Press Release
Embargo, February 28, 2019 at 6:00 pm
Regulated information
- The corporate Solvac S.A. 2018 net income is up 4.6% compared to 2017 (see point 3 on page 2).
The cash revenue1, including the inflow of dividends from its participation in Solvay, came to €117.1 million versus €112.1 million in 2017, namely, an increase of 4.3% attributable to the increase of Solvay dividend as shown in the table below:
| 2017 | 2018 | |
| Solvay dividend per share – January (in EUR) | 1.32 | 1.38 |
| Number of Solvay shares held by Solvac (in million) | 32.5 | 32.5 |
| Solvay dividend received in January (in million EUR) (a) | 42.9 | 44.9 |
| Solvay dividend per share – May (in EUR) | 2.13 | 2.22 |
| Number of Solvay shares held by Solvac (in million) | 32.5 | 32.5 |
| Solvay dividend received in May (in million EUR) (b) | 69.2 | 72.2 |
| Cash revenue (a) + (b) 1 (in million EUR) | 112.1 | 117.1 |
| Operating expenses (in million EUR) | -1.2 | -1.4 |
| Cost of borrowing (in million EUR) | -4.2 | -3.9 |
| Cash income 1 (in million EUR) | 106.7 | 111.8 |
Insofar as the company statutory accounts authorise, it is on the basis of cash income, after covering expenses (primarily financial charges), that the Board of Directors determines the amounts proposed for distribution by Solvac.
- The Board of Directors has prepared the Solvac consolidated financial statements at December 31, 2018. These accounts have been submitted to the Statutory Auditor. They are presented according to IFRS standards.
Consolidated income statement
| EUR million | 2017 | 2018 |
| Income from investments accounted for under the equity method | 333.8 | 270.4 |
| Operating expenses | -1.2 | -1.4 |
| Cost of borrowings | -4.2 | -3.9 |
| Net income | 328.4 | 265.1 |
| Net earnings and diluted earnings per share (EUR)2 | 15.4 | 12.4 |
1 Solvac uses certain non-IFRS performance indicators that are defined here:
- Cash revenue refers to income received during the period. It is defined as the cash flow obtained by the payment of dividends received from Solvay.
- Cash income means the cash revenue reduced by the interest charges and other income and expenses (financial/operational). It is on the basis of this indicator that the Board of Directors determines the amounts proposed for distribution by Solvac. See detail of calculation in note 15, page 17 of current press release.
2 The net income per share and the net diluted income per share are identical. The average weighted number of shares used for the calculation
per share was 21,375,033 in 2017 and in 2018.
Solvac recorded for the year end December 31, 2018 net consolidated income of €265.1 million (namely, €12.4 per share) versus €328.4 million (namely, €15.4 per share) in 2017, as a result of the change in income from applying the equity method to Solvay.
The 2018 net result of the participation calculated by the equity method is lower than in 2017, following the restructuring program announced by Solvay in March 2018, the impact of the tax evolution and the contribution of discontinued activities, reflecting the evolution of Solvay’s net result. On the contrary, the underlying result per Solvay share has increased by 16%, discontinued activities included and by 12% if only continued activities are considered.
The operating expenses increase from € 1.2 million to € 1.4 million due to a provision reversal of € 0.15 million in 2017.
- The Board of Directors reports the figures of the statutory accounts relating to Solvac SA in 2018 :
| EUR thousand | 2017 | 2018 | ||
| Financial result | 109,905 | 115.093 | ||
| Operating result | -1,236 | -1.404 | ||
| Profit before tax | 108,669 | 113.689 | ||
| Profit after tax | 108,669 | 113.688 | ||
| Gross payment to shareholders | 107,303 | 111.578 | ||
| Retained earnings | 1,366 | 2.110 |
The 2018 net income is € 113.7 million (versus € 108.7 million in 2017) attributable to the increase in dividends per share paid or decided by Solvay.
- Two interim dividend payments were made, respectively on August 24, 2018 and on December 28, 2018, the second representing in principle the balance due, which the General Shareholders Meeting will be asked to approve. In total, each share received in 2018 a gross compensation of 4.0 % compared to 2017 :
| EUR | 2017 | 2018 | |
| A first deposit | 2,88 | 3,00 | |
| A second deposit | 2,14 | 2,22 | |
| Gross dividend per share | 5.02 | 5.22 |
- The Board of Directors of Solvay decided on February 26, 2019 to pay on May 23, 2019 the balance due on the dividend for the financial year 2018, which comes to € 2.31 gross per share.
Taking into account the interim dividend of € 1.44 paid in January 2019, the gross dividend of Solvay reaches
€ 3.75 for the fiscal year 2018, up to 4.2 %.
NOTES
1. Report of the statutory auditor
Deloitte confirmed that its audit work on the consolidated financial statements of Solvac SA, in accordance with International Financial Reporting Standards as adopted by the European Union and with the legal and regulatory requirements applicable in Belgium, is substantially completed. Deloitte confirms that the financial information contained in this press release requires no comment on its part and is consistent with the consolidated financial statements of Solvac SA. The full audit report of the consolidated financial statements and the full report of the Commissioner on the audit of the annual financial information included in the annual report 2018 will be published on the internet (www.solvac.be) on April 12, 2019.
2. Content
This press release contains regulated information and is drafted in compliance with the applicable IFRS standards. The risk management analysis is included in the notes to the consolidated financial statements as well as in the annual report, which will be available on the Internet (www.solvac.be).
3. Solvac shares
| 2017 | 2018 | ||
| Number of shares issued at the end of the period | 21,375,033 | 21,375,033 | |
| Average number of shares for calculating IFRS earnings per share | 21,375,033 | 21,375,033 | |
| Average number of shares for calculating IFRS diluted earnings per share | 21,375,033 | 21,375,033 |
4. Statement by the responsible persons
M. JP. Delwart, Chairman of the Board of Directors, and M. B. de Laguiche, Managing Director of Solvac, confirm that to the best of their knowledge:
a) the annual financial statements, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, the financial position and the profit or loss of the issuer and of the undertakings included in the consolidation;
b) the management report includes a fair review of the development and performance of the business and the position of the issuer and of the undertakings included in the consolidation, together with a description of the principal risks and uncertainties that it faces;
Key dates for financial communications
• April12, 2019: Publication of the 2018 annual report on www.solvac.be
• May 14, 2019: Ordinary General Meeting of the Shareholders (2:30 pm)
• July 31, 2019: Result from the first half of 2019 and announcement of the first interim dividend for financial year 2019
• August 27, 2019: Payment of the first interim dividend for financial year 2019
• December 12, 2019: Announcement of the second interim dividend for financial year 2019
• December 27, 2019: Payment of the second interim dividend for financial year 2019
For more information, please contact:
SOLVAC S.A.
Investor Relations
Champs Elyséesstreet, 43
B - 1050 Brussels
Tel.: 32/2/639 66 30
Fax: 32/2/639 66 31
Email: Investor.relations@solvac.be
Dit persbericht is ook in het Nederlands beschikbaar - Ce communiqué de presse est également disponible en français
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