RESULTS FOR 1st HALF 2000 SHOW STRONG UPTURN

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RESULTS FOR 1st HALF 2000 SHOW STRONG UPTURN

• Sales up 23
• Net current earnings up 40 (EUR 255 M)
• Strategic developments in Pharmaceuticals
• Intensification of marketing and RD programs
• Launch of AndroGel in the US (June 2000)

Brussels - July 27, 2000 -
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I. H1/00 RESULTS HIGHLIGHTS
RECORD LEVEL AND DOUBLE DIGIT GROWTH
M EUR H1/00 vs H1/99

• Sales 4,600 23
• EBIT 375 32
• Net current earnings 255 40
• Net earnings 256 41
• EPS 3 EUR/share 40
• AND ALSO
• IMPROVED MARGIN THANKS TO BETTER COST STRUCTURE
  AND PRODUCT PORTFOLIO

non-audited figures
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RESULTS HIGHLIGHTS
H1/00 vs H1/99

H1/99
H1/00
Millions of EUR (1)
Sales 3,725 4,600 23 EBIT (2) 285 375
32 Net debt expenses - 23 - 43 87 Taxes
(on current earnings) - 80 - 77 - 4 Net
current earnings 182 255 40 Net extraordinary
items 0 1 n.s. Net earnings 182 256
41 Depreciation 246 270 10 Cash
flow 428 526 23
(1) non-audited figures (2) EBIT Earnings
before net debt expenses, taxes and unallocated
items (3) 1 EUR 0.9556 USD (06.30.2000)
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MARGIN IMPROVEMENT ? despite higher energy costs
? thanks to improved cost structure and product
portfolio
EBIT
SALES
23
32
Millions of EUR
Millions of EUR
non-audited figures
5
EPS 40 in H1/00
In EUR/share
3.5 3.0 2.5 2.0 1.5 1.0 0.5 0
40
non-audited figures
6
NET CURRENT EARNINGS 40 in H1/00 double
digit growth above target
Millions of EUR
40
non-audited figures
7
CASH FLOW 23 in H1/00 again double digit
growth
Millions of EUR
23 after 41 net earnings 10
depreciation (? investments)
non-audited figures
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GROUP CAPEX, ACQUISITIONS AND RD TOTAL CAPEX
RD 36 CAPEX 44
in 99 versus 98
Millions of EUR
1,405
of which 66 for Pharmaceuticals
2000/95 75
1,264
1,027
RD expenses
999
932
804
14
Capitalexpenditures
44
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CAPEX, ACQUISITIONS AND RD BY SECTOR - of
Group budgets, average 99/00 -

• Pharmaceuticals 41
• Chemicals 21
• Plastics 26
• Processing 12

Millions of EUR
542
X 2.3
434
RD
314
307
280
258
238
230
231
149
135
Capex andAcquisitions
105
Processing
Chemicals
Plastics
Pharmaceuticals
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STRONG FINANCIAL STRUCTURENET DEBT TO EQUITY
RATIO
(Net debt / total equity)
1995
1997
1998
1996
1999
2000
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II. H1/00 IS THE RESULT OF A CONSISTENT GROWTH
STRATEGY

• LEADERSHIP in Chemicals, Plastics and Processing
  through - INNOVATION Chemicals and
  Plastics Specialties become quite material to
  overall Groups earnings
• - COMPETITIVENESS Restructurings in
  Vinyls and Chlorinated products bear fruits
• which allows
• A FASTER DEVELOPMENT in Pharmaceuticals

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GLOBALLY SUCCESSFUL GROWTH STRATEGY (EPS
40)

• PLASTICS ? strong EBIT increase (about X 3)
• CHEMICALS ? EBIT 4
• PROCESSING ? EBIT stable
• PHARMACEUTICALS
• ? Sales 14
• ? Intensive marketing and RD
  programs weight on H1/00 Pharma EBIT
• ? Stronger Pharma EBIT expected in H2/00
  (versus H2/99)

despite higher energy and raw materials costs
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II.1. SOLVAY IS INTENSIFYING ITS STRATEGIC
DEVELOPMENTS IN PHARMACEUTICALS
H1/00 versus H1/99 M EUR

• Sales 14 86
• Marketing expenses 27
• for the launch of 5 drugs (US, Japan, Europe)
• RD expenses 17
• for new products in the 3 next years

98
14
STRONG ORGANIC GROWTH Pharmaceuticals sales
14 in H1/00
H1/00 vs H1/99
Psychiatry 8Gastroenterology 14 HRT
products 18 Cardiology 27
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INTENSIVE MARKETING AND PROMOTION EFFORTS
27 Five drugs launched since H1/99

• Peak sales estimate (M EUR)
• LUVOX (in Japan) 200
• TEVETEN (world) and ACEON (in the US) 400-500
• ANDROGEL (in the US) 50
• CENESTIN (in the US) with Duramed Inc.
• additional EUR 600 M sales expected
• in the next 3 years

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GLOBAL SALES FORCE EXPANSION ? USA doubling
sales force and entering the Primary Care
market ? Japan 1,700 sales reps for Luvox

Number of sales representatives
World
5540
X 1.9
2885
Japan (Incl. MEIJI Fujisawa)
1700
1100
USA
460
X 2.4
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II.2. CHEMICALS SECTOR
Fluorinated products ? in prices and volumes
and in specialties H2O2 ? cost reductions and
in ultra-pure H2O2 Fillers ? in Precipitated
Calcium Carbonate (Winnofil) Caprolactones ?
in CAPA polymers Barium/Strontium ? in high
technical/ultra-purity qualities Chlorinated
Products ? through restructuring measures
Detergents ? in percarbonates Soda
ash difficult market and strong
competition Salt poor market and restructuring
underway
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FLUORINATED PRODUCTS double digit growth in
H1/00 compared to H1/99

• STRATEGY ? Growth in Specialties (e.g. pharma
  grades)? Competitive position (world n4,
  Europe n2) strengthened through geographic
  and portfolio developments
• Innovation ? Field tests for HFC - 365 mfc
  (3rd generation substitute) running very
  well? Solkane 227 used in aerosols approved by
  the EU health authorities ? Pilot study in
  France for the production of HFC-134a pharma
  grade
• Competitiveness ? Solkane 134a (for
  refrigerant) capacity to be doubled ? Acquisition
  s of Chemtech (USA) and Norfluor (Mexico) ?
  better regional mix and direct access to raw
  material balanced product ? more portfolio
  (specialties, inorganic/organic fluorides, ...)

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II. 3. PLASTICS SECTOR EBIT X 2.9
? Vinyls (PVC) ? PP compounds ? Specialty
polymers ? Polyolefins
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PVC EUROPE (Suspension)
EUR/ton
PVC price
Ethylene price
PVC margins
STRONG MARGINS 70 in H1/00vs H1/99
Jul 00
Jul 99
Source TECNON, July 2000
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PVC EUROPEIMPROVED COMPETITIVENESS

• SOLVIN venture company with BASF
• synergies (e.g. raw material supply, commercial
  strength, market rationalization, )
• acquisition with TOTALFINAELF of Shell Chemies
  activities in France
• rationalization (with closures in the
  Vinyls-Chlorine supply chain)
• Solvay and TOTALFINAELF
• joint production at Solvays Martorell site
  (Spain)

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HDPE global competitive position ? EUROPE
shared-production and RD agreements with
TOTALFINAELF ? USA Agreement with PHILLIPS
CHEVRON PP compounds ? excellent performance
at Solvay Engineered Polymers Inc. in the USA for
automotive applications HDPE compounds ?
acquisition of Padanaplast in Italy
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EUR/ton
HDPE price
Ethylene price
HDPE margins
Jul 00
Jul 99
Source TECNON, July 2000
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EUR/ton
PP price
Propylene price
PP margins
1999
Jul 99
Jul 00
2000
Source TECNON, July 2000
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SPECIALTY POLYMERSdouble digit growth in H1/00
compared H1/99

• STRATEGY ? growth through RD and market
  development? geographic expansion
• Innovation ? new applications for fluorinated
  SOLEF in the oil industry, telecommunication,
  ...
• ? several new IXAN barrier resins
• Competitiveness ? Europe - worldwide PVDC
  activities managed by Solvin - polyarylamide
  capacitity increase at Rheinberg (Germany)
• ? USA joint venture with Dyneon to produce
  VF2-monomer (start-up end 1999) and PVDF
  SOLEF (start-up in 2000) in Alabama

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II. 4. PROCESSING SECTOR STABLE EBIT
Automotive ? Fuel systems ? ? in Europe
and in the US ? set up of Inergy (JV with
Plastic Omnium) (incl. Korean activities
acquired by PO and new initiatives in
Asia) ? Air Intake Systems strong ? Pipes
? Strong demand ? ? Margins ? despite strong
raw materials price increase ? Favorable
prospects in the US through Jet Stream Films
Strong demand ? for medical uses and swimming
pools
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INERGY AUTOMOTIVE SYSTEMSnr. 1 in the world,
Europe, North America and Asia
? about 15 countries and 30 sites ? global
organization based on customer businesses
worldwide e.g. BMW, Daimler-Chrysler, Daewoo,
General Motors, Hyundai-Kia, Peugeot Citroën,
Porsche, Renault-Nissan, Volkswagen, ? sales of
approximately 1 Bn EUR ? operational in
September 2000 ? Complementarity of the
geographical, commercial, industrial and
technological resources of both Solvay and
Plastic Omnium
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III. 2000 PROSPECTS
 The results of the Group for the full year
2000 are very encouraging 
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and Innovation