Form 20-F 2005

- We calculate the impact of “changes in exchange rates” by adjusting the prior period’s results for the impact of the
change in exchange rates on the translation into euro of items of our income statement denominated in currencies other
than the euro at average exchange rates during the subsequent period.
- We estimate the impact of changes in average selling prices by comparing the current weighted average net unit selling
prices for each product in the subsequent period (for example, the euro cost per ton) against the weighted average net
unit selling prices in the prior period, multiplied in both cases by volumes sold during the subsequent period.
- We estimate the impact of changes in volumes by comparing quantities shipped in the subsequent period against
quantities shipped in the prior period, multiplied in both cases by the weighted average net unit selling prices of the
prior period.
We believe that these measures are useful tools for analyzing and explaining changes and trends in our historical results of operations.
However, these measures are not measurements of performance under IFRS or U.S. GAAP. They should not be considered as an
alternative to any measures of performance under IFRS or U.S. GAAP. Our method of calculating this information may differ from
methods used by other companies.
For your convenience, this Annual Report contains translations of certain euro amounts into U.S. dollars at specified rates. These
translations should not be construed as representations that the converted amounts actually represent such U.S. dollar amounts
or could be converted into U.S. dollars at the rates indicated or at any other rate.
Unless the context requires otherwise, the terms “Rhodia”, the “Company”, the “Group”, “we”, “our” or “us” refer to Rhodia and
our consolidated subsidiaries. See “Item 4. Information about Rhodia—Corporate History—Formation of Rhodia”.
All references herein to “United States” or “U.S.” are to the United States of America, references to “dollars” or “$” are to the currency
of the United States, references to “France” are to the French Republic, and references to “euro” and “€” are to the currency of the
European Union member states (including France) participating in the European Monetary Union.
The brand names (indicated in capital letters) mentioned in this Annual Report are trademarks of Rhodia, its affiliates and/or
associated companies or are used with permission under license agreements.
This Annual Report contains information about our markets and our competitive position therein, including market sizes and market
share information. We are not aware of any exhaustive industry or market reports that cover or address all of our markets. Therefore,
we assemble information on our markets through our enterprises, which in turn compile information on our local markets annually.
They derive that information from formal and informal contacts with industry professionals (such as professional associations),
published data (such as gross domestic product or client industry publications), Annual Reports of our competitors and market
research by independent consultants. We estimate our position in our markets based on the market data referred to above.
We believe that the market share information contained in this Annual Report provides fair and adequate estimates of the size of our
markets and fairly reflects our competitive position within these markets. However, our internal Company surveys and management
estimates have not been verified by an independent expert, and we cannot guarantee that a third party using different methods
to assemble, analyze or compute market data would obtain or generate the same results. In addition, our competitors may define
their markets differently than we do.
4 Form 20 - F 2005 - Rhodia