Solvay Sa · EURONEXT:SOLB
Solvay Sa — IHS Markit World Soda Ash Conference 2019
23 slides from Solvay Sa's conference presentation, Sep 26, 2019
Slide 1: Solvay Vision of the Soda Ash Industry
Solvay Vision of the Soda Ash Industry Striving for Security of Supply and Sustainability Christophe Clemente (President) Solvay Soda Ash & Derivatives IHS Markit World Soda Ash Conference Cannes | September 26th 2019
Slide 2: Challenges of the Soda Ash Industry
CHALLENGES OF THE SODA ASH INDUSTRY Solvay Vision of the Soda Ash Industry 2 IHS Markit World Soda Ash Conference Cannes | September 26th 2019
Slide 3: The Stakeholders of the Soda Ash Industry Set Our Challenges
THE STAKEHOLDERS OF THE SODA ASH INDUSTRY SET OUR CHALLENGES Solvay Way PLANET CUSTOMERS SUPPLIERS INVESTORS Stakeholders Expectations Safety Value Creation along Sustainability the whole value chain COMMUNITIES EMPLOYEES Security of Supply Solvay Vision of the Soda Ash Industry 3 IHS Markit World S
Slide 4: Striving for Security of Supply
STRIVING FOR SECURITY OF SUPPLY Solvay Vision of the Soda Ash Industry 4 IHS Markit World Soda Ash Conference Cannes | September 26th 2019
Slide 5: +16 MT of Soda Ash Demand by 2030
+16 MT OF SODA ASH DEMAND BY 2030 World CAGR 2.0% +15.8 Mt World Excl. China CAGR 2.2% +10.2 Mt China CAGR 1.7% +5.7 Mt China growth expected to slow down Soda Ash demand expected to increase by +10,2 Mt over 2018-30 excluding China RoW expected to grow faster with APAC, LATAM and MEA being main gro
Slide 6: Timely Investments Should Be Ensured to Provide Security of Supply
TIMELY INVESTMENTS SHOULD BE ENSURED TO PROVIDE SECURITY OF SUPPLY SOLVAY DEVELOPS 1.4 MT CAPACITY TO MEET CUSTOMER NEEDS 2019-2021 End 2021 2019-2021 2020 +500 kt +600 kt +100 kt +200 kt Through excellence Through capacity Through excellence Through capacity programs & expansion in Green programs &
Slide 7: Growing Geopolitical Uncertainties Impact Global Trade and Price Volatility
GROWING GEOPOLITICAL UNCERTAINTIES IMPACT GLOBAL TRADE AND PRICE VOLATILITY GEOPOLITICS Currency Chinese 1,58 2,5 2,3 1,6 exchange 2,2 net exports 2,0 POLITICAL 1,4 EUR/USD Soda Ash 1,5 INSTABILITY 1,2 1,5 1,4 1,1 Volumes (MT) 1,0 1,14 1,0 0,8 0,6 0,5 Jan-05 Jan-10 Jan-15 2004 2009 2018 4000 Freight
Slide 8: For 156 Years, Solvay Has Built a Unique & Balanced Global Footprint
FOR 156 YEARS, SOLVAY HAS BUILT A ● Offering both natural and synthetic UNIQUE & BALANCED GLOBAL FOOTPRINT (dense and light) soda ash ● Providing safety of supply through our TO SECURE THE STRATEGIC SUPPLY OF ITS global network of plants and sales offices CUSTOMERS WORLDWIDE ● Having a unique global
Slide 9: And Keeps Focusing on Cost-Competitiveness
AND KEEPS FOCUSING ON COST-COMPETITIVENESS 2018 directional worldwide industry cost curve ($/t) 1 Natural Synthetic Freight to FOB SOLVAY Cash Cost SOLVAY Local World-Class Assets Assets Supply Soda Ash SOLVAY SOLVAY Demand aggregated capacities Europe US Europe over capacity (1) Excluding Domestic
Slide 10: Striving for Sustainability
STRIVING FOR SUSTAINABILITY Solvay Vision of the Soda Ash Industry 10 IHS Markit World Soda Ash Conference Cannes | September 26th 2019
Slide 11: Main Environmental Challenges of the Soda Ash Industry
MAIN ENVIRONMENTAL CHALLENGES OF THE SODA ASH INDUSTRY VALUE CHAIN OF SODA ASH RAW MATERIALS PRODUCTION CO2 (Energy, Limekilns) TRANSPORT Shipping emissions (SOx, particles) CO2 USE CO2 (Energy) Solvay Vision of the Soda Ash Industry 11 IHS Markit World Soda Ash Conference Cannes | September 26th 20
Slide 12: With 60 MT Soda Ash Produced per Year, the Industry Emits 58 MT of CO2
WITH 60 MT SODA ASH PRODUCED PER YEAR, THE INDUSTRY EMITS 58 MT OF CO2 60 Mt SA 58 Mt CO2e NATURAL SYNTHETIC Natural Soda SA Production per Process ~4 Mt ~13 Mt ~12 Mt ~31 Mt Ash is less In million tons Soda Ash Soda Ash Soda Ash Soda Ash CO2 intensive and fulfills 30% 0.45 0.75 1.05 1.10 of the dem
Slide 13: CO2 Is Now a Tangible Part of Soda Ash Cost Structure
CO2 IS NOW A TANGIBLE PART OF SODA ASH COST STRUCTURE EMISSIONS TRADING WORLDWIDE The state of play of cap-and-trade in 2019 CO2 regulation and markets are emerging and developing in multiple regions of the world In European Union, CO2 cost has increased from 5 €/t in 2017 to 25 €/t in 2019 Beyond C
Slide 14: Solvay Reduces Its CO2 Footprint
Solvay’s Climate Strategy SOLVAY REDUCES ITS CO2 FOOTPRINT -1 Mt CO2 over 2017-2025 ENERGY TRANSITION IS OUR TOP at constant scope PRIORITY in Mt CO2 eq. 13,8 14 13 12.7 12,3 -20% BIOMASS FOR 12 -1Mt COAL PHASE- SOLAR PANELS CO-FIRING OUT Carrières with coal in Rheinberg 11 Green River (2021) Les Pe
Slide 15: 12 MT of Soda Ash Shipped on Vessels Yearly
12 MT OF SODA ASH SHIPPED ON VESSELS YEARLY 20% Soda Ash globally traded 1.7 Mt in 2018 EUROPE (incl. Russia) 12.6 11.2 Global Trade 20% Capacity Demand 1.4 Mt CHINA 4.8 Mt NORTH AMERICA 29.7 3.6 Mt 25.4 TURKEY 80% 12.8 7.3 4.7 Local Supply 1.1 Capacity Demand Capacity Demand Capacity Demand Solvay
Slide 16: Environmental Standards Are More and More Stringent on Sea Freight
ENVIRONMENTAL STANDARDS ARE MORE AND MORE STRINGENT ON SEA FREIGHT New IMO* 2020 regulation to reduce Sulphur oxides (SOx) emissions from ships • Vessels operating within ECAs will be required to use fuel oil with a maximum sulfur content of 0.1%. • All vessels that operate outside Emission Control
Slide 17: Solvay Develops Sustainable Solutions for the Marine Industry
SOLVAY DEVELOPS SUSTAINABLE SOLUTIONS FOR THE MARINE INDUSTRY TO HELP COMPLY WITH NEW ENVIRONMENTAL REGULATIONS Dry exhaust gas treatment system for SOx and particles removal Marine Solutions 300 satisfied customers on land benefit from 30 years SOLVAir® experience SOLVAir® and ANDRITZ developed a s
Slide 18: La Méridionale First Vessel Equipped with Solvay and Andritz Technologies
LA MERIDIONALE FIRST VESSEL EQUIPPED WITH SOLVAY AND ANDRITZ TECHNOLOGIES Marine Solutions From April 2019, SOLVAir® Marine solution is tested on the Piana, La Méridionale’s flagship. The trial campaign, in collaboration with ANDRITZ, is successful. Solvay Vision of the Soda Ash Industry 18 IHS Mark
Slide 19: Key Take-Aways
KEY TAKE-AWAYS SODA ASH DEMAND IS EXPECTED TO GROW BY 16 MT OVER 2018-2030. To reply to customer needs and avoid product shortage, TIMELY INVESTMENTS are needed. AS A STRATEGIC PARTNER, SOLVAY COMMITS TO SERVE ITS SODA ASH AND BICAR CUSTOMERS BY: - Developing 1.4 Mt capacity to meet customers needs
Slide 20: www.solvay.com
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Slide 21: Safety Is Our Value, We Never Compromise on Safety
SAFETY IS OUR VALUE WE NEVER COMPROMISE ON SAFETY People protection is an integral part of the way we conduct our business. Life saving rules We are constantly reviewing our process Devnya Safety days and monitor it on a daily basis so that every on all sites person producing, delivering or using ou
Slide 22: Solvay Soda Ash Plants Have Built Strong Relationships with Communities
SOLVAY SODA ASH PLANTS HAVE BUILT OVER THE YEARS STRONG RELATIONSHIPS WITH COMMUNITIES SOCIETAL ACTIONS Contributing to society is part of Solvay’s DNA. To develop strong relationships with communities around our sites, we are engaged in many societal actions that focus on Science, Youth, Employabil
Slide 23: www.solvay.com
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