media presentation...2020/11/05 · page 3 2020 q3 results media presentation health and safety...
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2020 Q3 results
Media presentation
November 5, 2020
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2020 Q3 results media presentationpage 2
With you today
Ilham KadriCEO
Karim HajjarCFO
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2020 Q3 results media presentationpage 3
Health and safety firstColleagues infected with COVID-19
Jan. Apr. MayFeb.
Mar.
June July
Colleagues in quarantine
Jan. Apr. MayFeb. Mar.
June July
Reflecting the emergence of a second wave inEurope and North-America
Strengthen protection measures on production sites which continue to operate throughout the crisis
Teleworking is mandatory when the employee can work effectively from home
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2020 Q3 results media presentation
Solvay raises the bar on ESG
Q3 highlights on ESG and innovation
page 4
Innovation
● Stepping up on climate with suppliers and customers as part of the Science Based Targets Initiative
● Enhancing a circular future for hybrid and electric vehicle batteries
● Appointing Dr. Piot, the world-renowned Belgian microbiologist, as Honorary Chairman of Solvay Solidarity Fund
● Solvay offers two innovative products to counter COVID-19
● Solvay adopts new global "work from anywhere" policy
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2020 Q3 results media presentationpage 5
Q3 results
page 5
Strong cost reduction and record free cash flow
Free Cash Flow
● Sixth consecutive quarter of positive FCF
● Disciplined working capital management
Underlying profit
● Up from €109m in Q2
Underlying EBITDA Margin 22.5%
● Reduction in volumes ● Up sequentially by 7.7% vs Q2
thanks to disciplined cost actions
€366m€176m
€473m
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2020 Q3 results media presentationpage 6
9 months performance
page 6
Strong free cash flow despite demand headwinds
Free Cash Flowto shareholders, continuing ops
● More than double the prior year period
● Disciplined working capital
Net Sales
● Lower volumes in aero, auto, oil & gas and construction markets
● Some demand improvement in September
Underlying EBITDA Margin 21.9%
● Reduction in volumes ● Cost containment and positive
pricing
€801m€6.8bn
€1.5bn
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First nine months 2020 earnings
Performance and indicators by end market
page 7
End Market% Solvay annual
sales 2019 Solvay Q3 2020 trends
Building & Construction/Industrial 16% Demand improvement in flat glass for construction (Sept)
Automotive 14% Growth in EV battery applications & silica for tires (Sept)
Food/Agro/Feed 12% Growth in Agro; vanillin remains resilient
Home & Personal Care 8% Resilient demand for bio-based products + innovation
Civil Aerospace 7% Composite restructuring plans on track to mitigate civil decline
Electronics 5% Growth driven by semiconductors
Healthcare 4% Growth in various applications
Mining 4% Short-term impact¹ in sector
Shale Oil & Gas 4% Turnaround plan supports cost reductions
~75% ¹ impact from Covid-19 pandemic
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First nine months 2020 earnings
Outlook for full year 2020
page 8
Costs EBITDA* Cash
Cost savings of ~€300m gross,
including 50% structural cost reductions
Free cash flow around ~€900m
+50% vs 2019
*Barring further deterioration related to Covid-19; excluding scope and foreign exchange
In a range between €1,890 and €1,970m
Remain focused on cost, cash, and customers
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First half 2020 earningspage 9
Investing for the future
● New Hydrogen growth platform● Simplification journey
PortfolioPeople & Planet
PROFITOur talent, bolder ESG objectives and a simplified portfolio will deliver profit at the
service of customers, shareholders and society.
● Science Based Targets Initiative● Circular economy● New global “work from anywhere” policy● Appointment of Dr. Piot at the Solvay Solidarity Fund
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