Solvay publishes its 2021 integrated annual report and the solidarity fund report

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Solvay S.A.

Solvay publishes its 2021 integrated annual report and the solidarity fund report

In 2021, Solvay overcame headwinds to deliver exceptional financial results and meaningful progress on the Sustainable Development Goals, while supporting employees and communities in need.

Brussels, April 4, 2022

Solvay published today its integrated annual report and its report on the solidarity fund. the integrated annual report reflects the Group’s progress in its integrated management journey and provides a comprehensive and integrated view of Solvay’s economic, environmental and societal performance for 2021. It also details the Group’s 2021 performance review, governance and management practices risks.

Solvay delivered and exceeded its commitments in a challenging environment marked by inflation, logistical issues and the global urgency to fight climate change.

The Group improved its organic growth and continued to deliver strong financial performance by:

  • Achieve strong volume and price growth with continued cost discipline

  • Delivering record EBITDA of €2.4 billion and best-in-class EBITDA margins of 23.3%

  • Delivering record net profit of €1 billion and record ROCE at 11.4%

  • Invest €736 million for future growth, while maintaining capital discipline and consistency with strategic imperatives

  • Maintain strong cash generation, with an 11th consecutive quarter of positive cash generation

  • Continue to improve its balance sheet, reducing debt and pension liabilities by €884 million

  • Simplify your portfolio

With the GROW Strategy and Solvay One Planet roadmap as a compass, Solvay has taken bold steps in 2021 to strengthen its leadership positions, reallocating resources to growth and sustainable businesses. This included:

  • Accelerate the development of innovative solutions for today and tomorrow, by investing more in growth platforms dedicated to battery materials, thermoplastic composites and green hydrogen

  • Expand its capabilities, establishing a new thermoplastic composites manufacturing plant in the United States and announcing an investment to increase its PVDF production in Europe, among other initiatives

  • Strengthening its bio-based seed care portfolio through an acquisition and the launch of a joint venture in Southeast Asia to meet the booming demand in semiconductors, among others

  • Developing new biosourced solutions for home and personal care

Solvay raised the bar on sustainabilitytaking steps to become a low-carbon country and more inclusive society:

  • Create an ESG committee within the Solvay Board of Directors, to help guide strategic priorities and ensure the Group meets its commitments

  • Announcement of a plan to achieve carbon neutrality before 2040 for all of its activities excluding sodium carbonate, and before 2050 for its sodium carbonate activity, supported by a value-creating investment program of approximately 2 Billions of Euro’s

  • Accelerate the energy transition in its factories, with 36 projects underway worldwide

  • Engage with its suppliers, calling on 400 of them to join the Science Based Targets initiative, to help reduce emissions throughout the value chain

  • Partner with customers and key players to create circular businesses, including developing sustainable tire technology with Bridgestone and Arlanxeo and working on recycling solutions for advanced materials with Mitsubishi

  • Develop new non-fluorinated surfactant technologies, which have enabled the Group to explore technological innovations that advance its sustainability ambitions while meeting customer needs

  • Launch of Solvay One Dignity, commitment to nine goals and associated action plans to drive more diversity, equity and inclusion at Solvay

  • Announcement of the launch of Solvay’s first employee share ownership plan

Moreover, the Solvay Solidarity Fund continued to support employees heavily impacted by the pandemic and natural disasters in 2021. To date, €2.4 million have been paid to individuals and €4 million for collective support. Over 850 individual requests for support have been processed since its launch and the Fund has supported local communities through 30 separate projects, including initiatives related to urgent healthcare needs, mental health support for carers and helping schools affected by flooding. In early 2022, he donated 1 million euros for relief in Ukraine and Solvay has also pledged to match future employee donations. An overview of the Fund’s donations is detailed in the 2021 Solidarity Fund Impact Progress Report.

“Over the past three years, we have accelerated our journey to transform and simplify Solvay. We affirmed our culture by instilling a spirit of performance in our entire Group. We have set ourselves ambitious sustainability goals through our Solvay One Planet roadmap, raising the bar every year to meet the needs of our customers and help build a better world. We got in shape, we gained efficiency and we executed our GROW strategy,” said Ilham Kadri, CEO of Solvay. “Coupled with our strong and improving portfolio, this has delivered strong earnings and cash generation, allowing us to deleverage our balance sheet and invest for future growth. We are now ready to change the game by creating two new fabulous companies1which builds on what Solvay has always been throughout history: Essential AND Special.

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The 2021 report is available on Solvay.com where a downloadable version in ESEF format as specified by the European Commission in the Regulatory Technical Standard on ESEF (Regulation (EU) 2019/815) is also available. Solvay also publishes today its 2021 report on payments to governments. This document is available in the Financials section of the Solvay website.

1 As part of its efforts to unleash its full potential, the Group announced in early 2022 a bold new step in its ongoing journey: explore a separation into two independent publicly traded companies.

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