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    Alex Stewart • Barclays

    Alex Stewart's questions to Solvay SA (SLVYY) leadership

    Alex Stewart's questions to Solvay SA (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 SA (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 SA (SLVYY) leadership • Q1 2024

    Question

    Alex Stewart from Barclays questioned the low net financing cost in the free cash flow bridge and asked if the strength in the seaborne Soda Ash market was driven by an unusually tight supply situation in China.

    Answer

    CFO Alexandre Blum explained the low Q1 interest cash-out was due to payment phasing on a bridge loan, noting the normalized annual run rate is about EUR 100 million. CEO Philippe Kehren acknowledged China's unusual status as a net importer but stated Solvay does not consider this a long-term structural trend and its impact on Solvay's volumes was not major.

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