Specialty Chemicals – Overview

Full-year:

• Revenue up 2 percent due to favorable currency effects, partly offset by the divestment of the Paper Chemicals business and adverse price/mix. Overall volumes were flat
• Volumes were affected by interruptions in the manufacturing and supply chain in Rotterdam and Tianjin
• Operating income up 20 percent at €609 million due to continuous improvement programs, favorable currency effects, lower costs and incidental items
• ROS increased to 12.2 percent (2014: 10.4 percent); ROI increased to 17.2 percent (2014: 14.8 percent)

Full-year revenue was up 2 percent due to favorable currency effects, partly offset by the divestment of the Paper Chemicals business and adverse price/mix. Overall volumes were flat. Growth in some segments compensated for lower demand in oil drilling segments which mainly impacted Surface Chemistry and some segments within Functional Chemicals. Growth in China was subdued and demand remained stable in Europe.

Operating income increased by 20 percent in 2015, with significant savings from continuous improvement programs, favorable currency effects, lower costs and the positive divestment result. The divestment of Paper Chemicals was closed in Q2, with a book profit net of related costs of €31 million reported in operating income (as an incidental item).

Although the incident at the port of Tianjin, China, did not affect us directly, it did result in significant interruptions in the manufacturing and supply chain.

In Q4, revenue was down 2 percent. Volumes were flat, affected by interruptions in the manufacturing and supply chain in Rotterdam and Tianjin. Favorable currency effects were more than offset by divestments and increased price pressure. Operating income was down 2 percent.

Revenue development full-year 2015

Revenue development Q4 2015