Solvay Sa · EURONEXT:SOLB
Solvay Sa — FY2023 Earnings Presentation
20 slides from Solvay Sa's earnings presentation, Mar 13, 2024
Slide 1: Full-year 2023 results
Philippe Kehren CEO Alexandre Blum CFO Full-year 2023 results Earnings call March 13, 2024
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: Safety at the heart of our operations
Safety at the heart of our operations RIIR (Reportable Injuries and Illness per 200,000 work hours) 0.40 (68) 0.27 0.27 (47) (46) 4 4 4 4 3 2 2 3 3 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 H-RIIR RIIR 3 Full-year 2023 results
Slide 4: 100 days: My first days
My first 100 days 100 4 Full-year 2023 results
Slide 5: Leadership across businesses, essential to multiple end-markets
Leadership across Essential to multiple businesses end-markets 32% Soda Ash 10% 4% Electronics Resources, Environment & 22% Energy Industrial 13% Applications 11% & Chemical Coatis % Bicar 13% industry % of Net Building & others of Net Sales 14% Sales 17% Special Chem1,2 18% Consumer goods, Home & H
Slide 6: 4 strategic priorities
4 strategic priorities Market Cost & Process Energy Capital Leadership Leadership Transition Discipline Leverage Drive Deliver Prioritize #1 position Excellence & Carbon Cash in every competitiveness neutrality generation market & dividends 6 Full-year 2023 results
Slide 7: Strategy in actions
Strategy in actions Recent developments Pursuing the development of a European rare earths hub for permanent magnets Star-Factory: building the plants of the future Coal phase-out in Green River Planning to build the world first carbon-neutral soda ash plant by 2030 Cautious capital spending 7 Full-y
Slide 8: 2023 ESG performance demonstrates strong progress on climate and better life
% -19 2023 ESG performance demonstrates strong progress on climate and better life Drastically reducing our CO2 emissions with 40 energy transition projects 2023 2021 Progress Targets Scope 1 & 2 GHG Emissions (Mt) 7.3 9.0 -19% -30% by 2030 Scope 3 GHG Emissions (Mt) 12.4 14.7 -16% -20% by 2030 Coal
Slide 9: Financials: A New Solvay
Financials A New Solvay New segments Basic Chemicals Partial Demerger • Soda Ash & Derivatives & Peroxides: Chemical intermediate businesses Specialty Businesses reported focused on mature and resilient as discontinued operations markets • Serve major markets such as building and construction, depol
Slide 10: Full year 2023 results: Another year of leadership and resilience
Full year 2023 results Another year of leadership and resilience € € € € 4.9bn 1.2bn 0.6bn 1.5bn 20.4% NET SALES Underlying EBITDA FCF1 Underlying Net Debt ROCE2 -12.6% yoy +0.2% organic 45% FCF conversion 1.2x leverage 2 -2.5pp 25.5% EBITDA margin last 12 months 10 Full-year 2023 results 1. To Solv
Slide 11: Full Year EBITDA bridge
€1,246m in 2023 Full Year EBITDA bridge vs € 1,359m in 2022 Resilience vs 2022 with stable margins +1.0pp Margin Margin 25.4% 25.5% Lower volumes from softer demand in all end markets Scope Forex Other Fixed (RusVinyl) conversion costs Positive net pricing Volume Net & mix pricing Lower fixed costs +
Slide 12: Basic Chemicals results
Basic Chemicals results Q4 2023 (€m) % YoY % YoY organic FY 2023 (€m) % YoY % YoY organic Soda Ash & Deriv. 499 -13% -16% Soda Ash & Deriv. 2,093 -6% -7% Peroxides 152 -23% -22% Peroxides 633 -18% -17% Net Sales 651 -15% -17% Net Sales 2,726 -9% -9% EBITDA 194 -17% -16% EBITDA 916 +7% +8% EBITDA Mar
Slide 13: Performance Chemicals results
Performance Chemicals results Q4 2023 (€m) % YoY % YoY organic FY 2023 (€m) % YoY % YoY organic Silica 134 -9% -9% Silica 583 -8% -7% Coatis 146 -22% -25% Coatis 646 -26% -29% Special Chem 201 -21% -25% Special Chem 919 -12% -11% Net Sales 480 -18% -21% Net Sales 2,148 -16% -16% EBITDA 74 -3% -7% EB
Slide 14: Strong FCF generation
Strong FCF generation €561m in 2023 Supported by EBITDA and working capital vs € 479m in 2022 Solid EBITDA Performance Capex Working Provisions capital Financing Taxes and other Positive impact from lower working capital softer demand around year end EBITDA FCF + simplification of portfolio FY 2023 F
Slide 15: Two pillars of our financial policy
1/ Investment grade Two pillars of our financial policy confirmed Target capital structure delivered Actual ⤷ Net debt: slightly lower from cash phasing € billion CMD view 31/12/2023 (separation costs) expected confirmed ⤷ Rating Provisions (employee benefits and environment): to be BBB- BBB- Remeasurem
Slide 16: Outlook
Outlook Our expectations for 2024 01 Underlying EBITDA organic growth ranging between -10% to -20% compared to 2023 restated1 02 Free cash flow2 of at least €260 million 1 Details on 2023 restated presented in Appendix 16 Full-year 2023 results 2 Free cash flow to Solvay shareholders from continuing o
Slide 17: Q&A
17 &A Q&A
Slide 18: Appendix
18 &A Appendix
Slide 19: 2023 Restated Underlying EBITDA and Net Sales
2023 Restated Underlying EBITDA and Net Sales in € million impact Underlying EBITDA Underlying Net Sales 2023 as published 1,246 4,880 phase-out thermal insulation scope -54 -107 phase-out third party energy supply scope -41 N/A Dis-synergies scope -12 N/A Zhenjiang scope -8 -25 Peroxidos do Brasil
Slide 20: Visit solvay.com
Visit solvay.com Contact media relations Contact investor relations