Pharmaceuticals Sector - Solvay

The Solvay share compared with the indexes 2005
110
105
100
95
90
85
80
75
70
65
60
J F M A M J J A S O N D
Solvay Euronext 100 MSCI Chemicals MSCI Pharmaceuticals
From
01/01/05 to
31/12/05
From
01/01/04 to
31/12/05
Solvay 16% 35%
Euronext 100 23% 32%
MSCI Chemicals 21% 38%
MSCI Pharmaceuticals 9% 4%
In 2005 the share price advanced by 16%, on top of a
19% increase in 2004.
The above graph shows that it has outperformed
the reference Euronext 100, MSCI Chemicals and
MSCI Pharmaceuticals reference indexes almost
continuously since September 2004. We note a
marked uplift around March 2005 following the
announcement of the intended acquisition of Fournier
Pharma and again in November, when it reached a
record EUR 104.1.
The Solvay share price can be consulted directly on 2
internet sites:
> www.solvay-investors.com
> www.euronext.com
Financial Information per share
Earnings per share:
Net Group income was EUR 816 million. Minority
interests in this amount total EUR 27 million. In 2005
earnings per share were up 61% at EUR 9.51.
Under IFRS rules, net earnings per share is calculated
by dividing net income (Solvay share) by the weighted
average number of shares, less own shares bought
in by the company to cover share option programs.
Readers are reminded that, under Belgian law, net
earnings per share used to be obtained by dividing net
income (Solvay share) by the total number of shares on
December 31.
Dividend
The net dividend for 2005 proposed to the General
Shareholders’ Meeting of May 9, 2006 is EUR 2.00 per
share, which is 5.3% higher than in 2004. Given the
interim dividend of EUR 0.70 net per share (coupon no.
77) already paid on January 12, 2006, the balance of
EUR 1.30 net per share will be paid on May 16, 2006
(coupon no. 78)
This increase is in line with Group policy of increasing
the dividend whenever possible and, as far as possible,
not reducing it. Over the past 25 years the dividend
has been steadily increased and never reduced.
Gross and net dividend per
share (in EUR)
3,0
2,5
2,0
1,5
1,0
0,5
0,0
2,40 2,40
1,80 1,80
2002
2003
1,90
2,63
2004
2,00
2,67
2005
Net Dividend Gross Dividend
107
Solvay Global Annual Report 2005