Form 20-F 2005

The actual rate of return on plan assets amounted to €105 million and €141 million for 2004 and 2005, respectively.
The expected rate of return was €90 million for 2004 and €91 million for 2005. Actuarial gains have been recognized to account for
the difference between these two amounts, i.e. €15 million for 2004 and €50 million for 2005.
The amount disbursed by the Group with respect to defined benefit plans corresponds to benefits paid to employees
(€166 million in 2005), to Rhodia’s contributions to funds (€34 million in 2005), less the benefits paid directly by these funds
(€114 million in 2005). This amount totaled €86 million in 2005 and €70 million in 2004 and is estimated at €96 million with
respect to 2006.
Expense for the year
The expense relating to retirement benefit obligations breaks down as follows:
(in millions of euros) 2005 2004
Cost of services rendered 32 32
Interest cost 119 121
Expected return on plan assets (91) (90)
Past service cost - -
Curtailments and settlements 8 (24)
Total expense recognized
in profit or loss 68 39
The cost of services rendered is recognized in operating profit or loss by destination. The interest cost and the expected return
on plan assets have been recognized in finance costs and finance income, respectively.
The actuarial gains and losses relating to retirement benefit obligations recognized in the statement of recognized
income and expense:
(in million of euros) 2005 2004
Actuarial gains and losses recognized in
the statement of recognized income and
expense 247 1
Cumulative actuarial gains and losses
recognized in the statement of recognized
income and expense 248 1
Experience adjustments on measurement
of obligations–loss/(gain) 39 (48)
Experience adjustments on measurement
of plan assets–loss/(gain) (50) (15)
Movement in the net obligation recognized under liabilities in the balance sheet
(in millions of euros) 2005 2004
Obligation at January 1 998 1,029
Expense relating to obligations recognized
under liabilities in the balance sheet 56 39
Benefits paid (69) (70)
Actuarial gains and losses recognized
in the statement of income and expense 247 1
Currency translation differences 10 (4)
Effect of business combinations (1) 3
Obligation at December 31 1,241 998
F-58 Form 20 - F 2005 - Rhodia