5. Reconciliation of underlying and IFRS figures
- NOTE B18 IFRS EBITDA
- NOTE B19 IFRS EBIT
- NOTE B20 IFRS Net financial charges
- NOTE B21 IFRS Income taxes
- NOTE B22 IFRS Profit from discontinued operations
- NOTE B23 IFRS Profit for period
Besides IFRS accounts, Solvay also presents underlying Income Statement performance indicators to provide a more consistent and comparable indication of Solvay’s economic performance. These figures adjust IFRS figures for the non-cash Purchase Price Allocation (PPA) accounting impacts relating to acquisitions, for the coupons of perpetual hybrid bonds classified as equity under IFRS but treated as debt in the underlying statements, and for other elements to generate a measure that avoids distortion and facilitates the appreciation of performance and comparability of results over time.
FY consolidated income statement
In € million |
|
FY 2017 |
FY 2016 |
|||||||||||
Notes |
IFRS |
Adjustments |
Underlying |
IFRS |
Adjustments |
Underlying |
||||||||
Sales |
|
10,891 |
– |
10,891 |
10,045 |
– |
10,045 |
|||||||
of which revenues from non-core activities |
|
766 |
– |
766 |
476 |
– |
476 |
|||||||
of which net sales |
|
10,125 |
– |
10,125 |
9,569 |
– |
9,569 |
|||||||
Cost of goods sold |
(7,805) |
2 |
(7,803) |
(7,213) |
84 |
(7,129) |
||||||||
Gross margin |
|
3,086 |
2 |
3,088 |
2,831 |
84 |
2,915 |
|||||||
Commercial & administrative costs |
(1,437) |
42 |
(1,396) |
(1,363) |
50 |
(1,313) |
||||||||
Research & development costs |
(290) |
3 |
(288) |
(284) |
3 |
(282) |
||||||||
Other operating gains & losses |
(154) |
205 |
51 |
(200) |
214 |
14 |
||||||||
Earnings from associates & joint ventures |
44 |
27 |
71 |
85 |
(16) |
69 |
||||||||
Result from portfolio management & reassessments |
(188) |
188 |
– |
(157) |
157 |
– |
||||||||
Result from legacy remediation & major litigations |
(84) |
84 |
– |
(54) |
54 |
– |
||||||||
EBITDA |
2,029 |
201 |
2,230 |
1,932 |
143 |
2,075 |
||||||||
Depreciation, amortization & impairments |
(1,054) |
350 |
(704) |
(1,074) |
402 |
(672) |
||||||||
EBIT |
976 |
551 |
1,527 |
858 |
545 |
1,403 |
||||||||
Net financial charges |
(298) |
(96) |
(394) |
(334) |
(130) |
(464) |
||||||||
Net cost of borrowings |
(201) |
32 |
(170) |
(224) |
– |
(224) |
||||||||
Coupons on perpetual hybrid bonds |
|
(111) |
(111) |
– |
(111) |
(111) |
||||||||
Interests and realized foreign exchange gains (losses) on the RusVinyl joint venture |
|
(24) |
(24) |
– |
(26) |
(26) |
||||||||
Cost of discounting provisions |
(97) |
8 |
(89) |
(115) |
12 |
(103) |
||||||||
Result from available-for-sale financial assets |
– |
– |
– |
5 |
(5) |
– |
||||||||
Profit for the period before taxes |
|
678 |
455 |
1,133 |
524 |
415 |
939 |
|||||||
Income taxes |
197 |
(496) |
(299) |
68 |
(340) |
(272) |
||||||||
Profit for the period from continuing operations |
|
875 |
(42) |
834 |
592 |
75 |
667 |
|||||||
Profit (loss) for the period from discontinued operations |
241 |
(82) |
159 |
82 |
158 |
240 |
||||||||
Profit for the period |
1,116 |
(124) |
992 |
674 |
233 |
907 |
||||||||
attributable to Solvay share |
1,061 |
(122) |
939 |
621 |
225 |
846 |
||||||||
attributable to non-controlling interests |
56 |
(2) |
54 |
53 |
7 |
61 |
||||||||
Basic earnings per share (in €) |
|
10.27 |
|
9.08 |
6.01 |
|
8.19 |
|||||||
of which from continuing operations |
|
7.97 |
|
7.59 |
5.34 |
|
6.02 |
|||||||
Diluted earnings per share (in €) |
|
10.19 |
|
9.02 |
5.99 |
|
8.17 |
|||||||
of which from continuing operations |
|
7.92 |
|
7.53 |
5.33 |
|
6.01 |
|||||||