Solvay Sa · EURONEXT:SOLB
Solvay Sa — Investor Day (June 2015)
40 slides from Solvay Sa's investor day presentation, Jun 10, 2015
Slide 1: Specialty Polymers, Inventing the future every day
Specialty Polymers, Inventing the future every day Capital Markets Day Augusto Di Donfrancesco June 10-11 2015 President, Specialty Polymers
Slide 2: Specialty Polymers, Inventing the Future Every Day
SPECIALTY POLYMERS, INVENTING THE FUTURE EVERY DAY Augusto Di Donfrancesco President, Specialty Polymers
Slide 3: Solvay Specialty Polymers at a glance
Solvay Specialty Polymers at a glance Diversified end markets with superior growth North America Europe potential 8 production sites 7 production sites 2 R&I centers 4 R&I centers Healthcare Consumer 35% Net Advanced Sales Trans- Industrial 26% 2014 portation 36% 3% Construc- Automotive tion Asia &
Slide 4: Solvay, THE industry leader in high performance polymers
Solvay, THE industry leader in high performance polymers Unmatched portfolio breadth Sales & REBITDA >10% growth Innovation edge Superior value creation CFROI >> WACC Customer intimacy & market knowledge Capital Markets Day 4 June 10-11, 2015
Slide 5: Unique solution offering, differentiating Solvay from competition
Unique solution offering, Differentiating Solvay from competition High-barrier X-linkable Aromatics Aromatics Fluoropolymers Fluoropolymers polymers compounds LCP HPPA PPS PEEK PAI PSU PTFE PVDF PFA FKM PFPE PVDC XLCP … further strengthened through innovation and acquisitions … further strenghtened
Slide 6: Innovation edge: effective and timely delivery
Innovation edge Effective and timely delivery… 2014 data Idea generation Idea selection Idea development End Users OEMs 32% of net sales realized Tier 1 with products < 5-y Converters Specialty Polymers Suppliers ~150 customer- 50+ New product grades specific projects Source of ideas Opportunity ban
Slide 7: Strategic solution partner for over 40 years
Strategic solution partner for over 40 years Market Knowledge Customer Proximity & Intimacy Long-term relationships Business & Sales CUSTOMER Timely delivery on customized solutions Innovation Capability 10 R&I support centers Creating value for our customers… Capital Markets Day 7 June 10-11, 2015
Slide 8: Outgrowing markets
Outgrowing markets Solvay Specialty Polymers 2014 sales by end markets Water Industrial Energy Electrical/Electronics Automotive Addressable 3 Consumer market growth Healthcare ~ 8% p.a.* Construction Advanced Transportation Smart devices Sales CAGR 2013/15 ~ 15% * CAGR 2013-2015 Capital Markets Day
Slide 9: Exciting sustainable growth momentum
Exciting sustainable growth momentum Evolving demography Tomorrow & consumers behaviors Electrical vehicles Today Advanced transportation Innovation Outperforming Healthcare acceleration markets Next generation Smart smart devices devices Resource Automotive Energy constraints & increased … … sustai
Slide 10: Investing to capture growth
Investing to capture growth Acquisitions • PPS Enabling • Composites new technologies • Foams Capacity expansion PFPE, 2015 PEEK, 2016 FKM, H2 2015 PEEK, 2015 PVDF, 2017 Capital Markets Day 10 June 10-11, 2015
Slide 11: Specialty Polymers, inventing the future every day
Specialty Polymers, inventing the future every day Creating value and delivering growth REBITDA double digit CAGR over 2013-2016 CFROI well above WACC THE industry leader, outgrowing markets A strategic solution partner to our customers Capital Markets Day 11 June 10-11, 2015
Slide 12: Identifying and Delivering on Sustainable Demands
SPECIALTY POLYMERS, IDENTIFYING AND DELIVERING ON SUSTAINABLE DEMANDS Jens Hoeltje Head of Strategy and Marketing, Specialty Polymers
Slide 13: Capturing market potential in Automotive, Aeronautics and Healthcare
Capturing market potential in Automotive, Aeronautics and Healthcare Helping our customers with critical sustainability challenges Automotive Aeronautics Healthcare CO2 emissions Improved Growing demand economics & cost efficiency Capital Markets Day 13 June 10-11, 2015
Slide 14: Enabling technologies for Automotive's critical sustainability challenges
Enabling technologies for Automotive’s critical sustainability challenges Applications Our technologies • Electrification CO2 emission • Lightweight materials • Li-Ion Batteries: Cathode and • Solef® PVDF reduction Anode binder, separator, … • KetaSpire® PEEK • Traction motors: magnet wire, • Aquivi
Slide 15: Building a superior portfolio of new lightweight materials for Aeronautics
Building a superior portfolio of new lightweight materials for Aeronautics Improve Lightweight materials cost of • Manufacturing effectiveness PPA production • Maintenance Other PPSU and ownership • Fuel consumption PEEK PVDF PPS Double-digit % Cost Reduction MXD6 Building the Ecosystem since 2008 M
Slide 16: Tegralite: Enabling improved economics
TM Tegralite : Enabling improved economics Reduce order backlog TegracoreTM PPSU Foams Manufacturing: • Thermoformable higher effectiveness, lower cost PVDF Foams Shortened • Injection moldable / direct maintenance time part production UltraMaterialsTM Lower fuel Composites consumption • Semi-contin
Slide 17: Our strategy to meet evolving Healthcare needs
Our strategy to meet evolving Healthcare needs • Growing world population Growing • Increasing size of middle classes in China, demand India and other emerging countries • Aging society Cost • More minimally invasive surgeries efficiency of • Implants with better patient outcomes Healthcare • Reduci
Slide 18: A large breadth of materials for high-tech applications
A large breadth of materials for high-tech applications Growth drivers Our technologies • Replacing metal devices • Radel® PPSU Medical • Hospital acquired infections: • Udel® PSU instruments and - frequency & intensity of cleaning/ disinfection • Ixef® PARA equipment - single use instrumentation •
Slide 19: Engineering Breakthrough Solutions
SPECIALTY POLYMERS, ENGINEERING BREAKTHROUGH SOLUTIONS George Corbin Head of Research and Innovation, Specialty Polymers
Slide 20: Powerful innovation levers across the value chain
Powerful innovation levers across the value chain Precursors Monomers Polymers Alloys Downstream g Capital Markets Day 20 June 10-11, 2015
Slide 21: Sealing performance at very low temperatures
Sealing performance at very low temperatures Precursors Monomers Polymers Alloys Downstream • Advanced engine technology • Requires low temperature (GDI) reduces CO2 emissions but performance and resistance Automotive requires very low temp to automotive fuels performance • Explore and produce in mo
Slide 22: Tecnoflon VPL: a unique solution
Tecnoflon® VPL: a unique solution Precursors Monomers Polymers Alloys Downstream Innovation approach Business impact Breakthrough technology uses Created new family of high-value new building blocks “Specialty” elastomers Novel precursor, monomer and Enables double-digit growth in polymers Auto Indu
Slide 23: Pushing the limits of metal replacement
Pushing the limits of metal replacement Precursors Monomers Polymers Alloys Downstream • More reliable performance with • Requires innovative materials that Electronics greater design freedom enable next-generation technology • More fuel efficient vehicles with • Requires high-temperature plastics r
Slide 24: Strength and durability
Strength and durability Ti-Alloys PrimoSpire® AvaSpire® Specific Tensile Strength Kalix® Alloys Mg-Alloys Ixef® Pushing Al-Alloys Torlon® the limits Stainless Steel KetaSpire® Amodel® Ryton® Radel® Cu-Alloys Ni-Alloys Durability Capital Markets Day 24 June 10-11, 2015
Slide 25: AvaSpire PAEK: customized performance
AvaSpire® PAEK: customized performance Precursors Monomers Polymers Alloys Downstream Innovation approach Business impact Leveraged broad portfolio to create a family of AvaSpire® PAEK products that provide new and unique combinations of performance and value Accelerating growth Developed new proces
Slide 26: Engineering breakthrough solutions
Engineering breakthrough solutions Precursors Monomers Polymers Alloys Downstream Driving innovation Leveraging the power Inventing the across the value of Solvay's unique future of Specialty chain product portfolio Polymers Keeping Specialty Polymers special for the long-term Capital Markets Day 26
Slide 27: Adaptive, Agile, Customer Focused
SPECIALTY POLYMERS, ADAPTIVE, AGILE, CUSTOMER FOCUSED Laird McBeth Director of Business and Sales, Specialty Polymers
Slide 28: Long-term customer relationships
Long-term customer relationships Proximity Talking their language Fast response times Strategic solution partner Capital Markets Day 28 June 10-11, 2015
Slide 29: Creating value for our customers
Creating value for our customers Being in the right place… Tier 2 Tier 1 OEM …at the right time 6-12 months 2-3 years 2- 5 years 5-10 years Timeline depends upon Industry dynamics, scale of challenges and opportunities Capital Markets Day 29 June 10-11, 2015
Slide 30: Automotive powertrain efficiency
Automotive powertrain efficiency Understanding the value chain Unmet customer need OEM contributions The Results increasingly lower Design specifications, material CO2 emissions standards specifications, system validation 1- Engine - Solutions for multiple engine technologies Tier 1 contributions •
Slide 31: Smart Devices: Racing against the clock
Smart Devices Racing against the clock ? ! Unmet customer need OEM contributions The Result Incumbent material Design specifications, color needs, New Unique Product with failing new design end use testing & feedback best combination of: • Chemical resistance • Processing and impact TIER 1 contribut
Slide 32: The Winning formula: bringing it all together
The Winning formula Bringing it all together VALUE + + = Marketing Innovation Customer CREATION Would our customers Resounding Building recommend Solvay to another company? YES* market share > *Best-in-class according to latest NPS (Net Promoter Score) Capital Markets Day 32 June 10-11, 2015
Slide 33: Speaker's Resume
SPEAKER’S RESUME Capital Markets Day 33 June 10-11, 2015
Slide 34: Speakers' Resume: Augusto Di Donfrancesco
SPEAKERS’ RESUME Augusto Di Donfrancecso began his Solvay Career in 1987 as a process engineer in Rosignano, Italy. He has held multiple roles withing the Solvay Group in Production, Technology and Commercial Operations in the Chemicals and Plastics divisions. In 2005 he moved to Buenos Aires, Argen
Slide 35: Speakers' Resume: Jens Hoeltje
SPEAKERS’ RESUME Jens Hoeltje started with Solvay in 1991 in the Engineering department in Germany, developing basic engineering for Fluorochemical processes. After assuming marketing for a flue gas cleaning process Jens moved in 1997 to Specialty Polymers. Over a period of 14 years he assumed vario
Slide 36: Speakers' Resume: George Corbin
SPEAKERS’ RESUME George Corbin started his career with Amoco in 1983 in Research & Development for Specialty Polymers, developing what is currently Solvay's Amodel polymer family. In 1990 he assumed the leadership role for the Process Engineering, Catalysis, & Technology Licensing function in Polypr
Slide 37: Speakers' Resume: Laird McBeth
SPEAKERS’ RESUME Laird McBeth joined Solvay in 1986 as a Polypropylene Account Executive located in Columbus, Ohio. In 1989, he transferred to Solvay Polymers’ headquarters in Houston, Texas and during the next 9 years held various sales, marketing and business management positions. Laird joined the
Slide 38: Contact Information
CONTACT INFORMATION Maria Alcón-Hidaglo Head of Investor Relations +32 2 264 1984 E-mail : [email protected] Geoffroy Raskin Catherine Jouvet Investor Relations, Senior Manager Retail shareholder relations Manager +32 2 264 1540 +32 2 264 2732 E-mail : [email protected] E-mail :
Slide 39: Disclaimer
DISCLAIMER To the extent that statements made in these presentations contain information that is not historical, these statements are essentially forward-looking. The achievement of forward-looking statements contained in these presentations are subject to risks and uncertainties because of a number
Slide 40: www.solvay.com
www.solvay.com SO LVAY asking more from chemistry®