Speech by Baron Daniel Janssen
Chairman of the Board of Directors
Solvay: Driven by the future
SLIDE 1
Ladies and Gentlemen,
Let me first of all welcome you all to this General Meeting. The fact that so many of you are with us today is an encouraging sign of your confidence and interest in our Group.
This year’s Annual Meeting is a very special one, for a number of reasons.
We are holding it, for the first time, one month earlier than in previous years. The Annual Meeting used to be held on the first Thursday in June, ever since the Group became a limited liability company in 1967.
Now we are holding it on the second Tuesday of May. The progress of computer technology, the optimization of our financial processes and the competences of our teams have enabled us to close the annual accounts of the past year earlier than we used to. This enables us to share them faster with you. It also allows us, and this is a first for Solvay, to communicate to you the results for the first quarter of the current year at the same time as we announce them to the press.
Secondly, we have good news to share with you concerning these two periods, that is 2005 as a whole and the first quarter of 2006. Mr Michielsen will be giving you the details, but I can tell that they are something to look forward to.
Finally, May 9, 2006 is an important day for Solvay. As we announced a year ago, it is today that major changes in the top management of our Group come into effect. I will of course be commenting on this event.
2005, a year of growth
SLIDE 2
2005 was a good year for the world economy, confirming the recovery that began in 2004.
The global economy grew by a solid 3.5%, and should continue at the same rate in 2006. China, India and Russia continue to make the running with growth rates of between 6 and 10%.
Despite this, Europe is having difficulty moving beyond 2%. Growth has also dipped in the USA owing to slower consumption and high household debt levels. This rapid overview only goes to confirm the strategic choices we have made. The priority the Group is giving to innovation for generating growth is a real necessity, more particularly in Europe which still provides 56% of our business flow. At the same time, our geographic strategy of increasing our presence in Asia, Eastern Europe and the Americas is more than confirmed by this global economic situation. Mr Michielsen will be showing you just how enterprising we have been in these countries throughout 2005.
I will now move on directly to the Solvay Group’s financial results.
Let me first remind you of our financial objectives.
SLIDE 3: Objectives
These objectives are ambitious. We believe firmly in them. And, as 2004 and 2005 have shown, they are attainable - which does not mean that we will never again face more difficult years in the future.
These objectives are expressed in terms of the growth of our net income, our ROE and our dividend, all of which will be covered in the presentations.
SLIDE 4: Net income
First of all we are aiming to grow our net income by at least 10% a year. We have achieved this objective over the past ten years (1996-2005) with an average growth of 10.3%.
Our net income for 2005, at EUR 816 million, was up 51% on 2004. It is true that capital gains on certain asset sales have flattered this figure, but our recurrent income is also very good.
Our second objective is an ROE (return on equity) of 15%. In 2004, we reached 14.6%, in 2005 we achieved a record 22%, and we are confident of again passing the 15% mark in 2006.
The Solvay share: prices and returns
SLIDE 5: Solvay share price from 1996 to 2006
Between January 1 and December 31, 2005, the Solvay share price rose by 15%, demonstrating strong investor interest in our Group’s activities, and in the successful implementation of our strategy.
In last year's constantly rising share market, the Solvay share has almost continuously outperformed the Euronext 100, MSCI Chemicals and MSCI Pharmaceuticals indexes since September 2004. On November 11, 2005 it reached a new historical record of EUR 104.1.
SLIDE 6: Annual return on the Solvay share: 1996 to 2005
In 2005, the return on the Solvay share, that is the sum of the dividend yield (2%) and the growth in the share price (15%), amounted to 17%.
During the last ten years, from 1996 to 2006, the Solvay share has provided an average annual return of 10% a year.
SLIDE 7: Net dividend: 1996-2005
Given our policy of increasing our dividend whenever possible and, if possible, never reducing it, and the results for 2005, the Board is proposing to increase the dividend by 5.3% from EUR 1.90 to EUR 2.00 net per share.
Corporate Governance
This year we have again published our Corporate Governance rules in the form of a major document, which is included as a separate publication in our Annual Report. These rules are intended to ensure that we operate in a transparent manner, and to guarantee the independence and the competence of our Board.
These rules are in conformity with the new Belgian Corporate Governance code, which was published in December 2004.
This well conceived code came fully into force on January 1 2006 in respect of 2005. The separate document, inserted into our Annual Report, represents the application by the Solvay S.A. Board of Directors of the recommendations of this Code, following the “comply or explain” principle.
The changes of May 9, 2006
SLIDE 8
The history of any institution is made up of appointments, successions and departures. These are always important moments, with their inevitable dangers and promises. Today Aloïs Michielsen ends his term of office as Chairman of the Solvay Executive Committee and takes over from me as Chairman of the Board of Directors. Christian Jourquin becomes the 9th Chairman of the Executive Committee, bearing our hopes for another period of growth of the Solvay group. For the first time in our history, neither the Chairman of the Executive Committee nor the Chairman of the Board will belong to the Solvay family, which is why Denis Solvay has been appointed Vice-Chairman of the Board of Directors. Moreover, Bernard de Laguiche, another descendant of Alfred Solvay, who has already been a member of the Exerctive Committee for 8 years, became on March 1, 2006, General Manager Finance of the Group and a Member of the Board of Directors. All of them, I believe, deserve our applause.
SLIDE 9 Dear Aloïs, you have been at Solvay for 37 years, including eight as the Chairman of the Executive Committee. You have marked the Group with your initiatives and your fundamental, direction-changing work. Your initiatives over the past eight years have considerably changed the Group's portfolio, making it much less cyclical, stronger growing and with more high margin products. The more general direction towards Specialty Polymers and pharmaceuticals, and away from polyolefins, industrial foils and decorative vinyls, has involved large-scale and very satisfactory deals with Ausimont, BP and Fournier. Our managerial teams are now, more than before, accustomed to taking profitable scientific, technological, medical, commercial, financial and international risks. Your fundamental work has considerably improved the Group’s structure and they way it works, making it much more profitable and growth-oriented, thanks to your double strategic objective of “growth and competitiveness through innovation”. When you took over from me in June 1998, I told you, in front of the General Meeting “You are an entrepreneur, and a team leader. I pass the reins to you and wish you a successful race”. You have in fact run a very good race, we thank you and congratulate you for it. We wish you every success as Chairman of the Board of Directors. (Applause)
SLIDE 10
Dear Christian Jourquin, your intelligence, your international successes during your 35 years at Solvay, including ten on the Executive Committee, mark you out to become an excellent Chairman of the Executive Committee. You and your colleagues will face major challenges in this period of rapid change across the world. Asia and Pharmaceuticals will both be taking a growing place in this world, whilst external growth will continue to supplement and accelerate our internal growth. I wish you every success in this fascinating and difficult position.
SLIDE 11
Dear shareholders, let me thank you for the support you have given the Solvay group for so many years, and to me for the last 22 of them. You have been here in good times like 2006, but also in bad times like 1993. Many of you, and in particular the family shareholders, prefer a long-term vision which allows us to take the risks of innovative research and new geographical expansions. I can only say, continue! You have also encouraged us to assume our societal and environmental responsibilities, in the Solvay tradition which today goes under names like “sustainable development” or “corporate social responsibility”. Here too I invite you to continue! A word to the younger generations of family shareholders: remain united and responsible for the Solvay group, to enable it to continue to grow and to offer the world its values, thanks to the family anchoring which has been so successful for the past 143 years. Again I say, continue!
SLIDE 12
As for myself, dear Solvay Colleagues and friends, I have been very happy to work for 22 years with you, 12 of them as Chairman of the Executive Committee and then eight as Chairman of the Board until reaching the age of 70. The Solvay group, that is you and our 30 000 colleagues around the world, are together, more than ever, a magnificent chemicals and pharmaceuticals Group. During my 12 years as chief executive, I was able to carry out a certain number of key operations, as well a lot of basic, direction-changing work: the growth of the Pharmaceuticals Sector, our entry into and expansion in Asia and Eastern Europe, and also improving our capacity to divest and acquire. I thank you, all of you, for the pleasure of being able to work with you during these 22 years, as professionals and as friends. I thank Thérèse for accepting being on her own whilst I worked hard for Solvay, and I thank her even more for the 35 years of happiness we have shared together.
SLIDE 13
I look forward to seeing you again next year alongside our two Honorary Chairmen, Mr Solvay and Mr Yves Boël, to whom I am bound by bonds of esteem and friendship. In seven years’ time, the Solvay group will be 150 years old, and my wish is for it to have reached new summits by then.
Long live the Solvay Group!
oOOo
Speech by Mr. Aloïs Michielsen
Chairman of the Executive Committee
“Driven by the future”
Slide 1
1 - Introduction
Ladies and Gentlemen,
I too thank you for coming in such large numbers to our General Meeting. It is true that today’s meeting is particularly important.
2005 was a new record year for the Group, following the already very good results we posted in 2004. A dynamic business climate and high volumes have enabled us to improve margins by raising prices and reducing costs. In particular we have tasted the fruits of our strategy of leadership and faster development in Pharmaceuticals and Specialties. On the competitiveness front we have also advanced thanks to wise choices in terms of technology, of energy sourcing and of financial and administrative management.
This good news has unfortunately been soured by the sanctions that have just been imposed on us for anti-competitive practices in peroxides, dating back to the late 1990s. These sanctions are very heavy: EUR 36 million in the United States and EUR 193 million in Europe.
Such practices are unacceptable. We can only repeat and reaffirm that we are giving the matter our full attention at the highest level of the company and are doing everything possible to ensure that Solvay respects all competition legislation.
2- Results
Let me move straight to the results, which we will be asking you to approve. As we have said many times, 2005 was a new record year after the very good 2004 results.
Slide 2: Key figures and results
Sales in 2005 reached EUR 8.6 billion, up 18% on 2004. This is the first time for many years that our sales have moved upwards. Expressed in USD, we have passed the magic 10 billion dollar mark.
REBIT rose by 23% to EUR 912 million, giving us an operating margin (REBIT/sales) of 11%, which also higher than in earlier years.
Cash flow has risen by 29% to EUR 1.28 billion.
Finally, the Group’s net income has reached a new record of EUR 816 million, 51% above the figure for 2004. This merits some explanations.
Slide 3: Non-operating items
In 2005 the Group recorded two major non-operating items, both of which appear below the REBIT figure in the income statement:
first, a negative balance of non-recurring items of EUR -357 million, made up mainly of EUR 135 million of profits on the sale of buildings, and EUR 432 million of provisions for restructuring in Pharmaceuticals as well as anti-trust fines in the peroxides area, something we are not proud of.
second, a net capital gain of EUR 472 million on the sale to BP of the participating interest in the polyethylene activities.
Slide 4: Balance sheet items
The income statement is accompanied by a very good balance sheet, which of course reflects the major acquisition of Fournier during the year.
Equity stands at EUR 3 920 million at the end of 2005, which is EUR 128 million higher than at the end of 2004;
Return on Equity (ROE) is 21.8%, well ahead of our goal of 15%.
Slide 5: Indebtedness
At EUR 1 680 million, total net Group indebtedness is EUR 885 million higher than at December 31, 2004, following the payment of EUR 1.2 billion for Fournier Pharma.
This explains the net debt to equity ratio at December 31, 2005 of 43%, after peaking at 46% at the end of the third quarter of 2005, and in line with our objective of not remaining permanently above 45%.
It would point out here that the Group recorded in the first quarter of 2006 around EUR 330 million from the sale of its Industrial Foils operations. This very attractive operation has brought the net debt to equity ratio down to 37% at March 31, 2006, as we shall see later.As you will can see, our excellent results in 2005 have enabled us to maintain a healthy financial situation, despite the high – but justified – cost of the Fournier acquisition. We have also maintained our excellent ratings.
3. Review of the Sectors
Slide 6: Strategies and Performances of the three Sectors
Let us now look briefly at the strategies and performances of our three Sectors of activity.
Sales have increased in each of them: +30% in Pharmaceuticals, +14% in Chemicals and +13% in Plastics. REBIT too is up, by +28%, +58% and +4% respectively.
Slide 7: Pharmaceuticals Performances
The results of the Pharmaceuticals Sector (sales + 30%; REBIT + 28%) include since August 1 those of Fournier Pharma. The performance of Fournier’s “blockbuster”, fenofibrate, has been remarkable and amply met our expectations. This has certainly flattered our results, though we should point out that our other therapeutic areas have done well, both in the USA and in emerging countries.
Slide 8: Strategy of the Pharmaceuticals Sector
The Pharmaceuticals Sector has not only begun integrating Fournier Pharma, but has also launched a large-scale plan, “INSPIRE”, aimed at creating the future Solvay Pharmaceuticals by 2010. The three objectives of the plan are:
to increase sales by at least 7% a year, and to reach a REBIT/sales margin of 20% (we were at 13.3% in 2005),
to selectively reorganize our portfolio, with cardiometabolics and neurosciences as our primary fields;
to develop an effective, competitive global organization which will gradually enable us achieve cost savings of EUR 300 million a year by 2010.
Our Pharma Sector also has three major events marked in for 2006:
submitting of the registration files for Bifeprunox in the USA and Dualtis in Europe
validating our new flu vaccine fabrication plant in the Netherlands, which has attracted extensive interest as the first plant in the world to manufacture vaccines on cell cultures.
In addition, we have just been allocated a USD 298 million subsidy by the US authorities to develop a flu vaccine in the USA based on this new technology.
Slide9: Performances of the Chemicals Sector
Chemicals markets moved in a positive direction right through the year. Price rises, higher sales volumes and strict cost control together enabled us to increase sales by 14% and our REBIT by no less than 58% compared with 2004.
We have made progress in each of our three clusters: soda ash, electrochemicals and hydrogen peroxide, in each of which we are one of the, if not the, market leader.
Slide10: Strategy of the Chemicals Sector
The strategy of the Chemicals Sector is characterized by a search for growth in new activities, such as niche organic chemistry markets, and with initiatives in fast-growing regions of the world.
The second strategic direction of the Chemicals Sector is a constant search for competitiveness and for access to energy at optimum conditions.
Slide 11: Performance of the Plastics Sector
In Plastics too our figures have grown, sales by + 13% and REBIT by +4%, following on an excellent 2004.
Sales of our Specialty Polymers increased by 7% in markets such as the oil industry, semi-conductors and medical applications. Unfortunately this increase is not fully reflected in the profits of this activity, owing to the start-up costs of new units and rising raw materials prices. Prospects, nonetheless, remain outstanding.
The earnings of the Vinyls chain are above already excellent 2004 levels reflecting both productivity gains and a recovery in demand, prices and margins at the end of the third quarter of 2005.
Slide12: Strategy of the Plastics Sector
The strategy of our Plastics Sector is to strengthen the existing ranges in our Specialty Polymers portfolio with capacity investments, acquisitions and targeted R&D efforts.
In Vinyls, we will continue to strengthen our competitiveness and capitalize on our strengths. We are developing in strategic high-demand areas where we can take advantage of or build our leadership.
I would like to conclude this review of our results by reminding you that they are the fruit of the ceaseless work of our 30 000 employees, whom I would once again thank, and with whom we have always maintained a good social dialogue with due respect for our Solvay Values.
4 – Implementation of our growth strategy
Slide 13
Our good results are the fruit, among other things, of a good strategy which focused initially on leadership and competitiveness and which we recently extended to include sustainable, profitable growth based on innovation and on developing our business in the fastest growing parts of the world, that is Asia, the Americas and Central Europe.
Slide 14: Implementation of the strategy
The main initiatives taken during the year clearly illustrate this strategy.
In the first quarter we sold our participating interest in BP Solvay Polyethylene, preferring to release the capital invested in this highly cyclical activity for use elsewhere.
In the same order of things, we launched the divestment of our Industrial Foils, beginning with the sale of the rigid foils to Ineos.
At the same time, we have increased our capacity in Specialty Polymers. Without going into the details, we have decided to invest EUR 200 million this year in capacity increases and acquisitions in Specialty Polymers capacities in Europe, the United States and Asia.
Slide 15: Implementation of the strategy
In the second quarter, we did the spadework for launching 3S, our Shared Services Centre in Europe for the Finance and HR functions.
In April we also decided to convert our Green River calcination units from gas to coal, a wise decision given the high volatility of gas prices in the USA today.
We also decided in the second quarter to set up a JV in China in high purity H2O2 and to create a greenfields inorganic fluorides plant at Onsan in Korea, which will employ between 120 and 130 persons.
In June we set up a JV in Barium-Strontium with a US partner. The commodities market for barium and strontium carbonates was calling in fact for a major restructuring. We also decided to purchase a Technical Centre for our Specialty Polymers in Shanghai. A good investment, and we own this building.
Slide 16: Implementation of the strategy
In the third quarter, we concluded the purchase of Laboratoires Fournier in France. This strategic acquisition gives Solvay Pharma access to a blockbuster drug – TriCor® in the USA – and access to the world of cardiovascular metabolics, a huge market which is growing continuously given current lifestyles.
We also signed a letter of intent with the Indian company Gharda to purchase its Polymers division, giving us access to PEEKs - an old dream of Solvay - and to additional polysulfone capacities. The closing of the transaction is currently taking place.
This acquisition will give the Group almost 850 people in this enormous country sub-continent in which we are already present in Pharmaceuticals, Barium, H2O2 and in Specialty Polymers.
Practically in parallel with this, we proceeded to acquire Mississippi Polymer Technologies in the USA, giving us access to PARMAXTM, a transparent polymer with unique properties.
We also signed a contract with Renolit to sell to it all our remaining Industrial Foils activities. The sale has since gone ahead.
Slide 17: Implementation of the strategy
In the last quarter, we organized an “investor day” to communicate our new Pharmaceuticals strategy and its relatively short-term objectives (2010), which I have outlined above.
We also accelerated our negotiations with Sinopec to gain a majority shareholding in China’s best soda works.
This is an impressive list of projects and achievements, some of which we are continuing to work on this year.
5- And what is the outlook for 2006?
Let us look now at the first quarter 2006 results, which are published today, and which you are the first to be informed of. They are very good.
Slide 18: First quarter 2006 results
Sales are again up 20% at EUR 2 357 million, whilst operating profit is 34% higher at EUR 293 million. This has taken our operating margin to 13%, from 11% in the first quarter of 2005.
These very good results reflect the strong upward movement of our Pharmaceuticals activities, growth in Chemicals and a very good performance in Plastics.
The Group's first quarter earnings are much less influenced by non-operating elements than in the first quarter of 2005. This explains the reduction in net income. The net debt to equity ratio is down at 37% from 43% at the end of 2005.
In the coming weeks, the Solvay group will be seizing the opportunity of good capital market conditions to strengthen its financial structure and consolidate its long-term debt. To this end, the Solvay group has decided to issue a hybrid financial instrument in an amount of EUR 500 million. This instrument, which will be non-dilutive, will carry a fixed interest rate for the first ten years.
Slide 19: First quarter 2006 results
Sales in the Pharmaceuticals Sector (EUR 672 million) are up 56%. This rise is spread across all therapeutic fields, in particular the “Cardiometabolics” cluster, including EUR 114 million for fenofibrate, the Fournier Pharma blockbuster, which is amply living up to our expectations. Our research efforts (EUR 108 million: 16% of sales) are up significantly on the first quarter of 2006. The operating profit for the Sector is particularly high in the first quarter of 2006, and at EUR 124 million is practically double that of the same period in 2005, which did not include the Fournier figures. For 2006 as a whole, Solvay Pharmaceuticals’ earnings and margins will be higher than in 2005. For this reason the Pharmaceuticals Sector is confident in its ability to reach the ambitious objectives for 2010 announced in its ambitious INSPIRE project.
Sales in the Chemicals sector increased by 13%. Profit (REBIT of EUR 88 million) was up 7% in the first quarter of 2006 compared with the already high figure for the first quarter of 2005. This performance reflects the continuing good global balance between supply and demand, strict cost control and rising sales prices in certain activities, in particular soda ash and fluorinated specialities, in a context of very high energy prices.
Sales in the Plastics Sector rose by 8%. Profits (REBIT of EUR 104 million) have remained close to (-2%) the exceptional levels of the first quarter of 2005. Specialties (Specialty Polymers and Inergy Automotive Systems) have improved their profits versus the first quarter of 2005 thanks to higher volumes, with price rises globally limiting the impact of higher costs. The performance of our Vinyls cluster is in line with the fourth quarter of 2005, but is down on the exceptionally strong first quarter of 2005. The recovery we are seeing in PVC demand, after stronger than expected demand at this time of year, should enable price rises to continue against a background of significantly higher ethylene prices.
Slide 20: Prospects for 2006
Making any prognosis for the year is always a perilous exercise, in particular with the price of a barrel of oil rising sharply. As regards Solvay, our three Sectors of activity, Pharmaceuticals, Chemicals and Plastics, have had a very good start in 2006. Overall for 2006, the Solvay group should record higher sales and operating results, taking into account the current macroeconomic conditions.
6 – Key messages
Let us now come to the last key messages you will hear from me as Chairman of the Executive Committee
Slide 21: Three messages
My first message concerns the Group’s 5 values: ethical behaviour, respect of persons, customer care, empowerment and teamwork. We have made solid progress here, but still have a way to go. Every person in the Group needs to reflect these values in their behaviour. The reprehensive acts of a handful of people can have particularly heavy consequences for all of us. The peroxide case is a regrettable and unacceptable example of this. A whole system, including a reworking of our Code of Conduct, has been introduced to prevent such a situation ever occurring again. Everyone knows that the failure to observe these values represents grave misconduct with potentially serious consequences. A training programme on this subject is being taken by all employees.
The second message I want to leave with you concerns innovation. You know just how important it has become in Europe, for everyone, and of course for our companies. We have not shirked our responsibility in this area. Our most recent initiatives include:
Setting up a New Business Development department, piloted by the New Business Board, which also includes non-Solvay members;
Taking an interest in the development of fuel cells in partnership with Umicore – with Solvay developing the polymers and membranes and Umicore the catalysts.
Innovation capacity will be from now on be included in everyone’s performance assessment. Moreover we shall be organizing this year our fourth Solvay Innovation Trophy awards.
My final message is that we must pay greater attention to Asia. We are making progress, but need to liven up the pace. We are working on this, as you will have noticed, and will be coming up with further initiatives.
7 - Conclusions
Let me conclude this presentation with three comments:
Slide 22: My thanks
The first is to express our very warm thanks to Daniel Janssen. Daniel, you have continued in the line of your forefathers and of our Values. Like them you have given a new impetus to our Group, with an emphasis on growth regions. You have clearly shown us the importance of the financial dimension for business, internally with balance sheets and operating accounts and outside by developing communication and relations with this very particular community.
You have constantly encouraged us on the path of pharmaceuticals. Thank you Daniel, we have worked as a team for 13 years. What an adventure and what a success!
Slide 23: My thanks
The second comment relates to my departure as CEO:
I have been surrounded by an excellent team. We have discussed strategy and operating matters together without power conflicts. We only ever had one objective: implementing what we had decided to do and moving forward.
I thank every member of this team.
Redefining our values, introducing a more appropriate organization, setting strategies and enabling them to evolve, and transferring as many assets and persons in one way or another as we have, would have been impossible without a tightly-welded team. This tightly-welded team is perhaps the best asset that I pass on to my excellent successor Christian Jourquin.
Slide 24: My confidence
My third comment concerns the thanks I owe to the many persons who have supported me and placed their trust in me:
my wife and my children, the Honorary Presidents and the present and former Directors
the financial world, whether as shareholders or onlookers, customers and suppliers
and finally, all our employees.
I am counting on all of you to support me just as much in my new function.
Our company, its shareholders and its employees deserve this.
oOOo
Speech by Mr. Christian Jourquin
Chairman-designate of the Executive Committee
Ladies and Gentlemen,
Chairmen,
Dear Colleagues,
This is for me one of the most important moments in my life.
To take over the chair of the Solvay Executive Committee, following in the steps of Aloïs Michielsen, Baron Daniel Janssen and Jacques Solvay, three chairmen whom I have been privileged to know, is both a daunting charge and an honour.
I fully recognize the trust that the Chairman and the members of the Board of Directors have placed in me by calling me to this position of responsibility, the demands and challenges of which I am very conscious of.
Let me render homage here to Aloïs Michielsen, who has so successfully stimulated a sense of entrepreneurship within our Group and who has led it to the successes which we know and which he has described to us. Thank you also to Baron Daniel Janssen, who steered our ship through the rough waters of the 1990s and was a powerful and essential driving force in bringing about our present focus on specialties, pharmaceuticals and Asia. Thank you also to Mr Solvay, whom I knew at the start of my career and whose long-term business vision and sense of human I have always admired.Thank you also to all my predecessors who have succeeded not only in building a winning company, but in developing a corporate culture.
Throughout my professional path, 35 years dedicated entirely to Solvay, I have been able, in different European countries and later as head of different Group sectors, to work with and learn from a host of senior managers and fellow-employees, whose skills remain one of Solvay’s greatest assets. I look forward to continuing to work with them.
During these years I was also able to familiarize myself with this culture which is so particular to Solvay and which is the envy of many.
The challenge I put before you is a very simple one: Solvay is for all of us a source of justified pride. Let us together continue the task begun 143 years ago, let us perpetuate this sense of pride and carry the Group towards its future successes.
You will already have learned of my intentions, which I have set out in our Annual Report, but today, on this very special day, I would like to present them to you from a special angle!
On becoming the 9th Chairman of the Solvay Executive Committee, it is a TREASURE house that has been entrusted to me.
This TREASURE consists of all the successes our Group has accumulated over the years. Among them, and apart from our historical anchoring, we can mention:
Our entry into the USA, and later into Asia, with our industrial activities
Our entry into life sciences
The difficulties we have overcome, like wars, economic crises and oil crises.
The new avenues we have opened up, both in our preferred fields of science and technology, but also in those of corporate social responsibility.
Holding the key to such a treasure house brings with it DUTIES and EXPECTATIONS.
The DUTIES form the bedrock of our company. I commit, together of course with all my Executive Committee colleagues, to applying them and making sure they are applied:
Respecting the Group’s five Values in all circumstances
Maintaining Solvay’s character as an effective, innovative and entrepreneurial industrial group
Making it ever more attractive for our shareholders, our employees and our customers
Promoting the growth and development of skills and competences wherever necessaryMaintaining constructive dialogue with all stakeholders
Thinking not only in the short-term, but in the long term as well.
The EXPECTATIONS are easily expressed: making this treasure grow even larger with fruitful initiatives.
This means actively pursuing our sustainable and profitable growth projects wherever we have major advantages, and wherever growth is to be found.
All these projects are possible only with the skills, trust and respect of the men and women who make up our company.
DUTIES AND EXPECTATIONS are values to which I am personally attached, and which will keep us active as an Executive Committee.
Thank you for your attention, your confidence in me and your support.
