Solvay Sa · EURONEXT:SOLB
Solvay Sa — Investor Day (September 2016)
35 slides from Solvay Sa's investor day presentation, Sep 29, 2016
Slide 1: More Sustainable Formulations: Advanced Formulations
MORE SUSTAINABLE FORMULATIONS ADVANCED FORMULATIONS September 29, 2016 London
Slide 2: Disclaimer
DISCLAIMER 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 t
Slide 3: Advanced Formulations
ADVANCED FORMULATIONS Vincent De Cuyper Member of the Executive Committee
Slide 4: Global Leader in Surface Chemistry
GLOBAL 3% LEADER 21% INDUSTRIAL AUTOMOTIVE & AEROSPACE 3% ELECTRICAL IN SURFACE APPLICATIONS & ELECTRONICS 9% CHEMISTRY BUILDING & CONSTRUCTION 2015 pf net sales Customer 19% € 2.9 bn 31% CONSUMER GOODS RESOURES partnership & HEALTHCARE & ENVIRONMENT Application knowledge 15% AGRO, FEED & FOOD Broad
Slide 5: Business Organization Re-aligned to Better Meet Customer Needs
BUSINESS ORGANIZATION RE-ALIGNED TO BETTER MEET CUSTOMER NEEDS OIL & HPC AGRO MINING GAS in % of net sales 19% 11% 19% 12% Advanced Formulations Tailor- APPLICATION EXPERT made solutions Developing formulations PRODUCT Delivering EXPERT products CONSUMER AGRO, RESOURCES GOODS & FEED & ENVIRONMENT HE
Slide 6: Broad Technology Base & Application Knowledge
BROAD TECHNOLOGY BASE & APPLICATION KNOWLEDGE Phos- … Poly- phorous mers Chemistry SURFACE CHEMISTRY Surfac- & LIQUID BEHAVIORS Oximes … tants … Amines SURFACE MATERIAL FINISHING SEPARATION Functionalities SURFACE DROPLET/BUBBLE … … CLEANING SIZE CONTROL GELLING MIXTURE PROPERTIES STABILIZATION HPC
Slide 7: Strong Innovation Portfolio
STRONG INNOVATION OIL & GAS MINING PORTFOLIO Aligned with mega-trends current industria- 2018+ Time to lization market Evolving demography & consumer behaviors ~ 10% Innovation acceleration HPC AGRO ~ 20% R&I projects small size Resource constraints mid size & increased sustainability large size ~ 6
Slide 8: For Oil & Gas
FOR OIL & GAS Emmanuel Butstraen President, Novecare
Slide 9: Stabilizing Oil & Gas Markets
STABILIZING OIL & GAS MARKETS OILFIELD MARKET CONDITIONS GLOBAL OILFIELD Rig & RIG COUNT WTI SPECIALTY CHEMICALS DEMAND count in $/BBL 2500 125 2000 100 -37% 1500 75 -25% 1000 50 -80% 500 25 0 0 2014 2015 2016 2014 2015 2016H1 (annualized) Rig count in North America Cementing & drilling Rig count ou
Slide 10: Broad Portfolio & Customer Access Adapted to New Market Conditions
BROAD PORTFOLIO & CUSTOMER ACCESS ADAPTED TO NEW MARKET CONDITIONS 2015 REDUCE IMPROVE Market > € 6 bn OUR SOLUTIONS YIELD & EFFICIENCY ENVIRONMENTAL FOOTPRINT Sales ~ € 500 m Cementing • Broadest & drilling technology ~ 10% portfolio • Cost efficient solutions in the North • “Lab to Well” • Water u
Slide 11: Building on Solid Foundations & Strengthening Market Position
BUILDING ON SOLID FOUNDATIONS & STRENGTHENING MARKET POSITION Unique technology portfolio & knowledge STRATEGY SOLVAY LEVERS Global presence Provide cost-effective tailor-made solutions, & full market access adapted to changing market conditions “Lab to Well” service model Strong innovation set-up t
Slide 12: Our Footprint Serving All Customer Types Worldwide
OUR FOOTPRINT SERVING ALL CUSTOMER TYPES WORLDWIDE Current sales weighted to North America 15% 75% To grow overseas 5% Global industrial set-up To serve inter- national customer base 5% Central R&I centers Formulation centers close to customer wells Solvay 2015 oil & gas 5 R&I centers %
Slide 13: Unique Innovation Expertise Allowing to React to Market Changes
UNIQUE INNOVATION EXPERTISE ALLOWING TO REACT TO MARKET CHANGES Innovation acceleration Resource constraints & increased sustainability demand FRICTION RHODIABLOC NEXT-GENERATION REDUCERS FL SERIES POLYMERS Leading Additive for all All-in-one position cement types solution Reduces total Delivers
Slide 14: For Home & Personal Care
FOR HOME & PERSONAL CARE Emmanuel Butstraen President, Novecare
Slide 15: Delivering on Consumers' Needs in Home & Personal Care
DELIVERING ON CONSUMERS’ NEEDS IN HOME & PERSONAL CARE 2015 REDUCE IMPROVE Market ~ € 22 bn OUR SOLUTIONS ENVIRONMENTAL YIELD & EFFICIENCY FOOTPRINT Sales ~ € 500 m Personal care • Deliver mildness • Reduce water ~ 70% to formulations usage in all • Largest segments technology • Cost-efficiency tool
Slide 16: Our Strategy to Grow Beyond GDP
OUR STRATEGY TO GROW BEYOND GDP Broad technology portfolio STRATEGY SOLVAY LEVERS New assets in new territories Expand competitive global presence Strong customer relationhips Access all customer types with complete formulation & application expertise Demand for sustainable solutions Focus innovatio
Slide 17: Competitive Footprint to Serve Global & Regional Customers
COMPETITIVE FOOTPRINT TO SERVE GLOBAL & REGIONAL CUSTOMERS Balanced sales weighted in 3 regions 23% To improve in Latin 40% America 30% Worldwide organization 7% R&I labs in close customer Proximity for joint developments Solvay 2015 HPC % net sales distribution 17 plants 6 R&I centers 201
Slide 18: Broad Technology Portfolio Underpinning Innovation
BROAD TECHNOLOGY PORTFOLIO UNDERPINNING INNOVATION Resource constraints & increased sustainability demand Evolving demography & consumer behaviors HAIR CARE EZSOFT ACTIZONE PLATFORM LAUNDRY Next-generation guar Breakthrough Long lasting polymers & derivatives softener technology biocidal effect Im
Slide 19: For Mining
FOR MINING Michael Radossich President, Technology Solutions
Slide 20: Technology Solutions at a Glance
TECHNOLOGY SOLUTIONS AT A GLANCE TECHNOLOGY SOLUTIONS € 0.6 bn ~ 1,700 12 Net sales 2015 Headcount Industrial sites 3 main market Phosphorous specialties segments Agro Mining solutions ~ 30% Pharma Electronics Copper separation Alumina processing ~ 50% Other minerals separation Additive technologies
Slide 21: What We Do in Mining
WHAT WE DO IN MINING 2015 REDUCE IMPROVE Market ~ € 1 bn OUR SOLUTIONS ENVIRONMENTAL YIELD & EFFICIENCY FOOTPRINT Sales ~ € 350 m Copper • Increase • Improve ~ 60% • Broad product selectivity in energy efficiency portfolio separation of mine sites of metals/minerals, • Applications reducing total co
Slide 22: Strongly Positioned in the Mining Industry Value Chain
STRONGLY POSITIONED IN THE MINING INDUSTRY VALUE CHAIN METALS & MINING COMMINUTION SEPARATION REFINING MINERALS Open Grinding & Mineral Smelting pit mine size reduction flotation Alumina refining Electro- winning Solvent extraction Optimizing Maximize Reduce Improve customer process selectivity proc
Slide 23: Focus on Flotation Process Solid-Liquid Separation
FOCUS ON FLOTATION PROCESS SOLID-LIQUID SEPARATION SEPARATION SEPARATION PROCESS EXAMPLE: SOLID-LIQUID SEPARATION motor & drive IN COPPER FLOTATION concentrate Solvay air supply froth launder reagents Cu feed air bubble Solvay slurry collector bubbles attaches to Cu particle, rendering it hydrophobi
Slide 24: Market Leader with Customized Market Approach
MARKET LEADER WITH CUSTOMIZED MARKET APPROACH TECHNOLOGY LEADERSHIP Resulting in Strong history of constant UNIQUE PRODUCTS Innovation streams of valuable new & SERVICES technology for refinery design, build & ongoing operations Largest specialty mining Product line reagent supplier in the world INN
Slide 25: Competitive Footprint Serving Global Customer Base
COMPETITIVE FOOTPRINT SERVING GLOBAL CUSTOMER BASE Selling worldwide 3% 5% 27% 31% Consolidated 6% 10% industrial footprint 9% 12% Robust supply chain 3% servicing global 10% 8% customers 29% 25% Centralized R&I with regional 13% 9% tech labs Sales & technical support close to customers So
Slide 26: Our Strategy for Growing Beyond GDP in Mining
OUR STRATEGY FOR GROWING BEYOND GDP IN MINING Market STRATEGY adjacencies SOLVAY Capture new mines LEVERS New customers: competitor share Existing customers: Capture new geographies share of wallet Capture new metals/minerals MARKET Ore quality decline DRIVERS Supported by INNOVATION • Unique techno
Slide 27: Broad Technology Base Allows for Innovative Solutions
BROAD TECHNOLOGY BASE ALLOWS FOR INNOVATIVE SOLUTIONS Evolving demography & consumer behaviors Resource constraints & increased sustainability demand EMERGING METALS CHINA FLOCCULANT NASH Li FOR ALUMINA REPLACEMENT Increase process Enhance Reduce toxic speed & efficiency performance under expo
Slide 28: Solvay Steady Growth in the Face of Market Drivers
SOLVAY STEADY GROWTH IN THE FACE OF MARKET DRIVERS 6 MARKET 1.2 EVOLUTION Proven business % Copper model of technology 100 in sales, sales 2003) 5 grade [1] 1.0 leadership and customer mining (basemining partnerships Average % Cu in ore (copper grade) in 2003) Solvay productionSolvay 4 0.8 Copper
Slide 29: 2016 Capital Markets Day
2016 Capital Markets Day 29 September 29, 2016
Slide 30: Speakers' Resume
SOLVAY asking more from chemistry® SPEAKERS’ RESUME
Slide 31: Speakers' Resume: Vincent De Cuyper
SPEAKERS’ RESUME Vincent De Cuyper began his career at Solvay in 1987 and has held various positions in production and project management when sent on international assignments in France, Thailand and Argentina. In 1999, he was appointed Manager of the Vinythai plant in Map Ta Put in Thailand and, s
Slide 32: Speakers' Resume: Emmanuel Butstraen
SPEAKERS’ RESUME Emmanuel Butstraen served in BASF for 17 years prior to joining Solvay, holding several positions, his last being Group Vice President for Strategic Marketing worldwide. Prior to that role, Emmanuel headed BASF’s Agrochemicals operations in France for the Agrochemicals Divisions, fo
Slide 33: Speakers' Resume: Michael Radossich
SPEAKERS’ RESUME Michael Radossich Prior to the creation of Solvay’s Technology Solutions GBU, Michael Radossich spent 20 years with Cytec in positions of increasing responsibility. He began his career as a project engineer before moving into an operations leadership role within Cytec’s manufacturin
Slide 34: Contact Information
CONTACT INFORMATION Maria Alcon Hidalgo Bisser Alexandrov Head of Investor Relations Investor Relations, Manager +32 2 264 3694 +32 2 264 3687 E-mail : [email protected] E-mail : [email protected] Kimberly Stewart Valérie-Anne Barriat Head of Investor Relations (effective Octo
Slide 35: www.solvay.com
www.solvay.com SO LVAY asking more from chemistry’