Slide 1: Creating two strong industry leaders
Creating two strong industry leaders June 16, 2023 First quarter 2023 Earnings
Slide 2: With you today
With you today Karim Hajjar CFO Ilham Kadri CEO First quarter 2023 Earnings
Slide 3: Solvay is delivering strongly on all financial metrics
Solvay is delivering strongly on all financial metrics Underlying EBITDA (€ MM) & Margin (%) Free Cash Flow (€ MM) and Conversion (%) 24.0% 51.1% 22.7% 23.3% 21.7% 37.6% 3,229 Margin 34.4% Conv. +1.3pp % 27.8 +6.6pp 2,322 2,355 1,094 1,945 963 Org. growth 843 CAGR 606 FCF +81% +12% 2019 2020 2021 202
Slide 4: Extensive progress on ESG
Extensive progress on ESG Progress 2030 targets Climate Reduce our GHG emissions (scope 1 & 2) -19% (-15% structural) -30% Delivered 2x Paris 15% Agreement Phase out coal solid fuels 100% 28% Reduce pressure on biodiversity -30% Resources 55% Sustainable solutions, % of Group sales 65% 9.3% Double o
Slide 5: Positioned for greater value creation
Positioned for greater value creation Composite Creates two strong, SpecialtyCo materials Novecare independent companies 2022 Net Sales: €7.9 Bn Specialty 2022 uEBITDA: €1.9 Bn Polymers Aroma Performance Focused strategies and operating models to Net Sales Technology better serve customers 2022 Solu
Slide 6: SpecialtyCo is a market leader in Materials & Consumers
SpecialtyCo is a market leader in Materials & Consumers MARKET POSITION High-performance polymers; leading position MATERIALS Specialty #1 in thermoplastic composites Polymers Battery Materials, Thermoplastic composites, Green Hydrogen, Renewable materials & Biotechnology #2 Composites for civil aer
Slide 7: SpecialtyCo is a leader with superior growth potential
SpecialtyCo is a leader with superior growth potential Attractive Above Innovation Partner of Strong end markets market leadership choice sustainability supported by growth evidenced for leading OEMs roadmap, tailwinds from at superior returns by unique and and FMCG with path to sustainability and p
Slide 8: SpecialtyCo has outperformed the industry
SpecialtyCo has outperformed the industry uEBITDA Margin Net Sales CAGR, 2020-22 (%) uEBITDA CAGR 2020-22 (%) ROCE Average 2020-22 (%) Average, 2020-22 (%) 22.5% 34.7% 21.6% 8.7% 21.0% 22.1% 21.2% 5.6% SCo SCo SCo SCo SCo SCo SCo SCo Peers(1) Peers(1) Peers(1) Peers(1) Superior return based Strong t
Slide 9: EssentialCo is a resilient market leader
EssentialCo is a resilient market leader MARKET POSITION Soda Ash Soda Ash (global) #1 & Derivatives Bicarbonate (global) Peroxides #1 Hydrogen Peroxide (global) €5.6Bn Silica #1 Silica for tires (global) 2022 Net sales Coatis #1 Coatis (Latin America) Special Chem #1 Rare earths for automotive cata
Slide 10: EssentialCo masters cost and cash leadership
EssentialCo masters cost and cash leadership Resilient and Global Process Supplier of Accelerating attractive leadership technology choice sustainability markets positions in key leadership with world-class roadmap backed by driving efficiency global assets with path to segments megatrends in concent
Slide 11: EssentialCo has one of the strongest profitability and cash generation profiles amongst its peers
EssentialCo has one of the strongest profitability and cash generation profiles amongst its peers Cash Conversion uEBITDA Margin Capital Intensity Average 2020-22 (%) Average 2020-22 (%) Average 2020-22 (%) Cash Conversion 7.6% 70.7% Average 2020-22 (%) 23.0% 7.1% 54.6% 16.9% ECo ECo ECo ECo ECo ECo P
Slide 12: Deep financial foundation leads to two solid credit profiles
Deep financial foundation leads to two solid credit profiles SpecialtyCo EssentialCo €1.9Bn underlying EBITDA €1.3Bn underlying EBITDA Margin of 23.6% Margin of 22.7%, Cash conversion of 71% Key strengths Key strengths Leading market positions offering higher than Leading market positions in key segme
Slide 13: Differentiated and optimized capital structures to support value creation
Differentiated and optimized capital structures to support value creation of both future entities Solvay SpecialtyCo EssentialCo In € bn Expected rating Baa2 / BBB Baa1 / BBB+ Baa3 /BBB- Expected outlook stable / neg stable /stable stable / stable Enhanced credit profile Gross debt 5.3 2.8 2.5 Balanc
Slide 14: Will you keep the Solvay name?
“Will you keep the Solvay name?”
Slide 15: Branding EssentialCo
Branding EssentialCo
Slide 16: Mastery
Essential Co Foundation MASTERY Ernest and Alfred Solvay, mastering the soda ash technological breakthrough, which has enabled many other disruptive processes. 16
Slide 17: Manifesto
Manifesto Life is made of elements coming together. We are mastering the elements. Over the past 160 years, our obsession to reach excellence has been driving us to achieve mastery of our processes. Invisible and yet so vital, our products are at the heart of everyone's life. The essential solutions
Slide 18: FROM ...
FROM ...
Slide 19: SOLVAY
SOLVAY
Slide 20: SpecialtyCo new brand
SpecialtyCo new brand
Slide 21: Explorers
SpecialtyCo Foundation EXPLORERS The Conferences gathering the most brilliant and visionary minds to collaborate on the future of science.
Slide 22: Manifesto
Manifesto The future is rich with unexplored possibilities. We are explorers. People from many horizons who dream the impossible, solve the unsolvable, partnering to pioneer the future of science. Because a sustainable future starts with our commitment, our solutions and innovations are the catalyst
Slide 23: Time to unveil the new brand...
Time to unveil the new brand...
Slide 24: Symbolizes the gathering of great minds of the 1911 Solvay Conference
It symbolizes the gathering of the 24 great minds who participated in the first Solvay Conference of 1911.
Slide 25: SYENSQO
SYENSQO SY : A reference to Solvay letters EN : A reference to Ernest Solvay SYENS : A reference to our heritage in Science since 1911 Q : In reference to the title of the first Solvay Congress : Radiation and the Quanta, who laid the foundations of quantum physics QO: is for company
Slide 26: We are explorers... We are mastering the elements
We are explorers creating We are mastering the elements breakthroughs that advance humanity. essential to our world.
Slide 27: On track for the creation of two new champions
On track for the creation of two new champions 9M key figures Shareholders’ meeting ECo & SCo November Full-year 2022 results Q1 2023 results Q2 2023 results August 3 Q3 2023 results November 3 2022 Q1 Q2 Q3 Q4 2023 Webinars Webinars Capital H1 key figures Bondholders’ Capital markets Extraordinary Au
Slide 28: Unlocking greater value for all stakeholders
Unlocking greater value for all stakeholders Leverages strong foundation following strategic transformation Establishes two strong industry leaders poised to win Management focus and strategic flexibility to drive even greater long-term success Creating two Tailored capital structures for differentia
Slide 29: Q&A
Q&A Karim Hajjar CFO Ilham Kadri CEO First quarter 2023 Earnings
Slide 30: Follow up with
Follow up with media.relations@solvay.com First quarter 2023 Earnings
Slide 31: Disclaimer (1 of 2)
Disclaimer (1 of 2) The contemplated separation is subject to general market conditions and customary closing conditions, including final approval by Solvay’s Board of Directors, consent of certain financing providers and shareholder approval at an extraordinary general meeting, and is expected to b
Slide 32: Disclaimer (2 of 2)
Disclaimer (2 of 2) This presentation contains certain financial information relating to Solvay SA (“Solvay”), as well as separate indicative financial information with respect to SpecialtyCo and EssentialCo. The financial information relating to Solvay has been derived from Solvay’s audited consolidat