Solvay Sa · EURONEXT:SOLB
Solvay Sa — Q2 2015 Earnings Presentation
86 slides from Solvay Sa's earnings presentation, Jul 29, 2015
Slide 1: Q2 2015 results
Q2 2015 results FORENOTE All historic data are restated for comparison purposes, unless otherwise indicated. Solvay presents Adjusted Income Statement performance July 29, 2015 indicators that exclude non- cash Purchase Price Allocation (PPA) accounting impacts related to the Rhodia acquisition.
Slide 2: Safe harbor
Safe harbor This presentation may contain forward- Consequently, actual results or future looking information. Forward-looking events may differ materially from those statements describe expectations, plans, expressed or implied by such forward- strategies, goals, future events or intentions. lookin
Slide 3: Growth supported by forex; volumes drop offset by pricing power
Growth supported by forex Volumes drop offset by pricing power Volumes drop offset by pricing power Innovation-driven growth more than offset by persistent substantial contraction of O&G and acetate tow market REBITDA Pricing power across all operating segments, supported by excellence programs
Slide 4: Q2 2015 financial highlights
Q2 2015 financial highlights € 2.7 bn +4.2% € 500 m +8.1% Net Sales yoy REBITDA yoy Strong forex impact (US$ in particular) Strong forex Volumes down as innovation-driven growth offset Positive pricing power, underpinned by excellence by adjustments in O&G and acetate tow markets programs, m
Slide 5: Portfolio reshaping and investments for value
Portfolio reshaping and investments for value Reducing cyclical & Strengthening low-growth businesses Growth Engines European Chlorovinyls Novecare INOVYN created Shift to on-pipe alkoxylation globally • Acquisition of facility in Moerdijk (NL) • INOVYN JV with INEOS effective as of July 1 • Start-u
Slide 6: Forex and excellence more than offset adjustments in O&G and acetate tow
Forex and excellence more than offset substantial adjust- ments in O&G supply chain and acetate tow market Net Sales REBITDA Pricing power € 57 m in € m in € m 89 (21) 235 (93) 55 (49) (6) 500 (33) 2,675 2 (33) Fixed Volume 463 costs Others 2,566 - (4)% Price (5)% (including (1)% Volume equity Scope
Slide 7: Net pricing & forex supportive across operating segments
Net pricing & forex supportive across operating segments REBITDA Q2 2015 (in € m) Advanced Substantial drop in New REBITDA record Advanced Formulations Novecare’s O&G on strong innovation- Materials market’s demand driven growth (12)% 18% 113 Sales and profit Good integration of 214 100 181
Slide 8: Advanced Formulations Q2 2015 performance
Advanced Formulations Q2 2015 performance Favorable forex insufficient to offset further volume decline in Novecare’s O&G Net sales (in € m) REBITDA (in € m) Novecare 97 (104) 725 (4) 16% (29) 686 70% margin 15% Scope Conversion Volume Price (1)% forex (14)% 113 13% (4)% 686 100 (5.4)% 16% (12)% 14%
Slide 9: Advanced Materials Q2 2015 performance
Advanced Materials Q2 2015 performance New REBITDA record on strong innovation-driven growth and favorable forex Net sales (in € m) REBITDA (in € m) Specialty Polymers 58 (1) 840 27% 79 57% margin 25% 670 33 Price Volume (0.1)% Conversion 9% Scope forex 840 214 5% 181 12% 28% 16% Silica 25% Special
Slide 10: Performance Chemicals Q2 2015 performance
Performance Chemicals Q2 2015 performance Solid pricing and favorable forex more than offset volume drop in Acetow Net sales (in € m) REBITDA (in € m) Soda Ash & 43 (45) 31 754 Derivatives 724 - 23% 25% 51% margin Scope Conversion Volume Price forex (6)% 4% 6% 754 169 185 14% 18% 17% 4.1% Peroxides
Slide 11: Functional Polymers Q2 2015 performance
Functional Polymers Q2 2015 performance REBITDA up on strengthened net pricing and supportive volume mix in Polyamide Net sales (in € m) REBITDA (in € m) Polyamide 11.4% 448 (29) 15 (4) (35) 395 97% margin Volume 8.1% Scope Conversion (7)% forex (1)% Price 3% (8)% 395 45 36 3% (12)% 23% Chlorovinyls
Slide 12: Corporate & Business Services Q2 2015 performance
Corporate & Business Services Q2 2015 performance Costs up yoy due to phasing and forex impact REBITDA (in € m) Q2 2015 Q2 2014 (37) (43) Energy Services 4 1 Other C&BS (47) (38) Reported (43) (37) Q2 2014 Q2 2015 Contribution from Energy Services up Other Corporate & Business Services • Better elec
Slide 13: Solvay's share in net income at €143 m
Solvay’s share in net income at € 143 m Adjusted* P&L Non-recurring costs in line with 2014 in € m Q2 2015 Q2 2014 • Restructuring expenses of € (10) m • Impairment charge of € (26) m for Special Chem non- Net sales 2,675 2,566 performing assets REBITDA 500 463 Other elements (7) 11 Net financial ch
Slide 14: Positive Free Cash Flow; net debt up with dividend payments
Positive Free Cash Flow Net debt up with dividend payments Free Cash Flow Net debt** evolution in € m in € m Q2 Q2 Free Cash Flow € 167 m (1,608) Delta (27) (19) (200) 2015 2014 (1,417) 311 Changes in (90) Other REBITDA* 311 337 (26) (215) 14 57 (22) changes net debt in net debt attributable Dividen
Slide 15: Capital investment efforts maintained
Capital investment efforts maintained Forex driving nominal amount up Capex sustained Continuing operations (861) high efforts* In 2015 in € m (734) Q4 (318) • 9 new facilities to start up (307) Q3 • > 50% growth capex (205) Q2 (151) (215) • ~70% of growth capex Q1 (147) (177) in Growth Engines * At
Slide 16: Working capital discipline maintained
Working capital discipline maintained Seasonal patterns Industrial working capital % of gross sales 16.3% 16.5% 15.6% 15.7% 15.2% IWC/sales 15.3% Average 2014 DSO* Overdues 12.8% Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 * Days Sales Outstanding Committed to further optimization Q2 2015 results 16 29/07/201
Slide 17: Debt management allows to reduce cost of net debt
Debt management allows to reduce cost of net debt Capital structure 31/03/2015 Capital structure 30/06/2015 in € bn in € bn Total equity 7.5 Total equity 7.3 Hybrid bond Hybrid 1.2 bond Gross debt 1.2 Gross debt (2.6) (2.7) Other Other Net debt (0.5) Net debt (1.3) (1.4) (1.6) Equity Equity 6.3 6.1
Slide 18: Outlook 2015
Outlook 2015 Solvay remains confident to generate solid REBITDA growth Despite expectation of continued uncertainties in various markets Q2 2015 results 18 29/07/2015
Slide 19: 2015 Priorities
Accelerate transformation • Continue portfolio upgrade 2015 • Grow with our customers Priorities • Maintain focus on excellence • Sustain profit & value growth Sustain momentum Q2 2015 results 19 29/07/2015
Slide 20: Investor relations contacts
Investor relations contacts Maria Alcón-Hidalgo Geoffroy Raskin Bisser Alexandrov +32 2 264 1984 +32 2 264 1540 +32 2 264 2124 maria.alconhidalgo@solvay.com geoffroy.raskin@solvay.com bisser.alexandrov@solvay.com Next events October 29, 2015 Q3 2015 results publication Q2 2015 results 20 29/07/2015
Slide 21: Annexes
Annexes • Additional Q2 & H1 2015 financial data • 2015 considerations • Group presentation • Segment & GBU presentation Q2 2015 results 21 29/07/2015
Slide 22: Forex and excellence more than offset adjustments in O&G and acetate tow markets
Forex and excellence more than offset adjustments in O&G and acetate tow markets Pricing power Net Sales REBITDA € 90 m in € m in € m 120 (29) 100 (77) 7 1,002 445 (135) (30) 5,322 Fixed Others (30) costs (including Volume Price 5,054 (13) (3)% 911 - (3)% equity (1)% earnings) Volume (8)% 1% Scope C
Slide 23: Income statement H1 and balance sheet
Income statement H1 Balance sheet in € m H1 2015 H1 2014 in € m 30/06/2015 31/12/2014 Net sales 5,322 5,054 Fixed assets 10,423 10,080 REBITDA 1,002 911 Investment & shares 565 545 Other elements (11) (5) Loans & other non current 32 (10) financial receivables / payables Depreciation & Amortization
Slide 24: Lower discontinued operations contribution to FCF
Lower discontinued operations contribution to FCF Seasonal uplift in net debt Free Cash Flow Net debt** evolution in € m in € m (311) 25 14 (1,608) H1 H1 Delta Other Changes in 2015 2014 changes Free Cash Flow € (177) m (117) net debt in net debt attributable REBITDA* 578 586 (9) (264) (3)% to "Asse
Slide 25: Cash flow statement
Cash flow statement in € m Q2 2015 Q2 2014 in € m H1 2015 H1 2014 Cash flow from operating Cash flow from operating 410 293 326 390 activities activities Cash flow from investing Cash flow from investing (267) (289) (781) (511) activities activities Cash flow from financing Cash flow from financing
Slide 26: Factors impacting Net income
Factors impacting Net income in € m Q2 2015 Q2 2014 in € m H1 2015 H1 2014 IFRS Net income, Group 125 (313) IFRS Net income, Group 265 (225) Rhodia PPA (after tax) 18 21 Rhodia PPA (after tax) 36 40 Non-recurring items 46 46 Non-recurring items 64 76 M&A-related elements 14 10 M&A-related elements 2
Slide 27: Pension liabilities down as discount rates increased
Pension liabilities down as discount rates increased Cash contribution stable at € (42) m in Q2 2015 Pensions (30/06/2015) • € (78) m in H1 2015 in € bn Net pension • € (180) m in 2014 liabilities Pension (2.9) liabilities (5.2) Discount rates* increased in Q2 2015 Pension assets Average 2.3 Currenc
Slide 28: Annexes
Annexes • Additional Q2 & H1 2015 financial data • 2015 considerations • Group presentation • Segment & GBU presentation Q2 2015 results 28 29/07/2015
Slide 29: REBIT(DA) considerations for 2015
REBIT(DA) considerations for 2015 Forex impact REBITDA adjustments Mainly linked to USD RusVinyl JV Immediate impact on conversion exposure Consolidated through equity associates Adjusted for financial charges Deferred transactional impact due to hedging Volatility linked to €-denomina
Slide 30: Significant forex tailwind expected at prevailing rates
Significant forex tailwind expected at prevailing rates Forex exposure Exposure to USD • Conversion: • Sensitivity of ~ € 100 m REBITDA impact No cash effect / no coverage provided per (0.10) USD/€ change • Transactional: • Half conversion, half transactional Typical coverage on a 6-12 month rolling
Slide 31: Financials and tax considerations for 2015
Financials and tax considerations for 2015 Net debt charges Hybrid bond Retail bond redeemed at maturity Nominal value of € 1.2 bn € (500) m paid in June 2015 Initial average dividend yield of 4.7% Net financial charges expected at ~€ (125) m € 0.7 bn at 4.199% Average cost of borrowin
Slide 32: Other considerations for 2015
Other considerations for 2015 Non-recurring elements Cash flow Restructuring costs FCF fluctuations Cash expenses for pensions of ~€ (180) m Impairments relative to business not under discontinued operations Sustained high level of capex efforts, at constant forex HSE provisions on non-o
Slide 33: Annexes
Annexes • Additional Q2 2015 financial data • 2015 considerations • Group presentation • Segment & GBU presentation Q2 2015 results 33 29/07/2015
Slide 34: Solvay, a major global chemical player
Solvay, a major global chemical player Based on strengths € 10.2 bn 119 Net Sales Industrial sites Well-balanced geographical spread and end-user markets € 1.8 bn 15 REBITDA Major R&I centers Leading player in 90% of our businesses 17.5% 26,033 REBITDA margin Employees (FTEs) Strong R&I portfolio €
Slide 35: Well-balanced geographical spread and end-user markets
Well-balanced geographical spread and end-user markets Balanced Exposure to geographical exposure* higher growth end-markets* Automotive & North Aeronautics Consumer goods America Europe & Healthcare 18% 23% 34% 26% Energy & Environment Industrial 10% applications Agro, 16% Feed & Food Latin Asia/Pa
Slide 36: Transforming the present
Transforming the present Group profile Growth Resilience Returns Transforming the present, sustaining the future 36 June 2015
Slide 37: With distinct strategic intent for our businesses
With distinct strategic intent for our businesses Advanced Performance Materials Chemicals HARVEST; SELECTIVELY INVEST & DIVEST INNOVATE & INVEST BREAK- Advanced THROUGH Formulations PROFITABILITY IMPROVEMENT Functional INITIATIVES Polymers Transforming the present, sustaining the future 37 June 201
Slide 38: Ability to extract value
Upgrading portfolio Divestments Strategic Portfolio Monetizing Divestitures refocussing for value Ability to extract value Special Chem Chlorvinyls LifeScience Europe & Eco Services Latam Refrigerants 2014 PCC 2011 Re-investments for value creation ADVANCED ADVANCED MATERIALS FORMULATIONS Ryton Chem
Slide 39: Our main thrusts
Innovating effectively Our main thrusts RESPONSIBILITY OPEN INNOVATION EFFECTIVENESS SPM methodology to Large Ecosystem Customer assessing & prioritize for faster & wider focus projects progress • Sustainable solutions • Partnership with key clients • 82% of Group’s R&I managed by the • Products wit
Slide 40: Delivering strongly
Delivering strongly Excellence scope expanded Management Model Performance Sustainable value oriented Entrepreneurial Collaborative Customer innovation Empowerment focus € 800 m Accountability vs € 670m initially foreseen Excellence Excellence underpinned by management model Transforming the present
Slide 41: Deliver more for society
Sustaining the future Deliver more for society Innovate sustainable solutions Renewable materials Clean mobility Eco-efficient processes Clean water and air Food security Sustainable energy Circular chemistry Smart chemistry … Act responsibly Operating responsibly Empowering people Priority targets
Slide 42: Responding to megatrends
Responding to megatrends Resource constraints & Evolving demography Innovation increased sustainability & consumers acceleration demand behaviors Growing Fight for talents world population Digitalization & mobility Ecosystem at risk Urbanization Miniaturization Competition for space, lands Aging soc
Slide 43: Creating sustainable value: mid-term targets
Creating sustainable value Mid-term targets 2014 On Divestments, including track European PVC Expanding Excellence > 10% yoy REBITDA growth initiatives 11% 2016 REBITDA € 2.3 - 2.5 bn* growth Disciplined reinvestments in growth engines CFROI to increase by Robust financial +40bp framework
Slide 44: With value creation momentum across segments
With value creation momentum across segments 2012 2014 2016 WACC Premium return* WACC Premium return* WACC Premium return* 30% REBITDA margin 25% 20% 15% 10% Value Value Value 5% creation creation creation zone zone zone 0% 0% 5% 10% 15% 0% 5% 10% 15% 0% 5% 10% 15% CFROI * Premium return = WACC + 10
Slide 45: Underpinning growth momentum through investments
Underpinning growth momentum though investments 861 785 708 Capex* Capex discipline in € m maintained 2012 2013 2014 2015 2016 Growth capex • Strategic fit • IRR ≥ 15% Capex* 48% ratios 43% Maintenance 38% Capex / capex at REBITDA ~€ 400 m Solvay Peers** range Peers** median Capex intensit
Slide 46: Allocating capex strategically
Allocating capex strategically Growth capex 2015-2018 Portfolio Regional Solvay’s business matrix of GBUs, based on value generation potential Based on main projects GROWTH ENGINES High investment 60% level in value enhancers Solvay’s ability to extract value Americas Europe CHALLENGE RESILIENT Sele
Slide 47: With current pipeline starting to deliver in 2016
With current pipeline starting to deliver in 2016 Major Industrial Years to Projected Total growth projects start-up maturity IRR* capex ≤3 GROWTH ENGINES Novecare Alkoxylation USA & Singapore 2015 >20% ≤3 € 500 m Aroma Performance Vanillin Asia 2015 >20% Specialty Polymers Polymers China 2015 ≥6 ~1
Slide 48: Supporting growth through strong financial framework
Supporting growth through strong financial framework Capital structure (31/03/2015) Strong liquidity position maintained in € bn in € bn Total equity 7.5 (4.2) Lower (3.8) Gross debt Hybrid cost of carry (2.7) bond 1.2 Unused credit facilities Other Net debt (0.9) Cash & cash equivalents (1.4) Equit
Slide 49: Converting REBITDA into cash for value
Converting REBITDA into cash for value REBITDA > 10% yoy on average Working capital ≤ 15% / sales Intensity Capex reduces after 2015 Pensions, environmental, Other cash flow items restructuring, … ~ € 300 m net Income tax Low to mid 30%’s % charges Financing costs to continue to fall Stable Divide
Slide 50: Rewarding shareholders with stable to growing dividend
Rewarding shareholders with stable to growing dividend Gross dividend Total shareholder return 4 200% in €/share Indexed (with re-invested net dividends) 3 150% Dividend TSR* 2 100% 5.3 % CAGR 17 % CAGR 1 50% 07/09/2011 Rhodia acquisition 0 0% 1982 1987 1992 1997 2002 2007 2012 2012 2013 2014 2015 F
Slide 51: Remuneration aligned to value creation
Remuneration aligned to value creation REBITDA* 35% CFROI* VARIABLE Share-price REBITDA 30% Cash Sustainability FIXED 35% Applicable to Executive Committee (*) Targets and KPIs aligned & Business General Managers to 2016 ambitions Transforming the present, sustaining the future 51 10/06/2015 June 20
Slide 52: Annexes
Annexes • Additional Q2 2015 financial data • 2015 considerations • Group presentation • Segment & GBU presentation Q2 2015 results 52 29/07/2015
Slide 53: Organized in operating segments and Global Business Units
Organized in Operating segments and Global Business Units Functional Polymers Advanced Formulations Performance Chemicals Advanced Materials Corporate & Business Services Novecare Specialty Soda Ash & Polyamide Solvay Energy Polymers Derivatives Services P&I Engineering Aroma Silica Peroxide Plastic
Slide 54: Advanced Formulations
Advanced Formulations 2014 figures € 2,854 m € 426 m 15% Net Sales REBITDA Margin Aroma Novecare Coatis Performance As one of Solvay’s growth engines, the businesses 71% grouped under Advanced Formulations stand out for Novecare their innovation capacity and relatively low capital Net sales Coatis i
Slide 55: Novecare
Novecare Delivering sustainable solutions for surface chemistry North America Europe 12 production sites 7 production sites Focused on 12 R&I & tech centers 4 R&I & tech centers key markets Home & Personal care 20% 53% Net 16% sales 2014 25% 6% Latin America Asia & RoW 3 production sites 9 productio
Slide 56: Novecare: customer intimacy with tailor-made solutions
Novecare Customer intimacy with tailor-made solutions Delivering Developing Tailor-made Strategic value proposition products formulations solutions Develop innovation model with core customers HPC Leading position in niche markets through formulations & broad portfolio INDUSTRIAL Leading provider in
Slide 57: Novecare: broad portfolio of innovation projects
Novecare Broad portfolio of innovation projects across markets and aligned to megatrends Time to Large size market projects Evolving demography & consumers Mid-size behaviours projects Small size 13% of our portfolio projects Innovation acceleration 40% of our portfolio Time to market Resource const
Slide 58: Novecare: investing for competitiveness and regional growth
Novecare Investing for competitiveness and regional growth coming on stream in 2016 Expansion in Germany to access Eastern Europe New plant, construction 2012-2014 Genthin, Germany Ethylene oxide on pipe in US, Europe and Asia New plant, construction 2013-2015 Singapore New plant, construction
Slide 59: Novecare: successful strategy delivery across markets
Novecare Successful strategy delivery across markets underpinning growth levers Markets Strategic levers Growth trend evolution % of Tailor-made Inno- Competi- net sales solutions vation tiveness 2010-2014 2014-2016 HPC 20% high 1-digit 2-digit INDUSTRIAL 20% high 1-digit high 1-digit COATINGS
Slide 60: Coatis
Coatis Sustainable solvents solutions provider and leading Latin American player of phenol Multiple applications for phenol and oxygenated solvents 8% 10% 3% Net Sales 2014 79% Latin America Asia & RoW 1 production site 1 R&I center 1 R&I center € 0.5 bn ~ 600 1 production site Net sales 2014 employ
Slide 61: Aroma Performance
Aroma Performance World’s largest Diphenols & Fluoroaliphatics integrated producer serving customers growth and innovation North America Europe 1 production site 3 production sites 1 R&I center Vanillin ingredients for Food, Flavors & Fragrances 38% 16% Net Sales 4% 2014 42% Asia & RoW 1 production
Slide 62: Advanced Materials
Advanced Materials 2014 figures € 2,762 m € 709 m 26% Net Sales REBITDA Margin Specialty Polymers Silica Special Chem A leader in markets with high entry barriers and strong 54% returns on investment, the Advanced Materials segment Specialty Polymers is a major contributor to the Group’s performance
Slide 63: Solvay Specialty Polymers
Solvay Specialty Polymers Inventing the future every day Diversified end markets with superior growth North America Europe potential 8 production sites 7 production sites 2 R&I centers 4 R&I centers Healthcare Consumer 35% Net Advanced Sales Trans- Industrial 26% 2014 portation 36% 3% Construc- Auto
Slide 64: Specialty Polymers: unique solution offering
Specialty Polymers Unique solution offering, differentiating Solvay from competition High-barrier X-linkable Aromatics Aromatics Fluoropolymers Fluoropolymers polymers compounds LCP HPPA PPS PEEK PAI PSU PTFE PVDF PFA FKM PFPE PVDC XLCP … further strengthened through innovation and acquisitions … fu
Slide 65: Specialty Polymers: outgrowing markets
Specialty Polymers Outgrowing markets Solvay Specialty Polymers 2014 sales by end markets Water Industrial Energy Electrical/Electronics Automotive Addressable 3 Consumer market growth Healthcare ~ 8% p.a.* Construction Advanced Transportation Smart devices Sales CAGR 2013/15 ~ 15% * CAGR 2013-2015
Slide 66: Specialty Polymers: powerful innovation levers
Specialty Polymers Powerful innovation levers across the value chain 2014 data Precursors Monomers Polymers Alloys Downstream 32% of net sales realized with products < 5-y 50+ New product grades 3,300+ Patents in force Transforming the present, sustaining the future 66 June 2015
Slide 67: Silica
Silica Growth through innovation for sustainable mobility HDS (Highly Dispersible Silica) North America Europe for fuel-efficient & 1 production site 3 production sites (1 in construction) performance tires 2 R&I centers 41% Net Sales 28% 2014 31% Latin America Asia & RoW 2 production sites 3 produc
Slide 68: Highly Dispersible Silica delivers value to the tire industry
Silica Highly Dispersible Silica (HDS) delivers value to the tire industry Excellent technical performance … … growing across a number of applications Rolling Resistance In passenger car and light trucks 125 + 25% 120 • Energy-efficient tires 110 • Winter tires 100 with HDS • Sport tires 90 Carbon-B
Slide 69: Special Chem
Special Chem, Innovative solutions for growth industries Formulations North America Europe 3 production sites 14 production sites 2 R&I center 4 R&I centers Fluor Rare earths & other metals 39% Net sales 26% 2014 31% 3% Latin America Asia & RoW 2 production sites 8 production sites Automotive Electr
Slide 70: Special Chem: creation of new GBU
Special Chem Creation of new GBU, enhancing scale, innovation and growth options Special Aroma* Chemicals Performance Special Chem Fluor Fluor chemicals chemicals Fluor Rare earth Sr/Ba Key technologies chemicals chemicals chemicals Sr/Ba Rare Earth chemicals Systems Electronics Key end markets Auto
Slide 71: Performance Chemicals
Performance Chemicals 2014 figures € 2,944 m € 724 m 25% Net Sales REBITDA Margin Soda Ash & Emerging Derivatives Peroxides Acetow Biochemicals Operating in mature resilient markets, this Segment’s 47% Soda Ash success is based on economies of scale, Peroxides competitiveness and quality of service.
Slide 72: Soda Ash & Derivatives
Soda Ash & Derivatives Resilient cash generator for Solvay North America Europe 2 production sites 7 production sites Soda ash 3 R&I centers in many applications Flat glass 45% Net sales 24% 2014 19% Container glass 12% Asia & RoW 1 production site (in construction) Detergents € 1.4 bn ~ 3,500 10 pr
Slide 73: Soda Ash & Derivatives: Solvay products
Soda Ash & Derivatives Solvay products Leading player with very competitive supply approximate main end-market exposures Raw materials Products Applications End-markets Synthetic process ~20% Additives in chemical and Industrial applications metallurgical applications Limestone ~20% Flux in glass (f
Slide 74: Soda Ash & Derivatives: market leader with world-class assets
Soda Ash & Derivatives Market leader with “world-class” assets Solvay assets 66% “World-class” assets addressing regional and export markets Solvay has 36% Rheinberg Bernburg Green River (Wyoming, US) of European • Green River (US, Wyoming) Devnya Green River Dombasle capacity • Natural soda ash pro
Slide 75: Cost competitiveness, key success factor in soda ash
Soda Ash & Derivatives Cost competitiveness, key success factor in the soda ash industry Average FOB Natural process (NP) Synthetic process cash cost Freight & logistics Solvay Solvay costs “World-class” “Local” assets assets Production Costs Turkey ((NP) Africa (NP) China (NP) EU 1st CIS North
Slide 76: Market maker in Bicarbonate, a diversified growth story
Soda Ash & Derivatives Market maker in Bicarbonate, a diversified growth story Global Bicarbonate demand Total market volumes (2014) Solvay positioning Unparalleled security of supply Others 14% 20% Food 8 facilities in Europe and North America Healthcare 13% New 100 kt/yr plant in Thailand (0
Slide 77: Peroxides
Peroxides Global market & technology leader North Europe Peroxides Pulp America 9 production sites (1 HPPO*) 2 production sites in diversified markets 2 R&I centers 41% HPPO* 13% CAPACITY Homecare 13% 33% Latin Asia & RoW America 5 production site 1 production site (2 HPPO) Food & aquaculture 1 R&I
Slide 78: Peroxides: Solvay market and technology leader
Peroxides Solvay market and technology leader Global market leader Technology leader • On-purpose on-site technologies • High productivity process for H2O2: mega plants to serve PO customers > 70 % market share • Reviewed H2O2 production process to allow for tailor made customer solutions • Process
Slide 79: Peroxides: HPPO, a game changer
Peroxides HPPO*, a game changer generating strong growth & guaranteed returns HPPO HPPO: plants the preferred route to PO Solvay HPPO >70% of Long term contracts worldwide with the 2 WW On-purpose route capacity leaders (BASF, DOW) in PO/PU chain Low capital Solvay JV with intensity & Dow & BASF env
Slide 80: Acetow
Acetow Leading the market with quality and innovation Products North America Europe 1 production J/V 2 production sites 1 R&I center 35% 1% Net 12% Sales 2014 Cellulose acetate flakes Cellulose acetate tow 52% Applications Latin America Asia & RoW 1 production site 1 production site New applications
Slide 81: Emerging Biochemicals
Emerging Biochemicals Leader in bio- based epichlorohydrine, vinyls and caustic soda in South East Asia Vinyl applications Europe 1 R&I center Films Sheets Net Sales 2014 100% Asia & RoW Pipe & fittings Wires & cables Profiles 1 production site Epicerol® applications € 0.4 bn ~ 500 1 production site
Slide 82: Functional Polymers
Functional Polymers 2014 figures € 1,654 m € 111 m 6.7% Polyamide Chlorovinyls Net Sales REBITDA Margin Polyamide & Intermediates Fibras Engineering Plastics PVC Compounds The key success factor of this Segment, which primarily 93% groups the Polyamide activities, is continuous Polyamide manufacturi
Slide 83: Polyamide
Polyamide Integrated polyamide player 3 business units Europe 7 production sites 2 R&I centers 48% Net Polyamide & Intermediates 4% Sales 2014 15% 33% Latin America Asia & RoW 4 production sites 3 production sites 3 R&I centers 4 R&I centers Fibras € 1.5 bn ~ 3,600 14 production sites Engineering Pl
Slide 84: Corporate & Business Services
Corporate & Business Services 2014 figures € (188) m REBITDA Other Corporate Energy Services & Business Services This Segment includes the Solvay Energy Services business which delivers energy optimization programs both within the Group as well as for third parties. It also includes the corporate fu
Slide 85: Targeting Sustainable Value Growth
Executing a clear value creation strategy Towards a higher growth, less cyclical & greater returns Chemical Group Targeting Sustainable Value Growth Q2 2015 results 85 29/07/2015
Slide 86: Feedback expected by end March 2015
THE FIRST ROUND-THE-WORLD www.solvay.com SOLAR FLIGHT MARCH 9 2015 Feedback expected by end March 2015