Building a new model of sustainable chemistry. Karim Hajjar, CFO

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1 Building a new model of sustainable chemistry Karim Hajjar, CFO NEXT GEN meeting March 21, 2015

2 10.2 bn Net sales Industrial sites countries 26 k Employees (EFTEs) 15 major R&I centers Building a strong leader, transforming the global chemical industry 2

3 Well-balanced geographical spread & end-user markets Balanced geographical exposure* Exposure to higher growth end-markets* North America 23% Latin America 11% Europe 34% Asia/Pacific & RoW 32% Consumer goods & Healthcare 26% Industrial applications 16% Electrical & Electronics 7% Automotive & Aeronautics 18% Energy & Environment 10% Agro, Feed & Food 11% Building & Construction 12% * Figures represent % of 2014 net sales 3

4 Governance focused on value creation ComEx Advanced Formulations Advanced Materials Performance Chemicals Functional Polymers Novecare Specialty Polymers Soda Ash & Derivatives P&I Energy Services GBUs Aroma Performance Coatis Silica Rare Earth Systems Peroxides Acetow Engineering Plastics Fibras Special Chemicals Emerging Biochemicals RusVinyl Functions Communication Public Affairs Sustainable development Human Resources Finance Strategy Research & Innovation Intellectual Property Purchasing & Supply Chain Industrial Marketing & Sales Multibusiness unit Solvay Business Services 4

5 Focused on being a model of sustainability with commitments Reach excellence in safety & health Planet Customers Deploy unmatched sustainable portfolio management Reduce our environmental impact by 2020 Investors Suppliers Energy consumption Greenhouse gas emissions Groundwater consumption Air emission* Water emissions** Sustainable water management*** Communities Manage risk Develop rich & balanced social dialogue Employees Providing sustainable solutions 5

6 Leveraging our performance to generate sustainable value Increase REBITDA to * bn 10%+ CAGR Improve CFROI by >100 bp Enhance Environmental footprint * At YE 2013 perimeter 6

7 Portfolio reshaping: Redeployment for value Discontinued Operations Novecare Benvic Reducing cyclical & low-growth businesses exposure Indupa Inovyn Chemlogics Dhaymers Erca Quimica Specialty Polymers Aonix** Ryton PPS Enhancing customized solution offering Eco Services Refrigerants* Life Science Special Chemicals Flux Brazing * To be closed in H ** Minority participation 7

8 Selective investments for future value creation Capex Continuing operations Growth capex Maintenance capex stable in m In new facilities to start up > 50% growth capex ~70% of growth capex in Growth Engines Main growth capex projects Novecare Aroma Performance Specialty Polymers Silica Soda Ash & Derivatives Peroxides e Specialty surfactant plant in Germany Alkoxylation plant in USA Alkoxylation plant in Singapore Vanillin plant in China Fluoropolymers plant in China PEEK exp. India PEEK plant in USA Silica plant in Poland Bicarbonate plant in Thailand Soda ash expansion in USA HPPO plant in Saudi Arabia Growth projects in growth regions 8

9 Strong innovation portfolio aligned with global megatrends Focused innovation fields Major R&I sites worldwide Advanced materials Advanced formulations Climate change Health & well-being Ecoprocesses Resource scarcity Next billion consumers Organic electronics Renewable chemistry Sustainable energy 1,950 R&I staff 287 m R&I efforts 21% New sales ratio 259 Patents filed 9

10 Striving for excellence in all domains Impact of Excellence initiatives on REBITDA Innovation +250 m Commercial excellence +120 m Operational excellence +300 m Total +670 m From 2013 to 2016 ~300 m delivered by end

11 Sustained delivery in 2014 Net sales YoY REBITDA YoY 10.2 bn +5% 1.8 bn +11% Net income Free Cash Flow Dividend YoY 156 m Adjusted, Group share 656 m 3.40 gross / share +6% vs. 378 m in 2013 vs. 487 m in net 11

12 Progressing towards a new model of sustainable chemistry Portfolio upgraded On track Excellence delivery Poised for growth