Solvay restates 2015 and 2016 financial information following recent portfolio transformation steps
January 17 2017 - 1:30AM
Brussels, January 17, 2017, 07:30
--- Solvay publishes today restated consolidated financial
information for 2015 and the first nine months of 2016. The
restatement reflects the reclassification of the Acetow and
Vinythai businesses in discontinued operations following the recent
announcement of their divestment.
Solvay announced in December 2016
the agreement to sell its cellulose acetate tow business Acetow for
an enterprise value of about € 1 billion, as well as a
definitive agreement to sell its 59% stake in its Asian PVC
activity Vinythai for an enterprise, based on an enterprise value
of € 435 million. These transactions are expected to
close in the first half of 2017. The sale of the Latin American PVC
activity Indupa, which was closed in December 2016, has no impact
on the restatement as it had been discontinued previously.
The table below summarizes the
changes to underlying [1] pro forma
[2] key
figures.
Underlying key figures |
2015 FY pro forma |
2016 9M |
(in € m) |
As
published |
Restate-ment |
Restated |
As
published |
Restate-ment |
Restated |
Net sales |
12,378 |
(962) |
11,415 |
8,798 |
(680) |
8,117 |
of which
Performance Chemicals |
3,052 |
(526) |
2,526 |
2,228 |
(392) |
1,837 |
of which
Functional Polymers |
1,926 |
(437) |
1,490 |
1,367 |
(289) |
1,078 |
EBITDA |
2,336 |
(211) |
2,125 |
1,918 |
(162) |
1,756 |
of which
Performance Chemicals |
770 |
(142) |
628 |
640 |
(112) |
527 |
of which
Functional Polymers |
190 |
(49) |
141 |
204 |
(34) |
170 |
of which
Corporate & Business Services |
(225) |
(20) |
(245) |
(138) |
(15) |
(153) |
EBITDA margin |
19% |
|
19% |
22% |
|
22% |
Capex |
(1,160) |
- |
(1,160) |
(679) |
- |
(679) |
of which
from continuing operations |
(1,092) |
35 |
(1,057) |
(666) |
25 |
(641) |
Cash conversion |
53% |
|
50% |
65% |
|
63% |
Free cash flow |
492 |
- |
492 |
464 |
- |
464 |
of which
from continuing operations |
500 |
(106) |
394 |
477 |
(104) |
374 |
|
|
|
|
|
|
|
The net sales and EBITDA
restatements in the Performance Chemicals and Functional Polymers
segments reflect respectively the discontinuation of the Acetow and
Vinythai businesses. The EBITDA restatements in the Corporate &
Business Services segment result from residual costs that were
previously allocated to these discontinued business activities.
Cost reduction measures to absorb these residual costs will
continue to feature prominently in Solvay's excellence
programs.
The 2016 fourth quarter and full
year results will be published on February 24 on this restated
basis. The balance sheet will reflect Acetow and Vinythai assets
and liabilities moved into assets held for sale and associated
liabilities. The 2016 outlook for underlying EBITDA growth and free
cash flow are unaffected by the restatements.
More detailed figures are provided
in the following pages and comprise:
-
Restated income statement, capex and free cash
flow from continuing operations, as well as cash flow from
discontinued operations per quarter, both on an IFRS basis and on
an underlying pro forma basis;
-
Restated net sales, EBITDA and EBIT per quarter,
as well as capex for the full year 2015, on an underlying pro
forma basis per segment;
-
Reconciliation per quarter of "as published"
figures with restated figures on an IFRS basis, on an IFRS pro
forma basis and on an underlying pro forma basis. For
reconciliation purposes the 2015 tables also includes the
previously published impact from the Cytec acquisition, which is
not affected by the restatements.
The restated IFRS full year 2015
figures have been audited. Other figures are provided on an
unaudited basis, i.e. quarterly IFRS 2015 and 2016 figures, as well
as 2015 pro-forma figures.
Please click on the link at the
bottom of this message to read the complete press release.
[1] Besides IFRS accounts,
Solvay presents underlying income statement performance indicators
to provide a more consistent and comparable indication of the
Group's financial performance. These adjust IFRS figures for the
non-cash Purchase Price Allocation (PPA) accounting impacts related
to acquisitions, for the coupons of perpetual hybrid bonds, which
are classified as dividends under IFRS but treated as financial
charges in the underlying statements, and for other elements to
produce a measure that would otherwise distort the analysis of the
Group's underlying performance.
[2] Solvay presents pro
forma financial information on an unaudited basis for 2015, as if
the acquisition of Cytec had taken place on January 1, 2015.
It combines Solvay's and Cytec's income and cash flow statements on
a stand-alone basis, after alignment of accounting policies and
purchase price allocation impacts (i.e. amortization of intangible
fair value step-ups and recognition in cost of goods sold of the
inventory fair value step-up). The pro forma information also takes
into account the estimated additional financing costs related to
the acquisition as well as the acquisition related costs. However,
expected synergies have not been reflected.
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An international chemical
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as well as industrial applications. Solvay is headquartered in
Brussels with about 30,900 employees spread across 53 countries. It
generated pro forma net sales of € 11.4 bn in 2015, with
90% made from activities where it ranks among the world's top 3
players. Solvay SA (SOLB.BE) is listed on
Euronext in Brussels and Paris (Bloomberg: SOLB.BB - Reuters: SOLB.BR). |
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Source: Solvay S.A. via Globenewswire
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