Strong FCF supported by resilient EBITDA and discipline on costs and capex
Brussels, May 7, 2024 - 7:00 am CEST - regulated information
Highlights
* Net sales for Q1 2024 at EUR1,201 million were down -11.9% organically versus

    Q1 2023, with positive volume impact, for the first time in seven quarters,
    in both Basic and Performance Chemicals segments. Prices decreased, mostly
    reflecting the lower energy and raw material costs.
  * Underlying EBITDA of EUR265 million for the first quarter was -13.6% lower
    organically compared to a high Q1 2023, with negative Net Pricing partially
    offset by positive volume impact and lower fixed costs. The EBITDA margin
    remained solid at 22.1%, and improved sequentially.

* First cost savings initiatives are already bearing fruit, with EUR19 million

    achieved in Q1 2024.
  * Underlying net profit from continuing operations was EUR119 million in Q1
    2024 vs. EUR187 million in Q1 2023.
  * Free Cash Flow(1) was strong at EUR123 million in Q1 2024, from resilient
    EBITDA combined with discipline on working capital, costs and capex.
  * ROCE was 19.8% in Q1 2024.
  * Successful inaugural EUR1.5 billion bond issuance to refinance the bridge
    facility set up at the end of 2023, in relation to the partial demerger,
    bringing additional strength and stability to the balance sheet.
  * Underlying Net Debt at EUR1.6 billion, implying a leverage ratio of 1.4x.
  * 2024 Outlook: Organic growth of the underlying EBITDA of -10% to -20%
    compared to restated 2023; Free cash flow greater than EUR260 million
                            First quarter
  Underlying (in EUR million)   2024    2023    % yoy    % organic
  Net sales                   1,201   1,355   -11.3%      -11.9%

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EBITDA 265 365 -27.2% -13.6%
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EBITDA margin 22.1% 26.9% -4.8pp -
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FCF(1) 123 -130 n.m. -
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ROCE 19.8% N/A n.m. -
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Philippe Kehren, Solvay CEO
"I'm proud of our performance in the first quarter, despite challenging
macroeconomic conditions, as we focused on what is under our control: capex,
costs and cash. Certain areas of our business have shown promising momentum
compared to the trough from late 2023, but we cannot call it a recovery yet. We
are rapidly deploying cost-saving initiatives that have already started to
deliver. Looking ahead, we maintain confidence in meeting our targets for 2024.
Our simplified portfolio, clear operating model and strong focus on cash are
great assets to position Solvay for sustained success in the years to come."
2024 outlook
In the first quarter of 2024, while Solvay benefitted from slight volume pick-up
in some of its businesses, management has maintained a strong focus on costs and
cash. Looking ahead, the company is confident that it can keep its fixed costs
under control. Despite green shoots in some segments in Q1, soft demand combined
with a volatile macro and geopolitical environment lead Solvay to remain
prudent. As a consequence the view on the rest of the year is relatively
unchanged at this stage.
Solvay confirms, for full year 2024, its guidance of organic growth of the
underlying EBITDA by -10% to -20% (translating into a range of EUR925 million to
EUR1,040 million at a 1.10 EUR/USD exchange rate) and its guidance of Free Cash
Flow to Solvay shareholders to be greater than EUR260 million.
(1) Free cash flow (FCF) is the free cash to Solvay shareholders from continuing
operations.
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 on
Linkedin (https://www.linkedin.com/company/solvay/).
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| Media relations            | Investor relations            |
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| Peter Boelaert             | Boris Cambon-Lalanne          |
| +32 479 30 91 59           | +32 471 55 37 49              |
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| Laetitia Van Minnenbruggen | Geoffroy d'Oultremont         |
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| +33 6 77 05 04 79          |                               |
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| media.relations@solvay.com |                               |

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