Ilham Kadri Solvay CEO Meeting with Family Shareholders March 24, 2020
COVID-19 protect our people and secure business continuity March 23 Protect People Protect Assets Protect Customer 0 base Group task force, experts, Business Continuity Plans deployed • • Fatalities company doctors WW in the USA, France, Belgium, • Focus even more on cash and so far Spain, Portugal and other working capital management Nerve-center: country epicenter countries after successful • managers, site managers implementation in Asian countries • Protecting our business post-crisis and Italy wherever possible 0 Barrier precautions: hygiene, • cleaning, social distancing • Following up closely with our clients with regard to their Safety measures: manufacturing operations, • • mandatory teleworking potential shutdowns and the Site down wherever applicable impact on our own activity • large gatherings banned • remote meetings Assessing demand and adaptation • • upgrade site security of manufacturing/ protocols, i.e. t° screenings supply chain/workforce planning to serve our clients to the best of our abilities, while all operate safely 2 Family Shareholders March 24, 2020
12 months in review 2019 and short-term actions to sustain longer-term results New CEO Outlook ExCom Customer & measures reviewed twice Realignment Obsession Key account Polyamide Cash & Cost Stop Citylight projects management Divestment Discipline in Brussels & Lyon 3 Family Shareholders March 24, 2020
2019 results focus on cost, cash and customers in a challenging macro environment FCF to NET SALES UNDERLYING EBITDA Solvay shareholders EBITDA margin from continuing operations € 10 bn € 2.3 bn 23 % € 606 m -2% yoy -2.8% yoy stable yoy + € 40m yoy GHG Sustainable Occupational Societal emissions solutions accidents actions - 5 % 53 % - 18 % 47 % in % at constant +3% yoy yoy +14% yoy perimeter vs. Y-1 4 Family Shareholders March 24, 2020
12 months in review long-term actions to unleash longer-term results Core competencies G.R.O.W. Structure Culture & incentives Strategy Solvay ONE Purpose ESG Customer Innovation Solvay ONE Planet partnerships TPC platform Battery platform R&I Centers 5 Family Shareholders March 24, 2020
10 sustainability goals by 2030 Baseline 2018 Greenhouse gas emissions: Align its trajectory with “well below 2 °C -26% (-2%/y) Reduce the environmental temperature increase” (2015 Paris Agreement) impact of our operations at Coal phase out and no new coal plant: wherever renewable alternatives exist planetary scale: tackle Achieve 100% climate & biodiversity Biodiversity: reduce negative pressure on biodiversity beyond climate change: terrestrial acidification, water eutrophication, marine ecotoxicity CLIMATE 30% reduction Sustainable Solutions: increase the share of revenue in Sustainable Solutions Achieve 65% vs 50% measured by SPM Circular economy: increase the percentage of sales of products based on Achieve 15% vs 7% Accelerate the transition renewable or recycled resources toward circular business and operations models. Industrial waste: reduce non-recoverable industrial waste (landfill or incinerated 30% reduction without energy recovery) RESOURCES Water use efficiency: decrease the impact on freshwater withdrawal by 25% reduction reducing intake of freshwater Safety: a zero accident policy aiming to protect the safety and security of Aim for zero accident employees Improve the quality of life Inclusion and Diversity: Gender parity for mid- and senior-level management of our employees and the Parity vs 24% society at large by 2035 Extending maternity and paternity leave: Solvay is adapting its global policy BETTER LIFE of 14 weeks maternity leave to 16 weeks, extending it to co-parents inside the Extension to 16 weeks company regardless of their gender, by 2021. (by 2021) 6 | Family Shareholders March 24, 2020
2020 outlook return to growth in second half 0 % to - 3 % 28 % ~ 8 % UNDERLYING EBITDA FREE CASH FLOW ROCE Organically Conversion stable from € 2,322 million in 2019 Assumptions included in guidance : 737MAX build rate of ~200 in 2020 versus almost ~600 in 2019 (~30m to 40m FY impact) • COVID-19 virus uncertainty continues; assumes (~25m Q1) impact • Macroeconomic environment remains a headwind at least through first half in key markets including • auto, electronics, oil & gas As a result, first quarter expected to be down by high single-digits • 7 Family Shareholders March 24, 2020
Solvay’s resilience through history 1945-1975 2nd 1860-1914 1st Globalization Since 1989 3rd Globalization Globalization 2008-early 1929-1939 1970 Early 1990s Early 2000s 1873-1896 2010s Great Energy Global DotCom Long Depression Great depression crises recession bubble recession WWI WWII 8 Family Shareholders March 24, 2020
Investor Relations investor.relations@solvay.com Rue de Ransbeek, 310 1120 Brussels, Belgium Shareholders services shareholders@solvay.com Rue des Champs Elysées, 43 1050 Brussels, Belgium
Recommend
More recommend
