Solvay Sa · EURONEXT:SOLB
Solvay Sa — Q1 2021 Earnings Presentation
25 slides from Solvay Sa's earnings presentation, May 5, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Our SolvaLite™ Results composites are up to 40% lighter than metal, allowing manufacturers to create lighter and more May 5, 2021 energy-efficient vehicles that contribute to reducing CO2 emissions.
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: Health and safety remain our top priority
Health and safety remain our top priority Likely cases Measures in place quarantine ● Safety measures for all our employees Confirmed ● 10,000 employees working remotely cases ● Business travel banned, except for critical customer needs Vaccination campaigns Source: Daily CM Digest Solvay Solidarity
Slide 4: Market recovery back to 2019 levels expected for ~90% of Solvay's markets
Market recovery back to 2019 levels expected for ~90% of Solvay’s markets Resilient through 2020 (30%) On track back to 2019 levels (~60%) Slower recovery (<10%) All % references full year 2020 figures Sources: Market recovery expectations derived from Oxford Economics (except Automotive - LMC produc
Slide 5: Q1 2021 Performance
Q1 2021 Performance Double-digit growth in EBITDA, CASH, and record margins NET SALES UNDERLYING FREE CASH FLOW EBITDA continuing operations € € € 2.4bn 583m 282m Resilient portfolio 10% organic growth yoy Disciplined working capital up 2% organically yoy and 7% 24.6% Record EBITDA margin Structural
Slide 6: Reinvest to prepare for the rebound
Reinvest to prepare for the rebound EV batteries Electronics Bio-based care Automotive Healthcare Biosourced ingredients page 6 First Quarter 2021 Earnings
Slide 7: 2020 segment figures
2020 segment figures Region (% 2020 Net Sales) Group Materials Chemicals Solutions Europe 29% 30% 36% 22% North America 28% 34% 18% 31% Latin America 11% 2% 21% 9% Asia and rest of the world 32% 34% 25% 38% End markets (% 2020 Net Sales) Group Materials Chemicals Solutions Automotive & Aerospace 22%
Slide 8: Materials
Materials Q1 2021 performance NET SALES EBITDA EBITDA y/y organic y/y organic margin Highlights - - 8 % 5 % 30 % • Volume growth driven by continued strong demand in automotive and electronics • 80% growth in batteries for hybrid and electric vehicles Net sales vs Q4’20 reported YoY reported YoY org
Slide 9: Chemicals
Chemicals Q1 2021 performance NET SALES EBITDA EBITDA y/y organic y/y organic margin Highlights + + 6 % 9 % 30 % • Growth driven by higher volumes across various markets • Volume growth in soda ash for building offset partly by container glass softness and lower prices Net sales vs Q4’20 reported Yo
Slide 10: Solutions
Solutions Q1 2021 performance NET SALES EBITDA EBITDA y/y organic y/y organic margin Highlights + + 6 % 21 % 19 % • Higher volumes driven by automotive, electronics, coatings, home & personal care, agro markets • Copper mine site re-openings driving higher production levels and greater demand for ou
Slide 11: Cost reduction momentum… reinforced
Cost reduction momentum… reinforced Realized in Q1 2021 Total costs savings to date Permanent structural levers € 80m € ● Restructuring €32m ○ €20m in administrative functions 255 m ○ €12m in industrial functions (mainly composites) Costs savings by 2024 Indirect costs reductions €40 m € 500 ● ● Pro
Slide 12: Strong cash generation Q1
Strong cash generation Q1 Credit rating stabilised by Moody’s at Baa2 Profitability Capex Δ Working Provisions Δ Financing Δ One-off Tax in Others Δ after taxes Δ capital Δ Q1 2020 FCF Q1 2020 FCF Q1 2021 Main drivers • Working capital discipline NET DEBT Leverage ratio • Capex phasing S&P MOODY’S st
Slide 13: 2021 outlook
2021 outlook COST savings EBITDA FREE CASH FLOW in a range between € € 2.0bn - € 200m € 2.2bn 650m Potential to reach 2019 FY EBITDA level on a comparable FX and scope basis despite exposure to aero and oil & gas markets Barring additional deterioration related to a 3rd wave of Covid-19 in the secon
Slide 14: Q&A
O&A S SOLVAY Progress beyond Y¥fno wl % solvay.com
Slide 15: Annexes
Annexes page 15 First Quarter 2021 Earnings
Slide 16: Reinventing Solvay to unleash our full potential
Reinventing Solvay to unleash our full potential WHY HOW WHAT Our Our Our Our Purpose Strategy Organization Solutions and Culture We bond people, G Growth We align our ideas Our new common technologies to customer and elements to operating model R Resilience and societal needs driven reinvent progre
Slide 17: 2030 Solvay One Planet goals
2030 Solvay One Planet goals 10 ambitious objectives to reduce our global impact 1: SBTi: Science Based Targets initiative, 2: ReCiPe method for biodiversity impact assessment (under development), 3: Circular economy indicators have been adapted to align with the Circulytics® developed by the Ellen
Slide 18: Accelerating innovation in growth platforms
Accelerating innovation in 3 growth platforms Accelerating innovation in Thermoplastic Composites Launching a Green Leading the way to sustainable ● 30 to 50% lighter than metals Hydrogen Platform batteries of the future ● inherently more recyclable with ● ambition to be a leading materials options
Slide 19: Key figures
Key figures Underlying, in € million Q1 2021 Q1 2020 % yoy Net sales 2,373 2,474 -4.1% EBITDA 583 569 +2.5% EBITDA margin 24.6% 23.0% +1.6pp EBIT 382 371 +2.9% Net financial charges -63 -68 +8.4% Income tax expenses -71 -76 +6.9% Tax rate 24% 26% -2.8pp Profit / (loss) attributable to Solvay shareholde
Slide 20: Segment review
Segment review Underlying, in € million Q1 2021 Q1 2020 % yoy % organic Net sales 2,373 2,474 -4.1% +1.9% Materials 689 789 -12.7% -7.5% Specialty Polymers 511 481 +6.3% +10.0% Composite Materials 178 308 -42.3% -36.6% Chemicals 791 800 -1.2% +6.1% Soda Ash & Derivatives 367 390 -5.9% -3.0% Peroxide
Slide 21: Strengthening our balance sheet
Strengthening our balance sheet Significant reduction in net debt and provisions Net debt, end of 2020 Provisions, end of 2020 Decreased by €1.2 billion in 2020 driven by: Provisions decreased by €623 million mainly due to: ● the closing of the Polyamides sale (€1.3 billion proceeds) ● €552 million v
Slide 22: Balanced maturities
Balanced maturities Deleveraging and reduced of cost of debt Financial debt [1] in million € and $ Period December 31, 2020 March 31, 2021 Variation over the period Face value Avg. maturity Avg. cost Face value Avg. maturity Avg. cost Face value Avg. maturity Avg. cost EUR Bonds 1,850 5.5 1.56% 1,85
Slide 23: 2021 Financial Considerations
2021 Financial Considerations Full-year 2021 vs 2020 ● Sales: ~ €-420 million Scope & forex impact ● EBITDA: ~ €-120 million (currency impact mainly in H1, scope impact mainly in H2) ● FCF: €-50m ● Provision: ~ €150 million (vs €122 million in 2020) in Q1 2021 Restructuring costs ● Cash: ~ €150 mill
Slide 24: Why invest?
Why invest? We aim to reshape the global Future growth potential Customer partnerships chemical industry by delivering fuelled by megatrends drive innovation solutions that meet the world’s sustainability challenges and provide critical solutions in fast-growth markets. Global scale, diversity of We
Slide 25: Thank you.
Thank you. Investor Relations Shareholders services investor.relations@solvay.com shareholders@solvay.com Rue de Ransbeek, 310 Rue des Champs Elysées, 43 1120 Brussels, Belgium 1050 Brussels, Belgium Follow us on solvay.com