Solvay Sa · EURONEXT:SOLB
Solvay Sa — Q1 2022 Earnings Presentation
25 slides from Solvay Sa's earnings presentation, May 4, 2022
Slide 1: First quarter 2022 Results
Dr. Ilham Kadri CEO and President of the Executive Leadership Team of Solvay First quarter 2022 Results Karim Hajjar CFO of Solvay May 4, 2022 First Quarter 2022 Earnings
Slide 2: Forenote
Forenote 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 to
Slide 3: First quarter 2022 performance
First quarter 2022 performance +26% sales growth driven by pricing leads to record EBITDA Free ROCE Net Sales EBITDA Underlying Cash Flow Return on capital employed Continuing operations € € € 3.1bn 712 m 216 m 12.3% ● +26% organically yoy ● Up by +20.1% organically yoy ● 12th quarter of positive FC
Slide 4: Acceleration of strong pricing into 2022
Acceleration of strong pricing into 2022 € 475m in price overcame €369m of inflationary costs In € million * Impact on net sales +77% QoQ +45% QoQ +25 +441 +475 -44 -466 -369 Net pricing +106 page 4 First Quarter 2022 Earnings
Slide 5: Materials
Materials Q1 2022 performance NET SALES EBITDA EBITDA y/y organic y/y organic margin Highlights + + 24 % 21 % 29 % • Specialty Polymers sales increased significantly to a new record, reflecting continued strong demand in all markets, and most notably automotive, batteries, medical devices, and electro
Slide 6: Chemicals
Chemicals Q1 2022 performance NET SALES EBITDA EBITDA y/y organic y/y organic margin Highlights + + 29 % 15 % 27 % • Higher sales in Soda Ash & Derivatives driven by strong demand and price actions, fully offsetting rising raw material and energy costs • Peroxides sales driven by strong demand in th
Slide 7: Solutions
Solutions Q1 2022 performance NET SALES y/y organic EBITDA y/y organic EBITDA margin Highlights • Novecare increased significantly driven by pricing and volume growth + + in agriculture, coatings, and home & personal care 26 % 35 % 21 % • Special Chem saw higher sales in electronics that were partial
Slide 8: Structural cost reduction
Structural cost reduction >80% of 2024 cost savings achieved Total costs savings to date ~€ Realized in FY 2020 Realized in FY 2021 Realized in Q1 2022 410 m ~€ ~€ ~€ 175m 213m 22m Costs savings target by 2024 € Permanent structural levers 500 m ● Restructuring ~45% of total ● Productivity efficienci
Slide 9: Double-digit profit growth
Double-digit profit growth € 712m in Q1 2022 vs. €583m in 2021 Net pricing Fixed costs Other Cost savings +15 Main drivers Inflation -30 Scope Forex Volume & mix Re-investments -30 conversion Indirect costs -15 • Pricing actions more than Others -25 offsetting variable costs inflation • Sustained momen
Slide 10: Strong free cash flow generation
Strong free cash flow generation Driven by profit, working capital discipline and reinvestments € 216m in Q1 2022 vs. € 282m in 2021 Capex Working capital Main drivers Provisions Financing • Higher profits Taxes €-39m Others €-44m • Investments in growth • Lower pensions and financing EBITDA FCF Q1 2022
Slide 11: 2022 Full Year Outlook Upgraded
2022 Full Year Outlook Upgraded EBITDA Free cash flow Underlying Continuing operations Mid-to-high single to exceed digit growth* € 650m (previously mid-single digit growth) (unchanged) * based on organic growth page 11 First Quarter 2022 Earnings
Slide 12: Q&A
O&A Y¥fno wl % solvay.com
Slide 13: Annexes
Annexes page 13 First Quarter 2022 Earnings
Slide 14: Key figures & Segment review
Key figures & Segment review Underlying, in € million Q1 2022 Q1 2021 % yoy Underlying, in € million Q1 2022 Q1 2021 % yoy % organic Net sales 3,055 2,373 +28.8% Net sales 3,055 2,373 +28.8% +26.1% EBITDA 712 583 +22.1% Materials 879 689 +27.6% +23.7% Specialty Polymers 671 511 +31.4% - EBITDA margin
Slide 15: Strengthening our balance sheet
Strengthening our balance sheet Reduction in net debt and provisions continue Net debt in million € vs end of 2021 Provisions in million € vs end of 2021 Underlying net debt down stable at €3.9 billion Provisions decreased by ~€160 million to €2.4 billion ● Higher free cash flow generation in 2021 ●
Slide 16: Balanced maturities
Balanced maturities Deleveraging and reduced of cost of debt Financial debt [1] in million € and $ NET DEBT Leverage ratio 1.6x S&P stable outlook Period 31 December 2021 31 March 2022 Variation over the period BBB Face value Avg. maturity Avg. cost Face value Avg. maturity Avg. cost Face value Avg.
Slide 17: A balanced presence to better serve our customers
A balanced presence to better serve our customers 2021 figures NORTH EUROPE AMERICA 27% 36 of net sales industrial sites 26% 36 of net sales industrial sites 47% 5 of Group major R&I centers 24% 3 employees of Group major R&I centers employees ASIA PACIFIC LATIN & Rest of the world* AMERICA 34% 20 of
Slide 18: Market segment & region annual figures
Market segment & region annual figures Region (% 2021 Net Sales) Group Materials Chemicals Solutions Europe 27% 31% 32% 21% North America 26% 31% 18% 29% TOP 3 Market position Latin America 13% 2% 25% 10% in ~ 90% of Asia and rest of the world 34% 36% 25% 40% portfolio End markets (% 2021 Net Sales)
Slide 19: Three agile business segments to G.R.O.W. with our customers
Three agile business segments to G.R.O.W. with our customers MATERIALS G CHEMICALS R SOLUTIONS O 34% of Group EBITDA1 39% of Group EBITDA1 27% of Group EBITDA1 Our unique portfolio of high- Our businesses are world-leaders in Thanks to our unique formulation performance polymers & composite essentia
Slide 20: Reinventing Solvay to unleash our full potential
Reinventing Solvay to unleash our full potential WHY HOW WHAT Our Our Our Our Purpose Strategy Organization Solutions and Culture We align our We bond people, G Growth technologies to customer ideas Our new common and societal needs driven and elements to operating model R Resilience by secular tren
Slide 21: 2030 Solvay One Planet goals
2030 Solvay One Planet goals 2021 results (Baseline 2018) 10 ambitious objectives to reduce our global impact Align greenhouse gas emissions Phase out coal Reduce with Paris Agreement & SBTi* (for energy pressure on CLIMATE Reach Carbon neutrality** production wherever biodiversity1 by 2040 excl. so
Slide 22: Making meaningful progress on the climate
Making meaningful progress on the climate Progress 2030 Target 2021 Comment versus 2018 targets Achieved 11% in aggregate versus 6.6% Paris Agreement -14% Reduce by 30% Align GHG emissions with Paris Agreement and SBTi (a) 11Mt -11% structural (-2.5%/yr) CLIMATE 27 Exit announced at Rheinberg in 202
Slide 23: ESG credentials widely recognized
ESG credentials widely recognized AA rating “Medium risk” Recognition on a scale from on Biodiversity AAA-CCC Member of FTSE4Good B rating #5 in the sector Prime company Top 1% A- CDP Climate Change page 23 First Quarter 2022 Earnings
Slide 24: Why invest?
Why invest? We aim to reshape the global Future growth potential Customer partnerships chemical industry by delivering fuelled by megatrends drive innovation solutions that meet the world’s sustainability challenges and provide critical solutions in fast-growth markets. Global scale, diversity of We
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