invest in Solvay? Geoffroy Raskin Head of Investor relations - PowerPoint PPT Presentation

Why invest in Solvay? Geoffroy Raskin Head of Investor relations

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 a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals, regulatory approval processes, all-in scenario of R&D projects and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Dierickx Leys Funds 2 April 24, 2019

An Advanced and Specialty Chemicals company

Solvay ID >70% ~33% >50% specialty in each in GDP+ products region markets Created by Ernest Solvay in 1863, Solvay is today all Automotive & aerospace Advanced Materials Europe Electrical & electronics Advanced Formulations North America about advanced materials and Resources & environment Performance Chemicals Latin America Agro, feed & food specialty chemicals Asia & RoW Consumer goods & healthcare Building & construction Industrial applications € 2.2 bn € 10.3 bn Top 3 27,000 people 125 ind. sites underlying net sales EBITDA market 21 R&I sites position 1 62 countries 50% sustainable Margin 22% solutions 2013 2014 2015 2016 2017 2019 [2] Including discontinued 17 Acquisitions 34 Divestments operations [1] Applicable to ~90% of portfolio Dierickx Leys Funds 4 [2] Planned divestment of Polyamides April 24, 2019 Headcounts and number of sites include Polyamide business, accounted for in discontinued operations

We commit to answering mega trends Evolving demography Resource constraints Innovation and consumer behavior & demand for sustainability acceleration • • • New materials for smart cities Global warming and climate Information age & big data disruption • • Ever more connected people Acceleration of cycles • Green house gas emissions, product lifetime and • Innovations to drive next generation especially CO 2 innovation cycles mobility • • Resource scarcity Increased connectivity and mobility • Pollution and biodiversity loss Dierickx Leys Funds 5 April 24, 2019

Giving shape to a unique portfolio ADVANCED MATERIALS ADVANCED FORMULATIONS PERFORMANCE CHEMICALS 43% of Group sales 30% of Group sales 27% of Group sales Polymer & Surface & Soda ash & Composite Liquid Peroxides technologies chemistry Oil & Gas Mining Agro Electronics Aerospace Automotive Food Consumer goods Industrial Construction Healthcare Next gen mobility Resource efficiency ~50% of Group sales Customer intimacy & Innovation edge & Talents & Sustainable chemistry & Market leadership Technology portfolio Business culture Solutions Dierickx Leys Funds 6 April 24, 2019

Because our planet requires more sustainable mobility Doing more with less AUTOMOTIVE AEROSPACE BATTERIES Cleaner and more Enhanced Higher performance MORE energy-efficient lightweighting & fuel and energy storage mobility efficiency Reduce impact Reduce CO 2 Reduce cost LESS to environment emissions per kWh ~50% of Advanced Materials sales Dierickx Leys Funds 7 April 24, 2019

We make planes lighter & more efficient AERO 4.5 % 50 % >8,000 2 X Annual growth Record high Weight of composites Number of aircrafts expected in passenger traffic order backlog on new aircrafts vs <15% on legacy to double in 20 years BONDING & SURFACE MULTIFUNCTIONALITY COATINGS PRIMARY STRUCTURES SECONDARY STRUCTURES INTERIORS & GALLEYS ENGINES Dierickx Leys Funds 8 April 24, 2019

We make cars lighter & more efficient AUTO 2.4 % ~30 % CAGR light vehicles CAGR hybrid & plug-in production in 5 years electric vehicles in ten years STRUCTURAL & SEMI-STRUCTURAL PARTS INTERIORS THERMAL & AIR INSULATION MANAGEMENT SYSTEMS ENERGY-EFFICIENT ENGINE TIRES COMPONENTS EMISSIONS CONTROL EXTERIORS & CHASSIS BRAKING VEHICLE ELECTRIFICATION SYSTEMS Dierickx Leys Funds 9 April 24, 2019

We are positioned in all auto platforms, AUTO outpacing the industry growth by 3X [1] (P)HEV EV ICE+ ~ 12 kg ~ 8 kg ~ 6 kg Increasing loading per car [2] Internal combustion engine Transmission Performance drives value proposal Electrical engine Battery Opportunity for composites Chassis / functional parts Technology shift Big opportunity for Solvay For Solvay’s polymer & composite technologies [1] Dierickx Leys Funds 10 [2] Accessible market for Solvay polymer and composite technologies (excluding chassis / functional parts) April 24, 2019

Because resource constraints require more efficient solutions Doing more with less MINING OIL & GAS AGRO Higher throughput Maximize cost Targeted use MORE and yield of metals performance and of ingredients for & minerals fracturing efficiency seeds & crops Reduce impact Reduce Less clean to employees and environmental LESS water usage environment impact ~50% of Advanced Materials sales Dierickx Leys Funds 11 April 24, 2019

Innovation at our core with strong connections to advance science Steering open innovation & collaboration € 352 m effort 3.4% 264 patent applications R&I intensity 2,200 talents 21 R&I sites +100bp vs 2012 Ernest Solvay established first prestigious meetings of top 1911 Establishing world class R&I centers scientists* Yearly investing € 80 m in funds and start ups A worldwide network of researchers connected to academic partners Brussels Lyon Ben Feringa, 2015 Laureate * Standing left to right: Goldschmidt, Planck, Rubens, Sommerfeld, Lindemann, de Broglie, Knudsen, Hasenöhrl, Hostelet, Dierickx Leys Funds 12 Herzen, Jeans, Rutherford, Onnes, Einstein, Langevin April 24, 2019 Seated left to right: Nernst, Brillouin, Solvay, Lorentz, Warburg, Perrin, Wien, Curie, Poincaré

…in a sustainable way Contribute to society Among many initiatives, we Act worked with WBCSD to identify responsibly the SDGs most impacted by our industry Innovate sustainable solutions 2018 50% -1 Mt highlights GHG emissions absolute value Sustainable Solutions > Higher volume growth on average, higher social > Raising our ambition in absolute value to foster and environmental contribution to customer climate-friendly growth performance > Proactive engagement with key customers > Lower environmental impact in its production phase > Forefront of the chemical industry WBCSD: World Business Council for Sustainable Development Dierickx Leys Funds 13 April 24, 2019

2018 achievements

We delivered solid organic growth in 2018 vs 2017 Underlying figures + 5.7% + 5.3% + 12% Organic growth Organic growth Continuing operations Net Sales EBITDA Earnings per share + 6% + 4.2% Continuing operations Free Cash Dividend Flow Dierickx Leys Funds 15 April 24, 2019

Constantly focused to respect our commitments Delivery 2016 - 2018 2016 - 2018 -20% GHG Intensity -24% kg CO 2 eq. Emissions / € EBITDA Mid-to-high single digit EBITDA growth +7.5% Underlying % yoy 40% Sustainable solutions 50% % Group Sales -10 % Accident rate -30% Acc. with medical treatment / m working hours > € 2.4 bn Free Cash Flow € 2.7bn cumulative 75% Employee engagement 76% Index + 0.5 – +1.0 pp CFROI 25% Societal actions 33% +0.8pp % employees involved increase Dierickx Leys Funds 16 April 24, 2019

While creating value for Solvay’s shareholders Underlying EPS Free cash flow to Solvay Dividend shareholders (in € ) (in € ) 3.75 725 3.60 10.57 (in € m) 3.45 3.30 9.08 8.19 527 7.40 466 148 [1] 2015 PF 2016 2017 2018 2015 PF 2016 2017 2018 2015 PF 2016 2017 2018 +13% CAGR +70% CAGR +4.4% CAGR Dierickx Leys Funds 17 [1] Recommended dividend April 24, 2019

In 2019, we open a new chapter in Solvay’s history led by a new CEO Customer intimacy Operational Simplification excellence Ilham Kadri, CEO Excellence center Customer experience Employee Experience Since March 1, 2019 Dierickx Leys Funds 18 April 24, 2019

2019 outlook Free Cash EBITDA growth Flow Underlying at constant scope and forex  Modest EBITDA growth in FY 2019 [1]  Solid FCF, expected to continue to  Q1 broadly flat versus Q1 2018 [2] deleverage the balance sheet Organic growth, excluding scope & forex conversion effects, vs 2018 pro forma EBITDA of € 2,330m [1] Dierickx Leys Funds 19 Organic growth, excluding scope & forex conversion effects, vs 2018 pro forma EBITDA of € 558m [2] April 24, 2019