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Performance Chemicals

Overview of Key Data
  2011 2012 Change
  € million Margin % € million Margin % %
Sales 2,130   2,203   3.4
EBITDA pre exceptionals 289 13.6 281 12.8 (2.8)
EBITDA 289 13.6 264 12.0 (8.7)
Operating result (EBIT) pre exceptionals 211 9.9 196 8.9 (7.1)
Operating result (EBIT) 211 9.9 177 8.0 (16.1)
Cash outflows for capital expenditures1) 112   135   20.5
Depreciation and amortization 78   87   11.5
Employees as of Dec. 31 5,819   6,031   3.6
1) Intangible assets and property, plant and equipment

Sales in our Performance Chemicals segment rose 3.4% in fiscal 2012, from €2,130 million to €2,203 million. The growth was mainly attributable to currency effects of 3.3% and portfolio effects of 2.5%. Volumes, by contrast, receded by 3.0%. The portfolio effects related to businesses that had been acquired for our Material Protection Products, Functional Chemicals and Rhein Chemie business units. A price effect of 0.6% contributed to the sales growth.

Nearly all the segment’s business units, but especially Rhein Chemie, raised selling prices. The exception was the Leather business unit, where prices decreased substantially in light of low prices on the chrome ore market. The segment’s volumes were below the prior-year level, with almost all business units experiencing declines. Volumes were down sharply in both absolute and percentage terms in the Rubber Chemicals and Rhein Chemie business units especially, which generate a substantial portion of their sales with automotive-related industries and were affected by weak demand from their main customer industries. Moreover, the weaker macroeconomic environment noticeably impacted the segment. The restrained demand had a tangible effect in the EMEA region (excluding Germany) and in Germany, while Latin America went against the trend to post a significant percentage gain.

EBITDA and EBITDA Margin Pre Exceptionals
Chart: EBITDA and EBITDA Margin Pre Exceptionals

EBITDA pre exceptionals for the Performance Chemicals segment receded by €8 million, or 2.8%, from the prior year to €281 million. This decline was largely attributable to higher energy and other production costs as well as slightly higher research expenditures. Higher raw material costs were passed on in full to the market at segment level. In addition, there was a slightly positive portfolio effect from the acquisitions made and the supporting effect of exchange rates. In sum, however, these were not enough to offset the higher costs. Segment earnings were also impacted by production limitations arising from an instable CO2 supply at a manufacturing facility in South Africa. On account of the effects described, the EBITDA margin pre exceptionals decreased from 13.6% to 12.8%.

The segment had exceptional items of €19 million in the reporting year, €2 million of which did not impact EBITDA. These exceptional items related mainly to restructuring expenses in the Rubber Chemicals business unit.


Key Figure Analyser