Printable PDF - Tessenderlo Group

A N N U A L
R E P O R T 2 0 0 3
T e s s e n d e r l o
G r o u p
FINANCIAL CALENDAR
Tessenderlo Group publishes quarterly releases of its consolidated results through the
press. The dates of future releases will be the following:
• results on 31 December 2003 March 11th, 2004
• results 1st quarter 2004 April 29th, 2004
• results of the first half-year 2004 September 9th, 2004
• results 3rd quarter 2004 November 9th, 2004
General Meeting
approving the financial statements 2003 June 1st, 2004
General Meeting
approving the financial statements 2004 June 7th, 2005
Payment dividend 2003 June 4th, 2004
Press releases: see our website www.tessenderlogroup.com under Corporate – ‘News’
and ‘Investor Relations’.
Contacts:
Shareholders’ service
Jos CNOPS
Tel.: +32 2 639 18 71
e-mail: jos.cnops@tessenderlo.com
Financial Director
Christian VREBOSCH
Tel.: +32 2 639 18 87
e-mail: christian.vrebosch@tessenderlo.com
Press relations
Geert DUSAR
Tel: +32 2 639 17 75
e-mail: geert.dusar@tessenderlo.com

SYNTHETIC
CONSOLIDATED
BALANCE SHEET
(thousands EUR) 2003 % 2002 %
Intangible assets
Consolidation
73 225 82 318
difference 45 011 21 542
Tangible assets 647 903 635 737
Financial assets 19 259 20 422
Fixed assets 785 398 49 760 019 47
Inventories 297 939 306 061
Receivables
Treasury investments
457 453 487 968
and cash 47 902 48 225
Current assets 803 294 51 842 254 53
Assets 1 588 692 100 1 602 273 100
Paid-in capital 165 602 162 753
Revenu reserves 601 124 588 134
Translation difference -10 384 7 053
Minority interests 402 14 326
Equity
Provisions and
756 744 48 772 266 48
deferred taxes
Financial liabilities
114 779 120 595
– Long term 116 196 163 252
– Short-term
Accounts payable &
271 010 188 251
liabilities 329 963 357 909
Liabilities 831 948 52 830 007 52
Equity and Liabilities 1 588 692 100 1 602 273 100
SYNTHETIC
CONSOLIDATED
P&L ACCOUNT
(thousands EUR) 2003 2002
Operating income
Raw materials,
consumable &
1 985 382 1 961 518
goods for resale 928 503 861 685
Services and other goods
Remuneration's, social
443 078 452 889
security costs and pensions 369 961 363 279
Depreciation 134 628 135 973
Other operating charges 27 028 32 821
Operating charges 1 903 198 1 846 647
Operating profit
Financial charges
82 184 114 871
and income
Share in earnings of
companies valued
according to equity
-14 220 -15 860
method
Consolidated profit
on ordinary activities
4 975 5 396
before income taxes 72 939 104 407
Extraordinary result
Profit before income
8 703 -1 365
taxes 81 642 103 042
Income taxes
Consolidated net
-38 200 -27 874
profit 43 442 75 168
Minority interests - 16 4 530
Consolidated net
profit of the group 43 458 70 638
TESSENDERLO GROUP IN A FEW FIGURES
OVER 10 YEARS
millions EUR 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
Turnover 1 972 1 934 1 890 1 818 1 571 1 563 1 525 1 274 1 185 1 067
Operating profit 82 115 109 135 102 125 125 97 109 91
Net profit 43 71 65 90 70 82 81 64 77 49
Net cash flow 162 207 168 211 180 187 190 149 178 153
Operating cash flow (Ebitda) 204 259 230 251 213 233 233 183 206 177
Ebitda/Turnover (%) 10.3 13.4 12.2 13.8 13.6 14.9 15.3 14.3 17.4 16.5
Cash flow/Turnover (%) 8.20 10.69 8.89 11.60 11.45 11.96 12.46 11.70 15.03 14.37
Net profit/ Turnover 2.20 3.65 3.44 4.97 4.43 5.22 5.37 4.99 6.49 4.55
Return on equity (%) (1) 5.74 9.50 9.16 13.26 10.50 12.86 13.92 12.12 16.30 11.60
Roce (operating profit/EV) (%) 9.4 12.5 12.0 15.6 12.6 16.9 18.4 16.8 20.6 18.0
Enterprise Value (EV) (2) 1 095 1 061 1 177 1 038 938 796 676 600 542 490
Working capital 166 263 254 274 255 235 261 182 205 198
Capital expenditure (tangible) 119 110 133 137 133 147 152 119 80 46
Dividend paid 30.7 30.6 30.5 30.3 26.8 26.6 25.8 23.8 20.8 18.8
Net financial debt
Net financial debt/
339 303 341 242 209 123 57 49 37 50
Equity ratio (Gearing) (%) 44.84 39.27 41.00 30.00 28.00 18.00 9.00 9.00 7.00 11.00
Net financial debt/EV 30.96 28.20 28.68 23.11 22.12 15.32 8.36 8.17 6.83 10.20
Interest coverage (3) 5 8 5 7 9 11 11 10 10 9
Pay out ratio (%) 71 43 47 34 38 32 32 37 27 38
Non-current assets 785 760 773 703 664 615 545 489 422 375
Current assets 803 842 942 829 727 599 636 560 488 418
Shareholders' equity 756 (4) 758 836 796 729 673 619 551 505 440
Minority interest 0 14 12 8 7 5 2 1 0 0
Provisions 115 121 106 109 109 108 126 92 98 70
Net financial debt LT 116 163 76 68 78 67 61 28 26 64
Net financial debt ST 271 188 316 212 166 92 84 92 67 25
Non financial debts 330 358 369 339 302 270 289 284 215 194
Total balance sheet 1 589 1 602 1 715 1 532 1 391 1 215 1 181 1 049 910 793
Headcount 8 223 7 934 7 849 7 087 6 847 6 667 6 055 5 309 4 981 4 930
1. ROE = Net profit/ Average shareholders' equity
2. Enterprise value (EV) = Net financial debt + Equity
3. Net income+Income taxes+Interest charges/Interest charges
4. Cancellation of capital reserve for own shares: 106,4 in 2002

Per activity sector
27% ■ Inorganic Chemicals
27% ■ Plastics Converting
17% ■ PVC & Compounds
16% ■ Natural Organic
Products
13% ■ Fine Chemicals
(% – millions EUR)
■ Fine Chemicals
■ Natural Organic Products
■ PVC & Compounds
■ Plastics Converting
■ Inorganic Chemicals
DISTRIBUTION OF THE CONSOLIDATED
SALES 2003
Per country of production
37% ■ Belgium
25% ■ France
14% ■ Great Britain
9% ■ USA
6% ■ The Netherlands
5% ■ Italy
4% ■ Other
Distribution of the consolidated sales 2003
2000
1800
1600
1400
1200
1000
800
600
400
200
Per consumption market
34% ■ Building industry & Public
works
31% ■ Fertilisers & Animal
Nutrition
14% ■ Health & Hygiene
13% ■ Industry
8% ■ Household
Per destination
26% ■ France
15% ■ Great Britain
8% ■ Germany
8% ■ The Netherlands
7% ■ Belgium
4% ■ Italy
7% ■ Other EU
5% ■ Other European countries
10% ■ USA
10% ■ Other
13%
16%
17%
27%
27%
0
94 95 96 97 98 99 00 01 02 03
KEY FIGURES PER SHARE
2003 2002 2001
(in units) EUR EUR EUR
Net profit per share (EPS) 1.60 2.62 2.41
Net cash flow per share 5.96 7.66 6.25
Shareholders' equity per share 27.93 27.57 26.39
Net dividend per normal share 0.85 0.85 0.85
Number of shares 27,113,352 26,975,013 29,347,124
Inorganic Chemicals
(millions EUR) 2003 2002
Turnover 534 611
Ebitda 39 71
Tangible investments 18 20
Headcount 1,816 2,005
PVC & Compounds
(millions EUR) 2003 2002
Turnover 341 298
Ebitda -2 15
Tangible investments 19 15
Headcount 796 748
KEY FIGURES PER DIVISION
Fine Chemicals
(millions EUR) 2003 2002
Turnover 261 264
Ebitda 22 34
Tangible investments 21 14
Headcount 997 1,067
Plastics Converting
(millions EUR) 2003 2002
Turnover 523 500
Ebitda 88 86
Tangible investments 36 29
Headcount 2,761 2,567
Natural Organic Products
(millions EUR) 2003 2002
Turnover 313 261
Ebitda 57 53
Tangible investments 25 32
Headcount 1,853 1,547
Tessenderlo Group is a diversified Belgian group internationally active in several
branches of the chemical industry and plastics conversion. Its activities are based
on a know-how established in the production and valorisation of hydrochloric
acid and chlorine. At the beginning of 2004 the group had around 8,300
employees, distributed over 115 establishments in 22 countries.
In 2003, the group achieved a consolidated turnover of 1,972 million EUR. The
net profit amounted to 43.5 million EUR, the net profit per share 1.60 EUR.
As in 2000, 2001 and 2002, the net dividend per share was set at 0.85 EUR.
Leadership
In a number of markets Tessenderlo Group occupies a leading position. Thus, at
the world level the group is:
– the largest producer of hydrochloric acid, liquid sulphur-containing fertilisers,
sodium hydrosulphide and of benzyl alcohol, benzyl acetate, benzyl chloride,
phenylacetic acid and its salts;
– the second largest supplier of phosphates for animal feed and of potassium
sulphate for specialised fertilisers;
– the third largest manufacturer of high-quality gelatins.
At the European level, Tessenderlo Group is:
– the largest producer of glycine;
– the number two for caustic potash;
– the fifth largest manufacturer of compounds;
– the sixth largest supplier of PVC.
Recent acquisitions
TESSENDERLO GROUP AT A GLANCE
2001
• acquisition of Acordis Fine Chemicals in Leek (UK) and Atofina’s chlorotoluenes
business in Widnes (UK).
• acquistion of John Davidson Pipes, a major distributor of plastic pipes and
fittings in Great Britain.
2002
• acquisition of the French compounder Saplast.
2003
• Tessenderlo Group takes over a gelatin production plant in the USA (Davenport)
and in Argentina (Santa Fe) (April 2003);
• the group acquires the remaining shares in its Chinese manufacturing unit Taile
(July 2003) and in Fairbrook plc. (UK) (April 2003) and becomes their sole
shareholder.

2000
1500
1000
500
0
100
80
60
40
20
0
250
200
150
100
50
0
Turnover
(millions EUR)
Net consolidated earnings
(millions EUR)
Consolidated cash flow
(millions EUR)
1972
94 95 96 97 98 99 00 01 02 03
43
94 95 96 97 98 99 00 01 02 03
162
94 95 96 97 98 99 00 01 02 03
300
250
200
150
100
50
0
8
6
4
Ebitda
(millions EUR)
Earnings/turnover
(%)
2
0
0
204
94 95 96 97 98 99 00 01 02 03
94 95 96 97 98 99 00 01 02 03
Net financial debt/
cash flow
3
2
1
2.2
2.13
94 95 96 97 98 99 00 01 02 03
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
30
24
18
12
6
0
6
4
2
0
Enterprise
Value/turnover
94 95 96 97 98 99 00 01 02 03
Enterprise Value/
net profit
Enterprise Value/ebitda
0.56
25.02
94 95 96 97 98 99 00 01 02 03
5.4
94 95 96 97 98 99 00 01 02 03
1000
800
600
400
200
0
28
21
14
7
0
756
94 95 96 97 98 99 00 01 02 03
Net financial debt/
Enterprise Value
(%)
35
40
30
20
10
0
TESSENDERLO GROUP IN A FEW CHARTS
Group shareholders' equity
(millions EUR)
31
94 95 96 97 98 99 00 01 02 03
Net financial debt/
equity ratio
(%)
50
44.84
94 95 96 97 98 99 00 01 02 03
20
16
12
8
4
0
12
9
6
3
0
0.8
0.6
0.4
0.2
0.0
Return on equity
(%)
5.7
94 95 96 97 98 99 00 01 02 03
Interest coverage
5.7
94 95 96 97 98 99 00 01 02 03
Evolution of the net
dividend per share
(EUR)
1.0
0.85
94 95 96 97 98 99 00 01 02 03
THE GROUPS’ STRATEGY AND ASSETS
For years Tessenderlo Group has been pursuing a logical strategy
that can be summarised as folllows:
– striving throughout the world for a leading position in niche markets;
– implementing acquisitions with a high added value, more specially within
the Fine Chemicals and Plastics Converting divisions;
– pursuing a policy with minimal risk;
– generating an optimal yield with the resources furnished by the
shareholders;
– devoting constant attention to cost savings;
– seeking a high return on the share capital.
On the basis of this strategy, Tessenderlo Group wants to achieve the
following objectives:
– devoting maximum attention to the environment and the safety and health
of each individual – both inside and outside the company;
– offering customers quality products and outstanding service;
– creating a working environment in which teamwork plays a central role,
and which stimulates the personal development of the employees;
– achieving steady profit growth in order to further strengthen the confidence
of the shareholders.
In recent years, this strategy has born fruit, in part thanks to a
number of advantages Tessenderlo Group possesses:
– the world leadership – and at least the European leadership – for the vast
majority of its diversified product range, primarily in niche markets;
– the industrial integration of the various production processes. Focus on
valorisation of by-products. This generates considerable cost savings;
– the emphasis that is placed on specialities (60% of turnover), where the
market is less cyclical;
– the orientation towards products with a high added value;
– the importance of exports. +90% of the group’s production is consumed
outside Belgium;
– the sound financial situation;
– annual investments of 130 million EUR on average;
– the dedication of experienced and highly qualified employees.

Financial calendar cover
Tessenderlo Group at a glance leaflet
Key figures leaflet
Strategy and assets leaflet
Recent acquisitions leaflet
Message from the chairman page 4
Management, control and leadership page 7
International presence page 8
Tessenderlo Chemie share and Investor Relations page 12
Markets and Applications page 20
Activity report per division
• Inorganic Chemicals page 22
• Fine Chemicals page 30
• PVC & Compounds page 34
• Plastics Converting page 40
• Natural Organic Products page 46
Human Resources page 54
Environment and Safety page 56
Research and Development page 66
Corporate Governance page 72
Chart of the group page 78
Annual accounts 2003
– consolidated page 82
– NV page 110
General information
– addresses page 118
– index page 126
SUMMARY
1

Dyka Polska
Jelcz-Laskowice
POLAND
The Plastics Converting division primarily
produces PVC window profiles and plastic pipes
systems. Besides consolidating its existing
positions, the division also wishes to boost its
presence in emerging markets, primarily in
Eastern Europe.
1

4
Dear Madam, dear Sir,
MESSAGE FROM THE CHAIRMAN
2003 was without doubt our group’s worst year for a long time. In addition to a particularly
difficult environment for chemicals in general, some of our major products
were also faced with specific problems.
The group’s turnover totalled 1,972 million EUR, up 2% on the previous year. Lower
prices in the Inorganic Chemicals and the PVC divisions, on top of a weak dollar had a
negative impact on turnover. This was offset by the incorporation of the acquisitions
of the two new gelatin units.
Net profit decreased by 38.5%, largely due to the decline in animal feed phosphates
prices and a further deterioration in PVC margins.
The markets in which the Inorganic Chemicals division is involved were fairly gloomy
in 2003. The increased supply of animal feed phosphates, together with a tail-off in
demand in Europe, resulted in prices plummeting. This had a significant negative
impact on the results.
Caustic soda prices in Europe remained lower than global prices, despite balanced
supply and demand. This continued to weigh on results in the electrolysis business
unit.
The market in sulphates for fertilisers remained stable, so partially offsetting the negative
effect of the fall in the dollar and high freight levels.
The only positive trend was that for ferric chloride in Europe and liquid sulphur-containing
fertilisers in the US.
PVC and VCM prices fluctuated considerably in 2003. Although prices returned to
reasonable levels in the early part of the year, they fell back sharply in the second
quarter. The summer saw sound volumes as a result of companies involved in converting
replenishing stocks, and prices gradually improved in the fourth quarter. Since raw
material prices remained high throughout the year, margins fell significantly compared
to the previous year. As a result, 2003 was the third disappointing year in a row for
PVC.
In Fine Chemicals, toluene derivatives suffered as a result of competition from Asia,
exacerbated by the weak dollar. In a rather subdued market, this competitive pressure
meant it was not possible to pass on persisting high raw material prices. This division
also had a role to play in the deterioration in results, but to a lesser extent than the
other divisions already referred to.
Gérard Marchand
Chairman

‘Despite a difficult year, some important decisions for the group’s future
development have been taken in 2003.’
Gelatin business improved markedly, due to the sound performance by our European units and the very positive
contribution from the two American production units in their very first year in the group. This offset a decline
in the by-products of animal origin business, which was hampered by the introduction of new regulations.
The Plastics Converting division continued to perform well, so making the most positive contribution to the
group’s results.
Pipe systems business expanded through the distribution network in Great Britain, and in Poland. Most of the
expansion in profiles occurred in Great Britain. We are continuing our efforts to boost profitability at our US
production unit.
We significantly enhanced our position on the gelatin market in 2003, with the acquisition of two new
plants, one in the US and the other in Argentina. We are the world’s third largest gelatin manufacturer, and
now have a diversified geographic presence. We also acquired the minority interests in our two subsidiaries,
Fairbrook (Plastics Converting) in Great Britain and Taile (Fine Chemicals) in China, bringing our stake to
100%.
Considering these sizeable investments, the group’s debt only increased moderately. This confirmed its capacity
to generate cash flows, after deduction of recurrent investments, even in a very difficult year.
In the latter part of the year, we obtained the environmental permit for the new electrolysis unit at
Tessenderlo, which will enable us to begin this very significant investment.
In accordance with its dividend policy, and in spite of the decline in profit, the Board of Directors will submit a
proposal to the Annual General Meeting to keep the net dividend at 0.85 EUR per ordinary share.
The Board would like to thank the 8,244 staff at all levels for their efforts on the group’s behalf.
5

6
Matteusz Dubinski
Christian Vrebosch
Philippe Pôlet
Adrien Carton de Wiart Eddy Vandenbriele
Jozef Housen Gérard Marchand David Poynton

1. Board of Directors
MANAGEMENT, CONTROL AND LEADERSHIP
Chairman Gérard Marchand
Directors Pierre-Louis Boutonnat
Pierre-François Couture
Claude Niedergang
Valère Croes
Paul de Meester
Bernard Pache
Thierry Piessevaux
Karel Pinxten
Marc Lambrechts († August 2003)
Statutory Auditor
KPMG Klynveld Peat Marwick Goerdeler
Reviseurs d'Entreprises/
Bedrijfsrevisoren
Permanent representative L. Ruysen
2. General management of Tessenderlo Group
(on 31 December 2003)
Chairman of the Management Committee: Gérard Marchand
Member of the Management Committee: Matteusz Dubinski
Inorganic Chemicals division
Member of the Management Committee: Jozef Housen
Natural Organic Products division
Member of the Management Committee: Philippe Pôlet
PVC and Plastics Converting divisions
Member of the Management Committee: David Poynton*
Fine Chemicals division
Secretary General: Adrien Carton de Wiart
Director IT, Organisation Development
and Human Resources: Eddy Vandenbriele
Financial Director: Christian Vrebosch
* Pierre Ducuroir till 31.3.2003
7

8
CANADA 2
UNITED STATES 16
Production units: 69
Sales offices in:
Argentina
Belgium
Chile
Czech Republic
Denmark
France
Germany
Great Britain
Hungary
Italy
Lebanon
Mexico
Netherlands
Peru
Poland
Spain
Switzerland
Turkey
USA
INTERNATIONAL PRESENCE
ARGENTINA 1
BRAZIL 2

GREAT BRITAIN 7
BELGIUM 7
FRANCE 23
NETHERLANDS 4
GERMANY 1
POLAND 2
ITALY 3
CHINA 1
9

Thermoplastiques
Cousin-Tessier
Tiffauges
FRANCE
The French plant Cousin-Tessier produces thermoplastic
elastomers and PVC compounds for cables,
shoe soles and the automotive industry.
Tessenderlo Group is the fifth largest producer of
PVC compounds in Europe.
2

12
Tessenderlo Chemie shares
TESSENDERLO CHEMIE SHARE AND
INVESTOR RELATIONS
Tessenderlo Chemie shares have been listed on the Brussels Stock Exchange since
17 August 1937. They are traded on the continuous market and are part of the
‘Next 150’ and ‘NextPrime’ indices.
On 31 December 2003, Tessenderlo Chemie NV’s capital was represented by
27,113,352 shares without indication of nominal value (5,226,551 of which with
VVPR strips). Bearer shares are issued in denominations of 1, 10, 50 and 100. At the
end of 2003, 12,360,012 registered shares, including shares held by staff, were
entered in the share register.
Tessenderlo Chemie’s market capitalisation had increased to EUR 757,818,188 at the
end of December 2003. The ‘velocity’ (the number of shares traded over twelve
months compared with the total number of shares) within the Next 150 segment was
23.07%, and the adjusted velocity within the BEL20 index was 43.17%.
The liquidity contract that guarantees support for trading in the shares and their
negotiability is in its third year.
Tessenderlo Chemie shares are also represented on the American market, in the form
of American Depository Receipts (ADR). Five ADR’s are equivalent to one Tessenderlo
Chemie share.
In the past year, the ordinary share price fluctuated between 24.13 EUR and
29.50 EUR. The closing price on 31 December 2003 was 27.95 EUR.
Beginning of 2004 Tessenderlo Chemie NV has been selected for inclusion in the
Kempen SNS Smaller European SRI Index. Membership is available to those companies
that demonstrate defined standards and practise in the three areas of business ethics,
human resources and the environment.

Stock market capitalisation
(millions EUR)
2000
1500
1000
500
0
94 95 96 97 98 99 00 01 02 03
Turnover
Stock market capitalisation
Shareholders' equity
Stock exchange data (consolidated accounts) on December 31
1999 2000 2001 2002 2003
Capital (millions EUR) 128.90 130.14 131 132 133
Number of shares 29,137,316 29,232,548 29,347,124 26,975,013 27,113,352
Own shares 1,178,454 2,473,639 2,473,639 0 0
Farthest prices
Fixed ordinary share 38.50 / 52.85 29.75 / 55.45 20.55 / 32.20 23.00 / 35.00 24.13 / 29.5
Closing price
Market continuous 51.50 31.65 26.60 28.6 27.95
Average daily volume 27,400 23,845 17,556 24,097 24,120
Data per share*
Value of shareholders' equity 23.68 25.49 26.39 27.57 27.93
Consolidated net profit 2.49 3.38 2.41 2.62 1.6
Net Cash flow 6.44 7.88 6.25 7.66 5.96
Net dividend per ordinary share 0.72 0.85 0.85 0.85 0.85
Capitalisation at the end of year 1,500.6 925.2 780.6 771.5 757.8
* Without taking into account the own shares at the 31st december
Net dividend per share
(EUR)
1.0
0.8
0.6
0.4
0.2
0.0
0.85
94 95 96 97 98 99 00 01 02 03
Gross dividend/net
consolidated earnings (%)
80
70
60
50
40
30
20
10
0
71
94 95 96 97 98 99 00 01 02 03
13

14
Capital structure
The company did not receive any statements involving acquisitions or transfers
exceeding the disclosure limit in the past financial year.
A capital increase reserved for staff has been made every year since 1985. 138,339
shares were subscribed in 2003. Taking account of the 414,312 registered shares
recorded in the register, staff now comprises 1.52% of the total shareholder base.
On 6 November 2003, the second block of a bond loan with warrants was issued
for the group’s senior executives. This loan has a term of seven years, and is represented
by 1,250 bonds of 25 EUR each, with 40 warrants attached. The interest rate
is 4% per annum. Each warrant entitles the holder to purchase one share at the exercise
price of 26.45 EUR.
The options issued in the form of a debenture loan, which can be taken up by the
group’s senior executives, currently represent less than 0.5% of the total shares in
issue.
Dividend
On 1 June 2004, the Annual General Meeting will be requested to approve a proposed
net dividend of 0.85 EUR. This corresponds to a gross dividend of 1.1333 EUR.
The net dividend for coupons with VVPR strips attached will be 0.9633 EUR.
The net dividend of EUR 0.85 means there is no change compared to the 2000, 2001
and 2002 financial years.

Financial information and investor relations
Providers of financial information publish information on Tessenderlo Group under the following codes:
– Bloomberg: TESB BB
– Reuters: TESBt.BR
– Datastream: B:TES
– TBM: 23IT081
– SEDOL: 4-884-006
– ALPHA: TES
Tessenderlo Group has been publishing quarterly financial results for the past ten years. The publication
dates for 2004 are given in the ‘Financial Calendar’ on the inside of the front cover. These details – along
with exhaustive information on the group – are also available on the website www.tessenderlogroup.com. In
addition the possibility is offered to subscribe to a mailing list to receive Tessenderlo Group press releases by
e-mail.
The half-yearly results are published in brochure form.
The Tessenderlo Chemie share price can be viewed on the group’s website at www.tessenderlogroup.com
(see Corporate – Investor Relations – Stock Information) and on the Euronext website at www.euronext.com.
Analysts at the following financial institutions (listed in alphabetical order) monitor Tessenderlo Group’s performance:
Bank Degroof, Bank de Maertelaere, Delta Lloyd Securities, Dexia Securities, Fortis Bank, HSBC
Dewaay Bank, ING Financial Markets, KBC Securities, Petercam, Puilaetco and Rabo Securities.
Every year, the financial managers – who are also responsible for investor relations – take part in a number of
events for institutional and individual investors in Belgium and abroad. They are supported by the Corporate
Communication department. Between the various ‘roadshows’ (in cities such as Amsterdam, Geneva,
London, Milan, Paris and Zurich), meetings with analysts and company visits for analysts and investors are
arranged. The purpose of all these initiatives is to boost investor awareness of the group.
15

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32
30
28
26
24
22
20
16
The provisional calendar for 2004 is as follows:
20 March 2004 Investor event – VFB – in Antwerp (B)
27 March 2004 Share day – Cash – in Brussels (B)
27 and 28 April 2004 Midcap Event in London
15 May 2004 Financial brunch – Investa – Euronext – in Liège/Luik (B)
8 and 9 July 2004 Europlace in Paris
22 and 23 September 2004 Midnext in Paris
19 and 20 November 2004 Actionaria in Paris
Financial services
Financial services in respect of Tessenderlo Chemie shares are provided by the
following financial institutions: Bank Degroof, Deutsche Bank, Dexia, Fortis Bank,
ING, KBC Bank and Petercam Beursvennootschap.
Tessenderlo Chemie vs. European peers (rebased)
31-12-2002
14-01-2003
28-01-2003
11-02-2003
25-02-2003
11-03-2003
25-03-2003
08-04-2003
22-04-2003
06-05-2003
20-05-2003
03-06-2003
17-06-2003
01-07-2003
15-07-2003
29-07-2003
12-08-2003
26-08-2003
09-09-2003
23-09-2003
07-10-2003
21-10-2003
04-11-2003
18-11-2003
02-12-2003
16-12-2003
30-12-2003
Tessenderlo FTSE Chemicals DJ STOXX Chemicals

34
32
30
28
26
24
22
20
420
340
260
180
100
20
Evolution of the Tessenderlo Chemie share price
31-12-2002
14-01-2003
28-01-2003
11-02-2003
25-02-2003
11-03-2003
25-03-2003
08-04-2003
22-04-2003
06-05-2003
20-05-2003
03-06-2003
17-06-2003
01-07-2003
15-07-2003
29-07-2003
12-08-2003
26-08-2003
09-09-2003
23-09-2003
07-10-2003
21-10-2003
04-11-2003
18-11-2003
02-12-2003
16-12-2003
30-12-2003
06-01-2004
Return with dividends reinvested (index = 100)
94 95 96 97 98 99 00 01 02 03
Source: Moneyline
17

Tessenderlo Kerley
Coffeyville plant
UNITED STATES OF AMERICA
Tessenderlo Group is, through its American subsidiary
Tessenderlo Kerley, the largest producer of
liquid sulphur-containing fertilisers worldwide.
The group holds 55 percent of the American
market for this type of high quality fertiliser.
3

20
Tessenderlo Group: Bringing Chemistry to Life
MARKETS AND APPLICATIONS
Tessenderlo Group manufactures a range of products, which form an integral part of
our everyday lives – even though many consumers may not realise it. After all, behind
the often complicated chemical names one finds substances which are used in countless
applications, from animal feeds to antibiotics to the dashboards of cars. A little bit
of Tessenderlo Group can also be found in chewing gum, perfumes, batteries, blood
bags, washing powders and window profiles – to mention just a few examples.
Below you will find an overview of the most important products and their applications.
The latter can be grouped into five markets:
Construction industry
PVC & Compounds: pipe systems, door and window profiles,
facade cladding, telecommunications, cable
insulation, floor covering, conservatories
Sodium sulphate and carbonate: glass
Zeolites: double-glazing
Agriculture
Ammonium and potassium
thiosulphate: liquid fertilisers for large-scale cultivation
Caustic potash: horticulture, fertilisers for irrigation systems
Di-calcium phosphate: animal feed
Glycine and derivatives: animal feed, agrochemicals
Potassium sulphate: specialised fertilisers, which are especially
suited for flower, tobacco and fruit growing
Sulphuric acid: fertilisers
Industry
Acetates: antifreeze products for e.g. runways
Caustic potash: batteries, textile treatment
Caustic soda: aluminium, rayon
Electrolysis products: photography, leather tanning and water
treatment

Ferric chloride: wastewater and potable water treatment
Gelatin: photography, wine production
Organic chlorine derivatives: paint, photography
Potassium bicarbonate: fire-extinguishing powder
Potassium carbonate: glass, TV and computer screens
Sodium hydrosulphide and
caustic soda: paper, pulp
PVC and PVC compounds: dashboards, furniture, shoe soles, tarpaulins, electronics, cables
Sulphuric acid: batteries, car windows, billiard balls
Health and hygiene
Chlorine: PVC, disinfectants, water treatment
Gelatin: capsules for e.g. drugs
Organic chlorine derivatives: antibiotics, various pharmaceutical products for people, plants and
animals, perfumes, cosmetics, shampoo, UV resistant sun lotions
Pharmaceutical intermediates: antibiotics, penicillin
Potassium carbonate: shampoos, soaps
PVC: blood bags, infusion bags and tubes, catheters, gloves, bottles for
shower and bath foam
Sodium hypochlorite: sanitizer, water treatment, bleaching
Sodium sulphate and caustic soda: detergents, soaps
Household
Animal fats: pet food
Electrolysis products: detergents
Gelatin: foodstuffs such as dairy and ´light´ products, confectionery,
energy bars and drinks
Glycine: foodstuffs, pet food
Potassium bicarbonate: baking powders
PVC: packaging films, tablecloths, shower curtains, garden furniture,
inflatable articles such as balls, swimming pools, boats and so on
Sodium hydrosulphide and
caustic soda: detergents
Zeolites: washing powders
21

22
Activities and products
Tessenderlo Group’s Inorganic Chemicals division embraces the production of inorganic
salts and alkaline bases obtained through electrolysis. It is characterised by an
integrated production process where the various end products and by-products are
utilised internally in order to create maximum added value. The two fundamental
activities of this process are the production of hydrochloric acid and chlorine.
Activities and products of the Inorganic Chemicals unit
INORGANIC CHEMICALS
The Inorganic Chemicals division plays a leading role in several markets worldwide.
For example, the group is the second largest world producer of potassium sulphate,
an especially well-suited fertiliser for use in dry areas, and for crops, flowers, tobacco,
fruit and vegetables, that are highly sensitive to fertiliser quality. The group also plays
a leading role in the market of sodium sulphate, found primarily in detergents.
A by-product of the production of sulphates is hydrochloric acid, of which the
Tessenderlo Group is the largest producer in the world.
The hydrochloric acid is marketed externally, but is also used internally in the production
of phosphates, which have various applications in the animal feed and fertiliser
industries. The group occupies second place in the world market of phosphates for
animal feed. The range of phosphate products is very extensive allowing the
Tessenderlo Group to meet the requirements of almost all feed applications.
In addition, Tessenderlo Group is the world’s largest producer of liquid sulphurcontaining
fertilisers (such as ammonium thiosulphate). These are applied mainly
in North America to supply needed sulphur to broad acre and speciality crops.
The other sulphur-containing derivatives: sodium sulphide, sodium hydrosulphide,
ammonium bisulphide, ammonium thiosulphate and ammonium sulphide are used in
various processes within mining, photography, paper and leather tanning industries.
Another important product is zeolites, which have increasingly substituted phosphates
in washing powders.
Matteusz Dubinski,
director of the Inorganic
Chemicals division

‘Improving productivity and cutting production costs are still the key factors for
success, especially against an international backdrop involving new, formidable
competitors, such as China. The division constantly focused on meeting this
challenge in the past year. If we continue our efforts, I firmly believe that
Tessenderlo Group will, in the long run, be able to further strengthen its
position.’
Inorganic Chemicals
2003 2002
Turnover 534 611
(millions EUR)
Ebitda 39 71
(millions EUR)
Tangible investments 18 20
(millions EUR)
Headcount 1,816 2,005
Activities and products of the electrolysis unit
Turnover
(millions EUR)
94 95 96 97 98 99 00 01 02 03
The Tessenderlo Group’s electrolysis units produce 300,000 tonnes of chlorine annually. Most of this is used
internally for the production of monovinyl chloride (VCM), which is the precursor of polyvinyl chloride (PVC),
and for the chlorination of toluene and benzene.
The chlorine production also generates around 100,000 tonnes of caustic potash and more than 235,000
tonnes of caustic soda annually. Caustic potash is mainly used in the production of potassium nitrate and
potassium phosphates, followed by applications for food and fertilisers, alkali batteries, de-icing products for
airport runways, detergents and the chemical industry.
Caustic soda is used in water purification and the manufacture of soap and detergents. It is also used in the
chemicals sector and in the aluminium and paper industries.
These basic products of the electrolysis units moreover have various derivatives with a wide range of applications,
from photography and the food sector to water treatment and ore extraction.
Alongside the classic electrolysis products, ferric chloride and aluminium chloride are also prepared on the
basis of chlorine, both indispensable in the rapidly expanding water treatment sector.
700
600
500
400
300
200
100
0
534
23

24
The most important production units (*)
Inorganic Chemicals
BELGIUM
The establishments of Tessenderlo Chemie in Ham and Tessenderlo annually process
two million tonnes of raw materials, including sulphur, raw phosphate, potassium
chloride and sodium chloride. Tessenderlo Chemie in Ham produces a substantial
share of the calcium phosphates used in the animal feed industry. The process in
which hydrochloric acid acts upon natural phosphate ores was developed by this
group. The line of phosphates for animal feed, which is produced in Belgium, is
supplemented by the products of the Dutch and Italian establishments.
The Zeoline production unit in Engis, near Liège, produces zeolites in a joint venture
with Prayon (50/50).
EUROPE
The French subsidiary Aliphos in Alsace produces potassium carbonate and potassium
di-carbonate, mainly for the production of cathode ray tubes.
The French subsidiary Produits Chimiques de Loos (PCL) in Loos, near Lille, produces
sodium sulphate and mineral chlorides (ferric, ammonium, zinc and aluminium
chloride).
Tessenderlo Chemie Rotterdam produces animal feed phosphates through the
chemical reaction of purified phosphoric acid and a calcium, magnesium or ammonium
source. The production is partly intended for export.
Tessenderlo Italia (Italphos) in Cologna Veneta also makes animal feed phosphates
on the basis of purified phosphoric acid. The production is intended for the markets
in Italy and neighbouring countries.
(*) You can find a complete overview of the group’s production units and sales offices on page 118

NORTH AMERICA
The American subsidiary Tessenderlo Kerley Inc. (TKI) is based in Phoenix, Arizona.
TKI is the world’s largest producer of ammonium thiosulphate (THIO-SUL ® , ATS) and
potassium thiosulphate (KTS ® ). TKI has 13 production plants in the United States.
These plants are generally located near refineries whose acidic gases TKI processes
into liquid sulphur-containing fertilisers and derivatives, the vast majority of which
(60%) are used in agriculture and the balance in process chemistry.
Electrolysis
BELGIUM
The establishment in Tessenderlo houses the group’s largest electrolysis unit, where
both caustic soda and caustic potash are prepared. It has an annual capacity of
250,000 tonnes of chlorine.
EUROPE
A second electrolysis unit is operational at PCL in Loos, France, with a total capacity
of 18,000 tonnes of chlorine. It produces caustic potash and potassium hydroxide
flakes.
Tessenderlo Italia in Pieve Vergonte, north of Milan, has a capacity of 40,000 tonnes
of chlorine, most of which is intended for internal use.
25

26
Trends and facts in 2003
Inorganic Chemicals
2003 saw the start of investments in projects that will become operational in various
units in the course of 2004. These were as follows:
– At Tessenderlo Chemie in Tessenderlo (Belgium), production capacity for ferric
chloride will increase by 25,000 tonnes between now and the middle of 2004;
– At PCL, in Loos (France), production capacity for ferric chloride will be increased by
60,000 tonnes. This operation – which is to be finalised in mid-2004 – will also
entail changes in the production process, involving the partial replacement of one
raw material – scrap – with iron oxide.
– At Tessenderlo Chemie in Ham (Belgium), new units for the production of hydrosoluble
potassium sulphate will come on line in late 2004. The current production
of the Tessenderlo unit will then be transferred to Ham.
An action plan was launched in the Belgian units in Ham and Tessenderlo in 2002
with a view to reducing fixed costs; it continued in 2003. This will make it possible to
improve profitability in the years ahead.
Among the units abroad, Tessenderlo Kerley continued to reap the rewards of diversifying
into services to the oil industry, so becoming less dependent on the fertiliser
market.
The various markets in which the division is active were generally rather lacklustre in
2003:
– Due to increased supply and a fall in demand in Europe, sales of phosphates of
mineral origin to animal feed producers were down. In the first half of the year,
production was boosted – principally in the Mediterranean area – by the advent of
new manufacturers and increased capacity among the existing operators. This
trend was initially reflected in fiercer competition and a sharp fall in prices in Spain;
this trend subsequently spread throughout Europe in the second half of the year,
and prices here plummeted. There was a parallel tail-off in demand for phosphates,
including in the Benelux countries, where there was an outbreak of bird flu in
2003. In addition, Europe lost some of its competitiveness in the poultry sector,
and is having to cope with ongoing relocation of manufacture of animal products;
– As concerns potassium sulphate, which is used in fertiliser production, it was possible
to limit the negative impact of the depreciation in the dollar by obtaining
supplies of potassium chloride from other sources, with many contracts priced in

dollars. The prices of other raw materials (sulphur and sulphuric acid) rose, and it
was difficult to pass these increases on in sales prices;
– The sodium sulphate market remained stable; sales were at the same level as in
2002, but prices were still generally unsatisfactory. Only part of the rise in raw
material prices could be passed on. What is more, this market is traditionally subject
to significant fluctuations, with detergent manufacturers changing their formulae
frequently;
– In the field of liquid sulphur-containing fertilisers, the positive trend in sales of
ammonium thiosulphate (ATS) continued in 2003.
Electrolysis
In late 2003, Tessenderlo Chemie in Tessenderlo obtained an environmental permit for
the construction of a new electrolysis unit. The project includes closing down the oldest
electrolysis unit and replacing it with a new unit using membrane technology,
called Ely III. The platform’s total chlorine production capacity will increase from
250,000 tonnes to 400,000 tonnes. As a result, the new membrane technology will
account for three quarts of production. Ely III will become operational in the middle of
2006: (See ‘Environment and Safety’ for more information on the discharge permits
granted to Tessenderlo Chemie at the same time as the environmental permit).
A notable feature is that PCL, at Loos in France, increased its production of potassium
hydroxide flakes by 8%.
The alkali division had a difficult year on the price front:
– Caustic soda prices fell in the first nine months of the year. Following a slight
upturn in the fourth quarter, prices started to fall again at the beginning of 2004.
This situation prompted the company to optimise use of its principal raw material,
electricity;
– Caustic potash prices were also under pressure, but price falls were limited.
27

28
Strategy and prospects
Prospects for 2004
In the first half of 2004, prices for phosphates went up. However, it is not certain that
these increases will suffice to offset the imbalance built up over time.
Despite keeping to the same strategy for supplies of potassium chloride, margins for
potassium sulphate will remain under pressure in 2004. This is due to both the
ongoing depreciation of the dollar and the very marked increase in marine freight
fuelled by the sharp upturn in Chinese trade. It is difficult to pass on the impact of
these two factors in prices to customers.
Electricity price trends will be an increasing source of concern. After falling in the initial
stages of the liberalisation of the energy markets, 2003 saw substantial increases
and this trend looks set to continue in 2004. The Belgian taxation plan, which was
amended in early 2004, even with a less negative impact on major industrial users
than was initially suggested, will have an important impact on the costs.
The market trend towards tailoring operations to stock-market performance is increasing
price volatility, and hence uncertainty too. More sophisticated methods of
managing this resource will be required in future.
In short, 2004 is likely to be another difficult year for the inorganic chemicals division.
Raw material prices, which are subject to cyclical trends, are once more on the
up. The weak dollar and the fact that higher raw material prices tend to take some
time to filter through into sales prices are the two major challenges facing the division,
more especially with regard to potassium sulphate.
The Competition Directorate General of the European Commission is since the beginning
of 2004, investigating compliance in the market for feed phosphates with existing
competition law. The company awaits the conclusions of this investigation.

Strategy
As mentioned above, Tessenderlo Group will have to face a number of different challenges with regard to its
sulphate and phosphate activities:
– Stagnating demand on the European fertiliser market;
– Rising prices for raw materials;
– A lower dollar;
– A loss of outlets due to the rise of new products and producers in countries with low production costs.
It is precisely for these reasons that the group must continue to improve productivity and further decrease
production costs in order to strengthen its sites in Limburg.
The major investment in a new electrolysis unit, Ely III, also has these aims in mind.
In the future, Ely III will benefit the whole of Tessenderlo Group’s integrated production system in West Limburg.
The ability to produce more chlorine increases the flexibility of Tessenderlo Chemie Tessenderlo,
Tessenderlo Chemie Ham and the Limburgse Vinyl Maatschappij (LVM). This will allow the various product
groups to coordinate their production rates better than ever before.
An important milestone was passed when the environmental permit was obtained for Ely III in Tessenderlo.
The new electrolysis unit, which involves investment of 150 million euro, highlights Tessenderlo Group’s ambition
of enhancing its position in the caustic potash market.
As previously mentioned, the group is also working on boosting its production of ferric chloride in
Tessenderlo (Belgium) and Loos (France). These two units are among Europe’s major production centres, and
cover markets where demand for products for water treatment is still rising. In order to increase its production
capacity, the group is to give priority to re-examining the processes used in its manufacturing units.
29

30
Activities and products
The Fine Chemicals division of Tessenderlo Group is based on three major business
units: organic chlorine derivatives, intermediates intended for the pharmaceutical and
perfume industries, and glycine. For several specialities Tessenderlo Group holds a
leading position on the world market.
Organic chlorine derivatives
Tessenderlo Group produces more than 100,000 tonnes of benzene and toluene
derivatives, as well as a number of products derived from these, such as benzyl
alcohol, benzaldehyde, phenylacetic acid and benzoyl chloride.
The processes applied in the various production units allow Tessenderlo Group to
deliver products of extremely highly purity, which meet the requirements of industries
such as pharmaceuticals, parapharmaceuticals, photography, the perfume industry
and fine chemicals in general.
Intermediates for the pharmaceutical and perfume industries
Tessenderlo Group produces organic intermediates and active substances for pharmaceutical
applications and the perfume industry. Two factories, in particular Calaire in
France and Farchemia in Italy, produce intermediates for antibiotics, and are privileged
suppliers to the major international pharmaceutical companies. Tessenderlo Fine
Chemicals in the United Kingdom specialises in synthetic products for the perfume
industry. These three sites use raw materials produced within Tessenderlo Group, and
thereby reap the rewards of the synergies that exist within the integrated group.
Glycine and its derivatives
Tessenderlo Group is the only European manufacturer of glycine. With a yearly production
capacity of 5,000 to 6,000 tonnes, Tessenderlo Group is also a major world
player in the glycine market.
Because of its properties as an antioxidant, preservative and sweetener, glycine has
many applications in both foodstuffs and animal feed. It is also used in pharmaceuticals
and agrochemicals.
FINE CHEMICALS
David Poynton,
director of the Fine
Chemicals division

‘Leveraging our technology and market positions across our production units
will create new opportunities for growth within the division.’
Fine Chemicals Turnover
(millions EUR)
2003 2002
Turnover 261 264
(millions EUR)
Ebitda 22 34
(millions EUR)
Tangible investments 21 14
(millions EUR)
Headcount 997 1,067
The most important production units (*)
Organic chlorine derivatives
300
250
200
150
100
50
0
261
94 95 96 97 98 99 00 01 02 03
Chemielim in the Dutch city of Maastricht produces benzyl alcohol and benzyl acetate. These products are
obtained from benzyl chloride produced at the factory in Tessenderlo.
Lianyungang Taile Chemical Factory in Taile, China, is the leading producer of benzyl chloride and benzaldehyde
in China.
Tessenderlo Chemie in Tessenderlo, Belgium, produces benzyl chloride and certain derivatives. The factory
also has an important pilot unit where industrial processes can be refined. Small campaigns of products can
be manufactured before scale-up at some point in the future.
In Pieve Vergonte, north of Milan, Tessenderlo Italia specialises in aromatic chlorine products, which are
used mainly in the manufacture of agrochemicals and pharmaceuticals.
In the United Kingdom, Tessenderlo UK in Widnes produces benzyl alcohol and chlorotoluenes, together
with various organo-chlorine derivatives.
(*) In alphabetical order by business unit. You can find a complete overview of the group’s production units and sales offices on page 118
31

32
Intermediates for the pharmaceutical and perfume industries
In Calais, France, Calaire synthesises fine chemicals for the pharmaceutical industry.
Here, for instance, phenylacetic acid – an intermediate for the production of antibiotics
– is manufactured from benzyl chloride produced at Tessenderlo.
In Loos, near Lille, Chemilyl produces oxalyl chloride and derivatives for the fine
chemicals and pharmaceutical industries.
In Treviglio, near Bergamo (Italy), Farchemia produces numerous intermediates and
active substances for the pharmaceutical industry.
Tessenderlo Fine Chemicals in Leek, United Kingdom, produces products destined
for the industrial sectors of flavour and fragrance, tobacco and pharmaceuticals. Once
again the raw materials originates primarily from other factories within Tessenderlo
Group.
Glycine
Tessenderlo Chemie in Tessenderlo (B) is the only producer of glycine and derivatives
in Europe, and a major player on the world market.
Trends and facts in 2003
A number of the markets the Fine Chemicals division of Tessenderlo Group serves
continued to experience difficult trading conditions. In the organic chlorine sector
severe increases in the price of both toluene and benzene depressed margins, as
these increases could not be passed on. Chinese competition in particular has resulted
in downward pressure on selling prices.
Within the pharmaceutical intermediates, the loss of sales of some intermediates
for the generic market has been somewhat balanced by the higher growth of a key
intermediate for a patented pharmaceutical, for which the group has a worldwide
leadership.
A product, used in the manufacture of aluminium bodied cars, has moved from the
development stage to regular production at the Tessenderlo Fine Chemicals facility.

As far as glycine is concerned, Tessenderlo Group continued to face extremely low prices from Chinese producers.
This had an impact on profitability. Cost reduction measures have been implemented.
Tessenderlo Group acquired the remaining shares in its Chinese manufacturing unit in Taile to become its sole
shareholder.
Investments were made in the various sites to increase the flexibility of some production units and to enable
the manufacture of new derivatives.
At Tessenderlo UK restructuring continued in order to optimise the production of chlorotoluenes within the
group. In the Widnes facility the company commissioned up a new production unit for the manufacture of
benzyl alcohol, a non toxic additive used in paints and fragrances and consumed in many other industrial
processes. The new unit, which boasts state of the art manufacturing technology, is the first major investment
by Tessenderlo Group in the Widnes facility since its acquisition in 2001.
Strategy and prospects
Tessenderlo Group will continue to expand production at the existing sites, where it has facilities for the treatment
of residual substances, and to expand its activities in derivatives of its key raw materials.
As in the past, it will examine opportunities to provide outsourcing facilities to both the pharmaceutical and
the aroma chemical industries. The business units will be supported by the central research laboratories and
the on-site technical teams, in both new product introductions and improvements and extensions of our
existing techniques and processes.
Tessenderlo Group continues to seek acquisitions that will create substantial synergies with the current production
units.
33

34
Activities and products
The PVC & Compounds division includes the vinyl chloride monomer (VCM), polyvinyl
chloride (PVC) and compounds business units.
VCM
The most important raw materials for producing VCM are chlorine or hydrochloric
acid and ethylene. Chlorine and hydrochloric acid are produced by the Inorganic
Chemicals division on the same site and delivered via an internal pipeline system to
the Limburgse Vinyl Maatschappij (LVM). This allows road transport to be avoided.
Ethylene is delivered via the pipeline grid of Aethylen Rohrleitung Gesellschaft (ARG).
Chlorine is produced in the group’s electrolysis units, while hydrochloric acid is a
by-product of the production of sulphates. In this way, a unique integration of raw
materials is achieved.
The annual VCM production capacity of Tessenderlo Group amounts to 550,000
tonnes.
PVC
The polymerisation of VCM to PVC is performed at two locations: in the Netherlands
and France. These two plants are among the largest in Europe. With a total capacity
of 450,000 tonnes, Tessenderlo Group is the sixth largest producer in the European
PVC market.
PVC, as it is produced by LVM within Tessenderlo Group, is one of the most versatile
plastic resins in the world. The possible applications are extremely broad ranging from
plastic pipe systems, window and door profiles and flexible and hard films, to sheathings
for cables and wires. In addition, LVM, in close collaboration with Tessenderlo
Group’s Plastics Converting division, is working on developing new grades for cuttingedge
technological applications in, for example, the car industry and the electronics
sector.
PVC & COMPOUNDS
Philippe Pôlet,
director of the PVC and
Compounds division

‘After three poor years in a row, markets and prices seem to be finally
improving. However, past experience has shown that we must remain cautious.
For this reason, we have to continue to focus on improving our productivity. If,
in addition, we can ensure that customers receive quality products and service,
there are grounds for hoping that the future will be brighter.’
PVC & Compounds Turnover
(millions EUR)
2003 2002
Turnover 341 298
(millions EUR)
Ebitda -2 15
(millions EUR)
Tangible investments 19 15
(millions EUR)
Headcount 796 748
Compounds
400
350
300
250
200
150
100
50
0
341
94 95 96 97 98 99 00 01 02 03
The heading ‘compounds’ covers various ready-to-use PVC mixtures as well as mixtures of thermoplastic elastomers,
which are intended primarily for the injection moulding and extrusion markets. They are mainly used
in the construction industry, the automotive sector and shoe manufacturing. The PVC division has an overall
capacity of 155,000 tonnes of compounds per annum, making Tessenderlo Group the fifth largest producer
in Europe.
PVC and compounds are sold via an international network consisting of the division’s own sales offices and
local specialized agents, who work on an exclusive basis with LVM for PVC and compounds.
35

36
The most important production units (*)
VCM
Tessenderlo Group’s unit for producing VCM, the Limburgse Vinyl Maatschappij
(LVM) in the Belgian town of Tessenderlo, has a capacity of 550,000 tonnes of VCM
per year. It is the largest in Europe.
PVC
LVM Limburg in Beek, the Netherlands, processes VCM into PVC. The VCM is delivered
via the world’s longest VCM pipeline for this kind of transport. LVM Limburg has
a capacity of 225,000 tonnes per annum.
The Société Artésienne de Vinyle (SAV) in Mazingarbe, France, also polymerises
VCM into PVC, again with a capacity of 225,000 tonnes. The VCM is delivered from
Tessenderlo via block trains.
Compounds
In addition to its activities in the plastics converting sector, the company, Plastival, in
Clerval, France also manufactures Marvyflo ® , a compound used for car dashboards,
on behalf of LVM.
Saplast in Strasbourg, France, and its subsidiary Europolymers have a compounding
capacity of around 75,000 tonnes on an annual basis. Saplast exclusively produces
PVC compounds in granulated form or as a premix for hard and flexible applications,
primarily in the construction sector and for cable production.
TCT Polska in the Polish town of Sochaczew, near Warsaw, produces 10,000 tonnes
of PVC compounds per annum.
(*) In alphabetical order by business unit. You can find a complete overview of the group’s production units and sales offices on page 118

The production of Technicompound, based in Doué-la-Fontaine (near Nantes), will be transferred to the
group’s other compound-manufacturing units during 2004. Technicompound produces 15,000 tonnes of
ready-to-use PVC compounds and thermoplastic elastomers annually. These are intended mainly for the injection
moulding and extrusion markets.
In Tiffauges, also in France, the subsidiary Thermoplastiques Cousin-Tessier specialises in PVC compounds
and thermoplastic elastomers for the automotive industry, the construction sector and shoe manufacturing.
Its capacity is 55,000 tonnes per year.
Trends and facts in 2003
VCM and PVC
Overall, the European markets remained volume-wise at the same level as in 2002, although the situation
varied significantly from one month to the next.
PVC and VCM prices fluctuated considerably in 2003, chiefly as a result of geopolitical factors.
Prices reached reasonable levels in the early part of the year. This was because customers were building up
stocks in front of the threat of war in Iraq. Although this boosted demand, it also prompted higher raw
material prices. As a result of this hoarding frenzy, PVC and VCM prices went into freefall in the second quarter,
with the official end of hostilities in Iraq. However, raw material prices remained high. Stocks had to be
replenished again in July and August, while prices dropped. After that, prices started increasing gradually,
resulting in break-even only in the fourth quarter.
37

38
In 2003, Tessenderlo Group continued its strategy of investing in order to boost productivity:
– There was further progress in the mid to long-term plan for VCM, which relates to
safety and the modification of existing installations to bring them in line with the
requirements of the Flemish environmental legislation, VLAREM;
– In the PVC business line, the third production line at Société Artésienne de Vinyle
(SAV) in Mazingarbe was switched to closed reactor technology. One of the advantages
of this is that it is much more environmentally friendly.
All in all, 2003 was the third disappointing year in a row for PVC and VCM, despite
the healthy outlook at the end of 2002. The disappointing figures were mainly attributable
to the very poor second and third quarter results.
Compounds
Generally speaking, compounds markets in Western Europe weakened. Demand for
shoe compounds also decreased, as a result of increasing imports of finished shoes
from Asia.
However, the division strengthened its position in the automotive sector – in the niche
market of dashboard skins and airbag covers – in 2003. PVC is becoming very popular
again in the automotive sector, and this has led to it being used for luxury models
such as the Porsche Cayenne and Volkswagen Phaeton. Sales of Marvyflo ® were up
considerably.
Following the takeover of the French Saplast in July 2002, investments were undertaken
in 2003 to adapt equipment to Tessenderlo Group’s high standards in respect of
safety, productivity and ecological soundness.
Range Rover

Strategy and prospects
VCM and PVC
Judging from the figures for the early part of 2004, the outlook for VCM and PVC activities appears to have
improved again after three poor years. Prices began to rise in the fourth quarter of 2003, and the trend in the
early part of 2004 has also been generally positive. In global market terms, production capacity appears to
have lagged behind market expansion, suggesting that capacity utilisation should increase throughout the
world in 2004.
In the coming years, LVM will further expand its position as a specialist in the area of suspension PVC.
In the future, Tessenderlo Group will also strive within the PVC division to maintain the highest possible productivity,
combined with constant improvement in the quality of its products. At the same time, the group
wants to offer its customers top-quality service, which satisfies all of their needs.
Compounds
The optimisation and rationalisation of the industrial organisation, which started in 2003 following the acquisition
of Saplast and Europolymers, will continue in 2004. The division will start to feel the positive impact of
this in 2005.
The commercial departments at subsidiaries Saplast and Thermoplastiques Cousin-Tessier were fully amalgamated
on 1 January 2004. This will ensure an optimum response to customer wishes and requirements,
which will in turn contribute to better results.
39

40
Activities and products
For nearly twenty years, Tessenderlo Group has resolutely pursued a downstream integration
policy. With this objective, in Europe and the United States of America we
have taken over several PVC converters holding numerous patents and registered
trademarks. These companies produce mainly pipes and fittings for water supply and
drainage systems, as well as pipe systems for (inter alia) gas and telecommunications.
In addition, all kinds of PVC profiles for building (such as door and window profiles)
are also produced. Besides PVC, these companies are also converting other raw materials,
including polyethylene and polypropylene.
The construction and renovation sectors represent almost the entire turnover of
Tessenderlo Group’s Plastics Converting division.
The most important establishments (*)
Profiles
Chelsea Building Products (CBP), in Oakmont in the USA, is one of the main American
manufacturers of PVC door and window profiles.
Tessenderlo Group is also present in Canada via Dynaplast-Extruco, a subsidiary of
the Wymar Group which specialises in PVC window profiles and other profiles for
various sectors.
In Great Britain, Fairbrook holds a leading position on the PVC profiles market.
Under the brand name Eurocell Profiles, Fairbrook produces window and door profiles.
Foamed profiles, which are used as roofing components and façade cladding,
are marketed as Eurocell Building Plastics. Under the name HL Plastics, Fairbrook
custom-produces profiles for a wide range of sectors, including the building and furniture
industries.
PLASTICS CONVERTING
In collaboration with the Brazilian company Medabil Plasticos, the subsidiary Medabil
Tessenderlo was set up in Brazil, where it specialises in manufacturing and marketing
PVC profiles. Medabil Tessenderlo is introducing PVC window profiles to the South
American markets.
(*) In alphabetical order by business unit. You can find a complete overview of the group’s establishments and
sales offices on page 118

Plastics Converting Turnover
(millions EUR)
2003 2002
Turnover 523 500
(millions EUR)
Ebitda 88 86
(millions EUR)
Tangible investments 36 29
(millions EUR)
Headcount 2,761 2,567
600
500
400
300
200
100
0
523
94 95 96 97 98 99 00 01 02 03
In Clerval (France), Plastival makes window and door profiles, along with profiles for fences, façade cladding
and various industrial applications.
Again in France, Profex, a subsidiary of the Wymar Group, markets window profiles produced by Wymar in
Belgium.
The Wymar Group in Oeselgem (Belgium) produces PVC profiles for windows and doors and continues its
development towards Eastern Europe notably in Poland, Hungary, Romania and the Czech Republic.
Plastic pipe systems
The Dutch company Dyka BV in Steenwijk manufactures PVC pipes and fittings.
Dyka Plastics in Overpelt (Belgium) is a manufacturer of PVC and polyethylene pipes for the construction industry
and civil engineering.
Dyka Polska in Jelcz Laskowice (Poland) makes PVC pipes, and also polyethylene and polypropylene pipes.
John Davidson Pipes is one of the UK’s leading distributors of plastic pipe systems, with some twenty depots
throughout the country.
In France, the subsidiary Sotra-Seperef has two establishments. In Sainte-Austreberthe, PVC materials are
manufactured for the construction and drilling markets. The unit in Quincieux produces a range of PVC and
polyethylene pipes for water supply and drainage. This range is supplemented by all kinds of accessories, and
is primarily intended for the public works sector.
41

42
Trends and facts in 2003
Profiles
Wymar had a good year, in both the Benelux countries and Eastern Europe. Volumes
in the Benelux countries matched those in 2002. In Russia, demand stabilised after
falling in 2002, and sales increased in the other Eastern European countries, especially
Poland. The French commercial subsidiary, Profex, also recorded sound growth.
Early in the year, Plastival (also in France) suffered as a result of the sluggishness in the
construction sector. However, following a recovery in the second half of the year, the
results for 2003 as a whole were quite respectable.
In the UK, Fairbrook managed to continue its growth, thanks partly to the expansion
of its distribution network. The success of profiles for use in the construction of conservatories
continued unabated. Sales of other new products first launched in 2002
also accelerated satisfactorily.
Chelsea Building Products (CBP) came under pressure – especially in the first half of
the year – as a result of the poor economic climate in the United States, which was
exacerbated by the war in Iraq. In addition, the company is mainly active in the northeastern
US, which experienced an unusually long and severe winter. The situation improved
in the second half of the year but, in spite of this, CBP only achieved modest
results for 2003 as a whole. The new range of products launched on the US market
was well received, but sales were lower than expected.
2003 was a comparatively poor year in Brazil due to the general economic downturn.

Conclusion: 2003 was a good year for profiles, mainly thanks to the European market, which more than
made up for the ongoing difficulties in America. Sales figures in Europe remained buoyant or increased further,
despite the weak construction sector.
Plastic pipe systems
Demand for plastic pipe systems in Belgium and the Netherlands bottomed out in 2003. There were even
signs of a slight upturn in the second half of the year. The closure of the plant at Goor in the Netherlands in
2002 resulted in higher profitability in the Benelux countries.
Dyka Polska, which took over part of Goor’s production, continued to expand its distribution network. Sales
figures increased in line with expectations.
2003 was a good year for pipe systems in the UK. The amalgamation of the business of Dyka UK and John
Davidson Pipes Ltd was finalised, thus resulting in the optimum synergy. John Davidson Pipes also took
advantage of the buoyant UK construction market to further its expansion.
Although sales dipped slightly in France, Tessenderlo Group succeeded in maintaining prices at the 2002
levels. Nevertheless, prices were still too low to generate adequate profitability. Competition among manufacturers
striving to maintain their market share continued in 2003. France remains a very difficult market
due to low prices and the highly concentrated distribution system.
Overall, the plastic pipe systems business line was able to maintain its results at the 2002 level. At the same
time, profitability improved due to cost-cutting measures.
In conclusion, turnover in the Plastics Converting division was slightly higher than in 2002, while the 2003
results were quite identical to the ones of the previous year.
43

44
Investments totaled 34 million EUR in 2003, as against 29 million EUR in the previous
year:
– At Eurocell Profiles, a division of Fairbrook, a new extrusion unit is built on the site
in Alfreton (UK). It will come on line in late 2004. This will mean Eurocell Profiles
increasing its production and storage capacity;
– Wymar International invested in a new PVC-profiles production line for frames and
doors with more effective thermal and acoustic insulation. Production capacity has
also been increased. With this investment, Wymar wishes to consolidate its market
share in the Benelux countries and France and boost its presence in the emerging
markets in Eastern Europe;
– In the United States, Chelsea Building Products is continuing to update its product
range, more especially in respect of new builds and renovations.
Strategy and prospects
Strategy
The strategy of the Plastics Converting division primarily includes:
– Consolidation of existing positions;
– Improvement of profitability;
– Promotion of internal growth;
– Strengthening the presence on emerging markets, primarily in Eastern Europe;
– A focus on acquisitions. In each case, companies which might qualify for takeover
are evaluated strictly on their own merits and on their potential synergies with the
other companies within Tessenderlo Group. The emphasis here is on the profiles
sector, without ruling out the possibility of takeovers in the pipes and fittings market.

Through investments, the division wishes to:
– Closely track market trends, anticipating these as far as possible;
– Remain at the cutting edge technologically;
– Develop instruments to ensure growth on emerging markets.
Prospects
As far as profiles are concerned, the situation in America is expected to improve, with higher volumes in both
the US and Brazil. In Europe, too, there are clear signs of further market expansion.
The markets for plastic pipe systems look set to stabilise again in 2004.
Tessenderlo Group has every confidence that 2004 will be a better year than 2003 for the entire division. This
optimism is justified by:
– The positive trend on the profiles market;
– The new range of profiles marketed by Wymar since early 2004;
– Updating of the product range in the United States, which will bear fruit in 2004;
– Growing economic optimism, which is having an especially positive impact on the construction sector.
The early part of 2004 has already provided confirmation of these positive forecasts.
45

46
Activities and products
NATURAL ORGANIC PRODUCTS
The Natural Organic Products division of Tessenderlo Group is the world’s third largest
producer of a full range of high-quality gelatins based on various raw materials.
Approximately two thirds of the production is used for the food industry, while the
remaining part is divided between the pharmaceutical and photographic industries.
In addition, Tessenderlo Group plays a role in the collection and treatment of animal
by-products.
A third, lesser-known activity is the formulation and production of ingredients for the
food products industry.
Gelatin
Gelatin is produced by hydrolysing collagen from by-products of slaughterhouses,
more specifically, the bones and skins of pigs and cattle. After degreasing, the bones
are demineralised with hydrochloric acid, resulting in collagen in the form of ossein
(a basic raw material for the production of gelatin), which is then rinsed and treated
with acid or lime. For pigskins and cattle hides, a similar process is applied from the
hydrolysis stage onwards.
Gelatin is an extremely pure product. To illustrate: the required purity standards are
ten to one hundred times stricter than those for baby milk, regardless of whether the
gelatin will be used in products for human consumption or not. That is why the
strictest criteria are used in:
– The selection of the raw materials: all gelatin is exclusively produced from pigskins,
cattle hides or bones coming from healthy animals which, after official and internal
testing, are declared fit for human consumption;
– The production process: this combines immersion in an acid bath with soaking in a
lime solution (only for bone gelatin), followed by UHT sterilisation of the purified
gelatin solution at 140° C.
Gelatin has various applications, all of which are based on the typical characteristics
of gelatin, namely gel strength, viscosity and purity:
– Food industry: for the production of sweets, desserts, milk products, jellies, ‘lowcalorie’
products, tinned meats, energy bars and drinks, meat preservatives and
wine clarification;
Jozef Housen,
director of the Natural
Organic Products division

‘The acquisition of the two American units has made Tessenderlo Group a fullyfledged
global operator on the gelatin market. Although both factories only
belonged to the group for nine months, they made a significant contribution
to the results in 2003, which is an outstanding performance.’
Natural Organic Products Turnover
(millions EUR)
– Pharmaceutical and parapharmaceutical industries: for the production of hard and soft capsules;
– Photography: gelatin is used to bind the photoactive silver compounds, and used as well in the various
layers of films, photographical paper and paper of inkjet printers;
– Micro-encapsulation: microscopic capsules which can contain (for example) ink for photocopying paper,
or vitamins which are mixed in animal feed.
By-products of animal origin
2003 2002
Turnover 313 261
(millions EUR)
Ebitda 57 53
(millions EUR)
Tangible investments 25 32
(millions EUR)
Headcount 1,853 1,547
Through its French subsidiary Caillaud, Tessenderlo Group plays a major role in the collection and treatment
of animal by-products. The annual capacity amounts to 950,000 tonnes.
Caillaud is active in two specific sectors:
94 95 96 97 98 99 00 01 02 03
– As a rendering plant, it handles the collection and treatment of risk waste, which is primarily used as an
energy source by the cement industry. This activity accounts for 36% of the turnover, and is a public
service, for which Caillaud is paid by the French State;
– The valorisation of animal materials, originating from animals that are fit for human consumption, into
• degreased bones for the production of gelatins;
• proteins and animal fats for use in pet food;
• fats for the soap industry and lipochemistry;
• frozen processed animal by-products for the production of ‘moist’ pet food.
350
300
250
200
150
100
50
0
313
47

48
Food ingredients
A third activity of the Natural Organic Products division is the formulation and production
of food ingredients. These are composed according to the individual needs of the
customer. They are offered in solid and liquid form, for both ‘sweet’ and ‘savoury’
applications, which include:
– Seasoning mixes;
– Ingredients containing sugars, proteins and starches, etc.;
– Prepared sauces in powder form;
– Aromas in liquid form;
– Sweet blends for the production of bavarois, pastry, ice cream, etc.;
– Salty blends with flavourings for the preparation of meat products.
The most important production units (*)
Gelatin
In Belgium, PB Gelatins in Vilvoorde makes acid gelatin from pigskins and pig bones.
In the bone-degreasing installation, pig bones are stripped of all fat. They are then
further processed into ossein in the ‘acidulation’ and ‘liming’ units.
PB Gelatins GmbH, based in Nienburg, Germany, and PB Gelatins UK, based in
Treforest, Wales, processes the ossein from Vilvoorde into gelatin. In Nienburg, gelatin
is also prepared from cattle hides and pigskins.
In Argentina, PB Leiner Argentina, which is located close to Santa Fe, manufactures
gelatin from cattle hide.
PB Leiner USA in Davenport, Iowa, produces gelatin from pigskin.
By-products of animal origin
In France, Caillaud has 12 treatment units (4 carcass disposal plants and 8 plants for
the valorisation of animal materials) and 28 collection centres.
(*) In alphabetical order by business unit. You can find a complete overview of the group’s production units and
sales offices on page 118

Food ingredients
Also in France, PB Gelatins France in Fürdenheim, near Strasbourg, produces seasoning blends for the food
sector.
Trends and facts in 2003
The Natural Organic Products division’s performance last year was in line with that in 2002. The lower figures
for by-products of animal origin were offset by increased gelatin operations.
PB Gelatins posted significantly better figures, due to the acquisition of two production units, one in the
United States and the other in Argentina, in early 2003. They were both part of the gelatin division of Goodman-Fielder,
an Australian company. The units in Davenport (US) and Santa Fe (Argentina) have a capacity of
10,000 tonnes and 5,000 tonnes of gelatin respectively. The gelatin produced is used in the food and pharmaceutical
industries. The plants in the USA and Argentina were rapidly incorporated into the group, and so
immediately made a positive contribution to the results.
With this takeover, Tessenderlo Group has strengthened its position as the third biggest supplier on the
international market, with a 12% share of global production. Thanks to the factories in North and South
America, PB Gelatins is now active on all world markets, and can meet the requirements of customers who
need a worldwide supply of gelatin.
In the wake of the BSE crisis in Europe, there has been increased demand for gelatin produced from pigskin.
In order to be able to accommodate this increase, the capacity of pigskin gelatin production was reinforced
on the Nienburg site in Germany in early 2003.
Most gelatin markets also displayed positive growth trends in 2003:
– The food gelatin market, which is not much affected by economic conditions, experienced slight growth,
from 2 to 3%. It became more difficult to sell gelatin with low gelling properties (the so-called ‘Bloom
value’) because of the ban on the use of cattle gelatin in the micro-encapsulation of vitamins for cattle
feed;
– Demand for hard capsules for medicines also underwent rapid growth in 2003. Here, there has been a
clear move away from cattle-derived gelatin to gelatin obtained from other raw materials, mainly pigskins
and pig bones;
– Despite the increasing success of digital photography, the photographic market for PB Gelatins continued
to display slight growth, particularly in the photographic paper sector;
49

50
– Sales of soft capsules, on the other hand, remained at the low levels seen in 2002.
Soft capsules are mainly used to encapsulate food supplements, and in specific
applications such as bath pearls and ‘paintballs’, and these markets are extremely
sensitive to the economic climate.
2003 was a very eventful year for raw materials used in the manufacture of gelatin.
Prices of cattle hides were already under pressure in the first quarter. This is a consequence
of the leather industry gradually moving out of Europe, resulting in higher
prices. The price of pigskins and bones also rose in the fourth quarter.
For Caillaud, the 2003 financial year was once more marked by ongoing changes in
legislation, which had an impact on volumes and operating conditions. For instance,
new hygiene rules were introduced for the collection and processing of animal byproducts.
The consequences of reforms in European agricultural policy are also starting
to affect developments in the stock-breeding sector.
In France, government aid to rendering plants and abattoirs for processing their animal
by-products is gradually being scaled back. These subsidies ceased entirely on
1 January 2004. As a result, Caillaud was forced to increase its charges for services to
abattoirs during the year.
In the meantime, the French authorities appear to be scaling down the excessive
health regulations. Nevertheless, there is still far more pressure on stock-breeding
enterprises in France than in other European Union countries.
Legislation on environmental protection is becoming stricter.
All of this meant that Caillaud group’s 2003 results were significantly down on previous
years. But the group has constantly endeavoured to adapt its operations in line
with the new legislation, and by making the investment required for this purpose. In
late spring, a new factory for the production of dry pet food started up in Javené. The
Montcoutant production unit was closed at the end of 2003.

Strategy and prospects
PB Gelatins’ sales of gelatin are expected to increase further in 2004, especially in the field of food gelatin
and hard capsules.
The ongoing low dollar-euro exchange rate will continue to have a limited impact. Both American companies
produce mainly for their home market, so they are not affected by the weaker dollar.
An isolated case of BSE (mad cow disease) came to light in North America towards the end of 2003, but this
did not affect Tessenderlo Group’s gelatin operations in America. The unit in Davenport manufactures gelatin
from pigskin, and the Santa Fe unit from cattle hides which, it is certain, cannot transmit BSE.
Production of gelatin from pigskin in Nienburg, Germany, will also continue to increase in 2004 (see also
‘Trends and facts in 2003’).
In the meantime, the programme for tightening up hygiene standards has progressed further. As a result of
training courses and investments, the rules in respect of risk analysis relating to food safety – the HACCP
rules – have been applied even more rigorously.
Since the takeover of the two American units, PB Gelatins can now claim to be a fully-fledged global operator
of the gelatin market. It will continue to build on this role in the future. PB Gelatins is also endeavouring
to improve its market competitiveness, by striving for even higher gelatin quality levels and by improving its
sales service where possible.
In 2004, Caillaud will continue its efforts to ensure strict compliance with regulations. These efforts are also
aimed at developing the level of specialisation in its operations, in the field of safe processing of hazardous
waste and in upgrading by-products from healthy animals.
With a number of commercial initiatives, services to abattoirs and manufacturers of animal food derived from
animal by-products will be further extended. In particular, Caillaud will ensure that production capacity is tailored
to global trends in volumes handled, and that it is spread as effectively as possible over the various sectors
in which the group is involved.
This will entail total investments of 24.3 million EUR in 2004.
51

PB Leiner Argentina
Santa Fe
ARGENTINA
With the acquisition of PB Leiner USA and PB
Leiner Argentina, Tessenderlo Group strengthens
its position as third largest producer of gelatin
worldwide. The group accounts for 12 percent of
the world gelatin production.
4

54
Employment
At the end of 2003, staff numbers at Tessenderlo Group had increased to 8,244.
In spite of the Focus restructuring programme affecting the units in Limburg, involving
a loss of jobs in Tessenderlo Chemie and LVM during the year, the group’s total
headcount increased by 310.
As in previous years, the Plastics Converting division accounted for some of this
increase. The impact of the closure of Dyka BV in Goor (the Netherlands) was more
than offset by the expansion in business, especially at Fairbrook in the UK.
However, the gelatin activity recorded the highest increase in personnel. This was
entirely due to the takeover of production units in the US and Argentina in early
2003.
Social relations
Negotiations on a number of Collective Labour Agreements (CLAs) were held in
Belgium during the year.
In the foreign subsidiaries, extensions to the existing CLAs were negotiated without
any major problems. In late 2003, early 2004, another five-year agreement was negotiated
at PB Leiner USA, thus successfully rounding off the integration process following
the acquisition.
Human Resources Policy
Investment in staff training, both at technical level and in management and leadership
skills, continued unabated in 2003.
Focus is increasingly put on non-statutory benefits such as pensions and insurances.
A start was made on implementing the SAP-HR module in the Belgian units of
Tessenderlo Chemie and LVM. The fact that information is more easily accessible
should mean more effective personnel policy in the long run.
HUMAN RESOURCES

Employment per division Employment per country
3000
2500
2000
1500
1000
500
0
10000
8000
6000
4000
2000
0
2761
Plastics Converting
1853
Natural Organic
Products
1816
Inorganic Chemicals
997
796
94 95 96 97 98 99 00 01 02 03
Abroad
Belgium
Sales (millions EUR)
Fine Chemicals
PVC & Compounds
Evolution of the consolidated
data Belgium and abroad for
the employment and sales*
*Since 2003 the sales offices have been
consolidated
1972
2186
5975
2000
1500
1000
3000
2500
2000
1500
1000
500
Capital increase reserved for staff
For the fifteenth consecutive year, Tessenderlo Group made a
capital increase reserved exclusively for group employees in 2003.
The new shares were offered at a 20% discount. The take-up rate
was more than 92%. Compared with 2002, the number of shares
increased by 35%, while there was little change in the number of
employees participating.
0
2628
2163
1344
604
560
370
252
122
101
79
France
Belgium
United Kingdom
North America
Netherlands
Italy
South America
Others
Germany
China
55

56
ENVIRONMENT AND SAFETY
Sustainable enterprise with care for human beings and
the environment
Manufacturing in a way that bears responsibility for the environment, the safety and
health of employees and the general population is a fundamental condition for all of
Tessenderlo Group’s industrial activities.
Tessenderlo Group subscribes to the ‘Responsible Care’ obligation the chemical industry
has assumed throughout the world to deal responsibly and carefully with the
environment, safety and health. Within the parameters of this ‘sustainable enterprise’
principle, the group undertakes to do everything necessary in order to:
– Further reduce the impact of its activities on environment and health;
– Guarantee the safety and health of employees, suppliers and local residents;
– Strictly observe the legal guidelines, and where possible take additional measures;
– Strive to achieve further waste reduction, and process the waste in accordance
with legal standards and in a safe and environmentally-friendly manner;
– Use natural resources and energy as efficiently as possible;
– Conduct an open and honest dialogue with the government and other involved
parties.
Thus, Tessenderlo Group works in accordance with the ‘Best Available Techniques’
principle. Thanks to constant consultation between the environment department,
the laboratories and the production and maintenance departments, the production
processes are constantly adapted to the latest technological knowledge. Each year
the group allocates substantial resources for this purpose.
However, the development of environmentally-friendly and sustainable techniques,
and the optimisation of the installations, are only feasible if each employee is closely
involved in the environmental policy. Tessenderlo Group therefore also invests in targeted
training programmes for its employees, so that the ‘Best Available Techniques’
are carefully used on a day-to-day basis.
Tessenderlo Group is also aware of the social role that it has to fulfil, and is therefore
undertaking a variety of initiatives in relation to the local community in the areas
around the different branches. Tessenderlo Group considers it important to develop
good cooperation with educational institutions. Numerous visits to Tessenderlo
Chemie in Tessenderlo and Ham (Belgium) take place every year. In many cases, the
visitors are students from schools in the surrounding area. A visit gives them the opportunity
to get to know the world of chemistry and its wide-ranging applications in
everyday life, and also the group’s efforts in the area of the environment. Overall,

75 groups visited the units in West Limburg between 2000 and 2003. Tessenderlo Chemie employees also sit
on local education advisory committees, in order to promote collaboration between educational institutions
and the business community.
Tessenderlo Group is also actively involved in the ‘Chemistry and Youth’ project run by Fedichem, the Federation
of the Belgian Chemical Industries. As part of this project, some twenty company employees visit schools
to provide students with information on day-to-day life and employment opportunities in the company. A total
of 32 lectures were given in 2003.
In addition, Tessenderlo Chemie supports a variety of charitable and cultural initiatives in the local community.
In its support of sports clubs, it attaches particular importance to the commitment these clubs show to young
people.
Environmental protection: a matter of ongoing efforts (*)
In the last 10 years, Tessenderlo Group has invested more than 160 million EUR in environmental projects in
the various units. Thanks to these investments, the treatment processes were further optimised. This led to
a significant improvement in waste water quality, and a constant reduction in atmospheric emissions. Major
advances have also been made in the areas of soil and noise pollution. In addition, solid waste is being
removed in an ecologically responsible manner.
After sharply curtailing channeled atmospheric emissions over the past few decades, attention has increasingly
focused on non-channelled emissions in recent years. Fugitive emissions at Limburgse Vinyl Maatschappij
(LVM) were further reduced through effective measurement and a targeted maintenance programme.
The pollutants that are present in water are largely removed by the treatment methods applied. At the
Tessenderlo Group companies in West Limburg, the effluent quality remains comparable to that of seawater,
due to the presence of salts. But even here there have been favourable reports in recent years, to the effect
that the impact of the salt discharges on the quality of the river water remains limited. Experts from the University
of Antwerp have done extensive research on the fish stocks in the Nete River. This demonstrates that
(*) The results of Tessenderlo Group’s environmental efforts in West Limburg are set forth in detail in our environment report, which is published
on a regular basis, and which can also be consulted on our website: www.tessenderlogroup.com. Visitors to the site will also find tables and
graphs of the most recent environmental measurements.
57

58
the discharge of these salty effluents has no impact on the fish population in the
Nete. Both above and below the mouth of the Laak – which carries the salty water
into the Nete – one finds equal numbers of healthy freshwater fish.
In collaboration with the government and external experts, a number of soil clean-up
projects are under way in Tessenderlo and Ham (Belgium). Clean-up measures are currently
being implemented at the Tessenderlo Chemie site in Ham.
The PVC and Plastics Converting divisions constantly strive to inform the public and
the media about PVC’s favourable environmental aspects. In 1995, Tessenderlo Group
signed the ‘Voluntary Charter’ for the production of VCM and suspension PVC. Under
this charter, the participating companies undertake that, in all production activities,
they will observe environmental standards, which are stricter than the locally or nationally
applicable regulations.
In accordance with the charter, Tessenderlo Group subscribed to the so-called ‘Voluntary
Commitment’ in March 2000. This involves all parties involved in the PVC chain:
producers of PVC, plasticisers and stabilisers, and PVC converters. The ‘Voluntary
Commitment’ contains formal and verifiable objectives relating to the entire PVC life
cycle. In October 2001, the original ‘Voluntary Commitment’ was improved following
consultation with the European Commission. This resulted in the publication of ‘Vinyl
2010’. Tessenderlo Group is helping to realise the objectives by financing ‘Vinyl 2010’
projects, such as the recycling of post-use PVC. The group is also actively involved in
setting up national collection and recycling systems for PVC waste.
Following the publication of its Green Paper on ‘Environmental Issues of PVC’ in
2000, the European Commission has yet to take an official stance. The PVC industry
sees the ‘Voluntary Commitment’ (Vinyl 2010) as the most feasible answer to the
questions posed in the Green Paper, and anticipates that this will be confirmed by the
Commission.

COD* Concentration in mg/l,
annual average TCT/LVM
effluent
200
150
100
50
0
94 95 96 97 98 99 00 01 02 03
* COD: Chemical Oxygen Demand
Facts in 2003
35
Nitrogen Concentration in
mg/l, TCT/LVM effluent
94 95 96 97 98 99 00 01 02 03
In late December, the Flemish Minister of the Environment, granted Tessenderlo Chemie an environmental
and discharge permit:
– The environmental permit means that a start can be made on constructing the new Ely III electrolysis unit
in Tessenderlo. The unit will manufacture chlorine using advanced membrane technology, which has many
environmental benefits. For instance, it does not use mercury cells, and consumes less electricity. Three
quarters of the total chlorine production in Tessenderlo will be switched to this new technology. The new
unit will also mean improvements in terms of safety and mobility. For instance, supplies of salt for Ely III
will not be transported by lorry between Ham and Tessenderlo, but by a pipeline;
– Tessenderlo Chemie’s discharge permit has been updated. It stipulates that the basic quality for fresh surface
water in the Laak and the Winterbeek must be achieved by 2011 at the latest. An in-depth study will
examine all possible scenarios (See also ‘Prospects and strategy’).
In 2003, it was ascertained that the banks of the Laak and the Winterbeek had been polluted as a result of
earlier discharges, between 1920 and 1986, for which Tessenderlo Chemie complied with the discharge standards.
A solution is to be found in consultation with the government.
24
18
12
6
0
6
59

60
The Environmental Inspection department of Aminal, the Flemish environmental
agency, carried out an investigation into the possibility of reducing industrial waste
water at Tessenderlo Chemie in Ham (TCH), along with a potential reduction in salt
discharges. The study concluded that:
– The processing at TCH has already been improved to such an extent that water
consumption has been cut to a minimum;
– A further reduction in discharges is technically possible, but this is not economically
viable.
In 2003, a preparatory soil survey was undertaken for LVM, the aim being to obtain
an accurate picture of the present situation with regard to soil and groundwater pollution,
and to prepare potential clean-up measures.
Together with the University of Ghent, LVM is working on a project for using new
environmentally-friendly technology in cleaning up soil and water with the help of
bacteria. Investigators from the university succeeded in isolating a bacterium in soil
samples that rapidly breaks down the dichloroethane in the presence of oxygen, without
producing any undesirable by-products. The practical feasibility of this discovery is
being further examined along with the Flemish Waste Company (OVAM).
In October 2003, PB Gelatins in Vilvoorde decided to invest more than a million euro
in order to further reduce the odour nuisance affecting those living in the vicinity. This
decision followed a study by the Flemish Institute for Technological Research (VITO)
commissioned by Aminal’s Environmental Inspection department. The investment will
principally involve covering the extraction hoods in the waste purification station, extending
the extraction installations and treating of the exhaust air. All these measures
will be finalised by the middle of 2004.
As far as the PVC division is concerned, the publication of the third progress report
in April 2003 is an essential part of the PVC industry’s ‘Voluntary Commitment’. The
report details the progress with regard to the proposed goals and projects. Independent
verification by Det Norske Veritas (DNV) will boost confidence among the parties
involved. It demonstrates that the PVC industry intends to cooperate openly with all
parties concerned.

Focus on energy at Tessenderlo Group
The recent developments in European legislation on energy have not gone unnoticed at Tessenderlo Group,
especially with regard to the implementation of the policy on climate change as of 2005 (EU directive for
greenhouse gas emission allowance trading) and the step-by-step liberalisation of the gas and electricity
markets (since the year 2000).
Tessenderlo Group has had an effective energy-reduction policy in place at its various production sites for a
number of years. This policy is primarily focused on two areas: using the absolute minimum amount of
energy in manufacturing processes with the use of Best Available Technology and aggressively procuring
energy in the newly-opened markets.
Energy consumption
Various Tessenderlo Group divisions consume large quantities of energy. The largest consumers within the
group are located in Belgium.
In the electrolysis units, especially those in Tessenderlo, electrical energy is used in the production of chlorine
and caustic soda.
The most significant use of fossil fuels involves consumption of natural gas at Limburgse Vinyl Maatschappij
(LVM), and fuel oil consumption in sulphate production.
The fine chemicals division and LVM also use considerable quantities of steam for distillation processes.
In view of the substantial quantity of energy and the corresponding production costs that are involved, an
active policy of energy savings has been initiated wherever feasible.
Heat is recycled in a number of different processes, either directly through product integration or through the
exchange of steam.
In sites where there is surplus steam – Tessenderlo Chemie Ham, for instance – this is converted into electricity.
Where the local steam consumption profile permits, co-generation of steam and electricity is used (at SAV in
France, for example).
The Pieve Vergonte site in Italy generates its own electricity with its recently upgraded hydro-electric power
stations.
61

62
Energy and climate policy
The Flemish production sites of Tessenderlo Group have signed an energy efficiency
benchmarking covenant in September 2003. These units account for the overwhelming
majority of energy consumption.
Under this covenant, these sites have committed themselves to being among the
world-wide leaders in economical energy consumption, at the latest by 2012.
The energy consumption of these sites is monitored by external benchmarking studies
and independent audits. The government will use these controlled studies as a basis
for implementation of the climate policy, such as allocation of CO 2 emission rights
and energy duties. This will determine the industry’s economic potential for CO 2 savings,
and will distribute the burdens equally. It will allow the utilisation of existing
energy-efficient production capacity and for energy-efficient expansion of industry.
In 2003, external auditors carried out energy studies in the different Tessenderlo
Group production units in Flanders.
These studies were submitted to the verification bureau and several have now been
approved. They form the basis for an energy efficiency plan, which will document
the actions to be undertaken by the various sites, to become or remain a worldwide
leader at the latest by 2012.
As a consequence, Tessenderlo Group has a very clear view of its current energy profile,
as well as the path that will be followed in the near future.
The recent decision for building a new electrolysis unit in Tessenderlo, based on membrane
technology (ELY III) will contribute to realising the energy policy of Tessenderlo
Group.
Energy procurement
As a result of the phased liberalisation in the various member states of the European
Union, Tessenderlo Group will purchase more than 90% of its electricity and gas on
the open market in 2004. Tessenderlo Group will be managing these purchases
locally, with centralised support.

Belgium, and also Italy, still form a relatively protected price zone with regard to electricity, due to the limited
competition possibilities. It is therefore difficult to view the present situation as a genuine single European
market.
Tessenderlo Group would like the regulators to oversee an improvement in the way the market operates. In
Belgium, governments were called upon for allocating the additional costs of their energy policy even and
fairly among the various market operators.
Prospects and strategy
Tessenderlo Group strives to limit the impact of its activities on the environment as much as possible, and
does indeed go further than the law requires in this respect. Great efforts will also be made in the future to
adapt the installations to the current state of technology, and to reduce atmospheric emissions and effluent
discharges to the feasible minima.
For instance, a study will be carried out into discharges in 2004, in accordance with the discharge permit
approved in late December 2003. This study will be broadly based and will consider the various discharge
scenarios, ranging from solutions within the production process to the impact of alternative discharges. The
study may form the basis for a lasting solution to the problem of salt discharges. The study will be finalised
by the end of 2004, so that measures can be implemented by 2011.
As concerns the pollution along the banks of the Laak and the Winterbeek, which was largely the result of
historical discharges, Tessenderlo Chemie is prepared to cooperate in further soil and groundwater surveys. In
recent years, Tessenderlo Chemie has shown on numerous occasions that it is prepared to assume its responsibilities
in respect of the environment, and also wishes to cooperate in cleaning up some of the industrial
damage from the past.
At LVM, attention will focus on further reducing fugitive emissions, and clean-up measures relating to soil
and groundwater pollution will be prepared.
Finally, with regard to PVC, Tessenderlo Group will continue, together with the PVC industry, to work towards
realising the objectives laid down in the ‘Voluntary Commitment’. The annual progress reports are evidence
of this. The PVC industry is thus endeavouring to give the European Union a clear signal in relation to its
efforts in the field of sustainable development.
63

64
Safety
Recent achievements and ongoing efforts
Since 1997, the safety policy for Tessenderlo Group’s Belgian sites has been reworked
into a structured and dynamic safety management system, which also aims to further
reduce the number of accidents and incidents in coming years.
All accidents can be prevented. That is why not only accidents involving lost working
days are systematically studied, but also all incidents and treatments are analysed, so
that the necessary prevention measures can be taken. Wherever necessary, the lessons
learned are communicated to the sister companies. At each site, the reporting of
near-accidents is also encouraged. After all, that is a key element for a ‘learning organisation’.
In the table on the facing page you will find statistics on the accidents in
the group’s Belgian establishments.
Each company has an annual safety action plan, which is deduced from a five-year
Global Prevention Plan, and supplemented with improvement actions for controlling
specific risks.
A European ‘Seveso’ directive aimed at protecting human beings and the environment
against the consequences of incidents involving hazardous substances is in
effect in a number of Tessenderlo Group companies. In practice, additional requirements
have been laid down for safety reports and the safety management system.
The supervisory authorities perform regular audits, and frequently inspect and verify
installations and safety measures. The dynamic approach to safety within these group
companies is positively evaluated.
In the event of an incident, all employees must know what action to take. With that
objective in mind, annual exercises are held to test readiness. Sometimes the exercises
are held in collaboration with external emergency services. The training and education
programmes are – just like the resources provided for the intervention teams – tailored
to the specific accident scenarios of each plant.
The Belgian Tessenderlo Group sites have also signed a cooperation agreement with
the government project ‘Belintra’. This is a Belgian structured system for assistance
from the chemical sector in the event of accidents involving the transport of hazardous
products. Tessenderlo Chemie cooperates with the official emergency services,
and if necessary provides specialised personnel and equipment.
Photo M. Dalemans

Frequency Rate of Work
Accidents in Belgium
36
27
18
9
0
11.01
8.86
TC Tessenderlo
2002
2003
33.79
24.84
TC Ham
At the West Limburg platforms, a control and prevention system is in place to prevent road accidents.
Hauliers are subjected to systematic checks relating to possible infringements of European legislation in
the area of the transport of hazardous goods by road (so-called ‘ADR legislation’). Tessenderlo Chemie also
provides ADR training programmes for both its own employees and external workers.
Facts in 2003
14.45
8.01
LVM
36.30
10.26
TC Vilvoorde
Thanks to its strict prevention measures, Tessenderlo Group was once again spared from any serious accidents
in 2003. There was a sharp fall in the frequency of industrial accidents causing stoppage at all the
Belgian sites (see graph).
Nor were there any major losses. In 2003, significant efforts were undertaken to increase the safety levels in
the various Tessenderlo Group units.
The leaders of the internal intervention teams of the ‘Seveso’ companies – TCT and LVM – were given special
training in industrial fire prevention.
The rate of breaches of the ADR regulations by hauliers was 2.76%, which means that Tessenderlo Chemie’s
performance is better than the national average.
65

66
RESEARCH AND DEVELOPMENT
The total research and development budget, including the salaries of some 300 employees,
is almost 27.4 million EUR. Targeted investments guarantee modern, wellequipped
laboratories and pilot laboratories, enabling Tessenderlo Group to manage
its future direction independently.
The research undertaken within Tessenderlo Group is largely directed from the research
laboratories in Tessenderlo (B). There, around 140 people work on continuous
optimisation of the existing processes, in order to reinforce the group’s market position.
In addition, a number of new processes are being studied for the production of new
derivatives for the group, which are complementary to the existing range. This work is
carried out in collaboration with smaller research groups located abroad, primarily in
Great Britain, France and Italy.
The largest share of the budget is devoted to highly pragmatic applied research, and
to technical assistance to the sales and production departments. With that objective
in mind, Tessenderlo Group possesses a number of pilot laboratories, which can
quickly and flexibly produce sizeable quantities of new products. By quickly moving
beyond the phase of laboratory research and offering commercial quantities, we can
respond very effectively to market demands.
Basic research is conducted largely in co-operation with universities and research
centres at home and abroad. This work on new technologies will, over the medium
term, augment the range of techniques at the group’s disposal. This research focuses
on hydrogenation, gas phase reactions and enzymatic reactions. These technologies
will permit Tessenderlo Group to further evolve in the direction of end products with a
higher added value. Further basic research into the nature and stability of the suspension
during the polymerisation of PVC should allow PVC production to be more effectively
managed and greater consistency to be achieved.
The following were points of special consideration within the various divisions in
2003:

R&D Expenditures in 2003
27,4 millions EUR
40
30
20
10
0
36%
Fine Chemicals
33%
PVC & Plastics Converting
22%
Inorganic Chemicals
9%
Natural Organic Products
Inorganic Chemicals
In order to minimise variations in production quality, the research team, together with the quality control
unit, has introduced an on-line system of statistical process control in all the inorganic divisions of the West
Limburg platforms. In the long run, this will increase operational safety and help reduce production costs. It
will also contribute towards the consolidation of inorganic operations in this area.
Ongoing targeted research into phosphates for livestock feed that is more easily digestible (‘bio-availability’)
should enable Tessenderlo Group to meet increasingly stringent customer requirements.
A new process for manufacturing ferric chloride – using alternative, cheaper raw materials – has been
finalised in the pilot laboratory. This will entail investment in one of the subsidiaries in 2004.
67

68
Fine Chemicals
In 2003, major efforts were focused on improving the quality of chlorinated toluene
derivatives in the UK and tailoring products more closely to market requirements. This
has a dual advantage. Firstly, a number of customers can be served direct from the
subsidiary in Widnes (England). Secondly, the new benzyl alcohol unit in Widnes,
which came on line in early 2004, can rely on supplies of the best possible raw material
precursor from the Widnes site. This operation progressed very quickly thanks to
research and production being closely coordinated. At the same time, a feasibility
study was undertaken to ascertain whether a number of other smaller-volume chlorinated
products with higher added value, could be manufactured in the existing
Widnes unit. Some of these will be produced as early as 2004.
A less common method for producing benzaldehyde from chlorinated intermediaries
made the product range more balanced, gearing it more effectively to market conditions.
This immediately opened up the possibility of manufacturing a new series of
acid chlorides, without the need for major investment. The quality of the benzaldehyde
in the UK is more in line with that from Tessenderlo, providing opportunities for
UK customers to be supplied direct from Widnes.
A new hydrodehalogenation unit, the technique for which was developed in the laboratory,
was successfully launched in Italy. The research team firmly believes that the
equipment's output can be further boosted. This will allow a number of waste
streams to be processed in an ecologically sound manner, which will also result in
reduced consumption of raw materials. The same technique is also being used to
achieve the best possible balance between chlorinated products and market demand.
In addition, work continued on developing a number of aromatic substances in 2003.
Pilot production of these will start in 2004. It should be possible for these high-grade
perfume additives to be produced on an industrial scale in the near future.
In 2003, a number of new active ingredients, or their intermediates, were once again
brought into production in the pharmaceutical subsidiaries Farchemia (Italy) and
Calaire Chimie (France). Some of these are being developed in-house, whilst others
are being entrusted to Tessenderlo Group by the pharmaceutical companies. Minor
adjustments resulted in more efficient processes or higher output.
Finally, the division's pilot installations were extended last year, in order to increase
their scope of application.

Natural Organic Products
New formulae have been developed in food applications, especially in the field of speciality gelatins. These
have been offered to a number of customers for further development of market-ready products.
Tests have been started on specific cosmetic applications.
The first phase of the laboratory trials relating to the use of less traditional raw materials for gelatin has been
finalised.
Initial production tests relating to an alternative formula for the manufacture of hydrolysates were carried out
at the Nienburg production unit. Along with a number of refinements to existing production and applications
formulae, this should result in quality which fulfils the high requirements in terms of optical and organoleptic
properties. The first exchange of know-how with PB Leiner USA, the American subsidiary, concerning production
of hydrolysates is already starting to bear fruit.
Development of hydrolysates for pharmaceutical applications (plasma expander) has been put into production
following a series of pilot tests. Customers can now proceed with certification of their end product. This
called for the development of new methods of analysis. In addition, the quality and research team provided
the production and sales department with the requisite support and technical advice. This was essential to be
able to take advantage of the permanent changes in the field of quality requirements and legislation.
2003 was marked by the further introduction of new gelatin qualities to a European producer of photographic
materials. The gelatin manufactured by PB Gelatins was also successfully used in paper for the
newest inkjet printers.
The gelatin division is also focusing attention on the quality standards for by-products such as fat and bone
meal. By optimising some production parameters, market outlets were safeguarded and even extended.
PVC and Compounds
In the past year, productivity in the PVC units increased considerably, without any additional investment. Production
costs were reduced by using new, more efficient, cheaper polymerisation additives. Close collaboration
between the various research and production teams resulted in productivity increasing by almost 10%
and the additive costs for each kilogram of PVC being reduced.
All of this was only possible as a result of thorough preparatory work in the pilot installations and support in
the labs for practical research and product development, during both preparation and implementation. Consistent
product quality was a crucial concern in this.
69

70
A significant improvement in respect of environmental and safety aspects was
achieved by means of the phased introduction of new techniques for reactors and use
of a more efficient polymerisation killer.
The amalgamation of the fundamental and applied research departments should result
in scientific acumen and practical knowledge being more readily available.
Centralising the PVC compound operations has inevitably had consequences for the
research team. The emphasis has been on technical support to a broader range of
customers, with more product types. The training of new sales staff was given top priority.
Major achievements included coated fabrics and sealant profiles for frames
(Marvylex ® compounds with rubber-like properties).
The number of car models using Tessenderlo Group’s PVC dashboard compound continues
to increase. Sales of Marvyflo ® increased for the fourth consecutive year. This
was mainly due to new car models being launched. Colours that are light, critical and
difficult to produce are gaining in popularity, which calls for developing better colourings.
These developments, which occurred in close collaboration with car manufacturers,
were in line with customer requirements. They are intended to continue to push back
the frontiers for the use of PVC in car interiors.
Plastics Converting
The collaboration between PVC operations and the subsidiaries involved in plastics
converting should, in the long term, mean a better understanding of the conversion
techniques and the development of formulae with more potential applications.
The PVC industry has committed itself to a voluntary undertaking to phase out lead in
PVC mixtures. Against this backdrop, new stabilisers for PVC in formulae for frame
profiles, tubes and seals were tested for properties and conversion potential. Industrial
tests will optimise the usability of these products.

Control laboratories and quality
Targeted research helps guarantee that Tessenderlo Group remains strong. Modern, well-equipped and efficient
control laboratories are an indispensable tool in this effort. During the past year, work continued in the
central control laboratory on introducing so-called ‘Good Laboratory Practices’ (GLP) and the ISO 9001 –
2000 quality standards.
Prompt cross-border communication between the various control laboratories remains an indispensable part
of this effort.
In 2003, the control laboratories concentrated their efforts on increasing efficiency. The Laboratorium Informatica
Managementsysteem (LIMS information system), which had already been introduced in the environmental
control laboratory and meant another major step towards increased efficiency and quality, will now
also be used for production analysis and analyses for the subsidiaries. At the same time, further automation
was achieved by linking up analytical devices to LIMS, so that it is now possible for a range of devices to
transfer results automatically.
In early 2003, Tessenderlo Group’s environmental control laboratory was awarded ISO 17025 certification by
Beltest for the implementation of emission measurements. This means international recognition of the
group’s technical competence. This quality system will be expanded to cover water analysis.
In addition, the environmental control laboratory’s methods for measuring water and emissions have been
approved under the VLAREM legislation; this applies to all subsidiaries that are required to comply with this
legislation.
During the past year, the quality department assisted several departments in developing, implementing or
maintaining a quality management system based on the internationally recognised EN-ISO 29 000 standard,
and in obtaining the required product certification. All current systems were adapted in line with the new ISO
9001 – 2000 standards before the cut-off date of 15 December 2003. As required by the standard, all research
and development operations were included in the quality management systems.
The integration of ‘Good Manufacturing Practices’ (GMP) into our quality systems and the implementation of
risk analyses relating to food safety (HACCP) offer further quality guarantees, which are highly appreciated by
customers.
At PB Gelatins, the EDQM certificates – which are indispensable for pharmaceutical gelatins – were updated.
Steps were taken to also achieve this for the subsidiaries in North and South America that were taken over
during 2003.
71

72
Transparent management
CORPORATE GOVERNANCE
In compliance with the recommendations of the BSX market authorities and the
Belgian Corporate Governance Commission, Tessenderlo Group seeks to optimise the
administration and management of its operations in accordance with the principles of
´corporate governance´. These entail that a company be managed in an ethically
responsible manner. This is a fundamental condition for optimal use of the financial
resources, which the shareholders furnish to the company.
Establishing rules for organisation and functioning makes the decision-making
process within the Board of Directors and the various committees more transparent.
At the same time, this ensures that the interests of the shareholders, and those of all
parties who, directly or indirectly, are involved with the company – the so-called
´stakeholders´ – are taken into account.
Meeting this objective is also a matter of the inherent quality of the information provided,
which is considered an essential element of the corporate communication.
Based on the financial agenda, which is presented at each annual General Meeting,
the consolidated financial results, together with an activity report from the group´s
various divisions, are distributed in the form of a press release. This is simultaneously
published on the Tessenderlo Group website: www.tessenderlogroup.com.
The annual reports of the General Meeting are sent to all shareholders holding registered
shares, as well as to all investors and other interested parties. The annual
reports can also be consulted on the website: www.tessenderlogroup.com.
Remuneration policy for the members of the Board of Directors and the
Management Committee
The remuneration of the members of the Board of Directors consists mainly of fees,
which have been unchanged for each board member since the year 2000. For the
2003 financial year, fees amount to a total of 506,416 EUR. No loans or guarantees
have been granted to any board members by any group companies.
The remuneration of the members of the Management Committee consists of both a
fixed element and a variable element, which is dependent either on the results of the
group or on individual performance, and on average this can represent 20% of the
fixed remuneration. These directors also participate in a stock option scheme. Within
this framework, a total of 19,400 warrants, each entitling the holder to subscribe for

one new share, have been granted to the members of the Management Committee in 2003. All of these
elements have been approved by the Remuneration Committee.
The Board of Directors
In accordance with article 15 of the company´s articles of association, the Board of Directors must be made
up of a minimum of three members who are appointed by the General Meeting of Shareholders. They serve
a six-year term of office.
The composition of the Board of Directors
The Tessenderlo Group Board of Directors is composed as follows (situation at the end of December 2003):
– Chairman, executive director: Gérard Marchand (appointment ends June 2004)
– Non-executive directors, representatives of the main shareholder:
• Pierre-Louis Boutonnat (appointment ends June 2007);
• Pierre-François Couture (appointment ends June 2006);
• Claude Niedergang (appointment ends June 2007).
– Independent non-executive directors
• Valère Croes (appointment ends June 2009);
• Paul de Meester (appointment ends June 2007);
• Thierry Piessevaux (appointment ends June 2007);
• Karel Pinxten (appointment ends June 2007);
• Bernard Pache (appointment ends June 2007);
• Marc Lambrechts († August 2003).
The Board of Directors is supported by the Secretary General, Adrien Carton de Wiart.
The position of statutory auditor is fulfilled by Klynveld Peat Marwick Goerdeler (KPMG), represented by Ludo
Ruysen. Besides the compensation of his mandate, the statutory auditor received for special assignments an
amount on the order of 60,359 EUR within SA Tessenderlo Chemie.
73

74
The rules governing the composition and activities of the Board of
Directors
The Board of Directors is authorised to take all actions, which are necessary or useful
for the realisation of the company´s objectives, with the exception of matters that exclusively
require decisions to be taken by the General Meeting, as stipulated either by
the law or by the company´s articles of association. The company is validly represented
by the chairman of the Board of Directors or by two directors acting jointly.
The Board of Directors is currently composed of nine members. In accordance with
the terms of the law of August 2 nd , 2002 and confirmed by the General Meeting of
June 3 rd , 2003, independent directors sit on the Board as well as representatives of
the main shareholder, the French group Entreprise Minière et Chimique (EMC, mining
and chemicals group).
The Board may only validly deliberate or take decisions when a quorum of at least
one-half of the directors are present or represented. The Board passes its resolutions
by a simple majority vote of the members present or represented. In the event of a tie
vote, the vote of the Chairman is deciding.
The Board of Directors met five times during the financial year 2003.
In addition to the presence of independent directors on the Board of Directors, a
number of committees also ensure the proper functioning and autonomy of the
Board. These committees are composed exclusively of non-executive directors.
Since 1999, the Board of Directors has been working with three specialised committees:
– the Audit Committee;
– the Nomination Committee;
– the Remuneration Committee.

The Audit Committee
The Audit Committee is made up of four members, three of whom are independent directors. It is supported
by the secretary to the Board of Directors.
The members of the committee are:
– Valère Croes (chairman);
– Claude Niedergang;
– Thierry Piessevaux;
– Marc Lambrechts.
The task of the Audit Committee is to assist the Board of Directors in exercising supervision over the following
matters:
– financial information which is released to the shareholders and the staff and, more generally, any financial
information which is made public;
– the internal audit and the internal control system, as well as the existing or new control procedures;
– the external audit.
In the course of its work, the Audit Committee consults the appropriate company executives, i.e. the financial
director, the corporate controller of the group, the internal auditor and the statutory auditor.
The committee meets at least twice a year in order to examine the half-yearly and annual accounts, as well as
whenever circumstances so require.
In 2003 the Audit Committee met three times.
The Nomination Committee
The Nomination Committee was formed to advise the Board of Directors on proposed appointments to be
submitted for approval to the General Meeting, as well as proposals concerning the replacement of directors
through co-option.
The committee is made up of three members:
– Pierre-François Couture;
– Paul de Meester;
– Marc Lambrechts.
The Nomination Committee meets whenever circumstances so require.
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76
The Remuneration Committee
The Remuneration Committee is responsible for making proposals concerning the
remuneration for the executive and non-executive directors, and for providing recommendations
on the group´s remuneration policy towards its principal managers. The
committee is made up of three non-executive directors:
– Valère Croes;
– Paul de Meester;
– Karel Pinxten.
The Remuneration Committee met once during the 2003 financial year.
The Management Committee (*)
The Board of Directors has entrusted the day-to-day management of
the company to one of its members, Gérard Marchand, who is also
the chairman of the Management Committee.
In addition to the chairman, the Management Committee has four
members:
– Matteusz Dubinski, Inorganic Chemicals division;
– Jozef Housen, Natural Organic Products division;
– Philippe Pôlet, PVC and Plastics Converting divisions;
– David Poynton, Fine Chemicals division. (**)
The monthly meetings of the Management Committee are also attended by:
– Adrien Carton de Wiart, Secretary General;
– Eddy Vandenbriele, director IT, Organisation Development and Human Relations;
– Christian Vrebosch, director Finance.
Like the group´s most important executives, the members of the Management Committee
receive a fixed remuneration. In addition, they receive a variable bonus based
on their individual performance and the results of the group.
(*) Also see the photo on page 6
(**) Pierre Ducuroir till March 31st ,2003

The dividend policy
The dividend policy remains unchanged. In other words: one-third of the net consolidated profit average is
paid out as dividend, with the balance devoted to financing the expansion of the group. However, this policy
can be adjusted in order to ensure that the dividend grows or at least remains stable.
The allocation proposed to the General Meeting for the financial year 2003 represents 71% of the consolidated
profit. This corresponds to a net dividend per share of 0.85 EUR (as in 2002). By way of comparison:
the dividends, which were distributed for the financial year 2002 amounted to 44% of the net consolidated
profit.
77

WYMAR
INTL
(BE)
DYNAPLAST
EXTRUCO
(CA) 33%
PROFEX
(FR)
LEGEND
IMMO
WATRO
(BE)
HOLDING
INORGANIC CHEMICALS
NATURAL ORGANIC
PRODUCTS
TESSENDERLO CHEMIE NV
TESSENDERLO
PARTICIP
(BR)
MEDABIL
(BR) 50%
LVM
HOLD
(NL)
PB LEINER
ARGENTINA
(AR)
TC
ROTTERDAM
(NL)
DYKA BV
(NL)
DYKA UK
(GB)
LVM
LIMBURG
(NL)
PBG UK
(GB)
TESSENDERLO
FINE
CHEMICALS
(GB)
FINE CHEMICALS
PVC & COMPOUNDS
PLASTICS CONVERTING
TESSENDERLO
HOLDING UK
(GB)
FAIRBROOK
(GB)
TESSENDERLO
UK
(GB)

S.A.V.
(FR)
PC LOOS
(FR)
PLASTIVAL
(FR)
SOTRA-
SEPEREF
(FR)
THERMO-
PLASTIQUES
COUSIN-
TESSIER
(FR)
TECHNI-
COMPOUND
(FR)
TEFIPAR
(FR)
SAPLAST
(FR)
CALAIRE
CHIMIE
(FR)
CHEMILYL
(FR)
CAILLAUD
(FR)
PBG FRANCE
(FR)
ALIPHOS
(FR)
TESSENDERLO
PARTICIP
(IT)
TESSENDERLO
ITALIA
(IT)
TESSENDERLO GROUP
TESSENDERLO
USA
(US)
PB LEINER
USA
(US)
CHELSEA B.P.
(US)
TESSENDERLO
KERLEY
(US)
JUPITER
SULPHUR
(US) 50%
TESSENDERLO
DAVISON
CHEMICALS
(US) 50%
ALKEMIN
(US) 49%
LVM
(BE)
TCI
(BE)
CHEMIELIM
(NL)
TAILE
(CN)
FARCHEMIA
(IT)
PBG GmbH
(DE)
TCT POLSKA
(PL)
DYKA
PLASTICS
(BE)
DYKA
POLSKA
(PL)
ZEOLINE
(BE) 50%
TERELUX
(LU)

Taile Chemical Factory
Lianyungang
CHINA
The plant in Lianyungang is the most important
Chinese producer of benzyl chloride and benzaldehyde,
primarily used in the pharmaceutical
industry. The Fine Chemicals division holds 30 percent
of the world market of a key intermediate
for the production of penicillin.
5

82
CONSOLIDATED BALANCE SHEET
2003 2002
ASSETS
(in thousand EUR)
FIXED ASSETS 785,398 760,019
I. Formation expenses (1) 10,213 13,547
II. Intangible assets (2) 63,012 68,771
III. Consolidation differences (3) 45,011 21,542
IV. Tangible assets (4) 647,903 635,737
A. Land and buildings 194,488 185,236
B. Plant, machinery and equipment 388,997 392,518
C. Furniture and vehicles 11,033 10,222
D. Leased and other similar rights 302 377
E. Other tangible assets 20,260 20,325
F. Assets under construction 30,706 25,291
G. Advanced payments 2,117 1,768
V. Financial assets (5) 19,259 20,422
A. Enterprises accounted for using the
equity method
1. Participating interests 13,451 10,897
B. Other enterprises
1. Participating interest and shares 3,500 7,233
2. Amount Receivable 2,308 2,292
CURRENT ASSETS 803,294 842,254
VI. Amount receivable after one year 36,678 32,864
A. Trade debtors 25 148
B. Other amounts receivable 1,400 1,007
C. Differed taxes (6) 35,253 31,709
VII. Stock and contracts in progress (7) 297,939 306,061
A. Stock
1. Raw materials and consumable 84,683 85,094
2. Work in progress 16,769 15,538
3. Finished goods 176,399 191,233
4. Goods purchased for resale 20,088 14,196
VIII. Amounts receivable within one year(8) 417,091 447,108
A. Trade debtors 361,288 393,156
B. Other amounts receivable 55,803 53,952
IX. Short term cash investments 1,044 2,279
B. Other investments and deposits (11) 1,044 2,279
X. Cash at bank and in hand (11) 46,858 45,946
XI. Deferred charges and accrued income 3,684 7,996
Total assets 1,588,692 1,602,273
( ) See comments on pages 87 and followings

CONSOLIDATED BALANCE SHEET
2003 2002
LIABILITIES
(in thousand EUR)
CAPITAL AND RESERVES (9) 756,342 757,940
I. Capital 133,000 132,000
A. Issued capital 133,000 132,000
II. Share premiums 32,602 30,753
IV. Consolidated reserves 598,869 586,645
V. Consolidation differences 1,353 359
VI. Conversion differences -10,384 7,053
VII. Investment grants 902 1,130
VIII. MINORITY INTEREST 402 14,326
PROVISIONS AND
DEFERRED TAXES 114,779 120,595
IX. Provisions and deferred taxes (10)
A. Provisions for liabilities and charges 68,651 92,113
1. Pensions and similar obligations 40,630 32,743
2. Taxation 2,718 1,308
3. Major repairs and maintenance – 5,586
4. Other liabilities and charges 25,303 52,476
B. Deferred taxes 46,128 28,482
CREDITORS 717,169 709,412
X. Amounts payable after one year (11) 116,196 163,252
A. Financial debts
2. Unsubordinated debentures 40,098 40,080
3. Leasing and similar obligations 751 -
4. Credit institutions 13,195 48,969
5. Other loans 62,152 74,203
XI. Amounts payable within one year 590,413 531,474
A. Current portion of amounts (11)
payable after one year 1,017 2,120
B. Financial debts (11)
1. Credit institutions 196,296 128,207
2. Other loans 73,697 57,924
C. Trade debts (12)
1. Suppliers 192,648 200,983
2. Bills of exchange payable 912 2,562
D. Advances received on contracts in progress 1,507 5,606
E. Tax and social liabilities (12)
1. Taxes payable 27,211 32,002
2. Remuneration (wages and benefits) 50,073 47,774
F. Other amounts payable (12) 47,052 54,296
XII. Accrued charges and deferred income 10,560 14,686
Total liabilities 1,588,692 1,602,273
( ) See comments on pages 87 and followings
83

84
CONSOLIDATED INCOME STATEMENT
2003 2002
(in thousand EUR)
I. Operating income 1,985,382 1,961,518
A. Turnover (13) 1,972,197 1,933,878
B. Increase +/decrease - Change in stocks
of finished goods work and contracts
in progress -13,590 -7,924
C. Fixed assets – own construction 3,242 3,765
D. Other operating income 23,533 31,799
II. Operating charges 1,903,198 1,846,647
A. Raw materials, consumable and goods for resale
1. Purchases 919,127 865,371
2. Increase -/decrease + in stock 9,376 -3,686
B. Services and other goods 443,078 452,889
C. Remuneration, social security costs and pensions 369,961 363,279
D. Depreciation of and other amounts written-off
formation expenses, tangible and
intangible fixed assets 134,628 135,973
E. Increase +/decrease - in amounts written-off
stocks, contracts in progress and
trade debtors 108 3,250
F. Increase +/decrease - in provisions for liabilities
and charges -12,907 7,730
G. Other operating charges 39,827 38,532
H. Capitalized other operating costs - -16,691
III. Operating profit (14) 82,184 114,871
IV. Financial income 8,638 7,162
A. Income from financial fixed assets 2,294 829
B. Income from current assets 1,892 2,517
C. Other financial income 4,452 3,816
V. Financial charges 22,858 23,022
A. Interest and other debt charges 15,625 14,902
C. Increase +/decrease - in amount written off current assets - 17
D. Other financial charges 7,233 8,103
Net financial loss (15) -14,220 -15,860
VI. Ordinary profit before taxes 67,964 99,011
( ) See comments on pages 87 and followings

CONSOLIDATED INCOME STATEMENT
2003 2002
(in thousand EUR)
VII. Extraordinary income (16) 18,908 4,994
A. Write-back of depreciation and of
amounts written-off intangible and
tangible fixed assets 12,107 -
D. Adjustments to provisions for extraordinary
liabilities and charges 58 297
E. Gains on disposal of fixed assets 484 291
F. Other extraordinary income 6,259 4,406
VIII. Extraordinary charges (16) 10,205 6,359
A. Extraordinary depreciation of and
amounts written-off formation expenses,
tangible and intangible fixed assets 3,264 22
C. Amounts written-off financial fixed assets 1,994 -
D. Provisions for extraordinary liabilities and charges 33 779
E. Loss on disposal of fixed assets - 79
F. Other extraordinary charges 4,914 5,479
Extraordinary result 8,703 -1,365
IX. Profit for the financial period before taxation 76,667 97,646
X. Deferred taxes (17) -8,846 7,117
A. Transfer from deferred taxes and
latent taxation liabilities 4,346 8,979
B. Transfer to deferred taxes and latent
taxation liabilities -13,192 -1,862
XI. Income taxes (17) -29,354 -34,991
A. Income taxes -31,059 -40,577
B. Adjustment of income taxes and write-back
of tax provisions 1,705 5,586
XII. Profit for the financial period 38,467 69,772
XIII. Share in the result of the enterprises accounted
for using the equity method 4,975 5,396
XIV. Consolidated profit 43,442 75,168
A. Share of third parties -16 4,530
B. Share of the group (18) 43,458 70,638
( ) See comments on pages 87 and followings
85

86
Operating activities
CONSOLIDATED CASHFLOW STATEMENT
2003 2002
Share of the group in the profit 43,458 70,638
Share of third parties in the profit -16 4,530
Share in the result of enterprises accounted for
using the equity method -4,975 -5,396
Depreciation (tangible & intangible assets) 134,628 135,973
Amounts written-off financial fixed assets and
other receivables in more than 1 year 1,994 -
Provisions for risks and charges -22,260 8,023
Differed taxes 8,846 -7,117
Cash flow 161,675 206,651
Change in working capital 14,507 9,193
Change of perimeter and conversion difference 26,792 15,068
Change in net cash flow from operating activities 202,974 230,912
Investment activities
Increase of intangible & tangible assets -121,872 -132,133
Increase of financial assets -91,400 -33,818
Total acquisition -213,272 -165,951
Decrease of intangible & tangible assets 3,803 1,138
Decrease of financial assets 182 1
Total disposals 3,985 1,139
Change in net cash flow from investments/divestments -209,287 -164,812
Financial transactions
(in thousand EUR)
Increase of share capital 2,848 2,616
Decrease of capital grants -228 -83
Increase (+), decrease (-) of loans -47,056 87,207
Increase of long-term receivables -2,027 -689
Reimbursement of long-term receivables 929 1,896
Dividends paid -31,234 -31,104
Dividends paid to third parties -1 -1,158
Change in net cash flow from financing activities -76,769 58,685
Changes in cash and cash equivalents -83,082 124,785

Notes to the consolidated accounts
BALANCE SHEET (in millions of EUR)
(1) Formation expenses
The formation expenses include restructuring costs and the costs of increase of capital. The restructuring
costs are depreciated over a period of 5 years and amount to EUR 10.0 million at the end of 2003.
(2) Intangible fixed assets
Intangible fixed assets include the costs for research and development, the value of patents and licences and
goodwill.
This item dropped by EUR 5.7 million compared to last year. This variation is due to the following elements:
– new investments 3.1
– changes in the perimeter of consolidation 5.4
– depreciation of the year – 8.6
– conversion difference – 5.6
– 5.7
(3) Consolidation differences
This item records positive consolidation differences, i.e. the price paid in excess of the value, eventually reestimated,
of the shareholders’ equity of the consolidated companies. Consolidation differences are amortized
over a 10 to 20 year period.
The amount has changed as follows:
Net value end of 2002 21.5
Acquisition of new operations 28.6
Depreciation of the year – 5.1
Net value end of 2003 45.0
Acquisitions mainly relate to plastics converting and natural organic products.
(4) Tangible fixed assets
The net values of tangible fixed assets include acquisition costs for group investments; accumulated depreciation
is deducted.
The increase of this item is due to new investments for EUR 118.6 million and to the extension of the perimeter
of consolidation for EUR 28.5 million partially offset by the depreciation of the year (EUR 108.1 million)
and by a negative conversion difference (EUR 25.9 million).
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88
These investments are distributed between the divisions as follows:
– Inorganic chemicals 18
– Fine chemicals 21
– PVC & compounds 19
– Plastics converting 36
– Natural organic products 25
119
(5) Financial fixed assets
This item includes both equity method and non-consolidated acquisitions.
The increase of the equity method acquisitions is due to the improvement of the consolidated result of companies
integrated using the equity method.
Non-consolidated companies are valued at their historical price, under the deduction of value reduction. The
significant decrease of the non-consolidated companies is due to the consolidation of the sales offices.
(6) Deferred tax assets
The sum for deferred taxes essentially arises from the booking of fiscal advantages for tax losses. A value
reduction is applied on the deferred tax assets for the part of the tax losses which cannot be recovered within
a period of 5 years. During the financial year, a value reduction of EUR 7.2 million has been recorded (See
point C. VI of the valuation rules).
(7) Stock value
In spite of the extended perimeter of consolidation and of the turnover increase, stocks are registering a
decrease of EUR 8.2 million.
(8) Accounts receivable
The commercial accounts receivable dropped by EUR 31.9 million as compared to 2002. The average credit
allowed for client improved by 7 days to reach 66 days in 2003. The other accounts receivable increased by
EUR 1.9 million and comprise VAT, other taxes to be recuperated and the value of the overfunding of the
pension fund.

(9) Shareholders’ equity – part of the group
The variance of shareholders’ equity can be split up as follows:
On 31/12/2002 757.9
Capital increase for personnel 2.8
Result of the year – part of the group 43.5
Dividend distribution – 31.2
Conversion differences – 17.4 *
Consolidation difference 1.0
Capital subsidies – 0.3
On 31/12/2003 756.3
* The conversion difference arises essentially from USD and GBP.
(10) Provisions and deferred taxes
Provisions have been reviewed in the spirit of the new IAS-IFRS standards and led to the reversal of some of
these.
This item decreased by EUR 5.8 million due to:
– an increase in pension provision by EUR 7.9 million: all the complementary pension commitments within
the framework of IAS no. 19 were updated within the entire group. The necessary contributions were paid
or provided for during 2003;
– a reduction of the provision for major repairs and maintenance by EUR 5.6 million;
– a decrease in the provision for other liabilities and charges by EUR 27.2 million; the restructuring provision
of EUR 16.7 million accounted for last year have been reclassified in the item ‘provisions for pensions and
similar obligations’. Provisions for environmental costs have been reversed insofar as they do not fulfil a
legal obligation.
– an increase of EUR 17.6 million in the provision for deferred taxes and fiscal latencies
(11) Net indebtedness
The group’s net indebtedness amounts to EUR 339.3 million at the end of 2003 as compared to EUR 303.3
million last year. The variation results from the compensation between the financial liabilities amounting to
EUR 387.2 million and the cash investments amounting to EUR 47.9 million. This increase is due to investments
made during the year and the acquisition of new companies. The strengthening of the euro against
the dollar reduces the part of the group debt denominated in USD.
All debts mature within maximum 5 years and break down as follows: 30% denominated in USD, 30% in
GBP and 40% in EUR, which is essentially in treasury bills. The short-term debt has a floating interest rate.
Our private placements (i.e. EUR 40 million and USD 60 million) have a fixed rate and mature in December
2007.
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90
(12) Accounts payable
The accounts payable decreased by EUR 14.0 million. Tax and social liabilities also dropped. Dividend to pay
(EUR 31.2 million) is also included in this item.
RESULTS
(13) Turnover
The group’s turnover increased by almost 2%, from EUR 1,933.9 million to EUR 1,972.2 million. Considering
an unchanged perimeter of consolidation, the turnover would have decreased by almost 1%.
The turnover per division:
2003 2002
Inorganic chemicals 534 611
Fine chemicals 261 264
PVC & Compounds 341 298
Plastics converting 523 500
Natural organic products 313 261
1,972 1,934
(14) Operating profit, ebitda and cash flow
The operating profit has been influenced by the reversal of the provisions for major repairs and maintenance
and for the environmental costs for respectively EUR 6.2 million et EUR 8.2 million, as mentioned above. The
dotation to the pension provision and similar obligations complies with the IAS19 standard and impacts the
operating result by EUR 8.2 million.
The operating result has decreased by 28.5%, from EUR 114.9 million in 2002 to EUR 82.2 million in 2003.
Cash flow also dropped from EUR 206.7 million to EUR 161.7 million.
EBITDA per division:
2003 2002
Inorganic chemicals 39 71
Fine chemicals 22 34
PVC & Compounds – 2 15
Plastics converting 88 86
Natural organic products 57 53
204 259
(15) Financial results
This item comprises the income from non-consolidated investments and financial assets. Debt charges decreased
by EUR 1.6 million, from EUR 15.9 million in 2002 to EUR 14.2 million in 2003; although financial
debts slightly increased, interest rates are lower than last year.

(16) Net Profit and Loss results on extraordinary activities
The net extraordinary result is positive by EUR 8.7 million and is composed of
– the impact of the restatement of accelerated amortisation, which amounts to EUR 12.1 million;
– the extraordinary amortisation recorded for EUR 3.3 million. Extraordinary depreciations were accounted
for on assets for which performance is considered as structurally inappropriate.
(17) Taxes
A value reduction of EUR 7.2 million has been recorded on the deferred tax assets in accordance with our
internal valuation rule (see point C. VI valuation rules).
The actual tax rate before tax restatement moved from 36% to 38%.
(18) Consolidated group result
The consolidated result decreased by 38% as compared to last year, from EUR 70.6 million to EUR 43.5 million.
91

92
ANNEX
I. CRITERIA OF CONSOLIDATION
1. Definition of the perimeter of consolidation
The principles for the consolidation are as follows:
companies are consolidated if they comply with each of the following criteria:
– the company’s value is significant
– the company’s activities are similar to those of the group.
Therefore, companies are excluded from consolidation if they do not meet both the above criteria:
– the company’s value is insignificant
– the company’s activities are so different from those of the group that its consolidation would be incompatible
with the obligation of the company to give a true and fair view.
No quantitative criteria (such as net sales, total assets, or staff size) were considered in the consolidation
process.
Consequently, companies whose activities are particularly different from the group’s chemical activities could
be excluded on the basis that their value is insignificant or their similarity to the rest of the group is not evident.
The companies consolidated were either industrial companies or companies supporting the industrial activities
(e.g. by conveyance, by parent company investments in shares of industrial companies, or by their specific
contributions rendered to the Tessenderlo Group).
2. Changes of the perimeter
These are the following changes:
– Two mergers within the Caillaud group during 2003:
• Fondoir Romanais SAS with Union de la Boucherie Lyonnaise SAS
• Progilor SAS and Bouvart SAS
– Acquisition of PB Leiner USA Corp. and PB Leiner Argentina SA, included in the perimeter of consolidation
from 4 April 2003 using the full consolidation method.

– Increase of the percentage of participation in various group companies:
• The Fairbrook group: from 75% to 100%
• Medabil: from 28.57% to 50%
• Dynaplast-Extruco: from 25% to 33%
• Lianyungang Taile: from 65% to 100%
– Inclusion of the sales offices, except those working on commission basis, in the perimeter of consolidation.
3. Consolidation method
– Full consolidation: companies controlled directly or indirectly by voting right or in practice;
– Proportional consolidation: joint venture companies;
– Equity method: companies in which the group exercises significant influence.
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94
II. SUBSIDIARIES CONSOLIDATED
A. Subsidiaries fully consolidated
No. vat Group Interest
– Aliphos SAS,
FR-75013 Paris (France)
– Baert-Verlee & Zoon BVBA,
FR61338.966.872 100,0%
BE-1050 Brussels (Belgium)
– Baert-Verlee NV,
BE419.875.683 100,0%
BE-1050 Brussels (Belgium)
– Britphos Ltd,
BE435.921.463 100,0%
GB-Yeadon, Leeds LS19 7BY (Great Britain)
– Ets. Caillaud SAS,
GB343.187.654 100,0%
FR-61400 Saint-Langis-les-Mortagne (France)
– Calaire Chimie SAS,
FR73536.550.056 100,0%
FR-62100 Calais (France)
– Ets. Charvet Père et Fils SAS,
FR58309.084.663 100,0%
FR-91490 Milly-La-Forêt (France)
– Chelsea Building Products Inc.,
US-Oakmont, Pennsylvania 15139
FR35316.826.775 99,9%
(United States)
– Chemielim NV,
– 100,0%
BE-1050 Brussels (Belgium)
– Chemilyl SAS,
BE414.699.348 100,0%
FR-59120 Loos (France)
– Cofipar NV,
FR58380.358.226 100,0%
NL-4854 MT Bavel (The Netherlands)
– Compagnie Financière de Tessenderlo NV,
– 100,0%
BE-1050 Brussels (Belgium)
– Dyka BV,
BE407.247.372 100,0%
NL-8331 LJ Steenwijk (The Netherlands)
– Dyka GmbH,
NL00.68.44.200.B.01 100,0%
DE-14513 Teltow (Germany) DE159.812.055 100,0%
– Dyka Plastics NV,
BE-3900 Overpelt (Belgium) BE414.467.340 100,0%

– Dyka Polska Sp.zo.o.,
PL-55-221 Jelcz-Laskowice (Poland)
– Dyka s.r.o.,
NIP 899-22-72-101 100,0%
CZ-27351 Unhost (Czech. Rep.)
– Dyka U.K. Ltd,
GB-Longtown-Carlisle-Cumbria CA6 5LY
030/45792950 100,0%
(Great Britain)
– Eurocell Building Plastics Ltd,
GB-Alfreton-Derbyshire DE55 4RF
GB373.837.324 100,0%
(Great Britain)
– Eurocell Profiles Ltd,
GB-Alfreton-Derbyshire DE55 4RF
GB616.751.731 100,0%
(Groot-Brittannië)
– Fairbrook plc,
GB-Alfreton–Derbyshire DE55 4RF
GB616.751.731 100,0%
(Great Britain)
– Farchemia srl,
GB616.751.731 100,0%
IT-24047 Treviglio (BG) (Italy)
– France Gras SA,
IT01903340162 100,0%
FR-56300 Le Sourn (France)
– H.L. Plastics Ltd,
GB-Alfreton-Derbyshire DE55 4RF
FR71860.500.438 97,0%
(Great Britain)
– Immo Watro NV,
GB616.751.731 100,0%
BE-1050 Brussels (Belgium)
– John Davidson Holding Ltd,
BE463.391.467 100,0%
GB-EH2 4NE Edinburgh (Great Britain)
– John Davidson Pipes Ltd,
– 100,0%
GB-EH2 4NE Edinburgh (Great Britain)
– Kerley Trading Inc.,
US-Phoenix – Arizona 85008-3279
GB265.136.463 100,0%
(United States)
– Lianyungang Taile Chemical Factory Ind. Co.Ltd.,
Lianyungang City – 222023
– 100,0%
CN-Jiangsu Province (China) – 100,0%
– Limburgse Rubber Produkten NV,
BE-3620 Rekem-Lanaken (Belgium) BE415.296.392 100,0%
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96
– Limburgse Vinyl Maatschappij NV,
BE-1050 Brussels (Belgium)
– LVM Holding BV,
BE415.505.042 100,0%
NL-4854 MT Bavel (The Netherlands)
– LVM Italia srl,
– 100,0%
IT-20159 Milano (Italy)
– LVM Kunststoffe GmbH. & Co. KG,
IT050.835.401.52 100,0%
DE-40878 Ratingen (Germany)
– LVM Limburg BV,
DE121.647.162 100,0%
NL-6167 RZ Geleen (The Netherlands)
– LVM Nederland BV,
NL95.50.975.B.01 100,0%
NL-4854 MT Bavel (The Netherlands)
– LVM United Kingdom Ltd,
GB-St. Albans, Hertfordshire AL1 1HD
NL428.164.18478 100,0%
(Great Britain)
– MPR Europe BV,
GB378.292.021 100,0%
NL-1075 AD Amsterdam (The Netherlands)
– MPR Services Inc.,
US- Phoenix – Arizona 85008-3279
– 100,0%
(United States)
– PB Gelatins France SAS,
– 100,0%
FR-67117 Furdenheim (France)
– PB Gelatins GmbH,
FR17465.501.385 100,0%
DE-31582 Nienburg/Weser (Germany)
– PB Gelatins UK Ltd,
Treforest-Mid Glamorgan
DE116.150.784 100,0%
GB-CF 375 SQ (Great Britain)
– PB Leiner Argentina SA
CC108-S3016WAC – Santo Tomé
GB484.264.428 100,0%
AR-Santa Fe (Argentina)
– PB Leiner USA Corp.
US-Davenport, Iowa 52809
– 100,0%
(United States)
– Plastival SAS,
– 100,0%
FR-25340 Clerval (France) FR44622.820.553 100,0%
– Ets. Point SAS,
FR-01440 Viriat (France) FR20758.200.729 100,0%

– Produits Chimiques de Loos SAS,
FR-59120 Loos (France)
– Profex SAS,
FR81327.744.108 100,0%
FR-62210 Avion (France)
– Progilor-Bouvart SAS,
FR64328.898.564 100,0%
FR-55100 Charny sur Meuse (France)
– Saplast SAS,
FR22846.880.102 99,9%
FR-67100 Strasbourg (France)
– Société Artésienne de Vinyle SAS,
FR56608.501.417 100,0%
FR-75013 Paris (France)
– Société Rhodanienne de Produits Alimentaires SAS,
FR82351.563.978 100,0%
FR-69960 Corbas (France)
– Sotra-Seperef SAS,
FR14779818244 100,0%
F-69650 Quincieux (France)
– T.C.T. Polska Sp.zo.o.,
FR05383.115.110 100,0%
PL-96-500 Sochaczew (Poland)
– Tarpey – Harris Ltd,
GB-Alfreton Derbyshire DE 55 4RF
NIP016.303.68 100,0%
(Great Britain)
– Technicompound SAS,
GB616.751.731 100,0%
FR-49700 Doué-la-Fontaine (France)
– Tefipar SA,
FR57.343.991.600 100,0%
FR-75013 Paris (France)
– Térélux SA,
– 100,0%
LU-GD 2633 Luxembourg (Luxembourg)
– Tessenderlo Chemie NV,
– 100,0%
BE-3980 Tessenderlo (Belgium)
– Tessenderlo Chemie Hungaria Kft,
BE412.101.728 Parent Company
HU-1141 Budapest (Hungary)
– Tessenderlo Chemie International NV,
HU10618725.2.01 100,0%
BE-1050 Brussels (Belgium)
– Tessenderlo Chemie Rotterdam BV,
BE432.184.686 100,0%
NL-3133 KA Vlaardingen (The Netherlands)
– Tessenderlo Chemie Schweiz AG,
NL66.97.550B.01 100,0%
CH-5330 Zurzach (Switzerland)
– Tessenderlo Fine Chemicals Ltd,
GB-ST13 8UZ Leek, Staffordshire
CH504752 100,0%
(Great Britain) GB765.365.404 100,0%
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98
– Tessenderlo Holding UK Ltd,
GB-CF 375 SU Treforest (Great Britain)
– Tessenderlo Italia srl,
GB484.264.428 100,0%
IT-20159 Milano (Italy)
– Tessenderlo Kerley Inc.,
US-Phoenix-Arizona 85008-3279
IT09921480159 100,0%
(United States)
– Tessenderlo Kerley Latino Americana SA,
– 100,0%
CL-9358 Santiago Chile (Chile)
– Tessenderlo Kerley Mexico SA de CV,
– 100,0%
MX-85000 Ciudad Obregon,Sonora (Mexico)
– Tessenderlo Kerley Peru SAC,
– 100,0%
PE-Arequipa-Peru (Peru)
– Tessenderlo Kerley Services Inc.,
US-New Mexico-88 220 Carlsbad
– 96,7%
(United States)
– Tessenderlo Kerley Yildiz,
TR-80300 Gayrettepe Istanbul – Turkey
– 100,0%
(Turkey)
– Tessenderlo Partecipazioni SpA,
– 100,0%
IT-20122 Milano (Italy)
– Tessenderlo Participações Brasil Ltda,
IT12118590152 100,0%
BR-São Paulo, Brazil (Brazil)
– Tessenderlo Polska Sp.zo.o.,
– 100,0%
PL-60-462 Poznan (Poland)
– Tessenderlo Services SAS,
NIP788.17.88.462 100,0%
FR-75013 Paris (France)
– Tessenderlo U.S.A. Inc.,
US-Phoenix-Arizona 85008-3279
FR14444.424.642 100,0%
(United States)
– Tessenderlo UK Ltd,
– 100,0%
GB-Widnes, Cheshire, WA8 ONY (Great Britain)
– Thermoplastiques Cousin-Tessier SAS,
GB775.893.071 100,0%
FR-85130 Tiffauges (France)
– Union de la Boucherie Lyonnaise SAS,
FR95063.200.604 100,0%
FR-69960 Corbas (France) FR27957.503.204 94,2%
– Wymar International NV,
BE-8720 Oeselgem (Belgium) BE437.458.023 100,0%

– Wymar Polska Sp.zo.o.,
PL-62-100 Wagrowiec Poland (Poland)
– Wymar Systems Ltd,
PL766.16.24.439 100,0%
GB-DY13 9EZ Worcestershire (Great Britain) – 100,0%
B. Subsidiaries proportional consolidated
– Alkemin S de RL de CV,
MX-Mexico D.F. 11700 (Mexico)
– Jupiter Sulphur LLC,
US-Phoenix-Arizona 85008-3279
– 49,0%
(United States)
– Tessenderlo Davison Chemicals LLC,
US-Rustson, LA 71270
– 50,0%
(United States) – 50,0%
C. Subsidiaries consolidated with equity method
– Dynaplast-Extruco Inc.,
CA-G7X OB6 Jonquière – Québec (Canada)
– Medabil Tessenderlo SA,
– 33,0%
BR-CEP 90200-290 Porto Alegre RS (Brazil)
– Scanphos A/S,
– 50,0%
DK-3460 Birkerod (Denmark)
– Siram sarl,
DK76143218 50,0%
FR-50390 St Sauveur le Vicomte (France) FR10322.883.091 50,0%
– Zéoline SA,
BE-4480 Engis (Belgium) BE441.266.658 50,0%
99

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VI. VALUATION RULES
A. 1. FORMATION EXPENSES
The formation expenses include the restructuring costs and the costs of increase of capital. They are depreciated
on a straight line basis over a period of 5 years.
2. TANGIBLE FIXED ASSETS
Tangible fixed assets are valued at acquisition price.
Depreciation is carried out on the basis of the straight-line method; the rates are the following:
– land 0.00%
– industrial/residential buildings, constructions & appreciation 3.00%
– rented buildings – financing appreciation on furniture, fittings and plant 5.00%
– furniture, fittings, plant, renovation work to buildings 10.00%
– pilot plant 20.00%
– vehicles 25.00%
– environmental investments 33.33%
– computer hardware 33.33%
B. CONSOLIDATION DIFFERENCES
Goodwill resulting from subsidiaries acquired during the financial year is reported under the asset heading
‘Consolidation differences’.
Goodwill was reported and represents the difference between the purchase price of an investment in a consolidated
subsidiary or its portfolio value, and the Group’s share in the company’s net equity at the date of its
inclusion in the consolidation.
When the difference cannot be allocated to the assets of the subsidiary, the difference is reported under the
heading ‘Consolidation differences’ in the consolidated balance sheet.
This goodwill arising on consolidation is subject to amortisation. The amortisation period is determined based
on a prudent appraisal of the economic life of the intangible asset, based on the specific economic advantages
of each acquisition, and the estimated recovery period of the excess consideration paid.
Presently, the goodwill is amortised over a 10 to 20 year period.
Consolidated companies’ accounts were all closed off as of 31 December 2003.

Foreign subsidiaries’ balance sheet is translated to EURO using the closing exchange rate and the profit and
loss accounts with the average exchange rate for the year.
2003 2002
Closing Average Closing
GBP/EUR 0,7048 0,6920 0,6505
USD/EUR 1,2630 1,1312 1,0487
CAD/EUR 1,6234 1,5817 1,6550
RMB/EUR 10,4536 9,3627 8,6801
PLN/EUR 4,7019 4,3996 4,0210
BRL/EUR 3,6520 3,0740 3,7066
CHF/EUR 1,5579 1,5212 1,4520
CZK/EUR 32,4100 31,8459 /
DKK/EUR 7,4450 7,4307 /
HUF/EUR 262,5000 253,6200 236,2899
Change difference coming from the translation of the Equity of a foreign company is booked into the conversion
difference and influenced directly the Shareholders’ Equity.
Foreign subsidiaries’ financial statements are restated to conform to the Belgian Accounting Rules.
Intercompany accounts were eliminated in accordance with normal practices.
C. MODIFICATION OF VALUATION RULES
1. Value reduction on deferred tax assets arising from tax losses
Deferred tax assets have been accounted for in the balance sheet arising from tax losses insofar as these can
be recovered. For consolidation purposes, the recovery period has been limited to 5 years. The computation
of tax losses takes into account the local regulations concerning their deductibility from future taxable profits.
When tax losses are higher than the usable future taxable profits limited to 5 years, a value reduction is accounted
for the difference. A value reduction of EUR 7.2 million has been recorded during the 2003 financial
year.
2. Valuation of tangible and intangible fixed assets
In anticipation of IAS-IFRS standards, production units with negative performances have been subject to an
impairment test in accordance with IAS no. 36 (depreciation of assets). The impact of this test amounts to
EUR 3.3 million; it has been included in the item ‘extraordinary amortisation and value reduction’.
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102
3. Provision for environmental costs
Following application of the IAS no. 37 standard (provisions, liabilities and contingent assets), provisions for
environmental costs were reversed as these do not comply with the IAS/IFRS standard. The reversal of the
provision amounts to EUR 8.6 million.
4. Provision for major repairs and maintenance
All the provisions were reversed as they do not comply with the IAS no. 37 standard. The reversal amounts to
EUR 5.6 million.
5. Provisions for pensions and similar obligations
IAS no. 19 (employee benefits) was implemented within the entire group. The impact on the result of the
year 2003 amounts to EUR 8.2 million.
6. Restatement of accelerated amortizations
Accelerated amortizations were restated and converted into straight line amortisations in compliance with
group valuation rules.
The amount booked in 2003, is EUR 12.1 million.

VII. FORMATION EXPENSES
Balance at the end of previous year 13,547
Changes during the year
Expenses incurred 137
Depreciation -3,471
Balance at the end of the year 10,213
VIII. INTANGIBLE ASSETS
R. & D. Concessions Goodwill TOTAL
costs patents
licences
a) Cost
Balance at the end of previous year
Changes during the year:
21,407 10,508 132,442 164,357
– Impact variation perimeter 73 6,249 6,322
– Acquisitions including capitalized expenditures 1,682 800 670 3,152
– Disposals and sales -75 -114 -36,046 -36,235
–Transfer between accounts -6,335 7,320 -985 0
–Conversion differences -132 -8,339 -8,471
Balance at the end of the year 16,679 18,455 93,991 129,125
b) Depreciation, write-downs
Balance at the end of previous year -16,422 -7,148 -72,016 -95,586
Changes during the year:
– Impact variation perimeter -39 -844 -883
– Amortisation -2,661 -1,808 -4,172 -8,641
–Write off due to disposals cancellations 75 52 35,962 36,089
–Transfer between accounts 5,043 -5,776 733 0
–Conversion differences 49 2,859 2,908
Balance at the end of the year -13,965 -14,670 -37,478 -66,113
c) Net book value at the end of the year 2,714 3,785 56,513 63,012
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IX. TANGIBLE FIXED ASSETS
Land and Plant, Furniture Leased Other Work in TOTAL
buildings machinery and assets progress
and
equipment
vehicles
a) Cost
Balance at the end of previous year
Changes during the year:
338,583 1,460,226 43,489 13,279 79,795 27,059 1,962,432
– Impact variation perimeter
– Acquisitions including
9,332 30,049 3,084 199 366 43,030
capitalized expenditures 11,108 64,912 4,372 9,228 28,964 118,584
– Disposals and sales -5,718 -38,501 -2,192 -6,630 -121 -53,162
–Transfer between accounts 6,442 26,825 2,802 -10,420 -2,933 -22,716 0
–Conversion differences -7,237 -35,467 -1,753 -379 -728 -45,564
Balance at the end of the year 352,510 1,508,044 49,802 2,859 79,280 32,824 2,025,320
b) Depreciation and write-downs
Balance at the end of previous year -153,347 -1,067,708 -33,267 -12,902 -59,470 -1,326,695
Changes during the year:
– Impact var. perimeter 133 -10,488 -1,880 -939 -13,174
– Depreciation and write downs -11,509 -84,340 -5,116 -76 -7,046 -108,087
–Write-off due to disposals and
sales 5,534 36,868 2,080 6,438 50,920
–Transfer between accounts -44 -10,559 -1,687 10,421 1,869 0
–Conversion differences 1,211 17,179 1,101 128 19,619
Balance at the end of the year -158,022 -1,119,048 -38,769 -2,557 -59,020 -1,377,417
c) Net book value at the end of the year 194,488 388,997 11,033 302 20,260 32,824 647,903
whereas:
– land and buildings 302

X. FINANCIAL FIXED ASSETS
A1. Companies valued under the equity method
Balance at the end of previous year 10,897
Share of profits 4,975
Conversion differences -2,421
Balance at the end of the year 13,451
Related
companies
Others TOTAL
B1. Other investments, shares and equity certificates
Balance at the end of previous year 6,579 654 7,233
Disposals, withdrawals -3,861 128 -3,733
Balance at the end of the year 2,718 782 3,500
C2. Long-term receivables
Balance at the end of previous year 182 2,110 2,292
Variation (increases, decrease) 220 -204 16
Balance at the end of the year 402 1,906 2,308
XI. LIABILITIES AND SHAREHOLDERS’ EQUITY
A. Group shareholders’ equity
Share Share Reserves Goodwill Conversion Capital Total
capital premiums differences grants
At 31/12/2002 132,000 30,753 586,645 359 7,053 1,130 757,940
Capital increase 1,000 1,848 2,848
Net profit attributable to group 43,458 43,458
Dividend distribution -31,234 -31,234
Translation differences -17,437 -17,437
Changes in capital grants -228 -228
Cancellation reserve own shares 994 994
At 31/12/2003 133,000 32,601 598,869 1,353 -10,384 902 756,341
B. Minority interests
At 31/12/2002 14,326
Net profit attributable to group -16
Impact variation perimeter -13,908
At 31/12/2003 402
105

106
C. Provisions and deferred tax
2003 2002
Provisions: pensions and similar obligations 40,630 32,743
taxation 2,718 1,308
major repairs and maintenance 0 5,586
other risks and charges 25,303 52,476
deferred tax 46,128 28,482
114,779 120,595
XII. CONSOLIDATION DIFFERENCES AND SHAREHOLDERS’ EQUITY
Differences in consolidation
Positive Negative
Net book value at the start of the year
Movements during the year: 21,541 359
New acquisitions 28,534 1,243
Depreciation -5,064 -249
Net book value at the end of the year 45,011 1,353
XIII. BREAKDOWN OF FINANCIAL LIABILITIES LISTED ACCORDING MATURITY DATE
within 1 to more than
1 year 5 years 5 years
Financing lease 417 752
Banks 13,080 114
Others 600 62,152
Non-subordinated debenture loans 40,098
1,017 116,082 114
XIV. CONSOLIDATED PROFIT AND LOSS STATEMENT
2003 2002
A. 1. Sales per division (mil./EUR)
– Inorganic chemicals 534 611
– Fine chemicals 261 264
– PVC & compounds 341 298
– Plastics converting 523 500
– Natural organic products 313 261
1,972 1,934
2. Sales per geographical market
– France 26%
– UK 15%
– Netherlands 8%
– Belgium 7%
– Germany 8%
– Others EU 11%
Total EU 75%
Out of EU 25%
100%

B. Breakdown of the average personnel and personnel costs
1. Average number of personnel 2003 2002
– Workers 5,279 5,259
– Employees 2,821 2,616
– Management personnel 61 67
8,161 7,942
2. Personnel costs 2003 2002
– Remuneration 260,262 251,086
– Employer’s social security charges and insurance premiums 81,531 83,644
– Other personnel costs 28,168 28,549
369,961 363,279
XV. OFF-BALANCE SHEET COMMITMENTS
2003 2002
1. Guarantees given by third parties on our behalf 14,310 14,298
2. Guarantees given on behalf of third parties 4,401 310
3. Guarantees received from third parties 13,588 1,596
4. Commitments to purchase due to financial leases 2,634 3,334
5. Commitments to the financial leases 0 1,780
6. Forward sales of currencies 6,000 0
7. Forward purchases of currencies 369 0
XVI. FINANCIAL RELATIONSHIPS WITH MEMBERS OF THE BOARD OF DIRECTORS OF
THE CONSOLIDATING COMPANY
A. Total amount of remuneration (without quotas) granted to the members of the board of directors of the consolidating
company for their responsibilities is 302,893 EUR.
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108
Statutory auditor’s report on the consolidated accounts of the
tessenderlo group
Submitted to general shareholders’ meeting of
Tessenderlo Chemie NV
Consolidated accounts for the year ended December 31, 2003
In accordance with legal and statutory requirements, we are reporting to you on the completion of the mandate
which you have entrusted to us.
We have audited the consolidated financial statements for the year ended December 31, 2003 with a balance
sheet total of 1 588 692 000 EUR and a profit for the year of 43 458 000 EUR These consolidated financial
statements have been prepared under the responsibility of the Board of Directors of the Company. The
financial statement of a number of companies which statements reflect total assets of EUR 340 188 000 and
total result of EUR 6 965 000 in the consolidated financial statements were audited by other auditors whose
reports have been furnished to us, and our opinion is based solely on the reports of the other auditors. In
addition we have reviewed the directors’ report.
Unqualified audit opinion on the consolidated financial statements
Our audit was performed in accordance with the standards of the Institut des Reviseurs d’Entreprises-Instituut
der Bedrijfsrevisoren. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free of material misstatement, taking into
account the Belgian legal and regulatory requirements relating to the consolidated financial statements.
In accordance with these standards we have taken into account the administrative and accounting organisation
of your group as well as the system of internal control. The group’s management have provided us with
all explanations and information which we required for our audit. We have examined on a test basis, the
evidence supporting the amounts included in the consolidated financial statements. We have assessed the
accounting policies used, the basis for consolidation, the significant accounting estimates made by the Company
and the overall presentation of the consolidated financial statements. We believe that our audit and the
report(s) of the other auditors provide a reasonable basis for our opinion.
In our opinion, based on our audit and the reports of the other auditors, the consolidated financial statements
of Tessenderlo Chemie N.V. for the year ended December 31, 2003 present fairly the financial position
of the group and the consolidated results of its operations, in conformity with the prevailing legal and regulatory
requirements, and the disclosures made in the notes to the consolidated financial statements are
adequate

Additional assertion and information
As required by generally accepted auditing standards the following additional assertion and information are
provided. This assertion and information do not alter our audit opinion on the consolidated financial statements.
– The consolidated directors’ report contains the information required by law and is in accordance with the
consolidated financial statements.
– As indicated in the notes to the accounts, the accounting policies used in the preparation of these consolidated
financial statements have been modified compared to the prior year as part of the process of applying
IFRS in the preparation of the consolidated financial statements as from the financial year ending
December 31, 2005.
Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren/Reviseurs d’Entreprises
Statutory Auditor
represented by Ludo Ruysen,
Bedrijfsrevisor/Reviseur d’Entreprises
Antwerp, May 3, 2004
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110
TESSENDERLO CHEMIE NV – BALANCE SHEET
2003 2002
ASSETS
(in thousand EUR)
FIXED ASSETS 1,067,097 970,341
II. Intangible assets 2,952 4,892
III. Tangible assets 120,355 122,223
A. Land and buildings 32,839 33,515
B. Plant, equipment and tools 75,968 78,256
C. Furniture and vehicles 2,185 2,788
D. Leased assets and similar rights 302 377
E. Other tangible fixed assets 133 144
F. Capital work in progress and advance payments 8,928 7,143
IV. Financial assets 943,790 843,226
A. Investments in related companies
1. Investments
a) Consolidated companies 942,560 842,042
c) Other related companies 299 299
C. Other financial assets
1. Investments, shares and equity certificates 635 635
2. Receivables 296 250
CURRENT ASSETS 208,016 201,154
VI. Stocks and orders in progress 58,045 58,856
A. Stocks
1. Raw materials and consumable 26,290 26,575
2. Work in progress 808 1,017
3. Finished goods 29,509 30,553
4. Goods purchases for resale 1,438 711
VII. Receivables due within one year 142,131 137,094
A. Trade receivables 105,694 132,217
B. Other receivables 36,437 4,877
IX. Cash and cash equivalents 6,746 4,612
X. Prepaid expenses and accrued income 1,094 592
Total assets 1,275,113 1,171,495

TESSENDERLO CHEMIE NV – BALANCE SHEET
2003 2002
SHAREHOLDERS’ EQUITY AND LIABILITIES
(in thousand EUR)
SHAREHOLDERS’S EQUITY 612,408 590,712
I. Share capital 133,000 132,000
A. Issued capital 133,000 132,000
II. Share premiums 32,601 30,753
IV. Reserves 17,020 17,019
A. Legal reserves 13,300 13,200
B. Undistributable reserves
2. Other 933 933
C. Tax exempt reserves 2,787 2,886
V. Retained earnings 429,523 410,652
VI. Capital grants 264 288
PROVISIONS AND
DEFERRED TAXES 34,665 36,964
VII. A. Provisions for risks and charges 34,122 36,357
A1. Pensions and similar obligations 11,826 5,106
A3. Major repairs and maintenance 2,265 3,221
A4. Other 20,031 28,030
B. Deferred taxes 543 607
LIABILITIES 628,040 543,819
VIII. Liabilities due in more than one year 131,783 127,547
A. Financial liabilities
2. Non subordinated loans 98 80
5. Other loans 131,685 127,467
IX. Liabilities due within one year 495,442 415,081
A. Long-term liabilities payable within
the year 19,139 20,155
B. Financial liabilities
1. Banks 1 355
C. Trade payables
1. Accounts payable 54,872 60,416
E. Taxes, wages and benefits
payable
1. Taxes 6,345 8,583
2. Wages and benefits payable 15,300 16,073
F. Other liabilities 399,785 309,499
X. Accrued expenses and deferred income 815 1,191
Total shareholders’ equity and liabilities 1,275,113 1,171,495
111

112
TESSENDERLO CHEMIE NV – PROFIT & LOSS STATEMENT
2003 2002
(in thousand EUR)
I. Sales and operating income 526,450 561,256
A. Sales 503,227 541,336
B. Change in work in progress, finished
goods and orders in progress
(increase +/decrease -) -1,253 -2,138
C. Production capitalized 1,722 2,161
D. Other operating income 22,754 19,897
II. Cost of sales and operating charges (-) 509,949 529,214
A. Raw materials and goods purchased for resale
1. Purchases 254,468 268,616
2. Changes in stocks (increase -/decrease +) -350 -1,821
B. Services and other goods 131,644 125,968
C. Wages, salaries, social charges and pensions 100,192 102,470
D. Depreciation and amortization on
formation expenses, tangible and
intangible fixed assets 21,240 23,232
E. Amount written-off stocks
and trade receivables
(charges + write-backs -) 99 864
F. Provisions for risks and charges (charges less
utilisation and write-backs) (charges +, write-backs -) -2,236 5,000
G. Other operating charges 4,892 4,885
III. Operating profit 16,501 32,042
IV. Financial income 22,668 21,552
A. Income from financial assets 22,543 21,353
B. Income from current assets 66 146
C. Other financial income 59 53
V. Financial charges 13,186 16,540
A. Interest and other debt charges 12,157 15,233
C. Other financial expenses 1,029 1,307
Net financial profit 9,482 5,012
VI. Ordinary profit before taxes 25,983 37,054
VII. Exceptional income 23,769 -
D. Gains on disposal of fixed assets 23,769 –
IX. Profit before taxes 49,752 37,054
IX Bis A. Transfer from deferred taxes 64 77
B. Transfer to differed taxes - -519
X. Income taxes 290 -4,717
A. Income taxes -3,150 -8,001
B. Adjustment of income taxes and
write-back of tax provisions 3,440 3,284
XI. Profit 50,106 31,895
XII. Transfer from untaxed reserves 99 90
Transfer to untaxed reserves - -981
XIII. Profit for the year to be allocated 50,205 31,004

ALLOCATIONS AND DISTRIBUTIONS
Your Board propose to allocate the
– 2003 profits, being 50,205
– Increased by prior years’ retained earnings 410,652
Totalling: 460,857
in the following manner:
– To legal reserve 100
– Quotas 506
– Dividends 30,728
– Retained earnings 429,523
Totalling: 460,857
If you approve this proposed allocation, the gross dividend will be 1.1333 EUR; it gives a net dividend of
0,85 EUR for the 27,113,352 ordinary shares and for the VVPR dividend a net amount of 0.9633 EUR remittance
of coupon n° 67.
VIII. SHARE CAPITAL
Amount Number of
(in thousand EUR) shares
A. SHARE CAPITAL
1. Subscribed Capital (Rubric 100 of balance sheet)
– Balance at the end of previous year
Changes during the year:
132,000 26,975,013
– Increase 1,000 138,339
– Balance at the end of the year 133,000 27,113,352
2. Capital:
2.1. Category of shares
Ordinary shares
Principal shareholder:
EMC Parbel NV: 40,34%
Rue du Trône 130 – 1050 Brussels
Announcement date: 20/07/1998
2.2. Registered shares & ordinary shares
133,000 27,113,352
Registered shares 12,360,012
Ordinary shares
Changes of the year
14,753,340
Number of shares at 31/12/2002 26,975,013
Capital increase (personnel) 138,339
Number of shares at 31/12/2003 27,113,352
E. AMOUNT OF AUTHORIZED CAPITAL, NOT ISSUED 122,717
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114
XX. VALUATION RULES
ASSETS
Formation expenses: 100% depreciation.
Intangible assets:
– 20% depreciation.
– Research expenses are fully depreciated or by taking into account the existing tax provisions that encourage
scientific research.
Tangible assets:
Are entered in the assets of the balance sheet at their purchase price, including incidental expenses and
irrecoverable taxes, or at their cost price or at their contribution value.
Depreciation is carried out on the basis of the straight-line method; the rates are the following:
– land 0.00%
– industrial buildings, residential buildings, construction and appreciation 3.00%
– rented buildings – financing appreciation on furniture, fittings and plant 5.00%
– furniture, fittings, plant, renovation work to buildings 10.00%
– pilot plant 20.00%
– vehicles 25.00%
– computer hardware 33.33%
Accelerated or decreasing depreciation will be applied under the current applicable tax rules.
Financial assets:
• Investments and other financial assets:
Are entered in the assets of the balance sheet at their purchase cost, including incidental expenses, or contribution
cost less any amounts remaining to be paid in.
At the end of the financial year, investments, shares and securities are the subject of an individual evaluation,
based on the asset value, namely the net book value adjusted by the carefully estimated, hidden increases
or decreases in value, and taking the potential economic value of the company concerned and the
prospects of profitability in normal economic circumstances into account.
The selected rules discard all the elements of evaluation that are exceptional or that lead to non-stable
conclusions.
The Board, if it considers it necessary, will have certain and stable increases in value registered. When
decreases in value observed are considered stable by the Board, they are the subject to a write-down.

A write-back is carried out when a stable increase in value is observed on shares which might previously
have been the subject of such a write-down.
• Receivables at more than one year:
Receivables are registered at their face value. If they are denominated in foreign currencies, they are registered
for their exchange value in Belgian francs at the exchange rate on the day of the transaction. At the
end of the financial year, they are valued according to the rules of evaluation decided for investments,
shares and securities (see above).
• Stocks:
Purchased goods in inventories at the end of the financial year are valued at the individualized acquisition
cost, including incidental expenses and at the individualized cost price for finished products. The cost
prices of finished products are determined according to direct production costs with an added portion for
indirect costs (whole cost price).
The method applied is the weighted average price method. At the close of the period, raw material and
finished product stocks are the subject of an individual evaluation according to market prices or current
sales value. Stocks are the subject of write-downs when this evaluation reveals a depreciation compared
to their book value. Stock in process is valued at the cost of the raw materials in direct costs.
• Receivables within one year:
They are accounted at their face value. Receivables in foreign currencies are valued at the last exchange
rate of the financial year.
A write-down is carried out when the sales value at the end of the period is less than the book value;
a mark-up is accounted for in the opposite case; exchange differences observed are incorporated in the
profit or loss for the financial year.
• Cash at bank and cash equivalents:
At face value and last exchange rate for foreign currencies.
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116
LIABILITIES
• Provisions for risks and charges:
At the close of each financial year, the Board of Directors, acting prudently, sincerely and in good faith,
reviews the provisions to be constituted to cover more particularly:
– risks arising from security;
– other risks, if necessary.
Provisions related to previous periods are reviewed at regular intervals and written back to the results if
they have become purposeless.
• Amounts payable after more than one year:
Entered in the accounts at their face value. Amounts payable in foreign currencies are processed like
receivables.
• Amounts payable within one year:
They are entered in the accounts at their face value. Amounts payable in foreign currencies are processed
like receivables. A value adjustment is made and incorporated into the income statement for the period.
PROFIT AND LOSS ACCOUNT
• Exchange differences:
The above mentioned exchange differences are written back to the operating result unless those exchange
differences or conversion differences are specifically related to other items of the income statement and
are allocated to it as such.
XXI. COMPANY’S PENSION PLAN
A complementary pension scheme is established in function of ‘a defined benefit plan’ which is calculated in
function of the remuneration and the length of service. For the workers a contract of endowment assurance
is concluded in order to guarantee a pension capital computed on the basis of the length of service.
In accordance with the legislation, the report of the management and the annual accounts of Tessenderlo
Chemie NV, together with the report of the commissaris-revisor have been filed at the National Bank of
Belgium. They are also available on request, addressed to Tessenderlo Chemie NV, Troonstraat 130
B-1050 Brussels.

Report of the Statutory Auditor on the statutory accounts submitted to
the general shareholders’ meeting of Tessenderlo Chemie NV
Statutory accounts for the year ended 31 December 2003
In accordance with legal and statutory requirements, we are reporting to you on the completion of the mandate
which you have entrusted to us.
We have audited the financial statements as of and for the year ended 31 December 2003 with a balance
sheet total of 1 275 113 000 EUR and a profit for the year of 50 106 000 EUR. These financial statements
have been prepared under the responsibility of the Board of Directors of the Company. In addition we have
carried out the specific additional audit procedures required by the Company law.
Unqualified audit opinion on the financial statements
We conducted our audit in accordance with the standards of the ‘Institut des Reviseurs d’Entreprises-Instituut
der Bedrijfsrevisoren’. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement, taking into account the
legal and regulatory requirements applicable to financial statements in Belgium.
In accordance with these standards we have considered the Company’s administrative and accounting organisation
as well as its internal control procedures. The Company’s management have provided us with all explanations
and information which we required for our audit. We examined, on a test basis, evidence supporting
the amounts in the financial statements. We assessed the accounting policies used and significant
accounting estimates made by the Company, as well as the overall presentation of the financial statements.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, taking into account the prevailing legal and regulatory requirements, the financial statements
present fairly the Company’s net worth and financial position as of 31 December 2003 and the results of its
operations for the year then ended and the disclosures made in the notes to the financial statements are
adequate.
Additional assertions and information
As required by generally accepted auditing standards the following additional assertions and information are
provided. These assertions and information do not alter our audit opinion on the financial statements.
– The directors’ report contains the information required by law and is consistent with the financial statements.
– The appropriation of results proposed to the general meeting complies with the legal and statutory provisions.
– There are no transactions undertaken or decisions taken in violation of the Company’s statutes or Company
Law which we have to report to you.
– Without prejudice to certain formal aspects of minor importance, the accounting records are maintained
and the financial statements have been prepared in accordance with the applicable Belgian legal and regulatory
requirements.
Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren – Reviseurs d’Entreprises
Statutory Auditor
represented by L. Ruysen
Antwerp, 23 April 2004
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TESSENDERLO GROUP
General Management,
Corporate Secretary,
Human Resources, IT and Organisation
Development
Commercial Management,
Finance and Accounting Management
rue du Trône, 130
BE-1050 Bruxelles (Belgium)
Troonstraat 130
BE-1050 Brussel (Belgium)
Tel.: + 32 2 639 18 11
Fax: + 32 2 639 19 99
Website: www.tessenderlogroup.com
Headoffice and General
Technical Management
Stationsstraat
BE-3980 Tessenderlo (Belgium)
Tel.: +32 13 61 22 11
Fax: +32 13 66 81 40
Website: www.tessenderlogroup.com
INORGANIC CHEMICALS DIVISION
ALIPHOS SAS
Headoffice
69/71 rue du Chevaleret
FR-75013 Paris (France)
Tel.: +33 144 06 52 00
Fax: +33 144 06 52 22
Bicarbonate Plant
FR-68310 Wittelsheim (France)
Tel.: +33 389 26 62 62
Fax: +33 389 26 62 63
PRODUITS CHIMIQUES
DE LOOS SAS
22, rue Clémenceau
FR-59120 Loos (France)
Tel.: +33 320 22 58 58
Fax: +33 320 93 59 80
Website: www.pcloos.com
TESSENDERLO CHEMIE NV
Bergstraat, 32
BE-3945 Ham (Belgium)
Tel.: +32 13 61 12 11
Fax: +32 13 66 80 84
Website: www.tessenderlogroup.com
TESSENDERLO CHEMIE NV
Stationsstraat
BE-3980 Tessenderlo (Belgium)
Tel.: +32 13 61 22 11
Fax: +32 13 66 81 40
Website: www.tessenderlogroup.com
ADDRESSES
TESSENDERLO CHEMIE
ROTTERDAM BV
Maassluissedijk, 103
NL-3133 KA Vlaardingen (The Netherlands)
Tel.: +31 10 445 27 77
Fax: +31 10 445 27 38
TESSENDERLO DAVISON CHEMICALS LLC
1916 Farmerville Highway
US-Ruston, LA 71270 (USA)
Tel.: +1 318 255 38 50
Fax: +1 318 242 52 99
Website: www.tdchome.com
TESSENDERLO ITALIA srl
Feed Phosphate Plant – Division Italphos
Via Quari Destra 41
IT-37044 Cologna Veneta (Verona) (Italy)
Tel.: +39 0442 85 555
Fax: +39 0442 410 924
TESSENDERLO ITALIA srl
30/32 Via Massari
IT-28886 Pieve Vergonte (VB) (Italy)
Tel.: +39 0324 86 01
Fax: +39 0324 86 03 73

TESSENDERLO KERLEY Inc.
2255 N° 44 th Street, Suite 300
US-Phoenix - Arizona 85008 – 3279 (USA)
Tel.: +1 602 889 83 00
Fax: +1 602 889 84 30
Website: www.tkinet.com
ZEOLINE SA
rue J. Wauters, 144
BE-4480 Engis (Belgium)
Tel.: +32 42 73 92 63
Fax: +32 42 75 79 60
SALES OFFICES
BRITPHOS Ltd
Rawdon House, Green Lane,
GB-Yeadon, Leeds LS 19 BY (Great Britain)
Tel.: +44 113 250 14 14
Fax: +44 113 250 65 60
HGS Handelsgesellschaft für
Spezialfuttermittel GmbH
Rothenbaumschaussee, 58
DE-20148 Hamburg (Germany)
Tel.: +49 404 411 40
Fax: +49 404 411 4175
SCANPHOS A/S
Blokken, 21
DK-3460 Birkerod (Denmark)
Tel.: +45 45 82 82 22
Fax: +45 45 82 72 22
TESSENDERLO CHEMIE España SA
Carrera de San Jerónimo 17-5°B
ES-28014 Madrid (Spain)
Tel.: +34 91 429 98 00
Fax: +34 91 429 93 67
TESSENDERLO CHEMIE HUNGARIA Kft
Komócsy u. 40 Fszt. 1
HU-1141 Budapest (Hungary)
Tel.: +36 1 384 03 69
Fax: +36 1 251 82 87
TESSENDERLO CHEMIE SCHWEIZ AG
Zürcherstrasse 42
CH-5330 Zurzach (Switserland)
Tel.: +41 56 249 09 68
Fax: +41 56 249 09 67
Website: www.tessenderlo.ch
TESSENDERLO KERLEY
Business Center/6 th floor
Box 2795
LA-Jounieh (Lebanon)
Tel.: +961 99 34 635
Fax: +961 99 34 635
TESSENDERLO KERLEY MEXICO SA de CV
Blvd Rodolfo Ellas Calles
Ciudad Obregon, Sonora
MX-Mexico 85000 (Mexico)
Tel.: +11 52 64 17 59 53
Fax: +11 52 64 17 96 00
Website: www.tkinet.com
TESSENDERLO KERLEY LATINOAMERICANA SA
Andres de Fuenzalida 133 depto A
CL-9358 Santiago (Chile)
Tel.: +56 2 334 65 71
Fax: +56 2 333 72 21
TESSENDERLO KERLEY PERU SAC
Parque Industrial
Jacinto Ibanez 131
PE-Arequipa (Peru)
Tel.: +51 54 24 18 24
Fax: +51 54 23 28 55
Website: www.tkinet.com
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120
TESSENDERLO KERLEY Yildiz
Oya Sokak, No 2/2, KAT 2
80300 Gayrettepe
TR-Istanbul (Turkey)
Tel.: +90 212 217 56 26
Fax: +90 212 217 56 31
Website: www.tkinet.com
TESSENDERLO POLSKA Sp.zo.o.
ul. Szarych Szeregów 7
PL-60-462 Poznan (Poland)
Tel.: +48 61 840 00 40
Fax: +48 61 840 02 96
FINE CHEMICALS DIVISION
CALAIRE CHIMIE SAS
1, Quai d’Amérique
FR-62104 Calais (France)
Tel.: +33 321 46 21 21
Fax: +33 321 46 21 20
CHEMIELIM NV
Ankerkade, 111
NL-6222 NL Maastricht (The Netherlands)
Tel.: +31 433 52 59 59
Fax: +31 433 52 59 55
CHEMILYL SAS
22, rue Clémenceau
FR-59120 Loos (France)
Tel.: +33 320 22 58 58
Fax: +33 320 93 59 80
FARCHEMIA srl
Via Bergamo, 121
IT-24047 Treviglio (BG) (Italy)
Tel.: +39 0363 31 401
Fax: +39 0363 45 985
Web site: www.farchemia.it
LIANYUNGANG TAILE
CHEMICAL FACTORY
188, Xinhai Road
Lianyungang City
CN-Jiangsu Province (China)
Tel.: +86 518 525 55 67
Fax: +86 518 525 56 86
Website: www.tailechem.com
TESSENDERLO CHEMIE NV
Stationsstraat
BE-3980 Tessenderlo (Belgium)
Tel.: +32 13 61 22 11
Fax: +32 13 66 81 40
Website: www.tessenderlogroup.com
TESSENDERLO FINE CHEMICALS Ltd
Macclesfield Road
GB-ST13 8UZ Leek, Staffordshire (Great Britain)
Tel.: +44 1 538 39 91 00
Fax: +44 1 538 39 90 25
Website: www.tessenderlofinechemicals.co.uk
TESSENDERLO ITALIA srl
Fine Chemicals Plant
30/32 Via Massari
IT-28886 Pieve Vergonte (VB) (Italy)
Tel.: +39 0324 86 01
Fax: +39 0324 86 03 73
TESSENDERLO UK Ltd
West Bank Dock Estate
GB-Widnes, Cheshire, WA8 0NY (Great Britain)
Tel.: +44 1 514 24 42 81
Fax: +44 1 514 23 28 14

PVC DIVISION
LVM (Limburgse Vinyl
Maatschappij) NV
H. Hartlaan,
Industrieterrein Schoonhees 2030
BE-3980 Tessenderlo (Belgium)
Tel.: +32 13 61 02 11
Fax: +32 13 66 84 06
Website: www.lvm.be
LVM Limburg BV
Koolwaterstofstraat 1
NL-6161 RA Geleen (The Netherlands)
Tel.: +31 464 76 81 48
Fax: +31 464 76 46 41
LVM TECHNICAL SERVICE
Parc Technologique Alata
c/o SAV BP 10
FR-60550 Verneuil-en-Halatte (France)
Tel.: +33 344 55 66 77
Fax: +33 344 55 66 76
APPLIED RESEARCH AND
TECHNICAL SERVICE
A.R.T.S.
H. Hartlaan,
Industrieterrein Schoonhees 2030
BE-3980 Tessenderlo (Belgium)
Tel.: +32 13 61 02 11
Fax: +32 13 66 84 06
PLASTIVAL SAS
2, Route de Santoche
FR-25340 Clerval (France)
Tel.: +33 381 99 18 18
Fax: +33 381 97 84 97
Website: www.plastival.fr
SAPLAST SAS
22, rue de la Rochelle
Port du Rhin
FR-67100 Strasbourg (France)
Tel.: +33 388 65 82 00
Fax: +33 388 40 00 80
Website: www.cousintessier.com
SAV SAS Plant Mazingarbe
Chemin des Soldats BP 49
FR-62160 Bully-les-Mines (France)
Tel.: +33 321 72 85 06
Fax: +33 321 71 82 60
TCT POLSKA Sp.zo.o.
Ul. 15 Sierpnia 106
PL-96-500 Sochaczew (Poland)
Tel.: +48 46 863 02 01
Fax: +48 46 863 00 96
Website: www.cousintessier.com
THERMOPLASTIQUES COUSIN-TESSIER SAS
rue de la Vallée 3
FR-85130 Tiffauges (France)
Tel.: +33 251 65 71 43
Fax: +33 251 65 71 61
Website: www.cousintessier.com
SALES OFFICES
LVM FRANCE SAS
69/71 rue du Chevaleret
FR-75013 Paris (France)
Tel.: +33 144 06 52 27
Fax: +33 144 06 52 22
LVM INTERNATIONAL
c/o LVM
H. Hartlaan,
Industrieterrein Schoonhees 2030
BE-3980 Tessenderlo (Belgium)
Tel.: +32 13 61 02 11
Fax: +32 13 66 84 06
Website: www.lvm.be
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122
LVM ITALIA srl
Via Alserio, 22
IT-20159 Milano (Italy)
Tel.: +39 02 66 80 19 84
Fax: +39 02 66 80 01 98
LVM KUNSTSTOFFE GmbH
& Co. KG
Bahnstrasse 29-31
DE-40878 Ratingen (Germany)
Tel.: +49 210 21 00 50
Fax: +49 210 21 00 577
LVM NEDERLAND BV
Nijverheidsweg 4
NL-4854 MT Bavel (The Netherlands)
Tel.: +31 161 438 400
Fax: +31 161 438 409
LVM UNITED KINGDOM Ltd
3, Meadway Court
Meadway Technology Park
GB-Stevenage Herts SG1 2EF (Great Britain)
Tel.: +44 1438 741 711
Fax: +44 1438 743 155
PLASTICS CONVERTING DIVISION
CHELSEA BUILDING PRODUCTS Inc.
565, Cedar Way
US-Oakmont, Pennsylvania 15139 (USA)
Tel.: + 1 412 826 80 77
Fax: +1 412 826 80 96
Website: www.chelseabuildingproducts.com
DE HOEVE
KUNSTSTOFRECYCLING BV
De Nieuwe Haven, 16
NL-7772 BC Hardenberg (The Netherlands)
Tel.: +31 523 28 83 89
Fax: +31 523 26 03 89
DYKA BV
Steenwijk Plant
Produktieweg, 7
NL-8331 LJ Steenwijk (The Netherlands)
Tel.: +31 521 53 49 11
Fax: +31 521 53 43 35
Website: www.dyka.com
DYKA PLASTICS NV
Stuifzandstraat 47
BE-3900 Overpelt (Belgium)
Tel.: +32 11 80 04 20
Fax: +32 11 80 35 27
Website: www.dyka.com
DYKA POLSKA Sp.zo.o.
ul. Belgijska 5
PL-55-221 Jelcz-Laskowice (Poland)
Tel.: +48 71 301 00 00
Fax: +48 71 301 00 01
DYNAPLAST EXTRUCO Inc.
11840, 55e Avenue
Montréal (Québec)
CA-H1E 2K3 (Canada)
Tel.: +1 514 881 20 90
Fax: +1 514 881 20 89
Website: www.dynaplastextruco.com
EUROCELL BUILDING PLASTICS Ltd
Fairbrook House
Clover Nook road
Alfreton-Derbyshire
GB-DE 55 4RF (Great Britain)
Tel.: +44 1773 842 200
Fax: +44 1773 842 199
Website: www.eurocell.co.uk

EUROCELL PROFILES Ltd
Fairbrook House
Clover Nook road
Alfreton-Derbyshire
GB-DE 55 4RF (Great Britain)
Tel.: +44 1773 842 200
Fax: +44 1773 842 199
Website: www.eurocell.co.uk
FAIRBROOK plc
Fairbrook House
Clover Nook road
Alfreton-Derbyshire
GB-DE 55 4RF (Great Britain)
Tel.: +44 1773 842 200
Fax: +44 1773 842 199
Website: www.eurocell.co.uk
H.L. PLASTICS Ltd
Fairbrook House
Clover Nook road
Alfreton-Derbyshire
GB-DE 55 4RF (Great Britain)
Tel.: +44 1773 842 200
Fax: +44 1773 842 199
Website: www.hlplasticsltd.co.uk
MEDABIL TESSENDERLO SA
Av. Das Industrias 700
CEP 90200-290
BR-Porto Alegre RS (Brasil)
Tel.: +55 51 33 71 21 99
Fax: +55 51 33 71 31 90
Website: www.medabil.com.br
PLASTIVAL SAS
2, Route de Santoche
FR-25340 Clerval (France)
Tel.: +33 381 99 18 18
Fax: +33 381 97 84 97
Website: www.plastival.fr
SOTRA-SEPEREF SAS
25, rue de Brévillers
FR-62140 Ste Austreberthe (France)
Tel.: +33 321 86 59 00
Fax: +33 321 86 59 01
Website: www.sotra-seperef.com
TARPEY – HARRIS Ltd
Fairbrook House
Clover Nook road
Alfreton-Derbyshire
GB-DE 55 4RF (Great Britain)
Tel.: +44 1773 842 200
Fax: +44 1773 842 199
WYMAR INTERNATIONAL NV
Brugstraat 27
BE-8720 Oeselgem (Belgium)
Tel.: +32 9 388 95 71
Fax: +32 9 388 64 95
Website: www.wymar.com
SALES OFFICES
DYKA GmbH
Stahndorferstrasse, 32
DE-14513 Teltow (Germany)
Tel.: +49 33 283 99 40
Fax: +49 33 283 99 450
DYKA s.r.o.
Unhostská 505
CZ-27361 Velká Dobrá (Czech Republic)
Tel.: +420 312 666 011
Fax: +420 312 685 026
JOHN DAVIDSON PIPES Ltd
Townfoot Industrial Estate
Longtown, Carlisle
GB-Cumbria CA6 5LY (Great Britain)
Tel.: +44 1228 79 15 03
Fax: +44 1228 79 20 51
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124
NORDROHR GmbH
Schusterring 41
DE-25355 Barmstedt (Germany)
Tel.: +49 41 23 90 000
Fax: +49 41 23 90 00 39
PLASTIVAL s.r.o.
Mikuleckého 1310/6
CZ-147 00 Praha 4 (Czech Republic)
Tel.: +420 244 470 880
Fax: +420 241 490 089
Website: www.plastival.cz
PROFEX SAS
rue de Vimy - ZI les Quatorze
FR-62210 Avion (France)
Tel.: +33 321 08 57 20
Fax: +33 321 08 57 30
Website: www.profex.fr
TESSENDERLO CHEMIE HUNGARIA Kft
Wymar division
Csepeli Út. 15
HU-2310 Szigetszentmiklos (Hungary)
Tel.: +36 24 444 800
Fax: +36 24 443 553
Website: www.wymar.com
WYMAR POLSKA Sp.zo.o.
Ul. Gnieznienska 47
PL-62-100 Wagrowiec (Poland)
Tel.: + 48 67 26 26 246
Fax: + 48 67 26 27 510
Website: www.wymar.com
WYMAR SYSTEMS Ltd
Wymar House
Severn Road
Stourport-on-Severn
Worcestershire
GB-DY13 9EZ (Great Britain)
Tel.: +44 1299 82 27 77
Fax: +44 1299 82 22 36
Website: www.wymar.com
NATURAL ORGANIC PRODUCTS DIVISION
ETS CAILLAUD SAS
Route d’Alençon
FR-61400 Saint-Langis-les-Mortagne (France)
Tel.: +33 233 85 86 87
Fax: +33 233 25 49 06
PB GELATINS
Marius Duchéstraat, 260
BE-1800 Vilvoorde (Belgium)
Tel.: +32 2 255 62 21
Fax: +32 2 253 96 18
Website: www.pbgelatins.com
PB GELATINS FRANCE SAS
2, rue de Hurtigheim
FR-67117 Furdenheim (France)
Tel.: +33 388 69 18 70
Fax: +33 388 69 14 91
Website: www.pbfrance.com
PB GELATINS GmbH
Grosse Drakenburgerstrasse 43
DE-31582 Nienburg/Weser (Germany)
Tel.: +49 50 21 60 100
Fax: +49 50 21 60 10 60
Website: www.pbgelatins.com
PB GELATINS UK Ltd
Industrial Estate
Treforest-Mid Glamorgan
GB-CF 375 SU (Great Britain)
Tel.: +44 144 384 93 00
Fax: +44 144 384 42 09
Website: www.pbgelatins.com
PB LEINER ARGENTINA
Parque Industrial Sauce Viejo
S3017W16-Sauce Viejo
CC108 – S3016WAC – Santo Tomé
AR-Santa Fe (Argentina)
Tel.: +54 342 450 1100
Fax: +54 342 450 1112
Website: www.pbgelatins.com - www.gelatin.com

PB LEINER USA
7001 Brady Street
PO 2807
US-Davenport, Iowa 52809 (USA)
Tel.: +1 563 386 8040
Fax: +1 563 391 1138
Website: www.pbgelatins.com - www.gelatin.com
SALES OFFICES
PB LEINER ARGENTINA
Arcos 2215 1° Piso – Of. 10
AR-C1428AFI, Buenos Aires (Argentina)
Tel.: +54 11 47 87 5002
Fax: +54 11 47 87 5007
Website: www.pbgelatins.com - www.gelatin.com
PB LEINER USA
366 North Broadway, Suite 307
US-Jericho, NY 11753 (USA)
Tel.: +1 516 822 4040
Fax: +1 516 822 4044
Website: www.pbgelatins.com - www.gelatin.com
TESSENDERLO CHEMIE NEDERLAND BV
PB Gelatins Division
Postbus 3488
NL-5203 DL ‘s-Hertogenbosch (The Netherlands)
Tel.: +31 73 64 50 116
Fax: +31 73 64 50 982
125

126
pages
Acquisitions (recent) leaflet
Addresses 118
American Depositary Receipts (ADR’s) 12
Annual General Meeting cover
Applications 20
Audit (committee) 75
Balance Sheet NV 110
Balance (consolidated) 82
Board of Directors 7/73
Calendar (financial) cover
Call Warrant 72
Capital 113
Capital increase (share) 55
Cash flow cover
Chart of the group 78
Committees 75
Consolidated income statement 84
Consolidated balance 82
Consolidated turnover leaflet
Consolidation differences (goodwill) 100
Consolidation perimeter 92
Corporate Governance 72
Criteria of consolidation 92
Debts (long-term) 89
Dividend 14
Divisions:
Inorganic Chemicals 22
Fine Chemicals 30
PVC & Compounds 34
Plastics Converting 40
Natural Organic Products 46
Environment 56
Equity (shareholders) 105
Figures over 10 years cover
Financial fixed assets 88/105
Financial ratios leaflet
Financing table 86
INDEX
General Assembly of the shareholders cover
Goodwill (consolidation differences) 100
Graphs leaflet
Guarantees 107
Human resources 54
Important figures cover
Index (stock exchange) 12
Intangible assets 87/103
International presence 8
Investor relations 15
Key figures cover
Leadership leaflet
Long-term debts (state of) 89
Management Committee 6/76
Markets 20
NextPrime 12
Next 150 12
Number of shares NV 12
Off-balance sheet commitment 107
Organisation chart companies 78
Pension plan NV 116
Personnel (costs for) 54
Press releases (dates) cover
Production units 118
Products 20
Profile leaflet
Profit distribution 112
Provisions & deferred tax 85/106
Publications results cover
R & D 66
Recycling 58
Results (consolidated) 84
Results NV 112

Safety 56
Sales offices 118
Share Tessenderlo Chemie NV 12
Shareholders 12
Stock options 72
Strategy of the group leaflet
Subsidiary companies 94
Tangible fixed assets 87/104
Taxes 85/91
Turnover breakdown leaflet
Turnover (consolidated) leaflet
Valuation criteria 92
www 125
127

128
Editor
G. Dusar – Corporate Communication
Tessenderlo Chemie International
Troonstraat 130
B-1050 Brussels (Belgium)
Tel.: +32 2 639 18 11
Pre-press and printing
Drukkerij Lannoo, Tielt (B)
Het jaarverslag is tevens beschikbaar in het Nederlands.
Le rapport annuel est également disponible en français.
The Annual Report (in English, Dutch, French) can be consulted on our website:
www.tessenderlogroup.com; see Corporate – Investor Relations.
The Environmental Report (available in English and Dutch) can be downloaded via our website:
www.tessenderlogroup.com; see Safety & Environment – Environmental Report.
Tessenderlo Chemie NV
Administrative Headquarters
rue du Trône 130
B-1050 Brussels (Belgium)
Tel. +32 2 639 18 11
Fax +32 2 639 19 99
Telex 23619 prolimb
BTW/RPR 0 412 101 728
Webstek: www.tessenderlogroup.com