Solvay Sa · EURONEXT:SOLB
Solvay Sa — Syensqo — Investor Day (November 2023)
98 slides from Solvay Sa's investor day presentation, Nov 13, 2023
Slide 1: Capital Markets Day
Capital Markets Day 13 November 2023
Slide 2: Important legal information
Important legal information This presentation is an advertisement relating to the intention of Syensqo SA/NV (“Syensqo” or the “Company”) to proceed with the listing and admission of its shares to trading on the regulated markets of Euronext in Brussels and Paris (the “Admission”) in the context of
Slide 3: Key risk factors for consideration
Key risk factors for consideration The following is a selection of the key risks that relate to the Company’s industry and business, operations and financial condition, based on the probability of their occurrence and the expected magnitude of their negative impact. In making this selection, the Com
Slide 4: Cautionary statements concerning forward-looking statements
Cautionary statements concerning forward-looking statements Certain statements contained herein may be forward-looking statements including, but not limited to, the statements about the Partial Demerger, as well as other statements that are predictions of or indicate plans, strategies, goals, future
Slide 5: Financial information included in this presentation
Financial information included in this presentation The financial information for the years 2020, 2021 and 2022 and for the six-month period ended June 30, 2023 has been derived from the combined financial statements of SpecialtyCo (comprising the Solvay business units being transferred to Syensqo a
Slide 6: Indicative agenda
Indicative agenda PM Presentation and Q&A PM Innovation showcase PM Reception walking dinner PM Conclusion of the day 6
Slide 7: Table of contents
Table of contents Vision, Innovation Business Profile & & Growth Segments Strategy Platforms Materials CEO CTIO Consumer & Resources Financials Closing & Outlook Remarks CFO /Q&A 7
Slide 8: Vision
Vision Ilham Kadri Incoming Chief Executive Officer 8
Slide 9: A New Chapter… Our Ambition
A New Chapter… Our Ambition We are explorers creating breakthroughs that advance humanity Be THE prime innovation partner Grow ~2X market Advancing Humanity Deliver superior returns 9
Slide 10: Value creation accelerated by the separation
Value creation accelerated by the separation Resource Growth Innovation allocation Fast growing markets Intensified R&I Investments for sustainable growth Customer obsessed Shorter time to market Digitalization Portfolio upgrade Strategic investments Improving returns 10
Slide 11: Compelling Investment Thesis
Compelling Investment Thesis Superior growth Unmatched portfolio powered by with leading market megatrends and positions innovation Best-in-class Customer-obsessed, margins entrepreneurial team 11
Slide 12: Executive Leadership
Executive Leadership Christopher Hervé Joelle Marc Frank Mark Davis Tiberghien Boxus Chollet Bolata Rollinger Chief Finance Officer Chief Operations Officer Chief People Officer Chief Strategy Officer Chief Information Officer General Counsel Ilham Kadri Chief Executive Officer Peter Michael Rodrigo M
Slide 13: Refreshed and diverse board
Refreshed and diverse 10 60% 60% 7 Directors Independent Women Nationalities Experience in governance, finance, industry, innovation, sustainability and talent management 13
Slide 14: Profile
Profile 14
Slide 15: Top-tier specialty player
Top-tier specialty player ~ 13,200 62 12 Employees Industrial Major R&I sites centers €7.9bn €1.9bn 23.6% Net sales Underlying Underlying EBITDA EBITDA margin 2022 Syensqo audited combined financial statements 15 FTE figures as of March 31st 2023
Slide 16: Global and close to our customers
Global and close to our customers EUROPE 23% 14 industrial sites of net sales AMERICAS 14 industrial sites 41% ASIA-PACIFIC* 5 of net sales major R&I centers 36% of net sales 36 industrial sites 12 industrial sites 4 major R&I centers 3 major R&I centers Source: internal analysis *includes Middle-Ea
Slide 17: Ideally placed to leverage disruptive trends
Ideally placed to leverage disruptive trends Advanced Resource Improving Sustainable Electrification Lightweighting Connectivity Efficiency Quality of Life Sourcing Leader in specialty Mining reagents Leader in World leader for Broadest portfolio Advanced materials for and solvents to hemodialysis g
Slide 18: Leadership in growth markets
Leadership in growth markets Materials 8% Electronics Consumers & Resources Aerospace ~12% 7% Building & others Automotive ~16% TOP 3 % of 2022 Syensqo’s 13% Agro, Feed & Food Market position* net sales 14% Consumer Goods 2 Industrial Applications 1 15% 15% Resources & Environment Source: Management
Slide 19: Improving quality of life… every day
Improving quality of life… every day >85% ~45% >30% >50% ~80% ~25% Aircraft1 Electric Corn seed Dialyzers for Blister packs Shampoos vehicles bags kidney failure for medicines Rely on Syensqo-enabled solutions Source: Solvay internal analysis 19 1 Includes commercial, defense and private jets, helic
Slide 20: Two complementary specialty businesses
Two complementary specialty businesses COMMON APPROACHES Customer Solution Differentiated obsessed providers technology platforms MATERIALS DISTINCT PROFILES CONSUMERS & RESOURCES Longer product life cycle Rapid innovation cycle Higher capital intensity Lower capital intensity Best-in-class margins
Slide 21: Best-in-class team driving growth
Best-in-class team driving growth CUSTOMER OBSESSED ~13,200 ~25% FTEs customer-facing ENGAGED 1 in 4 12 yr. (1) Employees are investors Avg. tenure 24% 21% 112 DIVERSE Women in the Women in leadership organization positions Nationalities Source: Solvay internal analysis 21 (1) 3,800/13,200 employees
Slide 22: Strategy
22 strategy a, = = SVENSQO as
Slide 23: A sharper focus and intensity
A sharper focus and intensity Growth Innovation Sustainable Capital Engine Leadership Solutions Discipline EXTEND PROPEL EXPAND DELIVER Market leading Product Share of sales from Strengthening ROCE positions development to sustainable over the long-term new heights solutions 23
Slide 24: A sharper focus and intensity
A sharper focus and intensity Growth Innovation Sustainable Capital Engine Leadership Solutions Discipline EXTEND PROPEL EXPAND DELIVER Market leading Product Share of sales from Strengthening ROCE positions development to sustainable over the long-term new heights solutions 24
Slide 25: Leader in Materials, Consumers & Resources
Leader in Materials, Consumers & Resources 1 1 2 SPECIALTY POLYMERS MATERIALS FOR ELECTRIFICATION MATERIALS FOR CIVIL & LIGHTWEIGHTING FOR DEFENSE AEROSPACE MATERIALS 1 1 2 BIOCIDES SPECIALTY REAGENTS FOR FOR WATER SURFACTANTS MINING RECYCLING AND POLYMERS CONSUMER & RESOURCES 25
Slide 26: Technology shifts and megatrends bring significant opportunities across markets
Technology shifts and megatrends bring significant opportunities across markets 10-20% 5-10% 2-5% Market Auto - EV Healthcare Electronics Aero Agro Mining Home & and hybrids Personal Care Trend/ Technology shift Electrification Aging population Miniaturization Lightweighting Sustainable Energy Natur
Slide 27: Extend market leadership
Extend market leadership Accelerate ~25% 45 Sharing value creation with Time-to- of workforce Application customers market customer labs facing Invest ~ 25% of generated cash allocated for Growth in capacity and • Capacity expansion capabilities • Growth Platforms € 27
Slide 28: Investing for growth
Investing for growth >€500mn Run-rate EBITDA at maturity Battery Sulfones Mining Green solvents Europe & US US & India US Europe 28
Slide 29: A sharper focus and intensity
A sharper focus and intensity Growth Innovation Sustainable Capital Engine Leadership Solutions Discipline EXTEND PROPEL EXPAND DELIVER Market leading Product Share of sales from Strengthening ROCE positions development to sustainable over the long-term new heights solutions 29
Slide 30: Growth protected by IP and know-how
Growth protected by IP and know-how 15% # Patents in force workforce in R&I 1000 817 796 20% 750 Vitality Index 1 500 >1,800 Patent 218 families of 250 which >600 filed less than 5 years 0 ago Materials Consumers Growth Platforms (1) Sales from products <5 year/Sales. 2022 figures 30 Note: Patent nu
Slide 31: Accelerating R&I success
Accelerating R&I success R&I portfolio Sales Potential in 2028, €bn Collaborations Materials Consumers & Resources Platforms with leading institutions and biotech start ups €3.5bn Reinforcement Yearly R&I spend on sales, % 1 of capabilities and application 5% labs 3.8% ~2.8% Hiring top talents in mo
Slide 32: Blockbuster projects beyond 2028
Blockbuster projects beyond 2028 MATURITY LEVEL Sulfides for Advanced LiFSI & Aquivion for solid state Materials for Energain for H2 production batteries H2 storage Li-ion batteries & conversion New inorganic New thermoplastic Li-Salts and New ionomer materials for conductors for solid solutions for
Slide 33: A sharper focus and intensity
A sharper focus and intensity Growth Innovation Sustainable Capital Engine Leadership Solutions Discipline EXTEND PROPEL EXPAND DELIVER Market leading Product Share of sales from Strengthening ROCE positions development to sustainable over the long-term new heights solutions 33
Slide 34: One Planet fortifies GROWTH
One Planet fortifies GROWTH CLIMATE GROWTH BETTER LIFE Carbon Neutral Sustainable Solutions driven Safety RIIR(1) Scope 1&2 by 2040 by Circularity Aim for zero Gender parity(3) -40% Scope 1&2(2) 18% of Circular sales in 10 years -23% Scope 3 by 2030(2) by 2030(2) Living wage To 100% of workforce by
Slide 35: We make customers more sustainable
We make Winner of 2022 customers Catalyst for Critical enabler Suppliers more lightweighting of electrification Partnership for the Environment sustainable Up to 20% lower fuel 100 kT of CO2 consumption and CO2 reduction per day (1) emissions in aviation Recognized for remarkable creativity in imple
Slide 36: Accelerating the energy transition
Accelerating the energy transition 2 sites (NJ) 2020, 2024 1 site (IN) 1 site (DE) 2022 20 sites 2022 (East Coast) 2021 1 site (BE) 2022 8 sites (TX, LA) 2021 1 site (DE) Renewable Energy 2023 Solar, wind, biomass, biogas 1 site (CA) 2023 2 sites (FR) 7 sites (CN) 2023 2019, 2022 1 site (FR) 2020 Pr
Slide 37: A sharper focus and intensity
A sharper focus and intensity Growth Innovation Sustainable Capital Engine Leadership Solutions Discipline EXTEND PROPEL EXPAND DELIVER Market leading Product Share of sales from Strengthening ROCE positions development to sustainable over the long-term new heights solutions 37
Slide 38: Cash priorities aligned to growth
Cash priorities aligned to growth >€7bn Levered pre-CAPEX cash flow Indicative over 2024-28 Maintenance, leasing Sustenance CAPEX ~30% One Planet Digital transformation New capacities Fueling growth and Growth CAPEX ~25% Platforms value creation for all stakeholders Shareholders returns, Further ~45
Slide 39: Targets
2028 Targets Organic Sales Growth 5 to 7% Underlying EBITDA Margin (%) Mid-20s ROCE (%) Mid-teens Capital Allocation prioritizes growth Strong Investment Grade credit rating 39
Slide 40: Key Takeaways
Key Takeaways Extension of Innovation capital Disciplined leadership through investment in to accelerate differentiation and allocation to high-growth markets time to market accelerate value creation 40
Slide 41: Innovation and Growth Platforms
Innovation and Growth Platforms Mike Finelli Chief Technology and Innovation Officer 41
Slide 42: Accelerating growth through Platforms
Accelerating Battery Green growth Materials Hydrogen through Platforms >€10bn market opportunity 1 by 2030 Contributes 22% Renewable to total R&I effort Materials & Thermoplastics Biotechnology Composites 42 (1)Addressable market for Syensqo by 2030
Slide 43: Electrifying mobility
Electrifying mobility Li-ION BATTERIES SOLID STATE BATTERIES 2015 2040s 2028 Generation 2 Generation 3 Generation 4 150 - 180 180 - 320 300 - 500 Wh/kg Wh/kg Wh/kg Leading supplier of PVDF for cathode binders New inorganic conductors for solid state batteries Electrolyte & Ingredient solutions (Ener
Slide 44: Enabling carbon neutrality with Green Hydrogen
Enabling carbon neutrality with Green Hydrogen H2 Production H2 Transportation & Storage H2 Consumption 1 (PEM & Alkaline Electrolyzers) (Composite tanks) (Fuel cells) Ionomer solutions & specialty Polymers for liner & TPC towpreg Ionomer solutions & specialty polymers polymers for frames and seals
Slide 45: Supporting circularity with Biotechnology
Supporting circularity with Biotechnology Focus on three key areas: Transforming FEEDSTOCK into valuable molecules through Focus on the ORIGIN BIOTECHNOLOGY Increase the content of Sustainable Renewable Carbon Sugars Proteins Lignin Microbes Monomers Fatty acids (bacteria, yeasts) Polymers Focus on
Slide 46: Lighter, Faster, Stronger Thermoplastic Composites
Lighter, Faster, Stronger Thermoplastic Composites Aerospace & AAM 1 Energy Automotive Higher Rates Decarbonization & Higher Performance Lightweighting & Performance Scaling manufacturing processes Design flexibility and more efficient Higher electric motor efficiency and solutions power density €1b
Slide 47: Key Takeaways
Key Takeaways Market Innovation aligned with Investment in Sustainable Application Opportunity > €10bn by 2030 Megatrends Labs & Pilots to improve time to market 47
Slide 48: Materials
Materials Peter Browning President of Specialty Polymers 48
Slide 49: Materials business delivers above market growth
Materials business delivers above market growth ~30% ~20% ~20% ~30% Automotive Aerospace & Electronics & Other 1 Defense Industrial Materials Net sales Historical sales growth (‘18-’22) EBITDA Margin ~€4.1bn ~7.5% 31.7% FY 2022 Source: Management Reports Note: % of net sales of Syensqo Materials bus
Slide 50: Largest tool box to solve our customers' needs
Largest tool box to solve our customers' needs High Performance Polymers High Performance Composites 3D Thermoplastic Carbon Thermoset Resin Space PPS PEEK PSU PVDF HPPA FKM PFPE Additive Compounding Films Adhesives comp. Fiber comp. Infusion Ablatives Mfg ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 51: Unique value proposition
Unique value proposition Unmatched Mission-critical Addressing product portfolio solutions to industry-specific address customers challenges needs We are Our customers stories solution Won Runner-Up in providers “Supplier of the “The Society of ‘Future of year” Plastics Engineers” Lightweighting’ Bo
Slide 52: Specialty Polymers
Specialty Polymers 52
Slide 53: Exceptional growth track record
Exceptional growth track record… Net Sales 2005-2022, €mn Organic growth Build the ~x portfolio ~750 ~1,500 ~3,100 ~x 2005 2014 2022 Source: Management Reports 53 Based on Syensqo 2022 audited combined financials (2022) and Solvay audited financials (2014 and 2005)
Slide 54: …spanning highly attractive end-markets
…spanning highly attractive end-markets ~35% ~35% ~30% Electronics1 Transportation2 Life Solutions3 Specialty Polymers Net sales FY 2022 ~€3.1bn Source: Management Reports 54 Note: % of net sales of Syensqo’s Materials businesses. Based on Syensqo 2022 combined audited financials; (1) Electronics an
Slide 55: Each offering strong growth opportunities
Each offering strong growth opportunities Electronics ~35% Transportation ~35% ~30% Life Solutions Historical CAGR (‘18-’22) Future CAGR (‘22-’28) 60% 55% 15 55 15 20% 10% 10% 10 10 6% 6% 6% 6% 5 4% 5 2% 5 0% 0 0 0 -2% Semiconductors Smart Devices -5 Auto EV Medical Devices Water filtration Hypercon
Slide 56: Unique capabilities to create value for customers
Unique capabilities Full suite of extensive solutions to create value SURFACE LIGHTWEIGHTING CHEMICAL for customers PROPERTIES BROAD RANGE OF ELECTRICAL RESISTANCE HEAT TEMPERATURE CONDUCTIVITY RESISTANCE Broadest portfolio of high-performance polymers Across fast-growing end-markets Specialty Polym
Slide 57: Electronics | Driving Next Generation
Electronics | Driving Next Generation Semiconductor Technologies Enable smaller chips & reduce Portfolio well positioned to deliver growth fab waste and downtime €~300mn Tier 1 supplier for OEMs 60% Consu- ‘One-stop-shop’ portfolio mables 2 Sales FY22 40% Strong, proven innovation engine Building +6
Slide 58: Electronics | Strategic relationship with the world's largest chip supplier
Electronics | Strategic relationship with the world’s largest chip supplier New Engagement Model New engagement model partnering directly with TSMC to: Engaged to qualify and specify new solutions to global address yield, performance strategic and sustainability partner innovative solution Exploring
Slide 59: Automotive | Driving the transition to electrical vehicles
Automotive | Driving the transition to electrical vehicles Uniquely positioned to benefit from electrification ~€1bn sales1 in Automotive E-motor Battery Module ~35% Critical materials in Module, pack, coolant magnet wire and slot system, and run-away insulation, busbars, protection Charging rotor s
Slide 60: Automotive | Examples of high performance solutions
Automotive | Examples of high performance solutions e-Motor Battery Casing Magnet Wire Insulation 25% motor 25% vs aluminum weight reduction 40% vs steel 9% horsepower Weight reduction 3% higher torque Protection against thermal run-away ELECTRIC POWERTRAIN ELECTRIC POWERTRAIN • 1st mover and leader
Slide 61: Automotive | Long term relationship with the world's largest Tier-1
Automotive | Long term relationship with the world’s largest Tier-1 Based on a deep partnership New applications Driving the and customer intimacy driving current sales European Chips Act together Aligned around a common Fuel Cells Historical and future strategy of innovation and business ePumps, eM
Slide 62: Healthcare | Supporting the hemodialysis industry to save lives
Healthcare | Supporting the hemodialysis industry to save lives Facilitate easier sterilisation and improved patient Leadership position in a growing market outcomes Market Current Market €~400mn growth1 market share 2 patients out of 3 in NAM (’18-’22) share trend & EU use our material Sales FY22 2
Slide 63: Potential to reach €5bn in sales by 2030
Potential to reach €5bn in sales by 2030 2005-2022 net sales & 2030 net sales projection (€bn) Accelerate organic growth Organic growth ~x Build ~5 bn the ~3.1 bn portfolio ~0.75 bn ~1.5 bn ~x 2005 2014 2022 2030 Source: Internal Analysis 63 Based on Syensqo 2022 audited combined financials and Solv
Slide 64: Composite Materials
Composite Materials Rodrigo Elizondo President of Composite Materials 64
Slide 65: Serving fast growing and high-barrier market
Serving fast growing and high-barrier market AEROSPACE & PREMIUM DEFENSE NICHE ~60% ~35% ~5% Commercial Aircraft Defense Automotive Space & Launch Composite Materials Net sales FY 2022 ~€1bn Source: Management Reports 65 Note: Percentages shown refer to percentage of Net sales of Solvay’s Composite
Slide 66: Enhancing performance all over the aircraft
Enhancing performance all over the aircraft OUR PRODUCTS Secondary structures Thermoset composites Primary structures Thermoplastic composites Adhesives & surfacing Specialty Engines polymers Interiors & Galleys 66
Slide 67: A key enabler for sustainable aviation
30% 5 Improved Superior manufacturing Performance times aerodynamics & design improvement stronger flexibility vs aluminum vs aluminum A key enabler Aerodynamic for sustainable Lightweighting Improvements aviation Up to Lower fuel 25% consumption 67
Slide 68: Build rates set for growth
Build rates set for growth Commercial narrow body Long-term high single digit growth Customer order book visibility worth ~€5bn (6-7% p.a.) BUILD RATES (# PLANES) Projections 2,500 737 MAX COVID Commercial narrow body Commercial wide body 2,000 Commercial wide body Defense Long-term low single digit
Slide 69: Advanced material penetration continue to increase
Advanced material penetration continue to increase Future Percentage of composites Advanced Air Mobility >85 % Significant used in aircrafts Inflection Points F-35 787 A350 ∼50% Next-Gen Single Aisle A220 777x ∼40% increase in use of composites at a higher manufacturing rate by 2035 F18 A320 777 A33
Slide 70: Defense market poised for robust future growth
Defense market poised for robust future growth Syensqo present across all Defense segments Military Fixed Rotorcraft Space & Launch UAV Wing Market to grow at 5-8% CAGR1 in the next 5 years driven by new programs: US 6th Generation Fighter, FCAS2 & GCAP3, UAVs4, FVL5 F-35 - The largest Global Defens
Slide 71: Pioneer in developing Advanced Air Mobility
Pioneer in developing Advanced Concentration of Air Mobility population in urban areas Specific product portfolio for Urban mobility applications Numerous ongoing collaborations and partnerships MULTIPLE RELATIONSHIPS ESTABLISHED Need for sustainable transportation 2020 2022 2023 2023 solutions Mobi
Slide 72: Outstanding growth potential
Outstanding growth potential Estimated carbon materials market size (€bn, 2022-2050e) Automotive x Energy Transition x Aerospace & Defense 2022 2035e 2050e 72 Source: Internal analysis
Slide 73: Key Takeaways
Key Takeaways growth Exceptional Advanced solutions to Winning due to track record lower CO2 enable best-in-class with more to come emissions capabilities and product portfolio 73
Slide 74: Consumer & Resources
Consumer & Resources Mike Radossich President of Consumer & Resources 74
Slide 75: Broad portfolio of common technology platforms to serve attractive end-markets
Broad portfolio of common technology platforms to serve attractive end-markets ~23% ~16% ~25% ~9% ~27% Agro, Feed & Food Home & Personal Care Resources & Environment Building & Construction Other Specialty incl. Mining incl. Coatings Chemicals 1 Focus for today’s highlights Consumer Net sales Histor
Slide 76: Consumer & Resources will fuel sustainable growth
Consumer & Resources will fuel sustainable growth Consumer Driven by strong & Resources secular & sustainability trends set to grow at Leadership positions across market segments Disruptive innovation 2X Differentiated technologies and formulation capabilities Partnering with customers for tailored
Slide 77: Leadership positions across markets
Leadership positions across markets Food, Flavor Agro HPC Mining Coatings & Fragrances Crop protection Natural hair Mineral Binders Synthetic vanillin care conditioning processing polymers Green solvents Mild cleansing Metal extraction Performance EU Natural vanillin 1 solutions additives 77 Note: L
Slide 78: Agricultural Specialties
15% of sales Agricultural Leader in crop protection & seed Business set to grow 2-3x market Specialties care solutions Trends & customer Accelerating the transition to sustainable unmet needs agriculture Increasing pest Historical & future volume growth ~15-20% p.a. resistance IP-protected, low-toxi
Slide 79: Home and Personal Care
Home and Leader in hair 16% of sales Personal care & cleansing Business set to grow 2x market Care solutions Trends & customer Addressing consumer demand for more unmet needs eco-conscious & higher-performance solutions Higher performance Specialty surfactant portfolio incl. mild sulfate-free requir
Slide 80: Mining Chemicals
15% of sales Mining Leader in metal & mineral mining Business set to grow 2x market Chemicals solutions Accelerating electrification, energy transition Trends & customer and hyperconnectivity through Innovative unmet needs reagent-based solutions Need for new mines, Unique AEROPHINE® franchise (CAGR
Slide 81: Key Takeaways
Key Takeaways Key markets are Well-positioned to Further upgrade accelerating build on our leadership & future-proof driven by positions through strong our portfolio through sustainability trends customer intimacy innovation, cost & efficiency & performance and proven business model gains, and M&A 8
Slide 82: Financials & Outlook
Financials & Outlook Christopher Davis Incoming Chief Financial Officer 82
Slide 83: Strong track record of improving profitability & returns
Strong track record of improving profitability & returns Underlying EBITDA (€mn) & Margin (%) Return on Capital Employed (%) 23.6% 13.7% 21.7% ~11% % 19.5 1,863 ~1,600- 1,650* 8.2% 1,282 1,027 4.1% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2019 2020 2021 2022 2023e Source: Syensqo Internal
Slide 84: Targets
2028 Targets Organic Sales Growth 5 to 7% Underlying EBITDA Margin (%) Mid-20s ROCE (%) Mid-teens Capital Allocation prioritizes growth Strong Investment Grade credit rating 84
Slide 85: Superior growth delivered by strategic investments and volume recovery
Superior growth delivered by strategic investments and volume recovery Net Sales (€mn) 5 to 7% average annual organic growth 2023e Volume Platforms Value 2028 Growth Pricing Increased volume Increased volume Value Pricing from existing programs from new programs driven mix & pricing by major investm
Slide 86: Superior EBITDA margin expansion delivered by strategic investments and innovation
Superior EBITDA margin expansion delivered by strategic investments and innovation EBITDA Margin (%) Mid-20s ~23% 2023e Sales Operating R&I 2028 growth leverage investment Sales growth Strong operating leverage Higher R&I investment Through volume & pricing Fixed costs dilution, cost saving to drive
Slide 87: Returns boosted by growth and efficiency gains
Returns boosted by growth and efficiency gains Return on Capital Employed (ROCE in %) Mid-teens Around 11% 2023e Margin Efficiency New 2028 Expansion Gains assets Margin expansion Asset efficiency gains Investment in highly profitable to mid-20s and value-creating projects with IRR >15% 87 Source: S
Slide 88: Strong cash generation to fuel growth
Strong cash generation to fuel growth >€7bn Levered pre-CAPEX cash flow Indicative over 2024-28 Maintenance, leasing Sustenance CAPEX ~30% One Planet Digital transformation New capacities Fueling growth and Growth CAPEX ~25% Platforms value creation for all stakeholders Shareholders returns, Further
Slide 89: Strong Liquidity Profile
Strong Liquidity Profile In €bn Expected rating Baa1 / BBB+ Expected outlook stable /stable <20% Underlying Gross Financial Debt ~2.8 Gearing €2.5-3bn Underlying Net ~1.6 Financial Debt ~1x Net pension Leverage ~0.4 liabilities Environmental Cash and undrawn facilities liabilities ~0.5 Solid balance
Slide 90: Disciplined Capital Allocation framework
Disciplined Capital Allocation framework Source of net Working capital Strong cash generation Asset efficiency operating cash efficiency Maintain & optimize operations Maintain strong investment grade credit rating Retain cash for flexibility / optionality through the cycle Dividend policy that Use
Slide 91: Closing remarks
Closing remarks 91
Slide 92: SYENS.BR
SYENS.BR DECEMBER 11th 2023 92
Slide 93: Q&A
Q&A 93
Slide 94: Disclaimer
Disclaimer This presentation is for informational purposes only and is not intended to, and does not, constitute an offer or invitation to sell or solicitation of an offer to subscribe for or buy, or an invitation to purchase or subscribe for, any securities of the Company or Solvay, any part of the
Slide 95: Appendix
Appendix 95 a, 2S = as SYENSQO
Slide 96: Compelling Investment Thesis
Compelling Investment Thesis Superior growth Unmatched portfolio powered by with leading market megatrends and positions innovation Best-in-class Customer-obsessed, margins entrepreneurial team 96
Slide 97: Independent Board representing all stakeholders
Independent Board representing all stakeholders Rosemary Thorne Chairwoman, Chair of Finance Committee and Independent Director Ilham Kadri Francoise de Viron Matti Lievonen Heike Van de Kerkhof Julian Waldron CEO Chair of ESG Committee, Vice Chair and Chair of Remuneration Chair of Nomination Chair
Slide 98: Glossary
Glossary ✓ Capital expenditure (capex): Cash paid for the acquisition of tangible and intangible assets presented in cash flows from investing activities, and cash paid on the lease liabilities (excluding interests paid), presented in cash flows from financing activities, excluding acquisition of as