Business Services Industry
Annual Results: 2005 Confirms Rhodia's Recovery Momentum
Business Wire, March 1, 2006
A. CONSOLIDATED INCOME STATEMENTS
For the year ended
December 31,
-------------------------------------------- -------------------------
(in millions of euros) 2005 2004
-------------------------------------------- ------------ ------------
Net sales 5,085 4,693
-------------------------------------------- ------------ ------------
Other revenue 460 453
-------------------------------------------- ------------ ------------
Cost of sales (4,620) (4,408)
Administrative and selling expenses (574) (513)
Research and development expenses (124) (138)
Restructuring costs (87) (169)
Goodwill impairment - (60)
Other operating income/(expenses) (43) (46)
-------------------------------------------- ------------ ------------
Operating profit/(loss) 97 (188)
Financial income 127 121
Finance costs (496) (455)
Foreign exchange gains/(losses) (67) 67
Share of profit/(losses) of associates - 3
-------------------------------------------- ------------ ------------
Loss before income tax (339) (452)
Income tax expense (49) (102)
-------------------------------------------- ------------ ------------
Loss from continuing operations (388) (554)
Loss from discontinued operations (227) (78)
-------------------------------------------- ------------ ------------
Net loss (615) (632)
-------------------------------------------- ------------ ------------
Attributable to:
Equity holders of Rhodia SA (616) (641)
Minority interests 1 9
-------------------------------------------- ------------ ------------
Loss per share from continuing operations
(in euro) - basic and diluted (0.60) (1.19)
Weighted average number of shares before
and after dilution 645,635,891 471,607,727
-------------------------------------------- ------------ ------------
Loss per share from discontinued operations
(in euro) - basic and diluted (0.95) (1.36)
Weighted average number of shares before
and after dilution 645,635,891 471,607,727
-------------------------------------------- ------------ ------------
B. CONSOLIDATED BALANCE SHEETS
Assets At December 31,
-------------------------------------------- -------------------------
(in millions of euros) 2005 2004
-------------------------------------------- --------------- ---------
Property, plant & equipment 2,135 2,245
Goodwill 244 226
Other intangible assets 154 139
Investments in associates 4 3
Other non-current financial assets 164 226
Deferred tax assets 83 99
-------------------------------------------- --------------- ---------
Non-current assets 2,784 2,938
-------------------------------------------- --------------- ---------
Inventories 630 701
Income tax receivable 20 14
Trade and other receivables 1,188 1,260
Derivative financial instruments 42 36
Other current financial assets 5 5
Cash and cash equivalents 920 612
Assets classified as held for sale 57 -
-------------------------------------------- --------------- ---------
Current assets 2,862 2,628
-------------------------------------------- --------------- ---------
TOTAL ASSETS 5,646 5,566
-------------------------------------------- --------------- ---------
Liabilities and shareholders' equity At December 31,
-------------------------------------------- -------------------------
(in millions of euros) 2005 2004
-------------------------------------------- ---------------- --------
Share capital 1,177 628
Additional paid-in capital 570 807
Other reserves 141 12
Deficit (2,580) (1,993)
-------------------------------------------- ---------------- --------
Equity attributable to equity holders of
Rhodia SA (692) (546)
Minority interests 26 25
-------------------------------------------- ---------------- --------
Total equity (666) (521)
-------------------------------------------- ---------------- --------
Borrowings 1,975 2,250
Retirement benefits and similar obligations 1,269 1,038
Provisions 297 216
Deferred tax liabilities 34 55
Other non-current liabilities 46 51
-------------------------------------------- ---------------- --------
Non-current liabilities 3,621 3,610
-------------------------------------------- ---------------- --------
Borrowings 1,039 721
Derivative financial instruments 14 49
Retirement benefits and similar obligations 81 74
Provisions 204 237
Income tax payable 31 38
Trade and other payables 1,271 1,358
Liabilities associated with assets
classified as held for sale 51 -
-------------------------------------------- ---------------- --------
Current liabilities 2,691 2,477
-------------------------------------------- ---------------- --------
TOTAL EQUITY AND LIABILITIES 5,646 5,566
-------------------------------------------- ---------------- --------
C. CONSOLIDATED STATEMENT OF RECOGNIZED INCOME AND EXPENSE
For the year ended
December 31,
-------------------------------------------------- -------------------
(in millions of euros) 2005 2004
-------------------------------------------------- ---------- --------
Currency translation differences and other
movements 125 (9)
Gains / (losses) on cash flow hedges 4 (2)
Actuarial gains/(losses) on retirement benefits (248) (1)
Tax impact of items taken to equity 13 -
-------------------------------------------------- ---------- --------
Net expense directly recognized in equity (106) (12)
-------------------------------------------------- ---------- --------
Net loss (615) (632)
-------------------------------------------------- ---------- --------
Total recognized income and expense (721) (644)
-------------------------------------------------- ---------- --------
Attributable to:
Equity holders of Rhodia SA (722) (652)
Minority interests 1 8
-------------------------------------------------- ---------- --------
D. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Other reserves
-------------------------------- ----------------------------- -------
Cash
Additional flow
(in millions Share paid-in hedge Translation Legal
of euros) capital capital reserve reserve reserve Deficit
------------- ------- ---------- -------- ----------- -------- -------
At January 1,
2004 179 2,513 (7) 0 32 (3,058)
------------- ------- ---------- -------- ----------- -------- -------
Appropriation
of earnings (1,706) 1,706
Share capital
increase 449 (2)
Net loss (641)
Income and
expense
directly
recognized
in equity (2) (11) 2
Acquisition
of minority
interests
------------- ------- ---------- -------- ----------- -------- -------
At December
31, 2004 628 807 (9) (11) 32 (1,993)
------------- ------- ---------- -------- ----------- -------- -------
Appropriation
of earnings (264) 264
Share capital
increase 549 27
Net loss (616)
Income and
expense
directly
recognized
in equity 4 125 (235)
------------- ------- ---------- -------- ----------- -------- -------
At December
31, 2005 1,177 570 (5) 114 32 (2,580)
------------- ------- ---------- -------- ----------- -------- -------
(in millions Minority
of euros) Total interests Total
------------- ------- ---------- --------
At January 1,
2004 (341) 27 (314)
------------- ------- ---------- --------
Appropriation
of earnings 0 0
Share capital
increase 447 447
Net loss (641) 9 (632)
Income and
expense
directly
recognized
in equity (11) (1) (12)
Acquisition
of minority
interests (10) (10)
------------- ------- ---------- --------
At December
31, 2004 (546) 25 (521)
------------- ------- ---------- --------
Appropriation
of earnings 0 0
Share capital
increase 576 576
Net loss (616) 1 (615)
Income and
expense
directly
recognized
in equity (106) (106)
------------- ------- ---------- --------
At December
31, 2005 (692) 26 (666)
------------- ------- ---------- --------
E. CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended
December 31,
--------------------------------------------------- ------------------
(in millions of euros) 2005 2004
--------------------------------------------------- --------- --------
Net loss (616) (641)
Adjustments for :
Depreciation, amortization and impairment of long-
term assets 518 750
Net increase/(decrease) in provisions and employee
benefits 25 110
Net increase/(decrease) in financial provisions 133 103
Share of profit/(loss) of associates - 65
Dividends received from associates - -
Other income and expense (2) 7
Gain/(loss) on disposal of non-current assets 22 (258)
Income tax expense/(income) 20 60
Foreign exchange losses/(gains) 110 (91)
--------------------------------------------------- --------- --------
Cash flow from operating activities before changes
in working capital 210 105
--------------------------------------------------- --------- --------
Changes in working capital
- (Increase)/decrease in inventories and work in
progress 91 (52)
- (Increase)/decrease in trade and other
receivables 62 74
- Increase/(decrease) in trade and other payables (26) (22)
- Increase/(decrease) in other current assets and
liabilities (199) (98)
--------------------------------------------------- --------- --------
Net cash from operating activities 138 7
--------------------------------------------------- --------- --------
Purchases of property, plant and equipment (254) (221)
Purchases of other non-current assets (32) (27)
Proceeds on disposal of non-current assets 51 652
(Purchases of)/repayments of loans and financial
investments 24 (107)
--------------------------------------------------- --------- --------
Net cash (used by) / from investing activities (211) 297
--------------------------------------------------- --------- --------
Proceeds from issue of shares, net of costs 576 447
Dividends paid - -
New long-term borrowings, net of costs 1,228 980
Repayments of non-current borrowings, net of costs (1,285) (987)
Net increase/(decrease) in current borrowings (176) (926)
--------------------------------------------------- --------- --------
Net cash (used by) / from financing activities 343 (486)
--------------------------------------------------- --------- --------
Effect of foreign exchange rate changes 38 (4)
--------------------------------------------------- --------- --------
Net increase/(decrease) in cash and cash
equivalents 308 (186)
--------------------------------------------------- --------- --------
Cash and cash equivalents at the beginning of the
year 612 798
--------------------------------------------------- --------- --------
Cash and cash equivalents at the end of the year 920 612
--------------------------------------------------- --------- --------
COPYRIGHT 2006 Business Wire
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