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First Quarter2022 ResultsMedia presentationMay 4, 2022First Quarter 2022 Earnings
With you todayFirst Quarter 2022 EarningsIlham KadriKarim HajjarChief Executive OfficerChief Financial Officer
Q1 2022 performance hits new recordsNet sales 3.1 bnEBITDAFree cash flowROCEunderlyingcontinuing operationsreturn on capital employed 712 m Record level Record level 26% organically yoy,of which 20% attributableto pricing and 6% tovolumes 20.1% organically yoy 23.3% EBITDA margin 216 m Marking 3 years of positivecash generation Marking reinvestment cyclein growth and sustainability12.3% Record level Compared to 7.5% in Q12021 and 11.4% in FY2021Record EBITDA boosted by record sales, propelled by pricing actions that sustainedour margins and overcame inflationary costs, with a historical record ROCE.page 3First Quarter 2022 Earnings
Pricing momentum accelerated in 2022Variable costs price index developmentin million-44Solvay pricing evolutionin million-466-369 25 441 475 475m in price overcame 369m of inflationary costsFirst Quarter 2022 Earnings
Q1 2022 performance by segmentMaterials 21%Solutions 35% Specialty Polymers sales increased significantly to a newrecord, reflecting continued strong demand in all markets,and most notably automotive, batteries, medical devices,and electronics. Aerospace continues its recovery, driven by higherproduction of single-aisle aircrafts, yet continues to facesupply chain challenges. EBITDA margin at 29.4% supported by higher volumesand successful price actionsUnderlyingEBITDA 712m 20.1% Novecare increased significantly driven by pricing and volumegrowth in agriculture, coatings, and home & personal care. Special Chem saw higher sales in electronics that were partiallyoffset by lower auto sales due to the chip shortages. Technology Solutions growth was driven by higher volumes tothe mining industry and increased prices, offsetting inflationarycosts. Aroma Performance sales set a new record driven by significantprice increases and good demand in food, flavors andfragrance. Oil & Gas grew significantly driven by higher prices.Chemicals 15% EBITDA margin at 20.9%, further reflecting our price actions,cost reduction efforts, and portfolio. Soda Ash & Derivatives saw higher sales driven by strong demand andprice actions, fully offsetting rising raw material and energy costs Peroxides sales driven by strong demand in the pulp & paper market inNorth America supported by price actions Solid demand and volumes in Silica and Coatis, while price increases notyet fully offset rising costs. EBITDA margin at 26.9%, lower versus last year impacted by the energycosts inflationFirst Quarter 2022 EarningsCorporate & Business Services included in EBITDA and excluded from the pie chartFigures represent an organic year on year comparison
2022 Full-year outlook increasedEBITDAFree cash flowunderlyingcontinuing operationsto grow bymid-to-highsingle digitpreviously mid-single digitOrganic growthpage 6First Quarter 2022 Earningsto exceed 650 m
Investing in our climate transition36 energy transition projects-2.5 megatons ofCO2 annually, eq. oftaking 1.4 million carsoff the roadFirst Quarter 2022 Earnings
Renewable Materials& BiotechnologyReady to transform how chemistry is designedRenewable carbonBiotechnologyBiodegradability4th growth platform to:accelerate the delivery of keyinitiatives that will significantlyincrease the share of renewablecarbon in Solvay’s product offeringidentify and incubate new businessopportunities based on renewablecarbon and biotechnologypage 8First Quarter 2022 Earnings
We are ‘Fit’ and ready toChange the GameCHEMICALSEvery business is delivering 3,357mnet salesStrong financial foundation establishedResilient CASH 4.1bnnet sales in 2021Best-in-class business leadersSOLUTIONS Decisive, unified culture, with provenrecord in overcoming crises 3,838mnet salesGROWTHBold ESG ambitionsMATERIALS 2,903mnet salesFirst Quarter 2022 Earnings 6.0bnnet sales in 20219
Q&AFirst Quarter 2022 EarningsIlham KadriKarim HajjarChief Executive OfficerChief Financial Officer
Follow up with media.relations@solvay.comUsing street art to promote biodiversitySolvay partnered with the United Nations Decade for the Restoration of Ecosystems and the non-profit StreetArt for Mankind to produce the 40-meter-high mural in Brussels pictured on the front of this presentation. TheAlchemist depicts Mother Nature watching us as she tries to protect the natural world. It is the first of 50 muralsto be created worldwide over the next ten years to raise awareness about taking urgent action to restorebiodiversity.It was painted by Spanish contemporary urban artist Lula Goce, who is known for her huge, dark-coloredportraits with vibrant flowers and whose spectacular works of art can be found on walls, at art festivals and inFirst Quarter 2022 Earningsprominent art centers around the world. The mural was inaugurated on September 29, 2021.
Alchemist depicts Mother Nature watching us as she tries to protect the natural world. It is the first of 50 murals to be created worldwide over the next ten years to raise awareness about taking urgent action to restore biodiversity. It was painted by Spanish contemporary urban artist Lula Goce, who is known for her huge, dark-colored
