Pharmaceuticals Sector - Solvay

Analysis of total fi nancial debt by currency
EUR million EUR USD GBP Other Total Average
interest rate
paid
2004 1 787 293 2 116 2 198 5 %
2005 1 749 241 9 130 2 129 5 %
Borrowings and credit lines
The largest borrowings maturing after 2005 are:
• in Belgium: EMTN-note type bond issues by Solvay S.A.:
- 5.5% EUR 700 million, maturing 2006*;
- 4.99% EUR 500 million, maturing 2014;
- 4.99% EUR 300 million, maturing 2018;
• in Germany: our 75% share in the EUR 110 million borrowed to fi nance SolVin (of which EUR 90 million at the fi xed
rate of 3.54%; fi nal maturity 2008) ;
• in Austria: our 50% share of the EUR 165 million borrowed to fi nance Pipelife (fi nal maturity: 2010).
In addition the Group has access to:
- a USD 500 million commercial paper program, USD 220 million of which was used at the end of 2005. This
program is fully covered by back-up credit lines which were unused at the end of 2005;
- a EUR 400 million bank credit line (unused at end-2005), maturing in January 2013. The Solvay group has taken
advantage of fi nancial market conditions to refi nance its EUR 350 million credit line (concluded in July 2003 for an
initial 5-year period) for 7 years in an amount of EUR 400 million;
- a EUR 850 million bank credit line (unused at end-2005), maturing in October 2011.
* Issued swapped at a fl oating interest rate in December 2003
Fair value of fi nancial debts
For fl oating rate fi nancial debts and fi xed-rate debts which have been the subject of a fi xed/fl oating interest rate
swap, the fair value is equal to the face value. The fair value of the Group’s fi xed rate debt at the end of 2005 is:
• EMTN EUR 500 million 2014: EUR 539.6 million
• EMN EUR 300 million 2018: EUR 314.6 million
• Group’s share (75%) in the fi xed rate SolVin fi nancing: EUR 75.3 million
Cash and cash equivalents
Cash and cash equivalents amounted to EUR 449 million, down EUR 954 million from end-2004. This fall is
explained by the use of available cash in July to acquire the Fournier group (EUR 1 200 million). By way of
information the cash and cash equivalents available at the end of June 2005 amounted to EUR 1 567 million.
EUR million 2004 2005
Fixed-income securities 18 14
Term deposits 1 248 186
Cash 137 249
Cash and cash equivalents 1 403 449
Solvay Global Annual Report 2005
87