25 February 2016
DETAILS
FY 2015 Highlights
- Net sales were € 10.6 bn, up 4% yoy.
Foreign exchange rate effects on conversion contributed 6%,
while volumes were (3)% lower.
- REBITDA totaled € 1,955 m, up 10% yoy.
Strong pricing power of 11% across all operating segments
offset the impact of negative volumes of (8)%
and an increased fixed cost base effect of (3)%, related to
new capacity from 8 sites commissioned in the year.
The conversion effect of foreign exchange fluctuations was 9%.
Excellence initiatives delivered more than € 300 m in the year,
supporting the REBITDA margin increase,
which widened by 1.0 pp to 19% of net sales.
- IFRS Net income Solvay share was € 406 m
versus € 80 m in 2014.
Adjusted Net Income Solvay share was
€ 477 m versus € 156 m in 2014.
The increase in REBITDA and lower financial charges
more than offset higher taxes, while the contribution
from discontinued operations was negative at € (55) m,
primarily due to impairments in the chlorovinyls businesses.
- Free Cash Flow amounted to
€ 387 m versus € 656 m in 2014,chiefly reflecting
higher capital investments for growth in the year,
while 2014 reported high seasonal working capital swings
and significant cash inflows from discontinued operations.
IFRS Net debt rose from € (0.8) bn to € (4.4) bn.
Including hybrid perpetual bonds, the underlying net debt
rose from € (2.0) bn to € (6.6) bn,
following the Cytec acquisition and the related funding. - CFROI of 6.9% (prior to Cytec integration),
stable versus 2014, with improvements in
Functional Polymers, supported by excellence programs,
offsetting adverse market developments in Advanced Formulations. -
Dividend recommendation of € 3.30 gross per share,
a rise of 3.3%[1].
[1] Compared to a 2014 historical dividend of € 3.40 gross per share or € 3.20 after adjusting
for a factor of 0.9398 following Solvay's Rights Issue completed on December 21, 2015
(cf. information by Solvay in its respective press releases
“3rd quarter & 1st 9 months 2015 financial report”, dated October 29, 2015 and
“Solvay finalizes financing of Cytec acquisition with 100% subscription of its rights issue”,
dated December 17, 2015.
Quote of the CEO
Jean-Pierre Clamadieu (CEO)
Solvay delivered solid REBITDA growth for 2015,
while seasonality was more pronounced than usual
in the fourth quarter due to intensified headwinds in oil and gas
and steep inventory adjustments in smart devices
at the end of the year.
Excellence programs, which continued to contribute
strongly, combined with the benefit
from foreign exchange movements
more than offset lower volumes.
Investments to support growth peaked during the year;
nevertheless cash generation was sound.
Our portfolio transformation accelerated
* with the acquisition of Cytec to boost our growth engines and
* with the creation of the INOVYN joint venture
to prepare for the exit from European chlorovinyls.
The high quality of our portfolio and our strong fundamentals
give us firm confidence for the future,
and lead us to recommend
a dividend increase of 3.3% for 2015.
WWW.CHEMWINFO.COM BY KHUN PHICHAI
