Solvac SA: First interim gross dividend 2018 at € 3.00

1. Cash revenue ^[1], driven by dividends from the investment in Solvay amounted to € 117.1 million compared to € 112.1 million in 2017

 Solvac holds 30.71 % in Solvay as of the end of June 2018 (same as of the end of December 2017).

Provided that the statutory financial statements (see 3 below) permit it, it is based on the cash income (€ 114.3 million as of first half of 2018) after covering costs (mainly interest expenses), that the Board of Directors determines the amount of dividends proposed to be distributed by Solvac.

2. The Board of Directors approved today the consolidated financial statements of Solvac on 30 June 2018. These financial statements were subject to a limited review by the Auditor. They are presented according to IFRS standards as adopted in the European Union.

On 30 June 2018 Solvac recorded a consolidated net income of € 102 million (€ 4.8 per share) compared to € 190 million (€ 8.9 per share) for the same period in 2017, as a result of the change of Solvay's result according to the equity method.

The Investment result of € 105 million is lower than € 193 million in the same period in 2017 as a result of a restructuring program announced by Solvay in March 2018 as well as the impact of capital gains made in 2017 (mainly following the sale of Acetow).

3. The Board of Directors announces the figures of the statutory financial statements for Solvac SA (Belgian GAAP) for the first half of 2018:

Profit after taxes is € 69.3 million, up 4.4 % compared to the previous year (€ 66.4 million), following the increase of the balance of the dividend paid by Solvay.

4. In accordance with the dividend distribution policy of the company, the Board of Directors decided to set the first interim dividend at € 3.00 gross, an increase of 4.2 % compared to the first interim dividend of 2017.  This amount represents 60% of the total dividend of the previous year. 

The net interim dividend amounts to 2.10 €, after deduction of the withholding tax of 30%.

This first interim dividend will be paid on 24 August 2018.

This will lead to a gross distribution of € 64.1 million.

The Solvac shares will trade ex-dividend on Euronext Brussels, from 9 August 2018.

The second interim dividend, which will be decided by the Board, will be released on 13 December 2018 and paid on 28 December 2018.

In line with its policy of distributing virtually all the Solvay dividends and given the latter's decision to increase its dividend ex. 2017 by 4.3 %, the Board should resolve in December to bring the total dividend ex. 2018 from € 5.02 gross to € 5.22 gross per share. Such a distribution would result in an outflow of cash of € 111.6 million in 2018.

The second interim dividend should settle at € 2.22 gross per share or € 1.554 net per share.

5. Since 1 January 2013, Euronext Brussels has cancelled all VVPR strips quoted on the markets it was organizing and, in particular, the strips issued by Solvac.

Following the abolition by the program law of 27 December 2012 of the reduction of withholding tax on dividends applicable to shares with VVPR strips, the latter lost their value.  In view of the foregoing, the Solvac Board of Directors decided on 31 July 2018 to cancel the VVPR strips issued by Solvac.

Euroclear Belgium, which was keeping the register, and Euronext Brussels were duly informed of this decision.

6. Limited review opinion on financial statements

Deloitte conducted a limited review of the situation at six months ending on 30 June 2018.

Report on the review of the consolidated interim financial information of Solvac SA/NV for the six-month period ended 30 June 2018

To the board of directors

In the context of our appointment as the company's statutory auditor, we report to you on the consolidated interim financial information. This consolidated interim financial information comprises the consolidated condensedstatement of financial position as at 30 June 2018, the consolidated condensed income statement, the consolidated condensed statement of comprehensive income, the consolidated condensed statement of changes in equity and the consolidated condensed statement of cash flows for the period of six months then ended, as well as selective notes 1 to 8.

Report on the consolidated interim financial information

We have reviewed the consolidated interim financial information of Solvac SA/NV ("the company") and its subsidiaries (jointly "the group"), prepared in accordance with International Accounting Standard (IAS) 34, "Interim Financial Reporting" as adopted by the European Union.
The consolidated condensed statement of financial position shows total assets of 3.524 million EUR and the consolidated condensed income statement shows a consolidated profit (group share) for the period then ended of 102 million EUR.
The board of directors of the company is responsible for the preparation and fair presentation of the consolidated interim financial information in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review of the consolidated interim financial information in accordance with International Standard on Review Engagements (ISRE) 2410, "Review of interim financial information performed by the independent auditor of the entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit performed in accordance with the International Standards on Auditing (ISA) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the consolidated interim financial information.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information of Solvac SA/NV has not been prepared, in all material respects, in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union.

Zaventem, 31 July 2018

The statutory auditor

DELOITTE Bedrijfsrevisoren / Reviseurs d'Entreprises

BV o.v.v.e. CVBA / SC s.f.d. SCRL

Represented by Michel Denayer

 7.           Notes

Content
This press release contains regulated information and is prepared in accordance with the IAS 34 standard.
The analysis of risk management is presented in the annual report, available on the Internet (www.solvac.be). There is no change as at 30 June 2018 in the risk identification compared to 31 December 2017.

          Solvac shares

8. Statement of the persons accountable

Mr JP. Delwart, Chairman of the Board of Directors, and Mr B. de Laguiche, Managing Director of Solvac, represent that to their knowledge:

1. the condensed financial statements, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, the financial position and the results in the statutory financial statements and consolidated financial statements of Solvac;
2. the interim report includes a fair review of the important events during the first six months of the 2018 financial year and their impact on the condensed financial statements.
3. the main risks and uncertainties for the remaining months of the 2018 financial year are consistent with the assessment presented in the "Risk Management and Internal Control" section of Solvac's annual report and reflect the current economic and financial environment.
    

.9. Key financial reporting dates

• 24 August  2018: Payment of the first interim dividend for the 2018 financial year
• 13 December 2018: 6:00 pm "Second interim dividend" press release
• 28 December 2018: Payment of the second interim dividend for the 2018 financial year.

For more information, please contact:

SOLVAC S.A.
Investor Relations
Rue des Champs Elysées, 43 - 1050 Brussels
Tel.: 32/2/639 66 30
Fax: 32/2/639 66 31
Email: Investor.relations@solvac.be

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