In This Article:
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Mid-term annual growth potential for underlying EBITDA of 6 to 9% organically, and for free cash flow to shareholders of 10 to 15%;
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Greenhouse Gas Emission (GHG) commitment, expressed in absolute terms, more than offsetting the anticipated business growth impact
Brussels, September 24, 2018 --- Solvay will today update investors in London on its portfolio, and illustrate the key markets and key levers that will enable the Group to deliver superior and sustainable value growth.
"Under Jean-Pierre`s leadership, Solvay is now a leading advanced materials and specialty chemicals company," said Nicolas Boël, Chairman of Solvay`s Board of Directors. "After a thorough search process, we expect to be in a position to announce the appointment of a new CEO in the next few weeks. The new CEO`s primary mission will be to unleash the potential of what we have built and to create further sustainable value for all stakeholders. "
"Solvay`s profound transformation has delivered strong profits, cash and returns. Looking ahead, Solvay will leverage on its differentiated technologies and its simpler, customer-focused organization to continue to innovate and generate superior growth," said Jean-Pierre Clamadieu, Chief Executive Officer of Solvay. "We have also set CO2 reduction targets in absolute terms, ensuring that our growth does not come at the expense of the planet, and placing us at the forefront of the chemical industry."
Solvay`s mid-term growth potential over 2019-2021 for organic underlying EBITDA is 6 to 9% on average per year and is based on:
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6 to 10% growth potential in Advanced Materials, driven by leading market positions and unmatched combination of high-performance polymer and composite technologies, which offer solutions for next generation mobility, mainly to improve energy efficiency of aircraft and cars;
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6 to 10% growth potential in Advanced Formulations, driven by leading market positions and tailored surface chemistry solutions mainly to improve resource efficiency in mining, oil & gas and agro, while minimizing the environmental impact;
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2 to 6% growth potential in Performance Chemicals, based on recovery in the soda ash business, reflecting its global leadership with world-class assets.
Free cash flow to Solvay shareholders has the potential to grow by 10 to 15% on average per year. Continued disciplined capital spend and lower financial charges from expected deleveraging should contribute to the strong growth.
Cash Flow Return On Investment (CFROI) has the potential to increase 50 to 100 basis points over the next three years, cementing returns firmly in the value creation zone, a level that was reached in 2018 for the first time in more than a decade.