Financial Statements - Solvay

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106 Solvay Global Annual Report 2008 The amount of milestone payable to former Fournier shareholders as at the end of 2008 depends on future product performance. The decrease in 2008 compared with 2007 corresponds to a portion of the increase of milestones recognized in goodwill. The amounts relating to Joint Ventures are included in the table below. EUR Million 2007 2008 Liabilities and commitments of third parties guaranteed by the company 2 9 Litigation and other major commitments 0 0 (35) Joint ventures The Joint Ventures are proportionately consolidated in the annual accounts at the following amounts (see the list of proportionately consolidated companies). EUR Million 2007 2008 Non-current assets 1 004 667 Current assets 665 421 Non-current liabilities 350 180 Current liabilities 527 366 Sales 2 209 1 143 Cost of goods sold -1 791 -971
Management of Risks Acting responsibly as a corporate citizen and caring for the health, safety and environment of its employees and the community at large are key components of Solvay’s vision that are embedded through the Group’s Responsible Care ® policy. Since its foundation in 1863, Solvay has successfully demonstrated its ability to anticipate and respond appropriately to an ever-changing world and to achieve sustainable and profi table growth with a profound respect and concern for the environmental and social contexts in which it operates. During its June 2006 strategic review, the Executive Committee highlighted risk management as a priority, and decided to further enhance the related processes and measures implemented throughout the Group. Solvay is attentive to taking adequate and selective measures to continue on this path. In the context of the present economic and fi nancial crisis, these elements constitute very important assets for helping the Group to face its various challenges. In its 146-year history, Solvay has built up a solid track record of good practices in the management of the risks inherent to its chemical and pharmaceutical activities. The diverse businesses within the Group generate a variety of risks, some of which could possibly affect the Company as a whole. But diversifi cation contributes to the reduction of the overall risk, as the Company’s different businesses, processes, policies and structures offset some risks against each other, merely through a balanced portfolio of products. Solvay’s policy is to achieve good Enterprise Risk Management: – our policy is to identify, assess and manage all potentially signifi cant business opportunities and risks, by applying systematic risk management integrated with strategy, business decisions and operations; – while continuously improving our risk management capabilities, we achieve risk awareness and confi dence in entrepreneurship and make risk management part of everyone’s job. Solvay has defi ned ten categories of risk: – Market & Growth – Strategic risk, – Supply Chain and Manufacturing risk, – Regulatory, Political and Legal risk, – Corporate Governance and risks attached to Internal Procedures, – Financial risk, – Product risk, – Risk to people, – Environmental risk, – Information and IT risk, – Reputational risk. A special Competence Center within Financial Management develops tools, provides advice and proposes strategies to help entities manage their risks more systematically. In the course of 2006-2008, each Business Unit was analyzed to identify the signifi cant risks, in the above ten categories, and initiatives have been undertaken to mitigate the main ones among them. This group-wide risk analysis with ensuing risk reduction measures will be repeated in 2009. Risk management is now widely integrated into enterprise strategies, enabling the Group to move ahead in major investment strategies cognizant of the attached risks and taking the necessary steps to mitigate them. The following objectives have been validated for 2012: – systematically improving risk management in each of the ten categories; – raising awareness so that each manager knows the main risks in his or her own area of responsibility, and steps that can be taken to reduce them. The purpose of this report is to describe the risk associated with each category and to outline the actions undertaken by the Group to reduce that risk. The dramatic deterioration of fi nancial markets and of global macro economic conditions has increased risks like volatility of raw material and energy prices, counterparty risks and reduced availability of funding. Solvay has responded with appropriate mitigation measures. The Sustainable Development initiative is helping to reduce risk and realize opportunities, especially in the Strategic Risk area. Financial 107 Solvay Global Annual Report 2008 Financial
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Managing Challenges Solvay Global A
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Key fi gures - Solvay Group Financi
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February 1 Caprolactones Solvay con
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Apart from increasing our competiti
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and optional overtime and taking of
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... and Long-Term Value Creation Th
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and using it without limits, the pi
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Chemicals Sales: EUR 3.1 billion -
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2008 : operating result down 19% on
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EUR million 2007 2008 2008/2007 GRO
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Balance sheet Total Equity stood at
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Current profi t before taxes amount
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Robot in Weesp. This 384 wells plat
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Key fi gures [EUR million] 2006 200
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Flagship Products in 2008 Therapeut
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Sales of less important products In
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Sodium bicarbonate. Sodium bicarbon
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natural resources and limit waste d
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The Organic cluster: Molecular Solu
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Solvay specialty polymers The outst
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Technological leadership through Re
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production capacities have been inc
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New Business Development OLED. Orga
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future) reacts with atmospheric oxy
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Increasing cultural diversity. Solv
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New career management process In 20
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The 5x5 Matrix The 5x5 Matrix is th
Page 59 and 60: Investors: responding to growing in
Page 61 and 62: Financial Statements The following
Page 63 and 64: Consolidated balance sheet EUR Mill
Page 65 and 66: Minority interests The increase in
Page 67 and 68: • IFRIC 15 Agreements for the con
Page 69 and 70: 9. Research and Development costs R
Page 71 and 72: Key assumptions & key sources of es
Page 73 and 74: General description of the segments
Page 75 and 76: Information per primary segment for
Page 77 and 78: For the Pharmaceuticals Sector, whi
Page 79 and 80: - Current tax represents the tax pa
Page 81 and 82: Other information All the Group’s
Page 83 and 84: The acquisitions in 2008 consist ma
Page 85 and 86: Alexandria Sodium Carbonate On 17 O
Page 87 and 88: (20) Capital increase / redemption
Page 89 and 90: Consolidated balance sheet (22) Int
Page 91 and 92: (24) Tangible assets (including fi
Page 93 and 94: (26) Other investments EUR million
Page 95 and 96: (29) Provisions EUR Million Employe
Page 97 and 98: The amounts recorded in the balance
Page 99 and 100: Actuarial assumptions used in deter
Page 101 and 102: - the risks attached to ongoing lit
Page 103 and 104: Fair value of fi nancial debts For
Page 105 and 106: ) Balance sheet risk The Group’s
Page 107 and 108: Financial instruments IAS 39 defi n
Page 109: (32) Assets held for sale and liabi
Page 113 and 114: In reference to Raw Materials, in a
Page 115 and 116: Since 2007 a compliance organizatio
Page 117 and 118: Participation in venture capital fu
Page 119 and 120: Compensation report 1. Description
Page 121 and 122: affi liated to the Pension Regulati
Page 123 and 124: Companies leaving the Group Country
Page 125 and 126: SolVin France SA, Paris 75 Pl Vival
Page 127 and 128: Solvay Soda Ash Joint Venture, Hous
Page 129 and 130: FINLAND Pipelife Finland OY, Oulu 5
Page 131 and 132: Summary fi nancial statements of So
Page 133 and 134: STATUTORY AUDITOR’S REPORT To the
Page 135 and 136: Report on the application of the Co
Page 137 and 138: Introduction This report presents t
Page 139 and 140: The Board of Directors noted their
Page 141 and 142: notice of the meeting by mail at th
Page 143 and 144: Year of birth Year of 1st appointme
Page 145 and 146: eing a non-executive director of a
Page 147 and 148: 4.5.2. The Audit Committee At Janua
Page 149 and 150: corresponding to the decision or re
Page 151 and 152: which remained valid for the 2008 f
Page 153 and 154: Manager, a member of the Executive
Page 155 and 156: EUR The Solvay share compared with
Page 157 and 158: ANNEX 1 Audit Committee Mission Sta
Page 159 and 160: during the 30 days preceding the st
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Executive Committee 1 | Christian J
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ABAF: Belgian Financial Analysts As
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Shareholders’ Diary - Tuesday May
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Financial Statements - Solvay

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