Financial Statements - Solvay

Financial Statements
The following fi nancial statements were approved by the Board of Directors meeting on February 18, 2009.
They have been drawn up in accordance with the IFRS accounting policies 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 2007 2008
Sales 9 572 9 490
Cost of goods sold -6 242 -6 381
Gross margin (3) 3 330 3 109
Commercial and administrative costs (4) -1 523 -1 567
Research and development costs (5) -556 -564
Other operating gains and losses (6) -44 -10
Other fi nancial gains and losses (7) -16 -2
REBIT (8) 1 192 965
Non-recurring items (9) 31 20
EBIT 1 223 985
Cost of borrowings (10) -106 -138
Interest on lending and short-term deposits (10) 23 26
Other gains and losses on net indebtedness (10) 2 18
Income/loss from available-for-sale investments (11) 24 -299
Earnings before taxes 1 165 592
Income taxes (12a) -337 -143
Net income of the Group (13) 828 449
Minority interests -47 -44
Net income (Solvay share) 781 405
Earnings per share (EUR) 9.46 4.92
Diluted earnings per share (EUR) (14) 9.40 4.91
RATIOS
Gross margin as a % of sales 34.8 32.8
Times charges earned 14.6 10.3
Income taxes / Earnings before taxes (%) 28.9 24.1
Times charges earned = REBIT / Charges on net indebtedness.
Explanatory notes are found after the fi nancial statements.
In 2007 and 2008 the Group has no discontinued operations as defi ned by IFRS 5.
Financial
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Solvay Global Annual Report 2008
Financial