OUR STRATEGY FOR CHANGE

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OUR STRATEGY FOR CHANGE

• Further strategic moves to focus on
• faster development of Specialties in Chemicals,
  Plastics and Pharmaceuticals
• strengthening of our Leadership in all our
  activities

• Speech of M. Aloïs MICHIELSENChief Executive
  Officer- SHAREHOLDERS MEETING -SOLVAY
  S.A.June 7, 2001

2
NET CURRENT EARNINGS PAR SHARE(EUR/share)-
average growth over 5 five years 11/year -
EUR
2000/1996 57
5.20
5.08
4.38
2.4
16
3.79
2nd half
16
3.32
15
1st half
3
KEY FIGURES 2000


? in EUR
Millions over 1
year over 5 years EUR 00/99 00/96
Sales 8,863 13 27 EBIT 666 2
26 Taxes 123 - 29 - 21 Net current
earnings 433 2,4 51 Cash flow 984
3 20
4
PERFORMANCES BY SECTOR
- EBIT 2000 -
Chemicals EUR 233 M( 10 vs 1999)
Pharmaceuticals EUR 134 M(- 15 vs 1999)
35
20
H1/00 EUR 109 M H2/00 EUR 124 M
H1/00 EUR 23 M H1/00 EUR 111 M
Processing EUR 69 M(- 17 vs 1999)
Plastics EUR 230 M( 15 vs 1999)
35
10
H1/00 EUR 51 M H2/00 EUR 18 M
H1/00 EUR 196 M H2/00 EUR 34 M
EBIT 2000 EUR 666 millions
without PP
5
CHEMICALS SECTORSales and EBIT
2,585
In millions EUR
2,420
Sales
272
233
212
192
194
2nd half
EBIT
1st half
6
CHEMICALS PORTFOLIOCompetitiveness and
Specialties
Fluorinated Products others
Barium/ Strontium carbonates
Hydrogen Peroxide/ detergents
Electrolysis products/ Salt
Soda ash
33
33
30
28
19
19
In of sales
16
9
7
6
93 00 93 00 93 00 93 00 93
00
7
PLASTICS SECTORSales and EBIT
In millions EUR
Sales
230
205
192
200
87
2nd half
EBIT
1st half

without PP
8
PLASTICS PORTFOLIO Competitive partnerships and
growth of Specialties
Specialtypolymers (incl. Compounds)
PVC
Polyolefins
In of sales
93 00 93 00() 93 00
without PP since 2000
9
PROCESSING SECTORSales and EBIT
In millions EUR
Sales
83
69
75
62
2nd half
46
EBIT
1st half
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INERGY AUTOMOTIVE SYSTEMS ? n 1 in the world
in fuel systems ? 40 of worldwide market ? a
balanced global customer portfolio
- in of 2001 sales EUR 1 billion -
è LEADERSHIP POSITION IS A REAL STRENGTH
IN THE CURRENT DIFFICULT US AUTOMOTIVE CONTEXT
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PLASTICS PROCESSING PORTFOLIO Leadership, alone
or with partners and development of Specialties
Industrial Films
Automotive
Decoration ()
Pipes
In of sales
93 00 93 00 93 00 93 00
deconsolidated as of 2001
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PHARMACEUTICALS DEVELOPMENT
Average growth rate 15/year (twice the
industry average)
In M EUR
Sales (17 of Group Sales)
Marketing costs for the launch of 5 new drugs
2nd half
EBIT(20 of Group EBIT)
1st half
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FIVE NEW PRODUCTS LAUNCHED SINCE 99
important marketing and promotion efforts in 2000
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• LUVOX /DEPROMEL (Japan, with Fujisawa and Meiji
  Seika)
• TEVETEN (world) and ACEON (in the USA)
• ANDROGEL (in the USA)
• CENESTIN (in the USA), with Duramed Inc.
• ? additional EUR 600 M (50 vs 1999) sales
  potential in the next 3-4 years

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PHARMACEUTICALS STRATEGY

• Geographic growth of our existing drugs sales
• External growth through alliances, partnerships
  and acquisitions of products and companies
• RD effectiveness, alone or with partners 7
  molecules in pre-clinical development

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LEADERSHIP IN OUR MARKETS
SOLVAY is among the leaders for about 85 of its
sales(75 in 2000)
Market position
Europe US World
Digestives/Enzymes . 1 2 1Laxatives
. 1 2Antispasmodics
.. 1 1Irritable Bowel
Syndrome 1 - 1 Hormone Replacement Therapy
.. 4 2 3Antidepressants ... 13 9 11 Ob
sessive Compulsive Disorders 2Vertigo
(Ménières disease) .... 1 1 Soda ash
..... 1 1Hydrogen peroxide
.. 1 1Detergent (Persalts)
.... 1 1Fluor .... 2 4Bar
ium / Strontium carbonates. 1 1Caustic soda
..... 1 3Salt ... 1 4
High-Density Polyethylene (HD-PE) 1 3PVC
... 2 4High Performance Engineering
Polymers among world leaders HDPE fuel tanks
... 1 1Pipes and fittings (Pipelife)
... 3 6Waterproofing foils
.. 1 Medical foils .. 1
Pharmaceuticals
Chemicals
Plastics
Processing
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INVESTMENTS AND RD (incl. 2001 budget)
M EUR
1,602
of which 66 for Pharmaceuticals
1,265
1,172
RD expenses
1,027
932
Including BPsHigh Performance Polymers
Capitalexpenditures Acquisitions
() without PP
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STRONG FINANCIAL STRUCTURE
Moderate NET DEBT / EQUITY RATIO
(Net debt / total equity)
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SUSTAINABLE DEVELOPMENT
To protect People and the Environment

• To save resources Example Building of many
  PVC recycling units
• To better protect man and nature Example
  Creation around our largest plants, of
  industrial parks benefiting from our
  competencies and resources in Environment,
  Health and Safety
• To better serve society Example Research into
  light high-performance batteries for cars with
  electric engines

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2001 PROSPECTS
Chemicals should see an excellent first half for
2001 for almost all of its products. However, as
at the end of the year 2000, the first quarter of
2001 was very difficult in Plastics, aside from
specialties, especially in the USA. Processing
is suffering from the automobile industry crisis,
but is holding up due to wise globalization.
Finally, growth in sales in Pharmaceuticals is
being confirmed even though the immediate results
are being held down by research and marketing
costs, compliance costs in the USA and
reorganization. As announced, results from the
first half of 2001 will be lower than the record
levels of the first half of 2000. The second
half, however, should be higher than the second
half of 2000, according to our current estimates,
thus indicating an improving trend overall. The
complete year 2001, however, could be below the
levels reached in 2000 if the American economy
does not recover.
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and Innovation