Solvay Sa · EURONEXT:SOLB
Solvay Sa — ESG Presentation (September 2014)
55 slides from Solvay Sa's sustainability presentation, Sep 18, 2014
Slide 1: Developing a model of Sustainable Chemistry
Developing a model of Sustainable Chemistry Michel Washer Deputy Chief Sustainability Officer
Slide 2: Our strengths in the world of chemistry
Our strengths in the world of chemistry Developing a model of Sustainable Chemistry 2 18/09/2014
Slide 3: Global chemical demand growth driven by Asia and megatrends
Global chemical demand growth driven by Asia and megatrends … Climate Resource change scarcity Global Demand chemical from Asia demand > 60% in 2030 > 50% €3 in 2013 trillion in 2013 +4% CAGR 2013 - 2030 Health and Expanding well-being middle class Source: BCG Developing a model of Sustainable Chemi
Slide 4: … in a contrasted macro-economic environment
… in a contrasted macro-economic environment United States Europe China Gas price in 2013 in US$/million BTU 3.7 11.1* 9.7 GDP CAGR 2013 - 2017 2.9% 1.4% 7.1% INVESTMENTS RATIONALIZATION INVESTMENTS Chemical industry output over 2012 - 2020 +40% +2% +48% * Germany Source: ACC April 2014, IMF April 2
Slide 5: Solvay well positioned on growing markets
Diversified end-markets* Solvay well positioned on growing markets 17% Automotive & Aeronautics Balanced 25% geographic exposure* Consumer Goods & Healthcare North Europe Food, Agro 12% America & Feed Solutions 25% 33% Energy 11% & Environment Asia- Building 10% Latin & Construction Pacific America
Slide 6: 90% of our sales from businesses where Solvay ranks among the top 3 players
90% of our sales from businesses where Solvay ranks among the top 3 players Advanced Advanced Formulations Materials Performance Functional Chemicals Polymers Developing a model of Sustainable Chemistry 6 18/09/2014
Slide 7: A responsible value creating transformation
A responsible value creating transformation Developing a model of Sustainable Chemistry 7 18/09/2014
Slide 8: Building a new model of Sustainable Chemistry
Building a new model of Sustainable Chemistry Building a strong leader contributing to the reshaping € 9,938 m 29,400 of the global chemical industry. net sales* employees** Asserting ourselves as a model of sustainable chemistry attracting and developing talented people who conceive, design and pro
Slide 9: Boosting our Performance levers
Boosting our Performance levers Developing a model of Sustainable Chemistry 9 18/09/2014
Slide 10: Creating Responsible value
Creating Responsible value Developing a model of Sustainable Chemistry 10 18/09/2014
Slide 11: Enhancing our Business profile
Enhancing our Business Solvay’s position in the global chemical market profile GROW Chemlogics PVC Chlor Chemicals IMPROVE OUR COMPETITIVENESS Indupa REDUCE OUR EXPOSURE Value-creation potential Solvay businesses of market segments Evolution of the Group’s average position Developing a model of Sust
Slide 12: Growing by developing our production facilities
Growing by developing our production facilities Novecare > Specialty Surfactants plant in Germany Aroma Performance > Vanillin plant in China Specialty Polymers > Fluoro-polymers JV with 3F Silica > HDS plant in Poland 2014 85 ktonnes/year Expected Rusvinyl* > PVC plant in Russia (in JV with Sibur)
Slide 13: Innovating to create more sustainable solutions
Innovating to create 15 more sustainable solutions R&I centers 6 major innovation fields allowing Solvay to meet the challenges of the next 20 years 1,960 Eco- R&I staff Advanced materials processes € 280 m R&I efforts Sustainable Advanced energy MEGATRENDS formulations 252 patents filed in 2013 Org
Slide 14: Striving for excellence across all areas
Striving for excellence across all areas Positive impacts of excellence programs on REBITDA (vs YE 2013) Commercial Innovation Operational excellence* excellence + € 120 m + € 250 m + € 300 m Overall + € 670 m by 2016 * Including Overall Equipment Efficiency Developing a model of Sustainable Chemist
Slide 15: Our financial and non-financial results
Our financial and non-financial results Developing a model of Sustainable Chemistry 15 18/09/2014
Slide 16: FY and H1 2014 results: Delivering on a strategy
FY and H1 2014 results: Delivering on a strategy Net Sales Net Sales* REBITDA* € 9.9 bn (5)% € 1,663 m (12)% FY 2013 yoy yoy Delivery in a Challenging economic Net Income Free Cash Flow environment € 378 m € 487m Adjusted, Group share * Before restatement resulting from the application of IFRS 11 ad
Slide 17: Social and environmental results
Social and environmental results 15.1 14.9 13.5 Accidents 2.92 Greenhouse involving 2.59 gas emissions(2) 2013 2012 2011 MtCO2 equivalent persons at Group sites(1) Accidents per million working hours. 227 222 1.06 168 MTAR : Medical Treatment Accident Rate Energy 2013 2011 2012 2013 2011 2012 Number
Slide 18: Confident in our ability to build a new model of Sustainable Chemistry
Confident in our ability to build a new model of Sustainable Chemistry Poised On track towards Stronger for growth 2016 targets Developing a model of Sustainable Chemistry 18 18/09/2014
Slide 19: A highly demanding genuine ESG commitment
A highly demanding genuine ESG commitment Developing a model of Sustainable Chemistry 19 18/09/2014
Slide 20: Our sustainable vision
Our sustainable vision Global issues Climate change, increasing global population, scarcity of raw materials, geopolitical environment changes, development gaps, biodiversity Sustainable Development policy Rising expectations and 2020 targets Legal and regulatory framework, public Anual Solvay W
Slide 21: Our sustainable actions
Our sustainable Achieving excellence in safety, health and 1 occupational hygiene for 2 Realizing an increasing actions everyone on our sites share of our sales avec With solutions that meet the requirements of sustainable development Continuously improving the performance of our 3 technologies, pro
Slide 22: Our sustainability targets
Our sustainability targets Energy & Water* Emissions & People safety Sustainable Learning & climate* effluents* Portfolio development 10% Reaching a number of a work accident with Management 10% reduction in the 25% medical treatment per million hours lower (SPM) Ensuring reduction in greenhouse gas
Slide 23: Our Solvay Way
Our way The CSR management tool Self-assessment which allows each entity to identify areas of im- Regularly audited provement and to implement action plans (internally & externally) Developing a model of Sustainable Chemistry 23 18/09/2014
Slide 24: Our commitments toward our stakeholders
Our 23 commitments toward our stakeholders Developing a model of Sustainable Chemistry 24 18/09/2014
Slide 25: A global CSR agreement
A global CSR agreement Global Corporate Social Responsibility Our agreement with IndustriALL is agreement between the expression of the Group’s willingness to respect fundamental social rights around the world and & the Group’s standards for rich and balanced social dialogue Main chapters In
Slide 26: Our unmatched Sustainable Portfolio Management
Our unmatched Sustainable Portfolio Management 0% • Produce Ecoprofile • Cradle to gate, • Business Vulnerability Operations following guidelines from • Capital Expenditure EcoInvent project • Shadow costs 50% • Research & Innovation project • Monetize it • Pull it back on the average 5 year sales p
Slide 27: Examples of product - application combinations
Examples of product - application combinations Operations vulnerability Building block for agro- chemicals 20% Non-biodegradable chemical Bio-based chemical used in Bio-based chemical used in DIY decorative paint, hair care, used in automatic with no market pull for with strong market pull dishwashe
Slide 28: Walking the sustainable talk
Walking the sustainable talk 10% of the annual variable bonus of 7,500 managers (including senior management) relates to CSR criteria 2013 sustainability objectives per GBU, Function and Corporate Deployment of the Solvay Way 100% of site realized self-assesment Accomplished in full Group Entering
Slide 29: Inventing a new model of sustainable chemistry
Inventing a new model of sustainable chemistry Developing a model of Sustainable Chemistry 29 18/09/2014
Slide 30: Annexes
Annexes Developing a model of Sustainable Chemistry 30 18/09/2014
Slide 31: Corporate Governance
S asking more from chemistry Corporate Governance
Slide 32: Executive Committee
Jean-Pierre Clamadieu Karim Hajjar Chairman of the Executive Committee Executive Chief Financial Officer and CEO Committee Jacques Vincent van Rijckevorsel De Cuyper Each Executive Committee member supervises GBUs, Functions and/or Zones Roger Kearns Pascal Juéry Developing a model of Sustainable Ch
Slide 33: Corporate Governance
Corporate Governance References codes and values: the Group firmly believes in ethical behavior, respect for people, customer care, empowerment and teamwork 2009 Belgian Corporate Governance Code adopted for Governance matters Solvay Code of Conduct applying to every employee and listing the guideli
Slide 34: Compensation policy
Compensation policy Board of Directors Fixed emoluments only, set by the Shareholders Meeting Executive Committee & General Managers Compensation policy decided by BoD New compensation policy as from 2013, harmonized across the Group, aligned with market practices, and comprising Fixed and Variable
Slide 35: Solvay Way Network
S asking more from chemistry Solvay Way Network
Slide 36: The Solvay Way network
The Solvay Way network Sustainable Development Department (6) 9 Functions 19 Business Units 3 Zones Champions Champions Champions Expert Operational Cultural knowledge Network of correspondents Network of correspondents Network of correspondents based per zones based at production sites, based at pr
Slide 37: Solvay Operating Business Segments
Solvay Operating Business Segments
Slide 38: Our activities
Our activities Advanced Functional Performance Chemicals Formulations Polymers Soda Ash & Derivatives Novecare Peroxide Polyamide & Intermediates Coatis Acetow Engineering Plastics Aroma Performance Eco-Services Fibras Emerging Biochemicals Corporate Advanced Specialty Polymers Energy Services & Bus
Slide 39: Advanced Formulations
Advanced Formulations Advanced Formulations Growth engine for the Group, this Segment offers the innovative offering aligned with major societal trends: population growth, new consumption patterns, etc. € 2,432 million Net sales NOVECARE COATIS € 369 million AROMA REBITDA PERFORMANCE 2013 figures De
Slide 40: Advanced Formulations
Advanced Formulations NOVECARE COATIS AROMA PERFORMANCE • The world’s leading • First Latin American • World’s number one producer of specialty producer of phenol and producer of diphenols and derivatives; leader in surfactants; major player in fluoroaliphatic derivatives oxygenated solvents the pol
Slide 41: Advanced Materials
Advanced Materials Advanced Materials Another growth engine and a leader on markets with high entry barriers, the cutting-edge activities of this Segment generate high returns on investment. SPECIALTY POLYMERS SILICA € 2,551million Net sales RARE SPECIAL € 646million EARTH CHEMICALS SYSTEMS REBITDA
Slide 42: Advanced Materials
Advanced Materials SPECIALTY SILICA POLYMERS • World’s number one • World leader in applications producer of specialty and for energy-saving tires and high-performance polymers inventor of highly dispersible silica • Main markets: energy, medical applications, • Main market/products: fuel- water, ad
Slide 43: Advanced Materials
Advanced Materials RARE EARTH SPECIAL SYSTEMS CHEMICALS • World’s number one • A World leader in fluor, supplier of specialty rare strontium and barium- earth formulations, with a based specialties global market share of over • Main markets: energy 25% conservation and storage, semiconductors, • Mai
Slide 44: Performance Chemicals
Performance Chemicals Performance Chemicals Operating on mature markets with low cyclicality, this Segment’s success is based on economies of scale, competitiveness and quality of service SODA ASH ECO & DERIVA- SERVICES TIVES € 3,125 million EMERGING Net sales PEROXIDES BIOCHEM- ICALS € 724 million
Slide 45: Performance Chemicals
Performance Chemicals SODA ASH & PEROXIDES ACETOW DERIVATIVES • The world’s leading • Leading global supplier of • Leading global producer of producer of soda ash and hydrogen peroxide cellulose acetate tow for sodium bicarbonate cigarette filters; number 1 in • Main markets: chemicals, CIS and Sout
Slide 46: Performance Chemicals
Performance Chemicals ECO EMERGING SERVICES BIOCHEMICALS • Number one in sulfuric • Leading producer of acid regeneration in the chlorovinyl in Southeast Asia; United States Inventor and world leader in EPICEROL® technology; • Produces and regenerates the sulfuric acid used in • Main markets: consum
Slide 47: Functional Polymers
Functional Polymers Functional Polymers The GBUs in this Segment concentrate on polyamide 6.6. Right now engaged in major competitiveness improvement programs, they have opened new markets by launching innovative solutions € 1,763 million POLYAMIDE & Net sales INTERMEDIATES FIBRAS € 93 million ENGIN
Slide 48: Functional Polymers
Functional Polymers POLYAMIDE & FIBRAS ENGINIEERING INTERMEDIATES PLASTICS • A leading world producer • Latin America’s number one • Global specialist in polyamide of polyamide 6.6 and adipic manufacturer of polyamide 6.6-based solutions acid (nylon) • Produces high performance • Main markets: autom
Slide 49: Corporate & Business Services
Corporate & Business Services Corporate & Business Services This Segment brings together the functions and services charged with achieving the Group’s objectives of operational excellence, energy efficiency and collaborative innovation. € 67 million Net sales ENERGY SERVICES € (169) million BUSINESS
Slide 50: Corporate & Business Services
Corporate & Business Services ENERGY BUSINESS SERVICES SERVICES • A team of experts in energy and CO2 • Internal structure developing added-value shared optimization dedicated to industries services for the Group in Information Systems and the main administrative processes that are • 2 missions: Ord
Slide 51: Solvay partner of Solar Impulse
Solvay partner of Solar Impulse From day one and for ten years now, Solvay has been part of the Solar Impulse adventurous and daring project, which in 2004 many thought was inconceivable. Thanks to this “Flying Lab” Solvay could put into practice its expertise in advanced materials and sustainable e
Slide 52: Solvay materials in Solar Impulse
11 13 7 Non-linear Inflatable KetaSpire® PEEK numerical mobile PrimoSpire® SPR modeling hangar Light weight/metal Numerical simulations 12 Beyond the airplane replacement Emana based on Polyamide 6.6 2 For performance pilot wear Solstick® Energy capture 1 Halar® 10 Energy capture Fomblin® Lubricatio
Slide 53: Glossary
Glossary Adjusted performance indicators exclusively exclude non-cash Purchase R&I Price Allocation (PPA) accounting impacts related to the Rhodia acquisition Research & Innovation Adjusted net income (Solvay share) BTU Net income (Solvay share) excluding non-cash Purchase Price Allocation British T
Slide 54: Sustainable Portfolio Management Market alignment categories
Sustainable Portfolio Management Market alignment categories PAC for which there is a positive signal, in line with sustainability Star trends in the marketplace, with anticipated double-digit growth PAC for which there is a positive signal resulting from Aligned sustainability trends in the marketp
Slide 55: www.solvay.com
www.solvay.com SO LVAY asking more from chemistry®