More Commitment

In 2015, we continued to accelerate the transformation of Solvay to achieve our ambitions for 2016.

Our growth levers – dynamic portfolio management, organic growth, innovation for more sustainable chemistry, and a strong culture of excellence – have once again created value.

Jean-Pierre Clamadieu <em>Interview</em>To Jean-Pierre Clamadieu <em>Interview</em>

interviewJean-Pierre Clamadieu

“Key word for 2016 is growth.”

Jean-Pierre Clamadieu, Chairman of the Executive Committee and CEO

Transformation <em>On track</em>To Transformation <em>On track</em>

TransformationOn track

Solvay is in the midst of a profound transformation of its business. In 2015, significant changes have taken place in the structure of our portfolio to be more diverse and more resilient.

These changes likewise boosted our ability to innovate and deliver operational excellence. We also strengthened our geographical footprint in key markets and continued to move away from commodity products and refocused on highly innovative, value-added solutions. We will have more solutions to help our clients to meet the dual challenge of competitiveness and sustainability.

Completion of Cytec acquisition

The global push toward CO2 reduction and resource efficiency is driving greater demand for lightweighting composite materials.

In December we successfully completed the acquisition of Cytec. This is a decisive step change in our transformation, strengthening our presence in activity domains with high-added-value and resilience, and improving our geographical exposure.

This deal propels Solvay into the world number two position in composite materials for aerospace industry. It also accelerates our Advanced Materials business and pushes us into other markets for composites, such as high-end automobiles.

We now offer solutions and materials to reduce the weight and increase the fuel efficiency without compromising structural strength or safety. Cytec lightweighting composite materials are currently used in Airbus A350 and Boeing 787 aircraft. We expect annual growth of around 10% for such materials in the aerospace sector. We also strengthen our formulations business with a new mining industry-dedicated activity.

Launch of INOVYN joint venture

In July 2015, Solvay and Ineos announced the start-up of the Inovyn European joint venture in chlorovinyls, following an agreement between the two companies in 2014.

Inovyn pools Solvay and Ineos European assets across the entire chlorovinyls chain: PVC, the world’s third most-used plastic, caustic soda and chlorine derivatives. It builds on the strengths of the two companies’ industrial assets, talents and regional complementarity to enhance competitiveness.

Mid March 2016, we announced our intention to exit Inovyn later in the year. Inovyn is now a sound and sustainable chlorovinyls player.

Creation of Special Chem GBU

In the context of simplifying and improving the efficiency of our overall Group structure, we created a new Global Business Unit in 2015: Special Chem. It is today a world leader in selected specialties based on fluorine, rare earths, strontium and barium.

With its increased scale and enhanced innovation capabilities, Special Chem is positioned to capture growth opportunities, and focuses on leveraging our technology and market position in auto-catalysts and fluorine specialties to drive new growth in targeted markets, namely in Automotive and Electronics. As part of this transformation, Special Chem divested its German-based refrigerant activities and pharma propellants to Daikin.

In 2015, Special Chem had net sales of about € 912 million. It is headquartered in Seoul, South Korea.
“I do not know many companies in our industry that have made such bold moves to transform their portfolio as we have over the past few years.”

Jean-Pierre Clamadieu, Chairman of the Executive Committee and CEO

FIVE COMMITMENTS <em>By 2025</em>

Five CommitmentsBy 2025

With Solvay Way, the Group reinforces
its commitment to sustainable chemistry.

Strategic decisions <em>In our Operating Segments</em>To Strategic decisions <em>In our Operating Segments</em>

Strategic DecisionsIn our Operating Segments

Our activities are divided into four Operating Segments, with business models adapted to specific growth dynamics and competitiveness challenges. Each is comprised of Global Business Units (GBUs).
The Corporate and Business Services covers the Energy Services GBU, the Group’s effort to optimize the energy efficiency of our portfolio by 10% by 2020 and reduce greenhouse gas intensity by 40% by 2025. It also includes the corporate functions of the Group.

Advanced
Formulations

Among Solvay’s growth engines, Advanced Formulations’ activities are characterized by their high customer - and applications - driven approach and low capital intensity.

Global Business Units

Novecare, Technology Solutions, Aroma Performance

Details

Advanced
Formulations

2015 net sales2,885€ million
REBITDA522€ million
Details

Advanced
Materials

Advanced Material’s activities are growth drivers that contribute to the Group’s performance through leadership in markets with high entry barriers and high return on investment.

Global Business Units

Specialty Polymers, Composite Materials, Special Chem, Silica

Details

Advanced
Materials

2015 net sales4,503€ million
REBITDA1,079€ million
Details

Performance
Chemicals

Strong cash generators, the activities of Performance Chemicals continue to deploy excellence programs to create additional sustainable value.

Global Business Units

Soda Ash & Derivatives, Peroxides, Acetow, Coatis

Details

Performance
Chemicals

2015 net sales3,052€ million
REBITDA770€ million
Details

Functional
Polymers

The success of these activities is driven by optimization strategies and industrial innovation. Functional Polymers is housing Polyamides activities and participation in chlorovinyls joint ventures.

Global Business Units

Performance Polyamides, Fibras, Chlorovinyls

Details

Functional
Polymers

2015 net sales1,926€ million
REBITDA190€ million
Details
Proforma unaudited figures representing a situation as if the acquisition of Cytec had taken place on January 1, 2015.

Advanced
Formulations

Among Solvay’s growth engines, Advanced Formulations’ activities are characterized by their high customer - and applications - driven approach - innovation capacity and low capital intensity.

Global Business Units

Novecare, Coatis, Aroma Performance

Details

Advanced
Formulations

2015 net sales2,652€ million
REBITDA378€ million
Details

Advanced
Materials

Advanced Material’s activities are growth drivers that contribute to the Group’s performance through leadership in markets with high entry barriers and high return on investment.

Global Business Units

Specialty Polymers, Silica, Special Chem

Details

Advanced
Materials

2015 net sales3,334€ million
REBITDA836€ million
Details

Performance
Chemicals

Strong cash generators, the activities of the Performance Chemicals continue to deploy excellence programs to create additional sustainable value.

Global Business Units

Soda Ash & Derivatives, Peroxides, Acetow, Emerging Biochemicals

Details

Performance
Chemicals

2015 net sales3,090€ million
REBITDA789€ million
Details

Functional
Polymers

The success of these activities is driven by optimization strategies and industrial innovation. Functional Polymers is housing Polyamides activities and participation in chlorovinyls joint ventures.

Global Business Units

Performance Polyamides, Fibras, Chlorovinyls

Details

Functional
Polymers

2015 net sales1,490€ million
REBITDA141€ million
Details
Commitment highlightsTo Commitment highlights

CommitmentHighlights

8

New manufacturing

sites commissioned in 2015

€ 10 million

Allocated

to the Group Performance Sharing Plan benefiting more than 22,000 employees worldwide