Solvay Sa · EURONEXT:SOLB
Solvay Sa — Investor Presentation (June 2024)
36 slides from Solvay Sa's investor presentation, Jun 25, 2024
Slide 1: Performance Chemicals Webinar
Philippe Kehren CEO An Nuyttens GBU President - Silica & Sp Chem Performance Chemicals Daniela Manique GBU President - Coatis Webinar June 25th, 2024 1
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: Introduction
Introduction Philippe Kehren 3
Slide 4: Value creation drivers common across Solvay Group
Value creation drivers common across Solvay Group Soda Ash Peroxides Silica Coatis Special Chem COMMERCIAL INNOVATION ASSETS SUPPLY CHAIN ➝ Pricing Discipline ➝ Process Innovation ➝ Operational Excellence ➝ Lean & Resilient ➝ Contracting Management ➝ Drive Down Cost Curve ➝ High Asset Utilisation ➝
Slide 5: Solvay Performance Chemicals
Solvay Performance Chemicals Additives & Ingredients essential to performance in our daily lives 3 Global Business Units Silica Coatis Special Chem 18% 12% Precipitated Silica Solvents & Polyamide chain Rare Earth Fluorine 10% 14% RE for In main Highly Dispersible Silica Latin America autocatalysis
Slide 6: Strong megatrends driving our end-markets
Strong megatrends driving our end-markets Climate change and AI & Digitalization Regionalization resource scarcity 6
Slide 7: Performance Chemicals Key Takeaways
Performance Chemicals Key Takeaways Attractive Track record of A high quality and Process and growth EBITDA growth and resilient product technology opportunities resilient cash portfolio with leadership driving thanks to generation and leading market best in class innovation and conversion positions
Slide 8: Silica
Silica An Nuyttens 8
Slide 9: ~€0.5bn Silica business with strong financial performance
SILICA ~€0.5bn Silica business with strong financial performance Tire Consumer Industrial Goods ~80% ~20% Oral Care Feed, Food, Agro Battery & MRG CAR OEM CONSUMERS Net sales Production EBITDA CAGR Cash Conversion KEY 2023 FTEs sites (last 5 years) (EBITDA - CAPEX) / EBITDA SILIC FIGURES 9 ~€ 0.5bn ~
Slide 10: The global HDS market leader ~ €1.4bn
SILICA The global HDS market leader Leader at EMEA EMEA key tire brands #1 position Americas Global HDS global market size 3 #3 #1 position Capacity production sites position 1 ~ €1.4bn ~ production 20% Capacity site ~ 35% ➝ Strong position at AP Tier 1 brands through AP global reach & security of ~
Slide 11: The inventor of Highly Dispersible Silica (HDS)
SILICA The inventor of Highly Dispersible Silica (HDS) RAW MATERIALS PRODUCTS MAIN APPLICATIONS END MARKETS Sand Highly Dispersible Silica High performance tire ➝ Automotive additive Sodium Precipitated Soda Ash Silicate Silica Carrier/Adsorbent/ ➝ Food Desiccant ➝ Feed Sulfuric Acid Abrasive / rheo
Slide 12: HDS is an essential contributor to CO2 car emission reduction
SILICA HDS is an essential contributor to CO2 car emission reduction Tire are contributing for HDS contributes for ~ 30% of the high ~ 15% of the car emissions performance tire emission reductions CO2 emission targets for new passenger car Sidewall Tread Belt ~1kg HDS in average in high performance
Slide 13: HDS growth expected above GDP due to continuous drive for emissions reduction
SILICA HDS growth expected above GDP due to continuous drive for emissions reduction and transition to EV Tire Production Drivers HDS market growth > Conventional Silica (GDP level) Original Equipment Mid Single Digit + Replacement market % CAGR (> GDP) Higher silica loading Regulation + 2022 2030 H
Slide 14: Our customers are driving the sustainable materials transition
SILICA Our customers are driving the sustainable materials transition…we offer them solutions Top tire Manufacturers circularity objectives First Bio-Circular HDS unit in Europe 2030 40% Solvay Proprietary process recycled and renewable For bio-silicate production materials 2050 100% Local sourcing,
Slide 15: Key Takeaways
SILICA Key Takeaways Future GDP+ Track record of Leader in Highly Industry growth driven by delivering steady Dispersible Silica innovation leader emission growth and cost (HDS) based on in HDS and regulation, EV discipline driving balanced global preferred partner transition, resilient cash footpri
Slide 16: Coatis
Coatis Daniela Manique 16
Slide 17: Strong cash conversion
COATIS Strong cash conversion ~25% ~20% ~15% ~15% ~25% ~25% Electronics Consumer Goods Food Industry Automotive Building Others (Packaging) Net sales Production Cash Conversion KEY 2023 FTEs sites (EBITDA - CAPEX) / EBITDA SILIC FIGURES 17 ~€ 0.6bn ~1,000 2 ~65%
Slide 18: Major regional producer of essential chemicals in Latam
COATIS Major regional producer of essential chemicals in Latam with two integrated businesses Solvents (~50%) % Market Net Regional leader in oxygenated solvents and polyamide chain Sales leadership Broad Solvents portfolio addressing a wide range of applications portfolio across resilient and growi
Slide 19: Large portfolio with an integrated value chain
COATIS Large portfolio with an integrated value chain RAW MATERIALS PRODUCTS MAIN APPLICATIONS END MARKETS Acetic Adhesives formulation ➝ Automotive Acetic Acid Solvents Extraction solvents ➝ Home & Personal Care Glycerin Paints & thinners ➝ Food industry formulation Ketonic Perfumes & Cosmetics Ace
Slide 20: Carbon Neutrality by 2030 will deliver cost savings
COATIS Carbon Neutrality by 2030 will deliver cost savings and extend further competitive advantage 2027 2030 2030 Energy Energy Offsetting Transition Transition remaining phase I phase II emissions Biomass Nature-based + Biomethane + solutions with Extend the phenol waste high integrity use of redu
Slide 21: Broadly sustainable and carbon-neutral portfolio
COATIS Broadly sustainable and carbon-neutral portfolio Carbon-neutral ➝ 95% of emissions already abated products ➝ First carbon-neutral products launched in 2023 Sustainable raw ➝ Sourcing from sustainable, local bio-ethanol for raw materials and energy materials ➝ 25% water usage reduction by 2030
Slide 22: A bio-based solvent for homecare and industrial products
A bio-based solvent that provide efficient cleaning and active solvency power for homecare and industrial products. BENEFITS : Low odor LVP-VOC Carbon Neutral Safe for humans Readily 50% renewable carbon grade and the biodegradable High Performance of Solubilization environment (Complies with EU Ecola
Slide 23: Key Takeaways
COATIS Key Takeaways Diversified market Clear regional Industry leading ESG Future growth exposure in Latam, leadership performance with low opportunities minimizing driving competitive carbon footprint. driven by global operational risk and cost advantage Leader in renewable megatrends driving stron
Slide 24: Special Chem
Special Chem An Nuyttens 24
Slide 25: ~€0.7bn business with demonstrated EBITDA resilience and solid cash generation
SPECIAL CHEM ~ €0.7bn business with demonstrated EBITDA resilience and solid cash generation Pharma, Nuclear, Refinery,... Automotive Industrial Applications Fluorine ~45% ~30% ~25% SPECIAL CHEM Automotive Emission Control Electronics High-end Applications Rare Earths ~55% ~25% ~20% Adj. to current p
Slide 26: Leveraging our back integration in hydrofluoric acid
FLUORINE Leveraging our back integration in hydrofluoric acid RAW MATERIALS PRODUCTS MAIN APPLICATIONS END MARKETS Inorganics Inorganics Aluminum Brazing chemicals ➝ Automotive fluorides ➝ Industrial, Etching, metal pickling photovoltaic, Fluorspar Hydrofluoric batteries Acid U-235 synthesis, alkylatio
Slide 27: Strong regional presence enabling safe and high quality service
FLUORINE Strong regional presence enabling safe and high quality service to our customers Leader in EMEA selected EMEA applications 3 production North America sites 3 HF production sites AP ➝ Metal Treatment 2 ➝ Refinery production sites ➝ Quartz (Electronics) AP Nocolok HF Nocolok ➝ Automotive NORTH
Slide 28: Nocolok is the automotive industry staple for aluminum surface treatment
FLUORINE Nocolok® is the automotive industry staple for Aluminum surface treatment with global demand expected > GDP NOCOLOK® brazing flux for surface Solvay offers NOCOLOK® as treatment of aluminum IS ESSENTIAL POWDER & PASTE and PAINT for production of aluminium heat formulations highly tailored to
Slide 29: Recognized rare earth formulation expertise
RARE EARTH Recognized rare earth formulation expertise combined with unique industrial know-how in rare earth separation RAW MATERIALS PRODUCTS MAIN APPLICATIONS END MARKETS ➝ Automotive Mixed REO Emissions treatment formulation ➝ Electronics Mining & RE CMP slurries, MLCC Concentration separation ➝
Slide 30: Strong positions in Rare Earth enabled by global industrial footprint
RARE EARTH Strong positions in Rare Earth enabled by global industrial footprint and tailored products Leader in EMEA Key Markets EMEAJP EMEA Automotive 1 1 Catalysis North America production production site site 1 ➝ The go-to partner of Tier 1 production sites automotive washcoat players ➝ Very str
Slide 31: Solvay at the heart of the permanent magnet value chain
RARE EARTH Solvay at the heart of the Solvay la Rochelle PLANT permanent magnet value chain With 75 years of experience, Solvay holds unique industrial know-how and asset for rare earths separation, purification and formulation in Europe Magnet & Mining & Rare Earths end Recycling Separation markets
Slide 32: Key Takeaways
SPECIAL CHEM Key Takeaways Track record of The industry expert in Strong customer Global industrial Future GDP+ delivering Fluor and Rare Earths positions footprint growth opportunities resilient EBITDA chemistries fueled by in Automotive with distinctive in Permanent Magnet, and solid cash broad pr
Slide 33: Conclusion
Conclusion Philippe Kehren 33
Slide 34: Performance Chemicals Key Takeaways
Performance Chemicals Key Takeaways Attractive Track record of A high quality and Process and growth EBITDA growth and resilient product technology opportunities resilient cash portfolio with leadership driving thanks to generation and leading market best in class innovation and conversion positions
Slide 35: Q&A
35 Q&A Q&A
Slide 36: Visit solvay.com
Visit solvay.com Contact media relations Contact investor relations