PRESS CONFERENCE

1
SOLVAY GROUP 1st HALF 2002 RESULTS

• Net current earnings and net earnings up 15
• Strong growth in Pharmaceuticals and Plastics
• Integration of Ausimonts resultsas of January
  1, 2002

• PRESS CONFERENCE
• July 31, 2002

2
H1/02 HIGHLIGHTS

• CLEAR ILLUSTRATION OF OUR STRATEGY FOR CHANGE
• improvement of the quality of our portfolio
  through
• increased presence in pharma and specialties
• strengthened leadership and competitive position
• integration of Ausimonts fluorinated specialties
• IMPORTANT INCREASE
• OF EBIT/SALES MARGIN IN H1/02

3
INCREASE OF EBIT/SALES MARGIN IN H1/02
4
KEY FIGURES
M EUR H1/01 H1/02 H1/02 vs
H1/01 Sales 4,459 4,045 - 9EBIT 311 379
22 (EBIT/sales margin) 7 9.4 n.s. Net debt
expenses - 45 - 35 - 22 Taxes - 58 - 88
52 Results of HDPE - - 16 n.s.(recorded
according to the equity method) Net current
earnings 208 240 15 Net earnings 208 240
15 Depreciation 234 305 30 Cash
Flow 442 545 23 EPS 2.45 2.73 11 (net
current earnings per share in EUR)
() after limited review by external auditors
Deloitte Touche
5
INCREASE OF EBIT/SALES MARGIN IN H1/02 thanks to
PORTFOLIO RESHUFFLING

• TOTAL SALES - 9
• -10 sales due to the change of scope of
  consolidation, a.o.
• HDPE results recorded according to the equity
  method as ofJan. 1, 2002
• Sale of the air intake systems as of Dec. 31,
  2002
• NOT COMPLETELY OFFSET BY
• the integration of Ausimont as of January 1, 2002
• the integration of BPs Specialty polymers
• -1.6 sales, particularly due to the Mercosur
  currencies fluctuations
• TOTAL EBIT 22

6
NEGLIGIBLE BALANCE OF NET EXTRAORDINARY ITEMS in
H1/02
M EUR
Net extraordinary income 37 1. From the net
gain on sale of the US rightsin Teveten
anti-hypertensive to Biovail 2. From the sale of
the automotive air intake businessto
MannHummel 3. Others Net extraordinary
charges - 37 1. Amortization of intangible
assets related to Luvox 2. Adjustment of
provisions for losses resulting fromthe
mandatory divestments linked to the acquisition
of Ausimont and for restructurings 3. Others
0
7
FIRST INTEGRATION OF AUSIMONTS RESULTS as of
January 1, 2002

• The evolution of Ausimonts results
• and their contribution to the Groups results
• are in line with our expectations
• Breakdown of Ausimont PL between Chemicals and
  Plastics
• Fluoropolymers, fluoroelastomers and fluorofluids
  in the SBU Specialty Polymers (Plastics
  sector) ?about 80 of Ausimonts EBIT
• Fluorochemicals specialties and other
  chemicalsin the related SBUs of the Chemicals
  sector ?about 20 of Ausimonts EBIT
• Our aim Keep running successful integrated
  organization of Ausimont and implement synergies
  through general coordination of all fluorinated
  activities in Solvay

8
VERY SOUND BALANCE SHEET after the acquisition of
Ausimont
Net debt equity ratio
9
PERFORMANCES BY SECTOR- in of Group s H1/02
EBIT -
Chemicals 33(EUR 123 M)
Pharmaceuticals 25 (EUR 96 M)
Processing 13(EUR 49 M)
Plastics 29 (EUR 111 M)
Total H1/02 EBIT EUR 379 M
() after the limited review by external auditors
Deloitte Touche
10
H1/02 EBIT BY SECTOR

• ? PLASTICS
• (29 of H1/02 EBIT)
• ? Sales -28
• ? Good performances in PVC and increasein
  performancecompounds
• ? Integration ofAusimont fluorinatedspecialties
  (polymers,elastomers and fluids)

• CHEMICALS
• (33 of H1/02 EBIT)
• ? Sales -5
• ? Satisfactory performancesof soda ash but
  markeddecrease of caustic sodaprices

• ?PHARMACEUTICALS
• (25 of H1/02 EBIT)
• ? Sales 11( 19 in N. America)
• ? Success of recently launched drugs
  andgeographic expansion

• PROCESSING
• (13 of H1/02 EBIT)
• ? Sales -6
• ? Increasein all SBUs
• ? Selectivedevelopmentof our activities

- 24 (compared to very high H1/01)
63
23
118
H1/01 H1/02
H1/01 H1/02
H1/01 H1/02
H1/01 H1/02
CHEMICALS
PLASTICS
PROCESSING
PHARMACEUTICALS
11
PHARMACEUTICALS H1/02 EBIT 63

• Implementation of the STRATEGY
• Growth of existing/new drugs and geographic
  expansion? further marketing efforts, alone or
  with partners
• USCanada ( 19 sales in EUR)e.g. male and
  female HRT products (Androgel, Estratest,
  ) stomach ulcer and heartburn treatment
  (Pantoloc) in Canada
• EasternCentral Europe ( 22 sales in
  EUR)through important marketing efforts
• Further RD efforts e.g. cilansetron
  (Irritable Bowel Syndrome) in Phase III with
  Quintiles tedisamil (congestive heart failure)
  in Phase III DU127090 (Parkinson and Psychosis)
  in Phase II with Lundbeck SLV306 (congestive
  heart failure and hypertension) in Phase II

12
11 SALES INCREASE IN H1/02
Success of recently launched drugs
H1/02 M EUR vs H1/01

• Estratest 112 26
• Androgel 98 93
• Prometrium 34 10

H1/02 vs H1/01
M EUR

• Creon 71 10
• Pantoloc 48 31
• Rowasa 31 12
• Duspatal 33 14

GYNAECOLOGY 339 27 GASTRO-ENTEROLOGY 274
11 CARDIOLOGY 85 16 PSYCHIATRY 162 - 11

• Physiotens 25 10
• Teveten 22 30
• Aceon 14 58

• Luvox (world) 52 - 40
• Serc 42 7
• Marinol 25 2

13
CHEMICALS H1/02 EBIT - 24

• GOOD PERFORMANCES OF SODA ASH
• Europe - satisfactory demand- significant
  efforts to improve productivity and
  competitiveness at all sites
• USA weak demand but improved margins due to -
  lower energy costs - better balance between
  demand/supply
• significant increase of sodium bicarbonate
  specialty
• ESCO (joint venture in salt) favorable weather
  conditions and synergies
• ADVANCED FUNCTIONAL MINERALS
• ?? CAUSTIC SODA marked decrease of demand and
  price, but recently reversed trend
• ? weaker market conditions for the other SBUs

14
PLASTICS H1/02 EBIT 118

• Good performances in PVC
• in Europe and in Asia - satisfactory
  demand - margins improvement
• in Mercosur recovery thanks to the increased
  competitive position in Argentina (devaluation of
  the Peso)
• PERFORMANCE COMPOUNDS thanks to good volumes
• Weaker market conditions (e.g. electronics,
  telecommunications, aerospace) for SPECIALTY
  POLYMERS
• ? more than compensated by the integration of
  Ausimonts fluoropolymers, fluorofluids and
  fluoroelastomers as of January 1, 2002
• High-density polyethylene results (- EUR 16 M net
  current earnings)
• ? recorded according the equity method as of
  January 1, 2002
• ? pressures on prices and margins but clear
  improvement noted recently

15
PROCESSING H1/02 EBIT 23

• ? growth in all SBUs
• ? selective development of our activities
• INERGY AUTOMOTIVE SYSTEMS(joint venture in fuel
  systems)
• growth of the new models launched in 2001
• synergies from the joint venture
• INDUSTRIAL FILMS success of our
  specialtiese.g. swimming-pool liners, laminates
  of the recent Cova acquisition, ...
• PIPELIFE(joint venture in pipes and fittings)
• benefits from restructuring measures
• recovery in the US

16
2002 PROSPECTS
The outlook for the Groups resultsfor the full
year 2002 remains consistent with the trends
announced. For the whole of the 2002 fiscal
year, Solvay should record double-digit growth
in profits
17
CONCLUSION WE REAP THE BENEFITS OF OUR STRATEGY

• Faster development ofPHARMACEUTICALS and
  SPECIALTIES
• Competitive ESSENTIALS
• WORLD LEADERSHIP in our activities through
  continuous development oftheir competitiveness
  and the innovation

18
HIGHER PROPORTION OF SPECIALTIES AND
PHARMACEUTICALS
In of Group EBIT

• Accelerated shiftto higher margin Specialties
  with the acquisitionof Ausimont
• More efficient and more competitiveEssentials

Pharmaceuticalsand Specialties
Essentials
1995
2001
2002e
19
THE RECENT STRATEGIC CHANGES ? growth prospects ?
improvement of the quality of our portfolio
through high-margin activities? cyclicality and
results sensitivity to economic evolution
20
FORWARD LOOKING STATEMENT
To the extent that any statements made in this
presentation contain information that is not
historical, these statements are essentially
forward-looking. The achievement of
forward-looking statements contained in this
presentation is subject to risks and
uncertainties because of a number of factors,
including general economic factors, interest rate
and foreign currency exchange rate fluctuations
changing market conditions, product competition,
the nature of product development, impact of
acquisitions and divestitures, restructurings,
products withdrawals regulatory approval
processes and other unusual items. Consequently,
actual results may differ materially from those
expressed or implied by such forward-looking
statements. Forward-looking statements can be
identified by the use of words such as "expects,"
"plans," "will," "believes," "may," "could"
"estimates," "intends", "targets", "objectives",
"potential", and other words of similar meaning.
Should known or unknown risks or uncertainties
materialize, or should our assumptions prove
inaccurate, actual results could vary materially
from those anticipated. The Company undertakes no
obligation to publicly update any forward-looking
statements"
and Innovation