In € million

 

 

 

FY 2016

 

FY 2015 pro forma(1)

(1)

The 2015 detailed cash flow statement was not presented on a pro forma basis and was not restated for the discontinuation of Acetow and Vinythai. The capex for 2015 is however presented both on a pro forma and restated basis and therefore can’t be reconciled with the detailed cash flow statement.

Acquisition (-) of tangible assets

 

a

 

(883)

 

 

Acquisition (-) of intangible assets

 

b

 

(98)

 

 

Capex

 

c = a+b

 

(981)

 

(1,160)

Capex flow from discontinued operations

 

d

 

(51)

 

(103)

Capex from continuing operations

 

e = c-d

 

(929)

 

(1,057)

In € million

 

 

 

FY 2016

 

FY 2015 pro forma

Capex from continuing operations

 

a

 

(929)

 

(1,057)

Underlying EBITDA

 

b

 

2,284

 

2,125

Cash conversion

 

c = (a+b)/b

 

59%

 

50%

Capex from continuing operations was € (929) m, € 127 m lower than in 2015, in line with the planned reduction of capex intensity. Cash conversion thereby rose from 50% to 59%.

Besides health, safety & environment and maintenance capital expenditures, the Group selectively invested in a number of strategic projects, with priority given to businesses and geographies with superior and sustainable growth potential.

Production expansions across the globe to serve customers were realized in 2016. The most significant are:

  • the announcement of extra composite capabilities with a state-of-the-art resin facility at an upgraded site in Germany. Production should begin in the second quarter of 2017 after customer qualifications, to supply the LEAP engine for Airbus and Boeing programs;
  • the launch of Highly Dispersible Silica production at its new South Korean plant to meet strong and growing regional demand for energy saving tires;
  • The new hydrogen peroxide plant, in China, began production for high-quality applications, serving growing demand for electronics, water treatment and aquaculture industries, as well as supplying Solvay’s own semiconductor and flavor businesses.

A number of growth projects represented significant capital expenditures in 2016, but are still under construction:

  • the new mega Hydrogen Peroxide for Propylene Oxide (HPPO) plant (330kt/year) in Saudi Arabia in joint venture with Sadara Aramco and Dow, which was largely finished by end 2015 but due to open in 2016 only;
  • the construction of a second PEEK polymers plant for Specialty Polymers, built in the United States (Georgia) ;
  • the second phase of the fluoro-polymers plant in China (Changshu) for Specialty Polymers, to start-up in 2017.