Slide 1: Second quarter 2024 results
Philippe Kehren CEO Lanny Duvall COO Alexandre Blum Second quarter 2024 results CFO Earnings call July 31st, 2024 1
Slide 2: Forenote
Forenote This presentation may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties relating to
Slide 3: Introduction
Introduction Philippe Kehren 3
Slide 4: Safety at the heart of our operations
Safety at the heart of our operations RIIR (Reportable Injuries and Illness per 200,000 work hours) 0.27 0.27 0.27 0.24 (47) (45) 4 4 3 3 2 3 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 H-RIIR RIIR 4
Slide 5: Q2 2024 results
Q2 2024 results Continued sequential improvement of EBITDA and Margin driving solid FCF € € € € 1.2bn 272m 120m 1.6bn 17.6% Underlying Underlying Net Sales EBITDA FCF1 Net Debt ROCE2 -7% organic -17% organic 1.5x leverage2 last 12 months 22.8% EBITDA margin 1. To Solvay shareholders from continuing
Slide 6: Transformation
Transformation Lanny Duvall 6
Slide 7: Solvay Transformation - Simplification and digitalization
Solvay Transformation - Simplification and digitalization Deliver & Accelerate Star Operations Organization SG&A/Functions Processes ➝ Star Factory ➝ Cost efficient ➝ Function target ➝ Global business ➝ Star Supply Chain organizations operating model process management ➝ Operational excellence ➝ Optimi
Slide 8: €300m by 2028 structural cost savings
€300m by 2028 Structural cost savings Rapid ramp up in first years 50% in first 2 years ERP POST TSA 25% SG&A Fit for purpose organization New ERP INDUSTRIAL FOCUS 35% Plant Fixed Costs Operational excellence Footprint optimization 80m 40% Operational efficiency Logistics & procurement Process innovatio
Slide 9: Real life examples
Real life examples Condition Based Monitoring Turbine Optimization SG&A ➝ Predictive Maintenance ➝ Optimization of Energy ➝ Legal entities simplification ➝ 800 IoT in use across plants Production ➝ 2,000 by the end of 2024 and ➝ Implemented Advanced Process ➝ Facilities footprint >5,000 by end of 202
Slide 10: Structural cost savings in H1'24
Structural cost savings in H1’24 TARGETS €300m by 2028 €80m by 2024 € € € € 24m + 12m + 10m = 46m DELIVERED Operational Plant Fixed SG&A H1’24 efficiency Costs Gross savings (before inflation) measured as year on year EBITDA impact 10
Slide 11: Financials
Financials Alexandre Blum 11
Slide 12: Q2 Sales bridge
€1,194m in Q2 2024 VS Q2 Sales bridge Positive volume for 2nd quarter in a row €1,274m in Q2 2023 €56m volumes up Scope Forex conversion Volume & mix Price reflecting a slight demand uptick for the 2nd quarter in a row -7% -6% Lower pricing Q2 2023 Q2 2023 Q2 2024 Sales Sales Sales (constant scope mo
Slide 13: Q2 EBITDA bridge
€272m in Q2 2024 Q2 EBITDA bridge VS €357m in Q2 2023 MARGIN -5.2pp MARGIN 28.0% 22.8% Slight volume growth & positive product mix Scope Forex Volume conversion & mix Net Fixed Other Lower net pricing pricing costs from soda ash, as expected very resilient in other businesses -17% Lower fixed costs -
Slide 14: Basic Chemicals results
Basic Chemicals results Q2 2024 (€m) % YoY % YoY organic Soda Ash & Deriv. 468 -10% -11% Peroxides 240 +29% +5% Net Sales 708 +1% -6% EBITDA 194 -26% -27% EBITDA Margin 27.3% Q2 Highlights ➝ Soda Ash & Derivatives : Higher volumes on Soda Ash (seaborne offsetting lower demand in EU container glass)
Slide 15: Performance Chemicals results
Performance Chemicals results Q2 2024 (€m) % YoY % YoY organic Silica 141 -8% -8% Coatis 167 -8% -5% Special Chem 175 -24% -9% Net Sales 483 -14% -7% EBITDA 101 -8% +11% EBITDA Margin 21.0% Q2 Highlights ➝ Silica : Higher volumes in tire and consumer & industrial goods markets. Lower prices with ind
Slide 16: EBITDA recovering
EBITDA recovering €247m in Q4 2023* EBITDA up 10% since Q4’23 Ebitda Margin up by 2p.p. since Q4’23 VS €265m in Q1 2024 €272m in Q2 2024 +3% +10% With volume stabilization and cost discipline +2pp * new base as published in April 2024 Margin recovery 21% in Q4 2023 22% in Q1 2024 23% in Q2 2024 Refle
Slide 17: Solid FCF generation: €246m YTD
€120m in Q2 2024 Solid FCF generation : €246m YTD VS Supported by resilient EBITDA, prudent Capex and Working capital €126m in Q1 2024 538 Resilient EBITDA Performance +3% sequentially Capex Working capital 246 Provisions Financing Taxes and other Prudent Capex EBITDA H1 2024 FCF H1 2024 Disciplined
Slide 18: Capital structure
Capital structure Adequate debt level S&P RATING: BBB- Stable outlook 1,568 1,489 Net debt: €1.6 Bn 1 M&A Others Net pension liabilities: €0.7 Bn Environmental liabilities: €0.5 Bn FCF Dividends Leverage ratio: 1.5x Net Debt Net Debt 31 Dec 23 30 Jun 24 18 1. Remeasurements, change in scope and sepa
Slide 19: Outlook
Outlook Philippe Kehren 19
Slide 20: Outlook
Outlook Expectations for 2024 Underlying EBITDA organic growth ranging between -10% to -15% compared to 2023 restated (previously -10% to -20%) Free Cash Flow1 higher than €300 million (previously higher than €260 million) 20 1 Free Cash Flow to Solvay shareholders from continuing operations
Slide 21: Q&A
21 &A Q&A
Slide 22: Visit solvay.com
Visit solvay.com Contact media relations Contact investor relations 22