- Index
- 1 NOTE B1 Net sales
- 2 NOTE B2 Underlying raw material & energy costs
- 3 NOTE B3 Underlying EBITDA
- 4 NOTE B4 Underlying depreciation & amortization
- 5 NOTE B5 Underlying net financial charges
- 6 NOTE B6 Underlying income taxes
- 7 NOTE B7 Underlying profit from discontinued operations
- 8 NOTE B8 CAPEX
- 9 NOTE B9 Free Cash Flow
- 10 NOTE B10 Net working capital
- 11 NOTE B11 Underlying net debt
- 12 NOTE B12 CFROI
- 13 NOTE B13 Research & Innovation
(in € million) |
|
FY 2019 |
FY 2018 PF |
Cash flow from operating activities |
a |
1,815 |
1,829 |
of which additional voluntary contribution related to pension plans |
b |
(114) |
– |
Cash flow from investing activities |
c |
(880) |
(784) |
of which capital expenditures required by share sale agreement |
d |
(59) |
(38) |
Acquisition (–) of subsidiaries |
e |
(6) |
(12) |
Acquisition (–) of investments – Other |
f |
(16) |
(4) |
Loans to associates and non-consolidated companies |
g |
10 |
(3) |
Sale (+) of subsidiaries and investments |
h |
(31) |
26 |
Recognition of factored receivables |
i |
(23) |
(21) |
Increase/decrease of borrowings related to environmental remediation |
j |
8 |
– |
Payment of lease liabilities |
k |
(110) |
(92) |
FCF |
l = a-b+c-d-e-f-g-h-i+j+k |
1,072 |
1,006 |
FCF from discontinued operations |
m |
195 |
160 |
FCF from continuing operations |
n = l-m |
878 |
846 |
Net interests paid |
o |
(118) |
(130) |
Coupons paid on perpetual hybrid bonds |
p |
(115) |
(111) |
Dividends paid to non-controlling interests |
q |
(39) |
(39) |
FCF to Solvay shareholders |
r = l+o+p+q |
801 |
725 |
FCF to Solvay shareholders from discontinued operations |
s |
195 |
160 |
FCF to Solvay shareholders from continuing operations |
t = r-s |
606 |
566 |
Underlying EBITDA |
u |
2,322 |
2,330 |
FCF conversion ratio |
v = (t-q)/u |
27.8% |
25.9% |
Full year free cash flow to Solvay shareholders[4] from continuing operations was €606 million, up €40 million year on year. Working capital was positive (€7 million) resulting from more disciplined working capital management.
Capex from continuing operations increased by +5.4% compared to €794 million in 2018. Provision payments were largely in line with last year, and taxes were up €(29) million, as expected.
Discontinued operations contributed €195 million, €35 million more than in 2018. These operations consist of the Polyamide activities sold on January 31, 2020 to BASF and Domo.
As a consequence, total free cash flow to Solvay shareholders amounted to €801 million in 2019.
[4] Free cash flow to Solvay shareholders is the free cash flow after payment of net interests, coupons of perpetual hybrid bonds and dividends to non-controlling interests. This represents the cash flow available to Solvay shareholders, to pay their dividend and/or to reduce the net financial debt. The free cash flow conversion ratio is calculated as the ratio between the free cash flow to Solvay shareholders (before netting of dividends paid to non-controlling interest) and underlying EBITDA.