Solvay Sa · EURONEXT:SOLB
Solvay Sa — Q2 2021 Earnings Presentation
14 slides from Solvay Sa's earnings presentation, Jul 29, 2021
Slide 1: Second Quarter 2021 Results
Our SolvaLite™ composites are up to 40% lighter than metal, allowing manufacturers to create more energy-efficient vehicles that contribute to reducing CO2 emissions. Second Quarter 2021 Results July 29, 2021
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: Health and safety remain our top priority
Health and safety remain our top priority Measures in place Likely cases quarantine ● Safety measures for all our employees ● 10,000 employees working remotely Confirmed cases ● Business travel banned, except for critical customer needs Vaccination campaigns Solvay Solidarity Fund ● India and Italy (
Slide 4: Recovery back to 2019 levels for >90% of Solvay's markets
Recovery back to 2019 levels for >90% of Solvay’s markets Resilient through 2020 (30%) On track back to 2019 levels (~60%) Slower recovery (<10%) All % references full year 2020 figures Sources: Market recovery expectations derived from Oxford Economics (except Automotive - LMC production volume) and
Slide 5: Q2 2021 Performance
Q2 2021 Performance Strong rebound with double-digit sales and EBITDA growth Net sales Underlying Free cash flow continuing operations EBITDA € 2.4 bn € 602 m € 135 m +20% organic yoy; +47% organic yoy; seasonal payments back to 2019 levels in 24.5% EBITDA margin most markets Q2 2021 EBITDA exceeded
Slide 6: Reinvesting in the rebound
Battery Specialty H202 for platform Polymers for electronics Automotive Reinvesting in the rebound Second Quarter 2021 Earnings
Slide 7: Market segment & region annual figures
Market segment & region annual figures Region (% 2020 Net Sales) Group Materials Chemicals Solutions Europe 29% 30% 36% 22% North America 28% 34% 18% 31% Latin America 11% 2% 21% 9% Asia and rest of the world 32% 34% 25% 38% End markets (% 2020 Net Sales) Group Materials Chemicals Solutions Automotiv
Slide 8: Materials
Materials Q2 2021 performance NET SALES EBITDA EBITDA y/y organic y/y organic margin Highlights + + 12 % 35 % 31 % • Double-digit volume growth driven by continued strong demand in automotive, electronics and consumer goods • 82% growth in batteries for hybrid and electric vehicles Net sales vs Q1’2
Slide 9: Chemicals
Chemicals Q2 2021 performance NET SALES EBITDA EBITDA y/y organic y/y organic margin Highlights + + 31 % 58 % 30 % • Growth driven by significant higher volumes across each business • Record sales of Bicar and continued recovery in flat glass serving building and automotive markets Net sales vs Q1’21
Slide 10: Solutions
Solutions Q2 2021 performance NET SALES EBITDA EBITDA y/y organic y/y organic margin Highlights + + 19 % 42 % 19 % • Higher volumes driven by strong demand across many markets including automotive and electronics • Higher production levels, new mine wins and supportive copper prices Net sales vs Q1’
Slide 11: Cost reduction momentum… continues
Cost reduction momentum… continues Realized in Q2 2021 Total costs savings to date Permanent structural levers € 51m € ● ● Restructuring €22 m Indirect costs reductions €24 m 306 m ● Productivity efficiencies €5 m Costs savings by 2024 € Realized in H1 2021 500 m On track to deliver ~€200 m € 131m st
Slide 12: Sustained cash generation
Sustained cash generation 25% increase excluding scope and one-time benefit in 2020 Taxes one-offs Scope & EBITDA Δ Capex Working Additional Pensions & Others H1 2020 forex capital restructuring interests H1 2020 +25% FCF H1 2020 FCF H1 2020 before FCF H1 2021 one-offs, scope & forex NET DEBT Main dr
Slide 13: 2021 outlook
2021 outlook Structural EBITDA Free cash flow in a range between continuing operations cost savings € € 200 m 2.2 - €2.3 bn € 750 m up from €2.0 to €2.2 bn up from €650 m Barring additional deterioration related to another wave of Covid-19 in the second half Includes €200-250m of expected raw materia
Slide 14: Q&A
O&A S SOLVAY Progress beyond Y¥fno wl % solvay.com