Solvac SA: Increase in net profits of 27 % compared to 2015

1. The corporate Solvac S.A. 2016 net income is up 27% compared to 2015 (see 3 page 2).

The cash revenue ¹ , including the inflow of dividends from its participation in Solvay, came to €107.3 million versus €87.0 million in 2015, namely, an increase of 23.3% mainly attributable to the increase of its investment in Solvay as shown in the table below:

EUR million	2015	2016
Solvay dividend per share - January (in EUR)	1.3333	1.3600
Number of Solvay shares held by Solvac (in million)	25.6	32.5
Solvay dividend received in January (in million EUR) (a)	34.1	44.2 2
Solvay dividend per share - May (in EUR)	2.0667 3	1.9400
Number of Solvay shares held by Solvac (in million)	25.6	32.5
Solvay dividend received in May (in million EUR) (b)	52.9	63.1
Cash revenue (a) + (b) 1	87.0	107.3
Cash income 1 4	82.0	101.7

 

Insofar as the company accounts so authorise, it is on the basis of cash income, after covering expenses (primarily financial charges), that the Board of Directors determines the amounts proposed for distribution by Solvac.

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¹ Solvac uses certain non-IFRS performance indicators that are defined here:

• Cash revenue refers to income received during the period.  It is defined as the cash flow obtained by the payment of dividends received from Solvay.
• Cash income means the cash revenue reduced by the interest charges and other income and expenses (financial/operational).  It is on the basis of this indicator that the Board of Directors determines the amounts proposed for distribution by Solvac.

² In accordance with accounting principles, the dividend on the 6.932.858 shares acquired in December 2015 and January 2016 was recorded as a deduction of the purchase price and not as financial revenue, due to the fact that it was implicitly included in the acquisition value.  This represents an amount of EUR 9.4 million that is not included in financial income, but in the 2016 cash revenue.

³ Figure not adjusted for the capital increase.

⁴ The company figures have been restated to conform to the definition of the cash revenue.

 

2. The Board of Directors has prepared the Solvac consolidated financial statements at 31 December 2016. These accounts have been submitted to the Statutory Auditor. They are presented according to IFRS standards.

Consolidated income statement

EUR million	2015	2016
Income from investments accounted for under the equity method	125.6	195.6
Operating expenses	-1.5	-1.5
Capital gain from sale of Solvay shares	0	0
Cost of borrowings	-3.5	-4.1
Net income	120.6	190.0
Net earnings and diluted earnings per share (EUR) 1	7.8	8.9

¹ The net income per share and the net diluted income per share are identical.  The average weighted number of shares used for the calculation per share was 15,418,468 in 2015 and 21,375,033 in 2016.

Solvac recorded for the year ended 31 December 2016 net consolidated income of €190.0 million (namely, €8.9 per share) versus €120.6 million (namely, €7.8 per share) in 2015, as a result of the change in income from applying the equity method to Solvay.

 

3. The Board of Directors reports the figures of the corporate accounts relating to Solvac SA en 2016 :

EUR thousand		2015	2016
Financial result		84,147	101,850
Operating result		-1,452	-1,499
Result on ordinary activities before tax		82,695	100,351
Extraordinary result		-3,654	0
Profit before tax		79,041	100,351
Net income		79,041	100,351
Gross payment to shareholders		76,568	102,600
Retained earnings		2,473	-2,249

 

The 2016 net income is €100.4 million (versus 79.0 million in 2015) attributable to the increase in dividends per share paid or decided by Solvay.

 

4. Two interim dividend payments were made, respectively on 25 August 2016 and on 27 December 2016, the second representing in principle the balance due, which the General Shareholders Meeting will be asked to approve. In total, each share received in 2016 a gross compensation 6.6 % greater than in 2015 :

EUR	2015	2016
Gross dividend per share	4.50 1	4.80

5. The Board of Directors of Solvay decided on 23 February 2017 to pay on 16 May 2017 the balance due on the dividend for the financial year 2016, which comes to EUR 2.13 gross per share.

  ¹  Adjusted figure for the capital increase (coefficient of 0.898137)

Taking into account the interim dividend paid in January 2017, the gross dividend of Solvay reaches EUR 3.45 for the fiscal year 2016, up to 4.5 % compared to historical dividend of € 3.30 gross per share in fiscal year 2015.

 

 

 

 

 

1. Report of the statutory auditor

Deloitte confirmed that its audit work on the consolidated financial statements of Solvac SA, in accordance with International Financial Reporting Standards as adopted by the European Union and with the legal and regulatory requirements applicable in Belgium, are substantially completed. Deloitte confirms that the financial information contained in this press release requires no comment on its part and is consistent with the consolidated financial statements of Solvac SA. The full audit report of the consolidated financial statements and the full report of the Commissioner on the audit of the annual financial information included in the annual report 2016 will be published on the internet (www.solvac.be) on 31 March 2017.

 

2. Content

This press release contains regulated information and is drafted in compliance with the applicable IFRS standards. The risk management analysis is included in the notes to the consolidated financial statements as well as in the annual report, which will be available on the Internet ( www.solvac.be ).

 

3. Solvac shares

	2015	2016
Number of shares issued at the end of the period	21,375,033	21,375,033
Average number of shares for calculating IFRS earnings per share	15,418,468	21,375,033
Average number of shares for calculating IFRS diluted earnings per share	15,418,468	21,375,033

 

4. Statement by the responsible persons

M. JP. Delwart, Chairman of the Board of Directors, and M. B. de Laguiche, Managing Director of Solvac, confirm that to the best of their knowledge:

a) the financial information, prepared in conformity with applicable accounting standards, reflect a true and fair view of the net worth, the financial situation and the results of the Solvac Group and of Solvac S.A. ;

b) the report contains a faithful presentation of the significant events occurred in the 2016 financial year, and their impact on the financial information.

c) there are no transactions with related parties.

 

Kay dates for financial communications

· 31 March 2017:             Publication of the 2016 annual report on www.solvac.be

· 9 May 2017:                  Ordinary General Meeting of the Shareholders (2:30 pm) followed by an Extraordinary General Meeting

· 1 August 2017:             Result from the first half of 2017 and announcement of the first interim dividend for financial year 2017

· 25 August 2017:            Payment of the first interim dividend for financial year 2017

· 13 December 2017:       Announcement of the second interim dividend for financial year 2017

· 28 December 2017:       Payment of the second interim dividend for financial year 2017

 

For more information, please contact:

SOLVAC S.A.

Investor Relations

Champs Elyséesstreet, 43 - B - 1050 Brussels

Tel.: 32/2/639 66 30

Fax: 32/2/639 66 31

Email: Investor.relations@solvac.be

 

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