The strength to change

Transcription

1 Shaping our future The strength to change R&D at Solvay Jean-Michel Mesland Group General Manager, Technology, Research & Procurement 1

2 Worldwide diversified activities Breakdown of 2009 activities (CH&PL excl IAS) Sales 2009 by Sector (in MEUR) Chemicals 2,713 Plastics 2,537 Sales 2009 by geographic area Fixed assets 2009 by geographic area Others Asia-Pacific 3% 9% Mercosur 13% NAFTA 15% Europe 60% Asia-Pacific Others 7% 2% Mercosur 9% NAFTA 21% Europe 61% 2

3 Overview of Solvay Group Diversified customer base (CH&PL excl IAS) in % of 2009 Sales (= EUR 5,250m) Construction and architecture Chemical industry Glass industry Water and Environment Electricity and Electronics Detergents, cleaning and Hygiene products Paper Packaging Automotive industry 21% of Group sales SBUs : Vinyls, Specialty Polymers, Fluor 11% of Group sales SBUs : Electrochemistry, Soda Ash, Fluor 9% of Group sales SBUs : Soda ash 7% of Group sales SBUs : Pipelife, Soda ash, Electrochemistry 6% of Group sales SBUs : Specialty Polymers, Vinyls 6% of Group sales SBUs : Soda Ash, Electrochemistry, Hydrogen peroxide 6% of Group sales SBUs : Hydrogen peroxide, Electrochemistry 5% of Group sales SBUs : Vinyls, Specialty Polymers 4% of Group sales SBUs : Specialty Polymers 3

4 Megatrends drive our growth Next 11 Rise of RDE challengers Population growth Generation Y Ageing population Urbanisation Megacities Security Mobility Individual isation Regulation/ Government role Complexity Uncertainty Climate change resilience Water Energy Networking Health Digital lifestyle Smart devices Digitization Resources scarcity Land scarcity The rise of RDE middle class Sustainable consumption Conveni ence Cloud computing Biodiversity GHG emissions Food scarcity Biotechnol ogy Nanotechn ology Open models Market Fragmentation 4

5 Alignment of Research Portfolio with Sustainability Megatrends Aligned projects are projects which significantly and measurably: Reduce energy use Research Budget 2010 Neutral Address scarcity of fresh water Increase renewable energy Renewable materials Decrease Waste Generation Aligned 5

6 R&D close to our markets Solvay is organised in Strategic Business Units (SBUs) built around specific products SBUs manage their R&D activities directly related to their business targets and strategies and consequently in a defined scope Competence Centers of Research & Technology Provide competencies and expertise that are essential to all our businesses in technology, environment, intellectual property, material science, Identify and study new emergent technologies with potential future interest for our existing businesses New Business Development manages R&D to create innovative materials and systems using leading edge technologies which go beyond those applied in Solvay s existing businesses. 6

7 Chemicals Business profile Mainly high volume chemicals business Lower ratio of R&D to sales Competitive advantages: operational excellence secured raw materials and energy Product innovation in selected megatrends Competencies : supply chain, procurement, process engineering, chemistry Some examples Hydrogen Peroxide: high productivity process and mega units Epicerol : substitution of propylene by glycerol SOLVAIR Select 300: sodium bicarbonate from solid waste 7

8 Plastics Business profile One high volume basic plastics activity: Vinyls One specialty business unit: Specialty Polymers competitive advantages: technological leadership, product development, customer relationship higher R&D to sales ratio competencies: materials science, chemistry, understanding of applications Some examples VCM from bioethanol Optimise PVC production process Specialty Polymers 8

9 Four NBD Platforms Advanced Technologies: Nanotechnologies Electronics and IT Manufactruring and Materials Healthcare and life sciences Source: CEA Future Businesses: Organic Electronics Organic Light Emitting Diodes (OLEDs) Organic Field Effect Transistors(OFETs) Organic Memories Renewable Based Materials and White Biotechnologies Renewable raw materials Process improvement via biotechnologies New products Source: Johnson Matthey Sustainable Energies Fuel cells Organic Photovoltaic (OPV) Hydrogen Storage New Batteries Source: Osram Source: Konarka 9

10 More powerful innovation engine targeted by Horizon project Creation of new position: Chief Scientific and Innovation Officer (CSIO) reporting to CEO CSIO will lead New Business Development and Innovation Championship CSIO will actively support implementation of best practices: - for innovation, -R&D portfolio management - public fund raising and R&D execution CSIO will coordinate and give a new impulse to R&D effort 10

11 Innovation leverages our core R&D competencies Core competencies Crystallisation precipitation Catalysis In process Organic synthesis Project management Polymer compounding & processing Emerging competencies Electrochemistr y Inorganic chemistry Polymerisation Analytical chemistry Halogen Chemistry & Electrochemistry Materials Science Energy management Build, design operate industrial plants Organic electronics Nanotechnology Renewable based chemistry Sustainable energies 11

12 R&D Centers close to the markets 800 people in 15 R&D centers and new ones to come Peptides Organic Chemistry Cincinnati Material Sciences Organic Chemistry Energy Management Process Engineering Polymers Nanotechnology Brussels Polymers Tavaux Polymers & blends Atlanta Inorganic Chemistry Nancy - Dombasle Polymers Organic Chemistry Fluorinated Products Fluorinated products Organic Chemistry Hanover Sustainable Energy Onsan Milano - Bolate Polymers Renewable Chemistry Nanotechnology Vadodara 12

13 Intensifying geographic expansion launch of three R&D centers in Asia Close to the customer Asia: large talent & innovation pool Effectiveness of the group approach South Korea China India 13

14 Key Figures R&D Solvay s R&D: approx.. 2% of global sales EUR m BF2010 Total R&D expenses (1) (1) : excluding Pharma and Inergy Automotive Systems 14

15 R&D: putting it in perspective R&D expenses R&D to sales % 60 7% 50 6% BF2010 Basic Chem /Plastics 5% 4% 3% 2% 1% 0% Specialty Polymers NBD Basic Chem / Plastics Specialty Polymers R&D and Marketing Segmentation of the chemical industry R&D/Sales 1,06% R&D/sales 0.94% 1,00% Pharma > 6% Food Specialties Specialty Chemicals 6% Chemicals Intermediates 1,5% Industrial Chemicals Industrial Chemicals Assets and Feedstock Basic Chemicals < 1,5% Vinyls Peers AVG * 15 Bacic DSChem / Plastics

16 Intellectual Property: first filings First Patent Filings BF

17 Strengthening capabilities and organisational setup significantly enhance innovation process and 17

18 Innovation Scorecard 2009 The 3 challenges (1) Growth Partnerships People Group income should come from new products or technologies (developed within the last five years). Projects should be developed in partnership with external partners in the framework of structured agreements. Management participation in terms of Innovation objectives Employees should have on average one idea accepted every year % 27 % 23 % 47 % 47 % 50 % 82 % 0.5* > 90 % 0.6* 100 % 0.5* *: average accepted idea per employee (1) : Excl. Pharma 18

19 Open innovation: developing partnerships GROUPE SOLVAY Flemish Institute Chinese Academy of Sciences Uni Krakow UCL Universidad Tecnológica Nacional NCL Pune (India) BIR&D ICT Mumbaï 19

20 Innovation: recognition by third parties 20

21 Solvay Innovation Trophy The Solvay Innovation Trophy is a Group Initiative aiming to: Reward & recognize innovation efforts throughout the Solvay world Strengthen the innovation culture to mobilize the organization towards our current & future challenges by encouraging everyone s participation Promote innovation by making projects & project pipeline visible to the organization (cross fertilization) sharing internal best pratices. 21

22 Solvay Innovation Trophy 2009 Focus: Resilience and Sustainable Development Total submissions Submitted to Jury (cap) 22

23 targets in the short, medium and long run - to foster competitiveness - to fuel growth - EUR 500m additional sales from NBD (1) by 2015 The presentations of Chemicals and Vinyls, of Specialty Polymers, and of New Business Development will amply illustrate this. Solvay Science for Innovation Days Closing ceremony this afternoon. (1) : NBD = New Business Development, incl. acquisitions 23

24 Solvay Science for Innovation GROUPE SOLVAY SOLVAY Science for Innovation, 3-day conference, Brussels, Belgium, with special guests and about 200 researchers and managers from the Group. Coordination since 2007 with the independent prestigious : «Solvay Conferences on Chemistry» organised by the Solvay International Institutes ( Jean-Marie Lehn Chemistry Nobel Laureate 1987 Robert Laughlin Physics Nobel Laureate 1998 Peter Grünberg Physics Nobel Laureate 2007 Ada Yonath Chemistry Nobel Laureate

25 To the extent that any statements made in this presentation contain information that is not historical, these statements are essentially forward-looking. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties because of 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&D projects and other unusual items. Consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "believes," "may," "could" "estimates," "intends", "goals", "targets", "objectives", "potential", and other words of similar meaning. 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 any forward-looking statements"