Sales (+16%) and operating profits (+33%) up strongly in the 1 st half of 2005
Group net profit (EUR 509 million) more than doubled in the 1 st half
Š Sales (EUR 4,039 million), operating profits (REBIT 1 of EUR 428 million) and operating margin (11%) up
strongly thanks to Chemicals and Plastics activities. The Pharmaceuticals sector recorded sales up 13%
(+24% in the 2 nd quarter) and continues its strategic development with the major acquisition of Fournier
Pharma.
Š
Significant non-operating items :
o net capital gain on the sale of the interest in the polyethylene activities to BP (EUR 443 million);
o negative non-recurring items of EUR 281 million.

Sales for the 1st half of 2005 reached EUR 4,039 million, up 16% compared to the 1st half of 2004 (+17% in the 2nd
quarter). Sales of all three sectors improved: Plastics (+18%), Chemicals (+16%) and Pharmaceuticals (+13%).
REBIT (EUR 428 million) increased 33% in the 1st half of 2005 compared to the 1st half of 2004 (+43% in the 2nd quarter), with an operating margin (REBIT divided by sales) reaching nearly 11%.
Group net profit reached EUR 509 million in the 1st half of 2005, close to the full year 2004 record level (EUR 541 million). For the 2nd quarter of 2005, it amounted to EUR 184 million, up 57% from the 2nd quarter of 2004.
Beyond the improvement in operating profits (REBIT, +33% for the 1st half of 2005), the Group’s net profits for 2005 included a net capital gain from the sale of our interest in the high density polyethylene activities to BP (EUR 443
million) and negative non-recurring items of EUR 281 million, resulting mainly from a profit on the sale of buildings (EUR 125 million, including EUR 92 million in the 2nd quarter) and provisions of EUR 382 million in the 1st half of 2005, including EUR 32 million in the 2nd quarter.
Cash flow2 for the 1st half of 2005 reached EUR 728 million and the net debt to equity ratio was 20% at the end of the 1st half of 2005. Also, available cash at the end of June 2005 (EUR 1.6 billion) will allow the Group readily to
finance the acquisition of Fournier Pharma for a base price of EUR 1.2 million; while, the Group’s ratings were recently confirmed by Moody’s and S&P.
Chemical sector profits (REBIT of EUR 163 million) for the 1st half of 2005 doubled from the 1st half of 2004 and were up 82% in the 2nd quarter. Firming of markets that continued in the 2nd quarter of 2005, together with the confirmation of price increases and strict cost controls, led to the restoration of operating margins, in a context of very high energy
costs.
Plastics sector profits (REBIT of EUR 218 million) were up 39% from the 1st half of 2004 (+18% for the 2nd quarter), in a context of high raw material and utilities costs. Specialty polymers, major contributors to Group
results, stood up well to the weakening of demand in certain segments and recorded good earnings. Vinyls improved but, primarily in Europe in the 2nd quarter, suffered erosion of demand, primarily from inventory drawdowns
by customers, which accelerated price decreases. In Mercosur and Asia, sales were sustained. The divestiture of Industrial Films3 is confirmed with the signature of the final agreement with Renolit.
Pharmaceuticals sector sales were up 13% from the 1st half of 2004 (+24% in the 2nd quarter). Sales increased in all therapeutic areas and grew well in NAFTA as well as in emerging countries.

Profits for the 1st half of 2005 were EUR 76 million, including payment of the arbitration award from Barr (EUR 15 million) and gains on the divestiture of minor products (EUR 12 million). It should be noted that the profits for the
1st half of 2004 included a series of positive one off items, and in particular the amount of EUR 88 million linked to the partnering agreements with Wyeth and Bristol Myers Squibb and the first compensation payment from Barr (EUR 15 million). Operating profits (REBIT) for the 2nd quarter reached EUR 34 million, double those of the 2nd quarter of 2004, the latter having been affected by renegotiations with American distributors.
The Pharmaceuticals Sector also completed an important step in the acceleration of its strategic development with the acquisition of Fournier Pharma, and proceeded with restructuring to improve its efficiency.