Solvay delivers on strategy to create value from sustainable chemistry
(Thomson Reuters ONE) -
- In-depth ongoing transformation focused on higher growth, lower capital
intensity, greater returns
- Leveraging key value-creation drivers: dynamic portfolio management, organic
growth, strong culture of excellence and innovation focused on sustainable
chemistry
- 2016 REBITDA guidance of ?2.3 billion - 2.5 billion, representing double-digit
average annual growth, reflecting changes in portfolio and macro-economic
environment, CFROI to increase by over 100 basis points
Brussels, November 27th, 2013 --- Solvay at its Capital Markets Day in London
presents its ongoing transformation to strengthen its business profile and
confirms its strategy and vision, targeting higher growth, better returns and
lower capital intensity. Over the past 18 months, the Group has reshaped its
portfolio of activities enabled by a new organisation fostering an agile and
entrepreneurial culture.
"The continued divergence of regional macroeconomic drivers and shifts in
industrial competitiveness linked to energy costs are tilting investment
decisions mainly in favour of Asia and North America. For Solvay, this context
provides great opportunities to convert its vision into value," said Jean-Pierre
Clamadieu, Chief Executive Officer of Solvay. "Our transformation is well
advanced: the Group we present today is clearly different from the one we
presented last year. Capitalizing on its strengths, its culture of excellence
and enhanced business portfolio, Solvay expects to deliver annual double-digit
REBITDA growth on average in the next three years and to outperform the market
while significantly increasing capital returns."
Solvay has built capability to seize opportunities with its Consumer Chemicals
and Advanced Materials growth engines. It has also launched breakthrough
excellence measures to fuel sustainable cash generation at its resilient segment
Performance Chemicals and to restore profitability of the Functional Polymers
segment.
Among the main elements of its portfolio management, Solvay has bolstered its
growth potential with the acquisition of U.S.-based Chemlogics, creating an
extensive portfolio of tailored chemical solutions for the fast-growing oil and
gas market. Moreover, Solvay has progressed in its plans to reduce exposure to
the chlorovinyls business with a joint venture project in Europe and a
divestment of its vinyls activity in Latin America, lowering cyclicality in its
portfolio.
These moves allow Solvay to reposition itself towards a less asset-intensive and
more sustainable business model. In addition, Solvay is rebalancing its
geographical presence in Europe, Asia and the Americas and enhancing its
exposure to various end-markets with superior growth potential.
Actions to increase profitability include Solvay's plan to reinforce its cost
leadership in soda ash with breakthrough competitiveness improvements at its key
European synthetic plants while expanding its best-in-class U.S. trona mining-
based operations. In addition, more than 100 major commercial and manufacturing
excellence programs spanning from energy to procurement and supply chain
efficiencies have been deployed across the Group. Excellence also applies to
Solvay's innovations addressing a number of challenges linked to sustainable
development. These innovations create new businesses, applications, growth
opportunities and improve Solvay's competitiveness.
With these developments and its growth levers in place, Solvay now expects its
REBITDA to reach between ?2.3 and ?2.5 billion euros by 2016. Solvay aims to
expand REBITDA margins to 18% and to improve its cash flow return on investment
(CFROI) by more than 100 basis points compared to 2012. REBITDA growth
will largely be driven by excellence initiatives, which should contribute ?670
million versus 2013 levels. Throughout this period, Solvay also plans to
selectively invest ?700 to ?800 million euros per year with more than two
thirds of these investments focused on the Consumer Chemicals and Advanced
Materials growth engines.
By asking more from chemistry, Solvay will create value for all of its
stakeholders.
+------------------------------------------------------------------------------+
|As an international chemical group, SOLVAY assists industries in finding and|
|implementing ever more responsible and value-creating solutions. The Group is|
|firmly committed to sustainable development and focused on innovation and|
|operational excellence. Solvay serves diversified markets, generating 90% of|
|its turnover in activities where it is one of the top three worldwide. The|
|group is headquartered in Brussels, employs about 29,000 people in 55 |
|countries and generated 12.4 billion euros in net sales in 2012. Solvay SA|
|(SOLB.BE) is listed on Nyse Euronext in Brussels and Paris (Bloomberg:SOLB:BB|
|- Reuters: SOLB.BR). |
+------------------------------------------------------------------------------+
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Source: Solvay S.A. via GlobeNewswire
[HUG#1746015]
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Datum: 27.11.2013 - 07:31 Uhr
Sprache: Deutsch
News-ID 320670
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