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"value": "1. CONSOLIDATED FINANCIAL STATEMENTSSolvay (the \u201cCompany\u201d) is a public limited liability company governed by Belgian law and listed on Euronext Brussels and Euronext Paris.The principal activities of the Company, its subsidiaries, joint operations, joint\ue61fventures and associates (jointly the\ue61f\u201cGroup\u201d) are described in note\ue61fF1 Revenue and Segment Information.On February\ue61f22, 2023, the Board of Directors authorized the consolidated financial statements for issuance. MAIN EVENTS AND CHANGES IN THE CONSOLIDATION SCOPESeparation planOn March 15, 2022, the Group announced its plans to separate into two independent publicly traded companies: \u00b7 Essential Co would comprise leading mono-technology businesses including Soda Ash, Peroxides, Silica and Coatis, which are reported as theCompany\u2019s Chemicals segment, as well as the Special Chem business. These businesses generated approximately \u20ac6 billion in net sales in 2022. \u00b7 Specialty Co would comprise the Company\u2019s currently reported Materials segment, including its high-growth, high-margin Specialty Polymers, its high-performance Composites business, as well as the majority of its Solutions segment, including Novecare, Technology Solutions, Aroma Performance,and Oil & Gas. These businesses combined generated approximately \u20ac8 billion in net sales in 2022. Each company would have a tailored capital structure that best supports its value creation objectives. Specialty Co would be committed to a strong investment-grade rating. The company would have full financial \ufb02exibility at the time of separation to fund its growth plan. Essential Co would maintain a prudent financial policy to support cash generation. The current investment grade rating of Solvay SA is intended to be preserved until the separation. Solvay SA is committed to offer current USD and EUR senior and hybrid bondholders the option to be transferred to Specialty Co in due time. The dividend at the outset is intended to be aligned with Solvay\u2019s current level. Under the separation plan, Solvay\u2019s shareholders would retain their current shares of Solvay stock, which will continue to be listed on Euronext Brussels and Euronext Paris. The separation would be effected by means of a partial demerger of Solvay whereby the specialty businesses will be spun off to Specialty Co. Solvay shareholders at the time of separation would receive shares in Specialty Co pro rata to their shareholding in Solvay SA. The shares of each company would be expected to be listed on Euronext Brussels and Euronext Paris. The Company expects to structure the separation in a manner that would be tax efficient for a significant majority of shareholders in key jurisdictions. The composition of the Boards and management teams, as well as naming for each company, will be provided at a later date. The transaction is subject to general market conditions and customary closing conditions, including final approval by Solvay\u2019s Board of Directors, consent of certain financing providers and shareholder approval at an extraordinary general meeting, and is expected to be completed in December 2023. The Board of Directors of Solvac, Solvay\u2019s long-standing reference shareholder, has confirmed its support of Solvay\u2019s transaction. Refer to Critical Accounting Judgments on the accounting treatment of the separation plan. Financial implication of energy price volatilityThe volatility in gas and electricity prices experienced by the Group can largely be attributed to the con\ufb02ict in Ukraine, which has impacted the financial statements of Solvay in several ways including: \u00b7 Increased non-core trading revenues (See note F3 Revenue from non-core activities). \u00b7 Substantial \ufb02uctuations in the fair value adjustments of energy-related financial assets and liabilities due to the price volatility in gas and electricity. As the fair value adjustments are on sale and purchase contracts of energy, they impact both assets and liabilities (See note F32 Financial instruments). \u00b7 Increased raw material and logistics costs (See note F2 Consolidated income statement by nature).The Group will continue to monitor the in\ufb02ationary pressure and manage the impacts on the financial statements. Portfolio management On May 4, 2022, Solvay announced the acquisition of the 20% minority stake of AGC in the Soda Ash Joint Venture operated in Green River, WY, USA, building on its leadership position in trona-based soda ash production. At a cash purchase price of US$ 120 million, this transaction will be significantly value accretive to Solvay, with a post-tax cash return on capital in excess of 15%. The transaction was completed on May 4, 2022. Senior BondsOn September 1, 2022, Solvay decided to exercise its residual maturity call option on the 2022 \u20ac-senior bonds 1.625%, ISIN BE6282459609 (outstanding of \u20ac377.5 million out of the initial amount of \u20ac750 million). The exercise was implemented in accordance with the terms and conditions of the related prospectus.On November 22, 2022, Solvay delivered a notice of early redemption in full to holders of Cytec\u2019s US$ 3.50% senior notes due 2023 guaranteed by Solvay with ISIN / CUSIP US23282AJ97 / 232820AJ9 in an outstanding principal amount of US$ 196 million. The redemption was implemented in accordance with the terms and conditions of the bonds. The redemption date was January 1, 2023, however, Solvay was discharged from its liability by the paying agent on December 30, 2022, when the paying agent received the funds.CO emission rights 2Management practices related to hedging of CO exposure were changed in the period, in view of both increased volatility in energy and CO markets 22and the plan to separate Solvay SA into two independent groups. Consequently, the Group has reconsidered the conditions of the own use exemption and accordingly the related portfolio of CO emission rights has been accounted for in accordance with the general requirements of IFRS 9 Financial 2Instruments (IFRS 9) at fair value through profit or loss, and a profit of \u20ac322 million was recognized in \u201cother operating gains and losses\u201d. As of July 1, 2022, the related portfolio of CO emission rights has been designated as hedging instruments in a cash \ufb02ow hedge relationship. (See note F4 Other 2Operating Gains and Losses and F32.B Financial Instruments)2. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS1. Basis of preparationThis information was prepared in accordance with European Regulation (EC) 1606/2002 on the application of international accounting standards dated July\ue61f19, 2002. The Group\u2019s consolidated financial statements for the year ended December\ue61f31, 2022 were prepared in accordance with IFRS\ue61f(International Financial Reporting Standards) as published by the International Accounting Standards Board (IASB), and endorsed by the European Union.The accounting standards applied in the consolidated financial statements for the year ended December\ue61f31, 2022 are consistent with those used to prepare the consolidated financial statements for the year ended December\ue61f 31, 2021. The Group has not early adopted any other standards, interpretations or amendments that have been issued but is not yet effective.Standards, interpretations and\ue61famendments applicable for the first time in 2022Below are the standards, interpretations and amendments that became effective as of January 1, 2022 and which are relevant to the Group.Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include costs that relate directly to a contract to provide goods or services including both incremental costs (e.g., the costs of direct labor and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfill the contract and costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendments to IAS 16 The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilitiesThe amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other\u2019s behalf. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.In addition to the standards, interpretations and amendments mentioned above, no other standards, interpretations, or amendments applicable for the first time in 2022 had more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time in 2023Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12 (the \u201cAmendment\u201d). In May 2021, the IASB issued the Amendment, which narrowed the scope of the initial recognition exception under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The Amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability are also recognized for all deductible and taxable temporary differences associated with leases and decommissioning obligations. The application of the Amendment is not expected to have more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time after 2023 The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group\u2019s financial statements and which may have an impact on the Group are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.On September 22, 2022, the IASB issued Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) with amendments that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. The amendments are effective for annual periods beginning on or after January 1, 2024, but are not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on the current accounting practices.On January 23, 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments were originally effective for annual reporting periods beginning on or after January 1, 2022, however, their effective date has been delayed to January 1, 2024 or later, but is not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require reclassification.2. Basis of measurement and presentationThe consolidated financial statements are presented in\ue61fmillions of euros, which is also the functional currency of the parent company.The preparation of the consolidated financial statements requires the use of estimates and assumptions that have an impact on the application of accounting policies and the measurement of amounts recognized in the consolidated financial statements. The areas for which the estimates and assumptions are material with respect to the consolidated financial statements are presented in the section\ue61fCritical accounting judgments and Key sources of estimation uncertainty.3. Principles of consolidation3.1. Consolidation scope3.1.1. GeneralThe consolidated financial statements incorporate the financial statements of the Company, and: \u00b7 entities controlled by the Company (including through its subsidiaries) and that hence qualify as subsidiaries (see 3.1.2. below); \u00b7 arrangements over which the Company (including through its subsidiaries) exercises joint control, and that qualify as joint operations (see 3.1.3. below); \u00b7 arrangements over which the Company (including through its subsidiaries) exercises joint control, and that qualify as joint ventures (see 3.1.4. below); \u00b7 entities over which the Company (including through its subsidiaries) has significant in\ufb02uence and that hence qualify as associates (see 3.1.4. below).Where necessary, adjustments are made to the financial statements of the investees so as to align their accounting policies with those of the Group.In accordance with the principle of materiality, certain companies, which are not of a significant size, have not been included in the consolidation scope. Companies are deemed not to be significant when, during two consecutive years, they do not exceed any of the three following thresholds in terms of their contribution to the Group\u2019s accounts: \u00b7 sales of \u20ac\ue61f30\ue61fmillion; \u00b7 total assets of \u20ac\ue61f15\ue61fmillion; \u00b7 headcount of 150 persons.Companies that do not meet these criteria are, nevertheless, consolidated where the Group believes that they have a\ue61fpotential for rapid development, or where they hold shares in other companies that are consolidated based on the\ue61fabove criteria.In the aggregate, the non-consolidated companies have an immaterial impact on the consolidated financial statements of the Group.The full list of companies can\ue61fbe obtained at the Company\u2019s head office.3.1.2. Investments in subsidiariesA subsidiary is an entity over which the Group has control. Control is achieved when the Group has (a) power over an investee, (b) exposure, or rights, to variable returns from its involvement with the investee, and (c) the ability to use its power over the investee to affect the amount of the investor\u2019s returns. To assess whether the Group has control, potential voting rights are taken into account. Subsidiaries are fully consolidated. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition and up to the effective date of disposal.Intra-group transactions, balances, income and expenses are eliminated on consolidation.Non-controlling interests in subsidiaries are presented separately from the Group\u2019s equity. Non-controlling interests are initially measured, either at fair value (full goodwill method), or at the non-controlling interests\u2019 proportionate share in the recognized amounts of the acquiree\u2019s identifiable net assets (proportionate goodwill method). The choice of measurement is made on an acquisition-by-acquisition basis. Subsequent to the acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests\u2019 share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.Changes in the Group\u2019s equity interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the Group\u2019s interests and the non-controlling interests are adjusted to re\ufb02ect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest, and (ii) the previous carrying amount of the assets (including goodwill) and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are accounted for (i.e. Reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities were disposed of. The fair value of any investment retained in the former subsidiary at the date when control is lost is considered to be the fair value on initial recognition for subsequent accounting in accordance with IFRS 9 or, when applicable, the cost on initial recognition of an investment in an associate or joint venture in accordance with IAS\ue61f28 Investments in Associates and Joint Ventures.3.1.3. Investments in joint operationsA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control. In its consolidated financial statements, the Group recognizes its contractual share of the joint operations\u2019 assets, liabilities, revenue and expenses, which is generally aligned with the ownership interest in the joint operations.3.1.4. Investments in associates and\ue61fjoint\ue61fventuresAn associate is an entity over which the Group has significant in\ufb02uence and that is neither a subsidiary, nor an interest in a joint arrangement. Significant in\ufb02uence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control.The results, assets and liabilities of associates and joint ventures are incorporated in the consolidated financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, on initial recognition, investments in associates and joint ventures are recognized in the consolidated statement of financial position at cost, and the carrying amount is adjusted for post-acquisition changes in the Group\u2019s share of the net assets of the associate or joint venture, less any impairment of the value of individual investments. Losses of an associate or joint venture in excess of the Group\u2019s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group\u2019s net investment in the associate or joint venture) are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.Any excess of the cost of acquisition over the Group\u2019s share of the net fair value of the identifiable assets and (contingent) liabilities of the associate or joint venture recognized at the date of acquisition is goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of that investment. Where a Group entity transacts with an associate or joint venture of the Group, profits and losses are eliminated to the extent of the Group\u2019s interest in the relevant associate or joint venture.After application of the equity method, the Group reviews its investments in associates and joint ventures for impairment. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group performs its analysis and calculates any impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss in the consolidated income statement.4. Foreign currenciesThe individual financial statements of each Group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group entity are expressed in euros (EUR), which is the presentation currency of the Group\u2019s consolidated financial statements.In preparing the financial statements of the individual entities, transactions in currencies other than the entities\u2019 functional currency are recognized at the exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the closing rate. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rate when the fair value was measured. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the date of the initial transactions.Exchange differences are recognized in profit or loss in the period in which they arise except for: \u00b7 exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occurin the foreseeable future (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income under \u201ccurrency translation differences\u201d; and \u00b7 exchange differences on transactions entered into in order to hedge certain foreign currency risks (see note F32 Financial instruments and financial risk management for hedge accounting policies). The main exchange rates used are:Year-end rate Average rate1 Euro = December 31, 2022 December 31, 2021 2022 2021Brazilian Real BRL 5.6354 6.3089 5.4391 6.3778Yuan Renminbi CNY 7.4199 7.2188 7.0781 7.6275Pound Sterling GBP 0.8870 0.8401 0.8526 0.8596Indian Rupee INR 88.3019 84.1963 82.6910 87.4271Japanese Yen JPY 140.7248 130.4077 138.0176 129.8783Korean Won KRW 1,349.6641 1,346.4377 1,357.2278 1,353.6608Mexican Peso MXN 20.8811 23.1537 21.1921 23.9889Russian Ruble RUB 77.9167 85.3452 73.7161 87.1511US Dollar USD 1.0674 1.1327 1.0531 1.18275. Government grantsGovernment grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received.Government grants relating to the purchase of property, plant and equipment are deducted from the cost of those assets. They are recognized in the consolidated statement of financial position at their expected value at the moment of initial recognition. The grant is recognized in profit or loss over the depreciation period of the underlying assets as a reduction of depreciation expense.Other government grants are recognized as income on a systematic basis over the periods in which the related costs, which they are intended to compensate, are recognized. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they become receivable.6. Climate ChangeIn preparing the consolidated financial statements, management has considered the impacts of climate change, particularly in the context of the disclosures included in the Risk Report and Extra-financial Statements and the Group\u2019s progression towards the ambitious 2030 goals to reduce scope 1 and 2 greenhouse gas emissions from our operations by 30%, an annual pace aligned with the Paris Agreement objectives, and to phase-out the use of coal for energy where renewable alternatives exist. In October 2021, the Group also published its ambitions to become carbon neutral by 2040 for all businesses except Soda Ash, which is targeted to be carbon neutral by 2050.Solvay plans to invest up to \u20ac1 billion to reach carbon neutrality by 2040 for all its businesses other than Soda Ash with an additional investment of approximately \u20ac1 billion identified for Soda Ash to pave its path towards full carbon neutrality for the Group before 2050. These investments will be partially supported by non-recourse financing and government subsidies, enabling Solvay to also continue to invest in its growth initiatives. Further studies on technology innovation will determine the future investment needs beyond 2040. Since 2015 the Group has adopted an internal carbon price and it has imputed that as an input cost into all investment decisions, irrespective of prevailing market prices. The internal cost was originally set at \u20ac25 per metric ton in 2015, and was doubled to \u20ac50 in 2019. In 2021 it was then decided to be raised to \u20ac100 per metric ton of CO with implementation in 2022. This approach ensures that all investments contribute positively to the resilience of the Group 2in the face of climate change risk and are also oriented towards achieving carbon neutrality. In addition to the strategic direction, policies and commitments, it is important to note that Solvay is taking concrete actions aligned with its climate change commitments. These are extensively developed in the Sustainability Report. As an example of the Group\u2019s commitment to phase out of coal in the Soda Ash business, several projects were initiated comprising: \u00b7 The construction of two waste-wood boilers accounted for as finance leases in Rheinberg, Germany; the first of the two boilers was commissioned in 2021.. \u00b7 In Devnya, Bulgaria, a variety of renewable sources including sun\ufb02ower husk pellets will be used to power production processes at our largest soda ash European site and reduce emissions related to energy production by 20%. \u00b7 Already equipped with a waste to energy power plant since 2006, we recently invested a further \u20ac48 million to modernize our gas cogeneration unit in Bernburg, Germany, to maintain our low CO footprint at the site. 2 \u00b7 In Italy an energy-efficient gas turbine was built at our Rosignano site. By implementing a cogeneration system that combines heat and power generation processes, we were able to keep up standard production capacity with less energy required, lowering the site\u2019s CO emissions by 40%.2 \u00b7 In Green River, Wyoming, USA, our calciners and boilers are switching from coal to gas, a readily-available local resource, which saves 280 kilotons of CO per year. This is in addition to the new project Solvay launched to deploy a new breakthrough technology that will abate greenhouse gas emissions 2originating from Trona mining operations. This will reduce the site\u2019s greenhouse gas emissions by 28% while growing its capacity. It will also make Solvay the first company to implement regenerative thermal oxidation technology to cut emissions from a trona mine. \u00b7 An equity investment at the Dombasle, France, site of which Solvay has a 10% share. The project is valued at approximately \u20ac225 million and is financed largely through non-recourse debt executed in February 2022 and government subsidies. Included in the investment are two refuse derived fuel boilers.When such investments are made, the Group verifies the useful life of the assets that are replaced and adjusts the estimated useful life if necessary. For 2022, no material revisions were needed and there is no indication that any material amounts of existing assets would be impaired as a result of the investment plans in other fuel types in the future. The Group is also actively working on sourcing its energy needs from more environmentally friendly resources including long-term renewable energy generation solutions both onsite and offsite at certain facilities. These include long-term solar and wind power purchase agreements generally accounted for as executory own use contracts. In addition, the Group has entered into long-term contracts to purchase Renewable Energy Certificates, which will cover almost one quarter of the electricity purchased and consumed in the United States. The latter are recorded in operating expenses.Management has also considered the impact of climate change in making some key estimates within the consolidated financial statements, including the execution of the Solvay One Planet strategy, which is included in the budgets, mid-term plan and long-term forecasts, which are used to: \u00b7 estimate future cash \ufb02ows used in impairment assessments of the carrying value of non-current assets (such as intangible assets and goodwill) (see Note F24 Impairment); \u00b7 estimate future profitability used in the assessment of the recoverability of deferred tax assets (see Note F7.C. Deferred taxes in the consolidated statement of financial position), provisions, etc.; \u00b7 estimate the long-term accounting assumptions, including CO emission rights and energy prices for the energy intensive Soda Ash GBU.2The Group\u2019s CO emission rights and energy prices (gas/electricity/coal) are an important element of the cost structure, especially for the Soda Ash 2business. The Group has hedged a significant portion of its expected use through 2030. The hedges were taken into consideration in the goodwill impairment test performed and the long-term assumptions considered the higher capex required by the energy transition of the business after the hedged period. Considering the significant headroom on the Soda Ash CGU, no sensitivity is provided. See Note F24 Impairment. The same exercise was done for the other cash generating units and management believes there are no realistic scenarios regarding climate change today, which would lead to an impairment of these assets. In summary, the Group\u2019s climate change considerations mentioned above did not have a material impact on the financial reporting judgments and estimates during the year. Further, the Group concludes that the climate change risk does not impact the going concern assessment for December 2022. Additional information can be found in Notes F21 Property, Plant and Equipment, F22 Right-of Use Assets and Lease Obligations and F25 Inventories.CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY1. Critical accounting judgmentsOn March 15, 2022, the Group announced its plan to separate into two independent publicly traded companies, Essential Co and Specialty Co. The separation would be effected by means of a partial demerger of Solvay whereby the specialty businesses will be spun off to Specialty Co.\ue61fWhile the Group is actively taking steps to prepare for the partial demerger and\ue61fanticipates that the transaction will be completed in December 2023, the Group considers the specialty businesses to not meet the criteria under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (IFRS 5) to be classified as discontinued operations at December 31, 2022.\ue61fThis judgment is taken on the basis that the consent of certain financing providers and the approval of the shareholders has not yet been obtained. These approvals are anticipated to occur in the course of 2023. Management will further assess the criteria at each reporting period. No other critical accounting judgments have been identified for the year ended December 31, 2022.2. Key sources of estimation uncertaintyImpairmentThe Group performs annual impairment tests on (groups of) CGUs to which goodwill has been allocated, and each time there are indicators that their carrying amount might be higher than their recoverable amount. This analysis requires management to estimate the future cash \ufb02ows expected to be generated by the CGUs and a suitable discount rate in order to calculate present value. The recoverable amount is highly sensitive to discount and growth rates. Further details are provided in note\ue61fF20 Goodwill and Business Combinations and F24 Impairment.Deferred tax assetsDeferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profits will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits.The Group has \u20ac5,203 million (2021: \u20ac6,050 million) of tax losses carried forward for which no deferred tax assets were recognized. These losses relate to subsidiaries that have a history of losses, do not expire, and may not be used to offset taxable income elsewhere in the Group. The subsidiaries do not have any taxable temporary differences that could partly support the recognition of these losses as deferred tax assets. On this basis, the Group has determined that it cannot recognize deferred tax assets on these tax losses carried forward.Further details are provided in Note F7.C. Deferred taxes in the consolidated statement of financial position and F7.D Other Information.Defined benefit obligations - GeneralThe actuarial assumptions used in determining the defined benefit obligations at December\ue61f31 as well as the annual cost can be found in note\ue61fF31.A. Provisions for employee benefits. All main employee benefits plans are assessed annually by independent actuaries. Discount rates and in\ufb02ation rates are defined centrally by management. The other assumptions (such as future salary increases and expected rates of medical care cost increases) are defined at a local level. All plans are supervised by the Group\u2019s central Human Resources department with the help of a central actuary to check the reasonableness of the results and ensure consistency in reporting. All assumptions are reviewed at each reporting date.Further details are provided in note\ue61fF31.A. Provisions for employee benefits.Environmental provisionsEnvironmental provisions are managed and coordinated jointly by the Environmental Rehabilitation department and the Finance department. In case of environmental impacts stemming from historical production activities, generally, no provision is recognized for remediation works beyond the 20 years due to the inherent high level of uncertainty as to the timing and amount.The forecasts of expenses are discounted to their present value. The discount rates fixed by geographical area correspond to the average risk-free rate on 10-year government bonds or the in\ufb02ation rate if higher. These rates are set annually by the Finance Department and can be revised based on the evolution of economic parameters of the country involved. To re\ufb02ect the passage of time, the provisions are increased each year at the discount rates described above.Further details are provided in note\ue61fF31.B. Provisions other than for employee benefits.Provisions for litigationsAny significant litigations (post M&A and other, including threat of litigation) are reviewed by Solvay\u2019s in-house lawyers with the support, when appropriate, of external counsels at least every quarter together with the Finance and Insurance Departments. This review includes an assessment of the need to recognize provisions, disclose contingent liabilities and/or contingent assets. Further details are provided in note\ue61fF31.B. Provisions other than for employee benefits and F36 Contingent assets, liabilities and financial guarantees.Leases \u2013 Identifying whether a contract includes a leaseThe Group enters into various contracts to obtain goods and services. Determining whether those contracts include a lease requires judgment. Elements that are considered include assessing whether or not there is an identified asset. To make the determination the Group considers whether or not it has the right to obtain substantially all of the economic benefit of the asset(s) throughout the period of use. Additionally, the Group assesses the extent of its decision-making rights and the existence of any substantive substitution rights. All facts and circumstances relevant to the assessment are considered and the identification of a lease is determined with the support of the departments that have the relevant knowledge, and which mainly includes the GBU management. Refer to note F22 Right-of-use assets and lease obligations for the leases that were identified by the Group and accounted for in accordance with IFRS 16 Leases.Leases \u2013 Assessment of lease termDetermining the lease term requires judgment. Elements that are considered include assessing the probability that early termination options or extension options will be exercised. All facts and circumstances relevant to the assessment are considered, and the main ones have been described in note F22 Right-of-use assets and lease obligations. Lease terms are determined with the support of the departments that have the relevant knowledge, and that mainly includes the Purchasing department, and the Facilities department.NON-IFRS (UNDERLYING) METRICSIn addition to IFRS accounts, Solvay also presents alternative performance indicators to provide a more consistent and comparable indication of the Group\u2019s underlying financial performance and financial position, as well as cash \ufb02ows. These indicators provide a balanced view of the Group\u2019s operations and are considered useful to investors, analysts and credit rating agencies as these measures provide relevant information on the Group\u2019s past or future performance, position or cash \ufb02ows. These indicators are generally used in the sector it operates in and therefore serve as a useful aid for investors to compare the Group\u2019s performance with its peers.See Glossary for definitions of adjustments (IFRS vs Underlying metrics) and Business Review for more information and reconciliation with IFRS figures.NOTES TO THE CONSOLIDATED INCOME STATEMENTPreliminary comment: consistent with the presentation in the consolidated income statement, the notes to the consolidated income statement as presented hereafter do not include the consolidated income statement impacts from discontinued operations that are presented on a separate line. Those are disclosed in note F8 Discontinued operations. NOTE F1 REVENUE AND SEGMENT INFORMATIONAccounting policyIFRS 15 establishes a five-step model to account for revenue arising from contracts with customers: \u00b7 Identify the contract, \u00b7 Identify the performance obligations, \u00b7 Determine the transaction price, \u00b7 Allocate the transaction price to the performance obligations in the contract, and \u00b7 Recognize revenue when or as the Group satisfies a performance obligation.Under IFRS 15, revenue is recognized at an amount that re\ufb02ects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Sale of goods: Contracts can be short term (including based only on a purchase order) or long term, some have minimum off-take requirements. As the Group is in the business of selling advanced materials and specialty chemicals, contracts with customers generally concern the sale of goods. As a result, revenue recognition generally occurs at a point in time when control of the chemicals is transferred to the customer, generally on delivery of the goods.Distinct elements: a good or service that is promised to a customer is distinct if both of the following criteria are met: (a) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e. The good or service is capable of being distinct); and (b) the Group\u2019s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e. The promise to transfer the good or service is distinct within the context of the contract).The revenue of the Group consists mainly of sales of chemicals, which qualify as separate performance obligations. Value-added services \u2013 mainly customer assistance services \u2013 corresponding to Solvay\u2019s know-how are rendered predominantly over the period that the corresponding goods are sold to the customer. Variable consideration: some contracts with customers provide trade discounts or volume rebates. Trade discounts and volume rebates give rise to variable consideration under IFRS 15, and are required to be estimated at contract inception and subsequently at each reporting date. IFRS 15 requires the estimated variable consideration to be constrained to prevent overstatement of revenue. Moment of recognition of revenue: revenue is recognized when (or as) the Group satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Substantially all revenue stems from performance obligations satisfied at a point in time, i.e. The sale of goods. Revenue recognition for those takes into account the following: \u00b7 The Group has a present right to payment for the asset; \u00b7 The customer has legal title to the asset; \u00b7 The Group has transferred physical possession of the asset; \u00b7 The customer has the significant risks and rewards of ownership of the asset (in this respect, incoterms are considered); and \u00b7 The customer has accepted the asset.Products sold to customers generally cannot be returned, other than for performance deficiencies. Customer acceptance clauses are in many cases a formality that would not affect the Group\u2019s determination of when the customer has obtained control of the goods. Revenue from services is recognized in the period those services have been rendered.The Group sells its chemicals to its customers, (a) directly, (b) through distributors, and (c) with the assistance of agents. When the Group delivers a product to distributors for sale to end customers, the Group evaluates whether that distributor has obtained control of the product at that point in time. No revenue is recognized upon delivery of a product to a customer or distributor if the delivered product is held on consignment. Indicators of consignment inventory include: \u00b7 The product is controlled by the Group until a specified event occurs, such as the sale of the product to a customer of the distributor or until a specified period expires; \u00b7 The Group is able to require the return of the product or transfer the product to a third party (such as another distributor); and \u00b7 The distributor does not have an unconditional obligation to pay for the product (although he might be required to pay a deposit). \u00b7 Agents facilitate sales and do not purchase and resell the goods to the end customer. Warranties: warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Substantially all warranties do not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications, and are hence accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Licensing: In case of performance obligations relation to licensing intellectual property (IP), the Group assesses if it grants a right to access the IP as it exists throughout the license period or a right to use the IP as it exists at the point in time at which the license is granted. If the performance obligation is to grant a right to access, then the related revenue is recognized over the license period; otherwise, it is recognized at a point in time, i.e. when the license period starts or when the customer starts using the IP. The Group assesses if the license provided can be considered as being distinct in the context of the contract. If not, the license will have to be bundled with other goods or services provided in the contract. Currently the Group grants a right to use IP, which means that revenue recognition occurs at a point in time.An Operating Segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity\u2019s chief operating decision maker and for which discrete financial information is available. Solvay\u2019s chief operating decision maker is the Chief Executive Officer.GeneralSolvay is organized into four Operating Segments: \u00b7 Materials offer a unique portfolio of high-performance polymers and composite technologies used primarily in sustainable mobility applications. Its solutions enable weight reduction and enhance performance while improving CO and energy efficiency. Major markets served include next-2generation mobility in automotive and aerospace, healthcare and electronics. \u00b7 Chemicals host chemical intermediate businesses focused on mature and resilient markets. Solvay is a world leader in soda ash and peroxides and major markets served include building and construction, consumer goods and food. Its Silica, Coatis and Rusvinyl businesses are also high quality assets with strong positions in their markets. \u00b7 Solutions offer a unique formulation & application expertise through customized specialty formulations for surface chemistry & liquid behavior, maximizing yield and efficiency of the processes they are used in while minimizing the eco-impact. Novecare, Technology Solutions, Aroma, Special Chem and Oil & Gas focus on specific areas such as resources (improving the extraction yield of metals, minerals and oil), industrial applications (such as coatings) or consumer goods and healthcare (including vanillin and guar for home and personal care). \u00b7 Corporate & Business Services includes corporate and other business services, such as Group research & innovation or energy services, whose mission is to optimize energy consumption and reduce CO emissions.2External net sales by cluster The Oil & Gas GBU was created on July 1, 2021, regrouping activities that were previously included in Novecare and Technology Solutions. The following table presents restated figures for these GBUs since the beginning of 2021.In \u20ac million 2022 2021Materials 4,075 2,903Specialty Polymers 3,121 2,173Composite Materials 954 730Chemicals 4,496 3,357Soda Ash & Derivatives 2,221 1,509Peroxides 773 636Silica 631 467Coatis 870 745Solutions 4,846 3,838Novecare 1,905 1,547Special Chem 1,040 840Technology Solutions 740 560Aroma Performance 575 473Oil and Gas 586 418Corporate & Business Services 9 7CBS and NBD 9 7Total 13,426 10,105There are no individual customers that contribute 10% or more to the Group\u2019s revenue or any individual segment\u2019s revenue in either 2022 or 2021.Sales by marketSales by market are presented in the Business Review, see note B1. Net sales by country and region The sales disclosed below are allocated based on the customers\u2019 location.In \u20ac million 2022 % 2021 %Belgium 230 2% 170 2%Germany 940 7% 737 7%Italy 546 4% 431 4%France 479 4% 363 4%Netherlands 104 1% 88 1%Spain 191 1% 144 1%European Union - Other 706 5% 491 5%European Union 3,198 24% 2,423 24%Europe - Other 431 3% 352 3%United States 3,362 24% 2,496 25%Canada 170 2% 134 1%North America 3,532 26% 2,630 26%Brazil 1,156 9% 813 8%Mexico 288 2% 215 2%Latin America - Other 421 3% 280 3%Latin America 1,865 14% 1,308 13%Australia 121 1% 90 1%China 1,533 11% 1,203 12%Hong Kong 65 0% 42 0%India 272 2% 240 2%Indonesia 165 1% 115 1%Japan 460 3% 340 3%Russia 14 0% 66 1%Saudi Arabia 134 1% 128 1%South Korea 367 3% 301 3%Thailand 214 2% 175 2%Turkey 97 1% 74 1%Other 958 7% 617 6%Asia and rest of the world 4,400 33% 3,391 34%Total 13,426 100% 10,105 100%2022 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesIncome statement items\ue61f \ue61f \ue61f \ue61f \ue61fNet sales (including inter-segment sales) 4,078 4,552 4,857 9 13,496 - Inter-segment sales -3 -56 -10 0 -70Net sales 4,075 4,496 4,846 9 13,426Revenue from non-core activities 109 948 42 1,546 2,645Gross margin 1,561 1,085 1,303 80 4,029Depreciation and amortization 363 261 207 93 923Earnings from associates and joint ventures 9 153 7 2 171Underlying EBITDA(1) 1,290 1,188 944 -194 3,229EBIT 0 0 0 0 2,221Net financial charges \ue61f \ue61f \ue61f \ue61f -70Income taxes \ue61f \ue61f \ue61f \ue61f -217Profit for the year from discontinued operations \ue61f \ue61f \ue61f \ue61f 0Profit/(loss) for the year \ue61f \ue61f \ue61f \ue61f 1,934December 31, 2022 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesStatement of financial position and other items \ue61f \ue61f \ue61f \ue61f \ue61fCapital expenditures 400 284 242 96 1,022Investments 0 2 0 12 15Working capital \ue61d \ue61d \ue61d \ue61d \ue61dInventories 853 541 693 21 2,108Trade receivables 513 677 607 229 2,026Trade payables 510 757 514 515 2,296(1) Underlying EBITDA is a key performance indicator followed by management and includes other elements than those presented above (see Business Review section for reconciliation of Underlying with IFRS figures).2021 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesIncome statement items\ue61f \ue61f \ue61f \ue61f \ue61fNet sales (including inter-segment sales) 2,912 3,395 3,844 7 10,157 Inter-segment sales -9 -38 -6 0 -53Net sales 2,903 3,357 3,838 7 10,105Revenue from non-core activities 19 433 30 848 1,330Gross margin 1,102 838 986 0 2,926Depreciation and amortization 313 174 266 95 848Earnings from associates and joint ventures 8 141 7 2 158Underlying EBITDA(1) 879 1,009 701 -232 2,356EBIT 1,190Net financial charges \ue61f \ue61f \ue61f \ue61f -96Income taxes \ue61f \ue61f \ue61f \ue61f -110Profit for the year from discontinued operations \ue61f \ue61f \ue61f \ue61f 5Profit/(loss) for the year \ue61f \ue61f \ue61f \ue61f 989December 31, 2021 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesStatement of financial position and other items \ue61f \ue61f \ue61f \ue61f \ue61fCapital expenditures 250 212 172 101 736Investments 1 1 32 11 44Working capital \ue61d \ue61d \ue61d \ue61d \ue61dInventories 684 425 607 28 1,745Trade receivables 382 563 577 283 1,805Trade payables 379 676 515 560 2,131(1) Underlying EBITDA is a key performance indicator followed by management and includes other elements than those presented above (see Business Review section for reconciliation of Underlying with IFRS figures).NON-CURRENT ASSETS, CAPITAL EXPENDITURES AND INVESTMENTS BY COUNTRY AND REGION In \u20ac million Non-current assets Capital expenditures and investmentsDecember 31, 2022 % December 31, 2021 % 2022 % 2021 %Belgium 288 2% 272 2% -32 3% -22 3%Germany 438 4% 400 3% -55 5% -44 6%Italy 655 5% 626 5% -125 12% -111 14%France 2,876 24% 2,764 24% -242 23% -178 23%Spain 130 1% 134 1% -13 1% -16 2%European Union - Other 314 3% 319 3% -37 4% -39 5%European Union 4,702 38% 4,516 39% -504 49% -409 52%Europe - Other 150 1% 159 1% -20 2% -17 2%United States 5,273 43% 5,047 43% -348 34% -201 26%Canada 175 1% 177 2% -12 1% -7 1%North America 5,448 45% 5,225 45% -360 35% -208 27%Brazil 277 2% 218 2% -34 3% -27 3%Latin America - Other 22 0% 19 0% -5 1% -5 1%Latin America 299 2% 238 2% -39 4% -32 4%Russia 432 4% 293 3% 0 0% 0 0%Thailand 91 1% 99 1% -5 0% -5 1%China 588 5% 598 5% -79 8% -90 12%South Korea 73 1% 77 1% -7 1% -4 1%India 233 2% 240 2% -8 1% -5 1%Singapore 3 0% 36 0% -3 0% -3 0%Japan 19 0% 18 0% -3 0% -3 0%Other 186 2% 185 2% -6 1% -3 0%Asia and rest of the world 1,624 13% 1,547 13% -112 11% -113 15%Total 12,223 100% 11,684 100% -1,036 100% -779 100%Non-current assets are those other than deferred tax assets, loans and other assets, and other financial instruments. Capital expenditures and investments include acquisitions of property, plant and equipment, right-of-use assets, intangible assets and investments in subsidiaries and other investments (joint operations, joint ventures and associates). Both exclude discontinued operations. NOTE\ue61fF2 CONSOLIDATED INCOME STATEMENT BY NATUREIn \u20ac million Notes 2022 2021Net sales (F1) 13,426 10,105Revenue from non-core activities (F3) 2,645 1,330Raw materials, utilities and consumables used \ue61d -8,578 -5,910Changes in inventories \ue61d 300 424Personnel expenses \ue61d -2,262 -2,002Wages and direct social benefits \ue61d -1,689 -1,469Employer's contribution for social insurance \ue61d -399 -286Pensions and insurance benefits \ue61d -121 -98Other personnel expenses \ue61d -54 -148Amortization, depreciation and impairment (F11) -923 -849Other variable logistics expenses \ue61d -1,057 -776Other fixed expenses \ue61d -1,161 -1,017Addition and reversal of provisions (excluding employee benefit provisions) (F31) -257 -323Significant income related to prior years (F4)\ue61d 0 97M&A costs and gains and losses on disposals (F5) -83 -47Earnings from associates and joint ventures (F23) 171 158EBIT \ue61f 2,221 1,190In 2022 the Italian government provided approximately \u20ac78 million in indirect tax credits to minimize the impact of escalating energy costs on the Group. The indirect tax credits are intended to compensate up to a maximum of 40% of energy-related costs if such costs increased by 30% or more when compared to prior years. The tax credits were accounted for in accordance with IAS 20 Government Grants and recognized as a reduction of energy costs in the consolidated income statement.\ue61f The majority of the credits were received in Q4, 2022.M&A costs and gains and losses on disposals for 2021 exclude a portion of PIS/COFINs (see note F4 Other operating gains and losses).NOTE\ue61fF3 REVENUE FROM NON-CORE ACTIVITIESThis revenue primarily comprises commodity and utility third party transactions, non-core licensing transactions, and other revenue, considered to not correspond to Solvay\u2019s core business. The increase compared to 2021 is mainly related to higher gas and electricity prices.NOTE\ue61fF4 OTHER OPERATING GAINS AND LOSSESIn \u20ac million 2022 2021Start-up and preliminary study costs -24 -11Capital gains/losses on sales of property, plant and equipment and intangible assets 5 12Net foreign exchange gains and losses 0 1Amortization of intangible assets resulting from PPA -146 -147PIS/COFINs credits recognition \ue61f 61Gain on CO2 hedge management 322 \ue61fOther 13 5Other operating gains and losses 171 -80In 2022, the gain of \u20ac322 million relates to the change in accounting treatment of the entire portfolio of CO emission rights following the reconsideration 2of the IFRS 9 own use exemption (see note F32.B).A Supreme Court ruling in Brazil issued in August 2021 conferred the right to recover Federal indirect tax on sales, so-called \u201cPIS/COFINs\u201d, to a number of companies, including Solvay. As a result of that ruling, a total gain of \u20ac97 million related to operations from 2003 to the present date was quantified and assessed as recoverable before tax of \u20ac(26) million. Of that, \u20ac36 million were recognized under \u201cResults from portfolio management and major restructuring\u201d mainly as the relevant period pre-dated the Groups\u2019 acquisition of Rhodia in August 2011 (see note F5 Results from Portfolio Management and Major Restructurings, Legacy Remediation and Major Litigations \u2013 included in line \u201cM&A costs and gains and losses on disposals\u201d).\ue61f The remaining \u20ac61 million were recorded as \"Other operating gains & losses\" as the period related to operations subsequent to August 2011 and still in Solvay\u2019s perimeter. This amount has been substantially recovered mainly through the offset of income tax payments in 2022.NOTE\ue61fF5 RESULTS FROM PORTFOLIO MANAGEMENT AND MAJOR RESTRUCTURINGS, LEGACY REMEDIATION AND MAJOR LITIGATIONSAccounting policyResults from portfolio management and major restructurings include: \u00b7 gains and losses on the sale of subsidiaries, joint operations, joint ventures, and associates that do not qualify as discontinued operations; \u00b7 acquisition costs of new businesses; \u00b7 one-off operating costs related to internal management of portfolio (carve-out of major lines of businesses); \u00b7 gains and losses on the sale of real estate not directly linked to an operating activity; \u00b7 restructuring charges driven by portfolio management and by major reorganizations of business activities, including impairment losses resulting from the shutdown of an activity or a plant; \u00b7 impairment losses (reversals) resulting from testing of CGUs. Results from legacy remediation and major litigations include: \u00b7 the remediation costs not generated by on-going production facilities (shut-down of sites, discontinued productions, previous years\u2019 pollution); and \u00b7 the impact of significant litigations.RESULTS FROM PORTFOLIO MANAGEMENT AND MAJOR RESTRUCTURINGIn \u20ac million 2022 2021Restructuring costs and impairment -23 -122Impairment 16 58Restructuring costs -39 -181M&A costs and gains and losses on disposals -83 -11Results from portfolio management and major restructuring -105 -133In 2022, impairment includes the reversal of impairment losses in the Special Chem CGU for Fluor Gases in Europe for \u20ac37 million, impairment losses of other non-performing assets for \u20ac(9) million and impairment losses on other investments for \u20ac(11) million. The 2022 increase in M&A costs is mainly explained by the costs incurred for the ongoing separation plan of the Solvay Group. For the movement in restructuring and remediation costs please refer to the note F31.B. Provisions other than for employee benefits.In 2021, restructuring costs relate mainly to the new simplification program of the support functions for \u20ac157 million. The impairments include the impairment reversal of the joint venture Rusvinyl for \u20ac66 million and impairment losses of other non-performing assets for \u20ac(8) million. In 2021, the M&A costs and gains and losses on disposals include a \u20ac36 million gain related to PIS/COFINs (see note F4 Other operating gains and losses).RESULTS FROM LEGACY REMEDIATION AND MAJOR LITIGATIONSIn \u20ac million 2022 2021Major litigations -100 -26Remediation costs and other costs related to non-ongoing activities -183 -97Results from legacy remediation and major litigations -283 -123For the movement in litigation costs please refer to the note F31.B. Provisions other than for employee benefits.In 2022 remediation costs increased versus last year mainly due to a \u20ac93 million provision recorded in Q3, 2022 related to per- and poly\ufb02uoroalkyl substances (PFAS). See note F31.B Provisions other than for employee benefits. NOTE\ue61fF6 NET FINANCIAL CHARGESAccounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.In \u20ac million 2022 2021Cost of borrowings -96 -89Interest expense on lease liabilities -21 -19Interest on loans and short term deposits 17 9Other gains and losses on net indebtedness 3 -4Net cost of borrowings -98 -103Cost of discounting provisions -19 -47Impact of change of discount rate on provisions 59 48Result from equity instruments measured at fair value -13 6Net financial charges -70 -96Details are included in note\ue61fF33 Net indebtedness.The net cost of borrowings variance is mainly explained by:Higher cost of borrowings:\ue61f \u00b7 \u20ac(11) million related to a fee to implement\ue61fcommitted fully undrawn credit facilities of \u20ac2.9 billion as a back-up facility to ensure potential liquidity needs in the context of the separation plan.\ue61f \u00b7 \u20ac(4) million due to the foreign exchange conversion effect of the cost of borrowings in USD transaction currency.\ue61f \u00b7 \u20ac8 million savings related to the continuing efforts to repay debt, including the early repayment of \u20ac\ue61f377.5 million on the \u20ac\ue61f750 million senior bond in September 2022.\ue61f\ue61f\ue61fHigher interest income on loans and deposits (higher volumes and an increase in interest rates). Other gains and losses on net indebtedness from \u20ac(4) million for 2021 to \u20ac3 million for 2022, largely attributable to currency swaps (interest element). In 2021, the loss of \u20ac(4) million was mainly linked to \u20ac\ue61f(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The cost of discounting provisions relates to post-employment benefits (\u20ac(2) million) and to environmental provisions (\u20ac(17) million) and its decrease is largely attributable to the evolution of the applicable discount rates (see also note F31 Provisions). NOTE\ue61fF7INCOME TAXES IN THE INCOME STATEMENT AND THE STATEMENT OF FINANCIAL POSITIONAccounting policyCurrent taxesThe current tax payable is based on taxable profit of the year. Taxable profit differs from profit as reported in the consolidated income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group\u2019s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.Deferred taxesDeferred taxes are recognized for temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax bases used in the computation of taxable profit.Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.Deferred tax liabilities are generally recognized for all taxable temporary differences. No deferred tax liabilities are recognized following the initial recognition of goodwill. In addition, no deferred tax assets or liabilities are recognized with respect to the initial recognition of an asset or liability in a transaction which is not a business combination and affects neither accounting profit nor taxable profit.Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, joint operations, joint ventures, and associates, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets other than tax loss carryforwards are analyzed on a case by case basis, taking into account all relevant facts and circumstances. For example, a zero taxable profit, after deducting the amounts paid to retirees under a defined benefit plan and for which a deductible temporary difference existed, can justify the recognition of the underlying deferred tax assets. Recognition of deferred tax assets for tax loss carryforwards requires a positive taxable profit during the year that enables the utilization of tax losses that originated in the past. Because of uncertainties inherent to predicting such positive taxable profit, recognition of deferred tax assets from tax loss carryforwards is based on a case by case analysis, which is usually based on five-year profit forecasts, except with respect to any financial company for which ten-year financial profit forecasts are considered highly predictable and are consequently used. The corporate tax reporting team, which monitors the Group deferred tax positions, is involved in assessing deferred tax assets.Further details are provided in note\ue61fF7.C.Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets re\ufb02ects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amounts and when the Group intends to settle its current tax assets and liabilities on a net basis.Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.Current and deferred taxes for the periodCurrent and deferred taxes for the period are recognized as an expense or income in profit or loss, except when they relate to items that are recognized outside profit or loss (whether in other comprehensive income or directly in equity), in which case the tax is also recognized outside profit or loss, or when they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in the accounting for the business combination.Exception to the above, as from January 1, 2019, the Group applies the amendments to IAS 12, that apply to the income tax consequences of dividends recognized on or after the beginning of the earliest comparative period, i.e. January 1, 2018. In 2018, the income tax consequences of the coupons on perpetual hybrid bonds classified as equity were recognized in equity. As a result of the adoption of the amendment, those income tax consequences are now recognized in profit or loss.F7.A. Income taxesThe income taxes (net expense) recognized in the consolidated income statement increased by \u20ac(107) million in 2022 compared to 2021. The income taxes (net expense) recognized in other comprehensive income decreased by \u20ac10 million in 2022 compared to 2021, mainly due to the movement in employee benefit provisions (see note F31.A Provisions for employee benefits).In \u20ac million 2022 2021Current taxes related to current year -360 -236Provisions for tax litigations 21 -1Other current taxes related to prior years (a) -18 0Current taxes -357 -237Changes in unrecognized deferred tax assets (b) 177 127Deferred tax income on amortization of PPA step-ups 35 37Deferred tax impact of changes in the nominal tax rates 0 -2Deferred taxes related to prior years (a) 38 3Changes in deferred tax assets O&G US (c) 105 15Other deferred taxes (d) -214 -52Deferred taxes 141 127Income taxes recognized in the consolidated income statement -217 -110Income taxes on items recognized in other comprehensive income -66 -77The current taxes (net expense) related to the current year increased by \u20ac(121) million due to higher taxable profits in countries with high effective tax rates slightly offset by the reversal of provisions for tax litigation in Spain and in the US.(a) The current and deferred taxes related to prior years (\u20ac20 million) derive mainly from the changes in deferred taxes (primarily on foreign income book to tax basis) in the United States (\u20ac21 million). (b) In 2022, the change in unrecognized deferred tax assets amounts to \u20ac177 million resulting mainly from a revision of the forecasts of utilization of tax losses carried forward in the holding companies (\u20ac170 million). (c) The deferred tax assets on the goodwill and other tangible and intangible assets for Oil & Gas in the United States were written-down in the US tax unit in 2020. Based on a reassessment of recoverability of these deferred tax assets at the end of 2022, the write-down of the deferred tax assets was reversed (\u20ac15 million in 2021 and \u20ac105 million in 2022).(d) Other deferred taxes:In 2022, the other deferred income taxes (\u20ac(214) million) included: \u00b7 The utilization of tax losses carried forward for \u20ac(109) million; \u00b7 The tax impact of the recognition of the CO forward purchase contracts for \u20ac(75) million (see note F32 Financial instruments and Financial risk 2management); \u00b7 The use of deferred taxes related to the Brazilian PIS/COFINs credits recognized in 2021 for \u20ac20 million; \u00b7 Other net increases and reversals of other temporary differences for \u20ac(50) million of which \u20ac(32) million in provisions other than employee benefits.Developments in International TaxationThe Organization for Economic Co-operation and Development (OECD) initiative to combat base erosion and profit shifting (BEPS) has led to the development of a number of measures which countries plan to introduce. These include the Pillar Two initiative, focused on the introduction of a global minimum corporate tax rate, with the possibility of top-up taxes being introduced in cases where jurisdictions do not comply with the minimum tax rate. The Group is currently assessing the accounting implications and the jurisdictions that could give rise to additional taxation as a result of the implementation of the Pillar 2 Model Rules in national laws, which is not expected to be material for the Group.F7.B. Reconciliation of the income tax expenseThe effective income tax expense has been reconciled with the theoretical tax expense obtained by applying to the pre-tax profit of each Group entity the nominal tax rate prevailing in the country in which it operates.In \u20ac million 2022 2021Profit/(Loss) for the year before taxes 2,151 1,094Earnings from associates and joint ventures 171 158Profit/(Loss) for the year before taxes excluding earnings from associates and joint ventures 1,980 936Reconciliation of the tax income/(expense) \ue61f Total tax income/(expense) of the Group entities computed on the basis of the respective local nominal rates -546 -284Weighted average nominal rate 28% 30%Tax effect of changes in nominal tax rates 0 -2Changes in unrecognized deferred tax assets 177 127Tax effect of permanent differences 26 37Gain and losses with no tax expense and income 6 10US taxes disconnected from profit for the year before taxes -15 -9Changes in deferred tax assets O&G US 105 15Provisions for tax litigations 21 -1Other tax effect of current and deferred tax adjustments related to prior years 19 3Tax effect on distribution of dividends -8 -6Effective tax income/(expense) -217 -110Effective tax rate 10% 10%The weighted average nominal rate slightly decreased from 2021 (30%) to 2022 (28%) mainly due to the decrease of the withholding taxes on dividends. The high nominal tax rate is mainly due to elevated earnings in countries with higher nominal tax rates (e.g. Brazil, Italy).F7.C. Deferred taxes in the consolidated statement of financial position2022 - In \u20ac million Opening Recognized Recognized Exchange Other Other Closing balancein income in other com-rate acquisition balancestatementprehensive effect/ disposalincomeTemporary differencesEmployee benefits obligations 289 7 -68 5 \ue61f 1 234Provisions other than employee benefits 208 -42 \ue61f 9 0 0 175Property, plant and equipment -225 7 \ue61f -15 0 -1 -234Intangible assets -274 96 \ue61f -17 0 \ue61f -196Right-of-use assets -74 -4 \ue61f -2 0 0 -81Lease liabilities 75 4 \ue61f 3 \ue61f 0 82Goodwill 3 56 \ue61f -1 \ue61f \ue61f 58Other temporary differences 20 -84 1 -3 0 0 -66Tax losses 263 109 \ue61f 3 0 \ue61f 375Tax credits 33 -7 \ue61f 1 \ue61f \ue61f 27Total (net amount) 318 141 -66 -18 0 0 3742021 - In \u20ac million Opening Recognized Recognized Exchange Other Transfer Closing balancein income in other com-rate effectacquisition to assets balancestatementprehensive / disposalheld for incomesaleTemporary differencesEmployee benefits obligations 403 -12 -104 2 -5 5 289Provisions other than employee benefits 204 -4 6 -1 2 208Property, plant and equipment -262 27 32 -19 2 -5 -225-311 65 -24 -4 -274Intangible assetsRight-of-use assets -74 4 -3 1 -2 -74Lease liabilities 76 -4 3 -1 1 75Goodwill 3 3Other temporary differences 26 -4 -4 2 20Tax losses 209 50 5 -3 3 263Tax credits 27 5 1 33Total (net amount) 301 127 -77 -27 -10 3 318The significant components of the deferred tax assets and deferred tax liabilities at the end of 2022 and 2021 are as follows:In \u20ac million 2022Deferred tax Deferred tax Net deferred Write-down of Net deferred assetsliabilitiestaxes before deferred tax taxeswrite-downassets (unrecog-nized portion)Employee benefits obligations 328 -94 234 0 234Provisions other than employee benefits 241 -66 174 1 175Property, plant and equipment 69 -275 -207 -28 -234Intangible assets 261 -381 -120 -76 -196Right-of-use assets 0 -82 -81 0 -81Lease liabilities 80 2 82 0 82Goodwill 58 0 58 0 58Other 175 -238 -63 -3 -66Temporary differences 1,211 -1,133 76 -105 -29Operational losses 1,479 0 1,479 -1,187 292Non-operational losses 308 0 308 -225 83Tax losses 1,787 0 1,787 -1,412 375Tax credits carried forward 81 1 81 -55 27Netting deferred taxes -575 575 0 0 0Deferred taxes 2,504 -557 1,945 -1,572 374In \u20ac million 2021Deferred tax Deferred tax Net deferred Write-down of Net deferred assetsliabilitiestaxes before deferred tax taxeswrite-downassets (unrecog-nized portion)Employee benefits obligations 413 -123 290 -1 289 Provisions other than employee benefits 244 -38 206 1 208 Property, plant and equipment 118 -314 -195 -30 -225Intangible assets 107 -385 -277 3 -274Right-of-use assets 0 -74 -74 -74Lease liabilities 77 -1 75 75 Goodwill 3 3 3 Other 105 -78 27 -7 20 Temporary differences 1,068 -1,012 56 -34 22 Operational losses 1,566 1,566 -1,398 169 Non-operational losses 331 331 -237 95 Tax losses 1,898 1,898 -1,635 263 Tax credits carried forward 78 78 -45 33 Netting deferred taxes -551 551 Deferred taxes 2,492 -461 2,031 -1,713 318 The total offset deferred taxes of \u20ac374 million at year-end 2022 are \u20ac56 million higher than in 2021. The main changes in 2022 are related to the following items: \u00b7 deferred tax assets on employee benefit obligations: \u20ac234 million at year-end 2022 - \u20ac55 million lower than in 2021, explained by the decrease of post-employment benefits obligations following an increase of the discount rates; \u00b7 deferred tax liabilities on provisions other than employee benefits: \u20ac176 million at year-end 2022 - \u20ac32 million lower than in 2021; \u00b7 deferred tax liabilities on intangible assets: \u20ac(196) million at year-end 2022 - \u20ac78 million lower than in 2021. The decrease in these liabilities in 2022 mainly re\ufb02ects: - exchange rate impacts of \u20ac(18) million; - the tax impact of \u20ac35 million of amortization in the consolidated income statement of the step-up of intangible assets resulting from Purchase Price Allocation; - the reversal of the write-off of the deferred taxes on intangible assets for Oil & Gas in the United States for \u20ac49 million. \u00b7 deferred tax liabilities on goodwill: \u20ac58 million at year-end 2022 - \u20ac55 million higher than in 2021 due to the reversal of the write-off of the deferred taxes on goodwill for Oil & Gas in the United States; \u00b7 deferred taxes on operational and non-operational tax losses: \u20ac374 million at year-end 2022 - \u20ac112 million higher than in 2021 mainly due to: - the revision of the forecasts of utilization of tax losses carried forward in the holding companies (\u20ac170 million); - the newly created or utilized deferred tax on tax losses for \u20ac(109) million; - the recognition of deferred tax assets on losses up to \u20ac45 million in Luxembourg considering an increase of the taxable temporary differences in the same Tax Group. \u00b7 deferred tax assets on other temporary differences: \u20ac(66) million at year-end 2022 - \u20ac86 million lower than in 2021 mainly due to the recognition of the CO emission rights contracts for \u20ac(75) million and the taxable temporary differences in Luxembourg for \u20ac(45) million offset by the use of deferred taxes 2related to the Brazilian PIS/COFINs credits recognized in 2021 for \u20ac20 million and the changes in deferred taxes (mainly on foreign income book to tax basis) in the United States for \u20ac21 million. At year-end 2022, \u20ac(56) million for deferred tax liabilities on unremitted earnings were recognized in the Other Temporary differences. An amount of \u20ac\ue61f32 million was not recognized because the Group controls the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.Recognized deferred taxes for which utilization depends on future taxable profits in excess of the profit arising from the reversal of existing taxable temporary differences within entities that have suffered a tax loss in either current or preceding years in the related tax jurisdiction, amount to \u20ac134\ue61fmillion. This recognition is supported by favorable expectations of future taxable profits.F7.D. Other informationFor the majority of the Group\u2019s tax loss carryforwards, no deferred tax assets have been recognized. The unrecognized tax losses are mainly located in countries where they can be carried forward indefinitely. The tax losses carried forward generating deferred tax assets are given below by expiration date.In \u20ac million 2022 2021Within 1 year 0 15Within 2 years 1 16Within 3 years 1 2Within 4 years 0 2Within 5 or more years 12 28No time limit 1,402 974Total of losses carried forward which have generated recognized deferred tax assets 1,417 1,037Tax losses carried forward for which no deferred tax assets were recognized 5,203 6,050Total of tax losses carried forward 6,620 7,087The tax losses carried forward of \u20ac\ue61f1,417\ue61fmillion (\u20ac1,037 million in 2021) have generated deferred tax assets for \u20ac\ue61f374\ue61fmillion (\u20ac263 million in 2021). The increase of tax losses carried forward which have generated deferred tax assets, is largely due to the revised forecast for the holding company in France.NOTE\ue61fF8 DISCONTINUED OPERATIONS Accounting policyA discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale (see note F27 Assets held for sale), and which: \u00b7 represents a separate major line of business or geographical area of operations; \u00b7 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u00b7 is a subsidiary acquired exclusively with a view to resale.A component of the Group consists of operations and cash \ufb02ows, which can be clearly distinguished operationally and for financial reporting purposes, from the rest of the Group.In the consolidated statement of comprehensive income, the consolidated statement of cash \ufb02ows, and disclosures, discontinued operations are re-presented for prior periods presented.In 2021 the discontinued operation concerns post-closing warranties related to the disposal of the Pharma business.NOTE\ue61fF9EARNINGS PER SHAREAccounting policyThe basic earnings per share are obtained by dividing profit for the year by the weighted average number of ordinary shares outstanding during the reporting period. The weighted average number of ordinary shares excludes the treasury shares held by the Group over the reporting period.The diluted earnings per share are obtained by dividing profit for the year, adjusted for the effects of dilutive potential ordinary shares, by the weighted average number of ordinary shares, also adjusted by the number of dilutive potential ordinary shares attached to the issuance of share options. The number of dilutive potential ordinary shares is calculated for the weighted average number of share options outstanding during the reporting period as the difference between the average market price of ordinary shares during the reporting period and the exercise price of the share option. Share options have a dilutive effect only when the average market price is above the exercise price (share options are \u201cin the money\u201d).For the purpose of calculating diluted earnings per share, there were no adjusting elements to the profit for the year (Solvay share).Basic and diluted amounts per share for discontinued operations are presented in the consolidated income statement.Number of shares (in units) 2022 2021Weighted average number of ordinary shares (basic) 103,744,461 103,527,423Dilution effect 398,745 260,419Weighted average number of ordinary shares (diluted) 104,143,206 103,787,8422022 2021Basic Diluted Basic DilutedProfit/(loss) for the year (Solvay share) including discontinued operations (in \u20ac 1,905,416 1,905,416 947,738 947,738thousands)Profit/(loss) for the year (Solvay share) excluding discontinued operations (in \u20ac 1,905,150 1,905,150 943,177 943,177thousands)Earnings per share (including discontinued operations) (in \u20ac) 18.37 18.30 9.15 9.13Earnings per share (excluding discontinued operations) (in \u20ac) 18.36 18.29 9.11 9.09Full data per share, including dividend per share, can be found in the Business Review section.The average market price during 2022 was \u20ac\ue61f91.15 per share (2021: \u20ac\ue61f106.01 per share). The following share options were out of the money, and therefore antidilutive for the period presented, but could potentially dilute basic earnings per share in the future (see note\ue61fF30 Share-based payments):Antidilutive share options per plans Date Exercise Number of share Number of share grantedprice (in \u20ac)options grantedoptions outstanding2015 February 25, 2015 114.51 346,617 332,4092017 February 23, 2017 111.27 316,935 308,4502018 - 1 February 27, 2018 113.11 400,704 391,2802018 - 2 July 30, 2018 108.38 72,078 72,0782019 February 27, 2019 97.05 438,107 429,1032020 February 26, 2020 95.80 405,670 395,1642021 February 24, 2021 95.58 265,433 259,001Total \ue61f 2,245,544 2,187,485NOTES TO THE CONSOLIDATED STATEMENT OF\ue61fCOMPREHENSIVE INCOMENOTE\ue61fF10 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEAccounting policyIn accordance with IAS\ue61f1 Presentation of Financial Statements, the Group elected to present two statements, i.e. a consolidated income statement immediately followed by a consolidated statement of comprehensive income.The components of other comprehensive income (OCI) are presented before related tax effects with one amount shown for the aggregate amount of income tax relating to those components. Tax impacts are further disclosed in this note.Presentation of the tax effect relating to each item of\ue61fother\ue61fcomprehensive\ue61fincomeNote: the below table presents the total other comprehensive income items for the aggregate of the shares of Solvay and the non-controlling interests.\ue61f 2022 \ue61fIn \u20ac million Before-tax Tax expense Net of tax amount(-)/incomeamountEffective portion of gains and losses on hedging instruments in a cash \ufb02ow hedge 304 -7 297Recycling to the income statement -225 \ue61d -225Gains and losses on hedging instruments in a cash \ufb02ow hedge (see note F32) 79 -7 72Currency translation differences arising during the year 285 \ue61d 285Recycling of currency translations differences relating to foreign operations disposed of\ue61d in -1 \ue61d -1the\ue61dyearOther movement of currency translation differences (NCI) relating to foreign operations 0 \ue61f 0Currency translation differences - Subsidiaries and joint operations 284 \ue61f 284Share of other comprehensive income of associates and joint ventures 22 \ue61f 22Recyclable components 385 -7 377Gains and losses on equity instruments measured at fair value through other comprehensive -25 6 -19incomeRemeasurements of the net defined benefit liability (see notes F7 & F31) 155 -66 89Non-recyclable components 130 -60 70Other comprehensive income/(loss) 515 -67 447\ue61f 2021 \ue61fIn \u20ac million Before-tax Tax expense Net of tax amount(-)/incomeamountEffective portion of gains and losses on hedging instruments in a cash \ufb02ow hedge 71 5 76Recycling to the income statement -87 \ue61d -87Gains and losses on hedging instruments in a cash \ufb02ow hedge (see note F32) -17 5 -11Currency translation differences arising during the year 432 \ue61d 432Recycling of currency translations differences relating to foreign operations disposed of\ue61din the 47 \ue61d 47yearOther movement of currency translation differences (NCI) relating to foreign operations 8 \ue61f 8Currency translation differences - Subsidiaries and joint operations 487 \ue61f 487Share of other comprehensive income of associates and joint ventures 29 \ue61f 29Recyclable components 500 5 505Gains and losses on equity instruments measured at fair value through other comprehensive 33 -8 25incomeRemeasurements of the net defined benefit liability (see notes F7 & F31) 562 -75 487Non-recyclable components 594 -83 512Other comprehensive income/(loss) 1,094 -78 1,017The \u20ac33 million gain on equity instruments measured at fair value through other comprehensive income mainly relates to a Solvay Ventures investment that was listed in Q4 of 2021.Currency translation differencesAccounting policyFor the purpose of presenting consolidated financial statements at the end of each reporting period, the assets and liabilities of the Group\u2019s foreign operations are expressed in euros using closing rates. Income and expense items are translated at the average exchange rates for the period except when the impact of applying the average rate is materially different from applying the spot rate at the respective transactions\u2019 dates, in which case the latter is applied. Exchange differences arising, if any, are recognized in other comprehensive income as \u201ccurrency translation differences\u201d.Currency translation differences are reclassified from equity to profit or loss, on: \u00b7 a disposal of the Group\u2019s entire interest in a foreign operation, or a partial disposal involving loss of control over a subsidiary that includes a foreign operation. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss. Any exchange differences that have previously been attributed to non-controlling interests are derecognized, but they are not reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation, when the retained interest is a financial asset. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint venture or an associate that includes a foreign operation and that continues to be accounted for as a joint venture or an associate. In this case, a proportionate share of the accumulated exchange differences is reclassified to profit or loss. In case of a partial disposal of a subsidiary (i.e. No loss of control) that includes a foreign operation, the proportionate share of accumulated exchange differences is reattributed to non-controlling interests and is not recognized in profit or loss. In case of (a) a capital decrease of a subsidiary without loss of control, or (b) a capital decrease of an equity method investee or a joint operation without modification of the share of equity interest held in that investee, then no accumulated exchange differences are reclassified from equity to profit or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated into the Group\u2019s presentation currency at the closing rate.The total currency translation gain amounts to \u20ac\ue61f304 million in 2022, and only relates to the Group\u2019s share (2021: gain of \u20ac\ue61f508\ue61fmillion). They are linked to the revaluation of the US dollar (\u20ac260 million) (2021: \u20ac331 million), Chinese Renminbi (\u20ac(40) million) (2021: \u20ac83 million), the Brazilian Real (\u20ac38 million) (2021: \u20ac11 million), the Russian ruble (\u20ac22 million) (2021: \u20ac21 million), compared to the Euro.NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS(CONTINUING AND DISCONTINUED OPERATIONS)NOTE\ue61fF11 DEPRECIATION, AMORTIZATION AND\ue61eIMPAIRMENTSIn 2022 total depreciation, amortization and impairment losses (reversal) amount to \u20ac923 million (\u20ac849 million in 2021), of which: Straight-line depreciation and amortization of \u20ac\ue61f948\ue61fmillion (\u20ac906\ue61fmillion in 2021) for continuing operations recorded in: \u00b7 Cost of goods sold \u20ac\ue61f604\ue61fmillion (\u20ac564\ue61fmillion in 2021), \u00b7 Administrative costs \u20ac\ue61f85 million (\u20ac82 million in 2021), \u00b7 Research and development costs \u20ac\ue61f96\ue61fmillion (\u20ac100\ue61fmillion in 2021), \u00b7 Other \u20ac\ue61f163\ue61fmillion (\u20ac160\ue61fmillion in 2021), including \u20ac\ue61f146\ue61fmillion (\u20ac147\ue61fmillion in 2021) for PPA amortization (see note\ue61fF4 Other operating gains and losses);In 2022, the impairments include the impairment reversal of Special Chem assets for \u20ac37 million (see note F24 Impairment) and impairment losses of other non-performing assets for \u20ac(9) million.NOTE\ue61fF12 OTHER NON OPERATING AND\ue61eNON CASH\ue61eITEMSThe other non-operating and non-cash items for 2022 of \u20ac43 million (\u20ac(113) million in 2021) relate mainly to non-cash capital gains and other results for M&A deals. NOTE\ue61fF13 INCOME TAXES IN THE STATEMENT OF CASH FLOWSIncome tax expense in 2022 amounts to \u20ac217 million (\u20ac110 million in 2021), all of which was from continuing operations. Income tax paid in 2022 amounts to \u20ac305 million (\u20ac233 million in 2021), all of which was from continuing operations. The income tax paid has increased compared to previous years due to increased profits mainly in China, the US and Italy.The major components of Income taxes are discussed in note F7 Income taxes in income statement and statement of financial position. NOTE\ue61fF14 CHANGES IN WORKING CAPITALIn \u20ac million 2022 2021Inventories -300 -427Trade receivables -193 -459Trade payables 115 775Other receivables/payables -198 20Changes in working capital -576 -92Of which discontinued operations 0 -5Changes in working capital in 2022 result mainly from sales growth despite working capital disciplines and from the non-cash impact of the change in accounting treatment of the portfolio of CO emission rights. 2NOTE\ue61fF15 ADDITIONS, REVERSALS AND USE OF PROVISIONSAdditions and reversals on provisions in 2022 amount to \u20ac336 million (\u20ac464 million in 2021) and concern mainly employee benefits \u20ac63 million (\u20ac\ue61f46\ue61fmillion in 2021), restructuring \u20ac32 million (\u20ac184 million in 2021) and environment for \u20ac177 million (\u20ac90 million in 2021).Use of provisions in 2022 amount to \u20ac(328) million (\u20ac(303) million in 2021) and concerns mainly employee benefits \u20ac(101) million (\u20ac(89) million in 2021), environment \u20ac(90) million (\u20ac(61) million in 2021) and restructuring \u20ac(106) million (\u20ac(118) million in 2021).In 2022, use of provisions for additional voluntary contributions in pension plans relates to \u20ac(155) million in Germany.See note F31 Provisions for more information.NOTE\ue61fF16 CASH FLOWS FROM INVESTING ACTIVITIES \u2013 ACQUISITION/DISPOSAL OF\ue61eASSETS\ue61eAND\ue61eINVESTMENTS2022 - In \u20ac million Acquisitions Disposals TotalInvestments -14 95 81Subsidiaries \ue61f 95 95Other -14 \ue61f -14Property, plant and equipment/Intangible assets -909 21 -888Total -923 116 -8072021 - In \u20ac million Acquisitions Disposals TotalTotal investments -44 169 125Subsidiaries -22 169 147Other -22 \ue61f -22Property, plant and equipment/Intangible assets -637 30 -606Total -681 200 -4812022The other acquisitions (\u20ac\ue61f(14)\ue61fmillion) mainly relate to several investments of the Corporate Venturing portfolio (New Business Development). The disposal of subsidiaries (\u20ac95 million) mainly relates to the proceeds after taxes related to the final price adjustments for the disposal of the Barium Strontium business and the joint venture with Chemicals Products Corporation, the Polyamide business and the disposal of the Novecare Alkoxylation plant in Singapore.The acquisition of property, plant and equipment and intangible assets (\u20ac(909) million) includes the following main projects: \u00b7 Specialty Polymers: Polyvinylidene Fluoride (PVDF) capacity increase in Tavaux (France) and Changshu (PRC) \u00b7 Soda Ash & Derivatives: Soda ash capacity increase in Green River (USA) \u00b7 Novecare: internalization of IRIS intermediate chemical production in Melle (France) \u00b7 Technology Solutions: Aldoxime capacity increase in Mount Pleasant (USA) \u00b7 Aroma performance: internalization of natural vanillin purification in Saint Fons (France) \u00b7 Specialty Polymers: DCDPS monomer capacity increase in Augusta (USA) \u00b7 Specialty Polymers: Udel polysulfone capacity increase in Marietta (USA) \u00b7 Soda Ash & Derivatives: methane emissions abatement in Green River (USA)2021The acquisition of subsidiaries (\u20ac\ue61f(22)\ue61fmillion) mainly relates to the acquisition of a seed coating business from Bayer.Other acquisitions mainly relate to the investment in Shinsol Advanced Chemicals Corporation and in equity instruments measured at fair value.The disposal of subsidiaries (\u20ac169 million) mainly relates to the proceeds after taxes from: \u00b7 the sodium chlorate business line and related assets in Povoa, Portugal; \u00b7 the \ufb02uorine chemicals assets in Onsan, South Korea; \u00b7 the sodium percarbonate business line and related assets in Bad H\u00f6nningen, Germany; \u00b7 the Barium Strontium business and the joint venture with Chemical Products Corporation (CPC); \u00b7 the Process Materials business; \u00b7 the amphoterics surfactants activities; and \u00b7 the surfactants and anti-oxidants business in Rasal, India.The acquisition of property, plant and equipment and intangible assets (\u20ac(636) million) relates to various projects: \u00b7 Soda Ash: coal energy phase-out in Green River (USA); \u00b7 Aroma performance: internalization of natural vanillin purification in Saint Fons (France); \u00b7 Specialty Polymers: water treatment in Spinetta (Italy); \u00b7 Specialty Polymers: Tecno\ufb02on capacity expansion in Spinetta (Italy); \u00b7 Specialty Polymers: Polyvinylidene Fluoride (PVDF) capacity increase in Changshu (PRC); \u00b7 Composite Materials: new production unit dedicated to thermoplastic composites in Piedmont, South Carolina (USA); \u00b7 Soda Ash & Derivatives: new production unit dedicated to Bicarbonate in Devnya (Bulgaria); \u00b7 Specialty Polymers: Polyvinylidene Fluoride (PVDF) capacity increase in Tavaux (France).NOTE\ue61fF17 OTHER CASH FLOWS FROM FINANCING ACTIVITIESThe \u20ac112 million of other cash \ufb02ows from financing activities in 2022 mainly relate to margin calls on hedging instruments as part of Energy Services\u2019 activities for \u20ac128 million.The \u20ac50 million of other cash \ufb02ows from financing activities in 2021 mainly relate to margin calls on hedging instruments as part of Energy Services\u2019 activities for \u20ac108 million and to the payment of the EBRD option (\u20ac(52) million) to purchase the EBRD shares in the Solvay holding of the RusVinyl Joint Venture.For trading in futures of different commodities (CO, power, gas, coal), Energy Services uses brokers. These deals are subject to margin calls. To cover the 2credit risk of the counterparty, brokers pay a margin call to Solvay in case the instrument is in the money for Solvay. If the instrument is out of the money for Solvay, Solvay pays a margin call to the brokers. The margin calls are presented as part of financial debt (see note F33 Net indebtedness). Cash \ufb02ows from margin calls are recognized as financing cash \ufb02ows that \ufb02uctuate with the fair value of the instrument. The actual settlement of these commodity derivatives is net of margin calls and the gross amount (including margin calls that are reclassified from financing cash \ufb02ows) is recognized in operating cash \ufb02ows.NOTE\ue61fF18 CASH FLOW FROM DISCONTINUED OPERATIONSThe 2021 cash \ufb02ow from discontinued operations amounts to \u20ac(12) million related to the Pharma business and Polyamides. NOTES TO THE CONSOLIDATED STATEMENT OF\ue61fFINANCIAL\ue61fPOSITIONNOTE\ue61fF19 INTANGIBLE ASSETSAccounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.Intangible assets are amortized on a straight-line basis over their estimated useful lives, which do not exceed the contractual period, if any. The estimated useful lives, residual values and amortization methods are reviewed at each year-end, and any changes in estimates are accounted for prospectively.Patents and trademarks 2-20 yearsSoftware 3-5 yearsDevelopment expenditures 2-5 yearsCustomer relationships 5-29 yearsOther intangible assets - Technologies 5-20 yearsAmortization expense is included in the consolidated income statement within cost of goods sold, administrative costs, research and development costs and other operating gains and losses.The asset is tested for impairment if (a) there is a trigger for impairment, and (b) annually for projects under development (see note F24 Impairment).Intangible assets are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an intangible asset is recognized in profit or loss at the moment of derecognition.Patents, trademarks and customer relationshipsThose intangible assets have mainly been acquired through business combinations. Customer relationships consist of customer lists.Other intangible assetsOther intangible assets mainly include technology acquired separately or in a business combination.In \u20ac million Development Patents and Customer Other Totalcoststrademarksrelationshipsintangible assetsGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 464 1,620 1,856 661 4,601Additions 48 4 \ue61f 23 75Disposals and closures -9 -21 \ue61f -4 -33Increase through business combinations 0 0 \ue61f 7 7Currency translation differences 12 79 117 49 257Other 1 2 \ue61f 4 7December 31, 2021 517 1,686 1,973 739 4,914Additions 67 3 \ue61f 24 94Disposals and closures -22 -16 \ue61f -5 -43Increase through business combinations 0 0 \ue61f 0 0Currency translation differences 7 60 93 22 183Other 7 11 \ue61f -15 3December 31, 2022 577 1,744 2,066 765 5,152Accumulated amortization \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -173 -930 -824 -531 -2,459Amortization -65 -104 -82 -13 -264Impairment 0 5 0 -5 0Disposals and closures 8 21 \ue61f 4 32Currency translation differences -3 -36 -36 -42 -116Other 0 -3 \ue61f -2 -5December 31, 2021 -233 -1,047 -941 -590 -2,812Amortization -63 -97 -90 -14 -265Impairment 0 0 0 0 0Reversal of impairment 0 0 \ue61f 8 8Disposals and closures 22 16 \ue61f 5 43Currency translation differences -2 -26 -29 -21 -78Other 0 0 \ue61f 0 0December 31, 2022 -277 -1,155 -1,061 -611 -3,104Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 291 690 1,032 129 2,140December 31, 2021 283 638 1,031 149 2,102December 31, 2022 300 589 1,005 154 2,048Intangibles mainly relate to the intangibles acquired through the acquisitions of Rhodia and Cytec. The average remaining useful life of Cytec\u2019s assets is 10 years. NOTE\ue61fF20 GOODWILL AND BUSINESS COMBINATIONSAccounting policyGeneralAcquisitions of subsidiaries are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of acquisition) of assets transferred and liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized in profit or loss as incurred.Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance with relevant IFRSs, generally through profit or loss.Where a business combination is achieved in stages, the Group\u2019s previously held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. The date the Group obtains control) and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.The acquiree\u2019s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS\ue61f3 Business Combinations are recognized and measured at their fair value at the acquisition date, except that: \u00b7 deferred tax assets or liabilities, and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with IAS\ue61f12 Income Taxes, and IAS\ue61f19 Employee Benefits, respectively; \u00b7 liabilities or equity instruments related to the replacement by the Group of an acquiree\u2019s share-based payment awards are measured in accordance with IFRS\ue61f2 Share-based Payment; and \u00b7 assets (or disposal groups) that are classified as held for sale in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see paragraph below), or additional assets or liabilities are recognized, to re\ufb02ect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date.The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date, and does not exceed twelve months.GoodwillGoodwill arising in a business combination is recognized as an asset at the date that control is obtained (the acquisition date). Goodwill is measured as the excess of the sum of:(a) the consideration transferred;(b) the amount of any non-controlling interests in the acquiree; and(c) in a business combination achieved in stages, the acquisition date fair value of the previously held equity interest in the acquiree, over the share acquired by the Group in the fair value of the entity\u2019s identifiable net assets at the acquisition date.Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.Goodwill \u2013 overviewIn \u20ac million TotalDecember 31, 2020 3,265Currency translation differences 115Disposals -1December 31, 2021 3,379Currency translation differences 94December 31, 2022 3,472In 2022 and 2021, the currency translation differences mainly relate to goodwill expressed in US dollars.Goodwill by (groups of) CGU(s) Goodwill acquired in a business combination is allocated to the CGUs or groups of CGUs that are expected to benefit from that business combination.\ue61f 2022 \ue61f \ue61fIn \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUs \ue61f \ue61f \ue61f \ue61fMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUs \ue61f \ue61f \ue61f \ue61fComposite Materials 555 \ue61f 37 591Novecare 553 12 565Technology Solutions 690 \ue61f 43 734Special Chem 210 \ue61f 0 210Specialty Polymers 179 \ue61f 1 181Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,379 0 94 3,4722021In \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUsMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUsComposite Materials 509 \ue61f 46 555Novecare 542 -1 13 553Technology Solutions 636 \ue61f 54 690Special Chem 210 \ue61f 0 210\ue61f 2 Specialty Polymers 177179Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,265 -1 115 3,379See note F24 Impairment. NOTE\ue61fF21 PROPERTY, PLANT AND EQUIPMENTAccounting policyGeneralProperty, plant and equipment are tangible items that: \u00b7 are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and \u00b7 are expected to be used during more than one period.The items of property, plant and equipment owned by the Group are recognized as property, plant and equipment when the following conditions are satisfied: \u00b7 it is probable that the future economic benefits associated with the asset will \ufb02ow to the Group; \u00b7 the cost of the asset can be measured reliably.Items of property, plant and equipment are initially measured at cost. The cost of an item of property, plant and equipment comprises its purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. If applicable, the cost comprises borrowing costs during the construction period.After initial recognition, items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. The components of an item of property, plant and equipment with different useful lives are depreciated separately. Land is not depreciated. The estimated useful lives, residual values and depreciation methods are reviewed at each year end, also taking into account the potential impact of climate change including the execution of the Solvay One Plant Strategy (see Note Climate Change in the IFRS general accounting policies). Any changes in estimates are accounted for prospectively.Buildings 30-40 yearsIT equipment 3-5 yearsMachinery and equipment 10-20 yearsTransportation equipment 5-20 yearsDepreciation expense is included in the consolidated income statement within cost of goods sold, administrative costs, and R&D costs.The asset is tested for impairment if there is a trigger for impairment (see note F24 Impairment).Items of property, plant and equipment are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an item of property, plant and equipment is recognized in profit or loss at the moment of derecognition.Subsequent expenditureSubsequent expenditure related to items of property, plant and equipment is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred. Subsequent expenditure incurred for the replacement of a component of an item of property, plant and equipment is only recognized as an asset when it satisfies the recognition criteria mentioned above. The carrying amount of replaced items is derecognized.Repair and maintenance costs are recognized in the consolidated income statement as incurred.Regarding its industrial activity, Solvay incurs expenditure for major repairs over several years for most of its sites. The purpose of this expenditure is to maintain the proper working order of certain installations without altering their useful life. This expenditure is considered as a specific component of the item of property, plant and equipment and is depreciated over the period during which the economic benefits are expected to be obtained, i.e. the major repairs\u2019 intervals.Dismantling and restoration costsDismantling and restoration costs are included in the cost of an item of property, plant and equipment if the Group has a legal or constructive obligation to dismantle or restore. They are depreciated over the useful life of the items to which they pertain.Generally, Solvay\u2019s obligation to dismantle and/or restore its operating sites is only likely to arise upon the discontinuation of a site\u2019s activities. A provision for dismantling of discontinued sites or installations is recognized when there is a legal obligation (due to a request or injunction from the relevant authorities), or when there is no technical alternative than to dismantle, so to ensure the safety compliance of the discontinued sites or installations.Borrowing costsBorrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.All other borrowing costs are recognized in profit or loss in the period in which they are incurred.In \u20ac million Land and Fixtures and Other tan-Property, plant and equipment Totalbuildingsequipmentgible assetsunder constructionGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 2,819 9,699 414 405 13,337Additions 18 88 13 452 571Disposals and closures -16 -101 -29 0 -146Increase through business combinations 4 2 0 0 7Currency translation differences 101 348 13 24 486Other 15 151 7 -193 -20December 31, 2021 2,941 10,187 418 688 14,235Additions 28 103 8 715 854Disposals and closures -28 -132 -19 0 -179Increase through business combinations 0 0 0 0 0Currency translation differences 44 206 8 15 273Other 35 284 11 -385 -55December 31, 2022 3,021 10,648 425 1,033 15,128Accumulated depreciation \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -1,478 -6,813 -329 \ue61f -8,620Depreciation -73 -436 -27 \ue61f -535Impairment -5 -4 0 \ue61f -9Reversal of impairment 1 0 0 \ue61f 1Disposals and closures 12 101 29 \ue61f 143Currency translation differences -43 -226 -10 \ue61f -278Other 5 2 0 \ue61f 7December 31, 2021 -1,580 -7,375 -337 \ue61f -9,291Depreciation -80 -464 -27 \ue61f -570Impairment 0 -6 0 \ue61f -6Reversal of impairment 8 21 0 \ue61f 29Disposals and closures 26 130 19 \ue61f 175Currency translation differences -25 -151 -7 \ue61f -183Other 3 26 0 \ue61f 30December 31, 2022 -1,648 -7,818 -351 \ue61f -9,816Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 1,342 2,886 85 405 4,717December 31, 2021 1,361 2,813 81 688 4,943December 31, 2022 1,373 2,830 75 1,033 5,311The line \u201cOther\u201d mainly includes changes following portfolio transactions and reclassification of property, plant and equipment under construction to the appropriate categories when they are ready for intended use. Cash \ufb02ows related to major investments are disclosed in note F16 Cash \ufb02ows from investing activities \u2013 acquisition/disposal of\ue61fassets\ue61fand\ue61finvestments. Accounting policyDefinition of a lease At inception of a contract, which generally coincides with the date the contract is signed, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.An asset is typically identified by being explicitly specified in a contract. However, an asset can also be identified by being implicitly specified at the time that the asset is made available for use by the customer. If the supplier has a substantive substitution right, then the asset is not identified. A substantive substitution right means that (a) the supplier has the practical ability to substitute the asset throughout the period of use, and (b) would economically benefit from doing so. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether, throughout the period of use, it has: \u00b7 the right to obtain substantially all of the economic benefits from use of the identified asset; and \u00b7 the right to direct the use of the identified asset. This is generally the case when the Group has the decision-making rights regarding how and for what purpose the asset is used. The Group\u2019s leased assets relate mainly to buildings, transportation equipment, and industrial equipment.Lease termThe Group determines the lease term as the non-cancellable period of a lease, together with both: \u00b7 periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and \u00b7 periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option.In its assessment, the Group considers the impact of the following factors (non-exhaustive): \u00b7 contractual terms and conditions for the optional periods, compared with market rates; \u00b7 significant leasehold improvements undertaken (or expected to be undertaken) over the term of the contract; \u00b7 costs relating to the termination of the lease, including relocation costs, costs of identifying another underlying asset suitable for the Group\u2019s needs, costs of integrating a new asset into the Group\u2019s operations, and termination penalties; \u00b7 the importance of that underlying asset to the Group\u2019s operations, including the availability of suitable alternatives; \u00b7 conditionality associated with exercising the option (i.e. When the option can be exercised only if one or more conditions are met), and the likelihood that those conditions will exist; and \u00b7 past practice.Right-of-use asset and lease liabilityThe Group recognizes a right-of-use asset and a lease liability at the lease commencement date, which is the date that the lessor makes the asset available for use by the Group except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. The right-of-use assets are presented separately in the consolidated statement of financial position, and the lease liabilities are presented as part of financial debt.NOTE F22 RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONSRight-of-use assetThe right-of-use asset is initially measured at cost, which comprises: \u00b7 the amount of the initial measurement of the lease liability; \u00b7 any lease payments made at or before the commencement date, less any lease incentive received; and \u00b7 any initial direct costs incurred by the Group.After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any accumulated impairment losses. Right-of-use assets are depreciated using the straight-line depreciation method, from the commencement date to (a) the end of the useful life of the underlying asset, in case the lease transfers ownership of the underlying asset to the Group by the end of the lease term, or the lease contains a purchase option that the Group is reasonably certain to exercise, or (b) the earlier of the end of the useful life and the end of the lease term, in all other cases. Lease liabilityThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the respective Group entity\u2019s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise the following: \u00b7 fixed payments, less any lease incentives receivable; \u00b7 variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; \u00b7 amounts expected to be payable by the Group under residual value guarantees; \u00b7 the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and \u00b7 payments of penalties for early terminating the lease, if the Group is reasonably certain to exercise an option to early terminate the lease.Service components (e.g. Utilities, maintenance, insurance, \u2026) are excluded from the measurement of the lease liability. After the commencement date, the lease liability is measured by: \u00b7 increasing the carrying amount to re\ufb02ect interest on the lease liability; \u00b7 reducing the carrying amount to re\ufb02ect the lease payments made; and \u00b7 remeasuring the carrying amount to re\ufb02ect any reassessment or lease modifications, or to re\ufb02ect the impact from a revised index or rate.Leasing of PalladiumThe Group uses palladium, a precious metal, for certain of its operations. Next to purchasing this palladium, the Group also enters into various \u201cleasing\u201d agreements with financial institutions that give the Group the right to use palladium for a certain period and then return it at the end of the \u201clease\u201d. Based on our analysis of these agreements, these contracts are not in the scope of IFRS 16 Leases or IFRS 9 Financial Instruments. Due to the lack of clear IFRS guidance, the Group applied judgment to determine whether these rights and obligations shall be accounted for on a gross or a net basis. Considering that the Group bears no price risk during the \u2018lease\u2019 term and is not in full control of the asset (in accordance with the IFRS Conceptual Framework), the Group believes a net presentation gives a better view on the economic substance of the transaction. As a result, only accruals are recorded for the production losses and regeneration costs and the \u201clease\u201d fee is recognized within cost of sales. At the end of 2022, the total (gross) value of palladium leased still to be returned amounted to \u20ac59 million (end of 2021: \u20ac50 million) valued at the year-end closing rate.In \u20ac million Land Buildings Transpor-Industrial Other tangible Totaltation equipmentassetsequipmentGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 18 227 207 159 9 620Additions 0 29 23 82 1 134Disposals and closures 0 -1 -3 0 0 -4Currency translation differences 0 9 11 7 0 27Other 0 3 10 3 1 17Transfer to assets held for sale 0 0 0 0 0 1December 31, 2021 19 266 248 251 11 795Additions 0 8 46 27 5 86Disposals and closures 0 -38 -28 -11 -3 -79Currency translation differences 0 7 8 5 0 21Other 0 7 15 5 1 28Transfer to assets held for sale 0 0 0 0 0 0December 31, 2022 19 250 289 279 16 852Accumulated depreciation \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -2 -77 -83 -47 -6 -215Depreciation -1 -36 -42 -26 -3 -107Impairment 0 1 3 0 0 4Currency translation differences 0 -4 -5 -3 0 -11December 31, 2021 -4 -115 -127 -75 -8 -329Depreciation -1 -33 -46 -34 -3 -117Impairment 0 -3 0 0 0 -3Disposals and closures 0 38 28 11 3 79Currency translation differences 0 -3 -4 -2 0 -9December 31, 2022 -5 -115 -148 -100 -9 -378Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 16 150 124 112 4 405December 31, 2021 15 151 121 176 3 466December 31, 2022 14 134 141 178 6 474The Group primarily leases buildings that include office buildings, and warehouses. Those leases are generally long-term leases and may include extension options. Next, the Group leases transportation equipment that mainly consists of railcars and containers to transport the Group\u2019s products. Industrial equipment mainly relates to utility assets. In 2022, additions include \u20ac27 million for industrial equipment, \u20ac23 million for railcars and \u20ac17 million for containers.Lease contracts generally are negotiated by the local teams, and contain a wide range of different terms and conditions. Many lease contracts contain extension options and/or early termination options to provide the Group with operational \ufb02exibility. Such options are taken into account when determining the lease term and the lease liability when it is reasonably certain that they will be exercised. If the Group exercised its extension options not currently included in the lease liability, the present value of additional payments would amount to \u20ac\ue61f100\ue61fmillion at December 31, 2022 (\u20ac143 million at December 31, 2021). Lease contracts signed not yet commenced amount to \u20ac137 million at December 31, 2022 (\u20ac135 million for 2021) and mainly relate to a second waste wood boiler, steam turbine and auxiliaries in Germany, industrial equipment in France and rail cars in the United States. Total cash out\ufb02ows for leases amount to \u20ac134 million for 2022, of which \u20ac113 million related to payment of lease liabilities and \u20ac21 million of interest expenses. Information on the corresponding lease liabilities (\u20ac519 million) can be found in the note F33 Net indebtedness. Information on the finance expense related to lease liabilities can be found in note F6 Net financial charges. NOTE\ue61fF23 INVESTMENTS IN ASSOCIATES AND JOINT VENTURESThe list of associates and joint ventures is available in the note F40 List of companies included in the consolidation scope.The associates and joint ventures not classified as held for sale/discontinued operations are accounted for under the equity method of accounting.December 31, 2022December 31, 2021\ue61fIn \u20ac millionAssociates Joint Total \ue61f Associates Joint TotalventuresventuresInvestments in associates and joint ventures 18 790 809 \ue61f 18 619 637Earnings from associates and joint ventures 1 170 171 \ue61f 2 157 159INVESTMENTS IN ASSOCIATESIn \u20ac million 2022 2021January 1 18 16Profit for the year 1 2Dividends received -1 -2Currency translation differences 0 1December 31 18 18The tables below present the summary of the statement of financial position and income statement of the associates as if they were proportionately consolidated.In \u20ac million December 31, 2022 December 31, 2021Statement of financial position \ue61f\ue61fNon-current assets 14 14Current assets 17 16Cash and cash equivalents 3 3Non-current liabilities 2 2Non-current financial debt 1 1Current liabilities 11 10Current financial debt 2 2Investments in associates 18 18\ue61f \ue61f \ue61fIncome statement 2022 2021Sales 39 33Depreciation and amortization 1 -1Interest on loans and short term deposits 0 0Profit for the year from continuing operations 2 2Profit for the year 2 2\ue61f \ue61f \ue61fTotal comprehensive income 2 3\ue61f \ue61f \ue61fDividends received 1 1INVESTMENTS IN JOINT VENTURESIn \u20ac million 2022 2021January 1 619 479Additions 0 8Capital increase / (decrease) -5 0Profit for the year 170 157Dividends received -18 -127Currency translation differences 24 34Impairment reversal 0 67Other 1 1December 31 790 619In 2022 and 2021, the currency translation differences mainly relate to the evolution of the Russian ruble, of the Brazilian real and of the Indian rupee compared to the euro. In 2021, the impairment reversal of \u20ac67 million and the dividend received of \u20ac127 million mainly concern the joint venture Rusvinyl.In accordance with IFRS 11 Joint Arrangements, the Group has assessed whether the changes in the legal and operating environment of Russia have impacted the ability to exercise its joint control over Rusvinyl. There are no changes in facts and circumstances that may significantly limit the Group\u2019s ability to exercise its rights or governance with respect to Rusvinyl.The tables below present the summary of the statement of financial position and income statement of the material joint ventures as if they were proportionately consolidated.December 31, Rusvinyl Peroxidos Strata - Shandong Hindustan Aqua EECO Shinsol Cogenera-2022OOOdo Brasil Solvay Huatai Gum & Pharma Holding Advanced tion Rosi-LtdaAdvanced Interox Chemicals Groupand sub- ChemicalsgnanoMaterial Chemical LtdsidiariesJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership 50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4%interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 334 73 35 4 5 15 9 \ue61f 4assetsCurrent assets 147 89 10 12 153 9 13 8 2Cash and cash 113 39 9 9 138 6 4 8 2equivalentsNon-current 30 6 -0 - 5 1 6 \ue61f 3liabilitiesNon-current 6 3 -0 0 0 0 6 \ue61f 3financial debtCurrent liabilities 20 38 1 5 7 2 7 \ue61f 0Current financial 1 7 - 0 0 0 6 \ue61f 0debtInvestments in 431 118 43 11 146 21 9 8 3joint ventures\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f2022 income statement\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fSales 304 145 12 20 37 15 0 \ue61f 0Depreciation and -27 -5 0 0 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 7 4 0 0 6 0 0 \ue61f 0depositsIncome taxes -29 -16 0 -1 -1 -1 -1 \ue61f 0Profit for the year from 117 33 9 2 6 1 2 \ue61f 0continuing operationsProfit for the 117 33 9 2 6 1 2 \ue61f 0yearOther comprehensive 22 9 0 0 -8 0 0 \ue61f \ue61fincomeTotal comprehensive 138 42 9 2 -2 0 0 \ue61f 0incomeDividends 0 12 0 2 2 -1 0 \ue61f 0receivedOther comprehensive income mainly comprises the currency translation differences. December 31, Rusvinyl Peroxidos Strata - Shandong Hindus-Aqua EECO Hold-Shinsol Cogenera-2021OOOdo Brasil Solvay Huatai tan Gum Pharma ing and sub-Advanced tion Rosi-LtdaAdvanced Interox & Chemi-GroupsidiariesChemicalsgnanoMaterial Chemical cals LtdJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4% interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 324 61 29 4 5 16 10 \ue61f 5assetsCurrent assets 82 58 10 12 156 12 15 8 4Cash and cash 57 25 10 9 138 6 2 8 3equivalentsNon-current 50 7 0 - 5 4 8 \ue61f 4liabilitiesNon-current 30 4 0 0 0 0 8 \ue61f 4financial debtCurrent liabilities 64 26 3 5 8 1 9 \ue61f 1Current financial 39 4 - 0 0 0 8 \ue61f 1debtInvestments in 292 87 36 11 149 23 8 8 4joint ventures2021 income \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fstatementSales 276 88 13 22 22 18 0 \ue61f 0Depreciation and -22 -4 0 -1 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 2 1 0 0 7 0 1 \ue61f 0depositsIncome taxes -28 -11 0 -1 -2 -1 0 \ue61f 0Profit for the year from con-111 26 9 2 5 1 1 \ue61f 0tinuing opera-tionsProfit for the 111 26 9 2 5 1 1 \ue61f 0yearOther comprehensive 21 2 0 1 8 2 0 \ue61f \ue61fincomeTotal comprehensive 132 28 9 3 14 3 0 \ue61f 0incomeDividends re-103 15 0 1 2 -1 0 \ue61f 0ceivedOther comprehensive income mainly comprises the currency translation differences. NOTE\ue61fF24 IMPAIRMENT Accounting policyGeneralAt the end of each reporting period, the Group reviews whether there is any indication that assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are allocated to individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified.The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate. \ue61f Future cash \ufb02ows are adjusted for risks not incorporated into the discount rate.\ue61fIf the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.When an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. An impairment loss recognized for goodwill shall not be reversed in a subsequent period.Assets other than non-current assets held for saleIn accordance with IAS 36 Impairment of Assets, the recoverable amount of property, plant and equipment, intangible assets, right-of-use assets, CGUs or groups of CGUs, including goodwill, and equity method investees corresponds to the higher of their fair value less costs of disposal, and their value in use. The latter equals the present value of the future cash \ufb02ows expected to be derived from each asset, CGU or group of CGUs, and equity method investees and is determined using the following inputs: \u00b7 business plan approved by management based on growth and profitability assumptions, taking into account past performances, forecast changes in the economic environment and expected market developments, including opportunity and risks resulting from climate change (taking into account the Solvay One Planet strategy - see note Climate change in the IFRS general accounting policies) and environmental regulations such as products phasing out. For further details, refer to the Risk Management Section. Such business plan generally covers five\ue61fyears, unless management is confident that projections over a longer period are reliable; \u00b7 consideration of a terminal value determined based on the cash \ufb02ows obtained by extrapolating the cash \ufb02ows of the last years of the business plan referred to above, affected by a long-term growth rate deemed appropriate for the activity and the location of the assets; \u00b7 discounting of expected cash \ufb02ows at a rate determined using the weighted average cost of capital formula.Discount rateWeighted average cost of capital (WACC) was computed using the same methodology applied in previous years after extensive benchmarking with Peers: \u00b7 A short term WACC of 6.6% was utilized in 2022 (5.1% in 2021) to discount the expected cash \ufb02ows of the initial four years, computed based on prevailing discount rates; \u00b7 A long term WACC of 6.5% was utilized in 2022 (6.8% in 2021) to discount the expected cash \ufb02ows of the fifth year and the Terminal Value, and is a rolling 8-year average of historical short term WACCs. These WACCs are in the low range of the observed Peers\u2019 WACC estimates.Long-term growth ratesThe long-term growth rates used in 2022 are based: \u00b7 on the comprehensive review of the entire business portfolio performed in 2019 with the definition of the G.R.O.W. Strategy when each CGU was assigned to one of three agile business segments that became effective as from 2020: Materials, Chemicals and Solutions, with different growth opportunities, consistent with the long term growth rates of the market they serve and the Group competitive position in those markets; and \u00b7 on the long term growth potential for Composite Materials and Technology Solutions assessed during the 2020 impairment test which remain very strong.After reassessment of the long-term growth prospects the Group concluded that the prior year rates are still applicable and were thus set at: \u00b7 2% for the Specialty Polymers CGU and 3% for the Composite Materials CGU; \u00b7 0% in the Segment Chemicals, except for Soda Ash and Peroxides, for which a 1% rate was set; and \u00b7 1% for the other CGUs in the Segment Solutions (excluding Technology Solutions, for which 1.5% was used, and Oil & Gas).Other key assumptions are specific to each CGU (utility price, volumes, margin, etc.) and are based on approved budgets and mid-term plans. Impairment Test 2022The impairment tests performed at CGU level at December 31, 2022, were based on the budget 2023 approved by the Board and the Mid Term Plan 2024-2026 which re\ufb02ect the economic rebound after the COVID crisis and the results of the structural cost saving measures adopted by the Group. They did not lead to any impairment of assets, as the recoverable amounts of the (groups of) CGUs were higher than their carrying amounts. More specifically, the difference between the (groups of) CGUs\u2019 value in use and their carrying amount (headroom) represented in all cases more than 10% of their carrying amount. As a result, for these (groups of) CGUs, a reasonable change in a key assumption relating to the recoverable amount for which the (groups of) CGUs is based, would not result in an impairment loss. For comparability purposes the sensitivity analysis to WACC and long term growth rates assumptions for Composite Materials and Technology Solutions are presented.Composite MaterialsIn \u20ac billion December 31, 2022Assumptions: Discount rate = 6.5% Long term growth rate = 3%Sensitivity to: Impact on recoverable amount Revised headroomDiscount rate -1% 1.7 3.3Discount rate +1% -0.9 0.8Long term growth rate -1% -0.8 0.8Long term growth rate +1% 1.5 3.2In \u20ac billion December 31, 2021Assumptions: Discount rate = 6.8% Long term growth rate = 3%Impact on recoverable amount Revised headroomDiscount rate -1% 1.3 2.4Discount rate +1% -0.7 0.4Long term growth rate -1% -0.6 0.5Long term growth rate +1% 1.0 2.1The table below shows the break-even analysis for the headroom of Composite Materials:Discount rate Long term growth rateBase rate Break-even rate Base rate Break-even rateDecember 31, 2022 6.5% 8.9% 3.0% 0.2%December 31, 2021 6.8% 8.6% 3.0% 0.6%Technology SolutionsIn \u20ac billion December 31, 2022Assumptions: \ue61fDiscount rate = 6.5%Long term growth rate = 1.5%Sensitivity to: Impact on recoverable amount Revised headroomDiscount rate -1% 0.7 1.6Discount rate +1% -0.4 0.5Long term growth rate -1% -0.4 0.6Long term growth rate +1% 0.6 1.5In \u20ac billion December 31, 2021\ue61fAssumptions: \ue61f Discount rate = 6.8%\ue61fLong term growth rate = 1.5%Sensitivity to: Impact on recoverable amount Revised headroomDiscount rate -1% 0.5 0.9Discount rate +1% -0.3 0.1Long term growth rate -1% -0.3 0.2Long term growth rate +1% 0.4 0.8The table below shows the break-even analysis for the headroom of Technology Solutions:Discount rate Long term growth rateBase rate Break-even rate Base rate Break-even rateDecember 31, 2022 6.5% 9.2% 1.5% -2.1%December 31, 2021 6.8% 8.3% 1.5% 0.3%Other small groups of assets (Solutions)In 2022, following the improvement in performance after the industrial reorganization of some production sites in the Special Chem CGU for Fluor Gases in Europe, the impairment loss booked in 2020, after the COVID-19 crisis has been reversed (\u20ac37 million; Operating Segment: Solutions)Rusvinyl equity investmentRusvinyl is a Russian joint venture in chlorovinyls (included in the Chemicals Segment) in which Solvay holds a 50% equity interest, together with Sibur who holds the remaining 50% equity interest.Russia's actions in Ukraine combined with the Group decision to suspend the dividends distribution from our Rusvinyl joint venture have been considered as a trigger for an impairment test. As a result, the Group performed an impairment test in Q2 and Q4, 2022 based on Dividend Discount Models prepared for different business scenarios, considering the following key assumptions: \u00b7 0% long term growth rate, to re\ufb02ect the long term impacts of the con\ufb02ict on economic growth in Russia, \u00b7 dividends stream would resume from 2027, assuming a long lasting con\ufb02ict and sanctions against Russia, \u00b7 a long term WACC used for the Terminal Value which re\ufb02ects pre-crisis levels and a long term uncertainty premium. The carrying amount of the Rusvinyl equity investment at the end of Q4 2022 was \u20ac431 million, based on the closing exchange rate of 77.9 RUB/EUR. The\ue61fresults of the impairment test indicated that no such impairment existed. NOTE\ue61fF25 INVENTORIESAccounting policyCost of inventories includes the purchase, conversion and other costs incurred in bringing the inventories to their\ue61fpresent location and condition. The cost of inventories is determined by using the weighted average cost method. Inventories are measured at the lower of purchasing cost (raw materials and merchandise) or production cost (work in progress and finished goods) and net realizable value. Net realizable value represents the estimated selling price, less all estimated costs of completion and the estimated costs necessary to make the sale.CO emission rights2With respect to the mechanism set up by the European Union to encourage manufacturers to reduce their greenhouse gas emissions, carbon dioxide (CO) emission rights are granted to the Group for free. The Group is also involved in Clean Development Mechanism (CDM) under the 2Kyoto protocol. Under these projects, the Group has deployed facilities in order to reduce greenhouse gas emissions at the relevant sites in return for Certified Emission Reductions (CER).In the absence of any IFRS regulating the accounting treatment of CO emission rights, the Group applies the Trade/Production model, according 2to which CO emission rights are presented as inventories if they will be consumed in the production process within the next 12 months, or as 2derivatives if they are held for trading. Energy Services is involved in CO emission rights\u2019 trading, arbitrage and hedging activities. The net income 2or expense from these activities is recognized in \u201cother operating gains and losses\u201d (a) for the industrial component, where Energy Services sells the excess CO emission rights generated by Solvay or where a Group deficit is recognized, as well as (b) for the trading component, where Energy 2Services acts as a trader/broker with respect to those CO emission rights. 2In light of its centralized CO emission rights\u2019 portfolio management, for emission rights that are substitutable between subsidiaries, the Group\u2019s 2financial statements re\ufb02ect the Group\u2019s net position. If this net position is negative, a provision is recognized, measured based on the market price of the CO emission rights at reporting date. 2Energy savings certificates (ESCs)Energy savings certificates are presented as inventory items in Finished goods. They are measured at weighted average cost. As their cost is not separately identifiable, and as they are a by-product, they are measured at their net realizable value upon initial recognition.In \u20ac million December 31, 2022 December 31, 2021Finished goods 1,352 1,156Raw materials and supplies 838 661Work in progress 21 20Total 2,211 1,837Write-downs -102 -92Net total 2,109 1,745The CO emission rights amount to \u20ac57 million at the end of 2022. \u20ac16 million are included in the inventories (for 2022 obligations) and \u20ac41 million are 2reported under Other non-current assets (for obligations after 2022). See Note F32 Financial Instruments for further details on CO hedging.2Inventory write-downs are included in cost of goods sold in the consolidated income statement.NOTE\ue61fF26 OTHER RECEIVABLES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021VAT and other taxes 398 321Advances to suppliers 149 189Financial instruments \u2013 operational 929 1,326Insurance premiums 31 38Loan receivables 43 28Other 78 102Other current receivables 1,628 2,004Financial instruments \u2013 operational includes held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). NOTE\ue61fF27 ASSETS\ue61eHELD FOR SALEAccounting policyA disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit.Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to re\ufb02ect the new classification of a non-current asset (or disposal group) as held for sale.At the end of 2022 and 2021 there are no assets classified as held for sale. NOTE\ue61fF28EQUITYShare capitalOrdinary shares are classified as equity.Incremental costs directly attributable to the issuance of new share capital are directly recognized in equity as a deduction, net of tax, from the equity issuance proceeds.ReservesThe reserves include: \u00b7 treasury shares; \u00b7 perpetual hybrid bonds that qualify as equity absent any unavoidable contractual obligation to repay the principal and interest of the perpetual hybrid bonds (no maturity, interest is payable annually but can be deferred indefinitely at the issuer\u2019s discretion); \u00b7 retained earnings; \u00b7 currency translation differences from the consolidation process relating to the translation of the financial statements of foreign operations prepared in a non-euro functional currency to the euro presentation currency; \u00b7 the impacts of the fair value remeasurement of equity instruments measured at fair value through other comprehensive income; \u00b7 the impacts of the fair value remeasurement of financial instruments documented as hedging instruments in cash \ufb02ow hedges; \u00b7 actuarial gains and losses related to defined benefit plans.Non-controlling interestsThose represent the share of non-controlling interests in the net assets and comprehensive income of subsidiaries of the Group, and corresponds to the interests in subsidiaries that are not held by the Company or its subsidiaries.NUMBER OF SHARES (IN UNITS)December 31, 2022 December 31, 2021Shares issued and fully paid 105,876,416 105,876,416Treasury shares held 2,107,752 2,236,739The treasury shares held by the Group have been deducted from consolidated shareholders\u2019 equity. Perpetual hybrid bondsTo strengthen its capital structure, Solvay issued undated deeply subordinated perpetual bonds (\u201cperpetual hybrid bonds\u201d) of \u20ac1.8 billion as per the following table: In \u20ac million Issuance date Nominal value % Annual coupon First call / reset dateHybrid bond NC10 November 12, 2013 500 5.425% 27 November 12, 2023Hybrid bond NC8.5 December 2, 2015 500 5.869% 29 June 3, 2024Hybrid bond NC5.25* December 4, 2018 300 4.250% 13 March 4, 2024Hybrid bond NC5.5* September 2, 2020 500 2.500% 13 March 2, 2026* with 3 months call option at parAll perpetual hybrid bonds are classified as equity absent any unavoidable contractual obligation to repay the principal and interest of the perpetual hybrid bonds, specifically: \u00b7 No maturity, yet the issuer has a call option at every reset date to redeem the instrument; \u00b7 At the option of the issuer, interest payments can be deferred indefinitely.The coupons related to the perpetual hybrid bonds are recognized as equity transactions and are deducted from equity upon declaration (see consolidated statement of changes in equity). These coupons amount to\ue61f\u20ac82\ue61fmillion in 2022 (\u20ac75 million in 2021).\ue61fShould Solvay have elected not to pay any interest to the perpetual hybrid bond holders, then any payment of dividends to the ordinary shareholders or repayment of ordinary shares would trigger a contractual obligation to pay previously unpaid interests to the perpetual hybrid bond holders.\ue61fTax impacts related to the perpetual hybrid bonds are recognized in profit or loss.NOTE\ue61fF29NON-CONTROLLING INTERESTS The amounts disclosed below are fully consolidated amounts and do not re\ufb02ect the impacts from elimination of intragroup transactions.At the end of 2022, the following subsidiaries have non-controlling interests totaling \u20ac40 million (out of a total of \u20ac61 million). In \u20ac million Zhejiang Lansol Solvay Hengchang Zhangjiagang Special Chem Non-controlling ownership interest 45% 30%Statement of financial position \ue61f \ue61fNon-current assets 28 17Current assets 47 72Non-current liabilities 2 1Current liabilities 17 34Income statement \ue61f \ue61fSales 93 168Profit for the year 9 36Other comprehensive income -3 -3Total comprehensive income 6 32Dividends paid to non-controlling interests 0 6Share of non-controlling interest in the profit for the year 4 11Accumulated non-controlling interests 24 16During 2022 the Group purchased the remaining outstanding ownership interest in Solvay Soda Ash (20% for US$ 120 million) and Solvay Special Chem Japan (33% for \u20ac3.55 million) with the difference between the consideration paid and the net book value of the non-controlling interest being recorded as a component of equity (loss of \u20ac88 million on the purchase of Solvay Soda Ash and a gain of \u20ac9.5 million on the purchase of Special Chem Japan).At the end of 2021, the following subsidiaries have non-controlling interests totaling \u20ac93 million (out of a total of \u20ac112 million).In \u20ac million Zhejiang Solvay Special Solvay Soda Solvay Hengchang LansolChem JapanAsh Zhangjiagang Special Chem Non-controlling ownership interest 45% 33% 20% 30%Statement of financial position \ue61f \ue61f \ue61f \ue61fNon-current assets 28 17 285 18Current assets 37 19 75 70Non-current liabilities 2 1 19 0Current liabilities 15 2 79 44Income statement \ue61f \ue61f \ue61f \ue61fSales 80 63 309 136Profit for the year 5 3 135 21Other comprehensive income 4 -1 -8 3Total comprehensive income 9 2 127 25Dividends paid to non-controlling interests 3 1 34 1Share of non-controlling interest in the profit for the year 2 1 27 6Accumulated non-controlling interests 21 11 49 12NOTE\ue61fF30SHARE-BASED PAYMENTSAccounting policySolvay has set up compensation plans, including equity-settled and cash-settled share-based compensation plans.In its equity-settled plans, the Group receives services as consideration for its own equity instruments (namely through the issuance of share options). The fair value of services rendered by employees in consideration for the granting of equity-instruments represents an expense. This expense is recognized on a straight-line basis in the consolidated income statement over the vesting periods relating to these equity-instruments with the recognition of a corresponding adjustment in equity. The fair value of services rendered is measured based on the fair value of the equity-instruments on the grant date. It is not subsequently remeasured. At each reporting date, the Group re-estimates the number of share options likely to vest. The impact of the revised estimates is recognized in profit or loss against a corresponding adjustment in equity.In its cash-settled plans, the Group acquires services by incurring a liability to transfer to its employees rendering those services amounts that are based on the price (or value) of equity instruments (including shares or share options) of the Group (namely through the issuance of performance share units). The fair value of services rendered by employees in consideration for the granting of share-based payments represents an expense. This expense is recognized on a straight-line basis in the consolidated income statement over the vesting periods relating to these share-based payments with the recognition of a corresponding adjustment in liabilities. At each reporting date, the Group re-estimates the number of options likely to vest, with the impact of the revised estimates recognized in profit or loss. The Group measures the services acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss for the period.Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group\u2019s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are re\ufb02ected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are re\ufb02ected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. The dilutive effect of outstanding options is re\ufb02ected as additional share dilution in the computation of diluted earnings per share (further details are given in Note F9 Earnings per share).Stock Option PlanIn 2022, the Board of Directors offered to executive staff (17 beneficiaries) a share option plan with a view to incentivize long-term value creation delivered through the transformation of the Group. The plan is an equity-settled share-based plan. All of the managers involved subscribed to the options offered to them in 2022 with an exercise price of \u20ac84.34 representing the average stock market price of the share for the 30 days prior to the offer. Share option plans 2022 2021 2020 2019 2018 - 2 2018 - 1Number of share options granted and still outstanding at December 31, \ue61f 265,433 395,164 429,103 72,078 391,2802021Granted share options 386,867Forfeitures of rights and expiries -6,432Share options exercisedNumber of share options at December 31, 2022 386,867 259,001 395,164 429,103 72,078 391,280Share options exercisable at December 31, 2022 72,078 391,280Exercise price (in \u20ac) 84.34 95.58 95.58 97.05 108.38 113.11Fair value of options at measurement date (in \u20ac) 16.47 23.32 15.23 17.77 20.81 19.102017 2016 2015 2014Number of share options granted and still outstanding at December 31, 308,450 521,095 332,565 204,7872021Granted share optionsForfeitures of rights and expiries -156 -658Share options exercised -23,250 -204,129Number of share options at December 31, 2022 308,450 497,845 332,409Share options exercisable at December 31, 2022 308,450 497,845 332,409Exercise price (in \u20ac) 111.27 75.98 114.51 101.14Fair value of options at measurement date (in \u20ac) 23.57 17.07 24.52 22.792022 2021Number of share Weighted average Number of share Weighted average optionsexercise priceoptionsexercise priceJanuary 1 2,919,955 104.54 3,394,908 103.63Granted during the year 386,867 84.34 265,433 95.58Forfeitures of rights and expiries during the year -7,246 96.49 -152,403 104.56Exercised during the year -227,379 98.57 -587,983 95.25December 31 3,072,197 102.45 2,919,955 104.54Exercisable at December 31 1,602,062 1,366,897 In 2022, the share options resulted in an expense of \u20ac5 million, which was calculated by third parties according to the Monte Carlo simulation, and recognized in the consolidated income statement as part of administrative costs. The valuation of the stock option plan of 2022 is based on: \u00b7 the price of the underlying asset (Solvay share): \u20ac78 at September 29, 2022; \u00b7 the time outstanding until option maturity: exercisable from January 1, 2026 until December 31, 2027, taking into account the fact that some of them will be exercised before the option maturity; \u00b7 the option exercise price: \u20ac84.34; \u00b7 the risk-free return: 2.38% (on average); \u00b7 the average volatility of the underlying yield, estimated based on the option price: 32.8%; \u00b7 an average dividend yield of 2.76%; \u00b7 the achievement of a target market capitalization.Weighted average remaining contractual life of the share option plans:In years 2022 20212014 0.22015 0.2 1.22016 1.2 2.22017 2.2 3.22018-1 3.2 4.22018-2 3.6 4.62019 4.2 5.22020 5.2 6.22021 6.1 7.12022 5.0 \ue61fPerformance Share Units Plan (PSU)In 2022, the Board of Directors offered to executive staff a Performance Share Unit Plan, with the objective of promoting long-term success and to increase the focus on sustainable performance for the benefit of the Solvay Group and its stakeholders. All the managers involved subscribed to the PSU offered to them in 2022 with a grant date fair value of \u20ac90.61 representing the average stock market price of the share for the 30 days prior to the offer. The PSU plan 2022 is an equity-settled share-based plan with a 3-year vesting period, after which shares will be issued, if vesting conditions are met.The PSU plans of 2021 and 2020 are cash-settled plans with a 3-year vesting period, after which a cash settlement will take place, if vesting conditions are met.Performance share Plan 2022 Plan 2021 Plan 2020unitsNumber of PSUs 196,605 194,130 236,802Grant date 17/05/2022 23/02/2021 25/02/2020Vesting date 01/01/2025 01/01/2024 01/01/2023Vesting period 17/05/2022 to 31/12/2024 31/03/2021 to 31/12/2023 31/03/2020 to 31/12/202240% of the initial granted PSUs are 40% of the initial granted PSUs are 40% of the initial granted PSUs are sub-subject to the achievement of Year subject to the achievement of Year ject to the achievement of Year over over Year Underlying EBITDA growth over Year Underlying EBITDA growth Year Underlying EBITDA growth target target for each of the 3 (2022, 2023, target for each of the 3 (2021, 2022, for each of the 3 (2020, 2021, 2022) per-2024) performance years ending on 2023) performance years ending on formance years ending on December December 31, 2024December 31, 202331, 202240% of the initial granted PSUs are sub-40% of the initial granted PSUs are sub-40% of the initial granted PSUs are sub-ject to the sustained and /or improved ject to the sustained and /or improved ject to the sustained and /or improved ROCE % of the Company for each of ROCE % of the Company for each of ROCE % of the Company for each of the 3 (2022, 2023, 2024) performance the 3 (2021, 2022, 2023) performance the 3 (2020, 2021, 2022) performance Performance yearsyearsyearsconditions20% of the initial granted PSUs are 20% of the initial granted PSUs are 20% of the initial granted PSUs are subject to the reduction of GHG abso-subject to the reduction of GHG abso-subject to the reduction of GHG abso-lute emissions during the same 3 years lute emissions during the same 3 years lute emissions during the same 3 years (2022, 2023, 2024) (2021, 2022, 2023) (2020, 2021, 2022) Achievement of the plan is measured Achievement of the plan is measured Achievement of the plan is measured for each separate performance year. for each separate performance year. for each separate performance year. The score achieved for each individual The score achieved for each individual The score achieved for each individual year is acquired definitively, whatever year is acquired definitively, whatever year is acquired definitively, whatever the achievement of the other yearsthe achievement of the other yearsthe achievement of the other yearsValidation of perfor-By the Board of Directors By the Board of Directors By the Board of Directorsmance conditionsFor the PSU plan 2022, the participants who are also members of the Executive Leadership Team (including the CEO) on the grant date must achieve an additional performance condition. If achievement of the performance conditions outlined in the above table is positive (above 0), delivery of the PSUs is subject to further adjustment based on the Total Shareholder Return (TSR) performance of the Group in comparison to the TSR of the Stoxx 600 index companies for the period equal to the Performance Period. In 2022, the impact on the consolidated income statement regarding PSUs (net of hedging \u2013 see note F32 Financial Instruments) amounts to a cost of \u20ac\ue61f(20) million, compared to a cost of \u20ac\ue61f(17) million in 2021. Included in the 2022 PSU cost is \u20ac6 million related to the new equity-settled plan. The carrying amount of the PSU liabilities for the 2021 and 2020 cash-settled plans amounts to \u20ac39 million at the end of 2022, compared to \u20ac31 million at the end of 2021.At December 31, 2022, there were 192,828 PSUs outstanding for the 2022 equity settled plan and 180,816 and 200,941 for the 2021 and 2020 cash-settled plans, respectively.Restricted Share Units (RSU)In 2022, the Board of Directors offered to executive staff a Restricted Share Unit Plan, with the objective of promoting long-term success and to increase the focus on sustainable performance for the benefit of the Solvay Group and its stakeholders. All the managers involved subscribed to the RSU offered to them in 2022 with a grant date fair value of \u20ac90.61 representing the average stock market price of the share for the 30 days prior to the offer. 84,353 RSUs were granted. The Restricted Share Units is an equity-settled share-based plan with a vesting date of December 31, 2024, after which shares will be issued, if vesting conditions are met. At December 31, 2022, there are 82,732 RSUs outstanding. In 2022, the impact on the consolidated income statement of the RSUs amounts to a cost of \u20ac2 million. The PSUs and RSUs have been hedged by Solvay with 360,000 call options with a strike price at \u20ac86.24 maturing on September 29, 2023. See note F32 Financial Instruments.Employee Stock Purchase Plan (ESPP)In September 2022, Solvay launched its first employee share purchase plan. By participating in the plan, employees have the opportunity to purchase Solvay Group shares on preferential terms. 27.7% of employees subscribed to the plan offered to them in 2022 with a grant date fair value of \u20ac82.85 representing the average stock market price of the share for the 30 days prior to the offer. These employees will receive one free Solvay Group share for joining the plan as well as one matching share for every two shares purchased. The ESPP is an equity-settled share-based plan with a vesting date of September 30, 2024, after which the free and matching shares will be issued, if vesting conditions are met.At December 31, 2022, 79,455 shares are expected to be granted to the employees. The impact on the consolidated income statement of the ESPP amounts to a cost of \u20ac1 million.The ESPP has been hedged by Solvay with 80,500 call options with a strike price at \u20ac78.91 maturing on September 29, 2023.NOTE F31PROVISIONSIn \u20ac million Employee benefits Restructuring Environment Litigation Other TotalDecember 31, 2021 1,574 191 648 62 126 2,600Additions 63 32 194 54 33 377Reversals of unused amounts 0 0 -17 -10 -13 -41Uses -101 -106 -90 -8 -24 -328Use of provisions for additional voluntary contri--155 -155butions (pension plans)Increase/decrease through discounting 3 0 -42 1 0 -39Remeasurements -351 0 0 0 0 -351Currency translation differences 16 2 13 3 1 34Acquisitions and changes in consolidation scope 0 0 0 0 0 0Disposals 0 0 0 0 0 0Other 8 0 -3 -4 0 0December 31, 2022 1,057 119 702 97 123 2,097Of which current provisions 0 81 108 52 57 297The provisions decreased by \u20ac(503) million in 2022, of which \u20ac(517) million for Employee benefits, \u20ac(72) million for Restructuring, partially offset by an increase of \u20ac54 million for Environment and \u20ac35 million for Litigation. Employees benefit includes other long-term benefits and termination benefits.For employee benefits, the deleveraging of \u20ac(517) million is explained as follows: \u00b7 payments (uses) for \u20ac(101) million, and voluntary contributions of \u20ac(155) million to pension funds to deleverage and de-risk; \u00b7 net new liabilities (additions and reversals) for \u20ac63 million; \u00b7 remeasurements, resulting from the changes in assumptions related to the gross liability for \u20ac(1,067) million (mainly due to changes in discount rates); \u00b7 return on plan assets increasing the liability by \u20ac631 million, of which \u20ac(85) million in deduction of \u201cIncrease through discounting\u201d and \u20ac716 million in increase of \u201cRemeasurements\u201d for the assets return exceeding the discount rate, which excludes the impact of remeasurements on the plan assets surplus (\u20ac(195) million); \u00b7 net increase through discounting for \u20ac3 million for the unwinding of the discount rate on the gross liability; \u00b7 other increases in the employee benefit obligations for \u20ac109 million mainly due to the reclassification of the amounts recognized in asset surplus and currency translation differences. Restructuring, environmental and litigation - see note F31.B Provisions other than employee benefits.The movements in Other provisions mainly relate to post-closing adjustments resulting from M&A warranties as well as indemnities for environmental remediation.Management expects provisions (other than employee benefits) to be used (cash outlays) as follows:In \u20ac millionup to 5 years between 5 and 10 years beyond 10 years TotalTotal provisions for environment 361 96 245 702Total provisions for litigation 92 5 97Total provisions for restructuring and other 226 16 241December 31, 2022 679 116 245 1,0401. F31.A. Provisions for employee bene\ue782tsAccounting policyGeneralThe Group\u2019s employees are offered various post-employment benefits, other long-term employee benefits, and termination benefits as a result of legislation applicable in certain countries, and contractual agreements entered into by the Group with its employees or constructive obligations.The post-employment benefits are classified as defined contribution or defined benefit plans.Defined contribution plansDefined contribution plans involve the payment of fixed contributions to a separate entity, and release the employer from any subsequent obligation, as this separate entity is solely responsible for paying the amounts due to the employee. The expense is recognized when an employee has rendered services to the Group during the period.Defined benefit plansDefined benefit plans concern all plans other than defined contribution plans, and include: \u00b7 post-employment benefits: pension plans, other post-employment obligations and supplemental benefits such as post-employment medical plans.Taking into account projected final salaries on an individual basis, post-employment benefits are measured by applying a method (projected unit credit method) using assumptions involving discount rate, life expectancy, turnover, wages, annuity revaluation and medical cost in\ufb02ation. The assumptions specific to each plan take into account the local economic and demographic contexts.The discount rates are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligation.The amount recognized under post-employment obligations corresponds to the difference between the present value of future obligations and the fair value of the plan assets funding the plan, if any. If this calculation gives rise to a deficit, an obligation is recognized in liabilities. Otherwise, a net asset limited to the lower of the surplus in the defined benefit plan and the present value of any future plan refunds or any reduction in future contributions to the plan is recognized. Therefore the amount at which such an asset is recognized in the statement of financial position may be subject to a ceiling.The defined benefit cost consists of service cost and net interest expense (based on discount rate) on the net liability or asset, both recognized in profit or loss, and remeasurements of the net liability or asset, recognized in other comprehensive income.Service cost consists of current service cost, past service cost resulting from plan amendments or curtailments and settlement gains or losses.The interest expenses arising from the reverse discounting of the benefit obligations, the financial income on plan assets (determined by multiplying the fair value of the plan assets by the discount rate) as well as interest on the effect of the asset ceiling are recognized on a net basis in the net financial charges (cost of discounting of provisions).Remeasurements of the net liability or asset consist of: \u00b7 actuarial gains and losses on the benefit obligations arising from experience adjustments and/or changes in actuarial assumptions (including the effect of changes in the discount rate) recognized in other comprehensive income; \u00b7 Changes as a consequence of plan amendments, recognized in profit or loss; \u00b7 the return on plan assets (excluding amounts in net interest) and changes in the limitation of the net asset recognized.Other long-term employee and termination benefitsOther long-term employee benefits related to long service benefits granted to employees according to their seniority in the Group. Termination benefits include early pension plans. Other long-term employee and termination benefits are accounted for in the same way as post-employment benefits but remeasurements are fully recognized in the net financial charges during the period in which they occur.The actuarial calculations of the main post-employment obligations and other long-term benefits are performed by independent actuaries.OVERVIEW In \u20ac million December 31, 2022 December 31, 2021Post-employment benefits 873 1,371Other long-term benefits 136 153Termination benefits 49 50Total employee benefits 1,057 1,574POST-EMPLOYMENT BENEFITSA. Defined contribution plansFor defined contribution plans, Solvay pays contributions to publicly or privately administered pension funds or insurance companies. For 2022, the expense amounts to \u20ac59 million compared to \u20ac56 million for 2021. B. Defined benefit plansDefined benefit plans can be either funded via outside pension funds or insurance companies (\u201cfunded plans\u201d) or financed within the Group (\u201cunfunded plans\u201d). Unfunded plans have no plan assets dedicated to them. The net liability results from the net of the provisions and the asset plan surplus.In \u20ac million December 31, 2022 December 31, 2021Provisions 873 1,371Asset plan surplus -62 -248Net liability 810 1,123\ue61f \ue61f \ue61f\ue61f 2021 2021Operational expense 44 19Finance expense 14 13The operating expense includes current service cost for \u20ac38 million (\u20ac43 million in 2021) (see also B.3.). B.1. Management of risksOver recent years, the Group has reduced its exposure to defined benefit plan obligations stemming from future services by converting existing plans into pension plans with a lower risk profile (hybrid plans, cash balance plans and defined contribution plans) or by closing them to new entrants.Solvay continuously monitors its risk exposure, focusing on the following risks:Asset volatilityEquity instruments, even though expected to outperform corporate bonds in the long-term, create volatility and risk in the short-term. To mitigate this risk, the allocation to equity instruments is monitored using Assets and Liabilities Management techniques, to ensure it remains appropriate given the respective schemes\u2019 and Group\u2019s long term objectives.Changes in bond yieldsA decrease in corporate bond yields will increase the carrying amount of the plans\u2019 liabilities. For funded schemes this impact will be partially offset by an increase in the fair value of the plan assets.Corporate bond yields are highly dependent on global and local market situations, the decisions of central banks and the political situation. Events\ue61fthat are currently impacting the financial markets are: \u00b7 the war in Ukraine and its geopolitical consequences; \u00b7 high in\ufb02ation due to increasing energy prices; \u00b7 quantitative tightening applied by central banks to\ue61fcombat\ue61frising in\ufb02ation.Consequently, yields in the major currency zones (Eurozone, the UK, and the US) have increased compared to 2021 (see Actuarial assumptions used in determining the liability).\ue61fThe result is a\ue61fdecrease in the Group's defined benefit obligations in 2022.\ue61fIn\ufb02ation riskThe defined benefit obligations are linked to in\ufb02ation, and\ue61fas a result,\ue61fhigher in\ufb02ation will lead to\ue61fan increase in the benefit obligation\ue61f(although, in most cases, caps on the level of in\ufb02ationary increases are in place to protect against extreme in\ufb02ation). A\ue61flimited\ue61fpart of the assets\ue61fare either unaffected by or only partially correlated with in\ufb02ation, meaning that an increase in in\ufb02ation will also increase the plans\u2019 net liabilities.The in\ufb02ation rate in each country is based on the Global Economic Consensus Forecast (GCF) with the exception of the UK, where the information is derived from the Bank of England. Long-term in\ufb02ation assumptions have increased slightly in the Eurozone in comparison to 2021. In the UK, the outlook for the retail price index and consumer price index remains unchanged from 2021. The long-term in\ufb02ation rate in the US, which is also based on the\ue61fGCF, remains unchanged compared to 2021. (See\ue61fActuarial assumptions used in determining the liability)Life expectancyThe majority of the schemes\u2019 obligations are to provide benefits for the life of the member. Increases in life expectancy will therefore increase the plans\u2019 liabilities.Regulatory riskEspecially with respect to funded plans, the Group is exposed to the risk of external funding following regulatory constraints. This should not impact the defined benefit obligation but could expose the Group to a potential significant cash outlay.B.2. Description of obligationsThe provisions have been set up to cover post-employment benefits granted by most Group companies in line, either with local rules and /or with established practices, which generate constructive obligations.The largest post-employment plans in 2022 are in the United Kingdom, the United States, France, Germany and Belgium. These five countries represent 94% of the total defined benefit obligations and represent 95% of the total recognized plan assets.December 31, 2022\ue61fIn \u20ac million Defined bene-In % Recognized Net liability/In % Ratio plan assets of which asset surplus fit obligationsplan assets(asset)on defined benefit recognized in the obligationsbalance sheetUnited Kingdom 1,045 27% \ue61f 1,031 14 2% 99% 0United States 1,097 29% \ue61f 984 113 14% 90% 0France 722 19% \ue61f 309 414 51% 43% 32Germany 399 10% \ue61f 201 198 24% 50% 0Belgium 328 9% \ue61f 330 -2 0% 101% 23Other countries 209 6% \ue61f 136 73 9% 65% 7Total 3,801 100% \ue61f 2,990 810 100% 79% 62December 31, 2021\ue61fIn \u20ac million Defined bene-In % Recognized Net liability/In % Ratio plan assets of which asset surplus fit obligationsplan assets(asset)on defined benefit recognized in the obligationsbalance sheetUnited Kingdom 1,618 32% \ue61f 1,678 -60 -5% 104% 76United States 1,315 26% \ue61f 1,230 86 8% 93% 66France 953 19% \ue61f 372 582 52% 39% 50Germany 516 10% \ue61f 70 446 40% 14%Belgium 384 8% \ue61f 405 -21 -2% 105% 51Other countries 229 5% \ue61f 139 90 8% 61% 5Total 5,016 100% \ue61f 3,893 1,123 100% 78% 248United KingdomSolvay sponsors a few defined benefit plans in the United Kingdom; the largest one is the Rhodia Pension Fund (the Fund). This is a final salary funded pension plan, with entitlement to accrue a percentage of salary per year of service. It was closed to new entrants in 2003 and replaced by a defined contribution plan.Broadly, about 8% of the liabilities are attributable to current employees, 28% to former employees and 64% to current pensioners.The Fund functions and complies with UK legislation under a large regulatory framework. The Pensions Regulator has a risk-based approach to regulation and a code of practice, which provides practical guidance to trustees and employers of defined benefit schemes on how to comply with the scheme funding requirements. In accordance with UK legislation, the Fund is subject to Scheme Specific Funding, which requires that pension plans are funded prudently.The Fund is governed by a Board of Trustees. They manage the Fund with prudent and fair judgment. The Trustees determine the liabilities used for Statutory Funding Objectives based on prudent actuarial and economic assumptions. Any shortfall or deficit once these liabilities have been deducted from the Fund\u2019s assets must be reduced by additional contributions and in a time frame determined in accordance with the employer\u2019s ability to pay and the strength of covenant or contingent security being offered by the employer.The Fund is subject to a triennial valuation cycle for funding purposes. This valuation is performed by the scheme actuary in line with UK regulations and is discussed between the Trustees and the sponsoring employer to agree the valuation assumptions and a funding plan. The last completed valuation was as of July 1, 2021, which established a fixed contribution rate of pensionable pay for active members plus a deficit recovery plan, which aims to fully fund the scheme\u2019s technical provisions by the end of 2027 in accordance with local regulations. The guarantee provided by Solvay (\u00a3 330 million) is based on local regulations and exceeds the recognized liability \u2013 See note F36 Contingent assets, liabilities and financial guarantees for more information. FranceSolvay sponsors several defined benefit plans in France. The largest plans are the French compulsory retirement indemnity plan and three closed top hat plans. Indeed, as required by the \u201cLoi Pacte\u201d, the open top hat plan (so called \u201cARS\u201d) was closed at the end of 2019 and replaced by a defined contribution plan. The main plan is for all former Rhodia employees who contributed to the plan prior to its closure in the 1970s. It offers a full benefit guarantee based on the end-of-career salary; more than 99% of the liabilities are attributable to current pensioners. This plan is partially funded.In accordance with French legislation, adequate guarantees have been provided.United StatesSolvay sponsors five defined benefit pension plans in the United States (two qualified plans and three non-qualified plans). A qualified plan is an employer-sponsored retirement plan that qualifies for special tax treatment under Section 401(a) of the Internal Revenue Code. At this moment all defined benefit plans are closed to new entrants where newly hired employees are eligible to participate in a defined contribution plan. Note that both qualified defined benefit pension plans are funded while the three non-qualified defined benefit pension plans are unfunded. The qualified plans make up the vast majority of the pension liabilities as of December 31, 2022.Solvay's plans are in compliance with local laws regarding audited financial statements, governmental filings, and Pension Benefit Guaranty Corporation insurance premiums where applicable. The plans are reviewed and monitored locally by fiduciary committees for purposes of plan investments and administrative matters.For the US qualified plans, Solvay\u2019s contributions take into account minimum (tax-deductible) funding requirements as well as maximum tax deductible contributions, both regulated by the tax authorities.Certain eligible participants may elect to receive their pension in a single lump sum payment instead of a monthly payment.Broadly, about 24% of the liabilities are attributable to current employees, 11% to former employees for whom benefit payments have not yet commenced and 65% to current pensioners.In 2022, in the United States Solvay contributed to two multiemployer pension plans under collective bargaining agreements that cover certain of its union-represented employees. Each of the multiemployer plans is a defined benefit pension plan. None of the multiemployer plans provide an allocation of its assets, liabilities, or costs among contributing employers. None of the multiemployer plans provides sufficient information to permit Solvay, or other contributing employers, to account for the multiemployer plan as a defined benefit plan. Accordingly, the company accounts for its participation in each of the multiemployer plans as if they were a defined contribution plan. For multiemployer plans, during 2022 and 2021, the annual contributions paid were less than \u20ac1 million.GermanySolvay sponsors various defined benefit plans in Germany. The largest plans are a closed final-pay plan and an open cash balance plan. Broadly, about 70% of the liabilities are attributable to current pensioners. These plans are partially funded; an additional voluntary contribution of \u20ac155 million to the Contractual Trust Agreement was paid in 2022.BelgiumSolvay sponsors two defined benefit plans in Belgium. These are funded pension plans. The plan for executives has been closed since the end of 2006, and the plan for the White and Blue collars has been closed since 2004. The past service benefits provided under these plans continue to be adapted each year considering annual salary increase and in\ufb02ation (\u201cDynamic management\u201d). In accordance with market practice in Belgium, because of favorable retirement lump sum taxation, most benefits are paid as lump sum. Furthermore, Solvay sponsors two open defined contribution plans, classified as defined benefit plans for accounting purposes due to the minimum guarantees explained hereafter. These are funded pension plans which are open since the beginning of 2007 for the one in favor of the executives and since the beginning of 2005 for the one in favor of the White and Blue collars. Participants may choose to invest their contributions amongst four different investment funds (from \u201cPrudent\u201d to \u201cDynamic\u201d). However, regardless of their choices, the Belgian law foresees that the employer must guarantee a return on employer contribution and on personal contribution, creating that way a potential liability for the Group. Since 2016 the return has been fixed at 1.75% for both types of contributions, at the minimum of the range provided by law since January 1, 2016 (1.75% to 3.75%). At the end of 2022, net liability recognized in the consolidated statement of financial position concerning these plans is not material.Solvay\u2019s plans are administered through the Solvay Pension Fund that operates in compliance with local laws regarding minimum funding, investments principles, audited financial statements, governmental filings, and governance principles. The Pension Fund is managed through a General Assembly and a Board of Directors delegating day-to-day activities to an operational committee.Solvay sponsors a few other smaller pension plans. All these plans are insured.Other PlansThe majority of the obligations relate to pension plans. In some countries (mainly the United States), there are also post-employment medical plans, which represent 4% (4% in 2021) of the total defined benefit obligation.B.3. Financial impactsChanges in net liability In \u20ac million 2022 2021Net amount recognized at beginning of period \ue61f 1,123 \ue61f 1,975Net expense recognized in P&L - Defined benefit plans \ue61f 58 \ue61f 33Actual employer contributions / direct actual benefits paid \ue61f -227 \ue61f -292Acquisitions and disposals \ue61f 0 \ue61f -1Remeasurements before impact of asset ceiling \ue61f -157 \ue61f -564Change in the effect of the asset ceiling limit on remeasurements \ue61f 2 \ue61f 2Reclassifications \ue61f 2 \ue61f -56Currency translation differences \ue61f 9 \ue61f 25Net amount recognized at end of period \ue61f 810 \ue61f 1,123Remeasurements including the impact of asset ceiling \u20ac(155) million comprise: \u00b7 the unfavorable investment return on plan assets (excluding interests reported in the consolidated income statement) for \u20ac910 million; \u00b7 increase in discount rates \u20ac(1,150) million mainly in the United States, United Kingdom, Brazil and Eurozone; \u00b7 increase in in\ufb02ation rate \u20ac60 million for Eurozone; \u00b7 other remeasurements due to changes in the other financial assumptions, demographic and experience effects \u20ac25 million.Net expenseIn \u20ac million 2022 2021Current service costs 38 43Past service costs (including curtailments and settlements) 1 -26Service costs 40 17Interest cost 99 66Interest income -85 -53Net interest 14 13Administrative expenses paid 5 3Net expense recognized in P&L - Defined benefit plans 58 33Remeasurements recognized in other comprehensive income -155\ue61f -562The service costs and administrative expenses of these benefit plans are recognized within cost of sales, administrative costs, research & development costs or operating gains and losses and results from legacy remediation, and the net interest is recognized as a finance expense.In 2022 the Group\u2019s current service costs amount to \u20ac38 million (\u20ac43 million in 2021), of which \u20ac27 million (\u20ac32 million in 2021) related to funded plans and \u20ac11 million (\u20ac11 million in 2021) related to unfunded plans. Net liabilityIn \u20ac million December 31, 2022 December 31, 2021Defined benefit obligations - Funded plans 3,477 4,468Fair value of plan assets at end of period -2,995 -3,896Deficit for funded plans 482 573Defined benefit obligations - Unfunded plans 323 548Deficit / surplus (-) 805 1,120Amounts not recognized as asset due to asset ceiling (recognized in other comprehensive 4 2income) Net liability (asset) 810 1,123Provision recognized 873 1,371Asset recognized -62 -248Changes in defined benefit obligationsIn \u20ac million 2022 2021Defined benefit obligation at beginning of period \ue61f 5,016 5,436Current service costs \ue61f 38 43Past service costs (including curtailments) \ue61f 1 -26Interest cost \ue61f 99 66Employee contributions \ue61f 4 4Settlements \ue61f 0 -2Acquisitions and disposals (-) \ue61f 0 -8Remeasurements in other comprehensive income \ue61f -1,067 -422Actuarial gains and losses due to changes in demographic assumptions \ue61f -26 -36Actuarial gains and losses due to changes in financial assumptions \ue61f -1,100 -322Actuarial gains and losses due to experience \ue61f 59 -64Actual benefits paid \ue61f -324 -302Currency translation differences \ue61f 32 225Reclassification and other movements \ue61f 2 1Defined benefit obligation at end of period \ue61f 3,800 5,016Defined benefit obligations - Funded plans \ue61f 3,477 4,468Defined benefit obligations - Unfunded plans \ue61f 323 548Changes in the fair value of plan assetsIn \u20ac million 2022 2021Fair value of plan assets at beginning of period \ue61f 3,896 3,461Interest income \ue61f 85 53Remeasurements in other comprehensive income \ue61f -910 142Return on plan assets (excluding amounts in net interests including on asset \ue61f -910 142surplus)Employer contributions \ue61f 227 292Employee contributions \ue61f 4 4Administrative expenses paid \ue61f -5 -3Acquisitions / Disposals (-) \ue61f 0 -7Settlements \ue61f 0 -2Actual benefits paid \ue61f -324 -302Currency translation differences \ue61f -23 200Reclassification and other movements \ue61f 0 57Fair value of plan assets at end of period \ue61f 2,995 3,896Actual return on plan assets (including on asset surplus) \ue61f -825 195In 2022, the total return on plan assets, i.e. including interest income, is a loss of \u20ac825 million against \u20ac195 million gain in 2021.In 2022, the Group\u2019s cash contributions amount to \u20ac227 million (\u20ac292 million in 2021), of which \u20ac42 million (\u20ac29 million in 2021) of mandatory contributions to funds, \u20ac155 million (\u20ac236 million in 2021) of voluntary cash contributions, and \u20ac30 million (\u20ac27 million in 2021) of direct benefits payments. In 2022, the voluntary cash contributions were made to improve the funding level of the Germany pension plans (\u20ac155 million) and increase de-risking with the additional plans assets. Except for any significant change in the regulatory environment (see \u201cregulatory risk\u201d above), the Group\u2019s mandatory cash contributions and direct benefits payments in 2023 are expected to be approximately \u20ac71 million.Categories of plan assetsDecember 31, 2022 December 31, 2021Equities 20% 23%Bonds 74% 62%Properties and infrastructures 3% 3%Cash and cash equivalents 2% 5%Others 1% 6%Total 100% 100%With respect to the invested assets, it should be noted that these assets do not contain any direct investment in Solvay shares or in property or other assets occupied or used by Solvay. This does not exclude Solvay shares being included in mutual investment fund type investments.Changes in asset ceiling In \u20ac million 2022 2021Effect of the asset ceiling limit at beginning of period \ue61f 2Change in the effect of the asset ceiling limit on remeasurements \ue61f 2 2Effect of the asset ceiling limit at end of period \ue61f 4 2Actuarial assumptions used in determining the liabilitySome of the retirement plans that Solvay has in place provide annuity payments that are adjusted on a regular basis to mitigate the effects for cost of living increases. The salary growth assumption is used to determine what will be the salary at the end of the career of the individuals, as the defined benefit plans take into account the last salary of the individuals. This assumption includes impacts of both in\ufb02ation and merit increases.The pension growth assumption defines the expected future adjustments for these annuity payments. The plan defines how these annuity payments will be adjusted, and might be linked to in\ufb02ation. Pension growth assumptions mainly apply for the defined benefit retirement plans in the United Kingdom, France and Germany.The long term in\ufb02ation assumption is presented separately as salary growth and pension growth assumptions encompass more variables than in\ufb02ation. Eurozone UK USA 2022 2021 2022 2021 2022 2021Discount rates 3.75% 1.00% 4.75% 2.00% 5.00% 2.75%Expected rates of future salary increases 2.00% - 4.25% 1.75% - 4.00% 2.50% - 3.00% 2.50% - 3.00% 3.00% - 3.50% 3.00% - 3.50%In\ufb02ation 2.00% - 2.50% 1.75% - 2.00% 3.00% 3.00% 2.50% 2.50%Expected rates of pension growth 0.00% - 2.50% 0.00% - 2.00% 2.80% 2.85% NA NAActuarial assumptions used in determining the annual costEurozone UK USA2022 2021 2022 2021 2022 2021Discount rates 1.00% 0.25% 2.00% 1.25% 2.75% 2.25%Expected rates of future salary 1.75% - 4.00% 1.75% - 3.75% 2.50% - 3.00% 2.00% - 2.75% 3.00% - 3.50% 3.00% - 3.50%increases In\ufb02ation 1.75% - 2.00% 1.50% - 1.75% 3.00% 2.75% 2.50% 2.00%Expected rates of pension growth 0.00% - 2.00% 0.00% - 1.75% 2.80% 2.70% NA NAActuarial assumptions regarding future mortality are based on recent country specific mortality tables. These assumptions translate at January 1, 2022 into an average remaining life expectancy in years for a pensioner retiring at age 65:In years \ue61f Belgium France Germany United United KingdomStatesRetiring at the end of the \ue61f \ue61f \ue61f \ue61f \ue61f \ue61freporting\ue61fperiodMale \ue61f 19 25 20 20 21Female \ue61f 22 28 24 23 22Retiring 20 years after the end of the reporting\ue61fperiodMale \ue61f 20 28 23 21 22Female \ue61f 24 31 26 24 24For most countries the mortality assumptions re\ufb02ect actual scheme experience and/or Solvay\u2019s expectations in terms of future mortality improvements.The actuarial assumptions used in determining the employee benefits obligation at December\ue61f31 are based on the following employee benefits liabilities durations:Eurozone United Kingdom United StatesDuration in years 11.1 14.2 9.0Sensitivities on the defined benefits obligation for the post-employment benefitsEach sensitivity amount is calculated assuming that all other assumptions are held constant. The economic factors and conditions often affect multiple assumptions simultaneously.Sensitivity to a change of percentage in the discount rates: In \u20ac million 0.25% increase 0.25% decreaseEurozone -35 37United Kingdom -34 36United States -23 24Others -4 4Total -96 101Sensitivity to a change of percentage in the in\ufb02ation rates:In \u20ac million 0.25% increase 0.25% decreaseEurozone 34 -33United Kingdom 28 -27United States 0 0Others 2 -2Total 64 -62Sensitivity to a change of percentage in salary growth rates:In \u20ac million 0.25% increase 0.25% decreaseEurozone 5 -5United Kingdom 2 -1United States 0 0Others 0 0Total 7 -6Sensitivity to a change of one year on mortality tables \u2013 The table shows impacts when the age of all beneficiaries increases or decreases by one year:In \u20ac million Age correction +1 year Age correction -1 yearEurozone -62 64United Kingdom -48 48United States -28 28Others -5 5Total -143 145RestructuringsA restructuring provision is recognized when the Group has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the entity.Environmental remediation costsEnvironmental liabilities are mainly related to non-ongoing activities (shut-down sites, discontinued activities or divested activities where Solvay maintains certain commitments) and, to a lower extent, to ongoing activities (see comments below).An environmental provision is recognized, in accordance to IAS 37, when there is a current legal or constructive obligation resulting from past events which will result in a probable out\ufb02ow of resources (expenses / cash outs) to settle it and for which a reliable estimate of such out\ufb02ows and timing can be made.The environmental expenses encompass, but are not limited to, the following key matters \u00b7 Sampling and analytical costs for soil and ground water monitoring \u00b7 Cost related to dismantling when required to meet a remediation or permit obligation \u00b7 Asbestos removal when obligated by regulation \u00b7 Environmental investigations and studies (Risk Assessments, Phase I and II soil and groundwater) The closing amount of the environmental provisions is based on the net present value of the future cash \ufb02ows needed, for current and future years, to settle remediation obligations. Forecast expenditures are based on external consultant estimates, where appropriate and possible. Future expenditures are forecast and revised biannually and validated quarterly by Solvay finance and suitably qualified industrial experts led by the Group Environmental Rehabilitation Director and benefit from inputs of legal department staff for the evolution of Environmental Regulations.In the absence of probable obligations, a contingent liability may be disclosed to represent the future possible liability. In some cases, contingent liabilities cannot be quantified. See Note F36 Contingent assets, liabilities and financial guarantees.Restructuring provisionsIn 2022, these provisions amount to \u20ac119 million, compared with \u20ac191 million at the end of 2021.The provisions at the end of 2022 mainly relate to the restructuring charges for the simplification of all support functions in the frame of the Group\u2019s simplification and transformation program, including the strategic transformation measures. Environmental provisionsThese provisions amount to \u20ac\ue61f702\ue61fmillion at the end of 2022, compared with \u20ac\ue61f648\ue61fmillion at the end of 2021, and pertain to: \u00b7 mines and drilling operations to the extent that legislation and/or operating permits in relation to quarries, mines and drilling operations contain requirements to pay compensation to third parties. Most of these provisions, based on local expert advice, can be expected to be used over a 1-20\ue61fyear horizon and amount to \u20ac\ue61f125 million; \u00b7 the dismantling of the last mercury electrolysis activities was completed in 2019. The remaining provisions related to those activities will be used for the management of contamination of soil and groundwater, mostly over the next 20 years; \u00b7 lime dikes (settling ponds related mainly to soda ash plant), dump at sites and third party dump sites (linked to several industrial activities). These provisions have an horizon of 1 to 20 years; \u00b7 various types of pollution (organic, inorganic) coming from miscellaneous chemical productions; these provisions mainly cover discontinued activities or closed plants. Most of these provisions have a horizon of 1 to 20\ue61fyears; \u00b7 Solvay Specialty Polymers made significant progress toward determining the scope of remedial activities pertaining to the per- and poly\ufb02uoroalkyl substances (PFAS) related to the West Deptford, New Jersey site. Due to recent technical studies and in cooperation with the local authorities, Solvay was able to reasonably estimate future expenses to address this remediation. As a consequence, a corresponding provision of \u20ac93 million was recognized in Q3 2022. The resulting cash out\ufb02ows are expected to occur over a minimum 20 year period with 50% of the out\ufb02ows occurring within the next 2 years.\ue61f This provision reduces, though does not eliminate, the associated contingent liabilities previously reported.The variation of Environmental provisions also were impacted from the revised assumptions of higher in\ufb02ation rates, partially offset by the impact of higher discount rates reducing the present value of the overall liability by \u20ac(59) million. This effect, combined with the unwinding of the opening liabilities for \u20ac17 million resulted in a net decrease of \u20ac(42) million related to discounting. The estimated amounts are discounted based on the probable date of settlement, and are periodically adjusted to re\ufb02ect the passage of time.The breakdown of the environmental provisions and related uses for the main Countries/Regions is reported here below:December 31, 2022 December 31, 2021In \u20ac million Provisions In % ProvisionsUse of Provisions In % Provisions Use of ongoing provisionsongoing provisionsactivitiesactivitiesFrance 145 21% 1 -24 152 24% -13Germany 112 16% 7 -5 117 18% 7 -4Rest of Europe 144 21% 5 -15 161 25% 5 -14North America 226 32% 0 -37 151 23% -24Rest of the world 74 11% 0 -8 66 10% -6Total 702 100% 12 -90 648 100% 13 -61Provisions for litigationProvisions for litigation refer to indirect tax and legal exposures. They amount to \u20ac\ue61f97\ue61fmillion in 2022 (\u20ac62 million in 2021). The balance at the end of 2022 relates to indirect tax risks (\u20ac\ue61f11\ue61fmillion) and legal claims (\u20ac\ue61f86\ue61fmillion).Other provisionsOther provisions relate to the shutdown or disposal of activities and amount to \u20ac\ue61f123\ue61fmillion in 2022, compared with \u20ac\ue61f126\ue61fmillion at the end of 2021. NOTE\ue61fF32 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENTAccounting policyGeneralFinancial assets and liabilities are recognized when, and only when Solvay becomes a party to the contractual provisions of the instrument. Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates the expected cash \ufb02ows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts.Financial assetsTrade receivables are initially measured at their transaction price, if they do not contain a significant financing component, which is the case for substantially all trade receivables. Other financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A financial asset is classified as current when the cash \ufb02ows expected to \ufb02ow from the instrument mature within one year.All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 Financial Instruments. Specifically: \u00b7 a debt instrument that (i) is held within a business model whose objective is to collect the contractual cash \ufb02ows and (ii) has contractual cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; \u00b7 a debt instrument that (i) is held within a business model whose objective is achieved both by collecting contractual cash \ufb02ows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option. Upon derecognition, the cumulative gains and losses previously recognized in other comprehensive income are reclassified to profit or loss; \u00b7 all other debt instruments are measured at FVTPL; \u00b7 all equity investments are measured in the consolidated statement of financial position at fair value, with gains and losses recognized in profit or loss except that if an equity investment is not held for trading, nor contingent consideration recognized by an acquirer in a business combination, an irrevocable election can be made at initial recognition to measure the investment at FVTOCI, with dividend income recognized in profit or loss. This classification is determined on an instrument-by-instrument basis. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to retained earnings. \u00b7 Equity investments in partnerships of investment funds are measured in the consolidated statement of financial position at fair value with gains and losses recognized in profit or loss. Based on the analysis of the characteristics of these funds the Group determined that they were not eligible for the FVTOCI option and therefore are accounted for at FVTPL. For instruments quoted in an active market, the fair value corresponds to a market price (level 1). For instruments that are not quoted in an active market, the fair value is determined using valuation techniques including reference to recent arm\u2019s length market transactions or transactions involving instruments which are substantially the same (level 2), or discounted cash \ufb02ow analysis including, to the greatest possible extent, assumptions consistent with observable market data (level 3). However, in limited circumstances, cost of equity instruments may be an appropriate estimate of their fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.Impairment of financial assetsThe impairment loss of a financial asset measured at amortized cost is calculated based on the expected loss model, representing the weighted average of credit losses with the respective risks of a default occurring as the weights. Expected credit losses are based on the difference between the contractual cash \ufb02ows due in accordance with the contract and all the cash \ufb02ows that the Group expects to receive, discounted at an approximation of the original effective interest rate.For trade receivables that do not contain a significant financing component (i.e. substantially all trade receivables), the loss allowance is measured at an amount equal to lifetime expected credit losses. Those are the expected credit losses that result from all possible default events over the expected life of those trade receivables, using a provision matrix that takes into account historical information on defaults adjusted for the forward-looking information per customer. The Group considers a financial asset in default when contractual payments are 60 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is fully impaired when there is no reasonable expectation of recovering the contractual cash \ufb02ows.Impairment losses are recognized in the consolidated income statement, except for debt instruments measured at fair value through other comprehensive income. In this case, the allowance is recognized in other comprehensive income.Financial liabilitiesFinancial liabilities are initially measured at fair value minus, in the case of a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial liability. Subsequently, they are measured at amortized cost, except for: \u00b7 financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value; \u00b7 financial guarantee contracts. After initial recognition, guarantees are subsequently measured at the higher of the expected losses and the amount initially recognized.Derivative financial instrumentsA derivative financial instrument is a financial instrument or other contract within the scope of IFRS 9 Financial Instruments with all three of the following characteristics: \u00b7 its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the \u2018underlying\u2019); \u00b7 it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; \u00b7 it is settled at a future date.The Group enters into a variety of derivative financial instruments (forward, future, option, collars and swap contracts) to manage its exposure to interest rate risk, foreign exchange rate risk, and commodity risk (mainly utility and CO emission rights price risks).2As explained above, derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in income or expense, unless the derivative is designated and effective as a hedging instrument. The Group designates certain derivatives as hedging instruments of the exposure to variability in cash \ufb02ows with respect to a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss (cash \ufb02ow hedges).A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivative instruments (or portions of them) are presented as non-current assets or non-current liabilities if the remaining maturity of the underlying settlements is more than twelve months after the reporting period. Other derivative instruments (or portions of them) are presented as current assets or current liabilities.Hedge accountingThe Group designates certain derivatives and embedded derivatives, in respect of interest rate risk, foreign exchange rate risk, Solvay share price risk, and commodity risk (mainly utility and CO emission rights price risks), as hedging instruments in a cash \ufb02ow hedge relationship.2At the inception of the hedge relationship, there is a formal designation and documentation of the hedging relationship and the Group\u2019s risk management objective and strategy for undertaking the hedge. So to apply hedge accounting: (a) there is an economic relationship between the hedged item and the hedging instrument, (b) the effect of credit risk does not dominate the value changes that result from that economic relationship, and (c) the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.The requirement under (a) above that an economic relationship exists means that there is an expectation that the value of the hedging instrument and the value of the hedged item will systematically change in the opposite direction in response to movements in either the same underlying (or underlyings that are economically related in such a way that they respond in a similar way to the risk that is being hedged).Cash \ufb02ow hedgesThe effective portion of changes in the fair value of hedging instruments that are designated in a cash \ufb02ow hedge is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.As long as cash \ufb02ow hedge qualifies, the hedging relationship is accounted for as follows:a) the separate component of equity associated with the hedged item (cash \ufb02ow hedge reserve) is adjusted to the lower of the following (in absolute amounts):(i) the cumulative gain or loss on the hedging instrument from inception of the hedge; and(ii) the cumulative change in fair value (present value) of the hedged item (i.e. The present value of the cumulative change in the hedged expected future cash \ufb02ows) from inception of the hedge.b) the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge (i.e. The portion that is offset by the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is recognized in other comprehensive income;c) any remaining gain or loss on the hedging instrument (or any gain or loss required to balance the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is hedge ineffectiveness that is recognized in profit or loss.d) the amount that has been accumulated in the cash \ufb02ow hedge reserve in accordance with (a) is accounted for as follows:(i) if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the Group removes that amount from the cash \ufb02ow hedge reserve and includes it directly in the initial cost or other carrying amount of the asset or the liability. This is not a reclassification adjustment and hence it does not affect other comprehensive income;(ii) for cash \ufb02ow hedges other than those covered by i), that amount is reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash \ufb02ows affect profit or loss (for example, in the periods that interest income or interest expense is recognized or when a forecast sale occurs);(iii) however, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.Most hedged items are transaction related. The time value of options, forward elements of forward contracts, and foreign currency basis spreads of financial instruments that are hedging the items affect profit or loss at the same time as those hedged items. Hedge accounting is discontinued prospectively when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. When the Group discontinues hedge accounting for a cash \ufb02ow hedge it accounts for the amount that has been accumulated in the cash \ufb02ow hedge reserve as follows: \u00b7 if the hedged future cash \ufb02ows are still expected to occur, that amount remains in the cash \ufb02ow hedge reserve until the future cash \ufb02ows occur. However, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment; \u00b7 if the hedged future cash \ufb02ows are no longer expected to occur, that amount is immediately reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment. A hedged future cash \ufb02ow that is no longer highly probable to occur may still be expected to occur.Fair value hedgesThe gain or loss on the hedging instrument shall be recognized in profit or loss (or other comprehensive income, if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income).The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts shall remain in other comprehensive income. When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in the fair value of the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding gain or loss recognized in profit or loss.The following table presents the financial assets and liabilities as current or non-current according to their classification under IFRS 9.December 31, 2022 December 31, 2021In \u20ac million Classification Carrying amount Carrying amountNon-current assets - Financial instruments \ue61f 464 553Equity instruments measured at fair value through Financial assets measured at fair value through 24 51other comprehensive incomeother comprehensive incomeEquity instruments measured at fair value through Financial assets measured at fair value through 47 62profit or lossprofit or lossLoans and other non-current assets (excluding pension fund surpluses and long-term inventory Financial assets measured at amortized cost 197 252balance)Financial instruments - Operational \ue61f 196 187Held for trading Held for trading 130 108Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 66 79cash \ufb02ow hedge relationshipCurrent assets - Financial instruments \ue61f 4,093 4,300Trade receivables Financial assets measured at amortized cost 2,026 1,805Other financial instruments \ue61f 206 229Other marketable securities >3 months Financial assets measured at amortized cost 43 70Currency swaps Held for trading 1 4Other current financial assets Financial assets measured at amortized cost 162 155Financial instruments - Operational \ue61f 929 1,326Held for trading Held for trading 553 1,101Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 376 225cash \ufb02ow hedge relationshipCash and cash equivalents Financial assets measured at amortized cost 932 941Total assets - Financial instruments \ue61f 4,557 4,853Non-current liabilities - Financial instruments \ue61f 2,753 2,907Financial debt \ue61f 2,450 2,576Bonds Financial liabilities measured at amortized cost 1,994 2,112Other non-current debts Financial liabilities measured at amortized cost 42 55Lease liabilities IFRS 16 - Non-current portion Lease liabilities measured at amortized cost 413 408Other liabilities Financial liabilities measured at amortized cost 112 153Financial instruments - Operational \ue61f 192 178Held for trading Held for trading 146 107Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 46 71cash \ufb02ow hedge relationshipCurrent liabilities - Financial instruments \ue61f 3,646 4,414Financial debt \ue61f 510 773Short-term financial debt Financial liabilities measured at amortized cost 397 673Currency swaps Held for trading 2 3Lease liabilities IFRS 16 - Current portion Lease liabilities measured at amortized cost 111 97Trade payables Financial liabilities measured at amortized cost 2,296 2,131Financial instruments - Operational \ue61f 676 1,350Held for trading Held for trading 492 1,118Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 183 232cash \ufb02ow hedge relationshipDividends payables Financial liabilities measured at amortized cost 165 160Total liabilities - Financial instruments \ue61f 6,399 7,320In 2021 and 2022, long-term CO inventory balances reported are not financial assets and hence are not included in the table above. They are presented 2as other non-current assets. F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.Income and expenses on financial instruments recognized in other comprehensive income include the following:In \u20ac million Cash \ufb02ow hedgesForeign currency Interest rate risk Commodity risk Risk on Solvay Totalriskshare price2022 2021 2022 2021 2022 2021 2022 2021 2022 2021January 1 -7 16 7 2 2 1 17Recycling from other comprehensive income of derivative financial 31 -9 \ue61f \ue61f -257 -78 \ue61f \ue61f -226 -87instruments designated in a cash \ufb02ow hedge relationshipEffective portion of changes in fair value -10 -14 \ue61f \ue61f 317 85 -1 306 71of cash \ufb02ow hedgeDecember 31 13 -7 67 7 1 2 81 1Conventionally, (+) indicates an increase and (-) a reduction in equity.F32.C. Capital managementSee 2 Capital, shares and shareholders in respect of capital in the Corporate Governance statement chapter of this annual report.The Group manages its funding structure with the objective of safeguarding its ability to continue as a going concern, optimizing the return for shareholders, maintaining an investment-grade rating, and minimizing the cost of debt.\ue61fThe capital structure of the Group consists of equity (including perpetual hybrid bonds (see note F28 Equity) and of net debt (see note F33 Net indebtedness). Perpetual hybrid bonds are nevertheless considered as debt in the Group\u2019s Underlying metrics.\ue61fBesides the statutory minimum equity funding requirements that apply to the Company\u2019s subsidiaries in the different countries, Solvay is not subject to any additional legal capital requirements.\ue61fThe Treasury department reviews the capital structure on an ongoing basis under the authority and the supervision of the Chief Financial Officer. As appropriate, the Legal department is involved to ensure compliance with legal and contractual requirements.F32.D. Financial risk managementThe Group is exposed to market risk from movements in foreign exchange rates, interest rates and other market prices (utility prices, CO emission 2rights prices and equity prices). The Group\u2019s senior management oversees the management of these risks and is supported by the Treasury department (non-commodity risks) and Solvay Sustainable Development and Energy department that advise on financial risks and the appropriate financial risk governance framework for the Group. Both departments provide assurance to the Group\u2019s senior management that the Group\u2019s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Group\u2019s policies and risk objectives. Solvay uses derivative financial instruments to hedge clearly identified foreign exchange, interest rate, index, utility price and CO emission rights price risks (hedging instruments). All derivative activities for risk management purposes are carried out by specialist teams that have 2the appropriate skills, experience and supervision. However, the required criteria to apply hedge accounting are not met in all cases.Furthermore, the Group is also exposed to liquidity risks and credit risks.Foreign currency risksThe Group is a multi-specialty chemical company with operations worldwide, and hence undertakes transactions denominated in foreign cur-rencies. Consequently, the Group is exposed to exchange rate \ufb02uctuations. In 2022, the Group was mainly exposed to US dollar, Chinese yuan, Brazilian real and Japanese yen. To mitigate its foreign currency risk, the Group has defined a hedging policy that is essentially based on the principles of financing its activities in local currency and hedges the transactional exchange risk at the time of invoicing (risk which is certain). The Group constantly monitors its ac-tivities in foreign currencies and hedges, where appropriate, the exchange rate exposures on expected cash \ufb02ows (risk which is highly probable). Exchange rate exposures are managed within approved policy parameters utilizing forward foreign exchange contracts or, when appropriate, other derivatives like currency options. In the course of 2022, the \u20ac/US$ exchange rate moved from 1.1326 at the start of January to 1.0674 at the end of December (from 1.2270 to 1.1326 in 2021). A \ufb02uctuation of (0.10) to the US$/\u20ac exchange rate, would generate in 2022 about \u20ac180 million (\u20ac120 million for 2021) variation to the EBITDA. 51% of this variation is at conversion level and 49% at transaction level, the latter being mostly hedged. EBITDA is the key non-IFRS metric for operational performance as defined in the glossary.At the end of 2022, a strengthening of the US dollar vs euro would increase the net debt by approximately \u20ac87 million (\u20ac79 million in 2021) per 0.10\ue61fUS$/\u20ac \ufb02uctuation. Conversely, a weakening of the US dollar vs euro would decrease the net debt by approximately \u20ac72 million (\u20ac66 million in 2021) per 0.10\ue61fUS$/\u20ac \ufb02uctuation.The Group\u2019s currency risk can be split into two categories: translation and transactional risk.Translation riskThe translation exchange risk is the risk affecting the Group\u2019s consolidated financial statements related to investees operating in a currency other than the EUR (the Group\u2019s presentation currency).\ue61fDuring 2022 and 2021, the Group did not hedge the currency risk of foreign operations.Transactional riskThe transactional risk is the exchange risk linked to a specific transaction, such as a Group entity buying or selling in a currency other than its functional currency.To the largest extent possible, the Group manages the transactional risk on receivables and borrowings centrally and locally when centralization is not possible.The choice of borrowing currency depends mainly on the opportunities offered by the various markets. This means that the selected currency is not necessarily that of the country in which the funds will be invested. Nonetheless, operating entities are financed essentially in their functional currencies.In emerging countries, it is not always possible to borrow in local currency, either because funds are not available in local financial markets, or because the financial conditions are too onerous. In such a situation, the Group has to borrow in a different currency. Nonetheless, the Group considers opportunities to refinance its borrowings in emerging countries with local currency debt.Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are classified into the two categories described below:Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). Cash \ufb02ow hedgeThe Group uses derivatives to hedge identified foreign exchange rate risks. It documents those as hedging instruments unless it hedges a recognized financial asset or liability when generally no cash \ufb02ow hedge relationship is documented. Most hedges are transaction related.At the end of 2022, the Group had mainly hedged highly probable sales in foreign currencies (short position) in a nominal amount of US$ 839 million (\u20ac786 million) and JP\u00a5 15,902 million (\u20ac113 million). All cash \ufb02ow hedge contracts that exist at the end of December 2022 will be settled within the next 12 months, and will impact profit or loss during that period.The following table details the notional amounts of Solvay\u2019s derivatives contracts outstanding at the end of the period:NOTIONAL AMOUNTSDecember 31, 2022\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of of exposure exchange rate hedge hedging instrumentthe the risk expo-hedgedper risk categoryreserve (1) (1)instrumentsure\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets LiabilitiesCash \ufb02ow hedges - Forecasted sales and (3)purchasesJPY/EUR -71 -147 48% 139.17 0 1 1JPY/USD -42 -87 48% (2) 132.47 -1 1 2Total JPY -113 -234 -1 1 2USD/BRL -187 -285 66% (2) 5.28 3 3 0USD/CNY -157 -353 45% (2) 6.82 -1 1 2USD/EUR -340 -674 50% 1.05 8 10 2USD/MXN -66 -135 49% (2) 21.01 3 3 0USD/THB -36 -79 45% 34.69 1 1 0Total USD -786 -1,525 14 19 5Total -899 -1,759 13 20 7(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2023.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates.In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.December 31, 2021\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of the of exposure exchange rate hedge hedging instrument (1)the instru-risk exposurehedgedper risk categoryreserve (1)ment\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets Liabilities (3)Cash \ufb02ow hedges - Forecasted sales and purchases\ue61fJPY/EUR -45 -110 41% \ue61f 130.80 1(2)JPY/USD -31 -64 48%111.66 1 1Total JPY -76 -174 \ue61f \ue61f \ue61f 1 1(2)USD/BRL -146 -194 75%5.26(2)USD/CNY -122 -225 54%6.58 3 3USD/EUR -314 -634 50% \ue61f 1.18 12 12(2)USD/MXN -40 -89 45%21.73 2 2USD/THB -20 -44 45% \ue61f 32.51 1 1Total USD -642 -1,187 \ue61f \ue61f \ue61f 17 4 13Total -718 -1,361 \ue61f \ue61f \ue61f 18 5 13(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2022.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Interest rate risksSee the Financial risk in the Management of risks section of this annual report for additional information on the interest rate risks management.Interest rate risk is managed at Group level.The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and \ufb02oating interest rates. Interest rate risk is managed at Group level by maintaining an appropriate mix between fixed and \ufb02oating rate borrowings.Interest rate exposure by currency is summarized below:In \u20ac million December 31, 2022 December 31, 2021Currency Fixed rate Floating rate Total Fixed rate Floating rate TotalFinancial debt \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR -1,642 -32 -1,673 -1,923 -18 -1,941USD -1,153 -11 -1,163 -1,246 -23 -1,269BGN 0 -33 -33 0 -4 -5SAR 0 0 0 \ue61f -18 -18INR -11 -6 -17 -39 0 -39KRW -19 -7 -26 -21 -1 -22THB -12 0 -12 -11 0 -11BRL -12 0 -12 -9 -2 -11Other -22 -1 -23 -28 -4 -32Total -2,870 -90 -2,959 -3,277 -71 -3,349Cash and cash equivalents \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR \ue61f 201 201 \ue61f 206 206USD \ue61f 320 320 \ue61f 458 458CAD \ue61f 53 53 \ue61f 5 5THB \ue61f 28 28 \ue61f 36 36SAR \ue61f 11 11 \ue61f 15 15BRL \ue61f 177 177 \ue61f 53 53CNY \ue61f 22 22 \ue61f 35 35KRW \ue61f 7 7 \ue61f 7 7JPY \ue61f 30 30 \ue61f 33 33Other \ue61f 83 83 \ue61f 93 93Total \ue61f 932 932 \ue61f 941 941Other financial instruments \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fCNY \ue61f 43 43 \ue61f 70 70EUR \ue61f 185 185 \ue61f 160 160SAR \ue61f 4 4 \ue61f 21 21Other \ue61f 4 4 \ue61f 8 8Total \ue61f 236 236 \ue61f 259 259\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fTotal -2,870 1,078 -1,791 -3,277 1,128 -2,149At the end of 2022, approximately \u20ac2.87 billion of the Group\u2019s gross debt was at fixed-rate, and is largely comprised of: \u00b7 Senior EUR Bonds for a total of \u20ac1,100 million maturing in 2027 and 2029 (carrying amount of \u20ac1,094 million); \u00b7 Remaining portion (US$ 163 million) of the US$ Senior Bonds 2025 of US$ 250 million (carrying amount of \u20ac152 million); \u00b7 Senior US$ Bond for a total of US$ 800 million (carrying amount of \u20ac748 million); \u00b7 IFRS 16 lease liability for a total of \u20ac524 million (carrying amount of \u20ac524 million).The \ufb02oating rate debts that are subject to interest rate swaps are discussed below. The impact of interest rate volatility at the end of 2022 compared to 2021 is the following:Sensitivity to a + 100bp movement in Sensitivity to a - 100bp movement EUR market interest ratesin EUR market interest ratesIn \u20ac million 2022 2021 2022 2021Profit or loss -1 0 1 0The sensitivity to interest rates\u2019 volatility remains insignificant at the end of 2022 compared to 2021 as the \ufb02oating rate debt is very limited.Interest rate risk hedged by instrument accounted for as held for tradingIn \u20ac million Notional amount Fair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021Held for trading 0 18Total 0 18The notional amount reported in 2021 under \u201cheld for trading\u201d is mainly explained by a cross currency swap contracted in May 2017 and settled in the course of 2022 to mitigate the volatility (forex and interest rate) of the external financing set up for the Group\u2019s HPPO joint operation (Saudi Hydrogen Peroxide Company) 50/50 with Sadara in Saudi Arabia (notional amount \u20ac18 million corresponding to 50%). Interest rate risk hedged by instrument accounted for as a hedging instrument in a cash \ufb02ow hedgeIn 2022, there are no outstanding interest rate instruments accounted for under cash \ufb02ow hedges.\ue61fOther market risks\u2014 Utility and CO2 price risksThe Group purchases a large portion of its coal, gas and electricity needs in Europe and the United States based on \ufb02uctuating liquid market indices. Moreover, the Group purchases raw materials with a price formula referring to market indices (e.g. benzene). In order to reduce the cost volatility, the Group has developed a policy for exchanging variable price against fixed price through derivative financial instruments. Most of these hedging instruments can be documented as hedging instruments of the underlying purchase contracts. Utility purchase contracts at fixed price with a physical delivery for use in the Group's operations are qualified as own use contracts and constitute a natural hedge. Those have not been included in this note. Similarly, the Group's exposure to CO price is partially hedged by forward purchases of European Union Allowances (EUA). In 2021, forward purchases 2with physical delivery for use in the Group's operations were qualified as own use contracts (not derivatives). In 2022, in view of both increased volatility in energy and CO markets and the plan to separate Solvay SA into two independent groups, the Group reconsidered the conditions of the own use 2exemption. Accordingly the entire portfolio of CO emission rights forward purchases has been accounted for at the end of Q2 2022 in accordance with 2the general rules of IFRS\ue61f9, and a profit of \u20ac322 million has been classified as \u201cOther operating gains and losses\u201d. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.Finally, some exposure to gas, coal and electricity prices may arise from the production of electricity on Solvay sites (mostly from cogeneration units in Europe), which can be hedged by means of forward purchases and forward sales or optional schemes. In this case, cash \ufb02ow hedge accounting is applied.Financial hedging of utility and CO emission rights price risks is managed centrally by Energy Services on behalf of the Group entities.2Energy Services also carries out trading transactions with respect to utility and CO.2The following tables detail the notional principal amounts and fair values of utility and CO derivative financial instruments outstanding at the end of the 2reporting period:Held for trading Notional amount of Notional amount of the instrument Fair value of the Fair value of the (1)the instrument(in units)instrument - Assetinstrument - LiabilityDecember 31 2022 2021 2022 2021 2022 2021 2022 2021In \u20ac million (except where indicated)Coal \ue61f Tons \ue61fPower 922 1,189 7,318,874 21,005,859 MWh 307 764 -306 -781Standard Quality Gas 619 613 13,372,959 27,701,363 MWh 347 434 -282 -437CO10 11 707,550 206,294 Tons 21 4 -46 -52Total 1,550 1,813 \ue61f \ue61f 675 1,202 -634 -1,223(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.The amounts presented in the tables hereafter include hedging needs of the GBUs of the Group that are sourced through Energy Services, and not the full Group utility hedging needs.December 31, 2022\ue61fCash \ufb02ow Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair value Fair hedgeamount amount of tional amount tage of hedge \ufb02ow of the in-value of the the instru-amount of the risk expo-price hedge strument of the instru-ment (in of the exposure (in sure per risk re-- Assetinstru- (1) mentunits)risk ex-units)hedgedcatego-servement posurery- Lia-bilityIn \u20ac million (except where indicated)\ue61fBenzeneCoalEUR/Power 154 1,078,973 MWh 702 3,505,469 MWh 31% 13271 40 -111MWhStandard Quality EUR/330 13,525,810 MWh 1,650 34,722,420 MWh 39% 33-156 240 -84GasMWhCO2368 5,440,050 Tons 1,150 24,096,508 Tons 45% 61 EUR/Tons 152 142 -26Total 899 67 422 -221(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.December 31, 2021Cash \ufb02ow hedge Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair Fair amount amount of tional amount tage hedge \ufb02ow value value of the the instru-amount of the risk of ex-price hedge of the of the instru-ment (in of the exposure (in posure per risk re-instru-instru- (1) mentunits)risk ex-units)hedgedcatego-servement - ment - posureryAssetLiabilityIn \u20ac million (except where indicated)\ue61fBenzene 1 1,477 Tons 1 1,479 Tons 100% 556 EUR/tonCoal 17 243,000 Tons 62 702,041 Tons 35% 77 USD/ton 5 6 -1Power 154 2,506,335 MWh 607 3,591,600 MWh 70% 62 EUR/MWh -270 1 -271Standard Quality 254 13,648,389 MWh 954 24,096,508 MWh 57% 19 EUR/MWh 273 291 -18GasTotal 426 \ue61f \ue61f 1,625 \ue61f \ue61f \ue61f \ue61f \ue61f 8 298 -290(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates. \u00b7 In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.In the wake of the European energy crisis impacting gas consumption in several countries and due to the European Union's sanctions on the sourcing of gas and coal from Russia, the Group revised the expected activity of several of its cogeneration units in Europe in Q3 2022 with a view to both preserving business continuity and reducing gas consumption. These developments triggered the need to reassess the probability and conditions of future energy consumption at each site when updating the Cash Flow Hedge (CFH) documentation. As part of this reassessment, the Group identified certain hedges for which the underlying future energy purchases are no longer highly probable (but still expected to occur) or subject to modified purchasing conditions, resulting in those hedges ceasing to meet the qualifying criteria for CFH accounting during Q3 2022. The discontinuation of hedge accounting resulted in a favorable \u20ac39 million accumulated mark-to-market that will remain in Other Comprehensive Income with future recycling to the consolidated income statement as the underlying transactions occur (\u20ac18 million in 2022, \u20ac18 million in 2023).Fair value hedgeOn December 31, 2022, the Group covers a part of its CO emission rights in inventory by forward sales of CO emission rights to a related party. The 22Group qualifies this hedging strategy as Fair value hedge. The change in fair value of forward sales are accounted in profit and loss, concomitantly with the revaluation of the CO emission rights held in inventory.2The Group has established a 1:1 hedge ratio for the underlying risk of the forward sales of CO emission rights to the related party that is identical to the 2hedged risk component.\ue61fThe impact of the hedging instrument on the statement of financial position as at December 31, 2022 is, as follows:December 31, 2022Balance sheet Change in fair value used for Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets Liabilities\ue61f In Tons In \u20ac million In \u20ac million \ue61f In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f\ue61f\ue61f \ue61fHedgeCO emission Financial 286,500 1\ue61f-6\ue61f-6rights forwardsinstrumentDecember 31, 2022Balance sheet Change in fair value used for \ue61f Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets LiabilitiesIn Tons In \u20ac million In \u20ac million In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fHedgeCO emission 286,500 -1 7 \ue61f Inventories 6 \ue61frights forwardsThe sensitivities of commodity derivative financial instruments as of December 31, 2022 are presented below.The sensitivities were defined based on the price levels and volatility levels of each commodity. These assumptions do not constitute an estimation of future market prices and the sensitivities presented are not representative of future changes in Solvay's equity and results. \ue61fDecember 31, 2022Price change Other comprehensive income Profit or lossIn \u20ac millionNatural gas +10\u20ac/MWh -109 - Natural gas -10\u20ac/MWh 109 - Electricity +30\u20ac/MWh 32 1 Electricity -30\u20ac/MWh -32 -1CO Emission rights +5\u20ac/T 28 -2CO Emission rights -5\u20ac/T -28 -2Performance Share Units Plan (PSU) risk on Solvay share priceIn order to neutralize the volatility of the Solvay share price, which will impact the liability valuation relating to the cash settled PSU plans (with related employer charges), the Group entered into equity swaps covering approximately 100% of the risk. In 2022, a liability of \u20ac39 million, recognized for 2020 and 2021 PSU plans (in 2021, \u20ac24 million for the 2020 and 2021 PSU plans) corresponds to the best estimate of the amount due at maturity.Credit riskSee the Financial risk in the Management of risks section of this annual report for additional information on credit risk management. The Group continuously monitors the credit risk of important business partners. The Group engages in transactions only with financial institutions with a good credit rating. The Group monitors and manages exposures to financial institutions within approved counterparty credit limits and credit risk parameters in order to mitigate the risk of default. For financial guarantees, see note F36 Contingent assets, liabilities and financial guarantees.The Group recognizes expected credit losses on all of its trade receivables: it applies the simplified approach and recognizes lifetime expected losses on all trade receivables, using a provision matrix in order to calculate the lifetime expected credit losses for trade receivables, using historical information on defaults adjusted for the forward-looking information. The Group classifies the customers and their related receivables in various rating classes, based on the risks\u2019 grading attributed to the customers and on the aging balance of receivables. As such, for all receivables overdue below six months, the Group considers percentages within a range between 0.005% and 4.204%, depending on the rating class. For all receivables overdue in excess of six months, the Group considers a rate of 50% or of 100%, depending on the rating class. The customer\u2019s grading is reviewed annually for customers assessed as low risk profile, and every six months for customers assessed as higher risk profile. There is no significant concentration of credit risk at Group level because the receivables\u2019 credit risk is spread over a large number of customers and markets.The ageing of trade receivables, financial instruments - operational, loans and other non-current assets is as follows:\ue61f \ue61f With expected loss allowance, not credit-impairedDecember 31, 2022In \u20ac millionTotal Credit-not past less than between 30 between 60 and more than 90 impaireddue30 days and 60 days 90 days past duedays past duepast duepast dueTrade receivables 2,098 68 1,986 33 6 1 3Trade receivables - allowance -72 -67 -2 0 \ue61f \ue61f -2Trade receivables - net 2,026 1 1,984 33 6 1 1Financial instruments - 1,125 \ue61f 1,125 \ue61f \ue61f \ue61f \ue61foperationalLoans and other non-current assets 312 12 300 0 \ue61f \ue61f \ue61fLoans and other non-current assets -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61f- allowanceLoans and other non-current 301 0 300 0 0 0 0assets - netTotal 3,452 1 3,410 33 6 1 1The Loans and other non-currents assets do not include the long-term inventory balance.December 31, 2021\ue61f With expected loss allowance, not credit-impairedIn \u20ac millionTotal Credit-im-not past less than between 30 between 60 more than paireddue30 days and 60 days and 90 days 90 days past duepast duepast duepast dueTrade receivables 1,857 50 1,765 36 2 1 3Trade receivables - allowance -51 -49 -2 \ue61f \ue61f \ue61f -1Trade receivables - net 1,805 2 1,763 36 2 1 2Financial instruments - operational 1,513 \ue61f 1,513 \ue61f \ue61f \ue61f \ue61fLoans and other non-current assets 511 11 500 0 \ue61f \ue61f \ue61fLoans and other non-current assets - -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61fallowanceLoans and other non-current assets 500 0 500 0 0 0 0- netTotal 3,818 2 3,776 36 2 1 2The table below presents the allowances on trade receivables:In \u20ac million2022 2021January 1 -51 -39Additions -22 -19Uses 2 5Reversal 1 2Currency translation differences -2 0December 31 -72 -51Liquidity riskSee the Financial risk in the Management of risks section of this annual report for additional information on the liquidity risk management.Liquidity risk relates to Solvay\u2019s ability to service and refinance its debt (including notes issued) and to fund its operations.This depends on its ability to generate cash from operations and not to overpay for acquisitions.The Finance Committee gives its opinion on the appropriate liquidity risk management for the Group\u2019s short, medium and long term funding and liquidity management requirements.The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash \ufb02ows, and by matching the maturity profiles of financial assets and liabilities.The Group staggers the maturities of its financing sources over time in order to limit amounts to be refinanced each year.The following tables detail the Group\u2019s remaining contractual maturity for its financial liabilities with contractual repayment periods.\ue61fThe tables have been prepared using the discounted cash \ufb02ows of financial liabilities, based on the earliest date on which the Group can be required to pay. The following tables present discounted amounts (carrying amounts):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,435 399 10 1,423 604Leasing debt 524 111 90 160 164Total 6,386 3,646 178 1,781 782In \u20ac million December 31, 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,844 676 187 873 1,108Leasing debt 505 97 70 159 179Total 7,320 4,413 292 1,278 1,336The following tables present undiscounted amounts (nominal value):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,444 399 9 1,428 608Leasing debt 524 111 90 160 164Total 6,395 3,646 178 1,786 785Interests on financial debt and lease liabilities 321 78 73 122 48Total out\ufb02ows of cash 6,717 3,724 251 1,908 833\u20ac million 31 December 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,856 677 188 877 1,115Leasing debt 505 97 70 159 179Total 7,333 4,414 293 1,282 1,343Interests on financial debt and lease liabilities 379 86 74 158 62Total out\ufb02ows of cash 7,712 4,500 367 1,439 1,405Trade payables include \u20ac172 million (2021: \u20ac198 million) due to suppliers that have signed up for a supply chain financing program, under which the suppliers can elect to receive a discounted early payment from the partner bank rather than being paid in line with the agreed payment terms. If the option is taken, the Group\u2019s liability is assigned by the supplier to the partner bank. The value of the Group's liability remains unchanged. The Group assesses each arrangement against indicators to determine if the liabilities which suppliers have sold to the partner bank under the supplier financing scheme continue to meet the definition of trade payables or should be classified as financial debt. On December 31, 2022 and 2021, the liabilities met the criteria of Trade Payables.Solvay\u2019s liquidity amounts to \u20ac6.7 billion including \u20ac932 million of cash and cash equivalents on the statement of financial position and \u20ac\ue61f5.8 billion of committed fully undrawn credit facilities (\u20ac2.9 billion term loan in the context of the separation plan, \u20ac2 billion multilateral RCF due 2024, and \u20ac0.9 billion bilateral RCF, largely multi-year) unused at the end of December 2022.In addition, Solvay has access to a Belgian Treasury Bill program for \u20ac1.5 billion and, alternatively, to a US commercial paper for US$ 500 million (no outstanding balance for both on December 31, 2022). The two programs are covered by back-up credit lines.\ue61fNOTE\ue61fF33NET INDEBTEDNESSThe Group\u2019s net indebtedness is the balance between its financial debts and other financial instruments, and cash and cash equivalents.December 31, 2022 December 31, 2021In \u20ac millionFinancial debt 2,959 3,349Cash and cash equivalents -932 -941Other financial instruments -236 -259Net indebtedness 1,791 2,149The decrease in the net indebtedness is mainly due to the strong free cash \ufb02ow generation.\ue61f\ue61fSolvay Investment Grade rating is Baa2/P2 (stable outlook) with Moody\u2019s and BBB/A2 (negative outlook) with Standard & Poor\u2019s (upon the Solvay announcement of March 15, 2022 indicating the plans to separate itself into two independent companies).Financial debt: main borrowings December 31, 2022 December 31, 2021In \u20ac million (except where indicated) Nominal Coupon Maturity Secured Amount Fair Amount at Fair amountat avalueamortized valuemortized costcostSenior \u20ac notes 1.625% 2022 No 377 382Senior US$ note Cytec Industries Inc. (issuance 3.5% 2023 No 172 177US$ 400 million)Senior US$ note Cytec Industries Inc. (issuance 153 3.95% 2025 No 152 147 143 153US$ 250 million)Senior US$ notes (144A;US$ 800 million) 750 4.45% 2025 No 748 721 704 769Senior \u20ac notes 500 2.75% 2027 No 497 482 497 564Senior \u20ac notes 600 0.500% 2029 No 597 479 596 593Total 1,994 1,829 2,489 2,638There are no instances of default on the above-mentioned financial debts. There are no financial covenants, neither on Solvay SA, nor on any of the Group\u2019s holding companies.In 2022, the senior EUR bond (\u20ac378 million) was fully repaid in September as well as the Cytec bond (US$ 196 million) in December.Other financial instrumentsIn \u20ac million December 31, 2022 December 31, 2021Non-current other financial instruments 30 30Current other financial instruments 206 229Currency swaps 1 4Other marketable securities > 3 months 43 70Other current financial assets 162 155Other financial instruments 236 259The other marketable securities > 3 months include the bank drafts position.The other current financial assets mainly include margin calls of Energy Services for instruments with a negative fair value, and represent collateral for the obligations. Cash and cash equivalentsIn \u20ac million December 31, 2022 December 31, 2021Cash 630 620Term deposits 303 320Cash and cash equivalents 932 941By their nature, the carrying amount of cash and cash equivalents is equal to, or a very good proxy of, its fair value. Changes in financial debt and in other financial instruments arising from financing activities2021 2022In \u20ac million Total Cash \ufb02ows Cash \ufb02ows Changes Changes Other in Transfer Payment Other Total from from in foreign in other financing from non-of lease increase of repayment exchange current cash current to liabilities borrowings of rates financial \ufb02ows current borrowings assets Bonds 2,112 3 65 -186 1,994Other non-current debts 55 24 -32 2 -9 3 42Long term leasing debt 409 10 -125 119 413Non-current financial 2,576 27 -32 77 -320 121 2,450debtCurrent financial debt 773 222 -764 3 128 320 -113 -59 510Total financial debt 3,350 248 -796 80 128 -113 63 2,960Other non-current -30 -30financial instrumentsCurrency swaps -4 3 -1Other marketable-70 1 26 -43 securities > 3 monthsOther current financial -155 -2 1 -5 -162assetsOther financial -229 -1 27 -2 -206instrumentsTotal cash \ufb02ow -310 248 -796 79 27 128 -113 61 -366The financial debt decreased from \u20ac3,350 million at the end of 2021 to \u20ac2,960 million at the end of 2022.The non-current financial debt decreased by \u20ac(127) million, mainly resulting from: \u00b7 the transfer to current financial debt for \u20ac(320) million (mainly explained by the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186)\ue61fmillion and IFRS 16 leases for \u20ac(125) million); \u00b7 the change in foreign exchange rates for \u20ac77 million (significant impact of \u20ac65 million on senior bonds in USD); \u00b7 \u20ac119 million in \u201cOther\u201d mainly relates to leases that commenced during the year, as well as lease modifications.The current financial debt decreased by \u20ac(263) million, mainly in short term financial debt: \u00b7 the repayment in September 2022 of \u20ac(378) million for the remaining portion of the \u20ac750 million bonds and the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186) million; \u00b7 the transfer from non-current financial debt to current for \u20ac320 million (mainly explained by the Cytec bond US$ 196 million early repayment in December\ue61f2022 for \u20ac186 million and IFRS 16 leases for \u20ac125 million); \u00b7 the increase and decrease of borrowings is mainly explained by the issuance of commercial paper in June 2022 for \u20ac80 million, fully repaid in September\ue61f2022; and by short-term financing needs in Bulgaria and India; \u00b7 the increase of \u20ac128 million of margin calls on hedging instruments as part of Energy Services\u2019 activities; \u00b7 the repayment of short term lease obligations under IFRS 16 of \u20ac(113) million. The other financial instruments decreased by \u20ac23 million, mainly for the collateral related to the margin calls on energy services (see note F33 Net indebtedness), following the increase in the energy and gas prices. NOTE\ue61fF34OTHER LIABILITIES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021Wages and benefits debts 371 303VAT and other taxes 184 153Social security 51 58Financial instruments - operational 676 1,350Insurance premiums 15 19Advances from customers 97 91Other 106 76Other current liabilities 1,499 2,051Financial instruments \u2013 operational include held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). MISCELLANEOUS NOTESNOTE\ue61fF35COMMITMENTS TO ACQUIRE PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETSIn \u20ac million December 31, 2022 December 31, 2021Commitments to acquire property, plant and equipment and intangible assets 457 301The amount mainly relates to commitments for the acquisition of property, plant and equipment. The increase in 2022 over the prior year is mainly explained by the planned purchase of the new Solvay Group headquarters in Belgium as well\ue61fas the acquisition of industrial equipment for the extension of the Tavaux site in France.NOTE\ue61fF36CONTINGENT ASSETS, LIABILITIES AND FINANCIAL GUARANTEESAccounting policyA contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Group.Contingent assets are not recognized in the consolidated financial statements since this may result in the recognition of income that may never be realized. However, when the realization of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate. Contingent assets are assessed continually to ensure that developments are appropriately re\ufb02ected in the consolidated financial statements. If it has become virtually certain that an in\ufb02ow of economic benefits will arise, the asset and the related income are recognized in the consolidated financial statements of the period in which the change occurs. If an in\ufb02ow of economic benefits has become probable, the Group discloses the contingent asset.A contingent liability is:(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or(b) a present obligation that arises from past events but is not recognized because:(i) it is not probable that an out\ufb02ow of resources embodying economic benefits will be required to settle the obligation; or(ii) the amount of the obligation cannot be measured with sufficient reliabilityContingent liabilities are not recognized in the consolidated financial statements, except if they arise from a business combination. They are disclosed unless the possibility of an out\ufb02ow of economic benefits is remote.Financial guarantees are contracts that require the Group to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.In order to avoid double counting, only guarantees in excess of liabilities recognized or disclosures made elsewhere in the Group's consolidated financial statements are disclosed in this note.\ue61f Regarding financial guarantees, all financial guarantees of the Group are presented in this note.In \u20ac million December 31, 2022 December 31, 2021Contingent assets 91 91Financial guarantees Rusvinyl 0 83Guarantees for pensions 378 348Environmental contingent liabilities 315 301Contingent liabilities 693 733Contingent AssetFollowing an arbitration procedure that began in 2012, on June 22, 2021 the ICC Arbitration Court in Geneva (CH) issued a partial award in favor of Solvay Specialty Polymers Italy SpA, ordering Edison S.p.A. (Edison) to pay \u20ac91.632 million for the losses, damages and costs incurred up to the end of 2016 in relation to certain environmental issues at the Spinetta Marengo and Bussi sites, previously owned and operated by (Mont)Edison SpA and Ausimont SpA. A further phase of the arbitration proceeding, expected to end in 2024, will define the quantification of the additional losses, damages and costs from 2017 onwards, as well as the interests applicable to the amount awarded and the costs of litigation, to be reimbursed to Solvay Specialty Polymers Italy SpA. No income was recognized during either 2021 or 2022 in relation to the partial award, pending Edison\u2019s appeals against the enforcement of the partial award.On January 23, 2023, the Group received a favorable ruling from the Court of Appeal of Milan which rejected Edison's appeal against the enforcement of the partial award, making it definitively enforceable in Italy.\ue61f On February 8, 2023, Edison settled the \u20ac91.632 million partial award in full with Solvay.\ue61f Contingent LiabilitiesThe financial guarantees related to Rusvinyl, the joint venture with SIBUR for the operation of a PVC plant in Russia were released in Q3 2022 following the full repayment of Rusvinyl financial debt. The guarantees for pensions are related to the main UK Pension Funds (\u20ac358 million) \u2013 See note F31.B.2. Description of obligations. Such corresponds to the amount by which the guarantee exceeds the recognized pension liability (as at December 31, 2022) or the recognized plan assets surplus as at (December 31, 2021). This guarantee applies to the pension liability measured based on a local UK regulatory basis (prudential basis) plus an allocation for market risk, which is higher when compared to the IAS\ue61f19 methodology. The probability of the guarantees being called is considered to be highly remote.Contingent liabilities of \u20ac315 million above relate to environmental remediation matters that can be estimated with sufficient reliability.Generally, in line with good business practice, we are not reporting any pending or threatened proceeding, which has not matured, and where the probability of existing or future exposure is unlikely or uncertain, where financial impact is not estimable and for which we are not able to quantify contingent liabilities.In the United States, Solvay Specialty Polymers USA, LLC (SpP) is a defendant in 35 separate individual and class action lawsuits relating to its historical use of per- and poly\ufb02uoroalkyl substances (PFAS). The vast majority of these cases (30) are pending in the federal and state courts in the state of New Jersey, in the US, and the majority (27) are claims by private plaintiffs seeking medical monitoring or compensation for alleged personal injury or other alleged economic loss. Three (3) of the cases involve civil claims by separate US state governmental authorities\u2014New Jersey, Michigan and Illinois\u2014seeking various damages for alleged violations of state environmental laws, including natural resource damages. The State of New Jersey also seeks the environmental cleanup of PFAS pollution allegedly caused by a single operating facility of the subsidiary in New Jersey. Two (2) cases relate to allegations that contamination from the same operating facility caused contamination to a local municipal well. Finally, three (3) of the cases allege that products purchased from the subsidiary caused contamination elsewhere. Overall, the number of these cases remains low in comparison to other industry participants. Solvay continues to dispute the merits of these claims and defend itself accordingly. In all of these cases, the plaintiffs have the burden of proof against all defendants. See note F31.B Provisions Other than Employee Benefits for additional information. In Italy, there are several pending litigations: \u00b7 (a) With reference to the Rosignano industrial site, certain criminal preliminary investigations continue to be pending before the Criminal Court of Livorno regarding the alleged contamination of certain areas outside the site;\ue61f \u00b7 (b) With regard to the Spinetta industrial site, in December 2022 the Public Prosecutor Office of the Court of Alessandria closed the preliminary investigations started at the end of 2020 regarding certain alleged environmental violations of two Solvay managers. The Public Prosecutor Office should decide to request the dismissal of this provisional charge or alternatively the case should go to trial by the end of Q1, 2023; \u00b7 (c) With regard to the Bussi industrial site, sold by Solvay in 2016 with the surrounding area sold in 2018, an administrative litigation is pending in relation to the identification of the polluter of the industrial site.\ue61fBased on the overall assessment, including compliance with applicable laws and regulations and the unlikely or uncertain probability of existing or future exposure, as well as undefined financial impact, which is not estimable at this time, no additional provisions have been recorded in association with these litigations and contingent liabilities cannot be quantified.NOTE\ue61fF37RELATED PARTIESBalances and transactions between Solvay\ue61fSA and (a) its subsidiaries and (b) its joint operations for the Group\u2019s share of the respective joint operations, which are related parties of Solvay\ue61fSA, have been eliminated in consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.Sale and purchase transactions In \u20ac million Sale of goods Purchase of goods2022 2021 2022 2021Associates 20 13 -38 -34Joint ventures 31 22 -20 -16Other related parties 91 70 -98 -56Total 142 106 -157 -107In \u20ac million Amounts owed by related parties Amounts owed to related partiesDecember 31 2022 2021 2022 2021Associates 1 4 5Joint ventures 1 1Other related parties 15 16 28 8Total 15 16 34 14Loans to related partiesIn \u20ac million December 31, 2022 December 31, 2021Loans to associates 2 0Loans to other related parties 54 24Total 55 24Loans from other related parties -4 -4Compensation of key management personnelKey management personnel is composed of all members of the Board of Directors and members of the Executive Leadership Team.Amounts due in respect of the year (compensation) and obligations existing at the end of the year in the consolidated statement of financial position:In \u20ac million December 31, 2022 December 31, 2021Wages, charges and short-term benefits 4 3Long-term benefits 1 1Cash-settled share-based payments liability 4 3Total 9 7Expenses of the year:In \u20ac million 2022 2021Wages, charges and short-term benefits -11 -10Termination benefit -5Long-term benefits -2 -2Share-based payments expenses -5 -4Total -18 -21Excluding employer social charges and taxes. Please refer to the Compensation Report for further details.NOTE\ue61fF38DIVIDENDS PROPOSED FOR DISTRIBUTION The Board of Directors will propose to the \u201cGeneral Shareholders\u2019 Meeting\u201d a gross dividend of \u20ac4.05 per share.Taking into account the dividend advance payment distributed in January\ue61f2023 of \u20ac\ue61f1.54 per share, the dividends proposed for distribution, but not yet recognized as a distribution to equity holders amount to \u20ac\ue61f266\ue61fmillion.NOTE\ue61fF39EVENTS AFTER THE REPORTING PERIODAccounting policyEvents after the reporting period which provide evidence of conditions that existed at the end of the reporting period (adjusting events) are recognized in the consolidated financial statements. Events indicative of conditions that arose after the reporting period are non-adjusting events and are disclosed in the notes if material.EdisonSolvay received compensation of \u20ac91.632 million after decisions by the International Chamber of Commerce's arbitration tribunal, the Swiss Supreme Court, and the Milan Court of Appeal, all of which ruled in favor of Solvay. The outcome follows more than 10 years of legal proceedings in relation to Solvay\u2019s claims of environmental breaches by Edison, a subsidiary of EDF, in the context of Solvay's acquisition of the Italian company Ausimont in 2002.The compensation relates to costs, losses and damages suffered by Solvay up to the end of 2016. Additional arbitration procedures are currently ongoing regarding costs, losses and damages suffered by Solvay from January 2017 onwards. Solvay is confident in the merits of its claim for additional\ue61fsignificant compensation for damage in this second phase and\ue61fexpects proceedings to conclude in 2024.RusvinylOn February 6, 2023, the Group announced that it is in advanced negotiations to divest its stake in Rusvinyl, an independent 50/50 joint venture in Russia, to its joint venture partner, Sibur. In addition to the recently obtained preliminary clearance from Russian governmental authorities, the potential transaction is still subject to several other regulatory approvals.The Group considers that the Rusvinyl joint venture does not meet the criteria under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations to be classified as held for sale at December 31, 2022 nor at the date of authorization of these consolidated financial statements.\ue61fNOTE\ue61fF40LIST OF COMPANIES INCLUDED IN THE CONSOLIDATION SCOPEThe Group consists of Solvay\ue61fSA and a total of 304 investees.Of these 304\ue61finvestees, 152 are fully consolidated, 7 are proportionately consolidated and 23 are accounted for under the equity method, whilst the other 122 do not meet the\ue61fcriteria of significance.In accordance with the concept of materiality, certain companies (Other Investments), which are insignificant, have not been included in the consolidation scope. They are measured at cost and tested for impairment on an annual basis, which is considered a good proxy of their fair value. For more information, refer to Principles of consolidation.List of companies entering or leaving the consolidation scopeCompanies entering the consolidation scopeCountryCompanyCommentsPORTUGAL Solvay Biotecnologia Portugal LDA, Carnaxide New companyLUXEMBOURG Renestia S.A., Capellen New companyUNITED KINGDOM Oldbury Energy Solutions UK Ltd, Oldbury Meets the consolidation criteriaUNITED STATES Energy Solutions US LLC, Breckenridge, TX Meets the consolidation criteriaCompanies leaving the consolidation scopeCountryCompanyCommentsLATVIA Solvay Business Services Latvia SIA, Riga LiquidatedUNITED KINGDOM Penso Holdings Ltd, Coventry LiquidatedUNITED STATES Solvay Soda Ash Expansion JV, Houston, Texas Merged into American Soda LLC\ue61f Solvay Soda Ash Joint Venture, Houston, Texas Merged into American Soda LLCList of subsidiariesIndicating the percentage holding.The percentage of voting rights is very close to the percentage holding. ARGENTINASolvay Argentina SA, Buenos Aires 100Solvay Quimica SA, Buenos Aires 100AUSTRALIA \ue61fCytec Asia Pacific Holdings Pty Ltd, Baulkham Hills 100Cytec Australia Holdings Pty Ltd, Baulkham Hills 100Solvay Interox Pty Ltd, Banksmeadow 100AUSTRIA \ue61fSolvay \u00d6sterreich GmbH, Wien 100BELGIUM \ue61fCarri\u00e8res les Petons S.P.R.L., Walcourt 100Solvay Chemicals International S.A., Brussels 100Solvay Chimie S.A., Brussels 100Solvay Participations Belgique S.A., Brussels 100Solvay Pharmaceuticals S.A. - Management Services, Brussels 100Solvay Specialty Polymers Belgium SA / NV, Brussels 100Solvay Stock Option Management S.P.R.L., Brussels 100BRAZIL \ue61fCogeracao de Energia Electricica Paraiso SA, Brotas 100Rhodia Brasil SA, Sao Paolo 100Rhodia Poliamida Brasil Ltda , Sao Paolo 100Rhopart-Participacoes Servidos e Comercio Ltda, Sao Paolo 100BULGARIA \ue61fSolvay Bulgaria EAD, Devnya 100CANADA \ue61fCytec Canada Inc, Niagara Falls Welland 100Solvay Canada Inc, Toronto 100CHINA \ue61fCytec Industries Co. Ltd, Shanghai 100Cytec Engineered Materials Co. Ltd, Shanghai 100Liyang Solvay Rare Earth New Material Co., Ltd, Liyang City 96.3Rhodia Hong Kong Ltd , Hong Kong 100Solvay (Shanghai) International Trading Co., Ltd, Shanghai 100Solvay (Shanghai) Ltd, Shanghai 100Solvay (Zhangjiangang) Specialty Chemicals Co. Ltd, Suzhou 100Solvay (Zhenjiang) Chemicals Co., Ltd, Zhenjiang New area 100Solvay Chemicals (Shanghai) Co. Ltd, Shanghai 100Solvay China Co., Ltd , Shanghai 100Solvay Fine Chemical Additives (Qingdao) Co., Ltd, Qingdao 100Solvay Hengchang (Zhangjiagang) Specialty Chemical Co., Ltd, Zhangjiagang City 70Solvay Lantian (Quzhou) Chemicals Co., Ltd, Zhejiang 55Solvay Specialty Polymers (Changshu) Co. Ltd, Changshu 100Zhuhai Solvay Specialty Chemicals Co Ltd, Zhuhai City 100CHILE \ue61fCytec Chile Ltda, Santiago 100FINLAND \ue61fSolvay Chemicals Finland Oy, Voikkaa 100FRANCE \ue61fCog\u00e9n\u00e9ration Tavaux SAS, Paris 33.3Rhodia Chimie S.A.S. , Aubervilliers 100Rhodia Energy GHG S.A.S. , Puteaux 100Rhodia Laboratoire du Futur S.A.S. , Pessac 100Rhodia Operations S.A.S. , Aubervilliers 100Rhodia Participations S.N.C. , Courbevoie 100Rhodianyl S.A.S. , Saint-Fons 100Solvay - Op\u00e9rations - France S.A.S., Paris 100Solvay Energie France S.A.S., Paris 100Solvay Energy Services S.A.S. , Puteaux 100Solvay Finance S.A., Paris 100Solvay France S.A. , Courbevoie 100GERMANY \ue61fCavity GmbH, Hannover 100Cytec Engineered Materials GmbH, Oestringen 100European Carbon Fiber GmbH , Kelheim 100Horizon Immobilien AG, Hannover 100Salzgewinnungsgesellschaft Westfalen GmbH & Co KG, Hannover 65German limited partnership, which makes use of the exemptions offered by Section 264(b) of the German Commercial \ue61fCode, not to publish their annual financial statements.Solvay Chemicals GmbH, Hannover 100Solvay Fluor GmbH, Hannover 100Solvay Flux GmbH, Hannover 100Solvay GmbH, Hannover 100Solvay Specialty Polymers Germany GmbH, Hannover 100Solvin GmbH & Co. KG - PVDC, Rheinberg 100Solvin Holding GmbH, Hannover 100INDIA \ue61fSolvay Specialities India Private Limited, Mumbai 100INDONESIA \ue61fPT. Cytec Indonesia, Jakarta 100IRELAND \ue61fSolvay Finance Ireland Unlimited, Dublin 100ITALY \ue61fSolvay Chimica Italia S.p.A., Milano 100Solvay Energy Services Italia S.r.l., Bollate 100Solvay Solutions Italia S.p.A., Milano 100Solvay Specialty Polymers Italy S.p.A., Milano 100JAPAN \ue61fNippon Solvay KK, Tokyo 100Solvay Japan K.K., Tokyo 100Solvay Nicca Ltd, Tokyo 60Solvay Special Chem Japan Ltd, Anan City 100Solvay Specialty Polymers Japan KK, Minato Ku-Tokyo 100LUXEMBOURG \ue61fCytec Luxembourg International Holdings Sarl, Strassen 100Renestia S.A., Capellen 100Solvay Chlorovinyls Holding S.a.r.l., Luxembourg 100Solvay Finance (Luxembourg) SA, Luxembourg 100Solvay Hortensia S.A., Luxembourg 100Solvay Luxembourg S.a.r.l., Luxembourg 100MEXICO \ue61fCytec de Mexico S.A. de C.V., Jalisco 100Solvay Fluor Mexico S.A. de C.V., Ciudad Juarez 100Solvay Mexicana S. de R.L. de C.V., Monterrey 100NETHERLANDS \ue61fCytec Industries B.V., Vlaardingen 100Rhodia International Holdings B.V., Den Haag 100Solvay Chemicals and Plastics Holding B.V., Linne-Herten 100Solvay Chemie B.V., Linne-Herten 100Solvay Solutions Nederland B.V., Klundert 100Solvin Holding Nederland B.V., Linne-Herten 100NEW ZEALAND \ue61fSolvay New Zealand Ltd, Auckland 100PERU \ue61fCytec Peru S.A.C., Lima 100POLAND \ue61fSolvay Poland Sp. z o.o., Gorzow Wielkopolski 100PORTUGAL \ue61fSolvay Biotecnologia Portugal LDA, Carnaxide 100Solvay Business Services Portugal Unipessoal Lda, Carnaxide 100Solvay Peroxidos Portugal Unipessoal LDA , Povoa 100RUSSIA \ue61fSolvay Vostok OOO, Moscow 100SINGAPORE \ue61fRhodia Amines Chemicals Pte Ltd, Singapore 100Solvay Fluor Holding (Asia-Pacific) Pte. Ltd., Singapore 100Solvay Specialty Chemicals Asia Pacific Pte. Ltd., Singapore 100SOUTH KOREA\ue61fCytec Korea Inc, Seoul 100Solvay Chemical Services Korea Co. Ltd, Seoul 100Solvay Silica Korea Co. Ltd, Incheon 100Solvay Specialty Polymers Korea Company Ltd, Seoul 100SPAIN \ue61fSolvay Quimica S.L., Barcelona 100SWITZERLAND \ue61fSolvay Vinyls Holding AG, Bad Zurzach 100THAILAND \ue61fSolvay Asia Pacific Company Ltd, Bangkok 100Solvay (Bangpoo) Specialty Chemicals Ltd, Bangkok 100Solvay (Thailand) Ltd, Bangkok 100Solvay Peroxythai Ltd, Bangkok 100TURKEY \ue61fSolvay Istanbul Kimya Limited Sirketi, Istanbul 100UNITED ARAB EMIRATES \ue61fCytec Nibras llc, Al Ain 100UNITED KINGDOM \ue61fAdvanced Composites Group Investments Ltd, Heanor 100Cytec Engineered Materials Ltd, Wrexham 100Cytec Industrial Materials (Derby) Ltd, Heanor 100Cytec Industrial Materials (Manchester) Ltd, Heanor 100Cytec Industries UK Holdings Ltd, Wrexham 100McIntyre Group Ltd, Watford 100Oldbury Energy Solutions UK Ltd, Oldbury 100Rhodia Holdings Ltd, Watford 100Rhodia International Holdings Ltd, Oldbury 100Rhodia Limited, Watford 100Rhodia Organique Fine Ltd, Watford 100Rhodia Overseas Ltd, Watford 100Rhodia Pharma Solutions Holdings Ltd, Cramlington 100Rhodia Pharma Solutions Ltd, Cramlington 100Rhodia Reorganisation, Watford 100Solvay Interox Ltd, Warrington 100Solvay Solutions UK Ltd, Watford 100Solvay UK Holding Company Ltd, Warrington 100Umeco Composites Ltd, Heanor 100Umeco Ltd, Heanor 100UNITED STATES \ue61fAmerican Soda LLC, Houston, TX 100Ausimont Industries, Inc., Wilmington, Delaware 100CEM Defense Materials LLC, Tempe Arizona 100Cytec Engineered Materials Inc., Princeton New Jersey 100Cytec Global Holdings Inc., Princeton New Jersey 100Cytec Industrial Materials (ok) Inc., Tulsa Oklahoma 100Cytec Industries Inc, Princeton New Jersey 100Cytec Korea Inc., Princeton New Jersey 100Cytec Technology Corp., Princeton New Jersey 100Energy Solutions US LLC, Breckenridge, Texas 100Garret Mountain Insurance Co., Burlington Vermont 100Rocky Mountain Coal Company, LLC, Houston, Texas 100Solvay America Holdings, Inc., Houston, Texas 100Solvay America Inc., Houston, Texas 100Solvay Chemicals, Inc., Houston, Texas 100Solvay Finance (America) LLC, Houston, Texas 100Solvay Fluorides, LLC., Greenwich, Connecticut 100Solvay Holding Inc., Princeton, New Jersey 100Solvay India Holding Inc., Princeton, New Jersey 100Solvay Specialty Polymers USA, LLC, Alpharetta, Georgia 100Solvay USA INC., Princeton, New Jersey 100URUGUAY \ue61fZamin Company S/A, Montevideo 100List of joint operationsIndicating the percentage holding. AUSTRIASolvay Sisecam Holding AG, Wien 75BELGIUM \ue61fBASF Interox H2O2 Production N.V., Brussels 50BULGARIA \ue61fSolvay Sodi AD, Devnya 73.5NETHERLANDS \ue61fMTP HP JV C.V., Weesp 50MTP HP JV Management bv, Weesp 50SAUDI ARABIA \ue61fSaudi Hydrogen Peroxide Co, Jubail 50THAILAND \ue61fMTP HP JV (Thailand) Ltd, Bangkok 50Joint venturesAUSTRALIAAqua Pharma Australia Pty Ltd, Armidale 50BELGIUM \ue61fEECO Holding SA, Brussels 33.3BRAZIL \ue61fPeroxidos do Brasil Ltda, Sao Paulo 69.4CANADA \ue61fAqua Pharma Inc, Saint John 50CHILE \ue61fAqua Pharma Chile Spa, Puerto Montt 50CHINA \ue61fShandong Huatai Interox Chemical Co. Ltd, Dongying 50INDIA \ue61fHindustan Gum & Chemicals Ltd, New Delhi 50IRELAND \ue61fAqua Pharma Ireland Ltd, Dublin 50ITALY \ue61fCogeneration Rosignano S.r.l., Rosignano 25.4Cogeneration Spinetta S.p.a., Bollate 33.3NORWAY \ue61fAqua Pharma Group A.S., Lillehammer 50Aqua Pharma A.S., Lillehammer 50Haugaland Shipping A.S., Haugesund 50RUSSIA \ue61fRusvinyl OOO, Moscow 50TAIWAN \ue61fShinsol Advanced Chemicals Corporation, New Taipei 51UNITED ARAB EMIRATES \ue61fStrata - Solvay Advanced Materials Joint-Venture LLC, Al Ain 50UNITED KINGDOM \ue61fAqua Pharma Technical Ltd, Inverness 50Aqua Pharma Ltd, Inverness 50UNITED STATES \ue61fAqua Pharma U.S. Inc, Kirkland 25AssociatesCHINAQingdao Hiwin Solvay Chemicals Co. Ltd, Qingdao 30FRANCE \ue61fGIE Chime Salindres, Salindres 50INDONESIA \ue61fSolvay Manyar P.T., Gresik 50MEXICO \ue61fSilicatos y Derivados S.A. DE C.V., Estado de Mexico 20",
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"value": "1. CONSOLIDATED FINANCIAL STATEMENTSSolvay (the \u201cCompany\u201d) is a public limited liability company governed by Belgian law and listed on Euronext Brussels and Euronext Paris.The principal activities of the Company, its subsidiaries, joint operations, joint\ue61fventures and associates (jointly the\ue61f\u201cGroup\u201d) are described in note\ue61fF1 Revenue and Segment Information.MAIN EVENTS AND CHANGES IN THE CONSOLIDATION SCOPESeparation planOn March 15, 2022, the Group announced its plans to separate into two independent publicly traded companies: \u00b7 Essential Co would comprise leading mono-technology businesses including Soda Ash, Peroxides, Silica and Coatis, which are reported as theCompany\u2019s Chemicals segment, as well as the Special Chem business. These businesses generated approximately \u20ac6 billion in net sales in 2022. \u00b7 Specialty Co would comprise the Company\u2019s currently reported Materials segment, including its high-growth, high-margin Specialty Polymers, its high-performance Composites business, as well as the majority of its Solutions segment, including Novecare, Technology Solutions, Aroma Performance,and Oil & Gas. These businesses combined generated approximately \u20ac8 billion in net sales in 2022. Each company would have a tailored capital structure that best supports its value creation objectives. Specialty Co would be committed to a strong investment-grade rating. The company would have full financial \ufb02exibility at the time of separation to fund its growth plan. Essential Co would maintain a prudent financial policy to support cash generation. The current investment grade rating of Solvay SA is intended to be preserved until the separation. Solvay SA is committed to offer current USD and EUR senior and hybrid bondholders the option to be transferred to Specialty Co in due time. The dividend at the outset is intended to be aligned with Solvay\u2019s current level. Under the separation plan, Solvay\u2019s shareholders would retain their current shares of Solvay stock, which will continue to be listed on Euronext Brussels and Euronext Paris. The separation would be effected by means of a partial demerger of Solvay whereby the specialty businesses will be spun off to Specialty Co. Solvay shareholders at the time of separation would receive shares in Specialty Co pro rata to their shareholding in Solvay SA. The shares of each company would be expected to be listed on Euronext Brussels and Euronext Paris. The Company expects to structure the separation in a manner that would be tax efficient for a significant majority of shareholders in key jurisdictions. The composition of the Boards and management teams, as well as naming for each company, will be provided at a later date. The transaction is subject to general market conditions and customary closing conditions, including final approval by Solvay\u2019s Board of Directors, consent of certain financing providers and shareholder approval at an extraordinary general meeting, and is expected to be completed in December 2023. The Board of Directors of Solvac, Solvay\u2019s long-standing reference shareholder, has confirmed its support of Solvay\u2019s transaction. Refer to Critical Accounting Judgments on the accounting treatment of the separation plan. Financial implication of energy price volatilityThe volatility in gas and electricity prices experienced by the Group can largely be attributed to the con\ufb02ict in Ukraine, which has impacted the financial statements of Solvay in several ways including: \u00b7 Increased non-core trading revenues (See note F3 Revenue from non-core activities). \u00b7 Substantial \ufb02uctuations in the fair value adjustments of energy-related financial assets and liabilities due to the price volatility in gas and electricity. As the fair value adjustments are on sale and purchase contracts of energy, they impact both assets and liabilities (See note F32 Financial instruments). \u00b7 Increased raw material and logistics costs (See note F2 Consolidated income statement by nature).The Group will continue to monitor the in\ufb02ationary pressure and manage the impacts on the financial statements. Portfolio management On May 4, 2022, Solvay announced the acquisition of the 20% minority stake of AGC in the Soda Ash Joint Venture operated in Green River, WY, USA, building on its leadership position in trona-based soda ash production. At a cash purchase price of US$ 120 million, this transaction will be significantly value accretive to Solvay, with a post-tax cash return on capital in excess of 15%. The transaction was completed on May 4, 2022. Senior BondsOn September 1, 2022, Solvay decided to exercise its residual maturity call option on the 2022 \u20ac-senior bonds 1.625%, ISIN BE6282459609 (outstanding of \u20ac377.5 million out of the initial amount of \u20ac750 million). The exercise was implemented in accordance with the terms and conditions of the related prospectus.On November 22, 2022, Solvay delivered a notice of early redemption in full to holders of Cytec\u2019s US$ 3.50% senior notes due 2023 guaranteed by Solvay with ISIN / CUSIP US23282AJ97 / 232820AJ9 in an outstanding principal amount of US$ 196 million. The redemption was implemented in accordance with the terms and conditions of the bonds. The redemption date was January 1, 2023, however, Solvay was discharged from its liability by the paying agent on December 30, 2022, when the paying agent received the funds.CO emission rights 2Management practices related to hedging of CO exposure were changed in the period, in view of both increased volatility in energy and CO markets 22and the plan to separate Solvay SA into two independent groups. Consequently, the Group has reconsidered the conditions of the own use exemption and accordingly the related portfolio of CO emission rights has been accounted for in accordance with the general requirements of IFRS 9 Financial 2Instruments (IFRS 9) at fair value through profit or loss, and a profit of \u20ac322 million was recognized in \u201cother operating gains and losses\u201d. As of July 1, 2022, the related portfolio of CO emission rights has been designated as hedging instruments in a cash \ufb02ow hedge relationship. (See note F4 Other 2Operating Gains and Losses and F32.B Financial Instruments)MISCELLANEOUS NOTES",
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"pp-value-10-2": {
"value": "1. Basis of preparationThis information was prepared in accordance with European Regulation (EC) 1606/2002 on the application of international accounting standards dated July\ue61f19, 2002. The Group\u2019s consolidated financial statements for the year ended December\ue61f31, 2022 were prepared in accordance with IFRS\ue61f(International Financial Reporting Standards) as published by the International Accounting Standards Board (IASB), and endorsed by the European Union.The accounting standards applied in the consolidated financial statements for the year ended December\ue61f31, 2022 are consistent with those used to prepare the consolidated financial statements for the year ended December\ue61f 31, 2021. The Group has not early adopted any other standards, interpretations or amendments that have been issued but is not yet effective.Standards, interpretations and\ue61famendments applicable for the first time in 2022Below are the standards, interpretations and amendments that became effective as of January 1, 2022 and which are relevant to the Group.Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include costs that relate directly to a contract to provide goods or services including both incremental costs (e.g., the costs of direct labor and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfill the contract and costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendments to IAS 16 The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilitiesThe amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other\u2019s behalf. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.In addition to the standards, interpretations and amendments mentioned above, no other standards, interpretations, or amendments applicable for the first time in 2022 had more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time in 2023Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12 (the \u201cAmendment\u201d). In May 2021, the IASB issued the Amendment, which narrowed the scope of the initial recognition exception under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The Amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability are also recognized for all deductible and taxable temporary differences associated with leases and decommissioning obligations. The application of the Amendment is not expected to have more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time after 2023 The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group\u2019s financial statements and which may have an impact on the Group are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.On September 22, 2022, the IASB issued Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) with amendments that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. The amendments are effective for annual periods beginning on or after January 1, 2024, but are not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on the current accounting practices.On January 23, 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments were originally effective for annual reporting periods beginning on or after January 1, 2022, however, their effective date has been delayed to January 1, 2024 or later, but is not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require reclassification.2. Basis of measurement and presentationThe consolidated financial statements are presented in\ue61fmillions of euros, which is also the functional currency of the parent company.The preparation of the consolidated financial statements requires the use of estimates and assumptions that have an impact on the application of accounting policies and the measurement of amounts recognized in the consolidated financial statements. The areas for which the estimates and assumptions are material with respect to the consolidated financial statements are presented in the section\ue61fCritical accounting judgments and Key sources of estimation uncertainty.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"pp-value-10-3": {
"value": "1. Basis of preparationThis information was prepared in accordance with European Regulation (EC) 1606/2002 on the application of international accounting standards dated July\ue61f19, 2002. The Group\u2019s consolidated financial statements for the year ended December\ue61f31, 2022 were prepared in accordance with IFRS\ue61f(International Financial Reporting Standards) as published by the International Accounting Standards Board (IASB), and endorsed by the European Union.The accounting standards applied in the consolidated financial statements for the year ended December\ue61f31, 2022 are consistent with those used to prepare the consolidated financial statements for the year ended December\ue61f 31, 2021. The Group has not early adopted any other standards, interpretations or amendments that have been issued but is not yet effective.Standards, interpretations and\ue61famendments applicable for the first time in 2022Below are the standards, interpretations and amendments that became effective as of January 1, 2022 and which are relevant to the Group.Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include costs that relate directly to a contract to provide goods or services including both incremental costs (e.g., the costs of direct labor and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfill the contract and costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendments to IAS 16 The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilitiesThe amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other\u2019s behalf. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.In addition to the standards, interpretations and amendments mentioned above, no other standards, interpretations, or amendments applicable for the first time in 2022 had more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time in 2023Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12 (the \u201cAmendment\u201d). In May 2021, the IASB issued the Amendment, which narrowed the scope of the initial recognition exception under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The Amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability are also recognized for all deductible and taxable temporary differences associated with leases and decommissioning obligations. The application of the Amendment is not expected to have more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time after 2023 The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group\u2019s financial statements and which may have an impact on the Group are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.On September 22, 2022, the IASB issued Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) with amendments that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. The amendments are effective for annual periods beginning on or after January 1, 2024, but are not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on the current accounting practices.On January 23, 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments were originally effective for annual reporting periods beginning on or after January 1, 2022, however, their effective date has been delayed to January 1, 2024 or later, but is not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require reclassification.2. Basis of measurement and presentationThe consolidated financial statements are presented in\ue61fmillions of euros, which is also the functional currency of the parent company.The preparation of the consolidated financial statements requires the use of estimates and assumptions that have an impact on the application of accounting policies and the measurement of amounts recognized in the consolidated financial statements. The areas for which the estimates and assumptions are material with respect to the consolidated financial statements are presented in the section\ue61fCritical accounting judgments and Key sources of estimation uncertainty.3. Principles of consolidation3.1. Consolidation scope3.1.1. GeneralThe consolidated financial statements incorporate the financial statements of the Company, and: \u00b7 entities controlled by the Company (including through its subsidiaries) and that hence qualify as subsidiaries (see 3.1.2. below); \u00b7 arrangements over which the Company (including through its subsidiaries) exercises joint control, and that qualify as joint operations (see 3.1.3. below); \u00b7 arrangements over which the Company (including through its subsidiaries) exercises joint control, and that qualify as joint ventures (see 3.1.4. below); \u00b7 entities over which the Company (including through its subsidiaries) has significant in\ufb02uence and that hence qualify as associates (see 3.1.4. below).Where necessary, adjustments are made to the financial statements of the investees so as to align their accounting policies with those of the Group.In accordance with the principle of materiality, certain companies, which are not of a significant size, have not been included in the consolidation scope. Companies are deemed not to be significant when, during two consecutive years, they do not exceed any of the three following thresholds in terms of their contribution to the Group\u2019s accounts: \u00b7 sales of \u20ac\ue61f30\ue61fmillion; \u00b7 total assets of \u20ac\ue61f15\ue61fmillion; \u00b7 headcount of 150 persons.Companies that do not meet these criteria are, nevertheless, consolidated where the Group believes that they have a\ue61fpotential for rapid development, or where they hold shares in other companies that are consolidated based on the\ue61fabove criteria.In the aggregate, the non-consolidated companies have an immaterial impact on the consolidated financial statements of the Group.The full list of companies can\ue61fbe obtained at the Company\u2019s head office.3.1.2. Investments in subsidiariesA subsidiary is an entity over which the Group has control. Control is achieved when the Group has (a) power over an investee, (b) exposure, or rights, to variable returns from its involvement with the investee, and (c) the ability to use its power over the investee to affect the amount of the investor\u2019s returns. To assess whether the Group has control, potential voting rights are taken into account. Subsidiaries are fully consolidated. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition and up to the effective date of disposal.Intra-group transactions, balances, income and expenses are eliminated on consolidation.Non-controlling interests in subsidiaries are presented separately from the Group\u2019s equity. Non-controlling interests are initially measured, either at fair value (full goodwill method), or at the non-controlling interests\u2019 proportionate share in the recognized amounts of the acquiree\u2019s identifiable net assets (proportionate goodwill method). The choice of measurement is made on an acquisition-by-acquisition basis. Subsequent to the acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests\u2019 share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.Changes in the Group\u2019s equity interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the Group\u2019s interests and the non-controlling interests are adjusted to re\ufb02ect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest, and (ii) the previous carrying amount of the assets (including goodwill) and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are accounted for (i.e. Reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities were disposed of. The fair value of any investment retained in the former subsidiary at the date when control is lost is considered to be the fair value on initial recognition for subsequent accounting in accordance with IFRS 9 or, when applicable, the cost on initial recognition of an investment in an associate or joint venture in accordance with IAS\ue61f28 Investments in Associates and Joint Ventures.3.1.3. Investments in joint operationsA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control. In its consolidated financial statements, the Group recognizes its contractual share of the joint operations\u2019 assets, liabilities, revenue and expenses, which is generally aligned with the ownership interest in the joint operations.3.1.4. Investments in associates and\ue61fjoint\ue61fventuresAn associate is an entity over which the Group has significant in\ufb02uence and that is neither a subsidiary, nor an interest in a joint arrangement. Significant in\ufb02uence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control.The results, assets and liabilities of associates and joint ventures are incorporated in the consolidated financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, on initial recognition, investments in associates and joint ventures are recognized in the consolidated statement of financial position at cost, and the carrying amount is adjusted for post-acquisition changes in the Group\u2019s share of the net assets of the associate or joint venture, less any impairment of the value of individual investments. Losses of an associate or joint venture in excess of the Group\u2019s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group\u2019s net investment in the associate or joint venture) are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.Any excess of the cost of acquisition over the Group\u2019s share of the net fair value of the identifiable assets and (contingent) liabilities of the associate or joint venture recognized at the date of acquisition is goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of that investment. Where a Group entity transacts with an associate or joint venture of the Group, profits and losses are eliminated to the extent of the Group\u2019s interest in the relevant associate or joint venture.After application of the equity method, the Group reviews its investments in associates and joint ventures for impairment. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group performs its analysis and calculates any impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss in the consolidated income statement.4. Foreign currenciesThe individual financial statements of each Group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group entity are expressed in euros (EUR), which is the presentation currency of the Group\u2019s consolidated financial statements.In preparing the financial statements of the individual entities, transactions in currencies other than the entities\u2019 functional currency are recognized at the exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the closing rate. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rate when the fair value was measured. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the date of the initial transactions.Exchange differences are recognized in profit or loss in the period in which they arise except for: \u00b7 exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occurin the foreseeable future (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income under \u201ccurrency translation differences\u201d; and \u00b7 exchange differences on transactions entered into in order to hedge certain foreign currency risks (see note F32 Financial instruments and financial risk management for hedge accounting policies). The main exchange rates used are:Year-end rate Average rate1 Euro = December 31, 2022 December 31, 2021 2022 2021Brazilian Real BRL 5.6354 6.3089 5.4391 6.3778Yuan Renminbi CNY 7.4199 7.2188 7.0781 7.6275Pound Sterling GBP 0.8870 0.8401 0.8526 0.8596Indian Rupee INR 88.3019 84.1963 82.6910 87.4271Japanese Yen JPY 140.7248 130.4077 138.0176 129.8783Korean Won KRW 1,349.6641 1,346.4377 1,357.2278 1,353.6608Mexican Peso MXN 20.8811 23.1537 21.1921 23.9889Russian Ruble RUB 77.9167 85.3452 73.7161 87.1511US Dollar USD 1.0674 1.1327 1.0531 1.1827",
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"pp-value-10-4": {
"value": "1. Basis of preparationThis information was prepared in accordance with European Regulation (EC) 1606/2002 on the application of international accounting standards dated July\ue61f19, 2002. The Group\u2019s consolidated financial statements for the year ended December\ue61f31, 2022 were prepared in accordance with IFRS\ue61f(International Financial Reporting Standards) as published by the International Accounting Standards Board (IASB), and endorsed by the European Union.The accounting standards applied in the consolidated financial statements for the year ended December\ue61f31, 2022 are consistent with those used to prepare the consolidated financial statements for the year ended December\ue61f 31, 2021. The Group has not early adopted any other standards, interpretations or amendments that have been issued but is not yet effective.Standards, interpretations and\ue61famendments applicable for the first time in 2022Below are the standards, interpretations and amendments that became effective as of January 1, 2022 and which are relevant to the Group.Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include costs that relate directly to a contract to provide goods or services including both incremental costs (e.g., the costs of direct labor and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfill the contract and costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendments to IAS 16 The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilitiesThe amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other\u2019s behalf. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.In addition to the standards, interpretations and amendments mentioned above, no other standards, interpretations, or amendments applicable for the first time in 2022 had more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time in 2023Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12 (the \u201cAmendment\u201d). In May 2021, the IASB issued the Amendment, which narrowed the scope of the initial recognition exception under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The Amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability are also recognized for all deductible and taxable temporary differences associated with leases and decommissioning obligations. The application of the Amendment is not expected to have more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time after 2023 The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group\u2019s financial statements and which may have an impact on the Group are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.On September 22, 2022, the IASB issued Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) with amendments that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. The amendments are effective for annual periods beginning on or after January 1, 2024, but are not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on the current accounting practices.On January 23, 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments were originally effective for annual reporting periods beginning on or after January 1, 2022, however, their effective date has been delayed to January 1, 2024 or later, but is not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require reclassification.",
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"pp-value-10-5": {
"value": "1. Basis of preparationThis information was prepared in accordance with European Regulation (EC) 1606/2002 on the application of international accounting standards dated July\ue61f19, 2002. The Group\u2019s consolidated financial statements for the year ended December\ue61f31, 2022 were prepared in accordance with IFRS\ue61f(International Financial Reporting Standards) as published by the International Accounting Standards Board (IASB), and endorsed by the European Union.The accounting standards applied in the consolidated financial statements for the year ended December\ue61f31, 2022 are consistent with those used to prepare the consolidated financial statements for the year ended December\ue61f 31, 2021. The Group has not early adopted any other standards, interpretations or amendments that have been issued but is not yet effective.Standards, interpretations and\ue61famendments applicable for the first time in 2022Below are the standards, interpretations and amendments that became effective as of January 1, 2022 and which are relevant to the Group.Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include costs that relate directly to a contract to provide goods or services including both incremental costs (e.g., the costs of direct labor and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfill the contract and costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendments to IAS 16 The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilitiesThe amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other\u2019s behalf. The application of the amendment did not have more than an insignificant impact on the Group\u2019s consolidated financial statements.In addition to the standards, interpretations and amendments mentioned above, no other standards, interpretations, or amendments applicable for the first time in 2022 had more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time in 2023Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12 (the \u201cAmendment\u201d). In May 2021, the IASB issued the Amendment, which narrowed the scope of the initial recognition exception under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The Amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability are also recognized for all deductible and taxable temporary differences associated with leases and decommissioning obligations. The application of the Amendment is not expected to have more than an insignificant impact on the Group\u2019s consolidated financial statements.Standards, interpretations and\ue61famendments applicable for the first time after 2023 The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group\u2019s financial statements and which may have an impact on the Group are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.On September 22, 2022, the IASB issued Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) with amendments that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. The amendments are effective for annual periods beginning on or after January 1, 2024, but are not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on the current accounting practices.On January 23, 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments were originally effective for annual reporting periods beginning on or after January 1, 2022, however, their effective date has been delayed to January 1, 2024 or later, but is not yet endorsed in the EU. The Group is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require reclassification.2. Basis of measurement and presentationThe consolidated financial statements are presented in\ue61fmillions of euros, which is also the functional currency of the parent company.The preparation of the consolidated financial statements requires the use of estimates and assumptions that have an impact on the application of accounting policies and the measurement of amounts recognized in the consolidated financial statements. The areas for which the estimates and assumptions are material with respect to the consolidated financial statements are presented in the section\ue61fCritical accounting judgments and Key sources of estimation uncertainty.3. Principles of consolidation3.1. Consolidation scope3.1.1. GeneralThe consolidated financial statements incorporate the financial statements of the Company, and: \u00b7 entities controlled by the Company (including through its subsidiaries) and that hence qualify as subsidiaries (see 3.1.2. below); \u00b7 arrangements over which the Company (including through its subsidiaries) exercises joint control, and that qualify as joint operations (see 3.1.3. below); \u00b7 arrangements over which the Company (including through its subsidiaries) exercises joint control, and that qualify as joint ventures (see 3.1.4. below); \u00b7 entities over which the Company (including through its subsidiaries) has significant in\ufb02uence and that hence qualify as associates (see 3.1.4. below).Where necessary, adjustments are made to the financial statements of the investees so as to align their accounting policies with those of the Group.In accordance with the principle of materiality, certain companies, which are not of a significant size, have not been included in the consolidation scope. Companies are deemed not to be significant when, during two consecutive years, they do not exceed any of the three following thresholds in terms of their contribution to the Group\u2019s accounts: \u00b7 sales of \u20ac\ue61f30\ue61fmillion; \u00b7 total assets of \u20ac\ue61f15\ue61fmillion; \u00b7 headcount of 150 persons.Companies that do not meet these criteria are, nevertheless, consolidated where the Group believes that they have a\ue61fpotential for rapid development, or where they hold shares in other companies that are consolidated based on the\ue61fabove criteria.In the aggregate, the non-consolidated companies have an immaterial impact on the consolidated financial statements of the Group.The full list of companies can\ue61fbe obtained at the Company\u2019s head office.3.1.2. Investments in subsidiariesA subsidiary is an entity over which the Group has control. Control is achieved when the Group has (a) power over an investee, (b) exposure, or rights, to variable returns from its involvement with the investee, and (c) the ability to use its power over the investee to affect the amount of the investor\u2019s returns. To assess whether the Group has control, potential voting rights are taken into account. Subsidiaries are fully consolidated. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition and up to the effective date of disposal.Intra-group transactions, balances, income and expenses are eliminated on consolidation.Non-controlling interests in subsidiaries are presented separately from the Group\u2019s equity. Non-controlling interests are initially measured, either at fair value (full goodwill method), or at the non-controlling interests\u2019 proportionate share in the recognized amounts of the acquiree\u2019s identifiable net assets (proportionate goodwill method). The choice of measurement is made on an acquisition-by-acquisition basis. Subsequent to the acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests\u2019 share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.Changes in the Group\u2019s equity interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the Group\u2019s interests and the non-controlling interests are adjusted to re\ufb02ect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest, and (ii) the previous carrying amount of the assets (including goodwill) and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are accounted for (i.e. Reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities were disposed of. The fair value of any investment retained in the former subsidiary at the date when control is lost is considered to be the fair value on initial recognition for subsequent accounting in accordance with IFRS 9 or, when applicable, the cost on initial recognition of an investment in an associate or joint venture in accordance with IAS\ue61f28 Investments in Associates and Joint Ventures.3.1.3. Investments in joint operationsA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control. In its consolidated financial statements, the Group recognizes its contractual share of the joint operations\u2019 assets, liabilities, revenue and expenses, which is generally aligned with the ownership interest in the joint operations.3.1.4. Investments in associates and\ue61fjoint\ue61fventuresAn associate is an entity over which the Group has significant in\ufb02uence and that is neither a subsidiary, nor an interest in a joint arrangement. Significant in\ufb02uence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control.The results, assets and liabilities of associates and joint ventures are incorporated in the consolidated financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, on initial recognition, investments in associates and joint ventures are recognized in the consolidated statement of financial position at cost, and the carrying amount is adjusted for post-acquisition changes in the Group\u2019s share of the net assets of the associate or joint venture, less any impairment of the value of individual investments. Losses of an associate or joint venture in excess of the Group\u2019s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group\u2019s net investment in the associate or joint venture) are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.Any excess of the cost of acquisition over the Group\u2019s share of the net fair value of the identifiable assets and (contingent) liabilities of the associate or joint venture recognized at the date of acquisition is goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of that investment. Where a Group entity transacts with an associate or joint venture of the Group, profits and losses are eliminated to the extent of the Group\u2019s interest in the relevant associate or joint venture.After application of the equity method, the Group reviews its investments in associates and joint ventures for impairment. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group performs its analysis and calculates any impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss in the consolidated income statement.4. Foreign currenciesThe individual financial statements of each Group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group entity are expressed in euros (EUR), which is the presentation currency of the Group\u2019s consolidated financial statements.In preparing the financial statements of the individual entities, transactions in currencies other than the entities\u2019 functional currency are recognized at the exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the closing rate. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rate when the fair value was measured. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the date of the initial transactions.Exchange differences are recognized in profit or loss in the period in which they arise except for: \u00b7 exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occurin the foreseeable future (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income under \u201ccurrency translation differences\u201d; and \u00b7 exchange differences on transactions entered into in order to hedge certain foreign currency risks (see note F32 Financial instruments and financial risk management for hedge accounting policies). The main exchange rates used are:Year-end rate Average rate1 Euro = December 31, 2022 December 31, 2021 2022 2021Brazilian Real BRL 5.6354 6.3089 5.4391 6.3778Yuan Renminbi CNY 7.4199 7.2188 7.0781 7.6275Pound Sterling GBP 0.8870 0.8401 0.8526 0.8596Indian Rupee INR 88.3019 84.1963 82.6910 87.4271Japanese Yen JPY 140.7248 130.4077 138.0176 129.8783Korean Won KRW 1,349.6641 1,346.4377 1,357.2278 1,353.6608Mexican Peso MXN 20.8811 23.1537 21.1921 23.9889Russian Ruble RUB 77.9167 85.3452 73.7161 87.1511US Dollar USD 1.0674 1.1327 1.0531 1.18275. Government grantsGovernment grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received.Government grants relating to the purchase of property, plant and equipment are deducted from the cost of those assets. They are recognized in the consolidated statement of financial position at their expected value at the moment of initial recognition. The grant is recognized in profit or loss over the depreciation period of the underlying assets as a reduction of depreciation expense.Other government grants are recognized as income on a systematic basis over the periods in which the related costs, which they are intended to compensate, are recognized. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they become receivable.6. Climate ChangeIn preparing the consolidated financial statements, management has considered the impacts of climate change, particularly in the context of the disclosures included in the Risk Report and Extra-financial Statements and the Group\u2019s progression towards the ambitious 2030 goals to reduce scope 1 and 2 greenhouse gas emissions from our operations by 30%, an annual pace aligned with the Paris Agreement objectives, and to phase-out the use of coal for energy where renewable alternatives exist. In October 2021, the Group also published its ambitions to become carbon neutral by 2040 for all businesses except Soda Ash, which is targeted to be carbon neutral by 2050.Solvay plans to invest up to \u20ac1 billion to reach carbon neutrality by 2040 for all its businesses other than Soda Ash with an additional investment of approximately \u20ac1 billion identified for Soda Ash to pave its path towards full carbon neutrality for the Group before 2050. These investments will be partially supported by non-recourse financing and government subsidies, enabling Solvay to also continue to invest in its growth initiatives. Further studies on technology innovation will determine the future investment needs beyond 2040. Since 2015 the Group has adopted an internal carbon price and it has imputed that as an input cost into all investment decisions, irrespective of prevailing market prices. The internal cost was originally set at \u20ac25 per metric ton in 2015, and was doubled to \u20ac50 in 2019. In 2021 it was then decided to be raised to \u20ac100 per metric ton of CO with implementation in 2022. This approach ensures that all investments contribute positively to the resilience of the Group 2in the face of climate change risk and are also oriented towards achieving carbon neutrality. In addition to the strategic direction, policies and commitments, it is important to note that Solvay is taking concrete actions aligned with its climate change commitments. These are extensively developed in the Sustainability Report. As an example of the Group\u2019s commitment to phase out of coal in the Soda Ash business, several projects were initiated comprising: \u00b7 The construction of two waste-wood boilers accounted for as finance leases in Rheinberg, Germany; the first of the two boilers was commissioned in 2021.. \u00b7 In Devnya, Bulgaria, a variety of renewable sources including sun\ufb02ower husk pellets will be used to power production processes at our largest soda ash European site and reduce emissions related to energy production by 20%. \u00b7 Already equipped with a waste to energy power plant since 2006, we recently invested a further \u20ac48 million to modernize our gas cogeneration unit in Bernburg, Germany, to maintain our low CO footprint at the site. 2 \u00b7 In Italy an energy-efficient gas turbine was built at our Rosignano site. By implementing a cogeneration system that combines heat and power generation processes, we were able to keep up standard production capacity with less energy required, lowering the site\u2019s CO emissions by 40%.2 \u00b7 In Green River, Wyoming, USA, our calciners and boilers are switching from coal to gas, a readily-available local resource, which saves 280 kilotons of CO per year. This is in addition to the new project Solvay launched to deploy a new breakthrough technology that will abate greenhouse gas emissions 2originating from Trona mining operations. This will reduce the site\u2019s greenhouse gas emissions by 28% while growing its capacity. It will also make Solvay the first company to implement regenerative thermal oxidation technology to cut emissions from a trona mine. \u00b7 An equity investment at the Dombasle, France, site of which Solvay has a 10% share. The project is valued at approximately \u20ac225 million and is financed largely through non-recourse debt executed in February 2022 and government subsidies. Included in the investment are two refuse derived fuel boilers.When such investments are made, the Group verifies the useful life of the assets that are replaced and adjusts the estimated useful life if necessary. For 2022, no material revisions were needed and there is no indication that any material amounts of existing assets would be impaired as a result of the investment plans in other fuel types in the future. The Group is also actively working on sourcing its energy needs from more environmentally friendly resources including long-term renewable energy generation solutions both onsite and offsite at certain facilities. These include long-term solar and wind power purchase agreements generally accounted for as executory own use contracts. In addition, the Group has entered into long-term contracts to purchase Renewable Energy Certificates, which will cover almost one quarter of the electricity purchased and consumed in the United States. The latter are recorded in operating expenses.Management has also considered the impact of climate change in making some key estimates within the consolidated financial statements, including the execution of the Solvay One Planet strategy, which is included in the budgets, mid-term plan and long-term forecasts, which are used to: \u00b7 estimate future cash \ufb02ows used in impairment assessments of the carrying value of non-current assets (such as intangible assets and goodwill) (see Note F24 Impairment); \u00b7 estimate future profitability used in the assessment of the recoverability of deferred tax assets (see Note F7.C. Deferred taxes in the consolidated statement of financial position), provisions, etc.; \u00b7 estimate the long-term accounting assumptions, including CO emission rights and energy prices for the energy intensive Soda Ash GBU.2The Group\u2019s CO emission rights and energy prices (gas/electricity/coal) are an important element of the cost structure, especially for the Soda Ash 2business. The Group has hedged a significant portion of its expected use through 2030. The hedges were taken into consideration in the goodwill impairment test performed and the long-term assumptions considered the higher capex required by the energy transition of the business after the hedged period. Considering the significant headroom on the Soda Ash CGU, no sensitivity is provided. See Note F24 Impairment. The same exercise was done for the other cash generating units and management believes there are no realistic scenarios regarding climate change today, which would lead to an impairment of these assets. In summary, the Group\u2019s climate change considerations mentioned above did not have a material impact on the financial reporting judgments and estimates during the year. Further, the Group concludes that the climate change risk does not impact the going concern assessment for December 2022. Additional information can be found in Notes F21 Property, Plant and Equipment, F22 Right-of Use Assets and Lease Obligations and F25 Inventories.CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY1. Critical accounting judgmentsOn March 15, 2022, the Group announced its plan to separate into two independent publicly traded companies, Essential Co and Specialty Co. The separation would be effected by means of a partial demerger of Solvay whereby the specialty businesses will be spun off to Specialty Co.\ue61fWhile the Group is actively taking steps to prepare for the partial demerger and\ue61fanticipates that the transaction will be completed in December 2023, the Group considers the specialty businesses to not meet the criteria under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (IFRS 5) to be classified as discontinued operations at December 31, 2022.\ue61fThis judgment is taken on the basis that the consent of certain financing providers and the approval of the shareholders has not yet been obtained. These approvals are anticipated to occur in the course of 2023. Management will further assess the criteria at each reporting period. No other critical accounting judgments have been identified for the year ended December 31, 2022.2. Key sources of estimation uncertaintyImpairmentThe Group performs annual impairment tests on (groups of) CGUs to which goodwill has been allocated, and each time there are indicators that their carrying amount might be higher than their recoverable amount. This analysis requires management to estimate the future cash \ufb02ows expected to be generated by the CGUs and a suitable discount rate in order to calculate present value. The recoverable amount is highly sensitive to discount and growth rates. Further details are provided in note\ue61fF20 Goodwill and Business Combinations and F24 Impairment.Deferred tax assetsDeferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profits will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits.The Group has \u20ac5,203 million (2021: \u20ac6,050 million) of tax losses carried forward for which no deferred tax assets were recognized. These losses relate to subsidiaries that have a history of losses, do not expire, and may not be used to offset taxable income elsewhere in the Group. The subsidiaries do not have any taxable temporary differences that could partly support the recognition of these losses as deferred tax assets. On this basis, the Group has determined that it cannot recognize deferred tax assets on these tax losses carried forward.Further details are provided in Note F7.C. Deferred taxes in the consolidated statement of financial position and F7.D Other Information.Defined benefit obligations - GeneralThe actuarial assumptions used in determining the defined benefit obligations at December\ue61f31 as well as the annual cost can be found in note\ue61fF31.A. Provisions for employee benefits. All main employee benefits plans are assessed annually by independent actuaries. Discount rates and in\ufb02ation rates are defined centrally by management. The other assumptions (such as future salary increases and expected rates of medical care cost increases) are defined at a local level. All plans are supervised by the Group\u2019s central Human Resources department with the help of a central actuary to check the reasonableness of the results and ensure consistency in reporting. All assumptions are reviewed at each reporting date.Further details are provided in note\ue61fF31.A. Provisions for employee benefits.Environmental provisionsEnvironmental provisions are managed and coordinated jointly by the Environmental Rehabilitation department and the Finance department. In case of environmental impacts stemming from historical production activities, generally, no provision is recognized for remediation works beyond the 20 years due to the inherent high level of uncertainty as to the timing and amount.The forecasts of expenses are discounted to their present value. The discount rates fixed by geographical area correspond to the average risk-free rate on 10-year government bonds or the in\ufb02ation rate if higher. These rates are set annually by the Finance Department and can be revised based on the evolution of economic parameters of the country involved. To re\ufb02ect the passage of time, the provisions are increased each year at the discount rates described above.Further details are provided in note\ue61fF31.B. Provisions other than for employee benefits.Provisions for litigationsAny significant litigations (post M&A and other, including threat of litigation) are reviewed by Solvay\u2019s in-house lawyers with the support, when appropriate, of external counsels at least every quarter together with the Finance and Insurance Departments. This review includes an assessment of the need to recognize provisions, disclose contingent liabilities and/or contingent assets. Further details are provided in note\ue61fF31.B. Provisions other than for employee benefits and F36 Contingent assets, liabilities and financial guarantees.Leases \u2013 Identifying whether a contract includes a leaseThe Group enters into various contracts to obtain goods and services. Determining whether those contracts include a lease requires judgment. Elements that are considered include assessing whether or not there is an identified asset. To make the determination the Group considers whether or not it has the right to obtain substantially all of the economic benefit of the asset(s) throughout the period of use. Additionally, the Group assesses the extent of its decision-making rights and the existence of any substantive substitution rights. All facts and circumstances relevant to the assessment are considered and the identification of a lease is determined with the support of the departments that have the relevant knowledge, and which mainly includes the GBU management. Refer to note F22 Right-of-use assets and lease obligations for the leases that were identified by the Group and accounted for in accordance with IFRS 16 Leases.Leases \u2013 Assessment of lease termDetermining the lease term requires judgment. Elements that are considered include assessing the probability that early termination options or extension options will be exercised. All facts and circumstances relevant to the assessment are considered, and the main ones have been described in note F22 Right-of-use assets and lease obligations. Lease terms are determined with the support of the departments that have the relevant knowledge, and that mainly includes the Purchasing department, and the Facilities department.NON-IFRS (UNDERLYING) METRICSIn addition to IFRS accounts, Solvay also presents alternative performance indicators to provide a more consistent and comparable indication of the Group\u2019s underlying financial performance and financial position, as well as cash \ufb02ows. These indicators provide a balanced view of the Group\u2019s operations and are considered useful to investors, analysts and credit rating agencies as these measures provide relevant information on the Group\u2019s past or future performance, position or cash \ufb02ows. These indicators are generally used in the sector it operates in and therefore serve as a useful aid for investors to compare the Group\u2019s performance with its peers.See Glossary for definitions of adjustments (IFRS vs Underlying metrics) and Business Review for more information and reconciliation with IFRS figures.NOTE F1 REVENUE AND SEGMENT INFORMATIONAccounting policyIFRS 15 establishes a five-step model to account for revenue arising from contracts with customers: \u00b7 Identify the contract, \u00b7 Identify the performance obligations, \u00b7 Determine the transaction price, \u00b7 Allocate the transaction price to the performance obligations in the contract, and \u00b7 Recognize revenue when or as the Group satisfies a performance obligation.Under IFRS 15, revenue is recognized at an amount that re\ufb02ects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Sale of goods: Contracts can be short term (including based only on a purchase order) or long term, some have minimum off-take requirements. As the Group is in the business of selling advanced materials and specialty chemicals, contracts with customers generally concern the sale of goods. As a result, revenue recognition generally occurs at a point in time when control of the chemicals is transferred to the customer, generally on delivery of the goods.Distinct elements: a good or service that is promised to a customer is distinct if both of the following criteria are met: (a) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e. The good or service is capable of being distinct); and (b) the Group\u2019s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e. The promise to transfer the good or service is distinct within the context of the contract).The revenue of the Group consists mainly of sales of chemicals, which qualify as separate performance obligations. Value-added services \u2013 mainly customer assistance services \u2013 corresponding to Solvay\u2019s know-how are rendered predominantly over the period that the corresponding goods are sold to the customer. Variable consideration: some contracts with customers provide trade discounts or volume rebates. Trade discounts and volume rebates give rise to variable consideration under IFRS 15, and are required to be estimated at contract inception and subsequently at each reporting date. IFRS 15 requires the estimated variable consideration to be constrained to prevent overstatement of revenue. Moment of recognition of revenue: revenue is recognized when (or as) the Group satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Substantially all revenue stems from performance obligations satisfied at a point in time, i.e. The sale of goods. Revenue recognition for those takes into account the following: \u00b7 The Group has a present right to payment for the asset; \u00b7 The customer has legal title to the asset; \u00b7 The Group has transferred physical possession of the asset; \u00b7 The customer has the significant risks and rewards of ownership of the asset (in this respect, incoterms are considered); and \u00b7 The customer has accepted the asset.Products sold to customers generally cannot be returned, other than for performance deficiencies. Customer acceptance clauses are in many cases a formality that would not affect the Group\u2019s determination of when the customer has obtained control of the goods. Revenue from services is recognized in the period those services have been rendered.The Group sells its chemicals to its customers, (a) directly, (b) through distributors, and (c) with the assistance of agents. When the Group delivers a product to distributors for sale to end customers, the Group evaluates whether that distributor has obtained control of the product at that point in time. No revenue is recognized upon delivery of a product to a customer or distributor if the delivered product is held on consignment. Indicators of consignment inventory include: \u00b7 The product is controlled by the Group until a specified event occurs, such as the sale of the product to a customer of the distributor or until a specified period expires; \u00b7 The Group is able to require the return of the product or transfer the product to a third party (such as another distributor); and \u00b7 The distributor does not have an unconditional obligation to pay for the product (although he might be required to pay a deposit). \u00b7 Agents facilitate sales and do not purchase and resell the goods to the end customer. Warranties: warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Substantially all warranties do not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications, and are hence accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Licensing: In case of performance obligations relation to licensing intellectual property (IP), the Group assesses if it grants a right to access the IP as it exists throughout the license period or a right to use the IP as it exists at the point in time at which the license is granted. If the performance obligation is to grant a right to access, then the related revenue is recognized over the license period; otherwise, it is recognized at a point in time, i.e. when the license period starts or when the customer starts using the IP. The Group assesses if the license provided can be considered as being distinct in the context of the contract. If not, the license will have to be bundled with other goods or services provided in the contract. Currently the Group grants a right to use IP, which means that revenue recognition occurs at a point in time.An Operating Segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity\u2019s chief operating decision maker and for which discrete financial information is available. Solvay\u2019s chief operating decision maker is the Chief Executive Officer.NOTE\ue61fF5 RESULTS FROM PORTFOLIO MANAGEMENT AND MAJOR RESTRUCTURINGS, LEGACY REMEDIATION AND MAJOR LITIGATIONSAccounting policyResults from portfolio management and major restructurings include: \u00b7 gains and losses on the sale of subsidiaries, joint operations, joint ventures, and associates that do not qualify as discontinued operations; \u00b7 acquisition costs of new businesses; \u00b7 one-off operating costs related to internal management of portfolio (carve-out of major lines of businesses); \u00b7 gains and losses on the sale of real estate not directly linked to an operating activity; \u00b7 restructuring charges driven by portfolio management and by major reorganizations of business activities, including impairment losses resulting from the shutdown of an activity or a plant; \u00b7 impairment losses (reversals) resulting from testing of CGUs. Results from legacy remediation and major litigations include: \u00b7 the remediation costs not generated by on-going production facilities (shut-down of sites, discontinued productions, previous years\u2019 pollution); and \u00b7 the impact of significant litigations.Accounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.NOTE\ue61fF7INCOME TAXES IN THE INCOME STATEMENT AND THE STATEMENT OF FINANCIAL POSITIONAccounting policyCurrent taxesThe current tax payable is based on taxable profit of the year. Taxable profit differs from profit as reported in the consolidated income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group\u2019s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.Deferred taxesDeferred taxes are recognized for temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax bases used in the computation of taxable profit.Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.Deferred tax liabilities are generally recognized for all taxable temporary differences. No deferred tax liabilities are recognized following the initial recognition of goodwill. In addition, no deferred tax assets or liabilities are recognized with respect to the initial recognition of an asset or liability in a transaction which is not a business combination and affects neither accounting profit nor taxable profit.Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, joint operations, joint ventures, and associates, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets other than tax loss carryforwards are analyzed on a case by case basis, taking into account all relevant facts and circumstances. For example, a zero taxable profit, after deducting the amounts paid to retirees under a defined benefit plan and for which a deductible temporary difference existed, can justify the recognition of the underlying deferred tax assets. Recognition of deferred tax assets for tax loss carryforwards requires a positive taxable profit during the year that enables the utilization of tax losses that originated in the past. Because of uncertainties inherent to predicting such positive taxable profit, recognition of deferred tax assets from tax loss carryforwards is based on a case by case analysis, which is usually based on five-year profit forecasts, except with respect to any financial company for which ten-year financial profit forecasts are considered highly predictable and are consequently used. The corporate tax reporting team, which monitors the Group deferred tax positions, is involved in assessing deferred tax assets.Further details are provided in note\ue61fF7.C.Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets re\ufb02ects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amounts and when the Group intends to settle its current tax assets and liabilities on a net basis.Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.Current and deferred taxes for the periodCurrent and deferred taxes for the period are recognized as an expense or income in profit or loss, except when they relate to items that are recognized outside profit or loss (whether in other comprehensive income or directly in equity), in which case the tax is also recognized outside profit or loss, or when they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in the accounting for the business combination.Exception to the above, as from January 1, 2019, the Group applies the amendments to IAS 12, that apply to the income tax consequences of dividends recognized on or after the beginning of the earliest comparative period, i.e. January 1, 2018. In 2018, the income tax consequences of the coupons on perpetual hybrid bonds classified as equity were recognized in equity. As a result of the adoption of the amendment, those income tax consequences are now recognized in profit or loss.Accounting policyA discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale (see note F27 Assets held for sale), and which: \u00b7 represents a separate major line of business or geographical area of operations; \u00b7 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u00b7 is a subsidiary acquired exclusively with a view to resale.A component of the Group consists of operations and cash \ufb02ows, which can be clearly distinguished operationally and for financial reporting purposes, from the rest of the Group.In the consolidated statement of comprehensive income, the consolidated statement of cash \ufb02ows, and disclosures, discontinued operations are re-presented for prior periods presented.Accounting policyThe basic earnings per share are obtained by dividing profit for the year by the weighted average number of ordinary shares outstanding during the reporting period. The weighted average number of ordinary shares excludes the treasury shares held by the Group over the reporting period.The diluted earnings per share are obtained by dividing profit for the year, adjusted for the effects of dilutive potential ordinary shares, by the weighted average number of ordinary shares, also adjusted by the number of dilutive potential ordinary shares attached to the issuance of share options. The number of dilutive potential ordinary shares is calculated for the weighted average number of share options outstanding during the reporting period as the difference between the average market price of ordinary shares during the reporting period and the exercise price of the share option. Share options have a dilutive effect only when the average market price is above the exercise price (share options are \u201cin the money\u201d).For the purpose of calculating diluted earnings per share, there were no adjusting elements to the profit for the year (Solvay share).Basic and diluted amounts per share for discontinued operations are presented in the consolidated income statement.NOTE\ue61fF10 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEAccounting policyIn accordance with IAS\ue61f1 Presentation of Financial Statements, the Group elected to present two statements, i.e. a consolidated income statement immediately followed by a consolidated statement of comprehensive income.The components of other comprehensive income (OCI) are presented before related tax effects with one amount shown for the aggregate amount of income tax relating to those components. Tax impacts are further disclosed in this note.Currency translation differencesAccounting policyFor the purpose of presenting consolidated financial statements at the end of each reporting period, the assets and liabilities of the Group\u2019s foreign operations are expressed in euros using closing rates. Income and expense items are translated at the average exchange rates for the period except when the impact of applying the average rate is materially different from applying the spot rate at the respective transactions\u2019 dates, in which case the latter is applied. Exchange differences arising, if any, are recognized in other comprehensive income as \u201ccurrency translation differences\u201d.Currency translation differences are reclassified from equity to profit or loss, on: \u00b7 a disposal of the Group\u2019s entire interest in a foreign operation, or a partial disposal involving loss of control over a subsidiary that includes a foreign operation. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss. Any exchange differences that have previously been attributed to non-controlling interests are derecognized, but they are not reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation, when the retained interest is a financial asset. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint venture or an associate that includes a foreign operation and that continues to be accounted for as a joint venture or an associate. In this case, a proportionate share of the accumulated exchange differences is reclassified to profit or loss. In case of a partial disposal of a subsidiary (i.e. No loss of control) that includes a foreign operation, the proportionate share of accumulated exchange differences is reattributed to non-controlling interests and is not recognized in profit or loss. In case of (a) a capital decrease of a subsidiary without loss of control, or (b) a capital decrease of an equity method investee or a joint operation without modification of the share of equity interest held in that investee, then no accumulated exchange differences are reclassified from equity to profit or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated into the Group\u2019s presentation currency at the closing rate.Accounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.Intangible assets are amortized on a straight-line basis over their estimated useful lives, which do not exceed the contractual period, if any. The estimated useful lives, residual values and amortization methods are reviewed at each year-end, and any changes in estimates are accounted for prospectively.Patents and trademarks 2-20 yearsSoftware 3-5 yearsDevelopment expenditures 2-5 yearsCustomer relationships 5-29 yearsOther intangible assets - Technologies 5-20 yearsAmortization expense is included in the consolidated income statement within cost of goods sold, administrative costs, research and development costs and other operating gains and losses.The asset is tested for impairment if (a) there is a trigger for impairment, and (b) annually for projects under development (see note F24 Impairment).Intangible assets are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an intangible asset is recognized in profit or loss at the moment of derecognition.Patents, trademarks and customer relationshipsThose intangible assets have mainly been acquired through business combinations. Customer relationships consist of customer lists.Other intangible assetsOther intangible assets mainly include technology acquired separately or in a business combination.Accounting policyGeneralAcquisitions of subsidiaries are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of acquisition) of assets transferred and liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized in profit or loss as incurred.Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance with relevant IFRSs, generally through profit or loss.Where a business combination is achieved in stages, the Group\u2019s previously held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. The date the Group obtains control) and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.The acquiree\u2019s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS\ue61f3 Business Combinations are recognized and measured at their fair value at the acquisition date, except that: \u00b7 deferred tax assets or liabilities, and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with IAS\ue61f12 Income Taxes, and IAS\ue61f19 Employee Benefits, respectively; \u00b7 liabilities or equity instruments related to the replacement by the Group of an acquiree\u2019s share-based payment awards are measured in accordance with IFRS\ue61f2 Share-based Payment; and \u00b7 assets (or disposal groups) that are classified as held for sale in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see paragraph below), or additional assets or liabilities are recognized, to re\ufb02ect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date.The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date, and does not exceed twelve months.GoodwillGoodwill arising in a business combination is recognized as an asset at the date that control is obtained (the acquisition date). Goodwill is measured as the excess of the sum of:(a) the consideration transferred;(b) the amount of any non-controlling interests in the acquiree; and(c) in a business combination achieved in stages, the acquisition date fair value of the previously held equity interest in the acquiree, over the share acquired by the Group in the fair value of the entity\u2019s identifiable net assets at the acquisition date.Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.Items of property, plant and equipment are initially measured at cost. The cost of an item of property, plant and equipment comprises its purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. If applicable, the cost comprises borrowing costs during the construction period.After initial recognition, items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. The components of an item of property, plant and equipment with different useful lives are depreciated separately. Land is not depreciated. The estimated useful lives, residual values and depreciation methods are reviewed at each year end, also taking into account the potential impact of climate change including the execution of the Solvay One Plant Strategy (see Note Climate Change in the IFRS general accounting policies). Any changes in estimates are accounted for prospectively.Buildings 30-40 yearsIT equipment 3-5 yearsMachinery and equipment 10-20 yearsTransportation equipment 5-20 yearsDepreciation expense is included in the consolidated income statement within cost of goods sold, administrative costs, and R&D costs.The asset is tested for impairment if there is a trigger for impairment (see note F24 Impairment).Items of property, plant and equipment are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an item of property, plant and equipment is recognized in profit or loss at the moment of derecognition.Subsequent expenditureSubsequent expenditure related to items of property, plant and equipment is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred. Subsequent expenditure incurred for the replacement of a component of an item of property, plant and equipment is only recognized as an asset when it satisfies the recognition criteria mentioned above. The carrying amount of replaced items is derecognized.Repair and maintenance costs are recognized in the consolidated income statement as incurred.Regarding its industrial activity, Solvay incurs expenditure for major repairs over several years for most of its sites. The purpose of this expenditure is to maintain the proper working order of certain installations without altering their useful life. This expenditure is considered as a specific component of the item of property, plant and equipment and is depreciated over the period during which the economic benefits are expected to be obtained, i.e. the major repairs\u2019 intervals.Dismantling and restoration costsDismantling and restoration costs are included in the cost of an item of property, plant and equipment if the Group has a legal or constructive obligation to dismantle or restore. They are depreciated over the useful life of the items to which they pertain.Generally, Solvay\u2019s obligation to dismantle and/or restore its operating sites is only likely to arise upon the discontinuation of a site\u2019s activities. A provision for dismantling of discontinued sites or installations is recognized when there is a legal obligation (due to a request or injunction from the relevant authorities), or when there is no technical alternative than to dismantle, so to ensure the safety compliance of the discontinued sites or installations.Borrowing costsBorrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.All other borrowing costs are recognized in profit or loss in the period in which they are incurred.Accounting policyDefinition of a lease At inception of a contract, which generally coincides with the date the contract is signed, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.An asset is typically identified by being explicitly specified in a contract. However, an asset can also be identified by being implicitly specified at the time that the asset is made available for use by the customer. If the supplier has a substantive substitution right, then the asset is not identified. A substantive substitution right means that (a) the supplier has the practical ability to substitute the asset throughout the period of use, and (b) would economically benefit from doing so. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether, throughout the period of use, it has: \u00b7 the right to obtain substantially all of the economic benefits from use of the identified asset; and \u00b7 the right to direct the use of the identified asset. This is generally the case when the Group has the decision-making rights regarding how and for what purpose the asset is used. The Group\u2019s leased assets relate mainly to buildings, transportation equipment, and industrial equipment.Lease termThe Group determines the lease term as the non-cancellable period of a lease, together with both: \u00b7 periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and \u00b7 periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option.In its assessment, the Group considers the impact of the following factors (non-exhaustive): \u00b7 contractual terms and conditions for the optional periods, compared with market rates; \u00b7 significant leasehold improvements undertaken (or expected to be undertaken) over the term of the contract; \u00b7 costs relating to the termination of the lease, including relocation costs, costs of identifying another underlying asset suitable for the Group\u2019s needs, costs of integrating a new asset into the Group\u2019s operations, and termination penalties; \u00b7 the importance of that underlying asset to the Group\u2019s operations, including the availability of suitable alternatives; \u00b7 conditionality associated with exercising the option (i.e. When the option can be exercised only if one or more conditions are met), and the likelihood that those conditions will exist; and \u00b7 past practice.Right-of-use asset and lease liabilityThe Group recognizes a right-of-use asset and a lease liability at the lease commencement date, which is the date that the lessor makes the asset available for use by the Group except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. The right-of-use assets are presented separately in the consolidated statement of financial position, and the lease liabilities are presented as part of financial debt.Right-of-use assetThe right-of-use asset is initially measured at cost, which comprises: \u00b7 the amount of the initial measurement of the lease liability; \u00b7 any lease payments made at or before the commencement date, less any lease incentive received; and \u00b7 any initial direct costs incurred by the Group.After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any accumulated impairment losses. Right-of-use assets are depreciated using the straight-line depreciation method, from the commencement date to (a) the end of the useful life of the underlying asset, in case the lease transfers ownership of the underlying asset to the Group by the end of the lease term, or the lease contains a purchase option that the Group is reasonably certain to exercise, or (b) the earlier of the end of the useful life and the end of the lease term, in all other cases. Lease liabilityThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the respective Group entity\u2019s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise the following: \u00b7 fixed payments, less any lease incentives receivable; \u00b7 variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; \u00b7 amounts expected to be payable by the Group under residual value guarantees; \u00b7 the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and \u00b7 payments of penalties for early terminating the lease, if the Group is reasonably certain to exercise an option to early terminate the lease.Service components (e.g. Utilities, maintenance, insurance, \u2026) are excluded from the measurement of the lease liability. After the commencement date, the lease liability is measured by: \u00b7 increasing the carrying amount to re\ufb02ect interest on the lease liability; \u00b7 reducing the carrying amount to re\ufb02ect the lease payments made; and \u00b7 remeasuring the carrying amount to re\ufb02ect any reassessment or lease modifications, or to re\ufb02ect the impact from a revised index or rate.Leasing of PalladiumThe Group uses palladium, a precious metal, for certain of its operations. Next to purchasing this palladium, the Group also enters into various \u201cleasing\u201d agreements with financial institutions that give the Group the right to use palladium for a certain period and then return it at the end of the \u201clease\u201d. Based on our analysis of these agreements, these contracts are not in the scope of IFRS 16 Leases or IFRS 9 Financial Instruments. Due to the lack of clear IFRS guidance, the Group applied judgment to determine whether these rights and obligations shall be accounted for on a gross or a net basis. Considering that the Group bears no price risk during the \u2018lease\u2019 term and is not in full control of the asset (in accordance with the IFRS Conceptual Framework), the Group believes a net presentation gives a better view on the economic substance of the transaction. As a result, only accruals are recorded for the production losses and regeneration costs and the \u201clease\u201d fee is recognized within cost of sales. At the end of 2022, the total (gross) value of palladium leased still to be returned amounted to \u20ac59 million (end of 2021: \u20ac50 million) valued at the year-end closing rate.Accounting policyGeneralAt the end of each reporting period, the Group reviews whether there is any indication that assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are allocated to individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified.The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate. \ue61f Future cash \ufb02ows are adjusted for risks not incorporated into the discount rate.\ue61fIf the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.When an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. An impairment loss recognized for goodwill shall not be reversed in a subsequent period.Assets other than non-current assets held for saleIn accordance with IAS 36 Impairment of Assets, the recoverable amount of property, plant and equipment, intangible assets, right-of-use assets, CGUs or groups of CGUs, including goodwill, and equity method investees corresponds to the higher of their fair value less costs of disposal, and their value in use. The latter equals the present value of the future cash \ufb02ows expected to be derived from each asset, CGU or group of CGUs, and equity method investees and is determined using the following inputs: \u00b7 business plan approved by management based on growth and profitability assumptions, taking into account past performances, forecast changes in the economic environment and expected market developments, including opportunity and risks resulting from climate change (taking into account the Solvay One Planet strategy - see note Climate change in the IFRS general accounting policies) and environmental regulations such as products phasing out. For further details, refer to the Risk Management Section. Such business plan generally covers five\ue61fyears, unless management is confident that projections over a longer period are reliable; \u00b7 consideration of a terminal value determined based on the cash \ufb02ows obtained by extrapolating the cash \ufb02ows of the last years of the business plan referred to above, affected by a long-term growth rate deemed appropriate for the activity and the location of the assets; \u00b7 discounting of expected cash \ufb02ows at a rate determined using the weighted average cost of capital formula.Discount rateWeighted average cost of capital (WACC) was computed using the same methodology applied in previous years after extensive benchmarking with Peers: \u00b7 A short term WACC of 6.6% was utilized in 2022 (5.1% in 2021) to discount the expected cash \ufb02ows of the initial four years, computed based on prevailing discount rates; \u00b7 A long term WACC of 6.5% was utilized in 2022 (6.8% in 2021) to discount the expected cash \ufb02ows of the fifth year and the Terminal Value, and is a rolling 8-year average of historical short term WACCs. These WACCs are in the low range of the observed Peers\u2019 WACC estimates.Long-term growth ratesThe long-term growth rates used in 2022 are based: \u00b7 on the comprehensive review of the entire business portfolio performed in 2019 with the definition of the G.R.O.W. Strategy when each CGU was assigned to one of three agile business segments that became effective as from 2020: Materials, Chemicals and Solutions, with different growth opportunities, consistent with the long term growth rates of the market they serve and the Group competitive position in those markets; and \u00b7 on the long term growth potential for Composite Materials and Technology Solutions assessed during the 2020 impairment test which remain very strong.After reassessment of the long-term growth prospects the Group concluded that the prior year rates are still applicable and were thus set at: \u00b7 2% for the Specialty Polymers CGU and 3% for the Composite Materials CGU; \u00b7 0% in the Segment Chemicals, except for Soda Ash and Peroxides, for which a 1% rate was set; and \u00b7 1% for the other CGUs in the Segment Solutions (excluding Technology Solutions, for which 1.5% was used, and Oil & Gas).Other key assumptions are specific to each CGU (utility price, volumes, margin, etc.) and are based on approved budgets and mid-term plans. Accounting policyCost of inventories includes the purchase, conversion and other costs incurred in bringing the inventories to their\ue61fpresent location and condition. The cost of inventories is determined by using the weighted average cost method. Inventories are measured at the lower of purchasing cost (raw materials and merchandise) or production cost (work in progress and finished goods) and net realizable value. Net realizable value represents the estimated selling price, less all estimated costs of completion and the estimated costs necessary to make the sale.CO emission rights2With respect to the mechanism set up by the European Union to encourage manufacturers to reduce their greenhouse gas emissions, carbon dioxide (CO) emission rights are granted to the Group for free. The Group is also involved in Clean Development Mechanism (CDM) under the 2Kyoto protocol. Under these projects, the Group has deployed facilities in order to reduce greenhouse gas emissions at the relevant sites in return for Certified Emission Reductions (CER).In the absence of any IFRS regulating the accounting treatment of CO emission rights, the Group applies the Trade/Production model, according 2to which CO emission rights are presented as inventories if they will be consumed in the production process within the next 12 months, or as 2derivatives if they are held for trading. Energy Services is involved in CO emission rights\u2019 trading, arbitrage and hedging activities. The net income 2or expense from these activities is recognized in \u201cother operating gains and losses\u201d (a) for the industrial component, where Energy Services sells the excess CO emission rights generated by Solvay or where a Group deficit is recognized, as well as (b) for the trading component, where Energy 2Services acts as a trader/broker with respect to those CO emission rights. 2In light of its centralized CO emission rights\u2019 portfolio management, for emission rights that are substitutable between subsidiaries, the Group\u2019s 2financial statements re\ufb02ect the Group\u2019s net position. If this net position is negative, a provision is recognized, measured based on the market price of the CO emission rights at reporting date. 2Energy savings certificates (ESCs)Energy savings certificates are presented as inventory items in Finished goods. They are measured at weighted average cost. As their cost is not separately identifiable, and as they are a by-product, they are measured at their net realizable value upon initial recognition.NOTE\ue61fF27 ASSETS\ue61eHELD FOR SALEAccounting policyA disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit.Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to re\ufb02ect the new classification of a non-current asset (or disposal group) as held for sale.Share capitalOrdinary shares are classified as equity.Incremental costs directly attributable to the issuance of new share capital are directly recognized in equity as a deduction, net of tax, from the equity issuance proceeds.ReservesThe reserves include: \u00b7 treasury shares; \u00b7 perpetual hybrid bonds that qualify as equity absent any unavoidable contractual obligation to repay the principal and interest of the perpetual hybrid bonds (no maturity, interest is payable annually but can be deferred indefinitely at the issuer\u2019s discretion); \u00b7 retained earnings; \u00b7 currency translation differences from the consolidation process relating to the translation of the financial statements of foreign operations prepared in a non-euro functional currency to the euro presentation currency; \u00b7 the impacts of the fair value remeasurement of equity instruments measured at fair value through other comprehensive income; \u00b7 the impacts of the fair value remeasurement of financial instruments documented as hedging instruments in cash \ufb02ow hedges; \u00b7 actuarial gains and losses related to defined benefit plans.Non-controlling interestsThose represent the share of non-controlling interests in the net assets and comprehensive income of subsidiaries of the Group, and corresponds to the interests in subsidiaries that are not held by the Company or its subsidiaries.Accounting policySolvay has set up compensation plans, including equity-settled and cash-settled share-based compensation plans.In its equity-settled plans, the Group receives services as consideration for its own equity instruments (namely through the issuance of share options). The fair value of services rendered by employees in consideration for the granting of equity-instruments represents an expense. This expense is recognized on a straight-line basis in the consolidated income statement over the vesting periods relating to these equity-instruments with the recognition of a corresponding adjustment in equity. The fair value of services rendered is measured based on the fair value of the equity-instruments on the grant date. It is not subsequently remeasured. At each reporting date, the Group re-estimates the number of share options likely to vest. The impact of the revised estimates is recognized in profit or loss against a corresponding adjustment in equity.In its cash-settled plans, the Group acquires services by incurring a liability to transfer to its employees rendering those services amounts that are based on the price (or value) of equity instruments (including shares or share options) of the Group (namely through the issuance of performance share units). The fair value of services rendered by employees in consideration for the granting of share-based payments represents an expense. This expense is recognized on a straight-line basis in the consolidated income statement over the vesting periods relating to these share-based payments with the recognition of a corresponding adjustment in liabilities. At each reporting date, the Group re-estimates the number of options likely to vest, with the impact of the revised estimates recognized in profit or loss. The Group measures the services acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss for the period.Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group\u2019s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are re\ufb02ected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are re\ufb02ected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. The dilutive effect of outstanding options is re\ufb02ected as additional share dilution in the computation of diluted earnings per share (further details are given in Note F9 Earnings per share).1. F31.A. Provisions for employee bene\ue782tsAccounting policyGeneralThe Group\u2019s employees are offered various post-employment benefits, other long-term employee benefits, and termination benefits as a result of legislation applicable in certain countries, and contractual agreements entered into by the Group with its employees or constructive obligations.The post-employment benefits are classified as defined contribution or defined benefit plans.Defined contribution plansDefined contribution plans involve the payment of fixed contributions to a separate entity, and release the employer from any subsequent obligation, as this separate entity is solely responsible for paying the amounts due to the employee. The expense is recognized when an employee has rendered services to the Group during the period.Defined benefit plansDefined benefit plans concern all plans other than defined contribution plans, and include: \u00b7 post-employment benefits: pension plans, other post-employment obligations and supplemental benefits such as post-employment medical plans.Taking into account projected final salaries on an individual basis, post-employment benefits are measured by applying a method (projected unit credit method) using assumptions involving discount rate, life expectancy, turnover, wages, annuity revaluation and medical cost in\ufb02ation. The assumptions specific to each plan take into account the local economic and demographic contexts.The discount rates are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligation.The amount recognized under post-employment obligations corresponds to the difference between the present value of future obligations and the fair value of the plan assets funding the plan, if any. If this calculation gives rise to a deficit, an obligation is recognized in liabilities. Otherwise, a net asset limited to the lower of the surplus in the defined benefit plan and the present value of any future plan refunds or any reduction in future contributions to the plan is recognized. Therefore the amount at which such an asset is recognized in the statement of financial position may be subject to a ceiling.The defined benefit cost consists of service cost and net interest expense (based on discount rate) on the net liability or asset, both recognized in profit or loss, and remeasurements of the net liability or asset, recognized in other comprehensive income.Service cost consists of current service cost, past service cost resulting from plan amendments or curtailments and settlement gains or losses.The interest expenses arising from the reverse discounting of the benefit obligations, the financial income on plan assets (determined by multiplying the fair value of the plan assets by the discount rate) as well as interest on the effect of the asset ceiling are recognized on a net basis in the net financial charges (cost of discounting of provisions).Remeasurements of the net liability or asset consist of: \u00b7 actuarial gains and losses on the benefit obligations arising from experience adjustments and/or changes in actuarial assumptions (including the effect of changes in the discount rate) recognized in other comprehensive income; \u00b7 Changes as a consequence of plan amendments, recognized in profit or loss; \u00b7 the return on plan assets (excluding amounts in net interest) and changes in the limitation of the net asset recognized.Other long-term employee and termination benefitsOther long-term employee benefits related to long service benefits granted to employees according to their seniority in the Group. Termination benefits include early pension plans. Other long-term employee and termination benefits are accounted for in the same way as post-employment benefits but remeasurements are fully recognized in the net financial charges during the period in which they occur.The actuarial calculations of the main post-employment obligations and other long-term benefits are performed by independent actuaries.F31.B. Provisions other than for employee benefits Accounting policyGeneralProvisions are recognized when (a) the Group has a present obligation (legal or constructive) as a result of a past event, (b) it is probable that the Group will be required to settle the obligation, and (c) a reliable estimate can be made of the amount of the obligation.The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount is the present value of expenditures required to settle the obligation. Impacts of changes in discount rates are generally recognized in the financial result.When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received when the Group settles the obligation.RestructuringsA restructuring provision is recognized when the Group has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the entity.Environmental remediation costsEnvironmental liabilities are mainly related to non-ongoing activities (shut-down sites, discontinued activities or divested activities where Solvay maintains certain commitments) and, to a lower extent, to ongoing activities (see comments below).An environmental provision is recognized, in accordance to IAS 37, when there is a current legal or constructive obligation resulting from past events which will result in a probable out\ufb02ow of resources (expenses / cash outs) to settle it and for which a reliable estimate of such out\ufb02ows and timing can be made.The environmental expenses encompass, but are not limited to, the following key matters \u00b7 Sampling and analytical costs for soil and ground water monitoring \u00b7 Cost related to dismantling when required to meet a remediation or permit obligation \u00b7 Asbestos removal when obligated by regulation \u00b7 Environmental investigations and studies (Risk Assessments, Phase I and II soil and groundwater) The closing amount of the environmental provisions is based on the net present value of the future cash \ufb02ows needed, for current and future years, to settle remediation obligations. Forecast expenditures are based on external consultant estimates, where appropriate and possible. Future expenditures are forecast and revised biannually and validated quarterly by Solvay finance and suitably qualified industrial experts led by the Group Environmental Rehabilitation Director and benefit from inputs of legal department staff for the evolution of Environmental Regulations.In the absence of probable obligations, a contingent liability may be disclosed to represent the future possible liability. In some cases, contingent liabilities cannot be quantified. See Note F36 Contingent assets, liabilities and financial guarantees.Financial assetsTrade receivables are initially measured at their transaction price, if they do not contain a significant financing component, which is the case for substantially all trade receivables. Other financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A financial asset is classified as current when the cash \ufb02ows expected to \ufb02ow from the instrument mature within one year.All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 Financial Instruments. Specifically: \u00b7 a debt instrument that (i) is held within a business model whose objective is to collect the contractual cash \ufb02ows and (ii) has contractual cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; \u00b7 a debt instrument that (i) is held within a business model whose objective is achieved both by collecting contractual cash \ufb02ows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option. Upon derecognition, the cumulative gains and losses previously recognized in other comprehensive income are reclassified to profit or loss; \u00b7 all other debt instruments are measured at FVTPL; \u00b7 all equity investments are measured in the consolidated statement of financial position at fair value, with gains and losses recognized in profit or loss except that if an equity investment is not held for trading, nor contingent consideration recognized by an acquirer in a business combination, an irrevocable election can be made at initial recognition to measure the investment at FVTOCI, with dividend income recognized in profit or loss. This classification is determined on an instrument-by-instrument basis. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to retained earnings. \u00b7 Equity investments in partnerships of investment funds are measured in the consolidated statement of financial position at fair value with gains and losses recognized in profit or loss. Based on the analysis of the characteristics of these funds the Group determined that they were not eligible for the FVTOCI option and therefore are accounted for at FVTPL. For instruments quoted in an active market, the fair value corresponds to a market price (level 1). For instruments that are not quoted in an active market, the fair value is determined using valuation techniques including reference to recent arm\u2019s length market transactions or transactions involving instruments which are substantially the same (level 2), or discounted cash \ufb02ow analysis including, to the greatest possible extent, assumptions consistent with observable market data (level 3). However, in limited circumstances, cost of equity instruments may be an appropriate estimate of their fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.Impairment of financial assetsThe impairment loss of a financial asset measured at amortized cost is calculated based on the expected loss model, representing the weighted average of credit losses with the respective risks of a default occurring as the weights. Expected credit losses are based on the difference between the contractual cash \ufb02ows due in accordance with the contract and all the cash \ufb02ows that the Group expects to receive, discounted at an approximation of the original effective interest rate.For trade receivables that do not contain a significant financing component (i.e. substantially all trade receivables), the loss allowance is measured at an amount equal to lifetime expected credit losses. Those are the expected credit losses that result from all possible default events over the expected life of those trade receivables, using a provision matrix that takes into account historical information on defaults adjusted for the forward-looking information per customer. The Group considers a financial asset in default when contractual payments are 60 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is fully impaired when there is no reasonable expectation of recovering the contractual cash \ufb02ows.Impairment losses are recognized in the consolidated income statement, except for debt instruments measured at fair value through other comprehensive income. In this case, the allowance is recognized in other comprehensive income.Financial liabilitiesFinancial liabilities are initially measured at fair value minus, in the case of a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial liability. Subsequently, they are measured at amortized cost, except for: \u00b7 financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value; \u00b7 financial guarantee contracts. After initial recognition, guarantees are subsequently measured at the higher of the expected losses and the amount initially recognized.Derivative financial instrumentsA derivative financial instrument is a financial instrument or other contract within the scope of IFRS 9 Financial Instruments with all three of the following characteristics: \u00b7 its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the \u2018underlying\u2019); \u00b7 it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; \u00b7 it is settled at a future date.The Group enters into a variety of derivative financial instruments (forward, future, option, collars and swap contracts) to manage its exposure to interest rate risk, foreign exchange rate risk, and commodity risk (mainly utility and CO emission rights price risks).2As explained above, derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in income or expense, unless the derivative is designated and effective as a hedging instrument. The Group designates certain derivatives as hedging instruments of the exposure to variability in cash \ufb02ows with respect to a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss (cash \ufb02ow hedges).A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivative instruments (or portions of them) are presented as non-current assets or non-current liabilities if the remaining maturity of the underlying settlements is more than twelve months after the reporting period. Other derivative instruments (or portions of them) are presented as current assets or current liabilities.Hedge accountingThe Group designates certain derivatives and embedded derivatives, in respect of interest rate risk, foreign exchange rate risk, Solvay share price risk, and commodity risk (mainly utility and CO emission rights price risks), as hedging instruments in a cash \ufb02ow hedge relationship.2At the inception of the hedge relationship, there is a formal designation and documentation of the hedging relationship and the Group\u2019s risk management objective and strategy for undertaking the hedge. So to apply hedge accounting: (a) there is an economic relationship between the hedged item and the hedging instrument, (b) the effect of credit risk does not dominate the value changes that result from that economic relationship, and (c) the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.The requirement under (a) above that an economic relationship exists means that there is an expectation that the value of the hedging instrument and the value of the hedged item will systematically change in the opposite direction in response to movements in either the same underlying (or underlyings that are economically related in such a way that they respond in a similar way to the risk that is being hedged).Cash \ufb02ow hedgesThe effective portion of changes in the fair value of hedging instruments that are designated in a cash \ufb02ow hedge is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.As long as cash \ufb02ow hedge qualifies, the hedging relationship is accounted for as follows:a) the separate component of equity associated with the hedged item (cash \ufb02ow hedge reserve) is adjusted to the lower of the following (in absolute amounts):(i) the cumulative gain or loss on the hedging instrument from inception of the hedge; and(ii) the cumulative change in fair value (present value) of the hedged item (i.e. The present value of the cumulative change in the hedged expected future cash \ufb02ows) from inception of the hedge.b) the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge (i.e. The portion that is offset by the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is recognized in other comprehensive income;c) any remaining gain or loss on the hedging instrument (or any gain or loss required to balance the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is hedge ineffectiveness that is recognized in profit or loss.d) the amount that has been accumulated in the cash \ufb02ow hedge reserve in accordance with (a) is accounted for as follows:(i) if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the Group removes that amount from the cash \ufb02ow hedge reserve and includes it directly in the initial cost or other carrying amount of the asset or the liability. This is not a reclassification adjustment and hence it does not affect other comprehensive income;(ii) for cash \ufb02ow hedges other than those covered by i), that amount is reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash \ufb02ows affect profit or loss (for example, in the periods that interest income or interest expense is recognized or when a forecast sale occurs);(iii) however, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.Most hedged items are transaction related. The time value of options, forward elements of forward contracts, and foreign currency basis spreads of financial instruments that are hedging the items affect profit or loss at the same time as those hedged items. Hedge accounting is discontinued prospectively when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. When the Group discontinues hedge accounting for a cash \ufb02ow hedge it accounts for the amount that has been accumulated in the cash \ufb02ow hedge reserve as follows: \u00b7 if the hedged future cash \ufb02ows are still expected to occur, that amount remains in the cash \ufb02ow hedge reserve until the future cash \ufb02ows occur. However, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment; \u00b7 if the hedged future cash \ufb02ows are no longer expected to occur, that amount is immediately reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment. A hedged future cash \ufb02ow that is no longer highly probable to occur may still be expected to occur.Fair value hedgesThe gain or loss on the hedging instrument shall be recognized in profit or loss (or other comprehensive income, if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income).The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts shall remain in other comprehensive income. When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in the fair value of the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding gain or loss recognized in profit or loss.F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.NOTE\ue61fF36CONTINGENT ASSETS, LIABILITIES AND FINANCIAL GUARANTEESAccounting policyA contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Group.Contingent assets are not recognized in the consolidated financial statements since this may result in the recognition of income that may never be realized. However, when the realization of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate. Contingent assets are assessed continually to ensure that developments are appropriately re\ufb02ected in the consolidated financial statements. If it has become virtually certain that an in\ufb02ow of economic benefits will arise, the asset and the related income are recognized in the consolidated financial statements of the period in which the change occurs. If an in\ufb02ow of economic benefits has become probable, the Group discloses the contingent asset.A contingent liability is:(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or(b) a present obligation that arises from past events but is not recognized because:(i) it is not probable that an out\ufb02ow of resources embodying economic benefits will be required to settle the obligation; or(ii) the amount of the obligation cannot be measured with sufficient reliabilityContingent liabilities are not recognized in the consolidated financial statements, except if they arise from a business combination. They are disclosed unless the possibility of an out\ufb02ow of economic benefits is remote.Financial guarantees are contracts that require the Group to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.In order to avoid double counting, only guarantees in excess of liabilities recognized or disclosures made elsewhere in the Group's consolidated financial statements are disclosed in this note.\ue61f Regarding financial guarantees, all financial guarantees of the Group are presented in this note.NOTE\ue61fF39EVENTS AFTER THE REPORTING PERIODAccounting policyEvents after the reporting period which provide evidence of conditions that existed at the end of the reporting period (adjusting events) are recognized in the consolidated financial statements. Events indicative of conditions that arose after the reporting period are non-adjusting events and are disclosed in the notes if material.EdisonSolvay received compensation of \u20ac91.632 million after decisions by the International Chamber of Commerce's arbitration tribunal, the Swiss Supreme Court, and the Milan Court of Appeal, all of which ruled in favor of Solvay. The outcome follows more than 10 years of legal proceedings in relation to Solvay\u2019s claims of environmental breaches by Edison, a subsidiary of EDF, in the context of Solvay's acquisition of the Italian company Ausimont in 2002.The compensation relates to costs, losses and damages suffered by Solvay up to the end of 2016. Additional arbitration procedures are currently ongoing regarding costs, losses and damages suffered by Solvay from January 2017 onwards. Solvay is confident in the merits of its claim for additional\ue61fsignificant compensation for damage in this second phase and\ue61fexpects proceedings to conclude in 2024.RusvinylOn February 6, 2023, the Group announced that it is in advanced negotiations to divest its stake in Rusvinyl, an independent 50/50 joint venture in Russia, to its joint venture partner, Sibur. In addition to the recently obtained preliminary clearance from Russian governmental authorities, the potential transaction is still subject to several other regulatory approvals.The Group considers that the Rusvinyl joint venture does not meet the criteria under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations to be classified as held for sale at December 31, 2022 nor at the date of authorization of these consolidated financial statements.\ue61f",
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"language": "en",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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"pp-value-12-4": {
"value": "2. Basis of measurement and presentationThe consolidated financial statements are presented in\ue61fmillions of euros, which is also the functional currency of the parent company.The preparation of the consolidated financial statements requires the use of estimates and assumptions that have an impact on the application of accounting policies and the measurement of amounts recognized in the consolidated financial statements. The areas for which the estimates and assumptions are material with respect to the consolidated financial statements are presented in the section\ue61fCritical accounting judgments and Key sources of estimation uncertainty.CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY1. Critical accounting judgmentsOn March 15, 2022, the Group announced its plan to separate into two independent publicly traded companies, Essential Co and Specialty Co. The separation would be effected by means of a partial demerger of Solvay whereby the specialty businesses will be spun off to Specialty Co.\ue61fWhile the Group is actively taking steps to prepare for the partial demerger and\ue61fanticipates that the transaction will be completed in December 2023, the Group considers the specialty businesses to not meet the criteria under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (IFRS 5) to be classified as discontinued operations at December 31, 2022.\ue61fThis judgment is taken on the basis that the consent of certain financing providers and the approval of the shareholders has not yet been obtained. These approvals are anticipated to occur in the course of 2023. Management will further assess the criteria at each reporting period. No other critical accounting judgments have been identified for the year ended December 31, 2022.2. Key sources of estimation uncertaintyImpairmentThe Group performs annual impairment tests on (groups of) CGUs to which goodwill has been allocated, and each time there are indicators that their carrying amount might be higher than their recoverable amount. This analysis requires management to estimate the future cash \ufb02ows expected to be generated by the CGUs and a suitable discount rate in order to calculate present value. The recoverable amount is highly sensitive to discount and growth rates. Further details are provided in note\ue61fF20 Goodwill and Business Combinations and F24 Impairment.Deferred tax assetsDeferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profits will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits.The Group has \u20ac5,203 million (2021: \u20ac6,050 million) of tax losses carried forward for which no deferred tax assets were recognized. These losses relate to subsidiaries that have a history of losses, do not expire, and may not be used to offset taxable income elsewhere in the Group. The subsidiaries do not have any taxable temporary differences that could partly support the recognition of these losses as deferred tax assets. On this basis, the Group has determined that it cannot recognize deferred tax assets on these tax losses carried forward.Further details are provided in Note F7.C. Deferred taxes in the consolidated statement of financial position and F7.D Other Information.Defined benefit obligations - GeneralThe actuarial assumptions used in determining the defined benefit obligations at December\ue61f31 as well as the annual cost can be found in note\ue61fF31.A. Provisions for employee benefits. All main employee benefits plans are assessed annually by independent actuaries. Discount rates and in\ufb02ation rates are defined centrally by management. The other assumptions (such as future salary increases and expected rates of medical care cost increases) are defined at a local level. All plans are supervised by the Group\u2019s central Human Resources department with the help of a central actuary to check the reasonableness of the results and ensure consistency in reporting. All assumptions are reviewed at each reporting date.Further details are provided in note\ue61fF31.A. Provisions for employee benefits.Environmental provisionsEnvironmental provisions are managed and coordinated jointly by the Environmental Rehabilitation department and the Finance department. In case of environmental impacts stemming from historical production activities, generally, no provision is recognized for remediation works beyond the 20 years due to the inherent high level of uncertainty as to the timing and amount.The forecasts of expenses are discounted to their present value. The discount rates fixed by geographical area correspond to the average risk-free rate on 10-year government bonds or the in\ufb02ation rate if higher. These rates are set annually by the Finance Department and can be revised based on the evolution of economic parameters of the country involved. To re\ufb02ect the passage of time, the provisions are increased each year at the discount rates described above.Further details are provided in note\ue61fF31.B. Provisions other than for employee benefits.Provisions for litigationsAny significant litigations (post M&A and other, including threat of litigation) are reviewed by Solvay\u2019s in-house lawyers with the support, when appropriate, of external counsels at least every quarter together with the Finance and Insurance Departments. This review includes an assessment of the need to recognize provisions, disclose contingent liabilities and/or contingent assets. Further details are provided in note\ue61fF31.B. Provisions other than for employee benefits and F36 Contingent assets, liabilities and financial guarantees.Leases \u2013 Identifying whether a contract includes a leaseThe Group enters into various contracts to obtain goods and services. Determining whether those contracts include a lease requires judgment. Elements that are considered include assessing whether or not there is an identified asset. To make the determination the Group considers whether or not it has the right to obtain substantially all of the economic benefit of the asset(s) throughout the period of use. Additionally, the Group assesses the extent of its decision-making rights and the existence of any substantive substitution rights. All facts and circumstances relevant to the assessment are considered and the identification of a lease is determined with the support of the departments that have the relevant knowledge, and which mainly includes the GBU management. Refer to note F22 Right-of-use assets and lease obligations for the leases that were identified by the Group and accounted for in accordance with IFRS 16 Leases.Leases \u2013 Assessment of lease termDetermining the lease term requires judgment. Elements that are considered include assessing the probability that early termination options or extension options will be exercised. All facts and circumstances relevant to the assessment are considered, and the main ones have been described in note F22 Right-of-use assets and lease obligations. Lease terms are determined with the support of the departments that have the relevant knowledge, and that mainly includes the Purchasing department, and the Facilities department.NON-IFRS (UNDERLYING) METRICSIn addition to IFRS accounts, Solvay also presents alternative performance indicators to provide a more consistent and comparable indication of the Group\u2019s underlying financial performance and financial position, as well as cash \ufb02ows. These indicators provide a balanced view of the Group\u2019s operations and are considered useful to investors, analysts and credit rating agencies as these measures provide relevant information on the Group\u2019s past or future performance, position or cash \ufb02ows. These indicators are generally used in the sector it operates in and therefore serve as a useful aid for investors to compare the Group\u2019s performance with its peers.See Glossary for definitions of adjustments (IFRS vs Underlying metrics) and Business Review for more information and reconciliation with IFRS figures.NOTES TO THE CONSOLIDATED INCOME STATEMENTPreliminary comment: consistent with the presentation in the consolidated income statement, the notes to the consolidated income statement as presented hereafter do not include the consolidated income statement impacts from discontinued operations that are presented on a separate line. Those are disclosed in note F8 Discontinued operations. ",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-12-6": {
"value": "2. Basis of measurement and presentationThe consolidated financial statements are presented in\ue61fmillions of euros, which is also the functional currency of the parent company.The preparation of the consolidated financial statements requires the use of estimates and assumptions that have an impact on the application of accounting policies and the measurement of amounts recognized in the consolidated financial statements. The areas for which the estimates and assumptions are material with respect to the consolidated financial statements are presented in the section\ue61fCritical accounting judgments and Key sources of estimation uncertainty.4. Foreign currenciesThe individual financial statements of each Group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group entity are expressed in euros (EUR), which is the presentation currency of the Group\u2019s consolidated financial statements.In preparing the financial statements of the individual entities, transactions in currencies other than the entities\u2019 functional currency are recognized at the exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the closing rate. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rate when the fair value was measured. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the date of the initial transactions.Exchange differences are recognized in profit or loss in the period in which they arise except for: \u00b7 exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occurin the foreseeable future (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income under \u201ccurrency translation differences\u201d; and \u00b7 exchange differences on transactions entered into in order to hedge certain foreign currency risks (see note F32 Financial instruments and financial risk management for hedge accounting policies). The main exchange rates used are:Year-end rate Average rate1 Euro = December 31, 2022 December 31, 2021 2022 2021Brazilian Real BRL 5.6354 6.3089 5.4391 6.3778Yuan Renminbi CNY 7.4199 7.2188 7.0781 7.6275Pound Sterling GBP 0.8870 0.8401 0.8526 0.8596Indian Rupee INR 88.3019 84.1963 82.6910 87.4271Japanese Yen JPY 140.7248 130.4077 138.0176 129.8783Korean Won KRW 1,349.6641 1,346.4377 1,357.2278 1,353.6608Mexican Peso MXN 20.8811 23.1537 21.1921 23.9889Russian Ruble RUB 77.9167 85.3452 73.7161 87.1511US Dollar USD 1.0674 1.1327 1.0531 1.1827",
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"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-13-3": {
"value": "3. Principles of consolidation3.1. Consolidation scope3.1.1. GeneralThe consolidated financial statements incorporate the financial statements of the Company, and: \u00b7 entities controlled by the Company (including through its subsidiaries) and that hence qualify as subsidiaries (see 3.1.2. below); \u00b7 arrangements over which the Company (including through its subsidiaries) exercises joint control, and that qualify as joint operations (see 3.1.3. below); \u00b7 arrangements over which the Company (including through its subsidiaries) exercises joint control, and that qualify as joint ventures (see 3.1.4. below); \u00b7 entities over which the Company (including through its subsidiaries) has significant in\ufb02uence and that hence qualify as associates (see 3.1.4. below).Where necessary, adjustments are made to the financial statements of the investees so as to align their accounting policies with those of the Group.In accordance with the principle of materiality, certain companies, which are not of a significant size, have not been included in the consolidation scope. Companies are deemed not to be significant when, during two consecutive years, they do not exceed any of the three following thresholds in terms of their contribution to the Group\u2019s accounts: \u00b7 sales of \u20ac\ue61f30\ue61fmillion; \u00b7 total assets of \u20ac\ue61f15\ue61fmillion; \u00b7 headcount of 150 persons.Companies that do not meet these criteria are, nevertheless, consolidated where the Group believes that they have a\ue61fpotential for rapid development, or where they hold shares in other companies that are consolidated based on the\ue61fabove criteria.In the aggregate, the non-consolidated companies have an immaterial impact on the consolidated financial statements of the Group.The full list of companies can\ue61fbe obtained at the Company\u2019s head office.3.1.2. Investments in subsidiariesA subsidiary is an entity over which the Group has control. Control is achieved when the Group has (a) power over an investee, (b) exposure, or rights, to variable returns from its involvement with the investee, and (c) the ability to use its power over the investee to affect the amount of the investor\u2019s returns. To assess whether the Group has control, potential voting rights are taken into account. Subsidiaries are fully consolidated. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition and up to the effective date of disposal.Intra-group transactions, balances, income and expenses are eliminated on consolidation.Non-controlling interests in subsidiaries are presented separately from the Group\u2019s equity. Non-controlling interests are initially measured, either at fair value (full goodwill method), or at the non-controlling interests\u2019 proportionate share in the recognized amounts of the acquiree\u2019s identifiable net assets (proportionate goodwill method). The choice of measurement is made on an acquisition-by-acquisition basis. Subsequent to the acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests\u2019 share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.Changes in the Group\u2019s equity interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the Group\u2019s interests and the non-controlling interests are adjusted to re\ufb02ect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest, and (ii) the previous carrying amount of the assets (including goodwill) and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are accounted for (i.e. Reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities were disposed of. The fair value of any investment retained in the former subsidiary at the date when control is lost is considered to be the fair value on initial recognition for subsequent accounting in accordance with IFRS 9 or, when applicable, the cost on initial recognition of an investment in an associate or joint venture in accordance with IAS\ue61f28 Investments in Associates and Joint Ventures.",
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"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-15-5": {
"value": "3.1.2. Investments in subsidiariesA subsidiary is an entity over which the Group has control. Control is achieved when the Group has (a) power over an investee, (b) exposure, or rights, to variable returns from its involvement with the investee, and (c) the ability to use its power over the investee to affect the amount of the investor\u2019s returns. To assess whether the Group has control, potential voting rights are taken into account. Subsidiaries are fully consolidated. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition and up to the effective date of disposal.Intra-group transactions, balances, income and expenses are eliminated on consolidation.Non-controlling interests in subsidiaries are presented separately from the Group\u2019s equity. Non-controlling interests are initially measured, either at fair value (full goodwill method), or at the non-controlling interests\u2019 proportionate share in the recognized amounts of the acquiree\u2019s identifiable net assets (proportionate goodwill method). The choice of measurement is made on an acquisition-by-acquisition basis. Subsequent to the acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests\u2019 share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.Changes in the Group\u2019s equity interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the Group\u2019s interests and the non-controlling interests are adjusted to re\ufb02ect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest, and (ii) the previous carrying amount of the assets (including goodwill) and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are accounted for (i.e. Reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities were disposed of. The fair value of any investment retained in the former subsidiary at the date when control is lost is considered to be the fair value on initial recognition for subsequent accounting in accordance with IFRS 9 or, when applicable, the cost on initial recognition of an investment in an associate or joint venture in accordance with IAS\ue61f28 Investments in Associates and Joint Ventures.",
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"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-17-4": {
"value": "3.1.3. Investments in joint operationsA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control. In its consolidated financial statements, the Group recognizes its contractual share of the joint operations\u2019 assets, liabilities, revenue and expenses, which is generally aligned with the ownership interest in the joint operations.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-18-4": {
"value": "3.1.4. Investments in associates and\ue61fjoint\ue61fventuresAn associate is an entity over which the Group has significant in\ufb02uence and that is neither a subsidiary, nor an interest in a joint arrangement. Significant in\ufb02uence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control.The results, assets and liabilities of associates and joint ventures are incorporated in the consolidated financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, on initial recognition, investments in associates and joint ventures are recognized in the consolidated statement of financial position at cost, and the carrying amount is adjusted for post-acquisition changes in the Group\u2019s share of the net assets of the associate or joint venture, less any impairment of the value of individual investments. Losses of an associate or joint venture in excess of the Group\u2019s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group\u2019s net investment in the associate or joint venture) are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.Any excess of the cost of acquisition over the Group\u2019s share of the net fair value of the identifiable assets and (contingent) liabilities of the associate or joint venture recognized at the date of acquisition is goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of that investment. Where a Group entity transacts with an associate or joint venture of the Group, profits and losses are eliminated to the extent of the Group\u2019s interest in the relevant associate or joint venture.After application of the equity method, the Group reviews its investments in associates and joint ventures for impairment. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group performs its analysis and calculates any impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss in the consolidated income statement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-18-5": {
"value": "3.1.4. Investments in associates and\ue61fjoint\ue61fventuresAn associate is an entity over which the Group has significant in\ufb02uence and that is neither a subsidiary, nor an interest in a joint arrangement. Significant in\ufb02uence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control.The results, assets and liabilities of associates and joint ventures are incorporated in the consolidated financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, on initial recognition, investments in associates and joint ventures are recognized in the consolidated statement of financial position at cost, and the carrying amount is adjusted for post-acquisition changes in the Group\u2019s share of the net assets of the associate or joint venture, less any impairment of the value of individual investments. Losses of an associate or joint venture in excess of the Group\u2019s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group\u2019s net investment in the associate or joint venture) are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.Any excess of the cost of acquisition over the Group\u2019s share of the net fair value of the identifiable assets and (contingent) liabilities of the associate or joint venture recognized at the date of acquisition is goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of that investment. Where a Group entity transacts with an associate or joint venture of the Group, profits and losses are eliminated to the extent of the Group\u2019s interest in the relevant associate or joint venture.After application of the equity method, the Group reviews its investments in associates and joint ventures for impairment. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group performs its analysis and calculates any impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss in the consolidated income statement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures",
"language": "en",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-18-6": {
"value": "3.1.4. Investments in associates and\ue61fjoint\ue61fventuresAn associate is an entity over which the Group has significant in\ufb02uence and that is neither a subsidiary, nor an interest in a joint arrangement. Significant in\ufb02uence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require the unanimous consent of the parties sharing control.The results, assets and liabilities of associates and joint ventures are incorporated in the consolidated financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, on initial recognition, investments in associates and joint ventures are recognized in the consolidated statement of financial position at cost, and the carrying amount is adjusted for post-acquisition changes in the Group\u2019s share of the net assets of the associate or joint venture, less any impairment of the value of individual investments. Losses of an associate or joint venture in excess of the Group\u2019s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group\u2019s net investment in the associate or joint venture) are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.Any excess of the cost of acquisition over the Group\u2019s share of the net fair value of the identifiable assets and (contingent) liabilities of the associate or joint venture recognized at the date of acquisition is goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of that investment. Where a Group entity transacts with an associate or joint venture of the Group, profits and losses are eliminated to the extent of the Group\u2019s interest in the relevant associate or joint venture.After application of the equity method, the Group reviews its investments in associates and joint ventures for impairment. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group performs its analysis and calculates any impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss in the consolidated income statement.",
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"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-19-5": {
"value": "4. Foreign currenciesThe individual financial statements of each Group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group entity are expressed in euros (EUR), which is the presentation currency of the Group\u2019s consolidated financial statements.In preparing the financial statements of the individual entities, transactions in currencies other than the entities\u2019 functional currency are recognized at the exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the closing rate. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rate when the fair value was measured. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the date of the initial transactions.Exchange differences are recognized in profit or loss in the period in which they arise except for: \u00b7 exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occurin the foreseeable future (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income under \u201ccurrency translation differences\u201d; and \u00b7 exchange differences on transactions entered into in order to hedge certain foreign currency risks (see note F32 Financial instruments and financial risk management for hedge accounting policies). The main exchange rates used are:Year-end rate Average rate1 Euro = December 31, 2022 December 31, 2021 2022 2021Brazilian Real BRL 5.6354 6.3089 5.4391 6.3778Yuan Renminbi CNY 7.4199 7.2188 7.0781 7.6275Pound Sterling GBP 0.8870 0.8401 0.8526 0.8596Indian Rupee INR 88.3019 84.1963 82.6910 87.4271Japanese Yen JPY 140.7248 130.4077 138.0176 129.8783Korean Won KRW 1,349.6641 1,346.4377 1,357.2278 1,353.6608Mexican Peso MXN 20.8811 23.1537 21.1921 23.9889Russian Ruble RUB 77.9167 85.3452 73.7161 87.1511US Dollar USD 1.0674 1.1327 1.0531 1.1827Currency translation differencesAccounting policyFor the purpose of presenting consolidated financial statements at the end of each reporting period, the assets and liabilities of the Group\u2019s foreign operations are expressed in euros using closing rates. Income and expense items are translated at the average exchange rates for the period except when the impact of applying the average rate is materially different from applying the spot rate at the respective transactions\u2019 dates, in which case the latter is applied. Exchange differences arising, if any, are recognized in other comprehensive income as \u201ccurrency translation differences\u201d.Currency translation differences are reclassified from equity to profit or loss, on: \u00b7 a disposal of the Group\u2019s entire interest in a foreign operation, or a partial disposal involving loss of control over a subsidiary that includes a foreign operation. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss. Any exchange differences that have previously been attributed to non-controlling interests are derecognized, but they are not reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation, when the retained interest is a financial asset. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint venture or an associate that includes a foreign operation and that continues to be accounted for as a joint venture or an associate. In this case, a proportionate share of the accumulated exchange differences is reclassified to profit or loss. In case of a partial disposal of a subsidiary (i.e. No loss of control) that includes a foreign operation, the proportionate share of accumulated exchange differences is reattributed to non-controlling interests and is not recognized in profit or loss. In case of (a) a capital decrease of a subsidiary without loss of control, or (b) a capital decrease of an equity method investee or a joint operation without modification of the share of equity interest held in that investee, then no accumulated exchange differences are reclassified from equity to profit or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated into the Group\u2019s presentation currency at the closing rate.",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-21-3": {
"value": "5. Government grantsGovernment grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received.Government grants relating to the purchase of property, plant and equipment are deducted from the cost of those assets. They are recognized in the consolidated statement of financial position at their expected value at the moment of initial recognition. The grant is recognized in profit or loss over the depreciation period of the underlying assets as a reduction of depreciation expense.Other government grants are recognized as income on a systematic basis over the periods in which the related costs, which they are intended to compensate, are recognized. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they become receivable.",
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"concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-27-3": {
"value": "ImpairmentThe Group performs annual impairment tests on (groups of) CGUs to which goodwill has been allocated, and each time there are indicators that their carrying amount might be higher than their recoverable amount. This analysis requires management to estimate the future cash \ufb02ows expected to be generated by the CGUs and a suitable discount rate in order to calculate present value. The recoverable amount is highly sensitive to discount and growth rates. Further details are provided in note\ue61fF20 Goodwill and Business Combinations and F24 Impairment.NOTE\ue61fF11 DEPRECIATION, AMORTIZATION AND\ue61eIMPAIRMENTSIn 2022 total depreciation, amortization and impairment losses (reversal) amount to \u20ac923 million (\u20ac849 million in 2021), of which: Straight-line depreciation and amortization of \u20ac\ue61f948\ue61fmillion (\u20ac906\ue61fmillion in 2021) for continuing operations recorded in: \u00b7 Cost of goods sold \u20ac\ue61f604\ue61fmillion (\u20ac564\ue61fmillion in 2021), \u00b7 Administrative costs \u20ac\ue61f85 million (\u20ac82 million in 2021), \u00b7 Research and development costs \u20ac\ue61f96\ue61fmillion (\u20ac100\ue61fmillion in 2021), \u00b7 Other \u20ac\ue61f163\ue61fmillion (\u20ac160\ue61fmillion in 2021), including \u20ac\ue61f146\ue61fmillion (\u20ac147\ue61fmillion in 2021) for PPA amortization (see note\ue61fF4 Other operating gains and losses);In 2022, the impairments include the impairment reversal of Special Chem assets for \u20ac37 million (see note F24 Impairment) and impairment losses of other non-performing assets for \u20ac(9) million.NOTE\ue61fF19 INTANGIBLE ASSETSAccounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.The asset is tested for impairment if (a) there is a trigger for impairment, and (b) annually for projects under development (see note F24 Impairment).Intangible assets are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an intangible asset is recognized in profit or loss at the moment of derecognition.In \u20ac million Development Patents and Customer Other Totalcoststrademarksrelationshipsintangible assetsGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 464 1,620 1,856 661 4,601Additions 48 4 \ue61f 23 75Disposals and closures -9 -21 \ue61f -4 -33Increase through business combinations 0 0 \ue61f 7 7Currency translation differences 12 79 117 49 257Other 1 2 \ue61f 4 7December 31, 2021 517 1,686 1,973 739 4,914Additions 67 3 \ue61f 24 94Disposals and closures -22 -16 \ue61f -5 -43Increase through business combinations 0 0 \ue61f 0 0Currency translation differences 7 60 93 22 183Other 7 11 \ue61f -15 3December 31, 2022 577 1,744 2,066 765 5,152Accumulated amortization \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -173 -930 -824 -531 -2,459Amortization -65 -104 -82 -13 -264Impairment 0 5 0 -5 0Disposals and closures 8 21 \ue61f 4 32Currency translation differences -3 -36 -36 -42 -116Other 0 -3 \ue61f -2 -5December 31, 2021 -233 -1,047 -941 -590 -2,812Amortization -63 -97 -90 -14 -265Impairment 0 0 0 0 0Reversal of impairment 0 0 \ue61f 8 8Disposals and closures 22 16 \ue61f 5 43Currency translation differences -2 -26 -29 -21 -78Other 0 0 \ue61f 0 0December 31, 2022 -277 -1,155 -1,061 -611 -3,104Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 291 690 1,032 129 2,140December 31, 2021 283 638 1,031 149 2,102December 31, 2022 300 589 1,005 154 2,048Intangibles mainly relate to the intangibles acquired through the acquisitions of Rhodia and Cytec. The average remaining useful life of Cytec\u2019s assets is 10 years. NOTE\ue61fF21 PROPERTY, PLANT AND EQUIPMENTAccounting policyGeneralProperty, plant and equipment are tangible items that: \u00b7 are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and \u00b7 are expected to be used during more than one period.The items of property, plant and equipment owned by the Group are recognized as property, plant and equipment when the following conditions are satisfied: \u00b7 it is probable that the future economic benefits associated with the asset will \ufb02ow to the Group; \u00b7 the cost of the asset can be measured reliably.In \u20ac million Land and Fixtures and Other tan-Property, plant and equipment Totalbuildingsequipmentgible assetsunder constructionGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 2,819 9,699 414 405 13,337Additions 18 88 13 452 571Disposals and closures -16 -101 -29 0 -146Increase through business combinations 4 2 0 0 7Currency translation differences 101 348 13 24 486Other 15 151 7 -193 -20December 31, 2021 2,941 10,187 418 688 14,235Additions 28 103 8 715 854Disposals and closures -28 -132 -19 0 -179Increase through business combinations 0 0 0 0 0Currency translation differences 44 206 8 15 273Other 35 284 11 -385 -55December 31, 2022 3,021 10,648 425 1,033 15,128Accumulated depreciation \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -1,478 -6,813 -329 \ue61f -8,620Depreciation -73 -436 -27 \ue61f -535Impairment -5 -4 0 \ue61f -9Reversal of impairment 1 0 0 \ue61f 1Disposals and closures 12 101 29 \ue61f 143Currency translation differences -43 -226 -10 \ue61f -278Other 5 2 0 \ue61f 7December 31, 2021 -1,580 -7,375 -337 \ue61f -9,291Depreciation -80 -464 -27 \ue61f -570Impairment 0 -6 0 \ue61f -6Reversal of impairment 8 21 0 \ue61f 29Disposals and closures 26 130 19 \ue61f 175Currency translation differences -25 -151 -7 \ue61f -183Other 3 26 0 \ue61f 30December 31, 2022 -1,648 -7,818 -351 \ue61f -9,816Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 1,342 2,886 85 405 4,717December 31, 2021 1,361 2,813 81 688 4,943December 31, 2022 1,373 2,830 75 1,033 5,311The line \u201cOther\u201d mainly includes changes following portfolio transactions and reclassification of property, plant and equipment under construction to the appropriate categories when they are ready for intended use. Cash \ufb02ows related to major investments are disclosed in note F16 Cash \ufb02ows from investing activities \u2013 acquisition/disposal of\ue61fassets\ue61fand\ue61finvestments. NOTE\ue61fF24 IMPAIRMENT Accounting policyGeneralAt the end of each reporting period, the Group reviews whether there is any indication that assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are allocated to individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified.The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate. \ue61f Future cash \ufb02ows are adjusted for risks not incorporated into the discount rate.\ue61fIf the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.When an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. An impairment loss recognized for goodwill shall not be reversed in a subsequent period.Assets other than non-current assets held for saleIn accordance with IAS 36 Impairment of Assets, the recoverable amount of property, plant and equipment, intangible assets, right-of-use assets, CGUs or groups of CGUs, including goodwill, and equity method investees corresponds to the higher of their fair value less costs of disposal, and their value in use. The latter equals the present value of the future cash \ufb02ows expected to be derived from each asset, CGU or group of CGUs, and equity method investees and is determined using the following inputs: \u00b7 business plan approved by management based on growth and profitability assumptions, taking into account past performances, forecast changes in the economic environment and expected market developments, including opportunity and risks resulting from climate change (taking into account the Solvay One Planet strategy - see note Climate change in the IFRS general accounting policies) and environmental regulations such as products phasing out. For further details, refer to the Risk Management Section. Such business plan generally covers five\ue61fyears, unless management is confident that projections over a longer period are reliable; \u00b7 consideration of a terminal value determined based on the cash \ufb02ows obtained by extrapolating the cash \ufb02ows of the last years of the business plan referred to above, affected by a long-term growth rate deemed appropriate for the activity and the location of the assets; \u00b7 discounting of expected cash \ufb02ows at a rate determined using the weighted average cost of capital formula.Discount rateWeighted average cost of capital (WACC) was computed using the same methodology applied in previous years after extensive benchmarking with Peers: \u00b7 A short term WACC of 6.6% was utilized in 2022 (5.1% in 2021) to discount the expected cash \ufb02ows of the initial four years, computed based on prevailing discount rates; \u00b7 A long term WACC of 6.5% was utilized in 2022 (6.8% in 2021) to discount the expected cash \ufb02ows of the fifth year and the Terminal Value, and is a rolling 8-year average of historical short term WACCs. These WACCs are in the low range of the observed Peers\u2019 WACC estimates.Long-term growth ratesThe long-term growth rates used in 2022 are based: \u00b7 on the comprehensive review of the entire business portfolio performed in 2019 with the definition of the G.R.O.W. Strategy when each CGU was assigned to one of three agile business segments that became effective as from 2020: Materials, Chemicals and Solutions, with different growth opportunities, consistent with the long term growth rates of the market they serve and the Group competitive position in those markets; and \u00b7 on the long term growth potential for Composite Materials and Technology Solutions assessed during the 2020 impairment test which remain very strong.After reassessment of the long-term growth prospects the Group concluded that the prior year rates are still applicable and were thus set at: \u00b7 2% for the Specialty Polymers CGU and 3% for the Composite Materials CGU; \u00b7 0% in the Segment Chemicals, except for Soda Ash and Peroxides, for which a 1% rate was set; and \u00b7 1% for the other CGUs in the Segment Solutions (excluding Technology Solutions, for which 1.5% was used, and Oil & Gas).Other key assumptions are specific to each CGU (utility price, volumes, margin, etc.) and are based on approved budgets and mid-term plans. Impairment Test 2022The impairment tests performed at CGU level at December 31, 2022, were based on the budget 2023 approved by the Board and the Mid Term Plan 2024-2026 which re\ufb02ect the economic rebound after the COVID crisis and the results of the structural cost saving measures adopted by the Group. They did not lead to any impairment of assets, as the recoverable amounts of the (groups of) CGUs were higher than their carrying amounts. More specifically, the difference between the (groups of) CGUs\u2019 value in use and their carrying amount (headroom) represented in all cases more than 10% of their carrying amount. As a result, for these (groups of) CGUs, a reasonable change in a key assumption relating to the recoverable amount for which the (groups of) CGUs is based, would not result in an impairment loss. For comparability purposes the sensitivity analysis to WACC and long term growth rates assumptions for Composite Materials and Technology Solutions are presented.Composite MaterialsIn \u20ac billion December 31, 2022Assumptions: Discount rate = 6.5% Long term growth rate = 3%Sensitivity to: Impact on recoverable amount Revised headroomDiscount rate -1% 1.7 3.3Discount rate +1% -0.9 0.8Long term growth rate -1% -0.8 0.8Long term growth rate +1% 1.5 3.2In \u20ac billion December 31, 2021Assumptions: Discount rate = 6.8% Long term growth rate = 3%Impact on recoverable amount Revised headroomDiscount rate -1% 1.3 2.4Discount rate +1% -0.7 0.4Long term growth rate -1% -0.6 0.5Long term growth rate +1% 1.0 2.1The table below shows the break-even analysis for the headroom of Composite Materials:Discount rate Long term growth rateBase rate Break-even rate Base rate Break-even rateDecember 31, 2022 6.5% 8.9% 3.0% 0.2%December 31, 2021 6.8% 8.6% 3.0% 0.6%Technology SolutionsIn \u20ac billion December 31, 2022Assumptions: \ue61fDiscount rate = 6.5%Long term growth rate = 1.5%Sensitivity to: Impact on recoverable amount Revised headroomDiscount rate -1% 0.7 1.6Discount rate +1% -0.4 0.5Long term growth rate -1% -0.4 0.6Long term growth rate +1% 0.6 1.5In \u20ac billion December 31, 2021\ue61fAssumptions: \ue61f Discount rate = 6.8%\ue61fLong term growth rate = 1.5%Sensitivity to: Impact on recoverable amount Revised headroomDiscount rate -1% 0.5 0.9Discount rate +1% -0.3 0.1Long term growth rate -1% -0.3 0.2Long term growth rate +1% 0.4 0.8The table below shows the break-even analysis for the headroom of Technology Solutions:Discount rate Long term growth rateBase rate Break-even rate Base rate Break-even rateDecember 31, 2022 6.5% 9.2% 1.5% -2.1%December 31, 2021 6.8% 8.3% 1.5% 0.3%Other small groups of assets (Solutions)In 2022, following the improvement in performance after the industrial reorganization of some production sites in the Special Chem CGU for Fluor Gases in Europe, the impairment loss booked in 2020, after the COVID-19 crisis has been reversed (\u20ac37 million; Operating Segment: Solutions)Rusvinyl equity investmentRusvinyl is a Russian joint venture in chlorovinyls (included in the Chemicals Segment) in which Solvay holds a 50% equity interest, together with Sibur who holds the remaining 50% equity interest.Russia's actions in Ukraine combined with the Group decision to suspend the dividends distribution from our Rusvinyl joint venture have been considered as a trigger for an impairment test. As a result, the Group performed an impairment test in Q2 and Q4, 2022 based on Dividend Discount Models prepared for different business scenarios, considering the following key assumptions: \u00b7 0% long term growth rate, to re\ufb02ect the long term impacts of the con\ufb02ict on economic growth in Russia, \u00b7 dividends stream would resume from 2027, assuming a long lasting con\ufb02ict and sanctions against Russia, \u00b7 a long term WACC used for the Terminal Value which re\ufb02ects pre-crisis levels and a long term uncertainty premium. The carrying amount of the Rusvinyl equity investment at the end of Q4 2022 was \u20ac431 million, based on the closing exchange rate of 77.9 RUB/EUR. The\ue61fresults of the impairment test indicated that no such impairment existed. ",
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"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-28-4": {
"value": "Deferred tax assetsDeferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profits will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits.The Group has \u20ac5,203 million (2021: \u20ac6,050 million) of tax losses carried forward for which no deferred tax assets were recognized. These losses relate to subsidiaries that have a history of losses, do not expire, and may not be used to offset taxable income elsewhere in the Group. The subsidiaries do not have any taxable temporary differences that could partly support the recognition of these losses as deferred tax assets. On this basis, the Group has determined that it cannot recognize deferred tax assets on these tax losses carried forward.Further details are provided in Note F7.C. Deferred taxes in the consolidated statement of financial position and F7.D Other Information.NOTE\ue61fF7INCOME TAXES IN THE INCOME STATEMENT AND THE STATEMENT OF FINANCIAL POSITIONAccounting policyCurrent taxesThe current tax payable is based on taxable profit of the year. Taxable profit differs from profit as reported in the consolidated income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group\u2019s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.Deferred taxesDeferred taxes are recognized for temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax bases used in the computation of taxable profit.Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.Deferred tax liabilities are generally recognized for all taxable temporary differences. No deferred tax liabilities are recognized following the initial recognition of goodwill. In addition, no deferred tax assets or liabilities are recognized with respect to the initial recognition of an asset or liability in a transaction which is not a business combination and affects neither accounting profit nor taxable profit.Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, joint operations, joint ventures, and associates, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets other than tax loss carryforwards are analyzed on a case by case basis, taking into account all relevant facts and circumstances. For example, a zero taxable profit, after deducting the amounts paid to retirees under a defined benefit plan and for which a deductible temporary difference existed, can justify the recognition of the underlying deferred tax assets. Recognition of deferred tax assets for tax loss carryforwards requires a positive taxable profit during the year that enables the utilization of tax losses that originated in the past. Because of uncertainties inherent to predicting such positive taxable profit, recognition of deferred tax assets from tax loss carryforwards is based on a case by case analysis, which is usually based on five-year profit forecasts, except with respect to any financial company for which ten-year financial profit forecasts are considered highly predictable and are consequently used. The corporate tax reporting team, which monitors the Group deferred tax positions, is involved in assessing deferred tax assets.Further details are provided in note\ue61fF7.C.Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets re\ufb02ects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amounts and when the Group intends to settle its current tax assets and liabilities on a net basis.Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.Current and deferred taxes for the periodCurrent and deferred taxes for the period are recognized as an expense or income in profit or loss, except when they relate to items that are recognized outside profit or loss (whether in other comprehensive income or directly in equity), in which case the tax is also recognized outside profit or loss, or when they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in the accounting for the business combination.Exception to the above, as from January 1, 2019, the Group applies the amendments to IAS 12, that apply to the income tax consequences of dividends recognized on or after the beginning of the earliest comparative period, i.e. January 1, 2018. In 2018, the income tax consequences of the coupons on perpetual hybrid bonds classified as equity were recognized in equity. As a result of the adoption of the amendment, those income tax consequences are now recognized in profit or loss.",
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"pp-value-28-5": {
"value": "Deferred tax assetsDeferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profits will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits.The Group has \u20ac5,203 million (2021: \u20ac6,050 million) of tax losses carried forward for which no deferred tax assets were recognized. These losses relate to subsidiaries that have a history of losses, do not expire, and may not be used to offset taxable income elsewhere in the Group. The subsidiaries do not have any taxable temporary differences that could partly support the recognition of these losses as deferred tax assets. On this basis, the Group has determined that it cannot recognize deferred tax assets on these tax losses carried forward.Further details are provided in Note F7.C. Deferred taxes in the consolidated statement of financial position and F7.D Other Information.NOTE\ue61fF7INCOME TAXES IN THE INCOME STATEMENT AND THE STATEMENT OF FINANCIAL POSITIONAccounting policyCurrent taxesThe current tax payable is based on taxable profit of the year. Taxable profit differs from profit as reported in the consolidated income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group\u2019s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.Deferred taxesDeferred taxes are recognized for temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax bases used in the computation of taxable profit.Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.Deferred tax liabilities are generally recognized for all taxable temporary differences. No deferred tax liabilities are recognized following the initial recognition of goodwill. In addition, no deferred tax assets or liabilities are recognized with respect to the initial recognition of an asset or liability in a transaction which is not a business combination and affects neither accounting profit nor taxable profit.Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, joint operations, joint ventures, and associates, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets other than tax loss carryforwards are analyzed on a case by case basis, taking into account all relevant facts and circumstances. For example, a zero taxable profit, after deducting the amounts paid to retirees under a defined benefit plan and for which a deductible temporary difference existed, can justify the recognition of the underlying deferred tax assets. Recognition of deferred tax assets for tax loss carryforwards requires a positive taxable profit during the year that enables the utilization of tax losses that originated in the past. Because of uncertainties inherent to predicting such positive taxable profit, recognition of deferred tax assets from tax loss carryforwards is based on a case by case analysis, which is usually based on five-year profit forecasts, except with respect to any financial company for which ten-year financial profit forecasts are considered highly predictable and are consequently used. The corporate tax reporting team, which monitors the Group deferred tax positions, is involved in assessing deferred tax assets.Further details are provided in note\ue61fF7.C.Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets re\ufb02ects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amounts and when the Group intends to settle its current tax assets and liabilities on a net basis.Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.Current and deferred taxes for the periodCurrent and deferred taxes for the period are recognized as an expense or income in profit or loss, except when they relate to items that are recognized outside profit or loss (whether in other comprehensive income or directly in equity), in which case the tax is also recognized outside profit or loss, or when they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in the accounting for the business combination.Exception to the above, as from January 1, 2019, the Group applies the amendments to IAS 12, that apply to the income tax consequences of dividends recognized on or after the beginning of the earliest comparative period, i.e. January 1, 2018. In 2018, the income tax consequences of the coupons on perpetual hybrid bonds classified as equity were recognized in equity. As a result of the adoption of the amendment, those income tax consequences are now recognized in profit or loss.",
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"pp-value-29-4": {
"value": "Defined benefit obligations - GeneralThe actuarial assumptions used in determining the defined benefit obligations at December\ue61f31 as well as the annual cost can be found in note\ue61fF31.A. Provisions for employee benefits. All main employee benefits plans are assessed annually by independent actuaries. Discount rates and in\ufb02ation rates are defined centrally by management. The other assumptions (such as future salary increases and expected rates of medical care cost increases) are defined at a local level. All plans are supervised by the Group\u2019s central Human Resources department with the help of a central actuary to check the reasonableness of the results and ensure consistency in reporting. All assumptions are reviewed at each reporting date.Further details are provided in note\ue61fF31.A. Provisions for employee benefits.Environmental provisionsEnvironmental provisions are managed and coordinated jointly by the Environmental Rehabilitation department and the Finance department. In case of environmental impacts stemming from historical production activities, generally, no provision is recognized for remediation works beyond the 20 years due to the inherent high level of uncertainty as to the timing and amount.The forecasts of expenses are discounted to their present value. The discount rates fixed by geographical area correspond to the average risk-free rate on 10-year government bonds or the in\ufb02ation rate if higher. These rates are set annually by the Finance Department and can be revised based on the evolution of economic parameters of the country involved. To re\ufb02ect the passage of time, the provisions are increased each year at the discount rates described above.Further details are provided in note\ue61fF31.B. Provisions other than for employee benefits.Provisions for litigationsAny significant litigations (post M&A and other, including threat of litigation) are reviewed by Solvay\u2019s in-house lawyers with the support, when appropriate, of external counsels at least every quarter together with the Finance and Insurance Departments. This review includes an assessment of the need to recognize provisions, disclose contingent liabilities and/or contingent assets. Further details are provided in note\ue61fF31.B. Provisions other than for employee benefits and F36 Contingent assets, liabilities and financial guarantees.F31.B. Provisions other than for employee benefits Accounting policyGeneralProvisions are recognized when (a) the Group has a present obligation (legal or constructive) as a result of a past event, (b) it is probable that the Group will be required to settle the obligation, and (c) a reliable estimate can be made of the amount of the obligation.The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount is the present value of expenditures required to settle the obligation. Impacts of changes in discount rates are generally recognized in the financial result.When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received when the Group settles the obligation.RestructuringsA restructuring provision is recognized when the Group has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the entity.Environmental remediation costsEnvironmental liabilities are mainly related to non-ongoing activities (shut-down sites, discontinued activities or divested activities where Solvay maintains certain commitments) and, to a lower extent, to ongoing activities (see comments below).An environmental provision is recognized, in accordance to IAS 37, when there is a current legal or constructive obligation resulting from past events which will result in a probable out\ufb02ow of resources (expenses / cash outs) to settle it and for which a reliable estimate of such out\ufb02ows and timing can be made.The environmental expenses encompass, but are not limited to, the following key matters \u00b7 Sampling and analytical costs for soil and ground water monitoring \u00b7 Cost related to dismantling when required to meet a remediation or permit obligation \u00b7 Asbestos removal when obligated by regulation \u00b7 Environmental investigations and studies (Risk Assessments, Phase I and II soil and groundwater) The closing amount of the environmental provisions is based on the net present value of the future cash \ufb02ows needed, for current and future years, to settle remediation obligations. Forecast expenditures are based on external consultant estimates, where appropriate and possible. Future expenditures are forecast and revised biannually and validated quarterly by Solvay finance and suitably qualified industrial experts led by the Group Environmental Rehabilitation Director and benefit from inputs of legal department staff for the evolution of Environmental Regulations.In the absence of probable obligations, a contingent liability may be disclosed to represent the future possible liability. In some cases, contingent liabilities cannot be quantified. See Note F36 Contingent assets, liabilities and financial guarantees.",
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"pp-value-31-4": {
"value": "Leases \u2013 Identifying whether a contract includes a leaseThe Group enters into various contracts to obtain goods and services. Determining whether those contracts include a lease requires judgment. Elements that are considered include assessing whether or not there is an identified asset. To make the determination the Group considers whether or not it has the right to obtain substantially all of the economic benefit of the asset(s) throughout the period of use. Additionally, the Group assesses the extent of its decision-making rights and the existence of any substantive substitution rights. All facts and circumstances relevant to the assessment are considered and the identification of a lease is determined with the support of the departments that have the relevant knowledge, and which mainly includes the GBU management. Refer to note F22 Right-of-use assets and lease obligations for the leases that were identified by the Group and accounted for in accordance with IFRS 16 Leases.Leases \u2013 Assessment of lease termDetermining the lease term requires judgment. Elements that are considered include assessing the probability that early termination options or extension options will be exercised. All facts and circumstances relevant to the assessment are considered, and the main ones have been described in note F22 Right-of-use assets and lease obligations. Lease terms are determined with the support of the departments that have the relevant knowledge, and that mainly includes the Purchasing department, and the Facilities department.Accounting policyDefinition of a lease At inception of a contract, which generally coincides with the date the contract is signed, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.An asset is typically identified by being explicitly specified in a contract. However, an asset can also be identified by being implicitly specified at the time that the asset is made available for use by the customer. If the supplier has a substantive substitution right, then the asset is not identified. A substantive substitution right means that (a) the supplier has the practical ability to substitute the asset throughout the period of use, and (b) would economically benefit from doing so. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether, throughout the period of use, it has: \u00b7 the right to obtain substantially all of the economic benefits from use of the identified asset; and \u00b7 the right to direct the use of the identified asset. This is generally the case when the Group has the decision-making rights regarding how and for what purpose the asset is used. The Group\u2019s leased assets relate mainly to buildings, transportation equipment, and industrial equipment.Lease termThe Group determines the lease term as the non-cancellable period of a lease, together with both: \u00b7 periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and \u00b7 periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option.In its assessment, the Group considers the impact of the following factors (non-exhaustive): \u00b7 contractual terms and conditions for the optional periods, compared with market rates; \u00b7 significant leasehold improvements undertaken (or expected to be undertaken) over the term of the contract; \u00b7 costs relating to the termination of the lease, including relocation costs, costs of identifying another underlying asset suitable for the Group\u2019s needs, costs of integrating a new asset into the Group\u2019s operations, and termination penalties; \u00b7 the importance of that underlying asset to the Group\u2019s operations, including the availability of suitable alternatives; \u00b7 conditionality associated with exercising the option (i.e. When the option can be exercised only if one or more conditions are met), and the likelihood that those conditions will exist; and \u00b7 past practice.Right-of-use asset and lease liabilityThe Group recognizes a right-of-use asset and a lease liability at the lease commencement date, which is the date that the lessor makes the asset available for use by the Group except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. The right-of-use assets are presented separately in the consolidated statement of financial position, and the lease liabilities are presented as part of financial debt.Right-of-use assetThe right-of-use asset is initially measured at cost, which comprises: \u00b7 the amount of the initial measurement of the lease liability; \u00b7 any lease payments made at or before the commencement date, less any lease incentive received; and \u00b7 any initial direct costs incurred by the Group.After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any accumulated impairment losses. Right-of-use assets are depreciated using the straight-line depreciation method, from the commencement date to (a) the end of the useful life of the underlying asset, in case the lease transfers ownership of the underlying asset to the Group by the end of the lease term, or the lease contains a purchase option that the Group is reasonably certain to exercise, or (b) the earlier of the end of the useful life and the end of the lease term, in all other cases. Lease liabilityThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the respective Group entity\u2019s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise the following: \u00b7 fixed payments, less any lease incentives receivable; \u00b7 variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; \u00b7 amounts expected to be payable by the Group under residual value guarantees; \u00b7 the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and \u00b7 payments of penalties for early terminating the lease, if the Group is reasonably certain to exercise an option to early terminate the lease.Service components (e.g. Utilities, maintenance, insurance, \u2026) are excluded from the measurement of the lease liability. After the commencement date, the lease liability is measured by: \u00b7 increasing the carrying amount to re\ufb02ect interest on the lease liability; \u00b7 reducing the carrying amount to re\ufb02ect the lease payments made; and \u00b7 remeasuring the carrying amount to re\ufb02ect any reassessment or lease modifications, or to re\ufb02ect the impact from a revised index or rate.Leasing of PalladiumThe Group uses palladium, a precious metal, for certain of its operations. Next to purchasing this palladium, the Group also enters into various \u201cleasing\u201d agreements with financial institutions that give the Group the right to use palladium for a certain period and then return it at the end of the \u201clease\u201d. Based on our analysis of these agreements, these contracts are not in the scope of IFRS 16 Leases or IFRS 9 Financial Instruments. Due to the lack of clear IFRS guidance, the Group applied judgment to determine whether these rights and obligations shall be accounted for on a gross or a net basis. Considering that the Group bears no price risk during the \u2018lease\u2019 term and is not in full control of the asset (in accordance with the IFRS Conceptual Framework), the Group believes a net presentation gives a better view on the economic substance of the transaction. As a result, only accruals are recorded for the production losses and regeneration costs and the \u201clease\u201d fee is recognized within cost of sales. At the end of 2022, the total (gross) value of palladium leased still to be returned amounted to \u20ac59 million (end of 2021: \u20ac50 million) valued at the year-end closing rate.",
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"pp-value-33-3": {
"value": "NOTES TO THE CONSOLIDATED INCOME STATEMENTPreliminary comment: consistent with the presentation in the consolidated income statement, the notes to the consolidated income statement as presented hereafter do not include the consolidated income statement impacts from discontinued operations that are presented on a separate line. Those are disclosed in note F8 Discontinued operations. NOTE\ue61fF10 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEAccounting policyIn accordance with IAS\ue61f1 Presentation of Financial Statements, the Group elected to present two statements, i.e. a consolidated income statement immediately followed by a consolidated statement of comprehensive income.The components of other comprehensive income (OCI) are presented before related tax effects with one amount shown for the aggregate amount of income tax relating to those components. Tax impacts are further disclosed in this note.",
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"pp-value-34-2": {
"value": "NOTE F1 REVENUE AND SEGMENT INFORMATIONAccounting policyIFRS 15 establishes a five-step model to account for revenue arising from contracts with customers: \u00b7 Identify the contract, \u00b7 Identify the performance obligations, \u00b7 Determine the transaction price, \u00b7 Allocate the transaction price to the performance obligations in the contract, and \u00b7 Recognize revenue when or as the Group satisfies a performance obligation.Under IFRS 15, revenue is recognized at an amount that re\ufb02ects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Sale of goods: Contracts can be short term (including based only on a purchase order) or long term, some have minimum off-take requirements. As the Group is in the business of selling advanced materials and specialty chemicals, contracts with customers generally concern the sale of goods. As a result, revenue recognition generally occurs at a point in time when control of the chemicals is transferred to the customer, generally on delivery of the goods.Distinct elements: a good or service that is promised to a customer is distinct if both of the following criteria are met: (a) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e. The good or service is capable of being distinct); and (b) the Group\u2019s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e. The promise to transfer the good or service is distinct within the context of the contract).The revenue of the Group consists mainly of sales of chemicals, which qualify as separate performance obligations. Value-added services \u2013 mainly customer assistance services \u2013 corresponding to Solvay\u2019s know-how are rendered predominantly over the period that the corresponding goods are sold to the customer. Variable consideration: some contracts with customers provide trade discounts or volume rebates. Trade discounts and volume rebates give rise to variable consideration under IFRS 15, and are required to be estimated at contract inception and subsequently at each reporting date. IFRS 15 requires the estimated variable consideration to be constrained to prevent overstatement of revenue. Moment of recognition of revenue: revenue is recognized when (or as) the Group satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Substantially all revenue stems from performance obligations satisfied at a point in time, i.e. The sale of goods. Revenue recognition for those takes into account the following: \u00b7 The Group has a present right to payment for the asset; \u00b7 The customer has legal title to the asset; \u00b7 The Group has transferred physical possession of the asset; \u00b7 The customer has the significant risks and rewards of ownership of the asset (in this respect, incoterms are considered); and \u00b7 The customer has accepted the asset.Products sold to customers generally cannot be returned, other than for performance deficiencies. Customer acceptance clauses are in many cases a formality that would not affect the Group\u2019s determination of when the customer has obtained control of the goods. Revenue from services is recognized in the period those services have been rendered.The Group sells its chemicals to its customers, (a) directly, (b) through distributors, and (c) with the assistance of agents. When the Group delivers a product to distributors for sale to end customers, the Group evaluates whether that distributor has obtained control of the product at that point in time. No revenue is recognized upon delivery of a product to a customer or distributor if the delivered product is held on consignment. Indicators of consignment inventory include: \u00b7 The product is controlled by the Group until a specified event occurs, such as the sale of the product to a customer of the distributor or until a specified period expires; \u00b7 The Group is able to require the return of the product or transfer the product to a third party (such as another distributor); and \u00b7 The distributor does not have an unconditional obligation to pay for the product (although he might be required to pay a deposit). \u00b7 Agents facilitate sales and do not purchase and resell the goods to the end customer. Warranties: warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Substantially all warranties do not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications, and are hence accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Licensing: In case of performance obligations relation to licensing intellectual property (IP), the Group assesses if it grants a right to access the IP as it exists throughout the license period or a right to use the IP as it exists at the point in time at which the license is granted. If the performance obligation is to grant a right to access, then the related revenue is recognized over the license period; otherwise, it is recognized at a point in time, i.e. when the license period starts or when the customer starts using the IP. The Group assesses if the license provided can be considered as being distinct in the context of the contract. If not, the license will have to be bundled with other goods or services provided in the contract. Currently the Group grants a right to use IP, which means that revenue recognition occurs at a point in time.An Operating Segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity\u2019s chief operating decision maker and for which discrete financial information is available. Solvay\u2019s chief operating decision maker is the Chief Executive Officer.External net sales by cluster The Oil & Gas GBU was created on July 1, 2021, regrouping activities that were previously included in Novecare and Technology Solutions. The following table presents restated figures for these GBUs since the beginning of 2021.In \u20ac million 2022 2021Materials 4,075 2,903Specialty Polymers 3,121 2,173Composite Materials 954 730Chemicals 4,496 3,357Soda Ash & Derivatives 2,221 1,509Peroxides 773 636Silica 631 467Coatis 870 745Solutions 4,846 3,838Novecare 1,905 1,547Special Chem 1,040 840Technology Solutions 740 560Aroma Performance 575 473Oil and Gas 586 418Corporate & Business Services 9 7CBS and NBD 9 7Total 13,426 10,105There are no individual customers that contribute 10% or more to the Group\u2019s revenue or any individual segment\u2019s revenue in either 2022 or 2021.Sales by marketSales by market are presented in the Business Review, see note B1. Net sales by country and region The sales disclosed below are allocated based on the customers\u2019 location.In \u20ac million 2022 % 2021 %Belgium 230 2% 170 2%Germany 940 7% 737 7%Italy 546 4% 431 4%France 479 4% 363 4%Netherlands 104 1% 88 1%Spain 191 1% 144 1%European Union - Other 706 5% 491 5%European Union 3,198 24% 2,423 24%Europe - Other 431 3% 352 3%United States 3,362 24% 2,496 25%Canada 170 2% 134 1%North America 3,532 26% 2,630 26%Brazil 1,156 9% 813 8%Mexico 288 2% 215 2%Latin America - Other 421 3% 280 3%Latin America 1,865 14% 1,308 13%Australia 121 1% 90 1%China 1,533 11% 1,203 12%Hong Kong 65 0% 42 0%India 272 2% 240 2%Indonesia 165 1% 115 1%Japan 460 3% 340 3%Russia 14 0% 66 1%Saudi Arabia 134 1% 128 1%South Korea 367 3% 301 3%Thailand 214 2% 175 2%Turkey 97 1% 74 1%Other 958 7% 617 6%Asia and rest of the world 4,400 33% 3,391 34%Total 13,426 100% 10,105 100%2022 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesIncome statement items\ue61f \ue61f \ue61f \ue61f \ue61fNet sales (including inter-segment sales) 4,078 4,552 4,857 9 13,496 - Inter-segment sales -3 -56 -10 0 -70Net sales 4,075 4,496 4,846 9 13,426Revenue from non-core activities 109 948 42 1,546 2,645Gross margin 1,561 1,085 1,303 80 4,029Depreciation and amortization 363 261 207 93 923Earnings from associates and joint ventures 9 153 7 2 171Underlying EBITDA(1) 1,290 1,188 944 -194 3,229EBIT 0 0 0 0 2,221Net financial charges \ue61f \ue61f \ue61f \ue61f -70Income taxes \ue61f \ue61f \ue61f \ue61f -217Profit for the year from discontinued operations \ue61f \ue61f \ue61f \ue61f 0Profit/(loss) for the year \ue61f \ue61f \ue61f \ue61f 1,9342021 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesIncome statement items\ue61f \ue61f \ue61f \ue61f \ue61fNet sales (including inter-segment sales) 2,912 3,395 3,844 7 10,157 Inter-segment sales -9 -38 -6 0 -53Net sales 2,903 3,357 3,838 7 10,105Revenue from non-core activities 19 433 30 848 1,330Gross margin 1,102 838 986 0 2,926Depreciation and amortization 313 174 266 95 848Earnings from associates and joint ventures 8 141 7 2 158Underlying EBITDA(1) 879 1,009 701 -232 2,356EBIT 1,190Net financial charges \ue61f \ue61f \ue61f \ue61f -96Income taxes \ue61f \ue61f \ue61f \ue61f -110Profit for the year from discontinued operations \ue61f \ue61f \ue61f \ue61f 5Profit/(loss) for the year \ue61f \ue61f \ue61f \ue61f 989NOTE\ue61fF3 REVENUE FROM NON-CORE ACTIVITIESThis revenue primarily comprises commodity and utility third party transactions, non-core licensing transactions, and other revenue, considered to not correspond to Solvay\u2019s core business. The increase compared to 2021 is mainly related to higher gas and electricity prices.",
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},
"pp-value-34-3": {
"value": "NOTE F1 REVENUE AND SEGMENT INFORMATIONAccounting policyIFRS 15 establishes a five-step model to account for revenue arising from contracts with customers: \u00b7 Identify the contract, \u00b7 Identify the performance obligations, \u00b7 Determine the transaction price, \u00b7 Allocate the transaction price to the performance obligations in the contract, and \u00b7 Recognize revenue when or as the Group satisfies a performance obligation.Under IFRS 15, revenue is recognized at an amount that re\ufb02ects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Sale of goods: Contracts can be short term (including based only on a purchase order) or long term, some have minimum off-take requirements. As the Group is in the business of selling advanced materials and specialty chemicals, contracts with customers generally concern the sale of goods. As a result, revenue recognition generally occurs at a point in time when control of the chemicals is transferred to the customer, generally on delivery of the goods.Distinct elements: a good or service that is promised to a customer is distinct if both of the following criteria are met: (a) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e. The good or service is capable of being distinct); and (b) the Group\u2019s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e. The promise to transfer the good or service is distinct within the context of the contract).The revenue of the Group consists mainly of sales of chemicals, which qualify as separate performance obligations. Value-added services \u2013 mainly customer assistance services \u2013 corresponding to Solvay\u2019s know-how are rendered predominantly over the period that the corresponding goods are sold to the customer. Variable consideration: some contracts with customers provide trade discounts or volume rebates. Trade discounts and volume rebates give rise to variable consideration under IFRS 15, and are required to be estimated at contract inception and subsequently at each reporting date. IFRS 15 requires the estimated variable consideration to be constrained to prevent overstatement of revenue. Moment of recognition of revenue: revenue is recognized when (or as) the Group satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Substantially all revenue stems from performance obligations satisfied at a point in time, i.e. The sale of goods. Revenue recognition for those takes into account the following: \u00b7 The Group has a present right to payment for the asset; \u00b7 The customer has legal title to the asset; \u00b7 The Group has transferred physical possession of the asset; \u00b7 The customer has the significant risks and rewards of ownership of the asset (in this respect, incoterms are considered); and \u00b7 The customer has accepted the asset.Products sold to customers generally cannot be returned, other than for performance deficiencies. Customer acceptance clauses are in many cases a formality that would not affect the Group\u2019s determination of when the customer has obtained control of the goods. Revenue from services is recognized in the period those services have been rendered.The Group sells its chemicals to its customers, (a) directly, (b) through distributors, and (c) with the assistance of agents. When the Group delivers a product to distributors for sale to end customers, the Group evaluates whether that distributor has obtained control of the product at that point in time. No revenue is recognized upon delivery of a product to a customer or distributor if the delivered product is held on consignment. Indicators of consignment inventory include: \u00b7 The product is controlled by the Group until a specified event occurs, such as the sale of the product to a customer of the distributor or until a specified period expires; \u00b7 The Group is able to require the return of the product or transfer the product to a third party (such as another distributor); and \u00b7 The distributor does not have an unconditional obligation to pay for the product (although he might be required to pay a deposit). \u00b7 Agents facilitate sales and do not purchase and resell the goods to the end customer. Warranties: warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Substantially all warranties do not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications, and are hence accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Licensing: In case of performance obligations relation to licensing intellectual property (IP), the Group assesses if it grants a right to access the IP as it exists throughout the license period or a right to use the IP as it exists at the point in time at which the license is granted. If the performance obligation is to grant a right to access, then the related revenue is recognized over the license period; otherwise, it is recognized at a point in time, i.e. when the license period starts or when the customer starts using the IP. The Group assesses if the license provided can be considered as being distinct in the context of the contract. If not, the license will have to be bundled with other goods or services provided in the contract. Currently the Group grants a right to use IP, which means that revenue recognition occurs at a point in time.An Operating Segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity\u2019s chief operating decision maker and for which discrete financial information is available. Solvay\u2019s chief operating decision maker is the Chief Executive Officer.GeneralSolvay is organized into four Operating Segments: \u00b7 Materials offer a unique portfolio of high-performance polymers and composite technologies used primarily in sustainable mobility applications. Its solutions enable weight reduction and enhance performance while improving CO and energy efficiency. Major markets served include next-2generation mobility in automotive and aerospace, healthcare and electronics. \u00b7 Chemicals host chemical intermediate businesses focused on mature and resilient markets. Solvay is a world leader in soda ash and peroxides and major markets served include building and construction, consumer goods and food. Its Silica, Coatis and Rusvinyl businesses are also high quality assets with strong positions in their markets. \u00b7 Solutions offer a unique formulation & application expertise through customized specialty formulations for surface chemistry & liquid behavior, maximizing yield and efficiency of the processes they are used in while minimizing the eco-impact. Novecare, Technology Solutions, Aroma, Special Chem and Oil & Gas focus on specific areas such as resources (improving the extraction yield of metals, minerals and oil), industrial applications (such as coatings) or consumer goods and healthcare (including vanillin and guar for home and personal care). \u00b7 Corporate & Business Services includes corporate and other business services, such as Group research & innovation or energy services, whose mission is to optimize energy consumption and reduce CO emissions.2External net sales by cluster The Oil & Gas GBU was created on July 1, 2021, regrouping activities that were previously included in Novecare and Technology Solutions. The following table presents restated figures for these GBUs since the beginning of 2021.In \u20ac million 2022 2021Materials 4,075 2,903Specialty Polymers 3,121 2,173Composite Materials 954 730Chemicals 4,496 3,357Soda Ash & Derivatives 2,221 1,509Peroxides 773 636Silica 631 467Coatis 870 745Solutions 4,846 3,838Novecare 1,905 1,547Special Chem 1,040 840Technology Solutions 740 560Aroma Performance 575 473Oil and Gas 586 418Corporate & Business Services 9 7CBS and NBD 9 7Total 13,426 10,105There are no individual customers that contribute 10% or more to the Group\u2019s revenue or any individual segment\u2019s revenue in either 2022 or 2021.Sales by marketSales by market are presented in the Business Review, see note B1. Net sales by country and region The sales disclosed below are allocated based on the customers\u2019 location.In \u20ac million 2022 % 2021 %Belgium 230 2% 170 2%Germany 940 7% 737 7%Italy 546 4% 431 4%France 479 4% 363 4%Netherlands 104 1% 88 1%Spain 191 1% 144 1%European Union - Other 706 5% 491 5%European Union 3,198 24% 2,423 24%Europe - Other 431 3% 352 3%United States 3,362 24% 2,496 25%Canada 170 2% 134 1%North America 3,532 26% 2,630 26%Brazil 1,156 9% 813 8%Mexico 288 2% 215 2%Latin America - Other 421 3% 280 3%Latin America 1,865 14% 1,308 13%Australia 121 1% 90 1%China 1,533 11% 1,203 12%Hong Kong 65 0% 42 0%India 272 2% 240 2%Indonesia 165 1% 115 1%Japan 460 3% 340 3%Russia 14 0% 66 1%Saudi Arabia 134 1% 128 1%South Korea 367 3% 301 3%Thailand 214 2% 175 2%Turkey 97 1% 74 1%Other 958 7% 617 6%Asia and rest of the world 4,400 33% 3,391 34%Total 13,426 100% 10,105 100%2022 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesIncome statement items\ue61f \ue61f \ue61f \ue61f \ue61fNet sales (including inter-segment sales) 4,078 4,552 4,857 9 13,496 - Inter-segment sales -3 -56 -10 0 -70Net sales 4,075 4,496 4,846 9 13,426Revenue from non-core activities 109 948 42 1,546 2,645Gross margin 1,561 1,085 1,303 80 4,029Depreciation and amortization 363 261 207 93 923Earnings from associates and joint ventures 9 153 7 2 171Underlying EBITDA(1) 1,290 1,188 944 -194 3,229EBIT 0 0 0 0 2,221Net financial charges \ue61f \ue61f \ue61f \ue61f -70Income taxes \ue61f \ue61f \ue61f \ue61f -217Profit for the year from discontinued operations \ue61f \ue61f \ue61f \ue61f 0Profit/(loss) for the year \ue61f \ue61f \ue61f \ue61f 1,934December 31, 2022 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesStatement of financial position and other items \ue61f \ue61f \ue61f \ue61f \ue61fCapital expenditures 400 284 242 96 1,022Investments 0 2 0 12 15Working capital \ue61d \ue61d \ue61d \ue61d \ue61dInventories 853 541 693 21 2,108Trade receivables 513 677 607 229 2,026Trade payables 510 757 514 515 2,296(1) Underlying EBITDA is a key performance indicator followed by management and includes other elements than those presented above (see Business Review section for reconciliation of Underlying with IFRS figures).2021 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesIncome statement items\ue61f \ue61f \ue61f \ue61f \ue61fNet sales (including inter-segment sales) 2,912 3,395 3,844 7 10,157 Inter-segment sales -9 -38 -6 0 -53Net sales 2,903 3,357 3,838 7 10,105Revenue from non-core activities 19 433 30 848 1,330Gross margin 1,102 838 986 0 2,926Depreciation and amortization 313 174 266 95 848Earnings from associates and joint ventures 8 141 7 2 158Underlying EBITDA(1) 879 1,009 701 -232 2,356EBIT 1,190Net financial charges \ue61f \ue61f \ue61f \ue61f -96Income taxes \ue61f \ue61f \ue61f \ue61f -110Profit for the year from discontinued operations \ue61f \ue61f \ue61f \ue61f 5Profit/(loss) for the year \ue61f \ue61f \ue61f \ue61f 989December 31, 2021 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesStatement of financial position and other items \ue61f \ue61f \ue61f \ue61f \ue61fCapital expenditures 250 212 172 101 736Investments 1 1 32 11 44Working capital \ue61d \ue61d \ue61d \ue61d \ue61dInventories 684 425 607 28 1,745Trade receivables 382 563 577 283 1,805Trade payables 379 676 515 560 2,131(1) Underlying EBITDA is a key performance indicator followed by management and includes other elements than those presented above (see Business Review section for reconciliation of Underlying with IFRS figures).NON-CURRENT ASSETS, CAPITAL EXPENDITURES AND INVESTMENTS BY COUNTRY AND REGION In \u20ac million Non-current assets Capital expenditures and investmentsDecember 31, 2022 % December 31, 2021 % 2022 % 2021 %Belgium 288 2% 272 2% -32 3% -22 3%Germany 438 4% 400 3% -55 5% -44 6%Italy 655 5% 626 5% -125 12% -111 14%France 2,876 24% 2,764 24% -242 23% -178 23%Spain 130 1% 134 1% -13 1% -16 2%European Union - Other 314 3% 319 3% -37 4% -39 5%European Union 4,702 38% 4,516 39% -504 49% -409 52%Europe - Other 150 1% 159 1% -20 2% -17 2%United States 5,273 43% 5,047 43% -348 34% -201 26%Canada 175 1% 177 2% -12 1% -7 1%North America 5,448 45% 5,225 45% -360 35% -208 27%Brazil 277 2% 218 2% -34 3% -27 3%Latin America - Other 22 0% 19 0% -5 1% -5 1%Latin America 299 2% 238 2% -39 4% -32 4%Russia 432 4% 293 3% 0 0% 0 0%Thailand 91 1% 99 1% -5 0% -5 1%China 588 5% 598 5% -79 8% -90 12%South Korea 73 1% 77 1% -7 1% -4 1%India 233 2% 240 2% -8 1% -5 1%Singapore 3 0% 36 0% -3 0% -3 0%Japan 19 0% 18 0% -3 0% -3 0%Other 186 2% 185 2% -6 1% -3 0%Asia and rest of the world 1,624 13% 1,547 13% -112 11% -113 15%Total 12,223 100% 11,684 100% -1,036 100% -779 100%Non-current assets are those other than deferred tax assets, loans and other assets, and other financial instruments. Capital expenditures and investments include acquisitions of property, plant and equipment, right-of-use assets, intangible assets and investments in subsidiaries and other investments (joint operations, joint ventures and associates). Both exclude discontinued operations. ",
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"pp-value-34-4": {
"value": "NOTE F1 REVENUE AND SEGMENT INFORMATIONAccounting policyIFRS 15 establishes a five-step model to account for revenue arising from contracts with customers: \u00b7 Identify the contract, \u00b7 Identify the performance obligations, \u00b7 Determine the transaction price, \u00b7 Allocate the transaction price to the performance obligations in the contract, and \u00b7 Recognize revenue when or as the Group satisfies a performance obligation.Under IFRS 15, revenue is recognized at an amount that re\ufb02ects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Sale of goods: Contracts can be short term (including based only on a purchase order) or long term, some have minimum off-take requirements. As the Group is in the business of selling advanced materials and specialty chemicals, contracts with customers generally concern the sale of goods. As a result, revenue recognition generally occurs at a point in time when control of the chemicals is transferred to the customer, generally on delivery of the goods.Distinct elements: a good or service that is promised to a customer is distinct if both of the following criteria are met: (a) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e. The good or service is capable of being distinct); and (b) the Group\u2019s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e. The promise to transfer the good or service is distinct within the context of the contract).The revenue of the Group consists mainly of sales of chemicals, which qualify as separate performance obligations. Value-added services \u2013 mainly customer assistance services \u2013 corresponding to Solvay\u2019s know-how are rendered predominantly over the period that the corresponding goods are sold to the customer. Variable consideration: some contracts with customers provide trade discounts or volume rebates. Trade discounts and volume rebates give rise to variable consideration under IFRS 15, and are required to be estimated at contract inception and subsequently at each reporting date. IFRS 15 requires the estimated variable consideration to be constrained to prevent overstatement of revenue. Moment of recognition of revenue: revenue is recognized when (or as) the Group satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Substantially all revenue stems from performance obligations satisfied at a point in time, i.e. The sale of goods. Revenue recognition for those takes into account the following: \u00b7 The Group has a present right to payment for the asset; \u00b7 The customer has legal title to the asset; \u00b7 The Group has transferred physical possession of the asset; \u00b7 The customer has the significant risks and rewards of ownership of the asset (in this respect, incoterms are considered); and \u00b7 The customer has accepted the asset.Products sold to customers generally cannot be returned, other than for performance deficiencies. Customer acceptance clauses are in many cases a formality that would not affect the Group\u2019s determination of when the customer has obtained control of the goods. Revenue from services is recognized in the period those services have been rendered.The Group sells its chemicals to its customers, (a) directly, (b) through distributors, and (c) with the assistance of agents. When the Group delivers a product to distributors for sale to end customers, the Group evaluates whether that distributor has obtained control of the product at that point in time. No revenue is recognized upon delivery of a product to a customer or distributor if the delivered product is held on consignment. Indicators of consignment inventory include: \u00b7 The product is controlled by the Group until a specified event occurs, such as the sale of the product to a customer of the distributor or until a specified period expires; \u00b7 The Group is able to require the return of the product or transfer the product to a third party (such as another distributor); and \u00b7 The distributor does not have an unconditional obligation to pay for the product (although he might be required to pay a deposit). \u00b7 Agents facilitate sales and do not purchase and resell the goods to the end customer. Warranties: warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Substantially all warranties do not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications, and are hence accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Licensing: In case of performance obligations relation to licensing intellectual property (IP), the Group assesses if it grants a right to access the IP as it exists throughout the license period or a right to use the IP as it exists at the point in time at which the license is granted. If the performance obligation is to grant a right to access, then the related revenue is recognized over the license period; otherwise, it is recognized at a point in time, i.e. when the license period starts or when the customer starts using the IP. The Group assesses if the license provided can be considered as being distinct in the context of the contract. If not, the license will have to be bundled with other goods or services provided in the contract. Currently the Group grants a right to use IP, which means that revenue recognition occurs at a point in time.An Operating Segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity\u2019s chief operating decision maker and for which discrete financial information is available. Solvay\u2019s chief operating decision maker is the Chief Executive Officer.External net sales by cluster The Oil & Gas GBU was created on July 1, 2021, regrouping activities that were previously included in Novecare and Technology Solutions. The following table presents restated figures for these GBUs since the beginning of 2021.In \u20ac million 2022 2021Materials 4,075 2,903Specialty Polymers 3,121 2,173Composite Materials 954 730Chemicals 4,496 3,357Soda Ash & Derivatives 2,221 1,509Peroxides 773 636Silica 631 467Coatis 870 745Solutions 4,846 3,838Novecare 1,905 1,547Special Chem 1,040 840Technology Solutions 740 560Aroma Performance 575 473Oil and Gas 586 418Corporate & Business Services 9 7CBS and NBD 9 7Total 13,426 10,105There are no individual customers that contribute 10% or more to the Group\u2019s revenue or any individual segment\u2019s revenue in either 2022 or 2021.Sales by marketSales by market are presented in the Business Review, see note B1. Net sales by country and region The sales disclosed below are allocated based on the customers\u2019 location.In \u20ac million 2022 % 2021 %Belgium 230 2% 170 2%Germany 940 7% 737 7%Italy 546 4% 431 4%France 479 4% 363 4%Netherlands 104 1% 88 1%Spain 191 1% 144 1%European Union - Other 706 5% 491 5%European Union 3,198 24% 2,423 24%Europe - Other 431 3% 352 3%United States 3,362 24% 2,496 25%Canada 170 2% 134 1%North America 3,532 26% 2,630 26%Brazil 1,156 9% 813 8%Mexico 288 2% 215 2%Latin America - Other 421 3% 280 3%Latin America 1,865 14% 1,308 13%Australia 121 1% 90 1%China 1,533 11% 1,203 12%Hong Kong 65 0% 42 0%India 272 2% 240 2%Indonesia 165 1% 115 1%Japan 460 3% 340 3%Russia 14 0% 66 1%Saudi Arabia 134 1% 128 1%South Korea 367 3% 301 3%Thailand 214 2% 175 2%Turkey 97 1% 74 1%Other 958 7% 617 6%Asia and rest of the world 4,400 33% 3,391 34%Total 13,426 100% 10,105 100%2022 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesIncome statement items\ue61f \ue61f \ue61f \ue61f \ue61fNet sales (including inter-segment sales) 4,078 4,552 4,857 9 13,496 - Inter-segment sales -3 -56 -10 0 -70Net sales 4,075 4,496 4,846 9 13,426Revenue from non-core activities 109 948 42 1,546 2,645Gross margin 1,561 1,085 1,303 80 4,029Depreciation and amortization 363 261 207 93 923Earnings from associates and joint ventures 9 153 7 2 171Underlying EBITDA(1) 1,290 1,188 944 -194 3,229EBIT 0 0 0 0 2,221Net financial charges \ue61f \ue61f \ue61f \ue61f -70Income taxes \ue61f \ue61f \ue61f \ue61f -217Profit for the year from discontinued operations \ue61f \ue61f \ue61f \ue61f 0Profit/(loss) for the year \ue61f \ue61f \ue61f \ue61f 1,9342021 - In \u20ac million Materials Chemicals Solutions Corporate Group & Business TotalServicesIncome statement items\ue61f \ue61f \ue61f \ue61f \ue61fNet sales (including inter-segment sales) 2,912 3,395 3,844 7 10,157 Inter-segment sales -9 -38 -6 0 -53Net sales 2,903 3,357 3,838 7 10,105Revenue from non-core activities 19 433 30 848 1,330Gross margin 1,102 838 986 0 2,926Depreciation and amortization 313 174 266 95 848Earnings from associates and joint ventures 8 141 7 2 158Underlying EBITDA(1) 879 1,009 701 -232 2,356EBIT 1,190Net financial charges \ue61f \ue61f \ue61f \ue61f -96Income taxes \ue61f \ue61f \ue61f \ue61f -110Profit for the year from discontinued operations \ue61f \ue61f \ue61f \ue61f 5Profit/(loss) for the year \ue61f \ue61f \ue61f \ue61f 989NOTE\ue61fF3 REVENUE FROM NON-CORE ACTIVITIESThis revenue primarily comprises commodity and utility third party transactions, non-core licensing transactions, and other revenue, considered to not correspond to Solvay\u2019s core business. The increase compared to 2021 is mainly related to higher gas and electricity prices.",
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"pp-value-34-6": {
"value": "NOTE F1 REVENUE AND SEGMENT INFORMATIONAccounting policyIFRS 15 establishes a five-step model to account for revenue arising from contracts with customers: \u00b7 Identify the contract, \u00b7 Identify the performance obligations, \u00b7 Determine the transaction price, \u00b7 Allocate the transaction price to the performance obligations in the contract, and \u00b7 Recognize revenue when or as the Group satisfies a performance obligation.Under IFRS 15, revenue is recognized at an amount that re\ufb02ects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Sale of goods: Contracts can be short term (including based only on a purchase order) or long term, some have minimum off-take requirements. As the Group is in the business of selling advanced materials and specialty chemicals, contracts with customers generally concern the sale of goods. As a result, revenue recognition generally occurs at a point in time when control of the chemicals is transferred to the customer, generally on delivery of the goods.Distinct elements: a good or service that is promised to a customer is distinct if both of the following criteria are met: (a) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e. The good or service is capable of being distinct); and (b) the Group\u2019s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e. The promise to transfer the good or service is distinct within the context of the contract).The revenue of the Group consists mainly of sales of chemicals, which qualify as separate performance obligations. Value-added services \u2013 mainly customer assistance services \u2013 corresponding to Solvay\u2019s know-how are rendered predominantly over the period that the corresponding goods are sold to the customer. Variable consideration: some contracts with customers provide trade discounts or volume rebates. Trade discounts and volume rebates give rise to variable consideration under IFRS 15, and are required to be estimated at contract inception and subsequently at each reporting date. IFRS 15 requires the estimated variable consideration to be constrained to prevent overstatement of revenue. Moment of recognition of revenue: revenue is recognized when (or as) the Group satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Substantially all revenue stems from performance obligations satisfied at a point in time, i.e. The sale of goods. Revenue recognition for those takes into account the following: \u00b7 The Group has a present right to payment for the asset; \u00b7 The customer has legal title to the asset; \u00b7 The Group has transferred physical possession of the asset; \u00b7 The customer has the significant risks and rewards of ownership of the asset (in this respect, incoterms are considered); and \u00b7 The customer has accepted the asset.Products sold to customers generally cannot be returned, other than for performance deficiencies. Customer acceptance clauses are in many cases a formality that would not affect the Group\u2019s determination of when the customer has obtained control of the goods. Revenue from services is recognized in the period those services have been rendered.The Group sells its chemicals to its customers, (a) directly, (b) through distributors, and (c) with the assistance of agents. When the Group delivers a product to distributors for sale to end customers, the Group evaluates whether that distributor has obtained control of the product at that point in time. No revenue is recognized upon delivery of a product to a customer or distributor if the delivered product is held on consignment. Indicators of consignment inventory include: \u00b7 The product is controlled by the Group until a specified event occurs, such as the sale of the product to a customer of the distributor or until a specified period expires; \u00b7 The Group is able to require the return of the product or transfer the product to a third party (such as another distributor); and \u00b7 The distributor does not have an unconditional obligation to pay for the product (although he might be required to pay a deposit). \u00b7 Agents facilitate sales and do not purchase and resell the goods to the end customer. Warranties: warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Substantially all warranties do not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications, and are hence accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Licensing: In case of performance obligations relation to licensing intellectual property (IP), the Group assesses if it grants a right to access the IP as it exists throughout the license period or a right to use the IP as it exists at the point in time at which the license is granted. If the performance obligation is to grant a right to access, then the related revenue is recognized over the license period; otherwise, it is recognized at a point in time, i.e. when the license period starts or when the customer starts using the IP. The Group assesses if the license provided can be considered as being distinct in the context of the contract. If not, the license will have to be bundled with other goods or services provided in the contract. Currently the Group grants a right to use IP, which means that revenue recognition occurs at a point in time.An Operating Segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity\u2019s chief operating decision maker and for which discrete financial information is available. Solvay\u2019s chief operating decision maker is the Chief Executive Officer.",
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},
"pp-value-34-7": {
"value": "NOTE F1 REVENUE AND SEGMENT INFORMATIONAccounting policyIFRS 15 establishes a five-step model to account for revenue arising from contracts with customers: \u00b7 Identify the contract, \u00b7 Identify the performance obligations, \u00b7 Determine the transaction price, \u00b7 Allocate the transaction price to the performance obligations in the contract, and \u00b7 Recognize revenue when or as the Group satisfies a performance obligation.Under IFRS 15, revenue is recognized at an amount that re\ufb02ects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Sale of goods: Contracts can be short term (including based only on a purchase order) or long term, some have minimum off-take requirements. As the Group is in the business of selling advanced materials and specialty chemicals, contracts with customers generally concern the sale of goods. As a result, revenue recognition generally occurs at a point in time when control of the chemicals is transferred to the customer, generally on delivery of the goods.Distinct elements: a good or service that is promised to a customer is distinct if both of the following criteria are met: (a) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e. The good or service is capable of being distinct); and (b) the Group\u2019s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e. The promise to transfer the good or service is distinct within the context of the contract).The revenue of the Group consists mainly of sales of chemicals, which qualify as separate performance obligations. Value-added services \u2013 mainly customer assistance services \u2013 corresponding to Solvay\u2019s know-how are rendered predominantly over the period that the corresponding goods are sold to the customer. Variable consideration: some contracts with customers provide trade discounts or volume rebates. Trade discounts and volume rebates give rise to variable consideration under IFRS 15, and are required to be estimated at contract inception and subsequently at each reporting date. IFRS 15 requires the estimated variable consideration to be constrained to prevent overstatement of revenue. Moment of recognition of revenue: revenue is recognized when (or as) the Group satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Substantially all revenue stems from performance obligations satisfied at a point in time, i.e. The sale of goods. Revenue recognition for those takes into account the following: \u00b7 The Group has a present right to payment for the asset; \u00b7 The customer has legal title to the asset; \u00b7 The Group has transferred physical possession of the asset; \u00b7 The customer has the significant risks and rewards of ownership of the asset (in this respect, incoterms are considered); and \u00b7 The customer has accepted the asset.Products sold to customers generally cannot be returned, other than for performance deficiencies. Customer acceptance clauses are in many cases a formality that would not affect the Group\u2019s determination of when the customer has obtained control of the goods. Revenue from services is recognized in the period those services have been rendered.The Group sells its chemicals to its customers, (a) directly, (b) through distributors, and (c) with the assistance of agents. When the Group delivers a product to distributors for sale to end customers, the Group evaluates whether that distributor has obtained control of the product at that point in time. No revenue is recognized upon delivery of a product to a customer or distributor if the delivered product is held on consignment. Indicators of consignment inventory include: \u00b7 The product is controlled by the Group until a specified event occurs, such as the sale of the product to a customer of the distributor or until a specified period expires; \u00b7 The Group is able to require the return of the product or transfer the product to a third party (such as another distributor); and \u00b7 The distributor does not have an unconditional obligation to pay for the product (although he might be required to pay a deposit). \u00b7 Agents facilitate sales and do not purchase and resell the goods to the end customer. Warranties: warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Substantially all warranties do not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications, and are hence accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Licensing: In case of performance obligations relation to licensing intellectual property (IP), the Group assesses if it grants a right to access the IP as it exists throughout the license period or a right to use the IP as it exists at the point in time at which the license is granted. If the performance obligation is to grant a right to access, then the related revenue is recognized over the license period; otherwise, it is recognized at a point in time, i.e. when the license period starts or when the customer starts using the IP. The Group assesses if the license provided can be considered as being distinct in the context of the contract. If not, the license will have to be bundled with other goods or services provided in the contract. Currently the Group grants a right to use IP, which means that revenue recognition occurs at a point in time.An Operating Segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity\u2019s chief operating decision maker and for which discrete financial information is available. Solvay\u2019s chief operating decision maker is the Chief Executive Officer.",
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"pp-value-45-2": {
"value": "NOTE\ue61fF2 CONSOLIDATED INCOME STATEMENT BY NATUREIn \u20ac million Notes 2022 2021Net sales (F1) 13,426 10,105Revenue from non-core activities (F3) 2,645 1,330Raw materials, utilities and consumables used \ue61d -8,578 -5,910Changes in inventories \ue61d 300 424Personnel expenses \ue61d -2,262 -2,002Wages and direct social benefits \ue61d -1,689 -1,469Employer's contribution for social insurance \ue61d -399 -286Pensions and insurance benefits \ue61d -121 -98Other personnel expenses \ue61d -54 -148Amortization, depreciation and impairment (F11) -923 -849Other variable logistics expenses \ue61d -1,057 -776Other fixed expenses \ue61d -1,161 -1,017Addition and reversal of provisions (excluding employee benefit provisions) (F31) -257 -323Significant income related to prior years (F4)\ue61d 0 97M&A costs and gains and losses on disposals (F5) -83 -47Earnings from associates and joint ventures (F23) 171 158EBIT \ue61f 2,221 1,190In 2022 the Italian government provided approximately \u20ac78 million in indirect tax credits to minimize the impact of escalating energy costs on the Group. The indirect tax credits are intended to compensate up to a maximum of 40% of energy-related costs if such costs increased by 30% or more when compared to prior years. The tax credits were accounted for in accordance with IAS 20 Government Grants and recognized as a reduction of energy costs in the consolidated income statement.\ue61f The majority of the credits were received in Q4, 2022.M&A costs and gains and losses on disposals for 2021 exclude a portion of PIS/COFINs (see note F4 Other operating gains and losses).",
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"pp-value-45-3": {
"value": "NOTE\ue61fF2 CONSOLIDATED INCOME STATEMENT BY NATUREIn \u20ac million Notes 2022 2021Net sales (F1) 13,426 10,105Revenue from non-core activities (F3) 2,645 1,330Raw materials, utilities and consumables used \ue61d -8,578 -5,910Changes in inventories \ue61d 300 424Personnel expenses \ue61d -2,262 -2,002Wages and direct social benefits \ue61d -1,689 -1,469Employer's contribution for social insurance \ue61d -399 -286Pensions and insurance benefits \ue61d -121 -98Other personnel expenses \ue61d -54 -148Amortization, depreciation and impairment (F11) -923 -849Other variable logistics expenses \ue61d -1,057 -776Other fixed expenses \ue61d -1,161 -1,017Addition and reversal of provisions (excluding employee benefit provisions) (F31) -257 -323Significant income related to prior years (F4)\ue61d 0 97M&A costs and gains and losses on disposals (F5) -83 -47Earnings from associates and joint ventures (F23) 171 158EBIT \ue61f 2,221 1,190In 2022 the Italian government provided approximately \u20ac78 million in indirect tax credits to minimize the impact of escalating energy costs on the Group. The indirect tax credits are intended to compensate up to a maximum of 40% of energy-related costs if such costs increased by 30% or more when compared to prior years. The tax credits were accounted for in accordance with IAS 20 Government Grants and recognized as a reduction of energy costs in the consolidated income statement.\ue61f The majority of the credits were received in Q4, 2022.M&A costs and gains and losses on disposals for 2021 exclude a portion of PIS/COFINs (see note F4 Other operating gains and losses).",
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"pp-value-45-4": {
"value": "NOTE\ue61fF2 CONSOLIDATED INCOME STATEMENT BY NATUREIn \u20ac million Notes 2022 2021Net sales (F1) 13,426 10,105Revenue from non-core activities (F3) 2,645 1,330Raw materials, utilities and consumables used \ue61d -8,578 -5,910Changes in inventories \ue61d 300 424Personnel expenses \ue61d -2,262 -2,002Wages and direct social benefits \ue61d -1,689 -1,469Employer's contribution for social insurance \ue61d -399 -286Pensions and insurance benefits \ue61d -121 -98Other personnel expenses \ue61d -54 -148Amortization, depreciation and impairment (F11) -923 -849Other variable logistics expenses \ue61d -1,057 -776Other fixed expenses \ue61d -1,161 -1,017Addition and reversal of provisions (excluding employee benefit provisions) (F31) -257 -323Significant income related to prior years (F4)\ue61d 0 97M&A costs and gains and losses on disposals (F5) -83 -47Earnings from associates and joint ventures (F23) 171 158EBIT \ue61f 2,221 1,190In 2022 the Italian government provided approximately \u20ac78 million in indirect tax credits to minimize the impact of escalating energy costs on the Group. The indirect tax credits are intended to compensate up to a maximum of 40% of energy-related costs if such costs increased by 30% or more when compared to prior years. The tax credits were accounted for in accordance with IAS 20 Government Grants and recognized as a reduction of energy costs in the consolidated income statement.\ue61f The majority of the credits were received in Q4, 2022.M&A costs and gains and losses on disposals for 2021 exclude a portion of PIS/COFINs (see note F4 Other operating gains and losses).",
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"pp-value-45-5": {
"value": "NOTE\ue61fF2 CONSOLIDATED INCOME STATEMENT BY NATUREIn \u20ac million Notes 2022 2021Net sales (F1) 13,426 10,105Revenue from non-core activities (F3) 2,645 1,330Raw materials, utilities and consumables used \ue61d -8,578 -5,910Changes in inventories \ue61d 300 424Personnel expenses \ue61d -2,262 -2,002Wages and direct social benefits \ue61d -1,689 -1,469Employer's contribution for social insurance \ue61d -399 -286Pensions and insurance benefits \ue61d -121 -98Other personnel expenses \ue61d -54 -148Amortization, depreciation and impairment (F11) -923 -849Other variable logistics expenses \ue61d -1,057 -776Other fixed expenses \ue61d -1,161 -1,017Addition and reversal of provisions (excluding employee benefit provisions) (F31) -257 -323Significant income related to prior years (F4)\ue61d 0 97M&A costs and gains and losses on disposals (F5) -83 -47Earnings from associates and joint ventures (F23) 171 158EBIT \ue61f 2,221 1,190In 2022 the Italian government provided approximately \u20ac78 million in indirect tax credits to minimize the impact of escalating energy costs on the Group. The indirect tax credits are intended to compensate up to a maximum of 40% of energy-related costs if such costs increased by 30% or more when compared to prior years. The tax credits were accounted for in accordance with IAS 20 Government Grants and recognized as a reduction of energy costs in the consolidated income statement.\ue61f The majority of the credits were received in Q4, 2022.M&A costs and gains and losses on disposals for 2021 exclude a portion of PIS/COFINs (see note F4 Other operating gains and losses).",
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"pp-value-45-6": {
"value": "NOTE\ue61fF2 CONSOLIDATED INCOME STATEMENT BY NATUREIn \u20ac million Notes 2022 2021Net sales (F1) 13,426 10,105Revenue from non-core activities (F3) 2,645 1,330Raw materials, utilities and consumables used \ue61d -8,578 -5,910Changes in inventories \ue61d 300 424Personnel expenses \ue61d -2,262 -2,002Wages and direct social benefits \ue61d -1,689 -1,469Employer's contribution for social insurance \ue61d -399 -286Pensions and insurance benefits \ue61d -121 -98Other personnel expenses \ue61d -54 -148Amortization, depreciation and impairment (F11) -923 -849Other variable logistics expenses \ue61d -1,057 -776Other fixed expenses \ue61d -1,161 -1,017Addition and reversal of provisions (excluding employee benefit provisions) (F31) -257 -323Significant income related to prior years (F4)\ue61d 0 97M&A costs and gains and losses on disposals (F5) -83 -47Earnings from associates and joint ventures (F23) 171 158EBIT \ue61f 2,221 1,190In 2022 the Italian government provided approximately \u20ac78 million in indirect tax credits to minimize the impact of escalating energy costs on the Group. The indirect tax credits are intended to compensate up to a maximum of 40% of energy-related costs if such costs increased by 30% or more when compared to prior years. The tax credits were accounted for in accordance with IAS 20 Government Grants and recognized as a reduction of energy costs in the consolidated income statement.\ue61f The majority of the credits were received in Q4, 2022.M&A costs and gains and losses on disposals for 2021 exclude a portion of PIS/COFINs (see note F4 Other operating gains and losses).NOTE\ue61fF11 DEPRECIATION, AMORTIZATION AND\ue61eIMPAIRMENTSIn 2022 total depreciation, amortization and impairment losses (reversal) amount to \u20ac923 million (\u20ac849 million in 2021), of which: Straight-line depreciation and amortization of \u20ac\ue61f948\ue61fmillion (\u20ac906\ue61fmillion in 2021) for continuing operations recorded in: \u00b7 Cost of goods sold \u20ac\ue61f604\ue61fmillion (\u20ac564\ue61fmillion in 2021), \u00b7 Administrative costs \u20ac\ue61f85 million (\u20ac82 million in 2021), \u00b7 Research and development costs \u20ac\ue61f96\ue61fmillion (\u20ac100\ue61fmillion in 2021), \u00b7 Other \u20ac\ue61f163\ue61fmillion (\u20ac160\ue61fmillion in 2021), including \u20ac\ue61f146\ue61fmillion (\u20ac147\ue61fmillion in 2021) for PPA amortization (see note\ue61fF4 Other operating gains and losses);In 2022, the impairments include the impairment reversal of Special Chem assets for \u20ac37 million (see note F24 Impairment) and impairment losses of other non-performing assets for \u20ac(9) million.NOTE\ue61fF19 INTANGIBLE ASSETSAccounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.The asset is tested for impairment if (a) there is a trigger for impairment, and (b) annually for projects under development (see note F24 Impairment).Intangible assets are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an intangible asset is recognized in profit or loss at the moment of derecognition.In \u20ac million Development Patents and Customer Other Totalcoststrademarksrelationshipsintangible assetsGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 464 1,620 1,856 661 4,601Additions 48 4 \ue61f 23 75Disposals and closures -9 -21 \ue61f -4 -33Increase through business combinations 0 0 \ue61f 7 7Currency translation differences 12 79 117 49 257Other 1 2 \ue61f 4 7December 31, 2021 517 1,686 1,973 739 4,914Additions 67 3 \ue61f 24 94Disposals and closures -22 -16 \ue61f -5 -43Increase through business combinations 0 0 \ue61f 0 0Currency translation differences 7 60 93 22 183Other 7 11 \ue61f -15 3December 31, 2022 577 1,744 2,066 765 5,152Accumulated amortization \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -173 -930 -824 -531 -2,459Amortization -65 -104 -82 -13 -264Impairment 0 5 0 -5 0Disposals and closures 8 21 \ue61f 4 32Currency translation differences -3 -36 -36 -42 -116Other 0 -3 \ue61f -2 -5December 31, 2021 -233 -1,047 -941 -590 -2,812Amortization -63 -97 -90 -14 -265Impairment 0 0 0 0 0Reversal of impairment 0 0 \ue61f 8 8Disposals and closures 22 16 \ue61f 5 43Currency translation differences -2 -26 -29 -21 -78Other 0 0 \ue61f 0 0December 31, 2022 -277 -1,155 -1,061 -611 -3,104Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 291 690 1,032 129 2,140December 31, 2021 283 638 1,031 149 2,102December 31, 2022 300 589 1,005 154 2,048Intangibles mainly relate to the intangibles acquired through the acquisitions of Rhodia and Cytec. The average remaining useful life of Cytec\u2019s assets is 10 years. NOTE\ue61fF21 PROPERTY, PLANT AND EQUIPMENTAccounting policyGeneralProperty, plant and equipment are tangible items that: \u00b7 are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and \u00b7 are expected to be used during more than one period.The items of property, plant and equipment owned by the Group are recognized as property, plant and equipment when the following conditions are satisfied: \u00b7 it is probable that the future economic benefits associated with the asset will \ufb02ow to the Group; \u00b7 the cost of the asset can be measured reliably.Items of property, plant and equipment are initially measured at cost. The cost of an item of property, plant and equipment comprises its purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. If applicable, the cost comprises borrowing costs during the construction period.After initial recognition, items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. The components of an item of property, plant and equipment with different useful lives are depreciated separately. Land is not depreciated. The estimated useful lives, residual values and depreciation methods are reviewed at each year end, also taking into account the potential impact of climate change including the execution of the Solvay One Plant Strategy (see Note Climate Change in the IFRS general accounting policies). Any changes in estimates are accounted for prospectively.Buildings 30-40 yearsIT equipment 3-5 yearsMachinery and equipment 10-20 yearsTransportation equipment 5-20 yearsDepreciation expense is included in the consolidated income statement within cost of goods sold, administrative costs, and R&D costs.Dismantling and restoration costsDismantling and restoration costs are included in the cost of an item of property, plant and equipment if the Group has a legal or constructive obligation to dismantle or restore. They are depreciated over the useful life of the items to which they pertain.Generally, Solvay\u2019s obligation to dismantle and/or restore its operating sites is only likely to arise upon the discontinuation of a site\u2019s activities. A provision for dismantling of discontinued sites or installations is recognized when there is a legal obligation (due to a request or injunction from the relevant authorities), or when there is no technical alternative than to dismantle, so to ensure the safety compliance of the discontinued sites or installations.In \u20ac million Land and Fixtures and Other tan-Property, plant and equipment Totalbuildingsequipmentgible assetsunder constructionGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 2,819 9,699 414 405 13,337Additions 18 88 13 452 571Disposals and closures -16 -101 -29 0 -146Increase through business combinations 4 2 0 0 7Currency translation differences 101 348 13 24 486Other 15 151 7 -193 -20December 31, 2021 2,941 10,187 418 688 14,235Additions 28 103 8 715 854Disposals and closures -28 -132 -19 0 -179Increase through business combinations 0 0 0 0 0Currency translation differences 44 206 8 15 273Other 35 284 11 -385 -55December 31, 2022 3,021 10,648 425 1,033 15,128Accumulated depreciation \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -1,478 -6,813 -329 \ue61f -8,620Depreciation -73 -436 -27 \ue61f -535Impairment -5 -4 0 \ue61f -9Reversal of impairment 1 0 0 \ue61f 1Disposals and closures 12 101 29 \ue61f 143Currency translation differences -43 -226 -10 \ue61f -278Other 5 2 0 \ue61f 7December 31, 2021 -1,580 -7,375 -337 \ue61f -9,291Depreciation -80 -464 -27 \ue61f -570Impairment 0 -6 0 \ue61f -6Reversal of impairment 8 21 0 \ue61f 29Disposals and closures 26 130 19 \ue61f 175Currency translation differences -25 -151 -7 \ue61f -183Other 3 26 0 \ue61f 30December 31, 2022 -1,648 -7,818 -351 \ue61f -9,816Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 1,342 2,886 85 405 4,717December 31, 2021 1,361 2,813 81 688 4,943December 31, 2022 1,373 2,830 75 1,033 5,311The line \u201cOther\u201d mainly includes changes following portfolio transactions and reclassification of property, plant and equipment under construction to the appropriate categories when they are ready for intended use. Cash \ufb02ows related to major investments are disclosed in note F16 Cash \ufb02ows from investing activities \u2013 acquisition/disposal of\ue61fassets\ue61fand\ue61finvestments. NOTE F22 RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONSRight-of-use assetThe right-of-use asset is initially measured at cost, which comprises: \u00b7 the amount of the initial measurement of the lease liability; \u00b7 any lease payments made at or before the commencement date, less any lease incentive received; and \u00b7 any initial direct costs incurred by the Group.After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any accumulated impairment losses. Right-of-use assets are depreciated using the straight-line depreciation method, from the commencement date to (a) the end of the useful life of the underlying asset, in case the lease transfers ownership of the underlying asset to the Group by the end of the lease term, or the lease contains a purchase option that the Group is reasonably certain to exercise, or (b) the earlier of the end of the useful life and the end of the lease term, in all other cases. Lease liabilityThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the respective Group entity\u2019s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise the following: \u00b7 fixed payments, less any lease incentives receivable; \u00b7 variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; \u00b7 amounts expected to be payable by the Group under residual value guarantees; \u00b7 the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and \u00b7 payments of penalties for early terminating the lease, if the Group is reasonably certain to exercise an option to early terminate the lease.Service components (e.g. Utilities, maintenance, insurance, \u2026) are excluded from the measurement of the lease liability. After the commencement date, the lease liability is measured by: \u00b7 increasing the carrying amount to re\ufb02ect interest on the lease liability; \u00b7 reducing the carrying amount to re\ufb02ect the lease payments made; and \u00b7 remeasuring the carrying amount to re\ufb02ect any reassessment or lease modifications, or to re\ufb02ect the impact from a revised index or rate.Leasing of PalladiumThe Group uses palladium, a precious metal, for certain of its operations. Next to purchasing this palladium, the Group also enters into various \u201cleasing\u201d agreements with financial institutions that give the Group the right to use palladium for a certain period and then return it at the end of the \u201clease\u201d. Based on our analysis of these agreements, these contracts are not in the scope of IFRS 16 Leases or IFRS 9 Financial Instruments. Due to the lack of clear IFRS guidance, the Group applied judgment to determine whether these rights and obligations shall be accounted for on a gross or a net basis. Considering that the Group bears no price risk during the \u2018lease\u2019 term and is not in full control of the asset (in accordance with the IFRS Conceptual Framework), the Group believes a net presentation gives a better view on the economic substance of the transaction. As a result, only accruals are recorded for the production losses and regeneration costs and the \u201clease\u201d fee is recognized within cost of sales. At the end of 2022, the total (gross) value of palladium leased still to be returned amounted to \u20ac59 million (end of 2021: \u20ac50 million) valued at the year-end closing rate.In \u20ac million Land Buildings Transpor-Industrial Other tangible Totaltation equipmentassetsequipmentGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 18 227 207 159 9 620Additions 0 29 23 82 1 134Disposals and closures 0 -1 -3 0 0 -4Currency translation differences 0 9 11 7 0 27Other 0 3 10 3 1 17Transfer to assets held for sale 0 0 0 0 0 1December 31, 2021 19 266 248 251 11 795Additions 0 8 46 27 5 86Disposals and closures 0 -38 -28 -11 -3 -79Currency translation differences 0 7 8 5 0 21Other 0 7 15 5 1 28Transfer to assets held for sale 0 0 0 0 0 0December 31, 2022 19 250 289 279 16 852Accumulated depreciation \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -2 -77 -83 -47 -6 -215Depreciation -1 -36 -42 -26 -3 -107Impairment 0 1 3 0 0 4Currency translation differences 0 -4 -5 -3 0 -11December 31, 2021 -4 -115 -127 -75 -8 -329Depreciation -1 -33 -46 -34 -3 -117Impairment 0 -3 0 0 0 -3Disposals and closures 0 38 28 11 3 79Currency translation differences 0 -3 -4 -2 0 -9December 31, 2022 -5 -115 -148 -100 -9 -378Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 16 150 124 112 4 405December 31, 2021 15 151 121 176 3 466December 31, 2022 14 134 141 178 6 474The Group primarily leases buildings that include office buildings, and warehouses. Those leases are generally long-term leases and may include extension options. Next, the Group leases transportation equipment that mainly consists of railcars and containers to transport the Group\u2019s products. Industrial equipment mainly relates to utility assets. In 2022, additions include \u20ac27 million for industrial equipment, \u20ac23 million for railcars and \u20ac17 million for containers.Lease contracts generally are negotiated by the local teams, and contain a wide range of different terms and conditions. Many lease contracts contain extension options and/or early termination options to provide the Group with operational \ufb02exibility. Such options are taken into account when determining the lease term and the lease liability when it is reasonably certain that they will be exercised. If the Group exercised its extension options not currently included in the lease liability, the present value of additional payments would amount to \u20ac\ue61f100\ue61fmillion at December 31, 2022 (\u20ac143 million at December 31, 2021). Lease contracts signed not yet commenced amount to \u20ac137 million at December 31, 2022 (\u20ac135 million for 2021) and mainly relate to a second waste wood boiler, steam turbine and auxiliaries in Germany, industrial equipment in France and rail cars in the United States. Total cash out\ufb02ows for leases amount to \u20ac134 million for 2022, of which \u20ac113 million related to payment of lease liabilities and \u20ac21 million of interest expenses. Information on the corresponding lease liabilities (\u20ac519 million) can be found in the note F33 Net indebtedness. Information on the finance expense related to lease liabilities can be found in note F6 Net financial charges. ",
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},
"pp-value-47-2": {
"value": "NOTE\ue61fF4 OTHER OPERATING GAINS AND LOSSESIn \u20ac million 2022 2021Start-up and preliminary study costs -24 -11Capital gains/losses on sales of property, plant and equipment and intangible assets 5 12Net foreign exchange gains and losses 0 1Amortization of intangible assets resulting from PPA -146 -147PIS/COFINs credits recognition \ue61f 61Gain on CO2 hedge management 322 \ue61fOther 13 5Other operating gains and losses 171 -80In 2022, the gain of \u20ac322 million relates to the change in accounting treatment of the entire portfolio of CO emission rights following the reconsideration 2of the IFRS 9 own use exemption (see note F32.B).A Supreme Court ruling in Brazil issued in August 2021 conferred the right to recover Federal indirect tax on sales, so-called \u201cPIS/COFINs\u201d, to a number of companies, including Solvay. As a result of that ruling, a total gain of \u20ac97 million related to operations from 2003 to the present date was quantified and assessed as recoverable before tax of \u20ac(26) million. Of that, \u20ac36 million were recognized under \u201cResults from portfolio management and major restructuring\u201d mainly as the relevant period pre-dated the Groups\u2019 acquisition of Rhodia in August 2011 (see note F5 Results from Portfolio Management and Major Restructurings, Legacy Remediation and Major Litigations \u2013 included in line \u201cM&A costs and gains and losses on disposals\u201d).\ue61f The remaining \u20ac61 million were recorded as \"Other operating gains & losses\" as the period related to operations subsequent to August 2011 and still in Solvay\u2019s perimeter. This amount has been substantially recovered mainly through the offset of income tax payments in 2022.NOTE\ue61fF5 RESULTS FROM PORTFOLIO MANAGEMENT AND MAJOR RESTRUCTURINGS, LEGACY REMEDIATION AND MAJOR LITIGATIONSAccounting policyResults from portfolio management and major restructurings include: \u00b7 gains and losses on the sale of subsidiaries, joint operations, joint ventures, and associates that do not qualify as discontinued operations; \u00b7 acquisition costs of new businesses; \u00b7 one-off operating costs related to internal management of portfolio (carve-out of major lines of businesses); \u00b7 gains and losses on the sale of real estate not directly linked to an operating activity; \u00b7 restructuring charges driven by portfolio management and by major reorganizations of business activities, including impairment losses resulting from the shutdown of an activity or a plant; \u00b7 impairment losses (reversals) resulting from testing of CGUs. Results from legacy remediation and major litigations include: \u00b7 the remediation costs not generated by on-going production facilities (shut-down of sites, discontinued productions, previous years\u2019 pollution); and \u00b7 the impact of significant litigations.RESULTS FROM PORTFOLIO MANAGEMENT AND MAJOR RESTRUCTURINGIn \u20ac million 2022 2021Restructuring costs and impairment -23 -122Impairment 16 58Restructuring costs -39 -181M&A costs and gains and losses on disposals -83 -11Results from portfolio management and major restructuring -105 -133In 2022, impairment includes the reversal of impairment losses in the Special Chem CGU for Fluor Gases in Europe for \u20ac37 million, impairment losses of other non-performing assets for \u20ac(9) million and impairment losses on other investments for \u20ac(11) million. The 2022 increase in M&A costs is mainly explained by the costs incurred for the ongoing separation plan of the Solvay Group. For the movement in restructuring and remediation costs please refer to the note F31.B. Provisions other than for employee benefits.In 2021, restructuring costs relate mainly to the new simplification program of the support functions for \u20ac157 million. The impairments include the impairment reversal of the joint venture Rusvinyl for \u20ac66 million and impairment losses of other non-performing assets for \u20ac(8) million. In 2021, the M&A costs and gains and losses on disposals include a \u20ac36 million gain related to PIS/COFINs (see note F4 Other operating gains and losses).RESULTS FROM LEGACY REMEDIATION AND MAJOR LITIGATIONSIn \u20ac million 2022 2021Major litigations -100 -26Remediation costs and other costs related to non-ongoing activities -183 -97Results from legacy remediation and major litigations -283 -123For the movement in litigation costs please refer to the note F31.B. Provisions other than for employee benefits.In 2022 remediation costs increased versus last year mainly due to a \u20ac93 million provision recorded in Q3, 2022 related to per- and poly\ufb02uoroalkyl substances (PFAS). See note F31.B Provisions other than for employee benefits. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-47-3": {
"value": "NOTE\ue61fF4 OTHER OPERATING GAINS AND LOSSESIn \u20ac million 2022 2021Start-up and preliminary study costs -24 -11Capital gains/losses on sales of property, plant and equipment and intangible assets 5 12Net foreign exchange gains and losses 0 1Amortization of intangible assets resulting from PPA -146 -147PIS/COFINs credits recognition \ue61f 61Gain on CO2 hedge management 322 \ue61fOther 13 5Other operating gains and losses 171 -80In 2022, the gain of \u20ac322 million relates to the change in accounting treatment of the entire portfolio of CO emission rights following the reconsideration 2of the IFRS 9 own use exemption (see note F32.B).A Supreme Court ruling in Brazil issued in August 2021 conferred the right to recover Federal indirect tax on sales, so-called \u201cPIS/COFINs\u201d, to a number of companies, including Solvay. As a result of that ruling, a total gain of \u20ac97 million related to operations from 2003 to the present date was quantified and assessed as recoverable before tax of \u20ac(26) million. Of that, \u20ac36 million were recognized under \u201cResults from portfolio management and major restructuring\u201d mainly as the relevant period pre-dated the Groups\u2019 acquisition of Rhodia in August 2011 (see note F5 Results from Portfolio Management and Major Restructurings, Legacy Remediation and Major Litigations \u2013 included in line \u201cM&A costs and gains and losses on disposals\u201d).\ue61f The remaining \u20ac61 million were recorded as \"Other operating gains & losses\" as the period related to operations subsequent to August 2011 and still in Solvay\u2019s perimeter. This amount has been substantially recovered mainly through the offset of income tax payments in 2022.RESULTS FROM PORTFOLIO MANAGEMENT AND MAJOR RESTRUCTURINGIn \u20ac million 2022 2021Restructuring costs and impairment -23 -122Impairment 16 58Restructuring costs -39 -181M&A costs and gains and losses on disposals -83 -11Results from portfolio management and major restructuring -105 -133In 2022, impairment includes the reversal of impairment losses in the Special Chem CGU for Fluor Gases in Europe for \u20ac37 million, impairment losses of other non-performing assets for \u20ac(9) million and impairment losses on other investments for \u20ac(11) million. The 2022 increase in M&A costs is mainly explained by the costs incurred for the ongoing separation plan of the Solvay Group. For the movement in restructuring and remediation costs please refer to the note F31.B. Provisions other than for employee benefits.In 2021, restructuring costs relate mainly to the new simplification program of the support functions for \u20ac157 million. The impairments include the impairment reversal of the joint venture Rusvinyl for \u20ac66 million and impairment losses of other non-performing assets for \u20ac(8) million. In 2021, the M&A costs and gains and losses on disposals include a \u20ac36 million gain related to PIS/COFINs (see note F4 Other operating gains and losses).RESULTS FROM LEGACY REMEDIATION AND MAJOR LITIGATIONSIn \u20ac million 2022 2021Major litigations -100 -26Remediation costs and other costs related to non-ongoing activities -183 -97Results from legacy remediation and major litigations -283 -123For the movement in litigation costs please refer to the note F31.B. Provisions other than for employee benefits.In 2022 remediation costs increased versus last year mainly due to a \u20ac93 million provision recorded in Q3, 2022 related to per- and poly\ufb02uoroalkyl substances (PFAS). See note F31.B Provisions other than for employee benefits. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-47-4": {
"value": "NOTE\ue61fF4 OTHER OPERATING GAINS AND LOSSESIn \u20ac million 2022 2021Start-up and preliminary study costs -24 -11Capital gains/losses on sales of property, plant and equipment and intangible assets 5 12Net foreign exchange gains and losses 0 1Amortization of intangible assets resulting from PPA -146 -147PIS/COFINs credits recognition \ue61f 61Gain on CO2 hedge management 322 \ue61fOther 13 5Other operating gains and losses 171 -80In 2022, the gain of \u20ac322 million relates to the change in accounting treatment of the entire portfolio of CO emission rights following the reconsideration 2of the IFRS 9 own use exemption (see note F32.B).A Supreme Court ruling in Brazil issued in August 2021 conferred the right to recover Federal indirect tax on sales, so-called \u201cPIS/COFINs\u201d, to a number of companies, including Solvay. As a result of that ruling, a total gain of \u20ac97 million related to operations from 2003 to the present date was quantified and assessed as recoverable before tax of \u20ac(26) million. Of that, \u20ac36 million were recognized under \u201cResults from portfolio management and major restructuring\u201d mainly as the relevant period pre-dated the Groups\u2019 acquisition of Rhodia in August 2011 (see note F5 Results from Portfolio Management and Major Restructurings, Legacy Remediation and Major Litigations \u2013 included in line \u201cM&A costs and gains and losses on disposals\u201d).\ue61f The remaining \u20ac61 million were recorded as \"Other operating gains & losses\" as the period related to operations subsequent to August 2011 and still in Solvay\u2019s perimeter. This amount has been substantially recovered mainly through the offset of income tax payments in 2022.RESULTS FROM PORTFOLIO MANAGEMENT AND MAJOR RESTRUCTURINGIn \u20ac million 2022 2021Restructuring costs and impairment -23 -122Impairment 16 58Restructuring costs -39 -181M&A costs and gains and losses on disposals -83 -11Results from portfolio management and major restructuring -105 -133In 2022, impairment includes the reversal of impairment losses in the Special Chem CGU for Fluor Gases in Europe for \u20ac37 million, impairment losses of other non-performing assets for \u20ac(9) million and impairment losses on other investments for \u20ac(11) million. The 2022 increase in M&A costs is mainly explained by the costs incurred for the ongoing separation plan of the Solvay Group. For the movement in restructuring and remediation costs please refer to the note F31.B. Provisions other than for employee benefits.In 2021, restructuring costs relate mainly to the new simplification program of the support functions for \u20ac157 million. The impairments include the impairment reversal of the joint venture Rusvinyl for \u20ac66 million and impairment losses of other non-performing assets for \u20ac(8) million. In 2021, the M&A costs and gains and losses on disposals include a \u20ac36 million gain related to PIS/COFINs (see note F4 Other operating gains and losses).RESULTS FROM LEGACY REMEDIATION AND MAJOR LITIGATIONSIn \u20ac million 2022 2021Major litigations -100 -26Remediation costs and other costs related to non-ongoing activities -183 -97Results from legacy remediation and major litigations -283 -123For the movement in litigation costs please refer to the note F31.B. Provisions other than for employee benefits.In 2022 remediation costs increased versus last year mainly due to a \u20ac93 million provision recorded in Q3, 2022 related to per- and poly\ufb02uoroalkyl substances (PFAS). See note F31.B Provisions other than for employee benefits. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-48-4": {
"value": "NOTE\ue61fF5 RESULTS FROM PORTFOLIO MANAGEMENT AND MAJOR RESTRUCTURINGS, LEGACY REMEDIATION AND MAJOR LITIGATIONSAccounting policyResults from portfolio management and major restructurings include: \u00b7 gains and losses on the sale of subsidiaries, joint operations, joint ventures, and associates that do not qualify as discontinued operations; \u00b7 acquisition costs of new businesses; \u00b7 one-off operating costs related to internal management of portfolio (carve-out of major lines of businesses); \u00b7 gains and losses on the sale of real estate not directly linked to an operating activity; \u00b7 restructuring charges driven by portfolio management and by major reorganizations of business activities, including impairment losses resulting from the shutdown of an activity or a plant; \u00b7 impairment losses (reversals) resulting from testing of CGUs. Results from legacy remediation and major litigations include: \u00b7 the remediation costs not generated by on-going production facilities (shut-down of sites, discontinued productions, previous years\u2019 pollution); and \u00b7 the impact of significant litigations.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForExceptionalItemsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-51-2": {
"value": "NOTE\ue61fF6 NET FINANCIAL CHARGESAccounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.In \u20ac million 2022 2021Cost of borrowings -96 -89Interest expense on lease liabilities -21 -19Interest on loans and short term deposits 17 9Other gains and losses on net indebtedness 3 -4Net cost of borrowings -98 -103Cost of discounting provisions -19 -47Impact of change of discount rate on provisions 59 48Result from equity instruments measured at fair value -13 6Net financial charges -70 -96Details are included in note\ue61fF33 Net indebtedness.The net cost of borrowings variance is mainly explained by:Higher cost of borrowings:\ue61f \u00b7 \u20ac(11) million related to a fee to implement\ue61fcommitted fully undrawn credit facilities of \u20ac2.9 billion as a back-up facility to ensure potential liquidity needs in the context of the separation plan.\ue61f \u00b7 \u20ac(4) million due to the foreign exchange conversion effect of the cost of borrowings in USD transaction currency.\ue61f \u00b7 \u20ac8 million savings related to the continuing efforts to repay debt, including the early repayment of \u20ac\ue61f377.5 million on the \u20ac\ue61f750 million senior bond in September 2022.\ue61f\ue61f\ue61fHigher interest income on loans and deposits (higher volumes and an increase in interest rates). Other gains and losses on net indebtedness from \u20ac(4) million for 2021 to \u20ac3 million for 2022, largely attributable to currency swaps (interest element). In 2021, the loss of \u20ac(4) million was mainly linked to \u20ac\ue61f(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The cost of discounting provisions relates to post-employment benefits (\u20ac(2) million) and to environmental provisions (\u20ac(17) million) and its decrease is largely attributable to the evolution of the applicable discount rates (see also note F31 Provisions). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-51-3": {
"value": "NOTE\ue61fF6 NET FINANCIAL CHARGESAccounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.In \u20ac million 2022 2021Cost of borrowings -96 -89Interest expense on lease liabilities -21 -19Interest on loans and short term deposits 17 9Other gains and losses on net indebtedness 3 -4Net cost of borrowings -98 -103Cost of discounting provisions -19 -47Impact of change of discount rate on provisions 59 48Result from equity instruments measured at fair value -13 6Net financial charges -70 -96Details are included in note\ue61fF33 Net indebtedness.The net cost of borrowings variance is mainly explained by:Higher cost of borrowings:\ue61f \u00b7 \u20ac(11) million related to a fee to implement\ue61fcommitted fully undrawn credit facilities of \u20ac2.9 billion as a back-up facility to ensure potential liquidity needs in the context of the separation plan.\ue61f \u00b7 \u20ac(4) million due to the foreign exchange conversion effect of the cost of borrowings in USD transaction currency.\ue61f \u00b7 \u20ac8 million savings related to the continuing efforts to repay debt, including the early repayment of \u20ac\ue61f377.5 million on the \u20ac\ue61f750 million senior bond in September 2022.\ue61f\ue61f\ue61fHigher interest income on loans and deposits (higher volumes and an increase in interest rates). Other gains and losses on net indebtedness from \u20ac(4) million for 2021 to \u20ac3 million for 2022, largely attributable to currency swaps (interest element). In 2021, the loss of \u20ac(4) million was mainly linked to \u20ac\ue61f(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The cost of discounting provisions relates to post-employment benefits (\u20ac(2) million) and to environmental provisions (\u20ac(17) million) and its decrease is largely attributable to the evolution of the applicable discount rates (see also note F31 Provisions). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-51-4": {
"value": "NOTE\ue61fF6 NET FINANCIAL CHARGESAccounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.In \u20ac million 2022 2021Cost of borrowings -96 -89Interest expense on lease liabilities -21 -19Interest on loans and short term deposits 17 9Other gains and losses on net indebtedness 3 -4Net cost of borrowings -98 -103Cost of discounting provisions -19 -47Impact of change of discount rate on provisions 59 48Result from equity instruments measured at fair value -13 6Net financial charges -70 -96Details are included in note\ue61fF33 Net indebtedness.The net cost of borrowings variance is mainly explained by:Higher cost of borrowings:\ue61f \u00b7 \u20ac(11) million related to a fee to implement\ue61fcommitted fully undrawn credit facilities of \u20ac2.9 billion as a back-up facility to ensure potential liquidity needs in the context of the separation plan.\ue61f \u00b7 \u20ac(4) million due to the foreign exchange conversion effect of the cost of borrowings in USD transaction currency.\ue61f \u00b7 \u20ac8 million savings related to the continuing efforts to repay debt, including the early repayment of \u20ac\ue61f377.5 million on the \u20ac\ue61f750 million senior bond in September 2022.\ue61f\ue61f\ue61fHigher interest income on loans and deposits (higher volumes and an increase in interest rates). Other gains and losses on net indebtedness from \u20ac(4) million for 2021 to \u20ac3 million for 2022, largely attributable to currency swaps (interest element). In 2021, the loss of \u20ac(4) million was mainly linked to \u20ac\ue61f(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The cost of discounting provisions relates to post-employment benefits (\u20ac(2) million) and to environmental provisions (\u20ac(17) million) and its decrease is largely attributable to the evolution of the applicable discount rates (see also note F31 Provisions). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-51-5": {
"value": "NOTE\ue61fF6 NET FINANCIAL CHARGESAccounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.In \u20ac million 2022 2021Cost of borrowings -96 -89Interest expense on lease liabilities -21 -19Interest on loans and short term deposits 17 9Other gains and losses on net indebtedness 3 -4Net cost of borrowings -98 -103Cost of discounting provisions -19 -47Impact of change of discount rate on provisions 59 48Result from equity instruments measured at fair value -13 6Net financial charges -70 -96Details are included in note\ue61fF33 Net indebtedness.The net cost of borrowings variance is mainly explained by:Higher cost of borrowings:\ue61f \u00b7 \u20ac(11) million related to a fee to implement\ue61fcommitted fully undrawn credit facilities of \u20ac2.9 billion as a back-up facility to ensure potential liquidity needs in the context of the separation plan.\ue61f \u00b7 \u20ac(4) million due to the foreign exchange conversion effect of the cost of borrowings in USD transaction currency.\ue61f \u00b7 \u20ac8 million savings related to the continuing efforts to repay debt, including the early repayment of \u20ac\ue61f377.5 million on the \u20ac\ue61f750 million senior bond in September 2022.\ue61f\ue61f\ue61fHigher interest income on loans and deposits (higher volumes and an increase in interest rates). Other gains and losses on net indebtedness from \u20ac(4) million for 2021 to \u20ac3 million for 2022, largely attributable to currency swaps (interest element). In 2021, the loss of \u20ac(4) million was mainly linked to \u20ac\ue61f(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The cost of discounting provisions relates to post-employment benefits (\u20ac(2) million) and to environmental provisions (\u20ac(17) million) and its decrease is largely attributable to the evolution of the applicable discount rates (see also note F31 Provisions). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-51-6": {
"value": "NOTE\ue61fF6 NET FINANCIAL CHARGESAccounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.In \u20ac million 2022 2021Cost of borrowings -96 -89Interest expense on lease liabilities -21 -19Interest on loans and short term deposits 17 9Other gains and losses on net indebtedness 3 -4Net cost of borrowings -98 -103Cost of discounting provisions -19 -47Impact of change of discount rate on provisions 59 48Result from equity instruments measured at fair value -13 6Net financial charges -70 -96Details are included in note\ue61fF33 Net indebtedness.The net cost of borrowings variance is mainly explained by:Higher cost of borrowings:\ue61f \u00b7 \u20ac(11) million related to a fee to implement\ue61fcommitted fully undrawn credit facilities of \u20ac2.9 billion as a back-up facility to ensure potential liquidity needs in the context of the separation plan.\ue61f \u00b7 \u20ac(4) million due to the foreign exchange conversion effect of the cost of borrowings in USD transaction currency.\ue61f \u00b7 \u20ac8 million savings related to the continuing efforts to repay debt, including the early repayment of \u20ac\ue61f377.5 million on the \u20ac\ue61f750 million senior bond in September 2022.\ue61f\ue61f\ue61fHigher interest income on loans and deposits (higher volumes and an increase in interest rates). Other gains and losses on net indebtedness from \u20ac(4) million for 2021 to \u20ac3 million for 2022, largely attributable to currency swaps (interest element). In 2021, the loss of \u20ac(4) million was mainly linked to \u20ac\ue61f(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The cost of discounting provisions relates to post-employment benefits (\u20ac(2) million) and to environmental provisions (\u20ac(17) million) and its decrease is largely attributable to the evolution of the applicable discount rates (see also note F31 Provisions). Currency translation differencesAccounting policyFor the purpose of presenting consolidated financial statements at the end of each reporting period, the assets and liabilities of the Group\u2019s foreign operations are expressed in euros using closing rates. Income and expense items are translated at the average exchange rates for the period except when the impact of applying the average rate is materially different from applying the spot rate at the respective transactions\u2019 dates, in which case the latter is applied. Exchange differences arising, if any, are recognized in other comprehensive income as \u201ccurrency translation differences\u201d.Currency translation differences are reclassified from equity to profit or loss, on: \u00b7 a disposal of the Group\u2019s entire interest in a foreign operation, or a partial disposal involving loss of control over a subsidiary that includes a foreign operation. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss. Any exchange differences that have previously been attributed to non-controlling interests are derecognized, but they are not reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation, when the retained interest is a financial asset. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint venture or an associate that includes a foreign operation and that continues to be accounted for as a joint venture or an associate. In this case, a proportionate share of the accumulated exchange differences is reclassified to profit or loss. In case of a partial disposal of a subsidiary (i.e. No loss of control) that includes a foreign operation, the proportionate share of accumulated exchange differences is reattributed to non-controlling interests and is not recognized in profit or loss. In case of (a) a capital decrease of a subsidiary without loss of control, or (b) a capital decrease of an equity method investee or a joint operation without modification of the share of equity interest held in that investee, then no accumulated exchange differences are reclassified from equity to profit or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated into the Group\u2019s presentation currency at the closing rate.The total currency translation gain amounts to \u20ac\ue61f304 million in 2022, and only relates to the Group\u2019s share (2021: gain of \u20ac\ue61f508\ue61fmillion). They are linked to the revaluation of the US dollar (\u20ac260 million) (2021: \u20ac331 million), Chinese Renminbi (\u20ac(40) million) (2021: \u20ac83 million), the Brazilian Real (\u20ac38 million) (2021: \u20ac11 million), the Russian ruble (\u20ac22 million) (2021: \u20ac21 million), compared to the Euro.NOTE\ue61fF20 GOODWILL AND BUSINESS COMBINATIONSGoodwill \u2013 overviewIn \u20ac million TotalDecember 31, 2020 3,265Currency translation differences 115Disposals -1December 31, 2021 3,379Currency translation differences 94December 31, 2022 3,472In 2022 and 2021, the currency translation differences mainly relate to goodwill expressed in US dollars.Goodwill by (groups of) CGU(s) Goodwill acquired in a business combination is allocated to the CGUs or groups of CGUs that are expected to benefit from that business combination.\ue61f 2022 \ue61f \ue61fIn \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUs \ue61f \ue61f \ue61f \ue61fMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUs \ue61f \ue61f \ue61f \ue61fComposite Materials 555 \ue61f 37 591Novecare 553 12 565Technology Solutions 690 \ue61f 43 734Special Chem 210 \ue61f 0 210Specialty Polymers 179 \ue61f 1 181Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,379 0 94 3,4722021In \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUsMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUsComposite Materials 509 \ue61f 46 555Novecare 542 -1 13 553Technology Solutions 636 \ue61f 54 690Special Chem 210 \ue61f 0 210\ue61f 2 Specialty Polymers 177179Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,265 -1 115 3,379See note F24 Impairment. NOTE\ue61fF21 PROPERTY, PLANT AND EQUIPMENTAccounting policyGeneralProperty, plant and equipment are tangible items that: \u00b7 are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and \u00b7 are expected to be used during more than one period.The items of property, plant and equipment owned by the Group are recognized as property, plant and equipment when the following conditions are satisfied: \u00b7 it is probable that the future economic benefits associated with the asset will \ufb02ow to the Group; \u00b7 the cost of the asset can be measured reliably.In \u20ac million Land and Fixtures and Other tan-Property, plant and equipment Totalbuildingsequipmentgible assetsunder constructionGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 2,819 9,699 414 405 13,337Additions 18 88 13 452 571Disposals and closures -16 -101 -29 0 -146Increase through business combinations 4 2 0 0 7Currency translation differences 101 348 13 24 486Other 15 151 7 -193 -20December 31, 2021 2,941 10,187 418 688 14,235Additions 28 103 8 715 854Disposals and closures -28 -132 -19 0 -179Increase through business combinations 0 0 0 0 0Currency translation differences 44 206 8 15 273Other 35 284 11 -385 -55December 31, 2022 3,021 10,648 425 1,033 15,128Accumulated depreciation \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -1,478 -6,813 -329 \ue61f -8,620Depreciation -73 -436 -27 \ue61f -535Impairment -5 -4 0 \ue61f -9Reversal of impairment 1 0 0 \ue61f 1Disposals and closures 12 101 29 \ue61f 143Currency translation differences -43 -226 -10 \ue61f -278Other 5 2 0 \ue61f 7December 31, 2021 -1,580 -7,375 -337 \ue61f -9,291Depreciation -80 -464 -27 \ue61f -570Impairment 0 -6 0 \ue61f -6Reversal of impairment 8 21 0 \ue61f 29Disposals and closures 26 130 19 \ue61f 175Currency translation differences -25 -151 -7 \ue61f -183Other 3 26 0 \ue61f 30December 31, 2022 -1,648 -7,818 -351 \ue61f -9,816Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 1,342 2,886 85 405 4,717December 31, 2021 1,361 2,813 81 688 4,943December 31, 2022 1,373 2,830 75 1,033 5,311The line \u201cOther\u201d mainly includes changes following portfolio transactions and reclassification of property, plant and equipment under construction to the appropriate categories when they are ready for intended use. Cash \ufb02ows related to major investments are disclosed in note F16 Cash \ufb02ows from investing activities \u2013 acquisition/disposal of\ue61fassets\ue61fand\ue61finvestments. Accounting policyDefinition of a lease At inception of a contract, which generally coincides with the date the contract is signed, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.An asset is typically identified by being explicitly specified in a contract. However, an asset can also be identified by being implicitly specified at the time that the asset is made available for use by the customer. If the supplier has a substantive substitution right, then the asset is not identified. A substantive substitution right means that (a) the supplier has the practical ability to substitute the asset throughout the period of use, and (b) would economically benefit from doing so. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether, throughout the period of use, it has: \u00b7 the right to obtain substantially all of the economic benefits from use of the identified asset; and \u00b7 the right to direct the use of the identified asset. This is generally the case when the Group has the decision-making rights regarding how and for what purpose the asset is used. The Group\u2019s leased assets relate mainly to buildings, transportation equipment, and industrial equipment.Lease termThe Group determines the lease term as the non-cancellable period of a lease, together with both: \u00b7 periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and \u00b7 periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option.In its assessment, the Group considers the impact of the following factors (non-exhaustive): \u00b7 contractual terms and conditions for the optional periods, compared with market rates; \u00b7 significant leasehold improvements undertaken (or expected to be undertaken) over the term of the contract; \u00b7 costs relating to the termination of the lease, including relocation costs, costs of identifying another underlying asset suitable for the Group\u2019s needs, costs of integrating a new asset into the Group\u2019s operations, and termination penalties; \u00b7 the importance of that underlying asset to the Group\u2019s operations, including the availability of suitable alternatives; \u00b7 conditionality associated with exercising the option (i.e. When the option can be exercised only if one or more conditions are met), and the likelihood that those conditions will exist; and \u00b7 past practice.Right-of-use asset and lease liabilityThe Group recognizes a right-of-use asset and a lease liability at the lease commencement date, which is the date that the lessor makes the asset available for use by the Group except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. The right-of-use assets are presented separately in the consolidated statement of financial position, and the lease liabilities are presented as part of financial debt.NOTE F22 RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONSRight-of-use assetThe right-of-use asset is initially measured at cost, which comprises: \u00b7 the amount of the initial measurement of the lease liability; \u00b7 any lease payments made at or before the commencement date, less any lease incentive received; and \u00b7 any initial direct costs incurred by the Group.After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any accumulated impairment losses. Right-of-use assets are depreciated using the straight-line depreciation method, from the commencement date to (a) the end of the useful life of the underlying asset, in case the lease transfers ownership of the underlying asset to the Group by the end of the lease term, or the lease contains a purchase option that the Group is reasonably certain to exercise, or (b) the earlier of the end of the useful life and the end of the lease term, in all other cases. Lease liabilityThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the respective Group entity\u2019s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise the following: \u00b7 fixed payments, less any lease incentives receivable; \u00b7 variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; \u00b7 amounts expected to be payable by the Group under residual value guarantees; \u00b7 the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and \u00b7 payments of penalties for early terminating the lease, if the Group is reasonably certain to exercise an option to early terminate the lease.Service components (e.g. Utilities, maintenance, insurance, \u2026) are excluded from the measurement of the lease liability. After the commencement date, the lease liability is measured by: \u00b7 increasing the carrying amount to re\ufb02ect interest on the lease liability; \u00b7 reducing the carrying amount to re\ufb02ect the lease payments made; and \u00b7 remeasuring the carrying amount to re\ufb02ect any reassessment or lease modifications, or to re\ufb02ect the impact from a revised index or rate.Leasing of PalladiumThe Group uses palladium, a precious metal, for certain of its operations. Next to purchasing this palladium, the Group also enters into various \u201cleasing\u201d agreements with financial institutions that give the Group the right to use palladium for a certain period and then return it at the end of the \u201clease\u201d. Based on our analysis of these agreements, these contracts are not in the scope of IFRS 16 Leases or IFRS 9 Financial Instruments. Due to the lack of clear IFRS guidance, the Group applied judgment to determine whether these rights and obligations shall be accounted for on a gross or a net basis. Considering that the Group bears no price risk during the \u2018lease\u2019 term and is not in full control of the asset (in accordance with the IFRS Conceptual Framework), the Group believes a net presentation gives a better view on the economic substance of the transaction. As a result, only accruals are recorded for the production losses and regeneration costs and the \u201clease\u201d fee is recognized within cost of sales. At the end of 2022, the total (gross) value of palladium leased still to be returned amounted to \u20ac59 million (end of 2021: \u20ac50 million) valued at the year-end closing rate.In \u20ac million Land Buildings Transpor-Industrial Other tangible Totaltation equipmentassetsequipmentGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 18 227 207 159 9 620Additions 0 29 23 82 1 134Disposals and closures 0 -1 -3 0 0 -4Currency translation differences 0 9 11 7 0 27Other 0 3 10 3 1 17Transfer to assets held for sale 0 0 0 0 0 1December 31, 2021 19 266 248 251 11 795Additions 0 8 46 27 5 86Disposals and closures 0 -38 -28 -11 -3 -79Currency translation differences 0 7 8 5 0 21Other 0 7 15 5 1 28Transfer to assets held for sale 0 0 0 0 0 0December 31, 2022 19 250 289 279 16 852Accumulated depreciation \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -2 -77 -83 -47 -6 -215Depreciation -1 -36 -42 -26 -3 -107Impairment 0 1 3 0 0 4Currency translation differences 0 -4 -5 -3 0 -11December 31, 2021 -4 -115 -127 -75 -8 -329Depreciation -1 -33 -46 -34 -3 -117Impairment 0 -3 0 0 0 -3Disposals and closures 0 38 28 11 3 79Currency translation differences 0 -3 -4 -2 0 -9December 31, 2022 -5 -115 -148 -100 -9 -378Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 16 150 124 112 4 405December 31, 2021 15 151 121 176 3 466December 31, 2022 14 134 141 178 6 474The Group primarily leases buildings that include office buildings, and warehouses. Those leases are generally long-term leases and may include extension options. Next, the Group leases transportation equipment that mainly consists of railcars and containers to transport the Group\u2019s products. Industrial equipment mainly relates to utility assets. In 2022, additions include \u20ac27 million for industrial equipment, \u20ac23 million for railcars and \u20ac17 million for containers.Lease contracts generally are negotiated by the local teams, and contain a wide range of different terms and conditions. Many lease contracts contain extension options and/or early termination options to provide the Group with operational \ufb02exibility. Such options are taken into account when determining the lease term and the lease liability when it is reasonably certain that they will be exercised. If the Group exercised its extension options not currently included in the lease liability, the present value of additional payments would amount to \u20ac\ue61f100\ue61fmillion at December 31, 2022 (\u20ac143 million at December 31, 2021). Lease contracts signed not yet commenced amount to \u20ac137 million at December 31, 2022 (\u20ac135 million for 2021) and mainly relate to a second waste wood boiler, steam turbine and auxiliaries in Germany, industrial equipment in France and rail cars in the United States. Total cash out\ufb02ows for leases amount to \u20ac134 million for 2022, of which \u20ac113 million related to payment of lease liabilities and \u20ac21 million of interest expenses. Information on the corresponding lease liabilities (\u20ac519 million) can be found in the note F33 Net indebtedness. Information on the finance expense related to lease liabilities can be found in note F6 Net financial charges. NOTE\ue61fF23 INVESTMENTS IN ASSOCIATES AND JOINT VENTURESThe list of associates and joint ventures is available in the note F40 List of companies included in the consolidation scope.The associates and joint ventures not classified as held for sale/discontinued operations are accounted for under the equity method of accounting.December 31, 2022December 31, 2021\ue61fIn \u20ac millionAssociates Joint Total \ue61f Associates Joint TotalventuresventuresInvestments in associates and joint ventures 18 790 809 \ue61f 18 619 637Earnings from associates and joint ventures 1 170 171 \ue61f 2 157 159INVESTMENTS IN ASSOCIATESIn \u20ac million 2022 2021January 1 18 16Profit for the year 1 2Dividends received -1 -2Currency translation differences 0 1December 31 18 18The tables below present the summary of the statement of financial position and income statement of the associates as if they were proportionately consolidated.In \u20ac million December 31, 2022 December 31, 2021Statement of financial position \ue61f\ue61fNon-current assets 14 14Current assets 17 16Cash and cash equivalents 3 3Non-current liabilities 2 2Non-current financial debt 1 1Current liabilities 11 10Current financial debt 2 2Investments in associates 18 18\ue61f \ue61f \ue61fIncome statement 2022 2021Sales 39 33Depreciation and amortization 1 -1Interest on loans and short term deposits 0 0Profit for the year from continuing operations 2 2Profit for the year 2 2\ue61f \ue61f \ue61fTotal comprehensive income 2 3\ue61f \ue61f \ue61fDividends received 1 1INVESTMENTS IN JOINT VENTURESIn \u20ac million 2022 2021January 1 619 479Additions 0 8Capital increase / (decrease) -5 0Profit for the year 170 157Dividends received -18 -127Currency translation differences 24 34Impairment reversal 0 67Other 1 1December 31 790 619In 2022 and 2021, the currency translation differences mainly relate to the evolution of the Russian ruble, of the Brazilian real and of the Indian rupee compared to the euro. In 2021, the impairment reversal of \u20ac67 million and the dividend received of \u20ac127 million mainly concern the joint venture Rusvinyl.In accordance with IFRS 11 Joint Arrangements, the Group has assessed whether the changes in the legal and operating environment of Russia have impacted the ability to exercise its joint control over Rusvinyl. There are no changes in facts and circumstances that may significantly limit the Group\u2019s ability to exercise its rights or governance with respect to Rusvinyl.The tables below present the summary of the statement of financial position and income statement of the material joint ventures as if they were proportionately consolidated.December 31, Rusvinyl Peroxidos Strata - Shandong Hindustan Aqua EECO Shinsol Cogenera-2022OOOdo Brasil Solvay Huatai Gum & Pharma Holding Advanced tion Rosi-LtdaAdvanced Interox Chemicals Groupand sub- ChemicalsgnanoMaterial Chemical LtdsidiariesJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership 50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4%interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 334 73 35 4 5 15 9 \ue61f 4assetsCurrent assets 147 89 10 12 153 9 13 8 2Cash and cash 113 39 9 9 138 6 4 8 2equivalentsNon-current 30 6 -0 - 5 1 6 \ue61f 3liabilitiesNon-current 6 3 -0 0 0 0 6 \ue61f 3financial debtCurrent liabilities 20 38 1 5 7 2 7 \ue61f 0Current financial 1 7 - 0 0 0 6 \ue61f 0debtInvestments in 431 118 43 11 146 21 9 8 3joint ventures\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f2022 income statement\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fSales 304 145 12 20 37 15 0 \ue61f 0Depreciation and -27 -5 0 0 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 7 4 0 0 6 0 0 \ue61f 0depositsIncome taxes -29 -16 0 -1 -1 -1 -1 \ue61f 0Profit for the year from 117 33 9 2 6 1 2 \ue61f 0continuing operationsProfit for the 117 33 9 2 6 1 2 \ue61f 0yearOther comprehensive 22 9 0 0 -8 0 0 \ue61f \ue61fincomeTotal comprehensive 138 42 9 2 -2 0 0 \ue61f 0incomeDividends 0 12 0 2 2 -1 0 \ue61f 0receivedOther comprehensive income mainly comprises the currency translation differences. December 31, Rusvinyl Peroxidos Strata - Shandong Hindus-Aqua EECO Hold-Shinsol Cogenera-2021OOOdo Brasil Solvay Huatai tan Gum Pharma ing and sub-Advanced tion Rosi-LtdaAdvanced Interox & Chemi-GroupsidiariesChemicalsgnanoMaterial Chemical cals LtdJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4% interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 324 61 29 4 5 16 10 \ue61f 5assetsCurrent assets 82 58 10 12 156 12 15 8 4Cash and cash 57 25 10 9 138 6 2 8 3equivalentsNon-current 50 7 0 - 5 4 8 \ue61f 4liabilitiesNon-current 30 4 0 0 0 0 8 \ue61f 4financial debtCurrent liabilities 64 26 3 5 8 1 9 \ue61f 1Current financial 39 4 - 0 0 0 8 \ue61f 1debtInvestments in 292 87 36 11 149 23 8 8 4joint ventures2021 income \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fstatementSales 276 88 13 22 22 18 0 \ue61f 0Depreciation and -22 -4 0 -1 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 2 1 0 0 7 0 1 \ue61f 0depositsIncome taxes -28 -11 0 -1 -2 -1 0 \ue61f 0Profit for the year from con-111 26 9 2 5 1 1 \ue61f 0tinuing opera-tionsProfit for the 111 26 9 2 5 1 1 \ue61f 0yearOther comprehensive 21 2 0 1 8 2 0 \ue61f \ue61fincomeTotal comprehensive 132 28 9 3 14 3 0 \ue61f 0incomeDividends re-103 15 0 1 2 -1 0 \ue61f 0ceivedOther comprehensive income mainly comprises the currency translation differences. NOTE F31PROVISIONSIn \u20ac million Employee benefits Restructuring Environment Litigation Other TotalDecember 31, 2021 1,574 191 648 62 126 2,600Additions 63 32 194 54 33 377Reversals of unused amounts 0 0 -17 -10 -13 -41Uses -101 -106 -90 -8 -24 -328Use of provisions for additional voluntary contri--155 -155butions (pension plans)Increase/decrease through discounting 3 0 -42 1 0 -39Remeasurements -351 0 0 0 0 -351Currency translation differences 16 2 13 3 1 34Acquisitions and changes in consolidation scope 0 0 0 0 0 0Disposals 0 0 0 0 0 0Other 8 0 -3 -4 0 0December 31, 2022 1,057 119 702 97 123 2,097Of which current provisions 0 81 108 52 57 297The provisions decreased by \u20ac(503) million in 2022, of which \u20ac(517) million for Employee benefits, \u20ac(72) million for Restructuring, partially offset by an increase of \u20ac54 million for Environment and \u20ac35 million for Litigation. Employees benefit includes other long-term benefits and termination benefits.For employee benefits, the deleveraging of \u20ac(517) million is explained as follows: \u00b7 payments (uses) for \u20ac(101) million, and voluntary contributions of \u20ac(155) million to pension funds to deleverage and de-risk; \u00b7 net new liabilities (additions and reversals) for \u20ac63 million; \u00b7 remeasurements, resulting from the changes in assumptions related to the gross liability for \u20ac(1,067) million (mainly due to changes in discount rates); \u00b7 return on plan assets increasing the liability by \u20ac631 million, of which \u20ac(85) million in deduction of \u201cIncrease through discounting\u201d and \u20ac716 million in increase of \u201cRemeasurements\u201d for the assets return exceeding the discount rate, which excludes the impact of remeasurements on the plan assets surplus (\u20ac(195) million); \u00b7 net increase through discounting for \u20ac3 million for the unwinding of the discount rate on the gross liability; \u00b7 other increases in the employee benefit obligations for \u20ac109 million mainly due to the reclassification of the amounts recognized in asset surplus and currency translation differences. Restructuring, environmental and litigation - see note F31.B Provisions other than employee benefits.The movements in Other provisions mainly relate to post-closing adjustments resulting from M&A warranties as well as indemnities for environmental remediation.Management expects provisions (other than employee benefits) to be used (cash outlays) as follows:In \u20ac millionup to 5 years between 5 and 10 years beyond 10 years TotalTotal provisions for environment 361 96 245 702Total provisions for litigation 92 5 97Total provisions for restructuring and other 226 16 241December 31, 2022 679 116 245 1,040NOTE\ue61fF33NET INDEBTEDNESSThe Group\u2019s net indebtedness is the balance between its financial debts and other financial instruments, and cash and cash equivalents.December 31, 2022 December 31, 2021In \u20ac millionFinancial debt 2,959 3,349Cash and cash equivalents -932 -941Other financial instruments -236 -259Net indebtedness 1,791 2,149The decrease in the net indebtedness is mainly due to the strong free cash \ufb02ow generation.\ue61f\ue61fSolvay Investment Grade rating is Baa2/P2 (stable outlook) with Moody\u2019s and BBB/A2 (negative outlook) with Standard & Poor\u2019s (upon the Solvay announcement of March 15, 2022 indicating the plans to separate itself into two independent companies).Financial debt: main borrowings December 31, 2022 December 31, 2021In \u20ac million (except where indicated) Nominal Coupon Maturity Secured Amount Fair Amount at Fair amountat avalueamortized valuemortized costcostSenior \u20ac notes 1.625% 2022 No 377 382Senior US$ note Cytec Industries Inc. (issuance 3.5% 2023 No 172 177US$ 400 million)Senior US$ note Cytec Industries Inc. (issuance 153 3.95% 2025 No 152 147 143 153US$ 250 million)Senior US$ notes (144A;US$ 800 million) 750 4.45% 2025 No 748 721 704 769Senior \u20ac notes 500 2.75% 2027 No 497 482 497 564Senior \u20ac notes 600 0.500% 2029 No 597 479 596 593Total 1,994 1,829 2,489 2,638There are no instances of default on the above-mentioned financial debts. There are no financial covenants, neither on Solvay SA, nor on any of the Group\u2019s holding companies.In 2022, the senior EUR bond (\u20ac378 million) was fully repaid in September as well as the Cytec bond (US$ 196 million) in December.Other financial instrumentsIn \u20ac million December 31, 2022 December 31, 2021Non-current other financial instruments 30 30Current other financial instruments 206 229Currency swaps 1 4Other marketable securities > 3 months 43 70Other current financial assets 162 155Other financial instruments 236 259The other marketable securities > 3 months include the bank drafts position.The other current financial assets mainly include margin calls of Energy Services for instruments with a negative fair value, and represent collateral for the obligations. Cash and cash equivalentsIn \u20ac million December 31, 2022 December 31, 2021Cash 630 620Term deposits 303 320Cash and cash equivalents 932 941By their nature, the carrying amount of cash and cash equivalents is equal to, or a very good proxy of, its fair value. Changes in financial debt and in other financial instruments arising from financing activities2021 2022In \u20ac million Total Cash \ufb02ows Cash \ufb02ows Changes Changes Other in Transfer Payment Other Total from from in foreign in other financing from non-of lease increase of repayment exchange current cash current to liabilities borrowings of rates financial \ufb02ows current borrowings assets Bonds 2,112 3 65 -186 1,994Other non-current debts 55 24 -32 2 -9 3 42Long term leasing debt 409 10 -125 119 413Non-current financial 2,576 27 -32 77 -320 121 2,450debtCurrent financial debt 773 222 -764 3 128 320 -113 -59 510Total financial debt 3,350 248 -796 80 128 -113 63 2,960Other non-current -30 -30financial instrumentsCurrency swaps -4 3 -1Other marketable-70 1 26 -43 securities > 3 monthsOther current financial -155 -2 1 -5 -162assetsOther financial -229 -1 27 -2 -206instrumentsTotal cash \ufb02ow -310 248 -796 79 27 128 -113 61 -366The financial debt decreased from \u20ac3,350 million at the end of 2021 to \u20ac2,960 million at the end of 2022.The non-current financial debt decreased by \u20ac(127) million, mainly resulting from: \u00b7 the transfer to current financial debt for \u20ac(320) million (mainly explained by the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186)\ue61fmillion and IFRS 16 leases for \u20ac(125) million); \u00b7 the change in foreign exchange rates for \u20ac77 million (significant impact of \u20ac65 million on senior bonds in USD); \u00b7 \u20ac119 million in \u201cOther\u201d mainly relates to leases that commenced during the year, as well as lease modifications.The current financial debt decreased by \u20ac(263) million, mainly in short term financial debt: \u00b7 the repayment in September 2022 of \u20ac(378) million for the remaining portion of the \u20ac750 million bonds and the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186) million; \u00b7 the transfer from non-current financial debt to current for \u20ac320 million (mainly explained by the Cytec bond US$ 196 million early repayment in December\ue61f2022 for \u20ac186 million and IFRS 16 leases for \u20ac125 million); \u00b7 the increase and decrease of borrowings is mainly explained by the issuance of commercial paper in June 2022 for \u20ac80 million, fully repaid in September\ue61f2022; and by short-term financing needs in Bulgaria and India; \u00b7 the increase of \u20ac128 million of margin calls on hedging instruments as part of Energy Services\u2019 activities; \u00b7 the repayment of short term lease obligations under IFRS 16 of \u20ac(113) million. The other financial instruments decreased by \u20ac23 million, mainly for the collateral related to the margin calls on energy services (see note F33 Net indebtedness), following the increase in the energy and gas prices. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-51-7": {
"value": "NOTE\ue61fF6 NET FINANCIAL CHARGESAccounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.In \u20ac million 2022 2021Cost of borrowings -96 -89Interest expense on lease liabilities -21 -19Interest on loans and short term deposits 17 9Other gains and losses on net indebtedness 3 -4Net cost of borrowings -98 -103Cost of discounting provisions -19 -47Impact of change of discount rate on provisions 59 48Result from equity instruments measured at fair value -13 6Net financial charges -70 -96Details are included in note\ue61fF33 Net indebtedness.The net cost of borrowings variance is mainly explained by:Higher cost of borrowings:\ue61f \u00b7 \u20ac(11) million related to a fee to implement\ue61fcommitted fully undrawn credit facilities of \u20ac2.9 billion as a back-up facility to ensure potential liquidity needs in the context of the separation plan.\ue61f \u00b7 \u20ac(4) million due to the foreign exchange conversion effect of the cost of borrowings in USD transaction currency.\ue61f \u00b7 \u20ac8 million savings related to the continuing efforts to repay debt, including the early repayment of \u20ac\ue61f377.5 million on the \u20ac\ue61f750 million senior bond in September 2022.\ue61f\ue61f\ue61fHigher interest income on loans and deposits (higher volumes and an increase in interest rates). Other gains and losses on net indebtedness from \u20ac(4) million for 2021 to \u20ac3 million for 2022, largely attributable to currency swaps (interest element). In 2021, the loss of \u20ac(4) million was mainly linked to \u20ac\ue61f(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The cost of discounting provisions relates to post-employment benefits (\u20ac(2) million) and to environmental provisions (\u20ac(17) million) and its decrease is largely attributable to the evolution of the applicable discount rates (see also note F31 Provisions). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-51-8": {
"value": "NOTE\ue61fF6 NET FINANCIAL CHARGESAccounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.In \u20ac million 2022 2021Cost of borrowings -96 -89Interest expense on lease liabilities -21 -19Interest on loans and short term deposits 17 9Other gains and losses on net indebtedness 3 -4Net cost of borrowings -98 -103Cost of discounting provisions -19 -47Impact of change of discount rate on provisions 59 48Result from equity instruments measured at fair value -13 6Net financial charges -70 -96Details are included in note\ue61fF33 Net indebtedness.The net cost of borrowings variance is mainly explained by:Higher cost of borrowings:\ue61f \u00b7 \u20ac(11) million related to a fee to implement\ue61fcommitted fully undrawn credit facilities of \u20ac2.9 billion as a back-up facility to ensure potential liquidity needs in the context of the separation plan.\ue61f \u00b7 \u20ac(4) million due to the foreign exchange conversion effect of the cost of borrowings in USD transaction currency.\ue61f \u00b7 \u20ac8 million savings related to the continuing efforts to repay debt, including the early repayment of \u20ac\ue61f377.5 million on the \u20ac\ue61f750 million senior bond in September 2022.\ue61f\ue61f\ue61fHigher interest income on loans and deposits (higher volumes and an increase in interest rates). Other gains and losses on net indebtedness from \u20ac(4) million for 2021 to \u20ac3 million for 2022, largely attributable to currency swaps (interest element). In 2021, the loss of \u20ac(4) million was mainly linked to \u20ac\ue61f(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The cost of discounting provisions relates to post-employment benefits (\u20ac(2) million) and to environmental provisions (\u20ac(17) million) and its decrease is largely attributable to the evolution of the applicable discount rates (see also note F31 Provisions). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-51-9": {
"value": "NOTE\ue61fF6 NET FINANCIAL CHARGESIn \u20ac million 2022 2021Cost of borrowings -96 -89Interest expense on lease liabilities -21 -19Interest on loans and short term deposits 17 9Other gains and losses on net indebtedness 3 -4Net cost of borrowings -98 -103Cost of discounting provisions -19 -47Impact of change of discount rate on provisions 59 48Result from equity instruments measured at fair value -13 6Net financial charges -70 -96Details are included in note\ue61fF33 Net indebtedness.The net cost of borrowings variance is mainly explained by:Higher cost of borrowings:\ue61f \u00b7 \u20ac(11) million related to a fee to implement\ue61fcommitted fully undrawn credit facilities of \u20ac2.9 billion as a back-up facility to ensure potential liquidity needs in the context of the separation plan.\ue61f \u00b7 \u20ac(4) million due to the foreign exchange conversion effect of the cost of borrowings in USD transaction currency.\ue61f \u00b7 \u20ac8 million savings related to the continuing efforts to repay debt, including the early repayment of \u20ac\ue61f377.5 million on the \u20ac\ue61f750 million senior bond in September 2022.\ue61f\ue61f\ue61fHigher interest income on loans and deposits (higher volumes and an increase in interest rates). Other gains and losses on net indebtedness from \u20ac(4) million for 2021 to \u20ac3 million for 2022, largely attributable to currency swaps (interest element). In 2021, the loss of \u20ac(4) million was mainly linked to \u20ac\ue61f(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The cost of discounting provisions relates to post-employment benefits (\u20ac(2) million) and to environmental provisions (\u20ac(17) million) and its decrease is largely attributable to the evolution of the applicable discount rates (see also note F31 Provisions). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-52-10": {
"value": "Accounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-52-11": {
"value": "Accounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-52-12": {
"value": "Accounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.Borrowing costsBorrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.All other borrowing costs are recognized in profit or loss in the period in which they are incurred.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-52-13": {
"value": "Accounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-52-14": {
"value": "Accounting policyInterest on borrowings is recognized in costs of borrowings as incurred, with the exception of borrowing costs directly attributable to the acquisition, construction and production of qualifying assets (see note F21 Property, Plant and Equipment).Net foreign exchange gains or losses on financial items and changes in fair value of derivative financial instruments related to net indebtedness are presented in \u201cOther gains and losses on net indebtedness\u201d, with the exception of changes in fair value of derivative financial instruments that are hedging instruments in a cash \ufb02ow hedge relationship, and which are recognized on the same line as the hedged item, when the latter affects profit or loss.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-54-2": {
"value": "NOTE\ue61fF7INCOME TAXES IN THE INCOME STATEMENT AND THE STATEMENT OF FINANCIAL POSITIONAccounting policyCurrent taxesThe current tax payable is based on taxable profit of the year. Taxable profit differs from profit as reported in the consolidated income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group\u2019s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.Deferred taxesDeferred taxes are recognized for temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax bases used in the computation of taxable profit.Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.Deferred tax liabilities are generally recognized for all taxable temporary differences. No deferred tax liabilities are recognized following the initial recognition of goodwill. In addition, no deferred tax assets or liabilities are recognized with respect to the initial recognition of an asset or liability in a transaction which is not a business combination and affects neither accounting profit nor taxable profit.Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, joint operations, joint ventures, and associates, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets other than tax loss carryforwards are analyzed on a case by case basis, taking into account all relevant facts and circumstances. For example, a zero taxable profit, after deducting the amounts paid to retirees under a defined benefit plan and for which a deductible temporary difference existed, can justify the recognition of the underlying deferred tax assets. Recognition of deferred tax assets for tax loss carryforwards requires a positive taxable profit during the year that enables the utilization of tax losses that originated in the past. Because of uncertainties inherent to predicting such positive taxable profit, recognition of deferred tax assets from tax loss carryforwards is based on a case by case analysis, which is usually based on five-year profit forecasts, except with respect to any financial company for which ten-year financial profit forecasts are considered highly predictable and are consequently used. The corporate tax reporting team, which monitors the Group deferred tax positions, is involved in assessing deferred tax assets.Further details are provided in note\ue61fF7.C.Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets re\ufb02ects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amounts and when the Group intends to settle its current tax assets and liabilities on a net basis.Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.Current and deferred taxes for the periodCurrent and deferred taxes for the period are recognized as an expense or income in profit or loss, except when they relate to items that are recognized outside profit or loss (whether in other comprehensive income or directly in equity), in which case the tax is also recognized outside profit or loss, or when they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in the accounting for the business combination.Exception to the above, as from January 1, 2019, the Group applies the amendments to IAS 12, that apply to the income tax consequences of dividends recognized on or after the beginning of the earliest comparative period, i.e. January 1, 2018. In 2018, the income tax consequences of the coupons on perpetual hybrid bonds classified as equity were recognized in equity. As a result of the adoption of the amendment, those income tax consequences are now recognized in profit or loss.F7.A. Income taxesThe income taxes (net expense) recognized in the consolidated income statement increased by \u20ac(107) million in 2022 compared to 2021. The income taxes (net expense) recognized in other comprehensive income decreased by \u20ac10 million in 2022 compared to 2021, mainly due to the movement in employee benefit provisions (see note F31.A Provisions for employee benefits).In \u20ac million 2022 2021Current taxes related to current year -360 -236Provisions for tax litigations 21 -1Other current taxes related to prior years (a) -18 0Current taxes -357 -237Changes in unrecognized deferred tax assets (b) 177 127Deferred tax income on amortization of PPA step-ups 35 37Deferred tax impact of changes in the nominal tax rates 0 -2Deferred taxes related to prior years (a) 38 3Changes in deferred tax assets O&G US (c) 105 15Other deferred taxes (d) -214 -52Deferred taxes 141 127Income taxes recognized in the consolidated income statement -217 -110Income taxes on items recognized in other comprehensive income -66 -77The current taxes (net expense) related to the current year increased by \u20ac(121) million due to higher taxable profits in countries with high effective tax rates slightly offset by the reversal of provisions for tax litigation in Spain and in the US.(a) The current and deferred taxes related to prior years (\u20ac20 million) derive mainly from the changes in deferred taxes (primarily on foreign income book to tax basis) in the United States (\u20ac21 million). (b) In 2022, the change in unrecognized deferred tax assets amounts to \u20ac177 million resulting mainly from a revision of the forecasts of utilization of tax losses carried forward in the holding companies (\u20ac170 million). (c) The deferred tax assets on the goodwill and other tangible and intangible assets for Oil & Gas in the United States were written-down in the US tax unit in 2020. Based on a reassessment of recoverability of these deferred tax assets at the end of 2022, the write-down of the deferred tax assets was reversed (\u20ac15 million in 2021 and \u20ac105 million in 2022).(d) Other deferred taxes:In 2022, the other deferred income taxes (\u20ac(214) million) included: \u00b7 The utilization of tax losses carried forward for \u20ac(109) million; \u00b7 The tax impact of the recognition of the CO forward purchase contracts for \u20ac(75) million (see note F32 Financial instruments and Financial risk 2management); \u00b7 The use of deferred taxes related to the Brazilian PIS/COFINs credits recognized in 2021 for \u20ac20 million; \u00b7 Other net increases and reversals of other temporary differences for \u20ac(50) million of which \u20ac(32) million in provisions other than employee benefits.Developments in International TaxationThe Organization for Economic Co-operation and Development (OECD) initiative to combat base erosion and profit shifting (BEPS) has led to the development of a number of measures which countries plan to introduce. These include the Pillar Two initiative, focused on the introduction of a global minimum corporate tax rate, with the possibility of top-up taxes being introduced in cases where jurisdictions do not comply with the minimum tax rate. The Group is currently assessing the accounting implications and the jurisdictions that could give rise to additional taxation as a result of the implementation of the Pillar 2 Model Rules in national laws, which is not expected to be material for the Group.F7.B. Reconciliation of the income tax expenseThe effective income tax expense has been reconciled with the theoretical tax expense obtained by applying to the pre-tax profit of each Group entity the nominal tax rate prevailing in the country in which it operates.In \u20ac million 2022 2021Profit/(Loss) for the year before taxes 2,151 1,094Earnings from associates and joint ventures 171 158Profit/(Loss) for the year before taxes excluding earnings from associates and joint ventures 1,980 936Reconciliation of the tax income/(expense) \ue61f Total tax income/(expense) of the Group entities computed on the basis of the respective local nominal rates -546 -284Weighted average nominal rate 28% 30%Tax effect of changes in nominal tax rates 0 -2Changes in unrecognized deferred tax assets 177 127Tax effect of permanent differences 26 37Gain and losses with no tax expense and income 6 10US taxes disconnected from profit for the year before taxes -15 -9Changes in deferred tax assets O&G US 105 15Provisions for tax litigations 21 -1Other tax effect of current and deferred tax adjustments related to prior years 19 3Tax effect on distribution of dividends -8 -6Effective tax income/(expense) -217 -110Effective tax rate 10% 10%The weighted average nominal rate slightly decreased from 2021 (30%) to 2022 (28%) mainly due to the decrease of the withholding taxes on dividends. The high nominal tax rate is mainly due to elevated earnings in countries with higher nominal tax rates (e.g. Brazil, Italy).F7.C. Deferred taxes in the consolidated statement of financial position2022 - In \u20ac million Opening Recognized Recognized Exchange Other Other Closing balancein income in other com-rate acquisition balancestatementprehensive effect/ disposalincomeTemporary differencesEmployee benefits obligations 289 7 -68 5 \ue61f 1 234Provisions other than employee benefits 208 -42 \ue61f 9 0 0 175Property, plant and equipment -225 7 \ue61f -15 0 -1 -234Intangible assets -274 96 \ue61f -17 0 \ue61f -196Right-of-use assets -74 -4 \ue61f -2 0 0 -81Lease liabilities 75 4 \ue61f 3 \ue61f 0 82Goodwill 3 56 \ue61f -1 \ue61f \ue61f 58Other temporary differences 20 -84 1 -3 0 0 -66Tax losses 263 109 \ue61f 3 0 \ue61f 375Tax credits 33 -7 \ue61f 1 \ue61f \ue61f 27Total (net amount) 318 141 -66 -18 0 0 3742021 - In \u20ac million Opening Recognized Recognized Exchange Other Transfer Closing balancein income in other com-rate effectacquisition to assets balancestatementprehensive / disposalheld for incomesaleTemporary differencesEmployee benefits obligations 403 -12 -104 2 -5 5 289Provisions other than employee benefits 204 -4 6 -1 2 208Property, plant and equipment -262 27 32 -19 2 -5 -225-311 65 -24 -4 -274Intangible assetsRight-of-use assets -74 4 -3 1 -2 -74Lease liabilities 76 -4 3 -1 1 75Goodwill 3 3Other temporary differences 26 -4 -4 2 20Tax losses 209 50 5 -3 3 263Tax credits 27 5 1 33Total (net amount) 301 127 -77 -27 -10 3 318The significant components of the deferred tax assets and deferred tax liabilities at the end of 2022 and 2021 are as follows:In \u20ac million 2022Deferred tax Deferred tax Net deferred Write-down of Net deferred assetsliabilitiestaxes before deferred tax taxeswrite-downassets (unrecog-nized portion)Employee benefits obligations 328 -94 234 0 234Provisions other than employee benefits 241 -66 174 1 175Property, plant and equipment 69 -275 -207 -28 -234Intangible assets 261 -381 -120 -76 -196Right-of-use assets 0 -82 -81 0 -81Lease liabilities 80 2 82 0 82Goodwill 58 0 58 0 58Other 175 -238 -63 -3 -66Temporary differences 1,211 -1,133 76 -105 -29Operational losses 1,479 0 1,479 -1,187 292Non-operational losses 308 0 308 -225 83Tax losses 1,787 0 1,787 -1,412 375Tax credits carried forward 81 1 81 -55 27Netting deferred taxes -575 575 0 0 0Deferred taxes 2,504 -557 1,945 -1,572 374In \u20ac million 2021Deferred tax Deferred tax Net deferred Write-down of Net deferred assetsliabilitiestaxes before deferred tax taxeswrite-downassets (unrecog-nized portion)Employee benefits obligations 413 -123 290 -1 289 Provisions other than employee benefits 244 -38 206 1 208 Property, plant and equipment 118 -314 -195 -30 -225Intangible assets 107 -385 -277 3 -274Right-of-use assets 0 -74 -74 -74Lease liabilities 77 -1 75 75 Goodwill 3 3 3 Other 105 -78 27 -7 20 Temporary differences 1,068 -1,012 56 -34 22 Operational losses 1,566 1,566 -1,398 169 Non-operational losses 331 331 -237 95 Tax losses 1,898 1,898 -1,635 263 Tax credits carried forward 78 78 -45 33 Netting deferred taxes -551 551 Deferred taxes 2,492 -461 2,031 -1,713 318 The total offset deferred taxes of \u20ac374 million at year-end 2022 are \u20ac56 million higher than in 2021. The main changes in 2022 are related to the following items: \u00b7 deferred tax assets on employee benefit obligations: \u20ac234 million at year-end 2022 - \u20ac55 million lower than in 2021, explained by the decrease of post-employment benefits obligations following an increase of the discount rates; \u00b7 deferred tax liabilities on provisions other than employee benefits: \u20ac176 million at year-end 2022 - \u20ac32 million lower than in 2021; \u00b7 deferred tax liabilities on intangible assets: \u20ac(196) million at year-end 2022 - \u20ac78 million lower than in 2021. The decrease in these liabilities in 2022 mainly re\ufb02ects: - exchange rate impacts of \u20ac(18) million; - the tax impact of \u20ac35 million of amortization in the consolidated income statement of the step-up of intangible assets resulting from Purchase Price Allocation; - the reversal of the write-off of the deferred taxes on intangible assets for Oil & Gas in the United States for \u20ac49 million. \u00b7 deferred tax liabilities on goodwill: \u20ac58 million at year-end 2022 - \u20ac55 million higher than in 2021 due to the reversal of the write-off of the deferred taxes on goodwill for Oil & Gas in the United States; \u00b7 deferred taxes on operational and non-operational tax losses: \u20ac374 million at year-end 2022 - \u20ac112 million higher than in 2021 mainly due to: - the revision of the forecasts of utilization of tax losses carried forward in the holding companies (\u20ac170 million); - the newly created or utilized deferred tax on tax losses for \u20ac(109) million; - the recognition of deferred tax assets on losses up to \u20ac45 million in Luxembourg considering an increase of the taxable temporary differences in the same Tax Group. \u00b7 deferred tax assets on other temporary differences: \u20ac(66) million at year-end 2022 - \u20ac86 million lower than in 2021 mainly due to the recognition of the CO emission rights contracts for \u20ac(75) million and the taxable temporary differences in Luxembourg for \u20ac(45) million offset by the use of deferred taxes 2related to the Brazilian PIS/COFINs credits recognized in 2021 for \u20ac20 million and the changes in deferred taxes (mainly on foreign income book to tax basis) in the United States for \u20ac21 million. At year-end 2022, \u20ac(56) million for deferred tax liabilities on unremitted earnings were recognized in the Other Temporary differences. An amount of \u20ac\ue61f32 million was not recognized because the Group controls the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.Recognized deferred taxes for which utilization depends on future taxable profits in excess of the profit arising from the reversal of existing taxable temporary differences within entities that have suffered a tax loss in either current or preceding years in the related tax jurisdiction, amount to \u20ac134\ue61fmillion. This recognition is supported by favorable expectations of future taxable profits.F7.D. Other informationFor the majority of the Group\u2019s tax loss carryforwards, no deferred tax assets have been recognized. The unrecognized tax losses are mainly located in countries where they can be carried forward indefinitely. The tax losses carried forward generating deferred tax assets are given below by expiration date.In \u20ac million 2022 2021Within 1 year 0 15Within 2 years 1 16Within 3 years 1 2Within 4 years 0 2Within 5 or more years 12 28No time limit 1,402 974Total of losses carried forward which have generated recognized deferred tax assets 1,417 1,037Tax losses carried forward for which no deferred tax assets were recognized 5,203 6,050Total of tax losses carried forward 6,620 7,087The tax losses carried forward of \u20ac\ue61f1,417\ue61fmillion (\u20ac1,037 million in 2021) have generated deferred tax assets for \u20ac\ue61f374\ue61fmillion (\u20ac263 million in 2021). The increase of tax losses carried forward which have generated deferred tax assets, is largely due to the revised forecast for the holding company in France.Presentation of the tax effect relating to each item of\ue61fother\ue61fcomprehensive\ue61fincomeNote: the below table presents the total other comprehensive income items for the aggregate of the shares of Solvay and the non-controlling interests.\ue61f 2022 \ue61fIn \u20ac million Before-tax Tax expense Net of tax amount(-)/incomeamountEffective portion of gains and losses on hedging instruments in a cash \ufb02ow hedge 304 -7 297Recycling to the income statement -225 \ue61d -225Gains and losses on hedging instruments in a cash \ufb02ow hedge (see note F32) 79 -7 72Currency translation differences arising during the year 285 \ue61d 285Recycling of currency translations differences relating to foreign operations disposed of\ue61d in -1 \ue61d -1the\ue61dyearOther movement of currency translation differences (NCI) relating to foreign operations 0 \ue61f 0Currency translation differences - Subsidiaries and joint operations 284 \ue61f 284Share of other comprehensive income of associates and joint ventures 22 \ue61f 22Recyclable components 385 -7 377Gains and losses on equity instruments measured at fair value through other comprehensive -25 6 -19incomeRemeasurements of the net defined benefit liability (see notes F7 & F31) 155 -66 89Non-recyclable components 130 -60 70Other comprehensive income/(loss) 515 -67 447\ue61f 2021 \ue61fIn \u20ac million Before-tax Tax expense Net of tax amount(-)/incomeamountEffective portion of gains and losses on hedging instruments in a cash \ufb02ow hedge 71 5 76Recycling to the income statement -87 \ue61d -87Gains and losses on hedging instruments in a cash \ufb02ow hedge (see note F32) -17 5 -11Currency translation differences arising during the year 432 \ue61d 432Recycling of currency translations differences relating to foreign operations disposed of\ue61din the 47 \ue61d 47yearOther movement of currency translation differences (NCI) relating to foreign operations 8 \ue61f 8Currency translation differences - Subsidiaries and joint operations 487 \ue61f 487Share of other comprehensive income of associates and joint ventures 29 \ue61f 29Recyclable components 500 5 505Gains and losses on equity instruments measured at fair value through other comprehensive 33 -8 25incomeRemeasurements of the net defined benefit liability (see notes F7 & F31) 562 -75 487Non-recyclable components 594 -83 512Other comprehensive income/(loss) 1,094 -78 1,017The \u20ac33 million gain on equity instruments measured at fair value through other comprehensive income mainly relates to a Solvay Ventures investment that was listed in Q4 of 2021.NOTE\ue61fF13 INCOME TAXES IN THE STATEMENT OF CASH FLOWSIncome tax expense in 2022 amounts to \u20ac217 million (\u20ac110 million in 2021), all of which was from continuing operations. Income tax paid in 2022 amounts to \u20ac305 million (\u20ac233 million in 2021), all of which was from continuing operations. The income tax paid has increased compared to previous years due to increased profits mainly in China, the US and Italy.The major components of Income taxes are discussed in note F7 Income taxes in income statement and statement of financial position. ",
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"pp-value-54-3": {
"value": "NOTE\ue61fF7INCOME TAXES IN THE INCOME STATEMENT AND THE STATEMENT OF FINANCIAL POSITIONAccounting policyCurrent taxesThe current tax payable is based on taxable profit of the year. Taxable profit differs from profit as reported in the consolidated income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group\u2019s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.Deferred taxesDeferred taxes are recognized for temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax bases used in the computation of taxable profit.Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.Deferred tax liabilities are generally recognized for all taxable temporary differences. No deferred tax liabilities are recognized following the initial recognition of goodwill. In addition, no deferred tax assets or liabilities are recognized with respect to the initial recognition of an asset or liability in a transaction which is not a business combination and affects neither accounting profit nor taxable profit.Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, joint operations, joint ventures, and associates, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets other than tax loss carryforwards are analyzed on a case by case basis, taking into account all relevant facts and circumstances. For example, a zero taxable profit, after deducting the amounts paid to retirees under a defined benefit plan and for which a deductible temporary difference existed, can justify the recognition of the underlying deferred tax assets. Recognition of deferred tax assets for tax loss carryforwards requires a positive taxable profit during the year that enables the utilization of tax losses that originated in the past. Because of uncertainties inherent to predicting such positive taxable profit, recognition of deferred tax assets from tax loss carryforwards is based on a case by case analysis, which is usually based on five-year profit forecasts, except with respect to any financial company for which ten-year financial profit forecasts are considered highly predictable and are consequently used. The corporate tax reporting team, which monitors the Group deferred tax positions, is involved in assessing deferred tax assets.Further details are provided in note\ue61fF7.C.Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets re\ufb02ects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amounts and when the Group intends to settle its current tax assets and liabilities on a net basis.Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.Current and deferred taxes for the periodCurrent and deferred taxes for the period are recognized as an expense or income in profit or loss, except when they relate to items that are recognized outside profit or loss (whether in other comprehensive income or directly in equity), in which case the tax is also recognized outside profit or loss, or when they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in the accounting for the business combination.Exception to the above, as from January 1, 2019, the Group applies the amendments to IAS 12, that apply to the income tax consequences of dividends recognized on or after the beginning of the earliest comparative period, i.e. January 1, 2018. In 2018, the income tax consequences of the coupons on perpetual hybrid bonds classified as equity were recognized in equity. As a result of the adoption of the amendment, those income tax consequences are now recognized in profit or loss.F7.A. Income taxesThe income taxes (net expense) recognized in the consolidated income statement increased by \u20ac(107) million in 2022 compared to 2021. The income taxes (net expense) recognized in other comprehensive income decreased by \u20ac10 million in 2022 compared to 2021, mainly due to the movement in employee benefit provisions (see note F31.A Provisions for employee benefits).In \u20ac million 2022 2021Current taxes related to current year -360 -236Provisions for tax litigations 21 -1Other current taxes related to prior years (a) -18 0Current taxes -357 -237Changes in unrecognized deferred tax assets (b) 177 127Deferred tax income on amortization of PPA step-ups 35 37Deferred tax impact of changes in the nominal tax rates 0 -2Deferred taxes related to prior years (a) 38 3Changes in deferred tax assets O&G US (c) 105 15Other deferred taxes (d) -214 -52Deferred taxes 141 127Income taxes recognized in the consolidated income statement -217 -110Income taxes on items recognized in other comprehensive income -66 -77The current taxes (net expense) related to the current year increased by \u20ac(121) million due to higher taxable profits in countries with high effective tax rates slightly offset by the reversal of provisions for tax litigation in Spain and in the US.(a) The current and deferred taxes related to prior years (\u20ac20 million) derive mainly from the changes in deferred taxes (primarily on foreign income book to tax basis) in the United States (\u20ac21 million). (b) In 2022, the change in unrecognized deferred tax assets amounts to \u20ac177 million resulting mainly from a revision of the forecasts of utilization of tax losses carried forward in the holding companies (\u20ac170 million). (c) The deferred tax assets on the goodwill and other tangible and intangible assets for Oil & Gas in the United States were written-down in the US tax unit in 2020. Based on a reassessment of recoverability of these deferred tax assets at the end of 2022, the write-down of the deferred tax assets was reversed (\u20ac15 million in 2021 and \u20ac105 million in 2022).(d) Other deferred taxes:In 2022, the other deferred income taxes (\u20ac(214) million) included: \u00b7 The utilization of tax losses carried forward for \u20ac(109) million; \u00b7 The tax impact of the recognition of the CO forward purchase contracts for \u20ac(75) million (see note F32 Financial instruments and Financial risk 2management); \u00b7 The use of deferred taxes related to the Brazilian PIS/COFINs credits recognized in 2021 for \u20ac20 million; \u00b7 Other net increases and reversals of other temporary differences for \u20ac(50) million of which \u20ac(32) million in provisions other than employee benefits.Developments in International TaxationThe Organization for Economic Co-operation and Development (OECD) initiative to combat base erosion and profit shifting (BEPS) has led to the development of a number of measures which countries plan to introduce. These include the Pillar Two initiative, focused on the introduction of a global minimum corporate tax rate, with the possibility of top-up taxes being introduced in cases where jurisdictions do not comply with the minimum tax rate. The Group is currently assessing the accounting implications and the jurisdictions that could give rise to additional taxation as a result of the implementation of the Pillar 2 Model Rules in national laws, which is not expected to be material for the Group.F7.B. Reconciliation of the income tax expenseThe effective income tax expense has been reconciled with the theoretical tax expense obtained by applying to the pre-tax profit of each Group entity the nominal tax rate prevailing in the country in which it operates.In \u20ac million 2022 2021Profit/(Loss) for the year before taxes 2,151 1,094Earnings from associates and joint ventures 171 158Profit/(Loss) for the year before taxes excluding earnings from associates and joint ventures 1,980 936Reconciliation of the tax income/(expense) \ue61f Total tax income/(expense) of the Group entities computed on the basis of the respective local nominal rates -546 -284Weighted average nominal rate 28% 30%Tax effect of changes in nominal tax rates 0 -2Changes in unrecognized deferred tax assets 177 127Tax effect of permanent differences 26 37Gain and losses with no tax expense and income 6 10US taxes disconnected from profit for the year before taxes -15 -9Changes in deferred tax assets O&G US 105 15Provisions for tax litigations 21 -1Other tax effect of current and deferred tax adjustments related to prior years 19 3Tax effect on distribution of dividends -8 -6Effective tax income/(expense) -217 -110Effective tax rate 10% 10%The weighted average nominal rate slightly decreased from 2021 (30%) to 2022 (28%) mainly due to the decrease of the withholding taxes on dividends. The high nominal tax rate is mainly due to elevated earnings in countries with higher nominal tax rates (e.g. Brazil, Italy).F7.C. Deferred taxes in the consolidated statement of financial position2022 - In \u20ac million Opening Recognized Recognized Exchange Other Other Closing balancein income in other com-rate acquisition balancestatementprehensive effect/ disposalincomeTemporary differencesEmployee benefits obligations 289 7 -68 5 \ue61f 1 234Provisions other than employee benefits 208 -42 \ue61f 9 0 0 175Property, plant and equipment -225 7 \ue61f -15 0 -1 -234Intangible assets -274 96 \ue61f -17 0 \ue61f -196Right-of-use assets -74 -4 \ue61f -2 0 0 -81Lease liabilities 75 4 \ue61f 3 \ue61f 0 82Goodwill 3 56 \ue61f -1 \ue61f \ue61f 58Other temporary differences 20 -84 1 -3 0 0 -66Tax losses 263 109 \ue61f 3 0 \ue61f 375Tax credits 33 -7 \ue61f 1 \ue61f \ue61f 27Total (net amount) 318 141 -66 -18 0 0 3742021 - In \u20ac million Opening Recognized Recognized Exchange Other Transfer Closing balancein income in other com-rate effectacquisition to assets balancestatementprehensive / disposalheld for incomesaleTemporary differencesEmployee benefits obligations 403 -12 -104 2 -5 5 289Provisions other than employee benefits 204 -4 6 -1 2 208Property, plant and equipment -262 27 32 -19 2 -5 -225-311 65 -24 -4 -274Intangible assetsRight-of-use assets -74 4 -3 1 -2 -74Lease liabilities 76 -4 3 -1 1 75Goodwill 3 3Other temporary differences 26 -4 -4 2 20Tax losses 209 50 5 -3 3 263Tax credits 27 5 1 33Total (net amount) 301 127 -77 -27 -10 3 318The significant components of the deferred tax assets and deferred tax liabilities at the end of 2022 and 2021 are as follows:In \u20ac million 2022Deferred tax Deferred tax Net deferred Write-down of Net deferred assetsliabilitiestaxes before deferred tax taxeswrite-downassets (unrecog-nized portion)Employee benefits obligations 328 -94 234 0 234Provisions other than employee benefits 241 -66 174 1 175Property, plant and equipment 69 -275 -207 -28 -234Intangible assets 261 -381 -120 -76 -196Right-of-use assets 0 -82 -81 0 -81Lease liabilities 80 2 82 0 82Goodwill 58 0 58 0 58Other 175 -238 -63 -3 -66Temporary differences 1,211 -1,133 76 -105 -29Operational losses 1,479 0 1,479 -1,187 292Non-operational losses 308 0 308 -225 83Tax losses 1,787 0 1,787 -1,412 375Tax credits carried forward 81 1 81 -55 27Netting deferred taxes -575 575 0 0 0Deferred taxes 2,504 -557 1,945 -1,572 374In \u20ac million 2021Deferred tax Deferred tax Net deferred Write-down of Net deferred assetsliabilitiestaxes before deferred tax taxeswrite-downassets (unrecog-nized portion)Employee benefits obligations 413 -123 290 -1 289 Provisions other than employee benefits 244 -38 206 1 208 Property, plant and equipment 118 -314 -195 -30 -225Intangible assets 107 -385 -277 3 -274Right-of-use assets 0 -74 -74 -74Lease liabilities 77 -1 75 75 Goodwill 3 3 3 Other 105 -78 27 -7 20 Temporary differences 1,068 -1,012 56 -34 22 Operational losses 1,566 1,566 -1,398 169 Non-operational losses 331 331 -237 95 Tax losses 1,898 1,898 -1,635 263 Tax credits carried forward 78 78 -45 33 Netting deferred taxes -551 551 Deferred taxes 2,492 -461 2,031 -1,713 318 The total offset deferred taxes of \u20ac374 million at year-end 2022 are \u20ac56 million higher than in 2021. The main changes in 2022 are related to the following items: \u00b7 deferred tax assets on employee benefit obligations: \u20ac234 million at year-end 2022 - \u20ac55 million lower than in 2021, explained by the decrease of post-employment benefits obligations following an increase of the discount rates; \u00b7 deferred tax liabilities on provisions other than employee benefits: \u20ac176 million at year-end 2022 - \u20ac32 million lower than in 2021; \u00b7 deferred tax liabilities on intangible assets: \u20ac(196) million at year-end 2022 - \u20ac78 million lower than in 2021. The decrease in these liabilities in 2022 mainly re\ufb02ects: - exchange rate impacts of \u20ac(18) million; - the tax impact of \u20ac35 million of amortization in the consolidated income statement of the step-up of intangible assets resulting from Purchase Price Allocation; - the reversal of the write-off of the deferred taxes on intangible assets for Oil & Gas in the United States for \u20ac49 million. \u00b7 deferred tax liabilities on goodwill: \u20ac58 million at year-end 2022 - \u20ac55 million higher than in 2021 due to the reversal of the write-off of the deferred taxes on goodwill for Oil & Gas in the United States; \u00b7 deferred taxes on operational and non-operational tax losses: \u20ac374 million at year-end 2022 - \u20ac112 million higher than in 2021 mainly due to: - the revision of the forecasts of utilization of tax losses carried forward in the holding companies (\u20ac170 million); - the newly created or utilized deferred tax on tax losses for \u20ac(109) million; - the recognition of deferred tax assets on losses up to \u20ac45 million in Luxembourg considering an increase of the taxable temporary differences in the same Tax Group. \u00b7 deferred tax assets on other temporary differences: \u20ac(66) million at year-end 2022 - \u20ac86 million lower than in 2021 mainly due to the recognition of the CO emission rights contracts for \u20ac(75) million and the taxable temporary differences in Luxembourg for \u20ac(45) million offset by the use of deferred taxes 2related to the Brazilian PIS/COFINs credits recognized in 2021 for \u20ac20 million and the changes in deferred taxes (mainly on foreign income book to tax basis) in the United States for \u20ac21 million. At year-end 2022, \u20ac(56) million for deferred tax liabilities on unremitted earnings were recognized in the Other Temporary differences. An amount of \u20ac\ue61f32 million was not recognized because the Group controls the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.Recognized deferred taxes for which utilization depends on future taxable profits in excess of the profit arising from the reversal of existing taxable temporary differences within entities that have suffered a tax loss in either current or preceding years in the related tax jurisdiction, amount to \u20ac134\ue61fmillion. This recognition is supported by favorable expectations of future taxable profits.F7.D. Other informationFor the majority of the Group\u2019s tax loss carryforwards, no deferred tax assets have been recognized. The unrecognized tax losses are mainly located in countries where they can be carried forward indefinitely. The tax losses carried forward generating deferred tax assets are given below by expiration date.In \u20ac million 2022 2021Within 1 year 0 15Within 2 years 1 16Within 3 years 1 2Within 4 years 0 2Within 5 or more years 12 28No time limit 1,402 974Total of losses carried forward which have generated recognized deferred tax assets 1,417 1,037Tax losses carried forward for which no deferred tax assets were recognized 5,203 6,050Total of tax losses carried forward 6,620 7,087The tax losses carried forward of \u20ac\ue61f1,417\ue61fmillion (\u20ac1,037 million in 2021) have generated deferred tax assets for \u20ac\ue61f374\ue61fmillion (\u20ac263 million in 2021). The increase of tax losses carried forward which have generated deferred tax assets, is largely due to the revised forecast for the holding company in France.Presentation of the tax effect relating to each item of\ue61fother\ue61fcomprehensive\ue61fincomeNote: the below table presents the total other comprehensive income items for the aggregate of the shares of Solvay and the non-controlling interests.\ue61f 2022 \ue61fIn \u20ac million Before-tax Tax expense Net of tax amount(-)/incomeamountEffective portion of gains and losses on hedging instruments in a cash \ufb02ow hedge 304 -7 297Recycling to the income statement -225 \ue61d -225Gains and losses on hedging instruments in a cash \ufb02ow hedge (see note F32) 79 -7 72Currency translation differences arising during the year 285 \ue61d 285Recycling of currency translations differences relating to foreign operations disposed of\ue61d in -1 \ue61d -1the\ue61dyearOther movement of currency translation differences (NCI) relating to foreign operations 0 \ue61f 0Currency translation differences - Subsidiaries and joint operations 284 \ue61f 284Share of other comprehensive income of associates and joint ventures 22 \ue61f 22Recyclable components 385 -7 377Gains and losses on equity instruments measured at fair value through other comprehensive -25 6 -19incomeRemeasurements of the net defined benefit liability (see notes F7 & F31) 155 -66 89Non-recyclable components 130 -60 70Other comprehensive income/(loss) 515 -67 447\ue61f 2021 \ue61fIn \u20ac million Before-tax Tax expense Net of tax amount(-)/incomeamountEffective portion of gains and losses on hedging instruments in a cash \ufb02ow hedge 71 5 76Recycling to the income statement -87 \ue61d -87Gains and losses on hedging instruments in a cash \ufb02ow hedge (see note F32) -17 5 -11Currency translation differences arising during the year 432 \ue61d 432Recycling of currency translations differences relating to foreign operations disposed of\ue61din the 47 \ue61d 47yearOther movement of currency translation differences (NCI) relating to foreign operations 8 \ue61f 8Currency translation differences - Subsidiaries and joint operations 487 \ue61f 487Share of other comprehensive income of associates and joint ventures 29 \ue61f 29Recyclable components 500 5 505Gains and losses on equity instruments measured at fair value through other comprehensive 33 -8 25incomeRemeasurements of the net defined benefit liability (see notes F7 & F31) 562 -75 487Non-recyclable components 594 -83 512Other comprehensive income/(loss) 1,094 -78 1,017The \u20ac33 million gain on equity instruments measured at fair value through other comprehensive income mainly relates to a Solvay Ventures investment that was listed in Q4 of 2021.",
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"pp-value-63-2": {
"value": "NOTE\ue61fF8 DISCONTINUED OPERATIONS Accounting policyA discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale (see note F27 Assets held for sale), and which: \u00b7 represents a separate major line of business or geographical area of operations; \u00b7 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u00b7 is a subsidiary acquired exclusively with a view to resale.A component of the Group consists of operations and cash \ufb02ows, which can be clearly distinguished operationally and for financial reporting purposes, from the rest of the Group.In the consolidated statement of comprehensive income, the consolidated statement of cash \ufb02ows, and disclosures, discontinued operations are re-presented for prior periods presented.In 2021 the discontinued operation concerns post-closing warranties related to the disposal of the Pharma business.NOTE\ue61fF18 CASH FLOW FROM DISCONTINUED OPERATIONSThe 2021 cash \ufb02ow from discontinued operations amounts to \u20ac(12) million related to the Pharma business and Polyamides. ",
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"concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-64-3": {
"value": "Accounting policyA discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale (see note F27 Assets held for sale), and which: \u00b7 represents a separate major line of business or geographical area of operations; \u00b7 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u00b7 is a subsidiary acquired exclusively with a view to resale.A component of the Group consists of operations and cash \ufb02ows, which can be clearly distinguished operationally and for financial reporting purposes, from the rest of the Group.In the consolidated statement of comprehensive income, the consolidated statement of cash \ufb02ows, and disclosures, discontinued operations are re-presented for prior periods presented.In 2021 the discontinued operation concerns post-closing warranties related to the disposal of the Pharma business.NOTE\ue61fF27 ASSETS\ue61eHELD FOR SALEAccounting policyA disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit.Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to re\ufb02ect the new classification of a non-current asset (or disposal group) as held for sale.At the end of 2022 and 2021 there are no assets classified as held for sale. ",
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"pp-value-64-5": {
"value": "Accounting policyA discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale (see note F27 Assets held for sale), and which: \u00b7 represents a separate major line of business or geographical area of operations; \u00b7 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u00b7 is a subsidiary acquired exclusively with a view to resale.A component of the Group consists of operations and cash \ufb02ows, which can be clearly distinguished operationally and for financial reporting purposes, from the rest of the Group.In the consolidated statement of comprehensive income, the consolidated statement of cash \ufb02ows, and disclosures, discontinued operations are re-presented for prior periods presented.",
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"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-64-6": {
"value": "Accounting policyA discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale (see note F27 Assets held for sale), and which: \u00b7 represents a separate major line of business or geographical area of operations; \u00b7 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u00b7 is a subsidiary acquired exclusively with a view to resale.A component of the Group consists of operations and cash \ufb02ows, which can be clearly distinguished operationally and for financial reporting purposes, from the rest of the Group.In the consolidated statement of comprehensive income, the consolidated statement of cash \ufb02ows, and disclosures, discontinued operations are re-presented for prior periods presented.NOTE\ue61fF27 ASSETS\ue61eHELD FOR SALEAccounting policyA disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit.Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to re\ufb02ect the new classification of a non-current asset (or disposal group) as held for sale.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
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"pp-value-66-2": {
"value": "NOTE\ue61fF9EARNINGS PER SHAREAccounting policyThe basic earnings per share are obtained by dividing profit for the year by the weighted average number of ordinary shares outstanding during the reporting period. The weighted average number of ordinary shares excludes the treasury shares held by the Group over the reporting period.The diluted earnings per share are obtained by dividing profit for the year, adjusted for the effects of dilutive potential ordinary shares, by the weighted average number of ordinary shares, also adjusted by the number of dilutive potential ordinary shares attached to the issuance of share options. The number of dilutive potential ordinary shares is calculated for the weighted average number of share options outstanding during the reporting period as the difference between the average market price of ordinary shares during the reporting period and the exercise price of the share option. Share options have a dilutive effect only when the average market price is above the exercise price (share options are \u201cin the money\u201d).For the purpose of calculating diluted earnings per share, there were no adjusting elements to the profit for the year (Solvay share).Basic and diluted amounts per share for discontinued operations are presented in the consolidated income statement.Number of shares (in units) 2022 2021Weighted average number of ordinary shares (basic) 103,744,461 103,527,423Dilution effect 398,745 260,419Weighted average number of ordinary shares (diluted) 104,143,206 103,787,8422022 2021Basic Diluted Basic DilutedProfit/(loss) for the year (Solvay share) including discontinued operations (in \u20ac 1,905,416 1,905,416 947,738 947,738thousands)Profit/(loss) for the year (Solvay share) excluding discontinued operations (in \u20ac 1,905,150 1,905,150 943,177 943,177thousands)Earnings per share (including discontinued operations) (in \u20ac) 18.37 18.30 9.15 9.13Earnings per share (excluding discontinued operations) (in \u20ac) 18.36 18.29 9.11 9.09Full data per share, including dividend per share, can be found in the Business Review section.The average market price during 2022 was \u20ac\ue61f91.15 per share (2021: \u20ac\ue61f106.01 per share). The following share options were out of the money, and therefore antidilutive for the period presented, but could potentially dilute basic earnings per share in the future (see note\ue61fF30 Share-based payments):Antidilutive share options per plans Date Exercise Number of share Number of share grantedprice (in \u20ac)options grantedoptions outstanding2015 February 25, 2015 114.51 346,617 332,4092017 February 23, 2017 111.27 316,935 308,4502018 - 1 February 27, 2018 113.11 400,704 391,2802018 - 2 July 30, 2018 108.38 72,078 72,0782019 February 27, 2019 97.05 438,107 429,1032020 February 26, 2020 95.80 405,670 395,1642021 February 24, 2021 95.58 265,433 259,001Total \ue61f 2,245,544 2,187,485",
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"value": "Accounting policyThe basic earnings per share are obtained by dividing profit for the year by the weighted average number of ordinary shares outstanding during the reporting period. The weighted average number of ordinary shares excludes the treasury shares held by the Group over the reporting period.The diluted earnings per share are obtained by dividing profit for the year, adjusted for the effects of dilutive potential ordinary shares, by the weighted average number of ordinary shares, also adjusted by the number of dilutive potential ordinary shares attached to the issuance of share options. The number of dilutive potential ordinary shares is calculated for the weighted average number of share options outstanding during the reporting period as the difference between the average market price of ordinary shares during the reporting period and the exercise price of the share option. Share options have a dilutive effect only when the average market price is above the exercise price (share options are \u201cin the money\u201d).For the purpose of calculating diluted earnings per share, there were no adjusting elements to the profit for the year (Solvay share).Basic and diluted amounts per share for discontinued operations are presented in the consolidated income statement.",
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"pp-value-75-3": {
"value": "Currency translation differencesAccounting policyFor the purpose of presenting consolidated financial statements at the end of each reporting period, the assets and liabilities of the Group\u2019s foreign operations are expressed in euros using closing rates. Income and expense items are translated at the average exchange rates for the period except when the impact of applying the average rate is materially different from applying the spot rate at the respective transactions\u2019 dates, in which case the latter is applied. Exchange differences arising, if any, are recognized in other comprehensive income as \u201ccurrency translation differences\u201d.Currency translation differences are reclassified from equity to profit or loss, on: \u00b7 a disposal of the Group\u2019s entire interest in a foreign operation, or a partial disposal involving loss of control over a subsidiary that includes a foreign operation. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss. Any exchange differences that have previously been attributed to non-controlling interests are derecognized, but they are not reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation, when the retained interest is a financial asset. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint venture or an associate that includes a foreign operation and that continues to be accounted for as a joint venture or an associate. In this case, a proportionate share of the accumulated exchange differences is reclassified to profit or loss. In case of a partial disposal of a subsidiary (i.e. No loss of control) that includes a foreign operation, the proportionate share of accumulated exchange differences is reattributed to non-controlling interests and is not recognized in profit or loss. In case of (a) a capital decrease of a subsidiary without loss of control, or (b) a capital decrease of an equity method investee or a joint operation without modification of the share of equity interest held in that investee, then no accumulated exchange differences are reclassified from equity to profit or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated into the Group\u2019s presentation currency at the closing rate.The total currency translation gain amounts to \u20ac\ue61f304 million in 2022, and only relates to the Group\u2019s share (2021: gain of \u20ac\ue61f508\ue61fmillion). They are linked to the revaluation of the US dollar (\u20ac260 million) (2021: \u20ac331 million), Chinese Renminbi (\u20ac(40) million) (2021: \u20ac83 million), the Brazilian Real (\u20ac38 million) (2021: \u20ac11 million), the Russian ruble (\u20ac22 million) (2021: \u20ac21 million), compared to the Euro.NOTE\ue61fF28EQUITYReservesThe reserves include: \u00b7 treasury shares; \u00b7 perpetual hybrid bonds that qualify as equity absent any unavoidable contractual obligation to repay the principal and interest of the perpetual hybrid bonds (no maturity, interest is payable annually but can be deferred indefinitely at the issuer\u2019s discretion); \u00b7 retained earnings; \u00b7 currency translation differences from the consolidation process relating to the translation of the financial statements of foreign operations prepared in a non-euro functional currency to the euro presentation currency; \u00b7 the impacts of the fair value remeasurement of equity instruments measured at fair value through other comprehensive income; \u00b7 the impacts of the fair value remeasurement of financial instruments documented as hedging instruments in cash \ufb02ow hedges; \u00b7 actuarial gains and losses related to defined benefit plans.NUMBER OF SHARES (IN UNITS)December 31, 2022 December 31, 2021Shares issued and fully paid 105,876,416 105,876,416Treasury shares held 2,107,752 2,236,739The treasury shares held by the Group have been deducted from consolidated shareholders\u2019 equity. Perpetual hybrid bondsTo strengthen its capital structure, Solvay issued undated deeply subordinated perpetual bonds (\u201cperpetual hybrid bonds\u201d) of \u20ac1.8 billion as per the following table: In \u20ac million Issuance date Nominal value % Annual coupon First call / reset dateHybrid bond NC10 November 12, 2013 500 5.425% 27 November 12, 2023Hybrid bond NC8.5 December 2, 2015 500 5.869% 29 June 3, 2024Hybrid bond NC5.25* December 4, 2018 300 4.250% 13 March 4, 2024Hybrid bond NC5.5* September 2, 2020 500 2.500% 13 March 2, 2026* with 3 months call option at parAll perpetual hybrid bonds are classified as equity absent any unavoidable contractual obligation to repay the principal and interest of the perpetual hybrid bonds, specifically: \u00b7 No maturity, yet the issuer has a call option at every reset date to redeem the instrument; \u00b7 At the option of the issuer, interest payments can be deferred indefinitely.The coupons related to the perpetual hybrid bonds are recognized as equity transactions and are deducted from equity upon declaration (see consolidated statement of changes in equity). These coupons amount to\ue61f\u20ac82\ue61fmillion in 2022 (\u20ac75 million in 2021).\ue61fShould Solvay have elected not to pay any interest to the perpetual hybrid bond holders, then any payment of dividends to the ordinary shareholders or repayment of ordinary shares would trigger a contractual obligation to pay previously unpaid interests to the perpetual hybrid bond holders.\ue61fTax impacts related to the perpetual hybrid bonds are recognized in profit or loss.",
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"value": "Currency translation differencesAccounting policyFor the purpose of presenting consolidated financial statements at the end of each reporting period, the assets and liabilities of the Group\u2019s foreign operations are expressed in euros using closing rates. Income and expense items are translated at the average exchange rates for the period except when the impact of applying the average rate is materially different from applying the spot rate at the respective transactions\u2019 dates, in which case the latter is applied. Exchange differences arising, if any, are recognized in other comprehensive income as \u201ccurrency translation differences\u201d.Currency translation differences are reclassified from equity to profit or loss, on: \u00b7 a disposal of the Group\u2019s entire interest in a foreign operation, or a partial disposal involving loss of control over a subsidiary that includes a foreign operation. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss. Any exchange differences that have previously been attributed to non-controlling interests are derecognized, but they are not reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation, when the retained interest is a financial asset. In this case, all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss; \u00b7 a partial disposal of an interest in a joint venture or an associate that includes a foreign operation and that continues to be accounted for as a joint venture or an associate. In this case, a proportionate share of the accumulated exchange differences is reclassified to profit or loss. In case of a partial disposal of a subsidiary (i.e. No loss of control) that includes a foreign operation, the proportionate share of accumulated exchange differences is reattributed to non-controlling interests and is not recognized in profit or loss. In case of (a) a capital decrease of a subsidiary without loss of control, or (b) a capital decrease of an equity method investee or a joint operation without modification of the share of equity interest held in that investee, then no accumulated exchange differences are reclassified from equity to profit or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated into the Group\u2019s presentation currency at the closing rate.The total currency translation gain amounts to \u20ac\ue61f304 million in 2022, and only relates to the Group\u2019s share (2021: gain of \u20ac\ue61f508\ue61fmillion). They are linked to the revaluation of the US dollar (\u20ac260 million) (2021: \u20ac331 million), Chinese Renminbi (\u20ac(40) million) (2021: \u20ac83 million), the Brazilian Real (\u20ac38 million) (2021: \u20ac11 million), the Russian ruble (\u20ac22 million) (2021: \u20ac21 million), compared to the Euro.NOTE\ue61fF28EQUITYShare capitalOrdinary shares are classified as equity.Incremental costs directly attributable to the issuance of new share capital are directly recognized in equity as a deduction, net of tax, from the equity issuance proceeds.ReservesThe reserves include: \u00b7 treasury shares; \u00b7 perpetual hybrid bonds that qualify as equity absent any unavoidable contractual obligation to repay the principal and interest of the perpetual hybrid bonds (no maturity, interest is payable annually but can be deferred indefinitely at the issuer\u2019s discretion); \u00b7 retained earnings; \u00b7 currency translation differences from the consolidation process relating to the translation of the financial statements of foreign operations prepared in a non-euro functional currency to the euro presentation currency; \u00b7 the impacts of the fair value remeasurement of equity instruments measured at fair value through other comprehensive income; \u00b7 the impacts of the fair value remeasurement of financial instruments documented as hedging instruments in cash \ufb02ow hedges; \u00b7 actuarial gains and losses related to defined benefit plans.Non-controlling interestsThose represent the share of non-controlling interests in the net assets and comprehensive income of subsidiaries of the Group, and corresponds to the interests in subsidiaries that are not held by the Company or its subsidiaries.NUMBER OF SHARES (IN UNITS)December 31, 2022 December 31, 2021Shares issued and fully paid 105,876,416 105,876,416Treasury shares held 2,107,752 2,236,739The treasury shares held by the Group have been deducted from consolidated shareholders\u2019 equity. Perpetual hybrid bondsTo strengthen its capital structure, Solvay issued undated deeply subordinated perpetual bonds (\u201cperpetual hybrid bonds\u201d) of \u20ac1.8 billion as per the following table: In \u20ac million Issuance date Nominal value % Annual coupon First call / reset dateHybrid bond NC10 November 12, 2013 500 5.425% 27 November 12, 2023Hybrid bond NC8.5 December 2, 2015 500 5.869% 29 June 3, 2024Hybrid bond NC5.25* December 4, 2018 300 4.250% 13 March 4, 2024Hybrid bond NC5.5* September 2, 2020 500 2.500% 13 March 2, 2026* with 3 months call option at parAll perpetual hybrid bonds are classified as equity absent any unavoidable contractual obligation to repay the principal and interest of the perpetual hybrid bonds, specifically: \u00b7 No maturity, yet the issuer has a call option at every reset date to redeem the instrument; \u00b7 At the option of the issuer, interest payments can be deferred indefinitely.The coupons related to the perpetual hybrid bonds are recognized as equity transactions and are deducted from equity upon declaration (see consolidated statement of changes in equity). These coupons amount to\ue61f\u20ac82\ue61fmillion in 2022 (\u20ac75 million in 2021).\ue61fShould Solvay have elected not to pay any interest to the perpetual hybrid bond holders, then any payment of dividends to the ordinary shareholders or repayment of ordinary shares would trigger a contractual obligation to pay previously unpaid interests to the perpetual hybrid bond holders.\ue61fTax impacts related to the perpetual hybrid bonds are recognized in profit or loss.",
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"value": "NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS(CONTINUING AND DISCONTINUED OPERATIONS)NOTE\ue61fF11 DEPRECIATION, AMORTIZATION AND\ue61eIMPAIRMENTSIn 2022 total depreciation, amortization and impairment losses (reversal) amount to \u20ac923 million (\u20ac849 million in 2021), of which: Straight-line depreciation and amortization of \u20ac\ue61f948\ue61fmillion (\u20ac906\ue61fmillion in 2021) for continuing operations recorded in: \u00b7 Cost of goods sold \u20ac\ue61f604\ue61fmillion (\u20ac564\ue61fmillion in 2021), \u00b7 Administrative costs \u20ac\ue61f85 million (\u20ac82 million in 2021), \u00b7 Research and development costs \u20ac\ue61f96\ue61fmillion (\u20ac100\ue61fmillion in 2021), \u00b7 Other \u20ac\ue61f163\ue61fmillion (\u20ac160\ue61fmillion in 2021), including \u20ac\ue61f146\ue61fmillion (\u20ac147\ue61fmillion in 2021) for PPA amortization (see note\ue61fF4 Other operating gains and losses);In 2022, the impairments include the impairment reversal of Special Chem assets for \u20ac37 million (see note F24 Impairment) and impairment losses of other non-performing assets for \u20ac(9) million.NOTE\ue61fF12 OTHER NON OPERATING AND\ue61eNON CASH\ue61eITEMSThe other non-operating and non-cash items for 2022 of \u20ac43 million (\u20ac(113) million in 2021) relate mainly to non-cash capital gains and other results for M&A deals. NOTE\ue61fF13 INCOME TAXES IN THE STATEMENT OF CASH FLOWSIncome tax expense in 2022 amounts to \u20ac217 million (\u20ac110 million in 2021), all of which was from continuing operations. Income tax paid in 2022 amounts to \u20ac305 million (\u20ac233 million in 2021), all of which was from continuing operations. The income tax paid has increased compared to previous years due to increased profits mainly in China, the US and Italy.The major components of Income taxes are discussed in note F7 Income taxes in income statement and statement of financial position. NOTE\ue61fF14 CHANGES IN WORKING CAPITALIn \u20ac million 2022 2021Inventories -300 -427Trade receivables -193 -459Trade payables 115 775Other receivables/payables -198 20Changes in working capital -576 -92Of which discontinued operations 0 -5Changes in working capital in 2022 result mainly from sales growth despite working capital disciplines and from the non-cash impact of the change in accounting treatment of the portfolio of CO emission rights. 2NOTE\ue61fF15 ADDITIONS, REVERSALS AND USE OF PROVISIONSAdditions and reversals on provisions in 2022 amount to \u20ac336 million (\u20ac464 million in 2021) and concern mainly employee benefits \u20ac63 million (\u20ac\ue61f46\ue61fmillion in 2021), restructuring \u20ac32 million (\u20ac184 million in 2021) and environment for \u20ac177 million (\u20ac90 million in 2021).Use of provisions in 2022 amount to \u20ac(328) million (\u20ac(303) million in 2021) and concerns mainly employee benefits \u20ac(101) million (\u20ac(89) million in 2021), environment \u20ac(90) million (\u20ac(61) million in 2021) and restructuring \u20ac(106) million (\u20ac(118) million in 2021).In 2022, use of provisions for additional voluntary contributions in pension plans relates to \u20ac(155) million in Germany.See note F31 Provisions for more information.NOTE\ue61fF16 CASH FLOWS FROM INVESTING ACTIVITIES \u2013 ACQUISITION/DISPOSAL OF\ue61eASSETS\ue61eAND\ue61eINVESTMENTS2022 - In \u20ac million Acquisitions Disposals TotalInvestments -14 95 81Subsidiaries \ue61f 95 95Other -14 \ue61f -14Property, plant and equipment/Intangible assets -909 21 -888Total -923 116 -8072021 - In \u20ac million Acquisitions Disposals TotalTotal investments -44 169 125Subsidiaries -22 169 147Other -22 \ue61f -22Property, plant and equipment/Intangible assets -637 30 -606Total -681 200 -4812022The other acquisitions (\u20ac\ue61f(14)\ue61fmillion) mainly relate to several investments of the Corporate Venturing portfolio (New Business Development). The disposal of subsidiaries (\u20ac95 million) mainly relates to the proceeds after taxes related to the final price adjustments for the disposal of the Barium Strontium business and the joint venture with Chemicals Products Corporation, the Polyamide business and the disposal of the Novecare Alkoxylation plant in Singapore.The acquisition of property, plant and equipment and intangible assets (\u20ac(909) million) includes the following main projects: \u00b7 Specialty Polymers: Polyvinylidene Fluoride (PVDF) capacity increase in Tavaux (France) and Changshu (PRC) \u00b7 Soda Ash & Derivatives: Soda ash capacity increase in Green River (USA) \u00b7 Novecare: internalization of IRIS intermediate chemical production in Melle (France) \u00b7 Technology Solutions: Aldoxime capacity increase in Mount Pleasant (USA) \u00b7 Aroma performance: internalization of natural vanillin purification in Saint Fons (France) \u00b7 Specialty Polymers: DCDPS monomer capacity increase in Augusta (USA) \u00b7 Specialty Polymers: Udel polysulfone capacity increase in Marietta (USA) \u00b7 Soda Ash & Derivatives: methane emissions abatement in Green River (USA)2021The acquisition of subsidiaries (\u20ac\ue61f(22)\ue61fmillion) mainly relates to the acquisition of a seed coating business from Bayer.Other acquisitions mainly relate to the investment in Shinsol Advanced Chemicals Corporation and in equity instruments measured at fair value.The disposal of subsidiaries (\u20ac169 million) mainly relates to the proceeds after taxes from: \u00b7 the sodium chlorate business line and related assets in Povoa, Portugal; \u00b7 the \ufb02uorine chemicals assets in Onsan, South Korea; \u00b7 the sodium percarbonate business line and related assets in Bad H\u00f6nningen, Germany; \u00b7 the Barium Strontium business and the joint venture with Chemical Products Corporation (CPC); \u00b7 the Process Materials business; \u00b7 the amphoterics surfactants activities; and \u00b7 the surfactants and anti-oxidants business in Rasal, India.The acquisition of property, plant and equipment and intangible assets (\u20ac(636) million) relates to various projects: \u00b7 Soda Ash: coal energy phase-out in Green River (USA); \u00b7 Aroma performance: internalization of natural vanillin purification in Saint Fons (France); \u00b7 Specialty Polymers: water treatment in Spinetta (Italy); \u00b7 Specialty Polymers: Tecno\ufb02on capacity expansion in Spinetta (Italy); \u00b7 Specialty Polymers: Polyvinylidene Fluoride (PVDF) capacity increase in Changshu (PRC); \u00b7 Composite Materials: new production unit dedicated to thermoplastic composites in Piedmont, South Carolina (USA); \u00b7 Soda Ash & Derivatives: new production unit dedicated to Bicarbonate in Devnya (Bulgaria); \u00b7 Specialty Polymers: Polyvinylidene Fluoride (PVDF) capacity increase in Tavaux (France).NOTE\ue61fF17 OTHER CASH FLOWS FROM FINANCING ACTIVITIESThe \u20ac112 million of other cash \ufb02ows from financing activities in 2022 mainly relate to margin calls on hedging instruments as part of Energy Services\u2019 activities for \u20ac128 million.The \u20ac50 million of other cash \ufb02ows from financing activities in 2021 mainly relate to margin calls on hedging instruments as part of Energy Services\u2019 activities for \u20ac108 million and to the payment of the EBRD option (\u20ac(52) million) to purchase the EBRD shares in the Solvay holding of the RusVinyl Joint Venture.For trading in futures of different commodities (CO, power, gas, coal), Energy Services uses brokers. These deals are subject to margin calls. To cover the 2credit risk of the counterparty, brokers pay a margin call to Solvay in case the instrument is in the money for Solvay. If the instrument is out of the money for Solvay, Solvay pays a margin call to the brokers. The margin calls are presented as part of financial debt (see note F33 Net indebtedness). Cash \ufb02ows from margin calls are recognized as financing cash \ufb02ows that \ufb02uctuate with the fair value of the instrument. The actual settlement of these commodity derivatives is net of margin calls and the gross amount (including margin calls that are reclassified from financing cash \ufb02ows) is recognized in operating cash \ufb02ows.NOTE\ue61fF18 CASH FLOW FROM DISCONTINUED OPERATIONSThe 2021 cash \ufb02ow from discontinued operations amounts to \u20ac(12) million related to the Pharma business and Polyamides. ",
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"value": "NOTE\ue61fF14 CHANGES IN WORKING CAPITALIn \u20ac million 2022 2021Inventories -300 -427Trade receivables -193 -459Trade payables 115 775Other receivables/payables -198 20Changes in working capital -576 -92Of which discontinued operations 0 -5Changes in working capital in 2022 result mainly from sales growth despite working capital disciplines and from the non-cash impact of the change in accounting treatment of the portfolio of CO emission rights. 2NOTE\ue61fF34OTHER LIABILITIES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021Wages and benefits debts 371 303VAT and other taxes 184 153Social security 51 58Financial instruments - operational 676 1,350Insurance premiums 15 19Advances from customers 97 91Other 106 76Other current liabilities 1,499 2,051Financial instruments \u2013 operational include held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
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"value": "NOTE\ue61fF14 CHANGES IN WORKING CAPITALIn \u20ac million 2022 2021Inventories -300 -427Trade receivables -193 -459Trade payables 115 775Other receivables/payables -198 20Changes in working capital -576 -92Of which discontinued operations 0 -5Changes in working capital in 2022 result mainly from sales growth despite working capital disciplines and from the non-cash impact of the change in accounting treatment of the portfolio of CO emission rights. 2NOTE\ue61fF26 OTHER RECEIVABLES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021VAT and other taxes 398 321Advances to suppliers 149 189Financial instruments \u2013 operational 929 1,326Insurance premiums 31 38Loan receivables 43 28Other 78 102Other current receivables 1,628 2,004Financial instruments \u2013 operational includes held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"value": "NOTE\ue61fF14 CHANGES IN WORKING CAPITALIn \u20ac million 2022 2021Inventories -300 -427Trade receivables -193 -459Trade payables 115 775Other receivables/payables -198 20Changes in working capital -576 -92Of which discontinued operations 0 -5Changes in working capital in 2022 result mainly from sales growth despite working capital disciplines and from the non-cash impact of the change in accounting treatment of the portfolio of CO emission rights. 2NOTE\ue61fF26 OTHER RECEIVABLES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021VAT and other taxes 398 321Advances to suppliers 149 189Financial instruments \u2013 operational 929 1,326Insurance premiums 31 38Loan receivables 43 28Other 78 102Other current receivables 1,628 2,004Financial instruments \u2013 operational includes held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"language": "en",
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"pp-value-82-3": {
"value": "NOTE\ue61fF15 ADDITIONS, REVERSALS AND USE OF PROVISIONSAdditions and reversals on provisions in 2022 amount to \u20ac336 million (\u20ac464 million in 2021) and concern mainly employee benefits \u20ac63 million (\u20ac\ue61f46\ue61fmillion in 2021), restructuring \u20ac32 million (\u20ac184 million in 2021) and environment for \u20ac177 million (\u20ac90 million in 2021).Use of provisions in 2022 amount to \u20ac(328) million (\u20ac(303) million in 2021) and concerns mainly employee benefits \u20ac(101) million (\u20ac(89) million in 2021), environment \u20ac(90) million (\u20ac(61) million in 2021) and restructuring \u20ac(106) million (\u20ac(118) million in 2021).In 2022, use of provisions for additional voluntary contributions in pension plans relates to \u20ac(155) million in Germany.See note F31 Provisions for more information.NOTE F31PROVISIONSIn \u20ac million Employee benefits Restructuring Environment Litigation Other TotalDecember 31, 2021 1,574 191 648 62 126 2,600Additions 63 32 194 54 33 377Reversals of unused amounts 0 0 -17 -10 -13 -41Uses -101 -106 -90 -8 -24 -328Use of provisions for additional voluntary contri--155 -155butions (pension plans)Increase/decrease through discounting 3 0 -42 1 0 -39Remeasurements -351 0 0 0 0 -351Currency translation differences 16 2 13 3 1 34Acquisitions and changes in consolidation scope 0 0 0 0 0 0Disposals 0 0 0 0 0 0Other 8 0 -3 -4 0 0December 31, 2022 1,057 119 702 97 123 2,097Of which current provisions 0 81 108 52 57 297The provisions decreased by \u20ac(503) million in 2022, of which \u20ac(517) million for Employee benefits, \u20ac(72) million for Restructuring, partially offset by an increase of \u20ac54 million for Environment and \u20ac35 million for Litigation. Employees benefit includes other long-term benefits and termination benefits.For employee benefits, the deleveraging of \u20ac(517) million is explained as follows: \u00b7 payments (uses) for \u20ac(101) million, and voluntary contributions of \u20ac(155) million to pension funds to deleverage and de-risk; \u00b7 net new liabilities (additions and reversals) for \u20ac63 million; \u00b7 remeasurements, resulting from the changes in assumptions related to the gross liability for \u20ac(1,067) million (mainly due to changes in discount rates); \u00b7 return on plan assets increasing the liability by \u20ac631 million, of which \u20ac(85) million in deduction of \u201cIncrease through discounting\u201d and \u20ac716 million in increase of \u201cRemeasurements\u201d for the assets return exceeding the discount rate, which excludes the impact of remeasurements on the plan assets surplus (\u20ac(195) million); \u00b7 net increase through discounting for \u20ac3 million for the unwinding of the discount rate on the gross liability; \u00b7 other increases in the employee benefit obligations for \u20ac109 million mainly due to the reclassification of the amounts recognized in asset surplus and currency translation differences. Restructuring, environmental and litigation - see note F31.B Provisions other than employee benefits.The movements in Other provisions mainly relate to post-closing adjustments resulting from M&A warranties as well as indemnities for environmental remediation.Management expects provisions (other than employee benefits) to be used (cash outlays) as follows:In \u20ac millionup to 5 years between 5 and 10 years beyond 10 years TotalTotal provisions for environment 361 96 245 702Total provisions for litigation 92 5 97Total provisions for restructuring and other 226 16 241December 31, 2022 679 116 245 1,0401. F31.A. Provisions for employee bene\ue782tsAccounting policyGeneralThe Group\u2019s employees are offered various post-employment benefits, other long-term employee benefits, and termination benefits as a result of legislation applicable in certain countries, and contractual agreements entered into by the Group with its employees or constructive obligations.The post-employment benefits are classified as defined contribution or defined benefit plans.Defined contribution plansDefined contribution plans involve the payment of fixed contributions to a separate entity, and release the employer from any subsequent obligation, as this separate entity is solely responsible for paying the amounts due to the employee. The expense is recognized when an employee has rendered services to the Group during the period.Defined benefit plansDefined benefit plans concern all plans other than defined contribution plans, and include: \u00b7 post-employment benefits: pension plans, other post-employment obligations and supplemental benefits such as post-employment medical plans.Taking into account projected final salaries on an individual basis, post-employment benefits are measured by applying a method (projected unit credit method) using assumptions involving discount rate, life expectancy, turnover, wages, annuity revaluation and medical cost in\ufb02ation. The assumptions specific to each plan take into account the local economic and demographic contexts.The discount rates are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligation.The amount recognized under post-employment obligations corresponds to the difference between the present value of future obligations and the fair value of the plan assets funding the plan, if any. If this calculation gives rise to a deficit, an obligation is recognized in liabilities. Otherwise, a net asset limited to the lower of the surplus in the defined benefit plan and the present value of any future plan refunds or any reduction in future contributions to the plan is recognized. Therefore the amount at which such an asset is recognized in the statement of financial position may be subject to a ceiling.The defined benefit cost consists of service cost and net interest expense (based on discount rate) on the net liability or asset, both recognized in profit or loss, and remeasurements of the net liability or asset, recognized in other comprehensive income.Service cost consists of current service cost, past service cost resulting from plan amendments or curtailments and settlement gains or losses.The interest expenses arising from the reverse discounting of the benefit obligations, the financial income on plan assets (determined by multiplying the fair value of the plan assets by the discount rate) as well as interest on the effect of the asset ceiling are recognized on a net basis in the net financial charges (cost of discounting of provisions).Remeasurements of the net liability or asset consist of: \u00b7 actuarial gains and losses on the benefit obligations arising from experience adjustments and/or changes in actuarial assumptions (including the effect of changes in the discount rate) recognized in other comprehensive income; \u00b7 Changes as a consequence of plan amendments, recognized in profit or loss; \u00b7 the return on plan assets (excluding amounts in net interest) and changes in the limitation of the net asset recognized.The actuarial calculations of the main post-employment obligations and other long-term benefits are performed by independent actuaries.OVERVIEW In \u20ac million December 31, 2022 December 31, 2021Post-employment benefits 873 1,371Other long-term benefits 136 153Termination benefits 49 50Total employee benefits 1,057 1,574POST-EMPLOYMENT BENEFITSA. Defined contribution plansFor defined contribution plans, Solvay pays contributions to publicly or privately administered pension funds or insurance companies. For 2022, the expense amounts to \u20ac59 million compared to \u20ac56 million for 2021. B. Defined benefit plansDefined benefit plans can be either funded via outside pension funds or insurance companies (\u201cfunded plans\u201d) or financed within the Group (\u201cunfunded plans\u201d). Unfunded plans have no plan assets dedicated to them. The net liability results from the net of the provisions and the asset plan surplus.In \u20ac million December 31, 2022 December 31, 2021Provisions 873 1,371Asset plan surplus -62 -248Net liability 810 1,123\ue61f \ue61f \ue61f\ue61f 2021 2021Operational expense 44 19Finance expense 14 13The operating expense includes current service cost for \u20ac38 million (\u20ac43 million in 2021) (see also B.3.). B.1. Management of risksOver recent years, the Group has reduced its exposure to defined benefit plan obligations stemming from future services by converting existing plans into pension plans with a lower risk profile (hybrid plans, cash balance plans and defined contribution plans) or by closing them to new entrants.Solvay continuously monitors its risk exposure, focusing on the following risks:Asset volatilityEquity instruments, even though expected to outperform corporate bonds in the long-term, create volatility and risk in the short-term. To mitigate this risk, the allocation to equity instruments is monitored using Assets and Liabilities Management techniques, to ensure it remains appropriate given the respective schemes\u2019 and Group\u2019s long term objectives.Changes in bond yieldsA decrease in corporate bond yields will increase the carrying amount of the plans\u2019 liabilities. For funded schemes this impact will be partially offset by an increase in the fair value of the plan assets.Corporate bond yields are highly dependent on global and local market situations, the decisions of central banks and the political situation. Events\ue61fthat are currently impacting the financial markets are: \u00b7 the war in Ukraine and its geopolitical consequences; \u00b7 high in\ufb02ation due to increasing energy prices; \u00b7 quantitative tightening applied by central banks to\ue61fcombat\ue61frising in\ufb02ation.Consequently, yields in the major currency zones (Eurozone, the UK, and the US) have increased compared to 2021 (see Actuarial assumptions used in determining the liability).\ue61fThe result is a\ue61fdecrease in the Group's defined benefit obligations in 2022.\ue61fIn\ufb02ation riskThe defined benefit obligations are linked to in\ufb02ation, and\ue61fas a result,\ue61fhigher in\ufb02ation will lead to\ue61fan increase in the benefit obligation\ue61f(although, in most cases, caps on the level of in\ufb02ationary increases are in place to protect against extreme in\ufb02ation). A\ue61flimited\ue61fpart of the assets\ue61fare either unaffected by or only partially correlated with in\ufb02ation, meaning that an increase in in\ufb02ation will also increase the plans\u2019 net liabilities.The in\ufb02ation rate in each country is based on the Global Economic Consensus Forecast (GCF) with the exception of the UK, where the information is derived from the Bank of England. Long-term in\ufb02ation assumptions have increased slightly in the Eurozone in comparison to 2021. In the UK, the outlook for the retail price index and consumer price index remains unchanged from 2021. The long-term in\ufb02ation rate in the US, which is also based on the\ue61fGCF, remains unchanged compared to 2021. (See\ue61fActuarial assumptions used in determining the liability)Life expectancyThe majority of the schemes\u2019 obligations are to provide benefits for the life of the member. Increases in life expectancy will therefore increase the plans\u2019 liabilities.Regulatory riskEspecially with respect to funded plans, the Group is exposed to the risk of external funding following regulatory constraints. This should not impact the defined benefit obligation but could expose the Group to a potential significant cash outlay.B.2. Description of obligationsThe provisions have been set up to cover post-employment benefits granted by most Group companies in line, either with local rules and /or with established practices, which generate constructive obligations.The largest post-employment plans in 2022 are in the United Kingdom, the United States, France, Germany and Belgium. These five countries represent 94% of the total defined benefit obligations and represent 95% of the total recognized plan assets.December 31, 2022\ue61fIn \u20ac million Defined bene-In % Recognized Net liability/In % Ratio plan assets of which asset surplus fit obligationsplan assets(asset)on defined benefit recognized in the obligationsbalance sheetUnited Kingdom 1,045 27% \ue61f 1,031 14 2% 99% 0United States 1,097 29% \ue61f 984 113 14% 90% 0France 722 19% \ue61f 309 414 51% 43% 32Germany 399 10% \ue61f 201 198 24% 50% 0Belgium 328 9% \ue61f 330 -2 0% 101% 23Other countries 209 6% \ue61f 136 73 9% 65% 7Total 3,801 100% \ue61f 2,990 810 100% 79% 62December 31, 2021\ue61fIn \u20ac million Defined bene-In % Recognized Net liability/In % Ratio plan assets of which asset surplus fit obligationsplan assets(asset)on defined benefit recognized in the obligationsbalance sheetUnited Kingdom 1,618 32% \ue61f 1,678 -60 -5% 104% 76United States 1,315 26% \ue61f 1,230 86 8% 93% 66France 953 19% \ue61f 372 582 52% 39% 50Germany 516 10% \ue61f 70 446 40% 14%Belgium 384 8% \ue61f 405 -21 -2% 105% 51Other countries 229 5% \ue61f 139 90 8% 61% 5Total 5,016 100% \ue61f 3,893 1,123 100% 78% 248United KingdomSolvay sponsors a few defined benefit plans in the United Kingdom; the largest one is the Rhodia Pension Fund (the Fund). This is a final salary funded pension plan, with entitlement to accrue a percentage of salary per year of service. It was closed to new entrants in 2003 and replaced by a defined contribution plan.Broadly, about 8% of the liabilities are attributable to current employees, 28% to former employees and 64% to current pensioners.The Fund functions and complies with UK legislation under a large regulatory framework. The Pensions Regulator has a risk-based approach to regulation and a code of practice, which provides practical guidance to trustees and employers of defined benefit schemes on how to comply with the scheme funding requirements. In accordance with UK legislation, the Fund is subject to Scheme Specific Funding, which requires that pension plans are funded prudently.The Fund is governed by a Board of Trustees. They manage the Fund with prudent and fair judgment. The Trustees determine the liabilities used for Statutory Funding Objectives based on prudent actuarial and economic assumptions. Any shortfall or deficit once these liabilities have been deducted from the Fund\u2019s assets must be reduced by additional contributions and in a time frame determined in accordance with the employer\u2019s ability to pay and the strength of covenant or contingent security being offered by the employer.The Fund is subject to a triennial valuation cycle for funding purposes. This valuation is performed by the scheme actuary in line with UK regulations and is discussed between the Trustees and the sponsoring employer to agree the valuation assumptions and a funding plan. The last completed valuation was as of July 1, 2021, which established a fixed contribution rate of pensionable pay for active members plus a deficit recovery plan, which aims to fully fund the scheme\u2019s technical provisions by the end of 2027 in accordance with local regulations. The guarantee provided by Solvay (\u00a3 330 million) is based on local regulations and exceeds the recognized liability \u2013 See note F36 Contingent assets, liabilities and financial guarantees for more information. FranceSolvay sponsors several defined benefit plans in France. The largest plans are the French compulsory retirement indemnity plan and three closed top hat plans. Indeed, as required by the \u201cLoi Pacte\u201d, the open top hat plan (so called \u201cARS\u201d) was closed at the end of 2019 and replaced by a defined contribution plan. The main plan is for all former Rhodia employees who contributed to the plan prior to its closure in the 1970s. It offers a full benefit guarantee based on the end-of-career salary; more than 99% of the liabilities are attributable to current pensioners. This plan is partially funded.In accordance with French legislation, adequate guarantees have been provided.United StatesSolvay sponsors five defined benefit pension plans in the United States (two qualified plans and three non-qualified plans). A qualified plan is an employer-sponsored retirement plan that qualifies for special tax treatment under Section 401(a) of the Internal Revenue Code. At this moment all defined benefit plans are closed to new entrants where newly hired employees are eligible to participate in a defined contribution plan. Note that both qualified defined benefit pension plans are funded while the three non-qualified defined benefit pension plans are unfunded. The qualified plans make up the vast majority of the pension liabilities as of December 31, 2022.Solvay's plans are in compliance with local laws regarding audited financial statements, governmental filings, and Pension Benefit Guaranty Corporation insurance premiums where applicable. The plans are reviewed and monitored locally by fiduciary committees for purposes of plan investments and administrative matters.For the US qualified plans, Solvay\u2019s contributions take into account minimum (tax-deductible) funding requirements as well as maximum tax deductible contributions, both regulated by the tax authorities.Certain eligible participants may elect to receive their pension in a single lump sum payment instead of a monthly payment.Broadly, about 24% of the liabilities are attributable to current employees, 11% to former employees for whom benefit payments have not yet commenced and 65% to current pensioners.In 2022, in the United States Solvay contributed to two multiemployer pension plans under collective bargaining agreements that cover certain of its union-represented employees. Each of the multiemployer plans is a defined benefit pension plan. None of the multiemployer plans provide an allocation of its assets, liabilities, or costs among contributing employers. None of the multiemployer plans provides sufficient information to permit Solvay, or other contributing employers, to account for the multiemployer plan as a defined benefit plan. Accordingly, the company accounts for its participation in each of the multiemployer plans as if they were a defined contribution plan. For multiemployer plans, during 2022 and 2021, the annual contributions paid were less than \u20ac1 million.GermanySolvay sponsors various defined benefit plans in Germany. The largest plans are a closed final-pay plan and an open cash balance plan. Broadly, about 70% of the liabilities are attributable to current pensioners. These plans are partially funded; an additional voluntary contribution of \u20ac155 million to the Contractual Trust Agreement was paid in 2022.BelgiumSolvay sponsors two defined benefit plans in Belgium. These are funded pension plans. The plan for executives has been closed since the end of 2006, and the plan for the White and Blue collars has been closed since 2004. The past service benefits provided under these plans continue to be adapted each year considering annual salary increase and in\ufb02ation (\u201cDynamic management\u201d). In accordance with market practice in Belgium, because of favorable retirement lump sum taxation, most benefits are paid as lump sum. Furthermore, Solvay sponsors two open defined contribution plans, classified as defined benefit plans for accounting purposes due to the minimum guarantees explained hereafter. These are funded pension plans which are open since the beginning of 2007 for the one in favor of the executives and since the beginning of 2005 for the one in favor of the White and Blue collars. Participants may choose to invest their contributions amongst four different investment funds (from \u201cPrudent\u201d to \u201cDynamic\u201d). However, regardless of their choices, the Belgian law foresees that the employer must guarantee a return on employer contribution and on personal contribution, creating that way a potential liability for the Group. Since 2016 the return has been fixed at 1.75% for both types of contributions, at the minimum of the range provided by law since January 1, 2016 (1.75% to 3.75%). At the end of 2022, net liability recognized in the consolidated statement of financial position concerning these plans is not material.Solvay\u2019s plans are administered through the Solvay Pension Fund that operates in compliance with local laws regarding minimum funding, investments principles, audited financial statements, governmental filings, and governance principles. The Pension Fund is managed through a General Assembly and a Board of Directors delegating day-to-day activities to an operational committee.Solvay sponsors a few other smaller pension plans. All these plans are insured.Other PlansThe majority of the obligations relate to pension plans. In some countries (mainly the United States), there are also post-employment medical plans, which represent 4% (4% in 2021) of the total defined benefit obligation.B.3. Financial impactsChanges in net liability In \u20ac million 2022 2021Net amount recognized at beginning of period \ue61f 1,123 \ue61f 1,975Net expense recognized in P&L - Defined benefit plans \ue61f 58 \ue61f 33Actual employer contributions / direct actual benefits paid \ue61f -227 \ue61f -292Acquisitions and disposals \ue61f 0 \ue61f -1Remeasurements before impact of asset ceiling \ue61f -157 \ue61f -564Change in the effect of the asset ceiling limit on remeasurements \ue61f 2 \ue61f 2Reclassifications \ue61f 2 \ue61f -56Currency translation differences \ue61f 9 \ue61f 25Net amount recognized at end of period \ue61f 810 \ue61f 1,123Remeasurements including the impact of asset ceiling \u20ac(155) million comprise: \u00b7 the unfavorable investment return on plan assets (excluding interests reported in the consolidated income statement) for \u20ac910 million; \u00b7 increase in discount rates \u20ac(1,150) million mainly in the United States, United Kingdom, Brazil and Eurozone; \u00b7 increase in in\ufb02ation rate \u20ac60 million for Eurozone; \u00b7 other remeasurements due to changes in the other financial assumptions, demographic and experience effects \u20ac25 million.Net expenseIn \u20ac million 2022 2021Current service costs 38 43Past service costs (including curtailments and settlements) 1 -26Service costs 40 17Interest cost 99 66Interest income -85 -53Net interest 14 13Administrative expenses paid 5 3Net expense recognized in P&L - Defined benefit plans 58 33Remeasurements recognized in other comprehensive income -155\ue61f -562The service costs and administrative expenses of these benefit plans are recognized within cost of sales, administrative costs, research & development costs or operating gains and losses and results from legacy remediation, and the net interest is recognized as a finance expense.In 2022 the Group\u2019s current service costs amount to \u20ac38 million (\u20ac43 million in 2021), of which \u20ac27 million (\u20ac32 million in 2021) related to funded plans and \u20ac11 million (\u20ac11 million in 2021) related to unfunded plans. Net liabilityIn \u20ac million December 31, 2022 December 31, 2021Defined benefit obligations - Funded plans 3,477 4,468Fair value of plan assets at end of period -2,995 -3,896Deficit for funded plans 482 573Defined benefit obligations - Unfunded plans 323 548Deficit / surplus (-) 805 1,120Amounts not recognized as asset due to asset ceiling (recognized in other comprehensive 4 2income) Net liability (asset) 810 1,123Provision recognized 873 1,371Asset recognized -62 -248Changes in defined benefit obligationsIn \u20ac million 2022 2021Defined benefit obligation at beginning of period \ue61f 5,016 5,436Current service costs \ue61f 38 43Past service costs (including curtailments) \ue61f 1 -26Interest cost \ue61f 99 66Employee contributions \ue61f 4 4Settlements \ue61f 0 -2Acquisitions and disposals (-) \ue61f 0 -8Remeasurements in other comprehensive income \ue61f -1,067 -422Actuarial gains and losses due to changes in demographic assumptions \ue61f -26 -36Actuarial gains and losses due to changes in financial assumptions \ue61f -1,100 -322Actuarial gains and losses due to experience \ue61f 59 -64Actual benefits paid \ue61f -324 -302Currency translation differences \ue61f 32 225Reclassification and other movements \ue61f 2 1Defined benefit obligation at end of period \ue61f 3,800 5,016Defined benefit obligations - Funded plans \ue61f 3,477 4,468Defined benefit obligations - Unfunded plans \ue61f 323 548Changes in the fair value of plan assetsIn \u20ac million 2022 2021Fair value of plan assets at beginning of period \ue61f 3,896 3,461Interest income \ue61f 85 53Remeasurements in other comprehensive income \ue61f -910 142Return on plan assets (excluding amounts in net interests including on asset \ue61f -910 142surplus)Employer contributions \ue61f 227 292Employee contributions \ue61f 4 4Administrative expenses paid \ue61f -5 -3Acquisitions / Disposals (-) \ue61f 0 -7Settlements \ue61f 0 -2Actual benefits paid \ue61f -324 -302Currency translation differences \ue61f -23 200Reclassification and other movements \ue61f 0 57Fair value of plan assets at end of period \ue61f 2,995 3,896Actual return on plan assets (including on asset surplus) \ue61f -825 195In 2022, the total return on plan assets, i.e. including interest income, is a loss of \u20ac825 million against \u20ac195 million gain in 2021.In 2022, the Group\u2019s cash contributions amount to \u20ac227 million (\u20ac292 million in 2021), of which \u20ac42 million (\u20ac29 million in 2021) of mandatory contributions to funds, \u20ac155 million (\u20ac236 million in 2021) of voluntary cash contributions, and \u20ac30 million (\u20ac27 million in 2021) of direct benefits payments. In 2022, the voluntary cash contributions were made to improve the funding level of the Germany pension plans (\u20ac155 million) and increase de-risking with the additional plans assets. Except for any significant change in the regulatory environment (see \u201cregulatory risk\u201d above), the Group\u2019s mandatory cash contributions and direct benefits payments in 2023 are expected to be approximately \u20ac71 million.Categories of plan assetsDecember 31, 2022 December 31, 2021Equities 20% 23%Bonds 74% 62%Properties and infrastructures 3% 3%Cash and cash equivalents 2% 5%Others 1% 6%Total 100% 100%With respect to the invested assets, it should be noted that these assets do not contain any direct investment in Solvay shares or in property or other assets occupied or used by Solvay. This does not exclude Solvay shares being included in mutual investment fund type investments.Changes in asset ceiling In \u20ac million 2022 2021Effect of the asset ceiling limit at beginning of period \ue61f 2Change in the effect of the asset ceiling limit on remeasurements \ue61f 2 2Effect of the asset ceiling limit at end of period \ue61f 4 2Actuarial assumptions used in determining the liabilitySome of the retirement plans that Solvay has in place provide annuity payments that are adjusted on a regular basis to mitigate the effects for cost of living increases. The salary growth assumption is used to determine what will be the salary at the end of the career of the individuals, as the defined benefit plans take into account the last salary of the individuals. This assumption includes impacts of both in\ufb02ation and merit increases.The pension growth assumption defines the expected future adjustments for these annuity payments. The plan defines how these annuity payments will be adjusted, and might be linked to in\ufb02ation. Pension growth assumptions mainly apply for the defined benefit retirement plans in the United Kingdom, France and Germany.The long term in\ufb02ation assumption is presented separately as salary growth and pension growth assumptions encompass more variables than in\ufb02ation. Eurozone UK USA 2022 2021 2022 2021 2022 2021Discount rates 3.75% 1.00% 4.75% 2.00% 5.00% 2.75%Expected rates of future salary increases 2.00% - 4.25% 1.75% - 4.00% 2.50% - 3.00% 2.50% - 3.00% 3.00% - 3.50% 3.00% - 3.50%In\ufb02ation 2.00% - 2.50% 1.75% - 2.00% 3.00% 3.00% 2.50% 2.50%Expected rates of pension growth 0.00% - 2.50% 0.00% - 2.00% 2.80% 2.85% NA NAActuarial assumptions used in determining the annual costEurozone UK USA2022 2021 2022 2021 2022 2021Discount rates 1.00% 0.25% 2.00% 1.25% 2.75% 2.25%Expected rates of future salary 1.75% - 4.00% 1.75% - 3.75% 2.50% - 3.00% 2.00% - 2.75% 3.00% - 3.50% 3.00% - 3.50%increases In\ufb02ation 1.75% - 2.00% 1.50% - 1.75% 3.00% 2.75% 2.50% 2.00%Expected rates of pension growth 0.00% - 2.00% 0.00% - 1.75% 2.80% 2.70% NA NAActuarial assumptions regarding future mortality are based on recent country specific mortality tables. These assumptions translate at January 1, 2022 into an average remaining life expectancy in years for a pensioner retiring at age 65:In years \ue61f Belgium France Germany United United KingdomStatesRetiring at the end of the \ue61f \ue61f \ue61f \ue61f \ue61f \ue61freporting\ue61fperiodMale \ue61f 19 25 20 20 21Female \ue61f 22 28 24 23 22Retiring 20 years after the end of the reporting\ue61fperiodMale \ue61f 20 28 23 21 22Female \ue61f 24 31 26 24 24For most countries the mortality assumptions re\ufb02ect actual scheme experience and/or Solvay\u2019s expectations in terms of future mortality improvements.The actuarial assumptions used in determining the employee benefits obligation at December\ue61f31 are based on the following employee benefits liabilities durations:Eurozone United Kingdom United StatesDuration in years 11.1 14.2 9.0Sensitivities on the defined benefits obligation for the post-employment benefitsEach sensitivity amount is calculated assuming that all other assumptions are held constant. The economic factors and conditions often affect multiple assumptions simultaneously.Sensitivity to a change of percentage in the discount rates: In \u20ac million 0.25% increase 0.25% decreaseEurozone -35 37United Kingdom -34 36United States -23 24Others -4 4Total -96 101Sensitivity to a change of percentage in the in\ufb02ation rates:In \u20ac million 0.25% increase 0.25% decreaseEurozone 34 -33United Kingdom 28 -27United States 0 0Others 2 -2Total 64 -62Sensitivity to a change of percentage in salary growth rates:In \u20ac million 0.25% increase 0.25% decreaseEurozone 5 -5United Kingdom 2 -1United States 0 0Others 0 0Total 7 -6Sensitivity to a change of one year on mortality tables \u2013 The table shows impacts when the age of all beneficiaries increases or decreases by one year:In \u20ac million Age correction +1 year Age correction -1 yearEurozone -62 64United Kingdom -48 48United States -28 28Others -5 5Total -143 145RestructuringsA restructuring provision is recognized when the Group has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the entity.Environmental remediation costsEnvironmental liabilities are mainly related to non-ongoing activities (shut-down sites, discontinued activities or divested activities where Solvay maintains certain commitments) and, to a lower extent, to ongoing activities (see comments below).An environmental provision is recognized, in accordance to IAS 37, when there is a current legal or constructive obligation resulting from past events which will result in a probable out\ufb02ow of resources (expenses / cash outs) to settle it and for which a reliable estimate of such out\ufb02ows and timing can be made.The environmental expenses encompass, but are not limited to, the following key matters \u00b7 Sampling and analytical costs for soil and ground water monitoring \u00b7 Cost related to dismantling when required to meet a remediation or permit obligation \u00b7 Asbestos removal when obligated by regulation \u00b7 Environmental investigations and studies (Risk Assessments, Phase I and II soil and groundwater) The closing amount of the environmental provisions is based on the net present value of the future cash \ufb02ows needed, for current and future years, to settle remediation obligations. Forecast expenditures are based on external consultant estimates, where appropriate and possible. Future expenditures are forecast and revised biannually and validated quarterly by Solvay finance and suitably qualified industrial experts led by the Group Environmental Rehabilitation Director and benefit from inputs of legal department staff for the evolution of Environmental Regulations.In the absence of probable obligations, a contingent liability may be disclosed to represent the future possible liability. In some cases, contingent liabilities cannot be quantified. See Note F36 Contingent assets, liabilities and financial guarantees.Restructuring provisionsIn 2022, these provisions amount to \u20ac119 million, compared with \u20ac191 million at the end of 2021.The provisions at the end of 2022 mainly relate to the restructuring charges for the simplification of all support functions in the frame of the Group\u2019s simplification and transformation program, including the strategic transformation measures. Environmental provisionsThese provisions amount to \u20ac\ue61f702\ue61fmillion at the end of 2022, compared with \u20ac\ue61f648\ue61fmillion at the end of 2021, and pertain to: \u00b7 mines and drilling operations to the extent that legislation and/or operating permits in relation to quarries, mines and drilling operations contain requirements to pay compensation to third parties. Most of these provisions, based on local expert advice, can be expected to be used over a 1-20\ue61fyear horizon and amount to \u20ac\ue61f125 million; \u00b7 the dismantling of the last mercury electrolysis activities was completed in 2019. The remaining provisions related to those activities will be used for the management of contamination of soil and groundwater, mostly over the next 20 years; \u00b7 lime dikes (settling ponds related mainly to soda ash plant), dump at sites and third party dump sites (linked to several industrial activities). These provisions have an horizon of 1 to 20 years; \u00b7 various types of pollution (organic, inorganic) coming from miscellaneous chemical productions; these provisions mainly cover discontinued activities or closed plants. Most of these provisions have a horizon of 1 to 20\ue61fyears; \u00b7 Solvay Specialty Polymers made significant progress toward determining the scope of remedial activities pertaining to the per- and poly\ufb02uoroalkyl substances (PFAS) related to the West Deptford, New Jersey site. Due to recent technical studies and in cooperation with the local authorities, Solvay was able to reasonably estimate future expenses to address this remediation. As a consequence, a corresponding provision of \u20ac93 million was recognized in Q3 2022. The resulting cash out\ufb02ows are expected to occur over a minimum 20 year period with 50% of the out\ufb02ows occurring within the next 2 years.\ue61f This provision reduces, though does not eliminate, the associated contingent liabilities previously reported.The variation of Environmental provisions also were impacted from the revised assumptions of higher in\ufb02ation rates, partially offset by the impact of higher discount rates reducing the present value of the overall liability by \u20ac(59) million. This effect, combined with the unwinding of the opening liabilities for \u20ac17 million resulted in a net decrease of \u20ac(42) million related to discounting. The estimated amounts are discounted based on the probable date of settlement, and are periodically adjusted to re\ufb02ect the passage of time.The breakdown of the environmental provisions and related uses for the main Countries/Regions is reported here below:December 31, 2022 December 31, 2021In \u20ac million Provisions In % ProvisionsUse of Provisions In % Provisions Use of ongoing provisionsongoing provisionsactivitiesactivitiesFrance 145 21% 1 -24 152 24% -13Germany 112 16% 7 -5 117 18% 7 -4Rest of Europe 144 21% 5 -15 161 25% 5 -14North America 226 32% 0 -37 151 23% -24Rest of the world 74 11% 0 -8 66 10% -6Total 702 100% 12 -90 648 100% 13 -61Provisions for litigationProvisions for litigation refer to indirect tax and legal exposures. They amount to \u20ac\ue61f97\ue61fmillion in 2022 (\u20ac62 million in 2021). The balance at the end of 2022 relates to indirect tax risks (\u20ac\ue61f11\ue61fmillion) and legal claims (\u20ac\ue61f86\ue61fmillion).Other provisionsOther provisions relate to the shutdown or disposal of activities and amount to \u20ac\ue61f123\ue61fmillion in 2022, compared with \u20ac\ue61f126\ue61fmillion at the end of 2021. ",
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"value": "NOTE\ue61fF15 ADDITIONS, REVERSALS AND USE OF PROVISIONSAdditions and reversals on provisions in 2022 amount to \u20ac336 million (\u20ac464 million in 2021) and concern mainly employee benefits \u20ac63 million (\u20ac\ue61f46\ue61fmillion in 2021), restructuring \u20ac32 million (\u20ac184 million in 2021) and environment for \u20ac177 million (\u20ac90 million in 2021).Use of provisions in 2022 amount to \u20ac(328) million (\u20ac(303) million in 2021) and concerns mainly employee benefits \u20ac(101) million (\u20ac(89) million in 2021), environment \u20ac(90) million (\u20ac(61) million in 2021) and restructuring \u20ac(106) million (\u20ac(118) million in 2021).In 2022, use of provisions for additional voluntary contributions in pension plans relates to \u20ac(155) million in Germany.See note F31 Provisions for more information.NOTE\ue61fF35COMMITMENTS TO ACQUIRE PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETSIn \u20ac million December 31, 2022 December 31, 2021Commitments to acquire property, plant and equipment and intangible assets 457 301The amount mainly relates to commitments for the acquisition of property, plant and equipment. The increase in 2022 over the prior year is mainly explained by the planned purchase of the new Solvay Group headquarters in Belgium as well\ue61fas the acquisition of industrial equipment for the extension of the Tavaux site in France.A contingent liability is:(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or(b) a present obligation that arises from past events but is not recognized because:(i) it is not probable that an out\ufb02ow of resources embodying economic benefits will be required to settle the obligation; or(ii) the amount of the obligation cannot be measured with sufficient reliabilityContingent liabilities are not recognized in the consolidated financial statements, except if they arise from a business combination. They are disclosed unless the possibility of an out\ufb02ow of economic benefits is remote.Financial guarantees are contracts that require the Group to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.In order to avoid double counting, only guarantees in excess of liabilities recognized or disclosures made elsewhere in the Group's consolidated financial statements are disclosed in this note.\ue61f Regarding financial guarantees, all financial guarantees of the Group are presented in this note.In \u20ac million December 31, 2022 December 31, 2021Contingent assets 91 91Financial guarantees Rusvinyl 0 83Guarantees for pensions 378 348Environmental contingent liabilities 315 301Contingent liabilities 693 733Contingent AssetFollowing an arbitration procedure that began in 2012, on June 22, 2021 the ICC Arbitration Court in Geneva (CH) issued a partial award in favor of Solvay Specialty Polymers Italy SpA, ordering Edison S.p.A. (Edison) to pay \u20ac91.632 million for the losses, damages and costs incurred up to the end of 2016 in relation to certain environmental issues at the Spinetta Marengo and Bussi sites, previously owned and operated by (Mont)Edison SpA and Ausimont SpA. A further phase of the arbitration proceeding, expected to end in 2024, will define the quantification of the additional losses, damages and costs from 2017 onwards, as well as the interests applicable to the amount awarded and the costs of litigation, to be reimbursed to Solvay Specialty Polymers Italy SpA. No income was recognized during either 2021 or 2022 in relation to the partial award, pending Edison\u2019s appeals against the enforcement of the partial award.On January 23, 2023, the Group received a favorable ruling from the Court of Appeal of Milan which rejected Edison's appeal against the enforcement of the partial award, making it definitively enforceable in Italy.\ue61f On February 8, 2023, Edison settled the \u20ac91.632 million partial award in full with Solvay.\ue61f Contingent LiabilitiesThe financial guarantees related to Rusvinyl, the joint venture with SIBUR for the operation of a PVC plant in Russia were released in Q3 2022 following the full repayment of Rusvinyl financial debt. The guarantees for pensions are related to the main UK Pension Funds (\u20ac358 million) \u2013 See note F31.B.2. Description of obligations. Such corresponds to the amount by which the guarantee exceeds the recognized pension liability (as at December 31, 2022) or the recognized plan assets surplus as at (December 31, 2021). This guarantee applies to the pension liability measured based on a local UK regulatory basis (prudential basis) plus an allocation for market risk, which is higher when compared to the IAS\ue61f19 methodology. The probability of the guarantees being called is considered to be highly remote.Contingent liabilities of \u20ac315 million above relate to environmental remediation matters that can be estimated with sufficient reliability.Generally, in line with good business practice, we are not reporting any pending or threatened proceeding, which has not matured, and where the probability of existing or future exposure is unlikely or uncertain, where financial impact is not estimable and for which we are not able to quantify contingent liabilities.In the United States, Solvay Specialty Polymers USA, LLC (SpP) is a defendant in 35 separate individual and class action lawsuits relating to its historical use of per- and poly\ufb02uoroalkyl substances (PFAS). The vast majority of these cases (30) are pending in the federal and state courts in the state of New Jersey, in the US, and the majority (27) are claims by private plaintiffs seeking medical monitoring or compensation for alleged personal injury or other alleged economic loss. Three (3) of the cases involve civil claims by separate US state governmental authorities\u2014New Jersey, Michigan and Illinois\u2014seeking various damages for alleged violations of state environmental laws, including natural resource damages. The State of New Jersey also seeks the environmental cleanup of PFAS pollution allegedly caused by a single operating facility of the subsidiary in New Jersey. Two (2) cases relate to allegations that contamination from the same operating facility caused contamination to a local municipal well. Finally, three (3) of the cases allege that products purchased from the subsidiary caused contamination elsewhere. Overall, the number of these cases remains low in comparison to other industry participants. Solvay continues to dispute the merits of these claims and defend itself accordingly. In all of these cases, the plaintiffs have the burden of proof against all defendants. See note F31.B Provisions Other than Employee Benefits for additional information. In Italy, there are several pending litigations: \u00b7 (a) With reference to the Rosignano industrial site, certain criminal preliminary investigations continue to be pending before the Criminal Court of Livorno regarding the alleged contamination of certain areas outside the site;\ue61f \u00b7 (b) With regard to the Spinetta industrial site, in December 2022 the Public Prosecutor Office of the Court of Alessandria closed the preliminary investigations started at the end of 2020 regarding certain alleged environmental violations of two Solvay managers. The Public Prosecutor Office should decide to request the dismissal of this provisional charge or alternatively the case should go to trial by the end of Q1, 2023; \u00b7 (c) With regard to the Bussi industrial site, sold by Solvay in 2016 with the surrounding area sold in 2018, an administrative litigation is pending in relation to the identification of the polluter of the industrial site.\ue61fBased on the overall assessment, including compliance with applicable laws and regulations and the unlikely or uncertain probability of existing or future exposure, as well as undefined financial impact, which is not estimable at this time, no additional provisions have been recorded in association with these litigations and contingent liabilities cannot be quantified.",
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"pp-value-91-4": {
"value": "NOTE\ue61fF19 INTANGIBLE ASSETSAccounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.Intangible assets are amortized on a straight-line basis over their estimated useful lives, which do not exceed the contractual period, if any. The estimated useful lives, residual values and amortization methods are reviewed at each year-end, and any changes in estimates are accounted for prospectively.Patents and trademarks 2-20 yearsSoftware 3-5 yearsDevelopment expenditures 2-5 yearsCustomer relationships 5-29 yearsOther intangible assets - Technologies 5-20 yearsAmortization expense is included in the consolidated income statement within cost of goods sold, administrative costs, research and development costs and other operating gains and losses.The asset is tested for impairment if (a) there is a trigger for impairment, and (b) annually for projects under development (see note F24 Impairment).Intangible assets are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an intangible asset is recognized in profit or loss at the moment of derecognition.Patents, trademarks and customer relationshipsThose intangible assets have mainly been acquired through business combinations. Customer relationships consist of customer lists.Other intangible assetsOther intangible assets mainly include technology acquired separately or in a business combination.In \u20ac million Development Patents and Customer Other Totalcoststrademarksrelationshipsintangible assetsGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 464 1,620 1,856 661 4,601Additions 48 4 \ue61f 23 75Disposals and closures -9 -21 \ue61f -4 -33Increase through business combinations 0 0 \ue61f 7 7Currency translation differences 12 79 117 49 257Other 1 2 \ue61f 4 7December 31, 2021 517 1,686 1,973 739 4,914Additions 67 3 \ue61f 24 94Disposals and closures -22 -16 \ue61f -5 -43Increase through business combinations 0 0 \ue61f 0 0Currency translation differences 7 60 93 22 183Other 7 11 \ue61f -15 3December 31, 2022 577 1,744 2,066 765 5,152Accumulated amortization \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -173 -930 -824 -531 -2,459Amortization -65 -104 -82 -13 -264Impairment 0 5 0 -5 0Disposals and closures 8 21 \ue61f 4 32Currency translation differences -3 -36 -36 -42 -116Other 0 -3 \ue61f -2 -5December 31, 2021 -233 -1,047 -941 -590 -2,812Amortization -63 -97 -90 -14 -265Impairment 0 0 0 0 0Reversal of impairment 0 0 \ue61f 8 8Disposals and closures 22 16 \ue61f 5 43Currency translation differences -2 -26 -29 -21 -78Other 0 0 \ue61f 0 0December 31, 2022 -277 -1,155 -1,061 -611 -3,104Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 291 690 1,032 129 2,140December 31, 2021 283 638 1,031 149 2,102December 31, 2022 300 589 1,005 154 2,048Intangibles mainly relate to the intangibles acquired through the acquisitions of Rhodia and Cytec. The average remaining useful life of Cytec\u2019s assets is 10 years. NOTE\ue61fF20 GOODWILL AND BUSINESS COMBINATIONSGoodwillGoodwill arising in a business combination is recognized as an asset at the date that control is obtained (the acquisition date). Goodwill is measured as the excess of the sum of:(a) the consideration transferred;(b) the amount of any non-controlling interests in the acquiree; and(c) in a business combination achieved in stages, the acquisition date fair value of the previously held equity interest in the acquiree, over the share acquired by the Group in the fair value of the entity\u2019s identifiable net assets at the acquisition date.Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.Goodwill \u2013 overviewIn \u20ac million TotalDecember 31, 2020 3,265Currency translation differences 115Disposals -1December 31, 2021 3,379Currency translation differences 94December 31, 2022 3,472In 2022 and 2021, the currency translation differences mainly relate to goodwill expressed in US dollars.Goodwill by (groups of) CGU(s) Goodwill acquired in a business combination is allocated to the CGUs or groups of CGUs that are expected to benefit from that business combination.\ue61f 2022 \ue61f \ue61fIn \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUs \ue61f \ue61f \ue61f \ue61fMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUs \ue61f \ue61f \ue61f \ue61fComposite Materials 555 \ue61f 37 591Novecare 553 12 565Technology Solutions 690 \ue61f 43 734Special Chem 210 \ue61f 0 210Specialty Polymers 179 \ue61f 1 181Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,379 0 94 3,4722021In \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUsMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUsComposite Materials 509 \ue61f 46 555Novecare 542 -1 13 553Technology Solutions 636 \ue61f 54 690Special Chem 210 \ue61f 0 210\ue61f 2 Specialty Polymers 177179Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,265 -1 115 3,379See note F24 Impairment. ",
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"pp-value-91-5": {
"value": "NOTE\ue61fF19 INTANGIBLE ASSETSAccounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.The asset is tested for impairment if (a) there is a trigger for impairment, and (b) annually for projects under development (see note F24 Impairment).Intangible assets are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an intangible asset is recognized in profit or loss at the moment of derecognition.Patents, trademarks and customer relationshipsThose intangible assets have mainly been acquired through business combinations. Customer relationships consist of customer lists.Other intangible assetsOther intangible assets mainly include technology acquired separately or in a business combination.In \u20ac million Development Patents and Customer Other Totalcoststrademarksrelationshipsintangible assetsGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 464 1,620 1,856 661 4,601Additions 48 4 \ue61f 23 75Disposals and closures -9 -21 \ue61f -4 -33Increase through business combinations 0 0 \ue61f 7 7Currency translation differences 12 79 117 49 257Other 1 2 \ue61f 4 7December 31, 2021 517 1,686 1,973 739 4,914Additions 67 3 \ue61f 24 94Disposals and closures -22 -16 \ue61f -5 -43Increase through business combinations 0 0 \ue61f 0 0Currency translation differences 7 60 93 22 183Other 7 11 \ue61f -15 3December 31, 2022 577 1,744 2,066 765 5,152Accumulated amortization \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -173 -930 -824 -531 -2,459Amortization -65 -104 -82 -13 -264Impairment 0 5 0 -5 0Disposals and closures 8 21 \ue61f 4 32Currency translation differences -3 -36 -36 -42 -116Other 0 -3 \ue61f -2 -5December 31, 2021 -233 -1,047 -941 -590 -2,812Amortization -63 -97 -90 -14 -265Impairment 0 0 0 0 0Reversal of impairment 0 0 \ue61f 8 8Disposals and closures 22 16 \ue61f 5 43Currency translation differences -2 -26 -29 -21 -78Other 0 0 \ue61f 0 0December 31, 2022 -277 -1,155 -1,061 -611 -3,104Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 291 690 1,032 129 2,140December 31, 2021 283 638 1,031 149 2,102December 31, 2022 300 589 1,005 154 2,048Intangibles mainly relate to the intangibles acquired through the acquisitions of Rhodia and Cytec. The average remaining useful life of Cytec\u2019s assets is 10 years. ",
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"pp-value-92-7": {
"value": "Accounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.Intangible assets are amortized on a straight-line basis over their estimated useful lives, which do not exceed the contractual period, if any. The estimated useful lives, residual values and amortization methods are reviewed at each year-end, and any changes in estimates are accounted for prospectively.Patents and trademarks 2-20 yearsSoftware 3-5 yearsDevelopment expenditures 2-5 yearsCustomer relationships 5-29 yearsOther intangible assets - Technologies 5-20 yearsAmortization expense is included in the consolidated income statement within cost of goods sold, administrative costs, research and development costs and other operating gains and losses.The asset is tested for impairment if (a) there is a trigger for impairment, and (b) annually for projects under development (see note F24 Impairment).Intangible assets are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an intangible asset is recognized in profit or loss at the moment of derecognition.Patents, trademarks and customer relationshipsThose intangible assets have mainly been acquired through business combinations. Customer relationships consist of customer lists.Other intangible assetsOther intangible assets mainly include technology acquired separately or in a business combination.",
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"pp-value-92-8": {
"value": "Accounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.The asset is tested for impairment if (a) there is a trigger for impairment, and (b) annually for projects under development (see note F24 Impairment).Intangible assets are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an intangible asset is recognized in profit or loss at the moment of derecognition.Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.Accounting policyGeneralAt the end of each reporting period, the Group reviews whether there is any indication that assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are allocated to individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified.The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate. \ue61f Future cash \ufb02ows are adjusted for risks not incorporated into the discount rate.\ue61fIf the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.When an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. An impairment loss recognized for goodwill shall not be reversed in a subsequent period.Assets other than non-current assets held for saleIn accordance with IAS 36 Impairment of Assets, the recoverable amount of property, plant and equipment, intangible assets, right-of-use assets, CGUs or groups of CGUs, including goodwill, and equity method investees corresponds to the higher of their fair value less costs of disposal, and their value in use. The latter equals the present value of the future cash \ufb02ows expected to be derived from each asset, CGU or group of CGUs, and equity method investees and is determined using the following inputs: \u00b7 business plan approved by management based on growth and profitability assumptions, taking into account past performances, forecast changes in the economic environment and expected market developments, including opportunity and risks resulting from climate change (taking into account the Solvay One Planet strategy - see note Climate change in the IFRS general accounting policies) and environmental regulations such as products phasing out. For further details, refer to the Risk Management Section. Such business plan generally covers five\ue61fyears, unless management is confident that projections over a longer period are reliable; \u00b7 consideration of a terminal value determined based on the cash \ufb02ows obtained by extrapolating the cash \ufb02ows of the last years of the business plan referred to above, affected by a long-term growth rate deemed appropriate for the activity and the location of the assets; \u00b7 discounting of expected cash \ufb02ows at a rate determined using the weighted average cost of capital formula.Discount rateWeighted average cost of capital (WACC) was computed using the same methodology applied in previous years after extensive benchmarking with Peers: \u00b7 A short term WACC of 6.6% was utilized in 2022 (5.1% in 2021) to discount the expected cash \ufb02ows of the initial four years, computed based on prevailing discount rates; \u00b7 A long term WACC of 6.5% was utilized in 2022 (6.8% in 2021) to discount the expected cash \ufb02ows of the fifth year and the Terminal Value, and is a rolling 8-year average of historical short term WACCs. These WACCs are in the low range of the observed Peers\u2019 WACC estimates.Long-term growth ratesThe long-term growth rates used in 2022 are based: \u00b7 on the comprehensive review of the entire business portfolio performed in 2019 with the definition of the G.R.O.W. Strategy when each CGU was assigned to one of three agile business segments that became effective as from 2020: Materials, Chemicals and Solutions, with different growth opportunities, consistent with the long term growth rates of the market they serve and the Group competitive position in those markets; and \u00b7 on the long term growth potential for Composite Materials and Technology Solutions assessed during the 2020 impairment test which remain very strong.After reassessment of the long-term growth prospects the Group concluded that the prior year rates are still applicable and were thus set at: \u00b7 2% for the Specialty Polymers CGU and 3% for the Composite Materials CGU; \u00b7 0% in the Segment Chemicals, except for Soda Ash and Peroxides, for which a 1% rate was set; and \u00b7 1% for the other CGUs in the Segment Solutions (excluding Technology Solutions, for which 1.5% was used, and Oil & Gas).Other key assumptions are specific to each CGU (utility price, volumes, margin, etc.) and are based on approved budgets and mid-term plans. Impairment of financial assetsThe impairment loss of a financial asset measured at amortized cost is calculated based on the expected loss model, representing the weighted average of credit losses with the respective risks of a default occurring as the weights. Expected credit losses are based on the difference between the contractual cash \ufb02ows due in accordance with the contract and all the cash \ufb02ows that the Group expects to receive, discounted at an approximation of the original effective interest rate.For trade receivables that do not contain a significant financing component (i.e. substantially all trade receivables), the loss allowance is measured at an amount equal to lifetime expected credit losses. Those are the expected credit losses that result from all possible default events over the expected life of those trade receivables, using a provision matrix that takes into account historical information on defaults adjusted for the forward-looking information per customer. The Group considers a financial asset in default when contractual payments are 60 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is fully impaired when there is no reasonable expectation of recovering the contractual cash \ufb02ows.Impairment losses are recognized in the consolidated income statement, except for debt instruments measured at fair value through other comprehensive income. In this case, the allowance is recognized in other comprehensive income.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-92-9": {
"value": "Accounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.Intangible assets are amortized on a straight-line basis over their estimated useful lives, which do not exceed the contractual period, if any. The estimated useful lives, residual values and amortization methods are reviewed at each year-end, and any changes in estimates are accounted for prospectively.Patents and trademarks 2-20 yearsSoftware 3-5 yearsDevelopment expenditures 2-5 yearsCustomer relationships 5-29 yearsOther intangible assets - Technologies 5-20 yearsAmortization expense is included in the consolidated income statement within cost of goods sold, administrative costs, research and development costs and other operating gains and losses.Items of property, plant and equipment are initially measured at cost. The cost of an item of property, plant and equipment comprises its purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. If applicable, the cost comprises borrowing costs during the construction period.After initial recognition, items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. The components of an item of property, plant and equipment with different useful lives are depreciated separately. Land is not depreciated. The estimated useful lives, residual values and depreciation methods are reviewed at each year end, also taking into account the potential impact of climate change including the execution of the Solvay One Plant Strategy (see Note Climate Change in the IFRS general accounting policies). Any changes in estimates are accounted for prospectively.Buildings 30-40 yearsIT equipment 3-5 yearsMachinery and equipment 10-20 yearsTransportation equipment 5-20 yearsDepreciation expense is included in the consolidated income statement within cost of goods sold, administrative costs, and R&D costs.Dismantling and restoration costsDismantling and restoration costs are included in the cost of an item of property, plant and equipment if the Group has a legal or constructive obligation to dismantle or restore. They are depreciated over the useful life of the items to which they pertain.Generally, Solvay\u2019s obligation to dismantle and/or restore its operating sites is only likely to arise upon the discontinuation of a site\u2019s activities. A provision for dismantling of discontinued sites or installations is recognized when there is a legal obligation (due to a request or injunction from the relevant authorities), or when there is no technical alternative than to dismantle, so to ensure the safety compliance of the discontinued sites or installations.Right-of-use assetThe right-of-use asset is initially measured at cost, which comprises: \u00b7 the amount of the initial measurement of the lease liability; \u00b7 any lease payments made at or before the commencement date, less any lease incentive received; and \u00b7 any initial direct costs incurred by the Group.After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any accumulated impairment losses. Right-of-use assets are depreciated using the straight-line depreciation method, from the commencement date to (a) the end of the useful life of the underlying asset, in case the lease transfers ownership of the underlying asset to the Group by the end of the lease term, or the lease contains a purchase option that the Group is reasonably certain to exercise, or (b) the earlier of the end of the useful life and the end of the lease term, in all other cases. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-92-10": {
"value": "Accounting policyAn intangible asset is an identifiable non-monetary asset without physical substance. It is identifiable when it is separable, i.e. Is capable of being separated or divided from the Group, or when it arises from contractual or other legal rights. An intangible asset shall be recognized if, and only if:(a) it is probable that the expected future economic benefits that are attributable to the asset will \ufb02ow to the Group; and(b) the cost of the asset can be measured reliably.Intangible assets acquired or developed internally are initially measured at cost. The cost of an acquired intangible asset comprises its purchase price, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, and any directly attributable cost of preparing the asset for its intended use. Subsequent expenditure on intangible assets is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred.After initial recognition, intangible assets are measured at cost less accumulated amortization and impairment losses, if any.Intangible assets are amortized on a straight-line basis over their estimated useful lives, which do not exceed the contractual period, if any. The estimated useful lives, residual values and amortization methods are reviewed at each year-end, and any changes in estimates are accounted for prospectively.Patents and trademarks 2-20 yearsSoftware 3-5 yearsDevelopment expenditures 2-5 yearsCustomer relationships 5-29 yearsOther intangible assets - Technologies 5-20 yearsAmortization expense is included in the consolidated income statement within cost of goods sold, administrative costs, research and development costs and other operating gains and losses.The asset is tested for impairment if (a) there is a trigger for impairment, and (b) annually for projects under development (see note F24 Impairment).Intangible assets are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an intangible asset is recognized in profit or loss at the moment of derecognition.Patents, trademarks and customer relationshipsThose intangible assets have mainly been acquired through business combinations. Customer relationships consist of customer lists.Other intangible assetsOther intangible assets mainly include technology acquired separately or in a business combination.GoodwillGoodwill arising in a business combination is recognized as an asset at the date that control is obtained (the acquisition date). Goodwill is measured as the excess of the sum of:(a) the consideration transferred;(b) the amount of any non-controlling interests in the acquiree; and(c) in a business combination achieved in stages, the acquisition date fair value of the previously held equity interest in the acquiree, over the share acquired by the Group in the fair value of the entity\u2019s identifiable net assets at the acquisition date.Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-99-4": {
"value": "NOTE\ue61fF20 GOODWILL AND BUSINESS COMBINATIONSAccounting policyGeneralAcquisitions of subsidiaries are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of acquisition) of assets transferred and liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized in profit or loss as incurred.Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance with relevant IFRSs, generally through profit or loss.Where a business combination is achieved in stages, the Group\u2019s previously held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. The date the Group obtains control) and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.The acquiree\u2019s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS\ue61f3 Business Combinations are recognized and measured at their fair value at the acquisition date, except that: \u00b7 deferred tax assets or liabilities, and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with IAS\ue61f12 Income Taxes, and IAS\ue61f19 Employee Benefits, respectively; \u00b7 liabilities or equity instruments related to the replacement by the Group of an acquiree\u2019s share-based payment awards are measured in accordance with IFRS\ue61f2 Share-based Payment; and \u00b7 assets (or disposal groups) that are classified as held for sale in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see paragraph below), or additional assets or liabilities are recognized, to re\ufb02ect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date.The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date, and does not exceed twelve months.GoodwillGoodwill arising in a business combination is recognized as an asset at the date that control is obtained (the acquisition date). Goodwill is measured as the excess of the sum of:(a) the consideration transferred;(b) the amount of any non-controlling interests in the acquiree; and(c) in a business combination achieved in stages, the acquisition date fair value of the previously held equity interest in the acquiree, over the share acquired by the Group in the fair value of the entity\u2019s identifiable net assets at the acquisition date.Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.Goodwill \u2013 overviewIn \u20ac million TotalDecember 31, 2020 3,265Currency translation differences 115Disposals -1December 31, 2021 3,379Currency translation differences 94December 31, 2022 3,472In 2022 and 2021, the currency translation differences mainly relate to goodwill expressed in US dollars.Goodwill by (groups of) CGU(s) Goodwill acquired in a business combination is allocated to the CGUs or groups of CGUs that are expected to benefit from that business combination.\ue61f 2022 \ue61f \ue61fIn \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUs \ue61f \ue61f \ue61f \ue61fMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUs \ue61f \ue61f \ue61f \ue61fComposite Materials 555 \ue61f 37 591Novecare 553 12 565Technology Solutions 690 \ue61f 43 734Special Chem 210 \ue61f 0 210Specialty Polymers 179 \ue61f 1 181Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,379 0 94 3,4722021In \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUsMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUsComposite Materials 509 \ue61f 46 555Novecare 542 -1 13 553Technology Solutions 636 \ue61f 54 690Special Chem 210 \ue61f 0 210\ue61f 2 Specialty Polymers 177179Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,265 -1 115 3,379See note F24 Impairment. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-100-3": {
"value": "Accounting policyGeneralAcquisitions of subsidiaries are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of acquisition) of assets transferred and liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized in profit or loss as incurred.Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance with relevant IFRSs, generally through profit or loss.Where a business combination is achieved in stages, the Group\u2019s previously held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. The date the Group obtains control) and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.The acquiree\u2019s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS\ue61f3 Business Combinations are recognized and measured at their fair value at the acquisition date, except that: \u00b7 deferred tax assets or liabilities, and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with IAS\ue61f12 Income Taxes, and IAS\ue61f19 Employee Benefits, respectively; \u00b7 liabilities or equity instruments related to the replacement by the Group of an acquiree\u2019s share-based payment awards are measured in accordance with IFRS\ue61f2 Share-based Payment; and \u00b7 assets (or disposal groups) that are classified as held for sale in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see paragraph below), or additional assets or liabilities are recognized, to re\ufb02ect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date.The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date, and does not exceed twelve months.Goodwill \u2013 overviewIn \u20ac million TotalDecember 31, 2020 3,265Currency translation differences 115Disposals -1December 31, 2021 3,379Currency translation differences 94December 31, 2022 3,472In 2022 and 2021, the currency translation differences mainly relate to goodwill expressed in US dollars.Goodwill by (groups of) CGU(s) Goodwill acquired in a business combination is allocated to the CGUs or groups of CGUs that are expected to benefit from that business combination.\ue61f 2022 \ue61f \ue61fIn \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUs \ue61f \ue61f \ue61f \ue61fMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUs \ue61f \ue61f \ue61f \ue61fComposite Materials 555 \ue61f 37 591Novecare 553 12 565Technology Solutions 690 \ue61f 43 734Special Chem 210 \ue61f 0 210Specialty Polymers 179 \ue61f 1 181Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,379 0 94 3,4722021In \u20ac million At beginning of Disposals Currency translation At the end of the perioddifferencesthe periodOperating segments - Groups of CGUsMaterials 341 \ue61f \ue61f 341Chemicals 121 \ue61f \ue61f 121Solutions 264 \ue61f \ue61f 264(Groups of) CGUsComposite Materials 509 \ue61f 46 555Novecare 542 -1 13 553Technology Solutions 636 \ue61f 54 690Special Chem 210 \ue61f 0 210\ue61f 2 Specialty Polymers 177179Soda Ash and Derivatives 162 \ue61f \ue61f 162Coatis 82 \ue61f \ue61f 82Silica 72 \ue61f \ue61f 72Aroma Performance 49 \ue61f \ue61f 49Energy Services 50 \ue61f \ue61f 50Hydrogen Peroxide Europe 21 \ue61f \ue61f 21Hydrogen Peroxide Mercosul 14 \ue61f \ue61f 14Hydrogen Peroxide Nafta 7 \ue61f \ue61f 7Hydrogen Peroxide Asia 11 \ue61f 0 11Total goodwill 3,265 -1 115 3,379See note F24 Impairment. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-100-5": {
"value": "Accounting policyGeneralAcquisitions of subsidiaries are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of acquisition) of assets transferred and liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized in profit or loss as incurred.Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance with relevant IFRSs, generally through profit or loss.Where a business combination is achieved in stages, the Group\u2019s previously held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. The date the Group obtains control) and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.The acquiree\u2019s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS\ue61f3 Business Combinations are recognized and measured at their fair value at the acquisition date, except that: \u00b7 deferred tax assets or liabilities, and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with IAS\ue61f12 Income Taxes, and IAS\ue61f19 Employee Benefits, respectively; \u00b7 liabilities or equity instruments related to the replacement by the Group of an acquiree\u2019s share-based payment awards are measured in accordance with IFRS\ue61f2 Share-based Payment; and \u00b7 assets (or disposal groups) that are classified as held for sale in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see paragraph below), or additional assets or liabilities are recognized, to re\ufb02ect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date.The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date, and does not exceed twelve months.GoodwillGoodwill arising in a business combination is recognized as an asset at the date that control is obtained (the acquisition date). Goodwill is measured as the excess of the sum of:(a) the consideration transferred;(b) the amount of any non-controlling interests in the acquiree; and(c) in a business combination achieved in stages, the acquisition date fair value of the previously held equity interest in the acquiree, over the share acquired by the Group in the fair value of the entity\u2019s identifiable net assets at the acquisition date.Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-100-6": {
"value": "Accounting policyGeneralAcquisitions of subsidiaries are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of acquisition) of assets transferred and liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized in profit or loss as incurred.Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in the fair value of contingent consideration classified as an asset or liability are accounted for in accordance with relevant IFRSs, generally through profit or loss.Where a business combination is achieved in stages, the Group\u2019s previously held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. The date the Group obtains control) and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.The acquiree\u2019s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS\ue61f3 Business Combinations are recognized and measured at their fair value at the acquisition date, except that: \u00b7 deferred tax assets or liabilities, and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with IAS\ue61f12 Income Taxes, and IAS\ue61f19 Employee Benefits, respectively; \u00b7 liabilities or equity instruments related to the replacement by the Group of an acquiree\u2019s share-based payment awards are measured in accordance with IFRS\ue61f2 Share-based Payment; and \u00b7 assets (or disposal groups) that are classified as held for sale in accordance with IFRS\ue61f5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see paragraph below), or additional assets or liabilities are recognized, to re\ufb02ect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date.The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date, and does not exceed twelve months.GoodwillGoodwill arising in a business combination is recognized as an asset at the date that control is obtained (the acquisition date). Goodwill is measured as the excess of the sum of:(a) the consideration transferred;(b) the amount of any non-controlling interests in the acquiree; and(c) in a business combination achieved in stages, the acquisition date fair value of the previously held equity interest in the acquiree, over the share acquired by the Group in the fair value of the entity\u2019s identifiable net assets at the acquisition date.Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-101-8": {
"value": "GoodwillGoodwill arising in a business combination is recognized as an asset at the date that control is obtained (the acquisition date). Goodwill is measured as the excess of the sum of:(a) the consideration transferred;(b) the amount of any non-controlling interests in the acquiree; and(c) in a business combination achieved in stages, the acquisition date fair value of the previously held equity interest in the acquiree, over the share acquired by the Group in the fair value of the entity\u2019s identifiable net assets at the acquisition date.Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-102-10": {
"value": "Goodwill is not amortized but is tested for impairment on an annual basis, and more frequently if there are any impairment triggers identified.For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units (or groups of cash-generating units) in accordance with IAS\ue61f36 Impairment of Assets.A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash in\ufb02ows that are largely independent of the cash in\ufb02ows from other group(s) of assets.These tests consist of comparing the carrying amount of the assets or (groups of) CGUs with their recoverable amount. The recoverable amount of an asset or a (group of) CGU(s) is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized on goodwill shall not be reversed in a subsequent period.Assets held for sale include their related goodwill.On disposal of an operation within a CGU to which goodwill has been allocated, the goodwill associated with the operation disposed of is included in the determination of the profit or loss on disposal. It is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained, unless another method better re\ufb02ects the goodwill associated with the operation disposed of.Accounting policyGeneralAt the end of each reporting period, the Group reviews whether there is any indication that assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are allocated to individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified.The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate. \ue61f Future cash \ufb02ows are adjusted for risks not incorporated into the discount rate.\ue61fIf the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.When an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. An impairment loss recognized for goodwill shall not be reversed in a subsequent period.Assets other than non-current assets held for saleIn accordance with IAS 36 Impairment of Assets, the recoverable amount of property, plant and equipment, intangible assets, right-of-use assets, CGUs or groups of CGUs, including goodwill, and equity method investees corresponds to the higher of their fair value less costs of disposal, and their value in use. The latter equals the present value of the future cash \ufb02ows expected to be derived from each asset, CGU or group of CGUs, and equity method investees and is determined using the following inputs: \u00b7 business plan approved by management based on growth and profitability assumptions, taking into account past performances, forecast changes in the economic environment and expected market developments, including opportunity and risks resulting from climate change (taking into account the Solvay One Planet strategy - see note Climate change in the IFRS general accounting policies) and environmental regulations such as products phasing out. For further details, refer to the Risk Management Section. Such business plan generally covers five\ue61fyears, unless management is confident that projections over a longer period are reliable; \u00b7 consideration of a terminal value determined based on the cash \ufb02ows obtained by extrapolating the cash \ufb02ows of the last years of the business plan referred to above, affected by a long-term growth rate deemed appropriate for the activity and the location of the assets; \u00b7 discounting of expected cash \ufb02ows at a rate determined using the weighted average cost of capital formula.Discount rateWeighted average cost of capital (WACC) was computed using the same methodology applied in previous years after extensive benchmarking with Peers: \u00b7 A short term WACC of 6.6% was utilized in 2022 (5.1% in 2021) to discount the expected cash \ufb02ows of the initial four years, computed based on prevailing discount rates; \u00b7 A long term WACC of 6.5% was utilized in 2022 (6.8% in 2021) to discount the expected cash \ufb02ows of the fifth year and the Terminal Value, and is a rolling 8-year average of historical short term WACCs. These WACCs are in the low range of the observed Peers\u2019 WACC estimates.Long-term growth ratesThe long-term growth rates used in 2022 are based: \u00b7 on the comprehensive review of the entire business portfolio performed in 2019 with the definition of the G.R.O.W. Strategy when each CGU was assigned to one of three agile business segments that became effective as from 2020: Materials, Chemicals and Solutions, with different growth opportunities, consistent with the long term growth rates of the market they serve and the Group competitive position in those markets; and \u00b7 on the long term growth potential for Composite Materials and Technology Solutions assessed during the 2020 impairment test which remain very strong.After reassessment of the long-term growth prospects the Group concluded that the prior year rates are still applicable and were thus set at: \u00b7 2% for the Specialty Polymers CGU and 3% for the Composite Materials CGU; \u00b7 0% in the Segment Chemicals, except for Soda Ash and Peroxides, for which a 1% rate was set; and \u00b7 1% for the other CGUs in the Segment Solutions (excluding Technology Solutions, for which 1.5% was used, and Oil & Gas).Other key assumptions are specific to each CGU (utility price, volumes, margin, etc.) and are based on approved budgets and mid-term plans. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-106-5": {
"value": "NOTE\ue61fF21 PROPERTY, PLANT AND EQUIPMENTAccounting policyGeneralProperty, plant and equipment are tangible items that: \u00b7 are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and \u00b7 are expected to be used during more than one period.The items of property, plant and equipment owned by the Group are recognized as property, plant and equipment when the following conditions are satisfied: \u00b7 it is probable that the future economic benefits associated with the asset will \ufb02ow to the Group; \u00b7 the cost of the asset can be measured reliably.Items of property, plant and equipment are initially measured at cost. The cost of an item of property, plant and equipment comprises its purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. If applicable, the cost comprises borrowing costs during the construction period.After initial recognition, items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. The components of an item of property, plant and equipment with different useful lives are depreciated separately. Land is not depreciated. The estimated useful lives, residual values and depreciation methods are reviewed at each year end, also taking into account the potential impact of climate change including the execution of the Solvay One Plant Strategy (see Note Climate Change in the IFRS general accounting policies). Any changes in estimates are accounted for prospectively.Buildings 30-40 yearsIT equipment 3-5 yearsMachinery and equipment 10-20 yearsTransportation equipment 5-20 yearsDepreciation expense is included in the consolidated income statement within cost of goods sold, administrative costs, and R&D costs.The asset is tested for impairment if there is a trigger for impairment (see note F24 Impairment).Items of property, plant and equipment are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an item of property, plant and equipment is recognized in profit or loss at the moment of derecognition.Subsequent expenditureSubsequent expenditure related to items of property, plant and equipment is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred. Subsequent expenditure incurred for the replacement of a component of an item of property, plant and equipment is only recognized as an asset when it satisfies the recognition criteria mentioned above. The carrying amount of replaced items is derecognized.Repair and maintenance costs are recognized in the consolidated income statement as incurred.Regarding its industrial activity, Solvay incurs expenditure for major repairs over several years for most of its sites. The purpose of this expenditure is to maintain the proper working order of certain installations without altering their useful life. This expenditure is considered as a specific component of the item of property, plant and equipment and is depreciated over the period during which the economic benefits are expected to be obtained, i.e. the major repairs\u2019 intervals.Dismantling and restoration costsDismantling and restoration costs are included in the cost of an item of property, plant and equipment if the Group has a legal or constructive obligation to dismantle or restore. They are depreciated over the useful life of the items to which they pertain.Generally, Solvay\u2019s obligation to dismantle and/or restore its operating sites is only likely to arise upon the discontinuation of a site\u2019s activities. A provision for dismantling of discontinued sites or installations is recognized when there is a legal obligation (due to a request or injunction from the relevant authorities), or when there is no technical alternative than to dismantle, so to ensure the safety compliance of the discontinued sites or installations.In \u20ac million Land and Fixtures and Other tan-Property, plant and equipment Totalbuildingsequipmentgible assetsunder constructionGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 2,819 9,699 414 405 13,337Additions 18 88 13 452 571Disposals and closures -16 -101 -29 0 -146Increase through business combinations 4 2 0 0 7Currency translation differences 101 348 13 24 486Other 15 151 7 -193 -20December 31, 2021 2,941 10,187 418 688 14,235Additions 28 103 8 715 854Disposals and closures -28 -132 -19 0 -179Increase through business combinations 0 0 0 0 0Currency translation differences 44 206 8 15 273Other 35 284 11 -385 -55December 31, 2022 3,021 10,648 425 1,033 15,128Accumulated depreciation \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -1,478 -6,813 -329 \ue61f -8,620Depreciation -73 -436 -27 \ue61f -535Impairment -5 -4 0 \ue61f -9Reversal of impairment 1 0 0 \ue61f 1Disposals and closures 12 101 29 \ue61f 143Currency translation differences -43 -226 -10 \ue61f -278Other 5 2 0 \ue61f 7December 31, 2021 -1,580 -7,375 -337 \ue61f -9,291Depreciation -80 -464 -27 \ue61f -570Impairment 0 -6 0 \ue61f -6Reversal of impairment 8 21 0 \ue61f 29Disposals and closures 26 130 19 \ue61f 175Currency translation differences -25 -151 -7 \ue61f -183Other 3 26 0 \ue61f 30December 31, 2022 -1,648 -7,818 -351 \ue61f -9,816Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 1,342 2,886 85 405 4,717December 31, 2021 1,361 2,813 81 688 4,943December 31, 2022 1,373 2,830 75 1,033 5,311The line \u201cOther\u201d mainly includes changes following portfolio transactions and reclassification of property, plant and equipment under construction to the appropriate categories when they are ready for intended use. Cash \ufb02ows related to major investments are disclosed in note F16 Cash \ufb02ows from investing activities \u2013 acquisition/disposal of\ue61fassets\ue61fand\ue61finvestments. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-108-6": {
"value": "Items of property, plant and equipment are initially measured at cost. The cost of an item of property, plant and equipment comprises its purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. If applicable, the cost comprises borrowing costs during the construction period.After initial recognition, items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. The components of an item of property, plant and equipment with different useful lives are depreciated separately. Land is not depreciated. The estimated useful lives, residual values and depreciation methods are reviewed at each year end, also taking into account the potential impact of climate change including the execution of the Solvay One Plant Strategy (see Note Climate Change in the IFRS general accounting policies). Any changes in estimates are accounted for prospectively.Buildings 30-40 yearsIT equipment 3-5 yearsMachinery and equipment 10-20 yearsTransportation equipment 5-20 yearsDepreciation expense is included in the consolidated income statement within cost of goods sold, administrative costs, and R&D costs.The asset is tested for impairment if there is a trigger for impairment (see note F24 Impairment).Items of property, plant and equipment are derecognized from the consolidated statement of financial position on disposal or when no future economic benefits are expected from their use or disposal. The gain or loss arising from the derecognition of an item of property, plant and equipment is recognized in profit or loss at the moment of derecognition.Subsequent expenditureSubsequent expenditure related to items of property, plant and equipment is capitalized only if it is probable that it will increase the future economic benefits associated with the specific asset. Other expenditure is expensed as incurred. Subsequent expenditure incurred for the replacement of a component of an item of property, plant and equipment is only recognized as an asset when it satisfies the recognition criteria mentioned above. The carrying amount of replaced items is derecognized.Repair and maintenance costs are recognized in the consolidated income statement as incurred.Regarding its industrial activity, Solvay incurs expenditure for major repairs over several years for most of its sites. The purpose of this expenditure is to maintain the proper working order of certain installations without altering their useful life. This expenditure is considered as a specific component of the item of property, plant and equipment and is depreciated over the period during which the economic benefits are expected to be obtained, i.e. the major repairs\u2019 intervals.Dismantling and restoration costsDismantling and restoration costs are included in the cost of an item of property, plant and equipment if the Group has a legal or constructive obligation to dismantle or restore. They are depreciated over the useful life of the items to which they pertain.Generally, Solvay\u2019s obligation to dismantle and/or restore its operating sites is only likely to arise upon the discontinuation of a site\u2019s activities. A provision for dismantling of discontinued sites or installations is recognized when there is a legal obligation (due to a request or injunction from the relevant authorities), or when there is no technical alternative than to dismantle, so to ensure the safety compliance of the discontinued sites or installations.Borrowing costsBorrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.All other borrowing costs are recognized in profit or loss in the period in which they are incurred.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-110-7": {
"value": "Dismantling and restoration costsDismantling and restoration costs are included in the cost of an item of property, plant and equipment if the Group has a legal or constructive obligation to dismantle or restore. They are depreciated over the useful life of the items to which they pertain.Generally, Solvay\u2019s obligation to dismantle and/or restore its operating sites is only likely to arise upon the discontinuation of a site\u2019s activities. A provision for dismantling of discontinued sites or installations is recognized when there is a legal obligation (due to a request or injunction from the relevant authorities), or when there is no technical alternative than to dismantle, so to ensure the safety compliance of the discontinued sites or installations.Environmental remediation costsEnvironmental liabilities are mainly related to non-ongoing activities (shut-down sites, discontinued activities or divested activities where Solvay maintains certain commitments) and, to a lower extent, to ongoing activities (see comments below).An environmental provision is recognized, in accordance to IAS 37, when there is a current legal or constructive obligation resulting from past events which will result in a probable out\ufb02ow of resources (expenses / cash outs) to settle it and for which a reliable estimate of such out\ufb02ows and timing can be made.The environmental expenses encompass, but are not limited to, the following key matters \u00b7 Sampling and analytical costs for soil and ground water monitoring \u00b7 Cost related to dismantling when required to meet a remediation or permit obligation \u00b7 Asbestos removal when obligated by regulation \u00b7 Environmental investigations and studies (Risk Assessments, Phase I and II soil and groundwater) The closing amount of the environmental provisions is based on the net present value of the future cash \ufb02ows needed, for current and future years, to settle remediation obligations. Forecast expenditures are based on external consultant estimates, where appropriate and possible. Future expenditures are forecast and revised biannually and validated quarterly by Solvay finance and suitably qualified industrial experts led by the Group Environmental Rehabilitation Director and benefit from inputs of legal department staff for the evolution of Environmental Regulations.In the absence of probable obligations, a contingent liability may be disclosed to represent the future possible liability. In some cases, contingent liabilities cannot be quantified. See Note F36 Contingent assets, liabilities and financial guarantees.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDecommissioningRestorationAndRehabilitationProvisionsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-113-3": {
"value": "Accounting policyDefinition of a lease At inception of a contract, which generally coincides with the date the contract is signed, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.An asset is typically identified by being explicitly specified in a contract. However, an asset can also be identified by being implicitly specified at the time that the asset is made available for use by the customer. If the supplier has a substantive substitution right, then the asset is not identified. A substantive substitution right means that (a) the supplier has the practical ability to substitute the asset throughout the period of use, and (b) would economically benefit from doing so. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether, throughout the period of use, it has: \u00b7 the right to obtain substantially all of the economic benefits from use of the identified asset; and \u00b7 the right to direct the use of the identified asset. This is generally the case when the Group has the decision-making rights regarding how and for what purpose the asset is used. The Group\u2019s leased assets relate mainly to buildings, transportation equipment, and industrial equipment.Lease termThe Group determines the lease term as the non-cancellable period of a lease, together with both: \u00b7 periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and \u00b7 periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option.In its assessment, the Group considers the impact of the following factors (non-exhaustive): \u00b7 contractual terms and conditions for the optional periods, compared with market rates; \u00b7 significant leasehold improvements undertaken (or expected to be undertaken) over the term of the contract; \u00b7 costs relating to the termination of the lease, including relocation costs, costs of identifying another underlying asset suitable for the Group\u2019s needs, costs of integrating a new asset into the Group\u2019s operations, and termination penalties; \u00b7 the importance of that underlying asset to the Group\u2019s operations, including the availability of suitable alternatives; \u00b7 conditionality associated with exercising the option (i.e. When the option can be exercised only if one or more conditions are met), and the likelihood that those conditions will exist; and \u00b7 past practice.Right-of-use asset and lease liabilityThe Group recognizes a right-of-use asset and a lease liability at the lease commencement date, which is the date that the lessor makes the asset available for use by the Group except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. The right-of-use assets are presented separately in the consolidated statement of financial position, and the lease liabilities are presented as part of financial debt.NOTE F22 RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONSRight-of-use assetThe right-of-use asset is initially measured at cost, which comprises: \u00b7 the amount of the initial measurement of the lease liability; \u00b7 any lease payments made at or before the commencement date, less any lease incentive received; and \u00b7 any initial direct costs incurred by the Group.After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any accumulated impairment losses. Right-of-use assets are depreciated using the straight-line depreciation method, from the commencement date to (a) the end of the useful life of the underlying asset, in case the lease transfers ownership of the underlying asset to the Group by the end of the lease term, or the lease contains a purchase option that the Group is reasonably certain to exercise, or (b) the earlier of the end of the useful life and the end of the lease term, in all other cases. Lease liabilityThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the respective Group entity\u2019s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise the following: \u00b7 fixed payments, less any lease incentives receivable; \u00b7 variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; \u00b7 amounts expected to be payable by the Group under residual value guarantees; \u00b7 the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and \u00b7 payments of penalties for early terminating the lease, if the Group is reasonably certain to exercise an option to early terminate the lease.Service components (e.g. Utilities, maintenance, insurance, \u2026) are excluded from the measurement of the lease liability. After the commencement date, the lease liability is measured by: \u00b7 increasing the carrying amount to re\ufb02ect interest on the lease liability; \u00b7 reducing the carrying amount to re\ufb02ect the lease payments made; and \u00b7 remeasuring the carrying amount to re\ufb02ect any reassessment or lease modifications, or to re\ufb02ect the impact from a revised index or rate.Leasing of PalladiumThe Group uses palladium, a precious metal, for certain of its operations. Next to purchasing this palladium, the Group also enters into various \u201cleasing\u201d agreements with financial institutions that give the Group the right to use palladium for a certain period and then return it at the end of the \u201clease\u201d. Based on our analysis of these agreements, these contracts are not in the scope of IFRS 16 Leases or IFRS 9 Financial Instruments. Due to the lack of clear IFRS guidance, the Group applied judgment to determine whether these rights and obligations shall be accounted for on a gross or a net basis. Considering that the Group bears no price risk during the \u2018lease\u2019 term and is not in full control of the asset (in accordance with the IFRS Conceptual Framework), the Group believes a net presentation gives a better view on the economic substance of the transaction. As a result, only accruals are recorded for the production losses and regeneration costs and the \u201clease\u201d fee is recognized within cost of sales. At the end of 2022, the total (gross) value of palladium leased still to be returned amounted to \u20ac59 million (end of 2021: \u20ac50 million) valued at the year-end closing rate.In \u20ac million Land Buildings Transpor-Industrial Other tangible Totaltation equipmentassetsequipmentGross carrying amount \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 18 227 207 159 9 620Additions 0 29 23 82 1 134Disposals and closures 0 -1 -3 0 0 -4Currency translation differences 0 9 11 7 0 27Other 0 3 10 3 1 17Transfer to assets held for sale 0 0 0 0 0 1December 31, 2021 19 266 248 251 11 795Additions 0 8 46 27 5 86Disposals and closures 0 -38 -28 -11 -3 -79Currency translation differences 0 7 8 5 0 21Other 0 7 15 5 1 28Transfer to assets held for sale 0 0 0 0 0 0December 31, 2022 19 250 289 279 16 852Accumulated depreciation \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 -2 -77 -83 -47 -6 -215Depreciation -1 -36 -42 -26 -3 -107Impairment 0 1 3 0 0 4Currency translation differences 0 -4 -5 -3 0 -11December 31, 2021 -4 -115 -127 -75 -8 -329Depreciation -1 -33 -46 -34 -3 -117Impairment 0 -3 0 0 0 -3Disposals and closures 0 38 28 11 3 79Currency translation differences 0 -3 -4 -2 0 -9December 31, 2022 -5 -115 -148 -100 -9 -378Net carrying amount \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fDecember 31, 2020 16 150 124 112 4 405December 31, 2021 15 151 121 176 3 466December 31, 2022 14 134 141 178 6 474The Group primarily leases buildings that include office buildings, and warehouses. Those leases are generally long-term leases and may include extension options. Next, the Group leases transportation equipment that mainly consists of railcars and containers to transport the Group\u2019s products. Industrial equipment mainly relates to utility assets. In 2022, additions include \u20ac27 million for industrial equipment, \u20ac23 million for railcars and \u20ac17 million for containers.Lease contracts generally are negotiated by the local teams, and contain a wide range of different terms and conditions. Many lease contracts contain extension options and/or early termination options to provide the Group with operational \ufb02exibility. Such options are taken into account when determining the lease term and the lease liability when it is reasonably certain that they will be exercised. If the Group exercised its extension options not currently included in the lease liability, the present value of additional payments would amount to \u20ac\ue61f100\ue61fmillion at December 31, 2022 (\u20ac143 million at December 31, 2021). Lease contracts signed not yet commenced amount to \u20ac137 million at December 31, 2022 (\u20ac135 million for 2021) and mainly relate to a second waste wood boiler, steam turbine and auxiliaries in Germany, industrial equipment in France and rail cars in the United States. Total cash out\ufb02ows for leases amount to \u20ac134 million for 2022, of which \u20ac113 million related to payment of lease liabilities and \u20ac21 million of interest expenses. Information on the corresponding lease liabilities (\u20ac519 million) can be found in the note F33 Net indebtedness. Information on the finance expense related to lease liabilities can be found in note F6 Net financial charges. ",
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"pp-value-118-3": {
"value": "NOTE\ue61fF23 INVESTMENTS IN ASSOCIATES AND JOINT VENTURESThe list of associates and joint ventures is available in the note F40 List of companies included in the consolidation scope.The associates and joint ventures not classified as held for sale/discontinued operations are accounted for under the equity method of accounting.December 31, 2022December 31, 2021\ue61fIn \u20ac millionAssociates Joint Total \ue61f Associates Joint TotalventuresventuresInvestments in associates and joint ventures 18 790 809 \ue61f 18 619 637Earnings from associates and joint ventures 1 170 171 \ue61f 2 157 159INVESTMENTS IN ASSOCIATESIn \u20ac million 2022 2021January 1 18 16Profit for the year 1 2Dividends received -1 -2Currency translation differences 0 1December 31 18 18The tables below present the summary of the statement of financial position and income statement of the associates as if they were proportionately consolidated.In \u20ac million December 31, 2022 December 31, 2021Statement of financial position \ue61f\ue61fNon-current assets 14 14Current assets 17 16Cash and cash equivalents 3 3Non-current liabilities 2 2Non-current financial debt 1 1Current liabilities 11 10Current financial debt 2 2Investments in associates 18 18\ue61f \ue61f \ue61fIncome statement 2022 2021Sales 39 33Depreciation and amortization 1 -1Interest on loans and short term deposits 0 0Profit for the year from continuing operations 2 2Profit for the year 2 2\ue61f \ue61f \ue61fTotal comprehensive income 2 3\ue61f \ue61f \ue61fDividends received 1 1INVESTMENTS IN JOINT VENTURESIn \u20ac million 2022 2021January 1 619 479Additions 0 8Capital increase / (decrease) -5 0Profit for the year 170 157Dividends received -18 -127Currency translation differences 24 34Impairment reversal 0 67Other 1 1December 31 790 619In 2022 and 2021, the currency translation differences mainly relate to the evolution of the Russian ruble, of the Brazilian real and of the Indian rupee compared to the euro. In 2021, the impairment reversal of \u20ac67 million and the dividend received of \u20ac127 million mainly concern the joint venture Rusvinyl.In accordance with IFRS 11 Joint Arrangements, the Group has assessed whether the changes in the legal and operating environment of Russia have impacted the ability to exercise its joint control over Rusvinyl. There are no changes in facts and circumstances that may significantly limit the Group\u2019s ability to exercise its rights or governance with respect to Rusvinyl.The tables below present the summary of the statement of financial position and income statement of the material joint ventures as if they were proportionately consolidated.December 31, Rusvinyl Peroxidos Strata - Shandong Hindustan Aqua EECO Shinsol Cogenera-2022OOOdo Brasil Solvay Huatai Gum & Pharma Holding Advanced tion Rosi-LtdaAdvanced Interox Chemicals Groupand sub- ChemicalsgnanoMaterial Chemical LtdsidiariesJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership 50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4%interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 334 73 35 4 5 15 9 \ue61f 4assetsCurrent assets 147 89 10 12 153 9 13 8 2Cash and cash 113 39 9 9 138 6 4 8 2equivalentsNon-current 30 6 -0 - 5 1 6 \ue61f 3liabilitiesNon-current 6 3 -0 0 0 0 6 \ue61f 3financial debtCurrent liabilities 20 38 1 5 7 2 7 \ue61f 0Current financial 1 7 - 0 0 0 6 \ue61f 0debtInvestments in 431 118 43 11 146 21 9 8 3joint ventures\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f2022 income statement\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fSales 304 145 12 20 37 15 0 \ue61f 0Depreciation and -27 -5 0 0 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 7 4 0 0 6 0 0 \ue61f 0depositsIncome taxes -29 -16 0 -1 -1 -1 -1 \ue61f 0Profit for the year from 117 33 9 2 6 1 2 \ue61f 0continuing operationsProfit for the 117 33 9 2 6 1 2 \ue61f 0yearOther comprehensive 22 9 0 0 -8 0 0 \ue61f \ue61fincomeTotal comprehensive 138 42 9 2 -2 0 0 \ue61f 0incomeDividends 0 12 0 2 2 -1 0 \ue61f 0receivedOther comprehensive income mainly comprises the currency translation differences. December 31, Rusvinyl Peroxidos Strata - Shandong Hindus-Aqua EECO Hold-Shinsol Cogenera-2021OOOdo Brasil Solvay Huatai tan Gum Pharma ing and sub-Advanced tion Rosi-LtdaAdvanced Interox & Chemi-GroupsidiariesChemicalsgnanoMaterial Chemical cals LtdJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4% interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 324 61 29 4 5 16 10 \ue61f 5assetsCurrent assets 82 58 10 12 156 12 15 8 4Cash and cash 57 25 10 9 138 6 2 8 3equivalentsNon-current 50 7 0 - 5 4 8 \ue61f 4liabilitiesNon-current 30 4 0 0 0 0 8 \ue61f 4financial debtCurrent liabilities 64 26 3 5 8 1 9 \ue61f 1Current financial 39 4 - 0 0 0 8 \ue61f 1debtInvestments in 292 87 36 11 149 23 8 8 4joint ventures2021 income \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fstatementSales 276 88 13 22 22 18 0 \ue61f 0Depreciation and -22 -4 0 -1 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 2 1 0 0 7 0 1 \ue61f 0depositsIncome taxes -28 -11 0 -1 -2 -1 0 \ue61f 0Profit for the year from con-111 26 9 2 5 1 1 \ue61f 0tinuing opera-tionsProfit for the 111 26 9 2 5 1 1 \ue61f 0yearOther comprehensive 21 2 0 1 8 2 0 \ue61f \ue61fincomeTotal comprehensive 132 28 9 3 14 3 0 \ue61f 0incomeDividends re-103 15 0 1 2 -1 0 \ue61f 0ceivedOther comprehensive income mainly comprises the currency translation differences. NOTE\ue61fF40LIST OF COMPANIES INCLUDED IN THE CONSOLIDATION SCOPEThe Group consists of Solvay\ue61fSA and a total of 304 investees.Of these 304\ue61finvestees, 152 are fully consolidated, 7 are proportionately consolidated and 23 are accounted for under the equity method, whilst the other 122 do not meet the\ue61fcriteria of significance.In accordance with the concept of materiality, certain companies (Other Investments), which are insignificant, have not been included in the consolidation scope. They are measured at cost and tested for impairment on an annual basis, which is considered a good proxy of their fair value. For more information, refer to Principles of consolidation.List of companies entering or leaving the consolidation scopeCompanies entering the consolidation scopeCountryCompanyCommentsPORTUGAL Solvay Biotecnologia Portugal LDA, Carnaxide New companyLUXEMBOURG Renestia S.A., Capellen New companyUNITED KINGDOM Oldbury Energy Solutions UK Ltd, Oldbury Meets the consolidation criteriaUNITED STATES Energy Solutions US LLC, Breckenridge, TX Meets the consolidation criteriaCompanies leaving the consolidation scopeCountryCompanyCommentsLATVIA Solvay Business Services Latvia SIA, Riga LiquidatedUNITED KINGDOM Penso Holdings Ltd, Coventry LiquidatedUNITED STATES Solvay Soda Ash Expansion JV, Houston, Texas Merged into American Soda LLC\ue61f Solvay Soda Ash Joint Venture, Houston, Texas Merged into American Soda LLCAssociatesCHINAQingdao Hiwin Solvay Chemicals Co. Ltd, Qingdao 30FRANCE \ue61fGIE Chime Salindres, Salindres 50INDONESIA \ue61fSolvay Manyar P.T., Gresik 50MEXICO \ue61fSilicatos y Derivados S.A. DE C.V., Estado de Mexico 20",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-118-4": {
"value": "NOTE\ue61fF23 INVESTMENTS IN ASSOCIATES AND JOINT VENTURESThe list of associates and joint ventures is available in the note F40 List of companies included in the consolidation scope.The associates and joint ventures not classified as held for sale/discontinued operations are accounted for under the equity method of accounting.December 31, 2022December 31, 2021\ue61fIn \u20ac millionAssociates Joint Total \ue61f Associates Joint TotalventuresventuresInvestments in associates and joint ventures 18 790 809 \ue61f 18 619 637Earnings from associates and joint ventures 1 170 171 \ue61f 2 157 159INVESTMENTS IN ASSOCIATESIn \u20ac million 2022 2021January 1 18 16Profit for the year 1 2Dividends received -1 -2Currency translation differences 0 1December 31 18 18The tables below present the summary of the statement of financial position and income statement of the associates as if they were proportionately consolidated.In \u20ac million December 31, 2022 December 31, 2021Statement of financial position \ue61f\ue61fNon-current assets 14 14Current assets 17 16Cash and cash equivalents 3 3Non-current liabilities 2 2Non-current financial debt 1 1Current liabilities 11 10Current financial debt 2 2Investments in associates 18 18\ue61f \ue61f \ue61fIncome statement 2022 2021Sales 39 33Depreciation and amortization 1 -1Interest on loans and short term deposits 0 0Profit for the year from continuing operations 2 2Profit for the year 2 2\ue61f \ue61f \ue61fTotal comprehensive income 2 3\ue61f \ue61f \ue61fDividends received 1 1INVESTMENTS IN JOINT VENTURESIn \u20ac million 2022 2021January 1 619 479Additions 0 8Capital increase / (decrease) -5 0Profit for the year 170 157Dividends received -18 -127Currency translation differences 24 34Impairment reversal 0 67Other 1 1December 31 790 619In 2022 and 2021, the currency translation differences mainly relate to the evolution of the Russian ruble, of the Brazilian real and of the Indian rupee compared to the euro. In 2021, the impairment reversal of \u20ac67 million and the dividend received of \u20ac127 million mainly concern the joint venture Rusvinyl.In accordance with IFRS 11 Joint Arrangements, the Group has assessed whether the changes in the legal and operating environment of Russia have impacted the ability to exercise its joint control over Rusvinyl. There are no changes in facts and circumstances that may significantly limit the Group\u2019s ability to exercise its rights or governance with respect to Rusvinyl.The tables below present the summary of the statement of financial position and income statement of the material joint ventures as if they were proportionately consolidated.December 31, Rusvinyl Peroxidos Strata - Shandong Hindustan Aqua EECO Shinsol Cogenera-2022OOOdo Brasil Solvay Huatai Gum & Pharma Holding Advanced tion Rosi-LtdaAdvanced Interox Chemicals Groupand sub- ChemicalsgnanoMaterial Chemical LtdsidiariesJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership 50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4%interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 334 73 35 4 5 15 9 \ue61f 4assetsCurrent assets 147 89 10 12 153 9 13 8 2Cash and cash 113 39 9 9 138 6 4 8 2equivalentsNon-current 30 6 -0 - 5 1 6 \ue61f 3liabilitiesNon-current 6 3 -0 0 0 0 6 \ue61f 3financial debtCurrent liabilities 20 38 1 5 7 2 7 \ue61f 0Current financial 1 7 - 0 0 0 6 \ue61f 0debtInvestments in 431 118 43 11 146 21 9 8 3joint ventures\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f2022 income statement\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fSales 304 145 12 20 37 15 0 \ue61f 0Depreciation and -27 -5 0 0 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 7 4 0 0 6 0 0 \ue61f 0depositsIncome taxes -29 -16 0 -1 -1 -1 -1 \ue61f 0Profit for the year from 117 33 9 2 6 1 2 \ue61f 0continuing operationsProfit for the 117 33 9 2 6 1 2 \ue61f 0yearOther comprehensive 22 9 0 0 -8 0 0 \ue61f \ue61fincomeTotal comprehensive 138 42 9 2 -2 0 0 \ue61f 0incomeDividends 0 12 0 2 2 -1 0 \ue61f 0receivedOther comprehensive income mainly comprises the currency translation differences. December 31, Rusvinyl Peroxidos Strata - Shandong Hindus-Aqua EECO Hold-Shinsol Cogenera-2021OOOdo Brasil Solvay Huatai tan Gum Pharma ing and sub-Advanced tion Rosi-LtdaAdvanced Interox & Chemi-GroupsidiariesChemicalsgnanoMaterial Chemical cals LtdJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4% interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 324 61 29 4 5 16 10 \ue61f 5assetsCurrent assets 82 58 10 12 156 12 15 8 4Cash and cash 57 25 10 9 138 6 2 8 3equivalentsNon-current 50 7 0 - 5 4 8 \ue61f 4liabilitiesNon-current 30 4 0 0 0 0 8 \ue61f 4financial debtCurrent liabilities 64 26 3 5 8 1 9 \ue61f 1Current financial 39 4 - 0 0 0 8 \ue61f 1debtInvestments in 292 87 36 11 149 23 8 8 4joint ventures2021 income \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fstatementSales 276 88 13 22 22 18 0 \ue61f 0Depreciation and -22 -4 0 -1 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 2 1 0 0 7 0 1 \ue61f 0depositsIncome taxes -28 -11 0 -1 -2 -1 0 \ue61f 0Profit for the year from con-111 26 9 2 5 1 1 \ue61f 0tinuing opera-tionsProfit for the 111 26 9 2 5 1 1 \ue61f 0yearOther comprehensive 21 2 0 1 8 2 0 \ue61f \ue61fincomeTotal comprehensive 132 28 9 3 14 3 0 \ue61f 0incomeDividends re-103 15 0 1 2 -1 0 \ue61f 0ceivedOther comprehensive income mainly comprises the currency translation differences. NOTE\ue61fF29NON-CONTROLLING INTERESTS The amounts disclosed below are fully consolidated amounts and do not re\ufb02ect the impacts from elimination of intragroup transactions.At the end of 2022, the following subsidiaries have non-controlling interests totaling \u20ac40 million (out of a total of \u20ac61 million). In \u20ac million Zhejiang Lansol Solvay Hengchang Zhangjiagang Special Chem Non-controlling ownership interest 45% 30%Statement of financial position \ue61f \ue61fNon-current assets 28 17Current assets 47 72Non-current liabilities 2 1Current liabilities 17 34Income statement \ue61f \ue61fSales 93 168Profit for the year 9 36Other comprehensive income -3 -3Total comprehensive income 6 32Dividends paid to non-controlling interests 0 6Share of non-controlling interest in the profit for the year 4 11Accumulated non-controlling interests 24 16During 2022 the Group purchased the remaining outstanding ownership interest in Solvay Soda Ash (20% for US$ 120 million) and Solvay Special Chem Japan (33% for \u20ac3.55 million) with the difference between the consideration paid and the net book value of the non-controlling interest being recorded as a component of equity (loss of \u20ac88 million on the purchase of Solvay Soda Ash and a gain of \u20ac9.5 million on the purchase of Special Chem Japan).At the end of 2021, the following subsidiaries have non-controlling interests totaling \u20ac93 million (out of a total of \u20ac112 million).In \u20ac million Zhejiang Solvay Special Solvay Soda Solvay Hengchang LansolChem JapanAsh Zhangjiagang Special Chem Non-controlling ownership interest 45% 33% 20% 30%Statement of financial position \ue61f \ue61f \ue61f \ue61fNon-current assets 28 17 285 18Current assets 37 19 75 70Non-current liabilities 2 1 19 0Current liabilities 15 2 79 44Income statement \ue61f \ue61f \ue61f \ue61fSales 80 63 309 136Profit for the year 5 3 135 21Other comprehensive income 4 -1 -8 3Total comprehensive income 9 2 127 25Dividends paid to non-controlling interests 3 1 34 1Share of non-controlling interest in the profit for the year 2 1 27 6Accumulated non-controlling interests 21 11 49 12",
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"pp-value-118-5": {
"value": "NOTE\ue61fF23 INVESTMENTS IN ASSOCIATES AND JOINT VENTURESThe list of associates and joint ventures is available in the note F40 List of companies included in the consolidation scope.The associates and joint ventures not classified as held for sale/discontinued operations are accounted for under the equity method of accounting.December 31, 2022December 31, 2021\ue61fIn \u20ac millionAssociates Joint Total \ue61f Associates Joint TotalventuresventuresInvestments in associates and joint ventures 18 790 809 \ue61f 18 619 637Earnings from associates and joint ventures 1 170 171 \ue61f 2 157 159INVESTMENTS IN ASSOCIATESIn \u20ac million 2022 2021January 1 18 16Profit for the year 1 2Dividends received -1 -2Currency translation differences 0 1December 31 18 18The tables below present the summary of the statement of financial position and income statement of the associates as if they were proportionately consolidated.In \u20ac million December 31, 2022 December 31, 2021Statement of financial position \ue61f\ue61fNon-current assets 14 14Current assets 17 16Cash and cash equivalents 3 3Non-current liabilities 2 2Non-current financial debt 1 1Current liabilities 11 10Current financial debt 2 2Investments in associates 18 18\ue61f \ue61f \ue61fIncome statement 2022 2021Sales 39 33Depreciation and amortization 1 -1Interest on loans and short term deposits 0 0Profit for the year from continuing operations 2 2Profit for the year 2 2\ue61f \ue61f \ue61fTotal comprehensive income 2 3\ue61f \ue61f \ue61fDividends received 1 1INVESTMENTS IN JOINT VENTURESIn \u20ac million 2022 2021January 1 619 479Additions 0 8Capital increase / (decrease) -5 0Profit for the year 170 157Dividends received -18 -127Currency translation differences 24 34Impairment reversal 0 67Other 1 1December 31 790 619In 2022 and 2021, the currency translation differences mainly relate to the evolution of the Russian ruble, of the Brazilian real and of the Indian rupee compared to the euro. In 2021, the impairment reversal of \u20ac67 million and the dividend received of \u20ac127 million mainly concern the joint venture Rusvinyl.In accordance with IFRS 11 Joint Arrangements, the Group has assessed whether the changes in the legal and operating environment of Russia have impacted the ability to exercise its joint control over Rusvinyl. There are no changes in facts and circumstances that may significantly limit the Group\u2019s ability to exercise its rights or governance with respect to Rusvinyl.The tables below present the summary of the statement of financial position and income statement of the material joint ventures as if they were proportionately consolidated.December 31, Rusvinyl Peroxidos Strata - Shandong Hindustan Aqua EECO Shinsol Cogenera-2022OOOdo Brasil Solvay Huatai Gum & Pharma Holding Advanced tion Rosi-LtdaAdvanced Interox Chemicals Groupand sub- ChemicalsgnanoMaterial Chemical LtdsidiariesJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership 50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4%interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 334 73 35 4 5 15 9 \ue61f 4assetsCurrent assets 147 89 10 12 153 9 13 8 2Cash and cash 113 39 9 9 138 6 4 8 2equivalentsNon-current 30 6 -0 - 5 1 6 \ue61f 3liabilitiesNon-current 6 3 -0 0 0 0 6 \ue61f 3financial debtCurrent liabilities 20 38 1 5 7 2 7 \ue61f 0Current financial 1 7 - 0 0 0 6 \ue61f 0debtInvestments in 431 118 43 11 146 21 9 8 3joint ventures\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f2022 income statement\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fSales 304 145 12 20 37 15 0 \ue61f 0Depreciation and -27 -5 0 0 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 7 4 0 0 6 0 0 \ue61f 0depositsIncome taxes -29 -16 0 -1 -1 -1 -1 \ue61f 0Profit for the year from 117 33 9 2 6 1 2 \ue61f 0continuing operationsProfit for the 117 33 9 2 6 1 2 \ue61f 0yearOther comprehensive 22 9 0 0 -8 0 0 \ue61f \ue61fincomeTotal comprehensive 138 42 9 2 -2 0 0 \ue61f 0incomeDividends 0 12 0 2 2 -1 0 \ue61f 0receivedOther comprehensive income mainly comprises the currency translation differences. December 31, Rusvinyl Peroxidos Strata - Shandong Hindus-Aqua EECO Hold-Shinsol Cogenera-2021OOOdo Brasil Solvay Huatai tan Gum Pharma ing and sub-Advanced tion Rosi-LtdaAdvanced Interox & Chemi-GroupsidiariesChemicalsgnanoMaterial Chemical cals LtdJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4% interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 324 61 29 4 5 16 10 \ue61f 5assetsCurrent assets 82 58 10 12 156 12 15 8 4Cash and cash 57 25 10 9 138 6 2 8 3equivalentsNon-current 50 7 0 - 5 4 8 \ue61f 4liabilitiesNon-current 30 4 0 0 0 0 8 \ue61f 4financial debtCurrent liabilities 64 26 3 5 8 1 9 \ue61f 1Current financial 39 4 - 0 0 0 8 \ue61f 1debtInvestments in 292 87 36 11 149 23 8 8 4joint ventures2021 income \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fstatementSales 276 88 13 22 22 18 0 \ue61f 0Depreciation and -22 -4 0 -1 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 2 1 0 0 7 0 1 \ue61f 0depositsIncome taxes -28 -11 0 -1 -2 -1 0 \ue61f 0Profit for the year from con-111 26 9 2 5 1 1 \ue61f 0tinuing opera-tionsProfit for the 111 26 9 2 5 1 1 \ue61f 0yearOther comprehensive 21 2 0 1 8 2 0 \ue61f \ue61fincomeTotal comprehensive 132 28 9 3 14 3 0 \ue61f 0incomeDividends re-103 15 0 1 2 -1 0 \ue61f 0ceivedOther comprehensive income mainly comprises the currency translation differences. NOTE\ue61fF40LIST OF COMPANIES INCLUDED IN THE CONSOLIDATION SCOPEThe Group consists of Solvay\ue61fSA and a total of 304 investees.Of these 304\ue61finvestees, 152 are fully consolidated, 7 are proportionately consolidated and 23 are accounted for under the equity method, whilst the other 122 do not meet the\ue61fcriteria of significance.In accordance with the concept of materiality, certain companies (Other Investments), which are insignificant, have not been included in the consolidation scope. They are measured at cost and tested for impairment on an annual basis, which is considered a good proxy of their fair value. For more information, refer to Principles of consolidation.List of companies entering or leaving the consolidation scopeCompanies entering the consolidation scopeCountryCompanyCommentsPORTUGAL Solvay Biotecnologia Portugal LDA, Carnaxide New companyLUXEMBOURG Renestia S.A., Capellen New companyUNITED KINGDOM Oldbury Energy Solutions UK Ltd, Oldbury Meets the consolidation criteriaUNITED STATES Energy Solutions US LLC, Breckenridge, TX Meets the consolidation criteriaCompanies leaving the consolidation scopeCountryCompanyCommentsLATVIA Solvay Business Services Latvia SIA, Riga LiquidatedUNITED KINGDOM Penso Holdings Ltd, Coventry LiquidatedUNITED STATES Solvay Soda Ash Expansion JV, Houston, Texas Merged into American Soda LLC\ue61f Solvay Soda Ash Joint Venture, Houston, Texas Merged into American Soda LLCJoint venturesAUSTRALIAAqua Pharma Australia Pty Ltd, Armidale 50BELGIUM \ue61fEECO Holding SA, Brussels 33.3BRAZIL \ue61fPeroxidos do Brasil Ltda, Sao Paulo 69.4CANADA \ue61fAqua Pharma Inc, Saint John 50CHILE \ue61fAqua Pharma Chile Spa, Puerto Montt 50CHINA \ue61fShandong Huatai Interox Chemical Co. Ltd, Dongying 50INDIA \ue61fHindustan Gum & Chemicals Ltd, New Delhi 50IRELAND \ue61fAqua Pharma Ireland Ltd, Dublin 50ITALY \ue61fCogeneration Rosignano S.r.l., Rosignano 25.4Cogeneration Spinetta S.p.a., Bollate 33.3NORWAY \ue61fAqua Pharma Group A.S., Lillehammer 50Aqua Pharma A.S., Lillehammer 50Haugaland Shipping A.S., Haugesund 50RUSSIA \ue61fRusvinyl OOO, Moscow 50TAIWAN \ue61fShinsol Advanced Chemicals Corporation, New Taipei 51UNITED ARAB EMIRATES \ue61fStrata - Solvay Advanced Materials Joint-Venture LLC, Al Ain 50UNITED KINGDOM \ue61fAqua Pharma Technical Ltd, Inverness 50Aqua Pharma Ltd, Inverness 50UNITED STATES \ue61fAqua Pharma U.S. Inc, Kirkland 25",
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"value": "NOTE\ue61fF23 INVESTMENTS IN ASSOCIATES AND JOINT VENTURESThe list of associates and joint ventures is available in the note F40 List of companies included in the consolidation scope.The associates and joint ventures not classified as held for sale/discontinued operations are accounted for under the equity method of accounting.December 31, 2022December 31, 2021\ue61fIn \u20ac millionAssociates Joint Total \ue61f Associates Joint TotalventuresventuresInvestments in associates and joint ventures 18 790 809 \ue61f 18 619 637Earnings from associates and joint ventures 1 170 171 \ue61f 2 157 159INVESTMENTS IN ASSOCIATESIn \u20ac million 2022 2021January 1 18 16Profit for the year 1 2Dividends received -1 -2Currency translation differences 0 1December 31 18 18The tables below present the summary of the statement of financial position and income statement of the associates as if they were proportionately consolidated.In \u20ac million December 31, 2022 December 31, 2021Statement of financial position \ue61f\ue61fNon-current assets 14 14Current assets 17 16Cash and cash equivalents 3 3Non-current liabilities 2 2Non-current financial debt 1 1Current liabilities 11 10Current financial debt 2 2Investments in associates 18 18\ue61f \ue61f \ue61fIncome statement 2022 2021Sales 39 33Depreciation and amortization 1 -1Interest on loans and short term deposits 0 0Profit for the year from continuing operations 2 2Profit for the year 2 2\ue61f \ue61f \ue61fTotal comprehensive income 2 3\ue61f \ue61f \ue61fDividends received 1 1INVESTMENTS IN JOINT VENTURESIn \u20ac million 2022 2021January 1 619 479Additions 0 8Capital increase / (decrease) -5 0Profit for the year 170 157Dividends received -18 -127Currency translation differences 24 34Impairment reversal 0 67Other 1 1December 31 790 619In 2022 and 2021, the currency translation differences mainly relate to the evolution of the Russian ruble, of the Brazilian real and of the Indian rupee compared to the euro. In 2021, the impairment reversal of \u20ac67 million and the dividend received of \u20ac127 million mainly concern the joint venture Rusvinyl.In accordance with IFRS 11 Joint Arrangements, the Group has assessed whether the changes in the legal and operating environment of Russia have impacted the ability to exercise its joint control over Rusvinyl. There are no changes in facts and circumstances that may significantly limit the Group\u2019s ability to exercise its rights or governance with respect to Rusvinyl.The tables below present the summary of the statement of financial position and income statement of the material joint ventures as if they were proportionately consolidated.December 31, Rusvinyl Peroxidos Strata - Shandong Hindustan Aqua EECO Shinsol Cogenera-2022OOOdo Brasil Solvay Huatai Gum & Pharma Holding Advanced tion Rosi-LtdaAdvanced Interox Chemicals Groupand sub- ChemicalsgnanoMaterial Chemical LtdsidiariesJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership 50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4%interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 334 73 35 4 5 15 9 \ue61f 4assetsCurrent assets 147 89 10 12 153 9 13 8 2Cash and cash 113 39 9 9 138 6 4 8 2equivalentsNon-current 30 6 -0 - 5 1 6 \ue61f 3liabilitiesNon-current 6 3 -0 0 0 0 6 \ue61f 3financial debtCurrent liabilities 20 38 1 5 7 2 7 \ue61f 0Current financial 1 7 - 0 0 0 6 \ue61f 0debtInvestments in 431 118 43 11 146 21 9 8 3joint ventures\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f2022 income statement\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fSales 304 145 12 20 37 15 0 \ue61f 0Depreciation and -27 -5 0 0 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 7 4 0 0 6 0 0 \ue61f 0depositsIncome taxes -29 -16 0 -1 -1 -1 -1 \ue61f 0Profit for the year from 117 33 9 2 6 1 2 \ue61f 0continuing operationsProfit for the 117 33 9 2 6 1 2 \ue61f 0yearOther comprehensive 22 9 0 0 -8 0 0 \ue61f \ue61fincomeTotal comprehensive 138 42 9 2 -2 0 0 \ue61f 0incomeDividends 0 12 0 2 2 -1 0 \ue61f 0receivedOther comprehensive income mainly comprises the currency translation differences. December 31, Rusvinyl Peroxidos Strata - Shandong Hindus-Aqua EECO Hold-Shinsol Cogenera-2021OOOdo Brasil Solvay Huatai tan Gum Pharma ing and sub-Advanced tion Rosi-LtdaAdvanced Interox & Chemi-GroupsidiariesChemicalsgnanoMaterial Chemical cals LtdJVCo. LtdIn \u20ac million\ue61f\ue61f \ue61f \ue61f\ue61f \ue61f \ue61f \ue61f\ue61fOwnership50% 69,40% 50% 50% 50% 50% 33,3% 51,0% 25,4% interestCorporate Corporate Operating Chemi-Chemicals Materials Chemicals Solutions Chemicals& Business Solutions& Business SegmentcalsServicesServicesStatement of \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61ffinancial positionNon-current 324 61 29 4 5 16 10 \ue61f 5assetsCurrent assets 82 58 10 12 156 12 15 8 4Cash and cash 57 25 10 9 138 6 2 8 3equivalentsNon-current 50 7 0 - 5 4 8 \ue61f 4liabilitiesNon-current 30 4 0 0 0 0 8 \ue61f 4financial debtCurrent liabilities 64 26 3 5 8 1 9 \ue61f 1Current financial 39 4 - 0 0 0 8 \ue61f 1debtInvestments in 292 87 36 11 149 23 8 8 4joint ventures2021 income \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fstatementSales 276 88 13 22 22 18 0 \ue61f 0Depreciation and -22 -4 0 -1 -1 -2 -1 \ue61f -1amortizationCost of -7 0 0 0 0 0 -1 \ue61f 0borrowings Interest on loans and short-term 2 1 0 0 7 0 1 \ue61f 0depositsIncome taxes -28 -11 0 -1 -2 -1 0 \ue61f 0Profit for the year from con-111 26 9 2 5 1 1 \ue61f 0tinuing opera-tionsProfit for the 111 26 9 2 5 1 1 \ue61f 0yearOther comprehensive 21 2 0 1 8 2 0 \ue61f \ue61fincomeTotal comprehensive 132 28 9 3 14 3 0 \ue61f 0incomeDividends re-103 15 0 1 2 -1 0 \ue61f 0ceivedOther comprehensive income mainly comprises the currency translation differences. NOTE\ue61fF40LIST OF COMPANIES INCLUDED IN THE CONSOLIDATION SCOPEThe Group consists of Solvay\ue61fSA and a total of 304 investees.Of these 304\ue61finvestees, 152 are fully consolidated, 7 are proportionately consolidated and 23 are accounted for under the equity method, whilst the other 122 do not meet the\ue61fcriteria of significance.In accordance with the concept of materiality, certain companies (Other Investments), which are insignificant, have not been included in the consolidation scope. They are measured at cost and tested for impairment on an annual basis, which is considered a good proxy of their fair value. For more information, refer to Principles of consolidation.List of companies entering or leaving the consolidation scopeCompanies entering the consolidation scopeCountryCompanyCommentsPORTUGAL Solvay Biotecnologia Portugal LDA, Carnaxide New companyLUXEMBOURG Renestia S.A., Capellen New companyUNITED KINGDOM Oldbury Energy Solutions UK Ltd, Oldbury Meets the consolidation criteriaUNITED STATES Energy Solutions US LLC, Breckenridge, TX Meets the consolidation criteriaCompanies leaving the consolidation scopeCountryCompanyCommentsLATVIA Solvay Business Services Latvia SIA, Riga LiquidatedUNITED KINGDOM Penso Holdings Ltd, Coventry LiquidatedUNITED STATES Solvay Soda Ash Expansion JV, Houston, Texas Merged into American Soda LLC\ue61f Solvay Soda Ash Joint Venture, Houston, Texas Merged into American Soda LLCJoint venturesAUSTRALIAAqua Pharma Australia Pty Ltd, Armidale 50BELGIUM \ue61fEECO Holding SA, Brussels 33.3BRAZIL \ue61fPeroxidos do Brasil Ltda, Sao Paulo 69.4CANADA \ue61fAqua Pharma Inc, Saint John 50CHILE \ue61fAqua Pharma Chile Spa, Puerto Montt 50CHINA \ue61fShandong Huatai Interox Chemical Co. Ltd, Dongying 50INDIA \ue61fHindustan Gum & Chemicals Ltd, New Delhi 50IRELAND \ue61fAqua Pharma Ireland Ltd, Dublin 50ITALY \ue61fCogeneration Rosignano S.r.l., Rosignano 25.4Cogeneration Spinetta S.p.a., Bollate 33.3NORWAY \ue61fAqua Pharma Group A.S., Lillehammer 50Aqua Pharma A.S., Lillehammer 50Haugaland Shipping A.S., Haugesund 50RUSSIA \ue61fRusvinyl OOO, Moscow 50TAIWAN \ue61fShinsol Advanced Chemicals Corporation, New Taipei 51UNITED ARAB EMIRATES \ue61fStrata - Solvay Advanced Materials Joint-Venture LLC, Al Ain 50UNITED KINGDOM \ue61fAqua Pharma Technical Ltd, Inverness 50Aqua Pharma Ltd, Inverness 50UNITED STATES \ue61fAqua Pharma U.S. Inc, Kirkland 25AssociatesCHINAQingdao Hiwin Solvay Chemicals Co. Ltd, Qingdao 30FRANCE \ue61fGIE Chime Salindres, Salindres 50INDONESIA \ue61fSolvay Manyar P.T., Gresik 50MEXICO \ue61fSilicatos y Derivados S.A. DE C.V., Estado de Mexico 20",
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"value": "NOTE\ue61fF25 INVENTORIESAccounting policyCost of inventories includes the purchase, conversion and other costs incurred in bringing the inventories to their\ue61fpresent location and condition. The cost of inventories is determined by using the weighted average cost method. Inventories are measured at the lower of purchasing cost (raw materials and merchandise) or production cost (work in progress and finished goods) and net realizable value. Net realizable value represents the estimated selling price, less all estimated costs of completion and the estimated costs necessary to make the sale.CO emission rights2With respect to the mechanism set up by the European Union to encourage manufacturers to reduce their greenhouse gas emissions, carbon dioxide (CO) emission rights are granted to the Group for free. The Group is also involved in Clean Development Mechanism (CDM) under the 2Kyoto protocol. Under these projects, the Group has deployed facilities in order to reduce greenhouse gas emissions at the relevant sites in return for Certified Emission Reductions (CER).In the absence of any IFRS regulating the accounting treatment of CO emission rights, the Group applies the Trade/Production model, according 2to which CO emission rights are presented as inventories if they will be consumed in the production process within the next 12 months, or as 2derivatives if they are held for trading. Energy Services is involved in CO emission rights\u2019 trading, arbitrage and hedging activities. The net income 2or expense from these activities is recognized in \u201cother operating gains and losses\u201d (a) for the industrial component, where Energy Services sells the excess CO emission rights generated by Solvay or where a Group deficit is recognized, as well as (b) for the trading component, where Energy 2Services acts as a trader/broker with respect to those CO emission rights. 2In light of its centralized CO emission rights\u2019 portfolio management, for emission rights that are substitutable between subsidiaries, the Group\u2019s 2financial statements re\ufb02ect the Group\u2019s net position. If this net position is negative, a provision is recognized, measured based on the market price of the CO emission rights at reporting date. 2Energy savings certificates (ESCs)Energy savings certificates are presented as inventory items in Finished goods. They are measured at weighted average cost. As their cost is not separately identifiable, and as they are a by-product, they are measured at their net realizable value upon initial recognition.In \u20ac million December 31, 2022 December 31, 2021Finished goods 1,352 1,156Raw materials and supplies 838 661Work in progress 21 20Total 2,211 1,837Write-downs -102 -92Net total 2,109 1,745The CO emission rights amount to \u20ac57 million at the end of 2022. \u20ac16 million are included in the inventories (for 2022 obligations) and \u20ac41 million are 2reported under Other non-current assets (for obligations after 2022). See Note F32 Financial Instruments for further details on CO hedging.2Inventory write-downs are included in cost of goods sold in the consolidated income statement.",
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"pp-value-132-4": {
"value": "Accounting policyCost of inventories includes the purchase, conversion and other costs incurred in bringing the inventories to their\ue61fpresent location and condition. The cost of inventories is determined by using the weighted average cost method. Inventories are measured at the lower of purchasing cost (raw materials and merchandise) or production cost (work in progress and finished goods) and net realizable value. Net realizable value represents the estimated selling price, less all estimated costs of completion and the estimated costs necessary to make the sale.CO emission rights2With respect to the mechanism set up by the European Union to encourage manufacturers to reduce their greenhouse gas emissions, carbon dioxide (CO) emission rights are granted to the Group for free. The Group is also involved in Clean Development Mechanism (CDM) under the 2Kyoto protocol. Under these projects, the Group has deployed facilities in order to reduce greenhouse gas emissions at the relevant sites in return for Certified Emission Reductions (CER).In the absence of any IFRS regulating the accounting treatment of CO emission rights, the Group applies the Trade/Production model, according 2to which CO emission rights are presented as inventories if they will be consumed in the production process within the next 12 months, or as 2derivatives if they are held for trading. Energy Services is involved in CO emission rights\u2019 trading, arbitrage and hedging activities. The net income 2or expense from these activities is recognized in \u201cother operating gains and losses\u201d (a) for the industrial component, where Energy Services sells the excess CO emission rights generated by Solvay or where a Group deficit is recognized, as well as (b) for the trading component, where Energy 2Services acts as a trader/broker with respect to those CO emission rights. 2In light of its centralized CO emission rights\u2019 portfolio management, for emission rights that are substitutable between subsidiaries, the Group\u2019s 2financial statements re\ufb02ect the Group\u2019s net position. If this net position is negative, a provision is recognized, measured based on the market price of the CO emission rights at reporting date. 2Energy savings certificates (ESCs)Energy savings certificates are presented as inventory items in Finished goods. They are measured at weighted average cost. As their cost is not separately identifiable, and as they are a by-product, they are measured at their net realizable value upon initial recognition.",
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"pp-value-132-5": {
"value": "Accounting policyCost of inventories includes the purchase, conversion and other costs incurred in bringing the inventories to their\ue61fpresent location and condition. The cost of inventories is determined by using the weighted average cost method. Inventories are measured at the lower of purchasing cost (raw materials and merchandise) or production cost (work in progress and finished goods) and net realizable value. Net realizable value represents the estimated selling price, less all estimated costs of completion and the estimated costs necessary to make the sale.CO emission rights2With respect to the mechanism set up by the European Union to encourage manufacturers to reduce their greenhouse gas emissions, carbon dioxide (CO) emission rights are granted to the Group for free. The Group is also involved in Clean Development Mechanism (CDM) under the 2Kyoto protocol. Under these projects, the Group has deployed facilities in order to reduce greenhouse gas emissions at the relevant sites in return for Certified Emission Reductions (CER).In the absence of any IFRS regulating the accounting treatment of CO emission rights, the Group applies the Trade/Production model, according 2to which CO emission rights are presented as inventories if they will be consumed in the production process within the next 12 months, or as 2derivatives if they are held for trading. Energy Services is involved in CO emission rights\u2019 trading, arbitrage and hedging activities. The net income 2or expense from these activities is recognized in \u201cother operating gains and losses\u201d (a) for the industrial component, where Energy Services sells the excess CO emission rights generated by Solvay or where a Group deficit is recognized, as well as (b) for the trading component, where Energy 2Services acts as a trader/broker with respect to those CO emission rights. 2In light of its centralized CO emission rights\u2019 portfolio management, for emission rights that are substitutable between subsidiaries, the Group\u2019s 2financial statements re\ufb02ect the Group\u2019s net position. If this net position is negative, a provision is recognized, measured based on the market price of the CO emission rights at reporting date. 2Energy savings certificates (ESCs)Energy savings certificates are presented as inventory items in Finished goods. They are measured at weighted average cost. As their cost is not separately identifiable, and as they are a by-product, they are measured at their net realizable value upon initial recognition.",
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"pp-value-134-4": {
"value": "NOTE\ue61fF26 OTHER RECEIVABLES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021VAT and other taxes 398 321Advances to suppliers 149 189Financial instruments \u2013 operational 929 1,326Insurance premiums 31 38Loan receivables 43 28Other 78 102Other current receivables 1,628 2,004Financial instruments \u2013 operational includes held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"pp-value-134-5": {
"value": "NOTE\ue61fF26 OTHER RECEIVABLES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021VAT and other taxes 398 321Advances to suppliers 149 189Financial instruments \u2013 operational 929 1,326Insurance premiums 31 38Loan receivables 43 28Other 78 102Other current receivables 1,628 2,004Financial instruments \u2013 operational includes held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"pp-value-134-6": {
"value": "NOTE\ue61fF26 OTHER RECEIVABLES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021VAT and other taxes 398 321Advances to suppliers 149 189Financial instruments \u2013 operational 929 1,326Insurance premiums 31 38Loan receivables 43 28Other 78 102Other current receivables 1,628 2,004Financial instruments \u2013 operational includes held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"pp-value-134-7": {
"value": "NOTE\ue61fF26 OTHER RECEIVABLES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021VAT and other taxes 398 321Advances to suppliers 149 189Financial instruments \u2013 operational 929 1,326Insurance premiums 31 38Loan receivables 43 28Other 78 102Other current receivables 1,628 2,004Financial instruments \u2013 operational includes held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.Income and expenses on financial instruments recognized in other comprehensive income include the following:In \u20ac million Cash \ufb02ow hedgesForeign currency Interest rate risk Commodity risk Risk on Solvay Totalriskshare price2022 2021 2022 2021 2022 2021 2022 2021 2022 2021January 1 -7 16 7 2 2 1 17Recycling from other comprehensive income of derivative financial 31 -9 \ue61f \ue61f -257 -78 \ue61f \ue61f -226 -87instruments designated in a cash \ufb02ow hedge relationshipEffective portion of changes in fair value -10 -14 \ue61f \ue61f 317 85 -1 306 71of cash \ufb02ow hedgeDecember 31 13 -7 67 7 1 2 81 1Conventionally, (+) indicates an increase and (-) a reduction in equity.Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). ",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"pp-value-134-8": {
"value": "NOTE\ue61fF26 OTHER RECEIVABLES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021VAT and other taxes 398 321Advances to suppliers 149 189Financial instruments \u2013 operational 929 1,326Insurance premiums 31 38Loan receivables 43 28Other 78 102Other current receivables 1,628 2,004Financial instruments \u2013 operational includes held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.Income and expenses on financial instruments recognized in other comprehensive income include the following:In \u20ac million Cash \ufb02ow hedgesForeign currency Interest rate risk Commodity risk Risk on Solvay Totalriskshare price2022 2021 2022 2021 2022 2021 2022 2021 2022 2021January 1 -7 16 7 2 2 1 17Recycling from other comprehensive income of derivative financial 31 -9 \ue61f \ue61f -257 -78 \ue61f \ue61f -226 -87instruments designated in a cash \ufb02ow hedge relationshipEffective portion of changes in fair value -10 -14 \ue61f \ue61f 317 85 -1 306 71of cash \ufb02ow hedgeDecember 31 13 -7 67 7 1 2 81 1Conventionally, (+) indicates an increase and (-) a reduction in equity.Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). Interest rate risk hedged by instrument accounted for as held for tradingIn \u20ac million Notional amount Fair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021Held for trading 0 18Total 0 18The notional amount reported in 2021 under \u201cheld for trading\u201d is mainly explained by a cross currency swap contracted in May 2017 and settled in the course of 2022 to mitigate the volatility (forex and interest rate) of the external financing set up for the Group\u2019s HPPO joint operation (Saudi Hydrogen Peroxide Company) 50/50 with Sadara in Saudi Arabia (notional amount \u20ac18 million corresponding to 50%). NOTE\ue61fF34OTHER LIABILITIES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021Wages and benefits debts 371 303VAT and other taxes 184 153Social security 51 58Financial instruments - operational 676 1,350Insurance premiums 15 19Advances from customers 97 91Other 106 76Other current liabilities 1,499 2,051Financial instruments \u2013 operational include held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"pp-value-135-3": {
"value": "NOTE\ue61fF27 ASSETS\ue61eHELD FOR SALEAccounting policyA disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit.Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to re\ufb02ect the new classification of a non-current asset (or disposal group) as held for sale.At the end of 2022 and 2021 there are no assets classified as held for sale. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-135-4": {
"value": "NOTE\ue61fF27 ASSETS\ue61eHELD FOR SALEAccounting policyA disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit.Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to re\ufb02ect the new classification of a non-current asset (or disposal group) as held for sale.At the end of 2022 and 2021 there are no assets classified as held for sale. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAvailableforsaleAssetsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-135-7": {
"value": "NOTE\ue61fF27 ASSETS\ue61eHELD FOR SALEAccounting policyA disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit.Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to re\ufb02ect the new classification of a non-current asset (or disposal group) as held for sale.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-138-4": {
"value": "NOTE\ue61fF28EQUITYShare capitalOrdinary shares are classified as equity.Incremental costs directly attributable to the issuance of new share capital are directly recognized in equity as a deduction, net of tax, from the equity issuance proceeds.NUMBER OF SHARES (IN UNITS)December 31, 2022 December 31, 2021Shares issued and fully paid 105,876,416 105,876,416Treasury shares held 2,107,752 2,236,739The treasury shares held by the Group have been deducted from consolidated shareholders\u2019 equity. Perpetual hybrid bondsTo strengthen its capital structure, Solvay issued undated deeply subordinated perpetual bonds (\u201cperpetual hybrid bonds\u201d) of \u20ac1.8 billion as per the following table: In \u20ac million Issuance date Nominal value % Annual coupon First call / reset dateHybrid bond NC10 November 12, 2013 500 5.425% 27 November 12, 2023Hybrid bond NC8.5 December 2, 2015 500 5.869% 29 June 3, 2024Hybrid bond NC5.25* December 4, 2018 300 4.250% 13 March 4, 2024Hybrid bond NC5.5* September 2, 2020 500 2.500% 13 March 2, 2026* with 3 months call option at parAll perpetual hybrid bonds are classified as equity absent any unavoidable contractual obligation to repay the principal and interest of the perpetual hybrid bonds, specifically: \u00b7 No maturity, yet the issuer has a call option at every reset date to redeem the instrument; \u00b7 At the option of the issuer, interest payments can be deferred indefinitely.The coupons related to the perpetual hybrid bonds are recognized as equity transactions and are deducted from equity upon declaration (see consolidated statement of changes in equity). These coupons amount to\ue61f\u20ac82\ue61fmillion in 2022 (\u20ac75 million in 2021).\ue61fShould Solvay have elected not to pay any interest to the perpetual hybrid bond holders, then any payment of dividends to the ordinary shareholders or repayment of ordinary shares would trigger a contractual obligation to pay previously unpaid interests to the perpetual hybrid bond holders.\ue61fTax impacts related to the perpetual hybrid bonds are recognized in profit or loss.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-139-5": {
"value": "Share capitalOrdinary shares are classified as equity.Incremental costs directly attributable to the issuance of new share capital are directly recognized in equity as a deduction, net of tax, from the equity issuance proceeds.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-141-4": {
"value": "Non-controlling interestsThose represent the share of non-controlling interests in the net assets and comprehensive income of subsidiaries of the Group, and corresponds to the interests in subsidiaries that are not held by the Company or its subsidiaries.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-145-3": {
"value": "NOTE\ue61fF29NON-CONTROLLING INTERESTS The amounts disclosed below are fully consolidated amounts and do not re\ufb02ect the impacts from elimination of intragroup transactions.At the end of 2022, the following subsidiaries have non-controlling interests totaling \u20ac40 million (out of a total of \u20ac61 million). In \u20ac million Zhejiang Lansol Solvay Hengchang Zhangjiagang Special Chem Non-controlling ownership interest 45% 30%Statement of financial position \ue61f \ue61fNon-current assets 28 17Current assets 47 72Non-current liabilities 2 1Current liabilities 17 34Income statement \ue61f \ue61fSales 93 168Profit for the year 9 36Other comprehensive income -3 -3Total comprehensive income 6 32Dividends paid to non-controlling interests 0 6Share of non-controlling interest in the profit for the year 4 11Accumulated non-controlling interests 24 16During 2022 the Group purchased the remaining outstanding ownership interest in Solvay Soda Ash (20% for US$ 120 million) and Solvay Special Chem Japan (33% for \u20ac3.55 million) with the difference between the consideration paid and the net book value of the non-controlling interest being recorded as a component of equity (loss of \u20ac88 million on the purchase of Solvay Soda Ash and a gain of \u20ac9.5 million on the purchase of Special Chem Japan).At the end of 2021, the following subsidiaries have non-controlling interests totaling \u20ac93 million (out of a total of \u20ac112 million).In \u20ac million Zhejiang Solvay Special Solvay Soda Solvay Hengchang LansolChem JapanAsh Zhangjiagang Special Chem Non-controlling ownership interest 45% 33% 20% 30%Statement of financial position \ue61f \ue61f \ue61f \ue61fNon-current assets 28 17 285 18Current assets 37 19 75 70Non-current liabilities 2 1 19 0Current liabilities 15 2 79 44Income statement \ue61f \ue61f \ue61f \ue61fSales 80 63 309 136Profit for the year 5 3 135 21Other comprehensive income 4 -1 -8 3Total comprehensive income 9 2 127 25Dividends paid to non-controlling interests 3 1 34 1Share of non-controlling interest in the profit for the year 2 1 27 6Accumulated non-controlling interests 21 11 49 12",
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"concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-147-2": {
"value": "NOTE\ue61fF30SHARE-BASED PAYMENTSAccounting policySolvay has set up compensation plans, including equity-settled and cash-settled share-based compensation plans.In its equity-settled plans, the Group receives services as consideration for its own equity instruments (namely through the issuance of share options). The fair value of services rendered by employees in consideration for the granting of equity-instruments represents an expense. This expense is recognized on a straight-line basis in the consolidated income statement over the vesting periods relating to these equity-instruments with the recognition of a corresponding adjustment in equity. The fair value of services rendered is measured based on the fair value of the equity-instruments on the grant date. It is not subsequently remeasured. At each reporting date, the Group re-estimates the number of share options likely to vest. The impact of the revised estimates is recognized in profit or loss against a corresponding adjustment in equity.In its cash-settled plans, the Group acquires services by incurring a liability to transfer to its employees rendering those services amounts that are based on the price (or value) of equity instruments (including shares or share options) of the Group (namely through the issuance of performance share units). The fair value of services rendered by employees in consideration for the granting of share-based payments represents an expense. This expense is recognized on a straight-line basis in the consolidated income statement over the vesting periods relating to these share-based payments with the recognition of a corresponding adjustment in liabilities. At each reporting date, the Group re-estimates the number of options likely to vest, with the impact of the revised estimates recognized in profit or loss. The Group measures the services acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss for the period.Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group\u2019s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are re\ufb02ected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are re\ufb02ected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. The dilutive effect of outstanding options is re\ufb02ected as additional share dilution in the computation of diluted earnings per share (further details are given in Note F9 Earnings per share).Stock Option PlanIn 2022, the Board of Directors offered to executive staff (17 beneficiaries) a share option plan with a view to incentivize long-term value creation delivered through the transformation of the Group. The plan is an equity-settled share-based plan. All of the managers involved subscribed to the options offered to them in 2022 with an exercise price of \u20ac84.34 representing the average stock market price of the share for the 30 days prior to the offer. Share option plans 2022 2021 2020 2019 2018 - 2 2018 - 1Number of share options granted and still outstanding at December 31, \ue61f 265,433 395,164 429,103 72,078 391,2802021Granted share options 386,867Forfeitures of rights and expiries -6,432Share options exercisedNumber of share options at December 31, 2022 386,867 259,001 395,164 429,103 72,078 391,280Share options exercisable at December 31, 2022 72,078 391,280Exercise price (in \u20ac) 84.34 95.58 95.58 97.05 108.38 113.11Fair value of options at measurement date (in \u20ac) 16.47 23.32 15.23 17.77 20.81 19.102017 2016 2015 2014Number of share options granted and still outstanding at December 31, 308,450 521,095 332,565 204,7872021Granted share optionsForfeitures of rights and expiries -156 -658Share options exercised -23,250 -204,129Number of share options at December 31, 2022 308,450 497,845 332,409Share options exercisable at December 31, 2022 308,450 497,845 332,409Exercise price (in \u20ac) 111.27 75.98 114.51 101.14Fair value of options at measurement date (in \u20ac) 23.57 17.07 24.52 22.792022 2021Number of share Weighted average Number of share Weighted average optionsexercise priceoptionsexercise priceJanuary 1 2,919,955 104.54 3,394,908 103.63Granted during the year 386,867 84.34 265,433 95.58Forfeitures of rights and expiries during the year -7,246 96.49 -152,403 104.56Exercised during the year -227,379 98.57 -587,983 95.25December 31 3,072,197 102.45 2,919,955 104.54Exercisable at December 31 1,602,062 1,366,897 In 2022, the share options resulted in an expense of \u20ac5 million, which was calculated by third parties according to the Monte Carlo simulation, and recognized in the consolidated income statement as part of administrative costs. The valuation of the stock option plan of 2022 is based on: \u00b7 the price of the underlying asset (Solvay share): \u20ac78 at September 29, 2022; \u00b7 the time outstanding until option maturity: exercisable from January 1, 2026 until December 31, 2027, taking into account the fact that some of them will be exercised before the option maturity; \u00b7 the option exercise price: \u20ac84.34; \u00b7 the risk-free return: 2.38% (on average); \u00b7 the average volatility of the underlying yield, estimated based on the option price: 32.8%; \u00b7 an average dividend yield of 2.76%; \u00b7 the achievement of a target market capitalization.Weighted average remaining contractual life of the share option plans:In years 2022 20212014 0.22015 0.2 1.22016 1.2 2.22017 2.2 3.22018-1 3.2 4.22018-2 3.6 4.62019 4.2 5.22020 5.2 6.22021 6.1 7.12022 5.0 \ue61fPerformance Share Units Plan (PSU)In 2022, the Board of Directors offered to executive staff a Performance Share Unit Plan, with the objective of promoting long-term success and to increase the focus on sustainable performance for the benefit of the Solvay Group and its stakeholders. All the managers involved subscribed to the PSU offered to them in 2022 with a grant date fair value of \u20ac90.61 representing the average stock market price of the share for the 30 days prior to the offer. The PSU plan 2022 is an equity-settled share-based plan with a 3-year vesting period, after which shares will be issued, if vesting conditions are met.The PSU plans of 2021 and 2020 are cash-settled plans with a 3-year vesting period, after which a cash settlement will take place, if vesting conditions are met.Performance share Plan 2022 Plan 2021 Plan 2020unitsNumber of PSUs 196,605 194,130 236,802Grant date 17/05/2022 23/02/2021 25/02/2020Vesting date 01/01/2025 01/01/2024 01/01/2023Vesting period 17/05/2022 to 31/12/2024 31/03/2021 to 31/12/2023 31/03/2020 to 31/12/202240% of the initial granted PSUs are 40% of the initial granted PSUs are 40% of the initial granted PSUs are sub-subject to the achievement of Year subject to the achievement of Year ject to the achievement of Year over over Year Underlying EBITDA growth over Year Underlying EBITDA growth Year Underlying EBITDA growth target target for each of the 3 (2022, 2023, target for each of the 3 (2021, 2022, for each of the 3 (2020, 2021, 2022) per-2024) performance years ending on 2023) performance years ending on formance years ending on December December 31, 2024December 31, 202331, 202240% of the initial granted PSUs are sub-40% of the initial granted PSUs are sub-40% of the initial granted PSUs are sub-ject to the sustained and /or improved ject to the sustained and /or improved ject to the sustained and /or improved ROCE % of the Company for each of ROCE % of the Company for each of ROCE % of the Company for each of the 3 (2022, 2023, 2024) performance the 3 (2021, 2022, 2023) performance the 3 (2020, 2021, 2022) performance Performance yearsyearsyearsconditions20% of the initial granted PSUs are 20% of the initial granted PSUs are 20% of the initial granted PSUs are subject to the reduction of GHG abso-subject to the reduction of GHG abso-subject to the reduction of GHG abso-lute emissions during the same 3 years lute emissions during the same 3 years lute emissions during the same 3 years (2022, 2023, 2024) (2021, 2022, 2023) (2020, 2021, 2022) Achievement of the plan is measured Achievement of the plan is measured Achievement of the plan is measured for each separate performance year. for each separate performance year. for each separate performance year. The score achieved for each individual The score achieved for each individual The score achieved for each individual year is acquired definitively, whatever year is acquired definitively, whatever year is acquired definitively, whatever the achievement of the other yearsthe achievement of the other yearsthe achievement of the other yearsValidation of perfor-By the Board of Directors By the Board of Directors By the Board of Directorsmance conditionsFor the PSU plan 2022, the participants who are also members of the Executive Leadership Team (including the CEO) on the grant date must achieve an additional performance condition. If achievement of the performance conditions outlined in the above table is positive (above 0), delivery of the PSUs is subject to further adjustment based on the Total Shareholder Return (TSR) performance of the Group in comparison to the TSR of the Stoxx 600 index companies for the period equal to the Performance Period. In 2022, the impact on the consolidated income statement regarding PSUs (net of hedging \u2013 see note F32 Financial Instruments) amounts to a cost of \u20ac\ue61f(20) million, compared to a cost of \u20ac\ue61f(17) million in 2021. Included in the 2022 PSU cost is \u20ac6 million related to the new equity-settled plan. The carrying amount of the PSU liabilities for the 2021 and 2020 cash-settled plans amounts to \u20ac39 million at the end of 2022, compared to \u20ac31 million at the end of 2021.At December 31, 2022, there were 192,828 PSUs outstanding for the 2022 equity settled plan and 180,816 and 200,941 for the 2021 and 2020 cash-settled plans, respectively.Restricted Share Units (RSU)In 2022, the Board of Directors offered to executive staff a Restricted Share Unit Plan, with the objective of promoting long-term success and to increase the focus on sustainable performance for the benefit of the Solvay Group and its stakeholders. All the managers involved subscribed to the RSU offered to them in 2022 with a grant date fair value of \u20ac90.61 representing the average stock market price of the share for the 30 days prior to the offer. 84,353 RSUs were granted. The Restricted Share Units is an equity-settled share-based plan with a vesting date of December 31, 2024, after which shares will be issued, if vesting conditions are met. At December 31, 2022, there are 82,732 RSUs outstanding. In 2022, the impact on the consolidated income statement of the RSUs amounts to a cost of \u20ac2 million. The PSUs and RSUs have been hedged by Solvay with 360,000 call options with a strike price at \u20ac86.24 maturing on September 29, 2023. See note F32 Financial Instruments.Employee Stock Purchase Plan (ESPP)In September 2022, Solvay launched its first employee share purchase plan. By participating in the plan, employees have the opportunity to purchase Solvay Group shares on preferential terms. 27.7% of employees subscribed to the plan offered to them in 2022 with a grant date fair value of \u20ac82.85 representing the average stock market price of the share for the 30 days prior to the offer. These employees will receive one free Solvay Group share for joining the plan as well as one matching share for every two shares purchased. The ESPP is an equity-settled share-based plan with a vesting date of September 30, 2024, after which the free and matching shares will be issued, if vesting conditions are met.At December 31, 2022, 79,455 shares are expected to be granted to the employees. The impact on the consolidated income statement of the ESPP amounts to a cost of \u20ac1 million.The ESPP has been hedged by Solvay with 80,500 call options with a strike price at \u20ac78.91 maturing on September 29, 2023.Performance Share Units Plan (PSU) risk on Solvay share priceIn order to neutralize the volatility of the Solvay share price, which will impact the liability valuation relating to the cash settled PSU plans (with related employer charges), the Group entered into equity swaps covering approximately 100% of the risk. In 2022, a liability of \u20ac39 million, recognized for 2020 and 2021 PSU plans (in 2021, \u20ac24 million for the 2020 and 2021 PSU plans) corresponds to the best estimate of the amount due at maturity.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-148-4": {
"value": "Accounting policySolvay has set up compensation plans, including equity-settled and cash-settled share-based compensation plans.In its equity-settled plans, the Group receives services as consideration for its own equity instruments (namely through the issuance of share options). The fair value of services rendered by employees in consideration for the granting of equity-instruments represents an expense. This expense is recognized on a straight-line basis in the consolidated income statement over the vesting periods relating to these equity-instruments with the recognition of a corresponding adjustment in equity. The fair value of services rendered is measured based on the fair value of the equity-instruments on the grant date. It is not subsequently remeasured. At each reporting date, the Group re-estimates the number of share options likely to vest. The impact of the revised estimates is recognized in profit or loss against a corresponding adjustment in equity.In its cash-settled plans, the Group acquires services by incurring a liability to transfer to its employees rendering those services amounts that are based on the price (or value) of equity instruments (including shares or share options) of the Group (namely through the issuance of performance share units). The fair value of services rendered by employees in consideration for the granting of share-based payments represents an expense. This expense is recognized on a straight-line basis in the consolidated income statement over the vesting periods relating to these share-based payments with the recognition of a corresponding adjustment in liabilities. At each reporting date, the Group re-estimates the number of options likely to vest, with the impact of the revised estimates recognized in profit or loss. The Group measures the services acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss for the period.Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group\u2019s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are re\ufb02ected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are re\ufb02ected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. The dilutive effect of outstanding options is re\ufb02ected as additional share dilution in the computation of diluted earnings per share (further details are given in Note F9 Earnings per share).",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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"pp-value-156-4": {
"value": "NOTE F31PROVISIONSIn \u20ac million Employee benefits Restructuring Environment Litigation Other TotalDecember 31, 2021 1,574 191 648 62 126 2,600Additions 63 32 194 54 33 377Reversals of unused amounts 0 0 -17 -10 -13 -41Uses -101 -106 -90 -8 -24 -328Use of provisions for additional voluntary contri--155 -155butions (pension plans)Increase/decrease through discounting 3 0 -42 1 0 -39Remeasurements -351 0 0 0 0 -351Currency translation differences 16 2 13 3 1 34Acquisitions and changes in consolidation scope 0 0 0 0 0 0Disposals 0 0 0 0 0 0Other 8 0 -3 -4 0 0December 31, 2022 1,057 119 702 97 123 2,097Of which current provisions 0 81 108 52 57 297The provisions decreased by \u20ac(503) million in 2022, of which \u20ac(517) million for Employee benefits, \u20ac(72) million for Restructuring, partially offset by an increase of \u20ac54 million for Environment and \u20ac35 million for Litigation. Employees benefit includes other long-term benefits and termination benefits.For employee benefits, the deleveraging of \u20ac(517) million is explained as follows: \u00b7 payments (uses) for \u20ac(101) million, and voluntary contributions of \u20ac(155) million to pension funds to deleverage and de-risk; \u00b7 net new liabilities (additions and reversals) for \u20ac63 million; \u00b7 remeasurements, resulting from the changes in assumptions related to the gross liability for \u20ac(1,067) million (mainly due to changes in discount rates); \u00b7 return on plan assets increasing the liability by \u20ac631 million, of which \u20ac(85) million in deduction of \u201cIncrease through discounting\u201d and \u20ac716 million in increase of \u201cRemeasurements\u201d for the assets return exceeding the discount rate, which excludes the impact of remeasurements on the plan assets surplus (\u20ac(195) million); \u00b7 net increase through discounting for \u20ac3 million for the unwinding of the discount rate on the gross liability; \u00b7 other increases in the employee benefit obligations for \u20ac109 million mainly due to the reclassification of the amounts recognized in asset surplus and currency translation differences. Restructuring, environmental and litigation - see note F31.B Provisions other than employee benefits.The movements in Other provisions mainly relate to post-closing adjustments resulting from M&A warranties as well as indemnities for environmental remediation.Management expects provisions (other than employee benefits) to be used (cash outlays) as follows:In \u20ac millionup to 5 years between 5 and 10 years beyond 10 years TotalTotal provisions for environment 361 96 245 702Total provisions for litigation 92 5 97Total provisions for restructuring and other 226 16 241December 31, 2022 679 116 245 1,0401. F31.A. Provisions for employee bene\ue782tsAccounting policyGeneralThe Group\u2019s employees are offered various post-employment benefits, other long-term employee benefits, and termination benefits as a result of legislation applicable in certain countries, and contractual agreements entered into by the Group with its employees or constructive obligations.The post-employment benefits are classified as defined contribution or defined benefit plans.Defined contribution plansDefined contribution plans involve the payment of fixed contributions to a separate entity, and release the employer from any subsequent obligation, as this separate entity is solely responsible for paying the amounts due to the employee. The expense is recognized when an employee has rendered services to the Group during the period.Defined benefit plansDefined benefit plans concern all plans other than defined contribution plans, and include: \u00b7 post-employment benefits: pension plans, other post-employment obligations and supplemental benefits such as post-employment medical plans.Taking into account projected final salaries on an individual basis, post-employment benefits are measured by applying a method (projected unit credit method) using assumptions involving discount rate, life expectancy, turnover, wages, annuity revaluation and medical cost in\ufb02ation. The assumptions specific to each plan take into account the local economic and demographic contexts.The discount rates are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligation.The amount recognized under post-employment obligations corresponds to the difference between the present value of future obligations and the fair value of the plan assets funding the plan, if any. If this calculation gives rise to a deficit, an obligation is recognized in liabilities. Otherwise, a net asset limited to the lower of the surplus in the defined benefit plan and the present value of any future plan refunds or any reduction in future contributions to the plan is recognized. Therefore the amount at which such an asset is recognized in the statement of financial position may be subject to a ceiling.The defined benefit cost consists of service cost and net interest expense (based on discount rate) on the net liability or asset, both recognized in profit or loss, and remeasurements of the net liability or asset, recognized in other comprehensive income.Service cost consists of current service cost, past service cost resulting from plan amendments or curtailments and settlement gains or losses.The interest expenses arising from the reverse discounting of the benefit obligations, the financial income on plan assets (determined by multiplying the fair value of the plan assets by the discount rate) as well as interest on the effect of the asset ceiling are recognized on a net basis in the net financial charges (cost of discounting of provisions).Remeasurements of the net liability or asset consist of: \u00b7 actuarial gains and losses on the benefit obligations arising from experience adjustments and/or changes in actuarial assumptions (including the effect of changes in the discount rate) recognized in other comprehensive income; \u00b7 Changes as a consequence of plan amendments, recognized in profit or loss; \u00b7 the return on plan assets (excluding amounts in net interest) and changes in the limitation of the net asset recognized.The actuarial calculations of the main post-employment obligations and other long-term benefits are performed by independent actuaries.OVERVIEW In \u20ac million December 31, 2022 December 31, 2021Post-employment benefits 873 1,371Other long-term benefits 136 153Termination benefits 49 50Total employee benefits 1,057 1,574POST-EMPLOYMENT BENEFITSA. Defined contribution plansFor defined contribution plans, Solvay pays contributions to publicly or privately administered pension funds or insurance companies. For 2022, the expense amounts to \u20ac59 million compared to \u20ac56 million for 2021. B. Defined benefit plansDefined benefit plans can be either funded via outside pension funds or insurance companies (\u201cfunded plans\u201d) or financed within the Group (\u201cunfunded plans\u201d). Unfunded plans have no plan assets dedicated to them. The net liability results from the net of the provisions and the asset plan surplus.In \u20ac million December 31, 2022 December 31, 2021Provisions 873 1,371Asset plan surplus -62 -248Net liability 810 1,123\ue61f \ue61f \ue61f\ue61f 2021 2021Operational expense 44 19Finance expense 14 13The operating expense includes current service cost for \u20ac38 million (\u20ac43 million in 2021) (see also B.3.). B.1. Management of risksOver recent years, the Group has reduced its exposure to defined benefit plan obligations stemming from future services by converting existing plans into pension plans with a lower risk profile (hybrid plans, cash balance plans and defined contribution plans) or by closing them to new entrants.Solvay continuously monitors its risk exposure, focusing on the following risks:Asset volatilityEquity instruments, even though expected to outperform corporate bonds in the long-term, create volatility and risk in the short-term. To mitigate this risk, the allocation to equity instruments is monitored using Assets and Liabilities Management techniques, to ensure it remains appropriate given the respective schemes\u2019 and Group\u2019s long term objectives.Changes in bond yieldsA decrease in corporate bond yields will increase the carrying amount of the plans\u2019 liabilities. For funded schemes this impact will be partially offset by an increase in the fair value of the plan assets.Corporate bond yields are highly dependent on global and local market situations, the decisions of central banks and the political situation. Events\ue61fthat are currently impacting the financial markets are: \u00b7 the war in Ukraine and its geopolitical consequences; \u00b7 high in\ufb02ation due to increasing energy prices; \u00b7 quantitative tightening applied by central banks to\ue61fcombat\ue61frising in\ufb02ation.Consequently, yields in the major currency zones (Eurozone, the UK, and the US) have increased compared to 2021 (see Actuarial assumptions used in determining the liability).\ue61fThe result is a\ue61fdecrease in the Group's defined benefit obligations in 2022.\ue61fIn\ufb02ation riskThe defined benefit obligations are linked to in\ufb02ation, and\ue61fas a result,\ue61fhigher in\ufb02ation will lead to\ue61fan increase in the benefit obligation\ue61f(although, in most cases, caps on the level of in\ufb02ationary increases are in place to protect against extreme in\ufb02ation). A\ue61flimited\ue61fpart of the assets\ue61fare either unaffected by or only partially correlated with in\ufb02ation, meaning that an increase in in\ufb02ation will also increase the plans\u2019 net liabilities.The in\ufb02ation rate in each country is based on the Global Economic Consensus Forecast (GCF) with the exception of the UK, where the information is derived from the Bank of England. Long-term in\ufb02ation assumptions have increased slightly in the Eurozone in comparison to 2021. In the UK, the outlook for the retail price index and consumer price index remains unchanged from 2021. The long-term in\ufb02ation rate in the US, which is also based on the\ue61fGCF, remains unchanged compared to 2021. (See\ue61fActuarial assumptions used in determining the liability)Life expectancyThe majority of the schemes\u2019 obligations are to provide benefits for the life of the member. Increases in life expectancy will therefore increase the plans\u2019 liabilities.Regulatory riskEspecially with respect to funded plans, the Group is exposed to the risk of external funding following regulatory constraints. This should not impact the defined benefit obligation but could expose the Group to a potential significant cash outlay.B.2. Description of obligationsThe provisions have been set up to cover post-employment benefits granted by most Group companies in line, either with local rules and /or with established practices, which generate constructive obligations.The largest post-employment plans in 2022 are in the United Kingdom, the United States, France, Germany and Belgium. These five countries represent 94% of the total defined benefit obligations and represent 95% of the total recognized plan assets.December 31, 2022\ue61fIn \u20ac million Defined bene-In % Recognized Net liability/In % Ratio plan assets of which asset surplus fit obligationsplan assets(asset)on defined benefit recognized in the obligationsbalance sheetUnited Kingdom 1,045 27% \ue61f 1,031 14 2% 99% 0United States 1,097 29% \ue61f 984 113 14% 90% 0France 722 19% \ue61f 309 414 51% 43% 32Germany 399 10% \ue61f 201 198 24% 50% 0Belgium 328 9% \ue61f 330 -2 0% 101% 23Other countries 209 6% \ue61f 136 73 9% 65% 7Total 3,801 100% \ue61f 2,990 810 100% 79% 62December 31, 2021\ue61fIn \u20ac million Defined bene-In % Recognized Net liability/In % Ratio plan assets of which asset surplus fit obligationsplan assets(asset)on defined benefit recognized in the obligationsbalance sheetUnited Kingdom 1,618 32% \ue61f 1,678 -60 -5% 104% 76United States 1,315 26% \ue61f 1,230 86 8% 93% 66France 953 19% \ue61f 372 582 52% 39% 50Germany 516 10% \ue61f 70 446 40% 14%Belgium 384 8% \ue61f 405 -21 -2% 105% 51Other countries 229 5% \ue61f 139 90 8% 61% 5Total 5,016 100% \ue61f 3,893 1,123 100% 78% 248United KingdomSolvay sponsors a few defined benefit plans in the United Kingdom; the largest one is the Rhodia Pension Fund (the Fund). This is a final salary funded pension plan, with entitlement to accrue a percentage of salary per year of service. It was closed to new entrants in 2003 and replaced by a defined contribution plan.Broadly, about 8% of the liabilities are attributable to current employees, 28% to former employees and 64% to current pensioners.The Fund functions and complies with UK legislation under a large regulatory framework. The Pensions Regulator has a risk-based approach to regulation and a code of practice, which provides practical guidance to trustees and employers of defined benefit schemes on how to comply with the scheme funding requirements. In accordance with UK legislation, the Fund is subject to Scheme Specific Funding, which requires that pension plans are funded prudently.The Fund is governed by a Board of Trustees. They manage the Fund with prudent and fair judgment. The Trustees determine the liabilities used for Statutory Funding Objectives based on prudent actuarial and economic assumptions. Any shortfall or deficit once these liabilities have been deducted from the Fund\u2019s assets must be reduced by additional contributions and in a time frame determined in accordance with the employer\u2019s ability to pay and the strength of covenant or contingent security being offered by the employer.The Fund is subject to a triennial valuation cycle for funding purposes. This valuation is performed by the scheme actuary in line with UK regulations and is discussed between the Trustees and the sponsoring employer to agree the valuation assumptions and a funding plan. The last completed valuation was as of July 1, 2021, which established a fixed contribution rate of pensionable pay for active members plus a deficit recovery plan, which aims to fully fund the scheme\u2019s technical provisions by the end of 2027 in accordance with local regulations. The guarantee provided by Solvay (\u00a3 330 million) is based on local regulations and exceeds the recognized liability \u2013 See note F36 Contingent assets, liabilities and financial guarantees for more information. FranceSolvay sponsors several defined benefit plans in France. The largest plans are the French compulsory retirement indemnity plan and three closed top hat plans. Indeed, as required by the \u201cLoi Pacte\u201d, the open top hat plan (so called \u201cARS\u201d) was closed at the end of 2019 and replaced by a defined contribution plan. The main plan is for all former Rhodia employees who contributed to the plan prior to its closure in the 1970s. It offers a full benefit guarantee based on the end-of-career salary; more than 99% of the liabilities are attributable to current pensioners. This plan is partially funded.In accordance with French legislation, adequate guarantees have been provided.United StatesSolvay sponsors five defined benefit pension plans in the United States (two qualified plans and three non-qualified plans). A qualified plan is an employer-sponsored retirement plan that qualifies for special tax treatment under Section 401(a) of the Internal Revenue Code. At this moment all defined benefit plans are closed to new entrants where newly hired employees are eligible to participate in a defined contribution plan. Note that both qualified defined benefit pension plans are funded while the three non-qualified defined benefit pension plans are unfunded. The qualified plans make up the vast majority of the pension liabilities as of December 31, 2022.Solvay's plans are in compliance with local laws regarding audited financial statements, governmental filings, and Pension Benefit Guaranty Corporation insurance premiums where applicable. The plans are reviewed and monitored locally by fiduciary committees for purposes of plan investments and administrative matters.For the US qualified plans, Solvay\u2019s contributions take into account minimum (tax-deductible) funding requirements as well as maximum tax deductible contributions, both regulated by the tax authorities.Certain eligible participants may elect to receive their pension in a single lump sum payment instead of a monthly payment.Broadly, about 24% of the liabilities are attributable to current employees, 11% to former employees for whom benefit payments have not yet commenced and 65% to current pensioners.In 2022, in the United States Solvay contributed to two multiemployer pension plans under collective bargaining agreements that cover certain of its union-represented employees. Each of the multiemployer plans is a defined benefit pension plan. None of the multiemployer plans provide an allocation of its assets, liabilities, or costs among contributing employers. None of the multiemployer plans provides sufficient information to permit Solvay, or other contributing employers, to account for the multiemployer plan as a defined benefit plan. Accordingly, the company accounts for its participation in each of the multiemployer plans as if they were a defined contribution plan. For multiemployer plans, during 2022 and 2021, the annual contributions paid were less than \u20ac1 million.GermanySolvay sponsors various defined benefit plans in Germany. The largest plans are a closed final-pay plan and an open cash balance plan. Broadly, about 70% of the liabilities are attributable to current pensioners. These plans are partially funded; an additional voluntary contribution of \u20ac155 million to the Contractual Trust Agreement was paid in 2022.BelgiumSolvay sponsors two defined benefit plans in Belgium. These are funded pension plans. The plan for executives has been closed since the end of 2006, and the plan for the White and Blue collars has been closed since 2004. The past service benefits provided under these plans continue to be adapted each year considering annual salary increase and in\ufb02ation (\u201cDynamic management\u201d). In accordance with market practice in Belgium, because of favorable retirement lump sum taxation, most benefits are paid as lump sum. Furthermore, Solvay sponsors two open defined contribution plans, classified as defined benefit plans for accounting purposes due to the minimum guarantees explained hereafter. These are funded pension plans which are open since the beginning of 2007 for the one in favor of the executives and since the beginning of 2005 for the one in favor of the White and Blue collars. Participants may choose to invest their contributions amongst four different investment funds (from \u201cPrudent\u201d to \u201cDynamic\u201d). However, regardless of their choices, the Belgian law foresees that the employer must guarantee a return on employer contribution and on personal contribution, creating that way a potential liability for the Group. Since 2016 the return has been fixed at 1.75% for both types of contributions, at the minimum of the range provided by law since January 1, 2016 (1.75% to 3.75%). At the end of 2022, net liability recognized in the consolidated statement of financial position concerning these plans is not material.Solvay\u2019s plans are administered through the Solvay Pension Fund that operates in compliance with local laws regarding minimum funding, investments principles, audited financial statements, governmental filings, and governance principles. The Pension Fund is managed through a General Assembly and a Board of Directors delegating day-to-day activities to an operational committee.Solvay sponsors a few other smaller pension plans. All these plans are insured.Other PlansThe majority of the obligations relate to pension plans. In some countries (mainly the United States), there are also post-employment medical plans, which represent 4% (4% in 2021) of the total defined benefit obligation.B.3. Financial impactsChanges in net liability In \u20ac million 2022 2021Net amount recognized at beginning of period \ue61f 1,123 \ue61f 1,975Net expense recognized in P&L - Defined benefit plans \ue61f 58 \ue61f 33Actual employer contributions / direct actual benefits paid \ue61f -227 \ue61f -292Acquisitions and disposals \ue61f 0 \ue61f -1Remeasurements before impact of asset ceiling \ue61f -157 \ue61f -564Change in the effect of the asset ceiling limit on remeasurements \ue61f 2 \ue61f 2Reclassifications \ue61f 2 \ue61f -56Currency translation differences \ue61f 9 \ue61f 25Net amount recognized at end of period \ue61f 810 \ue61f 1,123Remeasurements including the impact of asset ceiling \u20ac(155) million comprise: \u00b7 the unfavorable investment return on plan assets (excluding interests reported in the consolidated income statement) for \u20ac910 million; \u00b7 increase in discount rates \u20ac(1,150) million mainly in the United States, United Kingdom, Brazil and Eurozone; \u00b7 increase in in\ufb02ation rate \u20ac60 million for Eurozone; \u00b7 other remeasurements due to changes in the other financial assumptions, demographic and experience effects \u20ac25 million.Net expenseIn \u20ac million 2022 2021Current service costs 38 43Past service costs (including curtailments and settlements) 1 -26Service costs 40 17Interest cost 99 66Interest income -85 -53Net interest 14 13Administrative expenses paid 5 3Net expense recognized in P&L - Defined benefit plans 58 33Remeasurements recognized in other comprehensive income -155\ue61f -562The service costs and administrative expenses of these benefit plans are recognized within cost of sales, administrative costs, research & development costs or operating gains and losses and results from legacy remediation, and the net interest is recognized as a finance expense.In 2022 the Group\u2019s current service costs amount to \u20ac38 million (\u20ac43 million in 2021), of which \u20ac27 million (\u20ac32 million in 2021) related to funded plans and \u20ac11 million (\u20ac11 million in 2021) related to unfunded plans. Net liabilityIn \u20ac million December 31, 2022 December 31, 2021Defined benefit obligations - Funded plans 3,477 4,468Fair value of plan assets at end of period -2,995 -3,896Deficit for funded plans 482 573Defined benefit obligations - Unfunded plans 323 548Deficit / surplus (-) 805 1,120Amounts not recognized as asset due to asset ceiling (recognized in other comprehensive 4 2income) Net liability (asset) 810 1,123Provision recognized 873 1,371Asset recognized -62 -248Changes in defined benefit obligationsIn \u20ac million 2022 2021Defined benefit obligation at beginning of period \ue61f 5,016 5,436Current service costs \ue61f 38 43Past service costs (including curtailments) \ue61f 1 -26Interest cost \ue61f 99 66Employee contributions \ue61f 4 4Settlements \ue61f 0 -2Acquisitions and disposals (-) \ue61f 0 -8Remeasurements in other comprehensive income \ue61f -1,067 -422Actuarial gains and losses due to changes in demographic assumptions \ue61f -26 -36Actuarial gains and losses due to changes in financial assumptions \ue61f -1,100 -322Actuarial gains and losses due to experience \ue61f 59 -64Actual benefits paid \ue61f -324 -302Currency translation differences \ue61f 32 225Reclassification and other movements \ue61f 2 1Defined benefit obligation at end of period \ue61f 3,800 5,016Defined benefit obligations - Funded plans \ue61f 3,477 4,468Defined benefit obligations - Unfunded plans \ue61f 323 548Changes in the fair value of plan assetsIn \u20ac million 2022 2021Fair value of plan assets at beginning of period \ue61f 3,896 3,461Interest income \ue61f 85 53Remeasurements in other comprehensive income \ue61f -910 142Return on plan assets (excluding amounts in net interests including on asset \ue61f -910 142surplus)Employer contributions \ue61f 227 292Employee contributions \ue61f 4 4Administrative expenses paid \ue61f -5 -3Acquisitions / Disposals (-) \ue61f 0 -7Settlements \ue61f 0 -2Actual benefits paid \ue61f -324 -302Currency translation differences \ue61f -23 200Reclassification and other movements \ue61f 0 57Fair value of plan assets at end of period \ue61f 2,995 3,896Actual return on plan assets (including on asset surplus) \ue61f -825 195In 2022, the total return on plan assets, i.e. including interest income, is a loss of \u20ac825 million against \u20ac195 million gain in 2021.In 2022, the Group\u2019s cash contributions amount to \u20ac227 million (\u20ac292 million in 2021), of which \u20ac42 million (\u20ac29 million in 2021) of mandatory contributions to funds, \u20ac155 million (\u20ac236 million in 2021) of voluntary cash contributions, and \u20ac30 million (\u20ac27 million in 2021) of direct benefits payments. In 2022, the voluntary cash contributions were made to improve the funding level of the Germany pension plans (\u20ac155 million) and increase de-risking with the additional plans assets. Except for any significant change in the regulatory environment (see \u201cregulatory risk\u201d above), the Group\u2019s mandatory cash contributions and direct benefits payments in 2023 are expected to be approximately \u20ac71 million.Categories of plan assetsDecember 31, 2022 December 31, 2021Equities 20% 23%Bonds 74% 62%Properties and infrastructures 3% 3%Cash and cash equivalents 2% 5%Others 1% 6%Total 100% 100%With respect to the invested assets, it should be noted that these assets do not contain any direct investment in Solvay shares or in property or other assets occupied or used by Solvay. This does not exclude Solvay shares being included in mutual investment fund type investments.Changes in asset ceiling In \u20ac million 2022 2021Effect of the asset ceiling limit at beginning of period \ue61f 2Change in the effect of the asset ceiling limit on remeasurements \ue61f 2 2Effect of the asset ceiling limit at end of period \ue61f 4 2Actuarial assumptions used in determining the liabilitySome of the retirement plans that Solvay has in place provide annuity payments that are adjusted on a regular basis to mitigate the effects for cost of living increases. The salary growth assumption is used to determine what will be the salary at the end of the career of the individuals, as the defined benefit plans take into account the last salary of the individuals. This assumption includes impacts of both in\ufb02ation and merit increases.The pension growth assumption defines the expected future adjustments for these annuity payments. The plan defines how these annuity payments will be adjusted, and might be linked to in\ufb02ation. Pension growth assumptions mainly apply for the defined benefit retirement plans in the United Kingdom, France and Germany.The long term in\ufb02ation assumption is presented separately as salary growth and pension growth assumptions encompass more variables than in\ufb02ation. Eurozone UK USA 2022 2021 2022 2021 2022 2021Discount rates 3.75% 1.00% 4.75% 2.00% 5.00% 2.75%Expected rates of future salary increases 2.00% - 4.25% 1.75% - 4.00% 2.50% - 3.00% 2.50% - 3.00% 3.00% - 3.50% 3.00% - 3.50%In\ufb02ation 2.00% - 2.50% 1.75% - 2.00% 3.00% 3.00% 2.50% 2.50%Expected rates of pension growth 0.00% - 2.50% 0.00% - 2.00% 2.80% 2.85% NA NAActuarial assumptions used in determining the annual costEurozone UK USA2022 2021 2022 2021 2022 2021Discount rates 1.00% 0.25% 2.00% 1.25% 2.75% 2.25%Expected rates of future salary 1.75% - 4.00% 1.75% - 3.75% 2.50% - 3.00% 2.00% - 2.75% 3.00% - 3.50% 3.00% - 3.50%increases In\ufb02ation 1.75% - 2.00% 1.50% - 1.75% 3.00% 2.75% 2.50% 2.00%Expected rates of pension growth 0.00% - 2.00% 0.00% - 1.75% 2.80% 2.70% NA NAActuarial assumptions regarding future mortality are based on recent country specific mortality tables. These assumptions translate at January 1, 2022 into an average remaining life expectancy in years for a pensioner retiring at age 65:In years \ue61f Belgium France Germany United United KingdomStatesRetiring at the end of the \ue61f \ue61f \ue61f \ue61f \ue61f \ue61freporting\ue61fperiodMale \ue61f 19 25 20 20 21Female \ue61f 22 28 24 23 22Retiring 20 years after the end of the reporting\ue61fperiodMale \ue61f 20 28 23 21 22Female \ue61f 24 31 26 24 24For most countries the mortality assumptions re\ufb02ect actual scheme experience and/or Solvay\u2019s expectations in terms of future mortality improvements.The actuarial assumptions used in determining the employee benefits obligation at December\ue61f31 are based on the following employee benefits liabilities durations:Eurozone United Kingdom United StatesDuration in years 11.1 14.2 9.0Sensitivities on the defined benefits obligation for the post-employment benefitsEach sensitivity amount is calculated assuming that all other assumptions are held constant. The economic factors and conditions often affect multiple assumptions simultaneously.Sensitivity to a change of percentage in the discount rates: In \u20ac million 0.25% increase 0.25% decreaseEurozone -35 37United Kingdom -34 36United States -23 24Others -4 4Total -96 101Sensitivity to a change of percentage in the in\ufb02ation rates:In \u20ac million 0.25% increase 0.25% decreaseEurozone 34 -33United Kingdom 28 -27United States 0 0Others 2 -2Total 64 -62Sensitivity to a change of percentage in salary growth rates:In \u20ac million 0.25% increase 0.25% decreaseEurozone 5 -5United Kingdom 2 -1United States 0 0Others 0 0Total 7 -6Sensitivity to a change of one year on mortality tables \u2013 The table shows impacts when the age of all beneficiaries increases or decreases by one year:In \u20ac million Age correction +1 year Age correction -1 yearEurozone -62 64United Kingdom -48 48United States -28 28Others -5 5Total -143 145",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-156-5": {
"value": "NOTE F31PROVISIONSIn \u20ac million Employee benefits Restructuring Environment Litigation Other TotalDecember 31, 2021 1,574 191 648 62 126 2,600Additions 63 32 194 54 33 377Reversals of unused amounts 0 0 -17 -10 -13 -41Uses -101 -106 -90 -8 -24 -328Use of provisions for additional voluntary contri--155 -155butions (pension plans)Increase/decrease through discounting 3 0 -42 1 0 -39Remeasurements -351 0 0 0 0 -351Currency translation differences 16 2 13 3 1 34Acquisitions and changes in consolidation scope 0 0 0 0 0 0Disposals 0 0 0 0 0 0Other 8 0 -3 -4 0 0December 31, 2022 1,057 119 702 97 123 2,097Of which current provisions 0 81 108 52 57 297The provisions decreased by \u20ac(503) million in 2022, of which \u20ac(517) million for Employee benefits, \u20ac(72) million for Restructuring, partially offset by an increase of \u20ac54 million for Environment and \u20ac35 million for Litigation. Employees benefit includes other long-term benefits and termination benefits.For employee benefits, the deleveraging of \u20ac(517) million is explained as follows: \u00b7 payments (uses) for \u20ac(101) million, and voluntary contributions of \u20ac(155) million to pension funds to deleverage and de-risk; \u00b7 net new liabilities (additions and reversals) for \u20ac63 million; \u00b7 remeasurements, resulting from the changes in assumptions related to the gross liability for \u20ac(1,067) million (mainly due to changes in discount rates); \u00b7 return on plan assets increasing the liability by \u20ac631 million, of which \u20ac(85) million in deduction of \u201cIncrease through discounting\u201d and \u20ac716 million in increase of \u201cRemeasurements\u201d for the assets return exceeding the discount rate, which excludes the impact of remeasurements on the plan assets surplus (\u20ac(195) million); \u00b7 net increase through discounting for \u20ac3 million for the unwinding of the discount rate on the gross liability; \u00b7 other increases in the employee benefit obligations for \u20ac109 million mainly due to the reclassification of the amounts recognized in asset surplus and currency translation differences. Restructuring, environmental and litigation - see note F31.B Provisions other than employee benefits.The movements in Other provisions mainly relate to post-closing adjustments resulting from M&A warranties as well as indemnities for environmental remediation.Management expects provisions (other than employee benefits) to be used (cash outlays) as follows:In \u20ac millionup to 5 years between 5 and 10 years beyond 10 years TotalTotal provisions for environment 361 96 245 702Total provisions for litigation 92 5 97Total provisions for restructuring and other 226 16 241December 31, 2022 679 116 245 1,040F31.B. Provisions other than for employee benefits Accounting policyGeneralProvisions are recognized when (a) the Group has a present obligation (legal or constructive) as a result of a past event, (b) it is probable that the Group will be required to settle the obligation, and (c) a reliable estimate can be made of the amount of the obligation.The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount is the present value of expenditures required to settle the obligation. Impacts of changes in discount rates are generally recognized in the financial result.When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received when the Group settles the obligation.RestructuringsA restructuring provision is recognized when the Group has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the entity.Environmental remediation costsEnvironmental liabilities are mainly related to non-ongoing activities (shut-down sites, discontinued activities or divested activities where Solvay maintains certain commitments) and, to a lower extent, to ongoing activities (see comments below).An environmental provision is recognized, in accordance to IAS 37, when there is a current legal or constructive obligation resulting from past events which will result in a probable out\ufb02ow of resources (expenses / cash outs) to settle it and for which a reliable estimate of such out\ufb02ows and timing can be made.The environmental expenses encompass, but are not limited to, the following key matters \u00b7 Sampling and analytical costs for soil and ground water monitoring \u00b7 Cost related to dismantling when required to meet a remediation or permit obligation \u00b7 Asbestos removal when obligated by regulation \u00b7 Environmental investigations and studies (Risk Assessments, Phase I and II soil and groundwater) The closing amount of the environmental provisions is based on the net present value of the future cash \ufb02ows needed, for current and future years, to settle remediation obligations. Forecast expenditures are based on external consultant estimates, where appropriate and possible. Future expenditures are forecast and revised biannually and validated quarterly by Solvay finance and suitably qualified industrial experts led by the Group Environmental Rehabilitation Director and benefit from inputs of legal department staff for the evolution of Environmental Regulations.In the absence of probable obligations, a contingent liability may be disclosed to represent the future possible liability. In some cases, contingent liabilities cannot be quantified. See Note F36 Contingent assets, liabilities and financial guarantees.Restructuring provisionsIn 2022, these provisions amount to \u20ac119 million, compared with \u20ac191 million at the end of 2021.The provisions at the end of 2022 mainly relate to the restructuring charges for the simplification of all support functions in the frame of the Group\u2019s simplification and transformation program, including the strategic transformation measures. Environmental provisionsThese provisions amount to \u20ac\ue61f702\ue61fmillion at the end of 2022, compared with \u20ac\ue61f648\ue61fmillion at the end of 2021, and pertain to: \u00b7 mines and drilling operations to the extent that legislation and/or operating permits in relation to quarries, mines and drilling operations contain requirements to pay compensation to third parties. Most of these provisions, based on local expert advice, can be expected to be used over a 1-20\ue61fyear horizon and amount to \u20ac\ue61f125 million; \u00b7 the dismantling of the last mercury electrolysis activities was completed in 2019. The remaining provisions related to those activities will be used for the management of contamination of soil and groundwater, mostly over the next 20 years; \u00b7 lime dikes (settling ponds related mainly to soda ash plant), dump at sites and third party dump sites (linked to several industrial activities). These provisions have an horizon of 1 to 20 years; \u00b7 various types of pollution (organic, inorganic) coming from miscellaneous chemical productions; these provisions mainly cover discontinued activities or closed plants. Most of these provisions have a horizon of 1 to 20\ue61fyears; \u00b7 Solvay Specialty Polymers made significant progress toward determining the scope of remedial activities pertaining to the per- and poly\ufb02uoroalkyl substances (PFAS) related to the West Deptford, New Jersey site. Due to recent technical studies and in cooperation with the local authorities, Solvay was able to reasonably estimate future expenses to address this remediation. As a consequence, a corresponding provision of \u20ac93 million was recognized in Q3 2022. The resulting cash out\ufb02ows are expected to occur over a minimum 20 year period with 50% of the out\ufb02ows occurring within the next 2 years.\ue61f This provision reduces, though does not eliminate, the associated contingent liabilities previously reported.The variation of Environmental provisions also were impacted from the revised assumptions of higher in\ufb02ation rates, partially offset by the impact of higher discount rates reducing the present value of the overall liability by \u20ac(59) million. This effect, combined with the unwinding of the opening liabilities for \u20ac17 million resulted in a net decrease of \u20ac(42) million related to discounting. The estimated amounts are discounted based on the probable date of settlement, and are periodically adjusted to re\ufb02ect the passage of time.The breakdown of the environmental provisions and related uses for the main Countries/Regions is reported here below:December 31, 2022 December 31, 2021In \u20ac million Provisions In % ProvisionsUse of Provisions In % Provisions Use of ongoing provisionsongoing provisionsactivitiesactivitiesFrance 145 21% 1 -24 152 24% -13Germany 112 16% 7 -5 117 18% 7 -4Rest of Europe 144 21% 5 -15 161 25% 5 -14North America 226 32% 0 -37 151 23% -24Rest of the world 74 11% 0 -8 66 10% -6Total 702 100% 12 -90 648 100% 13 -61Provisions for litigationProvisions for litigation refer to indirect tax and legal exposures. They amount to \u20ac\ue61f97\ue61fmillion in 2022 (\u20ac62 million in 2021). The balance at the end of 2022 relates to indirect tax risks (\u20ac\ue61f11\ue61fmillion) and legal claims (\u20ac\ue61f86\ue61fmillion).Other provisionsOther provisions relate to the shutdown or disposal of activities and amount to \u20ac\ue61f123\ue61fmillion in 2022, compared with \u20ac\ue61f126\ue61fmillion at the end of 2021. NOTE\ue61fF36CONTINGENT ASSETS, LIABILITIES AND FINANCIAL GUARANTEESAccounting policyA contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Group.Contingent assets are not recognized in the consolidated financial statements since this may result in the recognition of income that may never be realized. However, when the realization of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate. Contingent assets are assessed continually to ensure that developments are appropriately re\ufb02ected in the consolidated financial statements. If it has become virtually certain that an in\ufb02ow of economic benefits will arise, the asset and the related income are recognized in the consolidated financial statements of the period in which the change occurs. If an in\ufb02ow of economic benefits has become probable, the Group discloses the contingent asset.A contingent liability is:(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or(b) a present obligation that arises from past events but is not recognized because:(i) it is not probable that an out\ufb02ow of resources embodying economic benefits will be required to settle the obligation; or(ii) the amount of the obligation cannot be measured with sufficient reliabilityContingent liabilities are not recognized in the consolidated financial statements, except if they arise from a business combination. They are disclosed unless the possibility of an out\ufb02ow of economic benefits is remote.Financial guarantees are contracts that require the Group to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.In order to avoid double counting, only guarantees in excess of liabilities recognized or disclosures made elsewhere in the Group's consolidated financial statements are disclosed in this note.\ue61f Regarding financial guarantees, all financial guarantees of the Group are presented in this note.In \u20ac million December 31, 2022 December 31, 2021Contingent assets 91 91Financial guarantees Rusvinyl 0 83Guarantees for pensions 378 348Environmental contingent liabilities 315 301Contingent liabilities 693 733Contingent AssetFollowing an arbitration procedure that began in 2012, on June 22, 2021 the ICC Arbitration Court in Geneva (CH) issued a partial award in favor of Solvay Specialty Polymers Italy SpA, ordering Edison S.p.A. (Edison) to pay \u20ac91.632 million for the losses, damages and costs incurred up to the end of 2016 in relation to certain environmental issues at the Spinetta Marengo and Bussi sites, previously owned and operated by (Mont)Edison SpA and Ausimont SpA. A further phase of the arbitration proceeding, expected to end in 2024, will define the quantification of the additional losses, damages and costs from 2017 onwards, as well as the interests applicable to the amount awarded and the costs of litigation, to be reimbursed to Solvay Specialty Polymers Italy SpA. No income was recognized during either 2021 or 2022 in relation to the partial award, pending Edison\u2019s appeals against the enforcement of the partial award.On January 23, 2023, the Group received a favorable ruling from the Court of Appeal of Milan which rejected Edison's appeal against the enforcement of the partial award, making it definitively enforceable in Italy.\ue61f On February 8, 2023, Edison settled the \u20ac91.632 million partial award in full with Solvay.\ue61f Contingent LiabilitiesThe financial guarantees related to Rusvinyl, the joint venture with SIBUR for the operation of a PVC plant in Russia were released in Q3 2022 following the full repayment of Rusvinyl financial debt. The guarantees for pensions are related to the main UK Pension Funds (\u20ac358 million) \u2013 See note F31.B.2. Description of obligations. Such corresponds to the amount by which the guarantee exceeds the recognized pension liability (as at December 31, 2022) or the recognized plan assets surplus as at (December 31, 2021). This guarantee applies to the pension liability measured based on a local UK regulatory basis (prudential basis) plus an allocation for market risk, which is higher when compared to the IAS\ue61f19 methodology. The probability of the guarantees being called is considered to be highly remote.Contingent liabilities of \u20ac315 million above relate to environmental remediation matters that can be estimated with sufficient reliability.Generally, in line with good business practice, we are not reporting any pending or threatened proceeding, which has not matured, and where the probability of existing or future exposure is unlikely or uncertain, where financial impact is not estimable and for which we are not able to quantify contingent liabilities.In the United States, Solvay Specialty Polymers USA, LLC (SpP) is a defendant in 35 separate individual and class action lawsuits relating to its historical use of per- and poly\ufb02uoroalkyl substances (PFAS). The vast majority of these cases (30) are pending in the federal and state courts in the state of New Jersey, in the US, and the majority (27) are claims by private plaintiffs seeking medical monitoring or compensation for alleged personal injury or other alleged economic loss. Three (3) of the cases involve civil claims by separate US state governmental authorities\u2014New Jersey, Michigan and Illinois\u2014seeking various damages for alleged violations of state environmental laws, including natural resource damages. The State of New Jersey also seeks the environmental cleanup of PFAS pollution allegedly caused by a single operating facility of the subsidiary in New Jersey. Two (2) cases relate to allegations that contamination from the same operating facility caused contamination to a local municipal well. Finally, three (3) of the cases allege that products purchased from the subsidiary caused contamination elsewhere. Overall, the number of these cases remains low in comparison to other industry participants. Solvay continues to dispute the merits of these claims and defend itself accordingly. In all of these cases, the plaintiffs have the burden of proof against all defendants. See note F31.B Provisions Other than Employee Benefits for additional information. In Italy, there are several pending litigations: \u00b7 (a) With reference to the Rosignano industrial site, certain criminal preliminary investigations continue to be pending before the Criminal Court of Livorno regarding the alleged contamination of certain areas outside the site;\ue61f \u00b7 (b) With regard to the Spinetta industrial site, in December 2022 the Public Prosecutor Office of the Court of Alessandria closed the preliminary investigations started at the end of 2020 regarding certain alleged environmental violations of two Solvay managers. The Public Prosecutor Office should decide to request the dismissal of this provisional charge or alternatively the case should go to trial by the end of Q1, 2023; \u00b7 (c) With regard to the Bussi industrial site, sold by Solvay in 2016 with the surrounding area sold in 2018, an administrative litigation is pending in relation to the identification of the polluter of the industrial site.\ue61fBased on the overall assessment, including compliance with applicable laws and regulations and the unlikely or uncertain probability of existing or future exposure, as well as undefined financial impact, which is not estimable at this time, no additional provisions have been recorded in association with these litigations and contingent liabilities cannot be quantified.",
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"value": "1. F31.A. Provisions for employee bene\ue782tsAccounting policyGeneralThe Group\u2019s employees are offered various post-employment benefits, other long-term employee benefits, and termination benefits as a result of legislation applicable in certain countries, and contractual agreements entered into by the Group with its employees or constructive obligations.The post-employment benefits are classified as defined contribution or defined benefit plans.Defined contribution plansDefined contribution plans involve the payment of fixed contributions to a separate entity, and release the employer from any subsequent obligation, as this separate entity is solely responsible for paying the amounts due to the employee. The expense is recognized when an employee has rendered services to the Group during the period.Defined benefit plansDefined benefit plans concern all plans other than defined contribution plans, and include: \u00b7 post-employment benefits: pension plans, other post-employment obligations and supplemental benefits such as post-employment medical plans.Taking into account projected final salaries on an individual basis, post-employment benefits are measured by applying a method (projected unit credit method) using assumptions involving discount rate, life expectancy, turnover, wages, annuity revaluation and medical cost in\ufb02ation. The assumptions specific to each plan take into account the local economic and demographic contexts.The discount rates are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligation.The amount recognized under post-employment obligations corresponds to the difference between the present value of future obligations and the fair value of the plan assets funding the plan, if any. If this calculation gives rise to a deficit, an obligation is recognized in liabilities. Otherwise, a net asset limited to the lower of the surplus in the defined benefit plan and the present value of any future plan refunds or any reduction in future contributions to the plan is recognized. Therefore the amount at which such an asset is recognized in the statement of financial position may be subject to a ceiling.The defined benefit cost consists of service cost and net interest expense (based on discount rate) on the net liability or asset, both recognized in profit or loss, and remeasurements of the net liability or asset, recognized in other comprehensive income.Service cost consists of current service cost, past service cost resulting from plan amendments or curtailments and settlement gains or losses.The interest expenses arising from the reverse discounting of the benefit obligations, the financial income on plan assets (determined by multiplying the fair value of the plan assets by the discount rate) as well as interest on the effect of the asset ceiling are recognized on a net basis in the net financial charges (cost of discounting of provisions).Remeasurements of the net liability or asset consist of: \u00b7 actuarial gains and losses on the benefit obligations arising from experience adjustments and/or changes in actuarial assumptions (including the effect of changes in the discount rate) recognized in other comprehensive income; \u00b7 Changes as a consequence of plan amendments, recognized in profit or loss; \u00b7 the return on plan assets (excluding amounts in net interest) and changes in the limitation of the net asset recognized.Other long-term employee and termination benefitsOther long-term employee benefits related to long service benefits granted to employees according to their seniority in the Group. Termination benefits include early pension plans. Other long-term employee and termination benefits are accounted for in the same way as post-employment benefits but remeasurements are fully recognized in the net financial charges during the period in which they occur.The actuarial calculations of the main post-employment obligations and other long-term benefits are performed by independent actuaries.",
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"value": "Other long-term employee and termination benefitsOther long-term employee benefits related to long service benefits granted to employees according to their seniority in the Group. Termination benefits include early pension plans. Other long-term employee and termination benefits are accounted for in the same way as post-employment benefits but remeasurements are fully recognized in the net financial charges during the period in which they occur.",
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"value": "The environmental expenses encompass, but are not limited to, the following key matters \u00b7 Sampling and analytical costs for soil and ground water monitoring \u00b7 Cost related to dismantling when required to meet a remediation or permit obligation \u00b7 Asbestos removal when obligated by regulation \u00b7 Environmental investigations and studies (Risk Assessments, Phase I and II soil and groundwater) The closing amount of the environmental provisions is based on the net present value of the future cash \ufb02ows needed, for current and future years, to settle remediation obligations. Forecast expenditures are based on external consultant estimates, where appropriate and possible. Future expenditures are forecast and revised biannually and validated quarterly by Solvay finance and suitably qualified industrial experts led by the Group Environmental Rehabilitation Director and benefit from inputs of legal department staff for the evolution of Environmental Regulations.In the absence of probable obligations, a contingent liability may be disclosed to represent the future possible liability. In some cases, contingent liabilities cannot be quantified. See Note F36 Contingent assets, liabilities and financial guarantees.",
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"value": "NOTE\ue61fF32 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENTAccounting policyGeneralFinancial assets and liabilities are recognized when, and only when Solvay becomes a party to the contractual provisions of the instrument. Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates the expected cash \ufb02ows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts.Derivative financial instrumentsA derivative financial instrument is a financial instrument or other contract within the scope of IFRS 9 Financial Instruments with all three of the following characteristics: \u00b7 its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the \u2018underlying\u2019); \u00b7 it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; \u00b7 it is settled at a future date.The Group enters into a variety of derivative financial instruments (forward, future, option, collars and swap contracts) to manage its exposure to interest rate risk, foreign exchange rate risk, and commodity risk (mainly utility and CO emission rights price risks).2As explained above, derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in income or expense, unless the derivative is designated and effective as a hedging instrument. The Group designates certain derivatives as hedging instruments of the exposure to variability in cash \ufb02ows with respect to a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss (cash \ufb02ow hedges).A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivative instruments (or portions of them) are presented as non-current assets or non-current liabilities if the remaining maturity of the underlying settlements is more than twelve months after the reporting period. Other derivative instruments (or portions of them) are presented as current assets or current liabilities.The following table presents the financial assets and liabilities as current or non-current according to their classification under IFRS 9.December 31, 2022 December 31, 2021In \u20ac million Classification Carrying amount Carrying amountNon-current assets - Financial instruments \ue61f 464 553Equity instruments measured at fair value through Financial assets measured at fair value through 24 51other comprehensive incomeother comprehensive incomeEquity instruments measured at fair value through Financial assets measured at fair value through 47 62profit or lossprofit or lossLoans and other non-current assets (excluding pension fund surpluses and long-term inventory Financial assets measured at amortized cost 197 252balance)Financial instruments - Operational \ue61f 196 187Held for trading Held for trading 130 108Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 66 79cash \ufb02ow hedge relationshipCurrent assets - Financial instruments \ue61f 4,093 4,300Trade receivables Financial assets measured at amortized cost 2,026 1,805Other financial instruments \ue61f 206 229Other marketable securities >3 months Financial assets measured at amortized cost 43 70Currency swaps Held for trading 1 4Other current financial assets Financial assets measured at amortized cost 162 155Financial instruments - Operational \ue61f 929 1,326Held for trading Held for trading 553 1,101Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 376 225cash \ufb02ow hedge relationshipCash and cash equivalents Financial assets measured at amortized cost 932 941Total assets - Financial instruments \ue61f 4,557 4,853Non-current liabilities - Financial instruments \ue61f 2,753 2,907Financial debt \ue61f 2,450 2,576Bonds Financial liabilities measured at amortized cost 1,994 2,112Other non-current debts Financial liabilities measured at amortized cost 42 55Lease liabilities IFRS 16 - Non-current portion Lease liabilities measured at amortized cost 413 408Other liabilities Financial liabilities measured at amortized cost 112 153Financial instruments - Operational \ue61f 192 178Held for trading Held for trading 146 107Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 46 71cash \ufb02ow hedge relationshipCurrent liabilities - Financial instruments \ue61f 3,646 4,414Financial debt \ue61f 510 773Short-term financial debt Financial liabilities measured at amortized cost 397 673Currency swaps Held for trading 2 3Lease liabilities IFRS 16 - Current portion Lease liabilities measured at amortized cost 111 97Trade payables Financial liabilities measured at amortized cost 2,296 2,131Financial instruments - Operational \ue61f 676 1,350Held for trading Held for trading 492 1,118Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 183 232cash \ufb02ow hedge relationshipDividends payables Financial liabilities measured at amortized cost 165 160Total liabilities - Financial instruments \ue61f 6,399 7,320In 2021 and 2022, long-term CO inventory balances reported are not financial assets and hence are not included in the table above. They are presented 2as other non-current assets. F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.Income and expenses on financial instruments recognized in other comprehensive income include the following:In \u20ac million Cash \ufb02ow hedgesForeign currency Interest rate risk Commodity risk Risk on Solvay Totalriskshare price2022 2021 2022 2021 2022 2021 2022 2021 2022 2021January 1 -7 16 7 2 2 1 17Recycling from other comprehensive income of derivative financial 31 -9 \ue61f \ue61f -257 -78 \ue61f \ue61f -226 -87instruments designated in a cash \ufb02ow hedge relationshipEffective portion of changes in fair value -10 -14 \ue61f \ue61f 317 85 -1 306 71of cash \ufb02ow hedgeDecember 31 13 -7 67 7 1 2 81 1Conventionally, (+) indicates an increase and (-) a reduction in equity.Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). Cash \ufb02ow hedgeThe Group uses derivatives to hedge identified foreign exchange rate risks. It documents those as hedging instruments unless it hedges a recognized financial asset or liability when generally no cash \ufb02ow hedge relationship is documented. Most hedges are transaction related.At the end of 2022, the Group had mainly hedged highly probable sales in foreign currencies (short position) in a nominal amount of US$ 839 million (\u20ac786 million) and JP\u00a5 15,902 million (\u20ac113 million). All cash \ufb02ow hedge contracts that exist at the end of December 2022 will be settled within the next 12 months, and will impact profit or loss during that period.The following table details the notional amounts of Solvay\u2019s derivatives contracts outstanding at the end of the period:NOTIONAL AMOUNTSDecember 31, 2022\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of of exposure exchange rate hedge hedging instrumentthe the risk expo-hedgedper risk categoryreserve (1) (1)instrumentsure\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets LiabilitiesCash \ufb02ow hedges - Forecasted sales and (3)purchasesJPY/EUR -71 -147 48% 139.17 0 1 1JPY/USD -42 -87 48% (2) 132.47 -1 1 2Total JPY -113 -234 -1 1 2USD/BRL -187 -285 66% (2) 5.28 3 3 0USD/CNY -157 -353 45% (2) 6.82 -1 1 2USD/EUR -340 -674 50% 1.05 8 10 2USD/MXN -66 -135 49% (2) 21.01 3 3 0USD/THB -36 -79 45% 34.69 1 1 0Total USD -786 -1,525 14 19 5Total -899 -1,759 13 20 7(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2023.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates.In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.December 31, 2021\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of the of exposure exchange rate hedge hedging instrument (1)the instru-risk exposurehedgedper risk categoryreserve (1)ment\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets Liabilities (3)Cash \ufb02ow hedges - Forecasted sales and purchases\ue61fJPY/EUR -45 -110 41% \ue61f 130.80 1(2)JPY/USD -31 -64 48%111.66 1 1Total JPY -76 -174 \ue61f \ue61f \ue61f 1 1(2)USD/BRL -146 -194 75%5.26(2)USD/CNY -122 -225 54%6.58 3 3USD/EUR -314 -634 50% \ue61f 1.18 12 12(2)USD/MXN -40 -89 45%21.73 2 2USD/THB -20 -44 45% \ue61f 32.51 1 1Total USD -642 -1,187 \ue61f \ue61f \ue61f 17 4 13Total -718 -1,361 \ue61f \ue61f \ue61f 18 5 13(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2022.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Interest rate risksSee the Financial risk in the Management of risks section of this annual report for additional information on the interest rate risks management.Interest rate risk is managed at Group level.The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and \ufb02oating interest rates. Interest rate risk is managed at Group level by maintaining an appropriate mix between fixed and \ufb02oating rate borrowings.Interest rate exposure by currency is summarized below:In \u20ac million December 31, 2022 December 31, 2021Currency Fixed rate Floating rate Total Fixed rate Floating rate TotalFinancial debt \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR -1,642 -32 -1,673 -1,923 -18 -1,941USD -1,153 -11 -1,163 -1,246 -23 -1,269BGN 0 -33 -33 0 -4 -5SAR 0 0 0 \ue61f -18 -18INR -11 -6 -17 -39 0 -39KRW -19 -7 -26 -21 -1 -22THB -12 0 -12 -11 0 -11BRL -12 0 -12 -9 -2 -11Other -22 -1 -23 -28 -4 -32Total -2,870 -90 -2,959 -3,277 -71 -3,349Cash and cash equivalents \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR \ue61f 201 201 \ue61f 206 206USD \ue61f 320 320 \ue61f 458 458CAD \ue61f 53 53 \ue61f 5 5THB \ue61f 28 28 \ue61f 36 36SAR \ue61f 11 11 \ue61f 15 15BRL \ue61f 177 177 \ue61f 53 53CNY \ue61f 22 22 \ue61f 35 35KRW \ue61f 7 7 \ue61f 7 7JPY \ue61f 30 30 \ue61f 33 33Other \ue61f 83 83 \ue61f 93 93Total \ue61f 932 932 \ue61f 941 941Other financial instruments \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fCNY \ue61f 43 43 \ue61f 70 70EUR \ue61f 185 185 \ue61f 160 160SAR \ue61f 4 4 \ue61f 21 21Other \ue61f 4 4 \ue61f 8 8Total \ue61f 236 236 \ue61f 259 259\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fTotal -2,870 1,078 -1,791 -3,277 1,128 -2,149At the end of 2022, approximately \u20ac2.87 billion of the Group\u2019s gross debt was at fixed-rate, and is largely comprised of: \u00b7 Senior EUR Bonds for a total of \u20ac1,100 million maturing in 2027 and 2029 (carrying amount of \u20ac1,094 million); \u00b7 Remaining portion (US$ 163 million) of the US$ Senior Bonds 2025 of US$ 250 million (carrying amount of \u20ac152 million); \u00b7 Senior US$ Bond for a total of US$ 800 million (carrying amount of \u20ac748 million); \u00b7 IFRS 16 lease liability for a total of \u20ac524 million (carrying amount of \u20ac524 million).The \ufb02oating rate debts that are subject to interest rate swaps are discussed below. The impact of interest rate volatility at the end of 2022 compared to 2021 is the following:Sensitivity to a + 100bp movement in Sensitivity to a - 100bp movement EUR market interest ratesin EUR market interest ratesIn \u20ac million 2022 2021 2022 2021Profit or loss -1 0 1 0The sensitivity to interest rates\u2019 volatility remains insignificant at the end of 2022 compared to 2021 as the \ufb02oating rate debt is very limited.Interest rate risk hedged by instrument accounted for as held for tradingIn \u20ac million Notional amount Fair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021Held for trading 0 18Total 0 18The notional amount reported in 2021 under \u201cheld for trading\u201d is mainly explained by a cross currency swap contracted in May 2017 and settled in the course of 2022 to mitigate the volatility (forex and interest rate) of the external financing set up for the Group\u2019s HPPO joint operation (Saudi Hydrogen Peroxide Company) 50/50 with Sadara in Saudi Arabia (notional amount \u20ac18 million corresponding to 50%). Interest rate risk hedged by instrument accounted for as a hedging instrument in a cash \ufb02ow hedgeIn 2022, there are no outstanding interest rate instruments accounted for under cash \ufb02ow hedges.\ue61fOther market risks\u2014 Utility and CO2 price risksThe Group purchases a large portion of its coal, gas and electricity needs in Europe and the United States based on \ufb02uctuating liquid market indices. Moreover, the Group purchases raw materials with a price formula referring to market indices (e.g. benzene). In order to reduce the cost volatility, the Group has developed a policy for exchanging variable price against fixed price through derivative financial instruments. Most of these hedging instruments can be documented as hedging instruments of the underlying purchase contracts. Utility purchase contracts at fixed price with a physical delivery for use in the Group's operations are qualified as own use contracts and constitute a natural hedge. Those have not been included in this note. Similarly, the Group's exposure to CO price is partially hedged by forward purchases of European Union Allowances (EUA). In 2021, forward purchases 2with physical delivery for use in the Group's operations were qualified as own use contracts (not derivatives). In 2022, in view of both increased volatility in energy and CO markets and the plan to separate Solvay SA into two independent groups, the Group reconsidered the conditions of the own use 2exemption. Accordingly the entire portfolio of CO emission rights forward purchases has been accounted for at the end of Q2 2022 in accordance with 2the general rules of IFRS\ue61f9, and a profit of \u20ac322 million has been classified as \u201cOther operating gains and losses\u201d. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.Finally, some exposure to gas, coal and electricity prices may arise from the production of electricity on Solvay sites (mostly from cogeneration units in Europe), which can be hedged by means of forward purchases and forward sales or optional schemes. In this case, cash \ufb02ow hedge accounting is applied.Financial hedging of utility and CO emission rights price risks is managed centrally by Energy Services on behalf of the Group entities.2Energy Services also carries out trading transactions with respect to utility and CO.2The following tables detail the notional principal amounts and fair values of utility and CO derivative financial instruments outstanding at the end of the 2reporting period:Held for trading Notional amount of Notional amount of the instrument Fair value of the Fair value of the (1)the instrument(in units)instrument - Assetinstrument - LiabilityDecember 31 2022 2021 2022 2021 2022 2021 2022 2021In \u20ac million (except where indicated)Coal \ue61f Tons \ue61fPower 922 1,189 7,318,874 21,005,859 MWh 307 764 -306 -781Standard Quality Gas 619 613 13,372,959 27,701,363 MWh 347 434 -282 -437CO10 11 707,550 206,294 Tons 21 4 -46 -52Total 1,550 1,813 \ue61f \ue61f 675 1,202 -634 -1,223(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.The amounts presented in the tables hereafter include hedging needs of the GBUs of the Group that are sourced through Energy Services, and not the full Group utility hedging needs.December 31, 2022\ue61fCash \ufb02ow Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair value Fair hedgeamount amount of tional amount tage of hedge \ufb02ow of the in-value of the the instru-amount of the risk expo-price hedge strument of the instru-ment (in of the exposure (in sure per risk re-- Assetinstru- (1) mentunits)risk ex-units)hedgedcatego-servement posurery- Lia-bilityIn \u20ac million (except where indicated)\ue61fBenzeneCoalEUR/Power 154 1,078,973 MWh 702 3,505,469 MWh 31% 13271 40 -111MWhStandard Quality EUR/330 13,525,810 MWh 1,650 34,722,420 MWh 39% 33-156 240 -84GasMWhCO2368 5,440,050 Tons 1,150 24,096,508 Tons 45% 61 EUR/Tons 152 142 -26Total 899 67 422 -221(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.December 31, 2021Cash \ufb02ow hedge Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair Fair amount amount of tional amount tage hedge \ufb02ow value value of the the instru-amount of the risk of ex-price hedge of the of the instru-ment (in of the exposure (in posure per risk re-instru-instru- (1) mentunits)risk ex-units)hedgedcatego-servement - ment - posureryAssetLiabilityIn \u20ac million (except where indicated)\ue61fBenzene 1 1,477 Tons 1 1,479 Tons 100% 556 EUR/tonCoal 17 243,000 Tons 62 702,041 Tons 35% 77 USD/ton 5 6 -1Power 154 2,506,335 MWh 607 3,591,600 MWh 70% 62 EUR/MWh -270 1 -271Standard Quality 254 13,648,389 MWh 954 24,096,508 MWh 57% 19 EUR/MWh 273 291 -18GasTotal 426 \ue61f \ue61f 1,625 \ue61f \ue61f \ue61f \ue61f \ue61f 8 298 -290(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates. \u00b7 In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.In the wake of the European energy crisis impacting gas consumption in several countries and due to the European Union's sanctions on the sourcing of gas and coal from Russia, the Group revised the expected activity of several of its cogeneration units in Europe in Q3 2022 with a view to both preserving business continuity and reducing gas consumption. These developments triggered the need to reassess the probability and conditions of future energy consumption at each site when updating the Cash Flow Hedge (CFH) documentation. As part of this reassessment, the Group identified certain hedges for which the underlying future energy purchases are no longer highly probable (but still expected to occur) or subject to modified purchasing conditions, resulting in those hedges ceasing to meet the qualifying criteria for CFH accounting during Q3 2022. The discontinuation of hedge accounting resulted in a favorable \u20ac39 million accumulated mark-to-market that will remain in Other Comprehensive Income with future recycling to the consolidated income statement as the underlying transactions occur (\u20ac18 million in 2022, \u20ac18 million in 2023).Fair value hedgeOn December 31, 2022, the Group covers a part of its CO emission rights in inventory by forward sales of CO emission rights to a related party. The 22Group qualifies this hedging strategy as Fair value hedge. The change in fair value of forward sales are accounted in profit and loss, concomitantly with the revaluation of the CO emission rights held in inventory.2The Group has established a 1:1 hedge ratio for the underlying risk of the forward sales of CO emission rights to the related party that is identical to the 2hedged risk component.\ue61fThe impact of the hedging instrument on the statement of financial position as at December 31, 2022 is, as follows:December 31, 2022Balance sheet Change in fair value used for Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets Liabilities\ue61f In Tons In \u20ac million In \u20ac million \ue61f In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f\ue61f\ue61f \ue61fHedgeCO emission Financial 286,500 1\ue61f-6\ue61f-6rights forwardsinstrumentDecember 31, 2022Balance sheet Change in fair value used for \ue61f Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets LiabilitiesIn Tons In \u20ac million In \u20ac million In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fHedgeCO emission 286,500 -1 7 \ue61f Inventories 6 \ue61frights forwardsThe sensitivities of commodity derivative financial instruments as of December 31, 2022 are presented below.The sensitivities were defined based on the price levels and volatility levels of each commodity. These assumptions do not constitute an estimation of future market prices and the sensitivities presented are not representative of future changes in Solvay's equity and results. \ue61fDecember 31, 2022Price change Other comprehensive income Profit or lossIn \u20ac millionNatural gas +10\u20ac/MWh -109 - Natural gas -10\u20ac/MWh 109 - Electricity +30\u20ac/MWh 32 1 Electricity -30\u20ac/MWh -32 -1CO Emission rights +5\u20ac/T 28 -2CO Emission rights -5\u20ac/T -28 -2Performance Share Units Plan (PSU) risk on Solvay share priceIn order to neutralize the volatility of the Solvay share price, which will impact the liability valuation relating to the cash settled PSU plans (with related employer charges), the Group entered into equity swaps covering approximately 100% of the risk. In 2022, a liability of \u20ac39 million, recognized for 2020 and 2021 PSU plans (in 2021, \u20ac24 million for the 2020 and 2021 PSU plans) corresponds to the best estimate of the amount due at maturity.Credit riskSee the Financial risk in the Management of risks section of this annual report for additional information on credit risk management. The Group continuously monitors the credit risk of important business partners. The Group engages in transactions only with financial institutions with a good credit rating. The Group monitors and manages exposures to financial institutions within approved counterparty credit limits and credit risk parameters in order to mitigate the risk of default. For financial guarantees, see note F36 Contingent assets, liabilities and financial guarantees.The Group recognizes expected credit losses on all of its trade receivables: it applies the simplified approach and recognizes lifetime expected losses on all trade receivables, using a provision matrix in order to calculate the lifetime expected credit losses for trade receivables, using historical information on defaults adjusted for the forward-looking information. The Group classifies the customers and their related receivables in various rating classes, based on the risks\u2019 grading attributed to the customers and on the aging balance of receivables. As such, for all receivables overdue below six months, the Group considers percentages within a range between 0.005% and 4.204%, depending on the rating class. For all receivables overdue in excess of six months, the Group considers a rate of 50% or of 100%, depending on the rating class. The customer\u2019s grading is reviewed annually for customers assessed as low risk profile, and every six months for customers assessed as higher risk profile. There is no significant concentration of credit risk at Group level because the receivables\u2019 credit risk is spread over a large number of customers and markets.The ageing of trade receivables, financial instruments - operational, loans and other non-current assets is as follows:\ue61f \ue61f With expected loss allowance, not credit-impairedDecember 31, 2022In \u20ac millionTotal Credit-not past less than between 30 between 60 and more than 90 impaireddue30 days and 60 days 90 days past duedays past duepast duepast dueTrade receivables 2,098 68 1,986 33 6 1 3Trade receivables - allowance -72 -67 -2 0 \ue61f \ue61f -2Trade receivables - net 2,026 1 1,984 33 6 1 1Financial instruments - 1,125 \ue61f 1,125 \ue61f \ue61f \ue61f \ue61foperationalLoans and other non-current assets 312 12 300 0 \ue61f \ue61f \ue61fLoans and other non-current assets -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61f- allowanceLoans and other non-current 301 0 300 0 0 0 0assets - netTotal 3,452 1 3,410 33 6 1 1The Loans and other non-currents assets do not include the long-term inventory balance.December 31, 2021\ue61f With expected loss allowance, not credit-impairedIn \u20ac millionTotal Credit-im-not past less than between 30 between 60 more than paireddue30 days and 60 days and 90 days 90 days past duepast duepast duepast dueTrade receivables 1,857 50 1,765 36 2 1 3Trade receivables - allowance -51 -49 -2 \ue61f \ue61f \ue61f -1Trade receivables - net 1,805 2 1,763 36 2 1 2Financial instruments - operational 1,513 \ue61f 1,513 \ue61f \ue61f \ue61f \ue61fLoans and other non-current assets 511 11 500 0 \ue61f \ue61f \ue61fLoans and other non-current assets - -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61fallowanceLoans and other non-current assets 500 0 500 0 0 0 0- netTotal 3,818 2 3,776 36 2 1 2The table below presents the allowances on trade receivables:In \u20ac million2022 2021January 1 -51 -39Additions -22 -19Uses 2 5Reversal 1 2Currency translation differences -2 0December 31 -72 -51Liquidity riskSee the Financial risk in the Management of risks section of this annual report for additional information on the liquidity risk management.Liquidity risk relates to Solvay\u2019s ability to service and refinance its debt (including notes issued) and to fund its operations.This depends on its ability to generate cash from operations and not to overpay for acquisitions.The Finance Committee gives its opinion on the appropriate liquidity risk management for the Group\u2019s short, medium and long term funding and liquidity management requirements.The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash \ufb02ows, and by matching the maturity profiles of financial assets and liabilities.The Group staggers the maturities of its financing sources over time in order to limit amounts to be refinanced each year.The following tables detail the Group\u2019s remaining contractual maturity for its financial liabilities with contractual repayment periods.\ue61fThe tables have been prepared using the discounted cash \ufb02ows of financial liabilities, based on the earliest date on which the Group can be required to pay. The following tables present discounted amounts (carrying amounts):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,435 399 10 1,423 604Leasing debt 524 111 90 160 164Total 6,386 3,646 178 1,781 782In \u20ac million December 31, 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,844 676 187 873 1,108Leasing debt 505 97 70 159 179Total 7,320 4,413 292 1,278 1,336The following tables present undiscounted amounts (nominal value):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,444 399 9 1,428 608Leasing debt 524 111 90 160 164Total 6,395 3,646 178 1,786 785Interests on financial debt and lease liabilities 321 78 73 122 48Total out\ufb02ows of cash 6,717 3,724 251 1,908 833\u20ac million 31 December 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,856 677 188 877 1,115Leasing debt 505 97 70 159 179Total 7,333 4,414 293 1,282 1,343Interests on financial debt and lease liabilities 379 86 74 158 62Total out\ufb02ows of cash 7,712 4,500 367 1,439 1,405Trade payables include \u20ac172 million (2021: \u20ac198 million) due to suppliers that have signed up for a supply chain financing program, under which the suppliers can elect to receive a discounted early payment from the partner bank rather than being paid in line with the agreed payment terms. If the option is taken, the Group\u2019s liability is assigned by the supplier to the partner bank. The value of the Group's liability remains unchanged. The Group assesses each arrangement against indicators to determine if the liabilities which suppliers have sold to the partner bank under the supplier financing scheme continue to meet the definition of trade payables or should be classified as financial debt. On December 31, 2022 and 2021, the liabilities met the criteria of Trade Payables.Solvay\u2019s liquidity amounts to \u20ac6.7 billion including \u20ac932 million of cash and cash equivalents on the statement of financial position and \u20ac\ue61f5.8 billion of committed fully undrawn credit facilities (\u20ac2.9 billion term loan in the context of the separation plan, \u20ac2 billion multilateral RCF due 2024, and \u20ac0.9 billion bilateral RCF, largely multi-year) unused at the end of December 2022.In addition, Solvay has access to a Belgian Treasury Bill program for \u20ac1.5 billion and, alternatively, to a US commercial paper for US$ 500 million (no outstanding balance for both on December 31, 2022). The two programs are covered by back-up credit lines.\ue61f",
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"value": "NOTE\ue61fF32 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENTAccounting policyGeneralFinancial assets and liabilities are recognized when, and only when Solvay becomes a party to the contractual provisions of the instrument. Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates the expected cash \ufb02ows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts.The following table presents the financial assets and liabilities as current or non-current according to their classification under IFRS 9.December 31, 2022 December 31, 2021In \u20ac million Classification Carrying amount Carrying amountNon-current assets - Financial instruments \ue61f 464 553Equity instruments measured at fair value through Financial assets measured at fair value through 24 51other comprehensive incomeother comprehensive incomeEquity instruments measured at fair value through Financial assets measured at fair value through 47 62profit or lossprofit or lossLoans and other non-current assets (excluding pension fund surpluses and long-term inventory Financial assets measured at amortized cost 197 252balance)Financial instruments - Operational \ue61f 196 187Held for trading Held for trading 130 108Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 66 79cash \ufb02ow hedge relationshipCurrent assets - Financial instruments \ue61f 4,093 4,300Trade receivables Financial assets measured at amortized cost 2,026 1,805Other financial instruments \ue61f 206 229Other marketable securities >3 months Financial assets measured at amortized cost 43 70Currency swaps Held for trading 1 4Other current financial assets Financial assets measured at amortized cost 162 155Financial instruments - Operational \ue61f 929 1,326Held for trading Held for trading 553 1,101Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 376 225cash \ufb02ow hedge relationshipCash and cash equivalents Financial assets measured at amortized cost 932 941Total assets - Financial instruments \ue61f 4,557 4,853Non-current liabilities - Financial instruments \ue61f 2,753 2,907Financial debt \ue61f 2,450 2,576Bonds Financial liabilities measured at amortized cost 1,994 2,112Other non-current debts Financial liabilities measured at amortized cost 42 55Lease liabilities IFRS 16 - Non-current portion Lease liabilities measured at amortized cost 413 408Other liabilities Financial liabilities measured at amortized cost 112 153Financial instruments - Operational \ue61f 192 178Held for trading Held for trading 146 107Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 46 71cash \ufb02ow hedge relationshipCurrent liabilities - Financial instruments \ue61f 3,646 4,414Financial debt \ue61f 510 773Short-term financial debt Financial liabilities measured at amortized cost 397 673Currency swaps Held for trading 2 3Lease liabilities IFRS 16 - Current portion Lease liabilities measured at amortized cost 111 97Trade payables Financial liabilities measured at amortized cost 2,296 2,131Financial instruments - Operational \ue61f 676 1,350Held for trading Held for trading 492 1,118Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 183 232cash \ufb02ow hedge relationshipDividends payables Financial liabilities measured at amortized cost 165 160Total liabilities - Financial instruments \ue61f 6,399 7,320In 2021 and 2022, long-term CO inventory balances reported are not financial assets and hence are not included in the table above. They are presented 2as other non-current assets. F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.Income and expenses on financial instruments recognized in other comprehensive income include the following:In \u20ac million Cash \ufb02ow hedgesForeign currency Interest rate risk Commodity risk Risk on Solvay Totalriskshare price2022 2021 2022 2021 2022 2021 2022 2021 2022 2021January 1 -7 16 7 2 2 1 17Recycling from other comprehensive income of derivative financial 31 -9 \ue61f \ue61f -257 -78 \ue61f \ue61f -226 -87instruments designated in a cash \ufb02ow hedge relationshipEffective portion of changes in fair value -10 -14 \ue61f \ue61f 317 85 -1 306 71of cash \ufb02ow hedgeDecember 31 13 -7 67 7 1 2 81 1Conventionally, (+) indicates an increase and (-) a reduction in equity.Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). Cash \ufb02ow hedgeThe Group uses derivatives to hedge identified foreign exchange rate risks. It documents those as hedging instruments unless it hedges a recognized financial asset or liability when generally no cash \ufb02ow hedge relationship is documented. Most hedges are transaction related.At the end of 2022, the Group had mainly hedged highly probable sales in foreign currencies (short position) in a nominal amount of US$ 839 million (\u20ac786 million) and JP\u00a5 15,902 million (\u20ac113 million). All cash \ufb02ow hedge contracts that exist at the end of December 2022 will be settled within the next 12 months, and will impact profit or loss during that period.The following table details the notional amounts of Solvay\u2019s derivatives contracts outstanding at the end of the period:NOTIONAL AMOUNTSDecember 31, 2022\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of of exposure exchange rate hedge hedging instrumentthe the risk expo-hedgedper risk categoryreserve (1) (1)instrumentsure\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets LiabilitiesCash \ufb02ow hedges - Forecasted sales and (3)purchasesJPY/EUR -71 -147 48% 139.17 0 1 1JPY/USD -42 -87 48% (2) 132.47 -1 1 2Total JPY -113 -234 -1 1 2USD/BRL -187 -285 66% (2) 5.28 3 3 0USD/CNY -157 -353 45% (2) 6.82 -1 1 2USD/EUR -340 -674 50% 1.05 8 10 2USD/MXN -66 -135 49% (2) 21.01 3 3 0USD/THB -36 -79 45% 34.69 1 1 0Total USD -786 -1,525 14 19 5Total -899 -1,759 13 20 7(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2023.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates.In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.December 31, 2021\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of the of exposure exchange rate hedge hedging instrument (1)the instru-risk exposurehedgedper risk categoryreserve (1)ment\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets Liabilities (3)Cash \ufb02ow hedges - Forecasted sales and purchases\ue61fJPY/EUR -45 -110 41% \ue61f 130.80 1(2)JPY/USD -31 -64 48%111.66 1 1Total JPY -76 -174 \ue61f \ue61f \ue61f 1 1(2)USD/BRL -146 -194 75%5.26(2)USD/CNY -122 -225 54%6.58 3 3USD/EUR -314 -634 50% \ue61f 1.18 12 12(2)USD/MXN -40 -89 45%21.73 2 2USD/THB -20 -44 45% \ue61f 32.51 1 1Total USD -642 -1,187 \ue61f \ue61f \ue61f 17 4 13Total -718 -1,361 \ue61f \ue61f \ue61f 18 5 13(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2022.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Interest rate risksSee the Financial risk in the Management of risks section of this annual report for additional information on the interest rate risks management.Interest rate risk is managed at Group level.The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and \ufb02oating interest rates. Interest rate risk is managed at Group level by maintaining an appropriate mix between fixed and \ufb02oating rate borrowings.Interest rate exposure by currency is summarized below:In \u20ac million December 31, 2022 December 31, 2021Currency Fixed rate Floating rate Total Fixed rate Floating rate TotalFinancial debt \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR -1,642 -32 -1,673 -1,923 -18 -1,941USD -1,153 -11 -1,163 -1,246 -23 -1,269BGN 0 -33 -33 0 -4 -5SAR 0 0 0 \ue61f -18 -18INR -11 -6 -17 -39 0 -39KRW -19 -7 -26 -21 -1 -22THB -12 0 -12 -11 0 -11BRL -12 0 -12 -9 -2 -11Other -22 -1 -23 -28 -4 -32Total -2,870 -90 -2,959 -3,277 -71 -3,349Cash and cash equivalents \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR \ue61f 201 201 \ue61f 206 206USD \ue61f 320 320 \ue61f 458 458CAD \ue61f 53 53 \ue61f 5 5THB \ue61f 28 28 \ue61f 36 36SAR \ue61f 11 11 \ue61f 15 15BRL \ue61f 177 177 \ue61f 53 53CNY \ue61f 22 22 \ue61f 35 35KRW \ue61f 7 7 \ue61f 7 7JPY \ue61f 30 30 \ue61f 33 33Other \ue61f 83 83 \ue61f 93 93Total \ue61f 932 932 \ue61f 941 941Other financial instruments \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fCNY \ue61f 43 43 \ue61f 70 70EUR \ue61f 185 185 \ue61f 160 160SAR \ue61f 4 4 \ue61f 21 21Other \ue61f 4 4 \ue61f 8 8Total \ue61f 236 236 \ue61f 259 259\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fTotal -2,870 1,078 -1,791 -3,277 1,128 -2,149At the end of 2022, approximately \u20ac2.87 billion of the Group\u2019s gross debt was at fixed-rate, and is largely comprised of: \u00b7 Senior EUR Bonds for a total of \u20ac1,100 million maturing in 2027 and 2029 (carrying amount of \u20ac1,094 million); \u00b7 Remaining portion (US$ 163 million) of the US$ Senior Bonds 2025 of US$ 250 million (carrying amount of \u20ac152 million); \u00b7 Senior US$ Bond for a total of US$ 800 million (carrying amount of \u20ac748 million); \u00b7 IFRS 16 lease liability for a total of \u20ac524 million (carrying amount of \u20ac524 million).The \ufb02oating rate debts that are subject to interest rate swaps are discussed below. The impact of interest rate volatility at the end of 2022 compared to 2021 is the following:Sensitivity to a + 100bp movement in Sensitivity to a - 100bp movement EUR market interest ratesin EUR market interest ratesIn \u20ac million 2022 2021 2022 2021Profit or loss -1 0 1 0The sensitivity to interest rates\u2019 volatility remains insignificant at the end of 2022 compared to 2021 as the \ufb02oating rate debt is very limited.Interest rate risk hedged by instrument accounted for as held for tradingIn \u20ac million Notional amount Fair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021Held for trading 0 18Total 0 18The notional amount reported in 2021 under \u201cheld for trading\u201d is mainly explained by a cross currency swap contracted in May 2017 and settled in the course of 2022 to mitigate the volatility (forex and interest rate) of the external financing set up for the Group\u2019s HPPO joint operation (Saudi Hydrogen Peroxide Company) 50/50 with Sadara in Saudi Arabia (notional amount \u20ac18 million corresponding to 50%). Interest rate risk hedged by instrument accounted for as a hedging instrument in a cash \ufb02ow hedgeIn 2022, there are no outstanding interest rate instruments accounted for under cash \ufb02ow hedges.\ue61fOther market risks\u2014 Utility and CO2 price risksThe Group purchases a large portion of its coal, gas and electricity needs in Europe and the United States based on \ufb02uctuating liquid market indices. Moreover, the Group purchases raw materials with a price formula referring to market indices (e.g. benzene). In order to reduce the cost volatility, the Group has developed a policy for exchanging variable price against fixed price through derivative financial instruments. Most of these hedging instruments can be documented as hedging instruments of the underlying purchase contracts. Utility purchase contracts at fixed price with a physical delivery for use in the Group's operations are qualified as own use contracts and constitute a natural hedge. Those have not been included in this note. Similarly, the Group's exposure to CO price is partially hedged by forward purchases of European Union Allowances (EUA). In 2021, forward purchases 2with physical delivery for use in the Group's operations were qualified as own use contracts (not derivatives). In 2022, in view of both increased volatility in energy and CO markets and the plan to separate Solvay SA into two independent groups, the Group reconsidered the conditions of the own use 2exemption. Accordingly the entire portfolio of CO emission rights forward purchases has been accounted for at the end of Q2 2022 in accordance with 2the general rules of IFRS\ue61f9, and a profit of \u20ac322 million has been classified as \u201cOther operating gains and losses\u201d. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.Finally, some exposure to gas, coal and electricity prices may arise from the production of electricity on Solvay sites (mostly from cogeneration units in Europe), which can be hedged by means of forward purchases and forward sales or optional schemes. In this case, cash \ufb02ow hedge accounting is applied.Financial hedging of utility and CO emission rights price risks is managed centrally by Energy Services on behalf of the Group entities.2Energy Services also carries out trading transactions with respect to utility and CO.2The following tables detail the notional principal amounts and fair values of utility and CO derivative financial instruments outstanding at the end of the 2reporting period:Held for trading Notional amount of Notional amount of the instrument Fair value of the Fair value of the (1)the instrument(in units)instrument - Assetinstrument - LiabilityDecember 31 2022 2021 2022 2021 2022 2021 2022 2021In \u20ac million (except where indicated)Coal \ue61f Tons \ue61fPower 922 1,189 7,318,874 21,005,859 MWh 307 764 -306 -781Standard Quality Gas 619 613 13,372,959 27,701,363 MWh 347 434 -282 -437CO10 11 707,550 206,294 Tons 21 4 -46 -52Total 1,550 1,813 \ue61f \ue61f 675 1,202 -634 -1,223(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.The amounts presented in the tables hereafter include hedging needs of the GBUs of the Group that are sourced through Energy Services, and not the full Group utility hedging needs.December 31, 2022\ue61fCash \ufb02ow Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair value Fair hedgeamount amount of tional amount tage of hedge \ufb02ow of the in-value of the the instru-amount of the risk expo-price hedge strument of the instru-ment (in of the exposure (in sure per risk re-- Assetinstru- (1) mentunits)risk ex-units)hedgedcatego-servement posurery- Lia-bilityIn \u20ac million (except where indicated)\ue61fBenzeneCoalEUR/Power 154 1,078,973 MWh 702 3,505,469 MWh 31% 13271 40 -111MWhStandard Quality EUR/330 13,525,810 MWh 1,650 34,722,420 MWh 39% 33-156 240 -84GasMWhCO2368 5,440,050 Tons 1,150 24,096,508 Tons 45% 61 EUR/Tons 152 142 -26Total 899 67 422 -221(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.December 31, 2021Cash \ufb02ow hedge Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair Fair amount amount of tional amount tage hedge \ufb02ow value value of the the instru-amount of the risk of ex-price hedge of the of the instru-ment (in of the exposure (in posure per risk re-instru-instru- (1) mentunits)risk ex-units)hedgedcatego-servement - ment - posureryAssetLiabilityIn \u20ac million (except where indicated)\ue61fBenzene 1 1,477 Tons 1 1,479 Tons 100% 556 EUR/tonCoal 17 243,000 Tons 62 702,041 Tons 35% 77 USD/ton 5 6 -1Power 154 2,506,335 MWh 607 3,591,600 MWh 70% 62 EUR/MWh -270 1 -271Standard Quality 254 13,648,389 MWh 954 24,096,508 MWh 57% 19 EUR/MWh 273 291 -18GasTotal 426 \ue61f \ue61f 1,625 \ue61f \ue61f \ue61f \ue61f \ue61f 8 298 -290(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates. \u00b7 In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.In the wake of the European energy crisis impacting gas consumption in several countries and due to the European Union's sanctions on the sourcing of gas and coal from Russia, the Group revised the expected activity of several of its cogeneration units in Europe in Q3 2022 with a view to both preserving business continuity and reducing gas consumption. These developments triggered the need to reassess the probability and conditions of future energy consumption at each site when updating the Cash Flow Hedge (CFH) documentation. As part of this reassessment, the Group identified certain hedges for which the underlying future energy purchases are no longer highly probable (but still expected to occur) or subject to modified purchasing conditions, resulting in those hedges ceasing to meet the qualifying criteria for CFH accounting during Q3 2022. The discontinuation of hedge accounting resulted in a favorable \u20ac39 million accumulated mark-to-market that will remain in Other Comprehensive Income with future recycling to the consolidated income statement as the underlying transactions occur (\u20ac18 million in 2022, \u20ac18 million in 2023).Fair value hedgeOn December 31, 2022, the Group covers a part of its CO emission rights in inventory by forward sales of CO emission rights to a related party. The 22Group qualifies this hedging strategy as Fair value hedge. The change in fair value of forward sales are accounted in profit and loss, concomitantly with the revaluation of the CO emission rights held in inventory.2The Group has established a 1:1 hedge ratio for the underlying risk of the forward sales of CO emission rights to the related party that is identical to the 2hedged risk component.\ue61fThe impact of the hedging instrument on the statement of financial position as at December 31, 2022 is, as follows:December 31, 2022Balance sheet Change in fair value used for Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets Liabilities\ue61f In Tons In \u20ac million In \u20ac million \ue61f In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f\ue61f\ue61f \ue61fHedgeCO emission Financial 286,500 1\ue61f-6\ue61f-6rights forwardsinstrumentDecember 31, 2022Balance sheet Change in fair value used for \ue61f Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets LiabilitiesIn Tons In \u20ac million In \u20ac million In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fHedgeCO emission 286,500 -1 7 \ue61f Inventories 6 \ue61frights forwardsThe sensitivities of commodity derivative financial instruments as of December 31, 2022 are presented below.The sensitivities were defined based on the price levels and volatility levels of each commodity. These assumptions do not constitute an estimation of future market prices and the sensitivities presented are not representative of future changes in Solvay's equity and results. \ue61fDecember 31, 2022Price change Other comprehensive income Profit or lossIn \u20ac millionNatural gas +10\u20ac/MWh -109 - Natural gas -10\u20ac/MWh 109 - Electricity +30\u20ac/MWh 32 1 Electricity -30\u20ac/MWh -32 -1CO Emission rights +5\u20ac/T 28 -2CO Emission rights -5\u20ac/T -28 -2Performance Share Units Plan (PSU) risk on Solvay share priceIn order to neutralize the volatility of the Solvay share price, which will impact the liability valuation relating to the cash settled PSU plans (with related employer charges), the Group entered into equity swaps covering approximately 100% of the risk. In 2022, a liability of \u20ac39 million, recognized for 2020 and 2021 PSU plans (in 2021, \u20ac24 million for the 2020 and 2021 PSU plans) corresponds to the best estimate of the amount due at maturity.Credit riskSee the Financial risk in the Management of risks section of this annual report for additional information on credit risk management. The Group continuously monitors the credit risk of important business partners. The Group engages in transactions only with financial institutions with a good credit rating. The Group monitors and manages exposures to financial institutions within approved counterparty credit limits and credit risk parameters in order to mitigate the risk of default. For financial guarantees, see note F36 Contingent assets, liabilities and financial guarantees.The Group recognizes expected credit losses on all of its trade receivables: it applies the simplified approach and recognizes lifetime expected losses on all trade receivables, using a provision matrix in order to calculate the lifetime expected credit losses for trade receivables, using historical information on defaults adjusted for the forward-looking information. The Group classifies the customers and their related receivables in various rating classes, based on the risks\u2019 grading attributed to the customers and on the aging balance of receivables. As such, for all receivables overdue below six months, the Group considers percentages within a range between 0.005% and 4.204%, depending on the rating class. For all receivables overdue in excess of six months, the Group considers a rate of 50% or of 100%, depending on the rating class. The customer\u2019s grading is reviewed annually for customers assessed as low risk profile, and every six months for customers assessed as higher risk profile. There is no significant concentration of credit risk at Group level because the receivables\u2019 credit risk is spread over a large number of customers and markets.The ageing of trade receivables, financial instruments - operational, loans and other non-current assets is as follows:\ue61f \ue61f With expected loss allowance, not credit-impairedDecember 31, 2022In \u20ac millionTotal Credit-not past less than between 30 between 60 and more than 90 impaireddue30 days and 60 days 90 days past duedays past duepast duepast dueTrade receivables 2,098 68 1,986 33 6 1 3Trade receivables - allowance -72 -67 -2 0 \ue61f \ue61f -2Trade receivables - net 2,026 1 1,984 33 6 1 1Financial instruments - 1,125 \ue61f 1,125 \ue61f \ue61f \ue61f \ue61foperationalLoans and other non-current assets 312 12 300 0 \ue61f \ue61f \ue61fLoans and other non-current assets -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61f- allowanceLoans and other non-current 301 0 300 0 0 0 0assets - netTotal 3,452 1 3,410 33 6 1 1The Loans and other non-currents assets do not include the long-term inventory balance.December 31, 2021\ue61f With expected loss allowance, not credit-impairedIn \u20ac millionTotal Credit-im-not past less than between 30 between 60 more than paireddue30 days and 60 days and 90 days 90 days past duepast duepast duepast dueTrade receivables 1,857 50 1,765 36 2 1 3Trade receivables - allowance -51 -49 -2 \ue61f \ue61f \ue61f -1Trade receivables - net 1,805 2 1,763 36 2 1 2Financial instruments - operational 1,513 \ue61f 1,513 \ue61f \ue61f \ue61f \ue61fLoans and other non-current assets 511 11 500 0 \ue61f \ue61f \ue61fLoans and other non-current assets - -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61fallowanceLoans and other non-current assets 500 0 500 0 0 0 0- netTotal 3,818 2 3,776 36 2 1 2The table below presents the allowances on trade receivables:In \u20ac million2022 2021January 1 -51 -39Additions -22 -19Uses 2 5Reversal 1 2Currency translation differences -2 0December 31 -72 -51Liquidity riskSee the Financial risk in the Management of risks section of this annual report for additional information on the liquidity risk management.Liquidity risk relates to Solvay\u2019s ability to service and refinance its debt (including notes issued) and to fund its operations.This depends on its ability to generate cash from operations and not to overpay for acquisitions.The Finance Committee gives its opinion on the appropriate liquidity risk management for the Group\u2019s short, medium and long term funding and liquidity management requirements.The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash \ufb02ows, and by matching the maturity profiles of financial assets and liabilities.The Group staggers the maturities of its financing sources over time in order to limit amounts to be refinanced each year.The following tables detail the Group\u2019s remaining contractual maturity for its financial liabilities with contractual repayment periods.\ue61fThe tables have been prepared using the discounted cash \ufb02ows of financial liabilities, based on the earliest date on which the Group can be required to pay. The following tables present discounted amounts (carrying amounts):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,435 399 10 1,423 604Leasing debt 524 111 90 160 164Total 6,386 3,646 178 1,781 782In \u20ac million December 31, 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,844 676 187 873 1,108Leasing debt 505 97 70 159 179Total 7,320 4,413 292 1,278 1,336The following tables present undiscounted amounts (nominal value):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,444 399 9 1,428 608Leasing debt 524 111 90 160 164Total 6,395 3,646 178 1,786 785Interests on financial debt and lease liabilities 321 78 73 122 48Total out\ufb02ows of cash 6,717 3,724 251 1,908 833\u20ac million 31 December 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,856 677 188 877 1,115Leasing debt 505 97 70 159 179Total 7,333 4,414 293 1,282 1,343Interests on financial debt and lease liabilities 379 86 74 158 62Total out\ufb02ows of cash 7,712 4,500 367 1,439 1,405Trade payables include \u20ac172 million (2021: \u20ac198 million) due to suppliers that have signed up for a supply chain financing program, under which the suppliers can elect to receive a discounted early payment from the partner bank rather than being paid in line with the agreed payment terms. If the option is taken, the Group\u2019s liability is assigned by the supplier to the partner bank. The value of the Group's liability remains unchanged. The Group assesses each arrangement against indicators to determine if the liabilities which suppliers have sold to the partner bank under the supplier financing scheme continue to meet the definition of trade payables or should be classified as financial debt. On December 31, 2022 and 2021, the liabilities met the criteria of Trade Payables.Solvay\u2019s liquidity amounts to \u20ac6.7 billion including \u20ac932 million of cash and cash equivalents on the statement of financial position and \u20ac\ue61f5.8 billion of committed fully undrawn credit facilities (\u20ac2.9 billion term loan in the context of the separation plan, \u20ac2 billion multilateral RCF due 2024, and \u20ac0.9 billion bilateral RCF, largely multi-year) unused at the end of December 2022.In addition, Solvay has access to a Belgian Treasury Bill program for \u20ac1.5 billion and, alternatively, to a US commercial paper for US$ 500 million (no outstanding balance for both on December 31, 2022). The two programs are covered by back-up credit lines.\ue61f",
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"value": "NOTE\ue61fF32 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENTAccounting policyGeneralFinancial assets and liabilities are recognized when, and only when Solvay becomes a party to the contractual provisions of the instrument. Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates the expected cash \ufb02ows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts.The following table presents the financial assets and liabilities as current or non-current according to their classification under IFRS 9.December 31, 2022 December 31, 2021In \u20ac million Classification Carrying amount Carrying amountNon-current assets - Financial instruments \ue61f 464 553Equity instruments measured at fair value through Financial assets measured at fair value through 24 51other comprehensive incomeother comprehensive incomeEquity instruments measured at fair value through Financial assets measured at fair value through 47 62profit or lossprofit or lossLoans and other non-current assets (excluding pension fund surpluses and long-term inventory Financial assets measured at amortized cost 197 252balance)Financial instruments - Operational \ue61f 196 187Held for trading Held for trading 130 108Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 66 79cash \ufb02ow hedge relationshipCurrent assets - Financial instruments \ue61f 4,093 4,300Trade receivables Financial assets measured at amortized cost 2,026 1,805Other financial instruments \ue61f 206 229Other marketable securities >3 months Financial assets measured at amortized cost 43 70Currency swaps Held for trading 1 4Other current financial assets Financial assets measured at amortized cost 162 155Financial instruments - Operational \ue61f 929 1,326Held for trading Held for trading 553 1,101Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 376 225cash \ufb02ow hedge relationshipCash and cash equivalents Financial assets measured at amortized cost 932 941Total assets - Financial instruments \ue61f 4,557 4,853Non-current liabilities - Financial instruments \ue61f 2,753 2,907Financial debt \ue61f 2,450 2,576Bonds Financial liabilities measured at amortized cost 1,994 2,112Other non-current debts Financial liabilities measured at amortized cost 42 55Lease liabilities IFRS 16 - Non-current portion Lease liabilities measured at amortized cost 413 408Other liabilities Financial liabilities measured at amortized cost 112 153Financial instruments - Operational \ue61f 192 178Held for trading Held for trading 146 107Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 46 71cash \ufb02ow hedge relationshipCurrent liabilities - Financial instruments \ue61f 3,646 4,414Financial debt \ue61f 510 773Short-term financial debt Financial liabilities measured at amortized cost 397 673Currency swaps Held for trading 2 3Lease liabilities IFRS 16 - Current portion Lease liabilities measured at amortized cost 111 97Trade payables Financial liabilities measured at amortized cost 2,296 2,131Financial instruments - Operational \ue61f 676 1,350Held for trading Held for trading 492 1,118Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 183 232cash \ufb02ow hedge relationshipDividends payables Financial liabilities measured at amortized cost 165 160Total liabilities - Financial instruments \ue61f 6,399 7,320In 2021 and 2022, long-term CO inventory balances reported are not financial assets and hence are not included in the table above. They are presented 2as other non-current assets. F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.Income and expenses on financial instruments recognized in other comprehensive income include the following:In \u20ac million Cash \ufb02ow hedgesForeign currency Interest rate risk Commodity risk Risk on Solvay Totalriskshare price2022 2021 2022 2021 2022 2021 2022 2021 2022 2021January 1 -7 16 7 2 2 1 17Recycling from other comprehensive income of derivative financial 31 -9 \ue61f \ue61f -257 -78 \ue61f \ue61f -226 -87instruments designated in a cash \ufb02ow hedge relationshipEffective portion of changes in fair value -10 -14 \ue61f \ue61f 317 85 -1 306 71of cash \ufb02ow hedgeDecember 31 13 -7 67 7 1 2 81 1Conventionally, (+) indicates an increase and (-) a reduction in equity.Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). Cash \ufb02ow hedgeThe Group uses derivatives to hedge identified foreign exchange rate risks. It documents those as hedging instruments unless it hedges a recognized financial asset or liability when generally no cash \ufb02ow hedge relationship is documented. Most hedges are transaction related.At the end of 2022, the Group had mainly hedged highly probable sales in foreign currencies (short position) in a nominal amount of US$ 839 million (\u20ac786 million) and JP\u00a5 15,902 million (\u20ac113 million). All cash \ufb02ow hedge contracts that exist at the end of December 2022 will be settled within the next 12 months, and will impact profit or loss during that period.The following table details the notional amounts of Solvay\u2019s derivatives contracts outstanding at the end of the period:NOTIONAL AMOUNTSDecember 31, 2022\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of of exposure exchange rate hedge hedging instrumentthe the risk expo-hedgedper risk categoryreserve (1) (1)instrumentsure\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets LiabilitiesCash \ufb02ow hedges - Forecasted sales and (3)purchasesJPY/EUR -71 -147 48% 139.17 0 1 1JPY/USD -42 -87 48% (2) 132.47 -1 1 2Total JPY -113 -234 -1 1 2USD/BRL -187 -285 66% (2) 5.28 3 3 0USD/CNY -157 -353 45% (2) 6.82 -1 1 2USD/EUR -340 -674 50% 1.05 8 10 2USD/MXN -66 -135 49% (2) 21.01 3 3 0USD/THB -36 -79 45% 34.69 1 1 0Total USD -786 -1,525 14 19 5Total -899 -1,759 13 20 7(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2023.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates.In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.December 31, 2021\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of the of exposure exchange rate hedge hedging instrument (1)the instru-risk exposurehedgedper risk categoryreserve (1)ment\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets Liabilities (3)Cash \ufb02ow hedges - Forecasted sales and purchases\ue61fJPY/EUR -45 -110 41% \ue61f 130.80 1(2)JPY/USD -31 -64 48%111.66 1 1Total JPY -76 -174 \ue61f \ue61f \ue61f 1 1(2)USD/BRL -146 -194 75%5.26(2)USD/CNY -122 -225 54%6.58 3 3USD/EUR -314 -634 50% \ue61f 1.18 12 12(2)USD/MXN -40 -89 45%21.73 2 2USD/THB -20 -44 45% \ue61f 32.51 1 1Total USD -642 -1,187 \ue61f \ue61f \ue61f 17 4 13Total -718 -1,361 \ue61f \ue61f \ue61f 18 5 13(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2022.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Interest rate risksSee the Financial risk in the Management of risks section of this annual report for additional information on the interest rate risks management.Interest rate risk is managed at Group level.The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and \ufb02oating interest rates. Interest rate risk is managed at Group level by maintaining an appropriate mix between fixed and \ufb02oating rate borrowings.Interest rate exposure by currency is summarized below:In \u20ac million December 31, 2022 December 31, 2021Currency Fixed rate Floating rate Total Fixed rate Floating rate TotalFinancial debt \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR -1,642 -32 -1,673 -1,923 -18 -1,941USD -1,153 -11 -1,163 -1,246 -23 -1,269BGN 0 -33 -33 0 -4 -5SAR 0 0 0 \ue61f -18 -18INR -11 -6 -17 -39 0 -39KRW -19 -7 -26 -21 -1 -22THB -12 0 -12 -11 0 -11BRL -12 0 -12 -9 -2 -11Other -22 -1 -23 -28 -4 -32Total -2,870 -90 -2,959 -3,277 -71 -3,349Cash and cash equivalents \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR \ue61f 201 201 \ue61f 206 206USD \ue61f 320 320 \ue61f 458 458CAD \ue61f 53 53 \ue61f 5 5THB \ue61f 28 28 \ue61f 36 36SAR \ue61f 11 11 \ue61f 15 15BRL \ue61f 177 177 \ue61f 53 53CNY \ue61f 22 22 \ue61f 35 35KRW \ue61f 7 7 \ue61f 7 7JPY \ue61f 30 30 \ue61f 33 33Other \ue61f 83 83 \ue61f 93 93Total \ue61f 932 932 \ue61f 941 941Other financial instruments \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fCNY \ue61f 43 43 \ue61f 70 70EUR \ue61f 185 185 \ue61f 160 160SAR \ue61f 4 4 \ue61f 21 21Other \ue61f 4 4 \ue61f 8 8Total \ue61f 236 236 \ue61f 259 259\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fTotal -2,870 1,078 -1,791 -3,277 1,128 -2,149At the end of 2022, approximately \u20ac2.87 billion of the Group\u2019s gross debt was at fixed-rate, and is largely comprised of: \u00b7 Senior EUR Bonds for a total of \u20ac1,100 million maturing in 2027 and 2029 (carrying amount of \u20ac1,094 million); \u00b7 Remaining portion (US$ 163 million) of the US$ Senior Bonds 2025 of US$ 250 million (carrying amount of \u20ac152 million); \u00b7 Senior US$ Bond for a total of US$ 800 million (carrying amount of \u20ac748 million); \u00b7 IFRS 16 lease liability for a total of \u20ac524 million (carrying amount of \u20ac524 million).The \ufb02oating rate debts that are subject to interest rate swaps are discussed below. The impact of interest rate volatility at the end of 2022 compared to 2021 is the following:Sensitivity to a + 100bp movement in Sensitivity to a - 100bp movement EUR market interest ratesin EUR market interest ratesIn \u20ac million 2022 2021 2022 2021Profit or loss -1 0 1 0The sensitivity to interest rates\u2019 volatility remains insignificant at the end of 2022 compared to 2021 as the \ufb02oating rate debt is very limited.Interest rate risk hedged by instrument accounted for as held for tradingIn \u20ac million Notional amount Fair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021Held for trading 0 18Total 0 18The notional amount reported in 2021 under \u201cheld for trading\u201d is mainly explained by a cross currency swap contracted in May 2017 and settled in the course of 2022 to mitigate the volatility (forex and interest rate) of the external financing set up for the Group\u2019s HPPO joint operation (Saudi Hydrogen Peroxide Company) 50/50 with Sadara in Saudi Arabia (notional amount \u20ac18 million corresponding to 50%). Interest rate risk hedged by instrument accounted for as a hedging instrument in a cash \ufb02ow hedgeIn 2022, there are no outstanding interest rate instruments accounted for under cash \ufb02ow hedges.\ue61fOther market risks\u2014 Utility and CO2 price risksThe Group purchases a large portion of its coal, gas and electricity needs in Europe and the United States based on \ufb02uctuating liquid market indices. Moreover, the Group purchases raw materials with a price formula referring to market indices (e.g. benzene). In order to reduce the cost volatility, the Group has developed a policy for exchanging variable price against fixed price through derivative financial instruments. Most of these hedging instruments can be documented as hedging instruments of the underlying purchase contracts. Utility purchase contracts at fixed price with a physical delivery for use in the Group's operations are qualified as own use contracts and constitute a natural hedge. Those have not been included in this note. Similarly, the Group's exposure to CO price is partially hedged by forward purchases of European Union Allowances (EUA). In 2021, forward purchases 2with physical delivery for use in the Group's operations were qualified as own use contracts (not derivatives). In 2022, in view of both increased volatility in energy and CO markets and the plan to separate Solvay SA into two independent groups, the Group reconsidered the conditions of the own use 2exemption. Accordingly the entire portfolio of CO emission rights forward purchases has been accounted for at the end of Q2 2022 in accordance with 2the general rules of IFRS\ue61f9, and a profit of \u20ac322 million has been classified as \u201cOther operating gains and losses\u201d. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.Finally, some exposure to gas, coal and electricity prices may arise from the production of electricity on Solvay sites (mostly from cogeneration units in Europe), which can be hedged by means of forward purchases and forward sales or optional schemes. In this case, cash \ufb02ow hedge accounting is applied.Financial hedging of utility and CO emission rights price risks is managed centrally by Energy Services on behalf of the Group entities.2Energy Services also carries out trading transactions with respect to utility and CO.2The following tables detail the notional principal amounts and fair values of utility and CO derivative financial instruments outstanding at the end of the 2reporting period:Held for trading Notional amount of Notional amount of the instrument Fair value of the Fair value of the (1)the instrument(in units)instrument - Assetinstrument - LiabilityDecember 31 2022 2021 2022 2021 2022 2021 2022 2021In \u20ac million (except where indicated)Coal \ue61f Tons \ue61fPower 922 1,189 7,318,874 21,005,859 MWh 307 764 -306 -781Standard Quality Gas 619 613 13,372,959 27,701,363 MWh 347 434 -282 -437CO10 11 707,550 206,294 Tons 21 4 -46 -52Total 1,550 1,813 \ue61f \ue61f 675 1,202 -634 -1,223(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.The amounts presented in the tables hereafter include hedging needs of the GBUs of the Group that are sourced through Energy Services, and not the full Group utility hedging needs.December 31, 2022\ue61fCash \ufb02ow Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair value Fair hedgeamount amount of tional amount tage of hedge \ufb02ow of the in-value of the the instru-amount of the risk expo-price hedge strument of the instru-ment (in of the exposure (in sure per risk re-- Assetinstru- (1) mentunits)risk ex-units)hedgedcatego-servement posurery- Lia-bilityIn \u20ac million (except where indicated)\ue61fBenzeneCoalEUR/Power 154 1,078,973 MWh 702 3,505,469 MWh 31% 13271 40 -111MWhStandard Quality EUR/330 13,525,810 MWh 1,650 34,722,420 MWh 39% 33-156 240 -84GasMWhCO2368 5,440,050 Tons 1,150 24,096,508 Tons 45% 61 EUR/Tons 152 142 -26Total 899 67 422 -221(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.December 31, 2021Cash \ufb02ow hedge Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair Fair amount amount of tional amount tage hedge \ufb02ow value value of the the instru-amount of the risk of ex-price hedge of the of the instru-ment (in of the exposure (in posure per risk re-instru-instru- (1) mentunits)risk ex-units)hedgedcatego-servement - ment - posureryAssetLiabilityIn \u20ac million (except where indicated)\ue61fBenzene 1 1,477 Tons 1 1,479 Tons 100% 556 EUR/tonCoal 17 243,000 Tons 62 702,041 Tons 35% 77 USD/ton 5 6 -1Power 154 2,506,335 MWh 607 3,591,600 MWh 70% 62 EUR/MWh -270 1 -271Standard Quality 254 13,648,389 MWh 954 24,096,508 MWh 57% 19 EUR/MWh 273 291 -18GasTotal 426 \ue61f \ue61f 1,625 \ue61f \ue61f \ue61f \ue61f \ue61f 8 298 -290(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates. \u00b7 In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.In the wake of the European energy crisis impacting gas consumption in several countries and due to the European Union's sanctions on the sourcing of gas and coal from Russia, the Group revised the expected activity of several of its cogeneration units in Europe in Q3 2022 with a view to both preserving business continuity and reducing gas consumption. These developments triggered the need to reassess the probability and conditions of future energy consumption at each site when updating the Cash Flow Hedge (CFH) documentation. As part of this reassessment, the Group identified certain hedges for which the underlying future energy purchases are no longer highly probable (but still expected to occur) or subject to modified purchasing conditions, resulting in those hedges ceasing to meet the qualifying criteria for CFH accounting during Q3 2022. The discontinuation of hedge accounting resulted in a favorable \u20ac39 million accumulated mark-to-market that will remain in Other Comprehensive Income with future recycling to the consolidated income statement as the underlying transactions occur (\u20ac18 million in 2022, \u20ac18 million in 2023).Fair value hedgeOn December 31, 2022, the Group covers a part of its CO emission rights in inventory by forward sales of CO emission rights to a related party. The 22Group qualifies this hedging strategy as Fair value hedge. The change in fair value of forward sales are accounted in profit and loss, concomitantly with the revaluation of the CO emission rights held in inventory.2The Group has established a 1:1 hedge ratio for the underlying risk of the forward sales of CO emission rights to the related party that is identical to the 2hedged risk component.\ue61fThe impact of the hedging instrument on the statement of financial position as at December 31, 2022 is, as follows:December 31, 2022Balance sheet Change in fair value used for Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets Liabilities\ue61f In Tons In \u20ac million In \u20ac million \ue61f In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f\ue61f\ue61f \ue61fHedgeCO emission Financial 286,500 1\ue61f-6\ue61f-6rights forwardsinstrumentDecember 31, 2022Balance sheet Change in fair value used for \ue61f Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets LiabilitiesIn Tons In \u20ac million In \u20ac million In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fHedgeCO emission 286,500 -1 7 \ue61f Inventories 6 \ue61frights forwardsThe sensitivities of commodity derivative financial instruments as of December 31, 2022 are presented below.The sensitivities were defined based on the price levels and volatility levels of each commodity. These assumptions do not constitute an estimation of future market prices and the sensitivities presented are not representative of future changes in Solvay's equity and results. \ue61fDecember 31, 2022Price change Other comprehensive income Profit or lossIn \u20ac millionNatural gas +10\u20ac/MWh -109 - Natural gas -10\u20ac/MWh 109 - Electricity +30\u20ac/MWh 32 1 Electricity -30\u20ac/MWh -32 -1CO Emission rights +5\u20ac/T 28 -2CO Emission rights -5\u20ac/T -28 -2Performance Share Units Plan (PSU) risk on Solvay share priceIn order to neutralize the volatility of the Solvay share price, which will impact the liability valuation relating to the cash settled PSU plans (with related employer charges), the Group entered into equity swaps covering approximately 100% of the risk. In 2022, a liability of \u20ac39 million, recognized for 2020 and 2021 PSU plans (in 2021, \u20ac24 million for the 2020 and 2021 PSU plans) corresponds to the best estimate of the amount due at maturity.Credit riskSee the Financial risk in the Management of risks section of this annual report for additional information on credit risk management. The Group continuously monitors the credit risk of important business partners. The Group engages in transactions only with financial institutions with a good credit rating. The Group monitors and manages exposures to financial institutions within approved counterparty credit limits and credit risk parameters in order to mitigate the risk of default. For financial guarantees, see note F36 Contingent assets, liabilities and financial guarantees.The Group recognizes expected credit losses on all of its trade receivables: it applies the simplified approach and recognizes lifetime expected losses on all trade receivables, using a provision matrix in order to calculate the lifetime expected credit losses for trade receivables, using historical information on defaults adjusted for the forward-looking information. The Group classifies the customers and their related receivables in various rating classes, based on the risks\u2019 grading attributed to the customers and on the aging balance of receivables. As such, for all receivables overdue below six months, the Group considers percentages within a range between 0.005% and 4.204%, depending on the rating class. For all receivables overdue in excess of six months, the Group considers a rate of 50% or of 100%, depending on the rating class. The customer\u2019s grading is reviewed annually for customers assessed as low risk profile, and every six months for customers assessed as higher risk profile. There is no significant concentration of credit risk at Group level because the receivables\u2019 credit risk is spread over a large number of customers and markets.The ageing of trade receivables, financial instruments - operational, loans and other non-current assets is as follows:\ue61f \ue61f With expected loss allowance, not credit-impairedDecember 31, 2022In \u20ac millionTotal Credit-not past less than between 30 between 60 and more than 90 impaireddue30 days and 60 days 90 days past duedays past duepast duepast dueTrade receivables 2,098 68 1,986 33 6 1 3Trade receivables - allowance -72 -67 -2 0 \ue61f \ue61f -2Trade receivables - net 2,026 1 1,984 33 6 1 1Financial instruments - 1,125 \ue61f 1,125 \ue61f \ue61f \ue61f \ue61foperationalLoans and other non-current assets 312 12 300 0 \ue61f \ue61f \ue61fLoans and other non-current assets -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61f- allowanceLoans and other non-current 301 0 300 0 0 0 0assets - netTotal 3,452 1 3,410 33 6 1 1The Loans and other non-currents assets do not include the long-term inventory balance.December 31, 2021\ue61f With expected loss allowance, not credit-impairedIn \u20ac millionTotal Credit-im-not past less than between 30 between 60 more than paireddue30 days and 60 days and 90 days 90 days past duepast duepast duepast dueTrade receivables 1,857 50 1,765 36 2 1 3Trade receivables - allowance -51 -49 -2 \ue61f \ue61f \ue61f -1Trade receivables - net 1,805 2 1,763 36 2 1 2Financial instruments - operational 1,513 \ue61f 1,513 \ue61f \ue61f \ue61f \ue61fLoans and other non-current assets 511 11 500 0 \ue61f \ue61f \ue61fLoans and other non-current assets - -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61fallowanceLoans and other non-current assets 500 0 500 0 0 0 0- netTotal 3,818 2 3,776 36 2 1 2The table below presents the allowances on trade receivables:In \u20ac million2022 2021January 1 -51 -39Additions -22 -19Uses 2 5Reversal 1 2Currency translation differences -2 0December 31 -72 -51Liquidity riskSee the Financial risk in the Management of risks section of this annual report for additional information on the liquidity risk management.Liquidity risk relates to Solvay\u2019s ability to service and refinance its debt (including notes issued) and to fund its operations.This depends on its ability to generate cash from operations and not to overpay for acquisitions.The Finance Committee gives its opinion on the appropriate liquidity risk management for the Group\u2019s short, medium and long term funding and liquidity management requirements.The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash \ufb02ows, and by matching the maturity profiles of financial assets and liabilities.The Group staggers the maturities of its financing sources over time in order to limit amounts to be refinanced each year.The following tables detail the Group\u2019s remaining contractual maturity for its financial liabilities with contractual repayment periods.\ue61fThe tables have been prepared using the discounted cash \ufb02ows of financial liabilities, based on the earliest date on which the Group can be required to pay. The following tables present discounted amounts (carrying amounts):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,435 399 10 1,423 604Leasing debt 524 111 90 160 164Total 6,386 3,646 178 1,781 782In \u20ac million December 31, 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,844 676 187 873 1,108Leasing debt 505 97 70 159 179Total 7,320 4,413 292 1,278 1,336The following tables present undiscounted amounts (nominal value):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,444 399 9 1,428 608Leasing debt 524 111 90 160 164Total 6,395 3,646 178 1,786 785Interests on financial debt and lease liabilities 321 78 73 122 48Total out\ufb02ows of cash 6,717 3,724 251 1,908 833\u20ac million 31 December 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,856 677 188 877 1,115Leasing debt 505 97 70 159 179Total 7,333 4,414 293 1,282 1,343Interests on financial debt and lease liabilities 379 86 74 158 62Total out\ufb02ows of cash 7,712 4,500 367 1,439 1,405Trade payables include \u20ac172 million (2021: \u20ac198 million) due to suppliers that have signed up for a supply chain financing program, under which the suppliers can elect to receive a discounted early payment from the partner bank rather than being paid in line with the agreed payment terms. If the option is taken, the Group\u2019s liability is assigned by the supplier to the partner bank. The value of the Group's liability remains unchanged. The Group assesses each arrangement against indicators to determine if the liabilities which suppliers have sold to the partner bank under the supplier financing scheme continue to meet the definition of trade payables or should be classified as financial debt. On December 31, 2022 and 2021, the liabilities met the criteria of Trade Payables.Solvay\u2019s liquidity amounts to \u20ac6.7 billion including \u20ac932 million of cash and cash equivalents on the statement of financial position and \u20ac\ue61f5.8 billion of committed fully undrawn credit facilities (\u20ac2.9 billion term loan in the context of the separation plan, \u20ac2 billion multilateral RCF due 2024, and \u20ac0.9 billion bilateral RCF, largely multi-year) unused at the end of December 2022.In addition, Solvay has access to a Belgian Treasury Bill program for \u20ac1.5 billion and, alternatively, to a US commercial paper for US$ 500 million (no outstanding balance for both on December 31, 2022). The two programs are covered by back-up credit lines.\ue61f",
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"value": "NOTE\ue61fF32 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENTAccounting policyGeneralFinancial assets and liabilities are recognized when, and only when Solvay becomes a party to the contractual provisions of the instrument. Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates the expected cash \ufb02ows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts.The following table presents the financial assets and liabilities as current or non-current according to their classification under IFRS 9.December 31, 2022 December 31, 2021In \u20ac million Classification Carrying amount Carrying amountNon-current assets - Financial instruments \ue61f 464 553Equity instruments measured at fair value through Financial assets measured at fair value through 24 51other comprehensive incomeother comprehensive incomeEquity instruments measured at fair value through Financial assets measured at fair value through 47 62profit or lossprofit or lossLoans and other non-current assets (excluding pension fund surpluses and long-term inventory Financial assets measured at amortized cost 197 252balance)Financial instruments - Operational \ue61f 196 187Held for trading Held for trading 130 108Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 66 79cash \ufb02ow hedge relationshipCurrent assets - Financial instruments \ue61f 4,093 4,300Trade receivables Financial assets measured at amortized cost 2,026 1,805Other financial instruments \ue61f 206 229Other marketable securities >3 months Financial assets measured at amortized cost 43 70Currency swaps Held for trading 1 4Other current financial assets Financial assets measured at amortized cost 162 155Financial instruments - Operational \ue61f 929 1,326Held for trading Held for trading 553 1,101Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 376 225cash \ufb02ow hedge relationshipCash and cash equivalents Financial assets measured at amortized cost 932 941Total assets - Financial instruments \ue61f 4,557 4,853Non-current liabilities - Financial instruments \ue61f 2,753 2,907Financial debt \ue61f 2,450 2,576Bonds Financial liabilities measured at amortized cost 1,994 2,112Other non-current debts Financial liabilities measured at amortized cost 42 55Lease liabilities IFRS 16 - Non-current portion Lease liabilities measured at amortized cost 413 408Other liabilities Financial liabilities measured at amortized cost 112 153Financial instruments - Operational \ue61f 192 178Held for trading Held for trading 146 107Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 46 71cash \ufb02ow hedge relationshipCurrent liabilities - Financial instruments \ue61f 3,646 4,414Financial debt \ue61f 510 773Short-term financial debt Financial liabilities measured at amortized cost 397 673Currency swaps Held for trading 2 3Lease liabilities IFRS 16 - Current portion Lease liabilities measured at amortized cost 111 97Trade payables Financial liabilities measured at amortized cost 2,296 2,131Financial instruments - Operational \ue61f 676 1,350Held for trading Held for trading 492 1,118Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 183 232cash \ufb02ow hedge relationshipDividends payables Financial liabilities measured at amortized cost 165 160Total liabilities - Financial instruments \ue61f 6,399 7,320In 2021 and 2022, long-term CO inventory balances reported are not financial assets and hence are not included in the table above. They are presented 2as other non-current assets. F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.Income and expenses on financial instruments recognized in other comprehensive income include the following:In \u20ac million Cash \ufb02ow hedgesForeign currency Interest rate risk Commodity risk Risk on Solvay Totalriskshare price2022 2021 2022 2021 2022 2021 2022 2021 2022 2021January 1 -7 16 7 2 2 1 17Recycling from other comprehensive income of derivative financial 31 -9 \ue61f \ue61f -257 -78 \ue61f \ue61f -226 -87instruments designated in a cash \ufb02ow hedge relationshipEffective portion of changes in fair value -10 -14 \ue61f \ue61f 317 85 -1 306 71of cash \ufb02ow hedgeDecember 31 13 -7 67 7 1 2 81 1Conventionally, (+) indicates an increase and (-) a reduction in equity.Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). Cash \ufb02ow hedgeThe Group uses derivatives to hedge identified foreign exchange rate risks. It documents those as hedging instruments unless it hedges a recognized financial asset or liability when generally no cash \ufb02ow hedge relationship is documented. Most hedges are transaction related.At the end of 2022, the Group had mainly hedged highly probable sales in foreign currencies (short position) in a nominal amount of US$ 839 million (\u20ac786 million) and JP\u00a5 15,902 million (\u20ac113 million). All cash \ufb02ow hedge contracts that exist at the end of December 2022 will be settled within the next 12 months, and will impact profit or loss during that period.The following table details the notional amounts of Solvay\u2019s derivatives contracts outstanding at the end of the period:NOTIONAL AMOUNTSDecember 31, 2022\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of of exposure exchange rate hedge hedging instrumentthe the risk expo-hedgedper risk categoryreserve (1) (1)instrumentsure\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets LiabilitiesCash \ufb02ow hedges - Forecasted sales and (3)purchasesJPY/EUR -71 -147 48% 139.17 0 1 1JPY/USD -42 -87 48% (2) 132.47 -1 1 2Total JPY -113 -234 -1 1 2USD/BRL -187 -285 66% (2) 5.28 3 3 0USD/CNY -157 -353 45% (2) 6.82 -1 1 2USD/EUR -340 -674 50% 1.05 8 10 2USD/MXN -66 -135 49% (2) 21.01 3 3 0USD/THB -36 -79 45% 34.69 1 1 0Total USD -786 -1,525 14 19 5Total -899 -1,759 13 20 7(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2023.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates.In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.December 31, 2021\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of the of exposure exchange rate hedge hedging instrument (1)the instru-risk exposurehedgedper risk categoryreserve (1)ment\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets Liabilities (3)Cash \ufb02ow hedges - Forecasted sales and purchases\ue61fJPY/EUR -45 -110 41% \ue61f 130.80 1(2)JPY/USD -31 -64 48%111.66 1 1Total JPY -76 -174 \ue61f \ue61f \ue61f 1 1(2)USD/BRL -146 -194 75%5.26(2)USD/CNY -122 -225 54%6.58 3 3USD/EUR -314 -634 50% \ue61f 1.18 12 12(2)USD/MXN -40 -89 45%21.73 2 2USD/THB -20 -44 45% \ue61f 32.51 1 1Total USD -642 -1,187 \ue61f \ue61f \ue61f 17 4 13Total -718 -1,361 \ue61f \ue61f \ue61f 18 5 13(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2022.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Interest rate risksSee the Financial risk in the Management of risks section of this annual report for additional information on the interest rate risks management.Interest rate risk is managed at Group level.The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and \ufb02oating interest rates. Interest rate risk is managed at Group level by maintaining an appropriate mix between fixed and \ufb02oating rate borrowings.Interest rate exposure by currency is summarized below:In \u20ac million December 31, 2022 December 31, 2021Currency Fixed rate Floating rate Total Fixed rate Floating rate TotalFinancial debt \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR -1,642 -32 -1,673 -1,923 -18 -1,941USD -1,153 -11 -1,163 -1,246 -23 -1,269BGN 0 -33 -33 0 -4 -5SAR 0 0 0 \ue61f -18 -18INR -11 -6 -17 -39 0 -39KRW -19 -7 -26 -21 -1 -22THB -12 0 -12 -11 0 -11BRL -12 0 -12 -9 -2 -11Other -22 -1 -23 -28 -4 -32Total -2,870 -90 -2,959 -3,277 -71 -3,349Cash and cash equivalents \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR \ue61f 201 201 \ue61f 206 206USD \ue61f 320 320 \ue61f 458 458CAD \ue61f 53 53 \ue61f 5 5THB \ue61f 28 28 \ue61f 36 36SAR \ue61f 11 11 \ue61f 15 15BRL \ue61f 177 177 \ue61f 53 53CNY \ue61f 22 22 \ue61f 35 35KRW \ue61f 7 7 \ue61f 7 7JPY \ue61f 30 30 \ue61f 33 33Other \ue61f 83 83 \ue61f 93 93Total \ue61f 932 932 \ue61f 941 941Other financial instruments \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fCNY \ue61f 43 43 \ue61f 70 70EUR \ue61f 185 185 \ue61f 160 160SAR \ue61f 4 4 \ue61f 21 21Other \ue61f 4 4 \ue61f 8 8Total \ue61f 236 236 \ue61f 259 259\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fTotal -2,870 1,078 -1,791 -3,277 1,128 -2,149At the end of 2022, approximately \u20ac2.87 billion of the Group\u2019s gross debt was at fixed-rate, and is largely comprised of: \u00b7 Senior EUR Bonds for a total of \u20ac1,100 million maturing in 2027 and 2029 (carrying amount of \u20ac1,094 million); \u00b7 Remaining portion (US$ 163 million) of the US$ Senior Bonds 2025 of US$ 250 million (carrying amount of \u20ac152 million); \u00b7 Senior US$ Bond for a total of US$ 800 million (carrying amount of \u20ac748 million); \u00b7 IFRS 16 lease liability for a total of \u20ac524 million (carrying amount of \u20ac524 million).The \ufb02oating rate debts that are subject to interest rate swaps are discussed below. The impact of interest rate volatility at the end of 2022 compared to 2021 is the following:Sensitivity to a + 100bp movement in Sensitivity to a - 100bp movement EUR market interest ratesin EUR market interest ratesIn \u20ac million 2022 2021 2022 2021Profit or loss -1 0 1 0The sensitivity to interest rates\u2019 volatility remains insignificant at the end of 2022 compared to 2021 as the \ufb02oating rate debt is very limited.Interest rate risk hedged by instrument accounted for as held for tradingIn \u20ac million Notional amount Fair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021Held for trading 0 18Total 0 18The notional amount reported in 2021 under \u201cheld for trading\u201d is mainly explained by a cross currency swap contracted in May 2017 and settled in the course of 2022 to mitigate the volatility (forex and interest rate) of the external financing set up for the Group\u2019s HPPO joint operation (Saudi Hydrogen Peroxide Company) 50/50 with Sadara in Saudi Arabia (notional amount \u20ac18 million corresponding to 50%). Interest rate risk hedged by instrument accounted for as a hedging instrument in a cash \ufb02ow hedgeIn 2022, there are no outstanding interest rate instruments accounted for under cash \ufb02ow hedges.\ue61fOther market risks\u2014 Utility and CO2 price risksThe Group purchases a large portion of its coal, gas and electricity needs in Europe and the United States based on \ufb02uctuating liquid market indices. Moreover, the Group purchases raw materials with a price formula referring to market indices (e.g. benzene). In order to reduce the cost volatility, the Group has developed a policy for exchanging variable price against fixed price through derivative financial instruments. Most of these hedging instruments can be documented as hedging instruments of the underlying purchase contracts. Utility purchase contracts at fixed price with a physical delivery for use in the Group's operations are qualified as own use contracts and constitute a natural hedge. Those have not been included in this note. Similarly, the Group's exposure to CO price is partially hedged by forward purchases of European Union Allowances (EUA). In 2021, forward purchases 2with physical delivery for use in the Group's operations were qualified as own use contracts (not derivatives). In 2022, in view of both increased volatility in energy and CO markets and the plan to separate Solvay SA into two independent groups, the Group reconsidered the conditions of the own use 2exemption. Accordingly the entire portfolio of CO emission rights forward purchases has been accounted for at the end of Q2 2022 in accordance with 2the general rules of IFRS\ue61f9, and a profit of \u20ac322 million has been classified as \u201cOther operating gains and losses\u201d. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.Finally, some exposure to gas, coal and electricity prices may arise from the production of electricity on Solvay sites (mostly from cogeneration units in Europe), which can be hedged by means of forward purchases and forward sales or optional schemes. In this case, cash \ufb02ow hedge accounting is applied.Financial hedging of utility and CO emission rights price risks is managed centrally by Energy Services on behalf of the Group entities.2Energy Services also carries out trading transactions with respect to utility and CO.2The following tables detail the notional principal amounts and fair values of utility and CO derivative financial instruments outstanding at the end of the 2reporting period:Held for trading Notional amount of Notional amount of the instrument Fair value of the Fair value of the (1)the instrument(in units)instrument - Assetinstrument - LiabilityDecember 31 2022 2021 2022 2021 2022 2021 2022 2021In \u20ac million (except where indicated)Coal \ue61f Tons \ue61fPower 922 1,189 7,318,874 21,005,859 MWh 307 764 -306 -781Standard Quality Gas 619 613 13,372,959 27,701,363 MWh 347 434 -282 -437CO10 11 707,550 206,294 Tons 21 4 -46 -52Total 1,550 1,813 \ue61f \ue61f 675 1,202 -634 -1,223(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.The amounts presented in the tables hereafter include hedging needs of the GBUs of the Group that are sourced through Energy Services, and not the full Group utility hedging needs.December 31, 2022\ue61fCash \ufb02ow Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair value Fair hedgeamount amount of tional amount tage of hedge \ufb02ow of the in-value of the the instru-amount of the risk expo-price hedge strument of the instru-ment (in of the exposure (in sure per risk re-- Assetinstru- (1) mentunits)risk ex-units)hedgedcatego-servement posurery- Lia-bilityIn \u20ac million (except where indicated)\ue61fBenzeneCoalEUR/Power 154 1,078,973 MWh 702 3,505,469 MWh 31% 13271 40 -111MWhStandard Quality EUR/330 13,525,810 MWh 1,650 34,722,420 MWh 39% 33-156 240 -84GasMWhCO2368 5,440,050 Tons 1,150 24,096,508 Tons 45% 61 EUR/Tons 152 142 -26Total 899 67 422 -221(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.December 31, 2021Cash \ufb02ow hedge Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair Fair amount amount of tional amount tage hedge \ufb02ow value value of the the instru-amount of the risk of ex-price hedge of the of the instru-ment (in of the exposure (in posure per risk re-instru-instru- (1) mentunits)risk ex-units)hedgedcatego-servement - ment - posureryAssetLiabilityIn \u20ac million (except where indicated)\ue61fBenzene 1 1,477 Tons 1 1,479 Tons 100% 556 EUR/tonCoal 17 243,000 Tons 62 702,041 Tons 35% 77 USD/ton 5 6 -1Power 154 2,506,335 MWh 607 3,591,600 MWh 70% 62 EUR/MWh -270 1 -271Standard Quality 254 13,648,389 MWh 954 24,096,508 MWh 57% 19 EUR/MWh 273 291 -18GasTotal 426 \ue61f \ue61f 1,625 \ue61f \ue61f \ue61f \ue61f \ue61f 8 298 -290(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates. \u00b7 In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.In the wake of the European energy crisis impacting gas consumption in several countries and due to the European Union's sanctions on the sourcing of gas and coal from Russia, the Group revised the expected activity of several of its cogeneration units in Europe in Q3 2022 with a view to both preserving business continuity and reducing gas consumption. These developments triggered the need to reassess the probability and conditions of future energy consumption at each site when updating the Cash Flow Hedge (CFH) documentation. As part of this reassessment, the Group identified certain hedges for which the underlying future energy purchases are no longer highly probable (but still expected to occur) or subject to modified purchasing conditions, resulting in those hedges ceasing to meet the qualifying criteria for CFH accounting during Q3 2022. The discontinuation of hedge accounting resulted in a favorable \u20ac39 million accumulated mark-to-market that will remain in Other Comprehensive Income with future recycling to the consolidated income statement as the underlying transactions occur (\u20ac18 million in 2022, \u20ac18 million in 2023).Fair value hedgeOn December 31, 2022, the Group covers a part of its CO emission rights in inventory by forward sales of CO emission rights to a related party. The 22Group qualifies this hedging strategy as Fair value hedge. The change in fair value of forward sales are accounted in profit and loss, concomitantly with the revaluation of the CO emission rights held in inventory.2The Group has established a 1:1 hedge ratio for the underlying risk of the forward sales of CO emission rights to the related party that is identical to the 2hedged risk component.\ue61fThe impact of the hedging instrument on the statement of financial position as at December 31, 2022 is, as follows:December 31, 2022Balance sheet Change in fair value used for Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets Liabilities\ue61f In Tons In \u20ac million In \u20ac million \ue61f In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f\ue61f\ue61f \ue61fHedgeCO emission Financial 286,500 1\ue61f-6\ue61f-6rights forwardsinstrumentDecember 31, 2022Balance sheet Change in fair value used for \ue61f Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets LiabilitiesIn Tons In \u20ac million In \u20ac million In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fHedgeCO emission 286,500 -1 7 \ue61f Inventories 6 \ue61frights forwardsThe sensitivities of commodity derivative financial instruments as of December 31, 2022 are presented below.The sensitivities were defined based on the price levels and volatility levels of each commodity. These assumptions do not constitute an estimation of future market prices and the sensitivities presented are not representative of future changes in Solvay's equity and results. \ue61fDecember 31, 2022Price change Other comprehensive income Profit or lossIn \u20ac millionNatural gas +10\u20ac/MWh -109 - Natural gas -10\u20ac/MWh 109 - Electricity +30\u20ac/MWh 32 1 Electricity -30\u20ac/MWh -32 -1CO Emission rights +5\u20ac/T 28 -2CO Emission rights -5\u20ac/T -28 -2Performance Share Units Plan (PSU) risk on Solvay share priceIn order to neutralize the volatility of the Solvay share price, which will impact the liability valuation relating to the cash settled PSU plans (with related employer charges), the Group entered into equity swaps covering approximately 100% of the risk. In 2022, a liability of \u20ac39 million, recognized for 2020 and 2021 PSU plans (in 2021, \u20ac24 million for the 2020 and 2021 PSU plans) corresponds to the best estimate of the amount due at maturity.Credit riskSee the Financial risk in the Management of risks section of this annual report for additional information on credit risk management. The Group continuously monitors the credit risk of important business partners. The Group engages in transactions only with financial institutions with a good credit rating. The Group monitors and manages exposures to financial institutions within approved counterparty credit limits and credit risk parameters in order to mitigate the risk of default. For financial guarantees, see note F36 Contingent assets, liabilities and financial guarantees.The Group recognizes expected credit losses on all of its trade receivables: it applies the simplified approach and recognizes lifetime expected losses on all trade receivables, using a provision matrix in order to calculate the lifetime expected credit losses for trade receivables, using historical information on defaults adjusted for the forward-looking information. The Group classifies the customers and their related receivables in various rating classes, based on the risks\u2019 grading attributed to the customers and on the aging balance of receivables. As such, for all receivables overdue below six months, the Group considers percentages within a range between 0.005% and 4.204%, depending on the rating class. For all receivables overdue in excess of six months, the Group considers a rate of 50% or of 100%, depending on the rating class. The customer\u2019s grading is reviewed annually for customers assessed as low risk profile, and every six months for customers assessed as higher risk profile. There is no significant concentration of credit risk at Group level because the receivables\u2019 credit risk is spread over a large number of customers and markets.The ageing of trade receivables, financial instruments - operational, loans and other non-current assets is as follows:\ue61f \ue61f With expected loss allowance, not credit-impairedDecember 31, 2022In \u20ac millionTotal Credit-not past less than between 30 between 60 and more than 90 impaireddue30 days and 60 days 90 days past duedays past duepast duepast dueTrade receivables 2,098 68 1,986 33 6 1 3Trade receivables - allowance -72 -67 -2 0 \ue61f \ue61f -2Trade receivables - net 2,026 1 1,984 33 6 1 1Financial instruments - 1,125 \ue61f 1,125 \ue61f \ue61f \ue61f \ue61foperationalLoans and other non-current assets 312 12 300 0 \ue61f \ue61f \ue61fLoans and other non-current assets -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61f- allowanceLoans and other non-current 301 0 300 0 0 0 0assets - netTotal 3,452 1 3,410 33 6 1 1The Loans and other non-currents assets do not include the long-term inventory balance.December 31, 2021\ue61f With expected loss allowance, not credit-impairedIn \u20ac millionTotal Credit-im-not past less than between 30 between 60 more than paireddue30 days and 60 days and 90 days 90 days past duepast duepast duepast dueTrade receivables 1,857 50 1,765 36 2 1 3Trade receivables - allowance -51 -49 -2 \ue61f \ue61f \ue61f -1Trade receivables - net 1,805 2 1,763 36 2 1 2Financial instruments - operational 1,513 \ue61f 1,513 \ue61f \ue61f \ue61f \ue61fLoans and other non-current assets 511 11 500 0 \ue61f \ue61f \ue61fLoans and other non-current assets - -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61fallowanceLoans and other non-current assets 500 0 500 0 0 0 0- netTotal 3,818 2 3,776 36 2 1 2The table below presents the allowances on trade receivables:In \u20ac million2022 2021January 1 -51 -39Additions -22 -19Uses 2 5Reversal 1 2Currency translation differences -2 0December 31 -72 -51Liquidity riskSee the Financial risk in the Management of risks section of this annual report for additional information on the liquidity risk management.Liquidity risk relates to Solvay\u2019s ability to service and refinance its debt (including notes issued) and to fund its operations.This depends on its ability to generate cash from operations and not to overpay for acquisitions.The Finance Committee gives its opinion on the appropriate liquidity risk management for the Group\u2019s short, medium and long term funding and liquidity management requirements.The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash \ufb02ows, and by matching the maturity profiles of financial assets and liabilities.The Group staggers the maturities of its financing sources over time in order to limit amounts to be refinanced each year.The following tables detail the Group\u2019s remaining contractual maturity for its financial liabilities with contractual repayment periods.\ue61fThe tables have been prepared using the discounted cash \ufb02ows of financial liabilities, based on the earliest date on which the Group can be required to pay. The following tables present discounted amounts (carrying amounts):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,435 399 10 1,423 604Leasing debt 524 111 90 160 164Total 6,386 3,646 178 1,781 782In \u20ac million December 31, 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,844 676 187 873 1,108Leasing debt 505 97 70 159 179Total 7,320 4,413 292 1,278 1,336The following tables present undiscounted amounts (nominal value):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,444 399 9 1,428 608Leasing debt 524 111 90 160 164Total 6,395 3,646 178 1,786 785Interests on financial debt and lease liabilities 321 78 73 122 48Total out\ufb02ows of cash 6,717 3,724 251 1,908 833\u20ac million 31 December 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,856 677 188 877 1,115Leasing debt 505 97 70 159 179Total 7,333 4,414 293 1,282 1,343Interests on financial debt and lease liabilities 379 86 74 158 62Total out\ufb02ows of cash 7,712 4,500 367 1,439 1,405Trade payables include \u20ac172 million (2021: \u20ac198 million) due to suppliers that have signed up for a supply chain financing program, under which the suppliers can elect to receive a discounted early payment from the partner bank rather than being paid in line with the agreed payment terms. If the option is taken, the Group\u2019s liability is assigned by the supplier to the partner bank. The value of the Group's liability remains unchanged. The Group assesses each arrangement against indicators to determine if the liabilities which suppliers have sold to the partner bank under the supplier financing scheme continue to meet the definition of trade payables or should be classified as financial debt. On December 31, 2022 and 2021, the liabilities met the criteria of Trade Payables.Solvay\u2019s liquidity amounts to \u20ac6.7 billion including \u20ac932 million of cash and cash equivalents on the statement of financial position and \u20ac\ue61f5.8 billion of committed fully undrawn credit facilities (\u20ac2.9 billion term loan in the context of the separation plan, \u20ac2 billion multilateral RCF due 2024, and \u20ac0.9 billion bilateral RCF, largely multi-year) unused at the end of December 2022.In addition, Solvay has access to a Belgian Treasury Bill program for \u20ac1.5 billion and, alternatively, to a US commercial paper for US$ 500 million (no outstanding balance for both on December 31, 2022). The two programs are covered by back-up credit lines.\ue61f",
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"value": "NOTE\ue61fF32 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENTAccounting policyGeneralFinancial assets and liabilities are recognized when, and only when Solvay becomes a party to the contractual provisions of the instrument. Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates the expected cash \ufb02ows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts.Financial assetsTrade receivables are initially measured at their transaction price, if they do not contain a significant financing component, which is the case for substantially all trade receivables. Other financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A financial asset is classified as current when the cash \ufb02ows expected to \ufb02ow from the instrument mature within one year.All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 Financial Instruments. Specifically: \u00b7 a debt instrument that (i) is held within a business model whose objective is to collect the contractual cash \ufb02ows and (ii) has contractual cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; \u00b7 a debt instrument that (i) is held within a business model whose objective is achieved both by collecting contractual cash \ufb02ows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option. Upon derecognition, the cumulative gains and losses previously recognized in other comprehensive income are reclassified to profit or loss; \u00b7 all other debt instruments are measured at FVTPL; \u00b7 all equity investments are measured in the consolidated statement of financial position at fair value, with gains and losses recognized in profit or loss except that if an equity investment is not held for trading, nor contingent consideration recognized by an acquirer in a business combination, an irrevocable election can be made at initial recognition to measure the investment at FVTOCI, with dividend income recognized in profit or loss. This classification is determined on an instrument-by-instrument basis. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to retained earnings. \u00b7 Equity investments in partnerships of investment funds are measured in the consolidated statement of financial position at fair value with gains and losses recognized in profit or loss. Based on the analysis of the characteristics of these funds the Group determined that they were not eligible for the FVTOCI option and therefore are accounted for at FVTPL. For instruments quoted in an active market, the fair value corresponds to a market price (level 1). For instruments that are not quoted in an active market, the fair value is determined using valuation techniques including reference to recent arm\u2019s length market transactions or transactions involving instruments which are substantially the same (level 2), or discounted cash \ufb02ow analysis including, to the greatest possible extent, assumptions consistent with observable market data (level 3). However, in limited circumstances, cost of equity instruments may be an appropriate estimate of their fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.Impairment of financial assetsThe impairment loss of a financial asset measured at amortized cost is calculated based on the expected loss model, representing the weighted average of credit losses with the respective risks of a default occurring as the weights. Expected credit losses are based on the difference between the contractual cash \ufb02ows due in accordance with the contract and all the cash \ufb02ows that the Group expects to receive, discounted at an approximation of the original effective interest rate.For trade receivables that do not contain a significant financing component (i.e. substantially all trade receivables), the loss allowance is measured at an amount equal to lifetime expected credit losses. Those are the expected credit losses that result from all possible default events over the expected life of those trade receivables, using a provision matrix that takes into account historical information on defaults adjusted for the forward-looking information per customer. The Group considers a financial asset in default when contractual payments are 60 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is fully impaired when there is no reasonable expectation of recovering the contractual cash \ufb02ows.Impairment losses are recognized in the consolidated income statement, except for debt instruments measured at fair value through other comprehensive income. In this case, the allowance is recognized in other comprehensive income.Financial liabilitiesFinancial liabilities are initially measured at fair value minus, in the case of a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial liability. Subsequently, they are measured at amortized cost, except for: \u00b7 financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value; \u00b7 financial guarantee contracts. After initial recognition, guarantees are subsequently measured at the higher of the expected losses and the amount initially recognized.Derivative financial instrumentsA derivative financial instrument is a financial instrument or other contract within the scope of IFRS 9 Financial Instruments with all three of the following characteristics: \u00b7 its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the \u2018underlying\u2019); \u00b7 it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; \u00b7 it is settled at a future date.The Group enters into a variety of derivative financial instruments (forward, future, option, collars and swap contracts) to manage its exposure to interest rate risk, foreign exchange rate risk, and commodity risk (mainly utility and CO emission rights price risks).2As explained above, derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in income or expense, unless the derivative is designated and effective as a hedging instrument. The Group designates certain derivatives as hedging instruments of the exposure to variability in cash \ufb02ows with respect to a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss (cash \ufb02ow hedges).A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivative instruments (or portions of them) are presented as non-current assets or non-current liabilities if the remaining maturity of the underlying settlements is more than twelve months after the reporting period. Other derivative instruments (or portions of them) are presented as current assets or current liabilities.Hedge accountingThe Group designates certain derivatives and embedded derivatives, in respect of interest rate risk, foreign exchange rate risk, Solvay share price risk, and commodity risk (mainly utility and CO emission rights price risks), as hedging instruments in a cash \ufb02ow hedge relationship.2At the inception of the hedge relationship, there is a formal designation and documentation of the hedging relationship and the Group\u2019s risk management objective and strategy for undertaking the hedge. So to apply hedge accounting: (a) there is an economic relationship between the hedged item and the hedging instrument, (b) the effect of credit risk does not dominate the value changes that result from that economic relationship, and (c) the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.The requirement under (a) above that an economic relationship exists means that there is an expectation that the value of the hedging instrument and the value of the hedged item will systematically change in the opposite direction in response to movements in either the same underlying (or underlyings that are economically related in such a way that they respond in a similar way to the risk that is being hedged).Cash \ufb02ow hedgesThe effective portion of changes in the fair value of hedging instruments that are designated in a cash \ufb02ow hedge is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.As long as cash \ufb02ow hedge qualifies, the hedging relationship is accounted for as follows:a) the separate component of equity associated with the hedged item (cash \ufb02ow hedge reserve) is adjusted to the lower of the following (in absolute amounts):(i) the cumulative gain or loss on the hedging instrument from inception of the hedge; and(ii) the cumulative change in fair value (present value) of the hedged item (i.e. The present value of the cumulative change in the hedged expected future cash \ufb02ows) from inception of the hedge.b) the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge (i.e. The portion that is offset by the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is recognized in other comprehensive income;c) any remaining gain or loss on the hedging instrument (or any gain or loss required to balance the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is hedge ineffectiveness that is recognized in profit or loss.d) the amount that has been accumulated in the cash \ufb02ow hedge reserve in accordance with (a) is accounted for as follows:(i) if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the Group removes that amount from the cash \ufb02ow hedge reserve and includes it directly in the initial cost or other carrying amount of the asset or the liability. This is not a reclassification adjustment and hence it does not affect other comprehensive income;(ii) for cash \ufb02ow hedges other than those covered by i), that amount is reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash \ufb02ows affect profit or loss (for example, in the periods that interest income or interest expense is recognized or when a forecast sale occurs);(iii) however, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.Most hedged items are transaction related. The time value of options, forward elements of forward contracts, and foreign currency basis spreads of financial instruments that are hedging the items affect profit or loss at the same time as those hedged items. Hedge accounting is discontinued prospectively when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. When the Group discontinues hedge accounting for a cash \ufb02ow hedge it accounts for the amount that has been accumulated in the cash \ufb02ow hedge reserve as follows: \u00b7 if the hedged future cash \ufb02ows are still expected to occur, that amount remains in the cash \ufb02ow hedge reserve until the future cash \ufb02ows occur. However, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment; \u00b7 if the hedged future cash \ufb02ows are no longer expected to occur, that amount is immediately reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment. A hedged future cash \ufb02ow that is no longer highly probable to occur may still be expected to occur.Fair value hedgesThe gain or loss on the hedging instrument shall be recognized in profit or loss (or other comprehensive income, if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income).The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts shall remain in other comprehensive income. When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in the fair value of the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding gain or loss recognized in profit or loss.The following table presents the financial assets and liabilities as current or non-current according to their classification under IFRS 9.December 31, 2022 December 31, 2021In \u20ac million Classification Carrying amount Carrying amountNon-current assets - Financial instruments \ue61f 464 553Equity instruments measured at fair value through Financial assets measured at fair value through 24 51other comprehensive incomeother comprehensive incomeEquity instruments measured at fair value through Financial assets measured at fair value through 47 62profit or lossprofit or lossLoans and other non-current assets (excluding pension fund surpluses and long-term inventory Financial assets measured at amortized cost 197 252balance)Financial instruments - Operational \ue61f 196 187Held for trading Held for trading 130 108Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 66 79cash \ufb02ow hedge relationshipCurrent assets - Financial instruments \ue61f 4,093 4,300Trade receivables Financial assets measured at amortized cost 2,026 1,805Other financial instruments \ue61f 206 229Other marketable securities >3 months Financial assets measured at amortized cost 43 70Currency swaps Held for trading 1 4Other current financial assets Financial assets measured at amortized cost 162 155Financial instruments - Operational \ue61f 929 1,326Held for trading Held for trading 553 1,101Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 376 225cash \ufb02ow hedge relationshipCash and cash equivalents Financial assets measured at amortized cost 932 941Total assets - Financial instruments \ue61f 4,557 4,853Non-current liabilities - Financial instruments \ue61f 2,753 2,907Financial debt \ue61f 2,450 2,576Bonds Financial liabilities measured at amortized cost 1,994 2,112Other non-current debts Financial liabilities measured at amortized cost 42 55Lease liabilities IFRS 16 - Non-current portion Lease liabilities measured at amortized cost 413 408Other liabilities Financial liabilities measured at amortized cost 112 153Financial instruments - Operational \ue61f 192 178Held for trading Held for trading 146 107Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 46 71cash \ufb02ow hedge relationshipCurrent liabilities - Financial instruments \ue61f 3,646 4,414Financial debt \ue61f 510 773Short-term financial debt Financial liabilities measured at amortized cost 397 673Currency swaps Held for trading 2 3Lease liabilities IFRS 16 - Current portion Lease liabilities measured at amortized cost 111 97Trade payables Financial liabilities measured at amortized cost 2,296 2,131Financial instruments - Operational \ue61f 676 1,350Held for trading Held for trading 492 1,118Derivative financial instruments designated in a Cash-\ufb02ow hedge\ue61f 183 232cash \ufb02ow hedge relationshipDividends payables Financial liabilities measured at amortized cost 165 160Total liabilities - Financial instruments \ue61f 6,399 7,320In 2021 and 2022, long-term CO inventory balances reported are not financial assets and hence are not included in the table above. They are presented 2as other non-current assets. F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.NOTE\ue61fF33NET INDEBTEDNESSThe Group\u2019s net indebtedness is the balance between its financial debts and other financial instruments, and cash and cash equivalents.December 31, 2022 December 31, 2021In \u20ac millionFinancial debt 2,959 3,349Cash and cash equivalents -932 -941Other financial instruments -236 -259Net indebtedness 1,791 2,149The decrease in the net indebtedness is mainly due to the strong free cash \ufb02ow generation.\ue61f\ue61fSolvay Investment Grade rating is Baa2/P2 (stable outlook) with Moody\u2019s and BBB/A2 (negative outlook) with Standard & Poor\u2019s (upon the Solvay announcement of March 15, 2022 indicating the plans to separate itself into two independent companies).Financial debt: main borrowings December 31, 2022 December 31, 2021In \u20ac million (except where indicated) Nominal Coupon Maturity Secured Amount Fair Amount at Fair amountat avalueamortized valuemortized costcostSenior \u20ac notes 1.625% 2022 No 377 382Senior US$ note Cytec Industries Inc. (issuance 3.5% 2023 No 172 177US$ 400 million)Senior US$ note Cytec Industries Inc. (issuance 153 3.95% 2025 No 152 147 143 153US$ 250 million)Senior US$ notes (144A;US$ 800 million) 750 4.45% 2025 No 748 721 704 769Senior \u20ac notes 500 2.75% 2027 No 497 482 497 564Senior \u20ac notes 600 0.500% 2029 No 597 479 596 593Total 1,994 1,829 2,489 2,638There are no instances of default on the above-mentioned financial debts. There are no financial covenants, neither on Solvay SA, nor on any of the Group\u2019s holding companies.In 2022, the senior EUR bond (\u20ac378 million) was fully repaid in September as well as the Cytec bond (US$ 196 million) in December.Other financial instrumentsIn \u20ac million December 31, 2022 December 31, 2021Non-current other financial instruments 30 30Current other financial instruments 206 229Currency swaps 1 4Other marketable securities > 3 months 43 70Other current financial assets 162 155Other financial instruments 236 259The other marketable securities > 3 months include the bank drafts position.The other current financial assets mainly include margin calls of Energy Services for instruments with a negative fair value, and represent collateral for the obligations. Cash and cash equivalentsIn \u20ac million December 31, 2022 December 31, 2021Cash 630 620Term deposits 303 320Cash and cash equivalents 932 941By their nature, the carrying amount of cash and cash equivalents is equal to, or a very good proxy of, its fair value. Changes in financial debt and in other financial instruments arising from financing activities2021 2022In \u20ac million Total Cash \ufb02ows Cash \ufb02ows Changes Changes Other in Transfer Payment Other Total from from in foreign in other financing from non-of lease increase of repayment exchange current cash current to liabilities borrowings of rates financial \ufb02ows current borrowings assets Bonds 2,112 3 65 -186 1,994Other non-current debts 55 24 -32 2 -9 3 42Long term leasing debt 409 10 -125 119 413Non-current financial 2,576 27 -32 77 -320 121 2,450debtCurrent financial debt 773 222 -764 3 128 320 -113 -59 510Total financial debt 3,350 248 -796 80 128 -113 63 2,960Other non-current -30 -30financial instrumentsCurrency swaps -4 3 -1Other marketable-70 1 26 -43 securities > 3 monthsOther current financial -155 -2 1 -5 -162assetsOther financial -229 -1 27 -2 -206instrumentsTotal cash \ufb02ow -310 248 -796 79 27 128 -113 61 -366The financial debt decreased from \u20ac3,350 million at the end of 2021 to \u20ac2,960 million at the end of 2022.The non-current financial debt decreased by \u20ac(127) million, mainly resulting from: \u00b7 the transfer to current financial debt for \u20ac(320) million (mainly explained by the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186)\ue61fmillion and IFRS 16 leases for \u20ac(125) million); \u00b7 the change in foreign exchange rates for \u20ac77 million (significant impact of \u20ac65 million on senior bonds in USD); \u00b7 \u20ac119 million in \u201cOther\u201d mainly relates to leases that commenced during the year, as well as lease modifications.The current financial debt decreased by \u20ac(263) million, mainly in short term financial debt: \u00b7 the repayment in September 2022 of \u20ac(378) million for the remaining portion of the \u20ac750 million bonds and the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186) million; \u00b7 the transfer from non-current financial debt to current for \u20ac320 million (mainly explained by the Cytec bond US$ 196 million early repayment in December\ue61f2022 for \u20ac186 million and IFRS 16 leases for \u20ac125 million); \u00b7 the increase and decrease of borrowings is mainly explained by the issuance of commercial paper in June 2022 for \u20ac80 million, fully repaid in September\ue61f2022; and by short-term financing needs in Bulgaria and India; \u00b7 the increase of \u20ac128 million of margin calls on hedging instruments as part of Energy Services\u2019 activities; \u00b7 the repayment of short term lease obligations under IFRS 16 of \u20ac(113) million. The other financial instruments decreased by \u20ac23 million, mainly for the collateral related to the margin calls on energy services (see note F33 Net indebtedness), following the increase in the energy and gas prices. ",
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"pp-value-187-4": {
"value": "Financial assetsTrade receivables are initially measured at their transaction price, if they do not contain a significant financing component, which is the case for substantially all trade receivables. Other financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A financial asset is classified as current when the cash \ufb02ows expected to \ufb02ow from the instrument mature within one year.All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 Financial Instruments. Specifically: \u00b7 a debt instrument that (i) is held within a business model whose objective is to collect the contractual cash \ufb02ows and (ii) has contractual cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; \u00b7 a debt instrument that (i) is held within a business model whose objective is achieved both by collecting contractual cash \ufb02ows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option. Upon derecognition, the cumulative gains and losses previously recognized in other comprehensive income are reclassified to profit or loss; \u00b7 all other debt instruments are measured at FVTPL; \u00b7 all equity investments are measured in the consolidated statement of financial position at fair value, with gains and losses recognized in profit or loss except that if an equity investment is not held for trading, nor contingent consideration recognized by an acquirer in a business combination, an irrevocable election can be made at initial recognition to measure the investment at FVTOCI, with dividend income recognized in profit or loss. This classification is determined on an instrument-by-instrument basis. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to retained earnings. \u00b7 Equity investments in partnerships of investment funds are measured in the consolidated statement of financial position at fair value with gains and losses recognized in profit or loss. Based on the analysis of the characteristics of these funds the Group determined that they were not eligible for the FVTOCI option and therefore are accounted for at FVTPL. For instruments quoted in an active market, the fair value corresponds to a market price (level 1). For instruments that are not quoted in an active market, the fair value is determined using valuation techniques including reference to recent arm\u2019s length market transactions or transactions involving instruments which are substantially the same (level 2), or discounted cash \ufb02ow analysis including, to the greatest possible extent, assumptions consistent with observable market data (level 3). However, in limited circumstances, cost of equity instruments may be an appropriate estimate of their fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.Impairment of financial assetsThe impairment loss of a financial asset measured at amortized cost is calculated based on the expected loss model, representing the weighted average of credit losses with the respective risks of a default occurring as the weights. Expected credit losses are based on the difference between the contractual cash \ufb02ows due in accordance with the contract and all the cash \ufb02ows that the Group expects to receive, discounted at an approximation of the original effective interest rate.For trade receivables that do not contain a significant financing component (i.e. substantially all trade receivables), the loss allowance is measured at an amount equal to lifetime expected credit losses. Those are the expected credit losses that result from all possible default events over the expected life of those trade receivables, using a provision matrix that takes into account historical information on defaults adjusted for the forward-looking information per customer. The Group considers a financial asset in default when contractual payments are 60 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is fully impaired when there is no reasonable expectation of recovering the contractual cash \ufb02ows.Impairment losses are recognized in the consolidated income statement, except for debt instruments measured at fair value through other comprehensive income. In this case, the allowance is recognized in other comprehensive income.Financial liabilitiesFinancial liabilities are initially measured at fair value minus, in the case of a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial liability. Subsequently, they are measured at amortized cost, except for: \u00b7 financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value; \u00b7 financial guarantee contracts. After initial recognition, guarantees are subsequently measured at the higher of the expected losses and the amount initially recognized.Derivative financial instrumentsA derivative financial instrument is a financial instrument or other contract within the scope of IFRS 9 Financial Instruments with all three of the following characteristics: \u00b7 its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the \u2018underlying\u2019); \u00b7 it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; \u00b7 it is settled at a future date.The Group enters into a variety of derivative financial instruments (forward, future, option, collars and swap contracts) to manage its exposure to interest rate risk, foreign exchange rate risk, and commodity risk (mainly utility and CO emission rights price risks).2As explained above, derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in income or expense, unless the derivative is designated and effective as a hedging instrument. The Group designates certain derivatives as hedging instruments of the exposure to variability in cash \ufb02ows with respect to a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss (cash \ufb02ow hedges).A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivative instruments (or portions of them) are presented as non-current assets or non-current liabilities if the remaining maturity of the underlying settlements is more than twelve months after the reporting period. Other derivative instruments (or portions of them) are presented as current assets or current liabilities.Hedge accountingThe Group designates certain derivatives and embedded derivatives, in respect of interest rate risk, foreign exchange rate risk, Solvay share price risk, and commodity risk (mainly utility and CO emission rights price risks), as hedging instruments in a cash \ufb02ow hedge relationship.2At the inception of the hedge relationship, there is a formal designation and documentation of the hedging relationship and the Group\u2019s risk management objective and strategy for undertaking the hedge. So to apply hedge accounting: (a) there is an economic relationship between the hedged item and the hedging instrument, (b) the effect of credit risk does not dominate the value changes that result from that economic relationship, and (c) the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.The requirement under (a) above that an economic relationship exists means that there is an expectation that the value of the hedging instrument and the value of the hedged item will systematically change in the opposite direction in response to movements in either the same underlying (or underlyings that are economically related in such a way that they respond in a similar way to the risk that is being hedged).Cash \ufb02ow hedgesThe effective portion of changes in the fair value of hedging instruments that are designated in a cash \ufb02ow hedge is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.As long as cash \ufb02ow hedge qualifies, the hedging relationship is accounted for as follows:a) the separate component of equity associated with the hedged item (cash \ufb02ow hedge reserve) is adjusted to the lower of the following (in absolute amounts):(i) the cumulative gain or loss on the hedging instrument from inception of the hedge; and(ii) the cumulative change in fair value (present value) of the hedged item (i.e. The present value of the cumulative change in the hedged expected future cash \ufb02ows) from inception of the hedge.b) the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge (i.e. The portion that is offset by the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is recognized in other comprehensive income;c) any remaining gain or loss on the hedging instrument (or any gain or loss required to balance the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is hedge ineffectiveness that is recognized in profit or loss.d) the amount that has been accumulated in the cash \ufb02ow hedge reserve in accordance with (a) is accounted for as follows:(i) if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the Group removes that amount from the cash \ufb02ow hedge reserve and includes it directly in the initial cost or other carrying amount of the asset or the liability. This is not a reclassification adjustment and hence it does not affect other comprehensive income;(ii) for cash \ufb02ow hedges other than those covered by i), that amount is reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash \ufb02ows affect profit or loss (for example, in the periods that interest income or interest expense is recognized or when a forecast sale occurs);(iii) however, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.Most hedged items are transaction related. The time value of options, forward elements of forward contracts, and foreign currency basis spreads of financial instruments that are hedging the items affect profit or loss at the same time as those hedged items. Hedge accounting is discontinued prospectively when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. When the Group discontinues hedge accounting for a cash \ufb02ow hedge it accounts for the amount that has been accumulated in the cash \ufb02ow hedge reserve as follows: \u00b7 if the hedged future cash \ufb02ows are still expected to occur, that amount remains in the cash \ufb02ow hedge reserve until the future cash \ufb02ows occur. However, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment; \u00b7 if the hedged future cash \ufb02ows are no longer expected to occur, that amount is immediately reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment. A hedged future cash \ufb02ow that is no longer highly probable to occur may still be expected to occur.Fair value hedgesThe gain or loss on the hedging instrument shall be recognized in profit or loss (or other comprehensive income, if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income).The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts shall remain in other comprehensive income. When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in the fair value of the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding gain or loss recognized in profit or loss.",
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"pp-value-187-5": {
"value": "Financial assetsTrade receivables are initially measured at their transaction price, if they do not contain a significant financing component, which is the case for substantially all trade receivables. Other financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A financial asset is classified as current when the cash \ufb02ows expected to \ufb02ow from the instrument mature within one year.All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 Financial Instruments. Specifically: \u00b7 a debt instrument that (i) is held within a business model whose objective is to collect the contractual cash \ufb02ows and (ii) has contractual cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; \u00b7 a debt instrument that (i) is held within a business model whose objective is achieved both by collecting contractual cash \ufb02ows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option. Upon derecognition, the cumulative gains and losses previously recognized in other comprehensive income are reclassified to profit or loss; \u00b7 all other debt instruments are measured at FVTPL; \u00b7 all equity investments are measured in the consolidated statement of financial position at fair value, with gains and losses recognized in profit or loss except that if an equity investment is not held for trading, nor contingent consideration recognized by an acquirer in a business combination, an irrevocable election can be made at initial recognition to measure the investment at FVTOCI, with dividend income recognized in profit or loss. This classification is determined on an instrument-by-instrument basis. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to retained earnings. \u00b7 Equity investments in partnerships of investment funds are measured in the consolidated statement of financial position at fair value with gains and losses recognized in profit or loss. Based on the analysis of the characteristics of these funds the Group determined that they were not eligible for the FVTOCI option and therefore are accounted for at FVTPL. For instruments quoted in an active market, the fair value corresponds to a market price (level 1). For instruments that are not quoted in an active market, the fair value is determined using valuation techniques including reference to recent arm\u2019s length market transactions or transactions involving instruments which are substantially the same (level 2), or discounted cash \ufb02ow analysis including, to the greatest possible extent, assumptions consistent with observable market data (level 3). However, in limited circumstances, cost of equity instruments may be an appropriate estimate of their fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.",
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"pp-value-187-6": {
"value": "Financial assetsTrade receivables are initially measured at their transaction price, if they do not contain a significant financing component, which is the case for substantially all trade receivables. Other financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A financial asset is classified as current when the cash \ufb02ows expected to \ufb02ow from the instrument mature within one year.All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 Financial Instruments. Specifically: \u00b7 a debt instrument that (i) is held within a business model whose objective is to collect the contractual cash \ufb02ows and (ii) has contractual cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; \u00b7 a debt instrument that (i) is held within a business model whose objective is achieved both by collecting contractual cash \ufb02ows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option. Upon derecognition, the cumulative gains and losses previously recognized in other comprehensive income are reclassified to profit or loss; \u00b7 all other debt instruments are measured at FVTPL; \u00b7 all equity investments are measured in the consolidated statement of financial position at fair value, with gains and losses recognized in profit or loss except that if an equity investment is not held for trading, nor contingent consideration recognized by an acquirer in a business combination, an irrevocable election can be made at initial recognition to measure the investment at FVTOCI, with dividend income recognized in profit or loss. This classification is determined on an instrument-by-instrument basis. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to retained earnings. \u00b7 Equity investments in partnerships of investment funds are measured in the consolidated statement of financial position at fair value with gains and losses recognized in profit or loss. Based on the analysis of the characteristics of these funds the Group determined that they were not eligible for the FVTOCI option and therefore are accounted for at FVTPL. For instruments quoted in an active market, the fair value corresponds to a market price (level 1). For instruments that are not quoted in an active market, the fair value is determined using valuation techniques including reference to recent arm\u2019s length market transactions or transactions involving instruments which are substantially the same (level 2), or discounted cash \ufb02ow analysis including, to the greatest possible extent, assumptions consistent with observable market data (level 3). However, in limited circumstances, cost of equity instruments may be an appropriate estimate of their fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.Impairment of financial assetsThe impairment loss of a financial asset measured at amortized cost is calculated based on the expected loss model, representing the weighted average of credit losses with the respective risks of a default occurring as the weights. Expected credit losses are based on the difference between the contractual cash \ufb02ows due in accordance with the contract and all the cash \ufb02ows that the Group expects to receive, discounted at an approximation of the original effective interest rate.For trade receivables that do not contain a significant financing component (i.e. substantially all trade receivables), the loss allowance is measured at an amount equal to lifetime expected credit losses. Those are the expected credit losses that result from all possible default events over the expected life of those trade receivables, using a provision matrix that takes into account historical information on defaults adjusted for the forward-looking information per customer. The Group considers a financial asset in default when contractual payments are 60 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is fully impaired when there is no reasonable expectation of recovering the contractual cash \ufb02ows.Impairment losses are recognized in the consolidated income statement, except for debt instruments measured at fair value through other comprehensive income. In this case, the allowance is recognized in other comprehensive income.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-187-7": {
"value": "Financial assetsTrade receivables are initially measured at their transaction price, if they do not contain a significant financing component, which is the case for substantially all trade receivables. Other financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A financial asset is classified as current when the cash \ufb02ows expected to \ufb02ow from the instrument mature within one year.All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 Financial Instruments. Specifically: \u00b7 a debt instrument that (i) is held within a business model whose objective is to collect the contractual cash \ufb02ows and (ii) has contractual cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; \u00b7 a debt instrument that (i) is held within a business model whose objective is achieved both by collecting contractual cash \ufb02ows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option. Upon derecognition, the cumulative gains and losses previously recognized in other comprehensive income are reclassified to profit or loss; \u00b7 all other debt instruments are measured at FVTPL; \u00b7 all equity investments are measured in the consolidated statement of financial position at fair value, with gains and losses recognized in profit or loss except that if an equity investment is not held for trading, nor contingent consideration recognized by an acquirer in a business combination, an irrevocable election can be made at initial recognition to measure the investment at FVTOCI, with dividend income recognized in profit or loss. This classification is determined on an instrument-by-instrument basis. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to retained earnings. \u00b7 Equity investments in partnerships of investment funds are measured in the consolidated statement of financial position at fair value with gains and losses recognized in profit or loss. Based on the analysis of the characteristics of these funds the Group determined that they were not eligible for the FVTOCI option and therefore are accounted for at FVTPL. For instruments quoted in an active market, the fair value corresponds to a market price (level 1). For instruments that are not quoted in an active market, the fair value is determined using valuation techniques including reference to recent arm\u2019s length market transactions or transactions involving instruments which are substantially the same (level 2), or discounted cash \ufb02ow analysis including, to the greatest possible extent, assumptions consistent with observable market data (level 3). However, in limited circumstances, cost of equity instruments may be an appropriate estimate of their fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.Financial liabilitiesFinancial liabilities are initially measured at fair value minus, in the case of a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial liability. Subsequently, they are measured at amortized cost, except for: \u00b7 financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value; \u00b7 financial guarantee contracts. After initial recognition, guarantees are subsequently measured at the higher of the expected losses and the amount initially recognized.Derivative financial instrumentsA derivative financial instrument is a financial instrument or other contract within the scope of IFRS 9 Financial Instruments with all three of the following characteristics: \u00b7 its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the \u2018underlying\u2019); \u00b7 it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; \u00b7 it is settled at a future date.The Group enters into a variety of derivative financial instruments (forward, future, option, collars and swap contracts) to manage its exposure to interest rate risk, foreign exchange rate risk, and commodity risk (mainly utility and CO emission rights price risks).2As explained above, derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in income or expense, unless the derivative is designated and effective as a hedging instrument. The Group designates certain derivatives as hedging instruments of the exposure to variability in cash \ufb02ows with respect to a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss (cash \ufb02ow hedges).A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivative instruments (or portions of them) are presented as non-current assets or non-current liabilities if the remaining maturity of the underlying settlements is more than twelve months after the reporting period. Other derivative instruments (or portions of them) are presented as current assets or current liabilities.F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-187-8": {
"value": "Financial assetsTrade receivables are initially measured at their transaction price, if they do not contain a significant financing component, which is the case for substantially all trade receivables. Other financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A financial asset is classified as current when the cash \ufb02ows expected to \ufb02ow from the instrument mature within one year.All recognized financial assets will subsequently be measured at either amortized cost or fair value under IFRS 9 Financial Instruments. Specifically: \u00b7 a debt instrument that (i) is held within a business model whose objective is to collect the contractual cash \ufb02ows and (ii) has contractual cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding is measured at amortized cost (net of any write down for impairment), unless the asset is designated at fair value through profit or loss (FVTPL) under the fair value option; \u00b7 a debt instrument that (i) is held within a business model whose objective is achieved both by collecting contractual cash \ufb02ows and selling financial assets and (ii) has contractual terms that give rise on specified dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding, is measured at fair value through other comprehensive income (FVTOCI), unless the asset is designated at FVTPL under the fair value option. Upon derecognition, the cumulative gains and losses previously recognized in other comprehensive income are reclassified to profit or loss; \u00b7 all other debt instruments are measured at FVTPL; \u00b7 all equity investments are measured in the consolidated statement of financial position at fair value, with gains and losses recognized in profit or loss except that if an equity investment is not held for trading, nor contingent consideration recognized by an acquirer in a business combination, an irrevocable election can be made at initial recognition to measure the investment at FVTOCI, with dividend income recognized in profit or loss. This classification is determined on an instrument-by-instrument basis. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to retained earnings. \u00b7 Equity investments in partnerships of investment funds are measured in the consolidated statement of financial position at fair value with gains and losses recognized in profit or loss. Based on the analysis of the characteristics of these funds the Group determined that they were not eligible for the FVTOCI option and therefore are accounted for at FVTPL. For instruments quoted in an active market, the fair value corresponds to a market price (level 1). For instruments that are not quoted in an active market, the fair value is determined using valuation techniques including reference to recent arm\u2019s length market transactions or transactions involving instruments which are substantially the same (level 2), or discounted cash \ufb02ow analysis including, to the greatest possible extent, assumptions consistent with observable market data (level 3). However, in limited circumstances, cost of equity instruments may be an appropriate estimate of their fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-189-7": {
"value": "Impairment of financial assetsThe impairment loss of a financial asset measured at amortized cost is calculated based on the expected loss model, representing the weighted average of credit losses with the respective risks of a default occurring as the weights. Expected credit losses are based on the difference between the contractual cash \ufb02ows due in accordance with the contract and all the cash \ufb02ows that the Group expects to receive, discounted at an approximation of the original effective interest rate.For trade receivables that do not contain a significant financing component (i.e. substantially all trade receivables), the loss allowance is measured at an amount equal to lifetime expected credit losses. Those are the expected credit losses that result from all possible default events over the expected life of those trade receivables, using a provision matrix that takes into account historical information on defaults adjusted for the forward-looking information per customer. The Group considers a financial asset in default when contractual payments are 60 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is fully impaired when there is no reasonable expectation of recovering the contractual cash \ufb02ows.Impairment losses are recognized in the consolidated income statement, except for debt instruments measured at fair value through other comprehensive income. In this case, the allowance is recognized in other comprehensive income.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-190-6": {
"value": "Financial liabilitiesFinancial liabilities are initially measured at fair value minus, in the case of a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial liability. Subsequently, they are measured at amortized cost, except for: \u00b7 financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value; \u00b7 financial guarantee contracts. After initial recognition, guarantees are subsequently measured at the higher of the expected losses and the amount initially recognized.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialGuaranteesExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-190-7": {
"value": "Financial liabilitiesFinancial liabilities are initially measured at fair value minus, in the case of a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the issue of the financial liability. Subsequently, they are measured at amortized cost, except for: \u00b7 financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value; \u00b7 financial guarantee contracts. After initial recognition, guarantees are subsequently measured at the higher of the expected losses and the amount initially recognized.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-192-7": {
"value": "Derivative financial instrumentsA derivative financial instrument is a financial instrument or other contract within the scope of IFRS 9 Financial Instruments with all three of the following characteristics: \u00b7 its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the \u2018underlying\u2019); \u00b7 it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; \u00b7 it is settled at a future date.The Group enters into a variety of derivative financial instruments (forward, future, option, collars and swap contracts) to manage its exposure to interest rate risk, foreign exchange rate risk, and commodity risk (mainly utility and CO emission rights price risks).2As explained above, derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in income or expense, unless the derivative is designated and effective as a hedging instrument. The Group designates certain derivatives as hedging instruments of the exposure to variability in cash \ufb02ows with respect to a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss (cash \ufb02ow hedges).A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivative instruments (or portions of them) are presented as non-current assets or non-current liabilities if the remaining maturity of the underlying settlements is more than twelve months after the reporting period. Other derivative instruments (or portions of them) are presented as current assets or current liabilities.Hedge accountingThe Group designates certain derivatives and embedded derivatives, in respect of interest rate risk, foreign exchange rate risk, Solvay share price risk, and commodity risk (mainly utility and CO emission rights price risks), as hedging instruments in a cash \ufb02ow hedge relationship.2At the inception of the hedge relationship, there is a formal designation and documentation of the hedging relationship and the Group\u2019s risk management objective and strategy for undertaking the hedge. So to apply hedge accounting: (a) there is an economic relationship between the hedged item and the hedging instrument, (b) the effect of credit risk does not dominate the value changes that result from that economic relationship, and (c) the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.The requirement under (a) above that an economic relationship exists means that there is an expectation that the value of the hedging instrument and the value of the hedged item will systematically change in the opposite direction in response to movements in either the same underlying (or underlyings that are economically related in such a way that they respond in a similar way to the risk that is being hedged).Cash \ufb02ow hedgesThe effective portion of changes in the fair value of hedging instruments that are designated in a cash \ufb02ow hedge is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.As long as cash \ufb02ow hedge qualifies, the hedging relationship is accounted for as follows:a) the separate component of equity associated with the hedged item (cash \ufb02ow hedge reserve) is adjusted to the lower of the following (in absolute amounts):(i) the cumulative gain or loss on the hedging instrument from inception of the hedge; and(ii) the cumulative change in fair value (present value) of the hedged item (i.e. The present value of the cumulative change in the hedged expected future cash \ufb02ows) from inception of the hedge.b) the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge (i.e. The portion that is offset by the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is recognized in other comprehensive income;c) any remaining gain or loss on the hedging instrument (or any gain or loss required to balance the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is hedge ineffectiveness that is recognized in profit or loss.d) the amount that has been accumulated in the cash \ufb02ow hedge reserve in accordance with (a) is accounted for as follows:(i) if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the Group removes that amount from the cash \ufb02ow hedge reserve and includes it directly in the initial cost or other carrying amount of the asset or the liability. This is not a reclassification adjustment and hence it does not affect other comprehensive income;(ii) for cash \ufb02ow hedges other than those covered by i), that amount is reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash \ufb02ows affect profit or loss (for example, in the periods that interest income or interest expense is recognized or when a forecast sale occurs);(iii) however, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.Most hedged items are transaction related. The time value of options, forward elements of forward contracts, and foreign currency basis spreads of financial instruments that are hedging the items affect profit or loss at the same time as those hedged items. Hedge accounting is discontinued prospectively when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. When the Group discontinues hedge accounting for a cash \ufb02ow hedge it accounts for the amount that has been accumulated in the cash \ufb02ow hedge reserve as follows: \u00b7 if the hedged future cash \ufb02ows are still expected to occur, that amount remains in the cash \ufb02ow hedge reserve until the future cash \ufb02ows occur. However, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment; \u00b7 if the hedged future cash \ufb02ows are no longer expected to occur, that amount is immediately reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment. A hedged future cash \ufb02ow that is no longer highly probable to occur may still be expected to occur.Fair value hedgesThe gain or loss on the hedging instrument shall be recognized in profit or loss (or other comprehensive income, if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income).The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts shall remain in other comprehensive income. When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in the fair value of the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding gain or loss recognized in profit or loss.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-192-8": {
"value": "Derivative financial instrumentsA derivative financial instrument is a financial instrument or other contract within the scope of IFRS 9 Financial Instruments with all three of the following characteristics: \u00b7 its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the \u2018underlying\u2019); \u00b7 it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; \u00b7 it is settled at a future date.The Group enters into a variety of derivative financial instruments (forward, future, option, collars and swap contracts) to manage its exposure to interest rate risk, foreign exchange rate risk, and commodity risk (mainly utility and CO emission rights price risks).2As explained above, derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in income or expense, unless the derivative is designated and effective as a hedging instrument. The Group designates certain derivatives as hedging instruments of the exposure to variability in cash \ufb02ows with respect to a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss (cash \ufb02ow hedges).A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivative instruments (or portions of them) are presented as non-current assets or non-current liabilities if the remaining maturity of the underlying settlements is more than twelve months after the reporting period. Other derivative instruments (or portions of them) are presented as current assets or current liabilities.Hedge accountingThe Group designates certain derivatives and embedded derivatives, in respect of interest rate risk, foreign exchange rate risk, Solvay share price risk, and commodity risk (mainly utility and CO emission rights price risks), as hedging instruments in a cash \ufb02ow hedge relationship.2At the inception of the hedge relationship, there is a formal designation and documentation of the hedging relationship and the Group\u2019s risk management objective and strategy for undertaking the hedge. So to apply hedge accounting: (a) there is an economic relationship between the hedged item and the hedging instrument, (b) the effect of credit risk does not dominate the value changes that result from that economic relationship, and (c) the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.The requirement under (a) above that an economic relationship exists means that there is an expectation that the value of the hedging instrument and the value of the hedged item will systematically change in the opposite direction in response to movements in either the same underlying (or underlyings that are economically related in such a way that they respond in a similar way to the risk that is being hedged).Cash \ufb02ow hedgesThe effective portion of changes in the fair value of hedging instruments that are designated in a cash \ufb02ow hedge is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.As long as cash \ufb02ow hedge qualifies, the hedging relationship is accounted for as follows:a) the separate component of equity associated with the hedged item (cash \ufb02ow hedge reserve) is adjusted to the lower of the following (in absolute amounts):(i) the cumulative gain or loss on the hedging instrument from inception of the hedge; and(ii) the cumulative change in fair value (present value) of the hedged item (i.e. The present value of the cumulative change in the hedged expected future cash \ufb02ows) from inception of the hedge.b) the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge (i.e. The portion that is offset by the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is recognized in other comprehensive income;c) any remaining gain or loss on the hedging instrument (or any gain or loss required to balance the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is hedge ineffectiveness that is recognized in profit or loss.d) the amount that has been accumulated in the cash \ufb02ow hedge reserve in accordance with (a) is accounted for as follows:(i) if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the Group removes that amount from the cash \ufb02ow hedge reserve and includes it directly in the initial cost or other carrying amount of the asset or the liability. This is not a reclassification adjustment and hence it does not affect other comprehensive income;(ii) for cash \ufb02ow hedges other than those covered by i), that amount is reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash \ufb02ows affect profit or loss (for example, in the periods that interest income or interest expense is recognized or when a forecast sale occurs);(iii) however, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.Most hedged items are transaction related. The time value of options, forward elements of forward contracts, and foreign currency basis spreads of financial instruments that are hedging the items affect profit or loss at the same time as those hedged items. Hedge accounting is discontinued prospectively when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. When the Group discontinues hedge accounting for a cash \ufb02ow hedge it accounts for the amount that has been accumulated in the cash \ufb02ow hedge reserve as follows: \u00b7 if the hedged future cash \ufb02ows are still expected to occur, that amount remains in the cash \ufb02ow hedge reserve until the future cash \ufb02ows occur. However, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment; \u00b7 if the hedged future cash \ufb02ows are no longer expected to occur, that amount is immediately reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment. A hedged future cash \ufb02ow that is no longer highly probable to occur may still be expected to occur.Fair value hedgesThe gain or loss on the hedging instrument shall be recognized in profit or loss (or other comprehensive income, if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income).The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts shall remain in other comprehensive income. When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in the fair value of the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding gain or loss recognized in profit or loss.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-193-7": {
"value": "Hedge accountingThe Group designates certain derivatives and embedded derivatives, in respect of interest rate risk, foreign exchange rate risk, Solvay share price risk, and commodity risk (mainly utility and CO emission rights price risks), as hedging instruments in a cash \ufb02ow hedge relationship.2At the inception of the hedge relationship, there is a formal designation and documentation of the hedging relationship and the Group\u2019s risk management objective and strategy for undertaking the hedge. So to apply hedge accounting: (a) there is an economic relationship between the hedged item and the hedging instrument, (b) the effect of credit risk does not dominate the value changes that result from that economic relationship, and (c) the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.The requirement under (a) above that an economic relationship exists means that there is an expectation that the value of the hedging instrument and the value of the hedged item will systematically change in the opposite direction in response to movements in either the same underlying (or underlyings that are economically related in such a way that they respond in a similar way to the risk that is being hedged).Cash \ufb02ow hedgesThe effective portion of changes in the fair value of hedging instruments that are designated in a cash \ufb02ow hedge is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.As long as cash \ufb02ow hedge qualifies, the hedging relationship is accounted for as follows:a) the separate component of equity associated with the hedged item (cash \ufb02ow hedge reserve) is adjusted to the lower of the following (in absolute amounts):(i) the cumulative gain or loss on the hedging instrument from inception of the hedge; and(ii) the cumulative change in fair value (present value) of the hedged item (i.e. The present value of the cumulative change in the hedged expected future cash \ufb02ows) from inception of the hedge.b) the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge (i.e. The portion that is offset by the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is recognized in other comprehensive income;c) any remaining gain or loss on the hedging instrument (or any gain or loss required to balance the change in the cash \ufb02ow hedge reserve calculated in accordance with (a)) is hedge ineffectiveness that is recognized in profit or loss.d) the amount that has been accumulated in the cash \ufb02ow hedge reserve in accordance with (a) is accounted for as follows:(i) if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the Group removes that amount from the cash \ufb02ow hedge reserve and includes it directly in the initial cost or other carrying amount of the asset or the liability. This is not a reclassification adjustment and hence it does not affect other comprehensive income;(ii) for cash \ufb02ow hedges other than those covered by i), that amount is reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash \ufb02ows affect profit or loss (for example, in the periods that interest income or interest expense is recognized or when a forecast sale occurs);(iii) however, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.Most hedged items are transaction related. The time value of options, forward elements of forward contracts, and foreign currency basis spreads of financial instruments that are hedging the items affect profit or loss at the same time as those hedged items. Hedge accounting is discontinued prospectively when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. When the Group discontinues hedge accounting for a cash \ufb02ow hedge it accounts for the amount that has been accumulated in the cash \ufb02ow hedge reserve as follows: \u00b7 if the hedged future cash \ufb02ows are still expected to occur, that amount remains in the cash \ufb02ow hedge reserve until the future cash \ufb02ows occur. However, if that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it immediately reclassifies the amount that is not expected to be recovered into profit or loss as a reclassification adjustment; \u00b7 if the hedged future cash \ufb02ows are no longer expected to occur, that amount is immediately reclassified from the cash \ufb02ow hedge reserve to profit or loss as a reclassification adjustment. A hedged future cash \ufb02ow that is no longer highly probable to occur may still be expected to occur.Fair value hedgesThe gain or loss on the hedging instrument shall be recognized in profit or loss (or other comprehensive income, if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income).The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts shall remain in other comprehensive income. When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in the fair value of the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding gain or loss recognized in profit or loss.",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-198-9": {
"value": "F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.Income and expenses on financial instruments recognized in other comprehensive income include the following:In \u20ac million Cash \ufb02ow hedgesForeign currency Interest rate risk Commodity risk Risk on Solvay Totalriskshare price2022 2021 2022 2021 2022 2021 2022 2021 2022 2021January 1 -7 16 7 2 2 1 17Recycling from other comprehensive income of derivative financial 31 -9 \ue61f \ue61f -257 -78 \ue61f \ue61f -226 -87instruments designated in a cash \ufb02ow hedge relationshipEffective portion of changes in fair value -10 -14 \ue61f \ue61f 317 85 -1 306 71of cash \ufb02ow hedgeDecember 31 13 -7 67 7 1 2 81 1Conventionally, (+) indicates an increase and (-) a reduction in equity.Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). NOTE\ue61fF34OTHER LIABILITIES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021Wages and benefits debts 371 303VAT and other taxes 184 153Social security 51 58Financial instruments - operational 676 1,350Insurance premiums 15 19Advances from customers 97 91Other 106 76Other current liabilities 1,499 2,051Financial instruments \u2013 operational include held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"pp-value-198-10": {
"value": "F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79Derivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2022Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 66 356 422Held for trading 130 545 675Total assets 196 901 1,097 727 276 94 1,097Cash \ufb02ow hedges -46 -176 -222Held for trading -146 -488 -634Total liabilities -192 -664 -856 -448 -100 -308 -856\ue61fEFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives AssociationDerivatives for utilities, CO and commodities2\ue61f \ue61f \ue61f \ue61f2021Amounts recognized in the statement of Amounts by counterpartyfinancial position\u20ac in million Non-Current Total Market Negotiated Other Totalcurrentclearedwith EFET/ISDA counterpartiesCash \ufb02ow hedges 79 218 298Held for trading 108 1,093 1,201Total assets 187 1,312 1,499 891 390 218 1,499Cash \ufb02ow hedges -71 -219 -291Held for trading -107 -1,116 -1222Total liabilities -178 -1,335 -1,513 -931 -143 -439 -1,513EFET = European Federation of Energy Traders (EFET), ISDA = International Swaps and Derivatives Association\ue61fThe amounts of these financial instruments are significant as they are presented gross in accordance with IAS 32. However, the credit risk remains limited considering that: \u00b7 Most instruments are negotiated with market cleared counterparties;\ue61f \u00b7 Very low risk is associated with counterparty members of the European Federation of Energy Traders or of the International Swaps and Derivatives Association, with high credit ratings (A-1/A+). No significant credit value adjustment is re\ufb02ected in these derivatives\u2019 fair market value.Income and expenses of financial instruments recognized in the consolidated income statement and in other comprehensive incomeIn \u20ac million 2022 2021Recognized in the consolidated income statement \ue61fRecycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship \ue61f \ue61fForeign currency risk -31 9Utility risk 238 78Changes in the fair value of financial instruments held for trading Utility risk 259 88CO risk 2 -42Recognized in the gross margin 468 170Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskSolvay share priceChanges in the fair value of financial instruments held for trading CO risk 1882Solvay share price -2 2Gains and losses (time value) on derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency riskForeign operating exchange gains and losses 0 1Recognized in other operating gains and losses 186 3Recycling from OCI of derivative financial instruments designated in a cash \ufb02ow hedge relationship Foreign currency risk 0 1Recognized in results from portfolio management and reassessments 0 1Net interest expense -79 -80Financial charge on lease liabilities -21 -19Other gains and losses on net indebtedness (excluding gains and losses on items not related to financial instruments)Foreign currency risk -4 -1Interest element of financial instruments 10 8Others -3 -7Recognized in charges on net indebtedness (*) -97 -100Dividends from equity instruments measured at fair value through other comprehensive income -13 6Total recognized in the consolidated income statement 544 80 (*) The note F6 Net Financial Charges shows an amount of \u20ac(98) million for 2022 (\u20ac(103) million for 2021) reported under \u201cNet cost of borrowings\u201d. This amount includes \u20ac\ue61d(1) million for 2022 (\u20ac\ue61d(3) million for 2021) of financial expenses not related to financial instruments that are excluded in this table from the line item \u201cRecognized in charges on net indebtedness\u201d.The loss on highly probable sales in foreign currency recognized in gross margin for \u20ac(31) million and the gain recognized on utility instruments for \u20ac\ue61f238\ue61fmillion are the result of the recycling of gains and losses of derivative financial instruments designated in a cash \ufb02ow hedge relationship. The loss of \u20ac(31) million is mainly due to the hedging of the US$ currency and the gain on utility for \u20ac238 million is mainly related to gas procurement for \u20ac\ue61f450\ue61fmillion, coal for \u20ac55 million, partially offset by a loss on power procurement for \u20ac(267) million. The change in fair value of financial instruments held for trading recognized in gross margin is explained by: \u00b7 a gain of \u20ac259 million (\u20ac88 million in 2021) mainly due to the price increase of gas and electricity; \u00b7 a gain of \u20ac2 million (a loss of \u20ac(4) million in 2021) mainly due to the price variation of CO;2The gain of \u20ac186 million (a gain of \u20ac3 million in 2021) recognized in other operating gains and losses is mainly explained by the CO emission rights, 2previously considered under the \u201cown use\u201d exemption. The remaining amounts are related to changes in fair value of equity swaps for long-term incentives. In the caption other gains and losses on net indebtedness, the gain of \u20ac10 million (\u20ac8 million for 2021) is related to the interest element of financial derivatives (forward points). The other costs decreased from \u20ac(7) million in 2021 to \u20ac(3) million in 2022. In 2022, these costs included \u20ac(2) million related to a loan write-off. In 2021, these costs include \u20ac(6) million related to the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.Income and expenses on financial instruments recognized in other comprehensive income include the following:In \u20ac million Cash \ufb02ow hedgesForeign currency Interest rate risk Commodity risk Risk on Solvay Totalriskshare price2022 2021 2022 2021 2022 2021 2022 2021 2022 2021January 1 -7 16 7 2 2 1 17Recycling from other comprehensive income of derivative financial 31 -9 \ue61f \ue61f -257 -78 \ue61f \ue61f -226 -87instruments designated in a cash \ufb02ow hedge relationshipEffective portion of changes in fair value -10 -14 \ue61f \ue61f 317 85 -1 306 71of cash \ufb02ow hedgeDecember 31 13 -7 67 7 1 2 81 1Conventionally, (+) indicates an increase and (-) a reduction in equity.Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). Interest rate risksSee the Financial risk in the Management of risks section of this annual report for additional information on the interest rate risks management.Interest rate risk is managed at Group level.The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and \ufb02oating interest rates. Interest rate risk is managed at Group level by maintaining an appropriate mix between fixed and \ufb02oating rate borrowings.Interest rate exposure by currency is summarized below:In \u20ac million December 31, 2022 December 31, 2021Currency Fixed rate Floating rate Total Fixed rate Floating rate TotalFinancial debt \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR -1,642 -32 -1,673 -1,923 -18 -1,941USD -1,153 -11 -1,163 -1,246 -23 -1,269BGN 0 -33 -33 0 -4 -5SAR 0 0 0 \ue61f -18 -18INR -11 -6 -17 -39 0 -39KRW -19 -7 -26 -21 -1 -22THB -12 0 -12 -11 0 -11BRL -12 0 -12 -9 -2 -11Other -22 -1 -23 -28 -4 -32Total -2,870 -90 -2,959 -3,277 -71 -3,349Cash and cash equivalents \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR \ue61f 201 201 \ue61f 206 206USD \ue61f 320 320 \ue61f 458 458CAD \ue61f 53 53 \ue61f 5 5THB \ue61f 28 28 \ue61f 36 36SAR \ue61f 11 11 \ue61f 15 15BRL \ue61f 177 177 \ue61f 53 53CNY \ue61f 22 22 \ue61f 35 35KRW \ue61f 7 7 \ue61f 7 7JPY \ue61f 30 30 \ue61f 33 33Other \ue61f 83 83 \ue61f 93 93Total \ue61f 932 932 \ue61f 941 941Other financial instruments \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fCNY \ue61f 43 43 \ue61f 70 70EUR \ue61f 185 185 \ue61f 160 160SAR \ue61f 4 4 \ue61f 21 21Other \ue61f 4 4 \ue61f 8 8Total \ue61f 236 236 \ue61f 259 259\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fTotal -2,870 1,078 -1,791 -3,277 1,128 -2,149At the end of 2022, approximately \u20ac2.87 billion of the Group\u2019s gross debt was at fixed-rate, and is largely comprised of: \u00b7 Senior EUR Bonds for a total of \u20ac1,100 million maturing in 2027 and 2029 (carrying amount of \u20ac1,094 million); \u00b7 Remaining portion (US$ 163 million) of the US$ Senior Bonds 2025 of US$ 250 million (carrying amount of \u20ac152 million); \u00b7 Senior US$ Bond for a total of US$ 800 million (carrying amount of \u20ac748 million); \u00b7 IFRS 16 lease liability for a total of \u20ac524 million (carrying amount of \u20ac524 million).The \ufb02oating rate debts that are subject to interest rate swaps are discussed below. The impact of interest rate volatility at the end of 2022 compared to 2021 is the following:Sensitivity to a + 100bp movement in Sensitivity to a - 100bp movement EUR market interest ratesin EUR market interest ratesIn \u20ac million 2022 2021 2022 2021Profit or loss -1 0 1 0The sensitivity to interest rates\u2019 volatility remains insignificant at the end of 2022 compared to 2021 as the \ufb02oating rate debt is very limited.Interest rate risk hedged by instrument accounted for as held for tradingIn \u20ac million Notional amount Fair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021Held for trading 0 18Total 0 18The notional amount reported in 2021 under \u201cheld for trading\u201d is mainly explained by a cross currency swap contracted in May 2017 and settled in the course of 2022 to mitigate the volatility (forex and interest rate) of the external financing set up for the Group\u2019s HPPO joint operation (Saudi Hydrogen Peroxide Company) 50/50 with Sadara in Saudi Arabia (notional amount \u20ac18 million corresponding to 50%). Interest rate risk hedged by instrument accounted for as a hedging instrument in a cash \ufb02ow hedgeIn 2022, there are no outstanding interest rate instruments accounted for under cash \ufb02ow hedges.\ue61fOther market risks\u2014 Utility and CO2 price risksThe Group purchases a large portion of its coal, gas and electricity needs in Europe and the United States based on \ufb02uctuating liquid market indices. Moreover, the Group purchases raw materials with a price formula referring to market indices (e.g. benzene). In order to reduce the cost volatility, the Group has developed a policy for exchanging variable price against fixed price through derivative financial instruments. Most of these hedging instruments can be documented as hedging instruments of the underlying purchase contracts. Utility purchase contracts at fixed price with a physical delivery for use in the Group's operations are qualified as own use contracts and constitute a natural hedge. Those have not been included in this note. Similarly, the Group's exposure to CO price is partially hedged by forward purchases of European Union Allowances (EUA). In 2021, forward purchases 2with physical delivery for use in the Group's operations were qualified as own use contracts (not derivatives). In 2022, in view of both increased volatility in energy and CO markets and the plan to separate Solvay SA into two independent groups, the Group reconsidered the conditions of the own use 2exemption. Accordingly the entire portfolio of CO emission rights forward purchases has been accounted for at the end of Q2 2022 in accordance with 2the general rules of IFRS\ue61f9, and a profit of \u20ac322 million has been classified as \u201cOther operating gains and losses\u201d. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.Finally, some exposure to gas, coal and electricity prices may arise from the production of electricity on Solvay sites (mostly from cogeneration units in Europe), which can be hedged by means of forward purchases and forward sales or optional schemes. In this case, cash \ufb02ow hedge accounting is applied.Financial hedging of utility and CO emission rights price risks is managed centrally by Energy Services on behalf of the Group entities.2Energy Services also carries out trading transactions with respect to utility and CO.2The following tables detail the notional principal amounts and fair values of utility and CO derivative financial instruments outstanding at the end of the 2reporting period:Held for trading Notional amount of Notional amount of the instrument Fair value of the Fair value of the (1)the instrument(in units)instrument - Assetinstrument - LiabilityDecember 31 2022 2021 2022 2021 2022 2021 2022 2021In \u20ac million (except where indicated)Coal \ue61f Tons \ue61fPower 922 1,189 7,318,874 21,005,859 MWh 307 764 -306 -781Standard Quality Gas 619 613 13,372,959 27,701,363 MWh 347 434 -282 -437CO10 11 707,550 206,294 Tons 21 4 -46 -52Total 1,550 1,813 \ue61f \ue61f 675 1,202 -634 -1,223(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.The amounts presented in the tables hereafter include hedging needs of the GBUs of the Group that are sourced through Energy Services, and not the full Group utility hedging needs.December 31, 2022\ue61fCash \ufb02ow Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair value Fair hedgeamount amount of tional amount tage of hedge \ufb02ow of the in-value of the the instru-amount of the risk expo-price hedge strument of the instru-ment (in of the exposure (in sure per risk re-- Assetinstru- (1) mentunits)risk ex-units)hedgedcatego-servement posurery- Lia-bilityIn \u20ac million (except where indicated)\ue61fBenzeneCoalEUR/Power 154 1,078,973 MWh 702 3,505,469 MWh 31% 13271 40 -111MWhStandard Quality EUR/330 13,525,810 MWh 1,650 34,722,420 MWh 39% 33-156 240 -84GasMWhCO2368 5,440,050 Tons 1,150 24,096,508 Tons 45% 61 EUR/Tons 152 142 -26Total 899 67 422 -221(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.December 31, 2021Cash \ufb02ow hedge Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair Fair amount amount of tional amount tage hedge \ufb02ow value value of the the instru-amount of the risk of ex-price hedge of the of the instru-ment (in of the exposure (in posure per risk re-instru-instru- (1) mentunits)risk ex-units)hedgedcatego-servement - ment - posureryAssetLiabilityIn \u20ac million (except where indicated)\ue61fBenzene 1 1,477 Tons 1 1,479 Tons 100% 556 EUR/tonCoal 17 243,000 Tons 62 702,041 Tons 35% 77 USD/ton 5 6 -1Power 154 2,506,335 MWh 607 3,591,600 MWh 70% 62 EUR/MWh -270 1 -271Standard Quality 254 13,648,389 MWh 954 24,096,508 MWh 57% 19 EUR/MWh 273 291 -18GasTotal 426 \ue61f \ue61f 1,625 \ue61f \ue61f \ue61f \ue61f \ue61f 8 298 -290(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates. \u00b7 In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.In the wake of the European energy crisis impacting gas consumption in several countries and due to the European Union's sanctions on the sourcing of gas and coal from Russia, the Group revised the expected activity of several of its cogeneration units in Europe in Q3 2022 with a view to both preserving business continuity and reducing gas consumption. These developments triggered the need to reassess the probability and conditions of future energy consumption at each site when updating the Cash Flow Hedge (CFH) documentation. As part of this reassessment, the Group identified certain hedges for which the underlying future energy purchases are no longer highly probable (but still expected to occur) or subject to modified purchasing conditions, resulting in those hedges ceasing to meet the qualifying criteria for CFH accounting during Q3 2022. The discontinuation of hedge accounting resulted in a favorable \u20ac39 million accumulated mark-to-market that will remain in Other Comprehensive Income with future recycling to the consolidated income statement as the underlying transactions occur (\u20ac18 million in 2022, \u20ac18 million in 2023).Fair value hedgeOn December 31, 2022, the Group covers a part of its CO emission rights in inventory by forward sales of CO emission rights to a related party. The 22Group qualifies this hedging strategy as Fair value hedge. The change in fair value of forward sales are accounted in profit and loss, concomitantly with the revaluation of the CO emission rights held in inventory.2The Group has established a 1:1 hedge ratio for the underlying risk of the forward sales of CO emission rights to the related party that is identical to the 2hedged risk component.\ue61fThe impact of the hedging instrument on the statement of financial position as at December 31, 2022 is, as follows:December 31, 2022Balance sheet Change in fair value used for Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets Liabilities\ue61f In Tons In \u20ac million In \u20ac million \ue61f In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f\ue61f\ue61f \ue61fHedgeCO emission Financial 286,500 1\ue61f-6\ue61f-6rights forwardsinstrumentDecember 31, 2022Balance sheet Change in fair value used for \ue61f Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets LiabilitiesIn Tons In \u20ac million In \u20ac million In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fHedgeCO emission 286,500 -1 7 \ue61f Inventories 6 \ue61frights forwardsThe sensitivities of commodity derivative financial instruments as of December 31, 2022 are presented below.The sensitivities were defined based on the price levels and volatility levels of each commodity. These assumptions do not constitute an estimation of future market prices and the sensitivities presented are not representative of future changes in Solvay's equity and results. \ue61fDecember 31, 2022Price change Other comprehensive income Profit or lossIn \u20ac millionNatural gas +10\u20ac/MWh -109 - Natural gas -10\u20ac/MWh 109 - Electricity +30\u20ac/MWh 32 1 Electricity -30\u20ac/MWh -32 -1CO Emission rights +5\u20ac/T 28 -2CO Emission rights -5\u20ac/T -28 -2Performance Share Units Plan (PSU) risk on Solvay share priceIn order to neutralize the volatility of the Solvay share price, which will impact the liability valuation relating to the cash settled PSU plans (with related employer charges), the Group entered into equity swaps covering approximately 100% of the risk. In 2022, a liability of \u20ac39 million, recognized for 2020 and 2021 PSU plans (in 2021, \u20ac24 million for the 2020 and 2021 PSU plans) corresponds to the best estimate of the amount due at maturity.Credit riskSee the Financial risk in the Management of risks section of this annual report for additional information on credit risk management. The Group continuously monitors the credit risk of important business partners. The Group engages in transactions only with financial institutions with a good credit rating. The Group monitors and manages exposures to financial institutions within approved counterparty credit limits and credit risk parameters in order to mitigate the risk of default. For financial guarantees, see note F36 Contingent assets, liabilities and financial guarantees.The Group recognizes expected credit losses on all of its trade receivables: it applies the simplified approach and recognizes lifetime expected losses on all trade receivables, using a provision matrix in order to calculate the lifetime expected credit losses for trade receivables, using historical information on defaults adjusted for the forward-looking information. The Group classifies the customers and their related receivables in various rating classes, based on the risks\u2019 grading attributed to the customers and on the aging balance of receivables. As such, for all receivables overdue below six months, the Group considers percentages within a range between 0.005% and 4.204%, depending on the rating class. For all receivables overdue in excess of six months, the Group considers a rate of 50% or of 100%, depending on the rating class. The customer\u2019s grading is reviewed annually for customers assessed as low risk profile, and every six months for customers assessed as higher risk profile. There is no significant concentration of credit risk at Group level because the receivables\u2019 credit risk is spread over a large number of customers and markets.The ageing of trade receivables, financial instruments - operational, loans and other non-current assets is as follows:\ue61f \ue61f With expected loss allowance, not credit-impairedDecember 31, 2022In \u20ac millionTotal Credit-not past less than between 30 between 60 and more than 90 impaireddue30 days and 60 days 90 days past duedays past duepast duepast dueTrade receivables 2,098 68 1,986 33 6 1 3Trade receivables - allowance -72 -67 -2 0 \ue61f \ue61f -2Trade receivables - net 2,026 1 1,984 33 6 1 1Financial instruments - 1,125 \ue61f 1,125 \ue61f \ue61f \ue61f \ue61foperationalLoans and other non-current assets 312 12 300 0 \ue61f \ue61f \ue61fLoans and other non-current assets -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61f- allowanceLoans and other non-current 301 0 300 0 0 0 0assets - netTotal 3,452 1 3,410 33 6 1 1The Loans and other non-currents assets do not include the long-term inventory balance.December 31, 2021\ue61f With expected loss allowance, not credit-impairedIn \u20ac millionTotal Credit-im-not past less than between 30 between 60 more than paireddue30 days and 60 days and 90 days 90 days past duepast duepast duepast dueTrade receivables 1,857 50 1,765 36 2 1 3Trade receivables - allowance -51 -49 -2 \ue61f \ue61f \ue61f -1Trade receivables - net 1,805 2 1,763 36 2 1 2Financial instruments - operational 1,513 \ue61f 1,513 \ue61f \ue61f \ue61f \ue61fLoans and other non-current assets 511 11 500 0 \ue61f \ue61f \ue61fLoans and other non-current assets - -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61fallowanceLoans and other non-current assets 500 0 500 0 0 0 0- netTotal 3,818 2 3,776 36 2 1 2The table below presents the allowances on trade receivables:In \u20ac million2022 2021January 1 -51 -39Additions -22 -19Uses 2 5Reversal 1 2Currency translation differences -2 0December 31 -72 -51Liquidity riskSee the Financial risk in the Management of risks section of this annual report for additional information on the liquidity risk management.Liquidity risk relates to Solvay\u2019s ability to service and refinance its debt (including notes issued) and to fund its operations.This depends on its ability to generate cash from operations and not to overpay for acquisitions.The Finance Committee gives its opinion on the appropriate liquidity risk management for the Group\u2019s short, medium and long term funding and liquidity management requirements.The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash \ufb02ows, and by matching the maturity profiles of financial assets and liabilities.The Group staggers the maturities of its financing sources over time in order to limit amounts to be refinanced each year.The following tables detail the Group\u2019s remaining contractual maturity for its financial liabilities with contractual repayment periods.\ue61fThe tables have been prepared using the discounted cash \ufb02ows of financial liabilities, based on the earliest date on which the Group can be required to pay. The following tables present discounted amounts (carrying amounts):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,435 399 10 1,423 604Leasing debt 524 111 90 160 164Total 6,386 3,646 178 1,781 782In \u20ac million December 31, 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,844 676 187 873 1,108Leasing debt 505 97 70 159 179Total 7,320 4,413 292 1,278 1,336The following tables present undiscounted amounts (nominal value):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,444 399 9 1,428 608Leasing debt 524 111 90 160 164Total 6,395 3,646 178 1,786 785Interests on financial debt and lease liabilities 321 78 73 122 48Total out\ufb02ows of cash 6,717 3,724 251 1,908 833\u20ac million 31 December 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,856 677 188 877 1,115Leasing debt 505 97 70 159 179Total 7,333 4,414 293 1,282 1,343Interests on financial debt and lease liabilities 379 86 74 158 62Total out\ufb02ows of cash 7,712 4,500 367 1,439 1,405Trade payables include \u20ac172 million (2021: \u20ac198 million) due to suppliers that have signed up for a supply chain financing program, under which the suppliers can elect to receive a discounted early payment from the partner bank rather than being paid in line with the agreed payment terms. If the option is taken, the Group\u2019s liability is assigned by the supplier to the partner bank. The value of the Group's liability remains unchanged. The Group assesses each arrangement against indicators to determine if the liabilities which suppliers have sold to the partner bank under the supplier financing scheme continue to meet the definition of trade payables or should be classified as financial debt. On December 31, 2022 and 2021, the liabilities met the criteria of Trade Payables.Solvay\u2019s liquidity amounts to \u20ac6.7 billion including \u20ac932 million of cash and cash equivalents on the statement of financial position and \u20ac\ue61f5.8 billion of committed fully undrawn credit facilities (\u20ac2.9 billion term loan in the context of the separation plan, \u20ac2 billion multilateral RCF due 2024, and \u20ac0.9 billion bilateral RCF, largely multi-year) unused at the end of December 2022.In addition, Solvay has access to a Belgian Treasury Bill program for \u20ac1.5 billion and, alternatively, to a US commercial paper for US$ 500 million (no outstanding balance for both on December 31, 2022). The two programs are covered by back-up credit lines.\ue61fNOTE\ue61fF33NET INDEBTEDNESSThe Group\u2019s net indebtedness is the balance between its financial debts and other financial instruments, and cash and cash equivalents.December 31, 2022 December 31, 2021In \u20ac millionFinancial debt 2,959 3,349Cash and cash equivalents -932 -941Other financial instruments -236 -259Net indebtedness 1,791 2,149The decrease in the net indebtedness is mainly due to the strong free cash \ufb02ow generation.\ue61f\ue61fSolvay Investment Grade rating is Baa2/P2 (stable outlook) with Moody\u2019s and BBB/A2 (negative outlook) with Standard & Poor\u2019s (upon the Solvay announcement of March 15, 2022 indicating the plans to separate itself into two independent companies).Financial debt: main borrowings December 31, 2022 December 31, 2021In \u20ac million (except where indicated) Nominal Coupon Maturity Secured Amount Fair Amount at Fair amountat avalueamortized valuemortized costcostSenior \u20ac notes 1.625% 2022 No 377 382Senior US$ note Cytec Industries Inc. (issuance 3.5% 2023 No 172 177US$ 400 million)Senior US$ note Cytec Industries Inc. (issuance 153 3.95% 2025 No 152 147 143 153US$ 250 million)Senior US$ notes (144A;US$ 800 million) 750 4.45% 2025 No 748 721 704 769Senior \u20ac notes 500 2.75% 2027 No 497 482 497 564Senior \u20ac notes 600 0.500% 2029 No 597 479 596 593Total 1,994 1,829 2,489 2,638There are no instances of default on the above-mentioned financial debts. There are no financial covenants, neither on Solvay SA, nor on any of the Group\u2019s holding companies.In 2022, the senior EUR bond (\u20ac378 million) was fully repaid in September as well as the Cytec bond (US$ 196 million) in December.Other financial instrumentsIn \u20ac million December 31, 2022 December 31, 2021Non-current other financial instruments 30 30Current other financial instruments 206 229Currency swaps 1 4Other marketable securities > 3 months 43 70Other current financial assets 162 155Other financial instruments 236 259The other marketable securities > 3 months include the bank drafts position.The other current financial assets mainly include margin calls of Energy Services for instruments with a negative fair value, and represent collateral for the obligations. Cash and cash equivalentsIn \u20ac million December 31, 2022 December 31, 2021Cash 630 620Term deposits 303 320Cash and cash equivalents 932 941By their nature, the carrying amount of cash and cash equivalents is equal to, or a very good proxy of, its fair value. Changes in financial debt and in other financial instruments arising from financing activities2021 2022In \u20ac million Total Cash \ufb02ows Cash \ufb02ows Changes Changes Other in Transfer Payment Other Total from from in foreign in other financing from non-of lease increase of repayment exchange current cash current to liabilities borrowings of rates financial \ufb02ows current borrowings assets Bonds 2,112 3 65 -186 1,994Other non-current debts 55 24 -32 2 -9 3 42Long term leasing debt 409 10 -125 119 413Non-current financial 2,576 27 -32 77 -320 121 2,450debtCurrent financial debt 773 222 -764 3 128 320 -113 -59 510Total financial debt 3,350 248 -796 80 128 -113 63 2,960Other non-current -30 -30financial instrumentsCurrency swaps -4 3 -1Other marketable-70 1 26 -43 securities > 3 monthsOther current financial -155 -2 1 -5 -162assetsOther financial -229 -1 27 -2 -206instrumentsTotal cash \ufb02ow -310 248 -796 79 27 128 -113 61 -366The financial debt decreased from \u20ac3,350 million at the end of 2021 to \u20ac2,960 million at the end of 2022.The non-current financial debt decreased by \u20ac(127) million, mainly resulting from: \u00b7 the transfer to current financial debt for \u20ac(320) million (mainly explained by the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186)\ue61fmillion and IFRS 16 leases for \u20ac(125) million); \u00b7 the change in foreign exchange rates for \u20ac77 million (significant impact of \u20ac65 million on senior bonds in USD); \u00b7 \u20ac119 million in \u201cOther\u201d mainly relates to leases that commenced during the year, as well as lease modifications.The current financial debt decreased by \u20ac(263) million, mainly in short term financial debt: \u00b7 the repayment in September 2022 of \u20ac(378) million for the remaining portion of the \u20ac750 million bonds and the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186) million; \u00b7 the transfer from non-current financial debt to current for \u20ac320 million (mainly explained by the Cytec bond US$ 196 million early repayment in December\ue61f2022 for \u20ac186 million and IFRS 16 leases for \u20ac125 million); \u00b7 the increase and decrease of borrowings is mainly explained by the issuance of commercial paper in June 2022 for \u20ac80 million, fully repaid in September\ue61f2022; and by short-term financing needs in Bulgaria and India; \u00b7 the increase of \u20ac128 million of margin calls on hedging instruments as part of Energy Services\u2019 activities; \u00b7 the repayment of short term lease obligations under IFRS 16 of \u20ac(113) million. The other financial instruments decreased by \u20ac23 million, mainly for the collateral related to the margin calls on energy services (see note F33 Net indebtedness), following the increase in the energy and gas prices. ",
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"value": "F32.A. Overview of financial instrumentsThe following table gives an overview of the carrying amount of all financial instruments by category as defined by IFRS 9. Financial InstrumentsDecember 31, 2022 December 31, 2021In \u20ac million Carrying amount Carrying amount Fair value through profit or loss 731 1,275 Held for trading (financial instruments - operational - see note F26) 683 1,209 Held for trading (other financial instruments - see note F33, table Changes in financial debt) 1 4 Equity instruments measured at fair value through profit or loss 47 62 Financial assets measured at amortized cost 3,360 3,223 Financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, loans and 3,360 3,223 other current/non-current assets except pension fund surpluses and long-term inventory balance) Financial assets measured at fair value through other comprehensive income 466 356 Derivative financial instruments designated in a cash flow hedge relationship (see note F26) 442 304 Equity instruments measured at fair value through other comprehensive income 24 51 Total financial assets 4,557 4,853 Fair value through profit or loss -641 -1,228 Held for trading (financial instruments - operational - see note F34) -639 -1,225 Held for trading (financial debt - see note F33, table Changes in financial debt) -2 -3Financial liabilities measured at amortized cost -5,005 -5,284 Financial liabilities measured at amortized cost (excluding dividends payable and IFRS 16 lease liabilities) -4,841 -5,124 Dividends payables -165 -160Lease liabilities measured at amortized cost -524 -505Lease liabilities IFRS16 measured at amortized cost -524 -505Financial Liabilities measured at fair value through other comprehensive income -229 -304Derivative financial instruments designated in a cash flow hedge relationship (see note F34) -229 -304Total financial and lease liabilities -6,399 -7,320 The category \u201cHeld for trading\u201d contains derivative financial instruments that are used for management of foreign currency risk, interest rate risk, utility and CO emission rights price risks, index and Solvay share price. Contracts which have been documented as hedging instruments (hedge accounting 2under IFRS 9 Financial Instruments) or which meet the exemption criteria for own use are not included in the category \u201cHeld for trading\u201d. Equity instruments measured at fair value through OCI and through profit or loss pertain to Solvay\u2019s New Business Development (NBD) activity: the Group has built a Corporate Venturing portfolio, which consists of direct investments in start-up companies and of investments in venture capital funds. If the Group does not have significant in\ufb02uence or joint control, the investments are measured at fair value according to the valuation guidelines published by the European Private Equity and Venture Capital Association. The impacts of the direct investments are recognized in other comprehensive income while the venture capital funds are generally recognized through profit and loss. NOTE\ue61fF40LIST OF COMPANIES INCLUDED IN THE CONSOLIDATION SCOPEThe Group consists of Solvay\ue61fSA and a total of 304 investees.Of these 304\ue61finvestees, 152 are fully consolidated, 7 are proportionately consolidated and 23 are accounted for under the equity method, whilst the other 122 do not meet the\ue61fcriteria of significance.In accordance with the concept of materiality, certain companies (Other Investments), which are insignificant, have not been included in the consolidation scope. They are measured at cost and tested for impairment on an annual basis, which is considered a good proxy of their fair value. For more information, refer to Principles of consolidation.List of companies entering or leaving the consolidation scopeCompanies entering the consolidation scopeCountryCompanyCommentsPORTUGAL Solvay Biotecnologia Portugal LDA, Carnaxide New companyLUXEMBOURG Renestia S.A., Capellen New companyUNITED KINGDOM Oldbury Energy Solutions UK Ltd, Oldbury Meets the consolidation criteriaUNITED STATES Energy Solutions US LLC, Breckenridge, TX Meets the consolidation criteriaCompanies leaving the consolidation scopeCountryCompanyCommentsLATVIA Solvay Business Services Latvia SIA, Riga LiquidatedUNITED KINGDOM Penso Holdings Ltd, Coventry LiquidatedUNITED STATES Solvay Soda Ash Expansion JV, Houston, Texas Merged into American Soda LLC\ue61f Solvay Soda Ash Joint Venture, Houston, Texas Merged into American Soda LLCList of joint operationsIndicating the percentage holding. AUSTRIASolvay Sisecam Holding AG, Wien 75BELGIUM \ue61fBASF Interox H2O2 Production N.V., Brussels 50BULGARIA \ue61fSolvay Sodi AD, Devnya 73.5NETHERLANDS \ue61fMTP HP JV C.V., Weesp 50MTP HP JV Management bv, Weesp 50SAUDI ARABIA \ue61fSaudi Hydrogen Peroxide Co, Jubail 50THAILAND \ue61fMTP HP JV (Thailand) Ltd, Bangkok 50",
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"value": "F32.B. Fair value of financial instrumentsValuation techniques and assumptions used for\ue61fmeasuring fair value.Accounting policyQuoted market prices are available for financial assets and financial liabilities with standard terms and conditions that are traded on active markets. The fair values of derivative financial instruments are equal to their quoted prices, if available. In case such quoted prices are not available, the fair value of the financial instruments is determined based on a discounted cash \ufb02ow analysis using the applicable yield curve derived from quoted interest rates matching maturities of the contracts for non-optional derivatives. Optional derivatives are fair valued based on option pricing models, taking into account the present value of probability weighted expected future payoffs, using market reference formulas.The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash \ufb02ow analysis.Fair value of financial instruments measured at amortized cost (excluding IFRS 16 lease liabilities)In \u20ac million December 31, 2022 December 31, 2021Carrying Fair value Carrying Fair valueamountamountNon-current assets - Financial instruments \ue61f 197 197 \ue61f 252 252Loans and other non-current assets (except pension fund sur-\ue61f 197 197 \ue61f 252 252pluses and long-term inventory balance)\ue61f \ue61f \ue61f Non-current liabilities - Financial instruments \ue61f -2,148 -1,994 \ue61f -2,321 -2,465Bonds \ue61f -1,994 -1,830 \ue61f -2,112 -2,256Other non-current debts \ue61f -42 -42 \ue61f -55 -55Other liabilities \ue61f -112 -112 \ue61f -153 -153The carrying amounts of current financial assets and liabilities are estimated to reasonably approximate their fair values, due to the short term to maturity.Financial instruments measured at fair value in\ue61ethe\ue61econsolidated statement of financial positionThe table \u201cFinancial instruments measured at fair value in the consolidated statement of financial position\u201d provides an analysis of financial instruments that, subsequent to their initial recognition, are measured at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. Financial instruments, classified as held for trading and as hedging instruments in cash \ufb02ow hedges are mainly grouped into Levels 1 and 2. They are fair valued based on forward pricing and swap models using present value calculations. The models incorporate various inputs including foreign exchange spot and interest rates of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. The equity instruments measured at fair value through OCI and through profit and loss are presented within Level 1 and 3. The fair value of the instruments presented under Level 3 is measured based on the guidelines recommended by The International Private Equity and Venture Capital Valuation (IPEV).\ue61fIn accordance with the Group internal rules, the responsibility for measuring the fair value level resides with (a) the Treasury department for the non-utility derivative financial instruments, and the non-derivative financial liabilities, (b) the Sustainable Development and Energy department for the utility derivative financial instruments and (c) the Finance department for non-derivative financial assets.The Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the year, no such transfers have occurred.Financial instruments measured at fair value in the consolidated statement of financial positionDecember 31, 2022In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 483 200 683Foreign currency risk 5 5Utility risk 466 188 654CO risk 17 4 212Solvay share price 2 2Index 2 2Equity instruments measured at fair value through profit or loss 47 47New Business Development 47 47Cash \ufb02ow hedges 184 259 442Foreign currency risk 20 20Utility risk 44 236 280CO risk 140 2 1422Solvay share priceEquity instruments measured at fair value through other 24 24comprehensive incomeNew Business Development 24 24Total assets 667 459 71 1,197\ue61fHeld for trading -275 -366 -640Foreign currency risk -3 -3Utility risk -275 -313 -588CO risk -46 -462Solvay share price -1 -1Index -2 -2Cash \ufb02ow hedges -127 -102 -229Foreign currency risk -7 -7Utility risk -103 -93 -195CO risk -24 -2 -262Solvay share price -1 -1Total liabilities -401 -468 -869In 2022, the fair value of the financial instruments to manage the utility risk remains significant due to the unprecedented rise in the prices of power and gas. In Q2 2022, management practices related to the hedging of CO risk exposure were changed in view of both increased volatility in Energy and 2CO markets and the separation plan.\ue61f Consequently, the own use accounting exemption was reconsidered and the related portfolio of CO emission 22rights was accounted for in accordance with the general rules of IFRS 9 at fair value through profit or loss and a profit of \u20ac322 million was recognized. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.December 31, 2021In \u20ac million Level 1 Level 2 Level 3 TotalHeld for trading 773 439 \ue61f 1,212Foreign currency risk \ue61f 7 \ue61f 7Utility risk 769 429 \ue61f 1,198CO risk 4 42Solvay share price \ue61f 2 \ue61f 2Index \ue61f 2 \ue61f 2Equity instruments measured at fair value through profit or loss \ue61f \ue61f 62 62New Business Development \ue61f \ue61f 62 62Cash \ufb02ow hedges 38 266 \ue61f 304Foreign currency risk \ue61f 5 \ue61f 5Utility risk 38 260 \ue61f 298Solvay share price \ue61f 1 \ue61f 1Equity instruments measured at fair value through35 \ue61f 17 51other comprehensive incomeNew Business Development 35 \ue61f 17 51Total assets 846 705 79 1,630\ue61f \ue61f \ue61f \ue61f \ue61fHeld for trading -620 -608 \ue61f -1,228Foreign currency risk \ue61f -4 \ue61f -4Utility risk -620 -598 \ue61f -1,217CO risk 0 -4 \ue61f -52Index \ue61f -2 \ue61f -2Cash \ufb02ow hedges -232 -72 \ue61f -304Foreign currency risk \ue61f -13 \ue61f -13Utility risk -232 -59 \ue61f -291Total liabilities -852 -679 \ue61f -1,531Movements of the periodReconciliation of level 3 fair value measurements of financial assets and liabilities.December 31, 2022At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 62 17 79Total gains or losses- Recognized in profit or loss -15 -15- Recognized in other comprehensive income 8 8Acquisitions -1 -1 -2Capital decreasesTransfers out of level 3December 31 47 24 70December 31, 2021At fair value through profit At fair value through other Totalor losscomprehensive incomeIn \u20ac million Equity instruments Equity instruments \ue61fJanuary 1 55 11 66Total gains or losses \ue61f \ue61f \ue61f- Recognized in profit or loss 1 \ue61f \ue61f- Recognized in other comprehensive income \ue61f 1 1Acquisitions 6 7 13Capital decreases 0 0 -1Transfers out of level 3 \ue61f -2 -2December 31 62 17 79",
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"value": "F32.C. Capital managementSee 2 Capital, shares and shareholders in respect of capital in the Corporate Governance statement chapter of this annual report.The Group manages its funding structure with the objective of safeguarding its ability to continue as a going concern, optimizing the return for shareholders, maintaining an investment-grade rating, and minimizing the cost of debt.\ue61fThe capital structure of the Group consists of equity (including perpetual hybrid bonds (see note F28 Equity) and of net debt (see note F33 Net indebtedness). Perpetual hybrid bonds are nevertheless considered as debt in the Group\u2019s Underlying metrics.\ue61fBesides the statutory minimum equity funding requirements that apply to the Company\u2019s subsidiaries in the different countries, Solvay is not subject to any additional legal capital requirements.\ue61fThe Treasury department reviews the capital structure on an ongoing basis under the authority and the supervision of the Chief Financial Officer. As appropriate, the Legal department is involved to ensure compliance with legal and contractual requirements.",
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"value": "F32.D. Financial risk managementThe Group is exposed to market risk from movements in foreign exchange rates, interest rates and other market prices (utility prices, CO emission 2rights prices and equity prices). The Group\u2019s senior management oversees the management of these risks and is supported by the Treasury department (non-commodity risks) and Solvay Sustainable Development and Energy department that advise on financial risks and the appropriate financial risk governance framework for the Group. Both departments provide assurance to the Group\u2019s senior management that the Group\u2019s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Group\u2019s policies and risk objectives. Solvay uses derivative financial instruments to hedge clearly identified foreign exchange, interest rate, index, utility price and CO emission rights price risks (hedging instruments). All derivative activities for risk management purposes are carried out by specialist teams that have 2the appropriate skills, experience and supervision. However, the required criteria to apply hedge accounting are not met in all cases.Furthermore, the Group is also exposed to liquidity risks and credit risks.Foreign currency risksThe Group is a multi-specialty chemical company with operations worldwide, and hence undertakes transactions denominated in foreign cur-rencies. Consequently, the Group is exposed to exchange rate \ufb02uctuations. In 2022, the Group was mainly exposed to US dollar, Chinese yuan, Brazilian real and Japanese yen. To mitigate its foreign currency risk, the Group has defined a hedging policy that is essentially based on the principles of financing its activities in local currency and hedges the transactional exchange risk at the time of invoicing (risk which is certain). The Group constantly monitors its ac-tivities in foreign currencies and hedges, where appropriate, the exchange rate exposures on expected cash \ufb02ows (risk which is highly probable). Exchange rate exposures are managed within approved policy parameters utilizing forward foreign exchange contracts or, when appropriate, other derivatives like currency options. In the course of 2022, the \u20ac/US$ exchange rate moved from 1.1326 at the start of January to 1.0674 at the end of December (from 1.2270 to 1.1326 in 2021). A \ufb02uctuation of (0.10) to the US$/\u20ac exchange rate, would generate in 2022 about \u20ac180 million (\u20ac120 million for 2021) variation to the EBITDA. 51% of this variation is at conversion level and 49% at transaction level, the latter being mostly hedged. EBITDA is the key non-IFRS metric for operational performance as defined in the glossary.At the end of 2022, a strengthening of the US dollar vs euro would increase the net debt by approximately \u20ac87 million (\u20ac79 million in 2021) per 0.10\ue61fUS$/\u20ac \ufb02uctuation. Conversely, a weakening of the US dollar vs euro would decrease the net debt by approximately \u20ac72 million (\u20ac66 million in 2021) per 0.10\ue61fUS$/\u20ac \ufb02uctuation.The Group\u2019s currency risk can be split into two categories: translation and transactional risk.Translation riskThe translation exchange risk is the risk affecting the Group\u2019s consolidated financial statements related to investees operating in a currency other than the EUR (the Group\u2019s presentation currency).\ue61fDuring 2022 and 2021, the Group did not hedge the currency risk of foreign operations.Transactional riskThe transactional risk is the exchange risk linked to a specific transaction, such as a Group entity buying or selling in a currency other than its functional currency.To the largest extent possible, the Group manages the transactional risk on receivables and borrowings centrally and locally when centralization is not possible.The choice of borrowing currency depends mainly on the opportunities offered by the various markets. This means that the selected currency is not necessarily that of the country in which the funds will be invested. Nonetheless, operating entities are financed essentially in their functional currencies.In emerging countries, it is not always possible to borrow in local currency, either because funds are not available in local financial markets, or because the financial conditions are too onerous. In such a situation, the Group has to borrow in a different currency. Nonetheless, the Group considers opportunities to refinance its borrowings in emerging countries with local currency debt.Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are classified into the two categories described below:Cash \ufb02ow hedgeThe Group uses derivatives to hedge identified foreign exchange rate risks. It documents those as hedging instruments unless it hedges a recognized financial asset or liability when generally no cash \ufb02ow hedge relationship is documented. Most hedges are transaction related.At the end of 2022, the Group had mainly hedged highly probable sales in foreign currencies (short position) in a nominal amount of US$ 839 million (\u20ac786 million) and JP\u00a5 15,902 million (\u20ac113 million). All cash \ufb02ow hedge contracts that exist at the end of December 2022 will be settled within the next 12 months, and will impact profit or loss during that period.The following table details the notional amounts of Solvay\u2019s derivatives contracts outstanding at the end of the period:NOTIONAL AMOUNTSDecember 31, 2022\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of of exposure exchange rate hedge hedging instrumentthe the risk expo-hedgedper risk categoryreserve (1) (1)instrumentsure\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets LiabilitiesCash \ufb02ow hedges - Forecasted sales and (3)purchasesJPY/EUR -71 -147 48% 139.17 0 1 1JPY/USD -42 -87 48% (2) 132.47 -1 1 2Total JPY -113 -234 -1 1 2USD/BRL -187 -285 66% (2) 5.28 3 3 0USD/CNY -157 -353 45% (2) 6.82 -1 1 2USD/EUR -340 -674 50% 1.05 8 10 2USD/MXN -66 -135 49% (2) 21.01 3 3 0USD/THB -36 -79 45% 34.69 1 1 0Total USD -786 -1,525 14 19 5Total -899 -1,759 13 20 7(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2023.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates.In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.December 31, 2021\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of the of exposure exchange rate hedge hedging instrument (1)the instru-risk exposurehedgedper risk categoryreserve (1)ment\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets Liabilities (3)Cash \ufb02ow hedges - Forecasted sales and purchases\ue61fJPY/EUR -45 -110 41% \ue61f 130.80 1(2)JPY/USD -31 -64 48%111.66 1 1Total JPY -76 -174 \ue61f \ue61f \ue61f 1 1(2)USD/BRL -146 -194 75%5.26(2)USD/CNY -122 -225 54%6.58 3 3USD/EUR -314 -634 50% \ue61f 1.18 12 12(2)USD/MXN -40 -89 45%21.73 2 2USD/THB -20 -44 45% \ue61f 32.51 1 1Total USD -642 -1,187 \ue61f \ue61f \ue61f 17 4 13Total -718 -1,361 \ue61f \ue61f \ue61f 18 5 13(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2022.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Interest rate risksSee the Financial risk in the Management of risks section of this annual report for additional information on the interest rate risks management.Interest rate risk is managed at Group level.The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and \ufb02oating interest rates. Interest rate risk is managed at Group level by maintaining an appropriate mix between fixed and \ufb02oating rate borrowings.Interest rate exposure by currency is summarized below:In \u20ac million December 31, 2022 December 31, 2021Currency Fixed rate Floating rate Total Fixed rate Floating rate TotalFinancial debt \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR -1,642 -32 -1,673 -1,923 -18 -1,941USD -1,153 -11 -1,163 -1,246 -23 -1,269BGN 0 -33 -33 0 -4 -5SAR 0 0 0 \ue61f -18 -18INR -11 -6 -17 -39 0 -39KRW -19 -7 -26 -21 -1 -22THB -12 0 -12 -11 0 -11BRL -12 0 -12 -9 -2 -11Other -22 -1 -23 -28 -4 -32Total -2,870 -90 -2,959 -3,277 -71 -3,349Cash and cash equivalents \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR \ue61f 201 201 \ue61f 206 206USD \ue61f 320 320 \ue61f 458 458CAD \ue61f 53 53 \ue61f 5 5THB \ue61f 28 28 \ue61f 36 36SAR \ue61f 11 11 \ue61f 15 15BRL \ue61f 177 177 \ue61f 53 53CNY \ue61f 22 22 \ue61f 35 35KRW \ue61f 7 7 \ue61f 7 7JPY \ue61f 30 30 \ue61f 33 33Other \ue61f 83 83 \ue61f 93 93Total \ue61f 932 932 \ue61f 941 941Other financial instruments \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fCNY \ue61f 43 43 \ue61f 70 70EUR \ue61f 185 185 \ue61f 160 160SAR \ue61f 4 4 \ue61f 21 21Other \ue61f 4 4 \ue61f 8 8Total \ue61f 236 236 \ue61f 259 259\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fTotal -2,870 1,078 -1,791 -3,277 1,128 -2,149At the end of 2022, approximately \u20ac2.87 billion of the Group\u2019s gross debt was at fixed-rate, and is largely comprised of: \u00b7 Senior EUR Bonds for a total of \u20ac1,100 million maturing in 2027 and 2029 (carrying amount of \u20ac1,094 million); \u00b7 Remaining portion (US$ 163 million) of the US$ Senior Bonds 2025 of US$ 250 million (carrying amount of \u20ac152 million); \u00b7 Senior US$ Bond for a total of US$ 800 million (carrying amount of \u20ac748 million); \u00b7 IFRS 16 lease liability for a total of \u20ac524 million (carrying amount of \u20ac524 million).The \ufb02oating rate debts that are subject to interest rate swaps are discussed below. The impact of interest rate volatility at the end of 2022 compared to 2021 is the following:Sensitivity to a + 100bp movement in Sensitivity to a - 100bp movement EUR market interest ratesin EUR market interest ratesIn \u20ac million 2022 2021 2022 2021Profit or loss -1 0 1 0The sensitivity to interest rates\u2019 volatility remains insignificant at the end of 2022 compared to 2021 as the \ufb02oating rate debt is very limited.Interest rate risk hedged by instrument accounted for as held for tradingIn \u20ac million Notional amount Fair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021Held for trading 0 18Total 0 18The notional amount reported in 2021 under \u201cheld for trading\u201d is mainly explained by a cross currency swap contracted in May 2017 and settled in the course of 2022 to mitigate the volatility (forex and interest rate) of the external financing set up for the Group\u2019s HPPO joint operation (Saudi Hydrogen Peroxide Company) 50/50 with Sadara in Saudi Arabia (notional amount \u20ac18 million corresponding to 50%). Other market risks\u2014 Utility and CO2 price risksThe Group purchases a large portion of its coal, gas and electricity needs in Europe and the United States based on \ufb02uctuating liquid market indices. Moreover, the Group purchases raw materials with a price formula referring to market indices (e.g. benzene). In order to reduce the cost volatility, the Group has developed a policy for exchanging variable price against fixed price through derivative financial instruments. Most of these hedging instruments can be documented as hedging instruments of the underlying purchase contracts. Utility purchase contracts at fixed price with a physical delivery for use in the Group's operations are qualified as own use contracts and constitute a natural hedge. Those have not been included in this note. Similarly, the Group's exposure to CO price is partially hedged by forward purchases of European Union Allowances (EUA). In 2021, forward purchases 2with physical delivery for use in the Group's operations were qualified as own use contracts (not derivatives). In 2022, in view of both increased volatility in energy and CO markets and the plan to separate Solvay SA into two independent groups, the Group reconsidered the conditions of the own use 2exemption. Accordingly the entire portfolio of CO emission rights forward purchases has been accounted for at the end of Q2 2022 in accordance with 2the general rules of IFRS\ue61f9, and a profit of \u20ac322 million has been classified as \u201cOther operating gains and losses\u201d. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.Finally, some exposure to gas, coal and electricity prices may arise from the production of electricity on Solvay sites (mostly from cogeneration units in Europe), which can be hedged by means of forward purchases and forward sales or optional schemes. In this case, cash \ufb02ow hedge accounting is applied.Financial hedging of utility and CO emission rights price risks is managed centrally by Energy Services on behalf of the Group entities.2Energy Services also carries out trading transactions with respect to utility and CO.2The following tables detail the notional principal amounts and fair values of utility and CO derivative financial instruments outstanding at the end of the 2reporting period:Held for trading Notional amount of Notional amount of the instrument Fair value of the Fair value of the (1)the instrument(in units)instrument - Assetinstrument - LiabilityDecember 31 2022 2021 2022 2021 2022 2021 2022 2021In \u20ac million (except where indicated)Coal \ue61f Tons \ue61fPower 922 1,189 7,318,874 21,005,859 MWh 307 764 -306 -781Standard Quality Gas 619 613 13,372,959 27,701,363 MWh 347 434 -282 -437CO10 11 707,550 206,294 Tons 21 4 -46 -52Total 1,550 1,813 \ue61f \ue61f 675 1,202 -634 -1,223(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.The amounts presented in the tables hereafter include hedging needs of the GBUs of the Group that are sourced through Energy Services, and not the full Group utility hedging needs.December 31, 2022\ue61fCash \ufb02ow Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair value Fair hedgeamount amount of tional amount tage of hedge \ufb02ow of the in-value of the the instru-amount of the risk expo-price hedge strument of the instru-ment (in of the exposure (in sure per risk re-- Assetinstru- (1) mentunits)risk ex-units)hedgedcatego-servement posurery- Lia-bilityIn \u20ac million (except where indicated)\ue61fBenzeneCoalEUR/Power 154 1,078,973 MWh 702 3,505,469 MWh 31% 13271 40 -111MWhStandard Quality EUR/330 13,525,810 MWh 1,650 34,722,420 MWh 39% 33-156 240 -84GasMWhCO2368 5,440,050 Tons 1,150 24,096,508 Tons 45% 61 EUR/Tons 152 142 -26Total 899 67 422 -221(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.December 31, 2021Cash \ufb02ow hedge Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair Fair amount amount of tional amount tage hedge \ufb02ow value value of the the instru-amount of the risk of ex-price hedge of the of the instru-ment (in of the exposure (in posure per risk re-instru-instru- (1) mentunits)risk ex-units)hedgedcatego-servement - ment - posureryAssetLiabilityIn \u20ac million (except where indicated)\ue61fBenzene 1 1,477 Tons 1 1,479 Tons 100% 556 EUR/tonCoal 17 243,000 Tons 62 702,041 Tons 35% 77 USD/ton 5 6 -1Power 154 2,506,335 MWh 607 3,591,600 MWh 70% 62 EUR/MWh -270 1 -271Standard Quality 254 13,648,389 MWh 954 24,096,508 MWh 57% 19 EUR/MWh 273 291 -18GasTotal 426 \ue61f \ue61f 1,625 \ue61f \ue61f \ue61f \ue61f \ue61f 8 298 -290(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates. \u00b7 In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.In the wake of the European energy crisis impacting gas consumption in several countries and due to the European Union's sanctions on the sourcing of gas and coal from Russia, the Group revised the expected activity of several of its cogeneration units in Europe in Q3 2022 with a view to both preserving business continuity and reducing gas consumption. These developments triggered the need to reassess the probability and conditions of future energy consumption at each site when updating the Cash Flow Hedge (CFH) documentation. As part of this reassessment, the Group identified certain hedges for which the underlying future energy purchases are no longer highly probable (but still expected to occur) or subject to modified purchasing conditions, resulting in those hedges ceasing to meet the qualifying criteria for CFH accounting during Q3 2022. The discontinuation of hedge accounting resulted in a favorable \u20ac39 million accumulated mark-to-market that will remain in Other Comprehensive Income with future recycling to the consolidated income statement as the underlying transactions occur (\u20ac18 million in 2022, \u20ac18 million in 2023).Fair value hedgeOn December 31, 2022, the Group covers a part of its CO emission rights in inventory by forward sales of CO emission rights to a related party. The 22Group qualifies this hedging strategy as Fair value hedge. The change in fair value of forward sales are accounted in profit and loss, concomitantly with the revaluation of the CO emission rights held in inventory.2The Group has established a 1:1 hedge ratio for the underlying risk of the forward sales of CO emission rights to the related party that is identical to the 2hedged risk component.\ue61fThe impact of the hedging instrument on the statement of financial position as at December 31, 2022 is, as follows:December 31, 2022Balance sheet Change in fair value used for Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets Liabilities\ue61f In Tons In \u20ac million In \u20ac million \ue61f In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f\ue61f\ue61f \ue61fHedgeCO emission Financial 286,500 1\ue61f-6\ue61f-6rights forwardsinstrumentDecember 31, 2022Balance sheet Change in fair value used for \ue61f Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets LiabilitiesIn Tons In \u20ac million In \u20ac million In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fHedgeCO emission 286,500 -1 7 \ue61f Inventories 6 \ue61frights forwardsThe sensitivities of commodity derivative financial instruments as of December 31, 2022 are presented below.The sensitivities were defined based on the price levels and volatility levels of each commodity. These assumptions do not constitute an estimation of future market prices and the sensitivities presented are not representative of future changes in Solvay's equity and results. \ue61fDecember 31, 2022Price change Other comprehensive income Profit or lossIn \u20ac millionNatural gas +10\u20ac/MWh -109 - Natural gas -10\u20ac/MWh 109 - Electricity +30\u20ac/MWh 32 1 Electricity -30\u20ac/MWh -32 -1CO Emission rights +5\u20ac/T 28 -2CO Emission rights -5\u20ac/T -28 -2Performance Share Units Plan (PSU) risk on Solvay share priceIn order to neutralize the volatility of the Solvay share price, which will impact the liability valuation relating to the cash settled PSU plans (with related employer charges), the Group entered into equity swaps covering approximately 100% of the risk. In 2022, a liability of \u20ac39 million, recognized for 2020 and 2021 PSU plans (in 2021, \u20ac24 million for the 2020 and 2021 PSU plans) corresponds to the best estimate of the amount due at maturity.Credit riskSee the Financial risk in the Management of risks section of this annual report for additional information on credit risk management. The Group continuously monitors the credit risk of important business partners. The Group engages in transactions only with financial institutions with a good credit rating. The Group monitors and manages exposures to financial institutions within approved counterparty credit limits and credit risk parameters in order to mitigate the risk of default. For financial guarantees, see note F36 Contingent assets, liabilities and financial guarantees.The Group recognizes expected credit losses on all of its trade receivables: it applies the simplified approach and recognizes lifetime expected losses on all trade receivables, using a provision matrix in order to calculate the lifetime expected credit losses for trade receivables, using historical information on defaults adjusted for the forward-looking information. The Group classifies the customers and their related receivables in various rating classes, based on the risks\u2019 grading attributed to the customers and on the aging balance of receivables. As such, for all receivables overdue below six months, the Group considers percentages within a range between 0.005% and 4.204%, depending on the rating class. For all receivables overdue in excess of six months, the Group considers a rate of 50% or of 100%, depending on the rating class. The customer\u2019s grading is reviewed annually for customers assessed as low risk profile, and every six months for customers assessed as higher risk profile. There is no significant concentration of credit risk at Group level because the receivables\u2019 credit risk is spread over a large number of customers and markets.The ageing of trade receivables, financial instruments - operational, loans and other non-current assets is as follows:\ue61f \ue61f With expected loss allowance, not credit-impairedDecember 31, 2022In \u20ac millionTotal Credit-not past less than between 30 between 60 and more than 90 impaireddue30 days and 60 days 90 days past duedays past duepast duepast dueTrade receivables 2,098 68 1,986 33 6 1 3Trade receivables - allowance -72 -67 -2 0 \ue61f \ue61f -2Trade receivables - net 2,026 1 1,984 33 6 1 1Financial instruments - 1,125 \ue61f 1,125 \ue61f \ue61f \ue61f \ue61foperationalLoans and other non-current assets 312 12 300 0 \ue61f \ue61f \ue61fLoans and other non-current assets -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61f- allowanceLoans and other non-current 301 0 300 0 0 0 0assets - netTotal 3,452 1 3,410 33 6 1 1The Loans and other non-currents assets do not include the long-term inventory balance.December 31, 2021\ue61f With expected loss allowance, not credit-impairedIn \u20ac millionTotal Credit-im-not past less than between 30 between 60 more than paireddue30 days and 60 days and 90 days 90 days past duepast duepast duepast dueTrade receivables 1,857 50 1,765 36 2 1 3Trade receivables - allowance -51 -49 -2 \ue61f \ue61f \ue61f -1Trade receivables - net 1,805 2 1,763 36 2 1 2Financial instruments - operational 1,513 \ue61f 1,513 \ue61f \ue61f \ue61f \ue61fLoans and other non-current assets 511 11 500 0 \ue61f \ue61f \ue61fLoans and other non-current assets - -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61fallowanceLoans and other non-current assets 500 0 500 0 0 0 0- netTotal 3,818 2 3,776 36 2 1 2The table below presents the allowances on trade receivables:In \u20ac million2022 2021January 1 -51 -39Additions -22 -19Uses 2 5Reversal 1 2Currency translation differences -2 0December 31 -72 -51Liquidity riskSee the Financial risk in the Management of risks section of this annual report for additional information on the liquidity risk management.Liquidity risk relates to Solvay\u2019s ability to service and refinance its debt (including notes issued) and to fund its operations.This depends on its ability to generate cash from operations and not to overpay for acquisitions.The Finance Committee gives its opinion on the appropriate liquidity risk management for the Group\u2019s short, medium and long term funding and liquidity management requirements.The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash \ufb02ows, and by matching the maturity profiles of financial assets and liabilities.The Group staggers the maturities of its financing sources over time in order to limit amounts to be refinanced each year.The following tables detail the Group\u2019s remaining contractual maturity for its financial liabilities with contractual repayment periods.\ue61fThe tables have been prepared using the discounted cash \ufb02ows of financial liabilities, based on the earliest date on which the Group can be required to pay. The following tables present discounted amounts (carrying amounts):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,435 399 10 1,423 604Leasing debt 524 111 90 160 164Total 6,386 3,646 178 1,781 782In \u20ac million December 31, 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,844 676 187 873 1,108Leasing debt 505 97 70 159 179Total 7,320 4,413 292 1,278 1,336The following tables present undiscounted amounts (nominal value):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,444 399 9 1,428 608Leasing debt 524 111 90 160 164Total 6,395 3,646 178 1,786 785Interests on financial debt and lease liabilities 321 78 73 122 48Total out\ufb02ows of cash 6,717 3,724 251 1,908 833\u20ac million 31 December 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,856 677 188 877 1,115Leasing debt 505 97 70 159 179Total 7,333 4,414 293 1,282 1,343Interests on financial debt and lease liabilities 379 86 74 158 62Total out\ufb02ows of cash 7,712 4,500 367 1,439 1,405Trade payables include \u20ac172 million (2021: \u20ac198 million) due to suppliers that have signed up for a supply chain financing program, under which the suppliers can elect to receive a discounted early payment from the partner bank rather than being paid in line with the agreed payment terms. If the option is taken, the Group\u2019s liability is assigned by the supplier to the partner bank. The value of the Group's liability remains unchanged. The Group assesses each arrangement against indicators to determine if the liabilities which suppliers have sold to the partner bank under the supplier financing scheme continue to meet the definition of trade payables or should be classified as financial debt. On December 31, 2022 and 2021, the liabilities met the criteria of Trade Payables.Solvay\u2019s liquidity amounts to \u20ac6.7 billion including \u20ac932 million of cash and cash equivalents on the statement of financial position and \u20ac\ue61f5.8 billion of committed fully undrawn credit facilities (\u20ac2.9 billion term loan in the context of the separation plan, \u20ac2 billion multilateral RCF due 2024, and \u20ac0.9 billion bilateral RCF, largely multi-year) unused at the end of December 2022.In addition, Solvay has access to a Belgian Treasury Bill program for \u20ac1.5 billion and, alternatively, to a US commercial paper for US$ 500 million (no outstanding balance for both on December 31, 2022). The two programs are covered by back-up credit lines.\ue61f",
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"value": "Foreign currency risksThe Group is a multi-specialty chemical company with operations worldwide, and hence undertakes transactions denominated in foreign cur-rencies. Consequently, the Group is exposed to exchange rate \ufb02uctuations. In 2022, the Group was mainly exposed to US dollar, Chinese yuan, Brazilian real and Japanese yen. To mitigate its foreign currency risk, the Group has defined a hedging policy that is essentially based on the principles of financing its activities in local currency and hedges the transactional exchange risk at the time of invoicing (risk which is certain). The Group constantly monitors its ac-tivities in foreign currencies and hedges, where appropriate, the exchange rate exposures on expected cash \ufb02ows (risk which is highly probable). Exchange rate exposures are managed within approved policy parameters utilizing forward foreign exchange contracts or, when appropriate, other derivatives like currency options. In the course of 2022, the \u20ac/US$ exchange rate moved from 1.1326 at the start of January to 1.0674 at the end of December (from 1.2270 to 1.1326 in 2021). A \ufb02uctuation of (0.10) to the US$/\u20ac exchange rate, would generate in 2022 about \u20ac180 million (\u20ac120 million for 2021) variation to the EBITDA. 51% of this variation is at conversion level and 49% at transaction level, the latter being mostly hedged. EBITDA is the key non-IFRS metric for operational performance as defined in the glossary.At the end of 2022, a strengthening of the US dollar vs euro would increase the net debt by approximately \u20ac87 million (\u20ac79 million in 2021) per 0.10\ue61fUS$/\u20ac \ufb02uctuation. Conversely, a weakening of the US dollar vs euro would decrease the net debt by approximately \u20ac72 million (\u20ac66 million in 2021) per 0.10\ue61fUS$/\u20ac \ufb02uctuation.The Group\u2019s currency risk can be split into two categories: translation and transactional risk.Translation riskThe translation exchange risk is the risk affecting the Group\u2019s consolidated financial statements related to investees operating in a currency other than the EUR (the Group\u2019s presentation currency).\ue61fDuring 2022 and 2021, the Group did not hedge the currency risk of foreign operations.Transactional riskThe transactional risk is the exchange risk linked to a specific transaction, such as a Group entity buying or selling in a currency other than its functional currency.To the largest extent possible, the Group manages the transactional risk on receivables and borrowings centrally and locally when centralization is not possible.The choice of borrowing currency depends mainly on the opportunities offered by the various markets. This means that the selected currency is not necessarily that of the country in which the funds will be invested. Nonetheless, operating entities are financed essentially in their functional currencies.In emerging countries, it is not always possible to borrow in local currency, either because funds are not available in local financial markets, or because the financial conditions are too onerous. In such a situation, the Group has to borrow in a different currency. Nonetheless, the Group considers opportunities to refinance its borrowings in emerging countries with local currency debt.Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are classified into the two categories described below:Held for tradingThe transactional risk is managed either by spot or forward contracts. Unless documented as hedging instruments (see above), derivative financial instruments are classified as held for trading.In 2022, the notional amounts transacted to manage the transactional risk are: \u00b7 a short position of \u20ac(666) million (compared to \u20ac(660) million in 2021); \u00b7 a long position of \u20ac343 million (compared to \u20ac605 million in 2021).\ue61fIn 2021, the long position was explained by the need to convert US$ into \u20ac for the early repayment of \u20ac372.5 million on the \u20ac750 million senior bond in December 2021.The following table details the notional amounts of the Group\u2019s derivatives contracts outstanding at the end of the period: (1)In \u20ac million Notional amountFair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021 Held for trading long position 343 605 1 3 -1 -2Held for trading short position -666 -660 4 4 -2 -2Total -323 -55 5 7 -3 -4(1) Long/(short) positions (if the foreign exchange transaction does not involve the functional currency, both notional amounts are considered). Cash \ufb02ow hedgeThe Group uses derivatives to hedge identified foreign exchange rate risks. It documents those as hedging instruments unless it hedges a recognized financial asset or liability when generally no cash \ufb02ow hedge relationship is documented. Most hedges are transaction related.At the end of 2022, the Group had mainly hedged highly probable sales in foreign currencies (short position) in a nominal amount of US$ 839 million (\u20ac786 million) and JP\u00a5 15,902 million (\u20ac113 million). All cash \ufb02ow hedge contracts that exist at the end of December 2022 will be settled within the next 12 months, and will impact profit or loss during that period.The following table details the notional amounts of Solvay\u2019s derivatives contracts outstanding at the end of the period:NOTIONAL AMOUNTSDecember 31, 2022\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of of exposure exchange rate hedge hedging instrumentthe the risk expo-hedgedper risk categoryreserve (1) (1)instrumentsure\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets LiabilitiesCash \ufb02ow hedges - Forecasted sales and (3)purchasesJPY/EUR -71 -147 48% 139.17 0 1 1JPY/USD -42 -87 48% (2) 132.47 -1 1 2Total JPY -113 -234 -1 1 2USD/BRL -187 -285 66% (2) 5.28 3 3 0USD/CNY -157 -353 45% (2) 6.82 -1 1 2USD/EUR -340 -674 50% 1.05 8 10 2USD/MXN -66 -135 49% (2) 21.01 3 3 0USD/THB -36 -79 45% 34.69 1 1 0Total USD -786 -1,525 14 19 5Total -899 -1,759 13 20 7(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2023.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates.In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.December 31, 2021\ue61fIn \u20ac millionNotional Notional Percentage Average hedge Cash \ufb02ow Fair value of the amount of amount of the of exposure exchange rate hedge hedging instrument (1)the instru-risk exposurehedgedper risk categoryreserve (1)ment\ue61f \ue61f \ue61f \ue61f \ue61f Equity Assets Liabilities (3)Cash \ufb02ow hedges - Forecasted sales and purchases\ue61fJPY/EUR -45 -110 41% \ue61f 130.80 1(2)JPY/USD -31 -64 48%111.66 1 1Total JPY -76 -174 \ue61f \ue61f \ue61f 1 1(2)USD/BRL -146 -194 75%5.26(2)USD/CNY -122 -225 54%6.58 3 3USD/EUR -314 -634 50% \ue61f 1.18 12 12(2)USD/MXN -40 -89 45%21.73 2 2USD/THB -20 -44 45% \ue61f 32.51 1 1Total USD -642 -1,187 \ue61f \ue61f \ue61f 17 4 13Total -718 -1,361 \ue61f \ue61f \ue61f 18 5 13(1) Long/(short) positions.(2) In compliance with Group Treasury Policy the percentage of hedged exposure will reach the progressive minimum compliance level of 60% in 2022.(3) The Hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the statement of financial position.Interest rate risksSee the Financial risk in the Management of risks section of this annual report for additional information on the interest rate risks management.Interest rate risk is managed at Group level.The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and \ufb02oating interest rates. Interest rate risk is managed at Group level by maintaining an appropriate mix between fixed and \ufb02oating rate borrowings.Interest rate exposure by currency is summarized below:In \u20ac million December 31, 2022 December 31, 2021Currency Fixed rate Floating rate Total Fixed rate Floating rate TotalFinancial debt \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR -1,642 -32 -1,673 -1,923 -18 -1,941USD -1,153 -11 -1,163 -1,246 -23 -1,269BGN 0 -33 -33 0 -4 -5SAR 0 0 0 \ue61f -18 -18INR -11 -6 -17 -39 0 -39KRW -19 -7 -26 -21 -1 -22THB -12 0 -12 -11 0 -11BRL -12 0 -12 -9 -2 -11Other -22 -1 -23 -28 -4 -32Total -2,870 -90 -2,959 -3,277 -71 -3,349Cash and cash equivalents \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fEUR \ue61f 201 201 \ue61f 206 206USD \ue61f 320 320 \ue61f 458 458CAD \ue61f 53 53 \ue61f 5 5THB \ue61f 28 28 \ue61f 36 36SAR \ue61f 11 11 \ue61f 15 15BRL \ue61f 177 177 \ue61f 53 53CNY \ue61f 22 22 \ue61f 35 35KRW \ue61f 7 7 \ue61f 7 7JPY \ue61f 30 30 \ue61f 33 33Other \ue61f 83 83 \ue61f 93 93Total \ue61f 932 932 \ue61f 941 941Other financial instruments \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fCNY \ue61f 43 43 \ue61f 70 70EUR \ue61f 185 185 \ue61f 160 160SAR \ue61f 4 4 \ue61f 21 21Other \ue61f 4 4 \ue61f 8 8Total \ue61f 236 236 \ue61f 259 259\ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fTotal -2,870 1,078 -1,791 -3,277 1,128 -2,149At the end of 2022, approximately \u20ac2.87 billion of the Group\u2019s gross debt was at fixed-rate, and is largely comprised of: \u00b7 Senior EUR Bonds for a total of \u20ac1,100 million maturing in 2027 and 2029 (carrying amount of \u20ac1,094 million); \u00b7 Remaining portion (US$ 163 million) of the US$ Senior Bonds 2025 of US$ 250 million (carrying amount of \u20ac152 million); \u00b7 Senior US$ Bond for a total of US$ 800 million (carrying amount of \u20ac748 million); \u00b7 IFRS 16 lease liability for a total of \u20ac524 million (carrying amount of \u20ac524 million).The \ufb02oating rate debts that are subject to interest rate swaps are discussed below. The impact of interest rate volatility at the end of 2022 compared to 2021 is the following:Sensitivity to a + 100bp movement in Sensitivity to a - 100bp movement EUR market interest ratesin EUR market interest ratesIn \u20ac million 2022 2021 2022 2021Profit or loss -1 0 1 0The sensitivity to interest rates\u2019 volatility remains insignificant at the end of 2022 compared to 2021 as the \ufb02oating rate debt is very limited.Interest rate risk hedged by instrument accounted for as held for tradingIn \u20ac million Notional amount Fair value assets Fair value liabilitiesDecember 31 2022 2021 2022 2021 2022 2021Held for trading 0 18Total 0 18The notional amount reported in 2021 under \u201cheld for trading\u201d is mainly explained by a cross currency swap contracted in May 2017 and settled in the course of 2022 to mitigate the volatility (forex and interest rate) of the external financing set up for the Group\u2019s HPPO joint operation (Saudi Hydrogen Peroxide Company) 50/50 with Sadara in Saudi Arabia (notional amount \u20ac18 million corresponding to 50%). Other market risks\u2014 Utility and CO2 price risksThe Group purchases a large portion of its coal, gas and electricity needs in Europe and the United States based on \ufb02uctuating liquid market indices. Moreover, the Group purchases raw materials with a price formula referring to market indices (e.g. benzene). In order to reduce the cost volatility, the Group has developed a policy for exchanging variable price against fixed price through derivative financial instruments. Most of these hedging instruments can be documented as hedging instruments of the underlying purchase contracts. Utility purchase contracts at fixed price with a physical delivery for use in the Group's operations are qualified as own use contracts and constitute a natural hedge. Those have not been included in this note. Similarly, the Group's exposure to CO price is partially hedged by forward purchases of European Union Allowances (EUA). In 2021, forward purchases 2with physical delivery for use in the Group's operations were qualified as own use contracts (not derivatives). In 2022, in view of both increased volatility in energy and CO markets and the plan to separate Solvay SA into two independent groups, the Group reconsidered the conditions of the own use 2exemption. Accordingly the entire portfolio of CO emission rights forward purchases has been accounted for at the end of Q2 2022 in accordance with 2the general rules of IFRS\ue61f9, and a profit of \u20ac322 million has been classified as \u201cOther operating gains and losses\u201d. Subsequently, on July 1, 2022, the related portfolio has been designated as hedging instruments in a cash \ufb02ow hedge relationship.Finally, some exposure to gas, coal and electricity prices may arise from the production of electricity on Solvay sites (mostly from cogeneration units in Europe), which can be hedged by means of forward purchases and forward sales or optional schemes. In this case, cash \ufb02ow hedge accounting is applied.Financial hedging of utility and CO emission rights price risks is managed centrally by Energy Services on behalf of the Group entities.2Energy Services also carries out trading transactions with respect to utility and CO.2The following tables detail the notional principal amounts and fair values of utility and CO derivative financial instruments outstanding at the end of the 2reporting period:Held for trading Notional amount of Notional amount of the instrument Fair value of the Fair value of the (1)the instrument(in units)instrument - Assetinstrument - LiabilityDecember 31 2022 2021 2022 2021 2022 2021 2022 2021In \u20ac million (except where indicated)Coal \ue61f Tons \ue61fPower 922 1,189 7,318,874 21,005,859 MWh 307 764 -306 -781Standard Quality Gas 619 613 13,372,959 27,701,363 MWh 347 434 -282 -437CO10 11 707,550 206,294 Tons 21 4 -46 -52Total 1,550 1,813 \ue61f \ue61f 675 1,202 -634 -1,223(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.The amounts presented in the tables hereafter include hedging needs of the GBUs of the Group that are sourced through Energy Services, and not the full Group utility hedging needs.December 31, 2022\ue61fCash \ufb02ow Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair value Fair hedgeamount amount of tional amount tage of hedge \ufb02ow of the in-value of the the instru-amount of the risk expo-price hedge strument of the instru-ment (in of the exposure (in sure per risk re-- Assetinstru- (1) mentunits)risk ex-units)hedgedcatego-servement posurery- Lia-bilityIn \u20ac million (except where indicated)\ue61fBenzeneCoalEUR/Power 154 1,078,973 MWh 702 3,505,469 MWh 31% 13271 40 -111MWhStandard Quality EUR/330 13,525,810 MWh 1,650 34,722,420 MWh 39% 33-156 240 -84GasMWhCO2368 5,440,050 Tons 1,150 24,096,508 Tons 45% 61 EUR/Tons 152 142 -26Total 899 67 422 -221(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.December 31, 2021Cash \ufb02ow hedge Notional Notional \ue61f No-Notional \ue61f Percen-Average \ue61f Cash Fair Fair amount amount of tional amount tage hedge \ufb02ow value value of the the instru-amount of the risk of ex-price hedge of the of the instru-ment (in of the exposure (in posure per risk re-instru-instru- (1) mentunits)risk ex-units)hedgedcatego-servement - ment - posureryAssetLiabilityIn \u20ac million (except where indicated)\ue61fBenzene 1 1,477 Tons 1 1,479 Tons 100% 556 EUR/tonCoal 17 243,000 Tons 62 702,041 Tons 35% 77 USD/ton 5 6 -1Power 154 2,506,335 MWh 607 3,591,600 MWh 70% 62 EUR/MWh -270 1 -271Standard Quality 254 13,648,389 MWh 954 24,096,508 MWh 57% 19 EUR/MWh 273 291 -18GasTotal 426 \ue61f \ue61f 1,625 \ue61f \ue61f \ue61f \ue61f \ue61f 8 298 -290(1) The hedging instruments are located in the line item: \"Other Receivables\" and \"Other Liabilities\" in the consolidated statement of financial position.Hedge relationships are seldom perfect. Therefore, ineffectiveness could\ue61f arise with the result that changes in the fair value or cash \ufb02ows of the hedged item that are attributable to a hedged risk and the hedging instrument do not offset within a period. The sources of hedge ineffectiveness\ue61fthat could potentially affect the hedging relationship during its term are listed below: \u00b7 A reduction in the amount of the forecast sales resulting in quantity or notional amount differences \u2013 the hedged item and hedging instrument are based on different quantities or notional amounts. \u00b7 A significant change in the credit risk of\ue61fparties. \u00b7 Timing differences \u2013 the hedged item and hedging instrument occur or are settled at different dates. \u00b7 In 2022, no hedge ineffectiveness was recognized in the consolidated income statement.In the wake of the European energy crisis impacting gas consumption in several countries and due to the European Union's sanctions on the sourcing of gas and coal from Russia, the Group revised the expected activity of several of its cogeneration units in Europe in Q3 2022 with a view to both preserving business continuity and reducing gas consumption. These developments triggered the need to reassess the probability and conditions of future energy consumption at each site when updating the Cash Flow Hedge (CFH) documentation. As part of this reassessment, the Group identified certain hedges for which the underlying future energy purchases are no longer highly probable (but still expected to occur) or subject to modified purchasing conditions, resulting in those hedges ceasing to meet the qualifying criteria for CFH accounting during Q3 2022. The discontinuation of hedge accounting resulted in a favorable \u20ac39 million accumulated mark-to-market that will remain in Other Comprehensive Income with future recycling to the consolidated income statement as the underlying transactions occur (\u20ac18 million in 2022, \u20ac18 million in 2023).Fair value hedgeOn December 31, 2022, the Group covers a part of its CO emission rights in inventory by forward sales of CO emission rights to a related party. The 22Group qualifies this hedging strategy as Fair value hedge. The change in fair value of forward sales are accounted in profit and loss, concomitantly with the revaluation of the CO emission rights held in inventory.2The Group has established a 1:1 hedge ratio for the underlying risk of the forward sales of CO emission rights to the related party that is identical to the 2hedged risk component.\ue61fThe impact of the hedging instrument on the statement of financial position as at December 31, 2022 is, as follows:December 31, 2022Balance sheet Change in fair value used for Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets Liabilities\ue61f In Tons In \u20ac million In \u20ac million \ue61f In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f\ue61f\ue61f \ue61fHedgeCO emission Financial 286,500 1\ue61f-6\ue61f-6rights forwardsinstrumentDecember 31, 2022Balance sheet Change in fair value used for \ue61f Carrying amountline item (s)calculating hedge ineffectiveness\ue61f Notional Assets Liabilities \ue61f Assets LiabilitiesIn Tons In \u20ac million In \u20ac million In \u20ac millionFair Value \ue61f \ue61f \ue61f \ue61f \ue61f \ue61f \ue61fHedgeCO emission 286,500 -1 7 \ue61f Inventories 6 \ue61frights forwardsThe sensitivities of commodity derivative financial instruments as of December 31, 2022 are presented below.The sensitivities were defined based on the price levels and volatility levels of each commodity. These assumptions do not constitute an estimation of future market prices and the sensitivities presented are not representative of future changes in Solvay's equity and results. \ue61fDecember 31, 2022Price change Other comprehensive income Profit or lossIn \u20ac millionNatural gas +10\u20ac/MWh -109 - Natural gas -10\u20ac/MWh 109 - Electricity +30\u20ac/MWh 32 1 Electricity -30\u20ac/MWh -32 -1CO Emission rights +5\u20ac/T 28 -2CO Emission rights -5\u20ac/T -28 -2Performance Share Units Plan (PSU) risk on Solvay share priceIn order to neutralize the volatility of the Solvay share price, which will impact the liability valuation relating to the cash settled PSU plans (with related employer charges), the Group entered into equity swaps covering approximately 100% of the risk. In 2022, a liability of \u20ac39 million, recognized for 2020 and 2021 PSU plans (in 2021, \u20ac24 million for the 2020 and 2021 PSU plans) corresponds to the best estimate of the amount due at maturity.",
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"value": "Credit riskSee the Financial risk in the Management of risks section of this annual report for additional information on credit risk management. The Group continuously monitors the credit risk of important business partners. The Group engages in transactions only with financial institutions with a good credit rating. The Group monitors and manages exposures to financial institutions within approved counterparty credit limits and credit risk parameters in order to mitigate the risk of default. For financial guarantees, see note F36 Contingent assets, liabilities and financial guarantees.The Group recognizes expected credit losses on all of its trade receivables: it applies the simplified approach and recognizes lifetime expected losses on all trade receivables, using a provision matrix in order to calculate the lifetime expected credit losses for trade receivables, using historical information on defaults adjusted for the forward-looking information. The Group classifies the customers and their related receivables in various rating classes, based on the risks\u2019 grading attributed to the customers and on the aging balance of receivables. As such, for all receivables overdue below six months, the Group considers percentages within a range between 0.005% and 4.204%, depending on the rating class. For all receivables overdue in excess of six months, the Group considers a rate of 50% or of 100%, depending on the rating class. The customer\u2019s grading is reviewed annually for customers assessed as low risk profile, and every six months for customers assessed as higher risk profile. There is no significant concentration of credit risk at Group level because the receivables\u2019 credit risk is spread over a large number of customers and markets.The ageing of trade receivables, financial instruments - operational, loans and other non-current assets is as follows:\ue61f \ue61f With expected loss allowance, not credit-impairedDecember 31, 2022In \u20ac millionTotal Credit-not past less than between 30 between 60 and more than 90 impaireddue30 days and 60 days 90 days past duedays past duepast duepast dueTrade receivables 2,098 68 1,986 33 6 1 3Trade receivables - allowance -72 -67 -2 0 \ue61f \ue61f -2Trade receivables - net 2,026 1 1,984 33 6 1 1Financial instruments - 1,125 \ue61f 1,125 \ue61f \ue61f \ue61f \ue61foperationalLoans and other non-current assets 312 12 300 0 \ue61f \ue61f \ue61fLoans and other non-current assets -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61f- allowanceLoans and other non-current 301 0 300 0 0 0 0assets - netTotal 3,452 1 3,410 33 6 1 1The Loans and other non-currents assets do not include the long-term inventory balance.December 31, 2021\ue61f With expected loss allowance, not credit-impairedIn \u20ac millionTotal Credit-im-not past less than between 30 between 60 more than paireddue30 days and 60 days and 90 days 90 days past duepast duepast duepast dueTrade receivables 1,857 50 1,765 36 2 1 3Trade receivables - allowance -51 -49 -2 \ue61f \ue61f \ue61f -1Trade receivables - net 1,805 2 1,763 36 2 1 2Financial instruments - operational 1,513 \ue61f 1,513 \ue61f \ue61f \ue61f \ue61fLoans and other non-current assets 511 11 500 0 \ue61f \ue61f \ue61fLoans and other non-current assets - -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61fallowanceLoans and other non-current assets 500 0 500 0 0 0 0- netTotal 3,818 2 3,776 36 2 1 2The table below presents the allowances on trade receivables:In \u20ac million2022 2021January 1 -51 -39Additions -22 -19Uses 2 5Reversal 1 2Currency translation differences -2 0December 31 -72 -51",
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"value": "Credit riskSee the Financial risk in the Management of risks section of this annual report for additional information on credit risk management. The Group continuously monitors the credit risk of important business partners. The Group engages in transactions only with financial institutions with a good credit rating. The Group monitors and manages exposures to financial institutions within approved counterparty credit limits and credit risk parameters in order to mitigate the risk of default. For financial guarantees, see note F36 Contingent assets, liabilities and financial guarantees.The Group recognizes expected credit losses on all of its trade receivables: it applies the simplified approach and recognizes lifetime expected losses on all trade receivables, using a provision matrix in order to calculate the lifetime expected credit losses for trade receivables, using historical information on defaults adjusted for the forward-looking information. The Group classifies the customers and their related receivables in various rating classes, based on the risks\u2019 grading attributed to the customers and on the aging balance of receivables. As such, for all receivables overdue below six months, the Group considers percentages within a range between 0.005% and 4.204%, depending on the rating class. For all receivables overdue in excess of six months, the Group considers a rate of 50% or of 100%, depending on the rating class. The customer\u2019s grading is reviewed annually for customers assessed as low risk profile, and every six months for customers assessed as higher risk profile. There is no significant concentration of credit risk at Group level because the receivables\u2019 credit risk is spread over a large number of customers and markets.The ageing of trade receivables, financial instruments - operational, loans and other non-current assets is as follows:\ue61f \ue61f With expected loss allowance, not credit-impairedDecember 31, 2022In \u20ac millionTotal Credit-not past less than between 30 between 60 and more than 90 impaireddue30 days and 60 days 90 days past duedays past duepast duepast dueTrade receivables 2,098 68 1,986 33 6 1 3Trade receivables - allowance -72 -67 -2 0 \ue61f \ue61f -2Trade receivables - net 2,026 1 1,984 33 6 1 1Financial instruments - 1,125 \ue61f 1,125 \ue61f \ue61f \ue61f \ue61foperationalLoans and other non-current assets 312 12 300 0 \ue61f \ue61f \ue61fLoans and other non-current assets -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61f- allowanceLoans and other non-current 301 0 300 0 0 0 0assets - netTotal 3,452 1 3,410 33 6 1 1The Loans and other non-currents assets do not include the long-term inventory balance.December 31, 2021\ue61f With expected loss allowance, not credit-impairedIn \u20ac millionTotal Credit-im-not past less than between 30 between 60 more than paireddue30 days and 60 days and 90 days 90 days past duepast duepast duepast dueTrade receivables 1,857 50 1,765 36 2 1 3Trade receivables - allowance -51 -49 -2 \ue61f \ue61f \ue61f -1Trade receivables - net 1,805 2 1,763 36 2 1 2Financial instruments - operational 1,513 \ue61f 1,513 \ue61f \ue61f \ue61f \ue61fLoans and other non-current assets 511 11 500 0 \ue61f \ue61f \ue61fLoans and other non-current assets - -11 -11 \ue61f \ue61f \ue61f \ue61f \ue61fallowanceLoans and other non-current assets 500 0 500 0 0 0 0- netTotal 3,818 2 3,776 36 2 1 2The table below presents the allowances on trade receivables:In \u20ac million2022 2021January 1 -51 -39Additions -22 -19Uses 2 5Reversal 1 2Currency translation differences -2 0December 31 -72 -51",
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"pp-value-232-8": {
"value": "Liquidity riskSee the Financial risk in the Management of risks section of this annual report for additional information on the liquidity risk management.Liquidity risk relates to Solvay\u2019s ability to service and refinance its debt (including notes issued) and to fund its operations.This depends on its ability to generate cash from operations and not to overpay for acquisitions.The Finance Committee gives its opinion on the appropriate liquidity risk management for the Group\u2019s short, medium and long term funding and liquidity management requirements.The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecasts and actual cash \ufb02ows, and by matching the maturity profiles of financial assets and liabilities.The Group staggers the maturities of its financing sources over time in order to limit amounts to be refinanced each year.The following tables detail the Group\u2019s remaining contractual maturity for its financial liabilities with contractual repayment periods.\ue61fThe tables have been prepared using the discounted cash \ufb02ows of financial liabilities, based on the earliest date on which the Group can be required to pay. The following tables present discounted amounts (carrying amounts):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,435 399 10 1,423 604Leasing debt 524 111 90 160 164Total 6,386 3,646 178 1,781 782In \u20ac million December 31, 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,844 676 187 873 1,108Leasing debt 505 97 70 159 179Total 7,320 4,413 292 1,278 1,336The following tables present undiscounted amounts (nominal value):In \u20ac million December 31, 2022Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,296 2,296 \ue61f \ue61f \ue61fDividends payables 165 165 \ue61f \ue61f \ue61fFinancial instruments - operational 867 675 \ue61f20 172 \ue61fOther non-current liabilities 99 \ue61f 59 26 14Financial debt 2,444 399 9 1,428 608Leasing debt 524 111 90 160 164Total 6,395 3,646 178 1,786 785Interests on financial debt and lease liabilities 321 78 73 122 48Total out\ufb02ows of cash 6,717 3,724 251 1,908 833\u20ac million 31 December 2021Out\ufb02ows of cash Total Within one year In year two In years three to five Beyond five years Trade payables 2,131 2,131 \ue61f \ue61f \ue61fDividends payables 160 160 \ue61f \ue61f \ue61fFinancial instruments - operational 1,528 1,350 10 168 \ue61fOther non-current liabilities 153 \ue61f 25 78 49Financial debt 2,856 677 188 877 1,115Leasing debt 505 97 70 159 179Total 7,333 4,414 293 1,282 1,343Interests on financial debt and lease liabilities 379 86 74 158 62Total out\ufb02ows of cash 7,712 4,500 367 1,439 1,405Trade payables include \u20ac172 million (2021: \u20ac198 million) due to suppliers that have signed up for a supply chain financing program, under which the suppliers can elect to receive a discounted early payment from the partner bank rather than being paid in line with the agreed payment terms. If the option is taken, the Group\u2019s liability is assigned by the supplier to the partner bank. The value of the Group's liability remains unchanged. The Group assesses each arrangement against indicators to determine if the liabilities which suppliers have sold to the partner bank under the supplier financing scheme continue to meet the definition of trade payables or should be classified as financial debt. On December 31, 2022 and 2021, the liabilities met the criteria of Trade Payables.Solvay\u2019s liquidity amounts to \u20ac6.7 billion including \u20ac932 million of cash and cash equivalents on the statement of financial position and \u20ac\ue61f5.8 billion of committed fully undrawn credit facilities (\u20ac2.9 billion term loan in the context of the separation plan, \u20ac2 billion multilateral RCF due 2024, and \u20ac0.9 billion bilateral RCF, largely multi-year) unused at the end of December 2022.In addition, Solvay has access to a Belgian Treasury Bill program for \u20ac1.5 billion and, alternatively, to a US commercial paper for US$ 500 million (no outstanding balance for both on December 31, 2022). The two programs are covered by back-up credit lines.\ue61f",
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"value": "NOTE\ue61fF33NET INDEBTEDNESSThe Group\u2019s net indebtedness is the balance between its financial debts and other financial instruments, and cash and cash equivalents.December 31, 2022 December 31, 2021In \u20ac millionFinancial debt 2,959 3,349Cash and cash equivalents -932 -941Other financial instruments -236 -259Net indebtedness 1,791 2,149The decrease in the net indebtedness is mainly due to the strong free cash \ufb02ow generation.\ue61f\ue61fSolvay Investment Grade rating is Baa2/P2 (stable outlook) with Moody\u2019s and BBB/A2 (negative outlook) with Standard & Poor\u2019s (upon the Solvay announcement of March 15, 2022 indicating the plans to separate itself into two independent companies).Financial debt: main borrowings December 31, 2022 December 31, 2021In \u20ac million (except where indicated) Nominal Coupon Maturity Secured Amount Fair Amount at Fair amountat avalueamortized valuemortized costcostSenior \u20ac notes 1.625% 2022 No 377 382Senior US$ note Cytec Industries Inc. (issuance 3.5% 2023 No 172 177US$ 400 million)Senior US$ note Cytec Industries Inc. (issuance 153 3.95% 2025 No 152 147 143 153US$ 250 million)Senior US$ notes (144A;US$ 800 million) 750 4.45% 2025 No 748 721 704 769Senior \u20ac notes 500 2.75% 2027 No 497 482 497 564Senior \u20ac notes 600 0.500% 2029 No 597 479 596 593Total 1,994 1,829 2,489 2,638There are no instances of default on the above-mentioned financial debts. There are no financial covenants, neither on Solvay SA, nor on any of the Group\u2019s holding companies.In 2022, the senior EUR bond (\u20ac378 million) was fully repaid in September as well as the Cytec bond (US$ 196 million) in December.Other financial instrumentsIn \u20ac million December 31, 2022 December 31, 2021Non-current other financial instruments 30 30Current other financial instruments 206 229Currency swaps 1 4Other marketable securities > 3 months 43 70Other current financial assets 162 155Other financial instruments 236 259The other marketable securities > 3 months include the bank drafts position.The other current financial assets mainly include margin calls of Energy Services for instruments with a negative fair value, and represent collateral for the obligations. Cash and cash equivalentsIn \u20ac million December 31, 2022 December 31, 2021Cash 630 620Term deposits 303 320Cash and cash equivalents 932 941By their nature, the carrying amount of cash and cash equivalents is equal to, or a very good proxy of, its fair value. Changes in financial debt and in other financial instruments arising from financing activities2021 2022In \u20ac million Total Cash \ufb02ows Cash \ufb02ows Changes Changes Other in Transfer Payment Other Total from from in foreign in other financing from non-of lease increase of repayment exchange current cash current to liabilities borrowings of rates financial \ufb02ows current borrowings assets Bonds 2,112 3 65 -186 1,994Other non-current debts 55 24 -32 2 -9 3 42Long term leasing debt 409 10 -125 119 413Non-current financial 2,576 27 -32 77 -320 121 2,450debtCurrent financial debt 773 222 -764 3 128 320 -113 -59 510Total financial debt 3,350 248 -796 80 128 -113 63 2,960Other non-current -30 -30financial instrumentsCurrency swaps -4 3 -1Other marketable-70 1 26 -43 securities > 3 monthsOther current financial -155 -2 1 -5 -162assetsOther financial -229 -1 27 -2 -206instrumentsTotal cash \ufb02ow -310 248 -796 79 27 128 -113 61 -366The financial debt decreased from \u20ac3,350 million at the end of 2021 to \u20ac2,960 million at the end of 2022.The non-current financial debt decreased by \u20ac(127) million, mainly resulting from: \u00b7 the transfer to current financial debt for \u20ac(320) million (mainly explained by the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186)\ue61fmillion and IFRS 16 leases for \u20ac(125) million); \u00b7 the change in foreign exchange rates for \u20ac77 million (significant impact of \u20ac65 million on senior bonds in USD); \u00b7 \u20ac119 million in \u201cOther\u201d mainly relates to leases that commenced during the year, as well as lease modifications.The current financial debt decreased by \u20ac(263) million, mainly in short term financial debt: \u00b7 the repayment in September 2022 of \u20ac(378) million for the remaining portion of the \u20ac750 million bonds and the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186) million; \u00b7 the transfer from non-current financial debt to current for \u20ac320 million (mainly explained by the Cytec bond US$ 196 million early repayment in December\ue61f2022 for \u20ac186 million and IFRS 16 leases for \u20ac125 million); \u00b7 the increase and decrease of borrowings is mainly explained by the issuance of commercial paper in June 2022 for \u20ac80 million, fully repaid in September\ue61f2022; and by short-term financing needs in Bulgaria and India; \u00b7 the increase of \u20ac128 million of margin calls on hedging instruments as part of Energy Services\u2019 activities; \u00b7 the repayment of short term lease obligations under IFRS 16 of \u20ac(113) million. The other financial instruments decreased by \u20ac23 million, mainly for the collateral related to the margin calls on energy services (see note F33 Net indebtedness), following the increase in the energy and gas prices. ",
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"value": "NOTE\ue61fF33NET INDEBTEDNESSThe Group\u2019s net indebtedness is the balance between its financial debts and other financial instruments, and cash and cash equivalents.December 31, 2022 December 31, 2021In \u20ac millionFinancial debt 2,959 3,349Cash and cash equivalents -932 -941Other financial instruments -236 -259Net indebtedness 1,791 2,149The decrease in the net indebtedness is mainly due to the strong free cash \ufb02ow generation.\ue61f\ue61fSolvay Investment Grade rating is Baa2/P2 (stable outlook) with Moody\u2019s and BBB/A2 (negative outlook) with Standard & Poor\u2019s (upon the Solvay announcement of March 15, 2022 indicating the plans to separate itself into two independent companies).Financial debt: main borrowings December 31, 2022 December 31, 2021In \u20ac million (except where indicated) Nominal Coupon Maturity Secured Amount Fair Amount at Fair amountat avalueamortized valuemortized costcostSenior \u20ac notes 1.625% 2022 No 377 382Senior US$ note Cytec Industries Inc. (issuance 3.5% 2023 No 172 177US$ 400 million)Senior US$ note Cytec Industries Inc. (issuance 153 3.95% 2025 No 152 147 143 153US$ 250 million)Senior US$ notes (144A;US$ 800 million) 750 4.45% 2025 No 748 721 704 769Senior \u20ac notes 500 2.75% 2027 No 497 482 497 564Senior \u20ac notes 600 0.500% 2029 No 597 479 596 593Total 1,994 1,829 2,489 2,638There are no instances of default on the above-mentioned financial debts. There are no financial covenants, neither on Solvay SA, nor on any of the Group\u2019s holding companies.In 2022, the senior EUR bond (\u20ac378 million) was fully repaid in September as well as the Cytec bond (US$ 196 million) in December.Other financial instrumentsIn \u20ac million December 31, 2022 December 31, 2021Non-current other financial instruments 30 30Current other financial instruments 206 229Currency swaps 1 4Other marketable securities > 3 months 43 70Other current financial assets 162 155Other financial instruments 236 259The other marketable securities > 3 months include the bank drafts position.The other current financial assets mainly include margin calls of Energy Services for instruments with a negative fair value, and represent collateral for the obligations. Cash and cash equivalentsIn \u20ac million December 31, 2022 December 31, 2021Cash 630 620Term deposits 303 320Cash and cash equivalents 932 941By their nature, the carrying amount of cash and cash equivalents is equal to, or a very good proxy of, its fair value. Changes in financial debt and in other financial instruments arising from financing activities2021 2022In \u20ac million Total Cash \ufb02ows Cash \ufb02ows Changes Changes Other in Transfer Payment Other Total from from in foreign in other financing from non-of lease increase of repayment exchange current cash current to liabilities borrowings of rates financial \ufb02ows current borrowings assets Bonds 2,112 3 65 -186 1,994Other non-current debts 55 24 -32 2 -9 3 42Long term leasing debt 409 10 -125 119 413Non-current financial 2,576 27 -32 77 -320 121 2,450debtCurrent financial debt 773 222 -764 3 128 320 -113 -59 510Total financial debt 3,350 248 -796 80 128 -113 63 2,960Other non-current -30 -30financial instrumentsCurrency swaps -4 3 -1Other marketable-70 1 26 -43 securities > 3 monthsOther current financial -155 -2 1 -5 -162assetsOther financial -229 -1 27 -2 -206instrumentsTotal cash \ufb02ow -310 248 -796 79 27 128 -113 61 -366The financial debt decreased from \u20ac3,350 million at the end of 2021 to \u20ac2,960 million at the end of 2022.The non-current financial debt decreased by \u20ac(127) million, mainly resulting from: \u00b7 the transfer to current financial debt for \u20ac(320) million (mainly explained by the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186)\ue61fmillion and IFRS 16 leases for \u20ac(125) million); \u00b7 the change in foreign exchange rates for \u20ac77 million (significant impact of \u20ac65 million on senior bonds in USD); \u00b7 \u20ac119 million in \u201cOther\u201d mainly relates to leases that commenced during the year, as well as lease modifications.The current financial debt decreased by \u20ac(263) million, mainly in short term financial debt: \u00b7 the repayment in September 2022 of \u20ac(378) million for the remaining portion of the \u20ac750 million bonds and the Cytec bond US$ 196 million early repayment in December 2022 for \u20ac(186) million; \u00b7 the transfer from non-current financial debt to current for \u20ac320 million (mainly explained by the Cytec bond US$ 196 million early repayment in December\ue61f2022 for \u20ac186 million and IFRS 16 leases for \u20ac125 million); \u00b7 the increase and decrease of borrowings is mainly explained by the issuance of commercial paper in June 2022 for \u20ac80 million, fully repaid in September\ue61f2022; and by short-term financing needs in Bulgaria and India; \u00b7 the increase of \u20ac128 million of margin calls on hedging instruments as part of Energy Services\u2019 activities; \u00b7 the repayment of short term lease obligations under IFRS 16 of \u20ac(113) million. The other financial instruments decreased by \u20ac23 million, mainly for the collateral related to the margin calls on energy services (see note F33 Net indebtedness), following the increase in the energy and gas prices. ",
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"value": "NOTE\ue61fF33NET INDEBTEDNESSThe Group\u2019s net indebtedness is the balance between its financial debts and other financial instruments, and cash and cash equivalents.December 31, 2022 December 31, 2021In \u20ac millionFinancial debt 2,959 3,349Cash and cash equivalents -932 -941Other financial instruments -236 -259Net indebtedness 1,791 2,149The decrease in the net indebtedness is mainly due to the strong free cash \ufb02ow generation.\ue61f\ue61fSolvay Investment Grade rating is Baa2/P2 (stable outlook) with Moody\u2019s and BBB/A2 (negative outlook) with Standard & Poor\u2019s (upon the Solvay announcement of March 15, 2022 indicating the plans to separate itself into two independent companies).Financial debt: main borrowings December 31, 2022 December 31, 2021In \u20ac million (except where indicated) Nominal Coupon Maturity Secured Amount Fair Amount at Fair amountat avalueamortized valuemortized costcostSenior \u20ac notes 1.625% 2022 No 377 382Senior US$ note Cytec Industries Inc. (issuance 3.5% 2023 No 172 177US$ 400 million)Senior US$ note Cytec Industries Inc. (issuance 153 3.95% 2025 No 152 147 143 153US$ 250 million)Senior US$ notes (144A;US$ 800 million) 750 4.45% 2025 No 748 721 704 769Senior \u20ac notes 500 2.75% 2027 No 497 482 497 564Senior \u20ac notes 600 0.500% 2029 No 597 479 596 593Total 1,994 1,829 2,489 2,638There are no instances of default on the above-mentioned financial debts. There are no financial covenants, neither on Solvay SA, nor on any of the Group\u2019s holding companies.In 2022, the senior EUR bond (\u20ac378 million) was fully repaid in September as well as the Cytec bond (US$ 196 million) in December.Other financial instrumentsIn \u20ac million December 31, 2022 December 31, 2021Non-current other financial instruments 30 30Current other financial instruments 206 229Currency swaps 1 4Other marketable securities > 3 months 43 70Other current financial assets 162 155Other financial instruments 236 259The other marketable securities > 3 months include the bank drafts position.The other current financial assets mainly include margin calls of Energy Services for instruments with a negative fair value, and represent collateral for the obligations. Cash and cash equivalentsIn \u20ac million December 31, 2022 December 31, 2021Cash 630 620Term deposits 303 320Cash and cash equivalents 932 941By their nature, the carrying amount of cash and cash equivalents is equal to, or a very good proxy of, its fair value. ",
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"value": "NOTE\ue61fF34OTHER LIABILITIES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021Wages and benefits debts 371 303VAT and other taxes 184 153Social security 51 58Financial instruments - operational 676 1,350Insurance premiums 15 19Advances from customers 97 91Other 106 76Other current liabilities 1,499 2,051Financial instruments \u2013 operational include held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"value": "NOTE\ue61fF34OTHER LIABILITIES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021Wages and benefits debts 371 303VAT and other taxes 184 153Social security 51 58Financial instruments - operational 676 1,350Insurance premiums 15 19Advances from customers 97 91Other 106 76Other current liabilities 1,499 2,051Financial instruments \u2013 operational include held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"pp-value-239-7": {
"value": "NOTE\ue61fF34OTHER LIABILITIES (CURRENT)In \u20ac million December 31, 2022 December 31, 2021Wages and benefits debts 371 303VAT and other taxes 184 153Social security 51 58Financial instruments - operational 676 1,350Insurance premiums 15 19Advances from customers 97 91Other 106 76Other current liabilities 1,499 2,051Financial instruments \u2013 operational include held for trading and cash \ufb02ow hedge derivatives (see note\ue61fF32.A. Overview of financial instruments). ",
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"value": "NOTE\ue61fF35COMMITMENTS TO ACQUIRE PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETSIn \u20ac million December 31, 2022 December 31, 2021Commitments to acquire property, plant and equipment and intangible assets 457 301The amount mainly relates to commitments for the acquisition of property, plant and equipment. The increase in 2022 over the prior year is mainly explained by the planned purchase of the new Solvay Group headquarters in Belgium as well\ue61fas the acquisition of industrial equipment for the extension of the Tavaux site in France.",
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"pp-value-243-3": {
"value": "NOTE\ue61fF36CONTINGENT ASSETS, LIABILITIES AND FINANCIAL GUARANTEESAccounting policyA contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Group.Contingent assets are not recognized in the consolidated financial statements since this may result in the recognition of income that may never be realized. However, when the realization of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate. Contingent assets are assessed continually to ensure that developments are appropriately re\ufb02ected in the consolidated financial statements. If it has become virtually certain that an in\ufb02ow of economic benefits will arise, the asset and the related income are recognized in the consolidated financial statements of the period in which the change occurs. If an in\ufb02ow of economic benefits has become probable, the Group discloses the contingent asset.A contingent liability is:(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or(b) a present obligation that arises from past events but is not recognized because:(i) it is not probable that an out\ufb02ow of resources embodying economic benefits will be required to settle the obligation; or(ii) the amount of the obligation cannot be measured with sufficient reliabilityContingent liabilities are not recognized in the consolidated financial statements, except if they arise from a business combination. They are disclosed unless the possibility of an out\ufb02ow of economic benefits is remote.Financial guarantees are contracts that require the Group to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.In order to avoid double counting, only guarantees in excess of liabilities recognized or disclosures made elsewhere in the Group's consolidated financial statements are disclosed in this note.\ue61f Regarding financial guarantees, all financial guarantees of the Group are presented in this note.In \u20ac million December 31, 2022 December 31, 2021Contingent assets 91 91Financial guarantees Rusvinyl 0 83Guarantees for pensions 378 348Environmental contingent liabilities 315 301Contingent liabilities 693 733Contingent AssetFollowing an arbitration procedure that began in 2012, on June 22, 2021 the ICC Arbitration Court in Geneva (CH) issued a partial award in favor of Solvay Specialty Polymers Italy SpA, ordering Edison S.p.A. (Edison) to pay \u20ac91.632 million for the losses, damages and costs incurred up to the end of 2016 in relation to certain environmental issues at the Spinetta Marengo and Bussi sites, previously owned and operated by (Mont)Edison SpA and Ausimont SpA. A further phase of the arbitration proceeding, expected to end in 2024, will define the quantification of the additional losses, damages and costs from 2017 onwards, as well as the interests applicable to the amount awarded and the costs of litigation, to be reimbursed to Solvay Specialty Polymers Italy SpA. No income was recognized during either 2021 or 2022 in relation to the partial award, pending Edison\u2019s appeals against the enforcement of the partial award.On January 23, 2023, the Group received a favorable ruling from the Court of Appeal of Milan which rejected Edison's appeal against the enforcement of the partial award, making it definitively enforceable in Italy.\ue61f On February 8, 2023, Edison settled the \u20ac91.632 million partial award in full with Solvay.\ue61f Contingent LiabilitiesThe financial guarantees related to Rusvinyl, the joint venture with SIBUR for the operation of a PVC plant in Russia were released in Q3 2022 following the full repayment of Rusvinyl financial debt. The guarantees for pensions are related to the main UK Pension Funds (\u20ac358 million) \u2013 See note F31.B.2. Description of obligations. Such corresponds to the amount by which the guarantee exceeds the recognized pension liability (as at December 31, 2022) or the recognized plan assets surplus as at (December 31, 2021). This guarantee applies to the pension liability measured based on a local UK regulatory basis (prudential basis) plus an allocation for market risk, which is higher when compared to the IAS\ue61f19 methodology. The probability of the guarantees being called is considered to be highly remote.Contingent liabilities of \u20ac315 million above relate to environmental remediation matters that can be estimated with sufficient reliability.Generally, in line with good business practice, we are not reporting any pending or threatened proceeding, which has not matured, and where the probability of existing or future exposure is unlikely or uncertain, where financial impact is not estimable and for which we are not able to quantify contingent liabilities.In the United States, Solvay Specialty Polymers USA, LLC (SpP) is a defendant in 35 separate individual and class action lawsuits relating to its historical use of per- and poly\ufb02uoroalkyl substances (PFAS). The vast majority of these cases (30) are pending in the federal and state courts in the state of New Jersey, in the US, and the majority (27) are claims by private plaintiffs seeking medical monitoring or compensation for alleged personal injury or other alleged economic loss. Three (3) of the cases involve civil claims by separate US state governmental authorities\u2014New Jersey, Michigan and Illinois\u2014seeking various damages for alleged violations of state environmental laws, including natural resource damages. The State of New Jersey also seeks the environmental cleanup of PFAS pollution allegedly caused by a single operating facility of the subsidiary in New Jersey. Two (2) cases relate to allegations that contamination from the same operating facility caused contamination to a local municipal well. Finally, three (3) of the cases allege that products purchased from the subsidiary caused contamination elsewhere. Overall, the number of these cases remains low in comparison to other industry participants. Solvay continues to dispute the merits of these claims and defend itself accordingly. In all of these cases, the plaintiffs have the burden of proof against all defendants. See note F31.B Provisions Other than Employee Benefits for additional information. In Italy, there are several pending litigations: \u00b7 (a) With reference to the Rosignano industrial site, certain criminal preliminary investigations continue to be pending before the Criminal Court of Livorno regarding the alleged contamination of certain areas outside the site;\ue61f \u00b7 (b) With regard to the Spinetta industrial site, in December 2022 the Public Prosecutor Office of the Court of Alessandria closed the preliminary investigations started at the end of 2020 regarding certain alleged environmental violations of two Solvay managers. The Public Prosecutor Office should decide to request the dismissal of this provisional charge or alternatively the case should go to trial by the end of Q1, 2023; \u00b7 (c) With regard to the Bussi industrial site, sold by Solvay in 2016 with the surrounding area sold in 2018, an administrative litigation is pending in relation to the identification of the polluter of the industrial site.\ue61fBased on the overall assessment, including compliance with applicable laws and regulations and the unlikely or uncertain probability of existing or future exposure, as well as undefined financial impact, which is not estimable at this time, no additional provisions have been recorded in association with these litigations and contingent liabilities cannot be quantified.",
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"value": "NOTE\ue61fF36CONTINGENT ASSETS, LIABILITIES AND FINANCIAL GUARANTEESAccounting policyA contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Group.Contingent assets are not recognized in the consolidated financial statements since this may result in the recognition of income that may never be realized. However, when the realization of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate. Contingent assets are assessed continually to ensure that developments are appropriately re\ufb02ected in the consolidated financial statements. If it has become virtually certain that an in\ufb02ow of economic benefits will arise, the asset and the related income are recognized in the consolidated financial statements of the period in which the change occurs. If an in\ufb02ow of economic benefits has become probable, the Group discloses the contingent asset.A contingent liability is:(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or(b) a present obligation that arises from past events but is not recognized because:(i) it is not probable that an out\ufb02ow of resources embodying economic benefits will be required to settle the obligation; or(ii) the amount of the obligation cannot be measured with sufficient reliabilityContingent liabilities are not recognized in the consolidated financial statements, except if they arise from a business combination. They are disclosed unless the possibility of an out\ufb02ow of economic benefits is remote.Financial guarantees are contracts that require the Group to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.In order to avoid double counting, only guarantees in excess of liabilities recognized or disclosures made elsewhere in the Group's consolidated financial statements are disclosed in this note.\ue61f Regarding financial guarantees, all financial guarantees of the Group are presented in this note.",
"dimensions": {
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"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"pp-value-248-2": {
"value": "NOTE\ue61fF37RELATED PARTIESBalances and transactions between Solvay\ue61fSA and (a) its subsidiaries and (b) its joint operations for the Group\u2019s share of the respective joint operations, which are related parties of Solvay\ue61fSA, have been eliminated in consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.Sale and purchase transactions In \u20ac million Sale of goods Purchase of goods2022 2021 2022 2021Associates 20 13 -38 -34Joint ventures 31 22 -20 -16Other related parties 91 70 -98 -56Total 142 106 -157 -107In \u20ac million Amounts owed by related parties Amounts owed to related partiesDecember 31 2022 2021 2022 2021Associates 1 4 5Joint ventures 1 1Other related parties 15 16 28 8Total 15 16 34 14Loans to related partiesIn \u20ac million December 31, 2022 December 31, 2021Loans to associates 2 0Loans to other related parties 54 24Total 55 24Loans from other related parties -4 -4Compensation of key management personnelKey management personnel is composed of all members of the Board of Directors and members of the Executive Leadership Team.Amounts due in respect of the year (compensation) and obligations existing at the end of the year in the consolidated statement of financial position:In \u20ac million December 31, 2022 December 31, 2021Wages, charges and short-term benefits 4 3Long-term benefits 1 1Cash-settled share-based payments liability 4 3Total 9 7Expenses of the year:In \u20ac million 2022 2021Wages, charges and short-term benefits -11 -10Termination benefit -5Long-term benefits -2 -2Share-based payments expenses -5 -4Total -18 -21Excluding employer social charges and taxes. Please refer to the Compensation Report for further details.",
"dimensions": {
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"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"pp-value-248-3": {
"value": "NOTE\ue61fF37RELATED PARTIESCompensation of key management personnelKey management personnel is composed of all members of the Board of Directors and members of the Executive Leadership Team.Amounts due in respect of the year (compensation) and obligations existing at the end of the year in the consolidated statement of financial position:In \u20ac million December 31, 2022 December 31, 2021Wages, charges and short-term benefits 4 3Long-term benefits 1 1Cash-settled share-based payments liability 4 3Total 9 7Expenses of the year:In \u20ac million 2022 2021Wages, charges and short-term benefits -11 -10Termination benefit -5Long-term benefits -2 -2Share-based payments expenses -5 -4Total -18 -21Excluding employer social charges and taxes. Please refer to the Compensation Report for further details.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"pp-value-252-2": {
"value": "NOTE\ue61fF38DIVIDENDS PROPOSED FOR DISTRIBUTION The Board of Directors will propose to the \u201cGeneral Shareholders\u2019 Meeting\u201d a gross dividend of \u20ac4.05 per share.Taking into account the dividend advance payment distributed in January\ue61f2023 of \u20ac\ue61f1.54 per share, the dividends proposed for distribution, but not yet recognized as a distribution to equity holders amount to \u20ac\ue61f266\ue61fmillion.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"pp-value-253-2": {
"value": "NOTE\ue61fF39EVENTS AFTER THE REPORTING PERIODAccounting policyEvents after the reporting period which provide evidence of conditions that existed at the end of the reporting period (adjusting events) are recognized in the consolidated financial statements. Events indicative of conditions that arose after the reporting period are non-adjusting events and are disclosed in the notes if material.EdisonSolvay received compensation of \u20ac91.632 million after decisions by the International Chamber of Commerce's arbitration tribunal, the Swiss Supreme Court, and the Milan Court of Appeal, all of which ruled in favor of Solvay. The outcome follows more than 10 years of legal proceedings in relation to Solvay\u2019s claims of environmental breaches by Edison, a subsidiary of EDF, in the context of Solvay's acquisition of the Italian company Ausimont in 2002.The compensation relates to costs, losses and damages suffered by Solvay up to the end of 2016. Additional arbitration procedures are currently ongoing regarding costs, losses and damages suffered by Solvay from January 2017 onwards. Solvay is confident in the merits of its claim for additional\ue61fsignificant compensation for damage in this second phase and\ue61fexpects proceedings to conclude in 2024.RusvinylOn February 6, 2023, the Group announced that it is in advanced negotiations to divest its stake in Rusvinyl, an independent 50/50 joint venture in Russia, to its joint venture partner, Sibur. In addition to the recently obtained preliminary clearance from Russian governmental authorities, the potential transaction is still subject to several other regulatory approvals.The Group considers that the Rusvinyl joint venture does not meet the criteria under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations to be classified as held for sale at December 31, 2022 nor at the date of authorization of these consolidated financial statements.\ue61f",
"dimensions": {
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"language": "en",
"entity": "scheme:549300MMVL80RTBP3O28",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"pp-value-254-6": {
"value": "NOTE\ue61fF40LIST OF COMPANIES INCLUDED IN THE CONSOLIDATION SCOPEThe Group consists of Solvay\ue61fSA and a total of 304 investees.Of these 304\ue61finvestees, 152 are fully consolidated, 7 are proportionately consolidated and 23 are accounted for under the equity method, whilst the other 122 do not meet the\ue61fcriteria of significance.In accordance with the concept of materiality, certain companies (Other Investments), which are insignificant, have not been included in the consolidation scope. They are measured at cost and tested for impairment on an annual basis, which is considered a good proxy of their fair value. For more information, refer to Principles of consolidation.List of companies entering or leaving the consolidation scopeCompanies entering the consolidation scopeCountryCompanyCommentsPORTUGAL Solvay Biotecnologia Portugal LDA, Carnaxide New companyLUXEMBOURG Renestia S.A., Capellen New companyUNITED KINGDOM Oldbury Energy Solutions UK Ltd, Oldbury Meets the consolidation criteriaUNITED STATES Energy Solutions US LLC, Breckenridge, TX Meets the consolidation criteriaCompanies leaving the consolidation scopeCountryCompanyCommentsLATVIA Solvay Business Services Latvia SIA, Riga LiquidatedUNITED KINGDOM Penso Holdings Ltd, Coventry LiquidatedUNITED STATES Solvay Soda Ash Expansion JV, Houston, Texas Merged into American Soda LLC\ue61f Solvay Soda Ash Joint Venture, Houston, Texas Merged into American Soda LLCList of subsidiariesIndicating the percentage holding.The percentage of voting rights is very close to the percentage holding. ARGENTINASolvay Argentina SA, Buenos Aires 100Solvay Quimica SA, Buenos Aires 100AUSTRALIA \ue61fCytec Asia Pacific Holdings Pty Ltd, Baulkham Hills 100Cytec Australia Holdings Pty Ltd, Baulkham Hills 100Solvay Interox Pty Ltd, Banksmeadow 100AUSTRIA \ue61fSolvay \u00d6sterreich GmbH, Wien 100BELGIUM \ue61fCarri\u00e8res les Petons S.P.R.L., Walcourt 100Solvay Chemicals International S.A., Brussels 100Solvay Chimie S.A., Brussels 100Solvay Participations Belgique S.A., Brussels 100Solvay Pharmaceuticals S.A. - Management Services, Brussels 100Solvay Specialty Polymers Belgium SA / NV, Brussels 100Solvay Stock Option Management S.P.R.L., Brussels 100BRAZIL \ue61fCogeracao de Energia Electricica Paraiso SA, Brotas 100Rhodia Brasil SA, Sao Paolo 100Rhodia Poliamida Brasil Ltda , Sao Paolo 100Rhopart-Participacoes Servidos e Comercio Ltda, Sao Paolo 100BULGARIA \ue61fSolvay Bulgaria EAD, Devnya 100CANADA \ue61fCytec Canada Inc, Niagara Falls Welland 100Solvay Canada Inc, Toronto 100CHINA \ue61fCytec Industries Co. Ltd, Shanghai 100Cytec Engineered Materials Co. Ltd, Shanghai 100Liyang Solvay Rare Earth New Material Co., Ltd, Liyang City 96.3Rhodia Hong Kong Ltd , Hong Kong 100Solvay (Shanghai) International Trading Co., Ltd, Shanghai 100Solvay (Shanghai) Ltd, Shanghai 100Solvay (Zhangjiangang) Specialty Chemicals Co. Ltd, Suzhou 100Solvay (Zhenjiang) Chemicals Co., Ltd, Zhenjiang New area 100Solvay Chemicals (Shanghai) Co. Ltd, Shanghai 100Solvay China Co., Ltd , Shanghai 100Solvay Fine Chemical Additives (Qingdao) Co., Ltd, Qingdao 100Solvay Hengchang (Zhangjiagang) Specialty Chemical Co., Ltd, Zhangjiagang City 70Solvay Lantian (Quzhou) Chemicals Co., Ltd, Zhejiang 55Solvay Specialty Polymers (Changshu) Co. Ltd, Changshu 100Zhuhai Solvay Specialty Chemicals Co Ltd, Zhuhai City 100CHILE \ue61fCytec Chile Ltda, Santiago 100FINLAND \ue61fSolvay Chemicals Finland Oy, Voikkaa 100FRANCE \ue61fCog\u00e9n\u00e9ration Tavaux SAS, Paris 33.3Rhodia Chimie S.A.S. , Aubervilliers 100Rhodia Energy GHG S.A.S. , Puteaux 100Rhodia Laboratoire du Futur S.A.S. , Pessac 100Rhodia Operations S.A.S. , Aubervilliers 100Rhodia Participations S.N.C. , Courbevoie 100Rhodianyl S.A.S. , Saint-Fons 100Solvay - Op\u00e9rations - France S.A.S., Paris 100Solvay Energie France S.A.S., Paris 100Solvay Energy Services S.A.S. , Puteaux 100Solvay Finance S.A., Paris 100Solvay France S.A. , Courbevoie 100GERMANY \ue61fCavity GmbH, Hannover 100Cytec Engineered Materials GmbH, Oestringen 100European Carbon Fiber GmbH , Kelheim 100Horizon Immobilien AG, Hannover 100Salzgewinnungsgesellschaft Westfalen GmbH & Co KG, Hannover 65German limited partnership, which makes use of the exemptions offered by Section 264(b) of the German Commercial \ue61fCode, not to publish their annual financial statements.Solvay Chemicals GmbH, Hannover 100Solvay Fluor GmbH, Hannover 100Solvay Flux GmbH, Hannover 100Solvay GmbH, Hannover 100Solvay Specialty Polymers Germany GmbH, Hannover 100Solvin GmbH & Co. KG - PVDC, Rheinberg 100Solvin Holding GmbH, Hannover 100INDIA \ue61fSolvay Specialities India Private Limited, Mumbai 100INDONESIA \ue61fPT. Cytec Indonesia, Jakarta 100IRELAND \ue61fSolvay Finance Ireland Unlimited, Dublin 100ITALY \ue61fSolvay Chimica Italia S.p.A., Milano 100Solvay Energy Services Italia S.r.l., Bollate 100Solvay Solutions Italia S.p.A., Milano 100Solvay Specialty Polymers Italy S.p.A., Milano 100JAPAN \ue61fNippon Solvay KK, Tokyo 100Solvay Japan K.K., Tokyo 100Solvay Nicca Ltd, Tokyo 60Solvay Special Chem Japan Ltd, Anan City 100Solvay Specialty Polymers Japan KK, Minato Ku-Tokyo 100LUXEMBOURG \ue61fCytec Luxembourg International Holdings Sarl, Strassen 100Renestia S.A., Capellen 100Solvay Chlorovinyls Holding S.a.r.l., Luxembourg 100Solvay Finance (Luxembourg) SA, Luxembourg 100Solvay Hortensia S.A., Luxembourg 100Solvay Luxembourg S.a.r.l., Luxembourg 100MEXICO \ue61fCytec de Mexico S.A. de C.V., Jalisco 100Solvay Fluor Mexico S.A. de C.V., Ciudad Juarez 100Solvay Mexicana S. de R.L. de C.V., Monterrey 100NETHERLANDS \ue61fCytec Industries B.V., Vlaardingen 100Rhodia International Holdings B.V., Den Haag 100Solvay Chemicals and Plastics Holding B.V., Linne-Herten 100Solvay Chemie B.V., Linne-Herten 100Solvay Solutions Nederland B.V., Klundert 100Solvin Holding Nederland B.V., Linne-Herten 100NEW ZEALAND \ue61fSolvay New Zealand Ltd, Auckland 100PERU \ue61fCytec Peru S.A.C., Lima 100POLAND \ue61fSolvay Poland Sp. z o.o., Gorzow Wielkopolski 100PORTUGAL \ue61fSolvay Biotecnologia Portugal LDA, Carnaxide 100Solvay Business Services Portugal Unipessoal Lda, Carnaxide 100Solvay Peroxidos Portugal Unipessoal LDA , Povoa 100RUSSIA \ue61fSolvay Vostok OOO, Moscow 100SINGAPORE \ue61fRhodia Amines Chemicals Pte Ltd, Singapore 100Solvay Fluor Holding (Asia-Pacific) Pte. Ltd., Singapore 100Solvay Specialty Chemicals Asia Pacific Pte. Ltd., Singapore 100SOUTH KOREA\ue61fCytec Korea Inc, Seoul 100Solvay Chemical Services Korea Co. Ltd, Seoul 100Solvay Silica Korea Co. Ltd, Incheon 100Solvay Specialty Polymers Korea Company Ltd, Seoul 100SPAIN \ue61fSolvay Quimica S.L., Barcelona 100SWITZERLAND \ue61fSolvay Vinyls Holding AG, Bad Zurzach 100THAILAND \ue61fSolvay Asia Pacific Company Ltd, Bangkok 100Solvay (Bangpoo) Specialty Chemicals Ltd, Bangkok 100Solvay (Thailand) Ltd, Bangkok 100Solvay Peroxythai Ltd, Bangkok 100TURKEY \ue61fSolvay Istanbul Kimya Limited Sirketi, Istanbul 100UNITED ARAB EMIRATES \ue61fCytec Nibras llc, Al Ain 100UNITED KINGDOM \ue61fAdvanced Composites Group Investments Ltd, Heanor 100Cytec Engineered Materials Ltd, Wrexham 100Cytec Industrial Materials (Derby) Ltd, Heanor 100Cytec Industrial Materials (Manchester) Ltd, Heanor 100Cytec Industries UK Holdings Ltd, Wrexham 100McIntyre Group Ltd, Watford 100Oldbury Energy Solutions UK Ltd, Oldbury 100Rhodia Holdings Ltd, Watford 100Rhodia International Holdings Ltd, Oldbury 100Rhodia Limited, Watford 100Rhodia Organique Fine Ltd, Watford 100Rhodia Overseas Ltd, Watford 100Rhodia Pharma Solutions Holdings Ltd, Cramlington 100Rhodia Pharma Solutions Ltd, Cramlington 100Rhodia Reorganisation, Watford 100Solvay Interox Ltd, Warrington 100Solvay Solutions UK Ltd, Watford 100Solvay UK Holding Company Ltd, Warrington 100Umeco Composites Ltd, Heanor 100Umeco Ltd, Heanor 100UNITED STATES \ue61fAmerican Soda LLC, Houston, TX 100Ausimont Industries, Inc., Wilmington, Delaware 100CEM Defense Materials LLC, Tempe Arizona 100Cytec Engineered Materials Inc., Princeton New Jersey 100Cytec Global Holdings Inc., Princeton New Jersey 100Cytec Industrial Materials (ok) Inc., Tulsa Oklahoma 100Cytec Industries Inc, Princeton New Jersey 100Cytec Korea Inc., Princeton New Jersey 100Cytec Technology Corp., Princeton New Jersey 100Energy Solutions US LLC, Breckenridge, Texas 100Garret Mountain Insurance Co., Burlington Vermont 100Rocky Mountain Coal Company, LLC, Houston, Texas 100Solvay America Holdings, Inc., Houston, Texas 100Solvay America Inc., Houston, Texas 100Solvay Chemicals, Inc., Houston, Texas 100Solvay Finance (America) LLC, Houston, Texas 100Solvay Fluorides, LLC., Greenwich, Connecticut 100Solvay Holding Inc., Princeton, New Jersey 100Solvay India Holding Inc., Princeton, New Jersey 100Solvay Specialty Polymers USA, LLC, Alpharetta, Georgia 100Solvay USA INC., Princeton, New Jersey 100URUGUAY \ue61fZamin Company S/A, Montevideo 100",
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"pp-value-254-7": {
"value": "NOTE\ue61fF40LIST OF COMPANIES INCLUDED IN THE CONSOLIDATION SCOPEThe Group consists of Solvay\ue61fSA and a total of 304 investees.Of these 304\ue61finvestees, 152 are fully consolidated, 7 are proportionately consolidated and 23 are accounted for under the equity method, whilst the other 122 do not meet the\ue61fcriteria of significance.In accordance with the concept of materiality, certain companies (Other Investments), which are insignificant, have not been included in the consolidation scope. They are measured at cost and tested for impairment on an annual basis, which is considered a good proxy of their fair value. For more information, refer to Principles of consolidation.List of companies entering or leaving the consolidation scopeCompanies entering the consolidation scopeCountryCompanyCommentsPORTUGAL Solvay Biotecnologia Portugal LDA, Carnaxide New companyLUXEMBOURG Renestia S.A., Capellen New companyUNITED KINGDOM Oldbury Energy Solutions UK Ltd, Oldbury Meets the consolidation criteriaUNITED STATES Energy Solutions US LLC, Breckenridge, TX Meets the consolidation criteriaCompanies leaving the consolidation scopeCountryCompanyCommentsLATVIA Solvay Business Services Latvia SIA, Riga LiquidatedUNITED KINGDOM Penso Holdings Ltd, Coventry LiquidatedUNITED STATES Solvay Soda Ash Expansion JV, Houston, Texas Merged into American Soda LLC\ue61f Solvay Soda Ash Joint Venture, Houston, Texas Merged into American Soda LLCList of subsidiariesIndicating the percentage holding.The percentage of voting rights is very close to the percentage holding. ARGENTINASolvay Argentina SA, Buenos Aires 100Solvay Quimica SA, Buenos Aires 100AUSTRALIA \ue61fCytec Asia Pacific Holdings Pty Ltd, Baulkham Hills 100Cytec Australia Holdings Pty Ltd, Baulkham Hills 100Solvay Interox Pty Ltd, Banksmeadow 100AUSTRIA \ue61fSolvay \u00d6sterreich GmbH, Wien 100BELGIUM \ue61fCarri\u00e8res les Petons S.P.R.L., Walcourt 100Solvay Chemicals International S.A., Brussels 100Solvay Chimie S.A., Brussels 100Solvay Participations Belgique S.A., Brussels 100Solvay Pharmaceuticals S.A. - Management Services, Brussels 100Solvay Specialty Polymers Belgium SA / NV, Brussels 100Solvay Stock Option Management S.P.R.L., Brussels 100BRAZIL \ue61fCogeracao de Energia Electricica Paraiso SA, Brotas 100Rhodia Brasil SA, Sao Paolo 100Rhodia Poliamida Brasil Ltda , Sao Paolo 100Rhopart-Participacoes Servidos e Comercio Ltda, Sao Paolo 100BULGARIA \ue61fSolvay Bulgaria EAD, Devnya 100CANADA \ue61fCytec Canada Inc, Niagara Falls Welland 100Solvay Canada Inc, Toronto 100CHINA \ue61fCytec Industries Co. Ltd, Shanghai 100Cytec Engineered Materials Co. Ltd, Shanghai 100Liyang Solvay Rare Earth New Material Co., Ltd, Liyang City 96.3Rhodia Hong Kong Ltd , Hong Kong 100Solvay (Shanghai) International Trading Co., Ltd, Shanghai 100Solvay (Shanghai) Ltd, Shanghai 100Solvay (Zhangjiangang) Specialty Chemicals Co. Ltd, Suzhou 100Solvay (Zhenjiang) Chemicals Co., Ltd, Zhenjiang New area 100Solvay Chemicals (Shanghai) Co. Ltd, Shanghai 100Solvay China Co., Ltd , Shanghai 100Solvay Fine Chemical Additives (Qingdao) Co., Ltd, Qingdao 100Solvay Hengchang (Zhangjiagang) Specialty Chemical Co., Ltd, Zhangjiagang City 70Solvay Lantian (Quzhou) Chemicals Co., Ltd, Zhejiang 55Solvay Specialty Polymers (Changshu) Co. Ltd, Changshu 100Zhuhai Solvay Specialty Chemicals Co Ltd, Zhuhai City 100CHILE \ue61fCytec Chile Ltda, Santiago 100FINLAND \ue61fSolvay Chemicals Finland Oy, Voikkaa 100FRANCE \ue61fCog\u00e9n\u00e9ration Tavaux SAS, Paris 33.3Rhodia Chimie S.A.S. , Aubervilliers 100Rhodia Energy GHG S.A.S. , Puteaux 100Rhodia Laboratoire du Futur S.A.S. , Pessac 100Rhodia Operations S.A.S. , Aubervilliers 100Rhodia Participations S.N.C. , Courbevoie 100Rhodianyl S.A.S. , Saint-Fons 100Solvay - Op\u00e9rations - France S.A.S., Paris 100Solvay Energie France S.A.S., Paris 100Solvay Energy Services S.A.S. , Puteaux 100Solvay Finance S.A., Paris 100Solvay France S.A. , Courbevoie 100GERMANY \ue61fCavity GmbH, Hannover 100Cytec Engineered Materials GmbH, Oestringen 100European Carbon Fiber GmbH , Kelheim 100Horizon Immobilien AG, Hannover 100Salzgewinnungsgesellschaft Westfalen GmbH & Co KG, Hannover 65German limited partnership, which makes use of the exemptions offered by Section 264(b) of the German Commercial \ue61fCode, not to publish their annual financial statements.Solvay Chemicals GmbH, Hannover 100Solvay Fluor GmbH, Hannover 100Solvay Flux GmbH, Hannover 100Solvay GmbH, Hannover 100Solvay Specialty Polymers Germany GmbH, Hannover 100Solvin GmbH & Co. KG - PVDC, Rheinberg 100Solvin Holding GmbH, Hannover 100INDIA \ue61fSolvay Specialities India Private Limited, Mumbai 100INDONESIA \ue61fPT. Cytec Indonesia, Jakarta 100IRELAND \ue61fSolvay Finance Ireland Unlimited, Dublin 100ITALY \ue61fSolvay Chimica Italia S.p.A., Milano 100Solvay Energy Services Italia S.r.l., Bollate 100Solvay Solutions Italia S.p.A., Milano 100Solvay Specialty Polymers Italy S.p.A., Milano 100JAPAN \ue61fNippon Solvay KK, Tokyo 100Solvay Japan K.K., Tokyo 100Solvay Nicca Ltd, Tokyo 60Solvay Special Chem Japan Ltd, Anan City 100Solvay Specialty Polymers Japan KK, Minato Ku-Tokyo 100LUXEMBOURG \ue61fCytec Luxembourg International Holdings Sarl, Strassen 100Renestia S.A., Capellen 100Solvay Chlorovinyls Holding S.a.r.l., Luxembourg 100Solvay Finance (Luxembourg) SA, Luxembourg 100Solvay Hortensia S.A., Luxembourg 100Solvay Luxembourg S.a.r.l., Luxembourg 100MEXICO \ue61fCytec de Mexico S.A. de C.V., Jalisco 100Solvay Fluor Mexico S.A. de C.V., Ciudad Juarez 100Solvay Mexicana S. de R.L. de C.V., Monterrey 100NETHERLANDS \ue61fCytec Industries B.V., Vlaardingen 100Rhodia International Holdings B.V., Den Haag 100Solvay Chemicals and Plastics Holding B.V., Linne-Herten 100Solvay Chemie B.V., Linne-Herten 100Solvay Solutions Nederland B.V., Klundert 100Solvin Holding Nederland B.V., Linne-Herten 100NEW ZEALAND \ue61fSolvay New Zealand Ltd, Auckland 100PERU \ue61fCytec Peru S.A.C., Lima 100POLAND \ue61fSolvay Poland Sp. z o.o., Gorzow Wielkopolski 100PORTUGAL \ue61fSolvay Biotecnologia Portugal LDA, Carnaxide 100Solvay Business Services Portugal Unipessoal Lda, Carnaxide 100Solvay Peroxidos Portugal Unipessoal LDA , Povoa 100RUSSIA \ue61fSolvay Vostok OOO, Moscow 100SINGAPORE \ue61fRhodia Amines Chemicals Pte Ltd, Singapore 100Solvay Fluor Holding (Asia-Pacific) Pte. Ltd., Singapore 100Solvay Specialty Chemicals Asia Pacific Pte. Ltd., Singapore 100SOUTH KOREA\ue61fCytec Korea Inc, Seoul 100Solvay Chemical Services Korea Co. Ltd, Seoul 100Solvay Silica Korea Co. Ltd, Incheon 100Solvay Specialty Polymers Korea Company Ltd, Seoul 100SPAIN \ue61fSolvay Quimica S.L., Barcelona 100SWITZERLAND \ue61fSolvay Vinyls Holding AG, Bad Zurzach 100THAILAND \ue61fSolvay Asia Pacific Company Ltd, Bangkok 100Solvay (Bangpoo) Specialty Chemicals Ltd, Bangkok 100Solvay (Thailand) Ltd, Bangkok 100Solvay Peroxythai Ltd, Bangkok 100TURKEY \ue61fSolvay Istanbul Kimya Limited Sirketi, Istanbul 100UNITED ARAB EMIRATES \ue61fCytec Nibras llc, Al Ain 100UNITED KINGDOM \ue61fAdvanced Composites Group Investments Ltd, Heanor 100Cytec Engineered Materials Ltd, Wrexham 100Cytec Industrial Materials (Derby) Ltd, Heanor 100Cytec Industrial Materials (Manchester) Ltd, Heanor 100Cytec Industries UK Holdings Ltd, Wrexham 100McIntyre Group Ltd, Watford 100Oldbury Energy Solutions UK Ltd, Oldbury 100Rhodia Holdings Ltd, Watford 100Rhodia International Holdings Ltd, Oldbury 100Rhodia Limited, Watford 100Rhodia Organique Fine Ltd, Watford 100Rhodia Overseas Ltd, Watford 100Rhodia Pharma Solutions Holdings Ltd, Cramlington 100Rhodia Pharma Solutions Ltd, Cramlington 100Rhodia Reorganisation, Watford 100Solvay Interox Ltd, Warrington 100Solvay Solutions UK Ltd, Watford 100Solvay UK Holding Company Ltd, Warrington 100Umeco Composites Ltd, Heanor 100Umeco Ltd, Heanor 100UNITED STATES \ue61fAmerican Soda LLC, Houston, TX 100Ausimont Industries, Inc., Wilmington, Delaware 100CEM Defense Materials LLC, Tempe Arizona 100Cytec Engineered Materials Inc., Princeton New Jersey 100Cytec Global Holdings Inc., Princeton New Jersey 100Cytec Industrial Materials (ok) Inc., Tulsa Oklahoma 100Cytec Industries Inc, Princeton New Jersey 100Cytec Korea Inc., Princeton New Jersey 100Cytec Technology Corp., Princeton New Jersey 100Energy Solutions US LLC, Breckenridge, Texas 100Garret Mountain Insurance Co., Burlington Vermont 100Rocky Mountain Coal Company, LLC, Houston, Texas 100Solvay America Holdings, Inc., Houston, Texas 100Solvay America Inc., Houston, Texas 100Solvay Chemicals, Inc., Houston, Texas 100Solvay Finance (America) LLC, Houston, Texas 100Solvay Fluorides, LLC., Greenwich, Connecticut 100Solvay Holding Inc., Princeton, New Jersey 100Solvay India Holding Inc., Princeton, New Jersey 100Solvay Specialty Polymers USA, LLC, Alpharetta, Georgia 100Solvay USA INC., Princeton, New Jersey 100URUGUAY \ue61fZamin Company S/A, Montevideo 100List of joint operationsIndicating the percentage holding. AUSTRIASolvay Sisecam Holding AG, Wien 75BELGIUM \ue61fBASF Interox H2O2 Production N.V., Brussels 50BULGARIA \ue61fSolvay Sodi AD, Devnya 73.5NETHERLANDS \ue61fMTP HP JV C.V., Weesp 50MTP HP JV Management bv, Weesp 50SAUDI ARABIA \ue61fSaudi Hydrogen Peroxide Co, Jubail 50THAILAND \ue61fMTP HP JV (Thailand) Ltd, Bangkok 50Joint venturesAUSTRALIAAqua Pharma Australia Pty Ltd, Armidale 50BELGIUM \ue61fEECO Holding SA, Brussels 33.3BRAZIL \ue61fPeroxidos do Brasil Ltda, Sao Paulo 69.4CANADA \ue61fAqua Pharma Inc, Saint John 50CHILE \ue61fAqua Pharma Chile Spa, Puerto Montt 50CHINA \ue61fShandong Huatai Interox Chemical Co. Ltd, Dongying 50INDIA \ue61fHindustan Gum & Chemicals Ltd, New Delhi 50IRELAND \ue61fAqua Pharma Ireland Ltd, Dublin 50ITALY \ue61fCogeneration Rosignano S.r.l., Rosignano 25.4Cogeneration Spinetta S.p.a., Bollate 33.3NORWAY \ue61fAqua Pharma Group A.S., Lillehammer 50Aqua Pharma A.S., Lillehammer 50Haugaland Shipping A.S., Haugesund 50RUSSIA \ue61fRusvinyl OOO, Moscow 50TAIWAN \ue61fShinsol Advanced Chemicals Corporation, New Taipei 51UNITED ARAB EMIRATES \ue61fStrata - Solvay Advanced Materials Joint-Venture LLC, Al Ain 50UNITED KINGDOM \ue61fAqua Pharma Technical Ltd, Inverness 50Aqua Pharma Ltd, Inverness 50UNITED STATES \ue61fAqua Pharma U.S. Inc, Kirkland 25AssociatesCHINAQingdao Hiwin Solvay Chemicals Co. Ltd, Qingdao 30FRANCE \ue61fGIE Chime Salindres, Salindres 50INDONESIA \ue61fSolvay Manyar P.T., Gresik 50MEXICO \ue61fSilicatos y Derivados S.A. DE C.V., Estado de Mexico 20",
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"value": "Rue de Ransbeek 310B\ue61f\u2013 1120 BrusselsSolvay SA also has a Group internal factoring activity without recourse. As a result, Solvay SA owns and manages Group\u2019s trade receivables from customers based in Europe and in Asia. It manages the research center at Neder-Over-Heembeek and a very limited number of commercial activities not undertaken through subsidiaries.",
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