Solvay Sa · EURONEXT:SOLB
Solvay Sa — Investor Presentation (June 2022)
26 slides from Solvay Sa's investor presentation, Jun 15, 2022
Slide 1: Consumer Investor Webinar
Consumer Investor Webinar June 15, 2022
Slide 2: With you today
Dr. Ilham Kadri CEO and President of the Executive Leadership Team of Solvay With Mike Radossich President of Novecare business you today An Nuyttens President of Aroma Performance and Silica businesses Jean-Pierre Marchand Vice President of Technology, Novecare page 2 Consumer - Investor webinar
Slide 3: Solvay webinar events to continue
Solvay webinar events to continue ESG / Carbon Soda Ash Aero & Defense Capital Neutrality Plan performance 2H 2022 Markets Day December 1 update H1 February 23 2021 2022 2023 Soda Ash & Auto / Consumer Peroxides EV Batteries market 2H 2022 February 2 June 15 page 3 Consumer - Investor webinar
Slide 4: Optimized businesses move to SpecialtyCo
Optimized businesses move to SpecialtyCo Novecare G R RESILIENT O W Solutions : Optimize to unlock value Aroma Performance Technology Solutions GROWTH OPTIMIZE WIN Oil & Gas CASH Materials SpecialtyCo Consumer €6.0bn & Resources page 4 Consumer - Investor webinar 4
Slide 5: Consumer market key takeaways
Consumer market key takeaways Sustainability Track record of Proven, repeatable driving outgrowing in our key growth model with premiumization segments on the back continuous portfolio and growth in our of leadership positions upgrading key markets page 5 Consumer - Investor webinar
Slide 6: Portfolio enhancements significantly improved profitability
Portfolio enhancements significantly improved profitability 1 2 3 4 5 Launch of commercial & Acquisition of operational excellence Divestment of Start of portfolio Oil & Gas segment split Bayer seed coatings programs, resulting in commodity upgrading via a thorough from “Consumer” into business (2021)
Slide 7: Accelerating to high-single digit growth and further expanding margins
Accelerating to high-single digit growth and further expanding margins Consumer sales (€ bn) High-single digit organic sales growth 3 Mid-single digit organic sales growth 2 1 2018 2021 2025 0 ~4%pts ~5%pts EBITDA margin expansion Projected EBITDA margin Source: Solvay internal data expansion page 7
Slide 8: Presenters
Mike Radossich President of Novecare business Presenters An Nuyttens President of Aroma Performance and Silica businesses page 8 Consumer - Investor webinar
Slide 9: Focus on key consumer market segments
Focus on key consumer market segments ~20% ~20% ~15% ~10% ~35% Agro Home & Coatings Food, Flavors Other Personal Care & Fragrances (Chemical Intermediates) Consumer Sales EBITDA margin Circular sales1 Organic sales growth FY 2021 (mid-term CAGR) € 2.0 bn ~19 % ~22% High single-digit 1. Based on Elle
Slide 10: Key sustainability megatrends are driving each market
Key sustainability megatrends are driving each market MEGATRENDS Naturalness Sustainability Carbon neutrality Sustainable sourcing MARKET TRENDS Agro Home & Food, Flavors Coatings Personal Care & Fragrances Precision farming Sustainable sourcing Efficiency improvement Sustainable sourcing Yield impro
Slide 11: Customers embrace and accelerate these megatrends
Customers embrace and accelerate these megatrends MEGATRENDS Naturalness Sustainability Carbon neutrality Sustainable sourcing AMBITIONS OF TARGET CUSTOMERS Food, flavors, Agro HPC Coatings fragrances “…our aim is to reduce the “We have the ambition to “Reduce waste disposal “We aim for 100% of key r
Slide 12: Markets are accelerating thanks to sustainable megatrends
Markets are accelerating thanks to sustainable megatrends Home & Food, Flavors Agro Personal Care Coatings & Fragrances 4-5% ~4% ∽4% 3-4% 3-4% ~3% ~2% 1-2% 2018-2021 2021-2025 2018-2021 2021-2025 2018-2021 2021-2025 2018-2021 2021-2025 Agrochemicals market Home & personal care market Paints & varnis
Slide 13: Proven track record of outgrowing each market
Proven track record of outgrowing each market Historical Solvay performance vs. market Food, Flavor Agro HPC Coatings & Fragrances ∽10% ∽9% ∽6% ∽5% 3-4% ~3% ~2% 1-2% Market Solvay Market Solvay Market Solvay Market Solvay Agrochemicals market Home & personal care market Paints & varnishes market FFF
Slide 14: Proven growth model drives outperformance
Proven growth model drives outperformance Co-develop tailored solutions through sustainable chemistry & application know-how Full access to tier 1 customers 1 ~6%pts higher NPS1 vs. peers 13 R&I and application labs ~17% of sales from new products2 Upgrade, differentiate and Asset-light, flexible and
Slide 15: Global coverage with multipurpose production plants and R&I labs
Global coverage with multipurpose production plants and R&I labs serving all consumer segments North America RENEWABLE MATERIALS & APAC BIOTECH PLATFORM Latin America EMEA R&I or expertise center Global coverage for each consumer segment Asset light and multipurpose plants 7 R&I centers 75% of plant
Slide 16: Innovation Case Studies
>€5bn Addressable market Innovation Case Studies page 16 Consumer - Investor webinar
Slide 17: Market leader in green solvents
Market leader in green solvents Increased demand for more sustainable solvents Context Portfolio update Regulations and customer We developed preferences are shifting towards the green solvent higher sustainable solutions Rhodiasolv® IRIS Portfolio upgrade offers key benefits to our customers Better
Slide 18: Leader in biodegradable guar
Leader in biodegradable guar Sustainably sourced, biodegradable polymer portfolio expansion Context Portfolio updates We have a strong portfolio in Recently added 2 new biodegradable has joined our biodegradable polymers that guar-based solutions to our portfolio: Sustainable Guar we continuously ex
Slide 19: Developing solutions for a cleaner, safer future
Developing solutions for a cleaner, safer future Innovative, patented technology delivering long-lasting surface disinfection Context Portfolio update Consumers want confidence Introduction of ActizoneTM, which knowing they are protected from cleans surfaces while providing microbes and viruses for a
Slide 20: Leader in binders for waterborne coatings
Leader in binders for waterborne coatings Development of new coating monomers with increased durability and sustainability Customer access Customer needs Collaboration projects with the Improved durability & top 2 coating manufacturers in sustainability of waterborne North America architectural coat
Slide 21: Global leader in natural vanillin
Global leader in natural vanillin Upgrade of our natural vanillin capacity Context Portfolio update We are the market leader In May 2022, we invested in vanillin for FFF, in Suanfarma’s fermentation plant and are developing to further expand our natural natural solutions vanillin capabilities Portfo
Slide 22: The Renewable Materials and Biotechnology platform embeds circularity in business
The Renewable Materials and Biotechnology platform embeds circularity in business 1 Potential Battery Materials Renewable to contribute carbon Sustainable 2 Thermoplastic technology €0.5bn Composites in revenues 3 Solvay’s Renewable by 2030 Materials & Green Hydrogen Biotechnology platform 4 End-of-
Slide 23: Conclusion
Conclusion page 23 Consumer - Investor webinar
Slide 24: Further innovations across the Consumer portfolio
Further innovations across the Consumer portfolio MEGATRENDS Naturalness Sustainability Carbon neutrality Sustainable sourcing SOLVAY INNOVATIONS Agro Home & Food, Flavors Coatings Personal Care & Fragrances Green solvents Sulfate-free & biodegradable Waterborne performance Natural vanillin producti
Slide 25: Consumer - Key takeaways
Consumer - Key takeaways Our key markets Track record of We upgraded our are accelerating, outgrowing in our portfolio through as the key segments on the innovation and sustainability trend back of leadership M&A, and have a drives positions proven model for premiumization growth Mid single-digit So
Slide 26: Q&A
Q&A Follow us on solvay.com page 26