Group Performance
Robust performance in challenging markets - on a continuing basis(3), sales were up 3% and underlying PBT was flat
Actions taken to reduce costs by around £34 million p.a. (£8 million benefited 2015/16)
o Impairment and restructuring charges of £141 million, of which £38 million cash
o Charges mainly relate to previously announced restructuring in Process Technologies and review of the Fuel Cells business
Ongoing investment to support medium term growth
o R&D spend of £188 million (6% of sales) and capex of £257 million (1.8x depreciation)
Strong cash generation and balance sheet provide the resources for investment
o Working capital days (ex pms) reduced to 56 (2014/15 66) and strong free cash flow of £589 million with cash flow conversion of 82%
o Net debt (including post tax pension deficits) / EBITDA of 1.1 times
Disposal of Research Chemicals completed with profit on disposal of £130 million
ROIC at 17.3% remains well ahead of cost of capital
Special dividend of 150.0 pence paid in February 2016
Final dividend of 52.0 pence recommended, resulting in full year dividend up 5% at 71.5 pence, covered 2.5 times by underlying EPS, reflecting continued confidence in long term growth
2016/17 performance expected to be ahead of 2015/16, in line with current market expectations
