Syensqo SA/NV · EURONEXT:SYENS
Syensqo SA/NV — Aerospace Webinar (February 2023)
30 slides from Syensqo SA/NV's conference presentation, Feb 28, 2023
Slide 1: Aerospace Webinar, February 28, 2023
& February 28, 2023 Disclaimer: this presentation layout was updated to Syensqo’s corporate branding, but the content is unchanged versus the initial presentation
Slide 2: Our highly attractive Materials business is part of Syensqo
Our highly attractive Materials business is part of Syensqo Syensqo Consumer Materials ~€7.8bn & Resources FY2022 2 Aerospace & Defense market
Slide 3: Aerospace & Defense represents a key market
Aerospace & Defense represents a key market 29% 22% 22% 12% Healthcare & Consumer % of net sales Automotive Aerospace & Defense Electronics & Industrial Materials Net Sales Organic Sales Growth EBITDA margin Materials (‘22-’26F) FY 2022 ~€4.1bn ~10% >30% 3 Note: Percentages shown refer to percentage
Slide 4: We are an advanced material provider to OEMs and suppliers
We are an advanced material provider to OEMs and suppliers Design, manufacture & Provide advanced materials Provide finished parts & assemble aircrafts to produce parts systems to OEMs ADVANCED OEMs Tier 3, 2 & 1 suppliers MATERIAL SUPPLIERS Syensqo is 1 of 3 qualified carbon fiber composites suppli
Slide 5: Advanced materials solve the industry's critical challenges
ADVANCED 30% weight reduction vs 5 times stronger vs Improved aerodynamics Superior manufacturing MATERIALS aluminum aluminum & & design superior flexibility properties1 SOLVE Up to the industry’s most critical performance 25% and sustainability challenges Increased Reduced fuel efficiency & greenho
Slide 6: Aerospace & Defense is a key market within our Materials business
Aerospace & Defense is a key market within our Materials business ~60% ~30% ~10% Commercial aviation Defense Space & Launch % of net sales Narrow and wide body, engines, Fixed wing defense, Space, missiles & business jets, civil rotorcraft military rotorcraft launch systems Aerospace & Defense Aeros
Slide 7: Aerospace & Defense key takeaways
Aerospace & Defense key takeaways Double digit market Attractive business Actively pursuing growth outlook, with broad portfolio next-gen solutions supported by post and high barriers to leveraging our COVID rebound entry affording stable unique innovation growth capabilities 7 Aerospace & Defense m
Slide 8: Double digit market growth outlook, supported by post COVID rebound
Double digit market growth outlook, supported by post COVID rebound 8 Aerospace & Defense market
Slide 9: Attractive market growth outlook
Attractive market growth outlook Aero industry recovery is underway following a period of decline COMPOSITE ~ 5-7% p.a. ~ -11-13% p.a. ~ 9-11% p.a. AEROSTRUCTURES MARKET VALUE (INDEXED TO 2016) 2016 2019 2022 2026F Market growth driven Decrease due to Increasing build rates, Key market by higher bui
Slide 10: Build rates
Build rates Commercial narrow body Long-term high single digit growth Strong outlook, supported by post COVID rebound and 6-7% p.a. mainly driven by narrow-body airplanes Projections 2,500 BUILD RATES BY SEGMENT (IN # PLANES) 737 MAX supply issue COVID Commercial narrow body Commercial wide body Com
Slide 11: Advanced material penetration
Advanced material penetration Continued increase across airplane programs over time PERCENTAGE OF COMPOSITES USED IN AIRCRAFTS ~50% F-35 787 A350 % ~40 ~25% A220 777x F18 A320 777 A330 V22 ~10 % Commercial Programs F15 767 F16 737 Military Programs % Composites used (% of aircraft weight) 1960s-1970
Slide 12: Our technology is integral to many parts of an airplane
Our technology is integral to many parts of an airplane OUR PRODUCTS Primary structures (e.g., empennage, fuselage) Secondary structures TSC (e.g., engine nacelles, fairings) Thermoset composites Bonding TPC Thermoplastic composites ADH Adhesives & surfacing Surface coatings SpP Specialty polymers I
Slide 13: Attractive business with broad portfolio and high barriers to entry
Attractive business with broad portfolio and high barriers to entry affording stable growth 13 Aerospace & Defense market
Slide 14: Syensqo maintains leadership in this attractive market
Syensqo maintains leadership in this attractive market with double-digit growth expected in the mid-term Market Market Market 11% p.a. 5-7% p.a. -9% p.a. -11-13% p.a. ∼10% p.a. 9-11% p.a. Syensqo A&D Net Sales (€ Bn) 1.6 1.4 1.3 1.2 1.2 1.0 0.9 0.9 0.8 0.6 0.4 0.2 2016 2019 2022E 2026F Protected by
Slide 15: Commercial Aviation: specified in all main airplane programs
Commercial Aviation Syensqo is specified in all main airplane programs KEY EXAMPLES SPECIFIED IN KEY AIRPLANE & ENGINE PROGRAMS Solvay value Key airplane programs Order backlog (Dec ‘22) per shipset 777x ~440 >$1m C919 ~100 Major supplier of Primary and 787 ~575 primary & secondary secondary structu
Slide 16: Defense: long-standing partnerships with key OEMs
Defense Long-standing partnerships with key OEMs EXAMPLE PRIMARY SUPPLIER FOR F-35 LEADING POSITION IN THE U.S. DEFENSE MARKET Leading position with strong heritage and over 50 years of industry experience Unique portfolio of Supplying hundreds of products across all main >50 defense programs (e.g.,
Slide 17: Strong customer co-development
Strong customer co-development across the entire lifecycle of the aircraft programs Years Decades Design Prototyping Test & Certification Industrialization Operating life Virtual engineering Part manufacturing Material & part testing Continuous support of the airplane program SYENSQO INNOVATION CENTE
Slide 18: Agile and evolving footprint
Agile and evolving footprint STRONG AEROSPACE & DEFENSE FOOTPRINT* AGILE & EVOLVING FOOTPRINT CLOSE TO OUR MAIN CUSTOMERS Footprint optimization program launched before COVID AMERICAS EMEA ASIA Accelerated through COVID (3 sites closed) to adapt cost structure in line with market needs (annual cost
Slide 19: Actively pursuing next-gen solutions leveraging our unique innovation capabilities
Actively pursuing next-gen solutions leveraging our unique innovation capabilities 19 Aerospace & Defense market
Slide 20: Deep industry expertise and understanding of our customers' needs
Deep industry expertise and understanding of our customers’ needs Industrialization Greener New and more and Productivity transportation demanding applications Reduction of emissions Need for faster Focus on primary and increasing and lower-cost structures and new importance production market segmen
Slide 21: Innovation themes
Enabling the next generation of aircrafts Resin Infusion Bonding technology Multi-functionality Resin infusion technologies Thermoplastic composites Innovation themes Carbon fiber based composites Out-Of-Autoclave technologies Adhesives & Sealants Fiberglass based composites Thermoset prepregs R&D t
Slide 22: Driving innovation for the future of Commercial Aviation
KEY MARKET DRIVERS Driving innovation for the future of Commercial Aviation Lighter weight and lower Developing the innovations required for next-generation aircraft with breadth emissions and depth of technical expertise and a legacy of innovation Continue to drive adoption of composite Meet custom
Slide 23: Actively accelerating technology for Space market
KEY MARKET DRIVERS Actively accelerating technology for Space market Commercialization Solution provider for innovative and Innovation via new manufacturing high performance lightweight techniques, to lower cost of launch of space materials for space applications vehicles (e.g., Out-Of-Autoclave, (e
Slide 24: Pioneer in developing Advanced Air Mobility market
KEY MARKET DRIVERS Pioneer in developing Advanced Air Mobility market Concentration of Ideal material supplier for AAM with a comprehensive portfolio and strong population in urban areas legacy, able to assist with technical challenges through all stages of the process Need for sustainable Scale AAM
Slide 25: Thermoplastic Composites Platform
Thermoplastic Composites Platform Potential to reinvent how to produce and recycle composite resins Up to Up to 40% Recyclability 5x faster 30-50% more & manufacturing1 reduced weight2 cost-effective2 circularity Addressable market by 2035 >€1bn3, thereof ~€400m Aero&Def Note: (1) Compared to thermo
Slide 26: Ongoing TPC adoption across industries drives the experience curve
Ongoing TPC adoption across industries drives the experience curve 1980 2020 2030+ Electronics & Other Automotive (e.g., carbon wrapped eMotors) Expansion to Energy transition (e.g., onshore applications, hydrogen tanks) Translation of capabilities to Energy (e.g., offshore risers, flexible pipes) E
Slide 27: High-end composite materials market expected to grow 4x by 2035
High-end composite materials market expected to grow 4x by 2035, and >10x by 2050 Automotive Estimated carbon materials market size (€bn, 2022-2050F) X 10 Energy X 4 A&D 2022 2035F 2050F 27 Aerospace & Defense market
Slide 28: Recap: Aerospace & Defense key takeaways
Recap: Aerospace & Defense key takeaways Attractive business Actively pursuing Double digit market with broad portfolio next-gen solutions growth outlook, and high barriers to leveraging our supported by post entry affording stable unique innovation COVID rebound growth capabilities ■ Growth driven
Slide 29: Safe harbor
Safe harbor 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
Slide 30: Thank You
Thank You ww, SVENSQO as