Forecast for the segments

In the Chemicals segment, we expect a slight decline in EBITDA before special items in 2025 due to higher fixed costs in the Petrochemicals division, primarily related to the startup of the new Verbund site in Zhanjiang, China. Furthermore, a lower earnings contribution from our equity-accounted investment in Nanjing, China, mainly the consequence of scheduled turnarounds, will burden EBITDA before special items for the division. The anticipated strong earnings growth in the Intermediates division, primarily due to higher sales volumes and margins for amines, will only partially offset this. We assume a considerable improvement in the segment cash flow compared to 2024. We plan to reduce capital expenditures for Zhanjiang, which could more than offset the impact on earnings and the expected buildup of inventories in connection with the startup of the new Verbund site in China.

Compared with 2024, we anticipate a slight increase in EBITDA before special items for the Materials segment. This will be attributable to targeted volume growth coupled with stable margins in the Performance Materials division. For the Monomers division, we are forecasting earnings at the prior-year level. While the division also aims to increase volumes, slightly rising fixed costs are expected to counteract this. We plan to largely offset the higher fixed costs associated with the startup of the HMD plant in Chalampé, France, and inflation through ongoing efficiency measures and rigorous cost discipline. Segment cash flow is expected to remain on a level with the previous year. The assumed considerable increase in cash flow in the Monomers division is expected to offset the anticipated considerable decline in the Performance Materials division, primarily due to rising capital expenditures and a higher amount of cash tied up in working capital.

In the Industrial Solutions segment, EBITDA before special items is expected to increase slightly. This is attributable to the anticipated considerable earnings growth in the Performance Chemicals division, primarily due to higher volumes. In addition, the division plans to reduce fixed costs through ongoing restructuring measures. A slight decline in earnings is anticipated for the Dispersions & Resins division due to continued competitive pressure on margins. The ongoing cost savings program is expected to offset the division’s inflation-related increase in fixed costs. Segment cash flow is anticipated to be slightly below the prior-year level. In the Dispersions & Resins division, this will likely be mainly attributable to lower earnings and higher capital expenditures in the electronic materials business. In the Performance Chemicals division, higher capital expenditures in the chemical and process catalysts business are expected to more than offset the positive impact of earnings growth.

In the Nutrition & Care segment, we anticipate slightly higher EBITDA before special items in 2025, primarily as a result of increased margins in the Nutrition & Health division. Earnings in the Care Chemicals division are expected to be on a level with 2024. Segment cash flow is likely to be negative again in 2025. In the Nutrition & Health division, we anticipate a higher amount of cash to be tied up in working capital in connection with preparations for the restart of the isophytol plant in Ludwigshafen, Germany. It is unlikely that the projected considerable improvement in cash flow in the Care Chemicals division will be able to compensate for this.

For the Surface Technologies segment, we anticipate a mainly volume-related improvement in earnings across all divisions. Segment cash flow is expected to be considerably above the prior-year level. This is due to the projected development in the Coatings and Battery Materials divisions. In the Coatings division, this is expected to be mainly attributable to a reduction in inventories and lower special charges. In 2024, significant special charges were incurred in connection with the conversion of the ERP system. The Battery Materials division anticipates an increase in cash flow, particularly due to the forecast earnings improvement and significantly reduced capital expenditures. In the ECMS division, we anticipate considerably lower cash flow due to expected reduced positive effects from working capital compared with the previous year.

In the Agricultural Solutions segment, we expect EBITDA before special items in 2025 to be slightly above the level of 2024. Higher sales volumes due to gradual normalization of channel inventories are expected to more than offset the inflation-related rise in fixed costs. In addition, we expect to see an improvement in the glufosinate-ammonium business compared with 2024. We expect segment cash flow to decline considerably compared with 2024, primarily due to lower positive contributions from inventories.