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    Alex Stewart

    Director and Senior Equity Research Analyst at Barclays

    Alex Stewart is a Director and Senior Equity Research Analyst at Barclays, specializing in chemicals sector research with deep coverage of European specialty chemicals companies. He actively covers notable firms such as Solvay and Croda International, regularly issuing investment ratings and price targets that shape market sentiment. Stewart joined Barclays as a senior analyst and has established a track record for timely market calls, such as his recent downgrade of Solvay, which garnered attention in industry research circles; however, specific quantitative performance metrics or rankings are not publicly cited. His professional credentials and prior career history are not specified in available public records, though his role at Barclays underscores significant expertise in financial analysis and chemicals market fundamentals.

    Alex Stewart's questions to SOLVAY S A /ADR/ (SLVYY) leadership

    Alex Stewart's questions to SOLVAY S A /ADR/ (SLVYY) leadership • Q1 2025

    Question

    Alex Stewart of Barclays PLC asked about the technical ease of shutting down and restarting synthetic soda ash plants and the risk of Chinese producers continuing to run them. He also questioned the large €105 million lease liability for a German plant and the rationale for leasing over purchasing.

    Answer

    CEO Philippe Kehren explained that while a restart is technically possible, he expects structural shutdowns in China due to non-competitive, environmentally challenged assets. CFO Alexandre Blum clarified that leasing the Rheinberg asset aligns with their capital allocation framework, spreading the cash impact over time to protect the dividend and matching annual incentives available in Germany.

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    Alex Stewart's questions to SOLVAY S A /ADR/ (SLVYY) leadership • Q1 2025

    Question

    Alex Stewart from Barclays asked about the technical feasibility of shutting down and restarting synthetic soda ash plants and questioned the rationale for the large lease liability for a German plant conversion instead of an outright purchase.

    Answer

    CEO Philippe Kehren explained that while a restart is technically possible, the required restructuring in China is structural due to new competitive capacity. CFO Alexandre Blum clarified that leasing the Reinberg asset is a capital allocation strategy to spread the cash impact over time, protect the dividend, and align with German government incentives, rather than a one-time large CapEx hit.

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    Alex Stewart's questions to SOLVAY S A /ADR/ (SLVYY) leadership • Q1 2025

    Question

    Asked about the technical feasibility and likelihood of Chinese synthetic soda ash plants shutting down, the rationale for the large lease liability for a German plant conversion, and why leasing was chosen over purchasing.

    Answer

    While plant shutdowns are technically complex, the necessary restructuring in China is structural, driven by new competitive capacity, meaning some noncompetitive plants will likely shut down permanently. The large lease for the Reinberg plant is a financing strategy to spread cash flow over a long period, protect the dividend, and align with German incentives, with the total cost being similar to an outright purchase.

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    Alex Stewart's questions to SOLVAY S A /ADR/ (SLVYY) leadership • Q2 2024

    Question

    Alex Stewart asked for details on the strong Performance Chemicals EBITDA, questioning if Q2's EUR 100 million result is a new normal. He also asked if normalized corporate costs should be lower than guidance given that a large provision was absorbed within the current range.

    Answer

    CEO Philippe Kehren attributed the strong performance to opportunities in silica and Special Chem (autocatalysis), suggesting a normal run rate is likely between Q1 and Q2 levels. CFO Alexandre Blum reiterated the EUR 80-100 million corporate cost guidance remains the correct run rate, as the Q2 provision was offset by other non-structural and structural savings.

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    Alex Stewart's questions to SOLVAY S A /ADR/ (SLVYY) leadership • Q2 2024

    Question

    Alex Stewart asked for details on the significant quarter-on-quarter EBITDA growth in Performance Chemicals, particularly regarding product mix and phasing in Special Chem, and what should be considered a 'normal' EBITDA run rate for the segment.

    Answer

    CEO Philippe Kehren attributed the strong performance to unexpectedly robust demand in autocatalysis, good volumes in silica for tires, and sales in niche medical applications. He acknowledged some of this could be due to phasing or restocking. When asked for a normal EBITDA run rate between Q1's €80 million and Q2's €101 million, he suggested it was 'probably somewhere in between,' implying the Q2 level was elevated by specific opportunities.

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    Alex Stewart's questions to SOLVAY S A /ADR/ (SLVYY) leadership • Q1 2024

    Question

    Alex Stewart of Barclays questioned the low net financing cost in the Q1 free cash flow bridge and asked if the strength in the seaborne Soda Ash market was driven by China's unusual status as a net importer.

    Answer

    CFO Alexandre Blum explained that the Q1 interest cash-out was low due to the phasing of payments on the bridge loan and that the normalized annual run rate is approximately EUR 100 million. CEO Philippe Kehren acknowledged China's temporary import status but stated Solvay does not consider it a long-term trend and that its impact was modest, helping to offset softness in other regions.

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