Building a new model of sustainable chemistry. Meeting with Investors at VFB-Happening 2014 Karim Hajjar CFO

Transcription

1 Building a new model of sustainable chemistry Meeting with Investors at VFB-Happening 2014 Karim Hajjar CFO

2 Solvay at a glance Acceleration of Solvay s transformation Delivery in a challenging economic context Strong fundamentals to create value 2 Forenote All references to 2012 Income Statement data are restated for: the Group s new business organization effective as from January 1, 2013; the application of IAS 19 revised; the Group s European Chlorovinyls activities planned to be contributed to the JV with Ineos. The European Chlorovinyls business activities are reflected as Assets Held For Sale on the balance sheet (in one single line) and as discontinued operations in the Income Statement as required by IFRS. As from December 31, 2013, Benvic (the PVC compounding business) is reflected in the Balance Sheet as "Assets Held for Sale", but as continued operations in the Income Statement. Chemlogics is consolidated in the financial statements from November 1, Solvay is presenting Adjusted Income Statement performance indicators that exclude non-cash Purchase Price Allocation (PPA) accounting impacts related to the Rhodia acquisition. Furthermore, all figures are historical figures before restatement for IFRS 11 applied by Solvay as from Jan 1st 2014.

3 Solvay at a glance Acceleration of Solvay s transformation Delivery in a challenging economic context Strong fundamentals to create value 3

4 Solvay, a major global chemical player 9.9 bn Net sales 1.7 bn REBITDA Based on strengths Well-balanced geographical spread and end-user markets 117 Industrial sites 15 Major R&I centers 16.7% REBITDA margin Leading player in 90% of our businesses 29,400 Employees (EFTEs) 378 m Adjusted Net Income, Group share Strong R&I portfolio 56 Country presence All figures excluding discontinued operations, except for employees Building a new model of sustainable chemistry 4

5 Well-balanced geographical spread and end-user markets Balanced geographic exposure* Exposure to high growth end-markets* 5 North America 25% Latin America 11% Europe 33% * Figures represent % of 2013 net sales (pro-forma Chemlogics) Asia Pacific & RoW 31% Aeronautics & Automotive 17% Consumer Goods & Healthcare 25% Agro Food 12% Energy & Environment 11% Building & Construction 10% Electrical & Electronics 6% Industrial Applications 19%

6 Building a new model of sustainable chemistry Our commitments Planet Customers Reach excellence in safety & health Deploy unmatched sustainable portfolio management Reduce our impact on environment by 2020 Investors Suppliers Energy consumption Greenhouse gas emissions Groundwater consumption Air emission Water emissions Sustainable water management Communities Develop rich & balanced social dialogue Employees 6

7 Solvay at a glance Acceleration of Solvay s transformation Delivery in a challenging economic context Strong fundamentals to create value 7

8 Converting vision into value Our vision Our 2016 ambition Build a strong global leader in the chemical industry Be a model of sustainable chemistry Become a high growth, less capital intensive & high return Group REBITDA to reach bn REBITDA margin to reach 18% CFROI* to increase by >100 bp vs /3 rd of businesses in value-creation zone Being a model of sustainability Reducing our impact on environment * CFROI = REBITDA Rec. Capex Tax Gross assets + Working Capital 8

9 A clearly defined strategy Our strategy Business profile enhanced Reinforcing business profile through strategic portfolio changes Striving for excellence across businesses Innovating to create sustainable solutions Solvay s ability to extract value ENHANCE Solvay YE 2012 RESTORE GROW Solvay YE 2013 Chemlogics Chemical industry Transforming company culture with a focus on performance EXIT Value creation potential of industry segment Solvay businesses 9

10 Strong innovation portfolio aligned with global megatrends 2013 Climate change 15 Resource scarcity Advanced materials Major sites worldwide 1,950 Advanced formulations R&I staff Health & well being Renewable chemistry R&I efforts 22% Next bn consumers Organic electronics Q4 & FY 2013 results 26/02/2014 New sales ratio Sustainable energy Ecoprocesses m 251 Patents filed

11 REBITDA growth supported by strong operational levers REBITDA In m Inflation Operational excellence > 10% CAGR Organic growth Innovation Portfolio 2,300-2, ,663 Chemlogics (10 months) (260) 300 Industrial excellence Purchasing, supply & other efficiencies 280 New production capacities Commercial excellence Innovative products Innovation excellence Example: 2013* 2016 * Chemlogics consolidated for 2 months 11

12 A strong team with a proven track record Executive Committee as of Jan 1st, 2014 Jean-Pierre Clamadieu Karim Hajjar Vincent De Cuyper Pascal Juery Roger Kearns Jacques van Rijckevorsel CEO CFO Advanced Formulations Advanced Materials Performance Chemicals Functional Polymers Solvay Energy Services E. Butstraen Novecare A. Di Donfrancesco Specialty Polymers C. Clemente Soda Ash M. Laudenbach Polyamide & Intermediates P. Rosier Solvay Energy Services V. Kamel Coatis T. Benner Silica G. Crauser Peroxides F. Hincker Engineering Plastics D. Rage Aroma Performance H. Du Rare Earth Systems O. Ferrary Acetow F. Ferraroli Fibras B. Wilkes J. Harton Special Chemicals Eco Services B. Van der Wielen Emerging Biochemicals 12

13 A performance culture to move from good to great Internal campaign Customer-centric, empowered, entrepreneurial, result-oriented Employer branding campaign 13

14 Solvay at a glance Acceleration of Solvay s transformation Delivery in a challenging economic context Strong fundamentals to create value 14

15 FY 2013 results: demonstrating our resilience in a difficult environment Net Sales 9.9 bn (5)% yoy Forex headwinds Raw materials deflation Volume decrease primarily related to CER phase-out REBITDA 1,663 m (12)% yoy Stable allowing for exceptionals & Chemlogics CER phase-out and guar effect exceptionals Pricing power preserved Excellence programs delivering Net Income 378 m Adjusted, Group Share Significant non-recurring costs (239) m (e.g. restructuring for integration and excellence) FCF 524 m Net Debt 1,102 M Strong Free Cash Flow Stable Net Debt Hybrid bonds of 1.2 bn classified in Equity Stable dividend proposed at 3.20 gross / share 15

16 Stable underlying REBITDA allowing for exceptionals (carbon credits and guar) In m 1, Pricing power +3 M 1 % Structure Carbon credits -7 % Volumes & mix Guar -11 % Selling price 11 % Raw materials & energy costs -2 % Fixed costs ~-100 Guar -5% Result of Hichem JV 9 1% Others Other JV results ~ 18 Conversion -36 Other 27 1, % Margin Margin 18.0% 16.7% 16

17 Stable total dividend proposed Solvay s gross dividend in /share 2013 CAGR >5% 3.20 / share (gross) dividend proposed 1.33 interim dividend paid in January balance to be paid in May Over more than 30 years 40% average pay out Committed to stable / growing dividend 17

18 Solvay share price performance compared to indexes since January 2012 Until April 22, Solvay +77% BEL 20 CAC January 2012 January 2013 April

19 Solvay at a glance Acceleration of Solvay s transformation Delivery in a challenging economic context Strong fundamentals to create value 19

20 Executing a clear value creation strategy Progress on many fronts Poised for growth On track towards 2016 targets Towards a higher growth, improved cash generation & enhanced returns Chemical Group Targeting Sustainable Value Growth 20

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