HIGHLIGHTS 1ST QUARTER 2016

Q1 2016 underlying results ^[1]

• Net sales totaled € 2.9 bn, down (6)%, with average prices (2)% linked to partial pass-through of lower raw material costs in a deflationary environment. Scope changes and foreign exchange impacts on conversion decreased sales by (3)%. Volumes were stable overall, with growth in Advanced Materials and Functional Polymers offset by a drop in other segments.

• Underlying EBITDA grew 2% at € 602 m, as pricing power boosted performance by 10%, underpinned by Solvay`s excellence programs and transactional foreign exchange gains. The volume mix had a (3)% impact. The remaining (5)% is caused by the € 30 m one-off benefit recognized in the first quarter of 2015, linked to U.S. post-retirement benefits. The underlying EBITDA margin widened to 21%, up 1.4 pp.

  • Advanced Materials at € 267 m, up 1.4% yoy, as growth in healthcare, consumer goods and sustainable mobility applications more than offset the impact of ongoing inventory adjustments in the smart devices market;

  • Advanced Formulations at € 122 m, down (10)% yoy, reflecting weaker oil & gas market conditions compared to Q1 2015 when this market started to decline;

  • Performance Chemicals at € 199 m, up 7% yoy, thanks to cost efficiency gains, especially in soda ash;

  • Functional Polymers at € 65 m, up 54% yoy, driven by demand, increased net pricing and a higher contribution from RusVinyl;

  • Corporate and Business Services at € (51) m, benefiting from cost optimization programs and delivery of Cytec synergies; Q1 2015 underlying EBITDA was € (35) m, impacted by the € 30 m one-off post-retirement benefits.

• Underlying net income, Solvay share, was € 192 m, down (5)%, as a result of scope effects in discontinued operations, following the creation of Inovyn in July 2015.

• Free cash flow of € 9 m improved versus € (358) m in the first quarter of 2015, both on IFRS and underlying basis, primarily reflecting a significant reduction of seasonal working capital needs and the anticipated reduction of capital expenditure.

• Underlying net financial debt rose to € (6.8) bn from € (6.6) bn at the start of the year, following the € (138) m payment of the interim dividend to Solvay`s shareholders and other financial charges.

Q1 2016 IFRS results

• Net income, Solvay share, on an IFRS basis was € 15 m versus € (12) m in 2015 on a pro forma unaudited basis (see table on page 14), and € 140 m as reported historically^[2].

• Net financial debt, on an IFRS basis, was € (4.6) bn, excluding the perpetual hybrid bonds.

Quote of the CEO, Jean-Pierre Clamadieu

In the first quarter of the year, we delivered on our priorities. The smooth and swift integration of the former Cytec teams and businesses as part of Solvay puts us well on track to achieve our recently increased synergy targets. Our earnings grew against strong comparables in 2015, supported by a ninth straight quarter of solid pricing power which contributed to a record margin of 21%. In Advanced Materials we offset the ongoing inventory adjustments in smart devices with growth in other applications. While Advanced Formulations continued to suffer from the downturn in oil and gas, we took measures to enhance competitiveness across operating segments. Our reinforced focus on cash, including more efficient working capital management and selective capex allocation, led to a substantial improvement in cash generation and paves the way to meet our objectives for the year.