Slide 1: Peroxides Webinar
Peroxides Webinar October 4, 2022
Slide 2: With you today
With Ilham Kadri you today CEO and President of the Executive Leadership Team of Solvay Peter Browning President, Peroxides business Peroxides Webinar
Slide 3: Solvay webinar events to continue
Solvay webinar events to continue ESG / Carbon Soda Ash Peroxides Capital Neutrality Plan performance October 2022 Markets Day December 1 update H1 February 23 2021 2022 2023 Auto / Consumer Aero & Defense TBD EV Batteries market February 2 June 15 TBD Q1 2023 page 3 Peroxides Webinar
Slide 4: Essential chemicals company with strong cost and cash leadership
Essential chemicals company with strong cost and cash leadership enabling further growth Soda Ash & Derivatives EssentialCo Investments Peroxides support the future company’s €4.1bn Silica growth and sustainability 2021 Net sales Coatis ambitions Special Chem page 4 Peroxides Webinar 4
Slide 5: Peroxides business key takeaways
Peroxides business key takeaways Track record of strong, resilient cash Indisputable leader in High exposure to most generation & cost, scale & attractive market conversion technology segments page 5 Peroxides Webinar
Slide 6: H2O2 can be fully sustainable across its lifecycle
H2O2 can be fully sustainable across its lifecycle and is extensively used in day-to-day life Energy O2 Unique Green raw materials Energy H2 working fluid H2O2 Powerful bleaching Aseptic packaging Circular production process reuses working fluids and catalysts Production Solvay’s process has the poten
Slide 7: Presenter
Presenter Peter Browning President, Peroxides business Peroxides Webinar
Slide 8: ~€1bn H2O2 business with strong financial fundamentals
~€1bn H2O2 business with strong financial fundamentals Solvay sales in 2022E ~40% ~20% ~10% ~30% Chemical Industry Others incl. Hydrogen Peroxide for Propylene Oxide Pulp & Paper Electronics incl. bleaching of Textile, disinfectants for (HPPO) and other chemicals Food, Water & Aquaculture and others
Slide 9: Track record of strong & resilient cash generation
Track record of strong & resilient cash generation Ambition to grow our EBITDA by 30-40% over the next 5 years Key drivers of while maintaining cash conversion of 80%+ EBITDA growth Peroxides EBITDA delivery 4.0 (indexed to 2013) 3.5 +30-40% Cost, scale vs. and 3.0 2022 technology leadership 2.5 ~3x
Slide 10: Solvay is the H2O2 global market leader
Solvay is the H2O2 global market leader North America EMEA #2 position Global #1 position #1 position in in a relatively stable a slightly growing market market Semicon investments Semicon investments NAM ~10% support growth support growth LATAM ~15% Capacity Capacity APAC ~30% South America APAC ~1
Slide 11: Highly competitive assets
Highly competitive assets Highly cost competitive on North America EMEA the back of proprietary technology Proprietary working fluid Continue to invest Further streamline business & continue to produced in-house to maintain leadership position invest to maintain leadership position South America APAC
Slide 12: Cost competitiveness through proprietary working fluid and continuous improvement
Cost competitiveness through proprietary working fluid and continuous improvement Solvay is world’s largest Outperforming other Proprietary producer of anthraquinone with working fluids: working best-in-class properties: fluid Lower opex & capex • Highest solubility Higher productivity • Highest stabil
Slide 13: World-class mega-plants and tailored assets
World-class mega-plants and tailored assets to meet various industry and customer needs Unique technology with a wide range of plant sizes Mega Ultra-high Commercial purity H2O2 plants plants (ICC) plants Capacity range 5-25 30-100+ >200 kt/year kt/year kt/year Dedicated semiconductor-grade purificat
Slide 14: Accelerating towards carbon neutrality
Strong environmental Accelerating towards carbon neutrality achievements and commitments Clearly defined measures to cut emissions by more than one third by 2026 -11% achieved* Energy consumption Incremental improvements reduction across plants Green electricity Power purchased from % -35 (on-site or
Slide 15: We have leadership positions in the two highest growth segments
We have leadership positions in the two highest growth segments Market acceleration driven by ICC and electronics Solvay with leadership positions in both segments H2O2 market size by end-market (in €bn) CAGR ‘16 - ‘22 ‘22 - ‘26 Electronics semicon, PV, display ~5.1 ~3.0% ~3.5% • One of three global
Slide 16: Electronics | Semicon miniaturization driving demand for high purity H2O2
Electronics | Semicon miniaturization driving demand for high purity, electronic grade H2O2 Semicon fabrication process Electrical circuit Silica sliced into etched onto wafers wafer Single-crystal silicon ingot Hydrogen peroxide used for large-batch Only pristine wafers with no defects or foreign m
Slide 17: Electronics | Increasing usage drives higher growth
Electronics | Increasing usage drives higher growth Increasing usage drives higher growth More H2O2 needed per chip 2016 – 2022 2022 – 2026 (sales CAGR) (sales CAGR) Chips become increasingly small driven by more ∼25% sophisticated needs ∼4% Making a chip smaller requires ∽2% more etching steps ∼5%
Slide 18: Electronics | Leading position to be strengthened by further capex
Electronics | Leading position to be strengthened by further capex investments and continued business development Solvay leadership position • Only player vertically integrated in every region Deer Park, TX, USA resulting in unparalleled reliability, quality & purity eH2O2 Zhenjiang, China Quzhou, C
Slide 19: ICC | Leader with three world-class HPPO megaplants
ICC | Leader with three world-class HPPO megaplants ICC Lower capex Lower opex Lower CO2 emissions Benefits * * * Belgium Thailand Saudi Arabia Solvay Plants leverage ~65% global capacity leadership proprietary 230kt* share in HPPO (2022) 330kt* 300kt* position Solvay H2O2 technology 2008 2010 2014 C
Slide 20: New markets create growth opportunities
New markets create growth opportunities Solvay offering Battery recycling Urban mining H2O2 supply Recycled materials Nickel Manganese Cobalt Gold Silver Copper (not exhaustive) Negotiating supply agreements Partnering with industry Initial Solvay Technical support with the largest battery leaders t
Slide 21: Peroxides business key takeaways
Peroxides business key takeaways Track record of strong, resilient cash Indisputable leader in High exposure to most generation & cost, scale & attractive market conversion technology segments • ~12% p.a. EBITDA growth • 90%+ of Solvay H2O2 • Significant market share in since 2013 capacity fall withi
Slide 22: Q&A session
Ilham Kadri Q&A session CEO and President of the Executive Leadership Team of Solvay Peter Browning President, Peroxides business Peroxides Webinar
Slide 23: Safe harbor
Safe harbor 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
Slide 24: solvay.com
S SOLVAY Progress beyond solvay.com