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    Chetan Udeshi • JPMorgan Chase & Co.

    Chetan Udeshi's questions to Solvay SA (SLVYY) leadership

    Chetan Udeshi's questions to Solvay SA (SLVYY) leadership • Q1 2025

    Question

    Chetan Udeshi of JPMorgan Chase & Co. sought an explanation for the volatility in the corporate cost line, asked for the current size of the rare earths business and its sensitivity to metal prices, and questioned why soda ash volumes were weak when container glass customers were seeing positive trends.

    Answer

    CEO Philippe Kehren clarified that there was no soda ash market share loss, attributing the weak volume comparison to opportunistic sales in Q1 2024 when China was importing. CFO Alexandre Blum explained the corporate line's volatility is due to one-off items and guided to a normalized annual run rate of €70-€90 million. Mr. Kehren added that the Special Chem business is about 12% of revenue, but the new rare earth project is currently marginal.

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    Chetan Udeshi's questions to Solvay SA (SLVYY) leadership • Q2 2024

    Question

    Chetan Udeshi inquired about the expected EBITDA trend from Q2 to Q3, the typical seasonality for the new Solvay, and the details behind the large provision for the Dombasle energy project cost overrun.

    Answer

    CEO Philippe Kehren stated that Q3 volumes are expected to be stable and in line with Q2, with cost savings balanced by transformation spending. CFO Alexandre Blum clarified the Dombasle provision totals EUR 78 million and is considered final after a full reassessment, attributing the overrun to project complexity and external headwinds. Kehren added that other energy transition projects are on track.

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    Chetan Udeshi's questions to Solvay SA (SLVYY) leadership • Q1 2024

    Question

    Chetan Udeshi of JPMorgan Chase & Co. asked for an update on remaining separation cost cash-outs and questioned why the Basic Chemicals segment maintained a high 28% margin at a trough compared to the weaker Performance Chemicals margin.

    Answer

    CFO Alexandre Blum stated that less than EUR 50 million in separation costs remain to be paid in 2024. CEO Philippe Kehren explained that the Basic Chemicals segment is highly capital-intensive, thus requiring higher margins to justify investment. He noted the Performance Chemicals margin is less capital-intensive and currently weighed down by the Coatis business, which is at a cyclical low.

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