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FY 2014 results – Solvay

Solvay · Feb 26, 2015 · 71 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. FY 2014 results – Solvay – slide 1
    FY 2014 results FORENOTE All historic data are restated for comparison purposes, unless otherwise indicated. 2013 data for the Groups application of IFRS 11 February 26, 2015 effective January 1st 2014. 2013 and 2014 H1 data for…
  2. FY 2014 results – Solvay – slide 2
    Transformation momentum Portfolio upgrade 2014 Excellence delivery Dividend up Delivery Earnings growth More efficient capital structure Towards a higher growth, less cyclical & greater returns Group Q4 2014 results 2…
  3. FY 2014 results – Solvay – slide 3
    Portfolio reshaping: Redeployment for value Discontinued Operations Novecare Benvic Inovyn Chemlogics Erca Indupa Quimica Reducing Dhaymers Enhancing cyclical & customized low-growth Specialty Polymers solution businesses…
  4. FY 2014 results – Solvay – slide 4
    Enhancing growth potential, reducing cyclicality REBITDA in Growth Engines 52% +2% 54% +4% 58% 24% 29% 20% 34% 22% 36% 2012 2013 2014 11% 5% 6% 36% 41% 37% As published (restated for IFRS 11) Advanced Advanced…
  5. FY 2014 results – Solvay – slide 5
    2014, sustained delivery 10.2 bn +5% 1,783 m +11% Net Sales yoy REBITDA yoy Organic innovation-driven volume growth Sustained 2-digit growth throughout the year Strong Chemlogics contribution Margin up 90 bp to 17.5% Stable…
  6. FY 2014 results – Solvay – slide 6
    Sales boosted by innovation and successful business integration Net sales in m 349 44 10,213 North Europe 236 (132) 9,715 Price America Conversion Volume Scope forex 34% 5.1% 23% 2014 11% 32% FY 2013 FY 2014 Latin…
  7. FY 2014 results – Solvay – slide 7
    Robust REBITDA growth, margin expansion Net pricing REBITDA in m 81 m 38 (62) Excellence delivers 44 (57) 139 Variable 1,783 Price costs Fixed costs Innovation 85 (15) Others (including Drove volume & mix 9% equity…
  8. FY 2014 results – Solvay – slide 8
    REBITDA and margin up across all operational segments REBITDA 2014 (in m) Advanced Advanced Formulations Growth Engines Materials 23% 426 Innovation-driven growth 14% 709 347 624 FY 2013 FY 2014 FY 2013 FY 2014 14% 15% 22%…
  9. FY 2014 results – Solvay – slide 9
    Net income impacted by impairments and other exceptionals Adjusted* P&L Other elements linked to RusVinyl and M&A impacts RusVinyl (65) m: mainly ruble devaluation impact on euro debt in m FY 2014 FY 2013 Non-recurring costs Net sales…
  10. FY 2014 results – Solvay – slide 10
    Free cash flow and divestments leading to debt reduction Net debt* evolution in m Free Cash Flow 656 m (1,141) 1,351 (123) (20) (778) (861) 21 145 (332) Changes in 416 net debt Change in Other attributable industrial…
  11. FY 2014 results – Solvay – slide 11
    Selective investments for future value creation Capex 861 stable Continuing operations in m 734 In 2015 9 new facilities to start up Growth capex 50% growth capex Maintenance capex 70% of growth capex in Growth Engines Main growth…
  12. FY 2014 results – Solvay – slide 12
    Back to leading working capital performance Industrial working capital % of gross sales 15.8% 16.3% DSO* 15.6% 15.4% 15.2% 15.2% Overdues Average 2014 Average 2013 15% Inventory 15% management room for improvement…
  13. FY 2014 results – Solvay – slide 13
    Optimizing efficiency Preserving capital structure strength Capital structure (31/12/2014) Managing debt for value in bn Total equity in bn 6.8 Hybrid bond (3.6) 1.2 Other Gross (0.5) debt HY HY (2.3) bonds bonds 6.95% (2.3)…
  14. FY 2014 results – Solvay – slide 14
    Rewarding shareholders Delivery on commitments Gross dividend CAGR 5.3% Solvay dividend 2014 in /share Interim Paid on dividend 1.33* / share January 22, 2015 Dividend To be paid on 2014 balance 2.06* / share May 19, 2015…
  15. FY 2014 results – Solvay – slide 15
    Poised to capture growth opportunities Macro-economic growth stable Forex supportive* Volatility to persist Innovative solutions to deliver further Opportunities & challenges from low oil prices Sales: Tight oil market…
  16. FY 2014 results – Solvay – slide 16
    Accelerate transformation Continue portfolio upgrade 2015 Grow with our customers Priorities Maintain focus on excellence Sustain profit & value growth Sustain momentum Q4 2014 results 16 26/02/2015
  17. FY 2014 results – Solvay – slide 17
    Outlook 2015 Confident to sustain recent momentum Transformation levers continue to be deployed Portfolio, Excellence, Performance culture Currently in line with 2016 ambitions Q4 2014 results 17 26/02/2015
  18. FY 2014 results – Solvay – slide 18
    Take-aways Portfolio upgraded On track Excellence delivery 2016 Poised for growth Q4 2014 results 18 26/02/2015
  19. FY 2014 results – Solvay – slide 19
    Key dates May 6 Q1 2015 Results publication May 12 Annual General Meeting Brussels, Belgium May 19 Dividend pay-out Ex-dividend trading date on May 15, 2015 June 10-11 Capital Markets Day Italy July 29 Q2 & H1 2015…
  20. FY 2014 results – Solvay – slide 20
    Annexes Additional Q4 and FY 2014 financial data 2015 considerations Group presentation Q4 2014 results 21 26/02/2015
  21. FY 2014 results – Solvay – slide 21
    Strong Q4 results, in continuation of year performance 2.6 bn +9% 414 m +10% Net Sales yoy REBITDA yoy Margin at 16.1% (+22 bp) Organic volume growth Profit and margin improvement across all Small positive impact from forex and…
  22. FY 2014 results – Solvay – slide 22
    Sustained solid REBITDA growth in Q4, underpinned by volume and pricing power Net pricing Net Sales REBITDA in m in m 42 m 53 (10) 53 2,574 (56) 88 Variable 15 costs 69 Price 45 (15) Price 414 2,364 2 Volume Conversion Fixed…
  23. FY 2014 results – Solvay – slide 23
    Broad performance delivery across businesses in Q4 REBITDA Q4 2014 (in m) Advanced Advanced Strong Chemlogics Strong innovation- Formulations Materials and organic volume driven volume 33% growth at Novecare growth and 11% 109…
  24. FY 2014 results – Solvay – slide 24
    Advanced Formulations 2014 Q4 performance Strong Chemlogics and organic volume growth (+5%) at Novecare largely outweighed weak performance at Coatis Net sales (in m) REBITDA (in m) Novecare 34 12 731 15% 30 11 71% 644 13% margin…
  25. FY 2014 results – Solvay – slide 25
    Advanced Materials 2014 Q4 performance Strong innovation-driven volume growth and operational efficiency Net sales (in m) REBITDA (in m) Specialty Polymers 20 82 11 721 26% 603 6 54% margin 24% Conversion Price Scope forex…
  26. FY 2014 results – Solvay – slide 26
    Performance Chemicals 2014 Q4 performance Underpinned by reduction of costs and forex tailwind Net sales (in m) REBITDA (in m) Soda Ash & Derivatives 731 1 8 (8) 28 759 47% 25% margin 25% Scope Conversion Volume Price forex 759…
  27. FY 2014 results – Solvay – slide 27
    Functional Polymers 2014 Q4 performance Performance improvement by excellence delivery Net sales (in m) REBITDA (in m) Polyamide 4.1% 98% margin 384 (36) 2 363 3.4% 6 7 Scope Conversion Volume Price 363 m forex 13 15 2%…
  28. FY 2014 results – Solvay – slide 28
    Corporate & Business Services performance Tight cost control maintained, phasing as anticipated REBITDA Q4 2014 (in m) REBITDA 2014 (in m) 2013 2014 2013 2014 (72) Energy Services 3 7 Energy Services 54 25 (188) (54) Other C&BS…
  29. FY 2014 results – Solvay – slide 29
    Solvays share in net income at 208 m Adjusted* P&L Other elements RusVinyl (58) m: mainly ruble devaluation impact on euro debt in m Q4 2014 Q4 2013 Non-recurring costs Net sales 2,574 2,364 Non-cash impairments (144) m on RusVinyl…
  30. FY 2014 results – Solvay – slide 30
    Factors impacting Balance sheet Net income in m FY 2014 FY 2013 in m 31/12/2014 31/12/2013 IFRS Net income, Group 80 270 Fixed assets 10,080 9,732 Rhodia PPA (after tax) 76 107 Investment & shares 545 734 Adj. net income, Group 156 378…
  31. FY 2014 results – Solvay – slide 31
    Strong reduction of Net debt in Q4 thanks to WC inflow and Eco Services divestment Net debt* evolution in m Free Cash Flow 542 m (1,665) 391 (318) 408 62 505 REBITDA, Capex provisions Change in & other industrial FCF of…
  32. FY 2014 results – Solvay – slide 32
    Cash flow statement in m Q4 2014 Q4 2013 in m FY 2014 FY 2013 Cash flow from operating Cash flow from operating 868 522 1,621 1,299 activities activities Cash flow from investing Cash flow from investing 161 (1,183) (650) (1,745)…
  33. FY 2014 results – Solvay – slide 33
    Stable pension cash outflows, net pension liability impacted by lower discount rates Pensions (31/12/2014) Cash contribution stable at (180) m in 2014 in bn Net pension liabilities Pension Discount rates* decreased in 2014 (3.0)…
  34. FY 2014 results – Solvay – slide 34
    Annexes Additional Q4 and FY 2014 financial data 2015 considerations Group presentation Q4 2014 results 35 26/02/2015
  35. FY 2014 results – Solvay – slide 35
    REBIT(DA) considerations for 2015 Forex impact REBITDA adjustments Forex tailwind expected at prevailing rates RusVinyl JV Immediate impact on conversion exposure Consolidated through Equity associates Adjusted for financial charges…
  36. FY 2014 results – Solvay – slide 36
    Significant forex tailwind expected at prevailing rates Forex exposure Exposure to USD Conversion: No cash effect / no Sensitivity of 100 m per US (0.10) / coverage provided Half conversion, half transactional Transactional: Typical…
  37. FY 2014 results – Solvay – slide 37
    Financials and tax considerations for 2015 Net debt charges Hybrid bond Gross debt repayments to come Nominal value of 1.2 bn (500) m in June 2015 Initial average dividend yield of 4.7% Net debt charges expected at (100) m 0.7 bn at…
  38. FY 2014 results – Solvay – slide 38
    Other considerations for 2015 Non-recurring elements Cash flow Comprises FCF fluctuations Restructuring costs Cash expenses for pensions of (200) m Impairments (not under discontinued operations) Sustained capex efforts ( (861) m in…
  39. FY 2014 results – Solvay – slide 39
    Annexes Additional Q3 and Q3 YTD 2014 financial data 2015 considerations Group presentation Q4 2014 results 40 26/02/2015
  40. FY 2014 results – Solvay – slide 40
    Solvay, a major global chemical player Based on strengths 10.2 bn 119 Net Sales Industrial sites Well-balanced geographical spread and end-user markets 1.8 bn 15 REBITDA Major R&I centers Leading player in 90% of our…
  41. FY 2014 results – Solvay – slide 41
    Well-balanced geographical spread and end-user markets Balanced Exposure to geographical exposure* higher growth end-markets* Automotive & North Aeronautics Consumer goods America Europe & Healtchcare 18% 23% 34% 26% Energy &…
  42. FY 2014 results – Solvay – slide 42
    Strong innovation portfolio aligned with global megatrends Focused innovation fields 2014 15 Major R&I sites worldwide 1,950 Climate Resource R&I staff Advanced change scarcity Renewable materials chemistry 287 m Health & Next…
  43. FY 2014 results – Solvay – slide 43
    Focused on being a model of sustainability with commitments Reach excellence in safety & health Deploy unmatched sustainable portfolio Planet management Reduce our environmental impact by 2020 Customers Energy consumption Water…
  44. FY 2014 results – Solvay – slide 44
    Organization set-up Executive Committee Strengthened Corporate Advanced Advanced Performance Functional & Business Formulations Materials Chemicals Polymers Services Strategic Growth Resilient cash Restoring Efficient…
  45. FY 2014 results – Solvay – slide 45
    Organized in Operating segments and Global Business Units Advanced Formulations Functional Polymers Corporate & Business Services Performance Chemicals Advanced Materials Novecare Specialty Soda Ash & Polyamide Solvay…
  46. FY 2014 results – Solvay – slide 46
    Advanced Formulations 2014 figures 2,854 m 426 m 15% Net Sales REBITDA Margin Aroma Novecare Coatis Performance As one of Solvays growth engines, the businesses 71% grouped under Advanced Formulations stand out for Novecare…
  47. FY 2014 results – Solvay – slide 47
    Novecare Continuous growth in fast growing regions and segments North America Europe Broad portfolio 12 production sites 7 production sites in selected (1 in construction) 4 R&I centers 12 R&I centers end markets Home & Personal…
  48. FY 2014 results – Solvay – slide 48
    Novecare Cutting-edge technologies in diversified focused markets SELECTED MARKETS Home & Agro Oil & Gas Coatings Industrial TECHNOLOGY Personal Care 51% SURFACTANTS 24% POLYMERS PHOSPHOROUS 11% DERIVATIVES SPECIALTY…
  49. FY 2014 results – Solvay – slide 49
    Coatis Sustainable solvents solutions provider and leading Latin American player of phenol Multiple applications for phenol and oxygenated solvents 8% 10% 3% Net Sales 2014 79% Latin America Asia & RoW 1 production site 1…
  50. FY 2014 results – Solvay – slide 50
    Aroma Performance Worlds largest Diphenols & Fluoroaliphatics integrated producer serving customers growth and innovation North America Europe 1 production site 3 production sites 1 R&I center Vanillin ingredients for Food,…
  51. FY 2014 results – Solvay – slide 51
    Advanced Materials 2014 figures 2,762 m 709 m 26% Net Sales REBITDA Margin Specialty Rare Earth Special Polymers Silica Systems Chemicals A leader in markets with high entry barriers and strong 54% Specialty Polymers returns on…
  52. FY 2014 results – Solvay – slide 52
    Specialty Polymers Innovation leader with broadest product portfolio Diversified end markets Electricals with superior & Electronics North America Europe growth potential 8 production sites 7 production sites 3 R&I sites 4 R&I…
  53. FY 2014 results – Solvay – slide 53
    Specialty Polymers Focused on the most advanced products Temperature resistance Chemical inertness Price Performance Weathering resistance Corrosion protection Water repellence Stain repellence Electrical inertness…
  54. FY 2014 results – Solvay – slide 54
    Specialty Polymers Unique solution offering to customers differentiates Solvay from competitors High-barrier X-linkable Aromatics Aromatics Fluoropolymers Fluoropolymers polymers compounds LCP HPPA PPS PEEK PAI PSU PTFE PVDF PFA…
  55. FY 2014 results – Solvay – slide 55
    Silica Growth through innovation for sustainable mobility HDS (Highly Dispersible Silica) North America Europe for fuel-efficient & 1 production site 3 production sites (1 in construction) performance tires 2 R&I centers 41%…
  56. FY 2014 results – Solvay – slide 56
    Silica Highly Dispersible Silica (HDS) delivers value to the tire industry Excellent technical performance growing across a number of applications Rolling Resistance In passenger car and light trucks 125 + 25% 120 Energy-efficient…
  57. FY 2014 results – Solvay – slide 57
    Rare Earth Systems Best value capturing business portfolio in rare earth chemicals North America Europe 1 production site 1 production site Sales, R&I & 1 R&I center 1 R&I center 1 industrial rare earth footprint close to 30%…
  58. FY 2014 results – Solvay – slide 58
    Special Chemicals Leader in fluor chemistry and selected electronic applications North America Europe 1 production site 10 production sites 1 R&I center Multiple end markets 41% Foam for insulation Net Sales 29% 2014 26%…
  59. FY 2014 results – Solvay – slide 59
    Special Chemicals Executing strategic repositioning through increased focus in selective segments Leverage our distinctive knowledge in Fluor by reinforcing innovation for applications in agro, healthcare, Aluminum brazing and…
  60. FY 2014 results – Solvay – slide 60
    Performance Chemicals 2014 figures 2,944 m 724 m 25% Net Sales REBITDA Margin Soda Ash & Emerging Derivatives Peroxides Acetow Biochemicals Operating in mature resilient markets, this Segments Soda Ash 47% success is based on…
  61. FY 2014 results – Solvay – slide 61
    Soda Ash & Derivatives Resilient cash generator for the Solvay Group North America Europe Soda ash 2 production sites 7 production sites in many applications 3 R&I centers Flat glass 45% Net Sales 24% 2014 19% Container…
  62. FY 2014 results – Solvay – slide 62
    Soda Ash & Derivatives Cost is a key success factor in the soda ash industry Average FOB cash cost Natural Synthetic process process Freight & logistics costs Production costs EU 1st CIS North East Asia Turkey…
  63. FY 2014 results – Solvay – slide 63
    Soda Ash & Derivatives European soda ash supply/demand improved 2014-2016 2017-2019 Restructuring started with Kazan project closure announcements Potentially adding 2.5 mt/yr production Solvay Povoa (0.2 mt/yr) capacity Tata…
  64. FY 2014 results – Solvay – slide 64
    Peroxides Market & technology leader in global peroxides market Balance between North America Europe 2 production sites 9 production sites commodity markets (1 HPPO*) and selected 2 R&I centers end-markets Propylene Oxide…
  65. FY 2014 results – Solvay – slide 65
    Acetow Leading the market with quality and innovation Products North America Europe 1 production J/V 2 production sites 1 R&I center 35% 1% Net 12% Sales 2014 Cellulose acetate flakes Cellulose acetate tow 52%…
  66. FY 2014 results – Solvay – slide 66
    Emerging Biochemicals Leader in bio- based epichlorohydrine, vinyls and caustic soda in South East Asia Vinyl applications Europe 1 R&I center Films Sheets Net Sales 2014 100% Asia & RoW Pipe & fittings Wires & cables…
  67. FY 2014 results – Solvay – slide 67
    Functional Polymers 2013 figures 1,654 m 111 m 6.7% Net Sales REBITDA Margin Polyamides & Engineering PVC Intermediates Fibras Plastics Compounds The key success factor of this Segment, which primarily 93% groups the Polyamide…
  68. FY 2014 results – Solvay – slide 68
    Polyamide Integrated polyamide player 3 business units Europe 7 production sites 2 R&I centers 48% Net Polyamide & Intermediates 4% Sales 2014 15% 33% Latin America Asia & RoW 4 production sites 3 production sites 3…
  69. FY 2014 results – Solvay – slide 69
    Corporate & Business Services 2014 figures (188) m REBITDA Other Corporate Energy Services & Business Services This Segment includes the Solvay Energy Services business which delivers energy optimization programs both within…
  70. FY 2014 results – Solvay – slide 70
    Executing a clear value creation strategy Towards a higher growth, less cyclical & greater returns Chemical Group Targeting Sustainable Value Growth Q4 2014 results 71 26/02/2015
  71. FY 2014 results – Solvay – slide 71
    THE FIRST ROUND-THE-WORLD SOLAR FLIGHT: www.solvay.com IMMINENT TAKE-OFF Feedback expected by end March 2015

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