Adjustments made to IFRS results for elements distorting comparability of the Group underlying performance over time. These adjustments consist of:

  • Results from portfolio management and reassessments
  • Results from legacy remediation and major litigations
  • M&A related impacts, consisting mainly of non-cash purchase price allocation impacts (e.g. inventory step-up and amortization of intangibles) and retention bonuses relative to Chemlogics and other acquisitions
  • Net financial results relating to changes in discount rates, hyperinflation, coupons of hybrid bonds considered as dividends under IFRS, and debt management impacts (comprising mainly gains/(losses) relating to the early repayment of debt)
  • Adjustments of equity earnings for impairment gains or losses and unrealized foreign exchange gains or losses on debt
  • Results from available-for-sale financial assets
  • Tax effects relating to the items listed above and tax expense or income of prior years.
  • All adjustments listed above apply to both continuing and discontinued operations, and include the impacts on non-controlling interests.

Basic earnings per share

Net income (Solvay’s share) divided by the weighted average number of shares, after deducting own shares purchased to cover stock options program.


Carechem 24 is a multilingual telephone advice service providing access to a team of trained responders 24 hours a day, 365 days a year. Carechem 24 provides companies all over the world with emergency product support during a hazardous materials incident.


European Chemical Industry Council.


Chief Executive Officer.


Chief Financial Officer.


Cash Flow Return On Investment measures the cash returns of Solvay’s business activities. Movements in CFROI levels are relevant indicators for showing whether economic value is being added, though it is accepted that this measure cannot be benchmarked or compared with industry peers. The definition uses a reasonable estimate of the replacement cost of assets and avoids accounting distortions, e.g. for impairments. It is calculated as the ratio between recurring cash flow and invested capital, where:

  • Recurring cash flow = Underlying EBITDA + Dividends from associates and joint ventures --- Earnings from associates and joint ventures +
    Recurring capex + Recurring income taxes,
  • Invested capital = Replacement value of goodwill & fixed assets + Net working capital + Carrying amount of associates and joint ventures,
  • Recurring capex is normalized at 2% of the replacement value of fixed assets net of goodwill values,
  • Recurring income tax is normalized at 30% of (Underlying EBIT --- Earnings from associates and joint ventures)Cash flow return on investment, calculated as the ratio between recurring cash flow and invested capital, where


Cash-generating unit.

Code of Conduct

Solvay is committed to responsible behavior and integrity, taking into account the sustainable growth of its business and its good reputation in the communities in which it operates.


Executive Committee.


Corporate Social Responsibility.

Diluted earnings per share

Net income (Solvay’s share) divided by the weighted average number of shares adjusted for effects of dilution.

Discontinued operations

Component of the Group which the Group has disposed of or which is classified as held for sale, and:

  • represents a separate major line of business or geographical area of operations
  • is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or
  • is a subsidiary acquired exclusively with a view to resale.

Dividend yield (net)

Net dividend divided by the closing share price on December 31.

Dividend yield (gross)

Gross dividend divided by the closing share price on December 31.

DJ Stoxx

Dow Jones Stoxx is a European stock index composed of the 665 most important European shares.

DJ Euro Stoxx

Dow Jones Euro Stoxx is a pan-European stock index which includes the 326 most important shares of the general Dow Jones index, belonging to eleven countries of the Eurozone.


Earnings before interest and taxes.


earnings before interest and taxes, depreciation and amortization.

Environmental Protection Agency

The U.S. Environmental Protection Agency (EPA or USEPA) is an agency of the United States federal government which was created for the purpose of protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress.

Equity per share

Equity (Solvay share) divided by the number of outstanding shares at year end (issued shares – treasury shares).


Global operator of financial markets and provider of trading technologies.


Fluoro-elastomer, polymer type.

Free Cash Flow

Free cash flow measures cash flow from operating activities, net of investments. It excludes any M&A or financing related activities, but includes elements like dividends from associates and joint-ventures, pensions, restructuring costs, etc. It is defined as cash flow from operating activities (excluding cash flows from expenses incurred in connection with acquisitions of subsidiaries) and cash flow from investing activities (excluding cash flows from or related to acquisitions and disposals of subsidiaries and other investments, and excluding loans to associates and non-consolidated investments, as well as related tax elements and recognition of factored receivables).

FTSEurofirst 300

The FTSEurofirst 300 Index tracks the equity performance across the region of the 300 largest companies ranked by market capitalization in the FTSE Developed Europe Index.


Global Business Unit.

Gearing ratio

Underlying net debt / total equity.


Greenhouse gas.


The Global Reporting Initiative (GRI) is a leading organization in the sustainability field. GRI promotes the use of sustainability reporting as a way for organizations to become more sustainable and contribute to sustainable development.


High-barrier polymer.


Highly Dispersible Silica.


Polyamide High Performance.


Hydrogen peroxide propylene oxide, a new technology to produce propylene oxide using hydrogen peroxide.


International Financial Reporting Standards.

Integrated reporting

This is a process founded on integrated thinking, which results in a periodic integrated report by an organization about value creation over time and related communications regarding aspects of value creation.

ISO 9001

The ISO 9001 standard defines a set of requirements for the establishment of a system of quality management in an organization, whatever its size and activity.

ISO 14001

The ISO 14001 family addresses various aspects of environmental management. It provides practical tools for companies and organizations looking to identify and control their environmental impact and constantly improve their environmental performance.

ISO 14040

The ISO 14040 standard covers life cycle assessment (LCA) studies and life cycle inventory (LCI) studies.

ISO 26000

The ISO 26000 is a global standard which provides guidelines for organizations that wish to operate in a socially responsible manner. The standard was published in 2010 after five years of negotiations among a large number of stakeholders worldwide. Representatives of governments, NGOs, industry, consumer groups, and the world of work were involved in its development. It therefore represents an international consensus.

Leverage ratio

Underlying net debt / underlying EBITDA of the last 12 months.

Loss prevention process

Loss prevention aims at maintaining production flow and profitability of the plants by providing risk mitigation. It also contributes to increasing the protection of people and the environment.


Lost Time Accident Rate.


Long Term Incentive.


Mergers and Acquisitions.

M&A related impacts

It mainly includes non-cash Purchase Price Allocation impacts (e.g. inventory step-up and amortization of intangibles other than for PPA Rhodia) and retention bonuses relative to Chemlogics and other acquisitions.


Organizations are faced with a wide range of topics on which they could report. The relevant topics are those that may reasonably be considered important for reflecting the organization’s economic, environmental, and social impacts, or influencing the decisions of stakeholders, and therefore potentially merit inclusion in an annual report. Materiality is the threshold at which aspects become sufficiently important that they should be reported.


Medical Treatment Accident Rate.

Natural Currency Hedge

A natural currency hedge is an investment that reduces the undesired risk by matching cash in and outflows.

Net cost of borrowings

cost of borrowings netted with interest on lendings and short-term deposits, as well as other gains (losses) on net indebtedness

Net debt

Non-current financial debt + current financial debt – cash & cash equivalents – other financial instrument receivables.

Net financial charges

net cost of borrowings, costs of discounting provisions (namely, related to post-employment benefits and HSE liabilities) and income / loss from available-for-sale financial assets.

Net pricing

The difference between the change in sales prices and the change in variable costs.

Net sales

Sales of goods and value added services corresponding to Solvay’s know-how and core business. Net sales exclude other revenues comprising primarily commodity and utility trading transactions and other revenue deemed as incidental by the Group.

Net working capital

Includes inventories, trade receivables, and other current receivables, netted with trade payables and other current liabilities.


Other Comprehensive Income.


Organisation for Economic Co-operation and Development.

OHSAS 18001

OHSAS 18001 is an international occupational health and safety management system specification.


Organic Light-Emitting Diode.

Open Innovation

Innovation that is enriched with outside expertise, through partnerships with the academic world and by shareholdings in start-ups, either directly or via investment funds.

Other adjustments

Adjustments made for elements distorting comparability over time of the underlying performance of the Group. They include results from portfolio management and reassessments and from legacy remediation and major litigation, M&A related impacts that include PPA impacts of acquisitions other than Rhodia and Cytec and retention bonus granted at closing date, net financial expense or income relating to change in discount rates, hyperinflation financial results and debt refinancing, adjustments of equity earnings for impairment gains or losses and unrealized foreign exchange gains or losses on debt, tax effects relating to the items listed before, tax expense or income of previous years, all adjustments listed before for continuing operations and impacting discontinued operations.


Polyamide, polymer type.


Precipitated calcium carbonate.




Unit of percentage points or 1.0%, used to express the evolution of ratios.


Purchase Price Allocation (PPA) accounting impacts related to acquisitions.

Pricing power

The ability to create positive net pricing.


Performance Share Unit.


Propylene oxide.


Polyphenylene sulfide.



Product Stewardship

A responsible approach in managing risks throughout the entire life cycle of a product, from the design stage to the end of life.


Polyvinyl chloride.


Polyvinylidene fluoride.


Research & Innovation.


REACH is the European Community Regulation on chemicals and their safe use (EC 1907/2006). It deals with the registration, evaluation, authorization, and restriction of chemical substances. The law entered into force on June 1, 2007.

Responsible Care®

Responsible Care® is the global chemical industry’s unique initiative to improve health, environmental performance, enhance security, and to communicate with stakeholders about products and processes.

Result from legacy remediation and major litigations

It includes:

  • The remediation costs not generated by on-going production facilities (shut-down of sites, discontinued productions, previous years’ pollution), and
  • The impact of significant litigations.

Results from portfolio management and reassessments

It includes:

  • Gains and losses on the sale of subsidiaries, joint operations, joint ventures, and associates that do not qualify as discontinued operations
  • Acquisition costs of new businesses
  • Gains and losses on the sale of real estate not directly linked to an operating activity
  • Restructuring charges driven by portfolio management and reassessment, including impairment losses resulting from the shutdown of an activity or a plant and
  • Impairment losses resulting from testing of CGUs.

It excludes non-cash accounting impact from amortization and depreciation resulting from the purchase price allocation (PPA) from acquisitions.

Revenue from non-core activities

Revenues comprising primarily commodity and utility trading transactions and other revenue deemed incidental by the Group, being regarded as inappropriate to Solvay’s know-how and core business.


Return on equity.

Safety Data Sheets

Safety Data Sheets are the main tool for ensuring that manufacturers and importers communicate enough information along the supply chain to allow safe use of their substances and mixtures.


Sustainability Accounting Standards Board. SASB’s mission is to develop and disseminate sustainability accounting standards that help public corporations disclose material, decision-useful information to investors. That mission is accomplished through a rigorous process that includes evidence-based research and broad, balanced stakeholder participation.

Seveso Regulations

The Control of Major Accident Hazards Involving Dangerous Substances Regulations. These regulations (often referred to as “COMAH Regulations” or “Seveso Regulations”) give effect to European Directive 96/82/EC. They apply only to locations where significant quantities of dangerous substances are stored.

Solvay Way

Launched in 2013 and aligned with ISO 26000, Solvay Way is the sustainability approach of the Group. It integrates social, societal, environmental, and economic aspects into the Company’s management and strategy, with the objective of creating value shared by all of its stakeholders. Solvay Way is based on an ambitious and pragmatic framework serving as a tool of both measurement and progress. Solvay Way lists 49 practices – practices that reflect the Solvay Way’s 22 commitments and are structured on a four-level scale (launch, deployment, maturity, performance).


Stock Option Plan.


The Sustainable Portfolio Management tool is integrated into the Solvay Way framework (linked to five practices). It serves as a strategic tool for developing information on our portfolio and analyzing the impacts of sustainability megatrends on our businesses.


Short Term Incentive.


Substance of Very High Concern (SVHC) is a chemical substance, the utilization of which within the European Union has been proposed to become subject to legal authorization under the REACH regulation.

Tax rate

Income taxes / (Result before taxes – Earnings from associates & joint ventures – interests & realized foreign exchange results on RusVinyl joint venture). The adjustment of the denominator regarding associates and joint ventures is made as these contributions are already net of income taxes.


Underlying results are deemed to provide a more comparable indication of Solvay’s fundamental performance over the reference periods. They are defined as the IFRS figures adjusted for the “Adjustments” as defined above.

Underlying net debt

Underlying net debt reclassifies as debt 100% of the hybrid perpetual bonds, considered as equity under IFRS.


Total number of shares traded during the year divided by the total number of listed shares, using the Euronext definition.


Vinyl chloride.

Velocity adjusted by free float

Velocity adjusted as a function of the percentage of the listed shares held by the public, using the Euronext definition.


World Business Council for Sustainable Development.


World Class Factory.


Year on year comparison.