Pharmaceuticals Sector - Solvay

The deferred taxes recorded in the balance sheet fall into the following categories:
Deferred tax
assets
Deferred tax
fi abilies
EUR million 2004 2005 2004 2005
Employee benefi ts obligations 211 239
Provisions other than employee benefi ts 173 250
Tax losses 364 379
Tax credits 58 54
Depreciation of tangible assets and amortization of intangible assets 393 386 -374 -514 (1)
Development costs -4 -1
Other 143 159 -210 -250
Total 1 342 1 467 -588 -765
Valuation allowance on deferred tax assets -329 -346
Offset -457 -611 457 611
Total 556 510 -131 -154
(1) Increase in deferred liabilities due to the acqusition of companies in 2005
Other information
All the Group’s tax loss carryforwards have generated deferred tax assets, on certain of which valuation allowances
have been recorded. These tax loss carryforwards are given below by expiry date.
EUR million 2004 2005
Within 1 year 2 43
Within 2 years 41 49
Within 3 years 72 1
Within 4 years 47 24
Within 5 or more years 147 117
No time limit 902 1 019
(12) Discontinued operations
With the coming into effect of IFRS 5 at the beginning of 2005, net earnings from discontinued operations are
required to be presented on a single line in the income statement.
In 2004 this item consisted of the operating earnings of the salt activity (EUR 11 million before and after income tax),
industrial foils (EUR 23 million pre-tax and EUR 20 million after income tax) and high density polyethylene
(EUR 2 million before and after income tax). It also includes the capital gain on the sale of the salt activity
(EUR 33 million before and after income tax).
In 2005 this item consists of the capital gain on the sale of the high density polyethylene activity (EUR 532 million
before tax and EUR 472 million after income tax) and the net profi t of the industrial foils activity (EUR 9 million pre-tax
and EUR 4 million after income tax).
Further details on discontinued activities are given in the segment reporting in note (1).
The industrial foils activity covers the production, marketing and distribution of plastic sheets and foils. This activity,
which is part of the Plastics Sector, will be sold to Renolit AG in 2006.
Discontinued operations are reported in the balance sheet under “assets held for sale” and “liabilities associated with
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