Solvay Sa · EURONEXT:SOLB
Solvay Sa — Investor Presentation (February 2023)
22 slides from Solvay Sa's investor presentation, Feb 27, 2023
Slide 1: Soda Ash & Bicar Webinar
Soda Ash & Bicar Webinar February 27, 2023 page 1
Slide 2: With you today
Ilham Kadri CEO and President of the Executive Leadership Team of Solvay With you today Philippe Kehren President, Soda Ash & Derivatives Alexandre Blum Finance Director, Soda Ash & Derivatives page 2 Soda Ash Webinar
Slide 3: Essential chemicals company with strong cost and cash leadership enabling further growth
Essential chemicals company with strong cost and cash leadership enabling further growth Soda Ash & Derivatives EssentialCo Investments Peroxides support the future company’s €5.5 bn Silica growth and sustainability 2022 Net sales Coatis ambitions Special Chem page 3 Soda Ash Webinar
Slide 4: Soda Ash & Derivatives business key takeaways
Soda Ash & Derivatives business key takeaways Track record of Strongly exposed to Global Leader Accelerating the Reinventing the strong & resilient attractive and with world-class energy transition to synthetic Solvay cash generation, fast-growing Bicar assets for natural be carbon neutral Soda Ash
Slide 5: Presenter
Presenter Philippe Kehren President, Soda Ash & Derivatives business page 5 Soda Ash Webinar
Slide 6: ~€2.2bn business with strong fundamentals
~€2.2bn business with strong fundamentals SODA ASH BICAR ~20% ~15% ~10% ~30% ~25% Solvay sales ’22E Flat glass Container glass Water softener for Other applications Flue gas treatment, (construction, solar (food & beverages) detergents incl. sodium silicates, pharma, feed, food panels, automotive) l
Slide 7: Strong tailwinds from sustainable megatrends
Strong tailwinds from sustainable megatrends MEGATRENDS Sustainable & Efficient Resources Renewable Energy Evolving Demographics MARKET TRENDS Construction Energy & electrification Food & beverages Health & environment • Architectural and • Demand for solar panels • Demand for sustainable • Tighter co
Slide 8: Highly resilient operating rates with stable demand growth
Highly resilient operating rates with stable demand growth Soda Ash global Global Soda Ash Key messages rate evolution capacity & demand excl. China (%) excl China (Mt) 100% Tight market conditions 80 Resilient demand throughout cycles 60 40 Long term stable operating Operating rates (left axis) rat
Slide 9: We are strongly exposed to the highest growing Bicar segments
We are strongly exposed to the highest growing Bicar segments Market acceleration driven by flue gas treatment and healthcare Flue gas treatment Global leader, supplying one third Bicar market size by end-market, of the flue gas incl. China (in Mt) CAGR treatment market 18 - 22 22 - 27 10 7.8 ~4-5% ~3
Slide 10: EBITDA growth poised to double over the next five years
EBITDA growth poised to double over the next five years Key drivers of EBITDA SA&D EBITDA delivery growth (indexed to 2013) ~10% CAGR 2022-2027F Market tightening supporting pricing ~5% CAGR 2013-2022 Additional capacity investments for natural Soda Ash in US and Bicar ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20
Slide 11: Leadership position founded on scale, technology, cost, and unique position across the value chain
Leadership position founded on scale, technology, cost, and unique position across the value chain SCALE LEADERSHIP COST LEADERSHIP Down- and upstream TECHNOLOGY with balanced with combination of VALUE CHAIN LEADERSHIP with portfolio and world-class assets INTEGRATION product and process ability to
Slide 12: We are global market leader in both Soda Ash and Bicar
We are global market leader in both Soda Ash and Bicar Global #1 position in Soda Ash Global #1 position in Bicar APAC (7%) Other (36%) NAM (21%) NAM (35%) Natural (43%) Other (52%) 10% 11% 4% 6% 12% 6% EUROPE (72%) EUROPE (57%) Synthetic (57%) % 13 15% 18% 17% Market Solvay Production Market Solvay
Slide 13: Synthetic Soda Ash: down- and upstream integration into raw materials and bicar
Down- and upstream integration into raw materials and bicar Raw materials Products Applications End-markets Pharmaceutical solutions Healthcare Synthetic Soda Ash process (~55%) Carbon Calcium Limestone chloride dioxide Food & feed Nutrition Ammonia Air treatment Environment Salt brine Bicar Deterge
Slide 14: Clear path towards carbon neutrality by 2050
Clear path towards carbon neutrality by 2050 Synthetic Natural Key messages Dense Soda Ash emission factor (scopes 1+2) t CO2 / t SA Coal phase out Coal phase out & GHG abatement Further decarbonization 30% emission reduction Further committed and planned by 2030 decarbonization through full coal ph
Slide 15: We are delivering on our energy transition commitments
We are delivering on our energy Key messages transition commitments On-site solar farm (Les Petons, BE) completed in 2021 Biomass Achieved 5% emission reductions (Rheinberg, DE) - GHG impact -4%* Waste-To-Energy Stage 1 completed in ’21 / stage 2 in ‘24 via initiatives in Rheinberg, (Dombasle, FR) D
Slide 16: Taking action to improve environmental impact beyond CO2 emissions
Taking action to improve environmental impact beyond CO2 emissions Saving Water Reducing Effluents Regenerating Biodiversity -30% freshwater -20% solid discharge by 20302 Rewilding of a former consumption by 20301 quarry and visual landscape improvement Devnya, Bulgaria (-24%) Rosignano, Italy Quarry
Slide 17: Our breakthrough innovation for a more sustainable process
Our breakthrough innovation for a more sustainable process -50% -20% 2014 €40M CO2 Energy First technology Investment emissions consumption patent up to date 2023-2024 2025-2030 2030-2050 Process Technology Industrial Pilot Design Integration in Hybrid Full Validation & Trials Mode implementation pa
Slide 18: Electrified Soda Ash process
Yield We are reinventing the Solvay process improvement leading to -20% brine Current Solvay process required Soda ash plant Brine Brine Soda ash NH4Cl CO2 NH3 -30% limestone required Limestone Limestone Lime kilns Ammonia recovery Lime Limestone Complete (ponds) removal of limestone Fuels Limestone
Slide 19: Soda Ash & Bicar key takeaways
Soda Ash & Bicar key takeaways Track record of Strongly exposed to Global Leader Accelerating the Reinventing the strong & resilient attractive and with world-class energy transition to synthetic Solvay cash generation, fast-growing Bicar assets for natural be carbon neutral Soda Ash production marg
Slide 20: Q&A session
Ilham Kadri CEO and President of the Executive Leadership Team of Solvay Q&A session Philippe Kehren President, Soda Ash & Derivatives Alexandre Blum Finance Director, Soda Ash & Derivatives page 20 Soda Ash Webinar
Slide 21: Safe harbor
Safe harbor 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
Slide 22: solvay.com
Progress beyond solvay.com