Solvay S.A.: Solvay restates financial information following discontinuation of polyamide and updates 2017 guidance

Brussels, September  19,  2017,  07:10 ---  Solvay  publishes  today  restated 
consolidated financial information for 2015, 2016 and the first half of  2017, 
reflecting the reclassification  in discontinued operations  of the  polyamide 
activities to be  sold to  BASF. The  planned divestment,  with an  enterprise 
value of €1.6 billion, is aimed to  close in the third quarter of 2018,  after 
completion of consultation  with the  relevant social bodies,  and subject  to 
certain conditions including customary regulatory approvals.  

Solvay's full year  guidance is updated  to reflect the  perimeter change  and 
significant changes  in  exchange  rates.  The  Polyamide  business  performed 
particularly strongly this  year and its  discontinuation reduces the  Group's 
2017 EBITDA growth. The weakening of  most foreign currencies versus the  euro 
also reduces  profit reported  in  euros.  Based  on current  exchange  rates, 
Solvay estimates 6% to 8% underlying EBITDA growth for the full year 2017. 

Solvay remains on  track to achieve  the previous guidance  of more than  €800 
million of free cash flow.

"This development is  another significant  milestone in the  evolution of  our 
portfolio.  Further, the continued focus on operational performance  positions 
us well to continue to  deliver on all our strategic commitments," said  Karim 
Hajjar, CFO of Solvay.

The table below summarizes the changes to underlying ^ [1] key figures.    

Underlying      2015 FY pro forma ^ [2]                2016 FY                         2017 H1 
figures
               As                              As                              As
(in € m)    published Restate-ment Restated published Restate-ment Restated published Restate-ment Restated
Net sales,     11,415      (1,341)   10,074    10,884      (1,315)    9,569     5,990        (809)    5,181
of which
Performance     2,526          149    2,675     2,460          121    2,581     1,333           69    1,403
Chemicals
Functional      1,490      (1,490)        -     1,436      (1,436)        -       879        (879)        -
Polymers
EBITDA, of      2,125        (187)    1,938     2,284        (208)    2,075     1,321        (138)    1,183
which
Performance       628         (15)      612       695           23      718       374           27      401
Chemicals
Functional        141        (141)        -       222        (222)        -       153        (153)        -
Polymers
Corporate &
Business        (245)         (30)    (275)     (227)         (10)    (237)     (111)         (12)    (123)
Services
Yoy growth                                      +7.5%                 +7.1%      +15%                  +13%
of EBITDA
EBITDA            19%                   19%       21%                   22%       22%                   23%
margin
Basic
earnings
per share        5.95       (0.88)     5.07      7.06       (1.04)     6.02      5.15       (0.87)     4.27
from cont.
ops.
Yoy growth
of basic                                         +19%                  +19%      +47%                  +43%
EPS from
cont. ops.
Capex from    (1,057)           61    (996)     (929)           90    (839)     (351)           30    (321)
cont. ops.
Cash              50%                   49%       59%                   60%       73%                   73%
conversion
Free cash
flow from         394         (85)      309       736         (78)      658       245            6      251
cont. ops.
                                                                                                    

The remaining business activities in  the segment Functional Polymers will  be 
reported under the segment Performance Chemicals. These activities consist  of 
Solvay's PA6.6  fiber business  in Latin  America and  Solvay's stake  in  the 
Russian PVC joint venture Rusvinyl, which is reported according to the  equity 
method. The EBITDA restatements in  the Corporate & Business Services  segment 
result from residual costs that were previously allocated to the  discontinued 
business activities. Cost  reduction measures to  absorb these residual  costs 
will continue  to  feature  prominently  in  Solvay's  operational  excellence 
programs.

The financial reporting for the following reporting periods will be  published 
on this restated basis. The balance sheet at September 30, will represent  the 
discontinued polyamide  activity  into assets  held  for sale  and  associated 
liabilities.

More detailed figures  are provided  in the  following pages  of the  enclosed 
document and comprise:

  o Group restated income statement on an IFRS basis per quarter for 2016 and
    2017;
  o Group restated income statement on an underlying basis ^ [1] for the full
    year 2015 pro forma ^ [2] and per quarter in 2016 and 2017;
  o Group restated capex and free cash flow from continuing operations for the
    full year 2015 pro forma ^ [2] and per quarter in 2016 and 2017;
  o Segment restated net sales, underlying EBITDA and underlying EBIT per
    quarter in 2016 and 2017, as well as for the full year 2015 pro forma, and
    capex for the full year 2015 pro forma and 2016;
  o Reconciliation per quarter and year of "as published" figures with
    restated figures on an IFRS basis and on an underlying basis for 2016 and
    2017 per quarter and 2016 full year.

The 2016 full year figures on an  IFRS basis have been audited. Other  figures 
are provided on an unaudited basis, i.e. quarterly figures, underlying figures
and pro forma 2015 figures.

An  excel  version  of  the  tables  is  provided  on  Solvay's  website   on: 
http://www.solvay.com/en/investors/news_and_results/results/2017/index.html.

The financial glossary may be consulted on:          
http://www.solvay.com/en/investors/shareholders-corner/solvay-in-action/sia-glossary.html.

[1]  Besides  IFRS  accounts,  Solvay  presents  underlying  income  statement 
performance indicators to provide a more consistent and comparable  indication 
of the  Group's  financial performance.  These  adjust IFRS  figures  for  the 
non-cash  Purchase  Price  Allocation  (PPA)  accounting  impacts  related  to 
acquisitions, for the coupons of perpetual hybrid bonds, which are  classified 
as dividends under  IFRS but treated  as financial charges  in the  underlying 
statements, and for other elements to  produce a measure that would  otherwise 
distort the analysis of the Group's underlying performance.

[2]  Solvay presents pro forma financial information on an unaudited basis for
2015, as if the acquisition  of Cytec had taken  place on January 1, 2015.  It 
combines Solvay's and Cytec's income and cash flow statements on a stand-alone
basis, after alignment  of accounting policies  and purchase price  allocation 
impacts (i.e. amortization of intangible  fair value step-ups and  recognition 
in cost of  goods sold of  the inventory  fair value step-up).  The pro  forma 
information also takes into account  the estimated additional financing  costs 
related to the acquisition as well as the acquisition related costs.  However, 
expected synergies have not been reflected.

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 Solvay  is  a  multi-specialty  chemical  company,  committed  to  developing 
chemistry  that  addresses  key  societal  challenges.  Solvay  innovates  and 
partners with  customers  in diverse  global  end markets.  Its  products  and 
solutions are used in planes, cars,  smart and medical devices, batteries,  in 
mineral  and  oil   extraction,  among  many   other  applications   promoting 
sustainability. Its  lightweighting materials  enhance cleaner  mobility,  its 
formulations optimize  the  use of  resources  and its  performance  chemicals 
improve air and water quality. Solvay is headquartered in Brussels with around
27,000 employees in 58 countries. Net sales were € 10.9 billion in 2016,  with 
90% from activities where Solvay ranks among the world's top 3 leaders. Solvay
SA (SOLB.BE) is listed  on Euronext Brussels  and Paris  (Bloomberg: SOLB.BB - 
Reuters: SOLB.BR) and  in the  United  States its  shares (SOLVY)  are  traded 
through a level-1 ADR program.

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