Brussels September 14, 2001

1
 A FUNDAMENTAL STRATEGIC CHANGE FOR SOLVAY 
Brussels - September 14, 2001 Analysts and
Investors Meeting
2
Welcome to the Solvay Analysts and
Investors Meeting
3
AGENDA

• INTRODUCTION a fundamental strategic change for
  SolvayA. Michielsen, CEO of Solvay
• FINANCIAL REVIEWR. Degrève, CFO of Solvay
• STRATEGIC TURNING POINT IN THE PLASTICS SECTORH.
  Lefebvre, General Manager for the Plastics sector
• VALUE CREATING STRATEGY IN PHARMACEUTICALS
• Expansion of global commercial platformJ.
  Wessolowski, Head of Pharmaceuticals Marketing
  Operations
• Pharmaceuticals RD for tomorrow s successW.
  Cautreels, Worldwide Head of RD Pharmaceuticals
  sector
• INNOVATION THROUGH NEW BUSINESS DEVELOPMENTA.
  Michielsen, CEO of Solvay

SOLVAY
4
 Introduction a fundamental strategic change
for Solvay  A. Michielsen, CEO of Solvay
5
FOCUSED GROWTH STRATEGY

• Faster development of PHARMACEUTICALS
• Faster development of SPECIALTIES
• gt half of 2001 EBIT and increasing
• COMPETITIVE ESSENTIALS
• WORLD LEADERSHIP? 85 of 2001 sales in
  markets where Solvay is among top 3

6
FASTER DEVELOPMENT OF PHARMACEUTICALS

• Sales growth over the last 5 years 15/year
  worldwide (twice the industry average)23/year
  in the US
• Leading position in niches
• Sustained RD efforts 16 of Pharma sales
• Doubling of sales force since 1998

7
FASTER DEVELOPMENT OF SPECIALTIESin Chemicals,
Plastics and Processingthrough internal and
external development

• Higher EBIT margin and ROI than the average
  chemicals and plastics (above 15)
• Double-digit sales growth
• Intensive RD programs

8
CHANGE IN SOLVAYS PRODUCTS PORTFOLIO
In of Group EBIT
Higher proportion of Pharmaceuticalsand
Specialties
gt 60
Pharmaceuticalsand Specialties
Essentials
1996
2001
2005
9
COMPETITIVE ESSENTIALS

• Leadership position
• A clear and flexible structure including Joint
  ventures/ Partnerships/Assets swaps in highly
  competitive essentials, e.g.
• In Salt joint venture with KS
• In PVC joint venture with BASF and
  partnership with TotalFinaElf
• In HD-PE joint ventures with BP
• Divestment in commodities where Solvay does not
  have a long-term competitive or leadership
  position, e.g.
• Polypropylene ( 12 in the world)
• Decoration (non profitable activities)

10
WORLD LEADERSHIP85 of 2001 sales where Solvay
is among the leaders

• In Essentials
• Soda Ash, Hydrogen peroxide, Barium/Strontium
  carbonates, Persalts, Caustic soda, Salt, PVC,
  HD-PE, ...
• In Pharmaceuticals niches
• in female and male HRT products, antispasmodics,
  gastrointenstinal enzymes, vertigo, ...
• In Specialties
• in Fluor, Specialty polymers, HDPE fuel systems,
  ...

11
CLEAR FINANCIAL OBJECTIVES

• Average annual growth of 10 of net current
  earnings
• 11 growth per year on average over 5 last years
• ROE (Return on Equity) of 15 as soon as possible
• 10.9 in 2000
• To increase dividend whenever possible and, if
  possible, not to decrease it
• 3.8 gross dividend yield in 2000
• No dividend cut in more than 15 years
• Average annual return of 11.8 over the last 10
  years

() sum of the increase of the share price and
the return of the dividend over the share price
at Dec. 31 each year
12
UNLOCKING SHAREHOLDER VALUE

• still valued as a pure chemicals company
• large discount on PHARMACEUTICALS VALUATION
  DESPITE growing visibility and potential
• SIGNIFICANT POTENTIAL SHAREHOLDER VALUE INCREASE
  FROM THE CURRENT MARKET CAPITALISATION
• CLEAR COMMITMENT TO DELIVER PHARMACEUTICALS VALUE
  TO SHAREHOLDERS

13
SOLVAY SHARES PERFORMANCES
FREE FLOAT of 74 Included in Euronext 100
index, international indexes (MSCI, )
7-sept-01
14
1st HALF 2001 RESULTS

• Net current earnings (EUR 208 M) down 18from
  the high level of the first half of 2000
• 2nd half of 2001 expected to be better than last
  years
• 14 higher than analysts  consensus

15
H1/01 DRIVERS

• Negative
• PLASTICS? poor results in HD-PE and PVC
• PROCESSING? difficult conditions on end- markets
  (e.g. automotive, construction)

• Positive
• PHARMACEUTICALS
• ? Sales 19 ( 34 in N. America) ? EBIT
  157? Success of recently launched drugs
  offsets Luvox patent expiry
• CHEMICALS
• ? EBIT 48
• ? ? in SPECIALTIES e.g. in fluorinated
  products
• ? ? in ESSENTIALS soda ash caustic soda
• Further growth in Specialty Polymers

16
2001 PROSPECTS
The second half 2001 should be higher than the
second half of 2000. Still, the full year 2001
could be below the levels reached in 2000
17
Financial review  R. Degrève, CFO of Solvay
18
STRONG FINANCIAL MANAGEMENT (1)to support
ambitious expansion program 2001 RD, CAPEX
acquisitions budget of EUR 1.6 Bn

• EUR 450 M non cash capex budget for BPs High
  Performance Polymers
• about 30 in the Pharmaceuticals sector(on total
  budget excluding non cash)

• Moderate NET DEBT/EQUITY ratio thanks to several
  flexible alternative financings
• 29 in 2000
• Very good ratings to support EMTN emission aimed
  at improving financing costs
• long term A (Standard and Poors) / A2 (Moodys)
• short term A1 (Standard and Poors) / P1
  (Moodys)

19
STRONG FINANCIAL MANAGEMENT (2)

• Tax optimization
• Important decrease of the Groups average TAX
  RATE
• 21 in 2000 (vs 35 in 1996),
• 26-27 expected on average
• Change in amortization depreciation to prepare
  for IAS
• Harmonization of useful lives for the various
  categories of fixed assets extension to 14
  years in the Chemicals and Plastics sectors
• About EUR 35 M decrease of 2001 depreciation
• IAS and quarterly reporting soon but not before
  2003

20
 Strategic turning pointin the Plastics
sector  H. Lefebvre, General Managerfor the
Plastics sector
21
MAJOR CHANGES IN PLASTICS PORTFOLIO
Target boost growth and reduce cyclicality
1. Size of Plastics SPECIALTIES has increased by
50 (100 owned) with the acquisition of high
performance engineering polymers (from BP,
) ? 45 of Plastics EBIT on average 2. The
Plastics Essentials are in Joint
ventures/alliances with first-class partners to
optimize competitiveness ? in European PVC
with BASF, TotalFinaElf ? in HDPE with
BP 3. Withdrawal from non-competitive PP business
22
TRANSACTION WITH BP compelling strategic
rationale

• Contribution of this transaction
• Double digit projected sales growth for high
  performance Polymers
• Expansion in high added value Specialty Polymers
• Divestiture of cyclical PP activities
• Strengthening of the security of ethylene supply
• Specialty Polymers is a global leader in selected
  niches
• One of the world leaders in HDPE
• Sale of PP where Solvay was not among the global
  leaders ( 12)

• Solvays Key Strategic Objectives
• Enhance future growth prospects and innovation
• Improve profitability and reduce earnings
  cyclicality
• increase Specialty focus
• secure raw material supply
• Develop global leadership positions

23
PLASTICS SPECIALTIES ? 45 of Plastics EBIT on
average
Specialty polymers and performance
compounds (after the BP transaction)

• Leading global position in niche
  markets(electronics, telecommunications,
  automotive, )
• Sales of approximately EUR 900 M
• 13 manufacturing sites and 2 RD centers(USA
  Europe)
• Double-digit projected sales growth over the next
  5 years for high performance polymers
• Strong global marketing presenceNorth America
  (46 of sales), Europe (41), AsiaROW (13)

24
SOLEF Polyvinylidene fluoride(Solvay product)

• Market ELECTRICAL ELECTRONICS
• Product Anode and cathode binders used by Sony
  Corporation in its lithium ion batteries.
• Suitable for films via solvent casting film or by
  melt extrusion (to considerably lower the cost of
  lithium ion batteries)
• Considerable expertise in assisting customers to
  make component films using SOLEF PVDF binders,
  especially in the area of making pastes, drying
  films and maintaining good adhesion.

25
IXEF Polyarylamide(Solvay product)

• Market TELECOMMUNICATIONS
• Product Shieldbox of Ericsson A2618s
• (internal part)
• Ixef is ideal for complex thin walled parts,
  where rigidity, strength and dimensional
  stability are vital.
• With a superb surface finish and a metallised
  coating for EMI Shielding (Electro Magnetic
  Interference), Ixef can be used for both
  internal and external parts.
• Quick, in depth and reliable support, through all
  stages of development are essential.

26
Radel R Polyphenylsulfone and Amodel
Polyphtalamide(from BP)

• Market FIBER OPTICS INDUSTRY
• Product Components used in fibre optic
  transmission systems. Specifically a popular
  connector design and housing for a
  transmitter/receiver.
• Radel R offers latch performance as exhibited by
  its superior ductility and toughness as well
  chemical resistance.
• Amodel is being used for the VCSEL (Vertical
  Cavity Surface Emitting Laser) housing because
• most cost/effective solution for meeting the
  stringent dimensional tolerances needed for fibre
  optic systems
• compatible with soldering techniques used to
  obtain the high density circuitry needed
• It can be electroplated for EMI/RFI shielding to
  eliminate interference of the fibre optic signal
  by other radio frequencies.

27
Amodel Polyphtalamide (from BP)

• Market AUTOMOTIVE
• Product ABS (anti- lock brake system)
  components
• a widely known and demanded feature by consumers
  on their cars is to have ABS (anti- lock brake
  system) to improve the safe operation and help
  keep control of their car during difficult
  driving conditions of snow, rain, ice, etc...
• Amodel resins are used in these applications by
  the leading producers of these systems to many of
  the major car makers around the world.

28
Radel R Polyphenylsulfone (from BP)

• Market AIRCRAFT
• Product Commercial Aircraft Interior Panels
  like passenger service units (PSUs)
• used in the industry by major manufacturers of
  commercial aircraft to produce interior panels in
  the passenger cabin such as the passenger service
  unit above the passengers seat that houses the
  lights, air conditioning controls, and vents and
  flight attendant call button.
• meet the low flammability, low toxicity and low
  smoke generation standards mandated by the FAA as
  well as the stringent regulations applied by the
  plane maker.

29
NEW PLASTICS PORTFOLIO
(proforma 2000 sales)
Before
After
37 Group Sales ()
32 Group Sales ()
() with PP sales included and 100 consolidation
of Solvay Indupa () with 51 consolidation of
Solvay Indupa () including performance
compounds
30
FINANCIAL IMPACT OF BP TRANSACTION ON SOLVAY
(1) Solvay increases high rated EBITDA and exits
low rated EBITDA markets
Pro Forma
NetChange
85 acquisition of BP specialty
polymers 15Divestment of PP -34impact of the
creation of the 2 HDPE joint ventures
2000 NEW
2000 OLD
M EUR
Sales
9,366
8,766
(600)
EBITDA
1,232
1,298
66
5
Margin
13
15
including PP business with sales of EUR 503 M
and EBITDA of EUR 15 M
31
FINANCIAL IMPACT ON SOLVAY (2)

• as from October 2001
• Solvay stake in HDPE JV will be consolidated
  proportionnally
• EUROPE 50
• USA 51
• Specialty polymers from BP will be fully
  consolidated

32
FINANCIAL IMPACT ON SOLVAY (3)

• IN CASH
• Cash payment from BP of EUR 80 M
• Sale of forex exchange position (EUR 22 M)
• EXTRAORDINARY ITEMS
• Gain on sale of HDPE to BP offsets by
• goodwill on the acquisition of 50 of BP HDPE
  business
• capital losses on the sale of PP
• PP operational losses
• charges for restructurings in the Group
• goodwill on acquired specialty polymers charged
  to Groups equity (subject to Boards
  approval)
• no material impact on 2001 extraordinary items

33
CLEAR CONTRIBUTION TO SOLVAY STRATEGY
1. Reduction of SOLVAY exposure to cyclical
markets

• about - 1 Billion sales - 10 of Group
  sales

2. Growth in high-margin Specialties

• 300 Million sales 3 of Group
  sales (double digit growth and margins)

• Proforma EBITDA MARGIN INCREASE of 5

34
VALUE CREATING IN PHARMACEUTICALS
35
SOLVAY PHARMACEUTICALSOUR VISION
Our aim is to find, produce and deliver
pharmaceutical products to help physicians to
treat diseases in our 4 therapeutic areas and
improve the quality of life for patients
36
SOLVAY PHARMACEUTICALSmidsize company thrives by
focusing on specialty areas
The giants disdain for small drugs could work
to the advantage of midsize pharmaceutical
companies
McKinsey, 2001
37
PHARMACEUTICALS SECTORTargets by 2005

• Sales gt EUR 2.5 Bn from 2005 onward
• EBIT/sales margin gt 15
• ROI gt 20
• North American sales at 50 of total sales

38
PHARMACEUTICALS SECTORTargets by 2005
10/y required to achieve EUR 2.5 Bn
World
15/y (23 in US)
39
PHARMACEUTICALS FINANCIAL OBJECTIVE by 2005 ?
sales of EUR 2.5 Bn ? EBIT/sales margin of 15

• Growth of existing drugs
• Recent launch of new drugs
• Contribution of molecules under development

• Strengthened by alliances and partnerships

40
 Expansion of global commercial platform J.
Wessolowski, Head of Pharmaceuticals Marketing
Operations
41
PHARMACEUTICALS WORLDWIDE PRESENCE
Total 2000 sales EUR 1,548 M
42
STRONG WORLDWIDE MARKET POSITION
Europe US World Solvay (11) Worldwide
Market Share Digestives/Enzymes
1 2 1 33 Laxatives 1 - 3 6 Irritable Bowel
Syndrome 1 - 1 28 Hormone Replacement Therapy
female 5 2 2 9 male () - 1 1 22 Antidepressan
ts OCD 13 8 9 2 Vertigo (Ménières
disease) 1 - 1 39
only sold in the US IMS data
43
STRONG GROWTH IN 4 THERAPEUTIC AREAS
Therapeutic fields/ Sales in 2000 2000/1999 Produ
cts (M EUR) ()

• HRT PRODUCTS 470 21
• Estratest 145 17
• Duphaston 56 7
• Prometrium 49 93
• AndroGel () 29 n.a.
• Femoston 19 60
• GASTROENTEROLOGY 473 11
• Creon 119 6
• Duphalac 81 0
• Duspatal 59 2
• Pantoloc 54 101
• Rowasa 47 8
• Dicetel 34 9
• PSYCHIATRY 419 13
• Luvox 271 19
• Serc 72 2
• CARDIOLOGY 106 6
• Physiotens 39 26
• Teveten 16 20

() Hormone Replacement Therapy () marketed
since June 2000
44
19 SALES in H1/01 (34 in the US)
Success of recently launched drugs
H1/01 M EUR vs H1/00

• Estratest 89 62
• AndroGel 51 n.s.
• Prometrium 31 45
• (Cenestin (Duramed) 15 112)

H1/01 vs H1/00
M EUR
HRT 267 46 GASTRO 247 12 CARDIO 73
47 PSY 181 - 10

• Creon 65 10
• Pantoloc 37 65
• Rowasa 27 29
• Dicetel 20 21

• Physiotens 23 20
• Teveten 17 157
• Aceon 9 ()

• Luvox (world) 86 - 28? US
  down? Japan up
• Marinol 24 178

() Aceon sales were negligible in H1/00
45
MAJOR RECENT PRODUCT LAUNCHES (1)
Launch of Femoston (conti.) in Germany, further
launches to follow
Line extension First launch of Femoston (conti.)
in UK and Switzerland
Femoston Physiotens Teveten Luvox
Lithuania, Croatia, Czech Rep., Slovak Rep.,
Malta, Bulgaria
Lebanon, Jordan, Saudi Arabia, Kuwait, U.A.E.,
Romania, Ukraine
Poland, South Africa, Norway, Hungary, Sweden,
Belgium, Russian Fed.
First launch of Teveten (in Germany and US
followed by further launches through the world
Fin, Gr, Canada, Sweden, Denmark, Norway, Spain,
Belgium
The Netherlands, Austria, UK, Ire, Switzerland,
Australia, Poland, Italy, France, Russian Fed.
First SSRI launched in Ja-pan marketed by
Fujisawa and Meiji Seika for depression and OCD
1999 2000 2001
46
MAJOR RECENT PRODUCT LAUNCHES (2)
USA
Aceon
Launch of Teveten
Cenestin (with Duramed Inc.)
Androgel (marketing agreement with TAPsince
June 2001)
Marinol (100 Solvay)
2000 2001
47
FUTURE PRODUCT LAUNCHES
Influvac-Intranasal
Teveten HCT, Europe and U.S.
Moxonidine HCT (Europe)
Presomen Conti, (Germany only)
Combigel E P-gel
Creon (Japan)
Tedisamil PO
cilansetron, Europe and U.S.
SLV 306
Luvox CR
DU 127090
Tedisamil IV
Estrogel US
2001 2003 2004 2005
2006
48
GEOGRAPHICAL EXPANSION
target 50/50 balance between NAFTA / Rest of
the world
In of total pharma sales
ROW NAFTA
ROW NAFTA
ROW NAFTA
2005
2000
1996
ROW Rest of the World
49
GEOGRAPHIC GROWTH OBJECTIVES

• To increase global market share up to 0.8 - 1
  of the world market (Market share currently
  0.5)
• To get 1 in countries where Solvay has a presence

50
THE WORLDWIDE MARKET
Solvay market share
of worldwide market
Countries
in Billion USD
Rank
lt1
1
USA
149.8
41.3
lt1
2
Japan
57.8
15.9
gt1
3
Germany
17.3
4.8
gt1
4
France
16.8
4.6
5
UK
11.1
3.0
lt1
6
Italy
11.0
3.0
lt1
lt1
7
China
6.8
1.9
lt1
8
Brazil
6.7
1.8
lt1
9
Canada
6.3
1.7
gt1
10
Spain
6.2
1.7
not present
11
Mexico
6.0
1.7
not present
12
Argentina
3.7
1.0
not present
13
South Korea
3.7
1.0
lt1
14
India
3.6
1.0
lt1
15
Australia
3.1
0.9
16
Turkey
3.1
0.9
not present
17
Netherlands
2.6
0.7
lt1
lt1
18
Poland
2.5
0.7
gt1
19
Belgium
2.5
0.7
20
Taiwan
2.5
0.7
not present
USA Market Estimates include audited US Mail
Order data, data for the Netherlands is based
on estimated sales only (IMS data)
51
ACQUISITIONS NEW PRODUCTS/NEW COMPANIES

• Recent/Short term Medium term Long term
• 0 - 2 years gt 2 - lt 5 years gt 5 - years

USA Unimed X X EUROPE Italy X UK X Poland
(X) Continuous growth Central/Eastern Europe,
especially Russia geographical expansion in
Turkey AMERICAS Brazil Sintofarma Argentina
X Mexico X Canada X ASIA Japan X
geographical expansion in India
52
ALLIANCES WITH SOUND PARTNERSIN
CO-PROMOTION/LICENSES

• USA
• Androgel with TAP Phamaceutical Co
• Cenestin with Duramed
• Remeron sol-tab with Organon
• CANADA
• Pantoloc with Byk-Gulden
• Teveten with Fournier
• SOUTH AMERICA
• Mexico with Byk Gulden
• Argentina with Byk Gulden
• EUROPE
• Germany with Aventis for Teveten
• Spain with Roche for Cilazapril
• Italy with Upjohn for Frontal
• with Almirall/Prodesfarma for Dumirox
  /Almotrex
• ASIA
• Japan with Meiji and Fujisawa for Luvox
• Japan with Amano and with Meiji for Creon
  (under negotiation)
• China with Hexal (hostpartnership)

53
EXPANSION OF COMMERCIAL SALES FORCE
About 5,300 sales representatives worldwide
(versus 2,900 in 1998) including sales force
partners or third parties

• SOLVAY SALES FORCE 3,800
• United States 1,000 ? twofold increase between 98
  and 2000
• ? establishment of a primary care network
• ? acquisition of Unimed Pharmaceuticals Inc
• ? alliance with Duramed (female HRT) and
  TAP (male HRT, Androgel))
• Brazil 180 ? Acquisition of Sintofarma in Brazil
• Canada 64
• Western Europe 1,355
• Central/Eastern Europe 300
• Asia/Middle East 907
• THIRD PARTIES
• Japan 1,500 ? distribution agreement with
  Fujisawa/Meiji Seika

54
DOUBLE DIGIT GROWTH
over the last 5 years

• 96 97 98 99 00 H1/01

Sales 922 1,049 1,167 1,349 1,548 830 Sales
Growth (yoy) 15 14 11 16 15 19 EBIT
97 118 135 157 134 59 EBIT growth
(yoy) 38 22 14 16 -15 157 EBIT/SALES
10 11 12 12 9 7
due to voluntary marketing investments for the
launch of 5 new drugs with H1 lower than H2
due to seasonal effect
55
 Pharmaceuticals RDfor tomorrow s success
W. Cautreels, Worldwide Head ofRD
Pharmaceuticals
56
CONTENT OF PRESENTATION

• Promising Development Projects
• an update by therapeutic area
• But First An Update on Actions Announced Earlier
• towards optimal decision making, output and
  effectiveness in RD
• strategic partnerships for biotech, special
  skills and value optimization

57
RD EFFECTIVENESS IMPROVEMENTS
Weesp (Nl), Hannover (D), Marietta and Chicago
(US), Tokyo (J)

• handle the improved output from biotechnology
  based discovery programsmore compounds in
  development ? New biotech platform implemented
• accelerate the development process by working
  more effectively with expert Clinical Research
  Organisations as partnersreduce  time to
  market  ? Quintiles agreement implemented
• concentrate one function on one site
• improve efficiency by avoiding duplications ?
  Implementation started
• shift internal RD costs to external costs
  towards 50/50
• increased portfolio development spending ?
  Implementation started (e.g. cilansetron)

RD EFFORTS BETTER FOCUSED (not reduced)
58
Strategic Partnering makes us stronger! some
examples
Programs
Projects
Products
D
Proof ofPrinciple
L

• Development
• in psychosis Lundbeck
• in HRT several projects, E/P gel with Antares
• Lipase with Meristem
• Intranasal influenza vaccine with West

• Discovery and Biotech
• for Compounds (Arqule Evotec Syncom)
• for Screening Technologies (Euroscreen Cerep)
• for Targets (Innogenetics Euroscreen)

• Business
• Fujisawa/Meiji Seika (Jp)for LUVOX? DEPROMEL?
• Byk-Gulden (D) PANTOLOC? in Canada
• Several companies for TEVETEN? co-marketing
• ANDROGEL? co-marketing with TAP in the US

• In preparation preferred partner
• for execution of clinical trials
• with established quality global network
• and state-of-the-art IT systems ? QUINTILES

59
AREAS OF RD FOCUS
Hormone Replacements
Cardiology
Gastroenterology
Psychiatry
Anxiety Depression Psychosis Parkinsons
Arrhythmia Congestive Heart Failure Hypertension
Obesity
Motility Disorders Irritable Bowel
Syndrome Pancreatic Enzymes
Women HRT Endometriosis Men HRT
External collaborations
60
GROWTH THROUGH A SPECIALIZED RD PROGRAM
Hormone replacement therapies 17
Gastroenterology 27
Psychiatry 34
Cardiology 22
- in of 2000 pharma RD expenses EUR 248
M(16 of pharma sales)
61
R D SUMMARY - NUMBER OF PROJECTS
Gastro-
CNS
HRT
Cardiology
Enterology
3(IBS (2), Enzyme Insufficiency)
2 (Parkinsons, Psychosis)
Pre-Clinical
2 (Hypertension/CHF)
7
Phase I
3 (Psychosis)
3
Phase II
4 (Parkinsons, Psychosis, Pain/ Spasticity,
Depression)
2(Motility Disorders, enzyme insufficiency)
2 (arrhythmia, Hypertension/CHF)
8
1(OCD/Social anxiety disorders)
2 (IBS, Enzyme Insufficiency)
3 (female HRT, male HRT)
Phase III
2 (Hypertension)
8
Total26 7 10 3 6
62
PSYCHIATRYportfolio
Proof of principle
Registration
Research
DEPRESSION EU/JPNOCD
US/EU/JPNOCD/Social Anxiety Disorders
LUVOX
fluvoxamine CR
DU127090
SCHIZOPHRENIA/PSYCHOSIS Multiple Sclerosis
Pain/Spasticity PARKINSONS SCHIZOPHRENIA
PSYCHOSIS
THC (MARINOL)
SLV308
SLV310
SLV313
SLV314
DEPRESSION
DU125530
preclinical SLV318, SLV319
63
PSYCHIATRY
Proof of principle
Registration
Research
DEPRESSION EU/JPNOCD
US/EU/JPNOCD/Social Anxiety Disorders
LUVOX
fluvoxamine CR

• ELAN manufacture
• SOLVAY trademark (to be decided)
• positive pivotal studies in both OCD Social
  Anxiety Disorders
• submission 2002 US, 12 months delay after
  validation of manufacturing

• launch date 2003 onwards
• peak sales potential under 100 MEUR

64
PSYCHIATRY
Proof of principle
Registration
Research
Multiple Sclerosis pain/Spasticity
THC (MARINOL)

• cannabinoid receptor agonist, tetrahydrocannabinol
  (THC)
• launched in US for appetite stimulation in
  HIV/AIDS and nausea/vomiting caused by cancer
  chemotherapy
• clinical studies ongoing in relief of pain and
  spasticity in multiple sclerosis sufferers

65
PSYCHIATRY
Proof of principle
Registration
Research
SCHIZOPHRENIA/ PSYCHOSIS
DU127090
SLV310
SLV313
SLV314

• DU127090
• Solvay Pharmaceuticals partnership with Lundbeck
  for joint developments and marketing
• Partial D2 antagonist with additional 5HT1A
  agonism
• Proof of principle as antipsychotic is completed
• SLV310/313/314
• different mechanism mixes D2, 5HT1A, SSRI
• SLV319 a preclinical potential candidate

• Launch date 2006
• Peak sales potential above 250 MEUR

66
The Lundbeck Example of partnership

• We created DU 127090 and described its
  anti-psychotic potential by animal work and phase
  I clinical studies, phase II is ongoing
• DU127090 shows promising anti-psychotic activity
• Lundbeck has very relevant skills with CNS
  project and product experience
• Solvay and Lundbeck share costs, programs
  marketing (Solvay USother countries, Lundbeck
  Europe)

67
PSYCHIATRY
Proof of principle
Registration
Research
SLV308
PARKINSONS

• SLV308
• Partial D2 agonist plus 5HT1A agonism plus
  alpha-1 / alpha-2 agonism
• Parkinsons first target co-morbid depression
• Proof of principle studies on motor and mood
  disorders ongoing
• Backup SLV318 a preclinical potential candidate

68
PSYCHIATRY
Proof of principle
Registration
Research
DEPRESSION
DU125530

• Is a potent, full 5HT1A antagonist
• Atypical potential antidepressant
• Early clinical findings confirm antagonism in man
  with opposite effects to buspirone, an agonist,
  on night time temperature and sleep

69
CARDIOLOGYportfolio
Proof of principle
Registration
Research
PHYSIOTENS EU
TEVETEN EU / US
HYPERTENSION
ACEON US
TEVETENHCT
moxonidine HCT
CHF/ HYPERTENSION
SLV306
ARRHYTHMIAS
tedisamil IV-PO
preclinical SLV316, SLV320
70
CARDIOLOGY
Proof of principle
Registration
Research
HYPERTENSION

• Launch date 2001-2002
• Peak sales potential under 100 MEUR

• eprosartan plus hydrochlorotiazide (HCT) diuretic
  combinations
• angiotensin II receptor antagonist
• to be marketed everywhere when registrations and
  price agreementsachieved
• approvable letter received from FDA

71
EFFICACY OF EPROSARTAN AND COMBINATIONS

• eprosartan monotherapy works well for many
  hypertensive patients
• eprosartan HCT works well for some who need
  more than eprosartan alone
• better response rate with eprosartan HCT than
  with enalapril HCT

72
CARDIOLOGY
Proof of principle
Registration
Research
moxonidine HCT
HYPERTENSION

• moxonidine plus HCT diuretic combination
• to be marketed in EU when registrations and price
  agreements achieved

• Launch date 2003
• Peak sales potential under 100 MEUR

73
CARDIOLOGY
Proof of principle
Registration
Research
CHF/ HYPERTENSION
SLV306

• Dual endopeptidase inhibitor NEP(1) and ECE(1)
• hSEP is a novel ECE target (patent filed)
• selectively inhibited by SLV306
• concept proven in both animals and man
• clinical proof of principle achieved for both
  uses
• SLV306 is the front runner of this class
• development and marketing partnerships under
  consideration
• (1) neutral endopeptidase (NEP) endothelin
  converting enzyme (ECE)

• Launch date 2006
• Peak sales potential above 250 MEUR

74
CARDIOLOGY
Proof of principle
Registration
Research
ARRHYTHMIAS
tedisamil IV-PO

• potassium channel blocker
• intravenous use to convert atrial fibrillation to
  sinus rhythm followed by oral use to maintain it
• proof of principle achieved
• earliest launch 2004 intravenous and 2006 oral

• Launch date 2004-2006
• Peak sales (IVPO) potential 100-250 MEUR

75
GASTROENTEROLOGY portfolio
Proof of principle
Registration
Research
IRRITABLE BOWELSYNDROME
COLOFAC EU
DICITEL EU
cilansetron US/EU
PANCREATICENZYMES
CREON EU/US
CREON JPN
gastric lipase
MOTILITYDISORDERS
KC11458
preclinical SLV317, SLV321, enzymes
76
GASTROENTEROLOGY
Proof of principle
Registration
Research
IRRITABLE BOWELSYNDROME
COLOFAC EU
DICITEL EU
cilansetron US/EU

• Cilansetron
• 5HT3 antagonist
• diarrhea-predominant IBS in men and women
• July 2001 decision to complete the phase III
  program
• Quintiles contract signed for clinical trials
• development and marketing commercial partnerships
  now open for discussion

• Launch date 2004
• Peak sales potential above 250 MEUR

77
PROMISING and HIGH-POTENTIAL RD
PROJECTCILANSETRON FOR IBS IN PHASE III

• Start of the phase III program after constructive
  discussions with the US FDA
• Agreement signed with QUINTILES TRANSNATIONAL
• access to state-of-the-art clinical trial
  execution with certain priority claim on
  QUINTILES resources
• ongoing talks with potential allianceand
  marketing partners

78
KEY DATA FROM CILANSETRON IBS STUDIES

• 2 large studies with similar results, 471 and 435
  patients
• cilansetron phase II pivotal studies show clear
  separation from placebo both in men and women,
  fall 2000

79
GASTROENTEROLOGY
Proof of principle
Registration
Research
PANCREATICENZYMES
CREON EU/US
CREON JPN
gastric lipase

• CREON JPN
• Launch date 2003
• Peak sales potential under 100 MEUR
• gastric lipase
• non-animal-sourced range of enzymes sought
• Molecular Pharming technology expresses
  mammalian gastric-lipase in corn (MERISTEM)
• in-licensed for development, phase II ongoing
• other non-animal-sourced enzyme products
  preclinical

80
GASTROENTEROLOGY
Proof of principle
Registration
Research
MOTILITYDISORDERS
KC11458

• motilin agonist
• KC11458 is a non-peptide macrolide
• intended to be of use in the delayed gastric
  emptying found in some diabetic gastroparesis
  patients and functional dyspepsias
• clinical studies show dose dependent effects in
  man confirming faster gastric emptying
• phase II ongoing

81
HORMONE REPLACEMENTS portfolio
Proof of principle
Registration
Research
ESTRATEST US
FEMOSTON EU
WOMENS HRT
PRESOMEN EU
ESTROGEL US
EP GEL US/EU
MENS HRT
ANDROGEL US
Evaluation testosterone for female use

82
HORMONE REPLACEMENTS
Proof of principle
Registration
Research
WOMENS HRT
ESTROGEL US

• New Drug Application submitted to FDA 1999

• Launch date 2003
• Peak sales potential under 100 MEUR

83
HORMONE REPLACEMENTS
Proof of principle
Registration
Research
WOMENS HRT
EP GEL US/EU

• Estradiol NETA (progestogen) gel
• Solvay has obtained licenses for US/Canada and
  Europe
• Clinical studies necessary to start
  full-development have been completed
• Phase III program to be started in Q1 2002

• Launch date 2005
• Peak sales potential under 100 MEUR

84
INFLUENZA VACCINES

• INFLUVAC our current product was manufactured
  by Fort Dodge/AHP. We bought the factory mid
  2001 in order to secure and expand manufacturing
• WEST PHARMACEUTICALS intranasal formulation
  technology license obtained mid 2001 for use with
  our INFLUVAC launch expected 2005
• MDCK process approved by Dutch authorities mid
  2001, launch dates depend on future partnerships

85
VALUATION OF R D PORTFOLIO
Peak sales POTENTIAL (3 years or more after
launch)
Teveten HCT, Europe and U.S. lt 100 MEUR
Influvac-Intranasal lt100MEUR
Moxonidine HCT (Europe) lt100 MEUR
Combigel E P-gel lt100MEUR
Tedisamil PO 100-250MEUR
Creon (Japan) lt100MEUR
Cilansetron, Europe and U.S. gt 250MEUR
SLV 306 gt250MEUR
Luvox CR lt100MEUR
DU 127090 gt250MEUR
Estrogel US lt100MEUR
Tedisamil IV
LAUNCHDATES
2001 2003 2004 2005
2006
This represents an all-success scenario,
individual projects are subject to industry
standard probabilities of success for their
respective stage of development
86
PHARMACEUTICALS RD

• A Discovery with Proven Output Ability
• and a continuing search for external technologies
  and alliances
• A Development with Proven Abilities to Proof Of
  Principle
• recent examples being cilansetron and SLV306
• An Ability to Complete Full Developments
• recent examples being ESTROGEL and fluvoxamine
  CR
• And A Willingness to Work with Skilled Partners
• Lundbeck on DU127090 and
• Discussion ongoing for cilansetron, SLV306 and
  others

87
 Innovation through New Business Development
(NBD) A. Michielsen, CEO of Solvay
88
NEW BUSINESS DEVELOPMENT (NBD)
Product Technology
Entirely new to Solvay
Relatively new to Solvay
NBD Business
Familiar to Solvay
Business
Market
Entirely new to Solvay
Familiar to Solvay
Relatively new to Solvay
89
New Business Development programs

• EXPLORATORY PROGRAMS ? INNOVATIVE PROGRAMS
  ? NEW BUSINESS DEVELOPMENT (NBD)
• ? generate new business opportunities,
  essentially outside or at the interface of
  existing business lines
• ? for the initial phase of new industrial
  activities and to stimulate potential synergy
  between Business lines
• ? for the enrichment of technical scientific
  competencies
• contributes to medium or long term growth of the
  Group

90
NBD From ideas to development
IDEAS
RISK / PROBABILITY
EXPLORATORY PROGRAMS - KNOWLEDGE DEVELOPMENT
INNOVATIVE PROJECTS
NBD PROJECTS
COMMERCIAL PLANTS
CUMULATED INVESTMENTS
91
A competitive, reliable supplier of large
quantities of GMP - quality peptides to the
pharmaceutical industry worldwide

• PEPTIDES main regulators of bodily functions
• Sales 1998 EUR 6 M 2000 EUR 30 M
• Two facilities
• Peptisyntha S.A. (Belgium)production of about
  100 kg/y to be doubled before the end of 2001
• Peptisyntha, Inc. (California, USA) - operational
  in 2002with RD and manufacturing capabilities
  (a few kg)
• Main customer COR Therapeutics (cardiology)
  Numerous projects with Pharmaceutical companies
  in various therapeutic applications (cancer,
  infertility, cardiology, depression, )

92
A process to regenerate PVC compounds from
composite residues

• Key-dates
• Nov. 97 research start-up
• Mar. 98 1st patent
• Dec. 98 Technological pilot plant (Brussels -
  Reactor of 250 l)
• Jul. 00 1st industrial unit in Ferrara ?
  start-up expected on December 1, 2001 ? 10,000
  tons/y of residues (8,500 tons of regenerated PVC
  compounds)
• FUTURE DEVELOPMENTS
• in Japan feasibility study with Kobe Steel
• other projects in Europe and in NAFTA are being
  studied

93
A FUNDAMENTAL STRATEGIC CHANGE FOR SOLVAY
CLEAR COMMITMENT TO DELIVER PHARMACEUTICALS VALUE
TO SHAREHOLDERS and SIGNIFICANT POTENTIAL
SHAREHOLDER VALUE INCREASE FROM THE CURRENT
MARKET CAPITALISATION
94
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