Slide 1: Solvay's 2020 Full Year Results
Solvay's 2020 Full Year Results Media presentation February 24, 2021
Slide 2: With you today
With you today Ilham Kadri Karim Hajjar CEO CFO page 2 Full year 2020 earnings
Slide 3: Safety
SAFETY page 3 Full year 2020 earnings
Slide 4: Health and safety is our top priority
Health and safety is our top priority Confirmed COVID-19 cases REPORTABLE INJURIES AND ILLNESSES RATE 2018: 0.54 2019: 0.44 2020: 0.40 -26% Source: Daily CM Digest RIIR (Reportable Injuries and Illnesses per 200,00 work hours) Since the beginning of the pandemic, No accident-related fatalities or irr
Slide 5: Solvay Today
SOLVAY TODAY page 5 Full Year 2020 Earnings
Slide 6: Essential and emerging stronger
Essential and emerging stronger Full year 2020 earnings
Slide 7: 2020: Adapting fast to create value in line with our values
2020: Adapting fast to create value in line with our values Our Our Our Our Purpose Strategy Culture Solutions We bond people, G Growth We align our ideas Our new common technologies to customer and elements to operating model R Resilience and societal needs on reinvent progress helps us work more m
Slide 8: 2020: building a sustainable future
2020: building a sustainable future People Planet Financials • No accident-related fatalities or irreversible accidents • Launch of Solvay One Planet and joined • 7 quarters of positive increasing Free Paris Accords (Feb’20) and committed to Cash Flow (€963 million in 2020) • 16 weeks leave worldwid
Slide 9: The energy transition at Solvay 2019-2020
The energy transition at Solvay 2019-2020 Dombasle (FR) Linne Herten (NL) SOLVEO project Wood pellets co-firing Solar farm 6,8 MW Soda Ash Technology Solutions -240 kt CO2/y -16 kt CO2/y -2 kt CO2/y Specialty Polymers Operation in 2024 January 2019 September 2020 Soda Ash Green River (WY) : Welland
Slide 10: Partnering with our customers to address today's challenges
Partnering with our customers to address today’s challenges New Innovations Composite sustainable ActizoneTM & structures for tire platform Rhodasurf® zero-emission air taxis Partnership with Henkel values Solvay Partnership with Bridgestone innovations Vertical Aerospace 77% €291M 135 of expected R
Slide 11: 2020 Performance
2020 PERFORMANCE page 11 Full Year 2020 Earnings
Slide 12: Full Year 2020 Performance
Full Year 2020 Performance Record free cash flow and cost delivery FREE CASH FLOW NET SALES UNDERLYING EBITDA continuing operations € € € 963m 8,965m 1,945m ● Disciplined working capital ● Resilient portfolio ● 21.7% EBITDA margin ● Structural improvements ● Down 10% organic basis ● High quality earn
Slide 13: Resilient portfolio and cost reductions deliver strong results
Resilient portfolio and cost reductions deliver strong results Materials -18.7% Solutions -11.8% organic organic Underlying ● Civil aircraft build rates impact EBITDA ● Growth in home & personal care, volumes, while defense remains agro, coatings and electronics resilient ● Oil & gas remains under p
Slide 14: High focus and delivery on FCF and deleveraging
High focus and delivery on FCF and deleveraging 5 yr reference Free cash flow Underlying net to Solvay shareholders financial debt continuing operations in € billion in € million Leverage in time 2.6x 2.0x 2.2x 5 yr reference 5 yr reference Provisions in € billion page 14 Full year 2020 earnings
Slide 15: Transformation
TRANSFORMATION page 15 Full Year 2020 Earnings
Slide 16: Strategic announcements
Strategic announcements PORTFOLIO ● Divestments underway for six business lines, expected to close in first half of 2021. ● Solvay's Soda Ash business unity to become a separate and fully controlled legal structure to optimize cash flow, returns, accountability and increase strategic portfolio flexibil
Slide 17: Outlook
OUTLOOK page 17 Full Year 2020 Earnings
Slide 18: Outlook: Poised for the rebound
Outlook: Poised for the rebound FY COSTS Q1 EBITDA FY FREE CASH FLOW Cost savings of In a range between In a range between ~€150m gross €520 and €550m €600m and €650m FCF conversion 30%+ Financial assumptions full-year 2021 • EBITDA ⇒ Scope and Forex effect of €-120 million • Free Cash Flow ⇒ Capex
Slide 19: Investing in sustainable growth platforms
Investing in sustainable growth platforms 2020 New PLATFORM Thermoplastic Composites EV Batteries Hydrogen & Clean Energy Combining our expertise in Materials for binders, Membranes & electrodes polymers and composites electrolytes, and separators of PEM electrolysers & fuel cells page 19 Full year
Slide 20: Q&A
Q&A page 20 Full year 2020 earnings