Solutions & Specialties

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Solutions & Specialties key data

3rd quarter 2021

3rd quarter 2022

Change

1st nine months 2021

1st nine months 2022

Change

€ million

Sales (external)

2,069

2,196

6.1

5,549

6,583

18.6

Intersegment sales¹

37.5

47.4

Sales (total)

2,077

2,207

6.3

5,568

6,611

18.7

Change in sales (external)

Volume

6.9%

–7.2%

17.5%

–5.4%

Price

29.5%

5.7%

19.7%

11.6%

Currency

1.8%

7.6%

–2.8%

6.7%

Portfolio

22.4%

0.0%

16.0%

5.7%

Sales by region (external)

EMLA

758

798

5.3

2,113

2,522

19.4

437

543

24.3

1,137

1,607

41.3

APAC

874

855

–2.2

2,299

2,454

6.7

EBITDA^{2, 3}

221

280

26.7

639

717

12.2

EBIT^{2, 3}

154

207

34.4

462

498

7.8

Cash flows from operating activities³

118

142

20.3

243

(42)

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

16.7

151

178

17.9

Free operating cash flow³

25.0

(220)

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 Solutions & Specialties segment increased by 6.1% to €2,196 million in the third quarter of 2022 (previous year: €2,069 million). This is attributable to changes in exchange rates, which increased sales by 7.6%, and a higher selling price level, which added 5.7% to sales. In contrast, total volumes sold – driven primarily by a downturn in demand – had a negative effect of 7.2% on sales.

Sales in the EMLA region were up 5.3% to €798 million (previous year: €758 million). Higher average selling prices increased sales considerably, set against a drop in volumes sold, which had a significant negative effect on sales. Exchange rate movements had no notable effect. In the NA region, sales were up 24.3% to €543 million (previous year: €437 million). This is attributable to exchange rate movements and a higher selling price level, both of which drove up sales considerably. A decline in total volumes sold had a significant negative impact on sales, in contrast. Sales in the APAC region were down by 2.2% to €855 million (previous year: €874 million). Sales were driven down considerably by a decline in average selling prices, while lower volumes sold had a slight effect. Exchange rate movements, in contrast, had a significant positive effect.

In the third quarter of 2022, EBITDA in the Solutions & Specialties segment was up 26.7% on the prior-year quarter, rising to €280 million (previous year: €221 million). Lower provisions for short-term variable compensation, the share of business development subsidies received in China attributable to the segment, and exchange rate movements were factors contributing to the increase in EBITDA. The margins remained stable at the prior year’s level, since higher selling prices offset raw material and energy prices, which had been driven up by the energy crisis in particular. In contrast, a decline in volumes sold reduced earnings.

In the third quarter of 2022, EBIT rose by 34.4% to €207 million (previous year: €154 million).

Free operating cash flow was up 25.0% to €65 million in the third quarter of 2022 (previous year: €52 million), driven in particular by the increase in EBITDA. In contrast, a year-over-year increase in cash tied up in working capital as well as cash outflows for additions to property, plant, and equipment had a negative effect on free operating cash flow.