Solvay Sa · EURONEXT:SOLB
Solvay Sa — Investor Presentation (November 2003)
29 slides from Solvay Sa's investor presentation, November 2003
Slide 1: Solvay Group presentation: Plastics sector
Solvay Group G presentation Plastics sector November 2003
Slide 2: Plastics sector
Plastics sector © 2003, SOLVAY S.A November 2003
Slide 3: Leadership position
PLASTICS SECTOR Leadership position 01/01/2003 Europe World Specialties Specialty polymers among the world leaders Essentials PVC 2 4 PPPT 0000 3 © 2003, SOLVAY S.A November 2003
Slide 4: Major markets in 2002
PLASTICS SECTOR Major markets in 2002 % of Plastics sales Construction and civil engineering 28 % Automotive industry 18 % Chemical Industry 12 % Electric and electronic industry 12 % Packaging 11 % Consumer goods 9% Human health 3% Other industries 7% TOTAL 100 % PPPT 0000 4 © 2003, SOLVAY S.A Nove
Slide 5: Major markets
PLASTICS SECTOR Major markets Vinyls Construction and civil engineering (pipes, profiles for window frames and doors), automotive industry, cable insulation and sheathing, medical applications, consumer goods, packaging, … Specialty polymers and Performance Compounds Chemicals and oil industry, elec
Slide 6: Major change in Solvay Plastics Portfolio
PLASTICS SECTOR Major change in Solvay Plastics Portfolio HIGHER PROPORTION OF SPECIALTIES (in % of sales) 12% X 4.5 56% Specialties (Specialty polymers/ Performance Compounds) Essentials (Vinyls) 1998 2002 PPPT 0000 6 © 2003, SOLVAY S.A November 2003
Slide 7: Strategy: boost growth and reduce cyclicality
PLASTICS SECTOR PLASTICS : Strategy Target: boost growth and reduce cyclicality 1.Increasing presence in SPECIALTIES (100% owned) with the acquisition of high performance engineering polymers (from BP, …) and the fluorinated products of Solvay Solexis èabout 65% of Plastics EBIT on average 2.The Pla
Slide 8: Plastics portfolio
PLASTICS SECTOR Plastics portfolio ULTRA-HIGH PERFORMANCE PFPE PAI POLYMERS Fluoro PAEK SPECIALTY FLUOROMATERIALS fluids HIGH POLYMERS PPSU LCP PERFORMANCE PES PPS PSO PPA POLYMERS and PAMXD6 PERFORMANCE Elastomers PVDF FKM/FFKM ECTFE PTFE COMPOUNDS MFA, PFA 65% of 2002 BARRIER RESINS PVDC EBIT Daca
Slide 9: Essential and specialty polymers in % of EBIT
PLASTICS SECTOR Essential and specialty polymers in % of EBIT 85% 90% 80% 65% 70% 60% 50% 35% 40% 30% 15% 20% 10% 0% Essentials Specialty Essentials Specialty 1998 2002 PPPT 0000 9 © 2003, SOLVAY S.A November 2003
Slide 10: 2002 EBIT: +234%
PLASTICS SECTOR 2002 EBIT : +234% ü Integration of M EUR Solvay Solexis fluorinated 250 234 specialties (polymers, elastomers and fluids) 200 ü Good performances in PVC and increase in 123 performance 150 compounds 100 70 2nd half 19 111 1st half 50 51 0 2001* 2002 (*) High-density polyethylene EBIT
Slide 11: 9 months 2003 Plastics REBIT: -42%
PLASTICS SECTOR 9 months 2003 Plastics REBIT (EUR 117 M) : -42% VINYLS and PERFORMANCE COMPOUNDS significant decline in Q3/03 compared to a very good Q3/02 SPECIALTY POLYMERS = major contributor to the Group’s results 4 unable to reproduce in Q3/03 the excellent performance of Q3/02 influenced by :
Slide 12: A major player on a global PVC market
PLASTICS SECTOR SOLVAY a major player on a global PVC market (capacities on 01/01/2003) Capacities in M t/year 3.5 3.0 Nafta 2.5 2.6 2.2 Western 2.0 1.9 Europe 1.5 1.4 Asia- 1.2 Pacific 1.0 1.0 0.8 0.7 0.6 Rest of the 0.5 world 0.0 Shin-Etsu Formosa Oxyvinyls Solvay Ineos Georgia Atofina LG Group Ad
Slide 13: VINYLOOP
PLASTICS SECTOR VINYLOOP® A process to regenerate PVC compounds from composite residues Key-dates : w Nov. 97 : research start-up w Mar. 98 : 1st patent w Dec. 98 : Technological pilot plant (Brussels - Reactor of 250 l) w Jul. 00 : 1st industrial unit in Ferrara under construction w Jan. 01 : Indus
Slide 14: Most important locations in Specialty Polymers
PLASTICS SECTOR Most important locations in Specialty Polymers Thorofare/Belle Mead Japan (New Jersey)* Marshalton (Delaware) Greenville (South Carolina) Rheinberg (D) Alpharetta (Georgia) Oudenaarde (B) Orange (Texas)* Brussels (B) Tavaux (F) Spinetta (I)* Bollate (I)* Bussi (I)* Atlanta (Georgia)
Slide 15: Specialty Polymers portfolio
PLASTICS SECTOR Specialty Polymers portfolio SOLVAY SOLEXIS SOLVIN SOLVAY ADVANCED POLYMERS FLUORO MATERIALS BARRIER ULTRA-HIGH POLYMER and HIGH-PERFORMANCE POLYMERS ELASTOMERS FLUOROPOLYMERS FLUIDS PAI PAEK PVDF PPSU LCP FKM E-CTFE PTFE PFPE PVDC PES PPS FFKM MFA / PFA PSO PPA PAMXD6 PPPT 0000 15 ©
Slide 16: Specialty Polymers: 2002 sales by application
PLASTICS SECTOR Specialty Polymers (Fluoromaterials, High Performance Polymers, …) 2002 Sales by application 22% 21% Automotive Elec./Electronics 15% Others 13% Industrial 5% Food Packaging 5% Consumers 10% 9% Build./Construction Medical PPPT 0000 16 © 2003, SOLVAY S.A November 2003
Slide 17: Ultra-High and High-performance polymers
PLASTICS SECTOR Ultra-High and High-performance polymers PPPT 0000 17 © 2003, SOLVAY S.A November 2003
Slide 18: High Performance Polymers: sulfone polymers
PLASTICS SECTOR High Performance Polymers Sulfone polymers RADEL® R (PPSU) - RADEL® A (PES) – UDEL (PSF) à high strength thermoplastics that combine excellent chemical resistance, high heat deflection temperature, good pore forming properties, … Membranes (Udel®) & modules Medical applications : Med
Slide 19: High Performance Polymers: polyamides
PLASTICS SECTOR High Performance Polymers High performance polyamides AMODEL® (PPA) IXEF® (PAA) offers excellent mechanical properties used for the production of complex, over a broad range of temperature and extremely rigid, strong and dimensionally delivers exceptional long term thermal stable str
Slide 20: Fluoromaterials of Solvay Solexis
PLASTICS SECTOR Fluoromaterials of Solvay Solexis Fomblin® Galden® Fluorolink ® (PFPE) Fluorofluids PPPT 0000 20 © 2003, SOLVAY S.A November 2003
Slide 21: Fluoromaterials: fluorinated fluids
PLASTICS SECTOR Fluoromaterials Fluorinated Fluids Fomblin® & Galden® FOMBLIN® High Performance Lubricants for Semiconductor and Aerospace Industries GALDEN® heat transfer fluids cool the dome, walls, and cathode of the etcher (wafer processing) PPPT 0000 21 © 2003, SOLVAY S.A November 2003
Slide 22: Fluoromaterials: fluoroelastomers
PLASTICS SECTOR Fluoromaterials FluoroElastomers Tecnoflon® TECNOFLON® O-Rings, Seals & Molded Parts for Automotive, Aerospace and Semiconductor Industries à used for demanding applications in contact with aggressive fluids, harsh chemicals and in high service temperature environments PPPT 0000 22 ©
Slide 23: Fluoromaterials: fluoropolymers
PLASTICS SECTOR Fluoromaterials Fluoropolymers PVDF Solef®, Hylar®, ECTFE Halar® à excellent chemical and ageing resistance, low permeability and high purity for applications demanding excellent mechanical properties Cleanroom Equipment for the Architectural Coatings Semiconductor Industry PPPT 0000
Slide 24: Most important locations in Performance Compounds
PLASTICS SECTOR Most important locations in Performance Compounds Brussels (Belgium) Heidelberg Jemeppe Grand Prairie Germany (Belgium) (Texas) PP COMPOUNDS PVC COMPOUNDS PP COMPOUNDS Auburn Hills Roccabianca (Michigan) Chevigny (Italy) Mansfield (France) HDPE COMPOUNDS PP COMPOUNDS (Texas) PVC COMP
Slide 25: PVC Compounds
PLASTICS SECTOR PVC COMPOUNDS Electrotechnical equipment Thanks to their high level of heat resistance and their excellent mechanical and dielectric properties, special compounds from the BENVIC range are widely used in producing electrotechnical equipment. Opaque and transparent PVC electrical hous
Slide 26: PP Compounds
PLASTICS SECTOR PP COMPOUNDS Automotive exterior TPO Versatile, recyclable thermoplastic polyolefins used in a wide variety of injection-molded interior, exterior and underhood automotive applications Examples : Cargo Box SEQUEL® 1880 Rear Fascia DEXFLEX® 810 Cladding Package DEXFLEX® 760 Front Fasc
Slide 27: HDPE Pipe Compounds: Polidan PEX
PLASTICS SECTOR HDPE PIPE COMPOUNDS : POLIDAN® PEX Silane crosslinkable HDPE compounds Product Application Polidan® T/A All-plastic pipes; composite PEX/Al/PEX pipes Polidan® T/A-HF All-plastic FLEXIBLE pipes; composite pipes with EVOH PPPT 0000 27 © 2003, SOLVAY S.A November 2003
Slide 28: Visit our Internet site specifically designed for Investors
Visit our Internet site specifically designed for Investors www.solvay-investors.com and become member of our Shareholders’ Club PPPT 0000 28 © 2003, SOLVAY S.A November 2003
Slide 29: 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- forward -looking statements contained in this presentation is subject to risks and unce