Press release (https://www.solvay.com/en/press-release/solvay-fourth-
quarter-and-full-year-2023-results)
Regulated information Solvay fourth quarter and full-year 2023 results
Solid financial performance thanks to the stronger first half, and robust
capital structure opening a new chapter of Solvay
Brussels, March 13, 2024 - 7:00 am CET
Highlights
* Solvay's FY 2023 financial statements reflect the Partial Demerger completed

    on December 9, 2023, with the Specialty businesses transferred to Syensqo
    classified as discontinued operations for 2023.
  * New Solvay leadership team fully committed to drive the transformation of
    the company.
  * Net sales for the full year 2023 at EUR4,880 million were down -12.6%
    organically versus 2022, driven primarily by volume declines. In Q4, net
    sales decreased organically by -18.9% from both lower volumes and prices.
  * Underlying EBITDA of EUR1,246 million for the full year 2023 was stable
    (+0.2%) on an organic basis compared to a record 2022, with positive Net
    Pricing and lower fixed costs offsetting the drop in volumes. EBITDA in the

fourth quarter was down -24.5% organically vs Q4 2022, fully driven by lower volumes, with variable costs reduction offsetting price erosion, while fixed

    costs decreased slightly.
  * Underlying net profit from continuing operations was EUR588 million in 2023
    compared to EUR740 million in 2022.
  * Free Cash Flow(1) of EUR561 million in 2023 (+17.3% vs. EUR479 million in 2022)
    resulting in a record FCF conversion ratio of 45.4%, thanks to the strong
    EBITDA performance and to the positive impact from working capital
    variation.
  * ROCE² was 20.4% in 2023, -2.5pp compared to 2022 as a result of lower
    profit.
  * Solid balance sheet at the end of December 2023, in line with the target

capital structure announced in November 2023, with an underlying net debt of EUR1.5 billion, which translates into a leverage ratio of 1.2x.
* Total proposed gross dividend of EUR2.43 per share, subject to shareholders'

    approval during the next Ordinary General Meeting of May 28, 2024.
  * Solvay continues to reduce its GHG emissions (-19% vs 2021, scope 1 and 2).
  * 2024 Outlook: Organic growth of the underlying EBITDA of -10% to -20%

compared to restated 2023; Free cash flow of minimum EUR260 million (see page

    4 of the press release for important information)
                             Fourth quarter                 Full year

Underlying (in EUR

 million)             2023  2022  % yoy  % organic 2023  2022  % yoy  % organic
 Net sales            1,131 1,359 -16.8%    -18.9% 4,880 5,539 -11.9%    -12.6%

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EBITDA 238 335 -28.8% -24.5% 1,246 1,359 -8.3% +0.2%
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EBITDA margin 21.1% 24.6% -3.6pp - 25.5% 24.5% +1.0pp -
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FCF 8 -19 n.m. 561 479 +17.3%
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FCF conversion ratio
(LTM) 45.4% 36.5% +8.9pp
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ROCE 20.4% 22.9% -2.5pp
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Philippe Kehren, Solvay CEO
"Solvay is well positioned for its new chapter. We approach it with clear
objectives and determination to achieve them.
In 2023, despite macroeconomic challenges, we recorded high-quality results and
I want to express my gratitude to all Solvay employees for this achievement. I
also take this opportunity to thank all the teams, both at Solvay and Syensqo,
who worked so hard on making the Partial Demerger a success.
Solvay already started to deploy its new strategy, supported by a solid balance
sheet and a clear cash usage prioritization. I'm also very pleased with the
significant progress we are making in our ESG roadmap and we remain committed to
executing our energy transition, recognizing its critical importance for the
planet, our communities, our customers and our competitiveness. As we look ahead
into 2024, the macroeconomic environment remains uncertain, yet we view the
future with confidence as we deploy our new operating model and carefully invest
to deliver on our promises."
2024 outlook
Across its product portfolio, Solvay expects current demand levels to continue
over the next few months and, as such, expects H1 2024 volumes to be broadly in
line with H2 2023. At this point, there is little visibility on the second half
of the year, however there are signs that the trend in the second half could
improve. Solvay expects Soda Ash prices over FY 2024 to be lower than FY 2023,
consistent with the current market environment, which will affect the business
margin in 2024. Pricing trends across Solvay's other businesses are forecasted
to be more resilient year on year.
Lower energy and raw materials prices should offset some of the negative
pressure on the topline. More importantly, Solvay has started to implement cost
savings initiatives that will start to deliver results in 2024.
For full year 2024, Solvay expects an organic growth of the underlying EBITDA by
-10% to -20% versus a high comparison base in 2023, especially in H1. This
translates into a range of EUR925 million to EUR1,040 million at a 1.10 EUR/USD
exchange rate.
The organic growth of the underlying EBITDA is calculated from a 2023 restated
figure of EUR1,154 million (vs a reported figure of EUR1,246 million).
Free cash flow to Solvay shareholders from continuing operations is expected to
be greater than EUR260 million, in line with the cash usage prioritization
presented during the Capital Market Day in November 2023. It is supported by
Solvay's ability to manage its capex and working capital to ensure the financing
of its businesses and the payment of dividends while keeping the strength of its
balance sheet intact.
Solvay remains fully committed to implement its strategic roadmap and reconfirms
its 2028 targets as communicated at the Capital Markets Day of November 2023.
(1) Free cash flow (FCF) is the free cash to Solvay shareholders from continuing
operations.
(2) ROCE calculated with Capital employed as the average of the situation at the
beginning and at the end of the year (using Pro Forma information for 2022 and
2021) instead of the average of the situation at the end of the last 4 quarters.
Safe harbor
This press release may contain forward-looking information. Forward-looking
statements describe expectations, plans, strategies, goals, future events or
intentions. The achievement of forward-looking statements contained in this
press release is subject to risks and uncertainties relating to a number of
factors, including general economic factors, interest rate and foreign currency
exchange rate fluctuations, changing market conditions, product competition, the
nature of product development, impact of acquisitions and divestitures,
restructurings, products withdrawals, regulatory approval processes, all-in
scenario of R&I projects and other unusual items. Consequently, actual results
or future events may differ materially from those expressed or implied by such
forward-looking statements. Should known or unknown risks or uncertainties
materialize, or should our assumptions prove inaccurate, actual results could
vary materially from those anticipated. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
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 EUR4.9 billion in net sales in 2023 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 (http://www.solvay.com/) or follow Solvay
(https://www.linkedin.com/company/solvay/) on Linkedin.
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