Business Development by Segment

Covestro

Positive development in main customer industries

In 2016, Covestro’s main customer industries (automotive, construction, electrical and electronics, and furniture) continued to develop positively.

Key Data – Covestro

 

 

Q4 2015

Q4 2016

Change

 

2015

2016

Change

 

 

€ million

€ million

Repor­ted %

Fx & p adj. %

 

€ million

€ million

Repor­ted %

Fx & p adj. %

2015 figures restated; Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see Chapter “Alternative Performance Measures Used by the Bayer Group.”

Sales

 

2,774

2,997

+8.0

+8.6

 

11,982

11,826

−1.3

0.0

Change in sales

 

 

 

 

 

 

 

 

 

 

Volume

 

+1.8%

+4.0%

 

 

 

+2.6%

+5.3%

 

 

Price

 

−12.4%

+4.6%

 

 

 

−7.7%

−5.3%

 

 

Currency

 

+4.7%

−0.6%

 

 

 

+7.9%

−1.3%

 

 

Portfolio

 

0.0%

0.0%

 

 

 

0.0%

0.0%

 

 

 

 

€ million

€ million

Repor­ted %

Fx adj. %

 

€ million

€ million

Repor­ted %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

1,132

1,104

−2.5

−2.6

 

4,928

4,761

−3.4

−3.3

North America

 

672

671

−0.1

−1.6

 

2,885

2,740

−5.0

−5.3

Asia / Pacific

 

798

1,038

+30.1

+32.2

 

3,377

3,619

+7.2

+9.8

Latin America

 

172

184

+7.0

+12.2

 

792

706

−10.9

−1.8

EBITDA1

 

129

373

+189.1

 

 

1,368

1,984

+45.0

 

Special items

 

(128)

 

 

 

(291)

 

 

EBITDA before special items1

 

257

373

+45.1

 

 

1,659

1,984

+19.6

 

EBITDA margin before special items1

 

9.3%

12.4%

 

 

 

13.8%

16.8%

 

 

EBIT

 

(79)

203

.

 

 

635

1,304

+105.4

 

Special items

 

(144)

 

 

 

(332)

 

 

EBIT before special items1

 

65

203

.

 

 

967

1,304

+34.9

 

Net cash provided by operating activities

 

603

678

+12.4

 

 

1,452

1,824

+25.6

 

Sales level year on year

Sales of Covestro were level year on year in 2016, at €11,826 million (Fx & portfolio adj. 0.0%). Selling prices receded overall, due primarily to lower raw material prices. Volumes were above the level of the prior year overall.

Sales by Business Unit

 

 

Q4 2015

Q4 2016

Change

 

2015

2016

Change

 

 

€ million

€ million

Repor­ted %

Fx & p adj. %

 

€ million

€ million

Repor­ted %

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted

Polyurethanes

 

1,382

1,541

+11.5

+12.2

 

6,084

5,926

−2.6

−1.2

Polycarbonates

 

759

832

+9.6

+10.7

 

3,169

3,297

+4.0

+5.8

Coatings, Adhesives, Specialties

 

477

481

+0.8

+0.8

 

2,092

2,039

−2.5

−1.8

Other Covestro business

 

156

143

−8.3

−9.0

 

637

564

−11.5

−11.5

Total

 

2,774

2,997

+8.0

+8.6

 

11,982

11,826

−1.3

0.0

Sales by business unit

  • At Polyurethanes, lower selling prices overall were not fully offset by higher volumes and led to a 1.2% (Fx & portfolio adj.) decline in sales to €5,926 million.
  • Polycarbonates improved sales by 5.8% (Fx & portfolio adj.) to €3,297 million, with appreciable volume growth more than compensating for lower selling prices.
  • Sales of Coatings, Adhesives, Specialties fell by 1.8% (Fx & portfolio adj.) to €2,039 million, primarily because of lower selling prices.

Earnings

In 2016, EBITDA before special items increased by a substantial 19.6% to €1,984 million. Positive earnings contributions from reductions in raw material prices and higher volumes outweighed lower selling prices and a negative currency effect of around €20 million.

Compared with the previous year, Covestro more than doubled EBIT to €1,304 million (+105.4%). No special items were recorded (2015: special charges of €332 million).

Special Items1 Covestro

 

 

EBIT Q4 2015

EBIT Q4 2016

 

EBIT
2015

EBIT
2016

 

EBITDA Q4 2015

EBITDA Q4 2016

 

EBITDA 2015

EBITDA 2016

 

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

1

For definition see Chapter “Alternative Performance Measures Used by the Bayer Group.”

Restructuring

 

(143)

 

(329)

 

(127)

 

(288)

Revaluation of other receivables

 

(1)

 

(3)

 

(1)

 

(3)

Total special items

 

(144)

 

(332)

 

(128)

 

(291)

Online Annex: A 2.2.2-5

limited assurance

The development of Covestro in 2016 is shown in the following graphics.

Covestro Quarterly Sales

Covestro Quarterly Sales (bar chart)Covestro Quarterly Sales (bar chart)

2015 figures restated

Covestro
Quarterly EBIT

Covestro Quarterly EBIT (bar chart)Covestro Quarterly EBIT (bar chart)

2015 figures restated

Covestro
Quarterly EBITDA before Special Items

Covestro Quarterly EBITDA before Special Items (bar chart)Covestro Quarterly EBITDA before Special Items (bar chart)

2015 figures restated