Solvay's enhanced profile after Cytec acquisition

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Following the acquisition of Cytec at year end 2015 and in order to provide a reference frame for the Group’s performance going forward, Solvay presents pro forma information for the year 2015.

These unaudited figures represent a situation as if the acquisition had taken place on January 1, 2015.

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2015 Key Data

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New segmentation

Following the acquisition of Cytec, Solvay has re-organized its segment set-up to enhance strategic coherence and improve alignment. Cytec’s former “In Process Separation” and “Additive Technologies” activities largely constitute the new GBU Technology Solutions included in Advanced Formulations, while the former “Aerospace Materials” and “Industrial Materials” activities are grouped in the new GBU Composite Materials that is included in Advanced Materials. Solvay's GBU Coatis is transferred to Performance Chemicals and the GBU Emerging Biochemicals is combined with RusVinyl in the GBU Chlorovinyls in Functional Polymers.

The following figures represent unaudited 2015 pro forma as if the Cytec acquisition had taken place on January 1, 2015.

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Stock performance since January 1, 2016

Since the beginning of the year, equity markets in general have been affected by the financial markets concerns on the global economic slowdown - particularly in emerging markets – and by the geopolitical situation. Moreover,  the Chemical sector widely and Solvay in particularly, have been further impacted by the fall in prices of raw materials and oil, compounded with its more cyclical nature. In this context, Solvay’s share price has gone down by 15.3% since the beginning of the year, what compares with a decline on average of  13.0% for its European peer group in the Chemical industry (i.e. Akzo Nobel, Arkema, BASF, Clariant, DSM, Evonik, Lanxess), during the same period. 

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source : Capital IQ as of 25th February 2016


In this environment, and assuming no further deterioration in market conditions, Solvay expects its REBITDA in 2016 to grow by high-single digits compared to the 2015 pro forma REBITDA [1] of €2,336 m (including Cytec).

[1] The current definition of REBITDA equates to Underlying EBITDA going forward.

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