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2014-05-06

Solvay S.A.: Solvay Group:1st Quarter 2014 Business Review

Brussels, May 6th, 2014

Q1 highlights

* Group net sales at € 2,552 m, up 1% yoy, with volumes 3%, prices (1)%,
forex (4)% and scope 4%.
* REBITDA at € 467 m, up 11% yoy driven by volume growth (organic and
external) and strong delivery on excellence measures, and despite
unfavorable foreign exchange rates and one-offs. REBITDA margin widens to
18.3% of net sales, up 150 basis points yoy. * Advanced Formulations at €
102 m,down (9)% yoy , as Chemlogics' strong contribution was insufficient
to offset one-off impacts from industrial issues and extreme weather
conditions, and adverse forex; * Advanced Materials at record € 175 m,up
13% yoy , underpinned by strong innovation-driven volume growth and
operational efficiency; * Performance Chemicals at € 188 m,up 14% yoy ,
thanks to good pricing power and benefits from breakthrough excellence
programs; * Functional Polymers at € 40 m,up 19% yoy , supported by high
manufacturing yields, broad excellence initiatives and pricing; * Corporate
and Business Services at € (39) m. Net costsdown 16% yoy . CER sales
phase-out in 2013 was mitigated by tight cost control and favorable
currency impacts on costs.

* Adjusted EBIT at € 260 m,up 14% yoy ;
* Adjusted Net Income, Group share at € 107 m (€ 86 m in 2013);
* Adjusted EPS at € 1.28 (€ 1.03 in 2013);
* Free Cash Flow at € (97) m; net debt increased by € 318 m to € 1,459 m from
YE'13;
* Improving balance sheet efficiency: gross debt repayment of € 1.3 bn
equivalent to take place by May

Quote of the CEO

Solvay made a good start to the year thanks to improved demand and benefits
from our excellence initiatives. The demand recovery was reflected in higher
volumes in most of our businesses, while Chemlogics showed double-digit
operational earnings growth. Results from Group-wide excellence initiatives
helped to overcome headwinds from currency swings and one-off effects. As a
result, Solvay delivered solid earnings growth and margin expansion in the
first quarter. Throughout the year, the Group will continue its profound
transformation, focused on completing the various portfolio projects it
initiated and on further rolling out its excellence measures to create a
higher growth, less cyclical and more valuable company.

Outlook

The encouraging first quarter underpins our confidence that 2014 will show
good operating performance. The Group expects high single-digit REBITDA
growth at current perimeter and foreign exchange rates, and compared to the
2013 level as restated.

FORENOTE
All 2013 data are restated for comparison purposes for the Group's application
of IFRS 11 effective January 1st 2014.

Furthermore, Solvay presents Adjusted Income Statement performance indicators
that exclude non-cash Purchase Price Allocation (PPA) accounting impacts
related to the Rhodia acquisition.

To read the presentation in PDF

Follow us on twitter @SolvayGroup

As an international chemical group, SOLVAY assists industries in finding and
implementing ever more responsible and value-creating solutions. Solvay
generates 90% of its net sales in activities where it is among the world's
top three players. It serves many markets, varying from energy and the
environment to automotive and aeronautics or electricity and electronics,
with one goal: to raise the performance of its clients and improve society's
quality of life. The group is headquartered in Brussels, employs about 29,400
people in 56 countries and generated 9.9 billion euros in net sales in 2013.
Solvay SA is listed as SOLB.BE on NYSE Euronext in Brussels and Paris
(Bloomberg: SOLB:BB - Reuters: SOLB.BR).

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|Lamia Narcisse Caroline Jacobs Maria Alcon Geoffroy Raskin Edward Mackay |
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|Media Relations Media Relations Investor Relations Investor Relations |
|+33 1 53 56 59 62 +32 2 264 1530 Investor Relations +32 2 264 1540 +32 2 264 3687 |
| +32 2 264 1984 |
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Read this entire press release in PDF
http://hugin.info/133981/R/1781617/610357.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Solvay S.A. via Globenewswire

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