Form 20-F 2005

An immediate 1% increase (100 basis points) on interest rates on December 31, 2005, based on net constant financial debt, would
have increase the cost of annual indebtedness by €6 million (excluding not due accrued interest), and simultaneously would increase
cash-based financial instruments and equivalents to €8 million. The particularly high level of cash and cash equivalents placed at
variable rates would result in heightened capital within the framework of a capital increase.
Financial instruments held by us that are sensitive to fluctuations in exchange rates include forward exchange contracts, options,
and payables and receivables in foreign currency. The analysis of the sensitivity is based on an instantaneous 10% variation in
the value of the euro with respect to these currencies in relation to year-end exchange rates, and all other things being equal.
On December 31, 2005, a 10% variation in exchange rates as regards the reporting currency of our Group’s subsidiaries would
have generated a loss on exchange of €107 million. On the other hand, a 10% appreciation of the U.S. dollar against the euro on
December 31, 2005 would have resulted in a gain of €32 million through the options that we hold.
Item 12. Description of Securities Other than Equity Securities
Not applicable.
Form 20 - F 2005 - Rhodia
119