Our outlook for 2017
For 2017, based on the market conditions prevailing at the beginning of the year, Solvay expects underlying EBITDA to grow by mid-single digit, mainly driven by Advanced Materials and Advanced Formulations. Overall demand is anticipated to remain healthy and operational excellence momentum is expected to continue, albeit in an environment of rising raw material prices. The EBITDA outlook is based on constant scope and foreign exchange rates1.
- growth will be driven by most markets, including aerospace, automotive, consumer goods & healthcare and electronics.
- growth is projected in several end markets including agro, coatings and mining, with improving conditions in oil & gas.
- is expected to show stable to modest growth, with anticipated headwinds in the soda ash market offset by operational excellence and Solvay’s capacity increase in peroxides.
- is projected to be flat, retaining the growth achieved in 2016.
Corporate & Business Services
- are committed to excellence measures to offset inflation.
Free Cash Flow from continuing operations is expected to exceed € 800 million in 2017, compared to € 736 million in 2016, driven by higher EBITDA and reduced capital expenditures.
An integral part of our sustainable value creation is the targeted improvement in extra-financial objectives. After the strong delivery in 2016, we expect to continue to improve our greenhouse
gas intensity, and to further enhance the prominence of sustainable solutions in our portfolio.
Our expectations for 2017 are very much in line with the mid-term objectives shared with investors during our Capital Markets Day in September 2016.
1 Solvay is exposed to foreign exchange fluctuations. The main currency exposure is to the US dollar, Chinese yuan, Thai baht, Brazilian real, Russian ruble, Japanese yen and Korean won.