Solvac S.A. — Interim / Quarterly Report 2024

Aug 2, 2024

Press Release Inside/regulated information Embargo 2 August, 2024, after 5.40 PM

Interim dividend at € 3.486 gross per share, an increase of 4.0%

1. The cash revenue1, powered by the inflow of dividends from its participations in Solvay and Syensqo, stands at € 132.1 million compared to € 132.1 million in 2023 revenue and is therefore at the same level as in 2023. The total dividend distributed by Solvay and Syensqo in 2024 is at the same level as the dividend distributed by Solvay in 2023 as the unit dividend of the two companies together, € 4.05 gross/share, is the same as the unit dividend of Solvay distributed in 2023.

	1st Half 2023	1st Half 2024
Solvay dividend per share – January (in €)	1.54	1.62
Number of Solvay shares held by Solvac (in million)	32.6	32.6
Solvay dividend received in January (in million €) (a)	50.2	52.8
Syensqo dividend per share – May (in €) (*)		1.134
Number of Syensqo shares held by Solvac (in million)		32.6
Syensqo dividend received in May (in million €) (b)		37.0
Solvay dividend per share – June (in €)	2.51	0.81
Number of Solvay shares held by Solvac (in million)	32.6	32.6
Solvay dividend received in June (in million €) (c)	81.9	26,4
Withholding tax on Syensqo dividend per share to be collected in December 2024 (in € per share)		0.486
Number of Syensqo shares held by Solvac (in million €)		32.6
Withholding tax on Syensqo dividend to be collected in December 2024 (in million €) (d)		15.8
Cash revenue (a) + (b) + (c) + (d)1 (in million €)	132.1	132.1
Administrative costs	-1.2	-1.6
Other Operational Costs	-0.4	-0.0
Cost of borrowing	-1.3	-1.8
Cash income1 2 (in million €) ,	129.2	128.7

(*) For the dividend received on May 31, 2024 (€ 1.134/share, excluding withholding tax) from the company Syensqo: the withholding tax of € 0.486/share will be collected after Solvac has held its stake for an uninterrupted period of one year, which will be the case on December 9, 2024.

Solvac's holding in Solvay is 30.81% at the end of June 2024, stable compared to December 31, 2023. Solvac's holding in Syensqo is 30.81% at the end of June 2024, stable compared to December 31, 2023.

To the extent that the statutory accounts authorize it, it is on the basis of the cash result, and after covering costs, that the Board of Directors determines the amounts proposed for distribution by Solvac.

¹ Solvac uses certain non-GAAP performance indicators that are defined here:

• Cash revenue refers to income received during the period. It is defined as the cash flow obtained by the payment of dividends received from Solvay and Syensqo
• Cash income means the cash revenue reduced by the interest charges and other income and expenses (financial/operational). It is on the basis of this indicator that the Board of Directors determines the amounts proposed for distribution by Solvac. 2

^.The net income per share and the net diluted income per share are identical. The average weighted number of shares used for the calculation per share was 21 375 033 in June 2024 and in 2023

As announced in the Press Release of March 14, 2024, Solvac will no longer publish consolidated results established on the basis of the IFRS framework. The presentation will therefore be limited to the statutory accounts of the company established according to the accounting standards applicable in Belgium.

1. The Board of Directors communicates the figures for the statutory accounts relating to Solvac SA (Belgian accounting standards) for the first half of 2024:

€ million	1st Half 2023	1st Half 2024
Financial result	80.6	77.5
Operating result	-1.2	-1.6
Non-recurrent result	-0.4	-0.0
Profit before tax	79.0	76.0
Profit after tax	79.0	76.0

Solvac recorded the balance of the ex-2023 dividend from Solvay and Syensqo in the first half of this year. This amount is lower compared to 2023 given that in 2023 the interim dividend recorded on Solvay's dividend included 40% of the dividend increase of € 0.2 gross per share. With an unchanged total dividend ex-2023 of € 4.05 gross per share, the balance recorded in 2024 therefore decreases by a total amount of € 2.6 million, which explains the drop in financial income compared to 2023. In cash, both in 2023 and 2024, a constant total dividend of € 4.05 gross per share was received by Solvac from Solvay and Syensqo.

1. In accordance with the company's dividend distribution policy, the Board of Directors has decided to set the first interim dividend at 60% of the total dividend of the previous year, i.e. € 3.486 gross per share. This amount is an increase of 4.0% compared to the first interim dividend for the 2023 financial year.

The net amount of the first interim dividend is € 2.44 per share, after deduction of the withholding tax of 30%(1). This first interim dividend will be paid on August 27, 2024. This will result in a gross distribution of € 74.5 million. Solvac shares will trade ex-dividend on Euronext Brussels from Wednesday August 14, 2024 and transactions must be notified to us by Monday August 19, 2024 at the latest. Any transaction not recorded on this date must be recovered (purchase) or returned (sale) by the financial intermediary who executed the transaction.

Solvac confirms its policy of distributing almost all of Solvay's and Syensqo's dividends after deduction of its costs and financial charges.

With regard to the timing of interim dividends, Solvac will decide, if applicable, to pay a second interim dividend equivalent to the balance, subject to approval by the Ordinary General Meeting - based on the decisions that Solvay and Syensqo will communicate in November regarding interim dividends when publishing their third quarter results. The payment will take place in 2025 after Solvac has received the interim dividends announced by Solvay and Syensqo in this respect.

^-----

⁽¹⁾ For non-resident shareholders, Belgium has concluded international tax conventions with a certain number of foreign countries which generally limit the charge for this withholding tax to 15% or even 10% (https://www.solvac be/news/dividend-communications/). The first part of Form 276 Div. AUT, duly completed, signed and endorsed by the competent tax authorities must reach Solvac no later than September 6, 2024.

1. Remarks

1. Statement from the statutory auditor

EY confirms that its audit work on the financial statements of Solvac SA, established according to the legal and regulatory framework applicable in Belgium, has been substantially completed. EY confirms that the financial information contained in this press release does not require any comment on its part and is consistent with the financial statements of Solvac SA.

The report of the statutory auditor with its conclusions is presented in appendix 1.

2. Content

This press release contains regulated information in accordance with the accounting standards in Belgium. The analysis of risk management is published in the annual report, available on the Internet (www.solvac.be). There were no changes in the identification of risks as of June 30, 2024 compared to December 31, 2023.

3. Significant transactions with related parties

Significant transactions with related parties during the financial year relate to the dividend as explained above. There are no other significant related party transactions to highlight.

4. Solvac shares

	2023	2024
Number of shares issued at the end of the period	21,375,033	21,375,033

5. Statement of the accountable persons

M. Jean-Marie Solvay, Chairman of the Board of Directors and M. Melchior de Vogüé, Chairman of the Audit Committee, confirm that to the best of their knowledge:

a) the financial statements, prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, financial situation and results of the issuer;

b) the management report contains a fair presentation of the development of the issuer's business, results and situation.

Key dates 2024 for financial communications

• August 27, 2024: Payment of the first interim dividend for financial year 2024
• December 11, 2024: Announcement related to the second interim dividend for financial year 2024

For more information, please contact:

SOLVAC S.A. Investor Relations Champs Elysées street, 43

B - 1050 Brussels Tel.: 32/2/639 66 30 Email: Investor.relations@solvac.be

Solvac is a public limited company under Belgian law founded in 1983 and listed on the Euronext Brussels stock exchange under the ISIN code BE0003545531 (SOLV). Its assets consist exclusively of a stake of more than 30% in the capital of Solvay SA and 30% in the capital of Syensqo SA. Its titles are exclusively nominative. They may be held freely by individuals or, with the approval of the Board of Directors, by legal entities or similar entities under the conditions set out in its approval policy. As of June 30, 2024, its market capitalization amounted to €2.35 billion

Dit persbericht is ook in het Nederlands beschikbaar - Ce communiqué de presse est également disponible en français

We present to you the financial statements as of June 30, 2024 (as well as the comparative figures as of June 30, 2023 and December 31, 2023) according to the framework of Belgian accounting law. There have been no changes to the valuation rules applied and as published in the accounts published on December 31, 2023.

Income Statement as of June 30, 2024.

€ Thousand	June 30, 2023	December 31, 2023	June 30, 2024
Sales and Services	2	5	2
Other Operational Products	2	5	2
Service Costs	-1 570	-4 747	-1 597
Services and Miscellaneous	-979	-2 027	-1 235
Remuneration (Payroll costs)	-202	-417	-197
Depreciation	-3	-6	-2
Provisions for Risks and Charges	0	0	0
Other Operating Expenses	-53	-105	-70
Non-recurring Operating Income and Expenses	334	-2 193	-93
Operating Profits / Losses	-1 568	-4 742	-1 595
Financial Products	82 098	135 222	79 339
Income from Fixed Financial Assets	81 880	134 727	79 270
Dividends	81 880	134 727	79 270
Income from Current Assets	218	495	68
Interests	218	495	68
Other Financial Products	0	0	0
Financial Expenses	-1 567	-3 137	-1 763
Debt Charges	-1 561	-3 132	-1 757
Other Financial Charges	-7	-5	-6
Profits before Taxes	78 962	127 343	75 980
Dues and Taxes	0	0	0
PROFIT	78 962	127 343	75 980
DISTRIBUTION		-124 189
PROFIT TO BE REPORTED		3 154
PROFIT PER SHARE (€)		5.96

Notes:

Cost of services.

The cost of services increases by 2% in 2024 compared to 2023.

Financial products

Solvac recorded the balance of the ex-2023 dividend from Solvay and Syensqo in the first half of this year. This amount is lower compared to 2023 given that in 2023 Solvay's interim dividend included 40% of the dividend increase of € 0.2 gross per share. With an unchanged total dividend of € 4.05 gross per share, the balance recorded in 2024 therefore decreases by a total amount of € 2.6 million, which explains the drop in financial income compared to 2023. In cash, both in 2023 and in 2024, a constant total dividend of € 4.05 gross per share was received by Solvac from Solvay and Syensqo.

Financial expenses

The increase in these expenses of K€ 196, i.e. from K€ 1,567 in H1 2023 to K€ 1,763 in H1 2024, is mainly due to the increase in interest rates on short-term financial debt of € 15 million (at 4.41% in 2024 compared to 2.96% in 2023 and for approximately 45 days more in 2024).

Net profit.

Net profit for the first half of 2024 decreases by € 3.0 million compared to the same period in 2023 and amounts to € 76.0 million.

Balance at June 30, 2024

€ Thousand	June 30, 2023	December 31, 2023	June 30, 2024
ASSETS
FIXED ASSETS	2 697 685	2 697 679	2 697 677
Intangible Assets	4	1	0
Internet Website	4	1	0
Tangible Assets	11	10	9,9
Other Tangible Assets	11	10	9,9
Financial Assets	2 697 667	2 697 667	2 697 667
Related Companies	2 697 667	2 697 667	2 697 667
Solvay Holdings	2 697 667	613 217	613 217
Syensqo Holdings		2 084 451	2 084 451
CURRENT ASSETS	68 403	57 270	68 415
Receivables due within one year	65	52 995	16 023
Commercial Receivables			0
Other receivables	65	52 995	168
Dividend Receivables Syensqo SA			15 854
Cash Investments	0	0	0
Available Cash	67 831	4 221	51 967
Regularisation Accounts	507	54	425
Charges to be carried forward	507	54	425
TOTAL ASSETS	2 766 085	2 754 949	2 766 092
EQUITY & LIABILITIES
EQUITY	2 532 772	2 535 925	2 535 925
Capital	192 787	192 787	192 787
Subscribed Capital	192 787	192 787	192 787
Premium	572 822	572 822	572 822
Reserves	378 689	378 689	378 689
Legal Reserve	19 279	19 279	19 279
Unavailable Reserves	359 411	359 411	359 411
Available Reserves
Profit brought forward / carried forward	1 388 474	1 391 628	1 391 628
DEBTS	154 348	219 024	154 187
Debts over one year	150 000	150 000	150 000
Credit Institutions	150 000	150 000	150 000
Debts due within one year	2 500	67 873	2 333
Financial Debts		48 600	0
Commercial Debts Tax, Salary and social Debts	285 62	1 633 15 276	254 79
Other Debts	2 153	2 364	2000
Regularisation Account	1 848	1 152	1 854
Expenses to be allocated	1 848	1 152	1 854
Profit of the period	78 965	0	75 980
Interim dividend	78 965	0	75 980
TOTAL EQUITIES AND LIABILITIES	2 766 085	2 754 949	2 766 092

Notes:

Financial assets.

This item (€ 2,698 million) represents the book value of the participations held as of June 30, 2024 in Solvay and in Syensqo following the split of Solvay which took place on December 8th, 2023. These participations are valued at historical cost.

Valorization of participation.

The stock prices of Solvay (closing price on June 28, 2024) of € 32.87/share and of Syensqo (closing price on June 28, 2024) of € 83.57/share, are both higher than the historical share prices of Solvay and Syensqo resulting from the split of Solvay.

There is therefore no indication of loss of value to note.

Receivables due within one year

Receivables due within one year (€ 16 million) as of June 30, 2024 mainly represent the withholding tax of € 0.486/share on the Syensqo dividend which will be received after uninterrupted holding of its stake for a period of one year by Solvac, which will be the case on December 9, 2024. Syensqo has agreed to pay this amount of withholding tax to Solvac no later than December 15, 2024.

Financial debt.

Debts due over one year amount to €150 million as follows:

• loan of € 50 million at a rate of 2.75% with maturity in 2025
• loan of € 50 million at a rate of 1.47% with maturity in 2027
• loan of € 50 million at a rate of 1.16% with maturity in 2029

Solvac's cash flow needs from the end of August are covered by a new credit line put in place from September 2022 until August 2025.

The net profit over 6 months (€76.0 million) appears in the half-yearly balance sheet before distribution.

Appendix 1. The Auditor's report

EY Bedrijfsrevisoren EY Réviseurs d'Entreprises Liège Office Center Rue des Guillemins 129, bte3 B - 4000 Liège

Tel: +32 (0) 4 273 76 00 ey.com

Rapport du commissaire à l'organe d'administration de Solvac SA sur l'examen limité de l'information financière intermédiaire résumée pour la période de 6 mois close le 30 juin 2024

Introduction

Nous avons effectué l'examen limité de l'état résumé de la situation financière de Solvac SA arrêté au 30 juin 2024, incluant le bilan et le compte de résultat pour la période de 6 mois close à cette date, ainsi que des notes explicatives (« l'information financière intermédiaire résumée »). L'organe d'administration de la société est responsable de l'établissement et de la présentation de cette information financière intermédiaire résumée conformément au référentiel comptable applicable en Belgique. Notre responsabilité est d'exprimer une conclusion sur cette information financière intermédiaire résumée sur la base de notre examen limité.

Etendue de l'examen limité

Nous avons effectué notre examen limité selon la norme ISRE 2410 « Examen limité d'informations financières intermédiaires effectué par l'auditeur indépendant de l'entité ». Un examen limité d'information financière intermédiaire consiste en des demandes d'informations, principalement auprès des personnes responsables des questions financières et comptables et dans la mise en œuvre de procédures analytiques et d'autres procédures d'examen limité. L'étendue d'un examen limité est considérablement plus restreinte que celle d'un audit effectué selon les normes internationales d'audit (ISA) et ne nous permet donc pas d'obtenir l'assurance que nous avons relevé tous les éléments significatifs qu'un audit aurait permis d'identifier. En conséquence, nous n'exprimons pas d'opinion d'audit.

Conclusion

Sur la base de notre examen limité, nous n'avons pas relevé de faits qui nous laissent à penser que l'information financière intermédiaire résumée ci-jointe pour la période de 6 mois close le 30 juin 2024 n'a pas été établie, dans tous ses aspects significatifs, conformément au référentiel comptable applicable en Belgique .

Diegem, le 2 août 2024

EY Réviseurs d'Entreprises SRL Commissaire représentée par

Marie-Laure Moreau* Partner *Agissant au nom d'une SRL

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