Christophe Clemente, president of Solvay's Soda Ash & Derivatives business, presented Solvay's perspective on the soda ash industry at the 2017 IHS World Soda Ash Conference. The soda ash market has seen moderate growth of around 1-2% annually in recent years. However, there is currently overcapacity globally excluding China. Solvay is well positioned due to its cost competitiveness from continuous improvements and global footprint. Maintaining cost leadership will remain important for profitability as the industry faces uncertainties from factors like energy prices, currency fluctuations, and geopolitics. Solvay is also committed to sustainability and maintaining a responsible dialog with stakeholders.

1. SOLVAY'S PERSPECTIVE
ON THE INDUSTRY DYNAMICS, CHALLENGES AND
OPPORTUNITIES
IHS World Soda Ash Conference,
September 21st 2017
Christophe CLEMENTE
President of Soda Ash
& Derivatives Business
Solvay

2. 2.5
Capacity
Demand
Main Soda Ash
exports in MT
W. EUROPE
NORTH EAST ASIA
MIDDLE EAST
NAFTA
SOUTH AMERICA
AFRICA
SOUTH EAST ASIA
INDIAN SUBCONTINENT
CAPTION
CIS & BALTICS
0.9
0.9
0.2
0.2
4.23.6
0.2
0.3
1.9
0.3
0.3
2.50.3
2.7
0.2
0.7
1.3
6.6
13.4
5.6
6.2
25.6
30.1
3.44.6
2.9 2.4
2
0.3 0.1
0.1
xx
Source: IHS Markit IHS Connect - Chemical Supply & Demand 13 09 2017; 2017 World Soda Ash Analysis Tableau Q2 Update
Note: Middle East incl. Turkey; CIS & Baltic states incl. Russia
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017
0.3
1.4
3.8
C. EUROPE
0.7
0.5
0.1
0.3
SODA ASH IS A GLOBAL AND INTERCONNECTED MARKET
~13 MT (24% OF TOTAL DEMAND) TRADED WORLDWIDE
2016 Capacity and Demand balance

3. 3
37.6
11.8
7.2
18.6
31.7
10.8
6.7
14.2
2014
31.2
10.6
6.6
13.9
11.4
6.6
13.1
2010
30.2
10.9
6.6
12.6
30.5
10.7
6.5
13.3
2012
31.0
11.1
6.5
13.5
2011
31.2
2022
0.8% 2.0%
1.3% 2.6%
2013 2017
33.0
11.2
6.8
15.1
2016
32.2
11.0
6.6
14.7
2015
EUROPE
NAFTA
ROW
9.2
2015
17.3
5.2
9.2
2014
17.0
5.1
9.0
2013
16.6
5.0
9.0
2012
16.4
5.1
9.4
2011
16.6
5.1
9.4
2010
15.9
5.0
9.2
2022
20.6
6.6
10.4
2017
18.1
5.5
9.5
2016
17.7
5.3
GLASS
DETERGENCE
OTHERS
IHS
CAGR
• World Soda Ash demand (excl. China)
has grown at 1.3% CAGR in the past
7 years
• The last 3 years have shown an
acceleration at 2% growth which
seems a reasonable perspective for
the years to come
Soda Ash Demand
Caption
23.0
2012
22.3
2011
21.5
2010
18.5
24.0
2017
25.5
1.1%0.7%
2022
3.8%
2016
6.3%
2013
23.5 24.0
2015
23.8
2014
World (excl. China) SA demand by Region (in Mt/yr)
World (excl. China) SA demand by End Use (in Mt/yr)
China SA demand(in Mt/yr) IHS
CAGR
Source: IHS Markit IHS Connect - Chemical Supply & Demand 13 09 2017
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017
A RESILIENT MARKET
LIMITED CONTINUED GROWTH IN SODA ASH DEMAND

4. WITH MANY UNCERTAINTIES
RELATIVE PRODUCERS COMPETITIVENESS CAN SHIFT
4
Chinese
Exports
Energy
Currency
Exchange
Freight
Geopolitics
Baltic Handy Size Index
EUR/USD Currency Exchange Chinese Exports (MT)
API2 Index
Political Stability Trade Regulations Environmental Regulations
Source: IHS Markit GTA; Quandl; European Central Bank
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

5. CHANGING SUPPLY DEMAND DYNAMICS
PRICE IMPACT?
5
Global overcapacity (excl. domestic China)
Source: IHS Markit IHS Connect - Chemical Supply & Demand 18 07 2017; IHS Price & Economic Series 24 07 2017
Note: (*) Mothballing
Increase Capacity
Demand Decline
Capacity Decrease
Demand Growth
(EU & RoW)
Demand Growth
Potential Restructuring
Capacity
Increase
IHS – US Dom-Export Ave., FOB Wyoming, $/mt, Constant
IHS – Europe Contract Del., €/mt, Constant
2009
TATA Delfzijl
(420 kt)
2014
TATA Winnington (560 kt)
SOLVAY Povoa (240 kt)
PENRICE Osbrone (340 kt)
TATA Magadi(*) (360 kt)
2016
CENTRAL GLASS Ube (200 kt)
SOLVAY Alex. (*) (105 kt)
IHS forecast
Capacity
Expansion
OVERCAPACITY
Plant Closures
/ Mothballing Capacity Increase
& Demand drop
(NOTTOSCALE)
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

6. CHANGING SUPPLY DEMAND DYNAMICS
FAIR PRICE FOR EXPANSION / INVESTMENTS
6
IHS forecast
Average estimated price justifying an investment in Greenfield Capacity*
Average estimated price justifying an investment in Capacity Expansion*
Global overcapacity (excl. domestic China)
(NOTTOSCALE)
Source: IHS Markit IHS Connect - Chemical Supply & Demand 18 07 2017; IHS Price & Economic Series 24 07 2017
Note: (*) Worldwide Industry Solvay analysis , Solvay estimates for new capacity using the Solvay synthetic process
Increase Capacity
Demand Decline
Capacity Decrease
Demand Growth
(EU & RoW)
Demand Growth
Potential Restructuring
Capacity
Increase
OVERCAPACITY
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

7. • In this very competitive environment Solvay is well positioned
• Least competitive plants might face restructuring pressure
COST COMPETITIVENESS
KEY SUCCESS FACTOR IN THE SODA ASH INDUSTRY
7
Demand
Ave. FOB
cash cost ($/t)
Freight to FOB
Cash Cost
Supply (Soda ash plants)
Over Capacity
At Risk
Solvay
“World-class”
assets
Solvay
“Local”
assets Natural
Synthetic
Eur 1st
tier US Eur
Note: Directional schematic representation of the global soda ash industry "cost curve". Each bar
represents the aggregated capacity (x-axis) and average production and freight-to-FOB costs (y-
axis) of plants sharing a similar cost profile. Relative competitiveness may vary locally.
2018 Directional Worldwide Industry Cost Curve
Source: Solvay estimates based on public information
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

8. SOLVAY BREAKTHROUGH ACTIONS
CONTINUOUSLY ENHANCING COMPETITIVENESS
8
Continuous improvements through:
• Reduction of variable costs
• Enhancement of manufacturing
excellence
• Implementation of digital
breakthroughs
2017-2019
Costs savings = € 100 million
• 60% variable costs (energy, raw material and
logistics)
• 20% fixed costs
• 2014: Closure of Povoa plant
• 2016: Mothballing of Alexandria site
• 20% maintenance savings across plants
reducing cost base by 20%
2013-2016
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

9. SOLVAY, A TRULY GLOBAL FOOTPRINT
9
Green-River
Torrelavega
Dombasle
Rheinberg Bernburg
Map Tha Put
Devnya
Rosignano
Houston
Europe
Singapore
Sao Paulo
Plants ( Bicar only)
Offices Depots
Regional Representation
Parachute
World Class
Assets
Local
Assets
• Offering both natural and synthetic - dense and light - soda ash
• Providing safety of supply through our global network of plants and sales offices
• Having a unique global reach thanks to our logistics networks
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

10. SOLVAY’S COMMITMENT TO BECOME A MODEL FOR SUSTAINABLE
CHEMISTRY
10
Soda Ash & Derivatives business is contributing to Sustainability targets
80%
Employee engagement
index
People
engagement
-50%
of occupational
accidents with MTAR
target < 0.50
Safety
-40%
Reduction of carbon
intensity
CO2 Societal actions
X2
Employees involved in
societal actions
(from 20% in 2014 to
40% in 2025)
50%
Share of sustainable
solutions in the Group
portfolio
SPM
Solvay
By 2025
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

11. For a responsible chemical industry: Solvay is committed to the “Responsible Care®” World Charter. This
global chemical industry initiative aims to achieve continuous improvement in the safe handling of
chemical substances from their initial development to their final use.
For a responsible dialog: on December 17, 2013, Solvay signed a Corporate Social and Environmental
Agreement for the whole Group with IndustriALL Global Union. This agreement expresses Solvay’s
determination to ensure that basic labor rights and Group’s social standards in the areas of health,
safety, and environmental protection are respected on all of its sites.
For human rights: Solvay participates in the UN Global Compact and is committed to upholding its
principles, contributing to the emergence of a sustainable and inclusive global economy which delivers
lasting benefits to people, communities, and markets.
As a member signatory of the UN Global Compact, Solvay has an impact and contributes to all of the UN
Sustainable Development Goals (SDGs) through its daily business and its products and solutions.
Solvay is committed to maintaining a dialog with stakeholders and is a member of several associations:
WBCSD, ICCA BusinessEurope, ERT, Cefic, ACC, ABIQUIM, AICM CPCIF, Gri, COP, TCFD, SBT……
Association
Membership
SOLVAY’S COMMITMENT TO BECOME A MODEL FOR SUSTAINABLE
CHEMISTRY
11 Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

12. KEY TAKE-AWAYS
12
Soda ash demand has a perspective of constant moderate growth for the 5 coming years.
Soda ash customers deserve long term quality and reliability of supply.
Supply/Demand can be disturbed on the short term by many different events.
Solvay has a long term commitment to its soda ash business, and has capacity to supply despite uncertainties.
Solvay has successfully restructured its network. Through continuous improvements, Solvay preserves its cost
competitiveness.
Long term fair equilibrium price is needed for soda ash industry to invest in robust networks.
Sustainability is a key lever for the future:
• Solvay believes and cares about people
• Solvay believes innovative chemistry holds the sustainable solutions for future generations
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

13. QUESTIONS & ANSWERS

14. SPEAKER’S
RESUME
14
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

15. SPEAKER’S RESUME
15
Christophe Clemente
began his career in Rhone-Poulenc in 1990. He held various executive positions
in Europe and the USA: VP & Finance Director of Novecare from 2000 to 2002,
VP General Manager of North America for Novecare from 2003 to 2006, VP
General Manager of Novecare Europe from 2007 to 2012.
He joined the Integration Management Office in 2012, becoming Head of
Strategy for Essential Chemicals in January 2013 and was appointed President of
the Global Business Unit Soda Ash & Derivatives in January 1, 2014.
President, Soda Ash &
Derivatives
Christophe
Clemente
Solvay Soda Ash & Derivatives – IHS Markit WSA Conference 2017
21 Sept 2017

16. www.solvay.com