In € million

 

Underlying

 

FY 2016

 

FY 2015 pro forma

 

% yoy

(1)

Following the discontinuation of Vinythai, the only businesses reporting net sales in Chlorovinyls are residual trading and research activities in PVC, following the discontinuation of the European, Latin American and Asian chlorovinyl activities. These residual activities had no material impact on EBITDA. EBITDA includes, however, the net contribution from the RusVinyl joint venture, the Russian PVC activity, adjusted for financial charges.

Net sales

 

1,436

 

1,490

 

(3.6)%

Polyamide

 

1,414

 

1,448

 

(2.4)%

Chlorovinyls(1)

 

22

 

41

 

(47)%

EBITDA

 

222

 

141

 

57%

EBITDA margin

 

15%

 

9.5%

 

5.9pp

EBIT margin

 

9.5%

 

3.9%

 

5.6pp

CFROI

 

5.1%

 

3.5%

 

1.6pp

Cash conversion

 

57%

 

50%

 

7.2pp

Research & innovation intensity

 

2.1%

 

2.1%

 

Net sales evolution

Functional Polymers – Net sales evolution (bar chart)Functional Polymers – Net sales evolution (bar chart)

Net Sales were down (3.6)% to €1,436 m due to (6.4)% lower prices. This resulted from a decrease in raw material costs, which was partially passed on to customers. Volumes rose 3.5% thanks to the favorable market conditions for polyamides, both upstream and downstream. The (1.4)% foreign exchange fluctuations on conversion came from the Euro’s appreciation versus local currencies in Brazil and Korea, where Solvay operates major sites.

Underlying EBITDA increased 57% to € 222 m, reflecting the volume increase in polyamide combined with benefits from operational excellence programs, more than offsetting the sales price decrease. RusVinyl, Solvay’s Russian PVC joint venture, contributed significantly to results, operating close to full capacity throughout the year. The underlying EBITDA margin grew 5.9 pp to 15% versus 2015.