Rhodia (NYSE:RHA)
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Rhodia (NYSE:RHA)
-- Net Sales(a) up 4.5%, at 1,321 million euros
-- Recurring EBITDA(b) Margin of 14.2%; an increase of 18% in
recurring EBITDA to 188 million euros from 159 million euros
in the second quarter 2005
-- Strong growth in Operating Profit, to 100 million euros from
35 million euros in the second quarter 2005
-- Net Income of 78 million euros, compared to a 196 million
euros loss in the second quarter 2005.
Summary income statement
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*T
Q2 2005 Q2 2006 % Variation
In millions of euros
After impact of
discontinued operations
----------------------------------------------------------------------
Net Sales(a) 1,264 1,321 +4.5%
----------------------------------------------------------------------
Recurring EBITDA(b) 159 188 +18%
----------------------------------------------------------------------
Recurring EBITDA Margin 12.6% 14.2% -
----------------------------------------------------------------------
Operating Profit 35 100 +186%
----------------------------------------------------------------------
Income/(loss) before income tax (70) 45 -
----------------------------------------------------------------------
Profit/(loss) from continuing
operations (96) 90 -
----------------------------------------------------------------------
Discontinued operations (100) (12) -
----------------------------------------------------------------------
Net Income/(loss) (196) 78 -
----------------------------------------------------------------------
*T
1. Results in line with 2006 objectives
Rhodia (NYSE:RHA) reported net sales(a) up 4.5% to 1,321 million
euros in the second quarter 2006 from 1,264 million euros a year
earlier, primarily reflecting the impact of a 3.2% increase in prices.
Operating performance improved, with recurring EBITDA(b) up 18% at
188 million euros compared with 159 million euros in the second
quarter 2005. Recurring EBITDA Margin rose to 14.2%, illustrating the
Group's ability to pass on price increases to offset the rise in the
cost of raw materials.
Operating Profit grew strongly to 100 million euros from 35
million euros in the second quarter 2005.
The Financial Result showed a significant improvement at (55)
million euros in the second quarter 2006, compared to (105) million
euros in the prior-year period. Interest expenses decreased by 19
million euros. In the second quarter 2005, the Financial Result had
also been impacted by non-recurring items amounting to 28 million
euros.
Net Income stood at 78 million euros compared to a net loss of 196
million euros in the second quarter 2005. Net Income in the second
quarter 2006 included the recognition of 60 million euros of deferred
tax assets, due to a favourable outlook for future profitability in
the USA; a further positive impact of 56 million euros is expected in
the second half of the year.
2. Consolidated net debt stable at 2.1 billion euros
Capital Expenditure totaled 66 million euros in the second quarter
2006. The Working Capital Requirement increased by 30 million euros,
in preparation for maintenance shutdowns scheduled in the third
quarter. The ratio of Working Capital Requirement to total sales
improved significantly to 12.8% from 14.3% at June 30, 2005.
Free Cash Flow(c) was negative at (38) million euros taking into
account 24 million euros of restructuring cash costs.
Consolidated Net Debt was stable at 2.1 billion euros at June 30,
2006 compared with the March 31, 2006 figure.
3. Continued refocusing of the business portfolio
With the strategy of Rhodia Polyamide focusing on "Intermediates"
and "Engineering Plastics", the Group has reclassified the European
"Industrial Fibers" business under "Discontinued operations". The
recurring EBITDA generated by this business, amounting to 7 million
euros for the second quarter 2006 and 25 million euros for the full
year 2005, is no longer included in the calculation of the Group's
recurring EBITDA.
4. Outlook
In the second half of the year, market conditions should remain
satisfactory in the Group's businesses and operating regions. In an
environment of high raw material and energy costs, Rhodia is
continuing its policy of increasing prices. The usual seasonality is
expected in the third quarter.
The Group remains confident it will meet its 2006 objectives:
-- A recurring EBITDA Margin of at least 13%.
-- A positive Net Income for 2006.
-- A ratio of Net Debt to recurring EBITDA of less than 2.9
times.
Looking further ahead, the Group reiterates its medium-term
objectives.
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(a) Excluding other revenues
(b) Before restructuring, amortization and depreciation, other
operating income and expense, and capital gains and losses on
divestments
(c) Defined as "net cash provided by operating activities" less
"additions to property, plant and equipment" and "other capital
investments"
This press release and a presentation of the second quarter results
are available on www.rhodia.com
*T
This press release contains elements that are not historical facts
including, without limitation, certain statements on future
expectations and other forward-looking statements. Such statements are
based on management's current views and assumptions and involve known
and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those anticipated.
Rhodia is a global specialty chemicals company recognized for its
strong technology positions in the Performance Materials, Functional
Chemicals and Organics and Services clusters. Partnering with major
players in the automotive, electronics, pharmaceuticals,
agrochemicals, consumer care, tires, and paints and coatings markets,
Rhodia offers tailor-made solutions combining original molecules and
technologies to respond to customers' needs. Rhodia subscribes to the
principles of Sustainable Development communicating its commitments
and performance openly with stakeholders. Rhodia generated sales of 5
billion euros in 2005 and employs around 19,500 people worldwide.
Rhodia is listed on Euronext Paris and the New York Stock Exchange.
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*T
Results Fact Sheet: Q2 2006
(Note new discontinued operations: Polyamide European industrial
fibers placed in discontinued operations as of June 30th, 2006
representing a reclassification of 7million euros of Recurring EBITDA
in Q2 06)
Income Statement
----------------------------------------------------------------------
Million euros Q2 2005 Q2 2006 Variation
----------------------------------------------------------------------
Net Sales 1,264 1,321 4.5%
----------------------------------------------------------------------
Other revenue 93 98
----------------------------------------------------------------------
Recurring EBITDA 159 188 18.2%
Recurring EBITDA Margin (a) 12.6% 14.2%
----------------------------------------------------------------------
Depreciation & Amortization (86) (81)
Other Gains and Losses (15) -
Restructuring Costs (23) (7)
----------------------------------------------------------------------
Operating Profit 35 100
----------------------------------------------------------------------
Financial Results (105) (55)
----------------------------------------------------------------------
Income/(loss) before income tax (70) 45
----------------------------------------------------------------------
Income tax (26) 45
Income/(loss) from
continuing operations (96) 90
Income/(loss) from
discontinued operations (100) (12)
Net Income/(loss) (196) 78
----------------------------------------------------------------------
Net Income/(loss) (Group Share) (197) 77
----------------------------------------------------------------------
Minority interests 1 1
----------------------------------------------------------------------
----------------------------------------------------------------------
Million euros H1 2005 H1 2006 Variation
----------------------------------------------------------------------
Net Sales 2,457 2,631 7.1%
----------------------------------------------------------------------
Other revenue 231 258
----------------------------------------------------------------------
Recurring EBITDA 322 366 13.7%
Recurring EBITDA Margin (a) 13.1% 13.9%
----------------------------------------------------------------------
Depreciation & Amortization (172) (171)
Other Gains and Losses (15) (6)
Restructuring Costs (28) (12)
----------------------------------------------------------------------
Operating Profit 107 177
----------------------------------------------------------------------
Financial Results (229) (114)
----------------------------------------------------------------------
Income/(loss) before income tax (122) 63
----------------------------------------------------------------------
Income tax (34) 33
Income/(loss) from
continuing operations (156) 96
Income/(loss) from
discontinued operations (114) (53)
Net Income/(loss) (270) 43
----------------------------------------------------------------------
Net Income/(loss) (Group Share) (269) 41
----------------------------------------------------------------------
Minority interests (1) 2
----------------------------------------------------------------------
Net Sales Recurring EBITDA
Million euros Q2 2005 Q2 2006 Variation Q2 2005 Q2 2006 Variation
--------------------------------------------------------------------
RHODIA 1,264 1,321 4.5% 159 188 18.2%
POLYAMIDE 441 478 8.4% 71 77 8.5%
ACETOW 105 113 7.6% 27 26 (3.7)%
NOVECARE 239 239 28 26 (7.1)%
SILCEA 211 214 1.4% 25 38 52.0%
ECO SERVICES 55 60 9.1% 18 23 27.8%
ORGANICS 225 229 1.8% 8 21 162.5%
ENERGY SERVICES 7 3
CORPORATE &
Others (12) (12) (25) (26) 4.0%
--------------------------------------------------------------------
Operating Profit
Million euros Q2 2005 Q2 2006
--------------------------------
RHODIA 35 100
POLYAMIDE 38 51
ACETOW 18 21
NOVECARE 20 17
SILCEA 4 21
ECO SERVICES 12 19
ORGANICS (6) 8
ENERGY SERVICES 5 3
CORPORATE &
Others (56) (40)
--------------------------------
(all figures are in million euros after discontinued operations)
Sales and Recurring EBITDA of new discontinued operations:
Polyamide European industrial fibers
Q1 05 Q2 05 Q3 05 Q4 05 FY 05 Q1 06 Q2 06
----------------------------------------------------------------------
Net Sales 45 45 34 39 163 44 44
Recurring
EBITDA 6 6 5 8 25 7 7
----------------------------------------------------------------------
Net Financial Debt
December 31, 2005 March 31, 2006 June 30, 2006
----------------------------------------------------------------------
2,089 2,107 2,070
2006 Targets Mid term Targets
----------------------------------------------------------------------
Recurring EBITDA margin* Recurring EBITDA margin*
(greater than) 13% (greater than) 15%(b)
Positive Net Income Net Debt / Recurring EBITDA
(less than) 2.2x(b)
Net Debt / Recurring EBITDA
(less than) 2.9x
----------------------------------------------------------------------
(a) Calculated as recurring EBITDA / Net Sales
(b) Excluding CER projects
Results Fact Sheet: Q2 2006
(all figures are in million euros after discontinued operations)
----------------------------------------------------------------------
-- Strong volumes & sustained growth in
Intermediates and Engineering Plastics
POLYAMIDE -- Price increases in local currency +4m euros offset
raw materials -3m euros
-- Further price increases underway
----------------------------------------------------------------------
ACETOW -- Price rises offset most of raw material cost
increases
----------------------------------------------------------------------
-- Price rises offset raw material cost increases
NOVECARE -- Slow volumes in agro market
-- Further fixed cost savings
----------------------------------------------------------------------
-- Strong volumes
SILCEA -- Favourable pricing more than offset raw material
cost increases
----------------------------------------------------------------------
ECO SERVICES -- Positive impact of price indexation mechanism on
natural gas
----------------------------------------------------------------------
-- Restructuring delivers further significant fixed
ORGANICS cost reduction
-- Price rises more than offset raw material cost
increases
----------------------------------------------------------------------
-- Trading platform JV with Societe Generale now in
place
-- CER projects on schedule
ENERGY SERVICES ------------------------------------------------------
-- No cogeneration activity (seasonal)
Q2 2006 -- Continuing focus on energy supply
optimization
----------------------------------------------------------------------
Net Foreign Net
Sales Foreign Exchange Sales
Q2 Exchange Volume Selling transaction Q2
2005 Scope conversion & mix Price effect 2006
----------------------------------------------------------------------
RHODIA 1,264 (16) 31 21 40 (19) 1,321
POLYAMIDE 441 (3) 26 28 4 (18) 478
ACETOW 105 0 2 1 4 1 113
NOVECARE 239 (9) 1 1 9 (2) 239
SILCEA 211 (8) 2 5 5 (1) 214
ECO SERVICES 55 0 0 (4) 9 0 60
ORGANICS 225 (3) 1 (4) 9 1 229
ENERGY SERVICES
CORPORATE &
Others (12) 7 (1) (6) 0 0 (12)
----------------------------------------------------------------------
Recurring Foreign Volume
EBITDA Scope Exchange & mix
Q2 2005 conversion
-------------------------------------------------------------
RHODIA 159 (1) 5 6
POLYAMIDE 71 (3) 5 11
ACETOW 27 0 0 0
NOVECARE 28 (2) 0 (2)
SILCEA 25 1 0 3
ECO SERVICES 18 0 0 (1)
ORGANICS 8 (1) 0 (1)
ENERGY SERVICES 7 0 0 0
CORPORATE &
Others (25) 4 0 (4)
-------------------------------------------------------------
Recurring
Raw Recurring EBITDA
Selling materials Fixed EBITDA Margin(b)
Price(a) & Energy Costs Q2 2006 Q2 2006
---------------------------------------------------------------
RHODIA 20 (12) 11 188 14.2%
POLYAMIDE (13)(a) 11(a) (5) 77 16.1%
ACETOW 4 (5) 0 26 23.0%
NOVECARE 7 (8) 3 26 10.9%
SILCEA 5 (4) 8 38 17.8%
ECO SERVICES 8 (1) (1) 23 38.3%
ORGANICS 9 (2) 8 21 9.2%
ENERGY SERVICES 0 (3) (1) 3
CORPORATE &
Others 0 0 (1) (26)
---------------------------------------------------------------
(a)Including FX transaction effect
(b) Calculated as recurring EBITDA / Net Sales
a: Polyamide: Local currency price increases +4m euros
Local currency raw material costs -3m euros
Results Fact Sheet: H1 2006 overview
(all figures are in million euros after discontinued operations)
Net Sales
H1 2005 H1 2006 Variation
---------------------------------------------------
RHODIA 2,457 2,631 7.1%
POLYAMIDE 860 942 9.5%
ACETOW 197 222 12.7%
NOVECARE 467 485 3.9%
SILCEA 406 430 5.9%
ECO SERVICES 103 116 12.6%
ORGANICS 453 461 1.8%
ENERGY SERVICES
CORPORATE & Others (29) (25) (13.8)%
---------------------------------------------------
Recurring EBITDA Operating Profit
H1 2005 H1 2006 Variation H1 2005 H1 2006
----------------------------------------------------------------------
RHODIA 322 366 13.7% 107 177
POLYAMIDE 145 134 (7.6)% 90 83
ACETOW 50 56 12.0% 33 42
NOVECARE 56 55 (1.8)% 39 38
SILCEA 50 70 40.0% 15 36
ECO SERVICES 29 37 27.6% 18 26
ORGANICS 26 38 46.2% 12
ENERGY SERVICES 9 25 20
CORPORATE & Others (43) (49) 14.0% (88) (80)
----------------------------------------------------------------------
Net Foreign Net
Sales Foreign Exchange Sales
H1 Exchange Volume Selling transaction H1
2005 Scope conversion & mix Price effect 2006
----------------------------------------------------------------------
RHODIA 2,457 (29) 121 49 67 (34) 2,631
POLYAMIDE 860 (6) 79 58 (10) (39) 942
ACETOW 197 0 7 4 11 3 222
NOVECARE 467 (17) 15 1 20 (1) 485
SILCEA 406 (14) 9 17 11 1 430
ECO SERVICES 103 (1) 5 (6) 15 0 116
ORGANICS 453 (4) 8 (18) 20 2 461
ENERGY SERVICES
CORPORATE &
Others (29) 13 (2) (7) 0 0 (25)
----------------------------------------------------------------------
Recurring Foreign Volume Selling
EBITDA Scope Exchange & mix Price(a)
H1 2005 conversion
--------------------------------------------------------------------
RHODIA 322 (1) 17 21 32
POLYAMIDE 145 (6) 14 18 (47)
ACETOW 50 (1) 2 2 14
NOVECARE 56 (4) 3 (5) 18
SILCEA 50 0 2 9 12
ECO SERVICES 29 1 2 (2) 13
ORGANICS 26 (5) 1 (9) 22
ENERGY SERVICES 9 10 0 7 0
CORPORATE &
Others (43) 2 (5) 1 0
--------------------------------------------------------------------
Recurring
Raw Recurring EBITDA
materials Fixed EBITDA Margin(b)
& Energy Costs H1 2006 H1 2006
-----------------------------------------------------------
RHODIA (42) 17 366 13.9%
POLYAMIDE 20 (10) 134 14.2%
ACETOW (12) 1 56 25.2%
NOVECARE (19) 6 55 11.3%
SILCEA (8) 5 70 16.3%
ECO SERVICES (3) (3) 37 31.9%
ORGANICS (17) 20 38 8.2%
ENERGY SERVICES (3) 2 25
CORPORATE &
Others 0 (4) (49)
-----------------------------------------------------------
(a) Including FX transaction effect
(b) Calculated as recurring EBITDA / Net Sales
Results Fact Sheet: H1 05 & 06 results
adjusted for Q2 06 discontinued operations
RHODIA Q1 2005 Q1 2006 Q2 2005 Q2 2006 H1 2005 H1 2006
----------------------------------------------------------------------
(M Euros)
Net Sales 1,193 1,310 1,264 1,321 2,457 2,631
Recurring EBITDA 163 178 159 188 322 366
% Sales(a) 13.7% 13.6% 12.6% 14.2% 13.1% 13.9%
Operating Profit 72 77 35 100 107 177
----------------------------------------------------------------------
----------------------------------------------------------------------
POLYAMIDE
(M Euros)
Net Sales 419 464 441 478 860 942
Recurring EBITDA 74 57 71 77 145 134
% Sales(a) 17.7% 12.3% 16.1% 16.1% 16.9% 14.2%
Operating Profit 52 32 38 51 90 83
----------------------------------------------------------------------
ACETOW
(M Euros)
Net Sales 92 109 105 113 197 222
Recurring EBITDA 23 30 27 26 50 56
% Sales(a) 25.0% 27.5% 25.7% 23.0% 25.4% 25.2%
Operating Profit 15 21 18 21 33 42
----------------------------------------------------------------------
NOVECARE
(M Euros)
Net Sales 228 246 239 239 467 485
Recurring EBITDA 28 29 28 26 56 55
% Sales(a) 12.3% 11.8% 11.7% 10.9% 12.0% 11.3%
Operating Profit 19 21 20 17 39 38
----------------------------------------------------------------------
SILCEA
(M Euros)
Net Sales 195 216 211 214 406 430
Recurring EBITDA 25 32 25 38 50 70
% Sales(a) 12.8% 14.8% 11.8% 17.8% 12.3% 16.3%
Operating Profit 11 15 4 21 15 36
----------------------------------------------------------------------
ECO SERVICES
(M Euros)
Net Sales 48 56 55 60 103 116
Recurring EBITDA 11 14 18 23 29 37
% Sales(a) 22.9% 25.0% 32.7% 38.3% 28.2% 31.9%
Operating Profit 6 7 12 19 18 26
----------------------------------------------------------------------
ORGANICS
(M Euros)
Net Sales 228 232 225 229 453 461
Recurring EBITDA 18 17 8 21 26 38
% Sales(a) 7.9% 7.3% 3.6% 9.2% 5.7% 8.2%
Operating Profit 6 4 (6) 8 0 12
----------------------------------------------------------------------
ENERGY SERVICES
(M Euros)
Recurring EBITDA 2 22 7 3 9 25
Operating Profit (5) 17 5 3 0 20
----------------------------------------------------------------------
CORPORATE &
OTHERS
(M Euros)
Sales &
intercompany
sales
eliminations (17) (13) (12) (12) (29) (25)
Recurring EBITDA (18) (23) (25) (26) (43) (49)
Operating Profit (32) (40) (56) (40) (88) (80)
----------------------------------------------------------------------
(a) Calculated as recurring EBITDA / Net Sales
Results Fact Sheet: 2005 Enterprise quarterly results
adjusted for Q2 06 discontinued operations
RHODIA Q1 2005 Q2 2005 Q3 2005 Q4 2005 FY 2005
------------------------------------------------------------
(M Euros)
Net Sales 1,193 1,264 1,179 1,286 4,922
Recurring EBITDA 163 159 113 134 569
% Sales(a) 13.7% 12.6% 9.6% 10.4% 11.6%
Operating Profit 72 35 14 (38) 83
------------------------------------------------------------
------------------------------------------------------------
POLYAMIDE
(M Euros)
Net Sales 419 441 406 444 1,710
Recurring EBITDA 74 71 46 52 243
% Sales(a) 17.7% 16.1% 11.3% 11.7% 14.2%
Operating Profit 52 38 21 24 135
------------------------------------------------------------
ACETOW
(M Euros)
Net Sales 92 105 104 109 410
Recurring EBITDA 23 27 27 23 100
% Sales(a) 25.0% 25.7% 26.0% 21.1% 24.4%
Operating Profit 15 18 18 14 65
------------------------------------------------------------
NOVECARE
(M Euros)
Net Sales 228 239 226 242 935
Recurring EBITDA 28 28 20 20 96
% Sales(a) 12.3% 11.7% 8.8% 8.3% 10.3%
Operating Profit 19 20 4 10 53
------------------------------------------------------------
SILCEA
(M Euros)
Net Sales 195 211 203 201 810
Recurring EBITDA 25 25 25 27 102
% Sales(a) 12.8% 11.8% 12.3% 13.4% 12.6%
Operating Profit 11 4 0 5 20
------------------------------------------------------------
ECO SERVICES
(M Euros)
Net Sales 48 55 55 51 209
Recurring EBITDA 11 18 18 10 57
% Sales(a) 22.9% 32.7% 32.7% 19.6% 27.3%
Operating Profit 6 12 13 5 36
------------------------------------------------------------
ORGANICS
(M Euros)
Net Sales 228 225 205 254 912
Recurring EBITDA 18 8 (3) 11 34
% Sales(a) 7.9% 3.6% (1.5)% 4.3% 3.7%
Operating Profit 6 (6) 3 (26) (23)
------------------------------------------------------------
ENERGY SERVICES
(M Euros)
Recurring EBITDA 2 7 1 15 25
Operating Profit (5) 5 1 12 13
------------------------------------------------------------
CORPORATE &
OTHERS
(M Euros)
Sales &
intercompany
sales
eliminations (17) (12) (20) (15) (64)
Recurring EBITDA (18) (25) (21) (24) (88)
Operating Profit (32) (56) (46) (82) (216)
------------------------------------------------------------
(a) Calculated as recurring EBITDA / Net Sales
Consolidated income statements as of June 30, 2006
(in millions Second quarter First semester Full year
of euros) ended June 30, ended June 30,
----------------------------------------------------------------------
2006(a) 2005(a) 2006 2005 2005
----------------------------------------------------------------------
Net sales 1,321 1,264 2,631 2,457 4,922
----------------------------------------------------------------------
Other revenue 98 93 258 231 454
----------------------------------------------------------------------
Cost of sales (1,140)(1,106) (2,356) (2,200) (4,482)
Administrative
and selling
expenses (139) (140) (277) (270) (561)
Research and
development
expenses (33) (32) (61) (62) (121)
Restructuring
costs (7) (28) (12) (33) (86)
Other operating
income/(expenses) (16) (6) (16) (43)
----------------------------------------------------------------------
Operating
profit/(loss) 100 35 177 107 83
Financial income 30 23 68 61 127
Finance costs (86) (104) (184) (237) (496)
Foreign exchange
gains/(losses) 1 (24) 2 (53) (67)
Share of
profit/(losses)
of associates
----------------------------------------------------------------------
Income/(loss)
before income tax 45 (70) 63 (122) (353)
Income tax expense 45 (26) 33 (34) (53)
----------------------------------------------------------------------
Income/(loss)
from continuing
operations 90 (96) 96 (156) (406)
loss from
discontinued
operations (12) (100) (53) (114) (209)
----------------------------------------------------------------------
Net Income/(loss) 78 (196) 43 (270) (615)
----------------------------------------------------------------------
Attributable to:
Equity holders of
Rhodia SA 77 (197) 41 (269) (616)
Minority interests 1 1 2 (1) 1
----------------------------------------------------------------------
Income/(loss) per
share from
continuing
operations (in
euro) - basic
and diluted 0.08 (0.25) (0.63)
Income/(loss) per
share (in euro)
- basic and
diluted 0.03 (0.43) (0.95)
---------------------------------------------------------------------
Weighted average
number of shares
before dilution 1,186,857,342 627,582,158 645,635,891
Weighted average
number of shares
after dilution 1,179,544,778 627,582,158 645,635,891
---------------------------------------------------------------------
(a) unaudited
Consolidated balance sheets as of June 30, 2006
Assets
----------------------------------------------------------------------
(in millions of euros) June 30 2006 December 30 2005
----------------------------------------------------------------------
Property, plant & equipment 1,958 2,135
Goodwill 227 244
Other intangible assets 180 154
Investments in associates 4 4
Other non-current financial assets 165 164
Deferred tax assets 129 83
----------------------------------------------------------------------
Non-current assets 2,663 2,784
----------------------------------------------------------------------
Inventories 653 630
Income tax receivable 25 20
Trade and other receivables 1,085 1,188
Derivative financial instruments 23 42
Other current financial assets 10 5
Cash and cash equivalents 351 920
Assets classified as held for sale 173 57
----------------------------------------------------------------------
Current assets 2,320 2,862
----------------------------------------------------------------------
TOTAL ASSETS 4,983 5,646
----------------------------------------------------------------------
Liabilities and shareholders' equity
----------------------------------------------------------------------
(in millions of euros) June 30 2006 December 30 2005
----------------------------------------------------------------------
Share capital 1,204 1,177
Additional paid-in capital 22 570
Other reserves 140 141
Deficit (1,839) (2,580)
----------------------------------------------------------------------
Equity attributable to equity holders
of Rhodia SA (473) (692)
Minority interests 25 26
----------------------------------------------------------------------
Total equity (448) (666)
----------------------------------------------------------------------
Borrowings 1,930 1,975
Retirement benefits and similar
obligations 1,122 1,269
Provisions 280 297
Deferred tax liabilities 23 34
Other non-current liabilities 65 46
----------------------------------------------------------------------
Non-current liabilities 3,420 3,621
----------------------------------------------------------------------
Borrowings 501 1,039
Derivative financial instruments 14 14
Retirement benefits and similar
obligations 64 81
Provisions 140 204
Income tax payable 34 31
Trade and other payables 1,086 1,271
Liabilities associated with assets
classified as held for sale 172 51
----------------------------------------------------------------------
Current liabilities 2,011 2,691
----------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 4,983 5,646
----------------------------------------------------------------------
Consolidated statements of cash flows as of June 30, 2006
First semester
ended June 30,
----------------------------------------------------------------------
(in millions of euros) 2006 2005
----------------------------------------------------------------------
Net loss (Group Share) 43 (270)
Adjustments for:
Depreciation, amortization and impairment of
long-term assets 177 280
Net increase/(decrease) in provisions and
employee benefits (46) (21)
Net increase/(decrease) in financial provisions 2 32
Share of profit/(loss) of associates 0
Dividends received from associates 0
Other income and expense 2 (5)
Gain/(loss) on disposal of non-current assets 19 3
Income tax expense/(income) (53) 15
Foreign exchange losses/(gains) (3) 71
----------------------------------------------------------------------
Cash flow from operating activities before
changes in working capital 141 105
----------------------------------------------------------------------
Changes in working capital
- (Increase)/decrease in inventories and work
in progress (61) (10)
- (Increase)/decrease in trade and other
receivables 17 17
- Increase/(decrease) in trade and other payables (74) (70)
- Increase/(decrease) in other current assets and
liabilities (5) (147)
----------------------------------------------------------------------
Net cash from operating activities 18 (105)
----------------------------------------------------------------------
Purchases of property, plant and equipment (113) (109)
Purchases of other non-current assets (19) (12)
Proceeds on disposal of non-current assets 32 28
(Purchases of)/repayments of loans and financial
investments 4 (10)
----------------------------------------------------------------------
Net cash (used by) / from investing activities (96) (103)
----------------------------------------------------------------------
Proceeds from issue of shares, net of costs 36 0
Dividends paid (2) 0
New long-term borrowings, net of costs 4 645
Repayments of non-current borrowings, net of costs (502) (473)
Net increase/(decrease) in current borrowings (21) (183)
----------------------------------------------------------------------
Net cash (used by) / from financing activities (485) (11)
----------------------------------------------------------------------
Effect of foreign exchange rate changes (5) 32
----------------------------------------------------------------------
Net increase/(decrease) in cash and cash
equivalents (568) (187)
----------------------------------------------------------------------
Cash and cash equivalents at the beginning
of the year 920 612
Cash and cash equivalents at the end of the year 352 425
----------------------------------------------------------------------
*T