Solvay
2019 Annual Integrated Report
  1. NOTE B18 IFRS EBITDA
  2. NOTE B19 IFRS EBIT
  3. NOTE B20 IFRS Net financial charges
  4. NOTE B21 IFRS Income taxes
  5. NOTE B22 IFRS Discontinued operations
  6. NOTE B23 IFRS Profit for period

Besides IFRS accounts, Solvay also presents alternative performance indicators to provide a more consistent and comparable indication of the Group’s underlying financial performance and financial position, as well as cash flows. These indicators provide a balanced view of the Group’s operations and are considered useful to investors, analysts and credit rating agencies as these measures provide relevant information on the Group’s past or future performance, position or cash flows. These indicators are generally used in the sector it operates in and therefore serve as a useful aid for investors to compare the Group’s performance with its peers. The underlying performance indicators adjust IFRS figures for the non-cash Purchase Price Allocation (PPA) accounting impacts related 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 that would distort the analysis of the Group’s underlying performance.

FY consolidated income statement

In € million

FY 2019

FY 2018 PF

IFRS

Adjust­ments

Under­lying

IFRS

Adjust­ments

Under­lying

Sales

11,227

11,227

11,299

11,299

of which revenues from non-core activities

983

983

1,042

1,042

of which net sales

10,244

10,244

10,257

10,257

Cost of goods sold

(8,244)

2

(8,242)

(8,258)

2

(8,256)

Gross margin

2,983

2

2,985

3,042

2

3,043

Commercial costs

(381)

(381)

(373)

(373)

Administrative costs

(950)

28

(922)

(1,005)

35

(970)

Research & development costs

(323)

3

(321)

(297)

3

(294)

Other operating gains & losses

(131)

182

51

(123)

197

74

Earnings from associates & joint ventures

95

(3)

92

44

30

74

Result from portfolio management & reassessments

(914)

914

(208)

208

Result from legacy remediation & major litigations

(61)

61

(86)

86

EBITDA

2,222

99

2,322

2,030

301

2,330

Depreciation, amortization & impairments

(1,906)

1,087

(818)

(1,036)

260

(777)

EBIT

316

1,187

1,503

994

560

1,554

Net cost of borrowings

(141)

13

(128)

(134)

(134)

Coupons on perpetual hybrid bonds

(105)

(105)

(112)

(112)

Interests and realized foreign exchange gains (losses) on the RusVinyl joint venture

(18)

(18)

(21)

(21)

Cost of discounting provisions

(105)

20

(85)

(77)

3

(74)

Result from equity instruments measured at fair value through other comprehensive income

4

4

Profit/(loss) for the period before taxes

74

1,097

1,171

783

429

1,212

Income taxes

(153)

(151)

(305)

(73)

(230)

(303)

Profit/(loss) for the period from continuing operations

(79)

946

866

710

199

909

Profit/(loss) for the period from discontinued operations

236

11

247

201

15

216

Profit/(loss) for the period

157

957

1,113

910

215

1,125

attributable to Solvay shareholders

118

956

1,075

871

214

1,085

attributable to non-controlling interests

38

1

39

39

40

Basic earnings per share (in €)

1.15

9.27

10.41

8.43

2.08

10.51

of which from continuing operations

(1.14)

9.16

8.02

6.49

1.93

8.42

Diluted earnings per share (in €)

1.15

9.25

10.39

8.40

2.07

10.46

of which from continuing operations

(1.14)

9.14

8.01

6.46

1.92

8.38