Solvay Sa · EURONEXT:SOLB
Solvay Sa — Shareholder Meeting (May 2020)
28 slides from Solvay Sa's shareholder meeting presentation, May 12, 2020
Slide 1: 2020 General Shareholders' Meeting
2020 General Shareholders’ Meeting Dr. ILHAM KADRI Chairwoman of the Executive Committee & Chief Executive Officer 1
Slide 2: Part 1: Four Quarters at a Glance
PART 1 Four Quarters at a Glance 2 2020 Annual Shareholders Meeting 12 May 2020
Slide 3: We Renewed our Foundations
We Renewed our Foundations • Simplified Executive • The Executive • Record 2019 FCF of €606 • Polyamides divested Committee with Committee decides million (FCF to Solvay shareholders from continuing • Debt reduced and Funding OPERATIONAL new accountabilities on capital and operations) US/FR/UK pensi
Slide 4: Part 2: Our "raison d'être"
PART 2 Our “raison d’être” 4 2020 Annual Shareholders Meeting 12 May 2020
Slide 5: From science will derive the progress of mankind
”FROM SCIENCE WILL DERIVE THE PROGRESS OF MANKIND “
Slide 6: Our Purpose and Vision
Our Purpose WE BOND PEOPLE, IDEAS AND ELEMENTS TO REINVENT PROGRESS Our Vision Sustainable shared value for all
Slide 7: G.R.O.W. three new reporting segments
G.R.O.W. three new reporting SEGMENTS G Accelerate Growth MATERIALS Electrification Lightweighting >€25B >€10B Deliver Resilient cash R CHEMICALS Resource efficiency Healthcare € > 50B >€10B Optimize Returns O SOLUTIONS IoT/ Eco-friendly Digitalization solutions Win W SOLVAY ONE >€50B >€10B Megatren
Slide 8: New differentiated Strategic Mandates
New differentiated Strategic Mandates Accelerate Deliver Optimize Growth Resilient cash returns Materials Chemicals Solutions 35% ~28% ~17% #1 38% ~27% #1 27% Net EBITDA Net EBITDA Net EBITDA Sales margin pure-play sales margin cash sales margin advanced conversion Unlock materials chemical value 67
Slide 9: Climate, Resources, Better Life
CLIMATE MSCI ESG SUSTAINALYTIC FTSE4GOOD WBCSD S AAA #2 out of 42 92nd percentile Top 10 (AAA-CCC scale) Science and research play an important role to tackle the world’s environmental and health challenges RESOURCES and I'm particularly happy that Solvay is leading the way. Bertrand Piccard, Chairm
Slide 10: Our 2030 Sustainability Goals
Our 2030 Sustainability Goals Align greenhouse gas emissions with Paris Agreement Reduce by 26% (-2%/y) CLIMATE Phase out coal Achieve 100% Reduce negative pressure on biodiversity 30% reduction Achieve 65% vs 50% Increase Sustainable Solutions revenues Increase Circularity Achieve 15% vs 7% RESOURC
Slide 11: Part 3: 2019 Performance
PART 3 2019 Performance 11 2020 Annual Shareholders Meeting 12 May 2020
Slide 12: 2019 A Year of Resilience
2019 A Year of Resilience We delivered on our Financial Promises FCF to Annual Net Sales Underlying EBITDA gross dividend shareholders EBITDA margin continuing operations recommendation € € € 10bn 2.3bn 23% € 606m 3.75 -2% -2.8% stable +€40m stable organically organically … and over delivered on our
Slide 13: Part 4: Q1 2020 Performance
PART 4 Q1 2020 Performance 13 2020 Annual Shareholders Meeting 12 May 2020
Slide 14: Our Strong Performance continued in Q1 2020
Our Strong Performance continued in Q1 2020 Net FCF to Solvay Underlying Profit Sales shareholders from continuing operations of the period from continuing operations 2020 € € € Guidance 2.5bn 202m 226m withdrawn -4% +€293m +4.6% Underlying EBITDA Proceeds Coronavirus EBITDA margin Polyamides sale i
Slide 15: We improve our Financial robustness
We improve our Financial robustness € + 460m Underlying € net debt in pension 4bn -€700m funds vs Dec 2019 Debt Pensions Liquidity Low Next Low refinancing Maturity: refinancing -€60m lower cash €500m risk cash out out hybrid in June in 2020 2021 S&P Moody’s Investment BBB Baa2 Grade Stable outlook
Slide 16: Part 5: Response to COVID-19
PART 5 Response to COVID-19 16 2020 Annual Shareholders Meeting 12 May 2020
Slide 17: Protecting People
Protecting People People • Barrier measures in place • Temperature controls • Mandatory teleworking where possible • Disinfection protocols • Health and Hygiene education • 9 employees infected today • 147 employees in quarantine • Delaying deconfinement to July 1st at the earliest 17 2020 Annual Sh
Slide 18: Bonding with our Employees
BONDING with our People EMPLOYEES ... HR Support • Up to one-month gross base pay if employee is on medical leave due to COVID-19 • Equal health benefits to employees continue • 70% of gross monthly base pay for up to three months during furlough Staying Connected weekly Q&A sessions with Ilham Kadr
Slide 19: Bonding with Communities
… BONDING with COMMUNITIES... People Masks Personal 350,000 114,000 Protection Equipment Bottles of hand sanitizer 1,000,000 6,700 Materials for reusable face shields 700,000l H2O2 disinfecting cleaning solutions 19 2020 Annual Shareholders meeting 12 May 2020
Slide 20: Bonding with Customers
… and BONDING with CUSTOMERS Business Continuity UDELⓇ RADELTM CYCOMⓇ prepreg Solvay insideⓇ Solvay insideⓇ Polymer for hemodialysis Face Shields to protect Strike protection Testing kit & antiviral drug Cough suppressant membranes against COVID-19 surfacing film COVID-19 drugs HyflonⓇ FomblinⓇ Inte
Slide 21: Learnings from COVID-19
LEARNINGS from COVID-19 Business Continuity We are We leverage our We are agile through our We embrace a “Essential” Global Presence Crisis Response New Normal and Experience Team 21 2020 Annual Shareholders Meeting 12 May 2020
Slide 22: Exceptional times, Exceptional measures
Exceptional times, Exceptional measures Business Continuity First plans in place to address reduced activity levels Align production rates Align workforce activity Align Capex to volume to order book levels to service levels demand levels • ~10% of our sites globally • 5,000 employees on • Reduce by
Slide 23: Part 6: Solvay Solidarity Fund
PART 6 Solvay Solidarity Fund 23 2020 Annual Shareholders Meeting 12 May 2020
Slide 24: Solvay Solidarity Fund
Solvay Solidarity Fund What a wonderful example of leadership, vision and Donations exceed €15 million stakeholder capitalism. Chapeau! BNP PARIBAS FORTIS Strong support from • Chairman and Directors • Senior management Solvay shows we are one. We stay • Employees together in good and bad times. • S
Slide 25: Part 7: Why invest in Solvay
PART 7 Why invest in Solvay 25 2020 Annual Shareholders Meeting 12 May 2020
Slide 26: Why invest?
Why invest? Talents with Values Future growth Customer potential fuelled partnerships Passion for Performance by megatrends drive innovation Global scale, diversity of products Key leadership Unity, not and end-markets, positions Uniformity reliable infrastructure Proven Bold ESG Purposeful resilien
Slide 27: Emerge Stronger as ONE Group
Emerge Stronger as ONE Group 27
Slide 28: Progress beyond
Progress beyond www.solvay.com