Solvay
2019 Annual Integrated Report

in € million

FY 2019

FY 2018 PF

% yoy

Net sales

4,512

4,385

+2.9%

Specialty Polymers

1,927

2,009

–4.1%

Composite Materials

1,272

1,082

+18%

Special Chem

864

852

+1.4%

Silica

449

442

+1.5%

EBITDA

1,143

1,225

–6.7%

EBITDA margin

25.3%

27.9%

–2.6pp

EBIT

801

897

–11%

EBIT margin

17.8%

20.5%

–2.7%

Capex in continuing operations

(375)

(379)

+1.0%

Cash conversion

67.2%

69.1%

–1.9pp

CFROI

8.9%

9.9%

–1.1pp

Research & innovation

(157)

(171)

+8.5%

Research & innovation intensity

3.5%

3.9%

–0.4pp

Net sales evolution
FY yoy net sales bridge (in €million)

Advanced Materials – Net sales evolution (bar chart)

Full year net sales increased by +2.9% overall and by +0.3% organically[6]. Lower volumes in Specialty Polymers’ automotive and electronics markets were offset by double-digit growth in Composite Material’s for aerospace. Prices were up across the segment.

Full year underlying EBITDA was down -6.7% and -9.3% organically[6]. Higher prices, as well as cost containment and productivity measures only partly offset the higher cost base, resulting primarily from destocking and the effect of expanded production capabilities in Composite Materials. The one-time pension-related synergy benefit of €19 million, booked in the second quarter of 2018, had a -1.5% impact on the 2019 full year EBITDA. The EBITDA margin was down -2.6pp at 25%.

[6] Organic growth excludes forex conversion and scope effects, as well as the effect from the implementation of IFRS 16. Reported growth compares to the published 2018 pro forma figures, adjusted for the implementation of IFRS 16.