Solvay SA

Business and Financial Review • Sep 19, 2017

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.

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

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

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 and comprise:

• Group restated income statement on an IFRS basis per quarter for 2016 and 2017;
• Group restated income statement on an underlying basis [1] for the full year 2015 pro forma [2] and per quarter in 2016 and 2017;
• 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;
• 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;
• 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.

Restated IFRS figures				2017
(in € m)	Q1	Q2	Q3	Q4	FY	Q1	Q2
Sales	2,490	2,486	2,483	2,586	10,045	2,755	2,762
of which revenues from non-core activities	111	97	112	155	476	181	155
of which net sales	2,378	2,389	2,370	2,431	9,569	2,574	2,607
Cost of goods sold	(1,842)	(1,745)	(1,734)	(1,892)	(7,213)	(1,983)	(1,939)
Gross margin	648	741	748	694	2,831	772	823
Commercial & administrative costs	(333)	(344)	(332)	(354)	(1,363)	(353)	(370)
Research & innovation costs	(72)	(70)	(68)	(74)	(284)	(72)	(71)
Other operating gains & losses	(71)	(26)	(48)	(54)	(200)	(51)	3
Earnings from associates & joint ventures	16	26	16	28	85	22	-
Result from portfolio management & reassessments	(134)	(5)	(17)	(1)	(157)	(13)	(52)
Result from legacy remediation & major litigations	(11)	(14)	(10)	(20)	(54)	(10)	(24)
EBITDA	392	543	516	483	1,932	524	550
Depreciation, amortization & impairments	(348)	(236)	(226)	(265)	(1,074)	(229)	(241)
EBIT	43	307	290	218	858	294	309
Net cost of borrowings	(62)	(57)	(55)	(50)	(224)	(54)	(48)
of which cost of borrowings	(52)	(49)	(42)	(44)	(187)	(43)	(41)
of which interest on lendings & deposits	3	3	2	4	13	5	3
of which other gains & losses on net indebtedness	(13)	(12)	(15)	(11)	(50)	(15)	(11)
Cost of discounting provisions	(30)	(27)	(27)	(31)	(115)	(26)	(21)
Result from available-for-sale financial assets	-	1	2	2	5	-	-
Profit for the period before taxes	(49)	224	210	138	524	214	239
Income taxes	9	(65)	(22)	146	68	(36)	(63)
Profit for the period from continuing operations	(39)	160	188	284	592	178	176
of which attributable to Solvay share	(42)	145	177	272	552	166	165
of which attributable to non-controlling interests	3	15	11	11	40	12	10
Profit for the period from discontinued operations	56	39	1	(14)	82	73	213
Profit for the period	17	198	189	270	674	251	389
of which attributable to Solvay share	15	185	176	245	621	235	378
of which attributable to non-controlling interests	1	14	13	25	53	16	10
Basic earnings per share (in €)	0.15	1.79	1.71	2.37	6.01	2.28	3.66
of which from continuing operations	(0.41)	1.40	1.72	2.64	5.34	1.61	1.60
Diluted earnings per share (in €)	0.15	1.78	1.70	2.36	5.99	2.26	3.64
of which from continuing operations	(0.41)	1.40	1.71	2.63	5.33	1.60	1.59

Restated underlying figures	2015 [1]		2017
(in € m)	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2
Sales	10,496	2,490	2,486	2,483	2,586	10,045	2,755	2,762
of which revenues from non-core activities	422	111	97	112	155	476	181	155
of which net sales	10,074	2,378	2,389	2,370	2,431	9,569	2,574	2,607
Cost of goods sold	(7,595)	(1,760)	(1,746)	(1,734)	(1,891)	(7,129)	(1,983)	(1,939)
Gross margin	2,901	730	741	749	695	2,915	772	823
Commercial & administrative costs	(1,366)	(318)	(331)	(319)	(343)	(1,313)	(343)	(359)
Research & innovation costs	(297)	(72)	(70)	(67)	(74)	(282)	(71)	(70)
Other operating gains & losses	5	(15)	24	6	(1)	14	4	55
Earnings from associates & joint ventures	43	12	20	18	19	69	17	20
EBITDA	1,938	499	550	546	480	2,075	547	637
EBITDA margin	19%	21%	23%	23%	20%	22%	21%	24%
Depreciation, amortization & impairments	(652)	(162)	(166)	(160)	(184)	(672)	(167)	(168)
EBIT	1,286	337	384	386	296	1,403	379	469
EBIT margin	13%	14%	16%	16%	12%	15%	15%	18%
Net cost of borrowings	(209)	(62)	(57)	(55)	(50)	(224)	(54)	(42)
Coupons on perpetual hybrid bonds	(112)	(28)	(28)	(28)	(28)	(111)	(28)	(28)
Interests and realized foreign exchange
losses on RusVinyl (joint venture)	(27)	(8)	(5)	(9)	(4)	(26)	(8)	(4)
Cost of discounting provisions	(91)	(26)	(27)	(24)	(26)	(103)	(22)	(21)
Profit for the period before taxes	847	213	268	270	188	939	268	373
Income taxes	(281)	(68)	(81)	(72)	(50)	(272)	(68)	(107)
Tax rate ytd	34%					30%		29%
Profit for the period from continuing	566	145	187	198	138	667	200	266
operations
of which attributable to Solvay share	526	137	173	186	126	622	188	254
of which attributable to non controlling interests	39	8	14	12	12	45	12	12
Profit for the period from discontinued	267	57	53	64	66	240	72	55
operations
Profit for the period	833	202	240	261	204	907	272	321
of which attributable to Solvay share	768	192	223	247	183	846	256	309
of which attributable to non-controlling interests	65	10	16	14	21	61	16	12
Basic earnings per share (in €)	7.40	1.85	2.16	2.40	1.77	8.19	2.48	2.99
of which from continuing operations	5.07	1.32	1.67	1.80	1.22	6.02	1.82	2.46
Diluted earnings per share (in €)	7.35	1.85	2.16	2.39	1.76	8.17	2.46	2.97
of which from continuing operations	5.04	1.32	1.67	1.79	1.22	6.01	1.81	2.44
Capex	(1,160)	(218)	(218)	(242)	(302)	(981)	(185)	(177)
of which from continuing operations	(996)	(191)	(193)	(202)	(252)	(839)	(161)	(159)
Cash conversion	49%	62%	65%	63%	47%	60%	70%	75%
Free cash flow	492	9	174	280	412	876	164	92
of which from continuing operations	309	(8)	124	219	323	658	168	83

[1] Pro forma figures, as if the acquisition of Cytec had taken place on January 1, 2015.

Restated underlying figures	2015 [1]				2017
(in € m)	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2
Net sales	10,074	2,378	2,389	2,370	2,431	9,569	2,574	2,607
Advanced Materials	4,503	1,082	1,082	1,072	1,076	4,313	1,126	1,144
Specialty Polymers	1,901	469	475	497	481	1,922	513	527
Composite Materials	1,169	282	277	253	262	1,073	273	283
Special Chem	912	218	214	211	218	862	225	219
Silica	521	113	115	112	114	455	115	114
Advanced Formulations	2,885	662	650	648	708	2,668	741	757
Novecare	1,895	421	400	403	438	1,663	486	496
Technology Solutions	631	158	165	162	170	656	162	165
Aroma Performance	360	82	85	83	100	350	93	96
Performance Chemicals	2,675	630	657	649	645	2,581	703	699
Soda Ash & Derivatives	1,554	374	397	398	392	1,561	415	412
Peroxides	558	137	135	134	136	542	152	151
Coatis	398	82	85	87	93	346	101	103
Functional Polymers	165	36	40	30	25	131	36	34
Corporate & Business Services	11	4	1	1	1	7	3	7
Energy Services	11	3	-	-	-	4	-	-
Other Corporate & Business Services	-	1	1	1	1	3	3	7
EBITDA	1,938	499	550	546	480	2,075	547	637
Advanced Materials	1,079	267	293	292	259	1,110	292	356
Advanced Formulations	522	122	124	114	124	484	127	130
Performance Chemicals	612	169	195	185	170	718	193	208
Corporate & Business Services	(275)	(59)	(62)	(45)	(72)	(237)	(66)	(57)
EBITDA margin	19%	21%	23%	23%	20%	22%	21%	24%
Advanced Materials	24%	25%	27%	27%	24%	26%	26%	31%
Advanced Formulations	18%	18%	19%	18%	18%	18%	17%	17%
Performance Chemicals	23%	27%	30%	29%	26%	28%	27%	30%
EBIT	1,286	337	384	386	296	1,403	379	469
Advanced Materials	798	199	222	227	180	829	222	285
Advanced Formulations	378	84	85	78	79	327	91	95
Performance Chemicals	445	128	154	142	126	549	147	162
Corporate & Business Services	(335)	(75)	(77)	(60)	(89)	(301)	(81)	(74)
EBIT margin	13%	14%	16%	16%	12%	15%	15%	18%
Advanced Materials	18%	18%	21%	21%	17%	19%	20%	25%
Advanced Formulations	13%	13%	13%	12%	11%	12%	12%	13%
Performance Chemicals	17%	20%	23%	22%	20%	21%	21%	23%
Capex (continuing operations)	(996)	(191)	(193)	(202)	(252)	(839)	(161)	(159)
Advanced Materials	(415)					(435)
Advanced Formulations	(225)					(134)
Performance Chemicals	(252)					(191)
Corporate & Business Services	(104)					(79)
Cash conversion	49%	62%	65%	63%	47%	60%	70%	75%
Advanced Materials	62%					61%
Advanced Formulations	57%					72%
Performance Chemicals	59%					73%

[1] Pro forma figures, as if the acquisition of Cytec had taken place on January 1, 2015.

[1] Restatement FY 2015 pro forma	Underlying
	As	Restate -
(in € m)	published	ment	Restated
	g	h	i
	= a+d	= b+e	= g+h = c+f
Sales	11,882	(1,387)	10,496
of which revenues from non -core activities	467	(46)	422
of which net sales	11,415	(1,341)	10,074
Cost of goods sold	(8,751)	1,156	(7,595)
Gross margin	3,131	(230)	2,901
Commercial & administrative costs	(1,459)	93	(1,366)
Research & innovation costs	(318)	22	(297)
Other operating gains & losses	1	4	5
Earnings from associates & joint ventures	44	-	43
Result from portfolio management & reassessments	-	-	-
Result from legacy remediation & major litigations	-	-	-
EBITDA	2,125	(187)	1,938
Depreciation, amortization & impairments	(727)	75	(652)
EBIT	1,398	(112)	1,286
Net cost of borrowings	(210)	1	(209)
Coupons on perpetual hybrid bonds	(112)	-	(112)
Interests and realized foreign exchange losses on RusVinyl (joint venture)	(27)	-	(27)
Cost of discounting provisions	(92)	1	(91)
Result from available -for -sale financial assets	-	(1)	(1)
Profit for the period before taxes	957	(110)	847
Income taxes	(300)	19	(281)
Profit for the period from continuing operations	657	(92)	566
of which attributable to Solvay share	618	(92)	526
of which attributable to non -controlling interests	39	-	39
Profit for the period from discontinued operations	175	92	267
Profit for the period	833	-	833
of which attributable to Solvay share	768	-	768
of which attributable to non -controlling interests	65	-	65
Capex	(1,160)	-	(1,160)
of which from continuing operations	(1,057)	61	(996)
Free cash flow	492	-	492
of which from continuing operations	394	(85)	309

[1] Pro forma figures, as if the acquisition of Cytec had taken place on January 1, 2015.

Restatement Q1 2016	IFRS			Adjustments			Underlying
		As Restate			Restate		As	Restate
(in € m)	published	ment	Restated	As published	ment	Restated	published	ment	Restated
	a	b	c = a+b	d	e	f = d+e	g = a+d	h = b+e	i = g+h = c+f
Sales	2,827	(338)	2,490	-	-	-	2,827	(338)	2,490
of which revenues from non-core activities	121	(10)	111	-	-	-	121	(10)	111
of which net sales	2,706	(328)	2,378	-	-	-	2,706	(328)	2,378
Cost of goods sold	(2,112)	270	(1,842)	82	-	82	(2,030)	270	(1,760)
Gross margin	715	(67)	648	82	-	82	797	(67)	730
Commercial & administrative costs	(357)	24	(333)	14	-	14	(342)	24	(318)
Research & innovation costs	(77)	5	(72)	-	-	-	(77)	5	(72)
Other operating gains & losses	(80)	8	(71)	60	(4)	56	(19)	4	(15)
Earnings from associates & joint ventures	16	-	16	(4)	-	(4)	12	-	12
Result from portfolio management & reassessments	(135)	1	(134)	135	(1)	134	-	-	-
Result from legacy remediation & major litigations	(11)	1	(11)	11	(1)	11	-	-	-
EBITDA	442	(50)	392	109	(2)	107	551	(52)	499
Depreciation, amortization & impairments	(370)	22	(348)	190	(4)	186	(180)	17	(162)
EBIT	72	(29)	43	299	(6)	293	371	(34)	337
Net cost of borrowings	(62)	-	(62)	-	-	-	(62)	-	(62)
Coupons on perpetual hybrid bonds	-	-	-	(28)	-	28	(28)		(28)
Interests and realized foreign exchange losses on RusVinyl (joint venture)	-	-	-	(8)	-	8	(8)		(8)
Cost of discounting provisions	(31)	1	(30)	4	-	4	(27)	1	(26)
Result from available-for-sale financial assets	-	-	-	-	-	-	-	-	-
Profit for the period before taxes	(21)	(28)	(49)	268	(6)	262	247	(34)	213
Income taxes	7	3	9	(80)	2	(77)	(73)	5	(68)
Profit for the period from continuing operations	(14)	(25)	(39)	188	(4)	184	174	(29)	145
of which attributable to Solvay share	(17)	(25)	(42)	183	(4)	179	166	(29)	137
of which attributable to non-controlling interests	3	-	3	5	-	5	8	-	8
Profit for the period from discontinued operations	31	25	56	(3)	4	1	28	29	57
Profit for the period	17	-	17	185	-	185	202	-	202
of which attributable to Solvay share	15	-	15	177	-	177	192	-	192
of which attributable to non-controlling interests	1	-	1	9	-	9	10	-	10
Capex	(218)	-	(218)				(218)	-	(218)
of which from continuing operations	(205)	14	(191)				(205)	14	(191)
Free cash flow	9	-	9				9	-	9
of which from continuing operations	(13)	5	(8)				(13)	5	(8)

Restatement Q2 2016	IFRS			Adjustments			Underlying
	As	Restate		As	Restate		As	Restate
(in € m)	published	ment	Restated	published	ment	Restated	published	ment	Restated
	a	b	c = a+b	d	e	f = d+e	g = a+d	h = b+e	i = g+h = c+f
Sales	2,820	(334)	2,486	-	-	-	2,820	(334)	2,486
of which revenues from non-core activities	106	(9)	97	-	-	-	106	(9)	97
of which net sales	2,714	(324)	2,389	-	-	-	2,714	(324)	2,389
Cost of goods sold	(2,016)	270	(1,745)	-	-	-	(2,016)	270	(1,746)
Gross margin	804	(63)	741	-	-	-	804	(63)	741
Commercial & administrative costs	(370)	26	(344)	13	-	13	(357)	26	(331)
Research & innovation costs	(76)	6	(70)	1	-	1	(75)	6	(70)
Other operating gains & losses	(32)	6	(26)	55	(4)	51	23	1	24
Earnings from associates & joint ventures	26	-	26	(5)	-	(5)	20	-	20
Result from portfolio management & reassessments	(7)	2	(5)	7	(2)	5	-	-	-
Result from legacy remediation & major litigations	(15)	1	(14)	15	(1)	14	-	-	-
EBITDA	588	(45)	543	11	(4)	7	599	(49)	550
Depreciation, amortization & impairments	(258)	22	(236)	74	(3)	70	(184)	18	(166)
EBIT	330	(23)	307	84	(7)	77	415	(31)	384
Net cost of borrowings	(57)	-	(57)	-	-	-	(57)	-	(57)
Coupons on perpetual hybrid bonds	-	-	-	(28)	-	28	(28)		(28)
Interests and realized foreign exchange losses on RusVinyl (joint venture)	-	-	-	(5)	-	5	(5)		(5)
Cost of discounting provisions	(28)	1	(27)	-	-	-	(28)	1	(27)
Result from available-for-sale financial assets	1	-	1	(1)	-	(1)	-	-	-
Profit for the period before taxes	247	(22)	224	51	(7)	43	298	(30)	268
Income taxes	(68)	4	(65)	(18)	2	(17)	(87)	6	(81)
Profit for the period from continuing operations	178	(19)	160	32	(5)	27	211	(24)	187
of which attributable to Solvay share	164	(19)	145	33	(5)	28	197	(24)	173
of which attributable to non-controlling interests	15	-	15	(1)	-	(1)	14	-	14
Profit for the period from discontinued operations	20	19	39	9	5	14	29	24	53
Profit for the period	198	-	198	41	-	41	240	-	240
of which attributable to Solvay share	185	-	185	39	-	39	223	-	223
of which attributable to non-controlling interests	14	-	14	2	-	2	16	-	16
Capex	(218)	-	(218)				(218)	-	(218)
of which from continuing operations	(208)	16	(193)				(208)	16	(193)
Free cash flow	174	-	174				174	-	174
of which from continuing operations	136	(12)	124				136	(12)	124

Restatement Q3 2016	IFRS			Adjustments			Underlying
	As	Restate		As	Restate		As	Restate
(in € m)	published	ment	Restated	published	ment	Restated	published	ment	Restated
	a	b	c = a+b	d	e	f = d+e	g = a+d	h = b+e	i = g+h = c+f
Sales	2,823	(341)	2,483	-	-	-	2,823	(341)	2,483
of which revenues from non-core activities	126	(14)	112	-	-	-	126	(14)	112
of which net sales	2,697	(327)	2,370	-	-	-	2,697	(327)	2,370
Cost of goods sold	(2,008)	274	(1,734)	1	-	1	(2,008)	274	(1,734)
Gross margin	815	(67)	748	1	-	1	816	(67)	749
Commercial & administrative costs	(356)	24	(332)	13	-	13	(343)	24	(319)
Research & innovation costs	(72)	5	(68)	1	-	1	(72)	5	(67)
Other operating gains & losses	(52)	5	(48)	58	(4)	53	5	1	6
Earnings from associates & joint ventures	16	-	16	2	-	2	18	-	18
Result from portfolio management & reassessments	(18)	1	(17)	18	(1)	17	-	-	-
Result from legacy remediation & major litigations	(10)	-	(10)	10	-	10	-	-	-
EBITDA	576	(60)	516	31	(1)	30	607	(60)	546
Depreciation, amortization & impairments	(253)	27	(226)	71	(4)	66	(183)	23	(160)
EBIT	322	(33)	290	102	(5)	96	424	(38)	386
Net cost of borrowings	(56)	1	(55)	-	-	-	(56)	1	(55)
Coupons on perpetual hybrid bonds	-	-	-	(28)	-	28	(28)		(28)
Interests and realized foreign exchange losses on RusVinyl (joint venture)	-	-	-	(9)	-	9	(9)		(9)
Cost of discounting provisions	(27)	1	(27)	2	-	2	(25)	1	(24)
Result from available-for-sale financial assets	2	-	2	(2)	-	(2)	-	-	-
Profit for the period before taxes	241	(31)	210	65	(5)	60	306	(36)	270
Income taxes	(24)	3	(22)	(52)	1	(51)	(76)	4	(72)
Profit for the period from continuing operations	217	(29)	188	13	(4)	9	230	(32)	198
of which attributable to Solvay share	206	(29)	177	12	(4)	9	218	(32)	186
of which attributable to non-controlling interests	11	-	11	1	-	1	12	-	12
Profit for the period from discontinued operations	(28)	29	1	59	4	63	32	32	64
Profit for the period	189	-	189	72	-	72	261	-	261
of which attributable to Solvay share	176	-	176	71	-	71	247	-	247
of which attributable to non-controlling interests	13	-	13	1	-	1	14	-	14
Capex	(242)	-	(242)				(242)	-	(242)
of which from continuing operations	(228)	26	(202)				(228)	26	(202)
Free cash flow	280	-	280				280	-	280
of which from continuing operations	251	(32)	219				251	(32)	219

Restatement Q4 2016	IFRS			Adjustments			Underlying
	As	Restate		As	Restate		As	Restate
(in € m)	published	ment	Restated	published	ment	Restated	published	ment	Restated
	a	b	c = a+b	d	e	f = d+e	g = a+d	h = b+e	i = g+h = c+f
Sales	2,933	(347)	2,586	-	-	-	2,933	(347)	2,586
of which revenues from non-core activities	166	(10)	155	-	-	-	166	(10)	155
of which net sales	2,767	(336)	2,431	-	-	-	2,767	(336)	2,431
Cost of goods sold	(2,177)	286	(1,892)	1	-	1	(2,176)	286	(1,891)
Gross margin	755	(61)	694	1	-	1	756	(61)	695
Commercial & administrative costs	(382)	29	(354)	11	-	11	(372)	29	(343)
Research & innovation costs	(80)	6	(74)	1	-	1	(79)	6	(74)
Other operating gains & losses	(58)	4	(54)	58	(4)	54	-	(1)	(1)
Earnings from associates & joint ventures	28	-	28	(9)	-	(9)	19	-	19
Result from portfolio management & reassessments	(5)	4	(1)	5	(4)	1	-	-	-
Result from legacy remediation & major litigations	(20)	-	(20)	20	-	20	-	-	-
EBITDA	526	(43)	483	2	(4)	(2)	527	(47)	480
Depreciation, amortization & impairments	(288)	24	(265)	85	(4)	81	(203)	19	(184)
EBIT	238	(20)	218	86	(8)	78	324	(28)	296
Net cost of borrowings	(51)	-	(50)	-	-	-	(51)	-	(50)
Coupons on perpetual hybrid bonds	-	-	-	(28)	-	28	(28)		(28)
Interests and realized foreign exchange losses on RusVinyl (joint venture)	-	-	-	(4)	-	4	(4)		(4)
Cost of discounting provisions	(32)	1	(31)	5	-	5	(27)	1	(26)
Result from available-for-sale financial assets	2	-	2	(2)	-	(2)	-	-	-
Profit for the period before taxes	156	(19)	138	58	(8)	50	214	(27)	188
Income taxes	142	3	146	(197)	1	(195)	(54)	4	(50)
Profit for the period from continuing operations	299	(15)	284	(139)	(7)	(146)	160	(22)	138
of which attributable to Solvay share	288	(15)	272	(139)	(7)	(146)	148	(22)	126
of which attributable to non-controlling interests	11	-	11	-	-	-	12	-	12
Profit for the period from discontinued operations	(29)	15	(14)	74	7	80	44	22	66
Profit for the period	270	-	270	(66)	-	(66)	204	-	204
of which attributable to Solvay share	245	-	245	(62)	-	(62)	183	-	183
of which attributable to non-controlling interests	25	-	25	(4)	-	(4)	21	-	21
Capex	(302)	-	(302)				(302)	-	(302)
of which from continuing operations	(287)	35	(252)				(287)	35	(252)
Free cash flow	412	-	412				412	-	412
of which from continuing operations	362	(39)	323				362	(39)	323

Restatement FY 2016	IFRS				Adjustments		Underlying
	As	Restate		As	Restate		As	Restate
(in € m)	published	ment	Restated	published	ment	Restated	published	ment	Restated
	a	b	c	d	e	f	g	h	i
Sales	11,403	(1,359)	= a+b 10,045	-	-	= d+e -	= a+d 11,403	= b+e (1,359)	= g+h = c+f 10,045
of which revenues from non-core activities	519	(43)	476	-	-	-	519	(43)	476
of which net sales	10,884	(1,315)	9,569	-	-	-	10,884	(1,315)	9,569
Cost of goods sold	(8,314)	1,100	(7,213)	84	-	84	(8,230)	1,100	(7,129)
Gross margin	3,090	(258)	2,831	84	-	84	3,173	(258)	2,915
Commercial & administrative costs	(1,465)	102	(1,363)	50	-	50	(1,416)	102	(1,313)
Research & innovation costs	(305)	21	(284)	3	-	3	(302)	21	(282)
Other operating gains & losses	(222)	22	(200)	231	(17)	214	9	5	14
Earnings from associates & joint ventures	85	-	85	(16)	-	(16)	69	-	69
Result from portfolio management & reassessments	(164)	7	(157)	164	(7)	157	-	-	-
Result from legacy remediation & major litigations	(56)	2	(54)	56	(2)	54	-	-	-
EBITDA	2,131	(199)	1,932	152	(9)	143	2,284	(208)	2,075
Depreciation, amortization & impairments	(1,169)	95	(1,074)	419	(17)	402	(750)	78	(672)
EBIT	962	(104)	858	571	(26)	545	1,534	(130)	1,403
Net cost of borrowings	(226)	2	(224)	-	-	-	(226)	2	(224)
Coupons on perpetual hybrid bonds	-	-	-	(111)	-	(111)	(111)		(111)
Interests and realized foreign exchange losses on RusVinyl (joint venture)	-	-	-	(26)	-	(26)	(26)		(26)
Cost of discounting provisions	(118)	3	(115)	12	-	12	(106)	3	(103)
Result from available-for-sale financial assets	5	-	5	(5)	-	(5)	-	-	-
Profit for the period before taxes	624	(100)	524	441	(26)	415	1,065	(126)	939
Income taxes	56	12	68	(347)	7	(340)	(291)	19	(272)
Profit for the period from continuing operations	680	(88)	592	94	(19)	75	774	(107)	667
of which attributable to Solvay share	640	(88)	552	89	(19)	70	729	(107)	622
of which attributable to non-controlling interests	40	-	40	5	-	5	45	-	45
Profit for the period from discontinued operations	(6)	88	82	138	19	158	133	107	240
Profit for the period	674	-	674	233	-	233	907	-	907
of which attributable to Solvay share	621	-	621	225	-	225	846	-	846
of which attributable to non-controlling interests	53	-	53	7	-	7	61	-	61
Capex	(981)	-	(981)				(981)	-	(981)
of which from continuing operations	(929)	90	(839)				(929)	90	(839)
Free cash flow	876	-	876				876	-	876
of which from continuing operations	736	(78)	658				736	(78)	658

Restatement Q1 2017	IFRS			Adjustments			Underlying
	As	Restate		As	Restate		As	Restate
(in € m)	published	ment	Restated	published	ment	Restated	published	ment	Restated
	a	b	c = a+b	d	e	f = d+e	g = a+d	h = b+e	i = g+h = c+f
Sales	3,159	(405)	2,755	-	-	-	3,159	(405)	2,755
of which revenues from non-core activities	192	(11)	181	-	-	-	192	(11)	181
of which net sales	2,968	(394)	2,574	-	-	-	2,968	(394)	2,574
Cost of goods sold	(2,305)	322	(1,983)	-	-	-	(2,304)	322	(1,983)
Gross margin	855	(83)	772	-	-	-	855	(83)	772
Commercial & administrative costs	(379)	26	(353)	10	-	10	(368)	26	(343)
Research & innovation costs	(76)	4	(72)	1	-	1	(75)	4	(71)
Other operating gains & losses	(58)	7	(51)	59	(4)	54	1	3	4
Earnings from associates & joint ventures	22	-	22	(5)	-	(5)	17	-	17
Result from portfolio management & reassessments	(16)	3	(13)	16	(3)	13	-	-	-
Result from legacy remediation & major litigations	(11)	-	(10)	11	-	10	-	-	-
EBITDA	590	(66)	524	26	(3)	23	616	(69)	547
Depreciation, amortization & impairments	(253)	23	(229)	66	(4)	62	(186)	19	(167)
EBIT	337	(43)	294	92	(7)	85	429	(50)	379
Net cost of borrowings	(54)	-	(54)	-	-	-	(54)	-	(54)
Coupons on perpetual hybrid bonds	-	-	-	(28)	-	28	(28)		(28)
Interests and realized foreign exchange losses on RusVinyl (joint venture)	-	-	-	(8)	-	8	(8)		(8)
Cost of discounting provisions	(27)	-	(26)	5	-	5	(22)	-	(22)
Result from available-for-sale financial assets	-	-	-	-	-	-	-	-	-
Profit for the period before taxes	256	(42)	214	61	(7)	54	318	(50)	268
Income taxes	(42)	5	(36)	(34)	1	(32)	(75)	7	(68)
Profit for the period from continuing operations	215	(37)	178	28	(6)	22	242	(43)	200
of which attributable to Solvay share	203	(37)	166	28	(6)	22	231	(43)	188
of which attributable to non-controlling interests	12	-	12	-	-	-	12	-	12
Profit for the period from discontinued operations	36	37	73	(7)	6	(1)	30	43	72
Profit for the period	251	-	251	21	-	21	272	-	272
of which attributable to Solvay share	235	-	235	21	-	21	256	-	256
of which attributable to non-controlling interests	16	-	16	-	-	-	16	-	16
Capex	(185)	-	(185)				(185)	-	(185)
of which from continuing operations	(177)	15	(161)				(177)	15	(161)
Free cash flow	164	-	164				164	-	164
of which from continuing operations	160	8	168				160	8	168

Restatement Q2 2017	IFRS			Adjustments			Underlying
	As	Restate		As	Restate		As	Restate
(in € m)	published	ment	Restated	published	ment	Restated	published	ment	Restated
	a	b	c = a+b	d	e	f = d+e	g = a+d	h = b+e	i = g+h = c+f
Sales	3,188	(426)	2,762	-	-	-	3,188	(426)	2,762
of which revenues from non-core activities	166	(11)	155	-	-	-	166	(11)	155
of which net sales	3,022	(415)	2,607	-	-	-	3,022	(415)	2,607
Cost of goods sold	(2,284)	344	(1,939)	-	-	-	(2,283)	344	(1,939)
Gross margin	904	(81)	823	-	-	-	905	(81)	823
Commercial & administrative costs	(395)	25	(370)	11	-	11	(384)	25	(359)
Research & innovation costs	(77)	6	(71)	1	-	1	(76)	6	(70)
Other operating gains & losses	(2)	5	3	57	(4)	52	55	-	55
Earnings from associates & joint ventures	-	-	-	20	-	20	20	-	20
Result from portfolio management & reassessments	(67)	15	(52)	67	(15)	52	-	-	-
Result from legacy remediation & major litigations	(24)	-	(24)	24	-	24	-	-	-
EBITDA	615	(65)	550	90	(3)	87	705	(68)	637
Depreciation, amortization & impairments	(276)	34	(241)	90	(16)	73	(186)	18	(168)
EBIT	339	(31)	309	180	(20)	160	519	(50)	469
Net cost of borrowings	(49)	-	(48)	6	-	6	(42)	-	(42)
Coupons on perpetual hybrid bonds	-	-	-	(28)	-	28	(28)		(28)
Interests and realized foreign exchange losses on RusVinyl (joint venture)	-	-	-	(4)	-	4	(4)		(4)
Cost of discounting provisions	(22)	-	(21)	-	-	-	(22)	-	(21)
Result from available-for-sale financial assets	-	-	-	-	-	-	-	-	-
Profit for the period before taxes	269	(30)	239	154	(20)	135	423	(50)	373
Income taxes	(64)	1	(63)	(46)	2	(44)	(110)	3	(107)
Profit for the period from continuing operations	205	(29)	176	108	(18)	90	313	(47)	266
of which attributable to Solvay share	195	(29)	165	107	(18)	89	301	(47)	254
of which attributable to non-controlling interests	10	-	10	2	-	2	12	-	12
Profit for the period from discontinued operations	184	29	213	(176)	18	(158)	7	47	55
Profit for the period	389	-	389	(68)	-	(68)	321	-	321
of which attributable to Solvay share	378	-	378	(70)	-	(70)	309	-	309
of which attributable to non-controlling interests	10	-	10	2	-	2	12	-	12
Capex	(177)	-	(177)				(177)	-	(177)
of which from continuing operations	(174)	15	(159)				(174)	15	(159)
Free cash flow	92	-	92				92	-	92
of which from continuing operations	85	(2)	83				85	(2)	83

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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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