SOLVAY GROUP FINANCIAL REPORT - FOURTH QUARTER & FULL YEAR 2016 - HIGHLIGHTS

Press release - CEO Video - Toolkit

Brussels, February 24, 2017 

• 16% EBITDA increase in the fourth quarter with growth in all segments 
• Solid full-year performance with 7.5% EBITDA increase,
  leading to 21% record margin and free cash flow of € 876 million
• Full-year dividend⁽¹⁾ raised 4.5% to € 3.45 gross per share

             

Fourth quarter 2016 results⁽²⁾

• Net sales totaled € 2.8 billion, up 1.6%, mainly due to the 3.9% increase in volume, partially offset by the (2.2)% reduction of sales prices.
• Underlying EBITDA grew 16% to € 527 million. Volumes contributed 9.1%, across the operating segments, supported by less pronounced seasonality. Pricing power contributed 9.7%, benefiting from operational excellence delivery. The EBITDA margin reached 19% in the quarter, up 2.4 percentage points year on year.
  • Advanced Materials rose 6.1% to € 259 million year on year with good volume growth in automotive, industrial, consumer goods and healthcare which more than offset lower volumes in smart devices and aerospace;
  • Advanced Formulations increased 5.6% to € 124 million year on year with a pick-up in volume growth, as strong performance in agro more than offset a drop in oil & gas, which improved sequentially on the back of a higher rig count;
  • Performance Chemicals were 17% higher at € 168 million year on year as a result of solid volume growth, benefits from lower energy costs and excellence initiatives across the segment;
  • Functional Polymers grew 131% to € 51 million year on year, primarily driven by robust polyamide performance;
  • Corporate & Business Services was at € (75) million, equal to the fourth quarter of 2015.
• Profit attributable to Solvay share, on an IFRS basis was € 245 million versus € 112 million in 2015. On an underlying basis it was € 183 million versus € 136 million in 2015, reflecting a rise in operating profit with higher net financial charges partially offset by lower income taxes.
• Free cash flow was € 412 million, stable versus the fourth quarter of 2015.
• Net debt on an IFRS basis was € 4.4 billion. Underlying net debt⁽³⁾ increased slightly to € 6.6 billion from € 6.5 billion at end-September.

(1) Recommended dividend pending General Shareholders meeting.