Solvay S.A. : Solvay: Full year and Q4 2012 business review Brussels, February 14^th, 2013 Highlights Q4 2012 · Net sales € 2,989 m, up 4% yoy with stable volumes, prices +2%, forex +2% · Adj. REBITDA at € 430 m, up 22% yoy · Specialty Polymers and Consumer Chemicals continued delivering yoy double-digit growth, whilst Essential Chemicals remained very robust and Acetow & EcoServices resilient · Difficult market conditions prevailed for Polyamide and Vinyls, and Rare Earths still suffered from Lighting market's slow down · Partial reversal of soda ash impairment of € 149 m · Adj. EBIT at € 349 m compared to € 196 m last year · Free Cash Flow of € 251 m · Solvay Indupa reported as Assets held for sale as from Q4'12 Highlights FY 2012 · Net sales up 2% yoy to € 12,435 m, with volumes (4)%, prices +2%, forex +3% and scope +1%. · Adj. REBITDA at € 2,067 m, up 2% yoy · Confirmed pricing power · Integration completed and faster delivery of cost efficiencies (€ 170 m in 2012 and € 400 m anticipated to 2014, vs 2010 cost base) · Adj. EBIT at € 1,451 m compared to € 1,420 m last year · Adj. Net Income (Group Share) of € 710 m compared to € 727 m in 2011 pro forma · Free Cash Flow of € 787 m and improved Net Debt to € 1.1 bn versus € 1.8 bn in 2011 Dividend proposed: EUR 3.20 gross per share, +4.3% compared to 2011 IFRS measures (non-PPA adjusted) PPA charges relate to the impacts from the step-up of inventories and the Depreciation & Amortization from Rhodia's revalued assets upon the acquisition. Overall net after-tax impact amounted to € (126) m in 2012. · EBIT: FY'12 at € 1,275 m vs € 555 m in 2011; Q4'12 at € 317 m versus € 7 m the last year quarter; · Net Income (Group Share): FY'12 at € 584 m vs € 247 m in 2011; Q4'12 at € 181 m versus € (23) m the last year quarter; Quote of the CEO Despite the difficult trading conditions experienced by our cycle sensitive businesses throughout the year, the mobilization of our teams and the strong delivery in cost efficiencies and integration synergies allowed us to meet profitability and exceed cash generation expectations. Beyond this performance, 2012 achievements were instrumental in strengthening Solvay's foundations. We successfully completed the integration and the transformation of the Group, set up a clear strategic vision and put in place a more agile and decentralized organization to support our value creative ambition. Outlook The macroeconomic environment remains contrasted in the beginning of the year, in line with the preceding quarter. The situation in Asia is improving and North America is pursuing its recovery path. However, the situation remains uncertain in Latin America and challenging in Europe. In this context, the Group will continue reshaping its business portfolio, optimizing its industrial footprint, and enhancing the implementation of operational excellence initiatives across the board. Solvay is committed to deliver on its €3 billion REBITDA ambition in 2016 at constant perimeter and will maintain selective investments to support its growth engines. Footnotes - Solvay Indupa, Vinyls South America activity is reported as "Assets held for sale" as from Q4'12. As a consequence and for comparability purposes, all historical references within this report has been restated to present Solvay Indupa as discontinued activities and as "Assets held for sale". - Net sales comprise the sales of goods and value-added services corresponding to Solvay's know-how and core business. Net sales exclude other revenues primarily comprising commodity and utility trading transactions and other revenue deemed as incidental by the Group. - Adj. REBITDA: Operating result before depreciation and amortization, non-recurring items, financial charges and income taxes Adjusted Profit & Loss indicators exclude non-cash Purchase Price Allocation (PPA) accounting impacts related to the Rhodia acquisition. - Cash flow from operating activities (including dividends from associates and joint ventures) + cash flow from investing activities (excluding acquisitions and sales of subsidiaries and other investments). All references to year-on-year (yoy) evolution must be understood on a pro forma basis for 2011, as if the acquisition of Rhodia had become effective from the 1st of January 2011. On a pro forma basis Solvay 2011 historical figures were restated in order to harmonize accounting policies among the two Group Legacies. Pro forma results exclude impacts from i) purchase price allocation entries; ii) non-recurring acquisition costs related to the Rhodia transaction and iii) financial revenues on cash deposits and investments. All period changes throughout this document are to be deemed on a yoy pro forma 2011 basis unless otherwise stated. As an international chemical group, Solvay assists industry in finding and implementing ever more responsible and value-creating solutions. The Group is firmly committed to sustainable development and focused on innovation and operational excellence. Solvay serves diversified markets, generating 90% of its turnover in activities where it is one of the top three worldwide.The Group is headquartered in Brussels, employs about29,000 people in 55 countries and generated 12.4 billioneuros in net sales in 2012. Solvay SA SOLB.BE) is listed on NYSE Euronext in Brussels and Paris (Bloomberg: SOLB.BB - Reuters: SOLBt.BR). For further details, please contact: Lamia Narcisse Erik De Leye Maria Alcon-Hidalgo Patrick Verelst Media Relations Media Relations Investor Relations Investor Relations +33 1 53 56 59 62 +32 2 264 1530 +32 2 264 1984 +32 2 264 1540 You can find here the press release in PDF ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Solvay S.A. via Thomson Reuters ONE HUG#1678052
Solvay S.A. : Solvay: Full year and Q4 2012 business review
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