Solvay Sa · EURONEXT:SOLB
Solvay Sa — Investor Day (September 2016)
47 slides from Solvay Sa's investor day presentation, Sep 29, 2016
Slide 1: More Sustainable Mobility: Advanced Materials
MORE SUSTAINABLE MOBILITY ADVANCED MATERIALS 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 Materials
ADVANCED MATERIALS Roger Kearns Member of the Executive Committee
Slide 4: Global Leader in Advanced Materials
GLOBAL LEADER 14% ELECTRICAL & IN ADVANCED ELECTRONICS MATERIALS 9% CONSUMER GOODS & HEALTHCARE 2015 Technology PF Net sales leadership 9% INDUSTRIAL € 4,503 m 50% APPLICATIONS AUTOMOTIVE & AEROSPACE Strong customer partnerships BUILDING & CONSTRUCTION 7% Application RESOURCES & ENVIRONMENT 7% 4% AG
Slide 5: Unmatched Portfolio for Sustainable Mobility
UNMATCHED PORTFOLIO FOR SUSTAINABLE MOBILITY APPLICATION AREAS TECHNOLOGIES Structural & semi-structural parts Thermoset composites Thermoplastic composites Interior Specialty resins, compounds and adhesives Lightweighting Engine components Foam/sandwich Electrical system High-performance polymers F
Slide 6: Lead Actor with Unmatched Materials Technology & Integration Know-How
LEAD ACTOR WITH UNMATCHED MATERIALS TECHNOLOGY & INTEGRATION KNOW-HOW S S STRENGTHS STRENGTHS Industrialization Customer Application expertise intimacy Thermoset composites Thermoplastics Innovative Aerospace technologies partnerships Automotive Talent Long-term partnerships customer relationships P
Slide 7: Bill Wood
Bill Wood President, Composite Materials
Slide 8: Composite Materials "At a Glance"
COMPOSITE MATERIALS “AT A GLANCE” COMPOSITE MATERIALS € 1.2 bn ~ 3,000 19 Net sales 2015 Headcount Industrial sites 3 Military and space main market Fighter jets segments: Transports Civil aircraft 60% 25 % Rotorcraft Large commercial Unmanned vehicles transport Launch vehicles Business jets Regiona
Slide 9: How Are Composite Materials and Parts Made
HOW ARE COMPOSITE MATERIALS AND PARTS MADE Carbon Fiber Formulated Resin Composite Material + = Plant Carbon Fiber Carbon Composite Fabrication Aircraft Raw Materials Fiber Materials (Tier 1) OEM (Tier 2) Formulated Resin Formulated Structural Raw Materials Resin Adhesives (Tier 3) Solvay’s Applicat
Slide 10: Where Are Composites Used: Primary Structures
WHERE ARE COMPOSITES USED Aerospace: primary and highly loaded structures Engine Fan Blades Wing & Cases Empennage Helicopter Fuselage Structure & Blades 2016 Capital Markets Day 10 September 29, 2016
Slide 11: Where Are Composites Used: Secondary Structures and Interiors
WHERE ARE COMPOSITES USED Aerospace: secondary structures and interiors Interior Sidewalls & Interior Ceilings Stowbins Structures Structures Landing Flaps, Engine Nacelles Other Wing Moveables, Fairings 2016 Capital Markets Day 11 September 29, 2016
Slide 12: Other Markets Where Composites Are Used
OTHER MARKETS WHERE COMPOSITES ARE USED High- performance automotive Wind energy, rail,… 2016 Capital Markets Day 12 September 29, 2016
Slide 13: What Benefits Do Composites Bring
WHAT BENEFITS DO COMPOSITES BRING Fundamental Value of Composites Lightweighting Aerodynamics Fatigue life Corrosion resistance Lean manufacturing lower part cost Increased passenger comfort Life-of-program maintenance costs 2016 Capital Markets Day 13 September 29, 2016
Slide 14: Aerospace Growth Drivers: Increasing Civil Aircraft Demand
AEROSPACE GROWTH DRIVERS INCREASING CIVIL AIRCRAFT DEMAND MARKET FUNDAMENTALS GLOBAL AIRCRAFT FLEET (UNITS) • Growth in passenger 45,000 traffic…historical and forecast 39,500 40,000 growth of 4.5% / year 35,000 • Airline profitability and 30,000 20,000 resilience…demand for Growth more fuel-efficie
Slide 15: Aerospace Composites Growth Drivers: Increasing Use on New Aircraft
AEROSPACE COMPOSITES GROWTH DRIVERS INCREASING USE ON NEW AIRCRAFT USE OF COMPOSITE ON AIRCRAFTS 60% Percentage of Composites A350 50% 787 Single Aisle F-35 40% 777X UCAV Military Programs 30% B2 V 22 Rafale F 22 Commercial Programs A-6 RW F18 E/F A380 20% A320 A321 F18CD A340 10% C17 777 A300 747 F
Slide 16: How We Win
HOW WE WIN… SOLVAY’S UNIQUE STRENGTHS Recognized Extensive and Broad Providing, for our proprietary materials capturing and technology materials qualification sustaining leadership portfolio heritage value Delivering value through strategic customer collaborations 2016 Capital Markets Day 16 Septemb
Slide 17: Key Programs Driving Solvay Aerospace Growth
KEY PROGRAMS DRIVING SOLVAY AEROSPACE GROWTH CUSTOMER COLLABORATIONS ON NEW PROGRAMS NEW DEVELOPMENT PROGRAMS RAMPING UP • GE-9X Engine used on Boeing 777X • F-35 Joint Strike Fighter • New Russian and Chinese Civil Aircraft • Boeing 777X Empennage • U.S. Long Range Strike Bomber • Boeing 787 & 777X
Slide 18: Excellence and Synergies Drive Additional Value
EXCELLENCE AND SYNERGIES DRIVE ADDITIONAL VALUE COMMERCIAL SYNERGIES WITH SPECIALTY POLYMERS • Thermoplastic composites COMMERCIAL AND MANUFACTURING • Competitiveness via polymer integration EXCELLENCE • Boeing/Airbus interiors with foam core • Debottlenecking thermoplastic lines • Selling synergies
Slide 19: Solvay Well-Positioned for the Future of Composites
SOLVAY WELL-POSITIONED FOR THE FUTURE OF COMPOSITES MORE value creation Boeing 787 Serial Airbus A350 Auto 777 and A320 Empennage New Single Aisle Aircraft Current Innovations applications under development Entry into transport • Industrial scale and economics • Adoption on wing/fuselage • Military
Slide 20: Augusto Di Donfrancesco
Augusto Di Donfrancesco President, Specialty Polymers
Slide 21: Solvay Advanced Materials in Aero: An Unmatched Portfolio of Solutions
SOLVAY ADVANCED MATERIALS IN AERO AN UNMATCHED PORTFOLIO OF SOLUTIONS PRIMARY, SECONDARY CABIN & CARGO STRUCTURES • Seats • Fuselage • Ductings • Empennage • Galleys • Wing moveables MECHANICAL COMPONENTS W&C, FLUID TRANSFER • Brackets AND SEALINGS • Clip nuts • Fuel lines • Attachments • Fluids • P
Slide 22: Unique Customer Value Creation Capabilities
UNIQUE CUSTOMER VALUE CREATION CAPABILITIES Unique expertise One-team Cutting edge solutions from molecules to composites approach to customers THERMOPLASTIC COMPOSITES SPECIALTY TegraCoreTM COMPOSITES POLYMERS STRUCTURAL FOAMS STRATEGIC PARTNER Increased Lower cost of Accelerated production Recycla
Slide 23: Auto Industry Revolution
AUTO INDUSTRY REVOLUTION New Industry Paradigm: • Regulations driving CO2 emission reductions • Sustainability • Shared mobility • Car sharing services and self-driving cars • Connectivity • Safety: Zero casualties SOLVAY ENABLING SOLUTIONS Lightweighting Powertrain Electrification efficiency 2016 C
Slide 24: > 1 Million Electric Vehicles on the Road Today
> 1 MILLION ELECTRIC VEHICLES ON THE ROAD TODAY! ELECTRIC VEHICLES ON THE ROAD VS. BATTERY COST $ per 1,000 1.4 Vehicles kWh in million 900 1.2 800 1.0 700 0.8 600 0.6 500 0.4 400 0.2 300 0 2010 2015 Number of sold xEV (total) Number of sold xEV (China only) Costs in $ per kWh Source: Bloomberg 2016
Slide 25: > 1 Million Electric Vehicles on the Road Today: Solutions
> 1 MILLION ELECTRIC VEHICLES ON THE ROAD TODAY! 1,000 1.4 0 SOLUTIONS 300 in today’s vehicles Solef® PVDF Ryton® PPS, Amodel® PPA, Li-Ion KetaSpire® PEEK Ryton® PPS for battery for lightweight electric motors materials battery packs and parts Solvay partnering with leading OEMs on current and futur
Slide 26: ~10 Million Electric Vehicles by 2020
~10 MILLION ELECTRIC VEHICLES BY 2020 DEPLOYMENT SCENARIOS FOR THE STOCK OF ELECTRIC VEHICLES TO 2030 vs. BATTERY COSTS $ per 400 50 Cars kWh in million 40 300 Cost reduction 30 200 by factor of 4 20 100 10 0 0 2015 2020 2025+ Number of sold xEV (total) Number of sold xEV (China only) Costs in $ per
Slide 27: Solvay Advanced Materials Critical for Growth
SOLVAY ADVANCED MATERIALS CRITICAL FOR GROWTH 2025 Enabling solutions 400 50 for solid-state 2020 batteries 0 0 New materials for next 2015 generation battery Improved materials for current battery generation ENABLING LESS Costs MORE Lightweight & Longevity Safety Energy Density Solvay poised to tak
Slide 28: Carmelo Lo Faro
Carmelo Lo Faro Head of Industrial Business Line, Strategy & Business Development, Composite Materials
Slide 29: More Solutions to Automotive's Sustainability Challenges
MORE SOLUTIONS TO AUTOMOTIVE’S SUSTAINABILITY CHALLENGES COMPOSITES ENABLE Lightweighting Electrification + Design freedom 2016 Capital Markets Day 29 September 29, 2016
Slide 30: Solvay Is Uniquely Positioned to Accelerate Composites Adoption
SOLVAY IS UNIQUELY POSITIONED TO ACCELERATE COMPOSITES ADOPTION Broadest Technology Technology Integration Automotive Portfolio Competences Growth All the building blocks and unique core competences to integrate them 2016 Capital Markets Day 30 September 29, 2016
Slide 31: Unique Core Competences: Key for Composites
UNIQUE CORE COMPETENCES: KEY FOR COMPOSITES Competences Outcomes • Understanding of application-specific • Deliver production-ready solutions needs • Shorten adoption cycle • Collaboration with customers • Lower business & technology risk • Knowledge and infrastructure to integrate • Capture larger
Slide 32: Solvay's Vision of Composites
SOLVAY’S VISION OF COMPOSITES ADOPTION IN AUTOMOTIVE Be a leading supplier of differentiated OUR composite materials solutions VISION • Exploit composites’ value beyond just light-weighting OUR • Make composite parts cost-competitive APPROACH vs metals • Leverage Solvay competences to develop “ecosy
Slide 33: Thermoset Composites
THERMOSET COMPOSITES Traditional hood Process Time 12 hours Broadly used for aircraft and supercars but traditionally with limited suitability for high volume automotive BMW M4 GTS hood Solvay has developed unique technologies that enable automation, faster cycle time and use of existing metal formi
Slide 34: Thermoset Composites: A Full Composite Chassis
THERMOSET COMPOSITES: A FULL COMPOSITE CHASSIS Developed broad set of material and manufacturing technologies to manufacture concept chassis Leveraged investment in engineering firm to exploit value of composites through design First step of a journey towards a composite-centric chassis used at high
Slide 35: Thermoplastic Composites Addressing Industry Gaps
THERMOPLASTIC COMPOSITES ADDRESSING INDUSTRY GAPS • Fast cycle time • Assembly • Recyclability Working on multiple insertion opportunities with OEMs and Tier 1s VOLVO TRUCK FIREWALL Leveraging Composite Materials’ & Specialty Polymers’ world-class expertise, assets and portfolio to deliver top-line
Slide 36: Solvay Market Penetration
SOLVAY MARKET PENETRATION High Beyond STRATEGIC FOCUS Luxury Premium Market Penetration Luxury Premium Platform- wide Parts EVs High End Luxury Supercars F1 TODAY’S Low BUSINESS Time A clear approach based on our understanding of customer needs and technology roadmap 2016 Capital Markets Day 36 Sept
Slide 37: 2016 Capital Markets Day September 29, 2016
2016 Capital Markets Day 37 September 29, 2016
Slide 38: Appendix
S SOLVAY asking more from chemistry” APPENDIX
Slide 39: Solvay's Key Customers Within Aero Supply Chain
SOLVAY’S KEY CUSTOMERS WITHIN AERO SUPPLY CHAIN Tier 1 Next Tiers OEM’s • Spirit Aerosystems • Strata • FACC • BAE Systems • GKN • UTC Aerospace Systems • Triumph • Turkish Aerospace Ind • Orbital ATK • Honeywell 2016 Capital Markets Day 39 September 29, 2016
Slide 40: Solvay's Key Aero Program Positions
SOLVAY’S KEY AERO PROGRAM POSITIONS Program OEM order book 777X 305 F-35 200 787 700 1M MS-21 175 A380 125 CSeries 300 C 919 350 500K A350 775 737 MAX 3,200 A400M 150 Hondajet n/a 200K 737 1,200 A320neo 4,780 SSJ 100 110 This may contain forward-looking information. Source: Industry backlog data as
Slide 41: Speakers' Resume
SOLVAY asking more from chemistry® SPEAKERS’ RESUME
Slide 42: Speakers' Resume: Roger Kearns
SPEAKERS’ RESUME Roger Kearns began his career with Solvay in the USA in 1986. He then held various manufacturing, technical, marketing, and business management positions before moving several times to Belgium and Thailand. In 2004, he was appointed President of Solvay Advanced Polymers. From 2008 t
Slide 43: Speakers' Resume: Bill Wood
SPEAKERS’ RESUME Bill Wood began his career as manufacturing manager at Fiberite Composite Materials in California. He then held various positions in manufacturing and engineering management, and then in general business management, in various locations in the U.S. After Fiberite was acquired by Cyt
Slide 44: Speakers' Resume: Augusto Di Donfrancesco
SPEAKERS’ RESUME Augusto Di Donfrancesco 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 45: Speakers' Resume: Carmelo Lo Faro
SPEAKERS’ RESUME Carmelo Lo Faro has full P&L responsibility for the Industrial Business Line of Solvay Composite Materials. He is a member of Solvay Composite Materials Leadership Team and is also responsible for Strategy and Business Development. Carmelo began his career with ICI, as a Research Sc
Slide 46: 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 47: www.solvay.com
www.solvay.com SO LVAY asking more from chemistry’