SOLVAY SA 
Dr. Ilham Kadri
CEO and President of the Executive
Leadership Team of Solvay
Third Quarter 2023 results
Karim Hajjar
CFO of Solvay
November 3, 2023
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.
This document does not constitute an offer to sell, or the solicitation of an offer to subscribe for or buy, any securities.
page 2 | Third quarter / First nine months 2023 Earnings |
Nine Months 2023 performance
€9.0 bn | €2.3 bn | €1.0 bn | 15.2% |
NET SALES | EBITDA | FCF | ROCE |
-9.6% | -1.2% | % | -0.2pp |
organic | organic | 39 | |
% | FCF | vs Q3 2022 | |
-13% volumes | conversion | ||
+4% pricing | 25.9 |
EBITDA margin
page 3 | Third quarter / First nine months 2023 Earnings |
Delivering on project milestones
Shareholders' meeting
Full-year 2022 results | Q1 2023 results |
Q2 2023 results
ELT and Board of directors announcements
November 3
Q3 2023 results
November 3
2022
Q1 | Q2 |
Q3
Q4
2023
Webinars
Automotive/Batteries
Consumers
Peroxides
Webinars
Soda Ash
Aero & Defense
Completed social consultations Rating agencies published targets Branding of companies launched FSMA approval of registration documents
Capital structures
Registration document SCo Information document ECo
H1 key figures ECo & SCo
Debt management
Tax rulings
Capital Markets Day
November 13
Extraordinary Shareholders' meeting
December 8
Listing of Syensqo on Euronext Brussels/Paris
December 11
Third quarter and nine months 2023 results
This timetable is indicative and reflects a likely scenario. ECo and SCo are not reflective of the future company names.
Investing in sustainable growth
EssentialCo
Sale of energy supply business
- Reduces Corporate costs volatility
- Strengthens balance sheet
SpecialtyCo
Plan confirmed to build largest EV materials facility in USA
- JV agreement with Orbia
- Commitment to sustainable mobility
Third quarter / First nine months 2023 Earnings
Third quarter 2023 performance
€2.7 bn | €702 m | €346 m | 15.2% |
NET SALES | EBITDA | FCF | ROCE |
-20.3% | -18.5% | % | -0.2pp |
organic | organic | 39 | |
% | FCF | vs Q3 2022 | |
-15% volumes | conversion | ||
-5% pricing | 25.6 |
EBITDA margin
page 6 | Third quarter / First nine months 2023 Earnings |
Materials Q3 2023
Q3 2023 (€m) | % YoY | % YoY organic | |
Specialty Polymers | 701 | -17.8% | -12.5% |
Composite Materials | 258 | -1.2% | +4.5% |
Net Sales | 959 | -13.9% | -8.5% |
EBITDA | 324 | -15.8% | -12.4% |
EBITDA Margin | 33.8% (-0.8pp) |
Q3 Highlights
- Sales in Specialty Polymers decreased due to lower volumes across most markets against a strong year-on-year comparison.
- Organic sales in Composite Materials higher driven by sustained aerospace demand. Sales growth was impacted by supply chain issues which limited deliveries in the quarter.
- EBITDA margin at remained strong at 33.8% or -0.8 percentage points versus last year
page 7
All figures rounded
Third quarter / First nine months 2023 Earnings Third quarter / First nine months 2023 Earnings
Solutions Q3 2023
Q3 2023 (€m) | % YoY | % YoY organic | |
Novecare | 325 | -36.3% | -31.4% |
Special Chem | 213 | -18.2% | -14.1% |
Techn. Solutions | 159 | -15.9% | -11.6% |
Aroma Performance | 82 | -43.9% | -40.5% |
Oil & Gas Solutions | 103 | -32.0% | -24.5% |
Net Sales | 882 | -29.8% | -25.0% |
EBITDA | 164 | -31.7% | -25.6% |
EBITDA Margin | 18.6% | ||
(-0.5pp) | |||
Q3 Highlights
- Novecare sales were lower due to demand in agro, construction and consumer markets.
- Special Chem came in lower due to lower volumes in electronics, partly offset by automotive, while prices were slightly positive year-on-year.
- Technology Solutions sales decreased due to lower volumes in mining from temporary disruptions at certain mines, and slightly offset by higher prices.
- Aroma Performance sales were down on continued lower demand and strong competition in the food, flavor & fragrance markets.
- Oil & Gas sales decreased driven by lower drilling activity in the United States following the decline in natural gas prices and higher competitive pressure.
- EBITDA margin slightly down year-on-year, but improving approximately 1 percentage point sequentially.
page 8
All figures rounded
Third quarter / First nine months 2023 Earnings Third quarter / First nine months 2023 Earnings
Chemicals Q3 2023
Q3 2023 | (€m) | % YoY | % YoY organic | |
Soda Ash & Deriv. | 478 | -23.9% | -22.9% | |
Peroxides | 149 | -31.4% | -29.0% | |
Coatis | 147 | -34.7% | -36.6% | |
Silica | 133 | -18.9% | -17.2% | |
Net sales | 908 | -26.6% | -25.8% | |
EBITDA | 274 | -12.0% | -3.8% | |
EBITDA Margin | 30.2% | |||
(+5.0pp) | ||||
Q3 Highlights
- Soda Ash & Derivatives sales lower due to reduced demand across most markets including construction, flat glass, and flue gas treatment. Prices were also lower as a result of lower energy costs.
- Peroxides sales decrease driven by continued weak demand in some markets such as textiles, electronics and the pulp & paper market. Prices decreased following the normalization of energy prices compared to high levels last year.
- Coatis sales lower due mainly to weak demand as well as competitive price pressure.
- Silica sales lower mainly from volumes in the tire market while margins were sustained.
- Lower variable and fixed costs more than offset the lower prices supported margin improvement in the quarter.
page 9
All figures rounded
Third quarter / First nine months 2023 Earnings Third quarter / First nine months 2023 Earnings
Structural cost reduction
2024 cost savings achieved 1.5 years ahead of time ✔
Realized in FY 2020
€175m
Realized in FY 2021
€213m
Realized in FY 2022
€79m
Realized YtD 2023
€63m
Total costs savings to date
€530m
Targeted annual run-rate by 2024
Permanent structural levers
- Restructuring: ~50% of total
- Indirect costs reductions: ~30%
- Productivity efficiencies: ~20%
€500m
page 10 | Third quarter / First nine months 2023 Earnings |
Third quarter / First nine months 2023 Earnings |
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Solvay SA published this content on 03 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2023 15:38:10 UTC.
