Underlying ebitda evolution
FY yoy underlying EBITDA bridge (in €million)

Underlying EBITDA (bar chart)

Underlying EBITDA grew 7% to €2,230 million. Excluding conversion forex and scope effects, it grew 10%, driven by the 16% effect of volume growth, which more than offset the 7% increase in fixed costs and higher raw material and energy costs. The result also reflects a one-time synergy benefit of €38 million in the former Cytec businesses. The underlying EBITDA margin was sustained at 22%.

  • Foreign exchange impacted conversion by -1%, following the depreciation of the US dollar and to a lesser extent the Chinese renminbi in the second half of the year.
  • The higher volumes added 16% to EBITDA.
  • Fixed costs went up. Although operational excellence and synergy benefits largely compensated for inflation, volume increases and new capacities expanded the cost base. Higher profitability also led to an increase in provisions for variable remuneration.
  • Net pricing was down and affected EBITDA by -2%, as the increase in raw material and energy prices could only partly be compensated by commercial and operational excellence.
  • Other elements added €50 million net to EBITDA and consist mainly of one-time elements, including the €38 million synergy benefit on post-retirement obligations in the former Cytec businesses, as well as a €17 million total indemnity over the year for the loss of some production assets in China.