Covestro AG · VIE:1COV
Covestro — Q3 2025 Earnings Presentation
52 slides from Covestro's earnings presentation, November 2025
Slide 1: Delivering on cost savings – Roadshow presentation
Delivering on cost savings Roadshow presentation covestro.com Q3 2025 │ IR Roadshow Presentation 0
Slide 2: Covestro investment highlights
Covestro investment highlights Group financials Q3’25 Segment overview Background information covestro.com Q3 2025 │ IR Roadshow Presentation 1
Slide 3: Covestro is diversified across geographies and end-markets
Covestro is diversified across geographies and end-markets Key performance indicators and sales split €14bn €1.1bn €0.1bn -7pp Sales EBITDA FOCF ROCE above WACC 2024 2024 2024 2024 2024 sales Automotive & Sports / leisure, transportation cosmetics, health, APAC EMLA 18% diverse industries Other 30%
Slide 4: Covestro is a global leader across its entire portfolio
Covestro is a global leader across its entire portfolio World-wide industry positions and production capacities KEY MARKETS Aliphatic Polyurethane MDI TDI Polyether polyols PC isocyanates dispersions CAPACITY SHARE IN 2023(1) Others Others 9% Others 7% 17% Others 21% 20% Others Others 56% 36% 35% 39
Slide 5: A clear connection to customers and our ambitions
A clear connection to customers and our ambitions Our strategy – setting the path for tomorrow Strategy Updated Customer Be a reliable partner for our Grow our product portfolio based Develop sustainable solutions Financial and perspective customers on customers needs for and with our customers non-
Slide 6: Climate neutrality with existing technologies and assets
Climate neutrality with existing technologies and assets Covestro greenhouse gas emissions UPSTREAM DOWNSTREAM Suppliers, Clients, use Transportation Transportation raw materials phase, end of life Indirect emissions Indirect emissions Indirect emissions Indirect emissions Direct emissions Indirect
Slide 7: Sustainable manufacturing and renewable energy to lead path
Sustainable manufacturing and renewable energy to lead path Climate neutrality target for GHG emissions scope 1 and 2 GHG emissions in million metric tons, scope 1 and 2 EMISSION REDUCTION MEASURES 0.1 • Three main levers make a vital contribution to reduce GHG emissions: More sustainable manufactur
Slide 8: Numerous measures effectively reduce GHG emissions
Numerous measures effectively reduce GHG emissions Climate neutrality target for GHG emissions scope 1 and 2 MORE SUSTAINABLE MANUFACTURING RENEWABLE ELECTRICITY RENEWABLE STEAM Reducing nitrous oxide EMLA(1): Solar&wind electricity PPA’s Converting steam generation with ENGIE for 60% of site’s powe
Slide 9: Continuously improving global renewable electricity footprint
Continuously improving global renewable electricity footprint Additional PPAs became active end 2024 MILESTONES TO RENEWABLE ELECTRCITY SUPPLY ELECTRICITY TRANSFORMATION PROGRESS GWh 80% PPAs with BP, Engie and Ørsted for 650 EMLA GWh solar and wind energy: +10% 45% of electricity for Antwerp site s
Slide 10: Target reduction of 10m tons GHG until 2035 and net-zero until 2050
Target reduction of 10m tons GHG until 2035 and net-zero until 2050 Climate neutrality target for GHG emissions scope 3 GHG emissions in million metric tons, scope 3 - categories 1, 3, 4, 12(1) EMISSION REDUCTION MEASURES • Four main levers make a vital contribution to reduce 3.6 scope 3 GHG emissio
Slide 11: Strategic levers supporting transformation towards climate neutrality
Strategic levers supporting transformation towards climate neutrality Target for GHG emissions scope 3 FOCUS ON SUPPLIERS ADVANCING MAKE PROJECTS FOCUS ON CUSTOMERS OTHER MEASURES Broaden engagement with Continue innovation & Identify first mover suppliers that achieve digital R&D in renewable custo
Slide 12: Re-shaping the PU value chain for soft foams into a closed loop
Re-shaping the PU value chain for soft foams into a closed loop Innovative recycling / joint solutions COVESTRO TECHNOLOGY FUTURE PU SOFT FOAM LOOP • Chemical recycling of polyurethane (PU) mattress foams, turning Conceptual illustration waste into valuable resources • Proprietary process for recycl
Slide 13: Leading cost positions across markets and regions
Leading cost positions across markets and regions Covestro cash cost positions NORTH AMERICA EUROPE ASIA HIGHLIGHTS Cash cost Cash cost Cash cost • Covestro MDI is one of the low-cost producers with cost MDI(1) advantage of ~20% versus the average of 5 least follower leader ME player (landed WE) lea
Slide 14: GDP outlook for 2025 reflecting economical challenges
GDP outlook for 2025 reflecting economical challenges Global demand development KEY CUSTOMER INDUSTRIES 2024 Y/Y(1) 2025 Y/Y(2) 2025e(3) UPDATE Global GDP +2.9% +2.8% +2.7% Automotive -0.6% +2.7% +1.9% +8.2% +22.4% +25.7% EV / BEV Construction -2.4% +0.2% +0.6% Residential -5.4% -1.5% -1.8% Furnitur
Slide 15: FY 2025 guidance narrowed as usual towards year end
FY 2025 guidance narrowed as usual towards year end Full year guidance 2025 Guidance FY 2025 FY 2024 as of Feb. 26 as of May 6 as of July 11 as of October 30 HIGHLIGHTS EBITDA €1,071m €1,000 to 1,600m €1,000 to 1,400m €700 to 1,100m €700 to 800m Mark-to-market (M2M): FOCF €89m €0 to 300m €0 to 300m
Slide 16: STRONG transformation in progress
STRONG transformation in progress Transformation program STRONG TARGETS FOR COST MEASURES 2024-2028E HIGHLIGHTS target delivered • STRONG was launched in June 2024 to shape target pending 400 Mio. € Covestro for sustainable competitiveness target ambition o Effective structures and efficient process
Slide 17: Majority of cash allocated to growth
Majority of cash allocated to growth Balanced use of cash CAPEX DIVIDEND PORTFOLIO SHARE CAPITAL € € • Covestro’s industry and cost • Policy: 35-55% payout of net • Acquisition of DSM’s Resins • Share buyback of €1.5bn leadership make growth income and Functional Material executed in 2017-2018 inves
Slide 18: Significant investments into growth
Significant investments into growth Group capex and D&A HISTORIC AND PROJECTION HIGHLIGHTS in € million 180%• Growth capex of around €3.3bn from 1350 160% 2015 to 2024 140%• D&A 2024 included impairment write-off of 984 120% €142m ~900 910 894 • Planned investments 700- 823 832 100% Capex = D&A 752
Slide 19: Dividend based on net income payout ratio
Dividend based on net income payout ratio Dividend development HIGHLIGHTS 55% • Net income determining factor for the 55% dividend 40% • Committed to a payout ratio of 35% to 35% 1616 55%, related to dividend over net income o Higher payout intended in years with peak earnings, while ratio towards 6
Slide 20: Ongoing shift to high-margin business
Ongoing shift to high-margin business Portfolio management DIVESTMENTS ACQUISITIONS Additive Manufacturing business Cumulated, in € million DSM Resins & Functional Materials business in € million April 2023 April 2021 ~960 Dubai system house(1) Pontacol expansion in specialty films July 2021 August
Slide 21: Delivering on cost savings – Q3 2025 Highlights
Delivering on cost savings Q3 2025 Highlights Negative volume development burdened by Dormagen incident and ongoing challenging economic conditions Sales lower at €3.2bn mainly caused by lower prices and unfavorable FX EBITDA of €242m towards upper end of guidance range helped by delivering on our c
Slide 22: Group financials Q3'25
Covestro investment highlights Group financials Q3’25 Segment overview Background information covestro.com Q3 2025 │ IR Roadshow Presentation 21
Slide 23: Self-help and special items softening EBITDA decline
Self-help and special items softening EBITDA decline Group results – Highlights Q3 2025 SALES HIGHLIGHTS Q3 2025 in € million / changes Y/Y • Year-over-year, declining sales (-12.0%) with negative pricing (-7.0%), FX (-3.5%) and also -20.1% -20.9% -22.7% -15.6% -6.2% -0.8% 1.0% 0.9% -0.9% -8.4% -12.
Slide 24: EMLA with lower volumes and persistent economic weakness
EMLA with lower volumes and persistent economic weakness Q3 2025 – Regional split Sales volume Y/Y HIGHLIGHTS • Mostly declining volume development across the key industries: China €779m • Auto low single-digit % increase EMLA €1,217m • Construction low single-digit % decline Volume -8.0% • Electro
Slide 25: Sales decline mainly due to negative pricing and adverse FX
Sales decline mainly due to negative pricing and adverse FX Q3 2025 – Sales bridge in € million HIGHLIGHTS Volume negative -12.0% • Volumes lower at -1.5% Y/Y • Performance Materials with 3.1% Y/Y decline and 3,603 Solutions & Specialties flat (+0.4% Y/Y) Pricing negative -52 • Pricing affected sale
Slide 26: EBITDA stabilized by self-help
EBITDA stabilized by self-help Q3 2025 – EBITDA bridge in € million HIGHLIGHTS Negative volumes -15.7% • Mainly caused by Dormagen fire event leading to volume losses in TDI and basic chemicals 287 Pricing delta -102 Negative pricing delta -17 88 242 • Negative pricing delta due to overall unfavorab
Slide 27: Negative global volume trend persists
Negative global volume trend persists 9M 2025 – Regional split Sales volume Y/Y HIGHLIGHTS • Rather negative volume development year-over- year across the key industries: China €2,216m • Construction flat EMLA €4,088m • Furniture/wood mid-single-digit % decline Volume -4.6% • Electro mid-single-digi
Slide 28: Sales hit by negative pricing and unfavorable FX
Sales hit by negative pricing and unfavorable FX 9M 2025 – Sales bridge in € million HIGHLIGHTS Volume flat -7.2% • Volume flattish with -0.8% Y/Y • Performance Materials with 2.3 Y/Y decline while 10,803 Solutions & Specialties with 0.8% Y/Y increase -84 Pricing negative • Pricing affected sales by
Slide 29: EBITDA burdened by negative pricing delta and FX
EBITDA burdened by negative pricing delta and FX 9M 2025 – EBITDA bridge in € million HIGHLIGHTS Positive volume -26.3% • Focus on profitable business with above average growth whereas loss making business was Pricing delta reduced 37 -275 880 Negative pricing delta • Negative pricing delta due to p
Slide 30: Negative FOCF due to lower EBITDA and higher capex
Negative FOCF due to lower EBITDA and higher capex Historical FOCF development in € million HIGHLIGHTS 1,429 • FOCF 9M 2025 decreased Y/Y to €370m 530 (9M 2024: €-164m) 138 232 89 • Working capital to sales ratio(3) decreased to v 18.5% (9M 2024: 18.6%), driven by lower -370 absolute working capital
Slide 31: Total net debt increase caused by negative FOCF
Total net debt increase caused by negative FOCF September 30, 2025 – Total net debt in € million HIGHLIGHTS 46 • Total net debt to EBITDA ratio(2) of 3.8x at the 370 3,225 end of 9M 2025 compared to 3.0x at the end of -23 9M 2024 -101 2,933 • No financial covenants in place • Committed to a solid in
Slide 32: Segment overview
Covestro investment highlights Group financials Q3’25 Segment overview Background information covestro.com Q3 2025 │ IR Roadshow Presentation 31
Slide 33: Differentiation based on customer proximity and innovation
Differentiation based on customer proximity and innovation Solutions & Specialties PRODUCTS SUCCESS FACTORS BENEFITS FOR GROUP Differentiated polymer products • Maintain leadership in Implement a pull supply chain differentiated niche SALES 2024 (in € million) Use deep customer understanding to appl
Slide 34: Solutions & Specialties – Sales affected by FX and lower prices
Solutions & Specialties – Sales affected by FX and lower prices Segment results – Highlights Q3 2025 SALES HIGHLIGHTS Q3 2025 in € million / changes Y/Y • Sales declined by 7.7% Y/Y, driven by prices -6.2% -3.3% -2.0% -2.9% -1.2% -5.4% -7.7% (-4.3%) and FX (-3.8%) with flat volumes (+0.4%) • Quarter
Slide 35: Continuing shift to differentiated polycarbonate
Continuing shift to differentiated polycarbonate Solutions & Specialties: high-growth contributor Engineering Plastics POLYCARBONATE 2024 SALES €2.9bn ENGINEERING PLASTICS (EP) INDUSTRY +4% CAGR 2024-2029e Covestro polycarbonate volume split by segment CUSTOMER INDUSTRIES GROWTH DRIVERS • Global tre
Slide 36: EBITDA margin to grow
EBITDA margin to grow Solutions & Specialties segment target EBITDA AND MARGIN – SOLUTIONS & SPECIALTIES TARGET MARGIN in € million • EBITDA margin 2024 decreased Y/Y due to 14.7% restructuring efforts and 13.7% cyclical demand weakness 9.9% 9.6% 11.2% Value- RFM based • EBITDA margin growth driven
Slide 37: Standard products with reliable supply and lowest cost
Standard products with reliable supply and lowest cost Performance Materials PRODUCTS SUCCESS FACTORS BENEFITS FOR GROUP Polyurethane and polycarbonate standard • Maintain leadership in products as well as basic chemicals Ensure high asset utilization Covestro core industries Integrated end-2-end pl
Slide 38: Performance Materials – EBITDA helped by insurance booking
Performance Materials – EBITDA helped by insurance booking Segment results – Highlights Q3 2025 SALES HIGHLIGHTS Q3 2025 in € million / changes Y/Y • Sales declined (-16.2%) Y/Y, driven by lower -5.7% 2.5% 4.1% 5.2% -0.7% -11.8% prices (-9.8%), FX (-3.3%) and volumes (-3.1%) -16.2% • Quarter-over-qu
Slide 39: MDI market moving to balance
MDI market moving to balance Performance Materials: MDI industry demand and supply MDI DEMAND DEVELOPMENT (2019 - 2029e) MDI SUPPLY DEVELOPMENT (2019 - 2029e) in kt(1) in kt(2) BASE % growth as CAGR % growth as CAGR BASE 5% HIGH 6% HIGH ~3-4% ~5% ~4% 3% LOW ~3% 4% LOW 10,260 8,790 2019 2024 2029e 20
Slide 40: TDI market moving toward balance
TDI market moving toward balance Performance Materials: TDI industry demand and supply TDI DEMAND DEVELOPMENT (2019 - 2029e) TDI SUPPLY DEVELOPMENT (2019 - 2029e) in kt(1) in kt(2) % growth as CAGR % growth as CAGR BASE BASE ~3% 4% HIGH ~3-4% 4% HIGH ~1% 2% LOW ~1% 3% LOW 3,260 2,670 2019 2024 2029e
Slide 41: Background information
Covestro investment highlights Group financials Q3’25 Segment overview Background information covestro.com Q3 2025 │ IR Roadshow Presentation 40
Slide 42: Led by a diverse, international management team
Led by a diverse, international management team Covestro senior management BOARD OF MANAGEMENT Chief Executive Chief Financial Chief Commercial Chief Technology Officer Officer Officer Officer Dr Markus Steilemann Christian Baier Monique Buch Dr Thorsten Dreier Nationality: German Nationality: Germa
Slide 43: All regulatory approvals granted
All regulatory approvals granted Progress on XRG transaction as of November 21, 2025 SHARE OWNERSHIP REGULATORY APPROVALS MERGER CONTROL APPROVALS Foreign Direct Investment (FDI) / Brazil Foreign Subsidies Regulation (FSR) Pre-closure Canada China 3.44% COMESA Egypt 81.77% >95 % XRG 4.82% EU accumul
Slide 44: Covestro ESG rating results and index membership
Covestro ESG rating results and index membership As of October 2025 Scoring ESG Ratings & Range 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Distinction Indices (Worst Best) D- to A - - - - - A- A- A- C - 73 80 72 71 0 to 100 (1) AA AA AA A A A A A MSCI ESG CCC to AAA BBB BBB (2) 74 75 80 100
Slide 45: Global energy spent projected to be stable at €1.0bn
Global energy spent projected to be stable at €1.0bn Energy cost development QUARTERLY ENERGY COST DEVELOPMENT GLOBAL ENERGY COST HIGHLIGHTS in € million in € billion • Global energy bill in FY 2024 2025 1.8 2024 of €1.0bn, energy 317 demand increased by 259 259 1.0 1.1 1.0 ~1.0 224 243 239 229 ~7%
Slide 46: Synergies in scale, process technology and chemical know-how
Synergies in scale, process technology and chemical know-how One chemical backbone across all segments INFRA- FINAL RAW MATERIALS CORE UNITS / TECHNOLOGY STRUCTURE PRODUCT Phosgene(4) Toluene DNT TDA HIGHLIGHTS Dinitrotoluene Diaminotoluene TDI • State-of-the-art asset base with leading process • Pr
Slide 47: Synergies from chemical backbone and complementary technologies
Synergies from chemical backbone and complementary technologies Solutions & Specialties backward integration and value chain INFRASTRUCTURE MAIN RAW MATERIALS COVESTRO VALUE CHAIN (simplified) Performance Materials Phosgene(2) Phosgene(2) Phosgene(2) Toluene / Benzene • Premises sTDI sMDI sPC Nitric
Slide 48: Entire organization aligned for performance and sustainability
Entire organization aligned for performance and sustainability Group Profit Sharing Plan (PSP) proposed for 2025-2027 BOARD OF MANAGEMENT STI PROPOSAL Old PSP system Based on three- EBITDA FOCF ROCE CO2 2022-2024 year business plan Proposed PSP adjustment 2025-20271 Mid-term component – 50% 1 One-ye
Slide 49: Negative net income due significantly lower EBIT
Negative net income due significantly lower EBIT P&L statement 9M 2025 In € million 9M 2024 9M 2025 % of 9M’25 SALES Y/Y HIGHLIGHTS Sales 10,803 10,027 100% -7.2% Impairments • Q1 2025 impairment loss of EBITDA 880 649 6.5% -26.3% €15m due to closure of the D&A excl. impairments -631 -654 -6.5% 3.
Slide 50: High accumulated free operating cash flow
High accumulated free operating cash flow Development of last five years 2020 2021 2022 2023 2024 Sales (€ million) 10,706 15,903 17,903 14,377 14,179 • Volume y/y (%) -5.1 +6.5 -5.0 -6.8 +7.4 • Price y/y (%) -5.7 +34.7 +10.1 -11.0 -8.0 • FX y/y (%) -1.6 -0.8 +5.9 -2.2 -0.8 • Portfolio y/y (%) -1.3
Slide 51: Upcoming IR events
Upcoming IR events Find more information on covestro.com/en/investors REPORTING DATES • February 26, 2026 2025 Annual Report • May 5, 2026 Q1 2026 Quarterly Statement • July 31, 2026 Q2 2026 Quarterly Statement ANNUAL GENERAL MEETING • April 15, 2026 Annual General Meeting 50 Q3 2025 │ IR Roadshow P
Slide 52: Disclaimer
Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development