Performance Materials

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Performance Materials key data

3rd quarter 2021

3rd quarter 2022

Change

1st nine months 2021

1st nine months 2022

Change

€ million

Sales (external)

2,186

2,330

6.6

5,883

7,179

22.0

Intersegment sales¹

733

760

3.7

1,912

2,323

21.5

Sales (total)

2,919

3,090

5.9

7,795

9,502

21.9

Change in sales (external)

Volume

–6.9%

–6.2%

2.0%

–0.2%

Price

57.6%

5.2%

52.5%

15.6%

Currency

1.5%

7.6%

–2.6%

6.6%

Portfolio

0.0%

Sales by region (external)

EMLA

994

970

–2.4

2,839

3,367

18.6

565

702

24.2

1,344

1,931

43.7

APAC

627

658

4.9

1,700

1,881

10.6

EBITDA^{2, 3}

708

–92.5

1,982

1,040

–47.5

EBIT^{2, 3}

567

(107)

1,558

572

–63.3

Cash flows from operating activities³

375

227

–39.5

1,210

528

–56.4

Cash outflows for additions to property, plant, equipment and intangible assets

117

134

14.5

320

360

12.5

Free operating cash flow³

258

–64.0

890

168

–81.1

¹	In accordance with internal reporting to the Board of Management since July 1, 2022, these figures also include sales recognized in the amount of cost of goods sold. To ensure comparability, the segment data is presented on a consistent basis.
²	EBITDA and EBIT include the effect on earnings of intersegment sales.
³	The values were recalculated retroactively as of October 1, 2021, based on a change in the underlying market prices for compensation for transactions between the Performance Materials and Solutions & Specialties segments and the reference information restated accordingly.

Sales in the Performance Materials segment were up 6.6% to €2,330 million in the third quarter of 2022 (previous year: €2,186 million). Changes in exchange rates increased sales by 7.6% and a higher selling price level added 5.2% to sales. In contrast, a drop in total volumes sold – driven primarily by a downturn in demand – had a negative effect of 6.2% on sales.

Sales in the EMLA region fell by 2.4% from the prior-year quarter to €970 million (previous year: €994 million), mainly on account of a substantial drop in volumes sold. However, higher average selling prices increased sales considerably. Exchange rate movements had no notable effect on sales. In the NA region, sales were up 24.2% to €702 million (previous year: €565 million). This was mainly attributable to the change in exchange rates and a higher selling price level, both of which boosted sales significantly. The change in total volumes sold remained stable compared with the prior-year period. Sales in the APAC region were up 4.9% to €658 million (previous year: €627 million). The increase in total volumes sold and changes in exchange rates both boosted sales considerably. In contrast, changes in average selling prices had a significant negative effect on sales.

In the third quarter of 2022, the Performance Materials segment’s EBITDA was down 92.5% on the prior-year quarter, declining to €53 million (previous year: €708 million). This was mainly attributable to a decline in margins, since higher selling prices offset increased raw material and energy prices only to a small extent. This change was primarily attributable to the energy crisis, which is affecting Europe in particular. At the same time, the drop in volumes sold also had a negative effect on earnings. In contrast, lower provisions for short-term variable compensation and exchange rate movements both boosted earnings.

In the third quarter of 2022, EBIT turned negative, decreasing to €–107 million (previous year: €567 million).

Free operating cash flow in the third quarter of 2022 declined by 64.0% to €93 million (previous year: €258 million), driven in particular by the decline in EBITDA. Working capital, by contrast, had a positive effect on free operating cash flow, where cash tied up in the prior-year quarter is set against cash freed up in the current quarter.