Solvay Sa · EURONEXT:SOLB
Solvay Sa — Investor Presentation (August 2004)
15 slides from Solvay Sa's investor presentation, August 2004
Slide 1: Solvay Group presentation: Transforming Solvay
Solvay Group presentation Transforming Solvay August 2004
Slide 2: A strategy applied with determination
Transforming Solvay « A strategy applied with determination » 2 © 2004, SOLVAY S.A August 2004
Slide 3: A Strategy applied with determination
A Strategy applied with determination w STRENGTHENING OUR LEADERSHIP in all of our activities : from 75% in 2000 to about 85% in 2003 (in sales) w FASTER DEVELOPMENT OF PHARMACEUTICALS and SPECIALTIES in the other sectors : from less than 30% in 1995 to about 2/3 in 2003 (in REBIT) è through constan
Slide 4: Strategic focus
Solvay is a hybrid group with 3 sectors à Strategic focus w Pharmaceuticals : acceleration of strategy through partnerships with major players and reinforcement of R&D programs w Chemicals : continued reinforcement of competitiveness through restructuring, rationalizations, acquisitions and partners
Slide 5: Leadership in our markets
Leadership in our markets SOLVAY is among the leaders for about 85% of its sales (75% in 2000) Market position Europe US World Hormone Therapies • Female 4 2 2 • Male - 1 1 Pharmaceuticals Digestives/Enzymes 1 3 1 Laxatives 4 - 8 Antispasmodics/IBS 1 6 2 Antidepressants N°1 in Japan Vertigo (Ménière
Slide 6: Faster development of Pharmaceuticals
Faster development of Pharmaceuticals commitment to develop the 4 therapeutic areas : hormone therapies, gastroenterology, psychiatry and cardiology w Non-cyclical and focused area of growth for Solvay w Mid-sized Pharmaceutical company w Strong investments in R&D (~15% of sales) and well balanced p
Slide 7: Faster development of Specialties
Faster development of Specialties in Chemicals, Plastics and Processing (Fluorinated specialties, Specialty Polymers, Fuel Systems, …) w Reduced economic cyclicality w Generally above-average margins and returns on investment w Very specific, high value added and strongly growing markets w Major Res
Slide 8: Competitive Essentials
Competitive Essentials “their success lies both in their history and their characteristics è all are essential to our daily lives” w Leadership position w A clear and flexible structure including Joint ventures/ Partnerships/Assets swaps in highly competitive essentials è PVC (with BASF and TotalFin
Slide 9: Focus on Competitiveness
Focus on Competitiveness In a more challenging economic environment : w various parts of the organization are examining proposals which will allow them to reduce their principal operating expenses by 20% over the next three years w Industrial restructurings, in particular in Chemicals : rationalizat
Slide 10: Focus on Innovation
Focus on Innovation “Innovation is vital to our Group's future” Objectives within three years : w 1/5 of our revenue should be from products, markets and applications created over the past five years; w One innovative project in two should be generated in interaction with external partners, such as
Slide 11: Acceleration of the change over the last few years
Acceleration of the change over the last few years 4Very selective acquisitions w (Specialty Polymers) Solvay Solexis, High performance polymers of BP w (Soda ash) American Soda 4Strategic alliances / partnerships / joint ventures w (PVC) Solvin in PVC in Europe (+TotalFinaElf) w (Automotive) Inergy
Slide 12: Ongoing projects
Ongoing projects w Pharmaceuticals : rich R&D pipeline and growth opportunities w Salt : sale of the participation in ESCO joint venture to K+S w Hydrogen peroxide : agreement with BASF for the supply of H2O2 for the production of Propylene Oxide w Soda ash : mothball of American Soda in the US w In
Slide 13: Higher proportion of pharmaceuticals and specialties
Higher proportion of pharmaceuticals and specialties >70% 67% 70% 60% ü Accelerated shift to higher margin 50% Specialties with the acquisition 40% < 30% 33% of Solexis ü More efficient and 30% more competitive 20% Essentials 10% Pharmaceuticals and Specialties 0% Essentials 1995 2003 In % of Group
Slide 14: For further information, visit www.solvay.com
For further information, visit also www.solvay.com 14 © 2004, SOLVAY S.A August 2004
Slide 15: Forward-looking statements
“ To the extent that any statements made in this presentation contain contain information that is not historical, these statements are essentially essentially forward- forward -looking. The achievement of forward--looking statements contained in this presentation is subject to risks and uncertaintie