Solvay Sa · EURONEXT:SOLB
Solvay Sa — Q3 2015 Earnings Presentation
88 slides from Solvay Sa's earnings presentation, Oct 29, 2015
Slide 1: Q3 2015 results
Q3 2015 results FORENOTE All historic data are restated for perimeter changes for comparison purposes, unless otherwise indicated. Solvay presents Adjusted October 29, 2015 Income Statement performance indicators that exclude non- cash Purchase Price Allocation (PPA) accounting impacts related to th
Slide 2: Safe harbor
Safe harbor This presentation may contain forward- Consequently, actual results or future looking information. Forward-looking events may differ materially from those statements describe expectations, plans, expressed or implied by such forward- strategies, goals, future events or intentions. lookin
Slide 3: Strong Q3, underpinned by organic growth, evidencing portfolio upgrade benefits
Strong Q3, underpinned by organic growth, evidencing portfolio upgrade benefits Strong quarter Step-change in with REBITDA 14% portfolio Pricing power Volume Cytec Across all operating Innovation-driven growth Acquisition process progressing segments continued smoothly, expected to close
Slide 4: Cytec, a step-change in our portfolio upgrade
Cytec, a step-change in our portfolio upgrade Upgrading portfolio * Reinforcing position in since 2011 the strategic value matrix ACQUISITIONS Ryton Ability to extract value Chem- Rhodia logics INOVYN 2014 Eco Services (JV) 2011 DIVESTITURES 2011 2012 2013 2014 2015 * The Cytec acquisition is subjec
Slide 5: Q3 2015 financial highlights
Q3 2015 financial highlights € 2.7 bn +5.0% € 524 m +14% Net Sales yoy REBITDA yoy Supportive forex (US), but benefit reducing qoq Pricing power, underpinned by excellence programs, more than offset slight volume decline Volumes down Innovation-driven growth offset by adjustments in Strong
Slide 6: Pricing power more than offset substantial volume adjustments in Oil & Gas and acetate tow markets
Pricing power more than offset substantial volume adjustments in Oil & Gas and acetate tow markets Net Sales REBITDA Pricing power in € m in € m € 58 m 55 (17) 2 524 124 (25) 3 2,714 37 (14) Fixed Others 3 28 costs (including 2,585 Volume Price (4)% equity (1)% - 458 - Volume Price Variable earnings
Slide 7: Net pricing & forex supportive across operating segments
Net pricing & forex supportive across operating segments REBITDA Q3 2015 (in € m) Advanced Persisting headwinds in Another innovation- Advanced Formulations Novecare’s Oil & Gas driven REBITDA record, Materials market’s demand especially at Specialty (8.3)% 26% Profit improvement at Polymers 1
Slide 8: Advanced Formulations Q3 2015 performance
Advanced Formulations Q3 2015 performance Profit improvement in other markets offset by persisting headwinds in Oil & Gas Net sales (in € m) REBITDA (in € m) 50 (110) Novecare 735 (5) 15% margin 15% (14) 655 71% Scope Conversion (1)% forex Volume Price 7% (15)% (2)% 655 107 98 (11)% 15% (8.3)% 14% A
Slide 9: Advanced Materials Q3 2015 performance
Advanced Materials Q3 2015 performance Another innovation-driven REBITDA record, while new capacities are started up Net sales (in € m) REBITDA (in € m) Specialty 60 7 874 Polymers 63 26% margin 27% 712 31 59% Price Volume 1% Conversion Scope forex 8% 236 4% 9% 874 187 26% 15% Silica 23% Special 26%
Slide 10: Performance Chemicals Q3 2015 performance
Performance Chemicals Q3 2015 performance Sustained higher net pricing offset yoy volume drop in Acetow Net sales (in € m) REBITDA (in € m) Soda Ash & 18 26 806 Derivatives 743 2 17 margin 26% 26% 50% Volume Price Scope Conversion 2% 4% forex 2% 806 194 211 14% 19% 17% Peroxides 8.5% Emerging 9.0% B
Slide 11: Functional Polymers Q3 2015 performance
Functional Polymers Q3 2015 performance REBITDA doubled due to strengthened net pricing in Polyamide Net sales (in € m) REBITDA (in € m) Polyamide 394 - (6) 5 (16) 11.8% 377 margin 98% Scope Conversion Volume Price - forex 1% (4)% (2)% 377 5.2% 44 2% 21 (4.5)% 115% n.m. Chlorovinyls Q3 2014 Q3 2015
Slide 12: Corporate & Business Services Q3 2015 performance
Corporate & Business Services Q3 2015 performance Costs up yoy due to CER impairment and forex impact REBITDA (in € m) Q3 2015 Q3 2014 Energy Services (8) 5 of which one-off (7) - CER impairment (50) Other C&BS (58) (55) (66) Reported (66) (50) Q3 2014 Q3 2015 excluding one-offs (59) (50) Contributi
Slide 13: Solvay's share in Net Income at € 121 m
Solvay’s share in Net Income at € 121 m Adjusted* P&L Other elements • € (34) m financial charges at RusVinyl, including forex losses on €- in € m Q3 2015 Q3 2014 denominated debt Net sales 2,714 2,585 Non-recurring costs up with Cytec REBITDA 524 458 • Cytec acquisition costs of € (43) m, inclu
Slide 14: Higher REBITDA drives higher FCF; Net debt reduced
Higher REBITDA drives higher FCF Net debt reduced Free Cash Flow Net debt** evolution in € m in € m Free Cash Flow € 188 m Q3 Q3 (1,608) 450 Delta 2015 2014 (32) 4 (1,473) (46) 7 8 (26) (7) (223) REBITDA* 450 375 76 Changes in FCF of Acquisitions Dividends Other Net net debt Change in - changes disc
Slide 15: Capital investment efforts maintained
Capital investment efforts maintained Forex driving nominal amount up sustained Capex (861) high efforts* Continuing operations in € m (734) In 2015 Q4 (318) • 8* new facilities to start up (307) Q3 (223) • > 50% growth capex (205) Q2 (151) (215) • ~70% of growth capex (177) Q1 (147) in Growth Engin
Slide 16: Working capital discipline maintained
Working capital discipline maintained Industrial working capital % of gross sales 16.3% 16.5% 15.6% 15.7% 15.6% 15.2% 15.3% IWC/sales Average 2014 12.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 Committed to further optimization Q3 2015 results 16 29/10/2015
Slide 17: Net debt reduced
Net debt reduced Capital structure 30/06/2015 Capital structure 30/09/2015 in € bn in € bn Total equity Total equity 7.3 7.2 Hybrid Hybrid bond Gross debt Gross debt bond 1.2 (2.6) (2.7) 1.2 Other Net debt Other Net debt (1.3) (1.5) (1.4) (1.6) Equity Equity 6.1 6.0 Major loans Cash & cash Major loa
Slide 18: Rewarding shareholders with stable to growing dividend
Rewarding shareholders with stable to growing dividend Gross dividend 4 in €/share Interim gross dividend of 3 € 1.36 / share Dividend • Payable on January 21, 2016 2 5.3 % CAGR • Calculated as 40% of total dividend of previous year according to dividend policy 1 Total FY dividend 0 1982 1987 1992 1
Slide 19: Outlook 2015
Outlook 2015 Solvay confirms solid REBITDA growth in FY 2015 Q4 results expected to moderate vs Q3 due to seasonality Q3 2015 results 19 29/10/2015
Slide 20: 2015 Priorities
Transformation • Continue portfolio upgrade 2015 • Grow with our customers Priorities • Maintain focus on excellence • Sustain profit & value growth Cytec, a transformation step change Q3 2015 results 20 29/10/2015
Slide 21: Investor relations contacts; Next events
Investor relations contacts Maria Alcón-Hidalgo Geoffroy Raskin Bisser Alexandrov +32 2 264 1984 +32 2 264 1540 +32 2 264 2124 [email protected] [email protected] [email protected] Next events Nov 17, 2015 Extraordinary General meeting (2nd call) Jan 21, 2016 Payment
Slide 22: Annexes
Annexes • Additional Q3 & Q3 ytd 2015 financial data • 2015 considerations • Group presentation • Cytec acquisition • Segment & GBU presentation Q3 2015 results 22 29/10/2015
Slide 23: Forex and excellence more than offset adjustments for first 9 months
Forex and excellence more than offset adjustments in Oil&Gas and acetate tow markets for 1st 9 months Pricing power Net Sales REBITDA € 149 m in € m in € m 569 (160) 176 (46) (27) 8,036 8 1,526 136 (91) Volume Price (2)% - Fixed Others 7,639 16 (27) costs (including 1,369 1 (3)% equity Volume earnin
Slide 24: Income statement 9M; Balance sheet
Income statement 9M Balance sheet in € m 9M 2015 9M 2014 in € m 30/09/2015 31/12/2014 Net sales 8,036 7,639 Fixed assets 10,304 10,080 REBITDA 1,526 1,369 Investment & shares 489 545 Other elements (48) (16) Loans & other non current 255 (10) financial receivables / payables Depreciation & Amortizat
Slide 25: Q3 ytd FCF lower due to discontinued operations
Q3 ytd FCF lower due to discontinued operations Seasonal uplift in net debt Free Cash Flow Net debt** evolution in € m in € m (318) (6) 18 (1,473) 9M 9M Delta 2015 2014 Other Changes in Free Cash Flow € 11 m (143) changes net debt in net debt attributable REBITDA* 1,028 961 67 (256) 1% to "Assets Di
Slide 26: Cash flow statement
Cash flow statement in € m Q3 2015 Q3 2014 in € m 9M 2015 9M 2014 Cash flow from operating Cash flow from operating 420 362 746 753 activities activities Cash flow from investing Cash flow from investing (212) (299) (994) (810) activities activities Cash flow from financing Cash flow from financing
Slide 27: Factors impacting Net income
Factors impacting Net income in € m Q3 2015 Q3 2014 in € m 9M 2015 9M 2014 IFRS Net income, Group 103 115 IFRS Net income, Group 368 (110) Rhodia PPA (after tax) 18 18 Rhodia PPA (after tax) 54 58 Non-recurring items 61 30 Non-recurring items 126 106 M&A-related elements 14 10 M&A-related elements 4
Slide 28: Pensions liabilities down as discount rates increased
Pensions liabilities down as discount rates increased Cash contribution stable at € (42) m in Q3 2015 Pensions (30/09/2015) • € (120) m in Q3 ytd 2015 in € bn Net • € (180) m in 2014 pension liabilities Pension (2.7) liabilities Discount rates* increased in Q3 2015 (4.8) Pension assets Average Curre
Slide 29: Annexes
Annexes • Additional Q3 & Q3 ytd 2015 financial data • 2015 considerations • Group presentation • Cytec acquisition • Segment & GBU presentation Q3 2015 results 29 29/10/2015
Slide 30: REBIT(DA) considerations for 2015
REBIT(DA) considerations for 2015 Forex impact REBITDA adjustments Mainly linked to USD (see next slide) RusVinyl JV Consolidated through equity associates Immediate impact on conversion exposure Adjusted for financial charges Deferred transactional impact due to hedging Volatility lin
Slide 31: Significant forex tailwind expected at prevailing rates
Significant forex tailwind expected at prevailing rates Forex exposure Exposure to USD • Conversion: • Sensitivity of ~ € 100 m REBITDA impact No cash effect / no coverage provided per (0.10) USD/€ change • Transactional: • Half conversion, half transactional Typical coverage on a 6-12 month rolling
Slide 32: Financials and tax considerations for FY 2015
Financials and tax considerations for FY 2015 Cost of net debt Hybrid bond € (500) m retail bond redeemed at maturity in Nominal value of € 1.2 bn June 2015 Initial average dividend yield of 4.7% Cost of net debt at ~€ (100) m € 0.7 bn at 4.199% + additional forex impact of ~€ (40) m € 0
Slide 33: Other considerations for 2015
Other considerations for 2015 Cash flow Discontinued operations FCF fluctuations Indupa sale Cash expenses for pensions of ~€ (180) m Strategic intent untouched Sustained high level of capex efforts, Disposal process re-launched after CADE anti- at constant forex trust veto to Braskem en
Slide 34: Annexes
Annexes • Additional Q3 2015 financial data • 2015 considerations • Group presentation • Cytec acquisition • Segment & GBU presentation Q3 2015 results 34 29/10/2015
Slide 35: Solvay, a major global chemical player
Solvay, a major global chemical player 2014 figures 2014 figures Strong fundamentals € 10.2 bn 119 Net Sales Industrial sites Well-balanced geographical € 1.8 bn spread and end-user markets 15 REBITDA Major R&I centers Leading player in 90% 17.5% of its businesses 26,033 REBITDA margin Employees (FT
Slide 36: Well-balanced geographical spread and end-user markets
Well-balanced geographical spread and end-user markets Balanced Exposure to geographical exposure* higher growth end-markets* Automotive & North Aeronautics Consumer goods America Europe & Healthcare 18% 23% 34% 26% Energy & Environment Industrial 10% applications Agro, 16% Feed & Food Latin Asia/Pa
Slide 37: Solvay is making an ongoing, in depth transformation
Solvay is making an ongoing, in depth transformation … Group profile Growth Resilience Returns Q3 2015 results 37 29/10/2015
Slide 38: Distinct strategic intent for our businesses
… with distinct strategic intent for our businesses Advanced Performance Materials Chemicals HARVEST; SELECTIVELY INVEST & DIVEST INNOVATE & INVEST BREAK- Advanced THROUGH Formulations PROFITABILITY IMPROVEMENT Functional INITIATIVES Polymers Q3 2015 results 38 29/10/2015
Slide 39: Upgrading portfolio
Upgrading portfolio Divestments Strategic Portfolio Monetizing Divestitures refocussing for value Special Chem Chlorvinyls LifeScience Europe & Eco Services Refrigerants Ability to extract value Latam PCC 2014 Re-investments for value creation ADVANCED 2011 ADVANCED MATERIALS FORMULATIONS CYTEC Comp
Slide 40: Our main thrusts: innovating effectively
Innovating effectively Our main thrusts RESPONSIBILITY OPEN INNOVATION EFFECTIVENESS SPM methodology to Large Ecosystem Customer assess & prioritize for faster & wider focus projects progress • Sustainable solutions • Partnership with key clients • 82% of Group’s R&I managed by the • Products with i
Slide 41: Delivering strongly: excellence scope expanded
Delivering strongly Excellence scope expanded Management Model Performance Sustainable value oriented Entrepreneurial Collaborative Empowerment Customer € 800 m innovation focus Accountability vs € 670m initially foreseen Excellence Excellence underpinned by management model Q3 2015 results 41 29/10
Slide 42: Underpinning growth momentum through investments
Underpinning growth momentum though investments 861 785 708 Capex* in € m Capex discipline 2012 maintained 2013 2014 2015 2016 Growth capex Capex* 48% • Strategic fit ratios 43% • IRR 15% 38% Capex / REBITDA Maintenance Solvay Peers** range capex at Peers** median ~€ 400 m Capex / deprec
Slide 43: Allocating capex strategically
Allocating capex strategically Growth capex 2015-2018* Portfolio Regional Solvay’s business matrix of GBUs, based on value generation potential Based on main projects GROWTH ENGINES High investment 60% level in value enhancers Solvay’s ability to extract value Americas Europe CHALLENGE RESILIENT Sel
Slide 44: With current pipeline starting to deliver in 2016
With current pipeline starting to deliver in 2016 Major Industrial Years to Projected Total growth projects start-up maturity IRR* capex GROWTH ENGINES Novecare Alkoxylation USA & Singapore 2015 ≤3 >20% € 500 m Aroma Performance Vanillin Asia 2015 ≤3 >20% Specialty Polymers Polymers China 2015 ≥6 ~1
Slide 45: Remuneration aligned to value creation
Remuneration aligned to value creation REBITDA* 35% CFROI* VARIABLE Share-price REBITDA 30% Cash Sustainability FIXED 35% Applicable to Executive Committee (*) Targets and KPIs aligned & Business General Managers to 2016 ambitions Q3 2015 results 45 29/10/2015
Slide 46: Rewarding shareholders with stable to growing dividend
Rewarding shareholders with stable to growing dividend Gross dividend 4 in €/share 3 Dividend 2 5.3 % CAGR 1 0 1982 1987 1992 1997 2002 2007 2012 For >30 years ~40% average pay-out Q3 2015 results 46 29/10/2015
Slide 47: Annexes
Annexes • Additional Q3 2015 financial data • 2015 considerations • Group presentation • Cytec acquisition • Segment & GBU presentation Q3 2015 results 47 29/10/2015
Slide 48: Cytec, a step-change in our portfolio transformation
Cytec, a step-change in our portfolio transformation … Upgrading portfolio * Reinforcing position in since 2011 the strategic value matrix ACQUISITIONS Ryton Ability to extract value Chem- Rhodia logics INOVYN 2014 Eco Services (JV) 2011 DIVESTITURES 2011 2012 2013 2014 2015 * The Cytec acquisition
Slide 49: Cytec, leader in composites and specialty chemical formulations
Cytec, leader in composites and specialty chemical formulations AEROSPACE MATERIALS MINING & SPECIALTY MATERIALS Aerospace Industrial In Process Additive 2014 figures Materials Materials Separation Technologies Global $ 2.0bn #2 #2 #1 - position Sales 3 large players >6 large players Niche mar
Slide 50: Cytec-Solvay: complementary technological know-how
Cytec-Solvay: complementary technological know-how … Aerospace thermoplastics Specialty Polymers Innovation goals Semi- Low weight, longlife, continuous corrosion resistance, process; LEAP high- bypass turbo-fan Lockheed Martin: Airbus twin aisle aerodynamics Suitable for UltraMaterials™ engine prog
Slide 51: Cytec financial details
Cytec financial details Offer value Financing • 28.9% premium to closing price Pre-tax synergies6 • Short term financing on 28 July 2015 > €100m p.a. • US$ 5.8 bn bridge • Contingent hedges for long- Balancing • Enterprise value of US$ 6.4bn Costs term equity part caution • EV/EBITDA1 multiple • Tar
Slide 52: Cytec offers an excellent strategic fit with Solvay
Cytec offers an excellent strategic fit with Solvay Propels Solvay to global #2 largest player in aerospace advanced composite materials Strengthens Solvay’s growth and resilience Improves Solvay’s sustainability offering & environmental profile Provides earnings momentum Creates Value Q3 2015 resul
Slide 53: Perfect fit with Solvay's strategy
Perfect fit with Solvay’s strategy Focused on sustainability & value Platform to accelerate Solvay’s portfolio reshaping Group profile Growth Resilience Returns Q3 2015 results 53 29/10/2015
Slide 54: Annexes
Annexes • Additional Q3 2015 financial data • 2015 considerations • Group presentation • Cytec acquisition • Segment & GBU presentation Q3 2015 results 54 29/10/2015
Slide 55: Organized in operating segments and Global Business Units
Organized in Operating segments and Global Business Units Performance Chemicals Advanced Materials Functional Polymers Advanced Formulations Corporate & Business Services Novecare Specialty Soda Ash & Polyamide Solvay Energy Polymers Derivatives Services P&I Engineering Aroma Silica Peroxide Plastic
Slide 56: Advanced Formulations
Advanced Formulations 2014 figures € 2,854 m € 426 m 15% Net Sales REBITDA Margin Aroma Novecare Coatis Performance As one of Solvay’s growth engines, the businesses 71% grouped under Advanced Formulations stand out for Novecare their innovation capacity and relatively low capital Net sales Coatis i
Slide 57: Novecare
Novecare Delivering sustainable solutions for surface chemistry North America Europe 12 production sites 7 production sites Focused on 12 R&I & tech centers 4 R&I & tech centers key markets Home & Personal care 20% 53% Net 16% sales 2014 25% 6% Latin America Asia & RoW 3 production sites 9 productio
Slide 58: Novecare: customer intimacy with tailor-made solutions
Novecare Customer intimacy with tailor-made solutions Delivering Developing Tailor-made Strategic value proposition products formulations solutions Develop innovation model with core customers HPC Leading position in niche markets through formulations & broad portfolio INDUSTRIAL Leading provider in
Slide 59: Novecare: broad portfolio of innovation projects
Novecare Broad portfolio of innovation projects across markets and aligned to megatrends Time to Large size market projects Evolving demography & consumers Mid-size behaviours projects Small size 13% of our portfolio projects Innovation acceleration 40% of our portfolio Time to market Resource const
Slide 60: Novecare: investing for competitiveness and regional growth
Novecare Investing for competitiveness and regional growth coming on stream in 2016 Expansion in Germany to access Eastern Europe New plant, construction 2012-2014 Genthin, Germany Ethylene oxide on pipe in US, Europe and Asia New plant, construction 2013-2015 Singapore New plant, construction
Slide 61: Novecare: successful strategy delivery across markets
Novecare Successful strategy delivery across markets underpinning growth levers Markets Strategic levers Growth trend evolution % of Tailor-made Inno- Competi- net sales solutions vation tiveness 2010-2014 2014-2016 HPC 20% high 1-digit 2-digit INDUSTRIAL 20% high 1-digit high 1-digit COATINGS
Slide 62: Coatis
Coatis Sustainable solvents solutions provider and leading Latin American player of phenol Multiple applications for phenol and oxygenated solvents 8% 10% 3% Net Sales 2014 79% Latin America Asia & RoW 1 production site 1 R&I center 1 R&I center € 0.5 bn ~ 600 1 production site Net sales 2014 employ
Slide 63: Aroma Performance
Aroma Performance World’s largest Diphenols & Fluoroaliphatics integrated producer serving customers growth and innovation North America Europe 1 production site 3 production sites 1 R&I center Vanillin ingredients for Food, Flavors & Fragrances 38% 16% Net Sales 4% 2014 42% Asia & RoW 1 production
Slide 64: Advanced Materials
Advanced Materials 2014 figures € 2,762 m € 709 m 26% Net Sales REBITDA Margin Specialty Polymers Silica Special Chem A leader in markets with high entry barriers and strong 54% returns on investment, the Advanced Materials segment Specialty Polymers is a major contributor to the Group’s performance
Slide 65: Solvay Specialty Polymers
Solvay Specialty Polymers Inventing the future every day 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- Auto
Slide 66: Specialty Polymers: unique solution offering
Specialty Polymers 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 … fu
Slide 67: Specialty Polymers: outgrowing markets
Specialty Polymers 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
Slide 68: Specialty Polymers: powerful innovation levers
Specialty Polymers Powerful innovation levers across the value chain 2014 data Precursors Monomers Polymers Alloys Downstream 32% of net sales realized with products < 5-y 50+ New product grades 3,300+ Patents in force Q3 2015 results 68 29/10/2015
Slide 69: Silica
Silica Growth through innovation for sustainable mobility HDS (Highly Dispersible Silica) North America Europe for fuel-efficient & 1 production site 3 production sites (1 in construction) performance tires 2 R&I centers 41% Net Sales 28% 2014 31% Latin America Asia & RoW 2 production sites 3 produc
Slide 70: Silica: Highly Dispersible Silica delivers value to the tire industry
Silica Highly Dispersible Silica (HDS) delivers value to the tire industry Excellent technical performance … … growing across a number of applications Rolling Resistance In passenger car and light trucks 125 + 25% 120 • Energy-efficient tires 110 • Winter tires 100 with HDS • Sport tires 90 Carbon-B
Slide 71: Special Chem
Special Chem, Innovative solutions for growth industries Formulations North America Europe 3 production sites 14 production sites 2 R&I center 4 R&I centers Fluor Rare earths & other metals 39% Net sales 26% 2014 31% 3% Latin America Asia & RoW 2 production sites 8 production sites Automotive Electr
Slide 72: Special Chem: creation of new GBU
Special Chem Creation of new GBU, enhancing scale, innovation and growth options Special Aroma* Chemicals Performance Special Chem Fluor Fluor chemicals chemicals Fluor Rare earth Sr/Ba Key technologies chemicals chemicals chemicals Sr/Ba Rare Earth chemicals Systems Electronics Key end markets Auto
Slide 73: Performance Chemicals
Performance Chemicals 2014 figures € 2,944 m € 724 m 25% Net Sales REBITDA Margin Soda Ash & Emerging Derivatives Peroxides Acetow Biochemicals Operating in mature resilient markets, this Segment’s 47% Soda Ash success is based on economies of scale, Peroxides competitiveness and quality of service.
Slide 74: Soda Ash & Derivatives
Soda Ash & Derivatives Resilient cash generator for Solvay North America Europe 2 production sites 7 production sites Soda ash 3 R&I centers in many applications Flat glass 45% Net sales 24% 2014 19% Container glass 12% Asia & RoW 1 production site (in construction) Detergents € 1.4 bn ~ 3,500 10 pr
Slide 75: Soda Ash & Derivatives: products and end-markets
Soda Ash & Derivatives Solvay products Leading player with very competitive supply approximate main end-market exposures Raw materials Products Applications End-markets Synthetic process ~20% Additives in chemical and Industrial applications metallurgical applications Limestone ~20% Flux in glass (f
Slide 76: Soda Ash: market leader with world-class assets
Soda Ash & Derivatives Market leader with “world-class” assets Solvay assets 66% “World-class” assets addressing regional and export markets Solvay has 36% Rheinberg Bernburg Green River (Wyoming, US) of European • Green River (US, Wyoming) Devnya Green River Dombasle capacity • Natural soda ash pro
Slide 77: Soda Ash: cost competitiveness
Soda Ash & Derivatives Cost competitiveness, key success factor in the soda ash industry Average FOB Natural process (NP) Synthetic process cash cost Freight & logistics Solvay Solvay costs “World-class” “Local” assets assets Production Costs Turkey ((NP) Africa (NP) China (NP) EU 1st CIS North
Slide 78: Soda Ash & Derivatives: market maker in Bicarbonate
Soda Ash & Derivatives Market maker in Bicarbonate, a diversified growth story Global Bicarbonate demand Total market volumes (2014) Solvay positioning Unparalleled security of supply Others 14% 20% Food 8 facilities in Europe and North America Healthcare 13% New 100 kt/yr plant in Thailand (0
Slide 79: Peroxides
Peroxides Global market & technology leader North Europe Peroxides Pulp America 9 production sites (1 HPPO*) 2 production sites in diversified markets 2 R&I centers 41% HPPO* 13% CAPACITY Homecare 13% 33% Latin Asia & RoW America 5 production site 1 production site (2 HPPO) Food & aquaculture 1 R&I
Slide 80: Peroxides: market and technology leader
Peroxides Solvay market and technology leader Global market leader Technology leader • On-purpose on-site technologies • High productivity process for H2O2: mega plants to serve PO customers > 70 % market share • Reviewed H2O2 production process to allow for tailor made customer solutions • Process
Slide 81: Peroxides: HPPO, a game changer
Peroxides HPPO*, a game changer generating strong growth & guaranteed returns HPPO HPPO: plants the preferred route to PO Solvay HPPO >70% of Long term contracts worldwide with the 2 WW On-purpose route capacity leaders (BASF, DOW) in PO/PU chain Low capital Solvay JV with intensity & Dow & BASF env
Slide 82: Acetow
Acetow Leading the market with quality and innovation Products North America Europe 1 production J/V 2 production sites 1 R&I center 35% 1% Net 12% Sales 2014 Cellulose acetate flakes Cellulose acetate tow 52% Applications Latin America Asia & RoW 1 production site 1 production site New applications
Slide 83: Emerging Biochemicals
Emerging Biochemicals Leader in bio- based epichlorohydrine, vinyls and caustic soda in South East Asia Vinyl applications Europe 1 R&I center Films Sheets Net Sales 2014 100% Asia & RoW Pipe & fittings Wires & cables Profiles 1 production site Epicerol® applications € 0.4 bn ~ 500 1 production site
Slide 84: Functional Polymers
Functional Polymers 2014 figures € 1,654 m € 111 m 6.7% Polyamide Chlorovinyls Net Sales REBITDA Margin Polyamide & Intermediates Fibras Engineering Plastics PVC Compounds The key success factor of this Segment, which primarily 93% groups the Polyamide activities, is continuous Polyamide manufacturi
Slide 85: Polyamide
Polyamide Integrated polyamide player 3 business units Europe 7 production sites 2 R&I centers 48% Net Polyamide & Intermediates 4% Sales 2014 15% 33% Latin America Asia & RoW 4 production sites 3 production sites 3 R&I centers 4 R&I centers Fibras € 1.5 bn ~ 3,600 14 production sites Engineering Pl
Slide 86: Corporate & Business Services
Corporate & Business Services 2014 figures € (188) m REBITDA Other Corporate Energy Services & Business Services This Segment includes the Solvay Energy Services business which delivers energy optimization programs both within the Group as well as for third parties. It also includes the corporate fu
Slide 87: Targeting Sustainable Value Growth
Executing a clear value creation strategy Towards a higher growth, less cyclical & greater returns Chemical Group Targeting Sustainable Value Growth Q3 2015 results 87 29/10/2015
Slide 88: Feedback expected by end March 2015
THE FIRST ROUND-THE-WORLD www.solvay.com SOLAR FLIGHT MARCH 9 2015 Feedback expected by end March 2015