Business Review Sales 6% below previous year at €10,736 million, mainly as a result of lower prices and volumes EBIT before special items down 17% at €835 million, primarily due to lower polyamide margins and volumes Sales to third parties in the Materials segment declined by €730 million compared with 2019 to €10,736 million. The decline was mostly attributable to the Performance Materials division, where sales decreased by €429 million year on year to €5,635 million. The Monomers division recorded a sales decrease of €301 million to €5,101 million. (XLSX:) XLS Factors influencing sales – Materials Materials Performance Materials Monomers Volumes –5% –6% –4% Prices –5% –4% –7% Portfolio 6% 5% 7% Currencies –2% –2% –2% Sales –6% –7% –6% The sales decrease was due in part to lower prices. In the Monomers division, prices levels declined for polyamides in particular due to lower raw materials prices and higher product availability on the market. Isocyanate prices also decreased. In the Performance Materials division, prices declined for engineering plastics and polyurethane systems in particular as a result of lower raw materials prices. Sales were also reduced by lower volumes in both divisions due to the effects of the coronavirus pandemic. In the Performance Materials division, volumes declined for engineering plastics, polyurethane systems and Cellasto, primarily as a result of weaker demand from the automotive industry in Europe and North America in particular. The Monomers division recorded lower volumes, especially of toluene diisocyanates (TDI) and polyamides. Currency effects had a slightly negative impact on sales. (XLSX:) XLS Segment data – Materials (Million €) 2020 2019 +/– Sales to third parties 10,736 11,466 –6% of which Performance Materials 5,635 6,064 –7% Monomers 5,101 5,402 –6% Intersegment transfers 720 849 –15% Sales including transfers 11,456 12,315 –7% Income from operations before depreciation, amortization and special items 1,714 1,719 0% Income from operations before depreciation and amortization (EBITDA) 1,556 1,691 –8% EBITDA margin % 14.5 14.7 – Depreciation and amortizationa 1,665 718 132% Income from operations (EBIT) –109 973 . Special items –944 –30 . EBIT before special items 835 1,003 –17% Return on capital employed (ROCE) % –1.1 10.7 – Assets 9,118 8,782 4% Investments including acquisitionsb 1,957 784 150% Research and development expenses 182 193 –6% a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments) b Additions to property, plant and equipment and intangible assets Sales in both divisions were positively impacted by portfolio effects from the acquisition of Solvay’s integrated polyamide business. In the Performance Materials division, sales to the automotive industry were considerably below the previous year due mainly to lower volumes. In Asia, sales volumes grew in 2020 after a weak first half of the year, driven by strong demand in China, while volumes in Europe and North America remained below the prior-year level. Sales in the consumer goods industry declined, primarily due to lower prices, while volumes were only slightly below the level of the previous year. Higher volumes in Asia, especially in the appliances segment, were able to partially offset lower sales volumes in Europe and North America. Sales also decreased considerably in the construction industry due to lower volumes and prices. Significantly higher sales volumes in Asia, especially in China, were unable to offset lower volumes in Europe and North America. Performance Materials – Sales by region Location of customer Monomers – Sales by region Location of customer Income from operations (EBIT) before special items declined by €168 million compared with the previous year to €835 million. This was attributable to a considerable decrease in the Monomers division, mainly due to lower polyamide margins and volumes. In the Performance Materials division, EBIT before special items was slightly above the prior-year level, primarily as a result of improved margins. EBIT declined by €1,082 million year on year to –€109 million. This included special charges of €944 million, mainly for impairments on property, plant and equipment in Europe due to a continued oversupply and the resulting pressure on prices and margins. Outlook for 2021 back next