Solvay Sa · EURONEXT:SOLB
Solvay Sa — Shareholder Meeting (May 2022)
53 slides from Solvay Sa's shareholder meeting presentation, May 10, 2022
Slide 1: Dr. Ilham Kadri, Chair of the Executive Committee & CEO
MAY 10, 2022 Dr. Ilham Kadri CHAIR OF THE EXECUTIVE COMMITTEE & CEO
Slide 2: From celebrating innovation
From celebrating INNOVATION VISIT THE CITY > Solvay City https://solvaycity.solvay.com/
Slide 3: To celebrating people
To celebrating PEOPLE WE bond PEOPLE IDEAS & ELEMENTS to reinvent PROGRESS
Slide 4: Belgium Pavilion Expo Dubai 2020
Belgium Pavilion Expo Dubai 2020 Photo by Mahmoud Khaled/Expo 2020 Dubai
Slide 5: Slide 5
Slide 6: Progress Beyond Air Taxi, Vertical Aerospace
Progress Beyond Air Taxi Vertical Aerospace
Slide 7: Humankind overcomes hardship and so does Solvay
Humankind overcomes hardship and so does Solvay
Slide 8: G.R.O.W. strategy for a stronger Solvay
G.R.O.W. strategy for a stronger W Win Solvay Optimize returns O Solutions R Deliver Resilient cash Chemicals G Accelerate Growth Materials Launched in 2019
Slide 9: A radical transformation in just 3 years
A radical transformation in just 3 years G.R.O.W. Sell of Solvay New Code Growth platforms New Carbon Investment - EV Batteries Polyamides One Planet of Integrity - Thermoplastic Leadership neutrality in batteries Batteries, Thermoplastics - Green hydrogen Composites, Green Hydrogen structure - Rene
Slide 10: Strategic goals achieved ahead of time
Strategic goals achieved ahead of time 2022 Shareholders’ meeting
Slide 11: Delivering 3 years ahead of plan
Delivering 3 years ahead of plan 2020-2024 Targets 2021 Performance Scorecard As of Nov-2019 Total since 2019 Underlying EBITDA Mid single digit/ 8% Org vs. 2019 +4% CAGR in ‘19-’21 growth 2020-2024 year average growth 27% Org vs. 2020 Exceed 30% >30% since 2020 FCF conversion 37.6%* by 2024 3 years
Slide 12: Record cash & returns
Record cash & returns 51% 38% 28% 26% 19% 19% FCF conversion FCF 346 377 566 606 963 843 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 ROCE 6.8% 7.9% 8.2% 8.1% 6.9% 11.4%
Slide 13: €2.7 billion of deleveraging
€2.7 billion of deleveraging Debt & pensions Leverage in € million multiple -€2.7 B a reduction 10,000 4.0 8,210 of 33% a reduction of 19% 7,500 3.0 2,672 5,523 5,000 1,574 -41% 2.0 2,500 1.0 5,538 3,949 2.1 1.7 -29% 0 0 01 Jan 19 31 Dec 21 01 Jan 19* 31 Dec 21 Total Debt & Pensions Pensions Debt De
Slide 14: Financial delivery extends our leadership
Financial delivery extends our leadership Profit Cash Returns EBITDA Margin FCF Conversion ROCE 51% 25% 50% 20% 23.3% 22.7% 22.7% 22.0% 21.7% 20.7% 40% 15% 38% 20% 11.4% 28% 10% 30% 7.9% 8.2% 8.1% 26% 6.8% 6.9% 15% 20% 19% 19% 5% 10% 10% 0% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021
Slide 15: 2021: a year of records
2021: a year of records Net Underlying ROCE Free Dividend Return on capital Sales EBITDA employed Cash Flow Continuing operations € 10.1 bn € 2,356 m 11.4% € 843 m € 3.85 EBITDA margin 23.3% €0.10 increase +12% volumes, +27% org yoy 8.1% in 2019 FCF conversion +5% price +8% vs 2019* at 37.6% +4,4 vs
Slide 16: Q1 2022: more new records
Q1 2022: more new records Net Underlying ROCE Free Sales EBITDA Cash Flow € 3.1 bn € 712 m +20.1% org. vs Q1 12.3% € 216 m +26% org. vs Q1 21 23.3% 3 consecutive years EBITDA margin of positive FCF
Slide 17: Pricing overcomes costs in 2022
Pricing overcomes costs in 2022 €475 Net pricing = Solvay pricing - Variable cost price evolution Q1 2022 €400 Net pricing €106m In € million €300 €269 €369 €200 €139 €255 €100 €80 €60 €29 €145 €23 €17 €19 €13 €4 €53 €1 -€13 €0 €41 €50 €3 -€2 €8 €15 -€19 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4
Slide 18: 2022 outlook increased
2022 outlook increased EBITDA Free cash flow* underlying continuing operations 5 to 8% To exceed € organic growth 650 m previously mid-single digit * Full year outlook maintained despite the suspension of dividends from Rusvinyl
Slide 19: From financial delivery to sustainability delivery
From financial delivery to sustainability delivery Solvay Citizen Day 2021 2022 Shareholders’ meeting
Slide 20: Solvay One Planet broad and strong progress
Solvay One Planet broad and strong progress Progress 2030 Target 2021 Comment versus 2018 targets Align GHG emissions with Paris Agreement -14% Above Paris Agreement Reduce by 11Mt and SBTi -11% structural 30% (-2.5%/yr) 27 Phase out coal wherever renewable -18% CLIMATE alternatives exist (1 plant (
Slide 21: Strong credentials: our progress on climate is recognised
Strong credentials: Our progress on climate is recognised AA rating Reporting Matters Recognition (scale AAA to CCC) In the top 10 reports on Biodiversity B rating Prime company #6/40 in the sector Member of FTSE4Good Top 1% A- 1’s Global Climate Scale A to D Engagement fund
Slide 22: We Care and We Dare
We Care and We Dare 2022 Shareholders’ meeting
Slide 23: Health and Safety remain our first priority
Health and Safety remain our first priority Safety Days 500 Solvay Life Saving Rules introduced Safety culture introduced 400 Number of RII’s* Sites ownership of safety 300 High Severity Potentials introduced Safety Near misses 200 Pulse established across all sites 100 0 2014 2015 2016 2017 2018 201
Slide 24: Responsible Capitalism helped 7,000 families
Responsible Capitalism helped 7 000 families €8.1m “ We see this as a coherent and socially responsible approach 30 24 €2m for the 2021 floods from Solvay projects countries in Europe and China management…” Deutsche Bank
Slide 25: COVID-19 relief efforts
COVID-19 relief efforts Safety net for all 350,000 115,000 1,000,000 700,000 liters H2O2 protection bottles of Masks disinfecting donated Equipment hand sanitizer cleaning solution donated produced
Slide 26: Relief during China's confinement
Relief during “ When everything should be waking up from China’s winter, and the air should be filled with life, vibrancy and hope, our city has gone into confinement hibernation. Time seemed to be frozen. This care package has made me finally feel like spring is here. Thank you! Denni Chen, GBU Silica
Slide 27: Ukraine: standing behind all people
Support our Ukraine: colleagues and their families Standing Solvay Solidarity Fund donation International behind Match private Red Cross all people employees donations
Slide 28: Playing our part
Playing our part Dividend All direct payment & new business investments suspended in suspended Russia from JV
Slide 29: Ethics matter
Ethics matter Solvay values Purposeful responsibility Code of Business Integrity Signed off by Unity not ALL our active uniformity employees Passion for performance Code of Business Integrity, 2020 available on Solvay.com
Slide 30: Engaging with people
Quarterly Pulse surveys 2021 Engagement score: Engaging 80% with people
Slide 31: More flexibility for our people
+ 7,500 More of our people working in a flexibility for hybrid mode our people 70% are enjoying it
Slide 32: Solvay Care Program
Solvay “ This is a great change in Care Program our generation: Fathers can be more present. And this is also becoming part of the Group’s culture today. 16 Arnaud Jacquet, Government Affairs, France weeks of parental leave for all “ I am thankful for the greater comfort and security the extended 20
Slide 33: Putting Human Dignity first
Putting Human Dignity first 80% of employees feel they can be “THEMSELVES” at work 48% women in the Senior Leadership Community 7 Employee Resource Groups
Slide 34: Social dialogue matters
Global Employee Social Share Program dialogue matters Renewed IndustriAll Agreement
Slide 35: Our home, Our planet
Our home Our planet 2022 Shareholders’ meeting
Slide 36: The chemical industry is part of the solution
The Chemical industry is part of the Solution 350 300 Millions of tonnes (CO2 equivalent) >50% 250 270 200 219 150 Since 1990, 100 144 production in the 128 chemical industry 124 50 expanded by 0 1990 2000 2010 2018 2019 45% EU27 chemicals GHG* emissions Source: European Environment Agency (EEA) * E
Slide 37: New carbon neutrality ambition before 2050
New carbon neutrality[1] OUR ambition before 2050 COMMITMENTS Paris Mt CO2 Actuals Agreement 14 2020 12 2014-18 ~-1% p.a. 2018-20 Solvay ~-4% p.a.[3] trend 10 ONE P before lanet Carbon neutrality 8 We ll b before 2050 elo 6 w2 °C 2021 (Pa ris 4 So Ag lv ree of ay me nt) So ou 1. da tsid So 5° 2 lva
Slide 38: Accelerated path towards carbon neutrality
Accelerated path towards carbon neutrality 12.6* Mt CO2 2018 baseline 2030 2040 < 2050 5.8 Energy transition Wide diversity of solutions 1.6 Process emissions Electrification, Process Innovation 2.2 and Technology development Technology yet to 1.9 be developed 1.1 Carbon Responsible Offsets Carbon ne
Slide 39: Accelerating our global energy transition
Accelerating our global energy transition 1 Waste-To-Energy project (FR) 1 on-site solar 2024 farm (NJ) 1 on-site solar 2 sites supplied 2020 2 on-site biomass farm (NL) NEW by solar and wind steam (FR) September 2020 electricity (IN) 2025 2020 and 2022 Carbon free electricity 1 site supplied by for
Slide 40: Four plants exiting coal
Four plants exiting coal Rheinberg, Dombasle, Devnya, Green River, Germany France Bulgaria US -4%* -2%* -2%* -1.5%* Nicolas Vanderheyden, Spiros Nomikos, Todd Brichacek, Norbert Muelders, Site manager Site manager Site manager Site manager 280 000 cars 140 000 cars 140 000 cars 100 000 cars off the
Slide 41: Accelerating our focus on Scope 3 emissions
Accelerating our focus on Scope 3 emissions 2021: First Supplier Circular Economy Working with local Engagement Program Partnerships communities 300 Solvay, Veolia and participants Renault collaboration In partnership with the Sustainable Ellen MacArthur Guar Initiative: 136 Foundation participating
Slide 42: Every factory will be a STAR
Every factory will be a STAR Mapping +100 operations to our Solvay ONE Planet, Solvay One Dignity ambitions, and digital roadmap
Slide 43: A bright future ahead
A bright future ahead 2022 Shareholders’ meeting
Slide 44: Investing for a bright responsible future
Semiconductors Investing for a EV batteries bright responsible future €300m in Tavaux, France Taiwan Agro Healthcare Biotechnology Global DMC seed coatings Invizius UK, start up Biotechnologies
Slide 45: Innovation through our growth platforms
Batteries Thermoplastic Composites Innovation through our More than €10Bn n growth growth opportunity platforms Renewable Green materials and Hydrogen biotechnology
Slide 46: We are 'Fit' and now we will 'Change the Game'
We are ‘Fit’… …and now we will ‘Change the Game’ 2022 Shareholders’ meeting
Slide 47: We are Essential and We are Special
We are Essential and We are Special CHEMICALS Resilient €3.3bn net sales* CASH €4.1bn net sales* SOLUTIONS €3.8bn net sales* GROWTH MATERIALS €6bn €2.9bn net sales* net sales* *in 2021
Slide 48: Essential Co €4.1B
Essential Co MARKET POSITION Soda Ash Soda Ash (global) #1 & Derivatives Bicarbonate (global) Peroxides #1 Hydrogen Peroxide (global) €4.1B 2021 Net sales Silica #1 Silica for tires (global) Others Coatis (Latin America) #1 (Coatis, Special Chem) Rare earths for automotive catalysts (global) Buildin
Slide 49: Specialty Co €6B
Specialty Co MARKET POSITION High-performance polymers; leading position Specialty #1 in thermoplastic composites MATERIALS Polymers Growth platforms: Batteries, Thermoplastic composites, Green Hydrogen, Renewable materials & biotechnology Composites #2 #1 Composites for civil aerospace Composites f
Slide 50: Fundamentals of the two entities
Fundamentals of the two EssentialCo SpecialtyCo entities Fundamentals Supply/demand, Lean Product innovation to solve customer’s needs Pricing discipline, contracting management, Application-driven, differentiated customer Commercial standard offering / one service model approach & service Innovatio
Slide 51: The best is yet to come
The best is yet to come
Slide 52: Listen to our people and what they are most proud of
Listen to our People and what they are most proud of…
Slide 53: solvay.com
S SOLVAY Progress beyond solvay.com