Solvay accelerates transformation momentum and unleashes value
• Accelerating transformation through portfolio upgrade and excellence measures
• Anticipating and delivering solutions that meet customers’ sustainability challenges
• Improving growth, returns and resilience
• Confirming 2016 financial targets
Bollate, Italy, June 10, 2015 --- Solvay is holding a Capital Markets Day to update investors and analysts on its strategy and performance. Solvay reaffirms the strategic direction and 2016 financial targets it set in 2013, and discusses its progress since.
“Solvay is forging ahead with its transformation to increase its growth, returns and resilience,” said Jean-Pierre Clamadieu, Chief Executive Officer of Solvay. ”At the heart of our strategic choices are the key megatrends of constrained resources, changing demographics and accelerating innovation. In providing the solutions that anticipate and address our customers’ sustainability challenges we create value for them and for Solvay. Our transformation progress, in terms of portfolio and operational results, enables us to confirm our 2016 financial targets.”
Solvay confirms its target to grow REBITDA by an annual average of 10% for the three years from 2013. At this rate, REBITDA should reach €2.3 billion to €2.5 billion in 2016 at current Group perimeter, that is, even after the Eco Services sale, and at current market conditions. It also confirms that CFROI* should increase at least 100 basis points by 2016, with a continued focus on cash conversion and on returns. Due to the strong delivery so far of its excellence programs in operations, commercial activities and innovations, Solvay estimates they will contribute €800 million to REBITDA in 2016 instead of €670 million as previously forecast.
Solvay has been upgrading its portfolio, and will continue to do so, through divestments, including its European chlorovinyls activities, as well as through disciplined investments mainly in its growth engines. Acquisitions complete our market-specific offerings, such as Ryton® and Flux® in automotive, and selective capital investments focus on new growth opportunities, capacity expansion and efficiency improvement.
The event, which includes presentations on Solvay’s businesses Novecare, Peroxides, Soda Ash & Derivatives and Special Chem, is hosted at the headquarters of Specialty Polymers, a star performer within the Advanced Materials “growth engine” segment. Specialty Polymers is exemplary in its agility to innovate for customer needs, pushing the limits of metal replacement, creating new markets and generating superior growth. Its industry-leading products include innovative applications for smart devices, and new classes of materials for light-weighting, electrification and powertrain efficiency, all contributing to CO2 emissions reduction in transportation. Specialty Polymers has the attributes to enhance its contribution to the Group’s value-creative growth in the next years.
* CFROI = Cash Flow Return on Investment; progression versus YE 2012
As an international chemical group, SOLVAY assists industries in finding and implementing ever more responsible and value-creating solutions. Solvay generates 90% of its net sales in activities where it is among the world's top three players. It serves many markets, varying from energy and the environment to automotive and aeronautics or electricity and electronics, with one goal: to raise the performance of its clients and improve society's quality of life. The group is headquartered in Brussels, employs about 26,000 people in 52 countries and generated 10.2 billion euros in net sales in 2014. Solvay SA (SOLB.BE) is listed on EURONEXT Brussels and EURONEXT Paris (Bloomberg: SOLB:BB - Reuters: SOLB.BR).