Polycarbonates

In fiscal year 2020, core volumes sold in Polycarbonates were down by 3.0% from the prior-year period. Key drivers were lower volumes sold in the automotive and transportation industry, mainly in the EMLA and NAFTA regions, and in the electrical, electronics and household appliances industry, especially in the APAC region. In contrast, demand from the construction industry increased. The coronavirus pandemic led to a sharp slide in demand, particularly in the first six months of fiscal 2020, which in turn resulted in a drop in core volumes sold. In the second half of the year, a robust recovery in demand pushed core volumes sold over the prior-year level.

Sales in the Polycarbonates segment fell by 14.1% in the year 2020 to €2,985 million (previous year: €3,473 million), mostly due to lower selling prices, which reduced sales by 7.0%. A decrease in total volumes sold and exchange rate movements had negative effects on sales of 2.3% and 1.5%, respectively. The portfolio effect from the sale of the European polycarbonate sheets business in the first quarter of fiscal 2020 adversely affected sales, which declined by 3.3%.

In the EMLA region, sales tumbled 17.8% to €942 million (previous year: €1,146 million). The aforementioned portfolio effect and a reduction in average selling prices each significantly lowered sales. Exchange rate developments also pushed sales down somewhat. Total volumes sold remained at the prior-year level, however. Sales in the NAFTA region declined by 16.9% to €610 million (previous year: €734 million). Lower total volumes sold and a lower selling price level both had a strong adverse effect on sales. Moreover, exchange rate changes reduced sales somewhat. The APAC region saw sales slide by 10.0% to €1,433 million (previous year: €1,593 million), largely driven by a sharp drop in average selling prices. At the same time, exchange rate movements had a mildly negative effect on sales. However, total volumes sold remained stable year over year.

Polycarbonates
Quarterly sales

€ million

Polycarbonates
Quarterly EBITDA

€ million

In fiscal 2020, EBITDA in the Polycarbonates segment grew by 3.2% over the prior-year period, rising to €553 million (previous year: €536 million). Lower raw material prices along with an improved cost level thanks to cost-cutting measures had a positive effect on earnings. However, reduced selling prices and a decline in total volumes sold adversely affected EBITDA. Moreover, the portfolio effect from the sale of the European polycarbonate sheets business in the first quarter of 2020 reduced sales.

EBIT increased by 10.7% to €332 million (previous year: €300 million).

Free operating cash flow was down by 19.1% to €327 million (previous year: €404 million). A decrease in funds released from working capital had a negative effect, whereas reduced cash outflows for additions to property, plant, and equipment had a positive effect.