+1 - Solvay

Financial Statements
The following financial statements were approved by the Board of Directors meeting on February 14, 2007.
They have been drawn up in accordance with the IFRS accounting principles which are set out in the coming pages.
Information on related parties required by IAS 24 can be found in the “Corporate Governance” chapter.
Consolidated income statement (Notes 1-2)
EUR Million Notes 2006 2007
Net sales 9 399 9 572
Cost of goods sold -6 126 -6 242
Gross margin (3) 3 273 3 330
Commercial and administrative costs (4) -1 559 -1 523
Research and development costs (5) -563 -556
Other operating gains and losses (6) -31 -44
Other financial gains and losses (7) -21 -16
REBIT (8) 1 099 1 192
Non-recurring items (9) -143 31
EBIT 956 1 223
Cost of borrowings (10) -111 -106
Interest on lending and short-term deposits (10) 28 23
Other operating gains and losses on net indebtedness (10) 1 2
Income from investments (11) 19 24
Earnings before taxes 893 1 165
Income taxes (12a) -179 -337
Discontinued operations (13) 103 0
Net income of the Group (14) 817 828
Minority interests -26 -47
Net income (Solvay share) 791 781
Earnings per share from continuing operations (EUR) 8.33 9.46
Earnings per share (EUR) 9.57 9.46
Diluted earnings per share (EUR) (15) 9.52 9.40
RATIOS
Gross margin as a % of sales 34.8 34.8
Times charges earned 13.4 14.6
Income taxes / Earnings before taxes (%) 20.0 28.9
Times charges earned = REBIT / Charges on net indebtedness.
Explanatory notes are found after the financial statements.
Financial
Solvay Global Annual Report 2007
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