Financial Report First quarter 2025

www.solvay.com May 8, 2025 | First quarter 2025 financial report 1

Index

Index 2
Forenote 2
Underlying business review 3
2025 Outlook 4
Financial performance 4
Supplementary information 9
Condensed consolidated interim financial statements 14
Events after the reporting period17
Declaration by responsible persons17
Glossary18

Forenote

Solvay presents its accounts together with alternative performance indicators ("underlying"), to provide a more consistent and comparable indication of the Group's underlying financial performance and financial position, as well as cash flows. These indicators provide a balanced view of the Group's operations, and are considered useful to investors, analysts and credit rating agencies as these measures provide relevant information on the Group's past or future performance, financial position, or cash flows. Generally, these indicators are used in the sector it operates in and therefore serve as a useful aid for investors to compare the Group's performance with its peers. The underlying performance indicators adjust IFRS figures for some elements that would distort the analysis of the Group's underlying performance (defined in the glossary under "Adjustments"). The comments on the results made on pages 3 to 8 are on an underlying basis, unless otherwise stated.

Underlying business review Highlights

Underlying net sales in Q1 2025 of €1,122 million were down -5.8% organically compared to Q1 2024. Uncertainties on the macro-environment led customers to be more cautious in the second part of the quarter, creating some softness in Soda Ash, particularly in March. Most of the other businesses showed resilient performance.
Underlying EBITDA in Q1 2025 decreased year-on-year to €250 million (-5.7% organically) compared to Q1 2024, with 22.3% underlying EBITDA margin. It was supported by a one-off gain of c. €10 million on the favorable outcome of a patent dispute in Performance Chemicals.
Structural cost savings initiatives delivered €27 million in Q1 2025, bringing the cumulative savings to €137 million since the start of 2024.
Underlying net profit from continuing operations was €102 million in Q1 2025 vs. €119 million in Q1 2024.
Free Cash Flow1 amounted to €42 million in Q1 2025, in line with normal seasonality, including Capex of €-70 million.
Underlying Net Debt at €1.7 billion, implying a leverage ratio of 1.7x.
2025 outlook confirmed: underlying EBITDA currently expected to reach the lower half of the guidance range; free cash flow1 guidance of €300 million confirmed

Underlying (in € million)	2025	2024	% yoy	% organic
Net sales	1,122	1,201	-6.6%	-5.8%
EBITDA	250	265	-5.9%	-5.7%
EBITDA margin	22.3%	22.1%	+0.2pp	-
FCF 1	42	126	n.m.	-
ROCE	17.2%	19.8%	-2.7pp	-

Philippe Kehren, Solvay CEO

"The current macro-environment is uncertain and filled with challenges that were not foreseen at the start of the year. However, our resilient global and local to local business model will allow us to navigate these challenges.

Our focus in the short-term is clear: accelerating the transformation of the company and disciplined spending to optimize cash generation. And I am pleased to see the ongoing progress in these areas, driven by our teams worldwide.

I have every confidence in the ability of the Solvay team to succeed in the current environment and continue to deliver for all our stakeholders."

¹ Free Cash Flow (FCF) here is the free cash to Solvay shareholders from continuing operations.

2025 Outlook

The current demand environment is uncertain but the essential nature of its businesses makes Solvay resilient. The company expects the second quarter underlying net sales to be sequentially stable compared to Q1 2025, while underlying EBITDA would be sequentially down as Q1 included a one-off gain of c. €10 million and as Q2 will start to see an increase of the temporary stranded costs from the exit of the Transition Service Agreement with Syensqo.

Solvay confirms the 2025 guidance as follows:

Underlying EBITDA: €1.0 billion to €1.1 billion; Solvay currently expects to reach the lower half of the range (should current market conditions and currency exchange rates continue to prevail)
Cost savings: €200 million by the end of 2025
Free cash flow to Solvay shareholders from continuing operations: around €300 million in 2025, of which the majority will be delivered in the second half of the year due to normal seasonality
Capex: around €300 million, down from "between €300 million to €350 million"

Solvay is exposed to different currencies. We estimate that the average annual currency translation impact on underlying EBITDA is €15 million per 5 USD cents movement and €5 million per 25 BRL cents movement.

Financial performance

In 2024, Solvay applied a change in Alternative Performance Metric (APM) in relation with its equity accounted investment in Peroxidos do Brasil.

Solvay applied that change in the Consolidated Income Statement in Q1 2024, and beyond the Consolidated Income Statement since Q2 2024. In the following tables, all Q1 2024 APM have been restated accordingly. For instance, this represents €4 million of FCF, and €1 million of Capex difference compared to the figures published on May 7, 2024.

Key figures

Underlying key figures
(in € million)	Q1 2025	Q1 2024	% yoy
Net sales	1,122	1,201	-6.6%
EBITDA	250	265	-5.9%
EBITDA margin	22.3%	22.1%	+0.2pp
EBIT	172	184	-6.7%
Net financial charges	-30	-31	+3.3%
Income tax expenses	-39	-33	-18.2%
Tax rate	28.1%	22.1%	+6.0pp
Profit from continuing operations	102	119	-14.5%
Profit / (loss) from discontinued operations	-1	1	n.m.
(Profit) / loss attributable to non-controlling interests	-2	-3	-19.0%
Profit / (loss) attributable to Solvay shareholders	99	117	-15.9%
Basic earnings per share (in €)	0.94	1.12	-15.4%
of which from continuing operations	0.96	1.11	-13.9%
Capex in continuing operations	70	61	+16.2%
FCF to Solvay shareholders from continuing operations	42	126	-66.5%
Net financial debt	1,725	1,544	+11.7%
Underlying leverage ratio	1.7	1.5	+13.4%
ROCE (continuing operations)	17.2%	19.8%	-2.7pp

Group performance

Net sales

Underlying net sales of €1,122 million for the first quarter of 2025 were lower by -6.6% versus the first quarter of 2024 (-5.8% organically) primarily due to lower volumes (-6.3%), while prices were up slightly (+0.6%), mainly in Performance Chemicals.

Underlying EBITDA

Underlying EBITDA of €250 million in Q1 2025 was down -5.9% (-5.7% organically). Volumes (-5.7%) and Net pricing (- 4.3%) were lower, mainly due to soda ash softness while Performance Chemicals had a more resilient performance. Fixed costs were stable in the first quarter, with savings offsetting inflation. Overall, the EBITDA margin was 22.3%, +0.2pp year on year.

Free cash flow

Free cash flow to shareholders from continuing operations was in line with normal seasonality at €42 million in Q1 2025 with Capex at €-70 million and €-46 million of Working Capital. Cash outflows from Provisions reached €-60 million as expected, including €-21 million relating to pension and environmental liabilities, restructuring, Dombasle Energy (€-6 million), and the settlement of certain litigations.

Underlying net debt

Underlying net financial debt was €1.7 billion at the end of Q1 2025, increasing by €0.2 billion compared to the end of 2024, mainly from the interim dividend payments (€101 million) and leases related to the launch of the biomass boilers in Rheinberg (€105 million), partly offset by the positive free cash flow of €42 million. The underlying leverage ratio was 1.7x at the end of Q1 2025.

Provisions

Provisions amounted to €1.5 billion at the end of Q1 2025, decreasing by €-42 million, and included €673 million of employee benefits (primarily pensions) and €507 million of environmental provisions.

Performance by segment

Net sales bridge Q1

(in € million)	Q1 2024	Scope & APM *	Forex conversion	Volume & mix	Price	Q1 2025
Solvay	1,201	3	-14	-75	7	1,122
Basic Chemicals	715	6	2	-36	-14	672
Performance Chemicals	484	-	-15	-39	21	450
Corporate	3	-3	-	-	-	-

Basic Chemicals

Basic Chemicals sales in Q1 2025 were down -6.0% (-7.0% organically) compared to Q1 2024, with a positive impact from conversion, scope and change in APM (+1.0%), but lower volumes (-5.0%) and prices (-2.0%), mainly due to soda ash.

Soda Ash & Derivatives sales for the quarter were lower by -11.0% (-11.4% organically) compared to a high base in Q1 2024. Soda ash volumes and prices were lower in Q1 2025. Demand in Europe and in the US remained low, and the seaborne market was softer sequentially, especially in South East Asia. Bicarbonate demand continues to be strong, fueled by global megatrends.

Peroxides sales for the quarter increased by +5.1% compared to Q1 2024 (+2.6% organically). Volumes were up year on year while pricing slightly decreased compared to Q1 2024 (stable sequentially).

The segment EBITDA was down -19.7% (-20.0% organically) in Q1 2025 following lower volumes and Net pricing, and slightly higher fixed costs. The EBITDA margin reached 24.1%, -4.1pp lower versus Q1 2024.

Performance Chemicals

Performance Chemicals sales in Q1 2025 were down -7.0% (-3.9% organically) compared to Q1 2024, with negative scope and conversion impact (-3.2%), and lower volumes (-8.1%) while prices increased (+4.3%).

Silica sales for the quarter were rather flat by -0.8% (-0.4% organically) with a slight volume decrease in the tire market mostly compensated by pricing.

Coatis sales for the quarter were lower by -11.2% due to the changes in BRL/EUR exchange rate, but only down -0.4% organically, with strong phenol demand offsetting softer performance in solvents.

Special Chem sales for the quarter were lower by -8.4% (-9.4% organically) compared to Q1 2024. Volumes were lower in autocatalysis (but improved sequentially), partly offset by higher demand in electronics.

The segment EBITDA for the quarter was up +17.9% (+20.0% organically), thanks to positive Net pricing, slightly increased volumes, and to the one-off gain of c. €10 million on the favorable outcome of a patent dispute, recorded in fixed costs in Special Chem. The EBITDA margin increased year on year to 21.0% by +4.4pp.

Corporate

For Q1 2025, EBITDA was €-6 million, €+10 million compared to 2024 (€+10 million organically). The improvement mainly reflects the non-repeat of the Q1 2024 accrual of €-10.5 million for the Dombasle energy transition project. The negative impact of inflation was fully offset by the structural savings of the quarter.

Key figures by segments

Segment review	Underlying
(in € million)	Q1 2025	Q1 2024	% yoy	% organic
Net sales	1,122	1,201	-6.6%	-5.8%
Basic Chemicals	672	715	-6.0%	-7.0%
Soda Ash & Derivatives	438	493	-11.0%	-11.4%
Peroxides	233	222	+5.1%	+2.6%
Performance Chemicals	450	484	-7.0%	-3.9%
Silica	144	145	-0.8%	-0.4%
Coatis	138	155	-11.2%	-0.4%
Special Chem	168	183	-8.4%	-9.4%
Corporate	-	3	N/A	-99.8%
EBITDA	250	265	-5.9%	-5.7%
Basic Chemicals	162	202	-19.7%	-20.0%
Performance Chemicals	94	80	+17.9%	+20.0%
Corporate	-6	-16	+59.9%	n.m
EBITDA margin	22.3%	22.1%	+0.2pp
Basic Chemicals	24.1%	28.2%	-4.1pp
Performance Chemicals	21.0%	16.5%	+4.4pp

Key IFRS figures

Q1 key figures		IFRS			Underlying
(in € million)	Q1 2025	Q1 2024	% yoy	Q1 2025	Q1 2024	% yoy
Net sales	1,085	1,166	-6.9%	1,122	1,201	-6.6%
EBITDA	228	246	-7.6%	250	265	-5.9%
EBITDA margin				22.3%	22.1%	+0.2pp
EBIT	148	159	-7.1%	172	184	-6.7%
Net financial charges	-33	-24	-40.1%	-30	-31	+3.3%
Income tax expenses	-32	-26	-19.9%	-39	-33	-18.2%
Tax rate				28.1%	22.1%	+6.0pp
Profit from continuing operations	83	109	-23.8%	102	119	-14.5%
Profit / (loss) from discontinued operations	-	-	n.m.	-1	1	n.m.
(Profit) / loss attributable to non-controlling interests	-2	-3	-19.3%	-2	-3	-19.0%
Profit / (loss) attributable to Solvay shareholders	81	107	-23.9%	99	117	-15.9%
Basic earnings per share (in €)	0.78	1.02	-23.5%	0.94	1.12	-15.4%
of which from continuing operations	0.78	1.02	-23.5%	0.96	1.11	-13.9%
Capex in continuing operations				70	61	+14.8%
FCF to Solvay shareholders from continuing operations				42	126	-66.5%
Net financial debt				1,725	1,544	+11.7%
Underlying leverage ratio				1.7	1.5	+13.4%
ROCE (continuing operations)				17.2%	19.8%	-2.7pp

Supplementary information

Reconciliation of alternative performance metrics

Solvay measures its financial performance using alternative performance metrics, which are presented below. Solvay believes that these measurements are useful for analyzing and explaining changes and trends in its historical results of operations, as they allow performance to be comparable on a consistent basis. Definitions of the different metrics presented here are included in the glossary at the end of this financial report.

Underlying tax rate		Underlying
(in € million)		Q1 2025	Q1 2024
Profit / (loss) for the period before taxes	a	141	153
Earnings from associates & joint ventures	b	2	3
Income taxes	c	-39	-33
Underlying tax rate	e = -c/(a-b)	28.1%	22.1%

Free cash flow (FCF)
(in € million)		Q1 2025	Q1 2024
Cash flow from operating activities	a	116	141
of which voluntary pension contributions	b	-	-
of which cash flow related to internal portfolio management and excluded from Free Cash Flow	c	-8	-55
Cash flow from investing activities	d	-51	-40
of which capital expenditures required for the Partial Demerger and excluded from Free Cash Flow	e	-	-2
Acquisition (-) of investments - Other	f	-	-8
Loans to associates and non-consolidated companies	g	-1	1
Sale (+) of subsidiaries and investments	h	-1	11
Payment of lease liabilities	i	-16	-16
FCF	j = a-b-c+d-e-f-g-h+i	59	139
FCF from Peroxidos do Brasil	k	-13	2
Net interests received/(paid) from continuing operations	l	-5	-15
Net interests received/(paid) from Peroxidos do Brasil	m	1	1
FCF to Solvay shareholders from continuing operations	n = j+k+l+m	42	126

Net working capital		2025	2024
(in € million)		March 31	December 31
Inventories	a	641	623
Trade receivables	b	811	826
Other current receivables	c	395	396
Trade payables	d	-783	-810
Other current liabilities	e	-472	-458
Net working capital (IFRS)	f = a+b+c+d+e	592	577
Net working capital (Peroxidos do Brasil)	g	23	24
Underlying net working capital	h=f+g	616	601
Quarterly total sales	i	1,279	1,291
Annualized quarterly total sales	j = 4*i	5,118	5,163
Underlying net working capital / annualized quarterly total sales	k = h / j	12.0%	11.6%

Capital expenditure (capex)
(in € million)		Q1 2025	Q1 2024
Acquisition (-) of tangible assets	a	-49	-43
of which capital expenditures required for the Partial Demerger and excluded from Free Cash Flow		-	-
Acquisition (-) of intangible assets	b	-3	-2
of which capital expenditures required for the Partial Demerger and excluded from Free Cash Flow		-	2
Payment of lease liabilities	c	-16	-16
Capex	d=a+b+c	-68	-59
Capex in discontinued operations	e	-	-
Capex in continuing operations	f=d-e	-68	-59
Capex from Peroxidos do Brasil	g	-2	-2
Underlying Capex in continuing operations	h=f+g	-70	-61
Basic Chemicals		-47	-41
Performance Chemicals		-17	-15
Corporate		-7	-5
Underlying EBITDA	i	250	265
Underlying cash conversion (continuing operations)	j = (h+i)/i	71.8%	77.2%

Net financial debt		2025	2024
(in € million)		March 31	December 31
Non-current financial debt	a	-2,093	-1,983
Current financial debt	b	-127	-155
IFRS gross debt	c = a+b	-2,220	-2,138
Underlying gross debt	d = c+h	-2,191	-2,099
Other financial instruments (current + non-current)	e	16	16
Cash & cash equivalents	f	451	539
Total cash and cash equivalents	g = e+f	466	555
IFRS net debt	i = c+g	-1,753	-1,583
Net debt of Peroxidos do Brasil	h	28	39
Underlying net debt	j = i+h	-1,725	-1,544
Underlying EBITDA (LTM)	k	1,036	1,052
Underlying leverage ratio	l = -j/k	1.7	1.5

ROCE		Q1 2025	Q1 2024
(in € million)		As calcu lated	As calcu lated
EBIT (LTM)	a	719	826
Accounting impact from EUAs and amortization & depreciation of purchase price allocation (PPA) from acquisitions	b	-3	-7
Numerator	c = a+b	716	819
WC industrial	d	706	653
WC Other	e	-114	-151
Property, plant and equipment	f	2,180	2,161
Intangible assets	g	214	207
Right-of-use assets	h	297	273
Investments in associates & joint ventures	i	78	191
Other investments	j	30	32
Goodwill	k	782	769
Denominator	l = d+e+f+g+h+i+j+k	4,174	4,135
ROCE	m = c/l	17.2%	19.8%

Reconciliation of underlying income statement indicators

Q1 consolidated income statement	Q1 2025		Q1 2024
		Adjust			Adjust
(in € million)	IFRS	ments	Under-lying	IFRS	ments	Under-lying
Sales	1,243	36	1,279	1,298	36	1,334
of which revenues from non-core activities	158	-	158	132	-	132
of which net sales	1,085	36	1,122	1,166	36	1,201
Cost of goods sold	-991	-22	-1,013	-1,007	-27	-1,034
Gross margin	252	14	266	290	9	300
Commercial costs	-24	-1	-25	-22	-1	-23
Administrative costs	-81	-	-81	-80	-	-80
Research & development costs	4	-	4	-8	-	-8
Other operating gains & losses	-4	11	6	-11	4	-7
Earnings from associates & joint ventures	10	-8	2	13	-11	3
Result from portfolio management & major restructuring	-6	6	-	-15	15	-
Result from legacy remediation & major litigations	-2	2	-	-8	8	-
EBIT	148	24	172	159	25	184
of which EBITDA	228	22	250	246	19	265
of which Depreciation, amortization & impairments	-80	2	-78	-87	6	-81
Net cost of borrowings	-16	-4	-20	-14	-6	-20
Coupons on perpetual hybrid bonds	-	-	-	-	-	-
Cost of discounting provisions	-11	-	-11	-3	-9	-12
Result from equity instruments measured at fair value	-6	6	-	-7	7	-
Profit / (loss) for the period before taxes	115	26	141	136	17	153
Income taxes	-32	-8	-39	-26	-7	-33
Profit / (loss) for the period from continuing operations	83	19	102	109	10	119
Profit / (loss) for the period from discontinued operations	-	-1	-1	-	1	1
Profit / (loss) for the period	83	18	101	109	11	120
attributable to Solvay share	81	17	99	107	11	117
attributable to non-controlling interests	2	-	2	3	-	3
Basic earnings per share (in €)	0.78	0.17	0.94	1.02	0.10	1.12
of which from continuing operations	0.78	0.18	0.96	1.02	0.09	1.11
of which from discontinued operations	-	-0.01	-0.01	-	0.01	0.01
Diluted earnings per share (in €)	0.77	0.16	0.93	1.01	0.10	1.10
of which from continuing operations	0.77	0.18	0.95	1.01	0.09	1.10
of which from discontinued operations	-	-0.01	-0.01	-	0.01	0.01

Sales and Cost of goods sold (gross margin) on an IFRS basis were €252 million, versus €266 million on an underlying basis to adjust for the change from equity accounting to proportional consolidation under the modified APM for Peroxidos do Brasil.

EBITDA on an IFRS basis totaled €228 million, versus €250 million on an underlying basis. The difference of €22 million is mainly explained by the following adjustments to IFRS results, which are made to improve the comparability of underlying results:

€4 million to adjust for the "Result from portfolio management and major restructuring" (excluding depreciation, amortization and impairment elements), mainly including several restructuring initiatives.
€2 million to adjust for the "Result from legacy remediation and major litigations", mainly due to legacy environmental provisions.
€11 million to adjust for the change from equity accounting to proportional consolidation under the modified APM for Peroxidos do Brasil.

EBIT on an IFRS basis totaled €148 million, versus €172 million on an underlying basis. The difference of €24 million is explained by the above-mentioned €22 million adjustments at the EBITDA level and €2 million of "Depreciation, amortization & impairments". The latter consist of €2 million to adjust for the impact of impairment of other nonperforming assets in "Results from portfolio management and major restructuring".

Net financial charges on an IFRS basis were €-33 million versus €-30 million on an underlying basis. The €+3 million adjustment made to IFRS net financial charges mainly consists of:

€-5 million related to the reevaluation of Long-term incentive liabilities due to the Syensqo shares.
€+6 million related to the re-measurement of the Syensqo shares at fair value.

Income taxes on an IFRS basis were €-32 million, versus €-39 million on an underlying basis. The €-8 million adjustment mainly relates to the adjustments of the earnings before taxes described above and valuation allowances on deferred tax assets related to prior periods.

Profit / (loss) attributable to Solvay shareholders was €83 million on an IFRS basis and €102 million on an underlying basis. The delta of €18 million reflects the above-mentioned adjustments to EBIT, net financial charges, and income taxes.

Main events in Q1 2025

Litigations

In 2016, Solvay initiated several infringement proceedings against a competitor regarding one of its patents for automotive catalyst materials. In late February 2025, the court awarded Solvay €10.3 million in damages and €1.3 million in additional procedural interest for the first case. The court decision became final at the end of March and the indemnity was received by Solvay on March 31, 2025, and the corresponding impact was recorded in Q1 2025 financial statements.

Condensed consolidated interim financial statements

Consolidated income statement	IFRS
(in € million)	Q1 2025	Q1 2024
Sales	1,243	1,298
of which revenues from non-core activities	158	132
of which net sales	1,085	1,166
Cost of goods sold	-991	-1,007
Gross margin	252	290
Commercial costs	-24	-22
Administrative costs	-81	-80
Research & development costs	4	-8
Other operating gains & losses	-4	-11
Earnings from associates & joint ventures	10	13
Result from portfolio management & major restructuring	-6	-15
Result from legacy remediation & major litigations	-2	-8
EBIT	148	159
Cost of borrowings	-24	-27
Interest on loans & short term deposits	3	4
Other gains & losses on net indebtedness	5	10
Cost of discounting provisions	-11	-3
Result from equity instruments measured at fair value	-6	-7
Profit / (loss) for the period before taxes	115	136
Income taxes	-32	-26
Profit / (loss) for the period from continuing operations	83	109
attributable to Solvay share	81	107
attributable to non-controlling interests	2	3
Profit / (loss) for the period from discontinued operations	-	-
Profit / (loss) for the period	83	109
attributable to Solvay share	81	107
attributable to non-controlling interests	2	3
Weighted average of number of outstanding shares, basic	104,483,648	105,111,693
Weighted average of number of outstanding shares, diluted	105,606,167	106,196,992
Basic earnings per share (in €)	0.78	1.02
of which from continuing operations	0.78	1.02
of which from discontinued operations	-	-
Diluted earnings per share (in €)	0.77	1.01
of which from continuing operations	0.77	1.01
of which from discontinued operations	-	-

Consolidated statement of cash flows		IFRS
(in € million)	Q1 2025	Q1 2024
Profit / (loss) for the period	83	109
Adjustments to profit / (loss) for the period	132	148
Depreciation, amortization & impairments	80	87
Earnings from associates & joint ventures	-10	-13
Additions and reversal of employee benefits and other provisions	-	33
Other non-operating and non-cash items	-4	-8
Net financial charges	34	23
Income tax expenses	32	26
Changes in working capital	-34	-48
Payments related to employee benefits and use of provisions	-53	-59
Dividends received from associates & joint ventures	5	5
Income taxes paid (excluding income taxes paid on sale of investments)	-17	-14
Cash flow from operating activities	116	141
of which cash flow related to internal portfolio management and excluded from Free Cash Flow	-8	-55
Acquisition (-) of investments - Other	-	-8
Loans to associates and non-consolidated companies	-1	1
Sale (+) of subsidiaries and investments	-1	11
Acquisition (-) of tangible and intangible assets (capex)	-52	-45
of which property, plant and equipment	-49	-43
of which intangible assets	-3	-2
of which capital expenditures required for the Partial Demerger and excluded from Free Cash Flow	-	-2
Sale (+) of property, plant and equipment & intangible assets	3	-
Changes in non-current financial assets	-	1
Cash flow from investing activities	-51	-40
Acquisition (-) / sale (+) of treasury shares	-13	3
Increase in borrowings	6	167
Repayment of borrowings	-22	-46
Changes in other financial assets	-	10
Payment of lease liabilities	-16	-16
Net interests received/(paid)	-5	-15
Dividends paid	-101	-170
of which to Solvay shareholders	-101	-170
Other	-	-72
Cash flow from financing activities	-152	-141
Net change in cash and cash equivalents	-86	-39
Currency translation differences	-2	-2
Opening cash balance	539	584
Closing cash balance	451	543

Consolidated statement of financial position	2025	2024
	March	December
(in € million)	31	31
Intangible assets	209	217
Goodwill	782	782
Property, plant and equipment	2,111	2,150
Right-of-use assets	346	264
Equity instruments measured at fair value	57	63
Investments in associates & joint ventures	225	216
Other investments	29	29
Deferred tax assets	5	301
Loans & other assets	215	221
Non-current assets	3,979	4,243
Inventories	641	623
Trade receivables	811	826
Income tax receivables	52	51
Other financial instruments	16	16
Other receivables	395	396
Cash & cash equivalents	451	539
Current assets	2,365	2,451
Total assets	6,345	6,694
Share capital	237	237
Share premiums	174	174
Other reserves	949	928
Non-controlling interests	66	65
Total equity	1,425	1,404
Provisions for employee benefits	673	674
Other provisions	544	556
Deferred tax liabilities	-151	136
Financial debt	2,093	1,983
Other liabilities	49	54
Non-current liabilities	3,207	3,402
Other provisions	285	315
Financial debt	127	155
Trade payables	783	810
Income tax payables	40	43
Dividends payables	6	107
Other liabilities	472	458
Current liabilities	1,712	1,888
Total equity & liabilities	6,345	6,694

Events after the reporting period

On April 3, Solvay received the final decision of the arbitration tribunal in a proceeding resulting from a past M&A involving the divestment of a shareholding in a discontinued business activity. Considered as an adjusting event and as the final amount was lower than the existing provision, a \$6.3 million impact was recorded in Q1 2025 financial statements. The amount was classified as "Result from portfolio management & major restructuring". The payment has been settled in Q2 2025 and will be excluded from the Free Cash Flow as related to a past M&A transaction.

Declaration by responsible persons

Philippe Kehren, Chief Executive Officer, and Alexandre Blum, Chief Financial Officer, of the Solvay Group, declare that to the best of their knowledge:

The condensed consolidated financial information reflects a faithful image of the assets and liabilities, financial situation and results of the Solvay Group;
The management report contains a faithful presentation of significant events occurring during 2025, and their impact on the condensed consolidated financial information.
The main risks and uncertainties are in accordance with the assessment disclosed in the Risk Management section of the Solvay 2024 Annual Integrated Report, taking into account the current economic and financial environment.

Glossary

Adjustments: Each of these adjustments made to the IFRS results is considered significant in nature and/or value. Excluding these items from the profit metrics provides readers with relevant additional information on the Group's underlying performance over time because it is consistent with how the business' performance is reported to the Board of Directors and the Executive Leadership Team. These adjustments consist of:

Results from portfolio management and major restructurings,
Results from legacy remediation and major litigations,
Major change in environmental provision at open sites,
Amortization of intangible assets resulting from Purchase Price Allocation (PPA) and inventory step-up in gross margin,
Net financial results related to changes in discount rates and debt management impacts (mainly including gains/(losses)) related to the early repayment of debt,
Adjustments of equity earnings for impairment gains or losses, unrealized foreign exchange gains or losses on debt and contribution to IFRS equity earnings of equity investments disposed of in the period,
Results from equity instruments measured at fair value, and re-measurement of the long-term incentive plans related to Syensqo Group shares and the related hedging instruments.
Gains and losses, related to the management of the CO2 hedges not accounted for as Cash Flow Hedge, deferred in adjustments until the maturity of the economic hedge.
Tax effects related to the items listed above and tax expense or income of prior years.
The impact of the Group's share of significant equity investments in the consolidated financial statements beginning in Q1 2024.

All adjustments listed above apply to both continuing and discontinuing operations and include the impacts on noncontrolling interests.

Basic earnings per share: Net income (Solvay's share) divided by the weighted average number of shares, after deducting own shares purchased to cover Long Term Incentive programs.

Capital expenditure (Capex): Cash paid for the acquisition of tangible and intangible assets presented in cash flows from investing activities, and cash paid on the lease liabilities (excluding interests paid), presented in cash flows from financing activities, excluding acquisition of assets associated with the Partial Demerger project. This indicator is used to manage capital employed in the Group.

Cash conversion: Is a ratio used to measure the conversion of EBITDA into cash. It is defined as (Underlying EBITDA + Capex from continuing operations) / Underlying EBITDA.

CGU: Cash-generating unit

Diluted earnings per share: Net income (Solvay's share) divided by the weighted average number of shares adjusted for the effects of dilution.

Discontinued operations: Component of the Group which the Group has disposed of, or which is classified as held for sale, and:

Represents a separate major line of business or geographical area of operations;
Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or
Is a subsidiary acquired exclusively with a view to resale.

EBIT: Earnings before interest and taxes. Performance indicator that is a measure of the Group's operating profitability irrespective of the funding's structure.

EBITDA: Earnings before interest and taxes, depreciation and amortization. The Group has included EBITDA as an alternative performance indicator because management believes that the measure provides useful information to assess the Group's operating profitability as well as the Group's ability to generate operating cash flows.

Free cash flow: Cash flows from operating activities (excluding cash flows linked to acquisitions or disposals of subsidiaries, cash outflows of Voluntary Pension Contributions, as they are deleveraging in nature as a reimbursement of debt and cash flows related to internal management of portfolio such as one-off external costs of internal carveout and related taxes…), cash flows from investing activities (excluding cash flows from or related to acquisitions, and disposals of subsidiaries, and cash flows associated with the Partial Demerger project), and other investments, and excluding loans to associates and non-consolidated investments, and recognition of factored receivables), payment of lease liabilities, and increase/decrease of borrowings related to environmental remediation.

Free cash flow to Solvay shareholders: Free cash flow after payment of net interests, and dividends to non-controlling interests. This represents the cash flow available to Solvay shareholders, to pay their dividend and/or to reduce the net financial debt.

Free cash flow conversion: Calculated as the ratio between the free cash flow to Solvay shareholders of the last rolling 12 months (before netting of dividends paid to non-controlling interest) and underlying EBITDA of the last rolling 12 months.

GBU: Global business unit.

HPPO: Hydrogen peroxide propylene oxide, technology to produce propylene oxide using hydrogen peroxide.

IFRS: International Financial Reporting Standards.

LTM: Last twelve months

Leverage ratio: Net debt / underlying EBITDA of last 12 months. Underlying leverage ratio = underlying net debt / underlying EBITDA of last 12 months.

Net cost of borrowings: cost of borrowings netted with interest on loans and short-term deposits, as well as other gains (losses) on net indebtedness.

Net financial debt: Non-current financial debt + current financial debt – cash & cash equivalents – other financial instruments (current and non-current). Underlying net debt includes the Group's share of net debt from significant equity investments (see Adjustments above). It is a key measure of the strength of the Group's financial position and is widely used by credit rating agencies.

Net financial charges: Net cost of borrowings and costs of discounting provisions (namely, related to post-employment benefits and Health Safety and Environmental liabilities).

Net pricing: The difference between the change in sales prices versus the change in variable costs.

Net sales: Sales of goods and value-added services corresponding to Solvay's know-how and core business. Net sales exclude Revenue from non-core activities.

Net working capital: Includes inventories, trade receivables and other current receivables, netted with trade payables and other current liabilities.

OCI: Other Comprehensive Income.

Organic growth: Growth of Net sales or underlying EBITDA excluding scope changes (related to small M&A not leading to restatements) and forex conversion effects. The calculation is made by rebasing the prior period at the business scope and forex conversion rate of the current period.

pp: Unit of percentage points, used to express the evolution of ratios.

PPA: Purchase Price Allocation (PPA) accounting impacts related to acquisitions.

Result from legacy remediation and major litigations: It includes:

The remediation costs not generated by on-going production facilities (shutdown of sites, discontinued productions, previous years' pollution), and
The impact of significant litigations

Results from portfolio management and major restructuring: It includes:

Gains and losses on the sale of subsidiaries, joint operations, joint ventures, and associates that do not qualify as discontinued operations;
Acquisition costs of new businesses;
One-off operating costs related to internal management of portfolio (carve-out of major lines of businesses);
Gains and losses on the sale of real estate not directly linked to an operating activity;
Restructuring charges driven by portfolio management and by major reorganization of business activities, including impairment losses resulting from the shutdown of an activity or a plant;
Impairment losses resulting from testing of Cash Generating Units (CGUs);

It excludes non-cash accounting impact from amortization and depreciation resulting from the purchase price allocation (PPA) from acquisitions.

Revenue from non-core activities: Revenues primarily comprising commodity and utility trading transactions, non-core licensing transaction, and other revenue considered not to correspond to Solvay's core business.

ROCE: Return on Capital Employed, calculated as the ratio between underlying EBIT (before adjustment for the amortization of PPA) and capital employed. Capital employed consists of net working capital, tangible and intangible assets, goodwill, rights-of-use assets, investments in associates & joint ventures and other investments, and is taken as the average of the situation at the end of the last 4 quarters.

Underlying: Underlying results are deemed to provide a more comparable indication of Solvay's fundamental performance over the reference periods. They are defined as the IFRS figures adjusted for the "Adjustments" as defined above. They provide readers with additional information on the Group's underlying performance over time as well as the financial position and they are consistent with how the business' performance and financial position are reported to the Board of Directors and the Executive Committee.

Underlying Tax rate: Income taxes / (Result before taxes – Earnings from associates & joint ventures) – all determined on an Underlying basis. The adjustment of the denominator regarding associates and joint ventures is made as these contributions are already net of income taxes. This provides an indication of the tax rate across the Group.

Voluntary pension contributions: Contributions to plan assets in excess of Mandatory Contributions to employee benefits plans. These payments are discretionary and are driven by the objective of value creation. These voluntary contributions are excluded from free cash flow as they are deleveraging in nature as a reimbursement of debt. yoy: Year on year comparison.

Contacts

Investor relations Media relations

Boris Cambon-Lalanne +32 471 55 37 49

Geoffroy d'Oultremont +32 478 88 32 96

[email protected]

Peter Boelaert +32 479 30 91 59

Laetitia Van Minnenbruggen +32 484 65 30 47

Valérie Goutherot +33 6 77 05 04 79

[email protected]

Safe harbor

This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties relating to a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals, regulatory approval processes, all-in scenario of R&I projects and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update or revise any forwardlooking statements.

About Solvay

Solvay, a pioneering chemical company with a legacy rooted in founder Ernest Solvay's pivotal innovations in the soda ash process, is dedicated to delivering essential solutions globally through its workforce of around 9,000 employees. Since 1863, Solvay harnesses the power of chemistry to create innovative, sustainable solutions that answer the world's most essential needs such as purifying the air we breathe and the water we drink, preserving our food supplies, protecting our health and well-being, creating eco-friendly clothing, making the tires of our cars more sustainable and cleaning and protecting our homes. As a world-leading company with €4.7 billion in underlying net sales in 2024 and listings on Euronext Brussels and Paris (SOLB), its unwavering commitment drives the transition to a carbon-neutral future by 2050, underscoring its dedication to sustainability and a fair and just transition. For more information about Solvay, please visit solvay.com or follow Solvay on LinkedIn.

Useful links

www.solvay.com May 8, 2025 | First quarter 2025 financial report 21

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