LANXESS : Ergebnisse Dokument (2024 Q1 LANXESS Results Presentation final)

LANXESS - Q1 2024 results

Trend turns positive - measures take grip and the industry softly improves

Matthias Zachert, CEO

Oliver Stratmann, CFO

Safe harbor statement

The information included in this presentation is being provided for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to purchase, securities of LANXESS AG. No public market exists for the securities of LANXESS AG in the United States.

This presentation contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors, nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation

or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

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Agenda

1 Review Q1 2024 and outlook

1. Financial and business details Q1 2024
2. Appendix

3

Q1 performance sequentially improved but still below Q1 2023 - bottom reached

• Demand improving

Sales

+12% seq

EBITDA pre

+4% seq

€ m

€ m

with effect on

1,607

1,899

1,436

189

101

97

working capital

Q1 2023

Q4 2023

Q1 2024

Q1 2023

Q4 2023

Q1 2024

Implementation of cost

Urethanes divestment

savings

-45%

process

As planned



Well on track



FY 2023

FY 2022

4

First signs of volume improvements visible, however agro destocking weighs on Consumer Protection

• Sales increase 12% sequentially, driven by 13% higher volumes and only slight price declines

Sequential development

Consumer

Protection

Specialty

Additives

Advanced

Intermediates

Sales	EBITDA pre
		Q4/23			Q1/24
			[€ m]
+0%		50	49	-2%

+15%	41	48
	+17%

+25%	24	37
+54%

Demand increase in other markets almost offsets agro destocking

Improved demand in other industries overcompensates construction softness

Demand picks up in many markets. Broad customer industries support

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FY 2024 guidance:

EBITDA pre expected to increase by 10-20%

Our view on economic environment

• Demand has stabilized and is starting to pick up

 Burden from agro cudestomers'cking intensifiesdestockingandcontinuesis expected to continue into Q2

LANXESS outlook

• FY guidance: EBITDA pre expected to grow by 10-20% (incl. BU URE)
• FY guidance: EBITDA pre expected to grow by 10-20%
• EBITDA pre expected to sequentially increase in Q2 and Q3,
• Q2 EBITDA pre expected around €150 m with further increase in H2 with normal seasonality in Q4
• Continued focus on cash generation
• Continued focus on cash generation
• • Balanced working capital approach
  • Balanced working capital approach
  • Strong capex discipline
  • Strong capex discipline

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Agenda

1 Review Q1 2024 and outlook

1. Financial and business details Q1 2024
2. Appendix

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LANXESS Group: Q1 EBITDA bottoming out, operational improvement visible

Volume increase in Advanced Intermediates

Price Volume FX Portfolio

-9% -5% -1% 0%

Total -15%

Q1 Sales vs. PY

		2023	2024
	[€ m]	Q1	Q4		Q1	Δ YOY
	Sales	1,899	1,436	1,607	-15%
	EBITDA pre	189	97	101	-47%
	Margin	10.0%	6.8%	6.3%
	Capex	59	132	39	-34%

• Lower sales prices driven by pass through of input costs
• While volumes picked up sequentially, yoy comparison reflects still stronger Q1 of previous year
• EBITDA pre and margin declined on basis of lower prices and volumes; ramp up of structural savings does not yet outweigh reduction of temporary savings

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§Consumer Protection: EBITDA stable sequentially

Agro-destocking is sequentially offset by pick-up in other markets

Price Volume FX Portfolio

-5% -16% -1% 0%

Total -21%

Q1 Sales vs. PY

	2023	2024
[€ m]	Q1	Q4	Q1	Δ YoY
Sales	647	508	509	-21%	§
EBITDA pre	94	50	49	-48%
Margin	14.5%	9.8%	9.6%
Capex	17	34	12	-29%

• YoY volume decline in all BUs, mainly in BU SGO due to intensified agro destocking and F&F still limited by steam supply outage
• Massive agro-destocking is sequentially offset by pick-up in other markets
• EBITDA pre and margin decline based on lower volumes, especially for agro end market

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Specialty Additives: Moderate pick-up sequentially

Sequentially improving despite construction weakness

Price Volume FX Portfolio

-10% -4% -1% 0%

Total -15%

Q1 Sales vs. PY

		2023	2024
	[€ m]	Q1	Q4		Q1	Δ	YoY
	Sales	664	492	566	-	15%
	EBITDA pre	98	41	48	-	51%
	Margin	14.8%	8.3%	8.5%
	Capex	23	45	14	-	39%

• Lower prices in all BUs, mainly due to pass through and market weakness
• Slightly lower volumes reflect continued weakness in construction
• Sequentially all BUs with increasing sales
• EBITDA pre and margin compared against still relatively strong previous year especially for flame retardants

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