Business Review Functional Materials & Solutions segment Sales growth of 3% to €21,435 million from higher prices and volumes EBIT before special items declines 19% to €1,307 million, primarily due to lower margins and increase in fixed costs Sales to third parties in the Functional Materials & Solutions segment grew by €690 million to €21,435 million, especially in Catalysts. This was mainly attributable to higher prices in all divisions. Volumes also increased. Sales were reduced by currency effects (volumes 2%, prices 5%, portfolio 0%, currencies –4%). Income from operations (EBIT) before special items was €1,307 million, down €310 million from the 2017 figure. This was mainly driven by lower margins as a result of the increase in raw materials prices and higher fixed costs. EBIT declined by €310 million to €1,235 million in 2018. Overall, special items did not have a substantial impact. (XLS:) Download Segment data – Functional Materials & Solutions (Million €) 2018 2017 +/– 1 Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments) 2 Additions to intangible assets and property, plant and equipment Sales to third parties 21,435 20,745 3% of which Catalysts 7,469 6,658 12% Construction Chemicals 2,456 2,412 2% Coatings 3,856 3,969 (3%) Performance Materials 7,654 7,706 (1%) Intersegment transfers 837 805 4% Sales including intersegment transfers 22,272 21,550 3% Income from operations before depreciation and amortization (EBITDA) 1,917 2,251 (15%) EBITDA margin % 8.9 10.9 – Depreciation and amortization1 682 706 (3%) Income from operations (EBIT) 1,235 1,545 (20%) Special items (72) (72) − EBIT before special items 1,307 1,617 (19%) EBIT after cost of capital (512) (190) . Assets 17,654 17,364 2% Investments including acquisitions2 872 1,056 (17%) Research and development expenses 412 431 (4%) back next