{ "docId": "019dd923-622b-71dc-a6db-0d51af2fde1a", "docSlug": "fa820bf52be5", "documentTitle": "Solvay SA (SOLB BB)", "authorId": "04_Greenlight_Capital", "authorName": "David Einhorn", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2024-04-03 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 40, "pageCount": 47, "prevPage": 39, "nextPage": 41, "slideType": "valuation_table", "function": "analyze_data", "density": "overcrowded", "nDataPoints": 42, "notes": "Includes pro forma financial data and consensus estimates for 2024.", "elementsJson": [ "headline_text", "valuation_table", "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6db-0d51af2fde1a/40", "deckHref": "/decks/019dd923-622b-71dc-a6db-0d51af2fde1a", "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-0d51af2fde1a.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-0d51af2fde1a#slide-40", "components": [ { "bbox": null, "kind": "callout", "text": "Even so, the P/E is just 7x on what we and management believe to be cyclically depressed results.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-78b7-702e-9629-374a1b85f7cf", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "P/E: 7.0x", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-78b7-702e-9629-384fdf3a0bbd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.135, "w": 0.764, "x": 0.118, "y": 0.49 }, "kind": "paragraph", "text": "Solvay’s market capitalization is €2.7 billion. Based on 2024 consensus, it has just 1.6 turns of debt. Consensus expects earnings of €3.62 per share this year, which is around the middle of guidance. We actually think this doesn’t take into account a moderate economic recovery in Europe, which we believe will keep earnings at about €4 per share, toward the high end of guidance. Even so, the P/E is just 7x on what we and management believe to be cyclically depressed results.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "175e0eb1-39e8-4c51-ba3f-b019ee323f0a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.135, "w": 0.764, "x": 0.118, "y": 0.49 }, "kind": "paragraph", "text": "Solvay’s market capitalization is €2.7 billion. Based on 2024 consensus, it has just 1.6 turns of debt. Consensus expects earnings of €3.62 per share this year, which is around the middle of guidance. We actually think this doesn’t take into account a moderate economic recovery in Europe, which we believe will keep earnings at about €4 per share, toward the high end of guidance. Even so, the P/E is just 7x on what we and management believe to be cyclically depressed results.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e0250a05-aead-4b7d-bbaf-81168fb0b568", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.764, "x": 0.118, "y": 0.75 }, "kind": "source-note", "text": "Source: Bloomberg LP, retrieved April 1, 2024; Solvay press release, March 13, 2024; Greenlight estimates and calculations. Please refer to note on Slide 2.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0497a0dc-ddf8-4106-bbbd-ae8e5857cb92", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.764, "x": 0.118, "y": 0.75 }, "kind": "source-note", "text": "Source: Bloomberg LP, retrieved April 1, 2024; Solvay press release, March 13, 2024; Greenlight estimates and calculations. Please refer to note on Slide 2.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "285f6a51-19eb-4ab9-9058-a7be6c2904df", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.145, "w": 0.674, "x": 0.163, "y": 0.323 }, "kind": "table", "text": "Revenues 5,540 4,880 4,516; EBITDA 1,236 1,154 930; EBIT 915 833 602; Net Income 626 569 384; EPS € 6.01 € 5.40 € 3.62; EV/Sales 1.0x 1.1x 1.2x; EV/EBITDA 4.5x 4.8x 5.9x; EV/EBIT 6.0x 6.6x 9.2x; P/E 4.3x 4.7x 7.0x", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "31a160a5-2ecf-4a6f-8e28-604113d12dc7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.145, "w": 0.674, "x": 0.163, "y": 0.323 }, "kind": "table", "text": "Revenues 5,540 4,880 4,516; EBITDA 1,236 1,154 930; EBIT 915 833 602; Net Income 626 569 384; EPS € 6.01 € 5.40 € 3.62; EV/Sales 1.0x 1.1x 1.2x; EV/EBITDA 4.5x 4.8x 5.9x; EV/EBIT 6.0x 6.6x 9.2x; P/E 4.3x 4.7x 7.0x", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6aba5c25-5a1d-4fdb-8709-3eabc56094e6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.105, "w": 0.386, "x": 0.307, "y": 0.178 }, "kind": "table", "text": "Share Price (4/1) € 25.30; Fully Diluted Shares (M) 105.9; Market Capitalization (€ M) € 2,679; Net Debt (€ M) 1,489; Retirement/Env/Other (€ M) 1,341; Enterprise Value (€ M) € 5,509", "attrs": null, "subkind": "valuation", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "482e97d6-e1a1-4467-a012-a83415108d98", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.105, "w": 0.386, "x": 0.307, "y": 0.178 }, "kind": "table", "text": "Share Price (4/1) € 25.30; Fully Diluted Shares (M) 105.9; Market Capitalization (€ M) € 2,679; Net Debt (€ M) 1,489; Retirement/Env/Other (€ M) 1,341; Enterprise Value (€ M) € 5,509", "attrs": null, "subkind": "valuation", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8f1cb4cb-a03a-4144-addb-97fe5671c5b1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.32, "x": 0.34, "y": 0.13 }, "kind": "title", "text": "Solvay Valuation", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0872985f-0f94-420f-b930-6c6eccd24c4c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.32, "x": 0.34, "y": 0.13 }, "kind": "title", "text": "Solvay Valuation", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cbacff4b-b6ca-4368-a600-a9f208ec7434", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 44, "from": 38, "beatId": "9546bfb7-8e08-41b6-aa86-1f27c3d25686", "arcName": "The Sequoia Pitch", "arcSlug": "sequoia-pitch", "beatName": "Financials", "beatSlug": "sequoia-pitch-financials", "evidence": "The presentation presents Solvay's financial results and long-term targets.", "position": 3, "confidence": 0.8, "parentBeatName": "Evidence", "parentBeatSlug": "evidence" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }