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Solvay Sa — Auto Batteries webinar: Capturing Growth in Clean Mobility (February 2022)

25 slides from Solvay Sa's conference presentation, Feb 2, 2022

Slide 1: Capturing Growth in Clean Mobility
Capturing Growth in Clean Mobility FEBRUARY 2, 2022 SPEAKERS Dr. Ilham Kadri Michael Finelli
Slide 2: With you today
Dr. Ilham Kadri CEO and President of the Executive Leadership Team of Solvay Mike Finelli With President of Solvay Growth Platform you today Dr. Maurizio Gastaldi Director of the Battery Materials Platform page 2
Slide 3: The future of mobility
The future of mobility page 3
Slide 4: Materials business delivers above market growth at superior returns
Materials business delivers above market growth at superior returns Transportation is a signiﬁcant growth driver 50% 26% 12% Transportation (Auto, Civil Aero, Defense) Electronics & Industrial Healthcare & Consumer SOLVAY SALES % 24% 27% 16% Sales Sales Growth EBITDA margin ROCE Materials FY 2021 €
Slide 5: Unmatched specialty portfolio to offer best technology for each customer unmet need
Unmatched specialty portfolio to offer best technology for each customer unmet need High Performance Polymers High Perf Composites Thermo- 3D Carbon Thermoset Resin Adhesives Space HPPA PPS PEEK PSU PTFE PVDF PFA FKM PFPE plastic Additive Fiber comp. Infusion & ﬁlms Ablatives comp. Mfg ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 6: Our global materials presence supports customers globally and locally
Our global materials presence supports customers globally and locally 26 17 Production Research Sites Americas EMEA Asia & ROW & Innovation Centers 16 5 7 6 3 6 production R&I production R&I production R&I sites centers sites centers sites centers 5,800 Global Employees page 6
Slide 7: We help our auto customers reduce emissions
We help our auto customers reduce emissions LIGHTWEIGHTING ELECTRIFICATION Reduced vehicle Improved weight and Energy Density emissions & Safety page 7
Slide 8: Auto industry transformation underway driven by policy and major players
Auto industry transformation underway driven by policy and major players April 2021 July 2021 Oct 2020 2021 China United States EU Major OEMs Technology Roadmap: California Announced GM, Ford, VW, Mercedes 50% of new car sales + other states proposal of zero announce major shifts to be PHEV,BEV,FCEV
Slide 9: Major OEM investments in e-mobility are underway
Major OEM investments in e-mobility are underway Investments announced 80bn€ 70 60 50 >400bn€ Already full Investments in EV 40 electric from OEMs in the next 10 years 30 20 10 ICE phase out 2020 2025 2030 2035 2040 page 9 Source: OEM / company public disclosures
Slide 10: We have a track record of outgrowing the auto market with a proven model
We have a track record of outgrowing the auto market with a proven model 1 2 Decade-long OEM and Unmet needs tier 1 partnerships Lightweighting by 20% to 50% ~€900 million of customer E-motor efﬁciency increase by 10% opportunities in the pipeline with launch date in the next 3 years 4 3 Capex & peo
Slide 11: Key Takeaways
Key Takeaways Shift to EV will We announced accelerate a major capacity Solvay growth expansion to secure to double digit our growth until 2025 We have We have an unrivalled a track record of leadership position outgrowing the in EV batteries Auto Market page 11
Slide 12: The electrification transformation is accelerating
The electriﬁcation transformation is accelerating Light Duty Vehicles, global production by powertrain (million units) 120 Share in 2030 100 BEV 25% 80 Electric powertrain 60 Hybrid 25% 40 ICE powertrain 20 ICE 50% 0 2016 2021 2025 2030 page 12 Source: LMCA G LVPTF (Q3 2021)
Slide 13: Solvay growth will accelerate to double digit, building on our proven track record
Solvay growth will accelerate to double digit, building on our proven track record >2.5 Automotive sales (€B) €bn 4 ion l e rat e ts h acc -digi w t ble Gro dou 3 t o ~1.5 €bn 2 Electric 〜0.8 powertrain +8% €bn (BEV + Hybrid) 〜0.5 1 €bn ICE powertrain (ICE + Hybrid) 0 2016 2021 2025 2030 LEGEND ICE
Slide 14: Reinforcing our leadership position in highest growth, highest value part of the market
Reinforcing our leadership position in highest growth, highest value part of the market ICE Market CAGR Addressable Market Market share Electric powertrain ‘21-’25 value per vehicle1 ‘21 powertrain ~4% 1x 1x ~32% ~2x ~1.5-2x Note: (1) Value of polymers Solvay can provide; page 14 Hybrid represented
Slide 15: Transition to EV doubles addressable market for Solvay
Transition to EV doubles addressable market for Solvay Electrical & Electronic systems Battery Pack MTM®/ VTM®/ LTM® / HTM® PPA /FKM / PPS /PEEK / PAI Structural Thermal & air & semi-structural parts Structural management systems & semi-structural parts Epoxy prepregs PPA /FKM / PPS /PEEK / PAI E-mo
Slide 16: Examples of high performance solutions
Examples of high performance solutions e-Motor Coolant Magnet Wire Battery Lines Insulation 50% 25% motor weight reduction 25% vs aluminum 40% vs steel weight 9% horsepower 3% higher torque casing weight reduction reduction ● Metal replacement by ● 1st mover with PEEK ● Inside: PDVF + LiFSi Ryton XE
Slide 17: Our materials circle the battery with a total opportunity of >€2B by 2030
Our materials circle the battery with a total opportunity of >€2B by 2030 Li-ion battery cell Electrolyte PVDF Ingredients & Solutions cathode binder Keeps the cathode active material LiFSI salt, Energain® high voltage in place and connects it to the solvent, Solgain® solid electrolyte, cathode curr
Slide 18: We are uniquely positioned in the value chain
We are uniquely positioned in the value chain Solvay presence Suspension cathode binder Battery cell OEMs makers Emulsion cathode binder • Solvay is speciﬁed with Cathode all of the major players HEC Cathode active material • We continuously innovate together with Separator manufacturer our key cust
Slide 19: We are the technology of choice for higher end battery applications
We are the technology of choice for higher end battery applications Evolution of Auto Gwh Relative electrode demand by cathode binders technology adhesion in NMC Gwh We have the full 2500 1 range of technological 2000 Emulsion capabilities 0.75 Suspension + Emulsion 1500 Solvay 0.5 We are battery Su
Slide 20: Our innovation enables further progress in safety, energy density and total cost of ownership
Our innovation enables further progress in safety, energy density and total cost of ownership 2015 - 2028 LI-ION BATTERIES 2027 SOLID STATE BATTERIES Generation 2 Generation 3 Generation 4 150 - 320 Wh/kg 150 - 320 Wh/kg 300 - 500 Wh/kg ● Fluorinated additives ● New lithium salt (LIFSI) ● Argyrodite
Slide 21: Our planned capacity secures our growth until 2025 across US, Europe, and Asia
Our planned capacity secures our growth until 2025 across US, Europe, and Asia PVDF production Research Paris, France Next-generation battery Tavaux, Inorganic chemistry France Brussels, Belgium Next-generation West-Deptford, battery Modeling USA Bollate, Italy Changshu, Battery cell prototyping lab
Slide 22: Key Takeaways
Key Takeaways We announced We have Shift to EV will We have an a major capacity a track record of accelerate unrivalled leadership expansion to secure outgrowing the Solvay growth to position our growth until Auto Market double digit in EV batteries 2025 We reduce emissions EV doubles the We are the
Slide 23: Q&A
Q&A Dr. Ilham Kadri Mike Finelli Dr. Maurizio Gastaldi CEO and President of President of Solvay Growth Director of the battery the Executive Leadership Platform materials platform Follow us on Team of Solvay solvay.com
Slide 24: Glossary
Glossary ● BEV: Battery Electric Vehicle ● FCEV: Fuel Cell Electric Vehicle ● ICE: Internal combustion engine vehicle ● LDV: Light Duty Vehicles, mobile machine that is primarily used to transport passengers and cargo (e.g., cars, vans or SUVs) ● OEM: Original equipment manufacturer, an organization
Slide 25: Thank you.
Thank you. Investor Relations Shareholders services [email protected] [email protected] Rue de Ransbeek, 310 Rue des Champs Elysées, 43 1120 Brussels, Belgium 1050 Brussels, Belgium Follow us on solvay.com

Solvay — Auto Batteries webinar: Capturing Growth in Clean Mobility (February 2022) on 6ix

Solvay Sa — Auto Batteries webinar: Capturing Growth in Clean Mobility (February 2022)

Slide 1: Capturing Growth in Clean Mobility

Slide 2: With you today

Slide 3: The future of mobility

Slide 4: Materials business delivers above market growth at superior returns

Slide 5: Unmatched specialty portfolio to offer best technology for each customer unmet need

Slide 6: Our global materials presence supports customers globally and locally

Slide 7: We help our auto customers reduce emissions

Slide 8: Auto industry transformation underway driven by policy and major players

Slide 9: Major OEM investments in e-mobility are underway

Slide 10: We have a track record of outgrowing the auto market with a proven model

Slide 11: Key Takeaways

Slide 12: The electrification transformation is accelerating

Slide 13: Solvay growth will accelerate to double digit, building on our proven track record

Slide 14: Reinforcing our leadership position in highest growth, highest value part of the market

Slide 15: Transition to EV doubles addressable market for Solvay

Slide 16: Examples of high performance solutions

Slide 17: Our materials circle the battery with a total opportunity of >€2B by 2030

Slide 18: We are uniquely positioned in the value chain

Slide 19: We are the technology of choice for higher end battery applications

Slide 20: Our innovation enables further progress in safety, energy density and total cost of ownership

Slide 21: Our planned capacity secures our growth until 2025 across US, Europe, and Asia

Slide 22: Key Takeaways

Slide 23: Q&A

Slide 24: Glossary

Slide 25: Thank you.