Solvay Sa · EURONEXT:SOLB
Solvay Sa — VFB Happening - Antwerp (March 2019)
22 slides from Solvay Sa's conference presentation, Mar 30, 2019
Slide 1: Why invest in Solvay?
asking more from chemistry® Why invest In Solvay?
Slide 2: Forenote
FORENOTE Following the announcement in September 2017 of plans to divest the Polyamide business, these have been reclassified as discontinued operations and as assets held for sale. For comparative purposes, the first quarter of the 2017 income statement has been restated. Besides IFRS accounts, Sol
Slide 3: Solvay ID
SOLVAY ID >70% >50% ~33% specialty in GDP+ in each products markets region Created by Ernest Solvay in 1863, Solvay is today all Advanced Materials Automotive & aerospace Europe Advanced Formulations Electrical & electronics North America about advanced materials and Performance Chemicals Resources
Slide 4: We commit to answering mega trends
WE COMMIT TO ANSWERING MEGA TRENDS Evolving demography Resource constraints Innovation and consumer behavior & demand for sustainability acceleration • New materials for smart cities • Global warming and climate • Information age & big data disruption • Ever more connected people • Acceleration of c
Slide 5: Giving shape to a unique portfolio
GIVING SHAPE TO A UNIQUE PORTFOLIO 50% ADVANCED MATERIALS ADVANCED FORMULATIONS PERFORMANCE CHEMICALS segment 43% of Group sales 30% of Group sales 27% of Group sales Polymer & Surface & Soda ash & Composite Liquid Peroxides technologies chemistry Electronics Healthcare Aerospace Automotive Oil & Ga
Slide 6: Because our planet requires more sustainable mobility
BECAUSE OUR PLANET REQUIRES MORE SUSTAINABLE MOBILITY Doing more with less AUTOMOTIVE AEROSPACE BATTERIES Cleaner and more Enhanced Higher performance MORE energy-efficient lightweighting & fuel and energy storage mobility efficiency Reduce impact Reduce CO2 Reduce cost LESS to environment emissions
Slide 7: We also make planes lighter & more efficient
WE ALSO MAKE PLANES LIGHTER & MORE EFFICIENT AERO 4.5% >8,000 50% 2X Annual growth Record high Weight of composites Number of aircrafts expected in passenger traffic order backlog on new aircrafts vs <15% on legacy to double in 20 years SURFACE BONDING & COATINGS MULTIFUNCTIONALITY PRIMARY STRUCTURE
Slide 8: We make cars lighter & more efficient
WE MAKE CARS LIGHTER & MORE EFFICIENT AUTO 2.4% ~30% CAGR light vehicles CAGR hybrid & plug-in production in 5 years electric vehicles in ten years STRUCTURAL & SEMI-STRUCTURAL PARTS INTERIORS THERMAL & AIR INSULATION MANAGEMENT SYSTEMS ENGINE ENERGY-EFFICIENT COMPONENTS TIRES EMISSIONS CONTROL EXTE
Slide 9: We are positioned in all auto platforms, outpacing industry growth by 3x
WE ARE POSITIONED IN ALL AUTO PLATFORMS, AUTO OUTPACING THE INDUSTRY GROWTH BY 3X [1] ICE+ (P)HEV EV Increasing loading per car [2] ~ 6kg ~ 12kg 8kg ~ Internal combustion engine Transmission Performance drives value proposal Electrical engine Battery Opportunity for composites Chassis / functional p
Slide 10: Because resource constraints require more efficient solutions
BECAUSE RESOURCE CONSTRAINTS REQUIRE MORE EFFICIENT SOLUTIONS Doing more with less MINING OIL & GAS AGRO Higher throughput Maximize cost Targeted use MORE and yield of metals performance and of ingredients for & minerals fracturing efficiency seeds & crops Reduce impact Reduce Less clean LESS to emp
Slide 11: Innovation at our core with strong connections to advance science
INNOVATION AT OUR CORE WITH STRONG CONNECTIONS TO ADVANCE SCIENCE Steering open innovation & collaboration 3.4% €352 m effort 264 patent applications R&I intensity 2,200 talents 21 R&I sites +100bp vs 2012 Ernest Solvay established first 1911 prestigious meetings of top scientists* Establishing worl
Slide 12: ...in a sustainable way
…IN A SUSTAINABLE WAY Contribute to society Among many initiatives, we Act worked with WBCSD to identify responsibly the SDGs most impacted by our industry Innovate sustainable solutions 2018 highlights 50% -1 Mt Sustainable Solutions GHG emissions absolute value > Higher volume growth on average, h
Slide 13: 2018 Achievements
2018 ACHIEVEMENTS 17 VFB Happening - Antwerp March 30, 2019
Slide 14: We delivered solid organic growth in 2018
WE DELIVERED SOLID ORGANIC GROWTH IN 2018 vs 2017 Underlying figures + 5.7% + 5.3% + 12% Organic growth Organic growth Continuing operations Net Sales EBITDA Earnings per share + 6% + 4.2% Continuing operations Free Cash Dividend Flow 18 VFB Happening - Antwerp March 30, 2019
Slide 15: Constantly focused to respect our commitments
CONSTANTLY FOCUSED TO RESPECT OUR COMMITMENTS 2016 - 2018 Delivery 2016 - 2018 -20% GHG Intensity -24% kg CO2 eq. Emissions / € EBITDA +7.5% Mid-to-high single digit EBITDA growth Underlying % yoy 40% Sustainable solutions 50% % Group Sales -10 % Accident rate -30% Acc. with medical treatment / m wo
Slide 16: While creating value for Solvay's shareholders
WHILE CREATING VALUE FOR SOLVAY’S SHAREHOLDERS Underlying EPS Free cash flow to Solvay Dividend (in €) shareholders (in €) 3.75 10.57 725 3.60 (in € m) 3.45 3.30 9.08 8.19 527 7.40 466 148 2015 PF 2016 2017 2018 2015 PF 2016 2017 2018 2015 PF 2016 2017 2018 [1] +13% CAGR +70% CAGR +4.4% CAGR 20 VFB
Slide 17: 2019 Outlook
2019 OUTLOOK EBITDA Free Cash growth Flow Underlying at constant scope and forex Modest EBITDA growth in FY 2019 [1] Solid FCF, expected to continue to Q1 broadly flat versus Q1 2018 [2] deleverage the balance sheet [1] Organic growth, excluding scope & forex conversion effects, vs 2018 pro fo
Slide 18: In 2019, we open a new chapter in Solvay's history led by a new CEO
IN 2019, WE OPEN A NEW CHAPTER IN SOLVAY’S HISTORY LED BY A NEW CEO Customer intimacy Operational Simplification excellence Ilham Kadri, CEO Excellence center Customer experience Employee Experience Since March 1, 2019 22 VFB Happening - Antwerp March 30, 2019
Slide 19: Why invest in Solvay?
WHY INVEST IN SOLVAY? Leading Advanced Innovative and Customer Solid Financial Consistent Materials and sustainable obsession Performance Shareholders Specialty Chemicals solutions to the Reward company market of the future Top-notch chemistry that Innovation towards Answers to fast-pacing One of th
Slide 20: Becoming a shareholder of Solvay
BECOMING A SHAREHOLDER OF SOLVAY HOW TO HOLD SOLVAY ORDINARY SHARES Dematerialized shares Your shares remain with your financial intermediary, who manages them Registered shares Your shares are registered directly in Solvay Register, and Benefits of opting for registered shares managed by Solvay Reg
Slide 21: Shareholders publications
SHAREHOLDERS PUBLICATIONS Dedicated to offer relevant and timely information to our shareholders Visit Solvay Shareholders’ Integrated Annual Report corner and subscribe to the Investors’ Club to receive our Shareholders’ Guide future publications Shareholders’ Letters Created in 2014, Solvay Invest
Slide 22: Investor relations
INVESTOR RELATIONS Events Geoffroy Raskin Head of Investor Relations +32 2 264 1540 geoffroy.raskin@solvay.com Laetitia Van Minnenbruggen Retail Manager +32 2 264 3025 Laetitia.vanminnenbruggen@solvay.com Latest news Shareholders service +32 2 639 6633 Laetitia.vanminnenbruggen@solvay.com 29 VFB Hap