Solvay Sa · EURONEXT:SOLB

Solvay Sa — Investor Presentation (March 2019)

14 slides from Solvay Sa's investor presentation, Mar 17, 2019

  1. Slide 1: CAF event

    CAF event Ilham Kadri March, 2019 Chairman of the Executive committee & CEO Karim Hajjar Executive committee member & CFO

  2. Slide 2: Forenote

    FORENOTE Following the announcement in September 2017 of plans to divest the Polyamide business, these have been reclassified as discontinued operations and as assets held for sale. For comparative purposes, the first quarter of the 2017 income statement has been restated. Besides IFRS accounts, Sol

  3. Slide 3: 2018 Full Year Performance

    2018 FULL YEAR PERFORMANCE + 5.3% 22%  3% higher volumes across segments organic growth EBITDA margin  Net pricing maintained despite higher raw materials and energy EBITDA prices  Higher fixed costs reflect investments to support growth € 2.2 bn  Volume growth slowing down on softening in some

  4. Slide 4: Organic EBITDA growth driven by higher volumes

    ORGANIC EBITDA GROWTH DRIVEN BY HIGHER VOLUMES 49% 21% Advanced Materials Advanced Formulations Organic growth: +3.1% Organic growth: +8.1% €2,230m  Volume growth across main end-markets: 2018 underlying  Strong volume growth in oil & gas in first automotive, aerospace, healthcare EBITDA half foll

  5. Slide 5: Focus on cash maintained amid higher working capital needs

    FOCUS ON CASH MAINTAINED AMID HIGHER WORKING CAPITAL NEEDS Cash generation (in € million) 2,230 -711 FCF from continuing operations at € 830 m  Working capital phasing  Higher cash variable remuneration for strong 2017  Capex discipline maintained -390 Capex -300 +160 989 -264 FCF to Solvay share

  6. Slide 6: Historic delivery in line

    HISTORIC DELIVERY IN LINE 2016 - 2018 Delivery 2016 - 2018 -20% GHG Intensity -24% kg CO2 eq. Emissions / € EBITDA +7.5% Mid-to-high single digit EBITDA growth Underlying % yoy 40% Sustainable solutions 50% % Group Sales -10 % Accident rate -30% Acc. with medical treatment / m working hours €2.7bn >

  7. Slide 7: Whilst rewarding shareholders with growing returns

    WHILST REWARDING SHAREHOLDERS WITH GROWING RETURNS Underlying EPS Free cash flow to (in €/share) Solvay shareholders (in € million) 10,57 FCF to shareholder 725 +70% CAGR 9,08 8,19 +13% CAGR 527 466 353 Operational net debt 190 deleveraging 108 ~€200 million / year 372 Dividend pay-out 337 357 +4.4%

  8. Slide 8: 2019 Outlook

    2019 OUTLOOK EBITDA Free Cash Flow Underlying at constant scope and forex  Q1 broadly flat versus Q1 2018 [1]  Operational deleveraging  Modest EBITDA growth in FY 2019 [2] [1] Organic growth, excluding scope & forex conversion effects, vs 2018 pro forma EBITDA of €558m [2] Organic growth, exclud

  9. Slide 9: Linking Solvay's sustainability effort to cost of credit

    LINKING SOLVAY’S SUSTAINABILITY EFFORT TO COST OF CREDIT WHAT WHY IMPACT • To integrate sustainability into all • Agreement of the new terms in key aspects of our business - Discount/premium to reflect existing €2 billion revolving • To be in the front line of future cost the breakthrough CO2 credit

  10. Slide 10: Ilham's listening & handover tour

    ILHAM’S LISTENING & HANDOVER TOUR Meeting our Meeting our people investor base 17 sites across 4 locations in main continents investor hubs London 16 townhalls Brussels 12 long-term focused Boston Paris, Aubervilliers Brussels Stamford Bristol Paris Bollate investors Princeton Lyon Engaging with peo

  11. Slide 11: 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

  12. Slide 12: Climate strategy: reducing our absolute GHG emissions

    CLIMATE STRATEGY REDUCING OUR ABSOLUTE GHG EMISSIONS GHG emissions [1] in Mt CO2 eq. 14 13,8 Raising our ambition Energy efficiency [2] in absolute value 13 12.7  -1MT by 2025 12,3 -20% Energy mix  -20% emissions reduction 12 vs no action scenario -1MT Process emissions reduction  Coherent and in

  13. Slide 13: Soda ash energy transition examples

    SODA ASH ENERGY TRANSITION EXAMPLES A new woodpower biomass boiler at Soda Ash plant Other initiatives to curb the carbon footprint of soda ash production: • Cutting the site’s CO2 emissions by • New energy-efficient gas turbine in 30% or 190 kt/year Rosignano, Italy • Scheduled to be on stream in M

  14. Slide 14: www.solvay.com

    ( www.solvay.com SOLVAY asking more from chemistry®

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