Specialty Chemicals – Overview

• Full-year revenue down 11 percent due to divestments (6 percent), adverse currency effects and weaker end markets
• Full-year operating income at €297 million, adversely impacted by restructuring costs and an asset impairment of €139 million
• Implementation of comprehensive performance improvement program at Functional Chemicals on track
• Divestment of both the Primary Amides and Purate businesses completed in Q4

It was a year of continued soft demand for Specialty Chemicals, with low activity being particularly evident in construction-related products, pulp bleaching and the plastics industries. In addition to the general slowdown in demand, new plant start-ups and extended maintenance stops earlier in the year impacted production temporarily. The results include a non-cash impairment charge of €139 million on a business held for sale. Focus on cost control and margin management was maintained in all businesses, with a comprehensive performance improvement program being implemented at Functional Chemicals.

Revenue in Q4 was down 9 percent, mainly due to the Chemicals Pakistan divestment and adverse currency effects, although volumes rose 3 percent compared with Q4 2012 with higher volumes in most businesses and the absence of the previous year’s production issues.

Revenue development 2013

Revenue development Q4 2013