Discontinued operations (including Specialty Chemicals)

Discontinued operations and held for sale

The results and cash flows from discontinued operations in 2018, as well as 2017, and the assets and liabilities held for sale at June 30, 2018, and December 31, 2017, almost completely relate to the Specialty Chemicals business.

The Specialty Chemicals business consists of the Specialty Chemicals Business Area and certain other assets and liabilities and income and expenses which are directly attributed to the Specialty Chemicals business from the Other activities. As from December 22, 2017, the Specialty Chemicals business is classified as held for sale and discontinued operations, therefore the consolidated statement of income for 2017 has been represented to show the results of the Specialty Chemicals business as discontinued operations.

Revenue

Revenue of discontinued operations consists of revenue of Specialty Chemicals and eliminations of intercompany revenue.

Adjusted operating income

In Q2 2018, adjusted operating income was up 50% at €252 million (2017: €168 million).

• In Specialty Chemicals, adjusted operating income was higher, mainly due to stronger price/mix effects and productivity improvements, partly offset by the impact of adverse currencies, restructuring costs and other one-off costs
• Held for sale effects/other mainly relates to the impact of ceasing depreciation and amortization, partly offset by the related impact on inventory valuation following IFRS 5 assets held for sale accounting. Total impact in Q2 2018 was €74 million.

Operating income

In Q2 2018, operating income was negatively impacted by identified items totaling €8 million relating to separation costs.