In € million

 

Underlying

 

FY 2016

 

FY 2015 pro forma

 

% yoy

Net sales

 

4,313

 

4,503

 

(4.2)%

Specialty Polymers

 

1,922

 

1,901

 

1.1%

Composite Materials

 

1,073

 

1,169

 

(8.2)%

Special Chem

 

862

 

912

 

(5.5)%

Silica

 

455

 

521

 

(13)%

EBITDA

 

1,110

 

1,079

 

2.9%

EBITDA margin

 

26%

 

24%

 

1.8pp

EBIT margin

 

19%

 

18%

 

1.5pp

CFROI

 

9.4%

 

9.2%

 

0.2pp

Cash conversion

 

61%

 

62%

 

(0.7)pp

Research & innovation intensity

 

3.6%

 

3.6%

 

Net sales evolution

Advanced Materials – Net sales evolution (bar chart)Advanced Materials – Net sales evolution (bar chart)

Net sales were € 4,313 m, with the sales shortage mainly attributable to the divestiture of Special Chem’s refrigerants and PCC businesses in 2015 combined with unfavorable foreign exchange. Lower prices were balanced by modest volume growth. Sales grew in Specialty Polymers as strong volumes in diverse applications such as in consumer goods, automotive and medical sectors more than offset lower demand in smart devices. Sales volumes in Composite Materials were affected by the anticipated rate declines of older aircraft programs and reduced sales to industrial markets. Special Chem reported good demand for automotive catalysts and growth from the semi-conductor market. Silica volume growth across regions in the energy-efficient tire market was largely offset by the devaluation of the bolivar in Venezuela.

Underlying EBITDA rose 2.9% to € 1,110 m driven by operational excellence programs and Cytec synergies, which increased EBITDA margin by 1.8 pp to 26%.