Acquisition of Cytec represents a step-change in our portfolio transformation Upgrading our portfolio Rhodia Chemlogics Ryton since 2011 INOVYN Eco (JV) Acquisitions Services Solvays positioning in the Strategic Value Matrix…
Cytec offers an excellent strategic fit with Solvay Propels Solvays to world 2 largest player in aerospace composite materials Accelerates growth for Advanced Materials in Lightweighting Reinforces Advanced Formulations with worlds…
Cytec provides compelling solutions for sustainability challenges facing consumers 2014 YE 2014 2.0bn Sales 20% REBITDA margin* Shift toward greater Expansion of composite Declining ore grades and composite usage to use in…
Cytec is a leader in composites and mining chemicals Composites Mining & Specialty Chemicals Aerospace Materials Industrial Materials In Process Separation Additive Technologies Global 2 2 1 - positions Niche markets 3 large…
Cytec enhances growth and resilience Pro Forma Industrial 6% Industrial Automotive & applications applications Aerospace 16% 16% 18% Energy & 24% Energy & Automotive & Increased 10% Environmental Aerospace Environmental…
Market opportunities and business case 10
Attractive opportunity in composites Market Drivers Total Composites Segment: Market Size & Growth Aerospace CAGR Increasing demand for air transport CAGR 201320E Higher penetration of composite into new Aerospace Size bn airplane…
Leveraging Cytecs strength in aerospace composites Aerospace Primary and Secondary Cytecs Aerospace Market Structures Credentials Primary structure Established 2 player in the fast-growing Rear Floor Fuselage Empennage Vertical fin…
Leveraging Cytecs lightweight materials for automotive Carbon Composites Key KeySuccess Factors Success Factors Technology in Automotive 2.3 Technical Expertise & Leadership Market in US bn Access to OEMs & Established…
Solvay will support Cytec in creating a new market with serial production in luxury cars Composite Content 100,000+ 5,000 Process Time 400 hours 100-400 hours 3-5 mins 3 mins Highly customized, high Customized, high Increasing Full…
Leveraging Cytecs tailored specialty chemical formulations Mining market drivers Global economic growth Separation chemicals volumes increase while ore quality decreases Innovation to improve yields Cytecs key credentials Global…
The combination strengthens Solvays growth engines In Process Aerospace & Industrial Separation, Additives Materials Technologies Advanced Advanced Performance Functional Formulations Materials Chemicals Polymers Resilient…
Complementary technological know-how Aerospace thermoplastics Reduce Specialty order backlog Polymers TegracoreTM PPSU Foams Thermoformable LEAP high-bypass Lockheed Martin: Airbus twin aisle spoiler turbofan engine program ACCA…
Perfect fit with Solvays sustainability strategy Enhanced offering for Customers sustainability challenges Resource Constraints & Increased Sustainability Responds to more stringent regulatory Demand environment Broadens…
Over 100 m of recurring synergies identified Pre-tax synergies* General and Administrative 100m p.a. Supply chain and Procurement Excellence practices & culture, leveraging Cytecs Six-Sigma & Solvays Costs OEE1 expertise…
Cash offer at 75.25 per Share Offer value 28.9% premium to closing price on 28 July 2015 Enterprise value of US 6.4bn Multiple of 14.7x 2015 estimated EBITDA1 excluding synergies; 11.7x including synergies2 Cash merger requiring…
Financing framework strength and value US 5.8 bn Bridge financing arranged for 100% of needs Secure Contingent hedges for equity part of long term financing Protect Permanent Financing: Balance Caution & Value Target Financing…
Pro-forma financial highlights Solvay Contribution1 Cytec Contribution1 Sales ( bn) Improved growth potential 12.6 13.2 11.8 11.7 11.2 Portfolio further geared towards high growth markets Established track record 2012 2013…
Takeaways 24
Takeaways Propels Solvay to global 2 largest player in aerospace advanced composite materials Strengthens Solvays growth engines Improves Solvays sustainability offering & environmental profile Provides earnings momentum…
Perfect fit with Solvays strategy Focused on sustainability & value Platform to accelerate Solvays portfolio reshaping Group profile Growth Resilience Returns 26
Annexes 27
Cytec a leader in composites & specialty chemicals Key financials 2014 Revenues breakdown 2011-2015E CAGR By segment Revenue: +10%; EBITDA: +20% Additive Technologies 14% In process 2,088 Separation 20% 50% 1,935 2,008 1,708…
Cytec supplies everything needed to manufacture a carbon fiber reinforced thermoset composites part from prepregs Manufacturing of carbon fiber composites parts, using pre-impregnated sheets (prepregs) Process material Adhesives Carbon…
Cytec offers raw carbon fibers and various kinds of fabrics Common carbon fibers and carbon fiber fabric products Continuous tow carbon fiber Chopped carbon fiber Milled carbon fiber Standard Long fiber modulus (PAN) Short fiber High…
Cytec offers prepregs (sheets, slit tape or single tow tape) and resin infusion systems Composites products Prepregs sheets Slit tapes prepreg Single tow prepreg Resin infusion systems Resin Woven fabric: strength and Prepregged…
Cytec offers adhesives and surfacing films used by parts Compositesproducts Composites products Adhesives Surfacing films Surface Surface without when surfacing surfacing film film used Epoxy, phenolic and bismaleimide…
Cytec offers process materials for vacuum bagging and resin infusion Process materials products Typical vacuum bagging lay-up Process materials Vacuum bagging film Peel ply / release fabric Breather fabric or infusion…
Adding the 1 Mining Chemicals Business to Novecare A de-risked play on demand and declining grade ore 6,00 100% Average Copper Grade 3 95% 5,00 90% Copper Price 4 Average Copper Grade 85% 4,00 2003 Indexed 80%…
Novecare and Cytec have a similar phosphorus-based product portfolio, covering different applications Main Products End-applications Main products End applications Compounds for surface Promoters and solvent Thermal…
GLOSSARY REBITDA REBITDA is defined as operating result before depreciation and amortization, non-recurring items and non-cash Purchase Price Allocation (PPA) accounting impacts related to the transaction, Purchase price allocation…
CONTACT INFORMATION Maria Alcn-Hidalgo Lamia Narcisse Head of Investor Relations Head of Media Relations +32 2 264 1984 +33 1 53 56 59 62 E-mail : maria.alconhidalgosolvay.com E-mail : lamia.narcissesolvay.com Geoffroy Raskin…
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