Solvay Sa · EURONEXT:SOLB

Solvay Sa — Investor Day (2013)

10 slides from Solvay Sa's investor day presentation, 2013

  1. Slide 1: Silica: Growth through innovation for sustainable mobility

    Silica Tom Benner Growth through innovation for sustainable mobility

  2. Slide 2: Silica at a glance

    Net sales REBITDA Silica at a glance 2013e 2016 CAGR double € 0.4 bn digit 3 prod. sites (1 under construction) 1 prod. site 2 R&I centers 44% 27% HDS (Highly Dispersible Silica) 29% 3 prod. sites 2 R&I centers 2 prod. sites 1 R&I center 2

  3. Slide 3: Solvay is the leader in Highly Dispersible Silica (HDS) for tires

    Solvay is the leader in Highly Dispersible Silica (HDS) for tires Amorphous precipitated Silica market HDS for tire market shares Industrial Solvay Polymer reinforcement 63% 2.1 HDS Tire 0.4 mt/yr 20% Key competitors mt/yr • Evonik Feed and food • PPG Conventional Tire Toothpaste • OSC CAGR13-20 6%

  4. Slide 4: Highly Dispersible Silica (HDS) delivers value to the tire industry

    Highly Dispersible Silica (HDS) delivers value to the tire industry Excellent technical performance … … growing across a number of applications Rolling Resistance 125 In passenger car and light trucks + 25% 120 • Energy-efficient tires 110 with HDS • Winter tires 100 • Sport tires 90 Carbon-Black 80

  5. Slide 5: HDS growth drivers: Energy efficiency regulation on auto original equipment

    HDS growth drivers: Energy efficiency regulation on auto original equipment % mandated fleet CO2 reduction Energy-efficient tires 2010-2020 best positioned vs. alternatives Price [€] EU -33% 300 Engine - diesel turbo charging US -40% Engine - direct injection 200 China -37% Dual clutch transmission

  6. Slide 6: HDS growth drivers: Labeling regulation significantly impacts the tire aftermarket

    HDS growth drivers: Labeling regulation significantly impacts the tire aftermarket Tire labeling scope Countries[1] Japan Korea EU Brazil US China Rolling Resistance       Wet grip       Wear  Implementation 2012 2012 2012 2014 Draft Under legislation review Source: Roland Berger, Solva

  7. Slide 7: Performance and regulatory drivers result in strong growth for HDS

    Performance and regulatory drivers result in strong growth for HDS HDS demand Drivers for growth CAGR Energy- efficient 13-20 Tire production tire penetration Increased silica use per tire +12% +10% EMEA*   +7% NAFTA  +16% ASIA    LATAM   +23% 20% 50% 30% 2013 2016 2020 Contribution to overa

  8. Slide 8: Capacity investments to meet market growth opportunities

    Capacity investments to meet market growth opportunities HDS Total > 500kt/yr Total > 270kt/yr x2 +85kt/yr HDS Capable +72kt/yr CONVENTIONAL +72kt/yr 2009 2010 2011 2012 2013 2014 2015 2016 2017 Ongoing process improvement and innovation for greater utilization New plant Expansions in USA, New site

  9. Slide 9: Delivering value from innovation

    Delivering value from innovation New generation HDS for performance  Better rolling resistance Improved label  Improved wear Lighter or longer life tire  Better dynamic properties Increase sport handling for UHP tires Specifically engineered for performance in winter and Nordic conditions Without

  10. Slide 10: A successful growth strategy

    A successful growth strategy • Double digit growth in line REBITDA with the HDS market, driven by double energy-efficient tire demand digit CAGR CAGR • Maintain leadership in HDS for +12% tires, through capacity increases & innovation • Long-term contracts at pricing supporting appropriate return on

Solvay — Investor Day (2013) on 6ix