% conversion; CapEx was €355m.

• Q1 2025 net sales were €1.1bn, EBITDA €250m and FCF €42m; softer soda ash was offset by resilience in other businesses.

• Q2 expected to be comparable to Q1, excluding the Q1 positive one-off and higher temporary stranded costs.

• FY2025 underlying EBITDA guidance reaffirmed at €1bn–€1.1bn, with the lower half expected if market conditions and exchange rates persist; FCF guidance ~€300m and CapEx target ~€300m.

• Capital allocation prioritizes €250m–€300m annual essential CapEx, stable-to-growing dividends (€260m allocated in 2024), then selective high-return growth and potential excess-cash returns.

Sustainability and energy transition

• Carbon-neutrality target for 2050; Scope 1 and 2 emissions target is down 30% by 2030 vs 2021, with 17% achieved; 2024 reductions were maintained despite higher production in some businesses.

• Biodiversity commitment is to dedicate 30% of permeable land near sensitive areas to conservation and restoration by 2030, in partnership with IUCN.

• Energy-transition CapEx planned at €30m–€35m annually through 2030, rising to €50m per year by 2040; Rheinberg completed its coal phase-out in November 2024.

• 100% of the workforce receives a living wage, achieved one year early; gender-diversity ambition is 30% by 2030.

• e.Solvay aims to cut soda ash CO2 emissions by 50% and reduce resource consumption; the process reached technological feasibility, with work moving to its economic equation.