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LANXESS AG — Interim / Quarterly Report 2016
Nov 10, 2016
259_10-q_2016-11-10_cf642b49-5795-4611-aa23-1f397140552f.pdf
Interim / Quarterly Report
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QUARTERLY STATEMENT
as of September 30, 2016
LANXESS Group Key Data
| $\epsilon$ million | Q3 2015 | Q3 2016 | Change % | 9M 2015 | 9M 2016 | Change % |
|---|---|---|---|---|---|---|
| Sales | 1,953 | 1,921 | (1.6) | 6,096 | 5,784 | (5.1) |
| Gross profit | 455 | 446 | (2.0) | 1.383 | 1,384 | 0.1 |
| Gross profit margin | 23.3% | 23.2% | 22.7% | 23.9% | ||
| EBITDA pre exceptionals 1) | 235 | 257 | 9.4 | 734 | 812 | 10.6 |
| EBITDA margin pre exceptionals 1) | 12.0% | 13.4% | 12.0% | 14.0% | ||
| EBITDA 1) | 218 | 241 | 10.6 | 692 | 783 | 13.2 |
| Operating result (EBIT) pre exceptionals 1) | 121 | 138 | 14.0 | 397 | 458 | 15.4 |
| Operating result (EBIT) 1) | 104 | 122 | 17.3 | 344 | 429 | 24.7 |
| EBIT margin 1) | 5.3% | 6.4% | 5.6% | 7.4% | ||
| Net income | 41 | 62 | 51.2 | 150 | 190 | 26.7 |
| Earnings per share $(\epsilon)$ | 0.45 | 0.68 | 51.2 | 1.64 | 2.08 | 26.7 |
| Earnings per share pre exceptionals $(\epsilon)^2$ | 0.57 | 0.78 | 36.8 | 1.97 | 2.28 | 15.7 |
| Cash flow from operating activities | 190 | 304 | 60.0 | 342 | 532 | 55.6 |
| Depreciation and amortization | 114 | 119 | 4.4 | 348 | 354 | 1.7 |
| Cash outflows for capital expenditures | 100 | 106 | 6.0 | 229 | 228 | (0.4) |
| Total assets | 7,219 6) | 8,242 | 14.2 | |||
| Equity (including non-controlling interests) | 2,3236) | 3,453 | 48.6 | |||
| Equity ratio 3) | 32.2% 6) | 41.9% | ||||
| Net financial liabilities 4) | $1,211$ 6) | 788 | (34.9) | |||
| Net financial liabilities after deduction | ||||||
| of time deposits and securities available for sale 5) | $1.211^{6}$ | 203 | (83.2) | |||
| Employees (as of September 30) | 16,2256 | 16,700 | 2.9 | |||
1) EBIT: earnings before interest and income taxes
EBIT pre exceptionals: EBIT disregarding exceptional items
EBIT margin: ratio of EBIT to sales
EBITDA: EBIT plus depreciation and impairments of property, plant and equipment as well as amortization and impairments of intangible assets,
less reversals of impairment charges on property, plant, equipment and intangible assets
EBITDA pre exceptionals: EBITDA disregarding exceptional items
EBITDA margin pre exceptionals: the ratio of EBITDA pre exceptionals to sales;
please see "Notes on EBIT and EBITDA (pre exceptionals)" for details.
2) Earnings per share pre exceptionals: earnings per share disregarding exceptional items and the associated tax effects;
please see "Net income/Earnings per share/Earnings per share pre exceptionals" for details.
3) Equity ratio: equity as a percentage of total assets
4) Net financial liabilities: sum of current and non-current financial liabilities (adjusted for liabilities for accrued interest) less cash,
cash equivalents and near-cash assets; please see "Statement of financial position and financial condition" for details.
5) Please see "Statement of financial position and financial condition" for details of the deducted f
6) Previous year as of December 31, 2015
Contents
| LANXESS Group Key Data | ||
|---|---|---|
$\mathbf{1}$ Key Issues
- $\overline{2}$ Quarterly Statement as of September 30, 2016
- $\overline{\mathbf{2}}$ Strategy and change to the Group portfolio
- $\overline{\mathbf{2}}$ Business performance
- 5 Business development by region
- 6 Segment information
- 9 Notes on EBIT and EBITDA (pre exceptionals)
- 10 Statement of financial position and financial condition
- 11 Outlook
$12$ Financial Data as of September 30, 2016
- LANXESS Group Statement of Financial Position $12$
- 13 LANXESS Group Income Statement
- $14$ LANXESS Group Statement of Comprehensive Income
- LANXESS Group Statement of Changes in Equity 14
- 15 LANXESS Group Statement of Cash Flows
- $16\,$ Business Unit Key Data
- $17$ Financial Calendar/Contacts/Masthead
Key Issues
LANXESS plans to acquire Chemtura
LANXESS is planning to acquire U.S. company Chemtura, one of the major global providers of high-quality flame retardant and lubricant additives. With the largest acquisition in its history, LANXESS is building on its own additives portfolio and will become one of the world's major actors in this growing market. In addition to additives, Chemtura's portfolio includes urethanes and organometallics. The products will be integrated into LANXESS's High Performance Materials and Advanced Industrial Intermediates business units.
Both companies have signed an acquisition agreement under the terms of which Chemtura shareholders will receive a cash payment of U.S. \$33.50 per outstanding share. LANXESS will finance the expected purchase price of the transaction – around €1.9 billion – mainly through two corporate bonds and one hybrid bond, as well as from existing liquidity. The transaction is subject to customary closing conditions, including approval by Chemtura's shareholders and the relevant antitrust authorities. Closing is expected in mid-2017.
LANXESS listed in the Dow Jones Sustainability Index World for the sixth time in succession
LANXESS has been included in the Dow Jones Sustainability Index (DJSI) World for the sixth time in succession since September 19, 2016. The composition of this sustainability index, which is recognized throughout the world, is determined once a year on the basis of financially relevant environmental, social and governance factors. The index follows the "best-in-class" principle. The DJSI World lists the top 10% of companies assessed in each sector. This year, special recognition was given to LANXESS's performance in the management of innovation processes and its climate strategy, among other things.
Acquisition of Chemours Clean and Disinfect business closed
On August 31, 2016, LANXESS closed the acquisition of the Clean and Disinfect specialties business of U.S. company Chemours. The new business has been integrated into LANXESS's Material Protection Products business unit, expanding its active ingredient portfolio and extending the veterinary disinfection value chain through to the end market.
Two corporate bonds of €500 million each successfully placed
In October, LANXESS successfully placed two eurobonds on the European capital market for the financing of the planned acquisition of Chemtura. The bonds, each with a volume of €500 million, have terms of five and ten years, respectively, and coupons of 0.25% and 1.0%, respectively. Both eurobonds are listed on the Luxembourg Stock Exchange and will be traded in denominations of €1,000 nominal value.
LANXESS honored by Carbon Disclosure Project
LANXESS is now one of 193 companies worldwide included in the Climate A List of the Carbon Disclosure Project (CDP). An "A" grade is given to companies that particularly distinguish themselves with regard to the transparency and completeness of their reporting and to their actual climate protection activities. LANXESS was not only ranked as a leader in the "Energy & Materials" sector but also as the participating German company which had improved the most compared with the previous year. The company was therefore additionally named "Best Improver Germany."
LANXESS Management Board member Hubert Fink (center) and project lead Stefanie Holz (2nd from right) accepted the "Best Improver Germany" award.
Quarterly Statement as of September 30, 2016
- n Strategic step: LANXESS plans to acquire U.S. company Chemtura
- n LANXESS closes acquisition of Chemours Clean and Disinfect specialties business
- n Persistently challenging competitive situation in the synthetic rubber business
- n Substantial year-on-year increase in volumes across all segments
- n Cost-reducing effects from earlier implementation of measures to improve operational competitiveness
- n EBITDA pre exceptionals increased from €235 million to €257 million in the third quarter
- n Substantial improvement of EBITDA margin pre exceptionals to 13.4% after 12.0% in the prior-year quarter
- n Net income and earnings per share pre exceptionals improve to €62 million and €0.78, respectively, against €41 million and €0.57 in prior-year quarter
- n Guidance for 2016 raised: EBITDA pre exceptionals between €960 million and €1 billion
Strategy and change to the Group portfolio
With the acquisition of U.S. company Chemtura agreed in September, LANXESS took another significant step en route to the "new" LANXESS. Chemtura is one of the world's largest suppliers of high-quality additives. The company is headquartered in Philadelphia, United States, and employs around 2,500 people at 20 locations in 11 countries. Based on the data published by Chemtura in its quarterly financial report on June 30, 2016, the company posted sales of around €1.5 billion in the past 12 months, some 45% of which in North America. Adjusted EBITDA thus came to about €245 million. The enterprise value (including net financial liabilities and pension obligations) is around €2.4 billion. Under the terms of the agreement, Chemtura shareholders will receive U.S. \$33.50 per share in cash for each outstanding share of common stock held. This amounts to an expected purchase price of around €1.9 billion, which LANXESS intends to finance largely by way of two eurobonds of €500 million each, both of which were already successfully placed in October, a planned hybrid bond issue and existing liquidity. The transaction, which is expected to close around mid-2017, is subject to approval by Chemtura's shareholders, required regulatory approvals and certain other customary closing conditions.
Effective August 31, 2016, LANXESS closed the acquisition of the Clean and Disinfect specialties business of U.S.-based chemical company Chemours, representing the first such transaction following LANXESS's successful realignment. The new business has been integrated into the Material Protection Products business unit, not only expanding its active ingredient portfolio but also extending the veterinary disinfection value chain through to the end market. The acquired business has some 170 employees worldwide and three production sites in Memphis and North Kingstown in the United States and Sudbury in the United Kingdom. In 2015, it achieved sales of around €100 million, roughly half of which in North America. The annual EBITDA contribution is around €20 million. Synergy effects are expected to gradually generate a further €10 million by 2020. LANXESS paid the provisional purchase price of around €200 million from existing liquidity. In this connection, LANXESS acquired all shares in Antec International Ltd., Sudbury, United Kingdom; International Dioxcide Inc., North Kingstown, United States; and Chemours Jersey Ltd., St. Helier, Channel Islands.
Please also refer to the Half-Year Financial Report for our description of the ARLANXEO strategic alliance in the synthetic rubber business. In this context, new legal entities were established and existing legal entities were renamed. LANXESS now reports as four segments: Advanced Intermediates, Performance Chemicals, High Performance Materials and ARLANXEO. The prior-year figures are restated accordingly.
Business performance
Sales
Sales of the LANXESS Group in the third quarter of 2016 amounted to €1,921 million, down €32 million, or 1.6%, from the prior-year period. Lower selling prices, which resulted particularly from the pass-through of lower procurement prices for raw materials, diminished sales by 6.8%. This effect was countered by higher volumes (5.1%) and the acquisition of the Chemours Clean and Disinfect business (0.4%). Unfavorable shifts in exchange rates amounted to 0.3%.
Business performance
Effects on Sales
| $\frac{9}{6}$ | Q3 2016 | 9M 2016 |
|---|---|---|
| Price | (6.8) | (7.4) |
| Volume | 5.1 | 2.5 |
| Currency | (0.3) | (0.3) |
| Portfolio | 0.4 | 0.1 |
| (1.6) | (5.1) | |
EBITDA and operating result (EBIT)
EBITDA Pre Exceptionals by Segment
| $\epsilon$ million | Q3 2015 | Q3 2016 | Change % | 9M 2015 | 9M 2016 | Change % |
|---|---|---|---|---|---|---|
| Advanced Intermediates | 76 | 83 | 9.2 | 248 | 260 | 4.8 |
| Performance Chemicals | 86 | 91 | 5.8 | 283 | 303 | 7.1 |
| High Performance Materials | 32 | 42 | 31.3 | 90 | 125 | 38.9 |
| ARLANXEO | 94 | 91 | (3.2) | 307 | 299 | (2.6) |
| Reconciliation | (53) | (50) | 5.7 | (194) | (175) | 9.8 |
| 235 | 257 | 9.4 | 734 | 812 | 10.6 | |
2015 figures restated in line with the changed segment structure
A positive overall earnings performance at Group level in the third quarter was particularly the result of increased volumes and lower production costs attributable to the implementation of measures to improve operational competitiveness. An opposing influence came from the adjustment in selling prices, which exceeded the effect of reduced raw material costs due to the persistently challenging competitive situation in the synthetic rubber business. Despite higher volumes, selling expenses of €192 million matched the prioryear level due to lower freight charges. Research and development expenses were €34 million, compared with €32 million in the prior-year period. General administration expenses declined from €70 million to €67 million. The Group's EBITDA margin pre exceptionals increased from 12.0% to 13.4%.
Depreciation and amortization came to €119 million, which was €5 million, or 4.4%, above the figure for the prior-year quarter. The negative exceptional items of €16 million reported in other operating income and expenses, which fully impacted EBITDA, mainly related to expenses associated with the strategic realignment of the LANXESS Group. In the prior-year quarter, negative exceptional items amounted to €17 million, which fully impacted EBITDA.
Reconciliation of EBITDA Pre Exceptionals to Operating Result (EBIT)
| $\epsilon$ million | Q3 2015 | Q3 2016 | Change % | 9M 2015 | 9M 2016 | Change % |
|---|---|---|---|---|---|---|
| EBITDA pre exceptionals | 235 | 257 | 9.4 | 734 | 812 | 10.6 |
| Depreciation and amortization | (114) | (119) | (4.4) | (348) | (354) | (1.7) |
| Exceptional items in EBITDA | (17 | (16) | 5.9 | (42) | (29) | 31.0 |
| Operating result (EBIT) | 104 | 122 | 17.3 | 344 | 429 | 24.7 |
Financial result
The financial result for the third quarter of 2016 was minus €22 million, compared with minus €36 million for the prior-year period. The net interest position of €16 million was level with the same quarter last year. As in the year-earlier period, companies accounted for using the equity method did not generate an earnings contribution. The improvement in other financial income and expense items to minus €6 million, after minus €20 million in the prior-year quarter, resulted mainly from the reduced exchange loss and the proceeds from the sale of our financial interest in Elemica Inc., Exton, United States.
Income before income taxes
Third-quarter income before income taxes came to €100 million, against €68 million for the prior-year period. The effective tax rate was 40.0%, compared with 39.7% for the prior-year quarter.
Net income/Earnings per share/ Earnings per share pre exceptionals
Net income for the reporting period came to €62 million, compared with €41 million a year ago. Non-controlling interests accounted for a loss of $\epsilon$ 2 million in the third quarter of 2016, compared with €0 million for the prior-year period. The loss accounted for by noncontrolling interests in the third quarter of 2016 resulted almost entirely from Saudi Aramco's interest in ARLANXEO.
Earnings per share were €0.68 in the third quarter, substantially above the previous year's level of €0.45.
In order to better assess and compare our performance over time, we also calculate earnings per share pre exceptionals, which is not defined by International Financial Reporting Standards.
Earnings per share pre exceptionals were $\epsilon$ 0.78 in the third quarter of 2016, compared with €0.57 for the prior-year period. These values were calculated on the basis of net income, taking account of the exceptional items and associated tax effects attributable to the stockholders of LANXESS AG. In the third quarter of 2016, negative exceptional items amounted to €15 million, compared with negative exceptional items of €17 million in the prior-year period.
Reconciliation of Earnings Per Share Pre Exceptionals
| 9M 2015 | 9M 2016 | |
|---|---|---|
| 62 | 150 | 190 |
| 15 | 53 | 28 |
| (5) | (23) | (9) |
| 72 | 180 | 209 |
| 91.522.936 | 91.522.936 | 91.522.936 |
| 0.78 | 1.97 | 2.28 |
| Q3 2015 Q3 2016 |
1) Disregarding exceptional items attributable to non-controlling interests
Business development by region
Sales by Market
| Q3 2015 | Q3 2016 | Change | 9M 2015 | 9M 2016 | Change | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| $∈$ million | $\%$ | $\epsilon$ million | $\%$ | $\frac{0}{0}$ | $\epsilon$ million | $\%$ | $\epsilon$ million | $\%$ | $\%$ | |
| EMEA (excluding Germany) | 558 | 28.6 | 547 | 28.5 | (2.0) | 1.794 | 29.5 | 1.740 | 30.1 | (3.0) |
| Germany | 339 | 17.3 | 317 | 16.5 | (6.5) | 1,062 | 17.4 | 997 | 17.2 | (6.1) |
| North America | 355 | 18.2 | 341 | 17.7 | (3.9) | 1,055 | 17.3 | 1,006 | 17.4 | (4.6) |
| Latin America | 201 | 10.3 | 201 | 10.5 | 0.0 | 635 | 10.4 | 587 | 10.2 | (7.6) |
| Asia-Pacific | 500 | 25.6 | 515 | 26.8 | 3.0 | 1,550 | 25.4 | 1,454 | 25.1 | (6.2) |
| 1,953 | 100.0 | 1,921 | 100.0 | (1.6) | 6,096 | 100.0 | 5,784 | 100.0 | (5.1) | |
Sales of the LANXESS Group in the third quarter of 2016 amounted to €1,921 million, down €32 million, or 1.6%, from €1,953 million in the prior-year period. This figure contained a minor portfolio effect from the acquisition of the Clean and Disinfect specialties business of U.S.-based chemical company Chemours effective August 31, 2016, which primarily impacted the North America region.
Global sales performance was characterized by lower selling prices resulting from an overall decline in procurement prices for key raw materials.
Sales in the EMEA (excluding Germany) region shrank by €11 million, or 2.0%, to €547 million in the third quarter of 2016. Business expansion by the Advanced Intermediates segment partly offset the decline in the other segments.
Sales in Germany in the third quarter of 2016 were down €22 million, or 6.5%, year on year, at €317 million. All segments except Performance Chemicals registered decreasing sales, especially the ARLANXEO segment.
Sales in the North America region decreased by €14 million, or 3.9%, to €341 million in the third quarter of 2016. Adjusted for slight currency effects and for the portfolio effect from the acquisition of the Chemours business, the sales decline was 4.7% and impacted all segments.
Sales in the Latin America region in the third quarter of 2016 were level with the prior-year period, at €201 million. The positive business performance by the High Performance Materials segment compensated for the decline in sales at ARLANXEO and Performance Chemicals.
Sales in the Asia-Pacific region rose by 3.0% in the third quarter of 2016, to €515 million. This development was largely attributable to low-double-digit-percentage sales growth in the Performance Chemicals and High Performance Materials segments.
Segment information
As part of the strategic realignment of LANXESS, Group structures were reorganized. The synthetic rubber business, formerly bundled in the Tire & Specialty Rubbers and High Performance Elastomers business units in the Performance Polymers segment, has been reported as the ARLANXEO segment since the second quarter of 2016, while the High Performance Materials business unit, formerly also assigned to the Performance Polymers segment, is a separate segment. Since that time, LANXESS has been reporting as four segments: Advanced Intermediates, Performance Chemicals, High Performance Materials and ARLANXEO. The prior-year figures are restated accordingly.
Advanced Intermediates
| $∈$ million 440 76 |
Margin $\frac{0}{0}$ 17.3 |
$\epsilon$ million 435 |
Margin $\%$ |
$\%$ (1.1) |
$∈$ million 1,386 |
Margin $\frac{0}{0}$ |
$\epsilon$ million | Margin $\%$ |
$\%$ |
|---|---|---|---|---|---|---|---|---|---|
| 1,341 | (3.2) | ||||||||
| 83 | 19.1 | 9.2 | 248 | 17.9 | 260 | 19.4 | 4.8 | ||
| 76 | 17.3 | 83 | 19.1 | 9.2 | 247 | 17.8 | 260 | 19.4 | 5.3 |
| 52 | 11.8 | 57 | 13.1 | 9.6 | 174 | 12.6 | 184 | 13.7 | 5.7 |
| 52 | 11.8 | 57 | 13.1 | 9.6 | 173 | 12.5 | 184 | 13.7 | 6.4 |
| 22 | 30 | 36.4 | 50 | 61 | 22.0 | ||||
| 24 | 26 | 8.3 | 74 | 76 | 2.7 | ||||
| 3,259 | 3,351 | 2.8 | 3,259 | 3,351 | 2.8 | ||||
1) 2015 figure restated
Our Advanced Intermediates segment recorded sales of €435 million in the third quarter of 2016, which was 1.1% or €5 million below the level of the prior-year quarter. Selling price adjustments, due especially to the pass-through of cost relief from lower procurement prices for raw materials, resulted in a negative price effect of 7.5%. In the Advanced Industrial Intermediates business unit particularly, sales volumes increased on account of good demand in almost all end markets. At segment level, sales volumes were 6.6% higher than in the prior-year quarter. It should be borne in mind that performance in the year-earlier period was impacted by an unscheduled shutdown in the United States. The segment posted higher and stable sales, respectively, in the EMEA (excluding Germany) and Latin America regions. In the other regions, the segment's sales declined year on year.
EBITDA pre exceptionals in the Advanced Intermediates segment amounted to €83 million, €7 million, or 9.2%, above the prior-year level. Reduced production costs, higher volumes and improved capacity utilization had a positive impact on earnings. The cost relief from lower raw material prices stood against the effect of reduced selling prices. Currency effects had a slightly positive impact. The EBITDA margin pre exceptionals increased from 17.3% to 19.1%.
Performance Chemicals
| Q3 2015 | Q3 2016 | Change | 9M 2015 | 9M 2016 | Change | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Margin | Margin | Margin | Margin | |||||||
| $∈$ million | $\frac{0}{0}$ | $\epsilon$ million | $\frac{0}{0}$ | $\%$ | $∈$ million | $\frac{0}{0}$ | $\epsilon$ million | $\%$ | $\%$ | |
| Sales | 524 | 541 | 3.2 | 1,610 | 1,617 | 0.4 | ||||
| EBITDA pre exceptionals | 86 | 16.4 | 91 | 16.8 | 5.8 | 283 | 17.6 | 303 | 18.7 | 7.1 |
| EBITDA | 86 | 16.4 | 91 | 16.8 | 5.8 | 275 | 17.1 | 303 | 18.7 | 10.2 |
| Operating result (EBIT) pre exceptionals | 63 | 12.0 | 68 | 12.6 | 7.9 | 218 | 13.5 | 235 | 14.5 | 7.8 |
| Operating result (EBIT) | 63 | 12.0 | 68 | 12.6 | 7.9 | 210 | 13.0 | 235 | 14.5 | 11.9 |
| Cash outflows for capital expenditures | 33 | 32 | (3.0) | 74 | 70 | (5.4) | ||||
| Depreciation and amortization | 23 | 23 | 0.0 | 65 | 68 | 4.6 | ||||
| Employees as of September 30 | ||||||||||
| (previous year as of Dec. 31) 1) | 5,138 | 5,582 | 8.6 | 5,138 | 5,582 | 8.6 |
Sales in our Performance Chemicals segment rose by 3.2% in the third quarter of 2016, to €541 million. Sales volumes, which increased by 5.0% overall, were above the prior-year level in almost all business units, while selling prices declined by 2.9% and were below the prior-year level in almost all business units. Integration of the Clean and Disinfect specialties business of U.S. chemical company Chemours into the Material Protection Products business unit had a positive effect of 1.5% on sales. While business developed positively in the Germany and Asia-Pacific regions, it contracted in the other regions.
EBITDA pre exceptionals in the Performance Chemicals segment amounted to €91 million, an increase of €5 million, or 5.8%, compared with the prior-year level of €86 million. Earnings were improved by higher volumes and favorable currency effects on our production costs. The positive earnings performance was also supported by lower selling expenses. The cost relief from lower raw material prices stood against the effect of reduced selling prices. The EBITDA margin pre exceptionals increased from 16.4% to 16.8%.
High Performance Materials
| Q3 2015 | Q3 2016 | Change | 9M 2015 | 9M 2016 | Change | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Margin | Margin | Margin | Margin | |||||||
| $∈$ million | $\frac{0}{0}$ | $\epsilon$ million | $\%$ | $\%$ | $∈$ million | $\frac{0}{0}$ | $\epsilon$ million | $\frac{0}{0}$ | $\%$ | |
| Sales | 263 | 257 | (2.3) | 847 | 805 | (5.0) | ||||
| EBITDA pre exceptionals | 32 | 12.2 | 42 | 16.3 | 31.3 | 90 | 10.6 | 125 | 15.5 | 38.9 |
| EBITDA | 32 | 12.2 | 42 | 16.3 | 31.3 | 110 | 13.0 | 125 | 15.5 | 13.6 |
| Operating result (EBIT) pre exceptionals | 21 | 8.0 | 31 | 12.1 | 47.6 | 57 | 6.7 | 92 | 11.4 | 61.4 |
| Operating result (EBIT) | 21 | 8.0 | 31 | 12.1 | 47.6 | 76 | 9.0 | 92 | 11.4 | 21.1 |
| Cash outflows for capital expenditures | 4 | 6 | 50.0 | 15 | 15 | 0.0 | ||||
| Depreciation and amortization | 11 | 0.0 | 34 | 33 | (2.9) | |||||
| Employees as of September 30 (previous year as of Dec. 31) |
1,546 | 1,574 | 1.8 | 1,546 | 1,574 | 1.8 |
2015 figures restated in line with the changed segment structure
Sales in our High Performance Materials segment decreased by 2.3% year on year in the third quarter of 2016, to €257 million. Selling price adjustments resulted in a negative price effect of 8.4%. This was attributable to lower procurement prices for raw materials being passed on to customers. Sales were improved by a 6.5% increase in volumes against the prior-year quarter. In the Latin America and Asia-Pacific regions, sales were positive. However, sales declined in the other regions.
EBITDA pre exceptionals in the High Performance Materials segment rose by a significant €10 million, or 31.3%, to €42 million. Higher volumes in the more profitable product groups and high capacity utilization resulted in positive earnings performance. Lower raw material prices led to an adjustment in selling prices. The EBITDA margin pre exceptionals of 16.3% was well above the figure of 12.2% posted in the prior-year quarter.
ARLANXEO
| Q3 2015 | Q3 2016 | Change | 9M 2015 | 9M 2016 | Change | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Margin | Margin | Margin | Margin | |||||||
| $\epsilon$ million | $\%$ | $\epsilon$ million | $\frac{0}{0}$ | $\%$ | $∈$ million | $\frac{0}{0}$ | $\epsilon$ million | $\frac{0}{0}$ | $\%$ | |
| Sales | 713 | 675 | (5.3) | 2,216 | 1,985 | (10.4) | ||||
| EBITDA pre exceptionals | 94 | 13.2 | 91 | 13.5 | (3.2) | 307 | 13.9 | 299 | 15.1 | (2.6) |
| EBITDA | 92 | 12.9 | 91 | 13.5 | (1.1) | 293 | 13.2 | 299 | 15.1 | 2.0 |
| Operating result (EBIT) pre exceptionals | 42 | 5.9 | 36 | 5.3 | (14.3) | 154 | 6.9 | 134 | 6.8 | (13.0) |
| Operating result (EBIT) | 40 | 5.6 | 36 | 5.3 | (10.0) | 130 | 5.9 | 134 | 6.8 | 3.1 |
| Cash outflows for capital expenditures | 38 | 32 | (15.8) | 81 | 72 | (11.1) | ||||
| Depreciation and amortization | 52 | 55 | 5.8 | 163 | 165 | 1.2 | ||||
| Employees as of September 30 | ||||||||||
| (previous year as of Dec. 31) | 3,491 | 3,473 | (0.5) | 3,491 | 3,473 | (0.5) |
2015 figures restated in line with the changed segment structure
Sales in our ARLANXEO segment declined by 5.3% year on year in the third quarter of 2016, to €675 million. This development was largely influenced by selling price adjustments in both business units due to lower raw material procurement prices and the persistently challenging competitive situation in the synthetic rubber business, which resulted in a negative price effect of 9.0%. Due especially to good demand in Asia-Pacific, volumes increased in both business units and added 3.9% to sales. Sales in all regions were below prior-year levels.
EBITDA pre exceptionals in the ARLANXEO segment declined from €94 million in the prior-year quarter to €91 million. The reduction of selling prices in response to ongoing competitive pressure outweighed the positive impact of cost relief resulting from lower raw material prices. Earnings were improved by higher volumes, an improved portfolio of products sold, reduced production costs and lower idle capacity costs. The EBITDA margin pre exceptionals came in at 13.5% for the third quarter, against 13.2% a year ago.
The segment recorded no exceptional items in the third quarter, compared with negative exceptional items of €2 million in the prior-year period. Please see "Notes on EBIT and EBITDA (pre exceptionals)" for details.
| $\epsilon$ million | Q3 2015 | Q3 2016 | Change % | 9M 2015 | 9M 2016 | Change % |
|---|---|---|---|---|---|---|
| Sales | 13 | 13 | 0.0 | 37 | 36 | (2.7) |
| EBITDA pre exceptionals | (53) | (50) | 5.7 | (194) | (175) | 9.8 |
| EBITDA | (68) | (66) | 2.9 | (233) | (204) | 12.4 |
| Operating result (EBIT) pre exceptionals | (57) | (54) | 5.3 | (206) | (187) | 9.2 |
| Operating result (EBIT) | (72) | (70) | 2.8 | (245) | (216) | 11.8 |
| Cash outflows for capital expenditures | 3 | 6 | 100.0 | 9 | 10 | 11.1 |
| Depreciation and amortization | 4 | 4 | 0.0 | 12 | 12 | 0.0 |
| Employees as of September 30 | ||||||
| (previous year as of Dec. 31) 1) | 2.791 | 2.720 | (2.5) | 2.791 | 2.720 | (2.5) |
1) 2015 figure restated
Reconciliation
EBITDA pre exceptionals for the Reconciliation came to minus €50 million, compared with minus €53 million in the prior-year quarter. The negative exceptional items of €16 million reported in the Reconciliation, which fully impacted EBITDA, resulted primarily from expenditures in connection with the strategic realignment of the LANXESS Group. Negative exceptional items in the prior-year period amounted to €15 million and fully impacted EBITDA. Please see "Notes on EBIT and EBITDA (pre exceptionals)" for details.
Notes on EBIT and EBITDA (pre exceptionals)
In order better to assess our operational business and to steer earning power at Group level and for the individual segments, we additionally calculate the earnings indicators EBITDA, EBITDA and EBIT pre exceptionals, and the EBITDA margin pre exceptionals, none of which are defined by International Financial Reporting Standards. These indicators are viewed as supplementary to the data prepared according to IFRS; they are not a substitute.
Reconciliation of FRIT/FRITDA
| EBIT | EBIT | EBITDA | EBITDA | EBIT | EBIT | EBITDA | EBITDA | |
|---|---|---|---|---|---|---|---|---|
| $E$ million | Q3 2015 | Q3 2016 | Q3 2015 | Q3 2016 | 9M 2015 | 9M 2016 | 9M 2015 | 9M 2016 |
| EBIT/EBITDA pre exceptionals | 121 | 138 | 235 | 257 | 397 | 458 | 734 | 812 |
| Advanced Intermediates | $\circ$ | $\mathbf 0$ | $\Omega$ | $\Omega$ | (1) | $\Omega$ | (1) | 0 |
| Strategic realignment/"Let's LANXESS again" | $\Omega$ | $\Omega$ | $\bigcap$ | $\Omega$ | (3) | $\Omega$ | (3) | $\cap$ |
| Other | 0 | $\Omega$ | $\Omega$ | $\Omega$ | $\mathfrak{D}$ | $\Omega$ | $\mathfrak{D}$ | $\Omega$ |
| Performance Chemicals | $\Omega$ | $\mathbf 0$ | 0 | $\Omega$ | (8) | $\mathbf 0$ | (8) | $\mathbf 0$ |
| Strategic realignment/"Let's LANXESS again" | 0 | $\Omega$ | $\bigcap$ | $\Omega$ | (3) | $\Omega$ | (3) | $\Omega$ |
| Other | 0 | $\Omega$ | $\cap$ | $\Omega$ | (5) | $\Omega$ | (5) | $\Omega$ |
| High Performance Materials | 0 | 0 | $\Omega$ | $\Omega$ | 19 | O | 20 | $\mathbf 0$ |
| Strategic realignment/"Let's LANXESS again" | 0 | $\Omega$ | $\cap$ | $\Omega$ | (1) | $\Omega$ | (1) | $\Omega$ |
| Sale of assets | $\cap$ | $\mathbf{O}$ | $\bigcap$ | $\overline{0}$ | 20 | $\Omega$ | 21 | $\Omega$ |
| ARLANXEO | (2) | 0 | (2) | $\Omega$ | (24) | 0 | (14) | $\mathbf 0$ |
| Strategic realignment/"Let's LANXESS again"1) | (2) | $\Omega$ | (2) | $\Omega$ | (46) | $\Omega$ | (36) | $\Omega$ |
| Sale of assets | $\cup$ | $\Omega$ | $\bigcap$ | $\Omega$ | 22 | $\Omega$ | 22 | $\Omega$ |
| Reconciliation | (15) | (16) | (15) | (16) | (39) | (29) | (39) | (29) |
| Strategic realignment/"Let's LANXESS again" | (13) | (13) | (13) | (13) | (33) | (24) | (33) | (24) |
| Other | (2) | (3) | (2) | (3) | (6) | (5) | (6) | (5) |
| Total exceptional items | (17) | (16) | (17) | (16) | (53) | (29) | (42) | (29) |
| EBIT/EBITDA | 104 | 122 | 218 | 241 | 344 | 429 | 692 | 783 |
1) The exceptional items mainly comprised expenses associated with the termination of EPDM rubber production at the site in Marl. Germany.
EBITDA is calculated from earnings before interest and income taxes (EBIT) by adding back depreciation and impairments of property, plant and equipment as well as amortization and impairments of intangible assets and subtracting reversals of impairment charges on property, plant, equipment and intangible assets.
EBIT pre exceptionals and EBITDA pre exceptionals are EBIT and EBITDA disregarding exceptional items. The latter are effects of an unusual nature or magnitude. They may include write-downs, restructuring expenses, expenses for the design and implementation of IT projects, expenses for portfolio adjustments and reversals of impairment charges. Grants and subsidies from third parties for the acquisition and construction of property, plant and equipment are accounted for as deferred income using the gross method. In
this respect, no adjustments other than for gross depreciation and amortization are made when calculating EBITDA pre exceptionals. EBITDA pre exceptionals is the central indicator that we use to steer the business operations of the Group and the individual segments. Every operational decision or achievement is judged in the short and long term by its sustainable impact on EBITDA pre exceptionals. We use EBITDA pre exceptionals as our key controlling parameter because it facilitates assessment of the company's development over several reporting periods.
The earnings margins are calculated from the ratios of the respective earnings indicators to sales. For example, the EBITDA margin (pre exceptionals) is calculated as the ratio of EBITDA (pre exceptionals) to sales and serves as an indicator of relative earning power at Group level and for the individual segments.
Statement of financial position and financial condition
Structure of the statement of financial position
As of September 30, 2016, the LANXESS Group had total assets of €8,242 million, up €1,023 million, or 14.2%, from €7,219 million on December 31, 2015. The growth in total assets resulted especially from the cash inflow from Saudi Aramco's interest in ARLANXEO and the corresponding increase in equity through a higher share attributable to non-controlling interests. The acquisition of the Chemours Clean and Disinfect specialties business financed with around €200 million from existing liquidity is reflected particularly in an increase in intangible assets. The equity ratio at the end of the third quarter was 41.9%, after 32.2% in the prior year.
Financial condition
Changes in the statement of cash flows
In the first nine months of 2016, there was a net cash inflow of €532 million from operating activities, against €342 million in the prior-year period. Based on income before income taxes of €341 million, the increase in net working capital compared to December 31, 2015, resulted in a cash outflow of €203 million. In the prior-year period, income before income taxes was €246 million and the cash outflow from the increase in net working capital was €161 million.
There was a $€1,095$ million net cash outflow from investing activities in the first nine months of 2016, against €166 million a year earlier. The cash outflow in the reporting period resulted in particular from payments for financial assets of €585 million associated with investing the purchase price payment received from Saudi Aramco and payments of €228 million for intangible assets and property, plant and equipment, compared with €229 million in the prior-year period. In addition, there was a cash outflow of around €200 million for the addition to German pension fund assets and payments of around €200 million for the acquisition of the Clean and Disinfect specialties business of U.S. company Chemours.
Net cash provided by financing activities came to €714 million, compared with net cash of €232 million used in financing activities in the first nine months of 2015. This was mainly attributable to a cash inflow of €1.2 billion provided by Saudi Aramco's interest in ARLANXEO. Outflows of €415 million for the repayment of financial liabilities had an opposing effect.
Financing and liquidity
Net financial liabilities totaled €788 million as of September 30, 2016, compared with €1,211 million as of December 31, 2015. Of the purchase price paid in cash by Saudi Aramco for its interest in ARLANXEO, €525 million is invested in time deposits and €60 million in securities available for sale. As a result, as of September 30, 2016, net financial liabilities amounted to €203 million after deduction of time deposits and securities available for sale.
Net Financial Liabilities
| $\epsilon$ million | Dec. 31, 2015 | Sep. 30, 2016 |
|---|---|---|
| Non-current financial liabilities | 1,258 | 1,256 |
| Current financial liabilities | 443 | 78 |
| Less: | ||
| Liabilities for accrued interest | (24) | (23) |
| Cash and cash equivalents | (366) | (521) |
| Near-cash assets | (100) | (2) |
| Net financial liabilities | 1,211 | 788 |
| Less time deposits and securities available for sale |
(585) | |
| Net financial liabilities after deduction of time deposits and |
||
| securities available for sale | 1,211 | 203 |
Provisions for pensions totaled €1,479 million as of September 30, 2016, compared with €1,215 million as of December 31, 2015. This increase was primarily due to a decline in discount rates, particularly in Germany.
Significant capital expenditure projects
The Saltigo business unit in the Advanced Intermediates segment is expanding its production network at the site in Leverkusen, Germany. As part of its realignment project, LANXESS is investing about €60 million at its largest agrochemicals site. Synthesis capacities for custom manufacturing are being expanded by the addition of two multipurpose production lines, several reactor modules and a new container storage area. Work on this expansion began in June 2016. Production is due to start at the end of 2017.
Outlook
The political and economic risks have not changed substantially compared with our original forecast for 2016 published in the Annual Report 2015. The chemical industry is forecast to develop in line with expectations. A continued downturn in production is anticipated in Latin America. With regard to our customer industries, our expectations remain broadly unchanged compared with the beginning of the year.
Against the backdrop of our good quarterly results, we are raising our full-year guidance for EBITDA pre exceptionals to between €960 million and €1 billion.
Financial Data as of September 30, 2016
Statement of Financial Position LANXESS Group
| € million | Dec. 31, 2015 | Sep. 30, 2016 |
|---|---|---|
| ASSETS | ||
| Intangible assets | 300 | 481 |
| Property, plant and equipment | 3,447 | 3,339 |
| Investments accounted for using the equity method | $\circ$ | $\mathbf{0}$ |
| Investments in other affiliated companies | 12 | 11 |
| Non-current derivative assets | $\overline{1}$ | 2 |
| Other non-current financial assets | 21 | 19 |
| Non-current income tax receivables | 11 | 14 |
| Deferred taxes | 361 | 510 |
| Other non-current assets | 27 | 24 |
| Non-current assets | 4,180 | 4,400 |
| Inventories | 1,349 | 1,395 |
| Trade receivables | 956 | 1,084 |
| Cash and cash equivalents | 366 | 521 |
| Near-cash assets | 100 | 2 |
| Current derivative assets | 14 | 17 |
| Other current financial assets | $\overline{4}$ | 589 |
| Current income tax receivables | 44 | 43 |
| Other current assets | 206 | 191 |
| Current assets | 3,039 | 3,842 |
| Total assets | 7,219 | 8,242 |
| EQUITY AND LIABILITIES | ||
| Capital stock and capital reserves | 1,317 | 1,316 |
| Other reserves | 1,313 | 1,123 |
| Net income | 165 | 190 |
| Other equity components | (485) | (300) |
| Equity attributable to non-controlling interests | 13 | 1,124 |
| Equity | 2,323 | 3,453 |
| Provisions for pensions and other post-employment benefits | 1,215 | 1,479 |
| Other non-current provisions | 271 | 279 |
| Non-current derivative liabilities | 19 | 6 |
| Other non-current financial liabilities | 1,258 | 1,256 |
| Non-current income tax liabilities | 19 | 16 |
| Other non-current liabilities | 108 | 98 |
| Deferred taxes | 46 | 84 |
| Non-current liabilities | 2,936 | 3,218 |
| Other current provisions | 411 | 467 |
| Trade payables | 779 | 727 |
| Current derivative liabilities | 100 | 25 |
| Other current financial liabilities | 443 | 78 |
| Current income tax liabilities | 85 | 138 |
| Other current liabilities | 142 | 136 |
| Current liabilities | 1,960 | 1,571 |
| Total equity and liabilities | 7,219 | 8,242 |
Income Statement LANXESS Group
| € million | Q3 2015 | Q3 2016 | 9M 2015 | 9M 2016 |
|---|---|---|---|---|
| Sales | 1,953 | 1,921 | 6,096 | 5,784 |
| Cost of sales | (1,498) | (1, 475) | (4,713) | (4,400) |
| Gross profit | 455 | 446 | 1,383 | 1,384 |
| Selling expenses | (190) | (192) | (573) | (577) |
| Research and development expenses | (32) | (34) | (98) | (96) |
| General administration expenses | (70) | (67) | (202) | (212) |
| Other operating income | 34 | 25 | 128 | 105 |
| Other operating expenses | (93) | (56) | (294) | (175) |
| Operating result (EBIT) | 104 | 122 | 344 | 429 |
| Income from investments accounted for using the equity method | 0 | $\overline{0}$ | $\circ$ | $\Omega$ |
| Interest income | $\overline{2}$ | $\overline{2}$ | 3 | 5 |
| Interest expense | (18) | (18) | (52) | (54) |
| Other financial income and expense | (20) | (6) | (49) | (39) |
| Financial result | (36) | (22) | (98) | (88) |
| Income before income taxes | 68 | 100 | 246 | 341 |
| Income taxes | (27) | (40) | (97) | (145) |
| Income after income taxes | 41 | 60 | 149 | 196 |
| of which attributable to non-controlling interests | $\bigcirc$ | (2) | (1) | 6 |
| of which attributable to LANXESS AG stockholders [net income] | 41 | 62 | 150 | 190 |
| Earnings per share (undiluted/diluted) (€) | 0.45 | 0.68 | 1.64 | 2.08 |
J.
Statement of Comprehensive Income LANXESS Group
| $\epsilon$ million | Q3 2015 | Q3 2016 | 9M 2015 | 9M 2016 | |
|---|---|---|---|---|---|
| Income after income taxes | 41 | 60 | 149 | 196 | |
| Items that will not be reclassified subsequently to profit or loss | |||||
| Remeasurements of the net defined benefit liability for post-employment benefit plans | (16) | (57) | (6) | (451) | |
| Income taxes | 6 | 20 | 4 | 145 | |
| (10) | (37) | (2) | (306) | ||
| Items that may be reclassified subsequently to profit or loss if specific conditions are met |
|||||
| Exchange differences on translation of operations outside the eurozone | (122) | (4) | (56) | 43 | |
| Financial instruments | (13) | 3 | (39) | 81 | |
| Income taxes | (3) | 12 | (24) | ||
| (131) | (4) | (83) | 100 | ||
| Other comprehensive income, net of income tax | (141) | (41) | (85) | (206) | |
| Total comprehensive income | (100) | 19 | 64 | (10) | |
| of which attributable to non-controlling interests | 8 | (1) | 37 | ||
| of which attributable to LANXESS AG stockholders | (100) | 11 | 65 | (47) | |
Statement of Changes in Equity LANXESS Group
| stock | Capital reserves |
Other reserves |
Net income |
Other equity components |
Equity attributable attributable |
Equity | Equity | |
|---|---|---|---|---|---|---|---|---|
| Currency translation adjustment |
Financial instruments |
LANXESS AG stockholders |
controlling interests |
|||||
| 91 | 1,226 | 1,253 | 47 | (407) | (51) | 2,159 | $\overline{2}$ | 2,161 |
| 47 | (47) | $\circ$ | $\mathbf{0}$ | |||||
| $\Omega$ | 9 | 9 | ||||||
| (46) | (46) | $\bigcirc$ | (46) | |||||
| (2) | 150 | (56) | (27) | 65 | (1) | 64 | ||
| 150 | 150 | (1) | 149 | |||||
| (56) | (27) | (85) | 0 | (85) | ||||
| 91 | 1,226 | 1,252 | 150 | (463) | (78) | 2,178 | 10 | 2,188 |
| 91 | 1,226 | 1,313 | 165 | (422) | (63) | 2,310 | 13 | 2,323 |
| 165 | (165) | $\bigcirc$ | $\Omega$ | |||||
| 8 | 112 | $\overline{2}$ | 122 | 1,074 | 1,196 | |||
| (55) | (55) | $\bigcirc$ | (55) | |||||
| (308) | 190 | 17 | 54 | (47) | 37 | (10) | ||
| 190 | 190 | 6 | 196 | |||||
| (308) | 17 | 54 | (237) | 31 | (206) | |||
| (1) | 17 | 54 | (1) | (1) | ||||
| 91 | 1,225 | 1,123 | 190 | (293) | (7) | 2,329 | 1,124 | 3,453 |
| (2) | (loss) | to | to non- |
Statement of Cash Flows LANXESS Group
| € million | Q3 2015 | Q3 2016 | 9M 2015 | 9M 2016 | |
|---|---|---|---|---|---|
| Income before income taxes | 68 | 100 | 246 | 341 | |
| Depreciation and amortization | 114 | 119 | 348 | 354 | |
| Gains on disposals of intangible assets and property, plant and equipment | $\Omega$ | (42) | $\Omega$ | ||
| Income from investments accounted for using the equity method | $\circ$ | $\mathbf{O}$ | $\bigcirc$ | $\Omega$ | |
| Financial losses | 17 | 9 | 49 | 42 | |
| Income taxes paid | (47) | (37) | (70) | (98) | |
| Changes in inventories | (34) | (58) | (27) | (39) | |
| Changes in trade receivables | 93 | 35 | (52) | (113) | |
| Changes in trade payables | (97) | 45 | (82) | (51) | |
| Changes in other assets and liabilities | 76 | 91 | (28) | 96 | |
| Net cash provided by operating activities | 190 | 304 | 342 | 532 | |
| Cash outflows for purchases of intangible assets and property, plant and equipment | (100) | (106) | (229) | (228) | |
| Cash inflows from (cash outflows for) financial assets | 142 | 130 | 14 | (481) | |
| Cash outflows for the acquisition of subsidiaries and other businesses, | |||||
| less acquired cash and cash equivalents | (198) | (198) | |||
| Cash inflows from sales of intangible assets and property, plant and equipment | 1 | $\overline{2}$ | 45 | 7 | |
| Interest and dividends received | 3 | $\overline{2}$ | $\overline{4}$ | 5 | |
| Cash outflows for external financing of pension obligations (CTA) | (200) | ||||
| Net cash provided by (used in) investing activities | 46 | (170) | (166) | (1,095) | |
| Proceeds from borrowings | 23 | 3 | 76 | 44 | |
| Repayments of borrowings | (82) | (252) | (213) | (415) | |
| Interest paid and other financial disbursements | (16) | (15) | (58) | (54) | |
| Cash inflows from non-controlling interests | q | 1.194 | |||
| Dividend payments | (46) | (55) | |||
| Net cash provided by (used in) financing activities | (75) | (264) | (232) | 714 | |
| Change in cash and cash equivalents from business activities | 161 | (130) | (56) | 151 | |
| Cash and cash equivalents at beginning of period | 204 | 650 | 418 | 366 | |
| Exchange differences and other changes in cash and cash equivalents | (15) | $\mathbf{1}$ | (12) | $\Delta$ | |
| Cash and cash equivalents at end of period | 350 | 521 | 350 | 521 | |
Business Unit Key Data
Key Data Third quarter
| € million | Advanced Intermediates |
Performance Chemicals |
High Performance Materials |
ARLANXEO | Reconciliation | LANXESS | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 2015 |
Q 3 2016 |
Q 3 2015 |
Q 3 2016 |
Q 3 2015 |
Q3 2016 |
Q3 2015 |
Q 3 2016 |
Q3 2015 |
Q 3 2016 |
Q 3 2015 |
Q 3 2016 |
|
| External sales | 440 | 435 | 524 | 541 | 263 | 257 | 713 | 675 | 13 | 13 | 1,953 | 1,921 |
| Inter-segment sales | 14 | 17 | 3 | $\mathfrak{D}$ | $\Omega$ | $\bigcap$ | $\Omega$ | (18) | (19) | $\bigcap$ | $\Omega$ | |
| Segment/Group sales | 454 | 452 | 527 | 543 | 264 | 257 | 713 | 675 | (5) | (6) | 1,953 | 1,921 |
| Segment result/EBITDA | ||||||||||||
| pre exceptionals | 76 | 83 | 86 | 91 | 32 | 42 | 94 | 91 | (53) | (50) | 235 | 257 |
| EBITDA margin pre exceptionals (%) | 17.3 | 19.1 | 16.4 | 16.8 | 12.2 | 16.3 | 13.2 | 13.5 | 12.0 | 13.4 | ||
| EBITDA | 76 | 83 | 86 | 91 | 32 | 42 | 92 | 91 | (68) | (66) | 218 | 241 |
| EBIT pre exceptionals | 52 | 57 | 63 | 68 | 21 | 31 | 42 | 36 | (57) | (54) | 121 | 138 |
| EBIT | 52 | 57 | 63 | 68 | 21 | 31 | 40 | 36 | (72) | (70) | 104 | 122 |
| Segment capital expenditures | 25 | 32 | 34 | 32 | 5 | 6 | 40 | 32 | 3 | 6 | 107 | 108 |
| Depreciation and amortization | 24 | 26 | 23 | 23 | 11 | 11 | 52 | 55 | 4 | 4 | 114 | 119 |
2015 figures restated in line with the changed segment structure
Key Data Nine months
| Advanced Intermediates |
Performance Chemicals |
High Performance Materials |
ARLANXEO | Reconciliation | LANXESS | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $\epsilon$ million | 9M 2015 |
9M 2016 |
9M 2015 |
9M 2016 |
9M 2015 |
9M 2016 |
9M 2015 |
9M 2016 |
9M 2015 |
9M 2016 |
9M 2015 |
9M 2016 |
| External sales | 1,386 | 1,341 | 1.610 | 1.617 | 847 | 805 | 2,216 | 1,985 | 37 | 36 | 6.096 | 5,784 |
| Inter-segment sales | 40 | 45 | 8 | 8 | $\overline{2}$ | $\cap$ | $\Omega$ | (50) | (54) | $\bigcap$ | $\Omega$ | |
| Segment/Group sales | 1,426 | 1,386 | 1,618 | 1,625 | 849 | 806 | 2,216 | 1,985 | (13) | (18) | 6,096 | 5,784 |
| Segment result/EBITDA | ||||||||||||
| pre exceptionals | 248 | 260 | 283 | 303 | 90 | 125 | 307 | 299 | (194) | (175) | 734 | 812 |
| EBITDA margin pre exceptionals (%) | 17.9 | 19.4 | 17.6 | 18.7 | 10.6 | 15.5 | 13.9 | 15.1 | 12.0 | 14.0 | ||
| EBITDA | 247 | 260 | 275 | 303 | 110 | 125 | 293 | 299 | (233) | (204) | 692 | 783 |
| EBIT pre exceptionals | 174 | 184 | 218 | 235 | 57 | 92 | 154 | 134 | (206) | (187) | 397 | 458 |
| EBIT | 173 | 184 | 210 | 235 | 76 | 92 | 130 | 134 | (245) | (216) | 344 | 429 |
| Segment capital expenditures | 56 | 73 | 77 | 71 | 16 | 16 | 87 | 73 | Q | 10 | 245 | 243 |
| Depreciation and amortization | 74 | 76 | 65 | 68 | 34 | 33 | 163 | 165 | 12 | 12 | 348 | 354 |
| Employees as of September 30 | ||||||||||||
| (previous year: as of Dec. 31) | 3,259 | 3,351 | 5,138 | 5,582 | 1,546 | 1,574 | 3,491 | 3,473 | 2,791 | 2,720 | 16,225 | 16,700 |
2015 figures restated in line with the changed segment structure
Financial Calendar 2017
March 16 Publication of results for fiscal 2016
May 11 Quarterly Statement as of March 31, 2017
May 26 Annual Stockholders' Meeting, Cologne
August 10 Interim Report H1 2017
November 9 Quarterly Statement as of September 30, 2017
Contacts
Corporate Communications Christiane Dörr Tel. +49(0) 221 8885 2674 E-mail: [email protected]
Investor Relations Ulrike Rockel Tel. +49(0) 221 8885 9834 E-mail: [email protected]
Date of publication: November 10, 2016
Masthead
LANXESS AG Kennedyplatz 1 50569 Cologne Tel. +49 (0) 221 8885 0 www.lanxess.com
Agency: Kirchhoff Consult AG, Hamburg, Germany
English edition: Currenta GmbH & Co. OHG Language Service
Your direct route to the LANXESS IR website
Disclaimer
This publication contains certain forward-looking statements, including assumptions, opinions and views of the company or cited from third-party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of the company to differ materially from the estimations expressed or implied herein. The company does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed herein or the actual occurrence of the forecasted developments. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the company nor any of its parent or subsidiary undertakings nor any officers, directors or employees of such entities accepts any liability whatsoever arising directly or indirectly from the use of this document.
Publisher:
LANXESS AG 50569 Cologne Germany www.lanxess.com