Solutions & Specialties

In fiscal 2021, core volumes sold in the Solutions & Specialties segment grew by 26.0% over the prior-year period. This was mainly due to additional volumes from the Resins & Functional Materials (RFM) business acquired and growth in core volumes sold in the automotive and transportation industry and the electrical, electronics and household appliances industry, especially in the EMLA and APAC regions. At the same time, reduced product availability, for instance due to raw material bottlenecks, had a negative impact on core volumes sold and therefore limited our further organic growth opportunities.

The Solutions & Specialties segment’s sales were up by 49.3% to €7,554 million in fiscal 2021 (previous year: €5,060 million). A higher selling price level on account of an advantageous competitive situation increased sales by 21.3%. At the same time, the portfolio effect from the acquisition of the RFM business contributed 17.1% and the higher total volumes sold 11.8% to sales. In contrast, exchange rate developments reduced sales by 0.9%.

Sales in the EMLA region climbed by 49.7% to €2,835 million (previous year: €1,894 million). This was largely due to the aforementioned portfolio effect, which increased sales substantially. At the same time, higher selling prices and growth in total volumes sold each had a considerably positive effect on sales. Exchange rate movements had no notable effect on sales overall. The NA region grew sales by 35.7% to €1,594 million (previous year: €1,175 million). The previously mentioned portfolio effect, an increase in average selling prices, as well as higher total volumes sold all had a significant positive impact on sales. Exchange rate changes pushed sales slightly down. Sales in the APAC region were up by 57.0% to €3,125 million (previous year: €1,991 million). Higher selling price levels caused sales to increase strongly. Changes in total volumes sold and the aforementioned portfolio effect each had a significant positive effect on sales. At the same time, exchange rate movements were neutral overall in terms of sales.

Solutions & Specialties
Quarterly sales

€ million

Solutions & Specialties
Quarterly EBITDA

€ million

EBITDA in the Solutions & Specialties segment increased 1.1% over the prior-year period, growing to €751 million in fiscal 2021 (previous year: €743 million). Higher provisions for short-term variable compensation had a negative effect on EBITDA. Increased raw material prices outpaced higher selling prices and led to lower margins, which reduced earnings. Nonrecurring expenses related to the RFM acquisition also had a negative effect on earnings in the mid-double-digit million euro range. In contrast, positive synergy effects from the RFM acquisition were in the low double-digit million euro range thanks in particular to an efficiency boost in sales, administration, and procurement activities. An increase in total volumes sold also increased earnings.

EBIT declined 7.7% to €503 million (previous year: €545 million).

Year over year, free operating cash flow dropped by 67.5% to €145 million (previous year: €446 million). This was largely due to an increase in funds tied up in working capital, whereas in the prior-year period funds had been freed up from working capital, and to outflows for additions to property, plant, equipment and intangible assets.