Solvay (EssentialCo) unveils its new strategy and 2028 financial
targets
Regulated / Inside information
Solvay (EssentialCo) unveils its new strategy and 2028 financial
targets
Highlights resilient cash generation and attractive
returns
Brussels, November 13, 2023 - 7:00 CET
Today marks a new era for Solvay and its stakeholders as it
looks to a future as a simpler, more focused company post the
Syensqo spin-off (subject to the approval by Solvay’s shareholders
at the Extraordinary General Meeting on December 8, 2023). Solvay’s
incoming management team will share its strategy, mid-term
financial targets and will confirm its sustainability commitments
at Solvay’s Capital Markets Day today.
The company is committed to delivering profitable growth,
resilient cash generation and attractive returns that will fuel all
relevant process innovation investment, as well as Solvay’s
endeavor to reach carbon neutrality by
2050.
Solvay’s ambition is to become THE industry leader, in both
scale and cost. It aims at maintaining a top-quartile position in
profitability and returns. Additionally, it confirms its commitment
to energy transition and reach carbon neutrality by 2050.
Mid-term targets to 2028
Solvay targets further build on a proven track record of
consistently delivering stable top-quartile industry margins, cash
generation and returns.
Specifically, Solvay’s 2028 targets are:
- Annual average organic underlying
EBITDA growth of mid-single digit (in %)
- Underlying EBITDA margin
expansion (in %) to mid-to-high 20s
- Total gross savings of €300
million annual run-rate
- Free cash flow conversion (in %)
exceeding mid-30s
- ROCE (in %) increasing to low
20s
Confirming One Planet climate commitments
Solvay confirms its climate commitments, driving towards Carbon
Neutrality by 2050 through its investment in Energy Transition.
Solvay’s specific 2030 targets include:
- -30% scope 1 & 2 GHG
emissions vs. 2021
- -20% scope 3 GHG emissions vs.
2021
- Coal Phase out where alternative
energy sources exist
Prioritizing shareholder distributions while maintaining
investment grade credit rating
Solvay opens this new chapter with a strong financial position
and an expected investment grade rating of BBB-. With its
disciplined capital allocation approach, Solvay highlights its
commitment to prioritize stable to increasing dividend for the use
of its cash after essential investments.
The presentation prepared for the Capital Markets Day is
available on Solvay’s website.
Financial advisors
In relation to the separation, BNP PARIBAS and Morgan Stanley
are acting as Financial Advisors and Lead ECM Advisors, Berenberg,
Deutsche Bank AG and J.P. Morgan SE are acting as ECM Advisors,
Bank Degroof Petercam SA/NV, BofA Securities Europe SA and Société
Générale are acting as Co-Advisors. STJ Advisors is acting as
Independent Equity Capital Markets Advisor to the Company.
Contacts
Media
relations |
Investor
relations |
Peter Boelaert +32 479 30 91 59
Laetitia Van Minnenbruggen +32 484 65 30 47 Kimberly King + 1 470
464 4336 media.relations@solvay.com |
Jodi Allen +1 609 860 4608
Geoffroy d’Oultremont +32 478 88 32 96 Vincent Toussaint +33 6 74
87 85 65 investor.relations@solvay.com |
About Solvay
Solvay, a pioneering chemical company with a legacy rooted in
founder Ernest Solvay's pivotal innovations in the soda ash
process, is dedicated to delivering essential solutions globally
through its workforce of over 9,000 employees. Since 1863, Solvay
harnesses the power of chemistry to create innovative, sustainable
solutions that answer the world’s most essential needs such as
purifying the air we breathe and the water we drink, preserving our
food supplies, protecting our health and well-being, creating
eco-friendly clothing, making the tires of our cars more
sustainable and cleaning and protecting our homes. As a
world-leading company with €5.6 billion in net sales in 2022 and
listings on Euronext Brussels and Paris (SOLB), its unwavering
commitment drives the transition to a carbon-neutral future by
2050, underscoring its dedication to sustainability and a fair and
just transition. For more information about Solvay, please visit
solvay.com or follow Solvay on Linkedin.
Important legal information This press release is for
informational purposes only and is not intended to, and does not,
constitute an offer or invitation to sell or solicitation of an
offer to subscribe for or buy, or an invitation to purchase or
subscribe for, any securities of Solvay or Syensqo SA/NV
(“Syensqo”), any part of the business or assets described herein,
or any other interests or the solicitation of any vote or approval
in any jurisdiction in connection with the transactions described
herein or otherwise, nor shall there be any sale, issuance or
transfer of securities in any jurisdiction in contravention of
applicable law. This press release should not be construed in any
manner as a recommendation to any reader thereof.This press release
is not a prospectus or other offering document for the purposes of
Regulation (EU) 2017/1129 of June 14, 2017 (as amended, the
“Prospectus Regulation”), and the allocation of shares of Syensqo
to Solvay’s shareholders as part of the contemplated partial
demerger of Solvay is expected to be carried out in circumstances
that do not constitute “an offer of securities to the public”
within the meaning of the Prospectus Regulation. Syensqo has
prepared a registration document which will become a constituent
part of Syensqo’s prospectus for purposes of the admission to
trading of Syensqo’s shares on the regulated markets of Euronext in
Brussels and Paris in connection with the partial demerger of
Solvay. The registration document is, and the other constituent
parts of the prospectus will be made, available to investors at no
cost on the corporate websites of Syensqo
(www.syensqo.com/en/investors/spinoff) and Solvay (www.solvay.com),
as well as at the registered office of Syensqo, at Rue de la Fusée
98, 1130 Brussels, Belgium. The approval of the registration
document, or any other constituent parts of the prospectus, by the
Belgian Financial Services and Markets Authority (the “FSMA”)
should not be understood as an endorsement of the shares of Syensqo
to be admitted to trading on the aforementioned regulated
markets.The distribution of this press release may be restricted by
law in certain jurisdictions and persons into whose possession any
document or other information referred to herein comes, should
inform themselves about and observe any such restriction. Any
failure to comply with these restrictions may constitute a
violation of the securities laws of any such jurisdiction.This
press release is directed solely to persons in the United Kingdom
who (i) have professional experience in matters relating to
investments, such persons falling within the definition of
“investment professionals” in Article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005, as
amended (the “Financial Promotion Order”) or (ii) are persons
falling within Article 49(2)(a) to (d) of the Financial Promotion
Order or (iii) other persons to whom an invitation or inducement to
engage in investment activity (within the meaning of Section 21 of
the Financial Services and Markets Act 2000) may lawfully be
communicated or caused to be communicated, (all such persons
together being referred to as “relevant persons”). This press
release is directed only to relevant persons and must not be acted
on or relied on by persons who are not relevant persons.
Cautionary statements concerning forward-looking
statementsCertain statements contained herein may be
forward-looking statements including, but not limited to, the
statements about the Partial Demerger, as well as other statements
that are predictions of or indicate plans, strategies, goals,
future events or intentions. In particular, these statements relate
to (and include data relating to) Solvay management’s business
strategies, capital expenditures and other investments, growth of
existing operations and expansion plans, its financial situation
and its cash flow, as well as forecasts, other future events,
trends or objectives and expectations concerning, in particular,
the markets in which it operates, its strategy, its growth and its
results. These statements involve risks and uncertainties because
they relate to events and depend on circumstances that may or may
not occur in the future. The statements in the presentation are
based upon various assumptions, many of which are based, in turn,
upon further assumptions. The statements are not historical facts
and should not be construed as a guarantee that the stated facts
and/or data will occur. Although Solvay believes that these
assumptions were reasonable when made, these assumptions are
inherently subject to significant known and unknown risks,
uncertainties, contingencies and other important factors which are
difficult or impossible to predict and are beyond its control. As
such, undue reliance should not be placed on such statements.
Should one or more of these risks and uncertainties materialize, or
should any underlying assumptions prove incorrect, or any other
factor impact those statements, the Solvay Group’s or Syensqo’s
actual results, plans, objectives and expectations, as well as the
timing and consummation of the Partial Demerger and related
transactions, may differ materially from those expressed or implied
in the forward-looking statements. The inclusion of such statements
should not be regarded as a representation that such results,
plans, trends or objectives will be achieved. Important factors
that could cause actual results, plans, trends and objectives to
differ materially from those expressed in such statements include,
among others, Solvay’s and Syensqo’s ability to satisfy the
necessary conditions to consummate the Partial Demerger, or that
the Partial Demerger will be completed, within the expected time
frame, on the expected terms or at all; Solvay’s ability to realize
the anticipated benefits of the Partial Demerger, in full or at
all; the expected tax treatment of the Partial Demerger; potential
uncertainty during the pendency of the Partial Demerger that could
affect Solvay’s financial performance; the possibility of
disruption, including changes to existing business relationships,
disputes, litigation or unanticipated costs in connection with the
Partial Demerger and related transactions; uncertainty of Solvay’s
or Syensqo’s financial performance and ability to succeed as
standalone publicly traded companies following completion of the
Partial Demerger; negative effects of the announcement or pendency
of the Partial Demerger and related transactions on the value and
future market price of Solvay’s or Syensqo’s securities as
standalone publicly traded companies and/or on their financial
performance; general economic factors, such as interest rate,
currency exchange rate fluctuations and changing market conditions;
competition, including technological advances, new products and
patents attained by competitors; challenges inherent in new product
research and development; the impact of business combinations,
divestitures and restructurings, including any reorganizations to
be carried out in connection with the contemplated transaction;
adverse litigation or government action, including related to
product liability claims; changes to applicable laws and
regulations, including tax laws and import/export and trade laws;
the impact of products withdrawals; regulatory approval processes;
the ability to implement its R&I projects and efforts; the
ability to capture any opportunities and market share growth from
its principal end-markets or the identified growth platforms, to
the extent realized; the ability to identify and invest in
value-creating projects and apply its value-based pricing model;
the ability to deliver on its strategic initiatives; and the
ability to improve efficiency in the use of its existing assets.
Solvay undertakes no obligation to publicly update or revise any of
these forward-looking statements, whether to reflect new
information, future events or circumstances or otherwise, except as
required by applicable laws and regulations.
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