Solvay restates financial information following discontinuation of polyamide and updates 2017 guidance
19 Septembre 2017 - 7:10AM
Brussels,
September 19, 2017, 07:10 --- Solvay publishes today restated
consolidated financial information for 2015, 2016 and the first
half of 2017, reflecting the reclassification in discontinued
operations of the polyamide activities to be sold to BASF. The
planned divestment, with an enterprise value of €1.6 billion, is
aimed to close in the third quarter of 2018, after completion of
consultation with the relevant social bodies, and subject to
certain conditions including customary regulatory approvals.
Solvay's full year guidance is
updated to reflect the perimeter change and significant changes in
exchange rates. The Polyamide business performed particularly
strongly this year and its discontinuation reduces the Group's 2017
EBITDA growth. The weakening of most foreign currencies versus the
euro also reduces profit reported in euros. Based on current
exchange rates, Solvay estimates 6% to 8% underlying EBITDA growth
for the full year 2017.
Solvay remains on track to achieve
the previous guidance of more than €800 million of free cash
flow.
"This development
is another significant milestone in the evolution of our
portfolio. Further, the continued focus on operational
performance positions us well to continue to deliver
on all our strategic commitments," said Karim Hajjar,
CFO of Solvay.
The table below summarizes the
changes to underlying [1] key
figures.
Underlying figures |
2015 FY pro forma [2] |
2016 FY |
2017 H1 |
(in € m) |
As published |
Restate-ment |
Restated |
As published |
Restate-ment |
Restated |
As published |
Restate-ment |
Restated |
Net sales, of which |
11,415 |
(1,341) |
10,074 |
10,884 |
(1,315) |
9,569 |
5,990 |
(809) |
5,181 |
Performance
Chemicals |
2,526 |
149 |
2,675 |
2,460 |
121 |
2,581 |
1,333 |
69 |
1,403 |
Functional
Polymers |
1,490 |
(1,490) |
- |
1,436 |
(1,436) |
- |
879 |
(879) |
- |
EBITDA, of which |
2,125 |
(187) |
1,938 |
2,284 |
(208) |
2,075 |
1,321 |
(138) |
1,183 |
Performance
Chemicals |
628 |
(15) |
612 |
695 |
23 |
718 |
374 |
27 |
401 |
Functional
Polymers |
141 |
(141) |
- |
222 |
(222) |
- |
153 |
(153) |
- |
Corporate
& Business Services |
(245) |
(30) |
(275) |
(227) |
(10) |
(237) |
(111) |
(12) |
(123) |
Yoy growth of EBITDA |
|
|
|
+7.5% |
|
+7.1% |
+15% |
|
+13% |
EBITDA margin |
19% |
|
19% |
21% |
|
22% |
22% |
|
23% |
Basic earnings per share from cont. ops. |
5.95 |
(0.88) |
5.07 |
7.06 |
(1.04) |
6.02 |
5.15 |
(0.87) |
4.27 |
Yoy growth of basic EPS from cont. ops. |
|
|
|
+19% |
|
+19% |
+47% |
|
+43% |
Capex from cont. ops. |
(1,057) |
61 |
(996) |
(929) |
90 |
(839) |
(351) |
30 |
(321) |
Cash conversion |
50% |
|
49% |
59% |
|
60% |
73% |
|
73% |
Free cash flow from cont. ops. |
394 |
(85) |
309 |
736 |
(78) |
658 |
245 |
6 |
251 |
|
|
|
|
|
|
|
|
|
|
The remaining business activities
in the segment Functional Polymers will be reported under the
segment Performance Chemicals. These activities consist of Solvay's
PA6.6 fiber business in Latin America and Solvay's stake in the
Russian PVC joint venture Rusvinyl, which is reported according to
the equity method. The EBITDA restatements in the Corporate &
Business Services segment result from residual costs that were
previously allocated to the discontinued business activities. Cost
reduction measures to absorb these residual costs will continue to
feature prominently in Solvay's operational excellence
programs.
The financial reporting for the
following reporting periods will be published on this restated
basis. The balance sheet at September 30, will represent the
discontinued polyamide activity into assets held for sale and
associated liabilities.
More detailed figures are provided
in the following pages of the enclosed document and comprise:
-
Group restated income statement on an IFRS basis
per quarter for 2016 and 2017;
-
Group restated income statement on an underlying
basis [1] for the
full year 2015 pro forma [2] and per
quarter in 2016 and 2017;
-
Group restated capex and free cash flow from
continuing operations for the full year 2015 pro forma [2] and per
quarter in 2016 and 2017;
-
Segment restated net sales, underlying EBITDA
and underlying EBIT per quarter in 2016 and 2017, as well as for
the full year 2015 pro forma, and capex for the full year 2015 pro
forma and 2016;
-
Reconciliation per quarter and year of "as
published" figures with restated figures on an IFRS basis and on an
underlying basis for 2016 and 2017 per quarter and 2016 full
year.
The 2016 full year figures on an
IFRS basis have been audited. Other figures are provided on an
unaudited basis, i.e. quarterly figures, underlying figures and pro
forma 2015 figures.
An excel version of the tables is
provided on Solvay's website on:
http://www.solvay.com/en/investors/news_and_results/results/2017/index.html.
The financial glossary may be
consulted
on:
http://www.solvay.com/en/investors/shareholders-corner/solvay-in-action/sia-glossary.html.
[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.
Follow us on twitter
@SolvayGroup
Solvay is a
multi-specialty chemical company, committed to developing chemistry
that addresses key societal challenges. Solvay innovates and
partners with customers in diverse global end markets. Its products
and solutions are used in planes, cars, smart and medical devices,
batteries, in mineral and oil extraction, among many other
applications promoting sustainability. Its lightweighting materials
enhance cleaner mobility, its formulations optimize the use of
resources and its performance chemicals improve air and water
quality. Solvay is headquartered in Brussels with around 27,000
employees in 58 countries. Net sales were € 10.9 billion
in 2016, with 90% from activities where Solvay ranks among the
world's top 3 leaders. Solvay SA (SOLB.BE) is listed on
Euronext Brussels and Paris (Bloomberg: SOLB.BB -
Reuters: SOLB.BR) and in the United States its shares (SOLVY)
are traded through a level-1 ADR program. |
Caroline Jacobs |
Kimberly Stewart |
Jodi Allen |
Geoffroy Raskin |
Bisser Alexandrov |
Media Relations |
Investor Relations |
Investor Relations |
Investor Relations |
Investor Relations |
+32 2 264 1530 |
+32 2 264 3694 |
+1 973 357 3283 |
+32 2 264 1540 |
+32 2 264 3687 |
To read the complete press release
with all the annexes in PDF
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Solvay S.A. via Globenewswire
Solvay (EU:SOLB)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Solvay (EU:SOLB)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024